Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2022)

46 slides from Rheinmetall's investor day presentation, November 2022

Slide 1: Timeline
Rheinmetall – Capital Markets Day 2022 TIMELINE Armin 9:00 Supercycle 2.0 Papperger 10:10 Coffee break Helmut 10:30 Financials of the supercycle Merch 11:00 Q & A 12:00 Lunch WIFI Capital-Market-Day-Vienna 13:00 Plant tour PW CMD2022! © Rheinmetall AG I November 2022 1
Slide 2: Supercycle 2.0 – Rheinmetall's responsibility in a changing world
Rheinmetall – Capital Markets Day 2022 Supercycle 2.0 – Rheinmetall’s responsibility in a changing world Armin Papperger, CEO November 2022 © Rheinmetall AG I November 2022 2
Slide 3: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 3
Slide 4: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 4
Slide 5: Strategy Recap: Our strategic vision is becoming a reality
Rheinmetall – Capital Markets Day 2022 Strategy Recap Our strategic vision is becoming a reality TRANSFORMATION GROWTH PORTFOLIO TECHNOLOGY SUSTAINABILITY DIVISIONAL STRUCTURE ACCELERATED GROWTH ACTIVE PORTFOLIO TECHNOLOGY FOCUS ESG INTEGRAL PART OF WELL IMPLEMENTED IN ALL END MARKETS MANAGEMENT DEF
Slide 6: Strategy Recap: Sustainability
Rheinmetall – Capital Markets Day 2022 Strategy Recap: Sustainability Solid ratings confirm our chosen path and we are determined to improve further Targets  Integration of sustainability in our strategy and actions  Carbon neutrality aspired until 2035  No development, production and distributio
Slide 7: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 7
Slide 8: The world as we know it is changing dramatically
Rheinmetall – Capital Markets Day 2022 The world as we know it is changing dramatically – with implications for virtually every aspect of our business World economy is being restructured A new world (dis)order is emerging The battle for resources intensifies. New forms of energy production. © Rheinm
Slide 9: Growth factors: NATO Alliance
Rheinmetall – Capital Markets Day 2022 Growth factors: NATO Alliance NATO spending has accelerated NATO total expenditures in trillion US-$ +23.3% New members to join NATO 1.268 +0.3% 1.136 1.155 1.105 1.026 1.013 1.029 0.910 0.912 Recently announced defence budget increases previous value (1.41 %)
Slide 10: Growth factors: Home Markets
Rheinmetall – Capital Markets Day 2022 Growth factors: Home Markets Home markets offer further potentials for growth OUR HOME MARKETS Germany Australia UK Hungary  Largest customer  Established „home market“  JV with BAE serves „home  Established „home market“ with  Commitment to 2% goal and 
Slide 11: Growth factors: Germany
Rheinmetall – Capital Markets Day 2022 Growth factors: Germany Financing of growth is secured to achieve 2% Germany has committed to: Special Fund German defence spending Olaf Scholz 100€bn German Federal Chancellor “Our [German] army must become the foundation of conventional defence in + = >2 % De
Slide 12: Growth factors: Developing markets
Rheinmetall – Capital Markets Day 2022 Growth factors: Developing markets Australia intends to invest around €175bn for the next decade Total Australian Defence Investment* Rheinmetall Defence Australia sales (% of total RHM sales) 14.6% 13.1% 13.0% 10.8% 10.5% 7.9% €35bn for 1.8% Land 2015 2016 201
Slide 13: Continuing the success story in Australia
Rheinmetall – Capital Markets Day 2022 Growth factors: Developing markets Continuing the success story in Australia LAND LAND 400 II 121 Phase 3b 400 Phase II 121 Phase 5b 400 Phase III €1.2bn €2.1bn €430m ~€4bn ~2.500 HX81* 225 Boxer CRV 1.000 HX 81* 450 Lynx 2016-2020** 2020-2026** 2019-2024** 202
Slide 14: Growth factors: Creating additional markets
Rheinmetall – Capital Markets Day 2022 Growth factors: Creating additional markets Become a significant business activity in the world’s largest defense market NATO Military Spending Split 2021* Rheinmetall Defence US sales 13% 2.8% % of total RHM def. sales cagr+45% 2.3% 1.9% 1.2% 87% 2019 2020 202
Slide 15: $50bn tender value pursued with a new market approach
Rheinmetall – Capital Markets Day 2022 Growth factors: Creating additional markets $50bn tender value pursued with a new market approach Next Generation Vehicle Platforms Next Generation Munitions Lynx – Optionally Manned Fighting Vehicle  Americanization of Lynx next-gen platform  Strong all Amer
Slide 16: Modernization of Southern Europe
Rheinmetall – Capital Markets Day 2022 Growth factors: Developing Home markets Modernization of Southern Europe Italy Greece  10 year budget with up to €8bn for the  IFV Marder already participated in Greece renovation of the armored vehicle fleet Independence Parade MBT: Replacement of the Ariete
Slide 17: Growth factors: Electrification
Rheinmetall – Capital Markets Day 2022 Growth factors: Electricifcation Declining ICE volumes and accelerated growth for alternative powertrains IHS LV production forecast* In million units 105 EV +4% 101 +6% Hybrid 90 82 85 77 ICE 14% 23% 38% 52% 6% 11% 13% 16% 21% 27% 19% 15% 81% 73% 65% 50% 43% 3
Slide 18: Civil business portfolio well prepared to address market potentials
Rheinmetall – Capital Markets Day 2022 Growth factors: Electrification Civil business portfolio well prepared to address market potentials Electrification Industrial Technology  Drive market penetration  Digital solutions for mobility and industry applications  Well equipped Electrification Portf
Slide 19: Growth factors: Diversification
Rheinmetall – Capital Markets Day 2022 Growth factors: Diversification Accessing new markets with market leaders  JV with technology leader in DC link capacitors  Market-ready products in the mobility, industry and defense sectors  JV with leading provider of innovative biometric products in Germ
Slide 20: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 20
Slide 21: Market dynamics: Lessons learned from war in Ukraine
Rheinmetall – Capital Markets Day 2022 Market dynamics: Lessons learned from war in Ukraine Acquisition of EXPAL positions Rheinmetall perfectly for high growth scenario NATO requires a Ukraine war puts Industry capacities minimum of 30 days of restocking at risk overwhelmed ammo inventory • Demand
Slide 22: Target overview: About EXPAL Systems S.A.
Rheinmetall – Capital Markets Day 2022 Target overview: About EXPAL Systems S.A. EXPAL is a high-caliber investment opportunity with a superior value proposition EXPAL Systems S.A.  A global defense and security company offering high-end technology solutions for the Armed Forces’ current and future
Slide 23: Target overview: EXPAL product portfolio
Rheinmetall – Capital Markets Day 2022 Target overview: EXPAL product portfolio Full offering of mission-critical products to expand our business Mortar & Air Fuzes and Mortar Combat Eng. Artillery Med Cal Grenades Armament missile Systems DEMIL et al propulsion 41%* 17%* 12%* 5%* 6%* 6%* 13%* Field
Slide 24: EXPAL Key investment Highlight
Rheinmetall – Capital Markets Day 2022 EXPAL Key investment Highlight A unique opportunity offering a superior value proposition Commercial Fit Portfolio Fit Sustainable Sales Growth Sustainable Profitability Scalable Mass Production Horizontal Diversification Continous market growth Lean cost struc
Slide 25: Excess capacities allow for flexible adjustment to demand
Rheinmetall – Capital Markets Day 2022 EXPAL Key investment Highlight Excess capacities allow for flexible adjustment to demand expansion Artillery Medium Calibre In rounds In rounds >250,000 >350,000 >1,000,000 >2,000,000 >1,000,000 >100,000 Rheinmetall Expal Combined Capacity Rheinmetall Expal Com
Slide 26: Attractive financial profile with superior margins and cash conversion
Rheinmetall – Capital Markets Day 2022 EXPAL Key investment Highlight Attractive financial profile with superior margins and cash conversion Strong backlog to turbo • Current backlog of ~€520m charge organic growth • Strong acceleration sparked by increasing demand Sales growth • Company’s total cap
Slide 27: Acquisition Summary
Rheinmetall – Capital Markets Day 2022 Acquisition Summary Strategic move to strengthen our core business Financial Transaction Rationale Timeline evaluation  Rheinmetall acquires  Readily available state-  ~10x EV/EBITDA FY 2023  Signing on November 100% of privately of-the-art capacities  Fin
Slide 28: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 28
Slide 29: Mid-term guidance: The supercycle 2.0 is happening
Rheinmetall – Capital Markets Day 2022 Mid-term guidance: The supercycle 2.0 is happening Top potentials Sales contribution  Ammunition Germany share of total sales estimates in %  Trucks Germany  Puma  Lynx Phase III  “Schwerer Waffentraeger” ~40%  Soldier Systems  Characal  Air defense pro
Slide 30: Mid-term guidance: Double digit growth over the next years
Rheinmetall – Capital Markets Day 2022 Mid-term guidance: Double digit growth over the next 5 years In €bn, operating margin in % 10.5% >11% ~13% ~10.0-11.0 >20% ~2.5 ~6.5 11-12% ~1.5-2.0 ~5.7 10-12% 4.0-5.0 ~10% ~2.0 >10% <1.0 -500 2021a 2022e 2025 target © Rheinmetall AG I November 2022 M&T S&A VS
Slide 31: Mid-term guidance
Rheinmetall – Capital Markets Day 2022 Mid-term guidance 2021 2025 €5.7bn group sales Around €10-11bn group sales Group margin of 10.5% Group margin of ~13% FCF margin of 7.4% FCF margin of 4-6%  Leading tier 1 supplier to the OEM  Major player in the e-mobility and hydrogen markets  Innovative p
Slide 32: Agenda
Rheinmetall – Capital Markets Day 2022 Taking Rheinmetall to the next level AGENDA STRATEGY RECAP 01 03 INORGANIC GROWTH GROWTH FACTORS 02 04 MID-TERM GUIDANCE 05 INNOVATIONS © Rheinmetall AG I November 2022 32
Slide 33: Innovations for the Supercycle – How Rheinmetall is shaping the future
Rheinmetall – Capital Markets Day 2022 Innovations for the Supercycle – How Rheinmetall is shaping the future Armin Papperger, CEO November 2022 © Rheinmetall AG I November 2022 33
Slide 35: Tele-Operation: Key Enabler for military Autonomy
Rheinmetall – Capital Markets Day 2022 Tele-Operation Key Enabler for military Autonomy Tele-operation will mature key technologies on the way to full system autonomy:  Drive by wire/Control by wire technology  System Safety Qualification  Secure Communications Unmanned Operations  Real time/Low
Slide 37: ES digital ecosystem – Capability enabler for moving forces
Rheinmetall – Capital Markets Day 2022 ES digital ecosystem – Capability enabler for moving forces “We sense the “We connect the “We automate and Rheinmetall ES is the battlefield” battlefield” dominate the leading system house for battlefield” connected land forces. Command & Control Providing solu
Slide 38: Fully digitized task force – Customer Hungary
Rheinmetall – Capital Markets Day 2022 Fully digitized task force – Customer Hungary Rollout of the digital ecosystem in focus markets. Realizing localization concept with Hungarian partners. Digitized Fully digitized Roadmap 2 Digitalization Hungarian Soldier Mechanized Task Force Infantry System ©
Slide 39: Electrification: Innovations for electric mobility
Rheinmetall – Capital Markets Day 2022 Electrification Innovations for electric mobility  HV-contactor & pyrotechnic HV-switch: B-sample to customers Q3/2022  DC link capacitor: A-phase functional sample in Q1/2023  Electric air-conditioning compressor: SOP by October 2023 © Rheinmetall AG I Nove
Slide 40: HITRON 8xE – Hybrid Combat Vehicle presented at Eurosatory 2022
Rheinmetall – Capital Markets Day 2022 Electrification HITRON 8xE – Hybrid Combat Vehicle presented at Eurosatory 2022 HYBRID FIRST SERIES BECOMING ELECTRIC DRIVE HYBRID COMBAT VEHICLE TECHNOLOGY LEADER Future oriented system design with Funded development program to Key enabling technologies being
Slide 41: A new tank for a market that can't wait
Rheinmetall – Capital Markets Day 2022 Innovation A new tank for a market that can’t wait INCREASED LETHALITY IMPRESSIVE MOBILITY HIGHER PROTECTION BETTER CONNECTION NATO market NATO market 2025-2035 2035+ 500-800+ 5.000-8.000 © Rheinmetall AG I November 2022 41
Slide 42: HERO Loitering Munitions – a game changer in the battlefield
Rheinmetall – Capital Markets Day 2022 Innovation HERO Loitering Munitions – a game changer in the battlefield  Rheinmetall teamed up with UVision to offer the most advanced systems in this field  Wide range of specifications from 0.5 to 10kg warhead and a range from 10 to 60km On land In the air
Slide 43: Renaissance of Air Defence
Rheinmetall – Capital Markets Day 2022 Renaissance of Air Defence Strengthening SHORAD has proven to be crucial in the Ukraine conflict Rheinmetall commands an extensive suite of Sensors  Skymaster – Battle Management Systems  Tactical Acquisition Radars  Multi-Sensor Unit Effectors  Revolver Gu
Slide 44: H2-Technologies
Rheinmetall – Capital Markets Day 2022 H2-Technologies  2022 Start of small series production for fuel cell system components. Lifetime-Sales  2024 Sample of Type IV pressure tanks (LORICA) in customer trials >€350m  2025 Market launch of precious metal-free electrodes for alkaline electrolysis (
Slide 45: H2 Technologies: Innovating the hydrogen pressure tank system
Rheinmetall WASSERSTOFF – Capital Markets Day 2022 H2 Technologies: Innovating the hydrogen pressure tank system Project-Idee and USP Applications Rheinmetall 1 4 EMT 3 2 Train Naval Generator Drones Military Vehicles 1 Multifilament-Winding Car Logistics 2 Active cooling Military 3 Innovative On-Ta

Rheinmetall — Investor Day (November 2022) on 6ix

Rheinmetall — Investor Day (November 2022)

Slide 1: Timeline

Slide 2: Supercycle 2.0 – Rheinmetall's responsibility in a changing world

Slide 3: Agenda

Slide 4: Agenda

Slide 5: Strategy Recap: Our strategic vision is becoming a reality

Slide 6: Strategy Recap: Sustainability

Slide 7: Agenda

Slide 8: The world as we know it is changing dramatically

Slide 9: Growth factors: NATO Alliance

Slide 10: Growth factors: Home Markets

Slide 11: Growth factors: Germany

Slide 12: Growth factors: Developing markets

Slide 13: Continuing the success story in Australia

Slide 14: Growth factors: Creating additional markets

Slide 15: $50bn tender value pursued with a new market approach

Slide 16: Modernization of Southern Europe

Slide 17: Growth factors: Electrification

Slide 18: Civil business portfolio well prepared to address market potentials

Slide 19: Growth factors: Diversification

Slide 20: Agenda

Slide 21: Market dynamics: Lessons learned from war in Ukraine

Slide 22: Target overview: About EXPAL Systems S.A.

Slide 23: Target overview: EXPAL product portfolio

Slide 24: EXPAL Key investment Highlight

Slide 25: Excess capacities allow for flexible adjustment to demand

Slide 26: Attractive financial profile with superior margins and cash conversion

Slide 27: Acquisition Summary

Slide 28: Agenda

Slide 29: Mid-term guidance: The supercycle 2.0 is happening

Slide 30: Mid-term guidance: Double digit growth over the next years

Slide 31: Mid-term guidance

Slide 32: Agenda

Slide 33: Innovations for the Supercycle – How Rheinmetall is shaping the future

Slide 34: Autonomy

Slide 35: Tele-Operation: Key Enabler for military Autonomy

Slide 36: Digitization

Slide 37: ES digital ecosystem – Capability enabler for moving forces

Slide 38: Fully digitized task force – Customer Hungary

Slide 39: Electrification: Innovations for electric mobility

Slide 40: HITRON 8xE – Hybrid Combat Vehicle presented at Eurosatory 2022

Slide 41: A new tank for a market that can't wait

Slide 42: HERO Loitering Munitions – a game changer in the battlefield

Slide 43: Renaissance of Air Defence

Slide 44: H2-Technologies

Slide 45: H2 Technologies: Innovating the hydrogen pressure tank system

Slide 46: © Rheinmetall AG I November 2022