Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Presentation (May 2021)
79 slides from Rheinmetall's investor presentation, May 18, 2021
Slide 1: Rheinmetall Group Corporate Presentation May 2021
Rheinmetall Group Corporate Presentation May 2021
Slide 2: Mobility and security form the DNA of the business model
Rheinmetall Group Mobility and security form the DNA of the business model RHEINMETALL GROUP INTEGRATED TECHNOLOGY GROUP FOR SECURITY AND MOBILITY Automotive Our heart beats for your engine Defence Force protection is our mission Tier 1 supplier System house for land based operations Business mo
Slide 3: Highlights
Rheinmetall Group Highlights Group performance indicator Strategy roadmap Grow sales ~8% op. Organic International around 8% margin RHEINMETALL growth expansion Targeted 2-4% Cash on sales 30-35% payout ratio GROUP Leading by innovations Targeted acquisitions AUTOMOTIVE Our heart beats for your engi
Slide 4: Financial overview - Growth in all relevant KPI
Rheinmetall Group Financial overview - Growth in all relevant KPI Sales, operating result and operating margin Operating FCF and operating FCF to Sales In €m In €m / in % 4,7% 5,0% 6.500 6.255 12 400 5 6.148 314 3,7% 5.896 5.875 10 300 276 4 6.000 2-4% 5.602 8 217 3 OFCF 200 161 5.500 5.183 8,0% 8,1
Slide 5: Rheinmetall Automotive Products per division
Rheinmetall Automotive Products per division MECHATRONICS HARDPARTS AFTERMARKET PUMP TECHNOLOGY SMALL BORE PISTONS HARDPARTS AUTOMOTOVE EMISSION SYSTEMS BEARINGS MECHATRONICS SOLENOID VALVES LARGE BORE PISTONS COMMERCIAL DIESEL SYSTEMS CASTINGS ACTUATORS Rheinmetall AG - Corporate Presentation May 2
Slide 6: Rheinmetall Defence Products per division
Rheinmetall Defence Products per division WEAPON AND ELECTRONIC VEHICLE AMMUNITION SOLUTIONS SYSTEMS HX-FAMILY MID & LARGE CALIBER AMMO INTEGRATED ELECTRONIC SYSTEMS TACTICAL VEHICLES MID & LARGE CALIBER WEAPONS AIR DEFENCE & RADAR SYSTEMS LOGISTIC VEHICLES TECHNICAL PUBLICATIONS Medium wheeled Medi
Slide 7: One Rheinmetall
One Rheinmetall Realization of growth in changing market conditions Positioning as integrated technology group for Mobility and Security Realization of growth potentials in changing market environments ONE Leveraging strengths by bundling and channeling our expertise and RHEINMETALL competenci
Slide 8: Strategy Update
STRATEGY UPDATE Taking Rheinmetall to the next level Rheinmetall AG - Corporate Presentation May 2021 8
Slide 9: Management sets clear strategic objectives
Strategy update Management sets clear strategic objectives 1 Reduce Automotive exposure 2 Minimum profitability level requirement 3 Continuous portfolio management Rheinmetall AG - Corporate Presentation May 2021 9
Slide 10: Transformation process initiated
Strategy update Transformation process initiated Realignment Integration of of existing business Automotive holding • Disposal process of the piston business • Right-size the structure to support the business • Regrouping of business activities • Eliminate redundant functions on • Focused approach w
Slide 11: The new corporate structure
Strategy update The new corporate structure 2020 2021 Rheinmetall Group Rheinmetall Rheinmetall Group Group Holding Holding Automotive Weapon and Electronic Vehicle Sensors and Materials Defence Pistons Holding Ammunition Solutions Systems Actuators and Trade Non-core business Weapon & Ammunition Me
Slide 12: Strong measures to improve the Automotive situation
Strategy update Strong measures to improve the Automotive situation Pistons decided non-core Realignment of the core business Superb engineering and business production capabilities form our innovation culture Find a better owner for Right-sizing the organization Leveraging of technologies the pisto
Slide 13: Sensors and Actuators: Focus on profitable growth
Strategy update Sensors and Actuators: Focus on profitable growth IHS Sensors and Historic performance (2015-2019) LV production* Actuators In million units Sales In € billion • Sales growth of 1.3% CAGR vs. flat global LV volumes growth* +5.4% CAGR +10% CAGR • 9.3% average operating margin 95 ~2.0
Slide 14: Sensors and Actuators: Three pillars of growth
Strategy update Sensors and Actuators: Three pillars of growth Innovative solutions for Growth in alternative Diversify into clean mobility powertrains (AP) new applications Tighter Regulation of fuel fumes Electrified Mobility Sustainability and Performance Electronic Vapor Pump (EVAP) Thermal Mana
Slide 15: Sensors and Actuators: China JV clearly outperform market
Strategy update Sensors and Actuators: China JV clearly outperfom market IHS LV production* China JV (100% pro forma sales ) In million units; CAGR 2020-25 In € million; CAGR 2020-25 BEV Strong profitable growth of at equity Hybrid consolidated sales ICE +4.7% 29.4 ~400 • Introduction of fuel fume r
Slide 16: Materials and Trade: Well positioned to capture opportunities
Strategy update Materials and Trade: Well positioned to capture opportunities Aftermarket Bearings Castings (Joint Ventures) Solid profitability Shift to non-ICE applications Technology leadership 5% CAGR 7% CAGR 7% CAGR ~440 ~300 ~1,100 ~340 ~800 ~200 2020e 2025p 2020e 2025p 2020e 2025p Flexible
Slide 17: Defence budgets demonstrate robustness despite Covid
Strategy update 2021 Defence budgets demonstrate robustness despite Covid 2022 2023 Germany Australia UK* Hungary USA Stable Growing Growing Growing Stable Threat scenario • Russia and China defence Tender • Large vehicle programmes with persists spending increased at 10% ongoing temporary delays, b
Slide 18: Competitive vehicles portfolio offers huge potential
Strategy update Competitive vehicles portfolio offers huge potential Infantry Main Wheeled Trucks fighting vehicles battle tanks vehicles • Puma • Leopard • 4x4 HU JV • HX-Family • Lynx • Challenger • 6x6 New Fox • Future trucks • MGCS • 8x8 Boxer ~€15 ̶ 40 bn ~€5 bn ~€5 ̶ 6 bn ~€7 ̶ 8 bn 10 years‘
Slide 19: Hungary is a catalyst for our Lynx pipeline
Strategy update Hungary is a catalyst for our Lynx pipeline Australia Eastern Europe USA US Army Bradley replacement ~4000 vehicles ~ € 40 bn Slovakia and Tender: 2021-2023 Slovenia Czech Land 400 Phase III Start of Tender: Potential start of ~450 vehicles production: 2028 2024/25 Hungary ~200 veh
Slide 20: Vehicle Systems main driver for mid-term growth
Strategy update Vehicle Systems main driver for mid-term growth 2020e Sales 2025 Targeted Sales ~€ 5.5 bn 27 % ~€ 3.7 bn Weapon & Ammunition 30 % 22 % Electronic Solutions 23 % Vehicle Systems 51 % 47 % % share based on unconsolidated sales distribution Rheinmetall AG - Corporate Presentation May 20
Slide 21: Stronger focus on Defence with ICE exposure below 20%
Strategy update Stronger focus on Defence with ICE exposure below 20% 2020e Sales 2025 Targeted Sales ~30% ICE exposure ~37% Non ICE ~9% ~15-20% ~28% ~€5.9 bn ~€8.5 bn ~10-15% Non ICE ICE and new applications ~63% ~70% Defence exposure Defence exposure ICE = Internal Combustion Engine Rheinmetall AG
Slide 22: Commitment to our technological leadership
Strategy update Commitment to our technological leadership ONE Rheinmetall Passion for technology Re-organization to Leverage our core Focus on growth better fit our needs technological strengths business areas • Divest non-core business • Further integrate technologies • Continue our successful Def
Slide 23: Upgrading our financial targets for 2025
Strategy update Upgrading our financial targets for 2025 Attractive growth profile Higher profitability Focus on free cash flow Sales target Margin target Cash to sales target* ~ € 8.5 bn ≥ 10% ~ 3-5% Passion for Performance *OFCF to sales ratio Rheinmetall AG - Corporate Presentation May 2021 23
Slide 24: Automotive: A changing world
AUTOMOTIVE A changing world Rheinmetall AG - Corporate Presentation May 2021 24
Slide 25: Automotive Leading technology and market positions
Automotive Leading technology and market positions Key Figures 2020 Sales by division* Sales by region Sales Total Management View Sales: €2.2bn Aftermarket Hardparts Asia 5% RoW China JV-Sales 15% in €bn 31% 18% 0.9 Op. result: €33m USMCA 17% Europe w/o 2.2 Op. margin: 1.5% 54% 18% Consolidated Mec
Slide 26: Automotive Leading technology and market positions
Automotive Leading technology and market positions Sales driver Segment Structure Key Competitor Differentiator Hardparts Hardparts Strong brand Megatrend mobility Pistons Mahle, Nemak, GGB, Growing demand for Castings Tenneco (Federal Global footprint Bearings Mogul), Dong Yang Stro
Slide 27: Product portfolio by division and engine type
Automotive overview Product portfolio by division and engine type VACUUM PUMPS EXHAUST CONTROL FUEL TANK ISOLATION THERMAL MANAGEMENT HRB eCATHODE VALVE MECHATRONICS VALVE VALVE GEN. 3 ELECTRICAL COOLANT GASOLINE EGR HIGH-VOLTAGE E-MOTOR COOLING EGR MODULE SC AIR SYSTEM eWastegate PUMP COOLANT PUMP
Slide 28: Rising global fleet and regulatory restrictions are supporting our growth
Drivers for growth Rising global fleet and regulatory restrictions are supporting our growth LV production forecast* Further regulatory pressure*** Automotive sales distribution [mUnits] +7% by engine type** +29% 102 CO2 NOx -17% 95 in g/km in mg/km 89 Core Diesel 13% 20% 4% 2% -24% -56% Other
Slide 29: The growth drivers remain strong
Automotive Market trends The growth drivers remain strong NT E 3+ Efficiency (CO2 Reduction) Emission (Reduction) Electrification Outside powertrain The innovation pipeline is packed! Rheinmetall AG - Corporate Presentation May 2021 29
Slide 30: CO2 reduction with Automotive products – gasoline engine vehicle
Efficiency CO2 - reduction with Automotive products – gasoline engine vehicle 130 g 95 g CO2/km CO2/km 2015 2021 -1 g -3 g -3 g -7 g -2 g -2 g CO2/km CO2/km CO2/km CO2/km CO2/km CO2/km Variable Tribology Electr. control Variable Electr. Lightweight oil pump system valve and variable valve train EGR
Slide 31: Electrification Rheinmetall Automotive products
Electrification Rheinmetall Automotive products Rheinmetall AG - Corporate Presentation May 2021 31
Slide 32: Micro Mobility: competitive product into a booming market
Micro Mobility Starting with competitive product into a booming market High growth market Unique selling proposition European market with 10% CAGR between 2018 and Smooth phasing of engine support 2030 Excellent freewheeling High market concentration with Bosch representing Low weight and
Slide 33: Increasing portfolio for non-LV applications
Diversification Increasing portfolio for non-LV applications Trucks Large bore pistons Bearings & Aftermarket continuous casting Diverse portfolio for E.g. ship and locomotive truck applications pistons Sanitary application Global supply of spare parts Rheinmetall AG - Corporate Presentation May 202
Slide 34: Diverse portfolio for truck applications
Trucks Diverse portfolio for truck applications Permaglide bearings for truck compressors and truck hydraulics Main coolant pumps Aluminum pistons Auxiliary coolant pumps Steel pistons Electrical oil pumps Piston rings Cooperation with Riken Bushings for injection pumps Main-bearings Sales Connectin
Slide 35: China growth story
Automotive China China growth story Highlights Sales China in €m CAGR +13% Partner of local big players SAIC and HASCO (50/50 1,149 1,051 WFOEs 972 1,003 joint ventures) 871 934 681 Biggest casting capacities in China – technology leader 528 401 JVs (100%) Regulation (China 6) – provides sub
Slide 36: Defence: Managing the super cycle
DEFENCE Managing the “super cycle” Rheinmetall AG - Corporate Presentation May 2021 36
Slide 37: Defence Leading supplier with an increasing international presence
Defence Leading supplier with an increasing international presence Key Figures 2020 Sales by division* Sales by region Order backlog by region Row Row Sales: €3.7bn Weapon and Asia / ME Asia / ME Germany 1% Ammunition 16% 5% North America 18% Vehicle 30% North America 4% 2% 13% Op. result: €414m Sys
Slide 38: Defence Leading technology and market position
Defence Leading technology and market position Sales driver Structure of Corporate Segments Key Competitor Differentiator Increasing demand Vehicle Systems Vehicle Systems Reputation as trustful and for security Tactical Vehicles General Dynamics, reliable company Logistic Vehicles BAE, KNDS
Slide 39: Defence Managing the super cycle
Defence Managing the super cycle Demand for next generation 1990 Upscaling of systems forces and Downscaling Inflection modernization Return to treaty of forces and point and territorial armament NATO Out of area defence missions 2% target 2014 Annexation committment Crimea Rheinmetall AG - Corporat
Slide 40: Successful internationalization provides diverse sources of growth
Defence super cycle Successful internationalization provides diverse sources of growth Our home markets Germany Australia United Eastern Kingdom Europe Largest customer Established „home JV with BAE serves Modernization to Budget increase: market“ „home market“ NATO standards Commitment to
Slide 41: Defence tender overview
Defence tender overview High demand could lead to promising super cycle UK Eastern Europe MIV Boxer Lithuania: Boxer Challenger Poland: Leopard II Hungary: Leopard, Howitzer, France Lynx, Trucks IFV(wheeled) MGCS Czech Rep: IFV (tracked) Germany Slovakia: IFV USA Trucks Bulgaria: IFV (wheeled) Ammun
Slide 42: NATO commitment key driver for German demand
German defence NATO commitment key driver for German demand Lead role in Very High Readiness Joint Task Force ( VJTF) Bundeswehr ‘19 ‘23 ‘27 ‘31 ’32+ 2016 White paper 04/2018 VJTF´23 1x Division 3x Division 3x Division Concept VJTF´19 (1 Brigade) (3x Brigade) (8x Brigade) (10x Brigade) Bundeswehr 09
Slide 43: Investment expenses and Rheinmetall-share - budgets become sizeable
German defence budget Investment expenses and Rheinmetall-share - budgets become sizeable in €m 9253 8908 8263 Drivers for budget increase: More personnel, return to ~200.000 soldiers 6063 5894 More equipment (100% equipment 5327 5323 level) 4890 More finance, investive share increased by 14%
Slide 44: Additional structural demand of German armed forces
German Defence Additional structural demand of German armed forces Vehicles Fox Boxer Trucks Puma Leopard 2 (>500 vehicles) (~150 vehicles) (>10.000 vehicles) (~250 vehicles) (>200 vehicles) Programs and ammunition NNBS TLVS/Next Gen. Patriot DLBO TEN Ammunition Military Camps (Short range air defen
Slide 45: Australia: Successful establishment of a new home market
Australia Successful establishment of a new “home market” 2020 MilVehCoE Military Vehicle 2018 Center of Excellence Land 17: 155mm Munition Framework Contract: 2017 EUR 60m p.a. Supashock 2018-2023 49% Rheinmetall „Brain-Trust“ 2022/2023 T 2017 LYNX 2018 Land 400 Phase 3 JV Rheinmetall NIOA
Slide 46: United Kingdom - Joint Venture with BAE
United Kingdom - Joint Venture with BAE Creating a new “home market” and strengthening our position LEGACY BUSINESS EXPANSION OF PRODUCT PORTFOLIO BAE UK business Future Armoured engineering vehicles and Boxer Mechanized Infantry Vehicle (MIV) bridge-laying tanks - 500 vehicles @ € 1.4bn + A
Slide 47: System house for land based operations
System house for land based operations Integrating components to systems VJTF System-of-Systems System house Systems Armored Infantryman Puma Gladius Platforms Key Components Lance turret Protection Ammunition Laser opto-sensoric Rheinmetall AG - Corporate Presentation May 2021 47
Slide 48: Financials
FINANCIALS Rheinmetall AG - Corporate Presentation May 2021 48
Slide 49: Q1 2021 Group Highlights
Q1 2021 Group Highlights Sales recovery and continued cost discipline drove profitability Strong recovery of LV markets led by Asia Macro Supply chain issues on price and availability emerged Sales increased to €1.405m (reported +3.5%, FX adjusted +5.1%) Operating Result rose by €53m to €87m
Slide 50: Q1 2021 Group Highlights
Q1 2021 Group Highlights Rheinmetall joined forces with Environmentally friendly Electromotor housings for L3Harris in the US technology for plug-in hybrids international automaker in China L3Harris Technologies joined Innovative fuel tank isolation Double-digit sized order value of “Team LYNX
Slide 51: Q1 2021 Group Highlights: Order profile
Q1 2021 Group Highlights: Order profile Increased backlog and higher share of alternative powertrain business Order Intake 1 Order Backlog Profile 1 Booked Business 2 in €m in €bn in €m Backlog Alternative powertrain share in % Shadow backlog 3 +28.7% +41.5% ~3,500 890 +3.5% 25% 1,172 1,213 ~2,000 6
Slide 52: Q1 2021 Key financial data
Q1 2021 Group Highlights: Key financial data Earnings per share soar due to strong operational performance Sales Operating result and margin Earnings per share in €m in €m in € +3.5% +157.0% 280.0% 1,358 1,405 87 70 -23 -2 +5.1% -1.7% 55 6.2% 1.14 34 +162.4% -5.4% 2.5% 0.30 Q1 Operational FX Q1 Q1 O
Slide 53: Q1 2021 Key financial data: cash flow
Q1 2021 Group Highlights: Key financial data Cash flow rose on earnings growth and working capital improvement Operating Free Cash flow Highlights / Comments in €m +131 -57 Strong earnings improvement 5 Lower D&A includes mid-single digit effect from 15 impairment -188 Lower CTA funding in Q1
Slide 54: Equity ratio is approaching target range
Q1 2021 Group Highlights Equity ratio is approaching target range Equity and Equity ratio Gross debt and maturity profile in €m and % In €m Equity ratio Total equity Ʃ 1,010 252 Leasing & Other 30.3 28.2 29.7 106 Bank loans 2021 2022 2023 2024 2025 2026ff. 402 Promissory 2,241 2,221 28 45 2,053 note
Slide 55: Q1 2021 Division Highlights: Project ramp-down impacted performance
Q1 2021 Division Highlights Project ramp-down impacted performance as expected Q1 In €m 2020 2021 ∆ Order intake 136 178 +30.4% Sales 446 409 -8.4% Operating result 35 25 -29.2% Operating margin 7.9% 6.1% -1.8pp EBIT 35 25 -29.2% Operating FCF -21 79 100 Sales Operating Margin 12 Order intake on s
Slide 56: Q1 2021 Division Highlights: Best starting quarter ever
Q1 2021 Division Highlights Best starting quarter ever Q1 In €m 2020 2021 ∆ Order intake 328 228 -30.4% Sales 167 221 +32.1% Operating result -16 18 +33 Operating margin -9.3% 8.0% +17.3pp EBIT -16 18 +33 Operating FCF -72 -56 +21.7% Sales Operating Margin 30 Order intake without larger individual
Slide 57: Q1 2021 Division Highlights: Solid first quarter
Q1 2021 Division Highlights Solid first quarter Q1 In €m 2020 2021 ∆ Order intake 324 218 -32.6% Sales 174 167 -4.0% Operating result 10 10 -1% Operating margin 6.0% 6.2% +0.2pp EBIT 10 10 -1% Operating FCF -43 -90 -106.7% Sales Operating Margin 12 Order intake Q1 2020 included large air defence o
Slide 58: Q1 2021 Division Highlights: Sales and margin recovery continues
Q1 2021 Division Highlights Sales and margin recovery continues Q1 In €m 2020 2021 ∆ Booked Business 471 656 +39.2% Sales 348 372 +7.1% Operating result 9 28 +194.2% Operating margin 2.7% 7.5% +4.8pp EBIT 9 28 +194.2% Operating FCF -33 -38 -16.9% Sales Operating Margin 10 Booked business successfu
Slide 59: Q1 2021 Division Highlights: Demand driven recovery
Q1 2021 Division Highlights Demand driven recovery Q1 In €m 2020 2021 ∆ Booked Business 137 173 +26.6% Sales 140 160 +14.1% Operating result 7 14 +103.9% Operating margin 4.9% 8.8% +3.9pp EBIT 7 14 +103.9% Operating FCF -1 -9 -8 Sales Operating Margin 10 Booked business increase underpins improved
Slide 60: Q1 2021 Division Highlights: Sales growth held back by FX
Q1 2021 Division Highlights Sales growth held back by adverse FX effects Q1 In €m 2020 2021 ∆ Booked Business 21 60 +191.8% Sales 149 140 -6.4% Operating result -6 3 +143.9% Operating margin -4.1% 1.9% +6.1pp EBIT -6 3 +143.9% Operating FCF -11 2 +13 Sales Operating Margin 10 Booked business incre
Slide 61: Strong recovery of the truck and aftermarket business
Q1 2021 Key end market developments Strong recovery of the truck and aftermarket business LV / Non-LV sales split Sales by key end markets in €m in €m Delta +4.6% +19.0% absolut in % 647 249 Diesel -3 -2.2% 618 Otto -13 -5.9% 148 210 Other LV +6 +19.0% 152 103 LV: LV Geschäft -11 -2.7% LV: 397 82 40
Slide 62: Q1 2021 China JV: China back on track
Q1 2021 China JV China back on track Sales* EBIT* in €m in €m +60.1% 264 -4 Joint Venture 41 Wholly owned foreign enterprise 103 +€21m 165 16 21 0 1 223 145 15 21 1 -6 -5 Q1 Operational FX Q1 Q1 Operational FX Q1 2020 2021 2020 2021 * JV sales and EBIT presented at 100% Rheinmetall AG - Corporate Pr
Slide 63: Market update
Market update Defence budget update IHS Forecast LV production volumes Latest budget updates for 2022 in 2020 2021 Strong annual recovery, but downward revision of Q2 key home markets all favorable 2022 due to chip shortage +11.9% Quarter Annual -6.1% 74.6 84.7 84.6 84.1 83.5 12.6 21.2 21.1 20.6
Slide 64: Outlook: Application of IFRS 5 as of Q2 2021
Outlook Application of IFRS 5 as of Q2 2021 The status of the disposal process for the piston business has progressed sufficiently in order to qualify the business in accordance with IFRS 5 as discontinued operations Application as of Q2 2021 Presentation of Pistons as discontinued operations
Slide 65: Outlook 2021
OUTLOOK 2021 Rheinmetall AG - Corporate Presentation May 2021 65
Slide 66: Favorable business environment for 2021
Outlook Favorable business environment for 2021 +6% • Global economies return to growth mode Global GDP Growth1 +13% • LV production volume recovery Global LV volumes2 +6% • Growing defence budgets in our Home markets Home markets budget growth3 1 OECD, March interim Economic Outlook Forecasts March
Slide 67: Major programs start contributing from 2022 onwards
Outlook Major programs start contributing from 2022 onwards 1. Lot Puma (Ger) Challenger (UK) MIV (UK) Lynx (HU) Ammunition (HU) Puma S1 upgrade (Ger) L400 Ph2 (AU) 2019 2020 2021 2022 2023 2024 2025 Under contract Order potential Rheinmetall AG - Corporate Presentation May 2021 67
Slide 68: FY Guidance unchanged, updated for IFRS 5 accounting
Outlook FY Guidance unchanged, updated for IFRS 5 accounting! Large vehicle orders from the UK and Germany expected Recovery of global LV markets supportive, but still uncertainties due Q2 trading to supply issues update Group sales significantly above PY level Operating margin expansion to
Slide 69: Rheinmetall Guidance 2021 by division in the new reporting structure
Outlook Rheinmetall Guidance 2021 by division in the new reporting structure 2020 Outlook 2021e 1,2 Proforma Vehicles Systems Sales €1,846m Slightly improved sales Margin 8.1% On previous year margin level Weapon and Sales €1,199m Notably improved sales Ammunition Margin 15.4% Slightly above previou
Slide 70: Select key data: Outlook 2021
Select key data: Outlook 2021 Rheinmetall Group 2020 2021 Holding cost (new) -€21m (-€43m) €50m-€60m Tax rate Adjusted 26% Comparable level Interest result -€33m ~-€40m Capex (excl. IFRS 16) 5.4% (3.7%) around 6% D&A (excl. impairment) 9.5% (4.6%) 4% - 5% R&D (self-funded) 6.3% (5.1%) Comparable lev
Slide 71: Appendix
Appendix Rheinmetall AG - Corporate Presentation May 2021 71
Slide 72: Sustainability: Path to CO2 neutrality already started
Sustainability Path to CO2 neutrality already started 2023 Report according to 2040 Carbon Disclosure CO² neutral Project Standards 2020 - 2040 2021 Milestone plan Reporting CO2 neutrality 2020 analogous to 3 years Report according to UN Global increments Global Reporting Compact Initiative 2022 201
Slide 73: ESG forms part of our corporate strategy
FY 2020 Group: ESG ESG forms part of our corporate strategy Environment Social Governance 2035: CO² neutral* Responsible corporate Strict compliance citizen organization • Over next 2 years reduction of • Employee health & safety • Robust governance with strict water consumption use by 10% • Transpa
Slide 74: Our capital allocation policy is geared towards further growth
Our capital allocation policy is geared towards further growth Funding of growth (organic and M&A) 9.4% Dividend to shareholders (Payout ratio 30-35%) Q3 ‘19 level Improvement of pension funding via CTA (target 50-60%) level Rheinmetall AG - Corporate Presentation May 2021 74
Slide 75: Group 2016 – 2020: Key figures (as reported)
Group 2016 – 2020: Key figures (as reported) in €m 2016 2017 2018 2019 2020 Balance Sheet Total assets 6.150 6.101 6.759 7.415 7.267 Shareholder's equity 1.781 1.870 2.173 2.272 2.053 Equity ratio (in %) 29,0 30,7 32,1 30,6 28,2 Pension liabilities 1.186 1.080 972 1.169 1.177 Net financial debt 19 2
Slide 76: Segments 2016 – 2020: Key figures
Segments 2016 – 2020: Key figures Automotive Defence 2016 2017 2018 2019 2020 in €m 2016 2017 2018 2019 2020 2.670 2.922 2.888 2.705 2.130 Order intake 3.050 2.963 5.565 5.186 6.387 458 520 478 447 426 Order backlog (Dec. 31) 6.656 6.416 8.577 10.399 12.942 2.656 2.861 2.930 2.736 2.151 Sales 2.946
Slide 77: Continuing ROCE improvement
Continuing ROCE improvement ROCE in % 25 22,2 20,2 19,6 20 19,0 18,8 18,7 16,7 17,1 15,9 15,4 15 13,4 13,1 12,3 11,8 10,7 10,6 9,8 10 10% 6,1 Group 4,7 3,9 5 2,7 0,3 0 -4,6 -25 -23,1 2013 2014 2015 2016 2017 2018 2019 2020 Group Defence Automotive Rheinmetall AG - Corporate Presentation May 2021 7
Slide 78: Next events and IR contacts
Next events and IR contacts Next Events IR Contacts Goldman Sachs, European Small and Mid Cap Conference 07 May 2021 Dirk Winkels UBS, Pan European Small and Mid Cap Conference 12 May 2021 Head of Investor Relations Berenberg, US Conference 20 May 2021 Tel: +49-211 473-4749 All investor meetings wil
Slide 79: Disclaimer
Disclaimer This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to Rheinmetall’s financial condition, results of operations and businesses and certain of Rheinmetall’s plans and objectives. These forward-lo