Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2022)

17 slides from Rheinmetall's investor day presentation, Nov 16, 2022

  1. Slide 1: Financials of the Supercycle 2.0

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  2. Slide 2: Agenda

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 AGENDA WHAT HAPPENED SINCE THE LAST CMD? 01 03 OPPORTUNITIES & CHALLENGES FINANCIALS OF THE SUPERCYCLE 2.0 02 04 MID-TERM GUIDANCE © Rheinmetall AG I November 2022 2

  3. Slide 3: What happened since our last CMD?

    Rheinmetall - Capital Markets Day 2022 What happened since our last CMD? 11/2019 Unterlüss Since 2020 Worldwide Corona Pandemic 01/2021 Storm on Capitol Hill Summer 2021 Withdrawal of international troops from Afghanistan Since Q4 2021 Semiconductor crisis/ inflation/ commodity prices 12/2021 “Ampel

  4. Slide 4: Profitable growth at double digit speed

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Profitable growth at double digit speed Sales and operating margin (in €bn and in %): 8.3% 10.5% >11% ~13% CAGR ~17% 10-11  Project pipeline is filled and diversified  Strong sales increase over the mid-term ~6.5 5.4 5.7  Mar

  5. Slide 5: Growth needs to be organized

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Growth needs to be organized Sales Consolidation (in €m / in % of unconsolidated Sales) 5.4% 5.9% ~7% ~8% Increased consolidation driven by ~900 growing structures ~500 309 356  Sales consolidation reflects new growth dynamics

  6. Slide 6: Performance already on a strong level

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Performance already on a strong level . . . Operating result by Division (in €m, in %) 217 Operating Margin Rheinmetall 99 2021 173 10.5% 17,6% 103 51 ~10 % 10,6% Minimum 9,2% 7,8% 7,8% profitability hurdle W+A ES VS S+A M+T Sal

  7. Slide 7: ... but with a lot of potential until 2025 target

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 … but with a lot of potential until 2025 Operating result by Division (in €m, in %) Operating Margin Target 2025 target ~13% ~10 % >20% 11-12% 10-12% Minimum ~10% >10% profitability hurdle W+A ES VS S+A M+T Sales ~2.5bn 1.5-2.0b

  8. Slide 8: Impressive shareholder return

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Impressive shareholder return Adj. EPS, DPS and Payout ratio (in €, in %) 30-35% 35-40% Payout ratio Payout ratio 34.0% 36.5%  EPS and DPS expected to double  Payout ratio likely to grow within current corridor 6,72 5,93 3,30

  9. Slide 9: Peak capex to support double digit growth

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Peak capex to support double digit growth Germany UK RBSL RHM Hungary Australia; MilVehCoe  IT structure and div.  Mainly modernization  New Lynx production  Production expansion Operational modernization  Capex 2022- 2025

  10. Slide 10: Strong operating Free Cashflow expected to improve

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Strong operating Free Cashflow expected to improve 2 year rolling OFCF (Ratio of Sales in %) oFCF to sales target 2-4% 3-5% 4-6% 5,7% Cash margin to improve further 4,7%  Improved profitability  Upgraded payment terms  Normal

  11. Slide 11: Rock-solid balance sheet with financial flexibility for growth

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Rock-solid balance sheet with financial flexibility for growth Equity Gross debt and maturity profile* (in €m; in % of Total Assets) (in €m) Ʃ 1,154 2023 2024 2025 2026ff. 28.3% 33.9% 35.7% 30%-35% 221 Leasing & Other 118 Commer

  12. Slide 12: Acquisition Financials: Valuation and Financing

    Rheinmetall - Capital Markets Day 2022 Acquisition Financials High growth, accretive margin and ready capacities support premium valuation  Enterprise value of around €1.2bn  Valuation of ~10x EV/EBITDA for FY 2023 Valuation  Company’s total capacity offers scope for potential annual sales of €70

  13. Slide 13: Generating value for shareholders with clear capital allocation priorities

    Rheinmetall - Capital Markets Day 2022 Financials of the Supercycle 2.0 Generating value for shareholders with clear capital allocation priorities Strategic priorities Funding of organic Strategic M&A  Sustainable financing of growth growth  Strong balance-sheet Return  Maintain investment grade

  14. Slide 14: Great opportunities ahead and challenges addressed

    Rheinmetall - Capital Markets Day 2022 Great opportunities ahead and challenges adressed Opportunities Worldwide political turning Supply chains under control points Modernizing Germany/NATO Raw material availability secured countries and prices hedged Market recovery & Rheinmetall remains an transf

  15. Slide 15: Our new Financial Targets 2025 are...

    Rheinmetall - Capital Markets Day 2022 Our new Financial Targets 2025 are… ATTRACTIVE GROWTH PROFILE Sales target 2025 10-11 €bn HIGHER PROFITABILITY Operating margin target 2025 ~13% CASH GENERATION 4-6% Cashflow to sales target 2025 © Rheinmetall AG I November 2022 15

  16. Slide 16: Finally, one little thing... It's time to say goodbye

    Rheinmetall - Capital Markets Day 2022 Finally, one little thing… It‘s time to say goodbye….. Rheinmetall: 1982-2022 © Rheinmetall AG I November 2022 22 16

  17. Slide 17: 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

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