Rheinmetall Ag · XETR:RHM
Rheinmetall — Q2 2018 Earnings Presentation
79 slides from Rheinmetall's earnings presentation, September 2018
Slide 1: Rheinmetall AG Corporate Presentation Q2 2018
Rheinmetall AG Corporate Presentation Q2 2018 Düsseldorf, September 2018
Slide 2: Rheinmetall Group: Meeting demand for mobility and security
Rheinmetall Group Rheinmetall Meeting demand for mobility and security Sales €5,896m Key Op. result €400m Strategy Organic growth Performance Order backlog €6,936m roadmap International expansion Indicators Operating FCF EPS €276m €5.24 2017 Leading by innovations Targeted acquisitions DPS €1.70 AUT
Slide 3: More than 100 production sites and offices on all continents
Rheinmetall Group More than 100 production sites and offices on all continents Germany UK Defence Russia USA Netherlands Norway Singapore Sites Canada Switzerland Sweden South Saudi Arabia Malaysia Mexico Austria Poland Africa UAE Australia Italy USA Mexico Japan China Germany India France Spain Aut
Slide 4: Q2 2018 Group highlights
Rheinmetall Group Q2 2018 Group highlights Rheinmetall with robust Q2 performance Order backlog Sales Operating margin EPS €7bn stable €1.5bn +4.7% 7.2% +1.4pp €1.24 +23% CER Order backlog remains stable above €7bn Sales growth of 4.7% at constant exchange rates (CER) to €1,493m (reported 2.3%) Oper
Slide 5: Q2 2018 Group: Strong operational delivery – persisting FX headwinds
Rheinmetall Group Q2 2018 Group Strong operational delivery – persisting FX headwinds Sales Operating result in €m Earnings per share in €m Operating margin in % in € 22.8% 1.24 +4.7% +31.0% 107 -3 1.01 -34 26 1,493 84 68 -2.4% -3.6% 1,459 7.2% +27.4% +2.3% 5.8% Q2 Operational FX Q2 Q2 Operational F
Slide 6: OFCF development constrained mainly by working capital changes
Rheinmetall Group Q2 2018 Group OFCF development constrained mainly by working capital changes Operating free cash flow bridge Composition of delta working capital and others in €m in €m as of Q2 2018 vs. Q2 2017 4 Other 36 Accounts payables Automotive 19 14 Key drivers: Higher increase unadjusted I
Slide 7: Working capital changes reflected in net debt development
Rheinmetall Group Q2 2018 Group Working capital changes reflected in net debt development Net debt Equity ratio in €m in % of total assets Restated for IFRS 16 leasing liabilities Restated for leasing effect 230 €158 m IFRS 15/16 liabilities and effect cost to obtain contract 72 31.6% 31.2% 31.0% un
Slide 8: Mid-term outlook Rheinmetall Automotive
Rheinmetall Group Mid-term outlook Rheinmetall Automotive Drivers for structural earnings improvement Automotive targets Sales in Margin €bn 10% Increase content per car 3 Approx. 8.5% op. margin 8% Gain more powertrain neutrality Further develop product portfolio by entering new 2 6% markets, e.g.
Slide 9: Mid-term outlook Rheinmetall Defence
Rheinmetall Group Mid-term outlook Rheinmetall Defence Drivers for profitable growth intact Defence targets Sales Sales 2017-2020: in €bn ~10% CAGR Margin 4 8% Markets at the dawn of a long-term growth trend Increasing margins due to the lesser impact of legacy 6-7% op. margin 3 6% contracts Potenti
Slide 10: Guidance FY 2018
Rheinmetall Group Guidance FY 2018 Defence guidance revised to lower end of growth and higher end of margin brackets Sales Operating margin 2017 2018e 2017 2018e Growth y/y in % Reported growth y/y in % in % in % 5.2 ~8 6.8 ~7.0 Group (before: 8 – 9) Automotive 7.7 3-4 8.7 ~8.5 (IHS 2.2%) (IHS 2.1%)
Slide 11: Estimates: Selected key data
Rheinmetall Group Estimates Selected key data Rheinmetall Group In % of Automotive Defence sales 2017 2018 2017 2017 Holding cost €23m ~€30m Capex €154m ~5.5 - 6.0% €89m ~3.5 - 4.5% Tax rate 27% <30% D&A ~5.5% ~3 - 3.5% Interest expense €48m Previous year´s level R&D €151m ~5 - 5.5% €73m ~2 - 2.5% R
Slide 12: Automotive Q2 2018
Rheinmetall Automotive AUTOMOTIVE Q2 2018 © Rheinmetall AG / Corporate Presentation September 2018 12
Slide 13: Q2 2018 Highlights: Automotive
Rheinmetall Automotive Q2 2018 Q2 2018 Highlights: Automotive Profitable growth in-line with global markets Quarterly sales and margin development Comments on quarterly performance Sales grew operationally by 3.6% (+1.6% reported) to €740m 728 712 751 740 684 High profitability maintained, supported
Slide 14: Q2 2018: Automotive – Profitability repeated on high operational level
Rheinmetall Automotive Q2 2018 Q2 2018: Automotive Profitability repeated on high operational level Sales Automotive Operating result Automotive Mechatronics in €m; growth in % / (FX adjusted) in €m Growth supported by demand for emission reduction products +1.6% Margin (+3.6%) +1.5% slowed by decli
Slide 15: Q2 2018: Automotive – German demand key driver for sales growth
Rheinmetall Automotive Q2 2018 Q2 2018: Automotive German demand key driver for sales growth Regional sales development Automotive Global LV-Production vs. Automotive sales in €m growth in % q-on-q (IHS July 2018) 1.6% 728 740 0.8% 0.8% 5.3% 5.2% 3.9 9.2% 9.5% 3.2% 3.6 3.5% 17.2% 16.1% RoW China Asi
Slide 16: Q2 2018: China
Rheinmetall Automotive Q2 2018 Q2 2018: China Profitable growth above local market development Sales in €m +9.8% 23 260 239 2 Sales increased by 9.8% to €260m (9.0% reported) 229 vs. a LV-market growth of 8.7% 210 +8.7% Favorable product mix development 29 31 Q2 2017 operational FX Q2 2018 EBIT rose
Slide 17: H2 2018 outlook: Automotive
Rheinmetall Automotive Q2 2018 H2 2018 outlook: Automotive Addressing market uncertainties – risks well managed Global tariffs Emission testing Europe Diesel Raw material Short-term: Long-term: Key raw No cancelation Good growth Diesel decline materials: Mechatronics of customer chance for 1. Alumin
Slide 18: Defence Q2 2018
DEFENCE Q2 2018 © Rheinmetall AG / Corporate Presentation September 2018 18
Slide 19: Q2 2018 Highlights: Defence
Rheinmetall Defence Q2 2018 Q2 2018 Highlights: Defence High leverage quarter Quarterly sales and margin development Comments on quarterly performance Order intake compared to high Q2 17, boosted by German orders 1,011 731 682 754 Sales operationally up 5.8% to €754m (3.1% reported), driven by 11.3
Slide 20: Q2 2018: Defence – Profitable growth and net-positive effect from project review
Rheinmetall Defence Q2 2018 Q2 2018: Defence Profitable growth and net-positive effect from project review Sales Defence Operating result Defence Weapon and Ammunition in €m; growth in % / (operational) in €m Expected lower level of sales due to absence of PY trading contract (€112m) +3.1% Substanti
Slide 21: Q2 2018: Defence – Order backlog remains on high level
Rheinmetall Defence Q2 2018 Q2 2018: Defence Order backlog remains on high level Order intake by division Order backlog profile in €m in €m Weapon and Ammunition change in % / (operational) Electronic Solutions -2.3%/ Vehicle Systems (-0.7%) 1,031 Consolidation -45% 6,661 6,617 ~1.800 ~2,000 ~2,700
Slide 22: Defence: order intake Q3 2018 – Australia signed Boxer contract
Rheinmetall Defence Q2 2018 Defence: order intake Q3 2018 Australia signed Boxer contract with Rheinmetall LAND 400 Phase 2 Order intake Q3 2018: €2.1 bn 211 vehicles, thereof 133 vehicles equipped with Lance-turret system Scheduled delivery 2019-26 © Rheinmetall AG / Corporate Presentation Septembe
Slide 23: Defence: order intake expected Q3 2018 – Australia truck contract
Rheinmetall Defence Q2 2018 Defence: order intake expected Q3 2018 Australia decided to expand the existing truck contract with Rheinmetall LAND 121 Phase 5b 1.000 trucks 800 modules Scheduled delivery 2019-24 © Rheinmetall AG / Corporate Presentation September 2018 23
Slide 24: Defence: Innovative capacity – Lynx KF41
Rheinmetall Defence Q2 2018 Defence: Innovative capacity Lynx KF41 presented at the Eurosatory in Paris June 2018 Current tenders: Australia Land 400 Phase 3 ~450 vehicles Lynx – Next Generation Combat Vehicle 100% Rheinmetall! Modular configuration Best in class mobility Czech Republic Unprecedente
Slide 25: Automotive
Rheinmetall Automotive AUTOMOTIVE © Rheinmetall AG / Corporate Presentation September 2018 25
Slide 26: Automotive with leading technology and market positions
Rheinmetall Automotive Automotive with leading technology and market positions Key Figures Structure Sales by region Sales by division Sales: €2.9bn RoW Hardparts Asia 4% Aftermarket Op. result: €247m 15% 12%-3% Pistons Large-bore Pistons 32% Hardparts 45% Europe Op. margin: 8.7% NAFTA 16% w/o Beari
Slide 27: Drivers for growth
Rheinmetall Automotive Drivers for growth Rising global fleet and regulatory restrictions are supporting our growth Light vehicle production grows Emission thresholds decrease Stricter emission testing million vehicles per year WLTP CO2 NOx Mainly EU! 151 in g/km in mg/km +2% 124 -24% -56% 112 102 7
Slide 28: E³ – Our portfolio addresses three basic drivers
Rheinmetall Automotive E³- Our portfolio addresses three basic drivers Mechatronics Hardparts Aftermarket Coolant pumps Emission Bearings Pistons Leverage Exhaust gas recirculation platform Coolant pumps Increase regional Efficiency presence Lightweight products Variable Valve train Coolant pumps Ap
Slide 29: FY 2017 Highlights: Automotive
Rheinmetall Automotive FY 2017 Highlights: Automotive Successful launch of innovative products Electronic vacuum pump Vapor pump Market introduction of new ICE products Electric throttle and control valve in synthetic materials Variable valve train Catering to the demand for lightweight parts Struct
Slide 30: Strategic goal to reduce ICE exposure
Rheinmetall Automotive Strategic goal to reduce ICE exposure Actual sales split Strategic sales split Combustion Engines Combustion Engines 67% LV 50% 13% Truck 40% LV 10% Truck E-Mobility ICE related: Electric Drive pistons Hybrid Drive 2017 engine blocks 2040 e.g.: EGRs E-engine housing non-ICE re
Slide 31: Overview Rheinmetall Automotive
Rheinmetall Automotive Overview Rheinmetall Automotive Legislation is driving the business Gain bigger share in NEV market 1 International market offer great Growth strategy outperforming 2 growth potentials Chinese market development E-Mob and Diesel impacts Build up strong local engineering / Pres
Slide 32: Rising global light vehicle production
Rheinmetall Automotive Rising global light vehicle production Light vehicle production 2017-2021 CAGR in % / in million units Europa** Germany NAFTA Asia* +1.1% +0.5% +0.8% +4.0% Japan +2.1% China Global -1.5% 104 NAFTA 95 17 +3.1% Europe 17 17 Germany 16 6 6 17 Asia 14 Japan 28 31 * without China a
Slide 33: Governments will continue to demand reduction of CO2 emissions
Rheinmetall Automotive Governments will continue to demand reduction of CO2 emissions CO2 emission in g/km India 113 122 117 Europe 95 97 2020 *Note that Japan has already exceeded its 2020 statutory target, as of 2013 Source: ICCT © Rheinmetall AG / Corporate Presentation September 2018 33
Slide 34: CO2 reduction with Automotive products – gasoline engine vehicle
Rheinmetall Automotive Efficiency CO2 - reduction with Automotive products – gasoline engine vehicle 130 g 95 g CO2/km CO2/km 2015 2020 -2 g CO2/km -2 g CO2/km Reference model -7 g CO2/km Lightweight design parts Electr. 1.4L 4-cylinder -3 g CO2/km Variable valve train EGR system TC DI gasoline engi
Slide 35: LV Diesel exposure limited; powertrain neutrality is the strategic target
Rheinmetall Automotive LV Diesel exposure limited; powertrain neutrality is the strategic target Combined global engine production forecast* Automotive sales distribution by engine type** 100 30 LV Non Diesel units 80 25 Core Diesel 20 60 LV Diesel share in % Others 15 7% 40 18% 10 Fuel 20 LV Diesel
Slide 36: Broad product range for alternative drive systems
Rheinmetall Automotive Broad product range for alternative drive systems Enlarging the traditional product portfolio for combustion engines … + … by products for hybrid and electric engines Solenoid valves Actuators Structural components Electric throttle bodies Engine bearings Battery boxes (as fro
Slide 37: E-mobility competence underlined by contracts and initiatives
Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions Contract volume for electric vehicles (EV)* Product Volume Contract duration (Ø) E-Taxi London Battery EV ~€300m 6 – 8 years Pump technology for pure electric taxis (Plugin) Hybrid EV ~€200m 4 –
Slide 38: Electrification and downsizing require more sophisticated products
Rheinmetall Automotive Electrification and downsizing require more sophisticated products Price factor (estimated) Coolant pump Exhaust gas recirculation Valve, cooler, bypass and Mechanical >6x Electrical Valve >3x bypass actuator Oil pump Piston Mechanical >3x Variable Aluminum >3x Steel © Rheinme
Slide 39: Automotive in China
Rheinmetall Automotive Automotive in China 50/50 joint ventures Wholly Foreign-Owned Enterprises JV subsidiary with HASCO (SAIC group) (100% Rheinmetall Automotive) Castings (KSHA) Pistons (KSSP) Castings (KPSNC) Pumps (PHP) Aftermarket Pierburg Large-bore pistons Pumps (PMP Ch.) 2014 1997 2001 2012
Slide 40: More than 40 locations with high focus on local needs
Rheinmetall Automotive Markets with different growth focus: More than 40 locations with high focus on local needs Germany USA Tamm Auburn Hills Berlin Greensburg Dormagen Greenville (Fountain Inn) Hartha Marinette Langenhagen Neckarsulm (Headquarter) Mexico Neuss Celaya Neuenstadt Papenburg Brazil C
Slide 41: Summary Automotive
Rheinmetall Automotive Summary Automotive Markets and Customers: Markets in better shape than anticipated, global LV production will grow by >2% Our global production and technology footprint will follow local needs Rheinmetall Automotive intends to outperform markets in future, too Performance and
Slide 42: Defence
DEFENCE © Rheinmetall AG / Corporate Presentation September 2018 42
Slide 43: Defence is a leading supplier with an increasing international presence
Rheinmetall Defence Defence is a leading supplier with an increasing international presence Key Figures Structure Sales by region Sales by division Sales: €3.0bn Weapon and Ammunition RoW Vehicle Systems Weapon and Protection Germany Op. result: €174m 26% -8% Weapon and Ammunition Systems 29% 32% Am
Slide 44: Strategic goals of Rheinmetall Defence
Rheinmetall Defence Strategic goals of Rheinmetall Defence Strategic goals Entering new markets Enlarging internationalization Strategic partnerships to gain Form partnerships with local access to new markets suppliers to provide local content Target markets close to traditional markets, e.g. public
Slide 45: Defence at the beginning of long-lasting market growth
Rheinmetall Defence Defence at the beginning of long-lasting market growth Rising awareness of military threats …. Changes in macro Investment Islamist Crimea Geopolitical environment… backlog Terror Annexation tensions Growing project portfolios and rising budgets Germany announced Franco-German NA
Slide 46: Expected defence budgets development 2017–2021
Rheinmetall Defence Defence at the beginning of long-lasting market growth …stimulates readiness to invest more in security Expected Defence budgets development 2017 – 2021 in % p.a. Europe Germany North America +3.5% +3.8% +1.0% MENA Asia +3.4% +4.9% Latin America Global Australia +3.8% +2.1% Globa
Slide 47: Germany: Drivers behind budget increase
Rheinmetall Defence Germany: Drivers behind budget increase “Turnarounds” in Germany Framework nation concept triggers standardization of Personnel: equipment Mid-term return to 220,000 soldiers Material: 100% equipment level and additional division Finance: Increase of defence budget 24% from 2016
Slide 48: German defence policy: Additional structural demand under discussion
Rheinmetall Defence German defence policy: Additional structural demand of German army under discussion Vehicles – mid-to-long term potential Fox (400 vehicles) Boxer (300-400 vehicles) Trucks (> 10.000 vehicles) Puma (~250 vehicles) Equipment and ammunition – multi billion programs NNBS (Short rang
Slide 49: Trend reversal en route with few NATO members complying with targets
Rheinmetall Defence Trend reversal en route with few NATO members complying with targets German defence expenditure* NATO expenditure as % share of GDP vs in €m 74 equipment share in defence expenditure in % CAGR +3.5% 55 +5.3% 48 35 Luxembourg Romania 42.9 42.9 43.9 43.9 Bulgaria * Lithuania 30 Uni
Slide 50: Vehicle portfolio highly competitive thanks to state-of-the-art technology
Rheinmetall Defence Vehicle portfolio highly competitive thanks to state-of-the-art technology Successful participation in domestic and international vehicle tenders Land 121 - AUS Puma - D Boxer – NL/D Trucks - D Large potential from multiple tenders (top projects only) Challenger upgrade Land 400
Slide 51: 2017 marked by important strategic partnerships
Rheinmetall Defence 2017 marked by important strategic partnerships Joint bid for MoTaKo /MoTIV Focus on cooperation regarding Complete solution consisting of the CH-53K project the successor system for the helicopters as well as further services in Scope German tactical air defence maintenance, rep
Slide 52: Army 4.0: Digitization of Land-based operations (D-LBO)
Rheinmetall Defence Army 4.0: Digitization of Land-based operations (D-LBO) will propel the German Army into the digital future JV-share and core capabilities Rheinmetall (74.9%): Rohde & Schwarz (25.1%): Command systems Communication system Cross-functional operator architecture, IP based solution
Slide 53: Army 4.0: D-LBO: What supports our ambition?
Rheinmetall Defence Army 4.0: D-LBO: What supports our ambition? Exclusive Rohde &Schwarz is the key partner partnership for all communication equipment Top competency: Long-term partnership for all kind of Vehicle upgrades system upgrades Integrated Our infantry fighting vehicles come battle manage
Slide 54: Lockheed/Rheinmetall: partnership to offer the full package
Rheinmetall Defence Lockheed /Rheinmetall: Lockheed Martin partners with Rheinmetall to offer the “full package” Strategic teaming agreement Rheinmetall teams up with Lockheed Sikorsky to introduce the CH-53K as the heavy lift helicopter for the Bundeswehr Tender scope and volume Rheinmetall contrib
Slide 55: Raytheon/Rheinmetall: System house approach for ground based air defence
Rheinmetall Defence Raytheon/Rheinmetall*: System house approach for ground based air defence Rheinmetall is a system provider for NNBS** and Raytheon‘s national partner for the modernization of Patriot is the only provider of supplier independent effector integration accompanies the lifetime servic
Slide 56: Defence industry in Europe
Rheinmetall Defence Defence industry in Europe Governmental shareholding restricts room for cross-border consolidation 49.9% Kongsberg Big common armament programs could be 50% Nammo Patria catalysts for further consolidation Saab Cobham BAE Systems Chemring Rheinmetall CH PL TUR RO Rheinmetall’s ap
Slide 57: Summary Defence: Growing with improved performance
Rheinmetall Defence Summary Defence: Growing with improved performance Growth Long-term growth trend fully intact Defence business growth returns to double digit %-rate Performance Profitability improved on product mix and higher leverage Lagging business in Electronic Solutions is stabilizing Outlo
Slide 58: Group Appendix
GROUP APPENDIX © Rheinmetall AG / Corporate Presentation September 2018 58
Slide 59: Management structure
Appendix: Rheinmetall Group Management structure Board of Directors (Group) Peter S. Krause Horst Binnig Armin Papperger Helmut P. Merch Human Resources Board Member CEO CFO Management Board Management Board (Automotive) (Defence) Armin Papperger CEO Horst Binnig Olaf Hedden Peter S. Krause Dr. Alex
Slide 60: Board remuneration based on three building blocks
Appendix: Rheinmetall Group Board remuneration based on three building blocks Annual target salary (100%) Fixum (60%) Performance-related variable remuneration (40%) Twelve equal portions of monthly Short term incentive Long-term incentive payments Fringe benefits: • KPI: EBT, ROCE (each 50%) • KPI:
Slide 61: ESG with high importance for Rheinmetall
Appendix: Rheinmetall Group ESG with high importance for Rheinmetall Environment Social Governance • Reduction of the ecological footprint • Clear statement against cluster munition • Transparency towards customer, • Decrease of energy needed • Promoting education and training investors and other st
Slide 62: Financial strength materially improved
Appendix: Rheinmetall Group Financial strength materially improved Drivers Equity and Equity ratio % EUR m 2.000 40 1.500 30 30% 31% 31% Confidence increased by delivery on our targets 1.000 27% 29% 20 23% Capitalizing on our restructuring efforts 500 10 0 0 Equity ratio further improved 2014 2015 2
Slide 63: Continuing ROCE improvement
Appendix: Rheinmetall Group Continuing ROCE improvement ROCE in % Pre-tax WACC 20% (2017): 19.0% 18.8% 18,7% 15% 16.7% 13,4% 12.3% 10.6% 10.5% Group 11,8% 10% 10.7% 9.8% 4.7% 5% 3.9% 6.1% 0.3% 0% -4.6% -5% 2013 2014 2015 2016 2017 Group Defence Automotive © Rheinmetall AG / Corporate Presentation Se
Slide 64: Stronger net cash position
Appendix: Rheinmetall Group Stronger net cash position Debt composition Maturity profile in €m in €m ∑ 851 168 Other & Leasing 2018 2019 2020 2021 2022 2023 2024ff. 133 Bank loans 28 300 Promissory notes 53 98 122 *€250 m EIB loan 250 EIB loan* (0.962% coupon) maturing Aug 2023 250 Q2 2018 Net finan
Slide 65: Group: Quarterly development
Appendix: Rheinmetall Group Group: Quarterly development Sales Operational results in €m in €m 1,722 169 1,459 1,493 1,366 1,260 1,011 114 107 731 754 97 682 509 84 44 24 46 47 728 684 712 751 740 67 63 65 68 57 -1 -1 -7 -6 -8 -13 -5 -5 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2017 Q3 2017 Q4 2017
Slide 66: Group: Free Cash Flow summary
Appendix: Rheinmetall Group Group: Free Cash Flow summary Q2 Q3 Q4 Q1 Q2 Δ Q2 in €m 2017 2017 2017 2018 2018 '17/'18 Group Net Income 51 43 130 27 65 14 Amortization / depreciation 55 59 70 64 91 36 Change in pension accruals -3 1 -8 -42 1 4 Cash Flow 103 103 192 49 157 54 Changes in working capital
Slide 67: Automotive: Quarterly development
Appendix: Rheinmetall Group Automotive: Quarterly development Sales by division Operational result by division in €m in €m 751 740 728 67 68 684 712 63 65 57 407 429 417 382 407 47 46 44 46 40 251 232 236 254 250 16 13 18 17 14 93 95 87 92 97 9 9 8 8 9 -23 -25 -18 -24 -24 -5 -5 -5 -5 -4 Q2 2017 Q3 2
Slide 68: Automotive: Free Cash Flow summary
Appendix: Rheinmetall Group Automotive: Free Cash Flow summary Q2 Q3 Q4 Q1 Q2 Δ Q2 in €m 2017 2017 2017 2018 2018 '17/'18 Net income 50 25 44 45 52 2 Amortization / depreciation 32 37 39 36 38 6 Change in pension accruals - - - -20 -1 -1 Cash Flow 82 62 83 61 89 7 Changes in working capital and othe
Slide 69: Defence: Quarterly development
Appendix: Rheinmetall Group Defence: Quarterly development Sales by division Operational result by division in €m in €m 114 1,011 44 46 77 431 754 731 682 23 249 28 19 305 248 24 509 247 5 139 197 12 165 141 6 126 25 23 14 13 11 370 423 375 337 297 -1 -1 -1 -7 -7 -19 -52 -101 -90 -53 -67 -1 Q2 2017
Slide 70: Defence: Free Cash flow summary
Appendix: Rheinmetall Group Defence: Free Cash flow summary Q2 Q3 Q4 Q1 Q2 Δ Q2 in €m 2017 2017 2017 2018 2018 '17/'18 Net income 8 32 76 -21 23 15 Amortization / depreciation 22 21 29 26 52 30 Change in pension accruals -6 2 -2 -2 2 8 Cash Flow 24 55 103 3 77 53 Changes in working capital and other
Slide 71: Group 2013–2017: Key figures
Appendix: Rheinmetall Group Group 2013 – 2017: Key figures In €m 2013 2014 2015 2016 2017 Balance sheet Total assets 4,866 5,271 5,730 6,150 6.186 Shareholder‘s equity 1,339 1,197 1,562 1,781 1,955 Equity ratio (in %) 27.5 22.7 27.3 29.0 31.6 Pension liabilities 891 1,121 1,128 1,186 1,080 Net finan
Slide 72: Segments 2012–2017: Key figures
Appendix: Rheinmetall Group Segments 2012 – 2017: Key figures AUTOMOTIVE DEFENCE 2013 2014 2015 2016 2017 in EUR million 2013 2014 2015 2016 2017 2,270 2,466 2,621 2,670 2,922 Order intake 3,339 2,812 2,693 3,050 2,963 392 416 445 459 520 Order backlog (Dec. 31) 6,050 6,516 6,422 6,656 6,416 2,262 2
Slide 73: Group Q2 2017/2018: Income statement
Appendix: Rheinmetall Group Group Q2 2017/2018: Income statement In €m In €m Income Statement Q2 2017 Q2 2018 Δ Q2 2017 Q2 2018 Δ Sales 1,459 1,493 34 34 40 6 Total operating performance 1,493 1,533 40 Net operating income (EBIT) 81 99 18 - 2 Net interest income - 13 - 11 2 Other operating income 36
Slide 74: Group H1 2017/2018: Cash flow statement
Appendix: Rheinmetall Group Group H1 2017/2018: Cash flow statement In €m Cash Flow Statement H1 2017 H1 2018 Δ H1 2017 H1 2018 Δ Net Income 79 92 13 Dividends paid out by Rheinmetall AG -62 -73 -11 Amortization, depreciation and impairment 112 155 43 Other profit distributions -9 -7 2 Dotation of C
Slide 75: Group 2017/2018: Balance Sheet
Appendix: Rheinmetall Group Group 2017/2018: Balance Sheet Balance Sheet In €m 31.12.2017 01.01.2018 30.06.2018 Δ 31.12.2017 01.01.2018 30.06.2018 Δ Non-current assets 2,712 2,939 2,920 -19 Equity 1,955 1,950 1,975 25 Goodwill 550 550 550 0 Share capital 112 112 112 0 Other intangible assets 229 229
Slide 76: Glossary
Appendix: Rheinmetall Group Glossary bn billions JV Joint Venture bp basis points LBP Large bore piston CAGR compounded average growth rate LV Light vehicle CER Constant Exchange Rates m million CTA Contractual trust agreement NEDC New European Driving Cycle D&A Depreciation & Amortization NEV New E
Slide 77: Next events and IR contacts
Next events and IR contacts Events 2018 IR Contacts Commerzbank Conference Frankfurt 29 August Franz-Bernd Reich Head of IR RS Portugal - Equinet Lisbon 3 September Tel: +49-211 473-4777 RS France Belgium – Soc Gen Brussels & Paris 12-13 September Email: franz-bernd.reich@rheinmetall.com RS Spain -
Slide 78: 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
Slide 79: © Rheinmetall AG / Corporate Presentation September 2018
© Rheinmetall AG / Corporate Presentation September 2018 79