Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (September 2013)
22 slides from Rheinmetall's investor day presentation, Sep 13, 2013
Slide 1: Capital Markets Day 2013 – International Partner for Security and Mobility
Capital Markets Day 2013 International Partner for Security and Mobility Armin Papperger © Rheinmetall 2013 Rheinmetall Group Content New slogan Transition year 2013: Why we had to adjust the guidance Rheinmetall 2015: Internationalization Rheinmetall 2015: Growth, products and innovations Objective
Slide 2: Security and Mobility
Rheinmetall Group SECURITY MOBILITY Basic need of mankind Megatrend in a connected world Basis for economic development and wealth Precondition for personal freedom and Technologies for security in areas of conflicts trade over distances Protection for soldiers in action Fast and flexible response t
Slide 3: Transition year 2013: Why we had to adjust the guidance
Rheinmetall Group Transition year 2013 A challenging market environment for both corporate sectors 2012 with weaker earnings generated by Automotive and Defence Challenging market environment in 2013: Budget cuts for Defence, weaker economic outlook for Automotive in Europe 2013 a transition year: M
Slide 4: Weapon and Ammunition business in Division Combat Systems
Rheinmetall Defence Division Combat Systems Share of the weapon and ammunition business Combat Propulsion Combat Platforms Infantry Protection Systems International Systems Ammunition Platforms Rheinmetall 40mm ammunition Propulsion military Softkill Denel Munitions Weapons RWM Italia SAFE (Special
Slide 5: Rheinmetall 2015: Cornerstones and Internationalization
Rheinmetall Group “Rheinmetall 2015” As a reminder: Cornerstones of the strategy program Internationalization Extension of business operations outside Europe Growth, products From 2015 organic sales revenue growth of 3-5% (CAGR) and innovations in normal economic cycle Cost efficiency Restructuring
Slide 6: Internationalization – Automotive: Growth in Emerging Markets
Rheinmetall Automotive Internationalization – Automotive Robust growth in the Emerging Markets Change in light vehicle production 2015 vs. 2012 in % China + 35% Western Europe + 2% USA + 13% Mexico + 21% India + 35% Brazil + 23% Source: IHS Automotive Capital Markets Day 12/13 September 2013 © Rhein
Slide 7: Internationalization – Automotive: Mexico and Mechatronics orders
Rheinmetall Automotive Internationalization – Automotive Extension of the production facility in Mexico 2006: Start in Mexico by acquisition of an established pistons producer Three companies (bearings, pistons, pumps) Extension of the gasoline and diesel pistons in one location production for passe
Slide 8: Internationalization – Automotive Next steps; Defence budgets
Rheinmetall Automotive Internationalization – Automotive Next steps Automotive China: Establishment of large-bore piston factory; production launch Pierburg China Mexico: Ramp-up of India: Ramp-up of Pierburg/ Mechatronics production Pierburg pumps; optimized location for plain bearings Russia: Sub-
Slide 9: Internationalization – Defence: Hub strategy and order backlog
Rheinmetall Defence Internationalization – Defence Developing new markets: Continuation of successful hub strategy Nordic region Russian Federation Europe North America MENA Gulf region Target: Sub-Saharan Hub South America Africa Australia Capital Markets Day 12/13 September 2013 © Rheinmetall 2013
Slide 10: Internationalization – Defence Next steps
Rheinmetall Defence Internationalization – Defence Next steps Defence Gulf Cooperation Council (GCC) region: Extension of local presence Australia: Algeria: Establishment of Establishment of hub, Fuchs (Fox) production, strengthening Rheinmetall entry into local joint venture, Defence Australia, suc
Slide 11: Growth, products and innovations – Automotive: Powertrain trends
Rheinmetall Automotive Growth, products and innovations – Automotive Market trends in powertrain technology Growing importance of the powertrain technology and rising market volume expected … … driven by globally enhanced emission standards (NOX) and legal regulations (CO2) connected with penalties
Slide 12: Automotive: Convert innovation pipeline into profitable growth
Rheinmetall Automotive Growth, products and innovations – Automotive Convert innovation pipeline into profitable growth Extension of product expertise in the field of powertrain technology Realization of growth potential of mechatronics products, especially in the field of turbo-charged petrol engin
Slide 13: Truck exhaust recirculation system; Steel pistons for passenger cars
Rheinmetall Automotive Truck exhaust recirculation system Optimizing engine emissions of future utility vehicles Precise setting for exhaust gas enables a substantial reduction of nitrogen oxide (NOx) emissions from engines Robust, contactless actuation systems with integrated control electronics (S
Slide 14: Range extenders; Market trends in Land Systems
Rheinmetall Automotive Range extenders Bridging technology towards pure electromobility Range extensions for electrically power vehicles to accustomed distances Package-optimized engine and generator concept Outstanding acoustics and low in vibration Since January 2013 in successful test runs Capita
Slide 15: Defence: Convert innovation pipeline into profitable growth
Rheinmetall Defence Growth, products and innovations – Defence Convert innovation pipeline into profitable growth Extension of the system- and service business Ensuring a comprehensive innovation pipeline Strengthening competencies in large-scale project management Capital Markets Day 12/13 Septembe
Slide 16: Further development of the HX model range; Future Soldier System
Rheinmetall Defence Further development of the HX model range The maximum in protection and mobility New front axle for cabin to provide greater level of protection In combination with ADS, the first truck protected against RPG attacks Roughly 1,000 protected cabins included in truck order from Aust
Slide 17: Rheinmetall machine guns; Growth by takeovers and investments
Rheinmetall Defence Rheinmetall machine guns Perfect accuracy and impact, caliber 12.5/7.62 RMG 7.62 Large distances due to improved performance ammunition Low weight due to high-performance materials Ideal arms for remote control weapon stations Capital Markets Day 12/13 September 2013 © Rheinmetal
Slide 18: Cost efficiency: what initiatives cost and accomplish
Rheinmetall Group “Rheinmetall 2015” – Cost efficiency What cost initiatives cost, and what they will accomplish Defence Defence €40-50 million Automotive €40-50 million €35 million Automotive €20-25 million Capital Markets Day 12/13 September 2013 © Rheinmetall 2013 35
Slide 19: Objectives for 2015: Growth and earnings
Rheinmetall Group “Rheinmetall 2015” – Objectives for 2015 Growth and earnings Organic growth of 3-5% p.a. from 2015 in both segments Assuming a stable market environment, Rheinmetall Automotive envisages an EBIT margin of 8% from 2015 After the successful termination of restructuring, Rheinmetall D
Slide 20: Objectives for 2015: Cash flow and finance
Rheinmetall Group “Rheinmetall 2015” – Objectives for 2015 Cash flow and finance We concentrate on the successful organic development of both segments and on the improvement of operating free cash flow We aim to maintain our investment grade rating We will seize opportunities for focused acquisition
Slide 21: Summary
Rheinmetall Group Summary Great importance of further internationalization in both sectors “Rheinmetall 2015” gives the right answer to the ongoing market changes Technology leadership and product innovations are decisive growth factors Rheinmetall is the international partner for security and mobil
Slide 22: Financial Diary and Disclaimer
Financial Diary November 8, 2013 Q3 2013 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