Rheinmetall Ag · XETR:RHM

Rheinmetall — H1 2016 Earnings Presentation

24 slides from Rheinmetall's earnings presentation, Aug 4, 2016

  1. Slide 1: Conference Call H1 2016

    R H E I N M E TA L L A G T H E T EC H N O LO GY G RO U P FO R S EC U R I T Y A N D M O B I L I T Y Conference Call H1 2016 Düsseldorf | August 4, 2016 © RHEINMETALL AG 2016

  2. Slide 2: Highlights H1 2016

    Rheinmetall Group Highlights H1 2016 Increased sales, strong order backlog, earnings progressing Sales Increased by 9%, FX-adjusted by 10% Order backlog Further increase from EUR 7.1 billion to EUR 7.3 billion Earnings Up to EUR 103 million, margin raised from 3.3% to 4.0% Automotive Solid Q2 overco

  3. Slide 3: Key figures H1 2016

    Rheinmetall Group Key figures H1 2016 in EUR million H1 2015 H1 2016 ∆ H1 2016/ H1 2015 Sales 2,394 2,599 + 205 + 9% EBITDA 177 212 + 35 + 20% Operational earnings 79 103 + 24 + 30% EBIT (reported) 79 103 + 24 + 30% EBIT margin in % 3.3 4.0 + 0.7pp EBT 48 75 + 27 + 56% Group net income 34 53 +19 +56

  4. Slide 4: Key figures Q2 2016 per segment

    Rheinmetall Group Key figures Q2 2016 per segment Rheinmetall Group in EUR million Q2 2015 Q2 2016 ∆ Q2 2016 /2015 Sales 1.221 1.419 + 198 + 16% EBITDA 106 126 + 20 + 19% EBIT (reported) 57 72 + 15 + 26% EBIT margin in % 4.7 5.1 +0.4pp Automotive Sales 676 695 + 19 + 3% EBITDA 87 91 +4 + 5% EBIT (re

  5. Slide 5: Automotive

    © RH E I N M ETAL L A G | I n terim Rep ort H 1 2 0 1 6 | A u g u s t 4 , 2 0 1 6 5

  6. Slide 6: Automotive Highlights H1 2016

    Rheinmetall Automotive Highlights H1 2016 Automotive gaining momentum after a soft start into the year Growth in Q2 stabilizes H1 sales slightly above Sales previous year´s level Ramp-up of new products begin to show New orders positive topline impact Margin of 8,6% in Q2 reached again the Earnings

  7. Slide 7: Automotive Key figures H1 2016

    Rheinmetall Automotive Key figures H1 2016 in EUR million H1 2015 H1 2016 ∆ H1 2016 /2015 Order intake 1.320 1.304 - 16 - 1% Order backlog (June 30) 397 401 +4 +1% Sales 1.340 1.349 +9 +1% EBITDA 170 176 +6 + 4% EBIT 114 112 -2 - 2% EBIT margin in % 8.5 8.3 - 0.2pp Free cash flow from operations 15

  8. Slide 8: Sales growth in Mechatronics continues

    Rheinmetall Automotive Sales growth in Mechatronics continues Strong Q2 shift sales and earnings in H1 on previous year´s level Sales Automotive in EUR million Operational earnings Automotive in EUR million +1% 1,340 1,349 -2% 114 112 Reasons for earnings development 751 +26 777 Mechatronics 65 — St

  9. Slide 9: Automotive LV sales development

    Rheinmetall Automotive Automotive LV sales development H1 LV-sales above growth of global LV production Global LV production Sales Automotive LV/Non-LV in million units in EUR million 46,9 1,340 1,349 45,9 285 -8.4% 261 10,9 11,4 143 +2.8% 147 without 8,8 9,1 China: +0.9% Global: 11,3 11,1 +2.2% 912

  10. Slide 10: Defence

    © RH E I N M ETAL L A G | I n terim Rep ort H 1 2 0 1 6 | A u g u s t 4 , 2 0 1 6 10

  11. Slide 11: Defence Highlights H1 2016

    Rheinmetall Defence Highlights H1 2016 Strong performance in orders, sales and earnings Soared by roughly EUR 500 million Order intake pushing the book-to-bill ratio to 1.4 Order backlog Increased to EUR 6.9 billion Sales Up by EUR 200 million or 19% Trend of improving earnings continues; Earnings w

  12. Slide 12: Defence Key figures H1 2016

    Rheinmetall Defence Key figures H1 2016 in EUR million H1 2015 H1 2016 ∆ H1 2016/2015 Order intake 1,235 1,751 + 516 + 42% Order backlog (June 30) 6,728 6,905 + 177 + 3% Sales 1,054 1,250 + 196 + 19% EBITDA 15 46 + 31 + 207% EBIT - 27 +2 + 29 - 107% EBIT margin in % - 2.6 +0.2 + 2.8pp Free cash flow

  13. Slide 13: Sales increase in all divisions

    Rheinmetall Defence Sales increase in all divisions H1 earnings significantly improved Sales Defence in EUR million Operational earnings Defence in EUR million -107% +19% 2 1,250 Reasons for earnings development 1,054 Weapon and Ammunition 493 20 +31 — Higher sales in all business units 319 +174 1 E

  14. Slide 14: Increasing share of non-European order intake

    Rheinmetall Defence Increasing share of non-European order intake High order book coverage of mid-term future sales Order intake by region in EUR million Order backlog … turning into sales in EUR million 1,751 6,905 6,728 6% Rest of the World ~3,400 RoW 1,235 21% 58% Asia/MENA ~2,000 Asia/ MENA ~1,5

  15. Slide 15: Positive macro picture for defence industry

    Rheinmetall Defence Positive macro picture for defence industry Rising defence budgets in NATO countries German defence budget 2014-2020 in EUR billion Increase of defence expenditures of NATO countries from 2014 to 2016 in % +6% +14% Increasing budgets in 22 of 28 NATO countries 39,2 Baltic states

  16. Slide 16: Rheinmetall Group

    Rheinmetall Group © RH E I N M ETAL L A G | I n terim Rep ort H 1 2 0 1 6 | A u g u s t 4 , 2 0 1 6 16

  17. Slide 17: Short-term perspective: Outlook fiscal year 2016 confirmed

    Rheinmetall Group Short-term perspective Outlook fiscal year 2016 confirmed Sales in € billion Operational margin 2015 2016 2015 2016 Group 5.2 ~ 5.5 5.5% ~ 6% Defence 2.6 ~ 2.8 3.5% 4.5-5% Automotive 2.6 ~ 2.7 8.3% ~ 8% Assumptions Key large-scale projects in Defence to be realized as scheduled, no

  18. Slide 18: Disclaimer

    Rheinmetall Group 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

  19. Slide 19: Appendix: Rheinmetall Group

    Appendix: Rheinmetall Group © RH E I N M ETAL L A G | I n terim Rep ort H 1 2 0 1 6 | A u g u s t 4 , 2 0 1 6 19

  20. Slide 20: Key figures by division: Automotive

    Rheinmetall Automotive Key figures by division: Automotive in EUR million Mechatronics Hardparts Aftermarket +9 +26 -16 Sales 1,340 1,349 751 777 +4 490 474 143 147 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 -2 +5 Opera- -10 tional 114 112 107 65 68 70 -2 earnings 39 29 26 14 12

  21. Slide 21: Key figures by division: Defence

    Appendix: Rheinmetall Defence Key figures by division: Defence in EUR million Weapon and Munition Electronic Solutions Vehicle Systems +196 +57 Sales +174 +15 1,054 1,250 493 491 548 319 314 329 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 +31 Opera- +29 -6 +9 20 tional 2 -11 1 -5

  22. Slide 22: Cash flow statement: Group

    Appendix: Rheinmetall Group Cash flow statement: Group in EUR million Q1 Q2 Q3 Q4 Q1 Q2 ∆ Q2 2015 2015 2015 2015 2016 2016 2016/2015 Group net income 5 29 30 96 12 41 + 12 Amortization / depreciation 49 50 49 55 55 54 +4 Change in pension accruals 0 1 0 2 -16 2 +1 Cash flow 54 80 79 153 51 97 + 17 C

  23. Slide 23: Cash flow statement: Automotive

    Appendix: Rheinmetall Automotive Cash flow statement: Automotive in EUR million Q1 Q2 Q3 Q4 Q1 Q2 ∆ Q2 2015 2015 2015 2015 2016 2016 2016/2015 Net income 40 43 35 43 38 42 -1 Amortization / depreciation 28 28 28 32 33 31 +3 Change in pension accruals 0 0 -2 0 0 0 ±0 Cash flow 68 71 61 75 71 73 +2 Ch

  24. Slide 24: Cash flow statement: Defence

    Appendix: Rheinmetall Defence Cash flow statement: Defence in EUR million Q1 Q2 Q3 Q4 Q1 Q2 ∆ Q2 2015 2015 2015 2015 2016 2016 2016/2015 Net income - 30 -8 3 67 - 20 3 + 11 Amortization / depreciation 21 21 21 22 22 22 +1 Change in pension accruals 0 3 2 3 1 2 -1 Cash flow -9 16 26 92 3 27 + 11 Chan

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