Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (November 2014)
31 slides from Rheinmetall's investor day presentation, Nov 26, 2014
Slide 1: Capital Markets Day 2014 – Horst Binnig, CEO Automotive
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 Capital Markets Day 2014 | Düsseldorf | November 26, 2014 Horst Binnig, CEO Automotive © RHEINMETALL AG 2014
Slide 2: Data, facts and figures; Internationalization; Innovations and new products
Data, facts and figures Internationalization Innovations and new products © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 2
Slide 3: 2014 - the best year in KSPG history
2014 - the best year in KSPG history. We will outperform the market. Markets – we are well positioned. Focus today: China. Products and innovations – The main drivers of our business. © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 3
Slide 4: Outlook 2014: Outstanding year for Automotive
Rheinmetall Automotive Outlook 2014: Outstanding year for Automotive Figures 2013 and 2014e (Continuing operations, i.e. excluding ATAG JV) in EUR million Sales 2013 2,262 Above +138 previous year 2014e 2,400 Operational 2013* 158 Earnings +32 All time high 2014e 180 Operational Margin 2013* 7.0% Ab
Slide 5: Internationalization (focus on China)
Data, facts and figures Internationalization (focus on China) Innovations and new products © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 5
Slide 6: Situation analysis – markets
Rheinmetall Automotive Situation analysis – markets +29% Global engine production in million units +17% +12% +16% 27 21 14 15 26 23 China NAFTA +6% +35% Europe 20 22 4 6 86 101 India Japan, Korea, ASEAN +17% 4 5 South America 2013 2016 The global engine market will exceed 100 million units of produc
Slide 7: Situation analysis – global presence
Rheinmetall Automotive Situation analysis – global presence Global engine production in million units +17% Market will not limit our future growth 86 101 KSPG is present in all mobility markets 2013 2016 © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M
Slide 8: Shift of global production of passenger cars
Rheinmetall Automotive Shift of global production of passenger cars Global LV production 2011-20 in million units BRIC & ASEAN1 +18.2 million units 72% growth share KSPG growth 2013 - 2020 +25.4 million units Stronger than market growth CAGR 3.9% 2011 2012 2013 Mexico NAFTA EU Brazil Russia India Ch
Slide 9: Global car production
Rheinmetall Automotive Global car production Light vehicle production in million units 25 Western Europe Japan 20 USA Beijing 15 Germany Brazil Shanghai 10 Russia Hongkong 5 India China 0 02 03 04 05 06 07 08 09 10 11 12 13 Since 2012 China has been the biggest car market in the world © RH E I N M E
Slide 10: The KSPG – China Story (1/3)
Rheinmetall Automotive The KSPG – China Story (1/3) Sales joint ventures (100%) and Wholly Foreign-owned Enterprises in EUR million Phase 1: Market entry Until 1996 license business 1997 1. JV with SAIC, product: pistons 2001 2. JV with SAIC, product: castings 2005: — 2 joint ventures — ~ EUR 80 mil
Slide 11: The KSPG – China Story (2/3)
Rheinmetall Automotive The KSPG – China Story (2/3) Sales joint ventures (100%) and Wholly Foreign-owned Enterprises in EUR million Phase 1: Phase 2: Market entry Invest in growth 2008 Motorservice China 2009 Pierburg China 2009 Second site Yantai, Castings, KPSNC 2009: — 2 joint ventures — 2 own co
Slide 12: The KSPG – China Story (3/3)
Rheinmetall Automotive The KSPG – China Story (3/3) Sales joint ventures (100%) and Wholly Foreign-owned Enterprises in EUR million Phase 1: Phase 2: Phase 3: Market entry Invest in growth Outperforming market 2012 1. JV with Mikuni, PMP 2012 3. JV with SAIC (HASCO), PHP 2013 Start KS LBC, Large Bor
Slide 13: Automotive network in China today - sites and products
Rheinmetall Automotive Automotive network in China today - sites and products Joint Ventures (50 : 50) KPSNC KPSNC KPSNC KPSNC KSSP PHP Shanghai Kunshan Yantai Shanghai Shanghai Shanghai Loutang (Head office) Cylinder heads, Fushan Waigang Anting Yuepuzhen Cylinder heads, Engine blocks Cylinder head
Slide 14: Innovations and new products
Data, facts and figures Internationalization Innovations and new products © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 14
Slide 15: Global CO2 development
Rheinmetall Automotive Historic CO2 development Global CO2 development 400 350 CO2 (ppm) 300 250 200 150 -800.000 -600.000 -400.000 -200.000 1700 1800 1900 2000 year COCO 2-Konzentration (ppm) 2 Concentration (ppm) CO2 in the Troposphere 1.5.2013 391 402 Source: NASA © RH E I N M ETAL L A G 2 0 1 4
Slide 16: Worldwide legislation on climate protection
Rheinmetall Automotive Worldwide legislation on climate protection CO2-Targets for passenger cars 240 200 CO2–Emissions South Korea 2015: 153 (g/km NEDC) 160 Mexico 2016: 153 Brazil 2017: 146 China 2020: 117 120 USA 2025: 103 India 80 Japan 2020: 105 2021: 113 Canada 2025: 103 EU 2021: 95 40 0 2000
Slide 17: Permanently tightening and globally converging emission legislation
Rheinmetall Automotive Permanently tightening and globally converging emission legislation Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 China Diesel China II China III China IV China Gas. China II China III China IV Further convergence India Bharat Stage III
Slide 18: CO2 savings with current KSPG products and innovations
Rheinmetall Automotive CO2 savings with current KSPG products and innovations 5-6% less fuel 3 g/km CO2 4% fuel reduction Variable valve trains savings Specially composed Steel pistons for sliding layers for bearings diesel engines Optimized piston Coolant, oil and assemblies vacuum pumps 1.5-3% fue
Slide 19: Market trends for future drive systems
Rheinmetall Automotive Market trends for future drive systems Car sales in million units Phase 1: until 2020 Pure combustion Hybrid and E-Drive 250 Gasoline-Hybrid Gasoline-Plugin-Hybrid 200 Diesel-Hybrid 150 Diesel-Plugin-Hybrid 100 E-Drive Gasoline 50 Gasoline-Plugin-Hybrid Fuel Cell-Drive 0 Diese
Slide 20: Four key strategic directions
Rheinmetall Automotive Four key strategic directions Market attractiveness Improve / Enter Growth high Improve company capabilities and additionally Grow the profitable business profitability and volume as much as possible Exit Cash low Exit unprofitable business as Limit resources to maximize soon
Slide 21: Screening of automotive product groups
Rheinmetall Automotive Screening of 70 automotive product groups Business Unit A Business Unit B Business Unit C Division Mechatronics Business Unit D Business Unit E 54% of the product groups Business Unit A Business Unit B Business Unit C Division Hardparts Business Unit D 37% of the product group
Slide 22: Balanced product portfolio
Rheinmetall Automotive Balanced product portfolio Product groups in numbers and in % of sales In % of sales 1% 65% 31% 3% 30 28 20 15 13 9 10 5 0 Potential Enter Grow Cash Exit © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 22
Slide 23: Situation analysis – products
Rheinmetall Automotive Situation analysis – products Strongest drivers: Reduction of Reduction of fuel More performance emissions consumption from smaller engines KSPG has the right product portfolio for a substantial growth © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T B
Slide 24: Product highlights 2014
Rheinmetall Automotive Product highlights 2014 Steel pistons Oil, water and for PC and Truck vacuum pumps Consumption reduction High efficiency and long up to 4% durability, fully variable oil pumps are saving up to 5% fuel Aluminum castings for UniValve chassis and car bodies (variable valve train)
Slide 25: The divisions strategy in headlines
Rheinmetall Automotive The divisions strategy in headlines Hardparts is growing with existing products in emerging markets Mechatronics is growing with new products in existing markets Aftermarket has a good profitability and potential for internal and external growth © RH E I N M ETAL L A G 2 0 1 4
Slide 26: Market trends for future drive systems
Rheinmetall Automotive Market trends for future drive systems Car sales in million units Phase 1: Phase 2: until 2020 after 2020 Pure combustion Hybrid and E-Drive 250 Gasoline-Hybrid Gasoline-Plugin-Hybrid 200 Diesel-Hybrid 150 Diesel-Plugin-Hybrid 100 E-Drive Gasoline 50 Fuel Cell-Drive 0 Diesel 2
Slide 27: Non-light vehicles sales 2014e
Rheinmetall Automotive Non-light vehicles sales 2014e Truck Aftermarket MIR Large-bore (Marine, Continuous pistons Industrial, casting Recreational) Industry pistons (Bearings) © RH E I N M ETAL L A G 2 0 1 4 | C A P I TAL M A RK E TS D A Y | H ORS T BI N N I G | N OV E M BER 2 6 , 2 0 1 4 27
Slide 28: Examples for alternative propulsion systems with KSPG content
Rheinmetall Automotive Examples for alternative propulsion systems with KSPG content BMW i3 − Secondary-air valve VW Golf GTE (Plug-In-Hybrid) − Secondary-air system BMW i8 − Crankshaft bearings − Electrical switching valves − Thrust washers − Crankshaft bearings − Collar bearings VW Jetta Hybrid −
Slide 29: Product highlight 2014 (Prototype)
Rheinmetall Automotive Product highlight 2014 (Prototype) New heating and cooling module for electric and hybrid cars • Use of any kind of “waste” energy (e.g. loading and using the battery, engine, …) • Plug and play concept for cabin heating, easy to install • Higher range for pure e-cars (especia
Slide 30: Markets will not limit our growth, we will outperform the market
Markets will not limit our growth, we will outperform the market. New and innovative products are in the pipeline. Good balanced product portfolio for PC, Truck and MIR applications. Substantial growth in the emerging markets with own and JV companies. Target 8% EBIT margin under stable market condi
Slide 31: Disclaimer
Rheinmetall Automotive 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 objec