Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2023)

15 slides from Rheinmetall's investor day presentation, Nov 21, 2023

  1. Slide 1: Securing Tomorrow: Financials

    SECURING TOMORROW FINANCIALS Dagmar Steinert, CFO 21. November 2023

  2. Slide 2: Agenda

    Agenda OUR KPIS OUR MID-TERM GUIDANCE OUR CAPITAL ALLOCATION OUR BALANCE SHEET AND MATURITIES © Rheinmetall AG I

  3. Slide 3: A new KPI approach: operating result pre PPA and cash conversion

    SECURING TOMORROW Let‘s start with the boring part first - a new KPI approach  The operating result will be reported pre PPA post OPERATING RESULT Expal acquisition PRE PPA  Preliminary PPA effect of €7m per month Cash conversion will be guided as percentage of operating result 2 years rolling cas

  4. Slide 4: Consolidated and adjusted income statement

    SECURING TOMORROW Consolidated and adjusted income statement In €m Reported Special effects PPA effects Adjusted Sales 4,618 4,618 Total operating performance 5,336 5,336 Cost of materials 2,761 2,761 Gross profit 2,576 2,575 Other operating income 96 96 Personnel costs 1,502 1,502 Depreciation and

  5. Slide 5: Mid-term guidance drill-down

    SECURING TOMORROW Mid-term guidance drill-down Operating result by Division (in €, in %) Operating Margin Target 2026 > 15% 26% 10 % 14% 13% minimum 9% profitability hurdle W+A ES VS PS Sales >4bn <3bn <5bn <3bn Legend: Width of rectangles represents expected sales in 2026. The size of the rectangle

  6. Slide 6: Successfully structuring growth

    SECURING TOMORROW Successfully structuring growth Sales consolidation (in €m / in % of sales) ~9% ~10% ~8% ~7% Increased consolidation driven by ~(700) ~(900) growing structures 2023e 2024e 2025e 2026 target  Growth momentum reflected in higher sales consolidation Operating result consolidation (in

  7. Slide 7: Diversified capital allocation continues

    SECURING TOMORROW Diversified capital allocation continues Capex M&A Debt Dividend Buyback Leverage  Supporting growth  Fire power  Setting leverage  Payout ratio of 35-  Renewal of the with peak in 2024 remains high with targets and 40% of net income authorized capital and then gradually focus

  8. Slide 8: Capex peak in 2024 to support strong growth trajectory

    SECURING TOMORROW Capex peak in 2024 to support our strong growth trajectory Vehicle Weapon and Electronic Top 2024 projects Power Systems Non-Divisional Systems Ammunition Solutions  Hungary  Expal  F-35  Logistic  IT  Panther  Hungary  Panther centre  Vienna  Aschau  Invent  South Afri

  9. Slide 9: M&A with focus on strategic acquisitions and portfolio optimization

    SECURING TOMORROW M&A with focus on strategic acquisitions and portfolio optimization Strategic High ROCE Fit Financial Synergies Growth Potential © Rheinmetall AG I CMD 2023 9

  10. Slide 10: We feel comfortable with our current leverage ratio

    SECURING TOMORROW We feel comfortable with our current leverage ratio Equity ratio: Net debt / Ebitda: Investment Grade rating: >30% <3 Baa2 stable outlook (29.6%) (1.95) (Moodys) Maturity profile 1) 2023 2024 2025 2026 2027 2028 2029ff  We feel comfortable with 30% + equity ratio 12 0 80  We want

  11. Slide 11: Almost 70% of oFCF paid out to shareholders over the last decade

    SECURING TOMORROW Almost 70% of our oFCF paid out to shareholders over the last decade  Increase of payout ratio to at least 35-40% of net income (before PPA)  Continued shareholder value creation  Dividend expected to grow over the next years 4.3 1,028 3.3 30% 701 2.4 2.1 2.0 1.7 1.5 1.1 2013-20

  12. Slide 12: Share buyback remains on the agenda

    SECURING TOMORROW Share buyback remains on the agenda New authorization on the agenda for the AGM 2024 in order to strengthen the instrument share buyback in the future © Rheinmetall AG I CMD 2023 12

  13. Slide 13: Key Messages

    SECURING TOMORROW Key Messages  Strong book to bill ratio >1  Backlog coverage secured  Financials to support growth in place  Enough fire power for additional M&A  Continued shareholder value creation © Rheinmetall AG I CMD 2023 13

  14. Slide 14: Time for a short lunch break

    Time for a short lunch break… …we will continue in 60 minutes © Rheinmetall AG I CMD 2023 14

  15. Slide 15: 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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