Rheinmetall Ag · XETR:RHM
Rheinmetall — Q1 2012 Earnings Presentation
25 slides from Rheinmetall's earnings presentation, Apr 27, 2012
Slide 1: International Technology Group for Defence and Automotive
Q1 2012 I Düsseldorf, 27 April 2012 International Technology Group for Defence and Automotive © Rheinmetall 2012
Slide 2: Rheinmetall Group Key messages
Rheinmetall Group Rheinmetall Group Key messages Sales increased by 8% Mixed picture in earnings: Automotive at an all-time high, Defence earnings lower than previous year Operating free cash flow improved by € 73 million New divisional structure in both segments An IPO of the Automotive segment sti
Slide 3: Rheinmetall Defence Key messages (1)
Rheinmetall Defence Rheinmetall Defence Key messages (1) Sales grew by 7% Order intake: increase of 37%, mostly small- and medium-sized orders, largest single order for a software update for the German armed forces with a volume of € 24 million Operating free cash flow improved by € 98 million due t
Slide 4: Explaining factors for the development of sales and earnings
Rheinmetall Defence Explaining factors for the development of sales and earnings Sales bridge Q1 2011 to Q1 2012 € million 40 471 70 0 441 0 EBIT bridge Q1 2011 to Q1 2012 € million 38 11 Margin: 33% 4 13 6 4 Q1 2011 PPA ADS Logistical vehicles Volume effect Product/project Q1 2012 mix Q1 2012 © Rhe
Slide 5: Rheinmetall Defence Key messages (2)
Rheinmetall Defence Rheinmetall Defence Key messages (2) Reasons for the EBIT decline in Q1 2012 compared to the previous year: EBIT Q1 2011 included a positive one-off of € 11 million, caused by the write-up of existing 24% stake in ADS following the majority acquisition Secondly, the newly consoli
Slide 6: Order intake significantly increased
Rheinmetall Defence Order intake significantly increased Defence Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Order intake 316 432 + 116 + 37 % Order backlog 4,695 4,527 - 168 -4% Sales 441 471 + 30 +7% EBITDA 57 25 - 32 - 56 % EBIT 38 4 - 34 - 90 % EBIT margin (%) 8.7 0.8 - 7.9 pp EBT 36 1 - 35 - 96
Slide 7: Geared towards the global market for tank ammunition
Rheinmetall Defence Geared towards the global market for tank ammunition Contract on joint venture with General Dynamics signed Defense 50% 50% GENERAL DYNAMICS RHEINMETALL Munitions Ordnance and Defence International Tactical Systems (DMI) Combination of Rheinmetall‘s and General Dynamics‘ know-how
Slide 8: German defence budget will remain almost stable until 2016
Rheinmetall Defence German defence budget will remain almost stable until 2016 German defence budget 2011-2016 € billion Rheinmetall‘s selected programs and projects 2012 -1.5% Order intake and start of production and 32.0 31.9 32.4 32.0 31.5 31.5 delivery of “Future Soldier System” in Q2 Extension
Slide 9: Rheinmetall Automotive Key messages
Rheinmetall Automotive Rheinmetall Automotive Key messages Q1 2012 best quarter ever regarding absolute sales and EBIT: • Sales increased by 9% with an all-time high • Earnings at a record level, EBIT grew by 15% Continuing to benefit from important trends: • CLEAN & LEAN products • global presence
Slide 10: Sales, earnings and profitability at a record level
Rheinmetall Automotive Sales, earnings and profitability at a record level Automotive Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Sales 586 638 + 52 +9% EBITDA 65 72 +7 + 11 % EBIT 40 46 +6 + 15 % EBIT margin (%) 6.8 7.2 + 0.4 pp EBT 36 42 +6 + 17 % Capex 24 28 +4 + 16 % Amortization / Depreciation 2
Slide 11: Product portfolio corresponding to global market trends
Rheinmetall Automotive Product portfolio corresponding to global market trends Main reason for outperforming the markets since the mid of 2010 Growth rate (quarter compared to previous year’s quarter) in % 60 World LV production Triad LV production Western Europe LV production 40 20 Sales Automotive
Slide 12: Outperformance of the European market since mid of 2010
Rheinmetall Automotive Outperformance of the European market since mid of 2010 Confirming the strategic focus of the product portfolio Difference in quarterly growth rate of LV production Western Europe and Sales Automotive +26.0pp +24.7pp +20.4pp +21.0pp +17.4pp +11.8pp +10.9pp +10.0pp -7.2pp -19.4
Slide 13: Substantial growth in sales
Rheinmetall Group Substantial growth in sales Rheinmetall Group Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Sales 1,027 1,109 + 82 +8% EBITDA 121 93 - 28 - 23 % EBITDA margin (%) 11.8 8.4 - 3.4 pp Amortization / depreciation 44 48 +4 +9% EBIT 77 45 - 32 - 42 % EBIT margin (%) 7.5 4.1 - 3.4 pp Q1 2012
Slide 14: EBIT reduced due to Defence earnings
Rheinmetall Group EBIT reduced due to Defence earnings Rheinmetall Group Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) EBIT 77 45 - 32 - 42 % Interest - 14 - 12 +2 + 14 % EBT 63 33 - 30 - 48 % Taxes - 13 -8 +5 + 38 % Tax rate (%) 21 24 + 3 pp Group net income 50 25 - 25 - 50 % Q1 2012 © Rheinmetall 201
Slide 15: EPS at a respectable level
Rheinmetall Group EPS at a respectable level Rheinmetall Group Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Group net income 50 25 - 25 - 50 % Minority interests 2 -2 -4 - 200 % Group earnings (after minorities) 48 27 - 21 - 44 % Number of shares (weighted average in million) 38.3 38.1 - 0.2 Earnings
Slide 16: Increase of working capital lower than in the previous year
Rheinmetall Group Increase of working capital lower than in the previous year Therefore: cash generation better than in Q1 2011 Rheinmetall Group Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Group net income 50 25 - 25 Amortization / depreciation 44 48 +4 Change in pension accruals -7 -6 +1 Cash flow
Slide 17: Outlook as of March 2012 confirmed
Rheinmetall Group Outlook as of March 2012 confirmed Sales EBIT € billion € million 2012 2011 2012 2011 on previous Group approximately 4.9 4.5 year’s level 354 slightly below Defence approximately 2.5 2.1 previous year 223 slightly above Automotive slightly above 2.4 2.3 previous year 151 Q1 2012 ©
Slide 18: Appendix
Appendix GF ercnerau
Slide 19: New divisional structure in Defence
Rheinmetall Group New divisional structure in Defence Sales (FY2011)*: € 2.2 billion Combat Systems Electronic Solutions Wheeled Vehicles € 1.1 billion* € 0.8 billion* € 0.3 billion* Combat Platforms Air Defence Systems Logistical Vehicles** Infantry Defence Electronics Tactical Vehicles Protection
Slide 20: Key figures Defence by divisions
Rheinmetall Group Key figures Defence by divisions Combat Systems Electronic Solutions Wheeled Vehicles +7% -7% 441 471 -12% +119% Sales 221 205 186 163 127 58 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 -90% -99% -64% EBIT -379% 38 21 18 4 7 1 0 Q1 2011 Q1 2012 Q1 2011 Q1 2012 -
Slide 21: Cash flow Defence
Rheinmetall Group Cash flow Defence Defence Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Net income 30 2 - 28 Amortization / depreciation 19 22 +3 Change in pension accruals -5 -3 +2 Cash flow 44 21 - 23 Changes in working capital and other items - 293 - 173 + 120 Net cash used in operating activities
Slide 22: New divisional structure in Automotive
Rheinmetall Group New divisional structure in Automotive Sales (FY2011)*: € 2.4 billion Hardparts Mechatronics Motor Service € 1.1 billion* € 1.0 billion* € 0.3 billion* Pistons Mechanical Pumps Kolbenschmidt Spare Parts Bearings Electrical Pumps Pierburg Spare Parts Premium Aluminum Engine Blocks E
Slide 23: Key figures Automotive by divisions
Rheinmetall Group Key figures Automotive by divisions Hardparts Mechatronics Motor Service +9% +13% +7% 0% Sales 586 638 267 301 270 288 67 67 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 +15% +75% -9% 40 46 -14% EBIT 21 22 20 12 7 6 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012
Slide 24: Cash flow Automotive
Rheinmetall Group Cash flow Automotive Automotive Q1 Q1 Δ Q1 € million 2011 2012 (2012/2011) Net income 28 31 +3 Amortization / depreciation 25 26 +1 Change in pension accruals -1 -2 -1 Cash flow 52 55 +3 Changes in working capital and other items - 50 - 71 - 20 Net cash used in operating activities
Slide 25: 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