Hensoldt AG · XETR:HAG
Hensoldt — H1 2023 Earnings Presentation
33 slides from Hensoldt's earnings presentation, Jul 28, 2023
Slide 1: H1 2023 Results – Analyst & Investor Presentation
HENSOLDT H1 2023 Results – Analyst & Investor Presentation Taufkirchen, 28th of July 2023 Thomas Müller, CEO Christian Ladurner, CFO This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT
Slide 2: Disclaimer Forward Looking Statement
HENSOLDT – H1 2023 Disclaimer Forward Looking Statement This presentation and the information contained herein are for information purposes only and should not be treated as This presentation may contain forward-looking statements about HENSOLDT and its businesses, including statements investment ad
Slide 3: Business Update
HENSOLDT – H1 2023 Business Update This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.
Slide 4: Update on strategic topics
HENSOLDT – H1 2023 Update on strategic topics NATO members commit German defence budget German National Security Strategy High-level meeting to above 2% GDP spending for 2024 increased by underlines need between German and French at Vilnius summit €1.7bn to €51.8bn for well-equipped forces ministers
Slide 5: German program landscape solidifies – HENSOLDT well positioned
HENSOLDT – H1 2023 German program landscape solidifies – HENSOLDT well positioned Service Programs 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 EF Mk1 + Rebaselining Rebaselining To 2035 -> Twinvis To 2025 -> STH1 2030+ -> F-35 (TOR Replacement) To 2030 -> ISS Eurofighter EK To 2030 -> Air
Slide 6: Top orders received
HENSOLDT – H1 2023 Top orders received Puma IFV Leopard 2 MBT TRML-4D Radar Self-protection Ula class submarine Sights and self-protection Leopard 2 Optronics Further TRML-4D for Ukraine Self-protection systems Periscopes and for Puma 2nd batch for Norway and Sweden for Ukrainian helicopters Optroni
Slide 7: Best-in-class compliance approach with focus on anti-corruption
HENSOLDT – H1 2023 HENSOLDT strives for a best-in-class compliance approach with a special focus on anti-corruption Standards of Business Conduct Anti-Corruption/ Export- Partner Review Compliance Directive Any partner contracting with the HENSOLDT Group is subject to the Partner Review Directive
Slide 8: Financials
HENSOLDT – H1 2023 Financials This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.
Slide 9: H1 2023 – strong performance in top line
HENSOLDT – H1 2023 H1 2023 – strong performance in top line in €m Strong order intake in first half of the year Significant increase of core revenue New record order backlog Core Pass-through 726 682 88 135 1,071 5,671 948 +17% 5,364 638 548 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Order inta
Slide 10: H1 2023 – bottom line follows excellent top line development
HENSOLDT – H1 2023 H1 2023 – bottom line follows excellent top line development in €m Further increase of profitability Investment in working capital as planned Including pass-through Core H1 2022 H1 2023 82 45 -136 61 11.3% 6.2% -157 27 8.9% 4.0% 12.8% 7.1% 11.1% 4.9% H1 2022 H1 2023 H1 2022 H1 202
Slide 11: H1 2023 – Sensors segment
HENSOLDT – H1 2023 H1 2023 – Sensors segment in €m Order intake in line with expectations Significant increase of core revenue Excellent margin performance Core Pass-through Including pass-through Core 603 575 88 135 86 810 817 +17% 52 14.2% 515 9.1% 441 16.7% 11.8% H1 2022 H1 2023 H1 2022 H1 2023 H
Slide 12: H1 2023 – Optronics segment
HENSOLDT – H1 2023 H1 2023 – Optronics segment in €m Strong momentum in order intake Sustainable growth of revenues Investments in digitalization and growth 9 8.0% 257 +15% 125 -4 144 109 -3.2% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Order intake(1) Revenue Adj. EBITDA(2) Main order intake d
Slide 13: We secure our long-term growth
HENSOLDT – H1 2023 We secure our long-term growth Net debt development Net leverage(1) 2.6x 1.6x 1.2x <1.0x ≤1.0x Since 2020 significant decrease in financial debt For 2023 increase in cash position planned Existing real estate lease contracts were prolongated to secure growth Cash neutral increas
Slide 14: Short term guidance specified, medium term guidance confirmed
HENSOLDT – H1 2023 Short term guidance specified, medium term guidance confirmed 2023 target(5) Medium term target(5) Orders to grow significantly faster than Book-to-bill ratio(1) / Order intake 1.1x - 1.2x revenue Specified: ~ €1,850m old: 7%-10% Revenue growth with stronger growth with stronger g
Slide 15: HENSOLDT GO! Wave 3 measures ready for implementation
HENSOLDT – H1 2023 HENSOLDT GO! Wave 3 measures ready for implementation Laying the foundation for our growth Increase Engineering Efficiency Industrialize production Achieve supply chain robustness to meet higher demand and growth processes to deliver on time, to ensure availability of our products
Slide 16: ERP transformation de-risked through comprehensive set of measures
HENSOLDT – H1 2023 ERP transformation de-risked through comprehensive set of measures Strong backfilling agreement of 80+ FTE to assure availability of best experts Independent advisory Independent advisory and strategic guardrails HENSOLDT and strategic guardrails for transformation ahead for major
Slide 17: Strong H1 performance lays the basis for a successful year 2023
HENSOLDT – H1 2023 Strong H1 performance lays the basis for a successful year 2023 Achievements Record order backlog of €5.7bn Strong order intake in first half of the year Efficient project execution and significant increase of core revenue Strong profitability FY 2023 guidance confirmed Re
Slide 18: Q&A session
HENSOLDT – H1 2023 HENSOLDT Q&A session This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.
Slide 19: Financial Section
HENSOLDT – H1 2023 HENSOLDT Financial Section This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.
Slide 20: Consolidated Income Statement
HENSOLDT – H1 2023 results Consolidated Income Statement First half year in € million 2023 2022 Revenue 726 682 Cost of sales -602 -568 Gross profit 124 114 Selling and distribution expenses -55 -53 General administrative expenses -48 -43 Research and development costs -13 -17 Other operating income
Slide 21: Consolidated Statement of Financial Position – Assets
HENSOLDT – H1 2023 results Consolidated Statement of Financial Position – Assets As at in € million H1 2023 YE 2022 Non-current assets 1,374 1,335 Goodwill 658 658 Intangible assets 377 384 Property, plant and equipment 128 121 Right-of-use assets 176 140 Investments and other financial assets(1) 26
Slide 22: Consolidated Statement of Financial Position – Equity & Liabilities
HENSOLDT – H1 2023 results Consolidated Statement of Financial Position – Equity & Liabilities As at in € million H1 2023 YE 2022 Share capital 105 105 Capital reserve and other reserves 535 554 Retained earnings -106 -55 Equity held by shareholders of HENSOLDT AG 534 604 Non-controlling interests 1
Slide 23: Consolidated Statement of Cash Flow (1/2)
HENSOLDT – H1 2023 results Consolidated Statement of Cash Flow (1/2) First half year in € million 2023 2022 Group result -16 -16 Depreciation, amortisation and impairments of non-current assets 58 52 Financial expenses (net) 15 16 Change in Provisions 26 -9 Inventories -121 -83 Contract balances -12
Slide 24: Consolidated Statement of Cash Flow (2/2)
HENSOLDT – H1 2023 results Consolidated Statement of Cash Flow (2/2) First half year in € million 2023 2022 Cash flows from operating activities -120 -134 Cash flows from investing activities -51 -46 Change in other financing liabilities 0 -13 Payment of lease liabilities -10 -9 Dividend payments -3
Slide 25: Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures
HENSOLDT – H1 2023 results Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures First half year in € million 2023 2022 Order intake 1,071 948 Sensors 817 810 Optronics 257 144 Elimination/Transversal/Others -3 -5 in € million Revenue 726 682 Sensors Optronics Together
Slide 26: Overview of EBITDA and EBIT adjustments
HENSOLDT – H1 2023 results Overview of EBITDA and EBIT adjustments EBITDA adjustments First half year EBIT adjustments First half year in € million 2023 2022 in € million 2023 2022 EBIT 14 2 EBIT 14 2 (+) Depreciation 23 22 (+) Effect on earnings from purchase price allocations 22 18 (+) Amortizatio
Slide 27: Reconciliation of reported to adjusted pre-tax unlevered FCF
HENSOLDT – H1 2023 results Reconciliation of reported to adjusted pre-tax unlevered FCF First half year in € million 2023 2022 Cash flows from operating activities -120 -134 Cash flows from investing activities -51 -46 Free cash flow -172 -180 (+) OneSAPnow-related non-recurring effects 3 – (+) Othe
Slide 28: Q2 Financial Overview HENSOLDT Group
HENSOLDT – H1 2023 results Q2 Financial Overview HENSOLDT Group Second quarter in € million 2023 2022 Order intake 724 267 Book-to-bill ratio(1) 1.9x 0.7x Revenue 388 396 Adjusted EBIT(2) 32 26 Adjusted EBITDA(3) 52 44 Adjusted EBITDA margin 13.3 % 11.1 % Adjusted pre-tax unlevered free cash flow(4)
Slide 29: Reconciliation of reported to adjusted net income
HENSOLDT – H1 2023 results Reconciliation of reported to adjusted net income First half year in € million 2023 2022 Group result -16 -16 (+) Effect on earnings from purchase price allocations 22 18 (+) Transaction costs – 0 (+) OneSAPnow-related non-recurring effects 3 – (+) Other non-recurring effe
Slide 30: Back-up
HENSOLDT – H1 2023 HENSOLDT Back-up This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.
Slide 31: Upcoming IR events
HENSOLDT AG – H1 2023 results Upcoming IR events* FY 2022 FY 2022 Q1 2023 AGM H1 2023 9M 2023 preliminary audited Feb 23rd Mar 22nd May 9th May 12th Jul 28th Nov 9th 2023 2023 2023 2023 2023 2023 31 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any thi
Slide 32: IR Contacts
HENSOLDT AG – H1 2023 results IR Contacts Contact HENSOLDT share Reports Contact: Type of share: Financial Reports: Veronika Endres Bearer shares https://investors.hensoldt.net Tim Schmid Stock Exchange: Annual Report: Phone: Frankfurt Stock Exchange https://annualreport.hensoldt.net +49
Slide 33: This document and its content is the property of HENSOLDT AG. It shall not
This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2023. All rights reserved.