Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (November 2015)
22 slides from Rheinmetall's investor day presentation, Nov 26, 2015
Slide 1: Capital Markets Day Vienna, Helmut P. Merch, CFO
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 | Vienna | November 26, 2015 Helmut P. Merch, CFO © RHEINMETALL AG 2015
Slide 2: News since Q3 2015: Rheinmetall increases capital
Rheinmetall Group News since Q3 2015: Rheinmetall increases capital Rheinmetall AG: Stock price development (Xetra) since 2009 10/11 Nov 2015 Capital Increase (EUR 58) 6/7 July 2009 Capital increase (EUR 29) © RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER 26, 2015 2
Slide 3: Corporate development 2009-2015: Strong increase in sales and total assets
Rheinmetall Group Corporate development 2009 - 2015 Strong increase in sales and total assets Sales Group in EUR billion Balance sheet in EUR million Segmental operational margin in % of segmental sales + 50% ~ 5.1 + 45% ~ 5.5 5.3 4.7 3.8 3.4 8% > 3% 0% -5% 2009 2014 2015e 2009 2014 2015e Defence Au
Slide 4: Equity ratio lowered, net financial debt increased
Rheinmetall Group Corporate development 2009 - 2015 Equity ratio lowered, net financial debt increased Equity (at year-end) in EUR million Net financial debt (at year-end) in EUR million Equity ratio in % 619 1,256 1,197 1,134 330 30% 27% 23% 24% -44 2009 2014 Q3 2015 2015e 2009 2014 Q3 2015 © RHEIN
Slide 5: Capital increases: Comparison 2009 and 2015
Rheinmetall Group Capital increases Comparison 2009 and 2015 Capital Increase Procedure Gross proceeds Use of proceeds increase by 2015 10% Exclusion of EUR 230 mn – Finance Rheinmetall's growth pre-emptive strategy in the defense and rights, automotive sectors, Accelerated – Strengthen the financia
Slide 6: Capital increase 2015: Supporting the growth strategy
Rheinmetall Group Capital increase 2015 Reasons for the transaction: Supporting the growth strategy AUTOMOTIVE DEFENCE Organic growth Organic growth — Growth above light vehicle production — High order backlog and ongoing order — Increasing demand for Mechatronics intake set basis for future top-lin
Slide 7: Increasing sales managed with a shrinking equity basis and higher net debt
Rheinmetall Group Corporate development 2009 - 2015 Increasing sales managed with a shrinking equity basis and higher net debt Sales — Growth by EUR 1.7 billion (+50%) Balance sheet — Assets and liabilities increase by EUR 1.7 billion (+45%) Pensions — Increase by EUR 511 million (+84%) Equity — Equ
Slide 8: © RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER
© RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER 26, 2015 8
Slide 9: Outlook: Short-term perspective
Rheinmetall Group Outlook: Short-term perspective Recent developments and actual expectations A U TO M O T I V E DEFENCE ― Q4 sales expected to come in ― Continuing the favorable order intake at previous year‘s level situation ― Automotive market China ― Expected Q4 sales lead to a raised LV product
Slide 10: Q4 figures will show typical back-end loaded structure in Defence
Rheinmetall Group Outlook: Short-term perspective Q4 figures will show typical back-end loaded structure in Defence Ø 2013/2014 2015 Automotive sales and earnings in EUR million Q1-Q3 Q4 Q1-Q3 Q4e Sales 1,763 593 2,356 1,957 > 600 ~2.6 bn Op. earnings 127 45 172 164 > 40 25% of annual sales generate
Slide 11: Outlook FY 2015: Raised guidance confirmed
Rheinmetall Group Outlook FY 2015 Raised guidance as of November 5, 2015 confirmed Group Automotive Defence Sales in EUR million Sales in EUR million Sales in EUR million +9% +6% +12% ~5,100 2,448 ~2,600 ~2,500 4,417 4,688 2,262 2,155 2,240 FY 2013 FY 2014 FY 2015e FY 2013 FY 2014 FY 2015e FY 2013 F
Slide 12: © RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER
© RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER 26, 2015 12
Slide 13: Automotive 2015 and beyond: Maintaining the target margin level
Rheinmetall Automotive Automotive 2015 and beyond Maintaining the target margin level Operational margin in % of sales Automotive 2015-18 8% 8% 7.5% 6.5% 7.0% 5.9% Best-cost 4.1% concept Recovery from the crisis Ongoing growth of Downturn of LV global LV production production in Europe Product portf
Slide 14: Defence 2015 and beyond: earnings improvement will continue
Rheinmetall Defence Defence 2015 and beyond Based on turnaround 2015, earnings improvement will continue Operational margin in % of sales Defence 2015-18 11.1% Declining ammunition business: 9.9% From 33% of sales (2010) to 24% (2015e) 6-7% Increasing systems business: No extraordinary 6.3% From 48%
Slide 15: Rheinmetall 2015 and beyond: Group earnings benefit from both segments
Rheinmetall Group Rheinmetall 2015 and beyond Group earnings will benefit from both segments Operational margin in % of sales Group 2015-18 7.9% 7.4% 6.3% >5% 2.4% 2.2% 2010 2011 2012 2013 2014 2015e 2016e 2017e 2018e © RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER 26, 2015
Slide 16: Cash flow generation as future priority
Rheinmetall Group Cash flow generation as future priority Automotive und Defence: mixed effects in previous years Operating Free Cash Flow Automotive in EUR million Operating Free Cash Flow Defence in EUR million In % of sales (Ø): 0.3% ~ 2.4% In % of sales (Ø): 3.9% ~-4% 169 96 67 40 34 16 3 -21 -3
Slide 17: Cash flow generation as future priority: Automotive
Rheinmetall Group Cash flow generation as future priority Automotive Operating Free Cash Flow Automotive in EUR million Cash Flow target: Range of 2% - 4% of sales 96 40 34 Main drivers: 3 − Top-line growth -21 − Stable EBITDA margin level: 12% - 13% 2010 2011 2012 2013 2014 2015e − Capex ratio: 5.5
Slide 18: Cash flow generation as future priority: Defence
Rheinmetall Group Cash flow generation as future priority Defence Operating Free Cash Flow Defence in EUR million 169 Cash Flow target: Range of 2% - 4% of sales 67 Main drivers: 16 − Top-line growth − Increasing EBITDA margin: range of 7% - 10% -38 − Capex ratio stable: 3% - 4% − Working capital ma
Slide 19: © RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER
© RHEINMETALL AG 2015 | CAPITAL MARKETS DAY | HELMUT P. MERCH | NOVEMBER 26, 2015 19
Slide 20: Mid-term perspective: Looking ahead
Rheinmetall Group Mid-term perspective Looking ahead ― Markets with good mid-term perspectives: Global growth in Defence and Automotive CAGR 2015-2018e Automotive: 3.5% CAGR 2015-2018e Defence: 0.9% — Changing markets: Automotive Stable market development will lead to normal growth rates R&D efforts
Slide 21: Mid-term perspective: Looking ahead
Rheinmetall Group Mid-term perspective Looking ahead ― Organic growth Top-line growth remains an important driver of Rheinmetall‘s earnings Well secured by nomination letters in Automotive and order backlog in Defence ― Growth by acquisitions remains a valid option for both segments ― Improving prof
Slide 22: Being prepared for the future
Rheinmetall Group Being prepared for the future Capital increase – Condition for stable finances and for future growth Restructuring – Restructuring finished: Measures have improved cost structures – Concentration on high-end products with attractive profitability Profitability in Automotive – Impro