Rheinmetall Ag · XETR:RHM

Rheinmetall — FY 2023 Earnings Presentation

42 slides from Rheinmetall's earnings presentation, Mar 14, 2024

  1. Slide 1: Conference Call FY 2023

    CONFERENCE CALL FY 2023 Armin Papperger, CEO Dagmar Steinert, CFO March 14, 2024

  2. Slide 2: Disclaimer

    FY 2023 CONFERENCE CALL 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 obje

  3. Slide 3: Tensions are increasing globally

    FY 2023 CONFERENCE CALL Securing tomorrow Tensions are increasing globally War in Ukraine Gaza conflict US elections Houthi attacks South China sea conflict TAKING RESPONSIBILITY IN A CHANGING WORLD 3 © Rheinmetall AG I March 14, 2024

  4. Slide 4: All 2023 financials significantly improved

    FY 2023 CONFERENCE CALL Securing tomorrow 2022 All 2023 financials significantly improved SALES EBIT pre ppa OPERATING MARGIN OPERATING RESULT 7,176 968 12.8% 918 (6,410) (747) (12.0%) (769) m€ m€ In % of Sales m€ OFCF RHM NOMINATION RHM BACKLOG DIVIDEND 356 19,881 38,290 5,70 (-151) (9,500) (26,600

  5. Slide 5: Germany's defence spending expected to achieve 2% target in 2024

    FY 2023 CONFERENCE CALL Securing tomorrow Germany’s defence spending expected to achieve 2% target in 2024 “We Europeans must take much greater care of our own security, now and in the future.” “However, this also means that we have to do everything we can to ensure that the skills and competencies

  6. Slide 6: Our target in the field of artillery

    FY 2023 CONFERENCE CALL Securing tomorrow Rheinmetall invests in securing national autonomy and supply security Our target in the field of artillery - Mid-term potential of €3.5bn p.a. - > 1.000,000 > 1,500,000 > 3,000 t Projectiles p.a. Propulsion systems p.a. RDX p.a. 6 © Rheinmetall AG I March 14

  7. Slide 7: Rheinmetall increases ammunition capacity on a global scale

    FY 2023 CONFERENCE CALL Securing tomorrow Rheinmetall increases ammunition capacity on a global scale Rheinmetall Waffe Munition Unterlüß Lithuania* (GER)  Construction of artillery production  Construction of an artillery production Ukraine competence center for facility for 200.000 rounds p.a. a

  8. Slide 8: Strong commitment to accelerate 155mm production

    FY 2023 CONFERENCE CALL Securing tomorrow Strong commitment to accelerate 155mm production "If you want peace, you have to successfully deter potential aggressors." ... "This is the only way to achieve our goal of making the Bundeswehr one of the most capable conventional armed forces in Europe once

  9. Slide 9: Our target in the field of rocket artillery

    FY 2023 CONFERENCE CALL Securing tomorrow Entering a new field of long-range rocket artillery  New plant in Unterlüß: Production of 3,000 rocket engines and other components  South Africa and Spain with many years of technological expertise  Long-term high demand for long-range artillery;  Europ

  10. Slide 10: Our target in the field of mid-cal ammunition

    FY 2023 CONFERENCE CALL Securing tomorrow Need for mid-caliber ammunition strongly increases  American Rheinmetall offers 25mm for F-35  New plants in Hungary and Australia under construction  Capacity expansion planned in:  Switzerland  Spain  Unterlüß Our target in the field of mid-cal ammun

  11. Slide 11: Our target in the field of tank ammunition

    FY 2023 CONFERENCE CALL Securing tomorrow More tank ammunition and development of next generation gun systems  Market launch of the latest generation of 120mm KE combat ammunition  Expansion of production capacities for 120mm combat and training ammunition  Investment in the development of automa

  12. Slide 12: Our target in the field of infantry ammunition

    FY 2023 CONFERENCE CALL Securing tomorrow Innovations and new air defence applications drive demand  Market launch of a 40mm MV weapon as Squad Support Weapon and a new type of combat ammunition with airburst capability  Market entry of a 40mm High Velocity Munition with Airburst function  Short-

  13. Slide 13: Investing in powder production is the key enabler

    FY 2023 CONFERENCE CALL Securing tomorrow Investing in powder production is the key enabler  Powder is one of the key technologies  Rheinmetall plants in Aschau (Germany), South Africa and Spain  Additional plant in Unterlüß planned  Rheinmetall is in the process of potentially tripling its powd

  14. Slide 14: Our target in the field of main battle tanks

    FY 2023 CONFERENCE CALL Securing tomorrow High demand for battle tanks and modernization of existing systems  Rheinmetall is an essential player in all current projects:  Challenger 3  Panther KF51  Main Ground Combat System  Leopard 2 Upgrade*  Leopard 3*  European Defence Fund studies Our t

  15. Slide 15: Our target in the field of IFV and 4x4

    FY 2023 CONFERENCE CALL Securing tomorrow Increasing demand for high mobility Tracked IFV: New 4x4 platform Caracal:  Lynx:  Contract with Germany, the Netherlands and  Serial production in Hungary Ukraine  Final round in the XM30 (USA) Wheeled IFV:  Puma:  Heavy weapon carrier  Addtl. Pumas

  16. Slide 16: Strategic acquisition in Romania opens new potential

    FY 2023 CONFERENCE CALL Securing tomorrow Strategic acquisition in Romania opens new potential  Strategic step: Rheinmetall acquires a 72.5% majority stake in Automecanica SRL, Mediaș/Romania  Annual sales potential of ~ €300m  “Rheinmetall Automecanica" is an excellent strategic fit to our Vehic

  17. Slide 17: Our target in the field of logistics

    FY 2023 CONFERENCE CALL Securing tomorrow Our trucks form the logistical backbone of the Bundeswehr  Capacity increase to 4,500 vehicles p.a. in Vienna  Truck call-offs directly from the special fund  Rheinmetall MAN User Nations Group counts 10 nations worldwide Swap body system (WLS) Unprotecte

  18. Slide 18: Our target in the field of Air Defence

    FY 2023 CONFERENCE CALL Securing tomorrow Rheinmetall is the European V-SHORAD system house  Market breakthrough for the Skyranger: series order from Germany (€595m) and Austria (mid three-digit million euro amount)  European Sky Shield Initiative with 21 user countries Skyranger 30  Skynex syste

  19. Slide 19: Our target in the field of digitization

    FY 2023 CONFERENCE CALL Securing tomorrow Growing importance of digitization over the mid-term  Digitization of land based operations (D-LBO)  Digitization of the Hungarian armed forces  Tactical wide area network (TAWAN)  Great potential in the air force sector  Major opportunities in civilian

  20. Slide 20: Our target in the field of aviation

    FY 2023 CONFERENCE CALL Securing tomorrow Breakthrough in domain air: strategic partnership for F-35  Up to 400 center fuselages to be produced in our new production facility in Weeze, Germany  Cooperation with Northrop Grumman and Lockheed Martin  Rheinmetall among the top five F-35 subcontracto

  21. Slide 21: Great potential in the American defence market

    FY 2023 CONFERENCE CALL Securing tomorrow Great potential in the American defence market  IFV: American Rheinmetall Vehicles in prototype phase 3 and 4 of the XM30 program  Replacement of > 4,000 Bradley IFV  Final award decision in 2027  Trucks: Rheinmetall and partner General Motors in first p

  22. Slide 22: Successfully reshaping our civil portfolio

    FY 2023 CONFERENCE CALL Securing tomorrow Successfully reshaping our civil portfolio Piston Disposal  Signing of small bore pistons completes our disposal process Sensor and Actuators Materials and Trade  Closing large bore pistons: Q1 ’23  Riken JV closed Q2 ‘23  All Shriram shares sold beginni

  23. Slide 23: Our mission. Our commitment. Our purpose.

    FY 2023 CONFERENCE CALL We empower governments to We serve our customers protect their populations from war and violence We develop technologies to We are investing in protect society and for new capacities a sustainable development Our mission. Our commitment. Our purpose. 23 © Rheinmetall AG I Mar

  24. Slide 24: Financials

    FINANCIALS TAKING RESPONSIBILITY IN A CHANGING WORLD PF eveinmeraue

  25. Slide 25: Group Highlights: Double-digit sales growth with strong margin expansion

    FY 2023 CONFERENCE CALL Group Highlights: Key financial data Double-digit sales growth with strong margin expansion Sales1) Operating result and margin in %1,2) in €m in €m +766 +149 (+11.9%) 171 (+19.4%) 678 37 968 (2.7%) 7,176 114 (10.6%) (0.6%) 918 (16.7%) -83 769 -1 6,410 (-1.3%) (-0.3%) 12.8% 1

  26. Slide 26: Dividend proposal on record high

    FY 2023 CONFERENCE CALL Group Highlights: Key financial data Dividend proposal on record high Earnings per share1)2) Dividend per share1) in € in € DPS Dividend proposal for AGM 2024 +34% 14.65 +33% 5.70 10.96 4.30 2022 2023 2022 2023 Payout ratio 39.2% 38.9% 26 © Rheinmetall AG I March 14, 2024 1)

  27. Slide 27: Impressive Q4 cash generation

    FY 2023 CONFERENCE CALL Group Highlights: Key financial data Impressive Q4 cash generation Operating free cash flow1) Working Capital1) in €m in €m +508 -257 +434 356 -1,349 +1,268 778 +1,751 +1,847 Q4 525 FY 2022 Δ Δ Δ Δ FY 2023 Inventory Trade receivables Trade liabilities Others -105 Comments Q1

  28. Slide 28: Balance sheet remains unleveraged and offers sufficient fire power

    FY 2023 CONFERENCE CALL FY 2023: Balance Sheet Balance sheet remains unleveraged and offers sufficient fire power Gross debt and maturity profile 1) Comments in €m 2024 2025 2026 2027 2028 2029ff  Net Debt level reflects acquisition financing of 1,913 12 281 Leasing & Others 57 0 80 Expal, positive

  29. Slide 29: Record RHM Nomination lifts RHM Backlog close to €40bn

    FY 2023 CONFERENCE CALL Securing tomorrow Record RHM Nomination lifts RHM Backlog close to €40bn in €bn 3.5 7.2 1.0 7.4 38.3 8.4 9.0 26.6 7.9 Nominated Backlog 8.1 Frame Backlog 3.4 19.9 Rheinmetall Nomination1) FY 23 22.0 15.1 Order Backlog RHM Backlog FY222) Order Intake Frame Nomination Booked Bu

  30. Slide 30: Backlog coverage in 2024 provides high confidence

    FY 2023 CONFERENCE CALL Securing tomorrow Backlog coverage in 2024 provides high confidence RHM backlog by segments RHM backlog coverage in €m in €m 38.290 10.702 11.581 8.936 3.326 8.142 26.572 1.399 1.308 4.882 4.287 1.480 1.272 5.700 3.539 1.180 4.810 4.198 16.368 510 1.169 11.954 470 6.057 5.562

  31. Slide 31: Defence segments push strong financial profile

    FY 2023 CONFERENCE CALL FY 2023: Segments Defence segments push strong financial profile in €m Sales Operating Result Margin 2022 2023 delta 2022 2023 delta 2022 2023 V e hic le S ys t e m s 2,270 2 ,6 0 9 14.9% 261 324 24.1% 11.5% 12 .4 % We a po n a nd A m m unit io n 1,359 1,7 5 6 29.2% 297 403 3

  32. Slide 32: Outlook

    OUTLOOK TAKING RESPONSIBILITY IN A CHANGING WORLD PF eveinmeraue

  33. Slide 33: Growth acceleration expected for 2024

    FY 2023 CONFERENCE CALL Outlook Growth acceleration expected for 2024 2024e 2023 Sales ~ €10bn €7.2bn Operating Margin 14-15% 12.8% OFCF to operating result* (“Cash conversion rate”) ~ 40% 38.8% 33 © Rheinmetall AG I March 14, 2024 * Based on new operating result definition pre-ppa

  34. Slide 34: Q&A Thank you for your attention!

    FY 2023 CONFERENCE CALL Q&A Thank you for your attention! 34 © Rheinmetall AG I March 14, 2024

  35. Slide 35: Next events and IR contacts

    FY 2023 CONFERENCE CALL Next events and IR contacts Financial calendar Documents IR Contacts and next events Dirk Winkels, Head of Investor Relations Tel: +49 162 2688921 Email: dirk.winkels@rheinmetall.com Anika Marker, Investor Relations Manager Tel: +49 171 4174060 Email: anika.marker@rheinmetall

  36. Slide 36: Appendix

    APPENDIX TAKING RESPONSIBILITY IN A CHANGING WORLD PF eveinmeraue

  37. Slide 37: 2024 Segment Guidance

    FY 2023 CONFERENCE CALL 2024 Segment Guidance 37 © Rheinmetall AG I March 14, 2024

  38. Slide 38: Segment Reporting

    FY 2023 CONFERENCE CALL Segment Reporting in €m Sales Operating Result Margin Q4 2022 Q 4 2 0 2 3 delta Q4 2022 Q 4 2 0 2 3 delta Q4 2022 Q 4 2 0 2 3 V e hic le S ys t e m s 950 937 -1.3% 139 14 2 2.2% 14.6% 15 .2 % We a po n a nd A m m unit io n 572 8 17 42.8% 188 241 28.2% 32.9% 2 9 .5 % E le c t

  39. Slide 39: Statement of financial position

    FY 2023 CONFERENCE CALL Statement of financial position Statement of financial position of Rheinmetall Group as of December 31, 2023 €millio n No tes 12/31/2023 12/31/2022 Assets Equity and liabilities Goodwill (18) 1,125 483 Share capital 112 112 Other intangible assets (18) 952 338 Capital reserve

  40. Slide 40: Income Statement

    FY 2023 CONFERENCE CALL Income Statement Income statement of the Rheinmetall Group for fiscal 2023 €millio n No tes 2023 2022 Sales (9) 7,176 6,410 Changes in inventories and work performed by the enterprise and capitalized (10) 696 153 Total operating performance 7,872 6,563 Other operating income

  41. Slide 41: Cashflow Statement

    FY 2023 CONFERENCE CALL Cashflow Statement Statement of cash flows of Rheinmetall Group for fiscal 2023 €millio n 2023 2022 Earnings after taxes1 586 540 (1,175) (534) Ca sh flow from inve sting a c tivitie s Amortization/depreciation/impairment of property, plant and equipment, intangible assets an

  42. Slide 42: Derivation of diluted earnings per share

    FY 2023 CONFERENCE CALL Derivation of diluted earnings per share 42 © Rheinmetall AG I March 14, 2024

Rheinmetall — FY 2023 Earnings Presentation on 6ix