Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Presentation (March 2018)
76 slides from Rheinmetall's investor presentation, March 2018
Slide 1: Rheinmetall AG Corporate Presentation FY 2017
Rheinmetall AG Corporate Presentation FY 2017 Düsseldorf, March 2018
Slide 2: Serving the need for mobility and security
Rheinmetall Group Serving the need for mobility and security Order backlog €6,936m Key Sales €5,896m Strategy Organic growth Performance Op. result €400m roadmap International expansion Indicators Operating FCF EPS €276m €5.24 2017 Leading by innovations Targeted acquisitions DPS €1.70* AUTOMOTIVE D
Slide 3: More than 100 production sites and offices on all continents
Rheinmetall Group More than 100 production sites and offices on all continents Germany UK Defence Russia USA Netherlands Norway Singapore Sites Canada Switzerland Sweden South Saudi Arabia Malaysia Mexico Austria Poland Africa UAE Australia Italy USA Mexico Japan China Germany India France Spain Aut
Slide 4: FY 2017 Group Highlights
Rheinmetall Group FY 2017 Group Highlights Significantly higher free cash flow and excellent earnings development Sales Operating Result Operating FCF EPS €5.9bn +5.2% vs PY €400m +13.3% vs PY €276m +71.4% vs PY €5.24 +11.7% vs PY Group sales development on the back of solid demand in both segments
Slide 5: FY 2017 Highlights: Defence
Rheinmetall Group FY 2017 Highlights: Defence Breaking news: Rheinmetall nominated preferred bidder for Land 400 Phase 2 Order scope >200 vehicles in different variations (incl. >130 Lance turrets) Total order volume of around €2bn Finalization of contract negotiation Order schedule Q1 Q3 Q1 2018 20
Slide 6: Mid-term outlook: Drivers for structural earnings improvement
Rheinmetall Group Mid-term outlook Drivers for structural earnings improvement Automotive targets Sales in Margin €bn 10% Increase content per car 3 Approx. 8.5% op. margin 8% Gain more powertrain neutrality Further develop product portfolio by entering new 2 6% markets, e.g. e-mobility 4% Increase
Slide 7: Mid-term outlook: Drivers for profitable growth intact
Rheinmetall Group Mid-term outlook Drivers for profitable growth intact Defence targets Sales in Sales 2017-2020: Margin €bn ~10% CAGR 4 8% Markets at the dawn of a long-term growth trend Increasing margins due to the lesser impact of legacy 6-7% op. margin 3 6% contracts Potential update Higher mar
Slide 8: Short-term outlook
Rheinmetall Group Short-term outlook High sales growth and earnings improvement targeted Sales Operating margin 2017 2018e 2017 2018e Growth y/y in % Growth y/y in % in % in % Group 5.2 8-9 6.8 ~ 7.0 Automotive 7.7 3-4 8.7 ~ 8.5 (IHS 2.1%) (IHS 1.9%) Defence 3.1 12 - 14 5.7 6.0 - 6.5 At constant exc
Slide 9: Financial Details
Rheinmetall Group FINANCIAL DETAILS © Rheinmetall AG / Corporate Presentation March 2018 9
Slide 10: Strong Group financials underscore strategy & performance going forward
Rheinmetall Group Strong Group financials underscore strategy & performance going forward! Key financials in €m FY 2016 FY 2017 Δ Total assets 6,150 6,186 36 Total assets stable Equity 1,781 1,955 174 Equity ratio 29.0% 31.6% 260bp Equity ratio rose by 260bp to 31.6% Net cash 19 230 211 Net cash pos
Slide 11: Outstanding cash flow development and improved cash flow-to-sales-ratio
Rheinmetall Group Outstanding cash flow development and improved cash flow-to-sales-ratio Operating Free Cash Flow Key drivers changes y/y in €m +71.4% Net income increased on improved results and lower net interest effects 82 13 13 30 D&A included unscheduled D&A of €8m 37 Lower capex in Defence an
Slide 12: Group ROCE increased 110bp and further covered cost of capital
Rheinmetall Group Group ROCE increased 110bp and further covered cost of capital in €m FY 2016 FY 2017 Δ EBITDA 581 626 45 EBIT rose despite net negative €15m special effects EBIT 353 385 32 Interest result benefited from lower average Interest result -54 -39 15 interest rate and net cash position E
Slide 13: Stronger net cash position
Rheinmetall Group Stronger net cash position Net financial debt / net cash Debt composition and maturity profile in €m at quarter-end in €m 230 x12 ∑ 646 Net cash Other & 20 Leasing 19 133 Bank loans 2018 2019 2020 2021 2022 2023 2024ff. Net Promissory 35 29 243 58 financial notes debt 122 182 245 2
Slide 14: Financial solidity materially improved
Rheinmetall Group Financial solidity materially improved Drivers Equity and Equity ratio EUR m % 2,000 40% 1,500 30% Confidence increased by delivery on our targets 28% 27% 29% 32% 1,000 20% 23% Capitalizing on our restructuring efforts 500 10% 0 0% Equity ratio further improved 2013 2014 2015 2016
Slide 15: FY 2017 Highlights: Automotive
Rheinmetall Automotive FY 2017 Highlights: Automotive Strong sales growth with further improved result and margin Sales grew by 7.7% (7.9% FX-adjusted) to €2.9bn, clearly outperforming markets Mechatronics drove sales and results due to high demand for emission reduction and fuel efficiency products
Slide 16: FY 2017 Highlights: Automotive – Successful launch of innovative products
Rheinmetall Automotive FY 2017 Highlights: Automotive Successful launch of innovative products Electronic vacuum pump Vapor pump Market introduction of new ICE products Electric throttle and control valve In plastic Variable valve train Catering to the demand for lightweight parts Structural part -
Slide 17: Q4 2017: Automotive with excellent sales growth
Rheinmetall Automotive Q4 2017: Automotive with excellent sales growth on high profitability level Quarterly sales and margin development Comments on quarterly performance Positive sales development of 7.2% supported by all divisions 737 728 712 664 684 (9.0% FX-adjusted) 9.0 9.2 8.8 Improved operat
Slide 18: Q4 2017 result growth on the back of strong Mechatronics performance
Rheinmetall Automotive Q4 2017 result growth on the back of strong Mechatronics performance Sales Automotive Operating result Automotive in €m in €m +7.2% 5.0% Mechatronics 664 712 63 Good demand for high tech/high 60 margin products continued Hardparts 380 +7.1% 407 Recovery of LBP demand 37 +24.3%
Slide 19: Automotive outperformed global markets again
Rheinmetall Automotive Automotive outperformed global markets again Global LV production Sales Automotive LV / Non-LV in million units in €m 7.7% 2.1% 2,861 93.1 95.1 2,656 21.5 22.2 +12.7% 948 Non-LV business 842 17.8 17.1 Without China: +2.0% 22.7 23.6 +5.5% 1,814 1,913 LV business 4.0 4.5 27.1 27
Slide 20: Without exception: All regions outperformed!
Rheinmetall Automotive Without exception: All regions outperformed! Regional sales development Automotive Regional Automotive sales growth FY 2017 in €m in % (IHS March 2018) 2,861 2,656 0.8% 5.6% -2.3 0.6% Germany 5.0 5.2% 7.5% 7.4% 3.5% 5.3 LV production 2.8% Europe (excl. DE) 6.1 Automotive sales
Slide 21: Demand for our products in China on the rise
Rheinmetall Automotive Demand for our products in China on the rise Sales in €m +4.1% 934 79 972 -41 Serie 825 845 Sales increased by 4.1% (7.8% FX-adjusted) to €972m, clearly outperforming Chinese market growth of 2.2% 109 127 Strong and profitable growth in JVs accelerated 2016 operational FX 2017
Slide 22: FY 2017 Highlights: Defence
Rheinmetall Defence FY 2017 Highlights: Defence Strong results and cash flow on the back of higher sales Sales grew 3.1% (2.9% FX-adjusted) to above €3bn Operating result up by 18.4% to €174m Operating margin increased 70bp to 5.7% Free operating cash flow more than doubled to €238m Successful partn
Slide 23: FY 2017 Highlights: Defence – foundation for next growth phase
Rheinmetall Defence FY 2017 Highlights: Defence 2017 laid the foundation for the next growth phase International tender pipeline with excellent prospects Positioning as systems provider becomes more important New strategic co-operations developed © Rheinmetall AG / Corporate Presentation March 2018
Slide 24: Solid fourth quarter with high cash flow generation
Rheinmetall Defence Solid fourth quarter with high cash flow generation Quarterly sales and margin development Comments on quarterly performance 1,034 Sales slightly lower, (-2.2%; -0.9% FX-adjusted) 1,011 731 682 11.3 Margin expansion driven by Weapon & Ammunition 11.1 612 3.3 6.7 Q4 free cash flow
Slide 25: Q4 margin improvement in a weaker sales quarter
Rheinmetall Defence Q4 margin improvement in a weaker sales quarter Sales Defence Operating result Defence in €m in €m Margin -2.2% -0.9% 11.3% 1,034 1,011 115 114 Weapon and Ammunition High share of profitable ammunition and international business 392 +9.9% 431 63 Electronic Solutions +22.2% 77 17.
Slide 26: German military spending hike becomes visible
Rheinmetall Defence German military spending hike becomes visible Order intake by region Order backlog by region Sales by region in €m in €m in % -2.9% -3.6% 3.1% 3,050 2,963 6,656 3,036 6,416 2,946 4% 4% 3% 2% 4% 4% 17% 22% 26% 20% 3% 46% 39% 6% 6% 19% 41% 29% 21% 16% 26% 17% 17% 17% 52% 39% 27% 29
Slide 27: Strong order backlog as a basis for further growth
Rheinmetall Defence Strong order backlog as a basis for further growth Order backlog end of year Order backlog for the following year in EUR million in EUR million -3.6% 6,656 6,416 1,817 >3,400 More than -6.9% 1,692 €600m of orders 3,039 turn sales intra- 2,810 year 1,579 +21.2% 1,914 +749 2,291 We
Slide 28: Continuing ROCE improvement
Rheinmetall Defence Continuing ROCE improvement ROCE in % Pre-tax WACC 20% (2017): 19.0% 18.8% 18.7% 15% 16.7% 13.4% 12.3% 10.6% 10.5% Group 11.8% 10% 10.7% 9.8% 4.7% 5% 3.9% 6.1% 0.3% 0% -4.6% -5% 2013 2014 2015 2016 2017 Group Defence Automotive © Rheinmetall AG / Corporate Presentation March 2018
Slide 29: Automotive Appendix
Rheinmetall Automotive AUTOMOTIVE APPENDIX © Rheinmetall AG / Corporate Presentation March 2018 29
Slide 30: Automotive with leading technology and market positions
Appendix: Rheinmetall Automotive Automotive with leading technology and market positions Key Figures Structure Sales by region Sales by division Sales: €2.9bn RoW Aftermarket Hardparts ASIA 4% Op. result: €247m 15% 12%-3% Pistons Large-bore Pistons Europe 32% Hardparts 45% w/o Op. margin: 8.7% 16% B
Slide 31: Drivers for growth
Appendix: Rheinmetall Automotive Drivers for growth Rising global fleet and regulatory restrictions are supporting our growth Light vehicle production Emission regulation million vehicles per year CO2 NOx 151 in g/km in mg/km +2% 124 -24% -56% 112 102 76 125 180 96 85 95 90 89 80 92 76 ICE 39 HEV 13
Slide 32: Our portfolio addresses the three basic drivers
Appendix: Rheinmetall Automotive Our portfolio addresses the three basic drivers Mechatronics Hardparts Aftermarket Coolant pumps Emission Bearings Pistons Exhaust gas recirculation Leverage platform Coolant pumps Increase regional presence Efficiency Lightweight products Variable Valve train Coolan
Slide 33: Strategic goal to reduce ICE exposure
Appendix: Rheinmetall Automotive Strategic goal to reduce ICE exposure Actual sales split Strategic sales split Combustion Engines Combustion Engines 67% LV 50% 13% Truck 40% LV 10% Truck E-Mobility ICE related: Electric Drive pistons Hybrid Drive 2017 engine blocks 2040 e.g.: EGRs E-engine housing
Slide 34: Strategic goals of Rheinmetall Automotive
Appendix: Rheinmetall Automotive Strategic goals of Rheinmetall Automotive STRATEGIC GOALS Increasing content per car Gaining powertrain neutrality More products at higher value as Minimize dependency on certain emission reduction, hybridization types of drives and electrification will require Incre
Slide 35: Rising global light vehicle production
Appendix: Rheinmetall Automotive Rising global light vehicle production Light vehicle production 2017-2021 CAGR in % / in million units Europa** Germany NAFTA Asia* +1.1% +0.5% +0.8% +4.0% Japan +2.1% China Global -1.5% 104 NAFTA 95 +3.1% 17 Europe 17 17 Germany 16 6 6 17 Asia 14 Japan 28 31 * witho
Slide 36: Governments will continue to demand reduction of CO2 emissions
Appendix: Rheinmetall Automotive Governments will continue to demand reduction of CO2 emissions CO2 emission in g/km India 113 122 117 Europe 95 97 2020 *Note that Japan has already exceeded its 2020 statutory target, as of 2013 Source: ICCT © Rheinmetall AG / Corporate Presentation March 2018 36
Slide 37: CO2 Reduction with Automotive Products – Gasoline Engine Vehicle
Appendix: Rheinmetall Automotive Efficiency CO2 Reduction with Automotive Products – Gasoline Engine Vehicle 130 g 95 g CO2/km CO2/km 2015 2021 -2 g CO2/km -2 g CO2/km Reference model -7 g CO2/km Lightweight design parts Electr. 1.4L 4-cylinder -3 g CO2/km Variable valve train EGR system TC DI gasol
Slide 38: LV Diesel exposure limited; powertrain independence is the target
Appendix: Rheinmetall Automotive LV Diesel exposure limited; powertrain independence is the strategic target Combined global engine production forecast* Automotive sales distribution by engine type** 100 30 LV Non Diesel units 80 25 Core Diesel 20 60 LV Diesel share in % Others 15 7% 40 18% 10 Fuel
Slide 39: Broad product range for alternative drive systems
Appendix: Rheinmetall Automotive Broad product range for alternative drive systems Enlarging the traditional product portfolio for combustion engines … + … by products for hybrid and electric engines Solenoid valves Actuators Structural components Electric throttle bodies Engine bearings Battery box
Slide 40: E-mobility competence underlined by contracts and initiatives
Appendix: Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions Contract volume for electric vehicles (EV)* Product Volume Contract duration (Ø) E-Taxi London Battery EV ~€300m 6 – 8 years Pump technology for pure electric taxis (Plugin) Hybrid EV
Slide 41: Electrification and downsizing require more sophisticated products
Appendix: Rheinmetall Automotive Electrification and downsizing require more sophisticated products Coolant pump Exhaust gas recirculation Valve, cooler, bypass and Mechanical >6x Electrical Valve >3x bypass actuator Oil pump Piston Mechanical >3x Variable Aluminum >3x Steel © Rheinmetall AG / Corpo
Slide 42: Automotive in China
Appendix: Rheinmetall Automotive Automotive in China 50/50 joint ventures Wholly Foreign-Owned Enterprises JV subsidiary with HASCO (SAIC group) (100% Rheinmetall Automotive) Castings (ATAG) Pistons (KSSP) Castings (KPSNC) Pumps (PHP) Aftermarket Pierburg Large-bore pistons Pumps (PMP Ch.) 2014 1997
Slide 43: More than 40 locations with high focus on local needs
Appendix: Rheinmetall Automotive Markets with different growth focus: More than 40 locations with high focus on local needs Germany USA Tamm Auburn Hills Berlin Greensburg Dormagen Greenville (Fountain Inn) Hartha Marinette Langenhagen Neckarsulm (Headquarter) Mexico Neuss Celaya Neuenstadt Papenbur
Slide 44: Summary
Appendix: Rheinmetall Automotive Summary Markets and Customers: Markets in better shape than anticipated, global LV production will grow by >2% Our global production and technology footprint will follow local needs Rheinmetall Automotive intends to outperform markets in future, too Performance and P
Slide 45: Defence Appendix
DEFENCE APPENDIX © Rheinmetall AG / Corporate Presentation March 2018 45
Slide 46: Defence is a leading supplier with an increasing international presence
Appendix: Rheinmetall Defence Defence is a leading supplier with an increasing international presence Key Figures Structure Sales by region Sales by division Sales: €3.0bn Weapon and Ammunition RoW Vehicle Germany Systems Weapon and Weapon and Protection -8% Ammunition Op. result: €174m NAFTA 26% Am
Slide 47: Strategic goals of Rheinmetall Defence
Appendix: Rheinmetall Defence Strategic goals of Rheinmetall Defence Strategic goals Entering new markets Enlarging internationalization Strategic partnerships to gain Form partnerships with local access to new markets suppliers to provide local content Target markets close to traditional markets, e
Slide 48: Defence is at the beginning of long-lasting market growth
Appendix: Rheinmetall Defence Defence is at the beginning of long-lasting market growth Defence budgets development 2017 – 2021 in % p.a. Europe Germany North America +3.5% +3.8% +1.0% MENA Asia +3.4% +4.9% Latin America Global Australia +3.8% +2.1% Global military expenditures +4.4% in USD bn 2017:
Slide 49: Demand for defence products has entered a long-term growth cycle
Appendix: Rheinmetall Defence Demand for defence products has entered into a long-term growth cycle Change in macro Investment Islamist Crimea Geopolitical environment backlog Terror Annexation tensions Rising budgets and growing project portfolios Germany announced Franco-German NATO returns to Aus
Slide 50: Drivers behind German's budget increase
Appendix: Rheinmetall Defence Drivers behind German’s budget increase “Turnarounds” in Germany Framework nation concept triggers standardization of Personnel: equipment Mid-term return to 220,000 soldiers Material: 100% equipment level and additional division Finance Increase of defence budget 23% f
Slide 51: German defence policy: Additional structural demand
Appendix: Rheinmetall Defence German defence policy: Additional structural demand of German army under discussion Vehicles – mid-to-long term potential Fox (400 vehicles) Boxer (300-400 vehicles) Trucks (> 10.000 vehicles) Puma (~250 vehicles) Equipment and ammunition – multi billion programs NNBS (
Slide 52: Equipment as % of defence expenditure
Appendix: Rheinmetall Defence Trend reversal enroute with few NATO members complying with targets NATO defence expenditure NATO expenditure as % share of GDP vs in % (at 2010 prices and FX rates) equipment share in defence expenditure in % 35 Slovak Republic Montenegro Luxembourg United Kingdom 5.0%
Slide 53: Vehicle portfolio is highly competitive and state-of-the-art
Appendix: Rheinmetall Defence Vehicle portfolio is highly competitive and state-of-the-art technology Successfull participation in domestic and international vehicle tenders Land 121 - AUS Puma - D Boxer – NL/D Trucks - D Large potential from multiple tenders (top projects only) Land 121 5b & Challe
Slide 54: 2017 marked by important strategic partnerships
Appendix: Rheinmetall Defence 2017 marked by important strategic partnerships Joint bid for MoTaKo /MoTIV Focus on cooperation regarding Complete solution consisting of the CH-53K project the successor system for the helicopters as well as further services in Scope German tactical air defence mainte
Slide 55: Army 4.0: MoTaKo / MoTIV
Appendix: Rheinmetall Defence Army 4.0: MoTaKo / MoTIV will propel the German Army into the digital future JV-share and core capabilities Rheinmetall (74.9%): Rohde & Schwarz (25.1%): Command systems Communication system Cross-functional operator architecture, IP based solution interface for voice a
Slide 56: MoTaKo/MoTIV: What supports our ambition?
Appendix: Rheinmetall Defence Army 4.0: MoTaKo/MoTIV: What supports our ambition? Exclusive Rohde &Schwarz is the key partner partnership for all communication equipment Top competency: Long-term partnership for all kind of Vehicle upgrades system upgrades Integrated Our infantry fighting vehicles c
Slide 57: Lockheed Martin partners with Rheinmetall
Appendix: Rheinmetall Defence Lockheed Martin partners with Rheinmetall to offer the “full package” Strategic teaming agreement Rheinmetall teams up with Lockheed Sikorsky to introduce the CH-53K as the heavy lift helicopter for the Bundeswehr Rheinmetall contributes: Longstanding experience in docu
Slide 58: Raytheon/Rheinmetall: System house approach for air defence
Appendix: Rheinmetall Defence Raytheon/Rheinmetall*: System house approach for ground based air defence Rheinmetall is a system provider for NNBS and Raytheon‘s national partner for the modernization of Patriot Rheinmetall is the only provider of supplier independent effector integration Rheinmetall
Slide 59: Defence industry in Europe
Appendix: Rheinmetall Defence Defence industry in Europe Governmental shareholding restricts room for cross-border consolidation 49.9% Kongsberg Big common armament programs could be 50% Nammo Patria catalysts for further consolidation Saab Cobham BAE Systems Chemring Rheinmetall CH PL TUR RO Rheinm
Slide 60: Growing at improved performance
Growing at improved performance GROWTH Long-term growth trend fully intact Defence business growth returns to double digit %-rate PERFORMANCE Profitability improved on product mix and higher leverage Lagging business in Electronic Solutions is stabilizing OUTLOOK Well on track to enter target corrid
Slide 61: Appendix
APPENDIX © Rheinmetall AG / Corporate Presentation March 2018 61
Slide 62: Select key data: outlook 2018
Appendix: Rheinmetall Group Select key data: outlook 2018 Rheinmetall Group In % of sales Automotive Defence Holding cost ~€30m (PY: €23m) Capex ~5.5 - 6.0% ~3.5 - 4.5% Tax rate <30% (PY: 27%) D&A ~5.5% ~3 - 3.5% Interest expense On previous year level R&D ~5 - 5.5% ~2 - 2.5% CTA funding €40m in Q1
Slide 63: ESG with high importance for Rheinmetall
Appendix: Rheinmetall Group ESG with high importance for Rheinmetall Environment Social Governance • Reduction of the ecological footprint • Clear statement against cluster munition • Transparency towards customer, • Decrease of energy needed • Promoting education and training investors and other st
Slide 64: Management Structure
Appendix: Rheinmetall Group Management Structure Board of Directors (Group) Peter S. Krause Horst Binnig Armin Papperger Helmut P. Merch Human Resources Board Member CEO CFO Management Board Management Board (Automotive) (Defence) Horst Binnig Olaf Hedden Peter S. Krause Armin Papperger Susanne Wieg
Slide 65: Group 2013 – 2017: Key figures
Appendix: Rheinmetall Group Group 2013 – 2017: Key figures In €m 2013 2014 2015 2016 2017 Balance sheet Total assets 4,866 5,271 5,730 6,150 6.186 Shareholder‘s equity 1,339 1,197 1,562 1,781 1,955 Equity ratio (in %) 27.5 22.7 27.3 29.0 31.6 Pension liabilities 891 1,121 1,128 1,186 1,080 Net finan
Slide 66: Segments 2012 – 2017 Key figures
Appendix: Rheinmetall Group Segments 2012 – 2017 Key figures AUTOMOTIVE DEFENCE 2013 2014 2015 2016 2017 in EUR million 2013 2014 2015 2016 2017 2,270 2,466 2,621 2,670 2,922 Order intake 3,339 2,812 2,693 3,050 2,963 392 416 445 459 520 Order backlog (Dec. 31) 6,050 6,516 6,422 6,656 6,416 2,262 2,
Slide 67: Quarterly development Group
Appendix: Rheinmetall Group Quarterly development Group Sales Operational results in EUR million in EUR million 1,698 1,722 171 169 1,459 1,349 1,366 1,034 1,011 114 115 731 97 612 682 85 24 46 50 664 737 728 684 712 67 60 62 57 63 -1 -4 -6 -6 -8 -10 -2 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 201
Slide 68: Free Cash Flow summary Group
Appendix: Rheinmetall Group Free Cash Flow summary Group Q4 FY Q1 Q2 Q3 Q4 FY Δ Q4 Δ FY in €m 2016 2016 2017 2017 2017 2017 2017 '16/'17 '16/'17 Group Net Income 116 215 28 51 43 130 252 14 37 Amortization / depreciation 67 228 57 55 59 70 241 3 13 Change in pension accruals - -14 -34 -3 1 -8 -44 -8
Slide 69: Quarterly development Automotive
Appendix: Rheinmetall Group Quarterly development Automotive Sales by division Operational results by division in EUR million in EUR million 737 728 712 67 684 63 664 62 60 57 425 407 382 407 379 37 47 43 46 40 249 251 232 236 222 22 16 17 13 14 84 83 93 95 87 6 7 9 9 8 -21 -20 -23 -25 -18 -5 -5 -5
Slide 70: Free Cash flow summary Automotive
Appendix: Rheinmetall Group Free Cash flow summary Automotive Q4 FY Q1 Q2 Q3 Q4 FY Δ Q4 Δ FY in €m 2016 2016 2017 2017 2017 2017 2017 '16/'17 '16/'17 Net income 49 165 46 50 25 44 165 -5 - Amortization / depreciation 40 133 32 32 37 39 140 -1 7 Change in pension accruals -1 -2 - - - - - 1 2 Cash Flo
Slide 71: Quarterly development Defence
Appendix: Rheinmetall Group Quarterly development Defence Sales by division Operational earnings by division in EUR million in EUR million 114 1,034 115 1,011 63 392 77 431 731 682 46 612 25 305 248 244 191 19 247 28 165 24 138 141 12 483 30 6 350 370 423 25 337 14 13 0 -67 -52 -3 1 -1 -1 -1 -85 -10
Slide 72: Free Cash flow summary Defence
Appendix: Rheinmetall Group Free Cash flow summary Defence Q4 FY Q1 Q2 Q3 Q4 FY Δ Q4 Δ FY in €m 2016 2016 2017 2017 2017 2017 2017 '16/'17 '16/'17 Net income 78 74 -16 8 32 76 100 -2 26 Amortization / depreciation 26 92 24 22 21 29 96 3 4 Change in pension accruals 1 5 -3 -6 2 -2 -9 -3 -14 Cash Flow
Slide 73: Glossary
Appendix: Rheinmetall Group Glossary bn billions ROCE Return on capital employed bp basis points RoW Rest of the World CAGR compounded average growth rate TLVS Tactical air defence system CTA Contractual trust agreement WACC Weighted average cost of capital D&A Depreciation & Amortization WOFE Wholl
Slide 74: Next events and IR contacts
Next events and IR contacts Events 2018 IR Contacts Franz-Bernd Reich Roadshow FY 2017 Frankfurt 20 March Head of IR Tel: +49-211 473-4718 Conference Bank of America Merril Lynch London 22 March Email: franz-bernd.reich@rheinmetall.com Roadshow FY 2017 Dublin / 26/27 March Dirk Winkels Edinburgh Sen
Slide 75: 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
Slide 76: © Rheinmetall AG / Corporate Presentation March 2018
© Rheinmetall AG / Corporate Presentation March 2018 76