Rheinmetall AG · XETR:RHM
Rheinmetall — Investor Day (February 2021)
21 slides from Rheinmetall's investor day presentation, Feb 4, 2021
Slide 1: Taking Rheinmetall to the next level
Taking Rheinmetall to the next level Düsseldorf 04/02/2021
Slide 2: Agenda
IS NT V R EA ST TE O G RY U P D A T E Taking Rheinmetall to the next level AGENDA 03 GROWTH CATALYSTS FINANCIAL UPDATE 01 04 STRATEGIC VISION REALIGNMENT 02 05 MID-TERM GUIDANCE © Rheinmetall AG I 04.02.2021 2
Slide 3: Financial update 2020
0 S T1 R FA I TNE AG NY C U I AP LD AU TP ED A T E Financial update 2020 Defence Automotive • 2020 prelim. Sales of ~ € 3.7 bn • 2020 prelim. Sales of ~ € 2.15 bn • Operating margin around 11% • Operating result above € 25 m positive • High order intake of ~ € 6.4 bn • Volume nomination letters of ~
Slide 4: Management sets clear strategic objectives
0 S T2 R RA ET AE LG I YG N UMP DE AN TT E Management sets clear strategic objectives 1 Reduce Automotive exposure 2 Minimum profitability level requirement 3 Continuous portfolio management © Rheinmetall AG I 04.02.2021 4
Slide 5: Transformation process initiated
0 S T2 R RA ET AE LG I YG N UMP DE AN TT E Transformation process initiated Realignment Integration of of existing business Automotive holding • Disposal process of the piston business • Right-size the structure to support the business • Regrouping of business activities • Eliminate redundant functi
Slide 6: The new corporate structure
0 S T2 R RA ET AE LG I YG N UMP DE AN TT E The new corporate structure 2020 2021 Rheinmetall Group Rheinmetall Group Holding Holding Automotive Weapon & Electronic Vehicle Sensors & Materials & Defence Pistons Holding Ammunition Solutions Systems Actuators Trade Non-core business Weapon & Ammunition
Slide 7: Strong measures to improve the Automotive situation
0 S T2 R RA ET AE LG I YG N UMP DE AN TT E Strong measures to improve the Automotive situation Pistons decided non-core business Realignment of the core business Superb engineering and production capabilities form our innovation culture Find a better owner for Right-sizing the organization Leveragin
Slide 8: Sensors & Actuators: Focus on profitable growth
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Sensors & Actuators: Focus on profitable growth IHS Sensors & Historic performance (2015-2019) LV production* Actuators In million units Sales In € billion • Sales growth of 1.3% CAGR vs. flat global LV volumes growth* • 9.3% average operating marg
Slide 9: Sensors & Actuators: Three pillars of growth
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Sensors & Actuators: Three pillars of growth Innovative solutions for Growth in alternative Diversify into clean mobility powertrains (AP) new applications Tighter Regulation of fuel fumes Electrified Mobility Sustainability and Performance Electro
Slide 10: Sensors & Actuators: China JV clearly outperform market
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Sensors & Actuators: China JV clearly outperfom market IHS LV production* China JV (100% pro forma sales ) In million units; CAGR 2020-25 In € million; CAGR 2020-25 BEV Strong profitable growth of at equity Hybrid consolidated sales ICE +4.7% 29.4
Slide 11: Materials & Trade: Well positioned to capture opportunities
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Materials & Trade: Well positioned to capture opportunities Aftermarket Bearings Castings (Joint Ventures) Solid profitability Shift to non-ICE applications Technology leadership 5% CAGR 7% CAGR 7% CAGR ~440 ~300 ~1,100 ~340 ~800 ~200 2020e 2025p 2
Slide 12: Defence budgets demonstrate robustness despite Covid
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Defence budgets demonstrate robustness despite Covid 2021 2022 2023 Germany Australia UK* Hungary USA Stable Growing Growing Growing Stable Threat scenario • Russia and China defence Tender • Large vehicle programmes with temporary persists spendin
Slide 13: 10 years' order potential of ~€30 to ~€60 bn
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Competitive vehicles portfolio offers huge potential Infantry Main Wheeled Trucks fighting vehicles battle tanks vehicles • Puma • Leopard • 4x4 HU JV • HX-Family • Lynx • Challenger • 6x6 New Fox • Future trucks • MGCS • 8x8 Boxer ~€15 ̶ 40 bn ~€5
Slide 14: Hungary is a catalyst for our Lynx pipeline
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Hungary is a catalyst for our Lynx pipeline USA US Army Bradley Eastern replacement Europe ~4000 vehicles Australia ~ € 40 bn Slovakia and Tender: 2021-2023 Czech Land 400 Phase III Slovenia Start of Tender: Potential start of ~450 vehicles product
Slide 15: Vehicle Systems main driver for mid-term growth
0 S T3 R GA RT O W YT HU PC DA AT TA EL Y S T S E G Vehicle Systems main driver for mid-term growth 2020e Sales 2025 Targeted Sales ~€ 5.5 bn 27 % ~€ 3.7 bn Weapon & Ammunition 30 % 22 % Electronic Solutions 23 % Vehicle Systems 51 % 47 % % share based on unconsolidated sales distribution © Rheinmet
Slide 16: Stronger focus on Defence with ICE exposure below 20%
0 S T4 R SA TT RE AG TY E G U IP CD AV TI ES I O N Stronger focus on Defence with ICE exposure below 20% 2020e Sales 2025 Targeted Sales ~30% ICE exposure ~37% Non ICE ~9% ~15-20% ~28% ~€5.9 bn ~€8.5 bn ~10-15% Non ICE ICE and new applications ~63% ~70% Defence exposure Defence exposure © Rheinmetal
Slide 17: Commitment to our technological leadership
0 S T4 R SA TT RE AG TY E G U IP CD AV TI ES I O N Commitment to our technological leadership ONE Rheinmetall Passion for technology Re-organization to Leverage our core Focus on growth better fit our needs technological strengths business areas • Divest non-core business • Further integrate technol
Slide 18: ESG forms part of our corporate strategy
0 S T4 R SA TT RE AG TY E G U IP CD AV TI ES I O N ESG forms part of our corporate strategy Environment Social Governance 2035: CO² neutral 1 Responsible corporate Strict compliance citizen organization • Over next 2 years reduction of • Employee health & safety • Robust governance with strict water
Slide 19: Upgrading our financial targets for 2025
0 S T5 R M A TI DE G - TY E R UMP D GA U T EI D A N C E Upgrading our financial targets for 2025 Attractive growth profile Higher profitability Focus on free cash flow Sales target Margin target Cash to sales target* ~ € 8.5 bn ≥ 10% ~ 3-5% Passion for Performance © Rheinmetall AG I 04.02.2021 *OFCF
Slide 20: Passion for Technology
S T R A T E G Y U P D A T E PASSION FOR TECHNOLOGY. © Rheinmetall AG I 04.02.2021 20
Slide 21: Disclaimer
Disclaimer S T R A T E G Y U P D A T E 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