Conference Call H Düsseldorf August 4, 2016

Transcription

1 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 Conference Call Düsseldorf August 4, 2016 RHEINMETALL AG 2016

2 Rheinmetall Group Highlights Increased sales, strong order backlog, earnings progressing Sales Increased by 9%, FX-adjusted by 10% Order backlog Earnings Automotive Defence Outlook Further increase from EUR 7.1 billion to EUR 7.3 billion Up to EUR 103 million, margin raised from 3.3% to 4.0% Solid Q2 overcompensates sales decline of Q1 Strong upswing in sales and again strong order intake in Q2 Confirmed for group and segments 2

3 Rheinmetall Group Key figures ineur million / Sales 2,394 2, % EBITDA % Operational earnings % EBIT (reported) % EBIT margin in % pp EBT % Group net income % Earnings per share in EUR % Free cash flow from operations % Employees (June 30) 20,642 20, % 3

4 Rheinmetall Group Key figures Q per segment Rheinmetall Group in EUR million Q2 Q Q / Sales % EBITDA % EBIT (reported) % EBIT margin in % pp Automotive Sales % EBITDA % EBIT (reported) % EBIT margin in % pp Defence Order intake % Sales % EBITDA % EBIT (reported) % EBIT margin in % pp 4

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6 Rheinmetall Automotive Highlights Automotive gaining momentum after a soft start into the year Sales New orders Earnings China Growth in Q2 stabilizes H1 sales slightly above previous year s level Ramp-up of new products begin to show positive topline impact Margin of 8,6% in Q2 reached again the high level of the previous year Solid at-equity contribution from JVs in China 6

7 Rheinmetall Automotive Key figures in EUR million / Order intake % Order backlog (June 30) % Sales % EBITDA % EBIT % EBIT margin in % pp Free cash flow from operations Employees (June 30) 11,066 10, % 7

8 Rheinmetall Automotive Sales growth in Mechatronics continues Strong Q2 shift sales and earnings in H1 on previous year s level Sales Automotive in EUR million +1% 1,340 1,349 Operational earnings Automotive in EUR million 114-2% 112 Reasons for earnings development Mechatronics Strong sales drive margin Hardparts Decline of sales and earnings in Brazil and in the large-bore piston business Aftermarket Start-up costs of new factory in Ustí/CZ Mechatronics Hardparts Aftermarket Consolidation 8

9 Rheinmetall Automotive Automotive LV sales development H1 LV-sales above growth of global LV production Global LV production in million units Sales Automotive LV/Non-LV in EUR million 45,9 46,9 1,340 1,349 10,9 11, % 261 8,8 9,1 11,3 11,1 Global: +2.2% without China: +0.9% % 147 3,2 2, % ,7 12,4 H1 Europe Rest of the World NAFTA China Asia without China Source: IHS Automotive, July 2016 Non LV business Aftermarket LV business 9

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11 Rheinmetall Defence Highlights Strong performance in orders, sales and earnings Order intake Order backlog Soared by roughly EUR 500 million pushing the book-to-bill ratio to 1.4 Increased to EUR 6.9 billion Sales Up by EUR 200 million or 19% Earnings New products Trend of improving earnings continues; with H1 Defence is reaching the profit zone Launch of several new products on the Eurosatoryfair in Paris, e.g. tracked vehicle Lynx and 130mm cannon 11

12 Rheinmetall Defence Key figures in EUR million / Order intake 1,235 1, % Order backlog (June 30) 6,728 6, % Sales 1,054 1, % EBITDA % EBIT % EBIT margin in % pp Free cash flow from operations % Employees (June 30) 9,422 9, % 12

13 Rheinmetall Defence Sales increase in all divisions H1 earnings significantly improved Sales Defence in EUR million Operational earnings Defence in EUR million +19% 1, % 2 Reasons for earnings development 1, Weapon and Ammunition Higher sales in all business units Electronic Solutions Less favorable product-mix Vehicle Systems Higher sales, e.g. Puma and better capacity utilization Weapon and Ammunition Electronic Solutions Vehicle Systems Others/Consolidation 13

14 Rheinmetall Defence Increasing share of non-european order intake High order book coverage of mid-term future sales Order intake by region in EUR million Order backlog turning into sales in EUR million 1,751 6% Rest of the World 6,728 6,905 ~3,400 1,235 RoW 21% 36% Asia/ MENA 58% Asia/MENA ~1,500 ~2,000 21% Europe 20% Europe (w/o Germany) 21% 16% Germany June June e 2017e 2018e ff 14

15 Rheinmetall Defence Positive macro picture for defence industry Rising defence budgets in NATO countries German defence budget in EUR billion Increase of defenceexpenditures of NATO countries from 2014 to 2016 in % +6% +14% Increasing budgets in 22 of 28 NATO countries 1,2% GDP 36,6 36,9 37,9 39,2 32,4 33,0 34, Baltic states Poland Czech Republic Turkey Norway Italy Germany Netherlands Spain United Kingdom France United States 9% 8% 6% 6% 6% 5% 2% 2% 17% 16% 14% 50% Source: Federal Ministry of Finance, Federal budget 2017 Source: NATO, Defence Expenditures of NATO Countries

16 Rheinmetall Group 16

17 Rheinmetall Group Short-term perspective Outlook fiscal year 2016 confirmed Sales in billion Operational margin Group 5.2 ~ % ~ 6% Defence 2.6 ~ % 4.5-5% Automotive 2.6 ~ % ~ 8% Assumptions Key large-scale projects in Defence to be realized as scheduled, no significant one-offs Global automotive industry growing as forecast 17

18 Rheinmetall Group Disclaimer This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to Rheinmetall sfinancial condition, results of operations and businesses and certain of Rheinmetall splans and objectives. These forward-looking statements reflect the current views of Rheinmetall smanagement with respect to future events. In particular, such forward-looking statements include the financial guidance contained in the outlook for Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as will, anticipates, aims, could, may, should, expects, believes, intends, plans or targets. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. In particular, such factors may have a material adverse effect on the costs and revenue development of Rheinmetall. Further, the economic downturn in Rheinmetall smarkets, and changes in interest and currency exchange rates, may also have an impact on Rheinmetall sbusiness development and the availability of financing on favorable conditions. The factors that could affect Rheinmetall sfuture financial results are discussed more fully in Rheinmetall smost recent annual and quarterly reports which can be found on its website at All written or oral forward-looking statements attributable to Rheinmetall or any group company of Rheinmetall or any persons acting on their behalf contained in or made in connection with this presentation are expressly qualified in their entirety byfactors of the kind referred to above. No assurances can be given that the forward-looking statements in this presentation will be realized. Except as otherwise stated herein and as may be required to comply with applicable law and regulations, Rheinmetall does not intend to update these forward-looking statements and does not undertake any obligation to do so. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Rheinmetall AG or any of its direct or indirect subsidiaries

19 Appendix: Rheinmetall Group 19

20 Rheinmetall Automotive Key figures by division: Automotive in EUR million Sales 1, ,349 Mechatronics Hardparts Aftermarket Operational earnings Operational margin pp +8.5% +8.3% pp -1.6pp -1.9pp +8.7% +9.0% +9.8% +8.0% +8.2% +6.1% 20

21 Appendix: Rheinmetall Defence Key figures by division: Defence in EUR million +196 Weapon and Munition Electronic Solutions Vehicle Systems Sales 1,054 1, Operational earnings Operational margin -2.6% +2.8pp Figures before intrasegmental consolidation +0.2% +7.5pp +4.1% -3.4% -1.8pp +0.3% -1.5% +1.8pp -2.9% -0,9% 21

22 Appendix: Rheinmetall Group Cash flow statement: Group ineur million Q1 Q2 Q3 Q4 Q Q Q2 2016/ Group net income Amortization / depreciation Change in pension accruals Cash flow Changes in working capital and other items Net cash used in operating activities Cash outflow for additions to tangible and intangible assets Free cash flow from operations ±0 22

23 Appendix: Rheinmetall Automotive Cash flow statement: Automotive ineur million Q1 Q2 Q3 Q4 Q Q Q2 2016/ Net income Amortization / depreciation Change in pension accruals ± 0 Cash flow Changes in working capital and other items Net cash used in operating activities Cash outflow for additions to tangible and intangible assets Free cash flow from operations

24 Appendix: Rheinmetall Defence Cash flow statement: Defence ineur million Q1 Q2 Q3 Q4 Q Q Q2 2016/ Net income Amortization / depreciation Change in pension accruals Cash flow Changes in working capital and other items Net cash used in operating activities Cash outflow for additions to tangible and intangible assets Free cash flow from operations ±