RHEINMETALL AG THE TECHNOLOGY GROUP FOR SECURITY AND MOBILITY Conference Call FY Düsseldorf March 19, 2014 RHEINMETALL AG 2014
Rheinmetall Group at a glance RHEINMETALL 2015 DETERMINED OUR STRATEGIC AGENDA Transition year finalized in both sectors, recovery expected 2014 Group order backlog increased by 20% to record level of 6.5 billion Group sales decreased by 2% to 4,613 million, adjusted for FX effects at previous year s level Operational Group earnings (EBIT before special items) of 213 million exceeded outlook as of November Positive free cash flow from operations despite a weak earnings performance Dividend of 0.40 proposed, payout ratio of 53% 2
Rheinmetall Group Mid-term strategy program Rheinmetall 2015 First successful steps in Internationalization Defence: Order intake of 2.4 billion from non-european customers Automotive: Expansion of operations in China (sales +32%), Mexico (sales +38%) and the Czech Republic (sales +14%) Growth by products and innovation More than 400 million R&D/Capex invested for future growth Defence: Ramp-up of large innovative systems: Puma (Germany), Boxer (Netherlands) and Fox (Algeria) Automotive: Start of production of 19 new products with relevant sales contribution Cost efficiency All restructuring measures negotiated and initiated in More than 50% implemented regarding headcount 3
Rheinmetall Group Order backlog increased Earnings down due to weak performance in Defence Sales in million Order backlog in million 3,420 3,989 4,454 4,704 4,613 4,940 5,136 4,950 5,405 6,475 2009 2010 2011 2009 2010 2011 Operational earnings in million resp. margin in % EBIT in million 153 4.5% 289 7.2% 342 7.7% 268* 5.7% 213 4.6% 15 297 354 296* 112 2009 2010 2011 2009 2010 2011 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 4
Rheinmetall Group Earnings particularly affected by restructuring charges EPS at 0.75, dividend proposed at 0.40 EBT in million Net income in million 229 295 216* 174 225 173* 35 22-46 -52 2009 2010 2011 2009 2010 2011 Earnings per share in Dividend per share in 4.23 5.55 4.55* 1.50 1.80 1.80 0.75 0.30 0.40** -1.60 2009 2010 2011 2009 2010 2011 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) ** Proposal to the Annual General Meeting 5
Rheinmetall Group Capex and R&D at a high level Even in a difficult year more than 400 million invested in the future Capex* in million resp. in % of sales R&D (self-funded) in million 189 207 238 205 198 208 212 230 226 145 4.2% 4.7% 4.6% 5.1% 4.4% 41 38 35 39 29 2009 2010 2011 2009 2010 2011 R&D thereof capitalized * Including non-cash-out investments 6
Rheinmetall Group Cash flow statement Positive free cash flow from operations in despite weak earnings in million in million 183-234 173* 2.7%** 3 209-191 125 22-36 0.1%** 4 Net income Depr. DPensions Capex Decrease of working capital Free cash flow from operations Net income Depr. DPensions Capex Increase of working capital Free cash flow from operations * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) ** in % of sales 7
Rheinmetall Group Weak earnings burden free cash flow in Defence Free cash flow in Automotive significantly positive Free cash flow from operations Group in million Free cash flow from operations Defence in million 186 159 163 62 125 6-45 93 2009 2010 2011 Free cash flow from operations Automotive in million 76 89-39 4 3 40-25 2009 2010 2011 2009 2010 2011 8
Rheinmetall Group Transition phase finalized, restructuring program fully on track All planned measures in implementation Costs Costs Total reduction of employees until 2016 Combat Systems (esp. Tracked Vehicles) 17 15 240 Electronic Solutions (esp. Air Defence Zurich) 3 14 130 Wheeled Vehicles (esp. Logistic Vehicles) 0 22 230 Total Defence 20 51 600 Hardparts (esp. Pistons Thionville/Neckarsulm) 0 23 450 Mechatronics (esp. merging Neuss/Nettetal) 0 11 100 Motor Service 0 1 10 Total Automotive 0 35 560 Expected savings 2014 Full annual savings from 2015 15 40-50 10 20-25 Total Group 20 86 1,160 25 60-75 Additionally, further expenses of 15 million 5 million in Defence and 10 million in Automotive were booked in for strategic portfolio measures. Costs and savings in million 9
Rheinmetall Defence 10
Rheinmetall Defence at a glance HIGH SHARE OF ORDER INTAKE FROM NON-EUROPEAN CUSTOMERS Order intake increased by 406 million (+ 14%) to 3,339 million despite weak traditional markets International large-scale orders from non-european customers acquired Operational earnings declined by 85 million to 60 million Restructuring program on track, charges of 51 million booked New international sales offices opened, e.g. Saudi Arabia New joint venture with Ferrostaal started, accelerating Rheinmetall Defence s internationalization efforts 11
Rheinmetall Defence Defence in a transition year Sales declined, order intake at a record level Sales in million Order intake in million 1,898 2,007 2,141 2,335 2,155 3,153 1,977 1,831 2,933 3,339 2009 2010 2011 2009 2010 2011 Operational earnings in million resp. margin in % EBIT in million 215 226 11.3 11.3 211 9.9 145* 6.2 60 2.8 215 234 223 173* 4 2009 2010 2011 2009 2010 2011 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 12
Rheinmetall Defence Weak operational performance Earnings affected by lower sales and cost overruns Sales Defence in million Operational earnings Defence in million 2,335-180* 2,155 145-85 Combat Systems Electronic Solutions Wheeled Vehicles Consolidation/Others 1,136 1,027 22** 726 710 567 539-116 -121 119 2** 47-23 0 60 47 29-13 -3 Reasons for earnings development Combat Systems Lower sales in tracked vehicles and ammunition Cost overruns Electronic Solutions Lower sales in Air Defence Cost overruns Wheeled Vehicles Loss mainly generated in H1, H2 indicates improvement * Without FX effects: - 143 million ** 51% of drone business divested in Q2 13
Rheinmetall Defence Internationalization Increasing share of order intake received from growth regions Order intake by region in million resp. % +14% 3,339 2,933 24% 22% 46% 17% 11% 32% 28% Large-scale orders from growth regions (e.g. Australia, Indonesia, Qatar) overcompensate decreasing demand from established markets 27% 27% 54% 40% 72% System orders secure long-term relationship including service business Order intake includes components business like ammunition or weapon stations Germany Europe* Asia/Middle East Rest of the World * Excluding Germany 14
Rheinmetall Automotive 15
Rheinmetall Automotive at a glance AUTOMOTIVE OUTPERFORMS THE GLOBAL MARKET Growth trend continued: sales increased by 4%, adjusted for FX effects by 6% Operational earnings at a record level of 160 million Products for reducing emissions and fuel consumption are growth drivers Operations in China, Mexico and the Czech Republic expanded Restructuring program on track, charges of 35 million booked 16
Rheinmetall Automotive Sales and earnings Strong sales and operational earnings in spite of a flat European market Sales in million Sales China JVs (100%) in million 1,522 1,982 2,313 2,369 2,458 499 388 298 258 155 2009 2010 2011 2009 2010 2011 Operational earnings in million resp. margin in % EBIT in million 81-3.2 4.1 151 6.5 139* 5.9 160 6.5 81 151 139* 115-49 -187 2009 2010 2011 2009 2010 2011 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 17
Rheinmetall Automotive Top and bottom line growth Mechatronics pushes sales and operational earnings Sales Automotive in million Operational earnings Automotive in million 2,369 +89* 2,458 139** +21 160 Reasons for earnings development 1,087 1,085 57 51 Hardparts Unfavorable product mix Start-up costs Large-bore pistons China 1,091 264-73 1,171 268-66 69 25-12 77 28 4 Mechatronics Higher sales of 80 million and increase of R&D by 12 million Motor Service Improved earnings Hardparts Mechatronics Motor Service Consolidation/Others * Without FX effects: + 146 million ** figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 18
Rheinmetall Automotive Sales growth due to European and American markets Automotive benefits from balanced customer base Sales by region in million Sales by customer in % 2,369 Germany 549 +4% 2,458 Germany 576 Non-LCV business: 30% Ships/ Power plants/ MIR** Trucks/Others 6% 13% 16% VW/Porsche/Audi Asia (w/o China JVs) Rest of the world Europe* 1,142 Americas 441 25 213 71% 29% Europe* 1,195 Americas 455 22 211 72% 28% Aftermarket 11% 8% Others 7% 4% 5% 6% Daimler 5% 5% Fiat PSA BMW GM 14% Ford Renault/ Nissan * Excluding Germany ** MIR = Marine, Industry, Recreation 19
Rheinmetall Automotive Strong growth in non-lcv business Sales of truck business doubled within 5 years Sales Automotive and non-lcv sales in million Non-LCV sales and truck business sales in million 1,982 2,313 2,369 2,458 578 CAGR +13% 705 714 740 1,522 448 448 578 705 714 740 115 157 CAGR +19% 204 200 231 2009 2010 2011 2009 2010 2011 Rest of Automotive sales Non-LCV sales Rest of Non-LCV sales Truck business sales 20
Appendix: Rheinmetall Automotive Internationalization Joint ventures in China see another successful year LV production China in million +14% 11.4 15.2 15.8 16.9 19.3 2009 2010 2011 Sales Automotive China in million Yantai 159 155 4 264 306 258 298 6 8 +32% 528 401 499 388 13 29 JVs* WFOEs** Kunshan Shanghai 2009 2010 2011 Source: IHS Automotive (February 2014) * Rheinmetall Automotive owns 50% of the joint ventures, consolidated at equity ** WFOE = Wholly Foreign-Owned Enterprise 21
Rheinmetall Group MARKETS AND OUTLOOK 22
Rheinmetall Defence Looking at the markets Shift of budget growth from traditional markets to emerging markets Defence spending by region in US$ billion Europe 276 271 266 262 2014 2015 USA 664 582 575 535 2014 2015 South America 59 59 58 58 2014 2015 MENA* 108 121 125 126 2014 2015 Asia/Pacific 354 366 376 392 2014 2015 Rheinmetall focuses on the MENA region and Asia/Pacific for future growth. * MENA = Middle East and Northern Africa Source: IHS Jane s (March 2014), Rheinmetall team analysis 23
Rheinmetall Defence Weapon and ammunition business Recovery expected to begin later and to a lower extent Sales weapon and ammunition business in million Previous estimates 600 650-670 700-750 750-800 531 643 665 682 675 580 580 650 700 Order intake gap 40 60 60 Recurring business (framework agreements, e.g. propulsions) 400 300 320 Order backlog (e.g. Qatar, Indonesia) Sales 2008 2009 2010 2011 2014e 2015e 2016e 24
Rheinmetall Automotive Looking at the markets China still expected to grow rapidly, slight increase in Europe and the US Light vehicle production by region in million units Western Europe USA 10.1 10.9 11.3 11.6 2014 2015 13.6 13.6 13.9 14.4 2014 2015 India 3.8 3.6 3.8 4.3 2014 2015 China 16.9 19.3 21.3 23.2 2014 2015 Japan 9.2 8.9 8.2 7.9 2014 2015 Rest of the World 26.1 26.3 27.0 28.1 2014 2015 Source: IHS Automotive (February 2014) Rheinmetall focuses on China, India and the Americas for future growth. 25
Rheinmetall Automotive Automotive is expected to remain a growth market Continental shift in Rheinmetall s sales and staff figures Market and business expectations Rheinmetall Automotive -2016e USA Market +16% Sales Staff Mexico Market +28% Sales Staff Western Europe Market +8% Sales Staff Brazil Market +22% Sales Staff Eastern Europe Market +13% Sales Staff India Market +30% Sales Staff China* Market +48% Sales Staff * Including 100% of the JVs Source: IHS Automotive (February 2014) Rheinmetall will save costs in the established markets and expand its footprint in the growth markets. 26
Appendix: Rheinmetall Automotive Megatrend Protection of the environment Regulations as growth drivers of the powertrain technology CO 2 Fuel consumption EU USA China CO 2 limit g/km 130 75 178 102 160 112 2025 Downsizing/ Turbocharging Lightweight Design Powertrain Global automotive component market* CAGR 4.9 % 5.7 % NO X Nitrogen oxides EU USA China EURO 4 EURO 5 EURO 6 EPA 04 EPA 07 EPA 10 EURO 3 EURO 4 EURO 5 2005 2010 2015 Air Supply Exhaust-gas management Chassis Exterior Interior Infotainment 2016e 4.2 % 4.5 % 4.4 % 3.7 % Strongest growth in powertrain * Source: IHS AutoInsight 27
Rheinmetall Automotive Megatrend Protection of the environment Sales share of green technology products will increase to 60% Sales share Expected sales share 2016 Other sales Other sales 40% 60% 49% 51% Sales with products for reduction of emissions and fuel consumption Sales with products for reduction of emissions and fuel consumption 28
Rheinmetall Group Mid-term strategy program Rheinmetall 2015 The way forward in 2014 Internationalization Defence: Strengthening the international sales force and a non-european order intake of more than 50% Automotive: Further shift of existing and new products to sites in growth regions Growth by products and innovation Defence: Organic growth by system orders (e.g. Puma, Boxer), but delay of ammunition business recovery Automotive: Continuation of the strong growth in Mechatronics Cost efficiency Further execution of the restructuring program in order to generate full savings effects from 2015 onwards 29
Rheinmetall Group Outlook 2014 Top line growth and improvement of earnings Sales in billion Operational earnings in million 2014e 2014e Group 4.6 4.8-4.9 213 230-250 Defence 2.2 2.3 60 85-95 Automotive 2.5 2.5-2.6 160 165-175 Further non-operational expenses of 10 million expected, i.e. expected Group EBIT of 220-240 million Outlook based on assumptions macroeconomic environment stable global automotive industry growing ammunition markets stabilizing key large-scale projects in Defence to be realized as scheduled 30
Rheinmetall Group Mid-term targets out of Rheinmetall 2015 Margin targets Assumptions and drivers Defence 7-9% Recovery of ammunition markets Savings effects out of restructuring Improvement of project management Automotive 8% Recovery of European car production and strong growth in China Strong growth of Mechatronics above market average Savings effects out of restructuring 31
Appendix: Rheinmetall Group APPENDIX GROUP 32
Appendix: Rheinmetall Group Finance Sound equity ratio Equity (at year-end) in million Equity ratio in % Treasury shares (at year-end) in % of all shares 1,134 1,355 1,546 1,465 1,339 3.5 3.3 3.4 4.8 3.9 30% 30% 32% 30% 28% 2009 2010 2011 2009 2010 2011 33
Appendix: Rheinmetall Group Solid balance sheet High cash credit facilities and low financial debt Cash credit facilities (as of December 31, ) in million Net financial debt (at year-end) in million Net gearing in % 1,400 Bilateral bank facilities (up to 1 year) Syndicated loan (due December 2016) Promissory notes (due 2014) Bond (4% coupon, due 2017) 400 500 16 500 Financing frame 370 Q1 5-year-Ø net financial debt as of quarter end 456 531 Q2 Q3 80 Q4-4% -44 2009 130 138 98 76 10% 6% 8% 7% 2010 2011 * Net debt in % of equity 34
Appendix: Rheinmetall Group Solid balance sheet Pension liabilities reduced, current expenses almost stable Pension liabilities and discount rate* in million resp. in % Domestic pension payments in million 6.00 5.50 5.25 5.25 919 891 577 610 677 729 3.25 3.25 31 31 31 33 32 35 2008 2009 2010 2011 2008 2009 2010 2011 Discount rate Pension provisions (foreign and other) Cum. actuarial gains/losses Pension liabilities (domestic) * Discount rate for German pension liabilities of Rheinmetall 35
Appendix: Rheinmetall Group Key figures in million * D / Order intake 5,311 5,805 + 494 Order backlog 5,405 6,475 + 1,070 Sales 4,704 4,613-91 Operational earnings (EBIT before special items) 268 213-55 Special items (one-offs, restructuring costs) 28-101 - 129 EBIT (reported) 296 112-184 EBT 216 35-181 Group net income 173 22-151 Earnings per share in 4.55 0.75-3.80 Cash flow 356 231-125 Free cash flow from operations 125 4-121 Employees 21,767 21,081-686 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 36
Appendix: Rheinmetall Group Quarterly development Sales in million Operational earnings* in million +92 +7 1,429 865 962 363 1,100 471 1,030 429 1,521 892 146 114 31 31 43 46 31 39 153 112 44 564 599 629 601 629 1-43 -2-14 -5 2-4 -4-3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Defence Automotive Consolidation/Others * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 37
Appendix: Rheinmetall Group Cash flow statement in million * D / Net income 173 22-151 Amortization / depreciation 194 212 + 18 Change in pension accruals - 11-3 + 8 Cash flow 356 231-125 Changes in working capital and other items 3-36 - 39 Net cash used in operating activities 359 195-164 Cash outflow for additions to tangible and intangible assets - 234-191 + 43 Free cash flow from operations 125 4-121 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 38
Appendix: Rheinmetall Defence 39
Appendix: Rheinmetall Defence Global defence market Decreasing established markets, growth regions MENA and Asia/Pacific USA $ 582 billion Europe $ 271 billion Global market share 38% D / -12% Global market share 17% D / -2% Russia $ 69 billion Global market share 4% D / +7% South America $ 59 billion Global market share 4% D / +0% MENA* $ 121 billion Global market share 8% D / +12% Asia/Pacific $ 366 billion Global market share 24% D / +3% * MENA = Middle East and Northern Africa Source: IHS Jane s (March 2014), Rheinmetall team analysis 40
Appendix: Rheinmetall Defence Key figures Defence by division (operational before special items) Sales EBIT before special items* Drones (divested 30 June) Drones (divested 30 June) 2,335 2,313 22 145 143 2-180 -85 2,155 60 1,136-109 1,027 Combat Systems Electronic Solutions Wheeled Vehicles 748-38 Drones (divested 30 June) 726 710 22-72 -20 Drones 49 (divested 119 29 30 June) 47 47 2 567-28 +10 539-23 -13 Operational margin* -3.4pp 6.2% 2.8% -5.9pp 10.5% 4.6% -2.5pp 6.6% 4.1% +1.7pp -4.1% -2.4% Figures before intrasegmental consolidation * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 41
Appendix: Rheinmetall Defence Quarterly development Sales Defence in million Operational earnings Defence* in million +27-2 865 435 892 462 114 80 112 73 34 274 189-33 363 148 129 98-12 471 429 210 207 176 140 107 117-22 -35 265 217-52 38-3 -1-23 -7-13 0-43 7-4 1-9 -5 4-4 -4 1-5 13-8 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2014 Combat Systems Electronic Solutions Wheeled Vehicles Consolidation/Others * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 42
Appendix: Rheinmetall Defence Key figures in million * D / Order intake 2,933 3,339 + 406 Order backlog 4,987 6,050 + 1,063 Sales 2,335 2,155-180 Operational earnings (EBIT before special items) 145 60-85 Special items (one-offs, restructuring costs) 28-56 - 84 EBIT (reported) 173 4-169 Employees 9,623 9,193-430 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 43
Appendix: Rheinmetall Defence Cash flow statement in million * D / Net income 109-27 - 136 Amortization / depreciation 89 92 + 3 Change in pension accruals - 3 2 + 5 Cash flow 195 67-128 Changes in working capital and other items 58-54 - 112 Net cash used in operating activities 253 13-240 Cash outflow for additions to tangible and intangible assets - 90-58 + 32 Free cash flow from operations 163-45 - 208 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 44
Appendix: Rheinmetall Defence New joint venture with Ferrostaal started January 2014 Door opener and accelerator for further internationalization 50:50 Core capabilities: Project management, Plant engineering 200-300 million sales p.a., 200 employees Joint venture consolidated at equity Core capabilities: Expertise in the Defence business Medium- and long-term benefits for Rheinmetall 1 Accelerating the internationalization of Rheinmetall Defence, especially in markets to which Rheinmetall Defence had only limited access before, e.g. Latin America, Northern Africa 2 3 Meeting the growing demand for local defence technology infrastructure, esp. in emerging markets (e.g. turn-key plant) Improving Rheinmetall s capacities and capabilities in project management by experienced project managers 45
Appendix: Rheinmetall Automotive 46
Appendix: Rheinmetall Automotive Global automotive market Western Europe stagnating, China and the Americas growing USA 10.9 million units Western Europe 13.6 million units Global market share 13% D / +8% South America 4.5 million units Global market share 5% D / + 6% Global market share 16% D / +0% India 3.6 million units Global market share 4% D / -4% China 19.3 million units Global market share 23% D / +14% Japan 8.9 million units Global market share 11% D / -4% Source: IHS Automotive (February 2014) 47
Appendix: Rheinmetall Automotive Key figures Automotive by division (operational before special items) Sales 2,369 +89 2,458 Hardparts Mechatronics Motor Service -2 +80 1,087 1,085 1,091 1,171 +4 264 268 EBIT before special items* 139 +21 160-6 57 51 +8 69 77 25 +3 28 Operational margin* 5.9% +0.6pp 6.5% 5.2% -0.5pp 4.7% 6.3% +0.3pp 6.6% 9.5% +0.9pp 10.4% Figures before intrasegmental consolidation * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 48
Appendix: Rheinmetall Automotive Key figures in million * D / Sales 2,369 2,458 + 89 Operational earnings (EBIT before special items) 139 160 + 21 Special items (one-offs, restructuring costs) 0-45 - 45 EBIT (reported) 139 115-24 Employees 12,003 11,744-259 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 49
Appendix: Rheinmetall Automotive Quarterly development Sales Automotive in million Operational earnings Automotive* in million +65 564 599 629 601 629 250 268 262 273 267 283 288 302 285 296 31 12 18 31 10 16 +13 46 13 22 39 15 17 44 13 22-14 60 66-17 70-16 67-18 65-15 7-6 0 5 10 6 7 1 1 2 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Hardparts Mechatronics Motor Service Consolidation/Others * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 50
Appendix: Rheinmetall Automotive Cash flow statement in million * D / Net income 99 81-18 Amortization / depreciation 104 119 + 15 Change in pension accruals - 9-4 + 5 Cash flow 194 196 + 2 Changes in working capital and other items - 75 20 + 95 Net cash used in operating activities 119 216 + 97 Cash outflow for additions to tangible and intangible assets - 144-127 + 17 Free cash flow from operations - 25 89 114 * figures restated for retrospective application of IAS 19 Employee Benefits (revised 2011) 51
Appendix: Rheinmetall Automotive Financial diary March 19, 2014 Annual report FY May 6, 2014 Annual General Meeting May 8, 2014 Q1 2014 August 7, 2014 Q2 2014 52
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 s financial condition, results of operations and businesses and certain of Rheinmetall s plans and objectives. These forward-looking statements reflect the current views of Rheinmetall s management with respect to future events. In particular, such forward-looking statements include the financial guidance contained in the outlook for 2014. 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 s markets, and changes in interest and currency exchange rates, may also have an impact on Rheinmetall s business development and the availability of financing on favorable conditions. The factors that could affect Rheinmetall s future financial results are discussed more fully in Rheinmetall s most recent annual and quarterly reports which can be found on its website at www.rheinmetall.com. 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 by factors 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. 53