Rheinmetall Group Corporate Presentation
December 2019
Rheinmetall Group
RHEINMETALL GROUP STRUCTURE.
Group performance indicator
Grow sales | ~8% op. |
around 8% | margin |
Targeted 2-4% | 30-35% |
Cash on sales | payout ratio |
RHEINMETALL
GROUP
Strategy roadmap | |
Organic | International |
growth | expansion |
Leading by | Targeted |
innovations | acquisitions |
AUTOMOTIVE Our heart beats for your engine | 2018 | DEFENCE Force protection is our mission | ||||
Op. margin | €2,930m | 48% | Sales | 52% | €3,221m | Op. margin |
8.9% | €265m | 53% | Oper. Result | 47% | €247m | 7.9% |
*€478m | Order backlog | €8,577m | ||||
11,710 | 51% | Headcount** | 49% | 10,948 | ||
* Short-term;**Headcount at capacities; | ||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 2 |
Rheinmetall Group
Q3 2019 Group commercial highlights
Weak Automotive compensated by Defence performance
Order backlog Sales Operating result EPSoFCF
€9.2bn | €1.5bn | €99 m | €1.33 | -€127 m | |
-1% | +2%* | +1% | -26% | -10% |
- Order backlog on high level
- Organic sales at constant exchange rates grew +2.5%* (reported 5.0%) to €1.5bn
- Operating result stable with significant shift between the segments
- EPS decline of 26% to €1.33 after PY €1.80 (including €0.47 real estate gain)
- Operating FCF down €11m yoy to -€127m including €15 m CTA funding
- FY Guidance specified
© Rheinmetall AG / Corporate Presentation Q3 2019 | 3 |
Rheinmetall Group
Q3 2019 Group commercial highlights
Operational improvement of sales and operating result
Sales | Operating result in €m | ||||||||
in €m | Operating margin in % | ||||||||
+5.0% | +1.0% | ||||||||
1,481 | 1 | -2 | 99 | ||||||
23 | |||||||||
98 | 2 | ||||||||
13 | |||||||||
1,411 | 34 | +2.2 % | +1.3% | -2.5% | |||||
+2.5 % | +0.9% | +1.6% | |||||||
6.9% | 6.7% | ||||||||
Q3 | Operational | FX | M&A | Q3 | Q3 | Operational | FX | M&A | Q3 |
2018 | 2019 | 2018 | 2019 |
- Earnings per share
in €
-26.1% | ||
1,80 | ||
0% | ||
1,33 | 1,33 | |
Q3 | Q3 | |
reported EPS | 2018 | 2019 |
adjusted EPS |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 4 |
Rheinmetall Group
Q3 2019 Group commercial highlights
Operating Free Cash Flow improved operationally
- Operating free cash flow bridge
in €m
41 | |
-116 | |
4 | |
-127 | |
3 | -19 |
-25 |
- EAT operationally improved, but compares to a PY including €30m real estate gain
- CTA funding of €15 m included in Pensions
- Strong support from working capital optimization in Automotive
-16 | |||||||
Q3 | EAT | D/A | Delta | Delta WC | Others | Capex | Q3 |
2018 | Pensions | 2019 | |||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 5 |
Rheinmetall Group
Q3 2019 Group commercial highlights
Financial KPI impacted by M&A transactions and pension topic
Net financial debt | Net gearing | |
in €m | Net debt in % of total equity | +31.8pp |
33.2
-31 | 1,4 | ||||||||||||||||
-660 | |||||||||||||||||
31.12.2018 | 30.09.2019 | ||||||||||||||||
31.12.2018 | 30.09.2019 | ||||||||||||||||
Equity bridge | |||||||||||||||||
in €m and equity margin in % | |||||||||||||||||
2.172 | |||||||||||||||||
170 | -153 | 1.990 | |||||||||||||||
-92 | |||||||||||||||||
-107 | |||||||||||||||||
Incl.: | |||||||||||||||||
Incl.: | |||||||||||||||||
32.1% | Actuarial changes | -192 | RMMV- | 27.9% | |||||||||||||
FX effects | +36 | transaction -111 | |||||||||||||||
01.01.2019 | EAT | OCI | Dividend | other | 30.09.2019 |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 6 |
Automotive
7
Rheinmetall Automotive
Q3 2019 Highlights: Automotive
Non-LV business and absence of equipment sales burdened the quarter
Quarterly sales and margin development | Comments on quarterly performance |
In €m and % | | ||||
708 | 731 | 714 | 727 | 659 | |
9,4 | | ||||
8,5 | |||||
7,3 | |||||
6,5 | | ||||
6,9 | |||||
Q3 | Q4 | Q1 | Q2 | Q3 | |
Sales decline of -6.9%(FX-adjusted-8.5%)
LV sales were down 3.4%, in line with Global LV production of -3.2%*
Non-recurring China equipment sales and weak non-LV business created pressure on sales
Low visibility until year's end remains the key issue
OFCF benefited from improved working capital management
In €m | Q3 2018 | Q3 2019 | ∆ | YTD 2018 | YTD 2019 | ∆ |
Sales | 708 | 659 | -6.9% | 2,199 | 2,099 | -4.6% |
Operating result | 60 | 43 | -28.3% | 193 | 144 | -25.4% |
Operating margin in % | 8.5% | 6.5% | -200 bp | 8.8% | 6.9% | -190 bp |
Operating Free Cash Flow | -2 | 6 | 400.0% | -16 | -8 | 50.0% |
Operating FCF / Sales | -0.3% | 0.9% | 120 bp | -0.7% | -0.4% | 30 bp |
*IHS Markit: 5 November 2019 | ||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 8 |
Rheinmetall Automotive
Q3 2019 Highlights: Automotive
Negative business development in all divisions and end markets
- Sales Automotive
in €m | ||
-6.9% | ||
708 | ||
659 | ||
387 | -7.5% | 358 |
251 | -9.2% | 228 |
92 | 0.0% | 92 |
-22 | -20 | |
Q3 18 | Q3 19 |
- Operating result Automotive
in €m
Margin | Margin | |
Q3 2019 | ||
Q3 2018 | -28.3% | |
8.5% | 60 | 6.5% | ||
9.8% | 38 | 43 | ||
-28.9% | ||||
27 | 7.4% | |||
6.0% | 15 | -60.0% | 6 | 2.8% |
9.8% | 9 | 0.0% | 9 | 9.2% |
-2 | 1 | |||
Q3 18 | Q3 19 |
Mechatronics
- Slow LV endmarkets
-
R&D for e-mobility
Hardparts - Underlying business flat y-o-y, equipment sale already in Q2 '19
- Operational issues at CZ plant persisted
Aftermarket
•Stable results in weak markets
Mechatronics Hardparts Aftermarket Consolidation/Others
© Rheinmetall AG / Corporate Presentation Q3 2019
9
Rheinmetall Automotive
Q3 2019 China Total Management View
Strong sales growth against the market trend
- Sales
in €m | +21.0% |
12 | 299 | ||||
247 | 33 | 7 | |||
+13.4% | +2.8% | 4.9% | 265 | ||
214 | Strong operation sales growth of 21% due to successful | ||||
33 | 34 | ramp ups, supported by M&A versus a contracting | |||
China LV production of -5.5% (YTD -10.6%)* | |||||
Q3 2018 | operational | FX | M&A | Q3 2019 | |
EBIT | JV | EBIT increased by 15.5% to €20m, but margin declined | ||||||||||||||||||||
+15.5% | WFOE | slightly from 7.0% to 6.7% due to adverse portfolio | ||||||||||||||||||||
in €m | ||||||||||||||||||||||
effects and ramp up cost for new products | ||||||||||||||||||||||
20 | ||||||||||||||||||||||
17 | ||||||||||||||||||||||
0 | ||||||||||||||||||||||
1 | ||||||||||||||||||||||
2 | ||||||||||||||||||||||
15 | +10.7% | +3.4% | +1.4% | 20 | ||||||||||||||||||
2 | ||||||||||||||||||||||
0 | Including 100% figures of 50/50 JV, consolidated at equity | |||||||||||||||||||||
Q3 2018 operational | FX | M&A | Q3 2019 | *IHS Markit: 5 November 2019 | ||||||||||||||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 10 |
Rheinmetall Automotive
Q3 2019 Highlights: Automotive
All end markets under pressure
Sales split LV / Non-LV | Sales split Non-LV |
in €m / in % | in €m / in % | ||||
-6.9% | |||||
708 | |||||
659 | |||||
161 | -4.0% | ||||
154 | 247 | ||||
237 | |||||
LV: | LV: | ||||
461 | |||||
246 | 422 | 101 | 96 | ||
239 | |||||
54 | 29 | 21 | 21 | ||
247 | 237 | 92 | 92 | ||
33 | 28 | ||||
Q3 2018 | Q3 2019 | Q3 2018 | Q3 2019 |
Delta | ||||||
absolute | in % | |||||
Diesel | -7 | -4.3% | -3.4% | |||
-7 | -2.8% | |||||
Gasoline | ||||||
other LV** | -25 | -46.5% | ||||
LV Business | -39 | -8.4% | ||||
Truck | -5 | -4.6% | -4.1% | |||
Large Bore | 0 | +1.9% | ||||
Aftermarket | 0 | 0% | ||||
Other* | -5 | -15.2% | ||||
Non-LV Business | -10 | -4.0% |
- Other: MIR, Industrie, Continuous casting
- Including €20m equipment sales
© Rheinmetall AG / Corporate Presentation Q3 2019 | 11 |
Rheinmetall Automotive
Q3 2019 Highlights: Automotive
Malware attack: Basic system environment reestablished, clean up continues
Malware attacked legal entities in the Automotive domain in the US, Mexico and Brazil
No infection of Defence systems detected
Production could be generally maintained, except warehouse for Aftermarkets business
Internal and external IT support as well as several
governmental agencies involved
Limited topline effect due to successful set up of work- arounds
EBIT effect expected at around €6-8m in Q4 2019 Higher logistic expenses
Consultant fees
Malware attack
© Rheinmetall AG / Corporate Presentation Q3 2019 | 12 |
12 |
Rheinmetall Automotive
IHS revised 2019 LV volumes repeatedly and provides weak outlook
- IHS 2019 forecast
IHS swings almost 8% within last 12 months
+2.0%
Oct | Nov Dec | Jan | Feb Mrc Apr May Jun | Jul | Aug Sep | Oct |
20182019
-5.8%
- IHS Mid-term outlook with growth on low level
?
+2.3% CAGR | ||||
-6.7% | 102 | |||
-5.8% | 100 | |||
97 | ||||
95 | 94 | |||
94 | ||||
92 | ||||
89 | 89 |
2017 2018 2019 2020 2021 2022 2023 2024 2025
Latest industry comments are very cautious short to mid-term!
© Rheinmetall AG / Corporate Presentation Q3 2019 | 13 |
Rheinmetall Automotive
Automotive impacted by special effects beyond market deterioration
Sales bridge | Operating result | |||||||||
in €m | in €m and % | |||||||||
731 | 69 | |||||||||
9.4% | ||||||||||
'19 Q3 | ||||||||||
level | ~5% | |||||||||
Q4 2018 | Market | GM Strike | Negative | Q4 2019 | Q4 2018 | Market | GM | Ramp | Malware | Q4 2019 |
decline | Ramp effect | effect |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 14 |
Rheinmetall Automotive
2019 reports biggest market decline post the financial crisis
Avg. cycle margin ~7.5% | ||||||||||||||||||||||||
Operating margins | -2.5% | 7.0% | 8.4% | 8.9% | ~6.5% | 5-7% | ~8% | |||||||||||||||||
2009 | 2013 | 2016 | 2018 | 2019 | 2020/21 | 2024/25 | ||||||||||||||||||
Market | Financial crisis | |||||||||||||||||||||||
market decline -12.2% | ||||||||||||||||||||||||
Growth in CAGR | 6.4% | -1.0% | -5.8% | 2.3% | ||||||||||||||||||||
Market trend | Recovery | Growth | Decline | Flat | Slow growth | |||||||||||||||||||
IHS November 2019 | ||||||||||||||||||||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 15 |
Rheinmetall Automotive
Early installation of self help in 2018 successful
- Self help measures to protect the margin
Efficiency
General cost reduction programs
Eliminate quality issues
improvements
Selective R&D
- Prioritization of R&D projects
- Reduction of external R&D
- But: Pedelec R&D affects P&L 2020 with €12-15m
HR Measures
- Reduction of leased workers (-40% per 10/2019)
- Reduction of time accounts and weekly working hours from 40-35
- Reduction of direct personnel cost (short-time work at 3 sites)
- Normal fluctuation (-1.6%) and recruitment stop
© Rheinmetall AG / Corporate Presentation Q3 2019 | 16 |
Defence
© Rheinmetall AG / Corporate Presentation Q3 2019 | 17 |
Rheinmetall Defence
Q3 2019 Highlights: Defence
Defence delivered as promised
Quarterly sales and margin development
In €m and % | 1.255 | |||
703 | 14,3 | 746 | 823 | |
629 | 7,8 | |||
6,3 | 1,4 | 8,1 | ||
Q3 | Q4 | Q1 | Q2 | Q3 |
In €m |
Order intake
Sales
Operating result
Operating margin in %
Operating Free Cash Flow
Operating FCF / Sales
Comments on quarterly performance
- Order intake of € 1.136m solid, including new VJTF orders
- Sales growth of 17.1% (FX adjusted 13.4%) driven by ES and VS and including €23m M&A effect
- Margin rose by 150 bp to 7.8%
- OFCF basically stable
Q3 2018 | Q3 2019 | ∆ | YTD 2018 | YTD 2019 | ∆ |
3,044 | 1,136 | -62.7% | 4,471 | 2,201 | -50.8% |
703 | 823 | 17.1% | 1,966 | 2,198 | 11.8% |
44 | 64 | 45.5% | 75 | 134 | 78.7% |
6.3% | 7.8% | 150 bp | 3.8% | 6.1% | 220 bp |
-98 | -104 | -6 | -508 | -328 | 180 |
-13.9% | -12.6% | 130 bp | -25.8% | -14.9% | 1,090 bp |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 18 |
Rheinmetall Defence
Q3 2019 Highlights: Defence
Double digit growth of operating result
- Sales Defence
in €m | |
+17.1% | |
823 | |
703 | 196 |
196 | +0.0% |
216 | |
170 | +27.1% |
395 | 461 |
+16.7% | |
-58 | -50 |
Q3 2018 | Q3 2019 |
- Operating result Defence
in €m | |||
Margin | +45.5% | Margin | |
Q3 2018 | Q3 2019 | ||
6.3% | 64 | 7.8% | |
10 | 5.3% | ||
44 | |||
5.1% | 10 | 20 | 9.3% |
4.7% | 8 | ||
7.6% | 30 | 35 | 7.6% |
-4 | -1 | ||
Q3 2018 | Q3 2019 |
Weapon and Ammunition
- Sales held back by missing export approvals
Electronic Solutions
- Solid execution in all BU
- Restructuring supportive
Vehicle Systems
- High order execution
- Stable margin
Weapon & Ammunition Electronic Solutions Vehicle Systems Consolidation
© Rheinmetall AG / Corporate Presentation Q3 2019 | 19 |
Rheinmetall Defence
Q3 2019 Highlights: Defence
Robust order intake comparing to extraordinary PY quarter
- Order intake by division
in €m
3,044 | ||
185 | -63% | |
241 | ||
Incl. | 1,137 | |
Australian | 2.808 | |
253 | ||
orders of | ||
~€2.5bn! | 345 | |
774 | ||
-190 | -235 | |
Q3 2018 | Q3 2019 |
Weapon and Ammunition
Electronic Solutions
Vehicle Systems
Consolidation
- Order backlog profile
in €bn change in %
8.8 | 8.7 | |||
~1.2 | ~2.3 | ~5.2 | ||
30.9.18 | 30.9.19 | Q4 2019E | 2020E | 2021E ff. |
© Rheinmetall AG / Corporate Presentation Q3 2019
20 |
Rheinmetall Defence
New record year ahead for Defence
- Defence sales and operating margin in €m and %
15 | +9% sales | ||
growth | |||
3.221 | |||
10 | |||
~9.5% 7.9%
5
0
20182019e
Sales Margin
4.000
3.000
2.000
1.000
0
- Growth across all three divisions
- Margin improvement continues
- Project pipeline is filled and diversified
Prepare for solid program execution
© Rheinmetall AG / Corporate Presentation Q3 2019 | 21 |
Rheinmetall Defence
Promising super cycle pipeline
USA:
Ammunition
Fuzes
OMGV
Green: booked business / black: potential
UK: | Sweden | |
MIV Boxer | Trucks | |
Challenger | ||
France: | ||
MGCS | Germany: | |
Trucks | | |
IDZ | |
VJTFPuma
80 Leopards 3. Boxer lot 2. Puma lot 2. IDZ lot Fox Boxer variants TEN (D-LBO) Indirect fire Ammunition
MGCS
Lithuania: | Boxer | |
Poland: | Leopard II | |
Hungaria: | Leopard, Howitzer, | |
IFV (wheeled/tracked) | ||
Czech Rep: | IFV (tracked) | |
Slovakia: | IFV | |
Bulgaria: | IFV (wheeled) | |
Romania: | IFV (wheeled) | |
Slovenia: | APC (wheeled) |
Australia: | |
Land 17 1 C.2 | Ammo |
Land 121 3a, 5b | Trucks |
Land 400 II | Boxer CRV |
Land 400 III | Lynx |
Simulation | M1 |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 22 |
Rheinmetall Defence
Profitable growth lasts into the next decade
- Operating margins
in %
11.7% | 6.7% | -0.4% | 5.0% |
Avg. cycle margin ~5.4%
Market
2010
2012 | |
Annexation | 2016 |
Crimea | 2014 |
Market trend Decline | Slow growth |
7.9% ~9.5% >9% 9-10%
2021/22 | |||
2020 | Super cycle intact | ||
| |||
2019 | | Favorable book to bill ratio | |
2018 Increase of global | | Steady top line growth | |
defence budgets | | Margin improvements across | |
the divisions | |||
Growth
© Rheinmetall AG / Corporate Presentation Q3 2019 | 23 |
Rheinmetall Group
Group margin guidance held stable
Sales
2018 | 2019e | |
Growth y/y in % at | Growth y/y in % at | |
constant FX | constant FX | |
GROUP | 6.1 | Slightly above 1 |
AUTOMOTIVE | 4.2 | Around -7 | ||
DEFENCE | 7.9 | Around 9 | ||
Operational growth at constant FX
© Rheinmetall AG / Corporate Presentation Q3 2019
Operating margin
20182019e
in %in %
8.0 | Around 8 |
8.9Around
6.5
7.9 | Slightly above | |
9.5 | ||
24
Rheinmetall Group
Sales growth and earnings improvement targeted
Mid-termMid-term
Sales growth | Operating margin |
AUTOMOTIVE
DEFENCE
Short-term setback to 5-7%
Flat to slow growth(incl. Pedelec -€12-15m in 2020); mid-term recovery to around 8%
6-8% | 9-10% |
Operational growth at constant FX
© Rheinmetall AG / Corporate Presentation Q3 2019 | 25 |
Automotive - Focus on innovation
26
Rheinmetall Automotive
AUTOMOTIVE WITH LEADING TECHNOLOGY AND MARKET POSITIONS.
Structure | |||
Key Figures | |||
Sales: | €2.9bn | Hardparts | |
Op. result: | €262m | Pistons | |
Op. margin: | 8.9% | Bearings | |
R&D: | €157m | ||
Mechatronics | |||
Capex: | €161m | Pump Technology | |
Headcount: | 11.710 | Solenoid Valves | |
Actuators | |||
Aftermarket
All figures refer to FY 2018
© Rheinmetall AG / Corporate Presentation Q3 2019
Large-bore Pistons
Castings
Automotive
Emission Systems
Commercial Diesel
Systems
Sales by region | |||||||
Sales by division* | |||||||
Asia | 1% | RoW | Aftermarket | Hardparts | |||
17% | 12% | ||||||
33% | |||||||
USMCA 16% | 45% | ||||||
Europe | |||||||
Germany | 21% | w/o | 55% | ||||
Germany | Mechatronics | ||||||
Sales by customer | Operating result by division* | ||||
Other | >10% Ford, | Aftermarket | Hardparts | ||
22% | VW | 13% 26% | |||
2-5% DAF, 41% | 5-10% | ||||
Volvo, PSA, | Renault/ | ||||
BMW, | 23 | Nissan, | |||
Cummins, | 14% | % | GM, FCA, | 64% | |
CAT/Perkins | Daimler | Mechatronics | |||
*unconsolidated
27
Rheinmetall Automotive
EuropeAsia ex.
-1% | 0% | China | ||||||||||||||||
USMCA | 18,6 | 17,9 | 18,2 | 27,3 | 25,8 | 27,0 | ||||||||||||
0% | China | |||||||||||||||||
17,0 | 16,7 | |||||||||||||||||
16,3 | 0% | |||||||||||||||||
World | 26,6 | 24,3 | 27,0 | |||||||||||||||
2018 | 2019e | 2022e | ||||||||||||||||
2018 | 2019e | 2022e | ||||||||||||||||
0% | ||||||||||||||||||
2018 | 2019e | 2022e | 94,2 | |||||||||||||||
94,2 | 88,8 | |||||||||||||||||
OTHERS | 2018 | 2019e | 2022e | |||||||||||||||
+3% | ||||||||||||||||||
4,7 | 4,6 | 5,3 | ||||||||||||||||
2018 | 2019e | 2022e | 2018 | 2019e | 2022e |
Source: IHS November 2019
28
Market trends
The growth drivers of Mechatronics remain strong
3+ | NT | |||||||||||||||
Efficiency | Emission | Electrification | Outside | |||||||||||||
E | (CO2 Reduction) | (Reduction) | powertrain | |||||||||||||
The innovation pipeline for all three trends is packed!
29
Rheinmetall Automotive
MECHATRONICS
EXHAUST CONTROL | FUEL TANK ISOLATION | THERMAL | HRB | ||
VACUUM PUMPS | MANAGEMENT | eCATHODE VALVE | |||
VALVE | |||||
VALVE GEN. 3 |
EGR MODULE | SC AIR SYSTEM | eWastegate | ELECTRICAL COOLANT | GASOLINE EGR | HIGH-VOLTAGE | eCC | E-MOTOR COOLING |
PUMP | COOLANT PUMP | ||||||
Actuator | |||||||
TURBO ACTUATOR VTG | EVAP | ELEC. BYPASS VALVE MULTI PURPOSE VALVE ELECTRICAL OIL PUMPS | CONTACTORS | THERMO MODULE FUEL CELL CONTROL VALVE |
ENGINE BEARINGS | 25% Share Carbon TT | |||
NON-ENGINE | ||||
STEEL PISTONS | ALU PISTONS | STRUCTURAL PARTS | E-Motor HOUSING | |
POLYMER BEARINGS | ||||
HARDPARTS
ENGINE BLOCKS | BATTERY BOXES |
ICE | EV / FUEL CELL |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 30 |
ELECTRIFICATION
at Rheinmetall Automotive
Life time
order value of €1bn booked*
* Rheinmetall Automotive and Joint Ventures, incl. BEV and Hybrid
31
Rheinmetall Automotive
Favorable increase of book to bill ratio due to rising order intake
4.000 | |||||
1.5x | 1.5x | 1.5x | 1.7x | 2.0x | |
Book to bill | |||||
3.000 | Sales | ratio | |||
Order intake | |||||
2.000 | |||||
1.000 | >50% of order | ||||
intake for | |||||
new business | |||||
0 | 2015 | 2016 | 2017 | 2018 | 9m 2019 |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 32 |
Innovative products for a variety of applications
High | El. Vapor | El. Climate | El. Cooling | High Voltage | Multi Purpose | Compact Door | ||
Voltage | Pump | Compressor | Pumps | Recirculation | Valve | Actuator | ||
Contactor | | | | Blower | | |||
| | | | |||||
| | | | | | | ||
Estimated | >€0.6bn | €700m | > €2.5bn | >€1.5bn | >4m vehicles | |||
Market | until 2026 | |||||||
potential | Examples | |||||||
in 2025 | ||||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 33 |
Development cost of € ~30m until 2022
CAGR 2018-30: | ||||||||||||
+10% | ||||||||||||
Start of | 9,0 | |||||||||||
8,0 | 8,5 | |||||||||||
Production | ||||||||||||
7,4 | ||||||||||||
6,4 | 6,9 | |||||||||||
5,4 | 5,9 | |||||||||||
4,4 | 4,9 | |||||||||||
3,8 | ||||||||||||
2,9 | 3,3 | |||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
34 |
From internal innovations project to market entry
One Rheinmetall | Design make | Production | ||||
award for Pedelec | over | setup | ||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Total Development cost ~€30m
First market | Presentation at | Start of |
presentation at | Eurobike | production |
Eurobike | Customer |
acquisition
-€12-15m | |
in 2020 | |
Group R&D expenses | Division R&D expenses |
35
Rheinmetall Automotive
Drivers for growth
Rising global fleet and regulatory restrictions are supporting our growth
- Light vehicle production grows
million vehicles per year
+1% | ICE | ||||
130 | HEV | ||||
95 | 94 | 106 | 113 | ||
2018 2020 2025 2030 2040
- BEV 2018-2025
million vehicles per year | 8.7 | 10.1 | ||||||
7.4 | ||||||||
5.8 | ||||||||
4.5 | ||||||||
3.2 | ||||||||
1.7 | 2.2 | |||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
IHS 07/2019 and company | ||||||||
estimates |
© Rheinmetall AG / Corporate Presentation Q3 2019
- Emission thresholds decrease
CO2 | NOx | |||
in g/km | in mg/km | |||
-24% | -56% | |||
125 | 180 | |||
95 | ||||
80 |
2015 2020 | EU5 | EU6 |
95g =
4.1l Gasoline or
3.6l Diesel
- Stricter emission testing
WLTP
Mainly EU!
Stricter testing | |
sets the | |
benchmark | |
even higher! | |
RDE |
36
Rheinmetall Automotive
Efficiency
CO2 - reduction with Automotive products - gasoline engine vehicle
130 g | 95 g |
CO2/km | CO2/km |
2015 | 2020 |
Reference model
1.4L 4-cylinder
TC DI gasoline engine (115kW) Approx. 138 g CO2/km in NEDC
-2g CO2/km
-7 g CO2/km | -2 g CO2/km | Lightweight | ||
design parts | ||||
Electr. | ||||
-3 g CO2/km | ||||
EGR system | ||||
-3 g CO2/km | Variable valve train | |||
-1 g CO2/km | Electr. control | |||
Tribology system | valve and variable | |||
coolant pump | ||||
Variable oil pump |
Rheinmetall Automotive products
© Rheinmetall AG / Corporate Presentation Q3 2019 | 37 |
Rheinmetall Automotive
TRUCK product portfolio | for truck compressors | |||
Permaglide bearings | ||||
Main coolant | and truck hydraulics | |||
pumps | ||||
Aluminum pistons | ||||
Auxiliary | ||||
coolant pumps | ||||
Steel pistons | ||||
Electrical oil pumps | Piston rings | |||
Cooperation with | ||||
Riken | ||||
Bushings for | ||||
injection pumps | ||||
Main-bearings | ||||
Connecting rod bearings | ||||
Coolant | Bearings for seat adjustments and doors | |||
valves | ||||
Variable Valve Control | EGR cooler modules | |||
and mixer modules | ||||
Exhaust gas flaps | Dual poppet valves | |||
Hydraulic valves | EGR reed valves | |||
Electrical | Pressure | High | ||
Cylinder | bypass | regulating | performance | |
valves | valves | actuators | ||
bore coating | ||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 38 |
Rheinmetall Automotive
Diversification
Increasing portfolio for non-LV applications
Trucks | Large bore pistons | Bearings & | Aftermarket | ||
continuous casting | |||||
Diverse portfolio for | E.g. ship and locomotive | Sanitary application | Global supply of spare parts |
truck applications | pistons | ||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 39 |
Rheinmetall Automotive
- Sales development by Division in €m
CAGR +10%
Mechatronics
Hardparts
Aftermarket
2016 | 2017 | 2018 | 2019e |
- Sales development by legal structure in €m
WFOE
Joint Venture 100% share
2016 | 2017 | 2018 | 2019e |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 40 |
Rheinmetall Automotive
CHINA
Motorservice | ||||
EA211 pistons | Heat sinks and shield covers | China | ||
Build up of | ||||
Logistic Centre | ||||
2018 | 2019 | 2020 | ||
Diverse | ||||
Divert-air | Electrical | Electrical | Heavy-duty | Heavy-duty |
valve | vapor pump | vacuum | Back pressure | Exhaust gas |
pump | valve | recirculation |
valve
© Rheinmetall AG / Corporate Presentation Q3 2019
EA888 pistons
2021
Variable | Variable oil |
oil | pump front |
pump | cover |
41
Rheinmetall Automotive
Automotive in China
50/50 joint ventures | Wholly Foreign-Owned Enterprises | JV subsidiary | |||||
with HASCO (SAIC group) | (100% Rheinmetall Automotive) | ||||||
Castings (KSHA) | Aftermarket | Pierburg | Large-bore pistons | Pumps (PMP Ch.) | |||
Pistons (KSSP) | Castings (KPSNC) | Pumps (PHP) | |||||
2014 | 1997 | 2001 | 2012 | 2008 | 2009 | 2013 | 2012 |
Engine blocks and | Pistons | Engine blocks, cylinder | Electrical and | Spare parts | EGR modules and electric | Large-bore pistons | Electrical and |
structural body parts | heads and structural | mechanical pumps | throttle bodies | mechanical pumps | |||
body parts | |||||||
Germany/ | China | China | China | ||||
Europe | |||||||
Sales China in €m | ||||||
871 | 934 | 972 | 1,003 | |||
WFOEs | ||||||
681 | ||||||
401 | 528 | |||||
JVs (100%) | ||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
EBIT China in €m | 76 | 79 | ||||
71 | ||||||
WFOEs | ||||||
53 | 53 | |||||
30 | 37 | |||||
JVs (100%) | ||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
KSHA: KS Huayu Alutech GmbH, Neckarsulm | KPSNC: | Kolbenschmidt Pierburg Shanghai Nonferrous Components Co., Ltd., Shanghai | PMP: Pierburg Mikuni Pump Technology (Shanghai) Corp., Shanghai | ||
KSSP: Kolbenschmidt Shanghai Piston Co., Ltd., Shanghai | PHP: | Pierburg Huayu Pump Technology Co., Ltd., Shanghai | |||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 42 |
HIGHLIGHTS
CHINA
Partner of local big players SAIC and HASCO
Biggest casting capacities in China - technology leader
Regulation (China 6) - provides substantial growth potential for mechatronics division
Strong demand for NEV products
China Story on track: product pipeline supports growth ambitions
43
Defence - at the beginning of a "super cycle"
44
Rheinmetall Defence
TOP PRODUCTS PER DIVISION.
WEAPON AND | ELECTRONIC | |
AMMUNITION | SOLUTIONS | |
MID & LARGE CALIBER AMMO | MISSION EQUIPMENT | |
MID & LARGE CALIBER WEAPONS | AIR DEFENCE & RADAR SYSTEMS | |
PROTECTION SYSTEMS | Simulation & Training |
- ACTIVE | |
- PASSIVE | |
- SOFTKILL |
© Rheinmetall AG / Corporate Presentation Q3 2019
VEHICLE
SYSTEMS HX-FAMILY
LOGISTIC VEHICLES
TACTICAL VEHICLES
Medium wheeled Medium tracked
Heavy tracked
45
Rheinmetall Defence
DEFENCE IS A LEADING SUPPLIER
WITH AN INCREASING INTERNATIONAL PRESENCE.
Key Figures
Sales: €3.2bn
Op. result: | €254m |
Op. margin: 7.9%
R&D: €75m
Capex: €101m
Headcount: 10,948
All figures refer to FY 2018
Structure
Weapon and Ammunition
Weapon and | Protection | |
Ammunition | Systems | |
Propulsion | ||
Systems |
Electronic Solutions
Air Defence & | Mission | |
Radar Systems | Equipment | |
Simulation and | Technical | |
Training | Publications |
Vehicle Systems
Logistic Vehicles | Tactical Vehicles |
Sales by region | ||||||
Sales by division* | ||||||
RoW | Germany | Weapon and | ||||
Aus/NZ | 8% | Ammunition | ||||
15% | 34% | 31% | ||||
USMCA 4% | 45% | |||||
Asia / | 20% | 19% | Vehicle | 24% | Electronic | |
Middle East | Systems | Solutions | ||||
Europe | ||||||
Order backlog by division | Operating result by division* | ||||
Weapon and | Other | Weapon and | |||
23% | Ammunition | Vehicle | Ammunition | ||
Systems | 39% | 44% | |||
54% | |||||
Vehicle | 23% | Electronic | Electronic | 17% | |
Systems | Solutions | Solutions | |||
*unconsolidated
© Rheinmetall AG / Corporate Presentation Q3 2019
46
Home Market UK
Joint venture - Strengthening the position in UK
EXPANSION OF PRODUCT PORTFOLIO
Current
BAE UK business | |
Armoured engineering vehicles and | |
bridge-laying tanks | + |
AS 90 self-propelled artillery system Force protection components
Services
7.500 MAN vehicles under service
Future
- Boxer Mechanized Infantry Vehicle (MIV)
500 vehicles @ €1.3bn
- Challenger 2 Life Extension Program potential order size €800-1.2bn
- Next generation of battle tanks
SALES 2020e: € ~200m
Rheinmetall Defence
Home market Australia
Successful establishment of a new home market
Military Trucks | JV Rheinmetall NIOA Munition | Simulation |
Land 121 35 / 5B (2013/2018) | 51% Rheinmetall (2017) | Simulation / Training for M1A1 |
EUR 2bn | Land 17: 155mm Munition: EUR 350m | Fighting Vehicles Technology |
- Major Munition Framework Contract: EUR 60m
- NEW Facility in Queensland
Boxer / Lance | Lynx | ||
Land 400 Phase 2 (2019) | Land 400 Phase 3 (2022/2023) | ||
EUR 2.1bn | EUR 5.6bn | JV Supashock | |
| Down selected | ||
MilVehCoE | 49% Rheinmetall (2017) | ||
Military Vehicle Center of Exellence | "Brain-Trust" | ||
Military Trucks | |||
Combat Vehicles | SALES 2020e: € ~330m | ||
Fleet-Service | |||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 48 |
Rheinmetall Defence
German defence budget investive expenses and Rheinmetall-share
in €m
8.263
6.011 6.063
5.327 | 5.419 |
5.025 |
Rheinmetall avg. 20%-25% share
Rheinmetall avg. 10%-15% share
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020* | 2021* | 2022* |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 49 |
Rheinmetall Defence
German Defence
NATO commitment key driver for German demand
Lead role in Very High Readiness Joint Task Force ( VJTF)
Bundeswehr | '19 | '23 | '27 | '31 | '32+ |
2016 | |||||
white paper | |||||
VJTF´19 | VJTF´23 | 1x Division | 3x Division | 3x Division | |
04/2018 | (1 Brigade) | (3x Brigade) | (8x Brigade) | (10x Brigade) | |
Concept | |||||
Bundeswehr | ~2.200 | ~9.000 | ~30.000 | ||
09/2018 | vehicles | vehicles | vehicles | ||
Capability | |||||
profile |
100% equipment and digitization
© Rheinmetall AG / Corporate Presentation Q3 2019 | 50 |
Rheinmetall Defence
German Defence
Drivers behind budget increase
"Turnarounds" in Germany
-
Personnel:
Mid-term return to 220,000 soldiers - Material:
100% equipment level and additional division - Finance:
Increase of defence budget 54% from 2018 to 2024
Enhanced future profile
- Anchor army for smaller neighbor armies
-
Leading role in "enhanced Forward Presence" in
Lithuania - Framework nation in "Very High Readiness Joint Task
Force as of 2019 - Currently 14 international mandates
© Rheinmetall AG / Corporate Presentation Q3 2019
Framework nation concept triggers standardization of equipment
Army 4.0: Rheinmetall integrates components to systems
51
Rheinmetall Defence
German Defence
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 (Short range air defence) | TLVS (Tactical air defence) | D-LBO (> €5 bn net) (MoTaKo) | Ammunition (~€2 bn net) |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 52 |
Rheinmetall Defence
EUROPEAN DEFENCE.
CURRENT OR EXPECTED TENDERS TACTICAL VEHICLES.
UK MIV &
Challenger upgrade
Lt
Pl
Cz
Sk
H
Slo
Puma/Lynx
Boxer
Mixed
Ru
Bg
- Drivers for European vehicle programmes
- Return to territorial and alliance defence
- Standardization of NATO equipment
- Modernization and upgrades
- Estimate for European tactical vehicles demand
(number of vehicles)
Germany | Rest of Europe | |
Tracked | ~250 | >600 |
Wheeled | 700-800 | >900 |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 53 |
Rheinmetall Defence
European Defence
Consolidation landscape
49.9%
Kongsberg
50%
Nammo Patria
Saab | |||||
Cobham | |||||
BAE Systems Chemring | Rheinmetall | PL | RO | HUN | CZ |
- Governmental shareholding restricts room for cross-borderconsolidation
- Big common armament programs could be catalysts for further consolidation
Rheinmetall's approach:
JV partnerships with companies in different |
nations instead of "putting all eggs in one |
basket" |
KMW/Nexter
Thales RUAG
Oto Melara
Aselsan
Sufficient organic growth potential, but |
suitable M&A transactions are possible |
<25% or not state-owned > 25% state-owned Rheinmetall
© Rheinmetall AG / Corporate Presentation Q3 2019
54
Rheinmetall Defence
Defence International
Creation of new hubs in 2018
CANADA | SKANDINAVIA | |
EASTERN EUROPE | ||
New | GREAT BRITAIN | |
POLAND | ||
USA | NETHERLANDS | |
New | ||
MIDDLE EAST | ||
NORTH AFRICA | ASIA |
SOUTH AFRICA
AUSTRALIA
55
Rheinmetall Defence
Innovations
Demand-driven product development and targeted cooperations
New logistical platforms | New tactical platforms | New business models |
Groundbreaking sub-systems | Innovative weapon and ammunition | New cooperations with |
Digitized command and reconnaissance | Sikorsky, Raytheon | |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 56 |
GROUP
APPENDIX
© Rheinmetall AG / Corporate Presentation Q3 2019 | 57 |
Appendix: Rheinmetall Group
Group 2014 - 2018: Key figures (as reported)
in €m | 2014 | 2015 | 2016 | 2017 | 2018 | ||||
Balance sheet | Total assets | 5,271 | 5,730 | 6,150 | 6,101 | 6,759 | |||
Shareholder's equity | 1,197 | 1,562 | 1,781 | 1,870 | 2,172 | ||||
Equity ratio (in %) | 22.7 | 27.3 | 29.0 | 30.7 | 32.1 | ||||
Pension liabilities | 1121 | 1,128 | 1,186 | 1,080 | 972 | ||||
Net financial debt | -330 | -81 | 19 | 230 | -31 | ||||
Net gearing (in %) | 27.6 | 5.2 | -1.1 | -12.3 | 1.4 | ||||
Income statement | Sales | 4,688 | 5,183 | 5,602 | 5,896 | 6,148 | |||
Operating result | 160 | 287 | 353 | 400 | 492 | ||||
Operating margin | (in %) | 3.4 | 5.5 | 6.3 | 6.8 | 8.0 | |||
EBITDA | 299 | 490 | 581 | 626 | 836 | ||||
EBIT | 102 | 287 | 353 | 385 | 518 | ||||
EBIT margin (in %) | 2.2 | 5.5 | 6.3 | 6.5 | 8.4 | ||||
EBT | 22 | 221 | 299 | 346 | 485 | ||||
Net income | 21 | 160 | 215 | 252 | 354 | ||||
Earnings per share | (in EUR) | 0.47 | 3.88 | 4.69 | 5.24 | 7.10 | |||
Dividend per share | (in EUR) | 0.3 | 1.1 | 1.45 | 1.70 | 2.10 | |||
ROCE (in %) | 3.9 | 10.1 | 12.3 | 13.8 | 17.1 | ||||
Cash flow statement | Free cash flow from operations | -182 | 29 | 161 | 276 | -35 | |||
Headcount | Employees (Dec 31) according to | 20,166 | 20,676 | 20,993 | 21,610 | 22,899 | |||
capacity | |||||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 58 |
Appendix: Rheinmetall Group
Segments 2014 - 2018 Key figures
AUTOMOTIVE | DEFENCE | ||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | in €m | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||
2,466 | 2,621 | 2,670 | 2,922 | 2,889 | Order intake | 2,812 | 2,693 | 3,050 | 2,963 | 5,565 | |||||||
416 | 445 | 459 | 520 | 478 | Order backlog (Dec. 31) | 6,516 | 6,422 | 6,656 | 6,416 | 8,577 | |||||||
2,448 | 2,592 | 2,656 | 2,861 | 2,930 | Sales | 2,240 | 2,591 | 2,946 | 3,036 | 3,221 | |||||||
184 | 216 | 223 | 248.8 | 262 | Operating result | -9 | 90 | 147 | 174 | 254 | |||||||
7.5 | 8.3 | 8.4 | 8.7 | 8.9 | Operating margin | (in %) | -0.4 | 3.5 | 5.0 | 5.7 | 7.9 | ||||||
295 | 332 | 356 | 366.8 | 420 | EBITDA | 17 | 175 | 239 | 268 | 403 | |||||||
184 | 216 | 223 | 227 | 265 | EBIT | -67 | 90 | 147 | 172 | 247 | |||||||
7.5 | 8.3 | 8.4 | 7.9 | 9.0 | EBIT margin (in %) | -3 | 3.5 | 5.0 | 5.7 | 7.7 | |||||||
158 | 167 | 149 | 154 | 161 | Capex | 76 | 96 | 95 | 89 | 87 | |||||||
34 | 96 | 105 | 106 | 26 | OFCF | -132 | -38 | 103 | 238 | -29 | |||||||
10,830 | 10,934 | 10,820 | 11,166 | 11,710 | Employees (Dec 31) according to capacity | 9,184 | 9,581 | 10,002 | 10,251 | 10,948 | |||||||
1,322 | 1,450 | 1,527 | 1,621 | 1,664 | Mechatronics | Sales | Weapon & | 977 | 881 | 1,112 | 1,175 | 1,056 | |||||
96 | 119 | 142 | 176 | 171 | EBIT | Ammunition | -4 | 74 | 108 | 117 | 121 | ||||||
7.3 | 8.1 | 9.3 | 10.9 | 10.3 | EBIT margin | -0.4 | 8.4 | 9.7 | 10.0 | 11.5 | |||||||
934 | 952 | 921 | 968 | 989 | Hardparts | Sales | Electronic | 705 | 759 | 745 | 691 | 839 | |||||
72 | 73 | 62 | 60 | 65 | EBIT | Solutions | -53 | 26 | 25 | 20 | 47 | ||||||
7.7 | 7.7 | 6.7 | 6.2 | 6.6 | EBIT margin | -7.5 | 3.4 | 3.4 | 2.9 | 5.6 | |||||||
269 | 285 | 305 | 359 | 367 | Aftermarket | Sales | Vehicle | 667 | 1,195 | 1,392 | 1,480 | 1,568 | |||||
26 | 27 | 27 | 33 | 36 | EBIT | Systems | -9 | 3 | 29 | 53.2 | 108 | ||||||
9.7 | 9.5 | 8.9 | 9.2 | 9.8 | EBIT margin | -1.4 | 0.3 | 2.1 | 3.6 | 6.9 | |||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 59 |
Rheinmetall technologies
as an answer to current threats and challenges
ONE
RHEINMETALL
AUTOMATION
NEXT SENSORS
DIGITIZATION
E-MOBILITY
NEW
PRODUCTS
ARTIFICIAL INTELLIGENCE
60
Rheinmetall Group
Our capital allocation policy is geared towards further growth
Funding of growth (organic and M&A)
9.4%
Dividend to shareholders (Payout ratio 30-35%)
level | (target level | |
Improvement of pension funding via CTA | ||
50-60%) | ||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 61 |
Appendix: Rheinmetall Group
Select key data: outlook 2019
Rheinmetall Group
In % (Previous Year)
Holding cost | ~€25-30m (€24m) |
Comparable level
AutomotiveDefence
Capex | 5.5-6% (5.5%) | 3.5-4.5%(3.1%) |
(w/o IFRS 16) | ||
~5.5% (5.3% | 3-3.5% (4.8% |
Tax rate
(27%)
D&A | reported, | reported, |
scheduled 5.2%) | scheduled 3.7%) |
Interest result | ~-€40m(-€33m) |
© Rheinmetall AG / Corporate Presentation Q3 2019
R&D | 5-6% (5.4%) | 2-2.5% (2.3%) |
(self-funded) |
62
Appendix: Rheinmetall Group
Debt
Typical seasonal increase of net debt amplified by M&A payout
Net financial debt | Debt composition and maturity profile |
in €m at quarter-end | in €m | ||||||||||||
Ʃ 1,055 | |||||||||||||
162 | Commercial | ||||||||||||
Papers | |||||||||||||
Other & | |||||||||||||
183 | Leasing | ||||||||||||
-31 | 161 | Bank loans | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025ff. | ||||
-171 | |||||||||||||
300 | Promissory | 53 | 28 | 25 | |||||||||
-387 | notes | 73 | |||||||||||
-514 | 122 | ||||||||||||
-660 | 250 | EIB loan* | |||||||||||
30.09.2018 | 31.12.2018 | 31.03.2019 | 30.06.2019 | 30.09.2019 | 250 | ||||||||
Q3/ | |||||||||||||
2019 | *€250 m EIB loan (0.962% coupon) maturing in August 2023 |
© Rheinmetall AG / Corporate Presentation Q3 2019 | 63 |
Appendix: Rheinmetall Group
More than 100 production sites and offices on all continents
Defence | Germany | UK | ||
USA | Netherlands | Norway | ||
Sites | Canada | Switzerland | Sweden | South |
Mexico | Austria | Poland | Africa | |
Italy |
USA | |||||
Mexico | |||||
Germany | |||||
Automotive | France | Spain | |||
Brazil | Italy | Czech Republic | |||
Sites | Malta | Turkey | |||
Romania | UK | ||||
© Rheinmetall AG / Corporate Presentation Q3 2019 |
Russia
Singapore
Saudi Arabia | Malaysia |
UAE | |
Australia | |
Japan
China
India
64
Appendix: Rheinmetall Group
Continuing ROCE improvement
- ROCE
in %
25%
20%
15%
10%
5%
0%
-5%
Pre-tax WACC (2017):
19.0% | 18.8% | 17,1% | 20,2% |
18,7% |
16.7% | 13,4% | 10.5% Group |
15,9% | ||
12.3% |
10.6%
10.7% | 11,8% | |||||||
9.8% | ||||||||
4.7% | 3.9% | |||||||
6.1% | ||||||||
0.3% | ||||||||
-4.6% | ||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||
Group | Defence | Automotive | |||||||
© Rheinmetall AG / Corporate Presentation Q3 2019 | 65 |
Appendix: Rheinmetall Group
Board remuneration based on three building blocks
Annual target salary (100%)
Fixum (60%) | Performance-related variable remuneration (40%) |
Twelve equal portions of monthly | Short term incentive |
payments |
Fringe benefits: | • KPI: | EBT, ROCE (each 50%) | |
• | Pension insurance (or comparable) | • Reference: Budget | |
• | Company car | • Range: | 0 - 200% |
• Escalators: | 0% - <70% - < 110% | ||
0% linear to max. 200% | |||
• Payout: | cash |
- Long-termincentive
- KPI: Average adjusted EBT of the last three years (EBT capped at €300m)
- Payout: In shares and cash* with 4 year lock-up period
*for related tax payments
© Rheinmetall AG / Corporate Presentation Q3 2019 | 66 |
Appendix: Rheinmetall Group
ESG
High importance for Rheinmetall
Environment
- Reduction of the ecological footprint
- Decrease of energy needed
- Selective use of raw materials
- "Road to 95" and E-mobility
- Our products increase fuel efficiency
- New e-bike,e-motor and battery pack
- Support of conservation
- Transformation of the former production site in Düsseldorf
Social
- Clear statement against cluster munition
- Promoting education and training
- Support of gender diversity
- Women in management
- Workforce
- Integration of refugees via apprenticeships
- Support of employee families
Governance
- Transparency towards customer, investors and other stakeholder
- Non-compliantbusiness behavior is unacceptable
- Zero tolerance of corruption and fraud
- Central Compliance Management System
- Employee awareness initiative
© Rheinmetall AG / Corporate Presentation Q3 2019
67
Next events and IR contacts
Next Events
Berenberg Conference, Pennyhill | 3 December 2019 |
Goldman Sachs Conference, London | 4 December 2019 |
Oddo BHF Conference, Lyon | 9 January 2020 |
Commerzbank GIS, New York | 13-15 January 2020 |
Baader Heleva, Toronto | 16 January 2020 |
Kepler Cheuvreux GCC, Frankfurt | 20-22 January 2020 |
Lampe Conference, London | 30 January 2020 |
FY Earnings release | 18 March 2020 |
- Quick link to documents
Corporate Presentation | Interim Reports |
© Rheinmetall AG / Corporate Presentation Q3 2019
- IR Contacts
Dirk Winkels
Head of IR
Tel: +49-211473-4749
Email: dirk.winkels@rheinmetall.com
René Weinberg
Senior Investor Relations Manager
Tel: +49-211473-4759
Email: rene.weinberg@rheinmetall.com
Rosalinde Schulte Investor Relations Assistant Tel: +49-211 473-4718
Email: rosalinde.schulte@rheinmetall.com
Annual Reports
68
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 2019.
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 o 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.
© Rheinmetall AG / Corporate Presentation Q3 2019 | 69 |
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Rheinmetall AG published this content on 03 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 December 2019 09:42:03 UTC