Rheinmetall : Q1 results Financial Reports

Rheinmetall in the first quarter of 2024 Profitability significantly increased

• Operating result improves by €50 million or 60.3% to €134 million
• Operating margin up significantly on previous year at 8.5% after 6.1%
• Consolidated sales grow by 16.0% to €1.6 billion
• Rheinmetall Backlog increases to more than €40 billion
• Forecast for 2024 confirmed

CONTENTS

3

4

RHEINMETALL IN FIGURES

BUSINESS PERFORMANCE

4 Significant events up to March 31, 2024

1. Business performance of the Rheinmetall Group

1. Business performance of the segments

1. Update to the risks and opportunities

1. Supplementary report
2. Outlook

16 FINANCIAL FIGURES

16 Consolidated income statement

1. Consolidated statement of comprehensive income
2. Consolidated statement of financial position
3. Consolidated statement of cash flows
4. Consolidated statement of changes in equity
5. Segment report
6. FINANCIAL CALENDAR

Rheinmetall in figures

Business performance

Financial figures

Rheinmetall in figures

KEY FIGURES

SALES / EARNINGS

Sales	€ million
Of which generated abroad	%
Operating result1,3	€ million
Operating result margin1,3	%
EBIT before PPA	€ million
EBIT3	€ million
EBIT margin3	%
EBT3	€ million
Earnings from continuing operations3	€ million
Earnings from discontinued operations3	€ million
Earnings after taxes3	€ million
ORDER INFORMATION
Booked Business	€ million
Frame Nomination	€ million
Frame Utilization	€ million
Order Intake	€ million
Rheinmetall Nomination	€ million
Nominated Backlog	€ million
Frame Backlog	€ million
Order Backlog	€ million
Rheinmetall Backlog (March 31)	€ million
CASH FLOW
Cash flow from operating activities	€ million
Cash flow from investments	€ million
Operating free cash flow	€ million
Of which continuing operations	€ million
Of which discontinued operations	€ million
STATEMENT OF FINANCIAL POSITION (March 31)
Equity3	€ million
Total assets3	€ million
Equity ratio3	%
Cash and cash equivalents	€ million
Total assets less cash and cash equivalents3	€ million
Net financial debt (-) / Net liquidity (+)2	€ million
HUMAN RESOURCES (capacity, March 31)
Germany	FTE
Foreign	FTE
Rheinmetall Group	FTE
Of which continuing operations	FTE
Of which discontinued operations	FTE
SHARES
Stock price (March 31)	€
Basic earnings per share from continuing operations3	€
Basic earnings per share3	€
Diluted earnings per share from continuing operations3	€
Diluted earnings per share3	€
Basic earnings per share pre PPA effects from continuing operations	€

Q1 2024	Q1 2023
1,581	1,363
76.7	77.7
134	83
8.5	6.1
138	86
108	78
6.8	5.7
86	70
55	50
(1)	4
54	54
620	1,230
-	370
(444)	-
3,757	1,504
3,933	3,104
8,461	8,741
7,596	3,750
24,140	15,703
40,197	28,194
(106)	(70)
(105)	(56)
(211)	(126)
(187)	(105)
(23)	(21)
3,681	3,245
11,589	9,328
31.8	34.8
515	1,579
11,074	7,749
(1,273)	(449)
13,883	12,820
14,715	12,831
28,599	25,651
25,344	22,227
3,255	3,424
521.00	275.00
1.13	1.21
1.10	1.30
1.13	1.21
1.10	1.30
1.66	1.37

1. The definition of the operating result performance indicator was modified with retrospective effect in the third quarter of 2023. The figures for the previous year have been restated accordingly.
2. Financial liabilities less cash and cash equivalents
3. The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.

RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

3

Rheinmetall in figures	Business performance	Financial figures
	Significant events up to March 31, 2024

Significant events up to March 31, 2024

Change in Group structure as of January 1, 2024

Effective January 1, 2024, Rheinmetall's civil business has been restructured, combining the previous Sensors and Actuators and Materials and Trade divisions to form the new Power Systems division. Rheinmetall is taking this step in order to bundle its business models and innovation in the civil business more effectively. Power Systems forms the organizational umbrella at Rheinmetall for key technological competencies in civil markets. These range from the traditional combustion engine and commercial business to new technologies such as electromobility and hydrogen, charging infrastructure and lightweight construction through to warm home heating systems.

Acquisition of Automecanica Mediaș SRL

At the beginning of 2024, Rheinmetall signed an agreement to acquire the majority interest in Automecanica Mediaș SRL, a Romanian manufacturer of military vehicles, and will hold 72.5% of the shares in the future. The other shares in the company will remain with private owners. The closing of the corresponding contractual agreement is subject to approval by the relevant authorities. The company will operate as Rheinmetall Automecanica SRL. With this acquisition, Rheinmetall is further expanding its position as a leading manufacturer of military vehicles and strengthening its activities in Central Europe in line with its strategy. The transaction was completed on April 30, 2024.

Disposal of all shares held in Shriram Pistons & Rings Ltd.

All shares in Shriram Pistons & Rings Ltd., India, still held by the Rheinmetall Group were sold on the Indian stock exchange in the first two months of fiscal 2024. The measurement of the shares at fair value had an effect of €4 million recognized in other net financial income until they were sold.

Acquisition of Dutch start-up REEQ B.V.

On March 15, 2024, Rheinmetall Defence Nederland B.V. acquired 100% of the shares in the Dutch start-up REEQ B.V. With its vehicles, REEQ B.V. has developed a new generation of mobility that combines tactical transport with a mobile energy source and is fully prepared for autonomy. Rheinmetall is thus expanding its portfolio of lightweight tactical vehicles and also taking the step towards hybrid technology with a fully electric drivetrain in a military vehicle.

Significant major orders

Rheinmetall delivers Skyranger air defence systems to Austria

Rheinmetall has been commissioned to deliver state-of-the-art Skyranger air defence systems in conjunction with the Austrian armed forces' expansion plan. The order has a volume in the mid-hundreds of million euro. Delivery will take place from 2026.

Major order for mobile air defence

The German armed forces have once again commissioned Rheinmetall for a major air defence project. Rheinmetall will supply the Skyranger 30 mobile air defence system to the German armed forces. The contract, which is worth €595 million, provides for the delivery of a prototype and a further 18 series vehicles. There is also the option for 30 further systems. The prototype is to be delivered before the end of 2024.

Delivery of Skynex air defence systems to European customer

Rheinmetall has been contracted to deliver Skynex air defence systems to a European customer. The systems enhance protection against threats from the air. The order has a value in the low hundreds of million euro. The deliveries will take place over the course of 2025.

International automotive manufacturer places order for innovative cooling and lubrication system

One of the world's largest automotive manufacturer has commissioned Rheinmetall to supply several million electric oil pumps. The order has a value in the low hundreds of million euro.

4 RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

Rheinmetall in figures	Business performance	Financial figures
	Significant events up to March 31, 2024

Divert-air valves for leading Asian automotive manufacturer

Rheinmetall's contract with an existing customer for the production of divert-air valves for various engine variants has been extended. The Group has been supplying the automotive manufacturer, which is one of the largest in Asia, with divert-air valves in series since 2019. Now the manufacturer has seamlessly extended this contract until 2032. This extension is valued at €100 million.

Core components for howitzers

Through Weapon and Ammunition and Vehicle Systems, Rheinmetall has been commissioned to deliver core components for 22 howitzers for the German armed forces. Among other things, the company will provide 22 155mm-caliber L52 weapons systems and the same number of chassis for the PzH 2000 howitzer. Following final system integration and commissioning at Rheinmetall in Unterlüß, the first of these artillery systems are due to be delivered to the German armed forces in the summer of 2025. This order has a total volume of €135 million for Rheinmetall.

RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

5

Rheinmetall in figures	Business performance	Financial figures
	Business performance of the Rheinmetall Group

Business performance of the Rheinmetall Group

Key figures Rheinmetall Group (continuing operations)

€ million		Q1 2024		Q1 2023		Change
Sales		1,581	1,363	218
Operating result1,2		134		83		50
Operating result margin1,2		8.5%		6.1%		2.3%-P
Operating free cash flow	(187)	(105)	-82

1. The definition of the operating result performance indicator was modified with retrospective effect in the third quarter of 2023. The figures for the previous year have been restated accordingly.
2. The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.

Sales exceed previous year's level

Consolidated sales increased by €218 million or 16.0% year-on-year to €1,581 million in the first quarter of fiscal 2024 (previous year: €1,363 million). Adjusted for currency effects, sales were 17.4% higher than in the previous year. The share of sales in Germany rose by 1.0% points year-on-year to 23.3% in the first three months of 2024.

Sales by region

€ million		Q1 2024			Q1 2023
Rheinmetall Group		1,581	1,363
1 Germany		369			304
2 Other Europe		767			607
3 North, Middle and South America		165			123
4 Asia and the Near East		185			172
5 Other regions		96			158

Rheinmetall Nomination rises significantly year-on-year

Rheinmetall Backlog includes the figures order backlog, frame backlog and nominated backlog. The frame backlog reflects the expected future call-offs from existing framework agreements for the security business, which are converted into order backlog when called off by the customer. Based on existing written agreements and framework contracts with customers, the nominated backlog figure shows the future call-offs expected for the civil business from these customer agreements. The sales resulting from the frame backlog and the nominated backlog may differ from the corresponding amounts depending on the final call-off quantities.

Rheinmetall Nomination consists of order intake, booked business and frame nomination, the flow indicator for security business. Similarly to the booked business indicator used for the civil business, frame nomination represents the expected value of new framework agreements concluded with customers. Like booked business, frame nomination does not yet represent binding customer orders, so actual call-off volumes and the resulting sales may vary. The frame backlog is converted into order backlog by way of the call-offs reported as order intake. Within Rheinmetall Nomination, this change is presented as frame utilization.

6 RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

Rheinmetall in figures	Business performance	Financial figures
	Business performance of the Rheinmetall Group

Rheinmetall Nomination increased by 26.7% to €3,933 million in the first quarter of fiscal 2024 (previous year: €3,104 million). The increase is due to orders from Germany, the Near East and Australia in particular. In addition, the Rheinmetall Expal Munitions companies in particular contributed to growth. The key indicators of booked business and frame nomination were down year-on-year in the first quarter of 2024.

Rheinmetall Nomination

3+4	3+4
	2
1	1
Q1 2024	Q1 2023

Rheinmetall Nomination

€ million		Q1 2024		Q1 2023		Change
1	Booked Business		620	1,230	-609
2	Frame Nomination		-		370		-370
3	Frame Utilization		(444)		-		-444
4	Order intake		3,757		1,504		2,253
Rheinmetall Nomination		3,933		3,104		829

Rheinmetall Backlog

3	3
2		2
1	1

Q1 2024

Q1 2023

Rheinmetall Backlog

€ million		Q1 2024		Q1 2023		Change
1	Nominated Backlog		8,461		8,741		-280
2	Frame Backlog		7,596	3,750	3,846
3	Order Backlog		24,140		15,703		8,437
Rheinmetall Backlog		40,197		28,194		12,003

Operating result up on previous year

In light of the acquisition of the munitions manufacturer Expal Systems S.A.U., which was completed on July 31, 2023, the definition of the operating result performance indicator was modified to take account of the effects of the purchase price allocation for this transaction. Starting from the third quarter of 2023, the operating result is therefore calculated as earnings before interest and taxes (EBIT) adjusted for remeasurement effects in connection with purchase price allocation (PPA effects) and special items resulting from corporate transactions, restructuring and other significant items unrelated to operations or the accounting period. The prior-period figures have been restated accordingly.

RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

7

Rheinmetall in figures	Business performance	Financial figures
	Business performance of the Rheinmetall Group

The operating result amounts to €134 million as of March 31, 2024 and was therefore up by €50 million or 60.3% on the previous year's figure of €83 million. The improvement in the operating result relates in particular to the contribution by the Rheinmetall Expal Munitions companies acquired as of July 31, 2023. The Group's operating margin climbed to 8.5% (previous year: 6.1%).

Special items and PPA effects Q1 2024

		Operating		Corporate		Restruc-				Special
€ million		result		transactions		turing		Others		items		PPA effects		EBIT
Rheinmetall Group	134	4	-	-	4	(30)	108
Vehicle Systems	38	-	-	-	-	(1)	37
Weapon and Ammunition		53		-		-		-		-		(25)		28
Electronic Solutions		17		-		-		-		-		(1)		16
Power Systems	31	-	-	-	-	-	31
Others/consolidation	(6)	4	-	-	4	(3)	(5)

Special items and PPA effects Q1 20231

		Operating		Corporate		Restruc-				Special
€ million		result2		transactions		turing		Others		items		PPA effects		EBIT
Rheinmetall Group	83	-	-	3	2	(8)	78
Vehicle Systems	43	-	-	-	-	(1)	42
Weapon and Ammunition	23	-	-	-	-	(1)	22
Electronic Solutions	12	-	-	-	-	(1)	12
Power Systems4		24		-		-		-		-		-		24
Others/consolidation3	(19)	-	-	3	2	(5)	(22)

1. The figures for the previous year have been restated to take into account the amended reporting structure due to the changes made to the Group structure as of October 1, 2023.
2. The definition of the operating result performance indicator was modified with retrospective effect in the third quarter of 2023. The figures for the previous year have been restated accordingly.
3. Some figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.
4. Sensors and Actuators and Materials and Trade were combined to form Power Systems effective January 1, 2024.

Operating free cash flow decreases in the first quarter of 2024

The operating free cash flow from continuing operations declined by €82 million year-on-year to €-187 million in the first quarter of 2024 (previous year: €-105 million). The deterioration in operating free cash flow relates in particular to the increase in inventories and cash capital expenditure.

Derivation of operating free cash flow - continuing operations1

€ million		Q1 2024		Q1 2023
Earnings from continuing operations (after taxes)		55	50
Amortization, depreciation and impairments		91		63
Allocation of CTA assets to secure pension and partial retirement obligations		(3)		(3)
Changes in working capital and others		(231)		(163)

Cash flows from operating activities		(88)	(53)
Investments in property, plant and equipment, intangible assets and investment property		(99)		(53)
Operating free cash flow (continuing operations)		(187)		(105)

1 The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.

8 RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

Rheinmetall in figures	Business performance	Financial figures
	Business performance of the Rheinmetall Group

Earnings per share

As a result of the convertible bond issued in February 2023, diluted earnings per share are calculated in addition to basic earnings per share. The calculation of diluted earnings per share is based on the assumption that all potentially dilutive instruments are converted into ordinary shares at the time of issue, resulting in an increase in the number of shares. At the same time, earnings after taxes are adjusted by the effect on earnings of these instruments, such as interest costs.

Diluted earnings per share are calculated as follows:

Derivation of diluted earnings per share

Earnings after taxes in € million - Rheinmetall AG

shareholders1

Adjustment for interest expense in respect of the convertible bond in € million

Tax effects on the adjustment for interest expense in respect of the convertible bond in € million

Diluted earnings after taxes in € million - Rheinmetall AG

shareholders1

Weighted number of shares in millions - basic

Continuing	Discontinued		Continuing	Discontinued
Operations	Operations	Q1 2024	Operations	Operations	Q1 2023
49	(1)	48	53	4	56
10	-	10	6	-	6
(3)	-	(3)	(2)	-	(2)
56	(1)	54	57	4	60
	43.42			43.38

Effect from the potential conversion of the convertible bond
in millions			3.22				1.93
Weighted number of shares in millions - diluted			46.64				45.32
Basic earnings per share1		€ 1.13	€ (0.03)	€ 1.10		€ 1.21	€ 0.09		€ 1.30
Diluted earnings per share1		€ 1.20	€ (0.03)	€ 1.17		€ 1.26	€ 0.08		€ 1.34
Adjusted diluted earnings per share (due to antidilutive
effect)1	€ 1.13	€ (0.03)	€ 1.10		€ 1.21	€ 0.09		€ 1.30

1 The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.

As diluted earnings per share from continuing operations exceeds basic earnings per share from continuing operations, there is an antidilutive effect in accordance with IAS 33.43. As a result, diluted earnings per share are adjusted to basic earnings per share.

Net assets and financial position

As of March 31, 2024, the Rheinmetall Group's total assets declined by €118 million as against December 31, 2023 to €11,589 million. The ratio of non-current assets to total assets is at a similar level to the end of fiscal 2023 at 40.0% as of March 31, 2024 (December 31, 2023: 39.4%).

The equity ratio rose slightly as against the end of fiscal 2023 to 31.8% as of March 31, 2024 (December 31, 2023: 31.1%) as a result of the slight decrease in total assets. Net financial debt from continuing operations increased to €-1,273 million as at the end of the first quarter of 2024 (December 31, 2023: €-1,063 million). The change is essentially due to the negative operating free cash flow.

Asset and capital structure

€ million		3/31/2024		%		12/31/2023		%
Non-current assets		4,636	40	4,615	39
Current assets		6,953		60		7,092		61
Total assets		11,589		100		11,707		100
Equity		3,681		32		3,643		31
Non-current liabilities		2,589	22	2,605	22
Current liabilities		5,319		46		5,459		47
Total equity and liabilities		11,589		100		11,707		100

RHEINMETALL QUARTERLY STATEMENT 2024 | Q1

9

Rheinmetall in figures	Business performance	Financial figures
	Business performance of the segments

Business performance of the segments

Vehicle Systems

Key figures Vehicle Systems1

€ million		Q1 2024		Q1 2023		Change
Sales		493	462	31
Rheinmetall Nomination		929		1,229		-301
Frame Nomination		-		370		-370
Frame Utilization		(138)		-		-138
Order Intake		1,067		859		208
Rheinmetall Backlog (March 31)		16,866	12,658	4,208
Frame Backlog		3,266		2,633		633
Order Backlog		13,600		10,026		3,575
Operating result2		38		43		-5
Operating result margin2		7.7%		9.2%		-1.5%-P
Capital expenditure		21	76	-55
Operating free cash flow		(310)		(95)		-215

1. The figures for the previous year have been restated to take into account the amended reporting structure due to the changes made to the Group structure as of October 1, 2023.
2. The definition of the operating result performance indicator was modified with retrospective effect in the third quarter of 2023. The figures for the previous year have been restated accordingly.

Vehicle Systems sales amounted to €493 million in the first three months of 2024, €31 million or 6.7% higher than the prior-year figure. The increase in sales is attributable in particular to projects for the delivery of tactical vehicles.

Rheinmetall Nomination decreased by €301 million year-on-year to €929 million. The largest single order in 2024 is the service contract already issued for the Boxer heavy weapon carrier, which is worth more than €620 million. Several major orders (in particular the Leopard 2 upgrade for Norway and the Puma infantry fighting vehicle upgrade for Germany) and a frame nomination for trucks in Austria were acquired in the previous year.

The operating result deteriorated from €43 million to €38 million in the first quarter of 2024. The development in the operating result is essentially due to the decline in high-margin orders compared to the previous year. At 7.7%, the operating margin is down on the prior-year figure of 9.2%.

Investment amounted to €21 million in the first three months of 2024, down by €55 million on the prior-year figure of €76 million. The decline is essentially due to leases agreed in the previous year for plant and equipment to expand capacity.

The operating free cash flow declined by €215 million to €-310 million. This results from the increase in inventories in particular.

10 RHEINMETALL QUARTERLY STATEMENT 2024 | Q1