AI Terminal
HENSOLDT AG
Earnings Release • Nov 6, 2024
714_ip_2024-11-06_2dee8ad7-f17e-4012-aa90-667bac54c2c5.pdf
Earnings Release
Open in ViewerOpens in native device viewer
HENSOLDT
9M 2024 Results - Analyst \& Investor Presentation
Taufkirchen, $6^{\text {th }}$ of November 2024
Christian Ladurner, CFO
Detect and Protect
Disclaimer
This presentation and the information contained herein are for information purposes only and should not be treated as investment advice or recommendation. It is not, and nothing in it should be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any commitment or contract whatsoever. This presentation does not constitute a prospectus in whole or in part. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without prior written consent of HENSOLDT. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state of the United States, and may not be offered, sold or otherwise transferred in the United States absent registration or pursuant to an available exemption from registration under the Securities Act.
Certain financial information including financial information as of and for the period ended September 30, 2024 is unaudited.
The report is denominated in Euro (€). All amounts in this report are rounded to million or billion Euros. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. This presentation contains certain supplemental financial or operative measures that are not calculated in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") or any other generally accepted accounting principles, and are therefore considered non-GAAP measures. We believe that such non-GAAP measures, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance the understanding of our business, results of operations, financial position or cash flows. There are, however, material limitations associated with the use of non-GAAP measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-GAAP measures used by us may differ from, and may not be comparable to, similarly titled measures used by other companies.
The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. HENSOLDT does not accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable law or regulation of any jurisdiction which may not lawfully be disclaimed (including in relation to fraudulent misrepresentation).
The information contained in this presentation is provided as of the date of this presentation and is subject to change without notice.
Forward Looking Statement
This presentation may contain forward-looking statements about HENSOLDT and its businesses, including statements concerning its strategies, future growth potential of markets and products, profitability in specific areas, future product portfolio, and development of and competition in economics and markets. These statements are based on the current views, expectations, assumptions and information of management, and are based on information currently available to management. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.
Any such forward-looking statements involve known and unknown risks which may cause actual results to differ significantly from any future results expressed or implied. While we believe that the assumptions made and the expectations reflected in today's presentation are reasonable, no assurance can be given that such assumptions or expectations will prove to have been correct. The risks and uncertainties which these forward-looking statements may be subject to include (without limitation) future market developments and the impact of global and European social, political and economic events and developments, including the Russian war against the Ukraine as well as defence and security spending by governments, legal restrictions and controls applicable to sales of HENSOLDT's products, including government approval requirements and moratoriums, international conflicts and political developments affecting HENSOLDT, including by way of new export restrictions, trade barriers, or political support for competitors, HENSOLDT's inclusion and participation in major defence projects and platforms and HENSOLDT's competitive situation.
The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments.
HENSOLDT's public reports and presentations are available via www.HENSOLDT.net
Detect and Protect
This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner's written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Strong progress in all business areas
PEGASUS
First flight of modified airplane successfully completed
Twinvis
Cooperation agreement signed with DFS for use of passive radar in civil aviation
ASR-NG
Two Air Surveillance Radars sold to Space Centre Australia
$\sim € 20 \mathrm{~m}$ (booked in Q4)
Ula class submarine
Critical Design Review successfully completed
German defence spending confirmed at 2\% GDP
- Special fund and financing authorizations will secure 2\% target until 2028
- Mid-term financial planning foresees increase of the regular defence budget to €80bn in 2028
- Clear political commitment to spend $2 \%$ of GDP on defence on a long-term sustainable basis
Strong dynamics in European / NATO defence spending
Ukraine
HENSOLDT's direct exposure
to Ukraine relatively limited, accounting for around $3 \%$ of order backlog
NATO
NATO plans to expand military force and air defence due to increased threats:
Increase number of combat brigades from 82 to 131
Rebuild ground-based air defence systems from 293 to 1.467
23 of 32 NATO members will reach or exceed $2 \%$ of GDP in 2024 and beyond
2024
■ 2025 ■ 2026 ■ 2027 ■ 2028
Figures excluding direct military support for Ukraine. Sources: Janes Defence Budgets 10/2024, does not include inflation effects
Key orders H2 2024
ZEBEL
Operation of the central German
Armed Forces spare
parts logistics
$\sim € 100 \mathrm{~m}$
booked in Q3
Final Focus Metrology
Next generation of high precision measurement technology FFM
$€ 90 \mathrm{~m}$
booked in Q3
Leopard 2 MBT
Optronics for German
Leopard 2
€100m
expected in Q4 '24 / Q1 '25
Leopard 2 MBT
Optronics for German
Leopard 2
€100m
expected in Q4 '24 / Q1 '25
ESG Integration - all objectives achieved by Day 200
HENSOLDT
Financials
Detect and Protect
9M 2024 - excellent performance in top line in $\epsilon \mathrm{m}$
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
(1) Order intake shows the future revenue potential from orders where a contract becomes effective and enforceable. (2) Order backlog is defined as the value of the order book as of the respective reporting date by recording (ைகள order) starting with the opening backlog, taking into account revenue and adjustments for the
9M 2024 - strong bottom line sustained in $€ \mathrm{~m}$
[^0]
[^0]: (1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization (including effects on earnings from purchase price allocations), as well as certain special items relating to transaction costs. OneSAPnow-related special items as well as other special items. (2) Adjusted EBIT is defined as EBIT adjusted for certain special items relating to effects on earnings from purchase price allocations, transaction costs. OneSAPnow-related special items as well as other special items. (3) Adjusted Free Cash Flow is defined as free cash flow excluding certain special items as well as M\&A activities. The free cash flow is defined as sum of the cash flows from operating and investing activities as reported in the Consolidated Statement of Cash Flow.
9M 2024 - Sensors segment
in €m
9M 2024 - Optronics segment in €m
Deleveraging on track
in $€ \mathrm{~m}$
Short term guidance raised
| 2024 | Organic | $\mathrm{ESG}^{(5)}$ | Combined |
|---|---|---|---|
| Book-to-bill ratio | $1.1-1.2 x$ | Orders to grow faster than revenues | 1.2x (from 1.1 - 1.2x) |
| Revenue growth ${ }^{(1)}$ | $\sim 2$ bne with stronger growth in core revenue excl. pass-through |
$\sim 300 \mathrm{~m} €$ | $\sim 2.3$ bne with stronger growth in core revenue excl. pass-through |
| Adjusted EBITDA margin ${ }^{(2)}$ | $19 \%-20 \%$ before pass-through revenue |
$\sim 14 \%$ | $18 \%-19 \%$ before pass-through revenue |
| Adjusted FCF ${ }^{(3)}$ | $\sim 50 \%$ conversion on adjusted EBITDA |
Minor contribution due to strong Q1 | $\sim 50 \%$ average conversion on adjusted EBITDA |
| Net leverage ${ }^{(4)}$ | $\leq 2.0 x$ (from -2.0x) |
||
| Dividend | $30 \%-40 \%$ of adjusted net income |
$30 \%-40 \%$ of adjusted net income |
[^0]
[^0]: (1) Average share of pass-through revenue of total revenue was $\sim 9 \%$ between 2020A and 2023A; pass-through share of total revenue is expected to be in the mid-angle-digit percentage range between 2024E and 2026E. (2) Adjusted EBITDA margin excluding certain special items relating to transaction costs. OneSAPnow-related special items and other special items. (3) Adjusted Free Cash Flow is defined as free cash flow excluding certain special items as well as M\&A activities. (4) Net leverage includes lease liabilities but excludes pensions. (5) Consolidated as of April $2^{\text {nd }} 2024$ (9 months contribution).
HENSOLDT on track
| Achievements | - High order backlog of $€ 6.5$ bn provides excellent revenue visibility - Efficient project execution and strong profitability - German entity of Optronics with strong performance in $3^{\text {rd }}$ Quarter - ESG integration on track and contributing to Group as planned FY 2024 guidance for book-to-bill raised |
|---|---|
| Outlook | - Further major contracts to be expected in 2024 - Strong basis and excellent visibility in Optronics to execute record order book - All planned synergies for 2024 confirmed Large-scale increase of defence budgets provides visibility and long-term sustainable growth for HENSOLDT |
HENSOLDT
Q\&A session
Guidance 2025 confirmed
| Organic | ESG | Combined | |
|---|---|---|---|
| Book-to-bill ratio | Orders to grow significantly faster than revenues | Orders to grow faster than revenues | Orders to grow significantly faster than revenues |
| Revenue growth ${ }^{(1)}$ | $10 \%$ average annual growth |
$\sim 400 \mathrm{~m} €$ | low double-digit growth average annual growth |
| Adjusted EBITDA margin ${ }^{(2)}$ | $19 \%-20 \%$ before pass-through revenue |
$\sim 14 \%$ | $18 \%-19 \%$ before pass-through revenue |
| Adjusted FCF $^{(3)}$ | $50 \%-60 \%$ average conversion on adjusted EBITDA |
$\sim 50 \%$ average conversion on adjusted EBITDA |
$50 \%-60 \%$ average conversion on adjusted EBITDA |
| Net leverage ${ }^{(4)}$ | $\sim 1.6 x$ | ||
| Dividend | $30 \%-40 \%$ of adjusted net income |
$30 \%-40 \%$ of adjusted net income |
[^0]
[^0]: (1) Average share of pass-through revenue of total revenue was $\sim 9 \%$ between 2020A and 2023E; pass-through share of total revenue is expected to be in the mid-angle-digit percentage range between 2024E and 2026E. (2) Adjusted EBITDA margin excluding certain special items relating to transaction costs. OneSAProve-related special items and other special items. (3) Adjusted Free Cash Flow is defined as free cash flow excluding certain special items as well as M\&A activities. (4) Net leverage includes lease liabilities, but excludes pensions.
Medium term guidance confirmed
| Organic medium term target | Combined medium term target | |
|---|---|---|
| Order intake | Orders to grow significantly faster than revenue | Orders to grow significantly faster than revenue |
| Revenue growth ${ }^{(1)}$ | $10 \%$ average annual growth |
$10 \%$ average annual growth |
| Adjusted EBITDA margin ${ }^{(2)}$ | $19 \%-20 \%$ before pass-through revenue |
$>19 \%$ before pass-through revenue |
| Adjusted FCF ${ }^{(3)}$ | $50 \%-60 \%$ average conversion on adjusted EBITDA |
$50 \%-60 \%$ average conversion on adjusted EBITDA |
| Net leverage ${ }^{(4)}$ | Net leverage to further decline | Further declining |
| Dividend | $30-40 \%$ of adjusted net income |
$30-40 \%$ of adjusted net income |
[^0]
[^0]: (1) Average share of pass-through revenue of total revenue was $\sim 9 \%$ between 2020A and 2023E; pass-through share of total revenue is expected to be in the mid-angle-digit percentage range between 2024E and 2026E. (2) Adjusted EBITDA margin excluding certain special items relating to transaction costs. OneSAProve-related special items and other special items. (3) Adjusted Free Cash Flow is defined as free cash flow excluding certain special items as well as M\&A activities. (4) Net leverage includes lease liabilities, but excludes pensions.
HENSOLDT
Financial Section
Consolidated Income Statement
| First nine months | ||
|---|---|---|
| in € million | 2024 | 2023[1] |
| Revenue | 1,377 | 1,136 |
| Cost of sales | $-1,105$ | $-913$ |
| Gross profit | 272 | 222 |
| Selling and distribution expenses | $-95$ | $-83$ |
| General administrative expenses | $-112$ | $-76$ |
| Research and development costs | $-26$ | $-20$ |
| Other operating income | 13 | 17 |
| Other operating expenses | $-14$ | $-14$ |
| Share of profit / loss from investments accounted for using the equity method | 3 | - |
| Other result from investments | $-1$ | 5 |
| Earnings before financial result and income taxes (EBIT) | 41 | 52 |
| Interest income | 24 | 17 |
| Interest expense | $-74$ | $-48$ |
| Other finance income / costs | 2 | $-7$ |
| Financial result | $-48$ | $-38$ |
| Earnings before income taxes (EBT) | $-8$ | 13 |
| Income taxes | $-40$ | $-16$ |
| Group result | $-48$ | $-3$ |
| thereof attributable to the owners of HENSOLDTAG | $-46$ | $-2$ |
| thereof attributable to non-controlling interests | $-2$ | 1 |
[^0]
[^0]: (1) Adjustment of previous year's figures
Consolidated Statement of Financial Position - Assets
| As at | ||
|---|---|---|
| in $€$ million | 9M 3024 | VE 3023[1] |
| Non-current assets | 2,277 | 1,424 |
| Goodwill | 1,128 | 658 |
| Intangible assets | 662 | 399 |
| Property, plant and equipment | 182 | 140 |
| Right-of-use assets | 261 | 189 |
| Investments and other financial assets ${ }^{(1)}$ | 34 | 26 |
| Other non-current assets | 4 | 3 |
| Deferred tax assets | 6 | 9 |
| Current assets | 2,090 | 2,155 |
| Other ${ }^{(2)}$ | 13 | 34 |
| Inventories | 816 | 625 |
| Contract assets | 374 | 196 |
| Trade receivables | 396 | 382 |
| Other current assets | 131 | 116 |
| Cash and cash equivalents | 360 | 802 |
| Total assets | 4,368 | 3,579 |
[^0]
[^0]: (1) Includes investments accounted for using the equity method. Other investments and other non-current financial assets. Non-current other financial assets.
2) Includes Other non-current financial assets, due on short notice, Other current financial assets and Income tax receivables.
3) Adjustment of previous year's figures
1) Includes investments accounted for using the equity method. Other investments and other non-current financial assets, Non-current other financial assets.
2) Includes Other non-current financial assets, due on short notice, Other current financial assets and Income tax receivables.
3) Adjustment of previous year's figures
Consolidated Statement of Financial Position - Equity \& Liabilities
| As at | ||
|---|---|---|
| in € million | 9M 2024 | VE 2023[1] |
| Share capital | 116 | 116 |
| Capital reserve and other reserves | 504 | 645 |
| Retained earnings | 92 | 62 |
| Equity held by shareholders of HENSOLDT AG | 711 | 822 |
| Non-controlling interests | 15 | 16 |
| Equity, total | 726 | 838 |
| Non-current liabilities | 1,979 | 1,271 |
| Non-current provisions | 452 | 357 |
| Non-current financing liabilities ${ }^{(1)}$ | 1,085 | 631 |
| Non-current contract liabilities | 12 | - |
| Non-current lease liabilities | 262 | 191 |
| Other non-current liabilities | 13 | 14 |
| Deferred tax liabilities | 155 | 79 |
| Current liabilities | 1,662 | 1,470 |
| Current provisions | 233 | 211 |
| Current financing liabilities ${ }^{(2)}$ | 36 | 30 |
| Current contract liabilities | 679 | 578 |
| Current lease liabilities | 24 | 20 |
| Trade payables | 524 | 457 |
| Other current liabilities | 130 | 136 |
| Tax liabilities | 35 | 39 |
| Total equity and liabilities | 4,368 | 3,579 |
[^0]
[^0]: (1) Includes Non-current financing liabilities and Other non-current financial liabilities.
(2) Adjudice of previous year's reports
32
HENSOLDT
Consolidated Statement of Cash Flow (1/2)
| First nine months | ||
|---|---|---|
| in € million | 2024 | 2023 |
| Group result | $-48$ | $-2$ |
| Depreciation, amortisation and impairments of non-current assets | 109 | 83 |
| Financial expenses (net) | 41 | 25 |
| Change in | ||
| Provisions | $-7$ | $-2$ |
| Inventories | $-187$ | $-176$ |
| Contract balances | $-47$ | $-133$ |
| Trade receivables | 17 | 55 |
| Trade payables | 47 | 45 |
| Other assets and liabilities | $-58$ | 10 |
| Interest paid | $-48$ | $-30$ |
| Interest received | 17 | 5 |
| Income tax payments (-) / refunds ( + ) | $-17$ | $-10$ |
| Other ${ }^{(1)}$ | 43 | 19 |
| Cash flows from operating activities | $-138$ | $-113$ |
| Acquisition / addition of intangible assets and property, plant and equipment | $-131$ | $-71$ |
| Acquisition of associates, other investments and other non-current financial assets | $-3$ | $-6$ |
| Acquisition of subsidiaries net of cash acquired | $-543$ | $-1$ |
| Other ${ }^{(2)}$ | 1 | 2 |
| Cash flows from investing activities | $-676$ | $-76$ |
[^0]
[^0]: (1) Includes Impairments/reversals of impairments of inventories, trade receivables and contract assets. Share of profit in entities recognized according to the equity method. Other non-cash expense/income and Income tax expense/income.
2 Includes Proceeds from sale of intangible assets and property, plant and equipment, proceeds from disposals of associates, other investments and non-current financial assets and Other cash flows from investing activities.
3 Subsatellite of previous assets figures.
Consolidated Statement of Cash Flow (2/2)
| First nine months | ||
|---|---|---|
| in € million | 2024 | 2024 |
| Cash flows from operating activities | $-138$ | $-113$ |
| Cash flows from investing activities | $-676$ | $-76$ |
| Change in other financing liabilities | 443 | 108 |
| Payment of lease liabilities | $-20$ | $-14$ |
| Dividend payments | $-46$ | $-32$ |
| Cash flows from financing activities | 376 | 62 |
| Effects of changes in exchange rates on cash and cash equivalents | $-3$ | 0 |
| Net changes in cash and cash equivalents | $-442$ | $-127$ |
| Cash and cash equivalents | ||
| Cash and cash equivalents on 1 January | 802 | 460 |
| Cash and cash equivalents on 30 September | 360 | 333 |
Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures
| First nine months | ||
|---|---|---|
| in € million | 2024 | 2024 |
| Order intake | 1,856 | 1,281 |
| Sensors | 1,603 | 964 |
| Optronics | 297 | 322 |
| Elimination/Transversal/Others | $-44$ | $-6$ |
| in € million | ||
| Revenue | 1,377 | 1,136 |
| Sensors | 1,205 | 952 |
| Optronics | 182 | 188 |
| Elimination/Transversal/Others | $-10$ | $-4$ |
| in € million | ||
| Adjusted EBITDA ${ }^{(1)}$ | 187 | 151 |
| Sensors | 194 | 155 |
| Optronics | $-7$ | $-4$ |
| Elimination/Transversal/Others | - | - |
Overview of EBITDA and EBIT adjustments
EBITDA adjustments
in € million
EBIT
(+) Depreciation
(+) Amortization
EBITDA
(+) Effects on earnings from purchase price allocations
(+) Transaction costs
(+) OneSAPnow-related special items
(+) Other special items
Adjusted EBITDA
First nine months
| 3024 | 30230 |
|---|---|
| 41 | 52 |
| 45 | 34 |
| 64 | 43 |
| 150 | 129 |
| - | 6 |
| 3 | - |
| 6 | 5 |
| 28 | 12 |
| 187 | 151 |
EBIT adjustments
| in € million | 3024 | 30220 |
|---|---|---|
| EBIT | 41 | 52 |
| (+) Effect on earnings from purchase price allocations | 32 | 26 |
| thereof intangible assets | 31 | 26 |
| thereof property, plant and equipment | 0 | 0 |
| thereof inventories | 0 | - |
| (+) Transaction costs | 3 | - |
| (+) OneSAPnow-related special items | 7 | 5 |
| (+) Other special items | 29 | 12 |
| Adjusted EBIT | 111 | 94 |
Reconciliation of reported to adjusted FCF
| First nine months | ||
|---|---|---|
| in € million | 3624 | 3624 |
| Cash flows from operating activities | $-138$ | $-113$ |
| Cash flows from investing activities | $-676$ | $-76$ |
| Free cash flow | $-814$ | $-189$ |
| $(+)$ Transaction costs | 11 | - |
| $(+)$ OneSAPnow-related special items | 28 | 6 |
| $(+)$ M\&A-activities ${ }^{(1)}$ | 574 | 5 |
| $(+)$ Other special items | 44 | 15 |
| Adjusted free cash flow | $-157$ | $-162$ |
| Cash flows from financing activities | 376 | 62 |
[^0]
[^0]: (1) Defined as sum of "Proceeds from sake of intangible assets and property, plant and equipment", "Proceeds from disposal of associates, other investments and non-current financial assets", "Acquisition of associates, other investments and other non-current financial assets", "Acquisition of subsidiaries not of cash acquired" as well as "Other cash flows from investing activities" as reported in the Consolidated Statement of Cash Flows. In addition, a compensation obligation paid in connection with the acquisition of the ESG Group is recognised in operating cash flow in the first nine months of of 2024.
Reconciliation of reported to adjusted net income
| First nine months | ||
|---|---|---|
| in € million | 2024 | $2023^{10}$ |
| Group result | -48 | -3 |
| (+) Effect on earnings from purchase price allocations | 32 | 26 |
| (+) Transaction costs | 3 | - |
| (+) OneSAPnow-related special items | 7 | 5 |
| (+) Other special items | 29 | 12 |
| Adjusted net income pre-tax adjustment | 23 | 40 |
| (+) Tax adjustments ${ }^{(1)}$ | -19 | -12 |
| Adjusted net income | 4 | 28 |
Special items
| in € million | HH 2024 | 2024 | 2025 | mid-term |
|---|---|---|---|---|
| Effect on earnings from purchase price allocations | $-20$ | $-(49)$ | $-(45)$ | $-(35)$ |
| PPA | $-20$ | $-(49)$ | $-(45)$ | $-(35)$ |
| in € million | HH 2024 | 2024 | 2025 | mid-term |
| Special Items / Transaction Cost, One tothree-vessel here, One special item | $-27.7$ | $-55 \text { to } 65$ | $-45 \text { to } 55$ | significant ramp-down |
| ESIT adjustments | $-27.7$ | $-55 \text { to } 65$ | $-45 \text { to } 55$ | significant ramp-down |
| in € million | HH 2024 | 2024 | 2025 | mid-term |
| Special Items / Transaction Cost, One tothree-vessel here, One special item | $-27.4$ | $-50 \text { to } 60$ | $-35 \text { to } 45$ | significant ramp-down |
| ESITDA adjustments | $-27.4$ | $-50 \text { to } 60$ | $-35 \text { to } 45$ | significant ramp-down |
Special items are driven by
- Move to new site Oberkochen
- Transaction and Integration costs for ESG
- SAHWA implementation
Special items are driven by
- Move to new site Oberkochen
- Transaction and Integration costs for ESG
- SAHWA implementation
Special items are driven by
- Move to new site Oberkochen
- Transaction and Integration costs for ESG
- SAHWA implementation
| in € million | HH 2024 | 2024 | 2025 | mid-term |
|---|---|---|---|---|
| Special items / Transaction Cost, One tothree-vessel here, One special item | $-53.4$ | $-100 \text { to }-120$ | $-60 \text { to } 80$ | significant ramp-down |
| FCF adjustments | $-53.4$ | $-100 \text { to }-120$ | $-60 \text { to } 80$ | significant ramp-down |
Special items are driven by
- Move to new site Oberkochen
- Transaction and Integration costs for ESG
- SAHWA implementation
Q3 Financial Overview HENSOLDT Group
| Third quarter | ||
|---|---|---|
| in $€$ million | 2024 | 2023 |
| Order intake | 497 | 210 |
| Book-to-bill ratio ${ }^{(1)}$ | $0.9 x$ | $0.5 x$ |
| Revenue | 528 | 410 |
| Adjusted EBIT ${ }^{(2)}$ | 59 | 49 |
| Adjusted EBITDA ${ }^{(3)}$ | 84 | 69 |
| Adjusted EBITDA margin | $15.9 \%$ | $16.9 \%$ |
| Adjusted free cash flow ${ }^{(4)}$ | -12 | -6 |
[^0]
[^0]: (1) The book-to-bill ratio is defined as the ratio of order intake to revenue in the relevant fiscal year.
(2) Adjusted EBIT corresponds to earnings before finance result and income taxes (EBIT), adjusted for certain special items relating to effects on transaction costs, earnings from purchase price allocations, OneSAPnow-related special items as well as other special items.
${ }^{(3)}$ Adjusted EBITDA is defined as EBIT adjusted for intervention and amortization (including effects on earnings from purchase price allocations), as well as certain special items relating to transaction costs, OneSAPnow-related special items as well as other special items.
$\square$ Derived from a list of the new adju
(4) The book-to-bill ratio is defined as the ratio of order intake to revenue in the relevant fiscal year.
(5) Adjusted EBIT corresponds to earnings before finance result and income taxes (EBIT), adjusted for certain special items relating to effects on transaction costs, earnings from purchase price allocations, OneSAPnow-related special items as well as other special items.
HENSOLDT
Back-up
Detect and Protect
EBIT to net income bridge
in €m
Reported EBIT
9M 2024
Interest income
Interest expense
TLB \& RCF
Interest on pensions
Interest on lease liabilities
Valuation interest rate hedge (swap)
Other effects
Income tax
Reported net income 9M 2024
Upcoming IR events*
IR Contacts
Contact
- Contact:
Veronika Endres
Tim Schmid
- Phone:
+49 89515182057
+49 89515182625 - Email:
[email protected] - Internet:
www.hensoldt.net
HENSOLDT share
- Type of share:
Bearer shares
- Stock Exchange:
Frankfurt Stock Exchange
- Security reference number:
ISIN DE000HAG0005
Reports
- Financial Reports:
https://investors.hensoldt.net - Annual Report:
https://annualreport.hensoldt.net - Sustainability Report:
www.hensoldt.net
Detect and Protect
This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner's written consent. (C) Copyright HENSOLDT AG 2024. All rights reserved.