HENSOLDT AG

Investor Presentation • Aug 4, 2022

HENSOLDT

H1 2022 Results – Analyst & Investor Presentation

Taufkirchen, 4th of August 2022

Thomas Müller, CEO Christian Ladurner, CFO

Disclaimer

Forward Looking Statement

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, and any decision to invest in securities should be made solely on the basis of the information to be contained in a prospectus and on an independent analysis of the information contained therein. 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 H1 period ended June 30, 2022 is unaudited. 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-IFRS measures. We believe that such non-IFRS 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-IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-IFRS 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.

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 COVID-19 pandemic, 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

HENSOLDT

Business Update

New NATO era: HENSOLDT ahead of the curve

Strategic Concept Russia, China, Cyber & Space, Climate Change, Resilience

NATO enlargement NATO'S response

to war in Ukraine

NATO-EU cooperation DIANA - Defence Innovator Accelerator 60 Test Centers & 10 Accelerator Sites €50M overall budget ~ €10.5M for start-ups NATO Innovation Fund Multinational NATO venture capital fund €1B for dual-use technologies

NATO NEW FUNDING OPPORTUNITIES

TO SHAPE NEW OPPORTUNITIES

NATO NEW STRATEGIC FOCUS

NATO HIGH-VISIBILITY PROJECTS

NGRC - Next-Generation Rotorcraft Capability Replacement of approx. 1,000 NATO medium-class helicopters in 2035-2040+ HENSOLDT potential 2025-2040 ca. €400M HENSOLDT EDF share for NGRT €1.3M

GBAD - Modular Ground Based Air Defence Implement a systematic modular approach to equip participating Allies Concept phase 2023-2027

NATO Industrial Advisory Group Unique NATO body for industrial engagement at the pre-procurement stage

NATO Scientific & Technology Organisation Key scientific NAT body for research in Passive/Active Radar, AI for Military ISR, Hypersonic Threats, Big Data

NATO Communication and Information Agency Future potential role in

HENSOLDT CONTINUES

EDTs, but very limited opportunities so far for HENSOLDT

European defence budget increase triggered by Ukraine war

• European defence budgets increase sustainably.
• Five biggest spenders (DE, GB, IT, FR, ES) account for about 70% of total European spending.
• Many countries already confirmed their plans to increase the size of their armed forces and spend more on equipment.
• More NATO countries will fulfil their obligation to spend 2% or even beyond of their GDP on defence.

Source: Janes, 2022

Three fields of action defined by German government

		Expected impact for HENSOLDT
1	Immediate support for Ukraine - short-term equipment deliveries in coordination with the Federal Government	Double-digit € million amount
2	Short-term support to increase combat readiness of the Bundeswehr (spare parts, acceleration of maintenance, delivery of products on stock)	in orders confirmed
3	Medium- and long-term improvement of operational readiness of the Bundeswehr through additional acquisitions and new projects - priority is market availability	Broad spectrum of opportunities for HENSOLDT

Orders from Special Fund primarily expected in 2023 & 2024

			HENSOLDT potential participation	probability
R AI	• TORNADO succession EF ECR • TORNADO succession F-35 • Future Combat Air System • Ground-based Air Defence • Heavy Lift Helicopter • Air Control Command System, Various Radars • Light Utility Helicopter • Space Surveillance and Operations System • Space Based Early Warning (TWISTER) • Satellite Communication (SATCOMBw) Step 2 & 3	• Escort Jamming • • • TRML-4D, Spexer • • Passive Radar • • GESTRA • • Telescope	Pod Eurofighter, luWES Maintenance / Service/ Production FCMS-Lead; Networked Systems Self-Protection, IFF, Mission-Management Self-Protection, Mission-Management Optronics, Radar and Cyber Components for Laser Communication Terminal
D N A L	• PUMA Upgrade 1st Batch • Infantry Fighting Vehicle MARDER succession • Infantry Heavy Weapons Platform • Main Ground Combat System • Oversnow Vehicle BV 206 succession • Night Vision Devices • Armoured Personnel Carrier FUCHS succession • Air Landing Platform (GER/NED) succession • Digitization of Land-based Operations (D-LBO) • "Infantryman of the future" (IdZ ES) VJTF-Standard	• Optronics, sights • Optronics, sights • Optronics, sights • • Optical System • • • • • Telescopic	for commander and gunner, self-protection for commander and gunner, self-protection for commander and gunner, self-protection Main Technology Demonstrator 12 and National Studies Night Vision Devices (JV with THEON) Optical System SETAS Optical System LUWA Sensor-Fusion, 1st Prototype Sights, Night-Vision- & Infrared-Attachments
A E S	• Corvette K130 (Boats 11-15) • Frigate F126 (Ships 5+6) • Submarine U212 CD 2nd Batch (4+2 Boats) • Multi-Role Combat Boats • Succession Rigid-Hulled Inflatable Boat (RHIB) • Maritime Patrol Aircraft P8 (additional aircraft)	• • • • Radars, Optronics • Radars, Optronics •	TRS-4D (Rotator), IFF, Optronics TRS-4D (Non-Rotator), IFF, Optronics Periscope-System, IFF Maintenance/ Service/ Production
D AI & + R	• Surveillance and protection of large areas via AI	• R&T for	CERETRON Sensorfusion (D-LBO/ STF)
	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 2022. All rights reserved.	7

HENSOLDT / LEONARDO Potential Cooperation Areas

1	Radar and Defensive Aids for Eurofighter Typhoon
2	Combat System for Next Generation Frigates
3	Networked Land Sensor Solutions
4	Advanced Air Defence Systems incl. Hypersonics

Real work starting now, turning our vision into concrete plans

Nucleus for broader European collaboration

HENSOLDT

Financials

H1 2022 – significant growth in top line

(1) Order intake is defined as orders where the corresponding selling contract becomes effective and enforceable in accordance with the terms and conditions of the contract. (2) Order backlog is defined as the value of the order book at the respective reporting date by keeping record of customer orders starting from the opening stock and taking into account revenue and adjustments for the respective reporting period, and ending with the final stock.

H1 2022 – bottom line follows excellent top line development in €m

(1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization (including non-recurring effects on earnings from purchase price allocations), as well as certain non-recurring effects relating to transaction costs, IPO related costs and other non-recurring effects.(2) Adjusted EBIT is defined as EBIT adjusted for certain non-recurring effects relating to effects on earnings from purchase price allocations, transaction costs, IPO related costs and other non-recurring effects. (3) Adjusted Pre-Tax Unlevered Free Cash Flow is defined as free cash flow adjusted for non-recurring operating effects as well as interest, tax and 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 cash flow statement.

Excellent development of net debt

in €m

(1) Net leverage including lease liabilities, excluding pensions.

12

Adjustment of financing conditions

Maturity of credit facilities extended until 2027

Securing mid- and long-term financing conditions

Margin ratchets for credit facilities improved

• Margin grid extended for lower leverage ratios with lower interest margins
• Maximum margin level reduced

Volume of bonding facilities increased

Increased headroom to support HENSOLDT's continued growth path

Lender structure refined

• Significantly oversubscribed transaction despite current macroeconomic environment
• Diversified portfolio of large commercial banks

Guidance 2022 substantiated

	2022 old	2022 new	2023 target	Medium term target
ratio(1) Book-to-bill	> 1.0x	1.1x – 1.2x
Revenue / revenue growth		~€1.7bn (mid-teens growth)	
Adj. EBITDA / Adj. EBITDA margin(2)	€285m –	€300m	Mid-term guidance currently unchanged  Substantial tailwind based on €100bn special
FCF(3) Adj. pre-tax unlevered		~70% conversion on adjusted EBITDA	fund
Net leverage(4)		<1.4x	 Guidance update will be based on materialization of procurement plans
Dividend	Up to of adj. net	20% income	 Clearer picture expected during H2 2022
Capex: 2.0-2.5% of revenue Capex and intangible investment Cap. R&D: 2.0-3.0% of revenue
D&A (% of revenues)		~5% (t/o 50% IAS38) of revenue

Key financial takeaways

Visibility	 Strong order backlog(1) of €5.4bn  Efficient project execution  Strong profitability before pass-through revenues  Cash-flow according to plan to ensure further growth
Outlook	Guidance substantiated for book-to-bill for FY2022  Book-to-bill increased to 1.1x – 1.2x  ~15% growth in revenues to ~€1.7bn  ~12% growth in absolute Adj. EBITDA(2) to €285-300mn  Further reduction of Net Leverage(3)  Dividend up to 20% of Adj. Net Income

(1) Order backlog is defined as the value of the order book at a respective reporting date by keeping record of customer orders starting from the opening stock and taking into account revenue and adjustments for the respective reporting period, and ending with the final stock. (2) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization (including non-recurring effects on earnings from purchase price allocations), as well as certain non-recurring effects relating to transaction costs, IPO related costs and other non-recurring effects / / reported revenue for the relevant period. (3) Targeted net financial leverage including lease liabilities, excluding pensions.

HENSOLDT

Q&A session

HENSOLDT

Financial Section

Consolidated Income Statement

	First half year
in € million	2022	2021
Revenue	682	486
Cost of sales	-568	-414
Gross profit	114	72
Selling and distribution expenses	-53	-49
General administrative expenses	-43	-39
Research and development costs	-17	-15
Other operating income	10	19
Other operating expenses	-9	-8
Share of profit/loss from investment accounted for using the equity method	—	-2
Earnings before finance result and income taxes (EBIT)	2	-22
Interest income	3	4
Interest expense	-22	-24
Other finance income/costs	5	3
Finance result	-15	-16
Earnings before income taxes (EBT)	-13	-38
Income taxes	-3	10
Group result	-16	-28
thereof attributable to the owners of HENSOLDT AG	-16	-27
thereof attributable to non-controlling interests	-0	-1

Consolidated Statement of Financial Position – Assets

		As at
in € million	H1 2022	YE 2021
Non-current assets	1,315	1,320
Goodwill	652	651
Intangible assets	387	385
Property, plant and equipment	110	108
Right-of-use assets	136	141
Investments and other financial assets(1)	22	22
Other non-current assets	3	3
Deferred tax assets	5	11
Current assets	1,499	1,629
Other(2)	19	10
Inventories	528	444
Contract assets	225	170
Trade receivables	267	309
Other current assets	157	167
Cash and cash equivalents	302	529
Total assets	2,814	2,950

(1) Includes Investments accounted for using the equity method, Other investments and non-current other 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.

Consolidated Statement of Financial Position – Equity and Liabilities

	As at
in € million	H1 2022	YE 2021
Share capital	105	105
Capital reserve and other reserves(1)	634	513
Retained earnings	-234	-218
Equity held by shareholders of HENSOLDT AG	505	399
Non-controlling interests	12	11
Equity, total	517	410
Non-current liabilities	1,163	1,284
Non-current provisions	313	497
Non-current financing liabilities(2)	618	622
Non-current contract liabilities	33	12
Non-current lease liabilities	135	139
Other non-current liabilities	8	10
Deferred tax liabilities	55	4
Current liabilities	1,134	1,255
Current provisions	163	188
Current financing liabilities(3)	171	176
Current contract liabilities	387	500
Current lease liabilities	18	16
Trade payables	307	269
Other current liabilities	80	94
Tax liabilities	9	11
Total equity and liabilities	2,814	2,950

(1) Includes Capital reserve, Other reserves.

(2) Includes Non-current financing liabilities, Other non-current financial liabilities.

(3) Includes Current financing liabilities, Other current financial liabilities.

Consolidated Statement of Cash Flows (1/2)

	First half year
in € million	2022	2021
Group result	-16	-28
Depreciation and amortisation	52	60
Financial expenses (net)	16	17
Change in
Provisions	-9	-11
Inventories	-83	-93
Contract balances	-148	49
Trade receivables	45	47
Trade payables	37	25
Other assets and liabilities	-10	-62
Interest paid	-13	-19
Income tax payments (-) / refunds (+)	-4	-5
Other(1)	-1	-20
Cash flow from operating activities	-134	-39
Acquisition / addition of intangible assets and property, plant and equipment	-44	-48
Acquisition of associates, other investments and other non-current financial assets	-2	-5
Acquisition of subsidiaries net of cash acquired	0	-8
Other(2)	0	0
Cash flow from investing activities	-46	-61

(1) Includes impairments/reversals of impairments of inventories, trade receivables and contract assets, Share of profit in entities accounting for using the equity method, Other non-cash expenses/income and Income tax expense/income. (2) Proceeds from sale of intangible assets and property, plant and equipment and Other cash flows from investing activities.

Consolidated Statement of Cash Flows (2/2)

	First half year
in € million	2022	2021
Cash flow from operating activities	-134	-39
Cash flow from investing activities	-46	-61
Proceeds/repayment of financial liabilities(1)	-13	-239
Payment of lease liabilities	-9	-8
Dividend payments	-26	-14
Transaction costs paid on issue of equity	—	-3
Other	0	0
Cash flow from financing activities	-49	-264
Effects of movements in exchange rates on cash and cash equivalents	2	0
Other adjustments	—	—
Net changes in cash and cash equivalents	-227	-364
Cash and cash equivalents
Cash and cash equivalents on 1 January	529	645
Cash and cash equivalents on 30 June	302	282

(1) Proceeds / repayment from financial liabilities, Change in other financial liabilities

Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures

		First half year
in € million	2022	2021
Order intake	948	2,112
Sensors	810	1,905
Optronics	144	210
Elimination/Transversal/Others		-5 -3
in € million
Revenue	682	486
Sensors	575	376
Optronics	109	111
Elimination/Transversal/Others		-2 -1
in € million
Adjusted EBITDA(1)		61 44
Sensors		52 36
Optronics		9 11
Elimination/Transversal/Others		— -2

(1) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization (including non-recurring effects on earnings from purchase price allocations), as well as certain non-recurring effects relating to transaction costs, IPO related costs and other non-recurring effects.

Overview of EBITDA and EBIT adjustments

EBITDA adjustments	First half year
in € million	2022	2021
EBIT	2	-22
(+) Depreciation	22	22
(+) Amortization	30	39
EBITDA	53	38
(+) Transaction costs	0	0
(+) IPO related costs	—	1
(+) Other non-recurring effects	7	5
Adjusted EBITDA	61	44

EBIT adjustments		First half year
in € million	2022	2021
EBIT	2	-22
(+) Effect on earnings from purchase price allocations	18	32
thereof intangible assets	18	31
thereof property, plant and equipment	0	0
thereof inventories	—	—
(+) Transaction costs	0	0
(+) IPO related costs	—	1
(+) Other non-recurring effects	7	5
Adjusted EBIT	27	16

Reconciliation of reported to adjusted pre-tax unlevered FCF

	First half year
in € million	2022	2021
Cash flow from operating activities	-134	-39
Cash flow from investing activities	-46	-61
Free cash flow	-180	-100
(+) Transaction costs	—	0
(+) IPO related costs	—	4
(+) Other non-recurring effects	5	5
(+) Interest(1), income taxes(2) and M&A-activities(3)	19	34
Adjusted pre-tax unlevered free cash flow	-157	-57
Cash flow from financing activities	-49	-264

(1) Defined as 'Interest paid' as reported in the consolidated cash flow statement.

(2) Defined as 'Income taxes payments / refunds' as reported in the consolidated cash flow statement.

(3) Defined as sum of 'Share of profit in entities accounting for using the equity method', 'Proceeds from sale of intangible assets and property, plant and equipment', 'Acquisition of associates, other investments and other non-current investments',

'Acquisition of businesses net of cash required' and 'Other cash flows from investing activities' as reported in the consolidated cash flow statement.

Q2 Financial Overview HENSOLDT Group

	Second quarter
in € million	2022	2021
Order intake	267	1,565
Book-to-bill ratio(1)	0.7	5.6
Revenue	396	277
Adjusted EBIT(2)	26	14
Adjusted EBITDA(3)	44	29
Adjusted EBITDA margin	11.1%	10.5%
Adjusted pre-tax unlevered free cash flow(4)	-43	-25

(1) Book-to-Bill ratio is defined as order intake / reported revenue for the relevant period

(2) Adjusted EBIT is defined as EBIT adjusted for certain non-recurring effects relating to effects on earnings from purchase price allocations, transaction costs, IPO related costs and other non-recurring effects

(3) Adjusted EBITDA is defined as EBIT adjusted for depreciation and amortization (including non-recurring effects on earnings from purchase price allocations), as well as certain non-recurring effects relating to transaction costs, IPO related costs and other non-recurring effects

(4) Adjusted pre-tax unlevered free cash flow is defined as free cash flow adjusted for non-recurring operating effects as well as interest, tax and 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 cash flow statement

Back-up

IR events*

* Dates might be subjected to changes

IR Contacts

• Contact: Veronika Endres Tim Schmid
• Phone: +49 89 51518 2057
• +49 89 51518 2625
• Email: investorrelations@hensoldt.net
• Internet: www.hensoldt.net

Contact HENSOLDT share Reports

• Type of share: Bearer shares
• Stock Exchange: Frankfurt Stock Exchange

• Security reference number: ISIN DE000HAG0005

• Financial Reports: https://investors.hensoldt.net

• Annual Report: https://annualreport.hensoldt.net
• Sustainability Report: www.hensoldt.net

* Dates might be subjected to changes