HENSOLDT AG

Investor Presentation • Dec 14, 2022

HENSOLDT The new defence environment

Capital Markets Day 2022

London, 14th of December 2022

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. 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 9M period ended September 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 Russian war against the Ukraine and 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

Agenda

1.	Introduction	Thomas Müller
2.	The new defence environment	Chief Executive Officer
3.	The HENSOLDT growth strategy	Celia Pelaz Chief Strategy Officer
4.	A sustainable workplace to attract the right people	Dr. Lars Immisch Chief HR Officer
5.	Updating our medium term guidance	Christian Ladurner Chief Financial Officer

1. Introduction

Thomas Müller, Chief Executive Officer

HENSOLDT has fully delivered on its commitments at IPO

	IPO targets(1)	2022E(2) 2019A –
Revenue growth	~15%	~15%	ü
Adjusted EBITDA margin(3) before pass-through revenue	~18%	~19%	ü
Dividends % adjusted net income	Up to 20%	Up to 20%	ü
Net leverage(4)	2.25x	~1.25x	ü

(1) 2020A - 2022E targets at IPO from the roadshow presentation, September 2020; revenue growth since IPO stated as CAGR implied from mid target ranges; adjusted EBITDA margin calculated as yearly average; net leverage IPO target for end of 2021;( 2) Revenue growth stated as CAGR; adjusted EBITDA margin calculated as yearly average; net leverage calculated as year end 2021A net debt to adjusted EBITDA; (3) Adjusted EBITDA margins excluding certain non-recurring items such as IPO costs (in the past) or OneERPnow costs (going forward); (4) Net leverage includes lease liabilities, but excludes pensions

Unique high growth defence and security investment

"We strive to become Europe's leading, platform-independent provider of defence and security sensor solutions with global reach."

HENSOLDT has outgrown its core markets

Source: Renaissance Strategic Advisors, HENSOLDT AG. (1) Refers to global accessible defence electronics market; (2) Management estimate for cumulative order intake 2020A – 2022E, based on 2022E targets

HENSOLDT successfully converted a large order backlog into high and profitable growth

Source: HENSOLDT AG. (1) Management estimate based on 2022E guidance; (2) Pre IFRS 16; (3) Adjusted EBITDA margins excluding certain non-recurring items such as IPO costs (in the past) or OneERPnow costs (going forward)

2. The new defence environment Thomas Müller, Chief Executive Officer

We find ourselves in a new defence environment

• Significant uptick of threat environment in Europe through Russian war against Ukraine
• Military tensions rise in both the South China Sea and the Pacific
• Rise in new forms of warfare such as cyber attacks and covert threats to economic infrastructure

• Clear shift in global security perception
• Higher commitment to defence budgets and NATO targets
• In Europe, focus on increasing conventional capabilities, especially on land
• In APAC, strong demand to increase maritime capability
• Increasing push towards future capabilities including smart sensors, electronic warfare, data fusion and analytics

Source: Renaissance Strategic Advisors

Our products are proving critical to the defence and security of Germany and its allied partners

HENSOLDT CMD 2022

Strong global growth in defence budgets, especially in our core markets

Source: Renaissance Strategic Advisors. Global figures do not include Russia, China, Iran, Syria, North Korea. (1) Rest of World excludes Geographical Europe

Source: Renaissance Strategic Advisors, HENSOLDT AG

Strong German defence electronics market growth translating into concrete opportunities for HENSOLDT

Example opportunities for HENSOLDT
FCAS	Eurofighter EW capabilities
EuroDrone	GESTRA
Ground-based Air Defence	MGCS
Counter UAV	Digitization of Land Forces
F127 frigate	Heavy Infantry Vehicle PUMA

HENSOLDT is capitalizing on the new defence environment with a record order backlog and pipeline(1) >30

Source: HENSOLDT AG. (1) Pipeline is defined as total identified opportunities open for tender, based on management estimates of total value of contracts addressable over specified period (unadjusted for win probabilities for HENSOLDT)

Multi-Domain is the future of warfare: Sensors at the core of the connected battlefield

3. The HENSOLDT growth strategy Celia Pelaz, Chief Strategy Officer

HENSOLDT strongly positioned for the future of warfare

Source: HENSOLDT AG. (1) Includes R&D costs and capitalized development costs; (2) Referring to 2021A revenue, Sensors: Radar & Naval Solutions, Spectrum Dominance & Airborne Solutions, and Customer Services & Space Solutions and includes Elimination/Transversal/Others; Optronics: optronics and optical and precision instruments for military, security and civil applications; (3) Referring to 2021A revenue, RoW includes Elimination/Transversal/Others; (4) Referring to 2021A revenue

HENSOLDT to capture key pockets of growth for decades to come

Defence budgets increase globally with special focus on electronics

Source: Renaissance Strategic Advisors. Global figures do not include Russia, China, Iran, Syria, North Korea. (1) Rest of World excludes Geographical Europe; (2) Growth refers to accessible electronics market growth 2022E - 2027E

HENSOLDT has the right strategy to capture these growth pockets

	Growth drivers	Customer priorities	HENSOLDT's strategic vectors
1	Increase & upgrade conventional capabilities	• Speed of delivery • State-of-the art capabilities • Interoperability	Sensor solutions house Innovation champion
		• Next generation capabilities	More and expanded international
2	Focus on the 'new battlefields'	• European co-operation • Fully networked systems	Defence and security
Source: HENSOLDT AG

There is a strong & immediate global demand to increase and upgrade conventional capabilities

Source: HENSOLDT AG

At the same time, electronics content & network connectivity on platforms continues to increase

HENSOLDT CMD 2022

HENSOLDT is strongly positioned to capture this rising demand for interconnected solutions in electronics

2017	2022	2025+
• Driver Vision System SPECTUS	• Driver Vision System SPECTUS • Gunner Sight (EMES) ATTICA GL & Laser • Commander Sight PERI R17	• Driver vision system • Digital Gunner Sight, infra red, Laser • Commander Sight Digital PERI R17 • 360° SAS SETAS • Augmented reality & sensor fusion CERETRON
	Electronics content constantly increasing

Source: HENSOLDT AG

HENSOLDT CMD 2022

HENSOLDT is selectively moving up the value chain to capture more platform content

Electronics content constantly increasing

Source: HENSOLDT AG

…and continues to invest to remain at the forefront of leading capabilities

Today we already have a global order pipeline(1) of ~ €30bn over the next 5 years and it will continue to grow

HENSOLDT set to benefit from upcoming German programs

Our go-to-market: HENSOLDT has a global footprint with presence in all major accessible defence markets

29

Leveraging our presence to capture international opportunities & budget growth

Targeted M&A remains a core part of HENSOLDT's growth path

HENSOLDT CMD 2022

HENSOLDT has the potential to double revenue every five years

4. A sustainable workplace to attract the right people Dr. Lars Immisch, Chief HR Officer

HENSOLDT is a top 2 employer in Germany

We have highly qualified and motivated employees…

…and a proven track record in hiring

Number of employees(1)

HENSOLDT is an ESG leader in the sector and beyond…

(1) Science Based Targets initiative

…and HENSOLDT keeps focus on ESG to maintain leadership role

5. Updating our medium term guidance Christian Ladurner, Chief Financial Officer

9 month results on track to deliver on our 2022E guidance

Order intake in line with expectations	Excellent revenue performance	Robust order backlog
€1,377m	€1,100m	€5,372m
Strong adjusted EBITDA(1) result	Improved adjusted EBITDA(1) margin (before pass-through)	Successfully decreased net leverage(2)
€126m	14.4%	2.0x

Source: HENSOLDT AG. (1) Adjusted EBITDA / adjusted EBITDA margin excludes certain non-recurring items; (2) Net leverage includes lease liabilities, but excludes pensions

HENSOLDT CMD 2022

HENSOLDT is capitalizing on the new defence environment with a record order backlog and pipeline(1) >30

Source: HENSOLDT AG. (1) Pipeline is defined as total identified opportunities open for tender, based on management estimates of total value of contracts addressable over specified period (unadjusted for win probabilities for HENSOLDT)

It takes time from budgets to orders, but once locked in, they provide reliable long term growth

Updated guidance 2023

	Old 2023 target(5)	New 2023 target
Book-to-bill ratio	>1x	1.1 - 1.2x
Revenue growth(1)	Mid to high single digit	7 - 10%(6) with stronger growth in core revenue excl. pass-through
Adjusted EBITDA margin(2)	~19% before pass-through revenue	~19% before pass-through revenue
Adjusted pre-tax unlevered FCF(3)	NWC: stable, falling slightly as % of revenue Cash tax rate: 28.3%	~70% conversion on adjusted EBITDA
Net leverage(4)	<1.25x	<1.0x
Dividend	30 - 40% of adjusted net income	30 - 40% of adjusted net income

Source: HENSOLDT AG. (1) Average share of pass-through revenue of total revenue was ~10% between 2020A and 2022E; pass-through share of total revenue is expected to be in the mid single-digit percentage range between 2023E and 2025E; (2) Adjusted EBITDA margin excluding certain non-recurring effects such as OneERPnow costs. (3) Adjusted Pre-Tax Unlevered Free Cash Flow is defined as free cash flow excluding certain non-recurring effects such as OneERPnow costs as well as interest, tax and M&A activities; (4) Net leverage includes lease liabilities, but excludes pensions; (5) predated Russian war against Ukraine and announcement special fund by German Government; (6) excluding material M&A

Updated increased medium term guidance

	Old medium term target(4)	New medium term target
Order intake	Orders to grow faster than revenue Book-to-bill ratio >1x	Orders to grow significantly faster than revenue
Revenue growth(1)	Mid single digit	10%(5) average annual growth
Adjusted EBITDA margin(2)	~19% before pass-through revenue	>19% before pass-through revenue
Adjusted pre-tax unlevered FCF(3)	NWC: stable, falling slightly as % of revenue Cash tax rate: 28.3%	70-80% average conversion on adjusted EBITDA
Dividend	30 - 40% of adjusted net income	30 - 40% of adjusted net income

Source: HENSOLDT AG. (1) Average share of pass-through revenue of total revenue was ~10% between 2020A and 2022E; pass-through share of total revenue is expected to be in the mid single-digit percentage range between 2023E and 2025E; (3) Adjusted EBITDA margin excluding certain non-recurring effects such as OneERPnow costs; (4) Adjusted Pre-Tax Unlevered Free Cash Flow is defined as free cash flow excluding certain non-recurring effects such as OneERPnow costs as well as interest, tax and M&A activities; (4) predated Russian war against Ukraine and announcement special fund by German Government;. (5) excluding material M&A

HENSOLDT CMD 2022

Based on order backlog 9M2022, benchmark visibility continues also for 2023

Source: HENSOLDT AG. (1) E.g. spares and service, including portion of expected aftersales in pipeline; (2) New project business includes pipeline; (3) Based on management estimates based on the expected conversion of order backlog and further expected orders into revenue, as well as the expected recurring short-cycle and aftersales business

HENSOLDT Go! Wave 3 to be rolled out between 2023 and 2025

HENSOLDT Go! Wave 2	HENSOLDT Go! Wave 3
• Keep momentum to transform HENSOLDT • Optimize HENSOLDT ü organization end-to-end • Further optimize capital productivity with special focus on cash cycle	• Drive internationalization • Improve supply chain robustness and increase inflation resilience • Increase efficiency further, ü especially for: • Engineering • Cost & overhead • Working capital
End-to-end optimization across all functions	End-to-end optimization across all regions

OneERPnow – the efficient way to handle growth

OneERPnow rollout in waves to de-risk process

Our phased approach distributes costs, risks and workload over the next 5 years

Source: HENSOLDT AG. OneERPnow to be accounted for as non-recurring effect in P&L

Capital allocation

Fund our growth Dividends M&A

By preserving a conservative financial debt profile

Key messages

Sustainable, consistent long term growth Excellent visibility Highly profitable &

cash generating growth

HENSOLDT CMD 2022

HENSOLDT has the potential to double revenue every five years