HENSOLDT AG

Investor Presentation • Nov 22, 2023

HENSOLDT Setting up for long-cycle high growth

Capital Markets Day 2023

Ulm, 22nd of November 2023

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, 2023 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

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Agenda

1.	Introduction and Key Messages	Thomas Müller Chief Executive Officer
2.	Defence environment and HENSOLDT markets	Celia Pelaz Chief Strategy Officer
3.	Technology-driven growth	Celia Pelaz Chief Strategy Officer
4.	Portfolio development strategy	Celia Pelaz Chief Strategy Officer
5.	Industrialising the opportunity	Lars Immisch Christian Ladurner Chief HR Officer Chief Financial Officer
6.	Financial and capital allocation framework update	Christian Ladurner Chief Financial Officer

1. Introduction and Key Messages

Thomas Müller, Chief Executive Officer

On track to deliver a record 2023

Strong order backlog of €5.5bn

Very high visibility on revenue

Efficient project execution and significant increase of core revenue FY 2023 and mid-term guidance confirmed

Excellent profitability

High visibility from orders and pipeline

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)

Pipeline weighted to international and European opportunities

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)

Source: HENSOLDT AG / RSA.

HENSOLDT setting up for long-cycle high-growth phase

(1) Growth refers to accessible electronics market growth 2023E - 2028F; (2) Accessible market growth 2023E – 2028F not including Germany; (3) Multiple of accessible market growth over topline defence spending growth (4) Order backlog as of 9M 2023; (5) 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); (6) adjusted EBITDA margin excludes certain non-recurring items

HENSOLDT technology and capabilities core to future warfare and security

• Battlefields are becoming increasingly interconnected
• All domains are becoming equally important

▪ Every platform is a sensor

▪ New sensors (e.g. OSINT) are fully integrated

▪ C2, sophisticated EW and cyber resilience are core of capability requirements.

2. Defence environment and HENSOLDT markets

Celia Pelaz, Chief Strategy Officer

HENSOLDT CMD 2023

Geopolitical tensions and operational trends driving growth

Source: RSAdvisors. Note: All figures based on 2023F to 2028F; Excludes Russia, China, Venezuela, Syria, Libya and North Korea; Accessible market refers to the portion of the addressable market that is accessible to HENSOLDT

Sensor demand growth is structural

High growth outlook across all regions

Growth consistent across sensor capabilities

Source: HENSOLDT AG

Orders momentum remains strong

Case study NNbS

Flexible and adaptive go-to-market strategy

HENSOLDT leads Germany's sensors capabilities

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Domestic German position strong and broad

Source: Renaissance Strategic Advisors, Bundeswehr, HENSOLDT AG. Note: All based on current estimates and subject to change. (1) No Award/no order intake planned for HENSOLDT yet; (2) Original equipment manufacturer

Current orders demonstrate technology leadership in core German market

Source: HENSOLDT AG

European partnering is core to our success

Partnerships key to European success

Recent orders demonstrate enduring European position

International markets a significant opportunity

Source: HENSOLDT AG

Range of approaches being deployed internationally

Recent international success is just the beginning

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3. Technology-driven growth Celia Pelaz, Chief Strategy Officer

HENSOLDT technologies are critical across battlespace domains

[https://youtu.be/awTXGOUK0Ag]

Customer priorities focused on three key functional areas driven from ongoing customer intimacy

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SIGINT sensor development example: portfolio development leveraging synergies of a common architecture

Optronics' close understanding of customer priorities and requirements solidifies position on next generation platforms

Digitalization in Optronics

Example: Ground Based Systems

Reconnaissance, self-protection & convoy protection

Sensor fusion for vehicles

https://www.youtube.com/watch?v=rkdCn_gQyyg

Source: HENSOLDT AG

HENSOLDT will continue to prioritise R&D investment

Around 15% of revenue to be invested sustainably

(1) In % of revenue

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.

HENSOLDT invests prioritized in technology and capabilities

Based on decades of experience in Sensor Data Fusion we invest into AI and MDO-enabling tech and capabilities

Strong focused R&D
Multi Domain Operations		Further invest into Sensor Data Fusion matching Multi Domain Operations requirements
Artificial Intelligence		AI development across all business for all relevant products and solutions
Next Generation Products		Targeted R&D for Next Generation products and solutions
Future Technologies		R&T focused on identified future required key technologies

4. Portfolio development strategy Celia Pelaz, Chief Strategy Officer

We pursue multiple vectors for portfolio expansion to enhance depth and market position

5. Industrialising the opportunity Christian Ladurner, Chief Financial Officer Dr. Lars Immisch, Chief HR Officer

Opening key messages

✓ Industrialising technology is in our DNA

✓ We have a strong workforce and industrial footprint

✓ Careful and strategic investments are being made to maximise our growth opportunities

✓ We are tooled for and focused on continuous improvement

✓ Talent is a priority where we invest time and effort in developing our people

Consistently investing in the asset and employee base

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HENSOLDT GO! Continues as we constantly strive to improve

Key transformation levers to become more Industrial, Agile & Resilient

HENSOLDT Go! Wave 1	HENSOLDT Go! Wave 2	HENSOLDT Go! Wave 3 focuses on the right topics to prepare for future growth
Optimizing individual organization	End-to-end optimization across all functions
▪ Carve out from Airbus ▪ Growth and organizational efficiency within individual functions	▪ Optimize HENSOLDT
	end-to-end ▪ Further optimize capital productivity	1. Industrial	2. Agile	3. Resilient
▪ Optimized capital productivity with special	with special focus on cash cycle	Industrialize Key Products	Engineering Efficiency	Supply Chain Robustness
focus on cash cycle			With key initiatives, HENSOLDT will become more industrial, agile and resilient

Industrialising our technology is a core competency

Integrated industrialization process

Source: HENSOLDT AG

Engineering enhancement improvement is in our DNA

Key contributor to the HENSOLDT business targets

Externalization of existing FTE gap and future growth

Externalization Operating Model Modularization

Ability to deliver

Integrated develop-to-deliver process

Cross-divisional optimization through SDF & MDO centric modularization & architecture standards

Our supply chain is robust and we continue to improve

Key areas for supply chain robustness @ HENSOLDT

Further strengthen proactive management of supply issues and disruptions

Further stabilization of supply chain planning and improve availability of materials

Further improve on-time delivery rate towards customers (OTD)

Improve supplier performance to reduce cost of non-quality

Source: HENSOLDT AG

Intensify involvement and improved collaboration of procurement and supplier quality with other functions

Global sourcing strategy aligned between procurement and sales to support offset strategies

TRML-4D industrialisation being well executed

Case study #1

HENSOLDT Optronics new state-of-the-art campus

Case study #2

Rationale for move and benefits

• State-of-the-art facilities
• Consolidates Optronics team across facilities
• Enhanced production capacity to serve growing demand
• Improved efficiency in production, engineering and program management
• Estimated one-off effort in total of mid-double digit million Euro amount across 2024/2025, mainly capex

Optronics campus

• Leased from real estate company
• Net floor space: 31,600 sqm
• Employees: c.850 (flexible expansion option)
• Start of Construction: Q2 2023
• Moving: Q4 2024

OneSAPnow – an important enabler to support execution of our growth

Digital products & services Digital enterprise Digital work and culture

Source: HENSOLDT AG

OneSAPnow rollout in waves to de-risk process

Structured approach to skills and competence development

Source: HENSOLDT AG

How trainee and students programs contribute …

• Significant growth of 65% since 2017
• HENSOLDT tailored student programs in close cooperation with universities
• Implementation of HENSOLDT-specific degree programme e.g. Embedded Systems Aerospace Engineering
• International cross-location student exchanges (South Africa, Great Britain, Germany, other)

How learning needs are approached ...

High Level of Learning & Development Investment

• Majority of eLearnings relate to mandatory trainings, general Soft and Hard Skills development
• Internal Trainings focussed on HENSOLDT specific learning content conducted by internal experts
• More than 1000 internal & external Training Events
• External training investments mainly (more than 70 %) for technical upskilling along strategic workforce planning
• Custom tailored System Engineering development paths implemented

Ecosystems being essential to combine external and internal strengths...

Airborne radars, ground-based radar, security radar, naval radar

Airborne optronics, vehicle optronics, maritime optronics, high-performance optronics, optronic sensor devices

Radar Optronics Spectrum Dominance

Receivers, direction finders, electronic warfare systems, cyber and data analytics systems

Source: HENSOLDT AG

6. Financial and capital allocation framework update

Christian Ladurner, Chief Financial Officer

9-month results on track to deliver on our 2023E guidance

Source: HENSOLDT AG. (1) Adjusted EBITDA / adjusted EBITDA margin excludes certain non-recurring items; (2) Core revenue is defined as revenues before pass-through; (3) Net leverage includes lease liabilities, but excludes pensions;

Short and medium term guidance reconfirmed

	2023 target(5)	Medium term target(5)
Book-to-bill ratio(1) / Order intake	1.1x - 1.2x	Orders to grow significantly faster than revenue
Revenue growth	~ €1,850m with stronger growth in core revenue	10% average annual growth
Adjusted EBITDA margin(2)	~19% before pass-through revenue	>19% before pass-through revenue
Adjusted pre-tax unlevered FCF(3)	~70% average conversion on adjusted EBITDA	70% - 80% average conversion on adjusted EBITDA
Net leverage(4)	≤1.0x	n/a
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 Transaction costs, OneSAPnow-related non-recurring effects as well as other non-recurring effects. (3) Adjusted Pre-Tax Unlevered Free Cash Flow is Defined as free cash flow adjusted for non-recurring effects as well as interest, tax and M&A activities. (4) Net leverage includes lease liabilities, but excludes pensions; (5) excluding material M&A.

Based on order backlog 9M2023, benchmark visibility continues also for 2024

Revenue coverage 2024E – 2026E

~85% revenue for 2024E covered(3)

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

We expect revenue split to be more balanced in the longer term

Source: HENSOLDT AG. (1) Based on management estimates on the expected conversion of order backlog and further expected orders into revenues

Robust margin and cash conversion whilst investing

Margin discipline and cash generation potential

Source: HENSOLDT AG. (1) Adjusted EBITDA / adjusted EBITDA margin excluding certain non-recurring effects such as Transaction costs, OneSAPnow-related non-recurring effects as well as other non-recurring effects. (2) excluding material M&A; (3) Conversion rate of adjusted Pre-Tax Unlevered Free Cash Flow on adjusted EBTIDA. Adjusted Pre-Tax Unlevered Free Cash Flow is defined as free cash flow adjusted for non-recurring effects as well as interest, tax and M&A activities.

Capital allocation framework

Key messages

Sustainable, consistent long term growth Excellent visibility Highly profitable &

cash generating growth

7. Closing remarks Thomas Müller, Chief Executive Officer

Management priorities for HENSOLDT over next 3 years to underpin long-cycle

HENSOLDT priorities	Key KPIs		Measures
		Today 3 years
Lock in new contracts and convert	Revenue growth Book-to-Bill	10%(3) 7-10% 1.1-1.2x >1x	▪ Maintain strong order intake ▪ Orders to grow significantly faster than revenue
Further internationalisation	Share of international portfolio	41% growing	▪ Solidify international presence in select high-growth markets
Maintain strong margin discipline through efficient execution	EBITDA Margin(1) (before pass-through) (2) FCF Conversion	~19% >19% 70% 70 - 80%	▪ HENSOLDT Go! Wave 3 to drive end-to-end optimisation across all regions
Reinvest for growth	R&D % Sales Capex % Sales	5% ~5% ~2% ~2%	▪ Organic and opportunistic M&A investments supporting growth strategy

(1) Adjusted EBITDA margin excluding certain non-recurring effects such as Transaction costs, OneSAPnow-related non-recurring effects as well as other non-recurring effects. (2) Adjusted Pre-Tax Unlevered Free Cash Flow divided by adj. EBITDA; Adjusted Pre-Tax Unlevered Free Cash Flow is Defined as free cash flow adjusted for non-recurring effects as well as interest, tax and M&A activities; 3) in average

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