Quarterly Report • Nov 9, 2023
Quarterly Report
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This English report is for convenience only. In case of discrepancies between the English and the German report, the German report shall prevail.
Russia's war on Ukraine continues to determine the security policy environment in Germany, the EU and NATO. This upheaval in the global order has already left a lasting mark – on the worlds of politics, business and on the people. The so called "Zeitenwende" (turning point) in security policy proclaimed by the Federal Republic of Germany ("Federal Republic"), the main customer of the HENSOLDT Group (hereinafter also referred to as "HENSOLDT" or "the Group") holds extensive opportunities for HENSOLDT. Thus, in the first nine months of the year 2023, several orders of TRML-4D radars, amongst other things for the IRIS-T SLM air defence system, were recorded.
Overall, HENSOLDT`s operating business continued its positive development in the first nine months of the year 2023 and strong order intake could be recorded again. However, with a contract volume of € 1,281 million, the high order intake of the previous year's period of € 1,377 million could not quite be achieved. The main drivers in the current year were in particular orders for TRML-4D radars and orders for equipping the PUMA and Leopard 2 platforms. The high previous year's figure included several key orders for the Eurofighter (service contract C3 and Halcon program) as well as for the equipment of the multi-purpose frigates F126. Revenue increased by 3.2 % (€ 1,136 million; previous year: € 1,100 million) compared to the previous year period. Significant growth was recorded in the core business while revenue from pass-through business was significantly below the previous year's figure. The most important key projects developed as expected. The strong increase in adjusted EBITDA by 19.6 % (€ 151 million; previous year: € 126 million) mainly resulted from an increased revenue volume, driven primarily by the core business, and a slower increase in costs in relation to the increase of revenues.
In the context of an early and long-term succession plan, the Supervisory Board of HENSOLDT AG appointed Oliver Dörre as successor of Thomas Müller as the Chairman of the Management Board of HENSOLDT AG in its meeting on 21 March 2023. Oliver Dörre is currently CEO and Chairman of the Executive Board at Thales Deutschland and will initially join the Management Board of HENSOLDT as an additional member no later than 1 January 2024. Upon resignation of Thomas Müller, expected on 1 April 2024, a few months before the regular end of his appointment, Oliver Dörre will take over as Chairman of the Management Board. Until then, Thomas Müller and Oliver Dörre will collaborate closely to ensure a smooth transition.
In the course of the regular review of the composition of the DAX index family, Deutsche Börse AG announced in March 2023 the inclusion of the share of HENSOLDT AG in the MDAX. With effect from 20 March 2023, the share of HENSOLDT AG is listed in the MDAX.
HENSOLDT AG held its annual general meeting in presence on 12 May 2023. Based on the decision of the annual general meeting, a total amount of € 31.5 million (€ 0.30 per share) was distributed as dividend to the shareholders of HENSOLDT AG. Likewise, based on a resolution of the annual general meeting, Marco R. Fuchs (CEO of OHB SE) was elected to the Supervisory Board. The Supervisory Board elected Reiner Winkler as its new chairman. He succeeds the previous chairman Johannes P. Huth, who resigned from his mandate at the end of the general meeting on 12 May 2023.
As in the World Bank's view the USA, China and other major economies turned out to be more resilient than forecasted, the World Bank in its most recent global economic outlook from June 2023 expected the global economy to grow by 2.1 % in 2023. The International Monetary Fund ("IMF") was significantly more confident in its last outlook published in October 2023 and left the growth rate forecast for the current year at 3.0 %. For 2024, the World Bank anticipated a 2.4 % increase in world economic growth, which was also significantly below the latest IMF forecast of 2.9 %. As a reason for the continued decelerated growth, the World Bank particularly states risks related to high inflation, tightened monetary policy of the central banks and more restrictive credit conditions.
The EU Commission, which was still optimistic in its spring outlook for 2023 that the effects of high energy prices and supply bottlenecks as a result of the Ukraine war had largely been overcome, corrected its growth forecast for the Eurozone downwards to 0.8 % in its latest summer forecast and is thus clearly more sceptical about the economic situation of the Euro countries. The Commission sees the reasons for the correction in particular in the consequences of the Ukraine, rising interest rates, continuing high inflation and weakening consumption in view of high and rising consumer prices. This applies regardless of falling energy costs and a strong labour market in the Euro countries. For the coming year 2024, the Brussels-based authority expects a mild upturn in economic growth to 1.4 % in all EU countries.
According to the EU Commission, economic growth in the Eurozone in 2023 will be slowed down, among other things, by the decline in German gross domestic product, which, according to several leading economic research institutes, will decline by 0.4 % in 2023 or even by 0.5 % according to the IMF forecast. With growth rates around 1.0 % for 2024, the institutes are forecasting a recovery of the German economy, which is suffering particularly from high energy costs and weak global trade in the current year.
Russia's war of aggression against Ukraine and the situation in the Middle East determine the security policy environment in Germany, the EU and NATO. The time factor is a top priority for procurement and defence planning. To this end, a revision of the procurement process in the Federal Ministry of Defence has been completed and the results shall be presented in the coming months. The Ministry of Defence is still planning to conclude numerous contracts and procurement orders in 2023.
The cabinet's draft for the 2024 German federal budget provides for an increase in section 14 by approx. € 1.7 billion to € 51.8 billion. The objective of the government of the Federal Republic of Germany is to achieve the NATO's 2 % goal using the regular budget as well as the special fund for the German Military ("German Bundeswehr"). In order to reflect the time factor and the achievement of the 2 % goal, the German Military and Special Funds Act ("Bundeswehrfinanzierungs- und Sondervermögensgesetz") was revised. The purpose of the special fund was expanded to include "significant measures in the area of armament investments including related research, spending for ammunition, infrastructure projects as well as projects in the fields of information technology to protect and ensure access to key technology and logistics for the German Military".
As part of the European Sky Shield Initiative (ESSI) for air defence, Estonia and Latvia became in September 2023 the first ESSI member states besides Germany to sign a framework agreement for the procurement of the IRIS-T SLM ground-based medium-range air defence system, in which HENSOLDT is participating with the TRML -4D radar. In the meantime, 19 European countries have declared their intention to join ESSI.
At a meeting of defence ministers in France in September 2023, Germany and France decided on further steps in the Main Ground Combat System (MGCS) cooperation project. The inspectors from the German and French armed forces signed a "High Level Common Operational Requirements" document by recording the jointly defined requirements of the two armed forces for the future ground combat system. By December, the individual technical development pillars are to be defined in order to assign them to either Germany or France.
By focusing on products available on the market, by ensuring access to key technologies and by participating in development projects such as the Future Combat Air System (FCAS) and MGCS, HENSOLDT's product and competence portfolio opens up business opportunities in all military dimensions and numerous future technologies.
| Order intake | Revenue | Book-to-bill | Order backlog | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First nine months | First nine months | First nine months | 30 Sep. | 31 Dec. | ||||||||
| in € million | 2023 | 2022 % Delta | 2023 | 2022 % Delta | 2023 | 2022 | Delta | 2023 | 2022 | % Delta | ||
| Sensors | 964 | 1,198 | -19.5 % | 952 | 919 | 3.6 % | 1.0x | 1.3x | -0.3x | 4,681 | 4,688 | -0.1 % |
| Optronics | 322 | 185 | 74.7 % | 188 | 184 | 2.2 % | 1.7x | 1.0x | 0.7x | 806 | 692 | 16.6 % |
| Elimination/ Transversal/ Others |
-6 | -6 | -4 | -3 | -15 | -13 | ||||||
| HENSOLDT | 1,281 | 1,377 | -7.0 % | 1,136 | 1,100 | 3.2 % | 1.1x | 1.3x | -0.2x | 5,472 | 5,366 | 2.0 % |
The book-to-bill ratio remained at a high level but was below the previous year period.
1 Defined as ratio of order intake to revenue in the relevant reporting period.
| Profit | Profit margin | ||||
|---|---|---|---|---|---|
| First nine months | First nine months | ||||
| in € million | 2023 | 2022 | % Delta | 2023 | 2022 |
| Sensors | 155 | 105 | 47.0 % | 16.3 % | 11.4 % |
| Optronics | -4 | 21 | -117.6 % | -2.0 % | 11.4 % |
| Elimination/Transversal/Others | – | – | |||
| Adjusted EBITDA | 151 | 126 | 19.6 % | 13.3 % | 11.5 % |
| Depreciation and amortisation | -80 | -78 | -2.7 % | ||
| Non-recurring effects | -22 | -13 | -70.4 % | ||
| Earnings before finance result and income taxes (EBIT) | 49 | 35 | 37.7 % | 4.3 % | 3.2 % |
| Finance result | -38 | -21 | -78.8 % | ||
| Income taxes | -16 | -15 | -5.8 % | ||
| Group result | -5 | -1 | >-200 % | -0.4 % | -0.1 % |
| Earnings per share (in €; basic/diluted) | -0.04 | 0.00 | >-200 % |
▪ Finance result: The increase in the negative finance result mainly resulted from higher interest expenses for the loan (term loan) renewed in the previous year as well as from foreign exchange effects including the results from foreign currency derivatives. A positive effect resulted from higher interest income on bank deposits and from the valuation of interest rate hedging transactions.
2 The profit margins are calculated in relation to the corresponding revenue.
3 Defined as "transaction costs, effects on earnings from purchase price allocations, OneSAPnow-related non-recurring effects as well as other non-recurring effects".
▪ Income taxes: The income taxes comprising a net current tax expense and an income from deferred taxes remained on a comparable level overall compared to the previous year period.
▪ The group result is reflected accordingly in the earnings per share of € -0.04 (previous year: € 0.00).
| 30 Sep. | 31 Dec. | ||
|---|---|---|---|
| in € million | 2023 | 2022 | % Delta |
| Non-current assets | 1,395 | 1,335 | 4.5 % |
| therein: Right-of-use assets | 181 | 140 | 28.8 % |
| Current assets | 1,738 | 1,644 | 5.7 % |
| therein: Inventories | 687 | 516 | 33.1 % |
| therein: Contract assets | 304 | 182 | 66.8 % |
| therein: Trade receivables | 265 | 323 | -18.1 % |
| therein: Cash and cash equivalents | 333 | 460 | -27.5 % |
| Total assets | 3,133 | 2,979 | 5.2 % |
| Equity | 592 | 616 | -4.0 % |
| therein: Other reserves | 96 | 82 | 17.3 % |
| therein: Retained earnings | -95 | -55 | -71.6 % |
| Non-current liabilities | 1,205 | 1,160 | 3.9 % |
| therein: Non-current lease liabilities | 183 | 140 | 31.1 % |
| Current liabilities | 1,337 | 1,203 | 11.1 % |
| therein: Current financing liabilities | 123 | 12 | > 200,0 % |
| therein: Trade payables | 423 | 379 | 11.5 % |
| Total equity and liabilities | 3,133 | 2,979 | 5.2 % |
4 Only significant changes to balance sheet items are explained
| First nine months | ||||
|---|---|---|---|---|
| in € million | 2023 | 2022 | Delta | |
| Cash flows from operating activities | -113 | -15 | -98 | |
| Cash flows from investing activities | -76 | -70 | -6 | |
| Free cash flow | -189 | -85 | -104 | |
| Non-recurring effects | 21 | 9 | 12 | |
| Interest, income taxes and M&A activities | 41 | 27 | 14 | |
| Adjusted pre-tax unlevered free cash flow | -126 | -49 | -77 | |
| Cash flows from financing activities | 62 | -62 | 125 |
5 Defined as"Transaction costs, OneSAPnow-related non-recurring effects as well as other non-recurring effects".
6 Defined as "Interest paid" (including interest on lease liabilities) and "Interest received" as reported in the Consolidated Statement of Cash Flows
7 Defined as "Income tax payments / refunds" as reported in the Consolidated Statement of Cash Flows
8 Defined as sum of "Proceeds from sale of intangible assets and property, plant and equipment", "Proceeds from disposals of associates, other investments and non-current financial assets", "Acquisition of associates, other investments and other noncurrent financial assets", "Acquisition of subsidiaries net of cash acquired" and "Other cash flows from investing activities" as reported in the Consolidated Statement of Cash Flows
The cash flows from financing activities improved compared to the previous year period, which was mainly due to the drawdown of the € 100 million revolving credit facility. In the previous year period transaction costs in the course of adjustments to the financing conditions led to cash outflows. In addition, the dividend payment to the shareholders of HENSOLDT AG in 2023 in the amount of € 31.5 million exceeded the dividend payment of the previous year period with € 26.3 million.
For the fiscal year 2023, the management expects moderate growth in order intake in comparison to the previous year due to budget increases and initial orders from the special fund.
In the business planning for the Group, the management expects a moderate organic growth in revenue for the fiscal year 2023 to about € 1.850 million mainly due to the order backlog which still remains on a high level.
Overall, the management expects a book-to-bill ratio on the previous year's level of between 1.1 and 1.2.
Adjusted EBITDA is expected by the management to increase moderately in the fiscal year 2023.
These expectations assume unchanged underlying conditions compared to year-end 2022.
The outlook depends heavily on the circumstances mentioned in the opportunities and risks report and is based on the Group's multi-year business plan in addition to the macroeconomic developments described. This was described in the combined management report of HENSOLDT AG for the fiscal year ended 31 December 2022.
Overall, the Management Board is confident that HENSOLDT can build on the successful fiscal year 2022 and expects another positive development for 2023.
Apart from the specification of the expected revenue growth in the first half year of 2023, the outlook remains unchanged compared to the year-end 2022.
The combined management report of HENSOLDT AG for the fiscal year ended 31 December 2022 contains an explanation of the essential properties of HENSOLDT's risk and control management. The detailed explanations included accounting-related internal controls, risk management, certain risks that could have a negative impact on HENSOLDT and the main opportunities.
HENSOLDT has to manage complex and long-running projects with high technical requirements and large volumes. Each project has a variety of inherent operational risks. All risk categories, such as technical risks, risks regarding human resources or economic risks, are recorded, assessed, hedged and continuously monitored in accordance with HENSOLDT's existing risk management system. The corresponding operational risks reported in the combined management report of HENSOLDT AG for the fiscal year ended 31 December 2022 remained essentially unchanged. This approach also applies to HENSOLDT's key projects. The status of the key projects is regularly reported to the Supervisory Board. If necessary, external audits with different focal points are also commissioned.
The challenges in the labour market of attracting and retaining highly qualified technical personnel for both segments as well as qualified sales employees and efficient management continue to represent a risk for HENSOLDT, which, however, remains essentially unchanged compared to year-end 2022.
Based on the expected global increase of attack attempts on IT networks due to the war in Ukraine, the associated sanctions against Russia and the additionally deteriorating geopolitical situation, particularly between Russia, the USA, China and Europe, the likeliness of successful cyber-attacks is generally estimated to be higher than in the past. Such increased risk from cyber-attacks worldwide also represents an increased risk for HENSOLDT. To counter this, a project group was set up in 2022 to define and implement appropriate measures. Furthermore, the HENSOLDT Group expanded its cybersecurity measures. This includes the expansion of its cybersecurity team, the expansion of the budget, security monitorings, a Group-wide security team, penetration testing, and regular internal IT audits as well as external assessments.
HENSOLDT continuously monitors the further effects of the war in Ukraine. The still existing consequences thereof particularly include delivery bottlenecks of materials, increasing prices of energy products, but also of other goods and services and, not least, inflation. These consequences constitute increasing influential factors for HENSOLDT's risk situation in the functional and operating area, leave their marks on the supply chains and result in rising cost of production. Since the start of the changed situation, HENSOLDT's established task forces consistently analyse the impact on costs of production, supply chains and contracts with customers at HENSOLDT and reduce or avoid effects as early as possible by concrete and detailed measures. These task forces are continuously analysing and monitoring, in detail, potential further effects from the risks mentioned above. This includes also the still tense geopolitical situation and possible other consequences for HENSOLDT.
The consequences of inflation and the risks from the supply chain situation have been stable for companies in the Sensors segment since the year-end 2022. In the Optronics segment, the possible effects of inflation were reduced due to globally stabilizing inflation values. In order to counteract the effects of the supply chain situation in the Optronics segment and to monitor the remaining and essentially stable risks, close monitoring is carried out so that appropriate measures can be taken.
Opportunities arising from the special fund for the German Bundeswehr, increases in defence budgets and increasing military investments worldwide oppose these risks.
The effects on HENSOLDT of the resolution passed by the German Bundestag to establish a special fund for the German Bundeswehr in the amount of € 100 billion and of the increase in German defence spending to 2 % of the gross domestic product are being continuously examined. For 2023 and 2024, the Ministry of Defence is planning numerous contracts and assignments. Through Germany's National Security Strategy of 21 June 2023, the design and implementation of procurement programs as well as the focal points in procurement are becoming increasingly more concrete.
Drawings from the war in Ukraine, the focus of NATO in its new strategic concept and changed operational doctrines of armed forces worldwide additionally strengthen the development of HENSOLDT's opportunities in connection with the defence technology. The rapid creation of a comprehensive situational picture, the distribution of information in a network of connected sensors and effectors in a mission-oriented manner and the control over the electromagnetic spectrum are highly demanded capabilities for which HENSOLDT is extremely well positioned with its portfolio. Increases in defence budgets and increasing military investments worldwide are creating significant opportunities for HENSOLDT and the chance to make a contribution to security and sustainability. What remains is the opportunity of the diversification of the product range and the expansion of the service business as well as HENSOLDT's ability to act as a leading innovator within its industry.
The possible impacts of the conflict in the Middle East on the security policy environment, on the overall economic situation and on the companies of the HENSOLDT Group cannot yet be estimated and are continuously analysed by HENSOLDT.
The Management Board currently assesses the overall opportunity and risk situation of HENSOLDT mainly as stable, and thus unchanged compared to year-end 2022.
1 Consolidated Income Statement
| First nine months | ||||
|---|---|---|---|---|
| in € million | 2023 | 2022 | ||
| Revenue | 1,136 | 1,100 | ||
| Cost of sales | -916 | -896 | ||
| Gross profit | 220 | 205 | ||
| Selling and distribution expenses | -83 | -80 | ||
| General administrative expenses | -76 | -66 | ||
| Research and development costs | -20 | -25 | ||
| Other operating income | 17 | 15 | ||
| Other operating expenses | -14 | -14 | ||
| Other result from investments | 5 | – | ||
| Earnings before finance result and income taxes (EBIT) | 49 | 35 | ||
| Interest income | 17 | 4 | ||
| Interest expense | -48 | -32 | ||
| Other finance income / costs | -7 | 6 | ||
| Finance result | -38 | -21 | ||
| Earnings before income taxes (EBT) | 11 | 14 | ||
| Income taxes | -16 | -15 | ||
| Group result | -5 | -1 | ||
| thereof attributable to the owners of HENSOLDT AG | -4 | 0 | ||
| thereof attributable to non-controlling interests | -1 | -1 | ||
| Earnings per share | ||||
| Basic and diluted earnings per share (in €) | -0.04 | 0.00 |
| First nine months | ||
|---|---|---|
| in € million | 2023 | 2022 |
| Group result | -5 | -1 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Measurement of defined benefit plans / plan assets | 28 | 247 |
| Tax on items that will not be reclassified to profit or loss | -8 | -70 |
| Subtotal | 20 | 177 |
| Items that will be reclassified to profit or loss | ||
| Difference from currency translation of financial statements | -7 | 4 |
| Subtotal | -7 | 4 |
| Other comprehensive income net of tax | 13 | 181 |
| Total comprehensive income | 8 | 181 |
| thereof attributable to the owners of HENSOLDT AG | 10 | 181 |
| thereof attributable to non-controlling interests | -2 | -0 |
| ASSETS | 30 Sep. | 31 Dec. |
|---|---|---|
| in € million | 2023 | 2022 |
| Non-current assets | 1,395 | 1,335 |
| Goodwill | 658 | 658 |
| Intangible assets | 376 | 384 |
| Property, plant and equipment | 129 | 121 |
| Right-of-use assets | 181 | 140 |
| Other investments and other non-current financial assets | 24 | 22 |
| Non-current other financial assets | 11 | 1 |
| Other non-current assets | 2 | 2 |
| Deferred tax assets | 14 | 6 |
| Current assets | 1,738 | 1,644 |
| Other non-current financial assets, due on short-notice | 0 | 0 |
| Inventories | 687 | 516 |
| Contract assets | 304 | 182 |
| Trade receivables | 265 | 323 |
| Other current financial assets | 18 | 20 |
| Other current assets | 122 | 133 |
| Income tax receivables | 10 | 10 |
| Cash and cash equivalents | 333 | 460 |
| Total assets | 3,133 | 2,979 |
| EQUITY AND LIABILITIES | 30 Sep. | 31 Dec. |
|---|---|---|
| in € million | 2023 | 2022 |
| Share capital | 105 | 105 |
| Capital reserve | 472 | 472 |
| Other reserves | 96 | 82 |
| Retained earnings | -95 | -55 |
| Equity held by shareholders of HENSOLDT AG | 579 | 604 |
| Non-controlling interests | 13 | 13 |
| Equity, total | 592 | 616 |
| Non-current liabilities | 1,205 | 1,160 |
| Non-current provisions | 287 | 282 |
| Non-current financing liabilities | 620 | 619 |
| Non-current contract liabilities | – | 11 |
| Non-current lease liabilities | 183 | 140 |
| Other non-current financial liabilities | 0 | 3 |
| Other non-current liabilities | 9 | 11 |
| Deferred tax liabilities | 105 | 94 |
| Current liabilities | 1,337 | 1,203 |
| Current provisions | 174 | 181 |
| Current financing liabilities | 123 | 12 |
| Current contract liabilities | 488 | 488 |
| Current lease liabilities | 18 | 18 |
| Trade payables | 423 | 379 |
| Other current financial liabilities | 6 | 4 |
| Other current liabilities | 85 | 101 |
| Tax liabilities | 18 | 19 |
| Total equity and liabilities | 3,133 | 2,979 |
| First nine months | ||
|---|---|---|
| in € million | 2023 | 2022 |
| Group result | -5 | -1 |
| Depreciation, amortisation and impairments of non-current assets | 86 | 78 |
| Impairments (+) / reversals of impairments (-) of inventories, trade receivables and contract assets | 2 | 1 |
| Financial expenses (net) | 25 | 23 |
| Other non-cash expense / income | 1 | -7 |
| Change in | ||
| Provisions | -2 | 4 |
| Inventories | -176 | -122 |
| Contract balances | -133 | -84 |
| Trade receivables | 55 | 59 |
| Trade payables | 45 | 44 |
| Other assets and liabilities | 10 | 1 |
| Interest paid | -30 | -19 |
| Interest received | 5 | 0 |
| Income tax expense (+) / income (-) | 16 | 15 |
| Income tax payments (-) / refunds (+) | -10 | -6 |
| Cash flows from operating activities | -113 | -15 |
| Acquisition / addition of intangible assets and property, plant and equipment | -71 | -68 |
| Proceeds from sale of intangible assets and property, plant and equipment | 0 | 0 |
| Proceeds from disposals of associates, other investments and non-current financial assets | 1 | – |
| Acquisition of associates, other investments and other non-current financial assets | -6 | -2 |
| Acquisition of subsidiaries net of cash acquired | -1 | -1 |
| Other | – | 0 |
| Cash flows from investing activities | -76 | -70 |
| Proceeds from financing liabilities to banks | 100 | – |
| Change in other financing liabilities | 8 | -22 |
| Payment of lease liabilities | -14 | -14 |
| Dividend payments | -32 | -26 |
| Dividends on non-controlling interests | – | -0 |
| Other | – | 0 |
| Cash flows from financing activities | 62 | -62 |
| Effects of changes in exchange rates on cash and cash equivalents | -0 | 2 |
| Net changes in cash and cash equivalents | -127 | -145 |
| Cash and cash equivalents | ||
| Cash and cash equivalents on 1 January | 460 | 529 |
| Cash and cash equivalents on 30 September | 333 | 385 |
| Other reserves | ||||||||
|---|---|---|---|---|---|---|---|---|
| in € million | Share capital |
Capital reserve |
Retained earnings |
Remea surement of pensions |
Currency translation |
Subtotal | Non controlling interests |
Total |
| As of 1 January 2023 | 105 | 472 | -55 | 96 | -14 | 604 | 13 | 616 |
| Group Result | – | – | -4 | – | – | -4 | -1 | -5 |
| Other comprehensive income |
– | – | – | 20 | -6 | 14 | -1 | 13 |
| Total comprehensive income |
– | – | -4 | 20 | -6 | 10 | -2 | 8 |
| Dividend payments | – | – | -32 | – | – | -32 | – | -32 |
| Other | – | – | -4 | – | – | -4 | 3 | -1 |
| As of 30 September 2023 | 105 | 472 | -95 | 116 | -19 | 579 | 13 | 592 |
| Attributable to the owners of the HENSOLDT AG | ||||||||
|---|---|---|---|---|---|---|---|---|
| Other reserves | ||||||||
| in € million | Share capital |
Capital reserve |
Retained earnings |
Remea surement of pensions |
Currency translation |
Subtotal | Non controlling interests |
Total |
| As of 1 January 2022 | 105 | 537 | -171 | -51 | -14 | 406 | 11 | 417 |
| Group Result | – | – | 0 | – | – | 0 | -1 | -1 |
| Other comprehensive income |
– | – | – | 177 | 4 | 181 | 0 | 181 |
| Total comprehensive income |
– | – | 0 | 177 | 4 | 181 | -0 | 181 |
| Transactions with non controlling interests and acquisitions through business combinations |
– | – | – | – | – | – | -0 | -0 |
| Dividend payments | – | – | -26 | – | – | -26 | – | -26 |
| Dividends on non controlling interests |
– | – | – | – | – | – | -0 | -0 |
| Other | – | – | -2 | – | – | -2 | 0 | -2 |
| As of 30 September 2022 | 105 | 537 | -198 | 126 | -10 | 559 | 10 | 569 |
The Group operates in two operating segments, Sensors and Optronics.
| First nine months | ||||
|---|---|---|---|---|
| 2023 | ||||
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| Order intake | 964 | 322 | -6 | 1,281 |
| Order backlog | 4,681 | 806 | -15 | 5,472 |
| Book-to-bill-ratio | 1.0x | 1.7x | 1.1x | |
| Revenue from external customers | 950 | 186 | – | 1,136 |
| Intersegment revenue | 2 | 2 | -4 | – |
| Segment revenue | 952 | 188 | -4 | 1,136 |
First nine months
| 2023 | ||||
|---|---|---|---|---|
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| Material non-cash items other than depreciation and amortisation: |
||||
| Impairments | -6 | – | – | -6 |
| Additions to other provisions | -61 | -31 | – | -92 |
| Reversals of other provisions | 5 | 1 | – | 6 |
| 2023 | ||||
|---|---|---|---|---|
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| EBITDA | 147 | -4 | -15 | 129 |
| Effects on earnings from purchase price allocations |
6 | – | – | 6 |
| OneSAPnow-related non-recurring effects1 | – | 0 | 5 | 5 |
| Other non-recurring effects | 1 | – | 10 | 12 |
| Adjusted EBITDA | 155 | -4 | – | 151 |
| Adjusted EBITDA margin2 | 16.3 % | -2.0 % | 13.3 % | |
| Depreciation and amortisation | -66 | -14 | -0 | -80 |
| EBIT | 82 | -18 | -15 | 49 |
| Effects on earnings from purchase price allocations |
27 | 2 | – | 29 |
| OneSAPnow-related non-recurring effects1 | – | 0 | 5 | 5 |
| Other non-recurring effects | 1 | – | 10 | 12 |
| Adjusted EBIT | 110 | -15 | – | 94 |
| Adjusted EBIT margin2 | 11.5 % | -8.2 % | 8.3 % |
1 OneSAPnow-related non-recurring effects comprise expenses in connection with the business-transformation for SAP S/4HANA
2Based on segment revenues
| First nine months | ||||
|---|---|---|---|---|
| 2023 | ||||
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| EBIT | 82 | -18 | -15 | 49 |
| Finance result | -38 | |||
| EBT | 11 |
| 2022 | ||||
|---|---|---|---|---|
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| Order intake | 1,198 | 185 | -6 | 1,377 |
| Order backlog | 4,699 | 681 | -7 | 5,372 |
| Book-to-bill-ratio | 1.3x | 1.0x | 1.3x | |
| Revenue from external customers | 918 | 182 | – | 1,100 |
| Intersegment revenue | 1 | 1 | -3 | – |
| Segment revenue | 919 | 184 | -3 | 1,100 |
| 2022 | ||||
|---|---|---|---|---|
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| Material non-cash items other than depreciation and amortisation: |
||||
| Additions to other provisions | -54 | -34 | – | -88 |
| Reversals of other provisions | 8 | 4 | 0 | 12 |
| 2022 | ||||
|---|---|---|---|---|
| in € million | Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| EBITDA | 104 | 21 | -12 | 113 |
| Transaction cost | 0 | – | – | 0 |
| Other non-recurring effects | 1 | – | 12 | 13 |
| Adjusted EBITDA | 105 | 21 | – | 126 |
| Adjusted EBITDA margin1 | 11.4 % | 11.4 % | 11.5 % | |
| Depreciation and amortisation | -61 | -17 | 0 | -78 |
| EBIT | 43 | 5 | -12 | 35 |
| Effects on earnings from purchase price allocations |
24 | 3 | – | 27 |
| Transaction cost | 0 | – | – | 0 |
| Other non-recurring effects | 1 | – | 12 | 13 |
| Adjusted EBIT | 68 | 8 | – | 76 |
| Adjusted EBIT margin1 | 7.4 % | 4.1 % | 6.9 % |
1Based on segment revenues
| First nine months | |||
|---|---|---|---|
| 2022 | |||
| Sensors | Optronics | Elimination/ Transveral/ Others |
Group |
| 43 | 5 | -12 | 35 |
| -21 | |||
| 14 | |||
The Group's operations and major categories for revenue recognition are described in the Consolidated Financial Statements 2022.
During the first nine months of 2023, revenue increased overall by nearly € 35 million to € 1,136 million compared to € 1,100 million in the in the previous year's period.
| First nine months | ||
|---|---|---|
| in € million | 2023 | 2022 |
| Europe | 1,003 | 935 |
| thereof Germany | 663 | 694 |
| Middle East | 77 | 75 |
| APAC | 37 | 34 |
| North America | 30 | 27 |
| Africa | 11 | 36 |
| LATAM | 1 | 4 |
| Other regions / consolidation | -24 | -10 |
| Total | 1,136 | 1,100 |
HENSOLDT AG
Investor Relations Willy-Messerschmitt-Strasse 3 82024 Taufkirchen Germany Phone: +49 89 51518-2057 E-Mail: [email protected]
Management Board: Thomas Müller (Chairman), Christian Ladurner, Dr. Lars Immisch and Celia Pelaz Perez
Registry court: District court of Munich, HRB 258711
This report contains forecasts based on assumptions and estimates by the management of HENSOLDT. These statements based on assumptions and estimates are in the form of forward-looking statements using terms such as "believe", "assume", "expect" and the like. Even though the management believes that these assumptions and estimates are correct, it is possible that actual results in the future may deviate materially from such assumptions and estimates due to a variety of factors. The latter may include changes in the macroeconomic environment, in the statutory and regulatory framework in Germany and the EU, and changes within the industry. HENSOLDT does not provide any guarantee or accept any liability or responsibility for any divergence between future developments and actual results, on the one hand, and the assumptions and estimates expressed in this semi-annual financial report.
HENSOLDT has no intention and undertakes no obligation to update forward-looking statements in order to adjust them to actual events or developments occurring after the date of this report.
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 report is a quarterly statement according to Sec. 53 of the Exchange Rules for the Frankfurter Wertpapierbörse.
This English report is for convenience only. In case of discrepancies between the English and the German report, the German report shall prevail.
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