Rheinmetall AG — Call Transcript 2016

May 12, 2016

THE TECHNOLOGY GROUPFOR SECURITY AND MOBILITY

Conference Call Q1 2016

Düsseldorf |May 12, 2016

Highlights Q1 2016Strong order backlog, stable sales development, earnings progressing

Key figures Q1 2016

l l i i i E U R n m o n	Q 1 2 0 1 5	Q 1 2 0 1 6	∆ Q 2 0 6 1 1	/ Q 2 0 1 1 5
d b k l O r e r a c o g	0 0 7, 7	3 1 7, 7	2 4 7 +	3 % +
l S a e s	1, 1 7 3	1, 1 8 0	7 +	% 1 +
E B I T D A	7 1	8 6	1 5 +	2 1 % +
( d ) E B I T t r e p o r e	2 2	3 1	9 +	% 4 1 +
i i % E B I T m a r g n n	1. 9	2. 6	0 7 + p p
E B T	6	1 7	1 1 +	1 8 3 % +
G i t r o u p n e n c o m e	5	1 2	7 +	1 4 0 % +
h i i E E U R a r n n g s p e r s a r e n	0 2 0	0 3 2	0 1 2 +	% 6 0 +
( ) l h E M 3 1 m p o y e e s a r c	2 0, 4 4 2	2 0, 7 5 9	3 1 7 +	2 % +

Cash flow statement

l l i E U R i i n m o n	Q 1 2 0 1 5	Q 2 2 0 1 5	Q 3 2 0 1 5	Q 4 2 0 1 5	Q 1 2 0 1 6	∆ Q 1 / 2 0 1 6 2 0 1 5
G i t r o u p n e n c o m e	5	2 9	3 0	9 6	1 2	7 +
/ d A i i i i t t t m o r z a o n e p r e c a o n	4 9	0 5	4 9	5 5	5 5	6 +
h l C i i a n g e n p e n s o n a c c r u a s	0	1	0	2	6 1 -	6 1 -
h f l C a s o w	5 4	8 0	7 9	1 5 3	5 1	3 -
h k l d i i i C t a n g e s n o r n g c a p a a n w h i t t o e r e m s	2 0 2 -	1 0 0 -	8	2 6 7	2 6 2 -	6 0 -
h d i i N t t e c a s s e n o p e r a n g u i i i t t a c e s v	1 4 8 -	2 0 -	8 7	4 2 0	2 1 1 -	6 3 -
f f h l d d C i i t t t a s o u o w o r a o n s o b l b l d i i i t t t a n g e a n n a n g e a s s e s	5 6 -	5 5 -	7 8 -	1 2 1 -	5 2 -	4
f f h l i F t r e e c a s o r o m o p e r a o n s w	2 0 4 -	7 5 -	9	2 9 9	2 6 3 -	5 9 -

Pension obligations – set-up of a CTA

• Rheinmetall decided to start the external funding of German pension obligations and to establish a "Contractual Trust Arrangement" (CTA) for the Group
• In January 2016, the CTA was initially funded with an amount of EUR 30 million
• Main goals of the CTA:
• Strengthening of the balance sheet
• Reduction of capital market impacts on equity capital
• Long-term target: external funding of > 50% for German pension obligations

Highlights Q1 2016Sales slightly reduced, profitability stable

Key figures Q1 2016

l l i i i E U R n m o n	Q 1 2 0 1 5	Q 1 2 0 1 6	∆ Q 2 0 6 1 1	/ Q 2 0 1 1 5
d k O i t r e r n a e	6 8 9	6 6 2	2 7 -	4 % -
b k l ( h ) d O M 3 1 r e r a c o g a r c	4 0 7	4 5 2	4 5 +	% 1 1 +
l S a e s	6 6 4	6 5 4	1 0 -	2 % -
E B I T D A	8 3	8 5	2 +	2 % +
( d ) E B I T t r e p o r e	5 5	5 2	3 -	% 5 -
E B I T i i % m a r g n n	8 3	8 0	0 3 p p -
h f l f i F t r e e c a s o w r o m o p e r a o n s	2 6 -	1 3 9 -	1 1 3 -
l ( h ) E M 3 1 m p o e e s a r c y	1 0, 9 3 2	1 0, 8 9 4	3 8 -	% 0 -

Sales affected by partially weaker demandEBIT margin at 8.0%

China: LV production continues to grow, but with reduced ratesStable performance of Chinese joint ventures

* WFOE = Wholly Foreign-Owned Enterprise ** Including 100% figures of the 50/50 joint ventures, consolidated at equity

Global alliance with RikenAutomotive acquires 30% in Riken Automobile Parts in China

Riken Automobile Parts (Wuhan) Co. Ltd.

• Strengthening of the existing strategic partnership concerning development and marketing with Riken Corp., Tokyo
• Automotive took over 30 % of Riken Automobile Parts (Wuhan) in March 2016
• Riken Automobile Parts: established 2004; 12,000 m² production facility in Wuhan, province of Hubei, China; workforce of 300 persons; production of piston rings, mainly for automotive customers in China

Highlights Q1 2016Strong order inflow, growing sales and improved earnings

Key figures Q1 2016

l l i E U R i i n m o n	Q 1 2 0 1 5	Q 1 2 0 1 6	∆ Q 1 2 0 1 6	/ Q 1 2 0 1 5
d k i O t r e r n a e	5 4 2	9 4 8	4 0 6 +	% 7 5 +
( ) d b k l h O 3 1 M r e r a c o g a r c	6, 6 2 9	6, 8 6 5	2 3 6 +	4 % +
l S a e s	0 9 5	2 6 5	1 7 +	3 % +
E B I T D A	7 -	5	1 2 +
( ) d E B I T t r e p o r e	2 8 -	1 7 -	1 1 +
i i % E B I T m a r g n n	5. 5 -	3. 2 -	2. 3 + p p
h f l f i F t r e e c a s o r o m o p e r a o n s w	1 6 8 -	1 0 4 -	6 4 +
( ) l h E M 3 1 m p o y e e s a r c	9, 3 5 9	9, 7 0 5	3 4 6 +	4 % +

Increasing share of non-European order intakeHigh order book coverage of mid-term future sales

Recent order flowNew orders and frame contracts

^{A i r D e f e n c e M E N A E U R 3 9 0 m i l l i o nA r t i l l e r y a m m u n i t i o n M E N AE U R 8 4 m i l l i o nU p g r a d e L e o p a r d 2 P o l a n dE U R 1 3 0 m i l l i o n}

Sales increase in Weapon and Ammunition and in Vehicle SystemsEarnings improving but seasonally not yet in profit zone

Sales Defencein EUR million

Operational earnings Defence in EUR million

Short-term perspective Outlook fiscal year 2016 confirmed

	l S i a e s	b l l i i € n o n	O i t p e r a o	l i n a m a r g n
	2 0 1 5	2 0 1 6	2 0 1 5	2 0 1 6
G r o u p	5 2	5 5 ~	% 5 5	6 % ~
f D e e n c e	2 6	2 8 ~	3 % 5	% 4 5 5 -
i A t t u o m o v e	2 6	2 7 ~	8 3 %	8 % ~

^{A s s u m p t i o n s}

• Key large-scale projects in Defence to be realized as scheduled, no significant one-offs
• Global automotive industry growing as forecast

Disclaimer

This presentation contains "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of1995 with respect to Rheinmetall's financial condition, results of operations and businesses and certain of Rheinmetall's plans and objectives. These forward-looking statements reflect the current views of Rheinmetall's management with respect to future events. In particular, such forward-looking statements include the financial guidance contained in the outlook for 2016.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "will", "anticipates", "aims", "could", "may", "should", "expects", "believes", "intends", "plans" or "targets". By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. In particular, such factors may have a material adverse effect on the costs and revenue development of Rheinmetall. Further, the economic downturn in Rheinmetall's markets, and changes in interest and currency exchange rates, may also have an impact on Rheinmetall's business development and the availability of financing on favorable conditions. The factors that could affect Rheinmetall's future financial results are discussed more fully in Rheinmetall's most recent annual and quarterly reports which can be found on its website at www.rheinmetall.com.

All written or oral forward-looking statements attributable to Rheinmetall or any group company of Rheinmetall or any persons acting on their behalf contained in or made in connection with this presentation are expressly qualified in their entirety by factors of the kind referred to above. No assurances can be given that the forward-looking statements in this presentation will be realized. Except as otherwise stated herein and as may be required to comply with applicable law and regulations, Rheinmetall does not intend to update these forward-looking statements and does not undertake any obligation to do so.

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Rheinmetall AG or any of its direct or indirect subsidiaries.

160512 Q1 2016

Quarterly development

Salesin EUR million

Operational earnings in EUR million

-17

-4

52

Key figures Automotive by division

Quarterly development

Sales Automotivein EUR million

Operational earnings Automotive in EUR million

Figures 2014 adjusted for retrospective application of IFRS 5 "Discontinued Operations"

Market

Sales structure and market growth

Sales by division in EUR million

* Q1 2016 vs. Q1 2015, source: IHS Automotive (March 2016)

Cash flow statement

l l i E U R i i n m o n	Q 1 2 0 1 5	Q 2 2 0 1 5	Q 3 2 0 1 5	Q 4 2 0 1 5	Q 1 2 0 1 6	∆ Q 1 / 2 0 1 6 2 0 1 5
N i t e n c o m e	4 0	4 3	3 5	4 3	3 8	2 -
/ d A i i i i t t t m o r z a o n e p r e c a o n	2 8	2 8	2 8	3 2	3 3	5 +
h l C i i a n g e n p e n s o n a c c r u a s	0	0	2 -	0	0	0 ±
h f l C a s o w	6 8	7 1	6 1	7 5	7 1	3 +
h k l d i i i C t a n g e s n o r n g c a p a a n w h i t t o e r e m s	6 0 -	4	4 0	2 3	1 7 8 -	1 1 8 -
h d i i N t t e c a s s e n o p e r a n g u i i i t t a c e s v	8	7 5	1 0 1	9 8	1 0 7 -	1 1 5 -
f f h l d d C i i t t t a s o u o w o r a o n s o b l b l d i i i t t t a n g e a n n a n g e a s s e s	3 4 -	3 4 -	4 6 -	7 2 -	3 2 -	2 +
f f h l i F t r e e c a s o r o m o p e r a o n s w	2 6 -	4 1	5 5	2 6	1 3 9 -	1 1 3 -

Figures 2014 adjusted for retrospective application of IFRS 5 "Discontinued Operations"

Key figures Defence by division

Quarterly development: Sales

Sales Defence – old divisional structure in EUR million

Sales Defence – new divisional structure in EUR million

Electronic SolutionsWeapon and Ammunition

Consolidation/OthersVehicle Systems

Quarterly development: Operational earnings

Consolidation/Others

Order backlog by region and division

Order backlog by region in EUR million

Order backlog by divisions in EUR million

Cash flow statement

l l i i i E U R n m o n	Q 1 2 0 1 5	Q 2 2 0 1 5	Q 3 2 0 1 5	Q 4 2 0 1 5	Q 1 2 0 6 1	∆ Q 1 / 2 0 6 2 0 1 1 5
N i t e n c o m e	3 0 -	8 -	3	6 7	2 0 -	1 0 +
/ d A i i i i t t t m o r z a o n e p r e c a o n	2 1	2 1	2 1	2 2	2 2	1 +
h l C i i a n g e n p e n s o n a c c r u a s	0	3	2	3	1	1 +
h f l C a s o w	9 -	1 6	2 6	9 2	3	1 2 +
h k l d C i i i t a n g e s n w o r n g c a p a a n h i t t o e r e m s	2 1 4 -	2 1 1 -	2 5 -	2 2 1	9 0 -	2 5 +
h d i i N t t e c a s u s e n o p e r a n g i i i t t a c v e s	1 5 1 -	9 6 -	1	3 0 4	8 7 -	6 4 +
h f l f d d i i C t t t a s o u o w o r a o n s o b l d b l i i i t t t a n g e a n n a n g e a s s e s	1 7 -	1 5 -	2 6 -	3 8 -	1 7 -	0 ±
h f l f i F t r e e c a s o w r o m o p e r a o n s	1 6 8 -	1 1 1 -	2 5 -	2 6 6	1 0 4 -	6 4 +