Rheinmetall AG — Call Transcript 2018

Mar 15, 2018

Record result and excellent cash flow in 2017

Conference Call Fiscal Year 2017Düsseldorf, 15. March 2018

Disclaimer

This presentation contains "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995 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 2018.

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.

HIGHLIGHTS

FY 2017 Group Highlights

Significantly higher free cash flow and excellent earnings development

• Group sales development on the back of solid demand in both segments rose to €5,896m
• Operating result up by €47m, raising Group operating margin by 50bp to 6.8%
• Operating free cash flow increased by €115m resulting in a 69% cash conversion rate
• EPS amounted to €5.24 driven by profitability improvement and higher net interest result
• €1.70 dividend proposal is more than 17% higher than last year

Strong Group financials underscore strategy & performance going forward!

FY 2017 Group Highlights

Profitability targets achieved despite slightly lower than expected sales growth

		G r o u p	i A t t u o m o v e	f D e e n c e
l S a e s	d d G i e u	d 6 % A r o n u	d f U p p e r e n o r a n g e 6 % % 7 –	d f L o w e r e n o r a n g e % 6 % 5 –
h G t r o w	h d i A c e e v	2 % 5	% 7 7	3 % 1
i O t p e r a n g	i d d G u e	l i h l b S 6 5 % t g y a o v e	d A 8 4 % r o u n	d f U 5 % 5 5 % p p e r e n o –
i M a r g n	h d i A c e v e	6 8 %	8 7 %	5 7 %

Profitability expectations exceeded: Group performance well on track!

FY 2017 Highlights: AutomotiveStrong sales growth with further improved result and margin

• Sales grew by 7.7% (7.9% FX-adjusted) to €2.9bn, clearly outperforming markets
• Mechatronics drove sales and results due to high demand for emission reduction and fuel efficiency products
• Operating result climbed to €249m, up 11.7%
• Operating margin increased by 30bp to 8.7%
• Closure of French pistons plant to further improve Hardparts performance
• More than €500m order backlog for e-mobility

FY 2017 Highlights: Automotive Successful launch of innovative products

FY 2017 Highlights: DefenceStrong results and cash flow on the back of higher sales

• Sales grew 3.1% (2.9% FX-adjusted) to above €3bn
• Operating result up by 18.4% to €174m
• Operating margin increased 70bp to 5.7%
• Free operating cash flow more than doubled to €238m
• Successful partnering in preparation of strategic moves

FY 2017 Highlights: Defence2017 laid the foundation for the next growth phase

FY 2017 Highlights: DefenceBreaking news: Rheinmetall nominated preferred bidder for Land 400 Phase 2

Order scope

• 200 vehicles in different variations

• (incl. >130 Lance turrets)
• Total order volume of around €2bn
• Finalization of contract negotiation

FINANCIALDETAILS

Strengthened balance sheet

	f l i i K e y n a n c a s i € n m
		F Y 2 0 1 6	F Y 2 0 1 7	Δ
	l T t t o a a s s e s	6, 0 1 5	6, 8 6 1	3 6
l b l T t t t o a a s s e s s a e	E i t q u y	1, 7 8 1	1, 9 5 5	1 7 4
b b i i 2 6 0 3 6 % E 1 t t t	i i E t t q r a o u y	% 2 9 0	% 3 1. 6	b 2 6 0 p
q r a o r o s e p o u y y	h N t e c a s	1 9	2 3 0	2 1 1
h d b i i i N € 2 1 1 € 2 3 0 t t t e c a s p o s o n n c r e a s e y m o m	1 b i D t t e r a o	0 3 % -	2 % 4 -	b 3 9 0 p
	² N i t e g e a r n g	1. 1 % -	1 1. 8 % -	b 1, 0 7 0 p
d i i d I t t t t n v e s m e n g r a e r a n g m p r o v e o / h l k i i i i B 1 0 9 2 0 1 7 t t t a p o s e o o o n w v u	³ i L t e e r a g e r a o v	0 0 3 -	0 4 0 -	0 3 7

¹ Net financial debt / (total assets-liquid financial assets)

• ² Net financial debt / shareholder's equity
• ³ Net financial debt / EBITDA

2768230 ^{13 13}37161+71.4%Net incomeD&A Net Working Capital & othersChange in Pension provisions2016 Capex ²⁰¹⁷ Operating Free Cash Flow Key drivers changes y/y in €m

Outstanding cash flow development and improved cash flow-to-sales-ratio

• Net income increased on improved results and lower net interest effects
• D&A included unscheduled D&A of €8m
• Lower capex in Defence and Holding
• €15m higher CTA funding for pensions
• Positive development of NWC(e.g. customer payments)
• Build-up of provisions, driven by restructuring and environmental measures
• Cash flow-to-sales-ratio improved to 4.7%

Group ROCE increased 110bp and further covered cost of capital

in €m	F Y 2 0 1 6	F Y 2 0 1 7	Δ
I A E B T D	8 1 5	6 2 6	4 5
E B I T	3 5 3	3 8 5	3 2
l I t t t n e r e s r e s u	5 4 -	3 9 -	1 5
E B T	2 9 9	3 6 4	4 7
N i t e n c o m e	2 1 5	2 5 2	3 7

in €m	/ / 3 1 1 2 2 0 1 6	/ / 3 1 1 2 2 0 1 7	Δ
i E t q u y	1, 7 8 1	1, 9 5 5	1 7 4
/ ( / ) d b l d N N i i i t t t t + e e e q u y -	1 9 -	2 3 0 -	2 1 1 -
P i i i e n s o n p r o v s o n s	1, 1 8 6	1, 0 8 0	1 0 6 -
l l d * i A t e r a g e c a p a e m p o e v y	2, 8 6 0	2, 8 7 7	1 7
( ) O C i % R E n	2. 3 1	3. 1 4	b 0 1 1 p

d l f f i i € i E B I T 1 5 t t t t r o s e e s p e n e n e g a v e m s p e c a e e c s
l b f d f l i I t t t t n e r e s r e s u e n e e r o m o w e r a v e r a g e h d i i i t t t t t n e r e s r a e a n n e c a s p o s o n
d l d f U i 2 7 % 2 8 % i 2 0 1 6 t t t t n e r n g a r a e e a s e o a e r n y x
d b N i i 1 7 % t e n c o m e n c r e a s e y

• Average capital employed almost stable with mitigating effects from various line items
• ROCE improved by 110bp to 13.4% (Group pre-tax WACC: 10.5% )

*average capital employed is the mean of 2016/2017 year-end figures

Stronger net cash position

Net financial debt / net cash

Debt composition and maturity profile

in €m

*€250 m EIB loan (0.962% coupon) maturing in August 2023

FINANCIALSAUTOMOTIVE

Q4 2017:Automotive with excellent sales growth on high profitability level

Comments on quarterly performance

• Positive sales development of 7.2% supported by all divisions (9.0% FX-adjusted)
• Improved operating result mostly achieved by Mechatronics
• Margin sequentially up, but below PY due to Hardparts results

i € n m	Q 4 2 0 1 6	Q 4 2 0 1 7	Δ	F Y 2 0 1 6	F Y 2 0 1 7	Δ
l S a e s	6 6 4	1 2 7	2 % 7	2, 6 6 5	2, 8 6 1	% 7 7
l i O t t p e r a n g r e s u	6 0	6 3	% 5 0	2 2 3	2 4 9	% 1 1. 7
i i i % O t p e r a n g m a r g n n	9 0	8 8	b 2 0 p -	8 4	8 7	b 3 0 p
E B I T	6 0	6 3	% 5 0	2 2 3	2 2 7	% 1. 8
h l O i F C F t p e r a n g r e e a s o w	1 4 6	7 4	4 9 3 % -	1 0 5	1 0 6	1. 0 %

Q4 2017 result growth on the back of strong Mechatronics performance

Aftermarket Higher sales Reduced ramp-up cost Hardparts Recovery of LBP demand Ramp-up issues for structural parts at our German casting JV Discontinuation of subsidies (EEG) Mechatronics Good demand for high tech/high margin products continued

842948LV businessNon-LV business20172,8611,91320162,6561,8147.7%Source: IHS Automotive, March 20182.1%201795.127.74.523.617.122.2201693.127.14.022.717.821.5Europe NAFTA Asia without China Rest of the World China Global LV production in million unitsWithout China: +2.0%+5.5%+12.7%China: +2.4% Sales Automotive LV / Non-LV in €m

Automotive outperformed global markets again

Without exception: All regions outperformed!

Regional Automotive sales growth FY 2017 in % (IHS March 2018)

Demand for our products in China on the rise

© Rheinmetall AG / Conference Call FY 2017

Sales increased by 4.1% (7.8% FX-adjusted) to €972m, clearly outperforming Chinese market growth of 2.2%

• Strong and profitable growth in JVs accelerated
• 100% subsidiaries with very good sales and EBIT contribution, margin grew to 8.9% (PY: 8.2%)

Including 100% figures of 50/50 JV, consolidated at equity

FINANCIALSDEFENCE

Solid fourth quarter with high cash flow generation

Comments on quarterly performance

• Sales slightly lower, (-2.2%; -0.9% FX-adjusted)
• Margin expansion driven by Weapon & Ammunition
• Q4 free cash flow benefited from high customer payments

i € n m	Q 4 2 0 1 6	Q 4 2 0 1 7	Δ	F Y 2 0 1 6	F Y 2 0 1 7	Δ
d k O i t r e r n a e	7 2 5	6 7 1	7. 4 % -	3, 0 5 0	2, 9 6 3	2. 9 % -
l S a e s	1, 0 3 4	1, 0 1 1	2. 2 % -	2, 9 4 6	3, 0 3 6	3. 1 %
l O i t t p e r a n r e s g u	1 1 5	1 1 4	0. 9 % -	1 4 7	1 7 4	1 8. 4 %
O i i i % t p e r a n g m a r g n n	1 1. 1	1 1. 3	b 2 0 p	5. 0	5. 7	b 7 0 p
E B I T	1 1 5	1 1 5	0. 0 %	1 4 7	1 7 2	1 7. 0 %
h l O i F C F t p e r a n g r e e a s o w	3 1 9	3 9 5	2 3. 8 %	1 0 3	2 3 8	1 3 1. 1 %
/ l i i % O F C F S t p e r a n g a e s n	3 0. 9	3 9. 1	b 8 0 0 p	3. 5	7. 8	b 3 0 0 p

Q4 margin improvement in a weaker sales quarter

26%20162,94627%201729%6%22%3,0363.1%29%17%21%6%17% Order backlog by region in €mRest of the World North America Asia Europe (w/o Germany) Germany 4%20166,65621%201741%3%17%6,416-3.6%39%16%39%2%17% Sales by region in %4%20163,05022%201746%3% 4% 2,963 -2.9%52%19%20%4%26% Order intake by region in €m

German military spending hike becomes visible

Backlog profile underscores growth expectations for 2018

Order backlog by division

OUTLOOK2018

Mid-term outlookDrivers for structural earnings improvement

Automotive targets

• Increase content per car
• Gain more powertrain neutrality
• Further develop product portfolio by entering new markets, e.g. e-mobility
• Increase market share with Chinese OEMs
• Grow share of electrified products to 50% by 2020

Mid-term outlookDrivers for profitable growth intact

• Defence targets
• Markets at the dawn of a long-term growth trend
• Increasing margins due to the lesser impact of legacy contracts
• Higher margin contained in the order book
• Leveraging our "military off-the-shelf" portfolio in vehicles
• Internationalization strategy with focus on EasternEurope
• Development of new technologies

Short-term outlook High sales growth and earnings improvement targeted

l S a e s		O i t p e r a n g m a r g	i n
	2 0 1 7 / Gr h y in % t ow y	2 0 8 1 e / Gr h y in % t ow y	2 0 1 7 in %	2 0 8 1 e in %
G r o u p	2 5.	8 9 -	6. 8	0 7. ~
i A t t o m o e u v	7. 7 ( ) I H S 2. 1 %	3 4 - ( ) I H S 1. 9 %	8. 7	8. 5 ~
f D e e n c e	3. 1	1 2 1 4 -	5. 7	6. 0 6. 5 -

At constant exchange ratesIHS LV growth assumption as per March 2018

Next events and IR contacts

Events 2018

ds ho Ro F Y 2 0 1 7 a w	k fu Fr t an r	h 2 0 M ar c
fe k o f ica i l h Co Ba Am M Ly n re nc e n er er r nc	do Lo n n	h 2 2 M ar c
ds ho Ro F Y 2 0 1 7 a w	/ b l Du in	/ h 2 6 2 7 M ar c

Q1 2018 Earnings call 4 May Annual General Meeting Berlin 8 May

Edinburgh

IR Contacts

d ic h Fr Be Re an z- rn
f d He I R a o
l: Te 4 9- 2 1 1 4 7 3- 4 7 1 8 +
i l: fra -b d. ic h he in l l.c Em @ ta a nz er n re r m e om
ir k in ke ls D W

Senior Investor Relations ManagerTel: +49-211 473-4749Email: dirk.winkels@rheinmetall.com

Rosalinde Schulte

Investor Relations AssistantTel: +49-211 473-4718Email: rosalinde.schulte@rheinmetall.com

Quick link to documents

APPENDIX

Select key data: outlook 2018

h i l l R G t e n m e a r o p u		f s les In % o a	i A t t o m o e u v	f D e e n c e
l d i H t o n g c o s	( ) ~€ 3 0 P Y € 2 3 m m :	C a p e x	~5 5 6. 0 % -	~3 5 4 5 % -
T t a x r a e	( ) % % 3 0 P Y 2 7 < :	& D A	% ~5 5	% ~3 3. 5 -
I t t n e r e s e x p e n s e	l l O i n p r e v o u s y e a r e v e	& R D	% ~5 5. 5 -	~2 2. % 5 -
f d C i T A u n n g	€ 4 0 i Q 1 2 0 1 8 m n ( l d h d ) t a r e a y c a s e o u

Group 2013 – 2017: Key figures

Appendix

In €m		2 0 1 3	2 0 14	2 0 15	2 0 1 6	2 0 17
lan he Ba et ce s	l a To ta ts sse	4, 8 6 6	5, 27 1	5, 7 3 0	6, 0 15	6. 1 8 6
	's e S ha ho l de ity re r q u	1, 3 3 9	1, 1 9 7	1, 5 6 2	1, 7 8 1	1, 9 5 5
	( ) ity io in % Eq t u ra	27 .5	2 2.7	27 3	2 9. 0	3 1. 6
	ion l ia b i l it ies Pe ns	8 9 1	2 1, 1 1	2 8 1, 1	8 6 1, 1	1, 0 8 0
	f l de bt Ne ina ia t nc	14 7	3 3 0	8 1	9 -1	-2 3 0
	( ) Ne ing in % t g ea r	1 1. 0	27 6	5. 2	-1. 1	-1 1. 8
Inc tat t om e s em en	les Sa	4, 4 17	4, 6 8 8	5, 1 8 3	5, 6 0 2	5, 8 9 6
	ing lt Op t era re su	2 1 1	6 0 1	2 8 7	3 3 5	4 0 0
	( ) Op ing in in % t era m arg	4. 8	3. 4	5. 5	6. 3	6. 8
	EB ITD A	3 15	2 9 9	4 9 0	5 8 1	6 2 6
	EB IT	1 2 1	1 0 2	2 8 7	3 5 3	3 8 5
	in ( in ) EB IT % ma rg	2.7	2. 2	5. 5	6. 3	6. 5
	EB T	45	2 2	2 2 1	2 9 9	3 4 6
	fte Ne inc ino it ies t om e a r m r	2 9	1 8	15 1	2 0 0	2 24
	ing ha ( in ) Ea EU R rn s p er s re	0. 75	0. 47	3. 8 8	4. 6 9	5. 24
	iv i de d p ha ( in ); l D EU R 2 0 17 n er s re : p rop os a	0. 0 4	0. 3 0	0 1. 1	1. 45	1. 7 0
	( ) R O C E in %	4.7	3. 9	1 0. 1	1 2. 3	1 3. 4
h f low Ca st ate nt s me	h f low fro ion Fre t e c as m op era s	2 0	-1 8 2	2 9	1 6 1	27 6
dc He nt a ou	( ) loy d ing ity Em De 3 1 to p ee s c ac co r ca p ac	2 0, 2 6 4	2 0, 1 6 6	2 0, 6 6 7	2 0, 9 9 3	2 1, 6 1 0

2013 figures adjusted according to IFRS 5 (Discontinued Operations) with regard to the formation of the ATAG JV and according to IFRS 11 (Joint Arrangements)

Segments 2013 – ²⁰¹⁷Key figures

Appendix

A U T O M O T I V E
2 0 1 3	2 0 14	2 0 15	2 0 1 6	2 0 17
2, 27 0	2, 4 6 6	2, 6 2 1	2, 6 7 0	2, 9 2 2
3 9 2	4 1 6	4 45	45 9	5 2 0
2, 2 6 2	2, 4 4 8	2, 5 9 2	2, 6 5 6	2, 8 6 1
15 8	1 8 4	2 1 6	2 2 3	24 9
7. 0	7.5	8. 3	8. 4	8. 7
2 25	2 9 5	3 3 2	3 5 6	3 6 7
1 24	1 8 4	2 1 6	2 2 3	2 27
5. 5	7.5	8. 3	8. 4	7. 9
14 2	15 8	1 6 7	17 4	17 6
0, 9 27 1	0, 8 3 0 1	0, 9 3 1 4	0, 8 2 0 1	1 1, 1 6 6
1, 17 1	1, 3 2 2	1, 45 0	1, 5 27	1, 6 2 1
6 6	9 6	1 1 9	14 2	17 6
6 5.	3 7.	8. 1	9. 3	1 0. 9
8 8 9	9 3 4	9 2 5	9 2 1	9 6 8
27	7 2	7 3	6 2	3 8
3. 0	7.7	7.7	6. 7	3. 9
2 6 8	2 6 9	2 8 5	3 0 5	3 5 8
27	2 6	27	27	3 3
1 0. 1	9. 7	9. 5	8. 9	9. 2

l l in EU R m i ion
Or de int ke r a
de ba k log ( Or De r c	) 3 1 c.
les Sa
lt Op ing t era re su
Op ing in t era m arg	( ) in %
EB ITD A
EB IT
( EB IT in in % ma rg	)
Ca p ex
loy ( Em De 3 1 p ee s c	) d ing to ac co r ca p ac	ity
ha Me ics tro c n	les Sa	W & ea p on
	EB IT	* it ion Am mu n
	in EB IT ma rg
dp Ha art r s	les Sa	lec ic E tro n
	EB IT	lut So ion s
	in EB IT ma rg
fte ke A t rm ar	les Sa	h ic le Ve
	EB IT	* Sy ste ms
	EB IT in ma rg

		D E F E N C E
2 0 1 3	2 0 14	2 0 15	2 0 1 6	2 0 17
3, 3 3 9	2, 8 1 2	2, 6 9 3	3, 0 5 0	2, 9 6 3
6, 0 5 0	6, 5 1 6	6, 4 2 2	6, 6 5 6	6, 6 4 1
2, 15 5	2, 24 0	2, 5 9 1	2, 9 4 6	3, 0 3 6
6 0	-9	9 0	14 7	17 4
2. 8	-0. 4	3. 5	5. 0	5. 7
9 6	17	17 5	2 3 9	2 6 8
4	-6 7	9 0	14 7	17 2
0. 2	-3. 0	3. 5	0 5.	5. 7
6 2	7 6	9 6	9 5	8 9
9, 1 9 3	9, 1 8 4	9, 5 8 1	1 0, 0 0 2	1 0, 25 1
1, 0 27	9 77	8 8 1	1, 1 1 2	1, 17 5
3 1	-4	7 4	1 0 8	1 17
3. 0	-0. 4	8. 4	9. 7	0. 0 1
7 1 0	7 0 5	75 9	7 45	6 9 1
1 1	-5 3	2 6	25	2 0
1.5	-7. 5	3. 4	3. 4	2. 9
5 3 9	6 6 7	1, 1 9 5	1, 3 9 2	8 0 1, 4
-3 5	-9	3	2 9	5 1
-6. 5	-1. 4	0. 3	2. 1	3. 5

2013 figures adjusted according to IFRS 5 (Discontinued Operations) with regard to the formation of the ATAG JV and according to IFRS 11 (Joint Arrangements)

© Rheinmetall AG / Conference Call FY 2017

*Figures not readjusted tocurrent reporting structure

Free Cash Flow summary Group

i € n m	Q 4	F Y	Q 1	Q 2	Q 3	Q 4	F Y	Q Δ 4	Δ F Y
	2 0 6 1	2 0 6 1	2 0 1 7	2 0 1 7	2 0 1 7	2 0 1 7	2 0 1 7	/ '1 '1 6 7	/ '1 '1 6 7
G N I t r o u p e n c o m e	1 1 6	2 1 5	2 8	5 1	4 3	1 3 0	2 5 2	1 4	3 7
/ d A i i i i t t t m o r a o n e p r e c a o n z	6 7	2 2 8	5 7	5 5	5 9	7 0	2 4 1	3	1 3
h l C i i a n g e n p e n s o n a c c r u a s	-	1 4 -	3 4 -	3 -	1	8 -	4 4 -	8 -	3 0 -
h l C F a s o w	8 3 1	2 9 4	5 1	0 3 1	0 3 1	9 2 1	9 4 4	9	2 0
h k l d h i i i i C t t t a n g e s n w o r n g c a p a a n o e r e m s	3 8 9	1 5	2 0 7 -	3 4 -	3 6 -	3 7 4	9 7	1 5 -	8 2
h d i i i i i N t t t t e c a s u s e n o p e r a n g a c v e s	2 5 7	4 4 4	6 1 5 -	6 9	6 7	6 6 5	6 5 4	6 -	0 2 1
h f l f d d b l C i i i t t t t a s o o o r a o n s o a n g e u w		2			2		2
d b l i i t t a n n a n g e a s s e s	1 0 9 -	8 3 -	4 3 -	5 0 -	6 -	1 1 5 -	7 0 -	6 -	1 3
h l f i F C F O t r e e a s o w r o m p e r a o n s	4 6 3	1 6 1	1 9 9 -	1 9	5	4 5 1	2 7 6	1 2 -	1 1 5

169

Quarterly development Group

Appendix

171

Quarterly development Automotive

Operational results by division in EUR million

Free Cash flow summary Automotive

i € n m	Q 4 2 0 1 6	F Y 2 0 1 6	Q 1 2 0 1 7	Q 2 2 0 1 7	3 2 Q 0 1 7	Q 4 2 0 1 7	F Y 2 0 1 7	Δ Q 4 '1 / '1 6 7	Δ F Y '1 / '1 6 7
i N t e n c o m e	9 4	6 1 5	6 4	0 5	2 5	4 4	6 1 5	5 -	-
/ 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 0	1 3 3	3 2	3 2	3 7	3 9	1 4 0	1 -	7
h l i i C a n g e n p e n s o n a c c r u a s	1 -	2 -	-	-	-	-	-	1	2
h l C F a s o w	8 8	2 9 6	7 8	8 2	6 2	8 3	3 0 5	5 -	9
h k l d h C i i i i t t t a n g e s n o r n g c a p a a n o e r e m s w	1 2 9	1 7 -	1 7 2 -	2 0	6 1	6 8	2 3 -	6 1 -	6 -
h d i i i i i N t t t t e c a s u s e n o p e r a n g a c v e s	2 1 7	2 9 7	9 4 -	1 0 2	1 2 3	1 1 5	2 8 2	6 6 -	3
h f l f d d b l C i i i t t t t a s o u o w o r a o n s o a n g e d b l i i t t a n n a n g e a s s e s	7 1 -	1 7 4 -	2 4 -	3 3 -	4 2 -	7 7 -	1 7 6 -	6 -	2 -
f f h l i F t r e e c a s o w r o m o p e r a o n s	1 4 6	1 0 5	1 1 8 -	6 9	8 1	7 4	1 0 6	7 2 -	1

Appendix

Sales by division in EUR million

Quarterly development Defence

Operational earnings by division

in EUR million

Free Cash flow summary Defence

i € n m	4 2 Q 0 1 6	F Y 2 0 1 6	Q 1 2 0 1 7	Q 2 2 0 1 7	3 2 Q 0 1 7	4 2 Q 0 1 7	F Y 2 0 1 7	4 '1 Δ Q / '1 6 7	Δ F Y '1 / '1 6 7
i N t e n c o m e	8 7	7 4	1 6 -	8	3 2	6 7	1 0 0	2 -	2 6
/ d i i i i A t t t m o r z a o n e p r e c a o n	2 6	9 2	2 4	2 2	2 1	2 9	9 6	3	4
h l C i i a n g e n p e n s o n a c c r a s u	1	5	3 -	6 -	2	2 -	9 -	3 -	1 4 -
h l C F a s o w	1 0 5	1 7 1	5	2 4	5 5	1 0 3	1 8 7	2 -	1 6
h k l d h i i i i C t t t a n g e s n w o r n g c a p a a n o e r e m s	2 4 8	2 7	6 1 -	3 8 -	8 8 -	3 2 7	1 4 0	7 9	1 1 3
h d i i i i i N t t t t e c a s s e n o p e r a n g a c e s u v	3 5 3	1 9 8	5 6 -	1 4 -	3 3 -	4 3 0	3 2 7	7 7	1 2 9
h f l f d d b l C i i i t t t t a s o o o r a o n s o a n g e u w d b l i i t t a n n a n g e a s s e s	3 4 -	9 5 -	1 6 -	1 9 -	1 9 -	3 5 -	8 9 -	1 -	6
h f l f i F t r e e a s o r o m o p e r a o n s c w	3 1 9	1 0 3	7 2 -	3 3 -	5 2 -	3 9 5	2 3 8	7 6	1 3 5

Income statement Group

i l lio In EU R m n I € n m	I S t t t n c o m e a e m e n
	'1 Q 4 6	'1 Q 4 7	Δ	'1 F Y 6	'1 F Y 7	Δ		'1 Q 4 6	'1 Q 4 7	Δ	'1 F Y 6	'1 F Y 7	Δ
l o fo To ing ta t p er a p er rm an ce	1, 6 0 9	1, 6 9 5	8 6	5, 7 1 1	6, 0 1 1	3 0 0	( ) Ne ing inc E B I T t o t p er a om e	1 7 1	1 7 9	8	3 5 3	3 8 5	3 2
							Ne in inc t te t res om e	2 - 1	4 -	8	4 - 5	9 - 3	1 5
he O ing inc t t r o p er a om e	7 5	7 0	-5	1 6 0	1 5 2	-8	ing be fo ( ) Ea E B T ta rn s re x	1 5 9	1 7 5	1 6	2 9 9	3 4 6	4 7
f m ls Co ia t o te s a r	8 4 6	9 2 9	8 3	3, 1 2 0	3, 2 6 2	1 4 2	Inc ta om e x	3 - 4	4 5 -	-2	4 - 8	4 - 9	-1 0
l e Pe rso nn e xp en se s	3 7 5	3 7 7	2	1, 4 6 5	1, 5 4 8	8 3	inc Ne t om e	1 1 6	1 3 0	1 4	2 1 5	2 5 2	3 7
de Am iza ion ia ion t t t or p rec , d im irm t an p a en	6 7	7 0	3	2 2 8	2 4 1	1 3	f w h h: ic o
O he ing t t r o p er a ex p en se s	2 3 0	2 2 1	-9	7 1 5	3 7 4	9 1	ino i in M ty te t r res	1 1	9	-2	1 5	2 8	3 1
fro Inc om e m d a ies ie i t e ty co mp an ca rr q u	1 0	1 6	6	2 8	2 8	0	he l l s ha ho l de R inm ta e re rs	1 0 5	1 2 1	1 6	2 0 0	2 2 4	2 4
he f ina ia l re l O t ts r nc su	5 -	5 -	0	8 - 1	1 - 2	0	ing ha Ea rn s p er s re	2. 4 6	2. 8 4	0. 3 8	4. 6 9	5. 2 4	1. 0 0
ing inc ( ) Ne E B I T t o t p er a om e	1 7 1	1 7 9	8	3 5 3	3 8 5	3 2	E B I T D A	2 3 8	2 4 9	1 1	5 8 1	6 2 6	4 5

Cash flow statement Group

I	€
n	m

Appendix

Cash Flow Statement

	FY 20 16	FY 20 17	Δ		FY 20 16	FY 20 17
Ne t I nc om e	21 5	25 2	37	de ds d o by he l l A Div i i R inm G ut eta n pa	-47	-62
de d Am iza ion iat ion im irm ort t t pre c an pa en ,	22 8	24 1	13	he fit d bu Ot ist ri ion t r p ro s	-8	-10
ion f C Do TA tat o	-15	-30	-15	Sa le f t ha o rea su ry s res	4	4
ha C in ion is ion ng es pe ns pr ov s	1	-14	-15	/ca Ca ita l pa ita l co ibu tio by llin int ent to ntr tro sts p ym p ns no n-c on g ere	0	4
fro d l o f n Inc isp nt set om e m os a on -cu rre as s	2	-6	15	ha li da d s bs d Inc in in i iar ies te rea se s res co ns o u	0	0
du ion f p is ion fo ia l re ire by CT fu d ing Re A ct art t nt o rov r p me n	-15	0	15
ha he C in is ion ot ng es r p rov s	63	12 0	57	f fin l de bts Bo wi ia rro ng o an c	85	41 5
ha C in inv rie to ng es en s	-33	-97	-64	f fin l de bts Re ia t o pa ym en an c	-12 3	-55 1
(w /o C ha in iva b les lia b i lit ies ng es rec e ,				h f low fro f Ca ina ing iv it ies t s s m nc ac	-8 9	-20 0
fin l de bts ) a d p d & de fer d ia i an c n rep a re	-5	10 8	11 3
ite ms
inc fro inv rie d a ity Pro ta est t c t e ra om e m me ns ar qu	-28	-28	0	C ha in fin ia l re ng es an c so urc es	-81	15 7
de ds d fro d a Div i ive inv rri ity tm ts t e n re ce m es en ca e qu	14	8	-6	ha h a d c h e len du ha C in iva ts e t ate ng es ca s n as qu o e xc ng e r s	6	-16
he h e d Ot inc r n on -ca s xp en se s a n om e	17	-8	-25	l c ha fin l re To in ia ta ng e an c so urc es	-75	14 1
Ca h f low fro ing iv it ies t t s s m op era ac	44 4	6 54	10 2	Op ing h a d c h e iva len Ja 1 ts en ca s n as qu nu ary	6 91	61 6
in Inv est nts set me as s	-28 3	-27 0	13	los ing h a d c h e iva len C ts ca s n as qu	61 6	75 7
h r fro he d l o f a Ca ip isp ts t ts s ec e m os a sse	1	3	2
fo he ha f liq fin l a Pa i d ia ts r t ts ym en pu rc se o u an c sse	-25 7	-29 2	-35
h r ip fro he d isp l o f liq i d fin ia l a Ca ts t ts s ec e m os a u an c sse	11 7	36 2	24 5
li da d c d o he fin l a Inv in nie ia est nts te t ts me co ns o om pa s a n r an c sse	-14	-15	-1
fro f fin Ca h r ip d isp l o ia l a ts ts s ec e m os a an c sse	0	23	23

				FY 20 16	FY 20 17
			de ds d o by he l l A Div i i R inm G ut eta n pa	-47	-62
		13	he fit d ist ri bu ion Ot t r p ro s	-8	-10
	-14	-15	/ca l pa l co ibu by llin Ca ita ita tio int ent to ntr tro sts p ym p ns no n-c on g ere	0	4
	-6	15	in ha in li da d s bs i d iar ies Inc te rea se s res co ns o u	0	0
	0	15
	12 0	57	f fin l bts Bo wi ia de rro ng o an c	85	41 5
	-97	-64	f fin ia l de bts Re t o pa ym en an c	-12 3	-55 1
			h f low fro f ina ing iv it ies Ca t s s m nc ac	-8 9	-20 0
-5	10 8	11 3
	-28	0	ha fin l re C in ia ng es an c so urc es	-81	15 7
	8	-6	ha h a h e len ha C in d c iva du ts e t ate ng es ca s n as qu o e xc ng e r s	6	-16
			l c ha in fin ia l re To ta ng e an c so urc es	-75	14 1
	54 6	10 2	ing h a d c h e iva len Op Ja 1 ts en ca s n as qu nu ary	6 91	61 6
	-27 0	13	los h a d c h e len C ing iva ts ca s n as qu	61 6	75 7

Balance Sheet Group

I € n m				l h S B t a a n c e e e
	'1 3 1. 1 2. 6	'1 3 1. 1 2. 7	Δ		'1 3 1. 1 2. 6	'1 3 1. 1 2. 7	Δ
No t a ts n-c ur ren sse	2, 7 6 2	2, 7 1 2	-5 0	ity Eq u	1, 7 8 1	1, 9 5 5	1 7 4
b le Int i ts an g as se	8 1 9	7 7 9	-4 0	ha l S ita re ca p	1 1 2	1 1 2	0
lan Pro d e ip ert t a nt p y, p n q u me	1, 3 7 8	1, 3 8 7	9	l p l A d d it ion i d- in ita a a ca p	5 3 2	5 4 0	8
Inv tm t p ert es en ro p y	3 5	6 4	-7	ine d e ing Re ta ar n s	1, 0 7 4	1, 2 0 9	1 3 5
ie d a ity Inv tm ts t e es en ca rr q u	2 4 0	2 4 2	2	ha Tr ea su ry s res	-3 2	-2 5	7
he Ot nt ts r n on -cu rre as se	3 6	7 3	3 7	he l l ha ho l de ' e R inm A G ity eta s re rs q u	1 6 8 6 ,	1, 8 3 6	1 5 0
fe d t De ts rre ax as se	2 3 6	1 8 5	-5 1	M ino ity int sts r ere	9 5	1 1 9	2 4
Cu nt ts rre as se	3, 3 8 8	3, 4 4 7	8 6	l ia b i l it ies No t n-c ur ren	1, 6 2 9	1, 9 0 5	2 6 7
( ) ies Inv to t en r ne	0 9 8 1,	2 1, 1 7	7 4	is ion fo ion d s im i lar b l ig ino Pro Pe at v r ns s a n o	8 6 1, 1 s	0 8 0 1,	0 6 -1
de iva b les Tr a re ce	1, 3 0 6	1, 2 1 7	-8 9	he is ion Ot r p rov s	1 3 5	1 8 5	5 0
d f l a L iq i ina ia ts u nc sse	1 9 0	1 1 9		l de bt F ina ia nc s	2 2 0	5 7 2	3 5 2
he f l a Ot ina ia ts r nc sse	4 3	7 3	3 0	he l b l Ot ia i it ies r	5 6	5 4	-2
he b les d a Ot iva ts r r ec e an sse	1 2 5	1 1 7	-8	fe d t l b l De ia i it ies rre ax	3 2	1 4	-1 8
Inc iva b les e t om ax re ce	1 0	1 1	1
Ca h a d c h e iva len ts s n as q u	6 6 1	7 5 7	1 4 1	Cu l ia b i l it ies nt rre	2, 0 7 4	2, 3 2 6	-4 1 4
fo d l As isp ts se r os a	-	8	8	he Ot is ion r p rov s	5 1 6	5 9 5	7 9
				l de bt F ina ia nc s	5 6 7	7 4	-4 9 3
				de l b l Tr ia i it ies a	7 6 6	7 6 0	-6
				he l b l Ot ia i it ies r	8 3 8	8 2 3	-1 5
				Inc l ia b i l ity e t om ax	5 3	7 4	2 1
l a To ta ts sse	6, 1 5 0	6, 1 8 6	3 6	l l ia b i l ies To ta	6, 1 5 0	6, 1 8 6	3 6

Moderate headcount increase to accompany growth

Innovations remain an important pillar of both businesses

Glossary

bn	b l l i ion s	R O C E	l e loy d Re i tu ta rn on ca p mp e
bp	ba is in ts s p o	W Ro	f he W l d Re t o t s or
G C A R	de d a h r t te co mp ou n ve rag e g row a	S T L V	ica l a ir de fe Ta t te c nc e sy s m
C T A	l Co tra tu tru t a t n c a s g ree me n	W A C C	ig h d a f c i l W te t o ta e ve rag e c os ap
D & A	De ia ion & Am iza ion t t t p rec or	W O F E	ho l ly d fo W ig ise te ow ne re n e n rp r
E	d Ex te p ec
E B I T	be fo d Ea ing In Ta te t a rn s re res n x
I A E B T D	be fo ing In ia ion d Am iza ion Ea Ta De te t, t t t rn s re res x , p rec an or
E B T	ing be fo Ea Ta rn s re x
E I B	k Eu Inv Ba tm t ro p ea n es en n
E P S	ha Ea ing rn s p er s re
E V	lec h le E ic Ve ic tr
F X	ha Fo ig te re n e xc ng e r a
I A A	le b l l lun In ion Au i Au te t to te rn a a mo ss g
I C E	l c bu In ion ine te t rn a om s en g
I F R S	l l da ds In ion F ina ia Re ing S te t t ta rn a a nc p or n r
J V	Jo in Ve t tu n re
L B P	bo La is to rg e re p n
L V	h h le L ig ic t v e
m	i l l ion m s
N N B S	ho ir de fe S t r r an g e a nc e
N W C	k l Ne ing i t w ta or ca p
Op ing F C F t era	fre h f low Op ing t era e c as
Op in . m arg	Op ing in t era m arg
& L P	f i & Lo Ac Pro t t ss co un

© Rheinmetall AG / Conference Call FY 2017

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