CONFERENCE CALL Q2 2023 Transformation for growth

Armin Papperger, CEO Dagmar Steinert, CFO August 10, 2023

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.

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.

Rheinmetall AG and its affiliates are neither associated with nor provide any support to American Depository Receipts programs (ADR) or comparable offerings or investment schemes related to shares in Rheinmetall AG in the United States of America or any other jurisdiction. Therefore, neither Rheinmetall AG nor any of its affiliates has and or will accept any responsibility or liability whatsoever in relation to such ADR programs or comparable investment schemes.

Please note that all figures in this presentation have been rounded on a standalone basis. This can result in minor differences when adding figures together or calculating % shares.

Q2 2023 Group highlights Momentum compounding

Sales rose 6% to €1,498m
Operating result improved to €118m
Margin softened to 7.9%
OFCF lowered to €-219m

Solid Q2 financials EXPAL deal closed RHM nomination tripled

RHM nomination grows to €4,092m mostly driven by Ukrainian and German orders
RHM backlog jumps above €30bn
EXPAL closed July 31st
€1.2bn pre-closing adjustments
Further growth of the core business

Q2 2023 Market update: Germany Time becomes number one priority in German defence procurement

Boris Pistorius Minister of Defence

Benedikt Zimmer State Secretary of the Federal MoD

"The top priority for all of us in the future is the time factor. (…) The goal is first and foremost to realize the product that can be used by the troops as quickly a possible."

"By 2031, we must and want to invest well over €20bn in munitions."

"The factor time has now a top priority. The aim is to accelerate procurement."

Annette Lehnigk-Emden Director-general BAAINBw

"The time factor has the highest priority and, with immediate effect, is the determining factor in all current and new Bundeswehr armament projects (…)."

Q2 2023 Market update: Germany

Rheinmetall set to benefit from accelerated German procurement

*Note: Defence budget for '23, forecast as of '24 based on draft budget '24 and federal financial planning until '27. Information on the special fund not available. Source: Federal Ministry of Finance, Sipri

July

>€8bn

Q2 2023 Market update: Germany Massive increase of order intake over the last couple of weeks

50 Puma 2 nd lot €501m - delivery 2025-2027
57 heavy tractor units >€50m delivery 2023-2024
367 load-handling systems >€285m delivery fulfilled Q3 2023
3,058 Caracal (GER & NL) ~€1.9bn series delivery starts 2025
120 mm tank ammunition ~€4bn with 1st call-off ~€309m
155mm artillery ammunition ~€1.3bn with 1st call-off ~€127m
30mm Puma ammunition ~€67m

Q2 2023 Conference call

Taking responsibility in a changing world Rheinmetall supports Ukraine in all areas

Taking responsibility in a changing world Ukraine picks Rheinmetall to strengthen strategic capabilities

Strategic cooperation with Ukraine signed

Closing expected

Maintenance of military vehicles JV with Ukroboronprom

Ammunition med & large cal

Air defence stationary & mobile

2023 Potential timeline

Q2 2023 Market update: USA XM30 finalist – American Rheinmetall achieves a major breakthrough

OMFV renamed to XM30 combat vehicle program
American Rheinmetall down-selected along with GDLS, with first year funding of ~\$100m
Next steps:
Phase 3: detailed design phase
Phase 4: build and test of 7 prototype vehicles (option for 4 more)
Winner to be announced end of 2027
Start of production expected in 2029

Q2 2023 Market update: international markets International pipeline filled with major project wins

Australia		Norway	Austria
 Contract with Australian Navy for MASS ship protection systems  Used for Hobart-class destroyers and ANZAC-class frigates  €125m (option up to ~€610m to equip entire fleet)	 Largest single call-off from existing contract with Norway  > €150m for around 300 trucks TG3 MIL  Delivery starts end of 2026	 Supply of key components for Leopard 2 A7  Worth €129m for 54 tank guns, fire control units and sensor units + option for 18 additional vehicles  Delivery starts in 2024	 Framework contract for logistic vehicles of up to 1,375 HX and TG vehicles  Worth up to €525m  Delivery starts in 2023

MASS ship protection TG3 MIL Leopard 2A7 HX family

Q2 2023 Market update: international markets Update on our European customer potential for tank ammunition

Q2 2023 Operational update ¡Bienvenida Rheinmetall EXPAL Munitions!

Acquisition value of €1.2bn before purchase price adjustment
Development and manufacturing of artillery ammunition, mortar grenades, medium caliber ammunition and rocket propulsion systems
Significant increase of production capacities
Expected sales 2023 after closing of €150-190m

Q2 2023 Operational update Transformation in the civil market progressing

Emission reduction Alternative powertrain Innovations

Strategic truck contract for valves with emission reduction capabilities
Light weight engine block solution for hybrid vehicles

New customer for H²

recirculation blower
Launching customer for HV cooling pump
Cathode flaps now with 5 customers and triple digit million backlog
Pilot project for curb stone charger successfully started in Cologne
Important step within the mobility revolution

Financials

Q2 2023: Key financial data Solid improvement yields best Q2 ever

1) Continuing operations only August 10, 2023 15

Q2 2023: Key financial data Inventory build-up in anticipation of rising customer demand

Q2 2023: Balance Sheet EXPAL financing completed

Comments

Convertible bonds issued in Q1 with a nominal value of €1.0bn, due to IFRS accounting split into a debt and an equity component
Strong cash position of €1,347m build-up for purchase price payment (Expal); additionally, securities held for trade with a value of €134m per end of H1
Undrawn cash credit lines of €0.9bn per end of H1
Investment Grade Rating Baa2 stable outlook (Moody's)

Q2 2023: Divisions Acceleration of the security business held back by civil performance

in €m		Sales*			Operating Result*		Margin*			OFCF*
	Q2 2022	Q2 2023	delta	Q2 2022	Q2 2023	delta	Q2 2022	Q2 2023	Q2 2022	Q2 2023	delta

Vehicle Systems	451	550	22.0%	46	57	23.2%	10.2%	10.3%	(16)	(253)	-237

Weapon and Ammunition	307	360	17.3%	39	65	67.8%	12.7%	18.2%	(51)	49	100
Electronic Solutions	243	249	2.6%	21	16	-22.6%	8.7%	6.6%	(30)	(17)	13

Sensors and Actuators	343	344	0.2%	24	9	-62.6%	7.1%	2.7%	(21)	(37)	-15

Materials and Trade	184	154	-16.0%	11	5	-52.2%	5.9%	3.4%	3	0	-3

Non-divisional / Consolidation	(120)	(160)	-32.9%	(28)	(35)	-24.2%			(64)	38	102

Rheinmetall Group	1,408	1,498	6.4%	114	118	4.0%	8.1%	7.9%	(179)	(219)	-41

Q2 2023: Nomination and Backlog Rheinmetall Nomination tripled versus previous year

1) Rheinmetall Nomination = Order Intake (Div. W+A, ES, VS) + Frame Nomination (Div. W+A, ES, VS: New Frame agreements – call offs from existing frame backlog) + Booked Business (Div. S+A, M+T)

2) Rheinmetall Backlog = Order backlog (signed and fixed contracts) + Frame Backlog (signed frameworks incl. truck and ammunition framework agreements for several years) + Nominated backlog (inventory figure aligned to the annual sales planning S+A/M+T based on the nomination letters of the booked business)

OUTLOOK

Outlook F-35 opens a new dimension for Rheinmetall

Ground-breaking of greenfield production plant in Weeze on August 1st
F-35 center fuselage production to commence in 2025
New plant due to produce at least 400 F-35A fuselage sections
Matches increased demand by countries
Ramp-up of additional 400 service headcounts

Outlook We invest in our future!

Urgent demand requires rapid investment in our capacities

Substantial increase in inventories drives working capital growth

Preparation for growth affects free cash flow generation

Outlook Pronounced backend loading as expected

Outlook Growth becomes tangible in the mid-term

Strong book to bill ratio (LTM) of 2.6x
German contract award makes noticeable progress
Expal integration offers significant capacity expansion and capability enhancement for large caliber ammunition
Successful diversification in new markets like F-35
Rheinmetall fully committed to timely capacity increase and order execution

Outlook FY 2023 guidance confirmed

	Guidance 2023e	EXPAL	2022
Sales	Between €7.4 to 7.6 bn	€150-190m	€ 6.4 bn
Operating Margin	Around 12%	Around 25%	11.8%
Operating free cash flow	4-6% OFCF to sales		€-152 m

Sales guidance includes FX effects and excludes contributions from acquisitions. EXPAL pro forma will be fully consolidated for the period August – December 2023. Q2 2023 Conference call

Q&A

Thank you for your attention!

Next events and IR contacts

Next Events

Commerzbank & ODDO BHF Corporate Conference	6 Sep
UBS, Quo Vadis Industrials Tour, virtual	15 Sep
and Goldman Sachs 12th Berenberg German Corp. Conference	20 Sep
Baader Investment Conference	21 Sep
Q3/2023 report	9 Nov
Capital Markets Day	20/21 Nov
Metzler Roundtable	27 Nov
Deutsches Eigenkapitalforum	28 Nov
Goldman Sachs Industrial Conference	6 Dec
Berenberg European Conference	7 Dec
Kepler Cheuvreux, CEO Tour, virtual	11 Dec

IR Contacts

Dirk Winkels Head of Investor Relations Tel: +49-211 473-4749 Email: [email protected]

Anika Marker

Investor Relations Manager Tel: +49 171 4174060 Email: [email protected]

Rosalinde Schulte Investor Relations Assistant Tel: +49-211 473-4718 Email: [email protected]

Quick link to our documents

APPENDIX

Outlook Group - forecast business performance in 2023

		2023	2022
Sales
Group	€ million	sales growth to €7.4 bn to €7.6 bn	6,410
Division Vehicle Systems	€ million	sales growth 25% to 30%	2,270
Division Weapon and Ammunition	€ million	sales growth 25% to 30%	1,470
Division Electronic Solutions	€ million	sales growth 15% to 20%	1,063
Division Sensors and Actuators	€ million	sales growth 5% to 8%	1,382
Division Materials and Trade	€ million	sales growth 4% to 7%	743
Operating result margin
Group	%	operating result margin around 12%	11.8
Division Vehicle Systems	%	operating result margin 11% to 13%	11.4
Division Weapon and Ammunition	%	operating result margin 20% to 22%	20.8
Division Electronic Solutions	%	operating result margin 11% to 13%	11.1
Division Sensors and Actuators	%	operating result margin 7% to 9%	6.9
Division Materials and Trade	%	operating result margin 9% to 11%	9.1
OFCF (in relation to sales)
Group	%	4% to 6 %	(2.4)

Statement of financial positions

€ million	6/30/2023	12/31/2022

Assets
Goodwill	481	483
Other intangible assets	347	338
Right-of-use assets	248	209
Property, plant and equipment	1,141	1,137
Investment property	2 3	2 4
Investments accounted for using the equity method	387	408
Other non-current assets	194	187
Deferred taxes	136	9 8
Non-current assets	2,958	2,884

Inventories	2,786	1,976
Contract assets	446	362
Trade receivables	1,439	1,548
Other current assets	284	242
Income tax receivables	2 4	2 3
Securities held for trade	134	132
Cash and cash equivalents	1,347	545
Assets held for sale	323	377
Current assets	6,783	5,206
Total assets	9,742	8,089

€ million	6/30/2023	12/31/2022
Equity and liabilities	-	-
Share capital	112	112
Capital reserves	685	566
Retained earnings	2,020	2,140
Treasury shares	(5)	(6)
Rheinmetall AG shareholders' equity	2,811	2,812
Non-controlling interests	269	271
Equity	3,079	3,083

Provisions for pensions and similar obligations	485	484
Other non-current provisions	195	205
Non-current financial debts	1,579	517
Other non-current liabilities	6 2	5 6
Deferred taxes	114	7 8
Non-current liabilities	2,436	1,341

Other current provisions	613	674
Current financial debts	663	454
Contract liabilities	1,597	1,120
Trade liabilities	932	931
Other current liabilities	176	200
Income tax liabilities	3 6	6 7
Liabilities directly related to assets held for sale	210	220
Current liabilities	4,226	3,665
Total equity and liabilities	9,742	8,089

Income Statement

Q2 2023	Q2 2022	H 1 2023	H 1 2022
1,498	1,408	2,861	2,674
213	86	545	229
1,711	1,494	3,405	2,902
22	39	55	68
861	714	1,754	1,398
507	464	1,007	921
63	62	126	122
183	166	365	319
(4)	(2)	(17)	15
3	(21)	2	(40)
118	104	193	185
3	1	19	2
18	7	41	14
103	9 8	171	172
(31)	(30)	(51)	(45)
7 2	6 8	120	128
1	5	5	6
7 3	7 3	125	134

17	16	15	29
56	57	110	105
			€ 2.42
			€ 2.28

			€ 0.14
€ 1.29	€ 1.33	€ 2.53	€ 2.42
€ 1.27	€ 1.21	€ 2.42	€ 2.28

	€ 1.29 € 1.27 € 0.02	€ 1.33 € 1.21 € 0.12	€ 2.53 € 2.42 € 0.11

Cashflow Statement

€ million	H 1 2023	H 1 2022
Earnings after taxes	125	134
Amortization / depreciation / impairment of property, plant and equipment, intangible assets and investment	126	122
property Allocation of CTA assets to secure pension and partial retirement obligations	(12)	(50)
Other changes in pension provisions	4	(12)
Income / expenses from disposals of non-current assets	(10)	(1)
Changes in other provisions	(22)	(20)
Changes in working capital	(350)	(589)
Changes in receivables, liabilities (without financial debt) and prepaid & deferred items	(120)	(131)
Pro rata income / loss from investments accounted for using the equity method	17	(15)
Dividends received from investments accounted for using the equity method	4	4
Other non-cash expenses and income	16	0
perating activities 1 C ash flo w fro m o	(223)	(557)
Of which continuing operations	(199)	(549)
Of which discontinued operations	(24)	(8)

Investments in property, plant and equipment, intangible assets and investment property	(132)	(100)
Cash inflows from the disposal of property, plant and equipment, intangible assets and investment property Cash inflows from disinvestments in consolidated companies and financial assets	(2) 48	4 0
Cash outflows for investments in consolidated companies and financial assets	(8)	(198)
C ash flo w fro m investing activities	(94)	(294)
Of which continuing operations	(72)	(287)
Of which discontinued operations	(22)	(7)

Dividends paid out by Rheinmetall AG	(187)	(143)
Other profit distributions	(4)	(6)
Borrowing of financial debts	394	299
Repayment of financial debts	(76)	(108)
Cash inflows from the issuance of convertible bonds - Addition to equity	113	-
Cash inflows from the issuance of convertible bonds - Fair value financial liability	887	-
Transaction costs for the issuance of convertible bonds	(7)	-
C ash flo w fro m financing activities	1,121	4 2
Of which continuing operations	1,094	62
Of which discontinued operations	27	(20)
C hanges in cash and cash equivalents	804	(809)
Changes in cash and cash equivalents due to exchange rates	(9)	3
T o tal change in cash and cash equivalents	795	(806)
Opening cash and cash equivalents January 1	568	1,058
C lo sing cash and cash equivalents June 30	1,363	251
Closing cash and cash equivalents June 30 from discontinued operations	16	15
C lo sing cash and cash equivalents as per co nso lidated statement o f financial po sitio n	1,347	236

Derivation of diluted earnings per share

	Continuing Operations	Discontinued Operations	H1 2023	Continuing Operations	Discontinued Operations	H1 2022
Earnings after taxes in € million - Rheinmetall AG shareholders	105	5	110	99	6	105
Adjustment for interest expense in respect of the convertible bond in € million	15	-	15	-	-	-
Effect of adjustment for interest expense in respect of the convertible bond on personnel expenses in € million	(1)		-1	-	-	-
Tax effects on the adjustment for interest expense in respect of the convertible bond and on the effect on personnel expenses in €million	(4)	-	-4	-	-	-
Diluted earnings after taxes in € million - Rheinmetall AG shareholders	115	5	120	99	6	105
Weighted number of shares in millions - basic		43,40			43,35
Effect from the potential conversion of the convertible bond in millions		2,60			-
Weighted number of shares in millions - diluted		46,00			43,35
Basic earnings per share	€ 2,42	€ 0,11	€ 2,53	€ 2,28	€ 0,14	€ 2,42
Diluted earnings per share	€ 2,51	€ 0,10	€ 2,61	€ 2,28	€ 0,14	€ 2,42
Adjusted diluted earnings per share (due to antidilutive effect)	€ 2,42	€ 0,11	€ 2,53	-	-	-