CONFERENCE CALL Q1 2024

Dagmar Steinert, CFO

May 14, 2024

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.

Q1 2024 Group Highlights Excellent start to the year with RHM backlog surpassing €40 billion mark

Stellar growth in the first quarter

Sales €1,581m (+16% YoY)
Op. Result* €134m (+60% YoY)
Margin* 8.5% (+2.4 pp YoY)
oFCF €-187m (-€82m YoY)

Order momentum keeps picking up

RHM Nomination €3,933m
RHM Backlog €40.197m
Top projects:
- Skyranger Germany and Austria
- AHEAD ammunition
- Service contract heavy weapon carrier

2024 Guidance confirmed

Operating margin: 14-15%

("cash conversion rate")

oFCF to operating result: ~40%

Sales: ~€10bn

Pistons business fully disposed
Closing of the small-bore pistons business effective 15 April 2024
Large-bore pistons already closed in 2023
Exit now fully accomplished

Q1 2024 Group Highlights Major capacity expansions across Europe well on track

Plant Niedersachsen and Weeze fully on schedule
SOP in Niedersachsen expected for Spring 2025
SOP in Weeze scheduled for 2025 with first deliveries in 2027

New powder factory in Romania in advanced discussion
Potential annual capacity of up to 1,500t
Closing of Automecanica acquisition on April 30th 2024

Additional artillery ammunition plant in Lithuania with up to 100k rounds capacity p.a.
MoU signed April 16th 2024

Q1 2024 Group Highlights: Key Financial Data Double-digit sales growth with strong margin expansion

Q1 2024 Group Highlights: Key Financial Data Working capital build-up and new capex projects weigh on oFCF

1.01

Q1 2024: Balance Sheet Unleveraged balance sheet with ample fire power

Q1 2024: Nomination and Backlog

Air defence orders elevate Rheinmetall Nominations to a new Q1 record

1) Rheinmetall Nomination = Order Intake (W+A, ES, VS: Order intake – call offs from existing frame backlog) + Frame Nomination (W+A, ES, VS:) + Booked Business (PS)

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 PS based on the nomination letters of the booked business)

Q1 2024: Segments Weapon and Ammunition is the main driver for a strong Q1 performance

in €m	Sales		Operating Result			Margin
	Q1 2023	Q1 2024	delta	Q1 2023	Q1 2024	delta	Q1 2023	Q1 2024

Vehicle Systems	462	493	6.7%	43	38	-11.2%	9.2%	7.7%

Weapon and Ammunition	213	362	70.1%	23	53	129.1%	10.9%	14.7%

Electronic Solutions	227	287	26.1%	12	17	40.3%	5.4%	6.0%

Power Systems	541	541	0.1%	24	31	29.3%	4.5%	5.8%

Non-divisional / Consolidation	(80)	(101)	-26.7%	(19)	(6)	68.9%

Rheinmetall Group	1,363	1,581	16.0%	83	134	60.3%	6.1%	8.5%

Q1 2024 Key Financial Data Operating result consolidation improved significantly year over year

Sales consolidation

(in €m / in % of sales)

Operating result consolidation

YoY decline in consolidation effects due to

Improved operational performance of 4iG
Change of allocation logic (mainly IT)
Disposal of remaining Shriram shares

Expected FY 2024 impact

Sales consolidation effect of ~6%
Operating result consolidation effect of ~5%

Q1 2024 Key Financial Data Fueling growth: 2024 capex powers expansion

s t c e oj	Vehicle Systems	Weapon and Ammunition	Electronic Solutions	Power Systems	Non-Divisional
r p 4 2 0 2 p o T	 Hungary  Panther  Vienna	 Niedersachsen  Expal  Hungary  Aschau  South Africa	 F-35  Panther	 Logistic centre  Invent	 IT

Q2 2024 Outlook Business acceleration starts in the second quarter

Q&A Thank you for your attention!

Next events and IR contacts

Financial calendar Documents IR Contacts and next events

Click or scan

Dirk Winkels, Head of Investor Relations Tel: +49 162 2688921 Email: [email protected]

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

Carl-Philip Schniewind, Investor Relations Manager Tel: +49 175 2453310 Email: [email protected]

Rosalinde Schulte, Investor Relations Assistant Tel: +49 211 4734718 Email: [email protected]

APPENDIX

Statement of financial position

€ million	3/31/2024	12/31/2023

Assets
Goodwill	1,126	1,125
Other intangible assets	941	952
Right-of-use assets	265	271
Property, plant and equipment	1,396	1,370
Investment property	2 2	2 2
Investments accounted for using the equity method1	367	373
Other non-current assets	369	339
Deferred taxes	151	164
Non-current assets	4,636	4,615

Inventories	3,859	3,244
Contract assets	537	516
Trade receivables	1,509	2,021
Other current assets	264	251
Income tax receivables	5 1	1 3
Securities held for trade	-	-
Cash and cash equivalents	515	850
Assets held for sale	217	196
Current assets	6,953	7,092
Total assets	11,589	11,707

Note: 1 The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd.

€ million	3/31/2024	12/31/2023
Equity and liabilities
Share capital	112	112
Capital reserves	687	676
Retained earnings	2,556	2,533
Treasury shares	(4)	(5)
Rheinmetall AG shareholders' equity	3,350	3,316
Non-controlling interests	331	327
Equity	3,681	3,643
Provisions for pensions and similar obligations	531	562
Other non-current provisions	278	230
Non-current financial debts	1,487	1,503
Other non-current liabilities	5 1	5 1
Deferred taxes	243	260
Non-current liabilities	2,589	2,605
Other current provisions	707	690
Current financial debts	301	410
Contract liabilities	2,746	2,594
Trade liabilities	1,029	1,222
Other current liabilities	265	274
Income tax liabilities	123	108
Liabilities directly related to assets held for sale	147	161
Current liabilities	5,319	5,459
Total equity and liabilities	11,589	11,707

Income Statement

€ million	Q1 2024	Q1 2023
Sales	1,581	1,363
Changes in inventories and work performed by the enterprise and capitalized	432	332
T o tal o perating perfo rmance	2,013	1,695
Other operating income	42	32
Cost of materials	1,039	893
Personnel costs	581	500
Amortization, depreciation and impairment	91	63
Other operating expenses	228	182
Result from investments accounted for using the equity method1	(1)	(10)
Other financial result	(9)	(2)
) 1 Earnings befo re interest and taxes (EB IT	108	7 8
Interest income	5	16
Interest expenses	26	24
) 1 Earnings befo re taxes (EB T	8 6	7 0
Income taxes	(31)	(20)
ns 1 Earnings fro m co ntinuing o peratio	5 5	5 0
Earnings from discontinued operations 1	(1)	4
Earnings after taxes 1	5 4	5 4
Of which:
Non-controlling interests	6	(3)
Rheinmetall AG shareholders 1	48	56
asic earnings per share 1 B	€ 1.10	€ 1.30
Basic earnings per share from continuing operations 1	€ 1.13	€ 1.21

Basic earnings per share from discontinued operations 1	€ (0.03)	€ 0.09
iluted earnings per share 1 D	€ 1.10	€ 1.30
Diluted earnings per share from continuing operations 1	€ 1.13	€ 1.21
Diluted earnings per share from discontinued operations 1	€ (0.03)	€ 0.09

Note: 1 The figures for the previous year were restated as a result of the amended schedule for the disposal of and the retrospective atequity valuation of the investment in Shriram Pistons & Rings Ltd.

Cashflow Statement

Statement of cash flows of the Rheinmetall Group

€ million	Q1 2024	Q1 2023
Earnings after taxes1	54	54
Amortization / depreciation / impairment of property, plant and equipment, intangible assets and investment property	91	63
Allocation of CTA assets to secure pension and partial retirement obligations	(3)	(3)
Other changes in pension provisions	(6)	9
Income / expenses from disposals of non-current assets	1	(10)
Changes in other provisions	93	(6)
Changes in working capital	(202)	(101)
Changes in receivables, liabilities (without financial debt) and prepaid & deferred items	(145)	(85)
Pro rata income / loss from investments accounted for using the equity method1	1	10
Other non-cash expenses and income	11	(1)
Cash flow from operating activities2	(106)	(70)
Of which continuing operations	(88)	(53)
Of which discontinued operations	(18)	(18)

Investments in property, plant and equipment, intangible assets and investment property	(105)	(56)
Cash inflows from the disposal of property, plant and equipment, intangible assets and investment property	2	0
Cash inflows from disinvestments in consolidated companies and financial assets	27	56
Cash outflows for investments in consolidated companies and financial assets	-22	-10
Cash flow from investing activities	(98)	(11)
Of which continuing operations	(119)	8
Of which discontinued operations	21	(19)
Borrowing of financial debts	94	165
Repayment of financial debts	(227)	(49)
Cash inflows from the issuance of convertible bond - Addition to equity	-	113
Cash inflows from the issuance of convertible bond - Fair value financial liability	-	887
Transaction costs for the issuance of convertible bond	-	(7)
Cash flow from financing activities	(133)	1,109
Of which continuing operations	(64)	1,131
Of which discontinued operations	(69)	(22)
Changes in cash and cash equivalents	(337)	1,028
Changes in cash and cash equivalents due to exchange rates	(2)	(3)
Total change in cash and cash equivalents	(340)	1,025
Opening cash and cash equivalents January 1	873	568
Closing cash and cash equivalents March 31	533	1,593
Closing cash and cash equivalents March 31 from discontinued operations	18	14
Closing cash and cash equivalents as per consolidated statement of financial position March 31	515	1,579

Note: 1 The previous year's figures were adjusted as a result of the amended disposal plan and the retrospective at-equity valuation of the investment in Shriram Pistons & Rings Ltd., 2 Included therein: Net income tax payments: EUR -61 million (previous year: EUR -23 million); net interest payments: EUR -20 million (previous year: EUR 1 million)

Derivation of diluted earnings per share

Derivation of diluted earnings per share	Continuing	Discontinued		Continuing	Discontinued
	Operations	Operations	Q1 2024	Operations	Operations	Q1 2023
1 Ea rnings a fte r ta xe s in € million - Rhe inme ta ll AG sha re holde rs	4 9	(1)	4 8	5 3	4	5 6
Adjustment for interest expense in respect of the convertible bond in € million	10	-	10	6	-	6
Tax effects on the adjustment for interest expense in respect of the convertible bond in € million	(3)	-	(3)	(2)	-	(2)
1 Dilute d e a rnings a fte r ta xe s in € million - Rhe inme ta ll AG sha re holde rs	5 6	(1)	5 4	5 7	4	6 0
We ighte d numbe r of sha re s in millions - ba sic	4 3 .4 2			4 3 .3 8
Effect from the potential conversion of the convertible bond in millions	3.22			1.93
We ighte d numbe r of sha re s in millions - dilute d	4 6 .6 4			4 5 .3 2
1 Ba sic e a rnings pe r sha re	€ 1.13	€ (0 .0 3 )	€ 1.10	€ 1.2 1	€ 0 .0 9	€ 1.3 0
Diluted earnings per share1	€ 1.20	€ (0.03)	€ 1.17	€ 1.26	€ 0.08	€ 1.34
1 Adjuste d dilute d e a rnings pe r sha re (due to a ntidilutive e ffe c t)	€ 1.13	€ (0 .0 3 )	€ 1.10	€ 1.2 1	€ 0 .0 9	€ 1.3 0

Q1 2024 CONFERENCE CALL

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Rheinmetall AG Call Transcript 2024

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