PRESS RELEASE : HENSOLDT AG exceeds expectations and reports order backlog at record level

DGAP-News: HENSOLDT AG / Key word(s): Preliminary Results 
HENSOLDT AG exceeds expectations and reports order backlog at record level 
2021-02-24 / 07:30 
The issuer is solely responsible for the content of this announcement. 
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HENSOLDT AG exceeds expectations and reports order backlog at record level 
- Order backlog at record level of EUR 3,424 million (+ 55%) 
- Revenue increased by 8.3% to EUR 1,207 million 
- Adjusted EBITDA margin at 18.2%. 
- Net leverage reduced to 2.6x due to strong cash flow and successful IPO 
- Investments in core business and key technologies expanded 
- Management Board proposes dividend of EUR 0.13 per share 
Taufkirchen, 24 February 2021 - HENSOLDT AG ("HENSOLDT") has reached and partially exceeded its 2020 financial guidance 
for all relevant figures. Its revenue increased by 8.3% to EUR 1,207 million (previous year: EUR 1,114 million) due to 
consistent revenue transformation from existing contracts. Adjusted EBITDA improved by 1.7% to EUR 219 million 
(previous year: EUR 215.6 million) despite ramp up effects of major projects. The order backlog is at a record level of 
EUR 3,424 million (previous year: EUR 2,202 million) driven by a number of new major projects. The strong business year 
underlines HENSOLDT's market-leading position as a strategic partner for defence and security solutions for customers 
worldwide. 
Thomas Müller, CEO of HENSOLDT AG, says: "We are very proud of HENSOLDT's successful development in this extraordinary 
year 2020, which was marked by the Corona pandemic. We have shown a strong operational performance and reached and 
partially outperformed our expectations in all relevant figures. This provides us with the financial leeway to continue 
to invest in our core business as well as in important future and key technologies. In short: In 2020 we laid the 
foundation for future growth to expand our leading market position for defence and security solutions." 
Axel Salzmann, CFO of HENSOLDT AG, says: "Due to our successful IPO and our strong business development in 2020, we 
were able to almost halve our net debt. We have thus exceeded the promise made to our shareholders and the capital 
market, also with regard to our leverage. This allows us not only to continue to invest in our profitable growth, but 
also to propose a dividend of EUR 0.13 per share." 
Expansion of global footprint and investments in new technologies 
In 2020, HENSOLDT successfully continued its growth trajectory. With the closing of the acquisition of the Air Traffic 
Management and Defence & Security business units of Tellumat (PTY) Ltd, HENSOLDT strengthens its presence in Africa. 
This step also broadens HENSOLDT's technology portfolio, particularly in the area of radar development. 
With the acquisition of SAIL LABS, a leading provider of AI-based Open-Source-Intelligence (OSINT) solutions, HENSOLDT 
expands its portfolio to virtual sensors, taking an important step towards becoming one of the leading data analytics 
houses in the German security and defence sector. 
To meet the growth of its business, HENSOLDT creates in total more than 500 new jobs in development and production 
worldwide and invests approximately EUR 30 million in the expansion of its German site in Ulm. 
In addition, HENSOLDT has consistently improved its operational processes as part of the HENSOLDT GO! transformation 
programme. The programme particularly focuses on continuous improvement and supply chain management. 
Successful IPO and Federal Republic of Germany as future anchor shareholder 
Only few weeks after the successful IPO, HENSOLDT entered the German SDAX index in December 2020. This - together with 
the announcement by the German federal government to acquire a 25.1% stake in HENSOLDT from KKR - underlines the great 
confidence in HENSOLDT's competencies and its key role within the German security and defence sector. 
Stable revenue and earnings growth 
In 2020, HENSOLDT's revenue increased by 8.3% to EUR [1,207] million (previous year: EUR 1,114 million). Adjusted 
EBITDA improved by 1.7% to EUR [219] million (previous year: EUR 216 million). This development was mainly driven by 
new major contracts as well as an efficient project management. The acquisition of the French defence electronics 
company Nexeya, which took place in 2019, is now fully consolidated and also contributes to the result. 
Order backlog at record level 
HENSOLDT's order backlog increased by 55.5% to EUR [3,424] million in the reporting year 2020 (previous year: EUR 2,202 
million). This corresponds to about twice HENSOLDT AG's annual revenue. The positive development was largely driven by 
a number of new major orders, including an order worth EUR 1.5 billion for the development and production of Europe's 
technologically leading new Active Electronically Scanned Array radar for the German and Spanish Eurofighter combat 
aircrafts. 
The high order backlog is proof of HENSOLDT's strategy to market investments in key and future technologies quickly and 
successfully. Thanks to its technologically leading and platform-independent solutions, HENSOLDT is confident to win 
orders from a pipeline of potential national and international projects worth around EUR 10 billion between 2021 and 
2023. 
Cash flow significantly increased and net debt further reduced 
Adjusted free cash flow before interest and taxes improved significantly to EUR 196 million (previous year EUR 75 
million). This development was largely driven by an efficient working capital management. Due to the successful IPO and 
the positive cash flow development, HENSOLDT further reduced its net leverage ratio to 2.6x (previous year: 4.6x) and 
outperformed the initial guidance of approx. 3.0x. 
Dividend proposal 
Based on the strong business development in 2020, HENSOLDT's Management Board intends to propose the Supervisory Board 
and the Annual General Meeting a dividend pay-out of 20% of the adjusted net income for the year 2020. This corresponds 
to a dividend proposal of EUR 0.13 per share. 
Key Financials 
EUR Million                    FY 2020 FY 2019 ? Prior Year 
Revenue                          1,207   1,114       + 8.3% 
Adjusted EBITDA                    219     216       + 1.7% 
Order Intake                     2,541   1,040       + 144% 
Order Backlog                    3,424   2,202      + 55.5% 
Adjusted Free-Cash-Flow            196      75     + 162.6% 
(before Tax and Interest) 
Net Leverage (excl. Pensions)      571     918      - 37.8% 

Outlook for 2021

For the financial year 2021, HENSOLDT expects continued positive business momentum and expects a currency- and portfolio-adjusted consolidated revenue of between EUR 1,400 and 1,600 million and an adjusted EBITDA margin of 18% excluding pass-through revenues. In addition, the company plans to further reduce its debt level and to lower its net leverage to below 2.25x by the end of 2021.

All figures are preliminary and unaudited. The audited and certified annual report for 2020 will be available on HENSOLDT's Investor Relations website on 22 March 2021. The results for the first quarter of 2021 will be published on 7 May 2021. The Annual General Meeting for the financial year will be held as a virtual annual general meeting on 18 May 2021. Explanations of the alternative performance indicators used can be found on our website.

About HENSOLDT

HENSOLDT is a German champion in the defence industry with a leading market position in Europe and global reach. The company, headquartered in Taufkirchen near Munich, develops sensor solutions for defence and security applications. As a technology leader, HENSOLDT is also continuously expanding its portfolio in cyber and developing new products to combat a wide range of threats based on innovative approaches to data management, robotics and cybersecurity. With more than 5,600 employees, HENSOLDT generated revenues of EUR 1.2 billion in 2020. HENSOLDT is listed on SDAX index of the Frankfurt Stock Exchange.

www.hensoldt.net

Press contact HENSOLDT Joachim Schranzhofer Tel.: [phone] [e-mail] -----------------------------------------------------------------------------------------------------------------------

2021-02-24 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------

Language:     English 
Company:      HENSOLDT AG 
              Willy-Messerschmitt-Straße 3 
              82024 Taufkirchen 
              Germany 
Phone:        [phone] - 0 
E-mail:       [e-mail] 
Internet:     www.hensoldt.net 
ISIN:         DE000HAG0005 
WKN:          HAG000 
Indices:      SDAX 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1170536 
 
End of News   DGAP News Service 
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1170536 2021-02-24

(END) Dow Jones Newswires

February 24, 2021 01:31 ET (06:31 GMT)