Q1 2023 Conference call

CONFERENCE CALL Q1 2023

Transformation for growth

Dagmar Steinert, CFO

May 04, 2023

May 04, 2023

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Q1 2023 Conference call

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.

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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.

© Rheinmetall AG I May 04, 2023

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Q1 2023 Conference call

Q1 2023 Group Highlights

Start into the year within company expectations

Strong Q1 cashflow Seasonality pattern unchanged

Operating result held back by at- equity effects

2023 Guidance confirmed

  • Sales €1,363m
  • Operating Result €73m
  • Margin 5.4%
  • OFCF €-105m
  • RHM Backlog €28,194m
  • RHM Nomination €3,104m
  • 2023 expected to be backend loaded
  • Structural high Q4 sales volume in Division Weapon and Ammunition
  • At-equitywith negative €29 m swing effect
  • Inflation compensation burdened Q1
  • Q1 2022 result included favorable high single digit million effect
  • Sales: €7.4 to 7.6 bn
  • Operating margin: ~12%
  • Operating free cash flow: 4-6%OFCF to sales

© Rheinmetall AG I May 04, 2023

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Q1 2023 Conference call

Q1 2023 Market Update Germany

Reorganization of military procurement and first orders ahead

  • New defense minister Pistorius in place since January 2023
    • Complete overhaul of MOD structure and processes initiated
    • Commitment to 2% defence spending and request for a budget increase in 2024
  • Puma issue resolved, upgrade order received in Q1. Discussions on 2nd lot resumed
  • Continuous dialogue on ammunition frame work contracts
    • Different contracts for several calibers for Germany and Ukraine support
  • Caracal airborne platform introduced, decision expected soon
  • Germany-Australialetter of cooperation, for GtoG deal on "Heavy
    Weapon Carrier"
  • MoU with Lockheed regarding the cooperation on Rocket
    Artillery Systems

© Rheinmetall AG I May 04, 2023

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Q1 2023 Conference call

Q1 2023 Market Update

Support of Ukraine remains a top priority

  • Order intake overview
    • 20 Marder vehicles (already delivered in Q1)
    • Medium-caliberammunition
      • Gepard: 300k rounds (delivery starts H2 2023)
      • Marder
    • Tank ammunition
      • Leopard 1 & 2
    • Artillery ammunition
    • 2nd Field hospital
  • Additional funding commitment of triple digit million amount from Germany
  • Additional financing and sourcing commitment from Europe
    • € 2bn ammunition procurement initiative
    • 14 additional Leopard 2 financed by Denmark and Netherlands

© Rheinmetall AG I May 04, 2023

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Rheinmetall AG published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 16:24:05 UTC.