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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Focusing on Execution, Growth and Innovation Capital Markets Day 2024 12th December 2024
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Content & Agenda HENSOLDT CMD 2024 North Star: our strategy to capture future growth Financial performance and outlook Executing and growing in a dynamic market 1 2 3 Coffee Break Q&AWelcome
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT CMD 2024 Executing and growing in a dynamic market1
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Key enablers for growth HENSOLDT CMD 2024 4 Political supportMarket Change plan Portfolio Strong support by political stakeholders Strong YTD, outlook 2024 and momentum for growth Right technologies and solutions capabilities in place Clear plan to improve and deliver Growth Strategy North Star to take HENSOLDT to the next level Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Navigating our path towards HENSOLDT 2.0 HENSOLDT CMD 2024 5 New divisional setupMid-term priorities North Star Operational Excellence HENSOLDT 2.0 Internationalization Digitalization ESG PMI Radar & EW Optronics Services & Training Multi-Domain Solutions Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Strong drivers to increase defence spending HENSOLDT CMD 2024 6 US administration progressively pushing NATO members to increase defence spending targets Catalysing effect on defence spending in Europe New elections will be held in February 2025 All German democratic parties support expanding defence spending and sustaining Ukrainian aid Continuous review of conventional capabilities due to recent Russian aggressions NATO spending on major front-line capabilities, like air defence, expected to increase European SovereigntyGerman Parliamentary Elections NATO Capabilities Review Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 7 High visibility from order backlog and pipeline HENSOLDT CMD 2024 Unweighted pipeline(1) (€bn)Order backlog (€bn) Source: HENSOL DT AG. (1) Pipeline is defined as total identified op portunities open fo r tender, based o n management estimates of to tal value of contracts add ressable over specified period; includ es ESG from 2025 -2027/30 E (unad justed for win probabil ities f or H EN SOLDT) 10 ~37 ~46 At IPO 2021 - 2023E Today 2025E - 2027E Identified pipeline for 2025E - 2030E 3.0x 2.2 6.5 2019 9M 2024
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 8 Important orders received during first 9 months HENSOLDT CMD 2024 Final Focus MetrologyAir Defence Radars LEOPARD 2 ZEBEL F126 Commander periscope, gunner thermal sight, multispectral sight for driver NNbS, Ukraine, ESSI Operation of the central German Armed Forces spare parts logistics Next generation of high precision measurement technology FFM TRS-4D radars for additional F126 frigates Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 9 Technological leadership in a rapidly changing operational environment HENSOLDT CMD 2024 OctoEye360Ceretron TwinSens Kalaetron Integral Combines Twinvis passive radar with TRML-4D active radar to reduce vulnerability of GBAD assets Fuses sensor data, evaluates, processes and provides an AI-supported operational picture Airborne Electronic Support and SIGINT system is critical to the German Pegasus Program 360° situational awareness system for submarine ISTAR missions Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 10 HENSOLDT strongly positioned in key defence programs in Germany and Europe across all domains HENSOLDT CMD 2024 FCAS Future combat air system Eurofighter Typhoon ECRS Mk1 radar and PRAETORIAN eVolution HTH Heavy Transport Helicopter P8 / MAWS Maritime Patrol Aircraft F35 Stealth Fighter Jet F126 Frigate PEGASUS SIGINT Signal Intelligence Aircraft Arrow 3 Exoatmospher icballistic missile def enc e syste m LEOPARD 2 / PUMA Main battle tank and armoured vehicles NNbS Close- and short-range air defence system Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 11 HENSOLDT has gained trust and support of political stakeholders HENSOLDT CMD 2024 HENSOLDT the national German sensor champion - further strengthened with the acquisition of ESG 25.1% German Government shareholding - protecting German key technology Pure-play and platform independence - our core DNA for future growth Key supplier to German armed forces - products support German government’s strategy Trusted partner with government stakeholders - intensive dialogue across political landscape Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT CMD 2024 North Star: our strategy to capture future growth2
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. North Star is our clear vision to guide the next stage of growth HENSOLDT CMD 2024 13 New divisional setupMid-term priorities North Star Operational Excellence HENSOLDT 2.0 Internationalization Digitalization ESG PMI Radar & EW Optronics Services & Training Multi-Domain Solutions Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 14 Four axes define our strategy Deliver at scale Pioneer Software Defined Defence Grow with focus Lead our team into the future Achieve step change in operational excellence to meet volume and performance requirements. Digitize and enhance platform-independent core products, become an integrator of multi-domain data-enabled solutions, expand into new data services. Deliver sustainable and profitable growth in Germany, Europe and selected international markets. Act as #OneHENSOLDT team and become a unique employer of choice in our sector. Commitment AmbitionFoundation Enabler HENSOLDT CMD 2024
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Our formula to reach €5bn revenues by 2030 HENSOLDT CMD 2024 15 € 5 Bn Revenue in 2030 Focused growth Smart and Connected Sensors Scaled and enhanced products Diversified Services High value-added services Multi-Domain Solutions Higher value chain positioning Targeted M&A Source: HENSOL DT AG. 5 terms to boost our growth and ensure long-term resilience
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Deliver at scale Christian Ladurner, CFO
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Key enablers to deliver at scale HENSOLDT CMD 2024 17 Infrastructure ImprovementOperational Excellence Processes and IT Significant investments to expand production capacities (Ulm, Laichingen, Oberkochen, Wetzlar) Roll-out on track to full implementation by 2027 Industrialize Key Products Supply Chain Robustness Engineering Efficiency 3. Resilient1. Industrial 2. Agile HENSOLDT Go! Wave 3 key initiatives pave the way for economies of scale Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 18 HENSOLDT GO! delivers HENSOLDT CMD 2024 We have achieved key targetsWe have set the foundation We continue to scale up Industrial, agile & resilient Industrialize Key Products Supply Chain Robustness Engineering Efficiency 3. Resilient 1. Industrial 2. Agile Key products (TRML -4D, Spexer, Sights) industrialized E2E Integrated Industrialization Processes Engineering hub to manage externalization established Organizational foundation for modularization set On-time delivery rate improved Supplier Quality stabilized for critical parts Preventive Supplier Quality Management Ramp-up of externalization via hub Lead modularization with pilots key products identified as relevant and integrated of engineering workload externalized by FY24 additional suppliers qualified, and further quality improvement measures agreed >10% 11 11 out of 32 Ramp-Up of integrated key products successfully demonstrated Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 19 Significantly increased production capacity at the Ulm site HENSOLDT CMD 2024 Key factsProject Highlights TRML-4D Production Capacity (units per annum)Headcount increase of 140+ FTEs Ramp-up of new machinery, including • new assembly line and mechanical and electronic machinery for for TRML-4D production • Investments into automation of testing for final assembly • New testing chambers and tester for transmit and receive modules to service Spexer commitments Spexer Production Capacity (1) (units per annum) Source: HENSOL DT AG. (1) Includes Spexer Antennas of Type AN U M, AN U L and MkII 2D 2 18 2021 2025 +800% 20 97 2023 2025 +385%
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 0 28 384 704 20 Increased production capacity at the Oberkochen and Wetzlar sites HENSOLDT CMD 2024 Key factsProject Highlights Sights(1) (units per annum) Headcount increase of 50 FTEs, especially in the area of ground-based systems Start of production for new products, including new WAO and SETAS Movement to Wetzlar concluded Oberkochen move on track Further ramp-up prepared for 2025, especially in ground-based systems SETAS (units per annum) Source: HENSOL DT AG. (1) Includes PERI RTWL new and retrofit, W AO new and retrofit, PERI R17, ATT ICA and Spectus . 2023 2025 83% 2023 2025
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 21 New logistic center at the Laichingen site HENSOLDT CMD 2024 Project Highlights Centralised logistics operations for sites in southern Germany 29.600m2 centre with 10k+ pallets and ~40k RackBot containers Go-live successfully performed end of October 2024 First SAP S4 HANA module (EWM) launched to enable real time traceability Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 22 #oneSAPnow as key enabler for North Star Integration on track for our global end-to-end business and IT transformation HENSOLDT CMD 2024 One global SAP template will standardize business processes group -wide First successful go-live for logistics warehouse accomplished ESG fully integrated into roll-out plan with go-live planned in January '27 In the past months, the program has achieved several milestones… … 2024 20272025 2026 … Roll-out wave 1 Roll-out wave 2 …… Realize Pilot Roll-out Early 2025 Global CRM roll -out Mid 2025 Global HCM roll -out End of 2025 SAP S/4 pilot go -live End of 2027 Fully rolled -out and migrated Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 23 ESG integration on track, synergy potential confirmed HENSOLDT CMD 2024 Source: HENSOL DT AG. Significant short -term OI capturesSynergies confirmed and on track Strong mid -/long-term OI synergy potential Overhead & central functions Opex synergies Order intake synergies • Airborne platform sensor integration & data analysis: ZEK, German EW capability retention • Reconnaissance vehicle for the German Armed Forces: Korsak • Camp protection solutions: e.g. AZUL Germany & intl. programs • German frigate F127 in partnership with Lockheed Martin • Boeing platforms: German maritime reconnaissance aircraft P-8 and German Heavy Transport Helicopter CH-47F Chinook • Pipeline of ~100 synergy campaigns across portfolio and domains
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Grow with focus Oliver Dörre, CEO
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. The world is facing ongoing conflicts and instability HENSOLDT CMD 2024 25 Macro Trends Key Threats Geopolitical hotspots New conflict zones US pressure on NATO Energy and resource scarcity Economic power shifts European permacrisis Regional destabilizers Pacific instability Pervasive cyber threat Source: HENSOL DT AG, Oliver W yman.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 26 Our customers invest into defence HENSOLDT CMD 2024 Implications for alliance, industry and HENSOLDTGrowth drivers Accelerating technological development Increasing demand for conventional capabilities • Significant pressure on Europe to become more independent • 23 of 32 NATO members will reach or exceed 2% GDP for defence in 2024 and beyond • Growing discussion about increased target to 3% of GDP • Quality “smart” capabilities beat high-quantity “dumb” assets • Spiral upgrade concept baselined in future platforms and systems • System of system approach already core to FCAS and MGCS • Software Defined Defence as guiding principle for our customers Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 7.3% 10.0% 5.7% Radar Electronic Warfare Optronics CAGR 2024 - 2030 Market growth strong across major market segments HENSOLDT CMD 2024 27 Global Accessible Defence Electronics Growth by Major Segment Source: Renaissance Strategic Advisors. Global figures do not includ e Russia, China, Iran, Syria, Afghanistan, North Korea 7.4% Operational imperative for interconnected sensors Strong electronics density growth Speed and scale of major procurement programs Accelerating next generation capabilities
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 28 Accessible market continues to outperform topline spending trend HENSOLDT CMD 2024 Source: Renaissance Strategic Ad visors. Glob al figures do not includ e Russia, China, Iran, Syria, Afghanistan, North Korea. (1) Rest o f Worl d excludes Geographical Europe Europe excluding GermanyGermany International (1) 2024 €3.3B 2024 €7.9B 2024 €16.6B 7.4% 5.5% 4.5% 10.6% 6.6% 7.2% Defence Spending CAGR 2024E – 2030F Accessible Defence Electronics CAGR 2024E – 2030F Defence Spending CAGR 2024E – 2030F Accessible Defence Electronics CAGR 2024 E – 2030F 2024 Accessible Market Size
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. ESG adds significant new market presence and capabilities HENSOLDT CMD 2024 29 ESG Global Accessible Market Scale Source: Renaissance Strategic Ad visors. Glob al figures do not includ e Russia, China, Iran, Syria, Afghanistan, North Korea.0 ESG Global Accessible Market Size and Key Growth Regions 20% 80% Provides MDO integration capabilities Expands services offeringKey software and system engineering capabilities 2024 €5.7B 8.6% 6.6% Germany Rest of Europe CAGR 2024 - 2030
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Increasing Scale of Existing Capabilities HENSOLDT growth fuelled by strong German customer demand HENSOLDT CMD 2024 30 Facets of German defence spending… Source: HENSOLDT AG. …with HENSOLDT positioned across all 1 Upgrades to Existing Capabilities2 Development of New Capabilities3 EF Quadriga Order Expansion Leopard 2A8 F126 Order Expansion EF EW Upgrade EF Mk1 Re-baseline F124 Upgrade PEGASUS NNbS KORSAK Recce Vehicle
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This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved. 31 Grow with focus Achieve sustainable and profitable growth Organic growth Impacted scopeCAGR p.a.~10 % Volume increase of key products Industrial collaboration and partnerships Revised key accounts and international go-to-market approach #OneHENSOLDT operating infrastructure Advanced solutions development Organic growth levers Services and training offering extension M&A growth levers Targeted M&A approach, with clear investment criteria • Key drivers, digitalization and internationalization • Active role in German and European consolidation • Value accretive transactions only 2019 2022 2024 FC 1) 2027 BP 2030 E 4.4 M&A Organic 1.1 1.7 2.4 3.4 5.0bn€ ~3%M&A driven growth 4.4 0.6 CAGR ~13% p.a. Growth ambitions 2024-2030 CAGR p.a. 1) Revenue pro forma incl. ESG full year HENSOLDT CMD 2024
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Focused international growth ambition and smart go -to-market approach HENSOLDT CMD 2024 32 Strategic actions Source: HENSOLDT AG. Targeted split of HENSOLDT revenue by region Prioritized strategy for focus countries Key account strategy Refined go-to-market strategy ~50% Germany Europe Strategic Countries Solution-oriented portfolio for B2G & B2B, also as prime-contractor Portfolio of market ready products tailored to B2B Existing products and services
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 33 New partnerships reinforce our strategy Source: HENSOL DT AG . HENSOLDT CMD 2024
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Pioneer software defined defence Oliver Dörre, CEO
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 35 Our customer’s push towards increased software -centricity means a paradigm shift in defence HENSOLDT CMD 2024 Sources: German Federal MoD, U.S. DoD, U.K. MoD, NATO’s Warfare Development Command Key leversSoftware Defined Defence (SDD) Customer paradigm shift AI for automation Sensor data fusion and connectivity Cybersecurity Open, modular architecture Combat cloud Software as the core of modular weapon and network design Decoupling of hardware and software Data-centric architecture Human-centric approach
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT is at the core of the smart and connected battlefield HENSOLDT CMD 2024 36 Presence of electronics over time HENSOLDT Sensors pre -requisite for Multi -Domain Operations Acoustics EW Optronics Radar Comms C2/BM / Avionics Leopard 2A7+ ca. 45% Eurofighter ca. 40% F125 class ca. 35% FCAS ca. 45% F127 class ca. 40% MGCS ca. 55%
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 37 Based on our core portfolio, SDD will enhance our solution offerings and add new revenue streams HENSOLDT CMD 2024 Data driven service providerSmart and connected sensor specialist Multi-domain solutions integrator Services Reinforce product core positioning Diversify services offer Develop from “Islands of excellence” • High volumes • High margin • Enabler for international growth and key account diversification • Long-term contracts, resilient business • High margin • Stronger customer intimacy through day-to-day support • Higher value capture across platforms and domains • Secure long-term positioning • Higher value for customer
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT will play a pivotal role in the SDD ecosystem HENSOLDT CMD 2024 38 Source: HENSOL DT AG. SDD ecosystem Digitalization partners Integration capabilities Source: HENSOL DT AG. HENSOLDT Network and fuse data from smart and connected multi-spectral sensors Leverage Edge AI and containerise software for cloud environment Utilise data-centric business models across multi-domain environment, e.g. SaaS 3rd party sensors Ongoing subscription fees Sensor data fusion & AI middleware Multi-domain integration Smart and connected sensors
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 39 Sensor data fusion and AI building blocks are in our portfolio today HENSOLDT CMD 2024 Kalaetron IntegralPEGASUS Spexer 2000FCAS TRS-4D/TRML-4DSETASCeretron Elysion Source: HENSOL DT AG. Existing sensor data fusion capabilities Existing artificial intelligence capabilities
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 40 Sensor data fusion and AI building blocks are in our portfolio today HENSOLDT CMD 2024 Source: HENSOL DT AG. TwinSens case study Fusion of dual-band surveillance data Increase survivability and accuracy Automation through Machine Learning and AI Cyber-hardened and jamming resistant Connectivity between remote sensors
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Our roadmap to software -centricity HENSOLDT CMD 2024 41 Source: HENSOL DT AG.Source: HENSOL DT AG. #oneSAPnow Focused self-funded R&D Customer-funded R&D Smart partnering Targeted M&A Portfolio digitalisation
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Exponential future growth, based on a strong foundation HENSOLDT CMD 2024 42 HENSOLDT today Service Provider Leading Sensor specialist Source: HENSOLDT AG. HENSOLDT 2030+ Diversified Services High value-added Smart & Connected Sensors Scaled & enhanced Multi-Domain Solutions Higher value chain positioning
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Lead our team into the future Lars Immisch, CHRO
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 44 Leading our teams into the future, based on six guiding principles HENSOLDT CMD 2024 Source: HENSOLDT AG Intrapreneurial spirit Continuous skills and competences development Meaningful mission Leading edge innovation challenges Modern workplace People-centric culture “Driving business success by positioning our people at the center of all we do.” Benchmark employee shareholdership ~64% 2021 2024 ~67% North Star Technology Summit FCAS Accelerator ARGUS Science Award TUM/HENSOLDT Innovation Program #oneHCMnow
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT is one of the most attractive employers in the defence industry HENSOLDT CMD 2024 45 For a productive, innovative diverse workforceContinuous skills & competences development 10% 25% 65% Mand atory Cross-Functional Functional Dedicated Development Offers: • System Engineering • connectTECH • Development Project Management • Leadership Source: HENSOLDT AG. (1) 2023. (2) 20 24. (3) Percentage of employees who woul d refer H EN SOLDT as an employer of choice +4 Development offers(2) 112k Training hours(1) 4.3/90% Kununu score(3) Refer a friend 79 2022 2023 114 2024 142 Dual Students and Apprenticeship 264 2023 2024 309 2025 338 from ~46 to ~44 yrs Average age 2017 - 2024 ~ 3.800 2017 2024 8.422
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 46 Case study: from individual to collective hiring HENSOLDT CMD 2024 Source: HENSOLDT AG Greater agility Positive societal & political impact Identify industrial targets/partners employing the relevant skills & competencies Check if transfer of skilled teams is possible (given the economic situation) Create a recruitment platform to engage with relevant teams/employees Create a multi-functional team internally to prepare move in/on-boarding Offer contracts to get maximum collective move avoiding TUPE transfer situation and execute on-boarding plan
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 47 Our sustainability strategy: a holistic approach HENSOLDT CMD 2024 Source: HENSOL DT AG. (1) Scope 1+2. 2) Against base 2020 b enchmark (1) Eco design guideline under develo pment (HEN Nexeya ) to be integrated already in the engineering phase, up co ming col laboration with Nexeya France and HENSOLDT Sensors planned InnovationReduce our climate impact Societal responsibility Compliance Diversity Actively contributes to the protection of democracies Corporate Citizenship Program 2035: carbon neutrality1 2030: - 60 % emissions1,2 Strict anti-corruption policy and Code of Conduct Be prepared against cyber attackers Promote green technologies1 Ensure responsible use of AI in HENSOLDT products 2023: 23% women in workforce 2030: >32% women in leadership team
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 30% 25% 15% 15% 15% 48 Use-case: sustainability links to executive pay HENSOLDT CMD 2024 Source: HENSOLDT AG LTI (2024-27) Relative TSR Order Intake Diversity Climate Impact Renewable Energies CO2 Emissions Reduction PMI ESG
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 49 Industry leading sustainability ratings across providers HENSOLDT CMD 2024 Source: HENSOL DT AG. Sustainalytics ESG rating based on ESG risk (exp osure & management) Scale: 0 (best) ⇔ 40 + (worst) We continuously strive to demonstrate our excellence and improve our performance Among Top 50% performers across all industries Above sector average in 2023 "AA" (leader) rating in 2024 1st in Aerospace & Defence industry Among top 15% globally across all sectors In 2024, HENSOLDT AG ranked: HENSOLDT Competitor B Competitor A 16.1 22.6 21.1 NEGLIGIBLE 0-10 LOW 10-20 MEDIUM 20-30 HIGH 30-40 SEVERE 40+ "Low Risk"
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. HENSOLDT Financials Christian Ladurner, CFO
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 9M 2024 results on track to deliver on our 2024 guidance HENSOLDT CMD 2024 51 Robust order backlogOrder intake in line with expectations Strong book-to-bill ratio Source: HENSOL DT AG. (1) Ad justed EBITDA / adjusted EBITDA margin excludes certain non -recurring items; (2) Core revenue is defi ned as revenues b efore pass -through. Strong adjusted EBITDA(1) resultExcellent revenue performance Solid adjusted EBITDA(1) margin (before p ass-through) € 1,856m € 6,513m 1.3x € 1,377m € 187m 14.6% Core revenue(2): €1,280m
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Short term guidance confirmed – medium term margin target raised HENSOLDT CMD 2024 52 (1) Average share of pass -through revenue o f total revenue was ~9% between 2020 A and 2023E; pass through share of total revenue is expected to be in the mid -single digit percentage range between 20 24E and 2026E. (2) Adjusted EBIT DA margin exclud ing certain special items relating to transactio n costs, OneSAPnow rel ated special items and other special items. (3) Adjusted F ree Cash Flow is d efined as free cash flo w excl uding certain spe cial items as we ll as M&A activities. (4) N et leverage includes l ease liabilities, but exclud es pensions. 2025 guidance2024 guidance Medium term target Adjusted EBITDA margin(2) Adjusted FCF(3) Net leverage(4) Book-to-bill ratio Revenue growth(1) Dividend ~1.2x Orders to grow significantly faster than revenue 10% average annual growth ~20% before pass-through revenue 50-60% average conversion on adjusted EBITDA further declining 30% - 40% of adjusted net income 30% - 40% of adjusted net income ≤2.0x ~50% average conversion on adjusted EBITDA ~18-19% before pass-through revenue ~€2.3bn With stronger growth in core revenue excl. pass-through Orders to grow significantly faster than revenue Low double-digit growth ~18-19% before pass-through revenue 50-60% average conversion on adjusted EBITDA ~ 1.6x 30% - 40% of adjusted net income
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Order backlog 2024E provides excellent visibility HENSOLDT CMD 2024 53 Revenue coverage 2025E – 2027E Source: HENSOLDT AG. (1) E.g. spares and service, including portio nof expected aftersales in pipeline; (2) New project business includ es pipeline; (3) Based on management estimates based on the exp ected conversio n o f order backlog and further expecte d ord ers int o revenue, as well as the expected recurring short -cycle and aftersales business 2025E 2026E 2027E ~86% revenue for 2025E covered(3) Firm order backlog Recurring short cycle and aftermarket business(1) New orders to be executed in the respective year(2)
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 54 ESG revenue and cost synergies ensure strong value creation HENSOLDT CMD 2024 EBITDA impact of €19m materializing EBITDA impact of €19m quantified On track and realized by 2028 Revenue synergies Significant potential Identified Realization starting 2025 Cost synergies Confirmed ~ €4m(1) to be achieved by FY24 Source: HENSOL DT AG. (1) Run -rate
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Clear trend towards a more international business profile HENSOLDT CMD 2024 55 Order intake2024E order backlog 2027E order backlog Revenue exposure from Germany will be reduced from ~60% 2024E to ~55% 2027E 67% 26% 8% ~ €6.5bn 60%21% 19% 56%29%14%2025E 51%27%22%2026E 53%21%26%2027E Revenue Rest of World Rest of Europe Germany 58%27%15%2025E 56%27%17%2026E 55%27%17%2027E Source: HENSOL DT AG.
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Structural growth in both segments HENSOLDT CMD 2024 56 Sensors segment - pass-through Sensors segment - Core Sensors segment - ESG Optronics segment 2022A 2023A 2024E 2025E 2026E 2027E Source: HENSOLDT AG Doubling revenues from 2022A to 2027E Revenue development 2022A – 2027E • Both, Sensors and Optronics segments contribute equally to our growth targets • Following recovery in 2024, Optronics growth momentum will further accelerate
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. R&D investment constantly growing HENSOLDT CMD 2024 57 Self-funded R&D constant while customer-funded R&D increases from 2020A ~8% to 2025E ~15% 0 100 200 300 400 500 600 700 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E Self-funded Customer-funded in m€ in % at average ~5% of revenue at average ~15% of revenue Source: HENSOLDT AG ~15% ~8%
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. Capital allocation framework HENSOLDT CMD 2024 58 Fund our transformation and growth M&ADividends Supporting growth profile by preserving a conservative financial debt profile
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 59 Key take aways HENSOLDT CMD 2024 Excellent visibility Highly profitable and cash generating growth Sustained technological leadership through innovation Sustainable, multi-vector long-term growth
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This document a nd its content is t he property of HENSOLDT AG. It shall not be communicated t o a ny third part y wit hout the owner’s w ritten consent . © Copyright HENSOLDT AG 2024. All r ights res erv ed. 60 Disclaimer HENSOLDT CMD 2024 Forward Looking Statement This presentation and the information contained herein are for information purposes only and should not be treated as investment advice or recommendation. It is not, and nothing in it should be construed as an offer for sale, or as a solicitation of an offer to purchase or subscribe to, any securities in any jurisdiction. Neither this presentation nor anything contained therein shall form the basis of, or be relied upon in connection with, any com mitment or contract whatsoever. This presentation does not constitute a prospectus in whole or in part. This presentation may not, at any time, be reproduced, distributed or published (in whole or in part) without p rior written consent of HENSOLDT. Any securities referred to herein have not been and will notbe registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the laws of any state of the U nited States, and may not be offered, sold or otherwise transferred in the U nited States absent registration or p ursuant to an available exem ption from registration under the Securities Act. Certain financial information including financial information as of and for the 9M period ended Sep tember 30, 2024 is unaudited. This presentation contains certain supplemental financial or op erative measures that are not calculated in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”) or any other generally accepted accounting principles, and are therefore considered non-IFRS measures. We believe that such non-IFRS measures, when considered in conjunction with (but not in lieu of) other m easures that are comp uted in accordance with IFRS, enhance the understanding of our business, results of operations, financial position or cash flows. There are, however, material limitations associated with the use of non-IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-IFRS measures used by us may differ from, and may not be comp arable to, similarly-titled m easures used by other companies. The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is m ade as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. HENSOLDT does not accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. This shall not, however, restrict or exclude or limit any duty or liability to a person under any ap plicable law or regulation of any jurisdiction which may not lawfully be disclaim ed (including in relation to fraudulent misrepresentation). The information contained in this presentation is p rovided as of the date of this p resentation and is subject to change without notice. This presentation may contain forward-looking statements about HENSOLDT and its businesses, including statements concerning its strategies, future growth potential of markets and products, profitability in specific areas, future product portfolio, and developm ent of and competition in economics and m arkets. These statements are based on the current views, expectations, assumptions and information of management, and are based on information currently available to management. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Any such forward-looking statements involve known and unknown risks which may cause actual results to differ significantly from any future results expressed or implied. While we believe that the assumptions made and the exp ectations reflected in today’s presentation are reasonable, no assurance can be given that such assumptions or expectations will prove to have been correct. The risks and uncertainties which these forward-looking statements may be subject to include (without lim itation) future market developments and the imp act of global and European social, political and economic events and developments, including the Russian war against the U kraine, as well as defence and security spending by governments, legal restrictions and controls applicable to sales of HENSOLDT’s products, including government ap proval req uirements and moratorium s, international conflicts and political developments affecting HENSOLDT, including by way of new export restrictions, trade barriers, or political support for competitors, HENSOLDT’s inclusion and p articipation in major defence projects and platforms and HENSOLDT’s com petitive situation. The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments. HENSOLDT’s public reports and p resentations are available via www.HENSOLDT.net