Slides
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Propelling Rheinmetall to the all-domain level Acquisition of Naval Vessels Lürssen B.V. & Co. KG Armin Papperger, CEO September 15th 2025
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Naval business identified as a growth area due to the increasing strategic relevance of the maritime sector 2 © Rheinmetall AG I September 2025 Space Land Naval Air Significance of the naval domain for current and future conflicts has increased, particularly in the Baltic Sea, the Middle East, and the Indo-Pacific theater. Rheinmetall aims to participate in the ambition of the alliance to strengthen its naval defence capabilities by 2030 Acquisition is a major consolidation move and complements Rheinmetall’s portfolio
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17Acquisition Summary4 14Strategic Rational3 8Company Overview2 4Market Dynamics1 Agenda 3 © Rheinmetall AG I September 2025
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17Acquisition Summary4 14Strategic Rational3 8Company Overview2 4Market Dynamics1 Agenda 4 © Rheinmetall AG I September 2025
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Market Dynamics First draft budget suggests high navy investment needs 5 © Rheinmetall AG I September 2025 Vessel programs ~31€bn Weapon & Ammunition ~18€bn Miscellaneous ~4bn Based on current German draft budget and financial plan More than 20% of the total German draft commitment appropriations* are aiming to strengthen the German navy’s defence readiness over the next decade *Verpflichtungsermächtigung Until 2035 Until 2029 >1€bn ~9€bn ~1€bn
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6 © Rheinmetall AG I September 20256 FRIGATE AUXILLIARY VESSELCORVETTE PATROL VESSELS AMPHIBIOUS SHIP INDICATIVE RELEVANT MARKET POTENTIAL Accumulated 2025-2035 (in USD bn) Source: Global Data 2025, internal estimates MINE COUNTERM. SHIP* DESTROYER UNMANNED SURFACE VESSEL* *period deviating Current Portfolio NVL Potential Portfolio Extension Market Dynamics Positive international market outlook for NVL-relevant vessel categories ~60bn ~70bn ~20bn ~20bn ~15bn ~30bn ~10bn ~10bn ~20bn ~50bn ~20bn ~100bn+ ~10bn ~30bn ~6bn ~10bn Relevant European Target Markets Other International Target Markets incl. USA
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7 © Rheinmetall AG I September 20257 Market Dynamics Rheinmetall’s network to unlock international market potential ▪ USA lack shipyard capacities – offering additional potential together with partners ▪ Leverage existing network for further internationalisation USA ▪ Potential high demand especially for corvettes and smaller ship classes ▪ NVL has not made strong marketing efforts in the region in the past Middle East ▪ Indonesia, Singapore, New Zealand and further countries with strong demand not only by navies but also coast guards APAC ▪ Germany, Italy, Greece and Turkey as most promising markets ▪ Potential joint European programs, especially led by Germany Europe
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17Acquisition Summary4 14Strategic Rational3 8Company Overview2 4Market Dynamics1 Agenda 8 © Rheinmetall AG I September 2025
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Company Overview Family owned-business with focused portfolio, strong team and solid outlook 9 © Rheinmetall AG I September 2025 ▪ Naval Vessels Lürssen B.V. & Co. KG (NVL) is a well- established, German ship builder with refit & repair business ▪ 145+-year history as a Defence group under the umbrella of the family-owned Lürssen Group ▪ NVL was setup independently from Lürssen Yachts in 2021 Key capabilities – New Build, Refit & Repair and Services for… Current backlog > €5bn ~2,100 current employees ~€1bn sales with ~30% service share 1,000+ vessels delivered to 50+ different navies and coastguards Profitability above naval industry average Frigates Patrol Boats Corvettes Supply Vessels Offshore Patrol Vessels Minesweeper Units Program # vessels Corvettes | K130 5 SIGINT | Flottendienstboot 424 3 Frigates | F126 4+2 Further International Orders 10+ 2024 unaudited financial data
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Company Overview Strong German footprint and strategic international hubs 10 © Rheinmetall AG I September 2025 3 1 2 International Locations ▪ Croatia, Bulgaria, Egypt, Singapore and Brunei 4 Peene-Werft, Wolgast ▪ 250.000qm shipyard area ▪ 1 dry dock, 1 ship lift ▪ 950m waterfront 4 Blohm + Voss, Hamburg ▪ 451.000qm shipyard area ▪ 7 docks ▪ 2.100m waterfront 1 Norderwerft, Hamburg ▪ 60.000qm shipyard area ▪ 3 floating docks ▪ 450m waterfront 2 Neue Jadewerft, Wilhelmshaven ▪ 40.000qm area ▪ 2 floating docks ▪ 440m waterfront 3
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Company Overview Systems house concept to generate profitable growth in line with RHM targets 11 © Rheinmetall AG I September 2025 Significant potential to scale both revenues and profitability by… ~€1.3bn ~€5.0bn +~10% >15% NVL Revenue 2025 E* … Revenue Potential Rheinmetall Naval 2030+ EBIT Margin ~€3.0bn+ Core German market growth Additional international naval potential …capturing extensive workshare in future naval programs with solutions from sensors to effectors by Rheinmetall and its partners, which would allow to ▪ capture a greater share of total program revenues, and ▪ drive the product mix toward the higher-margin electronic systems …securing prime contractor positions in additional programs …international expansion targeting European, US, and APAC markets ▪ Especially well-positioned due to planned network of partnerships …further organic growth in the German market *2025 expectations
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Company Overview NVL already delivers above industry average profitability 12 © Rheinmetall AG I September 2025 2024 EBIT margins of key European navy players …very well-structured operations , focused on efficiency and delivery …a proprietary high-performance project management system …clear focus on surface vessels NVL has distinguished itself by... Median ~6% NVL* TKMS (FYE Sep-2024) BAE Maritime Fincantieri Navantia Naval Group Damen (FY 2023) ~10% ~6% ~8% ~3% Negativ ~7% ~2% *2025 expectations
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Company Overview Replication of system house approach creates new margin potential 13 © Rheinmetall AG I September 2025 Sources: internal estimates, expert views Ship / Hull Construction Combat Management Systems & Communications Sensors & Radars Weapons Systems Other (e.g. training, simulation) ~15-25%~25-40% of program revenues ~15-25% ~10-20% ~0-10% >20%>12% INDICATIVE margin potential >20% >15% >20% NVL with focus on shipbuilding; System house approach expected to improve margins materially! Rheinmetall + Partners future playing fieldNVL current playing field
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17Acquisition Summary4 14Strategic Rational3 8Company Overview2 4Market Dynamics1 Agenda 14 © Rheinmetall AG I September 2025
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Strategic rational Rheinmetall to become a partner 15 © Rheinmetall AG I September 2025 Rheinmetall to become a systems house provider in the naval domainAccess the naval domain Establishment of a comprehensive, German naval heavyweight that combines shipbuilding with Rheinmetall‘s effector and electronics competencies as well as a strong partnership network Unprecedented German naval powerhouse Opportunity to expand Rheinmetall‘s industrial base in Northern Germany to further support the production of the Vehicle Systems divisions based on material and technology competencies Expand capacities Above industry average profitability combined with excellent project management skills Outstanding market position
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▪ NVL existing competencies combined with Rheinmetall‘s portfolio and partner networks has the potential to create a hub for surface vessels ▪ Integrated system house approach offers potential for ▪ Main and secondary marine guns ▪ Missile defence ▪ Sensors and components for sensors ▪ Battle management systems ▪ Miscellaneous electronical components ▪ Using NVL’s capabilities, capacities and infrastructure to support Rheinmetall’s Vehicle Systems, e.g.: ▪ Welding ▪ Coating ▪ Piping ▪ Cutting ▪ Significant capex savings to prepare for necessary capacity expansion especially in the tactical vehicles Strategic rational Two pillars for future value creation 16 © Rheinmetall AG I September 2025 Building a German navy hub Infrastructure & Capacities
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17Acquisition Summary4 14Strategic Rational3 8Company Overview2 4Market Dynamics1 Agenda 17 © Rheinmetall AG I September 2025
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Acquisition Summary Closing the circle – all domains under the Rheinmetall umbrella 18 © Rheinmetall AG I September 2025 ▪ Rheinmetall acquires 100% of privately owned Naval Vessels Lürssen B.V. & Co. KG, Bremen ▪ Creation of new naval business segment Transaction ▪ Unique asset to enter the naval business with high growth potential ▪ Two pillar approach for value creation ▪ Experienced and highly skilled workforce Rationale ▪ Detailed financing structure to be finalized until closing depending on prevailing market conditionsFinancing ▪ Parties agreed to the transaction September 14th 2025 ▪ Closing expected latest beginning of 2026 pending regulatory approval in several jurisdictions Timeline
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Disclaimer 20 © Rheinmetall AG I September 2025 This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of1995 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 RheinmetallAG 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.