Rheinmetall Capital Markets Day Summary Company Overview - **Company**: Rheinmetall (OTCPK:RNMB.F) - **Event**: 2025 Capital Markets Day - **Date**: November 18, 2025 Key Industry Insights - **Defense Spending in Germany**: Germany is projected to increase its defense budget to EUR 180 billion by 2035, with a target of 3.5% of GDP allocated to defense spending [2][9][12] - **European Defense Dynamics**: Germany is positioned as the main driver of defense spending in Europe, with collaborative efforts to pool resources for ammunition and vehicles among European nations [2][3] - **Geopolitical Context**: The ongoing threat from Russia has heightened defense spending urgency, particularly among Eastern European nations [5][6] Core Company Strategies - **Expansion into New Domains**: Rheinmetall is diversifying its portfolio to include air, naval, and space technologies, alongside its traditional land defense capabilities [3][4] - **Digitization Focus**: The company is transitioning towards becoming a digital defense provider, emphasizing connectivity and digital solutions in military operations [13][25] - **Long-term Contracts**: Rheinmetall is actively pursuing long-term contracts with governments to ensure stable revenue streams and facilitate rapid production capabilities [11][33] Financial Projections - **Sales Growth**: Rheinmetall anticipates a sales growth rate of 35%-40% in the defense sector, with a target to reach EUR 50 billion in sales by 2030 [19][31] - **Operational Margins**: The operational margin for the defense sector is expected to approach 20% as civilian business is phased out [21][31] - **Backlog and Order Potential**: The company has a backlog of EUR 1.7 billion and a potential order index exceeding EUR 65 billion, indicating strong future demand [18][37] Investment Areas - **Defense Investments**: Planned investments include EUR 80 billion in ammunition, EUR 80 billion in naval capabilities, and significant allocations for air defense and digitization [12][30] - **Production Capabilities**: Rheinmetall is enhancing its production capabilities, with a fully automated production line capable of producing up to 500,000 shells and 350,000 full shots of ammunition per shift [20][28] Emerging Technologies - **Joint Ventures**: Rheinmetall is forming strategic partnerships, such as with Eisei for satellite technology, to enhance its capabilities in space and digital solutions [22][23] - **Air Defense Systems**: The company is developing cost-effective air defense systems that can protect critical infrastructure against drone attacks, with a focus on affordability compared to missile systems [47][49] Conclusion - **Long-term Vision**: Rheinmetall is committed to a 10-15 year growth strategy, focusing on expanding its product portfolio across all defense domains while ensuring profitability and operational efficiency [30][57] - **Market Positioning**: The company aims to solidify its position as a leading defense contractor in Europe, leveraging geopolitical dynamics and technological advancements to drive growth [38][56]

Core Viewpoint - Rheinmetall is targeting sales of approximately 50 billion euros ($58.01 billion) and an operating margin exceeding 20% by 2030, driven by Europe's renewed focus on defense [1] Company Summary - Rheinmetall has experienced significant growth due to increased interest in defense within Europe [1] - The company is setting ambitious financial targets for the next decade, indicating strong confidence in market demand and operational capabilities [1] Industry Summary - The defense sector in Europe is witnessing a resurgence, which is positively impacting companies like Rheinmetall [1] - The projected sales and operating margin targets reflect broader trends in defense spending and investment in military capabilities across Europe [1]

CLOSING GAPS OUR VISION 2030 Armin Papperger, CEO CAPITAL MARKETS DAY – 18. November 2025 © Rheinmetall AG I 25. September 2025 CLOSING GAPS Expansion is the common denominator Expansion across the portfolio ▪ Vehicle Systems ▪ Weapon and Ammunition ▪ Air Defence ▪ Digital ▪ Naval Expansion into ▪ Air ▪ Space ▪ Naval Become the largest European fighting force ▪ ReBuild ▪ ReArm ▪ ReEquip Dramatic spending increase ▪ NATO target of 5%* by 2035 ▪ Germany 3.5% by 2029 30 years underspending Capabilities Capacit ...

By Christopher Gannatti, CFA, Global Head of Research; and Samuel Rines, Macro Strategist, Model Portfolios Key Takeaways Europe's rearmament isn't just about ordering more kit; it's about fixing the bottlenecks that make a credible deterrent possible: ammunition at scale, sensors that see first and systems that keep fleets moving. Three German champions, Rheinmetall, HENSOLDT and RENK, sit at the core of that effort. Together they're rebuilding depth (stocks), sharpening edge (effects) and hardening re ...

Core Insights - Europe is experiencing a significant increase in defense spending, with many NATO member countries pledging to allocate up to 5% of their GDP to national security in the coming years [1] - The newly launched WisdomTree Europe Defense Fund (WDEF) is positioned to benefit from this trend, focusing on European defense expenditures with long-term growth potential [2] Group 1: Fund Composition and Holdings - WDEF includes key holdings such as Rheinmetall, HENSOLDT, and RENK, which collectively represent about 18% of the ETF's portfolio [2] - Rheinmetall is a major component of WDEF, accounting for over 10% of the ETF, and is expected to be a significant contributor to its long-term performance [3] Group 2: Strategic Investments - Rheinmetall is investing over €1 billion in a joint venture in Bulgaria to localize gunpowder and shell production, alongside an ammunition project in Romania, enhancing Europe's defense supply chain resilience [4] - HENSOLDT is described as Europe's sensor backbone, providing essential radar and electronic warfare capabilities that are crucial for modern military operations [5] Group 3: Market Positioning - The renewed focus on defense spending in Europe presents challenges for single stock investors in the U.S., but WDEF offers a diversified investment solution to capitalize on this theme [6]

Core Insights - Defense companies in Europe face challenges, including the uncertainty of projected increases in military spending [1] - Despite these challenges, Europe is significantly behind in military capabilities and is attempting to catch up on a large scale [1]

Core Insights - Global equity markets experienced significant growth in Q3, with the S&P 500 rising 8.12% for the quarter and 14.83% year-to-date, while the MSCI EAFE Index increased by 4.77% for the quarter and 25.14% year-to-date [2][3] Market Performance - The S&P 500 achieved back-to-back annual returns of 26% and 25% in 2023 and 2024, respectively, with valuation metrics like the "Buffett Indicator" and CAPE-Shiller P/E at or near record highs [2] - Non-US equities, particularly European stocks, outperformed the S&P 500 year-to-date, benefiting from a weaker US dollar and a resurgence in value recognition [3][11] Fund Performance - Tweedy, Browne Funds reported year-to-date returns ranging from 15.98% for the Value Fund to 23.17% for the International Value Fund II, with the Worldwide High Dividend Yield Value Fund outperforming its benchmark [3][5] - The International Value Fund II had a return of 23.17%, trailing its benchmark, the unhedged MSCI EAFE Index, by 197 basis points [3] Portfolio Activity - The company made strategic adjustments to its portfolio, trimming or selling holdings that reached estimated value and adding to companies perceived as attractively priced, such as Berkeley Group Holdings and Breedon Group [8] - New positions were initiated in Santec Holdings and additional investments were made in companies like Dentium and Azelis Group, reflecting a focus on growth potential and reasonable valuations [8] Outlook - The company is optimistic about the resurgence of non-US equity returns and believes its funds are well-positioned for future market conditions, whether they favor non-US equities or face broader market challenges [11]

European stocks settled lower on Thursday as investors reacted to a slew of earnings announcements and economic data, in addition to digesting the Bank of England's interest rate decision. Weak cues from Wall Street where stocks tumbled amid concerns about stretched valuations in the tech sector weighed as well on investor sentiment.The BoE decided to hold the interest rate in a tight vote and signaled that the rate will follow a gradual downward path if disinflation process continues.BoE's Monetary Policy ...

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Market Trends & Global Economy - Asian stocks rebounded, tracking Wall Street's gains, with dip buyers capitalizing on tech weakness [1][7] - Uncertainty surrounds potential limits on President Trump's global tariff agenda by the U S Supreme Court [1][18] - The U S government shutdown, now at 37 days, is impacting flights and raising concerns about economic consequences [22][23][24] Bank of England (BOE) Rate Decision - The Bank of England is likely to hold interest rates steady at 4%, ending a series of quarterly reductions [11] - Analysts anticipate a split decision on rates, possibly 6-3, hinging on Governor Andrew Bailey's stance [12] - Focus is on how long the hold will last and how the Governor characterizes the 3 8% inflation rate [15] Commerzbank Performance & Strategy - Commerzbank's third-quarter revenue slightly missed estimates at 2 5 billion euros, but net interest income reached 8 2 billion euros [2][3] - The bank raised its outlook for full-year net income to approximately 2 5 billion euros [3] - Commerzbank is initiating a 600 million euro share buyback program and is open to discussing potential combinations with UniCredit, provided a formal proposal is presented [74][76] Zurich Insurance Financials - Zurich Insurance's gross written premiums in its Property and Casualty (P&C) unit increased by 8% to a record 39 billion in the first nine months of the year, while Life and Health premiums rose by 11% [28][30] - The company is confident in achieving its financial targets, including an EPS compound growth above 9% over the three-year period and an ROE illustrating above 23% [35][36] - Zurich Insurance remains strategically interested in offloading a $20 billion book, despite a previous deal falling through due to regulatory issues [40][42] Technology & AI - Pony AI CEO discussed the company's global footprint in robotaxi services, with a focus on regulatory progress in the Middle East, particularly the UAE [43][45] - Pony AI has deprioritized commercialization in the U S due to geopolitical concerns and data-related issues, pausing plans for now [46] - A German AI language platform, seen as a rival to Google Translate, has unveiled new AI tools for office efficiency and is considering a potential IPO [57][58][64] Other Company Earnings - Continental's third-quarter adjusted earnings decreased by 15% year-on-year to 555 million euros, with a softer margin story [51][52] - Rheinmetall, a key player in the defense sector, reported operating profit up almost 20% year-on-year to 835 million euros for the first nine months, confirming its 2025 outlook [52][54]