Rheinmetall AG Chief Executive Officer Armin Papperger is making a fresh pitch to buy part of rival KNDS NV and create a European land defence company that would consolidate the continent's fragmented... ...

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 ...

Core Viewpoint - BAE Systems, Britain's largest defense company, anticipates growth in operating profit driven by sustained demand, particularly from Turkey for Typhoon aircraft and Norway for Type 26 frigates [1] Group 1 - The company reported strong order inflows, indicating robust market demand [1] - Orders from Turkey and Norway are significant contributors to the company's positive outlook [1] - The forecast for growth in operating profit reflects confidence in the defense sector's resilience [1]

Group 1 - Lithuania is in discussions with German defense conglomerate Rheinmetall for a second investment project [1]

Core Insights - Larsen & Toubro (L&T) has formed a strategic partnership with General Atomics Aeronautical Systems (GA-ASI) to manufacture Medium Altitude Long Endurance (MALE) remotely piloted aircraft systems in India for the armed forces [1][2] - L&T will act as the prime bidder for the Ministry of Defence's procurement of 87 MALE RPAS units, with GA-ASI providing technology support [2] - The collaboration aims to enhance India's self-reliance in defense manufacturing and aligns with the government's Atmanirbhar Bharat and Make in India initiatives [2][4] Company Overview - L&T is a $30 billion Indian multinational with a strong presence in engineering and precision manufacturing within the defense and aerospace sectors [4] - The company has maintained leadership positions in its core businesses for eight decades [4] Industry Impact - The partnership signifies a notable expansion of Indo-US defense cooperation and is expected to strengthen India's defense manufacturing ecosystem [4][5] - GA-ASI has extensive experience in unmanned aerial systems, with its Predator line having completed over 9 million flight hours globally [3]

Core Viewpoint - PST Group has secured a €141 million contract for the construction of a defence factory in Lithuania, marking the largest investment in the country's defence industry history [1] Project Overview - The factory complex will be established on a 340-hectare site in Kemėrai village, focusing on the production of tens of thousands of 155 mm caliber artillery ammunition annually [2] Strategic Importance - This project is crucial for enhancing Europe's ammunition production capacity and has been granted special status by the Lithuanian Government in 2024, recognizing it as essential for state security and defence needs [3] Responsible Approach - The CEO of PST Group emphasized the project's significance for national and European security, highlighting the company's experience in industrial construction and commitment to quality and sustainability. The Rheinmetall project contributes to a broader portfolio exceeding €400 million [4] Construction Plans - Construction is set to commence in October 2025, with the completion of the factory complex anticipated by the end of 2026 [5]

Core Points - Bulgaria and Rheinmetall have finalized a deal exceeding 1 billion euros (approximately $1.2 billion) for the establishment of a manufacturing plant [1] Group 1 - The deal will focus on the production of gunpowder and 155-mm artillery shells [1]

Core Insights - Critical Infrastructure Technologies Ltd. (CiTech) has signed a Non-Disclosure Agreement (NDA) with H. Cegielski – Poznań S.A. (HCP), a subsidiary of Polska Grupa Zbrojeniowa S.A. (PGZ), to facilitate the exchange of confidential information related to the manufacture of CiTech's Nexus Tower [1][2] - This collaboration is a significant step in CiTech's strategy for European industrial expansion, aiming to establish localized manufacturing and engineering partnerships across Europe [3] - The Nexus Tower Project involves the design and production of a 20-meter autonomous, relocatable tower system for rapid deployment in communications, surveillance, and integrated mission systems [4] Company Overview - CiTech is focused on developing autonomous, high-capacity mobile communications and security platforms, targeting sectors such as mining, defense, border security, and emergency services [8] - The company has completed the research and development phase of its first product, the Nexus 16, which aims to provide critical mobile telecommunications [8] - HCP, founded in 1846, specializes in large-scale mechanical manufacturing and defense production, making it a suitable partner for CiTech's Nexus Tower program [6]

Group 1 - The Unite union in Britain announced that its members are initiating strike action at BAE Systems' Warton and Samlesbury sites [1] - The strike action follows the rejection of a 3.6% pay offer, which the union characterized as inadequate [1]

Core Viewpoint - TKMS, the defense division to be spun off by Thyssenkrupp, aims for a payout ratio of 30% to 50% of net profit and plans to distribute its first dividend to shareholders in 2027 [1] Financial Strategy - The planned payout ratio indicates a commitment to returning value to shareholders while maintaining a portion of profits for reinvestment [1] - The timeline for the first dividend distribution in 2027 suggests a long-term growth strategy focused on stabilizing the business post-spin-off [1]