Thank you very much. Good afternoon.

I start with page number 3, and I welcome you to the full year call of the Rheinmetall Group. The year 2025 was a good year for Rheinmetall.

We had smaller impact from the ammunition side because of the accident that we had in Murcia. I think with nearly €10 billion sales, it's a good year.

The operating result is growing 33% to €1.841 billion, and the operating margin is growing up to 18.5%. Important is to understand that we no longer have our civilian business into that figures, we reduced about €2 billion on sales.

Also, on the headcount side, we are now without [naval?] and without the civilian business on 29,000 people.

Very positive, we see the operational free cash flow. Even if we had this strong growth of nearly 30% on the defense side, we had an operational free cash flow of €1.218 billion, which is a plus of 15% in comparison to last year.

CapEx is on a level of 7.8%. That's important because we continue to grow, as you know.

We invest into all these factories to build up the capacities. On the nomination side, we have a delay this year in '26 will be there is something swapped into '26.

Still, the Rheinmetall nomination growth was 9% to €26.44 billion. The Rheinmetall backlog is and we also reduced the backlog from the civilian side.

It's about €8 billion that we reduced on a level of nearly €64 billion, a plus of 36%. All that is now inside.

Let's go to the next slide. On the next slide, we see only some words about the macro highlights.

This is very clear that we have a disruption of the geopolitical order with the new conflict from the Iranian side. Also, the whole Middle East, oil price and all the things are under shock.

On the next page, you see what is the impact for Rheinmetall. Slide number 5 shows that the attacks from the Iranians is going to a lot of countries in Middle East, and all, or nearly all that countries, have Rheinmetall air defense systems.

They are very successful, and they fight very successful against drones. The Oerlikon twin gun, the Millennium gun, and the Oerlikon revolver gun is in all that countries.

We expect strong orders over the next months because over the last 5, 6 days, this countries asked us if we are able to deliver fast more of our systems. The reason is that in the first 72 hours, the US and the allies of the US, they expended 2,000 munitions, and the cost of that was €4 billion, about €4 billion.

These are official numbers. If you see how strong are the stocks of this air defense munitions is that over a period of next 2, 3, or 4 weeks, if the conflict continues like it would be over the first 2 or 3 days, the stocks should be empty.

We need, and that's the reason that we developed our Skyguard, Skynex, and our air defense systems, that we are able, if we use five rounds to fight with $5,000 against a Shahed drone, which has a price between $20,000, $30,000 up to $50,000 maximum dollar. The missile cost is between $500,000 and $3 million.

There are two drivers on business for us. One is our air defense systems where we believe that we have huge opportunities.

On the other side is to fill up the gaps of missiles, and with our new missile production line, I think we have huge opportunities also for new contracts. If you have a look now to page number 6, here you see the macro view.

On the geopolitics, you see the increase of tensions, very clear. I must not say about that.

We have to drive the European sovereignty. These are the two drivers on the geopolitical side.

On the financing side is the German budgets. These are the €100 billion.

There are also the €500 billion, which are coming up. Safe money of €150 billion, safe two in discussion.

As NATO target, not all the NATO countries will fulfill it, of 3.5% on core defense and 1.5% on infrastructure. Rheinmetall will have in both areas, on the core defense and on the infrastructure, some projects.

That is the reason that we expect that there is a potential this year of €80 billion on orders. We are not in time on the order side.

There is a delay from the customer side. It's not from our side.

It's mostly because the capacity on the customer side are limited. At the moment, there are only smaller delays.

There is nothing canceled, and there is nothing at the moment in danger, and that's positive. What is on the Rheinmetall side in preparation?

On one side, for sure, we have to build up the capacities. We do that, and we are in line with that what we always told on the capacity side.

The same is on the people, recruitments. More than 300,000 CVs came in.

On the supply chain, we have a stable supply chain, but we have to grow up the supply chain with a second and a third source to be more stable also in the future. At the moment, no big problems, absolutely no big problems on the supply chain side.

That's the reason that the CAGR is on around 35% over the years and also over the next years. What are the next highlights?

We have now all domains under one roof. This is what you see on page number 7.

The reason that we acquired naval systems are, on one side, naval will be a big business only in Germany over the next years, 10 years, the expectation is that the German Navy has to spend nearly about €80 billion for naval systems. The second point is that we want to implement the naval systems into our digitization family, and therefore, you need platforms.

Number 3 is that we on the naval system side are able, like on ammunition and vehicles, to do a vertical integration, create also internally in Rheinmetall more value, and to be able, like on ammunition, also to enlarge the profitability on the naval business. We took over nine sites, about 2,100 employees in that areas, and I'm very happy to have these people on board because very well-educated people.

The backlog between €5 billion and €6 billion, and decisions that we expect this year for F126 and F127, which are a potential of, I think, more than €12 billion order in '26. Let's have a look to page number 8.

Here, you see what we did in last year and what we want to build up the capacities. As most of the capacity build up already in '27.

In '26 is a very important year. We are in time.

Capacity ramp-up from the artillery lines, the capacity enlargement in Spain is ready. The capacity enlargement in Unterlüß is on a good way.

We expect that we are able to produce about 140,000 rounds in Unterlüß this year because of the ramp-up curve. Next year, we grow to 250, and then to the maximum capacity of 350,000 rounds.

Murcia is back on track. We are now in full production also on powder and green and white bags.

The rocket artillery starts in Q1 '27 with qualification, so that over the year '27, our product should be qualified so that the sales will come in '28, the first bigger sales. On the vehicle side, we have to optimize the production cycles.

We were very successful in this area. We reduced the production cycles a lot.

The level of automation is a very important thing to come forward in this areas. We recruit a good workforce and which are good.

We have no problems about that. We are ready on the truck side.

The capacity is still there on 4,500 infantry trucks. Infantry fighting vehicles and APCs, we are on a level of 1,000.

Air defense, the €3 billion backlog on the air defense, we have to bring into sales. We prepare an additional factory for that with 100 new air defense systems here in Germany in Neuss, 150 in Switzerland, and 150 in Italy.

Then we will grow up to 400 systems. On the digital systems, it's people, people, people because of the algorithms.

More than 400 software engineers now on board. The integration of Blackned, which is very important also for DLBO, worked.

The initial Taiwan demo was successful and was completed. Is it easy to handle all these projects?

No, it is not. On the other side, we are on a very good way also together with the customers to bring it into the right direction.

Next page is page number 9. You see that we built up partnerships also for huge contracts on the space side.

As Minister Pistorius gave very clear order. We need a total budget at least of €35 billion for the satellites.

The first SAR contract of €1.7 billion plus nearly €1 billion option is signed. We created a joint venture, and we are on the way.

It's still not signed, but on the way to create this joint venture with OHB, a partnership with our German partner. On the communication side, there is a potential of at least €8 billion to €10 billion.

Up to 200 satellites, communication satellites, are expected that we have to bring into space up to 2029. If you have a look now to the next page, you see that the Rheinmetall drones and by the way, we produced drones since 25 years.

This is always an interesting story. If you see that Rheinmetall is a newcomer in drone production, I think we were one of the first producers of drones.

We fired in front of the German customers these drones. As the Germans want to have a pure German solution.

We fired more than 1 year ago our German-Israeli solution, but now we have a full qualified German solution. The firing tests were fine, and also the digital tests were fine.

We had 100% accuracy hit rate in this area. We see a total order potential, as because the German Bundestag limited it to €1 billion, but this is for us, I see only the starting point.

We build up a capacity on the drone side here in Neuss, but also in Italy, a capacity up to 40,000 drones per year. How is it scalable?

Very easy. The point is you need the warhead.

The most critical thing is the warhead and the booster to push out the points because this is like a small missile. We have that under control because we produce it by ourself.

Electronics and the structural parts is not a bottleneck. We have the gimbals, which are also there, which is also a unique USP from our side.

With the gimbals, you can over a period of 70 minutes make also to create a reconnaissance drone, even if you fight or if you don't want to fight, a USP which has Rheinmetall. Another USP is the warhead.

We have a 6 kg payload warhead on that, and this has a very, very good penetration rate. I can say not comparable to other drone producers.

We see it very positive, and it could be medium- and long-term a good business also for Rheinmetall, and we are prepared. Now, I take over to my colleague, Klaus Neumann.

Klaus will show you now the financials.

Thank you, Armin. Let's turn to page number 12.

Just to give you some more detail and background on the development on our sales and operating margin. It's quite important that a large part of our growth in 2025 of 29% was basically organic, was coming from the development of our existing businesses.

About half a billion was contributed from acquisition, mainly from the acquisition of Loc Performance that we acquired late in 2024. Our operating results increased by 33% to €1.8 billion, resulting in an operating margin of 18.5%.

Again, the growth of the result and the performance came from primarily existing businesses. We had some smaller downward impacts on the FX on sales and smaller on results, mainly from the US dollar exchange rate as the dollar deteriorated over the year of 2025.

Let's turn to page number 13 to look deeper into the performance of the different segments in our business. The strongest growth in percentage-wise was from Electronic Solutions at 45%.

The business grew from €1.7 billion to €2.5 billion, at the same time increasing the profitability to 14.6%. That is an improvement of 2 percentage points from the 2024 level of 12.6%.

Vehicle Systems grew by almost more than €1 billion. This growth was basically pushed by the contribution from Loc Performance.

Also that business improved its profitability from 11.2% to 11.7%. The main drivers that contributed to the sales in 2025 were the tactical vehicle programs in our different locations.

Also, we had a strong contribution from the logistical vehicles. The increase and the growth of Weapon and Ammunition at 27% in 2025 was very strong, considering that the growth was basically limited by the issue that we had at our site in Murcia as discussed throughout the year that basically reduced the sales number by more than €200 million in 2025.

If you look at that, then the growth would have been even stronger than the 27% that we are reporting for 2025. At the same time, profitability increased to 29.3%, and the division, for the first time, basically generated an operating result of more than €1 billion.

Overall, our group increased the sales by, as mentioned, 29%. One comment to the consolidation line, we had a positive contribution in 2024.

There is no otherwise strong change in the numbers compared to 2024. Let's move to page number 14.

As a result of our increase in profitability and our performance, also the earnings per share increased significantly to €25.28 per share. We had also some impact from the strong performance of some of our business with minorities, primarily in South Africa and the vehicle business via our joint venture with MAN.

As a result of our strong performance in 2025, together with the Supervisory Board, we are proposing a dividend of €11.5 to the Annual General Meeting in May. Let's move on to page number 15.

As mentioned, all the numbers that we are discussing do not include any contribution from our automotive business. As we decided in mid-December to finally go the next and final step of the disposal process.

From that moment onwards, we are reporting that business as a discontinued operation. I think it's quite helpful just to show what the numbers would have looked like if we had continued including the business in our numbers.

At our Rheinmetall backlog number, we would have reached about €70 billion at the end of 2025. On sales would have reached or have reached, including those numbers, €12 billion.

The operating result, including the contribution from the Power Systems business, went up to €1.9 billion, equaling a profitability of 16% compared to the €12 billion sales number. Let's move to page number 16.

This gives some context on our development of our nomination and also our backlog. As in the previous year, our book-to-bill ratio was in excess of 200%.

The nomination of €26 billion, excluding any numbers from the Power Systems business, included €20 billion of fixed orders. That was kind of important and basis for our growth in the coming years that contributed to an order backlog of €64 billion by the end of 2025.

Out of the €64 billion of backlog, €41 billion are fixed orders. Let's move to page number 17.

Just to go a little bit deeper in our cash flow numbers. As in many other years, we have very different quarters in terms of the cash generation.

2025 was no different. In Q4, we saw the biggest positive cash flow of the year, exceeding €2 billion in this 3 months alone, contributing significantly to the €1.2 billion generated through the continuing businesses in the year 2025.

One key driver for the positive cash flow in Q4 were a good negotiation or successful negotiations with our customers that agreed to substantial advance and early payments from new orders. When you look at the right side, the development of the working capital, you can see that, basically, the €1 billion build-up of inventory that we need to produce the orders in 2026 and the following years was mainly funded through prepayments from the customers.

The customer contributed €1.2 billion to our working capital improvement. At the end of 2025, operating working capital for the business was just under €500 million.

Let's turn to page 18 just to give you an update on our financial position. That financial position was positively impacted by the cash flow as explained before, but we also had a good contribution from our convertible that was converted throughout 2025.

There were further conversions in 2026. By the end of February 2026, 83% of the series B convertibles were converted.

Series A had already been fully converted in 2025. That also improved our equity ratio that now stands at 33.5% at the end of 2025.

The strong balance sheet and our good liquidity position that, for the first time, basically, was positive at the end of the year is a good basis for the acquisitions that we did at the end of February when we acquired the naval business. Even after that acquisition, our balance sheet is strong to continue basically a growth path where we are able to also acquire businesses when it fits into our strategy and portfolio.

With these comments, I hand over back to Armin for the outlook of our business.

Thank you, Klaus. Page number 20 shows us now the nearly €64 billion backlog without automotive.

Then there is an NVL impact, the Rheinmetall naval business, €5 billion to €6 billion backlog, and we expect nominations of minimum €12 billion. Then there is Rheinmetall nomination from the German side, where the biggest piece, for sure, is Boxer.

I will come on the next page on the details, but also ammunition, armored vehicles like the Puma, trucks, etc. So, €55 billion.

As I said, some of this business stepped from '25 to '26, but it doesn't matter. It's only a delay.

For us, it doesn't matter. On the Romanian side, Italy, and Ukraine, you see the international business where we have an opportunity of around €16 billion, and the exact timing, if it is coming in Q2 or if it is coming in Q3, for example, the big contract on the Boxer and also the ammunition contracts, we hope that we can do as much as possible in the second quarter.

If it is coming into the third quarter, it's, I think, also okay because there is no influence about the sales. On the sales side, the €14 billion to €14.5 billion, we have a coverage rate from 91%, so that nearly everything is inside the books that we need, and especially service business, business for chemical stuff, etc., etc., is still not in, so that the coverage is nearly 100%.

It should be relatively safe to get this sales, which is then 100% defense sales. Then the backlog in the end of '26, there is a potential to get €135 billion.

If you have now on the next slide, slide 21, a view on the biggest program at the moment that we are in negotiations, this is the Boxer program or the Arminius program, how the customer calls it. There is for Rheinmetall a total potential of €38 billion, where the €12.5 billion in Q2 or Q3 is expected as a fixed order, and this fixed order is also expected with down payments.

This is the driver for operational free cash flow, and this is also the driver, the big driver, for the order intakes. Ammunition, trucks is always multi-billions contract on top, but the real big beast is the project Arminius.

You see the different variants. You have variants from Schakal on the left side to the air defense Boxer, then Flugabwehr Boxer, which has a lot of different variants, which is a long, long-term program, at least to 2035.

In our discussions, we are up to 2040. If you have a look to the next page, it's page number 22.

There is a new business, and this new business could grow very strong also. This is the service business on defense to handle ammunition.

As it's not easy to do it because you need the rules and regulations to handles also weapon systems and to bring different systems from the western part of Europe to the eastern part of Europe. This is with infrastructure, with logistics, a big opportunity with an order potential over the next years.

Maybe the first contract, it's a smaller one, €200 million to €300 million, could come in April. If it is a frame contract, it could grow up to €7 billion.

Now, from the service side, let's go to the DLBO side. We try to step deeper inside because that's a very important program for Rheinmetall, but not only for us, also for Bundeswehr.

What are the interface points? The first point is that the Army has to give us the vehicles.

This is the first interface point. Why?

Because we have all these vehicles at the moment in service, they have to take it out of service. They have to give it to us.

Then, first of all, there is an hardware retrofitting for radios, monitors, servers, and etc., etc. We are at the moment on the Rheinmetall side on a level of I would say 95% to be ready.

We are not on 100% level, but 95% is fine. The second point is then to integrate the software.

On the software side, Rheinmetall has a very important role because Rheinmetall has the so-called tactical core. In the tactical core, we connect hardware and software components into our tactical core.

That is a huge team at the moment working on that. The software optimization is the point that we have to fulfill.

After that, if the function testings are really going forward, then the vehicle can be again handed over to the Ministry of Defense. We try to do it on this simple picture.

If one of these steps has a delay, the big problem is that we have a delay on the vehicle handover, and the Army is missing vehicles. That's the reason that also the minister says it's such an important project.

As I told, for Rheinmetall, it has absolutely priority number 1. It's the most complex digital program at the moment worldwide that we are doing, but I think we are not on a bad way.

It's good. It's good at the moment.

If you have a look to the next page, page 24, what are the clear targets for '26? This is the integration of these Rheinmetall naval systems.

That's very important to have the vertical integration, as I told before, on the Rheinmetall naval systems. The second point is the capacity ramp-up.

We are on a good way, especially on the vehicle side. Ammunition is full in scale.

For sure, the order execution. These are the main points to fulfill the sales.

If you have a look now to the figures, on the sales side on '26, we will have a growth rate of 40% to 45% on sales up to €14 billion to €14.5 billion. On '25, you see the nearly €10 billion to €14 billion to €14.5 billion.

Pro forma, if you see, we had €11.8 billion in '25, if we would add the civilian business. Operating margins is growing from 18.5% to 19%.

The expectation is that the operational free cash flow will be also good in '26, even when we were good in '25 with 66.2%. The last page shows you now the growth rates, where we are growing.

We will have a growth rate of about 20% on the vehicle side from €5.9 billion to €6 billion. Weapon and Ammunition, 40%.

This is the driver from this year. This is the driver of success, 40% plus.

This is because of the delays last year, because of the accident that we have in Spain, but because of the market. As you have seen, we have the business 100% booked so that only operational problems can stop us.

Digital Systems, again, a strong growth of 27%, and Air Defense, a growth rate of 25%. There is more in maybe if now the conflicts with Iran are going forward and the Middle East is also coming up.

What we do at the moment is really to grow in that areas and to invest also in this areas like hell because we believe over the next 10 years, there is a huge need. Then naval systems with €1.3 billion to €1.5 billion, it depends a little bit also about the decision of F126.

When we can start it, and I hope that over the next 2 to 3 months, we have a final decision on F126 where Rheinmetall can book this order. If you see the operating results, we are not everywhere in the target corridor.

Vehicle Systems, 12% to 13%; Ammunition, around 30%. We are there where we want to be.

The Digital Systems is still on a growth base because of all the investments. By the way, there is also our air systems, not air defense, but our air systems like F-35 and the drone business where we have to invest.

Air Defense is with 19% in good shape. There is also more in.

The naval system between 11% and 13% is still not in the corridor where we want to be because, as this is our target to go to 15%. That the Rheinmetall will have margins of about 19% EBIT growth.

Thank you very much for your attention. Now, we are ready for Q&A.

Good afternoon, everybody. Thanks for taking my questions.

The first one would be around the order pipeline. You pointed to the delays at the German customer in fiscal '25.

Given that you're hinting towards €80 billion orders in the pipeline for '26, what is the approximate volume that you deem highly visible in this year in '26, and probably what goes beyond this €12.5 billion related to the Arminius program? Related to that, what is the amount of firm orders that you would expect in '26, i.e., those that would then qualify for receiving also this 20%, 30% down payment range that you had mentioned on the last call?

Then I would have one more around the Weapon and Ammunition business, but maybe we take this one first, please.

Yeah. By far, the biggest one is Arminius.

On the Arminius side, we speak, as said, about between €12 billion and €13 billion. We expect that the down payment rate is between 20% and 30% of that.

This is what we have at the moment in negotiation. The second big piece is a contract for the ammunition.

On the ammunition side, we expect a fixed contract between 600,000 and 700,000 rounds full shot artillery. This is also a multi-billion contract.

Usually, on the ammunition, the down payment rate is also 20% between 20% and 30%. The next big piece is the Puma contract.

They asked for a new contract on the Puma side. In total, in Puma, we see another potential of minimum €3 billion, but up to €5 billion, not everything maybe in this year, but it can be €3 billion in this year.

By the way, it continues also later, yeah? It is not the final stage that we have now.

We book everything, and then everything is done. This is a continuous process.

Then we are now in negotiations with a new truck process. They need more protected trucks.

This is also more than €2 billion, etc., etc. These are the points where we are.

Medium-caliber ammunition, smart ammunition, 155 smart ammunition, there are hundreds of contracts at the moment. This are only the very big ones.

Is that okay?

Okay. Just to clarify that, if I take then the €12 billion, €13 billion Arminius, maybe what you said around ammunition would point me towards 3, maybe rather €4 billion, the Puma €3 billion.

We're easily approaching €20 billion on the firm order side that you would deem very realistic this year, and then the rest might be more on the frame side and things like that?

No, there are more fixed contracts. They want to change more and more to more fixed contracts.

I think also the smaller contracts, for sure, are fixed contracts. There are hundreds of smaller contracts, which are €5 million, €10 million, €50 million in this area.

I think it is more. It is very stable.

As we are fully booked, and that's important. We are fully booked for '26.

In '27, over the next months, we still have also in '27 a rate, it's, I think, more than 50% on 20. 56%.

6 was in between 60, 6 in '27. With the growth rate that we have, and we expect on the growth rate that we are able to grow more than 30% year by year.

As I said, this year between 40% and 45%. For the next years, the backlog is also a huge, also the fixed backlogs.

The other programs, nobody will stop it, yes? If you go on the program like the 8x8 vehicles, yeah, or the infantry fighting vehicles, you see that all vehicles, the trucks, the ammunitions, all that was expected came or more.

The reason is also very simple, because we still have nothing. On the ammunition, we have nothing on stock.

Everything is going still to our partners in Ukraine. We have to start for our stockpiling.

That's fair. Then if I may quickly move on then onto the ammunition side, and considering the latest developments in the Middle East and the related importance apparently of missiles and also air defense as such, what is the incremental opportunity that you see here given that the rocket artillery is starting in quarter 1 '27, and you will also need time to prepare for the full ramp on the Skyranger?

How quickly can you really respond to these incremental, a, requests, and, b, what could it do to the previously communicated targets in that particular business area?

A strong driver will be really the gun-based system, and we are at the moment in negotiations, and this is very, very fast, for the gun-based systems to deliver in August the first systems also to the Middle East because we are in production even if we have no contracts. We produce that systems.

We told you that we are ramping up to 400 systems. For that systems, we must be variable to go into the direction to give the customer directly systems and directly impact.

If we can deliver in August, and they are trained because most of these states have our systems, they can use it immediately. Nobody knows at the moment how long the conflict lasts.

President Trump says tomorrow it's stopped, but maybe it's not stopped. We will see, but these countries prepare themselves.

Over weekend, I have a bunch of phone calls with very high-ranking guys on the minister level to say, "How can we help?" That would be helpful for us on the system side.

On the other side, on the ammunition side, we need much, much more ammunition. The driver number 3 is then on the missile side that we really can start.

I see that we have a smaller impact in '27, but in '28, we should be ready. Missiles are not as easy as our ammunition because, on the ammunitions, we have to produce more from the same.

On the missiles, we have to produce new technologies, it's not as easy.

Very helpful. Thank you.

Good afternoon. Thank you for taking my questions.

The first one on '27, you highlighted in the slides as well that you're ramping up a lot of capacity in '26. You're preparing strong growth for '27.

You had guided in the past to 20 to potentially €25 billion of revenues in '27. Obviously, that was including Power Systems.

Now that is out, naval comes in. Could you, as a first question, just comment a bit on where you see the '27 now, and roughly the order coverage?

If I understood it correctly, you are above 60%, around 66% in the comments you just had. Also if the €20 billion plus, again, still stands for '27.

Then as a second question, just coming back to the air defense and reaching the 400 units essentially per year, are you fully booked already now with the orders that you have on hand, or can you fit in the Middle Eastern orders and with that get to a rate which is closer to 100% capacity utilization in the coming years? Thank you.

I think we can fit. We also can grow up.

It's not a huge investment also to grow up in the air defense systems. If we need more than eight systems per week, and this is what we plan at the moment, we can do that.

The investments are not so big. The only thing what you need, you need the supply chain under control.

A lot of them from the supply chain, we do by ourselves. We produce the weapons.

We produce the weapon feeding systems. This is an internal production, we can grow up in capacities.

I have not a full picture at the moment how much really will come because, as in Middle East, you need the contract and not the negotiations. It's not like Germany.

If you have the contract, then we can give you an overview about that. I have not the full picture at the moment, but the opportunities are huge.

This is for clear. Second point, for '27, we stay on the way, and we want to have the growth rates like we discussed, and in our planning is a growth rate between 30% and 40% CAGR over the period up to 2030.

This is the reason that we are able to reach this €50 billion if we are able also to make M&A processes. Over the last years, we were very lucky about that, and we made it happen, and we made good acquisitions.

We stay, Mr. Laskawi, to that figures.

Thank you. Just a quick follow-up, if I may.

As you mentioned M&A, is there any updates on the Iveco truck side? Is that progressing as planned, or?

Yeah.

There is a delay. Why?

Because Leonardo is now able to make the closing. If the closing is done, then we are able to step in.

As we had a handshake agreement that Rheinmetall takes over the trucks, and the tactical vehicles should be took over, and they took over from Leonardo side. We are weekly in discussion with the Leonardo team in this areas.

We are working on our DD, due diligence, side in this area. It should be faster.

The first deal between Iveco and Leonardo had a delay, and then our deal has also a delay.

Understood. Thank you.

That's a pleasure.

Hi. Thanks for taking my question.

I have two, actually. The first one is on the backlog because this year, it comes €6 billion short orders compared to your initial target of €70 billion.

My first question is, should we expect these €6 billion orders to shift into '26? My second question is probably a bit broader, but I understand that it's not a question of demand, but more a question of delay.

Is there any change in the German procurement process to prevent for further delay and to provide your confidence about the €80 billion nominations for this year? That's the first one.

The second one is on Germany because you mentioned during the call that there is a €500 billion package of further in Germany. Do you see you can keep the same capture rates, around 40%, 45%, as the previous package, and how much has been already allocated?

Thank you so much.

Yeah. I can say that the German institutions are working very, very hard, and there are delays.

It's only because of this huge growth inside. The organization, also the BAAINBw organization, is not able to grow as fast as they handle a contract.

I have a full understanding even if Auka is doing something, but the main task is clear on the BAAINBw and the B Muster in Germany. They are good.

Yes, there slipped something from '25 to '26. For example, what we expected is to book this 600,000 to 700,000 artillery rounds in '25.

Only that is a multi-billion contract in this area. That is what we miss.

It's not gone. The only thing was that it came back to the State Secretary.

The State Secretary says, "Is it up to '29, or do we have to book it more to 2030 or '31, etc., etc.?" We will have over the next weeks a decision, but there is a delay.

I'm not afraid that we have a basic problem. This is not a basic problem.

It's really a problem because the size of the contract and the number of the contracts are so high that the Parliament, the BAAIN, the Ministry of Defense, all of them are really busy. They are really busy.

We as a companies, we are also busy because, at the end of the day, we have to write the offers. We have to go into the negotiation.

It works relatively well. Not everything is in time.

As I always said, Marie-Ange, if I get it 3 or 4 months earlier or later, for me, it doesn't matter because as long as I'm booked for this year and nearly then also for the next year, and this will be very soon, we are not in hurry. We have enough time to do it.

The €500 billion package, I can exactly say how much we booked for the €100 billion package, but I cannot say exactly about the €500 billion package. What is the reason?

The reason is, first of all, there are a lot of new packages like the naval package where we have not such a lot of experience than on ammunition. On ammunition, on vehicles, it was relatively simple for us to say, "Okay, this is the packages that I get."

My expectation is that Rheinmetall still has a very, very high value in this area. If it is 42% or whatever, please, I cannot give you the figure.

The only thing what I can tell you is that we are in negotiation with the German government with a very, very high number all for this year and also for the next years of that €500 billion package. This €500 billion package should then go up to 2030, yeah, as you know.

This is not only for one for 1 year. All right.

Thank you. Very clear.

Hi. Good afternoon.

Thank you for taking my questions. First question is on cash and the cash guidance, please.

Could you elaborate on what the assumptions are in the guidance? It sounds, from what you said before in that call, that it could be a lot higher than 40%.

Then hopefully a quick question on Weapon and Ammunition, please. Can you comment on where you think the inventories are at the moment?

Are they improving?

Yeah. Klaus Neumann speaking.

I'll pick up the question on cash flow guidance for 2026. The 40 40% that we've guided, also higher than 40%, is in line with our, basically, midterm strategic ambition or guidance for our current growth phase.

We see potential to generate significantly more cash, but it's highly volatile and really depends on the level of prepayments that we can negotiate and the timing of the orders when they exactly will come in. If you look at 2025, and as I explained, yeah, we needed an increase in customer payments through prepayments of more than €1 billion to reach the level that we achieved in 2025.

In 2025 2026, in prepayments, the total amount will need to be bigger just to reach the 40%, because we will invest significantly in the expansion of our facilities, in the automation of our vehicle plants. That will require lots of cash.

We also will continue to build up stock to, basically, support the production of our existing orders. While there is potential above, yeah, the 40% considers some level of prepayments that we receive, but we think that will be.

Adrien, it's, I think, if I can say from my side, a very very simple thing. Only if Arminius and ammo contract with 12.5 and 3 to 4 billion rounds, we could have a down payment if all the negotiations are running well up to €5 billion.

Then we must not longer speak about cash conversion rates, yeah?

Great.

If at the moment, it seems to be that we are on a good way, but it's not a done deal. Then everything is fine.

I asked the question on one of the investor conferences, "What happens if we book 5, 6, 7 billion cash and have a cash conversion rate of whatever, 300% or 400%? What happens the next year?"

That makes sense. Thank you very much.

Yeah.

Yes. Good afternoon.

Thank you for taking my question. A first one, actually, would be quite high level on space.

I think, Armin, you mentioned on the press call that you aim to build a big satellite consortium in Germany. Could you maybe flag which areas you're targeting and, in particular, when compared to the other planned consortium between Airbus, Leonardo, and Thales?

How aligned would you be on the German defense needs, the European institution pushing to space? If you could shed some light on what exactly you're aiming to do there.

The second question would actually taking another stab at the free cash flow guide. Just within the 40% conversion that you're targeting, could you maybe share how many advances consumption you factored in this?

From the space side, the first question is, as we booked the SAR business, and we do this, as with ICEYE. The reason that we stepped in was very clear that the German government told us, "We want to have a German production, and we want to have a German service line because this is for national security.

These are national security data, and that is the reason that a German company, at the end of the day, has to take care about that." As Rheinmetall is the digitization head also of the German Army, the minister said, "Okay, it's a good idea if we do it that way."

That was tick in a box, and this is done. We will fulfill it.

Q3, the first satellite will be in space. Second point is now on the communication side.

On communication side, we said, "Okay, how can we do a thing to make the German customer happy because this is also on the defense side?" The space side is on the commercial side, one side.

On the defense side, it's always national security. Therefore, again, they need a consortium from the German side and German production lines.

If we build up now in Neuss the satellite production and OHB has in Bremen a production line and they have to build up other production lines because there is not enough capacity, we discussed with the government, "What can we do?" There is a partner number 3.

We have our joint venture then between OHB and Rheinmetall. There would be a working community also, which is possible, and that is in negotiations at the moment with Airbus.

Then there would be only one bidder. This is the consortium.

No other bidder about that is going up. Then the contract would be very safe for the consortium.

Is that clear, Chloé?

Yes, it is.

Klaus?

Yeah. You also had a question of, basically, the use of the prepayments.

I would put it the other way round. We need an increase of the prepayments that we currently have of 5.6 million by about 2 billion to get to the 40% as a starting point.

As Armin mentioned, if we get the 5 billion for the big contracts alone, yeah, we would have a significantly higher cash conversion rate.

We use it for stocking. We need it because the restocking that we have in our stocks to have the basic materials is a very important thing.

This is number 1. The second point, for sure, continuously to grow what we discussed also before on the vehicle side for automation because welding robots and other things that we buy in at the moment, it's also an investment.

Then we are really well-prepared because then the investment rate will go drastically down over the next years. Perfect.

Thank you. Pleasure.

Hi, Armin and Klaus. Hope you're both well.

Two questions on vehicles. One, could you just talk a little bit about Q4 where the EBIT came in quite light against the guidance from the CMD?

Just what happened there? Was it sales or it was execution or something?

Then the second one on vehicles, Armin, you talk about having capacity, I think you mean in the midterm, to do 1,000 vehicles, infantry fighting vehicles and and APCs. I just wonder, do you have that number for 2025, the actual?

Do you, at this point, have a good visibility on the annual ramp-up? If you do, can you share that with us, please?

Yeah.

We are by far not on the 1,000. We are nearly ready on the logistical side.

Here is everything done. Over 2 or 3 years ago, we started, as with the investments on the logistics vehicles.

Here, we are ready. We are really ready to boost up to this 4,500 or even more vehicles if we press everything out.

On the infantry fighting vehicles and on the Boxer side, we need three to four times higher capacities if you compare it what we did to grow up in this area. We produce a number.

I told you that the customers don't like to speak about all these numbers because these are official data also for, let me say, for aggressors, which are not good if they said how many infantry fighting vehicles we deliver, etc., etc. I can tell you, at the end of the day, we have to three to four times higher we have to grow up three three, four times to fulfill this 1,000.

Okay. On Q4, just what happened there, please?

Yeah. The Q4 thing is a very simple thing.

What you have is, first of all, you produce vehicles. If you produce the vehicles, everything is fine.

Then, for example, for heavy weapon carriers and other things, we have I think 12 or about 12 heavy weapon carriers ready. Still no capacities from the Ministry of Defense to make the final checks in this areas.

This is, as if you think quarterly, quarter-to-quarter, you always can have problems. Sometimes do you remember when we have this truck problem, yeah?

It was not a problem from our side. We produced it, but we were not able because the customer was not able to take over this trucks.

This happens sometimes. This happened also.

This was number 1. The second point was that on one of the vehicles, they had some software problems.

We have to sort that out. It is sorted out now in this area.

There are sometimes delays if you're not in 100% serial production. Now, we become more and more, and this is the positive signal.

We become more and more into serial production. If we produce thousands of Boxers, we are able to produce it like ammunitions.

The ammunitions is much easier because we produce thousands from the same thing. The beauty is that the vehicles that we produce over the next years, there is only the Panther, which is new, and the rest is more from the same.

We believe that we have a better track record over the next years on vehicle than we had over the last 2 years.

Okay. Thank you very much.

Yeah. Afternoon, guys.

Thank you for the question. Hope you're both well.

I wanted to touch a little bit on air defense and following, obviously, what's.

Hello?

Middle East. Have you had calls from?

Ben, we lost you.

Have you had calls or?

Ben, we lost you in between.

Can you hear me?

Yeah. Now, we lost you in between.

I only it stopped when you said you have a question about air defense, and then we didn't hear.

Sorry. Yeah.

The question is you talked a little bit about the Middle Eastern customers that you've kind of discussed in the call. Have you had calls from your typical customers, Germany, the UK, etc., about their air defense and what you can do for them?

Because it just feels like what has happened in the Gulf is fairly unprecedented from an air defense perspective. That would be the first question.

Then the second question, on the joint ventures with Lockheed and Rheinmetall under real and the approvals, I think you were waiting for some approvals there. Could you give us an update on the timeline around that and where you are?

Thank you. Yep.

Yes, Ben. We had contacts to a lot of governments also here in Europe.

I cannot name the contracts because, as if this war side, they want to do a lot government-to-government. This is, I think, I can say.

There are some countries who want to help government-to-government. They contacted us and said, "Okay, what can you do?

How much you can deliver? Can you change something, yes, for European countries that you have to deliver because, as we are in full production also now, to help them?"

We are on the way at the moment to work it out. We are not ready with the concept because this was over weekend where all the calls came in.

Germany takes care about that, and Germany wants also to help in that areas. I think that countries really appreciate that.

There are not only Germany. There are a lot of other European countries who are looking for that to help and to help very fast.

The Lockheed and the US agreements that we have is, I think it's too slow. We are usually much faster about that.

We want and we have to accelerate.

Can I ask a quick follow-up? When you're getting inquiries from governments, etc., given the kind of the magnitude of what has happened in the last couple of weeks, if you think about the next 18, 24 months, do you see potential for governments to shift their priorities in spending towards air defense and away from other areas, or do you think this will just be incremental demand that will come on top of everything else?

How should we think about that?

I don't see that they shift it. From my side is the priority number 1 is still ammunition.

On the ammunition, it's all different kinds of ammunition. Still artillery ammunition is a very, very big driver in this areas, but also medium-caliber ammunition has a renaissance.

Only Germany is looking for billions at the moment on the medium caliber where we expect also a huge, huge contracts. Then the whole missile business, where the whole Western world at the moment sees that they run out on ammunition.

Because it's the, as I said before, 4 €4 billion to spend €4 billion on missiles, that's a huge number. If you see the capacities that the Western world had, even the US, yeah, it's a very small capacity.

In some areas, US companies have a capacity of 70, 7-0, 70 missiles per year. This is usually shot down in half a day.

Yeah. Great.

Thank you, Armin. Appreciate it.

The pleasure.

Thanks. Hi, everyone.

Michael Raab, Kepler Cheuvreux. Mr.

Papperger, I'd like to get back to the issue of DLBO. Obviously, my understanding is this is sort of a lengthy process to retrofit those vehicles and equip them with the corresponding technology.

Probably, I don't know, a couple of months, quarters per vehicle, including testing, whatever it may be. My question is, this is happening in a phase in which you're ramping up capacities for production.

Does this need to retrofit those vehicles to be in accordance with DLBO requirements by the German MoD, does that sort of compromise your ability to increase the output of new Boxers, for instance?

No, absolutely not, because the new Boxers get the DLBO module immediately from the beginning. If we produce the new Boxers, that is much better than the old ones, because then you have the DLBO technology immediately inside that.

If you have all the old stuff, all the new productions, because now we have a clear settlement in infantry fighting vehicles, in Boxers, in 4x4 vehicles, what the equipment, how it has to look like. For the new ones is easy, because then you implement it directly.

For the old ones is the problem. The point is, because we have all the trucks and blah, blah, blah, there are thousands and thousands of vehicles.

That is the reason that these contracts are so huge. This is a multi-billion contract.

If we are ready and everything is ready about that things, I think at the end of the day, it will grow up to €10 billion.

Would you be willing to outsource some of the activity for retrofitting to other players in the industry to speed up the process?

We cannot. The reason for that is that, at the end of the day, we are responsible for that.

What we do is at the moment to implement technologies from others, and this is outsourced for sure, as you know. Rohde is doing the radios.

There are a lot of other suppliers who take care about that. The point is to make the software at the end of the day really really working.

This is our hot chamber. I don't want that other guys are looking into our algorithms.

Got it. Thank you.

Pleasure.

for taking my questions. The first one is on the XM30 program.

Please, could you provide an update from your side given that Milestone B approval has not yet been signed off by the US Army? You still confident that this is a realistic opportunity for you?

The second question is on the dividend. Why did you increase the payout ratio this year above the range that you previously communicated of 35% to 40%, given that the business still requires a lot of investments to scale up as manufacturing capabilities to translate your order backlog into revenue?

Thank you very much.

Are you unhappy if we raise the dividend?

No, not necessarily. I think it's an interesting decision.

Yeah. I start with the XM30 program.

On the XM30 side, we are, let me say, on a very, very good way with the US Army. The feedback, as I always said, is a very positive one.

On the XM30 side, they want to see, and this is now a program which is guided also from White House. This is also very interesting, a very interesting program.

White House and President Trump by himself takes care about the huge programs at the moment because he said, "We are late in different areas, and especially on the Army side, but also on the Navy side." There could be also an interesting opportunity for us in the US on the Navy side because they want to build up more capacities, and they want to get also the technology that we have on land side.

They have seen that we are able on the Lynx to have a full digital system. The XM30 is nothing else like an American Lynx with some American IPRs.

I'm positive. I believe that end of this year, beginning next year, we get an indication about the program, and I hope that next year, they really give an order.

It's not in our business case. The whole program is not in our big business case.

We have more in the US. In the US, it's not only XM30.

It's the artillery program. It's the program of the new howitzer where we offer this is the same howitzer that Germany gets at the moment, the self-propelled howitzer with the light gun, 47 cal.

Then we have these autonomous vehicle programs running in the United States. The newest thing now is, and this is also because we have now Loc Performance, that a huge programs of the Navy are coming up.

They look for competencies, and they look for companies who are able to build up capacities in the United States to build, yeah, some of the frigates that they have, and that could be an interesting program. It's in a very early stage.

At the end of the day, I think end of the year, we get a decision from the Americans if there is something where Rheinmetall can participate.

Yeah. Some comments on the dividend.

We had a very intense discussion in the board and also with the Supervisory Board about the level of dividends for 2025. You mentioned the payout ratio.

Yes, we are above the one payout ratio that we communicated and was a guide for the past. We had moved to the higher end in recent years already.

We looked now also on our equity position. If you look on the balance sheet, we have now an equity of €5.6 billion billion up from 4.5 in 2024.

On the balance of all the different factors, we think it is the right decision to increase the payout ratio for the dividend in 2025. We look at all the different elements our financial strength, our, basically, performance, and also our equity position to decide where we are going forward.

Great. Thank you very much.

Hello, everyone. Thank you for taking my question as well.

Just one final one from me, if I can. On your CapEx spend, I think I'm looking on your CMD presentation, you planned to invest last year, '25, roughly 11% of sales in CapEx.

I think you've just did 8%. Looking forward to '26 and '27, are the plans still the same, roughly 16% of revs in '26 and about 12%, 13% of revs in '27, is that still the plan?

Thank you.

Yeah. The CapEx will be roughly in the same.

It might be somewhat lower than originally planned because we have constant movement in the way we invest, and we also want to invest, yeah, only what is really required. The level will be very similar to what we communicated at the Capital Markets Day.

You always need to consider that some of the investments, especially those that we do together with partners, will be co-funded through capital contributions by our other partner in the joint venture.

We gave a clear target, Afonso, to find the synergies also on the investment side. What is also interesting is, at the end of the day, what is possible at the moment to reduce also the costs in this area.

This is a combination of that, that the CapEx is not as high as it was planned at beginning. If you're deep inside the program, at the end of the day, we found that it is always possible to reduce costs.

Very clear. Thank you very much.

Yes, hello. Good afternoon.

Thanks for taking my questions. I have two, actually.

Is it correct that your Electronic Solutions operating profit actually included a €48 million exceptional item related to divestments? If so, is this also the reason for the margin backdrop for Digital Systems in the segment guidance you have outlined at the end of the presentation?

Secondly, coming to Power Systems, if I'm not mistaken, you originally envisaged a deal to be done before Easter. Now you write about Q2 or Q3.

Does this change in statement imply more caution whether a sale can actually materialize, given the structural weakness in automotive, the challenging macro environment, etc.? Thank you.

Let's start with the question about Electronic Solutions. Yes, there is this gain on the disposal of a technology-based investment in a company that we had for several years.

As explained in our annual report, we divested this technology-based company because this technology is not part of our strategic portfolio. From our point of view, it's a divestment of any other asset that we have held and used over many years.

It just comes in the form of a divestment. That is not the main reason for the movement of the profitability of Digital Systems in 2026.

As Armin explained, there are lots of new programs that are ramping up in 2026 that require investments that meet a ramp-up cost and will only be covered by revenues that will materialize at a later point. There is cost pressure in 2026 through the ramp-up.

This disposal gain in 2025 is one element if you look at the both years next to each other, but it's not the driving reason. Big drivers are F-35 and the satellite business where we invest in this area.

Long-term, we are sure that the digitization, yes, will come into an area like we have on the air defense side. Then

PS. On PS, the original aim was to basically come to a final agreement before Easter.

That now seems to be delayed by a few weeks. We hope to conclude an agreement in Q2.

These processes are difficult to predict. The Q3 is a very latest date to finalize this process.

By the way, the buy process of NVL had also a delay of 2 to 3 months. That's very normal in this areas.

You need a target, first of all. This is our target.

We want to reach this target. At the moment, we still hope that we can sign it in April and have then the signing.

Then it depends a little bit, as from Monopoly Commission how long we need and to have the closing. The process is running, and nobody will stop it.

Okay. Understood.

Thank you.

Pleasure.

Good afternoon, and thanks for taking my questions. Apologies if that has already been asked because I could only join a bit later.

The first question is just on your existing joint ventures with Lockheed. Given the current discussion we have around air defense, could you imagine that also the cooperation will be expanded to other missiles and also including Patriot?

That's the first one.

We are in discussion with Lockheed. I'm not happy with the speed that we have in that area because I spoke with Jim, the CEO of Lockheed, about that, that we have to hurry up to reduce bureaucracy in different areas because the world needs at the moment the capacities.

On the rocket motor side, there is a huge need from Lockheed, and there is a huge need from us. What we do at the moment is not only to speak with Lockheed, but also with other companies, also European companies, because the capacities are there.

End of the year, we are ready. Beginning of next year, we go into qualification.

Then we want to fill the factory. The demand is so huge that we prepare ourselves at the moment to fill it, whatever missile it is.

We are very flexible in that.

Sounds good. The other question I had was just on NVL because the other day, I saw an article that you're expecting or that you could produce up to 1,000 unmanned vessels.

Could you elaborate a little bit on that? Thank you.

Yeah. This is, I think, the first decision and the first success.

We will make a joint venture where Rheinmetall Naval has the majority with Kraken. As Kraken has contracts with the US Navy and with US Marine Corps.

In that joint ventures, we have the ability to start with about 8 to 9 m boats, then to 12 m. We go to 24, but also to bigger boats which are unmanned.

This 1,000 boats is for the smaller ones, for sure not for the big ones. There is a huge opportunity to grow strong in that areas.

The German government is very, very interested. This boats have an opportunity to speed up to 70 knots and to be a really fast boat.

In areas where it is very difficult to run around, we think there is a really big market. On the small boats, only for your idea, without weapon systems, the price will be about between £300,000 and £400,000.

It's a smaller class. For the bigger ones, we are in the multi-millions.

If everything is running well, much more than €1 billion. There is an opportunity of much more than €1 billion sales.

The technology is in-house. We combine now also the Rheinmetall technology, the automation, as you know.

On the land system side, we won a lot of on automation programs. It should be easier to navigate on sea because there is much more space than on Earth in that area.

This is what we do at the moment. The working groups are together.

If we are now nearly 2 weeks owner of the company, give us a little bit time.

The final question I had is just on the consolidation line. It came in much lower for '26 at 8% against the original guidance of 12%.

Would you think that also for next year, where I think you guide 11%, that there is a likelihood that also 11% is maybe more on the high side? Thank you.

Product mix.

Yeah. There are significant changes in the structure, as explained with the different makeup.

I think I would more look at what we guide for 2026 than what we mentioned at the Capital Markets Day.

It's the product mix, and we enlarged the product mix where we have less consolidation. If you see on the satellites, there is not a lot of consolidation.

On the ship side, it's not a lot of consolidation. We're going to the right direction.

Makes sense. Thank you, both.

Thank you.

Thank you very much for your time. Very interesting discussion.

I hope we could give you an overview. We are responsible for the performance.

You are responsible for the share price. Thank you.

Bye-bye.