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the world of PAGE CHAPTER TITLE PAGE CHAPTER TITLE

002 Content 074 5 HENSOLDT sustainability report 076 5.1 Sustainability management 004 1 Preface 076 CEO Statement Johannes Huth, Head of KKR EMEA 078 About this report Chairman of the Supervisory Board, HENSOLDT AG 080 Corporate Governance 082 Strategy, vision, materiality analysis 006 2 Letter to Shareholders 086 5.2 Responsible business practices and business integrity Thomas Müller 088 Compliance and anti-corruption Chief Executive Officer, HENSOLDT AG 092 Corporate Digital Responsibility 096 5.3 Our people 010 3 HENSOLDT Business Update 098 Workforce 012 3.1 Report from the Divisions 100 Management approach: training, continuing education and talent promotion 012 Radar, IFF & Comms 104 Management approach: diversity and equal opportunity 014 Spectrum Dominance & Airborne Solutions 108 Management approach: health and safety 016 Optronics 112 5.4 Social engagement 018 Customer Service 114 Corporate Citizenship 020 3.2 HENSOLDT International 116 5.5 Planet, environment and resources 022 HENSOLDT France 118 Management approach: resources and environmental protection 024 HENSOLDT South Africa 120 Resource protection 026 HENSOLDT United Kingdom 122 Environmental protection 028 3.3 Cross-Divisional projects 124 Management approach: product responsibility 030 Eurofighter 126 Product responsibility 032 FCAS 130 5.6 GRI content index and GRI performance data 034 MGCS 132 GRI content index 036 MAWS 138 GRI performance data 038 European projects 040 HENSOLDT‘s space business 140 Limited Assurance Report of the Independent Auditor regarding 042 3.4 Supply Chain Management the separate non-financial group report 044 3.5 Procurement 046 3.6 Digitalization 142 Imprint

048 4 Innovations at HENSOLDT 050 4.1 HENSOLDT Ventures 052 4.2 HENSOLDT Cyber 054 4.3 Cross-Divisional innovation solutions 056 Innovation management within Optronics 058 Cross-Divisional AI activities 062 Mission management for helicopter upgrades 064 Hydrogen strategy 066 Electronic 3D printing 068 AESA EW antenna 070 Manta NEO 072 Integrated maritime solutions | 003 002 1 PREFACE Preface Chairman of the Supervisory Board Chairman oftheSupervisory Johannes Huth HENSOLDT AG

004 | 005 industry andpavethewayforfuture growth. HENSOLDT’s positionasdriverofinnovationinits Eurofighter fleets.These contract winsunderline produce anewAESA-radar fortheGermanandSpanish sizeable orders liketherecent contracttodevelop and raised investment,especiallyinR&D.We havewon through drivingoperationalexcellenceandsignificantly HENSOLDT hassubstantiallyenhanceditsprofitability of employeesbymore than30percent. Atthesametime, strategic acquisitions,ithasalsoincreased thenumber unparalleled growth momentum,furtheracceleratedby Not onlyhasHENSOLDTgeneratedandmaintained We lookbackatthepastthree andahalfyearswithpride. spirit andbyleveragingthepowerofinnovation. by mobilizingthecompany’s inventiveandentrepreneurial global brand.Together, wesetouttoachievethesegoals transform thecompanyintoastand-alonebusinesswith optimize itsproduct portfolioandfootprintaswellto Our objectivewastoaccelerateHENSOLDT’s growth, to From theoutset,wehadaclearandambitiousgrowth plan. two yearslaterbybecomingafullyindependentcompany. carve-out from Airbus,reaching thefirstsignificant milestone We in2016,withitspartial startedtheHENSOLDTjourney of theSupervisoryBoard fortheirdedicationandexceptionalwork. step cannotbeoverstated.Therefore, Iwouldliketothankallemployeesonbehalf In ayearofextraordinary circumstances, theachievementofsuchatransformational company’s IPOandlistinginthePrimeStandard oftheFrankfurtStockExchange. pandemic, HENSOLDThasheldcourseandreached asignificantmilestonewiththe ways. Whileweallhadtograpplewiththenewreality ofaworldbesetbyglobal Looking backatthepastyear, itisonlyfairtosaythat2020wasexceptionalin many

support HENSOLDTinthisendeavour. listed company. KKR islookingforward tocontinue to generation ofdefenceandsecurityequipmentasapublicly to benefitfrom cutting-edge technologiesforthenext and developitssalesnetwork.Itscustomerswillcontinue growth, italsoaimstofurther broaden itsproduct portfolio and doesnotonlyhaveambitiousplanstodrivefuture next phaseofgrowth. It is nowready totakethenext step With theIPO,companyhaslaidfoundationfor sensor solutionsprovider headquartered inGermany. HENSOLDT inbecomingtheleadingdefenceandsecurity the partnershipworksexceptionallywellandsupported industry expertise.Thecollaborationandcooperationin in high-techknow-how, entrepreneurial spiritandbroad industrial sector, HENSOLDT’s managementteambrought and long-standingexpertiseincarve-outstheglobal company withitsfinancialresources, network, international while KKRsupportedthegrowth anddevelopmentofthe and closecooperationbetweenthecompanyKKR: able toachieveallthesemilestonesthanksaverygood we havechosentherightstrategyforHENSOLDT. We were and theadmissiontoSDAXare aclearconfirmationthat The successfulIPO,thesubsequentshare pricedevelopment,

2 LETTER TO SHAREHOLDERS HENSOLDT AG Chief ExecutiveOfficer Thomas Müller Letter toShareholders

006 | 007 has proved resilient andwestartedpreparing foraglobal throughout theCOVID-19 pandemic.Ourbusinessmodel HENSOLDT hasdemonstratedextraordinary durability COVID-19 crisis. commitment underoftendifficult circumstances duringthe for theseshared successes overthepastyearandfortheir to sincerely thankallour employees –allovertheworld HENSOLDT publicontheFrankfurtStockExchange.Iwish grew ourcompanyanditsportfolioinallmarketstook strengthened ournowgloballyrecognised brandeven further, ment, wecontinuedtopursueourworldwidegrowth strategy, In aneventfulandextremely challengingmarketenviron- year forHENSOLDT. events. Thesepositivedevelopments–alongwithmanyothersmade2020asuperlative Our Xpellercounter-UAV systemwonovernewcustomersandprotected majorhigh-profile and wesubmittedourproposal forthePegasussignalintelligence systemattheendofyear. Our TRS-4Dnavalradarsystemswere selectedforthenewmulti-role warshipMKS180, positions HENSOLDTasasystemsleaderinthearea ofcombataircraft radarsystems. ECRS Mk1Eurofighter radarisnotjustthelargestinhistory ofourenterprise–italso At around 1.5billioneuros, theorder from ourGermanandSpanishcustomersforthe We achievedallourtargetsandatthesametimeunlockednewbusinessopportunities. 2020 wasanextremely successfulyearforHENSOLDT. Dear LadiesandGentlemen, Dear Shareholders, Munich, 14April2021

the world. and generatedadditionalnewbusinessinallregions of order from theUSarmedforces forourlaserrangefinder, We openedthedoortoakeymarketthrough ourfirst-ever business alsoremains ontrack,despitetheglobalpandemic. from whichwewillalsobenefit infuture. Ourinternational enormous progress inthedigitalizationofourenterprise, lockdowns. Inthecourseofthisprocess, wemade maintaining ourbusinessoperationsevenduring employees, customersandpartnerswhileastutely Force, wesucceededinsafeguarding thehealthof our actions coordinated byour dedicatedCOVID-19-Task crisis earlyon–inJanuary2020.Withawiderangeof

2 LETTER TO SHAREHOLDERS multi-domain self-defencecommandandcontrol system developed LYNCEA DEFEND,anintegrated360-degree, To citejustoneexample,ourcolleaguesinFrancehave intelligently networkingelectronic andsensorsystems. theperformancecapabilityofnewdefencesystemsby offering completesolutions, withtheaimofenhancing HENSOLDT hasgeared its strategytofocusmore on shortfalls intheirarmedforces. Inlinewiththistrend, to increase theirdefencebudgetsinorder tocloseequipment Our growth isdrivenbythe intentionofvariouscountries satisfied withthisperformance. million euros isparticularlygratifying.We canallbeextremely the adjustedfree cashflowbefore interest andtaxesto196 similar levelastheyearbefore. Inthiscontext,thegrowth of its revenues to1.2billioneuros anditsEBITDAmargin isata numbers affirm thisassertion:In2020,HENSOLDTincreased the turbulentmarketenvironment inthe2020fiscalyear. The business model,HENSOLDTwasabletoinsulateitselffrom Thanks toitsinnovativepowerandresilient, crisis-proof in theyearstocome. trust-based partnershipwithourmostimportantcustomer are lookingforward tofurtherexpandingourlong-standing, the nextgenerationofsecurityanddefenceapplications.We electronic sensorsolutions,wedevelopcriticalelementsfor and strategicsuppliertoGermany. Asaleadingsupplierof this emphasisesoursignificanceasakeytechnologypartner plans toacquire astrategicshareholding inHENSOLDT, as We are especiallyproud thattheFederal RepublicofGermany capitalisation totalledaround 1.5billioneuros. 32 percent ofourshares were infree floatandourmarket accrued tothecompany. Asoftheendfiscalyear, around 400millioneuros, ofwhicharound 300millioneuros approximately 33millionshares generatedproceeds of difficult marketenvironment. Theinitialpublicoffering of this milestoneinourdevelopmentamidstanextremely capital-market capabilitytoinvestors.We achieved on 25September2020,wealsodemonstratedHENSOLDT’s high-performance portfolio.Withourinitialpublicoffering we continuallyinvestinourinnovationcapabilitiesand Future sustainabilityplaysaspecialrole atHENSOLDT, and

created over500newjobs in2020,andhavealready filled To energetically drivethisdevelopmentprocess forward, we secure accesstonew, disruptive technologies. strengthen ourproduct portfolio,openupnewmarketsand integrated themintheHENSOLDTGroup. Theseacquisitions acquired atotalofseven companies inrecent yearsand With afocusedandclearlydefinedM&Astrategy, wehave integrated sensorsolutions. us foroursteadyevolutiontobecomeaprovider of even more effectively. Thisapproach hasideallyprepared more powerfulsoftware toprotect vehiclesonthebattlefield system withanexpandedsensorsuiteandsignificantly systems. We haveequippedourMUSSself-protection and neutralisationofevenstate-of-the-artairdefence Dominance sensorsandjammersenablesearlydetection with justasingleantenna.ThedigitalizationofourSpectrum system grantsvesselsequippedwithita360-degree view For example,ournewNESIS4000identificationfriend-foe technologies andmodifytheminlinewithnewrequirements. leverage theadvantagesofmature HENSOLDTbase segments andmarkets.Indoingso,wesystematically our high-performanceproduct portfoliotoserveother We are alsoconsistentlyworkingtoenhanceandexpand and information-sharingwithkeycustomers. solution provider, webenefitfrom ourdirect accessto orders forstudiesanddemonstrators.Asanindependent with consortiumpartners,wehavealready received and the“MainGround CombatSystem”(MGCS).Together Warfare(FCAS), the“MaritimeAirborne System”(MAWS) programmes, suchasthe“Future CombatAirSystem” networking expertiseinEurope’s majorfuture-facing this approach. HENSOLDTisalsoactivelydeployingthis radar andaSharpEyeMk11navigationradar, underscores multi-mode TRS-3Dnavalradar, theMSSR2000Isecondary Philippine navalfrigateBRPJoseRizal,consistingofour The integratedradarsystemdelivered lastyearforthe underwater andsurfacethreats. vessel toidentifyandcombatland-based,airborne, that comprisesawiderangeofsensorsaboard anaval

008 | 009 children inwarandcrisis zones. e.V.”, whichenablesGerman soldierstopersonallysupport as welltheGermancivil-societyinitiative“Lachenhelfen and ascholarshipprogramme forwomeninSouthAfrica– of theGermanMinistryDefencetopromote diversity Among otherefforts, wesupport the“InitiativeChefsache” our firstconcrete proactive responses totheCOVID-19crisis. safeguarding thewell-beingofouremployees–long-before our reputation forfulfillingoursocialresponsibilities and At HENSOLDT, wehavealwaystakenspecialpridein pivotal capabilitiesinthearea ofartificialintelligence. element ofopensource intelligence,aswellacquiring of signalintelligencetoincludetheevermore important LABS, weare expandingourexistingcapabilitiesinthearea With theacquisitionofAustriantechnologycompanySAIL cyberspace. systems againstthesteadilyincreasing threats in with keycomponentsforprotecting militaryandcivilian ENTity OperatingSystem”(TRENTOS),whichequipsus RISC-V-based, secure MiG-Vprocessor andthe“TRusted HENSOLDT Cyber, weconcludeddevelopment ofour the potentialofthistechnology. Inourjointventure ten-layer 3DprintedPCboard, impressively demonstrating partner NanoDimension,lastyearwedebutedthefirst 3D printingofelectronic circuits. Together withourIsraeli HENSOLDT hasbecomeagloballeaderinthearea of opening thedoortonewmarketsandapplications. green off-grid/microgrid hydrogen energy supplysystems, Our French subsidiaryNEXEYA isworkingondeveloping incredibly proud ofthem! identity andthusthedriverofourinnovativecapability. I’m growth. Theirentrepreneurial spiritisakeycomponentinour can continuetoinnovatethroughout ourstrong organic It isowingtothehard workofouremployeesthatHENSOLDT “best placestowork”websites. – asisimpressively demonstratedbymultipletoprankingson employees are highlymotivatedandproud oftheir company more than350ofthem–andwewillcontinuetogrow. Our

HENSOLDT AG Chief ExecutiveOfficer Thomas Müller Yours truly, your confidence. our IPO.We willdoeverythinginourpowertojustify our shareholders whohaveplacedtheirtrustinussince yourtrust.Thus,Iwouldliketoexpresslyearn thankall priority onfulfillingit.Andweunderstandthatmust responsibility everysingleday, andweplacea high new responsibility toyou.We are fullyaware ofthis exchange, weare entirely consciousofthisspecial team, Iassure youthat,asnewarrivalsonthestock Dear shareholders, onbehalfofmyentire management chapter devotedwhollytosustainabilityatHENSOLDT. for thefirsttime,thisAnnualReportalsocontainsaseparate matters.Thisiswhy,environmental, socialandgovernance practices andexpandourreporting onourperformancein express HENSOLDT’s commitmenttosustainable business as apubliclytradedcorporation,itisimportantforusto compliance are thusnothingnewforourGroup. However, Such topicsassocialcommitment,sustainabilityand further expandtheseactivities. allow ustouseourknow-howandcommitment we are constantlylookingoutfornewprojects thatwill protect abalonesinSouthAfricaagainstpoachers,and besides rhinoceroses, ourtechnologyisalsousedto power. Wildlifeprotection isespeciallyimportanttous: in Franceispowered 100percent byrenewable hydrogen at allourmainGermanfacilities,andoneofoperations year, wehavebeenusingelectricityfrom renewable sources and sustainabilitygohandinhand.Forexample,asoflast mandatory trainingseminars.AtHENSOLDT, innovation to ouremployeesthrough targeted processes and our zero-tolerance strategyforpreventing corruption In thearea ofcompliance,wecontinuallycommunicate

3 HENSOLDT BUSINESS UPDATE

010 | 011 REPORT FROMTHEDIVISIONS 3 HENSOLDT BUSINESS UPDATE vendor and systems product Successful & Comms Head ofRadar, IFF&COMMS Erwin Paulus Radar, IFF

012 | 013 to ourenhancedprominencein2020: to importantproducthighlightsandnewdevelopments,somekeyorderscontributed name isthusacquiringevergreaterinfluence–bothathomeandinternationally. Inaddition significantly moreadvantageouslyinplatformbusinessthankstoournewrole.TheHENSOLDT systems enterpriseforaircraftradarsystems,whichenablesustopositionourselves radar applications.Additionally, however, weareincreasinglyassumingtheroleofalead Our businessmodelremainstightlyfocusedonpassiveradarandtacticalairdefence in whichwewanttodevelopand manufacture thesuccessor product toour This laysthefoundationforestablishing ourownradarbusinessunitinSouthAfrica, to acquire theirAirTraffic Management(ATM) and Defence&Securitybusinessunits. radio andvideolinks),unmanned aerialsystems(UAS)anddatalinksavionics– area ofidentificationfriend-foe (IFF)systems,tacticalcommunications(including high-tech vendorTellumat –amanufacturer ofdefenceandsecuritysolutionsinthe One importantmilestonehere wasthecontractsignedinJulywithSouthAfrican radar oftheGermanNavy. 180 development.Thismeansourradarhasachanceofbeing designatedthestandard out topublictender, andwehavereceived aconcrete product target aspartoftheMKS radar, theprocurement oftheradar forthefuture multi-role warshipMKS180wasnot put on theC130corvette.OnbasisofGermanNavy’s positiveexperiencewiththis already deployinginthenon-rotating variantonthe F125frigateandasarotating system important projects. Thebestexample:ourTRS-4Dradar, whichtheGermanNavyis system tobedevelopedforthisproject. System” (FCAS),enablingustopresent ourselvesasanequalpartnerforthenewradar project period. 400 new, highlyqualifiedjobsindevelopmentandproduction overtheentire transmit/receive modules,alongwithotherenhancements.We willcreate around digital multi-channelreceiver andthelatestgenerationofantenna-mounted projects. Asthecore component,thenewMk1radar willbeequippedwithanew reputationour international andwillhaveapositiveimpactonotherlarge future the project issupportedbytheEurofighter nationstheUKandItaly. Thisenhances a Spanish-GermanindustrialconsortiumunderGermanleadership,andbecause 1.5 billioneuros, butalsobecauseweasthesystemdesignerare membersof Eurofighter fleets.Thisisnotmerely onaccountoftheorder volumeofaround array (AESA)radarfortheapproximately 130aircraft oftheGermanandSpanish contract forthedevelopmentandproduction ofanewactiveelectronically scanned At the same time, we also continued to expand our international businessin2020. Atthesametime,wealsocontinuedtoexpandourinternational Ourexcellentstandingwithourcustomersalsobenefitedusin2020othermajor, This newrole intheEurofighter alsopositionsusideallyforthe“Future Combat Air Oneofthehighpointsfiscalyearunderreview wastheclosingof ideally positionedforthefuture. projects,and international we are also integration innumerous majornational numerous noveldevelopmentsandour And withourwell-filledproduct pipeline, revenues ofmore than920millioneuros. just thelarge-scale projects. also intestoperation.Andthoseare navigation systemforuseatsea,is our new, integrateddisplayand civilian applications.TheMantaNEO, the Spexer500,forbothmilitaryand the Spexer600radar, thesuccessorto customer. IntheUK,weare testing integrated inavehicleforourGerman antiaircraft radariscurrently being Navy. OurnewSpexer20003D to itsfirstcustomer, theNorwegian non-rotator IFFsolutionwasdelivered conditions forthefirsttime.Ournew can nowsubjectittooperationaltest a truckfortestoperation,sothatwe developed andhasbeenmountedon Our newTRML-4Dradarisnowfully strides lastyearontheproduct level. flexibility inourexportbusiness. cost efficiency whilealsoallowinggreater enables ustounitecompetenceand among otherventures. Thisstep markets, TRS-3D radarforinternational In 2020,theSensorssegmentachieved Finally, wealsomade significant

3 HENSOLDT BUSINESS UPDATE & Airborne Solutions Head ofSpectrumDominance Celia Pelaz of choice The partner Solutions & Airborne Dominance Spectrum

014 | 015 actual developmentoftheaircraft, togetherwithourpartners, the systemarchitecture requirements, whichwillsubsequentlyformthebasisfor consortium partnerThales.Thisenablesusasthesensorsystemsuppliertohelpdefine also acquired initialcontractsforthestudyphasewithcivillawcompanyandour civil lawcompanyGerman-MAWS-GbR togetherwithESG and DiehlDefence,but German-French navalwarfare airborne systemofthefuture –wenotonlyfoundedthe improve andoptimiseexistingproducts andpresent new, innovativesolutions. approach. Withoureyesfirmlyfocusedoncustomers’requirements, wecontinually Solutions,wepursueourtasksinahighlyintegrative,cross-Divisional At Airborne working integration ofreconnaissance capabilityincarrierplatforms. proposal, onthebasisofKalætron Integral andasgeneralcontractor, forthe Consequently, thisyear ourGermancustomeraskedustopresent acomprehensive to detectradar-based threats atanearlystageandgreat stand-off distancestoday. innovations forourcustomers.Thisformedaspecialfocusin2020: Spectrum Dominancedevelopandrefine existingproducts, optimisethemandcreate Our modularKalætron product familyimpressively showcaseshowsuccessfullyweat in helicopters. we demonstratedourcompetenceintheintegrationofdatalinks andmissionsystems recognition that weenjoyfrom ourcustomers.Attheexpress request oftheBundeswehr, bundling allmajorcore competencesofnationalkeytechnologiesunderasingleumbrella. the FCMSConsortiumwithDiehlDefence,ESGandRohde&Schwarz,weare additionally in closecontactwithourcustomerandensuresIn extensivebusinesswithstableearnings. deeply integratedintheongoingstrategicdevelopmentoverlongterm.Thiskeepsus the solutionsonbothtechnologicalandprogramme levels,ensuringthatweremain Mission System”(FCMS)Consortium,wecanexercise adecisiveinfluenceonshaping programme. Withourassumptionoftheleadershiprole intheGerman“Future Combat developing anext-generationcombataircraft, rightnowEurope’s largest strategicdefence competence AirborneSolutions.In2020,weachievedkeymilestonesinbothsectors. are increasinglypositioningourselvesasanintegratedsensorsolutionhouseinthefieldof in multiplesegmentstodayand–asforexamplewithourmissionmanagementsolutions ourcomprehensiveairborneportfolio,weareattheforefrontofmarket sectors.With military This makesitpossibletoidentifydangersandneutralisethreatsearlyon–inboththecivilian artificial intelligencedelivertheinformationsuperioritythatisoftendecisiveontoday’s battlefields. information spectra.Highlyspecialisedsensorstogetherwiththeevaluationofrawdatausing solutions forgathering,evaluatingandpreparingdatainboththeelectromagneticcyber Our fieldofcompetenceSpectrumDominanceoffersourcustomersmodular, scalable,customised We haveassumedaleadingrole inthe“Future CombatAirSystem”(FCAS)for In 2020,asapartoftheprojectWarfare “MaritimeAirborne System”(MAWS) –the Thanks toitsleading-edgesensor technology, ourKalætron Integralisalready able The German-Czechexercise “TimberExpress” provided onestrikingexampleofthe

stand-off jamming. role (ECR)butalsoescortand not onlyanactiveelectronic combat potential ofcombataircraft tocomprise This significantlyexpandsthedeployment frequency rangeusingartificialintelligence. systemsoveranextreme most modern a secondandsuccessfullyjameventhe anti-aircraft installationsinfractionsof that thesystemcan,forinstance,localise targeted jammingsignals.Thismeans but alsoblindorspoofthemusing the firsttime,notonlylocalisethreats Now, ournewKalætron Attackcan,for product familytoincludeactivejamming. extensive capabilitiesoftheKalætron defence projects. as partofmajorEuropean research and new orders both ontheproduct leveland For 2021weare expectingnumerous achieved revenues of253millioneuros. future business.In2020,thedivision This creates ideal prerequisites forour an extremely positiveresponse. projectsinternational andare receiving proposals for thisproduct innationaland We havealready submitted multiple mastered alltestscenariosin2020. helicopter platformsalsosuccessfully In 2020,weexpandedthealready Our Kalætron radar warner for diverse Our Kalætronfordiverse radarwarner

3 HENSOLDT BUSINESS UPDATE Head ofHENSOLDTOptronics Andreas Hülle on everything an eye Keeping Optronics

016 | 017 provider with intelligent surveillance andreconnaissancesensors: provider withintelligentsurveillance internationalisation andinourstrategicorientationtowardpositioningourselvesasasystems unmanned airborneplatformsandeveninspace.2020sawusmakinggreatstrides of ourproductsatsea,underwater, onland,inarmouredvehicles,aboardmannedand appreciate theuser-friendliness, dependabilityandbroad,individuallycustomisablediversity They delivervital“insight”innumerousdefenceandsecurity-relevantsectors.Ourcustomers Our optronicandopticalproductssolutionsareapartofHENSOLDT’s corecompetence. systems in France. systems inFrance. together withNEXEYA, weare pursuingthedevelopment ofintegratedbridge Navy placedinitialorders foroursurfaceshipsurveillancesystemMEOSII.And European nations,Indiaisalsooneofourcustomersinthissegment.TheGerman deliveries toTaiwan are scheduledfor2021.InadditiontoGermanyandmultiple and Pakistanasnewcustomersforvariousversionsofouroptronics masts.Thefirst laser rangefindersfortheM1AbramstankofUSarmedforces. HENSOLDT Inc.wonitsfirstmajororder, todeliveraround 450HENSOLDTOptronics “Main Ground CombatSystem” (MGCS).Additionally, HENSOLDT’s USsubsidiary as anupgradewithmultiplecustomers.SETAS willalsoplayamajorrole inthefuture in placingourinnovative“SeeThrough ArmourSystem”(SETAS) forarmoured vehicles Dutch Fenneklightarmoured reconnaissance vehiclewithoptics.Andwesucceeded We havereceived orders toequipfurther Leopard andMarder tanksaswellthe vehicles are beingupgradedwithourMUSSmultifunctionalself-protection system. colour imagingforenhancedoperationalreadiness. Additionally, allPumaassault its “Very HighReadinessJointTask Force” (VJTF)upgradeprogramme, whichdelivers highlights includedanewsensorpackageforthePumaarmoured assaultvehicleand alone, wepostedanorder intakeofaround 100millioneuros inthissector. Product surveillance are inwideuseandhighdemandasleading-edgetechnology. In2020 revenues. Ourelectro-optics andperiscopesformilitaryvehiclesborder System” (MAWS) in2020. Finally, wedelivered thefirstmodelsofournewinfrared “MissileApproach Warning only bytheGermanFederalPolicebutStateofThuringia aswell. will bedeployedinpolicehelicoptersonthree different helicopterplatforms– not border andnavalpatrol missionsforthecomingtwoyearsalone.Infuture, ARGOS II orders foraround ARGOSIIsurveillancesystemsformilitary, 80ofourairborne South Africaalsoplayedasubstantialpartinourbusinesssuccess byacquiring standard. helicopter models.Thismakesoursystemtheinternational HENSOLDT have already signedaframework contractwithAirbusHelicopterstoequipmultiple transport helicoptersandparticipateintheTigerMk3upgrade. Additionally, we is proving anunqualifiedsuccess.We thushopetobeableequipallNH90 to fabricatea1.4 metermirror forakey customer. For thefirsttime,wecertifieda new fabricationtechnologythatwillenableus Our combinedLandandSecuritybusinessgeneratesthegreatest sales In Aerospace, MissileProtection our“Airborne System”(AMPS)forhelicopters isacceleratingin the Maritimesector.Internationalisation We acquired SouthKorea We are alsoimpressively demonstratingourinnovativecapabilityin space.

improving ourcashflow. our businesssuccessbysignificantly chain optimisationalsocontributedto continuing successfulgrowth. Oursupply and overwhelmingevidenceofour book-to-bill ratioisthusgreater than1, of around 290millioneuros. Our euros inneworders andachievedsales In 2020,Optronics posted over300million this facility. it possibletodoubleourproduction at standards ofthisindustrybutalsomade to meettheextremely exactingquality Oberkochen in2020notonlyenabledus overhaul ofourcleanroom fabricationin systems forproduction control. The with our“FinalFocusMetrology” (FFM) semiconductor photolithographysystems one oftheworld’s largest vendorsof to becomethepreferred supplierto successfully. We are currently ontrack business continuestodevelopextremely up furthermarketsforourproducts. strategy, wealsowanttocontinueopening With ourcomprehensive internationalisation our opticalsightsfrom ourWetzlar plant. Bundeswehr withanadditional5,000of equip MG5machinegunsoftheGerman company’s founder. Inthissector, wewill reaching backtoMoritzCarlHensoldt,our unbroken chainoftechnologicalprogress our Target Optics,whichrepresent an And finally, ourIndustrialSolutions And ofcoursewecannotfailtomention

3 HENSOLDT BUSINESS UPDATE Head ofCustomerService Temur Karbassioun trajectory a growth On Service Customer

018 | 019 just someofthehighlights2020: activities.Hereare efforts thatwehavebeenpursuingforyearsinmanyofourservice business units.Theongoingpandemicaffirmedtherightnessoffocuseddigitalization One importantdriverhereisourgreaterintegrationwiththedivisionsandinternational Traditionally continuestogrowstrongly. ahigh-marginsegment,CustomerService But withinanincredibly shorttime,wedevelopedcomputer-based trainingofferings – our strengths. Naturally, wewere initially unable toperformmanyon-sitecall-outs. fully integratedinthemission.We received agreat dealofpraiseandrecognition forthis. extremely strictpandemic safetyprotocols toprovide consultationandsupportonsite, units were assignedtothe Balticregion. We dispatchedourspecialiststoEstoniaunder Bundeswehr’s participation intheNATO BalticAirPolicingmission,inwhichEurofighter and secures sustainablebusiness. system solutionsandproduct offerings, whichenhancesourreliability forcustomers present ourservicestocustomersrightfrom thestart asanintegralpartofour domain approach intheCustomerServicearea as well.Thismakesitpossibleto now evenoperateourownsalesunittomarketcorresponding services. others are afraidtotouch. Onaccountofthisenormouspotential,weatHENSOLDT certificates, butalsotheknow-howtomastertechnologyofproducts that our extensivetechnologicalexpertise.Specifically, wenotonlypossessallrequired colleagues, whohavealwaysbeenstrong inthisarea. We are alsosupportedby special services.We arealotaboutthelattertwofrom learning ourFrench NEXEYA product portfolioandthird-party products aswellour“aboveandbeyond” and formsthefoundationforourfuture integratedoffering. a comprehensive service portfoliothatcoversourentire globalorganisation in digitalbreakout rooms, participantsusedvirtual reality (VR)toolstoprepare superior digitalcompetencecanalsoaidusinternally. Represented asavatars was transformedintoanonlineeventthatshowedbeyondadoubthowour a large meeting.Onaccountofthepandemic,in-personmeeting international more effectively? In2020,weoriginallywantedtotacklethesequestionsin In pretty muchallrespects, thepandemichasonceagainputspotlighton One particularlynoteworthyeventinthefiscalyearunderreview wasthe At thesametime,weare continuingtoexploittheadvantagesofHENSOLDT This foundationprovides thebasisforourservicesown,ever-growing How canwebetternetworkourcountrysubsidiariesandlinkthemarkets closer toourcustomers. and globally, inorder togeteven our on-siteactivitiessystematically our aimremains tofurtherexpand now generallyworksextremely well, digitally. Andeventhough thelatter conditions onsiteorremotely and in theairoratsea,underextreme Tornado, whetherontheground, obsolescent subsystemsonthe radar installationinPakistanor the extramile.Whethera35-year-old Where othersjustgiveup,wego and ourServicesunitsospecial: once more whatmakesHENSOLDT for us.Itenabledustounderscore 2020 wasthusanimportantyear points withalotofourcustomers. And indoingsowescored bonus even inextreme stress situations. and capableoffindingsolutions showed thatweare “mission-ready” to ourcustomers.We definitively and builtdigitalbridgesforservices with ourITexperts,foundalternatives and troubleshooting and,together new methodsforremote maintenance often usingVRandAI–aswell

3 HENSOLDT BUSINESS UPDATE

020 | 021 3 HENSOLDT BUSINESS UPDATE and NEXEYA HENSOLDT France Managing Director Jérôme Giraud

more besides! markets –andeven and conquernew new customers now jointlygain solutions, wecan and NEXEYA’s system sensor competence HENSOLDT’sWith on realisingsynergies. The focusisnow extremely rapidly. that wascompleted integration process comprehensive the startofa 2019 marked NEXEYA inautumn The acquisitionof LA FRANCE VIVE – FRANCE HENSOLDT

022 | 023 both companiesopenupentirely newmarketsforHENSOLDT. management inthebroader sense,thefuture jointofferings of reproduction andrepair, obsolescencemanagementandlife cycle attention. WithNEXEYA’s expertiseintheareas ofMRO, connection, NEXEYA’s portfolioofservicesisreceiving special and technologicalbaseintheFrench defencesector. Inthis the French market–enablingasigniﬁcantlybroader industrial At thesametime,merger improves HENSOLDT’s accessto on tonewhorizons The nextstep: with accesstotheworld’s markets. world –withtheGroup’s globalnetworkproviding NEXEYA NEXEYA products are beingintegratedintotheHENSOLDT continually beingadaptedtomeetFrench requirements while products anddevelopnewones.HENSOLDTproducts are We cannowjointlyleveragesynergies, enhanceexisting entire Group inorder toenhancecollaboration. together keyemployeesfrom Francewiththestakeholdersof the minimumpossibletimeand,evenmore importantly, brought off rightaway. ThePMIenabledustosynchronise processes in The post-merger integration(PMI)process atNEXEYA kicked mission accomplished Integration: as FCAS(see3.3),MGCS3.3)andtheEuroMALEUAS. German-French footprinttomakethedecisivedifference–particularlyinprojectssuch years alone.Together withNEXEYA, theHENSOLDTGroupcanleverageitslarger projects andplannedwithGermanytotalseveralbillioneurosinthecoming The FrenchdefencemarketisamongthemostattractiveinallofEurope.national

as well. bilateral programmesmarkets and thusininternational sector –andonethatplaysakeyrole inpioneering Group toapivotalGerman-French playerinthedefence All inall,theacquisitionofNEXEYA levelsuptheHENSOLDT solutions. customers strong uniquesellingpointsandsingle-source management systemandaeronautic ISRsolutionoffers range ofsensorswithNEXEYA’s maritimebattle as thecombinationofGroup’s comprehensive Technical complementarityisafurtherkeyadvantage, one unitedsystemprovider The vision: sustainability initiatives. plays amajorrole instrengthening theGroup’s advantage fortheGroup. Asidefrom that,thissegment and storinghydrogen represent adecisivecompetitive civilian sectors,NEXEYA’s existingsolutionsforgenerating are nowmore criticalthaneverinboththedefenceand on hydrogen-based solutions.Asenvironmental concerns NEXEYA alsobringstheGroup ground-breaking expertise powering tomorrow Our innovativeness:

3 HENSOLDT BUSINESS UPDATE HENSOLDT South Africa Managing Director Rynier van derWatt

to beconquered. new markets products and have ledtonew competencies universe. Expanded in thecompany’s important role increasingly is playingan South Africa HENSOLDT in 2019, Introduced AFRICA SOUTH SAWUBONA – AFRICA SOUTH HENSOLDT

024 | 025 and solutionsofHENSOLDTSA formasolidfoundationforfuture business. today throughout Africaandinmanycountriesoftheworld, theinnovativeproducts East, establishingHENSOLDTSA’s marketleadershipinthisdomain.Already inuse is alsobeingdelivered for anationwidespectrummanagementsystemintheMiddle Armed Forces forpeacekeepingmissions.Thecompany’s biggestcontractofitskind with HENSOLDTSA‘s“Force Protection Jammer” hasbeendelivered totheAfrican preferred suppliersince2000.Andanewfleetof armoured personnelcarriersequipped received anautomatedspectrum managementsystemfrom GEW, theauthority‘s surveillance system.TheSouthAfricanCommunicationsRegulatory AuthorityICASA helicopter fleetoftheGermanFederalPolicewere ARGOSII equippedwiththeairborne New orders alsogenerated additionalsales.TheSouthAfricanAirForce andthe defence solutionsatacapabilitydemonstrationdaytokeydelegatesfrom theindustry. of security, ITanddefence.More recently, thecompanyalsopresented aselectionofits business leadersfrom Africainformedthemselvesaboutthelatestsolutionsinareas the SouthAfricanindustry. More than300decisionmakers,technologyexpertsand conference washeldpurely virtuallyforthefirsttime –alsothefirsteventofitskindin security solutionsin2020toabroad audience.Duetothepandemicsituation, As hostofthe“Sovereign SecurityConference”, HENSOLDT SApresented itsintegrated The foundationforthisistheinnovativeproducts, whichare wellestablishedinthemarket. Innovative products –newmarkets growthto theinternational ofthecompany. Radar BusinessUnit(previously Tellumat) contributeanimportantbuildingblock decades ofexperienceandcompetenceGEW, HENSOLDTOptronics andthe HENSOLDT companiesandcustomers.Today, andtogetherasHENSOLDTSA, and expertise.Newtechnologiesare tobedevelopedhere forlocalandinternational Business Unitthatisbeingintroduced. Ajointdevelopmentcentre poolsresources business unitsare nowbeingcreated withinthelegalentities,suchasRadar Resources, Legal&ComplianceandCommunicationssupportthebusiness.New with anoverarching structure, thecentralisedkeyfunctionssuchasFinance,Human under onenewbrandumbrella. Nowsuccessfullytransformedintoajointorganisation 2020 wasmarkedbytheintegrationoftwoformerlyindependentbusinessunits One brand–onestrategy company‘s globalreach.Andthisisjustthebeginning. HENSOLDT SouthAfricaisalreadymakingasignificantcontributiontofurtherincreasingthe currentlythelargestindustrialbaseoutsideEurope, brand indefenceandsecurityelectronics.With in 2019fromthemergerofGEWandOptronics–isestablishingitselfasleadingSouthAfrican shorttime.Thenewbrand–created at acompanythathasmadenotableimpressioninvery common languagespokenasafirstinSouthAfrica.Itiscertainlyanappropriategreeting „Sawubona“ isoneofthetypicalSouthAfricangreetings–itmeans“Iseeyou”inZulu,most

export business. HENSOLDT Group withadditional the globalbusinesssuccessof helicopters andjets–contributingto for vessels,submarines,landvehicles, and securityauthoritieswithapplications marketfordefence on theinternational reinforced itspositionasaheavyweight African market.Thisnewbrandhasalso to successfullybringanewbrandthe HENSOLDT SAhasnotonlymanaged In ayearcharacterisedbylotofchange, Plenty ofaction–onegoal innovative 3Dlandandmarineradars. further expanditsleadingpositionwith project, thecompanynowintendsto the HENSOLDTGroup. Inajointincubation form asolidbasisforitsintegrationinto the locationsinCapeTown andPretoria development, production andsalesat and more than100employeesin Long-term partnershipswithcustomers manufacturers inthisﬁeldAfrica. Tellumat isconsidered oneoftheleading With ahistoryofmore than50years, own radarbusinessunitinSouthAfrica. the foundationforestablishmentofits divisions in2020,HENSOLDTSAhaslaid Management (ATM) andDefence&Security With theacquisitionofTellumat‘s AirTrafﬁc Further acquisition–additionaldivision 3 HENSOLDT BUSINESS UPDATE International BusinessDevelopment HENSOLDT UKandHeadof Group ManagingDirector Russell Gould

land-based solutions. its portfoliotoinclude gradually expanding systems andis and monitoring maritime navigation tradition withits continues this HENSOLDT UK seafaring nation. considered aproud Britain hasbeen For centuries, THE SEAS RULER OF – KINGDOM UNITED HENSOLDT

026 | 027 including theprotection of windfarmsintheUS. The successofthestrategywasalready reflected inthefirstnewcontracts2020, model intotheSPEXER600. end, HENSOLDT2020has,forexample,furtherdevelopedthe SPEXER500entry protected areas suchaswarehouses, perimeters,infrastructures andborders. To this comprehensive securityand surveillanceportfolioisthuscreated forsensitiveand which are particularlysuitableforthedetectionofandprotection againstdrones, a Together withthelandandcoastalsurveillanceradarsofHENSOLDT SPEXERseries, and othersecurityapplicationsonland. control centres, forborder surveillance,butalsofortheprotection ofcriticalinfrastructure wider rangeofapplicationsfrom itsnavalroots –forcoastalsurveillanceandinporttraffic One optionistheproven SharpEyetechnology, whichduetoitsflexibilitycanbeusedfora New products fornewtargetgroups the UKhasalready proved tobeaspringboard totheUSAonseveraloccasions inthepast. which nowneedstobeexploitedtogetherwiththeHENSOLDTparent company. Afterall, was strengthened. Afterall,themaritimeworldmarketoffers awiderangeofpotential, growthIn addition,afurtherfocuswasplacedoninternational andtherelated salesforce especially withregard totheotherproducts from theHENSOLDTuniverse. specifically monitoringallcurrent developmentsintheBritishdefencemarket–alsoand opportunities. From anewlycreated management position, HENSOLDTUKistherefore The foreseeable developmentsandtheprogrammes already underwayopen upnew an establishedandstrong marketparticipant–alsoduetotheacquisitionofKelvinHughes. 2020 wasayearofstrategicinvestment.InGreat Britain,HENSOLDTisalready considered Investing inpeopleandmarkets parent company. contributes itsproductstosystemsofthegroupandextendsaccessUKfor HENSOLDT UKalsohasitssightssetontheglobalmarketformaritimesolutions, of Defence isexpectedhereinthecomingyears.Inaddition, in projectsfortheMinistry expenditure. AgainstthebackgroundofpandemicandBrexit,increasedinvestment defence market,whichisafterallthesecondlargestinNATO worldintermsofabsolute systems. Indoingso,thecompanyispursuingamulti-levelstrategy. OnefocusistheBritish continues tofocusonthedevelopmentandproductionofmaritimenavigationsurveillance Following theacquisitionofKelvinHughes–nowrenamedHENSOLDTUKcompany

need tobedevelopedtogether. markets are openingup, which now additional newopportunitiesand the HENSOLDTGroup of companies, clear. Asafullyintegratedpartof success atHENSOLDTUKare thus staffing, allsignsofprogress and product pipelineandthe necessary of current tenders,awell-filled With participationinalarge number Opening upnewopportunities situational awareness. to HENSOLDTUK–ensure enhanced deep-sea patrol vesselsand–thanks enable tacticaldatalinksonsixnew French Navyin2021,where theywill units are scheduledfordeliverytothe IFF Solutionfrom Germany. Thefirst NEXEYA inFranceandtheMSSR2000 LYNCEA combatguidancesystemfrom successfully integratedintothenew example, Britishnavigationradarwas the company‘sotherlocations.For is intensifyingitscooperationwith At thesametime,HENSOLDTUK for newsuccesses Overarching cooperation

3 HENSOLDT BUSINESS UPDATE

028 | 029 3 HENSOLDT BUSINESS UPDATE THE TYPHOON THE EYEOF

way tothefuture. that pavesthecompany’s An orderworthbillions from HENSOLDT. the ECRSMk1radar essential update: be ﬁttedwithan Spanish aircraftwill in 2025,Germanand in Europe.Starting of numerousairforces forms thebackbone the EuroﬁghterTyphoon aircraft delivered, over550 With

030 | 031 new radarcanscarcely beoverstated. As anationalkeytechnologyand mainsensoroftheEurofighter, thesignificanceof in reconnaissance andfire control performance –evenintheinitial“Step1”configuration. transmitter andreceiver modules,theECRSMk1willdeliver afurtherdramaticincrease receiving performanceof theCAPTOR-E:withitsdigitalmultichannelreceiver andnovel But theECRSMk1willeclipseevenalready significantlyenhancedtransmissionand form oftheCAPTOR-E. culminated intherollout of activeelectronically scanning array(AESA)technologyinthe and variouscomponentsfrom HENSOLDTfrom dayone.Thenextdevelopmentstage with purely mechanicallyscanningantennas(CAPTOR-M)–builtwithradar available solutions.To date,thevariousEurofighter trancheshaveusedradarsystems The ECRSMk1radarsystemwillrepresent asignificantimprovement overcurrently The system the full-scaledevelopmentofentire radarsystemasaHENSOLDTproduct. Having assumedresponsibility forsystemdesign,HENSOLDTimmediatelycommenced granted itsapproval fortheproject. Theorder wasawarded shortlythereafter byAirbus. In June2020thewaitingwasover:BudgetCommitteeofGermanBundestag partners intheUKandItaly. Spanish partnerINDRA,andsupplementarydiscussionswere conductedwithfurther the necessarypoliticaldecisions.Preparations were madeincollaborationwithour HENSOLDT beganworkingbehindcloseddoorstodevelopthesystemandsupport As soonasitbecameclearthattheEurofighter wastoreceive anewradarsystem, The project the “MaritimeAirborneWeapon System”(MAWS). such asthe“EurofighterLongTerm Evolution”(LTE), the“FutureCombatAirSystem”(FCAS) and system providerforfighterradarsystems,andtheECRSMk1opensdoortofutureprojects Common RadarSystem”(ECRS)Mk1.ThismarksHENSOLDT’s transitionfroma supplier toa company holdsresponsibilityfortheentiresystemdesignoffollow-onmodel,“Eurofighter the hardwarecomponentsfornextiterationofradarEurofighterTyphoon, Rather, the when flyingmissions.Forthefirsttime,however, HENSOLDTwillnotmerelydevelopandproduce and Tornado, asthepilots’“thirdeye” andeventhethreeEurofightertranchestodate,theyserve aircraft inGermanyandmanyotherEuropeannationsaswell.FromtheStarfightertoPhantom combat Since the1960s,aHENSOLDTradarhasbeenbehindnoseconeofvirtuallyevery Erwin Paulus, HeadofRadar, IFF&Comms for thenext 15to20years, andthusmakesakeycontributiontostabilisingtheenterprise asawhole.” It willopenthewaytofuturemarketsthatwecannotyetevenbeginquantify. Ournewroleguaranteesthegrowthofourradarbusiness opportunityforHENSOLDTthatwilltransformourentireradarbusinessandunleashenormousgrowthpotential.“This isaonce-in-a-century the majorplayersinindustry. provider, placingusonaparwith enterprise –from suppliertosystem for anew, strategicrole forthe growth strategyandlaythe groundwork decisive momentumtothegroup’s the newEurofighter radarwillimpart As acompleteHENSOLDTsystem, for electronic warfare. target recognition andnovel functions imaging, evenfurtherenhanced The result: ultra-high-resolution extensive software enhancements. number ofchannelsthanksto process datafrom anevengreater will thenbeabletoevaluateand (the “Step2”radar),thedigitalreceiver In afuture iterationofthesystem from 2023. be delivered inadvance starting the “Step0”radarsystemsto will evenpermitanupgradeof continue through to2025.This multichannel receiver willnow Development ofthenewdigital The mission

3 HENSOLDT BUSINESS UPDATE SKY SOVEREIGN forcooperationbetween new aircraftandother of tomorrow. Itstands Air System”,orFCAS nations andpartners, defence programme. mission participants. The “FutureCombat the combataircraft for short,ismuch more thanmerely EUROPE’S and betweenthe largest strategic It isEurope’s

032 | 033 rollout ofthefirstflyingdemonstratorin2027,withFCAS itselftobemission-ready startingaround 2035. a reality intheplannedsensor-effector integration.Followingfurtherdefineddevelopment phases,current planning callsforthe Together withitspartners,HENSOLDT isalready working tomakethetechnologyneededforsixthpillar–networked sensors– platform Aircraft 1. been placedtodefinethenecessarytechnologies: weapon systemofthefutureThe developmentoftheairborne rests onsevenpillars,forwhichinitialorders havealready The sevenpillarsofFCAS and jointlywithallies. targets andthreats soastoensure airsuperiority –bothnationally the keypillarsofproject: detecting,localisingandneutralising and Rohde&Schwarz.Theirmissionistojointlydeveloponeof by HENSOLDT, includesthecompaniesDiehlDefence,ESG This “Future CombatMissionSystem”(FCMS)consortium,led core tasks:theinteractionofnetworkedsensorsandeffectors. participants haveformedaconsortiumtotackleoneofthe Before theactualdevelopmentcanevenstart,German Challenge 2:thetechnology initiatives cannotberuledout. for anewstealthaircraft. Possiblecooperationorpooling have signedonwiththeconcurrent BritishTempest concept be ofinterest toothercountriesinfuture. Sweden and Italy and Spain,mustpassnumerous consultations,andcouldalso Development, currently beingconductedbyGermany, France carry outaprogramme ofthismagnitudeandimportancealone. None oftheparticipatingnationseithercanoriswillingto Challenge 1:thepoliticallevel combat aircraftandguaranteeEurope’s defensivecapabilities. and constantlyexchangingdatawithotherunits,willfarsurpassthecapabilitiesofanyknown countries areseekingtojointlydevelopanaircraftthat,flankedbyunmannedaerialsystems single programmesinEuroperightnow, bothtechnologicallyandpolitically. Theparticipating At theheartofthisvisionis“FutureCombatAirSystem”(FCAS),onemostsignificant linked withotherunitsonthegroundandatseaviaacombatcloud. mission areaswillbewonbytacticallynetworkedmannedandunmannedaerialvehicles decide theoutcomeofaerialcombatarelongpast.Airsuperiorityovertomorrow’s complex The daysinwhichindividualgiftedpilotslikeManfredvonRichthofencouldsingle-handedly Engine 2. Unmanned escorts 3. Networking inan air combatcloud 4. (MAWS) (see3.3).Andtheseteamswillcontinuetogrow. Weaponsolutions forFCASandthe“MaritimeAirborne System” Right now, more than50employeesare already workingonfuture hardware andsoftware, whichitcontinuallydevelopsfurther. competence, HENSOLDTalready possessesthenecessary Solutions milliseconds willbedecisive.WithitsAirborne planned unmannedsystems.Becauseinfuture missions, intelligence –notleastinorder toenablecoordination ofthe data andmakeitusableinreal timewiththeaidofartificial The challengenowistoanalysethisever-swelling floodof the airspaceandground terrainofoperationareas. night, forsurveillance,identificationandtarget acquisitionin numerous mannedandunmannedaircraft types,dayand sensors are already deliveringtheinformationneededby acquisition andneutralisationorcombatingthreats –HENSOLDT systems, fire control sensorsoridentificationfriend-foe, target combat aircraft.radarandsignalintelligence Whetherairborne and oft-proven experienceinthearea ofsensortechnologyfor In thisconnection,HENSOLDTstandsoutwithitsextensive Experience: theHENSOLDTadvantage Testing ofconcepts invirtualspace 5. Networked sensors 6.

concept

Stealth 7. 3 HENSOLDT BUSINESS UPDATE capabilities, intelligently Germany andFrance, INTELLIGENT ADVANCES HENSOLDT aims a systemshouse Combat System” networked, from a singlesource. (MGCS) jointly “Main Ground envisioned by to operateas and offerall In the

034 | 035 threats couldthusbecome areality. and automaticcombatingofbothphysicalcyber difficult ofimpendingdanger terrain,automatic warning poor visualconditionsandevenautonomousdrivingin so astobeintuitivelyunderstandable.Navigationunder information, analysedusingartificialintelligenceandprepared situational picture across allvehiclesmadeupof available other crew sees.Andthey alsoreceive acomplexcomplete The result: thecrew ofeachvehiclecanseewhat every laser linksandadditionaldrones thatoperateasrelays. will insteadbefedintoacentralsystemviajamming-proof data willnotonlybeavailabletothevehicle’s crew, but reconnaissance. Themostimportantbreakthrough: these autonomously self-organise asswarmsdeliveradditional generate thenecessarybasedata.Unmanneddrones that Highly versatilesensorsandradarsystemsonthevehicle combined operations. and effectively inenemyterrain,eitheraloneor the MGCScrews tomanoeuvre theirvehiclessafely years. Thesedelivertheinformationneededtoallow today alongwiththoseexpectedtoemerge inthecoming communication technologiesthatare already available This ispossiblethankstothediversesensor, radarand Battlefield omnisciencewithartificialintelligence tank crewscanscarcelydream. in asinglesystem.Thisistheonlywaytounlockcapabilitiesofwhichtoday’s strength willbeitsintelligentnetworkingandcollectionofwidelydiverseinformation As thesuccessortoGermanLeopard2andFrenchLeclerc,itsmain “Main GroundCombatSystem”(MGCS)istobemuchmorethan“just”atank. Even thoughitwill–probablylookthatwayatfirstglance,thevisionof situational picture inreal timewillbeabletorespond effectively. and analysealltargets andthreats rapidlyinanunderstandable complex missionareas. Only thosecombatantswhocantrack Demonstrator 12”(MTD12)–isofspecialimportanceinever more designated“MainTechnologysystem. Thelastone–internally components oftheMGCS–chassis,armamentsandsensor The nextstepistodeveloptechnicaldemonstratorsforthevarious Implementation a comprehensible 360-degree view. HENSOLDT –canpool,analyseandrepresent alldata in And SETAS –the“SeeThrough ArmourSystem”from HENSOLDT Ventures offers protection againstcyberattacks. portfolio offers systemsforairandground surveillance. automatic self-protection andfire control systems.Ourradar laser range-findersandcommunicationsystemseven From thermalimaging,nightvisionandtargeting devicesto HENSOLDT Optronics candeliverthenecessarysensors. from stock”. system requires. We cansimplytakewhatweneed“direct ways, aswealready possessvirtuallyallcapabilitiesthatthe The MGCSproject playstoHENSOLDT’s strengths inmany Direct from stock

3 HENSOLDT BUSINESS UPDATE “Maritime Airborne with Germanand Warfare System” French partners. security atsea. HENSOLDT is foundation for will guarantee In future,the this together AT SEA laying the SAFE

036 | 037 partners ESG,DiehlDefenceandThales. necessary groundwork togetherwithitsthree consortium history ofmilitaryaeronautics. HENSOLDTislayingthe these requirements –anunprecedented courseinthe only thenbegintheactualdevelopmentonbasisof the manifoldrequirements forthesystemarchitecture and To thisend,GermanyandFranceresolved tofirstdefine as e.g.withsatellitesinreal time. and unmannedsystems,navalotherforces aswell collaborate andshare relevant datawithothermanned the surfaceacross extensivemaritimezones.Thesewill that candetect,trackandneutralisethreats onandbelow The future platforms liesinnetworked operating/airborne able tofulfilallfuture requirements withoutrestrictions. in service,thecurrent maritimepatrol aircraft willnotbe faster response times.Thoughproven overmanydecades become significantlymore complexandrequires exponentially generally duetotechnologicaladvancement,buthasalso In recent years,thethreat situationhasnotonlyintensified New threats –newrequirements system canbeplacedonthebasisofstudy’s results. with respecttofuturerequirements,beforetheordersfordevelopmentofasuitableweapon Navy. What’s systemvendorsaretoconductafeasibilitystudy special:forthefirsttime,military marine patrolaircraftBrequetAtlantique2oftheFrenchNavyandP-3COrionGerman In 2018,itwasdecidedatGerman-Frenchleveltojointlydevelopareplacementfortheageing reconnaissance system new airbornemaritime Decision forthejoint Germany +France Germany development ofa 2018 Feasibility study combat system combat End of2020 Optimal enterprise onitspathtobecomingamilitarysystemshouse. background workforthis project, whichisimportanttoour 20 expertsfrom otherdivisionsare providing thenecessary and theAnti-SurfaceWarfare Architect. Additionally, more than the MAWS ChiefEngineer, aCombatMissionSystemArchitect HENSOLDT expertsoccupykeyroles inbothstudies,including relating tocertification–mustbecompliedwith. environment andwhatnationalguidelines–includingthose how MAWS canbeintegratedintheGermanmilitarysystem supplementary studyin2020.Itspurposeistodetermine partners were alsocommissionedtoconductanational Concurrently, in2020HENSOLDTanditsGermanMAWS art andtheresulting possibilities. all typesofmissions”,onthebasiscurrent stateofthe to “determinetheoptimumcombatsystem”that“canperform next twoyears,theteamis,inwording oftheorder, tasked for thefirstMAWS feasibilitystudy attheendof2020.Over HENSOLDT anditspartnerswere jointlyawarded thecontract Two studies–oneobjective Supplementary study Supplementary into Germancommand Integration ofMAWSIntegration and controlsystems End of2020 optimal combat system optimal combat ofthe Identification MAWS End 2022

3 HENSOLDT BUSINESS UPDATE FOR TOMORROW TEAMING UP to researchsystems to makeourfuture and organisations other enterprises teaming upwith European level, HENSOLDT is and solutions more secure. On the

038 | 039 tracking potentialthreats. For thisundertaking,HENSOLDT offers theonlyfullyintegrated sensorforidentifyingand constantly monitortheirenvironment andtheirreconnaissance area willperformakeyrole here. institutions are workingon thenecessarytechnologies.Thesensorsthataircraft useto unmanned aircraft. Withabudgetof27.5millioneuros, enterprises and research teninternational ensure thatsuchremotely pilotedsystemscansafelyshare airspacewithother mannedand The “European DetectAnd Avoid FunctionBasedonNewSensors”project (EUDAAS) aimsto project. Thissystemwillprovide importantreal-time reconnaissance atmediumaltitudes. France, ItalyandSpain,Germanyplaysaleadingrole intheEuropean MALERPAS (“Eurodrone”) UAS technologyisconsidered oneoftheparamountfieldsfuture securitypolicy. Together with EUDAAS (EDIDP)–safeguarding theEuropean MALERPAS communication systems. system conceptandthearchitecture designaswellthenecessarydigitalradarand Within thisframework,HENSOLDTisprimarilysupportingthedevelopmentof funded withabudgetof10millioneuros. defence research agencyForskningsinstitut(FOI)have formedaconsortium.Thisproject is Society, theNetherlandsOrganisation forAppliedScientificResearch (TNO)andtheSwedish To executethisproject, elevenenterprisesandresearch organisations, includingtheFraunhofer also create afoundationonwhichfuture ground andmaritimesystemscanbuild. for tomorrow’s aircraft thatissmaller, lighter, more cost-effective andmore powerful.Itwill architecture includingtherequisite components.Thiswillnotonlyoffer aninnovativesolution (CROWN) isseekingtofindtheanswer. Theobjective:todefineanoverarching system technology project “CombinedRadar, CommunicationsandElectronic Warfare Functions” combined withelectronic warfare capabilitiesinasinglesystem?ThejointEUresearch and How canthemostcriticalradarandcommunicationfunctionsofanaircraft beoptimally CROWN –theultimateinelectronic interaction function effectivelyandjointlymasterthecrisesoftomorrow. To presentjustthreeexamples: thattheEuropeanDefenceUnioncan innovation andacompetitiveEuropeanindustry tomorrow’s diversedefenceonasharedtechnologicalbasis.Foritisonlythrough working withotherleadingenterprisesandorganisationstoplacemajorprojectsfor this acrossEurope.Inmultilateralresearchanddevelopmentprojects,HENSOLDTis technological challengesforasecurefuture.Thereisalsobroadpoliticalagreementon We canonlybestrongtogether. Onlybyworkingtogethercanwemasterthecomplex developing future jammers. operational conceptand contribution topreparing the HENSOLDT ismakinganimportant on abudgetof14.8millioneuros, In thisproject, whichoperates threats.maritime andairborne role toneutraliseground-based, combat aerialvehiclesinanescort This willenablemainlyunmanned to neutralisepotentialthreats. such attacksthemselvesinorder technology neededtoexecute provide memberstateswiththe Tasks” (REACT)project seeksto Electronic AttackforCooperation of thefuture. TheEU’s “Responsive some ofthemostsevere threats Electronic attackswillconstitute through jamming REACT (EDIDP)–protection

3 HENSOLDT BUSINESS UPDATE BUSINESS FOR NEW FRONTIER INFINITE AN

experience in has beenamassing HENSOLDT conditions. under space intended foruse radar systems for opticaland key components and todayprovides space since1962,

040 | 041 as isrecognised byleadingspaceagenciessuchasNASA, ESAandDLR. Here too,proven HENSOLDT technologycanmakeadecisivecontribution, against possiblecyberattacksthesatellite’s hardware orsoftware. potential todamageorevendestroy anexpensivesatellite.Thisalsomeansprotection velocity ofaround 25,000 kilometres perhour. Eachofthesetinyparticleshasthe and over700,000pieceslarger thanonecentimetre thatcurrently orbittheearthata means protection against the20,000piecesofspacedebrislarger thantencentimetres of millionseuros against abroad spectrumofthreats inspace.Foronething,this innovative HENSOLDTtechnologyhelpsprotect satellitessometimescostinghundreds solutions tocountercyberattacks.Inlinewithourcompanymotto, “DetectandProtect”, synthetic aperture radar(SAR),telescopes,opticalinstrumentsandhardware/software To thisend,weare developingnewsensortechnologysolutionsintheareas of Our applicationscovertheareas ofRadar, Optronics, CyberandSpectrumDominance. In space,protection isofparamountimportance. Serving byprotecting space-related qualificationprocesses. HENSOLDT SpaceConsultingcanassistinsuccessfullyimplementingthese certification process required forspacedeployment.Withitsenormousexpertise, for whichapotentialmarketexistsare subjectedtotherigorous andtime-consuming proven theirpotentialinmilitaryandcivilianuse.Secondly, onlythosetechnologies HENSOLDT boaststwoadvantageshere: Firstly, thetechnologieshavealready often under themostextreme conditions. they mustbeabletofunctionreliably andwithnomaintenanceforatleasttenyears applications sothattheycanwithstandthehighdemandsofspaceenvironments, where The aimhere isessentiallytoadaptproven technologiesfrom terrestrial airandground From earthtoorbit–andbeyond commissioned byNASA,ESAandDLR. Thus, newbusinesspotentialisbeingopenedupfromexistingradarandopticalcompetences– communications, securityandspaceexplorationincollaborationwiththeindustry’s majorplayers. landing ofApollo11.Today, observation, ourSpaceDivisiondevelopssolutionsforearth/planetary High-tech from HENSOLDThasbeenanessentialmissionpartnersincethefirstmannedlunar –spacehasbeentheobjectofsteadilyincreasinginterestinrecentyears. Whether civilianormilitary Telescope, BepiColombo,Juice) missions(JamesWebb Space Instrumentsforexploration reconnaissance satellites Componentsfor (TanDEM-X, PAZ, KOMPSat-6) SARsatellites Sensorsformodern (MetOp,METImage) forweathersatellites Opticalinstruments using HENSOLDTtechnology: projects andmissionsthatare realised four examplesofcurrent satellite protection inspace.Thefollowingare optical communicationinspaceand of planetandspaceobservation, focused onthethree mainareas HENSOLDT’s spacebusinessis Current spaceprojects

3 HENSOLDT BUSINESS UPDATE IS KING CASH and businessunits. within alldepartments project management on theproductand integrated perspective that strivesforan with aculturalchange meeting thischallenge HENSOLDT is a systemprovider, its pathtobecoming the longterm.On their existenceover if theyaretosecure adapt andimprove must constantly shorter, andenterprises are becomingever product cycles Innovation and

042 | 043 resupply times. by analysingthemtogetherwith thesuppliers’ order toreduce our production throughput times to includeoursuppliersystemsinthisprocess in while increasing itsfl exibility. We are nowseeking times. Asaresult, HENSOLDT reduced itsfi xed capital necessary production buffers andthuscutthroughput nonconforming parts.We cangraduallyreduce the planning andsignifi cantly reduce thenumberof This hasenabledustostabiliseourproduction Our production in progress. excessive inventoriesandtoestimatework using KPIs.AdigitalSCMcockpithelpstoavoid specifi c contractorsare alsodisclosedandtracked status, shortagesordisruptionsinthedeliveriesof end-to-end (E2E)planningcircles. Dataonproduction strictly alongtheseneedsonthebasisofmonthly highest priority. Thedivisionsaligntheirproduction The current needsofourcustomersare alwaysour Our customers successes shortlyfollowingtheirdeploymentandhadapositiveimpactonHENSOLDT’s networkingcapitalandthecashsituation. the variousdivisions–inparticularwithaneyetoward optimisingproduct specifi cations. Eventheinitialactionsgeneratedsignifi cant Developed in2020byaninterdisciplinary HENSOLDTteam,thenewsupplychainmanagementconceptisnowbeingrolled outin in suchawaythatitcangrow withusgoingforward. Management System”(HMS).Thekeyadvantagehere isthattheenterprise-widesupplychainmanagementcanbescaled This alsoentailsplanningofaphasedextensionandexpansiontoinstitutionalisethenewprocesses forthe“HENSOLDT and optimisedleanprocesses willinfuture formthebasisforanintegrateddigitalimplementationofsupplychainmanagement. signifi cantly more effi cient andisstrengthening theinteractionbetweena wide rangeofenterprisefunctions.Jointlydeveloped A process thathaslongbeenstandard practiceintheindustryhasnowalsomademanagingongoingprojects atHENSOLDT avoid ineffi ciencies. production planning,andconsequentlyprocurementplansaswell.Thisenablesustolargely andPurchasingwithcurrent Sales, projectmanagementinthedivisions,CustomerService, reduction oftheproductiondepthandincreasingdivisionlabour. Theprocesssynchronises interaction betweenthevariouslinksinsupplychainthatbecameessentialdueto integrating suppliers,internalprocessesandcustomerrequirements.Thekeyisthedynamic system, HENSOLDTisstrivingtooptimisethefl ow ofinformation,materialsandcapitalby therolloutofanenterprise-wide,cross-functionalsupplychainmanagement(SCM) With 200 daysinthemediumterm. that thecompanycanreduce itscashconversioncycle tothetarget potential amountingtoseveral million euros. Thisisthe only way expanded further, withtheambitiousaimofrealising furthercash increased. Thesupplychain managementactivitiesare nowtobe and boththefl exibility andresponsiveness oftheenterprisewere greatly collaboration ofdiversespecialisationswasalsodecisivelyenhanced improving ourcompany’s cashsituation.Theinterdisciplinary management actionsnotonlymadeasignifi cant contribution to With savingsinthehighdouble-digitmillions2020,supplychain incoming-goods inspections,testingandstoragesubstantially. between production, suppliers andqualitymanagementalsoreduced HENSOLDT’s successspeaksforitself:theintensivecollaboration Our outcome deliveries butalsotoagradualreduction ofinventories. negotiated, whichcontributesnotonlytoaculture ofjust-in-time call-ups asoftherequirement date.Evermore suchcontractsare being Renegotiated frameworkcontractsoffer thenecessaryadaptabilityfor market todayalsodemandsexceptionalfl exibility from oursuppliers. The tremendous dynamicwithwhichHENSOLDTbringsproducts to Our suppliers 3 HENSOLDT BUSINESS UPDATE RELATIONSHIPS DEPENDABLE PARTNER FOR RELIABLE

of suppliers. and management on theselection One keyfocusis merchandise groups. as alldirectandindirect procurement aswell and monitorsproject centrally oversees management, Procurement in oursupplychain As thepivotalplayer can dependon. with partnerswe growth isonlypossible HENSOLDT’s rapid

044 | 045 perspectives whichultimatelybenefitallparties. This offers dependability to bothHENSOLDTanditssuppliersopensupnew are produced in-houseandwhichonesare tobeboughtinevermore important. Going forward, ourrapid growth willmakethequestionastowhich(sub-)products the flexibilityoftendemandedforsmallquantitiesandshortdelivery times. This paysoff, bothinterms ofourhighqualitystandards andwithrespect to agreements makeitpossible forsupplierstogrow togetherwithHENSOLDT. all suppliers.Regularplanningcircles ensure transparency. Long-termcooperation HENSOLDT placesextremely highpriorityontrulypartneringrelationships with The wholeismore thanjustthesumofitsparts compliance guidelines. that alsotakesintoaccountsustainabilityaspectsandstrictadherence to the systematicassessmentofallsuppliersandtheirimportanceforproduction HENSOLDT’s Procurement unitassures thestabilityofsupplychainthrough suppliersatanearlystage. alternative It enablesminimisationofrisks–amongotherwaysbyinvolvingpossible assessment systemformsthebasisforflexible,forward-looking purchasing. suppliers hasgivenrisetoreliable strategiccooperationrelationships. Astrict andexternally.partner bothinternally Thecollaborationwithanetworkofpreferred “knowledge ispower”,thisenablesProcurement to establishitselfasawelcome within theenterprisethatare importantfortheproject. Proving theoldsayingthat procurement-relevant processes, ensuringthatthisunitworksdirectly withallunits This startswiththeearly, cross-departmental involvementofProcurement inall Strategic cooperation our supplierscanonlybemasteredthroughapartneringrelationshiponbasisofequality. shadows onourroadtobecomingasystemsprovider. Thechallengeswhichthispresentsfor The productportfoliohasbeencontinuallyexpanded,andnumerousmajorprojectscasttheir HENSOLDT hasgrownsuccessfullyinrecentyearsbothorganicallyandthroughacquisitions.

3 HENSOLDT BUSINESS UPDATE NORMAL THE NEW DIGITAL IS

customers andServices. but alsoactivelyinvolves just oninternalprocesses, agenda focusesnot year 2020.Ourdigital its worthinthepandemic groundwork thatproved HENSOLDT laidthe at theendof2019, digitalization programme company-wide itscomprehensive, With

046 | 047 digital formatwillnowbeoffered muchmore frequently infuture. virtual environments onshort notice,wassopositivethatthenew equipped withHENSOLDTLTR-400 IFFtransponders,shiftedto response tothetrainingon thehelicoptersofBulgarianAirForce in-person instructiontocyberspace.Forexample,thecustomer The HENSOLDTAcademyalsotransferred concretely scheduled New remote maintenance possibilitieswere explored andestablished. that were workingfrom home. collaboration toolsneededforthesuddenmajorityofemployees HENSOLDT rolled outastableITlandscapeandthedigital digitalization hasalready become.Withinaveryshorttime, Then thepandemicstruck,impressively highlightinghowessential The crisis networked products, servicesandthedigitalworkplace. configuration management,fabricationandlogisticsevennew, an ecosystem,completeend-to-endprocesses, technologyand maintenance, theestablishmentofadigitalpartnerlandscapeand Ideas covered suchapplicationsasdigitalcustomerserviceand concrete applicationscenarioswere defined. were rapidlydevelopedonthisbasisandalmost200additional initiatives testifiedtoanalready impressive situation.Newideas of theenterprise’s digitaldevelopment.Closeto90existing It beganatthestartof2020withananalysiscurrent state HENSOLDT’s digitalizationprogramme comprisesmultiplestages. The programme able torapidlyandflexiblyadaptthesuddenchangesinitsparameters. once againprovedthewisercourseinpandemicyear2020asHENSOLDTwas implement newinternalfunctions.Planningforthefutureinsteadofreactingtocrises at theendof2019wastodevelopnewproducts,improvecustomersupportand digitalization offers.Thedeclaredobjectiveoftheprogrammelaunched Much soonerthanmanycompanies,HENSOLDTrecognisedtheopportunitiesthat medium andlong-termstrategy. contribution toourbusinesssuccesswithits in 2020:itwillcontinuetomakeasubstantial HENSOLDT notonlyreceived afurtherboost enterprise management,digitalizationat With itsclosecontactwithandsupportfrom will ensure globallyunparalleleddatasecurity. equipped withourproprietary operatingsystem, secure, proprietary HENSOLDTCyberprocessor, enhances customerorientationandourextremely opportunities. Theeffective utilisationofproduct data solutions willopenupnewmarketsandmarket On theproduct side,new, networkedandintelligent in effective, loss-free collaboration. in theirplanningandenableemployeestoengage potential ofdigitalizationalsosupportmanagement processes andenhancingefficiency. Dataandthe by artificialintelligencewillcontributetoautomating greater transparency. Advancedanalyticssupported of project andproduct performancewillensure On thefunctionallevel,end-to-endmeasurement divisions. and willnowbeimplementedinfurtherstagesall At thesametime,however, thekeyelementsremain planned projects onHENSOLDT’s digitalagenda. The pandemicthussignificantlyacceleratedmany The vision

4 INNOVATIONS AT HENSOLDT

048 | 049 4 INNOVATIONS AT HENSOLDT OF INNOVATION THE LEADINGEDGE HENSOLDT Ventures. The answer: within ourenterprise? “above andbeyond” the urgetolook mentality and embed thestartup also permanently But howcanwe all departments. success across our business the mainspringof This hasalwaysbeen of HENSOLDT’s DNA. always beenapart Innovativeness has

050 | 051 HENSOLDT orinnewsubsidiaries. business ideasandmodelsthat willcontributesignifi cantly tofuture successat continued uninterruptedthroughout thepandemic.Thus,innovationsbegetnew processesjammers andoptimizinginternal toincrease addedvalue,andallprojects printed circuit boards practicalinproduction environments, developingnovelinfrared Further current projects includerevolutionary innovationstomake3Dprinting of own forces soastoassure dominanceacross theentire spectrum. resolving thesituationalpicture inthefaceoffuture hybridthreats andprotecting Alongside conventionalsignalsintelligence,suchacapability contributes greatly to ever more importantinthe faceofincreasing attacksbasedonmediamanipulation. applications (suchaseventsecurity).Suchsoftware-based platformsare alsobecoming targeted situationalassessments–acapabilityofinterest bothformilitaryandcivilian analysis thatdeliversinformationinfractionsofasecondcanbedecisivefor occurrences inupto30different languages.Thiswillenablecomprehensive data to automaticallyanalysemovingimagesandsummariseimportantorunusual AI capabilitiesthatleveragespeech,imageanddataanalyses,forinstancetheability toinvestinscalablesoftware products. Theaimistodevelopexpanded,combined and tookthefi rst steptoward realising itsvision ofa“virtual”sensor, andcontinues (OSINT) in2020,HENSOLDTVentures laidthegroundwork forfurtherAIapplications With theacquisitionofagloballyleadingsupplieropensource intelligencesystems Analytics –makingpictures talk potential toformthenucleusforaholistic,secure cyber-ecosystem inGermany. drawing broad attentionfrom ITexpertsoutsideof HENSOLDTcircles andhasthe secure haveresulted inthecreation ofasecure ITbasisthatstopshackerscold,is including thematchingprocessor. Ourefforts tomakeHENSOLDTproducts more thought impossible:thedevelopmentofourown,highlysecure operatingsystem Within anincredibly shorttime,HENSOLDTCyber(see4.2)hasachievedwhatmany Cyber Security–ITsecurityfrom asinglesource Ventures asaninvestor. will continueandintensifyoverthenextfi scal yearwithanexpandedfocusonHENSOLDT The consistentgrowthandsuccessofourprojectstodateaffi rm thecoursesethere,which also playsadecisiveroleinsupportinginnovationacrossalldivisionsofourenterprise. prerequisiteswerecreatedinthefinecessary scal yearunderreview. HENSOLDTVentures innovations thatcaneventuallyleadtospinoffsorstrategictechnologyinvestments.The As aprototypicalincubatorandtechnologyscout,thisunitadditionallyconcentrateson and topicsinthecyber, artifi cial intelligenceandroboticsareas,aswelldataanalytics. Founded in2018,HENSOLDT’s in-houseinnovationincubatorfocusesespecially on ideas nations havenowalsoexpressed interest. Infrastructure, andotherEuropean Federal MinistryforTransport andDigital drone-defence project oftheGerman The systemisalready apartoftheFalke interfere withotherelectronic devices. only limitedusehere giventhattheycan a decisiveadvantage,asjammersare of airports endangered bydrones, thisoffers Particularly forXpellerdeploymentsat approach, andcapture themwithanet. automated taskswhenunknowndrones and isalsoabletoassumefullyorpartially platform forawiderangeofapplications defence system,VADR canbeusedasa VIONICS. Aspartofthemodulardrone family incollaborationwithEUROA- Drone Response”(VADR) fortheXpeller drone solution“Versatile Autonomous Ventures hasdevelopedtheinterceptor in arobotics application,HENSOLDT the useofartifi cial intelligence(AI) To citejustonetypicalexamplefor for thewin Robotics –artificial intelligence 4 INNOVATIONS AT HENSOLDT “ and software. hardware its proprietary secure solutionwith Cyber offersahighly sectors. HENSOLDT andcivilian military role –inboththe play anevergreater unauthorised access protection against data securityand global digitalization, In oureraof GERMANY” MADE IN

052 | 053 modules andapplicationssimply andrapidlyonthisplatform. developers andusersaround theworldtodeveloptheir ownoperatingsystem A corresponding developmentenvironment additionallypermitsthird-party components andtheoperating systemcore, makesitthe mostsecure ofitstype. each other. Thisfeature, combinedwithmathematicalverificationofindividual components oftheoperatingsystemmodularly, separatedandisolatedfrom TRENTOS forshort.Itsarchitecture makesitpossibletooperatemultiple HENSOLDT Cyberdevelopedthe“TRustedENTityOperation System” – Originally initiatedwiththeaimofprotecting ourownproducts evenbetter, The primarytarget ofeveryhackeristhecomputer’s operatingsystem. the firstunhackablesoftware The operatingsystem: third parties. it canbeapplieduniversallytoanyprocessors andprovided asaserviceto This process developedbyHENSOLDTCyberoffers enormouspotentialbecause securing thehardware supplychain. subsequent use–andHENSOLDTCybernowoffers theworld’s firstapproach for manipulation –inparticularfrom thedesignofsubsequentproduction untilits of anindividualkeythatrestores theoriginalintended function.Thiseffectively prevents for manipulatingit,thecircuitry isinvulnerable.Theprocessor canonlybeusedbymeans that itisencrypted.Asanunderstandingofthecircuit logicisafundamentalprerequisite secure chipsofthistype.Insimpleterms,itscircuitry isconfigured duringproduction so is aRISC-Vprocessor basedonagloballyuniqueprocess thatmakesitoneofthemost high-security multi-purposeprocessor. TheMiG-V–MiGstandsfor“MadeinGermany” As thecore protection element,HENSOLDTCyber developedthefirstGerman logic lock-out The processor: enterprises canconcentrateontheircorebusinesswithoutacare. shorttime.This allows ITspecialiststosleepwellagainatnight,whiletheir within avery processorandanextremelysecureoperatingsystemtoseriesreadiness proprietary year.appearing every To combatthisthreat,HENSOLDTCyberdevelopeditsown billion malwarefamilieshavebeenidentifiedtodate,with100millionmorenewvariants malware alone–programsthatinfiltrateITsystemstospyonordisruptthemovera year,every whiletheattackers’professionalskillshavesteadilyincreased.Inareaof corporate networksinrecentyears,thenumberofcriminalattackshasbeenmultiplying administrators awakeatnight.Besidesthehighlypublicisedattacksongovernmentand The threatofhackerincursionsisgrowingdaily, andregularlykeepsITmanagers

highly secure IT. vehicles alsoincreasingly demand applications suchasautonomous applications, asIndustry4.0andother opens upthedoorforcommercial in Europe. Atthesametime, this cybersecurity inGermanyandalso wants toheraldaneweraof security industry, HENSOLDTCyber IT ecosystemforthedefenceand With thisvisionofcreating aholistic transition tosecure IT. services neededtoensure asmooth organised additionallyoffers all Department thathassincebeen and countries.TheseparateService has beenkeenacross industries “getting started”evaluationkit.Interest HENSOLDT Cyberhasputtogethera easy aspossibleforprospective users, To makeadoptionofthissystemas getting startedmadeeasy The services:

4 INNOVATIONS AT HENSOLDT

054 | 055 4 INNOVATIONS AT HENSOLDT look beyondtheobvious. on ourcustomersand them tofocusconstantly one thatmotivates “constructive disruption”: creating acultureof its employeesin HENSOLDT supports innovation management, Through systematic NEW IDEAS THROUGH SUCCESS

056 | 057 user needs. areas are discovered, orinnovationsserveemerging customerand Existing solutionsare jointlyenhanced,newsolutionsandapplication give risetonewnetworksandutiliseHENSOLDT’s swarmintelligence. innovation project teams.Themostlyinterdisciplinary innovationitems design thinking,Scrumandkanbanboards, andare activelyinductedinto working anddevelopmentmethodsofstart-ups,includingleanstart-up, In theprocess, howtousethepreferred employees alsolearn innovative units andcustomers–inthefifth andfinalstep. product orbusinessmodel–oftenincollaborationwithother concrete formthatitfinallyadvancestobecomeasuccessfulnew or isreleased backintotheideaspool.Itisonlywhenanideahasacquired as abusinessmodelconceptorminimumviableproduct (MVP),ismodified implemented asaninnovationproject. Theideatakesonfurthercontours Once theideahasbeenpassedbyOptronics IdeaBoard, itis colleagues incompilingtheinformationtheyneedtofleshouttheiridea. and generatenewideas.Inthesecondstep,DrSchradersupportsher innovative: Inthefirststep,theyare encouragedtothinkmore creatively rough basicidea.Afive-stepconceptsupportsemployeesinbecoming but ittakescouragetoenvisionandtestwhatisofteninitiallyavery Experimentation andinventionmaybeapartofHENSOLDT’s DNA, Five stepstonewbusiness realised andbroughttomarketinateam. acrossalldepartments.Becausetherearealotofgoodideas.Buttheycanonlybe to everyone by implementinganewinnovationmanagementsystemtobringthe“HENSOLDTWay ofInnovation” market,” believesDrStefanieSchrader, Optronics’InnovationManager. Andsheisfollowingthrough “An inventionbyitselfisnotaninnovation,itmustalsobesuccessfullyimplementedandbroughtto participation in national and international researchconsortia and international innational participation start-up entrepreneursfromarangeof industriesaswell role inthisendeavour. Inparticular, ourregulardialogueswith exchanges withstart-upsandassociations, play anenormous external academicandbusinessnetworks, aswellactive future. Active, regularideascouting, ofvarious involvingsurveys tolook beyondtheobviousandinto Optronics istheimperative HENSOLDT ecosystemat ofournewinnovation One keyfeature New networksandfuturetechnologies “Optische Technologien –PhotonicsBW”. network technologies throughourmembership intheinnovation andotherfuture forquantum technology our internalknow-how successes forHENSOLDTOptronics. Additionally, weexpecttostrengthen sensor arraysareinitialtangible and meshnetworksforcreating withstart-upsontopicssuchassmartsensoring and ourcollaboration witharesearchinstitute toexplorenovellaserapplications cooperation enable ustoidentifyfuturetrendsanddiscovernewideas. Ourclose implement newideas. an innovationecosystemtosuccessfully is takingnewpathsinorder toestablish innovation concept,HENSOLDTOptronics new momentum.Thankstothis and generate embark onaninnovationjourney innovatively requires thecouragetojointly The mostimportantinsight:working are developedthere. and obtaininginsightsintohowinnovations other industries,exchangingexperiences with representatives ofcompaniesfrom from awiderangeofdivisionsmetvirtually of thepandemic,HENSOLDTemployees first-ever InnovationExpedition.Onaccount HENSOLDT teamevenembarkedonits our enterprise.Andinsummer2020,a rich latentinnovationpotentialinherent in newly created opportunitiestoactivatethe More andmore employeesare utilisingthe The firstsuccesseswere notlongincoming. Innovation Expedition 4 INNOVATIONS AT HENSOLDT motto, “OneHENSOLDT”. data –inthespirit ofour from theintelligentuseof and perspectivesderived of theirdiverseexperience and sharingthebenefi ts applications, pooling and enhanceour to continuallyimprove divisions worktogether of itsproducts.Our intelligence inmany already deployingartifi cial HENSOLDT is DATA INTELLIGENT CREATES JOINT LEARNING

058 | 059 synergies thatbenefi t allpartiesanddivisionsalike. scientifi c communityhasledtohighlyproductive This exceptionallytransparent dialoguewiththe new networks,knowledgeandsolutions. Fraunhofer Instituteshaveenabledustocreate University, theUniversityofUlmandvarious Karlsruhe InstituteofTechnology, RWTH Aachen with research establishmentssuchasthe outside thecompanyandintensivedialogue AI initiatives.Direct collaborationwithexperts responded proactively withcross-Divisional HENSOLDT understoodthisearlyon,and of thesedata. and evaluationthatbringsoutthetruevalue data likemore data”.ButitisAI-basedanalysis “big data”,provides thefoundation:“There’s no deliver. Thiswealthofdata,oftenreferred toas advanced thesensorsare, themore datathey marine, air- Andthemore orspaceborne. UV, infrared orvisualspectrum,whetherterrestrial, Every HENSOLDTsensorgeneratesdata–radar, successful together Important foreverydivision– many differentHENSOLDTsensors. human brainlearns.Anidealmethodforintelligentlyusingthediversedatafrom neural networktrainedusingdeeplearningtechnology–inmuchthesamewayasa knowledge withnewinformation,and,ifdesired,evenkeeponlearning,thankstoa are drivingAItowardanenormousbreakthrough.Thesystemcanconnectlearned methods ofdataacquisitionandanalysisofferedbymachinelearningdeep The term“artifi cial intelligence”(AI)wasfi rst coinedbackinthe1950s.Today, new systems provider. as more thanjustavendorofsmartsensors:itisbecoming and identifypotentialthreats inreal time.HENSOLDT isthusemerging make itpossibletoanalyseevencomplexsituationsautomatically entirely new, partiallyautonomousapplications.TheuseofAIwill “smart sensors”,integratedinintelligentoverallsystems,willenable implemented fortheirmissionsonthesensorlevel.Infuture, such phaseiscomplete, thetrainedmodelscanbe Once thelearning and threats usingbroad-basedtechniques. machinelearning toautonomouslydetectsituations In thecourseofthis,sensorslearn analyse therecorded dataandmakeitavailablefor anewtrainingcycle. and dataspecialists,who,thankstotheirsensorexpertise,are ableto customer’s datasovereignty andabeachheadtoourcompany’s sensor creation ofadatabaseinwhich–ifdesired –HENSOLDTshares inthe This shared infrastructure creates twofundamentalprerequisites: the The systemcanevenintegratedataonunknownobjectsofotherforces. processesusable formachine-drivenlearning underoperationalconditions. mission scenariosinastructured andreproducible mannerandmakethem store enormousquantitiesofdatafrom millionsofdiscrete casesofactual ewly emerging ITinfrastructure. Thisinfrastructure makesitpossibleto ofThings(IoT),thisentailslinkingsensorswithan Much asintheInternet one perspective Numerous challenges– 4 INNOVATIONS AT HENSOLDT since there are somanyofthemhappeningatonce. remain undiscovered byeventhemostattentiveobserver the systemrecords activitiesontheground, whichmay kilometres tobemonitored from theair. Atthesametime, in thesensor. Thisallowsasurfacearea ofupto50square suspended from aballoonevaluatesaerialphotosdirectly Imagery” (WAMI), acombinationofcamerasandsensors recognises objectsandanomalies.With“WideArea Motion with additionalassistanceinformationandautomatically for example,AIcombinesall-round 360-degree visibility solutions. IntheSETAS (“SeeThrough ArmourSystem”), However, AIisalsoalready beingimplementedinexisting are required. data andwhichsoftware andhardware architectures technology touse,howprocess vastquantitiesof evolutionary stagestosettleissuessuchaswhich Optronics isalready currently workingthrough various On itswaytobecomingasystemsupplier, HENSOLDT evaluation ofphotoandvideodataissupportedusingAI. entirely on“smartandintelligent”sensorsinwhichthe System”) ortheFCAS(“Future CombatAirSystem”)rely Future projects suchastheMGCS(“MainGround Combat AI Optronics about anyone. by trainedpersonnelandcaninsteadbeusedjust annotated radarimages,whichnolongerrequire analysis In thisway, simplesensor datacanresult inhigh-resolution objects toprovide apicture ofthecurrent threat situation. surface canbeautomaticallyscannedforrelevant target help ofreal andsimulatedtrainingdata,vastareas ofland trained personnel.Thisiswhere AIcomesintoplay. Withthe however, theseimageshadtobeinterpreted byspecially daylight hours,regardless ofweatherconditions.Until now, high-resolution ground imagerytoberecorded during Like visualaerialorsatellitephotos,SARradarsallow distinguished from falsetracks(falsetrackrecognition). can beidentifiedmore easilyandefficiently andcan be being distractedbybirds. Thetracksofmovingtargets them tofocusdirectly ondrones, forexample,without provides theoperatorwithimportantsupport,helping automatic target recognition through radarsignatures already confusing orrequires alotofhumanintervention.Nowadays, the situationalimageryproduced inthiswayrapidlybecomes number ofobjectstobeidentified.WithoutthesupportAI, The highqualityofHENSOLDTradarsallowsanincreasing when visibilityiscompromised byclouds,smokeorrain. Radar systemsprovide imagesoftheairorground even AI Radar

060 | 061 from therapiddevelopmentsmadeinciviliansector. of overlappingtasks,HENSOLDTclearlybenefitshere more resistant todisruptiveprocesses. Onthebasis image tobecreated, whichistherefore significantly sensors thatisutilisedhere allowsafusedsituational various sensors.ThemixofLiDAR,radarandelectro-optical reconnaissance platformscanbebetterprotected using continuously.the systemslearn Forexample,airborne The fieldsofapplicationare practicallyunlimitedsince look like. demonstrated whatthiskindof“smartsensor”might “code camp”withMicrosoft, HENSOLDThasalready sensors” willhaveacrucialrole toplayinthis.Inashared within increasingly shortertimeframes.Tomorrow’s “smart need tobemadebasedonlarge quantitiesofinformation increasingly complexscenarios,inwhichdecisionswill Future fieldsofapplicationwillbecharacterisedby AI Electronic Warfare text andimagery. evaluate large quantitiesofdatainthefieldsspeech, intelligence. Thefocushere to isonusingdeeplearning well asdevelopingnewapplications,suchopen-source groupintends tocontinuesupportinginternal projects, as and AIasoneofitscore tasksatpresent. Accordingly, it sees thedevelopmentofanoverlappingcentre forbigdata ground-breaking newAIapplications.HENSOLDT Ventures support forothergroup projects withthegoalofpioneering experts atHENSOLDTVentures alsoprovide targeted Working closelyalongsidespecialistdepartments,AI instance fortheclose-rangecontrol ofaninterceptor drone. application canbefoundinEdgeAIapplications–for automation, makingtheoperator’s workeasier. Afurther of AIincounter-UAV systemsallowsahigherlevelof proven itspotentialalongtimeago.Inthisway, theuse part ofmanyprojects andproducts, thetechnologyhas HENSOLDT Ventures activities(see4.1).Asanintegral increased useofAIisalsoattheheartrange As a“spearheadofinnovation”inthecompany, the AI HENSOLDTVentures 4 INNOVATIONS AT HENSOLDT HELICOPTERS FOR „IQ“ system forhelicopters mission management HENSOLDT’s other systemsjustcan’t. they offersomuchthat in helicopters,because already beenintegrated such systemshave success. Over5,000 is anunqualified

062 | 063 difficult operationsa“mission possible”. focus entirely ontasking an escortdrone. Thismakes eventhemost an overviewofallsensors,andathird crew membercan,forinstance, in thehelmet.Pilotsare supported inflyingtheaircraft, copilotshave their respective taskviatheir head-downdisplayorprojected directly Each crew memberreceives theinformationtheyneed “rightnow”for on theground, atseaorintheair. result isaholisticoverallsystemthatcannetworkwithothersystems on otheraircraft intheoperationalarea toformacoherent whole.The sensors aredatasuchasweatheror combinedwithexternal a widerangeofflight,surveillance,identification,nightvisionandother radarandinformationfromall necessarydatainasinglesystem.Video, supported, HENSOLDT’s missionmanagementsystempullstogether To ensure thatpilots,copilotsandothercrew membersare optimally are theruleratherthanexception. scenarios, subjecttoextensive,mission-specificadditionalparameters, the stress oncrews. Yet suchcomplexcivilianandmilitarymission they mustperform.Complexmissionscenariosinparticularintensify exceptionally demandingonaccountofthewidevarietytasks For helicoptercrews, the coordinated executionofamissionis “Mission possible” the worldknowhowimportantthisis. digitally communicateandexchangedatawithothersystems.Helicopterpilotsaround andcivilianenvironments.Itcan platform-independent, itcanbeusedinbothmilitary the informationthattheyneed.Developedtomeetciviliancertificationstandardsand precisely meetapplicationrequirements.Itautomaticallydeliverstoeachcrewmember The systemcanbeflexiblycustomisedwithabroadrangeofsoftwaremodulesto This isHENSOLDT’s objectiveindevelopingmissionmanagementsystemsforhelicopters. all importantinformationthattheuserneedsatinstant–andnotasinglebitmore. different sourcestocreateacompletesituationalpicture.Apicturethatideallydelivers A systemistrulyintelligentwhenitcantakeandprocessdatafromawiderangeof accomplished. mission managementoftomorrow. Mission and TigerMk3:ablueprintforthemilitary future platformupgrades e.g. fortheH145M today, andHENSOLDT iscurrently developing a mission-criticalrole inover5,000helicopters deployment profile. Thissystemalready plays type anditsmilitary, paramilitaryorcivilian cockpits inreal time–regardless ofthehelicopter inconceivable situationalawareness tohelicopter Thus, missionmanagementbringspreviously other missionactors. datalinks (TDL)toshare datainreal timewith management cancommunicateviatactical the current generationofmilitary-grademission networks is often sufficient for civilian applications, systems. Whereas alink to4Gor5Gwireless offers aflexiblelinktoexistingcommunication information from widelydiversesources. Italso not onlybecauseofitsabilitytocompiledataand HENSOLDT’s missionmanagementsystemexcels Mission accomplished

4 INNOVATIONS AT HENSOLDT IS MADEOF TOMORROW THE ELEMENT market ofthefuture. strategically important access tothis has nowsecured NEXEYA, HENSOLDT technologies of areas leading– and inmany theinnovative– With energy transition. a successful key elementfor considered a Hydrogen is

064 | 065 with CO of NEXEYA’s GreenHarbour project theysupplyshipsinports Installed aboard emission-free energy shipsand beingapart to buildings,entire industrial plants,ports,airportsanddistricts. in local-area smartmicrogrids, theybringcarbon-neutral energy for solar, windandhydroelectric power. Intelligentlyintegrated weather stationswithenergy orserveaslocal(interim)storage locations, radarinstallations,communicationsantennasand “Smart Energy StorageStations”reliably supplyremote energy storagesolutionsandsupplystations.NEXEYA’s leader inthedevelopmentandproduction ofhydrogen-based NEXEYA –aHENSOLDTcompanysince2019isglobal NEXEYA leader –aninternational of power, heatingandmobility. manner soitcanbefedintothegridasneeded.Theendresultissectorcoupling– hydrogen technologiesmakeitpossibletostorethisenergyinaclimate-neutral that renewableenergytechnologiesdeliverpowerirregularly. However, innovative same timereliable,affordableandenvironmentallycompatible.Onemajorissueis However, wecanonlysucceedherebysecuringenergysourcesthatareatthe Energy transitionplaysacoreroleinallinternationalclimateprotectionefforts. can beimplementedandoffered rapidlyandtargeted precisely. doors tonewmarketsandapplications.Thenecessarysolutions and alsoatEUlevel.Newregulations andstrategiesopenthe pulse ofdevelopmentbothnationallyinFranceandGermany, HENSOLDT andNEXEYA havetheirﬁ ngers constantlyonthe Association forHydrogen andFuelCells(FranceHydrogène), And that’s justthebeginning.AsmembersofFrench the autonomousoperationofdatacentres andentire bases. tovaluableprecursorsubstances. Inthelongterm, emissions, hydrogenwillmakeitpossibletodecarbonise process-related e.g. by convertingCO forfutureproductionprocesses. material raw essentialtonumerouschemicalandindustrialprocessesbeusedasa Itcanreplace theconventionalhydrogenalready Usedinfuelcells, asabasisforsyntheticfuels. itcanenablehydrogen-basedmobilityand serve sourcescannotbeuseddirectly. renewableenergy “Green” from hydrogencancontributedecisivelytosectorcouplinginareaswherepower andthushelptobalancesupplywithdemand. energy Itcanstorerenewablygenerated forasustainablefuture: It opensuparangeofpossibleapplications sourcesisoftenreferred toas usingrenewableenergy Hydrogen generated “green” hydrogen. “Green” transition hydrogenasthekeytoenergy 2 -neutral electricity. Inthedefencesector, theyguarantee (Source: “Die NationaleWasserstoffstrategie –SchlüsselelementderEnergiewende” oftheGermanFederal Government) but are blazingthetrailtotomorrow. HENSOLDT andNEXEYA are notonlykeepingup, transformation ismovingforward atarapidpace. and support,allsignspointtogrowth, astheenergy the future. Withthecurrent politicalencouragement business offers numerous expansionopportunitiesfor While presently stillona modestlevel,thehydrogen hydrogen canalsoopenupnewlinesofbusiness. logistics infrastructure maybenecessarytotransport integration offuelcellsandtheformationwhatever charging infrastructure forthee-mobilityoffuture. The thatcanbeusede.g.tobuildahigh-performance alternative form hydrogen microgrids, theyadditionallyoffer aneconomical hydrogen withvirtuallynoenvironmental impact.Linked to under extreme weatherconditionsandgenerate“green” They canbemodularlyintegratedinexistingnetworkseven they offer supplygrids. monthsofindependencefrom external which are already inservice.Withtheirvaststoragecapacity, complete systemsforproducing, storingandproviding energy, Current projects withgreat potentialincludetheautonomous New products fornewmarkets 2 emissions 4 INNOVATIONS AT HENSOLDT PRINTING IS INTHE THE PROOF innovation leader. even asaglobal in someapplications production – development and deploying itfor we arealready At HENSOLDT, with 3Dprinting. experimenting the worldare players around Major high-tech

066 | 067 and integrationdensityare enhanced. components are more compact,yettheirperformance the availablespacewithoutrestrictions. Theprinted The electronic structures themselvescanalsobefi tted to to utilisetheavailablePCboard spacemuchmore effi ciently. components. Thenewprocess notonlymakesitpossible and reliability, farbeyondthecapabilityofcommercial-grade solutions demandextremely highlevelsofperformance in onegiantleapforHENSOLDT, asmilitarysensor What soundslikeonesmallstepwillpotentiallyculminate functions andproducts. jointly enhancedtechnologywillenableentirely novel within circuit carriers.Even now, itisapparent thatthe on developingandfabricatingthree-dimensional structures for useinfuture products. However, theactualfocusis in signifi cantly improving thestabilityofprocesses means thatHENSOLDThasbeenplayinganactiverole and printedelectronics (PE)–thatcommencedin2016 number-one inadditivelymanufactured electronics (AME) with theIsraelienterpriseNanoDimension– in theprintingofelectronic 3Dstructures. Ourcollaboration Today, HENSOLDThasrisentobecomeagloballeader of electronic 3Dstructures Innovation leaderintheadditivefabrication successfully inawiderangeofdevelopmentandproductionprocesses. HENSOLDT recognisedthispotentialearlyon,andhassinceintegrated3Dprinting aerospace industries–areexperimentingwiththepossibilities,processesandmaterials. including thebignamesinconsumerelectronics,computer, automotiveand plays alargelysubordinatedroleinthegeneralperception,enterprisesaroundworld– is beingrecognisedasatechnologicalrevolutionthatwillreshapetheworld.Althoughit Already, three-dimensionalprintingofpartsandhigh-performanceelectroniccomponents to supportproduction, e.g. forfi xtures andtools. radar. Thesetechnologiesare alsobeingusedsuccessfully ground-based radarunits Spexer, TRML-4DandtheCobra current airsurveillanceradar (ASR)system,andforits additive manufacturingprocesses inproducing partsofits Thus, HENSOLDTisalready deploying3Dprintingand Fit forthefuture screening. effi ciently whileatthesametimeproviding electromagnetic With theircomplexcavitystructures, theycoolmore that simplycannotbefabricatedbyconventionalmeans. create aluminiumradiatorelementsforradartransmitters today. Forexample,thistechnologymakesitpossibleto and time-consuming3Dmetalprintingregularly inproduction HENSOLDT isalsousingtheextremely cost-intensive development process. design andfunctionality. Thisacceleratestheentire can beprintedsimplyandrapidlytoenablereview of printing plasticstocreate prototypes. True-to-scale models Concurrently, HENSOLDThasforseveralyearsbeen3D 3D printingofmetalsandplastics 4 INNOVATIONS AT HENSOLDT AND JAMMING The newAESAEW from HENSOLDT usually designed scanned, itcan receive signals. to transmitand goes acritical Antennas are enemy radar. Electronically SEEING step further. even jam

068 | 069 deliberately jamthem. thus intercept enemysignalsandeven before. Itcanreceive constantly, and transmit andreceive brief signals,as signifi cantly expanded.Itcannotonly Yet itsperformancespectrumis conventional antennas. is alsoonlymarginally larger than environmentally friendlycoolant,it 3D printingprocess. Boastingan fabricated inaninnovativemetallic with thenecessaryradiatorelements, new HENSOLDTAESAEWisequipped Problem defi ned –problem solved.The device footprintsandextensivecooling. transmission poweroutputrequires larger can belocalised.Additionally, aconstant receive onlybriefl y because theirsignals often “off” than“on”.Theytransmitand aircraft especially, radarantennasare more Particularly inthemilitarysector, andin Three functions–oneantenna receive signalsbutcanalsoactivelyjamwhenelectronicallyscanned. as acoreelementoftheKalætronAttackproductfamily, thatcannotonlytransmitand continuing developmentpayoff.HENSOLDThassucceededindesigninganantenna (AESA EW)antenna,HENSOLDTisoncemoreprovingthatongoingresearchand itsnew“ActiveElectronicallyScannedArrayElectronicWarfare”control applications.With reconnaissance,defenceandairtraffi surveillance, in innumerablecivilianandmilitary c many yearsnow. Ontheground,atsea,inairandevenspace,theyperform reliably HENSOLDT hasbeenrecognisedasaglobaltechnologyleaderforradarsystems attackers remain truly“blind anddeaf”. Thus, onceagain,HENSOLDTtechnologyensures thatpotential function inasingleantenna. and self-protection jammer) togetherwiththeconventionalreceiver Kalætron Attackproduct family(stand-off jammer, escortjammer In sum,theAESAEWantennabundlesthree functionsofthe while remaining outofrange ofattacks. as astand-off jammer, disruptingradarandcommunicationsignals fi xed-location ground installation,theantennacouldalsofunction missile attacksbyjammingtheirdetectionradar. Asalow-cost, shield othermannedorunmannedaircraft andground unitsfrom radar signalstoprotect the aircraft itself,butalso,forexample,to installed e.g.inanescortjammerpod,couldeffectively disruptenemy In thecurrently plannedEurofi ghter update,the AESAEWantenna, also conceivable. use aboard aircraft, ship-board andground deploymentare Starting withtheextremely complexcertifi cation process for several yearsofdevelopmentbackedbydecadesexperience. keen interest inHENSOLDT’s latestinnovation, theproduct of Multiple NATO memberstatesandallieshave already expressed One antenna–diverseapplications 4 INNOVATIONS AT HENSOLDT AWARENESS SITUATIONAL ENHANCING

well received. attention andis This attractsworldwide on collisionwarning. but onconcentrating data aspossible, displaying asmuch is nolongeron on itshead.Thefocus for marineradars existing philosophy turns thecurrently HENSOLDT UK developed by The MantaNEO

070 | 071 and displayedasneeded. data from othersensors can beintegrated,configured approach,to learn additionalnavigationdevicesand the entire screen. anapp-based,intuitiveandeasy Via The primaryfocusisontheradardisplay–takingup also suitableforguidingautonomousshipsfrom land. smartphone displays.More thanthat,MantaNEOis information theyare accustomedtofrom usingtheir provides usersquickandeasyaccesstoallimportant has beencreated. Onnew multifunctionaldisplays,it mobile phoneprocessors, asimplifiedmenustructure software structure. BasedontheAndroid platformand our developersdecidedtoimplementacompletelynew display containingavarietyofinformationmore flexible, to makethecurrent statusquoofa“locked”screen challenges forthedevelopersatHENSOLDTUK.Inorder What appearssimpleatafirstglanceledtoenormous Simple andclear Everything elsecan–ifrequiredbeblendedinandoutasanadditionalelement. Everything somewhat hidden,HENSOLDT’s MantaNEOfocusesprimarilyonthisparticulardisplay. this purposewas„only“visibleaspartofnumerousotherpiecesinformationand super yachts.Whileonpreviousnavigationscreens,theradardisplayrequiredfor and istheperfecttooltosupportnavigatorsoflargemerchantcruiseshipsor importance forthenavigator. MantaNEOoffersprecisemappingofallmaritimeactivities In today’s congestedshippinglines,maintainingsituationalawarenessisofutmost planned forthesecondquarterof2021. positive response, themarketlaunchofMantaNEOis potential customersandshipyards withacorrespondingly Following preliminary presentations attradefairsand to 30,000 shipsworldwide. in themarket:onethatoffers enormouspotential,witharound good accesstoandanexcellent,long-standing,reputation As thepredecessor ofHENSOLDT UK,KelvinHugheshasvery requirements MaritimeOrganisation oftheInternational (IMO). as thesystemcanbeintegratedonallshipsthatmeet As anextstep,themarketformerchant shipswillbetargeted, and safetyrequirements. owners andatthesametimesatisfiesclients‘highsecurity user-friendly design,MantaNEOmeetsthewishesofmany is ontheboomingsectorofmegaandluxuryyachts.Withits ships, inwhichthesystemcanalsoberetrofitted, a firstfocus and target groups inthenon-defencesector. Inadditiontocruise For HENSOLDT, theMantaNEOopensupaccesstonewmarkets New markets,newtargetgroups

4 INNOVATIONS AT HENSOLDT supplier intheareasofradar, challenging navalmissions. High-performance sensors maritime missionsystems and defenceelectronics. OCEAN-GOING a primeexample ofthis. HENSOLDT isaleading datalinks, electro-optics of highlydiversesensor ADDED VALUE identiﬁcation friend-foe, role inthesuccessof and thusplayavital solutions consisting Integrated maritime combinations are are akeypartof

072 | 073 patrol vesselsoftheFrench Navy. the chosenvendorinitshomemarket,receiving anorder toequipdeepsea centres onshore. Thisflexibilityispayingoff, asin2020,NEXEYA became patrol boats,deepseapatrol vesselsandsurveillanceunitsaswellcommand in arangeofbaseversions,LYNCEA isthusidealfordeployment aboard fast areas, combatinghuman trafficking, rescue missionsandmuchmore. Available an extremely widerange of missionscenarios,suchassurveillancemaritime in NATO datalinks.Withitsergonomic, easy-to-use userinterface,itisidealfor to sonarandelectronic warfare elements,andevenpermitsoptionalintegration picture onthebasisofabroad rangeofinputs:from radarandoptronic devices Modular indesignandexpandablesteps,itgeneratesatacticalsituational LYNCEA, theflexiblemissionsystemfrom NEXEYA, isaperfectexample. Compact solutionsforsmallvessels underwater sensorsisnowalsopossible. solutions ofthefuture, smaller, innovativeintegrationofvarioussurfaceand potential andcustomergroups. Inadditiontothemajor, broad-spectrum system in France(NEXEYA) andtheUK(KelvinHughes)haveopenedupnewmarket Particularly inthearea ofintegratedmaritimesolutions,HENSOLDT’s acquisitions with customersbefore offering acorresponding solutionspectrum. products are selected,ourexpertssystematicallydiscuss operationalrequirements firmly oncustomersandprospects andtheirneeds.Longbefore individual departments takeacross-divisional approach toworkandactwiththeirfocus Here too,HENSOLDT’s segmentapproach onceagainproves superior. All On andbeneaththewaves evaluation andconnectiontotacticaldatalinks. to theseamlessinteractionofindividualcomponentstogetherwithdataanalyticsand products, suchcombinedoverallsystemsofferdecisiveaddedvalueforcustomersthanks such asradars,customerstodayincreasinglywantcompletesolutions.Comprisingmultiple The marketischanging.Whereasitusedtobedrivenbythedemandforindividualsystems, as awhole. customers andourenterprise divisions. To thebenefitofour spectrum ofoptionsacross all makes itpossibletooffer abroad understanding across alldomains domain approach: acomprehensive and projects underHENSOLDT’s future betrueforallourproducts are already proving whatwillin Our integratedmaritimesolutions from theUK(HENSOLDTUK). France (NEXEYA) andanIrishcustomer customer canbeserveddirectly from when, forinstance,aNorthAfrican globalisation, itremains anadvantage Because inspiteoftoday’s intense also playsadecisiverole. intimacy withpotentialprospects to matchcustomerneeds, flexibly andefficiently configured Alongside solutionsthatcanbe Rapid andclosetocustomers

5 HENSOLDT SUSTAINABILITY REPORT

074 | 075 5 HENSOLDT SUSTAINABILITY REPORT Chief ExecutiveOfﬁcer Thomas Müller HENSOLDT AG

076 | 077 Munich, 14April2021 HENSOLDT AG Chief ExecutiveOfficer Thomas Müller Yours truly, I hopeyoufindthisreport asenlighteningIdid. even furtherinthecomingyears. a dedicatedsustainabilitystrategyinorder toexpandoursustainabilitymanagement grow ifweare tofullymeetyourdemandingexpectationsofus.We havethusdeveloped We havealready achievedagreat dealtogether. Butwemustcontinuetoimprove and promote acorporateculture ofintegrity. our socialcohesion,helpemployeesrealise theirpotentialandtopreserve and ourselves andwhatobligationswehaveundertakentoprotect ourplanet,strengthen elements ofourcorporateculture. whatgoalswehaveset Butyouwillalsolearn treatment ofouremployeesandethicalenterprisemanagementhavealwaysbeenkey As youcanread inthefollowingpages,protection ofnaturalresources, theresponsible towards providing accountabilityforourbusiness activities withinthesethree dimensions. With thisfirst-eversustainabilityreport, weatHENSOLDTare takingafurtherstep (ESG)isahighlyvalued attribute intoday’sgovernance world. and responsible approach bycompaniestoissues ofenvironmental, socialandcorporate by hard numbersalone.Ifthere isonethingthat2020 taughtus,itisthatasustainable launched itssuccessfulIPO.Butacompany’s capital-marketcapabilityisnotdecided For ourenterpriseaswell,2020wasayearofgreat changes.InSeptember, HENSOLDT sustainable world. merely toassertourstanding;wealsocontributeactivelytoward developingamore employees, ourcustomers,businesspartnersandshareholders. Thisisnot decency havealwaysbeenHENSOLDT’s bedrock. We assumeresponsibility toour The prioritiesofourcompanyhaveinnowaychanged.Proportion, mindfulnessand to mehowuniqueandprecious ourlivesandenvironment are. our society is and we as individuals are. The moments of deceleration have brought home enormous socialandeconomicdisparitiesdramaticallyhighlightedhowvulnerable with extraordinary challengesthathavestillnotabated.TheCOVID-19virushasrevealed The lastfiscalyearwascharacterisedbyaglobalpandemicthatconfronted theworld Dear readers, 5 HENSOLDT SUSTAINABILITY REPORT Group SustainabilityOffi cer HENSOLDT AG Sarah Sterzl

078 | 079 Sarah Sterzl, GroupSustainabilityOfficer and makingadifferencetogether.” contribution toourplanet, animalsandhumankind. We standforcreatingachangeinourmindsets “Sustainability isinourDNA. OurcorporatecultureenablesallHENSOLDTians toactivelymakea in lightgreen inthebodytextandGRIPerformanceTable. by KPMGAGWirtschaftsprüfungsgesellschaft(limitedassurance)andhighlighted Material non-fi nancial informationpursuant toSec.289cHGBhasbeenaudited I.1 BusinessmodelandI.2Organisation andinfrastructure. Our businessmodelissetoutintheManagementReportunder the sustainabilityteam,customers,banks,investorsandsuppliers(see5.1). requirements. Allrelevant stakeholderswere involved,i.e.management,employees, according totheGRIstandards andtheCSRDirective ImplementationAct(CSR-RUG) To determinethematerialsustainabilitycriteria,amaterialityanalysiswasconducted period corresponds tothe2020fi scal year. orientation withtheGlobalReportingInitiative(GRI)standards (2016).Thereporting to theHGBrequirements, HENSOLDTchosetoprepare itssustainabilityreport in information pursuanttoSec.289,315GermanCommercial Code(HGB).Inaddition With thisreport, HENSOLDTisfulfi lling itsobligationtodisclosenon-fi nancial https://www.hensoldt.net. on thecompany’s activities.Thereport canbefoundonlineat In future, HENSOLDTwillpublishagroup-wide sustainabilityreport corporate governance. of allactivitiestheHENSOLDTGroup intheareas ofenvironmental, socialand HENSOLDT ispublishingitsfi rst-ever sustainabilityreport toinformitsstakeholders Sustainability isacore partofHENSOLDT’s corporateculture. InApril2021, About thisreport 5 HENSOLDT SUSTAINABILITY REPORT excellence, responsibility values forallemployees, top managementintheir success rests.Theyare on whichHENSOLDT’s considered immutable and areexercisedby role-model function. these arethepillars long-term business LIVING OUR and innovation– Cooperation, VALUES

080 | 081 opportunities within theenterpriseandhasset itselfthe special effort tooffer andpromote diversityand equal corresponding remuneration, HENSOLDTmakesa impacts. external management categorywasimplementedtoassess day-to-day businesspractices.To thisend,anewrisk the environment andsocietyinitsriskmanagement and datamanagement. and qualitymanagementaswellefficient configuration throughout theenterprise bymeansofeffective business by aqualitystrategyandpolicythatisconveyed and otherillegalactions. systemtosafeguardenterprise-internal againstcorruption and otherpartners.Italsoformsthebasisforour within theenterpriseaswellwithcustomers,suppliers out theground rulesforproductive, respectful collaboration business success.To thisend,ourCodeofConductsets Board”), ispursuingambitiousgoals: GRI andtheSASB(“SustainabilityAccountingStandards under considerationofsuchmultinationalframeworksasthe every day”.Theholisticsustainabilityprogramme, launched in itscorporateculture underthemotto,“setanexample issues ofenvironmental, socialandcorporategovernance strong leadership.HENSOLDThasfirmlyembeddedthe An enterprisecanonlyfunction,succeedandabidewith Practised andexemplifiedeveryday German CorporateGovernanceCode. Our companyalsocomplieswiththerecommendationsandsuggestionsof and financialmarkets,businesspartners,employeesthepublicinHENSOLDTGroup. Firmly embeddedinourenterprisestrategyandactivities,theypromotethetrustofinvestors responsibility andtheintegrityofourbusinesspracticesleadership,ensurefuturesuccess. unify ourenterpriseasacohesiveentityand,withtheiremphasisonsustainability, ethical a responsible,transparentandsustainablegrowthofthevalueourenterprise.Theseprinciples management andcontrollingofourenterpriseremainconsistentlyorientedtowardensuring The principlesofgoodcorporategovernanceactasabindingelementtoensurethatthe At HENSOLDT, corporategovernancecomprisesallleadershipstructures,processesanddirectives. In additiontocompetitiveworking conditionsand HENSOLDT takesresponsibility foritsemployees, The excellenceofourenterpriseistobeassured Corporate integrityformsacore pillarofHENSOLDT’s

increase further inthecomingyears. willonly significance ofvalue-oriented corporategovernance success. Enterprisemanagement isfullyaware thatthe already makinganimportantcontributiontoHENSOLDT’s Thecompany’sgovernance. todayis corporategovernance standards and international ofgoodsustainablecorporate HENSOLDT notmerely strives tomeettomorrow’s national (“Health, SafetyandEnvironment”). and rigorously HSE-manual onthebasis ofourinternal all statutoryandoperationalregulations ismonitored continually of paperandhazardous component substances.Compliancewith as wellthereduction of wasteflows,alongwiththeconsumption renewable energy sources, thisincludesenergy savingactions in allrelevant enterpriseprocesses. Inadditiontoinvesting in rigorously monitored inalldivisions. This isnaturallybeingimplementedthroughout ourenterpriseand resources andhazardous substancesmindfullyandresponsibly. and climate.Ourenterprisehascommittedtousinghandling a long-termperspectiveintheirhomecountry. career trainingandcontinuingeducationsothattheycanattain we are currently supportinglocalengineersinSouth Africaintheir goal ofsupportinginitiativesandtalentsworld-wide.Forexample, women inourgloballeadershipteamto25percent by2024. the ExecutiveCommitteeto35percent andtheproportion of positions. Theaimistoincrease theproportion of women on goal ofsignificantlyincreasing theproportion ofwomeninexecutive Actions toavoidandreduce emissionsare tobeimplemented HENSOLDT placesahighpriorityonprotecting theenvironment As aresponsible employer,HENSOLDThassetitselfthe

5 HENSOLDT SUSTAINABILITY REPORT processes andpractiseddaily slogan “HENSOLDTprovides at HENSOLDT. Becauseour responsibly inallsituations sustainability management enterprise valuesthatare EXPECTATIONS form thebasisforacting only toourproductsbut to ourenterprise-wide ﬁ rmly embeddedinall Strategically identiﬁ ed solutions” appliesnot system aswell. GREAT

082 | 083 substantial investmentsanddeepcommitment. be continuallyrefi ned andimproved through HENSOLDT’s sustainability managementisto report, basedontheGRI standards, in2021. company ispublishingitsfi rst sustainability out inaSustainabilityCharter. Finally, the objectives, prioritiesandobligationswere set HENSOLDT’sand localgovernments. vision, investors, customers,suppliers,associations stakeholders –employees,management, communication withallofthecompany’s issues wasprepared forthefi rst time,inclose materiality analysiscoveringallmajorsustainability sites.Acomprehensivebetween ourinternational various linedepartmentswithintheenterpriseand on improving thecollaborationbetween as acentralcoordinating body. Theemphasis is Steering Committee,undertheBoard’s leadership, Manager nowoverseesallactivitiesjointlywitha the newlycreated functionGroup Sustainability With thesupportofBoard andthedivisions, HENSOLDT’s sustainability management From goodtobetter– dramatically in2020,withtheaimofbeingamongbesthere,too. always beenanintegralpartofallactivitiesatHENSOLDT. Thiswasexpanded Comprehensive sustainabilitymanagementthatcoversallESGelementshas Thomas Müller, ChiefExecutiveOfficer, HENSOLDTAG of theirpersonallivesandcareersareactivelyconcernedforwell-being.” in workinganexciting internationalhigh-techenvironment. Wephase offerthemabroadselectionofindividualizedoptionsforevery biodiversity throughinnovative solutionsfordefenceandsecurity. Ourpeopleareourmostvaluable resource, andwetakepleasure customers’ successasapreferredglobalpartner. We wanttomakeamajorcontributionprotectingnations, peopleandglobal “We arepassionateaboutthepioneeringworkwe’redoingindevelopingcompetitivepremiumsensorsandstrivingtosupportour as welldiversitywithintheenterprise. include product responsibility andongoingemployeedevelopment and safetywere identifi ed askeyissues.Furtherareas ofemphasis In thecurrent iterationof the analysis,businessintegrityandhealth severe negativeimpactson thenon-fi nancial aspects. relationships orproducts thathaveorwillahighlikelihoodof reporting arisingfrom ourownbusinessactivityorfrom anybusiness the riskanalysisdidnotidentifyanysignifi cant risksasof the dateof risk management(ERM)process. Withrespect to the materialissues, and risksopportunitieswere analysedbymeansofanenterprise Concepts were prepared forthematerialissuesidentifi ed inthematrix, making aidandasthefoundationforHENSOLDT’s sustainabilitystrategy. As aguideforfuture action,thematrixservesasanimportantdecision- basis oftheresults ofamanagementmeeting. with theinvolvementofallrelevant stakeholders,andfi nalised onthe in orientationwiththeGRIstandards andtheCSR-RUG,carriedout The three-dimensional matrixofthematerialityanalysiswasprepared of individualareas, andexamineshowtheyinteractwitheachother. HENSOLDT deemsrelevant tobusiness,clearlysetsouttherelevance the highestpriority. Additionally, theanalysisidentifi es theissuesthat decision-making processes ofthestakeholdergroups, are accorded economy, societyandtheenvironment, andthose mostaffected bythe issues where HENSOLDT’s activitieshavethegreatest impactonthe The purposeofthecurrent materialityanalysisistoensure thatthe The HENSOLDTmaterialityanalysis 5 HENSOLDT SUSTAINABILITY REPORT of ourplanet,nature, andourlives.” the higherpurposeofsecuringfreedom andfuture all kindofspeciesworldwide.Ouractivitiesshallserve and humanpotentialthatpromote theprotection of “We atHENSOLDTexisttopioneertechnologies the enterprise. the purpose,objectives,prioritiesandobligationsof The newHENSOLDTSustainabilityCharterdefi nes The HENSOLDTSustainabilityCharter The materialityanalysiswillbecontinuouslyassessed,updatedandadapted. IMPORTANCE TO STAKEHOLDERS

medium high highest medium Resources Planet and Responsible Sourcing IMPACT OFHENSOLDT Community Relations high Responsibility Product Potential Human and cohesion. culture ofintegrityandsupportingsocialinteraction of ouremployees,preserving andpromoting acorporate making oursocietiesmore resilient, realising the potential The companyiscommittedtoprotecting theplanet, From theseobjectives,HENSOLDT derivesclearpriorities. ourresources. societaldemandsbyﬁ nding solutionstoconserve Minimizingourecologicalfootprintandanswering 3. thepioneersoftomorrow. byleveragingourhumanpotentialandcaptivating Creating aplatformfor ingenuityandexcellence 2. state-of-the-artinnovationandsustainability. Expandingourproduct andsolutionsportfoliobycombining 1. three clearlydeﬁ ned objectives: At HENSOLDT, sustainabilitymanagementpursues The objectivesandprioritiesofourenterprise HENSOLDT’s self-concept Health and Safety Business Integrity highest Bubble Size Relevance Business indicates

084 | 085 and eventodevelopsolutionsthatcontributetheprotection oftheplanet. We are committed toreduce environmental impactsofouroperations andproducts, conserve ourresources Environment and alsoencourageouremployeestoengageinvoluntarywork. Eager tofosterrelationships withcommunitiesclosetooursites,wesupportlocalorganizations around theglobe Corporate Citizenship this culture everyday. integrity, ourmanagementcommitstoimplementaculture ofresponsibility downtotheindividualemployeeliving and regulations butalsowithourhighethicalstandards atalltimes.Guidedbyprinciplesoftransparency and Our complianceprogram seekstoensure thatHENSOLDT’s businesspracticesare notonlyinlinewithlaws Compliance, Anti-CorruptionandBribery Complianceandotherrulesprocesses.our internal people involvediskeytous,weprotect peopleandthebusinessthrough health&safetyinitiativesaswell We ensure highstandards oflaborconditionsandrespectful conducttowards oneanother. Thewell-beingofall Respect forHumanRights nurtures creativity, ingenuityandhighperformance. We secure equalopportunitiesandvalueeachindividualbecauseuniqueness inaninclusiveworkenvironment Equal Opportunities We experiencesthroughout embracejoyfulandindividuallearning allstagesoflife. We encourageourpeopletogrow personallyandprofessionally andpavethewayforpioneersinventivespirits. People Development,Training andEducation In addition,weare keentouseourtechnologyprotect ournature orcontributetothedevelopmentofoursociety. improvements, themanagementofmaterialsandpromotion ofinnovationensure thatweachieveourgoal. Through ourstrictexportcompliance,wetakeresponsibility fortheuseofourproducts. Constantsafety Our products shalldetectthreats, secure safety, andfurther, protect those,whocommittedtoprotect us. Product Responsibility In linewithourcorporatevalues,HENSOLDTundertakesthefollowingcommitments: The entrepreneurial obligations 5 HENSOLDT SUSTAINABILITY REPORT

086 | 087 RESPONSIBLE BUSINESS BUSINESS INTEGRITY PRACTICES AND

5 HENSOLDT SUSTAINABILITY REPORT approach. a strictzero-tolerance the companypursues is diametricallyopposed: anti-corruption, ourattitude to complianceand may be.Whenitcomes miniscule thoughthey subject totolerances– physical nature,always are, bytheirtechnicaland HENSOLDT’s products TOLERANCE ZERO

088 | 089 programme totheirsubordinates. and are calledtoactivelycommunicatethesignifi cance ofthe risks. Executivesare involvedinallfacetsofourcompliance programme employee andheightentheirawareness sothattheycanbetterrecognise One keyaspectistostrengthen theindividualresponsibility ofeach and requirements oftheCodeConductandother complianceregulations. All employeesregularly receive informationandtrainingastothecontent of theanalysisare presented totheBoard andtheExecutiveCommittee. a day. Noseriouscaseswere reported intheyearunderreview. Theresults HENSOLDT OpenLine,aplatformthatpermitsanonymousreporting 24hours supervisors, employeesalsohavetheoptionofreporting themviathe In additiontoreporting possiblysuspiciousactivitiesdirectly totheir the CodeofConductalsochallengesallemployeestocommunicateopenly. Sourcing oursupplierrelationships. Policygoverns Asoneofitsmaintenets, (CDDD) appliesfordealingswithcustomersandpartners,whiletheCSR cooperation.TheCounterpartyDueDiligenceDirective rules forinternal It setsouttheirgeneralrightsandobligationsdefi nes mandatorybasic companies, regardless oftheirlocation,positionin theenterprise,ordivision. The sameCodeofConductappliestoallemployeesHENSOLDT Our foundation:TheHENSOLDTCodeofConduct violations oflawsandregulations. is toensureethicallycorrectactiononalllevelsofourbusinessandsystematicallyprevent as wellHENSOLDT’s customers,througharigorouszero-toleranceapproach.The aim element ofourGroupculture,itprotectsemployees,thecompanyanditsreputation, of acomprehensivecomplianceprogramme.Asthebasisforallbusinessactivitiesandcore responsibility, andinnovation.Thesefourpillarsthemselvesstandontheunshakeablefoundation HENSOLDT’s businessisnotonlybasedonthefourprinciplesofcooperation,excellence, Solms Wittig, GeneralCounsel, HENSOLDTAG the highestprofessionalstandards.” must adhereworld-wide. We considerourselvesobligatedtoconform integrity. Itdescribesminimumstandardstowhicheachofouremployees “HENSOLDT’s CodeofConductisthekeystoneourcommitmentto Thomas Müller, ChiefExecutiveOfficer, HENSOLDTAG “We’re convincedthatacultureofintegritycontributesdecisivelytoincreasingourglobalcompetitiveness.” part ofourdailypractice. merely windowdressing, butanessential importance: HENSOLDT’s valuesare not across alllevelsandregions isofparamount as well,dealingrespectfully withoneanother with businesspartners.Withintheenterprise standardswith international inourdealings Directive additionallyapply toensure compliance Organisation andtheCounterpartyDueDiligence the directives Labour oftheInternational The supplierself-assessmentaccording to on FundamentalPrinciplesandRightsatWork. LabourOrganisationInternational Declaration for MultinationalEnterprisesandthe Business Transactions, theOECDGuidelines Bribery ofForeign PublicOffi cials inInternational Rights, theOECDConventiononCombating including theUniversalDeclarationofHuman out incharters,declarationsandguidelines, recognisedinternationally standards asset HENSOLDT iscommittedcorrespond to the enterprise.Thevaluesandpracticestowhich upholding humanrights–bothwithinandoutside of ConductassertsHENSOLDT’s commitmentto rights. Asagenerallyapplicablecodex,theCode obligationstoprotectwith ourinternational human HENSOLDT placesahighpriorityoncomplying Respect forhumanrights 5 HENSOLDT SUSTAINABILITY REPORT applicable CDDDandcompliancerules. transactions andcommitmentswithrespect tothe and HeadofCompliance,thisbodyassessesproposed BusinessDevelopment, GeneralCounsel International transactions. ConsistingoftheCEO,CFO,Head also beenformedespeciallytoreview particularlyrisky it withthenecessaryresources. Avalidationcommittee has Compliance Team substantiallyinrecent yearsandprovided of theCDDD,HENSOLDThasexpandeditsinternal To ensure compliancewithallrulesandtheimplementation and transaction-related risksofacase. and dutiesofcare withrespect tothespecificregional business partnersandcontainsspecialrulesofconduct in asearly2018,formsthebasisforalldealingswith The CounterpartyDueDiligenceDirective, implemented clearly definedrulesregarding giftsandinvitations. agreement. Allemployeesmustalsoadhere toidentical, The sameappliesforeveryformofcompensation they are monitored strictlyandavoidedwherever possible. prerequisites applyforcontingency-feeagreements; this meanswaiving(new)business.Extremely strict and ourstrictrisktoleranceare declined–evenwhere Deals thatare irreconcilable withHENSOLDT’s values risks atalltimes. audits.Theaimistominimize corruption with internal Counterparty DueDiligenceDirective (CDDD)along due care. Thisiseffected through HENSOLDT’s anti-corruption guidelinespracticallyandwith for assessingtheriskofnon-compliancewith third parties,wehavedevelopedaspecialsystem arising from dealingswithcommercial agentsand policy. Withaspecialfocusoncorruptionrisks passive, through anuncompromising zero tolerance regardless ofwhetherpublicorprivate,active as high.HENSOLDTrejects allformsofcorruption, defence segment,whichreceives particularpublicscrutiny, HENSOLDT hasrealized theriskofcorruptionin 1. Anti-corruption Compliance Programme Core areas oftheHENSOLDT

090 | 091 within theparametersofrespectively validrules. conduct, aimstoensure successfulexportbusiness compliance regulations andstandards forbusiness anti-corruption directive, theCDDDandallother procedures, includingananti-boycottguideline, Compliance withallnecessarydirectives and export permitstotheresponsible authorities. Group level,andforwards individualapplicationsfor control andrisksofeconomicsanctionsonthe individual transactionsfrom theperspectiveofexport the generallyapplicableregulations, monitorsthe moratoriums, Group ExportCompliancedisseminates To approval complywithgovernment requirements and numerous salesandexportrestrictions andcontrols. HENSOLDT’s businessissubjectto international 3. Exportcompliance to ITanddataprotection. Ofﬁcers asthemainpointsofcontactforallissuesrelating Employees are supportedinthisbyourownDataProtection against attacks. employees toprotect dataandinformationsystems General DataProtection Regulation(GDPR),demandsall valid DataProtection Directive, whichcomplieswiththeEU with employeesandbusinesspartners.Ourown,globally of morallyabove-board andextremely mindfuldealings complying withlegalrequirements: itisalsoanexpression At HENSOLDT, dataprotection meansmore thanjust 2. Dataprotection canbefoundunderSustainability * the motto“Onlyhonestbusiness issustainablebusiness”. ensure thelong-termsuccess ofthecompany, inlinewith be achievedifeachindividualdoestheirpart.Theaimisto activities onitsemployees,ascomprehensive integritycanonly HENSOLDT consistentlyplacesthefocusofallitscompliance 6. Focusonthehumanelement suppliers were excluded on thebasisoftheirself-assessments. sustainable. In2020,there were nocasesonrecord inwhich develop thesupplychainfurthertomakeitevenmore an integralpartofSupplyChainManagementwillinfuture self-assessment, anadditionalSupplierCodeofConductas While theseare currently queriedandmonitored viaasupplier hazardous substances. occupational safety, health,environmental protection and Additional deﬁned,strictrequirements applyinthe areas of prevent thecriminalexploitationoflabour, formafurtherpillar. SlaveryAct2015*to such astheUnitedKingdomModern labour, childlabouranddiscrimination.Nationalprovisions, Labour Organization (ILO),suchastheprohibition offorced regulations andconventionsoftheOECDInternational the purchasing termsandconditionscontaintheinternational as humanrightsandlabourlaw. To thisend,theguidelinesfor that thecompanyhasadoptedwithrespect toissuessuch business partnersthattheycomplywiththeglobalstandards HENSOLDT alsoexpectsandactivelydemandsofallits 5. Involvementofoursupplychain all monopolyandcompetitionregulations. advise andtrainallemployeestoensure compliancewith published mandatoryrequirements andguidelines;they business transaction.TheComplianceandLegalunitshave HENSOLDT employeesandformsthebasisforevery Compliance withtheselawsisthetaskanddutyofall and are overseenbynationalandsupranationalauthorities. monopoly statutesthatprotect diverseandfree competition HENSOLDT issubjecttoawidevarietyofcompetitionand 4. Monopolyandcompetitionlaw Modern SlaveryActStatementofHENSOLDTAG TheModern | HENSOLDT 5 HENSOLDT SUSTAINABILITY REPORT ever-increasing, andinmany digitalization isbeingutilised Securing ourdigitalviability customers isavitaltask. to enhancesustainability and thusalsoprotecting HENSOLDT’s numerous sectors decisive,rolein DATA SECURE the intellectualproperty of thecompanyandits infrastructure playan digitalization actions. At thesametime, in manyareas. KEEPING Data andIT

092 | 093 standard ofglobaldata protection. Protection Regulation,forming thebasisforcompany’s high on legalrequirementsandinlinewiththeEuropean GeneralData HENSOLDT’s dataprotectionpolicies andmeasuresarebased means ofteststhatsimulatedphishingattacks. posted ontheintranet,andsuccesswasdocumentedby trainingmoduleswerealso campaign in2020.Mandatory HENSOLDT launchedacomprehensivecybersecurityawareness To makeemployeesevenmoremindfulofpossible risks, Because thehumanfactorpresentsgreatestriskpotential. and onthe(new)challengesofdata-drivenbusinessmodels. sensitising employeestohandledataresponsiblyandsustainably In additiontothetechnicalprerequisites,focusison to preventviolations. particularly criticaldatainthesecurityanddefencesector management. Theseenableustoguaranteeprotectionofoften objectives andclasses,alongwithHENSOLDT’s documentation principles. Actionsinclude,forinstance,thedefi ned protection documentation ofcompliancewiththedefi ned dataprotection numerous actionscontributetothecontinualmonitoringand of acomprehensivedataprotectionmanagementapproach, data securityhasahighpriorityatHENSOLDT. thecontext Within and internationaldirectives,conventionscommercialpractices, aframeworkdefiWithin ned bynumerouslegalobligations,national Excerpt fromtheHENSOLDTDataProtectionPolicy Data ProtectionOfficer.” ortheGroup in theareaofdataprotectionisobligatedtoreportthishisorhersupervisor comply withthedataprotectionregulations. employeewhoidentifi Every es avulnerability their day-to-daytasks. Allexecutives areobligatedtoensureandverifythattheirsubordinates “All employeesareexpected tobeconstantlymindfulofdataprotectionwhenperforming 5 HENSOLDT SUSTAINABILITY REPORT self-determination andgeneraldatasecurity. differences alsocomprisesissuessuchastransparency, under considerationofmarket-specificandregional action frameworkapplicableworld-wideatHENSOLDT In additiontodefinedprinciplesforhandlingdata,the any intrusions. standardslevel ofinternational andtoprevent ordefeat Our aimistoensure theprotection ofdatameetsthehigh customers aswellthoseofourotherstakeholders. way, weare safeguarding thedataofallemployeesand as wellHENSOLDT’s documentationmanagement.Inthis powerful. Theseincludetheprotection objectivesandclasses information processing iseffective andefficient, secure yet deploying processes andsystemsintendedtoensure thatour Under theBoard’s oversight,theteamisdeveloping and and ourownintegritystandards usingarisk-basedapproach. programme incompliancewithallregulatory requirements developing theHENSOLDTDataProtection Management Management team,whichreports toLegal,iscontinuously To minimisetheresulting potentialrisks,theDataProtection creation andproduction chain. the useofresources are openingupalongtheentire value time, opportunitiesforenhancingefficiency andimproving has nowbecomethenormformanyemployees.Atsame intelligence hasreached thetippingpointandmobileworking the rule,Industry4.0istransformingmanufacturing,artificial Remote maintenanceandservicesare increasingly becoming The pandemicgavefurthermomentumtothistrend in2020. and innovativeservices,aswellaltered workmodels. Data makepossiblenewproducts, product applications digitalization conceptsare constantlyemerging atHENSOLDT. digitalization andnetworking,newbusinessmodels In thecontextofcontinuallyadvancingandaccelerating New businessmodels–newrisks

094 | 095 CO but alsosignificantlyreduce businesstravel,andthus and 3Dsimulationsnotonlyimprove customerservice, presentations. Theseleveragethepotentialofvirtualreality service aswellforcustomereducationservicesand new solutionsforremote maintenanceandremote customer Concurrently, HENSOLDThasdevelopedandimplemented and trackKPIs. here. Theuseofdashboards alsomakesitpossibletovisualise exchange platformoftheHENSOLDTGroup alsoplaysarole Microsoft Teams asthecentralcommunicationanddata to mobileusers,e.g.viatheirphones.Therollout of determine whethertheycanconcurrently bemadeavailable New applicationswillbereviewed before theirrollout to as anormalpartofourfuture day-to-dayenterpriseoperations. is resolved, HENSOLDTintendstointegratemobileworking made asubstantialcontributionhere. Evenafterthepandemic The optimisationofmobileworkingduringthepandemic sustainability initiatives. its ecologicalfootprintin2020bymeansofvariousdigital HENSOLDTfurtherreducedof theGermanGovernment, living andbusiness.Inharmonywiththesustainabilitystrategy digital technologiespresent newopportunitiesforsustainable At thesametime,increasing digitalizationandtheuseof Digitalization andsustainability the enterprise,andenvironment. added value–tothebenefitofouremployees,customers, The principlethat“thedataare secure” creates scopefor for aHENSOLDTfuture that isbothdigitalandsustainable. with theresponsible behaviour ofallemployeesformthebasis Thus, secure, protected informationtechnologytogether are allaboutpeople. the applicationofAI.Ultimately, HENSOLDT’s technologies principles are compliedwithinboththedevelopmentand This meansthatHENSOLDTmustensure thatethical technologies are inuseatHENSOLDTacross alldivisions. technologies suchasartificialintelligence(AI).Today, AI also placesahighpriorityontheresponsible useofcore In additiontoreducing itsecologicalfootprint,HENSOLDT 2 emissions. 5 HENSOLDT SUSTAINABILITY REPORT

096 | 097 OUR PEOPLE 5 HENSOLDT NACHHALTIGKEITSBERICHTSUSTAINABILITY REPORT

098 | 099 the ManagementReport. may thereforeoccurin in the(employee)figures are excluded. Deviations Representative Offices consolidation. Sales within thescopeof HENSOLDT companies the headcountofall chapterpertainto All figures inthis are over55yearsofage. aged 35to44,anotherquarterisbetween45and54,justunder25percent 26 percent ofemployeesare under35yearsofage, approx. 25percent are The agedistributionofemployeesisverybalancedandasfollows:approx. 22 percent intheExecutiveCommittee. in thegloballeadershipteam,thisproportion isjustunder15percent respectively Women accountforroughly 22percent ofemployees.Onmanagementlevel percent inSouthAfricaandFranceapproximately three percent intheUK. 70 percent ofouremployeesworkatsitesinGermany, followedbyjustunderten As of31December2020,theCompanyemployed5,227persons.Justover in France,SouthAfricaandtheUK. 40 locationsworld-wide.OutsideofGermany, HENSOLDTismainlyactive HENSOLDT canstrategicallyserveitsgrowing customerbasefrom closeto in Europe,Asia,NorthandSouthAmericaAustralia. Munich. HENSOLDTisrepresentedaroundtheworld– German centreofdefence-relatedinnovationnotfarfrom HENSOLDT isheadquarteredinTaufkirchen, animportant South Korea, India, UAE, SaudiArabia, Turkey Sales representations: Spain, Finland, Belgium, USA, Chile, Brazil, Singapore, Australia, HQ/production (industrialsites):Germany, South Africa, France, UK 5 HENSOLDT SUSTAINABILITY REPORT APPROACH MANAGEMENT

100 | 101 attractiveness onthelabour market. and realisinghiddenpotential.Atthesametime, thisheightensour in fosteringemployeeloyalty, increasingtheirsatisfactionandperformance continuing educationandtalentpromotionatHENSOLDT playamajorrole As apartofourstrategichumanresourcesplanning anddevelopment, Board. assessment rateandthereturninaudits totheSupervisory “cold” feedbackcycle.TheHENSOLDTAcademyregularlyreportsonthe activity. Thetransfer topracticeisverifi ed sixweekslaterthroughasecond, this, asystematic“hot”feedbacksessiontakesplacedirectlyattheendofevery success andguaranteethetransferoflearnedskillstopractice.To enable We continuallyrefi ne thequalityofoureducationalofferingstoensure are currentlyinpreparation. New formatsforinformallearningandtarget-group-specifi c learningpaths and blended-learningconceptsthatcombinein-persone-learning. portfolio alreadyincludesnumerousneeds-basede-learningofferings the accessibilityandfl exibility ofitslearningofferings.Today’s education an initiative-based,self-guidedlearningcultureandcontinuallyexpanding requirements foremployeesingeneral.To thisend,HENSOLDTisdeveloping market, newworkandfl exible workingtimemodelsaswellnew These challengesincludeissuessuchasrecruitingtalentsinanevertighter HENSOLDT isstrivingtomasterpresentandfuturechallengesevenbetter. supports thecontinuingdevelopmentofoperationaldepartments. Academy offersamodern,technicallysophisticatedportfoliothatoptimally and competencesofallemployeeswithintheenterprise.TheHENSOLDT programmes aimtoensurethecontinualdevelopmentofcapabilities strategy andphilosophy. TheHENSOLDTAcademyandinternaldevelopment targeted promotionoftalentsareadynamicpartHENSOLDT’s enterprise The ongoingtrainingandcontinuingeducationofemployeesthe 5 HENSOLDT SUSTAINABILITY REPORT in life,bothpersonallyandcareer-wise.” excellent roadmap fordiscoveringwhat’s important iLEAD madeitpossibleforme.” Or:“iLEADisan success. Two examples:“Changebeginswithoneself! to emerge. Theirtestimonialsconfi rm theprogramme’s enables agile,constructivecommunitiesofmanagers and continuedwithoutamissingbeat.Thisprogramme during thepandemicshiftedad-hoctovirtualenvironments function leadershipprogramme iLEAD@Hensoldt,which cross-hierarchicto takepartintheinternal, andcross- at HENSOLDT, they, like allmanagers,havetheopportunity On theirsubsequentpathtoexecutivemanagement are closelyintegratedinexistingteams. special coaching,cangettoknowmultiplesitesand programmes concurrently withtheirstudiesreceive for example,studentswhotakepartindevelopment HENSOLDT’s efforts startwithouryoungestemployees: To enhanceourattractivenessasaplacetowork, Finding anddevelopingtalents for newchallenges. closely intheupcomingchangesandprepare them they are onboard withtheprogramme, involvethem employees. Consequently, weneedtomakesure that new talentsforHENSOLDTandfosterloyaltyamongall than 47,000traininghours.Theobjectiveistointerest continuing educationofferings lastyear, amountingtomore Germany were abletotake partinarangeoftrainingand the exceptionalsituation,justunder3,500employeesin further in2020onaccountofthepandemic.Inspite work ischangingatbreath takingspeed–andaccelerated appropriate toeachcareer andlifephase.Theworldof as wellinsoftskillsandgloballeadership,amanner specialist traininginrelevant areas suchasengineering continuing educationofferings. Theseincludein-depth employees awiderangeofdevelopmentformatsand with thisunderstanding,theHENSOLDTAcademyoffers HENSOLDT recognises thevalueofitsemployees.Inline Our people–ourcapital human resourcespolicy thatcentresonlifephases. capital, itsemployees, arethefocusofafuture-oriented technologies makeitpossible. HENSOLDT’s mostimportant New trendsintheworksectormakeitnecessary, new offerings were heldvirtuallyin2020. 47 percent ofalltrainingandcontinuingeducation fl exible andindependentoftimeplace.Thus, web-based trainingandwebconferences madelearning form anddigitalinstructionalmediasuchasvideos, working from home.Accesstocoursematerialsindigital through abroad offerings rangeofe-learning evenwhile employees hadtheopportunitytoadvancetheircareers This againproved trueduringthepandemic,when generates inspirationandinnovation. thinking isplacedatthefocusofallactions.This methods are developedandpromoted. Entrepreneurial development andcontinuingeducation.Agileworking increasingly extensivelyatHENSOLDTfortalent and wherever possibleandproductive, itisalsoused networking isnowaregular partofeveryone’s workday, newkindsofleadership.Digital new skillsorlearning day-to-day work,butalsothepossibilitiesforacquiring Already akeypartofeveryjob,digitalizationischanging Utilising theopportunitiesofdigitalization form thecapitalforourfuture. satisfi ed, healthy, committedandmotivatedemployees through individualisedsolutions.BecauseatHENSOLDT, employees toreconcile theircareers andpersonallives different lifeandcareer phases.Theaimistoenableall phase-oriented humanresources policy. Itfocusesonthe HENSOLDT isplacingincreasing emphasisonalife and socialdevelopmentssociologicaltrends, As ourresponse todemographicchange,technological Youthful enthusiasmandlifetimesofexperience

102 | 103 agile workingstyles–iDAREstands forInnovation,Digitalization,Agility, Refl ection andEntrepreneurship. to fosteraleadershipculture thatpromotes inspiration.Thefocusisonacquiring digitalleadershipskillsand iDARE: Thisprogramme, offered incooperationwith theTUMTechnology andEntrepreneurship Center, aims employee management,communication,sustainability, innovation,fi nance andchangemanagement. adapted toHENSOLDT’s specifi c requirements, are opentoallexecutives.Offerings coverareas suchas Executive EducationProgrammes: ThesemanagementcoursesatMunich’s TUMSchoolofManagement, a shared HENSOLDTleadership andvalueculture business unitscommunicateskeyknowledgeandaspectsof employee management,withtheaimofachieving iLEAD@HENSOLDT: Thiscross-hierarchic, cross-function globalleadershipprogramme forexecutivesfrom all in whichtheparticipantsdeveloptheirpotentialthrough variousprojects andcoaching-orientedoversight. other andwiththemanagingdirectors andotherinterest groups. Thiscommunicationfostersaninnovationculture HENSOLDT Connect:ThisnetworklinksdedicatedemployeesinallDivisionsandagegroups bothwitheach to bindtalentstheenterpriseearlyon. particularly talentedandmotivatedstudentsinexistingHENSOLDTteamsprovides coachingandtraining Students PioneerClub:Thisdevelopmentprogramme, runningconcurrently withacademicstudies,integrates for allemployees.Someexamples: From studentstomanagers,HENSOLDToffers appropriate continuingeducationanddevelopmentprogrammes HENSOLDT’s development programmes Overview ofHENSOLDT’s developmentprogrammes Commitee Executive (ExCo) HENSOLDT Group LeadershipTeam (HGLT) TUM SchoolofManagementLeadershipDevelopmentJourney Executive EducationProgrammes TUM SchoolofManagement Leadership Team Exeutive (ELT) iLEAD iDARE Leadership Team (LT) Department & Team Leader skills 2 manage Development Development Early Career HENSOLDT connect Center Graduates Students Pioneer (Pre) Club 5 HENSOLDT SUSTAINABILITY REPORT APPROACH MANAGEMENT SHARE OFFEMALEEMPLOYEESAT HENSOLDT 2020 2024 2020 EXECUTIVE COMMITTEE TARGET SHAREOF FEMALE EMPLOYEESIN: 2026 2024 2020 GLOBAL LEADERSHIPTEAM TARGET SHAREOFFEMALEEMPLOYEESIN: OBJECTIVES 14.5% 22% 22.2% 25% 30% 35%

104 | 105 with schoolsanduniversities,aswellthrough private-sectorinitiatives. are addressed through targeted imagecampaignsandparticipationinjointprojects work, mobileworkingandaninclusiveenvironment. Femaletalentsinparticular appreciates diversityandpromotesfl modern, exible workmodelssuchaspart-time Increasing thepublicperception ofHENSOLDTas agreat placetoworkthatboth diversity areas andare encouragedtotakeadvantage ofindividualcontinuingeducation. succession management.Additionally, allemployeesreceive mandatorytraininginthe selection interviewstoincrease thediversityingloballeadershipteamaspartof Talent managementthatroutinely invitesatleastonecomparablyqualifi ed womanto awareness.can promote andexternal internal Regular updatesservetoverifysuccess;thepresentation ofdiversityawards culture andcarryitintoallareas oftheenterpriseby meansofvariousinitiatives. consciously promotes diversity. Managersserveasactiverole modelsfor this Creating acorporateculture thatappreciates eachindividualemployeeand focus areas: opportunity inallitsaspects,HENSOLDThasdefi ned three working conditionsandpromotingtruediversityequal respecttothestrategicobjectivesofensuringcompetitive With enhances creativity, inspirationandthedesiretoexcel. diversity. Inanintegrativeworkingenvironment,uniqueness here isonpromotingwomenmanagers,inclusionandinternational nationality, sexualorientation,religionorculture.Onekeyfocus us tomaximisetheadvantagesofdiversityirrespectivegender, practices thatensuretrueequalityofopportunity, whichwillenable enterprise-strategic task.Theaimistoestablishstructuresand HENSOLDT understandsdiversitymanagementasacomprehensive, through appreciation. realises thepotentialinherentindiversityandcreates addedvalue into accountinmanagementremuneration.In this way, HENSOLDT defi andtaken ned performance indicators,adaptedasnecessary The successofallactionsisreviewedregularly onthebasisof 5 HENSOLDT SUSTAINABILITY REPORT Deloitte Review (22) The diversity and inclusion revolution: Eightpowerfultruths. DeloitteReview(22)Thediversityandinclusionrevolution: 4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf“ Directors, in:„https://www2.deloitte.com/content/dam/insights/us/articles/ breakthrough ideasandmakesmarterdecisions,AustralianInstituteofCompany * in executivepositions. additionally seekstoincrease theproportion ofwomen The mostrecent programme, HENSOLDTElevate, students asprospective hires. in Defence,HENSOLDTsupportswomenengineering And asamemberoftheindustry-wideinitiativeWomen through theBlackEconomicEmpowermentProgramme. in theirpursuitofcareer training andcontinuingeducation previously disadvantagedindividualsandlocalengineers now, HENSOLDT SouthAfricahasbeensupporting on specifictarget groups. Two examples:Forsomeyears numerous initiativesworld-wide.Targeted actionsfocus gender/gender identityorsexualorientation–through ethnic andsocialorigin,nationality, religion, ideology, HENSOLDT promotes talents–regardless oftheirage, to notjustsettleforwhatithasalready achieved. without suchaculture. ReasonenoughforHENSOLDT or exceedtheirfinancialtargets twiceasoftencompanies and cangeneratethree timestheperformance,andachieve eight timesassuccessful,sixinnovativeandagile vibrant culture ofdiversityandequalopportunityare upto studies*havefoundthatenterpriseswitha International positions evenfurther. aim toincrease theproportion ofwomeninexecutive as amatterofcourse.Newinitiativessuch“Elevate” promoted diversityandequalopportunityforitsemployees enterprise,HENSOLDThasalways As aninternational Top managementforequalopportunity JulietBourke(2016)Whichtwoheadsare betterthanone?Howdiverseteamscreate Thomas Müller, ChiefExecutiveOfficer, HENSOLDTAG we aregoingtochangethis!” for lessthan15percentofourleadershipteam– and satisfaction withintheenterprise. Women account HENSOLDT –thatpromotescreativity, innovative spirit “We wantmorediversityinthoughtandactionat

new ideasandaculturaldebate. events forsharingexperiencesandtostimulate with Elevate.Thisnewplatformaimstoorganise forward, HENSOLDTwantstocreate acommunity will focusmore intensivelyonfemaletalents.Going motivate allemployeesinourenterprise.Newhiring promote women,butalsogenerallysupportand New trainingprogrammes andmentoringformats role images. will makeitpossibletoovercome traditional new, ﬂexible workmodelsandsupportforfamilies opportunity tofurtherdeveloptheirskills.Finally, recruit themtoourcompanyandprovide themthe approach willspeciﬁcallyaddress womenmanagers, even more strongly. Astrategiccareer development will recognise andpromote diversityasaddedvalue transform ourentire enterprise.Anewcorporateculture This programme rests onthree pillarsthatwill the proportion ofwomeninexecutivepositionsby2026. will developconceptsandactionsintendedtodouble programme, launchedandoverseenbytheBoard, a totalof15percent ofexecutivepositions.TheElevate of allcurrent employeesare female,andwomenoccupy defence industry. AtHENSOLDT, justunderaquarter particularly inthetraditionallymale-dominated Women are under-represented inexecutivepositions, More thanjustapromise in executivepositions. It aimstopromote abalanced ratioofwomenandmen from business,academia, thepublicsectorandmedia. of ChancellorAngelaMerkel,ismadeupexecutives in June,2020.Thisnetwork,foundedunderthepatronage Additionally, HENSOLDTjoinedtheinitiative“Chefsache” Diversity inthoughtandaction

106 | 107

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108 | 109 feel safeandenjoyworking. In thisway, wecreateaworkingenvironmentinwhich employeesstayhealthy, the HSEprogrammeoractionstoheightenemployee awareness. strengths andimprovementpotential,whichleads forinstancetoextensionsof continually refi ned (lastassessmentJune2020).Theauditreportdescribes thusensuringthatitis integrated HSEmanagementsystematregular intervals, Management assessesthesuitability, appropriatenessandeffectiveness ofthe andinternal auditshelptoidentifyanydefisurveys cits andeliminatethemearlyon. Health these toBoardMembersandtheExecutiveCommitteeatregularintervals. audits, andHSEManagementtheSystemOffi cer reporton internal inspectionsonthebusinessunitlevelaswellbyexternalcertifi cation The targetattainmentlevelofallHSEprogrammesisdeterminedandmonitoredthrough assessments andconsultationsforpsychosomaticproblems. HENSOLDT implementsactionssuchasinfl uenza vaccinations,psychologicalrisk conditions mustbecompliedwithandpotentialdangersminimised.To achievethis, be fulfi lled, occupationalsafetyrequirementsandstatutorilymandatedworking environmentalprotectionandworksafetyobligations must All relevant,mandatory mental stress. workplace, butalsooffershealthcampaignsandaddressesdealingwith feel well”cultureinfuture.Thiscomprisesnotonlysafetyandergonomicsthe Attractive offerscreateadditionalincentives.HENSOLDTaimstoexpandthis“bewell, All employeesarecontinuallymotivatedtotakeresponsibilityfortheirownhealth. programmes thatfocusonboththeworkingenvironmentandindividualbehaviours. One specialfocushereisonsupportingemployeeswithtargetedhealthandscreening initiate allactions,butthiswillberemediedin2021. and theExecutiveCommittee.OnaccountofCOVID-19,itwasnotpossibleto Safety &Environment(HSE)sitemanagersandcoordinatedwithBoardMembers requirements. CompliancewiththeseiscontinuallymonitoredbytheHealth, HENSOLDT’s activitiesrelatingtoemployeehealthandsafetyfarexceedthelegal 5 HENSOLDT SUSTAINABILITY REPORT at theRobertKochInstitute. recommendations oftheStandingCommitteeonVaccinations (STIKO) Free flujabswere additionallyoffered at allsitesinaccordance withthe and protection isvitalfor HENSOLDT. reduce theriskofinfection. Particularlyintimesofcrisis,mutualsupport 3D printingprocesses were usedtodevelopframes forfaceshieldsto HENSOLDT’s employees. Ontheinitiativeofindividualemployees, pandemic brought tothe fore thewealthofideasandvolunteerspirit meetings andimplementinggeneraldistancingmeasures. Dealingwiththe shields betweenindividualworkplaces,reducing indoortraffic andin-person record time.Furtherprotection measures includedtheinstallationofPlexiglas in Production. Rulesforstaggered workingtimeswere hammered outin Flexible solutionsforadditionalprotection ofemployeeswere alsofound in HENSOLDT’s crisismanagementstrategy. just afew. Clear, constantcommunicationwithemployeesisakeyelement product acceptances,serviceandsupportforpartnerenterprises,toname solution approaches forthediversechallengesposed–infieldsof online conferences, thetaskforce cameupwithan arrayofinnovative shut-downs inGermanyatthebeginningofApril.Inadditiontoorganising day-to-day work,ahugeexpansionofmobileworkingandevensite since becomestandard practice, thedevelopmentofclearparametersfor The comprehensive concept includesthehygienemeasures thathave reconcile healthprotection andthecontinuationof businessfrom theoutset. intensive consultation,thistaskforce succeededinfindingrobust solutionsto began puttingtogetheraCOVID-19taskforce. Through aprocess ofongoing, employees andbusinesspartners.AsearlyasFebruary2020,HENSOLDT and intensifieditshealth-related efforts in2020toprotect thehealthofour In lightoftheglobalpandemicsituation,HENSOLDTimmediatelyadapted The pandemicchallenge are standard practice. health check-upsandcomprehensive fitnessandsportprogrammes across theentire Group, havealwaysappliedinalldivisions.Regular plays akeyrole. Stringentoccupationalsafetystandards, organised other people,thehealthandsafetyofitsownemployeesnaturallyalso When acompanylikeHENSOLDTisinthebusinessofprotecting Health andsafety–overcoming thepandemictogether year 2020, nootherareawasnearlyascritical. motto,in linewiththecompany “Detect andProtect”. Butinthepandemic At HENSOLDT, ouremployees’healthandsafetyhasalwayshadahighpriority–

110 | 111 (accidentsleadingtoatleastone dayofabsence)x200,000/numberhours worked. * the healthandsafetyofallour employees isatoppriority. Because physicalandmentalhealth are inextricablylinked. AndatHENSOLDT, enabling ourenterprisetorespond totheanswers. actions. Itwasalsopossibletointegratespecificquestionson dealingwiththepandemic, Surveys conductedatregular intervalsservetoautomaticallyverifythesuccessofimplemented job satisfaction,senseofpurpose,appreciation andsupportfrom colleaguesandsupervisors. This studyfocusedinparticularonmentalstressors, thereconcilability ofcareer andfamilylife, World ofWork“, whichwasfundedby theGermanFederalMinistryofLabourandSocialAffairs. From 2018to2020,allof HENSOLDT’s Germansitestookpartinthestudy„MentalHealth Increasingly, ourfocusisshiftingtoward thepotentialformentalstress intheworkplace. Reducing mentalstress health check-upsandaninformationhotline. At ourBritishsites,thispreventive healthprogramme iscomplementedbygeneral Free backanddiabetescheck-upsadditionallyhelptoidentifyproblems atanearlystage. simplification ofworksteps,were initiatedtoaddress these. areas ofproject workandinterfaces.Diversesteps, suchasteam-buildingactionsor basis, reveal weakpoints.Intheyearunderreview, weakpointswere foundmainlyinthe valuable information.Surveysonhealthintheworkplace,generallyconductedanannual providebehaviour”, aswellon“livingwillsandlastingmedicalpowersofattorney”, further addictionsandaddictive Regular talksonsuchtopicsas“visioninthedigitalage”,“modern in theWorkplace“ project. HENSOLDT ispromoting healthyposture ofemployees attheirdeskswithits„Ergonomics relaxation, andare beingreceived enthusiasticallyasawelcomediversion.Additionally, the region. Additionalmovementbreaks enablemovement,exercise, stretching and Taufkirchen site,whichhasentered intoagreements withanetworkofgymsthroughout in thein-housegymatourUlmsite,whichboastsover300activemembers.Or Regular exercise isoneofthekeystonesahealthylifestyle.AtHENSOLDTforinstance Fit andhealthy it possibletocontinuesafeguard employees’safetyinfuture. logs near-accidents, analysesthecausesanddevelopspossibleactions,withaimofmaking in preventing accidents,HENSOLDThasimplementedanideasmanagementtool.Thissystem that thispaysoff (LTIFR 0.49*).To ensure thatHENSOLDT’s safetymanagementremains effective locations overseecompliancewiththeHSEpolicies.Lowaccidentfigures atHENSOLDTshow Laws andRegulationsformthelegalframeworkforthis.Electedrepresentatives from thevarious occupational safetyprogramme safeguards thewell-beingofallouremployees.TheHSENotice HENSOLDT hasalwaysemphasisedhealthandsafety, notonlyduringcrises.Acomprehensive Safety intheworkplace LostTimeInjuryFrequency Rate:numberoflost-timeinjuries 5 HENSOLDT SUSTAINABILITY REPORT

112 | 113 ENGAGEMENT SOCIAL 5 HENSOLDT SUSTAINABILITY REPORT most needed. our assistanceis help outwherever ready topitchinand level andarealways on thelocalandregional as agoodneighbour We takeprideinacting extremely seriously. social responsibility the associated HENSOLDT takes active enterprise, As aninternationally NEIGHBOUR A GOOD

114 | 115 graduates six or twelve-month internships. Onthesocial level, graduates sixor twelve-monthinternships. of theworldworkatHENSOLDT. We offer university enableanevenbetterunderstanding or two-weekinternships to lettheirpupilsworkinvarious projects fortwodays.One Here are justafewexamples: and innovationinthearea ofcorporatecitizenship. this creates aharmonyof cooperation,excellence,responsibility to volunteertheirtime.Drivenbyourowncorporatevalues, Consequently, HENSOLDT continuallymotivatesitsemployees crisis, socialcohesionismore importantthanever. childcare centre inSouthAfrica.Andmuchmore. Duringa Algeria, andfoodpersonalprotection equipmentfora We donatedfeverthermometersandmasksatshortnoticein organisation DiakonieverbandOstalptosupporthomeschooling. hospital. We donatedlaptopstothelocaldiaconicalwelfare face shieldsfortheBundeswehrhospitalandlocaluniversity actions where helpwasneededmost.OurUlmsiteprovided when HENSOLDTspontaneouslyhelpedoutwithavarietyof As, forexample,in2020duringtheCOVID-19pandemic, hand inemergency situations. young people,andquiteoftensimplyextendingahelping the fi rst place,promoting enthusiasmfortechnologyamong vocational trainingandgivingthemaccesstoeducationin often theweakestamongthem,supportingchildren intheir and publicinstitutions.Allwiththeaimofhelpingpeople, cooperation withnot-for-profi t andcharitableorganisations has emerged overtheyearswithaidofandinclose As aconsequence,broad portfolioofindividualinitiatives HENSOLDT focusesonsupportinglocalandregional initiatives. Local, regional –sustainable for manyyears. company.behaviour ofvirtuallyevery AsithasbeenforHENSOLDT modelled bythetitansofindustrialisation,itisnowapartnormalbusiness narrow obligations–hasalongtraditioninGermanyandEurope.Practised Corporate citizenship–thecommitmentofanenterpriseaboveandbeyondits Thomas Müller, ChiefExecutiveOfficer, HENSOLDTAG who arealsoextremely enthusiasticabouttakingpart.” CSR activities. Beingonsitemeansbeingintouch withwhat’s happening, andwe’reabletomotivate thepeopleatourfacilities, sponsorships, HENSOLDT’s commitmenttothecommunitiesandregionsinwhichouroperationsarelocatedisakeyfocusof “In additiontosupportingnumerousinitiativesintheareasofpolitics, sport, education, with donationsand scienceandindustry In theUK,HENSOLDToffers localschoolstheopportunity locations around theworld.Asagoodneighbour does. to promote communitiesandcommunitycohesionatall its all fi t togethertoformaunifi ed picture ofHENSOLDT’s efforts Much likeajigsawpuzzle,thewidely variedindividualactions Sciences Neu-Ulmandfuture managersatTUMunich. students whocontributesociallyattheUniversityofApplied of Technology (KIT).HENSOLDTsupportsexceptional forscht e.V.” atmultiplesites, aswelltheKarlsruheInstitute sponsoring theGermanyouthresearch contest“Jugend Bundeswehr toaidchildren inconfl ict andcrisisregions. “Lachen helfene.V.” aGermany-wide initiativeofthe and (children’s) hospitals–tomembershipinandfundingof assistance –tosuchorganisations asfi re services,hospices members ofthissociety. facilities –helptheoftendisadvantagedyoungest for instancechildren in needortofundschoolsports commitment. Additionaldonationsinthesocialsector– also regularly teachinschoolsaspartofHENSOLDT’s career trainingandcontinuingeducation.Ouremployees career opportunitieswithHENSOLDT–byproviding perspective intheirhomecountry–includingjoband to studyengineering.We givelocalengineersalong-term Here, HENSOLDTgrantsscholarshipstowomenwhowish and fi nancial assistance. support achildren’s hospicethrough avolunteerprogramme workforce, provide leavesubsidiesforreservists, and we assistformermilitarypersonneltoreturn tothecivilian In theeducationsector, HENSOLDT’s efforts include In Germanyaswell,actionsrangefrom localoffers of Education alsorepresents aspecialfocusinSouth Africa. 5 HENSOLDT SUSTAINABILITY REPORT

116 | 117 PLANET, ENVIRONMENT AND RESOURCES 5 HENSOLDT SUSTAINABILITY REPORT TARGETS ENVIRONMENTAL

Emissions -20% ↓

Renewable energies ↑ 70%

Volatile organic ↓ compounds (VOC) -20% APPROACH MANAGEMENT Peter Fieser, MemberoftheBoardandChiefHumanResourcesOfﬁcer numerous initiatives.” footprint andprotectingourplanet through We arepursuingourobjectiveofreducingecological earth’s natural resourcesisthusstandardpracticeforus. of ouractivitiesontheenvironment. Themindful useofthe we acknowledgeourresponsibilitytoreducetheimpact “As anenterprisewithproductionfacilities aroundthe globe,

118 | 119 products thatcanbereused, recycled orsafely disposedof. processes andmaterials. Ouraimhere istopromote thedevelopmentof regular basis. The targets andindividualobjectivesare documentedandupdatedona and individualobjectivesasacontinuousimprovement programme. organisation hascommittedandwhichrelate toitsenvironmental aspects. Among otherobjectives,thesecommitusto: Beyond that,therequirements ofourHSEGroup Policyapply. according totheprincipleofscience-basedtargets. coming year, thesetargets are tobeextendedtheGroup levelanddefi ned volatile organic compounds(VOCs)byatleast20percent eachby2024.Inthe business travelandfl ights. proportion ofrenewable energy, optimising energy effi ciency and reducing renewable energy to70percent andreducing CO In Germany, HENSOLDT hascommitteditselftoincreasing theproportion of means forachievingsustained,profi table growth. aspects, andthehigher-level sustainabilitystrategy. Itisviewedasasustainable environmentally harmfulimpacts,energy-related performance,allenvironmental is tocontinuallyimprove HENSOLDT’s entrepreneurial actionwithrespect to on attainmentoftheHSEtargets andcompliancewiththepolicies.Ouraim FM andSecurityreports directly totheBoard andtheExecutiveCommittee implemented operationallybylocalHSEteamsworld-wide.TheHeadofHSE, are strategicallycontrolled andcentrallycoordinated ontheGroup leveland for achievingthem.AtHENSOLDT, environment, healthprotection andsafety form ofHSEguidelinesaswellstrategicobjectivesandconcrete actions occupational safetyandenergy. ThesitesimplementthisGroup Policyinthe fulfi lling allrelevant obligationsintheareas ofenvironmental protection, The HSEGroup Policysetsoutmandatoryguidelinesforallemployees as ourguidelinesforenvironmentalobjectives. We usestringentnationalandinternationalrequirements(ISO14001,EnergyauditDIN16247) performance. Theassessmentisconductedusingclearlydefi ned parametersandprocesses. at allofthecompany’s sitesformsthebasisforcontinuousimprovementofourenvironmental the useofresources,emissions,traffi c, wastes,andwater. ofallprocesses Theresultingoverview sustainability management.To thisend,environmentalmanagementtracksenergyconsumption, ofnaturalresourcesareatthecoreHENSOLDT’sProtection ofourenvironmentandconservation ReducingCO Applying designstandards thatpromote theuseofenvironmentally friendly Creating aframeworkfor defi ning andreviewing environmental targets Complying withtheapplicablelegalandotherrequirements towhichour 2 emissions(asoftoday:96,970 tCO 2 emissions andtheuseof 2 ) byincreasing the nature asthebasisforalllife. to protecting ourenvironment and only toprotecting people,butequally “Detect andProtect” appliesnot Because forHENSOLDT, ourmotto awareness amongallemployees. substances appropriately handlinghazardous be disposedofaslandfi ll, aswell at alltimes. to beagoodneighbourinourcommunities on thelocalenvironment andstriving e-learning). enterprise (includingbymeansofsuitable in trainingprogrammes throughout the of HENSOLDT, andincludingthesetopics and otherpersonsworkingonbehalf technologies amongallemployees responsibility andtheuseofappropriate all divisions. and theeffi ciency of energy usein new products, servicesandfacilities, of recycled materialswherever possible. reuse andrecycling, aswelltheuse of allmaterialsandconcurrently their Developingacomprehensive environmental Largely avoidingwastethatmust Mitigatingtheimpactofourenterprise Promoting environmental awareness, Increasing theenergy effi ciency of Promoting thereduced consumption 5 HENSOLDT SUSTAINABILITY REPORT Reduction ofCO considers itselfchallenged scarce resourceswisely. requirement world-wide. HENSOLDT naturally and obligatedtouse and innovativeideas is aclearlydefi ned Detailed concepts individual actions. lead tonumerous IS MORE 2 emissions LESS

120 | 121 possible. AdetailedanalysisofourCO and itsimpacts. will allreduce ourCO employees andourownphotovoltaicsystemsatsites vehicles. Anewlightingconcept,acarpoolingappfor our facilitiesisintendedtopromote transitioningtoelectric provides fortheconstructionofacharging infrastructure at mobility conceptthatcoversallcompanyvehiclesand corresponding compensationisplannedfor2021.Anew CO HENSOLDT hasalsocommittedtosubstantiallyreducing for carbonoffsetting incaseswhere noreduction inCO at night.Additionally, theenterprisewillvoluntarilypay transport fare subsidies.PCsare largely switchedoff centrally employees are encouragedtousepublictransportandreceive aims toobtainallofitselectricityfrom renewable sources. All area, withmore inplanning.Forexample,future, HENSOLDT In Germany,severalactionsare already underwayinthis resources andareductionofCO world-wide. ThatiswhyforHENSOLDT, too,theeffi cient useofourearth’s natural Climate changeisoneofthegreatestchallengesourtimeandhasmajorconsequences facilities atthesites. other thingsthrough theinstallation ofadditionalshower Employees are encouragedtostartcyclingwork–among suppliers are tobepreferred inorder toreduce deliverytraffi c. videoconferencing technologiestobeusedinstead.Local to beavoidedwherever possible, withnewlyimplemented 2 emissionsintheUnitedKingdom.Businesstravelis 2 footprintfurther. 2 balanceandthe 2 emissionsarekeytasksforlimitingglobalwarming 2 is future generations. to protect ourenvironment andpreserve itfor consumption, HENSOLDTispursuingaholisticapproach: In itsefforts topreserve naturalresources andminimise at oursites. recirculation andreducing theconsumptionofhotwater converting our(washing)machinesinproduction toclosed as animportantbasisforlife,amongotherthingsby includes comprehensively reducing waterconsumption administration atallitssitesaround theworld.This reduce theuseofnaturalresources inproduction and Additionally, HENSOLDTistakingactionstosubstantially neutrality (see3.2). to marketandHENSOLDTFranceonegiantstepcloserCO brought animportantcomponentoftomorrow’s energy transition storage, NEXEYA –aHENSOLDTcompanysince2019has Through itsdevelopmentandproduction ofhydrogen-based energy is ashiningexamplefortheuseofgreen electricityfrom hydrogen. greenhouse gasemissions.Atthesametime,HENSOLDTFrance signifi cantly reduced energy consumption,hasalready lowered as possibleappliesinFrancewell.This,combinedwith The requirement tominimisebusinesstravelandfl ights asmuch 2 5 HENSOLDT SUSTAINABILITY REPORT responsible stewardship hazardous substances principle. Inparticular, sustainable business. preventing wasteand ENTERPRISE contribute greatlyto OF ALLLIFE of theenvironment and savingenergy THE BASIS AND OUR and undisputed At HENSOLDT, is akey, core

122 | 123 the partofallouremployees. all legalrequirements andwithstrictmonitoringofsame.Andenormouscommitmenton and protecting theenvironment wherever andhoweverwecan.Naturallyin full compliancewith HENSOLDT sitesaround the globe.Inthisway, weare reducing ourenvironmental footprint The requirements setoutinthedirectives oftheHSEGroup Policyadditionallyapplyatall a keycriterionforthedevelopmentofnewproducts andservices. coolingsystemsreducesThe useofalternative energy consumption. Energy efﬁciency isalready recycling rateof65percent, systematicwastesorting and100percent prevention oflandﬁllwaste. HENSOLDT UKaimstomeetthenew, extremly stringentrequirements ofISO14001witha HENSOLDT’s UKsiteshavealsosetthemselveschallengingenvironmental targets. and anewcoolingsysteminProduction are expected toenablefurthersavings. optimisations in2021.Plannedroof refurbishments, insulationactions,anewlightingconcept At ourGermansites,acomprehensive consumptionanalysisisexpectedtoleadfurther energy-saving LEDilluminantsrealise additionalenergy-saving potential. of ouremployees.Theusemotionsensorstocontrol lightingandtheinstallationof Strict wastesortingisjustasmuchnormalprocedure asenergy-aware behaviouronthepart environmentally friendlyvariants.Optimisedproduction helpsreduce hazardous substances. In recent years,forinstance,wehavereplaced thecoolantsinourAESAantennaswith to thesegoalsthrougharangeofactions. sustainable, environmentallyfriendlybusinessactivity, andiscontributing the reductionofenergyconsumptioninparticularaspowerfulleversfor currently considersthepreventionofwasteandhazardoussubstances directives andrequirementsforallbusinessunitsemployees,HENSOLDT without whichlong-termbusinessisnotpossible.Inadditiontomandatory obligation tofuturegenerationsandanactofentrepreneurialreason, HENSOLDT regardstheprotectionofourenvironmentasaself-evident

5 HENSOLDT SUSTAINABILITY REPORT APPROACH MANAGEMENT

124 | 125 nature andtheenvironment evenbeyondtheiroriginallyintendedpurpose. Numerous applicationsaround theworldaffi rm thatmultipleHENSOLDT products are abletoprotect institutes andpartners.Thisincludesbothfabricationprocesses andmaterialsresearch. New possibilitiesandapplicationsare constantlybeingdevelopedinclosecollaborationwithresearch possible impactsonpeopleandtheenvironment. requirements andmonitortheirimplementationin technology developmentprojects alongwith enterprise. Responsibletechnologymanagersanticipatefuture developments,defi ne development technology strategyisdrivenbytheongoingevaluationofnecessarycore technologiesofthe is released bytheheadofdevelopmentonmanagementlevel.HENSOLDT’s long-term,sustainable formally reviewed onaregular basisthroughout theentire developmentprocess. Theproduct safetyfi le export regulations (see5.2)andwithafocusoncustomerrequirements. Allaspectsofproduct safetyare adapt ourproductlawsandregulations portfolioincompliancewithnationalandinternational aswell our products, weuseadvancedtechnologiesandexploittheirpotentialfully. We continuallyreview and byourunderstandingthat ourbusinesssuccessdependsprimarilyonthesuperiorqualityof Governed products tonon-approvedrecipients. Final destinationclausesensurethatcustomersmaynottransferHENSOLDT permits followingareviewofallcontractpartiesthroughtheCDDDprocess. technologies subjecttoapprovalareonlydeliveredwithcorrespondingexport international exportregulations,thuspreventingcompliancerisks.Goodsand compliance systemtoensureconformitywithnational,Europeanand the saleofHENSOLDT’s productsissubjecttoarigorousinternalexport products andtheiruse.Aspartofourunderstandingproductresponsibility, and lifeworld-wide(see5.1).HENSOLDTisawareoftherisksposedbyits understanding ofsustainability–namelyfurtheringtheprotectionallpeople seriously. ProductdevelopmentisguidedprofoundlybyHENSOLDT’s sector, HENSOLDTtakesitsresponsibilityforproductsextremely As asupplierofhigh-qualityelectronicsensorsandsolutionsinthedefence 5 HENSOLDT SUSTAINABILITY REPORT PEOPLE, ANIMALS according totherequirement Additionally, ourCompany’s HENSOLDT alsosupports its productsandsolutions products activelyprotect through ouradherence to socialimprovement. PROTECTING HENSOLDT develops AND NATURE nature andcontribute that theycomplywith to exportregulations. their responsibleuse all applicablelaws and regulations.

126 | 127 HENSOLDT products future-proof. and processes atanearly stage,whichhelpsmake This enablesustoidentifyandreplace hazardous substances (SVHC) andbiohazards. restrictions ontheuseofsubstancesveryhighconcern and restriction ofchemicals(REACHDirective) and Directive RoHS),theregistration, evaluation,authorisation electronic equipment(RestrictionofHazardous Substances the useofcertainhazardous substancesinelectricaland This includesinparticularmonitoringtherestriction of out theseimprovements enterprise-wide. procedures andprocesses, improves themandthenrolls teamofexpertsanalysesthe products,internal production Product Environmental Compliance(PEC)process, an environment asaprimarytask.AspartofHENSOLDT’s with regard totheirpossibleimpactsonpeopleand the its products andtheprocesses usedintheirmanufacture Our enterprisehasidentifi ed theongoingmonitoring of Safe forpeopleandtheenvironment HENSOLDT takesresponsibility–fromthefi rst dayoftheproductlifecycletolast. of ourproducts. lifetimes production andfeedbackfromourcustomersduringthegenerallylongservice and byadaptingallassociatedprocesseswithintheenterprise–fromdevelopmentto regulations andexportrequirements;throughtheongoingqualifi cation ofouremployees; is continuallyrespondingtothesetrends:byrigorouslymonitoringcompliancewithalllaws, acceptance ofpotentialrisksissteadilydeclining–particularlyinairtransport.HENSOLDT Requirements withregardtoproductliabilityareincreasingthroughoutoursociety. The ecological aspectsofourproduct development. optimise thetechnological,economic,andaboveall more sustainableproducts. Inthisway, wecanfurther institutes –sothatwecanoffer customerslighterandthus new lightweightmaterialsandcollaborationwithresearch from thestart–forexampleinformofvirtualdesign, integrating lightweightinginitsdevelopmentprocesses right Going forward, HENSOLDThasthussetitselfthetarget of also represent enhancedvalueforHENSOLDT’s customers. In additiontoresource savings,lightweighttechnologies products andfabricatingmaterials,insubsequentuse. it possibletosaveresources whenmanufacturing Here, lesstrulyismore. Lightweighttechnologies make technology forsustainable,climate-friendlydevelopment. extremely lightweightproducts isconsidered akey means lightweightstructures. Thedevelopmentof role here. Inadditiontosensortechnology, thisalso sustainably. Investmentsinkeytechnologyplayavital Innovation isessentialtoenableHENSOLDToperate Lightweight =environmentally friendly 5 HENSOLDT SUSTAINABILITY REPORT as well. to polarbearprotection inotherArctic regions in Greenland, HENSOLDT planstocontribute bears andpeople.Encouragedbyitssuccess avoid anencounter. Thisprotects bothpolar approaching bearsbyphone, enablingthemto researchinternational team areof warned several kilometres. Themembers ofthe polar bearscanbedetectedatadistanceof (EastGRIP). UsingHENSOLDT’s radarsystems, station oftheEastGreenland Ice-Core Project system thatisalready beingusedataresearch HENSOLDT hasdevelopedanearlywarning decades. To prevent encounterswithhumans, population hasdeclineddramaticallyoverrecent with theanimals’deaths.Theglobalpolarbear predators andhumansisincreasing, oftenending number ofencountersbetweentheseapexArctic of manypolarbears.Atthesametime, Climate changeisdestroying thenaturalhabitat Protecting polarbears partners forendangered-species protection. high-tech wildlifefundtorecruit additional in future. Furtherplansinvolveestablishinga throughout SouthAfricaevenmore effectively intelligence willhelpprotect rhinoceroses forward. Thedeploymentofdrones andartificial The systemistobedevelopedevenfurthergoing vision cameras,radartechnologyandsensors. the surrounding landscapewithdayandnight- surveillance oftherhinoceroses, theterrainand This speciallydevelopedsystemcombines protected 24/7byhigh-techfrom HENSOLDT. hectare Buffalo Dream RanchinSouthAfrica– Around 1,800rhinoceroses roam the8,000- Rhinoceros haven its technologiesalsohelptoprotect endangered species. HENSOLDT notonlytakesresponsibility forpeopleandtheenvironment withits“regular” products – HENSOLDT products safeguard nature andanimals a thingofthepast. as adelicacy. Theonce-rampant illegalharvestsare nowliterally the legalharvestingofabalones,atypemolluschighlyprized they candodamage,whileatthesametimehelpingtomonitor for border securityapplicationsdetectspoacherslongbefore “poacher-proof”. HENSOLDTtechnologyoriginallydeveloped biodiverse coastalregions inSouthAfrica,isnowalsovirtually The HangklipConservatoryclosetoCapeTown, oneofthemost in order toprotect biodiversityandfunctioningecosystems. they are usedtosurveilshellfishfarmsandnationalparksinCostaRica now playanimportantrole inprotecting maritimeareas. Forinstance, urgently needstoberesolved. HENSOLDT’s SBSradarsystems Overfishing andpiratefishingrepresent aglobalchallengethat No chanceforpoachers who dedicatethemselvestoprotecting us. animals andnature, ensure safetyandsecurity, andprotect those HENSOLDT solutionsandproducts detectthreats topeople, birds approach. possible tocontrol andstopwindturbineswhenflocksof to tracktheflightpathsofendangered bird species,makingit require specialprotection. HENSOLDT’s radarsystemsare used the erection andoperation ofsuchturbines.Endangered species endanger biodiversity. Birds andbatscanbeinjured duringboth Climate-friendly technologiessuchaswindturbinescanalso in thetailingponds. This prevents numerous speciesfrom meetingagruesomeend detect flocksofbirds, which are drivenoff bydeterrent devices. landing ontheoilysurfacesoftheseponds.Theradarsystems HENSOLDT’s radartechnologyisusedtokeepbirds from of contaminatedwater, whichisimpoundedin tailingponds. in Canada.Separationoftheoilleavesbehindlarge quantities Recent yearshaveseenasharpincrease inoilsandmining Protecting birds around theworld

128 | 129 5 HENSOLDT SUSTAINABILITY REPORT

130 | 131 GRI CONTENTINDEXAND GRI PERFORMANCEDATA

5 HENSOLDT SUSTAINABILITY REPORT

132 | 133 GRI 102-19 - GRI 102-39 Corporate governance disclosures Corporategovernance GRI 102-19-102-39 GRI 102-18 Governance GRI 102-16 Ethics andintegrity GRI 102-15 GRI 102-14 Strategy GRI 102-13 GRI 102-12 GRI 102-11 GRI 102-10 GRI 102-9 GRI 102-8 GRI 102-7 GRI 102-6 GRI 102-5 GRI 102-4 GRI 102-3 GRI 102-2 GRI 102-1 Organizational Profile GRI Indicator GRI 102:GeneralDisclosures GRI 101:Foundation Governance structureGovernance and normsofbehavior Values, principles,standards, and normsofbehavior Values, principles,standards, ttmn rmsno eiinmkr SustainabilityReport(2020)p.76f. Statement from seniordecision-maker Membership ofassociations External initiatives External Precautionary principleor approach and itssupplychain Significant changestotheorganization Supply chain and otherworkers Information onemployees Scale oftheorganization Markets served Ownership andlegalform Location ofoperations Location ofheadquarters ciiis rns rdcs n evcsAnnualReport(2020)p.11 Activities, brands,products, andservices Name oftheorganization GRI Standards not provided duetotheapplication of„inaccordance withGRI“. Report (2020)p.80f.,amore comprehensive descroption iscurrently isprovidedInformation oncorporategovernance intheSustainability Annual Report(2020)p.82ff. Sustainability Report(2020)p.80f. and SustainabilityReport(2020)p.82f. Annual Report(2020)p.39f. in otherassociationsandinterest groups. and ASD(Aerospace andDefense),aswellinvolved (Bund deutscherSicherheits-undVerteidigungsindustrie) HENSOLDT isactiveintheCSRgroups oftheBDSV Sustainability Report(2020)p.113ff. Annual Report(2020)p.39ff. Information onlegalstructure: AnnualReport(2020)p.12f. Information onbusinessperformance:AnnualReport(2020)p.25f., Sustainability Report(2020)p.91 Sustainability Report(2020)p.98andAnnual12 Annual Report(2020)p.13and26f. Annual Report(2020)p.14f. Annual Report(2020)p.12and117 Annual Report(2020)p.12and117 in Taufkirchen, Germany. of theMunichLocalCourt(HRB258711),hasitsregistered office Hensoldt AG,whichisentered intheCommercial Register Hensoldt AG Page number/URL/Explanation 5 HENSOLDT SUSTAINABILITY REPORT GRI 205-3 GRI 205-2 GRI 205-1 Anti-Corruption GRI 205(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI 102-56 GRI 102-55 GRI 102-54 GRI 102-53 GRI 102-52 GRI 102-51 GRI 102-50 GRI 102-49 GRI 102-48 GRI 102-47 GRI 102-46 GRI 102-45 Reporting practice GRI 102-44 GRI 102-43 GRI 102-42 GRI 102-41 GRI 102-40 Stakeholder engagement GRI Indicator Anti-Corruption MATERIAL TOPICS and actiontaken Confirmed incidentsofcorruptions and procedures about anti-corruptionpolicies Communication andtraining related tocorruption Operations assessedforrisks Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic External assurance External GRI contentindex with theGRIStandards Claims ofreporting inaccordance the report Contact pointforquestionsregarding Reporting cycle Date ofmostrecent report Reporting period Changes inreporting Restatements ofinformation List ofmaterialtopics boundaries Defining report contentandtopic financial statements Entities includedintheconsolidated Key topics and concerns raised Key topicsandconcerns praht tkhle naeet SustainabilityReport(2020)p.82f. Approach tostakeholderengagement dniyn n eetn tkhlesSustainabilityReport(2020)p.82f. Identifying andselectingstakeholders Collective bargaining agreements List ofstakeholdergroups GRI Standards Sustainability Report(2020)p.89ff. Sustainability Report(2020)p.88ff. Sustainability Report(2020)p.88ff. is describedintheSustainabilityReport(2020)p.88f. The handlingofcomplianceandanti-corruption Sustainability Report(2020)p.79 published seperatelyonthehomepage. Sustainability Report,Appendix.TheGRIContentIndexiscurrently not Sustainability Report(2020)p.79 Sarah Sterzl([email protected]) Sustainability Report(2020)p.79 n/a Sustainability Report(2020)p.79 n/a n/a Sustainability Report(2020)p.84 Sustainability Report(2020)p.82ff. Annual Report(2020)p.143f. Sustainability Report(2020)p.82ff. information canberetrieved inGRI405-2. agreements orsimilaragreements wheneverpossible.Additional For us,itisamatterofcoursethatwejoincollectivebargaining Sustainability Report(2020)p.79and82f. Page number/URL/Explanation

134 | 135 306-2 Waste GRI 306(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI 305-6 GRI 305-2 GRI 305-1 Emissions GRI 305(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: 303-5 303-1 Water andeffluents GRI 303(2018): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI 302-1 GRI 302(2016):Energy GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI Indicator Waste Emissions Water Energy at ytp n ipslmto SustainabilityReport(2020)p.123,GRIperformancedata Waste bytypeanddisposalmethod Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic substances (ODS) Emissions ofozone-depleting nryidrc Soe2 H msin GRIperformancedata Energy indirect (Scope2)GHGemissions Direct (Scope1)GHGemissions Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic Water consumption neatoswt ae sasae eoreSustainabilityReport(2020)p.121 Interactions withwaterasashared resource Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic nrycnupinwti h raiainSustainabilityReport(2020)p.121,GRIperformancedata Energy consumptionwithintheorganization Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic GRI Standards is describedintheSustainabilityReport(2020)p.118f. The managementapproach –resources andenvironmental protection The topicof„sewageandwaste“wasnotidentifiedasamaterialissue. GRI performancedata Sustainability Report(2020)p.122,GRIperformancedata is describedintheSustainabilityReport(2020)p.118f. The managementapproach –resources andenvironmental protection GRI performancedata is describedintheSustainabilityReport(2020)p.118f. The managementapproach –resources andenvironmental protection The topic„water“wasnotidentifiedasamaterialissue. is describedintheSustainabilityReport(2020)p.118f. The managementapproach –resources andenvironmental protection Page number/URL/Explanation 5 HENSOLDT SUSTAINABILITY REPORT GRI 403-9 GRI 403-6 GRI 403-5 GRI 403-4 GRI 403-3 GRI 403-2 GRI 403-1 and safety Occupational health GRI 403(2018): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI 401-3 GRI 401-1 Employment GRI 401(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI Indicator Occupational healthandsafety Employment Work-related injuries Promotion ofworkerhealth and safety Worker trainingonoccupationalhealth and safety and communicationonoccupationalhealth Worker participation,consultation, Occupational healthservices and incidentinvestigation Hazard identification,risk assessment, and managementsystem Occupational health Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic Parental leave e mlyehrsadepoe unvrSustainabilityReport(2020)p.99,GRIperformancedata New employeehires andemployeeturnover Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic GRI Standards GRI performancedata Sustainability Report(2020)p.109ff. Sustainability Report(2020)p.110f. Sustainability Report(2020)p.109ff. Sustainability Report(2020)p.110f. Sustainability Report(2020)p.110f. Sustainability Report(2020)p.109ff. Sustainability Report(2020)p.108f. GRI performancedata Sustainability Report(2020)p.98f. Page number/URL/Explanation

136 | 137 GRI 405-2 GRI 405-1 equal opportunity Diversity and GRI 405(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI 404-3 GRI 404-1 Training andeducation GRI 404(2016): GRI 103-3 GRI 103-2 GRI 103-1 Management approach GRI 103: GRI Indicator Further topics Diversity andequalopportunities Training andEducation Product responsibility Social engagement Corporate DigitalResponsibility of womentomen Ratio ofbasicsalaryandremuneration and employees bodies Diversity ofgovernance Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic development reviews regular performanceandcareer Percentage ofemployeesreceiving per yearemployee Average hoursoftraining Evaluation ofthemanagementapproach and itscomponents The managementapproach and itsboundary Explanation ofthematerialtopic GRI Standards Sustainability Report(2020)p.122ff. Sustainability Report(2020)p.112ff. Sustainability Report(2020)p.92ff. of compensationiscarriedoutbothatcompanylevelandholistically. salary, whichiswhyitnotcomparableasanoverallfigure. Ananalyses be madeupofotheradditionalcomponentsinadditiontothemonthly groups andnotfortheGroup asawhole.Total compensationcanalso analysis canonlybemadeforselectedindividualcompaniesofemployee are applied.Thecompensation systemsare company-specific,soaratio collective agreements, respective collectivecompensatonagreements that there are nosystematicdifferences. Inthecompaniescovered by just liketheremuneration principles,are independentofgenderand For us,itisamatteroffact,thattheprovisions ofcollectiveagreements, Sustainability Report(2020)p.104ff., GRIperformancedata Sustainability Report(2020)p.104f. GRI performancedata Sustainability Report(2020)p.102,GRIperformancedata Sustainability Report(2020)p.100f. Page number/URL/Explanation GRI Standards Indicator Performance

Environment GRI Standards Indicator Performance Energy 302-1 Energy consumption within the organization Diesel & Fuel oil 137,276 kwH

Natural gas 637,540 t CO2e Electricity (non-renewable energies) 16,159,353 kWh Electricity (renewable energies) 28,464,381 kWh District heating 27,265,094 kWh Water 303-5 Water consumption 81,571 m3

Emissions 305-1 Direct GHG emissions (Scope 1, market-based approach) 34,913 t CO2

305-2 Indirect GHG emissions (Scope 2, market-based approach) 62,057 t CO2 305-6 Emissions of ozone-depleting substances (ODS) 1,339 kg Volatile organic compounds (VOC) 5,168 kg Waste 306-2 Waste Non-hazardous waste 1,135 metric ton Hazardous waste 113 metric ton Perimeter: HENSOLDT, consolidated companies (sales representations excluded, site Aalen excluded due to new site established in fall 2020) incl. Cyber GmbH

Social Employment GRI 401-1 New employee hires and employee turnover Voluntary ﬂuctation 147 Non-voluntary ﬂuctation* 152 Active workforce by contract type* Permanent 5,115 Temporary 112 Percentage of part-time employees 6 % Employees by geographical area Hensoldt total 5,227 Germany 3,842 France 578 South Africa 624 UK 183 GRI 401-3 Paternity/maternity leave taken in the reporting period 214

Total female paternity/maternity leave taken 87

Total male paternity/maternity leave taken 127

Health & Safety GRI 403-9 Work-related injuries Number of work-related injuries 29 Lost Time Injury Frequency Rate (LTIFR) 0.49 Fatalities 0 Number of reportabel work-related illness cases 1 Training & Education GRI 404-1 Average hours of training and development per year per employee

Total number of training hours 47,868 Training provided by Hensoldt Academy 90 % (compared to external providers) GRI 404-3 Percentage of employees receiving regular performance 94 % and professionel development revies Diversity & Equal Opportunity GRI 405-1 Diverstiy in control bodies and among employees Percentage of women in the active workforce 22 % Percentage of women in management positions 10 % (senior manager positions) Percentage of women in management positions (executive positions) 13 % Percentage of women in the Executive Commitee 22 %

Perimeter: HENSOLDT, consolidated companies (sales representations excluded) incl. Cyber GmbH * including retirement, leave after partial retirement, mututal agreement, early termination, end of limited contract) **students excluded HENSOLDT SUSTAINABILITY REPORT HENSOLDT SUSTAINABILITY 5 138 | 139 Limited Assurance Report of the Independent Auditor regarding Inquiries of group-level personnel who are Conclusion responsible for determining disclosures on 1 the separate non-financial group report concepts, due diligence processes, results Based on the procedures performed and the evidence and risks, performing internal control functions obtained, nothing has come to our attention that causes and consolidating disclosures us to believe that the separate non-financial group report of Hensoldt AG for the period from January 1 To the Supervisory Board of Hensoldt AG, Taufkirchen Audits or Reviews of Historical Financial Information”, Inspection of selected internal and external documents to December 31, 2020 has not been prepared, in all published by IAASB. Accordingly, we have to plan material respects, in accordance with §§ 315b and We have performed an independent limited assurance and perform the assurance engagement in such a Analytical procedures for the evaluation of data and 315c in conjunction with 289c to 289e HGB. engagement on the separate non-financial group way that we obtain limited assurance as to whether of the trends of quantitative disclosures as reported report as well as the sections ”Business modell” and any matters have come to our attention that cause at group level by all sites Recommendation “Organisation and infrastrcture” of the group us to believe that the report of the company for the management report, that are qualified as a part by period from January 1 to December 31, 2020 has Evaluation of local data collection, validation and Without affecting the conclusion above, we recommend reference, (further “Report”) of Hensoldt AG, Taufkirchen not been prepared, in all material respects, in reporting processes as well as the reliability of reported a further formalization of the (local) data collection, validation (further “company” or “Hensoldt AG”) according to accordance with §§ 315b and 315c in conjunction data based on a sample of the site Ulm in Germany. and reporting processes. § 315b and 315c in conjunction with 289c to 289e of with 289c to 289e HGB. We do not, however, issue the German Commercial Code (HGB), for the period a separate conclusion for each disclosure. As the Assessment of the overall presentation Restriction of Use/General Engagement Terms from January 1 to December 31, 2020. assurance procedures performed in a limited assurance of the disclosures engagement are less comprehensive than in a This assurance report is issued for purposes of the Management’s Responsibility reasonable assurance engagement, the level of In our opinion, we obtained sufficient and appropriate Supervisory Board of Hensoldt AG, Taufkirchen, only. assurance obtained is substantially lower. The evidence for reaching a conclusion for the assurance We assume no responsibility with regard to any The legal representatives of the company are choice of assurance procedures is subject to engagement. third parties. responsible for the preparation of the report in the auditor’s own judgement. accordance with §§ 315b, 315c in conjunction Independence and Quality Assurance Our assignment for the Supervisory Board of Hensoldt AG, with 289c to 289e HGB. 1. Within the scope of our engagement we performed, on the Part of the Auditing Firm Taufkirchen, and professional liability as descriped above was amongst others, the following procedures: governed by the General Engagement Terms for Wirtschafts- This responsibility of the legal representatives includes In performing this engagement, we applied the legal prüfer and Wirtschaftsprüfungsgesellschaften (Allgemeine the selection and application of appropriate methods Inquiries of group-level personnel who are provisions and professional pronouncements regarding Auftragsbedingungen für Wirtschaftsprüfer und Wirtschafts- to prepare the report and the use of assumptions and responsible for the materiality analysis in order independence and quality assurance, in particular prüfungsgesellschaften) in the version dated January 1, 2017 estimates for individual disclosures which are reasonable to understand the processes for determining the Professional Code for German Public Auditors and (https://www.kpmg.de/bescheinigungen/lib/aab_english.pdf). under the given circumstances. Furthermore, the legal material topics and respective reporting Chartered Accountants (in Germany) and the quality By reading and using the information contained in this representatives are responsible for the internal controls boundaries for Hensoldt AG assurance standard of the German Institute of Public assurance report, each recipient confirms notice of the they deem necessary for the preparation of the report Auditors (Institut der Wirtschaftsprüfer, IDW) regarding provisions contained therein including the limitation of that is free of – intended or unintended – material A risk analysis, including media research, to identify quality assurance requirements in audit practice our liability as stipulated in No. 9 and accepts the validity misstatements. relevant information on Hensoldt Group‘s sustainability (IDW QS 1). of the General Engagement Terms with respect to us. performance in the reporting period Practitioner’s Responsibility Assessment of the suitability of internally Munich, March 8, 2021 It is our responsibility to express a conclusion on the developed definitions report based on our work performed within a limited KPMG AG assurance engagement. Evaluation of the design and the implementation Wirtschaftsprüfungsgesellschaft of systems and processes for the collection, [Original German version signed by:] We conducted our work in the form of a limited assurance processing and monitoring of disclosures, including engagement in accordance with the International data consolidation, on environmental, employee Standard on Assurance Engagements (ISAE) 3000 and social matters, respect for human rights, and (Revised): “Assurance Engagements other than anti-corruption and bribery matters

1 Our engagement applied to the German version of the separate non-ﬁnancial group report 2020. This text is a translation of the Independent Assurance Report issued in German, whereas the German text is authoritative. Hell ppa. Auer 140 | 141 Publication details Image copyright

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