Rheinmetall AG Annual Report I 2013 Key Figures 2013 I Rheinmetall Group
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Rheinmetall AG Annual Report i 2013 Key figures 2013 i Rheinmetall Group 2013 2012 2011 2010 2009 2008 2007 Order Situation Order intake € million 5,805 5,311 4,189 3,974 4,649 3,780 4,040 Order backlog (Dec. 31) € million 6,475 5,405 4,950 5,136 4,940 3,683 3,239 Sales/Results Sales € million 4,613 4,704 4,454 3,989 3,420 3,869 4,005 of which generated abroad % 72 72 70 69 66 67 67 Operating result € million 213 268 342 289 153 230 259 Operating result margin % 4.6 5.7 7.7 7.2 4.5 5.9 6.5 EBIT 1 € million 112 296 354 297 15 245 270 EBIT margin 1 % 2,4 6.3 7.9 7.4 0.4 6.3 6.7 EBT 1 € million 35 216 295 229 (46) 193 213 Return on capital employed (ROCE) 2 % 4.4 11.5 14.9 14.6 0.8 12.5 14.5 Balance Sheet Total equity € million 1,339 1,465 1,546 1,355 1,134 1,080 1,059 Total assets € million 4,857 4,899 4,832 4,460 3,835 3,612 3,448 Equity ratio % 27.6 29.9 32.0 30.4 29.6 29.9 30.7 Cash and cash equivalents € million 445 501 535 629 557 203 163 Total assets less cash and cash equivalents € million 4,412 4,398 4,297 3,831 3,278 3,409 3,285 Net financial debt 3 € million 138 98 130 76 (44) 205 236 Leverage ratio 4 % 3.1 2.2 2.9 1.9 (1.3) 6.0 7.2 Net gearing 5 % 10.3 6.7 8.4 5.6 (3.9) 19.0 22.3 Cash Flow Cash flow from operating activities € million 195 359 290 147 331 318 235 Cash flow from investing activities € million (173) (219) (251) (258) (140) (211) (190) Cash flow from financing activities € million (75) (174) (131) 156 180 (67) (80) Cash Flow € million 22 140 39 (111) 191 107 45 Human Resources Employees (Dec. 31) according to capacity 21,081 21,767 21,516 19,979 19,766 21,020 19,185 Domestic 10,568 10,667 10,708 10,656 10,750 10,962 10,749 Foreign 10,513 11,100 10,808 9,323 9,016 10,058 8,436 Defence 9,193 9,623 9,833 9,037 9,304 9,217 7,175 Automotive 11,744 12,003 11,548 10,816 10,339 11,682 11,895 Holding/service companies 144 141 135 126 123 121 115 Share Stock price, annual closing € 44.85 36.40 34.24 60.17 44.74 22.90 54.38 Stock price, annual high € 46.04 47.23 66.46 60.17 44.74 53.81 74.12 Stock price, annual low € 35.01 31.36 30.35 42.50 20.41 16.82 48.04 Earnings per share € 0.75 4.55 5.55 4.23 (1.60) 4.09 4.15 Dividend per share € 0.40 1.80 1.80 1.50 0.30 1.30 1.30 1 IAS 19: 2007 to 2011 not adjusted retroactively 2 EBIT/average capital employed 3 Financial liabilities less cash and cash equivalents 4 Net financial liabilities/total assets adjusted for cash and cash equivalents 5 Net financial liabilities/equity Security & Mobility 2 Corporate Sectors 6 Divisions 4,613 Operating Result € million Sales € million 213 Employees 6.5 € billion 21,081 Order Backlog R&D Capital Expenditure Intensity % 4.9 205 € million Contents Letter to shareholders 2 Supervisory Board of Rheinmetall AG 3 Report of the Supervisory Board 9 Executive Board of Rheinmetall AG 10 Rheinmetall on the capital markets SUMMARIZED MANAGEMENT REPORT FOR 2013 Corporate governance 18 Structure and business activities 28 Corporate governance report 36 Disclosures required by takeover law 39 Board remuneration report Economic report 43 Executive Board statement on the general economic situation 44 General economic conditions 52 Rheinmetall Group 58 Defence sector 61 Automotive sector 64 Financing 66 Research and development 74 Capital expenditures 77 Rheinmetall AG 80 Risks and opportunities 95 Assessment by the Executive Board of the overall risk situation 96 Prospects 99 Executive Board statement on expected development Entrepreneurial responsibility 101 Employees 107 Corporate Social Responsibility 111 Corporate compliance Report on post-balance sheet date events 114 Events after the balance sheet date CONSOLIDATED FINANCIAL STATEMENTS 2013 118 Consolidated balance sheet 119 Consolidated income statement 122 Consolidated cash flow statement 123 Statement of changes in equity 124 Notes to the consolidated financial statements 183 List of shareholdings 188 Responsibility statement 189 Auditors’ report and opinion ADDITIONAL INFORMATION 192 Offices held by Supervisory and Executive Board members 196 Senior Executive Officers, Management Board Defence, Executive Board Automotive This annual report was published at the accounts press conference on March 19, 2014 Letter to shareholders Supervisory Board of Rheinmetall AG Shareholder representatives Employee representatives Permanent committees Klaus Greinert Dr. Rudolf Luz Personnel Committee Chairman Vice Chairman Klaus Greinert (Chairman) Toni Wicki First appointed: July 10, 1997 First appointed: January 26, 2001 Dr. Rudolf Luz Wolfgang Tretbar Appointed until close of the 2017 Appointed until close of the 2017 Annual General Meeting Annual General Meeting Professor Dr. Andreas Georgi Roswitha Armbruster First appointed: June 10, 2002 First appointed: May 15, 2012 Appointed until close of the 2017 Appointed until close of the 2017 Annual General Meeting Annual General Meeting Dr. Siegfried Goll Julia Cuntz Audit Committee Klaus Greinert (Chairman) First appointed: February 28, 2008 First appointed: May 15, 2012 Professor Dr. Susanne Hannemann Dr. Rudolf Luz Appointed until close of the 2018 Appointed until close of the 2017 Heinrich Kmett Annual General Meeting Annual General Meeting Professor Dr. Susanne Hannemann Heinrich Kmett First appointed: May 15, 2012 First appointed: November 14, 2002 Appointed until close of the 2017 Appointed until close of the 2017 Annual General Meeting Annual General Meeting DDr. Peter Mitterbauer Dr. Michael Mielke Mediation Committee Klaus Greinert (Chairman) First appointed: October 4, 2006 First appointed: September 1, 2010 Professor Dr. Frank Richter Dr. Rudolf Luz Appointed until close of the 2017 Appointed until close of the 2017 Harald Töpfer Annual General Meeting Annual General Meeting Detlef Moog Wolfgang Müller First appointed: July 8, 2010 First appointed: March 25, 2004 Appointed until close of the 2016 Appointed until close of the 2017 Annual General Meeting Annual General Meeting Professor Dr. Frank Richter Harald Töpfer Nomination Committee Klaus Greinert (Chairman) First appointed: January 1, 2006 First appointed: February 9, 2004 Professor Dr. Frank Richter Appointed until close of the 2017 Appointed until close of the 2017 Annual General Meeting Annual General Meeting Toni Wicki Wolfgang Tretbar First appointed: December 6, 2010 First appointed: July 10, 1997 Appointed until close of the 2016 Appointed until close of the 2017 Annual General Meeting Annual General Meeting 2 Letter to shareholders Report of the Supervisory Board OVERVIEW OF THE ACTIVITIES OF THE SUPERVISORY BOARD DURING THE 2013 FISCAL YEAR During the 2013 fiscal year, the Supervisory Board of Rheinmetall AG performed with due care the duties and tasks assigned to it in accordance with the law and Company bylaws, and those defined in the German Corporate Governance Code and its rules of procedure. We supervised the Executive Board closely, provided it with support and advice on matters concerning the management of the Company and monitored its management activities. The Supervisory and Executive Boards worked together in an open atmosphere of trust. The Supervisory Board was directly involved at an early stage in all decisions of key strategic, operational and economic importance to the Group. We examined the Company’s situation, challenges and prospects in detail. During the four regular Supervisory Board meetings held during 2013, the Executive Board reported on matters including the progress of business activities, the current earnings and financial position, general economic conditions, the Company’s prospects when faced with competition from abroad, and options, opportunities and risks in regional growth markets. Medium-term strategic and operational targets were discussed, along with their economic significance for Rheinmetall and their expected impact on the Company’s financial situation. Aside from the Group’s corporate orientation and the structural development of the Defence and Automotive sectors, discussions focused on measures to ensure competitiveness and future viability. In addition to a number of other topics, the implementation status of initiated restructuring measures, employment policy, the risk situation, risk management and the Company’s compliance were also discussed. We were provided with a detailed explanation whenever actual business performance deviated from previous plans and targets. Measures or transactions of the Executive Board requiring approval in accordance with legal and statutory provisions and the rules of procedure were submitted to us in good time for a decision to be made. After thorough analysis and detailed discussions, the Supervisory Board made its decisions and granted its approval for the applications made on the basis of thoroughly informative documents and detailed draft resolutions. The members of the Supervisory Board again performed their activities with a great sense of dedication and responsibility in the 2013 fiscal year. At the Supervisory Board meetings held in March, May and December, one of the sixteen members of the Supervisory Board was absent in each case. All members attended the Supervisory Board meeting in August. All committee members were present at each committee meeting. Between meetings, we were informed of the current situation of the Rheinmetall Group and its two sectors in writing on a quarterly basis. In addition to the Supervisory Board meetings, the CEO and I were in close contact.