Hensoldt (HAG) CMD 2024 summary

Strategic vision and growth targets

• North Star strategy targets €5 billion in revenues by 2030, focusing on organic growth, international expansion, digitalization, and ESG integration.

• Four strategic axes: deliver at scale, grow with focus, pioneer Software-Defined Defense, and lead teams into the future, underpin the Hensoldt 2.0 transformation.

• Regional revenue targets for 2030: 50% Germany, 30% Europe, 20% selected international markets, reflecting a shift toward greater internationalization.

• M&A and partnerships focus on digitalization and internationalization, with €600 million in additional revenues targeted by 2030.

• ESG acquisition expands addressable market by €6 billion annually and is expected to deliver €19 million in cost synergies and EBITDA impact by 2028.

Operational excellence and capacity expansion

• Hensoldt GO program and new divisional setup drive industrialization, agility, and supply chain resilience, with >10% of engineering workload externalized.

• Major investments in production and logistics: Ulm site capacity for TRML-4D radars increased from 2 units in 2021 to 18 units, and SPEXER capacity to reach 97 units by 2025.

• New logistics center in Laichingen and global SAP rollout enhance supply chain and business process efficiency, with OneSAP Now ERP transformation to be fully implemented by 2027.

• Optronics segment returns to growth in 2024, with new facilities supporting ramp-up in production and profitability.

• Production capacity increased at Ulm, Oberkochen, and Wetzlar sites, with automation and headcount expansion.

Technological leadership and Software-Defined Defense

• Focus on digitalization, connectivity, and AI, with a shift to Software-Defined Defense as a core differentiator and new business model.

• Multi-Domain Solutions division formed by integrating ESG and SDAS, offering platform-agnostic, product-independent solutions across air, land, sea, cyber, and space.

• Key products like Sferion, TwinSens, and Kalaetron Integral leverage sensor fusion, AI, and edge computing for enhanced situational awareness and operational effectiveness.

• R&D investments at 5% of revenue, with customer-funded R&D expected to reach 15% by 2025, supporting next-generation programs like FCAS and NNbS.

• Technological leadership in AI, sensor data fusion, and software-defined defence underpins future solutions and revenue streams.