1 Introduction 1.1. What is this Report About? 1.2. Definitions 1.3. Summary Methodology 1.4. SDI Terrorism Index 1.5. About Strategic Defence Intelligence 2 Executive Summary 3 Market Attractiveness and Emerging Opportunities 3.1. Defense Market Size Historical and Forecast 3.1.1. Germany's defense expenditure expected to increase at a CAGR of 1.34% over 2017-2021 3.1.2. Maintenance of the armed forces and peacekeeping operations to drive defense expenditure over the forecast period 3.1.3. German defense expenditure as a percentage of GDP expected to decrease 3.2. Analysis of Defense Budget Allocation 3.2.1. Germany to allocate a higher share toward revenue expenditure over the forecast period 3.2.2. Capital expenditure to increase at a CAGR of 1.32% over the forecast period 3.2.3. Revenue expenditure to cumulate US$133.5 billion over the forecast period 3.2.4. Per capita defense expenditure expected to increase marginally over 2017-2021 3.3. Homeland Security Market Size and Forecast 3.3.1. German homeland security budget to increase at a CAGR of 5.62% 3.3.2. Counter terrorism and cyber security to drive homeland security expenditure 3.3.3. Germany falls under "moderately affected" of terrorism category 3.4. Benchmarking with Key Global Markets 3.4.1. German defense budget expected to increase marginally over the forecast period 3.4.2. Germany's defense expenditure expected to be one of the top among European countries 3.4.3. Germany allocates a lower share of GDP for defense compared to other European countries 3.4.4. Germany faces a moderate threat from foreign terrorist organizations 3.5. Market Opportunities: Key Trends and Growth Stimulators 3.5.1. Transport Helicopter 3.5.2. Multi-role Aircraft 3.5.3. Transport Aircraft 3.5.4. Infantry Fighting Vehicles 4 Defense Procurement Market Dynamics 4.1. Import Market Dynamics 4.1.1. Defense imports are expected to remain steady during the forecast period 4.1.2. Germany sourced most of its arms imports from the US 4.1.3. Missiles and sensors dominate military hardware imports 4.2. Export Market Dynamics 4.2.1. Arms exports recovered in the last two years 4.2.2. The US and Israel are Germany's biggest arms importers 4.2.3. Ships and armored vehicles are the main exported defense products 5 Industry Dynamics 5.1. Five Forces Analysis 5.1.1. Bargaining power of supplier: low 5.1.2. Bargaining power of buyer: high 5.1.3. Barrier to entry: low 5.1.4. Intensity of rivalry: low 5.1.5. Threat of substitution: low 6 Market Entry Strategy 6.1. Market Regulation 6.1.1. Investment policy promotes 100% FDI in the defense industry 6.2. Market Entry Route 6.2.1. Foreign defense OEMs form large conglomerates to enter the market 6.2.2. Foreign OEMs establish subsidiaries or form JVs to enter the industry 6.3. Key Challenges 6.3.1. Project delays deter defense industry growth 6.3.2. German arms exports to large defense markets outside the EU are minimal 7 Competitive Landscape and Strategic Insights 7.1. Competitive Landscape Overview 7.1.1. Foreign OEMs have strong collaborations with domestic defense firms 7.2. Key Companies 7.2.1. Diehl Stiftung: overview 7.2.2. Diehl Stiftung: products and services 7.2.3. Diehl Stiftung: recent announcements and strategic initiatives 7.2.4. Diehl Stiftung: alliances 7.2.5. Diehl Stiftung: recent contract wins 7.2.6. Airbus Group: overview 7.2.7. Airbus Group: products and services 7.2.8. Airbus Group: recent announcement and strategic initiatives 7.2.9. Airbus Group: alliances 7.2.10. Airbus Group: recent contract wins 7.2.11. Airbus Group: financial analysis 7.2.12. Heckler andKoch: overview 7.2.13. Heckler andKoch: products and services 7.2.14. Heckler and Koch: recent announcements and strategic initiatives 7.2.15. Heckler and Koch: recent contract wins 7.2.16. MAN Truck and Bus AG: overview 7.2.17. MAN Truck and Bus AG: products and services 7.2.18. MAN Truck and Bus AG: recent announcement and strategic initiatives 7.2.19. MAN Truck and Bus AG: alliances 7.2.20. MAN Truck and Bus AG: recent contract wins 7.2.21. Airbus Helicopters: overview 7.2.22. Airbus Helicopters: products and services 7.2.23. Airbus Helicopters: recent announcements and strategic initiatives 7.2.24. Airbus Helicopters: alliances 7.2.25. Airbus Helicopters: recent contract wins 7.2.26. ESG Elektroniksystem-und Logistik: overview 7.2.27. ESG Elektroniksystem-und Logistik: products and services 7.2.28. ESG Elektroniksystem-und Logistik: recent announcements and strategic initiatives 7.2.29. ESG Elektroniksystem- und Logistik: alliances 7.2.30. ESG Elektroniksystem- und Logistik: recent contract wins 7.2.31. ThyssenKrupp Marine Systems: overview 7.2.32. ThyssenKrupp Marine Systems: products and services 7.2.33. ThyssenKrupp Marine Systems: recent announcements and strategic initiatives 7.2.34. ThyssenKrupp Marine Systems: alliances 7.2.35. ThyssenKrupp Marine Systems: recent contract wins 7.2.36. Thales Deutschland: overview 7.2.37. Thales Deutschland: products and services 7.2.38. Thales Deutschland: recent announcements and strategic initiatives 7.2.39. Thales Deutschland: alliances 7.2.40. Thales Deutschland: recent contract wins 7.2.41. MBDA: overview 7.2.42. MBDA: products and services 7.2.43. MBDA: recent announcements and strategic initiatives 7.2.44. MBDA: alliances 7.2.45. MBDA: recent contract wins 7.2.46. Eurofighter Jagdflugzeug: overview 7.2.47. Eurofighter Jagdflugzeug: products and services 7.2.48. Eurofighter Jagdflugzeug: recent announcements and strategic initiatives 7.2.49. Eurofighter Jagdflugzeug: recent contract wins 7.2.50. Rheinmetall: overview 7.2.51. Rheinmetall: products and services 7.2.52. Rheinmetall: recent announcement and strategic initiatives 7.2.53. Rheinmetall: alliances 7.2.54. Rheinmetall: recent contract wins 7.2.55. Rheinmetall: financial analysis 8 Business Environment and Country Risk 8.1. Demographics and Social Statistics 8.1.1. Population - Rural 8.1.2. Population - Urban 8.1.3. Population - Number of Households 8.2. Economic Performance 8.2.1. Gross Domestic per Capita 8.2.2. Gross Domestic Product, current US$ 8.2.3. Exports of Goods and Services 8.2.4. Imports of Goods and Services 8.2.5. Gross National Disposable Income 8.2.6. Manufacturing Output 8.2.7. Consumer Price Index 8.2.8. Wholesale Price Index 8.2.9. Local Currency Unit per US$ 8.2.10. Market Capitalization of Listed Companies 8.2.11. Market Capitalization of Listed Companies as a percentage of GDP 8.2.12. Total Government Cash Surplus/Deficit 8.2.13. Government Cash Surplus/Deficit 8.2.14. Central Government Debt 8.2.15. Central Government Debt as a percentage of GDP 8.2.16. Goods Exports as a percentage of GDP 8.2.17. Goods Imports as a percentage of GDP 8.2.18. Goods Trade Surplus/Deficit as a percentage of GDP 8.2.19. Services Imports as a percentage of GDP 8.2.20. Services Exports as a percentage of GDP 8.2.21. Services trade surplus/deficit as a percentage of GDP 8.2.22. International reserves, including Gold 8.3. Energy and Utilities 8.3.1. Total Conventional Thermal Electricity Net Generation 8.3.2. Hydroelectricity Net Generation 8.3.3. Nuclear Electricity Net Generation 8.3.4. Total Conventional Thermal Electricity Installed Capacity 8.3.5. Total Electricity Exports 8.3.6. Total Electricity Imports 8.3.7. Proved reserves of Natural Gas 8.3.8. Total Petroleum Consumption 8.3.9. Crude Oil Proved reserves 8.3.10. Total Non-Hydro Renewable Electricity Net Generation 8.4. Infrastructure Quality and Availability 8.4.1. Roads, total network 8.4.2. Air transport, freight 8.4.3. Overall Construction 8.5. Minerals 8.5.1. Mining, Manufacturing, Utilities Output 8.6. Technology 8.6.1. Research and development expenditure 8.6.2. Patents Granted 8.7. Telecommunication 8.7.1. Telephone lines 8.7.2. Telephone lines Penetration Rate 9 Appendix 9.1. About SDI 9.2. Disclaimer

Table 1: German Defense Expenditure (US$ Billion), 2012-2016 Table 2: German Defense Expenditure (US$ Billion), 2017-2021 Table 3: German Defense Expenditure (EUR Billion), 2012-2016 Table 4: German Defense Expenditure (EUR Billion), 2017-2021 Table 5: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP Growth, 2012-2016 Table 6: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP Growth, 2017-2021 Table 7: German Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2016 Table 8: German Defense Budget Split Between Capital and Revenue Expenditure (%), 2017-2021 Table 9: German Defense Capital Expenditure (US$ billion), 2012-2016 Table 10: German Defense Capital Expenditure (US$ billion), 2017-2021 Table 11: German Defense Capital Expenditure (EUR Billion), 2012-2016 Table 12: German Defense Capital Expenditure (EUR Billion), 2017-2021 Table 13: German Defense Revenue Expenditure (US$ billion), 2012-2016 Table 14: German Defense Revenue Expenditure (US$ billion), 2017-2021 Table 15: German Defense Revenue Expenditure (EUR Billion), 2012-2016 Table 16: German Defense Revenue Expenditure (EUR Billion), 2017-2021 Table 17: German Per Capita Defense Expenditure (US$), 2012-2016 Table 18: German Per Capita Defense Expenditure (US$), 2017-2021 Table 19: German Homeland Security Budget (US$ Billion),2012-2016 Table 20: German Homeland Security Budget (US$ Billion), 2017-2021 Table 21: German Homeland Security Budget (EUR Billion), 2012-2016 Table 22: German Homeland Security Budget (EUR Billion), 2017-2021 Table 23: Benchmarking with Key Markets - 2012-2016vs. 2017-2021 Table 24: SDI Terrorism Index Table25: Key Foreign Players and Operations in the German Defense Industry Table26:Diehl Stiftung - Product focus Table27:Diehl Stiftung- Alliances Table28:Diehl Stiftung- Recent Contract Wins Table29:Airbus Group- Product focus Table30: Airbus Group- Alliances Table31:Airbus Group- Recent Contract Wins Table32:Heckler andKoch - Product focus Table33:Heckler andKoch - Recent Contract Wins Table34:MAN Truck and Bus AG - Product focus Table35:MAN Truck and Bus AG - Alliances Table 36:MAN Truck and Bus AG - Recent Contract Wins Table37:Airbus Helicopters- Product focus Table38:Airbus Helicopters - Alliances Table39:Airbus Helicopters - Recent Contract Wins Table40:ESG Elektroniksystem-und Logistik- Product focus Table41:ESG Elektroniksystem-und Logistik- Alliances Table42:ESG Elektroniksystem-und Logistik- Recent Contract Wins Table43:ThyssenKrupp Marine Systems - Product focus Table44:ThyssenKrupp Marine Systems - Alliances Table45:ThyssenKrupp Marine Systems - Recent Contract Wins Table46:Thales Deutschland - Product focus Table47:Thales Deutschland - Alliances Table48:Thales Deutschland - Recent Contract Wins Table49:MBDA - Product focus Table50:MBDA - Alliances Table51:MBDA - Recent Contract Wins Table52:Eurofighter Jagdflugzeug- Product focus Table53:Eurofighter Jagdflugzeug- Recent Contract Wins Table54:Rheinmetall - Product focus Table55:Rheinmetall - Alliances Table56:Rheinmetall - Recent Contract Wins Figure 1: German Defense Expenditure (US$ Billion),2012-2016 Figure 2: German Defense Expenditure (US$ Billion), 2017-2021 Figure 3: German Defense Expenditure (EUR Billion), 2012-2016 Figure 4: German Defense Expenditure (EUR Billion), 2017-2021 Figure 5: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditures as a Percentage of GDP Growth, 2012-2016 Figure 6: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP Growth, 2017-2021 Figure 7:German Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2016 Figure 8: German Defense Budget Split Between Capital and Revenue Expenditure (%), 2017-2021 Figure 9: German Defense Capital Expenditure (US$ billion), 2012-2016 Figure 10: German Defense Capital Expenditure (US$ billion), 2017-2021 Figure 11: German Defense Capital Expenditure (EUR Billion), 2012-2016 Figure 12: German Defense Capital Expenditure (EUR Billion), 2017-2021 Figure 13: German Defense Revenue Expenditure (US$ billion), 2012-2016 Figure 14: German Defense Revenue Expenditure (US$ billion), 2017-2021 Figure 15: German Defense Revenue Expenditure (EUR Billion), 2012-2016 Figure 16: German Defense Revenue Expenditure (EUR Billion), 2017-2021 Figure 17: German Per Capita Defense Expenditure (US$), 2012-2016 Figure 18:German Per Capita Defense Expenditure (US$), 2017-2021 Figure 19: German Homeland Security Budget (US$ Billion),2012-2016 Figure 20: German Homeland Security Budget (US$ Billion), 2017-2021 Figure 21: German Homeland Security Budget (EUR Billion), 2012-2016 Figure 22: German Homeland Security Budget (EUR Billion), 2017-2021 Figure 23: SDI Terrorism Heat Map, 2016 Figure 24: SDI Terrorism Index, 2016 Figure 25: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021 Figure 26: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2016 and 2021 Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016 Figure 28: Transport Helicopter Market Size (US$ Million), 2016-2026 Figure 29: Multi-role Aircraft Market Size (US$ Million), 2016-2026 Figure 30: Transport Aircraft Market Size (US$ Million), 2016-2026 Figure 31: IFV Market Size (US$ Million), 2016-2026 Figure 32: German Defense Import Trend, 2011-2015 (TIV values) Figure 33: German Defense Imports by Country (%), 2011-2015 Figure 34: German Defense Imports by Category (%), 2011-2015 Figure 35: German Defense Export Trend, 2011-2015 (TIV values) Figure 36: German Defense Exports by Country (%), 2011-2015 Figure 37: German Defense Exports by Category (%), 2011-2015 Figure 38: Industry Dynamics Porter's Five Forces Analysis Figure 39: Airbus Group - Revenue Trend Analysis (EUR Billion), 2011-2015 Figure 40: Airbus Group - Operating Profit Trend Analysis (EUR Million), 2011-2015 Figure 41: Airbus Group - Net Profit Trend Analysis (EUR Million), 2011-2015 Figure 42: Rheinmetall - Revenue Trend Analysis (EUR Billion), 2010-2014 Figure 43: Rheinmetall - Operating Profit Trend Analysis (EUR Million), 2010-2014 Figure 44: Rheinmetall - Net Profit Trend Analysis (EUR Million), 2010-2014 Figure 45: Germany Population - Rural (In Millions), 2015-2024 Figure 46: Germany Population - Urban (In Millions), 2015-2024 Figure 47: Germany Population - Number of Households (In Millions), 2008-2017 Figure 48: Germany GDP per capita, 2015-2024 Figure 49: Germany Gross Domestic Product (current US$ Billion),2015-2024 Figure 50: Germany Exports of Goods and Services (current US$ Billion), 2004-2013 Figure 51: Germany Imports of Goods and Services (current US$ Billion), 2004-2013 Figure 52: Germany Gross National Disposable Income (US$ Billion), 2003-2012 Figure 53: Germany Manufacturing Output (US$ Billion), 2003-2012 Figure 54: Germany Consumer Price Index, 2015-2024 Figure 55: Germany Wholesale Price Index, 2003-2012 Figure 56: Germany LCU per US$, 2015-2024 Figure 57: Germany Market Capitalization of Listed Companies (US$ Billion), 2003-2012 Figure 58: Germany Market Capitalization of Listed Companies as a Percentage of GDP, 2003-2012 Figure 59: Germany Government Cash Surplus/Deficit (LCU Billion), 2003-2012 Figure 60: Germany Government Cash Surplus/Deficit as a Percentage of GDP,2003-2012 Figure 61: Germany Central Government Debt (LCU Billion), 2003-2012 Figure 62: Germany Central Government Debt as a Percentage of GDP, 2003-2012 Figure 63: Germany Goods Exports as a Percentage of GDP, 2005-2012 Figure 64: Germany Goods Imports as a Percentage of GDP,2005-2012 Figure 65: Germany Goods Trade Surplus/Deficit as a Percentage of GDP, 2005-2012 Figure 66: Germany Services Imports as a Percentage of GDP, 2005-2012 Figure 67: Germany Services Exports as a Percentage of GDP, 2005-2012 Figure 68: Germany Services Trade Surplus/Deficit as a Percentage of GDP, 2005-2012 Figure 69: Germany International Reserves, including Gold (US$ Billion), 2003-2012 Figure 70: Germany Total Conventional Thermal Electricity Net Generation (Billion kWh), 2002-2011 Figure 71: Germany Hydroelectricity Net Generation (Billion kWh), 2003-2012 Figure 72: Germany Nuclear Electricity Net Generation (Billion kWh), 2003-2012 Figure 73: Germany Total Conventional Thermal Electricity Installed Capacity (Million kW), 2001-2010 Figure 74: Germany Total Electricity Exports (Billion kWh), 2003-2012 Figure 75: Germany Total Electricity Imports (Billion kWh), 2003-2012 Figure 76: Germany Proved Reserves of Natural Gas (Trillion Cubic feet), 2004-2014 Figure 77: Germany Total Petroleum Consumption (Thousand Barrels per Day), 2004-2013 Figure 78: Germany Crude Oil Proved reserves(Billion Barrels), 2005-2014 Figure 79: Germany Total Non-Hydro Renewable Electricity Net Generation (Billion Kw), 2003-2012 Figure 80: Germany Roads (total route-Km), 2002-2010 Figure 81: Germany Air Transport, Freight (Million ton-Km), 2003-2012 Figure 82: Germany Overall Construction (US$ Billion), 2006-2014 Figure 83: Germany Mining, Manufacturing, Utilities Output(US$ Billion), 2003-2012 Figure 84: Germany Research and Development (thousands LCU), 2001-2010 Figure 85: Germany Patents Granted, 2004-2013 Figure 86: Telephone Lines (In Mn), 2003-2012 Figure 87: Germany Telephone Lines Penetration Rate (per 100 people), 2003-2012

Heckler and Koch GmbH (HK) MAN Truck and Bus AG Airbus Helicopters ESG Elektroniksystem-und Logistik Diehl Stiftung ThyssenKrupp Marine Systems Thales Deutschland Airbus Group MBDA Eurofighter Jagdflugzeug Rheinmetall