Fact Book Fiscal Year 2009 I. Continental at a Glance
Equity and Debt Markets Relations Fact Book FY 2009
2 / © Continental AG Continental at a Glance
Continental AG, based in Hanover, Germany. The company was founded in 1871. It operates worldwide as an automotive supplier with sales of € 20,095.7 mn in 2009. Continental employees numbered 134,434 at the end of 2009. Acquisitions in the fields of brakes and chassis (Teves 1998) as well as electronic technologies (Temic 2001) have transformed Continental from a pure rubber based manufacturer into a leading automotive technology supplier. With the acquisition of Phoenix in 2004, Continental became one of the world’s largest non-tire rubber product manufacturers. Acquisition of Motorola’s automotive electronic business in 2006 took active/passive safety competence of our Automotive Systems division to the next level and improved market position in North America. With the acquisition of Siemens VDO Automotive AG in 2007, Continental is now an integrated automotive supplier of system solutions for powertrain and safety technologies as well as information management and has improved its market position in Europe, North America and Asia.
Equity and Debt Markets Relations Fact Book FY 2009
3 / © Continental AG Continental at a Glance Executive Board – 160 Years of Experience
Supervisory Board headed by Prof. Dr. Wolfgang Reitzle
Dr. Elmar Degenhart Wolfgang Schäfer Chairman of the Executive Board Chief Financial Officer
Quality & Environment, Corp. Com. Finance, Controlling, Law, IT 17 years of industry experience 23 years of industry experience
Heinz-Gerhard Wente Dr. Ralf Cramer ContiTech Division Chassis & Safety Division Director of HR and Labor relations 14 years of industry experience
30 years of industry experience
Nikolai Setzer José Avila Powertrain Division Passenger and Light Truck Tires Division 20 years of industry experience
13 years of industry experience
Dr. Hans-Joachim Nikolin Helmut Matschi Commercial Vehicle Tires Division, Interior Division Purchasing 23 years of industry experience RUBBER GROUP
20 years of industry experience AUTOMOTIVE GROUP
Equity and Debt Markets Relations Fact Book FY 2009
4 / © Continental AG Continental at a Glance Leading Global Position in Key Automotive Electronics Applications
Chassis & Safety Powertrain Interior
Actuation Diesel Injection Systems Body & Security Products Advanced Driver Assistant Systems Gasoline Injection Systems CV Interiors Airbag Electronics Transmission Control Units Device Connectivity Units Electronic Brake Systems (“EBS”) Double Clutch Transmission Embedded Telematics Foundation Brake Systems control units Instrumentation and Displays Multimedia Systems
Sales 2009 € 4,373.6 mn Sales 2009 € 3,399.2 mn Sales 2009 € 4,362.7 mn % of total 22% % of total 17% % of total 21%
ESC* installation rate by region (%) Gasoline Direct Injection Systems CCE** Electronics market ($bn) installation rate by region (%) .3% 35% CAGR = 7 99% 89% 26% 75% 25.6 63% 18.0 11% 4%
EUNAFTANAFTA EU EU NAFTA EU NAFTA 2009E 2014E Source: Global Insight, The Freedonia Group 2009 2014E 2009 2014E * Electronic Stability Control (“ESC”) is a type of Electronic Brake Systems ** Comfort, convenience and entertainment
Equity and Debt Markets Relations Fact Book FY 2009
5 / © Continental AG Continental at a Glance Leading Global Position in Tire and Non-Tire Rubber
Passenger and Light Truck Tires Commercial Vehicle Tires ContiTech
Europe overall Europe overall Automotive hoses & hose lines Europe OE Europe OE Automotive interior trim Europe Winter Tires Europe Industrial Tires Conveyor belts North America among Top 5 North America among Top 5 Marine & oil hoses & hose lines Multiple V-ribbed belts & timing belts Railway air springs Truck & bus air springs Sales 2009 € 4,696.4 mn Sales 2009 € 1,065.6 mn Sales 2009 € 2,406.1 mn % of total 23% % of total 5% % of total 12%
Sales breakdown Sales breakdown Sales breakdown
OE 23% OE 15%
Non-OE OE 50% 50%
Non-OE Non-OE 85% 77%
Equity and Debt Markets Relations Fact Book FY 2009
6 / © Continental AG Continental at a Glance Continental Corporation – Sales / Net income* (€ million)
¼HGB ¼US GAAP ¼IFRS 24,239
20,096
16,619 14,887 13,837 12,597 11,233 11,408 11,534 10,115 9,132 Sales 1,507 1,602 1,676 5,719 6,743 1,157 694 855 322 398 607 533 EBIT 33 -296 930 982 1,021 716 -1,040 165 138 235 205 226 314 NIAT** -258
-1,124 -1,649
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*** 2008 2009
* From 1998 until 2003 US GAAP / from 2004 onwards IFRS ** Net income attributable to the shareholders of the parent under IFRS since 2004 *** Since December 1, 2007 including Siemens VDO
Equity and Debt Markets Relations Fact Book FY 2009
7 / © Continental AG Continental at a Glance Continental Corporation Worldwide
Nearly 190 sites for production and R&D in 39 countries. Headquarters in Hanover, Germany.
Status: December 2009
Equity and Debt Markets Relations Fact Book FY 2009
8 / © Continental AG Continental at a Glance Development of Consolidated Sales by Region 24.2 (€ billion) 4% 20.1 10% 5% 19% 16.6 14% 14.9 Other Countries 13.8 3% 18% 8% 3% Asia 3% 7% 21% 36% 7% 21% 20% NAFTA Region 34% 37% 36% 37% Rest of Europe
Germany 31% 29% 34% 32% 31%
2005 2006 2007* 2008 2009 * Since December 2007 incl. Siemens VDO
Equity and Debt Markets Relations Fact Book FY 2009
9 / © Continental AG Continental at a Glance Development of Consolidated Sales by Division (€ billion) 24.2
12% 20.1 ContiTech 6% 16.6 12% Commercial Vehicle 14.9 21% 5% Tires 13.8 18% Passenger and Light 23% Truck Tires 19% 9% 20% 21% Automotive Systems** 10% 10% 29% 22% Chassis & Safety 31% 32% 16% 17% Powertrain 28%
38% 40% 24% Interior 7% 21% 9%
2005 2006 2007* 2008 2009 * Since December 2007 incl. Siemens VDO ** Until 2006
Equity and Debt Markets Relations Fact Book FY 2009
10 / © Continental AG Continental at a Glance Number of Employees by Region
151,654 139,155 5% 134,434
12% 5% 6% 13% 14% 17% Other Countries 16% 85,224 14% 79,849 Asia 5% 5% 11% 32% 10% 33% 33% NAFTA Region 17% 15% Rest of Europe 31% 32% Germany 34% 33% 33% 39% 35%
2005 2006 2007* 2008 2009 * Since December 2007 incl. Siemens VDO
Equity and Debt Markets Relations Fact Book FY 2009
11 / © Continental AG Continental at a Glance Number of Employees by Division
151,654
139,155 134,434 16% ContiTech 16% 6% 16% Commercial Vehicle 6% 17% 6% Tires 85,224 19% 79,849 Passenger and Light 20% Truck Tires 18% 26% Automotive Systems** 28% 19% 20% 10% 10% Chassis & Safety 21% 29% 18% 31% 18% Powertrain
35% Interior 31% 22% 22% 20%
2005 2006 2007* 2008 2009 * Since December 2007 incl. Siemens VDO ** Until 2006
Equity and Debt Markets Relations Fact Book FY 2009
12 / © Continental AG II. Continental Strategy
Equity and Debt Markets Relations Fact Book FY 2009
13 / © Continental AG Continental Strategy Systematic Entrepreneurial Approach Environment Safety
Increasing supplier Leading share of value chain market position Growth in electronics – 85% through suppliers Sales Cost non-OE conscious- > 40% Growth in ness difficult markets
Partnership Globalization Value with creation customers
Information Affordable Cars
Equity and Debt Markets Relations Fact Book FY 2009
14 / © Continental AG Continental Strategy Megatrend Environment: Key Drivers for Zero Emissions
Equity and Debt Markets Relations Fact Book FY 2009
15 / © Continental AG Continental Strategy Reduction of CO2 Emissions*: Solutions by Continental
Clean Diesel (SCR**) 20-24% Continental offers a broad range of technologies to reduce CO2 Diesel direct injection 18-22% emissions
Hybrid electric vehicle 5-20% Continental products currently in series production are capable to Gasoline direct injection 5-15% reduce CO2 emissions already by about 26 g/km Telematics, ACC, ADAS 5% Europe and US: Huge potential Energy management (AES***) 5% with fuel direct injection systems Future potential from turbocharger Tires (rolling resistance, TPMS) 2-5% and Telematics technology Powertrain (DCT) 4% Continental is among top 3 suppliers in the world for CO2 Transmission (POD****) 3% reducing technologies
Energy management (POD****) 1-2%
Brake Systems 1-2%
* Saving potential compared with gasoline port fuel injection Euro 4 ** Selective Catalytic Reduction *** Advanced Energy Supply **** Power-on-demand
Equity and Debt Markets Relations Fact Book FY 2009
16 / © Continental AG Continental Strategy EU, NHTSA and ECCJ Initiatives – Towards Cleaner Mobility
EU* USA** Japan***
EU sets average CO2 NHTSA and EPA to ECCJ targets to improve emissions from 2012 at 130 establish a National Fuel fuel efficiency standards by g/km (currently 160 g/km) by Efficiency Policy (NFEP): 23.5% in 2015 vs. 2004: means of improvement in Increase CAFE from 25 mpg Increase average level of vehicle technology to 35.5 mpg by 2016 for fuel efficiency from From 2020 onwards the passenger cars and light 13.6 km/l to 16.8 km/l for target is 95 g of CO2/km for trucks combined passenger cars new car fleet Target is equivalent to Target is equivalent to From 2012 onwards excess reduce CO2 from 210 g/km reduce CO2 from 170 g/km emissions fine for not to 180 g/km to 140 g/km meeting targets From 2020 onwards the CAFE target is equivalent to
130g/km
Emerging markets likely to follow Europe/USA/Japan on fuel consumption standards
* Regulation (EC) No 443/2009 ** Refer to the joint proposal of NHTSA and EPA May 2009 and President Obama´s NFPE; The White House, May 19, 2009 *** Refer to “Law on Rationalization of Energy Use” of the Ministry of Economics, Trade and Industry
Equity and Debt Markets Relations Fact Book FY 2009
17 / © Continental AG Continental Strategy Megatrend Safety: Development of Road Safety in Europe
EU road fatalities
75.346 70.674 65.441 63.903 63.155 60.267 57.728 59.401 58.982 56.459 54.314 53.331 50.355 47.266 54.314 45.312 51.297 42.960 42.492 48.279 39.093 45.262 42.244 39.227 36.209 33.192 30.174 27.157
EU fatalities EU target to halve the number of fatalities by 2010
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: CARE (EU road accident database)
Equity and Debt Markets Relations Fact Book FY 2009
18 / © Continental AG Continental Strategy EU and NHTSA Initiatives – Towards Safer Mobility
EU USA***
Mandatory equipment of: NHTSA: ESC by November 2014 for all new small passenger cars ESC mandatory for all cars sold in the US / and light vehicles & some new heavy duty vehicles* installation rate Advanced emergency brake system, lane departure warning for all new large passenger and heavy duty 2009: 55% vehicles by November 2015* 2010: 75% Tire Pressure Monitoring System (TPMS) by November 2011: 95% 2014 for all passenger cars and light duty vehicles*
Requirements on frontal protection systems for small
passenger cars and light-duty vehicles starting November
2009**
Emergency brake assist for all new small passenger cars and certain light duty vehicles by November 2011**
Emerging markets likely to follow Europe/USA on ESC regulation
* Regulation (EC) No 661/2009; starting 2011; ** Regulation (EC) No 78/2009; starting 2009; small passenger cars for maximum 8 passengers *** Refer to Federal Motor Vehicle Safety Standard No. 126 of the National Highway Traffic Safety Administration 04/2007
Equity and Debt Markets Relations Fact Book FY 2009
19 / © Continental AG Continental Strategy ContiGuard®: Safety Solutions by Continental
Equity and Debt Markets Relations Fact Book FY 2009
20 / © Continental AG Continental Strategy EU Directive on Labeling of Tires*
Directive comes into force starting November 2012 Passenger car and van tires shall be equipped with a sticker on the tire tread displaying external rolling noise measured value, fuel efficiency and, for passenger tires, on top the wet grip class EU member states can provide incentives for tires which are, with respect to wet grip and fuel efficiency class “C” or better EU member states are responsible for the market surveillance and specification of penalties for non- compliance
EU commission has to review this regulation within five years
Tire complies with 2012 noise limit
* Regulation (EC) No 661/2009
Equity and Debt Markets Relations Fact Book FY 2009
21 / © Continental AG Continental Strategy Truck Tire Technology for Lowest Overall Driving Costs
Continental has started a worldwide initiative to launch new products Latest tire generation reduced rolling resistance coefficient a further 8% Continental’s focus is on overall driving costs ContiCostCalculator (CCC) is a , tool certified by DEKRA (a worldwide certification authority) to calculate the overall operational costs for fleet customers By comparing mileage, retreads, * fuel consumption and payload, the CCC tool shows that Continental’s new products lead to the lowest overall driving costs
* Net price of diesel
Equity and Debt Markets Relations Fact Book FY 2009
22 / © Continental AG Continental Strategy Megatrend Information: Solutions by Continental Information management in the vehicle for driver and passengers
Driver & passengers 1 With our intuitive and ergonomic HMI, we capture commands, prioritize and present information.
3 We manage and optimize the information flow by systems integration of components. Vehicle 2 We add new functions by providing a connection to the outside world as well as value-added services.
Infrastructure Devices Services Other cars
Equity and Debt Markets Relations Fact Book FY 2009
23 / © Continental AG Continental Strategy Definition of “Low Cost/Affordable Car“
Germany: VW Fox Eastern Europe: China: Chery QQ Dacia Logan €10,000 Low Cost Car Mature Market
India: Maruti 800
€5,000 Low Cost Car Emerging Market
€1,700 India: Tata Nano Western Japan Eastern China India Europe Europe
Equity and Debt Markets Relations Fact Book FY 2009
24 / © Continental AG Continental Strategy Affordable Cars* – Mobility for Everyone
Europe Dacia – Sandero 09E-14E (k units)
Source: Global Insight Q3 2009
Emerging Asian Countries
* Trend to affordable cars would be qualified as market trend
Equity and Debt Markets Relations Fact Book FY 2009
25 / © Continental AG Continental Strategy “Sales Non-OE > 40%” OE Non-OE 33% of sales outside OE in 2009 ContiTech (12% of total 50% 50% sales)
Non-OE OE 33% Commercial 67% Vehicle Tires (5% of total 15% 85% sales)
Passenger and Light Truck Tires (23% of total 23% 77% sales) Powertrain Chassis & Safety 25% Interior 33% (21% of total 75% 25% Interior sales) 24%
Powertrain (17% of total 100% ContiTech sales) 9% Commercial Vehicle Passenger and Light Tires Truck Tires Chassis & Safety 1% 8% (22% of total 100% sales)
Equity and Debt Markets Relations Fact Book FY 2009
26 / © Continental AG Continental Strategy “Cost Consciousness” – Production in Best-Cost Countries Europe 85%
68% 68% 69%
60% 56%
30% 27% 27% 27% 26% 23% 20% 21% 15% 15% 15% Rest of World 13%
81%
72% Chassis & Powertrain* Interior* PLT** CVT** ContiTech* 68% Safety* 65% 62% 65% 62% 2007 2008 2009 57% 55% 51% 45% 45% 42%
31%
23% 23% 19% 11%
Chassis & Powertrain* Interior* PLT** CVT** ContiTech* Safety*
* Based on sales ** Based on units 2007 2008 2009
Equity and Debt Markets Relations Fact Book FY 2009
27 / © Continental AG III. Continental Corporation
Equity and Debt Markets Relations Fact Book FY 2009
28 / © Continental AG Continental Corporation Consolidated Key Figures (€ million) 2007* 2008 2009
Sales 16.619,4 24.238,7 20.095,7 EBITDA 2.490,6 2.771,4 1.591,2 EBIT 1.675,8 -296,2 -1.040,4 EBIT adjusted 1) 1.747,0 1.165,8 in % of sales 1) 7,3 5,8 Net interest expense -154,2 -706,7 -720,8 Income tax expense -471,7 -75,0 154,3 Minority interests -29,3 -45,6 -42,3 NIAT** 1.020,6 -1.123,5 -1.649,2 Earnings per share (in €) 6,79 -6,84 -9,76
R&D expense 834,8 1.498,2 1.356,3 in % of sales 5,0 6,2 6,7 Capex 2) 896,9 1.595,2 860,1 in % of sales 5,4 6,6 4,3 Depreciation & amortization 3) 814,8 3.067,6 2.631,6 in % of sales 4,9 12,7 13,1 thereof impairment4) 27,1 1.341,4 993,0 Free Cash Flow -10.625,6 628,5 1.640,3 ROCE (avg.) in % 15,9 -1,5 -6,5 * Since December 2007 incl. Siemens VDO ** Net income atrributable to the shareholders of the parent 1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments 4) 2008: including goodwill impairment of € 1,230.0 mn 2009: including goodwill impairment of € 875.8 mn
Equity and Debt Markets Relations Fact Book FY 2009
29 / © Continental AG Continental Corporation Sales, EBITDA & EBITDA margin
(€ million) 24,238.7 -17.1% 20,095.7 Adj. EBITDA FY 2008 16,619.4 € 3,001.3 mn Adj. EBITDA Sales -42.6% FY 2009 € 2,353.6 mn 2,771.4 EBITDA 2,490.6
1,591.2 EBITDA margin 15.0% 11.4% 7.9%
FY 07 FY 08 FY 09 adj. EBIT 1,747.0 * 1,165.8 **
adj. EBIT margin 7.3% 5.8%
* EBIT w/o amortization of intangibles from PPA, consolidation (€ -20.0 mn) and special effects (€ -1,517.0 mn) ** EBIT w/o amortization of intangibles from PPA, consolidation (€ -3.1 mn) and special effects (€ -1,747.9 mn)
Equity and Debt Markets Relations Fact Book FY 2009
30 / © Continental AG Continental Corporation Adj. EBIT Walk-Down
(€ million) 872.1 1,165.8 5.8%
875.8 3.1
61.4 Interior Of which a.o.: 447.4 Clairoix & Traiskirchen Powertrain € 220 mn 455.2 Huntsville € 83 mn 367.0 Chassis & Safety Stöcken € 46 mn CT Fluid € 33 mn Karben € 32 mn -5.2% Babenhausen € 31 mn
-1,040.4 Autonet € 74 mn Termination payments € 117 mn
PPA* Adjusted Adjusted Reported effect EBIT 2009 EBIT EBIT 2009 EBIT Goodwill Goodwill impairment Additional Additional Consolidation Consolidation special effects special * Amortization of intangibles from PPA incl. impairments on intangible assets from PPA
Equity and Debt Markets Relations Fact Book FY 2009
31 / © Continental AG Continental Corporation Equity Bridge 2008 to 2009 Net loss € -1,649.2 mn (€ million) Completed Jan. 28, 2010
1,050.0
5,529.9 318.2
455.2 5,111.7
42.6 22.4% Equity ratio 875.8 0 138.4 22.2% 4,061.7 17.6% y F/X Others Equity Equit Capital YE 2009 YE YE 2008 YE Increase Dividend YE 2009 Pro forma Pro Goodwill impairment Goodwill PPA after tax* Net income Net impairment before PPA* and PPA* before * Amortization of intangibles from PPA
Equity and Debt Markets Relations Fact Book FY 2009
32 / © Continental AG Continental Corporation Net Indebtedness Walk-Down (FY 2008 to FY 2009)
(€ million) € 475.6 mn purchase of 24.9% of shares of 273.9 ContiTech AG by CTA 97.8 € 112.1 refund of CTA 859.4 € 95.1 mn qualified as non-plan assets
549.8 10,483.5 10,483.5 0.0 319.1
714.8 143.8 chg. in working
capital € 595.0 52.3 8,895.5
1,143.9
189.6% 7,845.5 1,050.0 153.5% Capex 2008 Capital Chg. in in Chg. Increase Net debt Net Net debt Net Dividend Chg. in in Chg. payables Chg. in in Chg. (FY 2009) (FY (FY 2008) (FY Chg. in in Chg. Disposals Other FCF Other Increase Pro forma Pro inventories receivables after Capital Acquisitions pension liab. pension F/X and and F/X other * Of subsidiaries and management units
Equity and Debt Markets Relations Fact Book FY 2009
33 / © Continental AG Continental Corporation Interest result YE 2009 € -720.8 mn: Net Indebtedness & Gearing Ratio Interest income: € 30.3 mn Interest expenses: € -768.6 mn Positive F/X effects: € 17.5 mn (€ million) (mainly not cash effective) 225.9% 219.0% US-GAAP IFRS 210.0% 189.6% 186.1% Equivalent to 168.2% 153.5% 158.3% 189.0% under IFRS accounting 110.7% 11,041.5 11,041.5 11,041.5 10,856.4 10,856.4 10,856.4 2,601.1
58.9% 10,483.5 10,483.5 10,483.5 9,746.6 9,746.6 9,746.6
1,899.0 9,464.8 9,464.8 9,464.8 30.0% 25.1% 8,895.5 8,895.5 8,895.5 1,168.6 13.0% 1,181.0 7,845.5 7,845.5 7,845.5 881.1 493.2 20.4 6.9 0.1 0.1 13.7 617.5 517.7 525.0 32.8 29.5 28.2 0.4 13.7
YE YE YE YE YE YE YE YE Q1 H1 9M YE Pro Forma
2001 2002 2003 2004 2005 2006 2007 2008 2009
Off balance sheet debt Net indebtedness Gearing Ratio * * Including net proceeds from capital increase in Jan 2010 in the amount of € 1.05 bn
Equity and Debt Markets Relations Fact Book FY 2009
34 / © Continental AG Continental Corporation Financial Indebtedness - Maturity Scheme
Pro-forma for capital increase and Forward Start YE 2009 (€ million) Facility
Cash 5,575 8,025 FSF € 2,450 mn; 4,745 1,713 Net proceeds from capital increase of Total maturities Cash Fully 2,450 appr. € 1,050 mn 2010 € 1,245 mn available 1,713 thereof Tranche D credit lines
Fully € 684 mn due in 2,196 available 08/2012 credit lines 5,575 2,196 1,245 298 29 19 48 684 298 29 19 48 561 2010 2011 2012 2013 2014 Later 2010 2011 2012 2013 2014 Later
Cash and undrawn (fully committed) credit lines 2012 maturities from VDO facility as of today: amounted to € 3.9 bn at YE 2009 Tranche C € 5.0 bn Tranche D amounted to € 684 mn at YE 2009 and is Tranche D at drawn amount
now accounted as maturity in 2010 but will not FSF* € 2.45 bn
become due before Aug 2012
* FSF will pay down outstanding amounts under Tranche B in August 2010
Equity and Debt Markets Relations Fact Book FY 2009
35 / © Continental AG Continental Corporation Purchasing / Production Materials 2009
Total production material purchased in 2009 € 8.2 bn Purchasing Contracts: (70% of total purchased volume)
► We are aiming for long-term contracts Components with our strategic suppliers. (e.g. electronic and sensor modules, electro mechanical and mechanical components) ► Oil derivatives for chemical products cause a time difference until realization in purchase price of 2-6 months from Oil Based 48% Chemical spot price. Products (e.g. synthetic ► Main sources for natural rubber are rubber, carbon 14% black) Thailand, Malaysia and Indonesia. 5% 19% 14% ► Continental has a wide range of worldwide sources for production Metal Parts Natural Rubber (e.g. drawn materials. and turned parts) Others (textiles, plastics, brake pads)
Equity and Debt Markets Relations Fact Book FY 2009
36 / © Continental AG IV. Market Data
Equity and Debt Markets Relations Fact Book FY 2009
37 / © Continental AG Market Data Increasing Installation Rates of Electronic Brake Systems Installation Rates for Passenger Cars & Light Trucks Europe North America
100% 100% 80% EBS 80% EBS ESC ESC 60% 60% 40% 40% 20% 20% ABS/TCS ABS/TCS 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Japan China* 100% 100% EBS 80% EBS 80% 60% 60% 40% 40% ABS/TCS 20% ESC ABS/TCS 20% ESC 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Source: Continental Estimates *Excl. local trucks
Equity and Debt Markets Relations Fact Book FY 2009
38 / © Continental AG Market Data Installation Rates of Fuel Injection Systems*
Installation Rates Passenger Cars & Light Trucks
Europe North America 100% 100%
80% 80% Gasoline port fuel injection Diesel injection 60% 60%
40% 40% Gasoline direct injection Gasoline port fuel injection 20% Gasoline direct injection 20% Diesel injection
0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Japan China 100% 100%
80% 80% Gasoline port fuel injection Gasoline port fuel injection 60% 60%
40% 40% Gasoline direct injection 20% 20% Gasoline direct injection Diesel injection Diesel injection 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Source: Continental Estimates *Based on production of diesel and gasoline engines
Equity and Debt Markets Relations Fact Book FY 2009
39 / © Continental AG Market Data Increasing Installation Rates of Double Clutch Transmission*
Installation Rates Passenger Cars & Light Trucks Europe North America 100% 100% MT= Manauel Transmission 80% 80% AT DCT= Double Clutch Transmission 60% 60% AMT= Automated Manuel Transmission DCT 40% CVaT=Continous Variable Transmission 40% CVaT AT= Automatic Transmission MT AMT 20% 20%
0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
100% Japan 100% China
80% 80% AT MT 60% 60%
40% MT CVaT 40% CVaT AT 20% 20% AMT DCT AMT DCT 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Source: Continental Estimates *Based on production of gearboxes
Equity and Debt Markets Relations Fact Book FY 2009
40 / © Continental AG Market Data Increasing Installation Rates of Embedded Telematics*
40%
30%
North America
20%
Japan 10% Europe
China
0% 2008 2009 2010 2011 2012 2013 2014
Source: Continental Estimates *Based on sales (units)
Equity and Debt Markets Relations Fact Book FY 2009
41 / © Continental AG Market Data Increasing Installation Rates of Keyless Entry Systems*
North America 100% Europe 100%
80% 80% Active keyless entry systems Active keyless entry systems 60% 60%
40% 40%
20% 20% Passive keyless entry systems Passive keyless entry systems 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 Japan China 80% 80%
Active keyless entry systems 60% 60% Active keyless entry systems
40% 40%
20% 20% Passive keyless entry systems Passive keyless entry systems 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Source: Strategy Analytics *Based on sales (units)
Equity and Debt Markets Relations Fact Book FY 2009
42 / © Continental AG Market Data Increasing Installation Rates of Multimedia Systems*
Europe North America 100% 100%
80% 80% Radio
60% Radio 60%
40% 40%
20% 20% Multimedia systems Multimedia systems 0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
100% Japan 100% China
80% 80%
Radio 60% Radio 60%
40% 40%
Multimedia systems 20% 20% Multimedia systems
0% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Source: Continental Estimates * Navigation stand-alone system and navigation systems with enriched multimedia functions
Equity and Debt Markets Relations Fact Book FY 2009
43 / © Continental AG Market Data Production of Light Vehicles* 2008 – 2011
(in million units)
2008 2009 2010 2011
Western Europe 14.6 11.9 11.8 12.7 Eastern Europe 6.6 4.9 4.8 5.5 NAFTA 12.6 8.5 10.2 11.8 South America 3.8 3.6 3.8 4.0 Asia 28.7 28.2 30.6 33.3 Africa & Middle East 1.9 1.8 1.8 2.0
Total 68.258.863.069.3
Source: Global Insight and Continental estimates * Estimates for 2009-2011 for passenger cars and light trucks < 6 tons (including vans)
Equity and Debt Markets Relations Fact Book FY 2009
44 / © Continental AG Market Data Production of Heavy Vehicles* 2008 – 2011
(in thousand units)
2008 2009 2010 2011
Western Europe 548 196 269 429 Eastern Europe 197 71 94 147 NAFTA 353 210 250 356 South America 193 129 141 167 Asia 1,415 1,241 1,356 1,529
Total 2,706 1,846 2,110 2,628
Source: Global Insight and Continental estimates * Estimates for 2009-2011 for trucks > 6 tons
Equity and Debt Markets Relations Fact Book FY 2009
45 / © Continental AG Market Data World Light Vehicle Tire Sales* 2008 - 2012 (in million units) 2008 2009 2010 2011 2012
Americas 392 358 375 401 422 NAFTA 322 292 305 328 344 South America 7066707378 Europe 375 342 347 367 396 Western Europe 274 263 260 271 283 Central Europe 36 34 35 38 40 Eastern Europe 65 45 52 58 73 Asia 352 338 361 395 433 Oceania 2119202123 Africa 32 31 33 35 37 Middle East & Turkey 63 64 68 74 82
Total 1,234 1,151 1,203 1,294 1,392
Source: LMC World Tyre Forecast Service, September 2009 and Continental estimates * Estimates for 2009-2012 for OE and Replacement
Equity and Debt Markets Relations Fact Book FY 2009
46 / © Continental AG Market Data Medium and Heavy Truck Tire Sales* 2008 - 2012
(in million units)
2008 2009 2010 2011 2012
Americas 37 31 34 38 41 NAFTA 2319212426 South America 1412131415 Europe 28 20 21 25 28 Western Europe 14 10 10 12 14 Central Europe 22223 Eastern Europe 11 8 9 10 12 Asia 74 71 74 82 89 Oceania 22222 Africa 66667 Middle East & Turkey 10 10 10 11 12
Total 156 139 147 163 179
Source: LMC World Tyre Forecast Service, September 2009 * Estimates for 2009-2012 for OE and Replacement
Equity and Debt Markets Relations Fact Book FY 2009
47 / © Continental AG Market Data Replacement Tire Market – Sales Outlook (in million units) Replacement of passenger, light truck and Replacement of truck tires 4x4 tires
256.7 269.6 66.3 252.9
247.1 59.9 224.6 59.2 206.4 17.8 16.4 212.5 15.2 205.3 203.2 12.5 10.5 11.3 10.7 57.6 64.2 69.3 9.4 8.7
7.9 48.9 51.0 53.7 6.9 7.3
2009* 2010* 2011* 2009* 2010* 2011* North America Asia Asia North America Western Europe South America Eastern/Central Europe Eastern/Central Europe South America Western Europe Source: LMC World Tyre Forecast Service, September 2009 and Continental estimates * Estimates
Equity and Debt Markets Relations Fact Book FY 2009
48 / © Continental AG V. Automotive Group
Equity and Debt Markets Relations Fact Book FY 2009
49 / © Continental AG Automotive Group Key Figures
(€ million) 2007* 2008 2009
Sales 7,295.9 14,900.0 12,042.4 EBITDA 903.7 1,428.8 608.9 in % of sales 12.4 9.6 5.1 EBIT 504.3 -1,205.8 -1,561.6 in % of sales 6.9 -8.1 -13.0 EBIT adjusted 1) 824.6 192.0 in % of sales 1) 5.7 1.6
Operating Assets (avg.) 6,364.6 14,734.3 12,015.9 ROCE (avg.) in % 7.9 -8.2 -13.0 R&D expense 623.9 1,276.2 1,144.3 in % of sales 8.6 8.6 9.5 Capex 2) 474.9 1,095.6 538.1 in % of sales 6.5 7.4 4.5 Depreciation & amortization 3) 399.4 2,634.6 2,170.5 in % of sales 5.5 17.7 18.0 thereof impairment4) 6.8 1,327.5 949.0
* Since December 2007 incl. Siemens VDO 1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments 4) 2008: including goodwill impairment of € 1,230.0 mn 2009: including goodwill impairment of € 875.8 mn
Equity and Debt Markets Relations Fact Book FY 2009
50 / © Continental AG Automotive Group Financials
(€ million)
Automotive Group: Sales by division and organic growth Adj. EBIT* and adj. EBIT* margin by division
4,362.7 12,042.4
-23.1% - 93.1 -17.2% 353.4
3,399.2 8.1%
-10.8% 56.4 0.2 192.0 4,373.6 -6.5% 1.3% 1.6% Organic sales growth -15.4% -218.0
C&S PT I cons. total C&S PT I cons. total
* W/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations Fact Book FY 2009
51 / © Continental AG Automotive Group Sales Structure by Region
Sales in 2009: € 12.0 bn
Others 5% Germany Asia 31% 18%
NAFTA 18%
Rest of Europe 28%
Equity and Debt Markets Relations Fact Book FY 2009
52 / © Continental AG V.1. Chassis & Safety
Equity and Debt Markets Relations Fact Book FY 2009
53 / © Continental AG Chassis & Safety Business Structure
Chassis & Safety
Electronic Hydraulic Passive Safety & Sensorics Chassis Components Brake Systems Brake Systems ADAS
● Hydraulic-electronic ● Calipers & discs ● Wheel speed sensors ● Airbag control units ● Electronic control units (ECU) control units (HECU) ● Drum brakes ● Transmission speed sensors with & w/o roll over sensors for: - ABS & ESC (tier 1 customer) - ABS ● Brake hoses ● Engine speed sensors ● Hybrid gateways - Chassis control management -ESC ● Boosters ● Sensor clusters ● Pre-crash sensors - Damping control - MAB/MIB ● Tandem master cylinders ● Inertial measuring units ● Force sensor interfaces - Dynamic roll stabilization ● Electric parking brakes ● Torque sensors ● Occupant classification - Electric parking brake ● Software functions ● Pedal modules ● Steering angle sensors systems ● Accelerator force feedback - Regenerative brake ● Brake pressure regulators ● Buckle switch sensors pedal system ● Chassis sensors ● Advanced driver assistance ● Active rear axle kinematics - Hill start assist ● Seat position sensors systems: ● Steering electronic control unit - Hill descent control - Adaptive cruise control ● Steering power pack - Deflation detection - Collision mitigation ● Suspension systems & system components (e. g. air spring system - Lane keeping assistance module, air supply unit, - Hydraulic brake assist - Lane change assistance suspension ECU, sensors) - Trailer stability ● Washer systems and using: program components (e.g. hose, nozzle, - RADAR
-LIDAR pump, reservoir) for HLC & windshield washer - CAMERA - Sensor fusion ECU
Equity and Debt Markets Relations Fact Book FY 2009
54 / © Continental AG Chassis & Safety Key Figures
(€ million) 2007* 2008 2009
Sales 4,648.6 5,134.0 4,373.6 EBITDA 796.4 789.9 601.6 in % of sales 17.1 15.4 13.8 EBIT 567.0 303.1 -102.5 in % of sales 12.2 5.9 -2.3 EBIT adjusted 1) 512.0 353.4 in % of sales 1) 10.0 8.1
Operating Assets (avg.) 2,876.6 4,494.4 4,034.0 ROCE (avg.) in % 19.7 6.7 -2.5 R&D expense 347.5 423.6 380.8 in % of sales 7.5 8.3 8.7 Capex 2) 279.8 336.0 159.5 in % of sales 6.0 6.5 3.6 Depreciation & amortization 3) 229.4 486.8 704.1 in % of sales 4.9 9.5 16.1 thereof impairment4) 5.1 150.6 370.4
* Since December 2007 incl. Siemens VDO 1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments 4) 2008: including goodwill impairment of € 145.2 mn 2009: including goodwill impairment of € 367.0 mn
Equity and Debt Markets Relations Fact Book FY 2009
55 / © Continental AG Chassis & Safety Financials
(€ million) 5,134.0 Sales 4,648.6 4,373.6 -14.8%
EBITDA 796.4 789.9 601.6 17.1% -23.8% EBITDA margin 15.4% 13.8%
FY 07 FY 08 FY 09 353.4 ** adj. EBIT 512.0 * 8.1% adj. EBIT margin 10.0%
* EBIT w/o amortization of intangibles PPA, consolidation (€ 5.4 mn) and special effects (€ -156.4 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -402.9 mn)
Equity and Debt Markets Relations Fact Book FY 2009
56 / © Continental AG Chassis & Safety Sales Structure by Region Sales in 2009: € 4.4 bn
Others Asia 3% Germany 20% 35%
NAFTA 16%
Rest of Europe 26%
Equity and Debt Markets Relations Fact Book FY 2009
57 / © Continental AG Chassis & Safety Market Position for Electronic Brake Systems 2009
Europe North America Advics TRW 8% Others 10% TRW 11% Bosch Others 4% 16% 42% Bosch Continental Continental 37% 44% 28% World Nissin Others Mobis Kogyo 5% Mando 4% 3% 4% Advics Continental 9% 32% TRW Bosch 9% 34% Asia/Pacific South America Nissin Mando Others Kogyo 8% TRW 13% 7% Advics Mobis 17% TRW Bosch 20% 5% Continental 3% 47% Bosch 23% Continental 22% 22% Others 13% Source: Continental Estimates
Equity and Debt Markets Relations Fact Book FY 2009
58 / © Continental AG Chassis & Safety Market Position for Foundation Brake Systems 2009
Europe North America Mando Mando Others Others 2% Advics 5% 21% 11% 13% Continental TRW 9% 40% Continental 33% Akebono 13%
Bosch Bosch World TRW Mando 22% 14% 17% Akebono 6% 7% Others Continental 24% 17%
Advics TRW 10% 24%
South America Bosch Asia/ Pacific Bosch 12% Continental * 13% TRW Others 3% Others 35% 39% 2% Bosch 6% Continental Mando 50% 10% TRW Akebono 10% Advics 12% Source: Continental Estimates * Continental market share would be 8% including SAIC JV 20%
Equity and Debt Markets Relations Fact Book FY 2009
59 / © Continental AG Chassis & Safety Market Position for Actuation 2009 Europe North America Others KDAC Mando Nissin Kogyo Advics 14% 8% 5% 5% Others 12% TRW 7% 21% Bosch Continental Continental Bosch 24% 41% TRW 25% 13% 25% World Mando Nissin Kogyo KDAC 6% 4% 4% Advics Others 9% 18% Continental Bosch 23% TRW 23% 13%
South America Asia/Pacific SABS Others Nissin Kogyo 6% TRW 9% Others Continental Bosch 2% 23% 20% 5% 23% Continental Mando Bosch 52% 13% 21%
KDAC 6% Advics TRW 16% 4% Source: Continental Estimates
Equity and Debt Markets Relations Fact Book FY 2009
60 / © Continental AG Chassis & Safety Market Position for Airbag Electronics 2009
Europe North America
Autoliv TRW Denso Delphi Others 19% 16% Others 6% 10% 2% 8% TRW 22% Bosch Continental Continental 24% 39% 19% World
Denso Keihin Autoliv Bosch TRW Others 12% 4% 24% 11% 16% 8%
Continental 26% Autoliv 16% South America Asia/Pacific Bosch TRW Keihin Others 18% Others Autoliv 17% 10% 6% 10% 9% Bosch Denso 6% 29% Continental Continental 61% 16%
TRW Bosch Autoliv 13% 13% Source: Continental Estimates 10%
Equity and Debt Markets Relations Fact Book FY 2009
61 / © Continental AG Chassis & Safety Growing Sales Volume for Electronic Brake Systems
(million units worldwide) Model Selection 18 Europe BMW 1 Series / 3 Series 16 Landrover Freelander Mercedes C Class / S Class Ford Focus / Fiesta 14 Opel Astra VW Golf Peugeot 207 12 Seat Altea ESC Volvo S80 / V70 10 NAFTA Dodge Caravan / Voyager 8 Ford Explorer / Escape Jeep Wrangler GM Cruze / Equinox 6 Nissan Frontier Toyota Tundra 4 VW Jetta ABS/TCS
2 Asia Daewoo Windstorm Honda Accord Mazda Axela 0 Suzuki Wagon R Mitsubishi Lancer 00 04 05 09 Subaru Legacy 1997 1998 1999 20 2001 2002 2003 20 20 2006 2007 2008 20 2010 2011 2012
Source: Continental Estimates
Equity and Debt Markets Relations Fact Book FY 2009
62 / © Continental AG Chassis & Safety Manufacturing Sites: Germany & Rest of Europe Germany Rest of Europe
Bebra Washer systems Adrspach, Czech Rep. Washer systems
Frankfurt Electronic brake systems (e.g. ESC, ABS) Boussens, France Speed sensors
Dortmund Speed sensors, buckle switch sensors Budapest, Hungary EBS control units, sensor clusters
Gifhorn Tandem master cylinders, calipers, brake hose Cairo Montenotte, Italy Drum brakes assemblies, brake valves, valve blocks, suspension modules & systems Ebbw Vale, UK Calipers, drum-in-hat brakes
Hanover Suspension systems components (bellows) Frenstat, Czech Rep. Speed sensors
Ingolstadt Airbag control units, camera, airbag sensors Jičín, Czech Republic Brake boosters, tandem master cylinders
Karben Sensor clusters, ABS control units, electric Mechelen, Belgium Electronic brake systems, wheel speed parking brake (EPB) control units, chassis electronics sensors
Korbach Brake hoses Palmela, Portugal Calipers
Nuremberg EPB control units, radar, chassis electronics Sibiu, Romania Electric parking brake control unit, airbag control units
Regensburg Airbag control units, pressure satellites, Toulouse, France ABS control units, chassis electronics acceleration satellites, crash impact sound sensing, occupant classification systems, Timişoara, Romania Airbag control units, EPB control units camera, radar, steering ECU, chassis electronics Veszprém, Hungary Speed sensors, sensor clusters, chassis Rheinböllen Calipers sensors, torque sensors, steering angle sensors
Zvolen, Slovakia Calipers
Equity and Debt Markets Relations Fact Book FY 2009
63 / © Continental AG Chassis & Safety Manufacturing Sites: America & Asia America Asia
Ciudad Juarez, Mexico Speed sensors, washer systems Changchun, China Speed sensors, airbag control units, ABS control units Cuautla, Mexico EBS control units, airbag control units Changshu, China Calipers, brake valves, tandem master, wheel cylinders, brake boosters, drum brakes Guadalajara, Mexico Airbag control units, occupant classification
systems, ABS control units Calamba, Philippines Chassis sensors, sensor clusters, airbag sensors, chassis electronics, speed sensor elements Culpeper, VA, USA Tandem master cylinders, valve blocks Cheongwon, S. Korea Speed sensors, buckle switch sensors, Henderson, NC, USA Calipers, drum-in-hat-brakes, brake corners ABS control units
Gurgaon, India Calipers, brake boosters, reservoirs, drum brakes Las Colinas, Mexico Brake boosters, tandem master cylinders Hamakita, Japan Electronic brake systems Morganton, NC, USA Electronic brake systems, suspension modules & systems Hiroshima, Japan Calipers, brake valves, tandem master and wheel cylinders, brake boosters Salto, Brasil Speed sensors
Ichon, S. Korea Airbag control units , ABS control units Seguin, TX, USA Chassis electronics Lian Yun Gang, China Speed sensors Silao, Mexico Speed sensors Manesar, India Speed sensors Varzea Paulista, Brazil Brake boosters, calipers, brake valves, Manila, Philippines EBS control units drum-in-hat brakes, drum brakes, tandem master cylinders, cylinders, brake hose assemblies Penang, Malaysia EPB control units
Shanghai, China EBS control units
Equity and Debt Markets Relations Fact Book FY 2009
64 / © Continental AG Chassis & Safety Selected Cooperations & Joint Ventures Europe Asia Fit Automoción S.A. Calipers Shanghai Automotive Electronic brake systems, brake Bergara, Spain Brake Systems Co. Ltd. boosters, tandem master cylinders, (SABS), Shanghai, China calipers, brake hose assemblies
Alphapeak Ltd. Engineering services & prototypes Continental Teves Taiwan Co. Ltd. Tandem master cylinders, wheel Lichfield, UK cylinders, clutch cylinders, calipers, electronic brake systems
Jilin Automotive Brake Brake boosters, master cylinders Factory (JABF)* Changchun, China
Aisin Seiki Co, Ltd.* Block steel valve, ABS, TCS Karia City, Japan
Omron Co.* Acceleration sensors (LIDAR)
Kamaki City, Japan
San Yes Automotive Tandem master cylinders, wheel
Industry Co. Ltd.* cylinders, clutch cylinders Tainan, Taiwan
Mando India (MBSI)* Calipers, brake boosters, tandem South Africa Chennai, India master cylinders, brake reservoirs
Alfred Teves Brake Calipers, brake boosters, cylinders, drum brakes Toklan Toos Ind. Mfg. Co.* ABS, brake boosters, tandem master Systems (PTY) Ltd.* Mashad, Iran cylinders, brake reservoirs Boksburg, South Africa
Hema Indüstri A.S.* Brake boosters, tandem master
Istanbul, Turkey cylinders, wheel cylinders, calipers, drum brakes, brake valves
* Licensee
Equity and Debt Markets Relations Fact Book FY 2009
65 / © Continental AG V.2. Powertrain
Equity and Debt Markets Relations Fact Book FY 2009
66 / © Continental AG Powertrain Business Structure
Powertrain
Hybrid & Electric Engine Systems Transmissions Sensors & Actuators Fuel Supply Vehicle
Engine management systems Control Units for System and components for Actuators Components and modules for fuel and fuel components for ● Automatic transmission HEV applications ● Electronic throttle control supply management ● Diesel piezo ● Double clutch transmission ● Power electronic ● Air control valve ● Fuel pumps common rail ● Automated manual ● Electric motor ● General purpose actuator ● Level sensors injection systems transmission ● Energy management and ● Electric Pumps ● In-tank venting systems ● Gasoline piezo ● Continuously variable Battery systems ● Digital linear actuator ● Electronics for demand direct injection transmission ● Emission management regulation ● Gasoline solenoid Power net systems ● Exhaust actuators ● Fuel supply modules direct injection Control Units for four- and all ● Gasoline port fuel wheel drive applications injection ● Transfer cases Sensor for powertrain applications ● Liquefied petroleum gas (LPG) ● Differentials ● NOx, MAF, transmission and compressed natural gas ● Limited slip coupling sensor modules, position (CNG) ● Pressure, temperature, knock, cylinder pressure Engine management systems and ● Flex fuel, oil level, oil quality aftertreatment controller for commercial vehicles applications Door handle sensors
Turbocharger
Equity and Debt Markets Relations Fact Book FY 2009
67 / © Continental AG Powertrain Key Figures
(€ million) 2007* 2008 2009
Sales 1,177.0 4,040.0 3,399.2 EBITDA 5.9 81.6 -13.3 in % of sales 0.5 2.0 -0.4 EBIT -73.5 -1,046.2 -943.2 in % of sales -6.2 -25.9 -27.7 EBIT adjusted 1) -188.9 -218.0 in % of sales 1) -5.0 -6.5
Operating Assets (avg.) 1,592.9 4,610.8 3,401.8 ROCE (avg.) in % -4.6 -22.7 -27.7 R&D expense 144.9 420.1 328.8 in % of sales 12.3 10.4 9.7 Capex 2) 129.6 494.4 247.2 in % of sales 11.0 12.2 7.3 Depreciation & amortization 3) 79.4 1,127.8 929.9 in % of sales 6.7 27.9 27.4 thereof impairment4) 1.4 653.3 488.0
* Since December 2007 incl. Siemens VDO 1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments 4) 2008: including goodwill impairment of € 609.6 mn 2009: including goodwill impairment of € 447.4 mn
Equity and Debt Markets Relations Fact Book FY 2009
68 / © Continental AG Powertrain Financials (€ million) 4,040.0 Sales
3,399.2 -15.9%
EBITDA 81.6
-116.3% 1,177.0
5.9 -13.3 EBITDA margin 0.5% 2.0%
-0.4% FY 07 FY 08 FY 09
adj. EBIT -188.9* -218.0 ** adj. EBIT margin -5.0% -6.5%
* EBIT w/o amortization of intangibles PPA, consolidation (€ -2.2 mn) and special effects (€ -659.2 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ -1.8 mn) and special effects (€ -548.1 mn)
Equity and Debt Markets Relations Fact Book FY 2009
69 / © Continental AG Powertrain Sales Structure by Region
Sales in 2009: € 3.4 bn
Others Asia 1% Germany 21% 28%
NAFTA 20%
Rest of Europe 30%
Equity and Debt Markets Relations Fact Book FY 2009
70 / © Continental AG Powertrain Market Position for Diesel Injection Systems 2009*
World Others Delphi Continental 4% 11% 17% Denso 12% Bosch 56%
Europe Asia** Delphi Delphi Denso Others Others 16% 11% 7% 2% 5% Denso Continental Bosch 35% 2% Bosch 60% Continental 17% 45%
Source: Continental Estimates * For passenger cars & light trucks ** Japan, South Korea, China, India, Thailand
Equity and Debt Markets Relations Fact Book FY 2009
71 / © Continental AG Powertrain Market Position for Gasoline Injection Systems 2009*
Europe North America Hitachi Others Hitachi Delphi Others 8% 7% 6% Magneti Marelli 22% 6% 5% Bosch 44% Denso Continental Continental 4% 22% 34% Bosch World 13% Keihin Denso Delphi Magneti Marelli Keihin Others 12% 17% 10% 3% Hitachi 6% 9% 7% Continental Denso 21% 16% Bosch 28% South America Asia** Delphi Others Delphi Others Keihin Hitachi 8% 12% 25% 17% 7% 8% Continental 12% Magneti Marelli Denso Bosch Bosch Continental 32% 28% 25% 20% 6%
Source: Continental Estimates * For passenger cars & light trucks ** Japan, South Korea, China, India, Thailand
Equity and Debt Markets Relations Fact Book FY 2009
72 / © Continental AG Powertrain Market Position for Transmission Control Units 2009*
Europe North America Denso Visteon Hitachi Others Others 3% 7% 2% 8% 14% Bosch 22% Delphi 21% Continental Continental Bosch 24% 70% 29%
World Asia**
Keihin Denso Delphi Others Bosch Aisin 13% Others 5% 6% 12% 10% 15% 6%
Hitachi Continental 22% Continental Bosch Hitachi 33% 15% 10% 19%
Denso Aisin 9% 25% Source: Continental Estimates * For passenger cars & light trucks ** Japan, South Korea, China, India
Equity and Debt Markets Relations Fact Book FY 2009
73 / © Continental AG Powertrain Manufacturing Sites: Germany & Rest of Europe Germany Rest of Europe
Bebra Actuators, automatic transmission, Adrspach, Czech Rep. End-shields, plastic parts fuel pumps Boussens, France Sensors Dortmund Fuel supply modules, fuel supply systems Brandys, Czech Rep. Fuel supply modules, fuel supply systems, level sensors Gifhorn Electric machines Budapest, Hungary Sensors, power electronics Karben Electronic control units, actuators, (2nd gen, stop start systems) power modules, resistor cards Foix, France Electronic control units, Limbach-Oberfrohna Piezo diesel injection automatic transmission, automated manual transmission Nuremberg Electronic control units, battery systems, power electronics (1st gen), Frenstat, Czech Rep. Electronic control units, sensors, actuators, automatic transmission, four & all wheel drive transmission, double clutch transmission, electronics for demand regulation continuously variable transmission Kaluga, Russia Electronic control units, gasoline port fuel Regensburg Electronic control units, sensors, actuators, injection automatic transmission, double clutch transmission, continuously variable Pisa, Italy Gasoline injection transmission, four & all wheel drive transmission Sibiu, Rumania Electronic control units, double clutch transmission Roding Gasoline & diesel pumps Toulouse, France Engine management system modules & components for marine, recreation and utility vehicle markets
Trutnov, Czech Rep. Gasoline & diesel pumps, actuators
Equity and Debt Markets Relations Fact Book FY 2009
74 / © Continental AG Powertrain Manufacturing Sites: America America
Cuautla, Mexico Electronic control units, Seguin, TX, USA Electronic control units, automatic transmission, four & all battery management controllers, wheel drive transmission automatic transmission, four & all wheel drive transmission Delavan, WI, USA Engine management system modules & components for marine, recreation, and utility vehicle markets
Guadalajara, Mexico Electronic control units, actuators, double clutch transmission
Guarulhos,/Salto, Brazil Electronic control units, sensor, actuators, fuel pumps
Huntsville, AL, USA Electronic control units, four & all wheel drive transmission
Juarez, Mexico Sensors, actuators, fuel supply modules, fuel supply systems, level sensors
Newport News, VA, USA Gasoline and diesel injection, engine management system modules & components for marine, recreation, and utility vehicle markets
Equity and Debt Markets Relations Fact Book FY 2009
75 / © Continental AG Powertrain Manufacturing Sites: Asia Asia
Amata City, Thailand Diesel pumps, diesel injection Shanghai, China Ingnition systems, double clutch transmission Bangalore, India Electronic control units Tianjin, China Electronic control units, Pune, India Fuel supply systems electric machines, battery management controllers, Manesar, India Sensors automatic transmission
Calamba, Philippines Sensors, automatic transmission Wuhu, China Fuel supply systems, level sensors, fuel pumps, actuators Changchun, China Electronic control units, gasoline port fuel injection, sensors, automatic transmission, Engine management system modules & components for marine, recreation, and utility vehicle markets
Cheongwon, S. Korea Sensors
Icheon, S. Korea Electronic control units, actuators, automatic transmission, continuously variable transmission
Melbourne, Australia Actuators
Penang, Malaysia Electronic control units, sensors, actuators, fuel supply systems, level sensors
Equity and Debt Markets Relations Fact Book FY 2009
76 / © Continental AG Powertrain Selected Cooperations & Joint Ventures
Europe Asia Emitec GmbH METALIT® metal substrate for three-way KEMSCO (Korea EMS Co. Ltd.) Injectors (only merchandise sales) Lohmar, Germany catalysts, catalysts with turbulent structures, Icheon, S. Korea Kemsco to be closed soon lambda sensor catalysts, diesel oxidation catalysts, PM-METALIT® (catalyst and particulate CASCO (Continental Automotive Electronic fuel injection systems TM filter), PT -METALIT ® (pre-turbo catalysts), Systems Corporation) actuators selective catalytic reduction (SCR) catalysts with Icheon, S. Korea structured foils, electrical heated catalysts EMICAT ®, CompactCat ®, TwinCat ®, hybrid catalysts
IAV GmbH Vehicle development, vehicle electronics, power- Berlin, Germany train development, powertrain mechatronics
Cooperation: ZF Friedrichshafen, Development and commercialization of hybrid Germany technology for passenger cars as well for trucks and busses
DUAP AG Diesel fuel injection systems for marine, traction, Herzogenbuchsee, stationary and automotive applications Switzerland
Equity and Debt Markets Relations Fact Book FY 2009
77 / © Continental AG V.3. Interior
Equity and Debt Markets Relations Fact Book FY 2009
78 / © Continental AG Interior Business Structure
Interior
Commercial Vehicles Instrumentation Infotainment Body & Security & & & Aftermarket Driver HMI Connectivity
● Body control units ● Tachographs & services ● Instrument clusters ● Radios ● LED light control ● Vehicle control units for drive ● Secondary displays ● Connected radio & navigation ● Power closing & onboard electronics ● Head-up displays ● Multimedia systems ● Seat comfort systems ● Instrumentation & HMI ● Climate controls ● Embedded telematics ● Battery & energy ● Onboard toll units & ● Haptic controls ● Device connectivity management telematics ● Faceplates ● Software & special solutions ● Access control systems ● Wear parts, spare parts & ● Central input devices ● Tire information systems services for the independent ● Roof controls ● Antenna modules aftermarket ● Integrated center stacks ● Original equipment ● Cockpit modules services
Equity and Debt Markets Relations Fact Book FY 2009
79 / © Continental AG Interior Key Figures
(€ million) 2007* 2008 2009
Sales 1,531.6 5,856.7 4,362.7 EBITDA 101.3 557.3 20.4 in % of sales 6.6 9.5 0.5 EBIT 10.8 -462.6 -516.0 in % of sales 0.7 -7.9 -11.8 EBIT adjusted 1) 501.6 56.4 in % of sales 1) 8.8 1.3
Operating Assets (avg.) 1,895.1 5,629.1 4,580.1 ROCE (avg.) in % 0.6 -8.2 -11.3 R&D expense 131.5 432.5 434.7 in % of sales 8.6 7.4 10.0 Capex 2) 65.5 265.2 131.3 in % of sales 4.3 4.5 3.0 Depreciation & amortization 3) 90.5 1,019.9 536.4 in % of sales 5.9 17.4 12.3 thereof impairment4) 0.3 523.6 90.6
* Since December 2007 incl. Siemens VDO 1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments 4) 2008: including goodwill impairment of € 475.2 mn 2009: including goodwill impairment of € 61.4 mn
Equity and Debt Markets Relations Fact Book FY 2009
80 / © Continental AG Interior Financials
5,856.7 (€ million) Sales
-25.5% 4,362.7
557.3 EBITDA
-96.3% 1,531.6 20.4 101.3 9.5% EBITDA margin 0.5% 6.6%
FY 07 FY 08 FY 09 adj. EBIT 501.6 * 56.4 ** adj. EBIT margin 8.8% 1.3%
* EBIT w/o amortization of intangibles PPA, consolidation (€ -29.2 mn) and special effects (€ -683.8 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ -6.3 mn) and special effects (€ -353.8 mn)
Equity and Debt Markets Relations Fact Book FY 2009
81 / © Continental AG Interior Sales Structure by Region
Sales in 2009: € 4.4 bn
Others Asia 7% Germany 14% 31%
NAFTA 20%
Rest of Europe 28%
Equity and Debt Markets Relations Fact Book FY 2009
82 / © Continental AG Interior Market Position for Body & Security 2009
Europe North America
Kostal 5% Others Others Valeo 31% 41% 6% Continental Continental 24% Visteon 20% Bosch 4% 7% Bosch Lear 5% Lear Denso 7% Delphi Schrader Delphi Hella 6% 9% 9% 11% 7% 8%
World Asia
Others Others Continental 43% 41% Continental 10% 18% Denso Delphi 19% Valeo 5% 4% HACO Bosch 5% 5% Hella Denso Sumitomo Lear Delphi Calsonic Kansei Omron 6% 10% 6% 6% 8% 7% 7%
Source: Continental estimates
Equity and Debt Markets Relations Fact Book FY 2009
83 / © Continental AG Interior Market Position for Instrumentation and Displays 2009
Europe North America Yazaki Yazaki Calsonic Others Nippon Seiki 3% Visteon 8% 5% 14% Visteon 5% 10% 5% Others Bosch 19% Continental 5% Nippon Seiki Denso 19% JCI Continental 36% 13% 17% Magneti Marelli 15% 12%
Delphi 14%
World Visteon Asia Calsonic Kansei Magneti Marelli 5% 7% Others 6% Yazaki Others 24% 26% Yazaki 10% Continental Continental 7% 17% Denso 26% Denso Nippon Seiki JCI 15% 31% 10% 8%
Nippon Seiki 8%
Source: Continental estimates
Equity and Debt Markets Relations Fact Book FY 2009
84 / © Continental AG Interior Market Position for Radio and Multimedia Systems 2009 Europe North America Harman Denso Harman 25% Panasonic 9% 8% Magneti Marelli Others 11% Clarion 4% 16% 8% Visteon Continental Delphi Continental 4% 7% 17% 14% Alpine Others Panasonic 14% 22% Pioneer 4% 7% Melco 7% Alpine Blaupunkt 8% 15%
World Asia Harman HACO Panasonic Denso Clarion Pioneer 10% Alpine 7% 11% 7% Denso 9% 7% Xanavi 7% 10% 5% Continental Continental 7% 1% Others Others 40% Aisin 34% Clarion 11% 6%
Aisin Blaupunkt 6% Panasonic 6% 16% Source: Continental estimates
Equity and Debt Markets Relations Fact Book FY 2009
85 / © Continental AG Interior Market Position for Embedded Telematics and Device Connectivity Units 2009
Europe North America Delphi Magneti Marelli Paragon Peiker Denso Others 4% 8% 7% 6% 3% Peiker Harman Becker 7% Flextronics 2% Others 16% LG 14% 3% Continental 30% Continental Novero 36% 44% 20%
World Asia Harman Peiker Pioneer 3% Flextronics 6% 11% Others Clarion 7% Denso Aisin 22% 17% 12% 11% Continental Novero LG Others 38% 8% 16% 29%
Continental Alpine 10% 10%
Source: Continental estimates
Equity and Debt Markets Relations Fact Book FY 2009
86 / © Continental AG Interior Market Position for Commercial Vehicle* 2009
Thales North America Actia Europe Ametek 3% 8% 5% Wabco Others Visteon Others 12% 21% 11% 26% Continental Continental Qualcomm 26% 36% 15%
World Stoneridge 20% Others Stoneridge 17% Yazaki 39% 5% Continental 25% Delco 5% Pricol Actia 6% Wabco Stoneridge South America 4% Asia 5% 11% Bosch Magneti Marelli Pricol Delco Visteon 12% 4% Others Actia 15% 14% Yazaki 8% Stoneridge 9% 2% 12% 7% Continental Continental 9% Others 60% 48%
Source: Continental estimates * Commercial vehicles business as described in BU structure excluding aftermarket business
Equity and Debt Markets Relations Fact Book FY 2009
87 / © Continental AG Interior Manufacturing Sites: Germany & Rest of Europe Germany Rest of Europe
Babenhausen Displays, instrument clusters Birmingham, UK HVAC control units, after market products
Dortmund Aftermarket products (sensorics) Brandys, Czech Rep. Radio, multimedia, navigation, HVAC control units, instrument clusters Ingolstadt Keyless entry systems, comfort control units, heading control Budapest, Hungary Door control devices Karben Cluster PCB, HVAC control units, gateways Frenstat, Czech Rep. Body/ door control units, keyless entry systems Nuremberg Seat control devices, transmission control units Hambach, France Cockpit modules Regensburg Displays, multimedia products, body/ door control units, passive start & entry systems, remote keyless entry, Rambouillet, France Radio, navigation immobilizer Rubi, Spain Instrument clusters Villingen Commercial vehicles control units, toll systems, commercial vehicles instrument clusters, tachographs Ruethi, Switzerland After market products, gauges, marina & other instruments
Sibiu, Romania Door control devices, body control devices
Timisoara, Romania Instrument clusters, displays
Toulouse, France Tire guard, body control unit, keyless entry system, connectivity box
Chistopol, Russia Instrument clusters for passenger cars and commercial vehicles
Equity and Debt Markets Relations Fact Book FY 2009
88 / © Continental AG Interior Manufacturing Sites: America & Asia
America Asia
Gravatai, Brazil Cockpit modules Bangalore, India Instruments, instrument clusters
Campbell Field, Instrumentation & displays Guadalajara, Mexico Radio, body controller modules, integrated power module, gateway, tire guard, commercial vehicles control units and Australia instrument clusters Changchun, China Keyless entry system, immobilizer, window lifter control Guarulhos, Brazil Instrument clusters, tachographs, body controller, HVAC units control units Cheongwon, S. Korea Instrument clusters, HVAC control units, parking aid, Huntsville, AL, USA Radio, navigation, multimedia, body controller module, PWM (fan) control units integrated power module, gateways, instrument clusters Icheon, S. Korea Body controller, keyless entry systems
Manaus, Brazil Radio Manesar, India Instrumentation & displays Nogales, Mexico Interior electronics and telematic products Manila, Philippines Door control devices, anti theft protection control devices, central control units, body control devices Resende, Brazil Bus and cabin assembly for commercial vehicles
Melbourne, Australia Instrumentation & displays Sao Bernando de Instrumentation & displays Campo Penang, Malaysia Instrument clusters, body controller, gateways,
Seguin, TX, USA Telematics, marine and agricultural products immobilizer for passenger cars and commercial vehicles
Pune, India Instrumentation & displays
Shanghai, China Door control devices
Tianjin, China Telematics, embedded hands-free bluetooth systems
Wuhu, China Instrument clusters
Malaysia Prai, Infotainment, HVAC, automotive spare parts Penang
Equity and Debt Markets Relations Fact Book FY 2009
89 / © Continental AG Interior Selected Cooperations & Joint Ventures Europe Asia SAS Autosystemtechnik Cockpit module assembly and logistics Car Electronic Architecture Electronic system architecture Network GmbH & Co. KG System Company Ltd. (body controller, SW development) Karlsruhe, Germany Anyang, S. Korea S-Y Systems Electric and electronic cabling & distribution Technologies Europe GmbH, systems (EEDS) Automotive Infotronics Private Ltd. Engineering & development of Chennai, Regensburg, Germany India electric and electronic components and software
vogtronics GmbH Inductive products (antennas, immobilizers) PT Indo VDO Instruments Co. Ltd. Instrument clusters for the Obernzell, Germany Bekase, Indonesia domestic market
TecCom GmbH B2B platform for automotive aftermarket Ismaning, Germany
TecDoc Informations B2B platform for automotive aftermarket System GmbH regarding product specs data Köln, Germany Kienzle Rheinapp. Automotive aftermarket sales and service Rhein. Apparate GmbH (electronics, navigation systems, Mülheim, Germany telematics) Kienzle Argo GmbH Automotive aftermarket sales and service Berlin, Germany (tachographs, telematics)
OOO Continental Instrument cluster (passenger cars) Automotive RUS tachographs, speedometer Moscow, Russia driver workplaces
Equity and Debt Markets Relations Fact Book FY 2009
90 / © Continental AG VI. Rubber Group
Equity and Debt Markets Relations Fact Book FY 2009
91 / © Continental AG Rubber Group Key Figures
(€ million) 2007 2008 2009
Sales 9,337.0 9,353.9 8,068.3 EBITDA 1,638.4 1,415.9 1,114.5 in % of sales 17.5 15.1 13.8 EBIT 1,225.6 984.9 655.7 in % of sales 13.1 10.5 8.1 EBIT adjusted 1) 997.7 1,035.5 in % of sales 1) 10.7 12.9
Operating Assets (avg.) 4,149.1 4,369.5 3,989.8 ROCE (avg.) in % 29.5 22.5 16.4 R&D expense 210.9 222.0 212.0 in % of sales 2.3 2.4 2.6 Capex 2) 404.8 499.1 321.7 in % of sales 4.3 5.3 4.0 Depreciation & amortization 3) 412.8 431.0 458.8 in % of sales 4.4 4.6 5.7 thereof impairment 20.3 13.9 44.0
1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2009
92 / © Continental AG Rubber Group Financials
(€ million)
Rubber Group: Sales by division Adjusted EBIT* and adjusted EBIT* margin by division
1,065.6 8,068.3 4,696.4 -23.4% -99.8 20.5 0.0 772.7 1.9% 1,035.5 -7.2% -12.5% 16.6% 12.9%
2,406.1
Organic -17.8% 242.3 sales 10.1% growth
CT PLT CVT cons. total CT PLT CVT cons. total
* W/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations Fact Book FY 2009
93 / © Continental AG Rubber Group Sales Structure by Region
Sales in 2009: € 8.1 bn
Others Asia 5% Germany 8% 26%
NAFTA 17%
Rest of Europe 44%
Equity and Debt Markets Relations Fact Book FY 2009
94 / © Continental AG VI.1. Passenger and Light Truck Tires
Equity and Debt Markets Relations Fact Book FY 2009
95 / © Continental AG Passenger and Light Truck Tires Business Structure
Passenger and Light Truck Tires
Replacement Replacement Replacement Original Equipment Two-Wheel Tires Europe The Americas Asia-Pacific
● Tires for compact, ● High-performance and ● High-performance and ● High-performance and ● Bicycle tires medium-size and full- ultra-high-performance tires ultra-high-performance tires ultra-high-performance tires ● High-performance size cars ● Tires for compact, ● Tires for compact, ● Tires for compact, racing tires ● Tires for 4x4 and SUVs medium-size and medium-size and medium-size and ● Motorcycle and ● Tires for vans, light full-size cars full-size cars full-size cars scooter tires trucks and RVs ● Tires for 4x4 and ● Tires for 4x4 and ● Tires for 4x4 and ● High-performance ● Extended mobility SUVs SUVs SUVs motorbike tires Systems: ● Tires for vans, light ● Tires for vans, light ● Tires for vans, light -SSR trucks and RVs trucks and RVs trucks and RVs -CSR - ContiComfortKit - ContiMobiltyKit - ContiSeal Global brands: Global brands: Global brands: Global brand: ● NVH engineering services - Continental - Continental - Continental - Continental - Barum - Barum - Barum
Regional brands: Regional brands: Regional brands: -Uniroyal * - General Tire - Dunlop** Global brand: - Semperit -Euzkadi -Sime Tyres - Continental - General Tire - Semperit -Gislaved -Viking Regional brand: -Viking -Gislaved - General Tire - Mabor - Matador * Except NAFTA region, Colombia and Peru ** Trademark rights for Malaysia, Singapore and Brunei
Equity and Debt Markets Relations Fact Book FY 2009
96 / © Continental AG Passenger and Light Truck Tires Key Figures
(€ million) 2007 2008 2009
Sales 4,975.6 5,100.3 4,696.4 EBITDA 969.6 873.5 793.1 in % of sales 19.5 17.1 16.9 EBIT 738.7 626.4 536.4 in % of sales 14.8 12.3 11.4 EBIT adjusted 1) 644.1 772.7 in % of sales 1) 12.6 16.6
Operating Assets (avg.) 2,324.6 2,488.1 2,348.4 ROCE (avg.) in % 31.8 25.2 22.8 R&D expense 110.5 119.5 113.5 in % of sales 2.2 2.3 2.4 Capex 2) 222.0 292.7 198.3 in % of sales 4.5 5.7 4.2 Depreciation & amortization 3) 230.9 247.1 256.7 in % of sales 4.6 4.8 5.5 thereof impairment 19.7 13.1 24.6
1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2009
97 / © Continental AG Passenger and Light Truck Tires Financials 5,100.3 (€ million) 4,975.6 4,696.4 Sales -7.9%
969.6 EBITDA 873.5
-9.2% 793.1
EBITDA margin 19.5% 17.1% 16.9%
FY 07 FY 08 FY 09 adj. EBIT 644.1 * 772.7 ** adj. EBIT margin 12.6% 16.6%
* EBIT w/o amortization of intangibles PPA, consolidation (€ -3.0 mn) and special effects (€ -11.7 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ 1.9 mn) and special effects (€ -235.0 mn)
Equity and Debt Markets Relations Fact Book FY 2009
98 / © Continental AG Passenger and Light Truck Tires Sales Structure by Region
Sales in 2009: € 4.7 bn
Asia Others Germany 5% 4% 21% NAFTA 18%
Rest of Europe 52%
Equity and Debt Markets Relations Fact Book FY 2009
99 / © Continental AG Passenger and Light Truck Tires Market Share for Passenger and Light Truck Tires* 2009
Europe Michelin 20% Continental 21%
Others 22%
Pirelli Goodyear/Sumitomo Bridgestone/Firestone 8% 18% 11% North America
Goodyear/Sumitomo Michelin 21% 19% Continental 6%
Bridgestone/Firestone 18% Others Cooper 26% 10% Source: Continental estimates * OE & Replacement
Equity and Debt Markets Relations Fact Book FY 2009
100 / © Continental AG Passenger and Light Truck Tires Continental Worldwide Passenger and Light Truck Tire Production 2009
(million units)
6.4
Mount Vernon
3.7
0.5 San Luis Potosí 2.9* Cuenca ** 4.2 Alor Star / Petaling Jaya Camaçari
2.4
Port Elizabeth
* Until 2004 consolidated in CVT Division ** Since July 2009
Equity and Debt Markets Relations Fact Book FY 2009
101 / © Continental AG Passenger and Light Truck Tires Continental European Passenger and Light Truck Tire Production 2009
(million units)
8.0 18.5 7.1
1.0 Korbach 8.1 Aachen 5.4 Clairoix Otrokovice Sarreguemines Puchov 13.1 13.4
Timişoara Lousado
Equity and Debt Markets Relations Fact Book FY 2009
102 / © Continental AG Passenger and Light Truck Tires Cost of Labor at Continental Manufacturing Sites* 120%
100% D F
80% USA P 60%
40% MEX CZ SK ZA 20% EC BR RO MY
0% * Based on average FX rates 2009
Equity and Debt Markets Relations Fact Book FY 2009
103 / © Continental AG Passenger and Light Truck Tires Unit Sales 2005 – 2009
(in million units)
120
100 82.7 84.2 83.8 80.2 74.8 80 Europe (incl. ROW)*
60 The Americas (incl. van tires)** 40 25.9 Asia 24.0 24.3 23.0 20.4 20 4.0 3.9 0 2005 2006 2007 2008 2009
* From 2005 - 2007 Asia included in Europe ** North America; since 2007 incl. Latin America
Equity and Debt Markets Relations Fact Book FY 2009
104 / © Continental AG Passenger and Light Truck Tires Product Mix Improvement
Winter Tires* ww High Performance Summer Tires Europe* (in million units) (in million units)
6.2 -11.4% 1.2% 5.6% 8.2% - 4.7 4.1% 3.5%
36.0 33.9 31.0 32.1 31.9 19.1 19.0 19.2 17.7 18.2
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
* OE & Replacement (excl. All-Season Tires)
Equity and Debt Markets Relations Fact Book FY 2009
105 / © Continental AG Passenger and Light Truck Tires Selected Cooperations & Joint Ventures Europe Asia Matador Joint Venture with Sibur General Tyre & Rubber Minority shareholding and technology transfer Omskshina a.s.z.t, Production, sales and marketing of passenger and Company of Pakistan Ltd., Omsk, Russia light truck tires Karachi, Pakistan
J.K. Industries Ltd., Technology transfer New Delhi, India
Barez Industrial Group Technology transfer Teheran, Iran
The Yokohama Rubber Distribution of Continental passenger car tires Co., Ltd., Tokyo, Japan in Japanese replacement market
Yokohama Continental Acquisition of OEM tire business for Tire Co. Ltd., Japanese car manufacturers and their Tokyo, Japan transplants and Korean car manufacturers America on behalf of Yokohama and Continental
HighwayTwo, IL, USA Joint Venture with Selle Royal S.p.a., Italy; distribution of bicycle products
Andujar S.A., Cuenca, Minority shareholding (various dealer networks, Ecuador rubber plantation and rubber plant)
Equity and Debt Markets Relations Fact Book FY 2009
106 / © Continental AG VI.2. Commercial Vehicle Tires
Equity and Debt Markets Relations Fact Book FY 2009
107 / © Continental AG Commercial Vehicle Tires Business Structure
Commercial Vehicle Tires
Truck Tires Truck Tires Truck Tires Industrial Tires OTR Tires Europe The Americas Asia-Pacific
● Long-distance ● Long-distance ● Long distance ● Transportation ● Earthmoving ● Regional traffic ● Regional traffic ● Regional traffic ● Stack / lift ● Construction ● Winter ● Winter ● Urban traffic ● Multi purpose ● Mining ● Urban traffic ● Urban traffic ● Construction ● Forestry ● Construction ● Construction ● Off-the-road ● Container handling ● Off-the-road ● Off-the-road ● Agricultural
Global brands: Global brands: Global brand: Global brand: Global brand: - Continental - Continental - Continental - Continental -Simex - ContiTread - ContiTread - ContiRE
Regional brands: Regional brands: Regional brands: Regional brands: Regional brands: -Uniroyal - General Tire -SIME Tyres -Simex -Simex - Semperit -Ameri*Steel - TERCO - Barum - General Tire - Barum -Euzkad i - Matador - Barum
Equity and Debt Markets Relations Fact Book FY 2009
108 / © Continental AG Commercial Vehicle Tires Key Figures
(€ million) 2007 2008 2009
Sales 1,452.4 1,404.2 1,065.6 EBITDA 202.4 112.4 47.5 in % of sales 13.9 8.0 4.5 EBIT 124.1 29.5 -50.1 in % of sales 8.5 2.1 -4.7 EBIT adjusted 1) 27.3 20.5 in % of sales 1) 2.0 1.9
Operating Assets (avg.) 697.8 776.2 634.7 ROCE (avg.) in % 17.8 3.8 -7.9 R&D expense 43.6 43.4 40.5 in % of sales 3.0 3.1 3.8 Capex 2) 83.0 95.6 40.5 in % of sales 5.7 6.8 3.8 Depreciation & amortization 3) 78.3 82.9 97.6 in % of sales 5.4 5.9 9.2 thereof impairment 0.3 0.4 15.7
1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2009
109 / © Continental AG Commercial Vehicle Tires Financials
1,452.4 (€ million) 1,404.2 Sales
-24.1% 1,065.6 202.4 EBITDA
112.4 EBITDA margin 13.9% -57.7% 47.5 8.0% 4.5%
FY 07 FY 08 FY 09
adj. EBIT 27.3* 20.5 ** adj. EBIT margin 2.0% 1.9%
* EBIT w/o amortization of intangibles PPA, consolidation (€ 3.9 mn) and special effects (€ -0.9 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ 1.5 mn) and special effects (€ -69.5 mn)
Equity and Debt Markets Relations Fact Book FY 2009
110 / © Continental AG Commercial Vehicle Tires Sales Structure by Region
Sales in 2009: € 1.1 bn
Others Germany Asia 10% 15% 7%
NAFTA 31%
Rest of Europe 37%
Equity and Debt Markets Relations Fact Book FY 2009
111 / © Continental AG Commercial Vehicle Tires Market Share for Truck Tires* 2009
Europe Michelin 34% Continental 17%
Others 2% Hankook Goodyear/Sumitomo Pirelli 3% 20% North America 5% Bridgestone/Firestone 19% Goodyear 28% Continental Michelin 9% 21%
Others Bridgestone/Firestone 13% Yokohama 25% 4%
Source: Continental estimates * OE & Replacement
Equity and Debt Markets Relations Fact Book FY 2009
112 / © Continental AG Commercial Vehicle Tires Continental Product Segments 2009 Europe
Construction Winter 10% 3% Regional Traffic 70% Urban Traffic 3%
Off-Road 2%
Long Distance 12% Americas
Long Distance Off-Road 42% 3%
Urban Traffic 12%
Regional Traffic Construction 36% 6%
Winter 1%
Equity and Debt Markets Relations Fact Book FY 2009
113 / © Continental AG Commercial Vehicle Tires Continental Worldwide Radial Truck Tire Production 2009
(million units)
2.3 1.4 0.3
0.4 Hanover Otrokovice Puchov Mount Vernon* 0.01 0.2 Cuenca** 0.2 Petaling Jaya
Camaçari 0.1
Port Elizabeth
* Incl. shipments to JV partners ** Since July 2009
Equity and Debt Markets Relations Fact Book FY 2009
114 / © Continental AG Commercial Vehicle Tires Cost of Labor at Continental Manufacturing Sites*
120%
100% D
80%
USA 60%
40% CZ SK ZA 20% EC BR MY 0%
* Based on average FX rates 2009
Equity and Debt Markets Relations Fact Book FY 2009
115 / © Continental AG Commercial Vehicle Tires Unit Sales 2005 – 2009
(in million units) 5.0 4.3 4.5 4.0 4.0 3.7 3.7
3.5 3.0 2.9 2.9 2.8 3.0 2.6 Europe (incl. ROW)* 2.5 The Americas** 2.3 Asia 2.0 1.5 1.0 0.2 0.2 0.5 0.0 2005 2006 2007 2008 2009
* From 2005 - 2007 Asia included in Europe ** North America; since 2007 incl. Latin America
Equity and Debt Markets Relations Fact Book FY 2009
116 / © Continental AG Commercial Vehicle Tires Selected Cooperations & Joint Ventures Europe Asia Mitas a.s., Prague, Off-take production of General Tyre & Rubber Minority shareholding and technology Czech Republic industrial tires Company of Pakistan Ltd., transfer Karachi, Pakistan Nizhnekamsk All Steel Technology transfer (CVT) Tire Plant (NASTP), J.K. Industries Ltd., Technology transfer Russia New Delhi, India
Barez Industrial Group, Technology transfer Teheran, Iran
Eu-Retec (Pvt) Ltd., Production of industrial tires Nagoda, Kalutara, Sri Lanka
Modi Tyres Company Technology transfer and Private Ltd., New Delhi, India trademark license agreement for bias tires
America
Andujar, Minority shareholding (various dealer networks, Ecuador rubber plantation and rubber plant)
GTY Tire Company Joint venture with Toyo and Yokohama for the (partnership), Mount production of commercial vehicle tires Vernon, IL, USA
Equity and Debt Markets Relations Fact Book FY 2009
117 / © Continental AG VI.3. ContiTech
Equity and Debt Markets Relations Fact Book FY 2009
118 / © Continental AG ContiTech Business Structure
ContiTech
Benecke- Power Conveyor Elastomer Fluid Vibration Kaliko Air Spring Transmission Belt Group Coatings Technology Control Group Systems Group
● Steel cord belts ● Compressible printing ● Hoses, hose lines ● Air springs and air ● V-belts ● Conventional and ● Compact sheeting ● Fabric conveyor blankets for offset and quick spring systems for ● V-ribbed belts hydraulic rubber- ● Coated film ® belts for mining printing connectors for cars, -commercial ● Timing belts metal elements for ● TEPEO film and other ● Coated fabrics trucks and buses vehicles ● Belt drive kit-sets the auto industry: ● Slush skins industries ● Flat and shaped in: -buses ● Flat belts -spring strut ● Cut-to-size foam ● Lifting belts diaphragms for fuel -power steering -trailers ● PU timing belts bearings
● Skid carrying management and -air-conditioning -rolling stock as components in -engine mounts
belts industrial applications -heating and cooling ● Air spring damper complex belt drive -transmission ● Service material● Diaphragm materials circuits modules for trucks systems in suspension and diaphragms for -fuel systems and buses automotive and -hydro mounts gas, water and air- -turbocharger ● Sleeve air springs industrial -cab mounts conditioning systems systems for drivers’ seats applications ● Active and passive ● Composite materials for -oil and hydraulic and cab absorbers textile buildings systems suspension ● Sealing systems for ● Collapsible tanks for ● Air springs and air axle, brake and transport and storage ● Hoses and hose actuators for steering ● Concertina walls as lines for industrial industrial ● SCHWING- ® connecting element in applications applications METALL products buses and trains ● Tubing, couplings ● Compensators for mounting ● Gas holder diaphragms and plug-in machines and ● Material for chemical systems marine engines resistant suits ● Floating hoses ● Friction rings and ● Rubber sheets for flexo ● Dredge hoses wheels printings ● Oil & marine hoses
Equity and Debt Markets Relations Fact Book FY 2009
119 / © Continental AG
ContiTech Key Figures
(€ million) 2007 2008 2009
Sales 3,063.9 3,007.0 2,406.1 EBITDA 466.4 430.1 274.0 in % of sales 15.2 14.3 11.4 EBIT 362.8 329.1 169.4 in % of sales 11.8 10.9 7.0 EBIT adjusted 1) 326.4 242.3 in % of sales 1) 11.0 10.1
Operating Assets (avg.) 1,126.6 1,105.2 1,006.7 ROCE (avg.) in % 32.2 29.8 16.8 R&D expense 56.8 59.1 58.0 in % of sales 1.9 2.0 2.4 Capex 2) 99.8 110.8 82.8 in % of sales 3.3 3.7 3.4 Depreciation & amortization 3) 103.6 101.0 104.6 in % of sales 3.4 3.4 4.3 thereof impairment 0.3 0.4 3.7
1) EBIT w/o amortization of intangibles from PPA, consolidation and special effects; sales before changes in the scope of consolidation 2) Capex including software 3) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2009
120 / © Continental AG ContiTech Financials 3,063.9 3,007.0 (€ million) Sales
-20.0% 2,406.1
466.4 EBITDA 430.1
274.0 15.2% -36.3% EBITDA margin 14.3% 11.4%
FY 07 FY 08 FY 09
adj. EBIT 326.4 * 242.3 ** adj. EBIT margin 11.0% 10.1% * EBIT w/o amortization of intangibles PPA, consolidation (€ 5.1 mn) and special effects (€ 0.4 mn) ** EBIT w/o amortization of intangibles PPA, consolidation (€ 1.6 mn) and special effects (€ -70.8 mn)
Equity and Debt Markets Relations Fact Book FY 2009
121 / © Continental AG ContiTech Sales Structure by Region
Sales in 2009: € 2.4 bn
Others Asia 6% Germany 13% 41%
NAFTA 7%
Rest of Europe 33%
Equity and Debt Markets Relations Fact Book FY 2009
122 / © Continental AG ContiTech Market Leader in its Business Units
Business Unit Segments Europe World Automotive hoses & hose lines No. 1 No. 1 Fluid Technology Oil & Marine No. 1 No. 1
Benecke-Kaliko Group Automotive interior trim No. 1 No. 1
Power Transm. Group Multiple V-ribbed belts & timing belts No. 1 No. 2
Conveyor Belt Group Conveyor belts No. 1 No. 1
Elastomer Coatings Printing blankets No. 2 No. 3
Chassis sealing system No. 2 No. 3 Vibration Control Engine mounts for trucks No. 1
Truck & bus air springs No. 1 No. 1 Air Spring Systems Railway systems No. 1 No. 1
Equity and Debt Markets Relations Fact Book FY 2009
123 / © Continental AG
ContiTech Sales and Employees 2009 Business Unit Sales in € millions Employees
Fluid Technology 860 10,314
Conveyor Belt Group 427 3,101
Power Transmission Group 310 2,280
Benecke-Kaliko Group 246 1,544
Air Spring Systems 175 1,179
Vibration Control 187 1,892
Elastomer Coatings 78 583
ContiTech 2,406* 22,079** * Incl. other operations ** Incl. service functions
Equity and Debt Markets Relations Fact Book FY 2009
124 / © Continental AG ContiTech Manufacturing Sites in Germany & Europe Germany Europe
Benecke-Kaliko Air Spring Systems Fluid Technology Conveyor Belt Group Eislingen Hamburg Ashington, UK Szeged, Hungary Hanover Hanover Grimsby, UK Vólos, Greece Löhne Crawley, UK Puchov, Slovakia Peine Power Transmission Lyon, France Veliki Crljeni, Serbia Group Carei, Romania Conveyor Belt Group Dannenberg Nadab, Romania Vibration Control Bad Blankenburg Hanover Mako, Hungary Dolné Vestenice, Slovakia Northeim Motala, Sweden Partizanske, Slovakia Vibration Control Szeged, Hungary Elastomer Coatings Dannenberg Timişoara, Romania Elastomer Coatings Northeim Hamburg Vác, Hungary Moscow, Russia Waltershausen Hanover Madrid, Spain Hedemünden Barcelona, Spain Air Spring Systems Fluid Technology Northeim Nyiregyhaza, Hungary Berlin Power Transmission Group Bursa, Turkey Friedberg Timişoara, Romania Hann. Münden Wigan, UK Hamburg Hedemünden Karben Korbach Northeim Oedelsheim Oppenweiler Salzgitter Wackersdorf Waltershausen
Equity and Debt Markets Relations Fact Book FY 2009
125 / © Continental AG ContiTech Manufacturing Sites in America & Asia America Asia
Fluid Technology Conveyor Belt Group Fluid Technology Air Spring Systems Mexico City, Mexico San Luis Potosí, Mexico Changchun, China Ninghai, China Ponta Grossa, Brazil Santiago de Chile, Chile Jeonju, S. Korea Cheonan, Korea Houston, TX, USA Ponta Grossa, Brazil Somersworth, NH, USA Power Transmission Group Conveyor Belt Group Vibration Control Ningbo, China Calcutta, India Power Transmission Group Ponta Grossa, Brazil Shanghai, China Changzhi, China Ponta Grossa, Brazil San Luis Potosi, Mexico Delhi, India San Luis Potosí, Mexico Varzea Paulista, Brazil Busan, S. Korea Elastomer Coatings Shanghai, China Benecke Kaliko Air Springs Systems Vibration Control San Luis Potosí, Mexico San Luis Potosí, Mexico Ningbo, China Changshu, China Benecke-Kaliko Zhangjiagang, China
Equity and Debt Markets Relations Fact Book FY 2009
126 / © Continental AG ContiTech Selected Cooperations & Joint Ventures Germany Europe ContiTech INA GmbH, Development of power transmission systems SKF, Development partnership for Gigabox (suspension Herzogenaurach Stockholm, Sweden systems for rail vehicles)
BPW, Wiehl Strategic cooperation for air springs for trailers and axles
America Asia Cooper Standard NVH, Development and production of engine mounts ContiTech Fluid Production of power steering Auburn, IN, USA and chassis mount systems for the global Shanghai Co. Ltd., lines for Volkswagen, General automotive industry Shanghai, China Motors and others
Sansuy Benecke Ltda., Sales and marketing of laminates for car interiors São Paulo, Brazil Kurashiki Kako Development and production Corp., of platform components Kurashiki, Japan (aggregate and chassis mounts) for the automotive industry with European/American/Japanese affiliations, e.g. Ford and Mazda
Seonghwan, S. Korea JV for production of Air-Springs and Air Spring Systems
Equity and Debt Markets Relations Fact Book FY 2009
127 / © Continental AG VII. Share Information
Equity and Debt Markets Relations Fact Book FY 2009
128 / © Continental AG Share Information Share Data / ADR Data
Share Data
● Type of share No-par value share ● Bloomberg Ticker CON
● Reuters Ticker CONG
● German Security Identification Number (WKN) 543 900
● ISIN Number DE0005439004
● Shares outstanding as of December 31, 2009 169,005,983
● Shares outstanding as of January 14, 2010 200,005,983
ADR Data
● Ratio (ordinary share: ADR) 1 : 1 ● Bloomberg Ticker CTTAY
● Reuters Ticker CTTAY.PK
● ISIN Number US2107712000
● ADR Level Level 1
● Exchange OTC
● Sponsor Deutsche Bank Trust Company Americas
Equity and Debt Markets Relations Fact Book FY 2009
129 / © Continental AG Share Information Issued Capital
600 512 Issued capital 500 414 433 433 (in € millions) 373 375 400
300 200.0 169.0 169.0 200 161.7 Number of shares 135.4 146.5 (in millions) 100
0 2005 2006 2007 2008 2009 2010 *
* After issuance of 31 mn new shares in January 2010
Equity and Debt Markets Relations Fact Book FY 2009
130 / © Continental AG VIII. Glossary
Equity and Debt Markets Relations Fact Book FY 2009
131 / © Continental AG Financial Glossary (1)
ADR | American Depositary Receipt Capex I Capital expenditure on property, plant, equipment and software EBIT | Earnings Before Interest and Taxes EBITDA | EBIT Before Depreciation and Amortization EBIT margin | EBIT as a percentage of sales EBITDA margin | EBITDA as a percentage of sales FCF IF ree Cash Flow FSF I Forward Start Facility Gearing Ratio | Represents the net indebtedness divided by total equity, expressed as a percentage ISIN | International Security Identification Number Net Indebtedness |The net amount of interest-bearing liabilities and cash and cash equivalents as recognized in the balance sheet as well as the market values of the derivative instruments NIAT | Net Income attributable to the shareholders of the parent
Equity and Debt Markets Relations Fact Book FY 2009
132 / © Continental AG Financial Glossary (2)
Operating Assets |Operating assets are the assets less liabilities as reported in the balance sheet, without recognizing the net indebtedness, discounted trade bills, deferred tax assets and
income tax receivable and payable as well as other financial assets and debt
PPA I Purchase Price Allocation R&D I Research and Development Expenses ROCE (avg.)| Return On Capital Employed. We define ROCE (avg.) as the ratio of EBIT to average of quarterly operating assets
Equity and Debt Markets Relations Fact Book FY 2009
133 / © Continental AG Product Glossary (1)
ABS | Anti-Lock Brake System DCT | Double Clutch Transmission
ACC I Adaptive Cruise Control EBS | Electronic Brake System
ADAS I Advanced Driver Assistant System ESC | Electronic Stability Control
AMT | Automated Manual Transmission HEV | Hybrid Electric Vehicle
AT | Automatic Transmission HMI I Human Maschine Interface
C&S I Division Chassis & Safety HVAC | Heating, Ventilation and Air Conditioning
CSR | Conti Support Ring I I Division Interior
CT I Division ContiTech MAB/MIB I Motorcycle Anti-lock Braking System / Motorcycle Integrated Brake System
CV | Commercial Vehicle
MAF I Mass Airflow Sensor
CVT I Division Commercial Vehicle Tires
MT | Manual Transmission
CVaT | Continuous Variable Transmission
ECU | Electronic Control Unit
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NVH | Noise Vibration Harshness
OTR I Off The Road Tires
PCB I Printed Curcuit Board
PLT I Division Passenger & Light Truck Tires
PT I Division Powertrain
PWM I Pulse Width Modulation
RV | Recreational Vehicle
SSR | Self Supporting Runflat Tires
SUV | Sport Utility Vehicle
TCS | Traction Control System
TPMS I Tire Pressure Monitoring System
Equity and Debt Markets Relations Fact Book FY 2009
135 / © Continental AG Contact
Equity and Debt Markets Relations
Vahrenwalder Str.9 Rolf Woller 30165 Hannover Telephone: +49 511 938 1068 Germany e-mail: [email protected] Telephone: +49 511 938 1163 Fax: +49 511 938 1080 Gabriele Collatz e-mail: [email protected] Telephone: +49 511 938 1915 www.continental-ir.com e-mail: [email protected]
Equity and Debt Markets Relations Fact Book FY 2009
136 / © Continental AG Continental Financial Calendar
2010
Annual Shareholder’s Meeting April 28, 2010
Q1, Interim Report May 4, 2010
HY, Interim Report July 29, 2010
9M, Interim Report November 3, 2010
2011
Annual Financial Press Conference February 2011
Equity and Debt Markets Relations Fact Book FY 2009
137 / © Continental AG Disclaimer
This presentation has been prepared by Continental Aktiengesellschaft. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever. Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic or of the date they are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
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138 / © Continental AG