Annual Report 2013 > with Sales of €33.3 Billion in 2013, Continental Is One of the World’S Leading Automotive Suppliers
Total Page:16
File Type:pdf, Size:1020Kb
Your Mobility. Your Freedom. Our Signature. > Annual Report 2013 > With sales of €33.3 billion in 2013, Continental is one of the world’s leading automotive suppliers. > Continental contributes to enhanced driving safety and global climate pro- tection – with innovative brake systems, systems and components for power- trains and chassis, instrumen tation, infotainment solutions, vehicle elec- tronics, tires, and technical elastomers. Continental is also an expert partner in networked automobile communication. > Continental currently employs around 178,000 people at 300 locations in 49 countries. Your Mobility. Your Freedom. Our Signature. > Highly developed, intelligent technologies for mobility, transport and processing make up our world. We want to provide the best solutions for each of our customers in each of our markets. All of our stakeholders will thus come to recognize us as the most value-creating, highly reliable and respected partner. 2013 Highlights › Continental share price up by 82% › Net indebtedness down by more than €1 billion › Return on capital employed (ROCE) up to more than 19% Key Figures for the Continental Corporation Owing to the first-time adoption of IAS 19 (revised 2011), Employee Benefits, as at January 1, 2013, all subsequent figures for the comparative period have been restated in accordance with the requirements of IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. in € millions 2013 2012 in % Sales 33,331.0 32,736.2 1.8 EBITDA 5,095.0 4,967.4 2.6 in % of sales 15.3 15.2 EBIT 3,263.7 3,186.2 2.4 in % of sales 9.8 9.7 Net income attributable to the shareholders of the parent 1,923.1 1,905.2 0.9 Earnings per share in € 9.62 9.53 0.9 Adjusted sales1 33,164.3 32,684.7 1.5 Adjusted operating result (adjusted EBIT)2 3,736.5 3,611.5 3.5 in % of adjusted sales 11.3 11.0 Free cash flow 1,818.3 1,652.5 10.0 Net indebtedness 4,289.3 5,319.9 –19.4 Gearing ratio in % 46.0 65.2 Total equity 9,322.2 8,156.4 14.3 Equity ratio in % 34.8 29.7 Number of employees as at December 313 177,762 169,639 4.8 Dividend per share in € 2.504 2.25 Share price at year-end5 in € 159.40 87.59 Share price5 (high) in € 161.90 87.95 Share price5 (low) in € 80.66 48.10 1 Before changes in the scope of consolidation. 2 Before amortization of intangible assets from the purchase price allocation (PPA), changes in the scope of consolidation, and special effects. 3 Excluding trainees. 4 Subject to the approval of the Annual Shareholders’ Meeting on April 25, 2014. 5 Price quotations of the Continental share in the XETRA system of Deutsche Börse AG. Overview of the Corporation Key Figures for Continental’s Core Business Areas Automotive Group in € millions 2013 2012 in % Sales 20,016.1 19,505.1 2.6 EBITDA 2,490.5 2,470.3 0.8 in % of sales 12.4 12.7 EBIT 1,158.9 1,134.5 2.2 in % of sales 5.8 5.8 Adjusted sales1 20,010.9 19,453.6 2.9 Adjusted operating result (adjusted EBIT)2 1,592.9 1,601.5 –0.5 in % of adjusted sales 8.0 8.2 Rubber Group in € millions 2013 2012 in % Sales 13,355.5 13,261.7 0.7 EBITDA 2,714.0 2,564.0 5.9 in % of sales 20.3 19.3 EBIT 2,214.8 2,120.1 4.5 in % of sales 16.6 16.0 Adjusted sales1 13,184.3 13,261.7 –0.6 Adjusted operating result (adjusted EBIT)2 2,256.0 2,091.6 7.9 in % of adjusted sales 17.1 15.8 1 Before changes in the scope of consolidation. 2 Before amortization of intangible assets from the purchase price allocation (PPA), changes in the scope of consolidation, and special effects. Contents > Contents > Annual Report 2013 > Continental AG 2 Contents > To Our Shareholders > Management Report > C3 Key Figures for the Continental Corporation Corporate Profile C4 Key Figures for Continental’s Core Business Areas 52 Structure of the Corporation 54 Corporate Strategy 6 Chairman’s Letter 57 Research and Development 60 Divisions and Business Units 10 Members of the Executive Board 70 Corporate Management 73 Sustainability 12 Your Mobility. Your Freedom. Our Signature. 73 Employees 77 Environment 24 Continental Shares and Bonds 81 Social Responsibility Supervisory Board Economic Report 32 Report of the Supervisory Board 82 Economic Development in Selected Regions 84 Macroeconomic Development Corporate Governance 84 Development of Key Customer Sectors 35 Corporate Governance Report and Declaration 87 Development of Raw Material Markets Regarding Key Management Practices 38 Compliance Earnings, Financial and Net Assets Position 40 Remuneration Report 90 Earnings Position 97 Financial Position 100 Net Assets Position 103 Key Figures for the Automotive Group Development of the Divisions 104 Chassis & Safety 107 Powertrain 110 Interior 113 Key Figures for the Rubber Group Development of the Divisions 114 Tires 117 ContiTech 119 Net Assets, Financial and Earnings Position of the Parent Company 122 Report Pursuant to Section 289 (4) and Section 315 (4) of HGB 125 Report on Subsequent Events 125 Dependent Company Report 125 Corporate Governance Declaration Pursuant to Section 289a of HGB 126 Report on Risks and Opportunities Report on Expected Developments 138 Forecast for Economic Development in Selected Regions 140 Macroeconomic Development 140 Development of Key Customer Sectors 142 Outlook for the Continental Corporation Contents > Annual Report 2013 > Continental AG 3 Consolidated Financial Statements > Further Information > 146 Statement of the Executive Board 240 Responsibility Statement by the Company’s 147 Independent Auditor’s Report Legal Representatives 148 Consolidated Statement of Income 241 Other Directorships – The Executive Board 149 Consolidated Statement of Comprehensive Income 242 Other Directorships – The Supervisory Board 150 Consolidated Statement of Financial Position 244 Ten-Year Review – Corporation 152 Consolidated Statement of Cash Flows 245 Glossary of Financial Terms 153 Consolidated Statement of Changes in Equity C5 Financial Calendar C5 Contact and Publication Details Notes to the Consolidated Financial Statements 154 Segment Reporting 158 General Information and Accounting Principles 168 New Accounting Pronouncements 174 Companies Consolidated 175 Acquisition and Sale of Companies and Business Operations 178 Notes to the Consolidated Statement of Income 185 Notes to the Consolidated Statement of Financial Position 229 Other Disclosures Pages 12 – 23 > Your Mobility. Your Freedom. Our Signature. Individual mobility is about having the freedom to get around as required in our private and professional lives. It is a basic human need that exists around the world. Developing technical solutions for the mobility of today and of the future is what drives us. And as a specialist in rubber and plastics technology, we are a preferred partner to many other key industries as well. We inform shareholders, analysts, shareholders’ associations, the media and interested members of the public equally on significant developments in the corporation. We thus provide all market participants with relevant information about Continental at the same time. To Our Shareholders > Contents > Annual Report 2013 > Continental AG 5 To Our Shareholders > 6 Chairman’s Letter 10 Members of the Executive Board 12 Your Mobility. Your Freedom. Our Signature. 24 Continental Shares and Bonds Supervisory Board 32 Report of the Supervisory Board Corporate Governance 35 Corporate Governance Report and Declaration Regarding Key Management Practices 38 Compliance 40 Remuneration Report To Our Shareholders > Chairman’s Letter > Annual Report 2013 > Continental AG 6 Chairman’s Letter > Dr. Elmar Degenhart, Chairman of the Executive Board A good player demonstrates a real passion to win, even when times are tough on the economic front. In the past year, your Continental did just that, growing in spite of weak economies in Southern Europe and some emerging markets and intensified competition around the world. The sales increase and the level of earnings underscore our strong competitiveness. Our financing rests on a solid foundation. This has been confirmed by the three major rating agencies Moody’s, Standard & Poor’s, and Fitch, all of which re-assigned us the investment grade rating without any restriction. The end of December 2013 saw our share price peaking at a then historic high of €161.90. On the DAX, we were once again the winner last year in terms of the relative rise in share price. All in all, last year we achieved further significant milestones on our successful path, strengthened the basis for profitable growth, and demonstrated our future potential. To Our Shareholders > Chairman’s Letter > Annual Report 2013 > Continental AG 7 As a result of all our efforts, you – our shareholders – recorded an 82% increase in the share price in the past year. On top of this, a dividend of €2.25 was paid, making for a total return of 86%. Your Continental shares not only significantly outperformed the DAX and the EURO STOXX 50, but also beat the EURO STOXX Auto- mobiles & Parts by 45 percentage points. Behind this successful track record is the strong commitment of our almost 180,000 Continental employees and their collaboration with our numerous customers and business partners. For this I wish to thank them on behalf of the entire Executive Board. Our global team once again proved that values create value. The two go together, since if we fail to put values into practice we cannot be competitive or create value. They are what determines how efficiently and effectively we perform our work, how successfully we operate around the world, and how quickly we launch pioneering new technologies on the market.