Continental AG · XETR:CON

Continental — UniCredit Automotive Credit Conference 2022

33 slides from Continental's conference presentation, Jun 22, 2022

  1. Slide 1: Continental AG

    Continental AG UniCredit Automotive Credit Conference, June 22, 2022 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Stefan Scholz, Group Treasurer

  2. Slide 2: Agenda

    Agenda 1 Financial Situation 2 Technology Trends 3 Sustainability 4 Q1 2022 Results 5 2022 Outlook Back-up UniCredit Automotive Credit Conference June 22, 2022 @ Continental AG Public 2

  3. Slide 3: Financial Position Remains Solid

    1 | Financial Situation Financial Position Remains Solid Liquidity and bond maturities (€ mn) Credit Lines Total liquidity available Bond maturities1 › €4 bn Revolving Credit Facility was not utilized 10,650 as of March 31, 2022 › Availability of the credit facilities is not subject to financial cov

  4. Slide 4: Investment Grade Credit Profile

    1 | Financial Situation Investment Grade Credit Profile Leverage ratio1 Gearing ratio2 Equity ratio3 n.a. n.a. Continental’s current credit rating is: Continental’s targets: › Fitch (since April 20, 2020): BBB, outlook stable › Rating: BBB / BBB+ › S&P (since March 30, 2020): BBB, outlook negative ›

  5. Slide 5: Implementation of Structural Measures on Track

    1 | Financial Situation Implementation of Structural Measures on Track Targeted annual gross cost savings Program details › Includes footprint, structures ~ €850 mn and processes › Contributions from central ~ 30% functions and business areas › Around 23,000 jobs worldwide affected › Major portion i

  6. Slide 6: Cash Outflow for Restructuring Predominantly in 2021 and 2022

    1 | Financial Situation Cash Outflow for Restructuring Predominantly in 2021 and 2022 Restructuring costs (€ bn) Cash outflow for restructuring (€ bn) ~ 0.7 ~ 1.1 Group 2021 2022E 2023E 2024E-26E Total costs, predominantly booked in 2019/2020 UniCredit Automotive Credit Conference June 22, 2022 @ Co

  7. Slide 7: Six Dominating Trends Will Define the Future of Mobility

    2 | Technology Trends Six Dominating Trends Will Define the Future of Mobility Autonomous User Mobility Experience Smart Safety Mobility Architecture and Software Networking UniCredit Automotive Credit Conference June 22, 2022 @ Continental AG Public 7

  8. Slide 8: Expanding Value Creation Opportunities in All Trends

    2 | Technology Trends Expanding Value Creation Opportunities in All Trends New World: Defined by Hardware and Software Old World: Defined by Hardware Autonomous Ecosystems Centralized Trends Automated Key differentiator Autonomous Mobility Assisted Islands Holistic Smart Mobility Concepts Domain Com

  9. Slide 9: Automotive – At The Forefront of User Experience

    2 | Technology Trends Automotive – At The Forefront of User Experience IN LAUNCH1 UPCOMING High i4 SOP Premium Volume OEM 2021/22 OEM L-Shape Display + Cockpit HPC2 C-Shape Display + Cockpit HPC2 V-Shape Display UPCOMING LAUNCHES NEW ACQUISITIONS UNDERWAY Business win Business win with German OEM wi

  10. Slide 10: Automotive – Leadership in High Performance Computers (HPCs)

    2 | Technology Trends Automotive – Leadership in High Performance Computers (HPCs) First to market Upcoming SOPs Future For Volkswagen Group’s MEB platform HPCs for single domains HPC servers for cross-domain solutions ~ 500,000 ICAS1 units ~ €5.5 bn cumulative > 15 active acquisitions underway deli

  11. Slide 11: Transformation Towards Innovative Mobility With a Comprehensive Portfolio

    2 | Technology Trends Transformation Towards Innovative Mobility With a Comprehensive Portfolio › Life cycle solutions › Display solutions › Line fit / CV1 solutions › Digital clusters › Service solutions › HUD2 / Projection solutions › Radar, Camera, Lidar › Brake systems › ADAS / AD systems3 › Saf

  12. Slide 12: Leveraging Strong AD Position to Capture Growth Opportunities

    2 | Technology Trends Leveraging Strong AD1 Position to Capture Growth Opportunities Leading AD1 Player Full Stack Solution Provider Growing Pipeline Revenue (€ bn) Continental + Partners Total addressable market3 Awarded to Continental 1.9 2.0 Compute & Software 1.7 1.7 1.6 Integration 2018 – 2021

  13. Slide 13: Continental's Total Carbon Footprint

    3 | Sustainability Continental’s Total Carbon Footprint (109.94 mn mt CO2e) at the 2021 2030 2040 at the latest 2050 latest 0.82 Reduction path in line with Related to own mn mt Scope 1 Paris Agreement operations emissions Direct emission from owned or CO2e controlled sources (e.g., local fossil fue

  14. Slide 14: A Unique Offer in the Automotive Supplier Industry

    3 | Sustainability A Unique Offer in the Automotive Supplier Industry WE OFFER OUR CUSTOMERS THE NEUTRALIZATION OF OUR CARBON Net|Zero|Now BACKPACK … provides the necessary speed for our customers to CO CO22 CO CO 2 2 reach their ambitious decarbonization targets. … meets the requirements of the Par

  15. Slide 15: The GreenConcept: The Most Progressive Tire In Terms of Sustainability

    3 | Sustainability The GreenConcept: The Most Progressive Tire In Terms of Sustainability Sustainable >50% of renewable and recycled materials! Current Technologies Emerging Technologies Lightweight 40% less weight with our innovative Vegetable Oils Recycled Refreshable and Resins Tread lightweight

  16. Slide 16: Q1 2022 Results: Review and Current Priorities

    4 | Q1 2022 Results Q1 2022 Results: Review and Current Priorities Review Q1 2022 Priorities FY 2022 Group Operational topics › (+) Uncertainties in demand due to the war in Eastern Europe persist, › Increase performance with efficiency programs and strengthen focus on however sales mostly unchanged

  17. Slide 17: Sales and Earnings Performance of Our Group Sectors

    4 | Q1 2022 Results Sales and Earnings Performance of Our Group Sectors Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing -1.2% +17.4% 4,114 4,246 3,295 17.1% 2,743 +3.6% 16.6% 565 1,570 455 24.5% 1,521 2.4% 10.2% -

  18. Slide 18: Regional Production vs. Automotive Group Sector Sales Growth

    4 | Q1 2022 Results Q1 2022 Results: Regional Production vs. Automotive Group Sector Sales Growth Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % Europe: share of sales North America: share of sales China: share of sales PC&LT production weighted Q1 2021

  19. Slide 19: 2022 Outlook: Market Expectations

    5 | 2022 Outlook Expectations do not include potential effects related to the current war In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. Depending on the severi

  20. Slide 20: 2022 Outlook: Group Guidance

    5 | 2022 Outlook In the event the geopolitical situation, in particular in Eastern Europe, remains tense or worsens, it could result in further lasting consequences for production, supply chains and demand. In addition, further negative effects could arise as a result of the ongoing COVID-19 pandemi

  21. Slide 21: UniCredit Automotive Credit Conference June 22, 2022 @ Continental AG Public

    UniCredit Automotive Credit Conference June 22, 2022 @ Continental AG Public

  22. Slide 22: Disclaimer

    Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the virtual UniCredit Automotive Credit Conference on June 22, 2022. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subsc

  23. Slide 23: Back-up

    Back-up UniCredit Automotive Credit Conference June 22, 2022 @ Continental AG Public 23

  24. Slide 24: Q1 2022 Free Cash Flow Impacted by Higher Inventories

    Back-up Q1 2022 Free Cash Flow (Continuing Operations Only) – Impacted by Higher Inventories Cash Flow (€ mn) Operating Cash Flow Operating Investing Free cash flow1 › Higher inventory levels and higher material prices led to a lower operating cash flow 542 333 Investing Cash Flow 124 -173 › Higher

  25. Slide 25: Q1 2022 Results: Most Important KPIs

    Back-up Q1 2022 Results: Most Important KPIs Q1 2021 Q1 2022 Change Comments Sales €8.6 bn €9.3 bn +8.2% Organic growth +5.3%; FX €266 mn Adjusted EBIT1 €728 mn €439 mn -€290 mn Adjusted EBIT1 margin 8.5% 4.7% -380 bps PPA2 -€40 mn -€39 mn Special effects -€35 mn -€17 mn Carve-out effects -€10 mn -

  26. Slide 26: Q1 2022 Results: Group Sector Automotive

    Back-up Q1 2022 Results: Group Sector Automotive Sales (€ mn) Adjusted EBIT (€ mn) Automotive › Impact from FX: +3.6% › Contribution to sales from ex Osram Continental JV › Organic growth: strong sales in Asia and North America nearly compensated lower volumes in Europe › Profitability negatively im

  27. Slide 27: Q1 2022 Results: Group Sector Tires

    Back-up Q1 2022 Results: Group Sector Tires Sales (€ mn) Adjusted EBIT (€ mn) Sales › Impact from FX: +2.7% › Volumes: +1.4% › Replacement volumes above prior year in all regions › Declining OE volumes › Price/mix: +15.9%, more than 50% attributable to pricing, predominantly in the Replacement marke

  28. Slide 28: Q1 2022 Results: Group Sector ContiTech

    Back-up Q1 2022 Results: Group Sector ContiTech Sales (€ mn) Adjusted EBIT (€ mn) Sales › Impact from FX: +2.8% › Automotive: volumes down Y-o-Y, burdened by decline in Europe; high volatility of call-offs well managed › Industrial and aftermarket: solid growth, especially in conveying solutions and

  29. Slide 29: Relevant Bonds

    Back-up Relevant Bonds Continental AG Conti-Gummi Finance Conti-Gummi Finance Continental AG Continental AG Issuer B.V., Netherlands1 B.V., Netherlands1 Issue Senior Notes Principal €500 mn €750 mn €625 mn €600 mn €750 mn amount Offering price 99.804% 99.559% 99.589% 99.802% 98.791% Rating Baa1 (Moo

  30. Slide 30: Continental's Credit Rating

    Back-up Continental’s Credit Rating S&P, Fitch / Moody’s BBB+ / Baa1 Investment grade BBB / Baa2 BBB- / Baa3 BB+ / Ba1 Non-investment BB / Ba2 grade Before BB- / Ba3 Siemens VDO B+ / B1 B / B2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Standard & Poor’s1 Moo

  31. Slide 31: References

    References Useful Links to Continental Websites Investor Relations www.continental-ir.com Latest Presentations Presentations Events Events Sustainability Sustainability 2021 Integrated Sustainability Report 2021 Integrated Sustainability Report Corporate Governance Principles Corporate Governance Pr

  32. Slide 32: Financial Calendar

    Continental Financial Calendar 2022 Annual Financial Press Conference March 9, 2022 Annual Shareholders’ Meeting April 29, 2022 Q1 Quarterly Statement May 11, 2022 Half-Year Financial Report August 9, 2022 Nine-Month Quarterly Statement November 10, 2022 2023 Annual Financial Press Conference March

  33. Slide 33: Contact

    Contact Equity and Debt Markets Relations Vahrenwalder Str. 9 e-mail: ir@conti.de 30165 Hanover Fax: +49 511 938 1080 Germany www.continental-ir.com Anna-Maria Fischer Phone: +49 511 938 12203 Andrea Kraft Phone: +49 511 938 1880 Head of Investor Relations (IR) e-mail: anna-maria.fischer@conti.de An

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