Slide 1: Investor Presentation Released July 2024
Investor Presentation Released July 2024 Fact Book Based on FY 2023 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com
Slide 2: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 2
Slide 3: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 3
Slide 4: Continental Group
Continental Group Leading the Way for Your Mobility Material expertise for industry solutions ~200,000 talented and Leading technology provider and dedicated employees systems integrator of choice for the Industry-benchmark software-defined in tires vehicle Continental AG Investor Presentation 20
Slide 5: Continental – Who We Are
Continental – Who We Are Contract Manufacturing € 41.4 billion sales ContiTech 1% 17% ~200,000 Automotive employees Sales by 49% group sector 34% 505 locations in 56 countries Tires and markets As at: December 31, 2023. Continental AG Investor Presentation 2024 Public July 1, 2024 5
Slide 6: Continental – Who We Are: Our Structure
Continental – Who We Are Our Structure Group Group Sector Automotive Tires ContiTech Business Area › Safety and Motion › Original Equipment › Industrial Solutions AMERICAS › Autonomous Mobility › Replacement APAC › Industrial Solutions APAC › User Experience › Replacement EMEA › Industrial Soluti
Slide 7: Continental on the Move
Continental on the Move 2010–2018 2018–2020 2020–2023 2024+ Era of Era of Era of Era of Success Decline Recalibration Execution Value accretive Deterioration of Stabilization and Excelling out of outperformance profitability laying foundation transformation Continental AG Investor Presentation 2024
Slide 8: Our Strategic Mission
2024+ Era of Execution Our Strategic Mission We are the mobility and material technology group for safe, smart and sustainable solutions. Continental AG Investor Presentation 2024 Public July 1, 2024 8
Slide 9: Our Approach & Commitment
2024+ Era of Execution Our Approach & Commitment The triple play for future value 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Management focus › Clear targets SHORT-TERM Improve efficiency › Accountability PERFORMANCE Consistent delivery › Execution › Prioritize MID-TERM Execute portfolio stra
Slide 10: Our Joint Contributions
2024+ Era of Execution Our Joint Contributions › Execute best-ownership › Portfolio execution team in place › Effective capital allocation mechanism › Exploit synergies and strategic capabilities Group › Reliable profitability and upside potential through increased industry share ContiTech Automotiv
Slide 11: 2024+ Era of Execution: Automotive
2024+ Era of Execution Automotive › LEAD In all product groups in value creation and technological excellence › FOCUS Strict portfolio management along value-accretive principles › Growth engine for › PERFORM Rigorous execution of cost reduction programs safe, connected and Top in operational and co
Slide 12: 2024+ Era of Execution: Tires
2024+ Era of Execution Tires › Strong resilience across business cycles › Best-in-class value creation and cash generation based on our CORE of › operational excellence › Strong cash › technology generation › brand power › Operational › Realizing OPPORTUNITIES by tapping into profit pools and gainin
Slide 13: 2024+ Era of Execution: ContiTech
2024+ Era of Execution ContiTech › ENSURE SUCCESS by focusing strong margin-accretive INDUSTRY BUSINESS › Legal and physical independence of OE Solutions business area › Rightsizing while improving performance of AUTOMOTIVE BUSINESS › Reliable profitability › Increase industry share to ~80% and upsi
Slide 14: Group Financial Outlook
Group Financial Outlook ContiTech Group Automotive 2023 Short-term Mid-term Tires Group €41.4 bn ~€44–48 bn ~€51–56 bn Automotive €20.3 bn ~€22–24 bn ~€26–29 bn Sales Tires €14.0 bn ~€15–16 bn ~€17–18 bn ContiTech €6.8 bn ~€7–8 bn ~€8–9 bn Group 6.1% >8% ~8–11% Adj. Automotive 1.9% >6% ~6–8% EBIT1 m
Slide 15: Executive Board
Executive Board Nikolai Setzer Olaf Schick Dr. Ariane Reinhart Chairperson of the Executive Board Chief Financial Officer Chief Human Relations & Sustainability Officer Group Communications and Public Affairs, Group Group Finance and Controlling, Group Human Relations, Group Sustainability, Director
Slide 16: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 16
Slide 17: Automotive at a Glance
Automotive at a Glance € 20.3 billion Adj. EBIT1 margin Global footprint in sales 1.9% 56 plants in 21 countries Product clusters 82 R&D locations ~102,500 in 18 countries employees >50 Creating value while driving the future of mobility Data shown as at December 31, 2023. 1 Before amortization of i
Slide 18: The Software-defined Vehicle: Our Definition
The Software-defined Vehicle Our Definition In a software-defined vehicle (SDV), functions are enabled by software. Decoupling software from hardware enables swift and continuous development and implementation of new functions and software updates throughout the vehicle’s Focus pivoting to the growi
Slide 19: Road to Cloud Ecosystem
Road to Cloud Ecosystem Enable. Develop. Integrate. Virtualization Connectivity Cloud Digital Twin We deliver value through: Cybersecurity The broadest system In-Vehicle Integration understanding across the Software Antenna ecosystem - from road to cloud Solutions ZCUs2 HPCs3 Display Continuous Deve
Slide 20: Our Industry: Changing Technology Requirements
Our Industry Changing Technology Requirements CSP1 Semi- CloudSupplier Antenna OEM2 ZCUs HPCs Display Sensors Actuators Tier 1 SW Vendor › Evolving system architectures › Cloud services › Evolving technology stacks › Consolidating multiple functions › Functions on demand › Evolving value chain › Spe
Slide 21: Our Industry: New Value Streams Emerge
Our Industry New Value Streams Emerge Function development stops at SOP1 Function development Hardware and function coupling Software development Middleware maintenance – software combined Software integration with hardware TRADITIONAL CAR Hardware Hardware Spare part delivery, development productio
Slide 22: Delivering Value for the Software-defined Vehicle
Our Answer Delivering Value for the Software-defined Vehicle Continental Automotive – Lead. Focus. Perform. Safety Autonomous User Architecture Software and and Motion Mobility Experience and Networking Central (SAM) (AM) (UX) (AN) Technologies (SCT) › Motion system › Scalable › Ultra-wide › Full st
Slide 23: LEAD
LEAD Continental AG Investor Presentation 2024 Public July 1, 2024 23
Slide 24: A Leading Systems Supplier
A Leading Systems Supplier Substantial High-tech and Leading software World-class high-quality automotive expertise paired portfolio electronic systems with hardware supplier partnerships Focused execution required to ensure future commercial success Continental AG Investor Presentation 2024 Public
Slide 25: LEAD In Our Focus Areas – or Exit
LEAD In Our Focus Areas – or Exit Main sales drivers Safe SAM › Wheel brake › EBS2 and one box ~4% ~100 bps OUTPERFORMANCE › Sensor systems Market CAGR1 2023–2028e › Airbag systems Exciting AN ~300 bps › Display solutions OUTPERFORMANCE › Digital cluster ~16% UX ~400 bps OUTPERFORMANCE › Access syst
Slide 26: LEAD One of the Largest Suppliers
LEAD One of the Largest Suppliers Example areas – around 50% of Automotive sales Electronic Brake System Radar Display Solutions Wheel Brake Others Others Continental Continental Continental Continental Peer 1 Peer 1 Others Peer 1 Others Peer 1 Peer 2 Peer 2 Peer 2 Peer 2 Airbag Systems Access Syste
Slide 27: Mastering all Fields: System Integrator of Choice
LEAD Mastering all Fields: System Integrator of Choice Our foundation We are THE system integrator Our offering High-quality › We combine software capabilities and automotive competence Realizing hardware paired Multiple party software integration ensuring automotive autonomous with software require
Slide 28: Combining Hardware and Software
LEAD Combining Hardware and Software Selected examples Today: Outstanding technology platform › Electronic brake system › Gateways › Radar, camera, lidar › One box SAM › Body controller AN › Ultrasonic sensors AM Step 1: Enhanced products – Higher content per vehicle › Future brake system 2 / 3 › Zo
Slide 29: FOCUS
FOCUS Continental AG Investor Presentation 2024 Public July 1, 2024 29
Slide 30: Active Portfolio Management
FOCUS Active Portfolio Management Decision criteria › Value creation › Technology focus › System expertise › Growth potential Execution plan ~25% of total business Review of entire portfolio Improve, sell or close will change Continental AG Investor Presentation 2024 Public July 1, 2024 30
Slide 31: Streamlining the Business
FOCUS Streamlining the Business Today’s structure Target structure Autonomous Mobility Autonomous Mobility Safety and Motion Safety and Motion ~€1.4 bn sales to improve, sell or close Architecture & Networking Architecture & Networking Software & Central Technologies Software & Central Technologies
Slide 32: User Experience – Continental as Best Owner?
FOCUS User Experience – Continental as Best Owner? Carve-out initiated to Highly attractive business create strategic options Strong order intake momentum Hardware-focused business Leading market position in display Significant investment solutions, head-up and digital cluster needs Not an integral
Slide 33: PERFORM
PERFORM Continental AG Investor Presentation 2024 Public July 1, 2024 33
Slide 34: Strict Profitability Management
PERFORM Strict Profitability Management Operating Operational Fixed-cost R&D leverage excellence reduction efficiency A B C D › Increase content › Manufacturing › Organizational › Consolidation per vehicle and improvements delayering › Best-cost locations new business › Bundling of models › Raise so
Slide 35: Manufacturing Footprint Today
PERFORM Manufacturing Footprint Today AMERICAS EUROPE APAC Production plants1 13 25 18 Belgium Great Britain China India 2019-29 Footprint Brazil USA › Mechelen › Ebbw Vale › Changchun Moonlake › Bangalore Optimization Program › Guarulhos › Culpeper* Czech Republic Hungary › Changsha › Gurgaon › Var
Slide 36: Profitability Target
PERFORM Profitability Target Sales (€ bn) | Adjusted EBIT1 margin (%) ~€26–29 bn ~€22–24 bn €20.3 bn Sales Other D measures Market C growth R&D efficiency AM SAM SMY UX AN ~6–8 2022 2023 B Fixed-cost reduction A >6 Operational excellence Operating Market leverage Adj. growth EBIT1 1.9 (%) 2023 VOLUM
Slide 37: BA Autonomous Mobility (AM)
BA Autonomous Mobility (AM) Mission: Delivering innovative and sustainable full-stack mobility solutions for everyone’s autonomy tomorrow billion €2.3 in sales Radars Cameras + ~ €1.1 bn from SMY1 AD control units System and software ~11,600 High-resolution lidars employees + SMY1 commercial + ~ 6,4
Slide 38: LEAD – BA Autonomous Mobility
LEAD – BA Autonomous Mobility Our Aspiration Our Key Capabilities Technology Leadership Components expertise Industry first hardware- Components and systems supplier of choice and industrialization as-a-service solution for passenger car solutions and L4 Cutting-edge technologies L4 service model sy
Slide 39: AM – Exclusive Partnership with Aurora
AM – Exclusive Partnership with Aurora Our Customers’ Needs: Chris Urmson, CEO Aurora 1 2 Our Solution: “Continental's legacy in › The transportation industry › Continental and Aurora partner to challenges: industrialize the first commercially development and › Cost increases scalable autonomous L4
Slide 40: BA Architecture & Networking
BA Architecture & Networking Mission: We provide the backbone of the intelligent and connected vehicle billion €4.0 in sales Legacy ECUs Connectivity + ~ €0.5 bn from SMY1 Access HPCs & zone ECUs Other products ~21,300 + SMY lighting employees solutions portfolio + ~ 2,200 from SMY1 Leveraging legac
Slide 41: LEAD – BA Architecture & Networking
LEAD – BA Architecture & Networking Our Aspiration Our Key Capabilities Scalable development and Partner for vehicle Technological Leadership compute solutions testing toolchains Enabling seamless connectivity and modern, Speed and robustness to HPCs and zones software development and (domain and cr
Slide 42: AN – High Performance Computers
AN – High Performance Computers 1 Our Customers’ Needs: 2 Our Solution Examples: › Manage complexity › Plug & Play HPC › Foundation architecture - central › Scalable and flexible concept for and zonal highly integrated cross-domain › Variant management and 3rd HPC solutions party SW suppliers › Smar
Slide 43: BA Safety & Motion (SAM)
BA Safety & Motion (SAM) Mission: We work every day to make mobility safer in a changing world. Our purpose to deliver leading solutions meets passion to contribute to every life in a sustainable world. Electronic brake billion €7.6 in sales systems Hydraulic brake systems Other products Restraint s
Slide 44: LEAD – BA Safety & Motion
LEAD – BA Safety & Motion Our Aspiration Our Key Capabilities Technological Leadership Innovative brake Leverage our unique understanding of the Sensor technology systems individual components to the complete system and control units Leading-edge Market leading to deliver innovative safety and motio
Slide 45: SAM – Future Brake Systems
SAM – Future Brake Systems 1 Our Customers’ Needs: 2 Our Solution Examples: › Mobility users: Vehicles that come › Modular and stepwise approach to a full stand still, safely, › FBS 0: Wet comfortably and controlled › FBS 1: Wet-by-wire (electric › OEMs: Modular plug & play design, pedal) simplified
Slide 46: BA Software & Central Technologies (SCT)
BA Software & Central Technologies (SCT) Mission: We anticipate, unify and deliver building blocks for today and tomorrow’s mobility Our portfolio: Internal services: External business: billion €0.4 › Technology, innovation and strategy › Elektrobit (OS and middleware) in sales › Software-defined ve
Slide 47: LEAD – BA Software & Central Technologies
LEAD – BA Software & Central Technologies Our Aspiration Our Key Capabilities Technology Leadership: Vehicle architecture OS, middleware and Anticipate future vehicle architectures and consulting cybersecurity technologies to master the transformation Trusted partner to Elektrobit and Argus toward s
Slide 48: BA User Experience (UX)
BA User Experience (UX) Mission: Our passion for technology makes your difference billion €3.5 in sales Legacy business Display solutions Full digital clusters Head-up displays ~14,900 employees Our innovations bring the differentiating factor for our customers Data shown as at December 31, 2023. Co
Slide 49: LEAD – BA User Experience
LEAD – BA User Experience Our Aspiration Our Capabilities Technological Leadership Innovation teams as Deep Display & HUD Most innovative supplier enabling partner of OEM and UX Software differentiation design teams creating know-how holistic experiences Value Management: Deep manufacturing Mega-fac
Slide 50: UX – Display Solutions
UX – Display Solutions 1 Our Customers’ Needs: 2 Our Solution Examples: › End Users: User Experience (UX) › Curved ultrawide display is the new horsepower and key › Scenic view head-up display buying criteria › Scalable from high-end to mid-class › OEMs: Key differentiation point and › Empower the e
Slide 51: Automotive Clear Path to Value Creation
Automotive Clear Path to Value Creation We are the technology provider and system integrator of choice for the software-defined vehicle We are in the market for the market We strictly execute our 3-pillar strategy to drive profitable growth We drive the future of mobility Continental AG Investor Pre
Slide 52: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 52
Slide 53: Tires at a Glance
Tires at a Glance High share of RE business Regional balance with on the back of a strong OE significant growth opportunities business in Americas and APAC € 14 billion OE in sales Americas EMEA 26% 34% 52% ~56,500 employees 74% 14% APAC Replacement Tires are our passion. We outperform the industry
Slide 54: Tires Vision 2030
Tires Vision 2030 OUR OUR CORE OPPORTUNITY Excellent Excellent tires tires remain remain our our We will be the #1 tire DNA. DNA. WeWe stand stand forfor solution provider. delivering profitable profitable growth, Tires are our passion. growth, reachingestablishing a podium us We outperform the amon
Slide 55: Strategically Enhancing Our Successful Business Model
Tires Vision 2030 Strategically Enhancing Our Successful Business Model Differentiation / Growth Excellence / Efficiency Balance global footprint and Industry-leading quality and strengthen service network operational efficiency Expanding value-adding Top-notch technology and digital solutions busin
Slide 56: CORE Industry-Leading Operational Excellence
CORE Industry-Leading Operational Excellence ~80% ~75% <8 Capacity in mega Best-cost Customer satisfaction plants (>100kt p.a.) 1 locations1 (measured in OE ppm) 2 Operational excellence is the foundation of our financial performance 1 As at December 31, 2023, in tonnage (total tires). 2 ppm: parts
Slide 57: CORE Major Benefits of Electrification
CORE Major Benefits of Electrification Accelerating opportunities from EVs Driven by our strong OE market position › BEV characteristics drive Continental BEV higher demand for UHP tires › OE favor premium tires homologations (total) 500+ meeting quality and technology requirements › “OE to replacem
Slide 58: CORE Boosting Our Mix Through UHP Growth
CORE Boosting Our Mix Through UHP1 Growth Our exceptional product line-up translates into …an increasing share of our ultra-high-performance tires “Outstanding” rating UHP share growth for Continental branded tires (PLT 2) awarded for the first time by the magazine 57% 45% Summer 45% 31% UHP share o
Slide 59: CORE Seizing Growth Opportunities in APAC and Americas
CORE Seizing Growth Opportunities in APAC and Americas Increasing global presence Supported by continued investment in our manufacturing and supply chain set-up Sales share of APAC and AM regions ~€1.6 bn invested in APAC/AM plants1 Plant expansions › Hefei (China) ~42% ~48% › Rayong (Thailand) › Cl
Slide 60: CORE Manufacturing Footprint
CORE Manufacturing Footprint AMERICAS EMEA APAC Production plants1 7 7 6 ~3% ~8% ~6% Tonnage2 (CAGR3 in %) 2023 2028e 2023 2028e 2023 2028e 1 As at December 31, 2023, excluding plants for semi products and retread production facilities. 2 Estimated production tonnage (in k ton for all tires). 3 CAGR
Slide 61: Responsibility
FROM Responsibility Linear view We have evolved the way we view and structure our strategic TO sustainability efforts. Circular view Continental AG Investor Presentation 2024 Public July 1, 2024 61
Slide 62: Responsibility we strive for…
100% 100% Responsibility responsible sourcing 100% carbon neutrality along and value chain sustainable materials our entire value chain We remain strongly committed to our agreed ambitions. 100% closed resource By 2050 at the latest, and product cycles 100% we strive for… green and safe operations 6
Slide 63: Ambitious Sustainability Roadmap as Key Differentiator
RESPONSIBILITY Ambitious Sustainability Roadmap as Key Differentiator Example: Industry benchmark 2022 – Operations1 Energy Intensity Renewable Electricity Mix Water Intensity CO2 Emissions Intensity 35% -22% 100% -50% -60% Energy usage per output (GJ/t) Share of renewables in Water usage per output
Slide 64: OPPORTUNITY Integrated Solutions for Fleets
OPPORTUNITY Integrated Solutions for Fleets In-house automotive expertise Holistic data-driven fleet management solutions for commercial customers as unique differentiator in tires industry Electronics & sensors portfolio LODC Lowest Overall Driving Cost Fleet management solutions Create joint value
Slide 65: Tires Financial Outlook – Updated Mid-term Targets
Tires Financial Outlook – Updated Mid-term Targets ~€17–18 bn ~€15–16 bn Sales €14 bn Cost management Price/mix vs. Volume/ raw materials efficiency Adj. EBIT1 13.5 ~13–16 (%) 2023 Short-term Mid-term 1 Before amortization of intangibles from PPA, changes in the scope of consolidation (only 2023), a
Slide 66: Tires Clear Path of Continued Value Creation
Tires Clear Path of Continued Value Creation Highly resilient business outperforming regardless of the circumstances Industry benchmark in value creation and cash generation performance Effective capital allocation in strategic profit pools Well-positioned industry leader to continue reliable outper
Slide 67: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 67
Slide 68: ContiTech at a Glance
ContiTech at a Glance Mixed portfolio with significant Regional balance with significant growth potential in industry growth potential in APAC € 6.8 billion APAC Americas in sales Industry 17% 37% 48% 52% ~42,000 employees Automotive 46% EMEA First choice for material-driven solutions Data shown as
Slide 69: Our Exciting Markets
Our Exciting Markets Industry 52% Construction Mining Industry & Energy & Home Quarries Management Off-Highway Material Handling & Printing & Packaging Commercial ICE Passenger Electric Passenger Mobility Manufacturing Technology Vehicles Vehicles Vehicles Automotive 48% Continental AG Investor Pres
Slide 70: Our Exciting Markets
Our Exciting Markets Industry 52% Surface solutions Conveying solutions Mining solutions Surface Solutions Surface Solutions Surface Solutions Industrial fluid solutions › Conveyor portfolio › Belt portfolio & Powertrain Belts Motor mounts › Hoses monitoring services › Engine mounts › Belts › Electr
Slide 71: Strengthening industry
2024+ Era of Execution Strengthening industry 2023 Ambition Why do we shift to industry? Automotive 20% › High-quality business Automotive 48% › Broader revenue streams › Longer product life cycles Industry 80% › Less cyclical Industry 52% › Seizing new growth opportunities Enhancing value creation
Slide 72: ContiTech Financial Outlook – Mid-term Targets
ContiTech Financial Outlook – Mid-term Targets ~ €8-9 bn Industry/Auto ~ €7-8 bn 80 / 20 €6.8 bn Industry/Auto Sales 60 / 40 Cost Management Automotive Industry Market Cost Management ~ 13 –15 Automotive Industry Market ~ 9 –11 >9 Adj. 6 .7 EBIT1 (%) 2023 VOLUME SELF-HELP Short-term VOLUME SELF-HELP
Slide 73: INDUSTRY
INDUSTRY Continental AG Investor Presentation 2024 Public July 1, 2024 73
Slide 74: Industry Clear Strategic Direction
Industry Clear Strategic Direction Capturing Strengthening industry share in replacement Ramping up hydraulic Growing APAC Ambition How will we do it? greenfield in sales Mexico Continue to grow BAL.ON › Organically › Increasing market penetration Industry › Expansion of product portfolio › Developi
Slide 75: Strengthening Industry Focus on our Growth Fields
Strengthening Industry Focus on our Growth Fields Industry 52% Construction Mining Industry & Energy & Home Quarries Management Off-Highway Material Handling & Printing & Packaging Commercial ICE Passenger Electric Passenger Mobility Manufacturing Technology Vehicles Vehicles Vehicles Automotive 48%
Slide 76: Industry Growth Engine Construction & Home
Industry Growth Engine Construction & Home Total addressable market: Expansion, renewal and upgrade of residential, Value 2023–2028e €6.5–7 bn commercial and infrastructure Growth CAGR 2% Our advantage: Our levers: ContiTech sales: High demand for efficient › Extremely compatible with Sales share 20
Slide 77: Construction & Home Surface Solutions
Construction & Home Surface Solutions 1 Our Customers’ Needs: 2 Our Solutions for Home & Garden and › Extremely reliable and durable Construction: surfaces to meet the challenging › Innovative surface solutions for interior and in-use environment (e.g. heat exterior resistance, rip protection, solar
Slide 78: Industry Growth Engine Energy Management
Industry Growth Engine Energy Management Total addressable market: Transformation toward efficiency, Value 2023–2028e €2–2.5 bn decarbonization and localization Growth CAGR 5% Our advantage: Our levers: ContiTech sales: High demand for collaboration › Partnering with key players Sales share 2023 to
Slide 79: Energy Management Ammonia Hoses
Energy Management Ammonia Hoses 1 Our Customers’ Needs: 2 Our Solution: › Efficient and safe handling of › Marine transfer hoses are ammonia with extensive technical designed for safe on-loading and requirements e.g. pressure and off-loading operations temperature, corrosiveness and › Various config
Slide 80: Industry Growth Engine Off-Highway Mobility
Industry Growth Engine Off-Highway Mobility Total addressable market: Demand for technological upgrades, increasing Value 2023–2028e €15.5–18 bn efficiency and new materials drives growth Growth CAGR 3% Our advantage: Our levers: ContiTech sales: Strong demand for high- › Partnering with OEs to set
Slide 81: Off-Highway Mobility High-Pressure Hydraulic Solutions
Off-Highway Mobility High-Pressure Hydraulic Solutions 1 Our Customers’ Needs: 2 Our Solution: › High-pressure hydraulic hose › Introduction of top-of-the-line solution with abrasion resistant abrasion resistant and flexible cover and small bend radius hydraulic hose requested by agriculture OEMs ›
Slide 82: AUTOMOTIVE
AUTOMOTIVE Continental AG Investor Presentation 2024 Public July 1, 2024 82
Slide 83: Automotive Clear Strategic Direction
Automotive Clear Strategic Direction Ambition Automotive Increasing profits and selective growth How will we do it? Original Equipment Solutions Short-term performance improvements Thermal Precision › Customer and product portfolio measures Management Sealing › Strict cost management Emission Dampin
Slide 84: Selective Approach Focus on our Growth Field
Selective Approach Focus on our Growth Field Industry 52% Construction Mining Industry & Energy & Home Quarries Management Off-Highway Material Handling & Printing & Packaging Commercial ICE Passenger Electric Passenger Mobility Manufacturing Technology Vehicles Vehicles Vehicles Automotive 48% Cont
Slide 85: Automotive Growth Engine Electric Vehicles
Automotive Growth Engine Electric Vehicles Total addressable market: Transition to batteries, new materials and net Value 2023–2028e €5.5–18 bn zero components Growth CAGR 27% Our advantage: Our levers: ContiTech sales: Strong demand for customized › Technical expertise to offer Sales share 2023 tec
Slide 86: Electric Vehicles R744 (CO2) Refrigerant Lines
Electric Vehicles R744 (CO2) Refrigerant Lines 1 Our Customers’ Needs: 2 Our Solution[s]: › Efficient and sustainable fluid › R744 (CO2) air conditioning lines solutions › Engineering services for thermal › Optimized passenger comfort management system development › Extended BEV driving range › Supp
Slide 87: ENSURE SUCCESS
ENSURE SUCCESS Continental AG Investor Presentation 2024 Public July 1, 2024 87
Slide 88: ContiTech Continuing Value Creation
ContiTech Continuing Value Creation Strategic capital allocation toward high-quality industry business Stronger industry OE position translates further into profitable replacement business Long-term value creation through market and customer focus Reliable profitability and upside potential through
Slide 89: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 89
Slide 90: Corporate Governance Corporate Bodies
Corporate Governance Corporate Bodies Two-tiered Board System Shareholders’ Meeting Shareholders’ exercise their rights of participation and control elects › › shareholder discharges discharges representatives reports reports › › › Supervisory Board Executive Board 6 members › 20 members appoints, C
Slide 91: Corporate Governance Supervisory Board
Corporate Governance Supervisory Board Shareholder representatives Employee representatives Prof. Dr.-Ing. Wolfgang Reitzle1 Christiane Benner3, Chairman of the Supervisory Board Deputy Chairwoman of the Supervisory Board Born 1949, German Born 1968, German First elected 2009 First elected 2018 Doro
Slide 92: Corporate Governance Supervisory Board
Corporate Governance Supervisory Board 20 board members Supervisory board tenure 10 shareholder 9 representatives 6 5 10 employee representatives 1-5 years 6-10 years >10 years Independence of shareholder representatives1 Age Gender Nationality 20% 15% 30% 40% 80% 70% 85% 40% <55 55-65 >65 Male Fema
Slide 93: Supervisory Board Committee Members
Corporate Governance Supervisory Board Chairman’s Committee Audit Committee Nomination Mediation Committee Committee for Related › Committee Party Transactions › › › › ▪ Prof. Dr. Wolfgang Reitzle ▪ Prof. Dr. Rolf ▪ Prof. Dr. Wolfgang Reitzle ▪ Prof. Dr. Wolfgang Reitzle ▪ Prof. Dr. Wolfgang Reitzle
Slide 94: Corporate Governance Presentation 2024
Corporate Governance Presentation 2024 › Good, responsible corporate governance geared toward sustainable, long-term value creation is the basis of the company's success in the interest of all its stakeholders. Corporate Governance Presentation Continental AG Investor Presentation 2024 Public July 1
Slide 95: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 95
Slide 96: Our Sustainability Ambition
Our Sustainability Ambition Guiding rails in a complex environment OUR KEY AMBITIONS + 8 ESSENTIALS carbon neutrality Good working conditions 100% along our entire value chain Green and safe factories 100% emission-free (no harmful emissions) mobility & industry Innovations & digitalization Benchm
Slide 97: Focus Topic: Carbon Neutrality
Focus Topic: Carbon Neutrality Total gross carbon footprint in 2023: ~104 mn CO2e Total per footprint part Emission categories in mn mt CO2e 0.07 Processing of sold products1 Customer and Carbon Accounting logic: product use- Own CO2 emissions (Scope 1 and 2) 0.42 Downstream transportation and relat
Slide 98: CO2 emissions Scope 1 and 2
Our Goal: 100% Carbon-neutral Own Operations by 2040 Reduction path for own CO2 emissions (Scope 1+2) Own CO2 emissions (Scope 1+2) CO2 emissions Scope 1 and 2 3.22 mn mt CO e 2 Action 1 | RE 100 100% renewable purchased electricity by end of 2020 (RE100) Reduction of approx. 70% of CO2 emissions 1.
Slide 99: CO2 emissions backpack Scope 3
Our Goal: 100% Along the Entire Value Chain by 2050 at the Latest Reduction levers for Continental’s gross CO2 backpack (Scope 3) 20.19 mn mt CO2e 22.38 mn mt CO e 2 Area symbolizes possible variations in the reduction, as scope 3 is not directly under Continental's control. Backpack (Scope 3) Actio
Slide 100: CO2 emissions customer and product use-related
Our Goal: 100% Along the Entire Value Chain by 2050 at the Latest Reduction levers for customer and product use-related CO2 emissions (Scope 3) Area symbolizes possible variations in the reduction, Customer and mn mt 89.75 mn mt CO2e 81.24 CO2e as scope 3 is not directly under Continental's control.
Slide 101: Circular Economy in Our Own Operations
Circular Economy in Our Own Operations Responsible handling of water and waste Challenges Approach Objective Saving › Water is an existential and important resource Risk-based targets for water security 4% 2% Water and a global frame- reduction of water reduction of water › Water scarcity and water
Slide 102: Responsible Value Chain Due Diligence System (RVCDDS)
Responsible Value Chain Due Diligence System (RVCDDS) Areas of RVC Commitments Our Responsible Value Chain Due Diligence System aims to protect humans & the environment as detailed in our RVC commitments via roles, responsibilities & tasks along 7 core processes: Labor Standards Security Practices 1
Slide 103: Sustainability / Memberships and Initiatives
Sustainability / Memberships and Initiatives Diversity Charter Source: Integrated Sustainability Report 2023, page 132 Continental AG Investor Presentation 2024 Public July 1, 2024 103
Slide 104: Sustainability / ESG Ratings
Sustainability / ESG Ratings Scoring Continental Classification AAA = best result CCC = worst result as of September 2023 3.6 3.3 3.4 5 = best practice 0 = no disclosure Continental is listed as of June 2023 Environment Social Governance in the following indices C+ A+ = best performance prime D- = w
Slide 105: Integrated Sustainability Report
Integrated Sustainability Report › Continental has published a sustainability report every year since 2012 and a combined non-financial statement each year since 2018, with both reports looking at the past fiscal year. › The main medium of our sustainability reporting is the integrated sustainabilit
Slide 106: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 106
Slide 107: Group at a Glance Outlook 2024
Group at a Glance Outlook 2024 ~€41.0 – 44.0 ~6.0 – 7.0% ~€0.7 – 1.1 billion in sales in adj. EBIT1 margin billion in adj. free cash flow2 Automotive ~€20.0 – 22.0 bn ~3.0 – 4.0% Tires ~€14.0 – 15.0 bn ~13.0 – 14.0% ContiTech ~€6.6 – 7.0 bn ~6.5 – 7.5% 1 Before amortization of intangibles from PPA,
Slide 108: Era of Execution Topline Development
Era of Execution Topline Development Sales (€ bn) ~51–56 ~44–48 41.4 ~8–9 ~7–8 ContiTech 6.8 ~17–18 ~15–16 Tires 14.0 Automotive ~22–24 ~26–29 20.3 2023 Short-term Mid-term Considering current portfolio. Continental AG Investor Presentation 2024 Public July 1, 2024 108
Slide 109: Era of Execution Path of Profitability
Era of Execution Path of Profitability Adjusted EBIT1 margin (%) ~8–11 Main drivers: >8 ~9–11 Volume Self-help >9 › Commercial excellence 6.1 › Outperformance in ContiTech targeted profit pools 6.7 ~13–16 › Operational excellence >13 › Footprint rightsizing Tires 13.5 ~6–8 Automotive 1.9 >6 2023 VOL
Slide 110: Era of Execution Effective Capital Allocation
Era of Execution Effective Capital Allocation Value › Capex creation › Debt › R&D › Dividend Strong › Equity Financing balance operations sheet Portfolio management › Best ownership reviews › M&A1 Strategic capital allocation to strengthen total shareholder return 1 Mergers and Acquisitions Continen
Slide 111: Era of Execution Updated Dividend Policy
Era of Execution Updated Dividend Policy Dividend per share1 (€) 4,75 4,50 4,25 3,75 3,25 3,00 2023 onwards payout ratio2 2,20 2,20 1,50 ~20% to ~40% (Previously ~15% to ~30%) 0,00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Payout ratio2 not 27% 28% 30% 30% 33% n.a. n.a. 31% 38% applied 1 Div
Slide 112: Era of Execution Committed to Investment Grade
Era of Execution Committed to Investment Grade Current credit rating Mid-term targets | Group Moody’s Baa2 Rating BBB/BBB+ (since August 23, 2022) Stable outlook Standard & Poor’s BBB Gearing ratio1 <40% (since March 22, 2023) Stable outlook Fitch BBB Equity ratio >30% (since December 12, 2023) Stab
Slide 113: Era of Execution Expectations on Cash Flow
Era of Execution Expectations on Cash Flow All figures mid-term Capital expenditure | Group Sectors Cash generation1 | Group Sectors Automotive ~6–7% Automotive >45% Tires ~7–8% Tires ˃60% ContiTech ~4–5% ContiTech ˃65% Capital expenditure | Group Cash conversion2 | Group ~6–7% >70% 1 Cash Generatio
Slide 114: Era of Execution Our Commitment
Era of Execution Our Commitment Automotive Tires ContiTech Short-term Mid-term Short-term Mid-term Short-term Mid-term Sales ~€22–24 bn ~€26–29 bn ~€15–16 bn ~€17–18 bn ~€7–8 bn ~€8–9 bn Adjusted EBIT1 >6% ~6–8% >13% ~13–16% >9% ~9–11% margin Return on capital >15% >20% >20% >23% >20% >22% employed2
Slide 115: Era of Execution Our Commitment
Era of Execution Our Commitment Group Short-term Mid-term Sales ~€44–48 bn ~€51–56 bn Adjusted EBIT1 margin >8% ~8–11% Return on capital employed2 >15% >20% Cash conversion3 >70% >70% 1 Before amortization of intangibles from PPA, and special effects. 2 ROCE – Ratio of EBIT to average operating asse
Slide 116: Group Clear Path to Value Creation
Group Clear Path to Value Creation Foundations laid for sustainable profitable growth Sharpened capital allocation in place Committed financially driven organization Welcome to our era of execution Continental AG Investor Presentation 2024 Public July 1, 2024 116
Slide 117: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft based on the Capital Market Day in December 2023, the full year results published in the 2023 annual report, as well as the 2023 sustainability report. It has not been independently verified. It does not constitute an
Slide 118: Contact: Your Investor Relations Team
Contact Your Investor Relations Team Continental-Plaza 1 e-mail: ir@conti.de 30175 Hanover fax: +49 511 938 1080 Germany www.continental-ir.com Rachel Arellano phone: +49 511 938 10478 Analysts and Institutional Investors e-mail: rachel.arellano@continental.com Andrea Kraft phone: +49 511 938 1880 A
Slide 119: Agenda
Agenda 1 Continental Group 3 2 Automotive Group Sector 16 3 Tires Group Sector 52 4 ContiTech Group Sector 67 5 Corporate Governance 89 6 Sustainability 95 7 Financials 106 8 Back-up 119 Continental AG Investor Presentation 2024 Public July 1, 2024 119
Slide 120: References: Useful Links to Continental Websites
References Useful Links to Continental Websites Investor Relations Investor Relations Capital Market Day Capital Market Day 2023 Latest Presentations Presentations Events Events Finance Calendar Finance Calendar Sustainability Sustainability Integrated Sustainability Report Integrated Sustainability
Slide 121: Continental Shareholder Structure
Continental Shareholder Structure Free Float in % › Total number of shares issued: 200,005,983 › As in the previous year, free float as defined by Deutsche Börse AG amounted to 54.0% as at the end of 2023. The most recent change took place on IHO Group September 17, 2013, when our major shareholder,
Slide 122: Continental Supervisory Board
Continental Supervisory Board Members Prof. Dr.-Ing. Wolfgang Reitzle Dr. Gunter Dunkel Isabel Corinna Knauf Klaus Rosenfeld › Curriculum Vitae - Prof. Dr.-Ing. Wolfgang Reitzle › Curriculum Vitae - Dr. Gunter Dunkel › Curriculum Vitae - Isabel C. Knauf › Curriculum Vitae - Klaus Rosenfeld › First e
Slide 123: Continental Executive Board
Continental Executive Board Members of Executive Board Nicolai Setzer Curriculum Vitae - Nikolai Setzer Olaf Schick Curriculum Vitae - Olaf Schick Dr. Ariane Reinhart Curriculum Vitae - Dr. Ariane Reinhart Christian Kötz Curriculum Vitae - Christian Kötz Philip Nelles Curriculum Vitae - Philip Nelle
Slide 124: Continental. The Future in Motion
Ontinental. The Future in Motion