Continental Ag · XETR:CON
Continental — Investor Presentation (March 2021)
186 slides from Continental's investor presentation, March 2021
Slide 1: Investor Presentation March 2021 [Fact Book 2020]
Bitte decken Sie die schraffierte Fläche mit einem Bild ab. Please cover the shaded area with a picture. (24,4 x 7,6 cm) Investor Presentation March 2021 [Fact Book 2020] Ticker: CON ADR-Ticker: CTTAY Investor Relations http://w ww.continental-ir.com
Slide 2: Agenda
Agenda Continental – Overview and Strategy Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Ba
Slide 3: We Are a Global Powerhouse
Continental We Are a Global Powerhouse A leading player First to market Industry- ~236,000 with software- benchmark talented and in autonomous operational efficiency mobility defined dedicated vehicle architecture in Tires employees Strategy Meeting July 2020 Public Investor Presentation, March 2021
Slide 4: Changing Economic Environment
Changing Economic Environment Positive Mid-term Growth Outlook, but Well Below Previous Expectations Light vehicle (LV) production (million units) Light vehicle (LV) replacement tire sales (million units) 115 1,600 110 1,550 1,500 105 1,450 100 1,400 95 1,350 90 1,300 85 1,250 1,200 80 1,150 75 1,10
Slide 5: Technological and Societal Changes
Technological and Societal Changes Challenges and Opportunities Digitalization Speed Sustainability Technology Shift Competitive Environment Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 5
Slide 6: Our Objectives
Our Objectives What Drives Our Strategy? What do Emerge as a winner we want? of the transformation. Create value for all stakeholders. Customers, suppliers, employees, partners, communities and shareholders. Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 6
Slide 7: Our Strategy
Our Strategy Emerge as a Winner of the Transformation Strengthen operational Differentiate Turn change performance our portfolio into opportunity › Right-size cost structure › Win in growth businesses › Embrace sustainability › Commitment to efficiency › Manage value businesses › Focus on passion to
Slide 8: Strengthen Operational Performance
Strengthen Operational Performance Right-size Cost Structure Via Reductions and Shift to Best Cost Annual gross cost savings target Continental’s contribution excluding powertrain Total >€1 bn by 2023 2019 Mid-term Powertrain Automotive Technologies Technologies Best-cost ~15% ~60% share in ~70% ~75
Slide 9: Strengthen Operational Performance
Strengthen Operational Performance Multiple Activities Underway to Improve Productivity and Quality Targets Selected examples Energy Automation/ TiresGym 100 efficiency digitalization Operational Increase effectiveness, excellence efficiency and flexibility Quality First Total Quality Continental pr
Slide 10: Differentiate Our Portfolio
Differentiate Our Portfolio Differentiation of Our Portfolio Between Growth and Value Automotive Technologies Tires ContiTech Growth Software and Architecture Fleet Smart Autonomous Smart services, solutions › Fast-growing markets systems and mobility mobility selective beyond excellence networking
Slide 11: Differentiate the Portfolio
Differentiate the Portfolio Focused Management Approaches to Best Crystallize Value How we manage Strategic optionality Growth Profitability Investment Considerations › Competitive funding Value-accretive Innovation to expand for investment needs Growth outperformance Long-term profitability market
Slide 12: Turn Change into Opportunity
Turn Change into Opportunity Embracing Sustainability in Everything We Do Targets1 Activities Accountability Together with our value chain partners We actively unleash sustainable Aligned with shareholders and latest by 2050, we strive for: market potential in all business units Long-term incentive
Slide 13: Our Values Our Mindset
Turn Change into Opportunity “Passion to Win” and “Transparency and Ownership” Have Top Focus Our Values Our Mindset 75% of employees do agree Transparency and Passion Ownership to win For one another 72% of employees Freedom do agree to act Flexibility Quality 77 % of employees and Agility and Impa
Slide 14: Agenda
Agenda Continental Group Sector Automotive Technologies – Overview Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strateg
Slide 15: Transformation of the Automotive Industry
Transformation of the Automotive Industry Six Dominating Trends Will Define the Future of Mobility Autonomous User Mobility Experience Smart Safety Mobility Architecture and Softw are Netw orking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 15
Slide 16: Expanding Value Creation Opportunities in All Trends
Transformation of the Automotive Industry 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
Slide 17: Transformation into Automotive Technologies
Transformation into Automotive Technologies Realigning Our Activities into Action Fields to Better Serve Trends Safe. Connected. Convenient. We Drive the Future of Mobility. Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 17
Slide 18: Realignment Leverages Synergies
Transformation into Automotive Technologies Realignment Leverages Synergies Across Multiple Dimensions Project management Horizontal integration Managing highest › Combining functions across domains complexity across action › Standardized hardware and software platforms to realize fields and parties
Slide 19: Action Fields to be Managed as Growth or Value
Differentiate Our Portfolio Action Fields to be Managed as “Growth” or “Value” Expected outperformance1 ∑ ~ +2 to +4%-pts Growth €15.3 bn › Fast-growing markets ~ +10%-pts Autonomous Mobility › Outperformance driven by Smart Mobility ~ +10%-pts technological innovation Architecture and Networking ~
Slide 20: Adjust Our Cost Structure
Strengthen Operational Performance Adjust Our Cost Structure to Deliver Targeted Cost Savings Annual gross cost savings target Contribution from Automotive Technologies 2019 Mid-term Total > €1 bn by 2023 Powertrain Automotive Technologies Technologies Best-cost ~15% ~60% share in ~75% ~85% manufact
Slide 21: Automotive Technologies: Adjusted EBIT Margin Bridge
Automotive Technologies: Adjusted EBIT1 Margin Bridge We Strive for an Adjusted EBIT1 Margin of ~ 6% to 8% in the Mid-term ~ 6% to 8% -1.8% 2020 Growth Operational Mid-term target performance › Based on mid-term IHS light › Right-sized cost structure in vehicle production forecast terms of manufactu
Slide 22: Agenda
Agenda Continental Group Sector Automotive Technologies – Strategic Action Fields Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials
Slide 23: Architecture and Networking
Strategic Action Field: Architecture and Networking Leading the Way Toward Software-defined Vehicles Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental
Slide 24: Leading the Way toward Software-defined Vehicles
Leading the Way toward Software-defined Vehicles Complexity and Functional Growth Is Limited by Current Approach Going forward Up2now › Conventional architecture and functions › Function-defined architecture Based on gateway, body controller, other ECUs Based on ICAS1 High Performance Computer (HPC)
Slide 25: Leading the Way toward Software-defined Vehicles
Leading the Way toward Software-defined Vehicles Complexity and Functional Growth Is Limited by Current Approach Going forward Up2now Patchwork architecture Function-defined architecture › Up to ~100 ECUs, › Few HPCs and zones, limited computing power significant computing power › Functionality isol
Slide 26: Vehicle as De-facto IoT Device
Leading the Way toward Software-defined Vehicles Vehicle as De-facto IoT Device – New Value Streams Across Lifecycle Going forward Up2now Value per Value per vehicle1 vehicle1 Cloud services New features and functions Software maintenance Complexity & System Integration System Integration functional
Slide 27: First-to-market in X-domain Computing Solutions
Leading the Way toward Software-defined Vehicles We Are First-to-market and Top Player in X-domain Computing Solutions HPC projects won and in acquisition (#) Total order intake so far: > €4 bn LTS ICAS 3D Cluster SOP 2020 2021 2022 2023 2024 2025 Awarded to ADAS Safety & Motion Body Cockpit Cross D
Slide 28: Why We Have Been Winning
Leading the Way toward Software-defined Vehicles Why We Have Been Winning: Providing Solutions that Capture Value Customer Integration of Lack of software Managing new Challenges complex systems expertise business models Continental › Capability to provide › Superior capabilities › Enabling new recu
Slide 29: Fully Integrated Functional Stacks
Leading the Way toward Software-defined Vehicles Unique Capability to Provide Fully Integrated Functional Stacks Domains Body Cockpit AD/ADAS Safety & Motion Cloud Vehicle Vehicle API & Services Cloud API & Services Services Softw are Update, Data Analytics, Cyber Security Foundation Service incl. O
Slide 30: Fully Integrated Functional Stacks
Leading the Way toward Software-defined Vehicles Unique Capability to Provide Fully Integrated Functional Stacks Building Blocks System Integration Toolkit Cloud … Services / Applications PMT Application … Body Cockpit ADAS/ Safety/ House of Solutions AD Motion Automotive SW Platform Middleware … Di
Slide 31: Strong Business Growth Enabled by Future Architecture
Leading the Way toward Software-defined Vehicles Strong Business Growth Enabled by Future Architecture Competency Sales in Action Field1 (€) 2 + Additional growth across all strategic action fields Expected Outperformance Additional HPCs Software and systems ∑ ~ +3%-pts › ADAS/AD › System integratio
Slide 32: Software and Systems Excellence
Strategic Action Field: Software and Systems Excellence Our Strengths Overcome Software Challenges Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental A
Slide 33: Software-defined Vehicles Face Numerous Challenges
Software-defined Vehicles… … Face Numerous Challenges Explosion of High degree Long product Vague complexity of variants lifetimes standards Safety › Customer › Regional › Long-term mainte- › Generic industry › Safety-critical expectations requirements nance period standards mission and regulatory ›
Slide 34: Our Strengths Overcome Software Challenges
Our Strengths Overcome Software Challenges We Cover the Entire Spectrum of Customer Needs 60% 40% Non-differentiating software Differentiating software › Common functionality required › Unique functionality for specific of all vehicles, regardless of We cover OEMs, models, regions, brand, OEM, trim
Slide 35: Software Experts in Every Field
Software Experts in Every Field Competence Continuously Improving with New Specialist Staff, Acquisitions and Training Number of software and IT specialists Software-related acquisitions In-house Software Academy > 22,000 Boost software expertise 2015 >20,000 › Effective on-boarding new hires > 19,0
Slide 36: Scalable, Integrated and Cloud-ready Platforms
Scalable, Integrated and Cloud-ready Platforms Technology We Deliver Software Stacks for Present and Future Architectures Continental’s Technologies Open for 3rd party integration Tool Cloud Differentiating Cyber Security Fleet frame- software1 Operations Center management work Enables customers to
Slide 37: Speed and Agility
Speed and Agility Workflow We Manage the Complexity of Software Integration End2End Real-time traceability Software delivery feature requests | bug Continental KPI deports External reports | software software factory software factories › Continuous integration, testing and delivery OEMs and partners
Slide 38: Collaborations Based on Trust
Collaborations Based on Trust Collaboration Software-defined Vehicles Require a New Collaboration Model Hardware and function coupling – Software treated like hardware Function dev elopment stops at SOP 1 Tier1 OEM Function development Middleware Tier2 Tier1 Middlew are maintenance ECU integration H
Slide 39: Our Strong Partnerships Within the Ecosystem
Collaborations Based on Trust Collaboration Our Strong Partnerships Within the Ecosystem Technology Dassault Systemes | HPE Pioneer | Sennheiser | Synopsys Ansys | dSPACE | SIEMENS IBM ADASIS | SENSORIS | ELISA Telekom | Microsoft VW | BMW | Ford Consortia Navigation Data Standard | VDA Toyota | Ren
Slide 40: Autonomous Mobility
Strategic Action Field: Autonomous Mobility On the Way to Autonomous Mobility Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 40
Slide 41: Continental's Autonomous Mobility Business
Continental’s Autonomous Mobility Business Leveraging Strong AD1 Position to Capture Growth Opportunities Leading AD1 Player Full Stack Solution Provider Growing Pipeline Revenue Continental + Partners Total addressable market 3 Awarded to Continental €2.0 bn €1.9 bn Compute & Software €1.7 bn Integ
Slide 42: Portfolio for Automated Driving
Continental’s Portfolio for Automated Driving Level 2 Plus Solutions Addressing Significant Growth Continental technology in series in series from 2021 from 2021/22 Partly Automated Driv ing “L2 Plus” Highly Automated Driv ing (HAD) (SAE L2) L2 “Performance” L2 “Premium” (SAE L3) HAD Ready Softw are
Slide 43: From Vision to Perception
From Vision to Perception Sensor Know-how Enables Vision Solutions & Functions Perception Success Image Camera “Vision” Safety Functions SOP: 2019 Processing Continental Continental Full Vision Vision + Vision Stack Solution L2 Obj ects Pixels Stack Partner Integration 3rd party vision stack Sensor
Slide 44: Software Stack and Hardware Platform Solutions
Software Stack and Hardware Platform Solutions Modular & Scalable to Manage High Complexity Full Stack Capability High Performance Computer (AD HPC) Partly Automated “L2 Plus” Highly Automated Fully Automated Driving and Parking Driv ing (SAE L2) Performance Premium Driv ing (SAE L3) Driv ing (SAE L
Slide 45: AI and Simulation for the Next Era of AD
We Are Ready for the Challenges of the Future AI and Simulation for the Next Era of AD Technologies The Vital Importance of Data Quality & Efficient Data Management AI Competence Center Neural Network Development Global Test Vehicle Fleet Synthetic Data Generation Industry Leading Core development S
Slide 46: Exploiting Additional Business Areas
Exploiting Additional Business Areas Markets of Interest Software as a Product Commercial Vehicles Mobility Provider Relevance › Softw are w ill be a key differentiator w ithin › First commercial autonomous fleet › Autonomous fleet operations expected automotive operations expected w ithin dedicated
Slide 47: Sustainable Growth Through Increasing Content per Vehicle
Continental’s Autonomous Mobility Business Sustainable Growth Through Our Increasing Content per Vehicle Sales in Action Field1 (€) Future Growth Drivers Expected Outperformance2 Software as a Product System Integration › Licenses and updates + ∑ ~ +10%-pts ~ +80%-pts AD Control Units / AD High Perf
Slide 48: Smart Mobility
Strategic Action Field: Smart Mobility Becoming a Leader in Smart Mobility Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 48
Slide 49: Smart Mobility Key Statements
Smart Mobility Key Statements/Executive Summary Mobility today partly smart: A B Fragmented, most unconnected, island solutions Smart mobility: Connects data and uses knowledge to provide insights and recommendations Use data for Smart solutions Service business › Various customer groups + Telematic
Slide 50: Growing Need for Smart Mobility Solutions
Growing Need for Smart Mobility Solutions Converging Requirements & Demands from CV and PV Worlds Commercial Vehicle Growth Private & Fleet Operators Fleet Operators Drivers of Passenger Vehicles › 100% of trucks connected Digital logistics › New business models like value chain sharing & hailing di
Slide 51: Key Challenges of Smart Mobility
Key Challenges of Smart Mobility Our Capabilities and Solutions Provide Customer Value Difficult to interpret Scattered landscape Necessity to use Customer data from a multitude of independent several solutions Challenges of sensors and elements in parallel actuators Continental Modular full stack L
Slide 52: Comprehensive Smart Mobility Solutions
Comprehensive Smart Mobility Solutions Expanding Offerings to Cover Needs of Diverse Customer Groups Customer CV OEMs PV OEMs Logistics Mass Vocational & Breakdown Workshops Mobility Groups Fleets Transit Off-Highway Service & other AM Fleets Fleets Providers Applications Fleet CV Fleets type PV Fle
Slide 53: Established in Full Stack
Continental Established in Full Stack Modular Architecture for More Service Opportunities Established service Existing back-end infrastructure and running services (ContiTech, fleet management system, Tire Vertical stand-alone architecture Horizontal coherent and modular building blocks information
Slide 54: Smart Mobility Business
Continental’s Smart Mobility Business Comprehensive Portfolio of Solutions to Drive Strong Growth Sales in Action Field1 (€) Expected Outperformance2 Remote Vehicle Data › Cross-brand vehicle data access solution ∑ ~ +10%-pts Key as a Service ~ +50%-pts › Established OE and fleet smartphone integrat
Slide 55: User Experience
Strategic Action Field: User Experience Joy of Use, Ease of Use and Safe Driving Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 55
Slide 56: User Experience (UX)
User Experience (UX) UX Matters: Joy of Use, Ease of Use and Safe Driving Software & System Visual › Augmented Reality › Display Solutions › 3D Content › Head Up Displays › Monitoring algorithms › Cabin Sensing System Integration › Cockpit HPC1 Audial › Sound Solutions Tactile outside We deliver > 1
Slide 57: Leading in All Four Core Competences
User Experience What Makes Us Successful: Leading in All Four Core Competences DESIGN TECHNOLOGY INTERACTION INTEGRATION TODAY Flat 2D Separated One-way Stand-alone HMI1 displays devices communication controllers TOMORROW › Large displays, 3D Integration of Perfect networking High-performance › Inte
Slide 58: User Experience Design
User Experience Design Creating Uniqueness Through Design Launched Upcoming Future From Design to Award VW Curved Center C-Shape Interactive Shytech Surfaces TOUAREG Stack 1ST to market SOP 2022 MB E-/S- Side by Side L-Shape Kinematic Pillar-to-Pillar & Class Cabin Solutions 1ST to market SOP 2021 S
Slide 59: User Experience Technology
User Experience Technology We Integrate Innovative Features Increasing Our Value Own hardware value creation and refinement by Continental Electronic Camera + infrared Die cast Purchased parts PCBs 1 (IR) illumination housings Backlight LED PCB1 Front Display Backlight glass panel mech. components H
Slide 60: User Experience Interaction
User Experience Interaction We Orchestrate the "One" Holistic Experience Software & System Visual System Integration Audial Tactile outside Tactile inside Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 60
Slide 61: User Experience Integration
User Experience Integration Simply Scalable Luxury Simple Fully integrated 3D CONTENT MB S-Class LeiaLoft TM OEM SW OEM SW Hyundai Genesis UX SW UX SW UX SW Product Product Product Product VW ID.3 +UX +OEM +3D Entry Strategy Meeting July 2020 Citroen C4 Public Pictures featured on this page belong t
Slide 62: Horizontal Knowledge Drives Our Innovations
User Experience Integration Horizontal Knowledge Drives Our Innovations All UX domains Display Solutions Interior High Camera Safety and Performance Cockpit Body ADAS Motion Head Up Computers Display Cabin Sensing, 3D Transparent Augmented Reality Driver Monitoring Health, Wellbeing Hood Strategy Me
Slide 63: User Experience Business
Continental’s User Experience Business Driving Our Digital Transformation: We Outperform the Market Sales in Action Field1 (€) Further grow th in system integration Further grow th in softw are and systems Expected Outperformance2 Related HPCs › Cockpit HPC + Software and Systems › UX content + ∑ ~
Slide 64: Safety
Strategic Action Field: Safety Safety Is Not Negotiable Autonomous Smart User Safety Mobility Mobility Experience Software and Systems Excellence Architecture and Networking Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 64
Slide 65: Our Vision Zero
Our Vision Zero Safe Mobility Is Our Passion – Saving Lives Our Devotion Normal Driving Hazardous Situations Crash Hydraulic Brake System Electronic Brake System Restraint System “Safe Stop and Stand Still” “Stabilize and Emergency Brake” “Mitigate the Impact” All our solutions are based on: Strateg
Slide 66: Sensors Are the Base for Safety and Automation
Sensors Are the Base for Safety and Automation Strong Position Today. Extending Portfolio for Tomorrow’s Opportunities Automotive trends Wheel Speed Sensors drive increase High resolution, AD3 ready of vehicle functions 2022 Today Tomorrow Strong position leveraging Assert position through our engin
Slide 67: All Future Cars Need a Brake System
All Future Cars Need a Brake System Friction Brakes with Electronic Brake System Stay the Dominating Solution Normal Emergency Stabilization Standstill Fail Braking Braking Management Operational Friction Brake & EBS Recuperation only Strategy Meeting July 2020 Public Investor Presentation, March 20
Slide 68: All Future Cars Need a Brake System
All Future Cars Need a Brake System Top Market Position by Translation of Trends into Tangible Products Market 2025 The New Generation of Drum Brakes Ø EPB3 content per car › Low brake dust emissions › Corrosion resistant ~125% › Integrated electric parking brake 100% › Patented design Today Mid-ter
Slide 69: Integration Increases Content per Car
All Future Cars Need a Brake System Integration Increases Content per Car Conventional = different components One Box = integration into one unit One Box Installation Rates4 › Superior performance › Full recuperation ~5% ~30% › HAD1 ready › Better packaging Today Long-term Typical content per car 6
Slide 70: Restraint Systems Become Anticipatory and Connected
Restraint Systems Become Anticipatory and Connected Continued Top Market Position. Leverage In-house Portfolio and Expertise Trends Occupant Freedom Vehicle 30 Awards 30 Awards Designs 2018 2019 Near Field Environment Model Safety Standards Occupant Safety Monitoring New Functions ADAS PreCrash Safe
Slide 71: System and Integration Expertise Is Key For Safety
System and Integration Expertise Is Key For Safety Well Prepared for Next Step of Vertical and Horizontal Function Integration All Driving Situations Complete Chain of Effects Comprehensive Portfolio Normal Hazardous Crash Driving Situations Extensive knowledge and understanding of the system – from
Slide 72: Safety & Motion HPC Will Be the Future
Safety & Motion HPC Will Be the Future Our Expertise Makes Us the Right Development and Integration Partner Market Outlook Growth in Enhanced Functions/Features Safety & Motion HPC1 50% Market CAGR Chassis Rolling Today Long-term Source: Continental own estimates Body HPC AD HPC 4 RFIs2 running wit
Slide 73: Continental's Safety Business
Continental’s Safety Business Leading Player with Track Record of Profitable Growth Sales in Action Field1 (€) Expected Outperformance2 Safety & Motion High Performance Computer › Translate system and integration expertise to upcoming central ECU3 market ∑ ~ +1%-pts Sensors ~ +3%-pts › Refine and ex
Slide 74: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 75: Autonomous Mobility and Safety (AMS)
Autonomous Mobility and Safety (AMS) Our Vision and Mission Key Facts Safe and Dynamic Driving Toward Vision Zero – SensePlanAct Sales 2020: Safe Mobility Is Our Passion – Saving Lives Our Devotion. €7.5 billion Employees1: We integrate safety technologies and master vehicle dynamics to realize safe
Slide 76: AMS: Product Portfolio
AMS: Product Portfolio Comprehensive Product Portfolio Along the Chain of Effects Autonomous Mobility Safety Radar Sensors Hydraulic Camera Functions brake systems Assisted and Safety and Automated Motion Electronic Lidar Driving Control brake systems AD1 HPC2/ Restraint AD control units Strategy Me
Slide 77: AMS: Sales Split
AMS: Sales Split Our Sales Contribution to the Action Fields AMS Sales in Action Fields1 (€) Expected outperformance2 ∑ ~ +2 to +4%-pts Smart Mobility Growth › Fast-growing markets Autonomous › Outperformance driven by ~ +10%-pts technological innovation Mobility › Focus: market position, growth 7.5
Slide 78: AMS Value Contributor: Safety
AMS Value Contributor: Safety Strong and Solid Business AMS Sales in Action Field1 (€) Safety & Motion High-performance Computer Expected outperformance2 › Offers new opportunities. With our extensive safety expertise & understanding of systems we are the partner of choice ∑ ~ +1%-pts Restraint Syst
Slide 79: AMS Growth Driver: Autonomous Mobility
AMS Growth Driver: Autonomous Mobility Sustainable Growth Through Our Increasing Content per Vehicle AMS Sales in Action Field1 (€) Expected outperformance2 High Resolution Lidars ∑ ~ +10%-pts › Complete portfolio from short to long range. Leverage experience with strong partner. Introduction in ≥ L
Slide 80: AMS: Strengthen Operational Performance
AMS: Strengthen Operational Performance Right-size Cost Structure Via Reductions and Shift to Best Cost Annual gross cost savings target Contribution from AMS Total > €1 bn by 2023 2019 Mid-term Powertrain Best cost Technologies AMS ~15% ~15% share in ~75% ~80% manufacturing Best cost ~25% share in
Slide 81: AMS: Adjusted EBIT Margin Bridge
AMS: Adjusted EBIT1 Margin Bridge We Strive for an Adjusted EBIT Margin of ~ 6% to 8% in the Mid-term ~ 6% to 8% 1.3% 2020 Growth Operational Mid-term target Performance › Based on mid-term IHS light › Right-size cost structure in vehicle production forecast from terms of manufacturing and R&D Novem
Slide 82: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 83: Vehicle Networking and Information (VNI)
Vehicle Networking and Information (VNI) Our Vision and Mission Key Facts Always On Sales 2020: We care for information management in the vehicle and beyond €7.9 billion Connect Connect drivers and passengers Employees1: Inform User experience for 47,789 superior and safe joy of use worldwide Custom
Slide 84: VNI: Business Units and Product Portfolio
Vehicle Networking and Information (VNI) Business Units and Product Portfolio1 With Leading Positions in All Areas Connected Car Networking Human Machine Interface Commercial Vehicles and Services Networked mobility Driving the trend starts with us Shaping smart solutions and services Telematics Acc
Slide 85: VNI: Sales Split
VNI: Sales Split We Focus on Architecture and Networking, UX3 and Smart Mobility VNI Sales in Action Fields1 (€) Expected outperformance2 ∑ ~ +2 to +4%-pts Autonomous mobility Growth ~ +10%-pts Smart mobility › Fast-growing markets › Outperformance driven by 7.9 bn Architecture and technological inn
Slide 86: VNI Value Contributor: User Experience
VNI Value Contributor: User Experience Perfectly Positioned to Benefit from Fast Transition VNI Sales in Action Field1 (€) Access/Continental Smart Access › Next generation of secure digital car access – from key to smartphone Expected outperformance2 Head-up display ∑ ~ +1%-pts › Enhanced interacti
Slide 87: VNI Growth Driver: Architecture and Networking
VNI Growth Driver: Architecture and Networking New Architectures and HPCs Are a Must for Fully Connected Vehicles VNI Sales in Action Field1 (€) Connectivity › Highest relevance for fully connected eco-systems, latest technologies (IAM6, 5G …) Expected outperformance2 ∑ ~ +3%-pts Body and Cockpit HP
Slide 88: VNI Growth Driver: Smart Mobility
VNI Growth Driver: Smart Mobility Strong Position in CV Services and Telematics Primes Continental to Scale Up VNI Sales in Action Field1 (€) Remote vehicle data Expected outperformance2 › Cross-brand vehicle data access solution ∑ ~ +10%-pts Key as a service › Access integrated into smartphones; es
Slide 89: VNI: Strengthen Operational Performance
VNI: Strengthen Operational Performance Right-sized Cost Structure Via Reductions and Shift to Best Cost Annual gross cost savings target Contribution from VNI Total > €1 bn by 2023 2019 Mid-term Powertrain Technologies Best cost ~15% share in ~80% ~90% manufacturing VNI ~45% ~25% Best cost Rubber s
Slide 90: VNI: Adjusted EBIT Margin Bridge
VNI: Adjusted EBIT1 Margin Bridge We Strive for an Adjusted EBIT1 Margin of ~ 6% to 8% in the Mid-term ~ 6% to 8% -4.8% 2020 Growth Operational Mid-term target performance › Based on mid-term IHS light- › Improved cost position, vehicle production forecast adjusted cost structure from November 2020
Slide 91: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 92: Tires: A Decade of Profitable Growth
Tires A Decade of Outstanding Profitable Growth – And There Is More to Come Key Achievements Business Split 2020 2009 2020 By Customer Segment By Region Americas €5.8 billion €10.2 billion Replacement 30% 77% Sales Team APAC 14% 31% 44% outside Sales outside EMEA balance EMEA EMEA OE 56% €0.8 €1.3 2
Slide 93: Tires: Business Development
Tires: Business Development Outstanding Growth Slowed Down While Costs Continued to Rise High Growth Phase Lower Growth Phase +9.3% sales CAGR1 +2.3% sales CAGR2 13 Sales (€ bn) +7.8% costs CAGR1 +3.2% costs CAGR2 12 Costs (€ bn) 11 10 9 Main drivers: 8 Raw materials and FX Fixed costs (incl. D&A) 7
Slide 94: Tires: Vision 2030
Tires: Vision 2030 OUR OUR We are inspired CORE OPPORTUNITY every day to make Excellent tires remain our We will be the #1 tire DNA. We stand for solution provider. your mobility profitable growth, establishing us among safer, smarter and the top tire companies. more sustainable. We put customers fi
Slide 95: Tires: Vision 2030
Tires: Vision 2030 Strategically Enhancing Our Successful Business Model Differentiation / Growth Excellence / Efficiency Balance global footprint and Industry-leading strengthen service network operational efficiency Expanding value-adding Top-notch technology and digital solutions business product
Slide 96: Our Core – Leading Tire Technology
Tires: Our Core – Leading Tire Technology Customer Approved: Advanced Technology Ready to Capture EV Growth EV Tire Challenges Our Technology Solutions Our BEV Customer Awards First to market Low Rolling Resistance with „A+ tire“, exceeding level A requirements Higher Torque by 16% First to market H
Slide 97: Manage for Growth or Value
Tires: Our Core – Manage for Growth or Value Continuing to Grow, Diversify and Improve Our Global Sales Portfolio Passenger & Light Truck Tires1 Truck Tires1 +81% +44% CAGR2 CAGR2 +14% Manage +9% for growth CAGR2 Manage APAC EMEA for growth +7% Americas Americas CAGR2 EMEA CAGR2 Manage APAC +6% +2%
Slide 98: In the Market for the Market
Tires: Our Core – In the Market for the Market Growth Outside Europe Achieved with More Localized Production Americas (tonnage) EMEA (tonnage) APAC (tonnage) 2010 2019 mid-term 2010 2019 mid-term 2010 2019 mid-term ■ Sales ■ Production Strategy Meeting July 2020 Public Investor Presentation, March 2
Slide 99: Excellence in Operational Efficiency
Tires: Our Core – Excellence in Operational Efficiency Mega Plants and High Best-Cost Share Provide Excellent Cost Position Annual plant output in 2019 (in kt) Our advantages Mega plants for scale Smaller plants for market proximity >80% of output in mega plants (>100 kt)2 300 200 >75% ofcostcapacit
Slide 100: Excellence in Operational Efficiency
Tires: Our Core – Excellence in Operational Efficiency Sustained High Utilization While Differentiated Product Portfolio Drives Mix Ensuring highest efficiency levels … … while capturing profitable mix gains! Capacity utilization (tonnage, in %) Complexity (# of different PLT articles) 100% 12,000 T
Slide 101: Continuous Mix Improvement
Tires: Our Core – Continuous Mix Improvement Passenger and Light Truck Tires (PLT) – Mix Improvement Driven by ≥18" mn units 60 39% 38% 38% 36% 50 33% 32% 31% 30% 40 28% 31 30 32 25% 25% 26% 25 17 21 30 30 15 10 13 8 6 20 10 21 21 21 22 22 21 22 23 23 22 19 17 0 2009 2010 2011 2012 2013 2014 2015 20
Slide 102: Brand & Product Mix Improvement
Tires: Our Core – Continuous Mix Improvement Passenger and Light Truck Tires – Brand & Product Mix Improvement Brand mix Product category mix passenger and light truck tires sales passenger car and light truck sales (mn units) (mn units) 142 142 120 120 32 99 99 30 65% 6 22 66% 19 17 55% 2009 2019 2
Slide 103: Our Core – Targets
Tires: Our Core – Targets We Stand for Industry-leading Operational Excellence inventory >80% >75% >90% >6 turns Capacity in Highly flexible Best-cost Capacity mega plants and efficient locations1 utilization1 (>100kt p.a.)1 supply chain Strategy Meeting July 2020 Public 1 Expected by 2022. As of 20
Slide 104: Tires: Our Opportunity
Tires: Our Opportunity Fleets, Connectivity and New Mobility Drive Demand for New Solutions Fleets New Mobility Connectivity New Customer Needs Data-driven services Integrated solutions Strategy Meeting July 2020 New business models Public Investor Presentation, March 2021 © Continental AG 104
Slide 105: From Tires and Services to Integrated Solutions
Tires: Our Opportunity From Tires and Services to Integrated Solutions Provider Heading toward Embracing digitalization Moving to selling value Coming from tires Integrated Offering Single Bundling single services Intelligent tire solutions provider tires services Strategy Meeting July 2020 Public I
Slide 106: Conti360 Holistic Solution Portfolio
Tires: Our Opportunity Conti360: Holistic Solution Portfolio to Fulfill Evolving Customer Needs Tire condition monitoring Retread solutions 24 7/ Breakdown Analytics Service service and optimization Premium Tire and Tires vehicle services Strategy Meeting July 2020 Public Investor Presentation, Marc
Slide 107: Increasing Value Creation and Customer Retention
Tires: Our Opportunity Increasing Value Creation and Customer Retention Single Product Subscription Growth and Service Sale Revenue through new revenue streams Margins through increased services Stability through subscription models Tires Services Retread Electronics Conti360° Returns Strategy Meeti
Slide 108: Commercializing New Opportunities
Tires: Our Opportunity Commercializing New Opportunities into Sustainable Value Creation Market Automotive Tires sales split Growth expertise through Data-driven new revenue streams services Mid-term today to long-term Margins through New increased services business models Stability through subscrip
Slide 109: Tires: Our Responsibility
Tires: Our Responsibility A Key Differentiator for Our Future Success Our Proof Points Material Sourcing Operations We will be the › Sustainable materials › Highly energy and sourced fairly resource efficient most progressive operations tire company in terms Use Phase End of Use of environmental and
Slide 110: Eight Strategic Fields Across Value Chain
Tires: Our Responsibility Our Eight Strategic Fields Cover all Four Phases of the Value Chain Material Sourcing Operations Use Phase End of Use Sustainable Materials Green Operations Clean and Safe Mobility Renew ing and Recycling Sustainable Supply Chain Responsible Employer Responsible Citizen Str
Slide 111: Sustainable Solutions Along the Value Chain
Tires: Our Responsibility Sustainable and Value-creating Solutions Along the Entire Value Chain Material Sourcing Operations Use Phase End of Use Winner German Sustainability Award Pioneering in Benchmark in ~ 25% avg. rolling resistance Strongly growing sustainable materials water and energy usage
Slide 112: Links to Further Insights
Tires: Our Responsibility Links to Further Insights about Projects and Engagements Please click on the logos for more Information. Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 112
Slide 113: Tires: Adjusted EBIT Margin Bridge
Tires: Adjusted EBIT1 Margin Bridge Industry-leading Profitability 13.2% ~ 12% to 16% 2020 Growth Operational Mid-term target performance › Utilize strong brand to capture price / mix opportunities › Raise capacity utilization back to >90% › Outgrow markets in Americas, APAC and Specialty Tires › Ex
Slide 114: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 115: ContiTech: Global Leader in Technical Rubber and Plastic
ContiTech Global Leader in Technical Rubber and Plastic Products Automotive original Our sales distribution Industry and equipment (2020) automotive aftermarket Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 115
Slide 116: From Rubber Products to Smart Solutions
ContiTech: From Rubber Products to Smart Solutions German rubber company Global leader in technical rubber and plastic products Connected products Our smart solutions Past Present Strategy Meeting July 2020 Public Future Investor Presentation, March 2021 © Continental AG 116
Slide 117: Automotive Megatrends
ContiTech: Why We Are Developing Beyond Rubber The World Is Changing: Automotive Megatrends ICE1 Technology Hybrids BEV2 Gasoline engine Hybrids Electrified powertrain engines › ~ 78 connections › ~ 89 connections › ~ 95 connections › ~ 14.3 m plastic lines › ~ 20.7 m plastic lines › ~ 26.8 m plasti
Slide 118: Industry Megatrends
ContiTech: Why We Are Developing Beyond Rubber The World Is Changing: Industry Megatrends Infrastructure changes Automation Industry solutions › Trainlines and transportation › Automated harvesting › Predictive maintenance › Alternative energies › Automated production › Connectivity › Internet of Th
Slide 119: ContiTech: Getting on Track
ContiTech: Getting on Track Fit For Success in a Challenging Environment Operational performance Slowdown in key markets Major acquisitions 6.2 6.3 6.4 5.4 5.5 5.6 3.9 2014 2015 2016 Strategy Meeting July2017 2020 2018 2019 2020 Sales (€ bn) Public Investor Presentation, March 2021 © Continental AG
Slide 120: Operational Excellence and Accelerate Growth
› Connecting our products, making them smart › Development of digital capabilities › Expansion of rubber expertise › Development of innovative materials Operational excellence Accelerate growth and capture value Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 120
Slide 121: ContiTech: Perform!
ContiTech: Perform! Strong Focus on Operational Performance Since 2018 ~ -12% 6.3 5.6 7.6% ~ 9% to 11% 7.6% 2018 2020 Mid-term 1 Sales (€ bn) Adj. EBIT Margin Performance measures 1. Structural improvements 2. Operational excellence › Capacity alignment › Manufacturing performance Improved cost stru
Slide 122: Transform and Innovate!
ContiTech: Transform and Innovate! Focus on Highly Attractive Growth Opportunities ContiTech value fields ContiTech growth fields ~ +0-2% CAGR ~ +3-5% CAGR Limited growth due to structural changes within industries Market growth driven by the megatrends sustainability, population growth and urbaniza
Slide 123: Accelerate Growth and Capture Value
ContiTech: Transform and Innovate! Well Positioned to Accelerate Growth and Capture Value Sales (€) Growth fields Outperformance › Focus on outperformance of market development Σ ~ +1% › Differentiate through material and digital expertise 5.6 bn › Capture organic and inorganic growth opportunities
Slide 124: Digital Solutions and New Materials
ContiTech: Transform and Innovate! Digital Solutions and New Materials Offer Sizable Business Potential Drone Inspection BEV 1 hose lines Strategy Meeting July 2020 Public 1 BEV: Battery electric vehicles. | 2 Content in electric vehicle versus in a same sized internal combustion engine vehicle. Inv
Slide 125: ContiTech: Innovation Fields
ContiTech: Innovation Fields Leveraging Existing Competencies within Continental Sensorics Connectivity Mobile & Data Analytics & Thermoplastics Sustainable Web SW AI Materials Strategy Meeting July 2020 Digitalization Public Materials Investor Presentation, March 2021 © Continental AG 125
Slide 126: ContiTech: Adjusted EBIT Margin Bridge
ContiTech: Adjusted EBIT1 Margin Bridge We Strive For ~ 9% to 11% in the Mid-term ~ 9% to 11% 7.6% 2020 Growth Operational Mid-term target performance › Volume recovery › Structural improvements › Outperformance in growth › Cost optimization fields › Portfolio transformation Strategy Meeting July 20
Slide 127: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 128: Two-Tier Board System – Corporate Bodies
Corporate Governance Two-Tier Board System – Corporate Bodies Corporate bodies of the company Shareholders’ Meeting Shareholders exercise their rights of participation and control Elects › › Discharges Reports Discharges Reports › › › shareholder representatives Supervisory Board Executive Board Cha
Slide 129: Executive Board of Continental AG
Corporate Governance Executive Board of Continental AG Nikolai Setzer (born in 1971) Helmut Matschi (born in 1963) Chairman of the Executive Board Vehicle Networking and Information Chairman of the Automotive Board Appointed until: March 2024 Appointed until: March 2024 First appointed: August 2009
Slide 130: Supervisory Board – Key Facts
Corporate Governance Supervisory Board – Key Facts 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 Age Gender Nationality representatives1 25% 25% 30% 20% 70% 70% 80% 50% <55 55-65 >
Slide 131: Supervisory Board of Continental AG
Corporate Governance Supervisory Board of Continental AG Shareholder representatives Employee representatives Prof. Dr.-Ing. Wolfgang Reitzle, born 1949 Christiane Benner, born 1968 Chairman of the Supervisory Board Deputy Chairwoman of the Supervisory Board Elected until the end of the 2024 ASM (si
Slide 132: New Remuneration System for the Executive Board
Corporate Governance New Remuneration System for the Executive Board 2020 Onwards1 Organization Realignm ent Continental acts in the changing industries by transforming into a holding-ty pe structure to increase its agility and flexibility. Aims of Agile Workstyle & Netw ork Culture New Compensation
Slide 133: Performance, Collaboration and Sustainability
Corporate Governance We Emphasize Performance, Collaboration and Sustainability FAIRNESS VIABILITY TRANSFORMATION Consistent Competitive Aligned with shareholders › Uniform system for Executive Board, › Comparable to other employers in Long-term incentive program utilizes three Senior Executives and
Slide 134: Remuneration of an Executive Board Member
Corporate Governance Remuneration of an Executive Board Member Responsible for a Business Area € mn 6 Maximum remuneration 5 4 Target remuneration 3 (100% target achievement) 4-year term 2 Minimum remuneration 1 0 Fixed Additional Service Performance Long Term Total remuneration benefits 1 costs bon
Slide 135: Business Responsibility for Short-Term Incentive
Corporate Governance Consideration of Business Responsibility for Short-Term Incentive (STI) Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 135
Slide 136: Structure of the Performance Bonus (STI)
Corporate Governance Structure of the Performance Bonus (STI) 1 A maximum of 200% of the target amount can be achieved. Strategy Meeting July 2020 2 Net amount; from the net inflow of the performance bonus, shares of Continental AG with Public a value of 20% of the gross payout amount must be purcha
Slide 137: TSR and Sustainability for Long-Term Incentive
Corporate Governance Consideration of TSR and Sustainability for Long-Term Incentive (LTI) Adjusted to fulfill the DCGK legal requirements and investor’s expectations Number of Virtuell Number of Virtuell Shares Granted Performance Index (PI) = Shares Vested Relative TSR1 Sustainability Score 1.5 1.
Slide 138: Structure of the 2020 Long-Term Incentive
Corporate Governance Structure of the 2020 Long-Term Incentive (2020 LTI) Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 138
Slide 139: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 140: Our Sustainability Ambition
Our Sustainability Ambition Providing the Framework to Turn Change into Opportunities Our Key Ambitions + 8 Essentials By 2050 at the latest, we and our value chain partners are striving for: Good working conditions 100% Carbon Neutrality along our entire value chain Green and safe factories Innovat
Slide 141: Management of Sustainability
Management of Sustainability Systematic Approach Based on Ownership, Integration and KPIs Governance Executive Board and Sustainability Rating management involved in Steering Committee lead by Upper range Performance Group Sustainability Strategy Integration Reporting High-quality external Ambitions
Slide 142: Implementation of the Ambitions
Implementation of the Ambitions Ranges from Products to Supply Chain Our Value Chain Supply Products & Chain Operations Customers Carbon neutrality along our entire value chain ● ● ● Product example: Emission-free mobility and industry ● ● ● Components for ID.3 Closed resource and product cycles ● ●
Slide 143: Pathway for Full Carbon Neutrality
Continental’s Comprehensive Pathway for Full Carbon Neutrality along Our Entire Value Chain 2020 Entirely green purchased electricity 2022 Entirely Carbon neutral business with emission-free vehicles 2040 Entirely Carbon neutral own operations 2050 at the latest 100% carbon neutral along our entire
Slide 144: What Does Carbon Neutrality Mean for Continental?
What Does Carbon Neutrality Mean for Continental? Overview and Terminology on CO2 Emissions 1 0.99 related to mn mt CO2e 100-120 mn mt CO e 2 related to our own operations our business activity Scope 2 Scope 1 emissions Scope 3 emissions emissions Emissions indirectly resulting from the extraction o
Slide 145: How Will We Reach Our CO2 Targets?
How Will We Reach Our CO2 Targets for Own Operations? Scope 1&2 3.22 mn mt CO2e emissions CO2 Emissions Scope 1 & 2 Action 1 | RE 100 › Our targets are in line with the 1.5°C trajectory for Scope 1 & 100% renewable purchased electricity by end of 2020 Scope 2 Reduction of approx. 70% of CO 2 emissio
Slide 146: Action RE100: Emission-free Purchased Electricity
Action 1 | RE 100 100% Emission-free from Purchased Electricity Project Sept. 26, 2019 Oct. 31, 2019 Q1/20 Q2/20-Q1/21 Q1/21 › Kick off › Quality of › RE100 sign in at › Global › 100% renewable RE100 project EACs defined “World Environmental Day” sourcing process electricity sourced and approved by
Slide 147: Three-Step Approach towards Decarbonization
Action 2 | Technology Roadmap 2040 Our Three-Step Approach towards Decarbonization Reduction of CO 2 emissions Effective and sustainable avoidance of CO 2- 2020 emissions with energy efficiency measures (Scope 1&2), technology transformation, guidelines and the implementation of a clear roadmap to z
Slide 148: Relevant Player in Emission-Free Mobility
We Are Already a Relevant Player in Emission-Free Mobility 0.83 already bn € allocated ZTEV business in 2020 Key components for emission-free mobility • High-performance computer • Advanced surface materials • Drum brakes with electromechanical parking brake function • Sophisticated thermal manageme
Slide 149: Carbon Neutral for Emission-free Vehicles
Program: “Carbon Neutral for Emission-free Vehicles“ Starting in 2022, We Will Neutralize the CO2 Backpack „CO2 backpack“ „Negative CO2 emissions“: from raw materials, In the first step, emissions are production, logistics and CO2 CO2 neutralized by generating utilization at the end of negative emis
Slide 150: In a Circular Economy There is No Waste
In a Circular Economy There is No Waste – Just Material in the Wrong Place 100% closed product and resource cycles Eco rubber garden hose latest by 2050 made of sugar cane ethylene Bicycle tires Refurbished air springs made of natural rubber for urban trains in Hamburg from dandelions Recycled carbo
Slide 151: Reducing Waste
Reducing Waste We Reach Our Targets by Striving for Closed Resource Cycles The Challenges Our Approach Our Results › Globally around 90 billion tons of The Waste Hierarchy Total Waste [in kilotons] materials are used each year to fuel our economy -17% › Most of the resources follow a linear Avoid 1
Slide 152: Saving Water
Saving Water Reduction of Water Intensity Driven by Risk-Based Approach The Challenges Our Approach Our Results › Water is an existential Risk-based targets for water Water withdrawal [in million m 3] and important resource security and a global framework 30 for water programs: -11% › Water scarcity
Slide 153: Responsible Value Chains Due Diligence Cycle
Our Approach on Responsible Value Chains Follows the Due Diligence Cycle Non-Financial Statement, Sustainability Ambition, Code of Sustainability Report & Conduct & Business Partner Code internal monitoring Monitoring & Reporting Policy of Conduct Compliance Hotline Value Chain Due Diligence Griev a
Slide 154: The Sustainability Scorecard
The Sustainability Scorecard Monitors Our Performance Key Performance Indicators (Reasonable Assurance) Strategy Meeting July 2020 Public Investor Presentation, March 2021 © Continental AG 154
Slide 155: Scorecard Footnotes
The Sustainability Scorecard Frames Our Monitoring Key Performance Indicators – Footnotes 1 Definitions in accordance with the GHG Protocol. CO 2 emission factors correspond to CO 2 10 Figures for 2020 and 2019 only comparable to a limited extent due to a change in equivalents (CO 2e). definition. 2
Slide 156: Integrated TCFD Reporting
Integrated TCFD Reporting 1. Continental commits to climate protection About TCFD: The Task Force on Climate-related and has prioritized carbon neutrality as a Financial Disclosures is a market initiative to develop focus area of the sustainability ambition. voluntary, consistent climate-related fin
Slide 157: Specific TCFD Disclosures
Specific TCFD Disclosures TCFD disclosure required Core message of Continental Reference (Investor Fact Book 2020) Governance: At Continental, the Group functions for Sustainability and for Environment report 141 Disclose the organization’s governance around to Executive Board members. Executive Boa
Slide 158: Sustainability Reporting
Sustainability Is Integrated in the Annual Report and All Reporting on Sustainability Bundled in a Separate Report Download Non-financial Statement and Sustainability Report: www.continental-sustainability.com/downloads › Long history in sustainability reporting since FY 2011 › Combined non-financia
Slide 159: Memberships and Initiatives
Sustainability Memberships and Initiatives TCFD Fask Force on Climate-Related Financial Disclosure Please clickStrategy on the logos Meeting Julyfor 2020more information. Public Investor Presentation, March 2021 © Continental AG 159
Slide 160: Ratings and Indexes
Sustainability Ratings and Indexes › Continental is listed in the following indexes: DAX® 50 ESG › Ratings: › Prime (C+) (2020) › Climate: Score B (2020) › Gold Status (2020) › BBB (2021) › 13.6 low risk (2021) › Water: Score B (2020) › 69/100 › Industry Group › Supply chain: Score A; › 97 percentil
Slide 161: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 162: Business Development
Business Development Continental (€ bn) Continental excl. Powertrain Technologies 30% 44.0 44.4 44.5 Adjusted EBIT1 40.5 25% margin 39.2 37.7 33.3 34.5 32.7 30.5 20% 26.0 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mid- Mid-term Term Strategy Meeting July 2020 Sales Continen
Slide 163: Mid-term Measures
Mid-term Measures Implementation of Structural Measures on Track Targeted annual gross cost savings (€ bn) Program details › Includes footprint, structures > 1.0 and processes ~ 15% > 0.8 › Contributions from central functions and business units ~ 25% › Around 30,000 jobs Excl. Powertrain worldwide
Slide 164: Cash Outflow for Restructuring
Mid-term Measures Cash Outflow for Restructuring Predominantly in 2021-22 Restructuring costs (€ bn) Cash outflow for restructuring (€ bn) ~ 1.8 ~ 1.2 ~ 1.5 ~ 0.7 Group ThereofPT Powertrain 2021E 2022E 2023E 2024E 2025E Technologies Strategy Meeting July 2020 Booked as of Sep. 30, 2020 To be booked
Slide 165: Mid-term Growth Expectations
Mid-term Growth Expectations Top Line to Benefit From Recovering Markets and Outperformance Expected market Expected outperformance Expected development and main drivers growth Automotive › Autonomous Mobility › › Smart Mobility ~ 5 to 7% LV production 1 + ~ 2 to 4% › Architecture and Networking = ~
Slide 166: Financial Targets
Financial Targets Mid-term Adjusted EBIT1 Margin Continental Continental excl. Powertrain Technologies ~ 8% to 11% 3.5% 2020 Growth Operational performance Mid-term target › Volume recovery in all markets › Restructuring › Outperformance › Productivity Strategy Meeting July 2020 Public 1 Before amor
Slide 167: Cash Flow Development
Cash Flow Development Cash Conversion Supported by Cost Improvements Continental (€ bn) Continental excl. Powertrain Technologies Mid-term target: 2.7 Cash conversion4 2.3 2.3 2.1 > 70% 2.0 1.7 1.8 1.3 1.1 0.6 0.5 1 1 1 1 1 1 1 1 2 2 2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mid-term
Slide 168: Committed to Investment Grade Credit Profile
Committed to Investment Grade Credit Profile Continental’s mid-term targets: Continental’s current credit rating: › Rating BBB / BBB+ › Fitch (since April 20, 2020) BBB, outlook stable › Gearing ratio1 below 40% › S&P (since March 30, 2020) BBB, outlook negative › Equity ratio 2 above 30% › Moody’s
Slide 169: Dividend
Dividend Dividend per share1 (€) Payout ratio ~ 15% to ~ 30% 4.50 4.75 4.25 3.75 3.25 3.00 2.50 2.25 1.50 0 0 3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mid-term Payout n.a. 24% 24% 26% 27% 28% 30% 30% 33% n.a. n.a. ratio2 Strategy Meeting July 2020 1 Dividend paid for the respective f
Slide 170: Mid-term Targets
Mid-term Targets Automotive Rubber Continental Technologies Technologies Group1 Outperformance2 ~ +2 to +4%-pts Adjusted EBIT3 margin ~ 11% to 14% Adjusted EBIT3 margin ~ 8% to 11% AMS ~ +2 to +4%-pts Tires ~ 12% to 16% VNI ~ +2 to +4%-pts ContiTech ~ 9% to 11% Return on capital ~ 15% to 20% employe
Slide 171: Invest in a Winner of the Transformation
Summary Invest in a Winner of the Transformation Mid-term targets1 ~ 8 to 11% ~ 15 to 20% ≥ 70% Adj. EBIT2 margin Return on capital employed3 Cash conversion4 Benefit from market recovery + outperformance + cost savings Realize embedded value from technology leadership Team with “Passion to Win" and
Slide 172: Agenda
Agenda Continental Group Sector Automotive Technologies Business Area Autonomous Mobility and Safety Business Area Vehicle Networking and Information Group Sector Rubber Technologies Business Area Tires Business Area ContiTech Corporate Governance Sustainability Financials Back-up Strategy Meeting J
Slide 173: Key Figures: Continental Group
Key Figures Continental Group 2018 2019 2020 Continental Group (€ mn) % of sales % of sales % of sales Sales 44,404.4 - 44,478.4 - 37,722.3 - EBITDA 6,235.7 14.0 4,977.2 11.2 3,033.8 8.0 EBIT 4,027.7 9.1 -268.3 -0.6 -718.1 -1.9 Operating assets (average) 23,640.5 - 26,178.5 - 22,536.6 - Research and
Slide 174: Key Figures: Automotive Technologies
Key Figures Group Sector Automotive Technologies 2019 2020 Automotive Technologies (€ mn) % of sales % of sales Sales 18,904.7 - 15,316.9 - EBITDA 1,727.7 9.1 498.3 3.3 EBIT -1,445.6 -7.6 -1,440.6 -9.4 Operating assets (average) 10,920.1 - 8,859.0 - Research and development expenses (net) 2,237.9 11
Slide 175: Key Figures: Autonomous Mobility and Safety
Key Figures Business Area Autonomous Mobility and Safety 2019 2020 Autonomous Mobility and Safety (€ mn) % of sales % of sales Sales 9,381.6 - 7,529.2 - EBITDA 1,145.3 12.2 472.9 6.3 EBIT -120.3 -1.3 -97.7 -1.3 Operating assets (average) 5,159.9 - 4,658.8 - Research and development expenses (net) 1,
Slide 176: Key Figures: Vehicle Networking and Information
Key Figures Business Area Vehicle Networking and Information 2019 2020 Vehicle Networking and Information (€ mn) % of sales % of sales Sales 9,595.5 - 7,856.1 - EBITDA 582.4 6.1 26.2 0.3 EBIT -1,325.3 -13.8 -1,342.5 -17.1 Operating assets (average) 5,760.2 - 4,203.4 - Research and development expens
Slide 177: Key Figures: Rubber Technologies
Key Figures Group Sector Rubber Technologies 2019 2020 Rubber Technologies (€ mn) % of sales % of sales Sales 18,012.9 - 15,639.5 - EBITDA 3,168.2 17.6 2,493.6 15.9 EBIT 1,957.5 10.9 1,266.4 8.1 Operating assets (average) 11,317.3 - 10,361.9 - Research and development expenses (net) 462.1 2.6 417.7
Slide 178: Key Figures: Tires
Key Figures Business Area Tires 2019 2020 Tires (€ mn) % of sales % of sales Sales 11,728.0 - 10,158.6 - EBITDA 2,497.7 21.3 1,864.9 18.4 EBIT 1,651.6 14.1 1,012.3 10.0 Operating assets (average) 7,797.5 - 7,080.7 - Research and development expenses (net) 299.4 2.6 268.0 2.6 CapEx 1 926.2 7.9 535.5
Slide 179: Key Figures: ContiTech
Key Figures Business Area ContiTech 2019 2020 ContiTech (€ mn) % of sales % of sales Sales 6,401.5 - 5,578.6 - EBITDA 670.5 10.5 628.7 11.3 EBIT 305.9 4.8 254.1 4.6 Operating assets (average) 3,519.8 - 3,281.2 - Research and development expenses (net) 162.8 2.5 149.7 2.7 CapEx 1 261.7 4.1 To-do 179.
Slide 180: Key Figures: Powertrain Technologies
Key Figures Group Sector Powertrain Technologies 2019 2020 Powertrain Technologies (€ mn) % of sales % of sales Sales 7,802.3 - 6,967.7 - EBITDA 192.5 2.5 122.5 1.8 EBIT -662.1 -8.5 -450.8 -6.5 Operating assets (average) 3,906.3 - 3,191.5 - Research and development expenses (net) 664.1 8.5 670.5 9.6
Slide 181: Vitesco Technologies Ready for Independence
Powertrain Technologies Vitesco Technologies Ready for Independence Well positioned in electrification Current status of spin-off › Full-range supplier for all electrification types: from Legal carve-out battery management to electric drive systems › Sales share of electrification technology doubled
Slide 182: Continental Shares and ADRs
Continental Shares and ADRs Share Data / American Depositary Receipt (ADR) Data Share Data ADR Data Type of share No-par value share Ratio 1:10 (ordinary share : ADRs)1 Bloomberg Ticker CON Bloomberg Ticker CTTAY Reuters Ticker CONG Reuters Ticker CTTAY.PK German Security Identification Number (WKN)
Slide 183: Shareholder Structure / Free Float by Region
Continental Shares Shareholder Structure / Free Float by Region Unidentified Asia, 9.3% Free Australia and Float Africa UK and 54.0% 3.6% Ireland 29.7% Shareholder structure Shareholder structure of the free float December 2020 December 2020 (90.7% identified) USA and Germany IHO-Group Canada 9.3% 4
Slide 184: Investor Relations Contact
Investor Relations Contact Vahrenw alder Str. 9 e-mail: ir@conti.de 30165 Hanover Fax: +49 511 938-1080 Germany w ww.continental-ir.com Bernard Wang Phone: +49 511 938-1068 Michael Saem ann Phone: +49 511 938-1307 Head of IR e-mail: bernard.w ang@conti.de Analysts, Institutional Investors and e-mail
Slide 185: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft based on the Capital Market Days in December 2020, and the full year results 2020. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any
Slide 186: The Future in Motion
Ontinentals. The Future in Motion