Continental Ag · XETR:CON
Continental — Investor Day (December 2023)
23 slides from Continental's investor day presentation, Dec 4, 2023
Slide 1: Capital Market Day 2023
2023 CapitalMarketDay
Slide 2: Tires at a Glance
Tires ata Glance High share of RE business on the back Regional balance with significant growth ~€1 4- 1 5 of a strong OE business opportunities in Americas and APAC billion OF insales 759% Americas 35% ~56,900 employees Replacement 75% APAC 14% Tires are our passion. We outperform the industry with
Slide 3: Resilience in Crises
Resilience in Crises 2018 2019 2020 STOXX Europe 600 Automobile & Parts [Ml Sales [lll EBIT adj Delivering profitable growth despite all headwinds
Slide 4: Financial Highlights
Financial Highlights Sales growth ROCE? A/® >20% in each of the last 10 years® Adj. EBIT2 Cash generation* Al ~€1.7bn t@r ~67% on average (2018-2023e) on average (2018-2023e) Best-in-class value creation and cash generation hs FR: Ge mpo ual gre pauing all 2B tangibles from PPA, changes in the scope
Slide 5: While the Industry Continues to Transform...
While the Industry Continues to Transform... Re Volatile macro environment > Customers seek greater collaboration Geopolitical conflicts and - : 3 > OEMs require superior technical expertise trade barriers 4 > Shift to higher rim sizes > Greater importance of brand trust and tire performance > Ever
Slide 6: 2024+ Era of Execution
2024+ Era of Execution OUR CORE OUR OPPORTUNITY Our customers’ ambitions are our driving force OUR RESPONSIBILITY OUR TEAM
Slide 7: Our Core
OUR COR
Slide 8: CORE Industry-Leading Operational Excellence
CORE Industry-Leading Operational Excellence ~80% ~75% <8 Capacity in mega Best-cost Customer satisfaction plants (>100kt p.a.)" locations! (measured in OE ppm)? Operational excellence is the foundation of our financial performance 1 As of 2023e, in tonnage (total tires). 2 ppm - parts per million,
Slide 9: CORE Major Benefits of Electrification
CORE Major Benefits of Electrification Accelerating opportunities from EVs Driven by our strong OE market position > BEV characteristics drive higher Continental BEV agemanc HP tires homologations u (total) 500+ > OE favor premium tires meeting quality and technology requirements. 100 > “OE to repla
Slide 10: CORE Boosting Our Mix Through UHP Growth
CORE Boosting Our Mix Through UHP' Growth Our exceptional product line-up translates into ..an increasing share of our ultra-high-performance tires UHP share growth for Continental branded tires (PLT2) 57% -* DESIGN AWARD reddot winner 2022 mmm UHP share of PLT sales UHP share of PLT units = tq ‘SuT
Slide 11: 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 & AM regions “D el ~€1.6 bn invested in APAC/AM plants! Plant expansions > Hefei (China) ® ~ ly > Rayong (Thailand) > C
Slide 12: CORE Manufacturing Footprint
CORE Manufacturing Footprint AMERICAS Production plants! Tonnage? (CAGR3 in %) 2023e 2028e 2023e 2028e stimated production tonnage (in k ton for all tires). 3 CAGR: Compound annual growth rate
Slide 13: Our Responsibility
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Slide 14: RESPONSIBILITY Ambitious Sustainability Roadmap as Key Differentiator
RESPONSIBILITY Ambitious Sustainability Roadmap as Key Differentiator Example: Industry benchmark 2022 - Operations! Energy Intensity Renewable Electricity Mix Water Intensity CO, Emissions Intensity Re Ec 9 0, 0, 0, -22% 100% my -50% -60% Energy usage per output (GJ/t) Share of renewables in Water
Slide 15: RESPONSIBILITY Business Opportunities Arising From Sustainability
RESPONSIBILITY Business Opportunities Arising From Sustainability UltraContact NXT Conti EcoPlus HT3+ Sustainable tire innovations Retreading & renewing Circular solutions » Sustainability advantage Customer benefits > Business opportunities Innovation leader in a dynamic environment
Slide 16: Our Opportunity
OUR OPPORTUNITY
Slide 17: OPPORTUNITY Gaining Traction in Profit Pools
OPPORTUNITY Gaining Traction in Profit Pools > Electrification and UHP growth propelling favorable mix development > > Significant regional growth opportunities in APAC and Americas Sustainability as key differentiator through premium positioning and technology expertise Our CORE and our RESPONSIBIL
Slide 18: OPPORTUNITY Integrated Solutions for Fleets
OPPORTUNITY Integrated Solutions for Fleets In-house automotive expertise as unique differentiator in tires industry Growing our data-driven services Holistic data-driven fleet management solutions for commercial customers Electronics & sensors portfolio Fleet management solutions Ld Remote vehicle
Slide 19: Tires Financial Outlook - Updated Mid-term Targets
Tires Financial Outlook - Updated Mid-term Targets ~€17-18 bn -@ ~€15-16 bn ~€14-15 bn a Sales en Cost management Price/Mix vs. Volume/ RawMat Efficiency Adj. EBIT" (%) 2023e Short-term 1 Before amortization of intangibles from PPA, changes in the scope of consolidation (only 2023e), and special eff
Slide 20: Tires Mid-term Financial Outlook
Tires Mid-term Financial Outlook Sales ROCE2 A/ ~€17-18 bn %4/© >23% “——— Adj. EBIT’ margin Cash generation? Ail ~13-16% t®©i >60% We will continue to outperform in value creation and cash generation pe of consolidation (only 2023e), and special effects, 2 Ratio of EBIT to average operating assets f
Slide 21: 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 reliabl
Slide 22: Disclaimer Capital Market Day 2023
Disclaimer Capital Market Day 2023 This presentation has been prepared by Continental Aktiengesellschaft solely in connection for the Capital Market Day on December 4, 2023, and the subsequent analyst and investor meetings . It has not been independently verified. This presentation as well as remark
Slide 23: Continental - The Future in Motion
@ntinentals. The Future in Motion