Slide 1: H1 2021 Results
H1 2021 Results Hanover – August 5, 2021 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Wolfgang Schaefer – CFO
Slide 2: Agenda
Agenda Current Situation 3 Business Highlights 4 Group Highlights 7 Automotive Technologies 9 Rubber Technologies 11 Powertrain Technologies 13 Cash Flow 14 8 2021 Outlook 15 Back-up and Fact Sheets 2020 – H1 2021 19 Space for Sender Information H1 2021 Results – August 5, 2021 Confidential © Invest
Slide 3: Q2 Update – Current Priorities
1 | Current Situation Q2 Update – Current Priorities Review Q2 2021 Current priorities Group Operational topics › (+) Solid Y-o-Y operating leverage1 of 39% supported by business › Semiconductor-related constraints and uncertainties will remain significant recovery, cost discipline and restructuring
Slide 4: Automotive – Full Business and Innovation Pipeline for User Experience
2 | Business Highlights Automotive – Full Business and Innovation Pipeline for User Experience LAUNCHED UPCOMING SOP SOP SOP 2021 2021/22 2021 MB C/S-Class SOP SOP 2021 2021 L-Shape Display C-Shape Display + Cockpit HPC + Cockpit HPC V-Shape Display SOP 2021 + Cockpit HPC Hyundai Genesis SOP ~ €5 bn
Slide 5: Tires – From First Mover to Broadly Positioned Leader in EV Tires
2 | Business Highlights Tires – From First Mover to Broadly Positioned Leader in EV Tires Present on many of the world’s most popular EV brands and models PREMIUM / SPORT TESLA BMW JAGUAR MERCEDES PORSCHE FORD Model S i3 I-Pace EQC Taycan Mustang Mach-E 2012 2013 ........ 2018 2019 2020 2021 VOLUME
Slide 6: Powertrain – 4th Generation E-Axle Cements Technology Leadership
2 | Business Highlights Powertrain – 4th Generation E-Axle Cements Technology Leadership EMR3 EMR4 Customer > 200k units acquisitions shipped1 in progress Power range 120 - 150 kW Scalable flexibility 80 - 230 kW Weight 76kg More compact 45 - 80kg Efficiency Among best in class Higher efficiency Up
Slide 7: Most Important KPIs for Q2 2021
3 | Group Highlights Most Important KPIs for Q2 2021 Q2 2020 Q2 2021 Change Comments Sales €6.6 bn €9.9 bn +49.7% Organic growth 55.3%; FX -€173 mn Adjusted EBIT1 -€635 mn €711 mn5 +€1,345 mn Excluding IFRS 5 effect: Q2/21 €588 mn Adjusted EBIT1 margin -9.8% 7.2%5 +1,700 bps Excluding IFRS 5 effect:
Slide 8: Q2 2021 – Sales and Earnings Performance
3 | Group Highlights Q2 2021 – Sales and Earnings Performance Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Rubber Powertrain Automotive Rubber Powertrain Technologies Technologies Technologies Technologies Technologies Technologies +50.4% +57.4% 14.6% 4,349 637 9.5%3 3,783 3.5% 1.2% 2,962 174 +63.5
Slide 9: Q2 2021 – Autonomous Mobility and Safety
4 | Automotive Technologies Q2 2021 – Autonomous Mobility and Safety Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +62.9% › Impact from FX: -3.7% 1,847 › Semiconductor shortage felt in all product areas, especially ADAS and electronic brake systems › Regional impact most significant among European and No
Slide 10: Q2 2021 – Vehicle Networking and Information
4 | Automotive Technologies Q2 2021 – Vehicle Networking and Information Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +52.9% › Impact from FX: -0.3% 1,961 › Semiconductor shortage felt in all product areas, especially Connected Car Networking › Regional impact most significant among European and North A
Slide 11: Q2 2021 – Tires
5 | Rubber Technologies Q2 2021 – Tires Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +55.0% › Impact from FX: -4.0% 2,888 › Volume: +43.0% › Strong growth from EMEA and Americas replacement markets in both PLT and Truck › OE volumes up Y-o-Y, but down sequentially 1,912 515 17.8% › Price/mix: +12.0% › C
Slide 12: Q2 2021 – ContiTech
5 | Rubber Technologies Q2 2021 – ContiTech Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +43.1% 1,491 › Impact from FX: -2.5% › OE: Lower sequential volumes due to semiconductor shortage › Industrial and Aftermarket: stable demand 1,064 overall, while Surface Solutions and Power Transmission grew resili
Slide 13: Q2 2021 – Powertrain
6 | Powertrain Technologies Q2 2021 – Powertrain Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +63.5% › Impact from FX: -1.9% 1,828 › Y-o-Y growth aided by tripling of sales in Electrification Technology to €152 mn › Semiconductor supply constraints led to sequential sales drop of 8.5% 1,131 Adjusted EBI
Slide 14: Free Cash Flow Driven by Higher EBIT and Low Level of Capex
7 | Cash Flow Free Cash Flow Driven by Higher EBIT and Low Level of Capex Cash Flow Q2 2021 (€ mn) Operating Investing Free cash flow before Operating Cash Flow Carve-out effects Acquisitions and divestments acquisitions, divestments, › Y-o-Y improvement supported by volume and carve-out effects rec
Slide 15: Expectations for Market Development Updated
8 | 2021 Outlook Expectations for Market Development Updated Vehicle Production Replacement Tires Passenger Cars Commercial Passenger Cars Commercial & Light Trucks Vehicles & Light Trucks Vehicles Q2 2021 2021E Q2 2021 2021E Q2 2021 2021E Q2 2021 2021E Europe ~ 90% 7% to 9% ~ 90% 23% to 26% ~ 42% 8
Slide 16: Continental Group (Continuing Operations Only)
8 | 2021 Outlook Continental Group (Continuing Operations Only) 2021E Consolidated sales Around €33.5 bn – €34.5 bn Adj. EBIT1 margin Around 6.5% – 7.0% Automotive Technologies sales Around €16 bn – €16.5 bn Adj. EBIT1 margin Around 0.5% – 1.0% Rubber Technologies sales Around €17.2 bn – €17.8 bn Ad
Slide 17: Space for Sender Information Confidential
Space for Sender Information Confidential
Slide 18: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on August 5, 2021, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recom
Slide 19: Back-up
Back-up Space for Sender Information H1 2021 Results – August 5, 2021 Confidential © Investor Relations Continental AG 19
Slide 20: Regional Production vs. Sales Growth by Group Sectors in Q2 2021
Back-up Regional Production vs. Sales Growth by Group Sectors in Q2 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 140 140 140 140 120 120 120 120 100 100 100 100 ~-16%-pts ~-2%-pts 80 80 80 80 60 60 60 60 40 40 40 40 20 20 20 20 0 0 0 0 -20 -20 -20
Slide 21: Regional Production vs. Sales Growth by Group Sectors in H1 2021
Back-up Regional Production vs. Sales Growth by Group Sectors in H1 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 40 40 30 40 ~+3%-pts 35 35 25 35 ~-6%-pts 30 30 30 20 25 25 25 20 20 15 20 15 15 10 15 10 10 10 5 5 5 5 0 0 0 0 -5 -5 -5 -5 Europe: sh
Slide 22: Key Historical Credit Metrics
Back-up Key Historical Credit Metrics (€ mn)1 2017 2018 2019 5 2020 LTM Statement of Cash Flows Adjusted EBITDA 6,701 6,190 5,837 4,030 5,606 Reported EBITDA 6,679 6,236 4,977 3,034 4,587 Net cash interest paid -105 -91 -83 -137 -145 Tax paid -1,122 -848 -866 -886 -941 Change in net working capital2
Slide 23: Capex, Depreciation and Earnings per Share – Breakdown for Q2 2021
Back-up Capex, Depreciation and Earnings per Share – Breakdown for Q2 2021 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 0.14 674 545 448 453 6.8% 4.6% 2.72 2.86 1 47 39 Reported EPS PPA per EPS excl. 2 share after tax PPA1,2 2020 2021 ■ Capex (PPE), percentage of sales | ■ Depreciation,
Slide 24: Liquidity – Financial Position Remains Solid
Back-up Liquidity – Financial Position Remains Solid Liquidity and bond maturities2 (€ mn) Credit Lines Total liquidity available Bond maturities1 › Short-term credit line of €3 bn expired in May 10,144 2021 and was not renewed › Availability of the credit facilities is not subject to financial cove
Slide 25: Relevant Bonds
Back-up Relevant Bonds Continental AG Conti-Gummi Finance Conti-Gummi Finance Continental AG Continental AG Issuer B.V., Netherlands 1 B.V., Netherlands 1 Issue Senior Notes Principal €500 mn €750 mn €625 mn €600 mn €750 mn amount Offering price 99.804% 99.559% 99.589% 99.802% 98.791% Rating Baa1 (M
Slide 26: Continental's Credit Rating
Back-up Continental’s Credit Rating S&P, Fitch / Moody’s BBB+ / Baa1 Investment grade BBB / Baa2 BBB- / Baa3 BB+ / Ba1 Non-investment BB / Ba2 grade Before BB- / Ba3 Siemens VDO B+ / B1 B / B2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2 3 Standard & Poor’s1 Mood
Slide 27: Fact Sheets 2020 – H1 2021
Fact Sheets 2020 – H1 2021 Space for Sender Information H1 2021 Results – August 5, 2021 Confidential © Investor Relations Continental AG 27
Slide 28: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter Sales Adjusted EBIT1 2020 2021 2020 2021 Sales (€ mn) Adj. EBIT¹ (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Autonomous Mobility and Safety 2,060.3 1,256.2 1,987.0 2,225.7 7,529.2 2,035.3 1,846.9 Autonomous Mobility and S
Slide 29: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter EBITDA EBIT 2020 2021 2020 2021 (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Autonomous Mobility and Safety 151.3 -61.6 168.0 215.2 472.9 217.8 90.1 11.8 -193.9 45.8 38.6 -97.7 83.1 -37.5 Vehicle Networking and Information 276.3 -2
Slide 30: Reported and Adjusted H1 2021 Results
Fact Sheets Reported and Adjusted H1 2021 Results Autonomous Mobility Vehicle Networking (€ mn) Tires ContiTech Powertrain Cons. / Corr. Group and Safety and Information 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Sales 3,316.5 3,882.2 3,449.6 4,041.3 4,395.7 5,631.1 2,584.
Slide 31: Useful Links to Continental Websites
References Useful Links to Continental Websites Investor Relations www.continental-ir.com Reports and Investor Presentation (Fact Book) Reports Latest Presentations Presentations Events Events Sustainability Sustainabilty 2020 Integrated Sustainability Report 2020 Integrated Sustainabilty Report Cor
Slide 32: Continental Financial Calendar
Continental Financial Calendar 2021 Annual Financial Press Conference March 9, 2021 Annual Shareholders´ Meeting April 29, 2021 Q1 Quarterly Statement May 6, 2021 Half-Year Financial Report August 5, 2021 Nine-Month Quarterly Statement November 10, 2021 Capital Market Days (Vitesco Technologies) Mar
Slide 33: Equity and Debt Markets Relations
Contact Equity and Debt Markets Relations Vahrenwalder Str. 9 e-mail: ir@conti.de 30165 Hanover Fax: +49 511 938-1080 Germany www.continental-ir.com Bernard Wang Phone: +49 511 938-1068 Michael Saemann Phone: +49 511 938-1307 Head of IR e-mail: bernard.wang@conti.de Analysts, Institutional Investors