Continental Ag · XETR:CON
Continental — Investor Day (December 2020)
16 slides from Continental's investor day presentation, Dec 16, 2020
Slide 1: Capital Market Days 2020 CFO Presentation
Bitte decken Sie die schraffierte Fläche mit einem Bild ab. Please cover the shaded area with a picture. (24,4 x 7,6 cm) Capital Market Days 2020 CFO Presentation Ticker: CON ADR-Ticker: CTTAY Wolfgang Schäfer, CFO Continental AG http://www.continental-ir.com December 16, 2020
Slide 2: 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 37.5 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 2020E Mid- Mid-term Term Sales Continental excl. Powertrain Techn
Slide 3: Outlook: Continental Group 2020
Outlook: Continental Group 2020 2019 2020E Consolidated sales €44.5 bn Around €37.5 bn Adj. EBIT1 margin 7.4% Around 3.5% Automotive sales €26.5 bn Around €22.0 bn Adj. EBIT1 margin 4.4% Around -1.5% Rubber sales €18.0 bn Around €15.5 bn Adj. EBIT1 margin 12.4% Above 11.0% Raw materials cost impact
Slide 4: Powertrain Technologies: 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 5: Short-term Measures: Sharp Adjustments in Costs and Capital Expenditures
Short-term Measures Sharp Adjustments in Costs and Capital Expenditures Fixed costs (€ bn) Capital expenditures (€ bn) excl. depreciation and amortization > 6% > 30% 11.2 3.3 Reduction Reduction 3.1 11.1 ~ 2.3 ~ 10.5 2018 2019 2020E 2018 2019 2020E Capital Market Days 2020 – CFO Wolfgang Schäfer © C
Slide 6: Mid-term Measures: Implementation of Structural Measures On Track
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 7: Mid-term Measures: Cash Outflow for Restructuring Predominantly in 2021-22
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 Booked as of Sep. 30, 2020 To be booked Continental excl. Powertrai
Slide 8: 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 › LV production1 › Smart Mobility ~ 5 to 7% + ~ 2 to 4% › Architecture and Networking = ~
Slide 9: Financial Targets: Mid-term Adjusted EBIT Margin
Financial Targets Mid-term Adjusted EBIT1 Margin Continental Continental excl. Powertrain Technologies ~ 8% to 11% ~ 3.5% 2020E Growth Operational performance Mid-term target › Volume recovery in all markets › Restructuring › Outperformance › Productivity 1 Before amortization of intangible assets f
Slide 10: 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 0.6 0.5 > 0.5 1 1 1 1 1 1 1 1 2 2 2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Mid-te
Slide 11: 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 ratio2 above 30% › Moody’s (
Slide 12: 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 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mid-term Payout n.a. 24% 24% 26% 27% 28% 30% 30% 33% n.a. ratio2 1 Dividend paid for the respective fiscal year, payout in the subsequent year 2
Slide 13: 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 14: Summary: 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 15: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection for the Capital Market Days in December 2020, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recommendatio
Slide 16: Capital Market Days 2020 – CFO
Capital Market Days 2020 – CFO Wolfgang Schäfer © Continental AG December 16, 2020 16