Slide 1: FY 2023 Results
FY 2023 Results Hanover – March 7, 2024 Ticker: CON ADR-Ticker: CTTAY Nikolai Setzer – CEO http://www.continental-ir.com Katja Garcia Vila – CFO
Slide 2: Agenda
Agenda 1 Group Highlights 2 Automotive 3 Tires 4 ContiTech 5 Cash Flow 6 2024 Outlook Back-up and Fact Sheets 2022 – 2023 FY 2023 Results © Continental AG Public March 7, 2024 2 Internal
Slide 3: Most Important KPIs for FY 2023
1 | Group Highlights Most Important KPIs for FY 2023 FY 2022 FY 2023 Executive Summary Sales €39.4 bn €41.4 bn Adjusted EBIT1 €1,913 mn €2,517 mn › Updated strategy and defined measures for increasing profitability Adjusted EBIT1 margin 4.9% 6.1% PPA2 -€150 mn -€118 mn › Organic growth 6.9% on the b
Slide 4: The Beginning of our Era of Execution – Focus 2024
1 | Group Highlights The Beginning of our Era of Execution – Focus 2024 Automotive Tires ContiTech › Drive portfolio measures in › Electrification, digital › Market outperformance in a dynamic environment services and UHP growth key industrial fields › Fixed-cost reduction › Continued investment to
Slide 5: Proposed Dividend Reflects Commitment to Updated Dividend Policy
1 | Group Highlights Proposed Dividend Reflects Commitment to 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 3 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Payout ratio2 not 27%
Slide 6: Q4 2023 – Sales and Adjusted EBIT
1 | Group Highlights Q4 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing 8.4% 5,118 1.3% 4,819 3,703 13.6% 3,607 10.3% -0.7% 4.7% 491 378 7.3% 1,682 1,658 1.9% 242 2.5% 0.9% -18.4% 11
Slide 7: Automotive Q4 2023 – Sales and Adjusted EBIT
2 | Automotive Q4 2023 – Sales and Adjusted EBIT Sales1, 2 (€ mn) Adjusted EBIT3 (€ mn) Sales +8.4% 5,118 › Sales impact from FX: -2.2% 4,819 SMY dissolution AM +10.7% 577 2024 › Limited additional pricing effects in Q4 544 993 › Organic growth mainly driven by strong volume AN 4.7% 945 +7.3% develo
Slide 8: Regional Production vs. Sales Growth in Q4 23
2 | Automotive Regional Production vs. Sales Growth in Q4 2023 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 21% 11% ~ +0%pts 11% 8% 8% 7% 6% 2% Europe: share of sales1 North America: share of sales1 China: share of sales1 PC< production weighted Q4 2
Slide 9: Regional Production vs. Sales Growth in FY 23
2 | Automotive Regional Production vs. Sales Growth in FY 2023 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 18% ~ +2%pts 13% 12% 10% 10% 10% 5% 4% Europe: share of sales1 North America: share of sales1 China: share of sales1 PC< production weighted F
Slide 10: Q4 2023 – Order Intake of €7.3 bn Lifetime Sales
2 | Automotive Q4 2023 – Order Intake of €7.3 bn Lifetime Sales Order Intake Q4 20231 (€ bn) Highlights Safety and Motion: €3.4 bn › Latest generation of brake systems › Integrated safety, sensors and hydraulic brake systems 1.1 1.0 User Experience: €1.1 bn 0.6 1.2 › Multi-display solutions › Head-u
Slide 11: Tires Q4 2023 – Sales and Adjusted EBIT
3 | Tires Q4 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -3.2% +1.3% 3,703 3,607 13.6% › Volumes: 1.7%, supported by short-term 491 demand in the replacement market 10.3% › Price/mix: -1.1%, negative effect from cost 378 indexation; low demand in truck t
Slide 12: ContiTech Q4 2023 – Sales and Adjusted EBIT
4 | ContiTech Q4 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -2.4% 1,682 -0.7% 7.3% › Positive effects from pricing in OE business 1,658 119 › Industry volumes continued to be weak, selective approach to OE business 2.5% 42 Adjusted EBIT1 › Positively im
Slide 13: Adjusted Free Cash Flow Significantly Improved
5 | Cash Flow Adjusted Free Cash Flow Significantly Improved Cash Flow FY 2023 (€ mn) Operating Investing1 Adjusted Free Cash Flow1 Operating Cash Flow › Supported by operational result › Benefits from continuous improvements in inventory 3,328 2,295 200 1,292 -2,035 Investing Cash Flow1 -2,096 › Ca
Slide 14: 2024 Outlook – Main Markets
6 | 2024 Outlook – Main Markets Vehicle Production Replacement Tires1 Industrial Production Passenger Cars & Light Trucks 2023 2024E 2023 2024E 2023 2024E Europe +13% -3% to -1% -4% 0% to +3% Eurozone -2.6% -2% to 0% North America +10% 0% to +2% 0% 0% to +3% USA +0.2% -1% to +1% China +10% +1% to +3
Slide 15: 2024 Outlook
6 | 2024 Outlook 2024E Continental Group consolidated sales Around €41.0 bn – €44.0 bn Adj. EBIT1 margin Around 6.0% – 7.0% Automotive sales Around €20.0 bn – €22.0 bn Adj. EBIT1 margin Around 3.0% – 4.0% Tires sales Around €14.0 bn – €15.0 bn Adj. EBIT1 margin Around 13.0% – 14.0% ContiTech sales A
Slide 16: 2024 Outlook Automotive – Sales and Adjusted EBIT
6 | 2024 Outlook Automotive – Sales and Adjusted EBIT Sales1(€ bn) Adjusted EBIT1, 2 (€ mn) Around Around 3.0% - 4.0% 20.3 20.0 – 22.0 1.9% 388 2023 Volume Out- 2024E 2023 Volume Operating Operational Fixed-cost 2024E performance leverage excellence reduction › Content per vehicle › Operating levera
Slide 17: 2024 Outlook Tires – Sales and Adjusted EBIT
6 | 2024 Outlook Tires – Sales and Adjusted EBIT Sales1(€ bn) Adjusted EBIT1, 2 (€ mn) Around 14.0 14.0 – 15.0 13.5% Around 13.0% - 14.0% 1,887 2023 Volume Price/Mix 2024E 2023 Volume Price/Mix vs. Labor Inflation 2024E Cost (ex. labor) › Moderate increase in RE PLT in all core markets › Moderate in
Slide 18: 2024 Outlook ContiTech – Sales and Adjusted EBIT
6 | 2024 Outlook ContiTech – Sales and Adjusted EBIT Sales1 (€ bn) Adjusted EBIT1, 2 (€ mn) Around 6.7% 6.5% - 7.5% Around 6.8 6.6 – 7.0 448 2023 Volume Self-Help 2024E 2023 Volume Industry Automotive 2024E › Flat global light vehicle production › Improvements in business profitability through stric
Slide 19: 2024 Outlook Adjusted Free Cash Flow
6 | 2024 Outlook Adjusted Free Cash Flow1, 2 (€ bn) 1.3 Around 0.7 – 1.1 2023 Operating CF Investing CF Extraordinary Effects 2024E 1 Not to scale. Illustration purposes only. 2 Before acquisitions and divestments. E = Expectations. FY 2023 Results © Continental AG Public March 7, 2024 19 Internal
Slide 20: 2024 Outlook Adjusted Free Cash Flow – Extraordinary Effects
6 | 2024 Outlook Adjusted Free Cash Flow1, 2 (€ bn) Extraordinary Effects (extract) Free Cash Flow Effect (FY24) Re-purchase ContiTech AG shares ~ €500 mn booked 2022 Restructuring ~ €300 mn (Auto + ContiTech) Carve-outs ~ €200 mn (Auto + ContiTech) 1 Not to scale. Illustration purposes only. 2 Befo
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Slide 22: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on March 7, 2024, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recomm
Slide 23: Back-up
Back-up FY 2023 Results © Continental AG Public March 7, 2024 23 Internal
Slide 24: Capex, Depreciation and Earnings per Share – FY 2023
Back-up Capex, Depreciation and Earnings per Share – FY 2023 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1, 2 (€) 3,062 0.43 2,426 2,437 2,107 5.78 6.21 6.2% 5.9% 150 118 1 1, 2 FY 2022 FY 2023 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sales |
Slide 25: Relevant Bonds
Back-up Relevant Bonds Conti-Gummi Finance Issuer Continental AG Continental AG Continental AG Continental AG Continental AG B.V., Netherlands1 Issue Senior Notes Principal €625 mn €600 mn €750 mn €500 mn €625 mn €750 mn amount Offering price 99.589% 99.802% 98.791% 99.658% 100.000% 99.445% Baa2 (Mo
Slide 26: Investment Grade Credit Profile
Back-up Investment Grade Credit Profile Leverage ratio1 Gearing ratio2, 3 Equity ratio3 1.12 0.95 0.88 33% 30% 29% 36% 36% 37% FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Continental’s current credit rating is: Continental’s targets: › Fitch (since April 20, 2020): BBB, o
Slide 27: Fact Sheets 2022 – FY 2023
Fact Sheets 2022 – FY 2023 FY 2023 Results © Continental AG Public March 7, 2024 27 Internal
Slide 28: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter 2022 2023 2022 2023 Sales in Mill. EUR adj. EBIT¹ in Mill. EUR Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 4,246.0 4,315.1 4,941.3 4,819.3 18,321.6 5,015.2 5,132.9 5,029.2 5,118.1 20,295.4 Automotive -172.6 -107.0 123
Slide 29: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter 2022 2023 2022 2023 EBITDA in Mill. EUR EBIT in Mill. EUR Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 60.1 127.9 331.7 442.8 962.5 269.3 218.1 251.3 243.3 982.1 Automotive -204.3 -509.9 -426.2 170.4 -970.1 15.6 -39.5 -2.6 -31.
Slide 30: Reported and Adjusted FY 2023 Results
Fact Sheets Reported and Adjusted FY 2023 Results 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects. FY 2023 Results © Continental AG Public March 7, 2024 30 Internal
Slide 31: Financial Calendar and Upcoming Investor Meetings
Continental Financial Calendar and Upcoming Investor Meetings 2024 Upcoming Roadshows and Conferences Q1 Full Year Results March 7, 2024 › FY 2023 Roadshow (CFO) Annual Shareholders’ Meeting April 26, 2024 › March 7-11 , virtual › BNP Paribas Exane Auto Conference Q1 Quarterly Statement May 8, 2024
Slide 32: References
References Useful Links to Continental Websites Investor Relations Investor Relations Capital Market Day 2023 Capital Market Day 2023 Latest Presentations Presentations Events Events Sustainability Sustainability 2022 Integrated Sustainability Report 2022 Integrated Sustainability Report Corporate G
Slide 33: Contact
Contact Investor Relations Continental-Plaza 1 e-mail: ir@conti.de 30175 Hanover fax: +49 511 938 1080 Rachel Arellano phone: +49 511 938 10478 Germany www.continental-ir.com Director - Investor Relations e-mail: rachel.arellano@continental.com Andrea Kraft phone: +49 511 938 1880 Analysts and Insti