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 Tires
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 Tires Ticker: CON ADR-Ticker: CTTAY Christian Kötz, Member of the Executive Board http://www.continental-ir.com December 16, 2020
Slide 2: A Decade of Outstanding Profitable Growth – And There Is More to Come
Tires A Decade of Outstanding Profitable Growth – And There Is More to Come Key Achievements Business Split 2019 2009 2019 By Customer Segment By Region Americas €5.8 billion €11.7 billion Replacement 31% Sales Team 74% APAC 13% 31% 44% outside Sales outside EMEA balance EMEA EMEA OE 56% 26% €0.8 bi
Slide 3: Outstanding Growth Slowed Down While Costs Continued to Rise
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 ~ 10 bn 9 Main drivers: 8 Raw materials and FX Fixed costs (incl. D&A)
Slide 4: Operational Agility: Short- and Mid-term Measures to Support Profitability and Cash Flow
Operational Agility Short- and Mid-term Measures to Support Profitability and Cash Flow Short-term Mid-term Fixed Costs Capex Fixed Costs Fixed Costs (absolute) › Fast and flexible -0.5% p.a. › Improved capacity Fixed costs / sales production adjustment utilization -8% -40% esp. in Q2 › Increase bes
Slide 5: Vision 2030: Focus on Differentiation, Growth and Operational Excellence
Vision 2030 Focus on Differentiation, Growth and Operational Excellence Differentiation / Excellence / Growth Efficiency Space for Sender Information Confidential Capital Market Days 2020 – Tires Christian Kötz © Continental AG December 16, 2020 5
Slide 6: Vision 2030
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 first. OU
Slide 7: Strategically Enhancing Our Successful Business Model
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 portfo
Slide 8: We Stand for Industry-leading Operational Excellence
Our Core 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 1 Expected by 2022. As of 2019 ~80% mega plant and ~70% in best-cost share and
Slide 9: Continuing to Grow, Diversify and Improve Our Global Sales Portfolio
Our Core Continuing to Grow, Diversify and Improve Our Global Sales Portfolio Passenger & Light Truck Tires1 Truck Tires1 +81% +44% CAGR2 CAGR2 +14% Manage for growth +9% CAGR2 Manage APAC EMEA for growth +7% Americas Americas CAGR2 EMEA CAGR2 Manage APAC +6% +2% for value CAGR2 Manage +13% for valu
Slide 10: From Tires and Services to Integrated Solutions Provider
Our Opportunity From Tires and Services to Integrated Solutions Provider Heading toward Embracing digitalization Moving to selling value Coming from tires Integrated Offering Single solutions provider Bundling single services Intelligent tire tires services Space for Sender Information Confidential
Slide 11: Increasing Value Creation and Customer Retention
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 Space for Sender Info
Slide 12: Sustainable and Value-creating Solutions Along the Entire Value Chain
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 improve
Slide 13: Adjusted EBIT Margin Bridge
Adjusted EBIT1 Margin Bridge Industry-leading Profitability ~ 13% ~ 12% to 16% 2020E 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 › Extend m
Slide 14: Summary: Vision 2030
Summary Vision 2030: The Strategic Navigator for Our Future Success Excellence We stand for industry-leading operational excellence. Growth We continue to profitably grow our successful global tire business. Differentiation Front-runner in value-adding digital and sustainable solutions. Team We will
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: Space for Sender Information Confidential
Space for Sender Information Confidential