Continental Ag · XETR:CON
Continental — H1 2024 Earnings Presentation
30 slides from Continental's earnings presentation, Aug 7, 2024
Slide 1: H1 2024 Results
H1 2024 Results Hanover – August 7, 2024 Ticker: CON ADR-Ticker: CTTAY Nikolai Setzer – CEO http://www.continental-ir.com Olaf Schick – CFO
Slide 2: Agenda
Agenda 1 Spin-off of Automotive Group Sector 2 Group Highlights 3 Automotive 4 Tires 5 ContiTech 6 Cash Flow 7 2024 Outlook Back-up and Fact Sheets 2023 – Q2 2024 Q2 2024 Results © Continental AG Public August 7, 2024 2 Internal
Slide 3: Value Crystallization with Separation and 100% Spin-off of Automotive Group Sector
1 | Value Crystallization with Separation and 100% Spin-off of Automotive Group Sector Creation of two strong, independent and listed players – robust and agile with full focus on execution and performance Robust set-up of Automotive and full entrepreneurial freedom to best respond to increasingly d
Slide 4: Transaction Summary
1 | Transaction Summary 100% Spin-off of Automotive Group Listing of Automotive Group targeted by the end of After Automotive Group Separation1 2025 on the Frankfurt Stock Exchange Continental Shareholders Automotive Group expected to qualify for MDAX 100% 100% Automotive Group No investment needed
Slide 5: Group Highlights: Most Important KPIs for Q2 2024
2 | Group Highlights Most Important KPIs for Q2 2024 Q2 2023 Q2 2024 Executive Summary €10.4 bn €10.0 bn Sales › Organic growth of -3.1% due to persistently weak markets Adjusted EBIT1 €501 mn €704 mn Adjusted EBIT1 margin 4.8% 7.0% › FX still negatively impacting all sectors PPA2 -€29 mn -€27 mn ›
Slide 6: Automotive Scorecard - CMD 2023 to H1 2024
2 | Group Highlights Automotive Scorecard - CMD 2023 to H1 2024 Significant Strong Progress Focus on Next Steps Restructuring › ~ ¾ of pricing negotiations successfully finalized › Improve material costs via design-to-cost measures Operating leverage › Focus on COEMs: increased resilience in China ✓
Slide 7: ContiTech Scorecard - CMD 2023 to H1 24
2 | Group Highlights ContiTech Scorecard - CMD 2023 to H1 2024 Strategic Measures Strong Progress Focus on Next Steps › Successfully (re)negotiated contracts regarding › Attractive product mix management Operating leverage inflation ✓ › Focused strategy execution – shift to industrials › Footprint o
Slide 8: Group Highlights Q2 2024 – Sales and Adjusted EBIT
2 | Group Highlights Q2 2024 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing -2.2% 5,133 4,956 -0.5% 14.7% 13.7% 3,459 3,399 471 498 -5.6% 2.7% 7.1% 6.5% 4.4% 1,742 1,646 -0.5% 133 2.6% -
Slide 9: Automotive Q2 2024 – Sales and Adjusted EBIT
3 | Automotive Q2 2024 – Sales and Adjusted EBIT Sales1, 2 (€ mn) Adjusted EBIT3 (€ mn) Sales 5,133 -2.2% 4,956 › Sales impact from FX: -1.2% 867 › Negative volume development mainly driven by AM -2.8% 831 weak European market, delayed ramp-ups and unfavorable product mix AN 1,132 +7.9% 1,212 2.7% ›
Slide 10: Automotive: Regional Production vs. Sales Growth in Q2 24
3 | Automotive Regional Production vs. Sales Growth in Q2 2024 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 4% ~ 1%pt 2% 0% -2% -3% -2% -6% -4% Europe: share of sales1 North America: share of sales1 China: share of sales1 PC< production weighted Q2 2
Slide 11: Automotive Q2 2024 – Order Intake of €5.9 bn Lifetime Sales
3 | Automotive Q2 2024 – Order Intake of €5.9 bn Lifetime Sales Order Intake Q2 20241 (€ bn) Highlights User Experience: €2.1 bn › Major order for latest generation display solution 0.3 1.2 Safety and Motion: €2.0 bn 2.1 › Multiple awards for latest generation brake systems 2.0 Architecture and Netw
Slide 12: Tires Q2 2024 – Sales and Adjusted EBIT
4 | Tires Q2 2024 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -0.8% -0.5% 3,459 3,399 13.7% 14.7% › Volumes: +0.2%, OE and truck markets 498 remain weak, improved demand in 471 replacement markets in EMEA and ongoing growth in APAC › Price/mix: -0.8%, still a
Slide 13: ContiTech Q2 2024 – Sales and Adjusted EBIT
5 | ContiTech Q2 2024 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -0.5% 1,742 -5.6% 6.5% 7.1% › Automotive OE and the industry markets 1,646 116 remain weak, especially in Europe 113 › Demand below expectations in particular in off-highway, construction, agri
Slide 14: Cash Flow: Adjusted Free Cash Flow Operationally Improved
6 | Cash Flow Adjusted Free Cash Flow Operationally Improved Cash Flow Q2 2024 (€ mn) Operating Investing1 Adjusted Free Cash Flow1 Operating Cash Flow › Improved operational result › Improvements in working capital › Payment of €100 mn linked to the end of fine proceedings 399 557 147 -414 -409 -14
Slide 15: 2024 Outlook – Main Markets
7 | 2024 Outlook – Main Markets Vehicle Production Replacement Tires1 Industrial Production Passenger Cars & Light Trucks Q2 2024 2024E Q2 2024 2024E Q2 2024 2024E -6% to -4% Europe -6% +5% 0% to +3% Eurozone -1.5% -2% to 0% -3% to -1% -1% to +2% North America +2% 0% to +2% 0% USA 0.0% -1% to +1% 0%
Slide 16: 2024 Outlook Adjusted
7 | 2024 Outlook Adjusted 2024E Continental Group consolidated sales Around €40.0 bn – €42.5 bn (prev. ~ €41.0 bn – €44.0 bn) Adj. EBIT1 margin Around 6.0% – 7.0% Automotive sales Around €19.5 bn – €21.0 bn (prev. ~ €20.0 bn – €22.0 bn) Adj. EBIT1 margin Around 2.5% - 3.5% (prev. ~ 3.0% – 4.0%) Tire
Slide 17: Internal
Internal
Slide 18: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on August 7, 2024, 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 Q2 2024 Results © Continental AG Public August 7, 2024 19 Internal
Slide 20: Capex, Depreciation and Earnings per Share – Q2 2024
Back-up Capex, Depreciation and Earnings per Share – Q2 2024 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1, 2 (€) 511 514 523 477 0.10 1.52 1.62 4.9% 4.8% 29 27 1 1, 2 Q2 2023 Q2 2024 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sales | ■ Deprecia
Slide 21: 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 22: Automotive: Regional Production vs. Sales Growth in H1 2024
Automotive Regional Production vs. Sales Growth in H1 2024 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 5% ~ -1%pt 2% 0% -2% -1% -2% -4% -3% Europe: share of sales1 North America: share of sales1 China: share of sales1 PC< production weighted H1 2023
Slide 23: Fact Sheets 2023 – H1 2024
Fact Sheets 2023 – H1 2024 Q2 2024 Results © Continental AG Public August 7, 2024 23 Internal
Slide 24: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects. Q2 2024 Results © Continental AG Public August 7, 2024 24 Internal
Slide 25: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter Q2 2024 Results © Continental AG Public August 7, 2024 25 Internal
Slide 26: Reported and Adjusted H1 2024 Results
Fact Sheets Reported and Adjusted H1 2024 Results 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects. Q2 2024 Results © Continental AG Public August 7, 2024 26 Internal
Slide 27: Automotive: Pro-forma Restatement Dissolution Smart Mobility FY 2023
Fact Sheets Automotive: Pro-forma Restatement Dissolution Smart Mobility FY 20231 1 January 1, 2024, the former SMY business area was dissolved into AM, AN and SCT. The 2023 figures are displayed accordingly on a pro-forma basis. . Q2 2024 Results © Continental AG Public August 7, 2024 27 Internal
Slide 28: Financial Calendar and Upcoming Investor Meetings
Continental Financial Calendar and Upcoming Investor Meetings 2024 Upcoming Roadshows and Conferences Full-Year Results March 7, 2024 › Q2 2024 Roadshow (CEO) › August 8-9, virtual Annual Shareholders’ Meeting April 26, 2024 › Roadshow Nordics Q1 Quarterly Statement May 8, 2024 › End of August › Mor
Slide 29: References
References Useful Links to Continental Websites Investor Relations Investor Relations Capital Market Day Capital Market Day 2023 Latest Presentations Presentations Events Events Investor Presentation (Fact Book) Investor Presentation 2024 Sustainability Sustainability Integrated Sustainability Repor
Slide 30: Contact
Contact Investor Relations Continental-Plaza 1 e-mail: ir@conti.de 30175 Hanover fax: +49 511 938 1080 Germany www.continental-ir.com Rachel Arellano phone: +49 511 938 10478 Analysts and Institutional Investors e-mail: rachel.arellano@continental.com Max Westmeyer phone: +49 511 938 13650 Andrea Kr