Continental Ag · XETR:CON
Continental — Investor Day (December 2023)
15 slides from Continental's investor day presentation, Dec 4, 2023
Slide 1: Capital Market Day 2023
2023 CapitalMarketDay Hanover, December 4
Slide 2: Group at a Glance - Outlook 2023
Group at a Glance - Outlook 2023 WA 2©? -€41-43 ~5.5-65% ~€0.8-1.2 billion insales in adj. EBIT' margin billion in adj. free cash flow2 ContiTech ~€6.8-7.2 bn ~6-7% Tires ~€14-15 bn =4/2.5-13.5% Automotive ~€20-21 bn ~2-3% We confirm our guidance fore amortization of intangibles from PPA, changes in
Slide 3: 2024+ Era of Execution: Our Commitment
2024+ Era of Execution Expansion of Regular reporting visibility and level on our measures of disclosure and progress Clear short and mid-term targets Our commitment
Slide 4: Topline Development
Era of Execution Topline Development Sales (€ bn) ContiTech Automotive Short-term
Slide 5: Path of Profitability
Era of Execution Path of Profitability Adjusted EBIT! margin (9) Main drivers: Volume Wi Self-help >» Commercial excellence > Outperformance in targeted profit pools > Operational excellence >» Footprint rightsizing putomotve | hel 2023e | VOLUME ([SEGMBEEBY Shortterm | voLUME [SEQMBEEB Mid-term 1 B
Slide 6: Effective Capital Allocation
Era of Execution Effective Capital Allocation Value creation > Debt > Dividend Financing Strong > Equity operations balance sheet Portfolio management : ; > Best ownership reviews >» M&A Strategic capital allocation to strengthen total shareholder return
Slide 7: Updated Dividend Policy
Era of Execution Updated Dividend Policy Dividend policy Dividend per share’ (€) 2023 onwards payout ratio : 4.75 375 3.25 EX) i [ ; [ 20 ~20% to ~40% (Previously ~15% to ~30%) L aT 2013, 2014) =2015 2018 2019 2020 2021° 2022 Payout ratio: 26% 27% 28% 1 Dividend paid for the respective fiscal year,
Slide 8: Committed to Investment Grade
Era of Execution Committed to Investment Grade Current credit rating Mid-term targets | Group Moody's Baa2 (since August 23,2022) Stable outlook Rating BBB/BBB+ Standard & Poor's BBB 1 5 (since March 22,2023) — Stable outlook Geri retite atone Fitch BBB (since October 17,2022) Stable outlook Beyuiyy
Slide 9: Expectations on Cash Flow
Era of Execution Expectations on Cash Flow Capital expenditure | Sectors Cash generation! | Sectors ContiTech ~4-5% ContiTech >65% Tires ~7-8% Tires >60% Automotive ~6-7% Automotive >45% Capital expenditure | Group Cash conversion? | Group ~6-7% >70% All figures mid-term 1 Cash Generation: (EBITDA -
Slide 10: Our Commitment
Era of Execution Our Commitment ContiTech Tires Automotive Short-term Mid-term Short-term Mid-term Short-term Mid-term Sales ~€7-8 bn ~€8-9 bn ~€15-16 bn ~€17-18 bn ~€22-24 bn ~€26-29 bn Adjusted EBIT? margin >9% ~9-11% >13% ~13-16% >6% ~6-8% Return on capital employed? >20% 22% >20% >23% >15% >20%
Slide 11: Our Commitment
Era of Execution Our Commitment Group Short-term Mid-term Sales ~€44-48 bn ~€51-56 bn Adjusted EBIT' margin >8% ~8-11% Return on capital employed? >15% >20% Cash conversion? >70% >70% 1 Before amortization of intangibles from PPA, changes in the scor lidation (only 2023e), and special effects, 2 ROC
Slide 12: Group Clear Path to Value Creation
Group Clear Path to Value Creation > Foundations laid for sustainable profitable growth > Sharpened capital allocation in place > Committed financially driven organization Welcome to our era of execution
Slide 13: Continental Spotlight Sectors on the Move
Continental Spotlight Sectors on the Move ee Capital —— Market Day : ~*~ reais LI a Z
Slide 14: Disclaimer Capital Market Day 2023
Disclaimer Capital Market Day 2023 This presentation has been prepared by Continental Aktiengesellschaft solely in connection for the Capital Market Day on December 4, 2023, and the subsequent analyst and investor meetings . It has not been independently verified. This presentation as well as remark
Slide 15: Continental: The Future in Motion
@ntinentals. The Future in Motion