Continental Ag · XETR:CON
Continental — Continental Automotive — Merger or Acquisition (March 2025)
29 slides from Continental's merger presentation, Mar 19, 2025
Slide 1: Automotive
Automotive LEAD. TRANSFORM. DELIVER. March 19, 2025 Public Internal
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Continental Aktiengesellschaft for information purposes only in connection with the envisaged Spin-off of its subsidiary group “Continental Automotive”. It has not been independently verified. This presentation as well as any remarks, comments and ex
Slide 3: Continental – Separation into two companies planned
Continental – Separation into two companies planned Industry environment requires Two dedicated entities more focus and speed with more agility Investors seek more targeted Creation of two independent, investment opportunities listed entities Separation and 100% Spin-off Two strong separate business
Slide 4: Creation of two independent leading companies
Creation of two independent leading companies After Automotive Group Sector Separation1 “New Continental” Automotive › ~€20bn Sales2 › ~€20bn Sales3 › Lean Holding + two › Technology Leader, industry-leading strong4 Balance Sheet, businesses significant upside potential › ~96k Employees2 › ~93k Empl
Slide 5: On track to deliver Spin-off in September 2025
On track to deliver Spin-off in September 2025 Industry environment requires more focus and speed ✓ Spin-off announcement, Executive Board and Supervisory Board Approval ✓ AGM Shareholder vote – Strong support from major shareholders secured April 25, 2025 Planned for Capital Market Days for Automot
Slide 6: Transaction overview: 100% Spin-off of Automotive Group Sector
Transaction overview 100% Spin-off of Automotive Group Sector 100% Spin-off of Automotive Group Sector into an independent, publicly traded company Listing in the Prime Standard segment of the Frankfurt Stock Exchange planned for Sept. Headquartered in Frankfurt1 and expected to qualify for MDAX2 wi
Slide 7: Today's presenter
Today’s presenter Since May 2023, leading the Automotive transformation and successful turnaround as responsible Continental Board Member Tenured Automotive executive with experience in Asia, Europe, and Americas Philipp von Hirschheydt Deep capital market understanding Designated CEO Automotive thr
Slide 8: We turn the SDV ambitions of our customers into solutions
We turn the SDV ambitions of our customers into solutions LEAD. TRANSFORM. DELIVER. 8 Public Internal
Slide 9: Who we are: Strong foundation with upside potential
Who we are: Strong foundation with upside potential Technology / Global reach and Stability Top market electronics leader + local-for-local set-up + positions + with upside potential › Comprehensive › Business with virtually › >80% of sales with Top › Strong5 balance sheet product portfolio all rele
Slide 10: Tangible content per vehicle upside potential
Tangible content per vehicle upside potential CAGR from 2024 to 2029E › Content per vehicle Volume growth, Content growth, expected to grow above light vehicle production1, total content value per global light vehicle in mn vehicles vehicle2,3, €k per vehicle production market + 1.8% CAGR + 4.7% CAG
Slide 11: Automotive – Agenda for future success
Automotive – Agenda for future success LEAD 1 in future proof technologies TRANSFORM 2 into a High-Performance Organization DELIVER 3 on our commitments LEAD. TRANSFORM. DELIVER. 11 Public Internal
Slide 12: Automotive – Agenda for future success
Automotive – Agenda for future success › Business with virtually all relevant OEMs › Global player – local-for-local setup 1 LEAD › Four strong BAs1 with comprehensive portfolio enabling SDVs › Group provides stability and supports development of next gen. technology › Competitive cost structure as
Slide 13: LEAD in future proof technologies
LEAD 1 in future proof technologies LEAD. TRANSFORM. DELIVER. 13 Public Internal
Slide 14: Automotive unites four leading BAs
Automotive unites four1 leading BAs2 › Unique access to OEMs via global footprint › Funding of next generation innovation R&D › Shared technology solutions › Scale benefits in purchasing, supply chain and manufacturing AM ANS SAM UX Autonomous Architecture and Safety and User Mobility Network Soluti
Slide 15: TRANSFORM into a High-Performance Organization
TRANSFORM 2 into a High-Performance Organization LEAD. TRANSFORM. DELIVER. 15 Public Internal
Slide 16: Stringent transformation leading to visible results
Stringent transformation leading to visible results… Past challenges identified and addressed Improvements visible Return on sales7, in % › ~900 product ramp-ups1 since and incl. 2022 Product › Product clusters with low margin phased out in 2024 – in total 2024: 2.5%8 Offering ~10% of all product cl
Slide 17: Further concrete measures in execution / planned
…Further concrete measures in execution / planned › Plants: Investments in BCC1 largely completed; shift to be continued to further improve our footprint, 5 additional Footprint plant closures in HCC2 in the mid-term. › Gross Margin: Value based pricing, material cost and Re-DtC3 efforts supplemente
Slide 18: Standalone set-up as additional catalyst
Standalone set-up as additional catalyst Spin-off as a catalyst to unleash significant potential! The time is now to embrace the rapid transformation of our industry – Market Perspective stability, independence, and agility are key! The team is fired up to take ownership and drive entrepreneurship –
Slide 19: DELIVER on our commitments
DELIVER 3 on our commitments LEAD. TRANSFORM. DELIVER. 19 Public Internal
Slide 20: Strong foundation with clear value creation focus
Strong foundation with clear value creation focus Foundation Strategic Focus › World leading electronic products › Defend and grow leading position Topline › Multiple technology partners › Continue value-based pricing Performance › Local-for-local approach › Capitalize on CPV1 growth in product port
Slide 21: Leadership team in place to unlock the potential
Leadership team in place to unlock the potential Management set-up Committed to a standalone for success success story CEO with proven track record › Performance: Highly motivated team to prove Successful execution of turnaround under themselves in the standalone set-up Philipp von Hirschheydt’s lea
Slide 22: Strong Balance Sheet allows full focus on strategy execution
Strong Balance Sheet… Robust Targeted Capital Structure1… Industry Leading Net Leverage Expected3 Strong Liquidity Position 2.0x 2.3x 1.6x 1.5 €bn cash and cash equivalents 1.3x 2.5 €bn revolving credit facility Net Cash Position2 (1.0)x Automotive Peer 1 Peer 2 Peer 3 Peer 4 No financial debt Divid
Slide 23: Automotive – Join the ride!
Automotive – Join the ride! LEAD… …TRANSFORM… …DELIVER + = › Global player › Cost competitiveness › Strategy execution as key focus › Top market › Committed positions › Portfolio measures leadership › Strong1 Balance › Spin-off as catalyst › Highly attractive Sheet upside potential 1. Data as at Mar
Slide 24: WE. ARE. Automotive
WE. ARE. Automotive LEAD. TRANSFORM. DELIVER. 24 Public Internal
Slide 25: Appendix
Appendix LEAD. TRANSFORM. DELIVER. 25 Public Internal
Slide 26: Autonomous Mobility (AM) Pioneering the future with scalable solutions
Autonomous Mobility (AM) Pioneering the future with scalable solutions €3.3bn Business Overview Market & Position Components › Megatrend Exposure: Significant growth potential from autonomous driving transformation Top 31 › Radars and Cameras › ADCU6 › Leading Autonomous Driving Components: >20% mar
Slide 27: Architecture and Network Solutions (ANS) Enabler of SDV architectures
Architecture and Network Solutions (ANS) Enabler of SDV architectures €5.6bn Business Overview Market & Position › Computing (High performance › Growth Potential: ANS market with >10% market7 CAGR computer (HPC), Zone) from 2024 to 2029E #11 › Connectivity / Telematics › Top Position: Rank #1-3 with
Slide 28: Safety and Motion (SAM) Efficient safety powerhouse
Safety and Motion (SAM) Efficient safety powerhouse €7.5bn Business Overview Market & Position › Robust Market: Indispensable safety offering with highest › Electronic Brake Systems quality focus #11 › Wheel Brakes › Leadership Position: Leading in current safety technology Brake Systems and strateg
Slide 29: User Experience (UX) The new horsepower
User Experience (UX) The new horsepower €3.1bn Business Overview Market & Position › Structural Growth: Significant upside potential to content › Multi Displays per vehicle driving >5% market5 CAGR from 2024 to 2029E #11 › Driver Information Displays › #1 Position: ~15% global market share6 providin
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