Slide 1: FY 2022 Results
FY 2022 Results Hanover – March 8, 2023 Ticker: CON ADR-Ticker: CTTAY Katja Dürrfeld – CFO http://www.continental-ir.com Nikolai Setzer – CEO
Slide 2: Agenda
Agenda 1 Group Highlights 2 Automotive 3 Tires 4 ContiTech 5 Cash Flow 6 2023 Outlook Back-up and Fact Sheets 2021 – 2022 FY 2022 Results © Continental AG Public March 8, 2023 2 Internal
Slide 3: Most Important KPIs for FY 2022
1 | Group Highlights Most Important KPIs for FY 2022 FY 2021 FY 2022 Executive Summary 2022 Sales €33.8 bn €39.4 bn › Price negotiations with OEMs successfully concluded in all sectors Adjusted EBIT1 €1,855 mn €1,951 mn › Strong organic growth of +12.3%, FX effect on sales +4.5% Adjusted EBIT1 margi
Slide 4: Tires: Positive Mix Driven By EV Strength and UHP Contributions
1 | Group Highlights Tires: Positive Mix Driven By EV Strength and UHP1 Contributions OE Homologations for EVs Ultra-High-Performance Tires EV homologations EV share of all homologations UHP-Share of PLT2 sales UHP-Share of PLT2 units >400 48% 44% >30% 38% ~ 300 35% 34% 30% >20% 26% 24% - - ~ 100 ~
Slide 5: Proposed Dividend Considers High Non-Cash Effects in Net Income
1 | Group Highlights Proposed Dividend Considers High Non-Cash Effects in Net Income Dividend per share1 (€) 4.75 4.50 4.25 3.75 3.25 3.00 2.50 2.25 2.20 1.50 1.50 0 0 3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mid-term Payout n.a. not 24% 24% 26% 27% 28% 30% 30% 33% n.a. n.a
Slide 6: Q4 2022 – Sales and Earnings
1 | Group Highlights Q4 2022 – Sales and Earnings Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing 17.9% 12.3% 4,819 3,971 3,703 3,200 11.0% 12.1% 10.3% 1,682 1,465 352 381 3.4% 2.1% 5.7% -34.7% 2.3% -6.5% -3.6% 10
Slide 7: Automotive Q4 2022 – Sales and Adjusted EBIT
2 | Automotive Q4 2022 – Sales1 and Adjusted EBIT2 Sales1 (€ mn) Adjusted EBIT2 (€ mn) Automotive › Sales impact from FX: +3.5% +17.9% 4,819 › Organic growth driven by new pricing agreements with customers and volume increases 544 3,971 › Inflation effects were above €100 mn AM 443 +21.1% Autonomous
Slide 8: Automotive Sales and Adjusted EBIT
2 | Automotive Sales1 and Adjusted EBIT2 Sales1,4 and Adjusted EBIT2,4 FY 2021 (€ mn) Sales1 and Adjusted EBIT2 FY 2022 (€ mn) ∑ 15,357 -215 -1.4% +13.9% 18,322 -30 -0.2% +19.3% AM 2,056 -194 -9.4% AM 1,671 -86 -5.2% +12.1% SAM 6,822 SAM 5,827 +164 2.4% +47 0.8% +4.3% SMY 2,414 +84 3.6% SMY 2,123 +9
Slide 9: Regional Production vs. Sales Growth in Q4 22
2 | Automotive Regional Production vs. Sales Growth in Q4 2022 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 30% 30% 30% 30% 27% ~ +13%-pts 20% 20% 20% 18% 20% 9% 10% 8% 10% 10% 10% 7% 5% 7% 0% 0% 0% 0% -5% -10% -10% -10% -10% Europe: share of sales1 No
Slide 10: Regional Production vs. Sales Growth in FY 22
2 | Automotive Regional Production vs. Sales Growth in FY 2022 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 30% 30% 30% 30% ~ +10%-pts 20% 20% 20% 20% 15% 14% 12% 10% 11% 10% 10% 10% 6% 10% 4% 0% 0% 0% 0% -1% -10% -10% -10% -10% Europe: share of sales1
Slide 11: Automotive Q4 2022 – Order Intake of More than €5 bn Lifetime Sales
2 | Automotive Q4 2022 – Order Intake of More than €5 bn Lifetime Sales AN, SMY and UX1: €1.4 bn Safety and Motion: €3.1 bn Highlights: Highlights: › Order for L-Shape display solution › Major business wins for MK C1 and MK C2 brake systems › Business wins for light control units › Orders for electr
Slide 12: Tires Q4 2022 – Sales and Adjusted EBIT
3 | Tires Q4 2022 – Sales and Adjusted EBIT1 Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +12.3% › Impact from FX: +3.4% 3,703 › Volumes: -6.8%: declining replacement 3,200 11.0% 381 10.3% volumes in all regions, OE volumes recovering 352 › Price/mix: +19.1%, ~ 2/3 is attributable to pricing in all repl
Slide 13: ContiTech Q4 2022 – Sales and Adjusted EBIT
4 | ContiTech Q4 2022 – Sales and Adjusted EBIT1 Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +12.1% › Impact from FX: +3.7% 1,682 › Successful price negotiations with automotive 1,465 82 OE- and industrial customers 5.7% › Stable volumes in OE business › Volume reduction in industrial- and aftermarket
Slide 14: Cash Flow – Continuing Operations Only
5 | Cash Flow – Continuing Operations Only Free Cash Flow Impacted by Higher Working Capital Cash Flow (€ mn) Operating Cash Flow Operating Investing Free cash flow1 › Higher working capital due to higher material prices and operational stock increases as well as higher receivables led to a lower op
Slide 15: 2023 Outlook – Main Markets
6 | 2023 Outlook – Main Markets Vehicle Production Replacement Tires1 Industrial Production Passenger Cars & Light Trucks 2022 2023E 2022 2023E 2022 2023E Europe -1% +3% to +5% +2% -2% to +1% Eurozone +0.7% -1% to +1% North America +10% +3% to +5% -4% -1% to +2% USA +4.0% -2% to 0% China +6% 0% to +
Slide 16: 2023 Outlook
6 | 2023 Outlook 2023E Continental Group consolidated sales Around €42 bn – €45 bn Adj. EBIT1 margin Around 5.5% – 6.5%, incl. cost inflation (materials, labor, energy, logistics) headwind of ~ €1.7 bn Automotive sales Around €20.5 bn – €21.5 bn Adj. EBIT1 margin Around 2% – 3%, incl. cost inflation
Slide 17: 2023 Outlook – Sales
6 | 2023 Outlook Sales 1,2 (€ bn) Around 20.5 – 21.5 Around 18.3 14.5 – 15.5 14.0 Around 6.6 6.8 – 7.2 2022 Market Out- 2023E 2022 Market Price/Mix 2023E 2022 Market Price 2023E performance Automotive Tires ContiTech › (+) Increase in global vehicle production › (+) Replacement market › (+) Increase
Slide 18: 2023 Outlook – Adjusted EBIT
6 | 2023 Outlook Adjusted EBIT 1,2,3 (€ mn) Automotive Tires ContiTech +€ 1,842mn +€ 308mn -€ 30mn 2022 Market Net Op. 2023E 2022 Market Net Op. 2023E 2022 Market Net Op. 2023E Outperf. Perform. Outperf. Perform. Outperf. Perform. Around Around Around -0.2% 13.1% 4.7% 2% - 3% 12% - 13% 6% - 7% › (+)
Slide 19: 2023 Outlook – Free Cash Flow
6 | 2023 Outlook Free Cash Flow Before Acquisitions And Divestments1 (€ bn) Details Operating Cash Flow › (+) Higher EBIT › (+) Changes in working capital: smart inventory, accounts receivable cash in Around › (-) Outflow for restructuring ~ €200 mn 0.8 – 1.2 Investing Cash Flow › Capex (PPE and sof
Slide 20: Ew eae
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Slide 21: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on March 8, 2023, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recomm
Slide 22: Back-up
Back-up FY 2022 Results © Continental AG Public March 8, 2023 22 Internal
Slide 23: Brake-by-Wire Systems – Stepwise Evolution
Back-up Brake-by-Wire Systems – Stepwise Evolution wet dry FBS 0 FBS 1.x FBS 2.0 FBS 3.0 Wet Wet by-wire Semi Dry by-wire Full Dry by-wire Software Software Software Software › Simulator brake system › Enabler for skateboard › Dry brake-by-wire on all › Vehicle assembly simplified › Vacuum-less chas
Slide 24: Transition to Continental Group Mid-term Adjusted EBIT Margin Targets
Back-up Transition to Continental Group Mid-term Adjusted EBIT1 Margin Targets2 Around 8% - 11% 5.0% 3.5% 2020 2022 Volume Outperformance Operational Mid-term target performance 1 Before amortization of intangible assets from purchase price allocation, changes in the scope of consolidation, and spec
Slide 25: Capex, Depreciation and Earnings per Share – FY 2022
Back-up Capex, Depreciation and Earnings per Share – FY 2022 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 3,062 0.54 2,426 2,099 1,947 0.33 0.87 5.8% 6.2% 159 150 1 1,2 2021 2022 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sales | ■ Deprec
Slide 26: Relevant Bonds
Back-up Relevant Bonds Conti-Gummi Conti-Gummi Issuer Continental AG Finance B.V., Finance B.V., Continental AG Continental AG Continental AG Netherlands1 Netherlands1 Issue Senior Notes Principal €500 mn €750 mn €625 mn €600 mn €750 mn €625 mn amount Offering price 99.804% 99.559% 99.589% 99.802% 9
Slide 27: Investment Grade Credit Profile
Back-up Investment Grade Credit Profile Leverage ratio1 Gearing ratio2,3 Equity ratio3,4 1.03 0.95 1.12 33% 30% 33% 32% 36% 36% FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 Continuing and discontinued operations | Only continuing operations Continental’s current credit rat
Slide 28: Fact Sheets 2021 – 2022
Fact Sheets 2021 – 2022 FY 2022 Results © Continental AG Public March 8, 2023 28 Internal
Slide 29: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter Sales Adjusted EBIT1 2021 2022 2021 2022 Sales (€ mn) Adj. EBIT¹ (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 4,114.2 3,796.0 3,476.6 3,970.6 15,357.4 4,246.0 4,315.0 4,941.3 4,819.3 18,321.6 Automotive 96.8 -85
Slide 30: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter EBITDA EBIT 2021 2022 2021 2022 (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 304.4 148.0 106.4 108.0 666.8 60.1 127.9 331.8 442.7 962.5 55.4 -103.2 -153.1 -173.7 -374.6 -204.3 -509.9 -426.2 170.3 -970.1 Tires 650.8 723.1
Slide 31: Reported and Adjusted FY 2022 Results
Fact Sheets Reported and Adjusted FY 2022 Results Contract (€ mn) Automotive Tires ContiTech Cons. / Corr. Group Manufacturing 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 Sales 15,357.4 18,321.6 11,807.6 14,005.2 5,912.6 6,594.3 889.6 665.6 -202.0 -177.8 33,765.2 39,408.9 EBIT -374.6
Slide 32: References
References Useful Links to Continental Websites Investor Relations Investor Relations Reports and Investor Presentation (Fact Book) Investor Presentation (Fact Book) Latest Presentations Presentations Events Events Sustainability Sustainability 2021 Integrated Sustainability Report 2021 Integrated S
Slide 33: Financial Calendar
Continental Financial Calendar 2023 Annual Financial Press Conference March 8, 2023 Annual Shareholders’ Meeting April 27, 2023 Q1 Quarterly Statement May 10, 2023 Half-Year Financial Report August 9, 2023 Nine-Month Quarterly Statement November 8, 2023 2024 Annual Financial Press Conference March 2
Slide 34: Contact
Contact Investor Relations Vahrenwalder Str. 9 e-mail: ir@conti.de 30165 Hanover fax: +49 511 938 1080 Germany www.continental-ir.com Anna-Maria Fischer phone: +49 511 938 12203 Head of Investor Relations (IR) e-mail: anna-maria.fischer@conti.de Rachel Arellano phone: +49 511 938 10478 Director Inve