Fact Book
Fiscal Year
2012
Contents
I. Continental at a Glance
Slide Title Page 1 Disclaimer 7
3 More than 140 Years of Progress and Achievement 8
4 Continental Corporation – Sales, EBIT & Net Income 8
5 Conti Ranks No 3 in Worldwide Supplier Ranking 9
6 Executive Board 9
7 Megatrends in the Automotive Industry 10
8 A Leading Global Supplier for Key Automotive Electronics Applications 10
9 A Leading Global Supplier of Tire and Non-Tire Rubber Products 11
10 Sales by Region 11
11 EBITDA by Group and Corporation 12
12 Development of Consolidated Sales 12
13 Number of Employees 13
II. Continental Strategy
Slide Title Page 15 Systematic Entrepreneurial Approach 14
16 Back to Value Creation 14
17 Cost Consciousness – Production in Best-Cost Countries 15
18 Continental Balanced Distribution of Sales 15
19 Best Positioned for the 5 Fastest Growing Automotive Industry Segments 16
20 Continental Corporation Worldwide 16
21 Sales OE/Non-OE 17
22 Technological Balance 17
© Continental AG Fact Book 2012 | 1
Contents
III. Continental Megatrends
Slide Title Page 24 We Shape the Megatrends in the Automotive Industry 18
25 Environment: Initiatives in EU, USA and Japan – Towards Cleaner Mobility 19
26 Environment: Initiatives Towards Cleaner Mobility in Various Regions 19
27 Environment: Engine Development Roadmap 20
28 Environment: Reduction of CO2 Emissions: Solutions by Continental 20
29 Environment: Development of Worldwide Turbo Charger Volumes 21
30 Information: Interior: Examples of Regional Initiatives and Projects 21
31 Information: Interior: The Car Will Be Connected to Its Environment 22
32 Information: Interior: Product Highlights for Intelligent Mobility 22
33 Safety: Regional Initiatives – Towards Safer Mobility 23
34 Safety: Road Traffic Deaths 23
35 Safety: ADAC – Milestones of Active Safety 24
36 Safety: Future Automotive Trends (1) 24
37 Safety: Future Automotive Trends (2) 25
38 Safety: Future Automotive Trends Require System Competence 25
39 Safety: Winter Tire Regulation 26
40 Safety and Environment: Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil
26
41 Tires: Key Initiatives 2001 – Vision 2025 27
42 Tire Sales and Growth Pillars – Supporting Elements of our Vision 2025 27
43 Additional Tire Production Capacity of 22 Million Units by 2015/16 28
44 Tires Vision 2025 – More Balanced Footprint 28
45 Environment: ContiTech: Engineering Green Value 29
46 Environment: ContiTech: Cumulative Market for ContiTech Products 29
© Continental AG Fact Book 2012 | 2
Contents
VI. Automotive Group
Slide Title Page 71 Key Figures 42
72 Sales and Adjusted EBIT by Division 42
73 Sales by Region 43
74 Order Intake (LTS) in the Automotive Group Totaled €25 bn in 2012 43
V. Market Data
Slide Title Page 57 Increasing Installation Rates of Electronic Brake Systems 35
58 Installation Rates of Fuel Injection Systems 35
59 Increasing Installation Rates of Double Clutch Transmission 36
60 Increasing Installation Rates of Turbocharger in Gasoline Engines 36
61 Increasing Installation Rates of Embedded Telematics 37
62 Increasing Installation Rates of Keyless Entry Systems 37
63 Increasing Installation Rates of Multimedia Systems 38
64 Increasing Installation Rates of Advanced Driver Assistance Systems 38
65 Increasing Installation Rates of Head-up Displays 39
66 Production of Light Vehicles 2011 – 2014 39
67 Production of Heavy Vehicles 2011 – 2014 40
68 Replacement Passenger, Light Truck and 4x4 Tires 2011 – 2014 40
69 Replacement Truck Tires 2011 – 2014 41
IV. Continental Corporation
Slide Title Page 48 Consolidated Key Figures 30
49 Sales and Adjusted EBIT by Quarter 31
50 Key Historical Financials and Credit Metrics 31
51 Development of Net Indebtedness and Gearing Ratio 32
52 Gross Indebtedness by Sources 32
53 Maturities 33
54 Purchasing – Production Materials 2012 33
55 Development of Raw Material Prices 34
© Continental AG Fact Book 2012 | 3
Contents
VI.3. Automotive Group – Interior Division
Slide Title Page 95 Business Units and Key Products 54
96 Locations Worldwide 54
97 Key Figures 55
98 Sales by Region 55
99 Market Position for Body & Security 2012 56
100 Market Position for Instrumentation & Driver HMI 2012 56
101 Market Position for Infotainment & Connectivity 2012 57
102 Market Position for Commercial Vehicle 2012 57
VI.1. Automotive Group – Chassis & Safety Division
Slide Title Page 76 Business Units and Key Products 44
77 Locations Worldwide 45
78 Key Figures 45
79 Sales by Region 46
80 Market Position for Electronic Brake Systems 2012 46
81 Market Position for Foundation Brake Systems 2012 47
82 Market Position for Actuation 2012 47
83 Market Position for Airbag Electronics 2012 48
84 Market Position for Advanced Driver Assistance Systems 2012 48
85 Growing Sales Volume for Electronic Brake Systems 49
VI.2. Automotive Group – Powertrain Division
Slide Title Page 87 Business Units and Key Products 50
88 Locations Worldwide 50
89 Key Figures 51
90 Sales by Region 51
91 Market Position for Diesel Injection Systems 2012 52
92 Market Position for Gasoline Injection Systems 2012 52
93 Market Position for Transmission Control Units 2012 53
© Continental AG Fact Book 2012 | 4
Contents
VII. Rubber Group
Slide Title Page 104 Key Figures 58
105 Sales and Adjusted EBIT by Division 59
106 Sales by Region 59
VII.1. Rubber Group – Tires Division
Slide Title Page 108 Business Units and Tire Brands 60
109 Key Figures 61
110 Sales by Region 61
111 Market Share for Passenger and Light Truck Tires 2012 62
112 Market Share for Truck Tires 2012 62
113 Worldwide Passenger and Light Truck Tire Production 2012 63
114 European Passenger and Light Truck Tire Production 2012 63
115 Worldwide Truck Tire Production 2012 64
116 Cost of Labor at Continental Manufacturing Sites 64
117 Passenger and Light Truck Tires: Product Mix Improvement 65
118 Passenger and Light Truck Tires: Unit Sales 2007 - 2012 65
119 Commercial Vehicle Tires: Unit Sales 2007 - 2012 66
VII.2. Rubber Group – ContiTech Division
Slide Title Page 121 Business Units and Key Products 67
122 Locations Worldwide 67
123 Key Figures 68
124 Sales by Region 68
125 A Leading Global Supplier in its Business Units 69
126 Sales and Employees 2012 69
© Continental AG Fact Book 2012 | 5
Contents
IX. Share & Bond Information
Slide Title Page 135 Share Data / ADR Data 74
136 Share Price Development vs. Major Stock Indexes 74
137 Common Stock 75
138 Shareholder Structure 75
139 Bond Details 76
140 Development of the Bonds 76
141 Development of Continental’s Credit Rating 77
142 10 Year Financial Overview 77
X. Glossary
Slide Title Page 144 Financial Glossary 78
145 Product Glossary 79
146 Contact Data 79
147 Financial Calender 80
VIII. Sustainability at Continental
Slide Title Page 128 Our Policies and Guidelines 70
129 Corporate Environmental Key Performance Indicators 71
130 Equal Opportunity 71
131 Corporate Memberships (1) 72
132 Corporate Memberships (2) 72
133 Corporate Bodies 73
© Continental AG Fact Book 2012 | 6
1
Disclaimer
This fact book has been prepared by Continental Aktiengesellschaft and includes information available to us as of March 19, 2013. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or any of its affiliates and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities or any other financial investment or exposure whatsoever.
Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic as of the date they are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or market shares of Continental and any of the participants in any market.
2
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 7
3
Continental at a Glance
More than 140 Years of Progress and Achievement
Merger with major companies of the German rubber industry to form Continental Gummi-Werke
AG.
Acquisition of a US company’s Automotive Brake & Chassis unit, the core of which is Alfred Teves
GmbH in Frankfurt.
Continental-Caoutchouc- und
Gutta-Percha Compagnie is founded in Hanover, Germany.
Continental strengthens its position in the ASEAN region and Australia by establishing its Continental Sime Tyre joint venture.
Takeover of the European tire operations of Uniroyal, the tire operations of the Austrian company Semperit, the North American tire manufacturer General Tire.
Continental reinforces its activities by acquiring Temic, the international electronics specialist.
Continental acquires Siemens VDO
Automotive AG and advances to among the top five suppliers in the automotive industry worldwide, at the same time boosting its market position in Europe, North America and Asia.
Continental expands its activities in telematics, among other fields, with the acquisition of the automotive electronics business from Motorola.
Through the acquisition of Phoenix, ContiTech becomes one of the world’s leading specialist for rubber and plastics technology outside the tire industry.
1871
1929
1979
1985
1987 1998
2001
2003 2004
2006
2007
Continental acquires a majority interest in the Slovak company Continental Matador Rubber s.r.o. and expands its position for the Tire and ContiTech divisions in Central and Eastern Europe.
2011
Continental strengthens its position in the tire business in Asia by acquiring the Indian tire manufacturer Modi Tyres Company Limited.
2012
Contintental founds a jointly managed company together with SK Innovation to supply first-class lithium-ion battery technology as partners in the future. It also acquires Parker Hannifin’s
automotive air conditioning business.
4
Continental at a Glance
Continental Corporation – Sales, EBIT & Net Income1
1) Net income attributable to the shareholders of the parent from 1998 until 2003, US GAAP / from 2004 onwards IFRS. 2) Siemens VDO incorporated starting December 1, 2007.
(in € millions)
6,743
9,132 10,115
11,233 11,408 11,534
12,597
13,837
14,887
16,619
24,239
20,096
26,047
30,505
32,736
398 607 533
33
694 855 1,157
1,507 1,602 1,676
-296 -1,040
1,935 2,597
3,073
138 235 205 -258
226 314 716 930 982 1,021
-1,124 -1,649
576 1,242
1,884
0
5,000
10,000
15,000
20,000
25,000
30,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales
EBIT
NIAT
US GAAP IFRS
2
© Continental AG Fact Book 2012 | 8
5
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000D
enso
Rob
ert
Bos
ch
Con
tinen
tal
Brid
gest
one
Ais
inS
eiki
Mag
na
Mic
helin
Hyu
ndai
Mob
is
Faur
ecia
JCI
Continental at a Glance
Conti Ranks No 3 in Worldwide Supplier Ranking
Top 10 Global OEM Suppliers – 2012 Sales (in € millions)
Source: Company filings. Calendarized to December year-end. Based on average currency exchange rates 2012.
1) Robert Bosch only includes Automotive Technology division. 2) Continental excluding ContiTech Industrial business. 3) Bridgestone including Diversified Products. 4) Aisin Seiki excluding Life & Energy related products. 5) Johnson Controls only includes Automotive Experience Division.
1 2 3 4 5
6
Continental at a Glance
Executive Board
José A. Avila
Powertrain Division
Helmut Matschi
Interior Division
Dr. Ralf Cramer
Chassis & Safety Division
Nikolai Setzer
Tire Division
Heinz-Gerhard Wente
ContiTech Division
Corporate Function:
Corporate Purchasing
Dr. Elmar Degenhart Chairman of the Executive Board
Corporate Functions: Corporate Quality and Environment, Corporate Communications, Continental Business System, Automotive Central Functions
Elke Strathmann
Corporate Functions: Human Resources,
Director of Labor Relations, Corporate Social Responsibility
Wolfgang Schäfer
Corporate Functions: Finance, Controlling, Compliance, Law, IT
© Continental AG Fact Book 2012 | 9
7
218
180
144
180 167
117 142 130
95 128 125 105
2010 2015E 2020E
USA China EU Japan
Road traffic deaths
CO2 targets in EU, USA & China (g/km)
Source: ICCT Int. Council of Clean Transportation, Global Passenger Vehicle FE/GHG regulations (6/2012).
Safety – For safe mobility
Environment – For clean power Information – For intelligent driving
Affordable Cars – For global mobility
Infotainment
A&B segment in BRIC (million units)
Multimedia
GPS / Galileo
Other cars
1) Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality. Source: Global Status Report on road safety, WHO 2013.
Continental at a Glance
Megatrends in the Automotive Industry
Number of road traffic deaths1
Infrastructure
12.2
17.6
2012 2017E
Source: IHS January 2013.
Region of
the Americas
African
Region
123,577
Eastern
Mediterranean
Region
South-East
Asia Region
Western
Pacific Region
European
Region
147,941
191,896
91,815
332,532
334,405
8
11.6
20.8
2011 2020E
Continental at a Glance A Leading Global Supplier for Key Automotive Electronics Applications
1) Before amortization of intangibles from PPA, consolidation and special effects. 2) ESC: Electronic Stability Control is a type of electronic brake system. 3) Source: Frost & Sullivan, 2013.
Actuation Advanced driver assistance systems Airbag electronics Electronic brake systems (EBS) Foundation brake systems
Diesel injection systems Gasoline injection systems Transmission control units
Double clutch transmission control units
Body and security products Commercial vehicle interiors Device connectivity and telematics units Instrumentation, displays and human machine interfaces
Sales 2012 €7,053 mn % of total 21%
Adj. EBIT1 €686.8 mn Adj. EBIT margin 9.7%
Sales 2012 €6,135 mn % of total 19%
Adj. EBIT1 €278.6 mn Adj. EBIT margin 4.5%
Sales 2012 €6,434 mn % of total 20%
Adj. EBIT1 €579.3 mn Adj. EBIT margin 9.0%
ESC2 installation rate by region (%) Gasoline direct injection systems installation rate by region (%) OEM navigation3 (in $ billions)
Chassis & Safety Powertrain Interior
21%
36%
21%
51%
2012 2017E EU NAFTA
19%
39%
73%
89%
2012 2017E China EU
© Continental AG Fact Book 2012 | 10
9
OE 53%
Non-OE
47% OE
29%
Non-OE
71%
Sales 2012 €3,712 mn % of total 11%
Adj. EBIT1 €444.1 mn Adj. EBIT margin 12.1%
Continental at a Glance
A Leading Global Supplier of Tire and Non-Tire Rubber Products
Regions EMEA The Americas APAC
Products Original equipment Winter tires High performance tires
Regions
EMEA The Americas APAC
Products
Original equipment Replacement
Automotive hoses and hose lines
Automotive interior trim
Conveyor belts
Marine and oil hoses and hose lines
Multiple V-ribbed belts and timing belts
Railway air springs
Truck and bus air springs
Sales 2012 €9,665 mn % of total 29%
Adj. EBIT1 €1,620.0 mn Adj. EBIT margin 17.0%
Passenger & Light Truck Tires Commercial Vehicle Tires ContiTech
Sales breakdown (%) Sales breakdown (%)
Tires
1) Before amortization of intangibles from PPA, consolidation and special effects.
10
Continental at a Glance
Sales by Region
Automotive Group 2012 €19,505 mn
Rubber Group 2012 €13,262 mn
Corporation 2012 €32,736 mn
Germany26%
Europe (excluding Germany)
24%
NAFTA23%
Asia24%
Other countries
3%
Germany22%
Europe (excluding Germany)
40%
NAFTA20%Asia
10%Other countries
8%
Germany25%
Europe (excluding Germany)
30%
NAFTA22%
Asia18%Other
countries5%
© Continental AG Fact Book 2012 | 11
11
Chassis & Safety20%
Powertrain12%
Interior17%
PLT34%
CVT6%
ContiTech11%
Continental at a Glance
EBITDA by Group and Corporation
Automotive Group 2012 €2,405 mn
Rubber Group 2012 €2,522 mn
Corporation 2012 €4,855 mn
Chassis &
Safety
44%
Powertrain
22%
Interior
34%
PLT = Passenger & Light Truck Tires. CVT = Commercial Vehicle Tires.
Chassis & Safety40%
Powertrain25%
Interior35%
PLT66%
CVT12%
ContiTech22%
Tires 78%
Tires 40%
12
Continental at a Glance
Development of Consolidated Sales
1) Since 2012 reported as Tires.
31% 29% 27% 26% 25%
36%
34%
33% 33% 30%
19%
18%
19%
19% 22% 10%
14%
16%
17% 18%
4%
5%
5%
5%
5%
24.2
20.1
26.0
30.5
32.7
2008 2009 2010 2011 2012
(€ billion)
by Region
Germany Rest of Europe NAFTA Asia Other countries
24% 21% 21% 20% 20%
16% 17%
18% 19% 19%
21%
22%
22%
21% 21%
21%
23%
22%
22% 6%
5%
5%
6% 29%
12%
12%
12%
12%
11%
24.2
20.1
26.0
30.5
32.7
2008 2009 2010 2011 2012
(€ billion)
by Division
Interior Powertrain
Chassis & Safety Passenger and Light Truck Tires
Commercial Vehicle Tires Tires
ContiTech
1
1 1
© Continental AG Fact Book 2012 | 12
13
Continental at a Glance
Number of Employees
22% 20% 20% 19% 20%
18% 18%
18% 19% 18%
19% 20%
21% 20% 20%
19% 20%
19%
19% 6% 6%
5%
6%
25% 16%
16%
17%
17% 17%
139,155 134,434
148,228
163,788 169,639
2008 2009 2010 2011 2012
by Division
Interior Powertrain
Chassis & Safety Passenger and Light Truck Tires
Commercial Vehicle Tires Tires
ContiTech
1
1
1
1) Since 2012 reported as Tires.
33% 33% 31% 30% 29%
33% 33% 32% 31% 31%
16% 14%
14% 15% 16%
13% 14%
16%
18% 18%
5% 6%
7%
6% 6%
139,155 134,434
148,228
163,788 169,639
2008 2009 2010 2011 2012
by Region
Germany Rest of Europe NAFTA Asia Other countries
14
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 13
15
Affordable Cars – For global mobility Safety – For safe mobility
Continental Strategy
Systematic Entrepreneurial Approach
Information – For intelligent driving Environment – For clean power
Value creation
Regional sales balance
Top market position
In the market
for the market
Balanced customer portfolio
Technological balance
Great people in an inspiring
culture
16
15,5
08 15,3
53
15,4
05
15,5
80
15,6
59
15,6
55
15,7
90
16,0
19
16,2
72
16,6
27
16,9
34
16,9
54
-2.5%
0.6%
8.9%
12.4% 13.2% 14.1%15.7% 16.2% 16.8% 17.6% 17.9% 18.1%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012
Trailing OA (in € millions) Trailing ROCE (in %)
Continental Strategy
Back to Value Creation
Note: Trailing ROCE and operating assets are calculated as reported EBIT/operating assets for the last twelve months (LTM) divided by average operating assets (OA) for the LTM.
© Continental AG Fact Book 2012 | 14
17
66% 60%
92%
46%
62% 69%
61%
96%
51% 64%
71% 63%
96%
54% 60%
Rest of world
2010 2011 2012 1) All years restated based on new definition of best-cost countries. 2) Based on sales. 3) Based on units.
Continental Strategy
Cost Consciousness – Production in Best-Cost Countries1
34%
19%
33%
69%
29% 36%
22%
36%
70%
31% 39%
24%
37%
70%
34%
Europe
Chassis & Safety2 ContiTech2 Interior2 Tires3 Powertrain2
Chassis & Safety2 ContiTech2 Interior2 Tires3 Powertrain2
18
Asia18%
North and South
America26%
Rest of world56%
Continental Strategy
Continental Balanced Distribution of Sales
Asia10%
North and South
America19%
Rest of world71%
Asia≥ 30%
North and South
America≥ 25%
Rest of world~ 45%
Asia North and South America Rest of world
2008 mid- to long-term 2012
% of total Corporation sales
© Continental AG Fact Book 2012 | 15
19
Continental Strategy Best Positioned for the 5 Fastest Growing Automotive Industry Segments
A High growth
CAGR 30% - 100%
C Low growth
CAGR 5% - 16%
CA
GR
Expected worldwide revenue development in % (CAGR 2011-2020)
B Medium growth
CAGR 16% - 30%
Source: Frost & Sullivan, 2013, based on 2011 data. 1) Emitec. 2) No complete system but electronics or components.
CAGR Product portfolio of
Gasoline particulate filters 100% Powertrain1
Selective catalytic reduction 69% Powertrain/ContiTech2
Battery propulsion systems 67% Powertrain
Switchable coolant and oil pumps 50% Powertrain
TPMS 32% Interior
Lane departure warning 31% Chassis & Safety
Electric motors 30% Powertrain
Start stop systems 28% Powertrain
Advanced parking assistance 28% Chassis & Safety
Forward collision avoidance 28% Chassis & Safety
Turbocharger (% of gasoline) 27% Powertrain
Blind spot detection 24% Chassis & Safety
Advanced voice recognition 16% Interior
Touch screens 16% Interior
Adaptive cruise control (ACC) 15% Chassis & Safety
Electric power steering 14% Chassis & Safety
App interface solutions 13% Interior
OEM navigation 9% Interior
Electronic stability program 8% Chassis & Safety
Smartphone navigation 7%
20
Continental Strategy
Continental Corporation Worldwide
More than 291 sites for production, R&D and sales in 46 countries. Headquarters in Hanover, Germany.
Status: January 2013.
Europe
South America
Argentina Brazil Chile Ecuador
Asia
China India
Indonesia Japan
Malaysia Philippines Singapore
South Korea Sri Lanka
Taiwan Thailand
Africa
Republic of South Africa Tunisia
Australia
Austria Belgium Denmark Finland France Germany*
Greece Ireland Italy Netherlands Norway
Czech Republic Hungary Kazakhstan Poland Romania
Russia Serbia Slovakia Turkey
North America
Canada Mexico USA
Portugal Spain Sweden Switzerland United Kingdom
© Continental AG Fact Book 2012 | 16
21
Continental Strategy
Sales OE/Non-OE
Non-OE 28%
Chassis & Safety 21%
Powertrain 19%
Interior 17%
Tires 9%
ContiTech 6%
28% of sales outside OE in 2012 OE Non-OE
100
100
89
29
53
11
71
47
Chassis & Safety (21% of total sales)
Powertrain (19% of total sales)
Interior (20% of total sales)
Tires (29% of total sales)
ContiTech (11% of total sales)
22
Continental Strategy
Technological Balance
Introduction Growth Maturity Saturation/
Decline
Time CAGR>=5-10% 0%<CAGR<10% CAGR<=0%
Strategy
Establish Standards & Leverage
R&D Cost
Migrate to All Car Segments
Extend Customer Portfolio
Reach Market Leading Position
Strategy
Defend Market Leading Position & Market Share
Cost control
Economies of scale
Standardization and/or scalability
System integration
© Continental AG Fact Book 2012 | 17
23
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
24
Continental Megatrends
We Shape the Megatrends in the Automotive Industry
Information – For intelligent driving
Affordable Cars – For global mobility
Environment – For clean power
Safety – For safe mobility
© Continental AG Fact Book 2012 | 18
25
Continental Megatrend: Environment
Initiatives in EU, USA and Japan – Towards Cleaner Mobility
EU aims to reduce CO2 emissions by improvement in vehicle technology:
For passenger cars, EU targets average CO2 emissions at:
• 130 g/km* from 20155 • 95 g/km from 2020
For passenger cars, excess emissions surcharges will be implemented in steps from 2012 onwards (100% penalty only starting in 2015 for not meeting targets)
For light commercial vehicles, EU targets average CO2 emissions at:
• 175 g/km from 2017 • 147g/km from 2020
EU1
1) Regulations (EC) No. 443/2009 and (EU) No. 510/2011. 2) Refers to the joint proposal of NHTSA and EPA, May 2009, and President Obama’s NFPE; The White House, May 19, 2009. 3) Refers to the joint proposal of NHTSA and EPA, November 2011. 4) Refers to “Act on the Rational Use of Energy” of the Ministry of Economics, Trade and Industry (METI) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT). 5) Corresponds to the EU6 Emission Standard. 6) NHTSA: National Highway Traffic Safety Administration . 7) EPA: Environmental Protection Agency. 8) CAFE: Corporate Average Fuel Economy. 9) 35.5 mpg CAFE = 250g/mile CAFE = 171 g/km NEDC ; 54.5 mpg CAFE =162g/mile CAFE = 110 g/km NEDC. 10) ECCJ: Energy Conservation Center Japan. 11) 16.8 km/l JC08 = 140 g/km JC08= 125 g/km NEDC.
Emerging markets likely to follow Europe/USA/Japan on fuel efficiency standards
NHTSA6 and EPA7 to establish a National Fuel Efficiency Policy (NFEP):
For passenger cars and light trucks
combined, CAFE8 set to increase to: • 35.5 mpg* by 20169 • 54.5 mpg by 20259
USA2,3
ECCJ10 aims to improve fuel efficiency standards by 23.5% by 2015 vs. 2004:
For passenger cars and light duty trucks
(<3.5 tonnes), the aim is to increase average level of fuel efficiency to:
• 16.8 km/l* by 201511
Japan4
Test cycle: CAFE (Corporate Average Fuel Economy)
* Miles per gallon
Test cycle: JC08 (Japanese Cycle)
* Kilometers per liter
Test cycle: NEDC (New European Driving Cycle)
* Gram per kilometer
26
90
110
130
150
170
190
210
230
250
270
2000 2005 2010 2015 2020 2025
US LDV US-Car EU Japan China S. Korea
Continental Megatrend: Environment
Initiatives Towards Cleaner Mobility in Various Regions
2 3
Gram CO2 per kilometer, normalized to NEDC1
Source: International Council on Clean Transportation. 1) New European Driving Cycle. 2) US and Canada light-duty vehicles include light commercial vehicles. 3) China's target reflects gasoline fleet scenario. If other fuel types are included, the target is lower.
Solid dots and lines: historical performance and enacted targets. Solid dots and dashed lines: proposed targets and studies.
© Continental AG Fact Book 2012 | 19
27
Continental Megatrend: Environment
Engine Development Roadmap
Source: IHS and Continental estimates as of May 2013. 1) Percentage of worldwide light vehicle production volume.
0
20,000
40,000
60,000
80,000
100,000
120,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Diesel Gasoline Port Fuel Gasoline Direct Injection Hybrid EV Electric Vehicle (EV)
Light vehicle production by drive type (thousand units)
70%1 51%1 38%1
28%1 7%1 42%1
21%1 21%1 20%1
10%1
28
Continental Megatrend: Environment Reduction of CO2 Emissions1: Solutions by Continental
1) Saving potential compared with gasoline direction injection Euro 5. 2) Selective Catalytic Reduction. 3) DEKA injector for diesel dosing into exhaust gas. 4) Advanced Energy Supply. 5) Power-On-Demand.
Hybrid electric vehicle
Compressed Natural Gas (CNG)
Piezo common rail injection
Telematics, ACC, ADAS
SCR systems/DDS
Energy management (AES )
Tires (rolling resistance, TPMS)
Double clutch transmission
Transmission (POD )
Energy management (POD )
Brake systems Min Max
~25%
15-20%
10-20%
5-12%
5%
2-5%
3%
3%
1-2%
1-2%
5%
2 3
4
5
5
© Continental AG Fact Book 2012 | 20
29
Continental Megatrend: Environment
Development of Worldwide Turbo Charger Volumes
Source: IHS and Continental estimates as of May 2011.
Gasoline turbo charger by cubic capacity (thousand units)
0
10,000
20,000
30,000
40,000
2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020
Up to 1.5 liter 1.6 - 2.5 liter 2.6 - 3.5 liter More than 3.6 liter
9% 21%
24%
CAGR Engines = 5.3% CAGR Turbo = 19.5%
10% 21%
33%
9% 24% 39%
Gasoline cars Turbo installation rate
Diesel turbo charger (thousand units) Gasoline turbo charger (thousand units)
0
20,000
40,000
60,000
80,000
2010 2015 2020
Diesel cars Turbo installation rate
2010 2015 2020
Gasoline cars Turbo installation rate CAGR Engines = 3.3% CAGR Turbo = 3.6% CAGR Engines = 3.5% CAGR Turbo = 17.9%
9% 21%
31% 97% 98% 99%
5% 6% 13%
CAGR Engines = 2.7% CAGR Turbo = 15.2%
CAGR Engines = 0.3% CAGR Turbo = 15.7%
CAGR Engines = -3.3% CAGR Turbo = 6.1%
30
Regional initiatives on
Tire pressure monitoring system (TPMS)1,2,3,4,13,14
Electric vehicle
market push5,6
Regional initiatives on
E-call5,7,15,16
Hands-free telephony8
Stolen vehicle tracking9
Rear detection system10
1) Regulation (EC) No. 661/2009 for Passenger Vehicles. 2) Federal Motor Vehicle Safety Standard No. 138 of NHTSA for passenger vehicles. 3) Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan. 4) Korean Motor Vehicle Safety Standard (KMVSS) - MLTM Notification 2010-631. 5) Directive 2010/40/EU of the European Parliament and of the Council of July 2010. 6) COM(2011) 144 final. 7) Recommendation adopted by the European Commission September 2011. 8) Several national laws and regulations in Asia/ Europe/ NAFTA/ Africa.
Regional initiatives on
Digital tachograph (DTCO)11
Electronic onboard recorder (EOBR)12
Intelligent transport systems (ITS)5,6
9) CONTRAN 245/2007 - no final rule in place. 10) For single-unit trucks. FMVSS 111 - no final rule in place. 11) Proposed revision of Regulation (EEC) No. 3821/85. 12) FMCSA Proposed rule 395 January 2011 / President signed legislation MAP21 in July 2012. 13) House Bill for Commercial Vehicle Safety - H.R. 4348 29.06.2012 TPMS for Motorcoaches. 14) DG CLIMA 2013 study on TPMS Cost / Benefit for Commercial Vehicles. 15) Russia ERA specifications - no final rule in place. 16) European Commission Brussels, C(2012) 8509 final.
ELVIRE ID4EV
Test field “HeERO”
ERTICO Sim-TD
Environment Safety Information
Doing more. For intelligent driving.
Doing more. For safe mobility.
Doing more. For clean power.
Continental Megatrend: Information
Interior: Examples of Regional Initiatives and Projects
European Projects: ELVIRE = Electric vehicle communication to infrastructure, road services and energy supply. ID4EV = Intelligent dynamics for fully electric vehicles. HeERO = Harmonized eCall European pilot.
ERTICO = European road transport telematics implementation coordination organisation. Sim-TD = Safe and intelligent mobility – field test Germany.
© Continental AG Fact Book 2012 | 21
31
Multimedia devices
GPS / Galileo
Infrastructure
Other cars
Infotainment
Continental Megatrend: Information
Interior: The Car Will Be Connected to Its Environment
32
Continental Megatrend: Information
Interior: Product Highlights for Intelligent Mobility
Existing Solutions
Freely programmable
cluster
Low-cost telematics
Gesture control
Head-up displays
Multimedia platforms
ITS Services Tire information systems
Intelligent antenna module
Digital key
Intelligent fleet management
Innovations
© Continental AG Fact Book 2012 | 22
33
Continental Megatrend: Safety
Regional Initiatives – Towards Safer Mobility
Electronic stability control (ESC)
• mandatory as of November 2011 for all new types of vehicles
• mandatory as of November 2014 for all new vehicles1
Tire pressure monitoring system (TPMS)
• mandatory as of November 2012 for all new types of passenger cars
• mandatory as of November 2014 for all new passenger cars2
Advanced emergency braking system
and lane departure warning
• mandatory as of November 2013 for all new types of heavy commercial vehicles and buses
• mandatory as of November 2015 for all new heavy commercial vehicles and buses2
Brake assist system
• mandatory as of November 2009 for all new types of passenger cars
• mandatory as of November 2011 for all new passenger cars3
Motorcycle anti-lock brake system (ABS)
• mandatory as of January 2016 for all new types of vehicles
• mandatory as of January 2017 for all new vehicles4
EU Electronic stability control (ESC)
• mandatory since 2011 for all new light vehicles5
Tire pressure monitoring system (TPMS)
• mandatory as of September 2007 for all new light vehicles6
USA Electronic stability control (ESC)
• mandatory as of October 2012 for all new types of passenger cars
• mandatory as of October 2014 for all new passenger cars9
Advanced emergency braking system
and lane departure warning
• expected to be mandatory for all new heavy commercial vehicles and buses following the EU decision10
Japan
1) Regulation (EC) No. 661/2009; refers to all vehicles of category M and N. 2) Commission Implementation Regulations for (EC) No. 661/2009: 347/2012 (Advanced Emergency Braking Systems ); 351/2012 (Lane Departure Warning). 3) Regulation (EC) No. 78/2009; refers to passenger cars for maximum 8 passengers plus driver. 4) COM(2010) 542 from October 2010. ABS mandatory for motorcycles with engine capacity of >125 ccm. ABS or combined brake system (CBS) mandatory for engine capacity of ≤125 ccm. 5) Federal Motor Vehicle Safety Standard (FMVSS) No. 126 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 6) Federal Motor Vehicle Safety Standard (FMVSS) No. 138 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 7) CONTRAN 312/2009. 8) Russia Decree 720/2009; refers to passenger cars, buses with a weight of ≤5 t and light trucks with a weight of ≤3.5 t. 9) Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan. 10) Japan expected to adopt EU regulation. Final decision on timing pending. 11) G/TBT/N/KOR/286 and MLTM Notification 2010-631 (Ministry of Land, Transport and Maritime Affairs).
Electronic stability control (ESC)
• mandatory as of January 2012 for all new light vehicles11
Tire pressure monitoring system (TPMS)
• mandatory as of January 2013 for all new passenger cars11
Brazil
Anti-lock brake system (ABS)
• mandatory as of January 2014 for all new passenger cars, after phase-in which began in 20107
South Korea Russia
Electronic stability control (ESC)
• mandatory as of January 2014 for all new types of light vehicles
• mandatory as of January 2016 for all new light vehicles8
Tire pressure monitoring system (TPMS)
• mandatory as of January 2016 for all new types of light vehicles8
Other emerging markets likely to follow EU/USA on ESC regulation
34
Number of road traffic deaths1
Continental Megatrend: Safety
Road Traffic Deaths
Source: Global Status Report on road safety, World Health Organization (WHO) 2013. 1) Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality.
Region of
the Americas
African
Region
123,577
Eastern
Mediterranean
Region
South-East
Asia Region
Western
Pacific Region
European
Region
147,941
191,896
91,815
332,532
334,405
© Continental AG Fact Book 2012 | 23
35 Source: ADAC May 2011.
Deve
lop
me
nt
of
Ac
tive
Sa
fety
Milestones of Active Safety
1960 1970 1980 1990 2000 2010 …….
ABS
Traction Control
ESC
Tire Pressure Monitoring
Lane Departure Warning
Brake Assist
System
Emergency Brake Assist System
Secondary Collision Mitigation
Lane Change Assist System
Night Vision Assist System
Tiredness Warning System
Cross-Way Assist System
Emergency Steering
Assist System
Car2X
Communication
Continental Megatrend: Safety
ADAC – Milestones of Active Safety
36
Continental Megatrend
Future Automotive Trends (1)
Electronic stability control Tire information systems Adaptive cruise control Electronic parking brake Parking sensors Environmental sensors Emergency brake assist Head up display Stereo camera system E-call system … …
Automated parking assist Automated valet parking assist Automated traffic jam assist Automated cruise assist Rear end collision avoidance brake (Zero collision assist) Bottle-neck (Construction site) assist Tight spot assist Drive energy optimizer …
Fully
automated
driving1
Future in Automotive: “Networking of Advanced Driver Assistance Systems (ADAS)”
1) Definition: Monitoring of the system not required; Driver does not need to be able to take over the driving task; Example: Highway driving up to 130 km/h.
Far Future
>2025
Near Future
(2016-2025) Present
© Continental AG Fact Book 2012 | 24
37
Continental Megatrend
Future Automotive Trends (2)
38
Continental Megatrend
Future Automotive Trends Require System Competence
Systems supplier for automated driving, capable of developing and supplying scalable solutions Strong know-how in developing and industrializing ADAS1 and HMI2
Therefore supplier of choice to first launch automated driving systems
Best in Class
Majority of
competition
System
Supplier
Component
Supplier
First to
market
Fast
Follower
Continental
Target
Non automotive competitor
1) Advanced Driver Assistance Systems. 2) Human Machine Interface.
© Continental AG Fact Book 2012 | 25
39
Continental Megatrend: Safety
Winter Tire Regulation1
Austria
Estonia
Finland
Germany
Europe: Winter tires mandatory or situationally mandatory
Latvia
Lithuania
Romania
Sweden
Slovakia
Slovenia
November 1 to April 15 when winter weather conditions prevail
December 1 to end of February
December 1 to end of February
December 1 to end of February
November 1 to April 1
December 1 to March 31 when winter weather conditions prevail
Mandatory when winter weather conditions prevail November 1 to March 31
November 15 to March 15 when winter weather conditions prevail
The snowflake symbol: This symbol can be displayed on a tire if it tests better than a reference standard tire with M+S² marking when ABS-braking on snow.
November 15 to March 31 when roads are snowy/icy
Norway
Mandatory when winter weather conditions prevail
Europe: Winter tires partly mandatory
Czech Republic November 1 to March 31
France Mandatory on certain roads – marked with signs
Italy Switzerland
Drivers may be held liable if they cause an accident with summer tires mounted when winter weather conditions prevail
Canada: Winter tires partly mandatory
1) Source: Continental AG and websites of country ministries, automobile associations and ETRMA (European Tyre and Rubber Manufacturers' Association). 2) Mud + snow. The M+S marking is given by the manufacturer and is not linked to a performance definition.
Mandatory in Québec December 15 to March 15; mandatory on certain roads in the mountains of Canada when winter weather conditions prevail Canada
Turkey
December 1 to April 1 for commercially used vehicles
Bosnia and Herzegovina
November 15 to April 15 when winter weather conditions prevail
Luxembourg
Mandatory when winter weather conditions prevail
Macedonia
November 15 to March 15 when winter weather conditions prevail
Serbia November 1 to April 1
Russia
Mandatory when winter weather conditions prevail
40
1) Similar initiatives in Australia, China, Gulf countries, Israel, South Africa. 2) Regulation (EC) No.1222/2009 of the European Parliament and of the Council
and Commission Regulations (EU) No. 228/2011 and (EU) No. 1235/2011. Also implemented in Norway, Switzerland and Turkey.
Mandatory as of November 2012
Applies to all tires sold. Information to be shown: rolling resistance
(fuel efficiency), wet grip
(braking performance on wet roads) and noise performance
(external rolling noise). Either directly on the tire by means of a label or in some other way
Self-certification policy
EU member states are responsible for market surveillance
Final decision pending
The NHTSA Tire Fuel Efficiency Consumer Information Program proposes to inform consumers about the effect of tires on fuel
efficiency, safety, and durability
The program aims to implement a national tire fuel efficiency rating system for replacement tires, with the information provided to consumers at the point of sale and online
Label proposed by NHTSA3
3) Source: National Highway Traffic Safety Administration (NHTSA). 4) Source: Japan Automobile Tyre Manufacturers Association (JATMA). 5) Source: South Korean Ministry of Knowledge Economy (MKE). 6) Source: National Institute of Metrology, Quality and Technology (INMETRO).
Voluntary since 2010
Introduced by JATMA4
Applies to replacement summer tires for passenger cars; includes information on rolling resistance and wet grip performance
Tires with a grading of A and above for rolling resistance performance are defined as “fuel efficient tires” and are marked with an additional symbol (the lower of the symbols above)
Mandatory as of November 2012
Introduced by MKE5
Applies to all tires sold in South Korea (OE and replacement) for passenger cars and light trucks; includes information on rolling
resistance and wet grip
performance
The label has to be attached to the tread of each tire; for OE tires the information has to be provided in the car manual
Registration of all products required
EU2 USA3 Japan4 South Korea5 Brazil6
Mandatory as of April 2015
Introduced by INMETRO6
Applies to all tires sold (with certain exceptions). Includes information on rolling resistance, wet
grip and noise
performance
Certification to be carried out by a product certification body accredited by INMETRO
Continental Megatrends: Safety and Environment Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil1
© Continental AG Fact Book 2012 | 26
41
Create Value
Global footprint and business optimized
Strong cost focus
Global presence of CVT sustained (SAM/APAC)
Turnaround of PLT business in NAFTA succeeded
Worldwide technology gap to competition closed
Stage 1: 2001 – 2010
Sustain Value
Accelerate global growth (focus on BRIC countries)
Leverage cost position
Improve technology position to establish among “Best In Class”
Stage 2: 2011 – 2015
Enhance Value
Balanced global footprint
Benefit from excellent cost position
Achieve podium position in technology worldwide
Stage 3: 2016 – 2025
Continuous value creation is our driving force!
Continental
Tires: Key Initiatives 2001 – Vision 2025
42
Commercial Segment
Selective growth in commercial specialty tires Support end customer focus with strong service providers
Consumer Segment (2 Wheel)
Capacity increase (i.e. existing plants, greenfields, M&A) Expansion of worldwide presence by eliminating white spots Establish new channel of direct sales to retail level
Specialty Tires
Continental Tires Sales and Growth Pillars – Supporting Elements of our Vision 2025
Ramp up greenfields Continuously invest in R&D and technology Expand retail position Manage brand awareness via communication roadmap
Passenger & Light Truck Tires
Accelerate growth on extended lifecycle solutions Expand retail position Provide a strong manufacturing footprint in BRIC
Truck Tires
© Continental AG Fact Book 2012 | 27
43
Mount Vernon
(US)
Sumter2
(US)
+4
+41
+4
Camaçari
(BR)
1) Will be reached by 2016. 2) Greenfield.
+41
+4
Kaluga2
(RU)
Hefei2
(CN) +0.4
Modipuram
(IN)
+1.3
+0.3
(million units)
Passenger tires
Truck tires
Continental
Additional Tire Production Capacity of 22 Million Units by 2015/16
44
Passenger & Light Truck Tires1
Truck Tires1
Specialty – Commercial2
Specialty – Consumer2
74%
5%
21%
50%
4%
46%
72%
21%
7%
81%
3%
16%
2025
2025
2025 2025
EMEA APAC The Americas
1) Based on unit sales. 2) Based on net sales.
Continental
Tires Vision 2025 – More Balanced Footprint
Note: Inner circle as of 2012. Outer circle vision 2025.
© Continental AG Fact Book 2012 | 28
45
Continental Megatrend: Environment
ContiTech: Engineering Green Value
Carbon-neutral printing blankets
Health-friendly interiors
Lightweight engineering1
Perfect mount for wind power
Eco-friendly drive belts1
Climate-friendly conveyor belts
Emissions-reducing hoses1
Secure wave power
Modules for efficient solar energy
1) Technologies supplied to the automotive industry.
Engineering Green Value: Maxim for our strategic orientation
Technological expertise for customer-specific solutions made from rubber and plastic Sustainable management with long-sighted economic, ecological and social solutions Creating added value for our customers, human beings and the environment
Flexible insulation for energy saving
Water- management
Components for engine downsizing1
46
2012 2017
Fluid Technology Vibration ControlConveyor Belt Group Power Transmission GroupAir Spring Systems CompoundingElastomer Coatings Benecke-Kaliko Group
∑~€25 bn
∑~€30 bn
Continental Megatrend: Environment
ContiTech: Cumulative Market for ContiTech Products
Source: Continental estimates.
© Continental AG Fact Book 2012 | 29
47
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
48
Continental Corporation
Consolidated Key Figures
(in € millions) 2010 2011 2012
Sales 26,046.9 30,504.9 32,736.2 EBITDA 3,587.6 4,228.0 4,854.6 EBIT 1,935.2 2,596.9 3,073.4 EBIT adjusted1 3,040.9 3,522.4
in % of sales1 10.0 10.8 Net interest expense -697.2 -735.5 -406.8 Income tax expense -592.1 -536.2 -698.7 Non-controlling interests -69.9 -83.0 -84.4 NIAT2 576.0 1,242.2 1,883.5 Earnings per share (in €) 2.88 6.21 9.42 R, D & E expense 1,450.4 1,608.7 1,766.2
in % of sales 5.6 5.3 5.4 Capex3 1,296.4 1,711.3 2,019.4
in % of sales 5.0 5.6 6.2 Depreciation & amortization4 1,652.4 1,631.1 1,781.2
in % of sales 6.3 5.3 5.4 thereof impairment5 57.7 20.4 49.9
Free Cash Flow 566.9 490.5 1,652.5 ROCE (average) in % 12.4 16.2 18.1
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Net income attributable to the shareholders of the parent. 3) Capex including software. 4) Excluding write-downs of investments. 5) 2012: Including goodwill impairment of €75.6 mn.
© Continental AG Fact Book 2012 | 30
49 1) Before amortization of intangibles from PPA, consolidation and special effects.
Continental Corporation
Sales and Adjusted EBIT1 by Quarter
Sales €26,047 mn
Sales €30,505 mn Adj. EBIT1 €3,041 mn
Sales €32,736 mn Adj. EBIT1 €3,522 mn
5,997 6,658 6,490 6,903
7,346 7,533 7,714 7,912 8,320 8,187 8,134 8,096
734 751 744 813
875 948
839 861
Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Sales (in € millions) Adj. EBIT (in € millions) 1
50
(in € millions)1 2008 2009 2010 2011 2012 Statement of cash flows
Adjusted EBITDA2 3,001 2,354 3,662 4,247 4,822
Reported EBITDA 2,771 1,591 3,588 4,228 4,855
Net cash interest paid -519 -727 -703 -662 -575 Tax paid -282 -205 -493 -466 -684 Change in net working capital3 275 595 -497 -556 564 Other4 -360 1,173 -46 -256 -376 Cash flow arising from operating activities 1,885 2,427 1,849 2,289 3,785
Cash flow arising from investing activities -1,256 -787 -1,282 -1,798 -2,132
- thereof capex for PPE and intangibles -1,621 -911 -1,324 -1,813 -2,081 Cash flow before financing activities 629 1,640 567 491 1,653
Statement of financial position
Cash and cash equivalents 1,569 1,713 1,471 1,541 2,397 Derivative instruments and interest-bearing investments 64 104 202 249 536 Total indebtedness 12,117 10,713 8,991 8,562 8,253 Net Indebtedness 10,484 8,896 7,317 6,772 5,320
Credit Ratios
Net indebtedness / adj. EBITDA2 3.5x 3.8x 2.0x 1.6x 1.1x
Net cash interest paid coverage (ratio)5 5.8x 3.2x 5.2x 6.4x 8.4x
1) Amounts shown may contain rounding differences. 2) Adjusted EBITDA from 2009 on as defined in syndicated loan. 3) Includes changes in inventories, trade receivables, trade payables and discounted notes. 4) Includes dividends received, at-equity share in earnings of ass. and accrued dividend income from other investments incl. impairment, gains and losses from disposals, other non-cash items as well as changes in pension and post-employment provisions (including effects from transactions regarding contractual trust arrangements [CTA] in 2009) and in other assets and liabilities. 5) Adj. EBITDA to net cash interest paid.
Continental Corporation
Key Historical Financials and Credit Metrics
© Continental AG Fact Book 2012 | 31
51
Continental Corporation
Development of Net Indebtedness and Gearing Ratio 11
,042
9,74
7
9,46
5
8,89
6
8,23
2
8,01
7
8,09
2
7,31
7
7,60
5
7,11
4
7,29
7
6,77
2
6,84
1
6,87
6
6,80
2
5,32
0
210% 186%
226% 219%
145% 133% 138%
118% 117% 104% 103%
90% 85% 83% 77% 58%
Q1 H1 9M YE Q1 H1 9M YE Q1 H1 9M YE Q1 H1 9M YE
2009 2010 2011 2012
Net indebtedness (in € millions)
Gearing ratio (in %)
52
Continental Corporation
Gross Indebtedness by Sources
1) Term loan and revolving facility repayment in Feb. 2013 due to new syndicated loan agreement. 2) Nominal amount $950 mn (exchange rate at Dec. 31, 2012: 1.3191). Note: Bond values and the values for the syndicated loan are nominal values, all others book values.
FY 2009 (in mn €) Syndicated loan
= 86% of gross indebtedness
(€10,713 mn)
FY 2012 (in mn €) Syndicated loan
= 30% of gross indebtedness
(€8,253 mn)
Syndicated loan
Bonds
Various other bank lines
Other indebtedness
Syndicated loan
(Tranche B)Aug 2010;
3,500
Syndicated loan
(Tranche C)Aug 2012;
5,000
Syndicated loan
(Tranche D, Revolver)Aug 2012;
696
Various other bank lines;
900
Other indebtedness;
617
Term loanFeb 2013;
2,137
RevolvingCredit Facility
Feb 2013; 346
Bond Jul 2015
(8.5%); 750
Bond Jan 2016
(6.5%); 625
Bond Sept 2017
(7.5%); 1,000
Bond Oct 2018
(7.125%); 625
Bond Sept 2019 (4.5%); 720
Various other bank lines; 548
Other indebtedness;
1,502
1
1 2
© Continental AG Fact Book 2012 | 32
53
750 625 1,000 625 720352 9070 45
203
460778346 2,137
2013 2014 2015 2016 2017 2018 2019
Continental Corporation
Maturities
Note: CP = Commercial paper. SoR = Sale of receivables (total amount as of Dec. 31, 2012: €936 mn).
750 625 1,000 625 72035290
7045
203
460778 9831,500
2013 2014 2015 2016 2017 2018 2019
Pro forma maturity scheme after renegotiation of syndicated loan (in € millions)
SoR CP
Others 3 3
3 3,4 3
∑1,935
Pro forma Maturity scheme Dec. 31, 2012 (in € millions) before renegotiation
of syndicated loan
RCF2
SoR CP
Others
Term
Loan1,3
3 3 3 3,4 3
3 3
∑820 ∑670 ∑1,203
∑1,589 ∑820
∑2,170 ∑1,203 ∑1,608
∑2,227
1) Amount drawn under term loan at year end 2012: €2,137 mn with original maturity in April 2014. According to new syndicated loan agreement it has been reduced to €1,500 mn and matures in 2016.
2) Amount drawn under the revolving credit facility (RCF) at Dec. 31, 2012. Original volume of RCF has been increased from €2,500 mn to a total volume of €3,000 mn according to new syndicated loan agreement and matures in 2018. Revolving credit facility (RCF) has to be shown as short term debt according to IFRS; RCF matures in 2018 at drawn amount.
3) Note that maturities later than 2017 are bond maturities only; all bond and syndicated loan amounts shown are nominal values; maturities do not add up to gross indebtedness amounting to €8,253 mn at Dec. 31, 2012.
4) Nominal amount $950 mn (exchange rate at Dec. 31, 2012: 1.3191).
(in € millions) FY 11 FY 12
Gross indebtedness 8,562 8,253
Cash 1,541 2,397
Net indebtedness 6,772 5,320
Available credit lines 2,190 2,801
Total liquidity 3,731 5,199
54
Continental Corporation
Purchasing – Production Materials 2012
Oil-based chemicals1
16%
Electronics 20%
Electro-mechanical
components2 17%
Mechanical components3
25%
Others4 15%
Natural rubber
7%
Total production material purchased in 2012: €15.8 bn
Purchasing Contracts
Continental has a wide range of sources for production materials worldwide.
A specific strategy for each production material group is set up and the appropriate supplier panel is selected. This way we ensure the competitiveness and availability of the materials.
For some materials such as certain oil-based chemicals or natural rubber, prices might have a long lead time until they become fully reflected in the cost of our final products.
1) E.g. synthetic rubber, carbon black. 2) E.g. printed circuit boards, connectors, motors. 3) E.g. stamped parts, turned parts, castings. 4) E.g. textiles, plastics.
© Continental AG Fact Book 2012 | 33
55
20%
40%
60%
80%
100%
120%
140%
160%
180%
12/07 12/08 12/09 12/10 12/11 12/12
Continental Corporation
Development of Raw Material Prices
TSR 20 RSS3
Butadiene Styrene Brent Oil Copper
Carbon steel Stainless steel
Aluminium
0%
50%
100%
150%
200%
250%
300%
350%
12/07 12/08 12/09 12/10 12/11 12/12
Source: Bloomberg, January 2013.
56
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 34
57
Market Data
Increasing Installation Rates of Electronic Brake Systems
Source: Continental estimates.
ABS/TCS ESC Total EBS
0%
20%
40%
60%
80%
100%
Europe
North America
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Japan
2010 2011 2012 2013 2014 2015 2016 2017
China
58
Market Data
Installation Rates of Fuel Injection Systems1
Source: Continental estimates. 1) Based on production of diesel and gasoline engines for passenger cars & light vehicles.
0%
20%
40%
60%
80%
100%
Europe North America
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Japan
Gasoline direct injection Gasoline port fuel injection
2010 2011 2012 2013 2014 2015 2016 2017
China
Diesel injection
© Continental AG Fact Book 2012 | 35
59
Market Data
Increasing Installation Rates of Double Clutch Transmissions1
0%
20%
40%
60%
80%
100%
Europe North America
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Japan
2010 2011 2012 2013 2014 2015 2016 2017
China
Source: Continental estimates.
Double clutch transmission
Automated manual transmission
Continuous variable transmission
Automatic transmission
Manual transmission
1) Based on production of transmissions for passenger cars and light vehicles.
60
Market Data
Increasing Installation Rates of Turbocharger in Gasoline Engines
Source: IHS and Continental estimates.
0%
2%
4%
6%
8%
10%
12%
2010 2011 2012 2013 2014 2015 2016 2017
EMEA North and South America Asia China
© Continental AG Fact Book 2012 | 36
61
Market Data
Increasing Installation Rates of Embedded Telematics1
Source: Continental estimates. 1) Different volume scenarios may apply starting 2013 as a result of new legislation.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2010 2011 2012 2013 2014 2015 2016 2017
Europe North America Japan China
62
Market Data
Increasing Installation Rates of Keyless Entry Systems
Source: Strategy Analytics.
Active keyless entry systems Passive keyless entry systems
0%
20%
40%
60%
80%
100% Europe North America
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Japan
2010 2011 2012 2013 2014 2015 2016 2017
China
© Continental AG Fact Book 2012 | 37
63
Market Data
Increasing Installation Rates of Multimedia Systems1
Source: Continental estimates. 1) Navigation stand-alone systems and navigation systems with enriched multimedia functions.
Radio Multimedia
0%
20%
40%
60%
80%
100% Europe North America
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Japan
2010 2011 2012 2013 2014 2015 2016 2017
China
64 Source: Continental estimates. 1) Adaptive cruise control, collision mitigation, lane departure warning, blind spot detection, intelligent lighting, night vision, traffic sign recognition.
Market Data Increasing Installation Rates of Advanced Driver Assistance Systems1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017
Europe NAFTA Japan
© Continental AG Fact Book 2012 | 38
65 Source: Continental estimates.
Market Data
Increasing Installation Rates of Head-Up Displays
0
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 2014 2015 2016 2017
Europe North America Japan China
(in k units)
66
Market Data Production of Light Vehicles 2011 - 2014
Source: IHS and Continental estimates. 1) Estimates for passenger cars and light trucks < 6 tons (including vans). 2) West, Central and East incl. Russia and Turkey.
(in million units) 2011 20121 20131 20141
NAFTA 13.1 15.2 15.5 15.8
South America 4.3 4.3 4.4 4.6
Europe2 20.2 18.8 18.4 18.7
Asia 36.5 40.3 42.5 43.8
Other markets 2.7 2.3 1.7 2.0
Total 76.8 80.9 82.5 84.9
© Continental AG Fact Book 2012 | 39
67
Market Data
Production of Heavy Vehicles 2011 - 2014
(in thousand units) 2011 20121 20131 20141
NAFTA 451 496 521 545
South America 269 185 205 228
Europe2 646 615 599 652
Asia 2,001 1,817 1,967 2,039
Other markets 7 8 9 8
Total 3,374 3,121 3,301 3,472
Source: IHS and Continental estimates. 1) Estimates for trucks > 6 tons. 2) West, Central and East incl. Russia and Turkey.
68
Source: LMC World Tyre Forecast Service and Continental estimates. 1) Estimates. 2) West, Central and East incl. Turkey and Russia.
Market Data
Replacement Passenger, Light Truck and 4x4 Tires 2011 - 2014
(in million units) 2011 20121 20131 20141
NAFTA 252.9 247.9 252.8 260.4
South America 57.5 59.3 61.5 63.8
Europe2 313.2 287.4 296.0 307.9
Asia 265.8 277.6 295.4 315.4
Other markets 103.3 117.6 116.1 118.5
Total 992.7 989.8 1,021.8 1,066.0
© Continental AG Fact Book 2012 | 40
69
Market Data
Replacement Truck Tires 2011 - 2014
(in million units) 2011 20121 20131 20141
NAFTA 20.9 20.5 21.0 21.6
South America 13.0 12.7 13.4 14.2
Europe2 21.9 18.9 19.8 20.7
Asia 65.7 67.3 70.2 74.0
Other markets 16.9 17.2 17.6 17.9
Total 138.4 136.6 142.0 148.4
Source: LMC World Tyre Forecast Service and Continental estimates. 1) Estimates. 2) West, Central and East incl. Turkey and Russia.
70
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 41
71
Automotive Group
Key Figures
(in € millions) 2010 2011 2012
Sales 15,917.0 18,354.2 19,505.1 EBITDA 1,779.1 2,225.8 2,404.6
in % of sales 11.2 12.1 12.3 EBIT 567.9 1,024.5 1,068.8
in % of sales 3.6 5.6 5.5 EBIT adjusted1 1,470.1 1,544.7
in % of sales1 8.0 7.9 Operating Assets (average) 11,512.0 11,427.2 11,438.5
ROCE (average) in % 4.9 9.0 9.3 R, D & E expense 1,227.1 1,367.5 1,495.6
in % of sales 7.7 7.5 7.7 Capex2 739.8 968.5 1,035.9
in % of sales 4.6 5.3 5.3 Depreciation & amortization3 1,211.2 1,201.3 1,335.8
in % of sales 7.6 6.5 6.8 thereof impairment4 35.6 22.8 75.0
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments. 4) 2012: Including goodwill impairment of €75.6 mn.
72
687
279
579 0 1,545
C&S PT I cons. AutomotiveGroup
Adj. EBIT margin (%)
9.7%
4.5%
9.0% 7.9%
7,053
6,135
6,434
116
19,505
C&S PT I cons. AutomotiveGroup
Organic growth (%)
4.8%
1.9%
3.3% 3.4%
Automotive Group
Sales and Adjusted EBIT1 by Division
Automotive Group Sales (in € millions) Automotive Group adj. EBIT1 (in € millions)
1) Before amortization of intangibles from PPA, consolidation and special effects.
-
1
© Continental AG Fact Book 2012 | 42
73
Automotive Group
Sales by Region
Sales in 2011: €18.4 bn
(2010: 26%) Germany29%
Europe (excluding Germany)
26%
NAFTA20%
Asia21%
Other countries
4%
Germany28%
Europe (excluding Germany)
26%
NAFTA20%
Asia22%
Other countries
4%
Sales in 2012: €19.5 bn Sales in 2010: €15.9 bn
Germany26%
Europe (excluding Germany)
24%
NAFTA23%
Asia24%
Other countries
3%
74
Automotive Group
Order Intake (LTS1) in the Automotive Group Totaled €25 bn in 2012
Chassis & Safety Powertrain Interior
Order intake totaled >€8.2 bn Book-to-bill improved 1.2x ADAS with best book-to-bill ratio and major business gains from Japanese and Korean OEM
Order intake >€9.0 bn in 2012 after €8.1 bn in 2011 Book-to-bill improved 1.5x Transmission & Fuel Supply business with best book-to-bill ratio in 2012; Engine Systems with major business gains
Total order intake >€8.2 bn; >25% of order intake is from Asia Book-to-bill 1.3x Instrumentation & Driver HMI and Body & Security with best book-to-bill in 2012
Order intake Powertrain 2010 - 2012 Order intake Interior 2010 - 2012 Order intake Chassis & Safety 2010 - 2012
5.2
7.4
>8.2
0.9
1.1 1.2
2010 2011 2012
LTS (bn €) Book-to-bill
1) Life-time sales.
7.9 8.1
>9.0
1.71.4
1.5
2010 2011 2012
LTS (bn €) Book-to-bill
6.1
7.4
>8.2
1.1 1.2 1.3
2010 2011 2012
LTS (bn €) Book-to-bill
© Continental AG Fact Book 2012 | 43
75
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group – 1. Chassis & Safety Division VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
76
Chassis & Safety
Business Units and Key Products
Hydraulic electronic control units (HECU)
ABS ESC Software functions
Adaptive cruise control Regenerative brake
system Active front steering Hill start assist,
hill descent control Deflation detection
system Hydraulic brake assist Trailer stability assist
Calipers and discs Drum brakes Brake hoses Boosters Tandem master cylinders Electric parking brakes Washer systems Brake pressure regulators Electric vacuum pump
Wheel speed sensors Engine/transmission speed and position sensors Chassis sensors Sensor clusters Airbag control units Crash sensors Satellite for electric vehicle Pedestrian protection Occupant classification system (OCS)
Driver assistance systems
Adaptive cruise control Emergency brake
assist Lane departure warning Lane change support Blind spot detection Traffic sign recognition Intelligent head lamp
control Rear cross traffic alert Driver assistance sensors
Camera Radar Lidar
Chassis electronics Electronic components (1st tier customer) Suspension systems
Electronic Brake
Systems Hydraulic Brake
Systems
Passive Safety &
Sensorics
Advanced Driver
Assistance Systems
Chassis
Components
© Continental AG Fact Book 2012 | 44
77
Chassis & Safety
Locations Worldwide
63 sites for production and R&D in 20 countries. Divisional headquarters in Frankfurt/Main, Germany.
India ▐ Bangalore ▐ Gurgaon
(New Delhi) ▐ Manesar
Brazil ▐ Salto ▐ Varzea Paulista
China ▐ Shanghai ▐ Jiading TC ▐ Jiading CASS ▐ Changchun I ▐ Changchun II ▐ Changshu ▐ Heihe ▐ Lian Yun Gang
Mexico ▐ Ayala Morelos (Cuautla) ▐ Guadalajara ▐ Las Colinas ▐ Silao
USA ▐ Auburn Hills ▐ Brimley ▐ Culpeper ▐ Henderson ▐ Morganton
Malaysia ▐ Penang
Japan ▐ Asahi ▐ Hamakita ▐ Hiroshima ▐ Monbetsu ▐ Yokohama
South Korea ▐ Cheongwon ▐ Icheon
Philippines ▐ Calamba ▐ Manila
▐ Korbach ▐ Lindau ▐ Nuremberg ▐ Regensburg ▐ Rheinböllen ▐ Schwalbach ▐ Ulm
Europe
France ▐ Boussens ▐ Toulouse Hungary ▐ Budapest ▐ Veszprém Italy ▐ Cairo Montenotte
Belgium ▐ Mechelen Czech Republic ▐ Adrspach ▐ Frenstat ▐ Jicin
Portugal ▐ Palmela Romania ▐ Iasi ▐ Sibiu ▐ Timişoara Slovakia ▐ Zvolen
Sweden ▐ Arvidsjaur UK ▐ Ebbw Vale
▐ Production
Germany ▐ Alzenau ▐ Bebra ▐ Frankfurt ▐ Gifhorn ▐ Hanover ▐ Ingolstadt ▐ Karben
▐ Joint Ventures < 50%
▐ Jiading SABS
78
Chassis & Safety
Key Figures
(in € millions) 2010 2011 2012
Sales 5,775.4 6,510.8 7,052.5 EBITDA 891.7 982.3 973.7
in % of sales 15.4 15.1 13.8 EBIT 569.0 661.9 638.5
in % of sales 9.9 10.2 9.1 EBIT adjusted1 719.0 686.8
in % of sales1 11.0 9.7 Operating Assets (average) 3,997.0 4,024.7 4,097.4
ROCE (average) in % 14.2 16.4 15.6 R, D & E expense 422.3 463.1 511.7
in % of sales 7.3 7.1 7.3 Capex2 247.1 327.1 383.8
in % of sales 4.3 5.0 5.4 Depreciation & amortization3 322.7 320.4 335.2
in % of sales 5.6 4.9 4.8 thereof impairment 3.8 1.6 -2.0
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments.
© Continental AG Fact Book 2012 | 45
79
Chassis & Safety
Sales by Region
Sales in 2011: €6.5 bn
Germany30%
Europe (excluding Germany)
24%
NAFTA19%
Asia23%
Other countries
4%
Sales in 2010: €5.8 bn Sales in 2012: €7.1 bn
Germany29%
Europe (excluding Germany)
23%
NAFTA19%
Asia25%
Other countries
4%
Germany27%
Europe (excluding Germany)
21%
NAFTA21%
Asia28%
Other countries
3%
80
Chassis & Safety
Market Position of Top 3 in Electronic Brake Systems 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch TRW
Continental
Bosch TRW
Continental
Bosch TRW
Continental
Advics Bosch
Continental
Bosch TRW
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
© Continental AG Fact Book 2012 | 46
81
Chassis & Safety
Market Position of Top 3 in Foundation Brake Systems 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch TRW
Continental
Akebono TRW
Continental
Bosch TRW
Continental Advics Mando
Continental
Akebono TRW
All others
All others
All others
All others
All others
Market share of all suppliers other than top 3
82
Chassis & Safety
Market Position of Top 3 in Actuation 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch TRW
Continental
Bosch TRW
Continental
Bosch TRW
Continental
Advics Bosch
Continental
Bosch TRW
All others
All others
All others
All others
All others
Market share of all suppliers other than top 3
© Continental AG Fact Book 2012 | 47
83
Chassis & Safety
Market Position of Top 3 in Airbag Electronics 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Autoliv Bosch
Continental
Autoliv TRW
Continental
Autoliv TRW
Continental
Bosch Denso
Continental
Autoliv Bosch
All others
All others
All others
All others
All others
Market share of all suppliers other than top 3
84
Chassis & Safety Market Position of Top 3 in Advanced Driver Assistance Systems 2012
Source: Continental estimates.
Continental
Bosch Delphi
Autoliv Delphi Valeo
Denso Hella Honda Elesys
Continental
Delphi Denso
Europe
North America
Asia/Pacific
World All others
Continental
All others
All others
Continental
All others
Market share of all suppliers other than top 3
© Continental AG Fact Book 2012 | 48
85
Chassis & Safety Growing Sales Volume for Electronic Brake Systems
Source: Continental estimates.
ABS/TCS
ESC
0
5
10
15
20
25 Europe
Audi A3 BMW 1 Series / 3 Series Ford Focus / Fiesta Mercedes C Class Opel Astra / Zafira Peugeot 208 / C3 Renault Megane / Scenic Skoda Octavia Toyota Yaris Volvo S60/V40/XC60 VW Golf / Passat
NAFTA
BMW X3 Chevrolet Cruze / Equinox Chrysler Caliber Succ RAM 1500 Ford Explorer/Escape/Focus/Fusion Honda Odyssey Jeep Wrangler RAM 1500 VW Jetta/New Beetle/New Passat
Asia
Daewoo Orlando / Cruze Ford Ecosport / Focus Succ. GM Buick XT/GT Honda Life (succ) / N One Mazda Axela / CX-5 / Demio PSA 206(207) Skoda Octavia Suzuki Wagon R / Palette Mitsubishi Lancer / Outlander / RVR VW Lavida / Bora / Passat / Sagitar
Model Selection
(in million units)
86
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group – 2. Powertrain Division VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 49
87
Powertrain
Business Units and Key Products
Hybrid Electric
Vehicle
Systems/components for hybrid and electric vehicle applications Power electronics Electric motors Battery systems Energy management Power net systems
Engine management systems and fuel components for Diesel piezo common
rail injection systems Gasoline piezo direct
injection Gasoline solenoid
direct injection Gasoline port injection Liquefied petroleum
gas (LPG) and compressed natural gas (CNG)
Aftertreatment Engine management systems /aftertreatment products for commercial vehicle applications Turbocharger
Engine Systems
Fuel Supply
Fuel supply units Fuel level sensors Fuel pumps Control electronics for fuel pumps Functional components
Sensors &
Actuators
Actuators for powertrain applications: electronic throttle control, air control valve, general purpose actuator, variable valve timing, electric pumps, exhaust gas recirculation, digital linear actuators
Exhaust and emission sensors: temperature, exhaust gas, fluid, evaporation control Engine and transmission sensors: pressure, combustion, mass air flow, position Door handle sensors
Transmission
Control units for Automatic
transmission Double clutch
transmission Automated manual
transmission Continuously variable
transmission Control units for all wheel drive applications Transfer cases Differentials Limited slip coupling Clutch systems
88
Powertrain
Locations Worldwide
52 sites for production and R&D in 20 countries. Divisional headquarters in Regensburg, Germany.
India ▐ Bangalore ▐ Manesar ▐ Pune
Brazil ▐ Guarulhos ▐ Salto
China ▐ Changchun ▐ Shanghai ▐ Tianjin ▐ Wuhu
Mexico ▐ Ayala Morelos (Cuautla) ▐ Guadalajara ▐ Juarez
Malaysia ▐ Penang
Japan ▐ Yokohama
South Korea ▐ Cheongwon ▐ Icheon
Australia ▐ Bundoora
▐ Limbach-Oberfrohna/Stollberg ▐ Lohmar ▐ Nuremberg ▐ Regensburg ▐ Roding ▐ Schwalbach
Europe France ▐ Boussens ▐ Foix ▐ Toulouse Hungary ▐ Budapest Italy ▐ Pisa
Czech Republic ▐ Adrspach ▐ Brandys ▐ Frenstat ▐ Trutnov
Romania ▐ Brasov ▐ Iasi ▐ Sibiu ▐ Timişoara UK ▐ Birmingham
▐ Production, R&D
Germany ▐ Bebra ▐ Berlin ▐ Dortmund ▐ Gifhorn ▐ Grünstadt ▐ Karben
▐ Joint Ventures < 50%
Philippines ▐ Calamba
Canada ▐ Chatham
Thailand ▐ Amata City
Russia ▐ Kaluga
USA ▐ Auburn Hills ▐ Dearborn ▐ Deer Park ▐ Newport News ▐ Seguin
© Continental AG Fact Book 2012 | 50
89
Powertrain
Key Figures
(in € millions) 2010 2011 2012
Sales 4,730.8 5,842.0 6,134.8 EBITDA 268.2 484.7 590.2
in % of sales 5.7 8.3 9.6 EBIT -198.1 31.3 29.5
in % of sales -4.2 0.5 0.5 EBIT adjusted1 240.8 278.6
in % of sales1 4.1 4.5 Operating Assets (average) 3,112.2 3,027.4 3,028.1
ROCE (average) in % -6.4 1.0 1.0 R, D & E expense 396.9 454.9 535.9
in % of sales 8.4 7.8 8.7 Capex2 301.5 393.7 395.0
in % of sales 6.4 6.7 6.4 Depreciation & amortization3 466.3 453.4 560.7
in % of sales 9.9 7.8 9.1 thereof impairment4 36.6 8.5 75.9
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments. 4) 2012: Including goodwill impairment of €75.6 mn.
90
Powertrain
Sales by Region
Sales in 2011: €5.8 bn
(2010: 26%)
Sales in 2012: €6.1 bn Sales in 2010: €4.7 bn
Germany26%
Europe (excluding Germany)
31%
NAFTA20%
Asia22%
Other countries
1%
Germany23%
Europe (excluding Germany)
29%
NAFTA24%
Asia23%
Other countries
1%
Germany24%
Europe (excluding Germany)
33%
NAFTA21%
Asia21%
Other countries
1%
© Continental AG Fact Book 2012 | 51
91
Powertrain
Market Position for Diesel Injection Systems1 2012
Europe
Asia/Pacific2
World
Continental
Bosch Delphi
Bosch Delphi Denso
Continental
Bosch Delphi
All others
Market share of all suppliers other than top 3
Continental
All others
All others
Source: Continental estimates. 1) For passenger cars & light trucks. 2) Japan, South Korea, China, India, Thailand.
92
Powertrain
Market Position for Gasoline Injection Systems1 2012
Europe
North America
South America
Asia/Pacific2
World
Continental
Bosch Hitachi
Continental
Bosch Denso
Bosch Delphi Magneti Marelli
Continental
Bosch Denso
Continental
Bosch Denso
Market share of all suppliers other than top 3 Source: Continental estimates. 1) For passenger cars & light trucks. 2) Japan, South Korea, China, India, Thailand.
All others
All others
All others
All others
Continental
All others
© Continental AG Fact Book 2012 | 52
93
Powertrain
Market Position for Transmission Control Units1 2012
Continental
Bosch
Continental
Aisin Bosch
Continental
Aisin Hitachi
Continental
Aisin Bosch
Europe
North America
Asia/Pacific2
World All others
All others
All others
All others
Market share of all suppliers other than top 3 Source: Continental estimates. 1) For passenger cars & light trucks. 2) Japan, South Korea, China, India.
94
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group – 3. Interior Division VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 53
95
Interior
Business Units and Key Products
Radios
Multimedia systems
Connectivity & telematics
Software & special solutions
Infotainment &
Connectivity
Body control modules
Access control systems
Door systems
Seat comfort systems
Power closures
Tire information systems
Gateways
Energy management
Exterior light control units
Intelligent antenna modules
Body & Security
Tachographs, telematics & services
Visual & haptical HMI
Powertrain control
Chassis-, body- & transmission electronics
Wear parts, spare parts, services and multi-brand vehicle diagnosis for the independent aftermarket
Original equipment services
Commercial Vehicles &
Aftermarket
Instrument clusters
Secondary displays
Head-up displays
Climate controls
Control panels
Central input devices
Cockpit modules
Instrumentation &
Driver HMI
96
Interior
Locations Worldwide
65 sites for production and R&D in 24 countries. Divisional headquarters in Regensburg, Germany.
India ▐ Bangalore ▐ Chennai ▐ Haryana ▐ Pune Brazil
▐ Gravatai ▐ Guarulhos
China ▐ Changchun ▐ Jinan ▐ Najing ▐ Shanghai ▐ Tianjin ▐ Wuhu
Mexico ▐ Cuautla ▐ Guadalajara ▐ Nogales ▐ Tlaquepaque
USA ▐ Auburn Hills ▐ Deer Park ▐ Newport News ▐ Seguin ▐ Troy
Malaysia ▐ Penang
Japan ▐ Yokohama
South Korea ▐ Cheongwon-gun ▐ Gyeonggi-do ▐ Icheon-city
Philippines ▐ Manila
▐ Markdorf ▐ Nuremberg ▐ Regensburg ▐ Schwalbach am Taunus ▐ Villingen-Schwenningen ▐ Wetzlar
Europe France ▐ Boussens ▐ Foix ▐ Hambach ▐ Rambouillet ▐ Toulouse Hungary ▐ Budapest
Austria ▐ Vienna Czech Rep. ▐ Adršpach ▐ Brandŷs ▐ Frenštát
Romania ▐ Iasi ▐ Sibiu ▐ Timişoara Spain ▐ Rubi
Switzerland ▐ Rüthi Sweden ▐ Arvidsjaur UK ▐ Birmingham
Germany ▐ Babenhausen ▐ Bebra ▐ Dortmund ▐ Ingolstadt ▐ Karben
▐ Manaus ▐ Resende ▐ São Bernardo
do Compo
Tunesia ▐ Bizerte
Singapore ▐ Singapore
Australia ▐ Bundoora ▐ Campbellfield
Thailand ▐ Bangkok
Russia ▐ Chistopol ▐ Kaluga
© Continental AG Fact Book 2012 | 54
97
Interior
Key Figures
(in € millions) 2010 2011 2012
Sales 5,518.1 6,110.7 6,434.2 EBITDA 619.1 758.8 840.6
in % of sales 11.2 12.4 13.1 EBIT 197.0 331.2 400.8
in % of sales 3.6 5.4 6.2 EBIT adjusted1 510.2 579.3
in % of sales1 8.4 9.0 Operating Assets (average) 4,402.8 4,375.1 4,313.0
ROCE (average) in % 4.5 7.6 9.3 R, D & E expense 407.9 449.6 448.0
in % of sales 7.4 7.4 7.0 Capex2 191.3 247.7 257.1
in % of sales 3.5 4.1 4.0 Depreciation & amortization3 422.1 427.6 439.8
in % of sales 7.6 7.0 6.8 thereof impairment -4.8 12.7 1.1
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments.
98
Interior
Sales by Region
Sales in 2011: €6.1 bn
(2010: 26%)
Sales in 2012: €6.4 bn Sales in 2010: €5.5 bn
Germany31%
Europe (excluding Germany)
24%
NAFTA19%
Asia18%
Other countries
8%
Germany31%
Europe (excluding Germany)
24%
NAFTA19%
Asia19%Other
countries7%
Germany30%
Europe (excluding Germany)
21%
NAFTA23%
Asia20%Other
countries6%
© Continental AG Fact Book 2012 | 55
99
Interior
Market Position for Body & Security 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Hella Lear
Continental
Denso Lear
Continental
Delphi Hella
Continental
Denso Omron
Continental
Denso Lear
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
100
Interior
Market Position for Instrumentation & Driver HMI1 2012
Source: Continental estimates. 1) Excluding cockpit modules.
Europe
North America
South America
Asia/Pacific
World
Continental
JCI Magneti Marelli
Continental
Denso Nippon Seiki
Continental
Denso Magneti Marelli
Continental
Denso Nippon Seiki
Continental
Denso Nippon Seiki
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
© Continental AG Fact Book 2012 | 56
101
Interior
Market Position for Infotainment & Connectivity 2012
Source: Continental estimates.
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch Harman
Alpin Denso Panasonic
Bosch Delphi Panasonic
Clarion Denso Panasonic
Continental
Harman Panasonic
Market share of all suppliers other than top 3
All others
All others
Continental
All others
Continental
All others
Continental
All others
102
Interior
Market Position for Commercial Vehicle1 2012
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch Stoneridge
Continental
Phoenix Stoneridge
Continental
PST Stoneridge
Continental
DETC Yazaki
Continental
Stoneridge Yazaki
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
Source: Continental estimates. 1) Market shares for commercial vehicle business as described in BU structure excluding automotive aftermarket.
© Continental AG Fact Book 2012 | 57
103
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
104
Rubber Group
Key Figures
(in € millions) 2010 2011 2012
Sales 10,152.5 12,176.6 13,261.7 EBITDA 1,851.5 2,041.5 2,521.7
in % of sales 18.2 16.8 19.0 EBIT 1,413.1 1,612.8 2,077.8
in % of sales 13.9 13.2 15.7 EBIT adjusted1 1,640.4 2,064.1
in % of sales1 13.5 15.8 Operating Assets (average) 4,112.1 4,640.3 5,590.7
ROCE (average) in % 34.4 34.8 37.2 R, D & E expense 223.3 241.2 270.6
in % of sales 2.2 2.0 2.0 Capex2 555.8 747.7 981.2
in % of sales 5.5 6.1 7.4 Depreciation & amortization3 438.4 428.7 443.9
in % of sales 4.3 3.5 3.3 thereof impairment 22.1 -2.4 -25.1
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments.
© Continental AG Fact Book 2012 | 58
105
444
1,6200
2,064
CT Tires cons. Rubber Group
Adj. EBIT margin (%)12.1%
17.0% 15.8%
Rubber Group
Sales and Adjusted EBIT1 by Division
Rubber Group Sales (in € millions) Rubber Group adj. EBIT1 (in € millions)
1) Before amortization of intangibles from PPA, consolidation and special effects.
1
3,712
9,665
115
13,262
CT Tires cons. Rubber Group
Organic growth (%)
1.7%
7.0% 5.5%-
106
Rubber Group
Sales by Region
Sales in 2011: €12.2 bn
(2010: 26%)
Sales in 2012: €13.3 bn Sales in 2010: €10.2 bn
Germany25%
Europe (excluding Germany)
43%
NAFTA17%
Asia8%Other
countries7%
Germany24%
Europe (excluding Germany)
43%
NAFTA18%
Asia9%Other
countries6%
Germany22%
Europe (excluding Germany)
40%
NAFTA20%Asia
10%Other countries
8%
© Continental AG Fact Book 2012 | 59
107
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group – 1. Tires Division VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
108
Passenger
and Light
Truck Tires
Original
Equipment
Passenger
and Light
Truck Tires
Replacement
EMEA
Passenger
and Light
Truck Tires
Replacement
The Americas
Passenger
and Light
Truck Tires
Replacement
APAC
Commercial Vehicle Tires Two Wheel
Tires
Truck Tires
EMEA
Truck Tires
The Americas
Truck Tires
APAC
Commercial
Specialty Tires
Tires for:
Compact, medium-size and full-size cars 4x4 and SUVs Vans, light trucks and RVs
Tires and services for customer segments:
Goods People Construction
Tires and services for the applications:
Material handling
Multi-purpose
Earthmover
Tires and Tubes for:
Bicycles: Race, Mountainbike, City/Trekking Motorcycles: scooters, big bikes >150cc, bikes <150cc
Extended mobility systems:
SSR Minispares Conti KomfortKit Conti MobilityKit ContiSeal
NVH engineering services
1) Except NAFTA, Colombia, Peru. 2) Trademark rights for Malaysia, Singapore and Brunei. 3) Only in Australia. 4) Only in People’s Republic of China.
Tires
Business Units and Tire Brands
Astrum Blue
1 4
3
108
2 2
© Continental AG Fact Book 2012 | 60
109
Tires
Key Figures
(in € millions) 2010 2011 2012
Sales 7,165.4 8,717.7 9,665.0 EBITDA 1,383.3 1,526.5 1,974.0
in % of sales 19.3 17.5 20.4 EBIT 1,043.5 1,195.7 1,635.4
in % of sales 14.6 13.7 16.9 EBIT adjusted1 1,195.2 1,620.0
in % of sales1 13.7 17.0 Operating Assets (average) 3,051.4 3,561.5 4,430.8
ROCE (average) in % 34.2 33.6 36.9 R, D & E expense 162.6 176.1 195.1
in % of sales 2.3 2.0 2.0 Capex2 455.5 637.1 830.2
in % of sales 6.4 7.3 8.6 Depreciation & amortization3 339.8 330.8 338.6
in % of sales 4.7 3.8 3.5 thereof impairment 20.0 -3.2 -25.1
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments.
110
Tires
Sales by Region
Sales in 2011: €8.7 bn
(2010: 26%)
Sales in 2012: €9.7 bn
Germany18%
Europe (excluding Germany)
46%
NAFTA22%
Asia7%Other
countries7%
Germany18%
Europe (excluding Germany)
43%
NAFTA24%Asia
8%Other countries
7%
© Continental AG Fact Book 2012 | 61
111
Source: Continental estimates. 1) Replacement. 2) West and Central. 3) incl. Central America/Caribbean markets.
Passenger and Light Truck Tires Market Share for Passenger and Light Truck Tires1 2012
Europe2
North America3
Continental
Goodyear/Sumitomo Michelin
Bridgestone/Firestone Goodyear/Sumitomo Michelin
All others
Continental
All others
Market share of all suppliers other than top 3
112
Source: Continental estimates. 1) Replacement. 2) West and Central, incl. Turkey.
Commercial Vehicle Tires Market Share for Truck Tires1 2012
Europe2
North America
Bridgestone/Firestone Goodyear/Sumitomo Michelin
Bridgestone/Firestone Goodyear/Sumitomo Michelin
Continental
All others
Continental
All others
Market share of all suppliers other than top 3
© Continental AG Fact Book 2012 | 62
113 1) Until 2004 consolidated in CVT Division.
Passenger and Light Truck Tires
Worldwide Passenger and Light Truck Tire Production 2012
(in million units)
Mount Vernon
San Luis Potosí
Cuenca
Camaçari
Port Elizabeth
Alor Star /
Petaling Jaya1
10
8
2 5
4
3
(US)
(MX)
(EC)
(BR)
(ZA)
(MY)
Hefei
(CN)
2
114
Lousado
16
Sarreguemines
10
Aachen
9
Korbach
10
Passenger and Light Truck Tires
European Passenger and Light Truck Tire Production 2012
Otrokovice
20
Puchov
11
Timişoara
14
(in million units)
(PT)
(DE)
(FR)
(RO)
(CZ)
(SK)
© Continental AG Fact Book 2012 | 63
115
1) Production of bias and radial tires. 2) Including deliveries to JV partners.
Commercial Vehicle Tires
Worldwide Truck Tire Production1 2012
(in million units)
Mount Vernon2
Cuenca Camaçari
Port Elizabeth
Petaling Jaya 0.2
0.2
Otrokovice Puchov
(US)
(EC) (BR)
(ZA)
(CZ) (SK)
(MY)
0.5
2.8 0.7 2.2
0.1
0.5
Modipuram
(IN)
116
4%
12%
14%
24%
27%
33%
35%
35%
41%
59%
64%
95%
100%
100%
0% 20% 40% 60% 80% 100% 120%
India
China
Malaysia
Romania
Ecuador
South Africa
Slovakia
Brazil
Czech Republic
Mexico
Portugal
USA
France
Germany
Tires
Cost of Labor at Continental Manufacturing Sites1
1) Based on average FX rates 2012.
© Continental AG Fact Book 2012 | 64
117
Passenger and Light Truck Tires Product Mix Improvement
Winter tires worldwide1
1) OE & replacement (excl. all-season tires). 2) All summer tires and all-season tires with rim sizes of at least 17 inches.
High performance summer tires worldwide2
19 17
24
29
32
-2.6%
-10.2%
40.5%
21.6%
13.2%
2008 2009 2010 2011 2012
(in million units)
19 19 21 21 21
4.1% 1.2%
6.8% 3.8%
0.7%
2008 2009 2010 2011 2012
(in million units)
118
Passenger and Light Truck Tires
Unit Sales 2007 - 2012
1) 2007 Asia included in Europe. 2) North America; since 2007 including Latin America.
1 2
84 8475
86 89 84
24 23
20
2529
30
4
4
44 8
108 111
99
114123 122
2007 2008 2009 2010 2011 2012
(in million units)
Europe (incl. Row) The Americas Asia/Pacific
© Continental AG Fact Book 2012 | 65
119 1) 2007 Asia included in Europe. 2) North America; since 2007 including Latin America.
Commercial Vehicle Tires Unit Sales 2007 - 2012
1 2
4.33.7
2.32.8 3.1 2.9
2.9
2.8
2.6
3.23.5 3.5
0.2
0.2
0.3
0.4 0.7
7.26.7
5.1
6.3
7.0 7.1
2007 2008 2009 2010 2011 2012
(in million units)
Europe (incl. Row) The Americas Asia/Pacific
120
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group – 2. ContiTech Division VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 66
121
ContiTech
Business Units and Key Products
Customized compounds for high-quality elastomer products, functional parts, components and systems Testing services
Compounding Technology
Power Transmission Group
V-belts Multiple V-ribbed belts Timing belts Flat belts Belt drive systems
Vibration Control
Rubber-to-metal bonded products Hydromounts Precision molded parts Blow molded parts Plastic parts
Fluid Technology
Hoses / hose lines for: Air conditioning Fuel- & exhaust systems Heating / cooling systems Powertrain Steering / chassis Turbocharger Industrial applications
Benecke-Kaliko Group
Foils and synthetic leather products for automotive interior trim
Conveyor Belt Group
Steel cord / fabric belts Special-purpose belts Conveyor belt components Service material
Air Spring Systems
Air suspension systems for buses, trucks and rail vehicle technology Air actuators for pneumatics/ air springs for vibration isolation Compensators
Elastomer Coatings
Coated fabrics Printing blankets / plates Diaphragms /- materials Gasholder diaphragms Collapsible tanks Fuel tanks Concertina walls
122
ContiTech
Locations Worldwide
66 sites for production and R&D in 19 countries. Divisional headquarters in Hanover, Germany.
India ▐ Calcutta ▐ New Delhi
China ▐ Changchun ▐ Changshu ▐ Changzhi ▐ Ninghai ▐ Shanghai ▐ Tianjin ▐ Zhangjiagang
Brazil ▐ Ponta Grossa
Mexico ▐ Montemorelos ▐ Monterrey ▐ San Luis Potosí ▐ Tlalnepantla
USA ▐ Auburn Hills ▐ Collierville ▐ Houston ▐ Somersworth
Japan ▐ Kurashiki
South Korea ▐ Busan ▐ Chonan ▐ Jeonju ▐ Seonghwan-Eup
Europe Hungary ▐ Makó ▐ Nyiregyhaza ▐ Szeged ▐ Vác Romania ▐ Carei ▐ Nadab ▐ Timişoara
Czech Rep. ▐ Chomutov
France ▐ Andrezieux ▐ Gennevilliers ▐ Le Chambon ▐ Lyon Greece ▐ Vólos
▐ Production, R&D
Germany ▐ Aachen ▐ Bad Blankenburg ▐ Dannenberg ▐ Eislingen ▐ Hamburg ▐ Hanover ▐ Hann. Münden ▐ Hedemünden ▐ Herzogenaurach
▐ Cooperation, Joint Ventures ≤ 50%
Chile ▐ Santiago de Chile
▐ Hoppegarten ▐ Karben ▐ Korbach ▐ Moers ▐ Northeim ▐ Oedelsheim ▐ Oppenweiler ▐ Salzgitter ▐ Waltershausen
Russia ▐ Moscow
Serbia ▐ Subotica ▐ Veliki Crljeni Slovakia ▐ Dolné Vestenice ▐ Partizanske ▐ Puchov
Turkey ▐ Bursa UK ▐ Ashington ▐ Grimsby ▐ Thetford ▐ Wigan
© Continental AG Fact Book 2012 | 67
123
ContiTech Key Figures
(in € millions) 2010 2011 2012
Sales 3,095.3 3,583.1 3,711.8 EBITDA 468.2 515.0 547.7
in % of sales 15.1 14.4 14.8 EBIT 369.6 417.1 442.4
in % of sales 11.9 11.6 11.9 EBIT adjusted1 445.2 444.1
in % of sales1 12.4 12.1 Operating Assets (average) 1,060.7 1,078.8 1,159.9
ROCE (average) in % 34.8 38.7 38.1 R, D & E expense 60.7 65.0 75.5
in % of sales 2.0 1.8 2.0 Capex2 100.3 110.6 151.0
in % of sales 3.2 3.1 4.1 Depreciation & amortization3 98.6 97.9 105.3
in % of sales 3.2 2.7 2.8 thereof impairment 2.1 0.8 0.0
1) EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 2) Capex including software. 3) Excluding write-downs of investments.
124
ContiTech
Sales by Region
Sales in 2011: €3.6 bn
(2010: 26%)
Sales in 2012: €3.7 bn Sales in 2010: €3.1 bn
Germany38% Europe
(excluding Germany)
34%
NAFTA7%
Asia14%
Other countries
7%
Germany38% Europe
(excluding Germany)
35%
NAFTA8%
Asia13%Other
countries6%
Germany34%
Europe (excluding Germany)
32%
NAFTA10%Asia
16%Other countries
8%
© Continental AG Fact Book 2012 | 68
125
ContiTech A Leading Global Supplier in its Business Units
Product line
Fluid Technology Automotive hoses and hose lines
Oil and marine
Conveyor Belt Group Conveyor belts
Power Transmission Group Multiple V-ribbed belts and timing belts
Benecke-Kaliko Group Foils for automotive interiors
Vibration Control Chassis sealing system
Engine mounts for trucks
Compounding Compounds
Air Spring Systems Truck and bus air springs
Railway systems
Elastomer Coatings Printing blankets
Life raft and protective gear materials
126
ContiTech
Sales and Employees 2012
1) Including other operations. 2) Including service functions.
Sales (in € millions) Employees
Fluid Technology 1,358 14,369
Conveyor Belt Group 616 3,846
Power Transmission Group 402 2,562
Benecke-Kaliko Group 357 1,747
Vibration Control 321 2,232
Compounding 305 777
Air Spring Systems 266 1,462
Elastomer Coatings 110 611
ContiTech 3,7121 28,2102
© Continental AG Fact Book 2012 | 69
127
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
128
Sustainability at Continental
Our Policies and Guidelines
ESH1 Policy – implements worldwide the responsibility for protecting the environment
Code of Conduct – personal ethics, conflicts of interest OUR BASICS – the guidelines, codex and basic principles of our business activities
OUR BASICS Our corporate guidelines
Corporate Governance Policy – to further the responsible management of the company focused on value creation
Risk Report – overview of our Risk Management
CSR Guideline Our basic values and principles
Environmental Responsibility Social Responsibility Corporate Governance
1) “Environment”, “Security, Safety” and “Health”.
© Continental AG Fact Book 2012 | 70
129
183 205
244
83.5 73.6 76.5 67.7
67.0 62.6 63.9 62.3
2009 2010 2011 2015
Waste production1
thousand tonnes per tonne of product (kg)
recycling per tonne of product (kg)
11.4
13.7 14.2
5.2 4.9 4.4 3.9
2009 2010 2011 2015
Water consumption1
mn m per tonne of product (m )
19.1 22.2
23.9
8.7 8 7.5 6.6
2009 2010 2011 2015
Energy consumption1
mn GJ (gigajoule) per tonne of product (GJ)
0.38 0.47 0.52
1.99 2.21
2.41
1.08 0.97 0.92 0.8
2009 2010 2011 2015
CO2 emissions1 (independently verified by KPMG)
direct (mn tonnes) indirect (mn tonnes)
per tonne of product (tonne)
Environmental Responsibility
Corporate Environmental Key Performance Indicators
1) Changes to previous figures are based on changes in the scope of the survey. 2) Continental targets.
2
2
2
2
3 3
130
Social Responsibility – Responsible Employer
Equal Opportunity
Diversity Project to support women
A talent pool which incorporates all corporate divisions The formation of career support networks Female mentoring program Female ambassadors Working time models such as part-time, home office, job sharing Support with combining job and family The specification of target corridors for the proportion of women in management functions in the future
Demographics Program
A holistic concept designed to address the far-reaching changes as a result of the expected demographic trend focuses on four topics:
workplace design maintaining employee health for a longer working life targeted qualification measures motivation for a longer professional life
Award of the Apriori-business solution AG for Continental’s “Demography Management”
© Continental AG Fact Book 2012 | 71
131
Continental is a participant of the United Nations Global Compact. We have thus committed ourselves to its ten principles in the areas of human rights, labor, environment and anti-corruption.
The Charter of Diversity recognizes diversity as an opportunity. The signatory companies commit to diversity, fairness and mutual respect. The aim is to create a working environment that is free of prejudice and discrimination.
The Luxembourg Declaration on Workplace Health Promotion (WHP) promotes health and occupational safety in the companies of the member states of ENWHP1. The declaration encourages members to attach greater importance to WHP.
The World Business Council for Sustainable Development (WBCSD), founded in 1995, is a frontrunner and catalyst on the path to sustainable development.
Social Responsibility
Corporate Memberships (1)
Source: www.vielfalt-als-chance.de (German Federal Government Commissioner for Migration, Refugees and Integration); luxemburger-deklaration.de. 1) European Network for Workplace Health Promotion.
132
ECPI is a leading Rating and Index company dedicated to ESG Research since 1997. Continental is a constituent of the ECPI Ethical EMU Equity1 as one of the Global Equity Indices.
The Carbon Disclosure Project (CDP) is a non-profit organization that aims to create more transparency regarding environmentally damaging emissions. Continental has been answering CDP’s extensive questionnaire since 2009. In 2012, we advanced our way into the Carbon Disclosure Leadership Index.
The European Road Safety Charter is an appeal and impetus for all groups in society to make a concrete contribution to improving traffic safety in Europe. The goal is to reduce the number of fatalities on the roads of the European Union (EU) by 2020.
Social Responsibility
Corporate Memberships (2)
1) 150 top capitalized companies in the Economic and Monetary Union market which are eligible investments.
© Continental AG Fact Book 2012 | 72
133
Corporate Governance
Corporate Bodies
20 members (in accordance with the Mitbestimmungsgesetz (German Co-determination Act)): 10 elected by ASM 10 elected by such employees of Continental AG and its subsidiaries who are employed in Germany
Shareholders exercise their voting rights (1 share = 1 vote)
Chairman’s Committee & Mediation Committee
8 members
Audit Committee
Nomination Committee
Annual Shareholders’ Meeting (ASM)
Chairman of the Executive Board
Solely responsible for the management of the company
appoints, supervises, advises
Chairman of the Supervisory Board
Approval of certain management decisions of material importance to the company
reporting election / ratification
reporting
Corporate Governance is the responsibility of the company‘s corporate bodies. Continental AG‘s Corporate Governance Principles are closely modeled on the recommendations and suggestions of the German Corporate Governance Code.
ratification taking into account resolutions of ASM
Executive Board Supervisory Board
Source: Based on information in Annual Report Continental AG 2012 (pp 32-35).
134
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
© Continental AG Fact Book 2012 | 73
135
Share & Bond Information
Share Data / ADR Data
Share Data
Type of share No-par value share
Bloomberg ticker CON
Reuters ticker CONG
German security identification number (WKN) 543 900
ISIN number DE0005439004
Shares outstanding at December 31, 2012 200,005,983
ADR Data1
Ratio (ordinary share: ADR) 1:1
Bloomberg ticker CTTAY
Reuters ticker CTTAY.PK
ISIN number US2107712000
ADR level Level 1
Exchange OTC
Sponsor Deutsche Bank Trust Company Americas
1) As of March 2013.
136
Share & Bond Information
Share Price Development vs. Major Stock Indexes
Source: Bloomberg, January 2013.
0
100
200
300
400
500
600
Jan-
98
Jan-
99
Jan-
00
Jan-
01
Jan-
02
Jan-
03
Jan-
04
Jan-
05
Jan-
06
Jan-
07
Jan-
08
Jan-
09
Jan-
10
Jan-
11
Jan-
12
Jan-
13
Continental DAX MDAX EURO STOXX Automobile & Parts
(January 1, 1998: €19.80)
© Continental AG Fact Book 2012 | 74
137
414 433 433
512 512 512
161.7 169.0 169.0 200.0 200.0 200.0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012
Common stock (in € millions) Number of shares (in millions)
Share & Bond Information
Common Stock
138
UK & Ireland 25%
Germany 13%
Germany (Retail)
5% France
5% Scandinavia 5%
Rest of Europe 6%
USA & Canada 17%
Asia & Australia
8%
Unidentified 15%
Free Float 50.10%
Schaeffler Group
49.90%
Share & Bond Information
Shareholder Structure
Shareholder structure
at December 31, 2012
Shareholder structure free float
(85% identified)
at December 31, 2012
© Continental AG Fact Book 2012 | 75
139
Share & Bond Information
Bond Details
1) Guaranteed by Continental AG and certain subsidiaries of Continental AG.
Bond Data
Issuer Conti-Gummi Finance B.V., Netherlands1
Conti-Gummi Finance B.V., Netherlands1
Conti-Gummi Finance B.V., Netherlands1
Conti-Gummi Finance B.V., Netherlands1
Continental Rubber of America, Corp., USA1
Issue Senior Secured Notes
Senior Secured Notes
Senior Secured Notes
Senior Secured Notes
Senior Secured Notes
Principal amount €750 mn €1,000 mn €625 mn €625 mn $950 mn
Offering price 99.0047% 99.3304% 98.8610% 99.2460% 100.0000%
Rating at issuance date B1 (Moody’s) B (Standard & Poor’s)
B1 (Moody’s) B (Standard & Poor’s)
B1 (Moody’s) B (Standard & Poor’s)
B1 (Moody’s) B (Standard & Poor’s)
Ba3 (Moody’s) BB- (Standard & Poor’s)
Current Corporate Rating Ba2 (Moody’s), BB- (Standard & Poor’s)
Coupon 8.5% p.a. 7.5% p.a. 6.5% p.a. 7.125% p.a. 4.5% p.a.
Issue date July 16, 2010 September 13, 2010 October 5, 2010 October 5, 2010 September 24, 2012
Maturity July 15, 2015 September 15, 2017 January 15, 2016 October 15, 2018 September 15, 2019
Interest payment Semi-annual Jan 15 and Jul 15
Semi-annual Mar 15 and Sept 15
Semi-annual Jan 15 and Jul 15
Semi-annual Apr 15 and Oct 15
Semi-annual Mar 15 and Sept 15
WKN A1AY2A A1A0U3 A1A1P0 A1A1P2 A1G9JJ
ISIN DE000A1AY2A0 DE000A1A0U37 DE000A1A1P09 DE000A1A1P25 DE000A1G9JJ0
Denomination €1,000 with min. tradable amount €50,000
€1,000 with min. tradable amount €50,000
€1,000 with min. tradable amount €50,000
€1,000 with min. tradable amount €50,000
$1,000 with min. tradable amount $150,000
140
90
95
100
105
110
115
Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13
8.5% (2015) 6.5% (2016) 7.5% (2017) 7.125% (2018) 4.5% (2019)
Share & Bond Information
Development of the Bonds
Source: Bloomberg, January 2013.
(in €)
© Continental AG Fact Book 2012 | 76
141
Rati
ng
BBB+ BBB
BBB+ BBB
BBB-
BB B+
05/19/00 10/31/01 08/06/04 11/16/07 09/26/08 01/27/09 08/13/09
Non-investment grade
Investment Grade
Credit Rating Standard & Poor’s:
Rati
ng
Baa1 Baa2
Baa1 Baa2
Baa3
Ba1
Ba3
05/19/00 11/15/01 01/04/05 02/26/08 11/07/08 12/18/08 06/02/09
Non-investment grade
Investment Grade
Credit Rating Moody‘s:
08/14/09
B1
Ba2
02/23/09
B
05/18/10
04/05/11
Ba3
07/20/11 05/16/12
BB- B+
BBB-
Before Siemens VDO
Before Siemens VDO
SACP1:
Ba2
09/28/12
Share & Bond Information
Development of Continental’s Credit Rating
1) SACP = Stand-alone credit profile.
142
Share & Bond Information
10 Year Financial Overview
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Balance sheets
Non-current assets in € millions 15,573.5 15,075.5 14,887.9 14,724.6 16,348.4 17,383.9 5,877.9 5,193.8 4,953.9 4,835.0 Current assets in € millions 11,764.4 10,962.9 9,502.6 8,324.6 8,339.5 10,353.7 4,975.1 5,353.9 4,742.0 3,463.5 Total assets in € millions 27,337.9 26,038.4 24,390.5 23,049.2 24,687.9 27,737.6 10,853.0 10,547.7 9,695.9 8,298.5
Shareholders’ equity (excl. non-controlling interests) in € millions 8,767.4 7,146.1 5,859.6 3,772.6 5,265.4 6,583.2 4,470.8 3,574.2 2,706.2 1,983.2 Non-controlling interests in € millions 377.4 397.2 343.3 289.1 264.5 272.9 239.1 220.8 231.0 151.4
Total equity (incl. non-controlling interests) in € millions 9,144.8 7,543.3 6,202.9 4,061.7 5,529.9 6,856.1 4,709.9 3,795.0 2,937.2 2,134.6 Equity ratio in % 33.5 29.0 25.4 17.6 22.4 24.7 43.4 36.0 30.3 23.9 Capital expenditure in € millions 2,019.4 1,711.3 1,296.4 860.1 1,595.2 896.9 805.0 871.8 703.0 625.8 Net indebtedness in € millions 5,319.9 6,772.1 7,317.0 8,895.5 10,483.5 10,856.4 1,181.0 493.2 881.1 1,168.6 Gearing ratio in % 58.2 89.8 118.0 219.0 189.6 158.3 25.1 13.0 30.0 58.9 Income statements
Sales in € millions 32,736.2 30,504.9 26,046.9 20,095.7 24,238.7 16,619.4 14,887.0 13,837.2 12,597.4 11,534.4 Share of foreign sales in % 75.4 73.7 72.8 71.0 68.5 69.2 67.6 65.8 66.8 67.0 Cost of sales in % of sales in % 78.4 79.0 77.8 80.0 80.4 75.8 75.3 74.6 75.0 76.5
Research and development expenses in % of sales in % 5.4 5.3 5.6 6.7 6.2 5.0 4.5 4.3 4.2 4.3 Selling expenses in % of sales in % 4.8 4.7 5.0 5.6 4.9 5.5 5.7 6.1 6.2 6.2 Administrative expenses in % of sales in % 2.1 2.1 2.5 3.0 3.2 2.7 3.0 3.1 3.1 3.3 EBITDA in € millions 4,854.6 4,228.0 3,587.6 1,591.2 2,771.4 2,490.6 2,301.5 2,248.9 1,824.6 1,458.3 EBITDA in % of sales in % 14.8 13.9 13.8 7.9 11.4 15.0 15.5 16.3 14.5 12.6 Personnel expenses in € millions 6,905.6 6,354.3 5,891.7 5,199.8 5,746.3 3,652.7 3,175.2 3,054.3 3,011.7 2,681.8 Depreciation and amortization in € millions 1,781.2 1,631.1 1,652.4 2,631.6 3,067.6 814.8 699.6 741.8 667.2 603.1
Net income attributable to the shareholders of the parent in € millions 1,883.5 1,242.2 576.0 -1,649.2 -1,123.5 1,020.6 981.9 929.6 716.2 314.0 Dividend and earnings per share
Dividend for the fiscal year in € millions 450.01 300.0 — — — 323.4 293.1 145.9 116.3 70.4 Number of shares at December 31 in millions 200.0 200.0 200.0 169.0 169.0 161.7 146.5 145.9 145.4 135.4 Earnings per share € 9.42 6.21 2.88 -9.76 -6.84 6.79 6.72 6.38 5.19 2.37 Employees
Annual average in thousands 169.0 159.7 142.7 133.4 148.4 93.9 81.6 81.1 73.7 66.5
1) Based upon the Executive Board’s proposal for the appropriation of profits.
© Continental AG Fact Book 2012 | 77
143
Topics
A. Continental at a Glance I.
B. Continental Strategy II.
C. Continental Corporation IV.
D. Market Data V.
Automotive Group VI.
Rubber Group VII.
Sustainability at Continental VIII.
Share & Bond Information IX.
Glossary X.
B. Continental Megatrends III.
144
Financial Glossary
ADR American Depositary Receipt
Capex Capital expenditure on property, plant, equipment and software
EBIT Earnings Before Interest and Taxes
EBITDA EBIT Before Depreciation and Amortization
EBIT margin EBIT as a percentage of sales
EBITDA margin EBITDA as a percentage of sales
FCF Free Cash Flow. We define FCF as cash provided by operating activities minus cash used for investing activities
Gearing ratio Represents the net indebtedness divided by total equity, expressed as a percentage
ISIN International Securities Identification Number
Net indebtedness The net amount of interest-bearing liabilities, investments and cash and cash equivalents as recognized in the balance sheet as well as the market values of the derivative instruments
NIAT Net Income Attributable to the shareholders of the parent
Operating assets Operating assets are the assets less liabilities as reported in the statement of financial position, without recognizing the net indebtedness, discounted trade bills, deferred tax assets and income tax receivable and payable as well as other financial assets and debt
PPA Purchase Price Allocation
R, D & E Expenses Research, Development and Engineering Expenses
ROCE (average) Return On Capital Employed. We define ROCE as the ratio of EBIT to average operating assets for the fiscal year
© Continental AG Fact Book 2012 | 78
145
Product Glossary
ABS Anti-Lock Brake System
ACC Adaptive Cruise Control
ADAS Advanced Driver Assistant System
AMT Automated Manual Transmission
AT Automatic Transmission
CAGR Compound Annual Growth Rate
C&S Chassis & Safety Division
CT ContiTech Division
CV Commercial Vehicle
CVT Commercial Vehicle Tires Division
CVaT Continuous Variable Transmission
ECU Electronic Control Unit
DCT Double Clutch Transmission
EBS Electronic Brake System
ESC Electronic Stability Control
HEV Hybrid Electric Vehicle
HMI Human Machine Interface
HVAC Heating, Ventilation and Air Conditioning
I Interior Division
MAB/MIB Motorcycle Anti-lock Braking System / Motorcycle Integrated Brake System
MT Manual Transmission
NVH Noise Vibration Harshness
OTR Off The Road Tires
PCB Printed Curcuit Board
PLT Passenger & Light Truck Tires Division
PT Powertrain Division
PWM Pulse Width Modulation
RV Recreational Vehicle
SSR Self Supporting Runflat Tires
SUV Sport Utility Vehicle
TCS Traction Control System
TPMS Tire Pressure Monitoring System
146
Contact Data
Vahrenwalder Str. 9 Gabriele Collatz 30165 Hannover Telephone: +49 511 938 1915 Germany e-mail: [email protected] Rolf Woller Kajsa Hebeler Telephone: +49 511 938 1068 Telephone: +49 511 938 1062 e-mail: [email protected] e-mail: [email protected] Ingrid Kampf Klaus Paesler Telephone: +49 511 938 1163 Telephone: +49 511 938 1316 Fax: +49 511 938 1080 e-mail: [email protected] e-mail: [email protected] www.continental-ir.com Sabine Reese Telephone: +49 511 938 1027 e-mail: [email protected] Michael Saemann Telephone: +49 511 938 1307 e-mail: [email protected]
© Continental AG Fact Book 2012 | 79
147
Financial Calendar
2013
Annual Financial Press Conference March 7, 2013 Q1 Financial Report May 3, 2013 Annual Shareholders’ Meeting May 15, 2013 Half Year Financial Report August 1, 2013 Nine Months Financial Report November 7, 2013
2014
Annual Financial Press Conference March 2014 Annual Shareholders’ Meeting April 25, 2014 Q1 Financial Report May 2014 Half Year Financial Report August 2014 Nine Months Financial Report November 2014
© Continental AG Fact Book 2012 | 80