interior division ‘always on’ - continental usa · 11/10/2016 · ›market for mobility...

Bitte decken Sie die schraffierte Fläche mit einem Bild ab.

Please cover the shaded area with a picture.

(24,4 x 13,2 cm)

‘Always On’

www.continental-ir.com Interior Division

Continental Capital Markets Day - November 10, 2016

Interior Division

2

Agenda

3

1 Interior at a Glance

Growth Drivers Until Today and of Tomorrow 2

Opportunities of the Future

November 10, 2016

Helmut Matschi © Continental AG

* Status Q3 2016, ** 2015YE

Interior at a Glance Overview Interior Division – Last Twelve Months

November 10, 2016

4 Helmut Matschi © Continental AG

› Sales of €8.3 billion

› EBIT adj. 7.8% / ROCE 13.2%

› 42,808 employees worldwide

› 106 locations in 25 countries (incl. sales offices)

Sales by market: Interior

Germany (DE) 27%

Europa excluding DE

20% Asia 24%

NAFTA 26%

Other countries

3%

Interior at a Glance Our Business Units & Product Portfolio

November 10, 2016


Intelligent Transportation Systems

› Fleet management solutions & services

› Emergency management

› Maintenance management

› Advanced public transportation systems

› Advanced traveler information systems

› Advanced traffic management systems

› Safety & security

› Intelligent payment systems

› Body control modules

› Access control systems

› Door control units

› Seat comfort systems

› Power closures

› Tire information systems

› Gateways

› Power stabilization

› Lighting control units

› Intelligent antenna modules

› Smart device integration

Body & Security

› Tachographs, telematics and services

› Visual and haptical human-machine interface

› Chassis, body and transmission electronics

› Spare parts, wear parts, tools, services and multi-brand vehicle diagnostics for the independent aftermarket as well as diagnostics and services for vehicle manufacturers

› Original equipment services

› Instrument clusters

› Displays solutions

› Head-up displays

› Haptic controls

› Interior cameras

› Cockpit modules

› Radios

› Infotainment

› Connectivity & telematics

› Software & connected solutions

Commercial Vehicles & Aftermarket

Instrumentation & Driver HMI

Infotainment & Connectivity

Interior at a Glance Our Vision, Mission and Strategy

November 10, 2016


Vision

Strategy

Mission

Information management

is a key to realizing

‘Clean Power’ and

‘Zero Accidents’

Tomorrow's vehicle

is always connected,

user-friendly, comfortable

and intelligent

We inform you well,

we connect –

all at lower cost

Information Management

in the Vehicle and beyond

Always On

1. Holistic Human-Machine Interface

2. Holistic Connectivity

3. Systems Integration

4. Most complete Product Portfolio

Agenda

3




November 10, 2016


Growth Drivers Until Today and of Tomorrow Financial Performance


November 10, 2016

0

2

4

6

8

10

0

5

10

15

20

2013

6.6

9.5

2012

6.4

9.6

2011

6.1

7.6

2010

5.5

4.5

2014

8.2

2015

19.2

7.0

15.9

ROCE %

Sales in € bn

22.4% 11.5% 3.3% 6.0% 8.6% 8.3%

Organic Growth

Strong organic growth consistently

with ROCE improvement by

15% points

Enhanced profitability with margin

increase of 270 basis points in the

last 5 years despite higher R&D

Leading player for electronics and

software with a balanced

regional footprint

*adj EBIT reported in the respective year

10.2%

ROS* 10.1%

ROS*

8.9%

ROS*

9.2%

ROS*

8.4%

ROS*

7.5%

ROS*

November 10, 2016


Invention

Order

Sales

Growth Drivers Until Today and of Tomorrow Our Product Portfolio for Today's Solutions & Tomorrow's Innovations

IIP = Integrated Interior Platform, ITS = Intelligent Transportation Systems, AR-HUD = Augmented Reality Head-Up Display, OTA = Over The Air, MFST = Multi Functional Smartphone Terminal, IAM = Intelligent Antenna Module

eHorizon Lighting

Network Devices / IAM

Connected

Technician Tachograph / Fleet-Management

Seat Comfort

Interior

Camera

OTA

keys

MFST

IIP

Connectivity

Head-up Displays

Full digital Cluster

ProViu®

Mirror

AR-HUD

ProViu® 360

Displays

Instrument

Clusters

Radios

Haptic Controls

Body Controllers

Access Systems

Power Closures

Tire

Information

Multimedia

Cockpits

5,5 6,1 6,4 6,6 7,0

8,2 >8.2

>10

6,1

7,4 8,2 8,3

9,2 9,6 >10

2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E

Interior Sales (bn €) Order Intake (Life-Time-Sales, bn €)


November 10, 2016

Growth Drivers Until Today and of Tomorrow High Order Intake Secures Future Sales Growth

CAGR

8%

Growth Drivers Until Today and of Tomorrow More and Larger Displays

November 10, 2016


Integrated Interior Platform

Displays

Instrument

Clusters (AR)-HUD

Multimedia

Source: Statista 2016, IHS Markit Ltd2016

November 10, 2016


MFST

Entry

Telematics

Premium

Telematics

Multimedia

w/ NAD

Digital

Tachograph

Diagnose

Dongle

IAM

Connected

Gateway Device

Connectivity

WLAN

NAD = Network Access Module, IAM = Intelligent Antenna Module, MFST = Multi Functional Smartphone Terminal

Growth Drivers Until Today and of Tomorrow The Most Complete Range of Connectivity Solutions

Growth Drivers Until Today and of Tomorrow Rising Electronic and Software Content

November 10, 2016


Body Control Modules (BCM)

2007 - 2009 2010 - 2012

91,000 LoC 265,000 LoC

Gateways

2009 - 2012 2013 - 2015

50,000 LoC 360,000 LoC

Infotainment

2009 - 2012 2011 - 2015

525,000 3,000,000

LoC LoC


Growth Drivers Until Today and of Tomorrow Strong SW and Integration Capabilities due to EB Automotive

• Classical OEMs

• New entrants

• Suppliers

• 3rd parties

Mobility Services

&

Automated Driving

Functions

› Software as Product and

Software as Service providing a

platform for automated driving and

mobility services

› Continental provides components

with base SW

› EB offers open SW platform for

OEMs, Tier 1 and other parties,

enabling Software model as

Product and Service.

› Significant bigger scaling

opportunity

SW Platforms & Tools

November 10, 2016

Invention

Order

Sales

Growth Drivers Until Today and of Tomorrow Technology Leadership in New Businesses


IIP = Integrated Interior Platform, ITS = Intelligent Transportation Systems, AR-HUD = Augmented Reality Head-Up Display, OTA = Over The Air, MFST = Multi Functional Smartphone Terminal, IAM = Intelligent Antenna Module

Instrument

Clusters

Radios

Haptic Controls

Body Controllers

Network Devices / IAM

Access Systems

Power Closures

Tachograph / Fleet-Management

Seat Comfort

Tire Information

Multimedia

Connectivity

Cockpit

Head-up Displays

Full digital Cluster

ProViu® 360

Displays

Invention

Order

Sales

eHorizon

Connected

Technician

Interior

Camera OTA keys

MFST

IIP

ProViu®

Mirror

AR-HUD

Lighting

November 10, 2016

Growth Drivers Until Today and of Tomorrow Interior Business of Tomorrow – Key Growth Drivers

2021

>10

2020 2019 2018 2017 2016

>8.2

Sales (€ bn)

Composition of additional sales

2021 vs 2016

25%

18%

19%

27%

November 10, 2016


CVAM

ITS

ID

IC

B&S

>10%

11%

adj. EBIT

Agenda

3




November 10, 2016


Continental's view/position:

› Market for automated driving is

forecasted to exceed €20 bn

by 2020

› 60% of our Automotive Group sales in

2015 are derived from sensors,

electronics or software products

› Vision Zero accidents achievable

Opportunities of the Future Digitalization, Mobility Services and Electric Mobility


Mobility Services

Digitalization


› Market for mobility services is forecasted

to exceed €57 bn

by 2020

› Conti founded new Intelligent

Transportation Services (ITS) business

unit in 2014

› First applications include eHorizon and

Road Database

1 FEV = Full Electric Vehicle

Electric Mobility


› FEV1 sales to account for 2% of global

car production by 2020

› Demand for FEV2 will be determined by

the cost, life-time, range and charging

time of the battery

› Conti has invested more than

€1 bn in electric mobility to date

November 10, 2016


Opportunities of the Future Digitalization Comes with Different Waves

Systems Products

Mobility Services Closed Connected

Wave 1

Mechatronics

Wave 2

Systems

Wave 3

Connected Systems and services

November 10, 2016

Services

already

addressed

Digital

Services core

Digital Services

adjacent

Total IoT Market

~290 … ~630

A

B

e.g.:

▪ Hospitals: tracking of

patient conditions;

improved wellness

and fitness; …

▪ Retail: automated

store check-outs;

optimized store

layouts, …

▪ Cities: optimized

disaster management

▪ …

Currently

not in focus

▪ Expand in additional industries like factories,

construction, agriculture, cities

▪ Tracking, monitoring, management,

maintenance

▪ Car/Ride sharing

▪ Predictive maintenance

▪ Advanced traffic management systems

▪ Usage-based services (e.g. insurance)

▪ Road service: eHorizon, Road Database

▪ Commercial fleets and logistics

▪ E-tolling

Potential

Continental

value

proposition

Good match

with today’s

Continental

value

proposition

Services

Continental

is currently

developing/

offering Market size in USD billions, 2025

November 10, 2016


Opportunities of the Future How Attractive is the Mobility Services Market?

Source:McKinsey

Systems

Opportunities of the Future Our Pipeline Towards Interior Service Solutions

November 10, 2016


Products

Mobility Services

Closed Connected

eHorizon / Road Database

Remote Vehicle Diagnostics

OTA keys / Remote Cloud Key

TISWeb (Fleet services)

Continental.cloud

Integrated

Interior

Platform

Next E/E

Architecture

Interior is Ready to Grow Further

With consistent growth in products, systems solutions, electronics, software

and services, we aspire to cover 20% of our relevant market in next 5 years.

With our strategy to extend our portfolio towards Mobility Services, we

continue to invest in innovation and aspire to keep the

adj. EBIT>10% and ROCE>20%.

We outperform the market growth

and continue to be the preferred choice for our customers.

23

Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Capital Markets Day (CMD) on November 10, 2016, in

Regensburg. 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 subsidiary 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 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.

› Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and

percentages.

interior division ‘always on’ - continental usa · 11/10/2016 · ›market for mobility...

Documents