Continental Ag · XETR:CON
Continental — 9M 2023 Earnings Presentation
25 slides from Continental's earnings presentation, Nov 8, 2023
Slide 1: 9M 2023 Results
9M 2023 Results Hanover – November 8, 2023 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Katja Garcia Vila (formerly Duerrfeld) – CFO
Slide 2: Agenda
Agenda 1 Group Highlights 2 Automotive 3 Tires 4 ContiTech 5 Cash Flow 6 2023 Outlook Back-up and Fact Sheets 2022 – 9M 2023 9M 2023 Results © Continental AG Public November 8, 2023 2 Internal
Slide 3: Group Highlights: Most Important KPIs for Q3 2023
1 | Group Highlights Most Important KPIs for Q3 2023 Q3 2022 Q3 2023 Executive Summary Sales €10.4 bn €10.2 bn › Further progress with price negotiations in the Automotive group Adjusted EBIT1 €595 mn €637 mn sector; most of the agreements finalized Adjusted EBIT1 margin 5.7% 6.2% PPA2 -€37 mn -€29
Slide 4: Q3 2023 – Sales and Adjusted EBIT
1 | Group Highlights Q3 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing 5.1% 4,941 5,029 0.3% 13.2% 3,626 3,429 11.8% 1.2% 2.8% 424 453 6.6% 2.5% -3.3% 6.3% 1,729 1,711 139 -7.4% -23
Slide 5: Automotive Q3 2023 – Sales and Adjusted EBIT
2 | Automotive Q3 2023 – Sales and Adjusted EBIT Sales1,2 (€ mn) Adjusted EBIT3 (€ mn) Sales +5.1% 5,029 › Sales impact from FX: -3.3% 4,941 AM 556 +12.2% 587 › Organic growth mainly driven by volume increases and pricing AN 996 +6.8% 1,034 › Most of the pricing agreements finalized in Q3 2.8% › Tem
Slide 6: Automotive: Regional Production vs. Sales Growth in Q3 23
2 | Automotive Regional Production vs. Sales Growth in Q3 2023 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 30% 30% 20% 30% 20% 20% 10% 20% ~ +0%pts 9% 10% 10% 8% 10% 0% 5% 5% 0% 5% 5% -7% 0% 0% 0% -10% Europe: share of sales1 North America: share of s
Slide 7: Automotive Q3 2023 – Order Intake of €4.7 bn Lifetime Sales
2 | Automotive Q3 2023 – Order Intake of €4.7 bn Lifetime Sales Order Intake Q3 20231 (€ bn) Highlights Safety and Motion: €2.2 bn › Multiple awards for latest generation of one-box brake 0.3 0.2 systems 0.6 › Airbag control unit systems for Asian OEMs 1.4 Architecture & Networking: €1.4 bn › Main o
Slide 8: Tires Q3 2023 – Sales and Adjusted EBIT
3 | Tires Q3 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -5.1% +0.3% 3,626 3,429 13.2% › Volumes: -2.6%, in line with market 11.8% 453 › Declining replacement volumes mainly in 424 Europe and North America › OE volumes continue to be strong › Price/mix:
Slide 9: ContiTech Q3 2023 – Sales and Adjusted EBIT
4 | ContiTech Q3 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -3.8% +1.2% 1,729 1,711 6.6% › Positive effects from concluded pricing 6.3% 108 111 agreements in OE business › Ongoing strong volume development in the OE business; industry volumes below prio
Slide 10: Adjusted Free Cash Flow Improved Due to Lower Inventory Levels
5 | Cash Flow Adjusted Free Cash Flow Improved Due to Lower Inventory Levels Cash Flow Q3 2023 (€ mn) Operating Investing1 Adjusted Free Cash Flow1 Operating Cash Flow › Inventory improvements as the main driver for better operating cash generation 985 113 › Despite ongoing improvements, working 466
Slide 11: 2023 Outlook – Main Markets
6 | 2023 Outlook – Main Markets Vehicle Production Replacement Tires1 Industrial Production Passenger Cars & Light Trucks Q3 2023 2023E Q3 2023 2023E Q3 2023 2023E +9% to +11% -6% to -4% -2% to 0% Europe +5% -3% Eurozone -3.2% +7% to +9% -5% to -3% -1% to +1% -2% to 0% -1% to +1% North America +9% +
Slide 12: 2023 Outlook - Update
6 | 2023 Outlook - Update 2023E Continental Group consolidated sales Around €41.0 bn – €43.0 bn (prev. ~ €41.5 bn – €44.5 bn) Adj. EBIT1 margin Around 5.5% – 6.5%, incl. cost inflation (materials, labor, energy, logistics) headwind of ~ €1.4 bn Automotive sales Around €20.0 bn – €21.0 bn (prev. ~ €2
Slide 13: Thank you!
Thank you! aE Is a.
Slide 14: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on November 8, 2023, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or rec
Slide 15: Back-up
Back-up 9M 2023 Results © Continental AG Public November 8, 2023 15 Internal
Slide 16: Automotive: Regional Production vs. Sales Growth in 9M 2023
Back-up Automotive: Regional Production vs. Sales Growth in 9M 2023 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 30% 30% 30% 30% ~ +3%pts 21% 20% 20% 20% 20% 14% 14% 11% 11% 10% 10% 10% 10% 4% 5% 3% 0% 0% 0% 0% Europe: share of sales1 North America: sh
Slide 17: Capex, Depreciation and Earnings per Share – Q3 2023
Back-up Capex, Depreciation and Earnings per Share – Q3 2023 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 1,030 0.11 558 586 511 1.49 1.60 5.4% 5.7% 37 29 1 1,2 Q3 2022 Q3 2023 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sales | ■ Deprecia
Slide 18: Relevant Bonds
Back-up Relevant Bonds Conti-Gummi Conti-Gummi Issuer Finance B.V., Finance B.V., Continental AG Continental AG Continental AG Continental AG Continental AG Netherlands1 Netherlands1 Issue Senior Notes Principal €750 mn €625 mn €600 mn €750 mn €500 mn €625 mn €750 mn amount Offering price 99.559% 99
Slide 19: Fact Sheets 2022 – 9M 2023
Fact Sheets 2022 – 9M 2023 9M 2023 Results © Continental AG Public November 8, 2023 19 Internal
Slide 20: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter 2022 2023 2022 2023 Sales in Mill. EUR adj. EBIT¹ in Mill. EUR Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 4,246.0 4,315.1 4,941.3 4,819.3 18,321.6 5,015.2 5,132.9 5,029.2 Automotive -172.6 -107.0 123.7 38.5 -31.6 139
Slide 21: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter 2022 2023 2022 2023 EBITDA in Mill. EUR EBIT in Mill. EUR Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Automotive 60.1 127.9 331.7 442.8 962.5 269.3 218.1 251.3 Automotive -204.3 -509.9 -426.2 170.4 -970.1 15.6 -39.5 -2.6 Tires 765.2 671.
Slide 22: Reported and Adjusted 9M 2023 Results
Fact Sheets Reported and Adjusted 9M 2023 Results 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects. 9M 2023 Results © Continental AG Public November 8, 2023 22 Internal
Slide 23: Financial Calendar and Upcoming Investor Meetings
Continental Financial Calendar and Upcoming Investor Meetings 2023 Upcoming Roadshows and Conferences Annual Press Conference March 8, 2023 › Deutsche Bank AutoTech Conference (CFO) Annual Shareholders’ Meeting April 27, 2023 › November 9, virtual Q1 Quarterly Statement May 10, 2023 › Q3 Roadshow (C
Slide 24: References
References Useful Links to Continental Websites Investor Relations Investor Relations Reports and Investor Presentation (Fact Book) Investor Presentation (Fact Book) Latest Presentations Presentations Events Events Sustainability Sustainability 2022 Integrated Sustainability Report 2022 Integrated S
Slide 25: Contact
Contact Investor Relations Vahrenwalder Str. 9 e-mail: [email protected] 30165 Hanover fax: +49 511 938 1080 Germany www.continental-ir.com Anna-Maria Fischer phone: +49 511 938 12203 Rachel Arellano phone: +49 511 938 10478 Head of Investor Relations (IR) e-mail: [email protected] Director - In