Continental Ag · XETR:CON
Continental — FY2021 Earnings Presentation
34 slides from Continental's earnings presentation, Mar 9, 2022
Slide 1: FY 2021 Results
FY 2021 Results Hanover – March 9, 2022 Ticker: CON Nikolai Setzer – CEO ADR-Ticker: CTTAY Katja Dürrfeld – CFO http://www.continental-ir.com
Slide 2: Agenda
Agenda 1 CEO Message 3 2 Business Highlights 5 3 Group Highlights 8 4 Automotive Technologies 10 5 Rubber Technologies 13 6 Cash Flow – Continuing and Discontinued Operations 15 7 2022 Expectations 16 8 Back-up and Fact Sheets 2020 – FY 2021 23 FY 2021 Results March 9, 2022 © Continental AG Public 2
Slide 3: CEO Message: Focus on Managing Challenges and Improving Performance
1 | CEO Message Focus on Managing Challenges and Improving Performance Review FY 2021 Priorities FY 2022 Group Operational topics › (+) Vitesco Technologies spin-off successfully completed › Top priority remains the health and safety of our people › (+) New Group and Automotive structures defined an
Slide 4: Proposed Payout Reflects Commitment to Dividend Policy
1 | CEO Message Proposed Payout Reflects Commitment to Dividend Policy Dividend per share1 (€) 4.75 4.50 4.25 3.75 3.25 3.00 2.50 2.25 2.20 1.50 0 0 3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Mid-term Payout n.a. 24% 24% 26% 27% 28% 30% 30% 33% n.a. n.a. 30% ratio2 1 Dividend paid
Slide 5: Automotive – At The Forefront of User Experience
2 | Business Highlights Automotive – At The Forefront of User Experience IN LAUNCH1 UPCOMING High i4 SOP Premium Volume OEM 2021/22 OEM L-Shape Display + Cockpit HPC2 C-Shape Display + Cockpit HPC2 V-Shape Display UPCOMING LAUNCHES NEW ACQUISITIONS UNDERWAY Business win Business win with German OEM
Slide 6: Automotive – Leadership in High Performance Computers (HPCs)
2 | Business Highlights Automotive – Leadership in High Performance Computers (HPCs) First to market Upcoming SOPs Future For Volkswagen Group’s MEB platform HPCs for single domains HPC servers for cross-domain solutions ~ 500,000 ICAS1 units ~ €5.5 bn cumulative > 15 active acquisitions underway de
Slide 7: Tires: Positive Mix Driven By EV Strength and UHP Contributions
2 | Business Highlights Tires: Positive Mix Driven By EV Strength and UHP1 Contributions OE Homologations for EVs Ultra-High-Performance Tires EV homologations EV share of all homologations UHP-Share of PLT2 sales UHP-Share of PLT2 units 44% ~ 300 38% 35% 30% 26% >20% 24% - ~ 100 ~ 50 ~ 5% ~ 3% 2017
Slide 8: Most Important KPIs for FY 2021
3 | Group Highlights Most Important KPIs for FY 2021 FY 2020 FY 2021 Change Comments Sales €31.9 bn €33.8 bn +6.0% Organic growth +7.4%; FX -€247 mn Adjusted EBIT1 €1,380 mn €1,900 mn +€521 mn Adjusted EBIT1 margin 4.4% 5.6% +120 bps PPA2 -€175 mn -€159 mn Special effects -€1,636 mn €123 mn Carve-ou
Slide 9: Q4 2021 – Sales and Earnings Performance
3 | Group Highlights Q4 2021 – Sales and Earnings Performance Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Rubber Contract Automotive Rubber Contract Technologies Technologies Manufacturing2 Technologies Technologies Manufacturing2 +4.4% -13.8% 4,639 15.9% 4,497 4,373 691 3,971 9.4% 438 3.4% -4 -12
Slide 10: Regional Production vs. Sales Growth in Q4 2021
4 | Automotive Technologies Regional Production vs. Sales Growth in Q4 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 0% 0% 0% 0% -2% -5% -5% -5% -5% -6% -10% -10% -10% -10% -15% -15% -14% -15% -15% -14% -14% -16% -20% -20% -20% -20% -19% -25% -25%
Slide 11: Q4 2021 – Autonomous Mobility and Safety
4 | Automotive Technologies Q4 2021 – Autonomous Mobility and Safety Sales (€ mn) Adjusted EBIT1 (€ mn) Sales -15.7% › Impact from FX: +1.6% 2,234 › Volume impact felt in all product areas 1,960 › Weakness especially in Europe and North America; China declined only slightly 4.4% 100 Adjusted EBIT1 ›
Slide 12: Q4 2021 – Vehicle Networking and Information
4 | Automotive Technologies Q4 2021 – Vehicle Networking and Information Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 2,289 -11.7% › Impact from FX: +2.1% › Semiconductor supply remained challenging, 2,035 but progressively improved through the quarter › Production stoppages affected European and North
Slide 13: Q4 2021 – Tires
5 | Rubber Technologies Q4 2021 – Tires Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +9.3% › Impact from FX: +2.0% 3,200 › Volumes: -1.5% 2,874 19.1% 549 › OE volumes remained restrained › Replacement volumes in all regions near 2019 levels › Price/mix: +10.8% 352 11.0% › About half attributable to pric
Slide 14: Q4 2021 – ContiTech
5 | Rubber Technologies Q4 2021 – ContiTech Sales (€ mn) Adjusted EBIT1 (€ mn) Sales -5.0% › Impact from FX: +2.1% 1,524 1,465 › Automotive: volumes significantly down Y-o-Y, 9.4% 142 with strongest declines in Europe and North America › Industrial & Aftermarket: solid growth in Surface Solutions an
Slide 15: Free Cash Flow Impacted by Higher Inventories
6 | Cash Flow – Continuing and Discontinued Operations Free Cash Flow Impacted by Higher Inventories Cash Flow (€ mn) Operating Cash Flow Free cash flow before Operating Investing acquisitions, divestments, and › Higher inventory figure reflected higher material Carve-out effects Acquisitions and di
Slide 16: 2022 Expectations: Market Outlook
7 | 2022 Expectations Expectations do not include potential effects related to the current geopolitical crisis In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. De
Slide 17: 2022 Expectations: Sales
7 | 2022 Expectations Expectations do not include potential effects related to the current geopolitical crisis In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. De
Slide 18: 2022 Expectations: Adjusted EBIT Margin
7 | 2022 Expectations Expectations do not include potential effects related to the current geopolitical crisis In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. De
Slide 19: 2022 Expectations: Free Cash Flow
7 | 2022 Expectations Expectations do not include potential effects related to the current geopolitical crisis In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. De
Slide 20: 2022 Expectations Summary
7 | 2022 Expectations Expectations do not include potential effects related to the current geopolitical crisis In the event the geopolitical situation, in particular in Eastern Europe, remains tense or even worsens, it could result in lasting consequences for production, supply chains and demand. De
Slide 21: Internal
FY 2021 Results March 9, 2022 © Continental AG Public 21 Internal
Slide 22: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on March 9, 2022, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recomm
Slide 23: Back-up
Back-up FY 2021 Results March 9, 2022 © Continental AG Public 23 Internal
Slide 24: Regional Production vs. Sales Growth in FY 2021
Back-up Regional Production vs. Sales Growth in FY 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 5% ~ +1%-pts 5% 5% 5% 5% 3% 3% 3% 3% 1% 1% 0% 1% 0% 1% 1% 0% -1% -1% -1% -1% -1% -3% -3% -2% -3% -3% -5% -5% -5% -5% -4% Europe: share of sales North A
Slide 25: Capex, Depreciation and Earnings per Share – Breakdown for FY 2021
Back-up Capex, Depreciation and Earnings per Share – Breakdown for FY 2021 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 3,017 0.57 7.85 7.28 2,099 1,947 1,780 5.6% 5.8% 175 159 1 1,2 2020 2021 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sa
Slide 26: Relevant Bonds
Back-up Relevant Bonds Continental AG Conti-Gummi Finance Conti-Gummi Finance Continental AG Continental AG Issuer B.V., Netherlands1 B.V., Netherlands1 Issue Senior Notes Principal €500 mn €750 mn €625 mn €600 mn €750 mn amount Offering price 99.804% 99.559% 99.589% 99.802% 98.791% Rating Baa1 (Moo
Slide 27: Investment Grade Credit Profile
Back-up Investment Grade Credit Profile Leverage ratio1 Gearing ratio2 Equity ratio3 Continental’s current credit rating is: Continental’s targets: › Fitch (since April 20, 2020): BBB, outlook stable › Rating: BBB / BBB+ › S&P (since March 30, 2020): BBB, outlook negative › Leverage ratio : 1 well b
Slide 28: Fact Sheets 2020 – FY 2021
Fact Sheets 2020 – FY 2021 FY 2021 Results March 9, 2022 © Continental AG Public 28 Internal
Slide 29: Sales and Adjusted EBIT by Quarter
Fact Sheets Sales and Adjusted EBIT1 by Quarter Sales Adjusted EBIT1 2020 2021 2020 2021 Sales (€ mn) Adj. EBIT¹ (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Autonomous Mobility and Safety 2,074.3 1,252.3 1,999.6 2,233.6 7,559.8 2,046.2 1,853.4 1,637.0 1,960.1 7,496.7 A
Slide 30: EBITDA and EBIT by Quarter
Fact Sheets EBITDA and EBIT by Quarter EBITDA EBIT 2020 2021 2020 2021 (€ mn) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Autonomous Mobility and Safety 133.0 -69.1 149.9 199.1 412.9 166.8 78.5 60.4 89.5 395.2 1.0 -194.6 34.3 29.8 -129.5 38.4 -49.2 -71.6 -45.6 -128.0 Vehicle
Slide 31: Reported and Adjusted FY 2021 Results
Fact Sheets Reported and Adjusted FY 2021 Results Autonomous Mobility Vehicle Networking and (€ mn) Tires ContiTech Contract Manufacturing Cons. / Corr. Group and Safety Information 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Sales 7,559.8 7,496.7 7,942.2 7,957.6 10,158.6 1
Slide 32: References
References Useful Links to Continental Websites Investor Relations www.continental-ir.com Reports and Investor Presentation (Fact Book) Reports Latest Presentations Presentations Events Events Sustainability Sustainability 2020 Integrated Sustainability Report 2020 Integrated Sustainability Report C
Slide 33: Financial Calendar
Continental Financial Calendar 2022 Annual Financial Press Conference March 9, 2022 Annual Shareholders’ Meeting April 29, 2022 Q1 Quarterly Statement May 11, 2022 Half-Year Financial Report August 9, 2022 Nine-Month Quarterly Statement November 10, 2022 2023 Annual Financial Press Conference March
Slide 34: Contact
Contact Investor Relations Vahrenwalder Str. 9 e-mail: [email protected] 30165 Hanover Fax: +49 511 938 1080 Germany www.continental-ir.com Bernard Wang Phone: +49 511 938 1068 Andrea Kraft Phone: +49 511 938 1880 Head of Investor Relations (IR) e-mail: [email protected] Analysts and Institutional Inv