Continental Ag · XETR:CON
Continental — H1 2023 Earnings Presentation
26 slides from Continental's earnings presentation, Aug 9, 2023
Slide 1: H1 2023 Results
H1 2023 Results Hanover – August 9, 2023 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Katja Dürrfeld – 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 – H1 2023 H1 2023 Results © Continental AG Public August 9, 2023 2 Internal
Slide 3: Group Highlights: Most Important KPIs for Q2 2023
1 | Group Highlights Most Important KPIs for Q2 2023 Q2 2022 Q2 2023 Executive Summary Sales €9.4 bn €10.4 bn › Automotive price negotiations continuing, signings delayed to H2 Adjusted EBIT1 €401 mn €497 mn Adjusted EBIT1 margin 4.3% 4.8% › FX a burden in all sectors, particularly weighing on Autom
Slide 4: Q2 2023 – Sales and Adjusted EBIT
1 | Group Highlights Q2 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Tires ContiTech Contract Automotive Tires ContiTech Contract Manufacturing Manufacturing 20.1% 5,133 5.5% 4,315 13.8% 13.7% 3,381 3,459 7.1% 465 474 6.4% -0.6% 4.9% 4.4% 1,613 1,742 -2.5% 2.2% -25.3%
Slide 5: Automotive Q2 2023 – Sales and Adjusted EBIT
2 | Automotive Q2 2023 – Sales and Adjusted EBIT Sales1,2 (€ mn) Adjusted EBIT3 (€ mn) Sales +20.1% 5,133 › Sales impact from FX: -1.1% 4,315 579 › Organic growth mainly driven by volume +32.8% increases and pricing AM 449 1,002 +22.4% › Signing for some pricing agreements however AN 822 delayed 1,9
Slide 6: Automotive: Regional Production vs. Sales Growth in Q2 23
2 | Automotive Regional Production vs. Sales Growth in Q2 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% ~ +5%-pts 25% 20% 20% 20% 20% 20% 20% 20% 15% 15% 15% 10% 10% 10% 10% 7% 0% 0% 0% 0% Europe: share of sales1 North America: shar
Slide 7: Automotive Q2 2023 – Order Intake of €8.6 bn Lifetime Sales
2 | Automotive Q2 2023 – Order Intake of €8.6 bn Lifetime Sales Order Intake Q2 20231 (€ bn) Highlights Autonomous Mobility: €5.2 bn › Order intake from strategic partnership with Aurora › Radar and camera business 0.4 1.0 awarded 1.3 5.2 Safety and Motion: €1.3 bn 0.5 › Multiple awards for latest g
Slide 8: Autonomous Mobility: Order Intake with Aurora of €4.8 bn
2 | Automotive Autonomous Mobility: Order Intake with Aurora of € 4.8 bn Key Points › Reflects the expected revenue for Continental from the exclusive level 4 autonomous trucking hardware and services partnership › Start of production in the US targeted for 2027 › Sales related to the entire hardwar
Slide 9: Tires Q2 2023 – Sales and Adjusted EBIT
3 | Tires Q2 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -2.5% +5.5% 3,459 3,381 › Volumes: -2.8% 13.8% 465 474 13.7% › Declining replacement volumes mainly in Europe and North America › OE volumes recovering › Price/mix: +7.7%; more than half attributab
Slide 10: ContiTech Q2 2023 – Sales and Adjusted EBIT
4 | ContiTech Q2 2023 – Sales and Adjusted EBIT Sales (€ mn) Adjusted EBIT1 (€ mn) Sales › Impact from FX: -1.7% +7.1% 1,742 1,613 6.4% › Overall positive effects from 2022 price 109 agreements › Ongoing strong volume development in the 4.9% 79 OE business; industry volumes below prior year Adjusted
Slide 11: Cash Flow: Adjusted Free Cash Flow Still Impacted by High Working Capital
5 | Cash Flow Adjusted Free Cash Flow Still Impacted by High Working Capital Cash Flow Q2 2023 (€ mn) Operating Investing1 Adjusted Free Cash Flow1 Operating Cash Flow › Profitability increase as the main driver for stronger operating cash generation 399 › Slightly improved inventory levels › Overal
Slide 12: 2023 Outlook – Main Markets
6 | 2023 Outlook – Main Markets Vehicle Production Replacement Tires1 Industrial Production Passenger Cars & Light Trucks Q2 2023 2023E Q2 2023 2023E Q2 2023 2023E +7% to +9% -5% to -3% Europe +15% -10% Eurozone -0.4% -1% to +1% +3% to +5% -2% to +1% +5% to +7% -3% to -1% North America +15% -9% USA
Slide 13: 2023 Outlook - Update
6 | 2023 Outlook - Update 2023E Continental Group consolidated sales Around €41.5 bn – €44.5 bn (prev. around €42 bn - €45 bn) Adj. EBIT1 margin Around 5.5% – 6.5%, incl. cost inflation (materials, labor, energy, logistics) headwind of ~ €1.4 bn (prev. ~ €1.7 bn) Automotive sales Around €20.5 bn – €
Slide 14: Thank you!
Thank you! aE Is a.
Slide 15: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on August 9, 2023, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recom
Slide 16: Back-up
Back-up H1 2023 Results © Continental AG Public August 9, 2023 16 Internal
Slide 17: Automotive: Regional Production vs. Sales Growth in H1 2023
Back-up Automotive: Regional Production vs. Sales Growth in H1 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% 28% ~ +6%-pts 19% 20% 20% 20% 20% 16% 13% 12% 10% 10% 10% 10% 10% 7% 3% 0% 0% 0% 0% Europe: share of sales1 North America:
Slide 18: Capex, Depreciation and Earnings per Share – Q2 2023
Back-up Capex, Depreciation and Earnings per Share – Q2 2023 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 975 0.11 543 514 511 1.04 1.15 5.8% 4.9% 38 29 1 1,2 Q2 2022 Q2 2023 EPS reported PPA per share after tax 2 EPS excl. PPA ■ Capex (PPE & software), percentage of sales | ■ Depreciati
Slide 19: Relevant Bonds
Back-up Relevant Bonds Conti-Gummi Conti-Gummi Issuer Continental AG Finance B.V., Finance B.V., Continental AG Continental AG Continental AG Continental AG Netherlands1 Netherlands1 Issue Senior Notes Principal €500 mn €750 mn €625 mn €600 mn €750 mn €625 mn €750 mn amount Offering price 99.804% 99
Slide 20: Fact Sheets 2022 – H1 2023
Fact Sheets 2022 – H1 2023 H1 2023 Results © Continental AG Public August 9, 2023 20 Internal
Slide 21: 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 4,315.0 4,941.3 4,819.3 18,321.6 5,015.2 5,132.9 Automotive -172.6 -107.0 38.5 -31.6 Tires 3,295.2 3,3
Slide 22: 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 60.1 127.9 331.8 442.7 962.5 269.3 218.1 Automotive -204.3 -509.9 -426.2 170.3 -970.1 15.6 -39.5 Tires 765.2 671.7 629.0 578
Slide 23: Reported and Adjusted Q2 2023 Results
Fact Sheets Reported and Adjusted Q2 2023 Results Mill. EUR Automotive Tires ContiTech Contract Manufacturing Cons. / Corr. Group 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Sales 4,315.0 5,132.9 3,381.0 3,459.2 1,613.3 1,741.9 179.0 136.3 -44.1 -44.3 9,444.1 10,425.9 EBIT -509.9 -39
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: Financial Calendar
Continental Financial Calendar 2023 Annual Financial Press Conference March 8, 2023 Annual Shareholders’ Meeting April 27, 2023 Q1 Quarterly Statement May 10, 2023 Half-Year Financial Report August 9, 2023 Nine-Month Quarterly Statement November 8, 2023 2024 Annual Financial Press Conference March 2
Slide 26: 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 Head of Investor Relations (IR) e-mail: [email protected] Rachel Arellano phone: +49 511 938 10478 Director - In