Continental Ag · XETR:CON
Continental — Q1 2021 Earnings Presentation
30 slides from Continental's earnings presentation, May 6, 2021
Slide 1: Q1 2021 Results
Q1 2021 Results Hanover – May 6, 2021 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Wolfgang Schaefer – CFO
Slide 2: Agenda
Agenda Current Situation 3 Strategic Priorities 4 Group Highlights 5 Automotive Technologies 8 Rubber Technologies 10 Powertrain Technologies 12 Cash Flow and Liquidity 13 8 2021 Outlook 15 Back-up and Fact Sheets 2020 – Q1 2021 19 Space for Sender Information Q1 2021 Results – May 6, 2021 Confident
Slide 3: Q1 Update – Current Priorities
1 | Current Situation Q1 Update – Current Priorities Review Q1 2021 Current priorities Group Operational topics › (+) Approvals for Vitesco Technologies spin-off › Continued shortage of semiconductors › (+) Continued discipline in cost and working-capital management › Dealing with increasing costs f
Slide 4: Strategic Priorities
2 | Strategic Priorities Separation of AMS1 Into Separate Business Areas Supports Portfolio Strategy Strategy Financials €1.9 bn €2.0 bn Focus: Growth €1.7 bn €1.6 bn › Value-accretive outperformance €1.2 bn Autonomous › Long-term profitability €0.9 bn ~10% ~8% ~8% ~9% Mobility › Innovation to expan
Slide 5: Most Important KPIs for Q1 2021
3 | Group Highlights Most Important KPIs for Q1 2021 Q1 2020 Q1 2021 Change Comments Sales €9.9 bn €10.3 bn +3.5% Organic growth 8.6%; FX -€426 mn Adjusted EBIT1 €433 mn €834 mn5 +€401 mn Excluding IFRS 5 effect: Q1/21 €812 mn Adjusted EBIT1 margin 4.4% 8.1%5 +370 bps Excluding IFRS 5 effect: Q1/21
Slide 6: Q1 2021 – Sales and Earnings Performance
3 | Group Highlights Q1 2021 – Sales and Earnings Performance Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Rubber Powertrain Automotive Rubber Powertrain Technologies Technologies Technologies Technologies Technologies Technologies 3.4% 11.7% 4,180 4,087 4,235 3,972 14.5% 12.8% 615 9.6% 1,829 1,998
Slide 7: Regional Production vs. Sales Growth by Group Sectors in Q1 2021
3 | Group Highlights Regional Production vs. Sales Growth by Group Sectors in Q1 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 25 25 80 25 70 20 20 20 60 ~+4%-pts 15 15 50 15 10 40 10 10 5 30 ~-2%-pts 5 20 5 0 10 0 -5 0 0 -5 -10 -10 -5 Europe: shar
Slide 8: Q1 2021 – Autonomous Mobility and Safety
4 | Automotive Technologies Q1 2021 – Autonomous Mobility and Safety Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 3.8% › Impact from FX: -4.1% 2,060 2,035 › Growth in China overcompensated decline in North America › Highest sales growth in Passive Safety and Sensorics Adjusted EBIT1 › Margin improvement
Slide 9: Q1 2021 – Vehicle Networking and Information
4 | Automotive Technologies Q1 2021 – Vehicle Networking and Information Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 3.7% › Impact from FX: -3.8% 2,135 2,081 › Strong demand in China and South Korea, while Europe remains soft › Outperformance dampened by decline in analog instrument clusters Adjusted E
Slide 10: Q1 2021 – Tires
5 | Rubber Technologies Q1 2021 – Tires Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 15.8% 2,743 › Impact from FX: -5.4% › Volume: +9.2% 2,484 › Recovery led by Chinese and North American replacement markets as well as truck business 455 16.6% › Price/mix: +6.7% › Strong mix contribution and replacement
Slide 11: Q1 2021 – ContiTech
5 | Rubber Technologies Q1 2021 – ContiTech Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 4.5% › Impact from FX: -4.3% 1,521 1,521 › OE: Volume recovery in Mobile Fluid Systems and Surface Solutions › Industrial and Aftermarket: Continued strength in Surface Solutions and Advanced Dynamics Solutions › St
Slide 12: Q1 2021 – Powertrain
6 | Powertrain Technologies Q1 2021 – Powertrain Sales (€ mn) Adjusted EBIT1 (€ mn) Sales 12.8% › Impact from FX: -3.5% 1,998 › Electrification Technology sales of €157 mn 1,829 (€95 mn in Q1 2020) mainly driven by high- voltage axle drives and power electronics especially in Europe › Strong develop
Slide 13: Free Cash Flow Driven by Higher EBIT and Lower Capex
7 | Cash Flow and Liquidity Free Cash Flow Driven by Higher EBIT and Lower Capex Cash Flow Q1 2021 (€ mn) Operating Investing Free cash flow before Operating Cash Flow Carve-out effects Acquisitions and divestments acquisitions, divestments, › Solid result driven by strong EBIT and and carve-out eff
Slide 14: Financial Position Remains Solid
7 | Cash Flow and Liquidity Financial Position Remains Solid Liquidity and bond maturities2 (€ mn) Credit Lines Total liquidity available Bond maturities1 › Short-term credit line of €3 bn until May 2021 10,929 › Availability of the credit facilities is not subject to financial covenants or ratings
Slide 15: Expectations for Market Development Unchanged
8 | 2021 Outlook Expectations for Market Development Unchanged Vehicle Production Replacement Tires Passenger Cars Commercial Passenger Cars Commercial & Light Trucks Vehicles & Light Trucks Vehicles Q1 2021 2021E Q1 2021 2021E Q1 2021 2021E Q1 2021 2021E Europe ~ 0% 10% to 13% ~ 20% 8% to 12% ~ 9%
Slide 16: Continental Group (Continuing Operations Only)
8 | 2021 Outlook Continental Group (Continuing Operations Only) 2021E Consolidated sales Around €32.5 bn – €34.5 bn Adj. EBIT1 margin Around 6% – 7% Automotive Technologies sales Around €16 bn – €17 bn Adj. EBIT1 margin Around 1% – 2% Rubber Technologies sales Around €16.5 bn – €17.5 bn Adj. EBIT1 m
Slide 17: Space for Sender Information Confidential
Space for Sender Information Confidential
Slide 18: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on May 6, 2021, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or recommen
Slide 19: Back-up
Back-up Space for Sender Information Q1 2021 Results – May 6, 2021 Confidential © Investor Relations Continental AG 19
Slide 20: Key Historical Credit Metrics
Back-up Key Historical Credit Metrics (€ mn)1 2017 2018 2019 5 2020 LTM Statement of Cash Flows Adjusted EBITDA 6,701 6,190 5,837 4,030 4,389 Reported EBITDA 6,679 6,236 4,977 3,034 3,276 Net cash interest paid -105 -91 -83 -137 -150 Tax paid -1,122 -848 -866 -886 -769 Change in net working capital2
Slide 21: Capex, Depreciation and Earnings per Share – Breakdown for Q1 2021
Back-up Capex, Depreciation and Earnings per Share – Breakdown for Q1 2021 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 0.15 676 642 475 292 4.8% 2.8% 2.24 2.39 1 48 41 Reported EPS PPA per EPS excl. 2 share after tax PPA1,2 2020 2021 ■ Capex (PPE), percentage of sales | ■ Depreciation,
Slide 22: 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 23: Continental's Credit Rating
Back-up Continental’s Credit Rating S&P, Fitch / Moody’s BBB+ / Baa1 Investment grade BBB / Baa2 BBB- / Baa3 BB+ / Ba1 Non-investment BB / Ba2 grade Before BB- / Ba3 Siemens VDO B+ / B1 B / B2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Standard & Poor’s1 Moody’s2
Slide 24: Fact Sheets 2020 – Q1 2021
Fact Sheets 2020 – Q1 2021 Space for Sender Information Q1 2021 Results – May 6, 2021 Confidential © Investor Relations Continental AG 24
Slide 25: 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 2,060.3 1,256.2 1,987.0 2,225.7 7,529.2 2,035.3 Autonomous Mobility and Safety 60
Slide 26: 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 151.3 -61.6 168.0 215.2 472.9 217.8 11.8 -193.9 45.8 38.6 -97.7 83.1 Vehicle Networking and Information 276.3 -225.4 -72.5
Slide 27: Reported and Adjusted Q1 2021 Results
Fact Sheets Reported and Adjusted Q1 2021 Results Autonomous Mobility Vehicle Networking Mill. EUR Tires ContiTech Powertrain Cons. / Corr. Group and Safety and Information 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Sales 2,060.3 2,035.3 2,134.5 2,080.5 2,483.5 2,742.9 1,5
Slide 28: References
References Useful Links Continental Investor Relations website www.continental-ir.com Annual and interim reports www.continental-corporation.com/en/investors/reports Fact Book / Investor Presentation www.continental.com/en/investors/reports Investor Relations www.continental.com/en/investors/events-
Slide 29: Financial Calendar
Continental Financial Calendar 2021 Annual Financial Press Conference March 9, 2021 Annual Shareholders´ Meeting April 29, 2021 Q1 Quarterly Statement May 6, 2021 Half-Year Financial Report August 5, 2021 Nine-Month Quarterly Statement November 10, 2021 Capital Market Days (Vitesco Technologies) Mar
Slide 30: Contact
Contact Equity and Debt Markets 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 Michael Saemann Phone: +49 511 938-1307 Head of IR e-mail: [email protected] Analysts, Institutional Investors