Continental Ag · XETR:CON
Continental — 9M 2021 Earnings Presentation
29 slides from Continental's earnings presentation, Nov 10, 2021
Slide 1: 9M 2021 Results
9M 2021 Results Hanover – November 10, 2021 Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Wolfgang Schaefer – CFO
Slide 2: Agenda
Agenda Current Situation 3 Business Highlights 5 Group Highlights 6 Automotive Technologies 8 Rubber Technologies 11 Cash Flow 13 2021 Outlook 14 Back-up and Fact Sheets 2020 – 9M 2021 18 Space for Sender Information 9M 2021 Results – November 10, 2021 Confidential © Investor Relations Continental A
Slide 3: Q3 Update – Current Priorities
1 | Current Situation Q3 Update – Current Priorities Review Q3 2021 Current priorities Group Operational topics › (+) Vitesco Technologies spin-off successfully concluded; trading › Semiconductor-related constraints continuing in Q4 and into 2022 commenced on September 16, 2021 › Supply chain situat
Slide 4: Reporting Structure Adapted to Match Strategy and Increase Transparency
1 | Current Situation Reporting Structure Adapted to Match Strategy and Increase Transparency Reporting structure starting Current reporting structure January 1, 2022 Continental Continental Automotive Technologies Automotive Autonomous Mobility and Safety Vehicle Networking and Information1 Vehicle
Slide 5: The GreenConcept: The Most Progressive Tire In Terms of Sustainability
2 | Business Highlight The GreenConcept: The Most Progressive Tire In Terms of Sustainability Sustainable >50% of renewable and recycled materials! Current Technologies Emerging Technologies Lightweight 40% less weight with our innovative Vegetable Oils Recycled Refreshable and Resins Carbon Black T
Slide 6: Most Important KPIs for Q3 2021
3 | Group Highlights Most Important KPIs for Q3 2021 Q3 2020 Q3 2021 Change Comments Sales €8.7 bn €8.0 bn -7.4% Organic growth -8.5%; FX -€70 mn Adjusted EBIT1 €727 mn €419 mn -€308 mn Adjusted EBIT1 margin 8.4% 5.2% -320 bps PPA2 -€42 mn -€38 mn Special effects -€1.359 mn €38 mn Carve-out effects
Slide 7: Q3 2021 – Sales and Earnings Performance
3 | Group Highlights Q3 2021 – Sales and Earnings Performance Sales (€ mn) Adjusted EBIT1 (€ mn) Automotive Rubber Contract Automotive Rubber Contract Technologies Technologies Manufacturing2 Technologies Technologies Manufacturing +0.5% -17.3% 15.0% 4,333 4,385 11.3% 4,132 651 497 3,477 8.8% 11.9%
Slide 8: Regional Production vs. Sales Growth in Q3 2021
4 | Automotive Technologies Regional Production vs. Sales Growth in Q3 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 10 10 10 10 5 5 5 5 ~+7%-pts 0 0 0 0 -5 -5 -5 -5 -10 -10 -10 -10 -15 -15 -15 -15 -20 -20 -20 -20 -25 -25 -25 -25 -30 -30 -30 -30 Eu
Slide 9: Q3 2021 – Autonomous Mobility and Safety
4 | Automotive Technologies Q3 2021 – Autonomous Mobility and Safety Sales (€ mn) Adjusted EBIT1 (€ mn) Sales -21.1% › Impact from FX: +1.1% 2,000 › Volume impact felt in all product areas, but most heavily in hydraulic braking and ADAS 1,637 › Regional impact most significant among European and Nor
Slide 10: Q3 2021 – Vehicle Networking and Information
4 | Automotive Technologies Q3 2021 – Vehicle Networking and Information Sales (€ mn) Adjusted EBIT1 (€ mn) Sales -13.2% › Impact from FX: +1.7% 2,148 › Strong semiconductor-related impact on 1,860 various business units › Year-on-year growth in Commercial Vehicle and Services, driven by fleet servi
Slide 11: Q3 2021 – Tires
5 | Rubber Technologies Q3 2021 – Tires Sales (€ mn) Adjusted EBIT1 (€ mn) Sales +2.5% › Impact from FX: +0.5% 2,889 2,976 › Volume: -5.5% › OE volumes significantly down Y-o-Y › Replacement in North America and China 17.1% above 2019 levels, while EMEA slightly below 494 › Price/mix: +8.0% 407 13.7
Slide 12: Q3 2021 – ContiTech
5 | Rubber Technologies Q3 2021 – ContiTech Sales (€ mn) Adjusted EBIT1 (€ mn) Sales -3.6% 1,470 › Impact from FX: +1.3% 1,436 › OE: volumes significantly down Y-o-Y, with strongest declines in Europe and North America › Industrial & Aftermarket: solid growth in Surface Solutions and Power Transmiss
Slide 13: Free Cash Flow Impacted by Increased Working Capital
6 | Cash Flow – Continuing and Discontinued Operations Free Cash Flow Impacted by Increased Working Capital Cash Flow Q3 2021 (€ mn) Operating Investing Free cash flow before Operating Cash Flow Carve-out effects Acquisitions and divestments acquisitions, divestments, › Inventories higher than norma
Slide 14: Expectations for Market Development Updated
7 | 2021 Outlook Expectations for Market Development Updated Vehicle Production Replacement Tires Passenger Cars Commercial Passenger Cars Commercial & Light Trucks Vehicles & Light Trucks Vehicles Q4e 2021 FY 2021E Q4e 2021 2021E Q4e 2021 2021E Q4e 2021 2021E Europe -30% to -20% -4% to -2% -10% to
Slide 15: 2021 Outlook Continental Group
7 | 2021 Outlook Continental Group (Continuing Operations Only, Unless Otherwise Stated) 2021E Consolidated sales Around €32.5 bn – €33.5 bn Adj. EBIT1 margin Around 5.2% – 5.6% Automotive Technologies sales Around €14.5 bn – €15.0 bn Adj. EBIT1 margin Around -2.0% – -2.5% Rubber Technologies sales
Slide 16: Space for Sender Information Confidential
Space for Sender Information Confidential
Slide 17: Disclaimer
Disclaimer › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on November 10, 2021, and the subsequent analyst and investor meetings. It has not been independently verified. It does not constitute an offer, invitation or re
Slide 18: Back-up
Back-up Space for Sender Information 9M 2021 Results – November 10, 2021 Confidential © Investor Relations Continental AG 18
Slide 19: Regional Production vs. Sales Growth in 9M 2021
Back-up Regional Production vs. Sales Growth in 9M 2021 Europe1 North America1 China1 Worldwide1 ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % ∆ Y-o-Y in % 10 10 10 10 9 9 9 9 ~0%-pts 8 8 8 8 7 7 7 7 6 6 6 6 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 0 0 0 0 Europe: share of sales China: share of sales PC<
Slide 20: Capex, Depreciation and Earnings per Share – Breakdown for Q3 2021
Back-up Capex, Depreciation and Earnings per Share – Breakdown for Q3 2021 Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€) 0.14 1,237 484 518 368 6.0% 1.55 1.69 4.2% 1 42 38 Reported EPS PPA per EPS excl. 2 share after tax PPA1,2 2020 2021 ■ Capex (PPE), percentage of sales | ■ Depreciation
Slide 21: Relevant Bonds
Back-up Relevant Bonds Continental AG Conti-Gummi Finance Conti-Gummi Finance Continental AG Continental AG Issuer B.V., Netherlands 1 B.V., Netherlands 1 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 (M
Slide 22: 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 2 3 Standard & Poor’s1 Mood
Slide 23: Fact Sheets 2020 – 9M 2021
Fact Sheets 2020 – 9M 2021 Space for Sender Information 9M 2021 Results – November 10, 2021 Confidential © Investor Relations Continental AG 23
Slide 24: 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 Autonomous Mobili
Slide 25: 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 1.0 -194.6 34.3 29.8 -129.5 38.4 -49.2 -71.6 Vehicle Networking and Informati
Slide 26: Reported and Adjusted 9M 2021 Results
Fact Sheets Reported and Adjusted 9M 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 5,326.2 5,536.6 5,653.1 5,923.1 7,284.4 8,
Slide 27: Useful Links to Continental Websites
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 28: Continental 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 Space for Sender Information 9M 2021 Results
Slide 29: Contact Equity and Debt Markets Relations
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