Fact Book Fiscal Year 2008
I. Continental at a Glance
Equity and Debt Markets Relations Fact Book FY 2008 2 / © Continental AG
Continental at a Glance Continental AG, based in Hanover, Germany The company was founded in 1871 It operates worldwide as an automotive supplier with sales of € 24,238.7 mn in 2008 Continental employees numbered 139,155 at the end of 2008 Acquisitions in the fields of brakes and chassis (Teves 1998) as well as electronic technologies (Temic 2001) have transformed Continental from a pure rubber based manufacturer into a leading automotive technology supplier With the acquisition of Phoenix in 2004, Continental became one of the world’s largest non-tire rubber product manufacturers Acquisition of Motorola’s Automotive Electronic Business in 2006 took active/passive safety competence of our Automotive Systems division to the next level and improved market position in North America With the acquisition of Siemens VDO Automotive AG in 2007, Continental is now an integrated automotive supplier of system solutions for powertrain and safety technologies as well as information management and has improved its market position in Europe, North America and Asia
Equity and Debt Markets Relations Fact Book FY 2008 3 / © Continental AG
Continental at a Glance Portfolio 2008 Sales 2008 € 24,238.7 mn EBIT / EBIT clean* 2008 € -296.2 mn / € 1,837.3 mn EBIT margin / EBIT margin clean* 2008 -1.2% / 7.6% Automotive Group Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Headed by: K.-T. Neumann
Headed by: K.-T. Neumann COO H. Matschi
Headed by: H.-J. Nikolin COO N. Setzer **
Headed by: H.-J. Nikolin
Headed by: H.-G. Wente Nr. 1 ww for nontire rubber products No.1 in 6 out of 7 business units in Europe
Chassis & Safety Headed by: K.-T. Neumann COO R. Cramer
Rubber Group
No.1 for foundation brakes
No.1 for transmission control
No.1 for instrument clusters
No.1 in Europe No.1 in Europe for OE
No.1 for industrial tires in Europe
No.2 for EBS and brake boosters
No.2 for diesel systems
No.1 for tachographs in CV
No.1 in Europe for winter tires
No.2 in Europe in OE
No.1 for airbag electronics
No.2 for gasoline systems
No.1 for telematics
No.3 in Europe
Sales € 5,134.0 mn Sales € 4,040.0 mn Sales € 5,856.7 mn Sales € 5,100.3 mn Sales € 1,404.2 mn Sales € 3,007.0 mn EBIT € 303.1 mn EBIT €-1,046.2 mn EBIT € -462.6 mn EBIT € 626.4 mn EBIT € 29.5 mn EBIT € 329.1 mn EBIT margin 5.9% EBIT margin -25.9% EBIT margin -7.9% EBIT margin 12.3% EBIT margin 2.1% EBIT margin 10.9% * EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects Equity and Debt Markets Relations Fact Book FY 2008 4 / © Continental AG
** Temporary
Continental at a Glance Continental Corporation – Sales / Net income* (€ million) ¼ HGB
¼ IFRS
¼ US GAAP
24,239
16,619*** 13,837
9,132 Sales EBIT NIAT**
5,333
5,719
269
322
398
607
694
533
11,534
855
33
98
165
138
1996
1997
1998
1999
205
12,597
1,157
716 226
314
2002
2003
1,507
1,602
1,676
930
982
1,021
2000
2001
-296 -1,124
-258
* From 1998 until 2003 US GAAP / from 2004 onwards IFRS ** Net income attributable to the shareholders of the parent under IFRS *** Since December 1, 2007 including Siemens VDO
5 / © Continental AG
11,408
6,743
235
Equity and Debt Markets Relations Fact Book FY 2008
10,115
11,233
14,887
2004
2005
2006
2007
2008
Continental at a Glance Continental Corporation Worldwide
Status: December 2008 Equity and Debt Markets Relations Fact Book FY 2008 6 / © Continental AG
Continental at a Glance Development of Consolidated Sales by Region 24.2
(€ billion) 4%
10% 19%
16.6 13.8 12.6 2%
7% 7% 20%
38%
3% 3%
3% 20%
36%
Other Countries
14.9 8% 7%
21%
Asia 36%
21%
37%
NAFTA Region 37%
Rest of Europe Germany 31%
33%
2004 Equity and Debt Markets Relations Fact Book FY 2008 7 / © Continental AG
34%
2005
32%
2006
31%
2007*
2008
* Since December 2007 incl. Siemens VDO
Continental at a Glance Development of Consolidated Sales by Division (€ billion)
24.2
12% 6%
16.6 13.8
14.9
19% 20% 12% 33%
9%
21%
10% 10%
32%
29% 31%
38%
Automotive Systems** Chassis & Safety
16%
Powertrain
28% 39%
Commercial Vehicle Tires Passenger and Light Truck Tires
18%
12.6 16%
21%
ContiTech
40% 7%
24%
Interior
9%
2004 Equity and Debt Markets Relations Fact Book FY 2008 8 / © Continental AG
2005
2006
2007*
2008
* Since December 2007 incl. Siemens VDO ** Until 2006
Continental at a Glance Number of Employees by Region at YE 2008 151,654 139,155 5% 12%
5% 13%
Other Countries
17%
80,586 4% 10% 15%
32%
85,224
79,849
16%
Asia 5%
5% 10%
11%
15%
17%
31%
32%
32% 33%
NAFTA Region Rest of Europe Germany
34% 39%
2004 Equity and Debt Markets Relations Fact Book FY 2008 9 / © Continental AG
39%
2005
33%
35%
2006
2007*
2008
* Since December 2007 incl. Siemens VDO
Continental at a Glance Number of Employees by Division at YE 2008 151,654 139,155 16% 6%
ContiTech 16% 6%
80,586
79,849
85,224
26% 30%
28%
13%
10%
17% 19% 18% 19%
10%
29%
28%
2004
Equity and Debt Markets Relations Fact Book FY 2008 10 / © Continental AG
31%
31%
2005
Commercial Vehicle Tires Passenger and Light Truck Tires Automotive Systems** Chassis & Safety
21% 18%
29%
35%
2006
Powertrain 22%
2007*
22%
2008
Interior
* Since December 2007 incl. Siemens VDO ** Until 2006
II. Continental Strategy
Equity and Debt Markets Relations Fact Book FY 2008 11 / © Continental AG
Continental Strategy Systematic Entrepreneurial Approach Safety
Environment
Increasing supplier share of value chain
Leading market position Growth in electronics – 85% through suppliers
Sales non-OE > 40%
Growth in difficult markets
Partnership with customers
Information Equity and Debt Markets Relations Fact Book FY 2008 12 / © Continental AG
Cost consciousness
Value creation
Globalization
Affordable Cars
Continental Strategy Megatrend Environment: Key Drivers for Zero Emissions
Equity and Debt Markets Relations Fact Book FY 2008 13 / © Continental AG
Continental Strategy EU, NHTSA and ECCJ Initiatives – Towards Cleaner Mobility EU*
EU target to reduce CO2 emissions by 2012 to 120 g/km (currently 160 g/km) Long term target to reduce CO2 emissions to 95 g/km by 2020 EU proposes requirements on tires by 2012: lower rolling resistance/ wet braking performance mandatory fitment with TPMS for passenger cars****
USA**
NHTSA targets to improve CAFE standards by 40% in 2020: Increase CAFE from 25 mpg to 35 mpg Targets are equivalent to reduce CO2 from 219 g/km to 156 g/km
Japan***
ECCJ targets to improve fuel efficiency standards by 29% in 2015: Increase average level of fuel efficiency from 13.0 km/l to 16.8 km/l Targets are equivalent to reduce CO2 from 179 g/km to 138 g/km
Emerging markets likely to follow Europe/USA/Japan on fuel consumption standards * ** *** ****
refer to proposals of the EU commission 12/2007 and the “New car safety package” proposal of the EU commission 05/2008; press release EU commission 03/2009 refer to the US Senate Committee on Commerce, Science and Transportation, press release 12/2007 refer to the Transport Division of the Council of Transport Policy 02/2007 EU parliament already voted for mandatory fitment in March 2009; press release EU commission March 10, 2009; VDA release March 13, 2009
Equity and Debt Markets Relations Fact Book FY 2008 14 / © Continental AG
Continental Strategy Reduction of CO2 Emissions*: Solutions by Continental 20-24%
Clean Diesel (SCR**) Diesel direct injection
18-22% 5-20%
Hybrid electric vehicle Gasoline direct injection
5-15%
Telematics, ACC, ADAS
5%
Energy management (AES***)
5%
Tires (rolling resistance, TPMS) Powertrain (DCT)
2-5% 4%
Transmission (POD****)
3%
Energy management (POD****)
1-2%
Brake Systems
1-2%
* ** *** ****
Saving potential compared with gasoline port fuel injection Euro 4 Selective catalytic reduction Advanced Energy Supply Power-on-demand
Equity and Debt Markets Relations Fact Book FY 2008 15 / © Continental AG
Continental offers a broad range of technologies to reduce CO2 emissions Continental products currently in series production are capable to reduce CO2 emissions already by about 26 g/km Europe and US: huge potential by penetrating fuel direct injection systems Future potential from turbocharger and Telematics technology Continental is among top 3 suppliers in the world for CO2 reducing technologies
Continental Strategy Megatrend Safety: Development of Road Safety in Europe Evolution 1990-2010 EU 25 road fatalities 70,900 70,300 66,500 61,300
59,600 59,000 55,500 56,400 55,200
54,100
52,200
50,400 49,700 46,700
50,000
43,400
41,700
46,300 39,500 42,900 39,700 36,700 34,000 31,500 29,200 27,000 25,000
*
Source: CARE (EU road accident database); National data
Equity and Debt Markets Relations Fact Book FY 2008 16 / © Continental AG
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
2010 objective: 25,000 lives to save 1994
1993
1992
1991
1990
EU fatalities
Continental Strategy EU and NHTSA Initiatives – Towards Safer Mobility EU*
ESC likely to become mandatory by 2011 on passenger cars and light vehicles and also heavy vehicles*** Advanced driver assistant systems likely to become mandatory Emergency brake system, lane deture warning for commercial vehicles by 2013*** Brake assistant for light vehicles by 2009 Investigation on legislation for mandatory equipment of E-call in EU
USA**
NHTSA: ESC mandatory for all cars sold in the US / penetration rate 2009: 55% 2010: 75% 2011: 95%
Emerging markets likely to follow Europe/USA on ESC regulation * Refer to the “New car safety package” proposal of the EU commission 05/2008 ** Refer to Federal Motor Vehicle Safety Standard No. 126 of the National Highway Traffic Safety Administration 04/2007 *** EU parliament already voted for mandatory fitment in March 2009; press release EU commission March 10, 2009, VDA release March 13, 2009 Equity and Debt Markets Relations Fact Book FY 2008 17 / © Continental AG
Continental Strategy ContiGuard® : Safety Solutions by Continental Active Safety
HMI
ESC
Electronic Stability Control
Sensors
EPS
El. Power Steering
Safety Telematics TCU
ARK
Telematics Control Unit
Active Rear Axle Kinematics
AFFP®
CSC
Chassis & Safety Controller
EAS
Electronic Air Suspension
Accelerator Force Feedback Pedal
Car-to-X
e-Horizon
Communication
Sensor Fusion (Beam/Camera)
ACU
+ CISS
Airbag Control Unit
Crash Impact Sound Sensing
Passive Safety
Equity and Debt Markets Relations Fact Book FY 2008 18 / © Continental AG
pSat, gSat Pressure and Acceleration Satellites
OCS
Occupant Classification Systems
SRL
Short Range Lidar
MRR
Mid Range Radar 24GHz
LRR
Camera
Long Range Radar 77GHz
Vehicle Surrounding Sensors
Continental Strategy Megatrend Information ─ “Always On“: Solutions by Continental Information Management in the car for driver and passengers Driver & Passengers 1
We capture commands, prioritize and present information with our intuitive and ergonomic HMI
We manage and optimize the information flow by system integration of components
2 We add new functions by connecting to the outside world and providing value add services
Devices
Vehicle
Infrastructure Services
Equity and Debt Markets Relations Fact Book FY 2008 19 / © Continental AG
Other cars
3
Continental Strategy “Sales Non-OE > 40%” 30% of sales outside OE in 2008
Non-OE 30%
OE
Non-OE
Chassis & Safety (21% of total sales)
100%
Powertrain (16% of total sales)
100%
OE 70%
Interior (24% of total sales) Chassis & Safety 30%
Powertrain 24% Interior 27%
ContiTech 9%
Commercial Vehicle Tires 2%
Equity and Debt Markets Relations Fact Book FY 2008 20 / © Continental AG
Passenger and Light Truck Tires 8%
77%
23%
Passenger and Light Truck Tire (21% of total sales)
27%
73%
Commercial Vehicle Tires (6% of total sales)
26%
74%
ContiTech (12% of total sales)
53%
47%
Continental Strategy “Cost Consciousness” – Production in Low-Cost Countries Europe 66% 56%
25%
56%
68% 69%
60%
27% 27% 21%
20% 15% 15% 13%
Rest of World
23%
18%
15% 12%
83%
81%
68%
Chassis & Safety*
Powertrain*
Interior*
Pkw-Reifen**
Nfz-Reifen**
ContiTech*
65%
56% 55% 57%
62% 62%
65%
55% 48%
49%
2006
2007
2008
41%
42%
45%
31% 23% 23% 23% 17%
14% 11% 3%
Chassis & Safety*
Powertrain*
Interior* 2006
* Based on sales Equity and Debt Markets Relations Fact Book FY 2008 21 / © Continental AG
** Based on units
2007
Pkw-Reifen** 2007***
Nfz-Reifen**
ContiTech*
2008
*** Since 2008 Korea regarded as high cost country; for comparison 2007 has been restated
III. Continental Corporation
Equity and Debt Markets Relations Fact Book FY 2008 22 / © Continental AG
Continental Corporation Sales, EBITDA & EBITDA margin 24,238.7
(€ million) 45.8%
16,619.4 2,771.4
14,887.0 Sales
11.3%
2,490.6 EBITDA EBITDA margin
2,301.5 15.5%
FY 06 EBIT clean* EBIT margin clean*
15.0%
FY 07 1,841.5** 11.1%
*
EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects
**
EBIT w/o PPA and special effects (€ -104.3 mn)
*** EBIT w/o PPA and special effects (€ -1,517.0 mn) Equity and Debt Markets Relations Fact Book FY 2008 23 / © Continental AG
11.4%
FY 08 1,837.3*** 7.6%
Continental Corporation Consolidated Key Figures 2006
(€ million) EBITDA EBIT 1) EBIT clean
2,301.5 1,601.9
in % of sales
2007 *
2008
2,490.6 1,675.8 1,841.5
2,771.4 -296.2 1,837.3
11.1
7.6
Net interest expense Income tax expense Minority interests NIAT** Earnings per share
110.6 486.7 22.7 981.9 6.72
154.2 471.7 29.3 1,020.6 6.79
706.7 75.0 45.6 -1,123.5 -6.84
R&D expense
677.0
834.8
1,498.2
4.5
5.0
6.2
805.0
896.9
1,595.2
5.4
5.4
6.6
-641.1
-10,625.6
628.5
23.1
15.9
-1.5
in % of sales
Capex
2)
in % of sales
Free cash flow ROCE (avg.) in %
3)
* Since December 2007 incl. Siemens VDO ** Net Income attributable to the shareholders of the parent 1) EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects 2) Capex including software 3) New definition of operating assets
Equity and Debt Markets Relations Fact Book FY 2008 24 / © Continental AG
Continental Corporation Net Indebtedness Walk-Down (FY 2007 to FY 2008) (€ million)
323.4
102.4
10,856.4
380.9 10,483.5 350.0
* EMD, furniture covering business of Benecke-Kaliko, Phoenix Dichtungstechnik GmbH, HUF Hülsbeck, ETAS Equity and Debt Markets Relations Fact Book FY 2008 25 / © Continental AG
FX and others
Disposals
Free cash flow bef. aqc./disp.
Acquisitions
Dividend 2007
*
Net debt (end FY 2008)
189.6%
158.3%
Net debt (end FY 2007)
Gearing ratio
67.8
Continental Corporation Net Indebtedness & Gearing Ratio (€ million) US-GAAP
189.6%
IFRS
168.2%
158.3%
617.5
517.7
525.0
32.8
29.5
28.2
20.4
13.0
19.4
7.8
6.9
YE
YE
YE
YE
YE
YE
YE
Q1
H1
9M
YE
2001
2002
2003
2004
2005
2006
2007
2,601.1
10,856.4
110.7%
58.9%
1,899.0
30.0% 13.0%
1,168.6
10.483,5
10,807.1
146.0%
10,978.4
156.4%
11,221.1
Equivalent to 189.0% under IFRS accounting
162.3%
25.1%
1,181.0 881.1 493.2
Off balance sheet debt Equity and Debt Markets Relations Fact Book FY 2008 26 / © Continental AG
Net indebtedness
2008 Gearing Ratio
Continental Corporation Financial Indebtedness - Maturity Scheme 5,832.5
(€ million)
3,566.5 2,349.0
289.9 2009 Thereof ● MTLRCF* Tranche A € 799.7 mn ● MTLRCF* Tranche D € 887.2 ● Sale of receivables € 251.0 mn Note: all outstanding amounts are book values Equity and Debt Markets Relations Fact Book FY 2008 27 / © Continental AG
2010
2011
2012
25.1
54.3
2013
later
Thereof Thereof Thereof ● MTLRCF* ● Certificate ● MTLRCF* of indebted- Tranche C Tranche B ness (CDI) € 3,491.5 € 4,984.3 mn € 109.8 mn mn
* Multicurrency term loans and revolving credit facility
Continental Corporation Financial Indebtedness - Structure of MTLRCF* (€ million) 3,806.6
Tranche A Maturity 08/2009 Tranche B Maturity 08/2010
unutilized credit lines and cash year end 2008
800.0
3,500.0
Tranche C Maturity 08/2012 Tranche D Maturity 08/2012 * Multicurrency term loans and revolving credit facility (nominal value) Equity and Debt Markets Relations Fact Book FY 2008 28 / © Continental AG
5,000.0
895.0
Continental Corporation Purchasing / Production Materials 2008 Total production material purchased in 2008: € 11.0 bn (71% of total purchased volume)
Purchasing contracts / hedging strategies: ►Continental Corporation does not hedge prices/currencies within purchasing
Others 14% (textiles, plastics, brake pads)
Metal parts 17%
Natural rubber 6%
(e.g. drawn and turned parts)
Oil-based chemical products 15% (e.g. synthetic rubber, carbon black)
Components 48% (e.g. electronic and sensor modules, electro mechanical and mechanical components)
►Long-term contracts are closed on an opportunistic basis
►Oil derivatives for chemical products cause a time difference until realization in purchase price of 2 – 6 months from spot price
►Main sources for natural rubber are Thailand, Malaysia and Indonesia
►Continental has a wide range of worldwide sources for production materials
Equity and Debt Markets Relations Fact Book FY 2008 29 / © Continental AG
IV. Market Data
Equity and Debt Markets Relations Fact Book FY 2008 30 / © Continental AG
Market Data Increasing Installation Rates of Electronic Brake Systems Installation Rates for Passenger Cars & Light Trucks Europe
100%
North America
100%
EBS
80%
EBS
80%
ESC 60%
ESC
60%
40%
ABS
40%
ABS TCS
20%
20%
TCS
0%
0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Japan
100%
2004
2005
2006
2007
80%
ABS 60%
60%
40%
40%
2008
2009
2010
2011
2012
2013
China*
100%
EBS
80%
2003
EBS ABS
ESC 20%
20%
TCS
ESC
TCS 0%
0% 2003
2004
2005
2006
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 31 / © Continental AG
2007
2008
2009
2010
2011
2012
2013
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
*Excl. local trucks
Market Data Installation Rates of Fuel Injection Systems* Installation Rates Passenger Cars & Light Trucks Europe
100% 80%
Diesel injection
60%
100% 80%
North America Gasoline port fuel injection
60%
40%
Gasoline port fuel injection
20%
Gasoline direct injection
0%
40% 20%
Gasoline direct injection Diesel injection
0% 2005 2006 2007 2008 2009 2010 2011 2012 2013
Japan
100% 80%
Gasoline port fuel injection
2005 2006 2007 2008 2009 2010 2011 2012 2013
80%
60%
60%
40%
40%
20%
20%
Diesel injection
Gasoline direct injection
0%
0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 32 / © Continental AG
China
100%
Gasoline port fuel injection
Diesel injection Gasoline direct injection
2005 2006 2007 2008 2009 2010 2011 2012 2013 *Based on production of diesel and gasoline engines
Market Data Increasing Installation Rates of Double Clutch Transmission* Installation Rates Passenger Cars & Light Trucks Europe
100%
North America
100%
MT
80% 60%
80% 60%
DCT AMT
40%
DCT
40%
CVaT
AT
AT
CVaT MT
20%
AMT
20%
0%
0% 2003 2004
2005
2006 2007
2008
2009 2010
2011
2012 2013
Japan
100% 80%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
China
100% 80%
AT
MT
60%
60%
40%
MT
CVaT
40%
CVaT
20%
AT
20%
AMT DCT 0%
AMT DCT
0% 2003
2004
2005
2006
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 33 / © Continental AG
2007
2008
2009
2010
2011
2012
2013
2003
2004
2005 2006
2007
2008
2009
2010 2011
2012
2013
*Based on production of gearboxes
Market Data Increasing Installation Rates of Embedded Telematics* 40%
30%
North America 20% Europe 10%
Japan China
0% 2008
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 34 / © Continental AG
2009
2010
2011
2012
2013
*Based on sales (units)
Market Data Increasing Installation Rates of Keyless Entry Systems* Europe
North America
100%
100%
80%
80%
60%
Active keyless entry systems
60%
40%
40%
20%
20% Passive keyless entry systems
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013
Japan
China 80% Active keyless entry systems
60% 40%
Passive keyless entry systems
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 80%
Active keyless entry systems
60% Active keyless entry systems 40%
20%
20% Passive keyless entry systems
Passive keyless entry systems 0%
0% 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Strategy Analytics Equity and Debt Markets Relations Fact Book FY 2008 35 / © Continental AG
2005 2006 2007 2008 2009 2010 2011 2012 2013 *Based on sales (units)
Market Data Increasing Installation Rates of Multimedia Systems* Europe
North America
100%
100%
80%
80% Radio
60%
60% 40%
40% 20%
Radio
Multimedia systems
20%
Multimedia systems
0%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013
2005 2006 2007 2008 2009 2010 2011 2012 2013
Japan
100% 80%
China 100% 80%
60%
Radio
60%
Radio
40%
40%
20%
Multimedia systems
0%
20%
Multimedia systems
0% 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 36 / © Continental AG
2005 2006 2007 2008 2009 2010 2011 2012 2013 * Navigation stand-alone system and navigation systems with enriched multimedia functions
Market Data Production of Light Vehicles 2008* – 2010* (in million units)
**
2008
2009
Western Europe
14.7
11.5 - 13.0
13.2
Eastern Europe
6.4
5.5 - 6.0
6.2
12.7
9.0 - 11.0
11.7
3.8
2.5 - 3.0
3.1
28.1
24.3 - 26.5
28.1
1.6
1.0 - 1.7
1.7
67.3
53.8 - 61.2
64.0
NAFTA South America Asia Africa & Middle East Total
Source: Global Insight January 2009 Equity and Debt Markets Relations Fact Book FY 2008 37 / © Continental AG
* Estimates for passenger cars and light trucks < 6 tons (including vans)
2010
** Market estimates
Market Data Production of Heavy Vehicles 2008* – 2010* (in thousand units)
**
2008
2009
Western Europe
559
280 - 440
474
Eastern Europe
206
180 - 200
204
NAFTA
366
275 - 290
408
South America
195
155 - 180
158
Asia
1,362
1,290 - 1,300
1,388
Total
2,689
2,180 - 2,410
2,632
Source: Global Insight December 2008 Equity and Debt Markets Relations Fact Book FY 2008 38 / © Continental AG
* Estimates for trucks > 6 tons
2010
** Market estimates
Market Data World Light Vehicle Tire Sales: Forecast 2008* - 2012* (in million units)
Americas NAFTA South America
Europe Western Europe Central Europe Eastern Europe
Asia Oceania Africa Middle East & Turkey Total Source: LMC World Tyre Forecast Service, January 2009 Equity and Debt Markets Relations Fact Book FY 2008 39 / © Continental AG
2008
2009
2010
2011
2012
398
378
381
395
406
328 70
308 70
309 72
319 75
327 79
376
356
363
379
393
273 36 67
255 36 65
259 37 68
267 38 73
274 40 78
355 21 32 65
357 21 33 67
374 22 34 73
399 23 36 79
427 23 37 84
1,247
1,212
1,247
1,309
1,370 * Estimates for OE and Replacement
Market Data Medium and Heavy Truck Tire Sales: Forecast 2008* - 2012* (in million units)
2008
2009
2010
2011
2012
Americas
38
37
37
39
40
NAFTA South America
24 14
23 14
23 14
24 15
25 16
Europe
27
24
25
26
27
Western Europe Central Europe Eastern Europe
14 2 10
12 2 10
12 2 10
13 2 11
14 2 11
Asia Oceania Africa Middle East & Turkey
76 2 6 10
75 2 6 10
79 2 6 11
84 2 6 11
89 2 7 12
159
154
160
169
177
Total Source: LMC World Tyre Forecast Service, January 2009 Equity and Debt Markets Relations Fact Book FY 2008 40 / © Continental AG
* Estimates for OE and Replacement
Market Data Replacement Tire Market – Sales Outlook (in million units) Replacement of passenger, light truck and 4x4 tires 262.9 252.2 218.9
212.9
199.2
193.6
254.6 231.0
78.7
50.3
51.3
52.8
2008
2009*
2010*
Equity and Debt Markets Relations Fact Book FY 2008 41 / © Continental AG
64.9
18.2
18.6
60.4 19.1
13.1
76.4
Source: LMC World Tyre Forecast Service, January 2009
62.0
196.0
76.3
North America Asia Western Europe Eastern/Central Europe South America
Replacement of truck tires
12.4
12.7
10.5
10.3
10.5
8.6
8.3
8.4
2008
2009*
2010*
Asia North America South America Eastern/Central Europe Western Europe
* Estimates
V. Automotive Group
Equity and Debt Markets Relations Fact Book FY 2008 42 / © Continental AG
Automotive Group Financials (€ million) EBIT and EBIT margin w/o PPA* and special effects by division
Automotive Group: Sales by division
14,900.0
5,856.7
908.9
525.9
- 130.7
9.0%
- 0.1
6.1%
cons.
total
519.9
4,040.0
10.1%
5,134.0
-3.4%
-136.8
C&S
PT
I
cons.
total
* Amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) Equity and Debt Markets Relations Fact Book FY 2008 43 / © Continental AG
C&S
PT
I
Automotive Group Key Figures 2007 *
(€ million) Sales EBITDA in % of sales
EBIT in % of sales 1)
EBIT clean
in % of sales
Operating Assets (avg.) ROCE (avg.) in %
2)
2)
R&D expense in % of sales
Capex
3)
in % of sales 4)
Depreciation in % of sales
1) EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments 5) Including goodwill impairment of € 1,230.0 mn
Equity and Debt Markets Relations Fact Book FY 2008 44 / © Continental AG
2008
7,295.9 903.7
14,900.0 1,428.8
12.4
9.6
504.3
-1,205.8
6.9
-8.1
654.5
908.9
9.0
6.1
6,364.6
14,734.3
7.9
-8.2
623.9
1,276.2
8.6
8.6
474.9
1,095.6
6.5
7.4
399.4
2,634.6
5)
5.5
17.7
5)
* Since December 1, 2007 including Siemens VDO
Automotive Group Sales Structure by Region Sales in 2008: € 14.9 bn
Asia 13%
Others 3%
Germany 34%
NAFTA 21%
Rest of Europe 29% Equity and Debt Markets Relations Fact Book FY 2008 45 / © Continental AG
V.1. Chassis & Safety
Equity and Debt Markets Relations Fact Book FY 2008 46 / © Continental AG
Chassis & Safety Business Structure Chassis & Safety Hydraulic Brake Systems
Electronic Brake Systems ● Hydraulic-electronic control units (HECU) - ABS - ESC - MAB/MIB ● Software functions - Regenerative brake system - Hill start assist - Hill descent control - Deflation detection system - Hydraulic brake assist - Trailer stability program
Equity and Debt Markets Relations Fact Book FY 2008 47 / © Continental AG
● ● ● ● ● ● ● ●
Calipers & discs Drum brakes Brake hoses Boosters Tandem master cylinders Electric parking brakes Pedal modules Brake pressure regulators
Sensorics
● ● ● ● ● ● ● ● ● ● ●
Wheel speed sensors Transmission speed sensors Engine speed sensors Sensor clusters Inertial measuring units Torque sensors Steering angle sensors Buckle switch sensors Chassis sensors Displacement sensors Seat position sensors
Passive Safety & ADAS ● Airbag control units with & w/o roll over sensors ● Hybrid gateways ● Pre-crash sensors ● Force sensor interfaces ● Occupant classification systems ● Advanced driver assistance systems: - Adaptive cruise control - Collision mitigation system - Lane keeping assistance - Lane change assistance J using: - RADAR - LIDAR - CAMERA - Sensor fusion ECU
Chassis Components
● Chassis electronics - Chassis control mgt. - ECU - Damping control - ECU - Dynamic mgt. - ECU - Accelerator force feedback pedal ● Electronic components (1st tier customers) - ABS & ESC - ECU - Electric parking brake ECU ● Steering systems - Steering - ECU - Power pack ● Suspension systems - Air spring module - Air supply unit - Air suspension - ECU - Sensors ● Washer systems - Hoses - Nozzles - Pumps - Reservoirs
Chassis & Safety Financials 10.4%
(€ million) Sales
EBITDA
4,521.7
744.8
4,648.6
796.4 -0.8%
789.9
16.5%
17.1%
15.4%
FY 06
FY 07
FY 08
EBIT clean*
582.5**
519.9***
EBIT margin clean*
12.5%
10.1%
EBITDA margin
*
EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects
**
EBIT w/o PPA and special effects (€ -8.7 mn)
*** EBIT w/o PPA and special effects (€ -161.8 mn) Equity and Debt Markets Relations Fact Book FY 2008 48 / © Continental AG
5,134.0
Chassis & Safety Key Figures (€ million) Sales EBITDA in % of sales
EBIT in % of sales
2007
4,521.7 744.8
4,648.6 796.4
5,134.0 789.9
16.5
17.1
15.4
528.3
567.0
303.1
11.7
12.2
5.9
582.5
519.9
12.5
10.1
2,272.9
2,876.6
4,494.4
23.2
19.7
6.7
330.4
347.5
423.6
7.3
7.5
8.3
279.1
279.8
336.0
6.2
6.0
6.5
216.5
229.4
486.8
5)
4.8
4.9
9.5
5)
1)
EBIT clean
in % of sales
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments 5) Including goodwill impairment of € 145.2 mn
Equity and Debt Markets Relations Fact Book FY 2008 49 / © Continental AG
*
2006
2008
* Since December 1, 2007 including Siemens VDO
Chassis & Safety Sales Structure by Region Sales in 2008: € 5.1 bn
Asia 17%
Others 3%
NAFTA 18%
Rest of Europe 27% Equity and Debt Markets Relations Fact Book FY 2008 50 / © Continental AG
Germany 35%
Chassis & Safety Market Position for Electronic Brake Systems 2008 North America
Europe TRW 10%
Bosch 42%
TRW 18% Others 2%
Bosch 36%
Continental 46%
Advics 8%
Continental 31%
World TRW 9%
Advics 9%
Bosch 33%
Others 14%
Continental 35%
Asia/Pacific
South America TRW 21%
Others 19%
Bosch 47%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 51 / © Continental AG
Advics 26%
Continental 13%
TRW 3%
Bosch 24%
Others 21% Continental 26%
Others 7%
Chassis & Safety Market Position for Foundation Brake Systems 2008 Europe
North America Others 20%
TRW 28%
Akebono 14%
Advics 10%
Nissin Kogyo 7% Mando 6%
TRW 19%
World
Bosch 18%
Continental 34%
South America
Nissin Kogyo 5% Akebono 8% Advics 9%
TRW 35% Bosch 11%
Source: Continental
Others 3%
Continental 51%
Equity and Debt Markets Relations Fact Book FY 2008 52 / © Continental AG
Others 11% Continental 10%
Bosch 23%
Mando 6% Others 26% TRW 17%
Bosch 13%
Continental 16%
Asia/Pacific Hitachi 7%
Others 36%
Mando 11%
Nissin Kogyo 7%
Continental 3% Bosch 3%
Akebono 10%
Advics 17%
TRW 6%
Chassis & Safety Market Position for Actuation 2008 Europe
North America
TRW 22% Bosch 26%
Others 14%
Bosch 25%
Continental 38%
Nissin Kogyo 5% Mando 4% Delphi 15%
World Nissin Kogyo 4% Advics 8% TRW 14%
Mando 5%
Bosch 24%
Delphi 6%
Others 17%
Continental 22%
Others 4%
Continental 22%
Asia/Pacific
South America TRW 26%
Bosch 22%
Advics 11%
TRW 14%
Others 3%
Delphi Hitachi 4% Mando 4% 10%
JABF 7%
Others 19% Continental 5%
Nissin Kogyo 8%
Source: Continental
Continental 49%
Equity and Debt Markets Relations Fact Book FY 2008 53 / © Continental AG
Advics 16%
TRW 4%
Bosch 23%
Chassis & Safety Growing Sales Volume for Electronic Brake Systems (million units worldwide)
Model Selection
18
Europe
16 14 12 ESC
BMW 1 Series / 3 Series Landrover Freelander Mercedes C Class / S Class Ford Focus Opel Astra VW Golf Renault Twingo Peugeot 207 Seat Altea Volvo S80
10 NAFTA
8 6 4
ABS/TCS
2 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Equity and Debt Markets Relations Fact Book FY 2008 54 / © Continental AG
Dodge Caravan / Voyager Ford Explorer / Escape Jeep Wrangler GM Cruze / Equinox Nissan Frontier Toyota Tundra VW Jetta
Asia Daewoo Windstorm Honda Accord Mazda Axela Suzuki Wagon R Mitsubishi Lancer Subaru Legacy
Chassis & Safety Manufacturing Sites: Germany & Rest of Europe Germany
Rest of Europe
Bebra
Washer systems
Adrspach, Czech Rep.
Washer systems
Frankfurt
Electronic brake systems (e.g. ESC, ABS)
Boussens, France
Speed sensors
Dortmund
Speed sensors, buckle switch sensors
Budapest, Hungary
EBS control units, sensor clusters
Gifhorn
Tandem master cylinders, calipers, brake hose assemblies brake valves, valve blocks, suspension systems
Cairo Montenotte, Italy
Drum brakes
Ebbw Vale, UK
Calipers, drum-in-hat brakes
Hanover
Suspension systems
Frenstat, Czech Rep.
Speed sensors
Ingolstadt
Airbag control units, camera, airbag sensors
Jičín, Czech Republic
Brake boosters, tandem master cylinders
Karben
Sensor clusters, ABS control units, electric parking brake (EPB) control units, chassis electronics
Mechelen, Belgium
Electronic brake systems, wheel speed sensors
Korbach
Brake hoses
Palmela, Portugal
Calipers
Nuremberg
EPB control units, radar, chassis electronics
Sibiu, Romania
Electric parking brake, airbag control units
Regensburg
Airbag control units, pressure satellites, acceleration satellites, crash impact sound sensing, occupant classification systems, camera, radar, steering systems, chassis electronics
Toulouse, France
ABS control units, chassis electronics
Timişoara, Romania
Airbag control units, EPB control units
Veszprém, Hungary
Speed sensors, sensor clusters, chassis sensors, torque sensors, steering angle sensors
Zvolen, Slovakia
Calipers
Rheinböllen
Calipers
Würzburg
Steering systems
Equity and Debt Markets Relations Fact Book FY 2008 55 / © Continental AG
Chassis & Safety Manufacturing Sites: America & Asia America
Asia
Ciudad Juarez, Mexico
Speed sensors, washer systems
Cuautla, Mexico
EBS control units, airbag control units
Guadalajara, Mexico
Airbag control units, occupant classification systems, ABS control units
Culpeper, VA, USA
Speed sensors, airbag control units, ABS control units
Calamba, Philippines
Chassis sensors, sensor clusters, airbag sensors, chassis electronics
Cheongwon, Korea
Speed sensors, buckle switch sensors, ABS control units
Hamakita, Japan
Electronic brake systems
Hiroshima, Japan
Calipers, brake valves, tandem master and wheel cylinders, brake boosters
Ichon, Korea
Airbag control units , ABS control units
Lian Yun Gang, China
Speed sensors
Manesar, India
Speed sensors
Manila, Philippines
EBS control units
Penang, Malaysia
EPB control units
Shanghai, China
EBS control units
Tandem master cylinders, valve blocks
Henderson, NC, USA
Calipers, drum-in-hat-brakes, brake corners
Las Colinas, Mexico
Brake boosters, tandem master cylinders
Morganton, NC, USA
Electronic brake systems, suspension systems
Salto, Brasil
Speed sensors
Seguin, TX, USA
Chassis electronics
Silao, Mexico
Wheel speed sensors
Varzea Paulista, Brazil
Brake boosters, calipers, brake valves, drum-in-hat brakes, drum brakes, tandem master cylinders, cylinders, brake hose assemblies
Equity and Debt Markets Relations Fact Book FY 2008 56 / © Continental AG
Changchun, China
Chassis & Safety Selected Cooperations & Joint Ventures Asia
Europe Fit Automoción S.A. Bergara, Spain
Calipers
Alphapeak Ltd. Lichfield, UK
Engineering services & prototypes
South Africa Alfred Teves Brake Systems (PTY) Ltd.* Boksburg, South Africa
* Licensee Equity and Debt Markets Relations Fact Book FY 2008 57 / © Continental AG
Calipers, brake boosters, cylinders, drum brakes
Shanghai Automotive Brake Systems Co. Ltd. (SABS), Shanghai, China
Electronic brake systems, brake boosters, tandem master cylinders, calipers, brake hose assemblies
Continental Teves Taiwan Co. Ltd.
Tandem master cylinders, wheel cylinders, clutch cylinders, calipers, electronic brake systems
Jilin Automotive Brake Factory (JABF)* Changchun, China
Brake boosters, master cylinders
Aisin Seiki Co, Ltd.* Karia City, Japan
Block steel valve, ABS, TCS
Omron Co.* Kamaki City, Japan
Acceleration sensors (LIDAR)
San Yes Automotive Industry Co. Ltd.* Tainan, Taiwan
Tandem master cylinders, wheel cylinders, clutch cylinders
Mando India (MBSI)* Chennai, India
Calipers, brake boosters, tandem master cylinders, brake reservoirs
Toklan Toos Ind. Mfg. Co.* Mashad, Iran
ABS, brake boosters, tandem master cylinders, brake reservoirs
Hema Indüstri A.S.* Istanbul, Turkey
Brake boosters, tandem master cylinders, wheel cylinders, calipers, drum brakes, brake valves
V.2. Powertrain
Equity and Debt Markets Relations Fact Book FY 2008 58 / © Continental AG
Powertrain Business Structure Powertrain
Engine Systems
Engine management systems and fuel components for ● Diesel piezo common rail injection systems ● Gasoline piezo direct injection ● Gasoline solenoid direct injection ● Gasoline port fuel injection ● Liquefied petroleum gas (LPG) and compressed natural gas (CNG) Engine management systems and aftertreatment controller for commercial vehicles applications
Transmissions
Control Units for ● Automatic transmission ● Double clutch transmission ● Automated manual transmission ● Continuously variable transmission
Hybrid Electric Vehicle
System and components for HEV applications ● Power electronic ● Electric motor ● Battery system ● Energy management Power net systems
Control Units for four- and all wheel drive applications ● Transfer cases ● Differentials ● Limited slip coupling
Sensors & Actuators
Engine actuators ● Electronic throttle control ● Air control valve ● General purpose actuator ● Thermal management Components and modules for ● Emission management ● Exhaust actuators ● Evaporative diagnostics Sensor for powertrain applications ● NOx, MAF, transmission sensor modules, position ● Pressure, temperature, knock, cylinder pressure ● Flex fuel, oil level, oil quality Door handle sensors
Turbocharger
Equity and Debt Markets Relations Fact Book FY 2008 59 / © Continental AG
Fuel Supply
Components and modules for fuel supply management ● Fuel pumps ● Level sensors ● In-tank venting systems ● Electronics for demand regulation ● Fuel supply modules
Powertrain Financials 4,040.0
(€ million)
243.2%
Sales 1283.1 %
EBITDA
19.2
81.6
5.9 1,177.0
650.7 EBITDA margin
3.0%
FY 06
*
0.5% FY 07
FY 08
EBIT clean*
-5.3**
-136.8***
EBIT margin clean*
-0.5%
-3.4%
EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects
** EBIT w/o PPA and special effects (€ -48.2 mn) *** EBIT w/o PPA and special effects (€ -659.2 mn) Equity and Debt Markets Relations Fact Book FY 2008 60 / © Continental AG
2.0%
Powertrain Key Figures *
(€ million)
2006
2007
Sales EBITDA
650.7 19.2
1,177.0 5.9
4,040.0 81.6
3.0
0.5
2.0
-21.2
-73.5
-1,046.2
-3.3
-6.2
-25.9
-5.3
-136.8
-0.5
-3.4
227.7
1,592.9
4,610.8
-9.3
-4.6
-22.7
R&D expense
77.7
144.9
420.1
in % of sales
11.9
12.3
10.4
46.6
129.6
494.4
7.2
11.0
12.2
40.4
79.4
1,127.8
5)
6.2
6.7
27.9
5)
in % of sales
EBIT in % of sales 1)
EBIT clean
in % of sales
Operating Assets (avg.) ROCE (avg.) in %
Capex
2)
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments 5) Including goodwill impairment of € 609.6 mn
Equity and Debt Markets Relations Fact Book FY 2008 61 / © Continental AG
2008
* Since December 1, 2007 including Siemens VDO
Powertrain Sales Structure by Region Sales in 2008: € 4.0 bn
Asia 13%
Others 1%
Germany 28%
NAFTA 22%
Rest of Europe 36% Equity and Debt Markets Relations Fact Book FY 2008 62 / © Continental AG
Powertrain Market Position for Diesel Injection Systems 2008* Europe Delphi 10%
Denso 6%
North America Continental 16% Bosch 47%
Bosch 68%
Continental 53%
World Denso 13%
Delphi 9%
Continental 18%
Bosch 60%
Asia**
South America Denso 29%
Delphi 13%
Continental 37%
Bosch 41%
Bosch 34%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 63 / © Continental AG
* For passenger cars & light trucks
Continental 1%
Denso 45%
** Japan, South Korea, China, India, Thailand
Powertrain Market Position for Gasoline Injection Systems 2008* Europe
North America
Hitachi 6% Bosch 39%
Denso 6% Magneti Marelli 6%
Continental 37%
Hitachi 8%
Visteon 9%
Bosch 12%
Valeo 3% Others 3%
Keihin Magneti Marelli 4% 5%
Hitachi 7%
Others 11%
Delphi 15% Denso 15%
Continental 20% Bosch 23%
Asia**
South America Delphi 32%
Valeo 8%
Visteon 8%
Continental 16%
Delphi 31%
Denso 16%
World
Keihin 7% Others 1%
Hitachi 9%
Bosch 4% Others 7%
Keihin 7%
Melco 5%
Others 10% Continental 11%
Delphi 10%
Continental 7%
Source: Continental
Magneti Marelli 34%
Equity and Debt Markets Relations Fact Book FY 2008 64 / © Continental AG
Bosch 22% * For passenger cars & light trucks
Denso 26% ** Japan, South Korea, China, India, Thailand
Powertrain Market Position for Transmission Control Units 2008* Europe
North America Others 15%
Bosch 31%
Denso 15%
Visteon 10%
Hitachi 9%
Continental 20%
Continental 54%
Delphi 19%
Bosch 23%
World
Denso 13%
Delphi 5%
Asia** Others 15% Continental 24%
Aisin 12%
Hitachi 12% Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 65 / © Continental AG
Others 4%
Bosch 11%
Hitachi 19%
Keihin 8%
Denso 18%
Bosch 19%
Others 14%
Aisin 20% * For passenger cars & light trucks
Continental 10% ** Japan, South Korea, China, India
Powertrain Manufacturing Sites: Germany & Rest of Europe Germany
Rest of Europe
Bebra
Sensors & Actuators, Fuel Supply Systems, Transmission
Adrspach, Czech Rep.
Fuel Supply Systems
Dortmund
Fuel Supply Systems, Sensors & Actuators
Birmingham, UK
Fuel Supply Systems
Gifhorn
Hybrid Electric Vehicles
Boussens, France
Sensors & Actuators
Karben
Engine Systems, Sensors & Actuators, Fuel Supply Systems
Brandys, Czech Rep.
Fuel Supply Systems
Budapest, Hungary
Sensors & Actuators
Limbach-Oberfrohna
Engine Systems
Foix, France
Engine Systems, Transmission
Mühlhausen
Sensors & Actuators
Frenstat, Czech Rep.
Engine Systems, Sensors & Actuators, Hybrid Electric Vehicles, Transmission
Nuremberg
Engine Systems, Hybrid Electric Vehicles, Transmission
Kaluga, Russia
Engine Systems
Paris, France
Engine Systems
Pisa, Italy
Engine Systems
Sibiu, Rumania
Engine Systems, Transmission
Trutnov, Czech Rep.
Engine Systems, Sensors & Actuators
Regensburg
Engine Systems, Sensors & Actuators, Transmission
Roding
Engine Systems
Equity and Debt Markets Relations Fact Book FY 2008 66 / © Continental AG
Powertrain Manufacturing Sites: America & Asia America
Asia
Columbia/Blythewood, USA
Engine systems
Amata City, Thailand
Engine systems
Cuautla, Mexico
Engine systems, transmission
Bangalore, India
Engine systems, sensors & actuators, fuel supply systems
Elkhart, IN, USA
Sensors & actuators Calamba, Philippines
Sensors & actuators, transmission
Changchun, China
Engine systems, electronics, sensors & actuators, transmission
Chongwongun, Korea
Sensors & actuators
Ichon, Korea
Engine systems, sensors & actuators, transmission
Melbourne, Australia
Sensors & actuators
Penang, Malaysia
Engine Systems, sensors & actuators, fuel supply systems
Elma, NY, USA
Sensors & actuators, hybrid electric vehicle
Guadalajara, Mexico
Engine systems, transmission
Guarulhos/Salto, Brazil
Engine Systems, sensors & actuators, fuel supply systems
Huntsville, AL, USA
Engine systems, transmission
Juarez, Mexico
Sensors & actuators, fuel supply systems
Newport News, VA, USA
Engine systems
San Jose, Costa Rica
Transmission, engine systems
Shanghai, China
Engine systems, transmission
Seguin, TX, USA
Diesel systems, electronics, transmission controls
Tianjin, China
Engine systems, hybrid electric vehicles, transmission
Wuhu, China
Fuel supply systems, sensors & actuators
Equity and Debt Markets Relations Fact Book FY 2008 67 / © Continental AG
Powertrain Selected Cooperations & Joint Ventures Asia
Europe Emitec GmbH Lohmar, Germany
METALIT® metal substrate for three-way catalysts, catalysts with turbulent structures, lambda sensor catalysts, diesel oxidation catalysts, PM-METALIT® (catalyst and particulate filter), PT™-METALIT® (pre-turbo catalysts), selective catalytic reduction (SCR) catalysts with structured foils, electrical heated catalysts EMICAT®, CompactCat®, TwinCat®, hybrid catalysts
IAV GmbH Berlin, Germany
Vehicle development, vehicle electronics, powertrain development, powertrain mechatronics
SupplyOn AG Hallbergmoos, Germany
Internet platform provider for automotive suppliers
Cooperation: ZF Friedrichshafen, Germany
Development and commercialization of hybrid technology for passenger cars and light trucks
DUAP AG Herzogenbuchsee, Switzerland
Diesel fuel injection systems for marine, traction, stationary and automotive applications
AVTEL (OOO NPP Avtoelektronika-Elcar) Kaluga, Russia
Engine controls, sensors and injectors
OOO Continental Automotive Engineering RUS Moscow, Russia
Engineering, development and services for the local automotive industry
Injectors (only merchandise sales) Kemsco to be closed soon
CASCO (Continental Automotive Systems Corporation) Icheon, Korea
Electronic fuel injection systems
ENAX, Inc., Tokyo, Japan
Development of LiIon battery cells and processes for battery cell production
America
Equity and Debt Markets Relations Fact Book FY 2008 68 / © Continental AG
KEMSCO (Korea EMS Co. Ltd.), Icheon, Korea
Synerject LLC Newport News, USA
Engine management solutions for non-automotive market including full engine management systems, modules and components: - Components: sensors, actuators, fuel pumps, injectors, regulators - Modules: fuel rails with injectors & regulators, fuel regulator pocket - Systems: including engine & vehicle control software
V.3. Interior
Equity and Debt Markets Relations Fact Book FY 2008 69 / © Continental AG
Interior Business Structure Interior Commercial Vehicles & Aftermarket
Body & Security
● ● ● ●
Body control units Door control units Seat control units Active/passive car access ● Tire information systems ● Antenna modules ● Battery & energy management
● Tachographs & services ● Telematics ● Instrumentation & ● Device connectivity telematics ● Seamless mobile ● Control systems integration ● Aftermarket ● Original equipment Services
Equity and Debt Markets Relations Fact Book FY 2008 70 / © Continental AG
Connectivity
Instrumentation & Displays ● Instrument clusters ● Secondary displays ● Head-up displays
Interior Modules
● ● ● ● ●
Climate controls Cockpit systems Roof modules Integrated center stacks Haptic controls
Multimedia
● Radios ● Connected radio & navigation ● Multimedia systems ● Software & special solutions
Interior Financials (€ million)
282.4%
5,856.7
Sales
450.1%
EBITDA 69.9
858.6
557.3
101.3
1,531.6 9.5%
8.1%
6.6%
FY 06
FY 07
FY 08
EBIT clean*
77.3**
525.9***
EBIT margin clean*
5.0%
9.0%
EBITDA margin
*
EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects
**
EBIT w/o PPA and special effects (€ -38.9 mn)
***
EBIT w/o PPA and special effects (€ -683.8 mn)
Equity and Debt Markets Relations Fact Book FY 2008 71 / © Continental AG
Interior Key Figures 2007 *
(€ million)
2006
Sales EBITDA
858.6 69.9
1,531.6 101.3
5,856.7 557.3
8.1
6.6
9.5
25.1
10.8
-462.6
2.9
0.7
-7.9
77.3
525.9
5.0
9.0
375.5
1,895.1
5,629.1
6.7
0.6
-8.2
68.6
131.5
432.5
8.0
8.6
7.4
33.8
65.5
265.2
3.9
4.3
4.5
44.8
90.5
1,019.9
5)
5.2
5.9
17.4
5)
in % of sales
EBIT in % of sales 1)
EBIT clean
in % of sales
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments 5) Including goodwill impairment of € 475.2 mn
Equity and Debt Markets Relations Fact Book FY 2008 72 / © Continental AG
2008
* Since December 1, 2007 including Siemens VDO
Interior Sales Structure by Region Sales in 2008: € 5.9 bn
Asia 10%
Others 6% Germany 38%
NAFTA 21%
Rest of Europe 25% Equity and Debt Markets Relations Fact Book FY 2008 73 / © Continental AG
Interior Market Position for Body & Security 2008 North America
Europe
Kostal 6%
Lear 6%
Bosch 5%
Visteon 4% Bosch 4%
Others 31%
Valeo 7%
Schrader 6%
Continental 27%
Delphi 8%
Others 41%
Lear 9%
Hella 10%
Denso 10%
World
Asia
Others 46%
Others 50% Tokai Rika 6%
Valeo 4%
Bosch 5% Hella 5%
Lear 5%
Delphi 7%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 74 / © Continental AG
Continental 15%
Delphi 11%
Denso 11%
Continental 17%
Sumitomo 6% Calsonic Kansei 9%
Denso 21%
Continental 8%
Interior Market Position for Instrumentation and Displays 2008 North America
Europe Bosch 7%
Visteon 5%
Yazaki 4%
Nippon Seiki 4%
Magneti Marelli 12% Continental 38%
Johnson Controls 14%
Delphi 11%
Others 16%
Yazaki 6%
Nippon Seiki 12% Continental 20%
Visteon 11%
Denso 16%
World Johnson Controls 8%
Source: Continental
Continental 25%
Denso 16%
Equity and Debt Markets Relations Fact Book FY 2008 75 / © Continental AG
Calsonic Kansei 7%
Others 26%
Visteon 5% Nippon Seiki 7%
Asia
Magneti Marelli 7%
Yazaki 6%
Others 24%
Continental 14%
Nippon Seiki 10%
Yazaki 10%
Others 24%
Denso 35%
Interior Market Position for Radio 2008 Europe Panasonic 7%
Delphi 9%
Alpine 11%
North America Clarion Melco 2% 2%
Clarion 9%
Others 12%
Visteon 9%
Pioneer 6%
Fujitsu-Ten 5%
Others 11%
Alpine 12%
Visteon 11%
Blaupunkt 28%
Continental 18%
Continental 13%
World Visteon 7%
Fujitsu-Ten 5%
Continental 1% Hyundai Autonet 5%
Others 27%
Panasonic 13%
Others 35%
Pioneer 6% Alpine 7%
Alpine 9%
Continental 10%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 76 / © Continental AG
Panasonic 15%
Asia
Blaupunkt 9%
Clarion 9%
Delphi 20%
Delphi 11%
Mobis Fujitsu-Ten 7% 7%
Panasonic 18% Clarion 14%
Interior Market Position for Multimedia Systems* 2008 North America
Europe Blaupunkt 7%
Melco 7%
Continental 24%
Magneti Marelli 4% Denso Aisin 4% 3% Alpine 3% Others 6% Becker 42%
Delphi 8%
Continental 12%
Xanavi 7%
Pioneer 5% Aisin 2% Others 7%
Becker 16% Denso 24%
Alpine 19%
World
Asia
Xanavi Blaupunkt 3% 5% Alpine Panasonic 6%
Others 25%
Xanavi 7%
Clarion 6%
Melco 5%
Pioneer 8%
8%
Alpine Fujitsu-Ten 4% 4% Others 13%
Becker 19% Aisin 10% Continental 10% Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 77 / © Continental AG
Denso 19%
Panasonic 16% Denso 14%
Aisin 18% * Navigation stand-alone system and navigation systems with enriched multimedia functions
Interior Market Position for Embedded Telematics 2008 Europe Magneti Marelli 15%
North America Autoliv 10%
Denso 3%
Delphi 2%
Continental 68%
Bury 2%
World
Continental 62%
LG 30%
Peiker 6%
Continental 61%
LG 24%
Novero 6%
Japan
Magneti Marelli 2% Hitachi Delphi 2% 2% InterNavi 2%
Denso 33%
Others 3% Hitachi 33%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 78 / © Continental AG
InterNavi 34%
Interior Market Position for Device Connectivity Units 2008 Europe
North America
Magneti Marelli 13% Novero* 25%
Continental 22%
Becker 28%
World Magneti Marelli Delphi 8% 4%
Johnson Peiker Controls 2% 3%
Becker 18% Novero* 16%
Continental 42%
Peiker 7%
Delphi 7% Paragon 3% Peiker 2%
Flextronic 5% Johnson Controls 5%
Continental 83%
China Honda Accessories 15%
Flextronic 2% Honda Accessories 1% Others 4%
Others 24%
Denso 8% Novero* 4%
Continental 47%
Visteon 2% Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 79 / © Continental AG
* Former Nokia
Interior Market Position for Commercial Vehicle* 2008 North America
Europe Wabco 12%
Actia 8%
Thales 3%
Others 21%
Visteon 11%
Ametek 5%
Others 26%
Qualcomm 15%
Continental 36%
World Stoneridge 20%
Qualcomm 2% Yazaki 3%
Visteon 2%
Bosch 1% Others 31%
Delco 4%
South America Stoneridge 7%
Visteon 8%
Bosch 12%
Continental 60%
Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 80 / © Continental AG
Continental 29%
Pricol 4% Actia 5%
Magneti Marelli 4% Others 9%
Continental 26%
Stoneridge 17%
Asia / Pacific Wabco 6%
Stoneridge 13%
Actia 2% Continental 9%
Delco 14%
Pricol 15%
Yazaki 12%
Others 48%
* Commercial vehicles business as described in BU structure excluding aftermarket business
Interior Manufacturing Sites: Germany & Rest of Europe Germany
Rest of Europe
Babenhausen
Displays, instrument clusters
Birmingham, UK
HVAC control units, after market products
Ingolstadt
Keyless entry systems, comfort control units, heading control
Brandys, Czech Rep.
Radio, multimedia, navigation, HVAC control units, instrument clusters
Karben
Cluster PCB, HVAC control units, gateways
Nuernberg
Seat control devices, transmission control units
Budapest, Hungary
Door control devices
Regensburg
Displays, multimedia products, body/ door control units, passive start & entry systems, remote keyless entry, immobilizer
Frenstat, Czech Rep.
Body/ door control units, keyless entry systems
Hambach, France
Cockpit modules
Neuhausen, Switzerl.
After market products, data and communication systems for public transportation
Rambouillet, France
Radio, navigation
Rubi, Spain
Instrument clusters
Ruethi, Switzerland
After market products, gauges, marina & other instruments
Sibiu, Romania
Door control devices, body control devices
Timisoara, Romania
Instrument clusters, displays
Toulouse, France
Tire guard, body control unit, keyless entry system, connectivity box
Chistopol, Russia
Instrument clusters for passenger cars and commercial vehicles
Villingen
Commercial vehicles control units, maut, commercial vehicles instrument clusters, tachographs
Wetzlar
Multimedia products
Equity and Debt Markets Relations Fact Book FY 2008 81 / © Continental AG
Interior Manufacturing Sites: America & Asia America
Asia
Ayala Morelos, Mexico
Body control units
Adelaide, Australia
Cockpit modules
Barueri, Brazil
Instruments, fuel level sensors, gauges for after market and commercial vehicles
Bangalore, India
Instruments, instrument clusters
Bundoora, Australia
Instrument clusters, HVAC control units
Cedar Rapids, USA
Data and communication systems for public transportation Calamba, Philippines
Body electronics
Gravatai, Brazil
Cockpit modules Changchun, China
Guadalajara, Mexico
Radio, body controller modules, integrated power module, gateway, tire guard, commercial vehicles control units and instrument clusters
Keyless entry system, immobilizer, window lifter control units
Cheongwon, S. Korea
Instrument clusters, HVAC control units, parking aid, PWM (fan) control units
Instrument clusters, tachographs, body controller, HVAC control units
Icheon, S. Korea
Body controller, keyless entry systems
Manila, Philippines
Door control devices, anti theft protection control devices, central control units, body control devices
Penang, Malaysia
Instrument clusters, body controller, gateways, immobilizer for passenger cars and commercial vehicles
Guarulhos, Brazil Huntsville, USA
Radio, navigation, multimedia, body controller module, integrated power module, gateways, instrument clusters
Manaus, Brazil
Radio
Nogales, Mexico
Interior electronics and telematic products
Resende, Brazil
Bus and cabin assembly for commercial vehicles
Shanghai, China
Door control devices
Seguin, USA
Telematics, marine and agricultural products
Tianjin, China
Telematics, embedded hands-free bluetooth systems
Wuhu, China
Instrument clusters
Continental Automotive Infotainment, HVAC, automotive spare parts Instruments Malaysia Prai, Penang
Equity and Debt Markets Relations Fact Book FY 2008 82 / © Continental AG
Interior Selected Cooperations & Joint Ventures Europe
Asia
SAS Autosystemtechnik GmbH & Co. KG Karlsruhe, Germany
Cockpit module assembly and logistics
Siemens-Yazaki Systems Technologies Europe GmbH, Regensburg, Germany
Electric and electronic cabling & distribution systems (EEDS)
Optrex Europe GmbH Babenhausen, Germany
Liquid crystal displays and modules
vogtronics GmbH Obernzell, Germany
Inductive products (antennas, immobilizers)
TecCom GmbH Ismaning, Germany
B2B platform for automotive aftermarket
TecDoc Informations System GmbH Köln, Germany
B2B platform for automotive aftermarket regarding product specs data
Kienzle Rheinapp. Rhein. Apparate GmbH Mülheim, Germany
Automotive aftermarket sales and service (electronics, navigation systems, telematics)
Kienzle Argo GmbH Berlin, Germany
Automotive aftermarket sales and service (tachographs, telematics)
SupplyOn AG Hallbergmoos, Germany
B2B platform provider for automotive supply chain management
OOO Continental Automotive RUS Moscow, Russia
Instrument cluster (passenger cars) tachographs, speedometer driver workplaces
Equity and Debt Markets Relations Fact Book FY 2008 83 / © Continental AG
Car Electronic Architecture Network System Company Ltd. Anyang, Korea
Electronic system architecture (body controller, SW development)
Hyundai Autonet Co. Ltd. Kyoungki-do, Korea
Car electronic applications (multimedia, body electronics, powertrain electronics)
Automotive Infotronics Private Ltd. Chennai, India
Engineering and development of electric and electronic components and software
PT Indo VDO Instruments Co. Ltd. Bekase, Indonesia
Instrument clusters for the domestic market
Huizhou, China
Radio, navigation
VI. Rubber Group
Equity and Debt Markets Relations Fact Book FY 2008 84 / © Continental AG
Rubber Group Financials (€ million) Rubber Group: Sales by division
EBIT and adjusted EBIT margin w/o PPA* by division
3,007.0
9,353.9
- 0.4%
5,100.3 Organic Sales growth
-
330.6
- 157.6
1,404.2 1.6%
1,015.4
647.8
37.1
11.1%
- 0.1
11.2%
cons.
total
2.8%
1.1%
13.2%
PLT
*
CVT
CT
cons.
total
Amortization of intangibles from PPA
** EBIT w/o PPA before consolidation (€ -11.7 mn) and special effects (€ -12.2 mn)
Equity and Debt Markets Relations Fact Book FY 2008 85 / © Continental AG
PLT
CVT
CT
**
Rubber Group Key Figures (€ million) Sales EBITDA in % of sales
EBIT in % of sales
EBIT adjusted in % of sales
2007
2008
8,899.2 1,504.4
9,337.0 1,638.4
9,353.9 1,415.9
16.9
17.5
15.1
1,105.7
1,225.6
984.9
12.4
13.1
10.5
1,240.5
1,015.4
13.4
11.2
4,008.8
4,149.1
4,369.5
27.6
29.5
22.5
200.3
210.9
222.0
2.3
2.3
2.4
441.4
404.8
499.1
5.0
4.3
5.3
398.7
412.8
431.0
4.5
4.4
4.6
1)
1)
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
2006
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2008 86 / © Continental AG
Rubber Group Sales Structure by Region Sales in 2008: € 9.4 bn
Asia 6%
Others 4%
NAFTA 16%
Rest of Europe 46% Equity and Debt Markets Relations Fact Book FY 2008 87 / © Continental AG
Germany 28%
VI.1. Passenger and Light Truck Tires
Equity and Debt Markets Relations Fact Book FY 2008 88 / © Continental AG
Passenger and Light Truck Tires Business Structure Passenger and Light Truck Tires Original Equipment ● Tires for compact, medium-size and fullsize cars ● Tires for 4x4 and SUVs ● Tires for vans, light trucks and RVs ● Extended mobility Systems: - SSR - CSR - ContiComfortKit - ContiMobiltyKit - ContiSeal ● NVH engineering services
Global brand: - Continental Regional brand: - General Tire
Replacement Europe ● High-performance and ultra-high-performance tires ● Tires for compact, medium-size and full-size cars ● Tires for 4x4 and SUVs ● Tires for vans, light trucks and RVs
Replacement “The Americas” ● High-performance and ultra-high-performance tires ● Tires for compact, medium-size and full-size cars ● Tires for 4x4 and SUVs ● Tires for vans, light trucks and RVs
Replacement Asia ● High-performance and ultra-high-performance tires ● Tires for compact, medium-size and full-size cars ● Tires for 4x4 and SUVs ● Tires for vans, light trucks and RVs
Global brands: - Continental - Barum
Global brands: - Continental - Barum
Global brands: - Continental - Barum
Regional brands: - Uniroyal * - Semperit - General Tire - Gislaved - Viking - Mabor - Matador
Regional brands: - General Tire - Euzkadi - Semperit - Viking - Gislaved
Regional brands: - Dunlop** - Sime Tyres
Two-Wheel Tires ● Bicycle tires ● High-performance racing tires ● Motorcycle and scooter tires ● High-performance motorbike tires
Global brand: - Continental
* Except NAFTA region, Colombia and Peru ** Trademark rights for Malaysia, Singapore and Brunei
Equity and Debt Markets Relations Fact Book FY 2008 89 / © Continental AG
Passenger and Light Truck Tires Financials 2.5%
(€ million) Sales
4,693.6
4,975.6
969.6
5,100.3
-9.9%
873.5
EBITDA
871.0
EBITDA margin
18.6%
19.5%
FY 06
FY 07
FY 08
764.9 ** 15.4%
647.8*** 13.2%
EBIT adjusted* EBIT margin adjusted*
* EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation ** EBIT w/o PPA & consolidation (€ 0.0 mn) and special effects (€ -24.2 mn) *** EBIT w/o PPA & consolidation (€ -6.7 mn) and special effects (€ -11.7 mn) Equity and Debt Markets Relations Fact Book FY 2008 90 / © Continental AG
17.1%
Passenger and Light Truck Tires Key Figures (€ million) Sales EBITDA in % of sales
EBIT in % of sales
EBIT adjusted in % of sales
2007
2008
4,693.6 871.0
4,975.6 969.6
5,100.3 873.5
18.6
19.5
17.1
650.9
738.7
626.4
13.9
14.8
12.3
764.9
647.8
15.4
13.2
2,248.2
2,324.6
2,488.1
29.0
31.8
25.2
105.2
110.5
119.5
2.2
2.2
2.3
244.5
222.0
292.7
5.2
4.5
5.7
220.1
230.9
247.1
4.7
4.6
4.8
1)
1)
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
2006
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2008 91 / © Continental AG
Passenger and Light Truck Tires Sales Structure by Region Sales in 2008: € 5.1 bn
Asia 4%
Others 3%
Germany 21%
NAFTA 18%
Rest of Europe 54% Equity and Debt Markets Relations Fact Book FY 2008 92 / © Continental AG
Passenger and Light Truck Tires Market Share for Passenger and Light Truck Tires* 2008 Europe Michelin 21%
Continental 22%
Others 20%
Pirelli 8%
Bridgestone/Firestone 11%
Goodyear/Sumitomo 18%
North America Michelin 19% Others 25%
Cooper 9% Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 93 / © Continental AG
Goodyear/Sumitomo 22%
Bridgestone/Firestone 18%
Continental 7%
* OE & Replacement
Passenger and Light Truck Tires Continental Worldwide Passenger and Light Truck Tire Production 2008 (million units)
7.9 Mount Vernon 4.2 San Luis Potosí
4.1* 3.6
Alor Star / Petaling Jaya
Camaçari 2.9 Port Elizabeth
* Until 2004 consolidated in CVT Division Equity and Debt Markets Relations Fact Book FY 2008 94 / © Continental AG
Passenger and Light Truck Tires Continental European Passenger and Light Truck Tire Production 2008 (million units)
9.9
20.0
8.3 7.0 9.6
Korbach Aachen
Clairoix Sarreguemines 14.8
5.6 Otrokovice Puchov
12.2
Timişoara Lousado
Equity and Debt Markets Relations Fact Book FY 2008 95 / © Continental AG
Passenger and Light Truck Tires Cost of Labor at Continental Manufacturing Sites* 120%
100%
D F
80% USA 60%
P MEX
40%
CZ SK
20%
ZA BR
RO MY
0% * Based on average FX rates 2008 Equity and Debt Markets Relations Fact Book FY 2008 96 / © Continental AG
Passenger and Light Truck Tires Unit Sales 2004 - 2008 (in million units)
120 100 80
75.5
80.2
82.7
84.2
87.8 Europe (incl. ROW)*
60 40
The Americas (incl. van tires)**
26.7
25.9
2004
2005
24.0
24.3
23.0
20 0
* From 2005 onwards incl. Sime Equity and Debt Markets Relations Fact Book FY 2008 97 / © Continental AG
2006
2007
2008 ** North America; since 2007 incl. Latin America
Passenger and Light Truck Tires Product Mix Improvement Europe Winter Tires*: No 1 Position
High Performance Summer Tires*
(in million units)
(in million units)
7.6%
3.5%
2.3%
-4.9%
13.1%
9.6%
31.0 15.7
2004
17.2
2005
18.5
2006
* OE & Replacement (excl. All-Season Tires) Equity and Debt Markets Relations Fact Book FY 2008 98 / © Continental AG
6.2%
5.6%
17.6
18.0
27.4
2007
2008
2004
** From 2005 onwards incl. Sime, Malaysia
2005**
32.1
2006
33.9
2007
36.0
2008
Passenger and Light Truck Tires Selected Cooperations & Joint Ventures Europe Matador Omskshina a.s.z.t, Omsk, Russia
Asia Joint Venture with Sibur; production, sales and marketing of passenger and light truck tires
America Compania Ecuatoriana del Caucho S.A., Cuenca, Ecuador
Minority shareholding and technology transfer; production, sales and marketing of passenger, light truck and commercial vehicle tires
HighwayTwo, IL, USA
Joint Venture with Selle Royal S.p.a., Italy; distribution of bicycle products
Equity and Debt Markets Relations Fact Book FY 2008 99 / © Continental AG
General Tyre & Rubber Company of Pakistan Ltd., Karachi, Pakistan
Minority shareholding and technology transfer
J.K. Industries Ltd., New Delhi, India
Technology transfer
Barez Industrial Group Teheran, Iran
Technology transfer
The Yokohama Rubber Co., Ltd., Tokyo, Japan
Distribution of Continental passenger car tires in Japanese replacement market
Yokohama Continental Tire Co. Ltd., Tokyo, Japan
Acquisition of OEM tire business for Japanese car manufacturers and their transplants and Korean car manufacturers on behalf of Yokohama and Continental
VI.2. Commercial Vehicle Tires
Equity and Debt Markets Relations Fact Book FY 2008 100 / © Continental AG
Commercial Vehicle Tires Business Structure Commercial Vehicle Tires Truck Tires Europe
● ● ● ● ● ●
Long-distance Regional traffic Winter Urban traffic Construction Off-the-road
Truck Tires “The Americas”
● ● ● ● ● ●
Long-distance Regional traffic Winter Urban traffic Construction Off-the-road
Truck Tires Replacement Asia
● ● ● ● ●
Long distance Regional traffic Urban traffic Construction Off-the-road
Industrial Tires
● Transportation ● Stack / lift ● Multi purpose
OTR Tires
● ● ● ● ●
Earthmoving Construction Mining Forestry Container Handling
Global brands: - Continental - ContiTread - ContiRE
Global brands: - Continental - ContiTread
Global brand: - Continental
Global brand: - Continental
Global brand: - Simex
Regional brands: - Uniroyal - Semperit - Barum - Matador
Regional brands: - General Tire - Ameri-Steel - Euzkadi
Regional brands: - SIME Tyres - TERCO
Regional brands: - Simex - Barum
Regional brands: - Simex - General Tire
Equity and Debt Markets Relations Fact Book FY 2008 101 / © Continental AG
Commercial Vehicle Tires Financials (€ million)
-3.3%
Sales
1,468.3
1,452.4
EBITDA
203.7
202.4
1,404.2
-44.5%
112.4
EBITDA margin
13.9%
13.9% 8.0%
FY 06
FY 07
FY 08
EBIT adjusted*
114.2**
37.1***
EBIT margin adjusted*
8.2%
2.8%
*
EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation
**
EBIT w/o PPA & consolidation (€ -2.9 mn) and special effects (€ +13.9 mn)
***
EBIT w/o PPA & consolidation (€ -5.9 mn) and special effects (€ -0.9 mn)
Equity and Debt Markets Relations Fact Book FY 2008 102 / © Continental AG
Commercial Vehicle Tires Key Figures (€ million) Sales EBITDA in % of sales
EBIT in % of sales
EBIT adjusted in % of sales
2007
2008
1,468.3 203.7
1,452.4 202.4
1,404.2 112.4
13.9
13.9
8.0
136.2
124.1
29.5
9.3
8.5
2.1
114.2
37.1
8.2
2.8
710.8
697.8
776.2
19.2
17.8
3.8
42.7
43.6
43.4
2.9
3.0
3.1
91.3
83.0
95.6
6.2
5.7
6.8
67.5
78.3
82.9
4.6
5.4
5.9
1)
1)
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
2006
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2008 103 / © Continental AG
Commercial Vehicle Tires Sales Structure by Region Sales in 2008: € 1.4 bn
Asia 6%
Others 6%
Germany 21%
NAFTA 26%
Rest of Europe 41% Equity and Debt Markets Relations Fact Book FY 2008 104 / © Continental AG
Commercial Vehicle Tires Market Share for Truck Tires* 2008 Europe Continental 20%
Michelin 36%
Others 2% Pirelli 4%
Bridgestone/Firestone 16%
Goodyear/Sumitomo 22%
North America Goodyear 31%
Continental 9%
Michelin 20% Others 12% Source: Continental Equity and Debt Markets Relations Fact Book FY 2008 105 / © Continental AG
Yokohama 3%
Bridgestone/Firestone 25%
* OE & Replacement
Commercial Vehicle Tires Continental Product Segments 2008 Europe Regional Traffic 70%
Winter 3% Construction 10%
Urban Traffic 3%
Off-Road 2%
Americas Long Distance 12%
Long Distance 45%
Off-Road 6%
Urban Traffic 5%
Construction 3%
Regional Traffic 38%
Equity and Debt Markets Relations Fact Book FY 2008 106 / © Continental AG
Winter 3%
Commercial Vehicle Tires Continental Worldwide Radial Truck Tire Production 2008 (million units)
2.3
2.1
1.2 Hanover
0.5
Otrokovice Puchov* Mount Vernon* 0.1 0.3
Petaling Jaya
Camaçari 0.1 Port Elizabeth
* Incl. shipments to JV partners Equity and Debt Markets Relations Fact Book FY 2008 107 / © Continental AG
Commercial Vehicle Tires Cost of Labor at Continental Manufacturing Sites* 120% 100%
D
80%
60% 40% 20% 0% * Based on average FX rates 2008 Equity and Debt Markets Relations Fact Book FY 2008 108 / © Continental AG
USA
CZ
SK ZA
BR
MY
Commercial Vehicle Tires Unit Sales 2004 – 2008* (in million units)
6.0 5.0 4.0
3.5
3.7
4.0
4.3
3.9 Europe (incl. ROW)**
3.0
The Americas***
2.9
2.9
3.0
2.9
2.8
2004
2005
2006
2007
2008
2.0 1.0 0.0
* Incl. JV Equity and Debt Markets Relations Fact Book FY 2008 109 / © Continental AG
** From 2005 onwards incl. Sime, Malaysia
** North America; since 2007 incl. Latin America
Commercial Vehicle Tires Selected Cooperations & Joint Ventures Europe
Asia
Mitas a.s., Prague, Czech Republic
Off-take production of industrial tires
Nizhnekamsk All Steel Tire Plant (NASTP) Russia
Technology transfer (CVT)
America Compania Ecuatoriana del Caucho S.A., Cuenca, Ecuador
Minority shareholding and technology transfer; production, sales and marketing of passenger and commercial vehicle tires
GTY Tire Company (partnership), Mount Vernon, IL, USA
Joint venture with Toyo and Yokohama for the production of commercial vehicle tires
Equity and Debt Markets Relations Fact Book FY 2008 110 / © Continental AG
General Tyre & Rubber Company of Pakistan Ltd., Karachi, Pakistan
Minority shareholding and technology transfer
J.K. Industries Ltd., New Delhi, India
Technology transfer
Barez Industrial Group Teheran, Iran
Technology transfer
Watts, Sri Lanka
Off-take production of industrial tires
VI.3. ContiTech
Equity and Debt Markets Relations Fact Book FY 2008 111 / © Continental AG
ContiTech Business Structure ContiTech BeneckeKaliko Group
● ● ● ● ●
Compact sheeting Coated film TEPEO® film Slush skins Cut-to-size foam
Conveyor Belt Group
112 / © Continental AG
Fluid Technology
● Hoses, hose lines Compressible printing and quick blankets for offset connectors for cars, printing trucks and buses Coated fabrics in: Flat and shaped -power steering diaphragms for fuel -air-conditioning management and -heating and cooling industrial applications circuits Diaphragm materials -fuel systems and diaphragms for turbocharger gas, water and airsystems conditioning systems -oil and hydraulic Composite materials for textile buildings systems ● Collapsible tanks for transport and storage ● Hoses and hose ● Concertina walls as lines for indus-trial connecting element in applications buses and trains ● Tubing, couplings ● Gas holder diaphragms and plug-in systems ● Floating hoses ● Dredge hoses ● Oil & Marine hoses
● Steel cable ● belts ● Fabric● reinforced conveyor belts ● for min-ing and other industries ● Lifting belts ● Skid carrying ● belts ● Conveyor belt service material ●
Equity and Debt Markets Relations Fact Book FY 2008
Elastomer Coatings
Air Spring Systems ● Air springs and air spring systems for -commercial vehicles -buses -trailers -rolling stock ● Air spring damper modules for trucks and buses ● Sleeve air springs for drivers’ seats and cab suspension ● Air springs and air actuators for industrial applications ● Compensators
● ● ● ● ● ●
Power Transmission
Vibration
Group
Control
V-belts V-ribbed belts Timing belts Belt Drive Kit-Sets Flat belts PU timing belts as components in complex belt drive systems in automotive and industrial applications
● Conventional and hydraulic rubbermetal elements for the auto industry: -spring strut bearings -engine mounts -transmission suspension -hydromounts -cab mounts ● Active and passive absorbers ● Sealing systems for axle, brake and steering ● SCHWINGMETALL® products for mounting machines and marine engines ● Friction rings and wheels
ContiTech Financials (€ million)
Sales
EBITDA
EBITDA margin
2,868.7
429.8
3,063.9
466.4
-1.9%
3,007.0 -7.8%
15.0%
15.2%
FY 06
FY 07
FY 08
361.3** 11.9%
330.6*** 11.1%
EBIT adjusted* EBIT margin adjusted* *
EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation
** ***
EBIT w/o PPA & consolidation (€ +3.6 mn) and special effects (€ +1.8 mn) EBIT w/o PPA & consolidation (€ +0.9 mn) and special effects (€ +0.4 mn)
Equity and Debt Markets Relations Fact Book FY 2008 113 / © Continental AG
430.1
14.3%
ContiTech Key Figures (€ million) Sales EBITDA in % of sales
EBIT in % of sales
EBIT adjusted in % of sales
2007
2008
2,868.7 429.8
3,063.9 466.4
3,007.0 430.1
15.0
15.2
14.3
318.6
362.8
329.1
11.1
11.8
10.9
361.3
330.6
11.9
11.1
1,049.8
1,126.6
1,105.2
30.3
32.2
29.8
52.4
56.8
59.1
1.8
1.9
2.0
105.7
99.8
110.8
3.7
3.3
3.7
111.2
103.6
101.0
3.9
3.4
3.4
1)
1)
Operating Assets (avg.) ROCE (avg.) in %
2)
R&D expense in % of sales
Capex
2006
3)
in % of sales 4)
Depreciation in % of sales
2)
1) EBIT w/o amortization of intangibles from PPA before consolidation and special effects; Sales before changes in the scope of consolidation 2) New definition of operating assets 3) Capex including software 4) Excluding write-downs of investments
Equity and Debt Markets Relations Fact Book FY 2008 114 / © Continental AG
ContiTech Sales Structure by Region Sales in 2008: € 3.0 bn
NAFTA 6%
Asia 9%
Rest of Europe 37% Equity and Debt Markets Relations Fact Book FY 2008 115 / © Continental AG
Others 5% Germany 43%
ContiTech Market Leader in its Business Units Business Unit
Segments
Fluid Technology
Europe
World
Automotive hoses & hose lines Oil & Marine
No. 1 No. 1
No. 1 No. 1
Benecke-Kaliko Group
Automotive interior trim
No. 1
No. 1
Power Transm. Group
Multiple V-ribbed belts & timing belts
No. 1
No. 3
Conveyor Belt Group
Conveyor belts
No. 1
No. 1
Elastomer Coatings
Printing blankets
No. 2
No. 3
Vibration Control
Chassis sealing system Engine mounts for trucks
No. 2 No. 1
No. 3
Air Spring Systems
Truck & bus air springs Railway systems
No. 1 No. 1
No. 1 No. 1
Equity and Debt Markets Relations Fact Book FY 2008 116 / © Continental AG
ContiTech Sales and Employees 2008 Business Unit
Sales in € millions
Employees
1.106
9.816
Conveyor Belt Group
469
3.027
Power Transmission Group
339
2.371
Benecke-Kaliko Group
296
1.572
Air Spring Systems
242
1.243
Vibration Control
222
1.763
Elastomer Coatings
103
662
3.007*
21.680**
Fluid Technology
ContiTech Equity and Debt Markets Relations Fact Book FY 2008 117 / © Continental AG
*
Incl. other
**
Incl. service functions
ContiTech Manufacturing Sites in Germany & Europe Germany Benecke-Kaliko Eislingen Hanover Löhne Peine Conveyor Belt Group Bad Blankenburg Northeim Elastomer Coatings Northeim Waltershausen Fluid Technology Berlin Hann. Münden Hamburg Karben Korbach Northeim Oppenweiler Salzgitter Wackersdorf Waltershausen
Equity and Debt Markets Relations Fact Book FY 2008 118 / © Continental AG
Europe Air Spring Systems Hamburg Hanover Power Transmission Group Dannenberg Hanover Vibration Control Dannenberg Hamburg Hanover Northeim Shanghai
Fluid Technology Ashington & Grimsby, UK Lyon, France Carei, Romania Nadab, Romania Coslada, Spain Mako, Hungary Motala, Sweden Szeged, Hungary Timişoara, Romania Vác, Hungary Barcelona, Spain
Conveyor Belt Group Szeged, Hungary Vólos, Greece Puchov, Slovakia
Power Transmission Group Timişoara, Romania Wigan, UK
Air Spring Systems Nyiregyhaza, Hungary Bursa, Turkey
Vibration Control Dolné Vestenice & Partizanske, Slovak Republic Elastomer Coatings Moscow, Russia
ContiTech Manufacturing Sites in America & Asia America Fluid Technology Mexico City, Mexico Ponta Grossa, Brazil Houston, TX, USA Somersworth, NH, USA Power Transmission Group Ponta Grossa, Brazil San Luis Potosí, Mexico
Asia Conveyor Belt Group San Luis Potosí, Mexico Santiago de Chile, Chile Ponta Grossa, Brazil Vibration Control Ponta Grossa & Varzea Paulista, Brazil San Luis Potosi, Mexico Air Springs Systems San Luis Potosí, Mexico
Fluid Technology Changchun, China Cheonju, Korea
Air Spring Systems Ninghai, China Seonghwan, Korea
Power Transmission Group Ningbo & Shanghai, China Delhi, India Bursan, Korea
Conveyor Belt Group Calcutta, India Changzhi, China
Vibration Control Ningbo, China Benecke-Kaliko Zhangjiagang, China
Equity and Debt Markets Relations Fact Book FY 2008 119 / © Continental AG
Elastomer Coatings Shanghai, China
ContiTech Selected Cooperations & Joint Ventures Germany
Europe
ContiTech INA GmbH, Herzogenaurach
Development of power transmission systems
BPW, Wiehl
Strategic cooperation for air springs for trailers and axles
Development partnership for Gigabox (suspension systems for rail vehicles)
Asia
America Cooper Standard NVH Auburn, IN, USA
Development and production of engine mounts and chassis mount systems for the global automotive industry
Sansuy Benecke Ltda., São Paulo, Brazil
Sales and marketing of laminates for car interiors
Equity and Debt Markets Relations Fact Book FY 2008 120 / © Continental AG
SKF Stockholm, Sweden
ContiTech Fluid Shanghai Co. Ltd., Shanghai, China
Production of power steering lines for Volkswagen, General Motors and others
Kurashiki Kako Corp., Kurashiki, Japan
Development and production of platform components (aggregate and chassis mounts) for the automotive industry with European/American/Japanese affiliations, e.g. Ford and Mazda
Seonghwan, Korea
JV for production of Air-Springs and Air Spring Systems
VII. Share Information
Equity and Debt Markets Relations Fact Book FY 2008 121 / © Continental AG
Share Information Share Data / ADR Data Share Data ● Type of share ● Bloomberg Ticker ● Reuters Ticker ● German Security Identification Number (WKN) ● ISIN Number ● Shares outstanding as per December 31, 2008
No-par value share CON CONG 543 900 DE0005439004 169,005,983
ADR Data ● Ratio (ordinary share: ADR) ● Bloomberg Ticker ● Reuters Ticker ● ISIN Number ● ADR Level ● Exchange ● Sponsor
Equity and Debt Markets Relations Fact Book FY 2008 122 / © Continental AG
1:1 CTTAY CTTAY.PK US2107712000 Level 1 OTC Deutsche Bank Trust Company Americas
Share Information Issued Capital
500 450 400 350 300 250 200 150 100 50 0
372
433
161.7
169.0
Issued capital (in € million)
375
145.4
145.9
146.5
2004
2005
2006
Equity and Debt Markets Relations Fact Book FY 2008 123 / © Continental AG
373
414
Number of shares (in million)
2007
2008
VIII. Glossary
Equity and Debt Markets Relations Fact Book FY 2008 124 / © Continental AG
Financial Glossary ADR |
American Depositary Receipt
EBIT |
Earnings Before Interest and Taxes
EBITDA |
EBIT Before Depreciation and Amortization
EBIT margin |
EBIT as a percentage of sales
EBITDA margin |
EBITDA as a percentage of sales
Gearing Ratio |
Represents the net indebtedness divided by shareholders’ equity, expressed as a percentage
ISIN |
International Security Identification Number
Net Indebtedness |The net amount of interest-bearing liabilities and cash and cash equivalents as recognized in the balance sheet as well as the market values of the derivative instruments NIAT |
Net Income attributable to the shareholders of the parent
Operating Assets | Operating assets are the assets less liabilities as reported in the balance sheet, without recognizing the net indebtedness, discounted trade bills, deferred tax assets and income tax receivable and payable as well as other financial assets and debt PPA I
Purchase Price Allocation
ROCE |
Return On Capital Employed. We define ROCE as the ratio of EBIT to average of quarterly operating assets
Equity and Debt Markets Relations Fact Book FY 2008 125 / © Continental AG
Product Glossary (1) ABS |
Anti-Lock Brake System
DCT |
Double Clutch Transmission
ACC I
Adaptive Cruise Control
EBS |
Electronic Brake System
ADAS I
Advanced Driver Assistant System
ESC |
Electronic Stability Control
AMT |
Automated Manual Transmission
HEV |
Hybrid Electric Vehicle
AT |
Automatic Transmission
HMI I
Human Maschine Interface
C&S I
Division Chassis & Safety
HVAC |
Heating, Ventilation and Air Conditioning
CSR |
Conti Support Ring
II
Division Interior
CT I
Division ContiTech
MAB/MIB I
Motorcycle Anti-lock Braking System / Motorcycle Integrated Brake System
CV |
Commercial Vehicle MAF I
Mass Airflow Sensor
MT |
Manual Transmission
CVT I
Division Commercial Vehicle Tires
CVaT |
Continuous Variable Transmission
ECU |
Electronic Control Unit
Equity and Debt Markets Relations Fact Book FY 2008 126 / © Continental AG
Product Glossary (2) NVH |
Noise Vibration Harshness
OTR I
Off The Road Tires
PCB I
Printed Curcuit Board
PLT I
Division Passenger & Light Truck Tires
PT I
Division Powertrain
PWM I
Pulse Width Modulation
RV |
Recreational Vehicle
SSR |
Self Supporting Runflat Tires
SUV |
Sport Utility Vehicle
TCS |
Traction Control System
TPMS I
Tire Pressure Monitoring System
Equity and Debt Markets Relations Fact Book FY 2008 127 / © Continental AG
Contact
Equity and Debt Markets Relations Vahrenwalder Str.9 30165 Hannover Germany Telephone: +49 511 938 1163 Fax: +49 511 938 1080 e-mail:
[email protected] www.continental-ir.com
Equity and Debt Markets Relations Fact Book FY 2008 128 / © Continental AG
Rolf Woller Telephone: +49 511 938 1068 e-mail:
[email protected] Gabriele Collatz Telephone: +49 511 938 1915 e-mail:
[email protected]
Disclaimer
This document has been prepared by Continental Aktiengesellschaft. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Thus, neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this document or its contents or otherwise arising in connection with this document. This document includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our belief and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
Equity and Debt Markets Relations Fact Book FY 2008 129 / © Continental AG
