19-11-12 Presentation 9M final - Continental USA · 0 5hvxowv 7lfnhu &21 $'5 7lfnhu &77$< 7zlwwhu...
Transcript of 19-11-12 Presentation 9M final - Continental USA · 0 5hvxowv 7lfnhu &21 $'5 7lfnhu &77$< 7zlwwhu...
9M 2019 Results
Ticker: CONADR-Ticker: CTTAYTwitter: @Continental_IRhttp://www.continental-ir.com
Hanover – November 12, 2019
Wolfgang Schaefer – CFO
Agenda
Indebtedness and Cash Flow5 13
Corporation Highlights2 6
Automotive Group3 9
Rubber Group4 11
2019 Outlook6 16
Back-up and 2017 – 9M 2019 Fact Sheets 267
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations 2
Current Market Situation1 3
39M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1) Current Market SituationNumerous Challenges Facing Continental Today
› Efficiency and productivity increase through
adjustments in organization and portfolio
› Greater focus on key growth areas of the future
› 100% spin-off of the Powertrain division
Continental Strategy 2030Influencing Factors
› Planning assumes no material recovery in 2020-2024
› At best, LV production in 2020 at same level as in 2019,
if not decline for 3rd consecutive year
› Tires market headwinds increasing
Overall Economic Situation
Technological Changes
› Disruptive technologies present opportunities for Continental, but also for new competitors
Regulatory Changes
› Legislated changes directly impacting viability of certain business areas
Competitiveness › Need to improve cost position of certain products and locations
Digital Transformation
› Role of digitalization and Industry 4.0 in Continental’s transformation and competitiveness
49M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
PortfolioPerformance and Cost Management
Labor force adaption; variable headcount down 5% YoY1
Reductions in capex
Optimization of working capital
› Further measures in preparation
1) Current Market SituationKey Details of Structural Program
Footprint
Closures in Tires, ContiTech and Chassis & Safety currently being implemented
Stakeholder consultation underway in Powertrain and Interior
› Further adjustments to production, R&D and administrative footprints in preparation
Sale of 50% stake in SAS joint venture from Interior
› Possible sale of businesses and (sub)segments
one-time costs, mostly incurred by end of 2022
~€1.1 billionReduction in gross costs
annually from 2023
~€500 million
1 Excluding acquisitions
59M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1) Current Market SituationMaking Progress in Long-Term Growth Areas
Tires DivisionGrand opening of new plants in Thailand and U.S.A.› Both plants commencing initial production› Ramp up over the next 4 years› New plants are part of Continental’s Tire
Division’s ‘Vision 2025’ growth strategy to have a more balanced global footprint
Clinton
Rayong
Interior Division InCar Application Server (ICAS1) for Volkswagen’s ID electric vehicles› New server concept as central element for a
service-oriented electronics architecture› Builds upon Continental’s and Elektrobit’s
leadership in vehicle electronics and software
Vitesco Technologies Start of volume production of EMR3› Integrated high-voltage axle drive› Best-in-class power density, size and
weight› Drivetrain for BEVs Peugeot’s e-208 and
Opel’s Corsa-e, as well as Hyundai’s Encino and Lafesta for the Chinese market
2) Corporation HighlightsMost Important KPIs for 9M 2019
1 Before amortization of intangibles from PPA, consolidation and special effects2 Amortization of intangibles from PPA3 Attributable to the shareholders of the parent4 In 2018 excluding net effect of US pension funding, in 2019 excluding carve-out effects5 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM6 Depreciation and amortization
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations 6
9M/2018 9M/2019 Delta Comments
Sales €33.2 bn €33.4 bn 0.7% Organic growth -2.1%; FX +€504 mn
Adj. EBIT1
Adj. EBIT1 marginPPA2
Special effects
€3.0 bn9.0%
-€128 mn€125 mn
€2.4 bn 7.2%
-€134 mn-€2,621 mn
-20.8%-180 bps
Non-cash impairment effect -€2,522 mn
NIAT3 €2.2 bn -€0.9 bn
Free cash flow before acquisitions4 €370 mn -€266 mn IFRS 16 impact on D&A6 +€256 mn
Gearing ratioEquity ratio
17%45%
34%37%
IFRS 16 impact +1,090 bps
Trailing ROCE5 18.3% 2.5% -1580 bps IFRS 16 impact -100 bps
› Order intake in the Automotive Group of about €22 bn lifetime sales (book-to-bill ratio of 1.1)
› Successful placements of two bonds (€1,100 mn total) at nearly zero rates in September› Additional private placements (€300 mn total) at attractive rates in October› Completion of purchase of thermoplastic specialist Merlett Group on November 4, 2019
11,000 11,03310,693
11,284 11,01311,374
10,78811,230 11,047 11,264 11,103
1,066 1,155
769884 868
615
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19
Sales (€ mn) Adj. EBIT (€ mn)
2) Corporation Highlights Sales and Adjusted EBIT1 by Quarter
7
FY Sales €44,009 mn FY Sales €44,404 mn 9M Sales €33,414 mnAdj. EBIT1 €2,367 mn
1
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects
-12%
-2%
0%
1%
0%
-1%
1.7%
-3%
-2%
-2%
-3%
0%
2) Corporation Highlights Growth Profile of the Corporation Q3 2019
8
Mark
et
1 According to IMF definition (WEO Update October 2019)
1
Co
nti
Mark
etC
on
ti
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Automotive Group organic sales growth
PC & LT prod. growth global
PC & LT prod. Europe, North America, China
Passenger & Light Truck tires volume growth
Replacement tirevolume growth Europe
Replacement tire volumegrowth North America
ContiTechorganic sales growth
PC & LT prod. growth global
GDP growthadvanced economies 2019
Commercial Vehicle tires volume growth
Replacement tirevolume growth Europe
Replacement tire volumegrowth North America
6,8
14
6,9
78
6,4
11
6,6
52
6,6
89
6,7
62
6,5
55
557 553254 357 368
102
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19
Q4
/19
Sales (€ mn) Adj. EBIT (€ mn)
3) Automotive GroupKey Performance Indicators in Q3 2019
9
Automotive Group
1 Before amortization of intangibles from PPA, consolidation and special effects
1
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
› Reported EBIT: -€2,425 mn (-37.0% of sales)› R&D (net): €740 mn (11.3% of sales) › Capex: €484 mn (7.4% of sales)
Chassis & SafetySales (€ mn) Org. growth Adj. EBIT1 margin
2,290 -0.3% 6.5% (+150 bps YoY)
PowertrainSales (€ mn) Org. growth Adj. EBIT1 margin
1,926 0.4% -6.5% (-310 bps YoY)
InteriorSales (€ mn) Org. growth Adj. EBIT1 margin
2,409 0.7% 3.3% (-560 bps YoY)
› Ramp up of MK C1 brake business, higher volumes in ADAS
› Negative margin due to warranty topics of €165 mn
› Adj. EBIT1 margin excluding HEV about -3%
› Sales growth from higher volumes in the area of connectivity
› Margin lower due to FX, warranty topics, higher R&D and D&A
6%
8%
2%
-2%
-4%
-5%
0%
0%
5%
-3%
-5%
-6%
-7%
-3%
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19Automotive Group PC & LT prod. growth ww
-8%
-1%-1%
-5%-6%
-4%
0%
0% 1%
3) Automotive Group Organic Sales Growth vs. PC & LT1 Production
10
1 Passenger cars and light trucks <6 metric tons
Growth of organic sales vs. PC & LT1 production Organic sales growth by division in 2019
Chassis & Safety Powertrain Interior
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
4,2
12
4,4
10
4,3
90
4,5
91
4,3
72
4,5
18
4,5
61
544 632 547 535 540 543
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19
Q4
/19
Sales (€ mn) Adj. EBIT (€ mn)
4) Rubber GroupKey Performance Indicators in Q3 2019
111 Before amortization of intangibles from PPA, consolidation and special effects
1
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
ContiTechSales (€ mn) Org. growth Adj. EBIT1 margin
1,598 -2.4% 7.8% (+190 bps YoY)
TiresSales (€ mn) Org. growth Adj. EBIT1 margin
2,990 0.6% 14.5% (-140 bps YoY)
Rubber Group
› Reported EBIT: €487 mn (10.7% of sales)› R&D (net): €119 mn (2.6% of sales) › Capex: €281 mn (6.2% of sales)
› Automotive business with headwinds from lower volumes
› First outcome of margin enhancement programs visible
› Better price/mix responsible for organic growth
› Volume decline impacted margin negatively
› Increased period expenses and ramp-up costs
2,852 2,869 2,990-15 32 49 72
Sales Q3 2018 Volume Price/Mix Sales Q3 2019before Cons.
and FX
FX Cons. Sales Q3 2019
4) Rubber GroupTires Sales Transition Q3 2019
129M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
-0.5% +1.1% +1.7%
+0.6% org. growth
+4.8% rep. growth
(€ mn)
1,661
1,730950
2,185 416 397474
792
1,222
4,374
5,454
Netindebtedness
(FY 2018)
First-timeadoption of
IFRS 16
Dividend 2018 Capex Acquisitions Change ininventories
Change inreceivables
Change inpayables
Other CF Depr. and amortization
Netindebtedness
(9M 2019)
5) Indebtedness and Cash Flow Net Indebtedness Bridge
131 According to cash flow statement including intangible assets
€1,663 mn outflow from change in working capital
1
Gearingratio
9%
34%
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
(€ mn)
2,3
61
-2,1
81
-5
-1,9
91
37
0
1,8
94
-2,5
77
-75
0
-2,1
61
-33
4
Cash flow fromoperating activities
Cash flow usedfor investing activities
Free cash flow
5) Indebtedness and Cash Flow Free Cash Flow Before Acquisitions Excluding Carve-Out Effects in 9M 2019
149M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
-170
-636
-467
Carve-out €68 mn
Carve-out €68 mn
1,8
27
-266
2018 2018 before acquisitions 2019 2019 before acquisitions
Pension funding€185 mn
2,1
76
Pension funding€185 mn
185
(€ mn)
3,5422,798
2,048 1,984
2,858 2,995
1,661
4,3025,666 5,454
27%
19%13% 12%
17% 17%9%
23%
31% 34%
YE YE YE Q1 H1 9M YE Q1 H1 9M
2015 2016 2017 2018 2019
Net indebtedness (€ mn) Gearing ratio
5) Indebtedness and Cash Flow Net Indebtedness and Gearing Ratio
159M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
6.84
6.05 6.
49
8.35
6.70
6.67
6.17 7.
06
5.99
5.46 5.83 6.
68
7%0% 3% 1%
-2%
10%
-5%-15%
-11%-18%
-5% -5%
Q1
/17
Q2
/17
Q3
/17
Q4
/17
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19E
Q4
/19E
China chg YOY
4.53
4.46
3.97
4.11 4.38
4.36
4.03
4.19
4.23
4.25
4.02
3.78
2%-3%
-10%-6%-3%-2%
2% 2%
-3% -3%0%
-10%
Q1
/17
Q2
/17
Q3
/17
Q4
/17
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19E
Q4
/19E
North America chg YOY
5.83
5.70
4.87 5.
65 5.85
5.96
4.58 5.
35 5.58
5.53
4.59 5.
246%
-3%
3% 6%0%
5%
-6%-5%-5% -7%
0% -2%
Q1
/17
Q2
/17
Q3
/17
Q4
/17
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19E
Q4
/19E
Europe chg YOY
6) 2019 OutlookPC & LT1 Production: H2 below H1 in Our Core Markets2
169M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations2 Source: IHS and own estimates, Europe excluding Kazakhstan and Uzbekistan
1 Passenger cars and light trucks <6 metric tons
North America (mn units)Europe (mn units) China (mn units)
2017: 22.1 2018: 21.7 2019E: 20.9 2017: 17.1 2018: 17.0 2019E: 16.3 2017: 27.7 2018: 26.6 2019E: 24.0(-4% yoy) (-4% yoy) (-10% yoy)
6) 2019 OutlookMarket Outlook
179M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1 Passenger cars and light trucks <6 metric tons2 Medium and heavy vehicles >6 metric tons3 Radial and bias
Commercial Vehicle2 Production (k units)
Commercial Vehicle Replacement3 Tire Market (mn units)
PC & LT1 Production (mn units)
PC & LT1 Replacement Tire Market (mn units)
Worldwide production to decrease about 6%
Worldwide production to decrease about 7%
Worldwide replace-ment tire market to increase about 1%
Worldwide replace-ment tire market to decrease about 1%
IHS and own estimates
LMC and own estimates
IHS and own estimates
LMC and own estimates
2018E 2019E Chg.
Europe 21.7 20.9 -4%
North America 17.0 16.3 -4%
South America 3.4 3.3 -3%
Asia 50.8 47.0 -7%
2018E 2019E Chg.
Europe 661 594 -10%
North America 633 633 0%
South America 142 170 +20%
Asia 2,211 1,990 -10%
2018E 2019E Chg.
Europe 366 363 -1%
North America 297 305 +2%
South America 68 67 -1%
Asia 455 467 +3%
2018E 2019E Chg.
Europe 25.5 25.1 -2%
North America 27.1 24.3 -10%
South America 14.8 14.1 -4%
Asia 91.0 93.0 +2%
6) 2019 OutlookContinental Corporation
189M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects2 Before effects of currency translation and effects from changes in the fair value of derivative instruments and other valuation effects3 In 2018 excluding net effect of US pension funding, in 2019 excluding carve-out effects
2018 2019E
Consolidated sales adj. EBIT1 margin
€44.4 bn9.3%
About €44 bn – €45 bnAbout 7.0% – 7.5% adj. EBIT1 margin
Automotive Groupadj. EBIT1
€26.9 bn€1.9 bn
About €26 bn – €26.5 bnAbout 4.2% – 4.8% adj. EBIT1 margin
Rubber Groupadj. EBIT1
€17.6 bn€2.4 bn
About €18 bn – €18.5 bn About 12.0% – 12.5% adj. EBIT1 margin
Raw materials cost impact More than €130 mnfor the Rubber Group
About €50 mn burden for the Rubber Group based on latest assumptions
Special effects €80 mn At least -€2.8 bn including impairments, expenses for restructuring provisions and carve-out effects
Financial resultTax rate
-€178 mn23%
About -€220 mn at constant FX2 including IFRS 16 About 27% including carve-out effects but excluding impairments
Capex before financial investmentsPPA amortization
€3.1 bn€173 mn
Below 8% of sales including IFRS 16About €200 mn
Free cash flow before acquisitions3 €1.9 bn About €1.2 bn to €1.4 bn including IFRS 16
20
Disclaimer
› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on November 12, 2019, and the subsequent road shows and conferences in Europe and North America. 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 or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.
› 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 presentation or its contents or otherwise arising in connection with this presentation.
› This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs 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 as of the date they are made, 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.
› All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or market shares of Continental and any of the participants in any market.
› Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and percentages.
› Note: Due to the application of the modified retrospective approach during first time adoption of IFRS 9, Financial Instruments, and IFRS 15, Revenues from Contracts with Customers, as at January 1, 2018, all the figures from comparative periods are shown unadjusted. Due to the application of the modified retrospective approach during first-time adoption of IFRS 16, Leases, as at January 1, 2019, all the figures from comparative periods are shown unadjusted.
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
21
ContactEquity and Debt Markets Relations
Vahrenwalder Str. 930165 HanoverGermany
e-mail: [email protected]: +49 511 938 1080 www.continental-ir.com
Michael SaemannAnalysts, Institutional Investors and Sustainability Investors
Phone: +49 511 938 1307e-mail: [email protected]
Marvin KalberlahAnalysts, Institutional Investors andSocial Media
Phone: +49 511 938 14034e-mail: [email protected]
Christopher MackeAnalysts and Institutional Investors
Phone: +49 511 938 1062 e-mail: [email protected]
Klaus PaeslerAnalysts, Institutional Investors, ADR and Private Investors
Phone: +49 511 938 1316 e-mail: [email protected]
Sabine ReeseSustainability, ASM, CMD Organization, IR Website, Capital Market Disclosure Requirements
Phone: +49 511 938 1027 e-mail: [email protected]
Bernard WangHead of IR
Phone: +49 511 938 1068e-mail: [email protected]
Sina RamatschiAssistant to the Head of IRRoadshow and Conference Organization
Phone: +49 511 938 1163e-mail: [email protected]
ContinentalFinancial Calendar
229M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
2019
Preliminary figures for fiscal 2018 January 14, 2019
Annual Financial Press Conference March 7, 2019
Annual Shareholders’ Meeting (incl. key data for Q1 2019) April 26, 2019
Q1 Financial Report May 9, 2019
Half-Year Financial Report August 7, 2019
Nine-Month Financial Report November 12, 2019
2020
Annual Financial Press Conference March 5, 2020
Annual Shareholders’ Meeting (incl. key data for Q1 2020) April 30, 2020
Q1 Financial Report May 7, 2020
Half-Year Financial Report August 4, 2020
Nine-Month Financial Report November 10, 2020
ContinentalShare Data/ADR Data
239M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Share Data
Type of share No-par value share
Bloomberg Ticker CON
Reuters Ticker CONG
German Security Identification Number (WKN) 543 900
ISIN DE0005439004
Shares outstanding as at September 30, 2019 200,005,983
ADR Data
Ratio 1:10 (ordinary share : ADRs)1
Bloomberg Ticker CTTAY
Reuters Ticker CTTAY.PK
ISIN US2107712000
ADR Level Level 1
Exchange OTC
Sponsor Deutsche Bank Trust Company Americas
1 The split was 1:5 before October 29, 2018
ContinentalBond Data
249M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Issuer Continental AG
Issue Senior Notes
Principal amount €600 mn €750 mn €200 mn €500 mn €100 mn €600 mn
Offering price 99.410% 99.228% 100.1524% 99.804% 100% 99.802%
Rating at issue date
BBB+ (S&P)BBB+ (Fitch)
Ba1 (Moody’s)BB (S&P)
BBB (Fitch1)
Baa1 (Moody’s)BBB+ (Fitch)
Baa1 (Moody’s)BBB+ (Fitch)
Baa1 (Moody’s)BBB+ (Fitch)
Baa1 (Moody’s)BBB+ (Fitch)
Current rating (corporation)
BBB+ (S&P2), BBB+ (Fitch3), Baa1 (Moody’s4)
Coupon 0.0% p.a. 3.125% p.a.Floating quarterlyEURIBOR +0.50%
0.0% p.a. 0.231% p.a. 0.375% p.a.
Issue date Dec. 5, 2016 Sept. 9, 2013 Oct. 11, 2019 Sept. 12, 2019 Oct. 16, 2019 Sept. 27, 2019
Maturity Feb. 5, 2020 Sept. 9, 2020 Apr. 11, 2021 Sept. 12, 2023 Oct. 16, 2024 June 27, 2025
Interest payment Not applicableAnnualSept. 9
QuarterlyFirst on Jan. 13
Not applicableAnnualOct. 16
AnnualJune 27
WKN A2DARM A1X3B7 A255C0 A2YPE5 A255C1 A2YPAE
ISIN XS1529561182 XS0969344083 XS2063572825 XS2051667181 XS2066366290 XS2056430874
Denomination€1,000 with minimum
tradable amount €1,000
€100,000 with increments of
€100,000 thereafter
€1,000 with minimum tradable amount €1,000
€100,000 with increments of
€100,000 thereafter
€1,000 with minimum tradable amount €1,000
1 Non-contracted rating at issue date2 Contracted rating since May 19, 20003 Contracted rating since November 7, 20134 Contracted rating retroactively since January 1, 2019
New
7) Back-upChanges from the adoption of IFRS 16, Leases, as at September 30, 20191
26
1 For further details see page 39 and 40 of the 9M 2019 Financial Report2 Depreciation and amortization3 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Area Value ExplanationConsolidated Statement of Income
EBITFinancial result
+€24 mn-€24 mn
Positive impact on EBITNegative impact on financial result
Consolidated Statement of Financial PositionAssetsLiabilities
+€1,701 mn+€1,736 mn
As of September 30, 2019Property, plant and equipment
Long-term and short-term indebtedness
Consolidated Statement of Cash Flow
Free cash flow +€256 mn
Positive impact on D&A2 causesa higher cash flow arising from operating activities
and therefore a higher free cash flow
Trailing ROCE3 -10 bps Negative impact on trailing ROCE3
Capital expenditure (additions) +€214 mn Increase of capex (thereof €134 mn in the Rubber Group)
7) Back-upCorporation Highlights 9M 2019
27
1 Before amortization of intangibles from PPA, consolidation and special effects2 Amortization of intangibles from PPA, tax rate of 25% applied for EPS calculation for 2018, 28% for 20193 Attributable to the shareholders of the parent
› Sales Increase of 0.7% to €33,414.1 mn (PY: €33,174.3 mn); organic sales down 2.1%
› EBITDA Decrease of 13.9% to €3,980.0 mn (PY: €4,624.2 mn)
› EBIT Decrease of 113.2% to -€393.9 mn (PY: €2,989.8 mn);Adj. EBIT1 decrease to €2,366.8 mn (7.2% adj. EBIT1 margin);PPA2 effect -€133.6 mn; consolidation effects -€0.3 mn; total special effects -€2,621.3 mn
› NIAT3 Decrease of 142.4% to -€926.4 mn (PY: €2,185.8 mn)
› EPS3 EPS of -€4.63 (PY: €10.93);EPS excl. PPA2 -€4.15 (PY: €11.41 excl. PPA2)
› Capex Increase to €2,204.4 mn (PY: €1,956.2 mn); capex ratio 6.6% of sales; capex to depreciation coverage 0.5x (0.5x ex PPA2)
› R&D (net) Expenses increased by 5.7% to €2,678.0 mn (PY: €2,534.3 mn); R&D ratio 8.0% of sales (PY: 7.6%)
› Cash flow Operating cash flow down by €349.1 mn to €1,826.7 mn; free cash flow -€749.9 mn
› Net indebtedness Up by €3,792.2 mn to €5,453.5 mn vs. FY 2018;Liquidity and undrawn credit lines amounted to €5,303.3 mn
› Pension and similar obligations Long-term provisions for pension and similar obligations amounted to €5,498.0 mn (PY: €3,914.1 mn)
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
20
,97
8
21
,40
1
21
,88
6
22
,17
2
22
,39
7
22
,811
23
,25
6
23
,64
1
24
,74
0
25
,76
4
26
,11
9 20.0% 19.0% 20.6% 20.6% 19.8% 19.4% 18.3% 17.0%
15.5%13.5%
2.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2017 2018 2019
Trailing OA (€ mn) Trailing ROCE
7) Back-upSustainable Value Creation
28
1 Trailing operating assets are calculated as assets for the last twelve months (LTM)2 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets
1 2
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
7) Back-upKey Historical Credit Metrics
299M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1 Amounts shown may contain rounding differences2 Adjusted EBITDA as defined in syndicated loan 3 Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes4 Includes dividends received; income from equity-accounted and other investments; impairment and reversal of impairment losses; gains/losses from the disposal of assets, companies and business operations; as well as
changes in employee benefits and other provisions; and changes in other assets and liabilities 5 Adjusted EBITDA to net cash interest paid6 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes. To increase transparency, receivables from and liabilities to related parties have been reclassified
from changes in other assets and liabilities to changes from trade accounts receivable and payable, starting from the 2019 reporting year. The figures from the comparative period have been adjusted accordingly
(€ mn)1 2015 2016 2017 2018 6 LTMStatement of Cash Flows
Adjusted EBITDA2 6,094 6,125 6,701 6,190 5,946Reported EBITDA 6,001 6,057 6,679 6,236 5,592Net cash interest paid -174 -112 -105 -91 -67Tax paid -1,015 -1,047 -1,122 -848 -929
Change in net working capital3 -107 -210 -484 60 -239
Other4 210 250 253 -379 271Cash flow arising from operating activities 4,916 4,938 5,221 4,977 4,628Cash flow arising from investing activities -3,472 -3,167 -3,468 -3,626 -4,022 - thereof acquisitions -1,257 -516 -596 -418 -644 - thereof capex in PPE and intangibles -2,265 -2,708 -2,951 -3,285 -3,428Cash flow before financing activities 1,444 1,771 1,753 1,351 606Cash flow before acquisitions 2,701 2,288 2,349 1,769 1,250Statement of Financial PositionCash and cash equivalents 1,622 2,107 1,882 2,761 1,971Derivative instruments and interest-bearing investments 81 48 161 184 208Total indebtedness 5,245 4,952 4,090 4,607 7,633Net indebtedness 3,542 2,798 2,048 1,661 5,454Credit Ratios
Net indebtedness / adjusted EBITDA2 0.6x 0.5x 0.3x 0.3x 0.9x
Net cash interest paid coverage (ratio)5 35.1x 54.8x 63.6x 67.8x 89.3x
1,350
500 600
200 100
2019 2020 2021 2022 2023 2024 2025
30
As at September 30, 2019
(€ mn) FY 18 9M 19
Gross indebtedness 4,607 7,633
Cash 2,761 1,971
Net indebtedness 1,661 5,454
Available credit lines 3,504 3,332
Total liquidity 6,266 5,303
7) Back-upMaturities for Bonds1
1 All amounts shown are nominal values
Outstanding Bonds
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Outstanding Bonds (private placements after the end of the reporting period)
(€ mn)
1,795 1,956 2,204
1,440 1,506
4,240
128 128 134
2017 2018 2019Capex (PPE), percentage of sales
Depreciation, w/o PPA
PPA
5.5%5.9% 6.6%
-4.63
0.48
-4.15
EPS reported PPA per shareafter tax
EPS excl.PPA
7) Back-upCapex, Depreciation and Earnings per Share – Breakdown for 9M 2019
31
1 Amortization of intangibles from PPA2 Assuming corporate tax rate of 28%3 Including effects from IFRS 16
1
1
Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€)
1
2 1,2
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
3
3
7,243.0 7,214.0 7,033
13.3% 12.5% 11.7%
8.1%6.6%
2017 2018 2019
Sales (€ mn) EBITDA margin Adj. EBIT margin
7) Back-upAutomotive Group Financials – Chassis & Safety
32
Chassis & Safety 9M 2019
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
› Sales decreased by 4.6% before consolidation and FX effects
› EBITDA decreased by €78.0 mn to €823.1 mn (-8.7%)
› Adj. EBIT1 decreased by €118.3 mn to €464.9 mn (adj. EBIT1 margin 6.6%)
› EBIT decreased by €861.0 mn to -€279.3 mn(EBIT margin -4.0%)
› PPA effect in 9M 2019: €0 mn
› Special effects in 9M 2019: -€743.8 mn
1
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
5,760.8 5,824.0 5,893
10.7%
7.9%6.1%
2.8%0.4%
2017 2018 2019
Sales (€ mn) EBITDA margin Adj. EBIT margin
7) Back-upAutomotive Group Financials – Powertrain
33
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Powertrain 9M 2019› Sales decreased by 2.2% before consolidation and FX effects
› EBITDA decreased by €96.5 mn to€360.7 mn (-21.1%)
› Adj. EBIT1 decreased by €141.5 mn to €25.4 mn(adj. EBIT1 margin 0.4%)
› EBIT decreased by €373.6 mn to -€250.6 mn (EBIT margin -4.3%)
› PPA effect in 9M 2019: -€8.1 mn
› Special effects in 9M 2019: -€267.9 mn
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1
6,881.3 7,292.9 7,278.4
12.3%
14.2%
7.4%
8.6%
4.7%
2017 2018 2019
Sales (€ mn) EBITDA margin Adj. EBIT margin
7) Back-upAutomotive Group Financials – Interior
34
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Interior 9M 2019› Sales decreased by 1.5% before consolidation and FX effects
› EBITDA decreased by €500.3 mn to €537.5 mn (-48.2%)
› Adj. EBIT1 decreased by €277.4 mn to €336.9 mn(adj. EBIT1 margin 4.7%)
› EBIT decreased by €1,981.9 mn to -€1,241.1 mn(EBIT margin -17.1%)
› PPA effect in 9M 2019: -€42.3 mn
› Special effects in 9M 2019: -€1,540.0 mn
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1
8,387.4 8,289.0 8,691.6
23.7%21.6% 21.0%
16.3% 14.7%
2017 2018 2019
Sales (€ mn) EBITDA margin Adj. EBIT margin
7) Back-upRubber Group Financials – Tires
35
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Tires 9M 2019› Sales increased by 1.0% before consolidation and FX effects
› EBITDA increased by €27.2 mn to €1,821.6 mn (+1.5%)
› Adj. EBIT1 decreased by €102.4 mn to €1,250.1 mn(adj. EBIT1 margin 14.7%)
› EBIT decreased by €135.5 mn to €1,203.6 mn(EBIT margin 13.8%)
› PPA effect in 9M 2019: -€15.0 mn
› Special effects in 9M 2019: -€27.7 mn
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1
4,677.2 4,790.0 4,848.3
11.8%11.0% 10.6%
7.7% 7.8%
2017 2018 2019
Sales (€ mn) EBITDA margin Adj. EBIT margin
7) Back-upRubber Group Financials – ContiTech
36
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
ContiTech 9M 2019› Sales decreased by 2.7% before consolidation and FX effects
› EBITDA decreased by €13.0 mn to €516.0 mn (-2.5%)
› Adj. EBIT1 decreased by €2.0 mn to €368.3 mn(adj. EBIT1 margin 7.8%)
› EBIT decreased by €46.2 mn to €256.6 mn(EBIT margin 5.3%)
› PPA effect in 9M 2019: -€68.2 mn
› Special effects in 9M 2019: -€37.6 mn
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1
37
2017 – 9M 2019 Fact Sheets
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
7) Fact SheetsSales by Quarter
389M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market RelationsNote: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Chassis & Safety 2,497.4 2,437.8 2,307.8 2,524.8 9,767.8 2,511.2 2,455.2 2,247.6 2,374.0 9,588.0 2,359.0 2,384.0 2,289.8
Powertrain 2,003.1 1,947.2 1,810.5 1,900.1 7,660.9 1,945.6 2,025.2 1,853.2 1,917.0 7,741.0 2,005.6 1,961.4 1,925.8
Interior 2,293.9 2,318.4 2,269.0 2,423.9 9,305.2 2,401.7 2,539.3 2,351.9 2,414.3 9,707.2 2,395.2 2,474.7 2,408.5
Tires 2,756.3 2,815.7 2,815.4 2,938.4 11,325.8 2,635.5 2,801.6 2,851.9 3,063.2 11,352.2 2,830.5 2,871.0 2,990.1
ContiTech 1,521.4 1,587.5 1,568.3 1,569.2 6,246.4 1,601.7 1,629.9 1,558.4 1,554.7 6,344.7 1,572.9 1,677.1 1,598.3
Other / Consolidation -72.2 -73.6 -78.3 -72.5 -296.6 -83.0 -77.4 -75.2 -93.1 -328.7 -116.5 -104.2 -109.1
Continental Corporation 10,999.9 11,033.0 10,692.7 11,283.9 44,009.5 11,012.7 11,373.8 10,787.8 11,230.1 44,404.4 11,046.7 11,264.0 11,103.4
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Chassis & Safety 0.6 0.7 -2.6 -6.0 -1.8 -6.1 -2.9 1.9
Powertrain -2.9 4.0 2.4 0.9 1.0 3.1 -3.2 3.9
Interior 4.7 9.5 3.7 -0.4 4.3 -0.3 -2.5 2.4
Tires -4.4 -0.5 1.3 4.2 0.2 7.4 2.5 4.8
ContiTech 5.3 2.7 -0.6 -0.9 1.6 -1.8 2.9 2.6
Continental Corporation 0.1 3.1 0.9 -0.5 0.9 0.3 -1.0 2.9
Changes Y-o-Y in %2018 2019
Sales (€ mn)2017 2018 2019
7) Fact SheetsEBITDA by Quarter
399M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market RelationsNote: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 YearChassis & Safety 336.9 326.9 300.3 337.5 1,301.6 356.8 324.6 219.7 312.2 1,213.3 270.0 292.7 260.4
Powertrain 213.9 214.4 187.4 239.1 854.8 207.3 219.2 30.7 117.4 574.6 186.0 185.4 -10.7
Interior 273.6 288.1 287.0 291.3 1,140.0 283.4 312.1 442.3 351.4 1,389.2 235.4 269.7 32.4
Tires 651.3 674.8 661.7 760.9 2,748.7 545.8 645.0 603.6 700.8 2,495.2 610.0 597.8 613.8
ContiTech 191.3 175.6 184.0 200.0 750.9 195.9 186.5 146.6 172.4 701.4 178.8 152.9 184.3
Other / Consolidation -28.5 -27.4 -38.2 -23.0 -117.1 -34.2 -30.0 -31.1 -42.7 -138.0 -6.5 -41.6 -30.8
Continental Corporation 1,638.5 1,652.4 1,582.2 1,805.8 6,678.9 1,555.0 1,657.4 1,411.8 1,611.5 6,235.7 1,473.7 1,456.9 1,049.4
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 YearChassis & Safety 13.5 13.4 13.0 13.4 13.3 14.2 13.2 9.8 13.2 12.7 11.4 12.3 11.4
Powertrain 10.7 11.0 10.4 12.6 11.2 10.7 10.8 1.7 6.1 7.4 9.3 9.5 -0.6
Interior 11.9 12.4 12.6 12.0 12.3 11.8 12.3 18.8 14.6 14.3 9.8 10.9 1.3
Tires 23.6 24.0 23.5 25.9 24.3 20.7 23.0 21.2 22.9 22.0 21.6 20.8 20.5
ContiTech 12.6 11.1 11.7 12.7 12.0 12.2 11.4 9.4 11.1 11.1 11.4 9.1 11.5
Continental Corporation 14.9 15.0 14.8 16.0 15.2 14.1 14.6 13.1 14.3 14.0 13.3 12.9 9.5
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 YearChassis & Safety 5.9 -0.7 -26.8 -7.5 -6.8 -24.3 -9.8 18.5
Powertrain -3.1 2.2 -83.6 -50.9 -32.8 -10.3 -15.4 -134.9
Interior 3.6 8.3 54.1 20.6 21.9 -16.9 -13.6 -92.7
Tires -16.2 -4.4 -8.8 -7.9 -9.2 11.8 -7.3 1.7
ContiTech 2.4 6.2 -20.3 -13.8 -6.6 -8.7 -18.0 25.7
Continental Corporation -5.1 0.3 -10.8 -10.8 -6.6 -5.2 -12.1 -25.7
EBITDA margin in %2017 2018 2019
Changes Y-o-Y in %2018 2019
EBITDA (€ mn)2017 2018 2019
7) Fact SheetsEBIT by Quarter
409M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market RelationsNote: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
7) Fact SheetsAdjusted EBIT1 by Quarter
419M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 YearChassis & Safety 252.9 218.2 112.1 148.8 167.6 148.5
Powertrain 112.2 118.9 -64.2 78.9 72.5 -126.0
Interior 191.9 216.3 206.1 129.5 128.3 79.1
Tires 400.0 497.9 454.6 416.7 410.6 422.8
ContiTech 144.2 134.0 92.1 118.0 129.7 120.6
Other / Consolidation -35.0 -30.6 -32.0 -7.7 -40.6 -30.5
Continental Corporation 1,066.2 1,154.7 768.7 884.2 868.1 614.5
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 YearChassis & Safety 10.1 8.9 5.0 6.3 7.0 6.5
Powertrain 5.7 5.8 -3.4 3.9 3.7 -6.5
Interior 8.1 8.7 8.9 5.5 5.3 3.3
Tires 15.2 17.8 15.9 15.1 14.7 14.5
ContiTech 9.0 8.2 5.9 7.5 8.1 7.8
Continental Corporation 9.7 10.2 7.1 8.1 7.8 5.6
Q1 Q2 Q3 Q4 YearChassis & Safety -41.2 -23.2 32.5
Powertrain -29.7 -39.0 -96.3
Interior -32.5 -40.7 -61.6
Tires 4.2 -17.5 -7.0
ContiTech -18.2 -3.2 30.9
Continental Corporation -17.1 -24.8 -20.1
Adj. EBIT¹ margin in %2018 2019
Changes Y-o-Y in %2019
Adj. EBIT¹ (€ mn)2018 2019
7) Fact SheetsConsolidated Statement of Income
429M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market RelationsNote: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
7) Fact SheetsConsolidated Statement of Financial Position – Assets1
439M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
1 From the 2019 reporting year, the presentation of receivables from related parties is made more transparent by reclassifying receivables from operating service business from short-term other financial assets to trade accounts receivable among these items of the statement of financial position. The figures from the comparative periods have been adjusted accordingly
2 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
2
2
2
2
Assets (€ mn) September 30, 2019 December 31, 2018 September 30, 2018
Goodwill 5,107.1 7,233.4 7,037.6
Other intangible assets 1,708.5 1,566.3 1,503.0
Property, plant and equipment 14,735.9 12,375.5 11,665.7
Investment property 11.8 12.0 11.0
Investments in equity-accounted investees 417.9 644.9 635.8
Other investments 197.2 192.9 196.9
Deferred tax assets 2,171.3 1,464.4 1,527.7
Defined benefit assets 41.1 27.8 29.7
Long-term contract assets 0.1 0.1 0.1
Long-term derivative instruments and interest-bearing investments 54.2 32.4 38.6
Long-term other financial assets 117.1 81.4 72.6
Long-term other assets 25.0 27.6 25.8
Non-current assets 24,587.2 23,658.7 22,744.5
Inventories 5,038.9 4,521.1 4,690.0
Trade accounts receivable1 8,712.7 7,858.2 8,726.6
Short-term contract assets 102.8 67.4 84.6
Short-term other financial assets1 111.7 94.4 150.9Short-term other assets 1,477.2 1,124.2 1.256,62
Income tax receivables 287.7 208.2 204,22
Short-term derivative instruments and interest-bearing investments 153.7 151.8 153.4
Cash and cash equivalents 1,971.2 2,761.4 1,621.7
Assets held for sale 88.4 — 1.9
Current assets 17,944.3 16,786.7 16.889,92
Total assets 42,531.5 40,445.4 39.634,42
7) Fact SheetsConsolidated Statement of Financial Position – Total Equity and Liabilities1
449M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
1 From the 2019 reporting year, the presentation of liabilities to related parties is made more transparent by reclassifying liabilities from operating service business from short-term other financial liabilities to trade accounts payable among these items of the statement of financial position. The figures from the comparative periods have been adjusted accordingly
2 The presentation of short-term contract liabilities was made more transparent by reclassifying liabilities for selling expenses to short-term other financial liabilities. The figures from the comparative period have been adjusted accordingly
3 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes
2
3
3
2
3
3
3
Equity and liabilities (€ mn) September 30, 2019 December 31, 2018 September 30, 2018
Subscribed capital 512.0 512.0 512.0
Capital reserves 4,155.6 4,155.6 4,155.6
Retained earnings 13,820.8 15,697.2 14,985.7
Other comprehensive income -3,045.6 -2,514.4 -2,437.9
Equity attributable to the shareholders of the parent 15,442.8 17,850.4 17,215.4
Non-controlling interests 467.9 482.9 465.1
Total equity 15,910.7 18,333.3 17,680.5
Long-term employee benefits 5,777.6 4,407.0 4,186.6
Deferred tax liabilities 361.0 315.7 378.9
Long-term provisions for other risks and obligations 262.7 163.7 168.1
Long-term indebtedness 3,077.9 1,449.0 1,452.1
Long-term other financial liabilities 32.0 38.4 34.7
Long-term contract liabilities 11.8 11.0 16.6
Long-term other liabilities 18.6 13.4 14.6
Non-current liabilities 9,541.6 6,398.2 6,251.6
Short-term employee benefits 1,520.8 1,454.2 1,523.4
Trade accounts payable1 6,868.6 7,525.6 7,016.7
Short-term contract liabilities 197.6 150.2 118,32
Income tax payables 859.3 750.7 796,23
Short-term provisions for other risks and obligations 1,166.7 1,066.1 1.032,13
Short-term indebtedness 4,554.7 3,157.9 3,356.7Short-term other financial liabilities1
1,000.2 1,042.6 1.083,12
Short-term other liabilities 911.3 566.6 775,83
Current liabilities 17,079.2 15,713.9 15.702,33
Total equity and liabilities 42,531.5 40,445.4 39.634,43
7) Fact SheetsConsolidated Statement of Cash Flows
459M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market RelationsNote: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
1 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes. To increase transparency, receivables from and liabilities to related parties have been reclassified from changes in other assets and liabilities to changes from trade accounts receivable and payable, starting from the 2019 reporting year. The figures from the comparative period have been adjusted accordingly.
1
1
1
1
1
1
2019 2018 2019 2018Net income -895.6 2,223.5 -1,977.9 636.2Income tax expense 342.8 616.2 -53.5 176.4Financial result 158.9 150.1 60.9 39.0EBIT -393.9 2,989.8 -1,970.5 851.6Interest paid -110.5 -107,81
-57.1 -57.0Interest received 50.7 23,31
8.5 10,81
Income tax paid -689.5 -608,31-219.4 -171,41
Dividends received 26.2 22.6 10.2 7.0Depreciation, amortization, impairment and reversal of impairment losses 4,373.9 1,634.4 3,019.9 560.2Income from equity-accounted investees and other investments, incl. impairment and reversal of impairment losses 138.5 -44.7 150.4 -3.6Gains/losses from the disposal of assets, companies and business operations -7.1 -155.2 -2.8 -146.3Changes in
inventories -397.1 -562.7 -41.5 -160.2trade accounts receivable -473.6 -768,01
-217.7 -227,21
trade accounts payable -792.3 -33,31-122.2 -89,11
employee benefits and other provisions 271.0 -169.9 285.1 -15.1other assets and liabilities -169.6 -44,41
239.9 148,61
Cash flow arising from operating activities 1,826.7 2,175.8 1,082.8 708.3
Cash flow from the disposal of assets 23.1 43.0 7.6 7.2Capital expenditure on property, plant and equipment, and software -1,990.6 -1,956.2 -696.9 -781.8Capital expenditure on intangible assets from development projects and miscellaneous -194.3 -86.3 -56.9 -53.8Cash flow from the disposal of companies and business operations 1.1 8.9 0.3 9.1Acquisition of companies and business operations -415.9 -190.1 -61.3 -16.3Cash flow arising from investing activities -2,576.6 -2,180.7 -807.2 -835.6
Cash flow before financing activities (free cash flow) -749.9 -4.9 275.6 -127.3Change in indebtedness 961.3 701.7 -105.4 -362.5Successive purchases -70.8 -2.7 -0.3 -0.1Dividends paid -950.0 -900.0 — —Dividends paid to and cash changes from equity transactions with non-controlling interests -25.5 -29.3 -0.7 -1.8Cash and cash equivalents arising from first-time consolidation of subsidiaries 0.4 2.0 — 1.5Cash flow arising from financing activities -84.6 -228.3 -106.4 -362.9
Change in cash and cash equivalents -834.5 -233.2 169.2 -490.2Cash and cash equivalents at the beginning of the reporting period 2,761.4 1,881.5 1,786.3 2,131.5Effect of exchange-rate changes on cash and cash equivalents 44.3 -26.6 15.7 -19.6Cash and cash equivalents at the end of the reporting period 1,971.2 1,621.7 1,971.2 1,621.7
January 1 to September 30 Third Quarter(€ mn)
7) Fact SheetsReported and Adjusted 9M 2019 Results – by Division
469M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 16 applied starting 2019
(€mn) 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Sales 7,214.0 7,032.8 5,824.0 5,892.8 7,292.9 7,278.4 8,289.0 8,691.6 4,790.0 4,848.3 -235.6 -329.8 33,174.3 33,414.1
EBIT 581.7 -279.3 123.0 -250.6 740.8 -1,241.1 1,339.1 1,203.6 302.8 256.6 -97.6 -83.1 2,989.8 -393.9in % of sales 8.1% -4.0% 2.1% -4.3% 10.2% -17.1% 16.2% 13.8% 6.3% 5.3% 9.0% -1.2%
Amortization of intangible assets from PPA 0.0 0.0 8.6 8.1 38.2 42.3 13.4 15.0 67.9 68.2 0.0 0.0 128.1 133.6
Total special effects 1.5 743.8 22.8 267.9 -149.4 1,540.0 0.0 27.7 -0.1 37.6 0.0 4.3 -125.2 2,621.3
Total consolidation effects 0.0 0.4 12.5 0.0 -15.3 -4.3 0.0 3.8 -0.3 5.9 0.0 0.0 -3.1 5.8
Total consolidation & special effects 1.5 744.2 35.3 267.9 -164.7 1,535.7 0.0 31.5 -0.4 43.5 0.0 4.3 -128.3 2,627.1
Adjusted operating result (adj. EBIT) 1
583.2 464.9 166.9 25.4 614.3 336.9 1,352.5 1,250.1 370.3 368.3 -97.6 -78.8 2,989.6 2,366.8in % of adjusted sales 8.1% 6.6% 2.8% 0.4% 8.6% 4.7% 16.3% 14.7% 7.7% 7.8% 9.0% 7.2%
CorporationInteriorChassis & Safety Powertrain Tires ContiTech Cons./Corr.
7) Fact SheetsReported and Adjusted 9M 2019 Results – by Group
479M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 16 applied starting 2019
(€mn)2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Sales 6,411.2 6,554.9 4,390.0 4,561.4 -13.4 -12.9 10,787.8 11,103.4 20,203.4 20,005.8 13,011.8 13,450.7 -40.9 -42.4 33,174.3 33,414.1
EBIT 364.2 -2,424.5 519.4 487.2 -32.0 -33.2 851.6 -1,970.5 1,445.5 -1,771.0 1,641.9 1,460.2 -97.6 -83.1 2,989.8 -393.9in % of sales 5.7% -37.0% 11.8% 10.7% 7.9% -17.7% 7.2% -8.9% 12.6% 10.9% 9.0% -1.2%
Amortization of intangible assets from PPA 15.5 14.6 27.7 27.9 0.0 0.0 43.2 42.5 46.8 50.4 81.3 83.2 0.0 0.0 128.1 133.6
Total special effects -125.9 2,514.9 -0.3 23.4 0.0 2.7 -126.2 2,541.0 -125.1 2,551.7 -0.1 65.3 0.0 4.3 -125.2 2,621.3
Total consolidation effects 0.2 -3.4 -0.1 4.9 0.0 0.0 0.1 1.5 -2.8 -3.9 -0.3 9.7 0.0 0.0 -3.1 5.8
Total consolidation and special effects -125.7 2,511.5 -0.4 28.3 0.0 2.7 -126.1 2,542.5 -127.9 2,547.8 -0.4 75.0 0.0 4.3 -128.3 2,627.1
Adjusted operating result (adj. EBIT) 1 254.0 101.6 546.7 543.4 -32.0 -30.5 768.7 614.5 1,364.4 827.2 1,722.8 1,618.4 -97.6 -78.8 2,989.6 2,366.8in % of adjusted sales 4.0% 1.6% 12.5% 12.3% 7.1% 5.6% 6.8% 4.2% 13.2% 12.3% 9.0% 7.2%
9M 2018/2019Q3 2018/2019
Automotive Rubber Cons./Corr. Corporation Automotive Rubber Cons./Corr. Corporation
7) Fact SheetsContinental’s Credit Rating
48
1 Contracted rating since May 19, 20002 Contracted rating retroactive since January 1, 20193 Contracted rating since November 7, 2013
9M 2019 Results – November 12, 2019
EDMR – Equity and Debt Market Relations
BBB+ / Baa1
BBB / Baa2
BBB- / Baa3
BB+ / Ba1
BB / Ba2
BB- / Ba3
B+ / B1
B / B2
S&P, Fitch / Moody’s Standard & Poor’s1 Moody’s2 Fitch3
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