· 43 Safety and Environment: Tire Labeling Initiatives in Europe, USA, Japan, South Korea and...

Fact

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Continental Aktiengesellschaft

Investor Relations

P.O. Box 169, 30001 Hanover, Germany

Vahrenwalder Str. 9, Hanover, Germany

Phone +49 511 938-1163, Fax +49 511 938-1080

E-mail [email protected]

www.continental-ir.com

Continental AG is an Official Sponsor of the

2014 FIFA World Cup Brazil™.

Fact Book2013

www.continental-corporation.com

140203_Conti_Factbook_2013_Umschlag_425x297_IsoCV2.indd 1-3 05.02.14 11:31

Contents

I. Continental at a Glance

Slide Title Page

1 Disclaimer 7

3 More than 140 Years of Progress and Achievement 8

4 Continental Corporation – Sales, EBIT & Net Income 8

5 Continental Ranks No. 1 in Worldwide Supplier Ranking 9

6 Executive Board 9

7 Megatrends in the Automotive Industry 10

8 A Leading Global Supplier for Key Automotive Electronics Applications 10

9 A Leading Global Supplier of Tire and Non-Tire Rubber Products 11

10 Sales by Markets 11

11 EBITDA by Group and Corporation 12

12 Consolidated Sales 12

13 Number of Employees 13

II. Continental Strategy

Slide Title Page

15 Systematic Entrepreneurial Approach 14

16 Sustainable Value Creation 14

17 Cost Consciousness – Production in Best-Cost Countries 15

18 Balanced Distribution of Sales 15

19 Best Positioned for the 20 Fastest Growing Automotive Technologies until 2020 16

20 Continental Corporation Worldwide 16p

21 Sales OE Automotive/Non-OE Automotive 17

22 Technological Balance 17

23 Great People Culture 18

© Continental AG Fact Book 2013 | 1

Contents

III. Continental Megatrends

Slide Title Page

25 We Shape the Megatrends in the Automotive Industry 19

26 Environment: Initiatives in EU, USA and Japan – Towards Cleaner Mobility 19

27 Environment: Initiatives Towards Cleaner Mobility in Various Markets 20

28 Environment: Engine Development Roadmap 20

29 Environment: Reduction of CO2 Emissions: Solutions by Continental 21

30 Environment: Development of Worldwide Turbo Charger Volumes 21

31 Information: Interior: Examples of market specific Initiatives and Projects 22

32 Information: Interior: The Car Will Be Connected to Its Environment 22

33 Information: Interior: Product Highlights for Intelligent Mobility 23

34 Safety: Market specific Initiatives – Towards Safer Mobility 23

35 Safety: Road Traffic Deaths per 100,000 Inhabitants by Region 24

36 Safety: Global Development of Active Safety Regulations & Ratings 24

37 Safety: Euro NCAP 5 Star Rating Requirements 25

38 Safety: History roadmap for Accident-Free Driving 25

39 Safety: Future Automotive Trends 26

40 Safety: Future Automotive Trends Require System Competence 26

41 Safety: World Market Forecast for Driver Assistance Systems 27y y

42 Safety: Winter Tire Regulation 27

43 Safety and Environment: Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil

28

44 Tires: Key Initiatives 2001 – Vision 2025 28

45 Tire Sales and Growth Pillars – Supporting Elements of our Vision 2025 29

46 Additional Tire Production Capacity of 26 mn Units by 2017/18 29

47 Tires Vision 2025 – Towards a more Balanced Footprint 30

48 Environment: ContiTech: Engineering Green Value 30

49 Environment: ContiTech: Cumulative Market for ContiTech Products 31


Contents

IV. Continental Corporation

Slide Title Page

51 Key Consolidated Figures 32

52 Sales and Adjusted EBIT by Quarter 32

53 Key Historical Financials and Credit Metrics – IAS 19 (rev. 2011) applied 33

54 Development of Net Indebtedness and Gearing Ratio 33

55 Gross Indebtedness by Sources 34

56 Maturities for Gross Indebtedness 34

57 Purchasing – Production Materials 2013 35

V. Market Data

Slide Title Page

58 Development of Raw Material Prices 35

60 Increasing Installation Rates of Electronic Brake Systems 36

61 Installation Rates of Fuel Injection Systems 37

62 Development of Transmissions Technologies 37

63 Increasing Installation Rates of Turbocharger in Gasoline Engines 38

64 Increasing Installation Rates of Keyless Entry Systems 38

65 Increasing Installation Rates of Multimedia Systems 39

66 Increasing Installation Rates of Advanced Driver Assistance Systems 39

67 Increasing Installation Rates of Head-Up Displays 40

68 Production of Light Vehicles 2011 – 2014 40

69 Production of Heavy Vehicles 2011 – 2014 41y

70 Replacement Passenger, Light Truck and 4x4 Tires 2011 – 2014 41

71 Replacement Truck Tires 2011 – 2014 42

VI. Automotive Group

Slide Title Page

73 Key Figures 43

74 Sales and Adjusted EBIT by Division 43

75 Sales by Markets 4475 Sales by Markets 44

76 Order Intake (LTS) in the Automotive Group €25 bn in 2013 44


Contents

VI.1. Automotive Group – Chassis & Safety Division

Slide Title Page

78 Business Units and Key Products 45

79 Locations Worldwide 46

80 Key Figures 46


82 Market Position for Electronic Brake Systems 2013 47

83 Market Position for Foundation Brake Systems 2013 48

84 Market Position for Actuation 2013 48

85 Market Position for Airbag Electronics 2013 49

86 Market Position for Advanced Driver Assistance Systems 2013 49

87 Growing Sales Volume for Electronic Brake Systems 50

VI 2 Automotive Group Powertrain DivisionVI.2. Automotive Group – Powertrain Division

Slide Title Page



91 Key Figures 52


93 Market Position for Diesel Injection Systems 2013 53

94 Market Position for Gasoline Injection Systems 2013 53

95 Market Position for Transmission Control Units 2013 54

VI.3. Automotive Group – Interior Division

Slide Title Page



99 Key Figures 56


101 Market Position for Body & Security 2013 57

102 Market Position for Instrumentation & Driver HMI 2013 57

103 Market Position for Infotainment & Connectivity 2013 58103 Market Position for Infotainment & Connectivity 2013 58

104 Market Position for Commercial Vehicle 2013 58


Contents

VII. Rubber Group

Slide Title Page

106 Key Figures 59

107 Sales and Adjusted EBIT by Division 60


VII.1. Rubber Group – Tires Division

Slide Title Page

110 Business Units and Tire Brands 61

111 Key Figures 62


113 Market Share for Passenger and Light Truck Tires 2013 63

114 Market Share for Truck Tires 2013 63

115 Continental Worldwide PLT Production 2013 64

116 Continental European PLT Production 2013 64

117 Continental Worldwide Truck Tire Production 2013 65

118 Cost of Labor at Continental Manufacturing Sites 65

119 Passenger and Light Truck Tires: Product Mix Improvement 66

120 Passenger and Light Truck Tires: Unit Sales 2008 - 2013 66

121 Commercial Vehicle Tires: Unit Sales 2008 - 2013 67

VII.2. Rubber Group – ContiTech Division

Slide Title Page



125 Key Figures 69

126 Sales by Markets 69y

127 A Leading Global Supplier in its Business Units 70

128 Product Overview 70

129 Sales and Employees 2013 71

130 Forming a Global Player in Rubber and Plastics Technologies 71


Contents

VIII. Sustainability at Continental

Slide Title Page

132 Our Policies and Guidelines 72

133 Corporate Environmental Key Performance Indicators 73

134 Emission Reduction – Electrification Tailored to Fit (48-Volt Eco Drive) 73

135 Research in Alternative Raw Materials for Tire Production 74

136 Equal Opportunity 74

137 Corporate Memberships (1) 75

138 Corporate Memberships (2) 75

IX. Share and Bond Information

Slide Title Page

139 Health and Occupational Safety 76

140 Corporate Bodies 76

g

142 Share Data / ADR Data 77

143 Share Price Development vs. Major Stock Indexes 78

144 Common Stock 78

145 Shareholder Structure 79

146 Bond Details 79146 Bond Details 79

147 Development of the Bonds 80

148 Development of Continental’s Credit Rating 80

149 10 Year Financial Overview 81

X. Glossary

Slide Title Page

151 Financial Glossary 82

152 Product and Division Glossary 82

153 Contact Data 83

154 Financial Calendar 83


Disclaimer

This Fact Book has been prepared by Continental Aktiengesellschaft and includes information available to us as of March 6, 2014.

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 of its affiliates 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 or

any other financial investment or exposure 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.

1

2

Topics

Continental at a GlanceI. 3

Continental StrategyII. 15

Continental MegatrendsIII. 25

Continental CorporationIV. 51

Market DataV. 60

Automotive GroupVI. 73

Rubber GroupVII. 106

Sustainability at ContinentalVIII. 132

Share and Bond InformationIX. 142

GlossaryX. 151


I. Continental at a GlanceMore than 140 Years of Progress and Achievement

3

Merger with major companies of

the German rubber industry to

form Continental Gummi-Werke

AG.

Acquisition of a US

company’s Automotive

Brake & Chassis unit,

the core of which is

Alfred Teves GmbH in

Frankfurt.

Continental-Caoutchouc- und

Gutta-Percha Compagnie is

founded in Hanover, Germany.

Continental strengthens its

position in the ASEAN

market and Australia by

establishing

its Continental Sime Tyre

joint venture.

Takeover of the European tire operations of Uniroyal,

the tire operations of the Austrian company Semperit,

the North American tire manufacturer General Tire.

Continental reinforces its activities by

acquiring Temic, the international

electronics specialist.

Continental acquires Siemens VDO Automotive AG and

advances to among the top five suppliers in the

automotive industry worldwide, at the same time boosting

its market position in Europe, North America and Asia.

Continental expands its activities in

telematics, among other fields, with

the acquisition of the automotive

electronics business from Motorola.

Through the acquisition of

Phoenix, ContiTech becomes

one of the world’s leading

specialists for rubber and

plastics technology outside the

tire industry.

1871

1929

1979

1985

1987 1998

2001

2003 2004

2006

2007

Continental acquires a majority interest in

the Slovak company Continental Matador

Rubber s.r.o. and expands its position for

the Tire and ContiTech divisions in Central

and Eastern Europe.

2011

Continental strengthens its

position in the tire business

in Asia by acquiring the

Indian tire manufacturer

Modi Tyres Company

Limited.

2012

2013

Continental founds a jointly managed

company together with SK Innovation to

supply first-class lithium-ion battery

technology as partners in the future.

It also acquires Parker Hannifin’s

automotive air conditioning business, the

conveyor belt producer Legg Company

and the conveyor belt activities of Metso.

2014

Continental intends to

strengthen its position in

rubber and plastic

technology by acquiring

Veyance Technologies.

I. Continental at a GlanceContinental Corporation – Sales, EBIT & Net Income1(in € mn)

4

1Net income attributable to the shareholders of the parent, from 1998 until 2003 US GAAP / from 2004 onwards IFRS.

2 Siemens VDO incorporated starting December 1, 2007.

IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.

6,7439,132

10,11511,233 11,408 11,534

12,597

13,83714,887

16,619

24,239

20,096

26,047

30,505

32,73633,331

398 607 533

33

694 855 1,157

1,507 1,602 1,676

-296

-1,040

1,935

2,597

3,186 3,264

138 235 205

-258

226 314 716

930 982 1,021

-1,124 -1,649

576

1,242

1,905 1,923

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US GAAP IFRS

Sales

EBIT

NIAT1

2


I. Continental at a GlanceContinental Ranks No. 1 in Worldwide Supplier Ranking

5

Top 10 Global OEM Suppliers – 2013 Sales (in € mn)1 2 3 4 50

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Con

tin

en

tal

De

nso

Rob

ert

Bo

sch

Bri

dg

esto

ne

Mag

na

Hun

day M

ob

is

Ais

in S

eik

i

Mic

helin

Fau

recia

JC

I

1Continental not including ContiTech Industrial business.

2Robert Bosch only includes Automotive Technology division.

3Bridgestone including Diversified Products.

4Aisin Seiki excluding Life & Energy related products.

5Johnson Controls only includes Automotive Experience division.

Source: Company filings. Calendarized to December year end. Based on average currency exchange rates 2013

I. Continental at a GlanceExecutive Board

6

Chairman of the

Executive Board

Corporate

Functions

› Corporate Quality

and Environment

› Corporate

Communications

› Continental

Business System

› Automotive Central

Functions

Dr. Elmar Degenhart

Elke StrathmannWolfgang Schäfer

Dr. Ralf Cramer

Corporate

Functions

› Human Resources

› Director of

Labor Relations

› Corporate

Social Responsibility

Corporate

Functions

› Finance

› Controlling

› Compliance

› Law

› IT

Continental ChinaFrank Jourdan José A. AvilaHelmut Matschi Nikolai Setzer

Heinz-Gerhard Wente

Chassis &

Safety

Division

Powertrain

Division Interior

Division

Tires

Division

ContiTech

Division

Corporate

Function

› Purchasing


I. Continental at a GlanceMegatrends in the Automotive Industry

7

218

180

144

180161

117142 130

951

128 125 105

2010 2015E 2020E

USA China EU Japan

Road Traffic Deaths

CO2 Targets (g/km)

1Mandatory for 95% of the OEM’s fleets

Source: ICCT Int. Council of Clean Transportation, Global Passenger

Vehicle FE/GHG regulations (6/2012).

Safety – For safe mobility

Environment – For clean power Information – For intelligent driving

Affordable Cars – For global mobility

A&B Segment in BRIC (mn units)

1Data based on framework created by the World Health

Organization (WHO) for estimating road traffic mortality.

Source: Global Status Report on road safety, WHO 2013.

Number of Road Traffic Deaths per 100,000 by Region1

12.2

17.6

2012 2017E

Source: IHS January 2013.

Region of

the

Americas

African Region

Eastern

Mediterranean

Region

South-East

Asia Region

Western

Pacific

Region

European

Region

14.0

2009 2013

16.132.1

24.6

2009 2013

2009 2013

32.0

21.3

2009 2013

16.618.7

15.618.3

2009 2013

2009 2013

13.310.3

Driver and Passenger Devices Infrastructure Other Cars

Vehicle

8

1Before amortization of intangibles from PPA, consolidation and special effects.

2ESC: Electronic Stability Control is a type of electronic brake system.

3Source: IHS, The global outlook for automotive OEM electronic systems.


› Actuation

› Advanced driver assistance

systems

› Airbag electronics

› Electronic brake systems (EBS)

› Foundation brake systems

› Diesel injection systems

› Gasoline injection systems

› Transmission control units

› Double clutch transmission

control units

› Body and security products

› Commercial vehicle interiors

› Device connectivity and

telematics units

› Instrumentation, displays and

human machine interfaces

Sales 2013 €7,269 mn% of total 22%

Adj. EBIT1 €690 mnAdj. EBIT margin 9.5%





ESC2 installation rate by markets (%)

Gasoline direct injection systems

installation rate by markets (%) OEM Electronic Systems3 (in $ bn)

Chassis & Safety Powertrain Interior

21%

36%

20%

52%

2012 2017EEU NAFTA

19%

39%

73%

89%

2012 2017EChina EU

31 %27 %

27 %

24%24 %

23%18 %

26 %

2010 2020ERest of World EU China NAFTA

157

239

I. Continental at a GlanceA Leading Global Supplier for Key Automotive Electronics Applications


I. Continental at a GlanceA Leading Global Supplier of Tire and Non-Tire Rubber Products

9



› Markets

› EMEA

› The Americas

› APAC

› Products

› Original equipment

› Winter tires

› High performance tires

› Markets

› EMEA

› The Americas

› APAC

› Products

› Original equipment

› Replacement

› Automotive hoses and hose lines

› Automotive interior trim

› Conveyor belts

› Marine and oil hoses and hose

lines

› Multiple V-ribbed belts and

timing belts

› Railway air springs

› Truck and bus air springs


Adj. EBIT1 €1,791 mnAdj. EBIT margin 18.7%

Passenger & Light Truck Tires Commercial Vehicle Tires

ContiTech

Sales breakdown (%) Sales breakdown (%)

Tires

1Before amortization of intangibles from PPA, consolidation and special effects.


OE29%

Non-OE

71%

OE56%

Non-OE

44%

I. Continental at a GlanceSales by Markets

10

Automotive Group 2013

€20,016 mn

Rubber Group 2013

€13,356 mn

Corporation 2013

€33,331 mn

Germany26%

Europe(excluding Germany)

23%

NAFTA23%

Asia25%

Other countries

3%Germany

21%


40%

NAFTA20%

Asia11%

Other countries

8%

Germany24%


30%

NAFTA22%

Asia19%

Other countries

5%


I. Continental at a GlanceEBITDA by Group and Corporation

11

Automotive Group 2013

€2,491 mn

Rubber Group 2013

€2,714 mn

Corporation 2013

€5,095 mn

Chassis &

Safety

44%

Powertrain

22%

Interior

34%

Chassis & Safety40%

Powertrain26%

Interior34%

Tires79%

ContiTech21% Chassis &

Safety19%

Powertrain13%

Interior16%

Tires

41%

ContiTech

11%


I. Continental at a GlanceConsolidated Sales

12

1 1

1

1Since 2012 reported as Tires.

2009 2010 2011 2012 2013

Germany Rest of Europe NAFTA Asia Other markets

by Markets

29% 27% 26% 25% 24%

34%

33%

33% 30% 30%18%

19%

19%22% 22%

14%

16%

17%18% 19%

5%

5%

5%

5%5%

20.1

26.0

30.5

32.733.3

2009 2010 2011 2012 2013

ContiTech Tires

Commercial Vehicle Tires Passenger and Light Truck Tires

Interior Powertrain

Chassis & Safety

by Division

16%

(in bn €) (in bn €)

20.1

26.0

30.5

32.733.3

22%22% 21% 21% 22%

21%

21%

20%20% 20%

23%

22%

5%

17%

18%19%

19% 19%

22%

29% 28%

5%

6%

12%

12%

12%

11% 11%


I. Continental at a GlanceNumber of Employees

131

Since 2012 reported as Tires.

2009 2010 2011 2012 2013

Germany Rest of Europe NAFTA Asia Other markets

by Markets

33% 31% 30% 29% 28%

33%32%

31% 31% 31%

14%14%

15%16%

16%14%

16%

18%18%

19%

6%

7%

6%6%

6%

134,434

148,228

163,788169,639

177,762

2009 2010 2011 2012 2013

ContiTech Tires

Commercial Vehicle Tires Passenger and Light Truck Tires

Interior Powertrain

Chassis & Safety

by Division

20% 21% 20% 20% 21%

18%18%

19% 18% 18%

20%20%

19%20%

19%20%

19%

19%

25%25%

16%

17%

17%17%

17%

134,434

148,228

163,788169,639

177,762

6%

5%

6%

1 1

1

14

Topics





Market DataV. 60





GlossaryX. 151


II. Continental StrategySystematic Entrepreneurial Approach

15

Affordable Cars –

For global mobility

Safety –

For safe mobility

Information –

For intelligent driving

Environment –

For clean power

Value Creation

is Our Driving

Force

Great people

culture

Value

creation

Regional

sales

balance

Technological

balance

In the market

for the market

Balanced

customer

portfolio

Top

market

position

15

,65

9

15

,65

5

15

,79

0

16

,01

9

16

,27

2

16

,62

7

16

,93

4

16

,95

4

17

,01

4

17

,00

8

16

,91

5

16

,80

4

13.2%14.1%

15.7% 16.2% 16.8%17.6% 17.9% 18.1%

18.8% 18.5% 18.6% 19.4% 19.4%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013

trailing OA (mn €) trailing ROCE (%) trailing ROCE (%) IAS 19 (rev. 2011)

II. Continental Strategy – Value CreationSustainable Value Creation

16

1Trailing operating assets are calculated as assets for the last twelve months (LTM).

2Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets (OA) for the LTM.

3Q4/12, Q1/13, Q2/13, Q3/13 and Q4/13 applying IAS 19 (rev. 2011) .

1 2 3


II. Continental Strategy – Value CreationCost Consciousness – Production in Best-Cost Countries1

17

66%60%

92%

46%

62%70%

65%

96%

54%60%

Rest of world

2010 20131

All years restated based on new definition of best-cost countries.2

Based on sales.3

Based on units.

34%

19%

33%

69%

29%

36%

27%

38%

72%

34%

Europe

Chassis & Safety2 ContiTech2Interior2 Tires3Powertrain2

Chassis & Safety2 ContiTech2Interior2 Tires3Powertrain2

II. Continental Strategy – Regional Sales BalanceBalanced Distribution of Sales

18

≥

% of consolidated sales

Mid- to long term

~Germany29%


34%

NAFTA18%

Asia14%

Other countries

5%Germany

24%


30%

NAFTA22%

Asia19%

Other countries

5%

Rest of world45%

NAFTA25%

Asia30%

Sales in 2013: €33.3 bnSales in 2009: €20.1 bn

≥


II. Continental Strategy – Top Market PositionBest Positioned for the 20 Fastest Growing Automotive Technologies until 2020

19

Source: Based on Frost & Sullivan, November 2013, based on 2012 data.1

Compound annual growth rate.2 Emitec.

3No complete system but electronics or components.

AHigh growth

CAGR 1 25% - 100%

CLow growth

CAGR 1 5% - 14%

CA

GR

1

Expected worldwide revenue development in %

(CAGR 1 2012-2020)

BMedium growth

CAGR 1 15% - 24%

CAGR1 Product portfolio of

Gasoline particulate filters 76% Powertrain2

Selective catalytic reduction 57% Powertrain/ContiTech3

Switchable coolant and oil pumps 43% Powertrain

Lane departure warning 29% Chassis & Safety

Electric motors 27% Powertrain

Advanced parking assistance 27% Chassis & Safety

Turbocharger (% of gasoline) 23% Powertrain

Start stop systems 22% Powertrain

Battery propulsion systems 22% Powertrain

Forward collision avoidance 21% Chassis & Safety

Blind spot detection 20% Chassis & Safety

Advanced voice recognition 17% Interior

Electric power steering 14% Chassis & Safety

Touch screens 14% Interior

Adaptive cruise control 13% Chassis & Safety

Head-up displays 11% Interior

App interface solutions 11% Interior

Electronic stability control 9% Chassis & Safety

Tire pressure monitoring system 9% Interior

OEM navigation 5% Interior

II. Continental Strategy – In the Market for the MarketContinental Corporation Worldwide

20

Europe

South America

Argentina

Brazil

Chile

Columbia

EcuadorAlgeria

Republic of South Africa

Morocco

Africa

Australia

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Netherlands

Norway

Czech Republic

Hungary

Kazakhstan

Poland

Romania

North America

Canada

Mexico

USA

Portugal

Spain

Sweden

Switzerland

United Kingdom

Status: January 2014.

Russia

Serbia

Slovakia

Turkey

Asia

China

India

Indonesia

Japan

Malaysia

Philippines

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

United Arab

Emirates

More than 300 sites for production, R&D and sales in 49 countries. Headquarter in Hanover, Germany.


II. Continental Strategy – Balanced Customer Portfolio Sales OE Automotive/Non-OE Automotive

21

OE Non-OE

Chassis & Safety22%

Powertrain18%

Interior18%

Tires8%

ContiTech6%

Non-OE28%

2013: 28% of corporation is Non-OE sales

100

99

89

29

56

11

71

44

Chassis & Safety(22% of total sales)

Powertrain(19% of total sales)

Interior(20% of total sales)

Tires(28% of total sales)

ContiTech(11% of total sales)

1

II. Continental Strategy – Technological Balance Technological Balance

22

TimeCAGR ≥ 5-10% 0%<CAGR<10% CAGR ≤ 0%

Introduction Growth Maturity Saturation/

Decline

Strategy

› Establish standards & leverage R&D Cost

› Migrate to all car segments

› Extend customer portfolio

› Reach market leading position

Strategy

› Defend leading market position and market share

› Cost control

› Economies of scale

› Standardization and/or scalability

› System integration


II. Continental Strategy – Great People Culture Great People Culture

23

24

Topics





Market DataV. 60





GlossaryX. 151


III. Continental MegatrendsWe Shape the Megatrends in the Automotive Industry

25

Information – For intelligent driving

Affordable Cars – For global mobility

Environment – For clean power

Safety – For safe mobility

III. Continental Megatrend: EnvironmentInitiatives in EU, USA and Japan – Towards Cleaner Mobility

26

EU aims to reduce CO2 emissions by

improvement in vehicle technology:

› For passenger cars, EU targets average

CO2 emissions at:

› 130 g/km* from 2015

› 95 g/km from 2020

› For passenger cars, excess emissions

surcharges will be implemented in steps

from 2012 onwards (100% penalty only

starting in 2015 for not meeting targets)

› For light commercial vehicles, EU

targets average CO2 emissions at:

› 175 g/km from 2017

› 147 g/km from 2020

EU1

1Regulations (EC) No. 443/2009 and (EU) No. 510/2011.

2US Federal Register (May 7th, 2010): Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy Standards; Final Rule.

3US Federal Register (Oct. 15th, 2012): 2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions and Corporate Average Fuel Economy Standards; Final Rule.

4Refers to “Act on the Rational Use of Energy” of the Ministry of Economics, Trade and Industry (METI) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

5NHTSA: National Highway Traffic Safety Administration.

6EPA: Environmental Protection Agency.

7CAFE: Corporate Average Fuel Economy.

835.5 mpg CAFE = 249 g/mile CAFE = 171 g/km NEDC; 54.5 mpg CAFE = 162g/mile CAFE = 106.9 g/km NEDC.

9ECCJ: Energy Conservation Center Japan.

1016.8 km/l JC08 = 139.2 g/km JC08 = 125 g/km NEDC.

Emerging markets likely to follow Europe/USA/Japan on fuel efficiency standards

NHTSA5 and EPA6 to establish a National

Fuel Efficiency Policy (NFEP):

› For passenger cars and light trucks

combined, CAFE7 set to increase to:

› 35.5 mpg* by 20168

› 54.5 mpg by 20258

USA2,3

ECCJ9 aims to improve fuel efficiency

standards by 23.5% by 2015 vs. 2004:

› For passenger cars and light duty trucks

(<3.5 metric tons), the aim is to increase

average level of fuel efficiency to:

› 16.8 km/l* by 201510

Japan4

Test cycle: CAFE (Corporate Average Fuel Economy)

* Miles per gallon

Test cycle: JC08 (Japanese Cycle)

* Kilometers per liter

Test cycle: NEDC (New European Driving Cycle)

* Gram per kilometer


III. Continental Megatrend: EnvironmentInitiatives Towards Cleaner Mobility in Various Markets

27

60

90

120

150

180

210

240

270

2000 2005 2010 2015 2020 2025

US-LDV US-Car EU Japan China S. Korea

Gram CO2 per kilometer, normalized to NEDC1

Source: International Council on Clean Transportation and Zeit Online “EU-Staaten einig über Klimaauflagen für Neuwagen“ – 04.03.20141

New European Driving Cycle. 2

US light-duty vehicles include light commercial vehicles.3

In 2020 mandatory for 95% of the OEM’s fleets. As of 2021 mandatory for 100%.4

China’s target reflects gasoline fleet scenario. If other fuel types are included, the target is lower.

Solid dots and lines: historical performance and enacted targets.

Solid dots and dashed lines: proposed targets and studies.

2 3 4

III. Continental Megatrend: EnvironmentEngine Development Roadmap

28Source: IHS and Continental estimates Q1/2013.1

Percentage of worldwide light vehicle production volume.

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Diesel Gasoline Port Fuel Gasoline Direct Injection Natural Gas Hybrid Electric Vehicle Electric Vehicle

Light vehicle production by powertrain (mn units)

63%150%1

36%1

24%1

12%132%1

21%1 21%1 20%1

21%1

20%1

39%1

17%1

4%1

10%1

2%1

3%1


III. Continental Megatrend: EnvironmentReduction of CO2 Emissions1: Solutions by Continental

29

1Saving potential compared with gasoline direction injection Euro 5.

2Selective Catalytic Reduction.

3DEKA injector for diesel dosing into exhaust gas.

4Advanced Energy Supply.

5Tire Pressure Monitoring System.

6Power-On-Demand.

Hybrid electric vehicle (HEV)

Compressed Natural Gas (CNG)

Piezo common rail injection

Engine downsizing and turbocharger

Telematics, ACC, ADAS

SCR systems/DDS

Energy management (AES )

Tires (rolling resistance, TPMS )

Double clutch transmission (DCT)

Transmission (POD )

Energy management (POD )

Brake systems Min Max

~25%

15-20%

10-20%

5-12%

5%

2-5%

3%

3%

1-2%

1-2%

5%

2 3

4

6

6

~15%

5

III. Continental Megatrend: EnvironmentDevelopment of Worldwide Turbo Charger Volumes

30Source: IHS and Continental estimates as at January 2014.

Gasoline turbo charger by cubic capacity (thousand units)

0

10,000

20,000

30,000

40,000

2012 2016 2020 2012 2016 20202012 2016 2020 2012 2016 2020

Smaller than 1.5 liter 1.5 < 2.5 liter 2.5 < 3.5 liter ≥ 3.5 liter

10%

29%

36%

CAGR Engines = 6.5%

CAGR Turbo = 24.8%

12%

24%34%

12% 23% 36%

Gasoline cars Turbo installation rate

Diesel turbo charger (thousand units) Gasoline turbo charger (thousand units)

0

20,000

40,000

60,000

80,000

100,000

2012 2016 2020

Cars Turbo installation rate

2012 2016 2020

Cars Turbo installation rateCAGR Engines = 2.9% CAGR Turbo = 3.0% CAGR Engines = 3.2% CAGR Turbo = 19.2%

11%

25%33%

97% 99% 99%

3% 6% 10%

CAGR Engines = 1.8%

CAGR Turbo = 15.4%

CAGR Engines = 0.0%

CAGR Turbo = 14.6%

CAGR Engines = -4.5%

CAGR Turbo = 13.5%


III. Continental Megatrend: InformationInterior: Examples of market specific Initiatives and Projects

31

› Tire pressure monitoring

system (TPMS)1,2,3,4,13,14

› Electric vehicle market

push5,6

› E-call5,7,15,16

› Hands-free telephony8

› Stolen vehicle tracking9

› Rear detection system10

1Regulation (EC) No. 661/2009 for Passenger Vehicles.

2Federal Motor Vehicle Safety Standard No. 138 of NHTSA for passenger vehicles.

3Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan.

4Korean Motor Vehicle Safety Standard (KMVSS) - MLTM Notification 2010-631.

5Directive 2010/40/EU of the European Parliament and of the Council of July 2010.

6COM(2011) 144 final.

7Recommendation adopted by the European Commission September 2011.

8Several national laws and regulations in Asia/ Europe/ NAFTA/ Africa.

› Digital tachograph (DTCO)11

› Electronic onboard recorder

(EOBR)12

› Intelligent transport

systems (ITS)5,6

9CONTRAN 245/2007 - no final rule in place.

10For single-unit trucks. FMVSS 111 - no final rule in place.

11Proposed revision of Regulation (EEC) No. 3821/85.

12FMCSA Proposed rule 395 January 2011 / President signed legislation

MAP21 in July 2012.13

House Bill for Commercial Vehicle Safety - H.R. 4348 29.06.2012 TPMS for

Motorcoaches.14

DG CLIMA 2013 study on TPMS Cost / Benefit for Commercial Vehicles.15

Russia ERA specifications - no final rule in place.16

European Commission Brussels, C(2012) 8509 final.

ELVIREID4EV

Test field“HeERO”

ERTICOSim-TD

Environment Safety Information

Doing more.

For intelligent driving.Doing more.

For safe mobility.Doing more.

For clean power.

European Projects:

ELVIRE = Electric vehicle communication to infrastructure, road services and energy supply.

ID4EV = Intelligent dynamics for fully electric vehicles.

HeERO = Harmonized eCall European pilot.

ERTICO = European road transport telematics implementation coordination organisation.

Sim-TD = Safe and intelligent mobility – field test Germany.

III. Continental Megatrend: InformationInterior: The Car Will Be Connected to Its Environment

32

With our intuitive and ergonomic human-

machine interface (HMI), we capture

commands, prioritize and present information.

Driver and passengers Devices Infrastructure Other vehicles

We add new functions by providing a connection to the outside world as well as value-added services.

We manage and optimize the information flow by systems integration of components.

Vehicle

Our Mission: Information management in the vehicle for driver and passengers – a key to realizing clean power and zero accidents


III. Continental Megatrend: Information Interior: Product Highlights for Intelligent Mobility

33

All at lower cost

We inform you well

We connect

Existing solutions:

› Freely programmable cluster

› Multimedia and telematics platforms

› Tire information systems

› Head-up displays

› Intelligent fleet management

Innovations:

› Holistic HMI

› Intelligent antenna module

› Digital key, NFC

› Augmented reality head-up displays

› ITS services and apps

III. Continental Megatrend: SafetyMarketspecific Initiatives – Towards Safer Mobility

34

› Electronic stability control (ESC)

› mandatory as of Nov. 2011 for all new types of vehicles

› mandatory as of Nov. 2014 for all new vehicles1

› Tire pressure monitoring system (TPMS)

› mandatory as of Nov. 2012 for all new types of passenger cars

› mandatory as of Nov. 2014 for all new passenger cars2

› Advanced emergency braking system and lane departure warning

› mandatory as of Nov. 2013 for all new types of heavy commercial vehicles and buses

› mandatory as of Nov. 2015 for all new heavy commercial vehicles and buses2

› Brake assist system

› mandatory as of Nov. 2009 for all new types of passenger cars

› mandatory as of Nov. 2011 for all new passenger cars3

› Motorcycle anti-lock brake system (ABS)

› mandatory as of Jan. 2016 for all new types of vehicles

› mandatory as of Jan. 2017 for all new vehicles4

EU


› mandatory since 2011 for all new light vehicles5


› mandatory as of Sept. 2007 for all new light vehicles6

USA


› mandatory as of Oct. 2012 for all new types of passenger cars

› mandatory as of Oct. 2014 for all new passenger cars9

› Advanced emergency braking system and lane departure warning

› expected to be mandatory for all new heavy commercial vehicles and buses following the EU decision10

Japan

1 Regulation (EC) No. 661/2009; refers to all vehicles of category M and N.2

Commission Implementation Regulations for (EC) No. 661/2009: 347/2012 (Advanced Emergency Braking Systems); 351/2012 (Lane Departure Warning).3

Regulation (EC) No. 78/2009; refers to passenger cars for maximum 8 passengers plus driver.4

COM(2010) 542 from Oct. 2010. ABS mandatory for motorcycles with engine capacity of >125 ccm. ABS or combined brake system (CBS) mandatory for engine capacity

of ≤125 ccm.5

Federal Motor Vehicle Safety Standard (FMVSS) No. 126 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t.6

Federal Motor Vehicle Safety Standard (FMVSS) No. 138 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 7

CONTRAN 312/2009.8

Russia Decree 720/2009; refers to passenger cars, buses with a weight of ≤5 t and light trucks with a weight of ≤3.5 t.9

Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan.10

Japan expected to adopt EU regulation. Final decision on timing pending.11

G/TBT/N/KOR/286 and MLTM Notification 2010-631 (Ministry of Land, Transport and Maritime Affairs).


› mandatory as of Jan. 2012 for all new light vehicles11


› mandatory as of Jan. 2013 for all new passenger cars11

Brazil

› Anti-lock brake system (ABS)

› mandatory as of Jan. 2014 for all new passenger cars, after phase-in which began in 20107

South KoreaRussia


› mandatory as of Jan. 2014 for all new types of light vehicles

› mandatory as of Jan. 2016 for all new light vehicles8


› mandatory as of Jan. 2016 for all new types of light vehicles8

Other emerging markets likely to follow EU/USA on ESC regulation


Region of

the Americas

African

Region

Eastern

Mediterranean

Region

South-East

Asia Region

Western

Pacific Region

European

Region

14.0

III. Continental Megatrend: SafetyRoad Traffic Deaths per 100,000 Inhabitants by Region1

35

2009 2013

32.1

24.6

2009 2013

2009 2013

32.0

21.3

2009 2013

16.618.7

15.6

18.3

2009 2013

2009 2013

13.3

10.3Total road traffic deaths 20131: 1.24 mn

16.1

Source: Global Status Report on Road Safety, World Health Organization (WHO) 2009 and 2013.1

Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality.

III. Continental Megatrend: SafetyGlobal Development of Active Safety Regulations & Ratings

36

ESC = Electronic Stability Control; FCWS = Forward Collision Warning System; LDWS = Lane Departure Warning System;AEBS = Advanced Emergency Braking

System; CIBS = Crash Imminent Braking System

NCAP = New Car Assessment Program; EC = European Commission; NHTSA = National Highway Traffic Safety Administration (USA); MLIT = Ministry of Land,

Infrastructure, Transport and Tourism (Japan); MLTM = Ministry of Land, Transport and Marine Affairs (South Korea)

decided

expected

by

Continental

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

AEB/LDWS

2013Heavy commercial

vehicles & buses >8 metric tons

AEB/LDWS

2014Heavy commercial

vehicles

Regula

tion

NC

AP

Regula

tion

NC

AP

ESC

2008Light vehicles

ESC

2011Passenger vehicles

ESC

2012Passenger

vehicles

FCW and/or CIBLight vehicles

AEB/LDWSPassenger vehicles

FCW/LDWS

2011NCAP listing

AEB/LDWS

2014NCAP star-rating

AEB/LDWSNCAP star-rating


› Adult Occupant Protection

› Frontal impact

› Car to car side impact

› Pole side impact

› Whiplash

III. Continental Megatrend: SafetyEuro NCAP 5 Star Rating Requirements

37

› Pedestrian Protection› Child Occupant Protection

› Safety Assist

› Electronic Stability

Control

› Seat belt reminders

› Speed assistance

System

› Traffic Sign Recognition will be included in the rating scheme

by 2016 at the latest

› Starting 2014, autonomous emergency braking systems are

included in the rating scheme. They are tested in three

categories

› Pedestrian AEB› Interurban AEB› Urban AEB

Sources: Homepage Euro NCAP and AutoMotorSport – “Sind unsere Autos wirklich sicher” – July 11, 2012.

Testing categories

Full system or parts are produced by Continental

III. Continental Megatrend: SafetyHistory and roadmap for Accident-Free Driving

38

Partially Automated (2016) – Highly Automated (2020) – Fully Automated (> 2025)

AEB City

< 50 kphParking

Assist

Automated Parking

AEB

> 60 kph

Driver

Distraction

Highway Assist

Stop&Go, Cruising, 0-130km/h

Construction Site

(highly automated)

City

Stop&Go

Highway

(highly automated)

Remote

parking

Construction Site Assist

2015 – 2016:

• ACC

longitudinal/lateral

• Traffic Jam Assistant

(highway)

• Lateral Collision

Avoidance

• Emergency Steering

Assistant

AEB

Pedestrian

Inter-Urban

Autonomous Driving

2015 2020 > 2025

AEB = Automatic Emergency Brake

ACC = Adaptive Cruise Control


III. Continental Megatrend: SafetyFuture Automotive Trends

39

III. Continental Megatrend: SafetyFuture Automotive Trends Require System Competence

40

Continental spent more than €100 mn in R&D for advanced driver assistance systems and

automated driving. More than 1,300 engineers are working intensively on these topics.!

Environment Vehicle

Driver

Radar

Camera

Laser

Ultrasonic sensors

Digital maps

Cooperative cars

Motor

Brake

Sensors

E/E architecture/bus

Transmission

Actuators

Attention management Interior camera Speech recognitionAugmented reality

head-up display

Backend

= Continental portfolio


III. Continental Megatrend: SafetyWorld Market Forecast1 for Driver Assistance Systems

41

World Market for

Driver Assistance Systems (USD bn)

Products of Continental’s ADAS business unit

Products of other Continental business units

1 Source: Strategy Analytics, November 2013.2 System as defined by Strategy Analytics incl. wiring, connectors, displays etc.

6.0

18.8

2.5

5.6

9.5

2013 2016 2020

Market acc. Strategy Analytics

ADAS market (BS, DW, LDW)

12.2

Selected

System

System

Definition2

Blindspot (BS)

Covers the blindspot between coverage offered by

the central rear view mirror and the door-mounted

mirrors

Distance Warning

(DW)

Covers all distance warning systems that form the

basis of either intelligent cruise control or collision

avoidance systems

Lane Departure

Warnings (LDWS)

Warns the driver if (s)he may be unintentionally

driving out of the desired lane

Drowsiness

Monitor

Warns the driver that (s)he has either fallen

asleep, or is in danger of doing so

E-Call TelematicsAutomatically transmits an emergency call in case

of an accident

Head-Up Display

(HuD)

Displays most important driver information in the

windshield of the vehicle

Parking /

Reversing

Uses Ultrasonic and Radar Sensors as well as

camera based parking aids

Night VisionImproves driver’s night vision by using any form of

imaging system (normally viewed on a HuD)

III. Continental Megatrend: SafetyWinter Tire Regulation1

42

Austria

Estonia

Finland

Germany

Europe: Winter tires mandatory or situationally mandatory

Latvia

Lithuania

Romania

Sweden

Slovakia

Slovenia

November 1 to April 15 when

winter weather conditions prevail

December 1 to end of February



November 1 to April 1

December 1 to March 31 when


Mandatory when winter weather

conditions prevail November 1 to March 31

November 15 to March 15 when


The snowflake symbol: This symbol can be displayed on a tire if it tests better than a reference standard tire

with M+S² marking when ABS-braking on snow.


roads are snowy/icy

Norway

Mandatory when winter

weather conditions prevail

Europe: Winter tires partly mandatory

Czech Republic

November 1 to March 31

France

Mandatory on certain roads – marked with signs

Italy Switzerland

Drivers may be held liable if they cause an accident with

summer tires mounted when winter weather conditions prevail

Canada: Winter tires partly mandatory

1Source: Continental AG and websites of country ministries, automobile associations and ETRMA (European Tyre and Rubber Manufacturers' Association).

2Mud + snow. The M+S marking is given by the manufacturer and is not linked to a performance definition.

Mandatory in Québec December 15 to March 15;

mandatory on certain roads in the mountains of Canada when winter weather conditions prevailCanada

Turkey

December 1 to April 1 for

commercially used vehicles

Bosnia and Herzegovina

November 15 to April 15 when


Luxembourg



Macedonia



Serbia


Russia


weather conditions prevail Iceland


Spain

Bulgaria



Ukraine

November 1 to March 31


http://en.wikipedia.org/wiki/File:Flag_of_Turkey.svg

http://en.wikipedia.org/wiki/File:Flag_of_Turkey.svg

http://en.wikipedia.org/wiki/Flag_of_Bosnia_and_Herzegovina

http://en.wikipedia.org/wiki/Flag_of_Bosnia_and_Herzegovina

http://en.wikipedia.org/wiki/Flag_of_Luxembourg

http://en.wikipedia.org/wiki/Flag_of_Luxembourg

http://en.wikipedia.org/wiki/Flag_of_the_Republic_of_Macedonia

http://en.wikipedia.org/wiki/Flag_of_the_Republic_of_Macedonia

http://en.wikipedia.org/wiki/Flag_of_Serbia

http://en.wikipedia.org/wiki/Flag_of_Serbia

http://en.wikipedia.org/wiki/Flag_of_Russia

http://en.wikipedia.org/wiki/Flag_of_Russia

III. Continental Megatrend: Safety and EnvironmentTire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil1

43

1Similar initiatives in Australia, China, Gulf countries, Israel, South Africa.

2Regulation (EC) No.1222/2009 of the European Parliament and of the

Council and Commission Regulations (EU) No. 228/2011 and (EU)

No.1235/2011. Also implemented in Norway, Switzerland and Turkey.

› Mandatory as of

November 2012

› Applies to all tires sold.

Information to be shown:

rolling resistance

(fuel efficiency),

wet grip

(braking performance on

wet roads) and

noise performance

(external rolling noise).

Either directly on the tire

by means of a label or in

some other way

› Self-certification policy

› EU member states are

responsible for market

surveillance

› Final decision pending

› The NHTSA Tire Fuel

Efficiency Consumer

Information Program

proposes to inform

consumers about the

effect of tires on fuel

efficiency, safety,

and durability

› The program aims to

implement a national

tire fuel efficiency

rating system for

replacement tires, with

the information

provided to consumers

at the point of sale and

online

Label proposed by NHTSA3

› Voluntary since 2010

› Introduced by JATMA4

› Applies to replacement

summer tires for

passenger cars;

includes information on

rolling resistance and

wet grip performance

› Tires with a grading of A

and above for rolling

resistance performance

are defined as “fuel

efficient tires” and are

marked with an

additional symbol (the

lower of the symbols

above)

› Mandatory as of

November 2012

› Introduced by MKE5

› Applies to all tires sold in

South Korea (OE and

replacement) for

passenger cars and light

trucks; includes

information on rolling

resistance and wet grip

performance

› The label has to be

attached to the tread of

each tire; for OE tires the

information has to be

provided in the car

manual

› Registration of all

products required

EU2 USA3 Japan4 South Korea5 Brazil6

› Available as of April 2015

› Mandatory as of

October 2016

› Introduced by INMETRO6

› Applies to all tires sold

(with certain exceptions).

Includes information on

rolling resistance, wet

grip and noise

performance

› Certification to be carried

out by a product

certification body

accredited by INMETRO

3 Source: National Highway Traffic Safety Administration (NHTSA).

4Source: Japan Automobile Tyre Manufacturers Association (JATMA).

5 Source: South Korean Ministry of Knowledge Economy (MKE).

6 Source: National Institute of Metrology, Quality and Technology (INMETRO).

III. ContinentalTires: Key Initiatives 2001 – Vision 2025

44

Create Value

› Global footprint and business optimized

› Strong cost focus

› Global presence of CVT sustained (SAM/APAC)

› Turnaround of PLT business in NAFTA succeeded

› Worldwide technology gap to competition closed

Stage 1: 2001 – 2010

Sustain Value

› Accelerate global growth (focus on BRIC countries)

› Leverage cost position

› Improve technology position to establish among “Best In Class”

Stage 2: 2011 – 2015 Stage 3: 2016 – 2025

Continuous value creation is our driving force!

Enhance Value

› Balanced global footprint

› Benefit from excellent cost position

› Achieve podium position in technology worldwide


III. ContinentalTires Sales and Growth Pillars – Supporting Elements of our Vision 2025

45

Commercial Segment

› Selective growth in commercial specialty tires

› Support end customer focus with strong service providers

Consumer Segment (2 Wheel)

› Capacity increase (i.e. existing plants, greenfields, M&A)

› Expansion of worldwide presence by eliminating white spots

› Establish new channel of direct sales to retail level

Specialty Tires

› Ramp up greenfields

› Continuously invest in R&D and technology

› Expand retail position

› Manage brand awareness via communication roadmap

Passenger & Light Truck Tires

› Accelerate growth onextended lifecycle solutions

› Expand retail position

› Provide a strong manufacturing footprint in BRIC

Truck Tires

III. ContinentalAdditional Tire Production Capacity of 26 mn Units by 2017/18

46

Mount Vernon

(US)

Sumter

(US)

+4

+4

+4

Camaçari

(BRA)

+4

+7

Kaluga

(RU)

Hefei

(CN)+0.4

Modipuram

(IN)

+1.3

+0.3

(mn units)

Passenger tires

Truck tires

Otrokovice(CZ)

Puchov(SK)

+0.8

+0.5


III. ContinentalTires Vision 2025 – Towards a more Balanced Footprint

47

Passenger & Light Truck Tires1 Truck Tires1 Specialty – Commercial2

Specialty – Consumer2

EMEAAPACThe Americas1

Based on unit sales.2

Based on net sales.

Note:

Inner circle as of 2012.

Outer circle vision 2025.

2025

2025

2025 2025

5%

74%

21%

46%

4%

50%

7%

72%

21%

3%

16%

81%

III. Continental Megatrend: EnvironmentContiTech: Engineering Green Value

48

Health-friendlyinteriors1

Lightweight engineering1

Perfect mount for wind power

Eco-friendly drive belts1

Climate-friendlyconveyor belts

Emissions-reducing hoses1

1Technologies also supplied to the automotive industry.

Flexible insulationfor energy saving1

Components for

engine downsizing1

Timing Belts Drive System for two-wheeler

Carbon-neutral printing blankets

Secure wave power

Modules for efficient solar energy

Engineering Green Value: Maxim for our strategic orientation

› Technological expertise for customer-specific solutions made from rubber and plastic

› Sustainable management with long-sighted economic, ecological and social solutions

› Creating added value for our customers, human beings and the environment


2012 2017

Fluid Technology Vibration Control

Conveyor Belt Group Power Transmission Group

Air Spring Systems Compounding Technology

Elastomer Coatings Benecke-Kaliko Group

∑~€25 bn

∑~€30 bn

III. Continental Megatrend: EnvironmentContiTech: Cumulative Market for ContiTech Products

49Source: Continental estimates.

50

Topics





Market DataV. 60





GlossaryX. 151


IV. Continental CorporationKey Consolidated Figures

51

(in mn €) 2011 20125 20135

Sales 30,504.9 32,736.2 33,331.0

EBITDA 4,228.0 4,967.4 5,095.0

in % of sales 13.9 15.2 15.3

EBIT 2,596.9 3,186.2 3,263.7

in % of sales 8.5 9.7 9.8

EBIT adjusted1 3,611.5 3,736.5

in % of sales1 11.0 11.3

Operating assets (average) 16,019.0 16,953.8 16,804.0

ROCE (average) in % 16.2 18.8 19.4

R, D & E expense 1,608.7 1,744.8 1,878.4

in % of sales 5.3 5.3 5.6

Capex2 1,711.3 2,019.4 1,981.1

in % of sales 5.6 6.2 5.9

Depreciation & amortization3 1,631.1 1,781.2 1,831.3

in % of sales 5.3 5.4 5.5

thereof impairment4 20.4 49.9 126.7

1

EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2

Capital expenditure on property, plant and equipment, and software.3

Excluding write-downs of investments.4

Impairment also includes necessary reversals of impairment losses.5


IV. Continental CorporationSales and Adjusted EBIT1 by Quarter

52

7,346 7,533 7,714 7,9128,320 8,187 8,134 8,096 8,033

8,541 8,350 8,407

889966

854 902796

9811,017 942

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13

Sales (mn €) Adj. EBIT (mn €)

FY Sales €30,505 mn

1Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013.


Adj. EBIT1 €3,737 mn

1


Adj. EBIT1 €3,612 mn


IV. Continental CorporationKey Historical Financials and Credit Metrics - IAS 19 (rev. 2011) applied6

53

1Amounts shown may contain rounding differences.

2Adjusted EBITDA from 2009 on as defined in syndicated loan but IAS 19 (rev. 2011) not applied in 2012.

3Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes.

4Includes dividends received, income from at-equity accounted and other investments incl. impairments, gains and losses from

disposals, other non-cash items as well as changes in pension and similar obligations (including effects from transactions regarding

contractual trust arrangements [CTA] in 2009) and in other assets and liabilities.5

Adj. EBITDA to net cash interest paid.6

For 2012 & 2013 only.

(mn €)1

2008 2009 2010 2011 2012 2013

Cash Flow Statement

Adjusted EBITDA2

3,001 2,354 3,662 4,247 4,822 5,094

Reported EBITDA 2,771 1,591 3,588 4,228 4,967 5,095

Net cash interest paid -519 -727 -703 -662 -575 -534

Tax paid -282 -205 -493 -466 -684 -805

Change in net working capital3

275 595 -497 -556 564 -4

Other 4

-360 1,173 -46 -256 -488 -30

Cash flow arising from operating activities 1,885 2,427 1,849 2,289 3,785 3,722

Cash flow arising from investing activities -1,256 -787 -1,282 -1,798 -2,132 -1,904

- thereof capex in PPE and intangibles -1,621 -911 -1,324 -1,813 -2,081 -2,024

Cash flow before financing activities 629 1,640 567 491 1,653 1,818

Balance Sheet

Cash and cash equivalents 1,569 1,713 1,471 1,541 2,397 2,045

Derivative instruments and interest-bearing investments 64 104 202 249 536 303

Total indebtedness 12,117 10,713 8,991 8,562 8,253 6,638

Net Indebtedness 10,484 8,896 7,317 6,772 5,320 4,289

Credit Ratios

Net indebtedness / adj. EBITDA2

3.5x 3.8x 2.0x 1.6x 1.1x 0.8x

Net cash interest paid coverage (Ratio)5

5.8x 3.2x 5.2x 6.4x 8.4x 9.5x

IV. Continental CorporationDevelopment of Net Indebtedness and Gearing Ratio

54

7,6

05

7,1

14

7,2

97

6,7

72

6,8

41

6,8

76

6,8

02

5,3

20

5,6

13

6,0

12

5,5

90

4,2

89

117%

104% 103%

90%85% 83%

78%

58%

91% 88% 87%

65% 64%69%

62%

46%

Q1 H1 9M YE Q1 H1 9M YE Q1 H1 9M YE

2011 2012 2013

Net indebtedness (mn €) Gearing ratio (%) Gearing ratio (%) applying IAS 19 (rev. 2011)


IV. Continental CorporationGross Indebtedness by Source

55

1Term loan and revolving facility repayment in Jan. 2016 / Jan. 2018; no amounts drawn under the revolving credit facility (RCF) as at Dec. 31, 2013. RCF has a

total volume of €3,000 mn. 2

Nominal amount $950 mn (exchange rate at Dec. 31, 2013: 1.3764).

Note: Bond values and the values for the syndicated loan are nominal values, all others book values.

FY 2009Gross indebtedness: €10,713 mn

(thereof 86% in syndicated loan)

FY 2013Gross indebtedness: €6,638 mn

(thereof 22% in syndicated loan)

1

2

Syndicated loan Bonds Various other bank lines Other indebtedness

Term loan Jan. 2016

1,500

Bond Mar. 2017 (2.5%)

750

Bond Jul. 2018 (3.0%)

750 Bond Sept. 2019 (4.5%)

690

Bond Sept. 2020

(3.125%)750

Bond Aug. 2025 (3.9%)

50

Various other bank lines

651

Other indebtedness

1,497 Syndicated loan

(Tranche B) Aug. 2010

3,500

Syndicated loan

(Tranche C) Aug. 2012

5,000

Syndicated loan

(Tranche D Revolver) Aug. 2012

696

Various other bank lines

900

Other indebtness

616

Gross

indebtedness:

€10,713 mn

Gross

indebtedness:

€6,638 mn

IV. Continental CorporationMaturities1 for Gross Indebtedness (mn €)

56

750 750 690 750

1,500

470 67

60

4726498

629

288

2014 2015 2016 2017 2018 2019 2020

1Maturities later than 2018 are bond maturities only; all bond and syndicated loan amounts shown are nominal values; maturities do not add up to gross indebtedness

amounting to €6,637.5 mn as at Dec. 31, 2013; CP = Commercial Paper; SoR = Sales of receivables (€916.2 mn total amount as at Dec. 31, 2013).2

No amounts drawn under the revolving credit facility (RCF) as at Dec. 31, 2013. RCF has a total volume of €3,000 mn.3

Nominal amount $950 mn (exchange rate as at Dec. 31, 2013: 1.3764).

Syndicated Loan

Bonds

3

As at December 31, 2013

CP

SoR

Others

∑1,596 ∑1,560

∑1,085

∑776

(mn €) FY 12 FY 13

Gross indebtedness 8,253 6,638

Cash 2,397 2,045

Net indebtedness 5,320 4,289

Available credit lines 2,801 3,833

Total liquidity 5,199 5,878


IV. Continental CorporationPurchasing – Production Materials 2013

57

Oil Based Chemicals

14%

Electronics22%

Electro-mechanical components

18%

Mechanical components

26%

Others15%

Natural Rubber

5%Purchasing Contracts

› Continental has a wide range of sources

for production materials worldwide.

› A specific strategy for each production

material group is set up and the

appropriate supplier panel is selected.

This way we ensure the competitiveness

and availability of the materials.

› For some materials, like certain oil based

chemicals or natural rubber, prices might

have a long lead time until they become

fully reflected in the cost of our final

products.

Total production material

purchased in 2013:

€15.8 bn

1E.g. synthetic rubber, carbon black.

2E.g. printed circuit boards, connectors, motors.

3E.g. stamped parts, turn parts, castings.

4E.g. textiles, plastics.

1

2

3

4

IV. Continental CorporationDevelopment of Raw Material Prices

58

Sources:

Natural Rubber: Rolling 1-month contracts from the Rubber Trade Association (€ cents per kg).

Crude Oil: Europe Brent Forties Oseberg Ekofisk price from Bloomberg (U.S. $ per metric ton).

Butadiene: Western Europe spot price from IHS (U.S. $ per metric ton).

Styrene: South Korea export price (FOB) from Polymerupdate.com (U.S. $ per metric ton).

0%

50%

100%

150%

200%

250%

300%

350%

Natural Rubber TSR 20 Natural Rubber RSS3

Crude oil Butadiene Styrene

based on January 1, 2008

2008 2009 2010 2011 2012 2013


59

Topics





Market DataV. 60





GlossaryX. 151

V. Market DataIncreasing Installation Rates of Electronic Brake Systems

60

ABS/TCS ESC Total EBS

Source: Continental estimates.

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018

Europe North America

Japan China


V. Market DataInstallation Rates of Fuel Injection Systems1

61

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018

Gasoline direct injection Gasoline port fuel injection Diesel injection


Japan China

Source: Continental estimates.1 Based on production of diesel and gasoline engines for passenger cars & light vehicles.

V. Market DataDevelopment of Transmissions Technologies1

62

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018

Double clutch transmissionAutomated manual transmission

Continuous variable transmission

Automatic transmission

Manual transmission Electric variable transmission


Japan China

Source: Continental estimates.1 Based on production of transmissions for passenger cars and light vehicles.


V. Market DataIncreasing Installation Rates of Turbocharger in Gasoline Engines

63

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017 2018

Europe North/Middle America Asia China

Source: IHS 01/2014.

V. Market DataIncreasing Installation Rates of Keyless Entry Systems

64ABS/TCS ESC

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


Japan China



V. Market DataIncreasing Installation Rates of Multimedia Systems1

65

Audio Navigation

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018

Source: Continental estimates.1 “Audio” means only stand-alone Radios and “Navigation” means embedded Navigation in the car, not connected navigation where e.g. a smartphone

delivers Navigation calculation and the screen of the car is used as a display.


Japan China

V. Market DataIncreasing Installation Rates of Advanced Driver Assistance Systems1

66Source: Continental estimates.1

Market Definition: Average amount of ADAS sensors per car without parking assist functions based on ultrasonic sensors and sensing rear view cameras.

Example: 2013 Europe – Total amount of produced cars: 19.0 mn Average sensors per car: 0.24 19,000,000*0.24 = 4,560,000 sensors.

0.00

0.25

0.50

0.75

1.00

1.25

2011 2012 2013 2014 2015 2016 2017 2018

Europe NAFTA Asia Rest of world World wide

Sensors per car


V. Market DataIncreasing Installation Rates of Head-Up Displays

67

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015 2016 2017 2018

Europe North America Japan China

(in thousand units)


V. Market DataProduction of Light Vehicles 2011 - 2014

68

(in mn units) 2011 20121 20131 20141

Europe2 20.2 19.3 19.3 19.5

NAFTA 13.1 15.4 16.2 16.7

South America 4.3 4.3 4.5 4.3

Asia 36.8 40.6 42.3 43.8

Other markets 2.5 1.9 1.7 1.7

Total 76.9 81.5 84.0 86.0

Source: IHS and Continental estimates.1

Estimates for passenger cars and light trucks < 6 tons (including vans).2

West, Central and East incl. Russia and Turkey.


V. Market DataProduction of Heavy Vehicles 2011 - 2014

69

(in thousand units) 2011 20121 20131 20141

Europe2 632 581 580 574

NAFTA 452 487 477 510

South America 279 183 256 246

Asia 2,004 1,832 1,928 1,967

Other markets 3 3 3 3

Total 3,370 3,086 3,244 3,300

Source: IHS and Continental estimates.1

Estimates for trucks > 6 tons.2

West, Central and East incl. Russia and Turkey.

V. Market DataReplacement Passenger, Light Truck and 4x4 Tires 2011 - 2014

70

(in mn units) 2011 20121 20131 20141

Europe2 343 312 310 316

NAFTA 258 254 264 269

South America 58 59 63 66

Asia 266 277 294 313

Other markets 102 107 112 112

Total 1,027 1,009 1,043 1,076

Source: LMC World Tyre Forecast Service and Continental estimates.1

Estimates.2

West, Central and East incl. Turkey and Russia.


V. Market DataReplacement Truck Tires 2011 - 2014

71

(in mn units) 2011 20121 20131 20141

Europe2 23.8 20.9 22.8 23.5

NAFTA 20.7 20.0 19.7 20.1

South America 13.0 12.5 13.3 13.8

Asia 65.7 67.3 71.0 73.9

Other markets 16.5 17.2 18.4 19.0

Total 139.7 137.9 145.2 150.3

Source: LMC World Tyre Forecast Service and Continental estimates.1

Estimates. 2

West, Central and East incl. Turkey and Russia.

72

Topics





Market DataV. 60





GlossaryX. 151


VI. Automotive GroupKey Figures

(in mn €) 2011 20125 20135

Sales 18,354.2 19,505.1 20,016.1

EBITDA 2,225.8 2,470.3 2,490.5

in % of sales 12.1 12.7 12.4

EBIT 1,024.5 1,134.5 1,158.9

in % of sales 5.6 5.8 5.8


in % of sales1 8.2 8.0


ROCE (average) in % 9.0 9.9 10.6

R, D & E expense 1,367.5 1,475.3 1,589.1

in % of sales 7.5 7.6 7.9

Capex2 968.5 1,035.9 1,015.5

in % of sales 5.3 5.3 5.1

Depreciation & amortization3 1,201.3 1,335.8 1,331.6

in % of sales 6.5 6.8 6.7


1





IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly. 73

VI. Automotive GroupSales and Adjusted EBIT1 by Division

74

690

318

585 0 1,593

Chassis & Safety

Powertrain Interior cons. AutomotiveGroup

Adj. EBIT margin (%)

9.5%

5.1%

8.9%

8.0%7,269

6,260

6,606

11920,016

Chassis & Safety

Powertrain Interior cons. AutomotiveGroup

Organic growth (%)

3.4%

6.0% 5.4%

6.7%

Automotive Group Sales (mn €) 2013 Automotive Group Adj. EBIT1 (mn €) 2013

-

1

1Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011).


VI. Automotive GroupSales by Markets

75

Germany31%


28%

NAFTA18%

Asia18%

Other countries

5%

Germany28%


26%

NAFTA20%

Asia22%

Other countries

4%

Germany26%


23%

NAFTA23%

Asia25%

Other countries

3%

Sales in 2011: €18.4 bn Sales in 2013: €20.0 bnSales in 2009: €12.0 bn

VI. Automotive GroupOrder Intake (LTS1) in the Automotive Group €25 bn in 2013

76

1Life-time sales

Chassis & Safety Powertrain Interior

› Order intake totaled almost

€8 bn due to reorganization of

the division

› Book-to-bill 1.1x

› ADAS with best book-to-bill

ratio

› Order intake increased for the

5th year in a row to €9.4 bn in

2013

› Book-to-bill stayed 1.5x

› Order intake up to €8.3 bn

› Book-to-bill remained at 1.3x

Order intake Powertrain 2011 - 2013 Order intake Interior 2011 - 2013Order intake Chassis & Safety 2011 - 2013

7.4

8.27.9

1.1 1.2 1.1

2011 2012 2013

LTS (bn €) Book-to-bill

8.1

9.19.4

1.4 1.5 1.5

2011 2012 2013


7.4

8.2 8.3

1.2 1.3 1.3

2011 2012 2013



77

Topics





Market DataV. 60

Automotive Group – Chassis & Safety DivisionVI. 78




GlossaryX. 151

VI. Chassis & SafetyBusiness Units and Key Products

78

Vehicle DynamicsHydraulicBrake Systems

Passive Safety & Sensorics

Advanced Driver Assistance Systems

› Integrated vehicle safety

development, safety testing &

validation

› Airbag control units / safety

(domain) control units

› Crash sensors

› Inertial measurement units

› Chassis and driver intention

sensors

› Battery and energy

monitoring sensors

› Electronic components

(1st tier customer)

› Wheel, engine and

transmission speed sensors

› Accelerator Force Feedback

Pedal (AFFP®)

› V2X systems

› Functions

› Adaptive cruise control

› Emergency brake assist

› Lane departure warning

› Lane keeping support

› Blind spot detection

› Traffic sign assist

› Intelligent head lamp

control

› Rear cross traffic alert

› Surround View

› Sensors

› Radar

› Camera

› Lidar

› Hydraulic Electronic

Control Units (HECU)

› ABS

› ESC

› Software functions

› Traction control

› Adaptive cruise control

› Regenerative brake system

› Active front steering

› Hill start assist

› Hydraulic brake assist

› Trailer stability assist

› Chassis electronics

› Suspension systems

› Calipers and discs

› Drum brakes

› Brake hoses

› Boosters

› Tandem master cylinders

› Electric parking brakes

› Pedal modules

› Brake pressure regulators

› Washer systems


http://www.conti-online.com/generator/www/de/de/continental/automotive/themes/passenger_cars/chassis_safety/passive_safety_sensorics/speed_sensors/wheel_speed_sensors_de.html

http://www.conti-online.com/generator/www/de/de/continental/automotive/themes/passenger_cars/chassis_safety/passive_safety_sensorics/speed_sensors/wheel_speed_sensors_de.html

VI. Chassis & SafetyLocations Worldwide

79

India▐ Bangalore▐ Gurgaon

(New Delhi)▐ Manesar

Brazil▐ Salto▐ Varzea Paulista

China ▐ Shanghai▐ Jiading TC▐ Jiading CASS▐ Changchun I▐ Changchun II▐ Changshu▐ Heihe▐ Lian Yun Gang

Mexico▐ Ayala Morelos (Cuautla)▐ Guadalajara▐ Las Colinas▐ Silao

USA ▐ Auburn Hills▐ Brimley▐ Culpeper▐ Henderson▐ Morganton▐ Seguin

Malaysia▐ Penang

Japan▐ Asahi▐ Hamakita▐ Monbetsu▐ Yokohama

South Korea▐ Sejong▐ Icheon▐ Seoul

Philippines▐ Calamba▐ Manila

▐ Lindau

▐ Nuremberg

▐ Regensburg

▐ Rheinböllen

▐ Schwalbach

▐ Ulm

Europe France▐ Boussens

▐ Toulouse

Hungary▐ Budapest

▐ Veszprém

Italy▐ Cairo Montenotte

Belgium▐ Mechelen

Czech Republic▐ Adrspach

▐ Frenstat

▐ Jicin

Portugal▐ Palmela

Romania▐ Iasi

▐ Sibiu

▐ Timişoara

Slovakia▐ Zvolen

Sweden▐ Arvidsjaur

UK▐ Ebbw Vale

▐ Lewes

▐ Production / R&D

Germany ▐ Alzenau

▐ Bebra

▐ Dortmund

▐ Frankfurt

▐ Gifhorn

▐ Hanover

▐ Ingolstadt

▐ Karben

▐ Korbach

▐ Joint Ventures < 50%

66 sites for production and R&D in 20 countries. Divisional headquarter in Frankfurt/Main, Germany.

▐ Jiading SABS

VI. Chassis & SafetyKey Figures

80

(in mn €) 2011 20125 20135

Sales 6,510.8 7,052.5 7,269.2

EBITDA 982.3 1,007.9 990.2

in % of sales 15.1 14.3 13.6

EBIT 661.9 672.7 598.9

in % of sales 10.2 9.5 8.2

EBIT adjusted1 721.0 689.8

in % of sales1 10.2 9.5


ROCE (average) in % 16.4 16.4 14.9

R, D & E expense 463.1 500.2 535.3

in % of sales 7.1 7.1 7.4

Capex2 327.1 383.8 401.7

in % of sales 5.0 5.4 5.5

Depreciation & amortization3 320.4 335.2 391.3

in % of sales 4.9 4.8 5.4

thereof impairment4 1.6 -2.0 41.4

1







VI. Chassis & SafetySales by Markets

81

Germany35%


26%

NAFTA16%

Asia20%

Other countries

3%

Germany29%


23%

NAFTA19%

Asia25%

Other countries

4%

Germany26%


20%

NAFTA22%

Asia29%

Other countries

3%


VI. Chassis & SafetyMarket Position for Electronic Brake Systems 2013

82Source: Continental estimates.

Europe

North America

South America

Asia/Pacific

World

Continental

Bosch

TRW

Continental

Bosch

TRW

Continental

Bosch

TRW

Continental

Advics

Bosch

Continental

Advics

Bosch

Market share of all suppliers other than top 3

All others

All others

All others

All others

All others


VI. Chassis & SafetyMarket Position for Foundation Brake Systems 2013

83

Europe

North America

South America

Asia/Pacific

World

Continental

CBI

TRW

Continental

Akebono

TRW

Continental

CBI

TRW

Continental

Advics

Mando

Continental

Akebono

TRW


All others

All others

All others

All others

All others


VI. Chassis & SafetyMarket Position for Actuation 2013

84

Europe

North America

South America

Asia/Pacific

World

Continental

Bosch

TRW

Continental

Bosch

TRW

Continental

Bosch

TRW

Continental

Advics

Bosch

Continental

Bosch

TRW


All others

All others

All others

All others

All others



VI. Chassis & SafetyMarket Position for Airbag Electronics 2013

85

Europe

North America

South America

Asia/Pacific

World

Continental

Autoliv

Bosch

Continental

Autoliv

TRW

Continental

Autoliv

TRW

Continental

Bosch

Denso

Continental

Autoliv

Bosch


All others

All others

All others

All others

All others


VI. Chassis & SafetyMarket Position for Advanced Driver Assistance Systems 2013

86

Europe

North America

Asia/Pacific

World

Continental

Bosch

Delphi

Continental

Autoliv

Delphi

Continental

Denso

Hella

Continental

Delphi

Denso


All others

All others

All others

All others



VI. Chassis & SafetyGrowing Sales Volume for Electronic Brake Systems

87

Model Selection

Europe› Audi A3

› BMW 1 Series / 3 Series

› Ford Focus / Fiesta

› Mercedes C Class

› Opel Astra / Zafira

› Peugeot 208 / C3

› Renault Megane / Scenic

› Skoda Octavia

› Toyota Yaris

› Volvo S60/V40/XC60

› VW Golf / Passat

NAFTA› BMW X3/X4

› Chevrolet Cruze/Equinox/Colorado

› Chrysler Caliber Succ

› Dodge RAM 1500

› Ford Explorer/Escape/Focus/Fusion

› Honda Odyssey

› Jeep Wrangler

› VW Jetta/New Beetle/New Passat

Asia› Ford Ecosport / Focus /Fiesta Succ.

› GM Cruze

› Honda Civic / N-Box / N-One

› Mazda Axela / CX-5 / Demio

› PSA 208 / C-Elysee

› Skoda Octavia

› Suzuki Wagon R / Spacia / Swift

› Mitsubishi Lancer / Outlander / RVR

› VW Lavida / Bora / Passat / Sagitar

0

5

10

15

20

25

30

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

ESC

ABS/TCS

(in mn units, without motorcycle)


88

Topics





Market DataV. 60

Automotive Group – Powertrain DivisionVI. 89




GlossaryX. 151


VI. PowertrainBusiness Units and Key Products

89

› Control units for

› Automatic

transmission

› Double clutch

transmission

› Automated manual

transmission

› Continuously

variable

transmission

› Control units for 4x4

and AWD applications

› Transfer cases

› Differentials

› Clutch systems

TransmissionEngine Systems Fuel Supply

Sensors &

Actuators

Hybrid Electric

Vehicle

› Engine Management

Systems and Fuel

Components for

› Diesel Piezo Common

Rail Injection System

› Gasoline Piezo Direct

Injection

› Gasoline Solenoid

Direct Injection

› Gasoline Port

Injection

› Liquefied Petroleum

Gas (LPG) and

Compressed Natural

Gas (CNG)

› Aftertreatment

› Engine Management

Systems and After-

treatment Products for

Commercial Vehicle

Applications

› Turbochargers

› Power electronics

› Electric motors

› Battery systems

› Energy management

› Power net systems

› Actuators for

Powertrain

applications

› Components and

modules for emission

management

› Sensors for

powertrain

applications

› NOx, MAF,

transmission

sensor modules,

position

› Pressure,

temperature, knock,

cylinder pressure

› Flexible fuel, oil

quality, oil level

› Door handle sensors

› Fuel supply units

› Fuel level sensors

› Fuel pumps

› Electronics for fuel

pump control

› Modular function

carrier with activated-

carbon filter (in-tank

ventilation system)

VI. PowertrainLocations Worldwide

90

52 sites for production and R&D in 19 countries. Divisional headquarter in Regensburg, Germany.

India▐ Bangalore▐ Manesar▐ Pune

Brazil▐ Guarulhos▐ Salto

China▐ Changchun▐ Shanghai▐ Tianjin▐ Wuhu

Mexico▐ Ayala Morelos (Cuautla)▐ Guadalajara▐ Juarez

Malaysia▐ Penang

Japan▐ Yokohama

South Korea▐ Cheongwon▐ Icheon▐ Sejong

Australia▐ Bundoora

▐ Limbach-Oberfrohna/Stollberg

▐ Lohmar

▐ Nuremberg

▐ Regensburg

▐ Roding

▐ Schwalbach


▐ Foix

▐ Toulouse

Hungary▐ Budapest

Italy▐ Pisa

Czech Republic▐ Adrspach

▐ Brandys

▐ Frenstat

▐ Trutnov

Romania▐ Brasov

▐ Iasi

▐ Sibiu

▐ Timişoara

▐ Production, R&D

Germany▐ Bebra

▐ Berlin

▐ Dortmund

▐ Gifhorn

▐ Grünstadt

▐ Karben

▐ Joint Ventures ≤ 50%

Philippines▐ Calamba

Canada▐ Chatham

Thailand▐ Amata City

Russia▐ Kaluga

USA▐ Auburn Hills▐ Dearborn▐ Deer Park▐ Newport News▐ Seguin


VI. PowertrainKey Figures

(in mn €) 2011 20125 20135

Sales 5,842.0 6,134.8 6,260.3

EBITDA 484.7 609.0 650.2

in % of sales 8.3 9.9 10.4

EBIT 31.3 48.3 179.5

in % of sales 0.5 0.8 2.9





R, D & E expense 454.9 529.0 561.8

in % of sales 7.8 8.6 9.0

Capex2 393.7 395.0 360.5

in % of sales 6.7 6.4 5.8


in % of sales 7.8 9.1 7.5


1






VI. PowertrainSales by Markets

92

Germany28%


30%

NAFTA20%

Asia21%

Other countries

1%

Germany24%


33%

NAFTA21%

Asia21%

Other countries

1%

Germany22%


28%

NAFTA24%

Asia25%

Other countries

1%



VI. PowertrainMarket Position for Diesel Injection Systems1 2013

93Market share of all suppliers other than top 3

EuropeContinental

Bosch

Delphi

All others

Asia/PacificBosch

Delphi

Denso

Continental

All others

WorldContinental

Bosch

Delphi

All others

Source: Continental estimates.1

For passenger cars & light trucks.

VI. PowertrainMarket Position for Gasoline Injection Systems1 2013



Europe

North America

South America

Asia/Pacific

World

Continental

Bosch

Hitachi

Continental

Bosch

Denso

Bosch

Delphi

Magneti Marelli

Continental

Bosch

Denso

Continental

Bosch

Denso


All others

Continental

All others

All others

All others

All others


VI. PowertrainMarket Position for Transmission Control Units1 2013



Europe

North America

Asia/Pacific

World

Continental

Bosch

ZF Electronics

Continental

Bosch

Delphi

Continental

Bosch

Denso

Continental

Bosch

Denso


All others

All others

All others

All others

96

Topics





Market DataV. 60

Automotive Group – Interior DivisionVI. 97




GlossaryX. 151


VI. InteriorBusiness Units and Key Products

97

Instrumentation & Driver HMI

Infotainment & Connectivity Body & Security

Commercial Vehicles & Aftermarket

› Body control modules

› Access control systems

› Door systems

› Seat comfort systems

› Power closures

› Tire information systems

› Gateways

› Energy management

› Exterior light control units

› Intelligent antenna modules

› Tachographs, telematics and

services

› Visual and haptical HMI

› Powertrain control

› Chassis, body and

transmission electronics

› Wear parts, spare parts,

services and multi-brand

vehicle diagnostics for the

independent aftermarket

› Original equipment services

› Instrument clusters

› Secondary displays

› Head-up displays

› Climate controls

› Control panels

› Central input devices

› Cockpit modules

› Radios

› Multimedia systems

› Connectivity & telematics

› Software & solutions

VI. InteriorLocations Worldwide

98

65 sites for production and R&D in 24 countries. Divisional headquarter in Regensburg, Germany.

India▐ Bangalore▐ Manesar▐ Pune

Brazil▐ Barueri▐ Gravatai▐ Guarulhos

China▐ Changchun▐ Jinan▐ Najing▐ Shanghai▐ Tianjin▐ Wuhu

Mexico▐ Cuautla▐ Guadalajara▐ Nogales▐ Tlaquepaque

USA▐ Auburn Hills▐ Deer Park▐ Newport News▐ Seguin▐ Troy

Malaysia▐ Penang

Japan▐ Yokohama

South Korea▐ Gyeonggi-do▐ Icheon-city▐ Sejong-si

Philippines▐ Manila

▐ Markdorf

▐ Nuremberg

▐ Regensburg

▐ Schwalbach am Taunus

▐ Villingen-Schwenningen

▐ Wetzlar


▐ Foix

▐ Hambach

▐ Rambouillet

▐ Toulouse

Hungary▐ Budapest

Austria▐ Vienna

Czech Rep.▐ Adršpach

▐ Brandŷs

▐ Frenštát

Romania▐ Iasi

▐ Sibiu

▐ Timişoara

Spain▐ Rubi

Switzerland▐ Rüthi

Sweden▐ Arvidsjaur

UK▐ Birmingham

Germany▐ Babenhausen

▐ Bebra

▐ Dortmund

▐ Ingolstadt

▐ Karben

▐ Karlsruhe

▐ Resende▐ São Bernardo

do Compo

Tunesia▐ Bizerte

Singapore

▐ Singapore

Australia▐ Bundoora▐ Campbellfield

Thailand▐ Bangkok

Russia▐ Chistopol▐ Kaluga▐ Moscow


VI. InteriorKey Figures

99

(in mn €) 2011 20125 20135

Sales 6,110.7 6,434.2 6,605.7

EBITDA 758.8 853.3 850.2

in % of sales 12.4 13.3 12.9

EBIT 331.2 413.5 380.6

in % of sales 5.4 6.4 5.8





R, D & E expense 449.6 446.1 492.0

in % of sales 7.4 6.9 7.4

Capex2 247.7 257.1 253.3

in % of sales 4.1 4.0 3.8


in % of sales 7.0 6.8 7.1


1






VI. InteriorSales by Markets

100

Germany31%


28%

NAFTA20%

Asia14%

Other countries

7%

Germany31%


24%

NAFTA19%

Asia19%

Other countries

7%

Germany29%


21%

NAFTA23%

Asia21%

Other countries

6%



VI. InteriorMarket Position for Body & Security 2013

101

Europe

North America

South America

Asia/Pacific

World

Continental

Hella

Lear

Continental

Denso

Lear

Continental

Delphi

Hella

Continental

Denso

Omron

Continental

Denso

Lear


All others

All others

All others

All others

All others


VI. InteriorMarket Position for Instrumentation & Driver HMI1 2013


Excluding cockpit modules.

Europe

North America

South America

Asia/Pacific

World

Continental

JCI

Magneti Marelli

Continental

Denso

Nippon Seiki

Continental

Denso

Magneti Marelli

Continental

Denso

Nippon Seiki

Continental

Denso

Nippon Seiki


All others

All others

All others

All others

All others


VI. InteriorMarket Position for Infotainment & Connectivity 2013

103

Europe

North America

South America

Asia/Pacific

World

Continental

Alpine

Harman

Alpine

LG

Panasonic

Continental

Delphi

Panasonic

Clarion

Mobis

Panasonic

Alpine

Harman

Panasonic


Continental

All others

All others

All others

Continental

All others

Continental

All others


VI. InteriorMarket Position for Commercial Vehicle1 2013


Market shares for commercial vehicle business as described in BU structure excluding automotive aftermarket.

Europe

North America

South America

Asia/Pacific

World

Continental

Bosch

Stoneridge

Continental

Hella

Stoneridge

Continental

PST

Stoneridge

Continental

Bosch

Yazaki

Continental

Stoneridge

Yazaki


All others

All others

All others

All others

All others


105

Topics





Market DataV. 60





GlossaryX. 151

VII. Rubber GroupKey Figures

106

(in mn €) 2011 20125 20135

Sales 12,176.6 13,261.7 13,355.5

EBITDA 2,041.5 2,564.0 2,714.0

in % of sales 16.8 19.3 20.3

EBIT 1,612.8 2,120.1 2,214.8

in % of sales 13.2 16.0 16.6


in % of sales1 15.8 17.1


ROCE (average) in % 34.8 37.9 37.5

R, D & E expense 241.2 269.5 289.3

in % of sales 2.0 2.0 2.2

Capex2 747.7 981.2 964.6

in % of sales 6.1 7.4 7.2


in % of sales 3.5 3.3 3.7

thereof impairment4 -2.4 -25.1 -1.1

1







VII. Rubber GroupSales and Adjusted EBIT1 by Division

107

3,878

9,583

106

13,356

ContiTech Tires cons. Rubber Group

Organic growth (%)2.0%

1.7% 1.9%

1Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011).

Rubber Group Sales (mn €) 2013

-

1

465

1,7910

2,256

ContiTech Tires cons. Rubber Group

Adj. EBIT margin (%)12.4%

18.7% 17.1%

Rubber Group Adj. EBIT1 (mn €) 2013

VII. Rubber GroupSales by Markets

108

Germany26%


44%

NAFTA17%

Asia8%

Other countries

5%

Germany24%


43%

NAFTA18%

Asia9%

Other countries

6%

Germany21%


40%

NAFTA20%

Asia11%

Other countries

8%



109

Topics





Market DataV. 60


Rubber Group – Tires DivisionVII. 110



GlossaryX. 151

VII. TiresBusiness Units and Tire Brands

Passenger

and Light

Truck Tires

Original

Equipment

Passenger

and Light

Truck Tires

Replacement

EMEA

Passenger

and Light

Truck Tires

Replacement

The Americas

Passenger

and Light

Truck Tires

Replacement

APAC

Commercial Vehicle TiresTwo Wheel

TiresTruck Tires

EMEA

Truck Tires

The Americas

Truck Tires

APAC

Commercial

Specialty Tires

Tires for:

› Compact, medium-size and

full-size cars

› 4x4 and SUVs

› Vans, light trucks and RVs

Tires and services for

customer segments:

› Goods

› People

› Construction

Tires and

services

for the

applications:

› Material

handling

› Multi-

purpose

› Earthmover

Tires and

tubes for:

› Bicycles:

race,

mountainbike,

city/trekking

› Motorcycles:

scooters, big

bikes >150cc,

bikes <150cc

Extended

mobility

systems:

› SSR

› Minispares

› Conti

KomfortKit

› Conti

MobilityKit

› ContiSeal

NVH

engineering

services

1Except NAFTA, Colombia, Peru .

2Trademark rights for Malaysia, Singapore and Brunei.

3Only in Australia.

4Only in the People’s Republic of China.

Astrum Blue

1

4

3

2 2

110


http://www.brahlers.com/PDF/ContiTread_Brochure.pdf






VII. TiresKey Figures

(in mn €) 2011 20125 20135

Sales 8,717.7 9,665.0 9,583.2

EBITDA 1,526.5 2,005.1 2,137.7

in % of sales 17.5 20.7 22.3

EBIT 1,195.7 1,666.5 1,752.7

in % of sales 13.7 17.2 18.3


in % of sales1 17.0 18.7


ROCE (average) in % 33.6 37.6 37.7

R, D & E expense 176.1 195.1 204.7

in % of sales 2.0 2.0 2.1

Capex2 637.1 830.2 798.6

in % of sales 7.3 8.6 8.3


in % of sales 3.8 3.5 4.0

thereof impairment4 -3.2 -25.1 -1.3

1






VII. TiresSales by Markets

112

Germany18%


46%

NAFTA22%

Asia7%

Other countries

7% Germany17%


43%

NAFTA23%

Asia9%

Other countries

8%

Sales in 2011: €8.7 bn Sales in 2013: €9.6 bn


VII. Passenger and Light Truck TiresMarket Share for Passenger and Light Truck Tires1 2013

113

2

3

Europe

North America

Continental

Goodyear/ Sumitomo

Michelin

Bridgestone/ Firestone

Goodyear/ Sumitomo

Michelin


Continental

All others

All others


Replacement.2

West and Central including Turkey.3

Incl. Central America/Caribbean markets.

VII. Commercial Vehicle TiresMarket Share for Truck Tires1 2013

114

2Europe

North America


Goodyear/ Sumitomo

Michelin


Goodyear/ Sumitomo

Michelin

Continental

All others

Continental

All others


Replacement.2

West and Central, incl. Turkey. Market share of all suppliers other than top 3


VII. Passenger and Light Truck TiresContinental Worldwide PLT Production 20131

1151Without Europe.

(in mn units)

Mount Vernon

San Luis Potosí

Cuenca

Camaçari

Port Elizabeth

Alor Star /

Petaling Jaya

10

6

26

3

3

(US)

(MX)

(EC)

(BR)

(ZA)

(MY)

Hefei

(CN)

3

VII. Passenger and Light Truck TiresContinental European PLT Production 2013

116

Lousado

17

Sarreguemines

10

Aachen

8

Korbach

9

Otrokovice

21

Puchov

13

Timişoara

15

(in mn units)

(PT)

(DE)

(FR)

(RO)

(CZ)

(SK)


VII. Commercial Vehicle TiresContinental Worldwide Truck Tire Production1 2013

117

1Production of bias and radial tires.

2Including deliveries to joint venture partners.

(in mn units)

Mount Vernon2

(US)

2.8

Cuenca

0.2

(EC)

Camaçari

(BR)

0.5

Port Elizabeth

(ZA)

0.1

OtrokovicePuchov

(CZ)(SK)

0.8

2.5

Petaling Jaya

0.2

(MY)

0.6

Modipuram

(IN)

VII. TiresCost of Labor at Continental Manufacturing Sites1

118

4%

13%

15%

22%

28%

28%

32%

34%

38%

56%

69%

85%

95%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

India

China

Malaysia

Romania

Ecuador

South Africa

Brazil

Slovakia

Czech Republic

Portugal

Mexico

USA

France

Germany

1Based on average currency exchange rates 2013.


Winter tires worldwide1

(in mn units / increase year over year in %)

VII. Passenger and Light Truck TiresProduct Mix Improvement

1191

OE & replacement (excl. all-season tires).2

All summer tires and all-season tires with rim sizes of at least 17 inches.

High performance summer tires worldwide2

(in mn units / increase year over year in %)

19 1921 21 21

22

4.1%1.2%

6.8%3.8%

0.7%1.7%

2008 2009 2010 2011 2012 2013

1917

24

29

32

35

-2.6%

-10.2%

40.5%

21.6%

13.2%

6.5%

2008 2009 2010 2011 2012 2013

VII. Passenger and Light Truck TiresUnit Sales 2008 - 2013

120

8475

86 89 84 84

23

20

2529

30 32

4

4

44 8 9

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012 2013

Europe (incl. Rest of world) The Americas Asia / Pacific

(in mn units)

111

99

114123 122 125


VII. Commercial Vehicle TiresUnit Sales 2008 - 2013

121

3.7

2.32.8 3.1 2.9 3.1

2.8

2.6

3.2

3.53.5

3.6

0.2

0.2

0.3

0.4 0.70.8

0

1

2

3

4

5

6

7

8

2008 2009 2010 2011 2012 2013

Europe (incl. Rest of world) The Americas Asia / Pacific

(in mn units)

6.7

5.1

6.3

7.0 7.1

7.6

122

Topics





Market DataV. 60


Rubber Group – ContiTech DivisionVII. 123



GlossaryX. 151


VII. ContiTechBusiness Units and Key Products

123

Air Spring Systems Benecke-Kaliko Group Conveyor Belt GroupCompounding Technology

Power Transmission Group Vibration ControlFluid TechnologyElastomer Coatings

› Air suspensions systems for

buses, trucks and rail vehicles

› Air actuators for pneumatics and

air springs for vibration isolation

› Compensators

› Technical and decorative

surface materials for automotive

interior trim

› Compounds

› Compound development

› Testing services

› Steel cord / fabric belts

› Special-purpose belts

› Conveyor belts components

› Service material

› Coated fabrics

› Printing blankets/ forms

› Diaphragms /

diaphragm materials

› Gasholder diaphragms

› Collapsible tanks

› Concertina walls

› Fuel cells

Hoses / hose lines for:

› Exhaust & fuel systems

› Powertrain

› Air conditioning

› Heating / cooling systems

› Steering and chassis

› Turbocharger

› Industrial applications

› V-belts

› Multiple V-ribbed belts

› Timing belts

› Flat belts

› Belt drive systems

› Rubber-to-metal bonded

products

› Hydromounts

› Mount systems

› Precision molded parts

› Blow molded parts

› Plastic parts

VII. ContiTechLocations Worldwide

124

India▐ Kolkata▐ New Delhi

Brazil▐ Ponta Grossa

China▐ Changchun▐ Changshu▐ Changzhi▐ Ninghai▐ Shanghai▐ Tianjin▐ Zhangjiagang

Mexico▐ Montemorelos▐ Monterrey

Japan▐ Kurashiki

South Korea▐ Cheonan▐ Jeonju▐ Yangsan

Finland

▐ Kalkku

France

▐ Andrezieux.

▐ Lyon

Germany

▐ Aachen

▐ Bad Blankenburg

▐ Berlin/Hoppegarten

▐ Dannenberg

▐ Eislingen

▐ Hamburg

▐ Hanover

▐ Hann. Münden

▐ Hedemünden

Chile▐ Santiago de Chile

▐ Herzogenaurach

▐ Karben

▐ Korbach

▐ Moers

▐ Northeim

▐ Oedelsheim

▐ Oppenweiler

▐ Salzgitter

▐ Waltershausen

Romania

▐ Carei

▐ Nadab

▐ Timişoara

Russia▐ Kaluga▐ Moscow

Serbia

▐ Subotica

▐ Veliki Crljeni

Slovakia

▐ Dolné

Vestenice

▐ Puchov

Turkey

▐ Bursa

▐ Cerkezköy

UK

▐ Ashington

▐ Grimsby

▐ Thetford

▐ Wigan

Greece

▐ Vólos

Hungary

▐ Makó

▐ Nyiregyhaza

▐ Szeged

▐ Vác

▐ San Luis Potosí▐ Mexico City

USA▐ Auburn Hills▐ Collierville▐ Halstead▐ Houston

▐ Rochester Hills▐ Somersworth▐ Trumann

▐ Production/R&D ▐ Cooperation, Joint Ventures < 50%


VII. ContiTechKey Figures

125

(in mn €) 2011 20125 20135

Sales 3,583.1 3,711.8 3,878.3

EBITDA 515.0 558.9 576.3

in % of sales 14.4 15.1 14.9

EBIT 417.1 453.6 462.1

in % of sales 11.6 12.2 11.9


in % of sales1 12.2 12.4


ROCE (average) in % 38.7 39.1 36.5

R, D & E expense 65.0 74.4 84.6

in % of sales 1.8 2.0 2.2

Capex2 110.6 151.0 166.0

in % of sales 3.1 4.1 4.3


in % of sales 2.7 2.8 2.9


1






VII. ContiTechSales by Markets

126

Germany41%


33%

NAFTA7%

Asia13%

Other countries

6%

Germany38%


35%

NAFTA8%

Asia13%

Other countries

6%

Germany33%


31%

NAFTA12%

Asia16%

Other countries

8%



VII. ContiTechA Leading Global Supplier in its Business Units

127

Business Unit Product line

Fluid TechnologyHoses & hose line systems for numerous

Automotive, Industry, Oil & Marine applications

Conveyor Belt GroupConveyor belts

Smart service solutions

Power Transmission Group Multiple V-ribbed belts & timing belts

Benecke-Kaliko Group Foils for automotive interiors

Vibration ControlChassis sealing system

Engine mounts for trucks

Air Spring SystemsTruck, bus & trailer air springs

Railway systems

Compounding Technology Compounds

Elastomer CoatingsPrinting blankets

Life raft / protective gear materials

VII. ContiTechProduct Overview

128

Dri

ve b

elt

s

Seali

ng

ele

men

ts

mo

uld

ed

part

s

Pri

nti

ng

bla

nkets

/ f

lexo

pla

tes

Ela

sto

mer

co

mp

ou

nd

s/

sh

eeti

ng

s

Co

ncert

ina w

all

s

Co

llap

sib

le tan

ks

Flo

or

co

veri

ng

s

Co

nveyo

r b

elt

s/

serv

ice m

ate

rials

Gas h

old

er

dia

ph

rag

ms

Exp

an

sio

n J

oin

t

Co

up

lin

gele

men

ts

Vib

rati

on

co

ntr

ol te

ch

no

log

y

Air

sp

rin

gs

air

actu

ato

rs

Dia

ph

rag

ms

dia

ph

rag

m m

ate

rials

Ho

ses/h

ose lin

e s

yste

ms

Sp

ecia

l-p

urp

ose

co

nveyo

r b

elt

s

Ind

ustr

ial m

ate

rials

Insu

lati

on

mate

rial

Automotive industry x x x x x x x x x x

Mining industry x x x x x

Printing industry x x x x x x

Energy industry x x x x x x x x x x x x

Agriculture x x x x x x x x x

Food industry x x x x x x x

Aerospace industry x x x x x x x

Mechanical and plant engineering x x x x x x x x x x x x x x

Comm. and industry vehicles/buses x x x x x x x x x x x

Rail transport technology x x x x x x x x x x x

Occupational safety x x x x

Compensators x x x

Shipbuilding/port industries x x x x x x x x x x


VII. ContiTechSales and Employees 2013

1291

Including other operations.2

Including service functions.

Business Unit Sales in mn € Employees

Fluid Technology 1,476 15,126

Conveyor Belt Group 597 3,983

Power Transmission Group 419 2,744

Benecke-Kaliko Group 392 1,906

Vibration Control 345 2,341

Air Spring Systems 288 1,609

Compounding Technology 276 770

Elastomer Coatings 109 604

ContiTech 3,8781 29,7252

VII. ContiTechForming a Global Player in Rubber and Plastics Technologies

130

0

1,000

2,000

3,000

4,000

5,000

6,000

ContiTech Bridgestone Diversif ied Products

Freudenberg (Seals and Vibration

Control)

Hutchinson Tokai Rubber Industries

NOK Seal business

Pinafore (Tomkins)

Cooper Standard

Parker Hanif in

Trelleborg AB (excl.

wheel

business)

Source: Company websites, Annual reports 2012, Bloomberg and European Rubber Journal (ERJ) .

Exchange rate (as average 2012): EUR/USD 1.2860; EUR/JPY 102.69; calendarized to Dec year-end for NOK Corporation & Tokai Rubber Industries.

Ve

ya

nc

e

Revenues 2012 (mn €)


131

Topics





Market DataV. 60





GlossaryX. 151

VIII. Sustainability at ContinentalOur Policies and Guidelines

132

ESH1 Policy – implements

worldwide the responsibility

for protecting the environment

Code of Conduct – personal

ethics, conflicts of interest

OUR BASICS – the

guidelines, codex and basic

principles of our business

activities

OUR BASICS Our corporate guidelines

Corporate Governance Policy

– to further the responsible

management of the company

focused on value creation

Risk Report – overview of our

Risk Management

CSR Guideline Our basic values and principles

Environmental Responsibility Social Responsibility Corporate Governance

1“Environment”, “Security, Safety” and “Health”.


VIII. Environmental ResponsibilityCorporate Environmental Key Performance Indicators

133

1 Changes to previous figures are based on changes in the scope of the survey.

2 Independently verified by KPMG.

** Continental targets.

**

**

**

**

22.1

19.4

22.624.2

26.0

8.4 8.77.6 7.2 8.0

7.0

2008 2009 2010 2011 2012 2016

Energy consumption1

mn GJ (gigajoule) per tonne of product (GJ)

0.51 0.41 0.49 0.490.59

1.40 1.38

1.59

1.78 1.86

0.730.80

0.70 0.670.75

0.67

2008 2009 2010 2011 2012 2016

CO2 emissions 1,2

direct (mn tonnes) indirect (mn tonnes)

per tonne of product (tonne)

14.2

11.5

13.914.6

16.1

5.4 5.2 4.7 4.3 4.9 4.4

2008 2009 2010 2011 2012 2016

Water consumption1

mn m³ per tonne of product (m³)

228

185206

252265

86.9 83.469.2 74.5 81.2 71.9

67.7 68.1 58.5 62.3 68.9 65.9

2008 2009 2010 2011 2012 2016

Waste production1

thousand tonnes per tonne of product (kg)

recycling per tonne of product (kg)

VIII. Environmental ResponsibilityEmission Reduction - Electrification Tailored to Fit (48-Volt Eco Drive)

1341Measurement based on NEDC driving cycle compared with a VW Golf VI BlueMotion, 4-cylinder gasoline engine, 1.2-liter TSI, 77 kW.

48-Volt Eco Drive – System overview

Functions:

›Start-Stop features

›Recuperation of braking energy

›Stabilization of board net

during peak demand

›Sailing and coasting features

consume no fuel and cause

no emissions

Start-Stop andvoltage regulation

+ EnhancedStart-Stop function

+ Recuperation

48-Volt Eco Drive – CO2 reduction

48V / 12V

DC / DC Converter

Li-Ion

Battery

Total CO2 reduction: – 13.0%1

CO

2em

issio

n

– 7.0%

– 0.6%– 5.4%

E-Machine with

integrated

Inverter

Objective:

Cost-efficient hybrids for

the mass market

Solution:

48-Volt Eco Drive

›Fuel-saving functions

that are found only in

more expensive mild

hybrids of around

120 volts

›Around 13% less fuel

consumption

›No need to interfere

with the engine-trans-

mission configuration.

Technology that is

feasible even for

smaller cars

›Low voltage means that

no special safety pre-

cautions are necessary


VIII. Environmental ResponsibilityResearch in Alternative Raw Materials for Tire Production

135

› Development project in collaboration with the Fraunhofer Institute to

cultivate a Russian dandelion variety with latex sap rich in natural rubber.

This natural rubber has at least the same quality and performance

characteristics like as conventional rubber from rubber trees.

› Benefits:

› Reduction in dependency on harvest situation in subtropical regions

› Lower requirements on the fertility of the soil

› Lower environmental impact due to reduced logistic requirements

› At present we are convinced we will achieve a substantial increase in

efficiency by using rubber from dandelions

› Continental’s dandelion project was nominated as one of the top 3 in the

category “Automobility” at the “GreenTec Awards 2013”

VIII. Social Responsibility – Responsible EmployerEqual Opportunities

136

Diversity project to support women

› A talent pool which incorporates all corporate divisions

› The formation of career support networks

› Female mentoring program

› Female ambassadors

› Working time models such as part-time, home office,

job sharing

› Support with combining job and family

› The specification of target corridors for the proportion

of women in management functions in the future

Demographics program

A holistic concept designed to address the far-reaching

changes as a result of the expected demographic trend

focuses on four topics:

› Workplace design

› Maintaining employee health for a longer working life

› Targeted qualification measures

› Motivation for a longer professional life

Award of the Apriori - business solution AG for

Continental’s “Demography Management”

Source: Based on information in the Continental AG Annual Report 2013.


› Continental is a participant of the United Nations Global

Compact. We have thus committed ourselves to its ten

principles in the areas of human rights, labor,

environment and anti-corruption.

VIII. Social ResponsibilityCorporate Memberships (1)

137Source: www.vielfalt-als-chance.de (German Federal Government Commissioner for Migration, Refugees and Integration); luxemburger-deklaration.de.1

European Network for Workplace Health Promotion.

› The World Business Council for Sustainable

Development (WBCSD), founded in 1995, is a

frontrunner and catalyst on the path to sustainable

development.

› The Charter of Diversity recognizes diversity as an

opportunity. The signatory companies commit to

diversity, fairness and mutual respect. The aim is to

create a working environment that is free of prejudice

and discrimination.

› The Luxembourg Declaration on Workplace Health

Promotion (WHP) promotes health and occupational

safety in the companies of the member states of

ENWHP1. The declaration encourages members to

attach greater importance to WHP.

VIII. Social ResponsibilityCorporate Memberships (2)

1381

150 top capitalized companies in the Economic and Monetary Union market which are eligible investments.

› Since June 2013 Continental is rated ‘Prime’ by

oekom research. Based on the oekom ratings more

than 500 bn euros is invested worldwide by

sustainability-oriented investors.

› The European Road Safety Charter is an appeal

and impetus for all groups in society to make a

concrete contribution to improving traffic safety in

Europe. The goal is to reduce the number of

fatalities on the roads of the European Union (EU)

by 2020.

› The Carbon Disclosure Project (CDP) is a non-profit

organization that aims to create more transparency

regarding environmentally damaging emissions.

Continental has been answering CDP’s extensive

questionnaire since 2009. In 2012, we were included in

the Carbon Disclosure Leadership Index.

› ECPI is a leading rating and index company

dedicated to ESG Research since 1997. Continental

is a constituent of the ECPI Ethical EMU Equity1 as

one of the Global Equity Indices.


VIII. Social ResponsibilityHealth and Occupational Safety

139

2Number of accident related hours lost worldwide

per million hours worked. 3

Number of work related accidents worldwide

with one or more days lost per million hours worked.

› Our specialist department HISS (“Health,

Industrial Hygiene, Safety & Security”) sets

protection standards, which apply across the

entire corporation.

› These standards are the foundation for safety at

work, secure production plants and processes,

and reflect our responsibility to our employees

and to the environment.

942845

729638

574

472

5.7 5.0 4.6 4.2 3.6 3.3

2008 2009 2010 2011 2012 20131

Paid and unpaid absences due to sickness in relation to the

contractual working hours in percent.

Absence rate due to sickness1

Hours lost due to accidents2,3

4.0 4.03.8

3.5 3.53

2008 2009 2010 2011 2012 2013

20 members in accordance with the

Mitbestimmungsgesetz (German Co-determination

Act):

10 elected by ASM

10 elected by employees of Continental AG and its

subsidiaries who are employed in Germany

VIII. Corporate GovernanceCorporate Bodies

140

Shareholders exercise their voting rights (1 share = 1 vote)

Chairman’s Committee

& Mediation Committee

9 members

Audit Committee

Nomination Committee

Annual Shareholders’ Meeting (ASM)

Chairman of the

Executive Board

Solely responsible for the management

of the company

appoints, supervises, advises

Chairman of the

Supervisory Board

Approval of certain management decisions

of material importance to the company

reportingelection / ratification

reporting

Corporate Governance is the responsibility of the company’s corporate bodies. Continental AG’s Corporate Governance

Principles are closely modeled on the recommendations and suggestions of the German Corporate Governance Code.

ratificationtaking into account resolutions of ASM

Executive Board

Supervisory Board

Source: Based on information in the Continental AG Annual Report 2013.


141

Topics





Market DataV. 60





GlossaryX. 151

Share Data

Type of share No-par value share

Bloomberg ticker CON

Reuters ticker CONG

German security identification number (WKN) 543 900

ISIN number DE0005439004

Shares outstanding as at December 31, 2013 200,005,983

IX. Share and Bond InformationShare Data / ADR Data

142

ADR Data1

Ratio (ordinary share : ADR) 1:5

Bloomberg ticker CTTAY

Reuters ticker CTTAY.PK

ISIN number US2107712000

ADR level Level 1

Exchange OTC

Sponsor Deutsche Bank Trust Company Americas

1As at March 2014.


IX. Share and Bond InformationShare Price Development vs. Major Stock Indexes

143Source: Bloomberg, January 2014.

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

Ja

n-9

8

Ja

n-9

9

Ja

n-0

0

Ja

n-0

1

Ja

n-0

2

Ja

n-0

3

Ja

n-0

4

Ja

n-0

5

Ja

n-0

6

Ja

n-0

7

Ja

n-0

8

Ja

n-0

9

Ja

n-1

0

Ja

n-1

1

Ja

n-1

2

Ja

n-1

3

Continental DAX EURO STOXX 50 EURO STOXX Automobile & Parts

(based on January 1, 1998)

433 433

512 512 512 512

169 169

200 200 200 200

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013

Common stock (in mn €) Number of shares (in mn)

IX. Share and Bond InformationCommon Stock

144


UK & Ireland30.9%

Germany11.8%

Germany (retail) 5.4%Scandinavia

4.0%

France4.0%

Rest of Europe5.2%

US & Canada20.2%

Asia & Australia

5.7%

Unidentified12.8%

IX. Share and Bond InformationShareholder Structure

145

Free Float54.0%

Schaeffler Group46.0%

Shareholder structure

as at December 31, 2013

Shareholder structure

of the free float

(87.2% identified)

as at December 31, 2013

IX. Share and Bond InformationBond Details

146

1Guaranteed by Continental AG and certain subsidiaries of Continental AG.

2Security package released in connection with the refinancing of the Syndicated Facility, upstream guarantees package still in place.

3Unsolicited rating at date of issuance.

4Fitch since Jul 15, 2013; Moody‘s since Sept 19, 2013; S&P since Dec 6, 2013.

Issuer Conti-Gummi Finance B.V.,

Netherlands1 Continental AG1 Continental Rubber of

America, Corp., USA1 Continental AG1

Issue Senior Notes Senior Notes Senior Notes2 Senior Notes

Principal amount €750 mn €750 mn $950 mn €750 mn

Offering price 99.595% 98.950% 100.000% 99.228%

Rating at issuance date

Ba1 (Moody’s)

BB (S&P)

BBB (Fitch3)

Ba2 (Moody’s)

BB (S&P)

BB (Fitch3)

Ba3 (Moody’s)

BB- (S&P)

BB (Fitch3)

Ba1 (Moody’s)

BB (S&P)

BBB (Fitch3)

Current corp. &

bond rating4 Baa3 (Moody’s), BBB (S&P), BBB (Fitch)

Coupon 2.5% p.a. 3.0% p.a. 4.5% p.a. 3.125% p.a.

Issue date Sept 19, 2013 Jul 16, 2013 Sept 24, 2012 Sept 9, 2013

Maturity Mar 20, 2017 Jul 16, 2018 Sept 15, 2019 Sept 9, 2020

Start of period for early

redemption (60-90 days’

prior notice)

--- --- Sept 15, 2015 ---

Interest paymentAnnual

Mar 20

Semi annual

Jan 16/Jul 16

Semi annual

Mar 15/Sept 15

Annual

Sept 9

WKN A1VC6B A1X24V A1G9JJ A1X3B7

ISIN XS0972719412 XS0953199634 DE000A1G9JJ0 XS0969344083

Denomination€1,000 with min. tradable

amount €1,000

€1,000 with min. tradable

amount €1,000

$1,000 with min. tradable

amount $150,000

€1,000 with min. tradable

amount €1,000


IX. Share and Bond InformationDevelopment of the Bonds

147Source: Bloomberg, January 2014.

90

95

100

105

110

115

July

2010

8.5 % July 2015 7.5 % Sept. 2017 7.125 % Oct. 2018 6.5 % Jan. 2016

2.5 % March 2017 3.0 % July 2018 4.5 % Sept. 2019 3.125 % Sept. 2020

February 28, 2014(in €)

July

2011

July

2012

July

2013

IX. Share and Bond InformationDevelopment of Continental’s Credit Rating

148

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

BBB+ / Baa1

BBB / Baa2

BBB- / Baa3

BB+ / Ba1

BB / Ba2

BB- / Ba3

B+ / B1

B / B2

S&P, Fitch / Moody‘sStandard & Poor‘s Moody‘s

1 Fitch

2

Before

Siemens

VDO

No

n-I

nv

estm

en

t

Gra

de

Inv

estm

en

t

gra

de

1 Solicited Rating until January 2014.

2 Solicited Rating since November 2013.


IX. Share and Bond Information10 Year Financial Overview

1491Based upon the Executive Board’s proposal for the appropriation of profits.

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Balance sheets

Non-current assets in € millions 15,569.5 15,685.7 15,075.5 14,887.9 14,724.6 16,348.4 17,383.9 5,877.9 5,193.8 4,953.9

Current assets in € millions 11,251.3 11,764.4 10,962.9 9,502.6 8,324.6 8,339.5 10,353.7 4,975.1 5,353.9 4,742.0

Total assets in € millions 26,820.8 27,450.1 26,038.4 24,390.5 23,049.2 24,687.9 27,737.6 10,853.0 10,547.7 9,695.9

Shareholders' equity (excl. non-controlling

interests) in € millions 9,011.2 7,779.0 7,146.1 5,859.6 3,772.6 5,265.4 6,583.2 4,470.8 3,574.2 2,706.2

Non-controlling interests in € millions 311.0 377.4 397.2 343.3 289.1 264.5 272.9 239.1 220.8 231.0

Total equity (incl. non-controlling interests) in € millions 9,322.2 8,156.4 7,543.3 6,202.9 4,061.7 5,529.9 6,856.1 4,709.9 3,795.0 2,937.2

Equity ratio1

in % 34.8 29.7 29.0 25.4 17.6 22.4 24.7 43.4 36.0 30.3

Capital expenditure2

in € millions 1,981.1 2,019.4 1,711.3 1,296.4 860.1 1,595.2 896.9 805.0 871.8 703.0

Net indebtedness in € millions 4,289.3 5,319.9 6,772.1 7,317.0 8,895.5 10,483.5 10,856.4 1,181.0 493.2 881.1

Gearing ratio in % 46.0 65.2 89.8 118.0 219.0 189.6 158.3 25.1 13.0 30.0

Income statements

Sales in € millions 33,331.0 32,736.2 30,504.9 26,046.9 20,095.7 24,238.7 16,619.4 14,887.0 13,837.2 12,597.4

Share of foreign sales in % 76.2 75.4 73.7 72.8 71.0 68.5 69.2 67.6 65.8 66.8

Cost of sales3

in % 76.6 78.3 79.0 77.8 80.0 80.4 75.8 75.3 74.6 75.0

Research and development expenses3

in % 5.6 5.3 5.3 5.6 6.7 6.2 5.0 4.5 4.3 4.2

Selling expenses3

in % 5.0 4.8 4.7 5.0 5.6 4.9 5.5 5.7 6.1 6.2

Administrative expenses3

in % 2.1 2.0 2.1 2.5 3.0 3.2 2.7 3.0 3.1 3.1

EBITDA in € millions 5,095.0 4,967.4 4,228.0 3,587.6 1,591.2 2,771.4 2,490.6 2,301.5 2,248.9 1,824.6

EBITDA3

in % 15.3 15.2 13.9 13.8 7.9 11.4 15.0 15.5 16.3 14.5

Personnel expenses in € millions 7,124.5 6,813.7 6,354.3 5,891.7 5,199.8 5,746.3 3,652.7 3,175.2 3,054.3 3,011.7

Depreciation and amortization4

in € millions 1,831.3 1,781.2 1,631.1 1,652.4 2,631.6 3,067.6 814.8 699.6 741.8 667.2

Net income attributable to the

shareholders of the parent in € millions 1,923.1 1,905.2 1,242.2 576.0 -1,649.2 -1,123.5 1,020.6 981.9 929.6 716.2

Dividend and earnings per share

Dividend for the fiscal year in € millions 500.05

450.0 300.0 — — — 323.4 293.1 145.9 116.3

Number of shares

at December 31 in millions 200.0 200.0 200.0 200.0 169.0 169.0 161.7 146.5 145.9 145.4

Net income (per share) attributable to the

shareholders of the parent € 9.62 9.53 6.21 2.88 -9.76 -6.84 6.79 6.72 6.38 5.19

Employees

Annual average in thousands 175.4 169.0 159.7 142.7 133.4 148.4 93.9 81.6 81.1 73.7

150

Topics





Market DataV. 60





GlossaryX. 151


ADR American Depositary Receipt

Capex Capital expenditure on property, plant, equipment and software

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

FCF Free Cash Flow. We define FCF as cash provided by operating activities minus cash used for investing

activities

Gearing ratio Represents the net indebtedness divided by total equity, expressed as a percentage

ISIN International Securities Identification Number

Net indebtedness The net amount of interest-bearing financial liabilities as recognized in the balance sheet, cash and cash

equivalents, the positive fair values of the derivative instruments as well as other interest bearing investments.

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, income tax receivable and payable, as well as other

financial assets and debts.

PPA Purchase Price Allocation

R, D & E expenses Research, Development and Engineering Expenses

ROCE (average) Return On Capital Employed. We define ROCE as the ratio of EBIT to average operating assets for the fiscal

year

X. GlossaryFinancial Glossary

151

ABS Anti-Lock Brake System

ACC Adaptive Cruise Control

ADAS Advanced Driver Assistance System

AMT Automated Manual Transmission

AT Automatic Transmission

CAGR Compound Annual Growth Rate

C&S Chassis & Safety Division

CT ContiTech Division

CV Commercial Vehicle

CVT Commercial Vehicle Tires Division

CVaT Continuous Variable Transmission

ECU Electronic Control Unit

DCT Double Clutch Transmission

EBS Electronic Brake System

ESC Electronic Stability Control

HEV Hybrid Electric Vehicle

HMI Human Machine Interface

HVAC Heating, Ventilation and Air Conditioning

I Interior Division

152

MAB/MIB Motorcycle Anti-lock Braking System /

Motorcycle Integrated Brake System

MT Manual Transmission

NVH Noise Vibration Harshness

OTR Off The Road Tires

PCB Printed Circuit Board

PLT Passenger and Light Truck Tires Division

PT Powertrain Division

PWM Pulse Width Modulation

RV Recreational Vehicle

SSR Self-Supporting Runflat Tires

SUV Sport Utility Vehicle

TCS Traction Control System

TPMS Tire Pressure Monitoring System

X. GlossaryProduct and Division Glossary


Contact Data

153

Vahrenwalder Str. 9 Klaus Paesler

30165 Hanover Phone: +49 511 938 1316

Germany e-mail: [email protected]

Rolf Woller Sabine Reese

Phone: +49 511 938 1068 Phone: +49 511 938 1027

e-mail: [email protected] e-mail: [email protected]

Ingrid Kampf Michael Saemann

Phone: +49 511 938 1163 Phone: +49 511 938 1307

Fax: +49 511 938 1080 e-mail: [email protected]

e-mail: [email protected]

www.continental-ir.com Henry Schniewind

Phone: +49 511 938 1062

e-mail: [email protected]

Financial Calendar

154

2014

Annual Financial Press Conference March 6, 2014

Annual Shareholders’ Meeting April 25, 2014

Q1 Financial Report May 6, 2014

Half Year Financial Report July 31, 2014

Nine Month Financial Report November 4, 2014

2015

Annual Financial Press Conference March 2015

Annual Shareholders’ Meeting April 30, 2015

Q1 Financial Report May 2015

Half Year Financial Report August 2015

Nine Month Financial Report November 2015


mailto:[email protected]





http://www.continental-ir.com/


Fact

Bo

ok

20

13C

on

tin

en

tal A

G

Continental Aktiengesellschaft

Investor Relations

P.O. Box 169, 30001 Hanover, Germany

Vahrenwalder Str. 9, Hanover, Germany

Phone +49 511 938-1163, Fax +49 511 938-1080

E-mail [email protected]

www.continental-ir.com

Continental AG is an Official Sponsor of the

2014 FIFA World Cup Brazil™.

Fact Book2013

www.continental-corporation.com

140203_Conti_Factbook_2013_Umschlag_425x297_IsoCV2.indd 1-3 05.02.14 11:31

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