Citigroup Roadshow Frankfurt & London May 10/11, 2010 Wolfgang Schäfer, CFO.
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Transcript of Citigroup Roadshow Frankfurt & London May 10/11, 2010 Wolfgang Schäfer, CFO.
Citigroup Roadshow Frankfurt & London
May 10/11, 2010
Wolfgang Schäfer, CFO
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
2 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
3 / © Continental AG
HighlightsGroup – Summary of Financial Highlights
Q1 sales up by 39% YOY and by 5% QOQ; Q1 adj. EBIT* up by € 641 mn YOY
Adj. EBIT* improved to € 605 mn – adj. EBIT* margin 10.2% in Q1/10; adj. EBIT* Q1/10 is above Q1/08 although sales still down by almost 10%
Automotive Group: adj. EBIT* margin at 8% in Q1 2010; again strong results in C&S; further recovery in Interior and continuous improvement in Powertrain
Rubber Group: adj. EBIT* margin at 14.5% in Q1 2010; all divisions contributed to sustained adj. EBIT* level compared to Q4 2009; no material impact yet from escalated raw material prices (esp. natural rubber)
Overall almost no special items booked in Q1 2010
Cash consumption (FCF) limited to € 363 mn in Q1 2010 despite a strong increase in all business activities
No major cash out in Q1 2010 for restructuring undertaken in 2009
Capex at € 178 mn in Q1 2010 but will increase in the coming quarters
Net debt down to € 8.2 bn at the end of Q1; net debt/adj. EBITDA @ 2.7x** in Q1 2010
* w/o amortization of intangibles from PPA, consolidation and special effects; ** calculated according to syndicated loan facilities
Q1
2010
P&
LQ
1 20
10B
alan
ce S
hee
t
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
6,639 6,6155,892
5,093
4,3024,761
5,3375,696
5,997
-36.7
604.7
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
Sales
adj. EBIT
4 / © Continental AG
HighlightsEarnings Increase Thanks to Business Recovery and Cost Control
10.2%**
Continental Corporation
Consolidated Sales € 24.239 bn adj. EBIT* 1.747 bn
Consolidated Sales € 20.096 bn adj. EBIT* 1.166 bn
* w/o amortization of intangibles from PPA, consolidation and special effects
** adj. EBIT as a percentage of sales before changes in scope of consolidation
*
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
2,521
3,770
4,351
5 / © Continental AG
Sales (€ millions) Adjusted EBIT* (€ millions)
-146
300
Sales (€ millions) Adjusted EBIT* (€ millions)
Automotive Group Rubber Group
HighlightsEarnings Increase Thanks to Business Recovery and Cost Control
* w/o amortization of intangibles from PPA, consolidation and special effects
1Q 2Q 3Q 4Q
2008
2Q 4Q 1Q 3Q
2009
2Q 4Q 1Q 3Q
2010
1Q 2Q 3Q 4Q
2008
2Q 4Q 1Q 3Q
2009
2Q 4Q 1Q 3Q
2010
1,784
2,2322,292
1Q 2Q 3Q 4Q
2008
2Q 4Q 1Q 3Q
2009
2Q 4Q 1Q 3Q
2010
121
320
1Q 2Q 3Q 4Q
2008
2Q 4Q 1Q 3Q
2009
2Q 4Q 1Q 3Q
2010
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
8,895.5
178.0 9.4
716.4174.1
33.2 23.8
657.7
30.0
1,056.8 8,231.9
Ne
t de
bt
(FY
20
09
)
Ca
pe
x
Ac
qu
isit
ion
s
Ch
g. i
n
rec
eiv
ab
les
Ch
g. i
n
inve
nto
rie
s
Ch
g. i
n
pa
yab
les
Dis
po
sa
ls
Oth
er F
CF
F/X
an
do
the
r
Ca
pit
al
inc
rea
se
Ne
t de
bt
(en
d Q
1/1
0)
219.0%
144.9%
6 / © Continental AG
HighlightsNet Indebtedness Walk-Down (FY 2009 to Q1 2010)
(€ million)
* of subsidiaries and management units
Gearing ratio
Change in working capital € -857.3 mn
**
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
4.75 4.75
4.25 4.25 4.25
4.50
4.75
4.50
4.004.46 4.55
4.28
3.66
2.68
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10
new level (since Dec. 18, 2009)
old level
actual
7
HighlightsAdj. LTM EBITDA at € 3.0 bn
Adj. LTM EBITDA
€ 2,977.1 bn
* Leverage covenant ratio defined as net debt to EBITDA (LTM) as defined in syndicated loan facilities and FSF
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
8
HighlightsCurrent Credit Ratings
Due to the acquisition of Siemens VDO and the beginning of the financial crisis Continental’s corporate credit rating was downgraded several times
Continental’s current credit rating is:
Moody’s since Aug 14, 2009: B1 negative outlook
S&P since Aug 13, 2009: B+ CreditWatch neg.
Rating was confirmed on Jan 21, 2010
We expect S&P to resolve its CreditWatch within the next weeks
Main concerns from S&P acc. to its Feb 2010 report are:
“… we consider that headroom under the new covenant structure could prove tight in 2010 and beyond.”
“… and the relationship between Continental and Schaeffler remains the key risk for the rating.”
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
9 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
6,639.4
4,302.0
5,996.7
13.3%
5.8%
14.8%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin
884.0
249.5
888.3
39.4%
256.0%
adj. EBIT
adj. EBIT margin
-36.7 604.7
10.2%-0.9%
10 / © Continental AG
Group FinancialsCorporation
* **
* EBIT w/o amortization of intangibles from PPA, consolidation (€ +1.8 mn) and special effects (€ -15.8 mn)
** EBIT w/o amortization of intangibles from PPA, consolidation (€ +2.7 mn) and special effects (€ -0.4 mn)
(€ millions)
Adj. LTM EBITDA
€ 2,977.1 mn
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
11 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/09 Q1/10
Car & light vehicle production Europe & NAFTA (tsd units) 9,246 9,486 7,932 6,938 5,193 6,141 6,600 7,368 7,570
Car & light vehicle productionEurope & NAFTA (%-chg. YOY) -3% -3% -7% -26% -45% -36% -17% 6% 46%
Organic sales growth (YOY in %) n/a n/a n/a n/a -40% -31% -11% 22% 50%
adj. EBIT* margin (in %) 8.2% 7.8% 3.5% 1.9% -5.7% 1.2% 3.0% 6.0% -5.9% 8.0%
chg. YOY in WC (€ mn) 312
2009 vs 2008 2010 vs 2009
12 / © Continental AG
FinancialsAutomotive Group - Highlights
Total production volume in Q1/10 increased by 2.4 mn units YOY and by 0.2 mn units QOQ
Sales increased by 50% YOY (Q1/10 vs. Q1/09) and by 9% QOQ (Q1/10 vs. Q4/09)
Organic sales growth again some 4 percentage points above market growth in main markets
Adj. EBIT* margin level almost restored to Q1/08 level after 2 years despite a decrease of 1.7 mn units
Working Capital (WC) under control in Q1/10 although sales increased by € 1.2 bn compared to Q1/09
* w/o amortization of intangibles from PPA, consolidation and special effects
Market
Co
nti
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
-14
5.9
29
9.9
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
13 / © Continental AG
FinancialsAutomotive Group: Continuation of Recovery
Sales increased by € 1,249 mn in Q1/10 compared to Q1/09 and by 9% QOQ
Adj. EBIT* increased by € 446 mn driven by volume recovery and strict cost control
Adj. EBIT* margin up to 8.0%
Sales (€ million) Adj. EBIT* (€ million) and adj. EBIT* margin
Chg. YOY
+1,249
* w/o amortization of intangibles from PPA, consolidation and special effects
-5.9%
8.0%
+446
2,5
21
.3
2,8
37
.8
3,2
23
.0
3,4
60
.3
3,7
70
.3
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
-42.1%-31.3%
-7.7%18.3%
49.5%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
1,354.4
1,105.5
1,340.3
29.9
3,770.3
C&S PT I cons. total
35.9%
61.5%
56.0%
50.1%
14 / © Continental AG
Reported sales increased by 49.5%
Chassis & Safety 56.3%
Powertrain 60.1%
Interior 35.3%
Financials Automotive Group: Overview Q1 2010
Automotive Group: Sales by division and organic growth
(€ million)
Adj. EBIT* and adj. EBIT* margin by division
(€ million)
EBITDA increased by € 426.3 mn to € 472.4 mn (PY € 46.1 mn)
Capex spending declined by € 43.8 mn to € 106.1 mn (2.8% of sales)
R&D expenses declined by 3.4% to € 318.4 mn (8.4% of sales)
Organicsales growth
* w/o amortization of intangibles from PPA, consolidation and special effects
-
163.122.0
114.8 0.0 299.9
C&S PT I cons. total
12.0%
2.0%
8.6% 8.0%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
15 / © Continental AG
Restructuring at PowertrainPowertrain: Continuous Improvement Since Q4/08
(€ million)
*
* w/o amortization of intangibles from PPA, consolidation and special effects
Committed to reach sustainable break-even on adj. EBIT level in 2011
Mid-term margin target at least 8% on reported level
1,294.4
1,076.0
912.9
756.7690.5
797.0907.4
1,004.31,105.5
-102.0
22.0
Q1/08 Q3/08 Q1/09 Q3/09 Q1/10
Sales
adj. EBIT
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
16 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
1,715 1,629
1,1251,297
8.2% 3.7%-5.8%
2.1%
-10.0%
10.0%
30.0%
50.0%
-200.0
300.0
800.0
1,300.0
1,800.0
Q1/07 Q1/08 Q1/09 Q1/10
Volumes ww EBIT margin
6.0%
-23.6%
28.0%
-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%40.0%
010,00020,00030,00040,000
Q1/07 Q1/08 Q1/09 Q1/10
Volume ww Chg yoy
17 / © Continental AG
Financials Rubber Group – Highlights
RT market Europe + 11% / NAFTA +10%
Strong volume recovery – gained MS in RT Europe and Americas in Q1 2010
Volumes almost restored to Q1 2008 levels
Increased tire prices in Europe by 3% to 5% starting May 2010 and by 6% in the US starting June 2010
Profitability restored on much lower volumes
Decision on plant closure in Stoecken
Strong recovery in OE business
Industry business at previous year level
Mix OE / non-OE improved to 55/45 in Q1
Raw material price increases will impactRubber Group in the coming quarters
PL
TC
VT
Co
nti
Te
ch 781 798
569702
11.8% 12.6%6.1%
13.1%
0.0%
10.0%
20.0%
30.0%
40.0%
0.0
500.0
1,000.0
Q1/07 Q1/08 Q1/09 Q1/10
Sales EBIT margin
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
12
0.7
32
0.0
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
18 / © Continental AG
FinancialsRubber Group: Raw Material Prices Start to Affect Earnings in Q2
Sales (€ million)
+448 +199
Sales increased by € 448 mn and are at nearly the same level as in Q4 2009 due primarily to strong replacement tire shipments in Q1 2010
Adj. EBIT* up by € 199 mn and almost unaffected from increasing raw material prices
Raw material cost will be a burden in 2010 – target to compensate gross impact by price increases, mix improvements and efficiency gains
Chg. YOY
* w/o amortization of intangibles from PPA, consolidation and special effects
6.8%
Adj. EBIT* (€ million) and adj. EBIT* margin
14.5%
1,7
83
.6
1,9
26
.8
2,1
18
.0
2,2
39
.9
2,2
31
.9
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
-22.2% -22.5%
-11.9%
3.2%
25.1%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
19 / © Continental AG
Reported sales increased by 25.1%
ContiTech 23.5%
Passenger and Light Truck Tires 28.7%
Commercial Vehicle Tires 18.0%
Financials Rubber Group: Overview Q1 2010
EBITDA increased by € 200.8 mn to € 415.9 mn (PY: € 215.1 mn)
Capex spending decreased by 20.3% to€ 72.3 mn (3.2% of sales)
R&D expenses slightly down by € 0.2 mn at € 56.6 mn (2.5% of sales)
Adjusted EBIT* and adjusted EBIT* margin by divisionRubber Group: Sales by division(€ million)
* w/o amortization of intangibles from PPA, consolidation and special effects
Organicsalesgrowth
(€ million)
702.3
1,283.0280.8
-34.2
2,231.9
CT PLT CVT cons. total
24.8%
14.4%
22.9%
22.3%
93.2
219.6
7.20.0 320.0
CT PLT CVT cons. total
17.4%
2.6%
13.3%
14.5%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
20 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
21 / © Continental AG
Financial indebtednessNet Indebtedness & Gearing Ratio
(€ million)
Equivalent to 189.0%
under IFRS accounting
Interest result Q1 2010 € -153.7 mn:Interest income: € 5.8 mnInterest expenses: € -178.8 mnPositive F/X effects*: € 19.3 mn (mainly not cash effective)
617.5 517.7 525.0 32.8 29.5 28.2 20.4 6.9 0.4 0.1 0.1 13.7 0.1
2,601.1
1,899.0
1,168.6
881.1493.2
1,181.0
10
,85
6.4
10
,48
3.5
11,0
41
.5
9,7
46
.6
9,4
64
.8
8,8
95
.5
8,2
31
.9
168.2%
110.7%
58.9%
30.0%
13.0%25.1%
158.3%
189.6%
210.0%
186.1%
225.9% 219.0%
144.9%
YE YE YE YE YE YE YE YE Q1 H1 9M YE Q1
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Off balance sheet debt Net indebtedness Gearing Ratio
US-GAAP IFRS
*Including effects from changes in fair value of derivative instruments
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
3,687.8
305.3
5,648.1
32.3 22.1 49.0
2010 2011 2012 2013 2014 later
22 / © Continental AG
Financial IndebtednessNext Step: Balance Out Maturity Profile
Cash and undrawn (fully committed) credit lines amounted to € 3.56 bn at March 31, 2010
Tranche D amounted to € 771 mn at end of Q1 2010 and is now accounted as maturity in 2010 but Tranche D will not become due before Aug 2012
Total other maturities (excl. Tranche B) in 2010 and 2011 amount to € 777 mn
2012 maturities from VDO financing:
Tranche C € 5.0 bn
Tranche D at drawn amount
FSF* € 2.45 bn
Possible next step: balance out 2012 maturities by issuance of high yield bond in the course of H1/10
Q1 2010Fully available
credit lines
Cash
1,410
2,151
Q1 2010 Pro-forma for Forward Start Facility
Forward StartFacility
*FSF will pay down outstanding amounts under Tranche B at August 2010
Total maturities 2010 € 1,242
thereof Tranche D € 771 mn;
Tranche D due in 08/2012
Fully availablecredit lines
Cash
1,410
2,151
471.6305.3
5,648.1
32.3 22.1 49.0770.7
2,445.5
2010 2011 2012 2013 2014 later
1,242.3
8,093.6
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Highlights
Group Financials
Financials Automotive GroupUpdate Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
23 / © Continental AG
Agenda
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
261 253
206
147
272 263225
146
Europe NAFTA Asia RoW
2009 2010
267 210
1,241
129290 250
1,356
141
Europe NAFTA Asia RoW
2009 2010
16.8
8.5
28.2
5.4
17.1
10.7
30.6
5.6
Europe NAFTA Asia RoW
2009 2010
16 15
59
27
17 16
60
28
Europe NAFTA Asia RoW
2009 2010
24 / © Continental AG
Outlook 2010Continental – Market Outlook 1/2
PLT RT markets (mn tires)
Truck production (k units)PC & LT production (mn vehicles)
TT RT markets (mn tires)
+2%
+26%
+9%
+4%
+4% +4%
+9% +5%
+9% +19%
+9%
+9%
+7% +8%
+1%
+5%
E E
EE
Source: Global Insight, LMC and own estimates
Old: -1% Old: +20%
Old: +2% Old: +3%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
25 / © Continental AG
Sales
Adj. EBIT* Rubber
Interest result
Total special items
Raw materials tires
Dividend
Capex
Free cash flow
Adj. EBIT* Automotive
€ 20,095.7 mn
€ 1,035.5 mn
€ -720.8 mn
€ 1,755.4 mn
relief of approx. € 250 mn
none
€ 860.1 mn
€ 1,640.3 mn
€ 192.0 mn
at least +5% and up to +10%
Sustain good 2009 results despite raw material price burden
Depending on possible issuance of HYB up to minus € 750-800 mn
At around € 100 mn
At current natural rubber (>3 US $/kg) burden > € 250 mn
No dividend planned
Expected increase of up to € 400 mn
Ability to generate free cash flow limited: a) Rising capex b) Restructuring from 2009 becomes cash
effectivec) Higher working capital
Possibly triple adj. EBIT* compared to 2009
2009 2010E
Outlook 2010 Continental – Company Outlook 2/2
* w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
26 / © Continental AG
Thank you for your attention
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
27 / © Continental AG
Disclaimer
This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Citigroup Roadshow, Frankfurt & London, May 10/11, 2010. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.
Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation
This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic or 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.
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
28 / © Continental AG
Contact
Equity and Debt Markets Relations
Vahrenwalder Str.9 Rolf Woller30165 Hannover Telephone: +49 511 938 1068Germany e-mail: [email protected]: +49 511 938 1163Fax: +49 511 938 1080 Gabriele Collatze-mail: [email protected] Telephone: +49 511 938 1915www.continental-ir.com e-mail: [email protected]
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
29 / © Continental AG
ContinentalFinancial Calendar
2010
Annual Financial Press Conference February 23, 2010
Annual Shareholders’ Meeting April 28, 2010
Q1 Financial Report May 4, 2010
HY Financial Report July 29, 2010
9M Financial Report November 3, 2010
2011
Annual Financial Press Conference February 2011
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
30 / © Continental AG
ContinentalShare Data / ADR Data
Share Data
Bloomberg ticker CON GYReuters ticker CONG.DEISIN number DE0005439004Shares outstandingas of March 31, 2010 200,005,983
ADR Data
Ratio (Ordinary share ADR) 1:1Bloomberg ticker CTTAYReuters ticker CTTAY.PKISIN number US2107712000Type Level 1Trading OTCSponsor Deutsche Bank Trust
Company Americas
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
31 / © Continental AG
Back-up
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
32
Supervisory Board headed by Prof. Dr. Wolfgang Reitzle
Chairman of the Executive Board
Quality & Environment; Corp. Comm.
17 years of industry experience
Dr. Elmar Degenhart (CEO)
Completion of the Executive Board – 160 Years of Experience
PLT Tires Division
13 years of industry experience
Nikolai Setzer
ContiTech Division
Director of HR and Labor relations
30 years of industry experience
Heinz-Gerhard Wente
Chassis & Safety Division
14 years of industry experience
Dr. Ralf Cramer
Powertrain Division
20 years of industry experience
José Avila
Interior Division
23 years of industry experience
Helmut Matschi
RU
BB
ER
GR
OU
P
AU
TO
MO
TIV
E G
RO
UP
Chief Financial Officer
Finance; Controlling; Law; IT
23 years of industry experience
Wolfgang Schäfer
CV Tires Division
Purchasing
20 years of industry experience
Dr. Hans-Joachim Nikolin
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
19
.1
-33
5.8
-31
6.7
16
2.3
-29
5.3
-27
1.4
-56
6.7
21
0.0
-19
6.0
-16
7.2
-36
3.2
14
4.9
CF from operating activities
CF used for investing activities
Free cash flow Gearing (%)
Q1/08
Q1/09
Q1/10
33 / © Continental AG
HighlightsCash Flow (Q1 2008 to Q1 2010)
(€ millions)
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
Volumes (YOY chg.) Q1/09 H1/09 9M/09 FY 09 Q1/10
EU production -39% -32% -26% -21% 33%NAFTA production -51% -56% -41% -32% 73%
ESC -38% -31% -20% -8% 71%ABS -47% -37% -28% -17% 71%Booster -34% -28% -20% -8% 62%Caliper -45% -36% -30% -18% 59%Engine ECUs 54%Injectors 90%NOx sensors 41%
PLT tires volumes -24% -23% -17% -11% 28%CVT tire volumes -31% -33% -30% -23% 18%CT organic sales grow th -26.3% -26.8% -23.2% -17.8% 22.9%
Market data tires
PLT RT Europe -10% -11% -9% -6% 11%PLT RT NAFTA -14% -12% -6% -3% 10%
CVT OE Europe -56% -65% -64% -64% -3%CVT OE NAFTA -45% -49% -46% -41% 14%CVT RT Europe -33% -30% -24% -23% 38%CVT RT NAFTA -28% -23% -18% -18% 27%
34 / © Continental AG
HighlightsOperations Q1 2010: Volumes Overview
* All market data are based on prel. findings
*
*
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
35 / © Continental AG
HighlightsFinancial Highlights Q1 2010 vs. Q1 2009
Sales Increase of 39.4% to € 5,996.7 mn; Organic sales +38.5%
EBITDA Increased by € 638.8 mn to € 888.3 mn (PY € 249.5 mn)
EBIT Increase to € 494.4 mn (PY € -165.0 mn) Adj. EBIT* increased to € 604.7 mn (10.2% margin);PPA** effect € -112.6 mn; total special effects € -0.4 mn
NIAT*** Increased by 495.0 mn to € 227.7 mn (PY € -267.3 mn)
EPS/Div EPS of € 1.14 (PY: € -1.58)EPS w/o PPA** € 1.54 (PY: € -0.91)
Capex Capex decreased by € 61.7 mn to € 178.1 mn; Capex ratio at 3.0% of salesCapex to depreciation coverage 0.45x
R&D Expenses for research and development down by € 11.5 mn to € 375.0 mn; R&D ratio at 6.3% (PY 9.0%)
Cash flow Operating cash flow improved by € 99.3 mn to € -196.0 mn
Net Debt Net indebtedness down by € 663.6 mn from YE 2009 to € 8,231.9 mn; Gearing at 144.9%; liquidity and undrawn credit lines at Q1 10 at € 3.56 bn
* w/o amortization of intangibles from PPA, consolidation and special effects; ** amortization of intangibles from PPA; *** attributable to the shareholders of the parent,
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
36 / © Continental AG
Financials Automotive GroupChassis & Safety
* **
Sales increase of 56.0% before consolidation and FX effects
EBITDA increased by € 160.9 mn (PY € 68.7 mn)
EBIT increased by € 163.6 mn to € 149.0 mn
Adj. EBIT increased by € 162.7 mn to € 163.1 mn
PPA effect in Q1: € -13.3 mn
Special effects € -0.8 mn
* EBIT w/o amortization of intangibles PPA, consolidation (€ +0.2 mn) and special effects (€ -1.7 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -0.8 mn)
(€ millions)
1,452.9
866.7
1,354.4
15.4%
7.9%
17.0%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin
224.1229.6234.2%
56.3%
adj. EBIT
adj. EBIT margin
0.4 163.1
0.0% 12.0%
68.7
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
37 / © Continental AG
Financials Automotive GroupPowertrain
* **
Sales increase of 61.5% before consolidation and FX effects
EBITDA increased by € 120.7 mn to € 83.4 mn
EBIT increased by € 128.7 mnto € -21.6 mn
Adj. EBIT increased by € 124.0 mn to € 22.0 mn
PPA effect in Q1: € -44.0 mn
Special effects € -1.3 mn
* EBIT w/o amortization of intangibles PPA, consolidation (€ -1.2 mn) and special effects (€ -2.7 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ +1.7 mn) and special effects (€ -1.3 mn)
(€ millions)
1,294.4
690.5
1,105.5
9.4%
-5.4%
7.5%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin-37.3
83.4323.6%
60.1%
adj. EBIT margin
adj. EBIT -102.0 22.0
-15.1% 2.0%
121.8
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
38 / © Continental AG
Financials Automotive GroupInterior
(€ millions) Sales increase of 35.9% before consolidation and FX effects
EBITDA increased by € 144.8 mn to € 159.5 mn
EBIT increased by € 156.3 mnto € 54.9 mn
Adj. EBIT increased by € 159.1 mn to € 114.8 mn
PPA effect in Q1: € -53.8 mn
Special effects € -6.1 mn
* **
* EBIT w/o amortization of intangibles PPA, consolidation (€ +2.4 mn) and special effects (€ -4.8 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -6.1 mn)
1,656.6
990.6
1,340.3
11.6%
1.5%
11.9%
Q1/08 Q1/09 Q1/10
14.7
159.5
Sales
EBITDA
EBITDA margin
adj. EBIT margin
adj. EBIT -44.3 114.8
-4.6% 8.6%
985.0%
35.3%
192.3
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
39 / © Continental AG
Financials Rubber GroupPassenger and Light Truck Tires
(€ millions) Sales increase of 24.8% before consolidation and FX effects
EBITDA increased by € 124.2 mn to € 274.2 mn
EBIT increased by € 122.7 mnto € 214.7 mn
Adj. EBIT increased by € 122.7 mn to € 219.6 mn
Volumes (worldwide) up by 28% due to strong OE business (OE up by 48%) and strong RT volumes in RT Americas (up by 39%) and Europe (up by 15%)
Raw material prices almost neutral in Q1 2010
Total special effects € -5.8 mn
* EBIT w/o amortization of intangibles PPA, consolidation (€ +0.1 mn) and special effects (€ -4.1 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ +1.9 mn) and special effects (€ -5.8 mn)
* **
1,202.9
997.1
1,283.0
16.4% 15.0%
21.4%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin
197.7150.0
274.2
28.7%
82.8%
adj. EBIT margin
adj. EBIT 219.6
17.4%
96.9
9.7%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
328.3
238.0
280.8
9.6%
2.9%
9.2%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin
31.6
6.9
25.9
18.0%
275.4%
adj. EBIT margin
adj. EBIT -13.2 7.2
-5.6% 2.6%
40 / © Continental AG
Financials Rubber GroupCommercial Vehicle Tires
(€ millions)
* **
Sales increase of 14.4 % before consolidation and FX effects
EBITDA increased by € 19.0 mn to € 25.9 mn
EBIT increased by € 19.6 mnto € 5.9 mn
Adj. EBIT increased by € 20.4 mn to € 7.2 mn
Volumes ww up by 18%; RT Europe up by 35%; RT Americas up by 41%; OE Europe again down by 7%
Raw material prices already impacted Q1 2010 slightly
Total special effects € -0.4 mn
* EBIT w/o amortization of intangibles PPA, consolidation (€ -0.1 mn) and special effects (€ -0.3 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ -0.9 mn) and special effects (€ -0.4 mn)
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
41 / © Continental AG
Financials Rubber GroupContiTech
(€ millions) Sales increase of 22.9% before consolidation and FX effects
EBITDA increased by € 57.6 mn to € 115.8 mn
EBIT increased by € 57.6 mnto € 92.2 mn
Adj. EBIT increased by € 56.2 mn to € 93.2 mn
OE sales up by 50% vs. Q1 09; Aftermarket sales up 24% and industrial sector sales on par with previous years
Mix OE / non-OE: 55/45
Total special effects € -0.4 mn
* **
* EBIT w/o amortization of intangibles PPA, consolidation (€ +0.4 mn) and special effects (€ -2.2 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -0.4 mn)
798.4
568.7
702.3
15.7%
10.2%
16.5%
Q1/08 Q1/09 Q1/10
Sales
EBITDA
EBITDA margin
125.6
58.2
115.8
23.5%
99.0%
adj. EBIT margin
adj. EBIT 37.0 93.2
6.6% 13.3%
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
42 / © Continental AG
Quarterly Sales Analysis
(€ millions)
2010Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1
C&S 1.452,9 1.442,3 1.224,4 1.014,4 5.134,0 866,7 1.049,4 1.188,9 1.268,6 4.373,6 1.354,4Powertrain 1.294,4 1.076,0 912,9 756,7 4.040,0 690,5 797,0 907,4 1.004,3 3.399,2 1.105,5Interior 1.656,6 1.639,0 1.387,4 1.173,7 5.856,7 990,6 1.013,7 1.150,5 1.207,9 4.362,7 1.340,3Passenger and Light Truck Tires 1.202,9 1.332,9 1.326,0 1.238,5 5.100,3 997,1 1.118,1 1.240,7 1.340,5 4.696,4 1.283,0Commercial Vehicle Tires 328,3 357,1 385,5 333,3 1.404,2 238,0 239,8 288,7 299,1 1.065,6 280,8ContiTech 798,4 832,5 741,4 634,7 3.007,0 568,7 588,3 614,1 635,0 2.406,1 702,3Other / Consolidation -94,1 -65,2 -85,6 -58,6 -303,5 -49,6 -45,1 -53,3 -59,9 -207,9 -69,6Continental Corporation 6.639,4 6.614,6 5.892,0 5.092,7 24.238,7 4.302,0 4.761,2 5.337,0 5.695,5 20.095,7 5.996,7
Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -40,3 -27,2 -2,9 25,1 -14,8 56,3Powertrain -46,7 -25,9 -0,6 32,7 -15,9 60,1Interior -40,2 -38,2 -17,1 2,9 -25,5 35,3Passenger and Light Truck Tires -17,1 -16,1 -6,4 8,2 -7,9 28,7Commercial Vehicle Tires -27,5 -32,8 -25,1 -10,3 -24,1 18,0ContiTech -28,8 -29,3 -17,2 0,0 -20,0 23,5Continental Corporation -35,2 -28,0 -9,4 11,8 -17,1 39,4
2008 2009
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
43 / © Continental AG
Quarterly EBITDA Analysis
(€ millions)2010
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1C&S 224,1 233,1 186,8 145,9 789,9 68,7 153,3 205,6 174,0 601,6 229,6Powertrain 121,8 72,2 -4,8 -107,6 81,6 -37,3 5,4 -31,1 49,7 -13,3 83,4Interior 192,3 184,1 90,1 90,8 557,3 14,7 -30,9 -5,3 41,9 20,4 159,5Passenger and Light Truck Tires 197,7 237,3 192,7 245,8 873,5 150,0 249,0 283,2 110,9 793,1 274,2Commercial Vehicle Tires 31,6 36,7 27,2 16,9 112,4 6,9 20,7 11,1 8,8 47,5 25,9ContiTech 125,6 137,8 117,0 49,7 430,1 58,2 61,7 80,0 74,1 274,0 115,8Other / Consolidation -9,1 -10,4 -12,6 -41,3 -73,4 -11,7 -11,5 -102,9 -6,0 -132,1 -0,1Continental Corporation 884,0 890,8 596,4 400,2 2.771,4 249,5 447,7 440,6 453,4 1.591,2 888,3
EBITDA margin in %Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1
C&S 15,4 16,2 15,3 14,4 15,4 7,9 14,6 17,3 13,7 13,8 17,0Powertrain 9,4 6,7 -0,5 -14,2 2,0 -5,4 0,7 -3,4 4,9 -0,4 7,5Interior 11,6 11,2 6,5 7,7 9,5 1,5 -3,0 -0,5 3,5 0,5 11,9Passenger and Light Truck Tires 16,4 17,8 14,5 19,8 17,1 15,0 22,3 22,8 8,3 16,9 21,4Commercial Vehicle Tires 9,6 10,3 7,1 5,1 8,0 2,9 8,6 3,8 2,9 4,5 9,2ContiTech 15,7 16,6 15,8 7,8 14,3 10,2 10,5 13,0 11,7 11,4 16,5Continental Corporation 13,3 13,5 10,1 7,9 11,4 5,8 9,4 8,3 8,0 7,9 14,8
Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -69,3 -34,2 10,1 19,3 -23,8 234,2Powertrain -130,6 -92,5 -547,9 146,2 -116,3 323,6Interior -92,4 -116,8 -105,9 -53,9 -96,3 985,0Passenger and Light Truck Tires -24,1 4,9 47,0 -54,9 -9,2 82,8Commercial Vehicle Tires -78,2 -43,6 -59,2 -47,9 -57,7 275,4ContiTech -53,7 -55,2 -31,6 49,1 -36,3 99,0Continental Corporation -71,8 -49,7 -26,1 13,3 -42,6 256,0
2008 2009
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
44 / © Continental AG
Quarterly Analysis of adjusted EBIT*
* EBIT w/o amortization of intangibles from PPA, consolidation and special effects
(€ millions)
Q1 restated Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FYC&S 0,4 163,1Powertrain -102,0 22,0Interior -44,3 114,8Passenger and Light Truck Tires 96,9 219,6Commercial Vehicle Tires -13,2 7,2ContiTech 37,0 93,2Other / Consolidation -11,5 -15,2Continental Corporation -36,7 604,7
Adjusted EBIT margin in %Q1 restated Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 0,0 12,0Powertrain -15,1 2,0Interior -4,6 8,6Passenger and Light Truck Tires 9,7 17,4Commercial Vehicle Tires -5,6 2,6ContiTech 6,6 13,3Continental Corporation -0,9 10,2
Changes Y-o-Y in % Q1 Q2 Q3 Q4 FYC&S 40.675,0Powertrain 121,6Interior 359,1Passenger and Light Truck Tires 126,6Commercial Vehicle Tires 154,5ContiTech 151,9Continental Corporation 1.747,7
2009 2010
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
45 / © Continental AG
Quarterly EBIT Analysis
(€ millions)2010
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1C&S 141,1 150,4 103,2 -91,6 303,1 -14,6 71,0 -252,6 93,7 -102,5 149,0Powertrain -10,1 -38,8 -127,5 -869,8 -1.046,2 -150,3 -102,4 -603,6 -86,9 -943,2 -21,6Interior 81,0 46,9 -32,6 -557,9 -462,6 -101,4 -143,0 -202,5 -69,1 -516,0 54,9Passenger and Light Truck Tires 142,2 179,1 133,5 171,6 626,4 92,0 190,8 221,4 32,2 536,4 214,7Commercial Vehicle Tires 12,2 16,1 6,8 -5,6 29,5 -13,7 -0,3 -25,1 -11,0 -50,1 5,9ContiTech 100,4 112,7 92,3 23,7 329,1 34,6 34,9 54,2 45,7 169,4 92,2Other / Consolidation -10,1 -10,7 -13,0 -41,7 -75,5 -11,6 -12,2 -103,6 -7,0 -134,4 -0,7Continental Corporation 456,7 455,7 162,7 -1.371,3 -296,2 -165,0 38,8 -911,8 -2,4 -1.040,4 494,4
EBIT margin in %Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1
C&S 9,7 10,4 8,4 -9,0 5,9 -1,7 6,8 -21,2 7,4 -2,3 11,0Powertrain -0,8 -3,6 -14,0 -114,9 -25,9 -21,8 -12,8 -66,5 -8,7 -27,7 -2,0Interior 4,9 2,9 -2,3 -47,5 -7,9 -10,2 -14,1 -17,6 -5,7 -11,8 4,1Passenger and Light Truck Tires 11,8 13,4 10,1 13,9 12,3 9,2 17,1 17,8 2,4 11,4 16,7Commercial Vehicle Tires 3,7 4,5 1,8 -1,7 2,1 -5,8 -0,1 -8,7 -3,7 -4,7 2,1ContiTech 12,6 13,5 12,4 3,7 10,9 6,1 5,9 8,8 7,2 7,0 13,1Continental Corporation 6,9 6,9 2,8 -26,9 -1,2 -3,8 0,8 -17,1 0,0 -5,2 8,2
Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -110,3 -52,8 -344,8 202,3 -133,8 1.120,5Powertrain -1.388,1 -163,9 -373,4 90,0 9,8 85,6Interior -225,2 -404,9 -521,2 87,6 -11,5 154,1Passenger and Light Truck Tires -35,3 6,5 65,8 -81,2 -14,4 133,4Commercial Vehicle Tires -212,3 -101,9 -469,1 -96,4 -269,8 143,1ContiTech -65,5 -69,0 -41,3 92,8 -48,5 166,5Continental Corporation -136,1 -91,5 -660,4 99,8 -251,2 399,6
2008 2009
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
46 / © Continental AG
Consolidated Income Statements
(€ millions)
Reconciliation of EBIT to net income Q1 2010 Q1 2009
Chassis & Safety 149,0 -14,6
Powertrain -21,6 -150,3
Interior 54,9 -101,4
Passenger and Light Truck Tires 214,7 92,0
Commercial Vehicle Tires 5,9 -13,7
ContiTech 92,2 34,6
Other / consolidation -0,7 -11,6
EBIT 494,4 -165,0
Net interest expense -153,7 -127,9
Earnings before income taxes 340,7 -292,9
Income tax expense -96,4 31,1
Minority interests -16,6 -5,5
Net income attributable to the shareholders of the parent 227,7 -267,3
Earnings per share (in EUR) 1,14 -1,58
Diluted earnings per share (in EUR) 1,14 -1,58
Number of Shares 200,0 169,0
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
47 / © Continental AG
Consolidated Balance Sheets Assets
Assets in € millions March 31, 2010 Dec. 31, 2009 March 31, 2009
Goodwill 5.622,5 5.536,6 6.420,2
Other intangible assets 2.000,5 2.068,7 2.450,7
Property, plant, and equipment 5.869,2 5.784,3 6.113,9
Investment properties 18,8 19,3 19,8
Investments in associates 392,7 398,0 665,7
Other investments 8,0 8,0 14,2
Deferred tax assets 777,2 728,9 491,0
Deferred pension charges 71,1 70,8 88,9
Long-term derivative instruments and interest-bearing investments 83,7 78,4 20,8
Other long-term financial assets 20,2 18,9 33,3
Other assets 12,2 12,7 9,4
Non-current assets 14.876,1 14.724,6 16.327,9
Inventories 2.333,5 2.076,0 2.568,4
Trade accounts receivable 4.501,3 3.648,1 3.456,0
Other short-term financial assets 212,4 184,9 154,7
Other assets 618,3 540,5 623,1
Income tax receivable 114,2 94,2 134,5
Short-term derivative instruments and interest-bearing investments 18,7 25,8 27,0
Cash and cash equivalents 1.410,3 1.712,8 1.206,5
Assets held for sale 14,1 42,3 46,5Current assets 9.222,8 8.324,6 8.216,7
Total assets 24.098,9 23.049,2 24.544,6
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
48 / © Continental AG
Consolidated Balance Sheets Shareholders’ Equity and Liabilities
Total equity and liabilities in € millions March 31, 2010 Dec. 31, 2009 March 31, 2009
Common stock 512,0 432,6 432,6
Capital reserves 4.137,3 3.139,5 3.120,9
Retained earnings 864,1 636,4 2.017,7
Other comprehensive income -153,9 -435,9 -579,3
Equity attributable to the shareholders of the parent 5.359,5 3.772,6 4.991,9
Minority interests 321,6 289,1 265,1
Total equity 5.681,1 4.061,7 5.257,0
Provisions for pension liabilities and other post-employment benefits 1.383,0 1.345,0 771,3
Deferred tax liabilities 196,5 196,5 398,9
Long-term provisions for other risks 357,3 351,7 418,1
Long-term portion of indebtedness 5.990,8 5.967,7 9.621,5
Other non-current liabilities 36,3 36,2 44,1
Non-current liabilities 7.963,9 7.897,1 11.253,9
Trade accounts payable 2.946,2 2.819,5 2.340,4
Income tax payable 722,4 644,7 523,1
Short-term provisions for other risks 1.325,3 1.342,9 972,1
Indebtedness 3.753,8 4.744,8 2.674,3
Other short-term financial liabilities 900,2 880,3 879,1
Other liabilities 801,9 648,1 603,6
Liabilities held for sale 4,1 10,1 41,1
Current liabilities 10.453,9 11.090,4 8.033,7
Total equity and liabilities 24.098,9 23.049,2 24.544,6
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
49 / © Continental AG
Consolidated Cash Flow Statements
in € millions
2010 2009
EBIT 494,4 -165,0Interest paid -243,9 -246,1Interest received 6,5 10,6Income tax paid -63,4 -38,8Dividends received 19,3 33,5Depreciation and amortization 393,9 414,5At-equity share in earnings of associates and accrued dividend income from other investments -16,5 -6,4Gains/losses from the disposal of assets, subsidiaries and business units 0,9 -0,3Other non-cash items -14,5 —Changes in
inventories -174,1 43,4trade accounts receivable -716,4 -119,5trade accounts payable 33,2 -160,6pension and post-employment provisions 21,8 119,6other assets and liabilities 62,8 -180,2
Cash flow provided by operating activities -196,0 -295,3
Proceeds on disposal of property, plant, equipment and intangible assets 7,4 11,6Capital expenditure on property, plant, equipment and software -178,0 -239,8Capital expenditure on intangible assets from development projects -11,0 -1,3Proceeds on disposal of subsidiaries and business units, including surrendered cash and cash equivalents 23,8 -0,4Acquisition of subsidiaries and business units, incl. acquired cash and cash equivalents -9,4 -42,9Interest bearing advances 0,0 1,4Cash used for investing activities -167,2 -271,4
Cash flow before financing activities -363,2 -566,7
Change in indebtedness -1.058,8 192,4Proceeds from the issuance of shares 1.056,8 —Dividends paid and repayment of capital to minority interests -0,9 -6,0Cash flow provided by/used for financing activities -2,9 186,4
Change in cash and cash equivalents -366,1 -380,3
Cash and cash equivalents at the beginning of the reporting period 1.712,8 1.569,4Effect of exchange rate changes on cash and cash equivalents 63,6 17,4Cash and cash equivalents at the end of the reporting period 1.410,3 1.206,5
January 1 to March 31
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
50 / © Continental AG
First Quarter Results 2010 Reported and AdjustedBy Division
(€ millions)
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
EBIT -14.6 149.0 -150.3 -21.6 -101.4 54.9 92.0 214.7 -13.7 5.9 34.6 92.2 -11.6 -0.7 -165.0 494.4RoS -1.7% 11.0% -21.8% -2.0% -10.2% 4.1% 9.2% 16.7% -5.8% 2.1% 6.1% 13.1% -3.8% 8.2%
Amortization of intangible assets from PPA 13.5 13.3 44.4 44.0 54.7 53.8 0.9 1.0 0.1 0.0 0.6 0.6 0.1 -0.1 114.3 112.6
Total special effects 1.7 0.8 2.7 1.3 4.8 6.1 4.1 5.8 0.3 0.4 2.2 0.4 0.0 -14.4 15.8 0.4
Total consolidation effects * -0.2 0.0 1.2 -1.7 -2.4 0.0 -0.1 -1.9 0.1 0.9 -0.4 0.0 0.0 0.0 -1.8 -2.7
Total consolidation & special effects 1.5 0.8 3.9 -0.4 2.4 6.1 4.0 3.9 0.4 1.3 1.8 0.4 0.0 -14.4 14.0 -2.3
Adjusted EBIT ** 0.4 163.1 -102.0 22.0 -44.3 114.8 96.9 219.6 -13.2 7.2 37.0 93.2 -11.5 -15.2 -36.7 604.7adj. RoS 0.0% 12.0% -15.1% 2.0% -4.6% 8.6% 9.7% 17.4% -5.6% 2.6% 6.6% 13.3% -0.9% 10.2%
* Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated), disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009 Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects
CVT ContiTech Cons./Corr. GroupChassis & Safety Powertrain Interior PLT
Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010
51 / © Continental AG
First Quarter Results 2010 Reported and AdjustedAutomotive and Rubber Group
(€ millions)
2009 2010 2009 2010 2009 2010 2009 2010
EBIT -266.3 182.3 112.9 312.8 -11.6 -0.7 -165.0 494.4RoS -10.6% 4.8% 6.3% 14.0% -3.8% 8.2%
Amortization of intangible assets from PPA 112.6 111.1 1.6 1.6 0.1 -0.1 114.3 112.6
Total special effects 9.2 8.2 6.6 6.6 0.0 -14.4 15.8 0.4
Total consolidation effects * -1.4 -1.7 -0.4 -1.0 0.0 0.0 -1.8 -2.7
Total consolidation & special effects 7.8 6.5 6.2 5.6 0.0 -14.4 14.0 -2.3
Adjusted EBIT ** -145.9 299.9 120.7 320.0 -11.5 -15.2 -36.7 604.7
adj. RoS -5.9% 8.0% 6.8% 14.5% -0.9% 10.2%
* Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated), disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009 Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects
Automotive Rubber Cons./Corr. Group
Q1 2010