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
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
© Continental AG Fact Book 2013 | 2
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
© Continental AG Fact Book 2013 | 3
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
81 Sales by Markets 47
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
89 Business Units and Key Products 51
90 Locations Worldwide 51
91 Key Figures 52
92 Sales by Markets 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
97 Business Units and Key Products 55
98 Locations Worldwide 55
99 Key Figures 56
100 Sales by Markets 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
© Continental AG Fact Book 2013 | 4
Contents
VII. Rubber Group
Slide Title Page
106 Key Figures 59
107 Sales and Adjusted EBIT by Division 60
108 Sales by Markets 60
VII.1. Rubber Group – Tires Division
Slide Title Page
110 Business Units and Tire Brands 61
111 Key Figures 62
112 Sales by Markets 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
123 Business Units and Key Products 68
124 Locations Worldwide 68
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
© Continental AG Fact Book 2013 | 5
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
© Continental AG Fact Book 2013 | 6
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
© Continental AG Fact Book 2013 | 7
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
© Continental AG Fact Book 2013 | 8
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
© Continental AG Fact Book 2013 | 9
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.
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
› 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%
Sales 2013 €6,260 mn% of total 19%
Adj. EBIT1 €318 mnAdj. EBIT margin 5.1%
Sales 2013 €6,606 mn% of total 20%
Adj. EBIT1 €585 mnAdj. EBIT margin 8.9%
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
© Continental AG Fact Book 2013 | 10
I. Continental at a GlanceA Leading Global Supplier of Tire and Non-Tire Rubber Products
9
Sales 2013 €3,878 mn% of total 11%
Adj. EBIT1 €465 mnAdj. EBIT margin 12.4%
› 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
Sales 2013 €9,583 mn% of total 28%
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.
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
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%
Europe(excluding Germany)
40%
NAFTA20%
Asia11%
Other countries
8%
Germany24%
Europe(excluding Germany)
30%
NAFTA22%
Asia19%
Other countries
5%
© Continental AG Fact Book 2013 | 11
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%
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
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%
© Continental AG Fact Book 2013 | 12
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
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
© Continental AG Fact Book 2013 | 13
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
© Continental AG Fact Book 2013 | 14
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%
Europe(excluding Germany)
34%
NAFTA18%
Asia14%
Other countries
5%Germany
24%
Europe(excluding Germany)
30%
NAFTA22%
Asia19%
Other countries
5%
Rest of world45%
NAFTA25%
Asia30%
Sales in 2013: €33.3 bnSales in 2009: €20.1 bn
≥
© Continental AG Fact Book 2013 | 15
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.
© Continental AG Fact Book 2013 | 16
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
© Continental AG Fact Book 2013 | 17
II. Continental Strategy – Great People Culture Great People Culture
23
24
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
© Continental AG Fact Book 2013 | 18
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
© Continental AG Fact Book 2013 | 19
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
© Continental AG Fact Book 2013 | 20
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%
© Continental AG Fact Book 2013 | 21
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
© Continental AG Fact Book 2013 | 22
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
› Electronic stability control (ESC)
› mandatory since 2011 for all new light vehicles5
› Tire pressure monitoring system (TPMS)
› mandatory as of Sept. 2007 for all new light vehicles6
USA
› Electronic stability control (ESC)
› 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).
› Electronic stability control (ESC)
› mandatory as of Jan. 2012 for all new light vehicles11
› Tire pressure monitoring system (TPMS)
› 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
› Electronic stability control (ESC)
› mandatory as of Jan. 2014 for all new types of light vehicles
› mandatory as of Jan. 2016 for all new light vehicles8
› Tire pressure monitoring system (TPMS)
› mandatory as of Jan. 2016 for all new types of light vehicles8
Other emerging markets likely to follow EU/USA on ESC regulation
© Continental AG Fact Book 2013 | 23
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
© Continental AG Fact Book 2013 | 24
› 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
© Continental AG Fact Book 2013 | 25
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
© Continental AG Fact Book 2013 | 26
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
December 1 to end of February
December 1 to end of February
November 1 to April 1
December 1 to March 31 when
winter weather conditions prevail
Mandatory when winter weather
conditions prevail November 1 to March 31
November 15 to March 15 when
winter weather conditions prevail
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.
November 15 to March 31 when
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
winter weather conditions prevail
Luxembourg
Mandatory when winter
weather conditions prevail
Macedonia
November 15 to March 15 when
winter weather conditions prevail
Serbia
November 1 to April 1
Russia
Mandatory when winter
weather conditions prevail Iceland
November 15 to April 1
Spain
Bulgaria
Mandatory when winter
weather conditions prevail
Ukraine
November 1 to March 31
© Continental AG Fact Book 2013 | 27
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
© Continental AG Fact Book 2013 | 28
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
© Continental AG Fact Book 2013 | 29
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
© Continental AG Fact Book 2013 | 30
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
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
© Continental AG Fact Book 2013 | 31
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
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.
FY Sales €33,331 mn
Adj. EBIT1 €3,737 mn
1
FY Sales €32,736 mn
Adj. EBIT1 €3,612 mn
© Continental AG Fact Book 2013 | 32
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)
© Continental AG Fact Book 2013 | 33
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
© Continental AG Fact Book 2013 | 34
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
© Continental AG Fact Book 2013 | 35
59
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
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
© Continental AG Fact Book 2013 | 36
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
Europe North America
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
Europe North America
Japan China
Source: Continental estimates.1 Based on production of transmissions for passenger cars and light vehicles.
© Continental AG Fact Book 2013 | 37
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
Europe North America
Japan China
Source: Continental estimates.
© Continental AG Fact Book 2013 | 38
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.
Europe North America
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
© Continental AG Fact Book 2013 | 39
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)
Source: Continental estimates.
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.
© Continental AG Fact Book 2013 | 40
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.
© Continental AG Fact Book 2013 | 41
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
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
© Continental AG Fact Book 2013 | 42
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
EBIT adjusted1 1,601.5 1,592.9
in % of sales1 8.2 8.0
Operating assets (average) 11,427.2 11,438.5 10,958.9
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
thereof impairment4 22.8 75.0 127.8
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
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).
© Continental AG Fact Book 2013 | 43
VI. Automotive GroupSales by Markets
75
Germany31%
Europe(excluding Germany)
28%
NAFTA18%
Asia18%
Other countries
5%
Germany28%
Europe(excluding Germany)
26%
NAFTA20%
Asia22%
Other countries
4%
Germany26%
Europe(excluding Germany)
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
LTS (bn €) Book-to-bill
7.4
8.2 8.3
1.2 1.3 1.3
2011 2012 2013
LTS (bn €) Book-to-bill
© Continental AG Fact Book 2013 | 44
77
Topics
Continental at a GlanceI. 3
Continental StrategyII. 15
Continental MegatrendsIII. 25
Continental CorporationIV. 51
Market DataV. 60
Automotive Group – Chassis & Safety DivisionVI. 78
Rubber GroupVII. 106
Sustainability at ContinentalVIII. 132
Share and Bond InformationIX. 142
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
© Continental AG Fact Book 2013 | 45
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
Operating assets (average) 4,024.7 4,097.4 4,032.6
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
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
© Continental AG Fact Book 2013 | 46
VI. Chassis & SafetySales by Markets
81
Germany35%
Europe(excluding Germany)
26%
NAFTA16%
Asia20%
Other countries
3%
Germany29%
Europe(excluding Germany)
23%
NAFTA19%
Asia25%
Other countries
4%
Germany26%
Europe(excluding Germany)
20%
NAFTA22%
Asia29%
Other countries
3%
Sales in 2011: €6.5 bn Sales in 2013: €7.3 bnSales in 2009: €4.4 bn
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
© Continental AG Fact Book 2013 | 47
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
Source: Continental estimates.
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
Source: Continental estimates.
© Continental AG Fact Book 2013 | 48
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
Source: Continental estimates.
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
Source: Continental estimates.
© Continental AG Fact Book 2013 | 49
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)
Source: Continental estimates.
88
Topics
Continental at a GlanceI. 3
Continental StrategyII. 15
Continental MegatrendsIII. 25
Continental CorporationIV. 51
Market DataV. 60
Automotive Group – Powertrain DivisionVI. 89
Rubber GroupVII. 106
Sustainability at ContinentalVIII. 132
Share and Bond InformationIX. 142
GlossaryX. 151
© Continental AG Fact Book 2013 | 50
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
Europe France▐ Boussens
▐ 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
© Continental AG Fact Book 2013 | 51
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
EBIT adjusted1 297.4 317.9
in % of sales1 4.8 5.1
Operating assets (average) 3,027.4 3,028.1 2,936.9
ROCE (average) in % 1.0 1.6 6.1
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
Depreciation & amortization3 453.4 560.7 470.7
in % of sales 7.8 9.1 7.5
thereof impairment4 8.5 75.9 38.9
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly. 91
VI. PowertrainSales by Markets
92
Germany28%
Europe(excluding Germany)
30%
NAFTA20%
Asia21%
Other countries
1%
Germany24%
Europe(excluding Germany)
33%
NAFTA21%
Asia21%
Other countries
1%
Germany22%
Europe(excluding Germany)
28%
NAFTA24%
Asia25%
Other countries
1%
Sales in 2011: €5.8 bn Sales in 2013: €6.3 bnSales in 2009: €3.4 bn
© Continental AG Fact Book 2013 | 52
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
94Source: Continental estimates.1
For passenger cars & light trucks.
Europe
North America
South America
Asia/Pacific
World
Continental
Bosch
Hitachi
Continental
Bosch
Denso
Bosch
Delphi
Magneti Marelli
Continental
Bosch
Denso
Continental
Bosch
Denso
Market share of all suppliers other than top 3
All others
Continental
All others
All others
All others
All others
© Continental AG Fact Book 2013 | 53
VI. PowertrainMarket Position for Transmission Control Units1 2013
95Source: Continental estimates.1
For passenger cars & light trucks.
Europe
North America
Asia/Pacific
World
Continental
Bosch
ZF Electronics
Continental
Bosch
Delphi
Continental
Bosch
Denso
Continental
Bosch
Denso
Market share of all suppliers other than top 3
All others
All others
All others
All others
96
Topics
Continental at a GlanceI. 3
Continental StrategyII. 15
Continental MegatrendsIII. 25
Continental CorporationIV. 51
Market DataV. 60
Automotive Group – Interior DivisionVI. 97
Rubber GroupVII. 106
Sustainability at ContinentalVIII. 132
Share and Bond InformationIX. 142
GlossaryX. 151
© Continental AG Fact Book 2013 | 54
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
Europe France▐ Boussens
▐ 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
© Continental AG Fact Book 2013 | 55
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
EBIT adjusted1 583.1 585.3
in % of sales1 9.1 8.9
Operating assets (average) 4,375.1 4,313.0 3,989.4
ROCE (average) in % 7.6 9.6 9.5
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
Depreciation & amortization3 427.6 439.8 469.6
in % of sales 7.0 6.8 7.1
thereof impairment4 12.7 1.1 47.5
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
VI. InteriorSales by Markets
100
Germany31%
Europe(excluding Germany)
28%
NAFTA20%
Asia14%
Other countries
7%
Germany31%
Europe(excluding Germany)
24%
NAFTA19%
Asia19%
Other countries
7%
Germany29%
Europe(excluding Germany)
21%
NAFTA23%
Asia21%
Other countries
6%
Sales in 2011: €6.1 bn Sales in 2013: €6.6 bnSales in 2009: €4.4 bn
© Continental AG Fact Book 2013 | 56
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
Source: Continental estimates.
VI. InteriorMarket Position for Instrumentation & Driver HMI1 2013
102Source: Continental estimates.1
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
© Continental AG Fact Book 2013 | 57
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
Market share of all suppliers other than top 3
Continental
All others
All others
All others
Continental
All others
Continental
All others
Source: Continental estimates.
VI. InteriorMarket Position for Commercial Vehicle1 2013
104Source: Continental estimates.1
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
Market share of all suppliers other than top 3
All others
All others
All others
All others
All others
© Continental AG Fact Book 2013 | 58
105
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
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
EBIT adjusted1 2,091.6 2,256.0
in % of sales1 15.8 17.1
Operating assets (average) 4,640.3 5,590.7 5,913.3
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
Depreciation & amortization3 428.7 443.9 499.2
in % of sales 3.5 3.3 3.7
thereof impairment4 -2.4 -25.1 -1.1
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
© Continental AG Fact Book 2013 | 59
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%
Europe(excluding Germany)
44%
NAFTA17%
Asia8%
Other countries
5%
Germany24%
Europe(excluding Germany)
43%
NAFTA18%
Asia9%
Other countries
6%
Germany21%
Europe(excluding Germany)
40%
NAFTA20%
Asia11%
Other countries
8%
Sales in 2011: €12.2 bn Sales in 2013: €13.4 bnSales in 2009: €8.1 bn
© Continental AG Fact Book 2013 | 60
109
Topics
Continental at a GlanceI. 3
Continental StrategyII. 15
Continental MegatrendsIII. 25
Continental CorporationIV. 51
Market DataV. 60
Automotive GroupVI. 73
Rubber Group – Tires DivisionVII. 110
Sustainability at ContinentalVIII. 132
Share and Bond InformationIX. 142
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
© Continental AG Fact Book 2013 | 61
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
EBIT adjusted1 1,640.3 1,790.7
in % of sales1 17.0 18.7
Operating assets (average) 3,561.5 4,430.8 4,645.8
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
Depreciation & amortization3 330.8 338.6 385.0
in % of sales 3.8 3.5 4.0
thereof impairment4 -3.2 -25.1 -1.3
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly. 111
VII. TiresSales by Markets
112
Germany18%
Europe(excluding Germany)
46%
NAFTA22%
Asia7%
Other countries
7% Germany17%
Europe(excluding Germany)
43%
NAFTA23%
Asia9%
Other countries
8%
Sales in 2011: €8.7 bn Sales in 2013: €9.6 bn
© Continental AG Fact Book 2013 | 62
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
Market share of all suppliers other than top 3
Continental
All others
All others
Source: Continental estimates.1
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
Bridgestone/ Firestone
Goodyear/ Sumitomo
Michelin
Bridgestone/ Firestone
Goodyear/ Sumitomo
Michelin
Continental
All others
Continental
All others
Source: Continental estimates.1
Replacement.2
West and Central, incl. Turkey. Market share of all suppliers other than top 3
© Continental AG Fact Book 2013 | 63
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)
© Continental AG Fact Book 2013 | 64
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.
© Continental AG Fact Book 2013 | 65
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
© Continental AG Fact Book 2013 | 66
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
Continental at a GlanceI. 3
Continental StrategyII. 15
Continental MegatrendsIII. 25
Continental CorporationIV. 51
Market DataV. 60
Automotive GroupVI. 73
Rubber Group – ContiTech DivisionVII. 123
Sustainability at ContinentalVIII. 132
Share and Bond InformationIX. 142
GlossaryX. 151
© Continental AG Fact Book 2013 | 67
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%
© Continental AG Fact Book 2013 | 68
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
EBIT adjusted1 451.3 465.3
in % of sales1 12.2 12.4
Operating assets (average) 1,078.8 1,159.9 1,267.5
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
Depreciation & amortization3 97.9 105.3 114.2
in % of sales 2.7 2.8 2.9
thereof impairment4 0.8 0.0 0.2
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
IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly.
VII. ContiTechSales by Markets
126
Germany41%
Europe(excluding Germany)
33%
NAFTA7%
Asia13%
Other countries
6%
Germany38%
Europe(excluding Germany)
35%
NAFTA8%
Asia13%
Other countries
6%
Germany33%
Europe(excluding Germany)
31%
NAFTA12%
Asia16%
Other countries
8%
Sales in 2011: €3.6 bn Sales in 2013: €3.9 bnSales in 2009: €2.4 bn
© Continental AG Fact Book 2013 | 69
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
© Continental AG Fact Book 2013 | 70
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 €)
© Continental AG Fact Book 2013 | 71
131
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
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”.
© Continental AG Fact Book 2013 | 72
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
© Continental AG Fact Book 2013 | 73
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 AG Fact Book 2013 | 74
› 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.
© Continental AG Fact Book 2013 | 75
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.
© Continental AG Fact Book 2013 | 76
141
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
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.
© Continental AG Fact Book 2013 | 77
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
© Continental AG Fact Book 2013 | 78
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
© Continental AG Fact Book 2013 | 79
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.
© Continental AG Fact Book 2013 | 80
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
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
© Continental AG Fact Book 2013 | 81
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
© Continental AG Fact Book 2013 | 82
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
© Continental AG Fact Book 2013 | 83
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
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