HSBC Capital Goods Conference 2014 London – September 3rd

Transcription

HSBC Capital Goods Conference 2014
London – September 3rd, 2014
Nikolai Setzer
Member of the Executive Board
Tire Division
http://www.continental-ir.com
AGENDA
1 Corporation Highlights
3
2 Automotive Group
10
3 Rubber Group
12
4 Indebtedness and Cash Flow
16
5 Outlook
19
6 Back-up & Fact Sheets 2012 - 2014
29
EDMR – Equity and Debt Markets Relations
2
1) Corporation Highlights
M t Important
Most
I
t t KPIs
KPI H1 2014
›
Sales up by 2% to €16.9 bn; organic sales growth at 6% (neg. FX impact €~600 mn)
›
Adj. EBIT1 up by 10% to €1.96 bn; adj. EBIT1 margin at 11.6% up 80 bps
(PPA and special effects -€145 mn)
›
NIAT2 up by 14% to €1.3 bn
›
Free cash flow amounted to €575 mn mainly due to higher EBIT, lower cash interest
and strong working capital management
›
Net indebtedness down to €4.3
€4 3 bn; gearing ratio at 42%; equity ratio at 36%
›
Accelerated value creation: trailing ROCE3 up by 220 bps to 20.8%
Other topics:
›
Acquisition of the remaining shares in EMITEC caused an impairment loss on the
previous carrying amount of €35 mn
›
Recognition of deferred tax assets on interest carry forwards in Germany
amounting to €98 mn
›
Latest retail acquisition in France improves market coverage to >400 controlled outlets
1
Before amortization of intangibles from PPA, consolidation and special effects
Attributable to the shareholders of the parent
3
Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets (OA) for the LTM
2
3
Di i i
Divisional
l Hi
Highlights
hli ht H1 2014
Au
utomotiv
ve Group
› Chassis & Safety at 9.2% adj. EBIT1 margin (PY: 9.4%); organic sales up by 6% (Q2/14
+4%); strong growth in ADAS continued (+50% unit sales),
sales) R&D cost up by 13% in H1/14
› Powertrain at 5.2% adj. EBIT1 margin (PY: 4.9%); organic sales increased by 5%
(Q2/14 +3%)
› Interior at 10
10.3%
3% adj
adj. EBIT1 margin (PY: 8.7%);
8 7%); organic sales increased by 9%
(Q2/14 +6%) due to strong business activity in B&S and CV&AM
› Automotive Group sales increased organically by 7% in H1/14 (Q2/14 +5%), outgrowing
worldwide PC & LT production by 400 bps; adj.
adj EBIT1 margin increased by 60 bps to 8.4%;
8 4%;
R&D ratio is expected to slightly decrease in the course of H2/14 (8.9% in H1/14);
solid development of order intake in H1/14
Rubber G
R
Group
› Tires
Ti
adj.
dj EBIT1 margin
i increased
i
d tto 19.8%
19 8% (PY
(PY: 17.4%)
17 4%) b
benefitting
fitti ffrom llower raw material
t i l
costs (H1/14: ~€110 mn), strict cost management and solid price mix (was balanced in
H1/14); volumes up by 6% in H1/14 (Q2: +3%); FX effects impacted sales (-4% in H1/14);
PC & LT tire replacement
p
demand increased in Europe
p by
y 5% and was up
p by
y 6% in NAFTA
in H1/14; solid order intake on winter tires indicates early sell in season 2014
› ContiTech adj. EBIT1 margin down by 100 bps to 11.4%; organic sales up by 2%
(Q2/14: -1%)
› Rubber Group organic sales increased by 4% (Q2/14: +2%); adj. EBIT1 margin
increased to 17.5% in H1 2014 (PY: 16.0%)
1
4
S l and
Sales
d Adj
Adjusted
t d EBIT1 by
b Q
Quarter
t
FY Sales €32,736
€32 736 mn
FY Sales €33,331
€33 331 mn
H1 Sales €16,918 mn
Adj. EBIT1 €1,958 mn
8,541 8,350 8,407 8,390 8,528
8,320 8,187 8,134 8,096
,
,
8,033
980
953
1 005
1,005
796
Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14
1
Sales (mn €)
1
Adj. EBIT (mn €)
5
S l and
Sales
d Adj
Adjusted
t d EBIT1 by
b G
Group
Automotive Group
1
Sales (mn €)
1
Adj. EBIT (mn €)
1
3,362
3
Q4
4/14
Q3
3/14
2/14
Q2
Q4
4/13
Q3
3/13
2/13
Q2
Q1/13
Q4
4/12
Q3
3/12
2/12
Q2
Q1/12
Q4
4/14
Q3
3/14
2/14
Q2
Q1/14
Q4
4/13
Q3
3/13
2/13
Q2
Q1/13
Q4
4/12
Q3
3/12
2/12
Q2
Q1/12
351
476
423 442
Q1/14
558 590
570
430
3,271
3
3,417
3,415
3,392
3,132
3,372
3,378
3,256
3
3,255
3
5,176
6
5,129
9
5,000
Adj. EBIT (mn €)
4,945
5,160
0
4,911
4,733
4,764
4,937
5,071
Sales (mn €)
Rubber Group
6
G
Growth
th Profile
P fil off th
the C
Corporation
ti H1 2014 (i
(in %)
PC & LT prod
prod.
growth Europe
11
1.1
According to IMF (July 2014)
Commercial
Vehicle Tires
volume growth
Replacement
R
l
t
tire volume
growth NAFTA
8
6
9
Mark
ket
Replacement
tire volume
growth Europe
Conti
6
Mark
ket
Replacement
R
l
t
tire volume
growth NAFTA
5
Conti
Replacement
tire volume
growth Europe
6
4
GDP growth 1
Eurozone 2014
1
Passenger &
Light Truck Tires
volume growth
2
Markett
4
ContiTech
organic sales
growth
C
Conti
PC & LT prod.
growth EU/NAFTA
3
Markett
PC & LT prod
prod.
growth ww
7
C
Conti
Conti Automotive
Group organic
sales growth
7
S t i bl V
Sustainable
Value
l C
Creation
ti
18.8% 18.5% 18.6%
8 6%
20.8%
19.4% 19.4% 20.6%
16,272
2
16,627
7
16,934
4
16,954
4
17,014
4
17,008
8
16,915
5
16,804
4
16,625
5
16,522
2
17.9% 18.1%
16.8% 17.6%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
1
trailing OA (mn €)
1
2
2013
2
trailing ROCE (%)
Q3
Q4
2014
trailing ROCE (%) applying IAS 19 (rev. 2011)
Trailing operating assets are calculated as assets for the last twelve months (LTM)
Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets (OA) for the LTM
8
M t iti 1 for
Maturities
f Syndicated
S di t d L
Loan2 and
dB
Bonds
d ((mn €)
FY 13
H1 14
Syndicated
y
Loan
Gross indebtedness
6,638
6,534
Bonds
Cash
2,045
1,919
Net indebtedness
4,289
4,273
Available credit lines
3,833
3,928
Total liquidity
5,878
5,848
((mn €))
1,500
2014
1
2
3
4
2015
2016
4
750
750
696
750
2017
2018
2019
2020
All amounts shown are nominal values
Syndicated loan maturities – Term loan April 2016 and Revolving Credit Facility (RCF) April 2019
Any utilization under the RCF has to be shown as short term debt according to IFRS although the RCF matures in 04/19 and has a total volume of €3,000 mn
Nominal amount US $950 mn (exchange rate as at June 30, 2014: 1.3651)
9
2) Automotive Group
B
Benefitting
fitti ffrom Stabilization
St bili ti in
i European
E
Production
P d ti
Automotive Group
p Sales ((mn €))
5,160
4,945
5,000
5,129
5,176
Adj.j EBIT1 ((mn €)) and Adj.j EBIT1 Margin
g
430
442
8.4%
8.5%
+172
Q2/13
›
›
›
›
1
2
Q3/13
Q4/13
+12
Q1/14
Q2/14
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Sales increased by €172 mn in Q2/14; organic sales growth in Q2/14 at 4.6%
Adjusted EBIT1 increased by €12 mn
Adjusted EBIT1 margin at 8.5% (PY: 8.4%)
R&D expenses increased by 9
9.0%
0% to €453 mn
Differences may occur due to rounding differences
10
2) Automotive Group
Adj EBIT1 Margin
Adj.
M i up b
by 60 b
bps
Automotive Group
p Sales ((mn €)) H1/14
3,433
8.9%
- 52
Automotive Group
p Adj.j EBIT1 ((mn €)) H1/14
10,305
354
6.7%
10.3%
3,178
865
0
8.4%
cons.
Automotive
Group
165
4.5%
346
3,747
5.2%
9.2%
6.4%
1
Adj. EBIT margin (%)
Organic sales growth (%)
Chassis Powertrain
& Safety
Interior
cons.
Automotive
Group
Chassis Powertrain
& Safety
Interior
Reported sales change
›
›
›
›
1
Chassis & Safety:
2.5%
Powertrain:
1.4%
Interior:
2.7%
Automotive Group:
2.3%
›
›
›
›
Reported EBITDA: €1,246 mn (12.1% of sales)
Reported EBIT: €721 mn (7.0% of sales)
R&D: €921 mn (8.9% of sales)
Capex: €389 mn (3.8% of sales)
11
3) Rubber Group
Adjusted EBIT1 Margin Profiting
f
from
f
Raw Material Prices
Rubber Group Sales (mn €)
3,392
3,415
3,417
3,271
Adj.j EBIT1 ((mn €)) and Adj.j EBIT1 Margin
g
3,362
590
570
17.8%
16.8%
-30
Q2/13
Q3/13
Q4/13
+20
Q1/14
Q2/14
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
› Sales decreased by €30 mn in Q2/14
› Tire volumes grew by 3% during the quarter; F/X had a negative effect on tire revenues of about 4% while
›
›
1
P/M was neutral in Q2/14
Sales at ContiTech decreased by 0.9% organically during the quarter due to sharp decrease in conveyor
b lti (CB) sales
belting
l
Adjusted EBIT1 up by €20 mn mainly due to lower raw material cost and strong cost management
12
3) Rubber Group
P fit bilit R
Profitability
Remains
i att El
Elevated
t dL
Levell
Rubber
ubbe Group
G oup Sa
Sales
es ((mn €) H1/14
/
4,724
4.9%
Rubber
ubbe Group
G oup Adj.
dj EBIT1 ((mn €) H1/14
/
6,633
- 43
4 3%
4.3%
ContiTech
1,148
17 5%
17.5%
19.8%
1 952
1,952
1.8%
0
927
221
Organic sales growth (%)
Tires
cons.
11.4%
Rubber Group
ContiTech
1
Adj. EBIT margin (%)
Tires
cons.
Rubber Group
Reported
p
sales change
g
› ContiTech:
› Tires:
› Rubber Group:
1
0.6%
1.8%
1 7%
1.7%
›
›
›
›
Reported EBITDA: €1,414 mn (21.3% of sales)
Reported EBIT: €1,143 mn (17.2% of sales)
R&D: €152 mn (2.3%
(2 3% of sales)
Capex: €404 mn (6.1% of sales)
13
3) Rubber Group
St bili ti in
Stabilization
i Demand
D
d Continues
C ti
Replacement Tire Demand
for PC & LT NAFTA
20%
15%
15%
10%
10%
5%
5%
0%
0%
-5%
-5%
-10%
-10%
-15%
-15%
-20%
-20%
Jan-09
Aprr-09
Jul-09
Oct-09
Jan-10
Aprr-10
Jul-10
Oct-10
Jan-11
Aprr-11
Jul-11
Oct-11
Jan-12
Aprr-12
Jul-12
Oct-12
Jan-13
Aprr-13
Jul-13
Oct-13
Jan-14
Aprr-14
20%
Jan
n-09
Aprr-09
Jull-09
Octt-09
Jan
n-10
Aprr-10
Jull-10
Octt-10
Jan
n-11
Aprr-11
Jull-11
Octt-11
Jan
n-12
Aprr-12
Jull-12
Octt-12
Jan
n-13
Aprr-13
Jull-13
Octt-13
Jan
n-14
Aprr-14
for PC & LT Europe
PC & LT Tire Replacement (YOY chg. monthly)
PC & LT Tire Replacement (YOY chg. monthly)
1
Vehicle miles YOY chg. monthly (DOT)
1
U.S. Department of Transportation
14
3) Rubber Group
E
Expected
t dR
Raw M
Material
t i lP
Price
i D
Development
l
t iin 2014 - Update
U d t
Natural
atu a rubber
ubbe p
price
ce ((TSR
S 20)
0)
expected to average US $2.10
in 2014 (before: US $2.30)
600
€160 mn tailwind from natural and
synthetic rubber cost expected for
2014 (prior forecast: €80 mn
tailwind)
400
1
208
182
215
235
Q4/14E
Q3/14E
Q2/14
Q4/13
Q3/13
Q2/13
Q1/13
Q4/12
Q3/12
Q2/12
Q1/12
Q4/11
Q1/14
142
134
145
155
TSR 20 US cents/kg
g
Q3/11
Q2/11
Q1/11
Q4/10
0
Q3/10
However, we expect rubber prices
However
to increase in the course of 2014 as
demand further stabilizes;
butadiene prices are already
trading above Q3 13 levels
100
Q2/10
›
200
Q1/10
Oil-based chemicals and textiles to
increase YOY
300
Q4/09
›
500
Q3/09
›
Synthetic rubber price (butadiene
feedstock) forecasted to average
US $1.44 in 2014
Average (Y)
Average (Y)
Average (Y)
Average (Y)
Average (Y)
Average (Y)
TSR 20: 189
TSR 20: 345
TSR 20: 463
TSR 20: 326
TSR 20: 259
TSR 20: 210
Butadiene: 100 Butadiene: 191 Butadiene: 297 Butadiene: 244 Butadiene: 148 Butadiene: 144
Q2/09
›
Raw Material Price Development1 2009 - 2014E
Q1/09
›
Butadiene US cents/kg
g
Source: Bloomberg and Continental estimates for 2014
15
4) Indebtedness and Cash Flow
N t Indebtedness
Net
I d bt d
B
Bridge
id
294
578
(mn €)
827
87
796
500
4 289
4,289
1
4,273
46%
%
Net
inde
ebtednesss
(H
H1 2014)
Other CF
Depr. and
am
mortization
C
Change
in
payabless
C
Change
in
n
in
nventorie
es
C
Change
in
n
re
eceivable
es
ex 1
Cape
Dividend
2013
42%
Net
inde
ebtednesss
(F
FY 2013)
Gearing
ratio
1 332
1,332
€785 mn change
in working capital
According to cash flow statement including intangible assets
16
D
Development
l
t off Net
N t Indebtedness
I d bt d
and
dG
Gearing
i R
Ratio
ti
Net indebtedness (mn €)
91%
88%
Gearing ratio (%)
87%
65%
64%
69%
62%
6,802
6
5,320
5
5,613
5
6,012
6
5,590
5
4,289
4
4,242
4
4,273
4
42%
6,876
6
43%
6,841
6
46%
Q1
H1
9M
YE
Q1
H1
9M
YE
Q1
H1
2012
2013
2014
17
C h Fl
Cash
Flow O
Overview
i
Cash Flow H1/13 and H1/14 (mn €)
2013
1,444
624
2014
575
-88
-713
CF ffrom operating
ti
activities
-869
CF used
d ffor investing
i
ti
activities
Free cash
F
h
flow
18
5) Outlook
P
Passenger
Car
C & Li
Light
ht T
Truck
kP
Production
d ti b
by Q
Quarter
t
Europe (mn units)
15%
7%8%
3%
5%6%
8%
Europe
chg. YOY
2012: 15.4
2013: 16.2
2014E:
17.0
26%
1%0%0%
Q
Q1/11
Q2/11
Q
Q3/11
Q
Q4/11
Q
Q1/12
Q
Q2/12
Q
Q3/12
Q
Q4/12
Q
Q1/13
Q
Q2/13
Q
Q3/13
Q
Q4/13
Q
Q1/14
Q
Q2/14E
Q3/14E
Q4/14E
-2%
2%-3%
-3%
-6%-7%
-8%
2011: 13.1
3.374
3.169
3.185
3.436
64
3.96
3.987
7
3.667
3.82
22
4.0
015
4.258
3.88
83
4.0
022
4.205
4.401
4
4..230
4.1
120
2014E:
19.9
2013: 19.5
18%
16%
15%
11%
9%
7%
7%6%5%
5%3% 2%
3%
1%
16%
Q
Q1/11
Q2/11
Q
Q3/11
Q
Q4/11
Q
Q1/12
Q
Q2/12
Q
Q3/12
Q
Q4/12
Q
Q1/13
Q
Q2/13
Q
Q3/13
Q
Q4/13
Q
Q1/14
Q
Q2
2/14E
Q3/14E
4/14E
Q4
2012: 19.3
5.3
399
5.33
30
4.681
4.818
55
5.25
5.016
6
4
4.353
4.675
4.821
5.154
4.564
4.955
5.210
99
5.19
4.550
4.940
2011: 20.2
NAFTA (mn units)
NAFTA
chg. YOY
Source: IHS and Continental estimates for 2014
19
5) Outlook
M k t Outlook
Market
O tl k ffor M
Major
j R
Regions
i
2014
PC & LT1 Production (mn units)
2013
19 9
19 5 19.9
19.5
2014E
17 0
16.2 17.0
2%
E
Europe
42.7 44.3
4.0
South
S
th
America
A i
Asia
PC & LT Repl.
p 3 Tire Market ((mn units))
310 319
2014E
NAFTA
250 220
South
S
th
America
A i
Asia
71.0 73.9
2014E
294 313
264 272
NAFTA
465 514
1,893 1,930
CV Repl.4 Tire Market (mn units)
2013
22.8 23.9
19.7 20.9
Europe
NAFTA
64
63
Europe
E
Europe
2014E
2013
2013
577 559
4.5
NAFTA
Commercial Vehicle2 Prod. (k units)
South
America
Source: LMC and Continental estimates for 2014
Asia
13.3 12.9
South
America
Asia
Source: LMC and Continental estimates for 2014
1
Passenger car & light truck <6t
Heavy vehicles >6t
3
Passenger car & light truck replacement
4
Commercial vehicle replacement (radial & biased)
2
20
5) Outlook
C ti
Continental
t l 20141
2013
1
2
2014E
Consolidated sales &
adj. EBIT2 margin
€33.3 bn
11.3%
To increase to around €34.5 bn (incl. €1 bn neg. FX)
Adj. EBIT2 margin ~11%
Automotive Group
p
adj. EBIT2
€20.0 bn
€1.6 bn
Sales to increase to around €20.8 bn
Adj. EBIT2 margin >8%
Rubber Group
adj. EBIT2
€13.4 bn
€2.3 bn
Sales to increase to around €13.8bn
Adj. EBIT2 margin >16%
Raw material cost
impact
Relief of about
€400 mn
S
Special
effects
ff
-€105
€
mn
Net interest expense
Tax rate
€804 mn
18%
%
<€400 mn
<25%
%
Capex
PPA amortization
€2.0 bn
€371 mn
Capex at around 6% of sales
PPA will amount to ~€190 mn
Free cash flow
€1.8 bn
>€1.5 bn before acquisitions
€160 mn tailwind expected for Rubber Group in 2014
About -€100
€
mn
Potential effects from first time consolidation of Veyance Technology, Inc. are not included
Before amortization of intangibles from PPA, consolidation (2013 in comparison to 2012) and special effects
21
Thank y
you for y
your attention!
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22
Disclaimer
› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the HSBC Capital
Goods Conference 2014 in London on September 3rd, 2014. It has not been independently verified. It does not
constitute an offer,
offer invitation or recommendation to purchase or subscribe for any shares or other securities issued by
Continental AG or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection
with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.
› Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents
or otherwise arising in connection with this presentation.
› This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including
statements about our beliefs and expectations regarding future developments as well as their effect on the results of
Continental. These statements are based on plans, estimates and projections as they are currently available to the
management of Continental. Therefore, these statements speak only as of the date they are made, and we
undertake no obligation to update publicly any of them in light of new information or future events. Furthermore,
although
g the management
g
is of the opinion
p
that these statements,, and their underlying
y g beliefs and expectations,
p
, are
realistic or of the date they are made, no guarantee can be given that the expected developments and effects will
actually occur. Many factors may cause the actual development to be materially different from the expectations
expressed here. Such factors include, for example and without limitation, changes in general economic and business
conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack
of acceptance for new products or services and changes in business strategy.
› 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,
Consequently,
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.
23
Contact
E it and
Equity
dD
Debt
bt Markets
M k t R
Relations
l ti
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Klaus Paesler
Phone: +49 511 938 1316
e-mail: klaus.paesler@conti.de
Rolf Woller
Phone: +49 511 938 1068
e-mail: rolf.woller@conti.de
Sabine Reese
Phone: +49 511 938 1027
e-mail: sabine.reese@conti.de
Ingrid Kampf
Phone: +49 511 938 1163
F
Fax:
+49
49 511 938 1080
e-mail: ir@conti.de
www.continental-ir.com
Michael Saemann
Phone: +49 511 938 1307
e-mail:
il michael.saemann@conti.de
i h l
@
ti d
Henry Schniewind
Phone: +49 511 938 1062
e-mail: henry.schniewind@conti.de
24
Continental
Fi
Financial
i lC
Calendar
l d
2014
Annual Financial Press Conference
March 6, 2014
Annual Shareholders’ Meeting
April 25, 2014
Q1 Financial Report
May 6,
6 2014
Half-Year Financial Report
July 31, 2014
Nine Month Financial Report
November 4, 2014
2015
Annual Financial Press Conference
March 5, 2015
Annual Shareholders’ Meeting
April 30, 2015
Q1 Financial Report
May 2015
Half-Year Financial Report
August 2015
Nine Month Financial Report
November 2015
25
Continental
Sh
Share
D
Data
t / ADR D
Data
t
Share Data
T
Type
off share
h
N
No-par
value
l share
h
Bloomberg Ticker
CON
Reuters Ticker
CONG
German Security Identification Number (WKN)
543 900
ISIN Number
DE0005439004
Sh
Shares
outstanding
t t di as att June
J
30,
30 2014
200 005 983
200,005,983
ADR Data
Ratio (ordinary share: ADR)
1:5
Bloomberg Ticker
CTTAY
Reuters Ticker
CTTAY PK
CTTAY.PK
ISIN Number
US2107712000
ADR Level
Level 1
Exchange
OTC
Sponsor
Deutsche Bank Trust Company Americas
26
Continental
Bond Data
Issuer
Conti-Gummi Finance B.V.,
Netherlands1
Continental AG
Continental Rubber of
America, Corp., USA1
Continental AG
Issue
Senior Notes
Senior Notes
Senior Notes
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 (Fitch2)
Ba2 (Moody’s)
BB (S&P)
BB (Fitch2)
Ba3 (Moody’s)
BB (S&P)
BBBB (Fitch2)
Ba1 (Moody’s)
BB (S&P)
BBB (Fitch2)
Current corporation
and bond rating3
Baa3 (Moody’s), BBB (S&P), BBB (Fitch)
Coupon
2 5% p
2.5%
p.a.
a
3 0% p
3.0%
p.a.
a
4 5% p
4.5%
p.a.
a
3 125% p
3.125%
p.a.
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 payment
Annual
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
amount €1,000
$1,000 with min. tradable
amount $150,000
amount €1,000
1
2
3
Guaranteed by Continental AG only since April 24, 2014
Unsolicited rating at date of issuance
Fitch since Jul. 15, 2013; Moodyʼs since Sept. 19, 2013; S&P since Dec. 6, 2013
27
Back-up
28
6) Back-up
O
Overview
i
off Volume
V l
D
Development
l
t
Units (YOY change)
Market data for PC & LT production
EU
NAFTA
EU and NAFTA combined
Worldwide
Continental
Electronic stability control (ESC)
Anti locking brake (ABS)
Boosters
p
Calipers
Advanced driver assistent systems (ADAS)
Engine electronic control units (ECUs)
Injectors
Transmissions
Turbochargers
Market data tires
PC& LT replacement tires Europe
PC& LT replacement tires NAFTA
Commercial vehicle tires OE Europe
p
Commercial vehicle tires OE NAFTA
Commercial vehicle replacement tires Europe
Commercial vehicle replacement tires NAFTA
Continental
Passenger and light truck tires
Commercial vehicle tires
ContiTech organic sales growth
Q1/12
H1/12
9M/12
FY 12
Q1/13
H1/13
9M/13
FY 13
Q1/14
H1/14
-3%
18%
5%
9%
-4%
22%
6%
8%
-5%
19%
4%
6%
-5%
17%
4%
6%
-8%
1%
-4%
0%
-3%
4%
0%
2%
-1%
5%
2%
3%
1%
5%
3%
4%
8%
5%
7%
5%
4%
4%
4%
3%
11%
9%
16%
15%
52%
2%
4%
29%
12%
7%
8%
8%
41%
-4%
-4%
25%
11%
0%
4%
6%
52%
-9%
-7%
19%
11%
-4%
4%
6%
57%
-10%
-7%
16%
13%
-24%
-4%
2%
51%
-11%
-10%
4%
296%
14%
-24%
-2%
7%
57%
-8%
-7%
7%
207%
15%
-21%
0%
7%
57%
-4%
-3%
10%
179%
15%
-19%
0%
6%
58%
-1%
-1%
12%
108%
14%
-13%
8%
7%
53%
7%
-3%
8%
64%
12%
-11%
10%
2%
50%
6%
-3%
8%
68%
-10%
-5%
-11%
-3%
-10%
-3%
-8%
-2%
-10%
-2%
-4%
0%
-1%
4%
-1%
4%
6%
7%
5%
6%
-3%
31%
-27%
-10%
-5%
25%
-26%
-9%
-7%
14%
-19%
-6%
-4%
2%
-14%
-2%
-3%
-12%
5%
-1%
0%
-13%
8%
-2%
0%
-9%
9%
-2%
0%
-2%
9%
-2%
1%
6%
15%
9%
-7%
10%
6%
9%
3%
0%
0%
0%
-6%
-1%
1%
2%
9%
6%
0%
4%
2%
3%
2%
2%
2%
2%
-4%
-2%
2%
0%
5%
0%
6%
2%
13%
5%
8%
2%
29
6) Back-up
C
Corporation
ti Hi
Highlights
hli ht H1 2014
› Sales
Increase of 2.1% to €16,918.1 mn (PY: €16,574.3 mn); organic sales up 5.7%
› EBITDA
I
Increase
off 5.1%
5 1% tto €2,605.8
€2 605 8 mn (PY:
(PY €2,479.3
€2 479 3 mn))
› EBIT
Increase to €1,810.1 mn (PY: €1,630.6 mn)
Adjusted EBIT1 increase to €1,958.3 mn (11.6% adjusted EBIT1 margin)
PPA2 effect -€101.8 mn; total special effects -€43.3 mn
› NIAT3
Increase to €1,303.8 mn (PY: €1,141.9 mn)
› EPS
EPS off €6.52
€6 52 (PY:
(PY €5.71)
€5 71)
2
EPS before PPA €6.89 (PY: €6.41 before PPA2)
› Capex
Capex increased to €793.9 mn (PY: €867.0 mn); capex ratio 4.7% of sales;
Capex to depreciation coverage 1.0x (1.1x ex PPA2)
› R&D
Expenses for research and development increased by 8.8% to €1,073.8 mn
(PY: €987.0 mn); R&D ratio 6.3% of sales (PY: 6.0%)
› Cash flow
Operating cash flow up by €819.1 mn to €1,443.5 mn; free cash flow €574.8 mn
› Net
Net indebtedness down by €16.5 mn to €4,272.8 mn (vs. YE 2013)
Liquidity and undrawn credit lines amounted to €5,847.6 mn
i d bt d
indebtedness
1
Amortization of intangibles from PPA, tax rate of 28% applied for EPS calculation
3
Attributable to the shareholders of the parent
2
30
6) Back-up
K Historical
Key
Hi t i l C
Credit
dit M
Metrics
t i – IAS 19 ((rev. 2011) applied
li d6
1
(mn €)
Cash flow statement
2
Adjusted EBITDA
Reported EBITDA
Net cash interest paid
Tax p
paid
Change in net working capital3
Other 4
Cash flow arising from operating activities
Cash flow arising from investing activities
- thereof capex in PPE and intangibles
Cash flow before financing activities
Balance sheet
Cash and cash equivalents
Derivative instruments and interest-bearing investments
Total indebtedness
Net indebtedness
Credit ratios
2
Net indebtedness / adj. EBITDA
5
Net cash interest paid coverage (Ratio)
2009
2010
2011
2012
2013 LTM Q2 2014
2,354
1,591
-727
-205
595
1,173
2,427
-787
-911
1,640
3,662
3,588
-703
-493
-497
-46
1,849
-1 282
-1,282
-1,324
567
4,247
4,228
-662
-466
-556
-256
2,289
-1 798
-1,798
-1,813
491
4,822
4,967
-575
-684
564
-488
3,785
-2 132
-2,132
-2,081
1,653
5,094
5,095
-534
-805
-4
-30
3,722
-1 904
-1,904
-2,024
1,818
5,315
5,222
-396
-737
273
179
4,541
-2 060
-2,060
-1,969
2,481
1,713
1
713
104
10,713
8,896
1,471
1
471
202
8,991
7,317
1,541
1
541
249
8,562
6,772
2,397
2
397
536
8,253
5,320
2,045
2
045
303
6,638
4,289
1,919
1
919
342
6,534
4,273
3.8x
3.2x
2.0x
5.2x
1.6x
6.4x
1.1x
8.4x
0.8x
9.5x
0.8x
13.4x
1
Amounts shown may contain rounding differences
Adj t d EBITDA from
Adjusted
f
2009 on as defined
d fi d in
i syndicated
di t d loan
l
but
b t IAS 19 (rev.
(
2011) nott applied
li d in
i 2012
3
Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes
4
Includes 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
Since 2012
2
31
6) Back-up
M t iti 1 for
Maturities
f Gross
G
Indebtedness
I d bt d
(mn
(
€)
As at June 30, 2014
(mn €)
Syndicated Loan
Bonds
FY 13
H1 14
Gross indebtedness
6,638
6,534
Cash
2,045
1,919
Net indebtedness
4,289
4,273
Available credit lines
3,833
3,928
Total liquidity
5,878
5,848
∑1,568
∑1
568
68
∑1,438
∑1,035
SoR
716
CP
268
Oh
Others
455
106
2014
2015
1,500
2016
50 235
∑779
29
3
750
750
696
750
2017
2018
2019
2020
1
Maturities 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
€6,533.9 mn as at June 30, 2014; CP = Commercial Paper; SoR = Sales of receivables (€950.3 mn total amount as at June 30, 2014)
2
Any utilization under the Revolving Credit Facility (RCF) has to be shown as short term debt according to IFRS although the RCF matures in 2019 and has a total volume of €3,000 mn
3
Nominal amount US $950 mn (exchange rate as at June 30, 2014: 1.3651)
32
6) Back-up
C
Capex
and
dD
Depreciation
i ti & EPS B
Breakdown
kd
H1 2014
Capex, Depreciation & PPA1 (mn €)
6.52
867
829
6.89
0.37
794
5.2%
5.0%
EPS ex PPA1,2 (€)
4.7%
694
655
618
222
194
102
2012
2013
2014
Capex (PPE), percentage of sales
Depreciation,
p
, w/o PPA
PPA
1
2
1
1
1
Reported EPS PPA after tax
per share
2
EPS ex
,
PPA1,2
Amortization of intangibles from PPA
Assuming corporate tax rate of 28%
33
6) Back-up
A t
Automotive
ti Group
G
Financials
Fi
i l – Chassis
Ch
i &S
Safety
f t
› Sales increased by 6.4%
6 4% before
consolidation and FX effects
Chassis & Safety H1 2014
Sales (mn €)
EBITDA margin
› EBITDA increased by €3.9 mn to
€496.0 mn (+0.8%)
1
Adj. EBIT margin
3,593.3
3,653.7
3 746 7
3,746.7
14.1%
13.5%
13.2%
9.4%
9.2%
2013
2014
› Adj. EBIT1 increased by €1.4 mn to
€346 0 mn (adj.
€346.0
(adj EBIT1 margin 9.2%)
9 2%)
› EBIT increased by €13.6 mn to
€331.6 mn (EBIT margin 8.9%)
› PPA effect in H1 2014: -€14.1 mn
› No special effects in H1 2014
2012
1
Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details
34
6) Back-up
A t
Automotive
ti Group
G
Financials
Fi
i l – Powertrain
P
t i
Powertrain H1 2014
4 5% before
Sales (mn €)
EBITDA margin
1
Adj. EBIT margin
› EBITDA decreased by €45.1 mn to
€282.3 mn (-13.8%)
› Adj. EBIT1 increased by €12.2 mn
3,198.7
3,132.6
3,177.5
to €165.0
€165 0 mn (adj.
5 2%)
› EBIT decreased by €13.0 mn to
9.9%
10.5%
› Special effects in H1 2014: -€34.5 mn
2012
1
8.9%
4.9%
5.2%
2013
2014
35
6) Back-up
A t
Automotive
ti Group
G
Financials
Fi
i l – Interior
I t i
Interior H1 2014
8 9% before
Sales (mn €)
EBITDA margin
1
Adj. EBIT margin
€467.7 mn (+10.8%)
3,275.3
3,343.4
12.6%
12.6%
3,433.0
€353 6 mn (adj.
€353.6
10 3%)
13.6%
› Special effects in H1 2014: -€11.4 mn
8.7%
%
2012
1
2013
10.3%
2014
36
6) Back-up
R bb Group
Rubber
G
Financials
Fi
i l – Tires
Ti
4 9% before
Tires H1 2014
Sales (mn €)
4,718.5
EBITDA margin
4,641.2
Adj. EBIT1 margin
4,724.2
€1,137.3 mn (+14.6%)
€927 2 mn (adj.
€927.2
19 8%)
24.1%
21.2%
%
21 4%
21.4%
19.8%
17.4%
› Special effects in H1 2014: +€0.2 mn
2012
1
2013
2014
37
6) Back-up
Ti
Tires
– Commercial
C
i lV
Vehicle
hi l Ti
Tire D
Demand
d
for Truck Tires Europe
30%
30%
20%
20%
10%
10%
0%
0%
-10%
-10%
-20%
-20%
-30%
-30%
-40%
-40%
Jan
n-09
Ap r-09
ul-09
Ju
Oc t-09
n-10
Jan
Ap r-10
ul-10
Ju
Oc t-10
n-11
Jan
Ap r-11
ul-11
Ju
Oc t-11
n-12
Jan
Ap r-12
ul-12
Ju
Oc t-12
n-13
Jan
Ap r-13
ul-13
Ju
Oc t-13
n-14
Jan
Ap r-14
40%
Jan
n-09
Ap r-09
ul-09
Ju
Oc t-09
n-10
Jan
Ap r-10
ul-10
Ju
Oc t-10
n-11
Jan
Ap r-11
ul-11
Ju
Oc t-11
n-12
Jan
Ap r-12
ul-12
Ju
Oc t-12
n-13
Jan
Ap r-13
ul-13
Ju
Oc t-13
n-14
Jan
Ap r-14
40%
Truck tire replacement (YOY chg. monthly)
Truck tire replacement (YOY chg. monthly)
1
km BAG monthly (adj.)
1
2
for Truck Tires NAFTA
2
ATA monthly (adj.)
BAG = Bundesamt für Güterverkehr (German Federal Office for Goods Transport)
ATA = American Trucking Association
38
6) Back-up
R bb Group
Rubber
G
Financials
Fi
i l – ContiTech
C tiT h
ContiTech H1 2014
1 8% before
› EBITDA decreased by €16.8 mn to
€276.6 mn (-5.7%)
Sales (mn €)
1 854 6
1,854.6
EBITDA margin
1,940.3
1
Adj. EBIT margin
1,952.0
› Adj. EBIT1 decreased by €19.6 mn to
€220 8 mn (adj.
€220.8
11 4%)
› EBIT decreased by €17.1 mn to
15.5%
15.1%
14.2%
› Special effects in H1 2014: +€2.4 mn
12.4%
2012
1
2013
11.4%
2014
39
Fact Sheets 2012 – 2014
40
6) Fact Sheets
Quarterly Sales Analysis
Sales (mn €)
C&S
Powertrain
Interior
Tires
ContiTech
Oth / Consolidation
Other
C
lid ti
Continental Corporation
Q1
1,812.4
1,626.2
1,660.9
2,366.8
923.0
-69.8
69 8
8,319.5
Q2
1,780.9
1,572.5
1,614.4
2,351.7
931.6
-64.4
64 4
8,186.7
2012
Q3
1,725.0
1,484.8
1,582.3
2,484.9
924.0
-66.7
66 7
8,134.3
Q4
1,734.2
1,451.3
1,576.6
2,461.6
933.2
-61.2
61 2
8,095.7
FY
7,052.5
6,134.8
6,434.2
9,665.0
3,711.8
-262.1
262 1
32,736.2
Q1
1,792.9
1,526.1
1,620.1
2,222.2
941.6
-69.6
69 6
8,033.3
Q2
1,860.8
1,606.5
1,723.3
2,419.0
998.7
-67.3
67 3
8,541.0
2013
Q3
1,800.1
1,561.3
1,612.5
2,478.2
961.9
-64.4
64 4
8,349.6
Q4
1,815.4
1,566.4
1,649.8
2,463.8
976.1
-64.4
64 4
8,407.1
FY
7,269.2
6,260.3
6,605.7
9,583.2
3,878.3
-265.7
265 7
33,331.0
Q1
1,878.2
1,579.1
1,699.1
2,318.3
973.4
-58.0
58 0
8,390.1
Q2
1,868.5
1,598.4
1,733.9
2,405.9
978.6
-57.3
57 3
8,528.0
Q1
-1.1
11
-6.2
-2.5
-6.1
2.0
-3.4
Q2
45
4.5
2.2
6.7
2.9
7.2
4.3
2013
Q3
44
4.4
5.2
1.9
-0.3
4.1
2.6
Q4
47
4.7
7.9
4.6
0.1
4.6
3.8
FY
31
3.1
2.0
2.7
-0.8
4.5
1.8
Q1
48
4.8
3.5
4.9
4.3
3.4
4.4
Q2
04
0.4
-0.5
0.6
-0.5
-2.0
-0.2
Changes Y-o-Y in %
C&S
Powertrain
Interior
Tires
ContiTech
2014
Q3
Q4
FY
2014
Q3
Q4
FY
41
6) Fact Sheets
Q t l EBITDA Analysis
Quarterly
A l i
EBITDA (mn €)
C&S
Powertrain
Interior
Tires
ContiTech
Other / Consolidation
2012
Q1
Q2
Q3
Q4
FY
249.8
257.3
237.3
263.5 1,007.9
164.2
153.0
125.0
166.8
609.0
199.4
212.2
194.0
247.7
853.3
468.5
530.7
522.4
483.5 2,005.1
140.3
148.0
144.2
126.4
558.9
-18 3
-18.3
-12 5
-12.5
-24 6
-24.6
-11 4
-11.4
-66 8
-66.8
1,203.9 1,288.7 1,198.3 1,276.5 4,967.4
EBITDA margin in %
C&S
Powertrain
Interior
Tires
ContiTech
Q1
13.8
10.1
12.0
19.8
15.2
14.5
Q2
14.4
9.7
13.1
22.6
15.9
15.7
2012
Q3
13.8
8.4
12.3
21.0
15.6
14.7
Q4
15.2
11.5
15.7
19.6
13.5
15.8
FY
14.3
9.9
13.3
20.7
15.1
15.2
2013
Q1
Q2
Q3
Q4
FY
241.8
250.3
245.8
252.3
990.2
158.9
168.5
160.7
162.1
650.2
202.1
220.1
214.5
213.5
850.2
459.2
533.2
590.9
554.4 2,137.7
135.9
157.5
139.7
143.2
576.3
-28 5
-28.5
-19 7
-19.7
-29 1
-29.1
-32 3
-32.3
-109 6
-109.6
1,169.4 1,309.9 1,322.5 1,293.2 5,095.0
Q1
13.5
10.4
12.5
20.7
14.4
14.6
Q2
13.5
10.5
12.8
22.0
15.8
15.3
2013
Q3
13.7
10.3
13.3
23.8
14.5
15.8
Q4
13.9
10.3
12.9
22.5
14.7
15.4
FY
13.6
10.4
12.9
22.3
14.9
15.3
Q1
13.5
9.9
13.1
23.5
14.8
15.4
Q2
13.0
7.8
14.1
24.6
13.6
15.4
Q1
-3.2
-3.2
1.4
-2.0
20
-3.1
-2.9
Q2
-2.7
10.1
3.7
05
0.5
6.4
1.6
2013
Q3
3.6
28.6
10.6
13 1
13.1
-3.1
10.4
Q4
-4.3
-2.8
-13.8
14 7
14.7
13.3
1.3
FY
-1.8
6.8
-0.4
66
6.6
3.1
2.6
Q1
5.0
-1.2
10.4
18 8
18.8
5.7
10.8
Q2
-3.3
-25.6
11.1
11 0
11.0
-15.6
0.0
Changes Y-o-Y in %
C&S
Powertrain
Interior
Tires
ContiTech
Q1
Q2
254.0
242.0
157.0
125.3
223.2
244.5
545.4
591.9
143.7
132.9
-27 5
-27.5
-26 6
-26.6
1,295.8 1,310.0
2014
Q3
Q4
FY
2014
Q3
Q4
FY
2014
Q3
Q4
FY
42
6) Fact Sheets
Q t l Analysis
Quarterly
A l i off Adjusted
Adj t d EBIT1
1
Adjusted EBIT1 (mn
€)
C&S
Powertrain
Interior
Tires
ContiTech
Other / Consolidation
Q1
168.5
59.6
122.9
366.3
109.9
-31.0
796.2
Q2
176.1
93.2
160.3
439.7
130.5
-19.7
980.1
Q1
9.4
3.9
7.8
16.5
11.7
10 0
10.0
Q2
9.5
5.8
9.5
18.2
13.1
11 5
11.5
Adjusted EBIT1 margin in %
1
C&S
Powertrain
Interior
Tires
ContiTech
C ti
Continental
t lC
Corporation
ti
2013
Q3
Q4
FY
Q1
Q2
179.2 166.8
81.0
84.0
162.7 190.9
442.5 484.7
115.3 105.5
-27.6
-26.7
953.1 1,005.2
2013
Q3
Q4
FY
Q1
9.5
5.1
9.6
19.3
12.0
11 4
11.4
Q2
8.9
5.3
11.0
20.4
10.9
11 8
11.8
Q1
6.4
35 9
35.9
32.4
20.8
4.9
19.7
Q2
-5.3
-9.9
99
19.1
10.2
-19.2
2.6
Changes Y-o-Y in %
C&S
Powertrain
Interior
Tires
ContiTech
1
2014
Q3
Q4
FY
2014
Q3
Q4
FY
2014
Q3
Q4
FY
Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects
43
6) Fact Sheets
Q t l EBIT Analysis
Quarterly
A l i
EBIT (mn €)
C&S
Powertrain
Interior
Tires
ContiTech
Oth / Consolidation
Other
C
lid ti
Q1
166.8
45.8
92.8
384.3
115.8
-18.3
18 3
787.2
Q2
173.0
37.0
102.5
442.9
123.6
-12.8
12 8
866.2
2012
Q3
153.3
5.5
81.1
432.6
118.9
-24.6
24 6
766.8
Q2
9.7
2.4
6.3
18.8
13.3
10.6
2012
Q3
8.9
0.4
5.1
17.4
12.9
9.4
EBIT margin in %
C&S
Powertrain
Interior
Tires
ContiTech
Q1
9.2
2.8
5.6
16.2
12.5
9.5
Q4
FY
179.6
672.7
-40.0
48.3
137.1
413.5
406.7 1,666.5
95.3
453.6
-12.7
12 7
-68.4
68 4
766.0 3,186.2
Q4
10.4
-2.8
8.7
16.5
10.2
9.5
FY
9.5
0.8
6.4
17.2
12.2
9.7
Q2
162.7
58.3
112.5
440.3
129.2
-19.8
19 8
883.2
2013
Q3
155.1
49.5
104.4
494.6
111.8
-29.1
29 1
886.3
Q1
8.7
3.4
5.9
16.4
11.4
9.3
Q2
8.7
3.6
6.5
18.2
12.9
10.3
2013
Q3
8.6
3.2
6.5
20.0
11.6
10.6
Q4
6.9
1.3
4.1
18.4
11.6
8.9
FY
8.2
2.9
5.8
18.3
11.9
9.8
Q1
9.2
4.1
8.1
19.0
11.9
10.8
Q2
8.5
2.1
8.9
20.1
10.7
10.6
Q1
-6.9
13.8
3.1
-5.0
-7.0
-5.1
Q2
-6.0
57.6
9.8
-0.6
4.5
2.0
2013
Q3
1.2
800.0
28.7
14.3
-6.0
15.6
Q4
-30.0
149.0
-50.4
50.4
11.3
19.0
-2.5
FY
-11.0
271.6
-8.0
8.0
5.2
1.9
2.4
Q1
10.9
23.8
44.0
20.7
7.2
20.8
Q2
-2.1
-43.6
37.5
9.6
-19.3
2.7
Q1
155.3
52.1
95.7
365.2
107.7
-28.6
28 6
747.4
Changes Y-o-Y in %
C&S
Powertrain
Interior
Tires
ContiTech
Q4
FY
125.8
598.9
19.6
179.5
68.0
380.6
452.6 1,752.7
113.4
462.1
-32.6
32 6
-110.1
110 1
746.8 3,263.7
Q1
172.3
64.5
137.8
440.7
115.5
-27.6
27 6
903.2
Q2
159.3
32.9
154.7
482.4
104.3
-26.7
26 7
906.9
2014
Q3
Q4
FY
2014
Q3
Q4
FY
2014
Q3
Q4
FY
44
6) Fact Sheets
C
Consolidated
lid t d St
Statement
t
t off IIncome
(mn €)
H1 2012
Sales
Cost of sales
Gross margin on sales
Research and development expenses
Selling and logistics expenses
Administrative expenses
Other income and expenses
Income from at-equity accounted investees
Oth income
Other
i
ffrom investments
i
t
t
Earnings before interest and taxes
Interest income
1
1,2
Interest expense
Earnings before taxes
Income tax expense
Net income
Non-controlling interests
Net income attributable to the shareholders of the parent
Basic earnings per share in EUR
Diluted earnings per share in EUR
1
2
H1 2013
H1 2014
16,506.2
,
16,574.3
,
16,918.1
,
-12,931.3
-12,776.1
-12,694.9
3,574.9
3,798.2
4,223.2
-900.5
-768.5
768 5
-322.0
32.1
29.9
7.5
-987.0
-818.7
818 7
-352.1
-24.7
14.8
0.1
-1,073.8
-873.4
873 4
-381.2
-67.3
-17.7
0.3
1,653.4
1,630.6
1,810.1
48.7
-269.9
41.5
-401.9
46.3
-186.8
-221.2
-360.4
-140.5
1,432.2
1,270.2
1,669.6
-396.7
-83.8
-323.9
1 035 5
1,035.5
1 186 4
1,186.4
1 345 7
1,345.7
-32.3
-44.5
-41.9
1,003.2
1,141.9
1,303.8
5.02
5.02
5.71
5.71
6.52
6.52
Including interest effects from pension obligations, from other long-term employee benefits, and from pension funds. In the prior years, the resulting income was reported
under interest expense; the comparative figures for the prior years have been adjusted accordingly
Including gains and losses from foreign currency translation, from changes in the fair value of derivative instruments as well as from available-for-sale financial assets
45
6) Fact Sheets
C
Consolidated
lid t d St
Statement
t
t off Financial
Fi
i l Position
P iti – Assets
A
t
Assets in € millions
Goodwill
Other intangible assets
Property, plant and equipment
Investment property
Investments in at-equity accounted investees
Oth investments
Other
i
t
t
Deferred tax assets
Defined benefit assets
Long-term derivative instruments and interestbearing investments
Other long-term financial assets
Other long-term assets
Non-current assets
Inventories
Trade accounts receivable
Other short-term financial assets
Other short-term assets
Income tax receivables
Short-term derivative instruments and interestbearing investments
Cash and cash equivalents
Assets held for sale
Current assets
Total assets
June 30, 2014 Dec. 31, 2013
5,520.9
5,605.4
557 7
557.7
470 7
470.7
7,728.0
7,924.0
20.4
19.9
450.0
410.6
79
7.9
10 6
10.6
928.4
1,106.3
6.0
7.5
June 30, 2013
5,605.7
730 6
730.6
7,556.5
19.4
450.9
69
6.9
1,102.7
2.1
299.8
33.4
21.2
15,909.4
3,178.6
5,950.2
381.0
761.3
67.0
285.1
45.0
20.1
15,569.5
2,830.9
5,315.8
336.2
601.2
69.3
261.2
22.3
12.8
15,771.1
3,160.3
5,922.1
342.9
727.7
81.4
41.9
1 919 4
1,919.4
31.9
12,331.3
28,240.7
18.3
2 044 8
2,044.8
34.8
11,251.3
26,820.8
223.6
1 578 9
1,578.9
36.6
12,073.5
27,844.6
46
6) Fact Sheets
Consolidated Statement of Financial Position – Total Equity and Liabilities
Total equity and liabilities in € millions
June 30, 2014 Dec. 31, 2013 June 30, 2013
512.0
Subscribed capital
512.0
512.0
4 155 6
4,155.6
Capital reserves
4 155 6
4,155.6
4 155 6
4,155.6
5,535.3
Retained earnings
6,339.1
4,754.1
-1,191.7
Other comprehensive income
-1,262.5
-978.6
9,011.2
Equity attributable to the shareholders of the parent
9,744.2
8,443.1
311 0
311.0
Non-controlling interests
331.9
333.2
9,322.2
Total equity
10,076.1
8,776.3
Provisions for pension liabilities and similar obligations
2,391.1
2,682.9
2,471.1
113.2
Deferred tax liabilities
152.0
288.8
266.9
Long-term provisions for other risks and obligations
283.4
290.4
5,041.2
Long-term portion of indebtedness
5,041.6
3,274.2
16.2
Other long-term financial liabilities
44.9
12.4
42.2
Other long-term
g
liabilities
42.9
55.5
7,870.8
Non-current liabilities
8,247.7
6,392.4
4,596.3
Trade accounts payable
4,728.0
4,376.2
588.2
Income tax payables
619.9
625.8
631 1
631.1
Short-term
Short
term provisions for other risks and obligations
591 5
591.5
593 8
593.8
1,596.3
Indebtedness
1,492.3
4,801.4
1,448.0
Other short-term financial liabilities
1,405.6
1,342.9
767.9
Other short-term liabilities
1,078.7
933.7
Liabilities held for sale
09
0.9
—
21
2.1
9,627.8
Current liabilities
9,916.9
12,675.9
26,820.8
Total equity and liabilities
28,240.7
27,844.6
47
6) Fact Sheets
C
Consolidated
lid t d St
Statement
t
t off C
Cash
h Fl
Flows
January 1 to June 30
in € millions
Net income
Income tax expense
p
EBIT
Interest paid
Interest received
Income tax paid
Dividends received
Depreciation, amortization, impairment and reversal of impairment losses
Income from at‐equity accounted and other investments, incl. impairment and reversal of impairment losses
Gains from the disposal of assets, companies and business operations
Other non‐cash items
Changes in
inventories
trade accounts receivable
trade accounts payable
pension and similar obligations
other assets and liabilities
Cash flow arising from operating activities
Second Quarter
2014
2013
2014
2013
1,345.7
323.9
1,186.4
83.8
738.1
108.3
723.1
-77.2
140.5
360.4
60.5
237.3
1,810.1
1,630.6
906.9
883.2
‐97.4
12.6
‐352.0
16.1
795.7
17.4
‐3.4
—
‐239.4
15.8
‐420.2
20.6
848.7
‐14.9
‐84.2
‐2.4
‐36.6
5.6
‐173.7
0.5
403.1
25.8
3.6
—
‐57.3
8.6
‐216.0
5.0
426.7
‐12.2
‐1.9
—
‐294.3
‐578.0
87.0
4.3
25.4
‐194.6
‐928.8
61.3
‐9.2
‐58.9
‐26.2
181.8
‐90.2
3.8
‐179.7
0.7
‐129.8
‐55.0
‐6.7
‐179.5
1,443.5
624.4
1,024.7
665.8
Proceeds on the disposal of property, plant and equipment, and intangible assets
C it l
Capital expenditure on property, plant and equipment, and software
dit
t l t d
i
t d ft
Capital expenditure on intangible assets from development projects and miscellaneous
Proceeds on the disposal of companies and business operations
Acquisition of companies and business operations
26.0
‐793.9
793 9
‐33.4
0.2
‐67.6
11.8
‐866.7
866 7
‐15.7
248.5
‐90.5
8.2
‐453.0
453 0
‐18.7
—
‐49.9
7.0
‐435.4
435 4
‐8.4
‐1.8
‐4.3
Cash flow arising from investing activities
-868.7
-712.6
-513.4
-442.9
Cash flow before financing activities (free cash flow)
574 8
574.8
-88 2
-88.2
511 3
511.3
222 9
222.9
Change in indebtedness
Successive purchases
Dividends paid Dividends paid and repayment of capital to non‐controlling interests
Cash and cash equivalents arising from first consolidation of subsidiaries
‐185.4
—
‐500.0
‐26.5
0.2
‐199.3
‐48.5
‐450.0
‐19.7
0.4
‐101.9
—
‐500.0
‐25.6
—
‐41.7
‐43.9
‐450.0
‐18.7
—
Cash flow arising from financing activities
-711.7
711.7
-717.1
717.1
-627.5
627.5
-554.3
554.3
Change in cash and cash equivalents
-136.9
-805.3
-116.2
-331.4
Cash and cash equivalents at the beginning of the reporting period
Effect of exchange rate changes on cash and cash equivalents
2,044.8
11.5
2,397.2
‐13.0
2,008.0
27.6
1,962.7
‐52.4
Cash and cash equivalents at the end of the reporting period
1,919.4
1,578.9
1,919.4
1,578.9
48
6) Fact Sheets
Q2 2014 R
Results
lt R
Reported
t d and
d Adj
Adjusted
t d ((mn €) – by
b Di
Division
i i
Sales
EBIT
Chassis & Safety
2013
2014
Powertrain
2013
2014
Interior
2013
2014
Tires
2013
2014
1,860.8 1,868.5
1,606.5 1,598.4
1,723.3 1,733.9
2,419.0 2,405.9
ContiTech
2013
2014
Cons./Corr.
2013
2014
998.7
978.6
-67.3
-57.3
-19.8
-26.7
162.7
159.3
58.3
32.9
112.5
154.7
440.3
482.4
129.2
104.3
in % of sales
8.7%
8.5%
3.6%
2.1%
6.5%
8.9%
18.2%
20.1%
12.9%
10.7%
Amortization of intangible assets from PPA
13.3
7.3
33.3
16.6
48.1
24.8
1.0
1.0
1.2
1.4
0.1
-0.3
0.0
1.4
34.5
0.0
11.4
-1.6
0.0
0.1
-1.2
0.4
0.2
0.2
0.0
-0.3
0.0
0.0
1.3
0.0
0.1
0.2
1.6
34.5
-0.3
11.4
-1.6
1.3
176.1
166.8
93.2
84.0
160.3
190.9
439.7
9.5%
8.9%
5.8%
5.3%
9.5%
11.0%
18.2%
Total special effects
Total consolidation effects
Total consolidation & special effects
Adjusted operating result (adj. EBIT)
in % of adjusted sales
1
1
Corporation
2013
2014
8,541.0 8,528.0
883.2
906.9
10.3%
10.6%
0.0
97.0
51.1
0.0
0.0
-0.4
44.7
1.0
0.0
0.0
0.3
2.5
0.1
-0.2
0.0
0.0
-0.1
47.2
484.7
130.5
105.5
-19.7
-26.7
20.4%
13.1%
10.9%
980.1 1,005.2
11.5%
11.8%
Before amortization of intangibles
g
from PPA, changes
g in the scope
p of consolidation and special
p
effects
49
6) Fact Sheets
H1 2014 R
Results
lt R
Reported
t d and
d Adj
Adjusted
t d ((mn €) – by
b Di
Division
i i
Sales
EBIT
Chassis & Safety
2013
2014
Powertrain
2013
2014
Interior
2013
2014
Tires
2013
2014
ContiTech
2013
2014
3,653.7 3,746.7
3,132.6 3,177.5
3,343.4 3,433.0
4,641.2 4,724.2
1,940.3 1,952.0
Cons./Corr.
2013
2014
-136.9
318.0
331.6
110.4
97.4
208.2
292.5
805.5
923.1
236.9
219.8
in % of sales
8.7%
8.9%
3.5%
3.1%
6.2%
8.5%
17.4%
19.5%
12.2%
11.3%
26.4
14.1
66.5
33.1
96.0
49.7
2.1
2.0
2.7
2.9
0.1
-0.3
0.0
-24.4
34.5
-19.6
11.4
-1.6
-0.2
0.8
-2.4
0.5
0.3
0.3
0.0
-1.4
0.0
0.0
2.3
0.0
0.2
0.3
-24.1
34.5
-21.0
11.4
-1.6
2.1
344.6
346.0
152.8
165.0
283.2
353.6
806.0
9.4%
9.2%
4.9%
5.2%
8.7%
10.3%
17.4%
1
1
-48.4
Corporation
2013
2014
-115.3 16,574.3 16,918.1
-54.3
1,630.6
1,810.1
9.8%
10.7%
0.0
193.8
101.8
-2.4
0.0
-47.5
43.3
0.5
0.0
0.0
-0.6
3.1
0.8
-1.9
-2.4
0.0
-48.1
46.4
927.2
240.4
220.8
-50.7
-54.3
1,776.3
1,958.3
19.8%
12.4%
11.4%
10.8%
11.6%
Before amortization of intangibles
g
from PPA, changes
g in the scope
p of consolidation and special
p
effects
50
6) Fact Sheets
Q2 and H1 2014 Results Reported and Adjusted (mn €) – by Group
Q2 2013/2014
Automotive
A
t
ti
2013
2014
Sales
EBIT
R bb
Rubber
2013
2014
YTD January - June 2013/2014
Cons./Corr.
C
/C
2013
2014
Corporation
C
ti
2013
2014
Automotive
A
t
ti
2013
2014
5,159.5
5,176.0
3,392.0
3,361.8
-10.5
-9.8
8,541.0
8,528.0
10,070.7 10,304.8
-19.8
-26.7
883.2
906.9
636.6
10.3%
10.6%
6.3%
R bb
Rubber
2013
2014
Cons./Corr.
C
/C
2013
2014
6,524.0
6,633.1
-20.4
-19.8
721.4
1,042.4
1,143.0
-48.4
-54.3
7.0%
16.0%
17.2%
333.5
346.8
569.5
586.8
in % of sales
6.5%
6.7%
16.8%
17.5%
94.7
48.7
2.3
2.5
0.0
0.0
97.0
51.1
188.9
96.9
4.9
5.0
0.0
1.1
45.9
-1.5
-1.2
0.0
0.0
-0.4
44.7
-44.3
45.9
-0.8
-2.6
0.3
0.2
0.0
2.3
0.0
0.0
0.3
2.5
-0.6
0.3
0.0
1.4
46.1
-1.5
1.5
1.1
0.0
0.0
-0.1
0.1
47.2
-44.9
44.9
46.2
429.6
441.6
570.3
590.4
-19.8
-26.7
980.1
1,005.2
780.6
8.4%
8.5%
16.8%
17.8%
11.5%
11.8%
7.8%
1
1
Corporation
C
ti
2013
2014
16,574.3 16,918.1
1,630.6
1,810.1
9.8%
10.7%
0.0
193.8
101.8
-2.4
0.0
-47.5
43.3
2.8
0.0
0.0
-0.6
3.1
-0.8
0.8
0.2
-2.4
2.4
0.0
-48.1
48.1
46.4
864.5
1,046.5
1,148.2
-50.8
-54.3
1,776.3
1,958.3
8.4%
16.0%
17.5%
10.8%
11.6%
Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects
51
6) Fact Sheets
Sh h ld St
Shareholder
Structure
t
Shareholder structure
as at Dec. 31, 2010
as at Dec. 31, 2011
M.M. Warburg
& CO KGaA
16.48%
M.M. Warburg
& CO KGaA
5.19%
Schaeffler
Group
42.17%
B. Metzler
seel. Sohn Co.
Holding AG
16.48%
Free Float
24.87%
Schaeffler
Group
49.90%
B. Metzler
seel. Sohn Co.
Holding AG
5.19%
Free Float
39.72%
as at Dec. 31, 2012
Schaeffler
Group
49.9%
since Sept. 17, 2013
Schaeffler
Group
46.0%
Free Float
50.1%
Free Float
54.0%
Source: Based on publicly available data
52
6) Fact Sheets
D
Development
l
t off Continental’s
C ti
t l’ C
Credit
dit R
Rating
ti
S&P, Fitch / Moody’s
Standard & Poor’s1
Moody’s
2
Fitch
3
Investtment
Gra
ade
BBB+ / Baa1
BBB / Baa2
BBB- / Baa3
Non-Investm
ment
Grade
BB+ / Ba1
BB / Ba2
Before
Siemens
VDO
BB- / Ba3
B+ / B1
B / B2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1
Solicited rating since May 2000
Solicited rating until January 2014
3
Solicited rating since November 2013
2
53
References
U f l Li
Useful
Links
k and
dR
References
f
Continental Investor
Relations website
Annual and interim reports
http://www.continental-corporation.com/www/portal_com_en/themes/ir/financial_reports/
2013 Fact Book
http://www.continental-corporation.com/www/portal_com_en/themes/ir/financial_reports/
Investor Relations
events and presentations
http://www.continental-corporation.com/www/portal_com_en/themes/ir/events/
Sustainability at Continental
(presentation and fact sheet
for investors)
Corporate
C
t S
Social
i l
Responsibility Report
htt //
http://www.continental-sustainability.com
ti
t l
t i bilit
Corporate Governance
Principles
http://www.continentalcorporation com/www/portal com en/themes/ir/corporate governance/
corporation.com/www/portal_com_en/themes/ir/corporate_governance/
Continental share
http://www.continental-corporation.com/www/portal_com_en/themes/ir/share/
Continental
C
ti
t l
bonds and rating
htt //
http://www.continental-corporation.com/www/portal_com_en/themes/ir/bonds/
ti
t l
ti
/
/ t l
/th
/i /b d /
54

HSBC Capital Goods Conference 2014 London – September 3rd

Transcription

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