- Continental

Report
Citigroup Roadshow
Frankfurt & London
May 10/11, 2010
Wolfgang Schäfer, CFO
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
2 / © Continental AG
Highlights
Group – Summary of Financial Highlights
Q1 2010
P&L
Q1 sales up by 39% YOY and by 5% QOQ; Q1 adj. EBIT* up by € 641 mn YOY
Adj. EBIT* improved to € 605 mn – adj. EBIT* margin 10.2% in Q1/10; adj. EBIT* Q1/10 is
above Q1/08 although sales still down by almost 10%
Automotive Group: adj. EBIT* margin at 8% in Q1 2010; again strong results in C&S;
further recovery in Interior and continuous improvement in Powertrain
Rubber Group: adj. EBIT* margin at 14.5% in Q1 2010; all divisions contributed to
sustained adj. EBIT* level compared to Q4 2009; no material impact yet from escalated
raw material prices (esp. natural rubber)
Q1 2010
Balance Sheet
Overall almost no special items booked in Q1 2010
Cash consumption (FCF) limited to € 363 mn in Q1 2010 despite a strong increase in all
business activities
No major cash out in Q1 2010 for restructuring undertaken in 2009
Capex at € 178 mn in Q1 2010 but will increase in the coming quarters
Net debt down to € 8.2 bn at the end of Q1; net debt/adj. EBITDA @ 2.7x** in Q1 2010
* w/o amortization of intangibles from PPA, consolidation and special effects; ** calculated according to syndicated loan facilities
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
3 / © Continental AG
Highlights
Earnings Increase Thanks to Business Recovery and Cost Control
Continental Corporation
Consolidated Sales € 24.239 bn
adj. EBIT* 1.747 bn
Sales
6,639
Consolidated Sales € 20.096 bn
adj. EBIT* 1.166 bn
6,615
5,892
5,337
5,093
adj. EBIT
*
4,302
5,696
5,997
604.7
4,761
10.2%**
-36.7
Q1/08
Q2/08
Q3/08
Q4/08
* w/o amortization of intangibles from PPA, consolidation and special effects
** adj. EBIT as a percentage of sales before changes in scope of consolidation
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
4 / © Continental AG
Q1/09
Q2/09
Q3/09
Q4/09
Q1/10
Highlights
Earnings Increase Thanks to Business Recovery and Cost Control
Automotive Group
Sales (€ millions)
Rubber Group
Adjusted EBIT* (€ millions)
Sales (€ millions)
Adjusted EBIT* (€ millions)
4,351
2,292
3,770
2,232
1,784
2,521
320
300
121
-146
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2008
*
2009
2010
2008
2009
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
5 / © Continental AG
2010
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2008
2009
2010
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2008
2009
2010
Highlights
Net Indebtedness Walk-Down (FY 2009 to Q1 2010)
(€ million)
174.1
716.4
33.2
178.0
23.8
30.0
9.4
657.7
8,895.5
Gearing
ratio
Change in working
capital € -857.3 mn
219.0%
1,056.8
8,231.9
*
of subsidiaries and management units
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
6 / © Continental AG
Net debt
(end Q1/10)
Capital
increase
F/X and
other
Other FCF
*
Disposals
Chg. in
payables
Chg. in
inventories
Chg. in
receivables
*
Acquisitions
Capex
Net debt
(FY 2009)
144.9%
Highlights
Adj. LTM EBITDA at € 3.0 bn
4.75
4.50
4.46
4.75
4.75
4.50
4.25
4.55
4.28
4.25
4.25
4.00
3.66
Adj. LTM
EBITDA
€ 2,977.1 bn
Q1/09
Q2/09
Q3/09
Q4/09
2.68
old level
actual
Q1/10
* Leverage covenant ratio defined as net debt to EBITDA (LTM) as defined in syndicated loan facilities and FSF
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
7
new level (since Dec. 18, 2009)
Q2/10
Q3/10
Q4/10
Highlights
Current Credit Ratings
Due to the acquisition of Siemens VDO and the beginning of the financial crisis Continental’s
corporate credit rating was downgraded several times
Continental’s current credit rating is:
Moody’s since Aug 14, 2009:
B1 negative outlook
S&P since Aug 13, 2009:
B+ CreditWatch neg.
Rating was confirmed on
Jan 21, 2010
We expect S&P to resolve its CreditWatch within the next weeks
Main concerns from S&P acc. to its Feb 2010 report are:
“… we consider that headroom under the new covenant structure
could prove tight in 2010 and beyond.”
“… and the relationship between Continental and Schaeffler remains
the key risk for the rating.”
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
8
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
9 / © Continental AG
Group Financials
Corporation
(€ millions)
Sales
6,639.4
39.4%
888.3
4,302.0
EBITDA
884.0
5,996.7
256.0%
14.8%
EBITDA margin
13.3%
249.5
5.8%
Q1/08
Q1/09
Q1/10
adj. EBIT
-36.7 *
604.7 **
adj. EBIT margin
-0.9%
10.2%
* EBIT w/o amortization of intangibles from PPA, consolidation (€ +1.8 mn) and special effects (€ -15.8 mn)
** EBIT w/o amortization of intangibles from PPA, consolidation (€ +2.7 mn) and special effects (€ -0.4 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
10 / © Continental AG
Adj. LTM
EBITDA
€ 2,977.1 mn
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
11 / © Continental AG
Financials
Automotive Group - Highlights
2009 vs 2008
2010 vs 2009
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/09 Q1/10
Car & light vehicle production
Europe & NAFTA (%-chg. YOY)
adj. EBIT* margin (in %)
chg. YOY in WC (€ mn)
Conti
Organic sales growth (YOY in %)
Market
Car & light vehicle production
Europe & NAFTA (tsd units)
9,246 9,486 7,932 6,938
5,193
6,141 6,600 7,368
-3%
-3%
-7%
-26%
-45%
-36%
-17%
6%
46%
n/a
n/a
n/a
n/a
-40%
-31%
-11%
22%
50%
8.2%
7.8%
3.5%
1.9% -5.7%
1.2%
3.0%
6.0% -5.9%
8.0%
Total production volume in Q1/10 increased by 2.4 mn units YOY and by 0.2 mn units QOQ
Sales increased by 50% YOY (Q1/10 vs. Q1/09) and by 9% QOQ (Q1/10 vs. Q4/09)
Organic sales growth again some 4 percentage points above market growth in main markets
Adj. EBIT* margin level almost restored to Q1/08 level after 2 years despite a decrease of
1.7 mn units
Working Capital (WC) under control in Q1/10 although sales increased by € 1.2 bn
compared to Q1/09
*
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
12 / © Continental AG
7,570
312
Financials
Automotive Group: Continuation of Recovery
299.9
3,770.3
3,460.3
Adj. EBIT* (€ million) and adj. EBIT* margin
3,223.0
2,837.8
2,521.3
Sales (€ million)
8.0%
49.5%
18.3%
-7.7%
-5.9%
-31.3%
-42.1%
-145.9
Chg. YOY
+1,249
+446
Q1/09
Q2/09
Q3/09
Q4/09
Q1/10
Q1/09
Q2/09
Q3/09
Q4/09
Sales increased by € 1,249 mn in Q1/10 compared to Q1/09 and by 9% QOQ
Adj. EBIT* increased by € 446 mn driven by volume recovery and strict cost control
Adj. EBIT* margin up to 8.0%
*
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
13 / © Continental AG
Q1/10
Financials
Automotive Group: Overview Q1 2010
Automotive Group: Sales by division and organic growth
Adj. EBIT* and adj. EBIT* margin by division
(€ million)
(€ million)
35.9%
114.8
3,770.3
1,340.3
- 29.9
163.1
61.5%
Organic
sales
growth
22.0
2.0%
12.0%
1,354.4
56.0%
C&S
PT
I
cons.
total
C&S
Reported sales increased by 49.5%
Chassis & Safety 56.3%
Powertrain 60.1%
Interior 35.3%
*
299.9
8.0%
8.6%
50.1%
1,105.5
0.0
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
14 / © Continental AG
PT
I
cons.
total
EBITDA increased by € 426.3 mn to
€ 472.4 mn (PY € 46.1 mn)
Capex spending declined by € 43.8 mn to
€ 106.1 mn (2.8% of sales)
R&D expenses declined by 3.4% to € 318.4 mn
(8.4% of sales)
Restructuring at Powertrain
Powertrain: Continuous Improvement Since Q4/08
(€ million)
Sales
1,294.4
1,076.0
912.9
907.4
756.7
adj. EBIT
1,105.5
1,004.3
797.0
690.5
*
22.0
-102.0
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
Committed to reach sustainable break-even on adj. EBIT level in 2011
Mid-term margin target at least 8% on reported level
*
Q1/08
Q3/08
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
15 / © Continental AG
Q1/09
Q3/09
Q1/10
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
16 / © Continental AG
Financials
Rubber Group – Highlights
28.0%
40,000
30,000
20,000
10,000
0
PLT
6.0%
Q1/07
-23.6%
Q1/09
Q1/08
Volume ww
1,800.0
1,715
CVT
800.0
Q1/08
ContiTech
Volumes ww
1,000.0
500.0
1,297
30.0%
2.1%
-5.8%
Q1/07
781
11.8%
Volumes almost restored to Q1 2008 levels
Q1/09
10.0%
Profitability restored on much lower
volumes
Decision on plant closure in Stoecken
Q1/10
-10.0%
EBIT margin
798
569
12.6%
702
13.1%
6.1%
40.0%
Strong recovery in OE business
30.0%
Industry business at previous year level
20.0%
10.0%
0.0
Mix OE / non-OE improved to 55/45 in Q1
0.0%
Q1/07
Q1/08
Sales
Q1/09
EBIT margin
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
17 / © Continental AG
Strong volume recovery – gained MS in RT
Europe and Americas in Q1 2010
50.0%
3.7%
300.0
-200.0
Chg yoy
1,125
8.2%
RT market Europe + 11% / NAFTA +10%
Increased tire prices in Europe by 3% to
5% starting May 2010 and by 6% in the US
starting June 2010
Q1/10
1,629
1,300.0
40.0%
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-30.0%
Q1/10
Raw material price increases will impact
Rubber Group in the coming quarters
Financials
Rubber Group: Raw Material Prices Start to Affect Earnings in Q2
Adj. EBIT* (€ million) and adj. EBIT* margin
320.0
2,231.9
2,239.9
2,118.0
25.1%
120.7
1,926.8
1,783.6
Sales (€ million)
3.2%
14.5%
-11.9%
Chg. YOY
-22.2%
6.8%
-22.5%
+448
Q1/09
Q2/09
Q3/09
+199
Q4/09
Q1/10
Q1/09
Q2/09
Q3/09
Q4/09
Q1/10
Sales increased by € 448 mn and are at nearly the same level as in Q4 2009 due primarily to
strong replacement tire shipments in Q1 2010
Adj. EBIT* up by € 199 mn and almost unaffected from increasing raw material prices
Raw material cost will be a burden in 2010 – target to compensate gross impact by price
increases, mix improvements and efficiency gains
* w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
18 / © Continental AG
Financials
Rubber Group: Overview Q1 2010
Rubber Group: Sales by division
Adjusted EBIT* and adjusted EBIT* margin by division
(€ million)
(€ million)
7.2
280.8
1,283.0
14.4%
-34.2
2,231.9
219.6
22.3%
17.4%
2.6%
0.0
320.0
14.5%
24.8%
702.3
93.2
Organic
sales
growth
22.9%
CT
13.3%
PLT
CVT
cons.
total
Reported sales increased by 25.1%
ContiTech 23.5%
Passenger and Light Truck Tires 28.7%
Commercial Vehicle Tires 18.0%
*
w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
19 / © Continental AG
CT
PLT
CVT
cons.
total
EBITDA increased by € 200.8 mn
to € 415.9 mn (PY: € 215.1 mn)
Capex spending decreased by 20.3% to
€ 72.3 mn (3.2% of sales)
R&D expenses slightly down by € 0.2 mn
at € 56.6 mn (2.5% of sales)
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
20 / © Continental AG
Interest result Q1 2010 € -153.7 mn:
Interest income: € 5.8 mn
Interest expenses: € -178.8 mn
Positive F/X effects*: € 19.3 mn
(mainly not cash effective)
Financial indebtedness
Net Indebtedness & Gearing Ratio
225.9%
IFRS
189.6%
168.2%
186.1%
144.9%
1,899.0
30.0%
25.1%
8,895.5
58.9%
9,464.8
2,601.1
11,041.5
110.7%
10,483.5
158.3%
10,856.4
Equivalent to
189.0%
under IFRS
accounting
219.0%
210.0%
13.0%
1,168.6
1,181.0
8,231.9
US-GAAP
9,746.6
(€ million)
881.1
493.2
617.5
517.7
525.0
32.8
29.5
28.2
20.4
6.9
0.4
0.1
0.1
13.7
0.1
YE
YE
YE
YE
YE
YE
YE
YE
Q1
H1
9M
YE
Q1
2001
2002
2003
2004
2005
2006
2007
2008
Off balance sheet debt
*Including effects from changes in fair value of derivative instruments
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
21 / © Continental AG
Net indebtedness
2009
Gearing Ratio
2010
Financial Indebtedness
Next Step: Balance Out Maturity Profile
5,648.1
Cash and undrawn (fully committed) credit
lines amounted to € 3.56 bn at March 31, 2010
Tranche D amounted to € 771 mn at end of Q1
2010 and is now accounted as maturity in
2010 but Tranche D will not become due
before Aug 2012
3,687.8
Cash
Q1 2010
1,410
Fully
available
credit lines
Total other maturities (excl. Tranche B) in
2010 and 2011 amount to € 777 mn
2,151
2010
2012 maturities from VDO financing:
305.3
2011
2012
32.3
22.1
49.0
2013
2014
later
Tranche C € 5.0 bn
Tranche D at drawn amount
FSF* € 2.45 bn
Possible next step: balance out 2012
maturities by issuance of high yield bond in
the course of H1/10
*FSF will pay down outstanding amounts under Tranche B at August 2010
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
22 / © Continental AG
8,093.6
Cash
1,410
Q1 2010
Pro-forma
for Forward
Start Facility
Forward Start
Facility
2,445.5
Fully
available
credit lines
2,151
5,648.1
1,242.3
Total maturities
2010 € 1,242
thereof Tranche
D € 771 mn;
Tranche D due
in 08/2012
770.7
471.6
305.3
2010
2011
2012
32.3
22.1
49.0
2013
2014
later
Agenda
Highlights
Group Financials
Financials Automotive Group
Update Powertrain
Financials Rubber Group
Financial Indebtedness
Outlook 2010
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
23 / © Continental AG
Outlook 2010
Continental – Market Outlook 1/2
PC & LT production (mn vehicles)
2009
Old: -1%
2010E
28.2
30.6
Truck production (k units)
2009
1,356
1,241
2010 E
Old: +20%
+9%
+9%
16.8 17.1
+2%
8.5
10.7
+26%
Europe
NAFTA
Asia
5.4 5.6
+4%
267 290
+9%
210 250
+19%
RoW
Europe
NAFTA
Old: +3%
261 272
2009
2009
253 263
206
Asia
59
2010 E
60
2010E
+1%
225
27
147 146
+4%
+4%
+9%
Europe
NAFTA
Asia
Source: Global Insight, LMC and own estimates
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
24 / © Continental AG
RoW
TT RT markets (mn tires)
PLT RT markets (mn tires)
Old: +2%
129 141
+9%
16
17
+5%
RoW
15
16
+7%
+8%
Europe
NAFTA
28
+5%
Asia
RoW
Outlook 2010
Continental – Company Outlook 2/2
2010E
2009
Sales
€ 20,095.7 mn
Adj. EBIT* Automotive
€ 192.0 mn
Adj. EBIT* Rubber
€ 1,035.5 mn
Raw materials tires
relief of approx. € 250 mn
Total special items
€ 1,755.4 mn
Interest result
€ -720.8 mn
Depending on possible issuance of HYB up
to minus € 750-800 mn
Free cash flow
€ 1,640.3 mn
Ability to generate free cash flow limited:
a) Rising capex
b) Restructuring from 2009 becomes cash
effective
c) Higher working capital
Capex
€ 860.1 mn
Dividend
none
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
25 / © Continental AG
*
at least +5% and up to +10%
Possibly triple adj. EBIT* compared to 2009
Sustain good 2009 results despite raw material
price burden
At current natural rubber (>3 US $/kg)
burden > € 250 mn
At around € 100 mn
Expected increase of up to € 400 mn
No dividend planned
w/o amortization of intangibles from PPA, consolidation and special effects
Thank you for your attention
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
26 / © Continental AG
Disclaimer
This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the
Citigroup Roadshow, Frankfurt & London, May 10/11, 2010. It has not been independently verified. It
does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or
other securities issued by Continental AG and neither shall any part of it form the basis of, or be relied
upon in connection with, any contract or commitment concerning the purchase or sale of such shares
or other securities whatsoever.
Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have
any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this
presentation or its contents or otherwise arising in connection with this presentation
This presentation includes assumptions, estimates, forecasts and other forward-looking statements,
including statements about our beliefs and expectations regarding future developments as well as their
effect on the results of Continental. These statements are based on plans, estimates and projections
as they are currently available to the management of Continental. Therefore, these statements speak
only as of the date they are made, and we undertake no obligation to update publicly any of them in
light of new information or future events. Furthermore, although the management is of the opinion that
these statements, and their underlying beliefs and expectations, are realistic or of the date they are
made, no guarantee can be given that the expected developments and effects will actually occur.
Many factors may cause the actual development to be materially different from the expectations
expressed here. Such factors include, for example and without limitation, changes in general economic
and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of
competing products, the lack of acceptance for new products or services and changes in business
strategy.
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
27 / © Continental AG
Contact
Equity and Debt Markets Relations
Vahrenwalder Str.9
30165 Hannover
Germany
Telephone: +49 511 938 1163
Fax: +49 511 938 1080
e-mail: [email protected]
www.continental-ir.com
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
28 / © Continental AG
Rolf Woller
Telephone: +49 511 938 1068
e-mail: [email protected]
Gabriele Collatz
Telephone: +49 511 938 1915
e-mail: [email protected]
Continental
Financial Calendar
2010
Annual Financial Press Conference February 23, 2010
Annual Shareholders’ Meeting
April 28, 2010
Q1 Financial Report
May 4, 2010
HY Financial Report
July 29, 2010
9M Financial Report
November 3, 2010
2011
Annual Financial Press Conference February 2011
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
29 / © Continental AG
Continental
Share Data / ADR Data
Share Data
Bloomberg ticker
Reuters ticker
ISIN number
Shares outstanding
as of March 31, 2010
ADR Data
Ratio (Ordinary share ADR)
Bloomberg ticker
Reuters ticker
ISIN number
Type
Trading
Sponsor
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
30 / © Continental AG
CON GY
CONG.DE
DE0005439004
200,005,983
1:1
CTTAY
CTTAY.PK
US2107712000
Level 1
OTC
Deutsche Bank Trust
Company Americas
Back-up
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
31 / © Continental AG
Completion of the Executive Board – 160 Years of Experience
Supervisory Board headed by Prof. Dr. Wolfgang Reitzle
Wolfgang Schäfer
Chief Financial Officer
Finance; Controlling; Law; IT
23 years of industry experience
Dr. Elmar Degenhart (CEO)
Chairman of the Executive Board
Heinz-Gerhard Wente
ContiTech Division
Director of HR and Labor relations
30 years of industry experience
Nikolai Setzer
PLT Tires Division
13 years of industry experience
Dr. Hans-Joachim Nikolin
CV Tires Division
Purchasing
20 years of industry experience
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
32
AUTOMOTIVE GROUP
RUBBER GROUP
Quality & Environment; Corp. Comm.
17 years of industry experience
Dr. Ralf Cramer
Chassis & Safety Division
14 years of industry experience
José Avila
Powertrain Division
20 years of industry experience
Helmut Matschi
Interior Division
23 years of industry experience
Highlights
Cash Flow (Q1 2008 to Q1 2010)
144.9
210.0
19.1
162.3
(€ millions)
Q1/09
Q1/10
-566.7
-363.2
-316.7
-167.2
-271.4
-335.8
-196.0
-295.3
Q1/08
CF from operating
activities
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
33 / © Continental AG
CF used for investing
activities
Free cash flow
Gearing (%)
Highlights
Operations Q1 2010: Volumes Overview
Volum es (YOY chg.)
Q1/09
H1/09
9M/09
FY 09
Q1/10
EU production *
NAFTA production
-39%
-51%
-32%
-56%
-26%
-41%
-21%
-32%
33%
73%
ESC
ABS
Booster
Caliper
Engine ECUs
Injectors
NOx sensors
-38%
-47%
-34%
-45%
-31%
-37%
-28%
-36%
-20%
-28%
-20%
-30%
-8%
-17%
-8%
-18%
71%
71%
62%
59%
54%
90%
41%
-24%
-31%
-26.3%
-23%
-33%
-26.8%
-17%
-30%
-23.2%
-11%
-23%
-17.8%
28%
18%
22.9%
PLT RT Europe *
PLT RT NAFTA
-10%
-14%
-11%
-12%
-9%
-6%
-6%
-3%
11%
10%
CVT OE Europe
CVT OE NAFTA
CVT RT Europe
CVT RT NAFTA
-56%
-45%
-33%
-28%
-65%
-49%
-30%
-23%
-64%
-46%
-24%
-18%
-64%
-41%
-23%
-18%
-3%
14%
38%
27%
PLT tires volumes
CVT tire volumes
CT organic sales grow th
Market data tires
* All market data are based on prel. findings
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
34 / © Continental AG
Highlights
Financial Highlights Q1 2010 vs. Q1 2009
Sales
Increase of 39.4% to € 5,996.7 mn;
Organic sales +38.5%
EBITDA
Increased by € 638.8 mn to € 888.3 mn (PY € 249.5 mn)
EBIT
Increase to € 494.4 mn (PY € -165.0 mn)
Adj. EBIT* increased to € 604.7 mn (10.2% margin);
PPA** effect € -112.6 mn; total special effects € -0.4 mn
NIAT***
Increased by 495.0 mn to € 227.7 mn (PY € -267.3 mn)
EPS/Div
EPS of € 1.14 (PY: € -1.58)
EPS w/o PPA** € 1.54 (PY: € -0.91)
Capex
Capex decreased by € 61.7 mn to € 178.1 mn; Capex ratio at 3.0% of sales
Capex to depreciation coverage 0.45x
R&D
Expenses for research and development down by € 11.5 mn to € 375.0 mn;
R&D ratio at 6.3% (PY 9.0%)
Cash flow
Operating cash flow improved by € 99.3 mn to € -196.0 mn
Net Debt
Net indebtedness down by € 663.6 mn from YE 2009 to € 8,231.9 mn;
Gearing at 144.9%; liquidity and undrawn credit lines at Q1 10 at € 3.56 bn
* w/o amortization of intangibles from PPA, consolidation and special effects; ** amortization of intangibles from PPA; *** attributable to the shareholders of the parent,
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
35 / © Continental AG
Financials Automotive Group
Chassis & Safety
Sales increase of 56.0% before
consolidation and FX effects
(€ millions)
1,452.9
Sales
EBITDA
56.3%
224.1
866.7
1,354.4
234.2%
229.6
EBITDA increased by
€ 160.9 mn (PY € 68.7 mn)
EBIT increased by € 163.6 mn
to € 149.0 mn
Adj. EBIT increased by
€ 162.7 mn to € 163.1 mn
68.7
EBITDA margin
17.0%
15.4%
Special effects € -0.8 mn
7.9%
Q1/08
Q1/09
0.4 *
adj. EBIT
adj. EBIT margin
*
**
0.0%
Q1/10
163.1**
12.0%
EBIT w/o amortization of intangibles PPA, consolidation (€ +0.2 mn) and special effects (€ -1.7 mn)
EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -0.8 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
36 / © Continental AG
PPA effect in Q1: € -13.3 mn
Financials Automotive Group
Powertrain
Sales increase of 61.5% before
consolidation and FX effects
(€ millions)
Sales
1,294.4
60.1%
EBITDA
121.8
690.5
1,105.5
323.6%
83.4
9.4%
7.5%
-5.4%
Q1/08
*
**
Q1/09
Q1/10
adj. EBIT
-102.0 *
22.0 **
adj. EBIT margin
-15.1%
2.0%
EBIT w/o amortization of intangibles PPA, consolidation (€ -1.2 mn) and special effects (€ -2.7 mn)
EBIT w/o amortization of intangibles PPA, consolidation (€ +1.7 mn) and special effects (€ -1.3 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
37 / © Continental AG
EBIT increased by € 128.7 mn
to € -21.6 mn
Adj. EBIT increased by
€ 124.0 mn to € 22.0 mn
PPA effect in Q1: € -44.0 mn
-37.3
EBITDA margin
EBITDA increased by
€ 120.7 mn to € 83.4 mn
Special effects € -1.3 mn
Financials Automotive Group
Interior
Sales increase of 35.9% before
consolidation and FX effects
(€ millions)
Sales
1,656.6
35.3%
1,340.3
EBITDA
192.3
990.6
14.7
EBITDA margin
11.6%
EBIT increased by € 156.3 mn
to € 54.9 mn
985.0%
159.5
11.9%
*
**
Q1/09
Q1/10
adj. EBIT
-44.3 *
114.8 **
adj. EBIT margin
-4.6%
8.6%
EBIT w/o amortization of intangibles PPA, consolidation (€ +2.4 mn) and special effects (€ -4.8 mn)
EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -6.1 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
38 / © Continental AG
Adj. EBIT increased by
€ 159.1 mn to € 114.8 mn
PPA effect in Q1: € -53.8 mn
Special effects € -6.1 mn
1.5%
Q1/08
EBITDA increased by
€ 144.8 mn to € 159.5 mn
Financials Rubber Group
Passenger and Light Truck Tires
(€ millions)
28.7%
Sales
1,283.0
EBITDA increased by € 124.2 mn
to € 274.2 mn
1,202.9
997.1
274.2
82.8%
EBITDA
197.7
16.4%
Q1/08
*
**
15.0%
Q1/09
Q1/10
Total special effects € -5.8 mn
96.9 *
219.6 **
adj. EBIT margin
9.7%
17.4%
EBIT w/o amortization of intangibles PPA, consolidation (€ +0.1 mn) and special effects (€ -4.1 mn)
EBIT w/o amortization of intangibles PPA, consolidation (€ +1.9 mn) and special effects (€ -5.8 mn)
39 / © Continental AG
Volumes (worldwide) up by 28%
due to strong OE business (OE up
by 48%) and strong RT volumes in
RT Americas (up by 39%) and
Europe (up by 15%)
Raw material prices almost
neutral in Q1 2010
adj. EBIT
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
EBIT increased by € 122.7 mn
to € 214.7 mn
Adj. EBIT increased by
€ 122.7 mn to € 219.6 mn
150.0
21.4%
EBITDA margin
Sales increase of 24.8% before
consolidation and FX effects
Financials Rubber Group
Commercial Vehicle Tires
(€ millions)
Sales
Sales increase of 14.4 % before
consolidation and FX effects
328.3
18.0%
280.8
238.0
EBITDA
25.9
Adj. EBIT increased by
€ 20.4 mn to € 7.2 mn
9.2%
2.9%
Volumes ww up by 18%;
RT Europe up by 35%; RT
Americas up by 41%; OE Europe
again down by 7%
Q1/09
Raw material prices already
impacted Q1 2010 slightly
275.4%
EBITDA margin
Q1/08
*
**
EBIT increased by € 19.6 mn
to € 5.9 mn
31.6
9.6%
6.9
Q1/10
adj. EBIT
-13.2*
7.2 **
adj. EBIT margin
-5.6%
2.6%
EBIT w/o amortization of intangibles PPA, consolidation (€ -0.1 mn) and special effects (€ -0.3 mn)
EBIT w/o amortization of intangibles PPA, consolidation (€ -0.9 mn) and special effects (€ -0.4 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
40 / © Continental AG
EBITDA increased by € 19.0 mn to
€ 25.9 mn
Total special effects € -0.4 mn
Financials Rubber Group
ContiTech
(€ millions)
Sales increase of 22.9% before
consolidation and FX effects
798.4
Sales
23.5%
702.3
568.7
99.0%
EBITDA
EBITDA margin
115.8
EBIT increased by € 57.6 mn
to € 92.2 mn
16.5%
Adj. EBIT increased by € 56.2
mn to € 93.2 mn
125.6
15.7%
EBITDA increased by € 57.6 mn
to € 115.8 mn
58.2
OE sales up by 50% vs. Q1 09;
Aftermarket sales up 24% and
industrial sector sales on par
with previous years
10.2%
Mix OE / non-OE: 55/45
Q1/08
Q1/09
Q1/10
adj. EBIT
37.0 *
93.2 **
adj. EBIT margin
6.6%
13.3%
* EBIT w/o amortization of intangibles PPA, consolidation (€ +0.4 mn) and special effects (€ -2.2 mn)
** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -0.4 mn)
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
41 / © Continental AG
Total special effects € -0.4 mn
Quarterly Sales Analysis
(€ millions)
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Other / Consolidation
Continental Corporation
Q1
1.452,9
1.294,4
1.656,6
1.202,9
328,3
798,4
-94,1
6.639,4
Changes Y-o-Y in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
42 / © Continental AG
Q2
1.442,3
1.076,0
1.639,0
1.332,9
357,1
832,5
-65,2
6.614,6
2008
Q3
1.224,4
912,9
1.387,4
1.326,0
385,5
741,4
-85,6
5.892,0
Q4
FY
1.014,4 5.134,0
756,7
4.040,0
1.173,7 5.856,7
1.238,5 5.100,3
333,3
1.404,2
634,7
3.007,0
-58,6
-303,5
5.092,7 24.238,7
Q1
866,7
690,5
990,6
997,1
238,0
568,7
-49,6
4.302,0
Q2
1.049,4
797,0
1.013,7
1.118,1
239,8
588,3
-45,1
4.761,2
2009
Q3
1.188,9
907,4
1.150,5
1.240,7
288,7
614,1
-53,3
5.337,0
Q1
-40,3
-46,7
-40,2
-17,1
-27,5
-28,8
-35,2
Q2
-27,2
-25,9
-38,2
-16,1
-32,8
-29,3
-28,0
Q3
-2,9
-0,6
-17,1
-6,4
-25,1
-17,2
-9,4
Q4
FY
1.268,6 4.373,6
1.004,3 3.399,2
1.207,9 4.362,7
1.340,5 4.696,4
299,1
1.065,6
635,0
2.406,1
-59,9
-207,9
5.695,5 20.095,7
Q4
25,1
32,7
2,9
8,2
-10,3
0,0
11,8
FY
-14,8
-15,9
-25,5
-7,9
-24,1
-20,0
-17,1
2010
Q1
1.354,4
1.105,5
1.340,3
1.283,0
280,8
702,3
-69,6
5.996,7
Q1
56,3
60,1
35,3
28,7
18,0
23,5
39,4
Quarterly EBITDA Analysis
(€ millions)
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Other / Consolidation
Continental Corporation
Q1
224,1
121,8
192,3
197,7
31,6
125,6
-9,1
884,0
Q2
233,1
72,2
184,1
237,3
36,7
137,8
-10,4
890,8
2008
Q3
186,8
-4,8
90,1
192,7
27,2
117,0
-12,6
596,4
Q4
145,9
-107,6
90,8
245,8
16,9
49,7
-41,3
400,2
FY
789,9
81,6
557,3
873,5
112,4
430,1
-73,4
2.771,4
Q1
68,7
-37,3
14,7
150,0
6,9
58,2
-11,7
249,5
Q2
153,3
5,4
-30,9
249,0
20,7
61,7
-11,5
447,7
2009
Q3
205,6
-31,1
-5,3
283,2
11,1
80,0
-102,9
440,6
Q4
174,0
49,7
41,9
110,9
8,8
74,1
-6,0
453,4
FY
601,6
-13,3
20,4
793,1
47,5
274,0
-132,1
1.591,2
2010
Q1
229,6
83,4
159,5
274,2
25,9
115,8
-0,1
888,3
Q1
15,4
9,4
11,6
16,4
9,6
15,7
13,3
Q2
16,2
6,7
11,2
17,8
10,3
16,6
13,5
Q3
15,3
-0,5
6,5
14,5
7,1
15,8
10,1
Q4
14,4
-14,2
7,7
19,8
5,1
7,8
7,9
FY
15,4
2,0
9,5
17,1
8,0
14,3
11,4
Q1
7,9
-5,4
1,5
15,0
2,9
10,2
5,8
Q2
14,6
0,7
-3,0
22,3
8,6
10,5
9,4
Q3
17,3
-3,4
-0,5
22,8
3,8
13,0
8,3
Q4
13,7
4,9
3,5
8,3
2,9
11,7
8,0
FY
13,8
-0,4
0,5
16,9
4,5
11,4
7,9
Q1
17,0
7,5
11,9
21,4
9,2
16,5
14,8
Q1
-69,3
-130,6
-92,4
-24,1
-78,2
-53,7
-71,8
Q2
-34,2
-92,5
-116,8
4,9
-43,6
-55,2
-49,7
Q3
10,1
-547,9
-105,9
47,0
-59,2
-31,6
-26,1
Q4
19,3
146,2
-53,9
-54,9
-47,9
49,1
13,3
FY
-23,8
-116,3
-96,3
-9,2
-57,7
-36,3
-42,6
Q1
234,2
323,6
985,0
82,8
275,4
99,0
256,0
EBITDA margin in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Changes Y-o-Y in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
43 / © Continental AG
Quarterly Analysis of adjusted EBIT*
(€ millions)
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Other / Consolidation
Continental Corporation
Q1 restated
0,4
-102,0
-44,3
96,9
-13,2
37,0
-11,5
-36,7
Q2
2009
Q3
Q4
FY
Q1
163,1
22,0
114,8
219,6
7,2
93,2
-15,2
604,7
Q2
2010
Q3
Q4
FY
Q1 restated
0,0
-15,1
-4,6
9,7
-5,6
6,6
-0,9
Q2
Q3
Q4
FY
Q1
12,0
2,0
8,6
17,4
2,6
13,3
10,2
Q2
Q3
Q4
FY
Q1
40.675,0
121,6
359,1
126,6
154,5
151,9
1.747,7
Q2
Q3
Q4
FY
Adjusted EBIT margin in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Changes Y-o-Y in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
* EBIT w/o amortization of intangibles from PPA, consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
44 / © Continental AG
Quarterly EBIT Analysis
(€ millions)
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Other / Consolidation
Continental Corporation
Q1
141,1
-10,1
81,0
142,2
12,2
100,4
-10,1
456,7
Q2
150,4
-38,8
46,9
179,1
16,1
112,7
-10,7
455,7
2008
Q3
103,2
-127,5
-32,6
133,5
6,8
92,3
-13,0
162,7
Q4
-91,6
-869,8
-557,9
171,6
-5,6
23,7
-41,7
-1.371,3
FY
303,1
-1.046,2
-462,6
626,4
29,5
329,1
-75,5
-296,2
Q1
-14,6
-150,3
-101,4
92,0
-13,7
34,6
-11,6
-165,0
Q2
71,0
-102,4
-143,0
190,8
-0,3
34,9
-12,2
38,8
2009
Q3
-252,6
-603,6
-202,5
221,4
-25,1
54,2
-103,6
-911,8
Q4
93,7
-86,9
-69,1
32,2
-11,0
45,7
-7,0
-2,4
FY
-102,5
-943,2
-516,0
536,4
-50,1
169,4
-134,4
-1.040,4
2010
Q1
149,0
-21,6
54,9
214,7
5,9
92,2
-0,7
494,4
Q1
9,7
-0,8
4,9
11,8
3,7
12,6
6,9
Q2
10,4
-3,6
2,9
13,4
4,5
13,5
6,9
Q3
8,4
-14,0
-2,3
10,1
1,8
12,4
2,8
Q4
-9,0
-114,9
-47,5
13,9
-1,7
3,7
-26,9
FY
5,9
-25,9
-7,9
12,3
2,1
10,9
-1,2
Q1
-1,7
-21,8
-10,2
9,2
-5,8
6,1
-3,8
Q2
6,8
-12,8
-14,1
17,1
-0,1
5,9
0,8
Q3
-21,2
-66,5
-17,6
17,8
-8,7
8,8
-17,1
Q4
7,4
-8,7
-5,7
2,4
-3,7
7,2
0,0
FY
-2,3
-27,7
-11,8
11,4
-4,7
7,0
-5,2
Q1
11,0
-2,0
4,1
16,7
2,1
13,1
8,2
Q1
-110,3
-1.388,1
-225,2
-35,3
-212,3
-65,5
-136,1
Q2
-52,8
-163,9
-404,9
6,5
-101,9
-69,0
-91,5
Q3
-344,8
-373,4
-521,2
65,8
-469,1
-41,3
-660,4
Q4
202,3
90,0
87,6
-81,2
-96,4
92,8
99,8
FY
-133,8
9,8
-11,5
-14,4
-269,8
-48,5
-251,2
Q1
1.120,5
85,6
154,1
133,4
143,1
166,5
399,6
EBIT margin in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Changes Y-o-Y in %
C&S
Powertrain
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
ContiTech
Continental Corporation
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
45 / © Continental AG
Consolidated Income Statements
(€ millions)
Reconciliation of EBIT to net income
Q1 2010
Q1 2009
Chassis & Safety
149,0
-14,6
Powertrain
-21,6
-150,3
54,9
-101,4
214,7
92,0
5,9
-13,7
ContiTech
92,2
34,6
Other / consolidation
-0,7
-11,6
494,4
-165,0
-153,7
-127,9
Earnings before income taxes
340,7
-292,9
Income tax expense
-96,4
31,1
Minority interests
-16,6
-5,5
Net income attributable to the shareholders of the parent
227,7
-267,3
Earnings per share (in EUR)
1,14
-1,58
Diluted earnings per share (in EUR)
1,14
-1,58
200,0
169,0
Interior
Passenger and Light Truck Tires
Commercial Vehicle Tires
EBIT
Net interest expense
Number of Shares
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
46 / © Continental AG
Consolidated Balance Sheets
Assets
Assets in € millions
March 31, 2009
Goodwill
5.622,5
5.536,6
6.420,2
Other intangible assets
2.000,5
2.068,7
2.450,7
Property, plant, and equipment
5.869,2
5.784,3
6.113,9
18,8
19,3
19,8
392,7
398,0
665,7
8,0
8,0
14,2
777,2
728,9
491,0
Deferred pension charges
71,1
70,8
88,9
Long-term derivative instruments and interest-bearing investments
83,7
78,4
20,8
Other long-term financial assets
20,2
18,9
33,3
Other assets
12,2
12,7
9,4
14.876,1
14.724,6
16.327,9
Inventories
2.333,5
2.076,0
2.568,4
Trade accounts receivable
4.501,3
3.648,1
3.456,0
Other short-term financial assets
212,4
184,9
154,7
Other assets
618,3
540,5
623,1
Income tax receivable
114,2
94,2
134,5
18,7
25,8
27,0
1.410,3
1.712,8
1.206,5
14,1
42,3
46,5
9.222,8
8.324,6
8.216,7
24.098,9
23.049,2
24.544,6
Investment properties
Investments in associates
Other investments
Deferred tax assets
Non-current assets
Short-term derivative instruments and interest-bearing investments
Cash and cash equivalents
Assets held for sale
Current assets
Total assets
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
47 / © Continental AG
March 31, 2010 Dec. 31, 2009
Consolidated Balance Sheets
Shareholders’ Equity and Liabilities
Total equity and liabilities in € millions
Common stock
March 31, 2010
Dec. 31, 2009
March 31, 2009
512,0
432,6
432,6
4.137,3
3.139,5
3.120,9
864,1
636,4
2.017,7
-153,9
-435,9
-579,3
5.359,5
3.772,6
4.991,9
321,6
289,1
265,1
Total equity
5.681,1
4.061,7
5.257,0
Provisions for pension liabilities and other post-employment benefits
1.383,0
1.345,0
771,3
Deferred tax liabilities
196,5
196,5
398,9
Long-term provisions for other risks
357,3
351,7
418,1
5.990,8
5.967,7
9.621,5
36,3
36,2
44,1
Non-current liabilities
7.963,9
7.897,1
11.253,9
Trade accounts payable
2.946,2
2.819,5
2.340,4
722,4
644,7
523,1
Short-term provisions for other risks
1.325,3
1.342,9
972,1
Indebtedness
3.753,8
4.744,8
2.674,3
Other short-term financial liabilities
900,2
880,3
879,1
Other liabilities
801,9
648,1
603,6
4,1
10,1
41,1
Current liabilities
10.453,9
11.090,4
8.033,7
Total equity and liabilities
24.098,9
23.049,2
24.544,6
Capital reserves
Retained earnings
Other comprehensive income
Equity attributable to the shareholders of the parent
Minority interests
Long-term portion of indebtedness
Other non-current liabilities
Income tax payable
Liabilities held for sale
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
48 / © Continental AG
Consolidated Cash Flow Statements
in € millions
2010
2009
EBIT
Interest paid
Interest received
Income tax paid
Dividends received
Depreciation and amortization
At-equity share in earnings of associates and accrued dividend income from other investments
Gains/losses from the disposal of assets, subsidiaries and business units
Other non-cash items
Changes in
inventories
trade accounts receivable
trade accounts payable
pension and post-employment provisions
other assets and liabilities
494,4
-243,9
6,5
-63,4
19,3
393,9
-16,5
0,9
-14,5
-165,0
-246,1
10,6
-38,8
33,5
414,5
-6,4
-0,3
—
-174,1
-716,4
33,2
21,8
62,8
43,4
-119,5
-160,6
119,6
-180,2
Cash flow provided by operating activities
-196,0
-295,3
Proceeds on disposal of property, plant, equipment and intangible assets
Capital expenditure on property, plant, equipment and software
Capital expenditure on intangible assets from development projects
Proceeds on disposal of subsidiaries and business units, including surrendered cash and cash equivalents
Acquisition of subsidiaries and business units, incl. acquired cash and cash equivalents
Interest bearing advances
7,4
-178,0
-11,0
23,8
-9,4
0,0
11,6
-239,8
-1,3
-0,4
-42,9
1,4
Cash used for investing activities
-167,2
-271,4
Cash flow before financing activities
Change in indebtedness
Proceeds from the issuance of shares
Dividends paid and repayment of capital to minority interests
Cash flow provided by/used for financing activities
Change in cash and cash equivalents
-363,2
-566,7
-1.058,8
1.056,8
-0,9
192,4
—
-6,0
-2,9
186,4
-366,1
-380,3
Cash and cash equivalents at the beginning of the reporting period
Effect of exchange rate changes on cash and cash equivalents
1.712,8
63,6
1.569,4
17,4
Cash and cash equivalents at the end of the reporting period
1.410,3
1.206,5
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
49 / © Continental AG
January 1 to March 31
First Quarter Results 2010 Reported and Adjusted
By Division
(€ millions)
Chassis & Safety
2009
2010
Powertrain
2009
2010
Interior
2009
2010
PLT
2009
2010
CVT
2009
2010
ContiTech
2009
2010
Cons./Corr.
2009
2010
EBIT
-14.6
149.0
-150.3
-21.6
-101.4
54.9
92.0
214.7
-13.7
5.9
34.6
92.2
RoS
-1.7%
11.0%
-21.8%
-2.0%
-10.2%
4.1%
9.2%
16.7%
-5.8%
2.1%
6.1%
13.1%
13.5
13.3
44.4
44.0
54.7
53.8
0.9
1.0
0.1
0.0
0.6
0.6
0.1
1.7
0.8
2.7
1.3
4.8
6.1
4.1
5.8
0.3
0.4
2.2
0.4
-0.2
0.0
1.2
-1.7
-2.4
0.0
-0.1
-1.9
0.1
0.9
-0.4
1.5
0.8
3.9
-0.4
2.4
6.1
4.0
3.9
0.4
1.3
1.8
0.4
163.1
-102.0
22.0
-44.3
114.8
96.9
219.6
-13.2
7.2
0.0%
12.0%
-15.1%
2.0%
-4.6%
8.6%
9.7%
17.4%
-5.6%
2.6%
Amortization of intangible assets from PPA
Total special effects
Total consolidation effects *
Total consolidation & special effects
Adjusted EBIT **
adj. RoS
*
Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated),
disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009
Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010
** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
50 / © Continental AG
-11.6
-0.7
Group
2009
2010
-165.0
494.4
-3.8%
8.2%
-0.1
114.3
112.6
0.0
-14.4
15.8
0.4
0.0
0.0
0.0
-1.8
-2.7
0.4
0.0
-14.4
14.0
-2.3
37.0
93.2
-11.5
-15.2
-36.7
604.7
6.6%
13.3%
-0.9%
10.2%
First Quarter Results 2010 Reported and Adjusted
Automotive and Rubber Group
(€ millions)
Q1 2010
Automotive
2009
2010
Rubber
2009
2010
Cons./Corr.
2009
2010
-11.6
EBIT
-266.3
182.3
112.9
312.8
RoS
-10.6%
4.8%
6.3%
14.0%
112.6
111.1
1.6
1.6
0.1
9.2
8.2
6.6
6.6
-1.4
-1.7
-0.4
7.8
6.5
-145.9
-5.9%
Amortization of intangible assets from PPA
Total special effects
Total consolidation effects *
Total consolidation & special effects
Adjusted EBIT **
adj. RoS
*
-0.7
Group
2009
2010
-165.0
494.4
-3.8%
8.2%
-0.1
114.3
112.6
0.0
-14.4
15.8
0.4
-1.0
0.0
0.0
-1.8
-2.7
6.2
5.6
0.0
-14.4
14.0
-2.3
299.9
120.7
320.0
-11.5
-15.2
-36.7
604.7
8.0%
6.8%
14.5%
-0.9%
10.2%
Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated),
disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009
Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010
** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects
Equity and Debt Markets Relations (EDMR)
Citigroup Roadshow Frankfurt & London – May 10/11, 2010
51 / © Continental AG

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