New Strategic Partnership KSA Riyadh November 03rd 2009
History of Continental AG October 8, 1871 Continental-Caoutchouc- und Gutta-Percha Compagnie is founded in Hanover as a joint stock company. Manufacturing at the main factory in Vahrenwalder Street includes soft rubber products, rubberized fabrics, solid tires for carriages and bicycles. 1882 The rampant horse is adopted as trademark. 1914 Triple victory for Daimlers fitted with Continental tires at the French Grand Prix.
History of Continental AG 1951-55 In close collaboration with Daimler-Benz and Porsche, Continental repeats its pre-war successes on the track. Racing in cars fitted with Continental tires, drivers like Karl Kling, Stirling Moss and Juan Manuel Fangio win the 1952 Carrera Panamericana and the French, British, Dutch and Italian Grand Prix. 1967 Opening of the Contidrom tire testing facility on the edge of the Lüneburg Heath. In 1994/95 the facility is more than doubled in size to enable the construction of new tracks, including a 3.8 kilometer handling course for high-performance cars. In 2001 a 3.7 kilometer track for noise assessment is opened.
History of Continental AG 1979 Takeover of the European tire operations of Uniroyal, Inc., USA, gives Continental a wider base in Europe (photo: Aachen plant). 1998 Acquisition of a US company's Automotive Brake and Chassis unit, the core of which is Alfred Teves GmbH in Frankfurt. Continental Teves and its worldwide operations are integrated into the Automotive Systems division.
History of Continental AG 2007 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.
History of Continental AG 2009 Start of Partnership for Continental brand with Al Mutlak
Continental Worldwide Nearly 190 sites for production and R&D in 35 countries. Headquarters in Hanover, Germany. Status: January 2009
Our Divisions Shape the Megatrends in the Automotive Industry Safety Environment Information Increase in safety systems in the vehicle. Safe mobility. Chassis & Safety Interior Tires ContiTech Conservation of natural resources. Sustained mobility. Powertrain Interior Tires ContiTech Sophisticated information management in the vehicle. Intelligent mobility. Interior Affordable Cars Growing demand for individual mobility in future markets. Chassis & Safety Powertrain Interior Tires ContiTech
Executive Board of Continental Automotive Group Dr. Elmar Degenhart Chassis & Safety Division Dr. Ralf Cramer Powertrain Division Dr. Elmar Degenhart Interior Division Helmut Matschi Chairman Corporate Communications Rubber Group Passenger & Light Truck Tires Division Nikolai Setzer Dr. Hans-Joachim Nikolin ContiTech Division Corporate Functions: Director of Personnel Human Resources Heinz-Gerhard Wente Chief Financial Officer Harald Stuhlmann (acting) Finance Controlling Law IT Commercial Vehicle Tires Division Corporate Functions: Purchasing Quality Environment
Strong Divisions and Business Units Continental Corporation Automotive Group Rubber Group Chassis & Safety Powertrain Interior Passenger and Light Truck Tires Commercial Vehicle Tires ContiTech Electronic Brake Systems Hydraulic Brake Systems Sensorics Passive Safety & ADAS Chassis Components Engine Systems Transmission Hybrid Electric Vehicle Sensors & Actuators Fuel Supply Instrumentation & Driver HMI Infotainment & Connectivity Body & Security Commercial Vehicles & Aftermarket Original Equipment Replacement Business Europe Replacement Business The Americas Replacement Business Asia Two-Wheel Truck Tires Europe Truck Tires Replacement Business The Americas Truck Tires Asia Industrial Tires Air Spring Systems Benecke-Kaliko Group Conveyor Belt Group Elastomer Coatings Fluid Technology Power Trans-mission Group Vibration Control Other Operations
Continental Corporation 2008 2007 Sales €24.2 billion €16.6 billion EBIT1 -€296.2 million €1,675.8 million Adjusted EBIT2 €1,837.3 million €1,841.5 million Net income attributable to the shareholders of the parent -€1,123.5 million €1,020.6 million Employees 139,155 151,654 1Earnings before interest and taxes 2 EBIT before amortization of intangible assets from PPA (Purchase Price Allocation) and before depreciation of tangible assets from PPA (only Siemens VDO) and special effects
Key Figures for the Rubber Group in € millions 2008 2007 PLT Sales 5,100.3 4,975.6 EBIT 626.4 738.7 Adjusted EBIT* 644.8 762.9 Number of employees 26,227 26,281 CVT 1,404.2 1,452.4 29.5 124.1 36.3 113.1 8,247 8,384 ContiTech 3,007.0 3,063.9 329.1 362.8 327.8 357.4 21,680 23,871 Rubber Group in € millions 2008 2007 Sales 9,353.9 9,337.0 EBIT 984.9 1,225.6 Adjusted EBIT* 1,008.8 1,233.4 Number of employees 56,154 58,536 *Before changes in the scope of consolidation and special effects
Company Structure - Tire Sales by Outlet 2008 Product Group OE RE OE / RE Share Total Passenger and Light Truck Tire 40.000.000 71.000.000 36% / 64% 111.000.000 Commercial Vehicle Tires 1.200.000 6.600.000 18% / 82% 6.800.000 41.200.000 77.600.000 35% / 65 % 117.800.000
Passenger and Light Truck Tires Division – Overview/Market Positions The Passenger and Light Truck Tires division develops and manufactures passenger and light truck tires for compact, medium-size, and full-size cars as well as tires for vans, light trucks, and RVs. The focus of its development work is directed toward the improvement of safety-relevant tire properties. No. 4 worldwide Overall market No. 1 in Europe Original equipment sector Winter tires Tuning
Passenger and Light Truck Tires Division– 23 Sites in 13 Countries Europe Czech Republic Finland France Germany Portugal Romania Russia Slovakia South America Brazil Asia Malaysia Otrokovice, Czech Republic Africa South Africa North America Mexico USA Sarreguemines, France Status: January 1, 2009
Commercial Vehicle Tires Division – Overview/Market Positions The Commercial Vehicle Tires division has the goal of ensuring economic mobility in goods transport, passenger transit and construction-site traffic by offering bus, truck, and industrial tires for a wide spectrum of applications and service conditions. In certain regions, off-the-road tires are also available. The division's products are successful both in the original equipment and replacement markets. No. 4 worldwide Overall truck tire market No. 1 in Europe Industrial tires No. 2 in Europe Truck tire original equipment business No. 3 in Europe Truck tires
Commercial Vehicle Tires Division – 12 Sites in 7 Countries Europe Czech Republic Germany Slovakia Asia Malaysia Africa South Africa North America USA Camaçari, Brazil South America Brazil Mount Vernon, Illinois, USA Status: January 1, 2009
Future Vision for Menena Area Tunisia Syria Lebanon Iran Afghanistan Iraq Morocco Israel Jordan Kuwait Algeria Libya Bahrain Saudi Arabia Egypt Qatar UAE Oman Mauretania Yemen
Future Vision for Menena Area: Strategy To build up together with our partners a strong leading position in this strategic part of the world. To develop a long term profitable business growth for our partners and for Continental To create strong brand awareness and gain customer loyalty together by anticipating the market development
Future Vision for Menena Area: Organization Region: Middle East, Near East, North Africa Mauretania Morocco Algeria Tunisia Libya Egypt Israel Syria Jordan Lebanon Saudi Arabia Iran Iraq Afghanistan Yemen Oman UAE Kuwait Qatar Bahrain Dubai Representative Office Middle East Casablanca Representative Office North Africa Algeria Representative Office Algeria Libya Representative Office Libya
Future Vision for Menena Area: Product Multibrand approach Multiproduct presence Market leader in performance segment + UHP & 4x4 segment Development of new products adapted to local conditions + specially truck Expanding PPM + after sales support
Future Vision for Menena Area: Communication First mostly below the line activities. In future above the line investments. Locally adapted advertising support Locally adapted/developed sales promotion + POS, trainings, branding, merchandising Regular coop. events, PR activities Internet presence Deeper integration of MENENA into centrally organized activities
Future Vision for Menena Area: Place Closer to the market needs and trends Selective strongest partners in the market Reduce time to market “Fleet approach concept”
Future Vision for Menena Area: Marketing Intelligence Market research. Intensive market data collecting Price positioning according to local needs Pools regarding the market volume + development Benchmarking with competition Following Market trends, end users behavior
Continental in the Middle East Afghanistan Market Population in Mio Saudi Arabia 28.700.000 Yemen 24.000.000 Oman 3.400.000 UAE 4.800.000 Bahrain 750.000 Qatar 850.000 Iraq 29.000.000 Iran 66.500.000 Kuwait 2.700.000 Afghanistan 33.600.000 Total 194.300.000 Iran Iraq Kuwait Bahrain Qatar Saudi Saudi Arabia UAE Oman Yemen
Continental in the Middle East: New set up with a Rep Office Jebel Ali Free Zone Sales Rep Office Marketing Sales After Sales Afghanistan Iran Iraq Kuwait To understand the market rules To analyze the competition environment To develop our Multibrand and Multiproduct strategy To be closer to our dealers to help them with: Marketing Sales and After sales activities Bahrain Qatar Saudi Arabia Saudi UAE Oman Yemen
Saudi Arabia: Strategic market Saudi Arabia is the largest market in the region and has no tire manufacturers Strict safety measures undertaken by the government regarding tires replacement The tendency towards off-road sports namely SUV’s Market and yearly tire consumption is growing Continental is fitted as OE on one out of every four PCR car manufactured in Europe Leads the market of R19 and above UHP tires (Ultra High Performance)
Saudi Arabia: Almutlak our partner for Continental Brand KSA Why Al Mutlak? Because of…………… The market knowledge and experience in the tire business of Almutlak Group The financial support, the name and the prestige of the Almutlak Group The willingness of Almutlak to take Continental to a leading position in KSA The relationship between Almutlak and Continental Group The trust built up between Conti and Almutlak during years of mutual cooperation Human Resources of Almutlak: The team
Saudi Arabia: Strategy of Al Mutlak and Continental Increase brand awareness Capture market share in all segments together with our strong local partners Development in all distribution channels Strong cooperation with OE Develop product offering according to market requirements Close contact to the market and proactive development Together with our exclusive distributor Al Mutlak as a strong strategic partner we will grow in the strategic market Saudi Arabia