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Financials Press Conference February 22, 2007 Preliminary Results 2006.

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Presentation on theme: "Financials Press Conference February 22, 2007 Preliminary Results 2006."— Presentation transcript:

1 Financials Press Conference February 22, 2007 Preliminary Results 2006

2 Financials Press Conference, February 22, 2007 Preliminary results 2006 2 - © Continental AG Continental Corporation 2006 "We kept our word."

3 Financials Press Conference, February 22, 2007 Preliminary results 2006 3 - © Continental AG Continental Corporation Sales and EBIT improved for the fifth time in a row Continental will keep on track for success in 2007

4 Financials Press Conference, February 22, 2007 Preliminary results 2006 4 - © Continental AG Continental Corporation 2006 Sales rose 7.6% to €14.887 billion EBIT up 6.3% to €1,601.9 million despite €317 million increase in raw material costs Net income attributable to the shareholders of the parent improved by 5.6% to €981.9 million Dividend to be increased by 100% to €2.00 per share Employees benefiting from success of company thanks to higher voluntary profit sharing

5 Financials Press Conference, February 22, 2007 Preliminary results 2006 5 - © Continental AG Continental Corporation 2006 Approx. €800 million spent on acquisitions €630 million transferred to contractual trust arrangement Approx. €800 million invested Innovative strength further reinforced with some €680 million for research and development

6 Financials Press Conference, February 22, 2007 Preliminary results 2006 6 - © Continental AG Continental Maintains Successful Long-Term Strategy in € millions * HGB (German Commercial Code) **IFRS EBITASales x 2,60 x 4,98

7 Financials Press Conference, February 22, 2007 Preliminary results 2006 7 - © Continental AG Financial Facts Before changes in the scope of consolidation and exchange rate effects the adjusted sales grow 5.8% EBIT grows to €1,601.9 million; before changes in the scope of consolidation and special effects adjusted EBIT increased by 6.4% Return on sales 10.8% / adjusted value with 11.8% slightly exceeds previous year’s figure ROCE 18.7% / excluding acquisition 21.5% Free cash flow at €746 million (adjusted for effects: payment acquisition of Motorola’s automotive electronic business / CTA) Net indebtedness up by €687.8 million to €1,181.0 million Gearing ratio improved to 25.1% Total shareholder return 2006 amounts to 18.8% / attractive yield

8 Financials Press Conference, February 22, 2007 Preliminary results 2006 8 - © Continental AG Automotive Systems Division in 2006 Sales up 14.6% to €5.994 billion / adjusted before changes in the scope of consolidation and exchange rate effects 4.8% Before changes in the scope of consolidation and special effects adjusted EBIT increased by 6.8% to €639.2 million 14.5 million electronic brake systems and 59 million wheel speed sensors sold Following acquisition of Motorola's automotive electronics business, global market leader in telematics, a field of the future New orders thanks to technical expertise in the integration of active and passive safety Development partnership with Microsoft and Ford for network interface

9 Financials Press Conference, February 22, 2007 Preliminary results 2006 9 - © Continental AG Passenger and Light Truck Tires Division in 2006 Sales up 5.6% to €4.694 billion / adjusted before changes in the scope of consolidation and exchange rate effects 5.3% EBIT at €650.9 million / 13.9% return on sales Before changes in the scope of consolidation and one-time effects adjusted EBIT of €654.8 million 106.3 million tires sold Sales of winter tires increased 8% Significant improvement in passenger and light truck tires business in NAFTA region: Replacement business with substantially positive result OE business still a challenge

10 Financials Press Conference, February 22, 2007 Preliminary results 2006 10 - © Continental AG Commercial Vehicle Tires Division in 2006 Sales grow to €1.468 billion / adjusted before changes in the scope of consolidation and exchange rate effects sales went up 10.5 % EBIT at €136.2 million short of the previous year's figure Return on sales 9.3% Before changes in the scope of consolidation and special effects adjusted EBIT increased to €112.5 million compared to the previous year's figure despite massive raw material costs Capacity expanded at low-cost locations to cater for market growth North American OTR operations sold Expansion in Asia and Eastern Europe Russian market under close observation

11 Financials Press Conference, February 22, 2007 Preliminary results 2006 11 - © Continental AG ContiTech Division in 2006 Sales at €2.867 billion / before changes in the scope of consolidation and exchange rate effects adjusted growth of 6.9% at highest level in several years EBIT doubled to €318.6 million / before changes in the scope of consolidation and special effects adjusted EBIT at €312.4 million Return on sales 11.1% (reported and adjusted) Successful integration of Phoenix Product spectrum broadened in China Orders for air suspension systems in India Acquisition of Thermopol creates good base for growing field of high-temperature hoses

12 Financials Press Conference, February 22, 2007 Preliminary results 2006 12 - © Continental AG Continental More Attractive for Highly-Qualified Young Talent 85,224 employees worldwide – thereof 6,700 engineers and scientists More than 1,300 graduates and young professionals hired Conti-Ambassador program expanded 900 student internships each year Global Engineering Excellence (GEE) Study More than 1,500 apprentices worldwide Continental Universities founded for training and continuing education at international locations Sustained and successful focus on labor cost management

13 Financials Press Conference, February 22, 2007 Preliminary results 2006 13 - © Continental AG Outlook We expect 2007 to see an increase in consolidated sales of at least 5%. a further improvement in the operating result. a positive free cash flow – before potential acquisitions. In 2007 we intend to spend approximately 4.6% of sales on research and development. to invest approximately 6% of sales. to achieve a better balance sheet structure (acquisitions, organic growth, higher dividend).

14 Financials Press Conference, February 22, 2007 Preliminary results 2006 14 - © Continental AG Thank you for your attention!


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