Continental : Annual Report 2021 (PDF)

Progress Arises from Change.

Annual Report 2021

Continental Group 2021

• Sales from continuing operations at €33.8 billion
• Free cash flow from continuing and discontinued operations at €1,372.4 million
• Equity ratio at 35.3%

Continental successfully completed the spin-off of Vitesco Technologies in 2021. Unless otherwise stated, reporting is based on continuing operations in accordance with IFRS 5, Non-currentAssets Held for Sale and Discontinued Operations. The term "Continental Group" is generally used in this annual report to refer to continuing operations.

Key Figures

The following table generally shows the figures for continuing operations, whereby free cash flow (continuing and discontinued operations), net income attributable to the shareholders of the parent, and earnings per share refer to continuing and discontinued operations.

€ millions	2021	2020	∆ in %
Sales	33,765.2	31,864.4	6.0
EBITDA	4,104.2	2,763.5	48.5
in % of sales	12.2	8.7
EBIT	1,845.8	-428.0	531.3
in % of sales	5.5	-1.3
Net income attributable to the shareholders of the parent	1,455.0	-961.9	251.3
Basic earnings per share in €	7.28	-4.81	251.3
Diluted earnings per share in €	7.28	-4.81	251.3
Adjusted sales1	33,754.3	31,648.8	6.7
Adjusted operating result (adjusted EBIT)2	1,900.4	1,379.9	37.7
in % of adjusted sales	5.6	4.4
Free cash flow (continuing operations)	1,070.3	1,317.0	-18.7
Free cash flow (continuing and discontinued operations)	1,372.4	878.7	56.2
Net indebtedness	3,765.5	n. a.
Gearing ratio in %	29.8	n. a.
Total equity	12,643.2	n. a.
Equity ratio in %	35.3	n. a.
Number of employees as at December 313	190,875	195,896	-2.6
Dividend per share in €	2.204	-
Share price at year end5 in €	93.11	108.32	-14.0
Share price at year high5 in €	118.53	113.01
Share price at year low5 in €	87.53	45.96

1 Before changes in the scope of consolidation.

2 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

3 Excluding trainees.

4 Subject to the approval of the Annual Shareholders' Meeting on April 29, 2022.

5 All market prices are quotations of the Continental share in the Xetra system of Deutsche Börse AG. In order to improve comparability, figures prior to September 16, 2021, have been adjusted to account for the effect from the spin-off of Vitesco Technologies. Data source: Bloomberg.

Structure of the Continental Group in 20211

Continental Group

Sales:

billion; Employees: 190,875

Automotive Technologies

Rubber Technologies

Contract Manufacturing

Sales:

billion

Sales:

billion

Sales:

billion

Employees: 89,350

Employees: 98,177

Employees: 2,904

Autonomous Mobility

Vehicle Networking

Tires

ContiTech

Contract Manufacturing

and Safety

and Information

Sales:

billion

Sales:

billion

Sales:

billion

Sales:

billion

Sales:

billion

Employees: 44,579

Employees: 44,771

Employees: 57,217

Employess: 40,960

Employees: 2,904

Advanced Driver

Commercial Vehicles

Original Equipment

Advanced Dynamics

Contract Manufacturing

Assistance Systems

and Services

Replacement APAC

Solutions

Hydraulic Brake Systems

Connected Car

Replacement EMEA

Conveying Solutions

Networking

Passive Safety and

Replacement

Industrial Fluid Solutions

Sensorics

Human Machine

The Americas

Mobile Fluid Systems

Interface

Vehicle Dynamics

Specialty Tires

Power Transmission

Group

Surface Solutions

	Automotive Technologies		Rubber Technologies	Contract Manufacturing
2021	2020	in %	2021	2020	in %	2021	2020	in %
	15,357.4	15,435.6	0.5	17,608.7		15,639.5	12.6	889.6	969.9	8.3
	666.8	382.3	74.4	3,359.6		2,493.6	34.7	194.2	22.1	978.7
	4.3	2.5		19.1		15.9		21.8	2.3
	374.6	1,494.9	74.9	2,215.3		1,266.4	74.9	130.4	94.0	238.7
	2.4	9.7		12.6		8.1		14.7	9.7
	15,346.6	15,242.5	0.7	17,608.6		15,617.0	12.8	889.6	969.9	8.3
	197.1	335.1	41.2	2,186.1		1,759.4	24.3	104.0	55.8	86.4
	1.3	2.2		12.4		11.3		11.7	5.8

"In the past, mobility was mostly about horsepower. Now it's about sustainability, safety and connectivity. This change brings progress, which we are actively shaping. The new horsepower of mobility continues to bear the hallmark of Continental."

Nikolai Setzer

Chairman of the Executive Board

Find out more in our online magazine:

mag.continental.com

Contents

C2	23
To Our Shareholders	Management Report

Key Figures for the Continental Group	C2
Overview of the Continental Group
and Key Figures	C3
Chairman's Letter	4
Members of the Executive Board	6
Continental Shares and Bonds	7
Corporate Governance	10
Report of the Supervisory Board	10
Corporate Governance Declaration Pursuant
to Section 289f of the German Commercial
Code (HGB)	15
Compliance	22

Glossary of Financial Terms	24
Corporate Profile	26
Structure of the Continental Group	26
Strategy of the Continental Group	29
Corporate Management	31
Research and Development	34
Sustainability and Combined Non-Financial
Statement	36
Information on Reporting	36
Sustainability Management in the
Continental Group	37
Development of Material Topics	38
Information in Accordance with the
EU Taxonomy Regulation	44
Information on the Development of Other
Sustainability Topics	46

Economic Report	47
General Conditions	47
Macroeconomic Development	47
Development of Key Customer Sectors
and Sales Regions	47
Development of Raw Materials Markets	49
Earnings, Financial and Net Assets Position	50
Earnings Position	51
Financial Position	60
Net Assets Position	62
Automotive Technologies	66
Development of the Autonomous Mobility
and Safety Business Area	67
Development of the Vehicle Networking
and Information Business Area	69
Rubber Technologies	71
Development of the Tires Business Area	72
Development of the ContiTech Business Area	74
Contract Manufacturing	76
Development of the Contract Manufacturing
Business Area	77