240 Responsibility Statement by the Company’s Legal Representatives 241 Other Directorships – The Executive Board
242 Other Directorships – The Supervisory Board 244 Ten-Year Review – Corporation
245 Glossary of Financial Terms C5 Financial Calendar
C5 Contact and Publication Details
Further Information >
239 Further Information > Contents > Annual Report 2013 > Continental AG
Further Information Responsibility Statement by the Company’s Legal Representatives Annual Report 2013 Continental AG 240
To the best of our knowledge, and in accordance with the ap-plicable reporting principles, the consolidated financial state-ments give a true and fair view of the assets, liabilities, financial position and profit or loss of the corporation, and the manage-ment report of the corporation includes a fair review of the de-velopment and performance of the business and the position of the corporation, together with a description of the principal
opportunities and risks associated with the expected develop-ment of the corporation.
Hanover, February 11, 2014 Continental AG
The Executive Board
Responsibility Statement by the Company’s
Legal Representatives
Further Information Other Directorships – The Executive Board Annual Report 2013 Continental AG 241
List of the positions held by the Executive Board members on statutory supervisory boards and on comparable con-trolling bodies of companies in Germany and abroad in accordance with Section 285 No. 10 of the German Commercial Code (Handelsgesetzbuch – HGB):
Companies with no country specified are located in Germany. Dr. Elmar Degenhart
Chairman
Corporate Communications
Corporate Quality and Environment Continental Business System Automotive Central Functions ContiTech AG, Hanover* (Chairman) José A. Avila
Powertrain Division
Emitec Gesellschaft für Emissionstechnologie mbH, Lohmar (Member of the Board of Directors);
Continental Automotive France SAS, Toulouse, France*; SK Continental E-motion Pte. Ltd., Singapore, Singapore* Dr. Ralf Cramer
Chassis & Safety Division (until July 31, 2013) President & CEO China (since August 1, 2013)
Continental Automotive Changchun Co., Ltd., Changchun, China* (Chairman);
Continental Automotive Corporation, Yokohama, Japan*; Continental Automotive, Inc., Wilmington, Delaware, U.S.A.*; Continental Automotive Interior Wuhu Co., Ltd., Wuhu, China* (Chairman);
Continental Automotive Jinan Co., Ltd., Jinan, China* (Chairman); Continental Automotive Systems Changshu Co., Ltd., Changshu, China* (Chairman);
Continental Automotive Systems Holding US, Inc., Wilmington, Delaware, U.S.A.*;
Continental Automotive Systems, Inc., Wilmington, Delaware, U.S.A.*;
Continental Automotive Systems (Shanghai) Co., Ltd., Shanghai, China* (Chairman);
Continental Automotive Systems (Tianjin) Co., Ltd., Tianjin, China* (Chairman);
Continental Brake Systems (Shanghai) Co., Ltd., Shanghai, China* (Chairman)
Frank Jourdan
Chassis & Safety Division
(Member of the Executive Board since September 25, 2013) Continental Automotive Mexicana S.A. de C.V., Morelos, Mexico*
Helmut Matschi Interior Division
SAS Autosystemtechnik Verwaltungs GmbH, Karlsruhe; SAS Autosystemtechnik GmbH & Co. KG, Karlsruhe (Vice Chairman);
S-Y Systems Technologies Europe GmbH, Regensburg (until January 29, 2013);
Continental Automotive GmbH, Hanover* (Chairman) Wolfgang Schäfer
Finance, Controlling, Compliance, Law and IT Continental Reifen Deutschland GmbH, Hanover*;
Continental Automotive, Inc., Wilmington, Delaware, U.S.A.*; Continental Automotive Systems, Inc., Wilmington, Delaware, U.S.A.*;
Continental Rubber of America, Corp., Wilmington, Delaware, U.S.A.*
Nikolai Setzer Tire Division
Continental Reifen Deutschland GmbH, Hanover* (Chairman); Continental India Limited, New Delhi, India*;
Continental Tire Holding US, LLC, Wilmington, Delaware, U.S.A.*; Continental Tire the Americas LLC, Fort Mill, South Carolina, U.S.A.*;
Continental Tyre South Africa (Pty.) Ltd., Port Elizabeth, South Africa* (until May 29, 2013)
Elke Strathmann
Human Resources, Director of Labor Relations, Corporate Social Responsibility
Heinz-Gerhard Wente ContiTech Division Corporate Purchasing
Benecke-Kaliko AG, Hanover* (Vice Chairman);
ContiTech Antriebssysteme GmbH, Hanover* (Chairman); ContiTech Elastomer Beschichtungen GmbH, Hanover* (Chairman);
ContiTech Luftfedersysteme GmbH, Hanover* (Chairman); ContiTech MGW GmbH, Hann. Münden* (Vice Chairman); ContiTech Schlauch GmbH, Hanover* (Chairman);
ContiTech Techno-Chemie GmbH, Karben* (Vice Chairman); ContiTech Transportbandsysteme GmbH, Hanover* (Chairman); ContiTech Vibration Control GmbH, Hanover* (Chairman); Phoenix Compounding Technology GmbH, Hamburg* (Chairman);
ContiTech Grand Ocean Fluid (Changchun) Co., Ltd., Chang-chun, China*;
ContiTech North America, Inc., Wilmington, Delaware, U.S.A.*; ContiTech Thermopol, LLC, Manchester, New Hampshire, U.S.A.*; ContiTech Oil & Marine Corp., Dallas, Texas, U.S.A.*
* Companies pursuant to Section 100 (2) of the German Stock Corporation Act (Aktiengesetz – AktG).
Further Information Other Directorships – The Supervisory Board Annual Report 2013 Continental AG 242
Memberships of other statutory supervisory boards and of comparable controlling bodies of companies in Ger-many and abroad in accordance with Section 285 No. 10 of the German Commercial Code (Handelsgesetzbuch – HGB): Companies with no country specified are located in Germany. Prof. Dr.-Ing. Wolfgang Reitzle, Chairman
President and CEO of Linde AG Holcim Ltd., Zurich, Switzerland
Hartmut Meine*, Vice Chairman (since August 1, 2013) District manager of IG Metall (Metalworkers’ Union) for Lower Saxony and Saxony-Anhalt
KME Germany GmbH, Osnabrück; Volkswagen AG, Wolfsburg
Werner Bischoff*, Vice Chairman
Trade Union Secretary, IG Bergbau, Chemie, Energie (Mining, Chemical and Energy Industries Union) (Member of the Supervisory Board until May 15, 2013) RWE AG, Essen;
RWE Dea AG, Hamburg; RWE Power AG, Essen Michael Deister*
Chairman of the Works Council for the Stöcken Plant Dr. Gunter Dunkel
Chairman of the Board of Management of Norddeutsche Landesbank Girozentrale
Bremer Landesbank Kreditanstalt Oldenburg Girozentrale, Bremen**;
Deutsche Hypothekenbank AG, Hanover** (Chairman); Norddeutsche Landesbank Luxembourg S.A., Luxembourg** (Chairman);
NORD/LB Covered Finance Bank S.A., Luxembourg** (Chairman) Hans Fischl*
Chairman of the Works Council for the Regensburg Location, Chairman of the Corporate Works Council of Continental AG and Member of the Central Works Council of Continental Automotive GmbH
Dr. Jürgen Geißinger
President and CEO of Schaeffler AG (until October 4, 2013)
(Member of the Supervisory Board until December 1, 2013) MTU Aero Engines Holding AG, Munich;
MTU Aero Engines GmbH, Munich;
Schaeffler Group USA, Inc., Fort Mill, South Carolina, U.S.A.** (until October 4, 2013);
Schaeffler Holding (China) Co. Ltd., Changsa, China** (until October 4, 2013);
Sandvik AG, Stockholm, Sweden
Prof. Dr. Peter Gutzmer
Member of the Executive Board, Research and Development, Schaeffler AG
(Member of the Supervisory Board since December 4, 2013) Peter Hausmann*
Member of the Central Board of Executive Directors, IG Bergbau, Chemie, Energie (Mining, Chemical and Energy Industries Union)
(Member of the Supervisory Board since July 1, 2013) Bayer AG, Leverkusen;
Henkel AG & Co. KGaA, Düsseldorf (since April 15, 2013); 50Hertz Transmission GmbH, Berlin (Vice Chairman); Vivawest GmbH, Gelsenkirchen
Prof. Dr.-Ing. E. h. Hans-Olaf Henkel
Honorary Professor at the University of Mannheim UsedSoft Schweiz AG, Zug, Switzerland
Michael Iglhaut*
Chairman of the Works Council for the Frankfurt Location, Chairman of the Central Works Council of Continental Teves AG & Co. oHG
Jörg Köhlinger*
Trade Union Secretary, IG Metall (Metalworkers’ Union) for the Central Region, and IG Metall Delegate for the Corporate Works Council of Continental Teves, as well as the Supervisory Committee of the Central Works Council of Continental Teves, Temic and Automotive
C.+H. Winter GmbH, Stadtallendorf (since August 22, 2013); Rasselstein GmbH, Andernach
Prof. Dr. Klaus Mangold
Chairman of the Supervisory Board of Rothschild GmbH Alstom Deutschland AG, Mannheim (Chairman);
Metro AG, Düsseldorf (until May 8, 2013); TUI AG, Hanover (Chairman);
Alstom S.A., Paris, France;
Baiterek JSC, Astana, Kazakhstan (since June 25, 2013); Swarco AG, Wattens, Austria (since July 4, 2013) Dirk Nordmann*
Chairman of the Works Council for the Vahrenwald Plant, ContiTech Antriebssysteme GmbH, Hanover
ContiTech Luftfedersysteme GmbH, Hanover Artur Otto*
Head of Marketing & Business Development Automotive Systems & Technology
Klaus Rosenfeld
Chief Executive Officer of Schaeffler AG
Further Information Other Directorships – The Supervisory Board Annual Report 2013 Continental AG 243
Georg F. W. Schaeffler
Co-owner of the Schaeffler Group Schaeffler AG, Herzogenaurach** (Chairman) Maria-Elisabeth Schaeffler
Co-owner of the Schaeffler Group
Nürnberger Lebensversicherung AG, Nuremberg (until December 31, 2013);
Schaeffler AG, Herzogenaurach**;
Österreichische Industrieholding AG, Vienna, Austria Jörg Schönfelder*
Chairman of the Works Council for the Korbach Plant and Chairman of the European Works Council
Continental Reifen Deutschland GmbH, Hanover** Dr. Bernd W. Voss
Member of various Supervisory Boards Wacker Chemie AG, Munich
Erwin Wörle*
Chairman of the Works Council of Conti Temic microelectronic GmbH, Ingolstadt
Conti Temic microelectronic GmbH, Nuremberg** (Vice Chairman)
Prof. KR Ing. Siegfried Wolf
Chairman of the Board of Directors of Russian Machines OJSC
Banque Baring Brothers Sturdza SA, Geneva, Switzerland; GAZ Group, Nizhny Novgorod, Russia (Chairman); Glavstroy Corporation LLC, Moscow, Russia (Chairman); Österreichische Industrieholding AG, Vienna, Austria; Russian Machines OJSC, Moscow, Russia (Chairman); SBERBANK Europe AG, Vienna, Austria (Chairman); Siemens Aktiengesellschaft Austria, Vienna, Austria; STRABAG SE, Vienna, Austria;
VERBUND AG, Vienna, Austria
* Employee representative.
** Companies pursuant to Section 100 (2) of the German Stock Corporation Act (Aktiengesetz – AktG).
Members of the Supervisory Board Committees:
1. Chairman’s Committee and Mediation Committee required under Section 27 (3) of the German Co-determination Act (Mitbestimmungsgesetz)
Prof. Dr.-Ing. Wolfgang Reitzle, Werner Bischoff (until May 15, 2013), Michael Deister (since August 1, 2013), Hans Fischl (until July 31, 2013), Hartmut Meine (since August 1, 2013), Georg F. W. Schaeffler
2. Audit Committee
Dr. Bernd W. Voss (Chairman), Michael Deister (until July 31, 2013), Hans Fischl (since August 1, 2013), Peter Hausmann (since August 1, 2013), Michael Iglhaut,
Hartmut Meine (until July 31, 2013), Klaus Rosenfeld,
Georg F. W. Schaeffler
3. Nomination Committee Prof. Dr.-Ing. Wolfgang Reitzle, Georg F. W. Schaeffler, Maria-Elisabeth Schaeffler, Dr. Bernd W. Voss
Further Information Ten-Year Review – Corporation Annual Report 2013 Continental AG 244 2013 20126 2011 2010 2009 2008 2007 2006 2005 2004 Balance sheets Non-current assets in € millions 15,569.5 15,685.7 15,075.5 14,887.9 14,724.6 16,348.4 17,383.9 5,877.9 5,193.8 4,953.9 Current assets in € millions 11,251.3 11,764.4 10,962.9 9,502.6 8,324.6 8,339.5 10,353.7 4,975.1 5,353.9 4,742.0 Total assets in € millions 26,820.8 27,450.1 26,038.4 24,390.5 23,049.2 24,687.9 27,737.6 10,853.0 10,547.7 9,695.9 Shareholders’ equity (excl.
non-controlling interests) in € millions 9,011.2 7,779.0 7,146.1 5,859.6 3,772.6 5,265.4 6,583.2 4,470.8 3,574.2 2,706.2 Non-controlling interests in € millions 311.0 377.4 397.2 343.3 289.1 264.5 272.9 239.1 220.8 231.0 Total equity (incl. non-controlling
interests) in € millions 9,322.2 8,156.4 7,543.3 6,202.9 4,061.7 5,529.9 6,856.1 4,709.9 3,795.0 2,937.2 Equity ratio1 in % 34.8 29.7 29.0 25.4 17.6 22.4 24.7 43.4 36.0 30.3 Capital expenditure2 in € millions 1,981.1 2,019.4 1,711.3 1,296.4 860.1 1,595.2 896.9 805.0 871.8 703.0 Net indebtedness in € millions 4,289.3 5,319.9 6,772.1 7,317.0 8,895.5 10,483.5 10,856.4 1,181.0 493.2 881.1 Gearing ratio in % 46.0 65.2 89.8 118.0 219.0 189.6 158.3 25.1 13.0 30.0 Income statements Sales in € millions 33,331.0 32,736.2 30,504.9 26,046.9 20,095.7 24,238.7 16,619.4 14,887.0 13,837.2 12,597.4
Share of foreign sales in % 76.2 75.4 73.7 72.8 71.0 68.5 69.2 67.6 65.8 66.8
Cost of sales3 in % 76.6 78.3 79.0 77.8 80.0 80.4 75.8 75.3 74.6 75.0
Research and development
expenses3 in % 5.6 5.3 5.3 5.6 6.7 6.2 5.0 4.5 4.3 4.2 Selling expenses3 in % 5.0 4.8 4.7 5.0 5.6 4.9 5.5 5.7 6.1 6.2 Administrative expenses3 in % 2.1 2.0 2.1 2.5 3.0 3.2 2.7 3.0 3.1 3.1 EBITDA in € millions 5,095.0 4,967.4 4,228.0 3,587.6 1,591.2 2,771.4 2,490.6 2,301.5 2,248.9 1,824.6 EBITDA3 in % 15.3 15.2 13.9 13.8 7.9 11.4 15.0 15.5 16.3 14.5 Personnel expenses in € millions 7,124.5 6,813.7 6,354.3 5,891.7 5,199.8 5,746.3 3,652.7 3,175.2 3,054.3 3,011.7
Depreciation and amortization4
in €
millions 1,831.3 1,781.2 1,631.1 1,652.4 2,631.6 3,067.6 814.8 699.6 741.8 667.2 Net income attributable to the
shareholders of the parent
in €
millions 1,923.1 1,905.2 1,242.2 576.0 –1,649.2 –1,123.5 1,020.6 981.9 929.6 716.2 Dividend and earnings per share
Dividend for the fiscal year
in € millions 500.05 450.0 300.0 — — — 323.4 293.1 145.9 116.3 Number of shares as at December 31 in millions 200.0 200.0 200.0 200.0 169.0 169.0 161.7 146.5 145.9 145.4 Net income (per share) attributable
to the shareholders of the parent in € 9.62 9.53 6.21 2.88 –9.76 –6.84 6.79 6.72 6.38 5.19 Employees
Annual average
in
thou-sands 175.4 169.0 159.7 142.7 133.4 148.4 93.9 81.6 81.1 73.7
1 Including non-controlling interests.
2 Capital expenditure on property, plant and equipment, and software. 3 As a percentage of sales.
4 Excluding impairments on financial investments.
5 Subject to the approval of the Annual Shareholders’ Meeting on April 25, 2014. 6 IAS 19 (revised 2011), Employee Benefits, has been applied since 2012.
Further Information Glossary of Financial Terms Annual Report 2013 Continental AG 245
American Depositary Receipt (ADR). ADRs securitize the ownership of shares and can refer to one, several, or even a portion of a share. ADRs are traded on U.S. stock exchanges in the place of foreign shares or shares that may not be listed on U.S. stock exchanges.
Capital Employed. Capital employed refers to the funds used by the company to generate its sales.
Continental Value Contribution (CVC). The CVC represents the absolute amount of additional value created, and the Delta CVC represents the change in absolute value creation over the prior year. This change in the absolute contribution measured by Delta CVC allows us to monitor the extent to which manage-ment units generate value-creating growth or resources must be employed more efficiently.
The CVC is measured by subtracting the weighted average cost of capital (WACC) from the ROCE and multiplying this by the average operating assets for the fiscal year. The weighted aver-age cost of capital calculated for the Continental Corporation corresponds to the required minimum return. The cost of capi-tal is calculated as the weighted average ratio of the cost of equity and borrowing costs.
Currency swap. Swap of principal payable or receivable in one currency into similar terms in another currency. Often used when issuing loans denominated in a currency other than that of the lender.
Defined Benefit Obligation (DBO). DBO is defined as the present value of all vested and non-vested benefits calculated on the basis of estimated salary levels at retirement. The only actuarial method that may be used to calculate the DBO is the projected unit credit method. DBO corresponds to PBO (pro-jected benefit obligation).
Derivative instruments.Transactions used to manage interest rate and/or currency risks.
Dividend payout ratio. The dividend payout ratio is the ratio between the dividend for the fiscal year and the earnings per share.
EBIT. Earnings Before Interest and Taxes. EBIT represents the results of operations.
EBITDA.Earnings Before Interest, Taxes, Depreciation and Amortization.
Finance lease. Under a finance lease, the lessor transfers the investment risk to the lessee. This means that the lessor bears only the credit risk and any agreed services. The lessee is the beneficial owner of the leased asset. Finance leases are charac-terized by a fixed basic term during which the lease may not be terminated by the lessee.
GDP. Gross domestic product is a measure of the economic performance of a national economy. It specifies the value of all goods and services produced within a country in a year. Gearing ratio.The gearing ratio represents the net indebted-ness divided by total equity, expressed as a percentage. Hedging. Securing a transaction against risks, such as fluctua-tions in exchange rates, by entering into an offsetting hedge transaction, typically in the form of a forward contract.
IAS. International Accounting Standards. Accounting standards of the IASB.
IASB. International Accounting Standards Board. The authority that defines the International Financial Reporting Standards. IFRIC. International Financial Reporting Interpretations Com-mittee (predecessor of the International Financial Reporting Standards Interpretations Committee, IFRS IC).
IFRS. International Financial Reporting Standards. The account-ing standards of the IASB.
IFRS IC. International Financial Reporting Standards Interpreta-tions Committee. The body that determines appropriate ac-counting treatment in the context of existing IFRS and IAS. Interest rate swap. An interest rate swap is the exchange of interest payments between two parties. For example, this allows variable interest to be exchanged for fixed interest, or vice versa. Net indebtedness. The net amount of interest-bearing financial liabilities as recognized in the balance sheet, cash and cash equivalents, the positive fair values of the derivative instru-ments as well as other interest-bearing investinstru-ments.
Operating assets. Operating assets are the assets less liabilities as reported in the balance sheet, without recognizing the net indebtedness, discounted trade bills, deferred tax assets, in-come tax receivable and payable, as well as other financial assets and debts. According to our definition, operating assets correspond to capital employed.
Operating lease. A form of lease that is largely similar to rental. Leased assets are recognized in the lessor’s balance sheet and capitalized.
PPA. Purchase Price Allocation. PPA is the process of breaking down the purchase price and assigning the values to the identi-fied assets, liabilities, and contingent liabilities following a busi-ness combination. Subsequent adjustments to the opening balance sheet – resulting from differences between the prelimi-nary and final fair values at the date of initial consolidation – are recognized as “PPA adjustments”.
Further Information Glossary of Financial Terms Annual Report 2013 Continental AG 246
Rating. Standardized indicator for the international finance markets that assesses and classifies the creditworthiness of a debtor. The classification is the result of an economic analysis of the debtor by specialist rating companies.
ROCE. Return On Capital Employed. We define ROCE as the ratio of EBIT to average operating assets for the fiscal year.
SIC. Standing Interpretations Committee (predecessor to the IFRIC).
Weighted Average Cost of Capital (WACC). The WACC repre-sents the weighted average cost of the required return on equi-ty and net interest-bearing liabilities.
