New Strategic Partnership KSA Riyadh November 03rd 2009

New Strategic Partnership KSARiyadh

November 03rd 2009

03.11.2009

BU PLT & Light Truck EuropeMENENA

History of Continental AG

2 © 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.

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3 © 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.

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4 © 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.

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5 © 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.

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6 © Continental AG

2009

Start of Partnership for Continental brand

with Al Mutlak

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7 © Continental AG

Continental Worldwide

Status: January 2009

Nearly 190 sites for production and R&D in 35 countries. Headquarters in Hanover, Germany.

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8 © Continental AG

Our Divisions Shape the Megatrends in the Automotive Industry

Environment InformationSafety

Affordable Cars

Growing demand for individual mobility in future markets.

Chassis & Safety Powertrain Interior Tires ContiTech

Sophisticated information management in the vehicle. Intelligent mobility.

Interior

Conservation of natural resources. Sustained mobility.

Powertrain

Interior

Tires

ContiTech

Increase in safety systems in the vehicle.Safe mobility.

Chassis & Safety

Interior

Tires

ContiTech

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9 © Continental AG

ContiTech Division

Corporate Functions:

Director of Personnel

Human Resources

Heinz-Gerhard Wente

Passenger & Light Truck Tires Division

Nikolai Setzer

Executive Board of Continental

Chassis & Safety Division

Dr. Ralf Cramer

Interior Division

Helmut Matschi

Commercial Vehicle Tires Division

Corporate Functions:

Purchasing

Quality

Environment

Dr. Hans-Joachim Nikolin

Powertrain Division

Dr. Elmar Degenhart

Automotive Group

Rubber Group

Chairman

Corporate Communications

Dr. Elmar Degenhart

Chief Financial Officer Harald Stuhlmann (acting)

Finance

Controlling

Law

IT

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10 © Continental AG

ContiTech

Air Spring Systems

Benecke-Kaliko Group

Conveyor Belt Group

Elastomer Coatings

Fluid Technology

Power Trans-mission Group

Vibration Control

Other Operations

Passenger and Light Truck Tires

OriginalEquipment

ReplacementBusinessEurope

ReplacementBusinessThe Americas

ReplacementBusinessAsia

Two-Wheel

Commercial Vehicle Tires

Truck Tires Europe

Truck TiresReplacement BusinessThe Americas

Truck Tires Asia

Industrial Tires

Chassis & Safety

ElectronicBrake Systems

HydraulicBrake Systems

Sensorics

Passive Safety& ADAS

Chassis Components

Powertrain

Engine Systems

Transmission

Hybrid Electric Vehicle

Sensors & Actuators

Fuel Supply

Interior

Instrumentation & Driver HMI

Infotainment & Connectivity

Body & Security

Commercial Vehicles & Aftermarket

Strong Divisions and Business Units

Continental Corporation

Automotive Group Rubber Group

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Continental Corporation

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 taxes2 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

2008 2007

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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

Sales 1,404.2 1,452.4

EBIT 29.5 124.1



ContiTech

Sales 3,007.0 3,063.9

EBIT 329.1 362.8



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

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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

Total 41.200.000 77.600.000 35% / 65 % 117.800.000

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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

Overall market

Original equipment sector

Winter tires

Tuning

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Europe

Czech RepublicFinlandFranceGermanyPortugalRomaniaRussia Slovakia

Passenger and Light Truck Tires Division– 23 Sites in 13 Countries

South America

Brazil

North America

MexicoUSA

Asia

Malaysia

Africa

South Africa

Status: January 1, 2009 Sarreguemines, France

Otrokovice, Czech Republic

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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

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Europe

Czech RepublicGermanySlovakia

Commercial Vehicle Tires Division – 12 Sites in 7 Countries

South America

Brazil

North America

USA

Asia

Malaysia

Africa

South Africa

Status: January 1, 2009 Mount Vernon, Illinois, USA

Camaçari, Brazil

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Future Vision for Menena Area


Mauretania

Morocco

Algeria

Tunisia

Libya

Egypt

Israel

Syria

Jordan

Lebanon

Saudi Arabia

Iran

Iraq

Afghanistan

Yemen

Oman

UAE

Kuwait

Qatar

Bahrain

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Future Vision for Menena Area: Strategy


1. To build up together with our partners a strong leading position in this strategic part of the world.

2. To develop a long term profitable business growth for our partners and for Continental

3. To create strong brand awareness and gain customer loyalty together by anticipating the market development

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Future Vision for Menena Area: Organization


Mauretania

Morocco

Algeria

Tunisia

LibyaEgypt

Israel

Syria

Jordan

Lebanon

Saudi Arabia

IranIraq

Afghanistan

Yemen

Oman

UAE

Kuwait

QatarBahrain

Region: Middle East, Near East, North Africa

Dubai Representative Office Middle EastCasablanca Representative Office North AfricaAlgeria Representative Office AlgeriaLibya Representative Office Libya

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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

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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

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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”

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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

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Continental in the Middle East


IranAfghanistan

Saudi

Iraq

Yemen

Oman

Saudi Arabia

Qatar

Kuwait

UAE

Bahrain

Market Population in MioSaudi 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

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Continental in the Middle East: New set up with a Rep Office


IranAfghanistan

Saudi

Iraq

Yemen

Oman

Saudi Arabia

Qatar

Kuwait

UAE

Bahrain

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

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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)


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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

Why Al Mutlak? Because of……………

Saudi Arabia: Almutlak our partner for Continental Brand

KSA

03.11.2009


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

Documents

New Strategic Partnership KSA Riyadh November 03rd 2009