Continental : On the Move.

For a long time it was just an idea.

Then it was a plan.

Now it's a reality: autonomous trucks.

And Continental is making it happen.

From 2027 in the USA.

With our partner Aurora.

Together, we've defined the design and finalized the architecture of the system. In less than a year.

We couldn't have done it without the hard work of our employees and our more than 55 years of expertise in driverless vehicles.

In 1968, the first electronically controlled test vehicle took to our test track at the Contidrom.

And we still carry out automated and autonomous testing there today. For driving as well as braking.

Because this allows us to simulate all manner of environmental conditions and get precise results.

This experience is something we can bring to our partnership.

For the world's first commercially scalable autonomous trucking system.

Today, the trucks are already traveling on major highways.

Not just on test tracks.

They still have a driver at the wheel, just as a precaution.

For now.

But before long, the trucks will be completely autonomous.

This will reduce costs for carriers and fleet operators.

It will alleviate the skills shortage.

And it will also relieve the impact on the environment.

Because autonomous trucks maximize fuel efficiency.

As you can see:

We're on the move.

And we're moving the world of mobility forward.

Dear shareholders,

Hello and welcome to Hanover!

Welcome to Continental! This time, face to face!

I'm delighted to greet you here today - the first time I've been able to do so in person. And to tell you more about our exciting project in the USA.

For this, we're contributing what we do best: multiple components, which we then combine into a smart system.

Sensors, for example. Radar and lidar systems. And cameras.

But also the entire safety system.

Because it's our software that takes control if the autonomous driving system fails.

At the same time, we're paving the way for an attractive business model in this area.

Our customers will no longer pay for individual components.

But rather for each kilometer driven.

In short, the new way of driving on the roads will change how we create value in the future.

And that's just one of many examples.

We're "on the move" at Continental in lots of other ways as well. And forging new paths in the process.

In strategy.

In implementation.

And in the responsibility we're taking.

I'd like to talk to you today about all three areas.

Let's start with strategy.

Here, our tagline is:

"Independent when necessary - united where purposeful."

By this we mean the interplay between the three group sectors

• Automotive, Tires and ContiTech - and our group functions.

The shared goal is to create value - as the mobility and material technology group for safe, smart and sustainable solutions.

Our past accomplishments give us a great foundation to build on. We've become more robust.

In an environment full of challenges.

We've repositioned ourselves.

Now marks the start of our implementation phase.

With a clear focus on creating value.

Using our technologies and solutions.

With a proactive portfolio that we continually align with future developments.

And by further optimizing our costs.

In Automotive, for example, that means focusing on business areas that deliver high growth and value creation.

Areas where we can achieve a leading market position.

We're improving our processes and structures.

And continually reducing our costs.

Since May 2023, my Executive Board colleague Philipp von Hirschheydt has been driving forward this transformation together with the Automotive team.

For example, we're making the User Experience business area with its large share of hardware products organizationally independent.

This is in line with our strategy.

Because for us what counts is system expertise.

In other words, understanding how our innovative components and smart software can be combined in the best possible way.

For us, it's not about hardware or software.

It's about hardware plus software.

And almost no other supplier can offer a broader portfolio here than us. One spanning a wide range of technologies.

We'll also be examining further portfolio measures in the Automotive group sector.

For business activities that contributed around €1.4 billion to sales in 2023.

And reducing our administrative costs.

By €400 million from 2025.

We'll be lowering our net expenses on research and development in Automotive to around 9 percent of sales by no later than 2028.

Our Tires group sector continues to generate solid earnings. It's a role model for operational excellence and a trailblazer for leading-edge products.

This is proven by countless international tests. For our winter tires.

Our summer tires.

And our all-season tires.

120 years ago, we were the first in the world to produce treaded tires. Today, we continue to set new standards in the industry with models such as the PremiumContact 7.

Our tires offer everything customers want.

Safety. Comfort. And sustainability.

All at the same time.

And at the highest level.

That's why we're continuing on this path.

Sustainability is especially important in connection with electric mobility, for example.

And paves the way for us to achieve further profitable growth. In 2023, the world's 10 highest-volume manufacturers of electric vehicles trust and use Continental tires.

We've already received a total of more than 500 original equipment approvals for fully electric models from automotive manufacturers worldwide.

Then there are digital tire services.

Here, too, we can and will continue to grow.

We already have the cornerstones in place.

Because more than 80 percent of our global capacity for tire manufacturing is today already consolidated in so-called megafactories. This is how we leverage synergies. And make production more efficient.

Reliability and value creation are things we can also guarantee in ContiTech, our group sector for material solutions made from rubber and plastics.

Going forward, we'll be sharpening our focus on the industrial business. Our ambition is to increase its share of ContiTech's sales from currently around 50 to 80 percent.

Here too, we're exploring new strategic options for certain parts of the business within the group sector.

By 2025, for example, we plan to carve out the Original Equipment Solutions business area, which makes up a large part of ContiTech's business with automotive manufacturers.

Either under our roof, with a strategic investor, as part of a joint venture or through a sale.

All options are on the table.

Diversity and independence.

Specialization and cooperation.

Transformation and innovation.

Ladies and gentlemen,

These are all intrinsic to our day-to-day business.

And are driving forces in the current implementation phase of our strategy.

One of the most recent examples is our new TechCenter in Hamburg, where since summer 2023 we've been coordinating our global activities on a crucial topic for the future - hydrogen.

Hydrogen is becoming increasingly important in industry, and ContiTech supplies a wide range of infrastructure solutions for this. Like hoses, lines and seals.

Valves, vessels and transport aids.

And they must all meet completely new requirements in terms of pressure and temperature.

With our TechCenter, we're creating a platform to develop solutions so we can bring innovations to market even faster.

Just like we're doing with the transfer of existing solutions to new applications.

Ladies and gentlemen,

In many areas, we're not waiting for future growth but seizing the opportunity to create value now.

By focusing on trends with value creation upside.

Take our radars, for example.

Almost all car manufacturers have been using these for many years. In 2023, we received an order worth hundreds of millions for our latest product.

Recently, we received another worth more than €1.5 billion.

Then there are our ultra-high-performance tires, which meet a range of growing requirements.

And which we're using to set ourselves apart.

This gives us a competitive edge and makes tires a very profitable business.

The same goes for ContiTech, with its focus on the industrial business.

That's also what we mean when we say:

Transformation and innovation create new opportunities.

Provided we have the courage to forge new paths.

And do so responsibly.

Like at our location in Gifhorn.

Last year we decided that we need to cease production here by 2027.

At the same time, however, we're creating new opportunities.

Together with Stiebel Eltron, for example.

In the future, the company will manufacture stainless steel tanks at the location for use in heat pumps.

This is a growth business that offers new prospects both for employees and for Stiebel Eltron.

Other companies are also showing an interest.

And we're preparing our employees for these opportunities in order to transfer as many as possible from work to work.

As you can see, we're taking responsibility and creating opportunities. By forging these new paths, we're actively shaping the transformation.

Even if conditions are difficult and will likely remain so.

Geopolitical tensions.

The war of aggression in Ukraine.

The violence in the Middle East.

Inflation.

These are all major challenges.

Yet despite all this, we've continued to improve.

By becoming more robust and following a clear plan.