Continental matador rubber s r o the new number one in europe november 8 th 2007 puchov slovakia
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-. Continental Matador Rubber s.r.o.: The new Number one in Europe November 8 th , 2007 - Puchov, Slovakia. Continental Matador Rubber s.r.o Agenda. 1. Targets of Joint Venture. 2. Strategy. 3. Growth Paths. 4. Benefits of Joint Venture.

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Continental Matador Rubber s.r.o Agenda

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Continental matador rubber s r o the new number one in europe november 8 th 2007 puchov slovakia

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Continental Matador Rubber s.r.o.:The new Number one in EuropeNovember 8th, 2007 - Puchov, Slovakia


Continental matador rubber s r o agenda

Continental Matador Rubber s.r.oAgenda

1

Targets of Joint Venture

2

Strategy

3

Growth Paths

4

Benefits of Joint Venture


Continental ag plt division continental is now market leader in europe

Continental AG – PLT DivisionContinental is now Market Leader in Europe

  • Market share in Original Equipment & Replacement Business 2006(cumulated and based on number of pieces)

Others


Continental ag plt division european production capacity exceeded 83 million in 2006

Puchov

Continental AG – PLT Division European production capacity exceeded 83 million in 2006


Continental matador rubber s r o clear targets for this joint venture

Continental Matador Rubber s.r.o Clear targets for this Joint Venture

  • Become market leader for PLT tires in Europe

  • Improve position in growth markets in Central & Eastern Europe:Get better access to growth markets in Poland, Ukraine, Czech Republic, Slovakia, as well as the Stan-States and Hungary and to a plant in Russia.

  • Further increase low cost manufacturing position:Additional low cost plant (beside existing plants in CZ, ROM and P).

  • Start another success story with strategic partner Matador: Truck tire joint venture (Continental: 76 %, Matador: 24 %) is very successful since 1998 and has proven the overall approach already. Benefits also for machinery and conveyor belt business.


Continental matador rubber s r o agenda1

Continental Matador Rubber s.r.oAgenda

1

Targets of Joint Venture

2

Strategy

3

Growth Paths

4

Benefits of Joint Venture


Continental matador rubber s r o establish new major plt hub in eastern europe

Continental Matador Rubber s.r.oEstablish new major PLT hub in Eastern Europe

  • Organisational Structure & Human Resources in place: New company structure is implemented - Management team has been selected – Number of employees will increase significantly.

  • Invest into additional Manufacturing Capacity: Establish Continental standards and increase existing production volume to more than 7 million PLT tires p.a. in 2009. Medium-/long-term potential up to 16 million PLT tires p.a..

  • Built Research & Developement Service Center at Puchov:Integrate Matador`s R&D capacities into worldwide R&D structure of Continental. Transfer product development responsibility for selected segments to Puchov. Install R&D and testing service center at Puchov as second R&D center in addition to Hanover.


Continental matador rubber s r o improve position in eastern europe

Continental Matador Rubber s.r.oImprove position in Eastern Europe

  • Increase brand awareness and open up additional Sales potentials: Matador brand management will stay responsible for operation in Puchov. Focus on growth opportunities in Central & Eastern European markets.

  • Further improve Original Equipment Position: Strenghten OE business position for premium brand Continental - especially in Russia.

  • Builtanother Logistics foothold for Eastern Europe:Create additional warehouse capacity and Distrubution Center at Puchov.

  • Standardize Systems and Processes in Finance & Controlling & IT:Implement Continental`s structures and systems to increase efficiency.


Machinery and conveyor belt business strengthen machinery and conveyor belt business

Machinery and Conveyor Belt BusinessStrengthen Machinery and Conveyor Belt Business

  • Strenghten position inMachinery Business (FMF): Integrate Matador`s know-how and capacity to cover increase in worldwide demand. Improve low cost position.

  • Multi Brand Approach forConveyor Belts Business (ContiTech):Integrate Matador‘s production capacities into ContiTech Business Unit Conveyor Belts and strengthen multi brand approach (Continental, Phoenix, Matador).

    Gain better access to eastern european markets.


Continental matador rubber s r o agenda2

Continental Matador Rubber s.r.oAgenda

1

Targets of Joint Venture

2

Strategy

3

Growth Paths

4

Benefits of Joint Venture


Continental matador rubber s r o significant increase of production capacity in puchov

Continental Matador Rubber s.r.o.Significant increase of production capacity in Puchov

  • Annualproduction capacity at Puchov will at least be increased to more than 7 million PLT tires p.a. by 2009. Puchov has the growth potential* to 16 million PLT tires p.a.

  • The short-term investment volume will at least exceed 25 million euros.

  • Pending on the business development of the region and possible support by the Slovakian government growth to 16 million PLT tires p.a. and an investment volume of more than 160 million euros are possible.

PLT tires p.a.

in million


Continental matador rubber s r o agenda3

Continental Matador Rubber s.r.oAgenda

1

Targets of Joint Venture

2

Strategy

3

Growth Paths

4

Benefits of Joint Venture


Benefits of this joint venture win win situation for all parties

Benefits of this Joint VentureWin-Win Situation for all Parties

  • Matador`s PLT business will make Continental the No 1 PLT tire supplier in Europe.

  • Significant investments in Puchov will create new growth opprtunities.

  • Market access for Continental`s brand portfolio in Eastern Europe will be ímproved.

  • The tire brand Matador will profit from the technology of Continental.

  • New engineering jobs will be created in Puchov, existing ones in Hanover will be secured.

  • Efficiency and profitability of both companies will be increased and additional value will be created for the shareholder of Continental Matador Rubber s.r.o. and Continental AG.


Continental matador rubber s r o

Continental Matador Rubber s.r.o

We are all looking forward to a

successful strategic partnership

and to become the clear

No 1 in Europe!


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