Continental Automotive India Automotive Logistics Conference India, Chennai November 8,2017

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1 Bitte decken Sie die schraffierte Fläche mit einem Bild ab. Please cover the shaded area with a picture. (24,4 x 11,0 cm) Continental Automotive India Automotive Logistics Conference India, Chennai November 8,

2 Agenda Our Vision Continental Corporation Worldwide Continental India-Overview Continental SCMA Vision & Mission Electronics Manufacturing Market & Supply Chain Challenges faced by Tier I Suppliers Supply Chain Trends Adopting Best Practices in Continental Supply Chain Talent and Competence Management 2

3 Our Vision Your Mobility. Your Freedom. Our Signature. Highly developed, intelligent technologies for mobility, transport and processing make up our world. We want to provide the best solutions for each of our customers in each of our markets. All of our stakeholders will thus come to recognize us as the most value-creating, highly reliable and respected partner. November 14, 2017 Corporate Communications Continental AG 3

4 Continental Corporation 430 Locations in 56 Countries Europe North America Canada Mexico USA South America Argentina Brazil Chile Columbia Ecuador Peru Venezuela Austria Belgium Denmark Finland France Germany* *Headquarters in Hanover Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Czech Republic Hungary Kazakhstan Poland Africa Algeria Botswana Ghana Republic of South Africa Morocco Romania Russia Serbia Slovakia Australia Slovenia Turkey Ukraine Asia China India Indonesia Japan Malaysia Philippines Singapore South Korea Sri Lanka Taiwan Thailand United Arab Emirates Vietnam Status: December 2016 November 14, 2017 Corporate Communications Continental AG 4

5 Continental Corporation Overview 2016 Sales by division in % Since 1871 with headquarters in Hanover, Germany Sales of 40.5 billion 220,137 employees worldwide 430 locations in 56 countries ContiTech 14% Chassis & Safety 22% Tires 26% Powertrain 18% Interior 20% Status: December 31, 2016 Company Presentation Continental Public November 14, 2017 Corporate Communications Continental AG 5

6 We Shape the Megatrends in the Automotive Industry: Safety, Environment, Information, Affordable Cars Doing more. For safe mobility. Doing more. For clean power. Doing more. For intelligent driving. Doing more. For global mobility. November 14, 2017 Corporate Communications Continental AG 6

7 Continental India Present in Automotive Hubs Auto Hub North Hub West Hub South Hub Sonepat Delhi Partapur Manesar Modipuram Kolkata Ahmedabad Continental Automotive Work R & D Conti Tire Sales Office Work ContiTech Work Sales Office Mumbai Pune Bangalore Chennai 7

8 Automotive Group Locally Manufactured Products Chassis & Safety Powertrain Interior BU HBS Drum Brakes BU PSS Wheel Speed Sensor BU PSS Engine Speed Sensor BU ES ECU BU S&A Temp Sensor BU FEM SCR Dosing Systems BU ID Instrument Cluster Car BU CVAM Instrument Cluster CV BU HBS Caliper BU PSS EPS ECU BU VED ABS BU FEM Fuel Pumps BU ES Fuel Rail BU FEM Metallic BU BS Body Controllers BU CVAM Instrument Cluster 2W Substrates BU PSS Transmission Speed Sensor BU HBS Actuation BU PSS Airbag ECU BU S&A Knock Sensor BU FEM Partial Flow Filter BU BS Immobilizers 8

9 SCMA Asia Vision, Mission & Strategy Statements Our image of the future May 2017 Establish the leading autonomous supply network We lead the customer and value oriented autonomous supply network with zero incidents and real-time information everywhere. Value Creation Reducing logistics costs Optimizing inventory and turn rate Reliable supply Reliable delivery to customer Network & Integration Maintaining a global network with all business partners Define standards, support and guide implementations, monitor results Continuous Improvement Enhancing our capabilities by: Observing and adapting external and internal technological developments & best practices SCMA, Continental AG 9

10 Automotive Electronics Market Size & Trends If integrated circuits, optoelectronics, sensors, and discrete devices get included, the automotive electronics market reached around USD 34 billion in 2016 (FIGURE 1). While this represents less than 10% of the total semiconductor market, it is predicted to be one of the fastest growing markets over the next 5 years. sandeepsharma Continental India 10

11 Electronics Systems as % of Total Car Cost Explanations for such growth potential: The vehicle market itself is predicted to steadily grow on an average 3% in the next 10 years and will be especially driven by China and India, although other developed countries will still experience an increase in sales. The semiconductor content in each car is steadily increasing and it is expected that the share of electronic systems in the vehicle cost could reach 50% of the total car cost by 2030 (FIGURE 2). sandeepsharma Continental India 11

12 Electronics Manufacturing & its Supply Chain is different It is characterized by a very large portfolio of products based on mature technologies Discrete, optoelectronics, MEMS and sensors, to integrated circuits and memories Very few Global suppliers worldwide, Specialized Semiconductors Manufacturers High Quality Requirements. Operating conditions of automotive electronics components (temperature, humidity, vibration, acceleration, etc.), their lifetime, and their spare part availability are differentiators to what is common for consumer and industrial devices. Demand for Indian Market for electronics was USD 45 Billion in and expected to reach USD 400 Billion by The domestic production in was USD 20 Billion. At the current rate of growth, domestic production can cater to demand of USD 100 Billion against demand of USD 400 Billion and rest needs to be met by Imports only. Source : The automotive electronics market: A view from a material supplier: By R Jeans,Linde Electronics,Taiwan : Meity website Author, Continental AG 12

13 Challenges faced by Tier I Suppliers Electronics Manufacturing Supply Chain Country s Infrastructure Demand Fluctuations at short notice Full visibility of Supply Chain across Tier II & Tier III Supplier Base Customs Clearances and Documentation sandeepsharma Continental India 13

14 Supply Chain Trends # Block Chain Technology # 3 D Printing Next Generation Digital Supply Chain # Autonomous Vehicles # Internet of Things # Augmented Reality sandeepsharma Continental India 14

15 Adopting Best Practices : Building Lean and Resilient Supply Chain Globally Agile Execution Plan for the Unknown Real Time, Multi tier Visibility Partnership & Collaborative Approach Source :Lean and Resilient,The New Automotive SC Hybrid by Lisa Harrington sandeepsharma Continental India 15

16 Adopting Best Practices : Improving Visibility (TOMS) What is TOMS? Web based System to create and manage transport orders and ASNs Provided by company SupplyOn. Just integrating info between Conti,Suppliers & FF Who will use TOMS? Suppliers for creating transport orders and ASNs. Plants shall use transport orders and other functionalities. Forwarders shall use for processing transport orders. What do we need to install TOMS? Mandatory is Supply On Services with web EDI. Access to Internet and Technical Set Up needed. sandeepsharma Continental India 16

17 Talent & Competency Management as Key Strategy Current studies on future trends in Supply Chain & Logistics show that Talent Management is becoming of strategic relevance in the next five years Source: Trends and Challenges in Automotive Logistics, Hellingrath, B sandeepsharma Continental India 17

18 Competency Management Scope & SCM Academy concept Competency Framework Job profiles Curriculums Competencies Trainings 1 Employee Competency Evaluation 2 Employee Training Plan Training Evaluation 6 Improving Competencies We Need You! 3 Training Schedule Training Requirement Planning 5 Training Application & Experience 4 Training Execution & Learning SCM Academy Training SUPERVISOR EMPLOYEE SCM Academy, Continental AG 18

19 Thank you for your attention! Company Presentation Continental Public November 14, 2017 Corporate Communications Continental AG 19

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