Divisions and Business Units

In six divisions and 30 business units, we work to make individual mobility safer, more comfortable and more sustainable.

DIVISIONS

• Chassis & Safety Division
• Powertrain Division
• Interior Division
• Passenger and Light Truck Tires Division
• Commercial Vehicle Tires Division
• ContiTech Division

Chassis & Safety Division

With extensive expertise in driving safety, the Chassis & Safety division integrates components and systems in the areas of hydraulic and electric brakes, driver assistance, passive safety, sensors and chassis dynamics. A vehicle that acts and reacts in a networked way reduces the strain on the driver, helping him or her to cope with complex or critical traffic situations. Chassis & Safety develops and produces intelligent systems for an automotive future in which life is protected and injuries avoided. The division integrates the entire spectrum of active and passive safety systems. Active safety systems, like electronic braking and driver assistance systems, warn of imminent dangers and intervene to assist with steering, braking and suspension control. Passive safety systems, such as airbags and pedestrian protection, provide the best possible protection in the event of an accident. Our product portfolio includes electronic and hydraulic brake and stability control systems, driver assistance systems, airbag electronics, and electronic air suspension systems and sensors. We are convinced that, thanks to innovative technologies, accident-free driving will be possible in the future – for all vehicle categories and in all markets of this world.

Chassis & Safety has 57 manufacturing sites in 19 countries. The 30,495 employees generated sales of €5.8 billion in 2010. The division is divided into five business units:

• Electronic Brake Systems
• Hydraulic Brake Systems
• Sensorics
• Passive Safety & Advanced Driver Assistance Systems (PSAD)
• Chassis Components

The Electronic Brake Systems business unit provides highly advanced braking technology for all vehicle types. It can be used in vehicles ranging from small cars right through to transportation vehicles. Our electronic brake systems feature a high capacity for integrating functions and system components. EBS incorporates ABS (anti-lock braking system) and ESC (electronic stability control) systems with a wide range of added function and integration possibilities.

As one of the world's leading suppliers of foundation brakes and brake actuation systems, the Hydraulic Brake Systems business unit is continuously developing innovations for traditional brake technology and optimized actuation systems for all vehicle categories. Its products range from disc brakes, hand brakes, drum brakes and parking brakes through actuation units to brake hoses and brake fluids.

Sensors are of fundamental importance to the functions of electronic vehicle control. The fast and precise detection of rotational speeds, deflections, movements and forces which affect the vehicle is the Sensorics unit's core competence. This unit develops and manufactures the technologies for implementing the transducers as well as the necessary hardware and software for its own sensors itself. This is done in an integrated network comprising the electronic control units for ABS, TCS (traction control system) and ESC. Our sensors also support engine management and transmission control units, chassis control systems and steering systems.

Driver assistance systems and passive safety electronics help save lives and form the focus of the Passive Safety & Advanced Driver Assistance Systems (PSAD) business unit. Driver assistance systems such as the emergency brake assist and blind spot detection help the driver to drive safely and in a controlled manner at all times. Assistance systems act discreetly in the background, as an individual function or as part of a network: with environment sensors such as cameras, infrared or radar they ensure maximum safety by looking ahead. In turn, airbag technologies and pedestrian protection help provide optimum protection in the event of an accident.

Chassis & Safety Division: Sales by regions (at December 31, 2010)

The Chassis Components business unit specializes in integrated systems in chassis management, active safety and driving efficiency. It develops and produces solutions for electronic-based active chassis technology which assists the driver in keeping the vehicle under control in all driving situations. Electric steering generates significant fuel savings for all vehicle categories. The intelligent gas pedal AFFP® makes CO2 reduction tangible for the driver. The innovative windshield washing systems optimize the consumption of resources and ensure safe visibility.

Market positions
The division is the world leader in electronic and hydraulic brake systems, driver assistance systems, air suspension systems, wheel speed and chassis sensors and airbag electronics, among further products. We are number two for drum brakes and brake hoses.

Opportunities for future growth
Thanks to convincing new products (driver assistance systems, steering, electric parking brake), higher installation rates (for ABS and ESC, sensors, passive safety) and greater market penetration, Chassis & Safety is optimally positioned for the future. The growth market Asia and the international legislation with regard to ABS, ESC, airbags and driver assistance systems will be particularly crucial here. We see good opportunities in all markets and regions for profitable and sustainable growth with functions of our ContiGuard® safety system. Under the motto "safety for all", we will provide scalable technologies for all vehicle categories and all markets, thus offering a highly extensive portfolio in industrialized and growth markets. We are supporting the current topics of environmental protection and electromobility by reducing the weight of components, by offering brake energy recovery, and with the development of our intelligent gas pedal, among other things.

top

Powertrain Division

The Powertrain division integrates innovative and efficient powertrain system solutions into vehicles of all categories. The goal is to not only make driving more affordable and environmentally sound, but to increase driving comfort and pleasure as well. With our comprehensive portfolio of gasoline and diesel systems including sensors, actuators and tailor-made electronics through fuel supply systems, engine management and transmission control units down to design solutions for hybrid and electric drives, we offer our customers a full range of systems and components.

The Powertrain division has 60 production sites in 22 countries. In the year under review, its 26,614 employees generated sales of €4.7 billion. The division is divided into five business units:

• Engine Systems
• Transmission
• Hybrid Electric Vehicle
• Sensors & Actuators
• Fuel Supply

The Engine Systems business unit develops and manufactures engine management systems for a clean environment. The product portfolio includes system and component solutions for gasoline and diesel engines, control units for engine management in commercial vehicles, as well as turbocharger and exhaust gas aftertreatment technologies. Extensive expertise with regard to software and system integration, calibration and simulation complete the offering.

As a specialist in electronic control units for automatic transmissions, the Transmission business unit provides solutions for all types of transmission and allwheel applications. Modern transmission electronics optimize driving comfort, save fuel and reduce vehicles' pollutant emissions. The range also includes high-end systems and cost-effective solutions for growth markets. The product portfolio extends from external control devices through to mechatronics integrated into the transmission, including sensors and electric or hydraulic actuators.

With the potential to save fuel and cut emissions by 25% and more, plus a significant increase in torque, the hybrid drive and the all-electric drive are major alternatives to the pure combustion engine. The Hybrid Electric Vehicle unit was the first European supplier to start production of hybrid systems in 2003 and offers a modular system which covers all key components for future drive types. These modules can be adapted to specific vehicle requirements worldwide – from compact vehicles through SUVs to trucks.

The primary goal of the Sensors & Actuators business unit is to reduce the CO2 emissions of vehicles of all categories. Intelligent sensors and actuators combined with engine management systems allow for dynamic diesel and gasoline engines that not only fulfill current emission standards but are optimally prepared for future regulations for many years to come. Our product portfolio covers all key requirements in the powertrain area – from turbochargers to exhaust gas aftertreatment – and comprises both solutions for combustion engines and transmission and also for hybrid and electric vehicles.

All technologies relevant to fuel management are developed and produced by the Fuel Supply unit. Its range of products includes fuel delivery units, fuel-level sensors, fuel pumps, valves, and integrated electronics. Due to their modular structure, the components can be adjusted flexibly to individual customer requirements and also allow for fast, inexpensive development of customized systems with maximum functionality. With new pioneering technologies such as on-demand fuel supply, we make an active contribution to CO2 reduction.

Market positions
The Powertrain division is the world market leader in fuel supply systems, engine actuators, control units for automatic transmission, four-wheel and all-wheel applications as well as nitrogen oxide, flex fuel and knock sensors, among other areas. We are number two worldwide for gasoline and diesel injection systems.

Powertrain Division: Sales by regions (as of December 31, 2010)

Opportunities for future growth
Stricter legislation on emissions – for example, the goal of cutting CO2 emissions on a sustained basis – and the limited supply of oil, as well as the demand for economical vehicles, require fast and effective action. It is indisputable that a mix of drive solutions will be necessary for this. The Powertrain division therefore aims to push forward increases in the efficiency of conventional combustion engines effectively in the short term, and the advancing electrification of the powertrain in the medium and long term.

We see particular opportunities for growth as a result of our system expertise and our approach, which involves modular solution elements for current and future powertrain configurations. These solutions can be selected and combined based on the vehicle category and the respective requirements profile. Examples include combining gasoline direct injection with exhaust gas turbocharging for high-efficiency gasoline engines in order to further reduce fuel consumption, or combining diesel engine technology with precise and rapid piezo technology in order to further reduce emissions, as well as innovative technologies for hybrid through to all-electric vehicles.

Further advances in exhaust gas aftertreatment and an open system architecture in powertrain management for integrating the growing number of functions in the vehicle will also increasingly gain in importance.

top

Interior Division

The Interior division combines all activities relating to the presentation and management of information in the vehicle. Filtering, prioritizing and visualizing information in an intuitively comprehensible way are essential to get the most out of that information. Here the division focuses in particular on optimizing the human-machine interfaces. Starting with people and their needs, we develop solutions for networking the vehicle with its driver and passengers with mobile devices, other vehicles, and the outside world. With our vision, expressed in the motto "Always On", we view the networked vehicle of the future as a partner that supports the driver and passengers.

Interior has production facilities at 60 locations in 23 countries. With 29,614 employees, the division achieved sales of €5.5 billion in fiscal 2010, and comprises four business units:

• Instrumentation & Driver HMI
• Infotainment & Connectivity
• Body & Security
• Commercial Vehicles & Aftermarket

The objective of the Instrumentation & Driver HMI business unit is to keep drivers optimally informed in all driving situations with reliable, easy-to-read and multifunctional display instruments. One focus here is on prioritizing information, which is shown on different displays depending on the vehicle equipment and driving situation. The unit also develops display systems for the front passenger and rear-seat passengers. Another focal area is the production of elements and control units for the intuitive operation of various functions, for example for air conditioning, as well as integrated systems and complete cockpit modules.

The Infotainment & Connectivity business unit works on connecting vehicles with the outside world and integrating mobile devices into the vehicle. It develops and produces infotainment systems for all vehicle categories. Products range from hands-free systems and telematics units through simple radios to multimedia systems with Internet access and touch-screen operation. In addition, the convenient connection of mobile devices and networking with the outside world are enabled. This results in solutions which encourage a safe and economical way of driving, so that the motorist can concentrate fully on driving.

The Body & Security business unit develops and produces electronic systems for vehicle access, for rendering key-interlock systems reliable, and for ensuring that safety and comfort functions are available. The unit's range of products includes the necessary components for immobilizers, alarm systems and traditional radio-controlled locking systems, as well as modern keyless entry systems where the driver only needs to touch the door handle to unlock the door automatically and enable the ignition. The seat systems provide comfort and the battery and energy management systems maintain a vehicle's roadworthiness while also helping to reduce fuel consumption. One very topical feature is the tire pressure monitoring systems.

The Commercial Vehicles & Aftermarket business unit bundles together diverse activities in the commercial and special vehicles area as well as other activities in the aftermarket business. The global network of sales and service companies ensures proximity to the customer worldwide. This area includes products such as the digital tachograph, guidance and control systems for drive electronics and onboard electronics, as well as onboard units for toll charges. There is an extensive range of products for specialist and unaffiliated repair shops and independent parts dealerships, with VDO, ATE, Continental and Barum brand products. Furthermore, we also ensure that parts are available for the aftermarket once volume production of the vehicle is discontinued.

Market positions
For passenger cars, the division is number one worldwide for instrumentation, telematics systems, access systems and other areas, and number two for secondary displays and tire pressure monitoring systems. For commercial vehicles, we are the global market leader for tachographs, instrumentation and satellite-supported onboard units for toll charges.

Interior Division: Sales by regions (as of December 31, 2010)

Opportunities for future growth
Thanks to our possibilities for adapting the existing product portfolio to all vehicle categories, we expect future growth in the affordable vehicles segment, particularly in Asia.

New legislation in Europe, the U.S.A. and Brazil opens up further growth potential in the area of telematics, for example with electronic emergency call systems, traffic management technologies and intelligent theft protection systems which allow stolen vehicles to be tracked using satellite technology. In addition, customer requirements for telematics systems used in commercial vehicles and electric cars are increasing. Overall, we stand to profit from the trend towards integration of the Internet and other infotainment functions.

The field of tire pressure monitoring systems will benefit from new regulations regarding the installation of these systems in new vehicles in the European Union, Japan and Korea.

We also expect strong growth in displays for the automotive industry. Our research and development staff work continuously on solutions that reduce the burden on the driver and contribute to greater comfort when driving. These include, for example, freely programmable instrument clusters, integrated adaptive operating concepts, head-up displays and 3D displays.

top

Passenger and Light Truck Tires Division

Car safety starts with the car's tires. The demands placed on them are enormous since one meter of braking distance can make a crucial difference. After all, the car's full braking force is transmitted to the road solely via four postcard-size contact patches. Continental passenger and light truck tires provide superb vehicle-road contact in all types of weather. Requirements for our tires may vary, but one thing always holds true: nothing is more important to us and our customers than safety. By constantly decreasing rolling resistance, a steady reduction in CO2 is achieved. 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 SUVs, vans, light trucks and RVs. This division produces tires under the brand names of Continental, Uniroyal (except in NAFTA, Columbia and Peru), Semperit, Barum, General Tire, Viking, Gislaved, Mabor, Matador, Euzkadi, and Sime Tyres.

The Passenger and Light Truck Tires division also includes two-wheel (motorcycle and bicycle) business and retail tire companies with more than 2,200 specialty tire outlets and franchises in twelve countries.

The division has production facilities at 27 locations in 16 countries and a workforce of 28,276. It generated sales of €5.8 billion in 2010. Passenger and Light Truck Tires comprises five business units:

• Original Equipment
• Replacement Business, EMEA
• Replacement Business, The Americas
• Replacement Business, Asia Pacific
• Two-Wheel Tires

The Original Equipment business unit represents global business with the automotive industry. In close consultation with automotive manufacturers, we carefully plan all tire details for every new car to be marketed. Thanks to the innovative ideas of the research and development department and its decades of experience, every Continental tire combines safety with individual requirements, for example minimized rolling resistance and maximized driving comfort. Continental brand products are marketed worldwide and General Tire brand products in NAFTA. The Original Equipment unit also includes systems for extended mobility, such as the self-supporting runflat technology (SSR), which means tires have a reinforced sidewall to support them in the event of a puncture and allows continued driving at reduced speed; ContiSeal technology, a viscoelastic material that seals tires from the inside if the tread is damaged; and the ContiComfortKit, a kit consisting of a compressor and sealant for conveniently sealing tire punctures.

Replacement Business is divided into the business units of EMEA (Europe, Middle East, Africa), The Americas (Canada, North, Central and South America) and Asia Pacific (Asia and the Pacific region). In addition to the premium Continental brand and budget Barum brand, which are sold all over the world, it sells the following regional brands: Uniroyal, Semperit, General Tire, Viking, Gislaved, Mabor, Matador, Euzkadi, and Sime Tyres.

The product portfolio of Two-Wheel Tires ranges from bicycle tires (city, trekking, mountain bike and high-performance racing tires) as well as motorcycle tires (scooter, Enduro and high-performance road tires, some of which are approved for speeds up to 300 km/h). The tires are sold as original equipment and as replacement tires. Continental offers products for professional riders and hobby riders alike.

Market positions
Continental is the number four company worldwide for passenger and light truck tires. We are the market leader in Europe. This applies both to the original equipment sector, where nearly every third vehicle in Europe rolls off the line on our tires, as well as to winter tires and custom wheels. For the very first time, more than 20 million winter tires were sold worldwide in 2010.

Distribution of sales
25% of sales in the Passenger and Light Truck Tires division relates to business with vehicle manufacturers, and 75% relates to the replacement business.

Passenger and Light Truck Tires Division: Sales by regions (as of December 31, 2010)

Opportunities for future growth
In the next few years, we also intend to grow with new products, especially in the attractive ultra-high performance segment, based on leading technologies. With this in mind, our engineers developed the ContiSportContact™ 5P super sports tire and the ContiForceContact (a racing tire approved for the road) in the year under review, and both have received extremely positive assessments from vehicle manufacturers and test magazines. The new ContiSportContact™ 5 follows in spring 2011 with its official world premiere. Further new products with special regional designs are in development for North and South America and Asia.

In the next few years, expanding capacity in the BRIC countries (Brazil, Russia, India, China) will play a key role in tapping additional growth opportunities. Our sponsorship of the FIFA World Cup 2014™ in Brazil helps to steadily increase the awareness of our premium Continental tire brand worldwide.

After the negative market forecasts for the EMEA region (Europe, Middle East, Africa) at the beginning of 2010, we experienced a surprisingly positive shift in the market and our sales figures there last year significantly exceeded our planned figures. Our facilities put in an outstanding performance in the year under review, which also allowed us to achieve a substantial year-on-year improvement in sales for this region.

Global sales of winter tires exceeded the record figure of 20 million passenger and light truck tires, with the highest growth being attributable to the EMEA region, and clearly showing that EMEA is the most important sales region by far. We gradually expanded our sales activities in the Middle East, Near East, North Africa region. We expect that tapping this populous region will provide additional boosts to the summer tire business in the EMEA region in the coming years.

We again expanded faster than the market in The Americas region in the year under review. We thus further improved our market positions in the original equipment business, which is picking up again, as well as in the replacement business. The excellent performance characteristics of our products were confirmed in the U.S. by several independent test organizations, which gave them their highest recommendations. The high growth rate in South America persisted in 2010 and is expected to continue. Our tire plant in Camaçari, Brazil, produced at its capacity limit with an output of about 4.6 million passenger and light truck tires in 2010.

Tire sales in Asia developed more positively than anticipated in the year under review. Our new plant for passenger and light truck tires in Hefei, China, with an expected annual capacity of four million tires will play a major role in implementing our expansion plans.

top

Commercial Vehicle Tires Division

Continental's commercial vehicle tires and services are used in sectors involving the transportation of goods and people, construction site work, and the handling of materials. They represent long tire life, reliable transmission of forces and low fuel consumption, therefore providing economical mobility. The division produces truck, bus and industrial tires for various applications and service conditions. Continental premium brand tires are marketed worldwide. The Barum, Semperit, Uniroyal, and Matador brands are available in Europe as well. In America, the range is supplemented by the General Tire and Ameri*Steel brands, and in Mexico the Euzkadi brand. In Asia, Sime Tyres brand tires complete the product portfolio. The Industrial Tires unit develops and produces tires of the Continental, Barum, Simex, General Tire, Ameri*Steel and Novum brands.

Commercial vehicle tires are manufactured at 15 locations in ten countries. In the year under review, 7,156 employees generated sales totaling €1.4 billion. The division comprises four business units:

• Truck Tires, EMEA
• Truck Tires, The Americas
• Truck Tires, Asia Pacific
• Industrial Tires

Continental truck tires are divided into the "Goods", "People" and "Construction" segments depending on how they are used. The truck tire business is split into three regions: EMEA (Europe, Middle East, Africa), The Americas (Canada, North, Central and South America) and Asia Pacific (Asia and the Pacific region). The original equipment business is organized on a global basis, with near-site operations close to the customer in the regional business units. We focus on customized tire concepts in all regions. Accordingly, we have the "right" tire for every purpose, one that is optimally attuned to the specific application conditions and thus enhances the safety, economy, and comfort of the vehicles.

Our customers benefit many times over from using Continental tires. Firstly, the tires demonstrate a high mileage performance and help to substantially improve fuel economy thanks to their low rolling resistance. Secondly, they can be retreaded as part of the ContiLifeCycle concept. Thirdly, our tire range is not limited to just the product itself, but takes account of the entire utilization process with the customers and includes corresponding services for professional tire management.

ContiLifeCycle maximizes the life of the tire and is a key factor in keeping operating costs to a minimum. Continental truck tires can still be used even if the tread is worn off, as they can be re-treaded with no loss in quality. To supplement Continental's new tire range, we have therefore included a hot-retreaded and a cold-retreaded line of tires under the ContiRe and ContiTread brand names.

In our eight key European markets, Conti360°Fleet Services offers our fleet customers, for example transportation companies, comprehensive services by means of a network of select service partners. Conti360°Fleet Services includes five elements and ranges from choosing the right tire with the ContiFitmentService, through the ContiBreakDownService for fast assistance with a breakdown, to ContiFleetReporting for determining potential savings when it comes to the fleet's tires. Continental's interplay of service and product effectively provides its customers with the optimized total costs for the fleet.

The Industrial Tires business unit sells its products worldwide. Continental industrial tires are used on roads, at construction sites, ports, airports, large industrial plants, in the beverage industry – in fact, wherever a lot is moved. This includes, for example, tires used in road gritting and road maintenance applications, in stacking and lifting jobs on forklifts, and in transporting goods on a wide range of surface types. We have a diverse spectrum of products, ranging from solid rubber tires for situations in which avoiding punctures and preventing repairs are the key criteria, to tires with a light-colored tread for food factory applications, for example.

Commercial Vehicle Tires Division: Sales by regions (as of December 31, 2010)

Market positions
Worldwide, we are number four in the truck tire market. In Europe, we are number two in the original equipment business and number four in the overall truck tire market. We are Europe's market leader for industrial tires.

Distribution of sales
18% of the Commercial Vehicle Tires division's sales relates to business with vehicle manufacturers and 82% to the replacement business.

Opportunities for future growth
In the year under review, we concluded an off-take and delivery agreement for truck tires in Russia. This gives our sales in the region an excellent starting point for further significant growth. The agreement guarantees Continental the delivery of up to 200,000 truck tires for the Russian market. They are manufactured at the tire plant in Nizhnekamsk, which has an annual capacity of 1.2 million tires. Continental provided technology support during the construction of this production facility.

The Commercial Vehicle Tires division successfully positioned itself as a provider of mobility solutions on the key European markets in 2010 by integrating products and services. Activities in the EMEA region therefore focused on the growing business with fleet customers. The Europe-wide Conti360° network will be expanded from eight to 15 countries in 2011. Since 2010, the ContiBreakdownService has been offered in 37 European countries instead of the previous 25.

Conti360° Fleet Services are also being set up in Asia. They will be introduced there starting in 2012 on the Malaysian and Australian markets and in Thailand in the next step. Tire technology, which is being presented during a truck roadshow in Malaysia in 2011 as well as on other occasions, economy and ContiLifeCycle are also focus areas. Moreover, the business unit is further expanding its product portfolio in the growth segments.

The Americas business unit is also concentrating on speeding up the establishment of ContiLifeCycle solutions in the entire region. In the next one and a half years, tire production and sales will also be increased further – combined with a clear fleet approach.

The Industrial Tires business unit is solidifying its global market presence with local sales organizations to generate above-average growth in America and Asia. We are systematically gaining new clients in our partnership with the tire trade. There is additional growth potential in the successful launch of the new CRT2 radial tire line, which is designed for the extreme requirements in materials handling, and in the launch of the secondary brand Ameri*Steel in the U.S.

top

ContiTech Division

The ContiTech division is a specialist in rubber and plastics technology. With its high-tech products and systems, ContiTech is a global development partner and OEM to the automotive industry, machine and plant construction, railway engineering and printing industries, the building trade, as well as to the mining, chemical, petrochemical, shipping and aviation industries. Our products have many uses – they are flexible and thermally stable, formable, abrasion-resistant, reversible and eco-friendly. They lend themselves well to combinations with other materials such as glass, metal, and ceramics.

ContiTech has 56 production locations in 18 countries. In 2010, 25,833 employees generated sales of €3.1 billion. ContiTech is divided into seven business units:

• Air Spring Systems
• Benecke-Kaliko Group
• Conveyor Belt Group
• Elastomer Coatings
• Fluid Technology
• Power Transmission Group
• Vibration Control

The Air Spring Systems business unit is the world's leading development partner and manufacturer of selfadjusting air suspension systems. Its components and complete systems are installed in commercial vehicles, buses, rail vehicles, stationary machines and foundation supports. The unit also offers air actuators for industrial pneumatic systems, as well as rubber compensators, which are used in plant and machine engineering.

The Benecke-Kaliko Group is the world's leading manufacturer of surface materials for vehicle interiors. Its products are used, for instance, on instrument panels, door trim panels, center consoles and seats. These innovative interior trim materials protect people, the environment and the climate. Benecke-Kaliko sets the same standards worldwide, thus ensuring that its products are made under the same environmentally compatible conditions over the long term.

The Conveyor Belt Group provides solutions for reducing energy consumption and CO2 emissions. Its smooth-running ContiTech conveyor belts, for example, have an ultra-energy-optimized design. Moreover, they are a much more eco-friendly and economical way of transporting raw materials.

The Elastomer Coatings business unit develops and manufactures innovative printing blankets, coated fabrics and diaphragm materials, as well as threedimensionally engineered products like gas holder diaphragms and flexible tanks. Elastomer Coatings is the world leader for diaphragms for fuel management systems, life raft materials and climate-neutral printing blankets.

Products of the Fluid Technology unit range from hose components to complex line systems for the automotive industry and many other sectors. Rubber, plastic, textiles, steel and aluminum are used in hoses, curved hoses, hose lines and tubing as well as their fitting components.

The Power Transmission Group is a development partner and manufacturer of everything from drive belts and matched components right up to complete belt drive systems. Its products and systems are used in the automotive industry as well as in machine and plant construction.

The Vibration Control business unit is a worldwide recognized specialist in vibration control technology and noise isolation. Products and systems are developed for automotive uses to control vibration and minimize noise in vehicles, in addition to sealing systems for chassis, steering and brake applications. In the industry market segment, this unit is a development partner and an original equipment supplier of parts for industrial and agricultural vehicles as well as for engine, machine and plant construction.

Market positions
At a global level, we are number one in highly advanced technical products made of elastomers and plastic components. The division is the world leader in products such as vehicle hoses and hose lines, foils and leatherette for vehicle interiors, conveyor belts and conveyor belt accessories for mining and industry, as well as air springs for rail vehicles, commercial vehicles and buses.

ContiTech Division: Sales by regions (as of December 31, 2010)

Distribution of sales
54% of sales in the ContiTech division relates to business with vehicle manufacturers, and 46% relates to business with other industries and in the replacement market.

Opportunities for future growth
We continue to see growth opportunities in the Chinese market. The plant in Changshu, China, began operations in 2010 and will be expanded further in 2011. A compounding center will also be integrated there. The Vibration Control, Air Spring Systems and Fluid Technology units produce at this location. Thanks to the takeover of the conveyor belt operations of a Chinese company, the Conveyor Belt Group strengthened its market position. We intend to more than double our sales in China by 2015.

As a result of the planned plant expansions in Ponta Grossa, Brazil, and San Luis Potosí, Mexico, we expect further growth in South America and NAFTA.

We anticipate stronger growth in Eastern Europe thanks to the Conveyor Belt Group's increased production capacity in Serbia.

The Vibration Control business unit expects to generate additional sales from its strong involvement in the global wind power industry.

top