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Continental’s journey towards Industrie 4.0Rainer Heining, Atlanta, GA Nov. 2016

www.continental-corporation.com A IT MA

PublicIoTfM - Atlanta Nov 2016

›Since 1871 with headquarters in Hanover, Germany

›Sales of €39.2 billion

›207,899 employees worldwide

›430 locations in 55 countries

Continental CorporationOverview 2015

November 4, 20162Rainer Heining © Continental AG

Chassis & Safety21%

Powertrain18%

Interior21%

Tires26%

ContiTech14%

Sales by division in %

Status: December 31, 2015

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Continental CorporationKey Figures for the Divisions in 2015

November 4, 20163Rainer Heining © Continental AG

Salesin € millions

EBIT*in € millions

Adjusted EBIT**in € millions

Employees

Continental Corporation 39,232.0 4,115.6 4,455.5 207,899

Automotive Group 23,574.5 2,014.4 2,066.1 115,888

Chassis & Safety 8,449.7 814.3 817.2 40,062

Powertrain 7,068.5 395.6 424.6 35,364

Interior 8,154.8 804.5 824.3 40,462

Rubber Group 15,704.6 2,255.8 2,544.0 91,603

Tires 10,408.8 2,085.2 2,109.0 48,955

ContiTech 5,367.8 170.6 435.0 42,648

*Earnings before interest and taxes.**Before amortization of intangible assets from PPA, changes in the scope of consolidation, and special effects.

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Continental Corporation Five Strong Divisions

November 4, 2016

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Rainer Heining © Continental AG

Chassis & Safety

Vehicle Dynamics

Hydraulic Brake Systems

Passive Safety & Sensorics

Advanced Driver Assistance Systems (ADAS)

Powertrain

Engine Systems

Transmission

Hybrid ElectricVehicle

Sensors & Actuators

Fuel & ExhaustManagement

Interior

Instrumentation & Driver HMI

Infotainment & Connectivity

Intelligent Transportation Systems

Body & Security

Commercial Vehicles & Aftermarket

Tires

PLT,Original Equipment

PLT, Repl. Business,EMEA

PLT, Repl. Business,The Americas

PLT, Repl. Business,Asia Pacific

Commercial Vehicle Tires

Two Wheel Tires

ContiTech

Air Spring Systems

Benecke-KalikoGroup

Compounding Technology

Conveyor Belt Group

Elastomer Coatings

Industrial Fluid Systems

Mobile Fluid Systems

Power TransmissionGroup

Vibration ControlPLT – Passenger and Light Truck Tires

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Smart FactoryOne possible and practical definition of Industrie 4.0

5Rainer Heining, © Continental AG04.11.16

The next phase in the digitalization of the manufacturing sector, driven by four disruptions:

I. Rise in data volumes, computer-based power, and connectivity

II. New capabilities in analytics and business-intelligence

III. New forms of human-machine interaction (touch interfaces, augmented-reality systems)

IV. Improvements in transferring digital instructions to the physical world, such as advancedrobotics and 3-D printing

* Source: McKinsey, Cornelius Baur and Dominik Wee

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Elements of Industrie 4.0Continuous & Disruptive Innovations / Technologies / Trends

ContinuousInnovation

Disruptive

Software & Services

3D Printing

Big DataCollection & Analytics

Artificial Intelligence

Cloud Storage & Applications

Augmented Reality

Advanced Robotics(CoBot & aAGV)

Smart Sensors & Actuators

1

1

1

(Mobile & Wearable Devices)

2

2

Focus onIndustrie 4.0 in 2016/2017

1

Long termresearch

2

6

Rainer Heining, © Continental AG04.11.16

PublicIoTfM - Atlanta Nov 2016

Industrie 4.0 Elements to Improve Our ProcessesProcess-Mapping

Material Flow Advanced Robotics,

Augmented Reality, SW & Services

Production 3D Printing, Advanced

Robotics,

PhysicalProcess

Supply Chain Management

Smart Sensors & Actuators, Big Data, 3D Printing

Shop Floor ManagementAugmented Reality,

Big Data

Execution

Facility ManagementBig Data, Sensors

& Actuators, SW & Services

Maintenance Augmented Reality, Big Data,

Sensors & Actuators

AssetManagement

7

Rainer Heining, © Continental AG04.11.16

PublicIoTfM - Atlanta Nov 2016

Ligh

thou

sePr

ojec

tsI4

.0 E

lem

ents

Smart Factory – Big PictureLighthouse Projects Using I4.0 Elements

Software & Services

3D Printing

Big DataCollection &

Analytics

Artificial Intelligence

Cloud Storage & Applications

Augmented Reality

(Mobile & Wearable Devices)

Advanced Robotics

Smart Sensors & Actuators

Work 4.0Big Data Lab

8

Advanced Robotics

04.11.16Rainer Heining, © Continental AG

Ideal BackendIdeal SMD Line

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9Rainer Heining, © Continental AG

Ideal SMD Line Examples for Implemented M2M Communication

Cooling Buffer to Reflow Oven:I have no more space available.

Do not solder anymore parts.

AOI stops SMD Placer:Jidoka alarm! Stop the SMD placers. System

administrator, look at SMD placer 3.

SPI (Solder Paste Inspection) toPrinter:

High failure rate!Correct your printing offset and clean your

stencil.

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An example of monthly deliveries and distances of aAGVs:

Cyber Physical System

Ideal SMD LineExample: SMD Replenishment System with aAGV

aAGV

OK. I‘ll deliverthe components

from the warehouseto the SMD Line.

3

In 20 min, I have toproduce product xy.Please deliver the

necessary components.

1

SMD Line

InventoryManagement

System OK.I‘ll deliverthem to theaAGV.

2

10

Rainer Heining, © Continental AG04.11.16

PublicIoTfM - Atlanta Nov 2016

Future Architecture

02.11-1611Rainer Heining © Continental AG

Manufacturing Shop Floor

MES DWH

browser

PRiMEiGate

Operator & Equipment Interfaces

IoT Protocols

MES Business Logic Service

browser mobile

PRiMEBI

In MemoryTechnology

BusinessData Models

Technologies

StreamApplications

NoSQL - Volume- Variety- Velocity

hadoop

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for your attention!Thank you

November 4, 201612Corporate Communications © Continental AG