1. Prof. Dr. Christian v. Albrichsfeld. Bucuresti, 4.6.2013
Piata auto locala, intre investitii si scaderi Continental as example for an investor in Romania
Prof. Dr. Christian v. Albrichsfeld.
Bucuresti,

2. Agenda Continental Worldwide 1. Continental in Romania 2.
Why Romania: Advantages and Specifics in Romania 3.

3. 16-Apr-17
Continental Corporation 291 Locations in 46 Countries, ~ employees, end 2012
Europe
South America
Argentina
Brazil
Chile
Ecuador
Asia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Africa
Republic of South Africa
Tunisia
Australia
Austria
Belgium
Denmark
Finland
France
Germany*
Greece
Ireland
Italy
Netherlands
Norway
Czech Republic
Hungary
Kazakhstan
Poland
Romania
Russia
Serbia
Slovakia
Turkey
North America
Canada
Mexico
USA
Portugal
Spain
Sweden
Switzerland
United Kingdom
Since 1871
Sales of €32.7 billion
One of top 5 automotive supplier
Status: January 2013
*Headquarters in Hanover

4. 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.
We develop and produce a number of products and systems in line with the automotive industry's megatrends that make driving safer, more comfortable and more sustainable. In some cases, they represent several trends rather than just one.

5. Continental in Romania end December 2011 10 locations, ~ 10,500 Employees, ~ 575 Mio € Investment
Hungary
Serbia
Ukraine
Moldavia
Black Sea
Bulgaria
530 km
735 km 1 3 5 6 7 8 9 10
Bucharest
Sibiu
Iaşi
Timişoara
Chişinau
Carei
Arad
Slatina 2 4
Braşov
Continental Automotive Headcount
Sibiu Engineering Center & Electronic Manufacturing
Timisoara, former SV
Engineering Center & Electronic Manufacturing
Iasi, former SV
Engineering Center
Brasov
Electromechanical Manufacturing
Total engineering: ~ 3,000 Total Manufacturing: ~ 2,200 Total Automotive: ~ 5,200
Tires
Timisoara
Division – Passenger and Light Truck Tires, Replacement and OE
Slatina – Joint Venture Continental & Pirelli
Production: Steelcord
Sacalaz
East European Tire Distribution Center Contitech
Power Transmission belts
Contitech Fluid – Air Conditioning Components + New Division: Power Steering & Hydraulic Systems
Carei - Contitech Phoenix
Division: Coolant hoses and hose modules
Nadab - Contitech Thermopol
Products: Colant hoses and hose modules
Total employees: ~ 10,500 1 2 3 4 5 6 7
6 legal entities in 10 locations.
Continental
Top employer
Top investor
Top products & technologies
Good citizen of the community 8 9 10
* Including leased variable employees

6. Continental in Romania end December 2012, 10 locations, ~ 11,850 Employees, ~ 700 Mio € Investment
Hungary
Serbia
Ukraine
Moldavia
Black Sea
Bulgaria
530 km
735 km 1 3 5 6 7 8 9 10
Bucharest
Sibiu
Iaşi
Timişoara
Chişinau
Carei
Arad
Slatina 2 4
Braşov
Continental Automotive Headcount
Sibiu Engineering Center & Electronic Manufacturing
Timisoara, former SV
Engineering Center & Electronic Manufacturing
Iasi, former SV
Engineering Center
Brasov
Electromechanical Manufacturing
Total engineering: ~ 3,500 Total Manufacturing: ~ 2,550 Total Automotive: ~ 6,050
Tires
Timisoara
Division – Passenger and Light Truck Tires, Replacement and OE
Slatina – Joint Venture Continental & Pirelli
Production: Steelcord
Sacalaz
East European Tire Distribution Center Contitech
Power Transmission belts
Contitech Fluid – Air Conditioning Components + New Division: Power Steering & Hydraulic Systems
Carei - Contitech Phoenix
Division: Coolant hoses and hose modules
Nadab - Contitech Thermopol
Products: Colant hoses and hose modules
Total employees: ~ 11,850 1 2 3 4 5 6 7
6 legal entities in 10 locations.
Continental
Top employer
Top investor
Top products & technologies
Good citizen of the community 8 9 10
* Including leased variable employees

7. National visibility: Continental – Top 1 Automotive Supplier
April 2013(Catalyst Survey):
4th as „most desired employer“
1 Oracle
2 Google
3 Microsoft
4 Continental
5 OMV Petrom
6 IBM
7 BCR
8 Orange
9 P&G
10 Coca-Cola
11 Vodafone
12 BRD
13 HP
Renault Romania
KPMG
plan
actual
Student Survey
June 2012 (ZF):
1st as „Automotive Supplier“
* all legal entities

8. Product Portfolio Continental Rubber Group Romania Plant Production
Tires Division (Timisoara)
ContiTech Division Power Transmission (Timisoara)
ContiTech Division Fluid Technology (Timisoara + Carei + Nadab)
Passenger Tires
Light Truck Tires
V-Belts
Timing Belts
Multi-Rib Belts
Agriculture Belts
Air Conditioning - Lines
Power Steering Lines
Power Train Lines
Hoses: - Heating Cooling
- Turbocharger
- Silicon
13” – 18” tires
OE & Replacement
16” – 17” tires
OE & Replacement

9. Product Portfolio Continental Automotive Group Romania Plant Production
Chassis & Safety (Timisoara + Sibiu)
Powertrain (Brasov + Sibiu)
Interior (Timisoara + Sibiu)
Passive Safety & ADAS
Chassis Components
Fuel Supply
Transmission
Instrumentation & Driver HMI
Body & Security
Central Displays
Airbag Control Units
SPEED Platform
Airbag Control Units
Instrument Cluster
Fuel Supply Pump
Body Control Module
Electronic Parking Brakes
Underhood Switching Module
Electronic Parking Brakes
Transmission Control Units

10. Product Portfolio Continental Automotive Group Romania Activities R&D (3500 employees in R&D)
Chassis & Safety
Powertrain
Interior
Electronic Brake Systems
Passive Safety & ADAS
Chassis Components
Engine Systems
Transmission
Hybrid Electric Vehicle
Instrumentation & Driver HMI
Infotainment & Connectivity
Body & Security
Commercial Vehicles &
Aftermarket
Instrument Cluster
Secondary Display
Head-up Display
Electronic Hydraulic Combi Brake (EHC)
Injectors
ECU Gasoline Engine
ECU
ABS/ESC
Connected Radio
Multimedia System
Airbag Control Unit
Closing Velocity Sensor
ClipSat – Pressure Satellite
Camera Sensor Family
HAP 511, 542, 728
DQ:200
T76
Body Control Unit
Intelligent Battery Sensor
Key
Tire Guard
Wheel Unit
DC-DC Convertor Driver for Electric Engine
Battery Controller
Steering System
Force Feedback Pedal
Air Spring Damper
Onboard Collection Unit
Instrumentation & HMI
Tachograph

11. Continental in Romania – 12 Years of Progress and Achievement
Continental Automotive Romania SRL (former Siemens VDO) starts the green field in Timisoara
ContiTech Romania S.R.L opens the plant in Timisoara
Continental Automotive Romania SRL (former Siemens VDO) opens a plant in Brasov
Continental Automotive Romania SRL (former Siemens VDO) opens an R&D location in Iasi and a plant in Timisoara
2000
2006
2010/11
2001
2004
2007
Continental Automotive Products SRL starts the green field location in Timisoara
Continental Automotive Systems SRL opens the plant in Sibiu
Thermopol Romania SRL
opens the plant in Nadab
Continental acquires Siemens VDO Automotive AG and advances to among the top five suppliers in the automotive industry worldwide, at the same time boosting its market position in Europe, North America and Asia.
ContiTech Fluid Automotive Romania SRL starts production in Carei

12. Why Romania? Good Cost / Performance ratio
Good Qualification (University Education)
Great Language Skills (German, English, French, …)
Cultural and Geografic Proximity to Middle and Westeurope
Good support from local authorities
Flat-Tax and Subsidies for Investments
EU Legislative System
Continental found in the last 12 years good Business environment for growth (export-oriented company)
However …
Ungarn
Serbien
Ukraine
Moldavien
Black Sea
Bulgarien
530 km
735 km
1.5 hours drive until reaching the Highway
Bukarest
Sibiu
Hermannstadt
Iaşi
Temeschburg Timişoara
Chişinau
Cluj
Klausenburg
Arad
Craiova
Braşov
Kronstadt
Satu-Mare
Sathmar
Ploiesti
Pitesti
Konstanza
Belgrad

13. Foreign Direct Investments in Romania
Smallest value in the
Last 10 years
Romania not to loose
competitive advantages !
Grafik entnommen aus: AHK-Broschüre, ‘Rumänien Leistungsstarker Standort‘ 2013
Source: BNR

14. Human Resources Education Level
Worker
Vocational schools (scoala profesionala) not existing in practice; (education not up-to- date) (Continental started pilot classes according to New law/German model)
Educated „master craftsmen“ (Meister/mester) and technician in practice not existent
Good knowledge of foreign languages also at workers (some are university graduates of non-technical faculties)
University level
High level of education, but also „volume-oriented“
Theoretical education, more teaching of knowledge, less problem-solving competence
 Need of additional trainings inside the companies

15. Human Resources Labour Market
Still competitive labour costs
Big towns are crowded with companies (e.g. Timisoara, Sibiu, Brasov, Iasi)
Difficult to find good employees
Experienced Employees to be hired from other companies  „War of Talents“
Dynamic Labour Market with high salary increases
Difficult to retain people in competition with (North-) West-Europe (e.g. Germany) especially well educated key players
Not just salaries
Up to date Educational system
Stable and secure health/social system
Live standard in cities

16. Infrastructure / Legal / Subsidies
Highways from major cities to western border still not existing (for trucks almost 1 day from Brasov to Hungarian border/ European Highway net)
Availability of office space or construction land varies locally
Legal / Tax System
Stable fiscal system required and legal certainty necessary; changes “over night”  planning needs to be possible for 5 years in advance
EU-legal system (but high Bureaucracy)
Subsidies
Legislation existing and tendencies visible for improvement but in detail the legislation creates even more bureaucracy (even more than European Fonds) instead of helping
Direct subsidies for creation of jobs and investments would help
Commitment Culture
Authorities need to keep commitments and promises (independent of party changes)
Investors currently choose the countries based on reliability

17. Quintessence
Romania is still interesting as investment country for autmotive industry
Bound in in European Union
Competitive work force existing
Important where to invest (competition with existing companies)
Implication of State and Authorities needs to be increased
Stability/Predictability of legal and tax system
Bureaucracy
Subsidies
Commitment culture
Keeping of work force by improving live quality (health, education, social system)

18.
140 Years Continental
1871 – 2011
Mulţumesc mult pentru atenţia dumneavoastra! Thank you for your attention!