Commerzbank 18 th German Investment Seminar. New York January 11-12, Ticker: ce CON ADR-Ticker: CTTAY

Transcription

1 Commerzbank 18 th German Investment Seminar Ticker: ce CON ADR-Ticker: CTTAY Wolfgang Schaefer CFO

2 AGENDA 1 Corporation Highlights g Opportunities and Challenges in 2016 and in the Medium Term Outlook What to Expect from Continental in the Medium Term 21 5 Back-Up and Fact Sheets M EDMR Equity and Debt Markets Relations 2

3 1) Corporation Highlights 2015 Most Important KPIs FY 2015 Sales up by 14% to~ bn, organic sales growth at 4% Adj. EBIT 1 totaled ~ 4.4 bn, adj. EBIT 1 margin ~11.7% Free cash flow before acquisitions amounted to ~ 2.4 bn, leading to a cash conversion 2 of >85% Net debt below 3.9 bn after partial funding of pension obligation ( 350 mn); gearing ratio <30% at YE 2015 Q market environment 3 : Automotive Group adj. EBIT 1 margin in Q stood at 9.1% (OL 4 in FY 2015 at 15%) Winter tire sales close to record level of prior year; overall tire volumes in Q up by 12%; Q4 sales and EBIT in the Tire division therefore comfortably above prior year levels Special items recognized in ContiTech amounted to 102 mn in Q Term loan reduced from 1,500 mn to 350 mn in Q Before amortization of intangibles from PPA, consolidation and special effects 2 Cash flow before financing activities and acquisitions divided by net income attributable to the shareholders of the parent 3 Based on preliminary data available 4 OL = operating leverage EDMR Equity and Debt Markets Relations 3

4 1) Corporation Highlights 2015 Sales and Adjusted EBIT 1 by Quarter FY Sales 33,331 mn FY Sales 34,506 mn FY Sales ~ 39.2 bn FY adj. EBIT 1 ~ 4.4 bn 9,569 10,030 9,618 ~10,000 8,033 8,541 8,350 8,407 8, ,918 8,528 8, , ~940 1,054 1,250 1,076 ~1,054 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 1 Before amortization of intangibles from PPA, consolidation and special effects Sales (mn ) Adj. EBIT (mn ) 1 EDMR Equity and Debt Markets Relations 4

5 1) Corporation Highlights 2015 Automotive Group and Rubber Group by Quarter Automotive Group Rubber Group Sales (mn ) Adj. EBIT (mn ) 1 1 Sales (mn ) Adj. EBIT (mn ) 4,911 5,160 4,945 5,000 5,129 5,17 5,16 5,442 5,912 5,996 5,661 ~6,000 3,132 3,392 3,415 3,417 3,271 3,362 3,518 3,487 3, ,045 3,9688 ~4, ~ ~ ~ ~560 Q1/1 Q2/1 Q3/1 Q4/1 Q1/1 Q2/1 Q3/1 Q4/1 Q1/1 Q2/1 Q3/1 Q4/ Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 1 Before amortization of intangibles from PPA, consolidation and special effects EDMR Equity and Debt Markets Relations 5

6 2) Opportunities and Challenges 2016 and in the Medium Term 2016 Europe further recovering vs. NAFTA at peak? China GDP growth slowed but stimulus will allow car market to grow at least by a mid single digit Russia from recession to recovery? Brazil more challenges ahead! ContiTech: cost reduction in oil-related and restructuring in mining-related businesses, exploiting synergies, and growing business in other areas! Diesel, gasoline and electric will the mix change? Medium Term Challenges for established business models in the auto industry from three trends: Digitalization Electrification Shared mobility Size mix will further benefit from rising SUV share in EU and China EDMR Equity and Debt Markets Relations 6

7 2) Opportunities and Challenges in 2016 European Recovery vs. North America at Peak Opportunities European production volume is recovering but further growth largely dependent on Italy, Spain and Germany Continental s content per vehicle is highest in Europe compared to other regions Challenges NAFTA production volume is already 12% above the level preceding the global financial crisis We expect some growth in H1 but see H challenged by high comparative figures and further interest rate hikes 1 Passenger car and light truck (<6t); source: IHS and own estimates PC & LT 1 production (mn units) Europe Average age of the fleet in years 2015E PC & LT 1 production (mn units) NAFTA Average age of the fleet in years 2016E E 2016E EDMR Equity and Debt Markets Relations 7

8 2) Opportunities and Challenges in 2016 China Decelerated Growth Ahead Challenges Chinese GDP growth has obviously slowed over the past couple of years Further growth increasingly dependent 6 on stimuli but government still has 4 plenty of measures at their disposal 2 Opportunities China PC & LT production grew by 3% in 2015 thanks to the stimulus initiated in Q4 1 ; 2016 could benefit in addition from rural subsidy plans China presents Continental with both market and content growth; 40% of our order intake meanwhile with Chinese OEMs % China GDP growth YOY 2 China GDP YOY (NSA) Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q E 2016E 6.7 China PC & LT 3 production % 26% E2016E Chinese car production (mn units) Share in global car production 1 Cut in purchase tax from 10% to 5% from October 1, 2015, to December 31, 2016, for vehicles with engines <1.6l E and 2016E: IMF Oct 2015 Update 3 Passenger and light truck; source: IHS EDMR Equity and Debt Markets Relations 8

9 2) Opportunities and Challenges in 2016 Russia from recession to recovery? Brazil more challenges ahead! Opportunities 10 Russia only represented ~0.5% of 8 Continental s global sales in 2015; 6 oil-related sector with some chance to 4 recover in H South America only represented ~3% of Continental s global sales in 2015 Mid-term both markets still offer growth potential as their share in global car production is down from 8% in 2008 to 5% in 2015 Challenges Both countries are forecasted to stay in recession during 2016; risk that IMF forecast is too optimistic, especially for Brazil Russia GDP growth YOY 1 Russia GDP YOY (NSA) Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q E 2016E Brazil GDP growth YOY 1 Brazil GDP YOY Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q E 2016E E and 2016E: IMF Oct 2015 Update EDMR Equity and Debt Markets Relations 9

10 2) Opportunities and Challenges in 2016 Oil and Mining Related Sectors Impacting ContiTech Challenges in 2016 Oil and mining related exposure amounts to ~25% of ContiTech sales Measures implemented in Fluid Technology to align costs Restructuring initiated in Conveyor Belt Group to align capacity No recovery in mining-related businesses before 2017 expected Opportunities in the medium term 75% of the business in good shape Veyance integration implemented Synergies still to be exploited Oil-related business with some chance to recover in H Oil price and rig count data Jan-07 Jul-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec Oil WTI ($/b) Oil & Gas Rotary Rig Count Data (US; rs) Mining Capex 2008 Mining Capex (mn US$) E 2016E 2,500 2,000 1,500 1, Source: Company filings and consensus data for BHP, Rio, Vale, Grupo Mexico, FCX, ABX, GG, NEM, NCM, TCK/B, ANTO, NUE, AA, KGC, AEM, EGO E EDMR Equity and Debt Markets Relations 10

11 2) Opportunities and Challenges in 2016 Relative Value of Continental s Content in Engines 1 Gasoline-related business Diesel-related business HEV-related business FEV-related business 100% 1 160% % 300% Engine management systems for solenoid direct injection (injector, ECU, pressure pumps) Exhaust aftertreatment Sensors and actuators Turbochargers Engine management systems for diesel piezo common rail injection (Injector, ECUs, pressure pumps) Exhaust aftertreatment Sensors and actuators Engine management systems (gasoline/diesel) Exhaust aftertreatment Sensors and actuators Turbochargers and 48V solutions or Plug-in hybrid solutions High voltage axle drive Power electronics Battery management systems Inverters and DC/DC converters Electric water pumps Well positioned in all key technologies 1 Value of displayed gasoline content per car is indexed at 100%; all other values read relative to the gasoline content EDMR Equity and Debt Markets Relations 11

12 2) Opportunities and Challenges in the Medium Term Digitalization, Electrification and Shared Mobility Digitalization Electric Mobility Shared Mobility Conti s view/position: Conti s view/position: Conti s view/position: Market for automated driving 1 is forecasted to exceed 25 bn by % of our Automotive sales in 2015 are derived from sensors, electronics or software products Vision Zero accidents achievable FEV 2 sales to account for 2% of global car production by 2025 Costs for battery will predominantly drive demand for FEV 2 Conti so far invested more than 1 bn in electric mobility VCP 3 to decrease but more intense use will lead to a greater VCP 3 turn Shared mobility therefore should not lead to a decrease in miles travelled individually According to our own survey 4, the vast majority of people still want to own a car All medium-term mobility scenarios still foresee tires on vehicles 1 Goldman Sachs Report, Cars 2025: Vol. 3 (Sept 2015) 2 FEV = Full Electric Vehicle 3 VCP = Vehicle Car Park 4 Continental Mobility Study 2015 EDMR Equity and Debt Markets Relations 12

13 2) Opportunities and Challenges in the Medium Term Digitalization 1,227 1,3681,4751,589 ~2, , % 75% 7.5% 76% 7.6% 7.9% 8.8% 9.0% E R&D cost ( mn) R&D (in % of sales) More 9.5 bn spent on R&D >12,000 software engineers Active in all relevant areas in the Automotive Group Sound foundation to fund future R&D requirements System integration capabilities further strengthened by Elektrobit Automotive acquisition One of the broadest product portfolios for sensors, actuators and electronic control units (ECUs) EDMR Equity and Debt Markets Relations 13

14 2) Opportunities and Challenges in the Medium Term Electrification Crucial points for electric mobility Electrification volumes for regulated markets 1 (mn units) Battery reaches a minimum of 500 km 50 Lifetime of a battery minimum 200, km Charging time not longer than a coffee break Wireless charging via induction Battery cost per kilowatt-hour (kwh) has to decrease from to 10 below Europe, NAFTA, China, Japan 48V FHV PHEV FEV EDMR Equity and Debt Markets Relations 14

15 2) Opportunities and Challenges in the Medium Term Shared Mobility Overrated? 1 Continental Mobility Study 2015 Respondents agreeing g with statement EDMR Equity and Debt Markets Relations 15

16 2) Opportunities and Challenges in the Medium Term Tire Capex Peaked in 2013 Opportunities Global replacement tire market to grow with a CAGR of 4% from 2015 to 2020E according to LMC Europe to stay the largest replacement tire market by volume; CAGR to accelerate to 3% from 2015 to 2020E China to keep double digit CAGR from 2015 to 2020E Challenges Pricing impacted by raw material price trends Stalling top line growth increases need for strict cost management World Market for PC & LT 1 rep. tires 0,91 CAGR 3% 1,12 10% 8% 24% 22% 7% 13% 30% 25% CAGR 4% 1,36 9% 23% 19% 22% 33% 29% 26% E Europe NAFTA China Rest of Asia Rest of World 10,000 8,000 6,000 4,000 2,000 Tire Capex E (mn ) 1 Passenger and light truck replacement tire market in bn units; source: LMC (December 2015) 2 Company filings and forecasts (based on public information from 14 tire companies) E EDMR Equity and Debt Markets Relations 16

17 2) Opportunities and Challenges in the Medium Term Improving Tire Mix due to Rising SUV & Pickup Share PC & LT 1 Production Europe Share of SUVs and Pickup Trucks PC & LT 1 Production NAFTA Share of SUVs and Pickup Trucks 46% 49% 53% 53% 4% 12% 22% 28% E E PC & LT 1 Production China Share of SUVs and Pickup Trucks PC & LT 1 Production Worldwide Share of SUVs and Pickup Trucks 6% 11% 28% 32% 21% 21% 32% 34% E 1 Passenger car & light truck (<6t); source: IHS Dec E EDMR Equity and Debt Markets Relations 17

18 2) Opportunities and Challenges in the Medium Term Oil Price Decline is Positive for Tire Demand Opportunities Further cost relief in the Rubber Group likely Import duties and FX trends positive for US and Europe Increased affordability of mobility should up replacement tire demand Vehicle and engine mix to benefit further Challenges Oil-related business under pressure Electric mobility likely to suffer Tire pricing i will be impacted by recent raw material price trends 1 Annual vehicle-distance traveled; source: U.S. Department of Transportation (Oct 2015) 2 Source: U.S. Bureau of Labor Statistics Ja an-07 3,100 3,000 2, Oil price (WTI in $/b) Jan-07 Jul-07 Jan-08 Ju ul-07 De ec-07 Ju un-08 Jul-08 De ec-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Ju un-09 De ec-09 Ju un-10 De ec-10 Ju un-11 De ec-11 Ju un-12 De ec-12 Ju un-13 De ec-13 Ju un-14 De ec-14 Jul-15 Ju un-15 Jan-16 De ec-15 Miles traveled 1 (bn miles in U.S.) U.S. Consumer Price Index 2 tires (1984 =100) Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 EDMR Equity and Debt Markets Relations 18

19 3) Outlook 2016 Market Outlook for Major Regions PC & LT 1 Production (mn units) Commercial Vehicle 2 Prod. (k units) 2015E 2016E E 2016E 1,575 1, % Europe NAFTA South Americai Source: IHS and own estimates Asia PC & LT Repl. 3 Tire Market (mn units) 2015E 2016E Europe NAFTA South America Source: IHS and own estimates Asia CV Repl. 4 Tire Market (mn units) 2015E 2016E Europe NAFTA South America Source: LMC and own estimates Asia Europe NAFTA South America Source: LMC and own estimates Asia 1 Passenger car and light truck <6t 2 Heavy vehicles >6t 3 Passenger car & light truck replacement 4 Commercial vehicle replacement (radial and biased) EDMR Equity and Debt Markets Relations 19

20 3) Outlook 2016 Continental Corporation 2015E 2016E Consolidated sales adj. EBIT 1 margin Automotive Group adj. EBIT 1 Rubber Group adj. EBIT 1 Raw material cost impact Special effects ~ 39.2 bn ~11.7% ~ 23.6 bn ~ 2.06 bn ~ 15.7 bn ~ 2.52 bn Relief of about ~ 250 mn ~- 120 mn To increase to ~ 41 bn Comfortably achieve >10.5% March 3, 2016 March 3, 2016 Raw materials to positively affect Rubber Group results in Q by about 30 mn About mn Net interest result Tax rate Capex PPA Free cash flow before acquisitions <- 300 mn ~28% < 2.2 bn ~ 140 mn <- 250 mn ~30% Capex at around 6% of sales PPA amortization: ~ 150 mn ~ 2.4 bn At least 1.8 bn 1 Before amortization of intangibles from PPA, consolidation (2015 in comparison to 2014) and special effects EDMR Equity and Debt Markets Relations 20

21 4) What to Expect from Continental in the Medium Term Value Creation via Growth Automotive Group Growth in electronics, sensors and software business Further investment in electric mobility, lever Powertrain portfolio Continued leading position in digitalization trends Further explore and exploit partnerships to shape future connectivity trends Rubber Group Rational action Use of growth opportunities by globalizing business further Growth of absolute EBIT Corporation Cash in focus; continued high level of cash conversion Strengthened balance sheet in face of a volatile economic environment Opportunities taken when additions to the portfolio promise additional value creation EDMR Equity and Debt Markets Relations 21

22 4) What to Expect from Continental in the Medium Term More than 50 bn in Sales and >20% ROCE by 2020 >50,000 34,506 24,239 11,408 11% 20% >20% 1 Passenger cars and light trucks -2% Sales (mn ) ROCE (in %) EDMR Equity and Debt Markets Relations 22

23 Thank you! Official Sponsor of the UEFA European Football Championship p EDMR Equity and Debt Markets Relations 23

24 Disclaimer This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Commerzbank conference (18 th German Investment Seminar) on January 11-12, 2016, in New York. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever. Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic or of the date they are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations ti in currency exchange rates or interest trates, the introduction ti of competing products, the lack of acceptance for new products or services and changes in business strategy. All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be, an accurate or proper definition of regional and/or product markets or market shares of Continental and any of the participants in any market. Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and percentages. EDMR Equity and Debt Markets Relations 24

25 Contact Equity and Debt Markets Relations Vahrenwalder Str. 9 Michael Saemann Hanover Analysts, Institutional Investors and Sustainability Investors Germany Phone: ir@conti.de michael.saemann@conti.de Klaus Paesler Rolf Woller Analysts, Institutional Investors, ADR and Private Investors Head of IR Phone: Phone: klaus.paesler@conti.de rolf.woller@conti.de Sabine Reese Ingrid Kampf Sustainability, ASM, CMD Organization, IR Webpage, Assistant t to the Head of IR Capital Market Disclosure Requirements Roadshow and Conference Organization Phone: Phone: sabine.reese@conti.de Fax: ingrid.kampf@conti.de Henry Schniewind Analysts, Institutional Investors Phone: henry.schniewind@conti.de Marvin Kalberlah Social Media Phone: marvin.kalberlah@conti.de EDMR Equity and Debt Markets Relations 25

26 Continental Financial Calendar 2015 Annual Financial Press Conference March 5, 2015 Annual Shareholders Meeting (incl. key data for Q1 2015) April 30, 2015 Q1 Financial Report May 7, 2015 Half Year Financial i Report August 4, 2015 Nine Month Financial Report November 9, Preliminary figures for the fiscal year 2015 January 11, 2016 Annual Financial Press Conference March 3, 2016 Annual Shareholders Meeting (incl. key data for Q1 2016) April 29, 2016 Q1 Financial Report May 4, 2016 Half Year Financial Report August 3, 2016 Nine Month Financial Report November 10, 2016 EDMR Equity and Debt Markets Relations 26

27 Continental Share Data / ADR Data Share Data Type of share Bloomberg Ticker Reuters Ticker No-par value share CON CONG German Security Identification Number (WKN) ISIN Number DE Shares outstanding as at December 31, ,005,983 ADR Data Ratio (ordinary share: ADR) 1:5 Bloomberg Ticker Reuters Ticker ISIN Number CTTAY CTTAY.PK ADR Level Level 1 Exchange Sponsor US OTC Deutsche Bank Trust Company Americas EDMR Equity and Debt Markets Relations 27

28 Continental Bond Data Issuer Conti-Gummi Finance B.V., Netherlands 1 Continental AG Continental AG Continental Rubber of America, Corp. 1 Issue Senior Notes Senior Notes Senior Notes Senior Notes Principal i amount 750 mn 750 mn 750 mn 500 mn Offering price % % % % Rating at issuance date Ba1 (Moody s 4 ) BB (S&P) BBB (Fitch 2 ) Ba2 (Moody s 4 ) BB (S&P) BB (Fitch 2 ) Current corporation and bond ratings 3 BBB (Fitch), BBB (S&P), Baa1 (Moody s 4 ) Ba1 (Moody s 4 ) BB (S&P) BBB (Fitch 2 ) BBB (S&P) BBB (Fitch 2 ) Coupon 2.5% p.a. 3.0% p.a % p.a. 0.5% p.a. Issue date Sept. 19, 2013 Jul. 16, 2013 Sept. 9, 2013 Nov. 19, 2015 Maturity Mar. 20, 2017 Jul. 16, 2018 Sept. 9, 2020 Feb. 19, 2019 Start of period for early redemption (60-90 days prior notice) Interest payment Annual Mar. 20 Semi annual Jan. 16/Jul. 16 Annual Sept. 9 Annual Feb. 19, commencing on Feb. 20, 2017 WKN A1VC6B A1X24V A1X3B7 A1Z7C3 ISIN XS XS XS DE000A1Z7C Denomination 1,000 with min. tradable amount 1,000 Guaranteed by Continental AG only since April 24, 2014 Non-contracted rating at date of issuance Fitch since Jul. 15, 2013; S&P since Dec. 6, 2013; Moodyʼs since June 30, 2015 Non-contracted rating since Feb. 1, ,000 with min. tradable amount 1,000 1,000 with min. tradable amount 1,000 1,000 with min. tradable amount 1,000 EDMR Equity and Debt Markets Relations 28

29 Back-up EDMR Equity and Debt Markets Relations 29

30 5) Back-up Key Historical Credit Metrics IAS 19 (rev. 2011) applied 6 (mn ) LTM Q Cash flow statement Adjusted EBITDA 2 3,662 4,247 4,822 5,094 5,318 5,897 Reported EBITDA 3,588 4,228 4,967 5,095 5,134 5,853 Net cash interest paid Tax paid Change in net working capital Other Cash flow arising from operating activities 1,849 2,289 3,785 3,722 4,168 4,689 Cash flow arising from investing activities -1,282-1,798-2,132-1,904-2,153-3,299 - thereof capex in PPE and intangibles -1,324-1,813-2,081-2,024-2,110-2,129 Cash flow before financing activities ,653 1,818 2,015 1,390 Balance sheet Cash and cash equivalents 1,471 1,541 2,397 2,045 3,244 1,849 Derivative instruments and interest-bearing investments Total indebtedness 8,991 8,562 8,253 6,638 6,432 6,521 Net indebtedness 7,317 6,772 5,320 4,289 2,824 4,296 Credit ratios Net indebtedness / adj. EBITDA 2 2.0x 1.6x 1.1x 0.8x 0.5x 0.7x Net cash interest paid coverage (Ratio) 5 5.2x 6.4x 8.4x 9.5x 33.7x 35.1x 1 Amounts shown may contain rounding differences 2 Adjusted EBITDA starting 2010 as defined in syndicated loan but IAS 19 (rev. 2011) not applied in Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes 4 Includes dividends received, income from at-equity accounted investees and other investments, including impairments, gains and losses from disposals, other non-cash items as well as changes in pension and similar obligations, and in other assets and liabilities 5 Adj. EBITDA to net cash interest paid 6 Since 2012 EDMR Equity and Debt Markets Relations 30

31 Fact Sheets M 2015 EDMR Equity and Debt Markets Relations 31

32 5) Fact Sheets Quarterly Sales Analysis Sales (mn ) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 1, , , , , , , , , , , , ,999.0 Powertrain , , , , , , , , , , , , ,657.4 Interior 1, , , , , , , , , , , , ,028.2 Tires 2, , , , , , , , , , , , ,654.4 ContiTech , , , , ,330.8 Other / Consolidation Continental Corporation 8, , , , , , , , , , , , ,617.6 Changes Y-o-Y oy in% Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Continental Corporation EDMR Equity and Debt Markets Relations 32

33 5) Fact Sheets Quarterly EBITDA Analysis EBITDA (mn ) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S , Powertrain Interior Tires , , ContiTech Other / Consolidation Continental Corporation 1, , , , , , , , , , , , ,491.7 EBITDA margin in % Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain ,505.9 Interior Tires ContiTech Continental Corporation EDMR Equity and Debt Markets Relations 33

34 5) Fact Sheets Quarterly EBIT Analysis EBIT (mn ) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires , , ContiTech Other / Consolidation Continental Corporation , , , ,034.6 EBIT margin in % Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Continental Corporation EDMR Equity and Debt Markets Relations 34

35 5) Fact Sheets Quarterly Analysis of Adjusted EBIT 1 Adjusted EBIT 1 (mn ) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Other / Consolidation Continental Corporation , , , ,075.6 Adjusted EBIT 1 margin in % Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y oy in% 2015 Q1 Q2 Q3 Q4 FY C&S Powertrain ,104.2 Interior Tires ContiTech Continental Corporation Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 35

36 5) Fact Sheets Consolidated Statement of Income (mn ) Q Q Q Sales 24, , , , , ,617.6 Cost of sales -19, , , , , , Gross margin on sales 5, , , , , ,510.6 Research and development expenses -1, , , Selling and logistics expenses -1, , , Administrative expenses Other income and expenses Income from at-equity accounted investees Other income from investments Earnings before interest and taxes 2, , , ,034.6 Interest income Interest expense Net interest expense Earnings before taxes 1, , , Income tax expense Net income 1, , , Non-controlling interests Net income attributable to the shareholders of the parent 1, , , Basic earnings per share in EUR Diluted earnings per share in EUR EDMR Equity and Debt Markets Relations 36

37 5) Fact Sheets Consolidated Statement of Financial Position Total Assets Assets in millions Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2014 Goodwill 6, , ,742.2 Other intangible assets 1, Property, plant and equipment 9, , ,159.8 Investment property Investments in at-equity accounted investees Other investments Deferred tax assets 1, , ,468.7 Defined benefit assets Long-term derivative instruments and interestbearing investments Other long-term financial assets Other long-term assets Non-current assets 19, , ,490.6 Inventories 3, , ,330.3 Trade accounts receivable 7, , ,569.3 Other short-term financial assets Other short-term assets Income tax receivables Short-term derivative instruments and interest- bearing investments Cash and cash equivalents 1, , ,013.2 Assets held for sale Current assets 14, , ,177.6 Total assets 33, , ,668.2 EDMR Equity and Debt Markets Relations 37

38 5) Fact Sheets Consolidated Statement of Financial Position Total Equity and Liabilities Equity and liabilities in millions Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2014 Subscribed capital Capital reserves 4, , ,155.6 Retained earnings 8, , ,828.9 Other comprehensive income -1, , ,007.9 Equity attributable to the shareholders of the parent 12, , ,488.6 Non-controlling interests Total equity 12, , ,852.7 Provisions for pension liabilities and similar obligations 3, , ,937.3 Deferred tax liabilities Long-term provisions for other risks and obligations Long-term portion of findebtedness d , , ,040.8 Other long-term financial liabilities Other long-term liabilities Non-current liabilities 7, , ,580.5 Trade accounts payable , , ,882.0 Income tax payables Short-term provisions for other risks and obligations Indebtedness 3, , ,223.0 Other short-term term financial liabilities 1, , ,627.5 Other short-term liabilities 1, ,147.5 Liabilities held for sale Current liabilities 13, , ,235.0 Total equity and liabilities 33, , ,668.2 EDMR Equity and Debt Markets Relations 38

39 5) Fact Sheets Consolidated Statement of Cash Flows January 1 to September 30 Third Quarter in millions Net income 2, , Income tax expense Net interest expense EBIT 3, , , Interest paid Interest received Income tax paid Dividends received Depreciation, amortization, impairment and reversal of impairment losses 1, , Income from at-equity accounted and other investments, incl. impairment and reversal of impairment losses Gains from the disposal of assets, companies and business operations Changes in inventories trade accounts receivable trade accounts payable pension and similar obligations other assets and liabilities Cash flow arising from operating activities 2, , , Cash flow from the disposal of property, plant and equipment, and intangible assets Capital expenditure on property, plant and equipment, and software -1, , Capital expenditure on intangible assets from development projects and miscellaneous Cash flow from the disposal of companies and business operations Acquisition of companies and business operations -1, Cash flow arising from investing activities -2, , , Cash flow before financing activities (free cash flow) Change in indebtedness -1, Successive purchases Dividends paid Dividends paid to and cash changes from equity transactions with non-controlling interests Cash and cash equivalents arising from first consolidation of subsidiaries Cash flow arising from financing activities -1, , Change in cash and cash equivalents -1, Cash and cash equivalents at the beginning of the reporting period 3, , , ,919.4 Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the reporting period 1, , , ,013.2 EDMR Equity and Debt Markets Relations 39

40 5) Fact Sheets 9M 2015 Results Reported and Adjusted (mn ) by Division Chassis & Safety Powertrain Interior Tires ContiTech Cons./Corr. Corporation Sales 5, , , , , , , , , , , ,216.2 EBIT , , , ,195.8 in % of sales 9.2% 9.6% -3.4% 5.3% 8.5% 10.0% 19.4% 20.7% 11.4% 5.4% 9.6% 10.9% Amortization of intangible assets from PPA Total special effects Total consolidation effects Total consolidation & special effects Adjusted operating result (adj. EBIT) , , , ,379.7 in % of adjusted sales 9.6% 9.7% 3.7% 6.0% 10.1% 10.1% 19.7% 21.1% 11.5% 11.1% 11.4% 12.0% 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 40

41 5) Fact Sheets 9M 2015 Results Reported and Adjusted (mn ) by Group Automotive Rubber Cons./Corr. Group Sales 15, , , , , , EBIT , , , , ,195.8 in % of sales 5.1% 8.5% 17.2% 15.5% 9.6% 10.9% Amortization of intangible assets from PPA Total special effects Total consolidation effects Total consolidation & special effects Adjusted operating result (adj. EBIT) 1 1, , , , , ,379.7 in % of adjusted sales 8.0% 8.8% 17.5% 18.3% 11.4% 12.0% 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 41

42 5) Fact Sheets Shareholder Structure Shareholder Structure Shareholder Structure Shareholder Structure Shareholder Structure as at Dec. 31, 2010 as at Dec. 31, 2011 as at Dec. 31, 2012 since Sept. 17, 2013 M.M.Warburg &COKGaA 16.48% B. Metzler seel. Sohn Co. Holding AG 16.48% M.M.Warburg &COKGaA 5.19% B. Metzler seel. Sohn Co. Holding AG 5.19% Schaeffler Group 49.9% Schaeffler Group 46.0% Schaeffler Free Float Schaeffler Group 24.87% Group 42.17% 49.90% Free Float 39.72% Free Float 50.1% Free Float 54.0% Source: Based on publicly available data EDMR Equity and Debt Markets Relations 42

43 5) Fact Sheets Continental s Credit Rating S&P, Fitch / Moody s Standard & Poor s 1 Moody s 2 Fitch 3 BBB+ / Baa1 Investment Grade BBB / Baa2 BBB- / Baa3 BB+ /Ba1 No on-investment Grade BB / Ba2 BB- / Ba3 Before Siemens VDO B+ / B1 B / B Contracted rating since May Non-contracted rating since February 1, Contracted rating since November 2013 EDMR Equity and Debt Markets Relations 43

44 References Useful Links Continental Investor Relations website Annual and interim reports Fact Book Investor Relations events and presentations Sustainability at Continental (presentation and fact sheet for investors) Corporate Social Responsibility Corporate Governance Principles Continental share Continental bonds and rating corporation.com/www/portal_com_en/themes/ir/corporate_governance/ com/www/portal com en/themes/ir/bonds/ Continental IR mobile website EDMR Equity and Debt Markets Relations 44