17 th European CEO Conference Paris June 10, 2015 Ticker: ce CON ADR-Ticker: CTTAY http://www.continental-ir.com Nikolai Setzer Member of the Executive Board Head of Tire Division
AGENDA 1 Growth Opportunities in the Automotive Group 3 2 Value Creation in the Rubber Group 15 3 Outlook 20 4 Long Term Target 22 5 Back-up: Q1 2015 Results 29 EDMR Equity and Debt Markets Relations 2
1) Growth Opportunities in the Automotive Group Tomorrow s Car Requires High Software Content Car Driving Sub-System 1 Boeing 787 2 3 Mars Probe "Curiosity" Comparison of lines of code (USD bn) 180 160 140 120 100 Market for Automotive Software will increase by >60% 80 Drone 4 5 Space Shuttle 60 40 20 0 5 10 15 Lines of code (mn) 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Automotive Software 6 Avionics Software 7 1 Own estimates 2 Boeing 3 http://www.verticalsysadmin.com/making_robust_software/ and NASA 4 http://www.wired.com/2012/11/navy-killer-drone/ and Northrop 5 http://www.nasa.gov/pdf/418878main p _ FSWC _ Final _ Report.pdf p and NASA Source: Strategic Analytics, McKinsey, A.T. Kearny and own estimates 6 Software for electronic control units (Automated driving is not included) 7 Software for flight management systems (Inflight entertainment, seat control etc. not included) EDMR Equity and Debt Markets Relations 3
1) Growth Opportunities in the Automotive Group Increasing Complexity of Today s Cars In total: more than Sensors 0101 1010 0101 1010 0101 1010 0101 1010 0101 1010 up to 0101 1010 more than ECUs Actuators 0101 1010 0101 1010 0101 0101 1010 1010 Sensor Data Link Chassis & Safety Interior Powertrain Logic/ ECU 0101 1010 SW 1 -Modul 0101 Actuator 3 rd Party SW 1 1010 1 Software Growing complexity in all domains and additionally: ECUs interact via bus systems Functions are distributed over several ECUs Different (black-box) SW 1 -Moduls, also from 3 rd parties Vehicle system is connected to the outside world EDMR Equity and Debt Markets Relations 4
1) Growth Opportunities in the Automotive Group Future Trend Automated Driving EDMR Equity and Debt Markets Relations 5
1) Growth Opportunities in the Automotive Group Chassis & Safety ADAS (Advanced Driver Assistance Systems) 2007 2014 2019E 1% 7% 26% 99% PC< 71 mn production worldwide 93% PC< 87mn production worldwide 74% PC< 102 mn production worldwide Installation rate ADAS Marketpotential ADAS Installation rates 82% 90% 99% 94% 99% 18% 10% 1% 6% 1% Europe NAFTA South America Asia Other Markets Installation rate in Europe expected to go up to 75% by 2019 NAFTA follows at slower pace, hitting 25% by 2019 Installation rates in Asia are estimated to growth to 14% by 2019, mainly driven by Japan Source: IHS, Strategy Analytics and own estimates; ADAS w/o parking assist functions based on ultrasonic sensors and sensing rear view cameras. EDMR Equity and Debt Markets Relations 6
1) Growth Opportunities in the Automotive Group Interior Driver HMI Displays (Human Machine Interface) 2007 2014 2019E 74% PC< 71 mn production worldwide 26% 29% 71% PC< 87 mn production worldwide 61% PC< 102 mn production worldwide 39% Installation Rate Displays Market Potential Displays 1 1 Installation rate 52% 56% 91% 81% 80% 48% 44% 9% 19% 20% Europe NAFTA South America Asia Other Markets Legislation will boost sales further Head-Up Displays with smallest overall share, but 3Dnavigation will boost installation rates Clear trend towards larger and increasing number of displays per vehicle 2 Source: IHS and own estimates. 1 Driver HMI Displays include Head Up Displays, Secondary Displays and Integrated EDMR Equity and Debt Markets Relations 7 Center Stacks, excludes Multimedia Displays. 2 Market potential understated as up to five displays are feasible per vehicle.
1) Growth Opportunities in the Automotive Group Agreement to Acquire ElektrobitAutomotive GmbH Continental reached an agreement with Elektrobit Oyj to acquire its Automotive business, Elektrobit Automotive GmbH, including 51% stake in e.solutions (JV with Audi), for a total consideration of 600 mn With the transaction Continental significantly strengthens its electronic components, software and system competence in one of the fastest growing areas of the Auto industry Even more decisively Conti gains speed in software engineering processes as Elektrobit Automotive GmbH will add about 1,900 employees (incl. e.solutions) to the existing 11,000 Continental experts Acquisition will create significant top line synergies by 2020 thanks to software integration and additional component business Transaction will be financed from existing cash balance and credit lines Closing of the transaction subject to approval of Elektrobit s ESM in June 2015 and anti-trust trust approval; closing expected in Q3 2015 Shareholders representing c. 46% of voting rights have already committed to vote for the transaction on an irrevocable basis; simple majority at Elektrobit s ESM needed in order to approve the transaction EDMR Equity and Debt Markets Relations 8
1) Growth Opportunities in the Automotive Group World Market Forecast 1 for Driver Assistance Systems Covered by Conti C&S and Interio or Division Portfolio Further Strengthened by Elektrobit Automotive GmbH Acquisition Selected System Blindspot (BS) Distance Warning (DW) Lane Departure Warnings (LDWS) Parking / Reversing Drowsiness Monitor E-Call Telematics Head-Up Display (HuD) System Definition 2 Covers the blindspot between coverage offered by the central rear view mirror and the door-mounted mirrors Covers all distance warning systems that form the basis of either intelligent cruise control or collision avoidance systems Warns the driver if (s)he may be unintentionally driving out of the desired lane Uses Ultrasonic and Radar Sensors as well as camera based parking aids Warns the driver that (s)he has either fallen asleep, or is in danger of doing so Automatically transmits an emergency call in case of an accident Displays most important driver information in the windshield of the vehicle EBA 3 World Market for Driver Assistance Systems (USD bn) 1 6 12 CAGR 17% 18 2013 2016 2020 Market Acc. Strategy Analytics Products of Continental s Chassis & Safety Division Products of Continental s Interior Division 1 Source: Strategy Analytics, November 2013 2 System as defined by Strategy Analytics 3 Elektrobit Automotive GmbH EDMR Equity and Debt Markets Relations 9
1) Growth Opportunities in the Automotive Group Significant Sales Enhancement through Synergies by 2020 Software integration capabilities will be key in the coming years and will offer new sources for additional revenue: Revenues from software driven component business Integration capabilities for Multimedia and Infotainment solutions Revenues from software integration Software as a stand alone product Efficiency gains by expanding software capabilities by more than 15% Software & hardware integration e.g. camera e.g. radar e.g. laser sensoren Software driven component business Elektrobit Automotive sales Integration of MM and Infotainment solutions 1 Software integration Software as product Total 1 MM = Multimedia EDMR Equity and Debt Markets Relations 10
1) Growth Opportunities in the Automotive Group Powertrain Today s Vehicle Emissions vs. Regulatory Target Emissions by Vehicle Weight Emissions [g CO2/km] 240 220 200 180 160 140 120 100 80 60-25% in 5-6 years (127g 95g) 2015 EU Target 2020/21 EU Target 40 900 1000 1,000 1100 1,100 1200 1,200 1300 1,300 1400 1,400 1500 1,500 1600 1,600 1700 1,700 1800 1,800 1900 1,900 2000 2,000 Weight [kg] GASOLINE HYBRID DIESEL Source: http://www.heise.de/autos/neuwagenkatalog/ as at July 09, 2014. EDMR Equity and Debt Markets Relations 11
1) Growth Opportunities in the Automotive Group Powertrain GDI (Gasoline Direct Injection) 97% 2007 2014 2019E Gasoline engine 53 mn production ww 3% Installation rate GDI Market potential GDI 76% Gasoline engine 69 mn production ww Installation rates 24% 43% 69% 100% 85% 100% 57% 31% 0% 15% 0% 52% Gasoline engine 80 mn production ww 48% Stricter CO 2 emission targets in Europe, USA, Japan and China cause huge demand increase for gasoline direct injection GDI volume expected to grow by 130% until 2019 Europe NAFTA South America Asia Other Markets Source: IHS and own estimates. EDMR Equity and Debt Markets Relations 12
1) Growth Opportunities in the Automotive Group Powertrain Gasoline TC (Turbocharger) 97% 2007 Gasoline engine 53 mn production ww 3% Installation rate TC Market potential TC 83% 2014 2019E Gasoline engine 69 mn production ww Installation rates 17% 45% 93% 100% 89% 100% 65% Gasoline engine 80 mn production ww 35% Market for Gasoline Turbo Chargers will grow from 2 mn in 2007 to more than 27 mn in 2019 55% 7% 0% 11% 0% Europe Source: IHS and own estimates. NAFTA South America Asia Other Markets World's first Turbo Charger with Aluminum Turbine Housing in Cars (water-cooled) Significant weight reduction by nearly 30% while simultaneously providing cost and system benefits EDMR Equity and Debt Markets Relations 13
1) Growth Opportunities in the Automotive Group Powertrain 48V Technology 2014 2019E 2025E 100 % EV/HEV engine 3 mn production ww 0% 72% EV/HEV engine 9 mn production ww 28% 52% EV/HEV engine 26 mn production ww 48% Installation rate 48V Market potential 48V 48-Volt Eco Drive CO 2 reduction CO2 emissio on Start-Stop and voltage regulation + Enhanced Start-Stop function + Recuperation Lower CO 2 emissions and less 1 fuel consumption up to 13% 2 with NEDC and 20% under real 5.4% driving condition 0.6% 7.0% Total CO 2 reduction: 13.0% 2 Due to advanced Start-Stop, recuperation and coasting/sailing functions First start of production (SOP) 2016/2017 1 Continental estimates. 2 Measurement with New European Driving Cycle (NEDC) compared to a VW Golf VI BlueMotion with 4 zyl. 1.2l TSI, 77 kw gasoline engine incl. Stop/Start. EDMR Equity and Debt Markets Relations 14
2) Value Creation in the Rubber Group Tires: A Strong Basis for Sustained Value Creation Success Factors of a Proven Business Model 12.4 13.1 12.9 11.6 11.9 69% 70% 70% 72% 77% 39% 44% 46% 34% 34% 38% 38% 37% 22% 2.2% 20% 2.0% 20% 2.0% 21% 2.1% 22% 2.2% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2012 2014 2010 2011 2012 2013 2014 Centralized R&D with multiple benefits for the worldwide tire organization Average size of PLT tire production plant in Europe >11 mn tires despite higher size mix and Kaluga 1 opening Best cost country share (worldwide) improved over the last 5 years Continuous mix improvement driven by UHP and winter tires = ROCE sustained > 35% despite capacity expansion into BRIC 1 Kaluga was opened in Nov 2013 EDMR Equity and Debt Markets Relations 15
2) Value Creation in the Rubber Group Winner in Summer and Winter Tire Press Tests 1 Top Position in Summer Tires Top Position in Winter Tires 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 (19/24) 2 (31/34) 2 (12/18) 2 Competitor 1 (21/26) 2 (8/13) 2 Competitor 2 (12/24) 2 (11/20) 2 Competitor 3 (15/31) 2 (11/21) 2 Competitor 4 (12/27) 2 (9/20) 2 Competitor 5 (10/32) 2 (8/18) 2 Competitor 6 (6/22) 2 (4/11) 2 Competitor 7 (0/20) 2 1 Status April 2015. Publications of UK, I, F, CZ, SWE, US 2 Percentage of highest Recommendations in Magazine Tests (absolute # highest recommendation/ # test participation ) EDMR Equity and Debt Markets Relations 16
2) Value Creation in the Rubber Group ContiTech and Veyance Technologies Forming a Global Player in Rubber and Plastics Technologies 5.4 54% 46% Non-Automotive Automotive OE Business OE Business 42,000 Increase of sales in other sectors and with end customers Better regional balance of sales About 8,500 new employees, in total more than 42,000 employees Combined sales of around 5.4 bn 1 1 Pro forma and before any disposals EDMR Equity and Debt Markets Relations 17
2) Value Creation in the Rubber Group ContiTech and Veyance at a Glance 2014 Pro Forma Sales ( mn) and Pro Forma Sales by EBITDA margin (%) Business Unit (in %) 5,397 4,072 CAGR 4% 1,466 Fluid Technology 36% Conveyor Belt Group 22% 1,203 3,931 Veyance 2,869 13,5% 14,1% 2006 2014 ContiTech EBITDA margin Elastomer Coatings 2% Air Spring Systems 8% Compounding Technology 5% Vibration Control 6% Benecke- Kaliko Group 9% Power Transmission Group 12% Status: December 31, 2014 before any disposals 1 Average EUR/USD exchange rate 2014: 1.329 EDMR Equity and Debt Markets Relations 18
2) Value Creation in the Rubber Group A Truly Global Player in Rubber and Plastics Technologies Top 10 Non-Tire Rubber Companies 2014 Sales (mn ) 6,000 5,000 4,000 Non-Tire Rubber Sales Veyance Technologies 3,000 2,000 1,000 0 ContiTech & Veyance Bridgestone Diversified Products Freudenberg (Seals and Vibration Control Tech.) Hutchinson Sumitomo Riko Trelleborg AB (excl. wheel business) Cooper Standard Pinafore (Tomkins) NOK (Seal Business) Parker-Hanifin Filtration and Engineered Systems Source: Annual Reports EDMR Equity and Debt Markets Relations 19
3) Outlook Market Outlook for Major Regions 2015 PC & LT 1 Production (mn units) 2014 2015E 45.9 47.5 Commercial Vehicle 2 Prod. (k units) 2014 2015E 1890 1,890 1,858 19.9 1% 20.0 17.0 17.3 3.8 3.4 543 553 542 585 187 168 Europe NAFTA South America Source: IHS and own estimates Asia Europe NAFTA South America Source: IHS and own estimates Asia PC & LT Repl. 3 Tire Market (mn units) 2014 2015E 387 411 320 326 280 274 CV Repl. 4 Tire Market (mn units) 2014 2015E 87.0 88.8 Europe NAFTA South America Source: LMC and own estimates 66 66 22.3 22.3 21.5 22.2 13.6 13.33 0% 0% 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 20
3) Outlook Continental Corporation 2014 2015E Consolidated sales & adj. EBIT 1 margin Automotive Group adj. EBIT 1 Rubber Group adj. EBIT 1 Raw material cost impact Special effects Net interest expense Tax rate Capex PPA Free cash flow before acquisitions 34.5 bn 11.3% 20.9 bn 1.68 bn 13.6 bn 2.31 bn Relief of about 190 mn - 323 mn 265 mn 20% 2.0 bn 194 mn 2.1 bn To increase to > 39 bn Comfortably achieve adj. EBIT 1 margin >10.5% ~ 23.5 bn Adj. EBIT 1 margin >8.5% > 15.5 bn Adj. EBIT 1 margin >15% 150 mn tailwind expected in 2015 About - 100 mn Net interest result ~ 300 mn ~30% Capex at around 6% of sales PPA ~ 125 mn At least 1.5 bn 1 Before amortization of intangibles from PPA, consolidation (2014 in comparison to 2013) and special effects EDMR Equity and Debt Markets Relations 21
4) Long Term Target More than 50 bn in Sales and >20% ROCE by 2020 >50,000 34,506 24,239 11,408 20.0 >20 10.8-1.5 2002 2008 2014 2020 Sales (mn ) ROCE (in %) EDMR Equity and Debt Markets Relations 22
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Disclaimer This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the presentation on the 17 th European CEO Conference on June 10, 2015, in Paris. 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
Contact Equity and Debt Markets Relations Vahrenwalder Str. 9 Klaus Paesler 30165 Hanover Phone: +49 511 938 1316 Germany e-mail: klaus.paesler@conti.de Rolf Woller Sabine Reese Phone: +49 511 938 1068 Phone: +49 511 938 1027 e-mail: rolf.woller@conti.de e-mail: sabine.reese@conti.de Ingrid Kampf Michael Saemann Phone: +49 511 938 1163 Phone: +49 511 938 1307 Fax: +49 511 938 1080 e-mail: michael.saemann@conti.de e-mail: ir@conti.de www.continental-ir.com t i Henry Schniewind i Phone: +49 511 938 1062 e-mail: henry.schniewind@conti.de EDMR Equity and Debt Markets Relations 25
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, 2015 2016 Preliminary figures for the fiscal year 2015 January 2016 Annual Financial Press Conference March 2016 Annual Shareholders Meeting (incl. key data for Q1 2016) April 29, 2016 Q1 Financial Report May 2016 Half Year Financial Report August 2016 Nine Month Financial Report November 2016 EDMR Equity and Debt Markets Relations 26
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) 543 900 ISIN Number DE0005439004 Shares outstanding as at March 31, 2015 200,005,983 ADR Data Ratio (ordinary share: ADR) 1:5 Bloomberg Ticker Reuters Ticker ISIN Number CTTAY CTTAY.PK ADR Level Level 1 Exchange Sponsor US2107712000 OTC Deutsche Bank Trust Company Americas EDMR Equity and Debt Markets Relations 27
Continental Bond Data Issuer Conti-Gummi Finance B.V., Netherlands 1 Continental AG Continental Rubber of America, Corp., USA 1 Continental AG Issue Senior Notes Senior Notes Senior Notes Senior Notes Principal amount 750 mn 750 mn $950 mn 750 mn Offering price 99.595% 98.950% 100.000% 99.228% Rating at issuance date Ba1 (Moody s 4 ) Ba2 (Moody s 4 ) Ba3 (Moody s 4 ) Ba1 (Moody s 4 ) BB (S&P) BB (S&P) BB- (S&P) BB (S&P) BBB (Fitch 2 ) BB (Fitch 2 ) BB (Fitch 2 ) BBB (Fitch 2 ) Current corporation and bond rating 3 BBB (Fitch), BBB (S&P), Baa3 (Moody s 4 ) Coupon 2.5% p.a. 3.0% p.a. 4.5% p.a. 3.125% p.a. Issue date Sept. 19, 2013 Jul. 16, 2013 Sept. 24, 2012 Sept. 9, 2013 Maturity Mar. 20, 2017 Jul. 16, 2018 Sept. 15, 2019 Sept. 9, 2020 Start of period for early redemption (60-90 days prior notice) --- --- Sept. 15, 2015 --- Interest payment Annual Mar. 20 Semi annual Jan. 16/Jul. 16 Semi annual Mar. 15/Sept. 15 Annual Sept. 9 WKN A1VC6B A1X24V A1G9JJ A1X3B7 ISIN XS0972719412 XS0953199634 DE000A1G9JJ0 XS0969344083 Denomination 1,000 with min. tradable 1,000 with min. tradable $1,000 with min. tradable 1,000 with min. tradable amount 1,000 amount 1,000 amount $150,000 amount 1,000 1 2 3 4 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 Sept. 19, 2013 Non-contracted rating since Feb. 1, 2014 EDMR Equity and Debt Markets Relations 28
Back-up EDMR Equity and Debt Markets Relations 29
Q1 2015 Results Hanover May 7, 2015 Ticker: ce CON ADR-Ticker: CTTAY http://www.continental-ir.com
AGENDA 1 Corporation Highlights 32 2 Automotive Group 39 3 Rubber Group 41 4 Indebtedness and Cash Flow 46 5 Outlook 2015 49 6 Back-up Q1 2015 & Fact Sheets 2013-2015 52 EDMR Equity and Debt Markets Relations 31
1) Corporation Highlights Most Important KPIs Q1 2015 Sales up by 14% to 9.6 bn; organic sales growth in Q1 2015 at 3% Adj. EBIT 1 up by 10% to 1.05 bn; adj. EBIT 1 margin at 11.4% (PPA and special effects - 32 mn) NIAT 2 up by 12% to 657 mn Free cash flow amounted to - 271 mn including 589mn cash out for acquisitions (mainly Veyance); free cash flow before acquisitions amounted to 318 mn Net indebtedness up to 4.1 bn; gearing ratio at 34%; equity ratio at 36% Value creation: trailing ROCE 3 down by 50 bps to 19.5% mainly due to first time consolidation of Veyance Technologies Other topics: Successful extension of revolving credit facility until April 2020 Adj. EBIT 1 margin in Powertrain at 8.1% before losses in HEV unit Veyance Technologies contributed t 224 mn to sales and - 62 mn to EBIT in Q1 2015 1 Before amortization of intangibles from PPA, consolidation and special effects 2 Attributable to the shareholders of the parent 3 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets (AOA) for the LTM EDMR Equity and Debt Markets Relations 32
1) Corporation Highlights Divisional Highlights Q1 2015 Autom motive Gro oup Rub bber Gro oup Chassis & Safety: 10.1% adj. EBIT 1 margin (PY: 9.5%); organic sales up by 5%; product sales in ADAS increased by 46%; operating leverage 2 at 14% in Q1 2015 Powertrain: 5.8% adj. EBIT 1 margin (PY: 5.3%); organic sales increased by 4%; adj. EBIT 1 margin before HEV was at 8.1% in Q1 2015 Interior: 9.7% adj. EBIT 1 margin (PY 9.6%); organic sales increased by 8%; adj. EBIT 1 margin increased despite an increase in R&D expenses of 24% in Q1 2015 Automotive Group: Organic sales increased by 6%, outgrowing worldwide car production by 5%-points; adj. EBIT 1 margin increased by 40 bps to 8.7%; operating leverage 2 at 11%; R&D expenses increased by 19% in Q1 2015 Tires: Adj. EBIT 1 margin sustained at high level of 19.2% (PY 19.1%), benefitting from lower raw material costs (Q1 2015: ~ 70 mn), strict cost management and solid price mix (-2% in Q1 2015); volumes in line with market development (down by 1%) in Q1 2015; FX did impact sales in Q1 2015 with +6% Tire markets: PC & LT tire replacement demand still soft in Europe (-1% in Q1 2015) and impacted by the introduction of import duties in NAFTA where unit sales decreased by 6% in Q1 2015 ContiTech: Adj. EBIT 1 margin down by 30 bps to 11.6%; organic sales up by 2%; Veyance Technologies contributed 224 mn to sales and - 62 mn to EBIT in Q1 2015 Rubber Group: Organic sales down by 1%; adj. EBIT 1 margin stayed at 17.0% (PY: 17.0%) 1 Before amortization of intangibles from PPA, consolidation and special effects 2 Operating leverage is defined as delta adj. EBIT 1 divided by delta sales EDMR Equity and Debt Markets Relations 33
1) Corporation Highlights Sales and Adjusted EBIT 1 by Quarter FY Sales 33,331 mn FY Sales 34,506 mn Q1 Sales 9,569 mn Adj. EBIT 1 1,054 mn 9,569 8,033 8,541 8,350 8,407 8,390 955 8918 8,918 8,528 8,670 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 34
1) Corporation Highlights 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 5,176 5,162 5,442 5,912 3,132 3,392 3,415 3,417 3,271 3,362 3,518 3,487 3,669 426 509 557 579 Q1/13 Q2/13 Q3/133 Q4/13 Q1/14 Q2/14 Q3/14 Q4/144 Q1/15 Q2/15 Q3/15 Q4/15 Q1/1 Q2/1 Q3/1 Q4/1 Q1/1 Q2/1 Q3/1 Q4/1 Q1/1 Q2/1 Q3/1 Q4/1 3 3 3 3 4 4 4 4 5 5 5 5 1 Before amortization of intangibles from PPA, consolidation and special effects EDMR Equity and Debt Markets Relations 35
1) Corporation Highlights Growth Profile of the Corporation Q1 2015 Conti Automotive Group organic sales growth PC & LT prod. growth ww 1% 6% Con nti M ContiTech organic sales growth PC & LT prod. growth Europe 2% 1% Co nti M PC & LT prod. growth EU/NAFTA 1% arket GDP growth 1 Eurozone 2015 1.5% arket 1 According to IMF (WEO Update April 2015) Passenger & Light Truck Tires volume growth Replacement tire volume growth Europe Replacement tire volume growth NAFTA -6% -1% -1% Con ti Ma arket Commercial Vehicle Tires volume growth Replacement tire volume growth Europe Replacement tire volume growth NAFTA -7% -3% 3% Con ti Ma arket EDMR Equity and Debt Markets Relations 36
1) Corporation Highlights Sustainable Value Creation 18.5% 18.6% 19.4% 19.4% 20.6% 20.8% 19.3% 20.0% 19.5% 17 7,014 17 7,008 16 6,915 16 6,804 16 6,625 16 6,522 16 6,536 16 6,727 17 7,510 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 trailing OA (mn ) trailing ROCE (%) 1 Trailing operating assets are calculated as assets for the last twelve months (LTM) 1 2 2 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets EDMR Equity and Debt Markets Relations 37
1) Corporation Highlights Maturities for Syndicated Loan and Bonds 1 (mn ) As at March 31, 2015 (mn ) FY 14 Q1 15 Gross indebtedness 6,432 6,926 Syndicated Loan Bonds Cash 3,244 2,372 Net indebtedness 2,824 4,099 Available credit lines 4,032 4,289 Total liquidity idit 7,276 6,662662 1,500 279 750 750 885 750 3 1 2 3 2015 2016 2017 2018 2019 2020 All amounts shown are nominal values Any utilization under the Revolving Credit Facility (RCF) has to be shown as short term debt according to IFRS although the RCF matures in 2019 and has a total volume of 3,000 mn; extension of revolving credit facility until April 2020 was negotiated in April 2015 Nominal amount US-$950 mn (exchange rate as at March 31, 2015: 1.0739) not reflecting the possibility of an early redemption EDMR Equity and Debt Markets Relations 38
2) Automotive Group Adj. EBIT 1 Margin up by 40 bps Automotive Group Sales (mn ) Q1 2015 Automotive Group Adj. EBIT 1 (mn ) Q1 2015 2,136 1,827 3.7% 1,975 7.7% - 26 5,912 5.7% 215 102 5.8% 191 1 509 9.7% 8.7% 54% 5.4% Organic sales growth (%) 10.1% 1 Adj. EBIT margin (%) Chassis Powertrain Interior cons. Automotive & Safety Group Reported change in sales Chassis & Safety: 13.7% Powertrain: 15.7% Interior: 16.2% Automotive Group: 15.3% Chassis & Safety Powertrain Interior cons. Automotive Group Reported EBITDA: 727 mn (12.3% of sales) Reported EBIT: 503 mn (8.5% of sales) R&D: 557 mn (9.4% of sales) Capex: 205 mn (3.5% of sales) 1 Before amortization of intangibles from PPA, consolidation and special effects EDMR Equity and Debt Markets Relations 39
2) Automotive Group Q1 2015: Benefitting from Solid Organic Growth Automotive Group Sales (mn ) 5,129 5,176 5,162 5,442 5,912 Adj. EBIT 1 (mn ) and Adj. EBIT 1 Margin 509 426 8.3% 8.7% +783 +83 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Sales increased by 783 mn in Q1 2015; organic sales growth in Q1 2015 at 5.7% Adj. EBIT 1 increased by 83 mn Adj. EBIT 1 margin at 8.7% (PY: 8.3%) Operating leverage 2 was impacted by FX and came in at 11% 1 Before amortization of intangibles from PPA, consolidation and special effects 2 Operating leverage is defined as delta adj. EBIT 1 divided by delta sales EDMR Equity and Debt Markets Relations 40
3) Rubber Group Profitability Sustained at Elevated Level Rubber Group Sales (mn ) Q1 2015 Rubber Group Adj. EBIT 1 (mn ) Q1 2015 2,420-19 3,669-2.8% -1.2% 459 579 0 19.2% 17.0% 1,268 2.3% 120 Organic sales growth (%) 11.6% 1 Adj. EBIT margin (%) ContiTech Tires cons. Rubber Group Reported change in sales ContiTech: 30.3% Tires: 4.4% Rubber Group: 12.2% ContiTech Tires cons. Rubber Group Reported EBITDA: 709 mn (19.3% of sales) Reported EBIT: 509 mn (13.9% of sales) R&D: 86 mn (2.3% of sales) Capex: 152 mn (4.1% of sales) 1 Before amortization of intangibles from PPA, consolidation and special effects EDMR Equity and Debt Markets Relations 41
3) Rubber Group Adjusted EBIT 1 Margin Impacted by Consolidation of Veyance Rubber Group Sales (mn ) 3,271 3,362 3,518 3,487 3,669 Adj. EBIT 1 (mn ) and Adj. EBIT 1 Margin 557 579 17.0% 17.0% +398 +22 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Sales increased by 398 mn in Q1 2015 primarily as a result of consolidation effects (Veyance Technologies contributed 224 mn to sales) Tire volumes decreased by 1% during the quarter mainly due to weak replacement markets in Europe; FX had a positive effect of more than 5% on tire sales in Q1 2015 while P/M was slightly negative Sales at ContiTech without Veyance amounted to 1,044 mn and EBIT to 117 mn Adj. EBIT 1 up by 22 mn in Q1 2015 1 Before amortization of intangibles from PPA, consolidation and special effects EDMR Equity and Debt Markets Relations 42
3) Rubber Group ContiTech: Forming a Global Player in Rubber and Plastics Technology 2015 Closing on January 30, 2015 PPA on intangibles amounts to 721 mn and will be amortized over 11 years, amounting to approximately 100 mn in the first five years; goodwill totaled 279 mn Veyance will add about 1.8 bn to operating assets Sales (Feb-March) in Q1 2015 came in at 224 mn and EBIT amounted to - 62 mn; PPA amortization amounted to 26 mn; in addition Q1 2015 included 37 mn of integration cost (more than three quarters of total amount expected for 2015) EBIT before PPA and special effects to normalize in coming quarters and will meet ~8% target Mid-term targets confirmed: ContiTechʼsʼ EBIT margin to be restored to 12% ContiTechʼs ROCE will improve to 25% EDMR Equity and Debt Markets Relations 43
3) Rubber Group European Demand Soft while Import Duties Weighed on NAFTA Replacement Tire Demand Replacement Tire Demand Development for PC & LT Europe Development for PC & LT NAFTA 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 PC & LT Tire Replacement (YOY chg. monthly) Oct-14 Jan-15 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Jan n-11 Ap r-11 Ju ul-11 Oc ct-11 Jan n-12 Ap r-12 Ju ul-12 Oc ct-12 Jan n-13 Ap r-13 Ju ul-13 Oc ct-13 Jan n-14 Ap r-14 Ju ul-14 PC & LT Tire Replacement (YOY chg. monthly) 1 Vehicle miles YOY chg. monthly (DOT) 1 U.S. Department of Transportation Oc ct-14 Jan n-15 EDMR Equity and Debt Markets Relations 44
3) Rubber Group Expected Raw Material Price Development in 2015 Natural rubber price (TSR 20) expected to average U.S. $1.62 in 2015 (before: U.S. $1.75) Synthetic rubber price (butadiene feedstock) forecasted to average U.S. $0.95 in 2015 Tailwind from lower raw material cost tis expected dto amount tto 150 mn in 2015 600 500 400 300 200 Raw Material Price Development 1 2010-2015E (U.S. cents/kg) Average (Y) Average (Y) Average (Y) Average (Y) Average (Y) Average (Y) TSR 20: 1345 TSR 20: 463 TSR 1 20: 326 TSR 20: 259 1 TSR 20: 181 TSR 1 20: 162 Butadiene: 191 Butadiene: 297 Butadiene: 244 Butadiene: 148 Butadiene: 132 Butadiene: 95 153 149 165 180 100 0 74 93 105 110 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 Q2/15E Q3/15E Q4/15E TSR 20 (U.S. cents/kg) Butadiene (U.S. cents/kg) 1 Source: Bloomberg and Continental estimates for 2015 EDMR Equity and Debt Markets Relations 45
4) Indebtedness and Cash Flow Net Indebtedness Bridge (mn ) 855 181 1,622 505 425 2,824 374 532 mn outflow from change in working capital 827 4,099 Gearing Ratio 26% 34% Net indeb btedness (FY 2014) Capex Acq uisitions Ch hange in rec eivables Ch hange in inv ventories Ch hange in pa ayables Dep pr. and amo ortization Other CF Net indeb btedness (Q1 2015) 1 2 1 According to cash flow statement incl. intangible assets 2 Veyance Technologies og es and A-Z Formen- und Maschinenbau Group EDMR Equity and Debt Markets Relations 46
4) Indebtedness and Cash Flow Net Indebtedness and Gearing Ratio Net indebtedness (mn ) Gearing ratio 64% 69% 62% 46% 43% 42% 36% 34% 26% 5, 6, 5, 4, 4, 4, 3, 2, 4, 613 012 590 289 242 273 926 824 099 Q1 H1 9M YE Q1 H1 9M YE Q1 2013 2014 2015 EDMR Equity and Debt Markets Relations 47
4) Indebtedness and Cash Flow Cash Flow Overview Cash Flow Q1 2014 and Q1 2015 (mn ) 2014 2015 2015 before acquisitions 419 684 684 64 318-355 -271-366 -955 CF from operating activities CF used for investing activities Free cash flow EDMR Equity and Debt Markets Relations 48
5) Outlook PC & LT Production by Quarter Europe (mn units) NAFTA (mn units) 5.212 4.943 4.280 4.607 4.767 5.071 4.484 4.896 5.174 5.269 4.492 4.931 5.210 5.220 4.650 4.930 2 4.237 4.298 4.490 4.320 4.220 428% 3.964 3.986 3.667 3.817 4.015 4.258 3.883 4.021 4.204 4.41 4.177-1% -6% -5% -6% -9% 3% 5% 6% 9% 2012: 19.0 2013: 19.2 2014: 19.9 4% 4% 0% 1% 1% -1% 2015E: 20.0 0% 17% 15% 11% 7% 8% 6% 5% 5% 5% 4% 3% 2% 1% 2% 2012: 15.4 2013: 16.2 2014: 17.0 2015E: 17.3 0% Q1 /12 Q2/12 Q3/12 Q4/12 Q1 /13 Q2/13 Q3/13 Q4/13 Q1 /14 Q2/14 Q3/14 Q4/14 Q1/15E Q2/15E Q3/15E Q4/15E Q1 /12 Q2/12 Q3/12 Q4/12 Q1 /13 Q2/13 Q3/13 Q4/13 Q1 /14 Q2/14 Q3/14 Q4/14 Q1/15E Q2/15E Q3/15E Q4/15E Europe chg YOY NAFTA chg YOY Source: IHS and own estimates, Europe excluding Kazakhstan and Uzbekistan EDMR Equity and Debt Markets Relations 49
5) Outlook 2015 Market Outlook for Major Regions 2015 PC & LT 1 Production (mn units) 2014 2015E 45.9 47.5 Commercial Vehicle 2 Prod. (k units) 2014 2015E 1890 1,890 1,858 19.9 1% 20.0 17.0 17.3 3.8 3.4 543 553 542 585 187 168 Europe NAFTA South America Source: IHS and own estimates Asia Europe NAFTA South America Source: IHS and own estimates Asia PC & LT Repl. 3 Tire Market (mn units) 2014 2015E 387 411 320 326 280 274 CV Repl. 4 Tire Market (mn units) 2014 2015E 87.0 88.8 Europe NAFTA South America Source: LMC and own estimates 66 66 22.3 22.3 21.5 22.2 13.6 13.33 0% 0% 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 50
5) Outlook 2015 Continental Corporation 2014 2015E Consolidated sales & adj. EBIT 1 margin Automotive Group adj. EBIT 1 Rubber Group adj. EBIT 1 Raw material cost impact Special effects Net interest expense Tax rate Capex PPA Free cash flow before acquisitions 34.5 bn 11.3% 20.9 bn 1.68 bn 13.6 bn 2.31 bn Relief of about 190 mn - 323 mn 265 mn 20% 2.0 bn 194 mn 2.1 bn To increase to > 39 bn Comfortably achieve adj. EBIT 1 margin >10.5% ~ 23.5 bn Adj. EBIT 1 margin >8.5% > 15.5 bn Adj. EBIT 1 margin >15% 150 mn tailwind expected in 2015 About - 100 mn Net interest result ~ 300 mn ~30% Capex at around 6% of sales PPA ~ 125 mn At least 1.5 bn 1 Before amortization of intangibles from PPA, consolidation (2014 in comparison to 2013) and special effects EDMR Equity and Debt Markets Relations 51
Back-up Q1 2015 EDMR Equity and Debt Markets Relations 52
6) Back-up Overview of Volume Development Units (YOY change) Q1/13 H1/13 9M/13 FY 13 Q1/14 H1/14 9M/14 FY 14 Q1/15 Market data for PC & LT production EU -9% -3% -1% 1% 9% 6% 4% 3% 1% NAFTA 1% 4% 5% 5% 5% 4% 5% 5% 2% EU and NAFTA combined -4% 0% 2% 3% 7% 5% 5% 4% 1% Worldwide 0% 2% 3% 4% 5% 4% 4% 3% -42% Continental Electronic stability control (ESC) 13% 14% 15% 15% 14% 12% 11% 12% 16% Anti locking brake (ABS) -24% -24% -21% -19% -13% -11% -16% -19% -34% Boosters -4% -2% 0% 0% 8% 10% 6% 5% -1% Calipers 2% 7% 7% 6% 7% 2% 1% 0% -1% Advanced driver assistance systems (ADAS) 51% 57% 57% 58% 53% 50% 47% 47% 46% Engine electronic control units (ECUs) -11% -8% -4% -1% 7% 6% 6% 4% -1% Ij Injectors -10% -7% -3% -1% -3% -3% -5% -5% -8% Transmissions 4% 7% 10% 12% 8% 8% 6% 6% 6% Turbochargers 296% 207% 179% 108% 64% 68% 71% 78% 59% Market data tires PC & LT replacement tires Europe -10% -4% -1% -1% 6% 5% 4% 2% -1% PC & LT replacement tires NAFTA -2% 0% 4% 4% 7% 6% 5% 6% -6% Commercial vehicle tires OE Europe -3% 0% 0% 0% 1% -7% -4% -7% 0% Commercial vehicle tires OE NAFTA -12% -13% -9% -2% 6% 10% 12% 12% 21% Commercial vehicle replacement tires Europe 5% 8% 9% 9% 15% 6% 3% 1% -7% Commercial vehicle replacement tires NAFTA -1% -2% -2% -2% 9% 9% 9% 8% 3% Continental PC & LT tires -6% -1% 1% 2% 9% 6% 5% 3% -1% Commercial vehicle tires -4% 2% 5% 6% 13% 8% 5% 3% -3% ContiTech organic sales growth -2% 0% 0% 2% 5% 2% 2% 1% 2% EDMR Equity and Debt Markets Relations 53
6) Back-up Corporation Highlights Q1 2015 Sales Increase of 14.0% to 9,568.9 mn (PY: 8,390.1 mn); organic sales up 3.0% EBITDA Increase of 8.3% to 1,403.2 mn (PY: 1,295.8 mn) EBIT Increase to 977.9 mn (PY: 903.2 mn) Adj. EBIT 1 increase to 1,053.9 mn (11.4% adj. EBIT 1 margin) PPA 2 effect - 32.1 mn; total special effects - 0.2 mn NIAT 3 EPS 3 Increase to 656.7 mn (PY: 588.3 mn) EPS of 3.28 (PY: 2.94) EPS before PPA 2 3.40 (PY: 3.12 before PPA 2 ) Capex R&D Cash flow Capex increased to 356.8 mn (PY: 340.9 mn); capex ratio 3.7% of sales; Capex to depreciation coverage 0.8x (0.9x ex PPA 2 ) Expenses for research and development increased by 18.2% to 643.0 mn (PY: 544.1 mn); R&D ratio 6.7% of sales (PY: 6.5%) Operating cash flow up by 264.8 mn to 683.6 mn; free cash flow - 271.3 mn Net debt Net indebtedness d up by 1,275.2 2 mn to 4,098.7 mn vs. FY 2014; Liquidity and undrawn credit lines amounted to 6,661.6 mn 1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA, tax rate of 28% applied for EPS calculation 3 Attributable to the shareholders of the parent EDMR Equity and Debt Markets Relations 54
6) Back-up Key Historical Credit Metrics IAS 19 (rev. 2011) applied 6 (mn ) 1 2010 2011 2012 2013 2014 LTM Q1 2015 Cash flow statement Adjusted EBITDA 2 3,662 4,247 4,822 5,094 5,318 5,427 Reported EBITDA 3,588 4,228 4,967 5,095 5,134 5,241 Net cash interest paid -703-662 -575-534 -158-167 Tax paid -493-466 -684-805 -775-866 Change in net working capital 3-497 -556 564-4 -207 112 Other 4-46 -256-488 -30 175 113 Cash flow arising from operating activities 1,849 2,289 3,785 3,722 4,168 4,433 Cash flow arising from investing activities -1,282-1,798-2,132-1,904-2,153-2,753 - thereof capex in PPE and intangibles -1,324-1,813-2,081-2,024-2,110-2,129 Cash flow before financing activities 567 491 1,653 1,818 2,015 1,680 Balance sheet Cash and cash equivalents 1,471 1,541 2,397 2,045 3,244 2,372 Derivative instruments and interest-bearing investments 202 249 536 303 364 455 Total indebtedness 8,991 8,562 8,253 6,638 6,432 6,926 Net indebtedness 7,317 6,772 5,320 4289 4,289 2824 2,824 4,099 Credit ratios Net indebtedness / adj. EBITDA 2 2.0x 1.6x 1.1x 0.8x 0.5x 0.8x Net cash interest paid coverage (Ratio) 5 5.2x 6.4x 8.4x 9.5x 33.7x 32.5x 1 Amounts shown may contain rounding differences 2 Adjusted EBITDA starting 2009 as defined in syndicated loan but IAS 19 (rev. 2011) not applied in 2012 3 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, incl. impairments, gains and losses from disposals, other non-cash items as well as changes in pension and similar obligations (including effects from transactions regarding contractual trust arrangements [CTA] in 2009) and in other assets and liabilities 5 Adj. EBITDA to net cash interest paid 6 Since 2012 EDMR Equity and Debt Markets Relations 55
6) Back-up Capex and Depreciation and EPS Breakdown Q1 2015 Capex, Depreciation & PPA 1 (mn ) EPS ex PPA 1,2 ( ) 431 3.28 0.12 3.40 54% 5.4% 325 341 357 393 4.1% 342 3.7% 97 51 32 2013 2014 2015 Capex (PPE), percentage of sales Depreciation, w/o PPA 1 PPA 1 Amortization of intangibles from PPA 2 Assuming corporate tax rate of 28% 1 1 2 Reported deps PPA after tax EPS ex 1,2 per share PPA EDMR Equity and Debt Markets Relations 56
6) Back-up Automotive Group Financials Chassis & Safety Sales increased by 5.4% before consolidation and FX effects Chassis & Safety Q1 2015 1 Sales (mn ) EBITDA margin Adj. EBIT margin EBITDA increased by 43.3 mn to 297.3 mn (+17.0%) Adj. EBIT 1 increased by 36.1 mn to 215.2 mn (adj. EBIT 1 margin 10.1%) 1,792.9 1,878.2 2,136.0 EBIT increased by 42.6 mn to 214.9 mn (EBIT margin 10.1%) PPA effect in Q1 2015: - 0.3 mn No special effects in Q1 2015 13.5% 13.5% 13.9% 9.5% 10.1% 2013 2014 2015 1 Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details EDMR Equity and Debt Markets Relations 57
6) Back-up Automotive Group Financials Powertrain Sales increased by 3.7% before consolidation and FX effects Powertrain Q1 2015 1 Sales (mn ) EBITDA margin Adj. EBIT margin EBITDA increased by 20.2 mn to 177.2 mn (+12.9%) Adj. EBIT 1 increased by 18.5 mn to 102.2 mn (adj. EBIT 1 margin 5.8%) 1,526.1 1,579.1 1,826.5 EBIT increased by 32.2 2 mn to 10.4% 99% 9.9% 9.7% 96.7 mn (EBIT margin 5.3%) PPA effect in Q1 2015: - 2.1 mn No special effects in Q1 2015 53% 5.3% 58% 5.8% 1 Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details 2013 2014 2015 EDMR Equity and Debt Markets Relations 58
6) Back-up Automotive Group Financials Interior Sales increased by 7.7% before consolidation and FX effects Interior Q1 2015 1 Sales (mn ) EBITDA margin Adj. EBIT margin EBITDA increased by 29.7 mn to 252.9 mn (+13.3%) Adj. EBIT 1 increased by 28.6 mn to 191.3 mn (adj. EBIT 1 margin 9.7%) 1,620.1 1,699.1 1,975.2 EBIT increased by 53.1 mn to 190.9 mn (EBIT margin 9.7%) PPA effect in Q1 2015: - 0.4 mn No special effects in Q1 2015 12.5% 13.1% 12.8% 9.6% 9.7% 1 Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details 2013 2014 2015 EDMR Equity and Debt Markets Relations 59
6) Back-up Rubber Group Financials Tires Sales decreased by 2.8% before consolidation and FX effects Tires Q1 2015 1 Sales (mn ) EBITDA margin Adj. EBIT margin EBITDA increased by 34.3 mn to 579.7 mn (+6.3%) 2,222.2 2,318.3 2,419.8 Adj. EBIT 1 increased by 18.2 mn to 459.2 mn (adj. EBIT 1 margin 19.2%) EBIT increased by 13.3 3 mn to 20.7% 454.0 mn (EBIT margin 18.8%) Special effects in Q1 2015: + 0.1 mn 23.5% 24.0% 19.1% 19.2% 2013 2014 2015 1 Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details EDMR Equity and Debt Markets Relations 60
6) Back-up Tires Commercial Vehicle Tire Demand 30% Replacement Tire Demand for Truck Tires Europe 30% Replacement Tire Demand for Truck Tires NAFTA 20% 20% 10% 10% 0% 0% -10% -10% -20% -20% -30% Jan-11 J Apr-11 A Jul-11 Oct-11 Jan-12 J Apr-12 A Jul-12 Oct-12 Jan-13 J Apr-13 A Jul-13 Oct-13 Jan-14 J Apr-14 A Jul-14 Oct-14 Truck tire replacement (YOY chg. monthly) km BAG 1 monthly (adj.) Jan-15 J -30% Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Truck tire replacement (YOY chg. monthly) 2 ATA monthly (adj.) Oct-14 Jan-15 1 BAG = Bundesamt für Güterverkehr 2 ATA = American Trucking Association (miles traveled) EDMR Equity and Debt Markets Relations 61
6) Back-up Rubber Group Financials ContiTech Sales increased by 2.3% before consolidation and FX effects EBITDA decreased by 14.5 mn to 129.2 mn (-4.6%) Adj. EBIT 1 increased by 3.7 mn to 119.5 mn (adj. EBIT 1 margin 11.6%) EBIT decreased by 60.6 6 mn to 54.9 mn (EBIT margin 4.3%) PPA effect in Q1 2015: - 27.6 mn Special effects in Q1 2015: - 0.3 mn ContiTech Q1 2015 1 Sales (mn ) EBITDA margin Adj. EBIT margin 1,268.3 941.6 973.4 14.4% 14.8% 11.9% 11.6% 10.2% 1 Before amortization of intangibles from PPA, consolidation and special effects. Refer to Fact Sheets for further details 2013 2014 2015 EDMR Equity and Debt Markets Relations 62
Fact Sheets 2013 2015 EDMR Equity and Debt Markets Relations 63
6) Fact Sheets Quarterly Sales Analysis Sales (mn ) 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 1,792.9 1,860.8 1,800.1 1,815.4 7,269.2 1,878.2 1,868.5 1,823.4 1,944.8 7,514.9 2,136.0 Powertrain 1,526.1 1 1,606.5 1,561.3 1,566.4 6,260.3 1,579.1 1 1,598.4 1,638.9 1,677.9 6,494.3 1,826.5 Interior 1,620.1 1,723.3 1,612.5 1,649.8 6,605.7 1,699.1 1,733.9 1,725.4 1,844.1 7,002.5 1,975.2 Tires 2,222.2 2,419.0 2,478.2 2,463.8 9,583.2 2,318.3 2,405.9 2,557.8 2,502.4 9,784.4 2,419.8 ContiTech 941.6 998.7 961.9 976.1 3,878.3 973.4 978.6 979.6 999.6 3,931.2 1,268.3 Other / Consolidation -69.6-67.3-64.4-64.4-265.7-58.0-57.3-55.6-50.7-221.6-56.9 Continental Corporation 8,033.3 8,541.0 8,349.6 8,407.1 33,331.0 8,390.1 8,528.0 8,669.5 8,918.1 34,505.7 9,568.9 Changes Y-o-Y in % 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 4.8 0.4 1.3 7.1 3.4 13.7 Powertrain 3.5-0.5 5.0 7.1 3.7 15.7 Interior 4.9 0.6 7.0 11.8 6.0 16.2 Tires 4.3-0.5 3.2 1.6 2.1 4.4 ContiTech 3.4-2.0 1.8 2.4 1.4 30.3 Continental Corporation 4.4-0.2 3.8 6.1 3.5 14.0 EDMR Equity and Debt Markets Relations 64
6) Fact Sheets Quarterly EBITDA Analysis EBITDA (mn ) 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 241.8 250.3 245.8 252.3 990.2 254.0 242.0 262.0 260.1 1,018.1 297.3 Powertrain 158.9 168.5 160.7 162.11 650.2 157.0 125.3-11.9 172.9 443.33 177.2 Interior 202.1 220.1 214.5 213.5 850.2 223.2 244.5 229.7 248.9 946.3 252.9 Tires 459.2 533.2 590.9 554.4 2,137.7 545.4 591.9 603.5 540.0 2,280.8 579.7 ContiTech 135.9 157.5 139.7 143.2 576.3 143.7 132.9 144.7 130.5 551.8 129.2 Other / Consolidation -28.5-19.7-29.1-32.3-109.6-27.5-26.6-24.7-27.7-106.5-33.1 Continental Corporation 1,169.4 1,309.9 1,322.5 1,293.2 5,095.0 1,295.8 1,310.0 1,203.3 1,324.7 5,133.8 1,403.2 EBITDA margin in % 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 13.5 13.5 13.7 13.9 13.6 13.5 13.0 14.4 13.4 13.5 13.9 Powertrain 10.4 10.5 10.3 10.3 10.4 9.9 7.8-0.7 10.3 6.8 9.7 Interior 12.5 12.8 13.3 12.9 12.9 13.1 14.1 13.3 13.5 13.5 12.8 Tires 20.7 22.0 23.8 22.5 22.3 23.5 24.6 23.6 21.6 23.3 24.0 ContiTech 14.44 15.8 14.5 14.7 14.9 14.8 13.6 14.8 13.11 14.0 10.2 Continental Corporation 14.6 15.3 15.8 15.4 15.3 15.4 15.4 13.9 14.9 14.9 14.7 Changes Y-o-Y in % 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 5.0-3.3 6.6 3.1 2.8 17.0 Powertrain -1.2-25.6-107.4 6.7-31.8 12.9 Interior 10.4 11.1 7.1 16.6 11.3 13.3 Tires 18.8 11.0 2.1-2.6 6.7 6.3 ContiTech 5.7-15.6 3.6-8.9-4.3-10.1 Continental Corporation 10.8 0.0-9.0 2.4 0.8 8.3 EDMR Equity and Debt Markets Relations 65
6) Fact Sheets Quarterly Analysis of Adjusted EBIT 1 Adjusted EBIT 1 (mn ) 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 179.1 215.2 Powertrain 83.7 102.2 Interior 162.7 191.3 Tires 441.0 459.2 ContiTech 115.8 119.5 Other / Consolidation -27.6-33.5 Continental Corporation 954.7 1,053.9 Adjusted EBIT 1 margin in % 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 9.5 10.1 Powertrain 5.3 5.8 Interior 9.6 9.7 Tires 19.1 19.2 ContiTech 11.9 11.6 Continental Corporation 11.4 11.4 Changes Y-o-Y in % 2015 Q1 Q2 Q3 Q4 FY C&S 20.2 Powertrain 22.1 It Interior 17.6 Tires 4.1 ContiTech 3.2 Continental Corporation 10.4 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 66
6) Fact Sheets Quarterly EBIT Analysis EBIT (mn ) 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 155.3 162.7 155.1 125.8 598.9 172.3 159.3 179.5 169.1 680.2 214.9 Powertrain 52.1 58.3 49.5 19.6 179.5 64.5 32.9-263.3 3 69.1-96.8 96.7 Interior 95.7 112.5 104.4 68.0 380.6 137.8 154.7 144.8 168.6 605.9 190.9 Tires 365.2 440.3 494.6 452.6 1,752.7 440.7 482.4 486.8 419.5 1,829.4 454.0 ContiTech 107.7 129.2 111.8 113.4 462.1 115.5 104.3 115.1 98.4 433.3 54.9 Other / Consolidation -28.6-19.8-29.1-32.6-110.1-27.6-26.7-25.1-27.8-107.2-33.5 Continental Corporation 747.4 883.2 886.3 746.8 3,263.7 903.2 906.9 637.8 896.9 3,344.8 977.9 EBIT margin in % 2013 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 8.7 8.7 8.6 6.9 8.2 9.2 8.5 9.8 8.7 9.1 10.1 Powertrain 3.4 3.6 3.2 1.3 2.9 4.1 2.1-16.1 4.1-1.5 5.3 Interior 5.9 6.5 6.5 4.1 5.8 8.1 8.9 8.4 9.1 8.7 9.7 Tires 16.4 18.2 20.0 18.4 18.3 19.0 20.1 19.0 16.8 18.7 18.8 ContiTech 11.4 12.9 11.6 11.6 11.9 11.9 10.7 11.7 9.8 11.0 4.3 Continental Corporation 9.3 10.3 10.6 8.9 9.8 10.8 10.6 7.4 10.1 9.7 10.2 Changes Y-o-Y in % 2014 2015 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY C&S 10.9-2.1 15.7 34.4 13.6 24.7 Powertrain 23.8-43.6-631.9 252.6-153.9 49.9 Interior 44.0 37.5 38.7 147.9 59.2 38.5 Tires 20.7 9.6-1.6-7.3 4.4 3.0 ContiTech 7.2-19.3 3.0-13.2-6.2-52.5 Continental Corporation 20.8 2.7-28.0 20.1 2.5 8.3 EDMR Equity and Debt Markets Relations 67
6) Fact Sheets Consolidated Statement of Income (mn ) Q1 2013 Q1 2014 Q1 2015 Sales 8,033.3 8,390.1 9,568.9 Cost of sales -6,244.3-6,294.4 4-7,146.1 1 Gross margin on sales 1,789.0 2,095.7 2,422.8 Research and development expenses -499.8-544.1-643.0 Selling and logistics expenses -406.5-430.9-520.9 Administrative expenses -171.8-178.9-214.5 Other income and expenses 33.8-47.0-77.7 Income from at-equity accounted investees 7.2 8.4 11.2 Other income from investments -4.5 0.0 0.0 Earnings before interest and taxes 747.4 903.2 977.9 Interest income 1 21.7 26.6 27.8 Interest expense 1,2-144.8-106.6-83.5 Net interest expense -123.1-80.0-55.7 Earnings before taxes 624.3 823.2 922.2 Income tax expense -161.0-215.6-244.4 Net income 463.3 607.6 677.8 Non-controlling interests -22.1-19.3-21.1 Net income attributable to the shareholders of the parent 441.2 588.3 656.7 Basic earnings per share in EUR 2.21 2.94 3.28 Diluted earnings per share in EUR 2.21 2.94 3.28 1 Including interest effects from pension obligations, from other long-term employee benefits, and from pension funds. In 2013, the resulting income was reported under interest expense; the comparative figures for the prior years have been restated accordingly. 2 Including gains and losses from foreign currency translation, from changes in the fair value of derivative instruments as well as from available-for-sale financial assets. EDMR Equity and Debt Markets Relations 68
6) Fact Sheets Consolidated Statement of Financial Position Assets Assets in millions March 31, 2015 Dec. 31, 2014 March 31, 2014 Goodwill 6,198.8 5,769.1 5,527.7 Other intangible assets 1,194.1194 1 443.3 501.6 Property, plant and equipment 9,351.5 8,446.4 7,728.3 Investment property 17.6 17.5 20.1 Investments in at-equity accounted investees 299.4 298.5 428.3 Other investments 12.5 10.7 7.7 Deferred tax assets 1,894.2 1,573.4 956.3 Defined benefit assets 3.1 1.6 6.1 Long-term derivative instruments and interest-bearing investments 289.4 301.2 269.6 Other long-term financial assets 37.3 41.9 19.9 Other long-term assets 21.9 19.7 20.2 Non-current assets 19,319.8 16,923.3 15,485.8 Inventories 3,607.1 2,987.6 3,102.0 Trade accounts receivable 7,396.7 5,846.2 6,055.8 Other short-term term financial assets 423.9 382.5 362.33 Other short-term assets 873.7 731.3 648.0 Income tax receivables 131.0 60.3 64.3 Short-term derivative instruments and interest-bearing investments 166.0 63.1 35.1 Cash and cash equivalents 2,372.3 3,243.8 2,008.0 Assets held for sale 53.7 3.0 33.4 Current assets 15,024.4 13,317.8 12,308.9 Total assets 34,344.2 30,241.1 27,794.7 EDMR Equity and Debt Markets Relations 69
6) Fact Sheets Consolidated Statement of Financial Position Total Equity and Liabilities Equity and liabilities in millions March 31, 2015 Dec. 31, 2014 March 31, 2014 Subscribed capital 512.0 512.0 512.0 Capital reserves 41556 4,155.6 41556 4,155.6 41556 4,155.6 Retained earnings 8,061.0 7,404.3 6,123.6 Other comprehensive income -990.3-1,399.8-1,284.3 Equity attributable to the shareholders of the parent 11,738.3 10,672.1 9,506.9 Non-controlling interests 483.5 352.5 314.7 Total equity 12,221.8 11,024.6 9,821.6 Provisions for pension liabilities and similar obligations 4,064.0 3,483.7 2,504.3 Deferred tax liabilities 256.9 178.5 133.7 Long-term provisions for other risks and obligations 326.9 306.3 263.7 Long-term portion of indebtedness 4,273.0 5,077.4 3,574.8 Other long-term financial liabilities 71.0 48.7 32.2 Other long-term liabilities 56.2 46.4 42.5 Non-current liabilities 9,048.0 9,141.0 6,551.2 Trade accounts payable 57752 5,775.2 48616 4,861.6 47568 4,756.8 Income tax payables 707.9 577.3 597.1 Short-term provisions for other risks and obligations 827.2 732.7 607.3 Indebtedness 2,653.4 1,354.2 2,980.1 Other short-term financial liabilities 1,942.0 1,649.2 1,564.8 Other short-term liabilities 1,148.8 900.2 915.8 Liabilities held for sale 19.9 0.3 Current liabilities 13,074.4 10,075.5 11,421.9 Total equity and liabilities 34,344.2 30,241.1 27,794.7 EDMR Equity and Debt Markets Relations 70
6) Fact Sheets Consolidated Statement of Cash Flows January 1 to March 31 in millions 2015 2014 Net income 677.8 607.6 Income tax expense 244.4 215.6 Net interest expense 55.7 80.00 EBIT 977.9 903.2 Interest paid -71.7-60.8 Interest received 8.7 7.0 Income tax paid -269.4-178.3 Dividends received 17.2 15.6 Depreciation, amortization, impairment and reversal of impairment losses 425.3 392.6 Income from at-equity accounted and other investments, incl. impairment and reversal of impairment losses -11.2-8.4 Gains from the disposal of assets, companies and business operations -6.1-7.0 Changes in inventories -180.9-268.1 trade accounts receivable -855.1-759.8 trade accounts payable 504.5 177.2 pension and similar obligations 16.9 0.5 other assets and liabilities 127.5 205.1 Cash flow arising from operating activities 683.6 418.8 Cash flow from the disposal of property, plant and equipment, and intangible assets 10.2 17.8 Capital expenditure on property, plant and equipment, and software -356.8-340.9 Capital expenditure on intangible assets from development projects and miscellaneous -17.2-14.7 Cash flow from the disposal of companies and business operations -1.7 0.2 Acquisition of companies and business operations -589.4-17.7 Cash flow arising from investing activities -954.9-355.3 Cash flow before financing activities (free cash flow) -271.3 63.5 Change in indebtedness -768.7-83.5 Dividends paid and repayment of capital to non-controlling interests -1.9-0.9 Cash and cash equivalents arising from first consolidation of subsidiaries 0.2 Cash flow arising from financing activities -770.6-84.2 Change in cash and cash equivalents -1,041.9-20.7 Cash and cash equivalents at the beginning of the reporting period 3,243.8 2,044.8 Effect of exchange rate changes on cash and cash equivalents 170.4-16.1 Cash and cash equivalents at the end of the reporting period 2,372.3 2,008.0 EDMR Equity and Debt Markets Relations 71
6) Fact Sheets Q1 2015 Results Reported & Adjusted (mn ) by Division Chassis & Safety Powertrain Interior Tires ContiTech Cons./Corr. Corporation 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Sales 1,878.2 2,136.0 1,579.1 1,826.5 1,699.1 1,975.2 2,318.3 2,419.8 973.4 1,268.3-58.0-56.9 8,390.1 9,568.9 EBIT 172.3 214.9 64.5 96.7 137.8 190.9 440.7 454.0 115.5 54.9-27.6-33.5 903.2 977.9 in % of sales 9.2% 10.1% 4.1% 5.3% 8.1% 9.7% 19.0% 18.8% 11.9% 4.3% 10.8% 10.2% Amortization of intangible assets from PPA 6.8 0.3 16.5 2.1 24.9 0.4 1.0 1.7 1.5 27.6 0.0 0.0 50.7 32.1 Total special effects 0.0 0.0 0.0 0.0 0.0 0.0-0.2-0.1-1.2 0.3 0.0 0.0-1.4 0.2 Total consolidation effects 0.0 0.0 2.7 3.4 0.0 0.0-0.5 3.6 0.0 36.7 0.0 0.0 2.2 43.7 Total consolidation & special effects 0.0 0.0 2.7 3.4 0.0 0.0-0.7 3.5-1.2 37.0 0.0 0.0 0.8 43.9 Adjusted operating result (adj. EBIT) 1 179.1 215.2 83.7 102.2 162.7 191.3 441.0 459.2 115.8 119.5-27.6-33.5 954.7 1,053.9 in % of adjusted sales 95% 9.5% 10.1% 1% 53% 5.3% 58% 5.8% 96% 9.6% 97% 9.7% 19.1% 1% 19.2% 11.9% 11.6% 11.4% 11.4% 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 72
6) Fact Sheets Q1 2015 Results Reported & Adjusted (mn ) by Group Automotive Rubber Cons./Corr. Corporation 2014 2015 2014 2015 2014 2015 2014 2015 Sales 5,128.8 5,912.1 3,271.3 3,669.3-10.0-12.5 8,390.1 9,568.9 EBIT 374.6 502.5 556.2 508.9-27.6-33.5 903.2 977.9 in % of sales 7.3% 8.5% 17.0% 13.9% 10.8% 10.2% Amortization of intangible assets from PPA 48.2 2.7 2.5 29.4 0.0 0.0 50.7 32.1 Total special effects 0.0 0.0-1.4 0.2 0.0 0.0-1.4 0.2 Total consolidation effects 2.7 3.4-0.5 40.3 0.0 0.0 2.2 43.7 Total consolidation & special effects 2.7 3.4-1.9 40.5 0.0 0.0 0.8 43.9 Adjusted operating result (adj. EBIT) 1 425.5 508.6 556.8 578.8-27.6-33.5 954.7 1,053.9 in % of adjusted sales 8.3% 8.7% 17.0% 17.0% 11.4% 11.4% 1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR Equity and Debt Markets Relations 73
6) 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 74
6) 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 / B2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1 Contracted rating since May 19, 2000. 2 Non-contracted rating since February 1, 2014. 3 Contracted rating since November 7, 2013. EDMR Equity and Debt Markets Relations 75
References Useful Links Continental Investor Relations website http://www.continental-ir.com Annual and interim reports http://www.continentalcorporation.com/www/portal_com_en/themes/ir/financial_reports/ 2014 Fact Book http://www.continentalcorporation.com/www/portal_com_en/themes/ir/financial_reports/ Investor Relations events and presentations Sustainability at Continental (presentation and fact sheet for investors) Corporate Social Responsibility http://www.continental-corporation.com/www/portal_com_en/themes/ir/events/ http://www.continental-ir.com http://www.continental-sustainability.com Corporate Governance Principles Continental share Continental bonds and rating http://www.continental- corporation.com/www/portal_com_en/themes/ir/corporate_governance/ http://www.continental-corporation.com/www/portal_com_en/themes/ir/share/ http://www.continental-corporation.com/www/portal_com_en/themes/ir/bonds/ com/www/portal com en/themes/ir/bonds/ Continental IR mobile website http://continental.ir-portal.de EDMR Equity and Debt Markets Relations 76