Preliminary FY 2010 Results - conti

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Transcript Preliminary FY 2010 Results - conti

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 1 | © Continental AG

Baader Bank Roadshow

Munich, September 27, 2013

Rolf Woller Head of Investor Relations

AGENDA 1)

Corporation Highlights

2)

Automotive Group

3)

Rubber Group

4)

Indebtedness and Cash Flow

5)

Outlook

Back-up & Fact Sheets 2011 – H1 2013

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 2 | © Continental AG

Corporation Highlights

Most Important KPIs H1 2013

Sales up by 0.4% to €16.6 bn

; organic sales in Q2/13 increased by 4.8%

Adj. EBIT

margin at 10.8%

- adj. EBIT 1) (PPA and special effects €146.3 mn) at €1,776.9 mn

NIAT

up to €1,142 mn

due to recognition of €256 mn deferred tax assets in the U.S.

Free cash flow of €88 mn

in H1/13 due to reversed NWC effects; positively impacted by €158 mn net cash from acquisitions & disposals 3) ; FCF in Q2/13 amounted to €223 mn

Net indebtedness at €6.0 bn as at June 30, mainly due to €450 mn dividend payment; Gearing ratio at 69%

Sustained value creation:

trailing ROCE

up by 10 bps to 18.6% Financing activities during July 2013:

Early repayment of 8.5% bond (07/15), call of 7.5% bond due on Sept. 16, 2013, Issuance of new bond under the Debt Issuance Programme with a coupon of 3% maturing 2018 Rating upgrade by Fitch: back to investment grade at BBB outlook stable 1) 2) 3) 4) 5) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) Attributable to the shareholders of the parent Acquisition and disposals of companies and business operations Gearing ratio calculated by applying IAS 19 (rev. 2011); Gearing ratio at YE 2012 was 58% before applying IAS 19 (rev. 2011) and 65% thereafter Reported EBIT (LTM) – applying IAS 19 (rev. 2011) – divided by average operating assets (LTM) EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 3 | © Continental AG

Corporation Highlights

Divisional Highlights H1 2013

Chassis & Safety

at 9.4% adj. EBIT 1) margin (PY: 10.2%); organic sales up by 4% (Q2/13 +7%) mainly due to strong growth in ADAS (+57% unit sales) and market share gains in HBS

Powertrain

at 4.8% adj. EBIT 1) +2%); adj. EBIT 1) margin (PY: 5.3%); organic sales decrease by 2% (Q2/13 margin advanced 200 bps QOQ to 5.8% in Q2/13 thanks to higher sales and better R&D utilization

Interior

at 8.6% adj. EBIT 1) with an operating leverage 2) margin (PY 8.9%); organic sales accelerated to 8% in Q2/13 of 13%

Automotive Group

organic sales increased by 2% in H1/13 and by 6% in Q2/13; adj. EBIT 1) margin improved by 110 bps QOQ mainly thanks to higher sales and better leverage of R&D cost

Tires

adj. EBIT 1) margin maintained a high level at 17.4% (PY 17.4%) benefiting from lower raw material cost (H1/13: ~ €170 mn) and solid price mix; PLT volumes up by 5% and CV volumes up by 7% in Q2/13. PC & LT tire replacement demand recovering slowly in Europe (H1/13: -4%) and NAFTA (H1/13: 0%)

CVT

EBIT margin up 30 bps at 11.4% in H1/13 mainly due to lower raw material cost

ContiTech

adj. EBIT 1) margin only down by 10 bps to 12.9%; organic sales up by 0.1%

Rubber Group

organic sales decreased by 0.2%; adj. EBIT 1) margin maintained at high level of 16.3% (PY: 16.3%) EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 4 | © Continental AG 1) 2) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) Operating leverage = delta adj. EBIT 1) divided by delta sales

Corporation Highlights

Sales and Adjusted EBIT

by Quarter FY Sales €30,505 mn FY Sales €32,736 mn H1 Sales €16,574 mn adj. EBIT

€1,777 mn

7,346 7,533 7,714 7,912 8,320 8,187 8,134 8,096 8,033 966 889 796 8,541 981 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Sales (mn €) 1) Adj. EBIT (mn €) 1) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 5 | © Continental AG

Corporation Highlights

Automotive and Rubber Group by Quarter Automotive Group

Sales (mn €) 1) Adj. EBIT (mn €)

Rubber Group

Sales (mn €) 1) Adj. EBIT (mn €) 496 566 476 570 412 415 351 430 1) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 6 | © Continental AG

Corporation Highlights

Growth Profile H1 2013 in %

Conti Automotive Group org. sales growth PC & LT prod. growth ww PC & LT prod.

growth EU/NAFTA -2 1 2 ContiTech org. sales growth PC & LT prod.

growth Europe GDP growth Eurozone 2013 1) 0 -6 -0.6

Passenger & Light Truck Tires unit sales growth Replacement tire volume growth Europe Replacement tire volume growth NAFTA 1) According to IMF (WEO Update July 2013) EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 7 | © Continental AG -4 -1 0 Commercial Vehicle Tires unit sales growth Replacement tire volume growth Europe Replacement tire volume growth NAFTA -2 2 8

Corporation Highlights

Sustained Value Creation

13.2% 14.1% 15.7% 16.2% 16.8% 18.8%

18.5%

18.6%

17.6% 17.9% 18.1%

trailing OA (mn €)

trailing ROCE (in %) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

1) 2) 3)

2011 2012

Trailing operating assets are calculated as assets for the last twelve months (LTM) Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets (OA) for the LTM Q4/12, Q1/13 and Q2/13 applying IAS 19 (rev. 2011) EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 8 | © Continental AG

Q2 2013 Q3 Q4

Corporation Highlights

Debt Capital Markets – Summary of Transactions in July – Sept 2013

Early redemption of 07/15 maturity; principal amount €750 mn with a coupon 8.5% Call of 09/17 maturity; principal amount of €1,000 mn with a coupon of 7.5% and partial refinancing via new issuance in July, bond will be redeemed at Sept. 16 Call of 10/18 maturity; principal amount of €625 mn with a coupon 7.125% and full refinancing via new issuance in September, bond will be redeemed at Nov. 8 Call of 01/16 maturity; principal amount of €625 mn with a coupon 6.5% and full refinancing via new issuance in September, bond will be redeemed at Nov. 18 Continental successfully placed three bonds under the Debt Issuance Programme Issuer: Issue: €750 mn Issuance 07/18

Continental AG Senior Notes

€750 mn Issuance 09/20

Continental AG Senior Notes

€750 mn Issuance 03/17

Continental AG Senior Notes

Principal amount: Rating: Coupon:

€750 mn S&P: BB / Moody’s: Ba2 3.0% €750 mn S&P: BB / Moody’s: Ba1/ Fitch 1) BBB 3.125% €750 mn S&P: BB / Moody’s: Ba1 / Fitch 1) BBB 2.5%

Issuance: Maturity: Offering Price:

July 16, 2013 July 16, 2018 98.95% Sept. 9, 2013 Sept. 9, 2020 98.228% Sept. 19, 2013 March 20, 2017 99.595%

Issuances will reduce interest expenses and improve Continental’s maturity profile

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 9 | © Continental AG 1) Unsolicited rating

Corporation Highlights

Pro forma

Maturities

for Syndicated Loan and Bonds

Pro forma as at June 30, 2013

Syndicated Loan Bonds 1,500 730 3)

(mn €)

Gross indebtedness Cash

Net indebtedness

Available credit lines Total liquidity

FY 12

8,253 2,397

5,320

2,801 5,199 750 625 1,000 625 727 4) 2014 2015 2016 2017 2018 2019 2020

H1 2013 8,076 5) 1,579 5) 6,012 5) 2,970 4,549 5) Pro forma as at Sept, 2013

730 3) 1,500 750 750 727 4) 750 1) 2) 3) 4) 5) 2014 2015 2016 2017 2018 2019 Assumptions: Redemption of called bonds and issuance of new 2018 maturity; original maturities are displayed All amounts shown are nominal values Amount drawn under the revolving credit facility (RCF) at June 30, 2013 which amounts to a total volume of €3,000 mn RCF has to be shown as short term debt according to IFRS and matures in 2018 at drawn amount Nominal amount $950 mn (exchange rate at June 30, 2013: 1.3067) Gross and net indebtedness, total liquidity and cash position would have to change in order to reflect redemption of called bonds including last interest payment 2020 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 10 | © Continental AG

Corporation Highlights

Upgrade to Investment Grade

Since mid 2009 Continental’s credit rating has continuously improved due to the strong recovery of business operations: 4,55 186%

Equity ratio 2)

32%

FFO/debt 3)

1,08 22%

Leverage ratio 1)

H1/09 H1/13

Gearing ratio 2)

H1/09 69% H1/13 H1/09 H1/13 Mid single digit H1/09 Continental’s current credit rating is:

Fitch since July 15, 2013: BBB outlook stable S&P since May 24, 2013: BB outlook stable Moody’s since August 12, 2013: Ba1 outlook stable

>30% H1/13 S&P as well as Moody’s are still applying the parent-subsidiary criterion on Continental’s credit rating but see Conti on a stand-alone basis back in investment grade

S&P (May 24, 2013): "We have raised our assessment of Continental's stand-alone credit profile (SACP) to

'BBB'

to reflect the improved financial risk profile. On a stand-alone basis, we view Continental's financial risk profile as intermediate 4) ." Moody’s (Aug 12, 2013): “Continental's current leverage, with debt/EBITDA of 2.2x, and profitability, with EBIT margins of 10% for the last 12 months ended 30 June 2013, would indicate a higher rating, in the

low to mid-Baa

category, than the currently assigned Ba1 rating.” EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 11 | © Continental AG 1) 2) 3) 4) Leverage covenant ratio as defined in syndicated loan agreement IAS 19 (rev. 2011) applied for H1/13 According to broker estimates S&P: “The SACP is not a rating but a rating component that reflects our opinion of a company's creditworthiness absent any extraordinary intervention from its parent.“

2) Automotive Group

Benefitting from Stabilization in European Production

Automotive Group Sales (mn €) 4,937 4,764 4,733 4,911 5,160 Adj. EBIT 1) (mn €) and Adj. EBIT 1) Margin 415 430 8.4% 8.3% Q2/12 Q3/12 +223 Q4/12 Q1/13 Q2/13 Q2/12 Q3/12 +15 Q4/12 Q1/13 Q2/13 Sales increased by €223 mn YOY in Q2/13 and were up 5.1% QOQ; organic sales growth in Q2/13 at +5.6% Adj. EBIT 1) increased by €15 mn – low operating leverage mainly due to Chassis & Safety which still suffers from high R&D cost on new volumes in ADAS Adjusted EBIT 1) margin at 8.3% (PY: 8.4%) Expect sales and adj. EBIT 1) in Q3/13 to decline in line with normal seasonal pattern EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 12 | © Continental AG 1) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011)

2) Automotive Group

Adj. EBIT

Down Mainly on Sustained High R&D in H1 2013

Automotive Group Sales (mn €) 3,343 10,071 3,133 3.0%

-

59 Automotive Group Adj. EBIT 1) (mn €) 287 8.6% 0 781 3,654 -2.0% 1.7% 344 151 4.8% 7.8% 3.7% 9.4%

Organic growth (%)

Adj. EBIT margin (%)

Chassis & Safety Powertrain Interior cons.

Automotive Group Chassis & Safety Powertrain Interior cons.

Automotive Group 1) 2) Reported sales change Chassis & Safety: 1.7% Reported EBITDA 2) : €1,242 mn (12.3% of sales) Powertrain: Interior: Automotive Group: -2.1% 2.1% 0.6% Reported EBIT 2) : €637 mn (6.3% of sales) R&D 2) : €842 mn (8.4% of sales) Capex: €384 mn (3.8% of sales) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) IAS 19 (rev. 2011) applied EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 13 | © Continental AG

3) Rubber Group

Adjusted EBIT

Margin Kept at High Level

3,256 Rubber Group Sales (mn €) 3,378 3,372 3,132 3,392 Adj. EBIT 1) (mn €) and Adj. EBIT 1) Margin 566 570 17.4% 17.0% +136 +4 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Sales increased by €136 mn in Q2 2013 mainly thanks to higher volumes compared to Q2 2012 in the tire business. Sales at ContiTech increased by €67 mn (vs. Q2/12) mainly due to consolidation effects from Freudenberg and Parker Hanifin Adj. EBIT 1) up by €4 mn on a nearly balanced price/mix; raw material tailwinds amounting to approx. €80 mn in Q2/13 1) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 14 | © Continental AG

3) Rubber Group

Solid Profitability Maintained in H1 2013

1,940 0.1% Rubber Group Sales (mn €) 4,641 6,524

-

58 -0.4% -0.2%

Organic growth (%)

Rubber Group Adj. EBIT 1) (mn €) 239 12.9% 807 17.4% 0 1)

Adj. EBIT margin (%)

1,046 16.3% ContiTech Tires cons.

Rubber Group ContiTech Tires cons.

Rubber Group 1) 2) Reported sales change ContiTech: Tires: Rubber Group: 4.6% -1.6% 0.2% Reported EBITDA 2) : €1,286 mn (19.7% of sales) Reported EBIT 2) : €1,042 mn (16.0% of sales) R&D 2) : €145 mn (2.2% of sales) Capex: €482 mn (7.4% of sales) Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) IAS 19 (rev. 2011) applied EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 15 | © Continental AG

3) Rubber Group

Stabilization in Demand During Q2 2013

10.0% Replacement Tire Development for PC & LT Europe

EUROPE

5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 10.0% Replacement Tire Development for PC & LT NAFTA

NAFTA

5.0% 0.0% -5.0% -10.0% -15.0% -20.0% PC & LT Tire Replacement (YOY chg. monthly) Vehicle miles YOY chg. (DOT) 1) PC & LT Tire Replacement (YOY chg. monthly) 1) U.S. Department of Transportation EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 16 | © Continental AG

3) Rubber Group

Expected Raw Material Price Development in 2013 - Updated

Natural rubber price (TSR20) forecast lowered from US $3.25 to US $3.00 on average in 2013 Synthetic rubber price (butadiene feedstock) forecast lowered from US $2.15 to US $2.00 average in 2013 Oil-based chemicals, textile and carbon black to increase YOY About €300 mn tailwind expected from current raw material price development for FY 2013 Raw Material Price Development 1) 2010-2013E Average : TSR 20: 345 Butadiene: 159 Average : TSR 20: 463 Butadiene: 294 Average : TSR 20: 326 Butadiene: 237 Average : TSR 20: 300 Butadiene: 200 537 479 467 431 315 309 322 133 150 162 189 208 287 371 371 376 342 287 299 304 252 295 350 307 288 307 187 169 177 169 212 240 TSR 20 US cents/kg Butadiene US cents/kg 1) Source: Bloomberg, prices as at July 10, 2013 and Continental estimates EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 17 | © Continental AG

(mn €)

Indebtedness and Cash Flow

Net Indebtedness Bridge

195 929 882 450 61 €1,062 mn burden from change in working capital; reversal of favorable effects from Q4 2012 Gearing Ratio 2) 5,320 65% 849 854 6,012 69% EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 18 | © Continental AG 1) 2) 3) According to cash flow statement incl. intangible assets Gearing ratio calculated applying IAS 19 (rev. 2011) Acquisition and disposals of companies and business operations

Indebtedness and Cash Flow

Development of Net Indebtedness and Gearing Ratio

118% 117% 104% 103% 90% Net indebtedness (mn €) Gearing ratio (in %) Gearing ratio applying IAS 19 (rev. 2011) 91% 88% 85% 83% 82% 77% 65% 64% 69% 58% YE 2010 Q1 H1 2011 9M YE Q1 H1 2012 9M YE Q1 2013 H1 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 19 | © Continental AG

Indebtedness and Cash Flow

Cash Flow Overview

Cash flow (mn €) H1 2012 & H1 2013

988 624 126 -88 2013 -713 2012 -862 CF from operating activities 1) Acquisition and disposals of companies and business operations CF used for investing activities EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 20 | © Continental AG Free cash flow

Indebtedness and Cash Flow

Adjusted EBITDA

and Leverage Ratio

Sales and Adj. EBITDA 1) (mn €) in H1 Sales (mn €) 16,506 16,574 14,878 Leverage Ratio 2) by Quarter

3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

2,069 13.9% 2,442 14.8% 2,442 14.7%

1.65

1.48 1.48

1.35 1.27

0.93 0.99

1.08

2011 2012 2013 9M YE Q1 H1 9M YE Q1 H1 2011 Leverage ratio 2012 2013 Leverage covenant 1) 2) Adjusted EBITDA as defined in syndicated loan agreement; IAS 19 (rev. 2011) applied to 2013 only Leverage covenant ratio as defined in syndicated loan agreement EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 21 | © Continental AG

Indebtedness and Cash Flow

Interest Result H1 2013

Interest Result H1/13 (mn €)

Net Interest Expense H1/13:

Cost for the syndicated loan lowered by €89 mn to €48 mn firstly due to lower utilization and secondly to lower market interest rates and margin levels Cost for bonds increased by €109 mn mainly due to the carrying amount adjustment ( €89 mn) and the US $ bond issued in Sept. 2012 Effects from valuation of derivative instruments swung from + €102 mn to €3 mn in H1/13, therefore impacting net income negatively with about €75 1) mn Interest expenses amounting to

€130 mn

from the associated reversal of call options for the two bonds called in May (07/15) and July (09/17) will be incurred

in Q3/13 47.7

1) Assuming 28% corporate tax rate; refer to EPS breakdown in back-up for further details 2) Including €23.4 mn negative FX effects and €2.2 mn from securities available for sale EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 22 | © Continental AG

222.1

89.1

36.6

44.1

23.9

14.0

360.4

Outlook PC & LT Production by Quarter

k units k units

2011: 20.0 mn 2012: 19.2 mn 2013E: 18.5 mn 2011: 13.2 mn 2012: 15.4 mn 2013E: 15.8 mn

Europe Source: IHS and own estimates EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 23 | © Continental AG NAFTA

Outlook

Market Outlook for Major Regions 2013

PC & LT 1) Production (mn units) 2012 2013E 40.3

42.5

Commercial Vehicle 2) Prod. (k units) 2012 2013E 1,817 1,967 19.2

18.5

15.4

15.8

4.3

4.4

Europe NAFTA Source: IHS and own estimates South America Asia PC & LT Repl.

3) Tire Market (mn units) 2012 287 290 2013E 248 253 278 295 615 599 496 521 185 205 Europe NAFTA Source: IHS and own estimates South America Asia CV Repl.

4) Tire Market (mn units) 2012 2013E 67.3

70.2

59 63 18.9

20.4

20.5

21.0

12.7

13.4

Europe NAFTA Source: LMC and own estimates EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 24 | © Continental AG South America Asia Europe 1) 2) 3) 4) Passenger car & light truck <6t Heavy vehicles >6t Passenger car & light truck replacement Commercial vehicle replacement (radial & biased) NAFTA Source: LMC and own estimates South America Asia

Outlook

Continental 2013

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 Free cash flow 2012 2) €32,736 mn 11.1% €19,505 mn €1,602 mn €13,262 mn €2,092 mn Slight positive effect in the Rubber Group + €12 mn €499 mn 26% €2,019 mn 6.2% of sales €1,653 mn 2013E To increase to around €34 bn Adj. EBIT 1) margin expected at >10% To increase to above €20 bn sales Adj. EBIT 1) margin >8% To increase to ~ €14 bn sales Adj. EBIT 1) margin >15% Relief of ~ €300 mn from raw material cost for the Rubber Group expected About €50 mn Net interest result to amount to ~ €800 mn mainly due to reversal of value for the call options for the bonds and the early redemption price of the bonds; Tax rate <30% before the recognition of DTA 3) Capex in line with 2012; PPA amortization will amount to ~ €370 mn Gearing ratio expected to stay below 60% FCF > €700 mn EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 25 | © Continental AG 1) 2) 3) Before amortization of intangibles from PPA, consolidation (2012 in comparison to 2011) and special effects; applying IAS 19 (rev. 2011) IAS 19 (rev. 2011) applied Deferred tax asset sin the U.S.A. amounting to €256 mn

Thank you for your attention!

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 26 | © Continental AG Official Sponsor of the 2014 FIFA World Cup TM

Disclaimer

This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Baader Bank roadshow in Munich on September 27, 2013. 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 in currency exchange rates or interest rates, the introduction 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.

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 27 | © Continental AG

Contact

Equity and Debt Markets Relations

Vahrenwalder Str. 9 30165 Hanover Germany Rolf Woller Telephone: +49 511 938 1068 e-mail: [email protected]

Ingrid Kampf Telephone: +49 511 938 1163 Fax: +49 511 938 1080 e-mail: [email protected]

www.continental-ir.com

Klaus Paesler Telephone: +49 511 938 1316 e-mail: [email protected]

Sabine Reese Telephone: +49 511 938 1027 e-mail: [email protected]

Michael Saemann Telephone: +49 511 938 1307 e-mail: [email protected]

Henry Schniewind Telephone: +49 511 938 1062 e-mail: [email protected]

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 28 | © Continental AG

Continental

Financial Calendar

2013

Annual Financial Press Conference Q1 Financial Report Annual Shareholders’ Meeting Half Year Financial Report Nine Month Financial Report

2014

Annual Financial Press Conference Q1 Financial Report Annual Shareholders’ Meeting Half Year Financial Report Nine Month Financial Report

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 29 | © Continental AG

March 7, 2013 May 3, 2013 May 15, 2013 August 1, 2013 November 7, 2013 March 2014 May 2014 April 25, 2014 August 2014 November 2014

Continental

Share Data / ADR Data

Share Data

Type of share Bloomberg Ticker Reuters Ticker German Security Identification Number (WKN) ISIN Number Shares outstanding as at June 30, 2013

ADR Data

Ratio (ordinary share: ADR) Bloomberg Ticker Reuters Ticker ISIN Number ADR Level Exchange Sponsor EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 30 | © Continental AG No-par value share CON CONG 543 900 DE0005439004 200,005,983 1:1 CTTAY CTTAY.PK

US2107712000 Level 1 OTC Deutsche Bank Trust Company Americas

Continental

Bond Data

Issuer Issue Principal Amount Offering Price Rating at Issuance Date

Conti-Gummi Finance B.V., Netherlands 1) Senior Notes 2) €625 mn 98.861% B1 (Moody’s) B (S&P) Conti-Gummi Finance B.V., Netherlands 1) Senior Notes 2) €1,000 mn 99.3304% B1 (Moody’s) B (S&P)

Current Corp.

Rating Coupon Issue Date Maturity Start of Period for Redemption (60 90 days’ prior notice)

6.5% p.a.

October 5, 2010

Jan. 15, 2016

October 5, 2013

Interest Payment WKN ISIN

Semi annual Jan. 15/Jul. 15 A1A1P0

Denomination

DE000A1A1P09 €1,000 with min. tradable amount €50,000 7.5% p.a.

Sept. 13, 2010

Sept. 15, 2017

Sept. 13, 2013 Semi annual Mar. 15/Sept. 15 A1A0U3 DE000A1A0U37 €1,000 with min. tradable amount €50,000 Conti-Gummi Finance B.V., Netherlands 1) Continental AG 1) Conti-Gummi Finance B.V., Netherlands 1) Senior Notes €750 mn 99.595% Ba1 (Moody ’s) BB (S&P) BBB (Fitch 3) ) Senior Notes €750 mn 98.95% Ba2 (Moody BB (S&P) ’s) Senior Notes €625 mn 99.2460% B1 (Moody’s) B (S&P) Ba1 (Moody’s), BB (S&P), BBB (Fitch 3) ) 2) 2.5% p.a.

Sept. 19, 2013

March 20, 2017

3.0% p.a.

July 16, 2013

July 16, 2018

7.125% p.a.

October 5, 2010

Oct. 15, 2018

-- -- October 5, 2013 Annual March. 20 Tba Tba €1,000 with min. tradable amount €1,000 Semi annual Jan. 16/Jan. 16 A1X24V Semi annual Apr. 15/Oct. 15 A1A1P2 XS 0953199634 €1,000 with min. tradable amount €1,000 DE000A1A1P25 €1,000 with min. tradable amount €50,000 Continental Rubber of America, Corp., USA 1) Senior Notes 2) $950 mn 100% Ba3 (Moody’s) BB- (S&P) 4.5% p.a.

Sept. 24, 2012

Sept. 15, 2019

Sept. 24, 2015 Continental AG Senior Notes €750 mn 99.228% Ba1 (Moody ’s) BB (S&P) BBB (Fitch 3) ) 3.125% p.a.

Sept. 9, 2013

Sept. 9, 2020

-- 1) Semi annual Mar. 15/Sept. 15 A1G9JJ DE000A1G9JJ0 $1,000 with min. tradable amount $150,000 Annual Sept. 9 A1X3B7 XS 0969344083 €1,000 with min. tradable amount €1,000 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 31 | © Continental AG 1) 2) 3) Guaranteed by Continental AG and certain subsidiaries of Continental AG Security package released in connection with the refinancing of the Syndicated Facility, upstream guarantees package still in place Unsolicited rating

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 32 | © Continental AG

Back-up

Rating of S&P and Moody’s Since 2000

Credit Rating Standard & Poor’s:

Before Siemens VDO

Investment Grade

BBB+ BBB+ BBB BBB BBB SACP 1) : BBB

Non-Investment Grade

05/19/00 10/31/01 08/06/04

Credit Rating Moody’s:

Before Siemens VDO 11/16/07 BB BB BB B+ B+ B 09/26/08 01/27/09 08/13/09 05/18/10 07/20/11 05/16/12 05/24/13

Investment Grade

Baa1 Baa1 Baa2 Baa2 Baa3 Ba1 Ba1

Non-Investment Grade

Ba2 Ba2 Ba3 Ba3 B1 05/19/00 11/15/01 01/04/05 02/26/08 11/07/08 12/18/08 02/23/09 06/02/09 08/14/09 04/05/11 09/28/12 08/12/13 1) S&P: “The SACP is not a rating but a rating component that reflects our opinion of a company’s creditworthiness absent any extraordinary intervention from its parent“. EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 33 | © Continental AG

Back-up

Accounting Changes and Other Effects

Implementation of IAS 19 rev. 2011, employee benefits

(first time adoption as of Jan 1, 2013)

P&L effect

Positive EBIT effect of about €114 mn in 2012 of which approx. €92 mn are shown in the net interest expense Positive ROCE effect

Effect on statement of financial position (Balance sheet)

Provision for pension obligations rise by about €1,2 bn Deferred tax asset up by about €0.2 bn Equity decline by about €1 bn Gearing ratio will remain below 60% in 2013 Higher volatility of equity and gearing ratio in the future

IAS 39: Early redemption options for bonds Purchase price allocation

2012: Positive effect of €113 mn 2013: Negative effect 1) can amount to €250 mn Amortization will decrease to about €370 mn from €446 mn in 2012 Market value of derivative instruments will change accordingly Intangible assets to decrease accordingly 1)

Corporate tax rate

Expected to stay below 30% 2) Assuming worst case scenario 2) before the recognition of the DTA amounting to €256 mn No impact EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 34 | © Continental AG

Cash flow effect

No impact No impact No impact No impact

Back-up

Overview of Volume Development

Q1/11 H1/11 9M/11 FY 11 Units (YOY change) Market data

EU production NAFTA production PC & LT production EU + NAFTA Worldwide production

Continental

ESC ABS Boosters Calipers ADAS Engine ECUs Injectors Transmissions Turbocharger

Market data tires

PLT RT Europe PLT RT NAFTA CVT OE Europe CVT OE NAFTA CVT RT Europe CVT RT NAFTA

Continental

PLT tire CV tire CT organic sales growth 9% 6% 69% 33% 16% 25% 10% 29% 25% 15% 16% 15% 10% 33% -18% 14% 28% 81% 25% 30% 33% 11% 9% 10% 8% 27% -17% 21% 31% 86% 23% 26% 33% 6% 1% 49% 51% 14% 16% 6% 18% 22% 6% -1% 45% 54% 5% 11% 8% 13% 20% 10% 8% 9% 8% 25% -14% 27% 30% 71% 24% 29% 32% 7% 10% 8% 6% 22% -13% 24% 28% 62% 21% 26% 29% 4% -2% 36% 56% -1% 5% 7% 12% 16%

Q1/12

-10% -5% -3% 31% -27% -10% 3% 0% 4% -3% 18% 5% 9% 11% 9% 16% 15% 52% 2% 4% 29%

H1/12 9M/12

-4% 22% 5% 8% 12% 7% 8% 8% 41% -4% -4% 25% -11% -3% -5% 25% -26% -9% 0% 2% 3% -5% 19% 4% 6% 11% 0% 4% 6% 52% -9% -7% 19% -10% -3% -7% 14% -19% -6% 0% 2% 2%

FY 12 Q1/13 H1/13

-8% -2% -4% 2% -14% -2% 0% 2% 2% -5% 17% 4% 6% 11% -4% 4% 6% 57% -10% -7% 16% -11% 1% -6% -1% 13% -24% -4% 2% 51% -11% -10% 4% 296% -10% -2% -3% -12% 5% -1% -6% -4% -2% -6% 3% -2% 1% 14% -24% -2% 7% 57% -8% -7% 7% 207% -4% 0% 0% -13% 8% -2% -1% 2% 0% EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 35 | © Continental AG

Back-up

Corporation Highlights H1 2013

Sales EBITDA EBIT NIAT EPS 4) 3) Capex 4) Increase of 0.4% to €16,574.3 mn (PY: €16,506.2 mn); organic sales increased 0.9% Decrease of 0.5% to €2,479.3 mn (PY: €2,492.6 mn) Decrease to €1,630.6 mn (PY: €1,653.4 mn) Adj. EBIT 1) decrease to €1,776.9 mn (10.8% adj. EBIT 1) PPA 2) effect €193.8 mn; total special effects +€47.5 mn margin) Increase to €1,141.9 mn (PY: €1,003.2 mn) EPS of €5.71 (PY: €5.02) EPS before PPA 2) €6.41 (PY: €5.81 before PPA 2) ) Capex increased to €867.0 mn (PY: €828.8 mn); capex ratio 5.2% of sales; Capex to depreciation coverage 1.0x (1.3x ex PPA 2) ) R&D 4) Cash flow Expenses for research and development increased by 9.6% to €987.0 mn (PY: €900.5 mn); R&D ratio 6.0% of sales (PY: 5.5%) Operating cash flow down by €363.7 mn to €624.4 mn; free cash flow -€88.2 mn 1) 2) 3) 4) Net debt Net indebtedness up by 13.0% to €6,011.9 mn vs. YE 2012 due to higher dividend; Liquidity and undrawn credit lines amounted to €4,548.6 mn Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) Amortization of intangibles from PPA Attributable to the shareholders of the parent IAS 19 (rev. 2011) applied EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 36 | © Continental AG

Back-up

Key Historical Credit Metrics – IAS 19 (rev. 2011) applied

(mn €) 1) Cash Flow Statement Adjusted EBITDA

Reported EBITDA 2008 3,001 2,771 2009 2,354 1,591 2010 3,662 3,588 2011 4,247 4,228 2012 LTM Q2 13 4,822 4,969 4,823 4,955

Net cash interest paid Tax paid Change in net working capital 3) Other 4)

Cash flow arising from operating activites Cash flow arising from investing activities

- thereof capex in PPE and intangibles

Cash flow before financing activities Balance Sheet

Cash and cash equivalents Derivative instruments and interest-bearing investments Total indebtedness -519 -282 275 -360

1,885 -1,256

-1,621

629

1,569 64 12,117 -727 -205 595 1,173

2,427 -787

-911

1,640

1,713 104 10,713 -703 -493 -497 -46

1,849 -1,282

-1,324

567

1,471 202 8,991 -662 -466 -556 -256

2,289 -1,798

-1,813

491

1,541 249 8,562 -575 -684 564 -490

3,785 -2,132

-2,081

1,653

2,397 536 8,253 -522 -763 115 -364

3,421 -1,983

-2,098

1,438

1,579 485 8,076

Net Indebtedness Credit Ratios 10,484 8,896 7,317 6,772 5,320 6,012 Net indebtedness / adj. EBITDA

3.5x

3.8x

2.0x

1.6x

1.1x

1.2x

Net cash interest paid coverage (Ratio)

5) 1) 2) 3) 4) 5) 6)

5.8x

3.2x

5.2x

6.4x

8.4x

9.2x

Amounts shown may contain rounding differences Adjusted EBITDA from 2009 on as defined in syndicated loan but IAS 19 (rev. 2011) not applied in 2012 Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes Iincludes dividends received, income from at-equity accounted 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 Adj. EBITDA to net cash interest paid For 2012 & 2013 only EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 37 | © Continental AG

Back-up

Capex and Depreciation H1 2013 & EPS Breakdown

Capex, Depreciation & PPA 1) (mn €)

619 574

4.2%

829

5.0%

618 867

5.2%

655

EPS ex PPA 1) incl. Der. Instr.

2) H1/12 vs. H1/13 5.81

6.41

0.70

0.79

0.37

5.72

4.65

218 222 194

2011 2012 2013 Capex (PPE), percentage of sales (%) Depreciation, w/o PPA 1) PPA 1) 1) 2) 3) Amortization of intangibles from PPA Der. Instr. = Derivative instruments Assuming corporate tax rate of 28% EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 38 | © Continental AG H1/12 H1/13 2) EPS before Der. Instr. & PPA 1) 3) 1) PPA after tax

Back-up

Automotive Group Financials – Chassis & Safety

Sales increased by 3.7% before consolidation and FX effects EBITDA 1) decreased by €15.0 mn to €492.1 mn (-3.0%) Adj. EBIT 2) decreased by €22.9 mn to €343.5 mn (adj. EBIT 2) margin 9.4%) EBIT 1) decreased by €21.8 mn to €318.0 mn (EBIT 1) margin 8.7%) PPA effect in H1 2013: €26.4 mn Special effects in H1 2013: €0.3 mn Chassis & Safety H1 2013 Sales (mn €) 1) EBITDA margin 2) Adj. EBIT margin 3,593.3

3,653.7

3,220.5

15.5% 14.1% 10.2% 13.5% 9.4% 1) 2) IAS 19 (rev. 2011) applied for 2012 & 2013 Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013. Refer to Fact Sheets for further details EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 39 | © Continental AG 2011 2012 2013

Back-up

Automotive Group Financials – Powertrain

Sales decreased by 2.0% before consolidation and FX effects EBITDA 1) increased by €10.2 mn to €327.4 mn (+3.2%) Adj. EBIT 2) decreased by €19.1 mn to €151.1 mn (adj. EBIT 2) margin 4.8%) EBIT 1) increased by €27.6 mn to €110.4 mn (EBIT 1) margin 3.5%) PPA effect in H1 2013: €66.5 mn Special effects in H1 2013: €24.4 mn Powertrain H1 2013 Sales (mn €) 1) EBITDA margin 2) Adj. EBIT margin 2,860.1

7.5% 3,198.7

9.9% 5.3% 3,132.6

10.5% 4.8% 1) 2) IAS 19 (rev. 2011) applied for 2012 & 2013 Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013. Refer to Fact Sheets for further details EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 40 | © Continental AG 2011 2012 2013

Back-up

Automotive Group Financials – Interior

Sales increased by 3.0% before consolidation and FX effects EBITDA 1) increased by €10.6 mn to €422.2 mn (+2.6%) Adj. EBIT 2) decreased by €4.0 mn to €286.8 mn (adj. EBIT 2) margin 8.6%) EBIT 1) increased by €12.9 mn to €208.2 mn (EBIT 1) margin 6.2%) PPA effect in H1 2013: €96.0 mn Special effects in H1 2013: €19.6 mn Sales (mn €) Interior H1 2013 3,043.8

12.2% 3,275.3

12.6% 8.9% 3,343.4

12.6% 8.6% 1) 2) IAS 19 (rev. 2011) applied for 2012 & 2013 Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013. Refer to Fact Sheets for further details EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 41 | © Continental AG 2011 2012 2013

Back-up

Rubber Group Financials – Tires

Sales decreased by 0.4% before consolidation and FX effects EBITDA 1) decreased by €6.8 mn to €992.4 mn (-0.7%) Adj. EBIT 2) decreased by €14.1 mn to €806.8 mn (adj. EBIT 2) margin 17.4%) EBIT 1) decreased by €21.7 mn to €805.5 mn (EBIT 1) margin 17.4%) Special effects in H1 2013: €1.6 mn Sales (mn €) Tires H1 2013 1) EBITDA margin 2) Adj. EBIT margin 4,718.5 4,641.2 4,083.4 21.2% 21.4% 17.8% 17.4% 17.4% 1) 2) IAS 19 (rev. 2011) applied for 2012 & 2013 Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013. Refer to Fact Sheets for further details EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 42 | © Continental AG 2011 2012 2013

Back-up

Tires – Commercial Vehicle Tires

Sales decreased by 0.4% EBIT 1) increased by €2.1 mn to €109.0 mn (EBIT 1) margin 11.4%) Commercial Vehicle Tires H1 2013 Sales (mn €) 1) EBIT margin 964.4

960.2

860.7

11.1% 11.4% 3.9% 2011 2012 2013 1) IAS 19 (rev. 2011) applied for 2012 & 2013 EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 43 | © Continental AG

Back-up

Tires – Commercial Vehicle Tire Demand sees some Recovery

20% Replacement Tire Development for Truck Tires Europe 20% Replacement Tire Development for Truck Tires NAFTA 10% 10% 0% 0% -10% -10% -20% -30% -20% -40% -30% Truck tire replacement (YOY chg. monthly) 1) 2) BAG = Bundesamt für Güterverkehr ATA = American Trucking Association EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 44 | © Continental AG Truck tire replacement (YOY chg. monthly) 2) ATA monthly (adj.)

Back-up

Rubber Group Financials – ContiTech

Sales increased by 0.1% before consolidation and FX effects EBITDA 1) increased by €5.1 mn to €293.4 mn (+1.8%) Adj. EBIT 2) decreased by €2.0 mn to €239.4 mn (adj. EBIT 2) margin 12.9%) EBIT 1) decreased by €2.5 mn to €236.9 mn (EBIT 1) margin 12.2%) Special effects in H1 2013: €0.8 mn ContiTech H1 2013 Sales (mn €) 1) EBITDA margin 2) Adj. EBIT margin 1,940.3

1,802.1

1,854.6

15.5% 15.5% 15.1% 13.0% 12.9% 1) 2) IAS 19 (rev. 2011) applied for 2012 & 2013 Before amortization of intangibles from PPA, consolidation and special effects; applying IAS 19 (rev. 2011) for 2012 & 2013. Refer to Fact Sheets for further details EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 45 | © Continental AG 2011 2012 2013

Fact Sheets 2011 – H1 2013

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 46 | © Continental AG

Fact Sheets

Quarterly Sales Analysis

Sales (mn €) C&S Powertrain Interior Tires ContiTech Other / Consolidation Continental Corporation Changes Y-o-Y in % C&S Powertrain Interior Tires ContiTech Continental Corporation Q1

1,618.7

1,396.8

1,530.0

1,981.3

886.0

-67.2

7,345.6

1,601.8

1,463.3

1,513.8

2,102.1

916.1

-64.5

7,532.6

2011 Q3

1,595.4

1,517.4

1,523.7

2,245.0

901.0

-68.1

7,714.4

1,694.9

1,464.5

1,543.2

2,389.3

880.0

-59.6

7,912.3

6,510.8

5,842.0

6,110.7

8,717.7

3,583.1

-259.4

30,504.9

1,812.4

1,626.2

1,660.9

2,366.8

923.0

-69.8

8,319.5

1,780.9

1,572.5

1,614.4

2,351.7

931.6

-64.4

8,186.7

2012 Q3

1,725.0

1,484.8

1,582.3

2,484.9

924.0

-66.7

8,134.3

1,734.2

1,451.3

1,576.6

2,461.6

933.2

-61.2

8,095.7

7,052.5

6,134.8

6,434.2

9,665.0

3,711.8

-262.1

32,736.2

12.0

16.4

8.6

19.5

4.2

13.3

11.2

7.5

6.6

11.9

1.7

8.7

2012 Q3

8.1

-2.1

3.8

10.7

2.6

5.4

2.3

-0.9

2.2

3.0

6.0

2.3

8.3

5.0

5.3

10.9

3.6

7.3

1,792.9

1,526.1

1,620.1

2,222.2

941.6

-69.6

8,033.3

1,860.8

1,606.5

1,723.3

2,419.0

998.7

-67.3

8,541.0

2013 Q3 2013 Q3 Q1

-1.1

-6.2

-2.5

-6.1

2.0

-3.4

4.5

2.2

6.7

2.9

7.2

4.3

Q4 Q4 FY FY

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 47 | © Continental AG

Fact Sheets

Quarterly EBITDA Analysis – IAS 19 (rev. 2011) applied for 2012 & 2013

EBITDA (mn €) C&S Powertrain Interior Tires ContiTech Other / Consolidation Continental Corporation EBITDA margin in % C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y in % C&S Powertrain Interior Tires ContiTech Continental Corporation Q1

251.3

120.6

174.3

356.5

140.9

-15.1

1,028.5

246.7

93.7

196.3

372.2

138.1

-2.8

1,044.2

15.5

8.6

11.4

18.0

15.9

14.0

15.4

6.4

13.0

17.7

15.1

13.9

2011 Q3

243.3

140.1

189.2

369.6

113.5

-18.6

1,037.1

2011 Q3

15.3

9.2

12.4

16.5

12.6

13.4

241.0

130.3

199.0

428.2

122.5

-2.8

1,118.2

14.2

8.9

12.9

17.9

13.9

14.1

982.3

484.7

758.8

1,526.5

515.0

-39.3

4,228.0

15.1

8.3

12.4

17.5

14.4

13.9

249.8

164.2

199.4

468.5

140.3

-18.3

1,203.9

257.3

153.0

212.2

530.7

148.0

-12.5

1,288.7

13.8

10.1

12.0

19.8

15.2

14.5

-0.6

36.2

14.4

31.4

-0.4

17.1

14.4

9.7

13.1

22.6

15.9

15.7

4.3

63.3

8.1

42.6

7.2

23.4

2012 Q3

237.3

125.0

194.0

522.4

144.2

-24.6

1,198.3

2012 Q3

13.8

8.4

12.3

21.0

15.6

14.7

2012 Q3

-2.5

-10.8

2.5

41.3

27.0

15.5

263.5

166.8

247.7

483.5

126.4

-10.2

1,277.7

1,007.9

609.0

853.3

2,005.1

558.9

-65.6

4,968.6

15.2

11.5

15.7

19.6

13.5

15.8

9.3

28.0

24.5

12.9

3.2

14.3

9.9

13.3

20.7

15.1

15.2

2.6

25.6

12.5

31.4

8.5

17.5

13.5

10.4

12.5

20.7

14.4

14.6

-3.2

1.4

-2.0

-3.1

-2.9

241.8

158.9

202.1

459.2

135.9

-28.5

1,169.4

250.3

168.5

220.1

533.2

157.5

-19.7

1,309.9

2013 Q3 2013 Q3 Q2

13.5

10.5

12.8

22.0

15.8

15.3

-2.7

10.1

3.7

0.5

6.4

1.6

2013 Q3 Q4 Q4 Q4 FY FY FY

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 48 | © Continental AG

6) C&S Powertrain Interior Tires ContiTech Other / Consolidation Continental Corporation

Adjusted EBIT margin in % C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y in % C&S Powertrain Interior Tires ContiTech Continental Corporation

Fact Sheets

Quarterly Analysis of Adjusted EBIT

– IAS 19 (rev. 2011) applied

2012 Q3 Q4 FY 2013 Q3 Q1

180.1

89.7

142.7

379.3

116.8

-19.9

888.7

9.9

5.5

8.6

16.0

12.7

10.7

186.3

80.5

148.1

441.6

124.6

-14.7

966.4

10.5

5.1

9.2

18.8

13.4

11.8

2012 Q3 Q4 FY Q1

168.0

58.6

124.4

366.8

109.4

-31.0

796.2

9.4

3.8

7.7

16.5

12.2

10.0

-6.7

-34.7

-12.8

-3.3

-6.3

-10.4

175.5

92.5

162.4

440.0

130.0

-19.7

980.7

9.4

5.8

9.4

18.2

13.6

11.5

-5.8

14.9

9.7

-0.4

4.3

1.5

2013 Q3 2013 Q3 Q4 Q4 Q4 FY FY FY

1) Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 49 | © Continental AG

Fact Sheets

Quarterly EBIT Analysis – IAS 19 (rev. 2011) applied for 2012 & 2013

EBIT (mn €) C&S Powertrain Interior Tires ContiTech Other / Consolidation Continental Corporation EBIT margin in % C&S Powertrain Interior Tires ContiTech Continental Corporation Changes Y-o-Y in % C&S Powertrain Interior Tires ContiTech Continental Corporation Q1

172.0

13.0

71.8

275.7

116.9

-15.5

633.9

10.6

0.9

4.7

13.9

13.2

8.6

167.8

-15.9

94.3

290.0

114.1

-3.2

647.1

10.5

-1.1

6.2

13.8

12.5

8.6

2011 Q3

163.9

29.5

84.7

287.1

89.3

-18.8

635.7

2011 Q3

10.3

1.9

5.6

12.8

9.9

8.2

158.2

4.7

80.4

342.9

96.8

-2.8

680.2

661.9

31.3

331.2

1,195.7

417.1

-40.3

2,596.9

9.3

0.3

5.2

14.4

11.0

8.6

10.2

0.5

5.4

13.7

11.6

8.5

166.8

45.8

92.8

384.3

115.8

-18.3

787.2

9.2

2.8

5.6

16.2

12.5

9.5

-3.0

252.3

29.2

39.4

-0.9

24.2

173.0

37.0

102.5

442.9

123.6

-12.8

866.2

9.7

2.4

6.3

18.8

13.3

10.6

3.1

332.7

8.7

52.7

8.3

33.9

2012 Q3

153.3

5.5

81.1

432.6

118.9

-24.6

766.8

2012 Q3

8.9

0.4

5.1

17.4

12.9

9.4

2012 Q3

-6.5

-81.4

-4.3

50.7

33.1

20.6

179.6

-40.0

137.1

406.7

95.3

-11.5

767.2

672.7

48.3

413.5

1,666.5

453.6

-67.2

3,187.4

10.4

-2.8

8.7

16.5

10.2

9.5

13.5

-951.1

70.5

18.6

-1.5

12.8

9.5

0.8

6.4

17.2

12.2

9.7

1.6

54.3

24.8

39.4

8.8

22.7

155.3

52.1

95.7

365.2

107.7

-28.6

747.4

8.7

3.4

5.9

16.4

11.4

9.3

-6.9

13.8

3.1

-5.0

-7.0

-5.1

162.7

58.3

112.5

440.3

129.2

-19.8

883.2

8.7

3.6

6.5

18.2

12.9

10.3

-6.0

57.6

9.8

-0.6

4.5

2.0

2013 Q3 2013 Q3 2013 Q3 Q4 Q4 Q4 FY FY FY

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 50 | © Continental AG

Fact Sheets

Consolidated Statement of Income – IAS 19 (rev. 2011) applied for 2012 & 2013

(mn € ) H1 2011 H1 2012 H1 2013 Sales

Cost of sales

Gross margin on sales

Research and development expenses Selling and logistics expenses Administrative expenses Other income and expenses Income from at-equity accounted investees Other income from investments

Earnings before interest and taxes

Interest income ) Interest expense 1

Net interest expense Earnings before taxes

Income tax expense

Net income

Non-controlling interests

Net income attributable to the shareholders of the parent 14,878.2

-11,723.6

3,154.6

-823.9

-694.5

-318.3

-78.1

42.6

-1.4

1,281.0

12.9

-331.7

-318.8

962.2

-244.4

717.8

-34.8

683.0

16,506.2

-12,931.3

3,574.9

-900.5

-768.5

-322.0

32.1

29.9

7.5

1,653.4

13.4

-234.6

-221.2

1,432.2

-396.7

1,035.5

-32.3

1,003.2

16,574.3

-12,776.1

3,798.2

-987.0

-818.7

-352.1

-24.7

14.8

0.1

1,630.6

14.0

-374.4

-360.4

1,270.2

-83.8

1,186.4

-44.5

1,141.9

Basic earnings per share in EUR Diluted earnings per share in EUR 3.42

3.42

5.02

5.71

1 ) 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. Interest effects from pension obligations and from other long-term employee benefits as well as from pension funds are also included.

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 51 | © Continental AG

Q2 2011 7,532.6

-5,976.5

1,556.1

-418.5

-353.0

-162.1

-3.3

26.8

1.1

647.1

6.5

-156.7

-150.2

496.9

-164.2

332.7

-17.9

314.8

1.57

Q2 2012 8,186.7

-6,388.8

1,797.9

-454.7

-389.5

-162.8

52.2

17.3

5.8

866.2

5.9

-162.1

-156.2

710.0

-175.0

535.0

-14.7

520.3

2.60

Q2 2013 8,541.0

-6,531.8

2,009.2

-487.2

-412.2

-180.3

-58.5

7.6

4.6

883.2

8.0

-245.3

-237.3

645.9

77.2

723.1

-22.4

700.7

3.50

Fact Sheets

Consolidated Statement of Financial Position – Assets

(mn €)

Goodwill Other intangible assets Property, plant and equipment Investment property Investments in at-equity accounted investees Other investments Deferred tax assets Defined benefit assets Long-term derivative instruments and interest-bearing investments Other long-term financial assets Other long-term assets

Non-current assets

Inventories Trade accounts receivable Other short-term financial assets Other short-term assets Income tax receivables Short-term derivative instruments and interest-bearing investments Cash and cash equivalents Assets held for sale

Current assets Total assets

Note: IAS 19 (rev. 2011) applied for 2012 & 2013

June 30, 2013

5,605.7

730.6

7,556.5

19.4

450.9

6.9

1,102.7

2.1

Dec. 31, 2012

5,622.2

945.1

7,391.0

19.8

376.5

6.9

850.4

2.0

261.2

22.3

12.8

15,771.1

3,160.3

5,922.1

342.9

727.7

81.4

223.6

1,578.9

36.6

12,073.5

27,844.6

433.9

23.8

14.1

15,685.7

2,998.7

4,993.3

321.8

661.4

77.9

102.3

2,397.2

211.8

11,764.4

27,450.1

June 30, 2012

5,727.7

1,169.6

6,866.8

19.7

484.6

6.6

635.2

14.7

394.3

29.2

12.4

15,360.8

3,295.1

5,815.6

315.6

720.3

183.5

84.0

1,401.7

45.2

11,861.0

27,221.8

EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 52 | © Continental AG

Fact Sheets

Consolidated Statement of Financial Position – Total Equity and Liabilities

(mn €)

Subscribed capital Capital reserves Retained earnings Other comprehensive income

Equity attributable to the shareholders of the parent

Non-controlling interests

Total equity

Provisions for pension liabilities and similar obligations Deferred tax liabilities Long-term provisions for other risks and obligations Long-term portion of indebtedness Other long-term financial liabilities Other long-term liabilities

Non-current liabilities

Trade accounts payable Income tax payables Short-term provisions for other risks and obligations Indebtedness Other short-term financial liabilities Other short-term liabilities Liabilities held for sale

Current liabilities Total equity and liabilities

Note: IAS 19 (rev. 2011) applied for 2012 & 2013

June 30, 2013

512.0

4,155.6

4,754.1

-978.6

8,443.1

333.2

8,776.3

2,471.1

288.8

290.4

3,274.2

12.4

55.5

6,392.4

4,376.2

625.8

593.8

4,801.4

1,342.9

933.7

2.1

12,675.9

27,844.6

Dec. 31, 2012

512.0

4,155.6

4,062.2

-950.8

7,779.0

377.4

8,156.4

2,583.1

269.2

308.5

4,181.0

13.1

52.7

7,407.6

4,344.6

713.3

597.0

4,072.3

1,406.9

751.2

0.8

11,886.1

27,450.1

June 30, 2012

512.0

4,155.6

3,160.2

-359.1

7,468.7

355.9

7,824.6

1,892.0

326.3

363.1

6,095.6

7.8

53.0

8,737.8

4,227.3

764.7

756.7

2,660.3

1,367.8

882.6

—

10,659.4

27,221.8

Fact Sheets

Consolidated Statement of Cash Flows

(mn €) Net income

Income tax expense Net interest expense

EBIT

Interest paid Interest received Income tax paid Dividends received Depreciation, amortization and impairment Income from at-equity accounted and other investments, incl. impairment Gains from the disposal of assets, companies and business operations Other non-cash items Changes in inventories trade accounts receivable trade accounts payable pension and similar obligations other assets and liabilities

Cash flow arising from operating activities

Proceeds on the disposal of property, plant and equipment, and intangible assets Capital expenditure on property, plant and equipment, and software Capital expenditure on intangible assets from development projects and miscellaneous Proceeds on the disposal of companies and business operations Acquisition of companies and business operations

Cash flow arising from investing activities Cash flow before financing activities (free cash flow)

Change in indebtedness Step acquisitions Dividends paid Dividends paid and repayment of capital to non-controlling interests Cash and cash equivalents arising from first consolidation of subsidiaries

Cash flow arising from financing activities Change in cash and cash equivalents

Cash and cash equivalents at the beginning of the reporting period Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the reporting period

Note: IAS 19 (rev. 2011) applied for 2012 & 2013

January 1 to June 30 2013 2012 1,186.4

83.8

360.4

1,630.6

-239.4

15.8

-420.2

20.6

848.7

-14.9

-84.2

-2.4

1,035.5

396.7

221.2

1,653.4

-289.6

13.2

-340.7

33.7

839.2

-37.4

-2.2

-3.5

-194.6

-928.8

61.3

-9.2

-58.9

624.4

11.8

-866.7

-15.7

248.5

-90.5

-712.6

-270.3

-406.7

64.2

-32.0

-233.2

988.1

13.1

-828.0

-36.8

0.0

-10.0

-861.7

-88.2

-199.3

-48.5

-450.0

-19.7

0.4

-717.1

-805.3

2,397.2

-13.0

1,578.9

126.4

57.3

-18.1

-300.0

-31.6

4.8

-287.6

-161.2

1,541.2

21.7

1,401.7

0.7

-129.8

-55.0

-6.7

-179.5

665.8

7.0

-435.4

-8.4

-1.8

-4.3

-442.9

Second Quarter 2013 2012 723.1

-77.2

237.3

883.2

-57.3

8.6

-216.0

5.0

426.7

-12.2

-1.9

—

535.0

175.0

156.2

866.2

-85.3

5.7

-205.7

6.2

422.5

-23.1

-1.4

-1.8

-115.6

311.0

-40.2

-16.5

-390.0

732.0

4.0

-440.1

-17.3

— -4.5

-457.9

222.9

-41.7

-43.9

-450.0

-18.7

—

-554.3

274.1

120.5

-7.7

-300.0

-9.7

—

-196.9

-331.4

1,962.7

-52.4

1,578.9

77.2

1,297.9

26.6

1,401.7

Fact Sheets

Q2 2013 Results Reported & Adjusted (mn €) – by Division

EBIT

in % of sales

Amortization of intangible assets from PPA Chassis & Safety 2012 2013 173.0

9.7%

162.7

8.7%

13.3

Total special effects Total consolidation effects 0.0

0.0

-0.3

-0.2

Powertrain 2012 37.0

2.4%

44.3

-0.8

0.0

2013 58.3

3.6%

33.3

1.4

-0.5

Interior 2012 102.5

6.3%

51.6

-4.9

-1.1

2013 112.5

6.5%

48.1

0.0

1.8

Total consolidation & special effects 0.0

-0.5

-0.8

0.9

Adjusted operating result (adj. EBIT) 1)

in % of adjusted sales

186.3

10.5%

175.5

9.4%

80.5

5.1%

92.5

5.8% The prior year figures have been adjusted according to IAS 19 rev. 2011. 1) Before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects.

-6.0

1.8

148.1

9.2%

162.4

9.4%

Tires 2012 2013 442.9

18.8%

440.3

18.2%

1.4

1.0

-2.7

0.0

-1.6

0.3

-2.7

-1.3

441.6

18.8%

440.0

18.2%

ContiTech 2012 2013 123.6

13.3%

129.2

12.9%

0.7

1.2

0.3

0.0

0.1

-0.5

0.3

-0.4

124.6

13.4%

130.0

13.6%

Cons./Corr.

2012 2013 -12.8

-19.8

-0.1

-1.8

0.0

-1.8

-14.7

0.1

0.0

-19.7

Corporation 2012 2013 866.2

10.6%

883.2

10.3%

111.2

97.0

-9.9

-1.1

-0.4

0.9

-11.0

0.5

966.4

11.8%

980.7

Fact Sheets

H1 2013 Results Reported & Adjusted (mn €) – by Division

EBIT

in % of sales

Amortization of intangible assets from PPA Chassis & Safety 2012 2013 339.8

9.5%

318.0

8.7%

26.6

26.4

Powertrain 2012 2013 82.8

2.6%

110.4

3.5%

88.2

66.5

Interior 2012 2013 195.3

6.0%

208.2

6.2%

102.8

96.0

Total special effects Total consolidation effects 0.0

0.0

-0.3

-0.6

-0.8

0.0

-24.4

-1.4

-4.9

-2.4

-19.6

2.2

Total consolidation & special effects 0.0

-0.9

-0.8

-25.8

Adjusted operating result (adj. EBIT) 1)

in % of adjusted sales

366.4

10.2%

343.5

9.4%

170.2

5.3%

151.1

4.8% The prior year figures have been adjusted according to IAS 19 rev. 2011. 1) Before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects.

-7.3

290.8

8.9%

-17.4

286.8

8.6%

Tires 2012 2013 827.2

17.5%

805.5

17.4%

2.7

2.1

-9.0

0.0

-1.6

0.8

-9.0

-0.8

820.9

17.4%

806.8

17.4%

ContiTech 2012 2013 239.4

12.9%

236.9

12.2%

1.3

2.7

0.7

0.0

0.8

-1.0

0.7

-0.2

241.4

13.0%

239.4

12.9%

Cons./Corr.

2012 2013 -31.1

-48.4

0.0

0.1

Corporation 2012 2013 1,653.4

10.0%

1,630.6

9.8%

221.6

193.8

-3.5

0.0

-3.5

-34.6

-2.4

0.0

-17.5

-2.4

-47.5

0.0

-2.4

-19.9

-47.5

-50.7

1,855.1

11.2%

1,776.9

Fact Sheets

Q2 & H1 2013 Results Reported & Adjusted (mn €) – by Group

Sales EBIT

in % of sales

Amortization of intangible assets from PPA Total special effects Total consolidation effects Automotive 2012 2013 4,936.7

312.6

6.3%

109.2

-5.7

-1.1

5,159.5

333.5

6.5%

94.7

1.1

Rubber 2012 3,256.4

566.5

17.4%

2.0

-2.4

0.0

Q2 2012/2013 2013 3,392.0

569.5

16.8%

2.3

-1.5

-0.2

Total consolidation & special effects -6.8

2.2

-2.4

-1.7

Adjusted operating result (adj. EBIT) 1)

in % of adjusted sales

415.0

8.4%

430.4

8.3%

566.1

17.4%

570.1

17.0% The prior year figures have been adjusted according to IAS 19 rev. 2011. 1) Before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects.

Cons./Corr.

2012 2013 -6.4

-10.5

-12.9

-19.8

0.0

-1.8

0.0

-1.8

-14.7

0.0

-19.8

Corporation 2012 2013 8,186.7

8,541.0

866.2

10.6%

883.2

10.3%

111.2

97.0

Automotive 2012 2013 10,007.5 10,070.7

617.9

6.2%

636.6

6.3%

217.6

188.9

-9.9

-1.1

-11.0

966.4

11.8%

-0.4

0.9

0.5

980.7

11.5%

-5.7

-2.4

-8.1

827.4

8.3%

-44.3

0.2

-44.1

781.4

7.8%

YTD January - June 2012/2013 Rubber 2012 6,511.8

1,066.6

16.4%

2013 6,524.0

1,042.4

16.0%

Cons./Corr.

2012 2013 -13.1

-20.4

-31.1

-48.4

Corporation 2012 2013 16,506.2 16,574.3

1,653.4

10.0%

1,630.6

9.8%

4.0

4.9

0.0

221.6

193.8

-8.3

0.0

-0.8

-0.2

-8.3

-1.0

1,062.3

16.3%

1,046.3

16.3%

-3.5

0.0

-3.5

-34.6

-2.4

0.0

-2.4

-50.8

-17.5

-2.4

-19.9

1,855.1

11.2%

-47.5

0.0

-47.5

1,776.9

Back-up

Shareholder Structure Since September 25, 2012

Shareholder Structure as at Dec. 31, 2010

M.M. Warburg & CO KGaA, 16.48% B. Metzler seel. Sohn Co. Holding AG, 16.48% Free Float, 24.87% Schaeffler Group, 42.17%

Shareholder Structure as at Dec. 31, 2011

M.M. Warburg & CO KGaA, 5.19% B. Metzler seel. Sohn Co. Holding AG, 5.19% Schaeffler Group, 49.90% Free Float, 39.72%

Shareholder Structure since Sept. 25, 2012

Schaeffler Group, 49.90% Free Float, 50.10%

Back-up

Rating of S&P and Moody’s Since 2000

Credit Rating Standard & Poor’s:

Before Siemens VDO

Investment Grade

BBB+ BBB+ BBB BBB BBB SACP 1) : BBB

Non-Investment Grade

05/19/00 10/31/01 08/06/04

Credit Rating Moody’s:

Before Siemens VDO 11/16/07 Baa1 Baa2 Baa1 BB BB BB B+ B+ B 09/26/08 01/27/09 08/13/09 05/18/10 07/20/11 05/16/12 05/24/13

Investment Grade

Baa2 Baa3 Ba1

Non-Investment Grade

Ba2 Ba2 Ba3 Ba3 B1 05/19/00 11/15/01 01/04/05 02/26/08 11/07/08 12/18/08 02/23/09 06/02/09 08/14/09 04/05/11 09/28/12 1) S&P: “The SACP is not a rating but a rating component that reflects our opinion of a company’s creditworthiness absent any extraordinary intervention from its parent“. EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 59 | © Continental AG

References

Useful Links and References

Continental Investor Relations Website Annual and Interim Reports Fact Book Fiscal Year 2012 Investor Relations Events and Presentations http://www.continental-ir.com

http://www.continental corporation.com/www/portal_com_en/themes/ir/financial_reports/ http://www.continental corporation.com/www/portal_com_en/themes/ir/financial_reports/ http://www.continental-corporation.com/www/portal_com_en/themes/ir/events// Sustainability at Continental (Presentation and Fact Sheet for Investors) Corporate Social Responsibility Report http://www.continental-ir.com

http://www.continental-sustainability.com

Corporate Governance Principles Continental Share 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/ Continental Bonds and Rating EDMR – Equity and Debt Markets Relations Baader Bank Roadshow Munich, September 27, 2013 60 | © Continental AG http://www.continental-corporation.com/www/portal_com_en/themes/ir/bonds/