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Continental AG Earnings Release 2014

Mar 5, 2015

83_ip_2015-03-05_021fb4f1-aaa8-4c80-9dd9-9aa1cbd986eb.pdf

Earnings Release

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Preliminary FY 2014 Results Hanover – March 5, 2015

http://www.continental-ir.com Wolfgang Schaefer – CFO Ticker: CON ADR-Ticker: CTTAY

AGENDA

1 Corporation Highlights 3
2 Automotive Group 13
3 Rubber Group 19
4 Indebtedness and Cash Flow 25
5 Outlook 2015 30
6 Back-up & Fact Sheets 2012 -
2014		 39

1) Corporation Highlights Most Important KPIs FY 2014

  • › Sales up by 4% to €34.5 bn
  • › Adj. EBIT1 up by 4% to €3.9 bn; adj. EBIT1 margin at 11.3% up 10 bps (PPA and special effects -€517 mn)
  • › NIAT2 up by 24% to €2.4 bn
  • › Free cash flow amounted to €2.0 bn up by 11%
  • › Net indebtedness down to €2.8 bn; Gearing ratio at 26%; Equity ratio at 37%
  • › Sustained value creation: trailing ROCE3 up by 60 bps to 20.0%
  • › Other topics:
  • › €30 bn life-time-sales acquired in the Automotive Group in 2014
  • › Veyance acquisition closed on January 30, 2015
  • › Dividend will increase by 30% to €3.254

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 4 Topic for approval of the Annual Shareholders' Meeting (ASM )on Apr. 30, 2015

1) Corporation Highlights Divisional Highlights FY 2014

› Chassis & Safety: 9.4% adj. EBIT1 margin (PY: 9.5%); organic sales up by 5% (Q4/14: +5%) mainly due to strong growth in ADAS (+47% unit sales) and electric stability control (ESC)

  • › Powertrain: 4.1% adj. EBIT1 margin (PY: 5.1%); organic sales increased by 3% (Q4/14: +1% ); adj. EBIT1 margin excl €86 mn provisions for legacy contracts and before HEV was 7.5% in 2014; 2015 targets confirmed (5% growth and 8% adj. EBIT margin before HEV)
  • › Interior: 10.1% adj. EBIT1 margin (PY 8.9%); organic sales increased by 9% (Q4/14: +9%); adj. EBIT1 margin was driven by IC turnaround; top line growth by BS and ID sales

› Automotive Group: Organic sales increased by 6% in 2014 (Q4/14: +5%); adj. EBIT1 margin increased by 10 bps to 8.1%; Life-time-sales acquired totaled €30 bn for 2014 (1.4x 2014 sales )

› Tires: Adj. EBIT1 margin increased to 19.4% (PY 18.7%) benefitting from lower raw material costs (2014: ~€190 mn), strict cost management and solid price mix (was balanced in 2014); volumes up by 3% in 2014 (Q4/14: -4% for PC & LT tire and -3% for truck tire volumes); FX did impact sales in 2014 with -2% (Q4/14: +2%)

PC & LT tire replacement demand further stabilized in Europe and totaled +2% in 2014 (Q4/14: -8%) and further recovered in NAFTA to an increase of 6% in 2014 (Q4/14: +6%)

› ContiTech: Adj. EBIT1 margin down by 80 bps to 11.3%; organic sales +1% (Q4/14: +0.5%)

› Rubber Group: Organic sales increased by 2% in 2014 (Q4/14 :-1%); adj. EBIT1 margin increased by 30 bps to 17.2% (PY: 16.9%)

Automotive Group

Rubber Group

1 Before amortization of intangibles from PPA, consolidation and special effects

1 Before amortization of intangibles from PPA, consolidation and special effects

1) Corporation Highlights Growth Profile of the Corporation FY 2014

1 According to IMF (WEO Update January 2015)

1) Corporation Highlights Strong Focus on Costs

Cost comparison 2008 to 2014

  • › Cost of sales declined by 550 bps
  • › R&D expenses as % of sales maintained on high level and increased in absolute terms to €2.14 bn; about €1.84 bn (8.8% of sales) of R&D spent in the Automotive Group (2014)
  • › Selling and logistics costs up by 40 bps due to expansion of tire distribution channels
  • › Administrative costs down by 100 bps

Cost as percentage of consolidated sales

1 IAS 19 (rev. 2011) applied for 2014

1) Corporation Highlights Adjusted EBIT1 Bridge

(mn €)

1) Corporation Highlights Sustainable Value Creation

1 Trailing operating assets are calculated as assets for the last twelve months (LTM)

2 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets

1 All amounts shown are nominal values 2 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 3 Nominal amount US-\$950 mn (exchange rate as at December 31, 2014: 1.2154)

1) Corporation Highlights

Investment Grade Rating Substantiated

› Continental's current credit rating is:

  • › Fitch since September 5, 2014: BBB, outlook positive
  • › S&P since December 6, 2013: BBB, outlook stable
  • › Moody's since September 19, 2013: Baa3, outlook stable

› Continental's mid term targets:

  • › Rating: BBB / BBB+
  • › Gearing ratio: <20%
  • › Equity ratio: >35%
  • › Leverage ratio1: well below 1.00x

1 Leverage covenant ratio as defined in syndicated loan agreement; IAS 19 (rev. 2011) applied for 2014 2 IAS 19 (rev. 2011) applied for 2014

2) Automotive Group Adj. EBIT1 Margin Above 8% Despite Record R&D Expenses

Reported change in sales

  • › Chassis & Safety: 3.4%
  • › Powertrain: 3.7%
  • › Interior: 6.0%
  • › Automotive Group: 4.5%

1 Before amortization of intangibles from PPA, consolidation and special effects

  • › Reported EBITDA: €2,408 mn (11.5% of sales)
  • › Reported EBIT: €1,189 mn (5.7% of sales)
  • › R&D: €1,836 mn (8.8% of sales)
  • › Capex: €1,126 mn (5.4% of sales)

2) Automotive Group

Q4/14: Benefitting from Outperforming European Production

Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14

› Sales increased by €442 mn in Q4/14; organic sales growth in Q4/14 at 5.2%

› Adj. EBIT1 increased by €46 mn; operating leverage2 at 10%

› Adjusted EBIT1 margin at 8.4% (PY: 8.2%)

1 Before amortization of intangibles from PPA, consolidation and special effects

2 Operating leverage is defined as delta adj. EBIT1 divided by delta sales

2) Automotive Group Sales Growth Profile 2014 Automotive Group

Organic Sales Growth vs. PC & LV Production Growth

Organic Sales Growth by Division

2) Automotive Group High Earnings Quality in Automotive

1 IAS 19 (rev.2011) applied since 2012

2) Automotive Group

Order Intake (LTS1) in the Automotive Group €30 bn in 2014

Chassis & Safety Powertrain Interior

  • › Order intake totaled almost €10 bn

  • › ADAS book-to-bill ratio at 4.0x

  • › Book-to-bill ~2.0x for Engine Systems and Sensors & Actuators

  • › Close to 40% of order intake was acquired outside of Europe and NAFTA

  • › Solid order backlog evenly distributed amongst various business units

  • › >30% of order intake was acquired in Asia

Order intake Chassis & Safety Order intake Powertrain Order intake Interior

1 Life-time sales

3) Rubber Group Profitability Remains at Elevated Level

1 Before amortization of intangibles from PPA, consolidation and special effects

3) Rubber Group Adjusted EBIT1 Margin Profiting from Raw Material Prices

  • › Sales increased by €70 mn in Q4/14 primarily as a result of consolidation effects (Conti Trade)
  • › Tire volumes decreased by 4% during the quarter mainly due to weak winter tire sales in Europe; FX had a positive effect of more than 3% on tire revenues in Q4/14 while P/M was neutral
  • › Sales at ContiTech were nearly level during the fourth quarter 2014 and EBIT was impacted by M&A cost
  • › Adj. EBIT1 down by €36 mn in Q4/14

1 Before amortization of intangibles from PPA, consolidation and special effects

3) Rubber Group

PLT – Continuously Improving Mix

  • › 128 mn units sold in 2014
  • › ASP1 unchanged at €61 in 2014 on solid mix development
  • › Share of HP2 and winter tires in total unit sales improved to 46% from 39% in 2010
  • › 22 mn winter tires sold worldwide despite "green" winter in Europe
  • › Continental's winter tire inventory at the end of February 2015 are at healthy level

Cost Burden and ASP1 2012 - 2014

1 Average Selling Price (ASP) derived by dividing total PLT sales by total units

2 High Performance is all ≥17" excluding winter tires 3 Standard tire

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations

3) Rubber Group Stabilization in European Demand Hurt by Green Winter

1 U.S. Department of Transportation

3) Rubber Group

Expected Raw Material Price Development in 2015

  • › Natural rubber price (TSR 20) expected to average U.S. \$1.75 in 2015
  • › Synthetic rubber price (butadiene feedstock) forecasted to average U.S. \$0.95 in 2015
  • › Some tailwind for H1 2015 expected
  • › U.S. \$50 mn gross benefit expected for every U.S. \$10 decline from oil price (average was U.S. \$99 in 2014)

Raw Material Price Development1 2010 - 2015E (U.S. cents/kg)

1 Source: Bloomberg and Continental estimates for 2015

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations 24

1 Before amortization of intangibles from PPA, consolidation and special effects

› ContiTech's ROCE will improve to 25%

› ContiTech's EBIT margin to be restored to 12%

Mid-term targets confirmed:

  • › Veyance will add about €1.5 bn to operating assets
  • › PPA on intangibles will be amortized over 11 years, amounting to approximately €100 mn in the first five years
  • › Veyance adjusted EBIT1 margin at about 8% of sales including synergies and integration costs amounting to around -€15 mn (net) for 2015
  • › Closing on January 30, 2015 › Sales contribution from Veyance should amount to > €1.3 bn; consolidations starts from
  • Forming a Global Player in Rubber and Plastics Technology

3) Rubber Group

Feb 2015 onwards

4) Indebtedness and Cash Flow Net Indebtedness Bridge

1 According to cash flow statement incl. intangible assets

4) Indebtedness and Cash Flow Net Indebtedness and Gearing Ratio 10,484 8,896 7,317 6,772 5,320 4,289 2,824 190% 219% 118% 90% 58% 65% 46% 26% YE YE YE YE YE YE YE 2008 2009 2010 2011 2012 2013 2014 Net indebtedness (mn €) Gearing ratio Gearing ratio applying IAS 19 (rev. 2011)

4) Indebtedness and Cash Flow Cash Conversion1

1 Cash flow before financing activities divided by net income attributable to the shareholders of the parent; IAS 19 (rev.2011) applied since 2012

4) Indebtedness and Cash Flow Cash Flow Overview

Cash Flow 2013 – 2014 (mn €) Cash Flow 2014 by Quarter (mn €)

1 Percentages are calculated as share of gross indebtedness; bond values and the values for the syndicated loan are nominal values, all others book values 2 Term loan and revolving credit facility repayment in April 2016 / April 2019; revolving credit facility unutilized at YE 2014

3 Nominal amount US-\$950 mn (exchange rate at December 31, 2014: 1.2154)

5) Outlook PC & LT Production by Quarter

Europe (mn units)

NAFTA (mn units)

Source: IHS and own estimates, Europe excluding Kazakhstan and Uzbekistan

5) Outlook 2015 Market Outlook for Major Regions 2015

Commercial Vehicle2 Prod. (k units)

1 Passenger car and light truck <6t

2 Heavy vehicles >6t

3 Passenger car & light truck replacement

4 Commercial vehicle replacement (radial and biased)

Preliminary FY 2014 Results – March 5, 2015

EDMR – Equity and Debt Markets Relations 31

5) Outlook 2015 Continental Corporation

2014 2015E
Consolidated sales &
adj. EBIT1
margin		 €34.5 bn
11.3%		 To increase to ~€37.5 bn; in addition up to €1 bn
positive FX benefit is feasible
Adj. EBIT1
margin >10.5%
Automotive Group
adj. EBIT1		 €20.9 bn
€1.68 bn		 >€22 bn
Adj. EBIT1
margin >8.5%
Rubber Group
adj. EBIT1		 €13.6 bn
€2.31 bn		 >€15 bn
Adj. EBIT1
margin >15%
Raw material cost
impact		 Relief of about
€190 mn		 Raw materials do not affect Rubber Group's
EBIT line
Special effects -€323 mn About -€100 mn
Net interest expense
Tax rate		 €265 mn
20%		 Net interest result ~€300 mn
~30%
Capex
PPA		 €2.0 bn
€194 mn		 Capex at around 6% of sales
PPA in ContiTech: ~€105 mn
Free cash flow before
acquisitions		 €2.1 bn At least €1.5 bn

1 Before amortization of intangibles from PPA, consolidation (2014 in comparison to 2013) and special effects

Thank you!

Official Sponsor of the UEFA European Football Championship™

Disclaimer

  • › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Annual Press Conference and the Analyst and Investor Call on March 5, 2015 and the subsequent road shows in Frankfurt, Zurich, Paris and San Francisco. 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.
  • › 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.

Contact Equity and Debt Markets Relations

Vahrenwalder Str. 9 Klaus Paesler

Rolf Woller Sabine Reese Phone: +49 511 938 1068 Phone: +49 511 938 1027

Ingrid Kampf Michael Saemann Phone: +49 511 938 1163 Phone: +49 511 938 1307 e-mail: [email protected] www.continental-ir.com Henry Schniewind

30165 Hanover Phone: +49 511 938 1316 Germany e-mail: [email protected]

e-mail: [email protected] e-mail: [email protected]

Fax: +49 511 938 1080 e-mail: [email protected]

Phone: +49 511 938 1062 e-mail: henr[email protected]

Continental Financial Calendar

2015

Annual Financial Press Conference March
5, 2015
Annual Shareholders' Meeting April
30,
2015
Q1 Financial Report May
7,
2015
Half Year Financial Report August 4, 2015
Nine Month Financial Report November 9,
2015
Annual Financial Press Conference March
2016
Annual Shareholders' Meeting April 29, 2016
Q1 Financial Report May 2016
Half Year Financial Report August 2016
Nine Month Financial Report November
2016

Continental Share Data / ADR Data

Share Data

Type of share No-par value share
Bloomberg Ticker CON
Reuters Ticker CONG
German Security Identification Number (WKN) 543
900
ISIN Number DE0005439004
Shares outstanding
as at December 31, 2014		 200,005,983

ADR Data

Ratio (ordinary share: ADR) 1:5
Bloomberg Ticker CTTAY
Reuters Ticker CTTAY.PK
ISIN Number US2107712000
ADR Level Level 1
Exchange OTC
Sponsor Deutsche Bank Trust Company
Americas

Continental Bond Data

Issuer Conti-Gummi
Finance B.V.,
Netherlands1		 Continental
AG		 Continental Rubber of
Corp., USA1
America,		 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's4)
BB (S&P)
BBB (Fitch2)		 Ba2 (Moody's4)
BB
(S&P)
BB (Fitch2)		 Ba3 (Moody's4)
BB-
(S&P)
BB (Fitch2)		 Ba1 (Moody's4)
BB (S&P)
BBB (Fitch2)
Current corporation
rating3
and bond		 BBB (Fitch), BBB (S&P), Baa3 (Moody's4)
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
amount €1,000		 €1,000 with min. tradable
amount €1,000		 \$1,000 with min. tradable
amount \$150,000		 €1,000 with min. tradable
amount €1,000

1 Guaranteed by Continental AG only since April 24, 2014 2 Non-contracted rating at date of issuance 3 Fitch since Jul. 15, 2013; S&P since Dec. 6, 2013; Moody's since Sept. 19, 2013 4 Non-contracted rating since Feb. 1, 2014

Back-up

6) Back-up Worldwide Supplier Ranking

Source: Company filings. Calendarized to December year-end. Based on average currency exchange rates 2014

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
Market data for PC & LT production
EU -9% -3% -1% 1% 8% 6% 4% 3%
NAFTA 1% 4% 5% 5% 5% 4% 5% 5%
EU and NAFTA combined -4% 0% 2% 3% 7% 5% 5% 4%
Worldwide 0% 2% 3% 4% 5% 4% 4% 3%
Continental
Electronic stability control (ESC) 13% 14% 15% 15% 14% 12% 11% 12%
Anti locking brake (ABS) -24% -24% -21% -19% -13% -11% -16% -19%
Boosters -4% -2% 0% 0% 8% 10% 6% 5%
Calipers 2% 7% 7% 6% 7% 2% 1% 0%
Advanced driver assistance systems (ADAS) 51% 57% 57% 58% 53% 50% 47% 47%
Engine electronic control units (ECUs) -11% -8% -4% -1% 7% 6% 6% 4%
Injectors -10% -7% -3% -1% -3% -3% -5% -5%
Transmissions 4% 7% 10% 12% 8% 8% 6% 6%
Turbochargers 296% 207% 179% 108% 64% 68% 71% 78%
Market data tires
PC & LT replacement tires Europe -10% -4% -1% -1% 6% 5% 4% 2%
PC & LT replacement tires NAFTA -2% 0% 4% 4% 7% 6% 5% 6%
Commercial vehicle tires OE Europe -3% 0% 0% 0% 1% -7% -4% -7%
Commercial vehicle tires OE NAFTA -12% -13% -9% -2% 6% 10% 12% 12%
Commercial vehicle replacement tires Europe 5% 8% 9% 9% 15% 6% 3% 1%
Commercial vehicle replacement tires NAFTA -1% -2% -2% -2% 9% 9% 9% 8%
Continental
PC & LT tires -6% -1% 1% 2% 9% 6% 5% 3%
Commercial vehicle tires -4% 2% 5% 6% 13% 8% 5% 3%
ContiTech organic sales growth -2% 0% 0% 2% 5% 2% 2% 1%

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations 43

Corporation Highlights 2014

›
Sales		 Increase of 3.5% to €34,505.7
mn (PY: €33,331.0
mn); organic sales up 4.2%
›
EBITDA		 Increase of 0.8% to €5,133.8 mn
(PY: €5,095.0
mn)
›
EBIT		 Increase to €3,344.8
mn (PY: €3,263.7
mn)
Adj. EBIT1
mn (11.3% adj. EBIT1
increase to €3,874.5
margin)
PPA2
effect -€194.0 mn; total special effects -€323.3 mn
›
NIAT3		 Increase to €2,375.3 mn (PY: €1,923.1 mn)
›
EPS3		 EPS
of €11.88
(PY: €9.62)
EPS before PPA2
before PPA2)
€12.57 (PY: €10.95
›
Capex		 Capex increased to €2,045.4 mn (PY: €1,981.1 mn); capex ratio 5.9% of sales;
Capex to depreciation coverage 1.1x (1.3x ex PPA2)
›
R&D		 Expenses for research and development increased by 13.8% to €2,137.7 mn
(PY: €1,878.4 mn); R&D ratio 6.2% of sales (PY: 5.6%)
›
Cash flow		 Operating cash flow up by €446.5 mn to €4,168.3 mn; free cash flow €2,014.9 mn
›
Net debt		 Net indebtedness down by €1,465.8 mn to €2,823.5 mn;
Liquidity and undrawn credit lines amounted to €7,276.2 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

Key Historical Credit Metrics – IAS 19 (rev. 2011) applied6

(mn €)1 2009 2010 2011 2012 2013 2014
Cash flow statement
Adjusted EBITDA2 2,354 3,662 4,247 4,822 5,094 5,318
Reported EBITDA 1,591 3,588 4,228 4,967 5,095 5,134
Net cash interest paid -727 -703 -662 -575 -534 -158
Tax paid -205 -493 -466 -684 -805 -775
Change in net working capital3 595 -497 -556 564 -4 -207
Other 4 1,173 -46 -256 -488 -30 175
Cash flow arising from operating activities 2,427 1,849 2,289 3,785 3,722 4,168
Cash flow arising from investing activities -787 -1,282 -1,798 -2,132 -1,904 -2,153
- thereof capex in PPE and intangibles -911 -1,324 -1,813 -2,081 -2,024 -2,110
Cash flow before financing activities 1,640 567 491 1,653 1,818 2,015
Balance sheet
Cash and cash equivalents 1,713 1,471 1,541 2,397 2,045 3,244
Derivative instruments and interest-bearing investments 104 202 249 536 303 364
Total indebtedness 10,713 8,991 8,562 8,253 6,638 6,432
Net indebtedness 8,896 7,317 6,772 5,320 4,289 2,824
Credit ratios
Net indebtedness / adj. EBITDA2 3.8x 2.0x 1.6x 1.1x 0.8x 0.5x
Net cash interest paid coverage (Ratio)5 3.2x 5.2x 6.4x 8.4x 9.5x 33.7x

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

1 Maturities later than 2019 are bond maturities only; all bond and syndicated loan amounts shown are nominal values; maturities do not add up to gross indebtedness amounting to

€6,431.6 mn as at December 31, 2014; SoR = Sales of receivables (€842.9 mn total amount as at December 31, 2014) 2 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 3 Nominal amount \$950 mn (exchange rate as at December 31, 2014: 1.2154)

6) Back-up Capex and Depreciation and EPS Breakdown

1 Amortization of intangibles from PPA

2 Assuming corporate tax rate of 28%

1 Adjusted EBITDA as defined in syndicated loan agreement; IAS 19 (rev. 2011) applied only to 2013 and 2014

2 Leverage covenant ratio as defined in syndicated loan agreement

Capex by division 2012 - 2014 (mn €) Capex distribution by division 2012 - 2014

C&S PT I Tires CT

C&S PT I Tires CT

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations 49

6) Back-up Automotive Group Financials – Chassis & Safety

  • › Sales increased by 4.9% before consolidation and FX effects
  • › EBITDA increased by €27.9 mn to €1,018.1 mn (+2.8%)
  • › Adj. EBIT1 increased by €16.5 mn to €708.5 mn (adj. EBIT1 margin 9.4%)
  • › EBIT increased by €81.3 mn to €680.2 mn (EBIT margin 9.1%)
  • › PPA effect in 2014: -€25.5 mn
  • › Special effects in 2014: -€4.7 mn

Chassis & Safety FY 2014

6) Back-up Automotive Group Financials – Powertrain

  • › Sales increased by 2.9% before consolidation and FX effects
  • › EBITDA decreased by €206.9 mn to €443.3 mn (-31.8%)
  • › Adj. EBIT1 decreased by €60.5 mn to €259.2 mn (adj. EBIT1 margin 4.1%)
  • › EBIT decreased by €276.3 mn to -€96.8 mn (EBIT margin -1.5%)
  • › PPA effect in 2014: -€64.5 mn
  • › Special effects in 2014: -€285.1 mn mainly resulting from SCE JV impairment, HEV asset impairment and other asset impairments

Powertrain FY 2014

Sales (mn €) EBITDA margin Adj. EBIT margin 1

Automotive Group Financials – Interior

  • › Sales increased by 8.6% before consolidation and FX effects
  • › EBITDA increased by €96.1 mn to €946.3 mn (+11.3%)
  • › Adj. EBIT1 increased by €126.7 mn to €708.4 mn (adj. EBIT1 margin 10.1%)
  • › EBIT increased by €225.3 mn to €605.9 mn (EBIT margin 8.7%)
  • › PPA effect in 2014: -€92.3 mn
  • › Special effects in 2014: -€10.2 mn

Interior FY 2014

Sales (mn €) EBITDA margin Adj. EBIT margin 1

Rubber Group Financials – Tires

  • › Sales increased by 2.1% before consolidation and FX effects
  • › EBITDA increased by €143.1 mn to €2,280.8 mn (+6.7%)
  • › Adj. EBIT1 increased by €78.8 mn to €1,867.1 mn (adj. EBIT1 margin 19.4%)
  • › EBIT increased by €76.7 mn to €1,829.4 mn (EBIT margin 18.7%)
  • › Special effects in 2014: -€25.6 mn

Tires – Commercial Vehicle Tire Demand

Replacement Tire Demand

Replacement Tire Demand for Truck Tires NAFTA

1 BAG = Bundesamt für Güterverkehr

2 ATA = American Trucking Association

6) Back-up Rubber Group Financials – ContiTech

  • › Sales increased by 1.3% before consolidation and FX effects
  • › EBITDA decreased by €24.5 mn to €551.8 mn (-4.3%)
  • › Adj. EBIT1 decreased by €29.8 mn to €438.5 mn (adj. EBIT1 margin 11.3%)
  • › EBIT decreased by €28.8 mn to €433.3 mn (EBIT margin 11.0%)
  • › Special effects in 2014: +€2.3 mn

Fact Sheets 2012 – 2014

6) Fact Sheets Quarterly Sales Analysis

Sales (mn €) 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 1,812.4 1,780.9 1,725.0 1,734.2 7,052.5 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
Powertrain 1,626.2 1,572.5 1,484.8 1,451.3 6,134.8 1,526.1 1,606.5 1,561.3 1,566.4 6,260.3 1,579.1 1,598.4 1,638.9 1,677.9 6,494.3
Interior 1,660.9 1,614.4 1,582.3 1,576.6 6,434.2 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
Tires 2,366.8 2,351.7 2,484.9 2,461.6 9,665.0 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
ContiTech 923.0 931.6 924.0 933.2 3,711.8 941.6 998.7 961.9 976.1 3,878.3 973.4 978.6 979.6 999.6 3,931.2
Other / Consolidation -69.8 -64.4 -66.7 -61.2 -262.1 -69.6 -67.3 -64.4 -64.4 -265.7 -58.0 -57.3 -55.6 -50.7 -221.6
Continental Corporation 8,319.5 8,186.7 8,134.3 8,095.7 32,736.2 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
Changes Y-o-Y in % 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 12.0 11.2 8.1 2.3 8.3 -1.1 4.5 4.4 4.7 3.1 4.8 0.4 1.3 7.1 3.4
Powertrain 16.4 7.5 -2.1 -0.9 5.0 -6.2 2.2 5.2 7.9 2.0 3.5 -0.5 5.0 7.1 3.7
Interior 8.6 6.6 3.8 2.2 5.3 -2.5 6.7 1.9 4.6 2.7 4.9 0.6 7.0 11.8 6.0
Tires 19.5 11.9 10.7 3.0 10.9 -6.1 2.9 -0.3 0.1 -0.8 4.3 -0.5 3.2 1.6 2.1
ContiTech 4.2 1.7 2.6 6.0 3.6 2.0 7.2 4.1 4.6 4.5 3.4 -2.0 1.8 2.4 1.4
Continental Corporation 13.3 8.7 5.4 2.3 7.3 -3.4 4.3 2.6 3.8 1.8 4.4 -0.2 3.8 6.1 3.5

6) Fact Sheets Quarterly EBITDA Analysis – IAS 19 (rev. 2011) applied

EBITDA (mn €) 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 249.8 257.3 237.3 263.5 1,007.9 241.8 250.3 245.8 252.3 990.2 254.0 242.0 262.0 260.1 1,018.1
Powertrain 164.2 153.0 125.0 166.8 609.0 158.9 168.5 160.7 162.1 650.2 157.0 125.3 -11.9 172.9 443.3
Interior 199.4 212.2 194.0 247.7 853.3 202.1 220.1 214.5 213.5 850.2 223.2 244.5 229.7 248.9 946.3
Tires 468.5 530.7 522.4 483.5 2,005.1 459.2 533.2 590.9 554.4 2,137.7 545.4 591.9 603.5 540.0 2,280.8
ContiTech 140.3 148.0 144.2 126.4 558.9 135.9 157.5 139.7 143.2 576.3 143.7 132.9 144.7 130.5 551.8
Other / Consolidation -18.3 -12.5 -24.6 -11.4 -66.8 -28.5 -19.7 -29.1 -32.3 -109.6 -27.5 -26.6 -24.7 -27.7 -106.5
Continental Corporation 1,203.9 1,288.7 1,198.3 1,276.5 4,967.4 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
2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
249.8 257.3 237.3 263.5 1,007.9 241.8 250.3 245.8 252.3 990.2 254.0 242.0 262.0 260.1 1,018.1
164.2 153.0 125.0 166.8 609.0 158.9 168.5 160.7 162.1 650.2 157.0 125.3 -11.9 172.9 443.3
199.4 212.2 194.0 247.7 853.3 202.1 220.1 214.5 213.5 850.2 223.2 244.5 229.7 248.9 946.3
468.5 530.7 522.4 483.5 2,005.1 459.2 533.2 590.9 554.4 2,137.7 545.4 591.9 603.5 540.0 2,280.8
140.3 148.0 144.2 126.4 558.9 135.9 157.5 139.7 143.2 576.3 143.7 132.9 144.7 130.5 551.8
-18.3 -12.5 -24.6 -11.4 -66.8 -28.5 -19.7 -29.1 -32.3 -109.6 -27.5 -26.6 -24.7 -27.7 -106.5
EBITDA margin in % 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 13.8 14.4 13.8 15.2 14.3 13.5 13.5 13.7 13.9 13.6 13.5 13.0 14.4 13.4 13.5
Powertrain 10.1 9.7 8.4 11.5 9.9 10.4 10.5 10.3 10.3 10.4 9.9 7.8 -0.7 10.3 6.8
Interior 12.0 13.1 12.3 15.7 13.3 12.5 12.8 13.3 12.9 12.9 13.1 14.1 13.3 13.5 13.5
Tires 19.8 22.6 21.0 19.6 20.7 20.7 22.0 23.8 22.5 22.3 23.5 24.6 23.6 21.6 23.3
ContiTech 15.2 15.9 15.6 13.5 15.1 14.4 15.8 14.5 14.7 14.9 14.8 13.6 14.8 13.1 14.0
Continental Corporation 14.5 15.7 14.7 15.8 15.2 14.6 15.3 15.8 15.4 15.3 15.4 15.4 13.9 14.9 14.9
2014
Changes Y-o-Y in % 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
-3.2 -2.7 3.6 -4.3 -1.8 5.0 -3.3 6.6 3.1 2.8
-3.2 10.1 28.6 -2.8 6.8 -1.2 -25.6 -107.4 6.7 -31.8
1.4 3.7 10.6 -13.8 -0.4 10.4 11.1 7.1 16.6 11.3
-2.0 0.5 13.1 14.7 6.6 18.8 11.0 2.1 -2.6 6.7
-3.1 6.4 -3.1 13.3 3.1 5.7 -15.6 3.6 -8.9 -4.3
-2.9 1.6 10.4 1.3 2.6 10.8 0.0 -9.0 2.4 0.8
Continental Corporation
2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY

Quarterly Analysis of Adjusted EBIT1

Adjusted EBIT1 1(mn €) 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 168.5 176.1 168.7 178.7 692.0 179.2 166.8 186.0 176.5 708.5
Powertrain 59.6 93.2 85.8 81.1 319.7 81.0 84.0 2.1 92.1 259.2
Interior 122.9 160.3 149.1 149.4 581.7 162.7 190.9 168.0 186.8 708.4
Tires 366.3 439.7 534.6 447.7 1,788.3 442.5 484.7 513.9 426.0 1,867.1
ContiTech 109.9 130.5 112.9 115.0 468.3 115.3 105.5 117.1 100.6 438.5
Other / Consolidation -31.0 -19.7 -29.2 -32.6 -112.5 -27.6 -26.7 -25.1 -27.8 -107.2
Continental Corporation 796.2 980.1 1,021.9 939.3 3,737.5 953.1 1,005.2 962.0 954.2 3,874.5
2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
1
Adjusted EBIT1
margin in %		 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 9.4 9.5 9.4 9.8 9.5 9.5 8.9 10.2 9.1 9.4
Powertrain 3.9 5.8 5.5 5.2 5.1 5.1 5.3 0.1 5.7 4.1
Interior 7.8 9.5 9.2 9.1 8.9 9.6 11.0 9.7 10.1 10.1
Tires 16.5 18.2 21.6 18.2 18.7 19.3 20.4 20.6 17.4 19.4
ContiTech 11.7 13.1 11.7 11.8 12.1 12.0 10.9 12.1 10.2 11.3
Continental Corporation 10.0 11.5 12.2 11.2 11.2 11.4 11.8 11.3 10.8 11.3
2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Changes Y-o-Y in % 2014
Q1 Q2 Q3 Q4 FY
C&S 6.4 -5.3 10.3 -1.2 2.4
Powertrain 35.9 -9.9 -97.6 13.6 -18.9
Interior 32.4 19.1 12.7 25.0 21.8
Tires 20.8 10.2 -3.9 -4.8 4.4
ContiTech 4.9 -19.2 3.7 -12.5 -6.4
Continental Corporation 19.7 2.6 -5.9 1.6 3.7

Quarterly EBIT Analysis – IAS 19 (rev. 2011) applied

EBIT 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 166.8 173.0 153.3 179.6 672.7 155.3 162.7 155.1 125.8 598.9 172.3 159.3 179.5 169.1 680.2
Powertrain 45.8 37.0 5.5 -40.0 48.3 52.1 58.3 49.5 19.6 179.5 64.5 32.9 -263.3 69.1 -96.8
Interior 92.8 102.5 81.1 137.1 413.5 95.7 112.5 104.4 68.0 380.6 137.8 154.7 144.8 168.6 605.9
Tires 384.3 442.9 432.6 406.7 1,666.5 365.2 440.3 494.6 452.6 1,752.7 440.7 482.4 486.8 419.5 1,829.4
ContiTech 115.8 123.6 118.9 95.3 453.6 107.7 129.2 111.8 113.4 462.1 115.5 104.3 115.1 98.4 433.3
Other / Consolidation -18.3 -12.8 -24.6 -12.7 -68.4 -28.6 -19.8 -29.1 -32.6 -110.1 -27.6 -26.7 -25.1 -27.8 -107.2
Continental Corporation 787.2 866.2 766.8 766.0 3,186.2 747.4 883.2 886.3 746.8 3,263.7 903.2 906.9 637.8 896.9 3,344.8
EBIT margin in % 2012 2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
C&S 9.2 9.7 8.9 10.4 9.5 8.7 8.7 8.6 6.9 8.2 9.2 8.5 9.8 8.7 9.1
Powertrain 2.8 2.4 0.4 -2.8 0.8 3.4 3.6 3.2 1.3 2.9 4.1 2.1 -16.1 4.1 -1.5
Interior 5.6 6.3 5.1 8.7 6.4 5.9 6.5 6.5 4.1 5.8 8.1 8.9 8.4 9.1 8.7
Tires 16.2 18.8 17.4 16.5 17.2 16.4 18.2 20.0 18.4 18.3 19.0 20.1 19.0 16.8 18.7
ContiTech 12.5 13.3 12.9 10.2 12.2 11.4 12.9 11.6 11.6 11.9 11.9 10.7 11.7 9.8 11.0
Continental Corporation 9.5 10.6 9.4 9.5 9.7 9.3 10.3 10.6 8.9 9.8 10.8 10.6 7.4 10.1 9.7
2013 2014
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
-6.9 -6.0 1.2 -30.0 -11.0 10.9 -2.1 15.7 34.4 13.6
13.8 57.6 800.0 149.0 271.6 23.8 -43.6 -631.9 252.6 -153.9
3.1 9.8 28.7 -50.4 -8.0 44.0 37.5 38.7 147.9 59.2
-5.0 -0.6 14.3 11.3 5.2 20.7 9.6 -1.6 -7.3 4.4
-7.0 4.5 -6.0 19.0 1.9 7.2 -19.3 3.0 -13.2 -6.2
-5.1 2.0 15.6 -2.5 2.4 20.8 2.7 -28.0 20.1 2.5

Consolidated Statement of Income – IAS 19 (rev. 2011) applied

(mn €) YE 2012 YE 2013 YE 2014 Q4 2012 Q4 2013 Q4 2014
Sales 32,736.2 33,331.0 34,505.7 8,095.7 8,407.1 8,918.1
Cost of sales -25,616.9 -25,529.4 -25,839.6 -6,348.8 -6,445.5 -6,700.9
Gross margin on sales 7,119.3 7,801.6 8,666.1 1,746.9 1,961.6 2,217.2
Research and development expenses -1,744.8 -1,878.4 -2,137.7 -399.2 -404.0 -510.1
Selling and logistics expenses -1,581.5 -1,657.0 -1,840.6 -414.8 -437.1 -512.9
Administrative expenses -661.2 -698.7 -762.8 -169.0 -174.3 -181.7
Other income and expenses -16.7 -342.2 -507.4 -17.3 -214.1 -131.9
Income from at-equity accounted investees 63.4 37.6 -73.8 16.2 13.8 15.9
Other income from investments 7.7 0.8 1.0 3.2 0.9 0.4
Earnings before interest and taxes 3,186.2 3,263.7 3,344.8 766.0 746.8 896.9
Interest income1 97.0 81.8 94.5 25.1 23.5 26.2
Interest expense1,2 -595.8 -886.1 -359.8 -142.0 -197.3 -75.9
Net interest expense -498.8 -804.3 -265.3 -116.9 -173.8 -49.7
Earnings before taxes 2,687.4 2,459.4 3,079.5 649.2 573.0 847.2
Income tax expense -697.8 -449.6 -622.0 -161.8 -211.8 -250.7
Net income 1,989.6 2,009.8 2,457.5 487.4 361.2 596.5
Non-controlling interests -84.4 -86.7 -82.2 -34.6 -14.1 -20.1
Net income attributable to the shareholders of the parent 1,905.2 1,923.1 2,375.3 452.8 347.1 576.4
Basic earnings per share in EUR 9.53 9.62 11.88 2.26 1.74 2.89
Diluted earnings per share in EUR 9.53 9.62 11.88 2.26 1.74 2.89

1 Including interest effects from pension obligations, from other long-term employee benefits, and from pension funds. In the prior years, the resulting income was reported under interest expense; the comparative figures for the prior years have been adjusted 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.

Consolidated Statement of Financial Position – Assets

Assets in € millions Dec. 31, 2014 Dec. 31, 2013
Goodwill 5,769.1 5,520.9
Other intangible assets 443.3 557.7
Property, plant and equipment 8,446.4 7,728.0
Investment property 17.5 20.4
Investments in at-equity accounted investees 298.5 450.0
Other investments 10.7 7.9
Deferred tax assets 1,573.4 928.4
Defined benefit assets 1.6 6.0
Long-term derivative instruments and interest
bearing investments 301.2 285.1
Other long-term financial assets 41.9 45.0
Other long-term assets 19.7 20.1
Non-current assets 16,923.3 15,569.5
Inventories 2,987.6 2,830.9
Trade accounts receivable 5,846.2 5,315.8
Other short-term financial assets 382.5 336.2
Other short-term assets 731.3 601.2
Income tax receivables 60.3 69.3
Short-term derivative instruments and interest
bearing investments 63.1 18.3
Cash and cash equivalents 3,243.8 2,044.8
Assets held for sale 3.0 34.8
Current assets 13,317.8 11,251.3
Total assets 30,241.1 26,820.8

Consolidated Statement of Financial Position – Total Equity and Liabilities

Total equity and liabilities in € millions Dec. 31, 2014 Dec. 31, 2013
Subscribed capital 512.0 512.0
Capital reserves 4,155.6 4,155.6
Retained earnings 7,404.3 5,535.3
Other comprehensive income -1,399.8 -1,191.7
Equity attributable to the shareholders of the parent 10,672.1 9,011.2
Non-controlling interests 352.5 311.0
Total equity 11,024.6 9,322.2
Provisions for pension liabilities and similar obligations 3,483.7 2,391.1
Deferred tax liabilities 178.5 113.2
Long-term provisions for other risks and obligations 306.3 266.9
Long-term portion of indebtedness 5,077.4 5,041.2
Other long-term financial liabilities 48.7 16.2
Other long-term liabilities 46.4 42.2
Non-current liabilities 9,141.0 7,870.8
Trade accounts payable 4,861.6 4,596.3
Income tax payables 577.3 588.2
Short-term provisions for other risks and obligations 732.7 631.1
Indebtedness 1,354.2 1,596.3
Other short-term financial liabilities 1,649.2 1,448.0
Other short-term liabilities 900.2 767.9
Liabilities held for sale 0.3 —
Current liabilities 10,075.5 9,627.8
Total equity and liabilities 30,241.1 26,820.8

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations 63

6) Fact Sheets Consolidated Statement of Cash Flows

in € millions 2014 2013
Net income 2,457.5 2,009.8
Income tax expense 622.0 449.6
Net interest expense 265.3 804.3
EBIT 3,344.8 3,263.7
Interest paid -185.9 -565.1
Interest received 28.2 30.8
Income tax paid -775.0 -805.4
Dividends received 33.7 37.9
Depreciation, amortization, impairment and reversal of impairment losses 1,789.0 1,831.3
Income from at-equity accounted and other investments, incl. impairment and reversal of impairment losses 71.3 -46.3
Gains from the disposal of assets, companies and business operations -13.6 -86.9
Other non-cash items — -2.4
Changes in
inventories -20.1 67.9
trade accounts receivable -246.6 -451.6
trade accounts payable 59.3 379.8
pension and similar obligations -20.5 -8.2
other assets and liabilities 103.7 76.3
Cash flow arising from operating activities 4,168.3 3,721.8
Cash flow from the disposal of property, plant and equipment, and intangible assets 86.4 27.2
Capital expenditure on property, plant and equipment, and software -2,045.4 -1,980.7
Capital expenditure on intangible assets from development projects and miscellaneous -64.9 -42.9
Cash flow from the disposal of companies and business operations -0.5 246.9
Acquisition of companies and business operations -129.0 -154.0
Cash flow arising from investing activities -2,153.4 -1,903.5
Cash flow before financing activities (free cash flow) 2,014.9 1,818.3
Changes in short-term debt -323.2 -339.1
Proceeds from the issuance of long-term debt 1,565.0 4,082.3
Principal repayments on long-term debt -1,604.6 -5,276.6
Step acquisitions 0.0 -48.5
Dividends paid -500.0 -450.0
Dividends paid and repayment of capital to non-controlling interests -45.5 -62.7
Cash and cash equivalents arising from first consolidation of subsidiaries 0.4 1.7
Cash flow arising from financing activities -907.9 -2,092.9
Change in cash and cash equivalents 1,107.0 -274.6
Cash and cash equivalents as at January 1 2,044.8 2,397.2
Effect of exchange rate changes on cash and cash equivalents 92.0 -77.8
Cash and cash equivalents as at December 31 3,243.8 2,044.8

Preliminary FY 2014 Results – March 5, 2015 EDMR – Equity and Debt Markets Relations 64

Q4 2014 Results Reported & Adjusted (mn €) – by Division

Chassis & Safety Powertrain Interior Tires ContiTech Cons./Corr. Corporation
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
Sales 1,815.4 1,944.8 1,566.4 1,677.9 1,649.8 1,844.1 2,463.8 2,502.4 976.1 999.6 -64.4 -50.7 8,407.1 8,918.1
EBIT 125.8 169.1 19.6 69.1 68.0 168.6 452.6 419.5 113.4 98.4 -32.6 -27.8 746.8 896.9
in % of sales 6.9% 8.7% 1.3% 4.1% 4.1% 9.1% 18.4% 16.8% 11.6% 9.8% 8.9% 10.1%
Amortization of intangible assets from PPA 11.4 4.5 28.4 13.2 40.1 17.4 1.1 1.8 1.6 1.7 0.0 0.0 82.6 38.6
Total special effects 41.4 4.7 35.7 1.7 41.4 0.8 -6.0 2.5 0.0 -0.6 0.0 0.0 112.5 9.1
Total consolidation effects 0.1 -1.8 -2.6 8.1 -0.1 0.0 0.0 2.2 0.0 1.1 0.0 0.0 -2.6 9.6
Total consolidation & special effects 41.5 2.9 33.1 9.8 41.3 0.8 -6.0 4.7 0.0 0.5 0.0 0.0 109.9 18.7
Adjusted operating result (adj. EBIT) 1 178.7 176.5 81.1 92.1 149.4 186.8 447.7 426.0 115.0 100.6 -32.6 -27.8 939.3 954.2
in % of adjusted sales 9.8% 9.1% 5.2% 5.7% 9.1% 10.1% 18.2% 17.4% 11.8% 10.2% 11.2% 10.8%

6) Fact Sheets FY 2014 Results Reported & Adjusted (mn €) – by Division

Chassis & Safety
2013		 2014 Powertrain
2013		 2014 Interior
2013		 2014 Tires
2013		 2014 ContiTech
2013		 2014 Cons./Corr.
2013		 2014 Corporation
2013		 2014
Sales 7,269.2 7,514.9 6,260.3 6,494.3 6,605.7 7,002.5 9,583.2 9,784.4 3,878.3 3,931.2 -265.7 -221.6 33,331.0 34,505.7
EBIT
in % of sales		 598.9
8.2%		 680.2
9.1%		 179.5
2.9%		 -96.8
-1.5%		 380.6
5.8%		 605.9
8.7%		 1,752.7
18.3%		 1,829.4
18.7%		 462.1
11.9%		 433.3
11.0%		 -110.1 -107.2 3,263.7
9.8%		 3,344.8
9.7%
Amortization of intangible assets from PPA 50.9 25.5 126.9 64.5 182.7 92.3 4.3 5.5 5.9 6.2 0.0 0.0 370.7 194.0
Total special effects 41.1 4.7 14.4 285.1 19.8 10.2 31.3 25.6 0.3 -2.3 -2.4 0.0 104.5 323.3
Total consolidation effects 1.1 -1.9 -1.1 6.4 -1.4 0.0 0.0 6.6 0.0 1.3 0.0 0.0 -1.4 12.4
Total consolidation & special effects 42.2 2.8 13.3 291.5 18.4 10.2 31.3 32.2 0.3 -1.0 -2.4 0.0 103.1 335.7
Adjusted operating result (adj. EBIT) 1
in % of adjusted sales		 692.0
9.5%		 708.5
9.4%		 319.7
5.1%		 259.2
4.1%		 581.7
8.9%		 708.4
10.1%		 1,788.3
18.7%		 1,867.1
19.4%		 468.3
12.1%		 438.5
11.3%		 -112.5 -107.2 3,737.5
11.2%		 3,874.5
11.3%

6) Fact Sheets Q4 & FY 2014 Results Reported & Adjusted (mn €) – by Group

Q4 2013/2014 YTD January - December 2013/2014
Automotive
2013		 2014 Rubber
2013		 2014 Cons./Corr.
2013		 2014 Corporation
2013		 2014 Automotive
2013		 2014 Rubber
2013		 2014 Cons./Corr.
2013		 2014 2013 Corporation
2014
Sales 5,000.4 5,442.3 3,416.5 3,486.6 -9.8 -10.8 8,407.1 8,918.1 20,016.1 20,909.2 13,355.5 13,637.6 -40.6 -41.1 33,331.0 34,505.7
EBIT
in % of sales		 213.3
4.3%		 406.8
7.5%		 566.0
16.6%		 517.9
14.9%		 -32.5 -27.8 746.8
8.9%		 896.9
10.1%		 1,158.9
5.8%		 1,189.3
5.7%		 2,214.8
16.6%		 2,262.7
16.6%		 -110.0 -107.2 3,263.7
9.8%		 3,344.8
9.7%
Amortization of intangible assets from PPA 79.9 35.1 2.7 3.4 0.0 0.1 82.6 38.6 360.5 182.3 10.2 11.7 0.0 0.0 370.7 194.0
Total special effects 118.5 7.2 -6.0 1.9 0.0 0.0 112.5 9.1 75.3 300.0 31.6 23.3 -2.4 0.0 104.5 323.3
Total consolidation effects -2.6 6.3 0.0 3.3 0.0 0.0 -2.6 9.6 -1.4 4.5 0.0 7.9 0.0 0.0 -1.4 12.4
Total consolidation & special effects 115.9 13.5 -6.0 5.2 0.0 0.0 109.9 18.7 73.9 304.5 31.6 31.2 -2.4 0.0 103.1 335.7
Adjusted operating result (adj. EBIT) 1 409.1 455.4 562.7 526.5 -32.5 -27.7 939.3 954.2 1,593.3 1,676.1 2,256.6 2,305.6 -112.4 -107.2 3,737.5 3,874.5
in % of adjusted sales 8.2% 8.4% 16.5% 15.4% 11.2% 10.8% 8.0% 8.1% 16.9% 17.2% 11.2% 11.3%

Source: Based on publicly available data

6) Fact Sheets Continental's Credit Rating

  • 1 Solicited rating since May 2000.
  • 2 Non-contracted rating since Feb. 1, 2014.
  • 3 Solicited rating since November 2013.

Preliminary FY 2014 Results – March 5, 2015

References Useful Links

Continental
Investor Relations website		 http://www.continental-ir.com
Annual and interim reports http://www.continental
corporation.com/www/portal_com_en/themes/ir/financial_reports/
2014 Fact Book http://www.continental
corporation.com/www/portal_com_en/themes/ir/financial_reports/
Investor Relations
events and presentations		 http://www.continental-corporation.com/www/portal_com_en/themes/ir/events/
Sustainability at Continental
(presentation and fact
sheet for
investors)		 http://www.continental-ir.com
Corporate Social Responsibility http://www.continental-sustainability.com
Corporate Governance Principles http://www.continental
corporation.com/www/portal_com_en/themes/ir/corporate_governance/
Continental share http://www.continental-corporation.com/www/portal_com_en/themes/ir/share/
Continental bonds and rating http://www.continental-corporation.com/www/portal_com_en/themes/ir/bonds/
Continental IR mobile website http://continental.ir-portal.de

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