Continental AG

Earnings Release • May 10, 2023

Quarterly Statement as at March 31, 2023

Continental Starts 2023 with Solid Results

› Consolidated sales of €10.3 billion (Q1 2022: €9.3 billion, +11.1 percent)

› Adjusted EBIT of €578 million (Q1 2022: €428 million, +35.0 percent)

› Adjusted EBIT margin of 5.6 percent (Q1 2022: 4.6 percent)

› Operating result (EBIT) of €531 million (Q1 2022: €375 million, +41.5 percent)

› Net income of €382 million (Q1 2022: €240 million, +59.6 percent)

› Adjusted free cash flow of -€949 million (Q1 2022: -€174 million)

› Outlook for 2023 unchanged: consolidated sales of around €42 billion to €45 billion; adjusted EBIT margin of around 5.5 to 6.5 percent

Continental started 2023 with solid results, in line with its expectations. We anticipate a further improvement in earnings over the course of the year, in particular due to rising production figures for passenger cars and light commercial vehicles, inflation-related price adjustments and cost discipline. As a result of inflation, the company is expected to incur additional costs in 2023 of around €1.7 billion for materials, wages and salaries as well as energy and logistics. Continental is maintaining its outlook for 2023.

Despite challenging market and other external conditions, the earnings performance of the Automotive, Tires and ContiTech group sectors in the first quarter of 2023 was encouraging. Year-on-year, Automotive was able to make a significant improvement. As anticipated, earnings were below our full-year forecast, and we expect these to increase as the year progresses.

Increase in automotive production in the first quarter of 2023

The global production of passenger cars and light commercial vehicles weakened slightly compared with the fourth quarter of 2022 (Q4 2022: 21.9 million units) but increased year-on-year, according to preliminary figures. Compared with the first quarter of 2022, it rose by around 6 percent to 21.1 million units (Q1 2022: 19.9 million units). Vehicle production in Europe in particular grew to around 4.5 million units in the period from January to March 2023 (+17 percent). North America recorded an increase of around 10 percent to 3.9 million units. China, by contrast, suffered a weaker start to the year, producing around 5.7 million vehicles in the first quarter of 2023. This was about 8 percent down year-on-year.

Consolidated sales in the first quarter of €10.3 billion; adjusted EBIT margin of 5.6 percent

In the first quarter of 2023, Continental achieved consolidated sales of €10.3 billion (Q1 2022: €9.3 billion, +11.1 percent). Its adjusted operating result (adjusted EBIT) was €578 million (Q1 2022: €428 million, +35.0 percent), corresponding to an adjusted EBIT margin of 5.6 percent (Q1 2022: 4.6 percent). Net income in the first quarter was €382 million (Q1 2022: €240 million, +59.6 percent). Adjusted free cash flow amounted to -€949 million (Q1 2022: -€174 million). The negative free cash flow was the result of increased inventories to secure supply chains as well as a high level of receivables. Continental has already introduced measures to optimize both of these over the course of the year.

Development of the group sectors

In the Automotive group sector, sales increased by 18.1 percent to €5.0 billion (Q1 2022: €4.2 billion). With its sales growing organically by 17.1 percent before exchange-rate effects and changes in the scope of consolidation and global automotive production rising only by around 6 percent, the group sector again outperformed the market. At 0.8 percent, the adjusted EBIT margin was considerably higher than in the first quarter of the previous year (Q1 2022: -4.1 percent). Owing to the additional inflation-related costs of around €1 billion in 2023 in Automotive alone, price agreements are again being negotiated in partnership with customers. These agreements, coupled with rising automotive production, should lead to an improvement in the margin over the course of the year. This improvement should also be bolstered by operational measures such as the stabilization of supply chains, the program to improve efficiency in research and development, and savings under the Transformation 2019–2029 structural program. In addition, Continental recorded a high order volume in the Automotive group sector. This amounted to around €6.6 billion (+13.3 percent) in the first three months of 2023 and included a major order in the Autonomous Mobility business area worth around €1.7 billion for 360-degree radar coverage from front, rear, side and longrange radars. They ensure the all-round monitoring of a vehicle's surroundings, thus increasing road safety.

The Tires group sector had a good first quarter. Despite declining volumes in the tire-replacement business, sales in Tires increased to €3.5 billion (Q1 2022: €3.3 billion, +5.1 percent) and its adjusted EBIT margin was 13.5 percent (Q1 2022: 17.1 percent). The margin was lower year-on-year because of the difference in inventory valuations, with increased raw material costs at the beginning of 2022 having a positive impact on valuations and therefore on earnings.

The ContiTech group sector took a step forward in the first quarter, posting sales of €1.7 billion (Q1 2022: €1.6 billion, +10.2 percent) and an adjusted EBIT margin of 6.4 percent, compared with 2.3 percent in the fourth quarter of 2022 (Q1 2022: 5.3 percent). In particular, the stabilization of production processes and price adjustments due to inflation contributed to its improved earnings.

From May 2023, ContiTech will also be strategically realigned. The group sector, which specializes in material applications, will step up its focus on expanding its industrial business. ContiTech will also consolidate its automotive original-equipment business to generate synergies. With this realignment, ContiTech will create the conditions required for its development from a conventional product supplier to a provider of integrated solutions.

Sales in the Contract Manufacturing group sector were €154 million in the first quarter of 2023 (Q1 2022: €210 million), and the adjusted EBIT margin was 6.2 percent (Q1 2022: 5.8 percent).

Market outlook and forecast for fiscal 2023 unchanged

For 2023, Continental expects global production of passenger cars and light commercial vehicles to increase by 2 to 4 percent year-onyear. For the tire-replacement business, we expect a slight recovery in demand of 1 to 3 percent for the year as a whole. The industrial business is currently showing signs of stabilizing at the previous year's level in the eurozone; in the USA we anticipate a figure of between -2 and 0 percent for the year as a whole, and in China we expect a recovery in demand of 4 to 6 percent. Significantly higher costs for materials, wages and salaries as well as energy and logistics – amounting to around €1.7 billion – are again expected to weigh heavily on our earnings position in fiscal 2023.

Based on all of the assumptions mentioned as well as current exchange rates, Continental continues to expect the following key financial figures for fiscal 2023:

• › For the Continental Group, we expect sales in the range of around €42 billion to €45 billion and an adjusted EBIT margin of around 5.5 to 6.5 percent.
• › For our Automotive group sector, we anticipate sales of around €20.5 billion to €21.5 billion and an adjusted EBIT margin of around 2 to 3 percent. This includes higher costs for materials, wages and salaries as well as logistics of around €1 billion.
• › For our Tires group sector, we expect sales of around €14.5 billion to €15.5 billion and an adjusted EBIT margin of around 12 to 13 percent. This includes the expected negative impact from higher costs for wages and salaries as well as energy and logistics of around €400 million.
• › For our ContiTech group sector, we expect sales of around €6.8 billion to €7.2 billion and an adjusted EBIT margin of around 6 to 7 percent. This includes the expected negative impact from higher costs for materials, wages and salaries as well as energy of around €300 million.
• › In the Contract Manufacturing group sector, we anticipate sales of around €400 million to €600 million and an adjusted EBIT margin of around 0 percent.
• › As in the previous year, consolidated amortization from purchase price allocations is again expected to be below €150 million and affect mainly the Automotive and ContiTech group sectors.
• › In addition, we expect negative special effects of around €150 million.
• › In 2023, we expect the negative financial result to be around €350 million before effects from currency translation, effects from changes in the fair value of derivative instruments, and other valuation effects.
• › The tax rate is expected to be around 27 percent.
• › The capital expenditure ratio is expected to be around 6 percent of sales in fiscal 2023.
• › In 2023, we are planning on adjusted free cash flow of approximately €0.8 billion to €1.2 billion.

This outlook takes into account the current anticipated impact of certain ongoing supply shortages, particularly for semiconductors, on production volumes in 2023.

Key Figures for the Continental Group

	January 1 to March 31
Continental Group in € millions	2023	2022
Sales	10,306.1	9,278.3
EBITDA	1,070.1	932.3
in % of sales	10.4	10.0
EBIT	531.1	375.3
in % of sales	5.2	4.0
Net income attributable to the shareholders of the parent1	382.2	239.5
Basic earnings per share in €1	1.91	1.20
Diluted earnings per share in €1	1.91	1.20
Research and development expenses (net)2,3	790.6	745.5
in % of sales2,3	7.7	8.0
Depreciation and amortization4	539.0	557.0
thereof impairment5	0.4	–3.1
Capital expenditure6	429.0	444.3
in % of sales	4.2	4.8
Operating assets as at March 31	20,864.0	19,800.4
Number of employees as at March 317	202,929	192,396
Adjusted sales8	10,283.2	9,278.3
Adjusted operating result (adjusted EBIT)9	578.3	428.4
in % of adjusted sales	5.6	4.6
Free cash flow	–952.0	–173.2
Net indebtedness as at March 31	5,539.1	4,117.0
Gearing ratio in %1	39.4	30.0

1 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

2 In the year under review, the methodology used for the presentation of income and expenses in connection with specific warranties, restructuring measures, severance payments, as well as impairment and reversal of impairment losses on intangible assets and property, plant and equipment was changed. They are now assigned to the relevant

functional areas. The comparative period has been adjusted accordingly. 3 The assignment of income and expenses from certain business activities within the functional areas has been changed. The comparative period has been adjusted accordingly.

4 Excluding impairment on financial investments.

5 Impairment also includes necessary reversals of impairment losses. 6 Capital expenditure on property, plant and equipment, and software.

7 Excluding trainees.

8 Before changes in the scope of consolidation.

Key Figures for the Group Sectors

		January 1 to March 31
Automotive in € millions	2023	2022
Sales	5,015.2	4,246.0
EBITDA	269.3	60.1
in % of sales	5.4	1.4
EBIT	15.6	–204.3
in % of sales	0.3	–4.8
Research and development expenses (net)1,2	662.4	626.1
in % of sales1,2	13.2	14.7
Depreciation and amortization3	253.7	264.4
thereof impairment4	0.3	1.2
Capital expenditure5	221.3	261.7
in % of sales	4.4	6.2
Operating assets as at March 31	9,099.2	8,635.8
Number of employees as at March 316	100,719	91,414
Adjusted sales7	5,015.2	4,246.0
Adjusted operating result (adjusted EBIT)8	38.5	–172.6
in % of adjusted sales	0.8	–4.1

		January 1 to March 31
Tires in € millions	2023	2022
Sales	3,462.5	3,295.2
EBITDA	659.9	765.2
in % of sales	19.1	23.2
EBIT	457.7	557.9
in % of sales	13.2	16.9
Research and development expenses (net)1	84.5	79.9
in % of sales1		2.4 2.4
Depreciation and amortization3	202.1	207.3
thereof impairment4		0.0 0.1
Capital expenditure5	160.8	126.8
in % of sales		4.6 3.8
Operating assets as at March 31	7,808.1	7,212.8
Number of employees as at March 316	57,573	56,758
Adjusted sales7	3,462.5	3,295.2
Adjusted operating result (adjusted EBIT)8	468.6	565.0
in % of adjusted sales	13.5	17.1

1 In the year under review, the methodology used for the presentation of income and expenses in connection with specific warranties, restructuring measures, severance payments, as well as impairment and reversal of impairment losses on intangible assets and property, plant and equipment was changed. They are now assigned to the relevant functional areas. The comparative period has been adjusted accordingly.

2 The assignment of income and expenses from certain business activities within the functional areas has been changed. The comparative period has been adjusted accordingly. 3 Excluding impairment on financial investments.

4 Impairment also includes necessary reversals of impairment losses.

5 Capital expenditure on property, plant and equipment, and software.

6 Excluding trainees.

7 Before changes in the scope of consolidation.

		January 1 to March 31
ContiTech in € millions	2023	2022
Sales	1,730.8	1,570.4
EBITDA	172.0	144.3
in % of sales	9.9	9.2
EBIT	96.4	69.3
in % of sales	5.6	4.4
Research and development expenses (net)1	43.6	39.5
in % of sales1	2.5	2.5
Depreciation and amortization2	75.6	75.0
thereof impairment3	—	–4.4
Capital expenditure4	41.5	38.5
in % of sales	2.4	2.5
Operating assets as at March 31	3,262.4	3,204.2
Number of employees as at March 315	42,276	41,314
Adjusted sales6	1,707.9	1,570.4
Adjusted operating result (adjusted EBIT)7	109.2	83.3
in % of adjusted sales	6.4	5.3

		January 1 to March 31
Contract Manufacturing in € millions	2023	2022
Sales	154.3	209.9
EBITDA	16.4	21.2
in % of sales	10.6	10.1
EBIT	9.5	11.7
in % of sales	6.1	5.6
Research and development expenses (net)1	0.0	0.0
in % of sales1	0.0	0.0
Depreciation and amortization2	6.9	9.5
thereof impairment3	—	—
Capital expenditure4	1.0	2.0
in % of sales	0.6	1.0
Operating assets as at March 31	496.6	662.6
Number of employees as at March 315	1,845	2,439
Adjusted sales6	154.3	209.9
Adjusted operating result (adjusted EBIT)7	9.5	12.1
in % of adjusted sales	6.2	5.8

1 In the year under review, the methodology used for the presentation of income and expenses in connection with specific warranties, restructuring measures, severance payments, as well as impairment and reversal of impairment losses on intangible assets and property, plant and equipment was changed. They are now assigned to the relevant functional areas. The comparative period has been adjusted accordingly.

2 Excluding impairment on financial investments.

3 Impairment also includes necessary reversals of impairment losses.

4 Capital expenditure on property, plant and equipment, and software.

5 Excluding trainees.

6 Before changes in the scope of consolidation.

Consolidated Statement of Income

This quarterly statement was prepared in accordance with the accounting and measurement methods described in the International Financial Reporting Standards (IFRS) applicable at the end of the reporting period and endorsed by the European Union.

		January 1 to March 31
€ millions	2023	2022
Sales	10,306.1	9,278.3
Cost of sales1,2	–8,036.7	–7,291.0
Gross margin on sales1,2	2,269.5	1,987.3
Research and development expenses1,2	–1,029.5	–971.8
Selling and logistics expenses1,2	–623.5	–574.6
Administrative expenses1	–304.4	–258.9
Other income1	360.5	312.9
Other expenses1	–145.5	–123.7
Income from equity-accounted investees	3.9	4.1
Other income from investments	0.2	—
EBIT	531.1	375.3
Interest income3	22.5	36.5
Interest expense	–86.1	–48.1
Effects from currency translation	29.3	5.3
Effects from changes in the fair value of derivative instruments, and other valuation effects	0.3	–30.9
Financial result3	–34.0	–37.2
Earnings before tax3	497.1	338.1
Income tax expense	–104.5	–89.8
Net income3	392.6	248.3
Non-controlling interests	–10.4	–8.8
Net income attributable to the shareholders of the parent3	382.2	239.5
Basic earnings per share in €3	1.91	1.20
Diluted earnings per share in €3	1.91	1.20

1 In the year under review, the methodology used for the presentation of income and expenses in connection with specific warranties, restructuring measures, severance payments, as well as impairment and reversal of impairment losses on intangible assets and property, plant and equipment was changed. They are now assigned to the relevant functional areas. The comparative period has been adjusted accordingly.

2 The assignment of income and expenses from certain business activities within the functional areas has been changed. The comparative period has been adjusted accordingly. 3 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

Consolidated Statement of Comprehensive Income

	January 1 to March 31
€ millions	2023	2022
Net income1	392.6	248.3
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans2	–27.1	689.7
Fair value adjustments2	–32.0	694.4
Currency translation2	4.9	–4.7
Other investments	–49.8	0.0
Fair value adjustments2	–50.1	0.1
Currency translation2	0.3	–0.1
Tax on other comprehensive income	13.6	–196.3
Items that may be reclassified subsequently to profit or loss
Currency translation2	4.7	315.4
Effects from currency translation2	4.7	315.4
Other comprehensive income	–58.6	808.8
Comprehensive income1	334.0	1,057.1
Attributable to non-controlling interests	–5.5	–14.8
Attributable to the shareholders of the parent1	328.5	1,042.3

1 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

2 Including non-controlling interests.

Consolidated Statement of Financial Position

Assets

€ millions	March 31, 2023	December 31, 2022	March 31, 2022
Goodwill	3,199.7	3,218.2	3,740.1
Other intangible assets	921.4	973.7	1,047.4
Property, plant and equipment	11,408.6	11,467.2	11,499.8
Investment property	11.5	11.5	12.0
Investments in equity-accounted investees	307.5	305.1	313.1
Other investments	120.5	170.0	171.2
Deferred tax assets1	2,157.7	2,059.2	2,233.0
Defined benefit assets	94.9	93.1	104.3
Long-term derivative instruments and interest-bearing investments	101.3	105.8	82.5
Long-term other financial assets	263.3	270.0	249.9
Long-term other assets	113.0	114.9	114.3
Non-current assets1	18,699.4	18,788.7	19,567.6
Inventories	7,193.9	6,729.6	5,562.3
Trade accounts receivable	8,429.9	7,767.7	7,807.1
Short-term contract assets	122.5	99.8	116.5
Short-term other financial assets	128.4	140.0	138.5
Short-term other assets	1,136.1	1,033.8	1,182.2
Income tax receivables	285.2	277.6	304.6
Short-term derivative instruments and interest-bearing investments	119.6	101.5	128.4
Cash and cash equivalents	2,252.1	2,988.0	2,323.9
Assets held for sale	—	—	7.0
Current assets	19,667.6	19,138.0	17,570.5
Total assets1	38,367.0	37,926.7	37,138.1

1 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

Equity and liabilities

€ millions	March 31, 2023	December 31, 2022
Issued/subscribed capital	512.0	512.0	512.0
Capital reserves	4,155.6	4,155.6	4,155.6
Retained earnings1	10,292.7	9,910.5	10,523.4
Other comprehensive income	–1,372.6	–1,318.9	–1,932.7
Equity attributable to the shareholders of the parent1	13,587.7	13,259.2	13,258.3
Non-controlling interests	469.2	475.8	461.5
Total equity1	14,056.9	13,735.0	13,719.8
Long-term employee benefits	2,685.3	2,623.5	4,102.0
Deferred tax liabilities	58.3	57.5	116.2
Long-term provisions for other risks and obligations	641.2	624.1	775.9
Long-term indebtedness	3,982.3	4,006.0	4,606.1
Long-term other financial liabilities	9.8	10.0	10.4
Long-term contract liabilities	6.6	7.8	7.5
Long-term other liabilities	28.3	31.0	33.2
Non-current liabilities	7,411.7	7,359.9	9,651.3
Short-term employee benefits	1,467.1	1,274.7	1,384.6
Trade accounts payable	7,368.2	7,637.0	6,511.7
Short-term contract liabilities	206.6	232.4	232.1
Income tax payables1	526.0	525.7	503.4
Short-term provisions for other risks and obligations1	956.5	1,036.8	1,076.9
Short-term indebtedness	4,029.8	3,688.7	2,045.7
Short-term other financial liabilities	1,588.7	1,763.8	1,157.5
Short-term other liabilities	755.6	672.7	855.1
Current liabilities1	16,898.4	16,831.8	13,767.0
Total equity and liabilities1	38,367.0	37,926.7	37,138.1

1 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

Consolidated Statement of Cash Flows

	January 1 to March 31
€ millions	2023	2022
Net income1	392.6	248.3
Income tax expense	104.5	89.8
Financial result1	34.0	37.2
EBIT	531.1	375.3
Interest paid	–53.8	–14.4
Interest received	32.5	11.2
Income tax paid	–167.6	–108.3
Dividends received	0.6	0.4
Depreciation, amortization, impairment and reversal of impairment losses	539.0	557.0
Income from equity-accounted investees and other investments, incl. impairment and reversal of impairment losses	–4.1	–4.1
Gains/losses from the disposal of assets, companies and business operations	–2.5	–1.1
Changes in
inventories	–467.2	–474.3
trade accounts receivable	–633.3	–608.9
trade accounts payable	–290.9	559.8
employee benefits and other provisions	141.1	99.4
other assets and liabilities	–219.7	–267.7
Cash flow arising from operating activities	–594.9	124.3
Cash flow from the disposal of assets	13.5	11.8
Capital expenditure on property, plant and equipment, and software	–361.3	–301.3
Capital expenditure on intangible assets from development projects and miscellaneous	–6.7	–8.7
Cash flow from the disposal of companies and business operations	—	–1.0
Acquisition of companies and business operations	–2.6	1.7
Cash flow arising from investing activities	–357.1	–297.5
Cash flow before financing activities (free cash flow)	–952.0	–173.2
Repayment of lease liabilities2	–77.6	–79.9
Change in other indebtedness2	342.3	246.3
Change in derivative instruments and interest-bearing investments2	–24.4	16.0
Other cash changes	–3.6	1.0
Dividends paid to and cash changes from equity transactions with non-controlling interests	–4.3	0.5
Cash flow arising from financing activities	232.4	183.9
Change in cash and cash equivalents	–719.6	10.7
Cash and cash equivalents at the beginning of the reporting period	2,988.0	2,269.1
Effect of exchange-rate changes on cash and cash equivalents	–16.3	44.1
Cash and cash equivalents at the end of the reporting period	2,252.1	2,323.9

1 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly. 2 The presentation of the change in indebtedness was revised in the 2022 annual report. The previous year's figures have been adjusted accordingly.

Consolidated Statement of Changes in Equity

						Difference from
€ millions	Issued/ subscribed capital1	Capital reserves	Retained earnings2	Successive purchases	remeasurement of defined benefit plans	currency translation	financial instruments3	Subtotal2	Non controlling interests	Total2
As at January 1, 20222	512.0	4,155.6	10,283.9	–311.8	–1,994.9	–507.8	79.0	12,216.0	452.5	12,668.5
Net income2	—	—	239.5	—	—	—	—	239.5	8.8	248.3
Other comprehensive income	—	—	—	—	493.2	309.6	0.0	802.8	6.0	808.8
Net profit for the period2	—	—	239.5	—	493.2	309.6	0.0	1,042.3	14.8	1,057.1
Dividends paid/resolved	—	—	—	—	—	—	—	—	–10.7	–10.7
Other changes4	—	—	—	—	—	—	—	—	4.9	4.9
As at March 31, 20222	512.0	4,155.6	10,523.4	–311.8	–1,501.7	–198.2	79.0	13,258.3	461.5	13,719.8
As at January 1, 2023	512.0	4,155.6	9,910.5	–311.8	–773.9	–295.9	62.7	13,259.2	475.8	13,735.0
Net income	—	—	382.2	—	—	—	—	382.2	10.4	392.6
Other comprehensive income	—	—	—	—	–16.6	9.7	–46.8	–53.7	–4.9	–58.6
Net profit for the period	—	—	382.2	—	–16.6	9.7	–46.8	328.5	5.5	334.0
Dividends paid/resolved	—	—	—	—	—	—	—	—	–12.1	–12.1
As at March 31, 2023	512.0	4,155.6	10,292.7	–311.8	–790.5	–286.2	15.9	13,587.7	469.2	14,056.9

1 Divided into 200,005,983 (PY: 200,005,980) outstanding shares with dividend and voting rights.

2 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. For more information, see Note 2 (General Information and Accounting Principles) of the notes to the consolidated financial statements in the 2022 annual report. The comparative period has been adjusted accordingly.

3 The change in the difference arising from financial instruments, including deferred taxes, was due to other investments of -€46.8 million (PY: €0.0 million).

4 Other changes in non-controlling interests due to changes in the scope of consolidation and capital increases.

Segment Reporting

Segment report for the period from January 1 to March 31, 2023

€ millions	Automotive	Tires	ContiTech	Contract Manufacturing	Other/ Holding/ Consolidation	Continental Group
External sales	5,012.2	3,433.4	1,706.6	153.9	—	10,306.1
Intercompany sales	3.0	29.1	24.2	0.4	–56.7	—
Sales (total)	5,015.2	3,462.5	1,730.8	154.3	–56.7	10,306.1
EBIT (segment result)	15.6	457.7	96.4	9.5	–48.1	531.1
in % of sales	0.3	13.2	5.6	6.1	—	5.2
Depreciation and amortization1	253.7	202.1	75.6	6.9	0.6	539.0
thereof impairment2	0.3	0.0	—	—	—	0.4
Capital expenditure3	221.3	160.8	41.5	1.0	4.4	429.0
in % of sales	4.4	4.6	2.4	0.6	—	4.2
Operating assets as at March 31	9,099.2	7,808.1	3,262.4	496.6	197.6	20,864.0
Number of employees as at March 314	100,719	57,573	42,276	1,845	516	202,929
Adjusted sales5	5,015.2	3,462.5	1,707.9	154.3	–56.7	10,283.2
Adjusted operating result (adjusted EBIT)6	38.5	468.6	109.2	9.5	–47.5	578.3
in % of adjusted sales	0.8	13.5	6.4	6.2	—	5.6

1 Excluding impairment on financial investments.

2 Impairment also includes necessary reversals of impairment losses.

3 Capital expenditure on property, plant and equipment, and software.

4 Excluding trainees.

5 Before changes in the scope of consolidation.

6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

Segment report for the period from January 1 to March 31, 2022

€ millions	Automotive	Tires	ContiTech	Contract Manufacturing	Other/ Holding/ Consolidation	Continental Group
External sales	4,245.5	3,270.4	1,552.5	209.9	—	9,278.3
Intercompany sales	0.5	24.8	17.9	0.0	–43.2	—
Sales (total)	4,246.0	3,295.2	1,570.4	209.9	–43.2	9,278.3
EBIT (segment result)	–204.3	557.9	69.3	11.7	–59.3	375.3
in % of sales	–4.8	16.9	4.4	5.6	—	4.0
Depreciation and amortization1	264.4	207.3	75.0	9.5	0.8	557.0
thereof impairment2	1.2	0.1	–4.4	—	—	–3.1
Capital expenditure3	261.7	126.8	38.5	2.0	15.3	444.3
in % of sales	6.2	3.8	2.5	1.0	—	4.8
Operating assets as at March 31	8,635.8	7,212.8	3,204.2	662.6	85.0	19,800.4
Number of employees as at March 314	91,414	56,758	41,314	2,439	471	192,396
Adjusted sales5	4,246.0	3,295.2	1,570.4	209.9	–43.2	9,278.3
Adjusted operating result (adjusted EBIT)6	–172.6	565.0	83.3	12.1	–59.3	428.4
in % of adjusted sales	–4.1	17.1	5.3	5.8	—	4.6

1 Excluding impairment on financial investments.

2 Impairment also includes necessary reversals of impairment losses.

3 Capital expenditure on property, plant and equipment, and software.

4 Excluding trainees.

5 Before changes in the scope of consolidation.

Reconciliation of sales to adjusted sales and of EBITDA to adjusted operating result (adjusted EBIT) from January 1 to March 31, 2023

€ millions	Automotive	Tires	ContiTech	Contract Manufacturing	Other/ Holding/ Consolidation	Continental Group
Sales	5,015.2	3,462.5	1,730.8	154.3	–56.7	10,306.1
Changes in the scope of consolidation1	—	—	–22.9	—	—	–22.9
Adjusted sales	5,015.2	3,462.5	1,707.9	154.3	–56.7	10,283.2
EBITDA	269.3	659.9	172.0	16.4	–47.4	1,070.1
Depreciation and amortization2	–253.7	–202.1	–75.6	–6.9	–0.6	–539.0
EBIT	15.6	457.7	96.4	9.5	–48.1	531.1
Amortization of intangible assets from purchase price allocation (PPA)	15.0	1.7	13.8	—	—	30.5
Changes in the scope of consolidation1	—	—	–2.9	—	—	–2.9
Special effects
Impairment on goodwill	—	—	—	—	—	—
Impairment3	0.3	0.0	—	—	—	0.4
Restructuring	–0.3	0.8	0.0	—	—	0.5
Restructuring-related expenses	4.5	6.1	0.3	—	—	10.9
Severance payments	3.3	2.4	1.5	0.0	0.6	7.9
Gains and losses from disposals of companies and business operations	—	—	—	—	—	—
Adjusted operating result (adjusted EBIT)	38.5	468.6	109.2	9.5	–47.5	578.3

1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.

2 Excluding impairment on financial investments.

3 Impairment also includes necessary reversals of impairment losses. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.

Reconciliation of sales to adjusted sales and of EBITDA to adjusted operating result (adjusted EBIT) from January 1 to March 31, 2022

€ millions	Automotive	Tires	ContiTech	Contract Manufacturing	Other/ Holding/ Consolidation	Continental Group
Sales	4,246.0	3,295.2	1,570.4	209.9	–43.2	9,278.3
Changes in the scope of consolidation1	—	—	—	—	—	—
Adjusted sales	4,246.0	3,295.2	1,570.4	209.9	–43.2	9,278.3
EBITDA	60.1	765.2	144.3	21.2	–58.5	932.3
Depreciation and amortization2	–264.4	–207.3	–75.0	–9.5	–0.8	–557.0
EBIT	–204.3	557.9	69.3	11.7	–59.3	375.3
Amortization of intangible assets from purchase price allocation (PPA)	18.5	3.4	16.7	—	—	38.6
Changes in the scope of consolidation1	—	—	–2.2	—	—	–2.2
Special effects
Impairment on goodwill	—	—	—	—	—	—
Impairment3	0.8	—	—	—	—	0.8
Restructuring4	–4.0	0.6	–4.3	–0.1	—	–7.8
Restructuring-related expenses	10.4	0.8	1.3	0.5	—	13.0
Severance payments	6.0	2.4	2.5	0.0	0.0	10.9
Gains and losses from disposals of companies and business operations	—	–0.1	0.0	—	—	–0.1
Adjusted operating result (adjusted EBIT)	–172.6	565.0	83.3	12.1	–59.3	428.4

1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.

2 Excluding impairment on financial investments.

3 Impairment also includes necessary reversals of impairment losses. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.

4 Also includes restructuring-related impairment losses totaling €0.5 million (Automotive €0.4 million; Tires €0.1 million) and a reversal of impairment losses of €4.4 million in the ContiTech segment.

Hanover, April 25, 2023

Continental Aktiengesellschaft The Executive Board

This quarterly statement has been prepared in euros. Unless otherwise stated, all amounts are shown in millions of euros (€ millions). Please note that differences may arise as a result of the use of rounded amounts and percentages.

Financial Calendar

Annual Press Conference	March 8
Analyst and Investor Conference Call	March 8
Annual Shareholders' Meeting	April 27
Quarterly Statement as at March 31, 2023	May 10
Half-Year Financial Report as at June 30, 2023	August 9
Quarterly Statement as at September 30, 2023	November 8

2024
Annual Press Conference	March
Analyst and Investor Conference Call	March
Annual Shareholders' Meeting	April 26
Quarterly Statement as at March 31, 2024	May
Half-Year Financial Report as at June 30, 2024	August
Quarterly Statement as at September 30, 2024	November

Publication Details

Continental Aktiengesellschaft Headquarters Vahrenwalder Strasse 9 30165 Hanover, Germany Phone: +49 511 938-01 Fax: +49 511 938-81770

E-mail: ir@conti.de Commercial register of the Hanover Local Court, HR B 3527

All financial reports are available online at: www.continental-ir.com