Continental AG

Investor Presentation • Mar 29, 2018

Sustainability Presentation JP Morgan Global SRI Conference 2018

Paris – March 14-15, 2018 Rolf Woller, Head of IR

Ticker: CON ADR-Ticker: CTTAY http://www.continental-ir.com Investor Relations

Agenda

1	Continental at a Glance	3
2	Sustainability at Continental	9
3	Environmental Responsibility	12
4	Technologies in the Automotive Group	20
5	Technologies in the Rubber Group	27
6	Outlook	34

Continental Ranks No. 2 in Worldwide Supplier Ranking

Top 10 Global OEM Suppliers – 2017 Sales (€ bn)

¹ Robert Bosch only includes Mobility Solutions division

⁴ Bridgestone including Diversified Products

Source: Company filings. Calendarized to Dec. year-end. Based on average currency exchange rates 2017

² Continental not including ContiTech industrial business and other non-OE automotive business ³ ZF excluding Industrial Technology business

Megatrends in the Automobile Industry

Environment – For Clean Power

CO² Fleet Emission Targets 2020/21 (NEDC)¹

Europe	95g/km2
USA	125g/km
China	117g/km
Japan	122g/km

¹New European Driving Cycle. ²Mandatory for 95% of the OEMs fleets. Source: IC CT Int. Council of Clean Transportation, Global Passenger Vehicle FE/GH G regulations (2/2016).

Information – For Intelligent Driving

Inhabitants by Region¹ Connectivity A&B Production Segment¹ Vehicle Driver and Passenger Devices Infra structure Other Vehicles

Safety – For Safe Mobility

Road Traffic Deaths Number of Road Traffic Deaths per 100,000

Europe and Russia	9.3
Eastern Mediterranean	19.9
Americas	15.9
Africa	26.6
South East Asia	17.0
Western Pacific	17.3

¹Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality. Source: Global Status Report on Road Safety, World Health Organization (WHO) 2015.

Affordable Cars – For Global Mobility

in BRIC (mn units)

Source: IHS February 2018. 1 Including Mini Full-Frame.

A Leading Global Supplier for Key Automotive Electronics Applications

Chassis & Safety

› Actuation

› Advanced driver assistance systems (ADAS)

• › Airbag electronics
• › Electronic brake systems (EBS)
• › Foundation brake systems

€9,768 mn
22%
€898 mn
9.2%

ADAS² installation rate worldwide

$$
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\hline\n\text{2017} & \longrightarrow & \textbf{2022E} \
\end{array}
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Powertrain Interior

• › Diesel injection systems
• › Gasoline injection systems
• › Transmission control units
• › Turbochargers
• › 48 V and plug-in hybrid
• › Full electric vehicle

Sales 2017	€7,661 mn
% of total	17%
Adj. EBIT1	€474 mn
Adj. EBIT margin	6.2%

39%

2022E

Gasoline direct injection systems installation rate worldwide³

2017

• › Body and security products
• › Commercial vehicle interiors
• › Device connectivity and telematics units
• › Instrumentation, displays and human machine interfaces
• › Intelligent transport systems

Sales 2017	€9,305 mn
% of total	21%
Adj. EBIT1	€851 mn
Adj. EBIT margin	9.2%

(%) Market for automotive electronics⁴ (USD bn)

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

² ADAS: Advanced Driver Assistance System. Average amount of ADAS including sensing rear/surround view cameras but w/o parking assist functions based on ultrasonic technology.

³ Source: IHS, February 2018.

⁴ Source: Strategy Analytics: Automotive Electronics System Demand Forecast 2012 to 2021, Jan 2015.

A Leading Global Supplier of Tire and Non-Tire Rubber Products

Tires

ContiTech

Passenger & Light Truck Tires		Commercial Vehicle Tires		› Air springs for railway, trucks and buses
Markets	› EMEA	Markets	› EMEA	› Automotive hoses and hose lines
	› The Americas		› The Americas	› Automotive interior trim
	› APAC		› APAC	› Conveyor belts
Products	› Original Equipment	Products	› Original Equipment	› Elastomer coatings
	› Replacement		› Replacement	› Industrial hoses
	› Summer tires, winter tires, high-performance tires		› Commercial specialty tires	› Multiple V-ribbed belts and timing belts › Vibration absorbers
	Sales 2017	€11,326 mn		Sales 2017	€6,246 mn
	% of total	26%		% of total	14%
	Adj. EBIT1	€2,128 mn		Adj. EBIT1	€515 mn
	Adj. EBIT margin	19.0%		Adj. EBIT margin	8.8%
	Sales breakdown (%)			Sales breakdown (%)
	71% Non-OE	29% OE		49% Non-OE	51% OE

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

Corporate Strategy at a Glance

Hoshin Kanri matrix

JP Morgan SRI Conference 2018 Paris, March 14-15, 2018 EDMR – Equity and Debt Markets Relations 8

2) Sustainability at Continental

Our Policies and Guidelines

Principles of our Corporate Social Responsibility

2) Sustainability at Continental Materiality Matrix

JP Morgan SRI Conference 2018 Paris, March 14-15, 2018

2) Sustainability at Continental Roadmap 2020

In 2015, we developed a consolidated sustainability program and set ourselves goals for 2020 in order to achieve measurable improvement in our four fields of action. Some of these extend until 2025. These are the fields of activity and main goals form our Roadmap 2020:

Environment	Employees and society	Corporate governance and corporate culture	Products
› Climate protection/air › Waste › Water	› Diversity and equal opportunities › Occupational safety and health › Attractiveness as an employer › Job training and continuing education	› Compliance and Supply Chain › Lobbying	› Road and vehicle safety › Raw materials › Sustainable products

For more information please go to the GRI Report 2016, page 12ff.

2) Environmental Responsibility Environmental Strategy 2020

Sustainable management at all stages of the value chain and throughout the entire life cycles of our products is now an essential part of our philosophy.

Paris, March 14-15, 2018 EDMR – Equity and Debt Markets Relations

3) Environmental Responsibility

Status of Environmental Certification at Continental

Continental established an environmental management system throughout the corporation more than 30 years ago.

Our activities are geared toward continually optimizing the use of resources in relation to business volume. We manufacture products that make an active contribution toward protecting the environment and conserving resources throughout their entire duration of use as well as when they are ultimately recycled.

In manufacturing, we are aiming for a 20% reduction in relation to the adjusted sales volume of energy and water consumption, CO² emissions and waste generation by 2020¹ (base year: 2013). At the same time we are doing our best to increase the recycling rate of industrial waste by 2% each year.

3) Environmental Responsibility

Status of Quality Certification at Continental

is the totality of features and characteristics of a product or service Quality that bear on its ability to satisfy a given need.

'The ISO 9000 family addresses various aspects of quality management and contains some of ISO's best known standards.'¹

'The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer's requirements, and that quality is consistently improved.'¹

ISO/TS 16949¹

Specifies requirements using ISO 9001 for service and replacement production in the automobile industry.

	ISO/TS 16949	ISO 9001 or ISO/TS 16949
Automotive Group: Production sites	100%
Rubber Group Tires: Production plants		100%
Rubber Group ContiTech: Production sites		100%

¹ Source: ISO (International Organization of Standardization) www.iso.org/iso/home.html.

3) Environmental Responsibility Certification of Suppliers

Goal by 2020¹ : 100% of strategic suppliers meet ISO 14001 requirements

• 1. Assessments to determine status of the supplier.
• 2. Measures (joint projects, training sessions, and workshops for example) are initiated to achieve our goals in supplier development as necessary.

We monitor the environmentally friendly production of our suppliers ww as part of internal supplier audits. Relevant issues in the scope of these audits include compliance, organization and the provision of resources for EH&S.

Starting in 2017, we will systematically evaluate our suppliers based on sustainability criteria with the help of an independent service provider. Our goal in doing so is to better fulfill our responsibilities and ensure that we are able to comply with our requirements within the worldwide supply chain.

ISO 14001 certified Suppliers Automotive Group 85% 73%

Rubber Group

¹ Roadmap 2020. Source: Sustainability Report 2016, page 22.

and new constructions)

Specific CO2 emissions for plants included in 2013

¹ Reviewed with limited assurance by an independent auditor.

Specific water consumption (m3/€ mn in adjusted sales) for all plants (including acquisitions and new constructions) Specific water consumption for all plants included in 2013

3) Environmental Responsibility

Corporate Environmental Key Performance Indicators

Scope 3 emissions in metric tons of CO²

› Self commissioned incoming logistics	1,152,124
› Self commissioned outgoing logistics	539,058
› Purchased goods and services	8,721,849
› Waste produced through operational processes	20,660
› Fuels and energy-related activities not included in Scope 1 and 2	449,081
Total	10,882,772

For the selected indirect CO² emissions (Scope 3), we follow international standards such as the Corporate Value Chain Accounting and Reporting Protocol of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

3) Environmental Responsibility Sales of Products to Reduce CO² Emissions

3) Environmental Responsibility

Sustainable Product-Solutions for Automotive Industry by Continental

¹ Saving potential compared with gasoline direction injection Euro 5 / NEDC. ² SCR = Selective Catalytic Reduction. ³ DDS = DEKA injector for diesel dosing into exhaust gas.

⁴ TPMS = Tire Pressure Monitoring System. ⁵ POD = Power-On-Demand. ⁶ AES = Advanced Energy Supply.

How to Reach the European CO² Target of about 80g/km

¹ Assumptions for CO² target in the EU by 2025.

Main Driver for CO² Reduction until 2030

Powertrain – Relative Value of Continental's Content¹

Well positioned in all key technologies!

¹ Value of displayed gasoline content per car is indexed at 100%; all other values read relative to the gasoline content.

Powertrain – Solutions for Charging

Battery performance and convenient charging are crucial for the success of electric mobility

Chassis & Safety – History and Roadmap for Accident-Free Driving

Fatal Accidents in Germany 1953 - 2017

*Federal Statistics Office, Germany (Destatis);

ABS - Anti-lock Brake System, ESC - Electronic Stability Control , BA - Brake Assist, ACC - Adaptive Cruise Control, LDW - Lane Departure Warning, AEB – Autonomous Emergency Braking.

Chassis & Safety – Market for Automated Driving: Three-Layer Model

4) Technologies in the Automotive Group Chassis & Safety – Self Driving Car Project CUbE

Continental Urban Mobility Experience

Driving Intelligence

• › Situation analysis
• › Decision-making
• › Low-level vehicle control
• › ADCU (mid-term)

Localization

Robust localization in urban areas

• › Radar
• › Wireless infrastructure beacons

Seat Material

Tailored seat surfaces

• › Resilient
• › Easy to clean
• › Comfortable

Tires

› ContiEcoContact™ 5

Camera Sensing

• › Object detection
• › Barrier detection
• › Front sensor cover drive path

Radar Sensing

Short range sensor

• › Object detection
• › Barrier detection
• › 4 sensors for 360° view

Lidar Sensing

Solid state flash lidar (mid-term)

• › Object detection
• › One axle drive from › Barrier detection
• Continental (2018) › 4 sensors for 360° view

We will become a full system supplier!

5) Technologies in the Rubber Group Tires – Recycling and Recovery

5) Technologies in the Rubber Group Tires – ContiLifeCycle

Breathing life into tires a second and even a third time is the basic idea behind the ContiLifeCycle approach.

Using a novel and proprietary process, Continental has succeeded in recycling rubber from used tires in such a way that the raw material will be directly returned into the production cycle for new or retreaded tires.

At ContiLifeCycle (CLC) plants, we reprocess worn-out truck tires in a retreading process that conserves resources. The rubber powder that is produced during retreading is further processed into recyclate, which is used in the production of new and retreaded tires.

The retreaded tires offer the same performance characteristics and rolling resistance as new tires.

¹Source: United States Environmental Protection Agency (EPA), September 2012

5) Technologies in the Rubber Group Tires – Rubber from Dandelions

› Innovation and the Green Award both at the international trade fair Automechanika 2016

• › Joseph von Fraunhofer Prize 2015
• › GreenTecAward 2014

This natural rubber used from dandelion roots has at least the same quality and performance characteristics as conventional rubber from rubber trees.

The plants can be cultivated in Northern and Western Europe on land that is unsuitable for food crops. "Plantations beside the tire plants" in Central Europe makes both economic and ecological sense.

The new dandelion rubber Taraxagum should enter production within the next five to ten years and then flow step-by-step into our rubber products.

Benefits:

• › Reduction in dependency on harvest situation in subtropical regions
• › Lower requirements on the fertility of the soil
• › Lower environmental impact due to reduced logistic requirements
• › Optimal material properties enable first-class products in terms of technology

¹ Reviewed with limited assurance by an independent auditor.

5) Technologies in the Rubber Group

Sustainable Product-Solutions for a Variety of Industries by ContiTech

Technological expertise for customer-specific solutions

Health-friendly interiors

Printing technology for printed electronics/solar cells

Components for engine downsizing and emissions reducing

Climate-friendly printing blankets

Mounts for wind power

Rubber tracks for more efficiency

Flexible insulation for energy saving

Disclaimer

• › This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the JP Morgan SRI Conference 2018 on March 14&15, 2018, in Paris. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.
• › Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation.
• › This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic as 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 30165 Hanover Germany

E-mail: ir@conti.de Fax: +49 511 938 1080 www.continental-ir.com

Rolf Woller Head of IR Phone: +49 511 938 1068 E-mail: rolf.woller@conti.de

Jana Cross

Assistant to the Head of IR Roadshow and Conference Organization

Phone: +49 511 938 1163 E-mail: jana.cross@conti.de

Michael Saemann Analysts, Institutional Investors and Sustainability Investors	Phone: +49 511 938 1307 E-mail: michael.saemann@conti.de
Klaus Paesler Analysts, Institutional Investors, ADR and Private Investors	Phone: +49 511 938 1316 E-mail: klaus.paesler@conti.de
Christopher Macke Analysts, Institutional Investors	Phone: +49 511 938 1062 E-mail: christopher.macke@conti.de
Sabine Reese Sustainability, ASM, CMD Organization, IR Website, Capital Market Disclosure Requirements	Phone: +49 511 938 1027 E-mail: sabine.reese@conti.de
Marvin Kalberlah Analysts, Institutional Investors Social Media	Phone: +49 511 938 14034 Sustainability Presentation E-mail: marvin.kalberlah@conti.de JP Morgan SRI Conference 2018 Paris, March 14-15, 2018

5) Outlook 2018 PC & LT Production by Quarter¹

Sustainability Presentation JP Morgan SRI Conference 2018 EDMR – Equity and Debt Markets Relations

5) Outlook 2018 Market Outlook

PC & LT¹ Production (mn units)

Worldwide production		2017E	2018E	Chg.
to increase more	Europe	22.1	22.5	+2%
than 1%	North America	17.1	16.8	-2%
	South America	3.3	3.6	+8%
IHS and own estimates	Asia	51.5	52.5	+2%

PC & LT¹ Replacement Tire Market (mn units)

Worldwide replace-		2017E	2018E	Chg.
ment tire market to	Europe	351	358	+2%
increase by 3%	North America	285	290	+2%
	South America	73	76	+4%
LMC and own estimates	Asia	453	475	+5%

¹ Passenger car and light truck <6t ² Medium and heavy vehicles >6t ³ Radial and bias

Commercial Vehicle² Production (k units)

	2017E	2018E	Chg.
Europe	660	673	+2%
North America	513	559	+9%
South America	102	112	+10%
Asia	2,140	2,033	-5%

Commercial Vehicle Replacement³ Tire Market (mn units)

Worldwide replace- ment market to increase by 2% LMC and own estimates		2017E	2018E	Chg.
	Europe	25.3	25.8	+2%
	North America	24.5	25.3	+3%
	South America	15.7	16.4	+5%
	Asia	89.2	91.0	+2%

Sustainability Presentation JP Morgan SRI Conference 2018 Paris, March 14-15, 2018 EDMR – Equity and Debt Markets Relations

5) Outlook 2018

Continental Corporation

	2017	2018E
Consolidated sales adj. EBIT1 margin	€44.0 bn 10.9 %	To increase to ~€47 bn at constant FX rates EBIT1 ~10.5% adj. margin
Automotive Group adj. EBIT1	€26.6 bn €2.2 bn	To increase to ~€28.5 bn at constant FX rates EBIT1 ~8.5% adj. margin
Rubber Group adj. EBIT1	€17.5 bn €2.6 bn	To increase to ~€18.5 bn at constant FX rates EBIT1 ~15% adj. margin
Raw materials cost impact	More than €450 mn for the Rubber Group	Raw materials to burden Rubber Group with about €50 mn, based on current estimates
Special effects	-€14 mn	-€100 mn
Financial result Tax rate	-€187 mn at constant FX2 29%	<-€180 mn at constant FX rates <30%
Capex PPA amortization	€2.9 bn €171 mn	Capex at around 7% of sales ~€180 mn
Free cash flow before acquisitions	€2.3 bn	~€2 bn

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

² Before effects of currency translation and effects from changes in the fair value of derivative instruments and other valuation effects

Sustainability Presentation JP Morgan SRI Conference 2018 Paris, March 14-15, 2018 EDMR – Equity and Debt Markets Relations

² Passenger car and light truck

Paris, March 14-15, 2018 EDMR – Equity and Debt Markets Relations