Fact Book 2015

www.continental-corporation.com © Continental AG Fact Book 2015 | 1 Contents

I. Continental at a Glance Slide Title Page 1 Disclaimer 8 3 More than 140 Years of Progress and Achievement 9 4 Continental Corporation – Sales, EBIT & Net Income 9 5 Continental Ranks No. 2 in Worldwide Supplier Ranking 10 6 Executive Board 10 7 Megatrends in the Automobile Industry 11 8 A Leading Global Supplier for Key Automotive Electronics Applications 11 9 A Leading Global Supplier of Tire and Non-Tire Rubber Products 12 10 Sales by Market 12 11 EBITDA by Group and Corporation 13 12 Consolidated Sales 13 13 Number of Employees 14

II. Continental Strategy Slide Title Page 15 Corporate Strategy at a Glance 15 16 Sustainable Value Creation 15 17 Cost Consciousness – Production in Best-Cost Countries 16 18 Balanced Distribution of Sales 16 19 Top Position for the 20 Fastest Growing Automotive Technologies through 2020 17 20 Continental Corporation Worldwide 17 21 Sales OE Automotive/Non-OE Automotive 18 22 Technological Balance 18 23 The Same Values Worldwide for a Shared Corporate Culture 19 © Continental AG Fact Book 2015 | 2 Contents

III. Automobile Megatrends Slide Title Page 25 We Shape the Megatrends in the Automobile Industry 20

26 Environment: Initiatives in EU, USA and Japan – Towards Lower CO2 Emissions 20 27 Environment: Initiatives for Cleaner Mobility in Various Markets 21 28 Environment: Today’s Vehicle Emissions vs. Future Targets 21 29 Environment: Engine Development Roadmap 22

30 Environment: Reduction of CO2 Emissions: Solutions by Continental 22

31 Environment: How to Reach the European CO2 Target of 75g/km 23 32 Information: Interior: Examples of Market-Specific Initiatives and Projects 23 33 Information: Interior: Information Management – in the Vehicle and Beyond 24 34 Information: Interior: Product Highlights for Intelligent Mobility 24 35 Safety: Market-Specific Initiatives – Towards Safer Mobility 25 36 Safety: Road Traffic Deaths per 100,000 Inhabitants by Region 25 37 Safety: Global Development of Active Safety Regulations & Ratings 26 38 Safety: Euro NCAP 5 Star Rating Requirements 26 39 Safety: History and Roadmap for Accident-Free Driving 27 40 Safety: Future Automotive Trends 27 41 Safety: From Basic to Complex Scenarios; from Single to Networked Systems 28 42 Safety: World Market Forecast for Driver Assistance Systems 28 43 Safety: Winter Tire Regulations 29 44 Safety and Environment: Tire Labeling Initiatives in Europe, USA, Japan, 29 South Korea and Brazil 45 Safety and Environment: Tire Labeling Initiatives in Gulf Countries and China 30 © Continental AG Fact Book 2015 | 3 Contents

IV. Sustainability at Continental Slide Title Page 47 Our Policies and Guidelines 31 48 Corporate Environmental Key Performance Indicators 31 49 Emission Reduction – Electrification Tailored to Fit (48-Volt Eco Drive) 32 50 Emission Reduction – Electrification Tailored to Fit 32 51 Research in Alternative Raw Materials for Tire Production 33 52 Equal Opportunity 33 53 UERÈ Project in Rio de Janeiro, Brazil 34 54 Corporate Memberships (1) 34 55 Corporate Memberships (2) 35 56 Ratings and Indices 35 57 Health and Occupational Safety 36 58 Corporate Bodies 36

V. Continental Corporation Slide Title Page 60 Key Consolidated Figures 37 61 Sales and Adjusted EBIT by Quarter 38 62 Key Historical Financials and Credit Metrics – IAS 19 (rev. 2011) applied 38 63 Net Indebtedness and Gearing Ratio 39 64 Gross Indebtedness by Source 39 65 Maturities for Syndicated Loan and Bonds 40 66 Purchasing – Production Materials 2015 40 67 Raw Material Prices 41 © Continental AG Fact Book 2015 | 4 Contents

VI. Market Data Slide Title Page 69 Installation Rates of Electronic Brake Systems 42 70 Installation Rates of Fuel Injection Systems 42 71 Development of Transmissions Technologies 43 72 Installation Rates of Turbochargers in Gasoline Engines 43 73 Installation Rates of Keyless Entry Systems 44 74 Installation Rates of Multimedia Systems 44 75 Sensors per car of Advanced Driver Assistance Systems 45 76 Rising Volumes of Head-Up Displays 45 77 Production of Passenger Cars and Light Commercial Vehicles (<6t) 46 78 Production of Medium and Heavy Commercial Vehicles (>6t) 46 79 Replacement Tires – Passenger Cars and Light Commercial Vehicles (<6t) 47 80 Replacement Tires – Medium and Heavy Commercial Vehicles (>6t) 47

VII. Automotive Group Slide Title Page 82 Key Figures 48 83 Sales and Adjusted EBIT by Division 49 84 Sales by Market 49 85 Order Intake (LTS) in the Automotive Group €30 bn in 2015 50 86 Production of Passenger Cars and Light Trucks (<6t) 50 87 Opportunities and Challenges in the Medium Term 51 88 Growth Opportunities – Electronic Stability Control (ESC) 51 89 Growth Opportunities – Advanced Driver Assistance Systems (ADAS) 52 90 Growth Opportunities – Vehicle-to-X 52 91 Growth Opportunities – Sensors and Actuators 53 92 Growth Opportunities – Selective Catalytic Reduction 53 93 Growth Opportunities – Gasoline Direct Injection (GDI) 54 94 Growth Opportunities – Gasoline Turbo Chargers (TC) 54 95 Growth Opportunities – 48V Technology 55 96 Growth Opportunities – Tire Information Systems (TIS) 55 97 Growth Opportunities – Driver HMI Displays 56 98 Growth Opportunities – Road Database 56 99 Growth Opportunities – Mirro Replacement 57 © Continental AG Fact Book 2015 | 5 Contents

VII.1. Automotive Group – Chassis & Safety Division Slide Title Page 101 Business Units and Key Products 58 102 Locations Worldwide 58 103 Key Figures 59 104 Sales by Market 59 105 Market Position for Electronic Brake Systems 2015 60 106 Market Position for Foundation Brake Systems 2015 60 107 Market Position for Actuation 2015 61 108 Market Position for Airbag Electronics 2015 61 109 Market Position for Advanced Driver Assistance Systems 2015 62 110 Growing Sales Volume for Electronic Brake Systems 62

VII.2. Automotive Group – Powertrain Division Slide Title Page 112 Business Units and Key Products 63 113 Locations Worldwide 64 114 Key Figures 64 115 Sales by Market 65 116 Market Position for Diesel Injection Systems 2015 65 117 Market Position for Gasoline Injection Systems 2015 66 118 Market Position for Transmission Control Units 2015 66 119 Opportunities and Challenges 67 120 Shared Mobility – Overrated? 67

VII.3. Automotive Group – Interior Division Slide Title Page 122 Business Units and Key Products 68 123 Locations Worldwide 69 124 Key Figures 69 125 Sales by Market 70 126 Market Position for Body & Security 2015 70 127 Market Position for Instrumentation & Driver HMI 2015 71 128 Market Position for Infotainment & Connectivity 2015 71 129 Market Position for Commercial Vehicle 2015 72 © Continental AG Fact Book 2015 | 6 Contents

VIII. Rubber Group Slide Title Page 131 Key Figures 73 132 Sales and Adjusted EBIT by Division 73 133 Sales by Market 74 134 Growth Opportunities – Replacement Tires Demand for PC< Tires 74 135 Growth Opportunities – Improving Tire Mix due to rising SUV & Pick-Up Share 75 136 Additional Tire Production Capacity of 29 mn Units by 2017/18 75 137 Tires: Key Initiatives 2001 – Vision 2025 76 138 Tires Vision 2015 – Towards a more Balanced Footprint 76 139 Cumulative Market for ContiTech Products 77

VIII.1. Rubber Group – Tires Division Slide Title Page 141 Business Units and Tire Brands 78 142 Key Figures 78 143 Sales by Market 79 144 Market Share for Passenger and Light Truck Tires 2015 79 145 Market Share for Truck Tires 2015 80 146 Continental Worldwide PLT Production 2015 80 147 Continental European PLT Production 2015 81 148 Continental Worldwide Truck Tire Production 2015 81 149 Cost of Labor at Continental Manufacturing Sites 82 150 Passenger and Light Truck Tires: Product Mix Improvement 82 151 Passenger and Light Truck Tires: Unit Sales 2010 – 2015 83 152 Commercial Vehicle Tires: Unit Sales 2010 – 2015 83 © Continental AG Fact Book 2015 | 7 Contents

VIII.2. Rubber Group – ContiTech Division Slide Title Page 154 Business Units and Key Products 84 155 Forming a Global Player in Rubber and Plastics Technologies 85 156 Locations Worldwide 85 157 Key Figures 86 158 Sales by Market 86 159 Product Overview 87

IX. Share & Bond Information Slide Title Page 161 Share Data / ADR Data 88 162 Share Price Development vs. Major Stock Indexes 88 163 Common Stock 89 164 Shareholder Structure 89 165 Bond Details 90 166 Development of the Bonds 90 167 Development of Continental’s Credit Rating 91 168 10 Year Financial Overview 91

X. Glossary Slide Title Page 170 Financial Glossary 92 171 Product and Division Glossary 93 172 Contact Data 93 173 Investor Relations Online 94 174 Financial Calendar 94 © Continental AG Fact Book 2015 | 8

Disclaimer

This Fact Book has been prepared by Continental Aktiengesellschaft and includes information available to us as of March 7, 2016. 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 of its affiliates 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 or any other financial investment or exposure 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 Fact Book 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.

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group 82 VIII. Rubber Group 131 IX. Share and Bond Information 161 X. Glossary 170

2 © Continental AG Fact Book 2015 | 9

I. Continental at a Glance 145 Years of Progress and Achievement

Takeover of the European tire operations of Uniroyal, Continental acquires a majority interest in Continental strengthens the tire operations of the Austrian company Semperit, the Slovak company Continental Matador its position in rubber and the North American tire manufacturer General Tire. Rubber s.r.o. and expands its position for the Tire and ContiTech divisions in Central plastic technology by and Eastern Europe. acquiring Veyance Continental- Continental reinforces its activities by Technologies. Caoutchouc- and acquiring Temic, the international Continental strengthens its Gutta-Percha electronics specialist. position in the tire business Compagnie is Continental expands its activities in in Asia by acquiring the Continental expands founded in Continental expands its telematics, among other fields, with Indian tire manufacturer Software and Systems Hanover, tire operations by the acquisition of the automotive Modi Tyres Company Expertise through the Germany. integrating Barum. electronics business from Motorola. Limited. acquisition of Elektrobit.

1993 2001 1871 1979 2006 2012 1985 2007 2011 2013 2014 2015 1929 1987 1998 2003 2004

Merger with major Continental strengthens its Continental acquires Siemens VDO Continental intensifies its companies of the position in the ASEAN Automotive AG and advances to among operations as a complete system German rubber industry market and Australia by the top five suppliers in the automotive supplier for exhaust aftertreatment to form Continental establishing industry worldwide, at the same time by acquiring Emitec. Gummi-Werke AG. its Continental Sime Tyre boosting its market position in Europe, joint venture. North America and Asia. Continental acquires Parker Acquisition of a US Hannifin’s automotive air company’s Automotive conditioning business, the conveyor Through the acquisition of Brake & Chassis unit, belt producer Legg Company and Phoenix, ContiTech becomes the core of which is the conveyor belt activities of Metso. one of the world’s leading Alfred Teves GmbH in specialists for rubber and Frankfurt. plastics technology outside the tire industry. 3

I. Continental at a Glance Continental Corporation – Sales, EBIT & Net Income (NIAT1)

US GAAP IFRS 39,232 In € mn 34,506 32,736 33,331 30,505

26,047 24,239

20,096 4,116

16,619 3,186 3,264 3,345 14,887 2,597 13,837 Sales 12,597 1,935 11,408 11,534 1,507 1,602 1,676 2,727 11,233 2,375 10,115 1,157 855 1,905 1,923 533 694 EBIT 1,242 33 982 1,021 930 -296 1 716 576 NIAT 205 226 314 -1,040 -258

-1,124 -1,649 2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1 Net income attributable to the shareholders of the parent, from 1998 until 2003 US GAAP / from 2004 onwards IFRS. 2 Siemens VDO incorporated starting December 1, 2007. IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly. 4 © Continental AG Fact Book 2015 | 10

I. Continental at a Glance Continental Ranks No. 2 in Worldwide Supplier Ranking

Top 10 Global OEM Suppliers – 2015 Sales (in € bn)

1 Robert Bosch only includes Mobility Solutions division. 45 2 Continental not including ContiTech industrial business. 3 ZF including TRW Automotive since Jan 2015. 4 Bridgestone including Diversified Products. 40 35 30 25 20 15 10 5 0 4 1 2 3 ZF Seiki Aisin Bosch Bosch Robert Mobis Denso Magna Magna Hyundai Michelin Faurecia Faurecia Continental Bridgestone Bridgestone

5 Source: Company filings. Calendarized to December year end. Based on average currency exchange rates 2015.

I. Continental at a Glance Executive Board Dr. Elmar Degenhart Chairman of the Executive Board Dr. Ariane Reinhart Corporate Functions: Corporate Functions: Corporate Quality and Environment, Corporate Communications, Human Relations, Director of Labor Relations, Sustainability Continental Business System, Automotive Central Functions

Wolfgang Schäfer Corporate Functions: Dr. Ralf Cramer Helmut Matschi Finance, Controlling, Compliance, Law, IT Continental China Interior Division Nikolai Setzer Hans-Jürgen Duensing Frank Jourdan ContiTech Division Tire Division Chassis & Safety Division José A. Avila Powertrain Division

6 © Continental AG Fact Book 2015 | 11

I. Continental at a Glance Megatrends in the Automobile Industry Environment – For Clean Power Information – For Intelligent Driving 1 CO2 Fleet Emission Targets 2020/21 (NEDC) Driver and Passenger Devices Infrastructure Other Vehicles

95g/km2

122g/km

125g/km 117g/km

1 New European Driving Cycle. 2 Mandatory for 95% of the OEMs fleets. Vehicle Source: ICCT Int. Council of Clean Transportation, Global Passenger Vehicle FE/GHG regulations (1/2015).

Safety – For Safe Mobility Affordable Cars – For Global Mobility Road Traffic Deaths A&B Production Segment1 in BRIC Number of Road Traffic Deaths per 100,000 Inhabitants by Region1 (mn units) 16,2 Europe and Russia

9.3 12,3

Eastern Mediterranean 19.9 15.9 17.3 Western Pacific Americas 26.6 17.0

Africa South East Asia per 100.000 population 2015 2020E

Source: Global Status Report on Road Safety, World Health Organization (WHO) 2015. 1 Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality. Source: IHS February 2016. 1Including Mini Full-Frame. 7

I. Continental at a Glance A Leading Global Supplier for Key Automotive Electronics Applications

Chassis & Safety Powertrain Interior › Actuation › Diesel injection systems › Body and security products › Advanced driver assistance › Gasoline injection systems › Commercial vehicle interiors systems (ADAS) › Transmission control units › Device connectivity and › Airbag electronics › Turbochargers telematics units › Electronic brake systems (EBS) › 48 V and Plug-In Hybrid › Instrumentation, displays and human machine interfaces › Foundation brake systems › Full Electric Vehicle › Intelligent Transport Systems Sales 2015 €8,450 mn Sales 2015 €7,069 mn Sales 2015 €8,155 mn % of total 21% % of total 18% % of total 21% Adj. EBIT1 €817 mn Adj. EBIT1 €425 mn Adj. EBIT1 €824 mn Adj. EBIT margin 9.7% Adj. EBIT margin 6.1% Adj. EBIT margin 10.2% Gasoline direct injection systems Market for Automotive Electronics3 2 ESC installation rate by markets (%) installation rate by markets (%) (USD bn) 96% 309 88% 235 74% 76% 65% 64%

37% 35%

2015 2020E 2015 2020E 2015 2020E China EU EU NAFTA

1 Before amortization of intangibles from PPA, consolidation and special effects. 2 ESC: Electronic Stability Control is a type of electronic brake system. 3 Source: Strategy Analytics: Automotive Electronics System Demand Forecast 2012 to 2021, Jan 2015. 8 © Continental AG Fact Book 2015 | 12

I. Continental at a Glance A Leading Global Supplier of Tire and Non-Tire Rubber Products Tires ContiTech

Passenger & Light Truck Tires Commercial Vehicle Tires › Automotive hoses and hose lines › Automotive interior trim › Markets › Markets › Conveyor belts › EMEA › EMEA › Industrial hoses › The Americas › The Americas › Multiple V-ribbed belts and › APAC › APAC timing belts › Products › Products › Air springs for railways, trucks & › Original equipment › Original equipment buses › Replacement › Replacement › Vibration absorbers › Winter tires, › Commercial Specialty Tires › Elastomer coatings high performance tires Sales 2015 €10,409 mn Sales 2015 €5,368 mn % of total 26% % of total 14% Adj. EBIT1 €2,109 mn Adj. EBIT1 €435 mn Adj. EBIT margin 20.4% Adj. EBIT margin 10.4% Sales breakdown (%) Sales breakdown (%) OE 29% Non- OE 50% OE 50%

Non- OE 71%

1 Before amortization of intangibles from PPA, consolidation and special effects. 9

I. Continental at a Glance Sales by Market

Automotive Group 2015 Rubber Group 2015 Corporation 2015 €23,575 mn €15,705 mn €39,232 mn

Other countries Other Other 1% countries countries Germany 7% Germany 5% Germany 24% 18% Asia Asia 21% 26% 12% Asia 20%

NAFTA 27% Europe Europe Europe (excluding NAFTA (excluding NAFTA (excluding Germany) 26% Germany) 26% Germany) 36% 28% 23%

10 © Continental AG Fact Book 2015 | 13

I. Continental at a Glance EBITDA by Group and Corporation

Automotive Group 2015 Rubber Group 2015 Corporation 2015 €2,973 mn €3,182 mn €6,001 mn

ContiTech ContiTech Chassis & 18% 9% Chassis & Safety Safety 39% 19% Interior 36%

Powertrain 12%

Tires 42%

Interior Tires 18% Powertrain 82% 25%

I. Continental at a Glance Consolidated Sales

by Market by Division (in bn €) (in bn €) 39.2 39.2 5% 14% 34.5 34.5 33.3 32.7 33.3 5% 20% 32.7 5% 11% 30.5 5% 30.5 11% 11% 5% 20% 12% 26% 18% 19% 17% 6% 28% 28% 26% 29% 22% 22% 22% 22% 19% 21% 20% 20% 20% 20% 28% 33% 30% 30% 30% 18% 19% 19% 19% 19%

21% 26% 25% 24% 23% 22% 21% 21% 21% 22%

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 ContiTech Tires1 1 1 Germany Rest of Europe NAFTA Asia Other markets Commercial Vehicle Tires Passenger and Light Truck Tires Interior Powertrain Chassis & Safety 12 1 Since 2012 reported as Tires. © Continental AG Fact Book 2015 | 14

I. Continental at a Glance Number of Employees

by Market 207,899 by Division 207,899 5% 189,168 189,168 21% 177,762 5% 19% 177,762 169,639 6% 169,639 18% 163,788 163,788 6% 19% 17% 6% 17% 19% 17% 18% 18% 18% 6% 24% 6% 25% 16% 25% 16% 25% 15% 16% 19%

19% 31% 19% 32% 20% 19% 31% 31% 31% 19%

17% 18% 18% 19% 18%

30% 29% 28% 28% 27% 19% 20% 20% 21% 20%

Topics

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II. Continental Strategy Corporate Strategy at a Glance

Urbanization Digitalization

Great people culture Value creation

Technological balance Regional sales balance Value creation is our driving force

Balanced customer portfolio Top market position

In the marktet for the market Automated Driving Electrification

II. Continental Strategy – Value Creation Sustainable Value Creation

21.6% 20.6% 20.8% 20.9% 20.0% 20.3% 19.4% 19.4% 19.3% 19.5% 18.5% 18.6% 17,014 17,008 16,915 16,804 16,625 16,522 16,536 16,727 17,510 18,198 18,910 19,681

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015

12 trailing OA (mn €) trailing ROCE

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.

16 © Continental AG Fact Book 2015 | 16

II. Continental Strategy – Value Creation Cost Consciousness – Production in Best-Cost Countries1

Europe 75% 70%

43% 39% 39% 35% 37% 34% 24% 26%

Chassis & Safety2 Powertrain2 Interior2 Tires3 ContiTech2

Rest of world 96% 97%

71% 68% 63% 61% 60% 54% 52% 52%

Chassis & Safety2 Powertrain2 Interior2 Tires3 ContiTech2

2012 2015 1 All years restated based on new definition of best-cost countries. 2 Based on sales. 17 3 Based on units.

II. Continental Strategy – Regional Sales Balance Balanced Distribution of Sales

2015 Target (medium and long term)

Europe Europe and other countries 51% 20% Asia ≥ 30% ≤ 45% and other countries

29% The Americas ≥ 25%

18 © Continental AG Fact Book 2015 | 17

II. Continental Strategy – Top Market Position Top Position for the 20 Fastest Growing Automotive Technologies through 2020

Examples of technologies

CAGR1 A High growth Gasoline particulate filters Switchable coolant and oil pumps Lane departure warning High growth B Medium growth 25% - 100% Turbo chargers Start-stop systems Medium growth Battery propulsion systems 15% - 24% C Low growth Low growth Electric power steering 5% - 14% Touch screens Adaptive cruise control

1Compound annual growth rate (CAGR). Source: Frost & Sullivan, November 2013 based on 2012 data – forecast of growth rates up to 2020.

II. Continental Strategy – In the Market for the Market Continental Corporation Worldwide

20 © Continental AG Fact Book 2015 | 18

II. Continental Strategy – Balanced Customer Portfolio Sales OE Automotive/Non-OE Automotive

2015 Target 2020

28% Other sectors and end customers 40%

72% Original equipment manufacturers (OEM) 60%

2015: Sales OE Automotive/Non-OE Automotive by Division

Chassis & Safety 100%

Powertrain 99%

Interior 91%

Tires 29%

ContiTech 50%

OE Non-OE 21

II. Continental Strategy – Technological Balance Technological Balance

Introduction Growth Maturity Saturation

Compound annual growth rate ≥ 5 - 10% 0 - 10% ≤ 0% Time

Technology life cycle Technology portfolio share of sales in %

22 © Continental AG Fact Book 2015 | 19

II. Continental Strategy – Great People Culture The Same Values Worldwide for a Shared Corporate Culture

Topics

24 © Continental AG Fact Book 2015 | 20

III. Automobile Megatrends We Shape the Megatrends in the Automobile Industry

Environment – For Clean Power Information – For Intelligent Driving

Safety – For Safe Mobility Affordable Cars – For Global Mobility

III. Automobile Megatrend: Environment Initiatives in EU, USA and Japan – Towards Lower CO2 Emissions EU1 USA3,4 Japan8

5 6 9 EU aims to reduce CO2 emissions by NHTSA and EPA to establish a National ECCJ aims to improve fuel efficiency improvements in vehicle technology: Fuel Efficiency Policy (NFEP): standards by 23.5% 2015 vs. 2004:

› Average CO2 emission target for new › For passenger cars and light trucks › For passenger cars and light duty trucks passenger car registrations: combined, CAFE7 targets to improve (GVW<3.5 t), the aim is to increase › 130 g/km* from 2015 overall fleet average to: average fuel efficiency to: › 95 g/km from 20202 › 35.5 mpg* by 2016 › 16.8 km/l* by 2015 › 54.5 mpg by 2025 › 20.3 km/l* by 2020 › Average CO2 emission target for new light commercial vehicle registrations: › For non compliance with CAFE7 targets › For medium / heavy-duty vehicles › 175 g/km from 2017 penalties are defined (GVW>3.5t), the aim is to increase average fuel efficiency to: › 147 g/km from 2020 › Trucks 7.09 km/l by 2015 › Excess emissions premium for non › Buses 6.30 km/l by 2015 compliance with fleet targets is defined

Test cycle: NEDC (New European Driving Cycle) Test cycle: Federal test procedure/Highway Fuel Test cycle: JC08 (Japanese Cycle) Economy Test) * Gram per kilometer * Kilometers per liter * Miles per gallon Emerging Markets likely to Follow Europe/USA/Japan on Fuel Efficiency Standards

1 Regulations (EC) No. 443/2009 and (EU) No. 510/2011. 2 2020: 95% of fleet; 2021: 100% of fleet. 3 US Federal Register (May 7th, 2010): Light-Duty Vehicle Greenhouse “Gas Emission” Standards and Corporate Average Fuel Economy Standards; Final Rule. 4 US Federal Register (Oct. 15th, 2012): 2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions and Corporate Average Fuel Economy Standards; Final Rule. 5 NHTSA: National Highway Traffic Safety Administration. 6 EPA: Environmental Protection Agency. 7 CAFE: Corporate Average Fuel Economy. 8 Refers to “Act on the Rational Use of Energy” of the Ministry of Economics, Trade and Industry (METI), Ministry of Land, Infrastructure, Transport and Tourism (MLIT). 9 ECCJ: Energy Conservation Center Japan. 26 © Continental AG Fact Book 2015 | 21

III. Automobile Megatrend: Environment Initiatives for Cleaner Mobility in Various Markets

1 Gram CO2 per kilometer, normalized to NEDC 270 Solid dots and lines: historical performance and enacted targets. Solid dots and dashed lines: proposed targets and studies. 240

210

180

150

120

60 2000 2005 2010 2015 2020 2025 US-LDV 2 US-Car EU 34Japan China South Korea Source: International Council on Clean Transportation (ICCT), as at February 2016. Due to different test procedures (U.S. CAFE, NEDC, JC08 and WLTC) the ICCT updated the set of conversion factors. 1 New European Driving Cycle. 2 US light-duty vehicles include light commercial vehicles. 3 In 2020 mandatory for 95% of the OEMs’ fleets. As of 2021 mandatory for 100%. 27 4 China’s target reflects a gasoline fleet scenario. With other fuel types included, the target would be lower.

III. Automobile Megatrend: Environment Today’s Vehicle Emissions vs. Future Targets

Emissions [g CO2/km]

230 210 190 2015 EU Target 170 150 2020/21 130 EU Target 110 90 70 50 30 800 1.000 1.200 1.400 1.600 1.800 2.000 2.200 2.400 GASOLINE HYBRID DIESEL Natural gas drive Weight [kg]

Source: DAT Group, https://www.dat.de/leitfaden/LeitfadenCO2.pdf, as of January 14, 2016.

28 © Continental AG Fact Book 2015 | 22

III. Automobile Megatrend: Environment Engine Development Roadmap World – Combined View

[mio-units] 120

2% 1% 100 10% 21% 3% 2% 1% 11% 2% 80 9% 8% EV 14% Hybrid 3% 24% CNG/LPG 60 26% GDI (NA) 4% GDI (TC) 4% 40 50% PFI (TC) 30% PFI (NA) 20% Diesel 20

20% 19% 17% 0 2015 2020 2025

Source = IHS and Continental estimates. EV = Electric Vehicle; Hybrid = Plug In Hybrid Electric Vehicle, 48 V and Full/Mild Hybrid Electric Vehicle; CNG/LPG = Compressed Naturally Gas/Liquefied Petroleum Gas; GDI = Gasoline Direct Injection; 29 NA = Natural Aspirated; TC = Turbo Charged; PFI = Port Fuel Injection.

III. Automobile Megatrend: Environment 1 Reduction of CO2 Emissions : Solutions by Continental

Full hybrid electric vehicle (FHEV) 20-25%

Compressed Natural Gas (CNG) 15-20%

Piezo common rail injection 10-20%

Mild hybrid electric vehicle (MHEV, 48V) 10-15%

Engine downsizing and turbocharger ~15%

Telematics, ACC, ADAS 5-12%

2 3 SCR systems/DDS 2-5%

Tires (rolling resistance, TPMS 4 ) 2-5%

56 Energy management (POD /AES ) 1-5%

Connected energy management 3-4%

Double clutch transmission (DCT) 3%

5 Transmission (POD ) 1-2% min max

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. 30 6 AES = Advanced Energy Supply. © Continental AG Fact Book 2015 | 23

III. Automobile Megatrend: Environment How to Reach the European CO2 Target of 75g/km

[g CO2/km] Areas of Improvements: 130 127 Vehicle Combustion/Transmission

120 Electrification Eco Innovations / Super Credits

110

100 95

80 75 1

0 2013 2020 2025

1 Assumptions for CO2 target in the EU by 2025.

III. Automobile Megatrend: Information Interior: Examples of Market-Specific Initiatives and Projects

Environment Safety Information

7,9,10,11 › Tire pressure monitoring › eCall › Digital tachograph (DTCO)15 1,2,3,4,5,6 system (TPMS) › Hands-free telephony12 › Electronic onboard recorder › Electric vehicle market › Stolen vehicle tracking13 (EOBR)16 push7,8 › Rear detection system14 › Intelligent transport systems (ITS)7,8

Doing more. Doing more. Doing more. For clean power. For safe mobility. For intelligent driving.

1 Regulation (EC) No. 661/2009 for Passenger Vehicles. 9 Russia ERA specifications - no final rule in place 2 Federal Motor Vehicle Safety Standard No. 138 of NHTSA for passenger vehicles. 10 European Commission Brussels, C(2012) 8509 final. 3 Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan. 11 Recommendation adopted by the European Commission, September 2011. 4 Korean Motor Vehicle Safety Standard (KMVSS) - MLTM Notification 2010-631. 12 Several national laws and regulations in Asia/ Europe/ NAFTA/ Africa. 5 House Bill for Commercial Vehicle Safety - H.R. 4348 29.06.2012 TPMS for 13 CONTRAN 245/2007 - no final rule in place. Motorcoaches. 14 For single-unit trucks. FMVSS 111 - no final rule in place. 6 DG CLIMA 2013 study on TPMS Cost / Benefit for Commercial Vehicles. 15 Proposed revision of Regulation (EEC) No. 3821/85. 7 Directive 2010/40/EU of the European Parliament and of the Council of July 2010. 16 FMCSA Proposed rule 395 January 2011 / President signed legislation 8 COM(2011) 144 final. MAP21 in July 2012. European Projects: ELVIRE = Electric vehicle communication to infrastructure, road services and energy supply. ID4EV = Intelligent dynamics for fully electric vehicles. HeERO = Harmonized eCall European pilot. ERTICO = European road transport telematics implementation coordination organisation. 32 Sim-TD = Safe and intelligent mobility – field test Germany. © Continental AG Fact Book 2015 | 24

III. Automobile Megatrend: Information Interior: Information Management – in the Vehicle and Beyond

Our intuitive and ergonomic human-machine interface (HMI) captures commands, prioritizes We add new functions by providing multiple connections and presents information. to the outside world as well as value-added services. Driver & Passengers Devices Infrastructure Other Vehicles

Vehicle We manage and optimize the information flow by systems integration of components. Our Mission: Information management in the vehicle and beyond – a key to realize “Clean Power” and “Zero Accidents”. 33

III. Automobile Megatrend: Information Interior: Product Highlights for Intelligent Mobility

We inform you well

We connect

All at lower cost

Existing solutions: Innovations: › Freely programmable clusters › Augmented-reality head-up displays › Head-up displays › Intelligent antenna modules › Multimedia and telematics platforms › Connected gateways › Tachographs and fleet management systems › Virtual keys, NFC › Tire information systems › eHorizon › Electronic control units for LED lighting

› Services and apps for Intelligent Transportation Systems (ITS) 34 © Continental AG Fact Book 2015 | 25

III. Automobile Megatrend: Safety Market-Specific Initiatives – Towards Safer Mobility EU USA Japan › Electronic stability control (ESC) › Electronic stability control (ESC) › Electronic stability control (ESC) › mandatory as of Nov. 2011 for all new types of › mandatory since 2011 for all new light › mandatory as of Oct. 2012 for all new vehicles vehicles5 types of passenger cars 1 › mandatory as of Nov. 2014 for all new vehicles › Tire pressure monitoring system (TPMS) › mandatory as of Oct. 2014 for all new 9 › Tire pressure monitoring system (TPMS) › mandatory as of Sept. 2007 for all new passenger cars › mandatory as of Nov. 2012 for all new types of light vehicles6 › Advanced emergency braking system passenger cars › Rear Visibility and lane departure warning › mandatory as of Nov. 2014 for all new passenger › expected to be mandatory for all new cars2 › mandatory as of May 1, 2016 with a phase heavy commercial vehicles and buses in schedule for all vehicles and low-speed following the EU decision10 › Advanced emergency braking system vehicles with a with a gross vehicle weight and lane departure warning rating (GVWR) of 10,000 pounds or less12 Brazil › mandatory as of Nov. 2013 for all new types of heavy commercial vehicles and buses Russia › Anti-lock brake system (ABS) › mandatory as of Nov. 2015 for all new heavy mandatory as of Jan. 2014 for all new 2 › commercial vehicles and buses › Electronic stability control (ESC) passenger cars, after phase-in which 7 › Brake assist system › mandatory as of Jan. 2014 for all new began in 2010 › mandatory as of Nov. 2009 for all new types of types of light vehicles South Korea passenger cars › mandatory as of Jan. 2016 for all new light › mandatory as of Nov. 2011 for all new passenger vehicles8 › Electronic stability control (ESC) cars3 › Tire pressure monitoring system (TPMS) › mandatory as of Jan. 2012 for all new light vehicles11 › Motorcycle anti-lock brake system (ABS) › mandatory as of Jan. 2016 for all new › mandatory as of Jan. 2016 for all new types of types of light vehicles8 › Tire pressure monitoring system (TPMS) vehicles 4 › mandatory as of Jan. 2013 for all new › mandatory as of Jan. 2017 for all new vehicles passenger cars11 Other emerging markets likely to follow EU/USA on ESC regulation 1 Regulation (EC) No. 661/2009; refers to all vehicles of category M and N. 2 Commission Implementation Regulations for (EC) No. 661/2009: 347/2012 (Advanced Emergency Braking Systems); 351/2012 (Lane Departure Warning). 3 Regulation (EC) No. 78/2009; refers to passenger cars for maximum 8 passengers plus driver. 4 COM(2010) 542 from Oct. 2010. ABS mandatory for motorcycles with engine capacity of > 125 ccm. ABS or combined brake system (CBS) mandatory for engine capacity of ≤125 ccm. 5 Federal Motor Vehicle Safety Standard (FMVSS) No. 126 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 6 Federal Motor Vehicle Safety Standard (FMVSS) No. 138 of the National Highway Traffic Safety Administration (NHTSA); refers to vehicles with a gross vehicle weight of ≤4.536 t. 7 CONTRAN 312/2009. 8 Russia Decree 720/2009; refers to passenger cars, buses with a weight of ≤ 5 t and light trucks with a weight of ≤ 3.5 t. 9 Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan. 10 Japan expected to adopt EU regulation. Final decision on timing pending. 11 G/TBT/N/KOR/286 and MLTM Notification 2010-631 (Ministry of Land, Transport and Maritime Affairs). 35 12 Federal Motor Vehicle Safety Standards; Rear Visibility; Final Rule; 49 CFR Part 571.

III. Automobile Megatrend: Safety Road Traffic Deaths per 100,000 Inhabitants by Region1

Over million Europe and Russia people in road accidents die every year 9.3

Eastern Mediterranean 19.9 A further million are injured. 15.9 17.3 Western Pacific Americas 26.6 17.0

Africa Data Source: World Health Organization. South East Asia Global Status Report on Road Safety 2015. Road traffic fatality rates per 100.000 population by WHO region. per 100.000 population

36 © Continental AG Fact Book 2015 | 26

III. Automobile Megatrend: Safety Global Development of Active Safety Regulations & Ratings

ESC AEB RVS V2X Device Light vehicles 2016 (10%) - 2018 (100%)

FCW/LDWS RVS

CIBS & DBS

AEB Passenger vehicles ESC AEB & LDWS Passenger vehicles Commercial vehicles & buses Legislation Consumer Test

decided SAS & AEB RDP & AEB AEB Intersection Pedestrian Bicycle NCAP star-rating AEB & LDWS NCAP star-rating NCAP star-rating NCAP star-rating Legislation Consumer Test

Expected by AEB & LDWS AEB & Continental ESC Commercial LDWS Passenger vehicles & buses NCAP vehicles star-rating

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ESC = Electronic Stability Control; FCWS = Forward Collision Warning System; LDWS = Lane Departure Warning System; AEBS = Advanced Emergency Braking System; CIBS = Crash Imminent Braking System; DBS = Dynamic Brake Support; RVS = Rearview Video System; SAS = Speed Assist System; RDP = Road Departure Protection. NCAP = New Car Assessment Program; EC = European Commission; NHTSA = National Highway Traffic Safety Administration (USA); MLIT = Ministry of Land, Infrastructure, Transport and Tourism (Japan); MLTM = Ministry of Land, Transport and Marine Affairs (South Korea); IIHS = Insurance Institute for Highway Safety.

III. Automobile Megatrend: Safety Euro NCAP 5-Star Rating Requirements

Frontal ODB Seat Belt Reminder Frontal FW ESC Side Barrier Speed Assist System Side Pole LDW / LKA Adult Whiplash Front Safety AEB Inter-Urban (23%) Occupant Assist Whiplash Rear Protection AEB City (8%)

Headform Upper Legform Lower Legform Pedestrian AEB VRU (14%) Child Protection Occupant Protection

AEB: Autonomous Emergency Braking; NCAP: New Car Assessment Program; VRU: Vulnerable Road Users. Source: NCAP, http://www.euroncap.com, as of January 26, 2016. 38 © Continental AG Fact Book 2015 | 27

III. Automobile Megatrend: Safety History and Roadmap for Accident-Free Driving

Construction Site Assist Automated Parking Autonomous Driving

Highway 2015 – 2016: (highly automated) • ACC Construction Site City longitudinal/lateral (highly automated) Stop&Go • Traffic Jam Assistant (highway) Inter-Urban • Lateral Collision Driver Avoidance Distraction AEB • Emergency Steering > 60 kph Highway Assist Assistant Stop&Go, Cruising, up to 130km/h

Remote AEB City Parking AEB parking < 50 kph Assist Pedestrian

Partially Automated (2016) – Highly Automated (2020) – Fully Automated (> 2025)

2015 2020 > 2025 AEB = Automatic Emergency Brake. ACC = Adaptive Cruise Control. 39

III. Automobile Megatrend: Safety Future Automotive Trends

40 © Continental AG Fact Book 2015 | 28

III. Automobile Megatrend: Safety From Basic to Complex Scenarios; from Single to Networked Systems

= Continental´s Portfolio ! = In Progress

1 Head-Up Display 41

III. Automobile Megatrend: Safety World Market Forecast1 for Driver Assistance Systems

Continental Portfolio Covers all Areas

Continentalʼs 100 USD bn. Portfolio 90 3 E&EA 80 HMI 70 Embedded Controls 60

Mapping 50 2018: Based on Camera, Radar and Lidar, Continental's Cameras 40 SOM2 would be ~25%

4 30 V2X

20 Radar

10 Lidar 0 2015 2020 2025

1 Goldman Sachs Report, Cars 2025: Vol. 3; Monetizing the rise of Autonomous Vehicles; September 17, 2015. 2 Share Of Market. 42 3 Electrical & Electronic Architecture. 4 Vehicle to everything communication. © Continental AG Fact Book 2015 | 29

III. Automobile Megatrend: Safety Winter Tire Regulations1 Europe: Winter Tires Mandatory or Situationally Mandatory

November 1 to April 15 when November 15 to April 1 December 1 to 28 February winter weather conditions prevail Austria Iceland Russia November 15 to April 15 when winter weather conditions prevail December 1 to end of February November 1 to April 1 Bosnia and Herzegovina Latvia Serbia Mandatory when winter November 15 to March 31 when weather conditions prevail November 1 to April 1 roads are snowy/icy Bulgaria Lithuania Slovakia Mandatory when winter November 15 to March 15 when November 1 to March 31 weather conditions prevail winter weather conditions prevail Czech Republic Luxembourg Slovenia November 15 to March 15 when December 1 to March 31 when December 1 to end of February winter weather conditions prevail winter weather conditions prevail Estonia Macedonia Sweden Mandatory when winter December 1 to April 1 for December 1 to end of February weather conditions prevail; commercially used vehicles November 15 to March 31 for trucks Finland Norway Turkey Mandatory when winter weather conditions prevail November 1 to March 31 November 1 to March 31 Germany Romania Ukraine Europe: Winter Tires Partly Mandatory Drivers may be held liable, if they cause an accident with Mandatory on certain roads, marked with signs summer tires mounted when winter weather conditions prevail France Italy Spain Switzerland Canada: Winter Tires Partly Mandatory Mandatory in Québec December 15 to March 15; mandatory on certain roads in the mountains of Canada when winter weather conditions prevail Canada The snowflake symbol: A tire can be marked with this symbol (in addition to the M+S2 marking), if its braking or traction performance on snow exceeds that of a standard reference tire by a certain margin.

1 Source: Continental AG and websites of country ministries, automobile associations and ETRMA (European Tyre and Rubber Manufacturers' Association). 43 2 Mud + snow. The M+S marking is given by the manufacturer and is not linked to a performance definition.

III. Automobile Megatrend: Safety and Environment Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil

EU1 USA2 Japan3 South Korea4 Brazil5

Label proposed by NHTSA3 › Mandatory since November 2012 5 › Mandatory since › Final decision pending › Voluntary since 2010 › Introduced by MKE November 2012 › The NHTSA Tire Fuel › Introduced by JATMA4 › Applies to all tires sold in › Applies to all tires sold. Efficiency Consumer › Applies to replacement South Korea (OE and › Information to be shown: Information Program summer tires for replacement) for rolling resistance proposes to inform passenger cars; passenger cars and light › Available as of April 2015 (fuel efficiency), consumers about the includes information on trucks; includes › Mandatory as of wet grip effect of tires on fuel rolling resistance and information on rolling October 2016 6 (braking performance on efficiency, safety, wet grip performance resistance and wet grip › Introduced by INMETRO wet roads) and and durability › Tires with a grading of A performance › Applies to all tires sold noise performance › The program aims to and above for rolling › The label has to be (with certain exceptions). (external rolling noise). implement a national resistance performance attached to the tread of Includes information on Either directly on the tire tire fuel efficiency are defined as “fuel each tire; for OE tires the rolling resistance, wet by means of a label or in rating system for efficient tires” and are information has to be grip and noise some other way replacement tires, with marked with an provided in the car performance › Self-certification policy the information additional symbol (the manual › Certification to be carried › EU member states are provided to consumers lower of the symbols › Registration of all out by a product responsible for market at the point of sale and above) products required certification body surveillance online accredited by INMETRO 2 1 Regulation (EC) No.1222/2009 of the European Parliament and of the Source: National Highway Traffic Safety Administration (NHTSA). 3 Council and Commission Regulations (EU) No. 228/2011 and (EU) Source: Japan Automobile Tyre Manufacturers Association (JATMA). 4 No.1235/2011. Also implemented in Norway, Switzerland , Turkey, Source: South Korean Ministry of Knowledge Economy (MKE). 5 44 Israel. Source: National Institute of Metrology, Quality and Technology (INMETRO). © Continental AG Fact Book 2015 | 30

III. Automobile Megatrend: Safety and Environment Tire Labeling Initiatives in Gulf Countries and China

SASO1 GSO2 China

› Mandatory since › Mandatory since January › Voluntary as of 2017 November 2015 (truck 2016 (light truck and truck › Introduced by CRIA3 tires as of Nov 2016). tires as of Jan 2017). › Applies to all › Applies to all replacement › Applies to all replacement replacement tires for tires. tires passenger cars › Information to be shown: › Information to be shown: › Information to be rolling resistance (fuel rolling resistance (fuel shown: rolling efficiency) and wet grip efficiency) and wet grip resistance (fuel (braking performance on (braking performance on efficiency), wet grip wet roads). wet roads). (braking performance Directly on the tire by Directly on the tire by on wet roads) and means of a label. means of a label. noise performance › Registration of all products › Registration of all products (external rolling noise). required required

Source: 1 Saudi Standards, Metrology and Quality Organization Standard 2857/2015. 2 Standardization Organization of the Gulf Cooperation Council Countries. 45 3 Chinese Rubber Industry Association (CRIA).

Topics

46 © Continental AG Fact Book 2015 | 31

IV. Sustainability at Continental Our Policies and Guidelines

Principles of Our Corporate Social Responsibility

Environmental Responsibility Social Responsibility Corporate Governance

ESH1 Policy – implements Code of Conduct – Corporate Governance worldwide the responsibility standards for ethics, rules to Policy – to further a for protecting the avoid conflicts of interest responsible management of environment the company focused on OUR BASICS – the value creation guidelines, codex and basic Risk Report –overview of principles of our business our Risk Management activities

OUR BASICS Our Corporate Guidelines

47 1 “Environment”, “Security, Safety” and “Health”.

IV. Environmental Responsibility Corporate Environmental Key Performance Indicators

1,3 1 CO2 Emissions Energy consumption

2,998 2,748 2,789 2,089 1,857 1,974

829 816 659 759 662 771 727 722 613 769 669

2013 2014 2015 2020 2 2013 2014 2015 20202

Scope 1 - direct CO₂ emissions in 1,000t 10,000 GJ Specific energy consumption (GJ/Mio € adjusted sales) Scope 2 - indirect CO₂ emissions from external power stations in 1,000t Specific CO₂ emissions (100kg/Mio € adjusted sales)

Water consumption1 Waste production1

1,642 1,704 1,616 280 291 297

487 480 90 437 394 84 84 85 85 76 84 68

2 2013 2014 2015 2020 2013 2014 2015 2020 2

10,000 m³ Specific water consumption (m³/Mio € adjusted sales) Waste generation (1,000 t) Specific waste generation (100kg/Mio € adjusted sales) Waste recovery (%) 1 Changes to previous figures are due to changed in the data collection. 2 Continental targets. 48 3 Independently verified by KPMG. © Continental AG Fact Book 2015 | 32

IV. Environmental Responsibility Emission Reduction - Electrification Tailored to Fit (48-Volt Eco Drive)

IV. Environmental Responsibility Emission Reduction – Electrification Tailored to Fit

2 5 50 - 90kW 100% EMR3 with Integrated EV 50 – 90 100 Inverter

6 3 EPF 2.8 / EPF Gen. 4 PHEV 5050 - – 90kW 90 50 -- 75% 75  Single and Dual Inverter Technology

4 EPF 2.8 / EPF Gen. 4 HEV 2020 - 40kW– 40 20 - - 30% 30  Single and Dual Inverter Technology

6 - 20kW 10 - 20% Air cooled: < 10kW 48V 6 – 20 10 - 20 Water cooled: >10kW

Advanced engine 12V < 5kW< 5 << 10% 10 Stop/Start @ low cost

E-Motor CO Saving ABCDE 2 Power Potential1

Vehicle Segments 1 Saving Potential Tank-to-Wheel in New European Driving Circle. 2 Electric Vehicle. 3 Plug-in-Hybrid Electric Vehicle. 4 Hybrid Electric Vehicle. 5 Electric Machine Reducer. 50 6 Electronics Platform Fluid. © Continental AG Fact Book 2015 | 33

IV. Environmental Responsibility Research in Alternative Raw Materials for Tire Production › Development project in collaboration with the Fraunhofer Institute to cultivate a Russian dandelion variety with latex sap rich in natural rubber. This natural rubber has at least the same quality and performance characteristics as conventional rubber from rubber trees.

› 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

› Joint development project with the Fraunhofer Institute awarded Europe's most important environmental and economic prize in the category "Automobility”.

› Taraxagum brand established for dandelion rubber. Serial production expected within 10 years.

IV. Social Responsibility – Responsible Employer Equal Opportunity

Workforce Diversity The Continental team is made up of people with different backgrounds, cultures, religions, genders and ages. The diversity of different mindsets and points of views, skills and experiences makes us strong. To promote diversity within the company, we focus on two key areas: › A balanced mix of men and women › Internationality

Demographics Program A comprehensive concept designed to address the far- reaching changes as a result of the expected demographic trend focuses on four topics: › Workplace design › Health maintenance for longer employment › Targeted qualification measures › Motivation for a longer working life Award of the Apriori-business solution AG for the Continental “Demography-Management”

52 © Continental AG Fact Book 2015 | 34

IV. Social Responsibility – Social Commitment UERÈ Project in Rio de Janeiro, Brazil

› Since 2012 Continental has committed itself to the UERÈ education project for children and young people aged 4 to 18 from the slum district (known as ‘Favelas’) of Baixa do Sapateiro in Rio de Janeiro. › It is funding an e-learning module to raise the profile of the UERÈ de Mello method and also providing teaching staff and equipment for a children’s football project. › UERÈ founder and principal Yvonne Bezerra de Mello explains the UERÈ de Mello method in her own words: “We tailored our concept quite specifically to the abilities and needs of our children. For example, we almost exclusively offer interactive learning modules with a duration of 20 minutes so that children who suffer from learning blocks as the result of some lasting trauma can also take in the content. We help all UERÈ children to become responsible citizens and our aim is to give them prospects so that they can lead worthwhile lives”. › The Brazilian Government has awarded Bezerra de Mello the “Medaille Tiradentes” in June 2013 for her great achievements with this project.

IV. Social Responsibility Corporate Memberships (1)

› Continental is a participant of the United Nations Global Compact. We have thus committed ourselves to its ten principles in the areas of human rights, labor, environment and anti-corruption.

› The Charter of Diversity recognizes diversity as an opportunity. The signatory companies commit to diversity, fairness and mutual respect. The aim is to create a working environment that is free of prejudice and discrimination.

› The Luxembourg Declaration on Workplace Health Promotion (WHP) promotes health and occupational safety in the companies of the member states of ENWHP1. The declaration encourages members to attach greater importance to WHP.

Source: www.charta-der-vielfalt.de (German Federal Government Commissioner for Migration, Refugees and Integration); www.luxemburger-deklaration.de; www.globalcompact.de. 54 1 European Network for Workplace Health Promotion. © Continental AG Fact Book 2015 | 35

IV. Social Responsibility Corporate Memberships (2)

› The World Business Council for Sustainable Development (WBCSD), founded in 1995, is a frontrunner and catalyst on the path to sustainable development.

› The European Road Safety Charter is an appeal and impetus for all groups in society to make a concrete contribution to improving traffic safety in Europe. The goal is to reduce the number of fatalities on the roads of the European Union (EU) by 2020.

› Continental has endorsed the "Women's Empowerment Principles" since March 2015. The seven principles offer guidance to business on how to empower women in the workplace, marketplace and community.

Source: http://www.wbcsd.org; http://www.erscharter.eu; http://www.weprinciples.org. 55

IV. Social Responsibility Ratings and Indices

› ECPI has been a leading rating and index company dedicated to ESG Research since 1997. Continental is a constituent of the ECPI Ethical EMU Equity1 as one of the Global Equity Indices.

› Since June 2013 Continental has been rated ‘Prime’ by oekom research. Based on the oekom ratings, more than €500 bn is invested by sustainability- oriented investors worldwide.

› The Carbon Disclosure Project (CDP) is a non-profit organization that aims to create more transparency regarding environmentally damaging emissions. Continental has been answering CDP’s extensive questionnaire since 2009. In 2012, we were included in the Carbon Disclosure Leadership Index and in 2015 we achieved 94 out of 100 points.

› Sustainalytics is an independent ESG research and analysis firm supporting investors around the world with the development and implementation of responsible investment strategies. Continental is listed both in STOXX® Global ESG Leaders and STOXX® Europe ESG Leaders. 56 1 150 top capitalized companies in the European Economic and Monetary Union market which are eligible investments. © Continental AG Fact Book 2015 | 36

IV. Social Responsibility Health and Occupational Safety

Our specialist department HISS (“Health, Industrial Hygiene, Safety & Security”) sets protection standards, which apply across the entire Corporation. Standards are the foundation for safety at work, secure production plants and processes, and reflect our responsibility to our employees Hours lost due to accidents2 and to the environment.

800 20 1 729 Absences due to sickness 18 700 638 574 16 3,1 600 3,0 3,0 472 486 498 14 500 12

400 10

8 300 4,6 4,2 6 200 3,6 3,3 3,0 3,1 4

100 Accident rate3 2

0 0 2013 2014 2015 2010 2011 2012 2013 2014 2015

1 Paid and unpaid absences due to sickness in relation to 2 Number of accident-related hours lost worldwide the contractual working hours in percent (for the corporation). per million hours worked. 3 Number of work-related accidents worldwide with one or more days lost per million hours worked.

IV. Corporate Governance Corporate Bodies Annual Shareholders’ Meeting (ASM) Shareholders exercise their voting rights (1 share = 1 vote)

election / ratification reporting taking into account ratification resolutions of ASM Supervisory Board Executive Board

Chairman’s Committee Chairman of the Chairman of the & Mediation Committee Supervisory Board Executive Board

Approval of certain management decisions of material importance to the company Solely responsible for the management Audit Committee of the company 20 members in accordance with the Mitbestim- mungsgesetz (German Co-determination Act): 10 elected by ASM 9 members Nomination Committee 10 elected by employees of Continental AG and its subsidiaries who are employed in Germany

appoints, supervises, advises

reporting

Corporate Governance is the responsibility of the company’s corporate bodies. Continental AG’s Corporate Governance Principles are closely modeled on the recommendations and suggestions of the German Corporate Governance Code.

58 © Continental AG Fact Book 2015 | 37

Topics

V. Continental Corporation Key Consolidated Figures

(in mn €) 2013 2014 2015 Sales 33,331.0 34,505.7 39,232.0

EBITDA 5,095.0 5,133.8 6,001.4 in % of sales 15.3 14.9 15.3 EBIT 3,263.7 3,344.8 4,115.6 in % of sales 9.8 9.7 10,5 EBIT adjusted1 3,865.9 4,455.5 in % of sales1 11.2 11.8

Operating assets (average) 16,804.0 16,726.5 19,680.7 ROCE 19.4 20.0 20.9 R, D & E expenses 1,878.4 2,137.7 2,449.6 in % of sales 5.6 6.2 6.2 Capex2 1,981.1 2,045.4 2,178.8 in % of sales 5.9 5.9 5.6 Depreciation & amortization3 1,831.3 1,789.0 1,885.8 in % of sales 5.5 5.2 4.8 thereof impairment4 126.7 178.9 93.6

1 2 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 3 Capital expenditure on property, plant and equipment, and software. 4 Excluding impairment on financial investments. Impairment also includes necessary reversals of impairment losses. 60 © Continental AG Fact Book 2015 | 38

V. Continental Corporation Sales and Adjusted EBIT1 by Quarter

FY Sales €34,506 mn FY Sales €39,232 mn FY Sales €33,331 mn Adj. EBIT1 €3,866 mn Adj. EBIT1 €4,456 mn 10,030 10,016 9,569 9,618

8,918 8,670 8,541 8,407 8,528 8,350 8,390 1,250 8,033 1,054 1,076 1,076 1,004 955 965 942

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Sales (mn €) Adj. EBIT 1 (mn €)

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

V. Continental Corporation Key Historical Financials and Credit Metrics – IAS 19 (rev. 2011) applied6

(mn €)1 2010 2011 2012 2013 2014 2015 Cash flow statement Adjusted EBITDA2 3,662 4,247 4,822 5,094 5,318 6,094 Reported EBITDA 3,588 4,228 4,967 5,095 5,134 6,001 Net cash interest paid -703 -662 -575 -534 -158 -174 Tax paid -493 -466 -684 -805 -775 -1,015 Change in net working capital3 -497 -556 564 -4 -207 -107 Other 4 -46 -256 -488 -30 175 210 Cash flow arising from operating activities 1,849 2,289 3,785 3,722 4,168 4,916 Cash flow arising from investing activities -1,282 -1,798 -2,132 -1,904 -2,153 -3,472 - thereof capex in PPE and intangibles -1,324 -1,813 -2,081 -2,024 -2,110 -2,265 Cash flow before financing activities 567 491 1,653 1,818 2,015 1,444 Balance sheet Cash and cash equivalents 1,471 1,541 2,397 2,045 3,244 1,622 Derivative instruments and interest-bearing investments 202 249 536 303 364 81 Total indebtedness 8,991 8,562 8,253 6,638 6,432 5,245 Net indebtedness 7,317 6,772 5,320 4,289 2,824 3,542 Credit ratios Net indebtedness / adj. EBITDA2 2.0x 1.6x 1.1x 0.8x 0.5x 0.6x Net cash interest paid coverage (Ratio)5 5.2x 6.4x 8.4x 9.5x 33.7x 35.1x

1 Amounts shown may contain rounding differences. 2 Adjusted EBITDA starting 2010 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 and other investments incl. impairments, gains and losses from disposals, other non-cash items as well as changes in pension and similar obligations and in other assets and liabilities. 5 Adj. EBITDA to net cash interest paid. 6 Since 2012. 62 © Continental AG Fact Book 2015 | 39

V. Continental Corporation Net Indebtedness and Gearing Ratio

Net indebtedness (mn €)

219% Gearing ratio applying IAS 19 (rev. 2011) 190% Gearing ratio

118% 65% 90% 46% 58% 26% 27% 4,289 4,289 2,824 3,542 10,484 8,896 7,317 6,772 5,320

YE YE YE YE YE YE YE YE 2008 2009 2010 2011 2012 2013 2014 2015

V. Continental Corporation Gross Indebtedness by Source

FY 2009 FY 2015 Gross indebtedness: €10,713 mn Gross indebtedness: €5,245 mn (thereof 86% in syndicated loan) (thereof 12%1 in syndicated loan)

Other Revolving indebtness Credit Facility Various other 616 Other bank lines Apr. 2020 indebtedness 298 Term loan 900 Syndicated Syndicated 719 Apr. 2016 loan 350 loan (Tranche B) (Tranche D Aug. 2010 Revolver) 3,500 Aug. 2012 Bond 696 Mar. 2017 Various other (2.5%) bank lines 750 1,078

Bond Bond Aug. 2025 Jul. 2018 (3.9%) (3.0%) 50 750 Syndicated Bond loan Sept. 2020 Bond (Tranche C) (3.125%) Feb. 2019 Aug. 2012 750 (0.5%) 5,000 500

Syndicated loan Bonds Various other bank lines Other indebtedness

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.

64 © Continental AG Fact Book 2015 | 40

V. Continental Corporation Maturities for Syndicated Loan and Bonds1 (€ mn)

As at December 31, 2015

(€ mn) FY 14 FY 15

Gross indebtedness 6,432 5,245

Cash 3,244 1,622

Net indebtedness 2,824 3,542

Available credit lines 4,032 3,612

Total liquidity 7,276 5,233

298

750 750 750 500 350

2016 2017 2018 2019 2020

Syndicated loan2 Bonds

1 All amounts shown are nominal values. 2 Any utilization under the Revolving Credit Facility (RCF) has to be shown as short term debt acc. to IFRS although the RCF matures in 2020. It has a total volume of €3,000 mn.

V. Continental Corporation Purchasing – Production Materials 2015

Natural Rubber Oil Based Purchasing Contracts 4% 1 Chemicals Others4 14% › Continental has a wide range of sources 14% for production materials worldwide.

› A specific strategy for each production material group is set up and the appropriate supplier panel is selected. This way we ensure the competitiveness Total production material and availability of the materials. purchased in 2015: Electronics €17.4 bn 24% › For some materials, like certain oil based chemicals or natural rubber, prices might Mechanical have a long lead time until they become components 3 fully reflected in the cost of our final 25% products.

Electro- mechanical components 2 19%

1 E.g. synthetic rubber, carbon black. 2 E.g. printed circuit boards, connectors, motors. 3 E.g. stamped parts, turn parts, castings. 4 E.g. textiles, plastics. 66 © Continental AG Fact Book 2015 | 41

V. Continental Corporation Raw Material Prices

350% based on January 1, 2008 300%

250%

200%

150%

100%

50%

0% 2008 2009 2010 2011 2012 2013 2014 2015

Natural Rubber TSR 20 Natural Rubber RSS3 Styrene Crude oil Butadiene

Sources: Natural Rubber: Rolling one-month contracts from the Singapore Exchange (U.S. $ cents per kg). Crude oil: Europe Brent Forties Oseberg Ekofisk price from Bloomberg (U.S. $ per barrel). Butadiene, Styrene: South Korea export price (FOB) from PolymerUpdate.com (U.S. $ per metric ton). 67

Topics

68 © Continental AG Fact Book 2015 | 42

VI. Market Data Installation Rates of Electronic Brake Systems Europe North America 100%

80%

60%

40%

20%

Japan China 100%

80%

60%

40%

20%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 ESC ABS/TCS Total EBS 69 Source: Market Data andContinental estimates.

VI. Market Data Installation Rates of Fuel Injection Systems1 Europe North America 100%

80%

60%

40%

20%

Japan China 100%

80%

60%

40%

20%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Gasoline direct injection Gasoline port fuel injection Diesel injection Source: Market Data and Continental estimates. 70 1 Based on production of diesel and gasoline engines for passenger cars & light vehicles. © Continental AG Fact Book 2015 | 43

VI. Market Data Development of Transmissions Technologies1 Europe North America 100%

80%

60%

40%

20%

Japan China 100%

80%

60%

40%

20%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Automated manual transmission Automatic transmission Double clutch transmission Continuous variable transmission Manual transmission Electric variable transmission 71 Source: Market Data and Continental estimates. 1 Based on production of transmissions for passenger cars and light vehicles.

VI. Market Data Installation Rates of Turbochargers in Gasoline Engines

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2013 2014 2015 2016 2017 2018 2019 2020

Europe North/Central America Asia excl. China China 72 Source: IHS 01/2016. © Continental AG Fact Book 2015 | 44

VI. Market Data Installation Rates of Keyless Entry Systems Europe North America 100%

80%

60%

40%

20%

Japan China 100%

80%

60%

40%

20%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

Passive Entry/Start Remote Keyless Entry 73 Source: Strategy Analytics and Continental estimates.

VI. Market Data Installation Rates of Multimedia Systems1 Europe North America 100%

80%

60%

40%

20%

Japan China 100%

80%

60%

40%

20%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Audio Navigation Source: Market Data and Continental estimates. 1 “Audio” refers to stand-alone radios, “Navigation” only to embedded navigation in the car, not connected navigation where e.g. a smartphone 74 delivers navigation calculation and the screen of the car is used as a display. © Continental AG Fact Book 2015 | 45

VI. Market Data Sensors per car of Advanced Driver Assistance Systems1

3,50 Sensors per car

3,00

2,50

2,00

1,50

1,00

0,50

0,00 2013 2014 2015 2016 2017 2018 2019 2020

Europe NAFTA Asia Rest of world Worldwide Source: Market Data and Continental estimates. 1 Market Definition: Average amount of ADAS including sensing rear/surround view cameras but w/o parking assist functions based on ultrasonic sensors. 75 Example: 2015 worldwide – Total number of produced cars: 92.5 mn Average sensors per car: 0.84 92.5 mn*0.84 = 777 mn sensors.

VI. Market Data Rising Volumes of Head-Up Displays (in million units)

2,50

2,00

1,50

1,00

0,50

0,00 2013 2014 2015 2016 2017 2018 2019 2020

Europe North America Japan China 76 Source: Market Data and Continental estimates. © Continental AG Fact Book 2015 | 46

VI. Market Data Production of Passenger Cars and Light Commercial Vehicles (<6t)

(in millions of units) 2013 2014 2015 2016E 1 Europe 19.2 19.9 20.7 21.1 NAFTA 16.2 17.0 17.5 17.5 South America 4.5 3.8 3.0 2.9 2 Asia 44.0 45.8 46.4 47.5 Other markets 0.8 0.9 1.0 1.0

Total 84.7 87.4 88.6 89.9

Source: IHS and Continental estimates. 1 West, Central and East incl. Russia and Turkey. 77 2 Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia.

VI. Market Data Production of Medium and Heavy Commercial Vehicles (>6t)

(in thousand units) 2013 2014 2015 2016E 1 Europe 574 541 569 590 NAFTA 464 546 585 528 South America 246 184 101 98 2 Asia 1,904 1,849 1,575 1,600 Other markets 0000

Total 3,188 3,120 2,830 2,816

Source: IHS and Continental estimates. 1 West, Central and East incl. Russia and Turkey. 78 2 Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia. © Continental AG Fact Book 2015 | 47

VI. Market Data Replacement Tires – Passenger Cars and Light Commercial Vehicles (<6t)

(in millions of units) 2013 2014 2015 2016E Europe 313 324 324 329 NAFTA 264 276 278 283 South America 63 64 64 62 Asia 376 387 415 436 Other markets 39 41 42 41

Total 1,055 1,102 1,123 1,151

Source: LMC World Tyre Forecast Service and Continental estimates. 79

VI. Market Data Replacement Tires – Medium and Heavy Commercial Vehicles (>6t)

(in millions of units) 2013 2014 2015 2016E Europe 22.7 23.5 23.5 24.2 NAFTA 20.0 22.0 22.8 23.2 South America 13.7 14.0 13.2 12.7 Asia 83.4 84.8 85.0 87.0 Other markets 6.3 6.9 7.3 7.3

Total 146.2 151.4 151.8 154.4

Source: LMC World Tyre Forecast Service and Continental estimates. 80 © Continental AG Fact Book 2015 | 48

Topics

VII. Automotive Group Key Figures

(in € millions) 2013 2014 2015 Sales 20,016.1 20,909.2 23,574.5

EBITDA 2,490.5 2,407.7 2,973.2 in % of sales 12.4 11.5 12.6 EBIT 1,158.9 1,189.3 2,014.4 in % of sales 5.8 5.7 8.5 EBIT adjusted1 1,679.3 2,066.1 in % of sales1 8.0 8.8

Operating assets (average) 10,958.9 10,504.0 11,237.5 ROCE 10.6 11.3 17.9 R, D & E expenses 1,589.1 1,835.5 2,097.2 in % of sales 7.9 8.8 8.9 Capex2 1,015.5 1,125.7 1,274.7 in % of sales 5.1 5.4 5.4 Depreciation & amortization3 1,331.6 1,218.4 958.8 in % of sales 6.7 5.8 4.1 thereof impairment4 127.8 178.9 0.7

VII. Automotive Group Sales and Adjusted EBIT1 by Division

Automotive Group Sales (mn €) FY 2015 Automotive Group Adj. EBIT1 (mn €) FY 2015

8,155 23,575 824 2,066 8.3% - 99 4.8% 7,069 10.2% 0 8.8% 425 0.3% 8,450 817 6.1% 9.7% 5.1% 1 Organic sales growth (%) Adj. EBIT margin (%)

Chassis Powertrain Interior cons. Automotive Chassis Powertrain Interior cons. Automotive & Safety Group & Safety Group

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

VII. Automotive Group Sales by Market

Other countries Other countries 4% 1%

Germany Germany Asia Asia 29% 24% 26% 21%

Sales in 2010: €15.9 bn Sales in 2015: €23.6 bn

NAFTA 20% NAFTA 26% Europe Europe (excluding (excluding Germany) Germany) 26% 23%

84 © Continental AG Fact Book 2015 | 50

VII. Automotive Group Order Intake (LTS1) in the Automotive Group €30 bn in 2015

Chassis & Safety Powertrain Interior order intake (bn €) order intake (bn €) order intake (bn €)

› ADAS book-to-bill ratio at 2.4x › Business unit HEV acquired › Solid order backlog with book- › VED book-to-bill at 1.4x on >€1 bn in life-time sales to-bill running at 1.3x in Body new MC100 and MC 1 › Engine Systems (ES) order & Security (BS) and intake impacted in H2 2015 Instrumentation and Driver › More than 40% of the order HMI (ID) intake was acquired outside by market environment of Europe and NAFTA › More than 45% of order › First order acquired in ITS intake was acquired outside › >25% of order intake was of Europe and NAFTA acquired in Asia 11.1 11.2 9.9 9.4 9.7 9.2 9.6 1.7 7.9 8.3 1.5 1.3 1.3 1.3 1.4 1.2 1.1 1.2

2013 2014 2015 2013 2014 2015 2013 2014 2015

LTS (bn €) Book-to-bill LTS (bn €) Book-to-bill LTS (bn €) Book-to-bill

1 Life-time sales.

VII. Automotive Group Production of Passenger Cars and Light Trucks (<6t)

› Worldwide PC< production showed a Worldwide PC & LT1 CAGR 2008-2015 of 4%. It is forecasted production (mn units) by IHS to stay at 3% 2015-2020E 103 › European market not expected to reach CAGR 3% 5% pre-crisis level (2007: 22 mn) before 89 2018; CAGR to accelerate to 2% CAGR 5% 26% (2015-2020E) 4% 68 26% › China is the largest market for PC< 7% vehicles produced. CAGR to slow to 5% 29% 31% 26% from 2015-2020E from 15% during 2008-2015 according to IHS 13% 18% 19% 20% › NAFTA expected to reach up to 19 mn units by 2020E 30% 23% 22%

2008 2015 2020E Europe 2 NAFTA China Rest of Asia 3 Rest of World

1 Passenger car & light truck (<6t); Source: IHS February 2016. 2 West, Central and East incl. Russia and Turkey. 3 Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia. 86 © Continental AG Fact Book 2015 | 51

VII. Automotive Group Opportunities and Challenges in the Medium Term

Digitalization Electric Mobility Shared Mobility

Conti’s view/position: Conti’s view/position: Conti’s view/position:

› Market for automated driving1 is › FEV2 sales to account for 2% of › VCP3 to decrease but more forecasted to exceed €25 bn by global car production by 2025 intense use will lead to a greater 2020 VCP3 turn › Costs for battery will › 60% of our Automotive sales in predominantly drive demand for › Shared mobility therefore should 2015 are derived from sensors, FEV2 not lead to a decrease in miles electronics or software products travelled individually › Conti so far invested more than › Vision Zero accidents achievable €1 bn in electric mobility › According to our own survey4, the vast majority of people still wants to own a car

All medium-term mobility scenarios still foresee tires on vehicles

1 Goldman Sachs Report, Cars 2025: Vol. 3 (Sept 2015). 2 FEV = Full Electric Vehicle. 3 VCP = Vehicle Car Park. 4 Continental Mobility Study 2015. 87

VII. Automotive Group Growth Opportunities – Electronic Stability Control (ESC)

2008 2015 2020E

64% 75% 35% 25% PC< PC< PC< 68 mn 36% 89 mn 103 mn 65% production production production worldwide worldwide worldwide

Installation rate ESC Market potential ESC Installation rates › NAFTA with close to 100% 12%1%87%55%96% penetration since 2014

› ESC systems mandatory in Europe from 11/2014 onwards1

88% 99% 13% 45% 4% › Largest volume potential in Asia; installation rate currently only at 45% Asia Other South Europe NAFTA Markets America

Source: IHS and own estimates. 1 Regulation (EC) No. 661/2009; refers to all vehicles of category M and N. 88 © Continental AG Fact Book 2015 | 52

VII. Automotive Group Growth Opportunities – Advanced Driver Assistance Systems (ADAS)

2008 2015 2020E

1% 10% 30% PC< PC< PC< 68 mn 89mn 103 mn production production 70% production worldwide worldwide 99% 90% worldwide

Installation rate ADAS Market potential ADAS Installation rates › Installation rate in Europe expected to go up to 86% by 72% 87% 98% 93% 98% 2020

› NAFTA follows at slower pace, hitting 27% by 2020 28% 13% 2% 7% 2% › Installation rates in Asia are estimated to grow to 15% by

Asia 2020, mainly driven by Japan Other South Europe NAFTA Markets America

Source: IHS, Strategy Analytics and own estimates; ADAS w/o parking assist functions.

VII. Automotive Group Growth Opportunities – Vehicle-to-X

Vehicle-to-X technology enhances vehicle safety

V2X OneBox from Conti Additional safety features › Enables ad-hoc communication › Left-turn assist NHTSA decision on introduction (real-time direct) without a fixed › Electronic brake light assist network infrastructure1 of V2X technology is expected › Roadworks assist within the next two years › Easy to integrate in existing vehicle architecture

1 i.e. no mobile phone network, no mobile network operator.

90 © Continental AG Fact Book 2015 | 53

VII. Automotive Group Growth Opportunities – Sensors and Actuators

Key Products Sales by Markets (2015) Market growth (bn €)

~ 11.7 Electronic Throttle Body 21% ~ 8.5 CAGR 5% 50% 42% NOx Sensor 58% CAGR 7% 29% Knock 2015 2020 Sensor Europe NAFTA Asia Sensors Actuators

Flex Fuel › Market for Sensors & Actuators (S&A) shows significant growth Sensor › Continental wants to outgrow the market to remain a strong player › Obtain top 3 position in relevant markets Exhaust Gas › New technologies in development for future demands Recirculation Valve

Source: Market Data and own estimates. 91

VII. Automotive Group Growth Opportunities – Selective Catalytic Reduction

Key Products 2015 2020E 21%

SCR Catalyst PC< PC< Diesel Engine Diesel Engine 52% 17 mn 48% 19 mn production production SCR Dosing 79% ww ww Control Unit Installation rate NOx Market potential NOx Tank Extraction Unit Installation rates › Exhaust aftertreatment is increasingly becoming a key technology 67% 4% 100% 98% 100% Liquid-Cooled › Almost all new vehicles SCR Injector engines (Gasoline & Diesel) must have SCR technology to 33% 96% 0% 2% 0% comply with the NOx limits › Acquisition of Emitec Deka Air Cooled complemented the exhaust gas SCR Injector Asia Other Other NAFTA Europe South aftertreatment technology Markets America portfolio

Source: Market Data and own estimates. 92 © Continental AG Fact Book 2015 | 54

VII. Automotive Group Growth Opportunities – Gasoline Direct Injection (GDI)

2008 2015 2020E 4% 29% 44% 56% Gasoline Gasoline Gasoline engine engine engine 51 mn 71% 70 mn 80 mn production production production 96% ww ww ww Installation rate GDI Market potential GDI Installation rates › Stricter CO2 emission targets in Europe, USA, Japan and China cause huge demand 36% 65% 100% 81% 83% increase for gasoline direct injection

› GDI volume expected to grow 64% 35% 0% 19% 17% by 120% until 2020 Asia Other Other South South NAFTA Europe Markets America

Source: IHS. 93

VII. Automotive Group Growth Opportunities – Gasoline Turbo Chargers (TC)

2008 2015 2020E 4% 22% Gasoline Gasoline Gasoline 44% engine engine 56% engine 51 mn 70 mn 80 mn production 78% production production 96% ww ww ww Installation rate TC Market potential TC Installation rates › Market for Gasoline Turbo Chargers will grow from 15 mn in 2015 to more than 36 mn in 38% 89% 100% 84% 98% 2020

› World's first Turbo Charger with Aluminum Turbine Housing in Cars (Water-Cooled) 62% 11% 0% 16% 2% › Significant weight reduction by nearly 30% while

Asia simultaneously providing cost Other Other South South NAFTA Europe and system benefits Markets America

Source: IHS. 94 © Continental AG Fact Book 2015 | 55

VII. Automotive Group Growth Opportunities – 48V Technology

2015 2020E 2025E

0% 48% EV/HEV EV/HEV 37% EV/HEV 52% engine engine engine 3 mn 63% 11 mn production 26 mn 100% ww production production ww ww Installation rate 48V Market potential 48V

› Lower CO2 emissions and less fuel consumption up 20%1 under real driving condition › Due to advanced Start-Stop, recuperation and coasting/sailing functions › First SOP 2016/2017

1 TV magazine “auto mobil” broadcasted on VOX on November 16, 2014 at 5 PM. 95

VII. Automotive Group Growth Opportunities – Tire Information Systems (TIS)

2008 2015 2020E

45% 29% 40% PC< PC< PC< 68 mn 89 mn 103 mn production production production worldwide worldwide worldwide 71% 60% 55% Installation rate Market potential Installation rate 1 › Mandatory in NAFTA since ’07 2 and in Europe since ’14 40% 15% 88% 77% 82% › Europe at 60% penetration in 2015

› Substantial growth potential in 60% 85% 12% 23% 18% South America and Asia

› By 2020 around 55% still not Asia equipped with TIS Other South Europe NAFTA Markets America

Source: Strategy Analytics, IHS and own estimates. 1 Mandatory as of Sept. 2008 for all new light vehicles. 2 Mandatory as of Nov. 2014 for all new passenger cars. 96 © Continental AG Fact Book 2015 | 56

VII. Automotive Group Growth Opportunities – Driver HMI Displays

2008 2015 2020E

26% 32% PC< PC< PC< 45% 68 mn 89 mn 55% 103 mn production 68% production production 74% worldwide worldwide worldwide

Installation Rate Displays 1 Market Potential Displays1 Installation rate › Legislation will boost sales further 52% 51% 79% 80% 73% › Head-Up Displays with smallest overall share, but 3D- navigation will boost installation rates 48% 49% 21% 20% 27% › Clear trend towards larger and increasing number of displays Asia per vehicle2 Other Other South South NAFTA Europe Markets America

Source: IHS and own estimates. 1 Driver HMI Displays include Head Up Displays, Secondary Displays and Integrated Center Stacks, excludes Multimedia Displays. 2 Market potential understated as up to five displays are feasible per vehicle. 97

VII. Automotive Group Growth Opportunities – Road Database

Road Database, an important step towards highly/fully automated driving

Important for Built-in sensors in numerous The backend continuously › ADAS functions vehicles deliver generates highly accurate real-time road data road map data › Dynamic eHorizon › Highly/fully automated driving

98 © Continental AG Fact Book 2015 | 57

VII. Automotive Group Growth Opportunities – Mirror Replacement

Mirror Replacement: unobstructed view without physical contortions

Information & safety Lower fuel consumption and enhancement improved interior acoustics EU decision expected for 1 › No blind spots › Lower cd value 2016, start of production › Better visibility › Less wind flow noise targeted for 2018 › Connection to ADAS functions

1 Air drag coefficient.

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group – Chassis & Safety Division 101 VIII. Rubber Group 131 IX. Share and Bond Information 161 X. Glossary 170

100 © Continental AG Fact Book 2015 | 58

VII. Chassis & Safety Business Units and Key Products

Hydraulic Passive Safety Advanced Driver Vehicle Dynamics Brake Systems & Sensorics Assistance Systems › Electronic Brake Systems › Calipers › Integrated vehicle safety › Functions development, safety testing & › Passenger Cars / › Drum brakes validation › Adaptive cruise control Motorcycles › Emergency brake assist › Airbag control units / safety › ABS / ESC / OCB › Brake hoses (domain) control units › Lane departure warning › Lane change support › Software functions › Boosters › Crash sensors › Blind spot detection › Traction control › Tandem master cylinders › Inertial measurement units › Traffic sign assist › Adaptive cruise control › Intelligent head lamp › Regenerative brake system › Electric parking brakes › Chassis and driver intention control › Active front steering sensors › Rear cross traffic alert › Pedal modules › Hill start assist › Battery and energy › Surround View › Hydraulic brake assist Brake pressure regulators monitoring sensors › › Sensors › Trailer stability assist › Electronic components › Washer systems › Radar › Chassis electronics (1st tier customer) › Camera › Wheel, engine and Suspension systems › Lidar › transmission speed sensors › Accelerator Force Feedback Pedal (AFFP®) › V2X systems

101

VII. Chassis & Safety Locations Worldwide 67 sites for production and R&D in 20 countries. Divisional headquarter in Frankfurt/Main, Germany.

Europe Belgium France Portugal Sweden Germany China ▐ Mechelen ▐ Boussens ▐ Palmela ▐ Arvidsjaur ▐ Alzenau ▐ Lindau ▐ Shanghai ▐ Jiading SABS ▐ ▐ ▐ Jiading TC Czech Republic Toulouse Romania UK Bebra ▐ Nuremberg ▐ Chongqing ▐ ▐ Jiading CASS ▐ Adrspach Hungary ▐ Iasi ▐ Ebbw Vale Frankfurt ▐ Regensburg ▐ ▐ Changchun I ▐ Frenstat ▐ Budapest ▐ Sibiu ▐ Lewes Gifhorn ▐ Rheinböllen ▐ ▐ Changchun II ▐ Jicin ▐ Veszprém ▐ Timişoara ▐ Birmingham Hanover ▐ Schwalbach Italy ▐ Ingolstadt ▐ Ulm ▐ Changshu Slovakia ▐ Karben ▐ Heihe ▐ Cairo Montenotte ▐ Zvolen ▐ Korbach ▐ Lian Yun Gang USA ▐ Auburn Hills ▐ Brimley ▐ Culpeper South Korea ▐ Henderson ▐ Sejong ▐ Morganton ▐ Icheon ▐ Seguin ▐ Pangyo Japan ▐ Asahi Mexico ▐ Hamakita ▐ Monbetsu ▐ Ayala Morelos (Cuautla) ▐ Yokohama ▐ Guadalajara India ▐ Las Colinas ▐ Bangalore ▐ Silao ▐ Gurgaon Malaysia (New Delhi) Philippines ▐ Penang ▐ ▐ Manesar Calamba Brazil ▐ Manila ▐ Salto ▐ Varzea Paulista

▐ Production/R&D ▐ Joint Ventures ≤ 50% 102 © Continental AG Fact Book 2015 | 59

VII. Chassis & Safety Key Figures

(in € millions) 2013 2014 2015 Sales 7,269.2 7,514.9 8,449.7

EBITDA 990.2 1,018.1 1,160.3 in % of sales 13.6 13.5 13.7 EBIT 598.9 680.2 814.3 in % of sales 8.2 9.1 9.6 EBIT adjusted1 710.4 817.2 in % of sales1 9.5 9.7

Operating assets (average) 4,032.6 3,956.5 4,277.7 ROCE 14.9 17.2 19.0 R, D & E expenses 535.3 629.5 691.2 in % of sales 7.4 8.4 8.2 Capex2 401.7 411.6 470.3 in % of sales 5.5 5.5 5.6 Depreciation & amortization3 391.3 337.9 346.0 in % of sales 5.4 4.5 4.1 thereof impairment4 41.4 4.7 -0.1

1 2 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 3 Capital expenditure on property, plant and equipment and software. 4 Excluding impairment on financial investments. Impairment also includes necessary reversals of impairment losses. 103

VII. Chassis & Safety Sales by Market

Other countries 4% Other countries 1%

Germany Asia 30% 30% Asia 23% Germany 24%

Sales in 2010: €5.8 bn Sales in 2015: €8.4 bn

NAFTA 19% Europe Europe NAFTA (excluding 25% (excluding Germany) Germany) 20% 24%

104 © Continental AG Fact Book 2015 | 60

VII. Chassis & Safety Market Position for Electronic Brake Systems 2015

Continental Europe All others Bosch TRW

Continental North America All others Bosch TRW

Continental South America All others Bosch TRW

Continental Asia/Pacific All others Advics Bosch

Continental World All others Advics Bosch

Source: Continental estimates. Market share of all suppliers other than top 3 105

VII. Chassis & Safety Market Position for Foundation Brake Systems 2015

Continental Europe All others CBI TRW

Continental North America All others Akebono TRW

Continental South America All others CBI TRW

Continental Asia/Pacific All others Advics TRW

Continental World All others Advics TRW

Source: Continental estimates. Market share of all suppliers other than top 3 106 © Continental AG Fact Book 2015 | 61

VII. Chassis & Safety Market Position for Actuation 2015

Continental Europe All others Bosch TRW

Continental North America All others Bosch TRW

Continental South America All others Bosch TRW

Continental Asia/Pacific All others Advics Bosch

Continental World All others Bosch TRW

Source: Continental estimates. Market share of all suppliers other than top 3 107

VII. Chassis & Safety Market Position for Airbag Electronics 2015

Continental Europe All others Autoliv Bosch

Continental North America All others Autoliv Bosch

Continental South America All others Autoliv TRW

Continental Asia/Pacific All others Autoliv Denso

Continental World All others Autoliv Bosch

Source: Continental estimates. Market share of all suppliers other than top 3 108 © Continental AG Fact Book 2015 | 62

VII. Chassis & Safety Market Position for Advanced Driver Assistance Systems 2015

Continental Europe All others Autoliv Bosch

Continental North America All others Autoliv Magna

Continental Asia/Pacific All others Denso Valeo

Continental World All others Bosch Valeo

Market share of all suppliers other than top 3

Source: Continental estimates. 109

VII. Chassis & Safety Growing Sales Volume for Electronic Brake Systems

(in mn units, excluding motorcycles) ABS/TCS ESC 30

0 2006 2008 2010 2012 2014 2016 2018 2020 Model Selection Europe NAFTA Asia › Audi A3 › BMW X3 / X4 / X5 › Ford Edge / Focus / Kuga / Mondeo › Subaru Legacy / Impreza / Levorg › BMW 1 Series / 2-Series / 3 Series / X1/ i3 › Chevrolet Equinox / Colorado / Terrain › Greatwall CH051 SUV › Suzuki Spacia / Swift / Hustler › Ford Focus / Mondeo / Kuga / Fiesta / Transit › Chrysler 300 / JEEP Wrangler / Dodge RAN › GM Buick Envision › Toyota Mark X › Mercedes C Class 1500 › Honda Civic › VW Lavida / Bora / Passat / › Fiat Doblo / Giulietta / Alfa E-Class › Ford Explorer / Escape / Focus / Fusion / › Hyundai i 10 / Velostar / Kia Morning / Touran / Magotan / Tiguan / › Opel Astra / Zafira / Vivaro Edge K3 / Ray Lamando › Peugeot 208 / 2008 / C3 Picasso / Cactus › Honda Odyssey / Civic / Accord / Pilot / › Mazda Axela / Demio / Premacy / CX-5 Ridgeline › Renault Scenic / Espace /Fluence / Talisman › Mitsubishi Lancer / Outlander / RVR › Hyundai Kia Forte › Nissan Note / Navara / Andrew › Nissan Note / Sylphy / Navara › Mazda Axekla / Demio › Skoda Octavia / Yeti › Proton Iriz / Saga › Subaru Legacy / Outback › Toyota Yaris › PSA 208 / 2008 / C-Elysee › VW Jetta / New Beetle / Golf / New Passa › Volvo S60 / V40 / V60 / V90 / XC60 / XC90 › Skoda Octavia / Superb › VW Golf / Passat 110 Source: Continental estimates. © Continental AG Fact Book 2015 | 63

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group – Powertrain Division 112 VIII. Rubber Group 131 IX. Share and Bond Information 161 X. Glossary 170

111

VII. Powertrain Business Units and Key Products

Hybrid Electric Sensors & Fuel & Exhaust Engine Systems Transmission Vehicle Actuators Management

› Engine Management › Control units for › Power electronics › Actuators for › Fuel delivery modules Systems and fuel components for › Automatic › Electric motors › Electric pumps › Fuel level sensors transmission › Electric throttle & air › Diesel Piezo Common › Double clutch › Battery management control › Fuel pumps Rail Injection System transmission systems › Exhaust & emission › Gasoline Solenoid › Automated manual › General purpose › Electronics for fuel › Energy management Direct Injection transmission pump control › Exhaust & emission › Continuously › Gasoline Port › Power net systems sensors for › Fluid level sensor with variable Injection sealed contact system transmission › Exhaust gas › Liquefied Petroleum › Fluids: Oil level, fuel, › Catalysts and filters › Control units for 4x4 Gas (LPG) and UREA and AWD applications › Tank-integrated Compressed Natural › Temperature UREA dosing system Gas (CNG) › Transfer cases › Engine & trans- › Differentials › Exhaust mission sensors › Limited slip coupling Aftertreatment › Axle disconnect › Airflow › Engine Management › Combustion Systems and exhaust › Position after-treatment pro- › Pressure ducts for commercial vehicle applications › Door handle sensors › Turbochargers for gasoline engines

112 © Continental AG Fact Book 2015 | 64

VII. Powertrain Locations Worldwide 54 sites for production and R&D in 19 countries. Divisional headquarters in Regensburg, Germany.

Europe Czech Republic France Romania Germany ▐ Brandys ▐ Boussens ▐ Brasov ▐ Bebra/Mühlhausen ▐ Limbach-Oberfrohna ▐ Frenstat ▐ Faulquemont ▐ Iasi ▐ Berlin ▐ Lohmar ▐ Trutnov ▐ Foix ▐ Sibiu ▐ Dortmund ▐ Nuremberg ▐ Ostrava ▐ Toulouse ▐ Timişoara ▐ Eisenach ▐ Regensburg Russia Hungary ▐ Gifhorn ▐ Roding ▐ Kaluga ▐ Budapest ▐ Grünstadt ▐ Schwalbach China Italy ▐ Karben ▐ Changchun ▐ Pisa ▐ Shanghai Canada ▐ Tianjin ▐ Chatham ▐ Wuhu

USA South Korea ▐ Auburn Hills ▐ Icheon ▐ Dearborn ▐ Sejong ▐ Deer Park ▐ Fountain Inn ▐ Newport News Japan ▐ Seguin ▐ Yokohama

Mexico ▐ Ayala Morelos (Cuautla) India Philippines ▐ Guadalajara ▐ Bangalore ▐ Calamba ▐ Juarez ▐ Manesar ▐ Pune Malaysia ▐ Penang Brazil ▐ Guarulhos ▐ Salto Thailand ▐ Amata City Australia ▐ Bundoora

113

VII. Powertrain Key Figures

(in € millions) 2013 2014 2015 Sales 6,260.3 6,494.3 7,068.5

EBITDA 650.2 443.3 730.7 in % of sales 10.4 6.8 10.3 EBIT 179.5 -96.8 395.6 in % of sales 2.9 -1.5 5.6 EBIT adjusted1 260.5 424.6 in % of sales1 4.0 6.1

Operating assets (average) 2,936.9 2,733.0 2,767.8 ROCE 6.1 -3.5 14.3 R, D & E expenses 561.8 635.1 708.7 in % of sales 9.0 9.8 10.0 Capex2 360.5 428.0 468.4 in % of sales 5.8 6.6 6.6 Depreciation & amortization3 470.7 540.1 335.1 in % of sales 7.5 8.3 4.7 thereof impairment4 38.9 168.4 0.5

VII. Powertrain Sales by Market

Other countries 1% Other countries 1% Germany Germany Asia Asia 26% 22% 25% 22%

Sales in 2010: €4.7 bn Sales in 2015: €7.1 bn

NAFTA 20%

Europe NAFTA 25% Europe (excluding (excluding Germany) Germany) 27% 31%

115

VII. Powertrain Market Position for Diesel Injection Systems1 2015

Continental Europe All others Bosch Delphi

Bosch Asia/Pacific Continental Delphi All others Denso

Bosch Continental World Delphi All others Denso

Source: Continental estimates. 116 1 For passenger cars & light trucks. Market share of all suppliers other than top 3 © Continental AG Fact Book 2015 | 66

VII. Powertrain Market Position for Gasoline Injection Systems1 2015

Continental Europe All others Bosch Hitachi

Continental North America All others Bosch Denso

Bosch South America Continental Delphi All others Magneti Marelli

Continental Asia/Pacific All others Bosch Denso

Continental World All others Bosch Denso

Source: Continental estimates. 117 1 For passenger cars & light trucks. Market share of all suppliers other than top 3

VII. Powertrain Market Position for Transmission Control Units1 2015

Continental Europe All others Bosch ZF Electronics

Continental North America All others Bosch Hitachi

Continental Asia/Pacific All others Aisin Denso

Continental World All others Bosch Denso

Market share of all suppliers other than top 3

Source: Continental estimates. 118 1 For passenger cars & light trucks. © Continental AG Fact Book 2015 | 67

VII. Powertrain Opportunities and Challenges

Gasoline-related Diesel-related HEV-related FEV-related business business business business

100%1 160% 160-260% 300%

› Engine management › Engine management › Engine management › High voltage axle drive systems for solenoid systems for diesel piezo systems (gasoline/diesel) direct injection (injector, common rail injection › Power electronics › Exhaust aftertreatment ECU, pressure pumps) (Injector, ECUs, › Battery management pressure pumps) › Exhaust aftertreatment › Sensors and actuators systems › Exhaust aftertreatment › Sensors and actuators › Turbochargers › Inverters and DC/DC › Sensors and actuators and converters › Turbochargers › 48V solutions › Electric water pumps or › Plug-in hybrid solutions

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. 119

VII. Powertrain Shared Mobility – Overrated?

1 Continental Mobility Study 2015. Respondents agreeing with statement.

120 © Continental AG Fact Book 2015 | 68

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group – Interior Division 122 VIII. Rubber Group 131 IX. Share and Bond Information 161 X. Glossary 170

121

VII. Interior Business Units and Key Products

Instrumentation & Infotainment & Intelligent Body & Security Commercial Driver HMI Connectivity Transportation Vehicles & Systems Aftermarket › Instrument clusters › Radios › Commercial fleet › Body control modules › Tachographs, telematics operations & logistics and services › Display solutions › Multimedia systems › Access control systems › Emergency › Visual and haptic management human-machine › Head-up displays › Connectivity & › Door control units telematics solutions › Maintenance interface Seat comfort systems › Control panels › Software & management › › Chassis, body, and connected solutions › Advanced public transmission electronics › Central input devices › Power closures transportation systems › Wear parts, spare parts, › Interior cameras › Advanced traveler › Tire information systems tools, services, and information systems multi-brand vehicle Gateways › Cockpit modules › diagnostics for the Advanced traffic › independent aftermarket, management systems › Energy management as well as diagnostics and services for vehicle › Safety › LED light control units manufacturers › Intelligent antenna › Traffic payment › Original equipment modules services › Smart device integration

122 © Continental AG Fact Book 2015 | 69

VII. Interior Locations Worldwide

66 sites for production and R&D in 23 countries. Divisional headquarters in Regensburg, Germany.

Europe Austria France Romania Sweden Germany ▐ Vienna ▐ Boussens ▐ Iasi ▐ Arvidsjaur ▐ Babenhausen ▐ Markdorf China ▐ Foix ▐ Sibiu ▐ ▐ Czech Rep. UK Bebra Nuremberg ▐ Changchun ▐ Rambouillet ▐ Timişoara ▐ Dortmund ▐ ▐ Brandŷs ▐ Birmingham Regensburg Russia ▐ Jinan ▐ Toulouse Spain ▐ Ingolstadt ▐ ▐ Frenštát ▐ Bridgewater Schwalbach am Taunus ▐ Chistopol ▐ Nanjing ▐ Rubi ▐ Karben ▐ ▐ Adršpach Hungary ▐ Coventry Villingen-Schwenningen ▐ Shanghai ▐ Budapest Switzerland ▐ Devizes ▐ Karlsruhe ▐ Wetzlar ▐ Tianjin ▐ Rüthi ▐ Wuhu USA ▐ Auburn Hills ▐ Deer Park ▐ Newport News South Korea ▐ Seguin ▐ Gyeonggi-do ▐ Troy ▐ Icheon-city ▐ Santa Clara ▐ Sejong-si Japan Mexico ▐ Yokohama ▐ Cuautla ▐ Aichi / Nagoya ▐ Guadalajara Philippines ▐ Nogales India ▐ Manila ▐ Tlaquepaque ▐ Bangalore ▐ Manesar Singapore Malaysia ▐ Singapore Brazil ▐ Penang ▐ Gravatai ▐ Resende ▐ Guarulho ▐ São Bernardo ▐ Salto do Compo Thailand Australia ▐ Bangkok ▐ Bundoora ▐ Campbellfield

123

VII. Interior Key Figures

(in mn €) 2013 2014 2015 Sales 6,605.7 7,002.5 8,154.8

EBITDA 850.2 946.3 1,082.2 in % of sales 12.9 13.5 13.3 EBIT 380.6 605.9 804.5 in % of sales 5.8 8.7 9.9 EBIT adjusted1 708.4 824.3 in % of sales1 10.1 10.2

Operating assets (average) 3,989.4 3,814.5 4,192.0 ROCE 9.5 15.9 19.2 R, D & E expenses 492.0 570.9 697.3 in % of sales 7.4 8.2 8.6 Capex2 253.3 286.1 336.0 in % of sales 3.8 4.1 4.1 Depreciation & amortization3 469.6 340.4 277.7 in % of sales 7.1 4.9 3.4 thereof impairment4 47.5 5.8 0.3

VII. Interior Sales by Market

Other countries Other countries 8% 3%

Germany Asia 31% 23% Asia Germany 18% 25%

Sales in 2010: €5.5 bn Sales in 2015: €8.2 bn

NAFTA 19% NAFTA Europe Europe 27% (excluding (excluding Germany) Germany) 24% 22%

125

VII. Interior Market Position for Body & Security 2015

Continental Europe All others Hella Lear

Continental North America All others Denso Lear

Continental South America All others Bosch Delphi

Continental Asia/Pacific All others Denso Sumitomo

Continental World All others Denso Hella

VII. Interior Market Position for Instrumentation & Driver HMI1 2015

Continental Europe All others Bosch Visteon

Continental North America All others Denso Visteon

Continental South America All others Denso Visteon

Continental Asia/Pacific All others Denso Nippon Seiki

Continental World All others Denso Visteon

Source: Continental estimates. Market share of all suppliers other than top 3 127 1 Excluding cockpit modules.

VII. Interior Market Position for Infotainment & Connectivity 2015

Continental Europe All others Bosch Harman

Continental North America All others Harman Panasonic

Continental South America All others Bosch Panasonic

Continental Clarion Asia/Pacific All others Mobis Panasonic

Bosch Continental Harman World All others Panasonic

VII. Interior Market Position for Commercial Vehicle1 2015

Continental Europe All others Stoneridge Wabco

Continental North America All others Phoenix Stoneridge

Continental South America All others Bosch Wabco

Continental Asia/Pacific All others DETC Yazaki

Continental World All others Stoneridge Yazaki

Market share of all suppliers other than top 3 Source: Continental estimates. 129 1 Market shares for commercial vehicle business as described in BU structure excluding automotive aftermarket.

Topics

VIII. Rubber Group Key Figures

(in mn €) 2013 2014 2015 Sales 13,355.5 13,637.6 15,704.6

EBITDA 2,714.0 2,832.6 3,181.5 in % of sales 20.3 20.8 20.3 EBIT 2,214.8 2,262.7 2,255.8 in % of sales 16.6 16.6 14.4 EBIT adjusted1 2,293.8 2,544.0 in % of sales1 16.8 17.6

Operating assets (average) 5,913.3 6,339.2 8,556.6 ROCE 37.5 35.7 26.4 R, D & E expenses 289.3 302.2 352.4 in % of sales 2.2 2.2 2.2 Capex2 964.6 914.9 903.4 in % of sales 7.2 6.7 5.8 Depreciation & amortization3 499.2 569.9 925.7 in % of sales 3.7 4.2 5.9 thereof impairment4 -1.1 — 92.9

1 2 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 3 Capital expenditure on property, plant and equipment and software. 4 Excluding impairment on financial investments. Impairment also includes necessary reversals of impairment losses. 131

VIII. Rubber Group Sales and Adjusted EBIT1 by Division

Rubber Group Sales (mn €) FY 2015 Rubber Group Adj. EBIT1 (mn €) FY 2015

10,409 15,705 2,109 2,544 1.0% - 72 1.9% 20.4% 0 17.6%

5,368 3.9% 435 Organic sales growth (%) 1 10.4% Adj. EBIT margin (%)

ContiTech Tires cons. Rubber Group ContiTech Tires cons. Rubber Group

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

VIII. Rubber Group Sales by Market

Other countries Other countries 7% Asia 7% 12% Asia Germany 8% 25%

Germany 18%

NAFTA NAFTA 17% Sales in 2010: €10.2 bn Sales in 2015: €15.7 bn 27%

Europe (excluding Europe Germany) 43% (excluding Germany) 36%

133

VIII. Rubber Group Growth Opportunities – Replacement Tires Demand for PC< Tires

› Global replacement tire market to PC<2 Replacement grow with a CAGR of 4% from Tires (bn units) 2015 to 2020E1

› Europe to stay the largest 1,36 CAGR replacement tire market by 4% 10% volume; CAGR to accelerate to 1,12 CAGR 3% from 2015 to 2020E 3% 9% 23% 0,91 › China expected to show a CAGR 9% 24% 18% of 10-11% from 2015 to 2020E 22% 13% 8% 22% 29% 25%

32% 29% 27%

2008 2015 2020E Europe NAFTA China Rest of Asia Rest of World

1 According to LMC. 2 Passenger and light truck replacement tire market source: LMC (December 2015). 134 © Continental AG Fact Book 2015 | 75

VIII. Rubber Group Growth Opportunities – Improving Tire Mix due to rising SUV & Pick-Up Share

PC & LT1 Production Europe PC & LT1 Production NAFTA Share of SUVs and Pickup Trucks Share of SUVs and Pickup Trucks

53% 46% 49% 53% 28% 22% 12% 4%

2005 2010 2015 2020E 2005 2010 2015 2020E PC & LT1 Production China PC & LT1 Production Worldwide Share of SUVs and Pickup Trucks Share of SUVs and Pickup Trucks

32% 32% 34% 28% 21% 21% 11% 6%

2005 2010 2015 2020E 2005 2010 2015 2020E

1 Passenger car & light truck (<6t); source: IHS Dec 2015.

135

VIII. Rubber Group Additional Tire Production Capacity of around 30 mn Units by 2017/18

(mn units) +3 Kaluga +2 (RU) +0.4 Otrokovice +0.8 Mount Vernon (CZ) (US) +11 +6 Puchov +0.5 (SK) Hefei Sumter (CN) (US) +1.3 +0.7

+3 Modipuram +0.3 (IN)

Camaçari (BRA)

Passenger tires

Truck tires

VIII. Rubber Group Tires: Key Initiatives 2001 – Vision 2025

Stage 1: 2001 – 2010 Stage 2: 2011 – 2015 Stage 3: 2016 – 2025

Create Value Sustain Value Enhance Value

› Global footprint and business › Accelerate global growth › Balanced global footprint optimized (focus on BRIC countries) › Benefit from excellent cost › Strong cost focus › Leverage cost position position

› Global presence of CVT sustained › Improve technology position to › Achieve podium position in (SAM/APAC) establish among “Best In Class” technology worldwide

› Turnaround of PLT business in NAFTA succeeded

› Worldwide technology gap to competition closed

Continuous value creation is our driving force!

137

VIII. Rubber Group Tires Vision 2025 – Towards a more Balanced Footprint

Passenger & Light Truck Tires1 Truck Tires1 Specialty – Commercial2

2025 2025 2025 7% 21%

72%

21%

5% 46% 50% Specialty – Consumer2 74% 4% 2025 16% 3%

81%

Note: Inner circle as of 2012. Outer circle vision 2025. The Americas APAC EMEA 1 Based on unit sales. 138 2 Based on net sales. © Continental AG Fact Book 2015 | 77

VIII. Rubber Group Cumulative Market for ContiTech Products

Σ~€50 bn

Σ~€40 bn

2014 2020

Mobile Fluid Systems¹ Industrial Fluid Systems¹ Benecke-Kaliko Group Conveyor Belt Group Vibration Control Power Transmission Group Air Spring Systems Elastomer Coatings Compounding Technology Source: Market Data and Continental estimates. 139 1 Since early 2016 the Business Unit Fluid Technology is organized into Mobile Fluid Systems and Industrial Fluid Systems.

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group 82 VIII. Rubber Group – Tires Division 141 IX. Share and Bond Information 161 X. Glossary 170

VIII. Tires Business Units and Tire Brands

Passenger Passenger Passenger Passenger and Light and Light and Light and Light Commercial Vehicle Tires Two Wheel Truck Tires Truck Tires Truck Tires Truck Tires Tires Original Replacement Replacement Replacement Truck Tires Truck Tires Truck Tires Commercial Equipment EMEA The Americas APAC EMEA The Americas APAC Specialty Tires Tires and Tires, services and solutions Tires, services tubes for: Tires for: and solutions for customer segments: for the › Bicycles: applications: Race, › Compact, medium-size and full-size cars Mountainbike, › Goods City/Trekking › 4x4 and SUVs › Material › People handling › Motorcycles: › Vans, light trucks and recreational vehicles › Agriculture Scooters, Big › Construction bikes >150cc, Earthmoving › Bikes <150cc

1 2 3

3 Ext. mobility systems: › SSR › Minispares 4 › Conti KomfortKit › Conti MobilityKit › ContiSeal –––Segmentation into Premium, Quality and Budget. 1 Except NAFTA, Colombia, Peru. ContiSilent 2 › Only in Australia and Taiwan. 3 NVH enginee- Trademark rights for Malaysia, Singapore and Brunei. 141 ring services 4 Only in Australia, China, Malaysia and Taiwan.

VIII. Tires Key Figures

(in mn €) 2013 2014 2015 Sales 9,583.2 9,784.4 10,408.8

EBITDA 2,137.7 2,280.8 2,604.3 in % of sales 22.3 23.3 25.0 EBIT 1,752.7 1,829.4 2,085.2 in % of sales 18.3 18.7 20.0 EBIT adjusted1 1,856.6 2,109.0 in % of sales1 19.0 20.4

Operating assets (average) 4,645.8 4,932.0 5,322.2 ROCE 37.7 37.1 39.2 R, D & E expenses 204.7 216.9 244.9 in % of sales 2.1 2.2 2.4 Capex2 798.6 724.3 658.2 in % of sales 8.3 7.4 6.3 Depreciation & amortization3 385.0 451.4 519.1 in % of sales 4.0 4.6 5.0 thereof impairment4 -1.3 — 6.8

1 2 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 3 Capital expenditure on property, plant and equipment and software. 4 Excluding impairment on financial investments. Impairment also includes necessary reversals of impairment losses. 142 © Continental AG Fact Book 2015 | 79

VIII. Tires Sales by Market

Other countries Other countries 8% 7% Asia Germany Germany 9% Asia 19% 15% 6%

NAFTA Sales in 2010: €7.2 bn Sales in 2015: €10.4 bn 21% NAFTA 27%

Europe (excluding Europe Germany) (excluding 42% Germany) 46%

143

VIII. Passenger and Light Truck Tires Market Share for Passenger and Light Truck Tires1 2015

Continental 2 Europe All others Goodyear/Sumitomo3 Michelin

North America Continental Bridgestone/Firestone All others Goodyear Michelin

Source: Continental estimates. 1 Replacement. 2 Western and Central including Turkey. 144 3 Dissolving of alliance in October 2015. Market share of all suppliers other than top 3 © Continental AG Fact Book 2015 | 80

VIII. Commercial Vehicle Tires Market Share for Truck Tires1 2015

Bridgestone/Firestone 2 Continental 3 Europe All others Goodyear/Sumitomo Michelin

North America Continental Bridgestone/Firestone All others Goodyear Michelin

Source: Continental estimates. 1 Replacement. 2 Western and Central, incl. Turkey. Market share of all suppliers other than top 3 145 3 Dissolving of alliance in October 2015.

VIII. Passenger and Light Truck Tires Continental Worldwide PLT Production 20151

(in mn units) 11

5 2

6 Mount Vernon Sumter (US) (US) Hefei (CN) 3 San Luis Potosí 2 (MX) 7

Alor Star / Cuenca Petaling Jaya (EC) (MY) Camaçari (BR) 3

Port Elizabeth (ZA)

VIII. Passenger and Light Truck Tires Continental European PLT Production 2015 2

(in mn units) Kaluga (RU) 9 21 8 14 10 Korbach Aachen Otrokovice 16 (DE) (CZ) Puchov Sarreguemines (SK) (FR) 18 Timişoara (RO)

Lousado (PT)

147

VIII. Commercial Vehicle Tires Continental Worldwide Truck Tire Production1 2015

(in mn units)

2.5 3.1 0.9

Otrokovice Puchov (CZ) Mount Vernon2 (SK) (US)

0.4 0.2

0.6 Modipuram Petaling Jaya 0.2 (IN) (MY) Camaçari Cuenca (BR) (EC)

0.05

Port Elizabeth (ZA)

1 Production of bias and radial tires. 2 Including deliveries to joint venture partners. 148 © Continental AG Fact Book 2015 | 82

VIII. Tires Cost of Labor at Continental Manufacturing Sites1

Germany 100% France 90% USA 79% Mexico 66% Portugal 56% Ecuador 37% Slovakia 36% Czech Republic 35% Brazil 30% South Africa 27% Romania 23% Russia 20% China 17% Malaysia 13% India 8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1 Based on average currency exchange rates 2015. 149

VIII. Passenger and Light Truck Tires Product Mix Improvement

Winter tires worldwide1 High performance summer tires worldwide2 (in mn units / increase year-over-year in %) (in mn units / increase year-over-year in %)

40,3% 42

37 35 32 29 22 22 21 21 21 21 24 13,2% 21,8% 14,0% 6,8% 6,5% 7,0% 3,8% 0,7% 1,7% 0,7% -3,0%

2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

1 OE and replacement (excl. all-season tires). 150 2 All summer tires and all-season tires with rim sizes of at least 17 inches. © Continental AG Fact Book 2015 | 83

VIII. Passenger and Light Truck Tires Unit Sales 2010 – 2015

(in mn units) 160

134 140 128 123 122 124 12 114 10 120 6 8 9 5 35 100 29 33 25 30 32

88 40 84 87 84 84 86

0 2010 2011 2012 2013 2014 2015 Europe (incl. Rest of world) The Americas Asia / Pacific

151

VIII. Commercial Vehicle Tires Unit Sales 2010 – 2015

(in mn units) 9,0 8.2 7.8 8,0 7.5 0,8 7.0 7.1 0,9 7,0 0,8 6.3 0,4 0,7 6,0 0,3 4,1 5,0 3,6 3,9 3,5 3,5 3,2 4,0

3,0

2,0 3,3 2,8 3,1 2,9 3,1 3,0 1,0

0,0 2010 2011 2012 2013 2014 2015 Europe (incl. Rest of world) The Americas Asia / Pacific

Topics

I. Continental at a Glance 3 II. Continental Strategy 15 III. Automobile Megatrends 25 IV. Sustainability at Continental 47 V. Continental Corporation 60 VI. Market Data 69 VII. Automotive Group 82 VIII. Rubber Group – ContiTech Division 154 IX. Share and Bond Information 161 X. Glossary 170

153

VIII. ContiTech Business Units and Key Products

Air Spring Systems Benecke-Kaliko Group Compounding Technology Conveyor Belt Group Elastomer Coatings

› Air suspensions systems › Technical and decorative › Compounds › Steel cord / fabric belts › Coated fabrics for bus, trucks rail vehicle surface materials for › Compound development › Special-purpose belts › Printing blankets/ -forms › Compensators automotive interior trim › Testing services › Conveyor belts › Diaphragms /-materials components › Gasholder diaphragms › Air actuators for › Surface materials for pneumatics industrial applications › PVC light belts › Collapsible fuel tanks › Service material › Collapsible tanks › Air springs for vibration isolation › Rubber tracks › Concertina walls

Industrial Fluid Systems1 Mobile Fluid Systems1 Power Transmission Group Vibration Control

› Industrial hoses ›Hoselines in vehicles › V-belts › Rubber-to-metal bonded › Fittings › Exhaust & fuel systems › Multiple V-ribbed belts products › Timing belts › Hydromounts › Hoses for onshore & › Powertrain › Flat belts › Mount systems offshore applications › Air conditioning › PERFORMANCE › Belt drive systems › Precision molded parts › Heating / cooling systems › AFFINITY › Blow molded parts › Steering and chassis › Plastic parts › RESPONSIBILITY › Turbocharger

154 1 Since early 2016 the Business Unit Fluid Technology is organized into Mobile Fluid Systems and Industrial Fluid Systems. © Continental AG Fact Book 2015 | 85

VIII. ContiTech Forming a Global Player in Rubber and Plastics Technologies

Top 10 Non-Tire Rubber Companies – 2014 Sales (€ mn)

6,000 Non-Tire Rubber Sales 5,000

4,000

3,000

2,000

1,000

0 ContiTech Bridgestone Freudenberg Hutchinson Sumitomo Trelleborg AB Cooper Pinafore NOK Parker-Hanifin & Veyance Diversified (Seals and Riko (excl. wheel Standard (Tomkins) (Seal Filtration and Products Vibration business) Business) Engineered Control Tech.) Systems

155

VIII. ContiTech Locations Worldwide 109 sites for production and R&D in 27 countries. Divisional headquarters in Hanover, Germany.

Czech Republic Greece Poland Serbia Spain Germany China ▐ Ostrava-Hrabova ▐ Vólos ▐ Wągrowiec ▐ Subotica ▐ Pamplona ▐ Aachen ▐ Herzogenaurach ▐ Changchun ▐ Veliki Crljeni ▐ Bad Blankenburg ▐ Hofheim France Hungary Romania Turkey ▐ Changshu ▐ Berlin/Hoppegarten ▐ Karben ▐ ▐ Andrezieux ▐ Makó ▐ Carei Slovakia ▐ Bursa Changzhi ▐ Dannenberg ▐ Korbach ▐ ▐ Lyon ▐ Nyiregyhaza ▐ Nadab ▐ Dolné ▐ Cerkezköy Changzhou ▐ Eislingen ▐ Kohren-Salis ▐ ▐ Szeged ▐ Timişoara Vestenice Hangzhou Finland UK ▐ Geithain ▐ Moers ▐ ▐ Ninghai ▐ Tampere ▐ Vác Russia Puchov ▐ Ashington ▐ Hamburg ▐ Northeim ▐ Qingdao ▐ Moscow ▐ Grimsby Slovenia ▐ Hanover ▐ Oedelsheim ▐ Shanghai ▐ Kaluga ▐ ▐ Thetford Canada Kranj ▐ Hann. Münden ▐ Oppenweiler ▐ Sanmen ▐ Wigan ▐ Bowmanville ▐ Hedemünden ▐ Salzgitter ▐ Tianjin ▐ Saint Alphonse de Granby ▐ Waltershausen ▐ Yanzhou ▐ Zhangjiagang USA South Korea ▐ Auburn Hills ▐ Norfolk ▐ Cheonan ▐ Fairlawn ▐ Porterdale ▐ Jeonju ▐ Halstead ▐ Rochester Hills ▐ Yangsan ▐ ▐ Hannibal Somersworth Japan ▐ ▐ Spring Hope Hogansville ▐ Kurashiki ▐ ▐ St. Marys Houston ▐ Yokohama ▐ Lincoln ▐ Sun Prairie ▐ Marysville ▐ Trumann ▐ Mount Pleasant Mexico Brazil India ▐ Chihuahua ▐ Kolkata ▐ Americana ▐ Delicias ▐ Haryana ▐ Macaé ▐ Mexico City ▐ Ponta Grossa ▐ Montemorelos Venezuela South-Africa Australia ▐ Santana de Parnaiba ▐ Monterrey ▐ Tinaquillo ▐ Uitenhage ▐ Bayswater ▐ San Luis Potosí Chile ▐ Santiago de Chile

▐ Production/R&D ▐ Cooperation, Joint Ventures < 50%

VIII. ContiTech Key Figures

(in € millions) 2013 2014 2015 Sales 3,878.3 3,931.2 5,367.8

EBITDA 576.3 551.8 577.2 in % of sales 14.9 14.0 10.8 EBIT 462.1 433.3 170.6 in % of sales 11.9 11.0 3.2 EBIT adjusted1 437.2 435.0 in % of sales1 11.1 10.4

Operating assets (average) 1,267.5 1,407.2 3,234.4 ROCE 36.5 30.8 5.3 R, D & E expenses 84.6 85.3 107.5 in % of sales 2.2 2,2 2,0 Capex2 166.0 190.6 245.2 in % of sales 4.3 4.8 4.6 Depreciation & amortization3 114.2 118.5 406.6 in % of sales 2.9 3.0 7.6 thereof impairment4 0.2 — 86.1

1. 2 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation. 3 Capital expenditure on property, plant and equipment and software. 4 Excluding impairment on financial investments. Impairment also includes necessary reversals of impairment losses.

157

VIII. ContiTech Sales by Market

Other countries 7% Other countries 8% Asia 17% Germany Asia 38% 14% Germany 24%

NAFTA NAFTA Sales in 2010: €3.1 bn Sales in 2015: €5.4 bn 26% 7%

Europe Europe (excluding (excluding Germany) Germany) 34% 25%

158 © ContinentalAG Topics Product Overview VIII. ContiTech VIII. VII. IX. VI. IV. III. Printing Industry Rail TransportTechnology Mining Industry Mechanical &Plant Engineering X XX XXXXXX XX Occupational Safety Shipbuilding and Ports Shipbuilding and Comm. & IndustryComm.Vehicles/Buses & Food Industry Energy Industry Compressors Automotive Industry Agriculture Aerospace Industry X. V. II. I. Glossary Bond Information Share and Rubber Group Automotive Group Market Data Continental Corporation Continental at Sustainability Automobile Megatrends Continental Strategy Glance a Continental at XX XXXXXXX X XXX XXXX XXX X XXXXXXXXXX XX X X XXX X X X XX XXX X Air spring systems/ air actuators

XXXX X XX XXXXXX X Collapsible containers/tanks

Concertina walls X X X X X XX XXX X Conveyor belts & service materials

Coupling elements

XXX Diaphragms/diaphragm materials XX X Drive belts X XXX XX XX Elastomer compounds/sheetings

Expansion Joints

Floor coverings

Gas holder diaphragms X XXXXX X X X X X X X Hoses/hose line systems

Industrial composite materials X XX Insulation materials

XX Printing blankets and plates

Rubber Track X XXXX XX XX Sealing elements/ moulded parts X X X X X Special conveyor belts 170 161 131 25 15 82 69 60 47 Vehicle interior soft trim 3 X X X

IX. Share and Bond Information 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, 2015 200,005,983

ADR Data1 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

1 As at January 2016. 161

IX. Share and Bond Information Share Price Development vs. Major Stock Indexes

1400%,

1200%,

1000%,

800%

600%

400%

200%

0% Jan-11 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-12 Jan-13 Jan-14 Jan-15 Continental DAX EURO STOXX 50 EURO STOXX Automobile & Parts

IX. Share and Bond Information Common Stock 600 Common stock (in € mn) Number of shares (in mn)

512 512 512 512 512 512 500

433

400

300

200 200 200 200 200 200 200 169

100

0 2009 2010 2011 2012 2013 2014 2015

163

IX. Share and Bond Information Shareholder Structure

Asia, Unidentified Australia 6,7% and Africa UK & 4,5% Ireland Free Float 29,8% 54,0%

Shareholder structure Shareholder structure of the free float as at December 31, 2015 US & (93.3% identified) Canada as at December 31, 2015 24,2% Schaeffler Group 46,0% Germany Rest of 13,0% Europe 5,1% France Germany 4,9% Scandinavia (retail) 6,6% 5,2%

IX. Share and Bond Information Bond Details

Conti-Gummi Finance B.V., Continental Rubber of Issuer Continental AG Continental AG Netherlands1 America, Corp.1

Issue Senior Notes Senior Notes Senior Notes Senior Notes Principal amount €750 mn €750 mn €750 mn €500 mn Offering price 99.595% 98.950% 99.228% 99.739% Ba1 (Moody’s4) Ba2 (Moody’s4) Ba1 (Moody’s4) Rating at issuance date BB (S&P) BB (S&P) BB (S&P) BBB (S&P) BBB (Fitch2) BB (Fitch2) BBB (Fitch2) BBB (Fitch) Current corporation BBB (Fitch), BBB (S&P), Baa1 (Moody’s4) and bond ratings3

Coupon 2.5% p.a. 3.0% p.a. 3.125% p.a. 0.5% p.a. Issue date September 19, 2013 July 16, 2013 September 9, 2013 November 19, 2015 Maturity March 20, 2017 July 16, 2018 September 9, 2020 February 19, 2019

Annual Annual Semi annual Annual Interest payment February 19, commencing March 20 January 16/July 16 September 9 on February 20, 2017 WKN A1VC6B A1X24V A1X3B7 A1Z7C3 ISIN XS0972719412 XS0953199634 XS0969344083 DE000A1Z7C39 €1,000 with min. tradable €1,000 with min. tradable €1,000 with min. tradable €1,000 with min. tradable Denomination amount €1,000 amount €1,000 amount €1,000 amount €1,000

1 Guaranteed by Continental AG. 2 Non-contracted rating at date of issuance. 3 Fitch since July 15, 2013; S&P since December 6, 2013; Moodyʼs since June 30, 2015. 4 Non-contracted rating since February 1, 2014. 165

IX. Share and Bond Information Development of the Bonds

February 22, 2016 114 (in%) 112

110

108

106

104

102

100

96 September 2013 September 2014 September 2015

2.5 % March 2017 3.0 % July 2018 4.5 % Sept. 2019 3.125 % Sept. 2020 0.5% Feb. 2019

IX. Share and Bond Information Development of Continental’s Credit Rating Standard & Poor’s 1 Moody’s 2 Fitch 3 S&P, Fitch / Moody’s

BBB+ / Baa1

BBB / Baa2 grade Investment

BBB- / Baa3

BB+ / Ba1

BB / Ba2 Grade Before Non-Investment BB- / Ba3 Siemens VDO

B+ / B1

B / B2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Solicited rating since May 2000. 2 Non-contracted rating since Feb. 1, 2014. 167 3 Solicited rating since November 2013.

IX. Share and Bond Information 10 Year Financial Overview

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Balance sheet Non-current assets in € millions 19,666.6 16,923.3 15,569.5 15,685.7 15,075.5 14,887.9 14,724.6 16,348.4 17,383.9 5,877.9 Current assets in € millions 13,169.1 13,317.8 11,251.3 11,764.4 10,962.9 9,502.6 8,324.6 8,339.5 10,353.7 4,975.1 Total assets in € millions 32,835.7 30,241.1 26,820.8 27,450.1 26,038.4 24,390.5 23,049.2 24,687.9 27,737.6 10,853.0 Shareholders' equity (excl. non-controlling interests) in € millions 12,786.3 10,672.1 9,011.2 7,779.0 7,146.1 5,859.6 3,772.6 5,265.4 6,583.2 4,470.8 Non-controlling interests in € millions 427.6 352.5 311.0 377.4 397.2 343.3 289.1 264.5 272.9 239.1

Total equity (incl. non-controlling) in € millions 13,213.9 11,024.6 9,322.2 8,156.4 7,543.3 6,202.9 4,061.7 5,529.9 6,856.1 4,709.9 Equity ratio1 in % 40.2 36.5 34.8 29.7 29.0 25.4 17.6 22.4 24.7 43.4 Capital expenditure2 in € millions 2,178.8 2,045.4 1,981.1 2,019.4 1,711.3 1,296.4 860.1 1,595.2 896.9 805.0 Net indebtedness in € millions 3,541.9 2,823.5 4,289.3 5,319.9 6,772.1 7,317.0 8,895.5 10,483.5 10,856.4 1,181.0 Gearing ratio in % 26.8 25.6 46.0 65.2 89.8 118.0 219.0 189.6 158.3 25.1 Income statements Sales in € millions 39,232 34,505.7 33,331.0 32,736.2 30,504.9 26,046.9 20,095.7 24,238.7 16,619.4 14,887.0 Share of foreign sales in % 78.6 76.6 76.2 75.4 73.7 72.8 71.0 68.5 69.2 67.6 Cost of sales3 in % 74.1 74.9 76.6 78.3 79.0 77.8 80.0 80.4 75.8 75.3 Research and development expenses3 in % 6.2 6.2 5.6 5.3 5.3 5.6 6.7 6.2 5.0 4.5 Selling expenses3 in % 5.6 5.3 5.0 4.8 4.7 5.0 5.6 4.9 5.5 5.7 3 Administrative expenses in % 2.4 2.2 2.1 2.0 2.1 2.5 3.0 3.2 2.7 3.0 EBITDA in € millions 6,001.4 5,133.8 5,095.0 4,967.4 4,228.0 3,587.6 1,591.2 2,771.4 2,490.6 2,301.5 EBITDA3 in % 15.3 14.9 15.3 15.2 13.9 13.8 7.9 11.4 15.0 15.5 Personnel expenses in € millions 9,164.6 7,757.2 7,124.5 6,813.7 6,354.3 5,891.7 5,199.8 5,746.3 3,652.7 3,175.2 Depreciation and amortization4 in € millions 1,885.8 1,789.0 1,831.3 1,781.2 1,631.1 1,652.4 2,631.6 3,067.6 814.8 699.6 Net income attributable to the shareholders of the parent in € millions 2,727.4 2,375.3 1,923.1 1,905.2 1,242.2 576.0 -1,649.2 -1,123.5 1,020.6 981.9 Dividend and earnings per share Dividend for the fiscal year in € millions 750.0 650.0 500.0 450.0 300.0 — — — 323.4 293.1 Number of shares at December 31 in millions 200 200.0 200.0 200.0 200.0 200.0 169.0 169.0 161.7 146.5 Net income (per share) attributable to the shareholders of the parent €13.64 11.88 9.62 9.53 6.21 2.88 -9.76 -6.84 6.79 6.72 Employees Annual average in thousands 204.7 186.0 175.4 169.0 159.7 133.4 148.4 93.9 81.6 142.7

1 Including non-controlling interests. 4 Excluding impairment on financial investments. 2 Capital expenditure on property, plant and equipment, and software. 5 Subject to the approval of the Annual Shareholders’ Meeting on April 30, 2015. 168 3 As a percentage of sales. 6 IAS 19 (revised 2011), Employee Benefits, has been applied since 2012. © Continental AG Fact Book 2015 | 92

Topics

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X. Glossary Financial Glossary

ADR American Depositary Receipt Capex Capital expenditure on property, plant and equipment, and software EBIT Earnings Before Interest and Taxes EBITDA EBIT Before Depreciation and Amortization EBIT margin EBIT as a percentage of sales EBITDA margin EBITDA as a percentage of sales FCF Free Cash Flow. We define FCF as cash provided by operating activities minus cash used for investing activities Gearing ratio Represents the net indebtedness divided by book value of equity, expressed as a percentage ISIN International Securities Identification Number Net indebtedness The net amount of interest-bearing financial liabilities as recognized in the statement of financial position, cash and cash equivalents, the positive fair values of the derivative instruments as well as other interest bearing investments. NIAT Net Income Attributable to the shareholders of the parent OA Operating assets are the assets less liabilities as reported in the balance sheet, without recognizing the net indebtedness, discounted trade bills, deferred tax assets, income tax receivable and payable, as well as other financial assets and debts. PPA Purchase Price Allocation R, D & E expenses Research, Development and Engineering Expenses ROCE (average) Return On Capital Employed. We define ROCE as the ratio of EBIT to average operating assets for the fiscal year

X. Glossary Product and Division Glossary

ABS Anti-Lock Brake System LT Light Truck ACC Adaptive Cruise Control NVH Noise Vibration Harshness ADAS Advanced Driver Assistance Systems OCB Optimized Curve Break CAGR Compound Annual Growth Rate PC Passenger Car C&S Chassis & Safety Division PLT Passenger and Light Truck Tires CT ContiTech Division PT Powertrain Division CV Commercial Vehicle RV Recreational Vehicle CVT Commercial Vehicle Tires SSR Self-Supporting Runflat Tires ECU Electronic Control Unit SUV Sport Utility Vehicle EBS Electronic Brake System TCS Traction Control System ESC Electronic Stability Control TPMS Tire Pressure Monitoring System HEV Hybrid Electric Vehicle HMI Human Machine Interface I Interior Division

171

Contact Data

Vahrenwalder Str. 9 Michael Saemann 30165 Hanover Analysts, Institutional Investors and Sustainability Investors Germany Phone: +49 511 938 1307 e-mail: [email protected] e-mail: [email protected] www.continental-ir.com Klaus Paesler Rolf Woller Analysts, Institutional Investors, ADR and Private Investors Head of IR Phone: +49 511 938 1316 Phone: +49 511 938 1068 e-mail: [email protected] e-mail: [email protected] Sabine Reese Ingrid Kampf Sustainability, ASM, CMD Organization, IR Webpage, Assistant to the Head of IR Capital Market Disclosure Requirements Roadshow and Conference Organization Phone: +49 511 938 1027 Phone: +49 511 938 1163 e-mail: [email protected] Fax: +49 511 938 1080 e-mail: [email protected] Henry Schniewind Analysts, Institutional Investors Phone: +49 511 938 1062 e-mail: [email protected]

Marvin Kalberlah Social Media Phone: +49 511 938 14034 e-mail: [email protected]

Investor Relations Online

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173

Financial Calendar

2016 Preliminary figures for the fiscal year 2015 January 11, 2016 Annual Financial Press Conference March 3, 2016 Annual Shareholders’ Meeting (incl. key data for Q1 2016) April 29, 2016 Q1 Financial Report May 4, 2016 Half Year Financial Report August 3, 2016 Nine Month Financial Report November 10, 2016

2017 Preliminary figures for the fiscal year 2016 January 2017 Annual Financial Press Conference March 2017 Annual Shareholders’ Meeting (incl. key data for Q1 2017) April 28, 2017 Q1 Financial Report May 2017 Half Year Financial Report August 2017 Nine Month Financial Report November 2017

174 Continental Aktiengesellschaft Investor Relations P.O. Box 169, 30001 Hanover, Germany Vahrenwalder Str. 9, Hanover, Germany Phone +49 511 938-1163, Fax +49 511 938-1080 E-mail [email protected] www.continental-ir.com

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