Schaeffler Group
Barclays European High Yield and Leveraged Finance Conference 2014
London – October 30, 2014 Disclaimer
This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about Schaeffler Group's beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, and Schaeffler Group undertakes no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on Schaeffler AG management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results may differ from those set forth in the forward- looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and other factors beyond our control). This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal with all aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither Schaeffler Group nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler Group which are subject to change and audit.
Page 2 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 1 Schaeffler at a glance Schaeffler – A leading technology provider
NumberSchaeffler of Grouppatent atregistrations a glance in Germany1) StrongNumber sales of patent growth registrations from 2009 in- 2013Germany1) in EUR bn 4 Leading manufacturer of high-precision components CAGR +11% and systems for automotive and industrial applications 10.7 11.1 11.2 9.5 4 Global footprint with over 80,000 employees in more than 50 countries 7.3 4 Above industry average profitability and revenue growth
4 Strategic participation in Continental AG 2009 2010 2011 2012 2013 inSales EUR by mn segment Sales by region
Industrial Americas 21% 27%
11% 73% Greater China Automotive 58% Europe¹) 10% Asia/Pacific
1) Incl. Germany, Western, Southern and Eastern Europe, Middle East, Africa, Russia and India
Page 3 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 1 Schaeffler at a glance A strong history of above average growth
Development of sales 2004 - 20131) EBIT and EBITDA 2004 - 20131) in EUR bn in EUR bn
11.1 11.2 2.2 CAGR +5% 10.7 2.1 2.1 2.0 9.5 9.0 8.9 1.7 1.7 1.7 8.3 7.9 1.5 7.3 7.3 1.4
1.1
1.7 1.5 1.4 1.4 1.0 1.1 1.1 1.0 0.8 0.7
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 20132)
EBITDA margin Sales growth 19.0% 19.5% 19.9% 19.4% 19.4% 15.0% 22.1% 21.0% 18.8% 18.4% EBIT margin 7.2% 8.7% 4.7% 8.4% -1.2% -17.6% 29.4% 12.6% 4.0% 0.9% 10.8% 12.2% 12.9% 12.6% 11.7% 6.1% 15.9% 15.8% 12.7% 12.6%
EBIT EBITDA
1) 2004-2005 according to German GAAP, 2006-2013 according to IFRS 2) Adjusted EBIT and EBITDA
Page 4 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 1 Schaeffler at a glance Two divisions with top three positions in core market sectors
Automotive Industrial
Transmission Systems Engine Systems Production Machinery Aerospace
Chassis Systems Energy and Raw Material Mobility
Aftermarket Aftermarket
Page 5 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 1 Schaeffler at a glance Our key success factors – Quality, Innovation and Technology
Number of patent registrations in Germany1) Core technologies
2,100
1,832 1,854 1,641
1,146
826 … basic materials (steel) … inhouse tool design
2008 2009 2010 2011 2012 2013
Rank in Germany
#5 #5 #4 #4 #4 #2 … precision … surface treatment 1) Source: Deutsches Patent- und Markenamt (DPMA) manufacturing
Page 6 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow Strategy refocused – "Mobility for tomorrow"
Environmentally friendly drives 1 2 Urban mobility
"Mobility for
tomorrow"
Interurban mobility 3 4 Energy chain
Page 7 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Environmentally friendly drives
Reduced losses
Efficiency for Increased variability environmental friendly drives
Electrification
Page 8 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Combustion engine remains dominant but will be further electrified
Powertrain concepts CO2 legislation worldwide
●LightTrends vehicle production Light vehicles in g CO2 2% 1% Proposed target 260 Enacted target 9% USA: incl. light duty vehicles 19% 240
35% 220
200
98% 180 80% 160 56% China: 117 g USA: 109 g in 2020 in 2025 140
120 Japan: 105 g in 2020 2013 2020 2030 100 EU: 95 g in 2020 Combustion engine Hybrids Electric 80 2000 2005 2010 2015 2020 2025
Source: University of Duisburg-Essen, 2012 Source: icct, 2013
Page 9 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Possible approaches to reduce the fleet-CO2-emissions
Three approaches
1. Optimization 2. Downsizing / 3. Hybridization/ conventional Downspeeding Electrification powertrain Example: Example: New Mercedes-Benz S-class Toyota Prius – most successful with 4 cylinders hybrid on the market + +
Threefold approach
Page 10 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Market specific concepts to fulfill regional requirements
Fiesta eWheelDrive Schaeffler Fiesta eWheelDrive Schaeffler CO ncept-10% Schaeffler 2 Hybrid Schaeffler CO ncept-10% Hybrid 2
Schaeffler ACTIVeDRIVESchaeffler ChinaChina ACTIVeDRIVE ConceptConcept Car Car
Gasoline Technology Car 1. Gasoline Diesel TechnologyEco Car Schaeffler Efficient Drive2. Diesel Eco Drive FutureSchaeffler Mobility Efficient North 3. 48V Democar AmericaFuture Mobility North America System 48V Schaeffler Efficient Schaeffler Efficient Future Mobility India Future Mobility India
Page 11 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Meeting stringent US emission targets of 2020 already today
Efficient Future Mobility – Fuel reduction in % Schaeffler North America Demonstration Vehicle Technology City Highway Belt Drive Friction 1.0 1.0 Optimization Valve Train Friction 0.5 0.5 Optimization Balance Shaft 0.6 1.0 Bearings Thermal Management 1.0 1.0 Module Adaptive Grill 0.2 0.8 Shutters Engine Start-Stop 6.0 2.0 § Developed in North America for market-specific AWD Disconnect 2.0 6.0 demands and customer requirements Wheel Bearings 0.5 1.0 § Schaeffler shows solutions for optimizing North Optimization American combustion engines and drive trains TC with Centrifugal § Additional fuel savings potential up to 15% Pendulum-type 3.0 1.0 Absorber Total: ~15 ~14
Page 12 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 1 Latest concept car shows further fuel saving potential
Gasoline Technology Car Fuel reduction in % (simulation according to NEDC)
Measure Reduction Start/stop 20 km/h 1.1 Recuperation 2.6 Torque repartition 0.8 Dedicated braking pedal 0.5 Free gear selection 5.4 External exhaust gas recirculation (EGR) 2.0 Electric heatable catalyst 2.0 Thermal management module (real simulation) 1.0 Total ~15 § Ford Focus, 1.0l 3-cylinder, turbo charger, 92 kW, 114 g/km Total incl. synergies between measures ~17 CO2, Start/Stop, EU5 § Mild Hybridization 48V BSA, thermal management module, coated tappets, decoupling belt tensioner, optimized turbo Emission reduction charger, engine control unit, injection system, heated catalyst, low-pressure EGR, hydr. clutch actuator, DMF with centrifugal pendulum absorber In addition to fuel savings, emission reduction § Fuel savings potential ~15% (aim ~17%: 95 g/km) and (NMHC, NOx, CO, PM) was achieved to comply with emission reduction EU6c the guideline EU6c.
Page 13 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 2 Urban Mobility
Today: 2025: 7.1 bn people 8.0 bn people 50% in metropolitan regions 60% in metropolitan regions
Page 14 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 2 Strong market development LEVs and e-bikes
LEVs volume per application worldwide Forecast sales E-Bikes
Units in mn. Units in mn. Golf cars 9.E+0790 50 RestRestl. of Welt world Micro EV quadricycle WesternWesteuropa Europe LEvs for disabled 8.E+0780 40 China E-Scooter /e-MC 7.E+0770 E-bike /Pedelec 30
6.E+0760 20 5.E+0750 10 4.E+0740
0 3.E+0730 2012 2013 2014 2015 2016 2017 2018 Source: Pike Research 2012 2.E+0720 § By 2018, the E-bike market is growing globally at an 1.E+0710 annual rate of 7.4%.
0.E+000 § 2018, the annual sales will be at 47 mn., with almost 95% of the market in China. § Majority of E-bikes in China without pedals, in Western Europe almost exclusively Pedelecs. Source: Light Electric Vehicles, Mobility Vehicles, E-Motorcycles and Micro-Evs (Quadricycles) 2013-2023, IDTechEx 2013
Page 15 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 2 Offering solutions for urban mobility requirements
Strong focus on electric mobility in China E-wheel drive
E-bikes and e-scooters Schaeffler innovation Electric motor, power electronics, brake, and cooling § Openness towards new system are installed inside the wheel rim technologies § Increasing income § Pursuit of individual mobility § Around 20-30 million e-bikes and e-scooters are sold each year in China
Schaeffler employees in China using e-bikes and e-scooters
Concept vehicle Ford Fiesta eWheelDrive New Energy Vehicles (NEVs)
§ NEVs are defined as fully electric or hybrid Driving systems especially for vehicles on four wheels urban use § Subsidies for Battery Electric Vehicles (150 km § Space-saving vehicle concept range) and Hybrid Electric Vehicles (50 km range) § Increased maneuverability § Minimum speed requirement: 100 km/h and safety
Page 16 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 3 Interurban Mobility
CO2 emissions of road freight transport 100% per tone-kilometer 80% (1991 = 100 %)
60%
40%
20%
1991 2004 2025 0% Source: UBA, IFEU
Page 17 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 3 Key technology partner for high speed trains
Mechatronic systems for freight traffic Schaeffler test rig
Generator Rolling bearing unit
Electronics module
Schaeffler test rig for railway axlebox bearings, Schweinfurt, DE and Anting, CN
§ FAG axlebox bearing for high-speed trains § Key influencing factors § Mechatronic functions in axlebox bearings can be tested in advance. § The integrated wheelset generator allows energy for § Different route profiles freight transport to be supplied and includes a monitoring can be simulated under system for freight trains field conditions.
Page 18 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 3 High precision components for the aerospace industry
Schaeffler aerospace solutions Technology development
Materials
Surface
Micro Structure Bearing Analysis
§ Materials and heat treatment technologies § Surface Engineering § Non-destructive test methods for new materials § Development of coatings § Design Integration Main shaft and § Advanced Cooling Concepts gearbox bearings, e.g. for Airbus A380 § Dynamic analysis & Simulation § Bearing rig testing § Condition Monitoring (“Intelligent Bearing”)
Page 19 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 4 Energy chain
GlobalSolar- investments und Windenergie in new power plants and infrastructure 2011-2020
Other Regenerative 4% Solar PV 7%
Power grids 44% Water 8% (Infrastructure)
Wind 12%
Nuclear 6%
Oil 1% Gas 6% Coal12%
Source: International Energy Agency (2011): World Energy Outlook
Page 20 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 2 Mobility for tomorrow 4 Innovative solutions for regenerative energies
Wave power Wind power
Schaeffler uses a special steel that is resistant to corrosion for the rolling bearing rings. Large-size bearing test rig in Schweinfurt, Germany
For ocean current power plants, Schaeffler develops bearing supports that can be directly installed in water. The water is the medium that provides the Schaeffler's spherical roller bearing "X-life" is the classic lubrication. bearing variant for the rotor main shaft in wind turbines.
Page 21 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Overview results H1 2014
in EUR mn H1 14 adj. Q2 14 adj. H1 14 H1 13 Q2 141) Q2 13 vs. H1 13 vs. Q2 13
Sales 5,990 5,614 +6.7% 3,014 2,858 +5.5% EBITDA/ 1,099 530 1,042 +5.7% 530 +2.1% Adj. EBITDA1) 1,101 541 EBITDA margin/ 18.3% 17.6% 18.6% -0.2%-pts. 18.5% -0.6%-pts Adj. EBITDA margin1) 18.4% 17.9% EBIT/ 787 373 724 +9.0% 369 +4.1% Adj. EBIT1) 789 384 EBIT margin/ 13.1% 12.4% 12.9% +0.3%-pts. 12.9% -0.2%-pts Adj. EBIT margin1) 13.2% 12.7% Net income 574 561 +13 mn 192 328 -136 mn
Working capital2) 2,786 2,343 -443 mn 2,786 2,343 -443 mn
Capex 298 229 +69 mn 143 108 +35 mn
Free cash flow -179 386 -565 mn -160 334 -494 mn
Net debt2) 6,362 5,890 +472 mn 6,362 5,890 -472 mn
Leverage ratio2) 3) 2.7 2.6 +0.1 2.7 2.6 +0.1
1) Excluding one-off efects 2) Prior year figure as per December 31, 2013 3) Net financial debt excl. shareholder loans to adjusted EBITDA ratio
Page 22 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Record sales of around EUR 6 bn in H1 2014
Sales H1 2014 sales by region1) in EUR mn in EUR mn / Y-o-y growth Asia/Pacific +6.7% 597 / +9.1% vs. H1 2013 10.0% 2,976 3,014 Greater China 2,756 2,858 2,811 2,780 689 / +25.0% 11.5%
58.6% 19.9% Americas Europe 1,194 / +1.2% 3,510 / +5.2%
5,614 5,591 5,990
1) Market view (= location of customers) Q1 Q2 Q3 Q4 Q1 Q2 Sales by division 2013 2014 in EUR mn D excl. H1 14 H1 13 D FX effects Gross profit margin in %
28.7 28.8 27.2 28.7 29.1 28.1 Automotive 4,437 4,075 +8.9% +11.7%
28.7 28.0 28.6 Industrial 1,553 1,539 +0.9% +4.3% Total 5,990 5,614 +6.7% +9.6%
Page 23 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Sales Automotive – Continued growth above market
Sales development Automotive1) Regional distribution
Europe Americas2) Asia/Pacific
+17% Greater China 10% +8% 12%
+3% +0% 58% Europe Americas 20%
World production: +4% Schaeffler Automotive OEM: +14% (operational sales growth) Asia/Pacific Greater China Key aspects +33% +15% § Schaeffler Automotive again strongly outgrew global
+10% automotive production in H1 2014 +1% § All business divisions and all regions contributed to overall growth
§ Strong sales growth in China results from high Production of light vehicles Operational sales growth localization rate and new production start-ups H1 2014 vs H1 2013 Schaeffler Automotive (OEM) (IHS Automotive) H1 2014 vs H1 2013 (by location of customer)
1) Schaeffler Automotive sales growth by region is not necessarily an indication of actual end-customer demand by region (e.g. European sales include components and systems sold to customers in Europe who ultimately export the final product to customer locations in North and South America as well as in Asia/Pacific). 2) Operational sales growth Schaeffler Automotive (OEM) in North America +24% (light vehicles production +4%) and in South America -18% (light vehicle production -16%) Page 24 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Sales Industrial – Improving trend
Sales trend Regional distribution 908 Asia/Pacific 870 839 Greater China 10% 789 789 770 764 11% 769 757 745
19% 60% Europe Americas
2012 2013 2014
Key aspects Sales H1 2014 vs. H1 2013
§ Sales Industrial with improving trend; FX-adjusted growth rate +4.3% (as reported 0.9%) in EUR mn H1 2014 H1 2013 D Industrial Applications § Positive order intake, orders on hand slightly above 976 971 +0.5% prior-year level Industrial Aftermarket 577 568 +1.6%
§ Slight increase in sales in Europe Total 1,553 1,539 +0.9% § Strong sales increase in Greater China across all sectors except Aerospace and Aftermarket
Page 25 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Free cash flow H1 2014 of minus EUR 179 mn due to one-off effects
Free cash flow Free cash flow H1 2014 in EUR mn in EUR mn
1,099
383
334 529 One-off 298 effects 203 168 159 1581) Refinancing 52 40 386 243 371
-19 Anti- 142 -179 trust 65 -179 fine -160 EBITDA Δ Net Capex Divi- Interest Taxes Other Free Q1 Q2 Q3 Q4 Q1 Q2 working dend payments cash capital from flow Conti- 2013 2014 nental
H1 2013
1,042 -157 -229 +162 -287 - - -153 +8 386
1) Prepayment fee EUR 114 mn + accrued interest EUR 29 mn + transaction cost EUR 15 mn
Page 26 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Results H1 2014 Leverage ratio at 2.7x
Net financial debt Development leverage ratio in EUR mn in EUR mn 12/31/13 06/30/14
Gross debt 6,190 6,833 6,834 6,475 6,172 6,362 - Cash 300 471 5,729 5,890 = Net financial debt 5,890 6,362
- Shareholder loans 443 607
= Net financial debt 5,447 5,755 3.3 (w/o shareholder loans) 3.1 2.7 2.6 2.6 2.7 ÷ LTM EBITDA adjusted 2,062 2,121
= Leverage ratio 2.6 2.7
645 607 301 343 284 443
Q1 Q2 Q3 Q4 Q1 Q2 Maturity profile 2013 2014 in EUR mn 1,7662) Gross debt 1) 1,239 1,135 7,292 7,037 6,089 6,190 6,395 6,833 1,000
Cash position 600 500 458 562 360 300 223 471
Shareholder Loans 2014 2015 2016 2017 2018 2019 2020 2021 2022 Leverage ratio (Net financial debt w/o shareholder loans / LTM Adjusted EBITDA) Existing bonds New loans
1) Assuming EUR/USD=1.3658 as of June 30, 2014 2) Assuming EUR/USD=1.28 as of October 16, 2014 Page 27 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 3 Outlook Guidance 2014 unchanged
Growth Profitability
Sales growth >7%1) EBIT margin 12-13%
Capex 6-8% of sales Free cash flow Positive
1) FX adjusted
Quality Innovation
Quality policy Further improve R&D expenses 5% of sales
Maintain leading Employees ~ 3,000 new jobs Innovation position in patent applications
Page 28 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 4 Financing and capital structure Financing structure continuously improved
Key development steps
January Comprehensive refinancing of OpCo indebtedness of €8.0 bn including 2012 first-time issuance of high-yield bonds Financing June / July Bank consortium further enhanced, issuance of €326 mn retail bond 2012 structure September Reduction of liabilities at Schaeffler Holding by €1.6 bn, shareholder OpCo/HoldCo 2012 structure simplified
December Refinancing of €5.6 bn OpCo facilities enhancing covenant, repayment and 2012 structural flexibility
February Repricing transaction of €1.6 bn equivalent OpCo facilities with 2013 institutional lenders Continuous capital April Restructuring of OpCo facilities and additional issuance of €1.25 bn 2013 high-yield bonds structure July Comprehensive refinancing of HoldCo indebtedness of €3.75 bn including issuance optimization 2013 of PIK Toggle Notes
September Reduction of liabilities at Schaeffler Group and Schaeffler Holding by 2013 approx. €1.3 bn
May Refinancing of €3.5 bn OpCo debt by placing €2.0 bn of new secured and unsecured 2014 bonds and €1.5 bn of new institutional term loans
October €1.8 bn equivalent OpCo loan refinancing and OpCo/HoldCo bond consent process Corporate 2014 completed to align terms and conditions; €1.0 bn OpCo RCF committed structure October Refinancing of €1.9 bn of HoldCo debt with €700 mn HoldCo bank loans Schaeffler Group 2014 and €1.2 bn HoldCo bonds
Page 29 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 4 Financing and capital structure Overview of new corporate and financing structure
Future corporate structure Financing structure (Pro Forma as of October 31, 2014)
Nominal in Debt instrument Interest Maturity Rating EUR mn TopCo INA-Holding Schaeffler GmbH & Co. KG HoldCo Term Loan 500 E+4.50% Oct-19 Not rated 100% HoldCo RCF (EUR 200 mn) - E+4.50% Oct-19 Not rated g n i Total Loan Facilities 500 Schaeffler Holding d l
GmbH & Co. KG o 6.875% SSNs 2018 (EUR)2) 800 6.875% Aug-18 B1 / B H
r 2) 3)
100% e 6.875% SSNs 2018 (USD) 781 6.875% Aug-18 B1 / B l f
f 2) HoldCo e 5.75% SSNs 2021 (EUR) 350 5.75% Nov-21 B1 / B a
HoldCo Schaeffler h 2) 3) Verwaltungs c 6.25% SSNs 2019 (USD) 371 6.25% Nov-19 B1 / B S Loans GmbH 6.75% SSNs 2022 (USD)2) 3) 527 6.75% Nov-22 B1 / B Total Bond Debt 2,829 HoldCo Schaeffler 100% Holding Schaeffler Holding Debt 3,329 Bonds Finance B.V. 100% Senior Term Loan B (EUR) 750 E4)+3.50% May-20 Ba2 /BB- Senior Term Loan B (USD)3) 1,016 L4)+3.50% May-20 Ba2 /BB- SVZ (formerly Senior RCF (EUR 1,000 mn) - E+2.875% Oct-19 Not rated Schaeffler AG) Total Loan Facilities 1,766 1)
Guarantee p 7.75% SSNs 2017 (EUR) 800 7.75% Feb-17 Ba2 / BB- u 3) 100% 100% Schaeffler Free o
r 7.75% SSNs 2017 (USD) 469 7.75% Feb-17 Ba2 / BB- float
Beteiligungs- G
holding r 4.25% SSNs 2018 (EUR) 600 4.25% May-18 Ba2 / BB-
11.8% e l
54.0% f 34.2% f 2.75% SSNs 2019 (EUR) 500 2.75% May-19 Ba2 / BB- e
OpCo a
h 3.25% Unsec.Ns 2019 (EUR) 500 3.25% May-19 B1 / B
OpCo Schaeffler AG c 3) Continental AG S 4.75% SSNs 2021 (USD) 664 4.75% May-21 Ba2 / BB- Loans (formerly IBH) 4.25% SSNs 2021 (USD) 3) 547 4.25% May-21 Ba2 / BB- 3.50% SSNs 2022 (EUR) 500 3.50% May-22 Ba2 / BB- Schaeffler Total Outstanding Bonds 4,580 OpCo Schaeffler Technologies Finance B.V. Schaeffler Group Debt 6,346 Bonds GmbH Total Total Debt 9,675
1) Schaeffler Beteiligungsholding guarantee and SVZ (formerly Schaeffler AG) guarantee will 2) Senior Secured PIK Toggle Notes 3) Assuming EUR/USD = 1.28 4) Floor of 0.75 % remain in place until fall-away conditions have been met (SVZ guarantee for benefit of OpCo debt to fall-away upon consent by or refinancing of 2017 OpCo Notes) Page 30 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 4 Financing and capital structure Key investment highlights
1 Leading positions in growing markets
2 Technology, quality and innovation leadership
3 Shaping "Mobility for tomorrow" by focusing on four key areas
4 Strong profitable growth and sustainable cash flow generation
5 Continuous optimization of balance sheet
Page 31 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014 Schaeffler IR contact
Investor Relations Financial calendar 2014
phone: + 49 9132 82 4440 Results Q3 2014: November 20, 2014 fax: + 49 9132 82 4444 Results FY 2014 March 26, 2015 [email protected] www.schaeffler-group.com/ir
Page 32 Schaeffler · Barclays European High Yield and Leveraged Finance Conference 2014 · October 30, 2014