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Fact Book Fiscal Year 2008 I. Continental at a Glance Equity and Debt Markets Relations Fact Book FY 2008 2 / © Continental AG Continental at a Glance Continental AG, based in Hanover, Germany The company was founded in 1871 It operates worldwide as an automotive supplier with sales of € 24,238.7 mn in 2008 Continental employees numbered 139,155 at the end of 2008 Acquisitions in the fields of brakes and chassis (Teves 1998) as well as electronic technologies (Temic 2001) have transformed Continental from a pure rubber based manufacturer into a leading automotive technology supplier With the acquisition of Phoenix in 2004, Continental became one of the world’s largest non-tire rubber product manufacturers Acquisition of Motorola’s Automotive Electronic Business in 2006 took active/passive safety competence of our Automotive Systems division to the next level and improved market position in North America With the acquisition of Siemens VDO Automotive AG in 2007, Continental is now an integrated automotive supplier of system solutions for powertrain and safety technologies as well as information management and has improved its market position in Europe, North America and Asia Equity and Debt Markets Relations Fact Book FY 2008 3 / © Continental AG Continental at a Glance Portfolio 2008 Sales 2008 € 24,238.7 mn EBIT / EBIT clean* 2008 € -296.2 mn / € 1,837.3 mn EBIT margin / EBIT margin clean* 2008 -1.2% / 7.6% Automotive Group Rubber Group Chassis Passenger and Commercial Powertrain Interior ContiTech & Safety Light Truck Tires Vehicle Tires Headed by: Headed by: Headed by: Headed by: Headed by: Headed by: K.-T. Neumann K.-T. Neumann K.-T. Neumann H.-J. Nikolin H.-J. Nikolin H.-G. Wente COO R. Cramer COO H. Matschi COO N. Setzer ** No.1 for No.1 for No.1 for No.1 in Europe No.1 for Nr. 1 ww for non- foundation transmission instrument No.1 in Europe industrial tires in tire rubber brakes control clusters for OE Europe products No.2 for EBS and No.2 for diesel No.1 for tacho- No.1 in Europe No.2 in Europe No.1 in 6 out of 7 brake boosters systems graphs in CV for winter tires in OE business units in No.1 for airbag No.2 for gasoline No.1 for No.3 in Europe Europe electronics systems telematics Sales € 5,134.0 mn Sales € 4,040.0 mn Sales € 5,856.7 mn Sales € 5,100.3 mn Sales € 1,404.2 mn Sales € 3,007.0 mn EBIT € 303.1 mn EBIT €-1,046.2 mn EBIT € -462.6 mn EBIT € 626.4 mn EBIT € 29.5 mn EBIT € 329.1 mn EBIT margin 5.9% EBIT margin -25.9% EBIT margin -7.9% EBIT margin 12.3% EBIT margin 2.1% EBIT margin 10.9% * EBIT w/o amortization of intangibles from PPA & depreciation of tangibles from PPA (Siemens VDO only) and special effects ** Temporary Equity and Debt Markets Relations Fact Book FY 2008 4 / © Continental AG Continental at a Glance Continental Corporation – Sales / Net income* (€ million) ¼HGB ¼ US GAAP ¼ IFRS 24,239 16,619*** 14,887 13,837 12,597 11,233 11,408 11,534 10,115 9,132 1,507 1,602 1,676 Sales 6,743 1,157 5,719 694 855 5,333 607 398 533 EBIT 269 322 33 930 982 1,021 716 -296 314 NIAT** 98 165 138 235 205 226 -258 -1,124 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 * From 1998 until 2003 US GAAP / from 2004 onwards IFRS ** Net income attributable to the shareholders of the parent under IFRS *** Since December 1, 2007 including Siemens VDO Equity and Debt Markets Relations Fact Book FY 2008 5 / © Continental AG Continental at a Glance Continental Corporation Worldwide Status: December 2008 Equity and Debt Markets Relations Fact Book FY 2008 6 / © Continental AG Continental at a Glance Development of Consolidated Sales by Region 24.2 (€ billion) 4% 10% 19% 16.6 Other Countries 14.9 13.8 3% 8% 12.6 3% Asia 3% 7% 21% 36% 7% 2% 21% 7% 20% NAFTA Region 20% 37% 37% Rest of Europe 36% 38% Germany 31% 31% 33% 34% 32% 2004 2005 2006 2007* 2008 * Since December 2007 incl. Siemens VDO Equity and Debt Markets Relations Fact Book FY 2008 7 / © Continental AG Continental at a Glance Development of Consolidated Sales by Division (€ billion) 24.2 12% ContiTech 6% 16.6 Commercial Vehicle 14.9 21% Tires 13.8 18% Passenger and Light 12.6 Truck Tires 19% 9% 20% 21% Automotive Systems** 16% 10% 10% 12% 29% Chassis & Safety 31% 32% 16% 33% Powertrain 28% 40% 24% Interior 39% 38% 7% 9% 2004 2005 2006 2007* 2008 * Since December 2007 incl. Siemens VDO ** Until 2006 Equity and Debt Markets Relations Fact Book FY 2008 8 / © Continental AG Continental at a Glance Number of Employees by Region at YE 2008 151,654 139,155 5% 12% 5% 13% 17% Other Countries 85,224 16% 80,586 79,849 Asia 4% 5% 5% 32% 10% 11% NAFTA Region 10% 33% 15% 15% 17% Rest of Europe 32% 31% 32% Germany 34% 33% 39% 39% 35% 2004 2005 2006 2007* 2008 * Since December 2007 incl. Siemens VDO Equity and Debt Markets Relations Fact Book FY 2008 9 / © Continental AG Continental at a Glance Number of Employees by Division at YE 2008 151,654 139,155 16% ContiTech 16% 6% 6% Commercial Vehicle 17% Tires 85,224 80,586 79,849 19% Passenger and Light Truck Tires 18% 26% Automotive Systems** 30% 28% 19% 10% 10% Chassis & Safety 13% 21% 29% 18% 31% 29% Powertrain 35% 22% 22% Interior 28% 31% 2004 2005 2006 2007* 2008 * Since December 2007 incl. Siemens VDO ** Until 2006 Equity and Debt Markets Relations Fact Book FY 2008 10 / © Continental AG II. Continental Strategy Equity and Debt Markets Relations Fact Book FY 2008 11 / © Continental AG Continental Strategy Systematic Entrepreneurial Approach Environment Safety Increasing supplier Leading share of value chain market position Growth in electronics – 85% through suppliers Sales Cost non-OE conscious- > 40% Growth in ness difficult markets Partnership Globalization Value with creation customers Information Affordable Cars Equity and Debt Markets Relations Fact Book FY 2008 12 / © Continental AG Continental Strategy Megatrend Environment: Key Drivers for Zero Emissions Equity and Debt Markets Relations Fact Book FY 2008 13 / © Continental AG Continental Strategy EU, NHTSA and ECCJ Initiatives – Towards Cleaner Mobility EU* USA** Japan*** EU target to reduce CO2 NHTSA targets to improve ECCJ targets to improve emissions by 2012 to 120 CAFE standards by 40% in fuel efficiency standards by g/km (currently 160 g/km) 2020: 29% in 2015: Long term target to reduce Increase CAFE from 25 mpg Increase average level of CO2 emissions to 95 g/km to 35 mpg fuel efficiency from by 2020 Targets are equivalent to 13.0 km/l to 16.8 km/l EU proposes requirements reduce CO2 from 219 g/km Targets are equivalent to on tires by 2012: to 156 g/km reduce CO2 from 179 g/km lower rolling resistance/ to 138 g/km wet braking performance mandatory fitment with TPMS for passenger cars**** Emerging markets likely to follow Europe/USA/Japan on fuel consumption standards * refer to proposals of the EU commission 12/2007 and the “New car safety package” proposal of the EU commission 05/2008; press release EU commission 03/2009 ** refer to the US Senate Committee on Commerce, Science and Transportation, press release 12/2007 *** refer to the Transport Division of the Council of Transport Policy 02/2007 **** EU parliament already voted for mandatory fitment in March 2009; press release EU commission March 10, 2009; VDA release March 13, 2009 Equity and Debt Markets Relations Fact Book FY 2008 14 / © Continental AG Continental Strategy Reduction of CO2 Emissions*: Solutions by Continental Clean Diesel (SCR**) 20-24% Continental offers a broad range of technologies to reduce CO2 Diesel direct injection 18-22% emissions Hybrid electric vehicle 5-20% Continental products currently in series production are capable to Gasoline direct injection 5-15% reduce CO2 emissions already by about 26 g/km Telematics, ACC, ADAS 5% Europe and US: huge potential by Energy management (AES***) 5% penetrating fuel direct injection systems Tires (rolling resistance, TPMS) 2-5% Future potential from turbocharger and Telematics technology Powertrain (DCT) 4% Continental is among top 3 suppliers Transmission (POD****) 3% in the world for CO2 reducing technologies Energy management (POD****) 1-2% Brake Systems 1-2% * Saving potential compared with gasoline port fuel injection Euro 4 ** Selective catalytic reduction *** Advanced Energy Supply **** Power-on-demand Equity and Debt Markets Relations Fact Book FY 2008 15 / © Continental AG Continental Strategy Megatrend Safety: Development of Road Safety in Europe Evolution 1990-2010 EU 25 road fatalities 70,90070,300 66,500 61,300 59,60059,000 56,400 55,500 55,200 54,100 52,200 50,40049,700 46,700 50,000 43,400 41,700 46,300 39,500 42,900 39,700 36,700 34,000 31,500 29,200 27,000 25,000 EU fatalities 2010 objective: 25,000 lives to save 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Source: CARE (EU road accident database); National data Equity and Debt Markets Relations Fact Book FY 2008 16 / © Continental AG Continental Strategy EU and NHTSA Initiatives – Towards Safer Mobility EU* USA** ESC likely to become mandatory by NHTSA: 2011 on passenger cars and light ESC mandatory for all cars sold in vehicles and also heavy vehicles*** the US / penetration rate Advanced driver assistant systems likely to become mandatory 2009: 55% 2010: 75% 2011: 95% Emergency brake system, lane de- ture warning for commercial vehicles by 2013*** Brake assistant for light vehicles by 2009 Investigation on legislation for mandatory equipment of E-call in EU Emerging markets likely to follow Europe/USA on ESC regulation * Refer to the “New car safety package” proposal of the EU commission 05/2008 ** Refer to Federal Motor Vehicle Safety Standard No.