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Page 1: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

2018 Fact BookInvestor Presentation

www.continental-corporation.comM A I N PA R T N E R

Page 2: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Contents

I. Continental at a Glance

Title Page

Disclaimer 8

More than 145 Years of Progress and Achievement 9

Continental Corporation – Sales, EBIT and Net Income 9

Continental No. 3 in Worldwide Supplier Ranking 10

Executive Board 10

Megatrends in the Automotive Industry 11

A Leading Global Supplier for Key Automotive Electronics Applications 11

A Leading Global Supplier of Tire and Non-Tire Rubber Products 12

Sales by Market 12

EBITDA by Group and Corporation 13

Consolidated Sales 13

Number of Employees 14

II. Continental Strategy

Title Page

Corporate Strategy at a Glance 15

Transformation of Existing Organization – Holding Structure 15

Sustainable Value Creation 16

Cost Consciousness – Production in Best-Cost Countries 16

Balanced Distribution of Sales 17

Top Position for Growing Automotive Technologies 17

Continental Corporation Worldwide 18

Sales OE Automotive/Non-OE Automotive 18

Technological Balance 19

The Same Values Worldwide for a Shared Corporate Culture 19

© Continental AG 2018 Fact Book | 1

Page 3: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Contents

III. Automotive Trends

Title Page

The Most Digitalized Portfolio in The Supplier Sector 20

Automotive Trends: Automated Driving

Road Traffic Deaths per 100,000 Inhabitants by Region 21

History and Roadmap for Accident-Free Driving 21

Outlook 2025 - Approaching Automated Driving: Three-Layer Model 22

Estimated Market Development 22

ADAS Sensors per Car 23

Function and Sensor Scenarios 23

Self Driving Car Project CUbE 24

Automotive Trends: Holistic Connectivity

Information Management – Inside the Vehicle and Beyond 24

Product Highlights for Intelligent Mobility 25

Portfolio Extension towards Systems and Services 25

Holistic Connectivity Car 26

From Specific ECU Architecture to High Performance Computing 26

Central Processing Unit in a Server-based Architecture 27

IV. Sustainability at Continental

Title Page

Sustainability Governance 28

Our Key Policies and Guidelines 28

Quality First – Reliable Products by Continental 29

Innovative Products – Sustainable Mobility: Clean, Safe & Affordable 29

Environmental Management: Reduction of Inputs and Outputs until 2020 30

Human Relations Strategy to Enable Business 30

Employee Management: Key Indicators 31

Human Rights: Clear Expectations at Continental 31

Supply Chain Management 32

Diversification of Sourcing: Rubber from Dandelions 32

Social Responsibility: Contributing to a Variety of Initiatives, Activities and Projects

Worldwide

33

Ratings and Indexes 33

Continental’s Memberships 34

© Continental AG 2018 Fact Book | 2

Page 4: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Contents

V. Corporate Governance

Title Page

Two-Tier Board System – Corporate Bodies 35

Executive Board of Continental AG 35

Remuneration of an Executive Board member 36

Remuneration of a Supervisory Board member 36

DVFA Scorecard / German Corporate Governance Code 37

VI. Continental Corporation

Title Page

Key Consolidated Figures 38

Sales and Adjusted EBIT by Quarter 38

Key Historical Credit Metrics 39

Net Indebtedness and Gearing Ratio 39

Gross Indebtedness by Source at YE 2018 (€ mn) 40

Maturities for Bonds (€ mn) 40

Purchasing – Production Materials 2018 41

VII. Market Data

Title Page

Installation Rates of Keyless Entry Systems 42

Installation Rates of Multimedia Systems 42

Sensors per car of Advanced Driver Assistance Systems 43

Rising Volumes of Head-Up Displays 43

Production of Passenger Cars and Light Commercial Vehicles (<6t) 44

Production of Medium and Heavy Commercial Vehicles (>6t) 44

Replacement Tires – Passenger Cars and Light Commercial Vehicles (<6t) 45

Replacement Tires – Medium and Heavy Commercial Vehicles (>6t) 45

© Continental AG 2018 Fact Book | 3

Page 5: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Contents

VIII.1. Automotive Group – Chassis & Safety Division

Title Page

Business Units and Key Products 51

Locations Worldwide 51

Key Figures 52

Sales by Market 52

Market-Specific Initiatives – Towards Safer Mobility (1) 53

Market-Specific Initiatives – Towards Safer Mobility (2) 53

Global Development of Active Safety Regulations 54

Global Development of Active Safety Regulations and Ratings 54

NCAP Roadmap 55

Market Position Electronic Brake Systems in 2018 55

Market Position for Foundation Brake Systems in 2018 56

Market Position for Actuation in 2018 56

Market Position for Airbag Electronics in 2018 57

Market Position for Advanced Driver Assistance Systems in 2018 57

VIII. Automotive Group

Title Page

Key Figures 46

Sales and Adjusted EBIT by Division 47

Sales by Market 47

Order Intake (LTS) in the Automotive Group of Around €40 bn in 2018 48

Order Intake Well Balanced 48

Digitalization Causes Sustained High R&D and Capex 49

Order Intake Drives Sustainable Growth 49

Production of Passenger Cars and Light Trucks (<6t) 50

© Continental AG 2018 Fact Book | 4

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Contents

VIII.3. Automotive Group – Interior Division

Title Page

Business Units and Key Products 62

Locations Worldwide 63

Key Figures 63

Sales by Market 64

Examples of Market-Specific Initiatives and Projects 64

Market Position for Body & Security in 2018 65

Market Position for Instrumentation & Driver HMI in 2018 65

Market Position for Infotainment & Connectivity in 2018 66

Market Position for Commercial Vehicles in 2018 66

VIII.2. Automotive Group – Powertrain Division

Title Page

Business Units and Key Products until December 31, 2018 58

New Powertrain Reporting Structure Starting January 1, 2019 59

Locations Worldwide 59

Key Figures 60

Sales by Market 60

Regulations to reduce CO2 Emissions in New Vehicle Fleets 61

New Management Structure 61

© Continental AG 2018 Fact Book | 5

Page 7: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Contents

IX.1. Rubber Group – Tire Division

Title Page

Business Units and Tire Brands 74

Key Figures 74

Sales by Markets 75

Winter Tire Regulations 75

Tire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil 76

Tire Labeling Initiatives in Gulf Countries and China 76

Market Share for Passenger and Light Truck Tires in 2018 77

Market Share for Truck Tires in 2018 77

Continental Worldwide PLT Production in 2018 78

Continental European PLT Production in 2018 78

Continental Worldwide Truck Tire Production in 2018 79

Cost of Labor at Continental Manufacturing Sites 79

Product Mix Improvement 80

Passenger and Light Truck Tires: Unit Sales 2013 – 2018 80

Commercial Vehicle Tires: Unit Sales 2013 – 2018 81

IX. Rubber Group

Title Page

Key Figures 67

Sales and Adjusted EBIT by Division 68

Sales by Market 68

Opportunities and Challenges – Rising Demand vs. Rather Stable Tire Capex 69

Growth Opportunities – Improving Tire Mix due to rising SUV & Pickup Share 69

Additional Tire Production Capacity of around 37mn Units by 2020/21 70

Update on 2025 Strategy 70

Balanced Global Manufacturing Footprint 71

Strategy 2025: Globalize Growth (mn units) 71

Relevant Market and Growth Opportunities for ContiTech Products 72

Strong Track Record of Acquiring and Integrating Operations 72

Raw Material Prices 73

© Continental AG 2018 Fact Book | 6

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Contents

X. Share and Bond Information

Title Page

Share Data / ADR Data 86

Share Price Development vs. Major Stock Indexes 86

Common Stock 87

Shareholder Structure 87

Bond Data 88

Development of the Bonds 88

Earnings and Dividend per Share; Payout Ratio 89

Development of Continental’s Credit Rating 89

10 Year Financial Overview 90

XI. Glossary

Title Page

Financial Glossary 91

Product and Division Glossary 91

Contact 92

Financial Calendar 92

IX.2. Rubber Group – ContiTech Division

Title Page

Business Units and Key Products 82

Forming a Global Player in Rubber and Plastics Technologies 82

Sales Distribution by Business Unit 2018 83

Locations Worldwide 83

Key Figures 84

Sales by Market 84

Costumer and Competence Fields 85

© Continental AG 2018 Fact Book | 7

Page 9: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

Disclaimer

› This presentation has been prepared by Continental Aktiengesellschaft and includes information available to us as of March 7, 2019. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.

› Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation.

› This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic as of the date they are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.

› All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data are neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or market shares of Continental and any of the participants in any market.

› Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and percentages.

› Note: Due to the application of the modified retrospective approach during first time adoption of IFRS 9, Financial Instruments, and IFRS 15, Revenues from Contracts with Customers, as at January 1, 2018, all the figures from comparative periods are shown unadjusted.

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

4246678691

3835

© Continental AG 2018 Fact Book | 8

Page 10: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

I. Continental at a GlanceMore than 145 Years of Progress and Achievement

Merger with major companies of the German rubber industry to form ContinentalGummi-Werke AG.

Acquisition of a US company’s Automotive Brake & Chassis unit, the core of which is Alfred Teves GmbH in Frankfurt.

Continental-Caoutchouc- and Gutta-Percha Compagnie is founded in Hanover, Germany.

Continental expands its tire operations by integrating Uniroyal, Semperit, General Tire and Barum.

Continental reinforces its activities by acquiring Temic, the international electronics specialist.

Continental acquires Siemens VDO Automotive AG and advances to among the top five suppliers in the automotive industry worldwide.

Continental expands its activities in telematics and other fields by acquiring the automotive electronics business from Motorola.

Acquiring Phoenix further specializes ContiTech in the field of rubber and plastics technology.

Continental acquires a majority interest in the Slovak company Continental Matador Rubber s.r.o.

Continental acquires Parker Hannifin’s automotive air conditioning business, the conveyor belt producer Legg Company and the conveyor belt activities of Metso.

Continental intensifies its operations as a complete system supplier for exhaust after-treatment by acquiring Emitec.

Continental strengthens its position in the fleet management service business by acquiring Zonar.

Continental reinforces ContiTech by acquiring Hornschuch.

Continental acquires the Singapore-based mobility intelligence provider Quantum Inventions.

Continental strengthens its position in rubber and plastic technology by acquiring Veyance Technologies.

Continental expands software and systems expertise through the acquisition of Elektrobit.

Continental reinforces its activities by acquiring the Hi-Res 3D Flash LIDAR business from Advanced Scientific Concepts.

Continental expands its cyber security expertise through the acquisition of Argus Cyber Security.Continental reinforces the

Tire division by acquiring Hoosier.

Continental expands its expertise in vehicle antennas by acquiring Kathrein Automotive GmbH.

Continental acquires Anti-Vibration Systems (AVS) to strengthen its presence in the anti-vibration technology and noise isolation sector.

Continental expands its Australian tire sales network through the acquisition of Kmart Tyre and Auto Service chain (KTAS).

1871

1929

1979198519871993 1998

2001

2004

2006 200720122013

2015

2014 2016 2017

2018

I. Continental at a GlanceContinental Corporation – Sales, EBIT and Net Income (NIAT)

1Net income attributable to the shareholders of the parent, from 1998 until 2003 US GAAP / from 2004 onwards IFRS.2Siemens VDO incorporated starting December 1, 2007.IAS 19 (rev. 2011) applied starting 2013. The 2012 figures have been restated accordingly. IFRS 9 and IFRS 15 applied starting 2018.

11,534 12,597 13,837 14,887 16,619

24,239

20,096

26,047

30,505 32,736 33,331 34,506

39,232 40,549 44,009 44,404

855 1,157 1,507 1,602 1,676

-296 -1,040

1,935 2,597 3,186 3,264 3,3454,116 4,096 4,562 4,028

314 716 930 982 1,021

-1,124 -1,649

576 1,242 1,905 1,923 2,375 2,727 2,802 2,985 2,897

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US GAAP IFRS

Sales

EBIT

NIAT1

2

€ mn

© Continental AG 2018 Fact Book | 9

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0

10

20

30

40

50

RobertBosch

Denso Continental Magna ZF AisinSeiki

Bridgestone HyundaiMobis

Michelin Valeo

I. Continental at a GlanceContinental No. 3 in Worldwide Supplier Ranking

Top 10 Global OEM Suppliers – 2018 Sales (€ bn)

1 2 3 4

1 Robert Bosch only includes Mobility Solutions division.2 Continental not including ContiTech industrial business and other non-OE automotive business.3 ZF excluding Industrial Technology business.4 Bridgestone including Diversified Products.Source: Company filings and estimates. Calendarized to Dec. year-end. Based on average currency exchange rates 2018.

I. Continental at a GlanceExecutive Board Dr. Elmar Degenhart

Chairman of the Executive BoardCorporate Functions:Corporate Communications, Corporate Quality and Environment, Continental Business System

Frank Jourdan Chassis & Safety Division

Helmut MatschiInterior Division

Christian KötzTire Division Corporate Functions: Corporate Purchasing

Dr. Ariane ReinhartCorporate Functions:Human Relations and Director of Labor Relations, Sustainability

Hans-Jürgen DuensingContiTech Division

Wolfgang Schäfer Corporate Functions:Finance, Controlling, Compliance, Law, IT

Nikolai SetzerSpokesman of the Automotive Board, Central Functions Automotive

© Continental AG 2018 Fact Book | 10

Page 12: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

I. Continental at a GlanceMegatrends in the Automotive Industry

Clean –For Clean Power

Intelligent –For Intelligent Driving

Safe –For Safe Mobility

CO2 Fleet Emission Targets 2020/21 (NEDC)2

Road Traffic DeathsNumber of Road Traffic Deaths per 100,000 Inhabitants by Region1

Connectivity

Europe3 95g/kmUSA 119g/kmChina 117g/km

Europe and Russia 9.3Eastern Mediterranean 18.0Americas 15.6Africa 26.6South East Asia 20.7Western Pacific 16.9 Vehicle

Driver andPassenger Devices

Infrastructure

OtherVehicles

2 New European Driving Cycle.3 Mandatory for 95% of the OEMs’ fleets.Source: ICCT Int. Council of Clean Transportation, Global Passenger Vehicle FE/GHG regulations (1/2019).

1 Data based on framework created by the World Health Organization (WHO) for estimating road traffic mortality.Source: Global Status Report on Road Safety, WHO 2018.

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

› Actuation› Advanced driver assistance systems (ADAS)› Airbag electronics› Electronic brake systems (EBS)› Foundation brake systems

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

› Body and security products› Commercial vehicle interiors› Device connectivity and telematics units› Instrumentation, displays

and human machine interfaces› Intelligent transport systems

Chassis & Safety

Sales 2018 €9,588 mn% of total 21%Adj. EBIT1 €785 mnAdj. EBIT margin 8.2%

Powertrain Interior

Sales 2018 €7,741 mn% of total 17%Adj. EBIT1 €202 mnAdj. EBIT margin 2.6%

Sales 2018 €9,707 mn% of total 22%Adj. EBIT1 €899 mnAdj. EBIT margin 9.3%

ADAS installation rate worldwide (sensors per car)2 Market for automotive electronics3 (USD bn)

1 Before amortization of intangibles from PPA, consolidation and special effects.2 Average amount of ADAS sensors including sensing rear/surround view cameras but w/o parking assist functions based on ultrasonic technology.3 Source: Strategy Analytics: Automotive Electronics System Demand, Oct 2018.

CAGR 8%2862018

4132023E

CAGR 13%1.52018

2.82023E

© Continental AG 2018 Fact Book | 11

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I. Continental at a GlanceA Leading Global Supplier of Tire and Non-Tire Rubber Products

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

Tires ContiTech› Air springs for railway, trucks and buses› Automotive hoses and hose lines› Automotive interior trim› Conveyor belts› Elastomer coatings› Industrial hoses› Multiple V-ribbed belts and timing belts› Vibration absorbers

Sales 2018 €6,345 mn% of total 14%Adj. EBIT1 €473 mnAdj. EBIT margin 7.6%

Sales breakdown Sales breakdown

Sales 2018 €11,352 mn% of total 26%Adj. EBIT1 €1,900 mnAdj. EBIT margin 16.8%

Passenger & Light Truck Tires Commercial Vehicle Tires

Markets

› EMEA › The Americas › APAC

Products

› Original Equipment› Replacement

› Summer tires, winter tires, high-performance tires

› Original Equipment› Replacement

› Commercial Specialty Tires

72% Non-OE 28% OE 49% Non-OE 51% OE

I. Continental at a GlanceSales by Market

Automotive Group 2018€26,856 mn

Rubber Group 2018€17,603 mn

Corporation 2018€44,404 mn

Germany22%

Europe(excluding Germany)

25%

North America

23%

Asia28%

Other markets2% Germany

17%

Europe(excluding Germany)

36%

North America

27%

Asia14%

Other makets6%

Germany20%

Europe(excluding Germany)

29%

North America

25%

Asia22%

Other markets4%

© Continental AG 2018 Fact Book | 12

Page 14: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

I. Continental at a GlanceEBITDA by Group and Corporation

Automotive Group 2018€3,177 mn

Rubber Group 2018€3,197 mn

Corporation 2018€6,236 mn

Chassis & Safety38%

Powertrain18%

Interior44%

Chassis & Safety19%

Powertrain9%

Interior22%

Tires39%

ContiTech11%

Tires78%

ContiTech22%

I. Continental at a GlanceConsolidated Sales

2014 2015 2016 2017 2018Germany Rest of Europe North America Asia Other markets

2014 2015 2016 2017 2018Chassis & Safety Powertrain Interior Tires ContiTech

by Market by Division€ bn € bn40.5

34.5

39.2 3%

5%

5%21%

20%

20%

26%22%

26%

29%30% 28%

21%23% 21%

40.5

34.5

39.214%

14%

26%

28%26%

20%20%

21%

18%19%

18%

22%22% 21%

14%

26%

21%

17%

22%

44.044.04%

22%

25%

29%

20%

11%

44.44%

22%

25%

29%

20%

14%

26%

22%

17%

21%

44.4

11%

IFRS 9 and IFRS 15 applied starting 2018.

© Continental AG 2018 Fact Book | 13

Page 15: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

I. Continental at a GlanceNumber of Employees

2014 2015 2016 2017 2018Germany Rest of Europe North America Asia Other markets

2014 2015 2016 2017 2018Chassis & Safety Powertrain Interior Tires ContiTech

189,168207,899

220,137

5%5%

4%4%

19%19%

19%19%

16%18% 19%

19%

32% 31% 32% 32%

28% 27% 26% 26%

18%21%

19%20%

25% 24%24%

23%

19% 19% 20% 20%

18% 17% 17% 17%

20% 19% 20% 20%

by Market by Division235,473

189,168207,899

220,137235,4734%

20%

18%

32%

26%

243,226

19%

23%

20%

18%

20%

243,226

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI. 9Continental StrategyII. 15Automotive TrendsIII. 20

IV. 28

VII. 42VIII. 46IX. 67X. 86XI. 91

Topics

Corporate GovernanceV.Continental CorporationVI. 38

35

© Continental AG 2018 Fact Book | 14

Page 16: uploads4.craft.co · Contents I. Continental at a Glance Title Page Disclaimer 8 More than 145 Years of Progress and Achievement 9 Continental Corporation –Sales, EBIT and Net Income

II. Continental StrategyCorporate Strategy at a GlanceHoshin Kanri matrix

Vision

Growth forces

Growth driven by our innovative software for systems solutions

Customers

Your mobility. Your freedom.Our signature.

ProcessesThe leading quality and technology company in our industries

EmployeesPerceived as most attractive and most progressive employer

Long-term goals of business units, divisions, corporate functions

Goals

Projects and measures for achieving goals

Initiatives

Monitoring of implementation of

initiatives

7 strategic dimensions

› Value creation› Regional sales balance› Top market position› In the market for the market

› Balanced customerportfolio

› Technological balance› Great people culture

Metrics

Corporate strategy

II. Continental StrategyTransformation of Existing Organization – Holding Structure

From 2020 onwards

Automotive Technologies

Rubber Technologies

PowertrainTechnologies

Continental Group

› Ensure long-term competitiveness andincrease strategic flexibility

› Maintain a strong network with commonvalues

› Maintain focus on most efficient valuecreation

› Take into account interests of allstakeholders

Autonomous Mobility and

Safety

Vehicle Networking

and Information

Tires ContiTech VitescoTechnologies

© Continental AG 2018 Fact Book | 15

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II. Continental Strategy – Value CreationSustainable Value Creation

19,7

67

19,9

83

20,1

06

20,4

53

20,9

78

21,4

01

21,8

86

22,1

72

22,3

97

22,8

11

23,2

56

23,6

41

21.1% 21.2%18.9% 20.0% 20.0% 19.0%

20.6% 20.6% 19.8% 19.4%18.3% 17.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018

Trailing OA (€ mn) Trailing ROCE

1 Trailing operating assets are calculated as assets for the last twelve months.2 Trailing ROCE is calculated as reported EBIT for the last twelve months divided by trailing operating assets.

1 2

II. Continental Strategy – Value CreationCost Consciousness – Production in Best-Cost Countries

68% 61%

97%

52% 52%72% 64%

93%

54% 51%

Rest of world

2015 20181 Based on sales.2 Based on units.

35%26%

43%

75%

39%40% 36%46%

78%

36%

Europe

Chassis & Safety1 ContiTech1Interior1 Tires2Powertrain1

Chassis & Safety1 ContiTech1Interior1 Tires2Powertrain1

© Continental AG 2018 Fact Book | 16

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II. Continental Strategy – Regional Sales BalanceBalanced Distribution of Sales

2018 Target(medium and long term)

≤ 45%Europeand other countries22% Asia

The Americas28%

Europeand other countries 50% ≥ 30%

≥ 25%

II. Continental Strategy – Top Market PositionTop Position for Growing Automotive Technologies

› Our Goal: To be among the three leading suppliers in terms of customer focus, quality and market share in the long term in all relevant markets.

› Chassis & Safety › Among the top three for Electronic Brake Systems, Foundation Brake Systems, Actuation, Airbag Electronics and Advanced Driver Assistance Systems worldwide

› Powertrain › One of the world‘s leading powertrain suppliers

› Interior › Among the top three for Body & Security, Instrumentation & Driver HMI, Infotainment & Connectivity and Commercial Vehicles worldwide

› Tires › Number four in the world, while we are also in top positions in individual segments and markets in this area

› ContiTech › Global leader in rubber and plastics technologies

› How our divisions are positioned:

© Continental AG 2018 Fact Book | 17

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

Locations are defined as the postal addresses of companies under our control.

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

98%

99%

90%

28%

51%

Chassis & Safety

Powertrain

Interior

Tires

ContiTech

OE Non-OE

2018: Sales OE Automotive/Non-OE Automotive by Division

2018

Other sectors and end customers28%

Original equipment manufacturers (OEMs)72%

~40%

~60%

Target(medium and long term)

© Continental AG 2018 Fact Book | 18

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II. Continental Strategy – Technological BalanceTechnological Balance

Compound annual growth rate

Introduction Growth Maturity Saturation

≥ 5 - 10% 0 - 10% ≤ 0% Time

Technology life cycle Technology portfolio share of sales in %

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

FreedomTo Act Trust

PassionTo Win

For One Another

© Continental AG 2018 Fact Book | 19

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Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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

Competitor 10

Competitor 9

Competitor 8

Competitor 7

Competitor 6

Competitor 5

Competitor 4

Competitor 3

Competitor 2

Competitor 1

ContinentalAutomotive

Today: Electronics/Sensors/Software products as share of sales

III. Automotive TrendsThe Most Digitalized Portfolio in the Supplier Sector1

Source: Company filings and Continental estimates.1 Suppliers >€3 bn sales.

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III. Automotive Trends: Automated DrivingRoad Traffic Deaths per 100,000 Inhabitants by Region1

1 Source: World Health Organization (WHO) – Global Status Report on Road Safety 2018. Road traffic fatality rates per 100,000 population by WHO region.

WesternPacific

Africa South-East Asia

Eastern Mediterranean

Europe and Russia

Americas

millionA furtherare injured

millionpeople

Over

die in road accidents every year

per 100,000 population

26.6

18.0

20.715.6

9.3

16.9

1.35

III. Automotive Trends: Automated DrivingHistory and Roadmap for Accident-Free Driving

Source: Federal Statistics Office, Germany (Destatis);ABS = Anti-lock Brake System, ESC = Electronic Stability Control , BA = Brake Assist, ACC = Adaptive Cruise Control, LDW = Lane Departure Warning, AEB = Autonomous Emergency Braking.

0

5,000

10,000

15,000

20,000

25,000

1953 1963 1973 1983 1993 2003 2013

3,220

1973: Safety Seat Belt

1978: ABS1982: Airbag

1985: Front Passenger Airbag

1995/96: ESC, BA, Euro NCAP1998: ACC 2001: LDW

2006: AEB

Traffic Fatalities and Introduction of Safety Applications in Germany 1953 – 2018

2018

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III. Automotive Trends: Automated DrivingOutlook 2025 – Approaching Automated Driving: Three-Layer Model

1 Source: Continental estimates.

Market for Automated Driving ~€30 bn1 by 2025

Recent additions to the portfolio (incl. cooperations and JVs)

Components

System

Environmental Model

~€21 bn1

~€9 bn1

Sensors

ElectronicsSoftwareIntegration

BMW platformNTT Docomo

Baidu

easyMile

HUAWEI

solid-state high resolution lidar

ADCU

NVIDIA

III. Automotive Trends: Automated DrivingEstimated Market Development

Passenger Car & Light Truck production (mn units)

0

20

40

60

80

100

120

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

1 Wide range of functionalities from “Base” to “Premium”.

1

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III. Automotive Trends: Automated DrivingADAS Sensors per Car

Short-rangeRadar

Surround View

Ultrasonicsensors3

Camera

3D Flash Lidar

Long-rangeRadar

Sensors per car

Level 4/5Level 3Level 1/2

441

401

>352

24-322

18-222

BMW

GM

1 Source: https://www.bmwgroup.com/content/dam/bmw-group-websites/bmwgroup_com/ir/technologie_workshops/Technology_Workshops_Autonomous_Driving.pdf https://www.gm.com/content/dam/gm/events/docs/5265893-685163-Chartset-11-30-2017.

2 Continental estimates, depending on customers and future regulatory requirements.3 Ultrasonic sensors not in Continental portfolio.

Continental

III. Automotive Trends: Automated DrivingFunction and Sensor Scenarios1

› Autonomous emergency braking (incl. intersections)

› Adaptive cruise control(Anticipatory and cooperative ACC)

› Lane keeping / change assist› Traffic jam assist› Back-up assist› Parking assist› Remote parking

L1/2Additionally to L2:› Cruising chauffeur› Traffic jam chauffeur

L3Conditionally automated

Additionally to L3:› Urban chauffeur (e.g. Robo Cabs)› Cruising chauffeur (Enhanced)› Traffic jam chauffeur (Enhanced)› Automated parking

(e.g. Trained parking, Valet parking)

Highly / Fully automatedAssisted & partially automated

5-7x Camera6x Short range radar2-3x Long range radar4-7x High resolution lidar1x Surround view system

(4 cameras; 1x ECU optional)

12x Ultrasonic sensors2

2-3x ADCU3

1x Camera4x Short range radar1x Long range radar

1x Surround view system(4 cameras + 1 ECU)

or 1x Rear view system

8-12x Ultrasonic sensors2

1x ADCU3 (optional)

2-5x Camera4-6x Short range radar1-3x Long range radar1-2x High resolution lidar1x Surround view system

(4 cameras; 1x ECU optional)

12x Ultrasonic sensors2

1-2x ADCU3

2 Ultrasonic sensors not in Continental portfolio.

L4/5

1 Depending on customers and future regulatory requirements. 3 The Assisted & Automated Driving Control Unit.

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III. Automotive Trends: Automated DrivingSelf-Driving Car Project CUbE

We make Driverless Mobility become Reality - scalable from single components to complex vehicle systems.

Driving Intelligence› Situation analysis› Decision-making› Low-level vehicle control› ADCU

Seat Material Tailored seat surfaces› Resilient › Easy to clean› Comfortable

LocalizationRobust localization in urban areas› Radar› Wireless infrastructure beacons

Radar SensingLong-range sensor Short-range sensor› Object detection› Barrier detection› 4 sensors for 360° view

Camera Sensing› Object detection› Barrier detection› Front sensor cover drive path› Surround View

Drive Module› Continental

Axle DriveTires› Energy efficiency

Lidar SensingSolid-state flash lidar› Object detection› Barrier detection› 4 sensors for 360° view

Connectivity› V2X › App for Ride Hailing etc.

Safety› Redundant brake-by-wire system › Passive safety system for

passengers

Steering› Redundant Steering

System by CNXMotion

III. Automotive Trends: Holistic ConnectivityInformation Management – Inside the Vehicle and Beyond

With our holistic, intuitive and ergonomic human-machine interface, we capture commands, prioritize and present information.

Driver & Passengers Devices Infrastructure Other Vehicles We add new functions as wellas value-adding

mobility servicesby providing

a holistic connection to

the outside world.

Vehicle

We manageand optimize the information flow

throughcost-competitive

systems integration.

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III. Automotive Trends: Holistic ConnectivityProduct Highlights for Intelligent Mobility

Cost Competitive Systems SolutionsWe integrate components, functions and services into cost competitive systems serving our customers including the aftermarket.

We integrate

Holistic Human-Machine InterfaceBy knowing the needs of drivers and passengers we provide the expertise for superior comfort, ergonomics, and intuitive ease-of-use.

We inform

Holistic ConnectivityWe provide technologies for vehicle networking to connect drivers and passengers with vehicles, the cloud and the infrastructure. From products to services, protected by advanced Cyber Security solutions.

We connect

III. Automotive Trends: Holistic ConnectivityPortfolio Extension towards Systems and Services

Investment and Cooperation for Proven Business and Mobility Services

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III. Automotive Trends: Holistic ConnectivityHolistic Connectivity Car

>30 million1

connected vehicles by

2018: >50%of produced vehicles are

connected

2020: >250 millionof the vehicles on the road will be

connected

1 Since 1996.

III. Automotive Trends: Holistic ConnectivityFrom Specific ECU Architecture to High Performance Computing

State of the Art

ECU Architecture

2025

Server Architecturewith Zone ECUs

2030

Standardized Server Architecture

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III. Automotive Trends: Holistic ConnectivityCentral Processing Unit in a Server-based Architecture

1 I/O = Input/Output.

Automated driving

Electrification

Connectivity

New mobility

010011000101010011Digitalization

IoTInternet of Things

SW defined carMaster for Cyber Security, SW over-the-air updates and vehicle diagnosis.Elektrobit SW management and Argus cyber security solutions are essential elements.

› Increasing number of functions and higher performance require new approaches in electric and electronic architecture.

› Move towards structures known from IT industry supporting functions in vehicle and cloud with high flexibility.

› The In-Vehicle Server is a cornerstone of modern vehicle architectures.

› The In-Vehicle Server offers a HW/SW platform realizing individual use cases:

High performance computing unit. Predefined appli-cations as well as new 3rd party SW and service inte-gration.

Redistribution of application SW. Separation of I/O1

logic from appli-cation function + application fusion across domains.

In-vehicle communication. Increasing demand of in-vehicle network bandwidth.

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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IV. Sustainability at ContinentalSustainability Governance

Sustainability Committee

Executive Board

Interdisciplinary and cross-divisional

Steering and implementation Decision-making

Dr. Ariane Reinhart (Executive Board member responsible for Human Relations and Sustainability)

Wolfgang Schäfer (CFO) Corporate sustainability department Relevant business areas and corporate functions Relevant corporate functions Other experts (on request)

Updated sustainability strategyCurrent focus topics Strategic planning process

2018 2019 2020+

Timeline for strategy development:

Corporate sustainability department

Strategic coordination

Business areas/ corporate functions

Our ambition: Continental creates meaningful positive impact

IV. Sustainability at ContinentalOur Key Policies and Guidelines

Environmental Responsibility

Employees and Society

Environment, Safety and Health (ESH) Policy – defines worldwide principles for safety, health and environmental protection

Code of Conduct – ethical standards and requirements concerning employee behavior

Business Partner Code of Conduct – ethical standards and requirements which we expect our business partners to adhere to

Corporate Governance Policy – to foster the responsible management of the company focused on value creation

Quality Policy – aims at customer satisfaction as an overarching goal

Risk Report – overview of our Risk Management

OUR BASICS Our Corporate Guidelines

Corporate Governance

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IV. Sustainability at ContinentalQuality First – Reliable Products by Continental

Status Quo: Certified quality management systems according to ISO 9001 o.s.

› Our group-wide global quality policy aims at customer satisfaction as an overarching goal

› Operationalized by five strategic initiatives with leadership culture as a foundation

› Global quality management organization directly reporting to CEO to implement policy

~90%

total workforce covered by certification

As at Dec. 31, 2018

IV. Sustainability at ContinentalInnovative Products – Sustainable Mobility: Clean, Safe & Affordable

Consolidated sales of products in 2018that reduce energy consumption and / or emissions

› Virtual A-Pillar: By pairing its interior camera and integrated OLED displays in the vehicle’s A-pillar, forward blind spots are eliminated.

› Eco Tires: EcoContact 6 delivers maximum fuel efficiency and optimized grip thanks to improved component geometry and efficient silica distribution.

› Super Clean Electrified Diesel: By making various modifications to a Euro 6 Diesel standard vehicle, Continental engineers were able to massively reduce real driving emissions (NOx and CO2).

› “People’s-Hybrid”: The hybrid with 48-volt technology uses up to 21% less fuel, is relatively affordable and is usable in all vehicle classes.

› Digital Air Spring System: This revolutionary technology allows the driver’s cab to be regulated electronically, thus reducing fuel consumption.

~40%

› Examples:

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IV. Sustainability at ContinentalEnvironmental Management:Reduction of Inputs and Outputs until 2020› Global ESH policy managed by

particular ESH organization

› Commitment to environmental protection, especially to the reduction of resource use and climate protection

› Strategy 2020: to cut specific inputs and outputs (energy, water, waste and CO2) by 20% compared to 2013 baseline

› ISO 14001 certification covers >80% and ISO 50001 ~50% of our total workforce worldwide

Environmental data1 Unit 20174 20185 ∆ 2017Track record:

∆ 2013

Total energy use2 TWh 9.5 9.9 +4% +29%

Specific energy use2 MWh / € mn 218 223 +2% -3%

Total water demand mn m3 19.8 20.6 +4% +27%

Specific water demand m3 / € mn 456 465 +2% -5%

Total waste generation t 379,992 419,426 +10% +50%

Specific waste generation t / € mn 8.8 9.5 +8% +13%

Thereof: Waste recycled % of total waste 81 78 -3%-p. -6%-p.

Total CO2 emissions (Scope 1+2)3 mn t CO2 3.2 3.3 +4% +31%

Specific CO2 emissions (Scope 1+2)3 t CO2 / € mn 73 74 +1% -2%

1Based on the environmental data system which includes the relevant production and development sites, excluding fleet consumption. Definitions based on Global Reporting Initiative (GRI). Specific data refers to the adjusted sales in the respective year.2Fossil energies as well as electricity and steam.3According to Greenhouse Gas Protocol (Scope 2: location-based) on the basis of energy use reported as well as emission factors of Defra (2016) and IEA (2017).4Data with external limited assurance.5Data with external reasonable assurance.

IV. Sustainability at ContinentalHuman Relations Strategy to Enable Business

› Total workforce of 243,226, thereof 228,922 own employees in 2018 – to grow further

Key achievements in 2018:

› Further development of our strategic workforce planning processes covering 97% of own employees

› Global talent management conferences› Certification of global talent management

process according to ISO 29990› Introduction of Microsoft Office 365 for

digital collaboration› Introduction of digital learning

management platform › Extension of certification for health &

safety management systems (around 2/3 of total workforce are now covered)

Enable Transformation:› Talent Management› Data Management

Industrialize Best Fit› Diversity› Leadership › Flexibility› Learning

Common work is based on: Corporate Values (“BASICS”) & Rules (incl. Code of Conduct)

Core initiatives:

HR to Enable Business

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1 Without apprentices.2 Based on HR data system (covering approx. 97% of employees).3 Executives or higher positions.4 Only own employees.5 Including service to previous company in case of acquisitions. 6 Counted from more than one lost day.7 Without Continental Tires Sales (approx. 2% of total workforce). 8 Data partially with external limited assurance. 9 Data with external reasonable assurance.

IV. Sustainability at ContinentalHuman Relations: Key Indicators

Employee data Unit 20178 20189 ∆ 2017

Total employees (Total workforce)1 Number 235,473 243,226 +3%

Thereof: Own employees (Permanent staff) Number 219,687 228,922 +4%

Thereof: in Germany Number 56,854 59,230 +4%

Outside Germany Number 162,833 169,692 +4%

Total apprentices in Germany Number 2,155 2,180 +1%

Average age of employees2 Years 38.4 38.5 +0.3%

Share of female employees in total workforce2 % 27.2 27.5 +0.3%-p.

Share of female employees in management positions2,3 % 13.4 14.8 +1.4%-p.

Average service to the company2,4,5 Years 9.1 9.1 0%

Fluctuation, unforced4 % 5.7 6.3 +0.6%-p.

Sickness rate4 % 3.2 3.3 +0.1%-p.

Accidents per mn working hours4,6,7 Number 3.2 3.4 +6%

IV. Sustainability at ContinentalHuman Rights: Clear Expectations at Continental

› Freedom of association

› Abolishment of forced labor

› Abolishment of child labor

› Freedom from discrimination

Implementation: › Coordination of work through newly established

human rights expert role› Promotion through internal labor relations

network covering more than 70% of our employees worldwide

› Training of employees on Code of Conduct › Additional specific purchasing requirements for

sustainable natural rubber› Assessment of suppliers via Ecovadis and NQC› (Suspected) violations can be reported to global

compliance hotline

Commitment to human rights and ILO1 Core Labor Standards:

1 International Labor Organization.

Adopted into:

Continental Code of Conduct

Continental Business Partner Code of Conduct

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› Responsible sourcing anchored in our General Purchasing Terms and Conditions

› Business Partner Code of Conduct mandatory for suppliers since 2011

› Dedicated initiatives on natural rubber:› Launch of new policy for Sustainable Natural Rubber

in 2018› Cooperation with GIZ1 on sustainable small-holder

rubber farming› Participant of global industry platform (GPSNR2),

launched by WBCSD3 Tire Industry Project

1 German Society for International Cooperation (Gesellschaft für internationale Zusammenarbeit).2 Global Platform for Sustainable Natural Rubber.3 World Business Council for Sustainable Development.

Supplier Assessment as at Dec. 31, 2018

750 selected suppliers assessed on their sustainability performance via ecovadis and NQC

IV. Sustainability at ContinentalSupply Chain Management

IV. Sustainability at ContinentalDiversification of Sourcing: Rubber from Dandelions

The natural rubber made from dandelion roots has the same quality and performance characteristics as conventional rubber from rubber trees.

The plants can be cultivated in moderate climates, e.g. Northern and Western Europe or North America. Having plantations next to the tire plants in Central Europe makes both economic and ecological sense.

At the end of 2018, Continental opened the “Taraxagum Lab Anklam” research and test laboratory for dandelion rubber to provide a base for future research into the cultivation and processing of dandelions.

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

Benefits:› Reduction in dependency on harvest situations in subtropical regions› Higher flexibility due to (bi-)annual cultivation period› Lower environmental impact due to reduced logistic requirements› Optimal material properties enable first-class products in terms of technology

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

› Joseph von Fraunhofer Prize 2015› GreenTecAward 2014

Funded by the European Union by the operational program of the ERDF during the 2014 - 2020 funding period.

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IV. Sustainability at ContinentalSocial Responsibility: Contributing to a Variety of Initiatives, Activities and Projects Worldwide

› Our activities are based on the corporate values, internal rules and standards as well as local laws.

› We contribute to social activities with partnerships as well as charitable and in-kind donations, and we support volunteering activities at our locations worldwide.

Employees donate € 15,000 to charities in Germany

Employees help renovate schools in Hungary, Mexiko and Romania

Experiencing Europe: Internships for young people in Europe

Continental Youth Safe Driving Program in China

Selected examples of our social activities worldwide:

IV. Sustainability at ContinentalRatings and Indexes

Source: https://www.ecpigroup.com; https://www.cdp.net; https://www.sustainalytics.com; https://www.msci.com; https://www.ecovadis.com/.

› Continental is listed in the following indexes:

› Ratings:

› BBB › Outperformer(73 points)

› Prime (C+) › Climate: Score B› Water: Score B-› Supply Chain: Score A;

Supplier Engagement Leader Board

› Gold Status › 65 /100 › Best 5% of companies

2018 2019201720192019

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IV. Sustainability at ContinentalContinental’s Memberships

Source: www.charta-der-vielfalt.de (German Federal Government Commissioner for Migration, Refugees and Integration); www.luxemburger-deklaration.de; www.globalcompact.de; http://www.wbcsd.org; http://www.erscharter.eu; http://www.weprinciples.org; http://www.snr-i.org/; https://econsense.de/.

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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V. Corporate GovernanceTwo-Tier Board System – Corporate BodiesCorporate bodies of the company

Shareholders’ Meeting

Shareholders exercise their rights of participation and control

ReportsRatifiesElects shareholder representatives

ReportsRatifies

Supervisory Board Executive Board

Chairman’s Committee

Mediation Committee

Audit Committee

Nomination Committee

20 members

10 shareholder representatives 10 employee representatives

Involved in decisions of fundamental significance to the company

8 members

Responsible for managing the company in accordance with the law, the Articles of Incorporation, and the By-Laws of the Supervisory and Executive Boards, while taking into account the resolutions of the Shareholders’ Meeting

Reports

Appoints, monitors and advises

››››

› › › › ›

V. Corporate GovernanceExecutive Board of Continental AG

Dr. Elmar Degenhart Chairman of the Executive BoardBorn in 1959Appointed since 2009 until August 2024

Frank JourdanChassis & Safety DivisionBorn in 1960Appointed since 2013 until March 2024

Helmut Matschi Interior DivisionBorn in 1963Appointed since 2009 until March 2024

Wolfgang SchäferChief Financial OfficerBorn in 1959Appointed since 2010 until December 2024

Dr. Ariane Reinhart Human RelationsBorn in 1969Appointed since 2014 until September 2022

Hans-Jürgen Duensing ContiTech DivisionBorn in 1958Appointed since 2015 until April 2023

Nikolai SetzerSpokesman of the Automotive BoardBorn in 1971Appointed since 2009 until March 2024

Christian KötzTires DivisionBorn in 1970Appointed since 2019 until March 2022

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Target remuneration (100% target achievement)

Maximum remuneration

0

1

2

3

4

5

6

Fixedremuneration

Additionalbenefits

Servicecosts

Performancebonus (immediate

payment: 60%)

Performancebonus

(deferral: 40%)

Long-termincentive

Totalremuneration

€ mn

(Converted into virtual shares.3-year holding period)

(4-year term)

Variable remuneration elements

Minimumremuneration

V. Corporate GovernanceRemuneration of an Executive Board member

1 Average.2 Based on a target bonus (here: €1.167 million), for 100% achievement of defined CVC and ROCE targets, maximum of 150% of the target bonus (including achieving any additional strategic targets as well as any correction of the target achievement of+/- 20% by the Supervisory Board), divided into an immediate payment (60%) and deferral (40%).

3 The possible increase in the value of the deferral is capped at 250% of the initial value. The maximum amount shown relates to the maximum payment in the performance bonus at 150% target achievement.4 Based on achieving average CVC versus planned CVC (max. 200%), multiplied by the degree of achieving the total shareholder return, maximum payment of 200%.

Remuneration of an Executive Board member responsible for a division (example)

1 1 2 2 43

0

25

50

75

100

125

150

175

200

225

Fixed remuneration Additional benefits(meeting fees)

Variableremuneration

Total remuneration

€ thousands

V. Corporate GovernanceRemuneration of a Supervisory Board member

1 Basis for calculation: €90 for each cent of earnings per share over €2, calculated as an average of the last three years.

1

Remuneration of a Supervisory Board member (example)

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› Continental ranks 3 out of 30 in the 2018 DVFA Scorecard survey with 86.55%.

› About the Scorecard for German Corporate Governance:› Corporate Governance (CG) comprises competencies, communication and monitoring on the part of

the decision-making bodies of publicly-traded companies.› The scorecard was designed as a professionally suitable analytical tool for analysts, investors and

companies for evaluation of all relevant factors.› It includes about 50 measures for the comprehensive implementation of Corporate Governance -

separated according to the criteria › CG commitment› shareholder rights› transparency› company management and› auditing.

Source: http://www.ecgi.org/codes/documents/scorecard_d.pdf; http://www.dvfa.de/fileadmin/downloads/Verband/Gremien/Corporate_Governance/Gesamtscore_Methodik_DVFA_Scorecard_for_CG_DAX30_2018.pdf.

V. Corporate GovernanceDVFA Scorecard / German Corporate Governance Code

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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VI. Continental CorporationKey Consolidated Figures€ mn 2016 2017 2018

Sales 40,549.5 44,009.5 44,404.4EBITDA 6,057.4 6,678.9 6,235.7

in % of sales 14.9 15.2 14.0EBIT 4,095.8 4,561.5 4,027.7

in % of sales 10.1 10.4 9.1EBIT adjusted1 4,748.5 4,118.1

in % of sales1 10.8 9.3

Operating assets (average) 20,453.1 22,172.4 23,640.5ROCE 20.0 20.6 17.0

R, D & E expenses (net) 2,811.5 3,103.7 3,209.0in % of sales 6.9 7.1 7.2

Capex2 2,593.0 2,854.4 3,124.4in % of sales 6.4 6.5 7.0

Depreciation and amortization3 1,961.6 2,117.4 2,208.0in % of sales 4.8 4.8 5.0thereof impairment4 58.6 40.2 20.7

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

VI. Continental CorporationSales and Adjusted EBIT1 by Quarter

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

9,851 10,191 9,98410,524

11,000 11,033 10,69311,284 11,013 11,374

10,78811,230

1,164 1,167 1,1041,313

1,059 1,161

772

1,126

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18Sales (€ mn) Adj. EBIT (€ mn)

FY Sales €40,549 mn FY Sales €44,009 mnAdj. EBIT1 €4,749 mn

FY Sales €44,404 mnAdj. EBIT1 €4,118 mn

1

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VI. Continental CorporationKey Historical Credit Metrics

1 Amounts shown may contain rounding differences.2 Adjusted EBITDA as defined in syndicated loan. 3 Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes.4 Includes dividends received, income from equity-accounted and other investments, incl. impairment and reversal of items as well as changes in employee benefits and other provisions and in other assets and liabilities.5 Adjusted EBITDA to net cash interest paid.

(€ mn)1 2014 2015 2016 2017 2018Statement of Cash FlowsAdjusted EBITDA2 5,318 6,094 6,125 6,701 6,190Reported EBITDA 5,134 6,001 6,057 6,679 6,236Net cash interest paid -158 -174 -112 -105 -79Tax paid -775 -1,015 -1,047 -1,122 -861Change in net working capital3 -207 -107 -210 -484 137Other4 175 210 250 253 -456Cash flow arising from operating activities 4,168 4,916 4,938 5,221 4,977Cash flow arising from investing activities -2,153 -3,472 -3,167 -3,468 -3,626 - thereof acquisitions -129 -1,257 -516 -596 -418 - thereof capex in PPE and intangibles -2,110 -2,265 -2,708 -2,951 -3,285Cash flow before financing activities 2,015 1,444 1,771 1,753 1,351Cash flow before acquisitions 2,144 2,701 2,288 2,349 1,769Statement of Financial PositionCash and cash equivalents 3,244 1,622 2,107 1,882 2,761Derivative instruments and interest-bearing investments 364 81 48 161 184Total indebtedness 6,432 5,245 4,952 4,090 4,607Net indebtedness 2,824 3,542 2,798 2,048 1,661Credit RatiosNet indebtedness / adjusted EBITDA2 0.5x 0.6x 0.5x 0.3x 0.3xNet cash interest paid coverage (Ratio)5 33.7x 35.1x 54.8x 63.6x 78.6x

VI. Continental CorporationNet Indebtedness and Gearing Ratio

8,8967,317 6,772

5,320 4,2892,824 3,542 2,798 2,048 1,661

65%46%

26% 27% 19% 13% 9%

219%

118%90%

58%

YE YE YE YE YE YE YE YE YE YE

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net indebtedness (€ mn)

Gearing ratio applying IAS 19 (rev. 2011)

Gearing ratio

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VI. Continental CorporationGross Indebtedness by Source at YE 2018 (€ mn)

1 Percentages are calculated as share of gross indebtedness.2 Amounts shown are nominal values.

Revolving Credit FacilityApr. 2021

157Bond

Feb. 2019 (0.5%)

500

Bond Feb. 2020

(0.0%)600

Bond Sept. 2020 (3.125%)

750Bond

Aug. 2025 (3.9%)

50

Various other bank

lines1,082

Other indebtedness

1,468

› Gross indebtedness €4,607 mn(PY: €4,090 mn)

› Cash€2,761 mn(PY: €1,882 mn)

› Net indebtedness€1,661 mn(PY: €2,048 mn)

› Available credit lines€3,504 mn(PY: €3,687 mn)

2

2

2

2

Bonds 41%1

Various other bank lines 24%1

Other indebtedness 32%1

Syndicated loan 3%1

VI. Continental CorporationMaturities for Bonds1 (€ mn)

1 All amounts shown are nominal values.

500

1,350

2019 2020 2021 2022 2023

As at December 31, 2018 (€ mn) FY 17 FY 18

Gross indebtedness

4,090 4,607

Cash 1,882 2,761

Net indebtedness 2,048 1,661

Available credit lines

3,687 3,504

Total liquidity 5,568 6,266

Bonds

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VI. Continental CorporationPurchasing – Production Materials 2018

Oil-based chemicals14%

Electronics25%

Electro-mechanical components

18%

Mechanical components

23%

Steel and metal parts

6%

Others11%

Natural rubber3%

Purchasing contracts› Continental has a wide range of sources

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 and availability of the materials.

› For some materials, prices might have a long lead time until they become fully reflected in the cost of our final products.

Total production material purchased

in 2018: €20.3 bn

1 E.g. synthetic rubber, carbon black. chemicals.2 E.g. discrete/ standards, microcontroller, LCDs. 3 E.g. printed circuit boards, mechatronics, motors. components.4 E.g. stamped parts, engine system specific forgings, bearings, fasteners.5 E.g. textiles, plastics.

1

2

3

4

5

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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VII. Market DataInstallation Rates of Keyless Entry Systems

Source: Strategy analytics and Continental estimates.

Passive Keyless Entry/Start Remote Keyless Entry

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023

North America

Japan China

Europe

VII. Market DataInstallation Rates of Multimedia Systems1

Source: Strategy Analytics, JD Powers 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 delivers navigation calculation and the screen of the car is used as a display.

Navigation Audio

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023

North America

Japan China

Europe

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Source: Market data and Continental estimates.1Market definition: Average amount of ADAS including sensing rear/surround view cameras but w/o parking assist functions based on ultrasonic sensors. Example: 2018 worldwide – total number of produced cars: 94.0 mn; average sensors per car: 1.49; total sensors: 94.0 mn x 1.49 = 140.1 mn.

0

1

2

3

4

5

2016 2017 2018 2019 2020 2021 2022 2023Europe North America Asia Rest of world Worldwide

Sensors per car

VII. Market DataSensors per car of Advanced Driver Assistance Systems1

VII. Market DataRising Volumes of Head-Up Displays

Source: Market data and Continental estimates.

0

2

4

6

8

10

12

2016 2017 2018 2019 2020 2021 2022 2023Europe North America Japan China

mn units

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VII. Market DataProduction of Passenger Cars and Light Commercial Vehicles (<6t)

mn units 2016 2017 2018E 2019EEurope1 21.4 22.1 21.7 21.7North America 17.8 17.1 17.0 17.0South America 2.7 3.3 3.4 3.6Asia2 50.0 51.6 50.6 50.5Other markets 1.1 1.1 1.3 1.3

Total 93.1 95.2 94.0 94.0Source: IHS, February 2019 and Continental estimates. 1 West, Central and East Europe incl. Russia and Turkey.2 Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia.

VII. Market DataProduction of Medium and Heavy Commercial Vehicles (>6t)

tsd units 2016 2017 2018E 2019EEurope1 605 646 663 663North America 474 542 638 638South America 85 110 155 170Asia2 1,896 2,316 2,240 2,170Other markets 0 0 0 0

Total 3,060 3,614 3,695 3,641

Source: IHS, February 2019 and Continental estimates.1 West, Central and East Europe incl. Russia and Turkey.2 Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia.

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VII. Market DataReplacement Tires – Passenger Cars and Light Commercial Vehicles (<6t)

mn units 2016 2017 2018E 2019EEurope 340 350 358 364North America 285 288 296 301South America 66 71 67 68Asia 431 447 450 465Other markets 46 48 49 50

Total 1,168 1,204 1,220 1,248

Source: LMC World Tyre Forecast Service, December 2018 and Continental estimates.

VII. Market DataReplacement Tires – Medium and Heavy Commercial Vehicles (>6t)

mn units 2016 2017 2018E 2019EEurope 24.5 26.1 25.8 26.3North America 23.6 24.8 26.5 27.0South America 13.7 14.5 14.8 15.1Asia 86.6 88.2 87.0 89.0Other markets 7.5 7.8 7.9 8.0

Total 155.9 161.4 162.0 165.4

Source: LMC World Tyre Forecast Service, December 2018 and Continental estimates.

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Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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VIII. Automotive GroupKey Figures€ mn 2016 2017 2018

Sales 24,496.4 26,565.4 26,855.8EBITDA 2,615.0 3,296.4 3,177.1

in % of sales 10.7 12.4 11.8EBIT 1,526.6 2,086.8 1,890.4

in % of sales 6.2 7.9 7.0EBIT adjusted1 2,180.7 1,886.3

in % of sales1 8.2 7.0

Operating assets (average) 11,978.3 12,874.1 14,095.6ROCE 12.7 16.2 13.4

R, D & E expenses (net) 2,430.9 2,675.5 2,760.5in % of sales 9.9 10.1 10.3

Capex2 1,497.0 1,789.5 2,019.1in % of sales 6.1 6.7 7.5

Depreciation and amortization3 1,088.4 1,209.6 1,286.7in % of sales 4.4 4.6 4.8thereof impairment4 21.4 37.3 19.2

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

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VIII. Automotive GroupSales and Adjusted EBIT1 by Division

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

785202

899

0

1,886

Chassis& Safety

Powertrain Interior cons. AutomotiveGroup

8.2%2.6%

9.3% 7.0%

Adj. EBIT margin (%)

9,588

7,741

9,707180

26,856

Chassis& Safety

Powertrain Interior cons. AutomotiveGroup

2.9%

6.3% 3.2%

0.5%

Organic sales growth (%)

-

Reported sales change › Chassis & Safety: -1.8%› Powertrain: 1.0% › Interior: 4.3% › Automotive Group: 1.1%

1

› Reported EBITDA: €3,177 mn (11.8% of sales) › Reported EBIT: €1,890 mn (7.0% of sales)› R&D (net): €2,761 mn (10.3% of sales) › Capex: €2,019 mn (7.5% of sales)

Automotive Group Sales (€ mn) FY 2018 Automotive Group Adj. EBIT1 (€ mn) FY 2018

VIII. Automotive GroupSales by Market

Germany26%

Europe(excluding Germany)

23%North America

23%

Asia25%

Other markets3%

Germany22%

Other markets2%

Asia28%

North America23%

Europe(excluding Germany)

25%

Sales in 2018: €26.9 bnSales in 2013: €20.0 bn

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VIII. Automotive GroupOrder Intake (LTS1) in the Automotive Group of Around €40 bn in 2018

1 LTS = Lifetime Sales.

Interior Chassis & Safety Powertrain

› Higher book-to-bill in ADAS than C&S average

› Year over year increase in Passive Safety and Sensorics

› HEV order intake at ~€2 bn› About 45% of the order intake was

acquired outside of Europe and North America

› Infotainment and connectivity with the strongest order intake

› About half of the order intake was acquired in Europe

13.5 14.7 13.4

1.5 1.5 1.4

2016 2017 2018

LTS (€ bn) Book-to-bill

10.011.7

14.8

1.2 1.31.5

2016 2017 2018

LTS (€ bn) Book-to-bill

11.513.4

11.41.6 1.7

1.5

2016 2017 2018

LTS (€ bn) Book-to-bill

VIII. Automotive GroupOrder Intake Well Balanced

Europe40%

North America

18%

Asia41%

Other1%

Europe47%

North America

23%

Asia28%

Other2%

Sales by market 2018 Order intake by market 2018

€26.9 bn ~€40 bn

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1,58

9

1,83

6

2,09

7

2,43

1

2,67

6

2,76

1

7.9% 8.

8%

8.9% 9.

9%

10.1

%

10.3

%

2013

2014

2015

2016

2017

2018

R&D expenditure net (mn €) R&D as percentage of sales

VIII. Automotive GroupDigitalization Causes Sustained High R&D and Capex

1,01

6

1,12

6

1,27

5

1,49

7 1,79

0

2,01

9

5.1%

5.4% 5.4% 6.

1% 6.7% 7.5%

2013

2014

2015

2016

2017

2018

Capex (mn €) Capex ratio

Automotive Group R&D net (€ mn) Automotive Group Capex (€ mn)

23.6 24.526.6 26.9

30

35

40 ~40

2015 2016 2017 2018

Automotive Group sales Order intake (LTS)

VIII. Automotive GroupOrder Intake Drives Sustainable Growth

IFRS 9 and IFRS 15 applied starting 2018.1 Lifetime Sales.

1

Automotive Group: Order Intake (€ bn)

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23% 23% 22%

19% 18% 16%

25%28% 30%

27%26%

26%6%5%

6%

84.7 94.0

104.4

2013 2018E 2023EEurope North America ChinaRest of Asia Rest of World

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

› Worldwide PC&LT1 production showed a CAGR 2013-18E of 2%.

› IHS forecasts 2023E 104.4mn units (CAGR 2018E-23E of 2%).

› China is the largest market for PC&LT1 vehicles produced. CAGR expected to slow to 3% in 2018E-23E from 5% during 2013-2018E.

› Rest of Asia expected to grow 2018E-23E at 2%.

› Europe expected to grow 2018E-23E at ~1%.

› North America expected to stagnate(CAGR 2018-23E of 0.2%).

PC&LT1 production (mn units)

Source: IHS, February 2019 and Continental estimates.Europe incl. West, Central and Eastern Europe, Russia and Turkey.Asia including Kazakhstan, Uzbekistan, Middle East and Oceania with Australia.1 Passenger car & light truck (<6t).

CAGR 2%

CAGR 2%

Sustainability at Continental

Market DataAutomotive Group – Chassis & Safety Division Rubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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3835

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Vehicle Dynamics Hydraulic Brake Systems Passive Safety & SensoricsAdvanced Driver Assistance Systems

› Integrated vehicle safety development, safety testing and validation

› Airbag control units / safety (domain) control units

› Crash sensors

› Inertial measurement units› Chassis and driver intention

sensors› Battery and energy monitoring

sensors› Electronic components

(1st tier customer)› Wheel, engine and transmission

speed sensors› V2X-communication

› Electronic chassis components

› Sensors› Camera› Surround view› Long-range radar› Short-range radar› High resolution flash lidar › Short-range lidar

› ADCU

› Assisted driving control units › Automated driving control units

› Driving functions

› Electronic brake systems› Passenger Cars /

Motorcycles› ABS / ESC / oCB

› Software functions› Traction control › Adaptive cruise control› Regenerative brake system› Active front steering› Hill start assist› Hydraulic brake assist› Trailer stability assist

› Air suspension systems

› Calipers

› Drum brakes

› Brake hoses

› Boosters

› Tandem master cylinders

› Electric parking brakes

› Pedal modules

› Brake pressure regulators

› Washer systems

VIII. Chassis & SafetyBusiness Units and Key Products

VIII. Chassis & SafetyLocations Worldwide

India▐ Bangalore▐ Manesar▐ Gurgaon

(New Delhi)

Brazil▐ Salto▐ Varzea Paulista

China ▐ Changchun -

Moonlake▐ Changshu▐ Heihe▐ Jiading CASS

Mexico▐ Ayala Morelos (Cuautla)▐ Guadalajara▐ Las Colinas

USA▐ Auburn Hills▐ Brimley▐ Culpeper▐ Henderson

Malaysia▐ Penang

Japan▐ Asahi▐ Hamakita▐ Monbetsu▐ Yokohama

South Korea▐ Icheon▐ Pangyo▐ Sejong

Philippines▐ Calamba▐ Manila

▐ Lindau▐ Memmingen ▐ Nuremberg▐ Regensburg▐ Rheinböllen▐ Schwalbach▐ Ulm

Europe France▐ ToulouseHungary▐ Budapest▐ VeszprémItaly▐ Cairo Montenotte

Belgium▐ MechelenCzech Republic▐ Adrspach▐ Frenstat▐ Jicin

Portugal▐ PalmelaRomania▐ Iasi▐ Sibiu▐ TimişoaraSlovakia▐ Zvolen

Sweden▐ ArvidsjaurUK▐ Birmingham ▐ Ebbw Vale▐ Lewes

▐ Production / R&D

Germany ▐ Alzenau▐ Bebra▐ Frankfurt▐ Gifhorn▐ Hanover ▐ Ingolstadt▐ Karben▐ Korbach

▐ Joint Ventures <= 50%

72 sites for production and R&D in 20 countries. Divisional headquarter in Frankfurt/Main, Germany.

▐ Chongqing▐ Jiading SABS▐ Yangzhou

▐ Morganton▐ San José▐ Santa Barbara▐ Seguin

▐ Queretero▐ Silao▐ San Luis Potosi

▐ Jiading TC▐ Lian Yun Gang▐ Shanghai▐ Yancheng

Locations shown might be shared with other Continental divisions.

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VIII. Chassis & SafetyKey Figures€ mn 2016 2017 2018

Sales 8,977.6 9,767.8 9,588.0EBITDA 954.6 1,301.6 1,213.3

in % of sales 10.6 13.3 12.7EBIT 580.8 897.7 782.5

in % of sales 6.5 9.2 8.2EBIT adjusted1 898.1 784.9

in % of sales1 9.2 8.2

Operating assets (average) 4,448.7 4,519.6 4,887.1ROCE 13.1 19.9 16.0

R, D & E expenses (net) 773.4 913.8 1,023.2in % of sales 8.6 9.4 10.7

Capex2 523.7 682.5 749.7in % of sales 5.8 7.0 7.8

Depreciation and amortization3 373.8 403.9 430.8in % of sales 4.2 4.1 4.5thereof impairment4 1.5 0.5 1.5

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

VIII. Chassis & SafetySales by Market

Germany26%

Europe(excluding Germany)

20%North America

22%

Asia29%

Other markets3%

Germany20%

Other markets1%

Asia33%

North America24%

Europe(excluding Germany)

22%

Sales in 2018: €9.6 bnSales in 2013: €7.3 bn

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VIII. Chassis & SafetyMarket-Specific Initiatives – Towards Safer Mobility (1)› mandatory as of Oct. 2012 f› Electronic stability control (ESC)

› mandatory as of Oct. 2012 for all new types of passenger cars

› mandatory as of Oct. 2014 for all new passenger cars1

› Advanced emergency braking system (AEB) andlane departure warning (LDW)› mandatory for all new types of:

› heavy commercial vehicles (>22t GVW) and buses (>12t GVW) as of 2017

› heavy commercial vehicles with GVW between 3.5t-22t as of 20182

› mandatory for all new vehicles:› heavy commercial vehicles (>22t GVW)

and buses (>12t GVW) as of Nov. 2019 › heavy commercial vehicles with GVW

between 3.5t-22t as of 20202

Japan

1 Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Japan.2 http://www.mlit.go.jp/common/001027292.pdf.3 CONTRAN 312/2009. 4 CONTRAN 641/2016.

5 CONTRAN 509/2014.6 Federal Motor Vehicle Safety Standards; Rear Visibility; Final Rule; 49 CFR Part 571.7 Federal Motor Vehicle Safety Standards, 49 CFR Part 136.GVW = Gross Vehicle Weight.

› Rear Visibility› mandatory as of May 1, 2016, with a phase in

schedule for all vehicles and low-speed vehicles with a gross vehicle weight rating (GVWR) of 10,000 pounds or less6

› Electronic stability control (ESC)› mandatory as of Jan. 2014 for all new types of light

vehicles› mandatory as of Jan. 2016 for all new light vehicles7

› Tire pressure monitoring system (TPMS)› mandatory as of Jan. 2016 for all new types of light

vehicles7

Brazil› Anti-lock brake system (ABS)

› mandatory as of Jan. 2014 for all new passenger cars, after phase-in which began in 20103

› Electronic stability control (ESC)› mandatory as of Jan. 2020 for all new types of

passenger cars› mandatory as of Jan. 2020 for all new types of

commercial vehicles and buses› mandatory as of Jan. 2022 for all new passenger cars› mandatory as of Jan. 2022 for all new commercial

vehicles and buses4

› Motorcycle anti-lock brake system (ABS)› mandatory as of Jan. 2019 for all new motorcycles

>300ccm, after a phase-in which began in 20165

USA

Other markets are following EU/USA on ESC and Motorcycle ABS regulation› Electronic stability control (ESC): Australia (11/2011 for new car types, 11/2013 for all new cars), Turkey (02/2012 for new car types, 11/2014 for all new cars, 01/2015 for new heavy

vehicle types, 01/2016 for all new heavy vehicles), New Zealand (07/2015 for all new cars), Malaysia (01/2016 for all new cars), Ecuador (01/2018 for new car types, 01/2020 for all new cars), Argentina (01/2018 for new car types, 01/2020 for all new cars)

› Motorcycle anti-lock brake system (ABS): India (04/2018 for new motorcycle types >125ccm, 04/2019 for all new motorcycles >125ccm, for motorcycles ≤125ccm same dates apply with requirement to have either ABS or a Combined Brake System)

VIII. Chassis & SafetyMarket-Specific Initiatives – Towards Safer Mobility (2)

› Advanced emergency braking system detecting vehicles ahead› mandatory as of 2020 for all new types of passenger cars and light

commercial vehicles (<=3.5t GVW)› mandatory as of 2022 for all new passenger cars and light commercial

vehicles (<=3.5t GVW)› Advanced emergency braking system for pedestrians

› mandatory as of 2022 for all new types of passenger cars and light commercial vehicles (<=3.5t GVW)

› mandatory as of 2024 for all new types of passenger cars and light commercial vehicles (<=3.5t GVW)

› Pedestrian and cyclist collision warning› mandatory as of 2022 for all new types of heavy commercial vehicles and

buses› mandatory as of 2024 for all new heavy commercial vehicles and buses

› Blind spot information system (BSIS)› mandatory as of 2022 for all new types of heavy commercial vehicles and

buses› mandatory as of 2024 for all new types of heavy commercial vehicles and

buses› Emergency lane keeping

› mandatory as of 2022 for all new types of passenger cars and light commercial vehicles (<=3.5t GVW)

› mandatory as of 2024 for all new passenger cars and light commercial vehicles (<=3.5t GVW)

› Advanced emergency braking on heavy duty vehicles (AEBS)› mandatory as of 2020 for all new types of heavy commercial vehicles and

buses› mandatory as of 2022 for all new heavy commercial vehicles and buses

› Tire pressure monitoring› mandatory as of 2020 for all new types of light commercial vehicles (<=3.5t

GVW)› mandatory as of 2022 for all new light commercial vehicles (<=3.5t GVW)› mandatory as of 2022 for all new types of heavy commercial vehicles and

buses› mandatory as of 2024 for all new heavy commercial vehicles and buses

› Intelligent speed assistance (ISA)› mandatory as of 2022 for all new types of vehicles› mandatory as of 2024 for all new vehicles

› Event (accident) data recorder (EDR)› mandatory as of 2022 for all new types of passenger cars› mandatory as of 2024 for all new passenger cars

› Platooning› mandatory as of 2022 for all new types of vehicles› mandatory as of 2024 for all new vehicles

› Drowsiness and attention detection› mandatory as of 2022 for all new types of vehicles› mandatory as of 2024 for all new vehicles

EU

Source: European Commission COM(2018) 286 final. Legislation of the General Safety Regulation for all technologies (EU) is under development and not finally decided by the EU. Assumption - earliest publication expected by June 1, 2019.Application date type A = June 1, 2019 (new type of vehicles) + 36 months = June 1, 2022 (new vehicles). Application date type B = June 1, 2022 (new type of vehicles) and June 1, 2024 (new vehicles). Application date type C = June 1, 2024 (new type of vehicles) and June 1, 2026 (new vehicles). GVW = gross vehicle weight.

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VIII. Chassis & Safety Global Development of Active Safety Regulations

1 ESC = Electronic Stability Control; 2 ABS = Anti-lock Braking System; 3 LDWS = Lane Departure Warning System; 4 AEB(S) = Advanced Emergency Braking System; 5 RVS = Rearview Video System; 6 V2X = Vehicle to everything; LKAS7 = Lane Keeping Assist System.

Decided

Expected by Continental

ESC1

Passenger vehicles

RVS5

2016 (10%) –2018 (100%)

ESC1

Passenger vehicles

Legi

slat

ion

Legi

slat

ion

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Review of General Safety Regulation› AEB4 for passenger vehicles› LKAS7 for passenger vehicles› Blind Spot Information System› Back-up Aid for passenger vehicles› Event data recording

ABS2

Minivans

AEB4

Commercialvehicles and buses

AEB4 and LDWS3

Commercial vehicles and buses

ABS2 ABS2

Motorcycles>300ccm2016 (10%) –2019 (100%)

V2X Device6

ABS2

MotorcyclesESC1

Light commercial

vehicles

AEB4

LDWS3

Commercialvehicles & buses

ABS2

Motorcycles

ABS2

Motorcycles

ABS2

Passenger cars and bussesMotorcycles >125ccm

ESC1

Passenger vehicles

ESC1

Commercialvehicles and buses

VIII. Chassis & Safety Global Development of Active Safety Regulations and Ratings

1Automated Driving (based on SAE Level 2 systems); 2 FCWS = Forward Collision Warning System; 3 LDWS = Lane Departure Warning System; 4 AEB(S) = Advanced Emergency Braking System; 5 CIBS = Crash Imminent Braking System; 6 DBS = Dynamic Brake Support; 7 RVS = Rearview Video System; 8 SAS = Speed Assist System; 9 LKA = Lane Keeping Assist; 10 RDP = Road Departure Protection; 11 NCAP = New Car Assessment Program; 12 ESS = Emergency Steering Support;13 VRU = Vulnerable Road User; 14 V2X = Vehicle to everything; 15 BSD = Blind Spot Detection; 16 Power Two Wheelers.

Decided

Expected by Continental

AEB4 & LDWS3

NCAP11 star-rating

AEB4 & LDWS3

NCAP11

star-rating

AEB4

SAS8 & LKA9 & AEB4 PedestrianNCAP11 star-rating

Con

sum

er T

est

Con

sum

er T

est

AEB4 Intersection,ESS12, AEB4 Back-Over, Driver MonitoringNCAP11 star-rating

AEB4 & AES12

Head-On & AEB PTW16

NCAP11 star-rating

V2X14/VRU13

TagNCAP11

star-rating

FCWS2/LDWS3 RVS7

CIBS5 & DBS6

RDP10 & AEB4

BicycleNCAP11 star-ratingPublished first AD1

Tests (no star-rating)

BSD15,LKA9 & AEB4 Pedestrian

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

AEB4 PedestrianNCAP11 star-rating

AEB4 PedestrianAEB4 Reverse

ESS12AEB4 Bicycle

AEB4 JunctionNCAP11 star-ratingAEB4 Bicycle

NCAP11 star-rating

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Roadmap 20202018 2019 2020 2021 2022 2023 2024 2025

AEB1 VRU2 cyclist

Far-side protection

Mobile progressive deformable barrier

Roadmap 2025 – Safety Rating

Driver monitoringAEB1 VRU2 pedestrian – back-overAEB1 – Junction and crossingAEB1 – Head-onAutomatic Emergency SteeringV2X3

Whiplash/Rear-end crash protectionRevised subsystem for pedestrian and cyclistRescue, extrication and safetyChild presence detection

ROADMAP 2025 – AD Grading of AD functions

VIII. Chassis & Safety NCAP Roadmap

Source: https://cdn.euroncap.com/media/30700/euroncap-roadmap-2025-v4.pdf.1AEB(S) = Advanced Emergency Braking System; 2VRU = Vulnerable Road User; 3V2X = Vehicle to everything.

Start

Protocol release

Implementation

Communication onlybased on first ideas

Proposal to release updates outof phase with overall rating

Europe

North America

South America

Asia/Pacific

World

ContinentalBoschTRW

ContinentalBoschTRW

ContinentalBoschMando

ContinentalAdvicsBosch

ContinentalAdvicsBosch

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. Chassis & Safety Market Position Electronic Brake Systems in 2018

Source: Continental estimates.

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Europe

North America

South America

Asia/Pacific

World

ContinentalCBITRW

ContinentalAkebonoTRW

ContinentalCBITRW

ContinentalAdvicsTRW

ContinentalAdvics TRW

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. Chassis & SafetyMarket Position for Foundation Brake Systems in 2018

Source: Continental estimates.

Europe

North America

South America

Asia/Pacific

World

ContinentalBoschTRW

ContinentalBoschTRW

ContinentalBoschTRW

ContinentalAdvicsBosch

ContinentalBoschTRW

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. Chassis & Safety Market Position for Actuation in 2018

Source: Continental estimates.

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Europe

North America

South America

Asia/Pacific

World

ContinentalAutolivBosch

ContinentalAutolivBosch

ContinentalAutolivBosch

ContinentalAutolivDenso

ContinentalAutolivBosch

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. Chassis & SafetyMarket Position for Airbag Electronics in 2018

Source: Continental estimates.

Europe

North America

Asia

World

ContinentalBoschValeo

ContinentalBosch Magna

ContinentalDensoPanasonic

ContinentalBoschValeo

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. Chassis & SafetyMarket Position for Advanced Driver Assistance Systems in 2018

Source: Continental estimates.

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Sustainability at Continental

Market DataAutomotive Group – Powertrain Division Rubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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Transmission control units for automatic transmissions

› Step-AT, DCT, CVT, DHT, AMTTransmission actuators› Clutch, gearshiftTransmission sensors› Sensorcluster

Electric transmission oil pumps

Shift-by-wire and ePark solutionsMicromobility electric drivetrains› Pedelec drive unit

TransmissionEngine SystemsFuel & Exhaust ManagementSensors & Actuators

Hybrid Electric Vehicle

Engine management passenger cars› Diesel piezo common rail injection › Gasoline direct and port fuel

injection› Synthetic fuels› Exhaust gas after-treatmentEngine management commercial vehicles› Diesel piezo common rail injection › Exhaust gas after-treatmentEngine management non-automotiveTurbochargerElectrification and E-Mobility› On-board high voltage battery

charger› Powertrain domain control units

Power electronics

Electric motors

HV eDrive

48V power electronics

48V drives

Battery management systems

Power net systems

Actuators for› Thermal management› Electric pumps› Electric throttle› Exhaust and emission› General purpose

Exhaust and emission sensors for› Exhaust gas

Transmission and engine sensors› Mass airflow› Combustion› Position› Pressure› Fluid level and quality› Temperature

Vehicle access sensors

Fuel delivery modules

Fuel level sensors

Fuel pumps

Electronics for fuel pumpcontrol› Standalone and flange

integrated

Fluid level sensor with sealed contact system

Exhaust aftertreatment› Catalysts and filters› Electronics› SCR Urea extraction unit

Water delivery module

VIII. PowertrainBusiness Units and Key Products until December 31, 2018

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VIII. PowertrainNew Powertrain Structure Starting January 1, 2019

Former business units› Engine Systems› Transmission

› As before Former business units› Sensors & Actuators› Fuel and Exhaust

Management

› As a result of the carve-out, segment manages business between Continental and Powertrain

› Sales should constantly decrease over time and will be accounted at cost plus

New Powertrain1

Engine & Drivetrain Systems (E&DS)

Hybrid Electric Vehicle (HEV)

Powertrain Components (PTC)

Contract Manufacturing (CM)

1 The segment names displayed represent current working titles.

VIII. PowertrainLocations Worldwide59 sites for production and R&D in 18 countries. Divisional headquarters in Regensburg, Germany.

India▐ Bangalore▐ Manesar▐ PuneBrazil

▐ Guarulhos▐ Salto

China▐ Changchun▐ Chongqing▐ Shanghai▐ Tianjin▐ Wuhu

Mexico▐ Ayala Morelos (Cuautla)▐ Guadalajara▐ Juarez▐ San Luis Potosi▐ Nogales

Malaysia▐ Penang

Japan▐ Yokohama

South Korea▐ Icheon▐ Sejong▐ Icheon

▐ Nuremberg▐ Regensburg▐ Roding▐ Schwalbach

Europe France▐ Boussens▐ Cergy▐ Faulquemont▐ Foix▐ Toulouse

Czech Republic▐ Brandys▐ Frenstat▐ Trutnov▐ Ostrava

Romania▐ Brasov▐ Iasi▐ Sibiu▐ Timişoara

Germany▐ Bebra/Mühlhausen▐ Berlin▐ Dortmund▐ Eisenach ▐ Gifhorn

Canada▐ Chatham

Thailand▐ Amata City

Russia▐ Kaluga

USA▐ Auburn Hills▐ Dearborn▐ Deer Park▐ Fountain Inn▐ Newport News▐ Seguin▐ Delavan

Singapore▐ Singapore

Hungary▐ Budapest▐ DebrecenItaly▐ Pisa

▐ Gruenstadt▐ Karben▐ Limbach-Oberfrohna▐ Lohmar

Locations shown might be shared with other Continental divisions.As of Dec. 31, 2018.

▐ Production / R&D▐ Joint Ventures <= 50%

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VIII. PowertrainKey Figures€ mn 2016 2017 2018

Sales 7,319.5 7,660.9 7,741.0EBITDA 756.2 854.8 574.6

in % of sales 10.3 11.2 7.4EBIT 378.0 439.9 119.8

in % of sales 5.2 5.7 1.5EBIT adjusted1 469.9 202.3

in % of sales1 6.1 2.6

Operating assets (average) 3,015.8 3,325.6 3,582.2ROCE 12.5 13.2 3.3

R, D & E expenses (net) 701.5 699.0 672.6in % of sales 9.6 9.1 8.7

Capex2 544.4 653.7 691.0in % of sales 7.4 8.5 8.9

Depreciation and amortization3 378.2 414.9 454.8in % of sales 5.2 5.4 5.9thereof impairment4 8.3 18.6 19.3

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

VIII. PowertrainSales by Market

Germany22%

Europe(excluding Germany)

28%

North America24%

Asia25%

Other markets1%

Germany19%

Other markets2%

Asia29%

North America23%

Europe(excluding Germany)

27%

Sales in 2018: €7.7 bnSales in 2013: €6.3 bn

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VIII. PowertrainRegulations to reduce CO2 Emissions in New Vehicle Fleets

60

90

120

150

180

210

2005 2010 2015 2020 2025 2030

US EU Japan China South Korea

Gram CO2 per kilometer, normalized to NEDC1

Source: International Council on Clean Transportation (ICCT), as of 01/2019 (and other sources)Due to different test procedures (U.S. CAFE, NEDC, JC08 and WLTC) the ICCT has developed a methodology to convert between cycles.1 New European Driving Cycle. 2 In 2020 mandatory for 95% of the OEMs’ fleets. As of 2021 mandatory for 100%.

Solid lines: historical performance and enacted targets. Dashed lines: proposed targets and studies.

2

VIII. PowertrainNew Management Structure

› Joined Continental AG in Hanover as an HR specialist in 1992

› Head of various HR departments in Tires and as a corporate function since 2000

› Head of HR in the Tires division since 2010

› CHRO since January 2019

› 10 years of experience in communications technology as well as systems and automation technology, including a CFO position

› With Siemens VDO and Continental in management positions since 1997

› Head of finance and controlling in the Chassis & Safety division since 2008

› CFO since January 2019

› More than 25 years in the automotive electronics industry since joining Siemens AG in 1989

› Held various management positions in controlling in Germany and France

› Head of the global Body & Security business unit within the Interior division as executive vice president since 2007

› CEO since October 2018

Andreas Wolf

CEO

Werner Volz

CFO

Ingo Holstein

CHRO

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Sustainability at Continental

Market DataAutomotive Group – Interior DivisionRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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Instrumentation & Driver HMI

Infotainment & Connectivity Body & Security

Commercial Vehicles & Aftermarket

› Body control modules

› Access control systems

› Power closures

› Door control units

› Intelligent glass control

› Seat comfort systems

› Tire information systems

› Gateways

› Power stabilization

› Lighting control units

› Advanced antenna electronics

› Smart device integration

› Tachographs and telematics› Visual and haptical human-

machine interface› Chassis, body and transmission

electronics› Spare parts, wear parts and tools

› Original equipment services› Services and diagnostics for the

independent aftermarket, fleets and vehicle manufacturers

› Key as a service

› In-Car Data as a service

› eHorizon as a service

› City-Data as a service

› Instrument clusters

› Full digital clusters

› Display solutions

› Head-up displays

› Haptic controls

› Interior camera

› xDomain Hub

› Radios

› Infotainment

› Connectivity and telematics› Software and

connected solutions

VIII. InteriorBusiness Units and Key Products

© Continental AG 2018 Fact Book | 62

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VIII. InteriorLocations Worldwide83 sites for production and R&D in 26 countries. Divisional headquarters in Regensburg, Germany.

India▐ Bangalore▐ Manesar

Brazil▐ Guarulhos▐ Resende

China▐ Changchun▐ Chongqing▐ Jinan▐ Nanjing▐ Shanghai▐ Tianjin▐ Wuhu

Mexico▐ Cuautla▐ Guadalajara▐ Juárez

USA▐ Auburn Hills▐ Culpeper▐ Deer Park▐ Hillsboro▐ Newport News

Malaysia▐ Penang

Japan▐ Kanagawa/

Yokohama▐ Aichi/Toyota

South Korea▐ Gyeonggi-do▐ Icheon-si▐ Sejong-si

▐ Karlsruhe▐ Markdorf▐ Muehlhausen▐ Munich▐ Nuremberg▐ Regensburg▐ Schwalbach am Taunus▐ Villingen-Schwenningen▐ Wetzlar▐ Munich

France▐ Boussens▐ Foix▐ Rambouillet▐ ToulouseHungary▐ BudapestItaly▐ Treviso

Austria▐ ViennaBegium▐ BrusselsCzech Rep.▐ Adršpach▐ Brandŷs▐ Frenštát

Lithuania▐ KaunasRomania▐ Iasi▐ Sibiu▐ TimişoaraSerbia▐ Novi SadSpain▐ Rubi

Sweden▐ ArvidsjaurUK▐ Birmingham▐ Bridgewater▐ Coventry▐ Devizes

Germany▐ Babenhausen▐ Bebra▐ Berlin▐ Dortmund▐ Erlangen▐ Garching▐ Herbrechtingen▐ Ingolstadt▐ Karben

▐ Salto▐ São Bernardo do Compo

Singapore▐ Singapore

Australia▐ Bundoora

Russia▐ Chistopol

▐ La Tijera▐ Las Colinas▐ Nogales

Europe

Philippines▐ Manila

Israel▐ Tel

Aviv

▐ Seguin▐ Troy▐ San Jose▐ Seattle

Locations shown might be shared with other Continental divisions.

▐ Periférico▐ Querétaro▐ Santa Anita

Thailand▐ Bangkok

▐ Production / R&D▐ Joint Ventures <= 50%

VIII. InteriorKey Figures€ mn 2016 2017 2018

Sales 8,324.7 9,305.2 9,707.2EBITDA 904.2 1,140.0 1,389.2

in % of sales 10.9 12.3 14.3EBIT 567.8 749.2 988.1

in % of sales 6.8 8.1 10.2EBIT adjusted1 812.7 899.1

in % of sales1 8.8 9.3

Operating assets (average) 4,513.8 5,028.9 5,626.3ROCE 12.6 14.9 17.6

R, D & E expenses (net) 956.0 1,062.7 1,064.7in % of sales 11.5 11.4 11.0

Capex2 428.9 453.3 578.4in % of sales 5.2 4.9 6.0

Depreciation and amortization3 336.4 390.8 401.1in % of sales 4.0 4.2 4.1thereof impairment4 11.6 18.2 -1.6

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

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VIII. InteriorSales by Market

Germany29%

Europe(excluding Germany)

21%

North America23%

Asia21%

Other markets6%

Germany27%

Other markets3%

Asia21%

North America23%

Europe(excluding Germany)

26%

Sales in 2018: €9.7 bnSales in 2013: €6.6 bn

VIII. InteriorExamples of Market-Specific Initiatives and Projects

› Connectivity (telematics, IAM, connected gateways)

› High speed connection (5G solutions)

› Infotainment (multimedia)› Digital tachographs (DTCO)› Cyber security, OTA (Argus)› Systems integration (E2E)

› Information systems (Integrated Interior Platform)

› Cutting edge HMI (FDC, Augmented Reality HUD, Haptics)

› Assist and warning functions (Digital companion)

› Fleet services (TIS Web, Zonar)

› Map/road services (eHorizon)› Key as a service (OTA keys)› City data, smart city

(Quantum Inventions) › Service backend

(Continental.cloud)

Holistic Connectivity Holistic HMI Services

Several initiatives at e.g.: ITS = Intelligent Transportation Systems; ERTICO = European road transport telematics implementation coordination organisation; Ongoing programs and field tests in Asia, America and Europe, e.g. Japan, Singapore, Germany, France.

IAM = Intelligent Antenna Module; E2E = End to End; HMI = Human Machine Interface; OTA = Over The Air; FDC = Full Digital Cluster; HUD = Head-Up Display.

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Europe

North America

South America

Asia/Pacific

World

ContinentalLearValeo

ContinentalDenso Sensata

ContinentalBoschDenso

ContinentalBosch Denso

ContinentalBoschDenso

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. InteriorMarket Position for Body & Security in 2018

Source: Continental estimates.

Europe

North America

South America

Asia/Pacific

World

ContinentalMagneti MarelliVisteon

ContinentalNippon SeikiVisteon

ContinentalMagneti Marelli Yazaki

ContinentalDensoNippon Seiki

ContinentalDenso Visteon

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. InteriorMarket Position for Instrumentation & Driver HMI1 in 2018

Source: Continental estimates.1 Excluding cockpit modules.

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Europe

North America

South America

Asia/Pacific

World

ContinentalHarmanLG

HarmanLG Panasonic

ContinentalBoschHarman

Clarion HarmanPanasonic

ContinentalHarmanPanasonic

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

ContinentalOther suppliers

ContinentalOther suppliers

Other suppliers

VIII. InteriorMarket Position for Infotainment & Connectivity in 2018

Source: Continental estimates.

Europe

North America

South America

Asia/Pacific

World

ContinentalStoneridgeWabco

ContinentalPhoenixStoneridge

ContinentalBoschWabco

ContinentalDETCYazaki

ContinentalStoneridgeYazaki

Market share of all suppliers other than top 3

Other suppliers

Other suppliers

Other suppliers

Other suppliers

Other suppliers

VIII. InteriorMarket Position for Commercial Vehicles1 in 2018

Source: Continental estimates.1 Market shares for commercial vehicle business as described in BU structure excluding automotive aftermarket.

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Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

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IX. Rubber GroupKey Figures€ mn 2016 2017 2018

Sales 16,097.6 17,494.7 17,603.1EBITDA 3,559.6 3,499.6 3,196.6

in % of sales 22.1 20.0 18.2EBIT 2,688.6 2,593.5 2,278.3

in % of sales 16.7 14.8 12.9EBIT adjusted1 2,686.6 2,372.8

in % of sales1 15.4 13.6

Operating assets (average) 8,561.4 9,325.1 9,618.1ROCE 31.4 27.8 23.7

R, D & E expenses (net) 380.6 428.2 448.5in % of sales 2.4 2.4 2.5

Capex2 1,094.1 1,060.2 1,087.3in % of sales 6.8 6.1 6.2

Depreciation and amortization3 871.0 906.1 918.3in % of sales 5.4 5.2 5.2thereof impairment4 37.2 2.9 1.5

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

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IX. Rubber Group Sales and Adjusted EBIT1 by Division

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

473

1,900 2,373

ContiTech Tires cons. Rubber Group

7.6%

16.8% 13.6%

Adj. EBIT margin (%)

6,345

11,352

94

17,603

ContiTech Tires cons. Rubber Group

3.2%

3.1% 3.0%

Organic sales growth (%)

Reported sales change› ContiTech: 1.6%› Tires: 0.2% › Rubber Group: 0.6%

› Reported EBITDA: €3,197 mn (18.2% of sales) › Reported EBIT: €2,278 mn (12.9% of sales)› R&D (net): €449 mn (2.5% of sales) › Capex: €1,087 mn (6.2% of sales)

-

1

Rubber Group Sales (€ mn) FY 2018 Rubber Group Adj. EBIT1 (€ mn) FY 2018

0

IX. Rubber GroupSales by Market

Germany21%

Europe(excluding Germany)

40%

North America20%

Asia11%

Other markets8%

Germany17%

Other markets6%

Asia14%

North America27%Europe

(excluding Germany)

36%

Sales in 2018: €17.6 bnSales in 2013: €13.4 bn

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IX. Rubber GroupOpportunities and Challenges – Rising Demand vs. Rather Stable Tire Capex

› Global replacement tire market expected to grow to 1.4 billion units by 2023

› Mix improvement continues driven by growing SUV share in the car park, espec. in Europe and China

› Europe to stay the largest replacement tire market by volume

› Tire Capex seems to be in balance with demand expectations

30% 29% 27%25% 24% 22%12% 14% 17%24%

24%24%9%

9%10%

1.061.23

1.42

2013 2018E 2023EEurope North America China Asia excluding China Rest of World

World Market for PC & LT1 Replacement Tires

Tire Capex2 2007 to 2019E (mn €)

0

2,000

4,000

6,000

8,000

10,000

1 Passenger and light truck replacement tire market in bn units; source: LMC (Dec. 2018).2 Company filings and forecasts (based on public information from 16 tire companies).

CAGR 3%CAGR 3%

IX. Rubber GroupGrowth Opportunities – Improving Tire Mix Due to Rising SUV & Pickup Share

PC&LT1 Production Europe PC&LT1 Production North America

1 Passenger car & light truck (<6t). Source: IHS, February 2019.

Share of SUVs and Pickup Trucks

PC&LT1 Production China PC&LT1 Production Worldwide

18%32% 38%

2013 2018E 2023E

50%63% 71%

2013 2018E 2023E

17%

41% 45%

2013 2018E 2023E

26%42% 46%

2013 2018E 2023E

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IX. Rubber Group Additional Tire Production Capacity of around 37mn1 Units by 2020/21

Mount Vernon(US)

Sumter(US)

Camaçari(BRA)

Kaluga(RU)

(CN)

Modipuram(IN)

Otrokovice(CZ)

Puchov(SK)

Rayong(THA)

Hefei

+2

+7

+3

+4

+14

+0.7+1.3

+0.3

+0.8

+0.5

+0.4

+ 0.3

+2Mississippi(US)

1 Base 2011.

Passenger tires

Truck tires

IX. Rubber GroupUpdate on 2025 Strategy

Stage 2: 2011 – 2015Sustain Value

› Accelerated global growth (focus BRIC countries)

› Leverage cost position› Improved technology position

to establish among “Best In Class”

Continuous value creation is our driving force!

Stage 3: 2016 – 2025Enhance Value

› Balance the global footprint› Benefit from excellent cost

position› Achieve podium position in

technology worldwide› Improve brand awareness

further› Rank among the top 3 globally

2 1 3

Stage 1: 2001 – 2010Create Value

› Global footprint and business optimized

› Strong cost focus› Global presence of CVT

sustained (SA/APAC)› Turnaround of PLT business in

North America region succeeded› Worldwide technology gap to

competition closed

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IX. Rubber GroupBalanced Global Manufacturing Footprint

0%

25%

50%

75%

100%

2010 2015 2025 target

2025 Local sourcing at competitive landed cost

Local sourcing at lowest landed

cost

Leverage costs

APAC

Americas

EMEA

IX. Rubber GroupStrategy 2025: Globalize Growth (mn units)1

1 Continental’s global production capacity of PC&LT and CV tires.

2025 Continental’s growth to outperform global market 2 1 3

APAC

Americas

EMEA

∑120∑142 ∑>200

0

40

80

120

2010 2015 2025 target

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IX. Rubber GroupRelevant Market and Growth Opportunities for ContiTech Products

Source: Market data and Continental estimates.1 Additional sales driven by servitization and software.

Σ~€82 bn

Σ~€64 bn

Balanced portfolio of OE automotive and non-OE automotive businesses –Growth through volume and (added) value1 expansion of products

1

2

3

4

567

1 Benecke-Hornschuch Surface Group (incl. Elastomer Coatings from 1/2018)

3 Industrial Fluid Systems

4 Vibration Control

5 Power Transmission Group

6 Conveyor Belt Group

7 Air Spring Systems

2 Mobile Fluid Systems

2018 2025

IX. Rubber GroupStrong Track Record of Acquiring and Integrating Operations

IFRS 9 and IFRS 15 applied starting 2018. All sales of acquisitions shown are pro forma sales in the year of the acquisition. 1 Incorporated starting March 1, 2017. 2 Do It Yourself.

Parker Hannifin’s automotive air conditioning business and Freudenberg

Sealing Technologies GmbHCombined sales: ~€180 mn

Phoenix AG, GermanyRubber productsSales: ~€1.0 bn

Matador Rubber s.r.o., Slovakia

Conveyor beltsSales: ~€30 mn

Tianjin Xinbinhai Conveyor Belt Co., China

and Mining Industrial Resource Supplies Pty

Ltd., AustraliaCombined sales:

~€15 mn

Legg Company Inc., USA and Metso Corp.,

FinlandConveyor belts

Combined sales: ~€60 mn

Veyance Technologies Inc., USARubber productsSales: ~€1.3 bn

Roulunds A/S, DenmarkTransmission belts

Sales: ~€45 mn

2,0632,894 2,869 3,064 3,007

2,4063,095 3,583 3,712 3,878 3,931

5,368 5,4636,246 6,345

7% 6%11% 12% 11%

7%12% 12% 12% 12% 11%

3%7% 7% 6%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Sales (mn €) Reported EBIT margin

Hornschuch Group GmbH, Germany

Foils, artificial leather for the furniture, construction, and automotive industries

and for the DIY2 sectorSales: ~€390 mn1

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IX. Rubber GroupRaw Material Prices

Source: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).

0%

50%

100%

150%

200%

250%

300%

350%

Natural Rubber TSR 20 Natural Rubber RSS3 Styrene Crude oil Butadiene

based on January 1, 2008

2008 2009 2010 2011 2012 2013 2014 2015 201820172016

Sustainability at Continental

Market DataAutomotive GroupRubber Group – Tires DivisionShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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1 Except North America, Columbia and Peru.2 Trademark rights for Malaysia, Singapore and Brunei.

PLT CVT Two Wheel Tires

Original Equipment

Replacement Truck Tires Commercial Specialty TiresEMEA The Americas APAC EMEA The Americas APAC

Tires for:› Compact, medium-size and full-size cars › 4x4 and SUVs› Vans, light trucks and recreational vehicles

Tires, services and solutions for customer segments:

› Goods› People› Construction

Tires, services and solutionsfor the applications: materialhandling,agriculture andearthmoving

Tires andtubes forbicycles and motorcycles

Ext. mobility systems: SSR, Minispares, Conti MobilityKit, ContiSeal, ContiSilent

IX. TiresBusiness Units and Tire Brands

1

2

Racing:

IX. TiresKey Figures€ mn 2016 2017 2018

Sales 10,717.4 11,325.8 11,352.2EBITDA 2,828.7 2,748.7 2,495.2

in % of sales 26.4 24.3 22.0EBIT 2,289.4 2,151.3 1,882.1

in % of sales 21.4 19.0 16.6EBIT adjusted1 2,146.8 1,900.0

in % of sales1 19.0 16.8

Operating assets (average) 5,612.7 6,143.0 6,471.2ROCE 40.8 35.0 29.1

R, D & E expenses (net) 260.9 289.8 299.4in % of sales 2.4 2.6 2.6

Capex2 882.1 847.0 837.1in % of sales 8.2 7.5 7.4

Depreciation and amortization3 539.3 597.4 613.1in % of sales 5.0 5.3 5.4thereof impairment4 0.2 0.5 1.2

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

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IX. TiresSales by Market

Germany17%

Europe(excluding Germany)

43%

North America23%

Asia9%

Other markets8% Germany

14%

Other markets7%

Asia12%

North America26%

Europe(excluding Germany)

41%

Sales in 2018: €11.4 bnSales in 2013: €9.6 bn

Austria

Estonia

Finland

Germany

Europe: Winter Tires Mandatory or Situationally Mandatory

Latvia

Lithuania

Romania

Sweden

Slovakia

Slovenia

November 1 to April 15 when winter weather conditions prevail

October 15 to April 1

December 1 to end of February

December 1 to March 1

November 1 to April 1

December 1 to March 31 when winter weather conditions prevail

Mandatory when winter weather conditions prevail (tires produced starting Jan. 1, 2018, must be marked with snowflake symbol)

When winter weather conditions prevail

November 15 to March 15

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.

November 15 to March 31 when roads are snowy/icy

Norway

November 1 to Monday after Easter when winter weather conditions prevail; November 15 to March 31 for trucks

Europe: Winter Tires Partly Mandatory

Czech Republic

November 1 to March 31 when winter weather conditions prevail

France

Mandatory on certain roads, marked with signs

Italy Switzerland

Drivers may be held liable, if they cause an accident with summer tires mounted when winter weather conditions prevail

Canada: Winter Tires Partly Mandatory

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

Mandatory in Québec December 15 to March 15; mandatory on certain roads in the mountains of Canada when winter weather conditions prevailCanada

Turkey

December 1 to April 1 for commercially used vehicles

Bosnia and Herzegovina

November 15 to April 15 when winter weather conditions prevail

Luxembourg

Mandatory when winter weather conditions prevail

Macedonia

November 15 to March 15

Serbia

November 1 to April 1 when winter weather conditions prevail

RussiaDecember 1 to February 28

Iceland

November 15 to April 1

Spain

BulgariaNovember 15 to March 1

IX. TiresWinter Tire Regulations1

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1 Regulation (EC) No.1222/2009 of the European Parliament and of the Council and Commission Regulations (EU) No. 228/2011 and (EU) No.1235/2011. Also implemented in Norway, Switzerland, Turkey, Israel. 2 Source: National Highway Traffic Safety Administration (NHTSA).3 Source: Japan Automobile Tyre Manufacturers Association (JATMA).4 Source: South Korean Ministry of Knowledge Economy (MKE).5 Source: National Institute of Metrology, Quality and Technology (INMETRO).

› Mandatory since November 2012

› Applies to all tires sold› Information to be shown:

rolling resistance (fuel efficiency), wet grip (braking performance on wet roads) and noise performance (external rolling noise). Either directly on the tire by means of a label or in some other way

› Self-certification policy › EU member states are

responsible for market surveillance

› Final decision pending› The NHTSA Tire Fuel

Efficiency Consumer Information Program proposes to inform consumers about the effect of tires on fuel efficiency, safety, and durability

› The program aims to implement a national tire fuel efficiency rating system for replacement tires, with the information provided to consumers at the point of sale and online

Label proposed by NHTSA2

› Voluntary since 2010› Introduced by JATMA3

› Applies to replacement summer tires for passenger cars; includes information on rolling resistance and wet grip performance

› Tires with a grading of A and above for rolling resistance performance are defined as “fuel efficient tires” and are marked with an additional symbol (the lower of the symbols above)

› Mandatory since November 2012

› Introduced by MKE4

› Applies to all tires sold in South Korea (OE and replacement) for passenger cars and light trucks; includes information on rolling resistance and wet grip performance

› The label has to be attached to the tread of each tire; for OE tires the information has to be provided in the car manual

› Registration of all products required

› Available as of April 2015› Mandatory as of

October 2016› Introduced by INMETRO5

› Applies to all tires sold (with certain exceptions). Includes information on rolling resistance, wet grip andnoise performance

› Certification to be carried out by a product certification body accredited by INMETRO

IX. TiresTire Labeling Initiatives in Europe, USA, Japan, South Korea and Brazil

EU1 USA2 Japan3 South Korea4 Brazil5

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

› Mandatory since November 2015 (truck tires as of Nov. 2016)

› Applies to all replacement tires

› Information to be shown: rolling resistance (fuel efficiency) and wet grip (braking performance on wet roads)Directly on the tire by means of a label

› Registration of all products required

› Voluntary as of 2017› Introduced by CRIA3

› Applies to all replacement tires for passenger cars

› Information to be shown: rolling resistance (fuel efficiency), wet grip (braking performance on wet roads) and noise performance (external rolling noise)

› Mandatory since January 2016 (light truck and truck tires as of Jan. 2017)

› Applies to all replacement tires

› Information to be shown: rolling resistance (fuel efficiency) and wet grip (braking performance on wet roads)Directly on the tire by means of a label

› Registration of all products required

IX. TiresTire Labeling Initiatives in Gulf Countries and China

Saudi Arabia1 China3Gulf Countries2

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Europe2

North America

ContinentalGoodyear/Sumitomo3

Michelin

Bridgestone/FirestoneGoodyearMichelin

Market share of all suppliers other than top 3

Other suppliers

ContinentalOther suppliers

IX. Passenger and Light Truck TiresMarket Share for Passenger and Light Truck Tires1 in 2018

Source: Continental estimates.1 Replacement.2 Western and Central Europe including Turkey.3 Dissolving of alliance in October 2015.

Europe2

North America

Bridgestone/FirestoneGoodyear/Sumitomo3

Michelin

Bridgestone/FirestoneGoodyearMichelin

ContinentalOther suppliers

ContinentalOther suppliers

IX. Commercial Vehicle TiresMarket Share for Truck Tires1 in 2018

Source: Continental estimates.1 Replacement.2 Western and Central Europe including Turkey.3 Dissolving of alliance in October 2015.

Market share of all suppliers other than top 3

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IX. Passenger and Light Truck TiresContinental Worldwide PLT Production in 20181

1 W/o Europe.

Mount Vernon

11

(US)

Sumter(US)

3

San Luis Potosí

6

(MX)

Cuenca

2

(EC)Camaçari

8

(BR)

Port Elizabeth

2

(ZA)

0.5

Modipuram(IN)

Alor Star /Petaling Jaya

3

(MY)

Hefei(CN)

9

mn units

IX. Passenger and Light Truck TiresContinental European PLT Production in 2018

Lousado

18

Sarreguemines

10

Aachen

8

Korbach

9

Otrokovice

20

Puchov

15

Timişoara

17

mn units

(PT)

(DE)

(FR)

(RO)

(CZ) (SK)

Kaluga

(DE)

(RU)

3

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IX. Commercial Vehicle TiresContinental Worldwide Truck Tire Production1 in 2018

Mount Vernon(US)

3.2

Cuenca

0.2

(EC)Camaçari

(BR)

0.7

Otrokovice(CZ)

1.5Puchov

(SK)

2.9

0.6

Modipuram(IN)

Petaling Jaya

0.1

(MY)

1 Production of bias and radial tires.2 Including TBR & TBX, w/o Retread & CST.

mn units2

IX. TiresCost of Labor at Continental Manufacturing Sites1

Restated base calculation. Not comparable to prior year.1 Based on average currency exchange rates in 2018.

7%12%13%

18%27%

30%33%

37%40%41%

58%59%

70%94%

100%

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

IndiaMalaysia

RussiaChina

RomaniaSouth Africa

BrazilEcuadorSlovakia

Czech RepublicPortugal

MexicoUSA

FranceGermany

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IX. Passenger and Light Truck TiresProduct Mix Improvement

Winter tires worldwide1

(in mn units / year-on-year increase in %)

1 OE and replacement (excl. all-season tires).2 All summer tires and all-season tires with rim sizes of at least 18 inches.

High performance summer tires worldwide2

(in mn units / year-on-year increase in %)

21 22 22 21 22 23 23

0.7% 1.7% 0.7%

-3.0%

2.0% 3.7% 3.4%

2012 2013 2014 2015 2016 2017 2018

13 15 1721

2630

31

24.5%18.1% 13.6%

22.8% 19.1% 16.4%6.0%

2012 2013 2014 2015 2016 2017 2018

IX. Passenger and Light Truck TiresUnit Sales 2013 – 2018

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2013 2014 2015 2016 2017 2018

Europe (incl. rest of world) The Americas Asia / Pacific

142125 128 134

146mn units 145

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IX. Commercial Vehicle TiresUnit Sales 2013 – 2018

0.01.02.03.04.05.06.07.08.09.0

10.0

2013 2014 2015 2016 2017 2018

Europe (incl. rest of world) The Americas Asia / Pacific

8.57.5 7.8 8.2

8.9mn units 9.3

Sustainability at Continental

Market DataAutomotive GroupRubber Group – ContiTech DivisionShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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IX. ContiTechBusiness Units and Key Products

As a technology partner, we offer intelligent

solutions made of rubber and plastic

in combination with metal,

fabric and electronics.

Air Spring Systems Industrial Fluid SolutionsBenecke-Hornschuch Surface Group

Conveyor Belt Group

Mobile Fluid Systems Power Transmission Group Vibration Control

Air Spring Systems in commercial, industrial & rail vehicles, machinery & equipment

Surface materials for vehicle interiors, home decoration and technical solutions

Belts, components and systems for vehicles and many other industries

System supplier of conveyor and special belts with worldwide assembly and maintenance service

Hoses for almost every industrial application and industrial vehicles

Solutions from hose components to complex piping systems for passenger cars and commercial vehicles

Vibration technology and noise insulation in automobiles and many other industries

IX. ContiTechForming a Global Player in Rubber and Plastics Technologies

Top 10 Non-Tire Rubber Companies – 2017 Sales (€ bn)

1

2

3

4

5

6

7

ContiTech Freudenberg(Seals & Vibr.Contr. Tech.)

BridgestoneDiversifiedProducts

Hutchinson Sumitomo Riko TI Fluid Cooper Standard GatesCorporation

NOK(Seal Business)

Trelleborg(excl. tirebusiness)

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

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Mobile Fluid Systems

27%

Benecke-Hornschuch

Surface Group20%

Conveyor Belt Group18%

Power Transmission

Group12%

Industrial Fluid Solutions

10%

Vibration Control6%

Air Spring Systems7%

IX. ContiTechSales Distribution by Business Unit 2018

1

1 Renamed from Benecke-Kaliko Group in June 2017.

IX. ContiTechLocations Worldwide

USA▐ Auburn Hills▐ Fairlawn▐ Halstead▐ Hogansville▐ Houston▐ Lincoln▐ Marysville▐ Mount Pleasant▐ Norfolk▐ Porterdale

Czech Republic▐ Ostrava-Hrabova

France▐ Andrezieux▐ Caluire▐ Villeurbanne

Finland▐ Tampere

India▐ Kolkata▐ Sonepat

Brazil▐ Americana▐ Macaé▐ Ponta Grossa▐ Santana de Parnaiba

China▐ Changchun▐ Changshu▐ Changzhi▐ Changzhou▐ Hangzhou▐ Ninghai▐ Qingdao▐ Sanmen▐ Shanghai (2)▐ Yanzhou▐ Zhangjiagang

Japan▐ Yokohama

South Korea▐ Cheonan (2)▐ Jeonju▐ Yangsan

Germany▐ Aachen▐ Bad Blankenburg▐ Berlin/Hoppegarten▐ Dannenberg▐ Eislingen▐ Hamburg▐ Hanover (3)▐ Hann. Münden▐ Hedemünden

Chile▐ Santiago de Chile

▐ Herbholzheim▐ Hofheim▐ Karben▐ Kohren-Sahlis▐ Korbach▐ Moers▐ Northeim▐ Oedelsheim▐ Oppenweiler

Poland▐ Wągrowiec

Romania▐ Carei▐ Nadab▐ Timişoara

Russia▐ Kaluga

Serbia▐ Subotica▐ Veliki Crljeni

Slovakia▐ Dolné Vestenice▐ Puchov

Slovenia▐ Kranj

Spain▐ Pamplona

Turkey▐ BursaUK▐ Ashington▐ Grimsby▐ Wigan

Greece▐ Vólos

Hungary▐ Makó▐ Nyiregyhaza ▐ Szeged▐ Vác

Australia▐ Bayswater▐ Sydney

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

Canada▐ Granby

South-Africa▐ Pinetown▐ Uitenhage

▐ Rochester Hills, MI▐ Rochester, NH▐ San José▐ Somersworth▐ Spring Hope▐ St. Marys▐ Sun Prairie▐ Valparaiso▐ Winchester

Venezuela▐ Tinaquillo

Mexico▐ Chihuahua▐ Delicias ▐ Mexico City

112 sites for production and R&D in 30 countries. Divisional headquarters in Hanover, Germany.

Malaysia▐ Seremban

Morrocco▐ Jorf Lasfar

VAE▐ Dubai

▐ Montemorelos▐ Monterrey▐ San Luis Potosí (4)

▐ Stolzenau▐ Waltershausen (3)▐ Weißbach▐ Herzogenaurach

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IX. ContiTechKey Figures€ mn 2016 2017 2018Sales 5,462.5 6,246.4 6,344.7EBITDA 730.9 750.9 701.4

in % of sales 13.4 12.0 11.1EBIT 399.2 442.2 396.2

in % of sales 7.3 7.1 6.2EBIT adjusted1 539.8 472.8

in % of sales1 8.7 7.6

Operating assets (average) 2,948.7 3,182.1 3,146.9ROCE 13.5 13.9 12.6

R, D & E expenses (net) 119.7 138.4 149.1in % of sales 2.2 2.2 2.3

Capex2 212.0 213.2 250.2in % of sales 3.9 3.4 3.9

Depreciation and amortization3 331.7 308.7 305.2in % of sales 6.1 4.9 4.8thereof impairment4 37.0 2.4 0.3

IFRS 9 and IFRS 15 applied starting 2018.1 EBIT before amortization of intangible assets from PPA, consolidation and special effects; sales before changes in the scope of consolidation.2 Capital expenditure on property, plant and equipment, and software.3 Excluding impairment on financial investments.4 Impairment also includes necessary reversals of impairment losses.

IX. ContiTechSales by Market

Germany33%

Europe(excluding Germany)

31%

North America12%

Asia16%

Other markets8%

Germany22%

Other markets6% Asia

18%

North America28%

Europe(excluding Germany)

26%

Sales in 2018: €6.3 bnSales in 2013: €3.9 bn

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IX. ContiTechCustomer and Competence Fields

Aerospace Agriculture and Forestry Commercial Vehicles Construction

Energy Food and Beverage Home, Garden and Leisure Material Handling

Mechanical/Plant Engineering Mining Occupational Safety Passenger Cars

Printing Rail Transport Ship, Port and Ocean Two Wheelers

We are experts in a large variety of industries with an understanding for the opportunities of digitalization.

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

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3835

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X. Share and Bond InformationShare Data / ADR Data

1Before October 29, 2018 split was 1:5.

Share Data

Type of share No-par value share

Bloomberg Ticker CON

Reuters Ticker CONG

German Security Identification Number (WKN) 543 900

ISIN DE0005439004

Shares outstanding as at December 31, 2018 200,005,983

ADR Data

Ratio 1:10 (ordinary share : ADRs)1

Bloomberg Ticker CTTAY

Reuters Ticker CTTAY.PK

ISIN US2107712000

ADR Level Level 1

Exchange OTC

Sponsor Deutsche Bank Trust Company Americas

X. Share and Bond InformationShare Price Development vs. Major Stock Indexes

Source: Bloomberg.

0%

200%

400%

600%

800%

1000%

1200%

1400%

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-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Jan-

17

Jan-

18

Jan-

19

Continental DAX EURO STOXX 50 EURO STOXX Automobile & Parts

based on January 1, 1998 = 100% (€ 19.80)

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X. Share and Bond InformationCommon Stock

512 512 512 512 512 512 512 512

200 200 200 200 200 200 200 200

0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016 2017 2018

Common stock (€ mn) Number of shares (mn)

X. Share and Bond InformationShareholder Structure

UK and Ireland25.3%

Germany10.0%

Germany (retail)5.7%

France5.9%Scandinavia

3.2%

Rest of Europe6.7%

USA and Canada26.3%

Asia, Australia

and Africa3.5%

Unidentified13.5%

Free Float

54.0%

IHO-Group46.0%

Shareholder structureas at December 31, 2018

Shareholder structureof the free float

(86.5% identified)as at December 31, 2018

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X. Share and Bond InformationBond Data

Issuer Continental AG Continental AG

Issue Senior Notes Senior Notes

Principal amount €600 mn €750 mn

Offering price 99.410% 99.228%

Rating at issuance date BBB+ (S&P)BBB+ (Fitch)

Ba1 (Moody’s3)BB (S&P)BBB (Fitch1)

Current corporation and bond ratings2 BBB+ (Fitch), BBB+ (S&P), Baa1 (Moody’s3)

Coupon 0.0% p.a. 3.125% p.a.

Issue date December 5, 2016 September 9, 2013

Maturity February 5, 2020 September 9, 2020

Interest payment Not applicable AnnualSeptember 9

WKN A2DARM A1X3B7

ISIN XS1529561182 XS0969344083

Denomination €1,000 with minimum tradable amount €1,000

1 Non-contracted rating at date of issuance.2 Fitch since October 24, 2016; S&P since May 11, 2016; Moodyʼs since June 30, 2015.3 Non-contracted rating since February 1, 2014.

X. Share and Bond InformationDevelopment of the Bonds

Source: Bloomberg.

96

98

100

102

104

106

108

110

112

114

September 2013 September 2014 September 2015 September 2016 September 2017 September 2018

2.5 % March 2017 3.0 % July 2018 3.125 % Sept. 2020 0.5% Feb. 2019 0.0 % Feb. 2020

January 18, 2019

(in %)

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X. Share and Bond InformationDividend, Earnings per Share and Payout Ratio

1 Dividend for FY 2018 subject to approval of the Annual Shareholders’ Meeting (ASM) on April 26, 2019.2 Dividend paid for the respective fiscal year, payout in the subsequent year.

2.25 2.503.25 3.75 4.25 4.50 4.75

9.53 9.62

11.88

13.64 14.0114.92 14.49

23.6% 26.0% 27.4% 27.5% 30.3% 30.2%32.8%

2012 2013 2014 2015 2016 2017 2018

Dividend per share (€) Earnings per share reported (€) Payout ratio2

1

1

X. Share and Bond InformationDevelopment of Continental’s Credit Rating

1 Contracted rating since May 19, 2000.2 Non-contracted rating since February 1, 2014.3 Contracted rating since November 7, 2013.

BBB+ / Baa1

BBB / Baa2

BBB- / Baa3

BB+ / Ba1

BB / Ba2

BB- / Ba3

B+ / B1

B / B2

S&P, Fitch / Moody’s Standard & Poor’s1 Moody’s2 Fitch3

Before Siemens VDO N

on-In

vest

men

t G

rade

Inve

stm

ent

Gra

de

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X. Share and Bond Information10 Year Financial Overview

1 Since 2018, IFRS 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers, have been applied. 5 As a percentage of sales.2 IAS 19 (revised 2011), Employee Benefits, has been applied since 2012. 6 Excluding impairment on financial investments.3 Including non-controlling interests. 7 Subject to the approval of the Annual Shareholders’ Meeting on April 26, 2019.4 Capital expenditure on property, plant and equipment, and software.

20181 2017 2016 2015 2014 2013 20122 2011 2010 2009Balance sheetNon-current assets € mn 23,658.7 22,038.4 21,321.0 19,666.6 16,923.3 15,569.5 15,685.7 15,075.5 14,887.9 14,724.6Current assets € mn 16,786.7 15.402.1 14,853.9 13,169.1 13,317.8 11,251.3 11,764.4 10,962.9 9,502.6 8,324.6Total assets € mn 40,445.4 37,440.5 36,174.9 32,835.7 30,241.1 26,820.8 27,450.1 26,038.4 24,390.5 23,049.2Shareholders’ equity (excl. non-controlling interests) € mn 17,850.4 15,828.4 14,270.0 12,786.3 10,672.1 9,011.2 7,779.0 7,146.1 5,859.6 3,772.6Non-controlling interests € mn 482.9 461.9 464.8 427.6 352.5 311.0 377.4 397.2 343.3 289.1Total equity (incl. non-controlling interests) € mn 18,333.3 16,290.3 14,734.8 13,213.9 11,024.6 9,322.2 8,156.4 7,543.3 6,202.9 4,061.7Equity ratio3 % 45.3 43.5 40.7 40.2 36.5 34.8 29.7 29.0 25.4 17.6Capital expenditure4 € mn 3,124.4 2,854.4 2,593.0 2,178.8 2,045.4 1,981.1 2,019.4 1,711.3 1,296.4 860.1Net indebtedness € mn 1,661.3 2,047.6 2,797.8 3,541.9 2,823.5 4,289.3 5,319.9 6,772.1 7,317.0 8,895.5Gearing ratio % 9.1 12.6 19.0 26.8 25.6 46.0 65.2 89.8 118.0 219.0Income statementSales € mn 44,404.4 44,009.5 40,549.5 39,232.0 34,505.7 33,331.0 32,736.2 30,504.9 26,046.9 20,095.7Share of foreign sales % 80.1 79.7 79.3 78.6 76.6 76.2 75.4 73.7 72.8 71.0Cost of sales5 % 75.0 74.2 73.4 74.1 74.9 76.6 78.3 79.0 77.8 80.0Research and development expenses (net)5 % 7.2 7.1 6.9 6.2 6.2 5.6 5.3 5.3 5.6 6.7Selling and logistics expenses5 % 5.6 5.5 5.6 5.6 5.3 5.0 4.8 4.7 5.0 5.6Administrative expenses5 % 2.6 2.6 2.5 2.4 2.2 2.1 2.0 2.1 2.5 3.0EBITDA € mn 6,235.7 6,678.9 6,057.4 6,001.4 5,133.8 5,095.0 4,967.4 4,228.0 3,587.6 1,591.2EBITDA5 % 14.0 15.2 14.9 15.3 14.9 15.3 15.2 13.9 13.8 7.9Personnel expenses € mn 11,125.3 10,687.3 9,695.7 9,164.6 7,757.2 7,124.5 6,813.7 6,354.3 5,891.7 5,199.8Depreciation and amortization6 € mn 2,208.0 2,117.4 1,961.6 1,885.8 1,789.0 1,831.3 1,781.2 1,631.1 1,652.4 2,631.6Net income attributable to the shareholders of the parent € mn 2,897.3 2,984.6 2,802.5 2,727.4 2,375.3 1,923.1 1,905.2 1,242.2 576.0 -1,649.2Dividend and earnings per shareDividend for the fiscal year € mn 950.07 900.0 850.0 750.0 650.0 500.0 450.0 300.0 — —as at December 31 € mn 200.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0 169.0Net income (per share) attributable to the shareholders of the parent € 14.49 14.92 14.01 13.64 11.88 9.62 9.53 6.21 2.88 -9.76EmployeesAnnual average tsd 242.8 230.7 216.0 204.7 186.0 175.4 169.0 159.7 142.7 133.4

Sustainability at Continental

Market DataAutomotive GroupRubber GroupShare and Bond InformationGlossary

Continental at a GlanceI.Continental StrategyII.Automotive TrendsIII.

IV.

VII.VIII.IX.X.XI.

Topics

Corporate GovernanceV.Continental CorporationVI.

9152028

4246678691

3835

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XI. GlossaryFinancial Glossary

ADR American Depositary ReceiptCapex Capital expenditure on property, plant and equipment, and softwareEBIT Earnings Before Interest and TaxesEBIT adjusted EBIT before amortization of intangibles from PPA, consolidation and special effectsEBITDA EBIT before Depreciation and AmortizationEBIT margin EBIT as a percentage of salesEBITDA margin EBITDA as a percentage of salesFCF The sum of cash flow arising from operating activities and cash flow arising from investing activities. Also referred to as

cash flow before financing activities.Gearing ratio Net indebtedness divided by equity. Also known as the debt to equity ratio.ISIN International Securities Identification NumberNet indebtedness The net amount of interest-bearing financial liabilities as recognized in the statement of financial position, the positive fair

values of the derivative instruments, cash and cash equivalents, as well as other interest-bearing investments.NIAT Net Income Attributable to the shareholders of the parentOA The assets less liabilities as reported in the balance sheet, without recognizing the net indebtedness, sales of accounts

receivable, deferred tax assets, income tax receivables and payables, as well as other financial assets and debts. Average operating assets are calculated as at the end of the quarterly periods and, according to our definition, correspond to the capital employed.

PPA Purchase Price AllocationR, D & E expenses Research, Development and Engineering ExpensesROCE (average) Return On Capital Employed. We define ROCE as the ratio of EBIT to average operating assets for the fiscal year.

XI. GlossaryProduct and Division Glossary

ABS Anti-Lock Brake SystemACC Adaptive Cruise ControlADAS Advanced Driver Assistance SystemsCAGR Compound Annual Growth RateC&S Chassis & Safety Division CT ContiTech Division CV Commercial VehicleCVT Commercial Vehicle Tires ECU Electronic Control UnitEBS Electronic Brake SystemESC Electronic Stability Control E2E End to EndFDG Full Digital ClusterHEV Hybrid Electric VehicleHMI Human Machine InterfaceHUD Head Up Display

I Interior Division IAM Intelligent Antenna ModuleLT Light TruckNVH Noise Vibration HarshnessOCB Optimized Curve BreakOLED Organic Light Emitting DiodeOTA Over The AirPC Passenger CarPLT Passenger and Light Truck TiresPT Powertrain Division RV Recreational VehicleSSR Self-Supporting Runflat TiresSUV Sport Utility VehicleTCS Traction Control SystemTPMS Tire Pressure Monitoring SystemV2X Vehicle-to-everything

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ContactEquity and Debt Markets Relations

Vahrenwalder Str. 930165 HanoverGermany

E-mail: [email protected]: +49 511 938 1080 www.continental-ir.com

Michael SaemannAnalysts, Institutional Investors and Sustainability Investors

Phone: +49 511 938 1307E-mail: [email protected]

Marvin KalberlahAnalysts, Institutional Investors Social Media

Phone: +49 511 938 14034E-mail: [email protected]

Christopher MackeAnalysts, Institutional Investors

Phone: +49 511 938 1062 E-mail: [email protected]

Klaus PaeslerAnalysts, Institutional Investors, ADR and Private Investors

Phone: +49 511 938 1316 E-mail: [email protected]

Sabine ReeseSustainability, ASM, CMD Organization, IR Website, Capital Market Disclosure Requirements

Phone: +49 511 938 1027 E-mail: [email protected]

Bernard WangHead of IR

Phone: +49 511 938 1068E-mail: [email protected]

Jana CrossAssistant to the Head of IRRoadshow and Conference Organization

Phone: +49 511 938 1163E-mail: [email protected]

2019Preliminary figures for fiscal 2018 January 14, 2019

Annual Financial Press Conference March 7, 2019

Annual Shareholders’ Meeting (incl. key data for Q1 2019) April 26, 2019

Q1 Financial Report May 9, 2019

Half Year Financial Report August 6, 2019

Nine Month Financial Report November 12, 2019

2020Preliminary figures for fiscal 2019 January 2020

Annual Financial Press Conference March 2020

Annual Shareholders’ Meeting (incl. key data for Q1 2020) April 30, 2020

Q1 Financial Report May 2020

Half Year Financial Report August 2020

Nine Month Financial Report November 2020

Financial Calendar

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Continental Aktiengesellschaft

Investor Relations

P.O. Box 169, 30001 Hanover, Germany

Vahrenwalder Str. 9, 30165 Hanover, Germany

Phone +49 511 938-1163, Fax +49 511 938-1080

E-mail [email protected]

www.continental-ir.com