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Schaeffler Capital Market PresentationSeptember 2015

2

Schaeffler at a glance

Mobility for tomorrow

Financial Results H1 2015

Agenda

123

Schaeffler Group | Capital Market Presentation | September 2015

This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect","intend", "may", "plan", "project“, "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about Schaeffler Group's beliefs andexpectations and the assumptions underlying them. These statements are based on plans, estimates and projections asthey are currently available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of thedate they are made, and Schaeffler Group undertakes no obligation to update any of them in light of new information orfuture events.By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on SchaefflerAG management's current expectations and are subject to a number of factors and uncertainties that could cause actualresults to differ materially from those described in the forward-looking statements. Actual results may differ from those setforth in the forward-looking statements as a result of various factors (including, but not limited to, future global economicconditions, changed market conditions affecting the automotive industry, intense competition in the markets in which weoperate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and otherconditions affecting our markets, and other factors beyond our control).This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal withall aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers,employees or advisers nor any other person makes any representationor warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of theinformation contained in the presentation or of the views given or implied. Neither Schaeffler Group nor any of its directors,officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or anyloss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising inconnection therewith.The material contained in this presentation reflects current legislation and the business and financial affairs of SchaefflerGroup which are subject to change.

Disclaimer


Europe57%Americas

20%

Greater China13%

Asia/Pacific10%

IndustrialOEM16%

Sales by region (2014)

1)

1) EMEA, Russia and India2) China, Hong Kong and Taiwan

Schaeffler at a glance

Leading integrated automotive and industrialsupplier of high-precision components and systemsGlobal footprint with around 84,000 employees atabout 170 locations in more than 50 countriesAbove industry average revenue growth andprofitability

Sales by division (2014)

Key financials(in EUR mn unless otherwise indicated)

AutomotiveOEM61%

2)IndustrialAftermarket

10%

AutomotiveAftermarket

13%

1 Schaeffler at a glance

Leading integrated automotive and industrial supplier


77%23%

2014 H1 2015Sales 12,124 6,732

% growth (y-o-y) 8.2% 12.4%

EBITDA 2,172 1,161

% margin 17.9% 17.2%

EBIT 1,523 818

% margin 12.6% 12.2%

EBIT margin (Automotive) 13.7% 12.8%

EBIT margin (Industrial) 9.2% 10.3%

2)


Strong track record of above-average growth and profitability


8.39.0 8.9

7.3

9.5

10.711.1 11.2

12.112.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 LTMH1 15

Development of EBIT and EBIT margin 2006 – LTM 2015in EUR bn

Development of sales 2006 – LTM 20151)

in EUR bn

CAGR +5%

4.7% 8.4% -1.2% -17.6% 29.4% 12.6% 4.0% 0.7% 8.2% 11.1%

Sales growth (y-o-y)

12.9% 12.6% 11.7% 6.1% 15.9% 16.2% 13.2% 12.4% 12.6% 12.0%

EBIT margin2)

1.1 1.11.0

0.4

1.5

1.7

1.5

1.0

1.5 1.5

1.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 LTMH1 15

1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH) 2) Before provision for EU antitrust fine of EUR 380 mn

Valve traincomponents

Torqueconverter

Rollingbearings

Strutbearings

Ball screw drives forsteering systems

Wheel bearings

Roll stabilizerBalancer shaft

Thermo-management

Belt & Chaindrive systems

Variablecamshaft timer


Leader for critical components and systems in automotive

Engine systems

Transmission systems

Chassis systems



Leading bearing supplier to over 60 industrial sectors


Yoke typeand stud typetrack rollers Axial/radial

roller bearings with anoutside diameterof up to 4,250 mm(up to 12,000 mm availableon special request)

Smallestball bearingwith a 1 mminside diameter

SphericalplainbearingsCylindrical

roller bearingswith disc cage

Radial insertball bearings

Needlerollerbearings

Linear guidance systems

MainspindlebearingsSpherical

rollerbearings

Taperedrollerbearings

Cage-guidedcylindricalrollerbearings

Directdrives

Rotary tablebearings withmeasuringsystem

Enginebearings

Activemagneticbearings

Housings

Integrated global manufacturing and R&D footprint1 Schaeffler at a glance


w Antingw Nanjingw Suzhouw Taicang (3)w Yinchuan (2)

Global footprint

Europe Americas Greater China Asia/Pacific Total

48 14 7 5 74

R&D Centers 9 4 1 2 16

Manufacturing sites

Europe

Mexicow Irapuatow Puebla

Europe

Canadaw Stratford (2)

Brazilw Sorocaba (2)

South Africaw Port Elizabeth w Hosur

w Punew Vadodara (2)

India

Vietnamw Bien Hoa City

Thailandw Rayong

w Ansanw Changwonw Jeonju

South Korea

China

Japanw Yokohama

USw Cheraw (2)w Danburyw Fort Mill (2)w Joplinw Spartanburg

Troyw Wooster

Germanyw Bühlw Herzogenaurachw Homburg (3)w Schweinfurt (2)w + 17 other

German sites

Great Britainw Llanelliw Plymouthw Sheffield

Czech Republicw Lanskroun

Francew Calaisw Chevillyw Haguenau (2)

Spainw Elgoibar

Portugalw Caldas da Rainha

Italyw Momo

Switzerlandw Romanshorn

Austriaw Berndorf-St. Veit

Romaniaw Braşov

Hungaryw Debrecenw Szombathely

Slovakiaw Kysucké Nové Mestow Skalica

Russiaw Uljanowsk

8

9

Quality, Technology and Innovation – More than 2,500 new patents in 20141 Schaeffler at a glance

# 4 # 4 # 4 # 2

Rank in Germany

# 2

1,641

2,518

2014

1,854

20112010

2,100

2012 2013

1,832

4More than 50 quality awards received in 20144 General Motors recognized 24 Schaeffler plants

with "Supplier Quality Excellence Award 2014“4Murakami Seiki recognized Schaeffler China with

"Excellent Quality Award“ for outstanding productquality and service

GM SupplierExcellence Award

Murakami SeikiQuality Award

Number of new patent registrations in Germany1)

Quality Innovation


10

Long-term growth from “Mobility for tomorrow”2 Mobility for tomorrow


… and in IndustrialOffering solutions in Automotive…

4 focus areasKey mega trendsEco-friendly drives1

Interurban mobility3

Urban mobility 2

Energy chain 4

u Urbanizationu Population growth

Society trends

u Increasing complexityu Digitalization

Technology trends

u Renewable energiesu Availability of resources

Environmentaltrends

u Globalizationu Affordability

Economic trends

80

115

150

185

220

2000 2005 2010 2015 2020 2025

gCO

2/km

EU: 95gin 2020

US: 97gin 2025Japan: 122g in

2020

China: 117g in20201)

Combustion engine dominant but will be further electrified...

Eco-friendly drives to increase energy efficiency and reduce CO2 emissions2 Mobility for tomorrow

…to meet CO2 reduction targets

Source: University of Duisburg-Essen, 2012

CO2 legislation enacted worldwidePowertrain concepts

Meeting stringent US 2025 emission targets already today…

Locally developedtechnologies to meetspecific NA fueleconomy demandsand customerrequirements

Economical solutionsachieve 44%improvement in fueleconomy and meet2025 CAFE standards

Technology Improvement (in %)2)

Valve train friction optimization 0.5Balance shaft bearings 0.5Thermal management module 1.0Engine start-stop 3.5AWD disconnect 5TC with optimized damper 1.0Low rolling resistance tires 3.5Ride height adjustment 2.6Transmission Driven Accessories –48V hybrid system 26

Total ~44

2) Denotes fuel reduction potential in %

1) Proposed 2020 targetsSource: icct (November 2014)

98%80%

56%

2%

19%

35%

1%9%

2013 2020 2030

Combustion engine Hybrids Electric

…through comprehensive offering of fuel reduction technologies


1


Mobility and energy chain2 Mobility for tomorrow

Urban mobility2

19905.3bn people

10 megacities (> 10 mn people)

20258.0bn people

37 megacities

Population growth and urbanization

Schaeffler solution

E-bikes /E-scooters

New Energy Vehicles(NEVs)

Source: United Nations, The 2011 Revision

Interurban mobility3

Chinese cities connected by high-speed trains

Mechatronic functions in axlebox bearings

Energy chain4

Global investments in new power plantsand infrastructure 2011 – 2020

Wave power Wind power

Source: Morgan Stanley Research (15-May-11): China High-Speed Rail; On theEconomist Fast Track

Source: International Energy Agency (2011): World EnergyOutlook.

Schaeffler solution Schaeffler solution

Power grids44%(Infrastructure)

Coal12%

Gas6%

Oil 1%Nuclear 6%

Wind 12%

Water 8%

Solar PV 7%Other Regenerative 4%

13

Overview key financials H1 20153 Financial Results H1 2015

1) Prior year figure as per December 31, 20142) Includes EU-antitrust fine of EUR 371 mn paid in June 20143) Net financial debt excl. shareholder loans to LTM EBITDA ratio

in EUR mn H1 14 H1 15 H1 15vs. H1 14 Q2 14 Q2 15 Q2 15

vs. Q2 14

Sales 5,990 6,732 +12.4% 3,014 3,387 +12.4%

EBITDA 1,113 1,161 +4.3% 541 557 +3.0%

EBITDA margin 18.6 17.2 -1.4%-pts. 17.9 16.4 -1.5%-pts.

EBIT 801 818 +2.1% 383 384 +0.3%

EBIT margin 13.4 12.2 -1.2%-pts. 12.7 11.3 -1.4%-pts.

Net income 210 309 +99 mn -10 142 +152 mn

Capex 298 501 +203 mn 143 257 +114 mn

Capex ratio 5.0 7.4 +2.4%-pts. 4.7 7.6 +2.9%-pts.

Free cash flow -3252) -72 +253 mn -3062) -12 +294 mn

Net debt1) 5,778 6,245 +467 mn 5,778 6,245 +467 mn

Leverage ratio1) 3) 2.7 2.8 2.7 2.8 –


14

Sales H1 2015 up 12.4%3 Financial Results H1 2015

Q3

3,387

Q4

3,3453,1003,034

Q1

3,014

Q2

2,976

Q2Q1

2014 2015

Gross profit margin in %

1) Includes positive FX effects of 7.5%

6,732

Salesin EUR mn

54%22%

14%

10%

Americas+26% (+12%)

Greater China+35% (+12%)

Europe+3% (+2%)

Asia/Pacific+12% (-1%)

H1 2015 sales by regionY-o-y growth (w/o FX effects)

H1 2015 sales by divisionY-o-y growth

H1 14 H1 15 y-o-ygrowth

excl. FXeffects

Automotive 4,439 5,064 14.1% 6.9%

Industrial 1,551 1,668 7.5% -0.8%

Total 5,990 6,732 12.4% 4.9%

28.7 27.7 28.9 27.5

28.2

28.3 28.0

28.1

5,990 6,134

+12.4%1)

vs H1 2014


15

Automotive division again strongly outperforms market3 Financial Results H1 2015

Sales development Automotive (w/o FX effects) Sales splitY-o-y growth (w/o FX effects)

Key aspects4 Engine Systems: Ramp-up of new Thermal

Management Module; Strong demand for valve traincomponents (e.g. for UniAir engine)

4 Transmission Systems: Significant growth with TorqueConverters (automatic transmission) and Dual MassFly Wheels

4 Chassis Systems: Strong demand for 3rd generation ofwheel bearings compensates weakness in SouthAmerica and Asia/Pacific

4 Automotive Aftermarket: Strong demand for servicekits in Europe and Americas in second quarter

42%

26%

15%

17%

Engine Systems+18% (+8%)

Chassis Systems+9% (+3%)

Transmission Systems+15% (+7%)

Automotive Aftermarket+13% (+10%)Europe

+3%

Asia/Pacific

+2%

-6%

+13%

+5%

Production of light vehiclesH1/2015 vs H1/2014(IHS Automotive)

+17%

-1%

Americas

+3%

World production : +0.8%Schaeffler Automotive: +6.9%

(w/o FX effects)

Sales growth (w/o FX effects)Schaeffler AutomotiveH1/2015 vs H1/2014

Greater China


16

Industrial division with mixed development across sectors3 Financial Results H1 2015

Key aspects

4 Industrial OEM business with mixed developmentacross sectors

4Mobility: FX-adjusted sales downOrganic growth in Railway and Motorcycle sectorOff-highway equipment (esp. agriculture) remains underpressure

4 Production Machinery: FX-adjusted sales downSlight decrease in tooling machineryTextile and printing machinery remain weak

4 Energy and Raw Materials: FX-adjusted sales upPositive development in renewable energy sector(especially Wind) in Europe and Greater ChinaStabilization in Heavy Industries on a low level but noquick recovery expected

4 Aerospace: FX-adjusted sales slightly down

4 Industrial Aftermarket: FX-adjusted sales slightly up

Sales development Industrial

Sales split

IndustrialAftermarket ~36%

Mobility

Energy and Raw Material

Production Machinery

Aerospace

IndustrialApplications ~64%

H1 14 H1 15 D D excl.FX effects

994 1,063 6.9% -1.4%

557 605 8.6% 0.2%

1,551 1,668 7.5% -0.8%

IndustrialApplications

IndustrialAftermarket

Total


17

EBIT margin H1 2015 12.2%3 Financial Results H1 2015

384434

293

429383

418

Q2Q1Q4Q3Q2Q1

2014 2015EBIT margin in %

818

EBITin EUR mn

14.0 12.7 14.1 9.5 13.0 11.3

801 722

H1 14 H1 15 D H1 14margin

H1 15margin

Din %-pts.

627 647 +3.2% 14.1% 12.8% -1.3

174 171 -1.7% 11.2% 10.3% -0.9

801 818 +2.1% 13.4% 12.2% -1.2

EBIT by divisionin EUR mn

Automotive

Industrial

Total

Key aspects

H1 15 EBIT margin down by 1.2%-points mainly due to:

4 Reduced gross profit margin in Industrial business(-0.5%-pts), mainly due to sales mix effects

4 Increase in R&D and selling expenses on group level(-0.4%-pts)

4 One-off items from antitrust cases (-0.4 %-pts)

+2.1%vs H1 2014

13.4 11.8 12.2


18

Financial Result H1 2015 EUR -337 mn3 Financial Results H1 2015

161176

23

122

375

100

Q2Q1Q4Q3Q2Q1

2014 2015

337

Financial result1)

in EUR mn

1) For presentation purposes negative results are shown as positive figures2) Including non-cash valuation effects of EUR 106 mn from refinancing transaction in Q2 2014

Reconciliation Financial Resultin EUR mn

One-offeffects

refinancingQ2 2015

142

Non-cashvaluation

effects loans /bonds

-184

-11

H12015

as reported

H1 2015excl. one-offs andvaluation effects

337

EUR -138 mnvs H1 2014

475 14523

in EUR mn H1 14 H1 15 D

Cash interest 112 132 20

Accrued interest 54 33 -21

Other 74 -23 -97

Financial Result excl. one-offsand valuation effects 240 142 -98

Non-cash valuation effects 0 11 11

One-off effects refinancing 2352) 184 -51

Reported Financial Result 475 337 -138


19

Net income H1 2015 EUR 309 mn3 Financial Results H1 2015

142

167

215229

-10

220

Q2Q1Q4Q3Q2Q1

2014 2015

309

Net income1)

in EUR mn

210 444

1) Attributable to the shareholders of the parent company

Reconciliation of net incomein EUR mn

13853 309

210

H1 2015Δ Minorities

3

Δ TaxesΔ FinancialResult

Δ EBIT

17

H1 2014

Key aspects

4 Net income increased by EUR 99 mn vs H1 20144 Improved financial result leads to higher net income


20

Free cash flow EUR -72 mn3 Financial Results H1 2015

238184

490439

134

Q2Q1Q4Q3Q2

-1632)

Q1

422-29 929

2014 2015

Free cash flow H1 2015in EUR mn

Operating cash flowin EUR mn

Free cash flowin EUR mn

-19

238

135

-60-12

Q1Q4Q3Q2-3062)

Q2Q1

2014 2015

-72-325 373

-72

501

233

166

2

1731)

158

1,161

Free cashflow

OtherCapexΔWorkingCapital

EBITDA TaxInterest

2) Includes EU-antitrust fine of EUR 371 mn paid in June 20141) One-off effect from refinancing transaction in Q2 2015


21

Working Capital improved – Capex on track3 Financial Results H1 2015

257244

357

202

143155

Q2Q1Q4Q3Q2Q1

2014 2015

In % of sales

1) Cash view

501

Capex1)

in EUR mn

5.2 4.7 6.7 11.5

7.1

7.3 7.6

7.4

298 559

Q2

2,944

Q1

3,022

Q4

2,548

Q3

2,900

Q2

2,778

Q1

2,696

2014 2015

In % of sales

23.6 24.0 24.6 21.0 24.2 22.9

Working capitalin EUR mn


22

Leverage ratio as of June 30, 2015 2.8x3 Financial Results H1 2015

6,2456,1905,7785,7685,7555,529

Q2Q1Q4Q3Q2Q1

2014 2015

Gross debt

Net financial debtin EUR mn

5,751 6,226 6,443 6,414 6,799 6,665

Cash & cash equivalents

222 471 675 636 609 420

Leverage ratio (Net financial debt w/o shareholder loans / LTM EBITDA)

Change in net financial debtin EUR mn

223216 202 36 6,245

H1 2015OtherBondrefinancing2)

RepaymentTerm Loan1)

Δ CashPosition

FX effectQ4 2014

5,778

2.6 2.7 2.6 2.7 2.8 2.8

-210

1) EUR 210 m voluntary prepayment of institutional term loans(EUR 125 m for OpCo and EUR 85 m for Intercompany loan to HoldCo)

2) The value of the bonds issued in April exceeds the value of the redeemed bonds.

Key aspects

4 Net financial debt significantly impacted by FX effects(high portion of US denominated debt)

4 Partial repayment of institutional loans (USD andEUR tranche) on June 30, 2015

4 Leverage ratio stable


23

InnovationQuality

ProfitabilityGrowth

Guidance 20153 Financial Results H1 2015

Employees

Capex Free cash flow

Innovation~3,000 new jobs

6-8% of sales Sustainably positive

Maintain leading positionin patent applications

Sales growth 4-5%1) EBIT margin 12-13%2)

Quality policy Further improve R&D expenses 5% of sales

1) At constant currency


2) Does not include restructuring provisions for CORE

24

Financial calendar 2015

Results 9M 2015 November 19, 2015Results FY 2015 March 15, 2016

Investor Relations

phone: + 49 9132 82 4440fax: + 49 9132 82 4444Email: [email protected]: www.schaeffler.com/ir

IR contact


25

Overview of current corporate and financing structureBackup

Current structure Financing structure (as of June 2015)

Debt instrument Nominal Interest Maturity Rating

Loans:

Scha

effle

rHol

ding

HoldCo Term Loan (EUR) 500 E+4.50% Oct-19 Not ratedHoldCo RCF (EUR 200 mn) - E+4.50% Oct-19 Not rated

Bonds:6.875% SSNs 2018 (EUR)5) 800 6.875% Aug-18 B1 / B6.875% SSNs 2018 (USD)5) 1.000 6.875% Aug-18 B1 / B6.25% SSNs 2019 (USD)5) 475 6.25% Nov-19 B1 / B5.75% SSNs 2021 (EUR)5) 350 5.75% Nov-21 B1 / B6.75% SSNs 2022 (USD)5) 675 6.75% Nov-22 B1 / B

Loans:

Scha

effle

rGro

up

Senior Term Loan B (EUR) 675 E6)+3.50% May-20 Ba2 /BB-Senior Term Loan B (USD) 1.150 L6)+3.50% May-20 Ba2 /BB-Senior RCF (EUR 1,000 mn) - E+2.75% Oct-19 Not rated

Bonds:

4.25% SSNs 2018 (EUR) 600 4.25% May-18 Ba2 / BB-2.75% SSNs 2019 (EUR) 500 2.75% May-19 Ba2 / BB-3.25% Unsec.Ns 2019 (EUR) 500 3.25% May-19 B1 / B2.50% SSNs 2020 (EUR) 400 2.50% May-20 Ba2 / BB-4.75% SSNs 2021 (USD) 850 4.75% May-21 Ba2 / BB-4.25% SSNs 2021 (USD) 700 4.25% May-21 Ba2 / BB-3.50% SSNs 2022 (EUR) 500 3.50% May-22 Ba2 / BB-4.75% SSNs 2023 (USD) 600 4.75% May-23 Ba2 / BB-3.25% SSNs 2025 (EUR) 600 3.25% May-25 Ba2 / BB-

SchaefflerHolding

Finance B.V.

SchaefflerBeteiligungs-

holding

100%

SchaefflerVerwaltung Zwei

GmbH

SchaefflerVerwaltungs

GmbH

100%

Continental AGSchaeffler AGOpCo

Loans

100%

SchaefflerFinance B.V.

OpCo

Bonds

54.0%

Freefloat

10.0%83.3%

TopCo

HoldCo

OpCo

HoldCo

Bonds

HoldCo

Loans

36.0%

SchaefflerTechnologies

AG & Co. KG

100%

100%

INA-Holding SchaefflerGmbH & Co. KG

Schaeffler HoldingGmbH & Co. KG

16.7%

Guarantee1)

IC LoanEUR 986m+ EUR 270m2)4)

IC LoanEUR 629m3)4)

1) Schaeffler Beteiligungsholding guarantee and Schaeffler Verwaltung Zwei GmbH guaranteeremains in place until Schaeffler requests a guarantee fall-away event. Since the redemption ofthe 2017 bonds, this guarantee fall-away is at the sole discretion of Schaeffler.

2) Loan receivables resulting from capital increase in Dec. '14 (EUR 986m) and residual from previouscash management between Schaeffler AG and Schaeffler Verwaltung Zwei GmbH (EUR270m)3) Loan receivable resulting from capital increase in Dec. '144) Secured by share pledges of 20.4m shares of Continental AG5) Senior Secured PIK Toggle Notes 6) Floor of 0.75 %


26

Overview permitted upstream paymentsBackup

Current structure Financing structure (as of June 2015)1)

OpCo Loan PermittedUpstream Payments

Schaeffler AG

SchaefflerVerwaltungs

GmbH

36% Contidividend

INA HoldingSchaeffler GmbH

& Co. KG

Chart simplifiedfor illustration

purposes

SchaefflerVerwaltung Zwei

GmbH

OpCo Bond PermittedUpstream Payments

HoldCo

BondOpCo

UpstreamCash

Payment

OpCo

10% Contidividend

1) Annual Floor Amount for the financial year 2015 pursuant to Schaeffler AG loan agreement dated27 October 2014 without carry forward amount.2) Permitted Upstream Payments for the financial year 2015 pursuant to the bond indentures ofSchaeffler AG.

LoanOpCo

UpstreamCash

Payment

4 Permitted Upstream Payments in OpCo loan andbond documents allow OpCo cash to be upstreamedeach year, providing material cash interest coverageon HoldCo level

4 Different restricted groups for OpCo loans and OpCobonds define different permitted upstreampayments

4 HoldCo has access to dividends from 46.0% of allContinental shares

4 As per 30 June 2015, the cash balance at SchaefflerVerwaltungs GmbH was EUR 3.1 mn

in EUR mn Q1 Q2 H1 2015

Free Cash Flow OpCo -60 -12 -72

Cash upstream payments Schaeffler AGPermitted upstream payments 20151)

16 254 270325

Cash upstream payments SchaefflerVerwaltung Zwei GmbHPermitted upstream payments 20152)

30 31 61

425

OpCo upstream cash payments

A

B

A

B


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