[PPT] - Roadshow Presentation March 2018 Ticker: CON ADR-Ticker: CTTAY PowerPoint Presentation

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Roadshow Presentation

March 2018

Ticker: CON ADR-Ticker: CTTAY Twitter: @Continental_IR http://www.continental-ir.com

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Agenda

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Electrification 4 9 Corporation Highlights 2017 1 3 Automotive Trends 2 4 Key Enabler: Digitalization 3 6 Automated Driving 5 12

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ContiTech – Smart Solutions Beyond Rubber 8 23 Holistic Connectivity 6 17 Tires: No Disruption but Evolution 7 20 Continental Strategy – Outlook 2020 and Beyond 9 25 Continental Outlook 2018 10 26 Back-up FY 2017 Presentation 11 33

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› Sales up by 8.5% to €44.0 bn; organic sales growth at 8.1%; FX negative at €435 mn ›

Adj. EBIT1 up by 10.1% to €4.7 bn; adj. EBIT1 margin at 10.9% (PPA2 -€171 mn and special effects -€14 mn)

› NIAT3 amounted to €3.0 bn, up by 6.5% › Free cash flow amounted to €1.8 bn including €596 mn cash outflow for acquisitions (mainly Hornschuch and Argus); free cash flow before acquisitions amounted to €2.3 bn › Gearing ratio down to 13%; equity ratio up to 44% › Value creation: trailing ROCE4 up slightly to 20.6% › Other topics: › Order intake: lifetime sales in the Automotive Group increased to almost €40 bn › Dividend to increase by €0.25 to €4.505 for FY 2017

1) Corporation Highlights 2017 Most Important KPIs for FY 2017

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA 3 Attributable to the shareholders of the parent 4 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM 5 Subject to approval of the Annual Shareholders’ Meeting (ASM) on April 27, 2018

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› Revenue pool for suppliers reached more than €1 trn

in 2017

› Business related to “established” business will grow by

~1% p.a. and reach ~€1.1 trn in 2025

› Revenues share of Electrification1, Automated Driving

and Holistic Connectivity represented in total <3% in 2017

› Revenue share of Electrification1, Automated Driving

and Holistic Connectivity will grow by ~30% p.a. to >€200 bn in 2025

› It will account for ~15% of the overall supplier revenue

market by 2025

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Sources: Roland Berger and Continental estimates. FX rate assumption 1.13 EUR/USD.

1 Not including market for electric vehicle batteries but including hybrid solutions.

2) Automotive Trends New Business Opportunities Arise

250 500 750 1,000 1,250 1,500 2017 2025 New Business Opportunities Established Business

30% p.a. 1% p.a.

Global Supplier Revenue Pool (bn €)

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2) Automotive Trends Four ACES1 Will Drive Our Growth

1) Four ACES: autonomous, connected, electrified and shared mobility 2) Total Addressable Market 3) Not including market for batteries but hybrid solutions 4) McKinsey estimates a market for digital services of US70$ - 110 billion in 2025;

FX rate assumption of 1.13 EUR/USD

Electrification Automated Driving

Holistic Connectivity

TAM2 in bn €3 TAM2 in bn € TAM2 in bn €4

Shared Mobility

Sources: McKinsey and Continental estimates

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3) Key Enabler: Digitalization The Most Digitalized Portfolio in The Supplier Sector1

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 Continental Automotive

Today: Electronics/Sensors/SW products as % of sales Continental 2025: Electronics/Sensors/SW products as % of sales

Source: Company filings and Continental estimates.

1 Suppliers >€3 bn sales.

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3) Key Enabler: Digitalization Strong Order Intake Drives Sustainable Growth…

Automotive Group: Strong Order Intake (bn €)

1 Lifetime Sales

1

23.6 24.5 26.6 28.5 >30 30 35 40 2015 2016 2017 2018E 2019E 2020E 2021E 2022E Automotive Group Sales Order Intake (LTS)

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3) Key Enabler: Digitalization … but Causes Sustained High R&D and Capex

1,475 1,589 1,836 2,097 2,431 2,676 7.6% 7.9% 8.8% 8.9% 9.9% 10.1% 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E

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

1,036 1,016 1,126 1,275 1,497 1,790 5.3% 5.1% 5.4% 5.4% 6.1% 6.7% 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E Capex (€ mn) Capex ratio

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

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› Until 2025 the internal combustion engine (ICE) will be the

most dominant force amongst the different propulsion types

› More variants of hybridization due to decline in Diesel › Strong increase in pure Electric Vehicles after 2025 › Breakthrough in battery technology might accelerate

scenario

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4) Electrification Electrification of Engines: Estimated Development

Global PC & LT1 Production by Engine Type (mn units)

1 Passenger car and light truck <6t

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2017 Sales 2017 Mechanics and hydraulics Electronics Electrification

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4) Electrification Powertrain Division: Order Intake Confirms Shift to Electronics & Electrification

1 Order Intake as Lifetime Sales

Order Intake

€ 13.4 bn ∑ € 7.7 bn ∑

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4) Electrification Relative Value of Continental’s Content in Powertrains1

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HEV-related business including extended offering Gasoline-related business Diesel-related business BEV-related business including extended offering

100%1 160% 160-360% 400%

› Engine management systems for

diesel piezo common-rail injection (injector, ECUs, pressure pumps)

› Exhaust aftertreatment › Sensors and actuators › Engine management systems for

solenoid direct injection (injector, ECU, pressure pumps)

› Exhaust aftertreatment › Sensors and actuators › Turbochargers › Engine management systems

(gasoline/diesel)

› Exhaust aftertreatment › Sensors and actuators › Turbochargers

and

› 48V solutions (12kW/ 15kW/ 25kW)

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› Plug-in hybrid solutions (incl. thermal

components & charging systems)

› High-voltage axle drive › Power electronics › Onboard charging systems › Battery management systems › DC/DC converter › Thermal management

components

Well positioned in all key technologies!

1 Value of displayed gasoline content per car is indexed at 100%; all other values read relative to the gasoline content.

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5) Automated Driving Market for Automated Driving: Estimated Development

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L5 L4 L3 L0-L2 Total Market PC & LT1 production (mn units)

1 Passenger car and light truck <6t

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5) Automated Driving Market for Automated Driving: Three-Layer Model

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System Electronics Software Integration ~€7 bn Environmental Model Software Electronics ~€2 bn

Market for Automated Driving ~€35 bn1 by 2025

Components Sensors ~€26 bn

Cooperation/Joint Venture

ADCU

Recent Additions to the Portfolio

1 Source: Continental estimates

HUAWEI easyMILE BMW intel NTT docomo Baidu China unicom

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5) Automated Driving ADAS Sensors per Car

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1 Sources: 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 not in Continental portfolio.

Short Range Radar Surround View Ultrasonic3 Camera 3D Flash Lidar Long Range Radar Sensors per car Level 4/5 Level 3 Level 2 441 401 33-402 25-292 18-222 BMW GM Continental

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System Manufacturers Component Suppliers

OI 2017: ~€3.5 bn OI 2016: €3.5 bn

Sales (€ mn)

Incl. Elektrobit, HMI and HuD

n/a n/a ~2,500

OI 2016: €0.4 bn OI 2016: €1.3 bn

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5) Automated Driving Leading Position of Continental in ADAS

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1 Continental ADAS = Radar, Lidar, Camera and ADCUs, 2017 OI includes ADAS related CVAM business OI 2 Bosch PR May 4th, 2017; Bosch has not communicated any future ADAS sales target; Bosch includes ultrasonic in ADAS sensors; Bosch target is a 2019 target 3 Denso reports ADAS sales as part of “Information and safety systems”; Denso’s ADAS target 03/2021 looks for JPY 200 bn; sales are annualized 4 Autoliv active safety products: radar systems, vision and night systems, active seatbelts and brake systems, dynamic spot light and system integration; 2020 target 5 Mobileye 2016 sales; company has the target to achieve 1.1 bn USD sales by 2019 6 Hella: according to Jeffries Research 7 Delphi 2016 sales represent company communication from Q2 2016 and target to achieve 1 bn USD sales by 2019 8 Valeo reports sales for comfort and driving assist only. It includes rain, lighting and ultrasonic sensors in DA sales; it has no official target for future ADAS sales communicated 9 ZF has not provided any sales data on its ADAS business

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For Recuperation in Electric Vehicles For Highly Automated Driving › The MK C1 for highly automated driving has a

redundant fallback-level by combining it with a MK 100 based Hydraulic Brake Extension.

› The MK C1 HAD system architecture with two

networked braking system units offers a stepped degradation concept to ensure the required deceleration level at all times without driver interaction.

At lower weight than a traditional braking system (from ̴ 9-10kg to ̴ 6kg) › The MK C1 supports

regenerative braking in a wider range than standard regenerative brake systems Traditional braking system MK C1

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5) Automated Driving Electrification and ADAS Require New Braking Solutions: MK C1

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~10% ~20%

~40%

>1,000 ~1,400

~1,500 Estimated vehicle population (mn units)

6) Holistic Connectivity Rise of Connected Vehicles

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6) Holistic Connectivity Software Drives Architecture, Process and Organization

more than 170 Sensors

Actuators

more than 150

Yesterday Today

up to

ECUs

Classic ECU Performance/Safe ty ECU “small ECU”/Sensor/Actor Virtualized Performance Controller

90 <10

more than 200 Sensors

Actuators

more than 150

Tomorrow

Only High performance computers

Increasing Computing Power

› Increasing computing power

will lead to an centralized E/E architecture

› Hardware will be separated

from software – software integration capabilities are needed

› Security supporting

approach by multilayered, end-to-end solutions and services required

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6) Holistic Connectivity Central Processing Unit in a Server Based Architecture

1 EEA = Electric/Electronic architecture 2 I/O = Input / Output

Automated driving Electrification Connectivity New Mobility

0100110 0010101 0011

Digitalization

IoT

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

› Automotive and cross industry trends require new approaches in EEA* › Move towards structures known from IT industry › 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 integration. Redistribution of application SW. Separation of I/O* logic from application function + application fusion across domains. In-vehicle communication. Increasing demand of in- vehicle network bandwidth.

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7) Tires: No Disruption but Evolution Four ACES Will Reduce Costs per Mile Traveled

Shared Mobility Automated Mobility Electrification Connectivity

› Higher utilization of car park › Lower cost per mile traveled ›

Results in greater access to mobility

Better safety

Fuel efficiency

Economies of scale

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7) Tires: No Disruption but Evolution Greater Access to Mobility for a Growing World Population

Increased global mobility Growth of global population More miles traveled

World population Miles per capita Global miles traveled

2015 2020 2025

Sources: Continental, World Bank, Morgan Stanley, Roland Berger

2015 2020 2025

63% 37% 43% 53% 47% 57% 2015 2020 2025

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7) Tires: No Disruption but Evolution Tires Division Strategy 2025: Globalize Growth (mn units)1

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40 80 120 2010 2015 2025 target

∑120 ∑142 ∑>200

2 1 3

› 2010-2025: Continental

growth to outperform global market growth

› Strongest growth in APAC,

followed by The Americas

› Improving Global sales split

The Americas APAC EMEA

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

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8) ContiTech – Smart Solutions Beyond Rubber Relevant Markets and Growth Opportunities

Σ~€82 bn Σ~€60 bn

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 1 2 3 4 5 6 7

2025 2017

› Balanced portfolio of OE

Automotive and Non-OE Automotive businesses

› Growth through volume and

(added) value1 expansion of products

1 Additional sales driven by servitization and software

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8) ContiTech – Smart Solutions Beyond Rubber Unveiling the Power of Digitalization

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› Advanced use of process data helps

to improve asset efficiency, logistics and maintenance by facilitating

perational excellence.

Servitization and smart Conveyer Belts Added value through functional integration

f electronics and software1

Highly automated operations

Automation and horizontal integration Functional integration Lifecycle integration

1 Example for combination of our air springs with the sensor technology, software, control devices for height adjustment and Continental compressors

Value Creation

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2005 2010 2015 2020E 2025E Rubber sales (€ bn) Automotive sales (€ bn) Automotive sales ACES (€ bn)

9) Continental Strategy – Outlook 2020 and Beyond 2020E: Sales Exceed €50 bn and ROCE More Than 20%

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2005-2010: 3% 2010-2015: 4% 2015-2020E: 1-2% Global PC & LT2 Production CAGR

Rubber Group Automotive Group 19% 12% 21% >20% 14 26 39 >50

1 ACES: Automated Driving, Connectivity, Electrification and Shared Mobility 2 Passenger car and light truck

1

Return on capital employed (ROCE)

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5.509 5.879 4.719 5.336 5.828 5.674 4.887 5.676 5.750 5.973 5.080 5.710

2% 9%

1%

3% 6%

3%

4% 6%

1%

5% 4% 1%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E Europe chg YOY 4.456 4.601 4.409 4.360 4.528 4.457 3.970 4.109 4.450 4.500 3.930 3.960

4% 2% 1% 0% 2%

3%
10%-6%
2%

1%

1%-4%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E North America chg YOY 6.393 6.059 6.302 8.309 6.830 6.059 6.487 8.381 6.580 6.334 6.542 8.440

7% 6% 30% 16% 7% 0% 3% 1% -4% 5% 1% 1%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E China chg YOY

10)Continental Outlook 2018 PC & LT Production by Quarter1

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North America (mn units) Europe (mn units) China (mn units)

2016: 21.4 2017: 22.1 2018E: 22.5 2016: 17.8 2017: 17.1 2018E: 16.8 2016: 27.1 2017: 27.8 2018E: 27.9

1 Source: IHS until 2017 and own estimates, Europe excluding Kazakhstan and Uzbekistan

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10)Continental Outlook 2018 Market Outlook for Major Regions

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Commercial Vehicle2 Production (k units) Commercial Vehicle Replacement3 Tire Market (mn units) PC & LT1 Production (mn units) PC & LT1 Replacement Tire Market (mn units) Worldwide production to increase more than 1% Worldwide production to decrease by 1% Worldwide replacement tire market to increase by 3% Worldwide replacement market to increase by 2%

IHS and

wn estimates

LMC and

wn estimates

IHS and

wn estimates

LMC and

wn estimates

2017E 2018E Chg. Europe 22.1 22.5 +2% North America 17.1 16.8

2%

South America 3.3 3.6 +8% Asia 51.5 52.5 +2% 2017E 2018E Chg. Europe 660 673 +2% North America 513 559 +9% South America 102 112 +10% Asia 2,140 2,033

5%

2017E 2018E Chg. Europe 351 358 +2% North America 285 290 +2% South America 73 76 +4% Asia 453 475 +5% 2017E 2018E Chg. Europe 25.3 25.8 +2% North America 24.5 25.3 +3% South America 15.7 16.4 +5% Asia 89.2 91.0 +2%

1 Passenger car and light truck <6t 2 Medium and heavy vehicles >6t 3 Radial and bias

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10)Continental Outlook 2018 Continental Corporation

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2017 2018E Consolidated sales

adj. EBIT1 margin

€44.0 bn 10.9 % To increase to ~€47 bn at constant FX rates ~10.5% adj. EBIT1 margin Automotive Group

adj. EBIT1

€26.6 bn €2.2 bn To increase to ~€28.5 bn at constant FX rates ~8.5% adj. EBIT1 margin Rubber Group

adj. EBIT1

€17.5 bn €2.6 bn To increase to ~€18.5 bn at constant FX rates ~15% adj. EBIT1 margin Raw materials cost impact More than €450 mn for the Rubber Group Raw materials to burden Rubber Group with about €50 mn, based on current estimates Special effects

€14 mn
€100 mn

Financial result Tax rate

€187 mn at constant FX2

29% <-€180 mn at constant FX rates <30% Capex PPA amortization €2.9 bn €171 mn Capex at around 7% of sales ~€180 mn Free cash flow before acquisitions €2.3 bn ~€2 bn

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Before effects of currency translation and effects from changes in the fair value of derivative instruments and other valuation effects

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Disclaimer

› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Annual Press Conference and the Analyst and Investor Call on March 8, 2018,

and the subsequent road shows in Europe, North America and Asia. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase

r 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.

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References Useful Links

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Continental Investor Relations website www.continental-ir.com Annual and interim reports www.continental-corporation.com/en/investors/reports 2017 Fact Book (Investor presentation) www.continental-corporation.com/en/investors/reports Investor Relations events and presentations www.continental-corporation.com/en/investors/events/presentations Sustainability at Continental (presentation and fact sheet for investors) www.continental-corporation.com/en/investors/about-us/presentation-sustainability-at-continental-23118 Corporate Social Responsibility www.continental-sustainability.com Corporate Governance Principles www.continental-corporation.com/en/company/corporate-governance/principles-and-declarations Continental shares www.continental-corporation.com/en/investors/share Continental bonds and rating www.continental-corporation.com/en/investors/debt-and-rating Continental IR on Twitter twitter.com/Continental_IR

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Contact Equity and Debt Markets Relations

Vahrenwalder Str. 9 30165 Hanover Germany e-mail: ir@conti.de Fax: +49 511 938 1080 www.continental-ir.com Michael Saemann Analysts, Institutional Investors and Sustainability Investors Phone: +49 511 938 1307 e-mail: michael.saemann@conti.de Klaus Paesler Analysts, Institutional Investors, ADR and Private Investors Phone: +49 511 938 1316 e-mail: klaus.paesler@conti.de Marvin Kalberlah Analysts, Institutional Investors, Social Media Phone: +49 511 938 14034 e-mail: marvin.kalberlah@conti.de Christopher Macke Analysts, Institutional Investors Phone: +49 511 938 1062 e-mail: christopher.macke@conti.de Sabine Reese Sustainability, ASM, CMD Organization, IR Website, Capital Market Disclosure Requirements Phone: +49 511 938 1027 e-mail: sabine.reese@conti.de Rolf Woller Head of IR Phone: +49 511 938 1068 e-mail: rolf.woller@conti.de Jana Cross Assistant to the Head of IR Roadshow and Conference Organization Phone: +49 511 938 1163 e-mail: jana.cross@conti.de

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11) Back-up FY 2017 Results Presentation Hanover – March 8, 2018

FY 2017 Results EDMR - Equity and Debt Market Relations

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FY 2017 Results

Ticker: CON ADR-Ticker: CTTAY Twitter: @Continental_IR http://www.continental-ir.com

Hanover – March 8, 2018

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Agenda

Indebtedness and Cash Flow 4 55 Corporation Highlights 1 36 Automotive Group 2 45 Rubber Group 3 50 Outlook 2018 5 59 Medium-Term Outlook 62 6 Back-up and 2015-2017 Fact Sheets 67 7

35 FY 2017 Results EDMR - Equity and Debt Market Relations

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› Sales up by 8.5% to €44.0 bn; organic sales growth at 8.1%; FX negative at €435 mn ›

Adj. EBIT1 up by 10.1% to €4.7 bn; adj. EBIT1 margin at 10.9% (PPA2 -€171 mn and special effects -€14 mn)

› NIAT3 amounted to €3.0 bn, up by 6.5% › Free cash flow amounted to €1.8 bn including €596 mn cash outflow for acquisitions (mainly Hornschuch and Argus); free cash flow before acquisitions amounted to €2.3 bn › Gearing ratio down to 13%; equity ratio up to 44% › Value creation: trailing ROCE4 up slightly to 20.6% › Other topics: › Order intake: lifetime sales in the Automotive Group increased to almost €40 bn › Dividend to increase by €0.25 to €4.505 for FY 2017

1) Corporation Highlights Most Important KPIs for FY 2017

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA 3 Attributable to the shareholders of the parent 4 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM 5 Subject to approval of the Annual Shareholders’ Meeting (ASM) on April 27, 2018

36 FY 2017 Results EDMR - Equity and Debt Market Relations

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› Automotive Group: Organic sales increased by 9.3%, exceeding worldwide car production by 7%-points; adj. EBIT1 margin increased by 180 bps to 8.4% (PY: 6.6%); › Order intake in the Automotive Group increased to almost €40 bn › Chassis & Safety: 9.2% adj. EBIT1 margin (PY: 6.5%);

rganic sales up by 10.4%; ADAS unit sales up by 41%

› Powertrain: 6.2% adj. EBIT1 margin (PY: 5.4%);

rganic sales up by 5.6%; adj. EBIT1 margin before

HEV at >9% › Interior: 9.2% adj. EBIT1 margin (PY: 7.6%); organic sales increased by 11.6% driven by strong demand for displays as well as body and security electronics

1) Corporation Highlights Divisional Highlights for FY 2017

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

› Rubber Group: Organic sales up by 6.3% and adj. EBIT1 margin down to 15.6% (PY: 17.5%), negatively impacted by more than €450 mn from rise in raw material costs › Tires: Adj. EBIT1 margin down to 19.0% (PY: 21.4%), mainly impacted by higher raw material costs; solid price mix 2%; volumes were up by 3%; FX impacted tire sales negatively by 1%; organic sales up by 5.3% Tire markets: PC & LT tire replacement demand in Europe and North America combined was up by 2% › ContiTech: Adj. EBIT1 margin decreased by 70 bps to 8.8% (PY: 9.5%), negatively impacted by rising raw material costs; organic sales up by 8.1%

Automotive Group Rubber Group

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9,569 10,030 9,618 10,016 9,851 10,191 9,984 10,524 11,000 11,033 10,693 11,284 1,090 1,292 644 1,284 1,166 1,163 1,090 1,329 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Sales (€ mn)

Adj. EBIT (€ mn)

1) Corporation Highlights Sales and Adjusted EBIT1 by Quarter

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

FY Sales €39,232 mn FY Sales €40,549 mn

Adj. EBIT1 €4,310 mn

FY Sales €44,009 mn

Adj. EBIT1 €4,747 mn

1

FY 2017 Results EDMR - Equity and Debt Market Relations

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3,669 4,045 3,968 4,022 3,852 4,045 4,038 4,164 4,260 4,382 4,361 4,491 663 800 644 710 628 634 637 745 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Sales (€ mn)

Adj. EBIT (€ mn)

5,912 5,996 5,661 6,005 6,011 6,158 5,958 6,370 6,754 6,661 6,344 6,806 455 517 38 604 567 556 491 608 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Sales (€ mn)

Adj. EBIT (€ mn)

1) Corporation Highlights Automotive Group and Rubber Group by Quarter

39

1

Automotive Group Rubber Group

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

1

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 40

2.5% 3% 8% GDP growth advanced economies 2017 PC & LT production growth Europe ContiTech

rganic sales growth

4% 4% 5% Replacement tire volume growth North America Replacement tire volume growth Europe Commercial Vehicle Tires volume growth 0% 2% 9% PC & LT production growth Europe and North America PC & LT production growth, global Automotive Group

rganic sales growth

0% 3% 3% Replacement tire volume growth North America Replacement tire volume growth Europe Passenger & Light Truck tires volume growth

1) Corporation Highlights Growth Profile of the Corporation FY 2017

40

Market

1 According to IMF definition (WEO Update January 2018)

1

Conti Market Conti

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 41

4,562 171 1 45 16 15 4,747 Reported EBIT 2017 PPA Consolidation effects Asset impairment (net) Restructuring costs Other special effects

Adj. EBIT

2017

1) Corporation Highlights Adjusted EBIT1 Bridge (€ mn)

41

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA 3 Including asset impairment and necessary reversal of impairment losses amounting to €5.0 mn

2 1 3

›C&S €0.0 mn ›Powertrain €11.9

mn

›Interior €46.1 mn ›Tires €19.5 mn ›ContiTech €93.2

mn

›C&S –

›Powertrain €3.6

mn

›Interior €39.5

mn

›Tires -€18.6 mn ›ContiTech -

€23.8 mn

›C&S €0.5 mn ›Powertrain €18.8

mn

›Interior €23.0

mn

›Tires €0.5 mn ›ContiTech €2.4

mn

›C&S -€0.1 mn ›Powertrain -€0.7

mn

›Interior -€5.4 mn ›Tires -€10.0 mn ›ContiTech -€0.2

mn

›C&S – ›Powertrain – ›Interior -€1.9 mn ›Tires -€14.5 mn ›ContiTech €1.6

mn FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 42

17,510 18,198 18,910 19,681 19,767 19,983 20,106 20,453 20,978 21,401 21,886 22,172 19.5% 20.3% 21.6% 20.9% 21.1% 21.2% 18.9% 20.0% 20.0% 19.0% 20.6% 20.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 Trailing OA (€ mn) Trailing ROCE

1) Corporation Highlights Sustainable Value Creation

42

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

1 2

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 43

750 500 1,350 2018 2019 2020 2021 2022

1) Corporation Highlights Maturities for Bonds1 (€ mn)

43

As at December 31, 2017

(€ mn) FY 16 FY 17 Gross indebtedness 4,952 4,090 Cash 2,107 1,882 Net indebtedness 2,798 2,048 Available credit lines 3,888 3,687 Total liquidity 5,995 5,568

Bonds

1 All amounts shown are nominal values

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 44

2.25 2.50 3.25 3.75 4.25 4.50 9.53 9.62 11.88 13.64 14.01 14.92 23.6% 26.0% 27.4% 27.5% 30.3% 30.2% 2012 2013 2014 2015 2016 2017 Dividend per share (€) Earnings per share (€) Payout ratio

1) Corporation Highlights Earnings and Dividend per Share; Payout Ratio

44

2

1 Dividend for FY 2017 subject to approval of the Annual Shareholders’ Meeting (ASM) on April 27, 2018 2 Dividend paid for the respective fiscal year, payout in the subsequent year

1

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 45

898 474 851 2,222 Chassis & Safety Powertrain Interior cons. Automotive Group 9.2% 6.2% 9.2% 8.4%

Adj. EBIT margin (%)

9,768 7,661 9,305 168 26,565 Chassis & Safety Powertrain Interior cons. Automotive Group 5.6% 11.6% 9.3% 10.4% Organic sales growth (%)

2) Automotive Group Sales and Adjusted EBIT1 by Division

45

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

Reported sales change

›

Chassis & Safety: 8.8%

›

Powertrain: 4.7%

›

Interior: 11.8%

›

Automotive Group: 8.4%

1

›

Reported EBITDA: €3,296 mn (12.4% of sales)

›

Reported EBIT: €2,087 mn (7.9% of sales)

›

R&D (net): €2,676 mn (10.1% of sales)

›

Capex: €1,790 mn (6.7% of sales)

Automotive Group Sales (€ mn) FY 2017 Automotive Group Adj. EBIT1 (€ mn) FY 2017

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 46

604 608 9.5% 8.9% Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 6,370 6,754 6,661 6,344 6,806 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17

2) Automotive Group Q4 2017: Sales and Profits up in Q4 as Forecast

46

+436 +4

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Operating leverage is defined as delta adj. EBIT1 divided by delta adjusted sales

› Sales increased by €436 mn; organic sales growth in Q4 2017 at 10.1% › Adj. EBIT1 increased by €4 mn; operating leverage2 amounted to 1% › Adj. EBIT1 margin at 8.9% (PY: 9.5%) mainly due to higher R&D (net) costs which increased by 22% in Q4 2017

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

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 47

11% 7% 9% 10% 6% 0% 2% 1% Q1/17 Q2/17 Q3/17 Q4/17 Automotive Group PC & LT prod. growth ww 13% 10% 12% 8% 5% 8% 10% 4% 12% 12% 4% 14%

2) Automotive Group Outperformance by 7%-Points in 2017

47

1

Passenger car and light truck <6t

Growth of organic sales vs. PC & LT1 production Organic sales growth by division

Chassis & Safety Powertrain Interior Q1/17 Q2/17 Q3/17 Q4/17 Q1/17 Q2/17 Q3/17 Q4/17 Q1/17 Q2/17 Q3/17 Q4/17

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 48

2) Automotive Group Order Intake (LTS1) in the Automotive Group of Almost €40 bn in 2017

48

Interior Chassis & Safety Powertrain

› ADAS order intake at ~€3.5 bn2 › VED book-to-bill at 1.6x mainly on new MK 100 and MK C1 › More than 35% of the order intake was acquired outside of Europe and North America › Engine Systems book-to-bill ratio at 1.4x › Sensors & Actuators book-to-bill ratio at 1.7x › Nearly all business units recorded an

rder intake above prior year level

› Overall solid order backlog with book-to-bill in IC and CVAM running at >1.7x › New orders acquired in ITS › 38% of order intake was acquired in Asia 11.1 13.5 14.7

1.3 1.5 1.5

2015 2016 2017 LTS (€ bn) Book-to-bill 9.7 11.5 13.4

1.4 1.6 1.7

2015 2016 2017 LTS (€ bn) Book-to-bill 9.6 10.0 11.7

1.2 1.2 1.3

2015 2016 2017 LTS (€ bn) Book-to-bill

1 LTS = Life Time Sales 2 Includes ADAS related CVAM business order intake

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 49

Europe 47% North America 24% Asia 27% Other 2%

2) Automotive Group Order Intake Well Balanced

49

Sales by market 2017 Order intake by market 2017

Europe 44% North America 15% Asia 40% Other 1%

€26.6 bn €39.8 bn

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 50

515 2,128 2,644 ContiTech Tires cons. Rubber Group 8.8% 19.0% 15.6%

Adj. EBIT margin (%)

6,246 11,326 77 17,495 ContiTech Tires cons. Rubber Group 8.1% 5.3% 6.3% Organic sales growth (%)

3) Rubber Group Profitability Impacted by Rise in Raw Material Costs

50

Reported sales change

›

ContiTech: 14.4%

›

Tires: 5.7%

›

Rubber Group: 8.7%

›

Reported EBITDA: €3,500 mn (20.0% of sales)

›

Reported EBIT: €2,594 mn (14.8% of sales)

›

R&D (net): €428 mn (2.4% of sales)

›

Capex: €1,060 mn (6.1% of sales)

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

1

Rubber Group Sales (€ mn) FY 2017 Rubber Group Adj. EBIT1 (€ mn) FY 2017

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 51

710 745 17.1% 17.0% Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 4,164 4,260 4,382 4,361 4,491 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17

3) Rubber Group Q4 2017 Returning Back to 2016 Levels

51

› Sales increased by €328 mn; organic sales growth in Q4 2017 at 8.8% › Adj. EBIT1 increased by €35 mn › Adj. EBIT1 margin at 17.0% (PY: 17.1%)

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

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

+328 +35

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 52

6% 1% 3% 1% 5%

1%

3% 3% Q1/17 Q2/17 Q3/17 Q4/17 PC & LT tire volumes, global PC & LT tire volumes, Continental 8% 2% 7% 4% 15% 6% 2%

3%

Q1/17 Q2/17 Q3/17 Q4/17 Truck tire volumes, global Truck tire volumes, Continental

3) Rubber Group Strong Volume Growth in Tires Throughout 2017

52

PC & LT1 tire market growth vs. Continental Truck tire market growth vs. Continental

1 Passenger car and light truck <6t

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 53

6%

1%

3% 3% 1% 2% 3% 5% Q1/17 Q2/17 Q3/17 Q4/17 Continental tire volumes, global Continental P/M 20% 12% 1% 4% 6%

Unit sales growth ≥ 18" Unit sales growth ≥ 17" Unit sales growth winter tires Unit sales growth (ww) Sales growth PLT tires

3) Rubber Group Strong in Mix

53

Global volumes and Price/Mix 2017 Growth Matrix PC & LT1 Tires CAGR 2010-2017

1 Passenger car and light truck <6t

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 54

149 185 195 205 126 155 180 180 100 200 300

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E

TSR 20 (U.S. cents/kg) Butadiene (U.S. cents/kg)

3) Rubber Group Expected Raw Material Price Development in 2018

54

› Natural rubber price (TSR 20) expected

to rise by 10%

› Synthetic rubber price (butadiene

feedstock) forecast to rise by 6%

› Prices for carbon black and chemicals are

forecast to rise by at least 10%

› Based on these assumptions,

costs of raw materials are expected to burden the Rubber Group with about €50 mn in 2018

› However, H1 2018 will be supported by

lower raw materials costs and positive effects from price increases in Q2 2017

1 Source: Bloomberg and Continental estimates for 2018

Raw material price development1 2013 - 2018E (U.S. cents/kg)

Average (Y) TSR 20: 251 Butadiene: 148 Average (Y) TSR 20: 172 Butadiene: 132 Average (Y) TSR 20: 137 Butadiene: 90 Average (Y) TSR 20: 138 Butadiene: 113 Average (Y) TSR 20: 167 Butadiene: 151 Average (Y) TSR 20: 184 Butadiene: 160

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 55

2,798 850 2,951 596 737 484 738 2,117 3,513 2,048

Net indebtedness (FY 2016) Dividend 2016 Capex Acquisitions Change in receivables Change in inventories Change in payables

Depr. and

amortization Other CF Net indebtedness (FY 2017)

4) Indebtedness and Cash Flow Net Indebtedness Bridge (€ mn)

55

1 According to cash flow statement including intangible assets

€484 mn outflow from change in working capital

1

Gearing ratio 19% 13%

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 56

8,896 7,317 6,772 5,320 4,289 2,824 3,542 2,798 2,048 65% 46% 26% 27% 19% 13% 219% 118% 90% 58% YE YE YE YE YE YE YE YE YE 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net indebtedness (€ mn) Gearing ratio applying IAS 19 (rev. 2011) Gearing ratio

4) Indebtedness and Cash Flow Net Indebtedness and Gearing Ratio

56 FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 57

1,640 567 491 1,653 1,818 2,015 1,444 1,771 1,753 1,257 516 596 39% 87% 95% 85% 99% 82% 79% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Free cash flow (€ mn) Cash outflow acquisitions (€ mn) Cash conversion

4) Indebtedness and Cash Flow Cash Conversion

57

1 Free cash flow before acquisitions divided by net income attributable to the shareholders of the parent; IAS 19 (rev.2011) applied since 2012

Cumulative more than €13 bn of free cash flow

1

∑ 2,287 ∑ 2,349

1

∑ 2,701

1

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 58

4,938

3,167

1,771

2,651

2,287 5,221

3,468

1,753

2,871

2,349 Cash flow from

perating activities

Cash flow used for investing activities Free cash flow 2016 2016 before acquisitions 2017 2017 before acquisitions

4) Indebtedness and Cash Flow Free Cash Flow Before Acquisitions (€ mn) Increased Despite High Capex

58

+220 +62 +283

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 59

5.509 5.879 4.719 5.336 5.828 5.674 4.887 5.676 5.750 5.973 5.080 5.710

2% 9%

1%

3% 6%

3%

4% 6%

1%

5% 4% 1%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E Europe chg YOY 4.456 4.601 4.409 4.360 4.528 4.457 3.970 4.109 4.450 4.500 3.930 3.960

4% 2% 1% 0% 2%

3%
10%-6%
2%

1%

1%-4%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E North America chg YOY 6.393 6.059 6.302 8.309 6.830 6.059 6.487 8.381 6.580 6.334 6.542 8.440

7% 6% 30% 16% 7% 0% 3% 1% -4% 5% 1% 1%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18E Q2/18E Q3/18E Q4/18E China chg YOY

5) Outlook 2018 PC & LT Production by Quarter1

59

North America (mn units) Europe (mn units) China (mn units)

2016: 21.4 2017: 22.1 2018E: 22.5 2016: 17.8 2017: 17.1 2018E: 16.8 2016: 27.1 2017: 27.8 2018E: 27.9

1 Source: IHS until 2017 and own estimates, Europe excluding Kazakhstan and Uzbekistan

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 60

5) Outlook 2018 Market Outlook

60

Commercial Vehicle2 Production (k units) Commercial Vehicle Replacement3 Tire Market (mn units) PC & LT1 Production (mn units) PC & LT1 Replacement Tire Market (mn units) Worldwide production to increase more than 1% Worldwide production to decrease by 1% Worldwide replacement tire market to increase by 3% Worldwide replacement market to increase by 2%

IHS and

wn estimates

LMC and

wn estimates

IHS and

wn estimates

LMC and

wn estimates

2017E 2018E Chg. Europe 22.1 22.5 +2% North America 17.1 16.8

2%

South America 3.3 3.6 +8% Asia 51.5 52.5 +2% 2017E 2018E Chg. Europe 660 673 +2% North America 513 559 +9% South America 102 112 +10% Asia 2,140 2,033

5%

2017E 2018E Chg. Europe 351 358 +2% North America 285 290 +2% South America 73 76 +4% Asia 453 475 +5% 2017E 2018E Chg. Europe 25.3 25.8 +2% North America 24.5 25.3 +3% South America 15.7 16.4 +5% Asia 89.2 91.0 +2%

1 Passenger car and light truck <6t 2 Medium and heavy vehicles >6t 3 Radial and bias

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 61

5) Outlook 2018 Continental Corporation

61

2017 2018E Consolidated sales

adj. EBIT1 margin

€44.0 bn 10.9 % To increase to ~€47 bn at constant FX rates ~10.5% adj. EBIT1 margin Automotive Group

adj. EBIT1

€26.6 bn €2.2 bn To increase to ~€28.5 bn at constant FX rates ~8.5% adj. EBIT1 margin Rubber Group

adj. EBIT1

€17.5 bn €2.6 bn To increase to ~€18.5 bn at constant FX rates ~15% adj. EBIT1 margin Raw materials cost impact More than €450 mn for the Rubber Group Raw materials to burden Rubber Group with about €50 mn, based on current estimates Special effects

€14 mn
€100 mn

Financial result Tax rate

€187 mn at constant FX2

29% <-€180 mn at constant FX rates <30% Capex PPA amortization €2.9 bn €171 mn Capex at around 7% of sales ~€180 mn Free cash flow before acquisitions €2.3 bn ~€2 bn

1 Before amortization of intangibles from PPA, consolidation and special effects 2 Before effects of currency translation and effects from changes in the fair value of derivative instruments and other valuation effects

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 62

2005 2010 2015 2020E 2025E Rubber sales (€ bn) Automotive sales (€ bn) Automotive sales ACES (€ bn)

6) Medium Term Outlook Sales Exceed €50 bn and ROCE More Than 20%

62

2005-2010: 3% 2010-2015: 4% 2015-2020E: 1-2% Global PC & LT2 Production CAGR

Rubber Group Automotive Group 19% 12% 21% >20% 14 26 39 >50

1 ACES: Automated Driving, Connectivity, Electrification and Smart Mobility 2 Passenger car and light truck

1

Return on capital employed (ROCE)

FY 2017 Results EDMR - Equity and Debt Market Relations

SLIDE 63

63

Disclaimer

› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Annual Press Conference and the Analyst and Investor Call on March 8, 2018,

and the subsequent road shows in Europe, North America and Asia. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase

r 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