citigroup roadshow frankfurt & london may 10/11, 2010 wolfgang schäfer, cfo

Citigroup Roadshow Frankfurt & London

May 10/11, 2010

Wolfgang Schäfer, CFO

Equity and Debt Markets Relations (EDMR)Citigroup Roadshow Frankfurt & London – May 10/11, 2010

Highlights

Group Financials

Financials Automotive GroupUpdate Powertrain

Financials Rubber Group

Financial Indebtedness

Outlook 2010

Back-up

2 / © Continental AG

Agenda



HighlightsGroup – Summary of Financial Highlights

Q1 sales up by 39% YOY and by 5% QOQ; Q1 adj. EBIT* up by € 641 mn YOY

Adj. EBIT* improved to € 605 mn – adj. EBIT* margin 10.2% in Q1/10; adj. EBIT* Q1/10 is above Q1/08 although sales still down by almost 10%

Automotive Group: adj. EBIT* margin at 8% in Q1 2010; again strong results in C&S; further recovery in Interior and continuous improvement in Powertrain

Rubber Group: adj. EBIT* margin at 14.5% in Q1 2010; all divisions contributed to sustained adj. EBIT* level compared to Q4 2009; no material impact yet from escalated raw material prices (esp. natural rubber)

Overall almost no special items booked in Q1 2010

Cash consumption (FCF) limited to € 363 mn in Q1 2010 despite a strong increase in all business activities

No major cash out in Q1 2010 for restructuring undertaken in 2009

Capex at € 178 mn in Q1 2010 but will increase in the coming quarters

Net debt down to € 8.2 bn at the end of Q1; net debt/adj. EBITDA @ 2.7x** in Q1 2010

* w/o amortization of intangibles from PPA, consolidation and special effects; ** calculated according to syndicated loan facilities

Q1

2010

P&

LQ

1 20

10B

alan

ce S

hee

t


6,639 6,6155,892

5,093

4,3024,761

5,3375,696

5,997

-36.7

604.7

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10

Sales

adj. EBIT


HighlightsEarnings Increase Thanks to Business Recovery and Cost Control

10.2%**

Continental Corporation

Consolidated Sales € 24.239 bn adj. EBIT* 1.747 bn

Consolidated Sales € 20.096 bn adj. EBIT* 1.166 bn

* w/o amortization of intangibles from PPA, consolidation and special effects

** adj. EBIT as a percentage of sales before changes in scope of consolidation

*


2,521

3,770

4,351


Sales (€ millions) Adjusted EBIT* (€ millions)

-146

300

Sales (€ millions) Adjusted EBIT* (€ millions)

Automotive Group Rubber Group

HighlightsEarnings Increase Thanks to Business Recovery and Cost Control


1Q 2Q 3Q 4Q

2008

2Q 4Q 1Q 3Q

2009

2Q 4Q 1Q 3Q

2010

1Q 2Q 3Q 4Q

2008

2Q 4Q 1Q 3Q

2009

2Q 4Q 1Q 3Q

2010

1,784

2,2322,292

1Q 2Q 3Q 4Q

2008

2Q 4Q 1Q 3Q

2009

2Q 4Q 1Q 3Q

2010

121

320

1Q 2Q 3Q 4Q

2008

2Q 4Q 1Q 3Q

2009

2Q 4Q 1Q 3Q

2010


8,895.5

178.0 9.4

716.4174.1

33.2 23.8

657.7

30.0

1,056.8 8,231.9

Ne

t de

bt

(FY

20

09

)

Ca

pe

x

Ac

qu

isit

ion

s

Ch

g. i

n

rec

eiv

ab

les

Ch

g. i

n

inve

nto

rie

s

Ch

g. i

n

pa

yab

les

Dis

po

sa

ls

Oth

er F

CF

F/X

an

do

the

r

Ca

pit

al

inc

rea

se

Ne

t de

bt

(en

d Q

1/1

0)

219.0%

144.9%


HighlightsNet Indebtedness Walk-Down (FY 2009 to Q1 2010)

(€ million)

* of subsidiaries and management units

Gearing ratio

Change in working capital € -857.3 mn

**


4.75 4.75

4.25 4.25 4.25

4.50

4.75

4.50

4.004.46 4.55

4.28

3.66

2.68

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10

new level (since Dec. 18, 2009)

old level

actual

7

HighlightsAdj. LTM EBITDA at € 3.0 bn

Adj. LTM EBITDA

€ 2,977.1 bn

* Leverage covenant ratio defined as net debt to EBITDA (LTM) as defined in syndicated loan facilities and FSF


8

HighlightsCurrent Credit Ratings

Due to the acquisition of Siemens VDO and the beginning of the financial crisis Continental’s corporate credit rating was downgraded several times

Continental’s current credit rating is:

Moody’s since Aug 14, 2009: B1 negative outlook

S&P since Aug 13, 2009: B+ CreditWatch neg.

Rating was confirmed on Jan 21, 2010

We expect S&P to resolve its CreditWatch within the next weeks

Main concerns from S&P acc. to its Feb 2010 report are:

“… we consider that headroom under the new covenant structure could prove tight in 2010 and beyond.”

“… and the relationship between Continental and Schaeffler remains the key risk for the rating.”


Highlights

Group Financials




Outlook 2010

Back-up


Agenda


6,639.4

4,302.0

5,996.7

13.3%

5.8%

14.8%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin

884.0

249.5

888.3

39.4%

256.0%

adj. EBIT

adj. EBIT margin

-36.7 604.7

10.2%-0.9%


Group FinancialsCorporation

* **

* EBIT w/o amortization of intangibles from PPA, consolidation (€ +1.8 mn) and special effects (€ -15.8 mn)

** EBIT w/o amortization of intangibles from PPA, consolidation (€ +2.7 mn) and special effects (€ -0.4 mn)

(€ millions)

Adj. LTM EBITDA

€ 2,977.1 mn


Highlights

Group Financials




Outlook 2010

Back-up


Agenda


Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/09 Q1/10

Car & light vehicle production Europe & NAFTA (tsd units) 9,246 9,486 7,932 6,938 5,193 6,141 6,600 7,368 7,570

Car & light vehicle productionEurope & NAFTA (%-chg. YOY) -3% -3% -7% -26% -45% -36% -17% 6% 46%

Organic sales growth (YOY in %) n/a n/a n/a n/a -40% -31% -11% 22% 50%

adj. EBIT* margin (in %) 8.2% 7.8% 3.5% 1.9% -5.7% 1.2% 3.0% 6.0% -5.9% 8.0%

chg. YOY in WC (€ mn) 312

2009 vs 2008 2010 vs 2009


FinancialsAutomotive Group - Highlights

Total production volume in Q1/10 increased by 2.4 mn units YOY and by 0.2 mn units QOQ

Sales increased by 50% YOY (Q1/10 vs. Q1/09) and by 9% QOQ (Q1/10 vs. Q4/09)

Organic sales growth again some 4 percentage points above market growth in main markets

Adj. EBIT* margin level almost restored to Q1/08 level after 2 years despite a decrease of 1.7 mn units

Working Capital (WC) under control in Q1/10 although sales increased by € 1.2 bn compared to Q1/09


Market

Co

nti


-14

5.9

29

9.9

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10


FinancialsAutomotive Group: Continuation of Recovery

Sales increased by € 1,249 mn in Q1/10 compared to Q1/09 and by 9% QOQ

Adj. EBIT* increased by € 446 mn driven by volume recovery and strict cost control

Adj. EBIT* margin up to 8.0%

Sales (€ million) Adj. EBIT* (€ million) and adj. EBIT* margin

Chg. YOY

+1,249


-5.9%

8.0%

+446

2,5

21

.3

2,8

37

.8

3,2

23

.0

3,4

60

.3

3,7

70

.3

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10

-42.1%-31.3%

-7.7%18.3%

49.5%


1,354.4

1,105.5

1,340.3

29.9

3,770.3

C&S PT I cons. total

35.9%

61.5%

56.0%

50.1%


Reported sales increased by 49.5%

Chassis & Safety 56.3%

Powertrain 60.1%

Interior 35.3%

Financials Automotive Group: Overview Q1 2010

Automotive Group: Sales by division and organic growth

(€ million)

Adj. EBIT* and adj. EBIT* margin by division

(€ million)

EBITDA increased by € 426.3 mn to € 472.4 mn (PY € 46.1 mn)

Capex spending declined by € 43.8 mn to € 106.1 mn (2.8% of sales)

R&D expenses declined by 3.4% to € 318.4 mn (8.4% of sales)

Organicsales growth


-

163.122.0

114.8 0.0 299.9

C&S PT I cons. total

12.0%

2.0%

8.6% 8.0%



Restructuring at PowertrainPowertrain: Continuous Improvement Since Q4/08

(€ million)

*


Committed to reach sustainable break-even on adj. EBIT level in 2011

Mid-term margin target at least 8% on reported level

1,294.4

1,076.0

912.9

756.7690.5

797.0907.4

1,004.31,105.5

-102.0

22.0

Q1/08 Q3/08 Q1/09 Q3/09 Q1/10

Sales

adj. EBIT

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10


Highlights

Group Financials




Outlook 2010

Back-up


Agenda


1,715 1,629

1,1251,297

8.2% 3.7%-5.8%

2.1%

-10.0%

10.0%

30.0%

50.0%

-200.0

300.0

800.0

1,300.0

1,800.0

Q1/07 Q1/08 Q1/09 Q1/10

Volumes ww EBIT margin

6.0%

-23.6%

28.0%

-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%40.0%

010,00020,00030,00040,000

Q1/07 Q1/08 Q1/09 Q1/10

Volume ww Chg yoy


Financials Rubber Group – Highlights

RT market Europe + 11% / NAFTA +10%

Strong volume recovery – gained MS in RT Europe and Americas in Q1 2010

Volumes almost restored to Q1 2008 levels

Increased tire prices in Europe by 3% to 5% starting May 2010 and by 6% in the US starting June 2010

Profitability restored on much lower volumes

Decision on plant closure in Stoecken

Strong recovery in OE business

Industry business at previous year level

Mix OE / non-OE improved to 55/45 in Q1

Raw material price increases will impactRubber Group in the coming quarters

PL

TC

VT

Co

nti

Te

ch 781 798

569702

11.8% 12.6%6.1%

13.1%

0.0%

10.0%

20.0%

30.0%

40.0%

0.0

500.0

1,000.0

Q1/07 Q1/08 Q1/09 Q1/10

Sales EBIT margin


12

0.7

32

0.0

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10


FinancialsRubber Group: Raw Material Prices Start to Affect Earnings in Q2

Sales (€ million)

+448 +199

Sales increased by € 448 mn and are at nearly the same level as in Q4 2009 due primarily to strong replacement tire shipments in Q1 2010

Adj. EBIT* up by € 199 mn and almost unaffected from increasing raw material prices

Raw material cost will be a burden in 2010 – target to compensate gross impact by price increases, mix improvements and efficiency gains

Chg. YOY


6.8%

Adj. EBIT* (€ million) and adj. EBIT* margin

14.5%

1,7

83

.6

1,9

26

.8

2,1

18

.0

2,2

39

.9

2,2

31

.9

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10

-22.2% -22.5%

-11.9%

3.2%

25.1%



Reported sales increased by 25.1%

ContiTech 23.5%

Passenger and Light Truck Tires 28.7%

Commercial Vehicle Tires 18.0%

Financials Rubber Group: Overview Q1 2010

EBITDA increased by € 200.8 mn to € 415.9 mn (PY: € 215.1 mn)

Capex spending decreased by 20.3% to€ 72.3 mn (3.2% of sales)

R&D expenses slightly down by € 0.2 mn at € 56.6 mn (2.5% of sales)

Adjusted EBIT* and adjusted EBIT* margin by divisionRubber Group: Sales by division(€ million)


Organicsalesgrowth

(€ million)

702.3

1,283.0280.8

-34.2

2,231.9

CT PLT CVT cons. total

24.8%

14.4%

22.9%

22.3%

93.2

219.6

7.20.0 320.0

CT PLT CVT cons. total

17.4%

2.6%

13.3%

14.5%


Highlights

Group Financials




Outlook 2010

Back-up


Agenda



Financial indebtednessNet Indebtedness & Gearing Ratio

(€ million)

Equivalent to 189.0%

under IFRS accounting

Interest result Q1 2010 € -153.7 mn:Interest income: € 5.8 mnInterest expenses: € -178.8 mnPositive F/X effects*: € 19.3 mn (mainly not cash effective)

617.5 517.7 525.0 32.8 29.5 28.2 20.4 6.9 0.4 0.1 0.1 13.7 0.1

2,601.1

1,899.0

1,168.6

881.1493.2

1,181.0

10

,85

6.4

10

,48

3.5

11,0

41

.5

9,7

46

.6

9,4

64

.8

8,8

95

.5

8,2

31

.9

168.2%

110.7%

58.9%

30.0%

13.0%25.1%

158.3%

189.6%

210.0%

186.1%

225.9% 219.0%

144.9%

YE YE YE YE YE YE YE YE Q1 H1 9M YE Q1

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Off balance sheet debt Net indebtedness Gearing Ratio

US-GAAP IFRS

*Including effects from changes in fair value of derivative instruments


3,687.8

305.3

5,648.1

32.3 22.1 49.0

2010 2011 2012 2013 2014 later


Financial IndebtednessNext Step: Balance Out Maturity Profile

Cash and undrawn (fully committed) credit lines amounted to € 3.56 bn at March 31, 2010

Tranche D amounted to € 771 mn at end of Q1 2010 and is now accounted as maturity in 2010 but Tranche D will not become due before Aug 2012

Total other maturities (excl. Tranche B) in 2010 and 2011 amount to € 777 mn

2012 maturities from VDO financing:

Tranche C € 5.0 bn

Tranche D at drawn amount

FSF* € 2.45 bn

Possible next step: balance out 2012 maturities by issuance of high yield bond in the course of H1/10

Q1 2010Fully available

credit lines

Cash

1,410

2,151

Q1 2010 Pro-forma for Forward Start Facility

Forward StartFacility

*FSF will pay down outstanding amounts under Tranche B at August 2010

Total maturities 2010 € 1,242

thereof Tranche D € 771 mn;

Tranche D due in 08/2012

Fully availablecredit lines

Cash

1,410

2,151

471.6305.3

5,648.1

32.3 22.1 49.0770.7

2,445.5

2010 2011 2012 2013 2014 later

1,242.3

8,093.6


Highlights

Group Financials




Outlook 2010

Back-up


Agenda


261 253

206

147

272 263225

146

Europe NAFTA Asia RoW

2009 2010

267 210

1,241

129290 250

1,356

141


2009 2010

16.8

8.5

28.2

5.4

17.1

10.7

30.6

5.6


2009 2010

16 15

59

27

17 16

60

28


2009 2010


Outlook 2010Continental – Market Outlook 1/2

PLT RT markets (mn tires)

Truck production (k units)PC & LT production (mn vehicles)

TT RT markets (mn tires)

+2%

+26%

+9%

+4%

+4% +4%

+9% +5%

+9% +19%

+9%

+9%

+7% +8%

+1%

+5%

E E

EE

Source: Global Insight, LMC and own estimates

Old: -1% Old: +20%

Old: +2% Old: +3%



Sales

Adj. EBIT* Rubber

Interest result

Total special items

Raw materials tires

Dividend

Capex

Free cash flow

Adj. EBIT* Automotive

€ 20,095.7 mn

€ 1,035.5 mn

€ -720.8 mn

€ 1,755.4 mn

relief of approx. € 250 mn

none

€ 860.1 mn

€ 1,640.3 mn

€ 192.0 mn

at least +5% and up to +10%

Sustain good 2009 results despite raw material price burden

Depending on possible issuance of HYB up to minus € 750-800 mn

At around € 100 mn

At current natural rubber (>3 US $/kg) burden > € 250 mn

No dividend planned

Expected increase of up to € 400 mn

Ability to generate free cash flow limited: a) Rising capex b) Restructuring from 2009 becomes cash

effectivec) Higher working capital

Possibly triple adj. EBIT* compared to 2009

2009 2010E

Outlook 2010 Continental – Company Outlook 2/2




Thank you for your attention



Disclaimer

This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Citigroup Roadshow, Frankfurt & London, May 10/11, 2010. 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 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 or 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.



Contact

Equity and Debt Markets Relations

Vahrenwalder Str.9 Rolf Woller30165 Hannover Telephone: +49 511 938 1068Germany e-mail: [email protected]: +49 511 938 1163Fax: +49 511 938 1080 Gabriele Collatze-mail: [email protected] Telephone: +49 511 938 1915www.continental-ir.com e-mail: [email protected]



ContinentalFinancial Calendar

2010

Annual Financial Press Conference February 23, 2010

Annual Shareholders’ Meeting April 28, 2010

Q1 Financial Report May 4, 2010

HY Financial Report July 29, 2010

9M Financial Report November 3, 2010

2011

Annual Financial Press Conference February 2011



ContinentalShare Data / ADR Data

Share Data

Bloomberg ticker CON GYReuters ticker CONG.DEISIN number DE0005439004Shares outstandingas of March 31, 2010 200,005,983

ADR Data

Ratio (Ordinary share ADR) 1:1Bloomberg ticker CTTAYReuters ticker CTTAY.PKISIN number US2107712000Type Level 1Trading OTCSponsor Deutsche Bank Trust

Company Americas



Back-up


32

Supervisory Board headed by Prof. Dr. Wolfgang Reitzle

Chairman of the Executive Board

Quality & Environment; Corp. Comm.

17 years of industry experience

Dr. Elmar Degenhart (CEO)

Completion of the Executive Board – 160 Years of Experience

PLT Tires Division


Nikolai Setzer

ContiTech Division

Director of HR and Labor relations


Heinz-Gerhard Wente

Chassis & Safety Division


Dr. Ralf Cramer

Powertrain Division


José Avila

Interior Division


Helmut Matschi

RU

BB

ER

GR

OU

P

AU

TO

MO

TIV

E G

RO

UP

Chief Financial Officer

Finance; Controlling; Law; IT


Wolfgang Schäfer

CV Tires Division

Purchasing


Dr. Hans-Joachim Nikolin


19

.1

-33

5.8

-31

6.7

16

2.3

-29

5.3

-27

1.4

-56

6.7

21

0.0

-19

6.0

-16

7.2

-36

3.2

14

4.9

CF from operating activities

CF used for investing activities

Free cash flow Gearing (%)

Q1/08

Q1/09

Q1/10


HighlightsCash Flow (Q1 2008 to Q1 2010)

(€ millions)


Volumes (YOY chg.) Q1/09 H1/09 9M/09 FY 09 Q1/10

EU production -39% -32% -26% -21% 33%NAFTA production -51% -56% -41% -32% 73%

ESC -38% -31% -20% -8% 71%ABS -47% -37% -28% -17% 71%Booster -34% -28% -20% -8% 62%Caliper -45% -36% -30% -18% 59%Engine ECUs 54%Injectors 90%NOx sensors 41%

PLT tires volumes -24% -23% -17% -11% 28%CVT tire volumes -31% -33% -30% -23% 18%CT organic sales grow th -26.3% -26.8% -23.2% -17.8% 22.9%

Market data tires

PLT RT Europe -10% -11% -9% -6% 11%PLT RT NAFTA -14% -12% -6% -3% 10%

CVT OE Europe -56% -65% -64% -64% -3%CVT OE NAFTA -45% -49% -46% -41% 14%CVT RT Europe -33% -30% -24% -23% 38%CVT RT NAFTA -28% -23% -18% -18% 27%


HighlightsOperations Q1 2010: Volumes Overview

* All market data are based on prel. findings

*

*



HighlightsFinancial Highlights Q1 2010 vs. Q1 2009

Sales Increase of 39.4% to € 5,996.7 mn; Organic sales +38.5%

EBITDA Increased by € 638.8 mn to € 888.3 mn (PY € 249.5 mn)

EBIT Increase to € 494.4 mn (PY € -165.0 mn) Adj. EBIT* increased to € 604.7 mn (10.2% margin);PPA** effect € -112.6 mn; total special effects € -0.4 mn

NIAT*** Increased by 495.0 mn to € 227.7 mn (PY € -267.3 mn)

EPS/Div EPS of € 1.14 (PY: € -1.58)EPS w/o PPA** € 1.54 (PY: € -0.91)

Capex Capex decreased by € 61.7 mn to € 178.1 mn; Capex ratio at 3.0% of salesCapex to depreciation coverage 0.45x

R&D Expenses for research and development down by € 11.5 mn to € 375.0 mn; R&D ratio at 6.3% (PY 9.0%)

Cash flow Operating cash flow improved by € 99.3 mn to € -196.0 mn

Net Debt Net indebtedness down by € 663.6 mn from YE 2009 to € 8,231.9 mn; Gearing at 144.9%; liquidity and undrawn credit lines at Q1 10 at € 3.56 bn

* w/o amortization of intangibles from PPA, consolidation and special effects; ** amortization of intangibles from PPA; *** attributable to the shareholders of the parent,



Financials Automotive GroupChassis & Safety

* **

Sales increase of 56.0% before consolidation and FX effects

EBITDA increased by € 160.9 mn (PY € 68.7 mn)

EBIT increased by € 163.6 mn to € 149.0 mn

Adj. EBIT increased by € 162.7 mn to € 163.1 mn

PPA effect in Q1: € -13.3 mn

Special effects € -0.8 mn

* EBIT w/o amortization of intangibles PPA, consolidation (€ +0.2 mn) and special effects (€ -1.7 mn)

** EBIT w/o amortization of intangibles PPA, consolidation (€ 0.0 mn) and special effects (€ -0.8 mn)

(€ millions)

1,452.9

866.7

1,354.4

15.4%

7.9%

17.0%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin

224.1229.6234.2%

56.3%

adj. EBIT

adj. EBIT margin

0.4 163.1

0.0% 12.0%

68.7



Financials Automotive GroupPowertrain

* **

Sales increase of 61.5% before consolidation and FX effects

EBITDA increased by € 120.7 mn to € 83.4 mn

EBIT increased by € 128.7 mnto € -21.6 mn




* EBIT w/o amortization of intangibles PPA, consolidation (€ -1.2 mn) and special effects (€ -2.7 mn)

** EBIT w/o amortization of intangibles PPA, consolidation (€ +1.7 mn) and special effects (€ -1.3 mn)

(€ millions)

1,294.4

690.5

1,105.5

9.4%

-5.4%

7.5%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin-37.3

83.4323.6%

60.1%

adj. EBIT margin

adj. EBIT -102.0 22.0

-15.1% 2.0%

121.8



Financials Automotive GroupInterior

(€ millions) Sales increase of 35.9% before consolidation and FX effects


EBIT increased by € 156.3 mnto € 54.9 mn




* **



1,656.6

990.6

1,340.3

11.6%

1.5%

11.9%

Q1/08 Q1/09 Q1/10

14.7

159.5

Sales

EBITDA

EBITDA margin

adj. EBIT margin

adj. EBIT -44.3 114.8

-4.6% 8.6%

985.0%

35.3%

192.3



Financials Rubber GroupPassenger and Light Truck Tires





Volumes (worldwide) up by 28% due to strong OE business (OE up by 48%) and strong RT volumes in RT Americas (up by 39%) and Europe (up by 15%)

Raw material prices almost neutral in Q1 2010

Total special effects € -5.8 mn


** EBIT w/o amortization of intangibles PPA, consolidation (€ +1.9 mn) and special effects (€ -5.8 mn)

* **

1,202.9

997.1

1,283.0

16.4% 15.0%

21.4%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin

197.7150.0

274.2

28.7%

82.8%

adj. EBIT margin

adj. EBIT 219.6

17.4%

96.9

9.7%


328.3

238.0

280.8

9.6%

2.9%

9.2%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin

31.6

6.9

25.9

18.0%

275.4%

adj. EBIT margin

adj. EBIT -13.2 7.2

-5.6% 2.6%


Financials Rubber GroupCommercial Vehicle Tires

(€ millions)

* **

Sales increase of 14.4 % before consolidation and FX effects




Volumes ww up by 18%; RT Europe up by 35%; RT Americas up by 41%; OE Europe again down by 7%

Raw material prices already impacted Q1 2010 slightly


* EBIT w/o amortization of intangibles PPA, consolidation (€ -0.1 mn) and special effects (€ -0.3 mn)

** EBIT w/o amortization of intangibles PPA, consolidation (€ -0.9 mn) and special effects (€ -0.4 mn)



Financials Rubber GroupContiTech





OE sales up by 50% vs. Q1 09; Aftermarket sales up 24% and industrial sector sales on par with previous years

Mix OE / non-OE: 55/45


* **



798.4

568.7

702.3

15.7%

10.2%

16.5%

Q1/08 Q1/09 Q1/10

Sales

EBITDA

EBITDA margin

125.6

58.2

115.8

23.5%

99.0%

adj. EBIT margin

adj. EBIT 37.0 93.2

6.6% 13.3%



Quarterly Sales Analysis

(€ millions)

2010Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1

C&S 1.452,9 1.442,3 1.224,4 1.014,4 5.134,0 866,7 1.049,4 1.188,9 1.268,6 4.373,6 1.354,4Powertrain 1.294,4 1.076,0 912,9 756,7 4.040,0 690,5 797,0 907,4 1.004,3 3.399,2 1.105,5Interior 1.656,6 1.639,0 1.387,4 1.173,7 5.856,7 990,6 1.013,7 1.150,5 1.207,9 4.362,7 1.340,3Passenger and Light Truck Tires 1.202,9 1.332,9 1.326,0 1.238,5 5.100,3 997,1 1.118,1 1.240,7 1.340,5 4.696,4 1.283,0Commercial Vehicle Tires 328,3 357,1 385,5 333,3 1.404,2 238,0 239,8 288,7 299,1 1.065,6 280,8ContiTech 798,4 832,5 741,4 634,7 3.007,0 568,7 588,3 614,1 635,0 2.406,1 702,3Other / Consolidation -94,1 -65,2 -85,6 -58,6 -303,5 -49,6 -45,1 -53,3 -59,9 -207,9 -69,6Continental Corporation 6.639,4 6.614,6 5.892,0 5.092,7 24.238,7 4.302,0 4.761,2 5.337,0 5.695,5 20.095,7 5.996,7

Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -40,3 -27,2 -2,9 25,1 -14,8 56,3Powertrain -46,7 -25,9 -0,6 32,7 -15,9 60,1Interior -40,2 -38,2 -17,1 2,9 -25,5 35,3Passenger and Light Truck Tires -17,1 -16,1 -6,4 8,2 -7,9 28,7Commercial Vehicle Tires -27,5 -32,8 -25,1 -10,3 -24,1 18,0ContiTech -28,8 -29,3 -17,2 0,0 -20,0 23,5Continental Corporation -35,2 -28,0 -9,4 11,8 -17,1 39,4

2008 2009



Quarterly EBITDA Analysis

(€ millions)2010

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1C&S 224,1 233,1 186,8 145,9 789,9 68,7 153,3 205,6 174,0 601,6 229,6Powertrain 121,8 72,2 -4,8 -107,6 81,6 -37,3 5,4 -31,1 49,7 -13,3 83,4Interior 192,3 184,1 90,1 90,8 557,3 14,7 -30,9 -5,3 41,9 20,4 159,5Passenger and Light Truck Tires 197,7 237,3 192,7 245,8 873,5 150,0 249,0 283,2 110,9 793,1 274,2Commercial Vehicle Tires 31,6 36,7 27,2 16,9 112,4 6,9 20,7 11,1 8,8 47,5 25,9ContiTech 125,6 137,8 117,0 49,7 430,1 58,2 61,7 80,0 74,1 274,0 115,8Other / Consolidation -9,1 -10,4 -12,6 -41,3 -73,4 -11,7 -11,5 -102,9 -6,0 -132,1 -0,1Continental Corporation 884,0 890,8 596,4 400,2 2.771,4 249,5 447,7 440,6 453,4 1.591,2 888,3

EBITDA margin in %Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1

C&S 15,4 16,2 15,3 14,4 15,4 7,9 14,6 17,3 13,7 13,8 17,0Powertrain 9,4 6,7 -0,5 -14,2 2,0 -5,4 0,7 -3,4 4,9 -0,4 7,5Interior 11,6 11,2 6,5 7,7 9,5 1,5 -3,0 -0,5 3,5 0,5 11,9Passenger and Light Truck Tires 16,4 17,8 14,5 19,8 17,1 15,0 22,3 22,8 8,3 16,9 21,4Commercial Vehicle Tires 9,6 10,3 7,1 5,1 8,0 2,9 8,6 3,8 2,9 4,5 9,2ContiTech 15,7 16,6 15,8 7,8 14,3 10,2 10,5 13,0 11,7 11,4 16,5Continental Corporation 13,3 13,5 10,1 7,9 11,4 5,8 9,4 8,3 8,0 7,9 14,8

Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -69,3 -34,2 10,1 19,3 -23,8 234,2Powertrain -130,6 -92,5 -547,9 146,2 -116,3 323,6Interior -92,4 -116,8 -105,9 -53,9 -96,3 985,0Passenger and Light Truck Tires -24,1 4,9 47,0 -54,9 -9,2 82,8Commercial Vehicle Tires -78,2 -43,6 -59,2 -47,9 -57,7 275,4ContiTech -53,7 -55,2 -31,6 49,1 -36,3 99,0Continental Corporation -71,8 -49,7 -26,1 13,3 -42,6 256,0

2008 2009



Quarterly Analysis of adjusted EBIT*

* EBIT w/o amortization of intangibles from PPA, consolidation and special effects

(€ millions)

Q1 restated Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FYC&S 0,4 163,1Powertrain -102,0 22,0Interior -44,3 114,8Passenger and Light Truck Tires 96,9 219,6Commercial Vehicle Tires -13,2 7,2ContiTech 37,0 93,2Other / Consolidation -11,5 -15,2Continental Corporation -36,7 604,7

Adjusted EBIT margin in %Q1 restated Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY

C&S 0,0 12,0Powertrain -15,1 2,0Interior -4,6 8,6Passenger and Light Truck Tires 9,7 17,4Commercial Vehicle Tires -5,6 2,6ContiTech 6,6 13,3Continental Corporation -0,9 10,2

Changes Y-o-Y in % Q1 Q2 Q3 Q4 FYC&S 40.675,0Powertrain 121,6Interior 359,1Passenger and Light Truck Tires 126,6Commercial Vehicle Tires 154,5ContiTech 151,9Continental Corporation 1.747,7

2009 2010



Quarterly EBIT Analysis

(€ millions)2010

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1C&S 141,1 150,4 103,2 -91,6 303,1 -14,6 71,0 -252,6 93,7 -102,5 149,0Powertrain -10,1 -38,8 -127,5 -869,8 -1.046,2 -150,3 -102,4 -603,6 -86,9 -943,2 -21,6Interior 81,0 46,9 -32,6 -557,9 -462,6 -101,4 -143,0 -202,5 -69,1 -516,0 54,9Passenger and Light Truck Tires 142,2 179,1 133,5 171,6 626,4 92,0 190,8 221,4 32,2 536,4 214,7Commercial Vehicle Tires 12,2 16,1 6,8 -5,6 29,5 -13,7 -0,3 -25,1 -11,0 -50,1 5,9ContiTech 100,4 112,7 92,3 23,7 329,1 34,6 34,9 54,2 45,7 169,4 92,2Other / Consolidation -10,1 -10,7 -13,0 -41,7 -75,5 -11,6 -12,2 -103,6 -7,0 -134,4 -0,7Continental Corporation 456,7 455,7 162,7 -1.371,3 -296,2 -165,0 38,8 -911,8 -2,4 -1.040,4 494,4

EBIT margin in %Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1

C&S 9,7 10,4 8,4 -9,0 5,9 -1,7 6,8 -21,2 7,4 -2,3 11,0Powertrain -0,8 -3,6 -14,0 -114,9 -25,9 -21,8 -12,8 -66,5 -8,7 -27,7 -2,0Interior 4,9 2,9 -2,3 -47,5 -7,9 -10,2 -14,1 -17,6 -5,7 -11,8 4,1Passenger and Light Truck Tires 11,8 13,4 10,1 13,9 12,3 9,2 17,1 17,8 2,4 11,4 16,7Commercial Vehicle Tires 3,7 4,5 1,8 -1,7 2,1 -5,8 -0,1 -8,7 -3,7 -4,7 2,1ContiTech 12,6 13,5 12,4 3,7 10,9 6,1 5,9 8,8 7,2 7,0 13,1Continental Corporation 6,9 6,9 2,8 -26,9 -1,2 -3,8 0,8 -17,1 0,0 -5,2 8,2

Changes Y-o-Y in % Q1 Q2 Q3 Q4 FY Q1C&S -110,3 -52,8 -344,8 202,3 -133,8 1.120,5Powertrain -1.388,1 -163,9 -373,4 90,0 9,8 85,6Interior -225,2 -404,9 -521,2 87,6 -11,5 154,1Passenger and Light Truck Tires -35,3 6,5 65,8 -81,2 -14,4 133,4Commercial Vehicle Tires -212,3 -101,9 -469,1 -96,4 -269,8 143,1ContiTech -65,5 -69,0 -41,3 92,8 -48,5 166,5Continental Corporation -136,1 -91,5 -660,4 99,8 -251,2 399,6

2008 2009



Consolidated Income Statements

(€ millions)

Reconciliation of EBIT to net income Q1 2010 Q1 2009

Chassis & Safety 149,0 -14,6

Powertrain -21,6 -150,3

Interior 54,9 -101,4

Passenger and Light Truck Tires 214,7 92,0

Commercial Vehicle Tires 5,9 -13,7

ContiTech 92,2 34,6

Other / consolidation -0,7 -11,6

EBIT 494,4 -165,0

Net interest expense -153,7 -127,9

Earnings before income taxes 340,7 -292,9

Income tax expense -96,4 31,1

Minority interests -16,6 -5,5

Net income attributable to the shareholders of the parent 227,7 -267,3

Earnings per share (in EUR) 1,14 -1,58

Diluted earnings per share (in EUR) 1,14 -1,58

Number of Shares 200,0 169,0



Consolidated Balance Sheets Assets

Assets in € millions March 31, 2010 Dec. 31, 2009 March 31, 2009

Goodwill 5.622,5 5.536,6 6.420,2

Other intangible assets 2.000,5 2.068,7 2.450,7

Property, plant, and equipment 5.869,2 5.784,3 6.113,9

Investment properties 18,8 19,3 19,8

Investments in associates 392,7 398,0 665,7

Other investments 8,0 8,0 14,2

Deferred tax assets 777,2 728,9 491,0

Deferred pension charges 71,1 70,8 88,9

Long-term derivative instruments and interest-bearing investments 83,7 78,4 20,8

Other long-term financial assets 20,2 18,9 33,3

Other assets 12,2 12,7 9,4

Non-current assets 14.876,1 14.724,6 16.327,9

Inventories 2.333,5 2.076,0 2.568,4

Trade accounts receivable 4.501,3 3.648,1 3.456,0

Other short-term financial assets 212,4 184,9 154,7

Other assets 618,3 540,5 623,1

Income tax receivable 114,2 94,2 134,5

Short-term derivative instruments and interest-bearing investments 18,7 25,8 27,0

Cash and cash equivalents 1.410,3 1.712,8 1.206,5

Assets held for sale 14,1 42,3 46,5Current assets 9.222,8 8.324,6 8.216,7

Total assets 24.098,9 23.049,2 24.544,6



Consolidated Balance Sheets Shareholders’ Equity and Liabilities

Total equity and liabilities in € millions March 31, 2010 Dec. 31, 2009 March 31, 2009

Common stock 512,0 432,6 432,6

Capital reserves 4.137,3 3.139,5 3.120,9

Retained earnings 864,1 636,4 2.017,7

Other comprehensive income -153,9 -435,9 -579,3

Equity attributable to the shareholders of the parent 5.359,5 3.772,6 4.991,9

Minority interests 321,6 289,1 265,1

Total equity 5.681,1 4.061,7 5.257,0

Provisions for pension liabilities and other post-employment benefits 1.383,0 1.345,0 771,3

Deferred tax liabilities 196,5 196,5 398,9

Long-term provisions for other risks 357,3 351,7 418,1

Long-term portion of indebtedness 5.990,8 5.967,7 9.621,5

Other non-current liabilities 36,3 36,2 44,1

Non-current liabilities 7.963,9 7.897,1 11.253,9

Trade accounts payable 2.946,2 2.819,5 2.340,4

Income tax payable 722,4 644,7 523,1

Short-term provisions for other risks 1.325,3 1.342,9 972,1

Indebtedness 3.753,8 4.744,8 2.674,3

Other short-term financial liabilities 900,2 880,3 879,1

Other liabilities 801,9 648,1 603,6

Liabilities held for sale 4,1 10,1 41,1

Current liabilities 10.453,9 11.090,4 8.033,7

Total equity and liabilities 24.098,9 23.049,2 24.544,6



Consolidated Cash Flow Statements

in € millions

2010 2009

EBIT 494,4 -165,0Interest paid -243,9 -246,1Interest received 6,5 10,6Income tax paid -63,4 -38,8Dividends received 19,3 33,5Depreciation and amortization 393,9 414,5At-equity share in earnings of associates and accrued dividend income from other investments -16,5 -6,4Gains/losses from the disposal of assets, subsidiaries and business units 0,9 -0,3Other non-cash items -14,5 —Changes in

inventories -174,1 43,4trade accounts receivable -716,4 -119,5trade accounts payable 33,2 -160,6pension and post-employment provisions 21,8 119,6other assets and liabilities 62,8 -180,2

Cash flow provided by operating activities -196,0 -295,3

Proceeds on disposal of property, plant, equipment and intangible assets 7,4 11,6Capital expenditure on property, plant, equipment and software -178,0 -239,8Capital expenditure on intangible assets from development projects -11,0 -1,3Proceeds on disposal of subsidiaries and business units, including surrendered cash and cash equivalents 23,8 -0,4Acquisition of subsidiaries and business units, incl. acquired cash and cash equivalents -9,4 -42,9Interest bearing advances 0,0 1,4Cash used for investing activities -167,2 -271,4

Cash flow before financing activities -363,2 -566,7

Change in indebtedness -1.058,8 192,4Proceeds from the issuance of shares 1.056,8 —Dividends paid and repayment of capital to minority interests -0,9 -6,0Cash flow provided by/used for financing activities -2,9 186,4

Change in cash and cash equivalents -366,1 -380,3

Cash and cash equivalents at the beginning of the reporting period 1.712,8 1.569,4Effect of exchange rate changes on cash and cash equivalents 63,6 17,4Cash and cash equivalents at the end of the reporting period 1.410,3 1.206,5

January 1 to March 31



First Quarter Results 2010 Reported and AdjustedBy Division

(€ millions)

2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

EBIT -14.6 149.0 -150.3 -21.6 -101.4 54.9 92.0 214.7 -13.7 5.9 34.6 92.2 -11.6 -0.7 -165.0 494.4RoS -1.7% 11.0% -21.8% -2.0% -10.2% 4.1% 9.2% 16.7% -5.8% 2.1% 6.1% 13.1% -3.8% 8.2%

Amortization of intangible assets from PPA 13.5 13.3 44.4 44.0 54.7 53.8 0.9 1.0 0.1 0.0 0.6 0.6 0.1 -0.1 114.3 112.6

Total special effects 1.7 0.8 2.7 1.3 4.8 6.1 4.1 5.8 0.3 0.4 2.2 0.4 0.0 -14.4 15.8 0.4

Total consolidation effects * -0.2 0.0 1.2 -1.7 -2.4 0.0 -0.1 -1.9 0.1 0.9 -0.4 0.0 0.0 0.0 -1.8 -2.7

Total consolidation & special effects 1.5 0.8 3.9 -0.4 2.4 6.1 4.0 3.9 0.4 1.3 1.8 0.4 0.0 -14.4 14.0 -2.3

Adjusted EBIT ** 0.4 163.1 -102.0 22.0 -44.3 114.8 96.9 219.6 -13.2 7.2 37.0 93.2 -11.5 -15.2 -36.7 604.7adj. RoS 0.0% 12.0% -15.1% 2.0% -4.6% 8.6% 9.7% 17.4% -5.6% 2.6% 6.6% 13.3% -0.9% 10.2%

* Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated), disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009 Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects

CVT ContiTech Cons./Corr. GroupChassis & Safety Powertrain Interior PLT



First Quarter Results 2010 Reported and AdjustedAutomotive and Rubber Group

(€ millions)

2009 2010 2009 2010 2009 2010 2009 2010

EBIT -266.3 182.3 112.9 312.8 -11.6 -0.7 -165.0 494.4RoS -10.6% 4.8% 6.3% 14.0% -3.8% 8.2%

Amortization of intangible assets from PPA 112.6 111.1 1.6 1.6 0.1 -0.1 114.3 112.6

Total special effects 9.2 8.2 6.6 6.6 0.0 -14.4 15.8 0.4

Total consolidation effects * -1.4 -1.7 -0.4 -1.0 0.0 0.0 -1.8 -2.7

Total consolidation & special effects 7.8 6.5 6.2 5.6 0.0 -14.4 14.0 -2.3

Adjusted EBIT ** -145.9 299.9 120.7 320.0 -11.5 -15.2 -36.7 604.7

adj. RoS -5.9% 8.0% 6.8% 14.5% -0.9% 10.2%

* Disposal Public Transport Solution since 10/2009, abandonment of Infotainment AM business in 2008, disposal Motor Drives since 4/2008, Synerject since 04/2009 (fully consolidated), disposal ES ACR Diesel (Blythewood, USA) since 10/2009, disposal HEV business (Elma, USA) in 2009, Eu-Retec since 03/2009, ERCO since 07/2009 Rigel since 02/2010, Kolubara since 04/2009, disposal CT Formpolster since 01/2010** before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects

Automotive Rubber Cons./Corr. Group

Q1 2010

citigroup roadshow frankfurt & london may 10/11, 2010 wolfgang schäfer, cfo

Documents

mn slide

continental ag agenda

powertrain rubber group

mn yoy

mn millions

fsf slide

cfo slide

mn units yoy