Continental : H1 Präsentation August 2023

H1 2023 Results

Hanover - August 9, 2023

Ticker: CON

ADR-Ticker: CTTAY http://www.continental-ir.com

Katja Dürrfeld - CFO

Agenda

1. Group Highlights
2. Automotive
3. Tires
4. ContiTech
5. Cash Flow
6. 2023 Outlook
   Back-up and Fact Sheets 2022 - H1 2023

H1 2023 Results	© Continental AG	Public	August 9, 2023	2

1 | Group Highlights

Most Important KPIs for Q2 2023

		Q2 2022		Q2 2023
Sales		€9.4 bn		€10.4 bn
Adjusted EBIT1		€401 mn		€497 mn
Adjusted EBIT1 margin		4.3%		4.8%
PPA2		-€38 mn		-€29 mn
Special effects		-€529 mn		-€95 mn
Restructuring		-€64 mn		€19 mn
Impairment		-€444 mn		-€10 mn
Other effects		-€21 mn		-€103 mn
NIAT3,4		-€251 mn		€209 mn
Adjusted free cash flow5		-€687 mn		-€14 mn
Gearing ratio4		37.7%		43.7%
Equity ratio4		38.6%		36.4%
Trailing ROCE6		4.7%		7.0%
Net indebtedness		€5,434 mn		€6,076 mn

Executive Summary

• Automotive price negotiations continuing, signings delayed to H2
• FX a burden in all sectors, particularly weighing on Automotive
• Ongoing strong order intake in Automotive totaling €8.6bn lifetime sales, incl. €4.8bn from partnership with Aurora
• Tires adjusted EBIT1 margin again above guidance corridor, mainly driven by strong price mix, while replacement markets remain under pressure
• Inflationary headwinds in Tires and ContiTech expected to ease

1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects.

2 Amortization of intangibles from PPA.

3 Net income attributable to the shareholders of the parent.

4 The methodology used in the consolidated financial statements for the recognition of uncertain tax positions has been changed. The comparative period has been adjusted accordingly.

5 Free cash flow before acquisitions and divestments.

6 Calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM.

H1 2023 Results	© Continental AG	Public	August 9, 2023	3

1 | Group Highlights

Q2 2023 - Sales and Adjusted EBIT

Sales (€ mn)					Adjusted EBIT1 (€ mn)
Automotive	Tires	ContiTech	Contract	Automotive	Tires	ContiTech	Contract
					Manufacturing				Manufacturing
	20.1%

5,133

4,315

5.5%
3,381	3,459			13.8%	13.7%
		465	474
	7.1%
		1,742		-0.6%
	1,613	-2.5%
		-25.3%
			-107	-32
		179	136

	6.4%
4.9%			4.4%
79	109	2.2%
4	6

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022 2023

2022 2023

Organic growth2

|

Adj. EBIT margin1

1 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects.

2 Before changes in the scope of consolidation and exchange-rate effects.

H1 2023 Results

© Continental AG

Public

August 9, 2023

4

2 | Automotive

Q2 2023 - Sales and Adjusted EBIT

Sales1,2 (€ mn)		Adjusted EBIT3 (€ mn)

Sales

		+20.1%	5,133
	4,315		579
		+32.8%
AM	449		1,002
AN	822	+22.4%
		+20.4%	1,909
SAM	1,602
SMY	600	+13.0%	673
UX	799	+15.8%	929
	Q2 2022		Q2 2023

		-32
		-0.6%
-2.5%	-107
	Q2 2022	Q2 2023

• Sales impact from FX: -1.1%
• Organic growth mainly driven by volume increases and pricing
• Signing for some pricing agreements however delayed

Adjusted EBIT3

• Inflation effects were ~ €250 mn
• Negative effects from currency translation and special freight weighing on profitability
• Pricing carry-over supportive year-over-year

Organic growth4 | Adj. EBIT margin3

1 Without Software and Central Technologies.

2 Due to consolidation effects, the sum of numbers shown in the columns does not match the total sum.

3 Before amortization of intangibles from PPA, changes in the scope of consolidation and special effects.

4 Before changes in the scope of consolidation and exchange-rate effects.

AM: Autonomous Mobility. AN: Architecture and Networking. SAM: Safety and Motion. SMY: Smart Mobility. UX: User Experience

H1 2023 Results	© Continental AG	Public	August 9, 2023	5