Continental (CON) Investor Update summary

Strategic transformation and independence plans

• The group is undergoing its most far-reaching realignment, aiming to create three independent champions: Automotive, Tires, and ContiTech, each with a pure play focus and enhanced value creation.

• ContiTech's independence is planned, with a sale considered the most probable option, targeted for 2026 after the Automotive spin-off and OESL divestiture.

• The OESL carve-out and sale process is progressing, aiming for completion within 2025, to increase ContiTech's industry share to around 80%.

• Spin-off of the Automotive Group is prioritized for 2025, with shareholder approval targeted for April and Frankfurt listing by September.

• Preparatory measures, including transfer of group functions and structural adjustments, are already underway, with 85% of group employees transferred.

Execution roadmap and capital market readiness

• Automotive spin-off documentation has been published, with the AGM scheduled for April 25th and listing targeted for September 2025.

• Capital market days are planned for June 24th (Automotive) and June 25th (Tires and ContiTech), with further transaction details for ContiTech to be shared.

• The group is prioritizing execution, ensuring all steps are taken in parallel where possible, and maintaining clear communication with teams.

• Spin-off and transaction preparations are scheduled throughout 2025, with execution phases extending into 2026.

• Dividend payout ratio for RemainCo is set at 40-60%, with proceeds from ContiTech's sale potentially used for deleveraging or shareholder returns.

Business segment updates and market positioning

• Tires segment remains resilient, with €13.9 billion in 2024 sales, a 13.7% adjusted EBIT margin, and a focus on value creation and margin improvement.

• ContiTech is positioned as a material solutions powerhouse, focusing on industrial and surface solutions, with €4.5 billion in sales and 8.1% margin in 2024.

• OESL's sale will further sharpen ContiTech's industrial profile, targeting 80% industry business and strong aftermarket growth.

• Automotive sector employs 92,000, generated €19.4 billion in 2024, and is set for a Frankfurt Stock Exchange listing in September 2025.

• Limited synergies between Tires and ContiTech support the move to independence for both sectors.