25.7 41.1 Number of employees as at June 30^4 233,365 232,023 0.6

1 Capital expenditure on property, plant and equipment, and software. 2 Before changes in the scope of consolidation. 3 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects. 4 Excluding trainees. Development of the group sectors

Sales in the Automotive Technologies group sector increased in the second quarter by 47.8 percent to ?3.8 billion (Q2 2020: ?2.6 billion). The adjusted EBIT margin came to -1.6 percent (Q2 2020: -19.0 percent), and organic growth came to 57.4 percent. The worsening supply situation for semiconductors as well as the resulting lower sales figures and higher expenses for freight costs put pressure on sales and earnings. The increased freight costs amounted to around ?60 million in the second quarter (and around ?110 million for the first half of 2021).

Irrespective of this, Continental demonstrated its technological expertise and future viability in the first half of the year by generating numerous orders. For example, it received a major order for a display solution across the entire cockpit width of a production vehicle from a global automotive manufacturer. The sales volume for this amounts to more than ?1 billion over the entire life of the product, so that Continental now has a total order volume for display solutions of around ?5 billion. In addition, the DAX-listed company further increased its software development capacity in China in order to further strengthen its local expertise in the growing Chinese market. Specifically, it recently opened a development center for software and systems in Chongqing, in the southwest part of the country.

The Rubber Technologies group sector once again demonstrated its strength in the second quarter. Its sales were up 46.9 percent to ?4.3 billion (Q2 2020: ?3.0 billion), while its adjusted EBIT margin was 14.6 percent (Q2 2020: 1.2 percent). Organic sales growth came to 50.4 percent. The Tires business area performed particularly well, benefiting from a strong replacement-tire business for trucks and passenger cars across the globe. Continental tires are also proving themselves in the electric vehicle segment. In 2020, six of the world's ten highest-volume manufacturers of electric vehicles relied on Continental technology for their original equipment. From 2022, Continental will take a further step toward sustainability by enabling the use of recycled polyethylene terephthalate (PET) bottles in tire production. This will involve the extraction of sustainable polyester yarn from the PET bottles using a mechanical process, completely replacing conventional polyester.

The ContiTech business area is further stepping up the digitalization of its products and expanding its expertise in the area of Industry 4.0. To this end, Continental has acquired a minority stake in the start-up company Feelit. Feelit provides cutting-edge predictive maintenance solutions for various industrial equipment and machinery based on proprietary hardware sensors and dedicated algorithms. The start-up has developed a structural sensing technology that is up to 50 times more accurate than current standard market solutions and takes the predictive maintenance of industrial equipment and machines to a new level thanks to its corresponding cloud connection. Continental also supplies surface materials to all premium manufacturers of electric vehicles worldwide. In the case of electrically powered vehicles, the focus is increasingly on sustainable and recycled materials.

"In this way, and in many other cases, Continental products are not only good for our business, but also for our carbon footprint," said Setzer, adding: "With our roadmap to 2050, we have laid a solid foundation for sustainability. Part of the roadmap relates to emission-free vehicles: from 2022, Continental will make its global business for emission-free vehicles carbon-neutral."

The Powertrain Technologies group sector achieved sales of ?1.8 billion (Q2 2020: ?1.1 billion, +61.6 percent) and an adjusted EBIT margin of 9.5 percent (Q2 2020: -16.3 percent) in the second quarter. Organic growth for the second quarter of 2021 came to 63.5 percent. Due to the application of IFRS 5 as a result of the resolved spin-off of Vitesco Technologies, depreciation and amortization in the Powertrain Technologies group sector have been suspended within the consolidated financial statements of Continental AG since March 16, 2021. This affects the adjusted EBIT margin, among other things. Excluding the application of IFRS 5, the adjusted EBIT margin would have been 3.5 percent in the second quarter of 2021.

Key figures for the group sectors (continuing operations and discontinued operations)

January 1 to June 30 Second Quarter Automotive Technologies in ? millions 2021 2020 ? in % 2021 2020 ? in % Sales 7,869.7 6,740.4 16.8 3,782.8 2,560.0 47.8 EBITDA 574.5 139.6 311.5 173.9 -287.3 160.5 in % of sales 7.3 2.1 4.6 -11.2 EBIT 62.3 -401.9 115.5 -77.3 -552.6 86.0 in % of sales 0.8 -6.0 -2.0 -21.6 Capital expenditure^1 351.2 390.2 -10.0 209.0 196.6 6.3 in % of sales 4.5 5.8 5.5 7.7 Number of employees as at June 30^2 93,207 93,936 -0.8 Adjusted sales^3 7,869.7 6,547.3 20.2 3,782.8 2,435.7 55.3 Adjusted operating result (adjusted EBIT)^4 121.0 -387.5 131.2 -61.5 -463.8 86.7 in % of adjusted sales 1.5 -5.9 -1.6 -19.0

January 1 to June 30 Second Quarter Rubber Technologies in ? millions 2021 2020 ? in % 2021 2020 ? in % Sales 8,584.6 6,933.2 23.8 4,349.2 2,961.5 46.9 EBITDA 1,769.5 942.3 87.8 901.2 291.3 209.4 in % of sales 20.6 13.6 20.7 9.8 EBIT 1,201.5 338.0 255.5 618.3 -8.4 7,460.7 in % of sales 14.0 4.9 14.2 -0.3 Capital expenditure^1 245.3 338.5 -27.5 155.3 174.3 -10.9 in % of sales 2.9 4.9 3.6 5.9 Number of employees as at June 30^2 100,393 99,490 0.9 Adjusted sales^3 8,584.5 6,926.7 23.9 4,349.2 2,958.6 47.0 Adjusted operating result (adjusted EBIT)^4 1,251.5 417.4 199.8 636.7 36.2 1,658.8 in % of adjusted sales 14.6 6.0 14.6 1.2

January 1 to June 30 Second Quarter Powertrain Technologies in ? millions 2021 2020 ? in % 2021 2020 ? in % Sales 3,825.9 2,960.2 29.2 1,827.7 1,131.2 61.6 EBITDA 337.9 25.2 1,240.9 165.4 -91.3 281.2 in % of sales 8.8 0.9 9.0 -8.1 EBIT 153.9 -267.2 157.6 116.6 -244.3 147.7 in % of sales 4.0 -9.0 6.4 -21.6 Capital expenditure^1 123.1 164.2 -25.0 75.3 60.0 25.5 in % of sales 3.2 5.5 4.1 5.3 Number of employees as at June 30^2 39,312 38,150 3.0 Adjusted sales^3 3,825.9 2,960.2 29.2 1,827.7 1,131.2 61.6 Adjusted operating result (adjusted EBIT)^4 250.5 -172.0 245.6 173.9 -183.9 194.6 in % of adjusted sales 6.5 -5.8 9.5 -16.3

1 Capital expenditure on property, plant and equipment, and software. 2 Excluding trainees. 3 Before changes in the scope of consolidation. 4 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2020, Continental generated sales of ?37.7 billion and currently employs around 233,000 people in 58 countries and markets. In 2021, the company celebrates its 150th anniversary. Press contact

Marc Siedler Spokesman, Business & Finance Continental Phone: +49 511 938-1278 Cell: +49 151 24506041 E-mail: marc.siedler@conti.de

Vincent Charles Head of Media Relations Continental Phone: +49 511 938-1364 Cell: +49 173 3145096 E-mail: vincent.charles@conti.de Press portal: www.continental-press.com Media center: www.continental.com/media-center Twitter: @conti_press -----------------------------------------------------------------------------------------------------------------------

2021-08-05 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de ----------------------------------------------------------------------------------------------------------------------- Language: English Company: Continental AG

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