DGAP-News: Continental AG

DGAP-News: Continental AG: After a Good Start to 2016, Continental Raises Margin Forecast

DGAP-News: Continental AG / Key word(s): Quarter Results/Change in Forecast Continental AG: After a Good Start to 2016, Continental Raises Margin Forecast

29.04.2016 / 08:30 The issuer is solely responsible for the content of this announcement.

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- Automotive supplier publishes key data at its Annual Shareholders' Meeting - Sales rise three percent to EUR9.85 billion in first quarter - Adjusted EBIT of EUR1.1 billion - Forecast for adjusted EBIT margin raised to around 11 percent - Incoming orders in automotive business up by more than one-third

Hanover, April 29, 2016. The technology company Continental made a good start to the year in an economic environment that proved difficult as expected. In the first quarter of 2016, the automotive supplier, tire manufacturer, and industrial partner increased its sales by three percent year-on-year to EUR9.85 billion. Negative exchange-rate effects had reduced this sales growth by 2.1 percentage points. Adjusted EBIT climbed to EUR1.1 billion. At 11.3 percent, the adjusted EBIT margin was higher than the previous year's level of 10.6 percent.

"In light of the difficult market environment, we had a good start to the new fiscal year. This was primarily attributable to volume growth in our Tire division and the stabilization of industrial business at ContiTech. We expect the good development in the Rubber Group to continue over the remainder of the year, while the Automotive Group is expected to gain notable momentum again. For this reason, we are raising our forecast for the corporation's adjusted EBIT margin from more than 10.5 percent to around 11 percent," said Dr. Elmar Degenhart, Continental's chairman of the Executive Board, at the presentation of the key data for the first three months during the Annual Shareholders' Meeting in Hanover on Friday. "We significantly increased our sales volumes for tires and other products in the field of rubber and plastics technology compared with the previous year. Overall, the Rubber Group achieved sales growth of more than five percent after adjustment for exchange-rate effects and changes in the scope of consolidation. In the Automotive Group, this figure was almost three percent, slightly exceeding market growth," explained Degenhart. He added: "As anticipated, the Automotive Group's start to the year was slightly above the level of 2015. Accelerating growth was slowed by the relatively sluggish start of production at some of our main customers at the beginning of the year. Furthermore, project starts and exchange-rate effects had a negative impact on the Automotive Group compared to the previous year, but the Group is expected to gain notable momentum as the year goes on.

Degenhart continues to view the medium-term growth trend in automotive electronics business as positive: "A very pleasing development is the rise in order intake in the divisions of our Automotive Group. Compared with the same period of the previous year, life-time sales acquired in the Automotive Group increased by more than one-third to a total of over EUR9 billion. This significant growth once again demonstrates our customers' trust in our systems and technological expertise."

Continental will present its business figures for the first quarter of 2016 on May 4.

Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tire manufacturer, and industrial partner provides sustainable, safe, comfortable, individual, and affordable solutions. In 2015, the corporation generated sales of EUR39.2 billion with its five divisions, Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental currently employs more than 212,000 people in 55 countries.

Press contact Vincent Charles Spokesman Business & Finance Continental AG Phone: +49 511 938-1364 Cell: +49 173 314 50 96 E-mail: vincent.charles@conti.de

Dr. Felix Gress Senior Vice President Corporate Communications Continental AG Phone: +49 511 938-1485 E-mail: felix.gress@conti.de This press release is available in the following languages: German, English

Press portal: www.continental-press.com Financial reports: www.continental-ir.com Video portal: http://videoportal.continental-corporation.com Media database: http://www.continental-mediacenter.com

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29.04.2016 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.

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Language: English Company: Continental AG Vahrenwalder Straße 9 30165 Hannover Germany Phone: +49 (0)511 938-1068 Fax: +49 (0)511 938-1080 E-mail: ir@conti.de Internet: www.conti.de ISIN: DE0005439004 WKN: 543900 Indices: Dax Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg, Hanover, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Munich; Terminbörse EUREX; Luxemburg, SIX End of News DGAP News Service ---------------------------------------------------------------------------

459037 29.04.2016