Due to the following factors, Continental is adjusting its outlook for fiscal 2022:

- Continental expects global production of passenger cars and light commercial vehicles to increase by between 4% and 6% year-on-year in 2022. The company's outlook published on March 9, 2022, was based on anticipated growth of between 6% and 9%.

- Negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics for Tires and ContiTech are becoming significantly more material.

Assuming that as the year progresses, exchange rates do not materially differ to those in the first quarter of 2022, the aforementioned factors mean that the following changes have been made to the 2022 outlook:

- Consolidated sales are expected to be around €38.3 billion to €40.1 billion (previously: €38 billion to €40 billion), and the adjusted EBIT margin is expected to be between around 4.7% and 5.7% (previously: around 5.5% to 6.5%).

- For the Automotive group sector, Continental expects sales of around €17.8 billion to €18.8 billion (previously: around €18 billion to €19 billion) and, as a result of the lower sales expectations, an adjusted EBIT margin in the range of around -0.5% to 1% (previously: around 0% to 1.5%). This still includes higher procurement and logistics expenses of around €1 billion as well as additional expenses for research and development of around €100 million in the Autonomous Mobility business area.

- For the Tires group sector, sales are now expected to be around €13.8 billion to €14.2 billion (previously: around €13.3 billion to €13.8 billion), with an adjusted EBIT margin of around 12.0% to 13.0% (previously: around 13.5% to 14.5%). The adjusted EBIT margin range assumes a year-on-year increase in procurement and logistics costs of around €1.9 billion (previously: around €1 billion).

- For the ContiTech group sector, Continental expects sales of around €6.3 billion to €6.5 billion (previously: around €6.0 billion to €6.3 billion) and an adjusted EBIT margin of around 6.0% to 7.0% (previously: around 7.0% to 8.0%). The adjusted EBIT margin range assumes a year-on-year increase in procurement and logistics costs of around €600 million (previously: €300 million).

- For the Contract Manufacturing group sector, sales of around €600 million to €700 million and an adjusted EBIT margin of around 0% to 1.0% are still expected.

- Capital expenditure before financial investments is expected to total around 6% of sales (previously: less than 7%).

- In fiscal 2022, free cash flow of around €0.6 billion to €1.0 billion (previously around €0.7 billion to €1.2 billion) is expected before acquisitions and divestments.

In the event the geopolitical situation, in particular in Eastern Europe, remains tense or worsens, it could result in further lasting consequences for production, supply chains and demand. In addition, further negative effects could arise as a result of the ongoing COVID-19 pandemic and the related supply situation. Depending on the severity of the disruption, this may result in lower sales and especially earnings in all group sectors as well as for the Continental Group compared to the prior year.

Based on preliminary data, the following are the key financial results for the first quarter of fiscal 2022, showing the figures for continuing operations in the reporting and comparative periods:

- Consolidated sales amounted to €9.3 billion (Q1 2021: €8.6 billion), and the adjusted EBIT margin was 4.7% (Q1 2021: 8.5%). Before changes in the scope of consolidation and exchange- rate effects, sales increased year-on-year by 5.3%.

- Sales in the Automotive group sector were €4.2 billion (Q1 2021: €4.1 billion), and the adjusted EBIT margin was -3.9% (Q1 2021: 2.4%). Before changes in the scope of consolidation and exchange-rate effects, sales were down year-on-year by 1.2%.

- Sales in the Tires group sector were €3.3 billion (Q1 2021: €2.7 billion), and the adjusted EBIT margin was 17.1% (Q1 2021: 16.6%). The adjusted EBIT margin benefited from a special effect of around €200 million. This took into account in the inventory valuation the increased procurement and manufacturing costs. Before changes in the scope of consolidation and exchange-rate effects, sales increased year-on-year by 17.4%.

- Sales in the ContiTech group sector were €1.6 billion (Q1 2021: €1.5 billion), and the adjusted EBIT margin was 5.4% (Q1 2021: 10.2%). Before changes in the scope of consolidation and exchange-rate effects, sales increased year-on-year by 3.6%.

- Sales in the Contract Manufacturing group sector were €210 million (Q1 2021: €265 million), and the adjusted EBIT margin was 5.8% (Q1 2021: 24.5%).

- Capital expenditure before financial investments totaled €444 million (Q1 2021: €243 million).

- Free cash flow before acquisitions and divestments was -€174 million in the first quarter.

- Net indebtedness as at March 31, 2022, was €4.1 billion.

The quarterly statement for the first quarter of 2022 will be released on May 11, 2022.

"Adjusted EBIT" is defined in the glossary of financial terms on page 24 of the 2021 annual report, which is available at www.continental-ir.com.