Due to the following factors, Continental is adjusting its outlook for the 2021 fiscal year:

- Given the ongoing constraints related to semiconductor components as well as uncertainties related to the supply chain and in customer demand, Continental expects that global light vehicle production growth in fiscal 2021 will be between -1% and +1% versus fiscal 2020. The Company's previous outlook from August 5, 2021 assumed global light vehicle production would grow by +8% to +10%.

- Negative effects from cost inflation for key inputs including electronics and electromechanical components for Automotive Technologies, raw materials for Rubber Technologies as well as energy and logistics are becoming more material.

Assuming that exchange rates in the fourth quarter of 2021 do not materially differ to those as of September 30, 2021, the aforementioned factors result in a revised outlook for fiscal 2021 for continuing operations as follows:

- Consolidated sales are expected to be approximately €32.5 to €33.5 billion (previously €33.5 to €34.5 billion) and the adjusted EBIT margin is anticipated to be in the range of approximately 5.2% to 5.6% (previously 6.5% to 7.0%).

- For Automotive Technologies sales of approximately €14.5 to €15.0 billion (previously €16.0 to €16.5 billion) are expected. Due to the lower sales level, an adjusted EBIT margin is expected to be in the range of approximately -2% to -2.5% (previously 0.5% to 1.0%). This outlook continues to consider additional logistics expenses from supply chain constraints related to semiconductor components of about €200 million, while additional expenses for research and development in the business area Autonomous Mobility and Safety are expected to be about €100 to €150 million (previously €150 to €200 million).

- For Rubber Technologies sales of approximately €17.2 to €17.5 billion (previously €17.2 to €17.8 billion) and an adjusted EBIT margin in the range of approximately 12.3% to 12.7% (previously 12.5% to 13.0%) are expected. The adjusted EBIT margin range anticipates higher year-on-year raw material costs of around €550 million (previously €500 million) as well as higher costs for energy and logistics. These effects will predominately affect the Tires business area.

- For Contract Manufacturing sales of approximately €800 to €900 million and an adjusted EBIT margin of approximately 9% are expected.

- Capital expenditures before financial investments are expected to be approximately 6% of consolidated sales (previously 7%).

- Free cash flow before acquisitions, divestments and carve-out effects for continuing and discontinued operations is expected to be in the range of approximately €800 million to €1.2 billion (previously €1.1 to €1.5 billion for continuing operations).

Based on preliminary data, key financial results of the third quarter of fiscal 2021 for continuing operations are as follows:

- Consolidated sales of the Continental Group were €8.041 billion (Q3 2020: €8.679 billion) and the adjusted EBIT margin was 5.2% (Q3 2020: 8.4%). Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -8.5%.

- Sales in Automotive Technologies were €3.477 billion (Q3 2020: €4.132 billion) and the adjusted EBIT margin was -2.3% (Q3 2020: 1.9%). Adjusted EBIT benefitted from a one-time positive effect of approximately €60 million related to the spin-off of Vitesco Technologies, while additional expenses for research and development in the business area Autonomous Mobility and Safety were about €30 million. Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -17.3%.

- Sales in Rubber Technologies were €4.385 billion (Q3 2020: €4.333 billion) and the adjusted EBIT margin was 11.3% (Q3 2020: 15.0%). Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was +0.5%.

- Sales in Contract Manufacturing were €203 million and the adjusted EBIT margin was 11.9%.

- Capital expenditures before financial investments was €484 million (Q3 2020: €368 million).

- Free cash flow before acquisitions, divestments and carve-out effects for continuing and discontinued operations amounted to €12 million (Q3 2020: €1.783 billion) in the third quarter and €1.008 billion for the first nine months of fiscal 2021 (9M 2020: -€197 million).

- Net indebtedness as of September 30, 2021 was €3.964 billion.

The quarterly statement for the third quarter of fiscal 2021 will be released on November 10, 2021.

"Adjusted EBIT" is defined in the Glossary of Financial Terms on page 42 of the 2020 Annual Report, which is available at www.continental-ir.com.