DGAP-News

Continental AG: Continental Raises Cash Flow Forecast for Current Fiscal Year - Seite 2

acquisition of Veyance Technologies. At the end of the first quarter of
2015, the gearing ratio was still at 33.5 percent.

As at March 31, 2016, Continental had a liquidity buffer of EUR5.45
billion, comprising EUR1.7 billion in cash and cash equivalents and EUR3.8
billion in committed, unutilized credit lines. The revolving credit line of
EUR3 billion concluded in April 2014 (part of the syndicated loan with an
originally committed total volume of EUR4.5 billion) was extended for a
further year in April 2016. This financing commitment is now available to
Continental until April 2021. The term loan of EUR1.5 billion included in
the syndicated loan was fully repaid early by the end of March 2016.

Interest expense totaled EUR59 million in the first three months of 2016.
"At EUR34 million, interest expense resulting from bank borrowings, capital
market transactions, and other financing instruments was EUR14 million
lower than the prior-year figure. The major portion related to expense of
EUR21 million from the issued bonds," Schäfer explained. Net interest
expense improved by EUR22 million year-on-year to EUR34 million in the
first quarter of 2016.

In the first three months of the year, Continental invested a total of
EUR398 million in property, plant and equipment, and software. The capital
expenditure ratio thus amounted to 4.0 percent after 3.7 percent in the
comparative period of the previous year. Continental increased its research
and development expenses to fund the start of numerous projects. Compared
with the first quarter of 2015, this figure went up by 11.4 percent to
EUR716 million. This corresponds to a ratio of 7.3 percent of sales after
6.7 percent a year ago.

At the end of the first quarter, Continental had 212,417 employees, which
is 4,500 more than at the end of 2015. This is attributable mainly to the
further expansion of production capacity, sales channels, and research and
development.

In the first three months of this year, the Automotive Group achieved sales
of EUR6.0 billion. The adjusted EBIT margin was 7.6 percent.
In the first quarter of 2016, the Rubber Group generated sales of EUR3.85
billion and increased the adjusted EBIT margin by 3.1 percentage points
year-on-year to 17.8 percent.



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 &