Schaeffler Capital Market PresentationAugust 2015
2
Schaeffler at a glance
Mobility for tomorrow
Financial Results H1 2015
Agenda
123
Schaeffler Group | Capital Market Presentation | August 2015
This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect","intend", "may", "plan", "project“, "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about Schaeffler Group's beliefs andexpectations and the assumptions underlying them. These statements are based on plans, estimates and projections asthey are currently available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of thedate they are made, and Schaeffler Group undertakes no obligation to update any of them in light of new information orfuture events.By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on SchaefflerAG management's current expectations and are subject to a number of factors and uncertainties that could cause actualresults to differ materially from those described in the forward-looking statements. Actual results may differ from those setforth in the forward-looking statements as a result of various factors (including, but not limited to, future global economicconditions, changed market conditions affecting the automotive industry, intense competition in the markets in which weoperate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and otherconditions affecting our markets, and other factors beyond our control).This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal withall aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers,employees or advisers nor any other person makes any representationor warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of theinformation contained in the presentation or of the views given or implied. Neither Schaeffler Group nor any of its directors,officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or anyloss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising inconnection therewith.The material contained in this presentation reflects current legislation and the business and financial affairs of SchaefflerGroup which are subject to change.
Disclaimer
Schaeffler Group | Capital Market Presentation | August 20153
Europe57%Americas
20%
Greater China13%
Asia/Pacific10%
IndustrialOEM16%
Sales by region (2014)
1)
1) EMEA, Russia and India2) China, Hong Kong and Taiwan
Schaeffler at a glance
Leading integrated automotive and industrialsupplier of high-precision components and systemsGlobal footprint with around 84,000 employees atabout 170 locations in more than 50 countriesAbove industry average revenue growth andprofitability
Sales by division (2014)
Key financials(in EUR mn unless otherwise indicated)
AutomotiveOEM61%
2)IndustrialAftermarket
10%
AutomotiveAftermarket
13%
1 Schaeffler at a glance
Leading integrated automotive and industrial supplier
Schaeffler Group | Capital Market Presentation | August 20154
77%23%
2014 H1 2015Sales 12,124 6,732
% growth (y-o-y) 8.2% 12.4%
EBITDA 2,172 1,161
% margin 17.9% 17.2%
EBIT 1,523 818
% margin 12.6% 12.2%
EBIT margin (Automotive) 13.7% 12.8%
EBIT margin (Industrial) 9.2% 10.3%
2)
1 Schaeffler at a glance
Strong track record of above-average growth and profitability
Schaeffler Group | Capital Market Presentation | August 20155
8.39.0 8.9
7.3
9.5
10.711.1 11.2
12.112.9
2006 2007 2008 2009 2010 2011 2012 2013 2014 LTMH1 15
Development of EBIT and EBIT margin 2006 – LTM 2015in EUR bn
Development of sales 2006 – LTM 20151)
in EUR bn
CAGR +5%
4.7% 8.4% -1.2% 17.6% 29.4% 12.6% 4.0% 0.7% 8.2% 11.1%
Sales growth (y-o-y)
12.9% 12.6% 11.7% 6.1% 15.9% 16.2% 13.2% 12.4% 12.6% 12.0%
EBIT margin2)
1.1 1.11.0
0.4
1.5
1.7
1.5
1.0
1.5 1.5
1.4
2006 2007 2008 2009 2010 2011 2012 2013 2014 LTMH1 15
1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH) 2) Before provision for EU antitrust fine of EUR 380 mn
Valve traincomponents
Torqueconverter
Rollingbearings
Strutbearings
Ball screw drives forsteering systems
Wheel bearings
Roll stabilizerBalancer shaft
Thermo-management
Belt & Chaindrive systems
Variablecamshaft timer
1 Schaeffler at a glance
Leader for critical components and systems in automotive
Engine systems
Transmission systems
Chassis systems
Schaeffler Group | Capital Market Presentation | August 20156
1 Schaeffler at a glance
Leading bearing supplier to over 60 industrial sectors
Schaeffler Group | Capital Market Presentation | August 20157
Yoke typeand stud typetrack rollers Axial/radial
roller bearings with anoutside diameterof up to 4,250 mm(up to 12,000 mm availableon special request)
Smallestball bearingwith a 1 mminside diameter
SphericalplainbearingsCylindrical
roller bearingswith disc cage
Radial insertball bearings
Needlerollerbearings
Linear guidance systems
MainspindlebearingsSpherical
rollerbearings
Taperedrollerbearings
Cage-guidedcylindricalrollerbearings
Directdrives
Rotary tablebearings withmeasuringsystem
Enginebearings
Activemagneticbearings
Housings
Integrated global manufacturing and R&D footprint1 Schaeffler at a glance
Schaeffler Group | Capital Market Presentation | August 2015
w Antingw Nanjingw Suzhouw Taicang (3)w Yinchuan (2)
Global footprint
Europe Americas Greater China Asia/Pacific Total
48 14 7 5 74
R&D Centers 9 4 1 2 16
Manufacturing sites
Europe
Mexicow Irapuatow Puebla
Europe
Canadaw Stratford (2)
Brazilw Sorocaba (2)
South Africaw Port Elizabeth w Hosur
w Punew Vadodara (2)
India
Vietnamw Bien Hoa City
Thailandw Rayong
w Ansanw Changwonw Jeonju
South Korea
China
Japanw Yokohama
USw Cheraw (2)w Danburyw Fort Mill (2)w Joplinw Spartanburg
Troyw Wooster
Germanyw Bühlw Herzogenaurachw Homburg (3)w Schweinfurt (2)w + 17 other
German sites
Great Britainw Llanelliw Plymouthw Sheffield
Czech Republicw Lanskroun
Francew Calaisw Chevillyw Haguenau (2)
Spainw Elgoibar
Portugalw Caldas da Rainha
Italyw Momo
Switzerlandw Romanshorn
Austriaw Berndorf-St. Veit
Romaniaw Braşov
Hungaryw Debrecenw Szombathely
Slovakiaw Kysucké Nové Mestow Skalica
Russiaw Uljanowsk
8
9
Quality, Technology and Innovation – More than 2,500 new patents in 20141 Schaeffler at a glance
# 4 # 4 # 4 # 2
Rank in Germany
# 2
1,641
2,518
2014
1,854
20112010
2,100
2012 2013
1,832
4More than 50 quality awards received in 20144 General Motors recognized 24 Schaeffler plants
with "Supplier Quality Excellence Award 2014“4Murakami Seiki recognized Schaeffler China with
"Excellent Quality Award“ for outstanding productquality and service
GM SupplierExcellence Award
Murakami SeikiQuality Award
Number of new patent registrations in Germany1)
Quality Innovation
Schaeffler Group | Capital Market Presentation | August 2015
10
Long-term growth from “Mobility for tomorrow”2 Mobility for tomorrow
Schaeffler Group | Capital Market Presentation | August 2015
… and in IndustrialOffering solutions in Automotive…
4 focus areasKey mega trendsEco-friendly drives1
Interurban mobility3
Urban mobility 2
Energy chain 4
u Urbanizationu Population growth
Society trends
u Increasing complexityu Digitalization
Technology trends
u Renewable energiesu Availability of resources
Environmentaltrends
u Globalizationu Affordability
Economic trends
80
115
150
185
220
2000 2005 2010 2015 2020 2025
gCO
2/km
EU: 95gin 2020
US: 97gin 2025Japan: 122g in
2020
China: 117g in20201)
Combustion engine dominant but will be further electrified...
Eco-friendly drives to increase energy efficiency and reduce CO2 emissions2 Mobility for tomorrow
…to meet CO2 reduction targets
Source: University of Duisburg-Essen, 2012
CO2 legislation enacted worldwidePowertrain concepts
Meeting stringent US 2025 emission targets already today…
Locally developedtechnologies to meetspecific NA fueleconomy demandsand customerrequirements
Economical solutionsachieve 44%improvement in fueleconomy and meet2025 CAFE standards
Technology Improvement (in %)2)
Valve train friction optimization 0.5Balance shaft bearings 0.5Thermal management module 1.0Engine start-stop 3.5AWD disconnect 5TC with optimized damper 1.0Low rolling resistance tires 3.5Ride height adjustment 2.6Transmission Driven Accessories –48V hybrid system 26
Total ~44
2) Denotes fuel reduction potential in %
1) Proposed 2020 targetsSource: icct (November 2014)
98%80%
56%
2%
19%
35%
1%9%
2013 2020 2030
Combustion engine Hybrids Electric
…through comprehensive offering of fuel reduction technologies
Schaeffler Group | Capital Market Presentation | August 201511
1
Schaeffler Group | Capital Market Presentation | August 201512
Mobility and energy chain2 Mobility for tomorrow
Urban mobility2
19905.3bn people
10 megacities (> 10 mn people)
20258.0bn people
37 megacities
Population growth and urbanization
Schaeffler solution
E-bikes /E-scooters
New Energy Vehicles(NEVs)
Source: United Nations, The 2011 Revision
Interurban mobility3
Chinese cities connected by high-speed trains
Mechatronic functions in axlebox bearings
Energy chain4
Global investments in new power plantsand infrastructure 2011 – 2020
Wave power Wind power
Source: Morgan Stanley Research (15-May-11): China High-Speed Rail; On theEconomist Fast Track
Source: International Energy Agency (2011): World EnergyOutlook.
Schaeffler solution Schaeffler solution
Power grids44%(Infrastructure)
Coal12%
Gas6%
Oil 1%Nuclear 6%
Wind 12%
Water 8%
Solar PV 7%Other Regenerative 4%
13
Overview key financials H1 20153 Financial Results H1 2015
1) Prior year figure as per December 31, 20142) Includes EU-antitrust fine of EUR 371 mn paid in June 20143) Net financial debt excl. shareholder loans to LTM EBITDA ratio
in EUR mn H1 14 H1 15 H1 15vs. H1 14 Q2 14 Q2 15 Q2 15
vs. Q2 14
Sales 5,990 6,732 +12.4% 3,014 3,387 +12.4%
EBITDA 1,113 1,161 +4.3% 541 557 +3.0%
EBITDA margin 18.6 17.2 -1.4%-pts. 17.9 16.4 -1.5%-pts.
EBIT 801 818 +2.1% 383 384 +0.3%
EBIT margin 13.4 12.2 -1.2%-pts. 12.7 11.3 -1.4%-pts.
Net income 210 309 +99 mn -10 142 +152 mn
Capex 298 501 +203 mn 143 257 +114 mn
Capex ratio 5.0 7.4 +2.4%-pts. 4.7 7.6 +2.9%-pts.
Free cash flow -3252) -72 +253 mn -3062) -12 +294 mn
Net debt1) 5,778 6,245 +467 mn 5,778 6,245 +467 mn
Leverage ratio1) 3) 2.7 2.8 2.7 2.8 –
Schaeffler Group | Capital Market Presentation | August 2015
14
Sales H1 2015 up 12.4%3 Financial Results H1 2015
Q3
3,387
Q4
3,3453,1003,034
Q1
3,014
Q2
2,976
Q2Q1
2014 2015
Gross profit margin in %
1) Includes positive FX effects of 7.5%
6,732
Salesin EUR mn
54%22%
14%
10%
Americas+26% (+12%)
Greater China+35% (+12%)
Europe+3% (+2%)
Asia/Pacific+12% (-1%)
H1 2015 sales by regionY-o-y growth (w/o FX effects)
H1 2015 sales by divisionY-o-y growth
H1 14 H1 15 y-o-ygrowth
excl. FXeffects
Automotive 4,439 5,064 14.1% 6.9%
Industrial 1,551 1,668 7.5% -0.8%
Total 5,990 6,732 12.4% 4.9%
28.7 27.7 28.9 27.5
28.2
28.3 28.0
28.1
5,990 6,134
+12.4%1)
vs H1 2014
Schaeffler Group | Capital Market Presentation | August 2015
15
Automotive division again strongly outperforms market3 Financial Results H1 2015
Sales development Automotive (w/o FX effects) Sales splitY-o-y growth (w/o FX effects)
Key aspects4 Engine Systems: Ramp-up of new Thermal
Management Module; Strong demand for valve traincomponents (e.g. for UniAir engine)
4 Transmission Systems: Significant growth with TorqueConverters (automatic transmission) and Dual MassFly Wheels
4 Chassis Systems: Strong demand for 3rd generation ofwheel bearings compensates weakness in SouthAmerica and Asia/Pacific
4 Automotive Aftermarket: Strong demand for servicekits in Europe and Americas in second quarter
42%
26%
15%
17%
Engine Systems+18% (+8%)
Chassis Systems+9% (+3%)
Transmission Systems+15% (+7%)
Automotive Aftermarket+13% (+10%)Europe
+3%
Asia/Pacific
+2%
-6%
+13%
+5%
Production of light vehiclesH1/2015 vs H1/2014(IHS Automotive)
+17%
-1%
Americas
+3%
World production : +0.8%Schaeffler Automotive: +6.9%
(w/o FX effects)
Sales growth (w/o FX effects)Schaeffler AutomotiveH1/2015 vs H1/2014
Greater China
Schaeffler Group | Capital Market Presentation | August 2015
16
Industrial division with mixed development across sectors3 Financial Results H1 2015
Key aspects
4 Industrial OEM business with mixed developmentacross sectors
4Mobility: FX-adjusted sales downOrganic growth in Railway and Motorcycle sectorOff-highway equipment (esp. agriculture) remains underpressure
4 Production Machinery: FX-adjusted sales downSlight decrease in tooling machineryTextile and printing machinery remain weak
4 Energy and Raw Materials: FX-adjusted sales upPositive development in renewable energy sector(especially Wind) in Europe and Greater ChinaStabilization in Heavy Industries on a low level but noquick recovery expected
4 Aerospace: FX-adjusted sales slightly down
4 Industrial Aftermarket: FX-adjusted sales slightly up
Sales development Industrial
Sales split
IndustrialAftermarket ~36%
Mobility
Energy and Raw Material
Production Machinery
Aerospace
IndustrialApplications ~64%
H1 14 H1 15 D D excl.FX effects
994 1,063 6.9% -1.4%
557 605 8.6% 0.2%
1,551 1,668 7.5% -0.8%
IndustrialApplications
IndustrialAftermarket
Total
Schaeffler Group | Capital Market Presentation | August 2015
17
EBIT margin H1 2015 12.2%3 Financial Results H1 2015
384434
293
429383
418
Q2Q1Q4Q3Q2Q1
2014 2015EBIT margin in %
818
EBITin EUR mn
14.0 12.7 14.1 9.5 13.0 11.3
801 722
H1 14 H1 15 D H1 14margin
H1 15margin
Din %-pts.
627 647 +3.2% 14.1% 12.8% -1.3
174 171 -1.7% 11.2% 10.3% -0.9
801 818 +2.1% 13.4% 12.2% -1.2
EBIT by divisionin EUR mn
Automotive
Industrial
Total
Key aspects
H1 15 EBIT margin down by 1.2%-points mainly due to:
4 Reduced gross profit margin in Industrial business(-0.5%-pts), mainly due to sales mix effects
4 Increase in R&D and selling expenses on group level(-0.4%-pts)
4 One-off items from antitrust cases (-0.4 %-pts)
+2.1%vs H1 2014
13.4 11.8 12.2
Schaeffler Group | Capital Market Presentation | August 2015
18
Financial Result H1 2015 EUR -337 mn3 Financial Results H1 2015
161176
23
122
375
100
Q2Q1Q4Q3Q2Q1
2014 2015
337
Financial result1)
in EUR mn
1) For presentation purposes negative results are shown as positive figures2) Including non-cash valuation effects of EUR 106 mn from refinancing transaction in Q2 2014
Reconciliation Financial Resultin EUR mn
One-offeffects
refinancingQ2 2015
142
Non-cashvaluation
effects loans /bonds
-184
-11
H12015
as reported
H1 2015excl. one-offs andvaluation effects
337
EUR -138 mnvs H1 2014
475 14523
in EUR mn H1 14 H1 15 D
Cash interest 112 132 20
Accrued interest 54 33 -21
Other 74 -23 -97
Financial Result excl. one-offsand valuation effects 240 142 -98
Non-cash valuation effects 0 11 11
One-off effects refinancing 2352) 184 -51
Reported Financial Result 475 337 -138
Schaeffler Group | Capital Market Presentation | August 2015
19
Net income H1 2015 EUR 309 mn3 Financial Results H1 2015
142
167
215229
-10
220
Q2Q1Q4Q3Q2Q1
2014 2015
309
Net income1)
in EUR mn
210 444
1) Attributable to the shareholders of the parent company
Reconciliation of net incomein EUR mn
13853 309
210
H1 2015Δ Minorities
3
Δ TaxesΔ FinancialResult
Δ EBIT
17
H1 2014
Key aspects
4 Net income increased by EUR 99 mn vs H1 20144 Improved financial result leads to higher net income
Schaeffler Group | Capital Market Presentation | August 2015
20
Free cash flow EUR -72 mn3 Financial Results H1 2015
238184
490439
134
Q2Q1Q4Q3Q2
-1632)
Q1
422-29 929
2014 2015
Free cash flow H1 2015in EUR mn
Operating cash flowin EUR mn
Free cash flowin EUR mn
-19
238
135
-60-12
Q1Q4Q3Q2-3062)
Q2Q1
2014 2015
-72-325 373
-72
501
233
166
2
1731)
158
1,161
Free cashflow
OtherCapexΔWorkingCapital
EBITDA TaxInterest
2) Includes EU-antitrust fine of EUR 371 mn paid in June 20141) One-off effect from refinancing transaction in Q2 2015
Schaeffler Group | Capital Market Presentation | August 2015
21
Working Capital improved – Capex on track3 Financial Results H1 2015
257244
357
202
143155
Q2Q1Q4Q3Q2Q1
2014 2015
In % of sales
1) Cash view
501
Capex1)
in EUR mn
5.2 4.7 6.7 11.5
7.1
7.3 7.6
7.4
298 559
Q2
2,944
Q1
3,022
Q4
2,548
Q3
2,900
Q2
2,778
Q1
2,696
2014 2015
In % of sales
23.6 24.0 24.6 21.0 24.2 22.9
Working capitalin EUR mn
Schaeffler Group | Capital Market Presentation | August 2015
22
Leverage ratio as of June 30, 2015 2.8x3 Financial Results H1 2015
6,2456,1905,7785,7685,7555,529
Q2Q1Q4Q3Q2Q1
2014 2015
Gross debt
Net financial debtin EUR mn
5,751 6,226 6,443 6,414 6,799 6,665
Cash & cash equivalents
222 471 675 636 609 420
Leverage ratio (Net financial debt w/o shareholder loans / LTM EBITDA)
Change in net financial debtin EUR mn
223216 202 36 6,245
H1 2015OtherBondrefinancing2)
RepaymentTerm Loan1)
Δ CashPosition
FX effectQ4 2014
5,778
2.6 2.7 2.6 2.7 2.8 2.8
-210
1) EUR 210 m voluntary prepayment of institutional term loans(EUR 125 m for OpCo and EUR 85 m for Intercompany loan to HoldCo)
2) The value of the bonds issued in April exceeds the value of the redeemed bonds.
Key aspects
4 Net financial debt significantly impacted by FX effects(high portion of US denominated debt)
4 Partial repayment of institutional loans (USD andEUR tranche) on June 30, 2015
4 Leverage ratio stable
Schaeffler Group | Capital Market Presentation | August 2015
23
InnovationQuality
ProfitabilityGrowth
Guidance 2015 unchanged3 Financial Results H1 2015
Employees
Capex Free cash flow
Innovation~3,000 new jobs
6-8% of sales Sustainably positive
Maintain leading positionin patent applications
Sales growth 5-7%1) EBIT margin 12-13%
Quality policy Further improve R&D expenses 5% of sales
1) At constant currency
Schaeffler Group | Capital Market Presentation | August 2015
24
Financial calendar 2015
Results 9M 2015 November 19, 2015Results FY 2015 March 15, 2016
Investor Relations
phone: + 49 9132 82 4440fax: + 49 9132 82 4444Email: [email protected]: www.schaeffler.com/ir
IR contact
Schaeffler Group | Capital Market Presentation | August 2015
25
Overview of current corporate and financing structureBackup
Current structure Financing structure (as of June 2015)
Debt instrument Nominal Interest Maturity Rating
Loans:
Scha
effle
rHol
ding
HoldCo Term Loan (EUR) 500 E+4.50% Oct-19 Not ratedHoldCo RCF (EUR 200 mn) - E+4.50% Oct-19 Not rated
Bonds:6.875% SSNs 2018 (EUR)5) 800 6.875% Aug-18 B1 / B6.875% SSNs 2018 (USD)5) 1.000 6.875% Aug-18 B1 / B6.25% SSNs 2019 (USD)5) 475 6.25% Nov-19 B1 / B5.75% SSNs 2021 (EUR)5) 350 5.75% Nov-21 B1 / B6.75% SSNs 2022 (USD)5) 675 6.75% Nov-22 B1 / B
Loans:
Scha
effle
rGro
up
Senior Term Loan B (EUR) 675 E6)+3.50% May-20 Ba2 /BB-Senior Term Loan B (USD) 1.150 L6)+3.50% May-20 Ba2 /BB-Senior RCF (EUR 1,000 mn) - E+2.75% Oct-19 Not rated
Bonds:
4.25% SSNs 2018 (EUR) 600 4.25% May-18 Ba2 / BB-2.75% SSNs 2019 (EUR) 500 2.75% May-19 Ba2 / BB-3.25% Unsec.Ns 2019 (EUR) 500 3.25% May-19 B1 / B2.50% SSNs 2020 (EUR) 400 2.50% May-20 Ba2 / BB-4.75% SSNs 2021 (USD) 850 4.75% May-21 Ba2 / BB-4.25% SSNs 2021 (USD) 700 4.25% May-21 Ba2 / BB-3.50% SSNs 2022 (EUR) 500 3.50% May-22 Ba2 / BB-4.75% SSNs 2023 (USD) 600 4.75% May-23 Ba2 / BB-3.25% SSNs 2025 (EUR) 600 3.25% May-25 Ba2 / BB-
SchaefflerHolding
Finance B.V.
SchaefflerBeteiligungs-
holding
100%
SchaefflerVerwaltung Zwei
GmbH
SchaefflerVerwaltungs
GmbH
100%
Continental AGSchaeffler AGOpCo
Loans
100%
SchaefflerFinance B.V.
OpCo
Bonds
54.0%
Freefloat
10.0%83.3%
TopCo
HoldCo
OpCo
HoldCo
Bonds
HoldCo
Loans
36.0%
SchaefflerTechnologies
AG & Co. KG
100%
100%
INA-Holding SchaefflerGmbH & Co. KG
Schaeffler HoldingGmbH & Co. KG
16.7%
Guarantee1)
IC LoanEUR 986m+ EUR 270m2)4)
IC LoanEUR 629m3)4)
1) Schaeffler Beteiligungsholding guarantee and Schaeffler Verwaltung Zwei GmbH guaranteeremains in place until Schaeffler requests a guarantee fall-away event. Since the redemption ofthe 2017 bonds, this guarantee fall-away is at the sole discretion of Schaeffler.
2) Loan receivables resulting from capital increase in Dec. '14 (EUR 986m) and residual from previouscash management between Schaeffler AG and Schaeffler Verwaltung Zwei GmbH (EUR270m)3) Loan receivable resulting from capital increase in Dec. '144) Secured by share pledges of 20.4m shares of Continental AG5) Senior Secured PIK Toggle Notes 6) Floor of 0.75 %
Schaeffler Group | Capital Market Presentation | August 2015
26
Overview permitted upstream paymentsBackup
Current structure Financing structure (as of June 2015)1)
OpCo Loan PermittedUpstream Payments
Schaeffler AG
SchaefflerVerwaltungs
GmbH
36% Contidividend
INA HoldingSchaeffler GmbH
& Co. KG
Chart simplifiedfor illustration
purposes
SchaefflerVerwaltung Zwei
GmbH
OpCo Bond PermittedUpstream Payments
HoldCo
BondOpCo
UpstreamCash
Payment
OpCo
10% Contidividend
1) Annual Floor Amount for the financial year 2015 pursuant to Schaeffler AG loan agreement dated27 October 2014 without carry forward amount.2) Permitted Upstream Payments for the financial year 2015 pursuant to the bond indentures ofSchaeffler AG.
LoanOpCo
UpstreamCash
Payment
4 Permitted Upstream Payments in OpCo loan andbond documents allow OpCo cash to be upstreamedeach year, providing material cash interest coverageon HoldCo level
4 Different restricted groups for OpCo loans and OpCobonds define different permitted upstreampayments
4 HoldCo has access to dividends from 46.0% of allContinental shares
4 As per 30 June 2015, the cash balance at SchaefflerVerwaltungs GmbH was EUR 3.1 mn
in EUR mn Q1 Q2 H1 2015
Free Cash Flow OpCo -60 -12 -72
Cash upstream payments Schaeffler AGPermitted upstream payments 20151)
16 254 270325
Cash upstream payments SchaefflerVerwaltung Zwei GmbHPermitted upstream payments 20152)
30 31 61
425
OpCo upstream cash payments
A
B
A
B
Schaeffler Group | Capital Market Presentation | August 2015