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Schaeffler Capital Market PresentationDecember 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 statementsare statements that are not historical facts; they include statements about Schaeffler Group's beliefs and expectations and theassumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to themanagement of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, and Schaeffler Groupundertakes no obligation to update any of them in light of new information or future events.By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on Schaeffler AGmanagement's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differmaterially from those described in the forward-looking statements. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed marketconditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance withapplicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and otherfactors beyond our control).This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal with allaspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers, employees oradvisers 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 any loss howsoeverarising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith.The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler Group whichare subject to change.

Disclaimer

SchaefflerAG - Capital Markets Presentation2

Overview

Business profile and investment highlights

Financial Results 9M 2015

Outlook and Summary

Agenda

123


4

Sales by region (2014)1)

4)

1) Market view (= location of customer)2) China, Hong Kong and Taiwan3) EMEA, Russia and India

Schaeffler at a glanceu Leading integrated automotive and industrial supplier of high-

precision components and systemsu Global footprint with around 84,000 employees at about 170

locations in more than 50 countriesu Balanced business portfolio across sectors, geographies

and diversified customer base with leading market positionsu Sizeable aftermarket exposure contributes to stable

financial performanceu Highly attractive profitability and cash returns

Sales by division (2014)

2014 9M 2015Sales 12,124 9,982% growth (y-o-y) 8.2% 10.6%EBITDA 2,172 1,765% margin 17.9% 17.7%EBIT 1,523 1,251% margin 12.6% 12.5%EBIT margin Automotive 13.8% 13.3%EBIT margin Industrial 9.1% 10.2%

Key financialsin EUR mn unless otherwise indicated

3)

1 Overview

Schaeffler Group – A leading integrated automotive and industrial supplier

Europe57%Americas

20%

Greater China13%

Asia/Pacific10%

IndustrialOEM16%

AutomotiveOEM61%

IndustrialAftermarket

10%

AutomotiveAftermarket

13%

77%23%


2)

3)

1.1 1.11.0

0.4

1.5

1.7

1.5

1.0

1.5

1.31.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 15

Group EBIT EBIT margin (in %)

Development of EBIT2006 – YTD 20151)

in EUR bn

13% margin

Development of sales2006 – YTD 20151)

in EUR bn

1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH)

4.7% 8.4% -1.2% -17.6% 29.4% 12.6% 4.0% 0.7% 8.2% 10.6%

Sales growth (y-o-y)

2) Before provision for EU antitrust fine of EUR 380 mn

1 Overview

Strong track record of above-average growth and profitability

12% margin

12.9% 12.6% 11.7% 6.1% 15.9% 16.2% 13.2% 12.4% 12.6% 12.5%

EBIT margin2)

SchaefflerAG - Capital Markets Presentation

2012

11.2

9M 15

11.1CAGR +5%

10.0

2014

12.1

20132011

10.7

2010

9.5

2009

7.3

9.0

2007

8.9

20082006

8.3

2)

5

933 920978

321361

773860

572

857

743

2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 15

1 Overview

Proactive cash flow management over the cycle


Development of Operating Cash Flow2006 – YTD 20151)

in EUR mn

Development of capital expenditures2006 – YTD 20151)

in EUR mn

1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH)

11.2% 10.2% 11.0% 4.4% 3.8% 7.2% 7.7% 5.1% 7.1% 7.4%

in % of sales

8% of sales

6% of sales

482 246 3942) 3932) 566 304 301 473 4192) 192

Free Cash Flow

900 912

597

2014 9M 152013

1,027

2012

1,133

2011

1,069

2010

890

20092008

1,091

2007

1,021

2006

1,137

2) Adjusted for EU antitrust fine of EUR 371 mn

Best-in-class innovation platform

#4 #4 #4 #2 #2

1 Overview

Our success factors - Quality, technology and innovation

Outstanding application expertise and productiontechnology

Quality, Technology and Innovation:

u More than 50 quality awards in 2014u State-of-the-art Plants, R&D and testing facilitiesu Rank 2 in number of patent registrations in Germany

High level of application and system expertise:

u Automotive: Know-how of the entire drivetrain allowsoffering of customized (patented) solutions

u Industrial: Deep bearings product know-how allowsoffering of high-quality standard as well as customizedsolutions

Unique manufacturing process and production know-howallowing for production of complex parts at low cost, highquality and in high volumes:

u Technology leader in Cold Forming, Forging andHeat Treatment

u In-house Industrial Engineering with more than 9,800people (covers entire manufacturing process)

u In-house Tool Management & Prototyping with more than4,400 people

u In-house Special Machinery department with more than1,400 people

Significant R&D spend1)

in EUR mn

4.9% 4.6% 5.3%% ofsales 5.5% 5.2%

1) 2010 relates to financials of a different entity (Schaeffler VZ GmbH)

1,6411,832 1,854

2,100

2,518

2010 2011 2012 2013 2014

Rank inGermany3)

No of patents registered2)

2) German Patent and Trademark Office3) Overall rank

467495

593 611 626

2010 2011 2012 2013 2014

1

2

3


Automotive customers Industrial customers

Total: ~7,500 customers Total: ~14,500 customers

Other customers ~40%

Top 10 customers

~60% of Automotivesales

Other customers ~85%

Top 10 customers

~15% of Industrialsales

~ 25% ofSchaeffler sales

(9M 15)

~ 75% ofSchaeffler sales

(9M 15)

Top 10 customers Top 10 customers


Customer base – Global and diversified customer base

8

2 Business profile and investment highlights

Valve traincomponents

Torqueconverter

Rollingbearings

Strutbearings

Ball screw drives forsteering systems

Wheel bearings

Roll stabilizerBalancer shaft

Thermo-management

Belt & Chaindrive systems

Variablecamshaft timer

Product offering – Leader for critical components and systems in automotive

~70% of Automotivedivision sales are

non-bearing related(2014)

Engine systems(26% of sales in 9m'15)

Transmission systems(42% of sales in 9m'15)

Chassis systems(15% of sales in 9m'15)



Automotive Aftermarket(18% of sales in 9m'15)

Product offering – Leading bearing supplier to over 60 industrial sectors

~ 85% of Industrial divisionsales are bearing related

(2014)

Yoke typeand stud typetrack rollers Axial/radial

roller bearings with anoutside diameter

of up to 4,250 mm(up to 12,000 mm

available on specialrequest)

Smallestball bearingwith a 1 mm

inside diameter

Sphericalplain

bearingsCylindricalroller bearingswith disc cage

Radial insertball bearings

Needleroller

bearings

Linear guidance systems

Mainspindle

bearingsSphericalroller

bearingsTapered

rollerbearings

Cage-guidedcylindrical

rollerbearings

Directdrives

Rotary tablebearings with

measuringsystem

Enginebearings

Activemagneticbearings

Housings



Industrial Aftermarket(36% of sales in 9m'15)

Industrial Applications(64% of sales in 9m'15)

u Antingu Nanjingu Suzhouu Taicang (3)u Yinchuan (2)

Footprint – Integrated global manufacturing and R&D

Global footprint

Europe Americas GreaterChina Asia/Pacific Total

Manufacturing sites 48 14 7 5 74

R&D Centers 9 4 1 2 16

Europe

Mexicou Irapuatou Puebla

Europe

Canadau Stratford (2)

Brazilu Sorocaba (2)

South Africau Port Elizabeth u Hosur

u Puneu Vadodara (2)

India

Vietnamu Bien Hoa City

Thailandu Rayong

u Ansanu Changwonu Jeonju

South Korea

China

Japanu Yokohama

USu Cheraw (2)u Danburyu Fort Mill (2)u Joplinu Spartanburg

Troyu Wooster

Germanyu Bühlu Herzogenaurachu Homburg (3)u Schweinfurt (2)u + 17 other

German sites

Great Britainu Llanelliu Plymouthu Sheffield

Czech Republicu Lanskroun

Franceu Calaisu Chevillyu Haguenau (2)

Spainu Elgoibar

Portugalu Caldas da Rainha

Italyu Momo

Switzerlandu Romanshorn

Austriau Berndorf-St. Veit

Romaniau Braşov

Hungaryu Debrecenu Szombathely

Slovakiau Kysucké Nové Mestou Skalica

Russiau Uljanowsk

u Manufacturing sitesR&D Centers



… and in IndustrialOffering solutions in Automotive…

4 focus areasKey mega trends

Our strategic concept – Long-term growth from “Mobility for tomorrow”

u Urbanizationu Population growth

Society trends

u Increasing complexityu Digitalization

Technology trends

u Renewable energiesu Availability of resources

Environmentaltrends

u Globalizationu Affordability

Economic trends

Eco-friendly drives1

Interurban mobility3

Urban mobility 2

Energy chain 4

“Mobility fortomorrow”



Overview Strategic targets – "Roadmap Schaeffler 2020" in preparation


Re-energize theIndustrial Division

Continuation of a profitablegrowth strategy based on thekey success factors "Quality,Technology and Innovation"

Grow theAftermarketbusiness

Balanced business portfolio withTop 3 market position

4Automotive / Industrial4OEM / Aftermarket4Regional mix

Extend globalfootprint towardsattractive growthmarkets

Integrated business model usinginternal synergies and leveragingof superior production technology

Industrial

25%

Automotive

75%

25%

OEM75%

Aftermarket

Asia/Pacific

10%Greater

China20%

Americas

25%Europe

45%

Strategic targets 2020Strategic direction

Strategictargets

Status quoanalysis

Strategicinitiatives

1

2

3

Group sales

Group sales

Group sales


Schaeffler equity story



u 9m FX-adjusted sales growth of 6.5%, EBIT-margin at 13.3%

u Best-in-class business with superior growth and margin profile

u Out-performance of global light vehicle production on averageby 6% per annum over the last four years

u 9m FX-adjusted sales growth of -2.2%, EBIT-margin at 10.2%

u Margin upside from CORE program: EBIT-margin target of 13%by 2018

u Strategic sales target: Industrial division contributes 25% toGroup sales by 2020

u Free Cash Flow generation of EUR 192 mn in 9M period withsignificant upside potential from lower interest costs goingforward

u Further deleveraging from operational cash flow (EUR1bn by2018)

1

2

3

3 pillars

Out-performancein Automotive

Margin upsidein Industrial

Upside on FreeCash Flowgeneration

Profitablegrowth


7,658 8,1648,983

6,6707,511

2012 2013 2014 9M 14 9M 15

Sales and EBIT marginin EUR mn

Key aspects

u Engine Systems: Ramp-up of new TMM; strong demand for valvetrain components; Temporary weakness in China

u Transmission Systems: Significant growth in torque converters;growing content with local OEMs in China

u Chassis Systems: Strong demand for 3rd generation of wheelbearings and ball screw drives

u Automotive Aftermarket: Strong demand for service kits inEurope and expansion of product portfolio in Americas


Automotive division again strongly outperforms the market in 9M

Sales and market development Automotive

Growthrate(y-o-y)

+7.0% +6.6% +10.0% +12.6%+8.8%


+4%+6%

Europe Americas Asia/PacificGreater China

+15%

-1%

+7%

-3%

+5%+1%

Production of light vehicles 9M 15 vs 9M 14 (IHS)

Sales growth (w/o FX effects) Schaeffler Automotive 9M 15 vs 9M 14

World production: +1.2%Schaeffler Automotive: +6.5%

(w/o FX effects)

9M 14 9M 15 D Dexcl. FX

effects

1,674 1,937 +15.7% +6.8%

2,814 3,164 +12.4% +5.8%

1,014 1,098 +8.3% +3.0%

1,168 1,312 +12.3% +10.8%

6,670 7,511 +12.6% +6.5%

EngineSystemsTransmissionSystems

Total

ChassisSystemsAutomotiveAftermarket

15

Sales development by business division

1

EBIT -margin 13.5% 13.0%1) 13.8% 13.3%14.2%

Automotive – Best-in-class business with superior growth and margin profile

Combustion engine dominant but will be further electrified...


…to meet CO2 reduction targets

Source: University of Duisburg-Essen, IHS

CO2 legislation enacted worldwidePowertrain concepts

1) Proposed 2020 targetsSource: icct (November 2014)

1

80

115

150

185

220

2000 2005 2010 2015 2020 2025

gCO

2/km

EU: 95gin 2020

US: 97gin 2025

Japan: 122g in2020

China: 117g in20201)

US: 106gin 2020

98%80%

56%

2%

19%

35%

1%9%

2013 2020 2030

Combustion engine Hybrids Electric


2014

Key CO2 emission reduction trends…

Engineu Friction reductionu Efficiency increase

u Thermal managementu Start-Stop systems

Transmissionu Friction reductionu Torsional vibration

isolation

u Increased automationu More gearsu Clutch-by-Wire

Chassisu Friction reductionu Weight reduction

u Power on demandu 48 V solutions

HybridizationElectrification

u Micro&Mild hybridu Full hybridu Plug-In hybrid

u Electric Vehicleu 48 V solutions

...and our market leading solutions

u Most comprehensive product offering for all transmissiontechnologies; broad bearings portfolio

u Outstanding know-how in damper technologies, clutches, torqueconverters and actuators

u Mechatronic systems offeringsu Strong market position in wheel bearings

u High precision components and systems for increased variability incombustion engines

u Dominant market position in valve-train componentsu Innovative Thermal Management Module

u 48V and high-voltage Hybrid modules for Full and Plug-in Hybridsu Complete electric axles for 48V and high-voltage systems for all-

electric driving and implementation of all-wheel drive1) Part of BD Transmission Systems

1)

Automotive – Best-in-class business with superior growth and margin profile



1

u A worldwide applicable plug-in hybrid powertrain with 6.4 kWhbattery, developed in China to fulfill stringent future fuel economytargets

u Hybridized 6-speed dry DCT, enabling on-demand connection of enginethanks to P2 module with 41 kW / 180 Nm e-Motor

u 1.0l, 3-cylinder gasoline turbo engine, 92 kW / 170 Nm, front-wheeldrive

Example: Schaeffler China Concept Car Fuel reduction potential of 25% - 65%

Content per vehicle growth1)

Europe Americas Asia/PacificGreater China

Product content per vehicle 2010

Product content per vehicle 2014

1) Content per vehicle is calculated as ratio of relevant SchaefflerAutomotive sales (excl truck sales, aftermarket sales and FX effects) toregional number of light vehicles produced as calculated by the Company

Source: IHS Automotive for light vehicle production

+8%+7%

+20%

+4%

Global content 2010 (EUR): 61Global content 2014 (EUR): 78

CAGR 2010 – 2014: +6%

0%2%4%6%8%

10%12%14%16%

2008 2009 2010 2011 2012 2013 2014

Schaeffler Automotive European automotive suppliers

Leading sector marginsEBIT margin (%)

3)

2) Schaeffler Automotive 2013 EBIT margins before provision for EU antitrust fine of EUR 380 mn3) European auto suppliers EBIT margins calculated as average of EBIT margins for Autoliv, Brembo, Continental, ElringKlinger, GKN,Hella, Leoni, Norma, Stabilus and ValeoSource: Company filings, FactSet

2)

P2 Hybrid Module with dry disconnection clutch

Dry dual clutch, Electromechanical clutch & gear actuation, control software

Optimized combustion engine: VCT on intake-/exhaust-side & coatedtappets, electric water pump

PROtroniC hybrid powertrain prototype control unit from SchaefflerEngineering

§ Outstanding fuel saving compared to original vehicle:• - 25% with depleted battery• - 65% in plug-in operation

§ Excellent driving dynamics (boost) & comfort

Sales and EBIT marginin EUR mn

Industrial division with mixed development in 9M2 Business profile and investment highlights

Growth rate(y-o-y) -1.6% -10.7% +3.2% +5.0%+2.7%


2014

3,138

2013

3,041

2012

3,406

9M 159M 14

2,4712,354

Sales development Industrial

9M 14 9M 15 D Dex FX effects

1,489 1,571 +5.5% -1.7%

865 900 +4.0% -2.9%

2,354 2,471 +5.0% -2.2%

IndustrialApplications

IndustrialAftermarket

Total

Sales by sector 9M 15 vs 9M 14 (FX-adjusted)

Industrial Aftermarket

Railway

RenewableEnergies

Off Highway Equipment

HeavyIndustries

Power Transmission

Production Machinery

Aerospace

Motorcycle

18

2

EBIT -margin 12.7% 10.7% 9.1% 10.2%12.1%

Key aspects

4 Industrial OEM business with mixed development acrosssectors- Positive development in Renewable Energies, mainly Wind- Continuing weak market in Heavy Industries, especially

Ming and Steel; Weakness in Industrial Transmissions4 Industrial Aftermarket:

- Stable business in Europe- Weakness in North America, mainly Oil & Gas and Mining

related as well as in China



2 Industrial – Growth and margin upside from re-aligning the business

Sales development and profitability below expectation

Delivery performance with room for improvement

Production footprint geared towards Europe

Organizational structure with too much emphasison central functions

1

3

4

Product and business portfolio very broad5

Re-energizingIndustrialDivision

Industrial businesscontributes 25% to Group

salesby 2020

13% EBIT marginby 2018

Re-energizing theIndustrial businessby Program CORE

Decreasing market share with high-volume products2

6

Strategic target

Profitability target

Key issues Industrial division



2 Industrial – Growth and margin upside from re-aligning the business

Indicative implementation plan

2015 2016 2017

Phase 12015

New organization /management team Implementation of lean processes

Enhanced growth

Phase 32018 and beyond

Preparation Implementation of growth initiatives

Preparation

2018

Analysis

Key elements Actions

Optimizedproduct andservice portfolio

u Strengthen high-volume market salesu Balance customized product

business/engineering solutionsu Enforce market penetration of service/

digitalization

High deliveryperformance

u Establish European distribution centers(EDC) with target investment of EUR 200mn to ensure immediate productavailability

u Increase level of standardizationu Implement high runner product program

with 24/48h delivery time

Higher customerorientation

u Strengthen sales organizations in theregions

u Strengthen regional engineering/ customersupport centers

u Establish dedicated global key accountmanagement

Cost savingsand efficiencyimprovements

u Reduce workforce by up to 500 peopleu Re-dimension central departmentsu Drive cost saving program including

material cost, efficiency gains andoverhead reduction

1

2

3

4

Overview of Program CORE

Phase 22016 – 2017

Key achievements CORE in 2015

4 New organization structure with strong regionalfocus agreed; new management team in place

4 Agreement1) with works council regardingheadcount reduction program signed

4 Good progress in particular with respect to EDC2)

(EDC North and South have already startedoperations)

Implementation of cost savings program

1) "reconciliation of interests" 2) EDC = European Distribution Center

4 9M 2015 Cash Flow from operations before one-offsincreased by 21% to EUR 1,085 mn

4 9M 2015 Capex significantly increased to EUR 743 mn(9M 2014: EUR 500 mn); Capex ratio of 7.4% in linewith guidance

4 Strong Free Cash Flow generation in Q3 2015 withEUR 264 mn


Strong underlying free cash flow generation2 Business profile and investment highlights

3

Free cash flow developmentin EUR mn

2014 2015

264

-12-60

135238

-19

Q2 Q3Q1Q4Q3Q2

-3065)

Q1

2014 9M 14 9M 15

EBITDA 2,172 1,703 1,765

Interest paid (520) (388) (430)

Interest received 8 4 41

Income taxes paid (277) (197) (247)

Working capital change1) (121) (428) (273)

Others2) (362) (284) 56

CF from Operations 900 410 912

One-time effects 4853) 4853) 1734)

CF from Op. before one-offs 1,385 895 1,085

Capex (857) (500) (743)

in % of Sales 7.1% 5.5% 7.4%

Others 5 3 23

CF from Investments (852) (497) (720)

Free Cash Flow 48 -87 192

FCF before one-offs 533 398 365

1) Working capital change incl. changes in inventories, trade receivables and trade payables. 2) Othersincl. dividends received, (gains)/losses on disposal of assets, changes in provisions for pensions/similarobligations and changes in other assets, liabilities and provisions. 3) EUR 114 mn refinancing chargesand EUR 371 mn reversal of EU antitrust provisions. 4) EUR 173 mn refinancing charges for earlyredemption of bond. 5) Includes EU-antitrust fine of EUR 371 mn

192-875)

Key aspects


Cash flow generation – Further deleveraging expected going forward2 Business profile and investment highlights

3

EUR 6.0 bn1)

2.7x

2.3 x

< 1.5x

Deleveragingfrom IPO

Net debtafter IPO

Deleveragingfrom operating

cash flow

Mid-termtarget

30/9/2015Pro Forma

30/09/201531/12/2018

2018 leverage target

EUR 1 bn

825 mn

1) Before Loan Note Receivable of EUR 1.885 mn

4 Target structure implemented; Proceeds used forstrategic deleveraging

4 Further repayment of loan note and indebtednessexpected in Q4 2015

4 Pro Forma leverage ratio as of 30/09/2015 at 2.3x;Target leverage ratio 1.5x by 2018

Key elementsQ2

6,245

Q1

6,190

Q4

5,778

Q3

5,768

Q2

5,755

Q1

5,5295,950

Q3

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)

2.6 2.7 2.6 2.7 2.8 2.8 2.7

6,674

724

3 Financial Results 9M 2015

Overview key financials 9M 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 9M 14 9M 15 9M 15vs. 9M 14 Q3 14 Q3 15 Q3 15

vs. Q3 14

Sales 9,024 9,982 +10.6% 3,034 3,250 +7.1%

EBITDA 1,703 1,765 3.6% 590 604 +2.4%

EBITDA margin 18.9 17.7 -1.2%-pts. 19.4% 18.6% -0.8%-pts.

EBIT 1,230 1,251 +1.7% 429 433 +0.9%

EBIT margin 13.6 12.5 -1.1%-pts. 14.1 13.3 -0.8%-pts.

Net income 439 521 +82 mn 229 212 -17 mn

Capex 500 743 +243 mn 202 242 +40 mn

Capex ratio 5.5 7.4 +1.9%-pts. 6.7 7.4 +0.7%-pts.

Free cash flow -872) 192 +279 mn 238 264 +26mn

Net debt1) 5,778 5,950 +172mn 5,778 5,950 +172mn

Leverage ratio1) 3) 2.7 2.7 2.7 2.7

23 SchaefflerAG - Capital Markets Presentation

Salesin EUR mn

Sales 9M 2015 up 10.6%3 Financial Results 9M 2015

Gross profit

29.6% 28.3% 28.6% 28.4% 28.3%

Growth rate (y-o-y)

+4.0% +0.7% +8.2% +7.1% +10.6%


9M 159M 14

9,9829,024

2014

12,124

2013

11,205

2012

11,125

54%22%

14%

10%

Americas+21.2% (+9.8%)

Greater China+26.3% (+5.8%)

Europe+3.4% (+2.2%)

Asia/Pacific+12.1% (2.4%)

9M 2015 sales by regionY-o-y growth (w/o FX effects)

Sales by divisionY-o-y growth (w/o FX effects)

9M14 9M 15 D(w/o FX effects)

Automotive 6,670 7,511 12.6%(6.5%)

Industrial 2,354 2,471 5.0%(-2.2%)

Total 9,024 9,982 10.6%(4.2%)

24

EBIT margin 9M 2015 12.5%3 Financial Results 9M 2015

EBITin EUR mn

EBIT margin

13.2% 12.4% 1) 12.6% 13.6% 12.5%


1,4691,388

1,523

1,230 1,251

2012 2013 2014 9M 14 9M 15

1)


9M 14 9M 15 D

946 999 5.6%

14.2% 13.3% -0.9%-pts.

284 252 -11.3%

12.1% 10.2% -1.9%-pts.

1,230 1,251 +1.7%

13.6% 12.5% -1.1%-pts.

EBIT by divisionin EUR mn

Automotive

Industrial

Total

Margin

Margin

Margin

Key aspects

9M 15 EBIT margin down by 1.1%-points from 13.6%mainly due to:

4 Reduced gross profit margin (-1.0%-pts) in Industrial

business

4 Increase in R&D and selling expenses on group level

4 One-off effects

25

Financial Result 9M 2015 EUR 462 mn3 Financial Results 9M 2015

663

424

620597

462

2012 2013 2014 9M 14 9M 15

Reconciliation Financial Resultin EUR mn

Financial result1)

in EUR mn


1) For presentation purposes negative results are shown as positive figures

One-offeffects

refinancingQ2/Q3 2015

215

Non-cashvaluation

effects loans /bonds

-194

-53

9M2015

as reported

9M 2015excl. one-offs andvaluation effects

462

in EUR mn 9M 14 9M 15 D

Cash interest 181 172 -9

Accrued interest 60 59 -1

Other 97 -16 -113

Financial Result excl. one-offsand valuation effects 338 215 -123

Non-cash valuation effects 24 53 29

One-off effects refinancing 2352) 194 -41

Reported Financial Result 597 462 -135

2) Including non-cash valuation effects of EUR 107 mn from refinancing transaction in Q2 2014

380

127

654

439

521

2012 2013 2014 9M 14 9M 15

Net income 9M 2015 EUR 521 mn3 Financial Results 9M 2015

Net income1)

in EUR mn

1) Attributable to the shareholders of the parent company

Provision for EUantitrust fine


Reconciliation of net incomein EUR mn

13567 521

439

Δ FinancialResult

Δ EBIT

21

9M 2014 Δ Minorities 9M 2015

7

Δ Taxes

27

Key aspects

u Improved financial result leads to higher net income

u Net income increased by EUR 82 mn vs 9M 2014

u Tax rate at 32% up from 27% in the previous yearperiod mainly due to positive one-off and aperiodiceffects last year

u Targeted dividend payout ratio of 25-35% of netincome

Free cash flow 9M 2015 EUR 192 mn3 Financial Results 9M 2015

1) One-off effect from refinancing transaction (early redemption fee) in Q2 20152) Includes one-off refinancing costs (early redemption fee) of EUR 114 mn in 20143) Includes EU antitrust fine cash impact of EUR 371 mn

1,765

(273)

(743)

(173)1)

(247)

79 192

(166)

EBITDA ΔWorkingCapital

Capex Interest Tax Other Free cashflow

301473

48

(87)

192

533 398365

2012 2013 2014 9M 14 9M 15

Free cash flow (before one-off items)in EUR mn

1,133 1,027 1,385 4) 8954) 1,0855)Operatingcash flow

4) Before EU antitrust fine cash impact of EUR 371 mn and one-off refinancing costs (earlyredemption fee) of EUR 114 mn

5) Before one-off refinancing costs (early redemption fee) of EUR 173 mn in Q2 2015

9M 2015 Free cash flowin EUR mn

4)

5)

4)

1,703 (428) (500) (384)2) (197)9M 2014 (281)3) (87)


Key aspects

4 Free Cash Flow improved by EUR 279 mn comparedto prior year

4 Significant improvement of net working capitalcompared to prior year

4 Capex increased by EUR 243 mn4 Prior year Free Cash Flow was impacted by antitrust

fine of EUR 371 mn, which is reflected in 'Other'

(704) (879) (1,065) (928) (1,052)

1,495 1,536 1,713 1,812 1,813

1,626 1,6761,900 2,016 2,119

12/12 12/13 12/14 09/14 09/15

Trade payables Inventories Trade receivables

1) Excludes provisions for outstanding invoices2) Based on LTM Sales

21.7% 20.8% 21.0% 24.6% 22.0%Workingcapital as% of sales2)


Working capital improved – Capex on track

Working capitalin EUR mn

2,417 2,333

2,5482,900 2,880

1)


7.7%% ofsales 7.1% 5.5% 7.4%5.1%

618 652 649 473 514D&A

Capexin EUR mn

860

572

857

500

743

2012 2013 2014 9M 14 9M 15

6,505

5,447

5,7785,936 5,950

12/12 12/13 12/14 09/14 09/15 ProFormaPost IPO

Net financial debtin EUR mn

3.1x 2.7x 2) 2.7x 2.6x 2.7xLeverageratio 1)


1) Net financial debt w/o shareholder loans / LTM EBITDA2) Before provision for EU antitrust fine of EUR 380 mn


Change in net financial debtin EUR mn

219

-88

210 41 5,950

09/15OtherBondrefinancing2)

RepaymentTerm Loan1)

Δ CashPosition

FX effect12/14

5,778

-210

1) EUR 210 m voluntary prepayment of institutional term loans2) 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

2.3x

Financial debt development

30

InnovationQuality

ProfitabilitySales

Guidance 2015

Employees

Capex Free cash flow

Innovation~3,000 new jobs

6-8% of sales Sustainably positive

Maintain leading positionin patent applications

Sales growth 4-5%1) EBIT margin 12-13%2)

Quality policy Further improve R&D expenses 5% of sales

1) At constant currency 2) Does not include one-off items


4 Outlook and Summary

Key messages4 Outlook and Summary

We are an integrated automotive and industrial supplier with a proven track-record of above-averagegrowth and profitability

Based on our strategy concept we are well positioned to shape the 'Mobility for tomorrow'

We have a superior automotive business that consistently outperforms the market and benefits fromkey growth trends going forward

Our Industrial business shows considerable margin upside potential

We are targeting to significantly improve our Free Cash Flow generation going forward

1

2

3

4

5


Financial calendar 2015/2016

Results FY 2015March 15, 2016

BofAML Global Industrial Conference, LondonMarch 17, 2016

Unicredit KeplerCheuvreux German Corporate Conference, FrankfurtJan. 19, 2016

Analyst Day, HerzogenaurachNov. 20, 2015

Results 9M 2015

Société Générale Premium Review, ParisGoldman Sachs Global Automotive Conference, LondonDec. 2/3, 2015

Nov. 19, 2015

Deutsche Bank Global Auto Industry Conference, DetroitCommerzbank German Investment Seminar, New York

Jan. 12/13,2016

Annual General Meeting, NurembergApril 22, 2016

Results Q1 2016May 12, 2016

Capital Markets DayJuly 2016


Investor Relationsphone: + 49 9132 82 4440fax: + 49 9132 82 4444Email: [email protected]: www.schaeffler.com/ir

IR contact

Christoph Beumelburg +49 (0)9132 82 5414

Niels Fehre +49 (0)9132 82 85805

Susanne Sievers +49 (0)9132 82 4408


54%11%

Overview on current corporate and financing structureBackup

Corporate structure (November 30, 2015)

Debt instrument Nominal(mn) Interest Maturity Rating

HoldCo Loans:

Scha

effle

rHol

ding

(Hol

dCo)

HoldCo Term Loan (EUR) 5002) E+3.75% Oct-20 Not ratedHoldCo RCF (EUR 200 mn) - E+3.75% Oct-20 Not rated

HoldCo Bonds:6.875% SSNs 2018 (EUR)3) 800 6.875% Aug-18 Ba3 / B6.875% SSNs 2018 (USD)3) 1.000 6.875% Aug-18 Ba3 / B6.25% SSNs 2019 (USD)3) 475 6.25% Nov-19 Ba3 / B5.75% SSNs 2021 (EUR)3) 350 5.75% Nov-21 Ba3 / B6.75% SSNs 2022 (USD)3) 675 6.75% Nov-22 Ba3 / B

OpCo Loans:

Scha

effle

rGro

up(O

pCo)

OpCo Term Loan B (EUR) 250 E4)+3.50% May-20 Ba2 /BB-OpCo Term Loan B (USD) 440 L4)+3.50% May-20 Ba2 /BB-OpCo RCF (EUR 1,000 mn) - E+2.6875% Oct-19 Not rated

OpCo 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

Freefloat

10%75%

TopCo

HoldCo

OpCo

HoldCo

Bonds

HoldCo

Loans

36%

SchaefflerTechnologies

AG & Co. KG

100%

100%

INA-Holding SchaefflerGmbH & Co. KG

Schaeffler HoldingGmbH & Co. KG

14%

Loan notereceivables1)

2) Up to EUR 600 mn.3) Senior Secured PIK Toggle Notes.4) Floor of 0.75 %.

1) Loan note receivables of EUR 1,773m secured by share pledges over 23,250,361 Continental AGshares .

Freefloat

Financing structure (November 30, 2015)


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