Supplement No. 2 dated November 20, 2017 to the Base Prospectus dated May 4, 2017 as supplemented by Supplement No. 1 dated August 21, 2017 Supplement No. 2 pursuant to Art. 16(1) of Directive 2003/71/EC (as amended) (the Prospectus Directive) and Art. 13(1) of the Luxembourg Act relating to prospectuses for securities (loi relative aux prospectus pour valeurs mobilières) (the Luxembourg Act) dated November 20, 2017 (the Supplement No. 2) to the three base prospectuses (i) the base prospectus of Continental Aktiengesellschaft in respect of non-equity securities within the meaning of Art. 22 No. 6(4) of the Commission Regulation (EC) No. 809/2004 of April 29, 2004, as amended (Non-Equity Securities), (ii) the base prospectus of Conti-Gummi Finance B.V. in respect of Non-Equity Securities and (iii) the base prospectus of Continental Rubber of America, Corp. in respect of Non-Equity Securities, dated May 4, 2017 (together, the Debt Issuance Programme Prospectus or the Prospectus) as supplemented by Supplement No. 1 to the Prospectus dated August 21, 2017 (the Supplement No. 1). Continental Aktiengesellschaft (Hanover, Federal Republic of Germany) as Issuer and, in respect of Notes issued by Conti-Gummi Finance B.V. and Continental Rubber of America, Corp., as Guarantor Conti-Gummi Finance B.V. (Maastricht, The Netherlands) as Issuer Continental Rubber of America, Corp. (Wilmington, Delaware, United States of America) as Issuer 7,500,000,000 Debt Issuance Programme (the Programme) This Supplement No. 2 has been approved by the Commission de Surveillance du Secteur Financier (the CSSF) of the Grand Duchy of Luxembourg in its capacity as competent authority under the Luxembourg Act for the purposes of the Prospectus Directive. Each Issuer has requested the CSSF in its capacity as competent authority under the Luxembourg Act which implements the Prospectus Directive into Luxembourg law to provide the competent authorities in the Federal Republic of Germany and The Netherlands with a certificate of approval attesting that the Prospectus has been drawn up in accordance with the Luxembourg Act (Notification). Each Issuer may request the CSSF to provide competent authorities in additional Member States within the European Economic Area with a Notification. Right to withdraw In accordance with Article 13 paragraph 2 of the Luxembourg Act, investors who have already agreed to purchase or subscribe for the securities before this Supplement No. 2 is published have the right, exercisable within a time limit of two working days after the publication of this Supplement No. 2, to withdraw their acceptances provided that the new factor, mistake or inaccuracy referred to in Article 13 paragraph 1 of the Luxembourg Act arose before the final closing of the offer to the public and the delivery of the securities. This Supplement No. 2 was approved and is published on November 20, 2017, consequently investors can withdraw their acceptances until November 22, 2017. A withdrawal, if any, of an order must be communicated in writing to the Issuer at its registered office, specified in the list of NAMES AND ADDRESSES of the Prospectus on page 224. - 1 -
Copies of this Supplement No. 2, Supplement No. 1, the Prospectus and all documents which are incorporated herein and therein by reference may be inspected in physical form during normal business hours at the registered office of the Issuers and from the specified offices of the Paying Agents. This Supplement No. 2, Supplement No. 1, the Prospectus and the documents incorporated by reference herein and therein are also available for viewing at www.bourse.lu. The purpose of this Supplement No. 2 is to update several sections of the Prospectus (as supplemented by Supplement No. 1) as set forth in detail on the next pages hereof. This Supplement No. 2 is supplemental to, and should be read and shall only be distributed in connection with Supplement No. 1 and the Prospectus. Therefore, with respect to future issues under the Programme of Continental Aktiengesellschaft, Conti-Gummi Finance B.V. and Continental Rubber of America, Corp., references in the Final Terms to the Prospectus are to be read as references to the Prospectus as supplemented by Supplement No. 1 and this Supplement No. 2. Terms defined in the Prospectus have the same meaning when used in this Supplement No. 2. All references in the Prospectus to "the Prospectus", "this Prospectus", "the Debt Issuance Prospectus", "this Debt Issuance Prospectus", or any other similar expression, in particular regarding confirmations and representations as to the information contained therein, shall be deemed to also refer to this Supplement No. 2. Continental Aktiengesellschaft, Conti-Gummi Finance B.V. and Continental Rubber of America, Corp. (each an Issuer and together the Issuers) accept responsibility for the information contained in this Supplement No. 2. To the best of the knowledge of each Issuer, having taken all reasonable care to ensure that such is the case, the information contained in this Supplement No. 2 is in accordance with the facts and does not omit anything likely to affect its importance. To the extent that there is any inconsistency between (a) any statements in this Supplement No. 2 or any statement incorporated by reference into the Prospectus (as supplemented by Supplement No. 1) by this Supplement No. 2 and (b) any other statement in or incorporated in the Prospectus (as supplemented by Supplement No. 1), the statements in (a) above will prevail. The amendments to the Prospectus (as supplemented by Supplement No. 1) mentioned in this Supplement No. 2 shall only apply to an admission to trading of instruments and/or offer to the public of instruments which is ongoing at the time of or commencing after the approval of this Supplement No. 2, or where the delivery has not yet taken place. Page references in this document refer to pages in the Prospectus, unless otherwise indicated. - 2 -
I. Changes relating to the Summary and the German Translation of the Summary Change to Element B.4b in "Section B [Issuer] [Guarantor]" regarding Continental Aktiengesellschaft The second paragraph of Element B.4b "Known trends affecting the [Issuer] [Guarantor] and the industries in which it operates" in "Section B [Issuer] [Guarantor]" in the Summary regarding Continental Aktiengesellschaft on page 8 of the Prospectus (as supplemented by Supplement No. 1, page 3) shall be deleted and replaced by the following: "With respect to the development of the automotive industry in general, according to Continental AG's estimates, global light vehicle production (passenger cars, station wagons and light commercial vehicles) is expected to increase by 2% in 2017. Continental AG expects demand on Continental s key markets for replacement tires for passenger cars and light commercial vehicles - Europe and North America - to grow in 2017 by 2% in Europe and 0% in North America." Change to Element B.12 in "Section B [Issuer] [Guarantor]" regarding Continental Aktiengesellschaft Element B.12 in "Section B [Issuer] [Guarantor]" in the Summary regarding Continental Aktiengesellschaft on pages 8-10 of the Prospectus (as supplemented by Supplement No. 1, pages 3-4) shall be deleted and replaced by the following: "B.12 Selected historical key financial information (audited consolidated financial statements 2016 and unaudited condensed interim consolidated financial statements as at September 30, 2017 of Continental AG) Jan. 01 Sept. 30, Jan. 01 Dec. 31, 2017 2016 2016 2015 (unaudited) (unaudited) (audited) (audited) Sales... 32,725.6 30,025.5 40,549.5 39,232.0 Cost of sales... -24,286.6-22,018.3-29,783.0-29,056.8 Gross margin on sales... 8,439.0 8,007.2 10,766.5 10,175.2 EBITDA (1) (5)... 4,873.1 4,296.0 6,057.4 6,001.4 EBIT (2)... 3,304.9 2,886.6 4,095.8 4,115.6 Net interest result... -219.6-73.6-117.0-245.6 Earnings before tax... 3,085.3 2,813.0 3,978.8 3,870.0 Cash flow arising from operating activities... 2,569.7 2,964.8 4,938.1 4,915.6 Cash flow arising from investing activities... -2,097.7-1,780.8-3,166.8-3,472.0 Cash flow before financing activities (free cash flow) (3)... 472.0 1,184.0 1,771.3 1,443.6 Cash flow arising from financing activities... -966.8-1,322.3-1,254.7-3,097.6 Change in cash and cash equivalents... -494.8-138.3 516.6-1,654.0 Cash and cash equivalents at the end of the reporting period... 1,530.9 1,439.9 2,107.0 1,621.5 Net income... 2,267.6 2,070.6 2,882.0 2,779.6 Non-controlling interests... -43.5-53.3-79.5-52.2 Net income attributable to the shareholders of the parent... 2,224.1 2,017.3 2,802.5 2,727.4 Net indebtedness at the end of the reporting period (4) (5)... 3,297.9 3,298.4 2,797.8 3,541.9 Basic earnings per share in EUR... 11.12 10.09 14.01 13.64 Diluted earnings per share in EUR... 11.12 10.09 14.01 13.64-3 -
Sept. 30, Dec. 31, Dec. 31, 2017 2016 2015 (unaudited) (audited) (audited) Non-current assets... 21,439.8 21,321.0 19,666.6 Current assets... 15,921.5 14,853.9 13,169.1 Total assets... 37,361.3 36,174.9 32,835.7 Equity attributable to the shareholders of the parent... 15,251.7 14,270.0 12,786.3 Non-controlling interests... 446.9 464.8 427.6 Total equity... 15,698.6 14,734.8 13,213.9 Non-current liabilities... 7,001.8 7,885.9 7,521.0 Current liabilities... 14,660.9 13,554.2 12,100.8 Total equity and liabilities... 37,361.3 36,174.9 32,835.7 Number of employees at the end of the reporting period (excluding trainees)... 233,270 220,137 207,899 (1) Continental AG defines EBITDA (Earnings before interest, tax, depreciation and amortization) as the sum of (i) EBIT and (ii) depreciation of property, plant and equipment and amortization of intangible assets (excluding impairment on financial investments). Continental AG reports its EBITDA because it believes it is a helpful figure for evaluating the Continental Group s and its divisions operating performance. EBITDA is not a performance indicator recognized under International Financial Reporting Standards (IFRS). The EBITDA reported is not necessarily comparable to the performance figures published by other companies as EBITDA or the like. (2) Continental AG defines EBIT (Earnings before interest and tax) as the result of ordinary business activities. Continental AG reports its EBIT because it believes it is a helpful figure for evaluating the Continental Group s and its divisions operating performance. EBIT is not a performance indicator recognized under IFRS. The EBIT reported is not necessarily comparable to the performance figures published by other companies as EBIT or the like. (3) Continental AG defines free cash flow as the sum of cash flows arising from operating and investing activities. Continental AG reports its free cash flow because it believes it is a helpful figure for evaluating the Continental Group s and its divisions financial performance. Free cash flow is not a performance indicator recognized under IFRS. The free cash flow reported is not necessarily comparable to the performance figures published by other companies as free cash flow or the like. (4) Continental AG defines net indebtedness as the net amount of interest-bearing financial liabilities, as recognized in the balance sheet, the positive fair values of the derivative instruments, cash and cash equivalents, as well as other interest-bearing investments. Continental AG reports its net indebtedness because it believes it is a helpful figure for evaluating the Continental Group s and its divisions capital structure. Net indebtedness is not a performance indicator recognized under IFRS. The net indebtedness reported is not necessarily comparable to the performance figures published by other companies as net indebtedness or the like. (5) Unaudited. Material adverse change in the prospects of the [Issuer] [Guarantor] Significant change in the financial and trading position There has been no material adverse change in the prospects of Continental AG since December 31, 2016. Not applicable. There has been no significant change in the financial or trading position of Continental AG since September 30, 2017." - 4 -
Change to Punkt B.4b in "Abschnitt B [Emittentin] [Garantin]" regarding Continental Aktiengesellschaft The second paragraph of Punkt B.4b "Bereits bekannte Trends, die sich auf die [Emittentin] [Garantin] und die Branchen, in denen sie tätig ist, auswirken" in "Abschnitt B [Emittentin] [Garantin]" in the German Translation of the Summary regarding Continental Aktiengesellschaft on page 27 of the Prospectus (as supplemented by Supplement No. 1, page 7) shall be deleted and replaced by the following: "Was die Entwicklung der Automobilindustrie im Allgemeinen betrifft, wird die weltweite Fahrzeugproduktion (Pkw, Kombifahrzeuge und leichte Nutzfahrzeuge) nach Einschätzung von Continental AG um 2 % im Jahr 2017 steigen. Für die für Continental bedeutenden Pkw-Ersatzreifenmärkte Europa und Nordamerika rechnet Continental AG im Jahr 2017 mit einem Nachfrageplus von 2 % in Europa und 0% in Nordamerika." Change to Punkt B.12 in "Abschnitt B [Emittentin] [Garantin]" regarding Continental Aktiengesellschaft Punkt B.12 in "Abschnitt B [Emittentin] [Garantin]" in the German Translation of the Summary regarding Continental Aktiengesellschaft on pages 28-29 of the Prospectus (as supplemented by Supplement No. 1, pages 7-8) shall be deleted and replaced by the following: "B.12 Ausgewählte wesentliche historische Finanzinformationen (geprüfter Konzernabschluss 2016 und ungeprüfter verkürzter Konzern-Zwischenabschluss zum 30. September 2017 der Continental AG) 01. Jan. 30. Sept. 01. Jan. 31. Dez. 2017 2016 2016 2015 (ungeprüft) (ungeprüft) (geprüft) (geprüft) (in EUR Mio.) (sofern nicht anders angegeben) Umsatzerlöse... 32.725,6 30.025,5 40.549,5 39.232,0 Herstellungskosten der zur Erzielung der Umsatzerlöse erbrachten Leistungen... -24.286,6-22.018,3-29.783,0-29.056,8 Bruttoergebnis vom Umsatz... 8.439,0 8.007,2 10.766,5 10.175,2 EBITDA (1) (5)... 4.873,1 4.296,0 6.057,4 6.001,4 EBIT (2)... 3.304,9 2.886,6 4.095,8 4.115,6 Zinsergebnis... -219,6-73,6-117,0-245,6 Ergebnis vor Ertragsteuern... 3.085,3 2.813,0 3.978,8 3.870,0 Mittelzufluss/-abfluss aus laufender Geschäftstätigkeit... 2.569,7 2.964,8 4.938,1 4.915,6 Mittelabfluss aus Investitionstätigkeit... -2.097,7-1.780,8-3.166,8-3.472,0 Cashflow vor Finanzierungstätigkeit (Free Cashflow) (3)... 472,0 1.184,0 1.771,3 1.443,6 Mittelabfluss/-zufluss aus Finanzierungstätigkeit... -966,8-1.322,3-1.254,7-3.097,6 Veränderung der flüssigen Mittel... -494,8-138,3 516,6-1.654,0 Flüssige Mittel am Ende der Berichtsperiode... 1.530,9 1.439,9 2.107,0 1.621,5 Konzernergebnis... 2.267,6 2.070,6 2.882,0 2.779,6 Auf Anteile in Fremdbesitz entfallender Gewinn... -43,5-53,3-79,5-52,2 Konzernergebnis den Anteilseignern zuzurechnen... 2.224,1 2.017,3 2.802,5 2.727,4 Netto-Finanzschulden am Ende der Berichtsperiode (4) (5)... 3.297,9 3.298,4 2.797,8 3.541,9 Ergebnis pro Aktie in EUR, unverwässert... 11,12 10,09 14,01 13,64 Ergebnis pro Aktie in EUR, verwässert... 11,12 10,09 14,01 13,64-5 -
30. Sept. 31. Dez. 31. Dez. 2017 2016 2015 (ungeprüft) (geprüft) (geprüft) (in EUR Mio.) (sofern nicht anders angegeben) Langfristige Vermögenswerte... 21.439,8 21.321,0 19.666,6 Kurzfristige Vermögenswerte... 15.921,5 14.853,9 13.169,1 Bilanzsumme (Aktiva)... 37.361,3 36.174,9 32.835,7 Den Anteilseignern zuzurechnendes Eigenkapital... 15.251,7 14.270,0 12.786,3 Anteile in Fremdbesitz... 446,9 464,8 427,6 Eigenkapital... 15.698,6 14.734,8 13.213,9 Langfristige Rückstellungen und Verbindlichkeiten... 7.001,8 7.885,9 7.521,0 Kurzfristige Rückstellungen und Verbindlichkeiten... 14.660,9 13.554,2 12.100,8 Bilanzsumme (Passiva)... 37.361,3 36.174,9 32.835,7 Anzahl Mitarbeiter am Ende der Berichtsperiode (ohne Auszubildende)... 233.270 220.137 207.899 (1) Die Continental AG definiert EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) als die Summe aus (i) EBIT und (ii) Abschreibungen auf Sachanlagen und immaterielle Vermögenswerte (ohne Abschreibungen auf Finanzanlagen). Die Continental AG weist ihr EBITDA aus, da sie der Ansicht ist, dass es sich um eine hilfreiche Kennzahl zur Beurteilung der operativen Ertragskraft des Continental-Konzerns und seiner Divisionen handelt. EBITDA ist keine nach den International Financial Reporting Standards (IFRS) anerkannte Erfolgskennzahl. Das ausgewiesene EBITDA ist nicht unbedingt mit den Erfolgskennzahlen, die von anderen Unternehmen als EBITDA oder ähnliches ausgewiesen werden, vergleichbar. (2) Die Continental AG definiert EBIT (Earnings Before Interest and Tax) als Ergebnis vor Zinsen und Ertragsteuern. Die Continental AG versteht EBIT als Ergebnis der gewöhnlichen Geschäftstätigkeit und weist ihr EBIT aus, da sie der Ansicht ist, dass es sich um eine hilfreiche Kennzahl zur Beurteilung der operativen Ertragskraft des Continental-Konzerns und seiner Divisionen handelt. EBIT ist keine nach den IFRS anerkannte Erfolgskennzahl. Das ausgewiesene EBIT ist nicht unbedingt mit den Erfolgskennzahlen, die von anderen Unternehmen als EBIT oder ähnliches ausgewiesen werden, vergleichbar. (3) Die Continental AG definiert Free Cashflow bzw. Cashflow vor Finanzierungstätigkeit als Summe aus Mittelzufluss bzw. Mittelabfluss aus laufender Geschäftstätigkeit und Mittelabfluss aus Investitionstätigkeit. Die Continental AG weist ihren Free Cashflow aus, da sie der Ansicht ist, dass es sich um eine hilfreiche Kennzahl zur Beurteilung der finanziellen Leistungsfähigkeit des Continental-Konzerns und seiner Divisionen handelt. Free Cashflow ist keine nach den IFRS anerkannte Erfolgskennzahl. Der ausgewiesene Free Cashflow ist nicht unbedingt mit den Erfolgskennzahlen, die von anderen Unternehmen als Free Cashflow oder ähnliches ausgewiesen werden, vergleichbar. (4) Die Continental AG definiert Netto-Finanzschulden als Saldo der zinspflichtigen bilanzierten finanziellen Verbindlichkeiten, der beizulegenden Zeitwerte der derivativen Finanzinstrumente, der flüssigen Mittel sowie der sonstigen verzinslichen Anlagen. Die Continental AG weist ihre Netto- Finanzschulden aus, da sie der Ansicht ist, dass es sich um eine hilfreiche Kennzahl zur Beurteilung der Kapitalstruktur des Continental-Konzerns und seiner Divisionen handelt. Netto-Finanzschulden sind keine nach den IFRS anerkannte Erfolgskennzahl. Die ausgewiesenen Netto-Finanzschulden sind nicht unbedingt mit den Erfolgskennzahlen, die von anderen Unternehmen als Netto-Finanzschulden oder ähnliches ausgewiesen werden, vergleichbar. (5) Ungeprüft. - 6 -
Wesentliche Verschlechterung der Aussichten der [Emittentin] [Garantin] Wesentliche Veränderungen der Finanzlage oder Handelsposition Seit dem 31. Dezember 2016 ist keine wesentliche Verschlechterung der Aussichten der Continental AG eingetreten. Nicht zutreffend. Seit dem 30. September 2017 ist keine wesentliche Veränderung der Finanzlage oder Handelsposition der Continental AG eingetreten." II. Changes relating to the section "General Information on the Issuers" Change to the section "General Information on the Issuers Continental AG Issuer and Guarantor Historical Financial Information" In the section headed "General Information on the Issuers Continental AG Issuer and Guarantor Historical Financial Information" on pages 72-74 of the Prospectus (as supplemented by Supplement No. 1, pages 12-14) the third paragraph, including the table following, shall be deleted and replaced by the following: "The unaudited and unreviewed condensed interim consolidated financial statements of Continental AG for the ninemonth period ending September 30, 2017, which were prepared on the basis of International Financial Reporting Standards (IFRS) as adopted by the European Union, together contained in Continental AG s Financial Report (Finanzbericht) as at September 30, 2017 on pages 27 to 39, are incorporated by reference into this Prospectus. The following selected financial information has been extracted without material adjustment from the consolidated financial statements in Continental AG s Annual Report (Geschäftsbericht) 2016 (audited) and Continental AG s Financial Report (Finanzbericht) as at September 30, 2017 (unaudited), unless otherwise indicated: Selected Key Financial Data of the Continental Group Jan. 01 Sept. 30, Jan. 01 Dec. 31, 2017 2016 2016 2015 (unaudited) (unaudited) (audited) (audited) Sales... 32,725.6 30,025.5 40,549.5 39,232.0 Cost of sales... -24,286.6-22,018.3-29,783.0-29,056.8 Gross margin on sales... 8,439.0 8,007.2 10,766.5 10,175.2 EBITDA (1) (5)... 4,873.1 4,296.0 6,057.4 6,001.4 EBIT (2)... 3,304.9 2,886.6 4,095.8 4,115.6 Net interest result... -219.6-73.6-117.0-245.6 Earnings before tax... 3,085.3 2,813.0 3,978.8 3,870.0 Cash flow arising from operating activities... 2,569.7 2,964.8 4,938.1 4,915.6 Cash flow arising from investing activities... -2,097.7-1,780.8-3,166.8-3,472.0 Cash flow before financing activities (free cash flow) (3)... 472.0 1,184.0 1,771.3 1,443.6 Cash flow arising from financing activities... -966.8-1,322.3-1,254.7-3,097.6 Change in cash and cash equivalents... -494.8-138.3 516.6-1,654.0 Cash and cash equivalents at the end of the reporting period... 1,530.9 1,439.9 2,107.0 1,621.5 Net income... 2,267.6 2,070.6 2,882.0 2,779.6 Non-controlling interests... -43.5-53.3-79.5-52.2 Net income attributable to the shareholders of the parent... 2,224.1 2,017.3 2,802.5 2,727.4 Net indebtedness at the end of the reporting period (4) (5)... 3,297.9 3,298.4 2,797.8 3,541.9 Basic earnings per share in EUR... 11.12 10.09 14.01 13.64 Diluted earnings per share in EUR... 11.12 10.09 14.01 13.64-7 -
Sept. 30, Dec. 31, Dec. 31, 2017 2016 2015 (unaudited) (audited) (audited) Non-current assets... 21,439.8 21,321.0 19,666.6 Current assets... 15,921.5 14,853.9 13,169.1 Total assets... 37,361.3 36,174.9 32,835.7 Equity attributable to the shareholders of the parent... 15,251.7 14,270.0 12,786.3 Non-controlling interests... 446.9 464.8 427.6 Total equity... 15,698.6 14,734.8 13,213.9 Non-current liabilities... 7,001.8 7,885.9 7,521.0 Current liabilities... 14,660.9 13,554.2 12,100.8 Total equity and liabilities... 37,361.3 36,174.9 32,835.7 Number of employees at the end of the reporting period (excluding trainees)... 233,270 220,137 207,899 (1) Continental AG defines EBITDA (Earnings before interest, tax, depreciation and amortization) as the sum of (i) EBIT and (ii) depreciation of property, plant and equipment and amortization of intangible assets (excluding impairment on financial investments). Continental AG reports its EBITDA because it believes it is a helpful figure for evaluating the Continental Group's and its divisions' operating performance. EBITDA is not a performance indicator recognized under International Financial Reporting Standards (IFRS). The EBITDA reported is not necessarily comparable to the performance figures published by other companies as EBITDA or the like. Jan. 01 Sept. 30, Jan. 01 Dec. 31, 2017 2016 2016 2015 (unaudited) (unaudited) (audited) (audited) EBITDA (a) 4,873.1 4,296.0 6,057.4 6,001.4 Depreciation and amortization (b) -1,568.2-1,409.4-1,961.6-1,885.8 EBIT (Earnings before interest and tax) 3,304.9 2,886.6 4,095.8 4,115.6 (a) Unaudited. (b) Excluding impairment on financial investments. (2) Continental AG defines EBIT (Earnings before interest and tax) as the result of ordinary business activities. Continental AG reports its EBIT because it believes it is a helpful figure for evaluating the Continental Group s and its divisions operating performance. EBIT is not a performance indicator recognized under IFRS. The EBIT reported is not necessarily comparable to the performance figures published by other companies as EBIT or the like. (3) Continental AG defines free cash flow as the sum of cash flows arising from operating and investing activities. Continental AG reports its free cash flow because it believes it is a helpful figure for evaluating the Continental Group s and its divisions financial performance. Free cash flow is not a performance indicator recognized under IFRS. The free cash flow reported is not necessarily comparable to the performance figures published by other companies as free cash flow or the like. - 8 -
(4) Continental AG defines net indebtedness as the net amount of interest-bearing financial liabilities, as recognized in the balance sheet, the positive fair values of the derivative instruments, cash and cash equivalents, as well as other interest-bearing investments. Continental AG reports its net indebtedness because it believes it is a helpful figure for evaluating the Continental Group s and its divisions capital structure. Net indebtedness is not a performance indicator recognized under IFRS. The net indebtedness reported is not necessarily comparable to the performance figures published by other companies as net indebtedness or the like. Sept. 30, 2017 Sept. 30, 2016 Dec. 31, 2016 Dec. 31, 2015 (unaudited) (unaudited) (audited) (audited) Long-term indebtedness 2,010.4 2,195.1 2,803.7 3,175.0 Short-term indebtedness 2,950.5 2,605.6 2,148.6 2,069.8 Long-term derivative instruments and interest-bearing investments -84.4-38.0-19.7-17.1 Short-term derivative instruments and interest-bearing investments -47.7-24.4-27.8-64.3 Cash and cash equivalents -1,530.9-1,439.9-2,107.0-1,621.5 Net indebtedness (a) 3,297.9 3,298.4 2,797.8 3,541.9 (a) Unaudited. (5) Unaudited." Change to the section "General Information on the Issuers Continental AG Issuer and Guarantor Significant Changes in the Financial or Trading Position" The section headed "General Information on the Issuers Continental AG Issuer and Guarantor Significant Changes in the Financial or Trading Position" on page 75 of the Prospectus (as supplemented by Supplement No. 1, page 14) shall be deleted and replaced by the following: "There has been no significant change in the financial or trading position of Continental AG since September 30, 2017." III. Changes relating to the section "Business of the Continental Group" Change to the section "Business of the Continental Group Investments" In the section headed "Business of the Continental Group Investments" on page 87 of the Prospectus the following sentence shall be added to the end of the first paragraph: "On November 3, 2017, Continental acquired Argus Cyber Security Ltd., Tel Aviv, Israel, with an aim to offer multilayered end-to-end automotive cybersecurity solutions and services as well as secure over the air software updates for customers around the globe." Change to the section "Business of the Continental Group Outlook" The section headed "Business of the Continental Group Outlook" on page 93 of the Prospectus (as supplemented by Supplement No. 1, page 17) shall be deleted and replaced by the following: "Outlook According to Continental AG's estimates, global light vehicle production (passenger cars, station wagons and light commercial vehicles) is expected to increase by 2% in 2017. Continental AG expects demand on Continental s key markets for replacement tires for passenger cars and light commercial vehicles - Europe and North America - to grow in 2017 by 2% in Europe and 0% in North America. - 9 -
Based on these market assumptions and under the assumption of constant exchange rates year-on-year, Continental AG anticipates an increase in consolidated sales in 2017 to more than EUR 44 billion. At current exchange rates, Continental AG expects consolidated sales of around EUR 44 billion for 2017." IV. Changes relating to the section "General Information" Change to the section "General Information Documents on Display" The following content shall be added to the section headed "General Information Documents on Display" on pages 220 to 221 of the Prospectus (as supplemented by Supplement No. 1, page 17) after numbered item (i), and the numbering of the following numbered items shall be amended accordingly: "(ii) a copy of the unaudited condensed interim consolidated financial statements of Continental AG as at and for the nine-month period ending September 30, 2017;" V. Changes relating to the section "Documents Incorporated by Reference" Change to the section "Documents Incorporated by Reference Continental AG" The following content shall be added to the section headed "Documents Incorporated by Reference Continental AG" on page 222 of the Prospectus (as supplemented by Supplement No. 1, page 18) at the beginning of this section: "Unaudited condensed interim consolidated financial statements of Continental AG as at and for the nine-month period ending September 30, 2017 (English language version) Consolidated Statement of Income page 27 Consolidated Statement of Comprehensive Income page 28 Consolidated Statement of Financial Position page 29 Consolidated Statement of Cash Flows page 30 Consolidated Statement of Changes in Equity page 31 Explanatory Notes to the Consolidated Financial Statements pages 32-39" Save as disclosed in this Supplement No. 2, there has been no other significant new factor, material mistake or inaccuracy relating to the information included in the Prospectus as supplemented by Supplement No. 1, which is capable of affecting the assessment of the Notes issued under the Programme since the publication of the Prospectus and Supplement No. 1. - 10 -