Schaeffler reduces debt by approx. €1.3 billion

Herzogenaurach, (PresseBox) - .
- Placement successfully completed; proceeds approx. €950 million
- Additional prepayment of €325 million of debt from excess cash flow
- Further crucial step to optimize capital structure
- Continental remains long term strategic shareholding


Schaeffler, the global automotive and industrial supplier, has successfully completed the placement of 3.9% of Continental AG shares. Proceeds amounted to approx. €950 million. Combined with a prepayment of €325 million from excess free cash flow, the company thereby reduces its indebtedness by approx. €1.275 billion. The receiving banks also include an affiliate of the bank placing the shares.

Schaeffler sold 7.8 million shares in Continental AG at a price of €122.50 per share to a broad range of international investors in an Accelerated Bookbuilt Offering. Together with the debt prepayment from excess cash flow, Schaeffler reduces its gross debt from currently approx. €10.3 billion to approx. €9.0 billion. In this context, Schaeffler AG reduces its gross debt from currently approx. €6.7 billion to approx. €5.8 billion and Schaeffler Holding decreases its gross debt from currently approx. €3.6 billion to approx. €3.2 billion.

Following the placement, Schaeffler's participation in Continental AG amounts to 46.0%, whereby Schaeffler AG holds 34.2% and Schaeffler Holding holds 11.8% of the outstanding share capital. Schaeffler remains the largest shareholder in Continental AG and thus confirms its long term strategic participation in the company.

Maria-Elisabeth Schaeffler and Georg F. W. Schaeffler, shareholders of Schaeffler Group, said, "The further reduction of debt is an important step for the continuous successful development of our company. We will maintain our shareholding in Continental as it is of long term and strategic importance to us."

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Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The securities of Continental AG may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the 'Securities Act'). The securities of Continental AG have not been, and will not be, registered under the Securities Act.

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In member states of the European Economic Area ('EEA') which have implemented the Prospectus Directive (each, a 'Relevant Member State'), this announcement and any offer if made subsequently is directed exclusively at persons who are 'qualified investors' within the meaning of the Prospectus Directive ('Qualified Investors'). For these purposes, the expression 'Prospectus Directive' means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in a Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression '2010 PD Amending Directive' means Directive 2010/73/EU.

No action has been taken that would permit an offering of the securities or possession or distribution of this announcement in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

Forward-looking statements and projections

Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.

Schaeffler AG

Schaeffler with its product brands INA, LuK and FAG is a leading provider of rolling bearing and plain bearing solutions and of linear and direct drive technology, as well as a renowned supplier to the automotive industry of high-precision products and systems for engines, transmissions, and chassis applications. The group of companies with operations around the world generated sales of approximately €11.1 billion in 2012. With more than 76,000 employees worldwide, Schaeffler is one of the largest German and European industrial companies in family ownership. With 180 locations in over 50 countries, Schaeffler has a worldwide network of manufacturing locations, research and development facilities, distribution companies, engineering offices, and training centers.

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