#1Schaeffler AG Baader Investment Conference September 21, 2022 PUBLIC SCHAEFFLER We pioneer motion#2Disclaimer SCHAEFFLER 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 and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, and Schaeffler Group undertakes 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 AG management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially 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 market conditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions 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 with all 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 representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of the information 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 howsoever arising, 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 which are subject to change. Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2#3Agenda 1 2 Module 1 - Overview Schaeffler Group Module 2 - Our Divisions 3 Module 3 – Q2 2022 Financials - 4 Backup SCHAEFFLER Sep 21, 2022 Schaeffler AG - Baader Investment Conference 3 PUBLIC#41 Overview Schaeffler Group Schaeffler Group - A strong starting point Strong customer base with approx. 11,800 customers Approximately EUR 13.9 bn Sales in 20211 Approximately 1,800 patents filed in 2021 Approximately 1.1 mn tons of processed steel p.a. 8.8% EBIT margin in 20211 1 Before special items, restated | 2 As at December 31, 2021 Sep 21, 2022 Schaeffler AG - Baader Investment Conference SCHAEFFLER Around 200 locations in more than 50 countries Around 83,000 employees worldwide² PUBLIC Far more than 10,000 different products SCHAEFFLER 75 plants 20R R&D centers 4#5SCHAEFFLER 1 Overview Schaeffler Group Schaeffler Group at a glance - We are an Automotive and Industrial supplier 3 Divisions In % of FY 2021 Schaeffler Group 4 Regions In % of FY 2021 Industrial Automotive Aftermarket 13% Sep 21, 2022 26% EUR 13.9 bn Leading positions in technology and innovation • 10 customer sectors • Market leading offering from components and systems to services • 75 plants and 20 R&D centers Automotive Technologies 61% • ~83,000 employees in more than 50 countries Asia Pacific 14% Europe 42% Greater EUR 13.9 bn China 24% Americas 20% Well-diversified Automotive and Industrial supplier with global reach and synergistic businesses Schaeffler AG - Baader Investment Conference 5#61 Overview Schaeffler Group Our company strategy Roadmap 2025 - We pioneer motion SCHAEFFLER We pioneer motion Our Roadmap 2025 Tomorrow Transform Focus Execute Today Where we play How we win How we create value Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 6#71 Overview Schaeffler Group Roadmap 2025 - Building on our strong foundations and innovating as a diversified Automotive and Industrial Group Automotive Technologies Automotive Aftermarket Mature New We HARVEST with our enabler- Technologies We BUILD Competencies in Power Electronics & Hydrogen We EXIT/DIVEST expiring businesses & consolidate our footprint We GROW in Electrified Powertrains Platform ■ One-stop-shop business ■ Consolidated distribution SCHAEFFLER Industrial Driving innovation with systems and services Robotics solutions Wireless condition monitoring Hydrogen solutions Advanced repair solutions & services Wheel Plug & Play solutions ■ Also available for hybrids ☐ ② bearings for Independent of drive train passenger cars ■ High-performance parts Pushing growth in our core business Large-size wind Rail bearings bearings Agricultural technologies We drive the transition to innovative propulsion and chassis technologies, to conquer leadership positions in New Business We capture growth opportunities in new markets and maintain a high margin level We further build on our profitability track record, while entering in promising new technologies Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 7#8Growth 1 Overview Schaeffler Group Capital Allocation Framework - Driving an efficient and impactful use of resources Portfolio Management Capital Allocation 2 3 Build Portfolio Capex categories Growth¹ Rationa- lization Main- tenance Safety and regulatory Total strategies Exit/Divest Grow A Build Harvest B Grow 4 Investment Categories ROCE ✓✓ ✓ C Harvest ✓✓ ✓ D Exit/Divest Total 4 Portfolio Strategies ✓ Total Capex SCHAEFFLER Key aspects • Reinvestment Rate¹ at Group level is the dominant logic Reinvestment Rate for "Build" and "Grow" significantly >1 to fuel growth • "Harvest" and "Exit" only receive capital needed to sustain cash generation Combining Portfolio Management with Capital Allocation drives a consistent Capital Deployment Earning the right to grow is the credo of our Capital Allocation process 1 Reinvestment Rate defined as Capex divided by D&A Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 8#91 Overview Schaeffler Group We focus on compelling M&A - Further complementing and strengthening our business portfolio M&A radar Hydrogen Power electronics Lifetime Solutions hydron Chassis Mechatronics & Electronics manufacturing ELMOTEC STATOMAT 5 SCHAEFFLER PARAVAN XTRONIC Compact Dynamics BEGA AMO 1978 Mechatronics and systems melior motion Passion for precision Key aspects SCHAEFFLER Clearly defined M&A Strategy with 7 search fields, focus on small and mid-sized bolt-on acquisitions • Market likely to present increased number of opportunities within the next 24 months. • . Acquisition opportunities are proactively screened in all 3 Divisions with focus on technology Disciplined execution process with clear guidelines Sep 21, 2022 Automotive Aftermarket Automotive EWELLIX MAKERS IN MOTION Rotative and linear components Industrial Schaeffler well positioned to capitalize on attractive external growth opportunities Schaeffler AG - Baader Investment Conference PUBLIC 9#101 Overview Schaeffler Group We focus on our core competencies - Further leveraging our best-in-class manufacturing technologies SCHAEFFLER Our manufacturing technologies Large forging Cold forming Heat treatment Machining Grinding Injection Coating Sep 21, 2022 Winding Assembly Schaeffler AG - Baader Investment Conference + PUBLIC Our key strengths Innovation Combining 4 USPS to a unique strength Comprehensive System Understanding Superior Quality Manufacturing excellence 10#111 Overview Schaeffler Group We leverage our synergistic potential - Benefitting from scope and scale Scope of interdependencies Technology transfer Economies of scale SCHAEFFLER • Same production technologies . ⚫ Equal materials and components • Comprehensive Intellectual Property and Research & Development • Dedicated Innovation Clusters • Electrification and mechatronic know- how System understanding and market expertise ⚫ Joint procurement and supply chain management • Shared services and functions Complementary regional presence and global footprint Automotive businesses We pioneer motion Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC Industrial business 11#121 Overview Schaeffler Group SCHAEFFLER We see hydrogen as a unique growth chance - Schaeffler manufacturing and industrialization excellence is key Fuel cell – Usage of hydrogen - Bipolar plate Sep 21, 2022 Fuel cell systems Market potential ~240,000 Fuel Cell Trucks and Buses in 2030 expected Electrolysis - Production of hydrogen + Bipolar plate + Gas diffusion layer Market potential Siemens AG Electrolyzers ~150 GW Globally installed power of Electrolysis in 2030 expected Schaeffler as a key partner for best-in-class components and systems both for fuel cells and electrolyzers Schaeffler AG - Baader Investment Conference PUBLIC 12#131 Overview Schaeffler Group Sustainability-Eight non-financial targets underline clear commitment to sustainability SCHAEFFLER Climate Neutral Supply Chain Climate Neutral Supply Chain until 2040 Climate Neutral Production at all Schaeffler production locations until 2030 Renewable Energy 100% purchased power from renewable sources until 2024 Energy Efficiency 100 GWh cumulated annual efficiency gains until 2024 8 ESG Targets Fresh water Supply 20% reduction of fresh water supply until 2030 Sustainable Suppliers 90% of the purchasing volume of production materials will be sourced from suppliers with self-assessments on sustainability by 2022 Women in Leadership 20% women in top-management positions by 2025 Employee Safety 10% average annual reduction in the accident rate (LTIR) by 2024 Sustainability targets were integrated into the variable remuneration of upper management Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 13#141 Overview Schaeffler Group Path to Climate Neutrality - Ambitious Scope targets defined Long-Term Sustainability Targets 2019 2025 2030 2035 2040 Climate Neutral Base Year Production Scope 3 upstream -25% Scope 1+ 2 -75% -90%* Scope 3 downstream * Residual emissions are to be compensated Sep 21, 2022 Schaeffler AG - Baader Investment Conference Not included SCHAEFFLER Climate Neutral Company -90%* Key aspects • Decarbonization as top priority • Emissions occurring in the supply chain (Scope 3 upstream): - Climate neutral from 2040 Emission reduction of 25% until 2030 - - From 2025, Schaeffler will source 100,000 tons of green steel on an annual basis from Swedish start-up H2greensteel Production facilities (Scope 1&2): Climate neutral from 2030 Emission reduction of 75% until 2025 Clear strategy with specific measures being defined and implemented across the company 14#15Agenda 1 Module 1 - Overview Schaeffler Group 2 Module 2 - Our Divisions 3 Module 3 Q2 2022 Financials - 4 Backup SCHAEFFLER Sep 21, 2022 Schaeffler AG - Baader Investment Conference 15 PUBLIC#162 Our Divisions - Automotive Technologies Automotive Technologies - Driving the transition to innovative propulsion and chassis technologies SCHAEFFLER Engine & Transmission E-Mobility Europe Greater China 56%¹ of sales in 2021 12% of sales in 2021 37% of sales in 2021 26% of sales in 2021 7F A MAGNA PSA DAIMLER GROUPE Bearings Chassis Systems Valeo Ford HBOSCH GM RENAULT NISSAN MITSUBISHI FCA T FIAT CHRYSLER AUTOMOBILES TESLA Americas Revenue² 8.4 7.8 COL TOYOTA mazda HONDA 2020 2021 LAND- TATA JAGUAR ROVER Mando HYUNDAI VOLVO SAIC 上汽集团 SAIC MOTOR A CHANGAN FAW CHERY Asia/Pacific 29% of sales in 2021 3% of sales in 2021 22% of sales in 2021 15% of sales in 2021 1 Indicative sales split FY 2021 according to new business division structure Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2 In EUR bn EBIT margin bsi 6.4% 3.4% 2020 2021 16#172 Our Divisions - Automotive Technologies Portfolio Management Automotive Technologies - Operating Model sharpened in 2021 Mature Business New Business Cam phaser Variable Valve train Engine & Transmission Powertrain- specific • Dual mass fly wheel Torque Converters • Dampers • Clutches EUR 4,688 mn¹ +6.0%2 56% E-Mobility • • SCHAEFFLER E-Motors Gearboxes/Torque Transfer Solutions E-axles/Inverters EUR 1,038 mn¹ +19.2%2 • Hybrid Systems • Thermal Management Modules Fuel Cells Sales FY 20211 12% EUR 8,436 mn 3% Chassis Systems Active roll stabilizer Actuators Powertrain Bearings Bearings E-Mobility Bearings 29% Powertrain- agnostic Passenger Car Wheel Bearings EUR 2,422 mn¹ +6.0%² EUR 288 mn¹ +16.0%² • Truck Wheel Bearings • Rear wheel steering Steer-by-wire Further differentiating internal resource allocation and steering & further enhancing customer orientation 1 Indicative sales split FY 2021 according to new business division structure | 2 Indicative FX-adjusted sales growth FY 2021 Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 17#182 Our Divisions - Automotive Technologies Portfolio Management Automotive Technologies - Electrification is further accelerating Vision Powertrain - OLD Global Light Vehicle Production 88% 56% 32% 30% 40% 30% 8% 12% 15% SCHAEFFLER Climate targets towards zero emission in major markets Vision Powertrain - NEW Global Light Vehicle Production 35% HEV as transition technology will reach tipping point in 2030 88% 50% 15% 20% 35% 40% 30% 50% 40% 50% OEMs raise EV targets and accelerate electrification 8% 20% 2020 2025 e 2030 e 2035 e ICE HEV XEV Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2020 2025 e 2030 e 2035 e ICE HEV XEV 18#192 Our Divisions - Automotive Technologies - We actively manage our Product Portfolio – Harvesting the Mature, Growing the New Business Vision Powertrain - NEW Global Light Vehicle Production Mature Business SCHAEFFLER New Business Products for ICE and HEV Powertrain agnostic¹ Powertrain agnostic¹ products products Products for Electrified Powertrains 88% 50% 30% 15% 20% ICE 35% 40% HEV 50% 40% XEV Ball Screw Drive for Steering 8% 20% Example 2020 2025 e 2030 e 2035 e ICE HEV XEV Sep 21, 2022 Schaeffler AG - Baader Investment Conference 1 Independent from powertrain type PUBLIC Rear Wheel Steering 4in1 e-Axle Decreasing potential Increasing potential Strongly increasing potential 19#202 Our Divisions - Automotive Technologies SCHAEFFLER Eco-system- Optimizing our leading technological platform, leveraging our strong industrialization capabilities Mature Business We HARVEST with our Enabler-Technologies New Business We BUILD Competencies in Power Electronics & Hydrogen How we harvest Mature Business • We right-size investments and resource allocation in our Mature business by consequently reducing investments in ICE technologies (Reinvestment Rate <1) • We leverage our synergies in Mature even more, by combining the Engine and Transmission business • We aim to become the market leader in the powertrain agnostic Automotive Bearings market • We EXIT/DIVEST expiring businesses like chain drive systems and further consolidate our European footprint We EXIT/DIVEST expiring businesses & consolidate our footprint We GROW in Electrified Powertrains Sep 21, 2022 Our Mature business provides the foundation and industrialization scale and funds our New business Schaeffler AG - Baader Investment Conference PUBLIC 20 20#212 Our Divisions - Automotive Technologies Eco-system - Creating a leading technological platform with strong industrialization capabilities SCHAEFFLER Mature Business We HARVEST with our Enabler-Technologies New Business We BUILD Competencies in Power Electronics & Hydrogen Growing our New Business • We continuously leverage our Automotive + Industrial supplier eco- system - Our New Business thrives on the strong foundations of the Mature • We harness synergies between Automotive Technologies, Automotive Aftermarket and Industrial, even more in New Business fields like E-Motors or Hydrogen • We complement our portfolio organically but also inorganically by acquisitions, JVs or cooperations • We remain open to new collaborations in our future growth fields E-Mobility, Fuel Cells and Chassis Mechatronics We EXIT/DIVEST expiring businesses & consolidate our footprint We GROW in Electrified Powertrains Compact SCHAEFFE INNOPLATE Dynamics SCHAEFFLER PARAVAN ELMOTEC STATOMAT A Schaeffler Symbio Hydrogen Company XTRONIC Strong manufacturing and technological platform works like an eco-system, integrating collaborations in mobileye An Intel Company REFIRE Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 21#222 Our Divisions - Automotive Technologies Automotive Technologies - Unlimited innovation potential with our E-Mobility USP 4in1 E-Motors Transmission Xin1 e-Axle 2in1 Systems Thermal Management 3in1 PEU Sep 21, 2022 Schaeffler AG - Baader Investment Conference SCHAEFFLER Thermal E-Motor Transmission Power Electronics management 2in1 3in1 4in1 22#232 Our Divisions - Automotive Technologies How we fund our own growth and create value Mature Business Products for ICE and HEV Powertrain agnostic¹ Order intake Profitability R&D Capex/ products Priority Margin < 1 Reinvestment rate Footprint Overhead³ • • Order Intake² FY 2019 - 2021 36% HEV 35.4 bn EUR ICE 45% XEV 19% Order intake Funding our New Business Capex allocation and R&D expenses shifted to New Business Qualification Program 'Fit4Mechatronics' 1 Independent from powertrain type | 2 Powertrain split of Order Intake without Heavy Duty | 3 Selling & Admin expenses Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC Profitability R&D SCHAEFFLER New Business Powertrain agnostic¹ products Products for Electrified Powertrains Priority Growth Capex/ > 1 Reinvestment rate Footprint Overhead³ EUR 2-3 bn 23#242 Our Divisions - Automotive Aftermarket Automotive Aftermarket - Leading supplier of Aftermarket components and systems Original Equipment Services (OES) 15% of sales Others 7% of sales Europe Greater China 69% of sales in 2021 5% of sales in 2021 Independent Aftermarket (IAM) / 77% of sales Cars & Light Commercial Vehicles Trucks, Buses & Off-road Vehicles Americas Asia/Pacific 94% of sales in 2021 6% of sales in 2021 20% of sales in 2021 6% of sales in 2021 Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2 In EUR bn SCHAEFFLER Revenue² 1.8 1.6 2020 2021 EBIT margin bsi 15.7% 13.9% 2020 2021 24#252 Our Divisions - Automotive Aftermarket Automotive Aftermarket - Capturing new growth opportunities Growth drivers Share of Wallet We realize untapped potential at current customer base Solutions & Service Offer We upgrade components to solutions and value-added services Way to Market We develop new distribution channels and business models Sep 21, 2022 Schaeffler AG - Baader Investment Conference + PUBLIC Growth enablers OC SCHAEFFLER Digital Competence We offer advanced digital services to improve customer experience Operational Excellence We employ state-of- the-art assembly and packing centers 25#262 Our Divisions - Automotive Aftermarket Automotive Aftermarket - REPXPERT Remote Support is the next level digital service for garages Bom Hav 8 O Chat 13 SCHAEFFLER Conventional technical support methods reach their limitations when it comes to complex, demanding vehicle repairs • Service technicians increasingly report difficulties in resolving technical inquiries via telephone or email Bearbeitung beenden Diese Nachricht wurde geche Nachricht eingeben VIFOND Schaeffler launches a Microsoft Dynamics 365 based technical support solution for smartphones, tablets or HoloLens • Images and sound transmitted in real time • Mixed reality to accurately visualize positions and rotational directions Free of charge for garages Fast login via QR code Available in Europe already in 2021 • No access barriers or licenses cost for garages Sep 21, 2022 REPXPERT Remote Support enables complex technical repairs and promotes direct contact to garages Schaeffler AG - Baader Investment Conference PUBLIC 26#272 Our Divisions - Automotive Aftermarket SCHAEFFLER Automotive Aftermarket - Aftermarket CRM: Cloud-based, integrated customer relationship management now live Sales • 360° customer view • Business potential identification • Sales planning • Reduced complexity • Processes efficiency Marketing • One source for all customer information • Extensive segmentation options for targeted customer interactions Service • Combine business ambitions with targeted marketing actions • Overview of engagement with REPXPERT services & digital touchpoints • Foundation for optimized service processes Holistic view for customer-centric, data driven and collaborative sales, marketing and service actions Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC EXLEKSAKANIING 27#282 Our Divisions - Industrial Industrial - Leading global component and system supplier Europe Greater China SCHAEFFLER Revenue² 3.6 3.1 41% of sales in 2021 28% of sales in 2021 Bearings Linear Technology 2020 2021 Americas Asia/Pacific 16% of sales in 2021 15% of sales in 2021 Broad range of products Mechanical Systems Service Solutions Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC EBIT margin bsi Mechatronic Systems 11.8% 8.8% 2 In EUR bn 2020 2021 28#292 Our Divisions - Industrial Industrial - Diversified portfolio with significant growth potential Market clusters Renewables 19% EUR 680 mn¹ (+8.2%²) Transportation & Mobility 30% Machinery & EUR 1,087 mn¹ (+11.6%²) Materials EUR 1,165 mn¹ (+13.7%²) Sector clusters Wind g Hydrogen as new sector cluster SCHAEFFLER Industrial Distribution share of total sales: ~28% Industrial sales development [EUR mn] 3,383 3,535 3,568 3,1323 Aerospace Rail Offroad Two-Wheelers 33% Power Transmission Raw Materials Industrial Automation 18% EUR 636 mn¹ (+23.8%²) Industrial Automation 1 Indicative sales split FY 2021 | 2 Indicative FX-adjusted sales growth FY 2021 | 3 Restated Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2018 2019 2020 2021 Industrial sales by region 2021 Asia Pacific 15% Greater China 28% 16% Americas 41% Europe 29#302 Our Divisions - Industrial 1 Market Cluster Renewables - Strong fundamentals of the market, confirming growth potential SCHAEFFLER Market Drivers Renewables - Sep 21, 2022 0 Wind energy ⚫ Schaeffler bearings in every ~2nd wind turbine globally • Core business portfolio complemented by Condition Monitoring offerings Growing demand for electricity and local energy resources Ambitious Climate Targets combined with rising CO2-cost ined with rising New production technologies Increasing cost competitiveness » Hydrogen ⚫ Launch of Electrolyzer Stacks as "heart of electrolysis" in 2022 Consortium lead for sub-project "Stack Scale up Industrializing PEM Electrolysis" of the H2Giga hydrogen flagship project SCHAEFFLER Schaeffler AG - Baader Investment Conference PUBLIC 30#312 Our Divisions - Industrial 2 Market Cluster Transportation & Mobility - Well positioned with diversified products and services SCHAEFFLER Market Drivers Transportation & Mobility Comprehensive portfolio Strong growth with standardized bearings, specialized bearings and sensorized modules • Portfolio extension with new products for e-mobility and electrification Increasing passenger mobility and freight transportation Transformation to e-mobility and electrification Automation and digitalization of high-end mobile machinery Rising life cycle management >> Circular economy • 100% return service for Rail wheelset bearings • Certified reconditioning processes for Aerospace engine bearings Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 31#322 Our Divisions - Industrial SCHAEFFLER 3 Market Cluster Machinery & Materials - Growing demand for sustainable, resource-saving solutions Market Drivers Machinery & Materials wwwwwww Serving multiple industries • Engagement in diverse sectors with leading market positions Bearing solutions across all requirements, from standard to high-performance products Growing demand for aggregates used for renewable energies Ongoing infrastructure expansion Increasing spreading of electric motors with improved efficiency Rising agriculture and construction machinery Value-adding service solutions Holistic services over the entire product lifecycle to increase uptime, efficiency and sustainability of operations • Globally available expert team supporting customers in performance optimization Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC Remanu- facturing REBUILD Expert Services OPTIMIZE OPERATE Condition Monitoring INSTALL Maintenance Tools & Mounting Services Lubrication 32#332 Our Divisions - Industrial SCHAEFFLER 4 Market Cluster Industrial Automation - Harnessing the rapidly increasing digitization and automatization Market Drivers Industrial Automation Innovative products . Expansion of mechatronic solutions such as highly efficient rotary drives • Innovative recirculating roller bearing and guideway assembly with low stroke pulsation and low friction for high positioning accuracy Increasing digitization and automatization of production Increasing cost pressure Platform strategies and standardi- zation for autonomous production Higher safety and sustainability requirements Robotics • High-performance components and system assemblies, focusing on applications in lightweight robots and cobots • Portfolio extension by planetary gearboxes from strategic acquisition of Melior Motion Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 33#34Agenda 1 Module 1 - Overview Schaeffler Group 2 Module 2 - Our Divisions 3 Module 3 - Q2 2022 Financials 4 Backup SCHAEFFLER Sep 21, 2022 Schaeffler AG - Baader Investment Conference 34 PUBLIC#353 Q2 2022 Financials SCHAEFFLER Q2 2022 Overview - Despite unprecedented complex macroeconomic environment, Schaeffler delivered a solid Q2 Key messages Q2 2022 - 1 Q2 Sales¹ +4.4% – Sales contracted in China in Q2 (-12.5%) due to Covid lockdowns, good growth in other regions Sales growth¹ Q2 +4.4% Order Intake² H1 Auto Technologies EUR 6.6 bn 2 3 Automotive Order Intake² of EUR 6.6 bn, strong book-to-bill-ratio³ at 1.6x - E-Mobility Ol of EUR 3.2 bn, FY target already reached in H1 EUR 3,790 mn of which E-Mobility: EUR 3.2 bn Q2 EBIT margin4 5.3% - Progressing price realization, only partially compensating cost inflation, headwind impacts 4 5 6 Q2 FCF5 EUR -219 mn - Lower EBITDA, Working Capital outflow in Q2, Restructuring cash outs affected FCF5 in H1, underlying trend healthy FY 2022 Guidance - All metrics confirmed; Sequentially improving Automotive topline expected in H2 driven by regional mix and pricing Macroeconomic picture - Uncertainty remains regarding headwinds intensity for the remainder of 2022 1 FX-adjusted | 2 Nominations to customer projects | 3 Lifetime Sales / Current period revenue 4 Before special items | 5 Before cash in- and outflows for M&A activities EBIT margin 4 Q2 5.3% Q2 2021: 8.8% Free Cash Flow5 Q2 EUR -219 mn Q2 2021: EUR 113 mn Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 35#363 Q2 2022 Financials SCHAEFFLER Sales - Moderate growth² in Q2 yoy, other regions overcompensated the China Q2 lockdown contraction Sales in EUR mn +9.7%¹ +4.4%2 Key aspects • Automotive Technologies: Strong growth² (+20%) in Americas driven by New and Mature Business, Region Europe growing² (+2.4%) despite • challenging environment; China impacted by lockdown in April Aftermarket: Growth² in all regions except Greater China • Industrial: Continuous double-digit growth², Europe (+25%) driven by Industrial Automation and Distribution business, Asia/Pacific (+20%) strong growth² in Industrial Distribution and in Renewables in India 3,560 3,454 3,332 3,506 3,758 3,790 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 EUR 7,014 mn EUR 7,548 mn Sales by region Q2 2022 yoy growth² 14% EUR 13,852 mn 20% +6.6% Asia/Pacific Greater China -12.5% Sales growth Reported +8.5% +50.8% -1.8% -3.3% FX-adjusted +5.6% +9.7% Americas +16.3% +12.3% +52.8% -3.5% -5.8% +1.9% +4.4% 23% 43% +7.6% Europe 1 Reported | 2FX-adjusted Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 36#373 Q2 2022 Financials SCHAEFFLER Gross Profit - Partial compensation of higher production costs thanks to overall positive pricing and increased volumes Gross Profit Q2 2021 vs. Q2 2022 | in EUR mn +78 +24 -1 -0 -166 +55 Key aspects • Pricing realization: Sequentially further improved in all divisions even if to a different extent • Volumes: Positive effect mainly due to strong development in Industrial in Europe, Americas and Asia/Pacific • Production costs: Higher yoy in all three divisions due to continued higher raw material costs in Q2 and further increased energy and logistics costs; Production inefficiencies due to volatile customer call- offs and supply chain interruptions ("Stop & Go") Gross margin 843 832 in % of sales Q2 21 Q2 22 Q2 22 vs. Q2 21 H1 22 H1 21 H1 22 vs. H2 21 Gross Profit Price Volume Q2 2021 Mix Production FX effect Others Gross Profit costs Automotive 20.8% 16.0% -4.8pp 22.7% 17.5% -5.2pp Q2 2022 Technologies Automotive 31.4% 30.4% -1.0pp 31.9% 30.8% -1.1pp Aftermarket Industrial 29.1% 30.3% Gross 24.4% margin +1.2pp 29.7% 29.8% +0.1pp 22.0% Group 24.4% 22.0% -2.4pp 25.7% 22.6% -3.1pp Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 37#383 Q2 2022 Financials Overhead costs - Increase yoy, freight and logistics costs the main drivers Overhead costs | in EUR mn +12.1% SCHAEFFLER Key aspects • R&D: Slightly higher yoy, mainly related to New Business projects in Automotive Technologies and in business fields Hydrogen and Robotics in Industrials Selling expenses: Significantly increased freight/logistics costs and higher volumes in Industrial • Admin costs: Rise yoy and sequentially due to higher expenses for IT and digitalization 604 622 • 575 581 555 555 188 203 R&D 192 191 183 181 283 Selling 246 232 243 256 257 Admin 137 139 130 134 145 151 Overhead cost ratio Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 in % of sales Q2 21 Q2 22 Q2 22 vs. Q2 21 H1 21 H1 22 H1 22 vs. H2 21 Automotive 15.3% 15.2% EUR 1,130 mn -0.2pp 14.8% 15.1% +0.3pp EUR 1,226 mn Technologies Automotive EUR 2,266 mn 15.5% 19.1% +3.6pp 17.4% 18.3% +0.9pp Aftermarket In % of sales Industrial 18.1% 17.7% -0.3pp 18.6% 17.8% -0.9pp 16.1% 16.1% 16.7% 16.6% 16.1% 16.4% Group 16.1% 16.4% +0.3pp 16.1% 16.2% +0.1pp Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 38#393 Q2 2022 Financials SCHAEFFLER EBIT¹- Solid margin in Industrial and Aftermarket, decline in Auto Technologies due to stronger headwinds EBIT¹ in EUR mn -3.5pp Key aspects • AT margin: Significantly declined yoy driven by lower absorption of fixed costs, production inefficiencies caused by volatile customer call-offs & China lockdown, input cost inflation (incl. freight and logistics costs) • AAM margin: Impacted by positive one-off effect in previous year and higher input costs • Industrial margin: Flat yoy, sharply increased input costs offset by volume and price; Production inefficiencies due to footprint consolidation and supply chain interruptions 397 305 260 260 258 200 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 EBIT margin¹ EBIT margin¹ in % of sales Automotive Q2 21 Q2 22 Q2 22 vs. Q2 21 H1 21 H1 22 H1 22 vs. H2 21 5.7% 0.5% -5.2pp 8.2% 2.0% -6.2pp Technologies 11.2% 8.8% 7.8% 7.4% 6.9% 5.3% Automotive 16.6% 12.5% -4.1pp 14.9% 13.0% -1.9pp H1 and FY EBIT margin¹ Aftermarket Industrial 11.9% 11.9% 0.0pp 11.8% 11.7% -0.2pp 10.0% 8.8% 6.1% Group 8.8% 5.3% -3.5pp 10.0% 6.1% -3.9pp 1 Before special items Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 39#403 Q2 2022 Financials SCHAEFFLER Automotive Technologies - Q2 Sales¹ affected by China lockdowns, EBIT margin² burdened by higher input costs Sales in EUR mn +1.3%¹ -1.0%¹ 4,365 4,515 2,084 2,222 Q2 2021 Q2 2022 H1 2021 H1 2022 Gross margin 20.8% 16.0% 22.7% 17.5% EBIT² in EUR mn -5.2pp 360 -6.2pp 119 91 11 Q2 2021 Q2 2022 H1 2021 H1 2022 EBIT margin² 5.7% 0.5% 8.2% 2.0% Sep 21, 2022 Schaeffler AG - Baader Investment Conference Strong growth in Region Americas, Region Europe growing even if in a challenging environment; Global Outperformance of 130 bps achieved in Q2 Strong development of Order Intake³ continued in Q2, leading to a H1 book-to-bill- ratio of 1.6x - E-Mobility Order Intake³ EUR 1.2 bn in Q2; E-Mobility FY Order Intake³ target already achieved in the first six months of the year Q2 sales¹ impacted by strong external headwinds: Lockdowns in China, ongoing supply chain disruptions, semiconductor shortages and the war in Ukraine Significant EBIT margin² decline in Q2 due to lower absorption of fixed costs & production inefficiencies caused by volatile customer call-offs, input cost inflation only partly offset by price realization; In addition, rising freight/logistics costs 1 FX-adjusted | 2 Before special items | 3 Nominations to customer projects | 4 Lifetime Sales / Current period revenue PUBLIC 40#413 Q2 2022 Financials SCHAEFFLER Automotive Technologies - Growth¹ in New Business, EBIT margin² sharply burdened by increased input costs, volatile customer call-offs and declined overall volumes Sales by business division | yoy growth E-Mobility Engine & Transmission Bearings Chassis Systems Total EBIT² Q2 2021 vs. Q2 2022 | in EUR mn Q2 2021 Q2 2022 Δ1 259 294 +7.9% 1,143 1,211 -0.1% 615 631 -1.7% 66 86 +27.4% 2,084 2,222 +1.3% Outperformance: Sales¹ vs. market development in Q2 -13 +9 -1.0pp 119 -106 +4 -2 11 EBIT Gross 0.5% Q2 2021 Profit R&D expenses SG&A expenses Others FX3 EBIT Q2 2022 -0.5% excl. FX +1.3pp +5.3pp +8.1pp 19.5% 11.4% 1.3% 0.0% 2.4% -2.9% FY 21 World +4.3pp Europe +9.3pp Americas +4.8pp -9.5pp -5.4% -14.9% Greater China +0.3pp Asia/Pacific +6.6pp Production of light vehicles Q2 2022 vs. Q2 2021 (IHS Markit (part of S&P Global), July 2022) Sales growth Schaeffler Automotive Technologies Q2 2022 vs. Q2 2021 Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 5.7% -5.2pp EBIT margin development2,4 +0.2pp 1 FX-adjusted | 2 Before special items -0.6pp -0.1pp +0.1pp 0.5% 3 Total FX effect including FX impact in Gross Profit, overhead and operative FX gains and losses Percentage values do not sum up due to isolated calculation of each individual effect 41#423 Q2 2022 Financials SCHAEFFLER Automotive Aftermarket - Q2 sales growth¹ driven by positive price effects, Q2 EBIT margin² lower due to 2021 positive one-offs Sales in EUR mn +4.3%¹ 467 +3.2%¹ 911 969 506 Q2 2021 Q2 2022 H1 2021 H1 2022 Gross 31.4% 30.4% 31.9% 30.8% margin EBIT² in EUR mn -4.1pp 78 -1.9pp 136 126 63 Underlying market conditions in Aftermarket business remain favorable - Sales growth¹ in all regions in Q2 except China; Europe above previous year¹ notwithstanding adverse business impacts deriving from the war in Ukraine Positive sales price adjustments compensating for increased input costs Q2 EBIT margin² lower yoy due to positive one-off effect in the previous year and higher input costs Q2 2021 Q2 2022 H1 2021 H1 2022 EBIT margin² 16.6% 12.5% 14.9% 13.0% 1 FX-adjusted | 2 Before special items Sep 21, 2022 Schaeffler AG - Baader Investment Conference 42 PUBLIC#433 Q2 2022 Financials SCHAEFFLER Automotive Aftermarket - Moderate growth¹ driven by Americas and Asia/Pacific, EBIT margin 5 down yoy due to positive one-off impact in Q2 2021 Sales by region | yoy growth EBIT5 Q2 2021 vs. Q2 2022 | in EUR mn Q2 2021 Q2 2022 Δ1 Europe 332 337 +1.2% Americas 86 110 +12.4% Greater China 26 26 -9.5% +2 -1 Asia/Pacific 24 33 +32.7% Total 467 506 +4.3% Automotive Aftermarket sales growth by channel¹ IAM² OES³ Total4 -10% 0% 10% 20% 30% 40% 50% 60% 70% Q2 2021 Q2 2022 1 FX-adjusted | 2 Independent Aftermarket | 3 Original Equipment Service | 4 Contains E-Commerce sales and sales to Automotive suppliers in addition to IAM and OES | 5 Before special items Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC -21 +2 +4 78 63 EBIT Q2 2021 Gross Profit R&D expenses SG&A expenses Others FX6 EBIT Q2 2022 excl. FX EBIT margin development5,7 16.6% -0.5pp -0.1pp -4.6pp +0.4pp +0.2pp 12.5% 6 Total FX effect including FX impact in Gross Profit, overhead and operative FX gains and losses Percentage values do not sum up due to isolated calculation of each individual effect 43#443 Q2 2022 Financials SCHAEFFLER Industrial - Strong growth¹ momentum continued, solid EBIT margin² despite increased cost headwinds Sales in EUR mn +11.7%1 +13.6%¹ 2,065 1,738 1,063 902 Q2 2021 Q2 2022 H1 2021 H1 2022 Gross 29.1% 30.3% 29.7% 29.8% margin EBIT² in EUR mn -0.1pp 241 +0.0pp 206 126 108 Strong growth¹ across all regions except Greater China - Industrial delivering more than EUR 1 bn sales level in Q2 again, despite macro headwinds Strong volume growth in Industrial Distribution and in Industrial Automation especially in Europe in Q2; Contribution from high demand in Industrial Distribution also in Americas and Asia/Pacific We are executing our strategy - Compelling acquisition of Ewellix with an excellent strategic fit, next to sound organic growth in the existing business overall EBIT margin² flat yoy due to sharply increased input and freight/logistics costs, volume-driven higher personnel expenses; Some inefficiencies linked to execution of planned consolidation actions in Europe arose in Q2, still, transitory impact Q2 2021 Q2 2022 H1 2021 H1 2022 EBIT margin² 11.9% 11.9% 11.8% 11.7% 1 FX-adjusted | 2 Before special items Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 44#453 Q2 2022 Financials SCHAEFFLER Industrial – Strong growth¹ continued, EBIT margin² flat yoy supported by both positive price and volume effects Sales by region | yoy growth EBIT² Q2 2021 vs. Q2 2022 | in EUR mn Q2 2021 Q2 2022 Δ1 Europe 357 448 +25.2% Americas 146 179 +9.1% Greater China 272 275 -8.3% -4 -16 -5 +5 Asia/Pacific 127 160 +19.5% +39 Total 902 1,063 +11.7% Sales by Industrial market cluster | yoy growth Industrial Distribution is 30.1% of Q2 sales +11.7% EUR 1,063 mn Renewables yoy growth¹ -6.0% 108 126 EUR 902 mn 194 191 312 Transportation & Mobility EBIT Q2 2021 +8.8% Gross Profit excl. FX R&D expenses SG&A expenses Others FX3 EBIT Q2 2022 272 Machinery & EBIT margin development2,4 352 +17.5% 284 Materials 11.9% +2.7pp -0.4pp -1.8pp -0.5pp -0.2pp 11.9% 156 205 Industrial +27.9% Automation Q2 2021 Q2 2022 1 FX-adjusted | 2 Before special items 3 Total FX effect including FX impact in Gross Profit, overhead and operative FX gains and losses Percentage values do not sum up due to isolated calculation of each individual effect Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 45#463 Q2 2022 Financials Net Income¹ - EPS² at EUR 0.17, ROCE³ reached 11.6% Net income¹ | in EUR mn -115 mn Key aspects SCHAEFFLER • Q2 2022 Net income¹ follows lower EBIT • ROCE³ and Schaeffler Value Added reduced as strong prior year quarters rolled off 235 227 149 145 136 113 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 ROCE³ and Schaeffler Value Added4 | in EUR mn 16.0% 13.2% 10.0% 11.6% 0.35 0.35 0.22 EPS² | in EUR 0.22 0.21 0.17 284 2 136 475 1.14 2019 2020 2021 H1 2022 ROCE before special items 1 Attributable to the shareholders of the parent company | 2 Earnings per common non-voting share 3 Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC Before special items | 4 LTM EBIT before special items minus Cost of Capital (10% × Ø Capital Employed) 46#473 Q2 2022 Financials Free Cash Flow - Impacted by tactical increase in inventory and softer margins in Q2 Free Cash Flow before M&A¹ | in EUR mn -332 mn Reconciliation Q2 2022 | in EUR mn -316 429 SCHAEFFLER 55 225 130 113 14 -175 -3 -88 -66 -219 -219 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 EBITDA Q2 2022 A Net Capex EUR 243 mn EUR -204 mn Working Capital Net Interest Taxes Others FCF Q2 2022¹ EUR 523 mn FCF Conversion ratio² FCF Details in EUR mn 0.3 0.3 0.8 0.2 0.1 Q2 2021 Q2 A Q2 H1 2022 22/21 2021 H1 2022 A H1 22/21 Reinvestment rate FCF as reported 115 -218 -333 242 -265 -507 0.5 0.6 0.9 1.0 0.6 0.8 M&A -2 -1 +1 1 61 +60 FCF before M&A 113 -219 -332 243 -204 -447 0.7 3.7% 3.9% 6.4% Capex ratio³ 5.4% 4.8% Legal cases -5 -7 -2 -3 -9 -6 Restructuring 47 44 -2 201 204 +3 4.2% 4.6% Others 6 0 -6 6 0 -6 Financing 0 19 +19 0 -16 -16 1 Before cash in- and outflows for M&A activities | 2 Ratio FCF before M&A to EBIT reported - Only applicable if FCF and EBIT positive | 3 Capex in % of sales FCF bef. M&A and sp. items 160 -163 -323 447 -25 -472 Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 47#483 Q2 2022 Financials SCHAEFFLER Net debt of EUR 2.6 bn - Leverage ratio¹ at 1.3x and solid liquidity position, EUR 328 mn paid in Dividends Net financial debt and Leverage ratio¹ | in EUR mn Leverage ratio¹ Key aspects • In April 2022 Dividend payment of EUR 328 mn for FY 2021 (44% payout ratio) • No maturities until March 2024 1.1 1.3 0.9 0.9 1.0 0.9 2,176 2,228 2,014 1,954 1,992 2,552 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Solid liquidity situation Gross debt 4,030 4,039 4,034 3,776 3,235 3,233 Cash & cash equivalents 1,854 1,810 2,020 1,822 1,243 681 • Cash and unused committed credit lines on Group level of around EUR 1.8 bn as per end of June, available liquidity³ 16% of LTM Net Sales Acquisition of Ewellix; exploiting opportunities notwithstanding challenging times EBITDA before special items² 1,939 2,409 2,339 2,180 2,049 1,947 1 Net financial debt to EBITDA ratio before special items | 2 LTM | ³ Excluding restricted cash Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 48#493 Q2 2022 Financials SCHAEFFLER Capital allocation - Capex prioritizing investments in growth business and regions, Capex ratio² of 4.6% in Q2 Investment¹ allocation | in EUR mn FY 20 FY 21 Q2 21 Q2 22 H1 22 Key aspects Q2 2022 • Reinvestment Rate Target: Continued prioritization of Industrial Division and BD E-Mobility; <0.5 in BD Bearings and Engine & Transmission Automotive 378 428 84 117 198 Technologies • Automotive Technologies: Capacity expansion and machinery investments for E-Motor components in China and Mexico Automotive 26 20 4 7 12 Aftermarket Industrial 234 223 43 50 93 Schaeffler 639 670 131 175 303 Group • Industrial: Further investments in building a new Industrial production hall in India and capacity expansion in South Korea • UPDATE Capex FY 2022: Around EUR 750 mn (previously: EUR ~800 mn) Investments¹ by region H1 2022 in EUR mn (yoy change) 42 (+26) Asia/Pacific 14% 22% Capex 632 671 136 175 331 Greater China 66 (+14) 149 (+3) Europe Capex ratio² 5.0% 4.8% 3.9% 4.6% 4.4% 15% Americas 46 (+20) 49% Reinvestment 0.7 0.7 0.6 0.8 0.7 Rate 1 Additions to intangible assets and property, plant and equipment | 2 Capex in % of sales Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 49#503 Q2 2022 Financials Market assumptions - What changed in our market assumptions since May Automotive Technologies - Global LVP1 2022 Automotive Aftermarket - Global LV Parc³ SCHAEFFLER Industrial-Industrial Production4 7% 77.2 ~77 8% 6% 5% 39.4 37.8 42.1 Around -3.8 mn discount 6% World 4% 38.7 vs. IHS² 4% 3% estimate of World 80.8 mn 2% vehicles 2% 1% 0% 0% H1 H2 2021 H1 H2 Schaeffler assumptions 2022e ~0% yoy vs. 2021 IHS¹ assumptions Europe Americas Greater China Asia/Pacific Europe Americas Greater China Asia/Pacific FY 2022E FY 2022E . Discount of ~3.8 mn vehicles to July IHS2 estimate of 80.8 mn LVP in 2022 leading to a stagnating market in comparison to 2021. More cautious estimate than IHS² due to uncertainty in markets and supply chains For H2 we expect stagnating market volumes compared to H1, which implies slight growth yoy; Market challenges may differ regionally in H2, e.g. depending on specific Covid situation 1 Light Vehicle Production (IHS Markit (part of S&P), July 2022) 2 IHS Markit (part of S&P Global) • Growth of Global LV Parc³ with 2.1% for 2022 slightly lower than 2021 (2.4%) at slightly higher average age of 10.3 (2021: average age of 10.1 years) due to new vehicle sales drop, e.g. caused by supply disruptions Highest growth is expected for Greater China (6.3%); lowest for Americas (0.5%) due to the stagnation of new car registrations 3 Light Vehicle Parc for Passenger Cars and Light Commercial Vehicle <3.5t (IHS Markit (part of S&P), June 2022) • • 4 Growth of global industrial production 4 set to slow markedly to ~4.0% in 2022 after rapid expansion in 2021 (11.7%) Highest growth expected in the Americas (6.5%); lowest growth expected in Europe (1.9%) due to implications from war in Ukraine, esp. in Germany and Eastern Europe Industrial Production (Oxford Economics, June 2022) Sectors considered: Mechanical Engineering (NACE 28), Transport Equipment (NACE 30), Electrical Equipment (NACE 27.1) Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 50#513 Q2 2022 Financials FY 2022 Guidance - Outlook for all metrics confirmed SCHAEFFLER Group Guidance Actuals FY 2021 Guidance FY 2022 Actuals Divisional Guidance Automotive Technologies Guidance Automotive Aftermarket Actuals Guidance Industrial Actuals Guidance FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 Sales growth¹ 10.2% 6-8% Out- Out- performance performance 430 bps 200 - 500 bps Consider- 13.9% Moderate growth 14.2% able growth 6.4% > 2.5% 13.9% > 12% 11.8% > 11% EBIT margin² 8.8% 5-7% Free Cash Flow³ EUR 523 mn > EUR 250 mn 1 FX-adjusted | 2 Before special items | 3 Before cash in- and outflows for M&A activities 4 LVP (IHS Markit (part of S&P), July 2022) 5 LV Parc for PC and LCV <3.5t (IHS Markit (part of S&P), June 2022) Market assumptions for 2022 Automotive Technologies: LVP growth stagnating yoy (~77 mn expected) vs. 4.7% growth in latest IHS estimate • Automotive Aftermarket: Growth of Global LV Parc5 of 2.1% • Industrial: Increase of relevant industrial production of ~4% Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 51#523 Q2 2022 Financials Road to 2025 - Mid-term Targets are reflected in Schaeffler's comprehensive Financial Framework SCHAEFFLER Mid-term Targets Automotive Technologies Outperformance¹ 200 to 500 bps on average² 4 to 6% EBIT margin before special items4 Automotive Aftermarket > GDP growth on average² 13 to 15% FX-adj. sales growth Industrial FX-adj. sales growth Key aspects • Consistent with incentive system • Clearly defined path to target > Ind. Prod. growth on average² 3 12 to 14% • Focus on ROCE and Free Cashflow Conversion on Group-level Divisionalized Targets reflect internal commitments EBIT margin before special items4 EBIT margin before special items4 Schaeffler Group ROCE 12 to 15% based on EBIT reported 4 FCF conversion 0.3 to 0.5 based on EBIT reported 45 Group parameters Capital Structure 1.2× to 1.7x Net debt / EBITDA before special items Dividend policy 30 to 50% of Net Income before special items Concrete commitments fully cascaded into the organization 1 FX-adj. sales growth above Light Vehicle Production (IHS) | 2 from 2021 to 2025 | 3 Industrial Production (Oxford Economics) | 4 latest in 2023 | 5 before cash in- and outflows for M&A Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 52#53Agenda 1 Module 1 - Overview Schaeffler Group 2 Module 2 - Our Divisions 3 Module 3-Q2 2022 Financials 4 Backup SCHAEFFLER Sep 21, 2022 Schaeffler AG - Baader Investment Conference 53 PUBLIC#54Backup SCHAEFFLER H1 2022 Sales¹ development - All divisions were impacted by China lockdowns in Q2, even if to a different extent Europe Automotive Technologies % of Group 60% sales H1 2022 42% +6.0% +0% 0:ג Automotive Industrial Aftermarket 13% 27% +0% +26% Americas 23% +9.5% +9% +12% +10% Greater China 21% -8.0% -10% +0% -5% Asia/Pacific 14% +3.4% 1 H1 FX-adjusted sales growth, please refer to the Interim Report for further details Sep 21, 2022 Schaeffler AG - Baader Investment Conference -5% PUBLIC +24% +21% H1 Sales growth¹ 54 F#55Backup Net Income¹- EBIT reconciliation and special items Reconciliation H1 2022 | in EUR mn -24 -66 -105 -13 SCHAEFFLER Key aspects • Special items amounted to EUR 24 mn in H1, mainly related to the consolidation of the Footprint in Europe within "Roadmap 2025" • Financial Result EUR -22 mn below prior year mainly driven by FX effects (devaluation EUR vs. USD) and interest on pensions slightly increased due to the rise in discount rates • Lower income tax expense is mainly due to a year-on-year decrease in EBT, an increase in tax credits and tax income from the previous year Special items by division | in EUR mn 458 434 249 Q2 21 Q2 22 Q2 22 vs. Q2 21 H1 21 H1 22 H2 22 vs. H2 21 EBIT bsi² Special items EBIT reported Financial result Income taxes Others Net Income¹ EBIT Reported 341 186 -155 723 434 -289 Automotive -21 +10 +31 -13 +13 +26 Technologies Automotive -11 0 +11 -10 +1 +11 EBIT margin 6.1% Aftermarket 5.7% Industrial -4 +3 +7 +2 +10 +8 Group -37 14 +51 -22 24 +46 EBIT bsi² 305 200 -105 702 458 -244 1 Attributable to the shareholders of the parent company | 2 Before special items Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 55#56Backup Free Cash Flow¹ details H1 2022 - FCF hampered by lower EBITDA and Working Capital outflow SCHAEFFLER FCF¹ H1 2021 vs. H1 2022 | in EUR mn 243 A Net Working Capital EUR -58 mn -282 -52 -64 -204 -169 +164 -44 Key aspects • Negative EBITDA development yoy mainly due to challenging conditions • Net Working Capital negative with EUR -58 mn driven by increased inventories and receivables • Others included cash outs for the Restructuring Program announced in September 2020 Net Working Capital details | in EUR mn Change in Inventories FCF H1 20211 EBITDA Inventories Receivables Payables Capex Others FCF Receivables Q2 Q2 A Q2 2021 2022 22/21 -173 -157 +16 +41 -125 -165 H1 H1 A H1 2021 2022 22/21 -367 -419 -52 -98 -267 -169 H1 20221 Payables -46 -34 +12 +110 +274 +164 A Net Working Capital -178 -316 -137 -354 -412 -58 Working Capital ratio² 19.4 22.1 19.4 22.1 1 Before cash in- and outflows for M&A activities Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2 in % of sales (LTM) 56#57Backup Working Capital¹ ratio 22.1% - Capex ratio² 4.6% in Q2 Working capital¹ | in EUR mn +458 mn SCHAEFFLER Capex2 in EUR mn +39 mn 2,543 2,726 2,752 2,700 2,803 3,184 132 136 215 188 156 175 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 19.8% 19.4% 19.7% in % of sales (LTM) 19.5% in % of sales 20.0% 22.1% 3.7% 3.9% 6.4% 5.4% 4.2% 4.6% 19.5% 4.8% 1 According to balance sheet; figures as per the end of period Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 2 Cash view 57#58Backup Automotive Technologies (AT) outperformance by quarters YTD Q1 22 Q2 22 Outperformance: +0.8pp IHS¹ World -3.4% AT² -3.2% Outper- formance IHS¹ AT² Outper- formance +0.2pp 0.0% +1.3% +1.3pp Europe -15.0% -1.9% +13.1pp -2.9% +2.4% +5.3pp Americas -3.3% +0.3% +3.6pp +11.4% +19.5% +8.1pp Greater China +7.3% -5.3% -12.6pp -5.4% -14.9% -9.5pp Asia/Pacific -3.9% -8.3% -4.4pp +0.5% -0.5% -1.0pp SCHAEFFLER FY 21 Q1 21 Q2 21 Outperformance: +4.3pp Outper- Outper- IHS¹ AT² formance IHS¹ AT² formance IHS¹ AT² Q3 21 Outper- formance Q4 21 IHS¹ AT² Outper- formance World +15.9% +17.0% +1.1pp +48.2% Europe +2.3% +3.3% +1.0pp +81.2% Americas -2.8% +6.7% +9.5pp Greater China +78.0% +74.8% Asia/Pacific +5.2% +14.0% -3.2pp +8.8pp +146.9% -4.3% +82.1% +67.5% +120.4% +137.2% +19.3pp -19.1% -13.1% +6.0% -10.2% -12.5% -2.3% +39.2pp -28.7% -16.3% +12.4% -21.7% -16.4% +5.3% -9.7pp -24.5% -16.0% +8.5% -13.4% -16.0% -2.6% +3.1% +63.9% +7.4pp -13.9% -16.1% -2.2% -1.1% -6.0% -4.9% -18.2pp -10.8% +7.3% +18.1% -8.8% -9.3% -0.5% 1 Light Vehicle production growth according to IHS Markit (part of S&P Global), July 2022 | 2 FX-adjusted sales growth of Automotive Technologies Division Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 58#59Backup Key figures by Group and Division Group | in EUR mn Automotive Aftermarket | in EUR mn SCHAEFFLER Adjusted comparative figures 2021 Q1 21 Q2 21 Q3 21 Sales 3,560 3,454 3,332 3,506 Q4 21 FY 21 13,852 Q1 22 Q2 22 3,758 3,790 Sales Sales Growth¹ +12.3% +52.8% -3.5% -5.8% +10.2% +1.9% +4.4% Sales Growth¹ EBIT Reported 382 341 266 231 1,220 247 186 EBIT Reported Q1 21 Q2 21 444 +4.9% 57 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 467 500 437 1,848 463 506 +57.9% +9.0% -2.1% 13.9% +2.1% +4.3% 89 80 48 274 62 63 EBIT bsi 397 305 260 260 EBIT bsi margin 11.2% 8.8% 7.8% 7.4% 1,222 258 8.8% 6.9% 200 EBIT bsi 58 78 72 49 256 63 63 5.3% EBIT bsi margin 13.1% 16.6% 14.3% 11.2% 13.9% 13.6% 12.5% Automotive Technologies | in EUR mn Industrial in EUR mn Q1 21 Q2 21 Q3 21 Q4 21 Sales Sales Growth¹ 2,281 +17.0% +67.5% 2,084 1,921 -13.1% 2,150 -12.5% FY 21 Q1 22 8,436 +7.8% -3.2% Q2 22 Q1 21 2,293 2,222 Sales +1.3% Sales Growth¹ EBIT Reported 232 141 96 110 579 77 1 EBIT Reported 836 +4.7% 92 EBIT bsi 240 119 77 107 544 80 11 EBIT bsi 98 Q2 21 902 +25.4% 112 108 Q3 21 911 +15.8% 89 Q4 21 919 +12.0% FY 21 3,568 Q1 22 Q2 22 1,002 1,063 14.2% +15.7% +11.7% 74 112 104 367 421 108 123 115 126 EBIT bsi margin 10.5% 5.7% 4.0% 5.0% 6.4% 3.5% 0.5% EBIT bsi margin 11.8% 11.9% 12.3% 11.3% 11.8% 11.4% 11.9% 1 FX-adjusted Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 59#60Backup Overview Corporate and Financing Structure Corporate structure (simplified) | as of June 30, 2022 Free float 54.0% INA-Holding Schaeffler GmbH & Co. KG 100% IHO Beteiligungs GmbH 100% Financing structure | as of June 30, 2022 SCHAEFFLER A IHO Verwaltungs GmbH Debt instrument Nominal Nominal (USD m) (EUR¹ m) Interest Maturity Rating (Fitch/Moody's/S&P) Loans Bonds RCF (EUR 800 m) 260 E+3.25% Dec-24 Not rated 3.625% SSNs 2025 (EUR) 3.75% SSNs 2026 (EUR) 800 3.625% May-25 BB/Ba2/BB- 750 3.750% Sep-26 BB/Ba2/BB- 4.75% SSNs 2026 (USD) 500 482 4.750% Sep-26 BB/Ba2/BB- 3.875% SSNs 2027 (EUR) 500 3.875% May-27 BB/Ba2/BB- 6.00% SSNs 2027 (USD) 450 433 6.000% May-27 6.375% SSNs 2029 (USD) 400 385 6.375% May-29 BB/Ba2/BB- BB/Ba2/BB- Total IHO Verwaltungs GmbH 3,610 3.98% 2,3 A IHO Verwaltungs GmbH 10.0% 10.0% B Schaeffler AG Debt instrument Free float 36.0%¹) 24.9% 75.1% 36.0% Vitesco Technologies B Group AG Schaeffler AG Continental AG Nominal (USD m) Nominal (EUR m) Interest Maturity Rating (Fitch/Moody's/S&P) Loans RCF (EUR 1,800 m) Schuldschein Loans (EUR) 298 E+0.80% Sep-24 02.13% May-23, 25, 28 & 30 Not rated Not rated Free float CP Commercial Paper Program (EUR) Not rated Bonds 1.875% SNS 2024 (EUR) 800 1.875% Mar-24 BB+/Ba1/BB+ 2.750% SNS 2025 (EUR) 750 2.750% Oct-25 BB+/Ba1/BB+ 54.0% 2.875% SNS 2027 (EUR) 650 2.875% Mar-27 3.375% SNs 2028 (EUR) 750 3.375% Oct-28 BB+/Ba1/BB+ BB+/Ba1/BB+ Total Schaeffler Group 3,248 Ø 2.80%³ 1 On July 4, 2022, IHO Verwaltungs GmbH announced to increase its stake in Vitesco Technologies Group AG to 39.99%. 1 EUR/USD = 1.0387| 2 After cross currency swaps | 3 Incl. commitment and utilization fees Sep 21, 2022 Schaeffler AG - Baader Investment Conference PUBLIC 60#61IR Contact Investor Relations Phone: +49 9132 82-4440 Email: Web: [email protected] www.schaeffler.com/ir PUBLIC SCHAEFFLER We pioneer motion