Vitesco Technologies publishes prospectus, stock exchange listing planned for September 2021

Vitesco Technologies, a leading international developer and manufacturer of state-of-the-art powertrain technologies for sustainable mobility, today published its prospectus which was approved by the Bundesanstalt für
Finanzdienstleistungsaufsicht (BaFin; German Federal Financial Supervisory Authority). The company, Continental AG’s former Powertrain business area, plans a listing on the Frankfurt Stock Exchange on September 16, 2021.

Very early on in our planning we set our strategy decisively toward e-mobility and initiated the crucial first steps for getting there. From September 16 onwards, we will be an independent company, enabling us to benefit even more from the opportunities offered by the fast-growing e-mobility market,” said Andreas Wolf, CEO Vitesco Technologies.

The positive first half of the year: order intake confirms the strategy The first half of 2021 has reinforced the positive upward trend despite difficult market conditions. Globally, around 500,000 vehicles were electrified by Vitesco Technologies in the first half of 2021. “This is an enormous increase. In comparison, we were able to equip more than two million vehicles with the electrification solutions of our business

In total, Vitesco Technologies generated sales of €4.4 billion in the
first six months (HY1 2020: €3.4 billion, +29 percent). Adjusted EBIT
increased year-on-year to €84.2 million (HY1 2020: -€218.1 million),
and the adjusted EBIT margin therefore increased to +1.9 percent
(HY1 2020: -6.4 percent). Adjusted EBIT increased mainly due to
higher production volumes and strict fixed cost discipline, despite
additional headwinds due to material shortages.

The volume of new orders booked in the first half of 2021 was €3.8
billion, of which nearly half, approximately €1.8 billion, was for
electrification products across all business units. “Margin recovery,
consistent cost management, continued disciplined capital
expenditure, a positive working capital and special effects relating to
the Spin-off contributed to strong cash generation overall in the first
six months 2021. While the figures are very encouraging, we may
continue to face challenges in the coming months due to global
material shortages,” said Werner Volz, CFO Vitesco Technologies.

Forging ahead with re-focusing the company

While Vitesco Technologies continues to push the expansion of its
electrification business in line with dynamic customer demand, the
company is also gradually withdrawing from combustion-specific
technologies. This also includes the scheduled phasing out of
contract manufacturing between Continental and Vitesco
Technologies.

“We had a positive first half-year and are on track to achieve our
targets. Our clear strategic alignment to electrification is
underscored by concrete measures: We have focused on growing
our product portfolio further and faster with regard on electrification.
We are well positioned in our market and coupled with the strong
momentum in e-mobility, we see attractive growth opportunities for
us,” said CEO Andreas Wolf.

In addition, Vitesco Technologies employees worldwide are being
trained in the area of electric mobility. To date, around 500 Vitesco
Technologies employees have successfully completed our internal
“Electrification Program” training curriculum, the majority of whom
are already working on electrification projects.

Sustainability and ESG as integral parts of our value chain

Current strategic steps taken include new internal ESG steering
mechanisms as well as memberships in the Responsible Business
Alliance (RBA) and Renewable Energy 100 (RE100), which come with
voluntary commitments to the exclusive use of renewable energy
and exemplary human rights due diligence. As of May 2021, Vitesco
Technologies is also a signatory of the UN Women’s Empowerment
Principles and the “Charter of Diversity”, emphasizing the
company’s commitment to the economic and social benefits of
diversity as well as to an inclusive society and workplace.

Supervisory Board of Vitesco Technologies announced:
Siegfried Wolf is the designated chairman of the Supervisory
Board

With the publication of the prospectus, Vitesco Technologies Group
AG has also announced today its future, extended Supervisory
Board and its members. The new Supervisory Board of Vitesco
Technologies Group AG will consist of 16 members: eight
shareholder representatives and eight employee representatives.
The designated Chairman of the Supervisory Board is the Austrian
investor and entrepreneur Professor Siegfried Wolf. He will present
himself for election by the Supervisory Board at its constituent
meeting.

Listing and first day of trading planned for September 16, 2021 The opening share price of Vitesco Technologies Group AG will be set on the day of listing as part of an opening auction. The price is therefore expected to be determined shortly after the start of trading. The shares of Vitesco Technologies Group AG with the International Securities Identification Number (ISIN) DE000VTSC017 and German Securities Number (Wertpapierkennnummer, WKN) VTSC01 will be listed and traded on the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the trading symbol VTSC.

The shareholders of Continental AG present at the Annual General Meeting on April 29, 2021 had previously approved the spin-off of Vitesco Technologies. Current Continental AG shareholders will be allocated new Vitesco Technologies shares at a ratio of 5:1, i.e. one Vitesco Technologies share for every five Continental shares. After the shares have been allotted and with the expected start of trading on September 16, Vitesco Technologies’ shares will be freely tradable.