Charting New Paths.

The disposal of goodwill due to changes in the scope of consolidation amounting to €2,098 million and the disposals from other intangible assets due to changes in the scope of consolidation amounting to €392 million resulted mainly from the spin-off of the former Automotive and Contract Manufacturing segments. Please see Note 6.

The disposal of goodwill in 2024 totaling €43 million resulted mainly from the sale of some operations in the Autonomous Mobility business area of the former Automotive segment. Please see Note 5.

Impairment on goodwill of €124 million and impairment on other intangible assets of €29 million were recognized for the OESL disposal group. Please see Note 9. In addition, impairment of €4 million was recognized on other intangible assets in the reporting year. These were mainly attributable to continuing operations and related to software applications that are no longer usable. €3 million of this was attributable to the functional area of administrative expenses.

€ millions	Goodwill	Capitalized development expenses	Other intangible assets	Advances to suppliers	Total other intangible assets
As at Jan. 1, 2024
Cost	7,871	525	3,195	7	3,727
Accumulated amortization	–4,683	–390	–2,516	0	–2,906
Book value	3,187	135	679	7	820
Net change in 2024
Book value	3,187	135	679	7	820
Exchange-rate changes	21	–1	14	0	13
Additions	—	16	22	3	41
Additions from the first-time consolidation of subsidiaries	–1	—	0	—	0
Amounts disposed of through disposal of subsidiaries	–43	—	–44	—	–44
Transfers	0	0	3	–3	0
Disposals	—	0	–4	0	–4
Amortization	—	–52	–155	—	–208
Impairment	—	—	—	—	—
Book value	3,165	98	515	7	619
As at Dec. 31, 2024
Cost	7,847	520	3,072	7	3,599
Accumulated amortization	–4,683	–422	–2,557	0	–2,979
Book value	3,165	98	515	7	619
Net change in 2025
Book value	3,165	98	515	7	619
Exchange-rate changes	–86	–1	–16	0	–17
Additions	0	2	16	3	21
Additions from the first-time consolidation of subsidiaries	—	—	—	—	—
Amounts disposed of through disposal of subsidiaries	–2,098	–91	–299	–3	–392
Transfers	—	—	3	–3	0
Disposals	—	—	0	0	–1
Amortization	—	–8	–75	—	–83
Impairment	–124	—	–32	–1	–32
Book value	856	—	113	3	115
As at Dec. 31, 2025
Cost	908	—	1,404	3	1,407
Accumulated amortization	–52	—	–1,292	0	–1,292
Book value	856	—	113	3	115

The table below shows the goodwill of each cash-generating unit (CGU), in line with the applicable organizational structure in the respective fiscal year, which forms the basis for operational internal control:

	Goodwill
€ millions	Dec. 31, 2025		Dec. 31, 2024
		Automotive	2,129
Original Equipment	2	Original Equipment	2
Replacement EMEA (Europe, the Middle East and Africa)	170	Replacement EMEA (Europe, the Middle East and Africa)	170
Replacement APAC (Asia-Pacific region)	187	Replacement APAC (Asia-Pacific region)	197
Replacement The Americas (North, Central and South America)	15	Replacement The Americas (North, Central and South America)	17
Specialty Tires	18	Specialty Tires	20
Tires	392	Tires	407
Industrial Solutions Americas	219	Industrial Solutions Americas	246
Industrial Solutions APAC	81	Industrial Solutions APAC	87
Industrial Solutions EMEA	40	Industrial Solutions EMEA	40
Original Equipment Solutions	—	Original Equipment Solutions	130
Surface Solutions	124	Surface Solutions	125
ContiTech	464	ContiTech	629
Continental Group	856	Continental Group	3,165

The additions to the purchased intangible assets relate mainly to software in the amount of €14 million (PY: €22 million).

Amortization of other intangible assets for continuing and discontinued operations as shown in the table above amounted to €83 million (PY: €208 million). Of this, €48 million (PY: €56 million) is included in the consolidated statement of income under cost of sales, €12 million (PY: €14 million) under administrative expenses and €23 million (PY: €138 million) under earnings after tax from discontinued operations.

The other intangible assets include carrying amounts adjusted for translation-related exchange-rate effects and not subject to amortization in the amount of €12 million (PY: €40 million). These relate in particular to the Phoenix brand name (Industrial Solutions EMEA CGU) in the amount of €4 million (PY: €4 million) and the Matador brand name (Replacement EMEA [Europe, the Middle East and Africa] CGU) in the amount of €3 million (PY: €3 million). The purchased intangible assets also include the carrying amounts of software amounting to €23 million (PY: €122 million), which are amortized on a straight-line basis as scheduled.

14. Property, Plant and Equipment

In the Tires segment, investments were made to optimize and expand production capacity at existing plants in European best-cost locations and in the USA, Thailand, Germany, China and Brazil. There were major additions related to the expansion of production sites in Rayong, Thailand; Mount Vernon, Illinois, USA; and Hefei, China. Quality assurance and cost-cutting measures were implemented as well. To further strengthen our customer-focused supply chains, we also invested during the reporting year in the establishment of a dedicated regional distribution center in the USA.

Investments were mainly made in the ContiTech segment to expand production capacity in Germany, Mexico, the USA, China, Romania and Hungary. There were major additions related to the expansion of production capacity in selected growth markets for the Industrial Solutions Americas, Original Equipment Solutions, Industrial Solutions EMEA and Surface Solutions business areas. In Aguascalientes, Mexico, investments were made in the development of an additional production site for the Industrial Solutions Americas business area. In addition, investments were made in all business areas to optimize existing production processes.

Impairment on property, plant and equipment led to expenses totaling €342 million (PY: €36 million). €310 million of this was attributable to property, plant and equipment of the OESL disposal group. In the former Automotive segment, impairment on property, plant and equipment totaling €20 million (PY: €29 million) was recognized in the reporting year. Impairment on property, plant and equipment for continuing operations led to expenses totaling €12 million (PY: €7 million). €12 million (PY: €7 million) of this was attributable to the functional area of cost of sales. The impairments related mainly to the scrapping of machinery. There was no reversal of impairment losses on property, plant and equipment in either the reporting year or the previous year.

The disposal of property, plant and equipment due to changes in the scope of consolidation amounting to €4,979 million (PY: €14 million) was primarily attributable to the spin-off of the former Automotive and Contract Manufacturing segments.

Please see Note 24 for information on reclassifications to assets held for sale during the period.

Government investment grants of €6 million (PY: €27 million) were deducted directly from cost.

As in the previous year, no borrowing costs were capitalized when applying IAS 23, Borrowing Costs.

There are restrictions on title and property, plant and equipment pledged as security for liabilities in the amount of €5 million (PY: €9 million).

Please see Note 15 for information on the right-of-use assets that are recognized under property, plant and equipment in accordance with IFRS 16, Leases.

€ millions	Land, land rights and buildings1	Technical equipment and machinery	Other equipment, factory and office equipment	Advances to suppliers and assets under construction	Total
As at Jan. 1, 2024
Cost	5,992	18,996	3,240	2,006	30,234
Accumulated depreciation	–2,615	–14,488	–2,470	–62	–19,636
Book value	3,377	4,508	769	1,944	10,598
Net change in 2024
Book value	3,377	4,508	769	1,944	10,598
Exchange-rate changes	13	0	–3	–28	–18
Additions	65	530	142	1,175	1,913
Additions from the first-time consolidation of subsidiaries	—	1	0	0	1
Amounts disposed of through disposal of subsidiaries	–2	–4	–8	0	–14
Reclassifications to/from assets held for sale	3	—	—	—	3
Transfers	289	812	128	–1,229	0
Disposals	–10	–35	–4	–2	–51
Depreciation	–220	–1,200	–232	—	–1,651
Impairment1	–1	–28	–3	–3	–36
Book value	3,514	4,584	790	1,856	10,744
As at Dec. 31, 2024
Cost	6,352	19,630	3,313	1,892	31,187
Accumulated depreciation	–2,839	–15,047	–2,522	–36	–20,444
Book value	3,514	4,584	790	1,856	10,744
Net change in 2025
Book value	3,514	4,584	790	1,856	10,744
Exchange-rate changes	–126	–152	–23	–46	–348
Additions	54	346	79	958	1,438
Additions from the first-time consolidation of subsidiaries	0	0	0	—	0
Amounts disposed of through disposal of subsidiaries	–1,248	–2,357	–470	–874	–4,949
Reclassifications to/from assets held for sale	–13	–30	–1	–2	–44
Transfers	165	567	95	–819	8
Disposals	–7	–19	–5	–4	–35
Depreciation	–156	–681	–122	—	–959
Impairment1	–77	–189	–29	–46	–342
Book value	2,106	2,069	315	1,023	5,513
As at Dec. 31, 2025
Cost	3,948	10,409	1,396	1,037	16,789
Accumulated depreciation	–1,841	–8,340	–1,081	–14	–11,276
Book value	2,106	2,069	315	1,023	5,513

1 Impairment also includes necessary reversals of impairment losses.

15. Leases

In addition to the comments in Note 2, the disclosure requirements arising from IFRS 16, Leases, are grouped together in this note.

Continental Group as lessee

Right-of-use assets

The right-of-use assets recognized from leases relate primarily to the leasing of land and buildings at various locations worldwide. To a small extent, right-of-use assets are recognized for technical equipment and machinery as well as other equipment, factory and office equipment.

Additions within the right-of-use assets amounted to €298 million for the reporting year (PY: €267 million). These resulted mainly from additions to land and buildings in the amount of €251 million (PY: €205 million) and from additions to other equipment, factory and office equipment in the amount of €45 million (PY: €59 million).

There were no material additions to right-of-use assets in the reporting year due to changes in the scope of consolidation. In the previous year, the additions to right-of-use assets due to changes in the scope of consolidation totaling €2 million resulted mainly from the acquisition of EMT Púchov s.r.o., Puchov, Slovakia. The disposals of right-of-use assets due to changes in the scope of consolidation in the reporting year amounting to €355 million (PY: €4 million) were primarily attributable to the spin-off of the former Automotive and Contract Manufacturing segments. Please see Note 6.

Impairment on right-of-use assets of the OESL disposal group totaled €28 million. In the former Automotive segment, a reversal of impairment losses on right-of-use assets totaling €2 million was recorded in the reporting year (PY: impairment of €1 million). Impairment on right-of-use assets led to expenses for continuing operations totaling €7 million (PY: —), of which €1 million (PY: —) was attributable to the functional area of cost of sales and €6 million (PY: —) to selling and logistics expenses.

The impairment mainly related to a warehouse in the amount of €6 million (PY: —). There was no reversal of impairment losses on right-of-use assets for continuing operations in either the reporting year or the previous year.

The right-of-use assets reported as at December 31, 2025, in the amount of €666 million (PY: €1,055 million) correspond to 10.8% (PY: 8.9%) of all property, plant and equipment of the Continental Group. The weighted average lease term is approximately five years (PY: approx. six years) for right-of-use assets for land and buildings, approximately four years (PY: approx. three years) for right-of-use assets for technical equipment and machinery, and approximately four years (PY: approx. four years) for right-of-use assets for other equipment, factory and office equipment.

The development of right-of-use assets in the reporting year was as follows:

€ millions	Right of use for land and buildings	Right of use for technical equipment and machinery	Right of use for other equipment, factory and office equipment	Total
As at Jan. 1, 2024
Cost	2,135	12	160	2,307
Accumulated amortization	–1,091	–8	–84	–1,183
Book value	1,044	4	77	1,124
Net change in 2024
Book value	1,044	4	77	1,124
Exchange-rate changes	–5	0	0	–5
Additions	205	3	59	267
Additions from the first-time consolidation of subsidiaries	2	1	0	2
Amounts disposed of through disposal of subsidiaries	–3	—	0	–4
Transfers	0	0	0	0
Disposals	–10	0	–5	–14
Amortization	–267	–2	–45	–314
Impairment	–1	—	—	–1
Book value	964	4	86	1,055
As at Dec. 31, 2024
Cost	2,197	12	173	2,383
Accumulated amortization	–1,233	–8	–87	–1,328
Book value	964	4	86	1,055
Net change in 2025
Book value	964	4	86	1,055
Exchange-rate changes	–25	0	–2	–27
Additions	251	2	45	298
Additions from the first-time consolidation of subsidiaries	0	0	0	0
Amounts disposed of through disposal of subsidiaries	–325	–2	–29	–355
Reclassifications to/from assets held for sale	—	0	0	0
Transfers	0	0	0	0
Disposals	–29	0	–6	–35
Amortization	–200	–2	–33	–235
Impairment1	–29	0	–4	–34
Book value	608	2	56	666
As at Dec. 31, 2025
Cost	1,507	7	112	1,627
Accumulated amortization	–900	–5	–56	–960
Book value	608	2	56	666

1 Impairment also includes necessary reversals of impairment losses.

Lease liabilities

As at the end of the reporting period, lease liabilities amounted to €715 million (PY: €1,141 million). Future cash outflows resulting from leases are shown in the following table:

€ millions	2025	2024
Less than one year	222	324
One to two years	174	275
Two to three years	133	206
Three to four years	92	148
Four to five years	64	94
More than five years	109	177
Total undiscounted lease liabilities	794	1,225
Lease liabilities as at Dec. 31	715	1,141
Current	196	297
Non-current	519	844

In the reporting year, the following amounts were recognized in the income statement:

	2025		2024
€ millions	Continuing operations	Continuing and discontinued operations	Continuing operations	Continuing and discontinued operations
Interest expenses on lease liabilities	21	27	20	31
Expenses relating to short-term leases	14	22	13	27
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	2	3	2	3
Expenses from variable lease payments not included in the measurement of lease liabilities	4	53	4	147
Income from subleasing right-of-use assets	1	4	1	2

In the reporting year, the following amounts were recognized in the statement of cash flows:

	2025		2024
€ millions	Continuing operations	Continuing and discontinued operations	Continuing operations	Continuing and discontinued operations
Cash outflow for leases	263	395	255	525

In addition to cash outflows for the interest and principal portion of recognized lease liabilities, the cash outflow for leases also includes variable lease payments and lease payments for unrecognized leases for low-value assets as well as for short-term leases.

Potential future cash outflows

The leases recognized as at December 31, 2025, include options that were not considered reasonably certain as at the reporting date and are not included in the measurement of lease liabilities. These options may result in potential future cash outflows over the coming fiscal years.

The leases in some cases include variable lease payments as well as extension, termination and purchase options. As a rule, the Continental Group endeavors to include extension and termination options in new leases in order to ensure operational flexibility. For the initial measurement of lease liabilities, such options are recognized once it is reasonably certain that they will be exercised. If a significant event or a significant change in circumstances occurs that is within Continental’s control, this will be taken into account accordingly in the remeasurement of lease liabilities. As at the end of the reporting period, potential future lease payments of €432 million (PY: €678 million) from such options were not included in the measurement of lease liabilities. Potential future cash outflows of €23 million (PY: €77 million) arising from variable lease payments were likewise not included in the measurement of lease liabilities as at the end of the reporting period. The change compared with the previous year is primarily attributable to the spin-off of the former Automotive and Contract Manufacturing segments.

The future scope of obligations arising from leases to which Continental is committed but that had not yet commenced as at the balance sheet date amounted to €10 million (PY: €23 million).

In the reporting year, the expenses for variable lease payments due to contract manufacturing with the Schaeffler Group amounted to €48 million (PY: €138 million). These expenses were incurred up until the spin-off of the former Automotive and Contract Manufacturing segments.

Continental Group as lessor

The Continental Group acts as lessor in some business relationships. In the reporting period, this related exclusively to operating leases in which the Continental Group retains the material risks and rewards incidental to ownership.

Operating leases

Lease income from operating leases in which the Continental Group acts as lessor amounted to €3 million (PY: €4 million); for continuing and discontinued operations it totaled €3 million (PY: €4 million). These related primarily to the (sub)leasing of land and buildings. The income from variable lease payments in the reporting year amounted to €97 million (PY: €244 million); this arose from contract manufacturing with the Schaeffler Group prior to the spin-off of the former Automotive and Contract Manufacturing segments.

Future cash inflows resulting from operating leases as at the end of the reporting period are shown in the following table:

€ millions	2025	2024
Less than one year	1	1
One to two years	1	0
Two to three years	1	0
Three to four years	1	—
Four to five years	1	—
More than five years	—	—
Total undiscounted lease payments	4	1

Finance leases

Since the spin-off of the former Automotive and Contract Manufacturing segments, the Continental Group no longer acts as a lessor of leases that are classified as finance leases.

16. Investments in Equity-Accounted Investees

€ millions	2025	2024
As at Jan. 1	326	299
Additions	24	3
Disposals	–196	25
Changes in the consolidation method, and transfers	—	5
Reclassification to assets held for sale	–21	—
Share of earnings	15	32
Impairment and reversals of impairment losses	—	0
Dividends received	–54	–40
Changes in other comprehensive income	0	–1
Exchange-rate changes	–10	4
As at Dec. 31	83	326

Investments in equity-accounted investees include carrying amounts of joint ventures in the amount of €65 million (PY: €205 million) and of associates in the amount of €18 million (PY: €121 million).

All investments are accounted for using the equity method.

As no finalized data for the current year is available at the end of the given reporting period, the carrying amounts of the investments for the respective periods are initially estimated on the basis of earnings forecast data. Once finalized financial figures are available, the carrying amounts are adjusted in the subsequent period.

For the following material joint venture, the figures taken from the last two available sets of financial statements (2024 and 2023) are summarized as follows. Amounts are stated at 100%. Furthermore, the share of net assets has been reconciled to the respective carrying amount of the investment.

A material joint venture of the Tires segment is MC Projects B.V., Maastricht, Netherlands, plus its subsidiaries. The company, which is jointly controlled by Continental Global Holding Netherlands B.V., Maastricht, Netherlands, and Compagnie Financière Michelin SAS, Clermont-Ferrand, France, each holding 50% of the voting rights, mainly supplies tire-wheel assemblies to automotive manufacturers. Michelin contributed the rights to the Uniroyal brand for Europe to the joint venture. MC Projects B.V. licenses these rights to Continental.

	MC Projects B.V.
€ millions	2024	2023
Dividends received	5	6

Current assets	132	155
thereof cash and cash equivalents	27	38
Non-current assets	111	125
Total assets	243	280

Current liabilities	83	111
thereof short-term financial liabilities	0	0
Non-current liabilities	33	42
thereof long-term financial liabilities	1	1
Total liabilities	117	153

Sales	154	156
Interest income	1	0
Interest expense	1	0
Depreciation and amortization	20	20
Earnings from continuing operations	10	9
Other comprehensive income	–1	–2
Income tax expense	3	4
Earnings after tax	9	7

Net assets	126	127
Share of net assets	63	63

Change in other comprehensive income for the prior year	0	1
Share of earnings for prior years	–3	–1

Carrying amount	60	63

The figures taken from the last two available sets of financial statements (2024 and 2023) for the joint ventures and associates that are not material to the Continental Group are summarized as follows. Amounts are stated in line with the proportion of ownership interest.

	Associates		Joint ventures
€ millions	2024	2023	2024	2023
Earnings from continuing operations	0	1	1	2
Earnings after tax	0	1	1	2

17. Other Investments

€ millions	Dec. 31, 2025	Dec. 31, 2024
Investments in unconsolidated affiliated companies	16	20
Other participations	5	88
Other investments	21	108

Other investments are accounted for at fair value. Changes are recognized in other comprehensive income.

With regard to year-on-year changes in the carrying amount, €0 million (PY: ‑€5 million) resulted from changes in fair value, €0 million (PY: €7 million) from additions, €80 million (PY: €6 million) from disposals mainly in connection with the spin-off of the former Automotive and Contract Manufacturing segments, €3 million (PY: €7 million) from reclassifications and ‑€4 million (PY: €2 million) from exchange-rate effects.

Dividends received from other investments amounted to €3 million in the reporting year (PY: €0 million).

There is currently no intention to sell any of the other investments.

18. Deferred Taxes

Deferred taxes developed as follows:

	Dec. 31, 2025							Dec. 31, 2024
€ millions	Deferred tax assets	Deferred tax liabilities	Net	Recognized in profit or loss	Changes in the scope of consolidation	Reclassification to assets/ liabilities held for sale	Recognized in other comprehensive income	Net
Other intangible assets and goodwill	231	–31	200	42	–313	–14	–35	521
Property, plant and equipment	63	–260	–197	–83	–5	–27	19	–101
Inventories	295	–143	152	61	–197	–1	12	276
Other assets	165	–226	–61	26	–52	–4	–7	–23
Employee benefits less defined benefit assets	181	–20	161	–31	–264	–6	–170	631
Provisions for other risks and obligations	81	–11	70	19	–78	–7	–8	144
Indebtedness and other financial liabilities	258	–26	232	–31	–123	–3	–10	399
Other differences	105	–32	73	–10	43	–2	–4	46
Allowable tax credits	46	—	46	70	–91	–5	–7	79
Tax losses carried forward and limitation of interest deduction	159	—	159	–25	–249	0	–21	454
Deferred taxes (before offsetting)	1,584	–749	835	38	–1,329	–69	–231	2,426
Offsetting (IAS 12.74)	–677	677	—					—
Net deferred taxes	907	–72	835					2,426

	Dec. 31, 2024						Dec. 31, 2023
€ millions	Deferred tax assets	Deferred tax liabilities	Net	Recognized in profit or loss	Changes in the scope of consolidation	Recognized in other comprehensive income	Net
Other intangible assets and goodwill	919	–398	521	210	–5	–14	331
Property, plant and equipment	255	–356	–101	29	1	–25	–107
inventories	430	–154	276	39	–1	–11	250
Other assets	243	–266	–23	9	1	–1	–32
Employee benefits less defined benefit assets	662	–31	631	14	–2	–56	675
Provisions for other risks and obligations	159	–15	144	–28	0	–1	174
Indebtedness and other financial liabilities	429	–30	399	–31	0	–3	434
Other differences	214	–168	46	–37	–3	–4	91
Allowable tax credits	79	—	79	–10	—	11	78
Tax losses carried forward and limitation of interest deduction	454	—	454	–78	–7	–9	548
Deferred taxes (before offsetting)	3,844	–1,418	2,426	117	–16	–113	2,440
Offsetting (IAS 12.74)	–1,321	1,321	—				—
Net deferred taxes	2,523	–97	2,426				2,440

Deferred taxes are measured in accordance with IAS 12, Income Taxes, at the tax rate applicable for the periods in which they are expected to be realized. Since 2008, there has been a limit on the deductible interest that can be carried forward in Germany; the amount deductible under tax law is limited to 30% of taxable income before depreciation, amortization and interest.

In the reporting year, the development of deferred taxes was influenced in particular by the spin-off of the former Automotive and Contract Manufacturing segments.

Deferred tax assets were down €1,616 million at €907 million (PY: €2,523 million).

Deferred tax liabilities decreased by €25 million year-on-year to €72 million (PY: €97 million).

As at December 31, 2025, the consolidated tax losses carried forward in Germany and abroad amounted to €3,356 million (PY: €6,027 million). The majority of the Continental Group’s tax losses carried forward relate to subsidiaries in Germany and are largely unlimited in terms of the time period for which they can be carried forward.

Deferred tax assets were not recognized in relation to the following items because it is currently not deemed sufficiently likely that they will be utilized:

€ millions	Dec. 31, 2025	Dec. 31, 2024
Temporary differences	155	296
Tax losses carried forward and limitation of interest deduction	2,020	3,655
Allowable tax credits	190	435
Total of all items for which no deferred tax assets were recognized	2,365	4,386

Of the deferred tax assets deemed unusable, tax losses carried forward and limitation of interest deduction of €1,628 million (PY: €2,836 million) can be used indefinitely, €376 million (PY: €763 million) expire within the next 10 years and €16 million (PY: €56 million) expire in more than 10 years. Of the deferred tax assets on allowable tax credits deemed unusable, €190 million (PY: €268 million) can be used indefinitely, €0 million (PY: €105 million) expire within the next 10 years and €0 million (PY: €62 million) expire in more than 10 years. Deferred tax assets arising from temporary differences can be used indefinitely.

As at December 31, 2025, some Continental Group companies and tax groups that reported a loss in the current or previous year recognized total deferred tax assets of €747 million (PY: €1,071 million), which arose from current losses, tax losses carried forward and a surplus of deferred tax assets. In the year under review, the Continental Group changed the methodology used to determine the reference metric “loss.” The basis is now taxable income. The comparative period was adjusted accordingly.

Given that future taxable income is expected, it is sufficiently probable that these deferred tax assets can be realized. This is to be achieved in particular through the expansion of production capacities in high-growth regions, portfolio optimization, ongoing efficiency gains and strict cost discipline in the Tires segment, the continued strategic focus on industrial business in the ContiTech segment and the use of tax planning opportunities.

The temporary differences from retained earnings of foreign companies amounted to a total of €936 million (PY: €965 million). Deferred tax liabilities were not taken into account, since remittance to the parent company is not planned in the short or medium term.

19. Other Financial Assets

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Amounts receivable from related parties	—	—	1	—
Loans to third parties	—	47	—	113
Amounts receivable from employees	20	—	21	—
Other amounts receivable	48	3	107	139
Other financial assets	68	50	128	252

Amounts receivable from related parties related primarily to loans to associates.

Loans to third parties related mainly to loans to customers and suppliers with various maturities.

Amounts receivable from employees related mainly to preliminary payments for hourly wages and for other advances.

In particular, other amounts receivable include amounts receivable from suppliers and customers. The carrying amounts of the other financial assets are essentially their fair values.

Please see Note 31 for information on the default risks in relation to other financial assets.

20. Other Assets

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Trade accounts receivable from the sale of customer tools	1	—	106	—
Tax refund claims (incl. VAT and other taxes)	195	—	391	—
Prepaid expenses	113	—	291	—
Other	173	6	288	19
Other assets	481	6	1,077	19

The tax refund claims primarily resulted from VAT receivables from the purchase of production materials. The trade accounts receivable from the sale of customer tools related to costs that have not yet been invoiced.

In particular, prepaid expenses include license fees as well as rent and maintenance services paid for in advance.

Among other things, the “Other” item includes recoverable duties paid, debit balances in accounts payable and other advanced costs.

Impairment totaling €1 million (PY: €3 million) was recognized for the probable default risk on other assets.

21. Inventories

€ millions	Dec. 31, 2025	Dec. 31, 2024
Raw materials and supplies	797	2,493
Work in progress	283	723
Finished goods and merchandise	1,987	2,897
Inventories	3,067	6,113

Write-downs recognized on inventories decreased by €442 million to €212 million (PY: €654 million). The change in write-downs and the reduction in inventories compared with the previous year are primarily attributable to the spin-off of the former Automotive and Contract Manufacturing segments.

For continuing operations, reversals were made in the amount of €1 million (PY: €1 million), while the amount for inventories recognized as expenses was €13,634 million (PY: €14,020 million).

22. Trade Accounts Receivable

€ millions	Dec. 31, 2025	Dec. 31, 2024
Trade accounts receivable	3,313	7,237
Loss allowances	–84	–133
Trade accounts receivable	3,228	7,104

The carrying amounts of the trade accounts receivable, net of loss allowances, are their fair values. Please see Note 31 for information on the default risks in relation to trade accounts receivable.

The Continental Group uses several programs for the sale of receivables. When the risks and rewards of receivables, in particular credit and default risks, have mostly not been transferred, the receivables are still recognized as assets in the statement of financial position. Under the existing sale-of-receivables programs, the contractual rights to the receipt of payment inflows have been assigned to the corresponding contractual parties.

The transferred receivables have short remaining terms. As a rule, therefore, the carrying amounts as at the reporting date in the amount of €380 million (PY: €548 million) are approximately equivalent to their fair value. The respective liabilities with a carrying amount of €238 million (PY: €299 million) represent the liquidation proceeds from the sale of the receivables. As in the previous year, this was approximately equivalent to their fair value. The committed financing volume under these sale-of-receivables programs amounts to €350 million (PY: €400 million).

23. Cash and Cash Equivalents

Cash and cash equivalents include all liquid funds and demand deposits. Cash equivalents are short-term, highly liquid financial investments that can be readily converted into known cash amounts and are subject to an insignificant risk of changes in value. As at the reporting date, cash and cash equivalents amounted to €1,503 million (PY: €2,966 million).

Of that, €1,424 million (PY: €2,720 million) was unrestricted.

For information on the interest-rate risk and the sensitivity analysis for financial assets and liabilities, please see Note 31.

24. Assets Held for Sale

€ millions	Dec. 31, 2025	Dec. 31, 2024
Individual assets held for sale	7	—
Assets of a disposal group	774	—
Assets held for sale	782	—

Individual assets held for sale include €7 million in assets in the form of production machinery belonging to the Tires segment. In the former Automotive segment, assets from property, plant and equipment totaling €38 million were reclassified to assets held for sale in the reporting year; these assets were disposed of as part of the spin-off. Please see Note 6.

On August 27, 2025, Continental also announced the signing of the agreement to sell the OESL disposal group within the ContiTech segment. The cumulative amounts of the OESL disposal group recognized in other comprehensive income as at December 31, 2025, totaling €73 million are mainly due to currency translation.

The assets of the OESL disposal group are broken down as follows:

€ millions	Dec. 31, 2025
Deferred tax assets	75
inventories	195
Trade accounts receivable	244
Cash and cash equivalents	124
Other assets	137
Assets held for sale	774

25. Equity

The subscribed capital of Continental AG remained unchanged year-on-year. At the end of the reporting period it amounted to €512,015,316.48 and was composed of 200,005,983 no-par-value shares with a notional value of €2.56 per share.

One share was transferred to Continental AG without consideration in the fiscal year. This share had been resold as at the reporting date. The share had a notional value of €2.56.

Under the German Stock Corporation Act (Aktiengesetz – AktG), the dividends distributable to the shareholders are based solely on Continental AG’s retained earnings as at December 31, 2025, of €4,437 million (PY: €5,317 million), as reported in the annual financial statements prepared in accordance with the German Commercial Code. The retained earnings are mainly attributable to the merger of Continental Automotive GmbH, Hanover, into Continental AG in preparation for the spin-off. This took retroactive economic effect as of January 1, 2025, and with recognition of hidden reserves and liabilities. The Supervisory Board and Executive Board will propose to the Annual Shareholders’ Meeting the payment of a dividend of €2.70 per share entitled to dividends. The total distribution is therefore €540,016,154.10 for 200,005,983 shares entitled to dividends. The remaining retained earnings are to be carried forward to new account.

Non-controlling interests

The compiled financial information of fully consolidated subsidiaries with material non-controlling interests corresponds to the values prior to the implementation of consolidation measures:

Non-controlling interests

	Phoenix Shanxi Conveyor Belt Co., Ltd.		Benecke Changshun Auto Trim (Zhangjiagang) Co., Ltd.		ContiTech (Shandong) Engineered Rubber Products Co., Ltd.
€ millions	2025	2024	2025	2024	2025	2024

Capital share of non-controlling interests in %	48.0	48.0	49.0	49.0	40.0	40.0

Current assets	20	42	88	112	217	225
Non-current assets	4	4	15	15	90	102
Total assets	24	46	103	127	307	326

Current liabilities	6	20	31	34	55	61
Non-current liabilities	1	1	3	0	2	3
Total liabilities	6	21	35	34	58	65

Net assets	18	25	69	93	250	261
Attributable to non-controlling interests	8	12	34	46	100	105

Sales	6	10	97	111	175	209
Earnings after tax	–5	–3	11	18	7	17
Attributable to non-controlling interests	–3	–1	6	9	3	7

Dividends to minority shareholders	0	5	14	8	—	—

Cash flow before financing activities (free cash flow)	–6	–3	8	18	9	20

26. Capital Management

The aim of the Continental Group is to maintain a strong capital base in order to preserve the trust of the capital market, customers and employees and to ensure the sustainable development of the company. To assess achievement of these goals, the Continental Group uses the equity ratio (defined as equity reported in the statement of financial position, including non-controlling interests, divided by total assets) and the leverage ratio as key figures. The leverage ratio is defined as the ratio of net indebtedness (corresponding to the amount of interest-bearing financial liabilities, the fair values of derivative instruments, cash and cash equivalents, and other interest-bearing investments) to EBITDA (calculated as the sum of EBIT reported in the income statement and the depreciation of property, plant and equipment and amortization of intangible assets, excluding impairment on financial investments, and impairment) over the past 12 months. The leverage ratio has been reported in place of the gearing ratio as a new key figure for assessing the financing structure since mid-2025, since it reflects the relationship between debt and profitability, making it a more suitable performance indicator in Continental’s opinion. The leverage ratio is also considered to be more relevant in capital market communication. As a general rule, the leverage ratio over the medium term should be less than or equal to one. If justified by extraordinary financing reasons or specific market circumstances, we can rise above this ratio under certain conditions. The equity ratio over the medium term should exceed 30%. The overall strategy of the Continental Group remained unchanged from the previous year. The Continental Group is not subject to any externally imposed capital requirements, and its main loan agreements do not currently contain any financial covenants.

The above key figures and parameters as at the reporting date were as follows:

€ millions	Dec. 31, 2025	Dec. 31, 2024
Total equity	4,158	14,798
Total assets	17,792	36,966
Equity ratio in %	23.4	40.0
Long-term indebtedness	4,751	4,112
Short-term indebtedness	2,075	2,797
Long-term derivative instruments and interest-bearing investments	–31	–81
Short-term derivative instruments and interest-bearing investments	–138	–151
Cash and cash equivalents	–1,503	–2,966
Net indebtedness	5,154	3,712
EBITDA	1,858	3,154
Leverage ratio1	2.8	—

1 In the reporting year, the leverage ratio was reported in place of the gearing ratio as a new key figure for assessing the financing structure. In the previous year, the gearing ratio for continuing and discontinued operations was 25.1%.

27. Employee Benefits

The following table outlines the employee benefits:

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Pension provisions (unfunded obligations and net liabilities from obligations and related funds)	—	932	—	2,654
Provisions for other post-employment benefits	—	75	—	123
Provisions for similar obligations	2	38	2	54
Other employee benefits	—	148	—	267
Liabilities for workers’ compensation	20	21	32	17
Liabilities for payroll and personnel-related costs	443	—	898	—
Termination benefits	34	—	51	—
Liabilities for social security	91	—	193	—
Liabilities for vacation	93	—	205	—
Employee benefits	683	1,214	1,380	3,116
Defined benefit assets (difference between pension obligations and related funds)	n.a.	65	n.a.	114

Long-term employee benefits

Pension plans

In addition to statutory pension insurance, the majority of employees are also entitled to defined benefit or defined contribution plans after the end of their employment.

Our pension strategy is focused on switching from defined benefit to defined contribution plans in order to offer both employees and the company a sustainable and readily understandable pension system.

Many defined benefit plans have been closed for new employees or future service and replaced by defined contribution plans.

In countries in which defined contribution plans are not possible for legal or economic reasons, defined benefit plans have been optimized or changed to minimize the associated risks of longevity, inflation and salary increases.

Defined benefit plans

Defined benefit plans include pension plans, termination indemnities regardless of the reason for the end of employment and other post-employment benefits.

Following the spin-off, the pension plans for the affected employees of the former Automotive and Contract Manufacturing segments were separated and will be continued independently by Aumovio in the future. This resulted in a significant reduction in the pension obligations remaining at Continental.

These pension obligations essentially relate to active employees. The defined benefit pension plans cover 73,708 beneficiaries, including 42,843 active employees, 14,648 former employees with vested benefits and 16,217 retirees and surviving dependents. The pension obligations are concentrated in four countries: Germany, the USA, the United Kingdom and Canada, which account for more than 90% of total pension obligations.

The weighted average term of the defined benefit pension obligations is around nine years. This term is based on the present value of the obligations.

Germany

In Germany, Continental provides pension benefits through the cash balance plan, prior commitments and deferred compensation.

The retirement plan regulation applicable to active members is based primarily on the cash balance plan and thus on benefit modules. When the insured event occurs, the retirement plan assets are paid out as a lump-sum benefit, in installments or as a pension, depending on the amount of the retirement plan assets. There are no material minimum guarantees in relation to a particular amount of retirement benefits.

As part of the spin-off of the former Automotive and Contract Manufacturing segments, the pension obligations of the affected companies transferred to Aumovio.

Pension plans transferred to or assumed by Continental in the context of acquisitions (Phoenix) were included in the cash balance plan. For the German companies Continental AG and Continental Reifen Deutschland GmbH, the cash balance plan is partly covered by funds in contractual trust arrangements (CTAs). In Germany, there are no legal or regulatory minimum funding requirements.

The CTAs are legally independent from the company and manage the plan assets as trustees in accordance with the respective CTAs.

Some prior commitments were granted through two legally independent pension contribution funds. Pensionskasse für Angestellte der Continental Aktiengesellschaft VVaG and Pensionskasse von 1925 der Phoenix AG VVaG have been closed since March 1, 1984, and July 1, 1983, respectively. The pension contribution funds are smaller associations within the meaning of Section 53 of the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) and are subject to the supervision of the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). The investment regulations are in accordance with the legal requirements and risk structure of the obligations. The pension contribution funds have tariffs with an interest rate of 2.5% or 2.25%. Under the German Company Pensions Law (Betriebsrentengesetz – BetrAVG), Continental is ultimately liable for the implementation path of the pension contribution fund. In accordance with IAS 19, Employee Benefits, the pension obligations covered by the pension contribution fund are therefore defined benefit pension plans. The pension contribution funds met their minimum net funding requirement as at December 31, 2025. However, given that only the plan members are entitled to the assets and amounts generated, the benefit obligations are recognized in the same amount as the existing assets at fair value.

Continental also supports private contribution through deferred compensation schemes.

Deferred compensation is essentially offered through a fully funded multi-employer plan (Höchster Pensionskasse VVaG) for contributions up to 4% of the assessment ceiling in social security. The pension contribution fund ensures guaranteed minimum interest for which Continental is ultimately liable under the German Company Pensions Law. The company is not liable for guarantees to employees of other companies. As Höchster Pensionskasse VVaG is a combined defined benefit plan for several companies and Continental has no right to the information required for accounting for this defined benefit plan, this plan is recognized as a defined contribution plan.

Entitled employees can use the cash balance plan for deferred compensation contributions above the 4% assessment ceiling. This share is funded by insurance annuity contracts.

USA

Owing to its acquisition history, Continental has various defined benefit plans in the USA, which were closed to new entrants and frozen to accretion of further benefits in a period from April 1, 2005, to December 31, 2011. In 2017, acquisitions also included an open defined benefit plan for unionized employees of the ContiTech segment.

The closed defined benefit plans are commitments on the basis of the average final salary and cash balance commitments. The defined benefit plans for unionized and non-unionized employees are based on a pension multiplier per year of service.

Closed defined benefit plans were replaced by defined contribution plans. Defined contribution plans apply to the majority of active employees in the USA.

The plan assets of the defined benefit plans are managed in a master trust. Investment supervision was delegated to the Pension Committee, a body appointed within the Continental Group. The legal and regulatory framework for the plans is based on the US Employee Retirement Income Security Act (ERISA).

The valuation of the financing level is required on the basis of this law. The interest rate used for this calculation is the average rate over a period of 25 years and therefore currently higher than the interest rate used to discount obligations under IAS 19. The statutory valuation therefore gives rise to a lower obligation than that in line with IAS 19. There is a regulatory requirement to ensure minimum funding of 80% in the defined benefit plans to prevent benefit curtailments.

United Kingdom

As part of the spin-off of the former Automotive and Contract Manufacturing segments, two defined benefit plans transferred to Aumovio. Continental maintains two defined benefit plans as a result of its history of acquisitions in the United Kingdom. All plans are commitments on the basis of the average or final salary. The two plans were closed to new employees in the period between April 1, 2002, and November 30, 2004. Continental offers defined contribution plans for all employees who have joined the company since that time.

As at April 5, 2016, the Continental Group Pension and Life Assurance Scheme was frozen to accretion of further benefits. It was replaced by a defined contribution plan as at April 6, 2016.

Our pension strategy in the UK focuses on reducing risks and includes the option of partial or complete funding by purchasing annuities.

The funding conditions are defined by the UK Pensions Regulator and the corresponding laws and regulations. The defined benefit plans are managed by trust companies. The boards of trustees of these companies have an obligation solely to the good of the beneficiaries on the basis of the trust agreement and the law.

The necessary funding is determined every three years through technical valuations in line with local provisions. The obligations are measured using a discount rate based on government bonds and other conservatively selected actuarial assumptions.

Compared with IAS 19, which derives the discount rate from senior corporate bonds, this usually results in a higher obligation. One of the two defined benefit plans had a funding deficit on the basis of the most recent technical valuation. The trustees and the company have agreed on a recovery plan that provides for additional temporary annual payments. The valuation process must be completed within 15 months of the valuation date.

The most recent technical valuations of the defined benefit pension plans led to the following result:

Continental Group Pension and Life Assurance Scheme: An agreement was concluded with an insurer in 2019 for a complete buy-out through the acquisition of annuities. The necessary data clarifications progressed in 2025 but have not yet been finalized. Completion is now expected in 2026.
Phoenix Dunlop Oil & Marine Pension Scheme (assessment as at December 31, 2021): As part of the assessment, an agreement was resolved on a minimum annual endowment of GBP 1.5 million and an annual adjustment of 3.5% over a period from April 1, 2023, to March 2028.

Canada

The ContiTech segment maintains a defined benefit plan as a result of its history of acquisitions. The benefits comprise various components (including on the basis of a pension multiplier per year of service).

Fluctuations in the amount of the pension obligation resulting from exchange-rate effects are subject to the same risks as overall business development. These fluctuations relate mainly to the currencies of the USA, Canada and the UK and have no material impact on Continental. For information on the effects of interest-rate risks and longevity risk on the pension obligations, please refer to the sensitivities described later on in this note.

The pension obligations for Germany, the USA, Canada, the UK and other countries, as well as the amounts for Continental as a whole, are shown in the following tables.

The reconciliation of the changes in the defined benefit obligations from the beginning to the end of the year is as follows:

	2025						2024
€ millions	Germany	USA	Canada	UK	Other	Total	Germany	USA	Canada	UK	Other	Total
Defined benefit obligations as at Jan. 1	4,165	835	37	254	341	5,632	4,191	836	35	265	319	5,646
Exchange-rate differences	—	–94	–3	–13	–8	–117	—	50	–1	12	–14	47
Current service cost	91	2	1	1	19	114	117	2	1	1	22	143
Service cost from plan amendments	—	—	—	—	0	0	—	0	—	—	0	0
Curtailments/settlements	—	—	—	—	–3	–3	—	—	—	—	–7	–7
Interest on defined benefit obligations	115	38	2	12	16	182	126	42	2	12	19	201
Actuarial gains/losses from changes in demographic assumptions	—	—	—	1	0	1	—	—	—	1	1	3
Actuarial gains/losses from changes in financial assumptions	–439	14	–1	–9	–5	–440	–206	–32	0	–24	13	–248
Actuarial gains/losses from experience adjustments	4	–6	0	2	5	5	64	2	2	0	3	70
Net changes in the scope of consolidation	–2,296	–194	—	–102	–156	–2,748	—	—	—	—	0	0
Reclassification to liabilities held for sale	–145	–25	—	—	–18	–188	—	—	—	—	—	—
Employee contributions	—	—	0	0	0	1	—	—	0	0	0	1
Other changes	1	—	—	—	0	1	2	—	—	—	12	14
Benefit payments	–116	–59	–2	–12	–24	–213	–129	–66	–2	–14	–27	–238
Defined benefit obligations as at Dec. 31	1,381	509	35	133	168	2,226	4,165	835	37	254	341	5,632

The reconciliation of the changes in the fund assets from the beginning to the end of the year is as follows:

	2025						2024
€ millions	Germany	USA	Canada	UK	Other	Total	Germany	USA	Canada	UK	Other	Total
Fair value of fund assets as at Jan. 1	1,747	863	38	305	139	3,092	1,735	855	36	312	129	3,065
Exchange-rate differences	—	–98	–3	–15	–5	–121	—	52	–1	14	–5	60
Interest income from pension funds	47	39	2	14	5	107	57	43	2	15	7	125
Actuarial gains/losses from fund assets	–4	24	0	–10	3	14	30	–28	2	–28	–4	–27
Employer contributions	12	5	1	5	13	36	9	8	1	6	15	39
Employee contributions	—	—	0	0	0	1	—	—	0	0	0	1
Net changes in the scope of consolidation	–1,189	–203	—	–140	–103	–1,636	—	—	—	—	—	0
Reclassification to liabilities held for sale	–8	–22	—	—	–3	–33	—	—	—	—	—	—
Other changes	2	–1	0	–1	0	0	0	—	0	0	10	9
Benefit payments	–18	–59	–2	–12	–8	–101	–84	–66	–2	–14	–13	–179
Fair value of fund assets as at Dec. 31	589	547	37	146	41	1,360	1,747	863	38	305	139	3,092

The carrying amount consisting of the defined benefit assets and the pension provisions decreased by €1,674 million compared with the previous year, mainly due to the spin-off of the former Automotive and Contract Manufacturing segments.

The defined benefit assets fell by €49 million year-on-year, mainly due to the spin-off of the Automotive companies in the United Kingdom.

€2,140 million (PY: €5,528 million) of the defined benefit obligations as at December 31, 2025, related to plans that are fully or partially funded, and €65 million (PY: €104 million) related to plans that are unfunded.

The €3,406 million decrease in defined benefit obligations compared with December 31, 2024, resulted primarily from the spin-off of the former Automotive and Contract Manufacturing segments and from the transfer of liabilities of the OESL disposal group to liabilities held for sale.

The fund assets in Germany include the CTA assets amounting to €316 million (PY: €1,428 million), pension contribution fund assets of €160 million (PY: €169 million) and insurance annuity contracts amounting to €100 million (PY: €150 million).

Fund assets decreased by €1,732 million in the reporting year to €1,360 million following the spin-off of the former Automotive and Contract Manufacturing segments.

Actuarial gains and losses on fund assets in Germany resulted primarily from actuarial losses of €2 million from CTAs (PY: actuarial gains of €30 million).

In the Continental Group, there are pension contribution funds for previously defined contributions in Germany that have been closed to new entrants since July 1, 1983, and March 1, 1984, respectively. As at December 31, 2025, the minimum net funding requirement was exceeded; Continental AG has no requirement to make additional contributions. The pension fund assets had a fair value of €160 million as at December 31, 2025 (PY: €169 million). The pension contribution funds have tariffs with an interest rate of 2.5% or 2.25%. Under the German Company Pensions Law, Continental AG is ultimately liable for the implementation path of the pension contribution fund. It therefore constitutes a defined benefit pension plan that must be reported in line with the development of pension provisions. However, given that only the plan members are entitled to the assets and income generated, the benefit obligations are recognized in the same amount as the existing assets at fair value.

The following table shows the reconciliation of the funded status to the amounts contained in the statement of financial position:

	Dec. 31, 2025						Dec. 31, 2024
€ millions	Germany	USA	Canada	UK	Other	Total	Germany	USA	Canada	UK	Other	Total
Funded status1	–792	38	2	12	–127	–867	–2,418	28	1	51	–202	–2,540
Asset ceiling	—	—	—	—	0	0	—	—	—	—	–1	–1
Carrying amount	–792	38	2	12	–127	–867	–2,418	28	1	51	–203	–2,541

1 Difference between fund assets and defined benefit obligations.

The carrying amount comprises the following items of the statement of financial position:

Dec. 31, 2025

Dec. 31, 2024

€ millions

Germany

USA

Canada

Other

Total

Germany

USA

Canada

Other

Total

Defined benefit assets

—

114

Pension provisions

–793

–2

–6

–128

–932

–2,418

–17

–2

–7

–211

–2,654

Carrying amount

–792

–127

–867

–2,418

–203

–2,541

The assumptions used to measure the pension obligations – in particular, the discount rates for determining the interest on defined pension obligations and the expected return on fund assets, as well as the long-term salary growth rates and the long-term pension trend – are specified for each country.

In the principal pension plans, the following weighted-average valuation factors as at December 31 of the year have been used:

	2025					2024
%	Germany1	USA	Canada	UK	Other	Germany1	USA	Canada	UK	Other
Discount rate	4.29	5.34	4.90	5.55	6.42	3.45	5.60	4.65	5.54	5.82
Long-term salary growth rate	3.00	0.00	3.00	1.13	3.52	3.00	0.00	3.00	1.25	4.18

1 Not including the pension contribution funds.

Another parameter for measuring the pension obligation is the long-term pension trend. The following weighted average long-term pension trend was used as at December 31, 2025, for the key countries: Germany 2.2% (PY: 2.2%), Canada 0.0% (PY: 0.0%) and the United Kingdom 3.1% (PY: 3.4%). For the USA, the long-term pension trend does not constitute a significant measurement parameter.

Net pension cost can be summarized as follows:

	2025							2024
€ millions	Germany	USA	Canada	UK	Other	Continuing operations	Continuing and discontinued operations	Germany	USA	Canada	UK	Other	Continuing operations	Continuing and discontinued operations
Current service cost	49	2	1	0	10	61	114	51	2	1	1	10	65	143
Service cost from plan amendments	0	—	—	—	0	0	0	—	0	—	—	0	0	0
Curtailments/settlements	0	—	—	—	–1	–1	–3	—	—	—	—	0	0	–7
Interest on defined benefit obligations	53	30	2	7	10	102	182	47	31	2	7	10	97	201
Expected return on the pension funds	–19	–31	–2	–8	–2	–62	–107	–21	–32	–2	–8	–2	–65	–125
Effect of change of asset ceiling	0	—	—	—	0	0	0	—	—	—	—	0	0	0
Other pension income and expenses	0	1	0	0	0	2	1	—	1	0	-	0	1	0
Net pension cost	83	1	1	0	17	102	187	77	2	1	0	18	98	213

The table below shows the changes in actuarial gains and losses that are reported directly in equity:

	2025							2024
€ millions	Germany	USA	Canada	UK	Other	Continuing operations	Continuing and discontinued operations	Germany	USA	Canada	UK	Other	Continuing operations	Continuing and discontinued operations
Actuarial gains/losses from defined benefit obligations	–169	6	–1	1	3	–161	–435	–34	–22	2	–13	6	–61	–175
Actuarial gains/losses from fund assets	7	–20	0	4	1	–9	–14	–7	19	–2	16	3	29	27
Actuarial gains/losses from asset ceiling	—	—	—	—	0	0	0	—	—	—	—	0	0	0
Actuarial gains/losses	–163	–15	–1	4	4	–170	–449	–41	–3	0	3	8	–33	–150

Actuarial gains and losses arise from increases or decreases in the present value of the defined benefit obligation due to changes in the actuarial assumptions made. The increase in the discount rate in all countries in the 2025 reporting period compared with 2024 resulted in actuarial gains in all countries. The actuarial gains in the previous fiscal year likewise resulted from a rise in interest rates compared with the prior year.

If the other assumptions remained constant, the changes in individual key actuarial assumptions that could reasonably have been possible at the reporting date would have impacted the defined benefit obligation by the following amounts. Although the analysis does not take account of the complete allocation of the cash flows expected under the plan, it provides an approximation of the sensitivity of the assumptions shown.

If the other assumptions are maintained, a 0.5-percentage-point increase or decrease in the discount rate used to discount pension obligations would have had the following impact on the pension obligations as at the end of the reporting period:

	Dec. 31, 2025					Dec. 31, 2024
€ millions	Germany1	USA	Canada	UK	Other	Germany1	USA	Canada	UK	Other
0.5%-point increase
Effects on service and interest cost	–2	–2	0	—	0	–5	–2	0	0	0
Effects on benefit obligations	–229	–21	–2	–7	–7	–304	–34	–3	–14	–14
0.5%-point decrease
Effects on service and interest cost	2	1	0	0	0	6	2	0	–1	0
Effects on benefit obligations	259	23	3	8	8	347	37	3	15	15

1 Not including the pension contribution funds.

A 0.5-percentage-point increase or decrease in the long-term salary growth rate would have had the following impact on the pension obligations as at the end of the reporting period:

	Dec. 31, 2025				Dec. 31, 2024
€ millions	Germany	USA1	Canada	UK	Germany	USA1	Canada	UK
0.5%-point increase
Effects on benefit obligations	1	—	0	0	1	—	0	1
0.5%-point decrease
Effects on benefit obligations	–1	—	0	0	–1	—	0	–1

1 Any change in the long-term salary growth rate would have no effect on the value of the benefit obligations.

A 0.5-percentage-point increase or decrease in the long-term pension trend would have had the following impact on the pension obligations as at the end of the reporting period:

	Dec. 31, 2025				Dec. 31, 2024
€ millions	Germany	USA1	Canada	UK	Germany	USA1	Canada	UK
0.5%-point increase
Effects on benefit obligations	94	—	—	4	119	—	—	10
0.5%-point decrease
Effects on benefit obligations	–86	—	—	–4	–111	—	—	–10

1 Any change in the long-term pension trend would have no effect on the value of the benefit obligations.

Changes in the discount rate and the salary and pension trends do not have a linear effect on the defined benefit obligations owing to the financial models used (particularly due to the compounding of interest rates). For this reason, the net periodic pension cost derived from the pension obligations does not change by the same amount as a result of an increase or decrease in the actuarial assumptions.

The change to the process for determining discount rates, implemented as at July 31, 2025, led to the use of higher discount rates as at December 31, 2025. Applying the previous process for determining discount rates would have resulted in a further increase in long-term employee benefits of €58 million as at December 31, 2025. Without this change, the discount rate in Germany would have been 4.02%.

In addition to the aforementioned sensitivities, the impact of a one-year-longer life expectancy on defined benefit obligations was computed for the key countries. A one-year increase in life expectancy would lead to a €123 million (PY: €166 million) increase in defined benefit obligations, and that figure would be broken down as follows: Germany €103 million (PY: €133 million), USA €16 million (PY: €24 million), United Kingdom €3 million (PY: €8 million) and Canada €1 million (PY: €1 million). In Germany, increased payments in the form of pensions rather than capital were assumed in the actuarial valuation, which has the effect of increasing the defined benefit obligations. For the calculation of pension obligations for domestic plans, life expectancy is based on the 2018 G mortality tables by Prof. Klaus Heubeck. For foreign pension plans, comparable criteria are used for the respective country.

Plan assets

The structure of the Continental Group’s plan assets is reviewed by the investment committees on an ongoing basis taking into account the forecast pension obligations. In doing so, the investment committees regularly review the investment decisions taken, the underlying expected returns of the individual asset classes reflecting empirical values and the selection of the external fund managers.

The portfolio structures of the pension funds at the measurement date for the fiscal years 2025 and 2024 are as follows:

%	2025					2024
Asset class	Germany1	USA	Canada	UK	Other	Germany1	USA	Canada	UK	Other
Equity instruments	13	—	100	—	11	9	2	55	2	8
Debt securities	83	98	—	42	16	66	96	43	51	41
Real estate	—	—	—	—	—	8	—	—	0	2
Absolute return2	—	—	—	—	—	5	—	2	1	—
Cash, cash equivalents and other	4	2	—	3	5	12	2	—	13	21
Annuities3	—	—	—	55	68	—	—	—	33	28
Total	100	100	100	100	100	100	100	100	100	100

1 The portfolio structure of the fund assets in Germany excludes the pension contribution funds whose assets are invested mainly in debt securities and equity instruments.
2 This refers to investment products that aim to achieve a positive return regardless of market fluctuations.
3 Annuities are insurance contracts that guarantee pension payments.

The following table shows the cash contributions made by the company to the pension funds for 2025 and 2024 as well as the expected contributions for 2026 for continuing operations:

€ millions	2026 (expected)	2025	2024
Germany	—	12	5
USA	4	4	7
Canada	1	1	1
UK	0	3	2
Other	12	7	6
Total1	17	28	22

1 Contributions made by continuing and discontinued operations in the reporting period totaled €36 million (PY: €39 million).

The following overview shows the benefits paid in the reporting year and the previous year, as well as the undiscounted, expected benefit payments of continuing operations for the next 10 years:

€ millions	Germany	USA	Canada	UK	Other	Total1
Benefits paid
2024	62	51	1	7	15	135
2025	64	48	1	7	14	134
Expected benefit payments
2026	83	48	2	8	11	152
2027	74	47	2	8	13	144
2028	77	47	3	8	13	147
2029	78	46	3	9	16	151
2030	81	45	3	9	15	154
Total of years 2031 to 2035	416	208	13	47	106	790

1 Benefits paid by continuing and discontinued operations in the reporting period totaled €213 million (PY: €237 million).

The benefit payments from 2024 onward relate to lump sums in connection with cash balance plans, as well as annual pension payments. Furthermore, the earliest eligible date for retirement has been assumed when determining future pension payments. The

actual retirement date could occur later. Therefore, the actual payments in future years for present plan members could be lower than the amounts assumed.

For the current and four preceding reporting periods, the amounts of the defined benefit obligations, fund assets, funded status, as well as the remeasurement of plan liabilities and plan assets are as follows:

€ millions	2025	2024	2023	2022	2021
Defined benefit obligations	2,226	5,632	5,646	5,170	7,249
Fund assets	1,360	3,092	3,066	3,064	3,064
Funded status	–867	–2,540	–2,580	–2,106	–4,184
Remeasurement of plan liabilities	–435	–175	389	–2,254	–696
Remeasurement of plan assets	14	–27	54	–510	–2

Obligations similar to pensions

Some companies of the Continental Group have made commitments to employees for a fixed percentage of the employees’ compensation. These entitlements are paid out when the employment relationship is terminated. In the year under review, expenses from these obligations for continuing operations amounted to €2 million (PY: €14 million). Expenses for continuing and discontinued operations in the reporting period amounted to €3 million (PY: €15 million).

Defined contribution pension plans

The Continental Group offers its employees pension plans in the form of defined contribution plans, particularly in the USA, the UK, Japan and China. Not including social security contributions, expenses from defined contribution pension plans for continuing operations amounted to €48 million in the fiscal year (PY: €45 million). Expenses for continuing and discontinued operations in the reporting period amounted to €70 million (PY: €76 million).

Other employee benefits

Other employee benefits include provisions for partial early retirement programs and anniversary and other long-service benefits. Provisions for partial early retirement are calculated using a discount rate of 2.39% (PY: 2.75%). Provisions for anniversary and other long-service benefits are calculated using a discount rate of 3.97% (PY: 3.34%). In accordance with the option under IAS 19, Employee Benefits, the interest component is reported in the financial result.

Variable remuneration elements

Liabilities for payroll and personnel-related costs also include variable components based on performance. The variable components based on performance comprise a short-term remuneration component (performance bonus without equity deferral) as well as long-term remuneration components (long-term incentive and equity deferral of the performance bonus).

The LTI plans are classified as cash-settled share-based payments; hence they are recognized at fair value in accordance with IFRS 2, Share-based Payment. The equity deferral of the performance bonus of the remuneration system applicable from 2020 is classified as an equity-settled share-based payment; hence it is recognized at fair value in accordance with IFRS 2, Share-based Payment.

Long-term incentive plans (LTI plans)

Expenses of €58 million (PY: €27 million) from the addition of provisions for the 2021 to 2025 LTI plan relating to continuing and discontinued operations were recognized in the respective function costs.

2020 to 2023 LTI plan: From 2020, a new LTI plan was granted to the Executive Board, senior executives and executives that aims to promote long-term commitment to the company and its sustainable growth. Therefore, the long-term TSR of Continental shares, compared with an index consisting of European companies that are active in the automotive and tire industry and comparable with Continental AG (STOXX Europe 600 Automobiles & Parts (SXAGR); hereinafter “benchmark index”), is a key performance criterion for the LTI. The second performance criterion is a sustainability factor that is multiplied by the degree of target achievement in order to calculate the LTI to be paid. The amount of the LTI to be paid is based on the performance of the Continental share price over the term of the LTI.
The term of the 2020 LTI plan, which was resolved on March 17, 2020, by the Supervisory Board for the members of the Executive Board, and on March 2, 2020, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2020, and is four years for the Executive Board and three years for senior executives and executives. After the expiry of the 2020 LTI plan in December 2022, the bonus for executives and senior executives was paid out in 2023. After the expiry of the 2020 LTI plan in December 2023, the bonus for the Executive Board was paid out in 2024.
The term of the 2021 LTI plan, which was resolved on December 15, 2020, by the Supervisory Board for the members of the Executive Board, and on March 22, 2021, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2021, and is four years for the Executive Board and three years for senior executives and executives. After the expiry of the 2021 LTI plan in December 2023, the bonus for executives and senior executives was paid out in 2024.
The term of the 2022 LTI plan, which was resolved on December 14, 2021, by the Supervisory Board for the members of the Executive Board, and on March 21, 2022, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2022, and is four years for the Executive Board and three years for senior executives and executives.
The term of the 2023 LTI plan, which was resolved on December 14, 2022, by the Supervisory Board for the members of the Executive Board, and on March 22, 2023, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2023, and is four years for the Executive Board and three years for senior executives and executives.
For each beneficiary of the 2020 to 2023 LTI plan, the Supervisory Board (for the members of the Executive Board) or the Executive Board (for senior executives and executives) of Continental AG agrees an allotment value in euros for the LTI.

At the start of the first fiscal year of the term of the LTI plan, this allotment value is converted into a basic holding of virtual shares. The allotment value is divided by the arithmetic mean of Continental AG’s closing share prices in Xetra trading on the Frankfurt Stock Exchange (or a successor system) in the last two months prior to the start of the term of the respective LTI plan (issue price). The basic holding is multiplied by a performance index (PI) in order to determine the final holding of virtual shares. The performance index corresponds to the product from the relative total shareholder return (TSR) on Continental shares and a sustainability factor. The relative TSR is calculated from the relative performance of the Continental TSR in comparison with the TSR on the STOXX Europe 600 Automobiles & Parts (SXAGR). The Continental TSR corresponds to the sum of the average Continental share price in the last month of the term (final share price) and all dividends distributed during the term relative to the average share price in the first month of the term (initial share price). The SXAGR TSR is determined using the same method.

The sustainability metrics of the sustainability factor comprise targets for CO2 emissions, waste for recovery quotas and good working conditions for employees in the Continental Group (e.g. accident rate and employee satisfaction).

The payment amount of the 2020 to 2023 LTI plan can total at most 200% of the defined initial share price (executives and senior executives) or issue price (Executive Board). The issue price is the average price of the two months before the start of the term.

The final holding of virtual shares is multiplied by the payout price in order to determine the gross amount of the LTI to be paid out in euros (hereinafter “payout amount”). The payout price is the sum of the arithmetic mean of Continental AG’s closing share prices in Xetra trading on the Frankfurt Stock Exchange (or a successor system) on the trading days in the last two months prior to the next ordinary Annual Shareholders’ Meeting that follows the end of the term of the LTI plan and the dividends paid out per share during the term of the LTI plan.

A Monte Carlo simulation is used in the measurement of stock options. This means that log-normal distributed processes are simulated for the price of Continental shares and the price of the STOXX Europe 600 Automobiles & Parts (benchmark index). The Monte Carlo simulation takes into account the average value accumulation of the Continental share prices and the benchmark index for the final share price and the payout price, the TSR dividends, the performance compared with the benchmark index and the restriction for the payment amount.

2024 to 2025 LTI plan: From 2024, a new LTI plan was granted to the Executive Board, senior executives and executives that aims to promote long-term commitment to the company and its sustainable growth. Therefore, the long-term TSR of Continental shares, compared with an index consisting of European companies that are active in the automotive and tire industry and comparable with Continental AG (STOXX Europe 600 Automobiles & Parts (SXAGR); hereinafter “benchmark index”), is a key performance criterion for the LTI. The second performance criterion is the return on capital employed (ROCE) determined based on the ratio of EBIT – adjusted for impairment on goodwill and divestments of companies and business operations – to average operating assets. The third performance criterion is a sustainability criterion that includes three equally weighted sustainability metrics. The amount of the LTI to be paid is based on the performance of the Continental share price over the term of the LTI.
The term of the 2024 LTI plan, which was resolved on December 13, 2023, by the Supervisory Board for the members of the Executive Board, and on March 8, 2024, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2024, and is four years for the Executive Board and three years for senior executives and executives.
The term of the 2025 LTI plan, which was resolved on December 18, 2024, by the Supervisory Board for the members of the Executive Board, and on March 24, 2025, by the Executive Board for senior executives and executives, begins retroactively as at January 1, 2025, and is four years for the Executive Board and three years for senior executives and executives.

For each beneficiary of the 2024 to 2025 LTI plan, the Supervisory Board (for the members of the Executive Board) or the Executive Board (for senior executives and executives) of Continental AG agrees an allotment value in euros for the LTI. At the start of the first fiscal year of the term of the LTI plan, this allotment value is converted into a basic holding of virtual shares. The allotment value is divided by the arithmetic mean of Continental AG’s closing share prices in Xetra trading on the Frankfurt Stock Exchange (or a successor system) in the last two months prior to the start of the term of the respective LTI plan (issue price). The basic holding is multiplied by a performance index (PI) in order to determine the final holding of virtual shares. The performance index corresponds to the weighted sum of the relative total shareholder return (TSR) on Continental shares (50%), the ROCE (30%) and a sustainability criterion (20%). The relative TSR is calculated from the relative performance of the Continental TSR in comparison with the TSR on the STOXX Europe 600 Automobiles & Parts (SXAGR). The Continental TSR corresponds to the sum of the average Continental share price in the last quarter of the term (senior executives and executives) or in the last month of the performance period (Executive Board) and all dividends distributed during the performance period relative to the share price in the first quarter of the term (senior executives and executives) or in the first month of the term (Executive Board). The SXAGR TSR is determined using the same method.

The ROCE is determined on the basis of the ratio of EBIT – adjusted for impairment on goodwill and divestments of companies and business operations – to average operating assets for the fiscal year.

The sustainability metrics of the sustainability criterion comprise targets for CO2 emissions, waste for recovery quotas and women in management positions (excluding the USA).

The final holding of virtual shares is multiplied by the payout price in order to determine the gross amount of the LTI to be paid out in euros (hereinafter “payout amount”). The payment amount of the 2024 to 2025 LTI plan can total at most 200% of the average price in the first quarter of the term (executives and senior executives) or in the last 30 trading days prior to the start of the term (Executive Board). The payout price is the average price in the last quarter of the term (executives and senior executives) or in the final 30 trading days before maturity (Executive Board), plus all dividends distributed per share during the term.

The Supervisory Board and Executive Board of Continental AG decided to adjust the share-based remuneration elements of Executive Board members, senior executives and executives to compensate for the impact of the Aumovio spin-off on the Continental AG share price. The virtual shares in Continental AG awarded under the LTI were adjusted by a factor of 1.3. For the share-based remuneration elements of senior executives and executives, the total shareholder return (TSR) of Continental AG applied in the LTI was also adjusted. The adjustment factor was applied to the final share price and to the dividends paid after the spin-off.

The following TSR parameters were used as at the measurement date of December 31, 2025:

Constant zero rates as at the measurement date of December 31, 2025:

2022 LTI plan (Executive Board): 1.97% as at the due date and 1.97% as at the end of the payout price period;
2023 LTI plan (senior executives and executives): 1.97% at the end of the payout price period;
2023 LTI plan (Executive Board): 2.01% as at the due date and 2.03% as at the end of the payout price period;
2024 LTI plan (senior executives and executives): 1.99% as at the due date and 2.02% as at the end of the payout price period;
2024 LTI plan (Executive Board): 2.08% as at the due date and 2.11% as at the end of the payout price period;
2025 LTI plan (senior executives and executives): 2.08% as at the due date and 2.13% as at the end of the payout price period;
2025 LTI plan (Executive Board): 2.20% as at the due date and 2.24% as at the end of the payout price period.

Continental share price at year-end of €67.96.
Interest rate based on the yield curve for government bonds.
Dividend payments as the arithmetic mean based on publicly available estimates for 2026 until 2028; the dividend of Continental AG amounted to €2.50 per share in 2025, and Continental AG distributed a dividend of €2.20 per share in 2024.
Historical volatilities on the basis of daily Xetra closing rates for Continental shares and the benchmark index based on the respective remaining term for LTI tranches and the 2022 to 2025 LTI plan. The historical Continental share volatilities are 28.29% for the 2022 LTI plan (Executive Board) and 33.31% for the 2023 LTI plan. The volatility for the 2024 LTI plan is 30.75% for senior executives and executives and 31.55% for the Executive Board. The volatility for the 2025 LTI plan is 31.55% for senior executives and executives and 31.49% for the Executive Board. The historical benchmark index volatilities for the 2022 and 2023 LTI plans for the Executive Board are 19.71% and 22.70%. The volatility for the 2024 LTI plan is 22.97% for senior executives and executives and 20.62% for the Executive Board. The volatility for the 2025 LTI plan is 20.62% for senior executives and executives and 20.12% for the Executive Board.
Historical correlations on the basis of daily Xetra closing rates for the benchmark index based on the respective remaining term of the components of the 2022 to 2025 LTI plans. For the 2022 and 2023 LTI plans for the Executive Board it is 0.3371 and 0.6642. For the 2024 LTI plan it is 0.6502 for senior executives and executives and 0.6185 for the Executive Board. For the 2025 LTI plan it is 0.6185 for senior executives and executives and 0.6630 for the Executive Board.
The fair values of the tranches developed as follows. The amount of the provision as at the measurement date of December 31, 2025, results from the respective vesting level:

2022 LTI plan (Executive Board): €6 million (PY: €2 million); the vesting level is 100%;
2023 LTI plan (senior executives and executives): €44 million (PY: €50 million); the vesting level is 100%;
2023 LTI plan (Executive Board): €10 million (PY: €5 million); the vesting level is 75%;
2024 LTI plan (senior executives and executives): €39 million (PY: €35 million); the vesting level is 67%;
2024 LTI plan (Executive Board): €9 million (PY: €4 million); the vesting level is 50%;
2025 LTI plan (senior executives and executives): €40 million; the vesting level is 33%;
2025 LTI plan (Executive Board): €7 million; the vesting level is 25%.

Expenses of €3 million (PY: income of €3 million) were incurred for the 2022 LTI plan for senior executives and executives, and €4 million (PY: €1 million) for the 2022 LTI plan for the Executive Board. Expenses of €12 million (PY: €15 million) were incurred for the 2023 LTI plan for senior executives and executives, and €5 million (PY: €1 million) for the 2023 LTI plan for the Executive Board. Expenses of €14 million (PY: €12 million) were incurred for the 2024 LTI plan for senior executives and executives, and €4 million (PY: €1 million) for the 2024 LTI plan for the Executive Board. Expenses of €13 million were incurred for the 2025 LTI plan for senior executives and executives, and €2 million for the 2025 LTI plan for the Executive Board.

Performance bonus (deferral) under the remuneration system as of 2024

The remuneration system of the Executive Board was further elaborated in 2024 and approved by the 2024 Annual Shareholders’ Meeting.

In the service agreement, the Supervisory Board agrees to a target amount for the performance bonus (hereinafter “STI target amount”) that is granted to each member of the Executive Board in the event of 100% target achievement. The maximum amount of the performance bonus is limited to 200% of the STI target amount.

The amount of the STI to be paid out depends on the extent to which a member of the Executive Board achieves the targets set by the Supervisory Board for this Executive Board member for the following three financial indicators as performance criteria within the meaning of Section 87a (1) Sentence 2 No. 4 AktG, which are additively linked with one another:

The adjusted operating result (adjusted EBIT) is one of the key internal performance indicators. It is the earnings before interest and taxes, adjusted for amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation and special effects.
Cash flow before financing activities, adjusted for cash inflows and outflows from the disposal or acquisition of companies and business operations (adjusted free cash flow).
Non-financial performance criteria (hereinafter “ESG indicators”), comprising indicators in environmental, social and governance areas.

The degree to which the adjusted EBIT target is achieved is weighted at 45%, the adjusted free cash flow target at 45% and the ESG indicators at 10% in the calculation of the STI.

For each financial performance criterion, the target value for 100% target achievement corresponds to the value that the Supervisory Board agreed in each case for this financial performance criterion in the planning for the respective fiscal year. For the non-financial ESG indicators, the 100% value is determined on the basis of the respective ESG indicator as a fixed amount. For each performance criterion, the Supervisory Board determines the values for target achievement of 0% and 200% on an annual basis. The degree to which the target is achieved is calculated on a straight-line basis between 0% and 200% by comparing this with the respective actual value for the fiscal year.

In addition, prior to the start of each fiscal year, the Supervisory Board can determine personal, non-financial performance criteria to be included in target achievement in the form of a personal contribution factor (hereinafter “PCF”) with a value between 0.8 and 1.2 for individual or all members of the Executive Board.

After the end of the fiscal year, the target achievement for the target criteria adjusted EBIT, adjusted free cash flow and ESG indicators are calculated on the basis of the audited consolidated financial statements, the combined non-financial statement of Continental AG and the sustainability report of the Continental Group, and the sum total of these performance criteria is multiplied by the STI target amount in accordance with the weighting described above. By multiplying this result by the PCF, the gross value of the STI amount to be paid (hereinafter “total gross amount”) is determined.

Each member of the Executive Board is obligated to invest 20% of the gross payout amount (generally corresponding to around 40% of the net payment amount) in shares of Continental AG. The remainder is paid out as short-term variable remuneration.

Each member of the Executive Board is obligated to hold the shares legally and economically for a period of at least three years from the day of acquisition.

Expenses of €11 million (PY: €6 million) were incurred for the 2025 STI in 2025. The number of shares converted by the Executive Board from the deferral of the 2024 STI came to 15,933 in 2025 (PY: 22,782).

Short-term employee benefits

Liabilities for payroll and personnel-related costs

The Group Profit Sharing Program is a profit-sharing scheme for the employees of Continental to benefit from the company’s net income. The amount of the performance bonus is calculated on the basis of internal indicators. For the reporting period, a provision of €58 million (PY: €51 million) was recognized under liabilities for payroll and personnel-related costs. Expenses from continuing and discontinued operations totaled €82 million in the reporting period (PY: €83 million).

28. Provisions for Other Risks and Obligations

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Restructuring provisions	119	60	324	169
Litigation and environmental risks	34	35	82	214
Warranties	30	—	368	20
Other provisions	96	92	189	119
Provisions for other risks	279	187	964	522

The provisions for other risks developed as follows:

€ millions	Restructuring provisions	Litigation and environmental risks	Warranties	Other provisions
As at Jan. 1, 2025	493	297	388	308
Additions	426	64	177	214
Utilizations	–306	–43	–128	–93
Reclassifications	0	0	0	0
Changes in the scope of consolidation	–372	–192	–341	–93
Reclassifications to/from liabilities held for sale	–30	–1	–19	–77
Reversals	–31	–49	–40	–54
Interest	2	4	—	–1
Exchange-rate changes	–3	–12	–7	–16
As at Dec. 31, 2025	179	69	30	188

The additions to restructuring provisions resulted mainly from restructuring projects in the former Automotive segment and measures within the ContiTech segment to adapt its structure to the changed market environment. The measures in the ContiTech segment are to be implemented in stages by 2028.

The utilization of restructuring provisions related to the implementation of restructuring measures adopted in previous years as well as restructuring measures taken into account for the first time in fiscal 2025.

The additions to and reversals of provisions for litigation and environmental risks related in particular to product liability risks and risks in connection with disputes over industrial property rights. Please see Note 36.

The utilizations relate mainly to the aforementioned product liability risks in the former Automotive segment and in the Tires segment, and to risks in connection with disputes over industrial property rights.

The changes in provisions for warranties include utilizations of €128 million (PY: €181 million) and reversals of €40 million (PY: €95 million), which are offset by additions of €177 million (PY: €289 million). These changes result mainly from changes in the scope of consolidation and from specific individual cases in the Tires and ContiTech segments.

The other provisions also include provisions for risks from operations, such as those in connection with compensation from customer and supplier claims that are not warranties. They also include provisions for dismantling and tire-recycling obligations, and provisions for possible interest payments and penalties on income tax liabilities.

The changes in the scope of consolidation primarily relate to the spin-off of the former Automotive and Contract Manufacturing segments.

29. Income Tax Liabilities

Income tax liabilities developed as follows:

€ millions	2025	2024
As at Jan. 1	531	541
Additions	333	428
Utilizations and advance payments for the current fiscal year	–364	–380
Reversals	–99	–60
Changes in the scope of consolidation	–99	0
Reclassifications to/from liabilities held for sale	–2	0
Exchange-rate changes	–16	2
As at Dec. 31	284	531

When reconciling the income tax liabilities with the income taxes paid in the consolidated statement of cash flows, the cash changes in income tax receivables must be included in addition to the utilizations and current advance payments shown here.

30. Indebtedness and Additional Notes to the Statement of Cash Flows

	Dec. 31, 2025			Dec. 31, 2024
€ millions	Total	Short-term	Long-term	Total	Short-term	Long-term
Bonds	4,626	808	3,818	3,861	649	3,212
Bank loans and overdrafts1	534	127	408	1,042	993	49
Derivative instruments	5	5	—	29	29	—
Lease liabilities	715	196	519	1,141	297	844
Liabilities from sale-of-receivables programs	238	238	—	299	299	—
Commercial paper	694	694	—	335	335	—
Other indebtedness	14	8	6	201	195	6
Indebtedness	6,826	2,075	4,751	6,909	2,797	4,112

1 Of which €9 million (PY: €8 million) secured by land charges, mortgages and similar securities.

Composition of Continental’s key bonds

€ millions Issuer/type	Amount of issue Dec. 31, 2025	Carrying amount Dec. 31, 2025	Market value Dec. 31, 2025	Amount of issue Dec. 31, 2024	Carrying amount Dec. 31, 2024	Market value Dec. 31, 2024	Coupon p.a.	Issue/maturity and fixed interest until	Issue price
CAG1 euro bond	—	—	—	600	601	593	0.375%	2019/06.2025	99.802%
CAG1 euro bond	750	755	750	750	753	747	2.500%	2020/08.2026	98.791%
CAG1 euro bond	500	516	508	500	515	511	4.000%	2023/03.2027	99.658%
CAG1 euro bond	625	626	635	625	626	636	3.625%	2022/11.2027	100.000%
CAG1 euro bond	750	764	769	750	763	775	4.000%	2023/06.2028	99.445%
CAG1 euro bond	750	748	750	—	—	—	2.875%	2025/11.2028	99.610%
CAG1 euro bond	600	601	597	—	—	—	2.875%	2025/06.2029	99.494%
CAG1 euro bond	600	604	609	600	603	606	3.500%	2024/10.2029	99.946%
Total	4,575	4,614	4,618	3,825	3,861	3,868

1 Continental Aktiengesellschaft, Hanover.

The carrying amount of the bonds increased from €3,861 million in the previous year to €4,626 million as at the end of fiscal 2025. Under the Debt Issuance Programme (DIP), Continental AG issued one listed euro bond on May 22, 2025, with an issue volume of €750 million. The issue price of this bond, which has a term of three and a half years and a fixed interest rate of 2.875% p.a., was 99.610%. A further listed euro bond of Continental AG was issued on September 9, 2025, with an issue volume of €600 million. The issue price of this bond, which has a term of three years and nine months and the same fixed interest rate of 2.875% p.a., was 99.494%. In addition, the €600-million euro bond of Continental AG that matured on June 27, 2025, was redeemed at a rate of 100.000%. This bond had an interest rate of 0.375% p.a. and a term of five years and nine months.

In April 2025, Continental Tire Andina S.A., Cuenca, Ecuador, issued two US dollar bonds with a total volume of USD 15 million, fixed interest rates of 7.500% p.a. and 7.750% p.a. and terms of four and five years, respectively. The carrying amount of the bonds was €11 million as at December 31, 2025.

Credit lines and available financing from banks

Bank loans and overdrafts amounted to €534 million (PY: €1,042 million) as at December 31, 2025, and were therefore €508 million below the previous year’s level. This can be explained by an amended contract regulating an existing cash pool between subsidiaries and a financial institution. The amended contract resulted in Continental AG, in the fourth quarter of 2025, having a legal entitlement to offset the associated cash and cash equivalents as well as loans and overdrafts with this financial institution. Consequently, offsetting in accordance with IAS 32.42 was applied for the first time in 2025, with an offsetting effect of €484 million. On December 31, 2025, there were credit lines and available financing from banks in the amount of €3,269 million (PY: €6,034 million). A nominal amount of €2,733 million of this had not been utilized as at the end of the reporting period (PY: €4,966 million). The syndicated loan of the Continental Group described below accounted for €2,122 million of this (PY: €4,000 million). Besides this, the major portion of the credit lines and available financing from banks related, as in the previous year, to predominantly floating-rate short-term borrowings.

The syndicated loan was renewed ahead of schedule in December 2019. It consisted of a revolving tranche of €4,000 million and had an original term of five years. As a result of exercising two options, each extending the term of the loan by one year, this financing commitment was ensured until December 2026. In the first half of 2025, the following amendments were agreed: Firstly, the term was extended by an additional year until December 2027, although one bank – with a share of €90 million – did not participate in the extension and will withdraw from the syndicated loan in December 2026. Secondly, it was agreed that the volume would be reduced upon completion of the spin-off of the former Automotive and Contract Manufacturing segments in September 2025. Since September 17, 2025, the volume of the syndicated loan has stood at €2,500 million. Furthermore, the margin is no longer linked to the Continental Group’s sustainability performance. As at December 31, 2025, Continental AG had utilized €250 million (PY: —) of this revolving loan of €2,500 million and Continental Rubber of America, Corp., Wilmington, Delaware, USA, had utilized €128 million (PY: —).

In the year under review, the Continental Group utilized its commercial paper programs, its sale-of-receivables programs and its various bank lines to meet short-term credit requirements.

Please see Note 31 for the maturity structure of indebtedness.

Additional notes to the statement of cash flows

The following table showing the (net) change in short-term and long-term indebtedness provides additional information on the consolidated statement of cash flows:

		Cash		Non-cash
€ millions	Dec. 31, 2025	Continuing and discontinued operations	Thereof continuing operations	Exchange- rate changes	Reclassi- fications	Changes in fair value	Changes in the scope of consolidation	Other1, 2	Dec. 31, 2024
Change in derivative instruments and interest-bearing investments3	169	–31	–12	–18	—	0	–14	0	231
Change in short-term indebtedness	–2,075	1,335	1,459	54	–1,011	21	480	–157	–2,797
thereof issuance of bonds	—	–3	–3	—	—	—	—	—	—
thereof redemption of bonds	—	602	602	—	—	—	—	—	—
thereof repayment of lease liabilities	—	290	222	—	—	—	—	—	—
Change in long-term indebtedness	–4,751	–1,749	–1,749	27	1,011	—	240	–167	–4,112
thereof issuance of bonds	—	–1,360	–1,360	—	—	—	—	—	—

1 Also includes, in addition to interest expense, the interest paid in the amount of €291 million reported under cash flow from operating activities as well as effects from the recognition, derecognition and adjustment of lease liabilities.
2 In the reporting period, assets and liabilities held for sale include the assets and liabilities of the OESL disposal group. The corresponding reclassification is included in the “Other” column and amounts to €1 million for the change in derivative instruments and interest-bearing investments, €9 million for the change in short-term indebtedness and €16 million for the change in long-term indebtedness.
3 The cash effects mainly result from money market funds and interest-bearing investments with banks, which are considered part of net indebtedness and are therefore classified as financing activities.

		Cash		Non-cash
€ millions	Dec. 31, 2024	Continuing and discontinued operations	Thereof continuing operations	Exchange- rate changes	Reclassi fications	Changes in fair value	Changes in the scope of consolidation	Other1	Dec. 31, 2023
Change in derivative instruments and interest-bearing investments2	231	30	45	2	—	–10	—	0	209
Change in short-term indebtedness3	–2,797	852	880	–25	–879	–21	1	–83	–2,642
thereof redemption of bonds	—	725	725	—	—	—	—	—	—
thereof repayment of lease liabilities	—	318	216	—	—	—	—	—	—
Change in long-term indebtedness3	–4,112	–276	–276	–1	879	—	1	–187	–4,528
thereof issuance of bonds	—	–600	–600	—	—	—	—	—	—

1 Also includes, in addition to interest expense, the interest paid in the amount of €317 million reported under cash flow from operating activities as well as effects from the recognition, derecognition and adjustment of lease liabilities.
2 The cash effects mainly result from money market funds and interest-bearing investments with banks, which are considered part of net indebtedness and are therefore classified as financing activities.
3 Amendments to IAS 1, Presentation of Financial Statements, clarify the classification of current and non-current liabilities from the 2024 reporting year onward. The comparative period was adjusted accordingly.

31. Financial Instruments

The tables below show the carrying amounts and fair values of financial assets and liabilities, whereby non-current and current items are presented together. In addition, the relevant measurement categories are shown according to IFRS 9, Financial Instruments, and the levels of the fair value hierarchy relevant for calculating fair value according to IFRS 13, Fair Value Measurement.

€ millions	Measurement category in acc. with IFRS 9	Carrying amount as at Dec. 31, 2025	Fair value as at Dec. 31, 2025	thereof Level 1	thereof Level 2	thereof Level 3
Other investments1	FVOCIwoR	5	5	1	—	4
Derivative instruments and interest-bearing investments
Derivative instruments not accounted for as effective hedging instruments	FVPL	2	2	—	2	—
Debt instruments	FVPL	77	77	77	—	—
Debt instruments	at cost	90	90	—	—	—
Trade accounts receivable without lease receivables
Trade accounts receivable	at cost	3,106	3,106	—	—	—
Bank drafts	FVOCIwR	117	117	—	117	—
Trade accounts receivable	FVPL	5	5	—	5	—
Other financial assets without lease receivables
Derivative instruments not accounted for as effective hedging instruments	FVPL	0	0	—	0
Other financial assets	FVPL	2	2	—	2	—
Other financial assets	at cost	115	115	—	—	—
Cash and cash equivalents
Cash and cash equivalents	at cost	1,424	1,424	—	—	—
Cash and cash equivalents	FVPL	80	80	80	—	—
Financial assets without lease receivables		5,022	5,022	158	127	4
Financial assets without lease receivables held for sale
Debt instruments	at cost	1	1	—	—	—
Trade accounts receivable	at cost	230	230	—	—	—
Bank drafts	FVOCIwR	13	13	—	13	—
Other financial assets	at cost	6	6	—	—	—
Cash and cash equivalents	at cost	124	124	—	—	—
Financial assets without lease receivables held for sale		374	374	—	13	—
Indebtedness without lease liabilities
Derivative instruments not accounted for as effective hedging instruments	FVPL	5	5	—	5	—
Other indebtedness	at cost	6,106	6,166	4,629	438	—
Trade accounts payable	at cost	2,349	2,349	—	—	—
Other financial liabilities
Derivative instruments not accounted for as effective hedging instruments	FVPL	0	0	—	0	—
Other financial liabilities	at cost	742	742	—	—	—
Financial liabilities without lease liabilities		9,203	9,263	4,629	443	—
Financial liabilities without lease liabilities held for sale
Indebtedness without lease liabilities
Derivative instruments not accounted for as effective hedging instruments	FVPL	0	0	—	0	—
Other indebtedness	at cost	0	0	—	—	—
Trade accounts payable	at cost	178	178	—	—	—
Other financial liabilities	at cost	16	16	—	—	—
Financial liabilities without lease liabilities held for sale		194	194	—	0	—

Aggregated according to categories as defined in IFRS 9:
Financial assets (FVOCIwR)		131
Financial assets (FVOCIwoR)		5
Financial assets (FVPL)		166
Financial assets (at cost)		5,095
Financial liabilities (FVPL)		5
Financial liabilities (at cost)		9,392

1 Excluding investments in unconsolidated affiliated companies.

€ millions	Measurement category in acc. with IFRS 9	Carrying amount as at Dec. 31, 2024	Fair value as at Dec. 31, 2024	thereof Level 1	thereof Level 2	thereof Level 3
Other investments1	FVOCIwoR	88	88	1	—	87
Derivative instruments and interest-bearing investments
Derivative instruments not accounted for as effective hedging instruments	FVPL	5	5	—	5	—
Debt instruments	FVPL	98	98	98	—	—
Debt instruments	at cost	128	128	—	—	—
Trade accounts receivable without lease receivables
Trade accounts receivable	at cost	6,887	6,887	—	—	—
Bank drafts	FVOCIwR	202	202	—	202	—
Trade accounts receivable	FVPL	11	11	—	11	—
Other financial assets without lease receivables						—
Other financial assets	FVPL	126	126	1	126	—
Other financial assets	at cost	244	244	—	—	—
Cash and cash equivalents
Cash and cash equivalents	at cost	2,902	2,902	—	—	—
Cash and cash equivalents	FVPL	63	63	63	—	—
Financial assets without lease receivables		10,755	10,755	163	344	87
Indebtedness without lease liabilities
Derivative instruments not accounted for as effective hedging instruments	FVPL	29	29	—	29	—
Other indebtedness	at cost	5,739	5,794	3,868	70	—
Trade accounts payable	at cost	6,471	6,471	—	—	—
Other financial liabilities	at cost	1,257	1,257	—	—	—
Financial liabilities without lease liabilities		13,496	13,551	3,868	99	—

Aggregated according to categories as defined in IFRS 9:
Financial assets (FVOCIwR)		202
Financial assets (FVOCIwoR)		88
Financial assets (FVPL)		304
Financial assets (at cost)		10,161
Financial liabilities (FVPL)		29
Financial liabilities (at cost)		13,466

1 Excluding investments in unconsolidated affiliated companies.

Abbreviations

at cost: measured at amortized cost
FVOCIwR: fair value through other comprehensive income with reclassification
FVOCIwoR: fair value through other comprehensive income without reclassification
FVPL: fair value through profit or loss

Levels of the fair value hierarchy according to IFRS 13, Fair Value Measurement

Level 1: quoted prices in active markets for identical instruments
Level 2: quoted prices in active markets for similar instruments or measurement methods for which all major input factors are based on observable market data
Level 3: measurement methods for which the major input factors are not based on observable market data

Financial instruments allocated to the FVOCIwoR measurement category are classified as such because they are held over a long term for strategic purposes.

For financial instruments accounted for at FVOCIwoR for which there are no quoted prices in active markets for identical instruments (Level 1) or for similar instruments, or for which there are no applicable measurement methods in which all major input factors are based on observable market data (Level 2), the fair value must be calculated using a measurement method for which the major input factors are based on non-observable market data (Level 3). If external valuation reports or information from other financing rounds are available, these are used. If such information is not available, the measurement is performed according to the measurement method that is deemed appropriate and realizable in each case: for example, according to the discounted cash flow method or by valuation according to multiples using ratios based on purchase prices for comparable transactions. Measurement at amortized cost is only considered the best estimate of the fair value of financial assets if the most recent information available for fair value measurement is insufficient. Financial instruments accounted for at FVOCIwoR are centrally monitored with regard to any changes to the major non-observable input factors and continuously checked for changes in value.

Please see Note 17 for information on the changes in carrying amounts of other investments. For reasons of materiality, a sensitivity analysis is not required.

The accounting and measurement methods applied are described in Note 2 of the notes to the consolidated financial statements.

The fair values of other indebtedness were derived from existing quotations on an active market (Level 1) or alternatively were determined by discounting all future cash flows at the applicable interest rates for the corresponding residual maturities, taking into account a company-specific credit spread (Level 2), provided their carrying amounts as at the reporting date are not approximately equivalent to their fair values. The other financial instruments measured at cost generally have short remaining terms. As a result, the carrying amounts as at the end of the reporting period are, as a rule, approximately their fair values and are not shown in the fair value hierarchy in the table.

The following table shows the changes to financial instruments at Level 3:

€ millions	Other investments
As at Jan. 1, 2024	93
Valuation effects recognized in other comprehensive income	–4
Additions	7
Debt-equity swap	1
Reclassification	–5
Changes in the scope of consolidation	–6
Exchange-rate effects	2
As at Dec. 31, 2024	87
As at Jan. 1, 2025	87
Valuation effects recognized in other comprehensive income	0
Additions	0
Reclassification	0
Changes in the scope of consolidation	–79
Exchange-rate effects	–5
As at Dec. 31, 2025	4

The Continental Group recognizes possible reclassifications between the different levels of the fair value hierarchy as at the end of the reporting period in which a change occurred.

The change in fair value recognized in other comprehensive income (OCI) of €0 million (PY: ‑4 million) relates to the revaluation of other financial assets as a result of changed business outlooks, of which equity investments still held by the Continental Group account for no changes (PY: ‑€8 million) and investments disposed of for €0 million (PY: €4 million). For reasons of materiality, a sensitivity analysis is not required.

The following income and expenses from financial instruments were recognized in the consolidated statement of income:

	Net gains and losses from interest		Other net gains and losses		Total net gains and losses
€ millions	2025	2024	2025	2024	2025	2024
Financial assets (at cost)	54	51	–18	–12	36	40
Financial assets and liabilities (FVPL)	11	10	12	–34	23	–24
Financial assets (FVOCI)	0	0	0	0	0	0
Financial liabilities (at cost)	–275	–289	–14	–27	–289	–316
Discontinued operations	9	24	6	–44	15	–20

Interest income and expense from financial instruments is reported in the financial result (Note 11).

Dividend income from financial assets measured at fair value through other comprehensive income is not material for the Continental Group.

The other net gains and losses on financial assets (at cost) and financial liabilities (at cost) mainly relate to currency effects on foreign-currency receivables and payables. There was an offsetting effect in exchange-rate movements in the reporting year and the previous year.

Collateral

As at December 31, 2025, a total of €490 million (PY: €665 million) of financial assets had been pledged as collateral. In the year under review, as in the previous year, collateral mainly consisted of trade accounts receivable assigned as collateral for liabilities from sale-of-receivables programs. The remainder related to pledged cash or other financial assets.

Risk management of financial instruments

Due to its international business activities and the resulting financing requirements, the Continental Group is exposed to default risks, risks from changes in exchanges rates and variable interest rates, and liquidity risk. The management of these risks is described in the following sections.

In addition, hedging instruments are used in the Continental Group. Their use is covered by corporate-wide policies. Internal settlement risks are minimized through the clear segregation of functional areas.

Further information about the risks presented below and about risk management can be found in the report on risks and opportunities in the consolidated management report.

1. Default risks

Default risks from trade accounts receivable, contract assets or other financial assets include the risk that receivables will be collected late or not at all if a customer or another contractual party does not fulfill its contractual obligations. The total of the positive carrying amounts is equivalent to the maximum default risk of the Continental Group from financial assets. Default risk is influenced mainly by characteristics of the customers and the sector and is therefore analyzed and monitored by central and local credit managers. The responsibilities of the credit management function also include pooled receivables risk management. Contractual partners’ creditworthiness and payment history are analyzed on a regular basis.

Default risk for non-derivative financial receivables is also limited by ensuring that agreements are entered into with partners with proven creditworthiness only or that collateral is provided or, in individual cases, trade credit insurance is agreed. The Continental Group held an immaterial amount of collateral as at December 31, 2025. There are no trade accounts receivable or contract assets for which an impairment loss was not recognized due to collateral held.

However, default risk cannot be excluded with absolute certainty, and any remaining risk is addressed by recognizing expected credit losses for identified individual risks and on the basis of experience, taking account of any relevant future components. Financial assets that are neither past due nor impaired accordingly have a prime credit rating. Default risks are calculated on the basis of corporate-wide standards. The methods for calculating loss allowances are described in Note 2 of the notes to the consolidated financial statements. As in the previous year, the annual review of the methods determined that there was no need for adjustment in the reporting year.

Trade accounts receivable and contract assets

If the creditworthiness of receivables is impaired, corresponding expenses are recognized in an allowance account.

Lifetime expected credit losses are largely calculated using estimates and assessments based on the creditworthiness of the respective customer, current economic developments and the analysis of historical losses on receivables. The creditworthiness of a customer is assessed on the basis of its payment history and its ability to make payments. It is regularly reviewed whether there is a need to take account of any risks in connection with different customer groups, sectors or countries. No such allocation of default risk was required in 2025.

Continental calculates the default rates for lifetime expected credit losses based on a three-year average, taking account of the historical defaults allocated to the different periods past due, and generally also taking account of a forward-looking component. Trade accounts receivable and contract assets whose creditworthiness is already impaired are not taken into account when calculating lifetime expected credit losses. There were no significant effects on expected credit losses from the modification of cash flows.

The table below shows the gross carrying amounts as at December 31, 2025, for trade accounts receivable and contract assets whose creditworthiness was not impaired1:

€ millions	Dec. 31, 2025	Dec. 31, 2024
not overdue	3,281	6,610
0–29 days	132	270
30–59 days	38	93
60–89 days	17	36
90–119 days	11	24
120 days or more	53	152
As at Dec. 31	3,533	7,185

1 The difference of €168 million (PY: €179 million) from the total gross carrying amounts of trade accounts receivable and contract assets results from the gross carrying amounts of trade accounts receivable and contract assets whose creditworthiness was impaired as well as the reclassification of the OESL disposal group to assets held for sale.

In the year under review, lifetime expected credit losses and loss allowances for trade accounts receivable and contract assets whose creditworthiness was impaired developed as follows:

€ millions	2025	2024
As at Jan. 1	133	132
Additions	55	72
Utilizations	–18	–25
Reversals	–41	–46
Amounts disposed of through disposal of subsidiaries	–37	–1
Reclassification to assets held for sale	–4	—
Exchange-rate changes	–5	0
As at Dec. 31	84	133

As at December 31, 2025, loss allowances for trade accounts receivable whose creditworthiness was impaired amounted to €72 million (PY: €101 million).

Of the impaired receivables written down in the reporting period, €2 million (PY: €6 million) is still subject to enforcement measures.

Other financial assets

Loss allowances equivalent to the gross carrying amount totaling €1 million (PY: €3 million) were recognized for other financial assets whose creditworthiness was impaired. Other 12-month and lifetime expected credit losses on other financial assets are not of significance.

Cash and cash equivalents, derivative instruments and interest-bearing investments

In order to minimize the default risk for cash and cash equivalents, derivative instruments and interest-bearing investments, the Continental Group generally uses banks that it has classified as core banks on the basis of defined criteria. As a general rule, these banks should have at least one investment-grade credit rating from one of the global rating agencies. The default risk can therefore be considered very low. The creditworthiness of the core banks – and of other banks and other business partners with which investments are made, loans are granted or derivative instruments are traded in derogation from the core bank principle for operational or regulatory reasons – is continuously monitored by tracking not only their credit ratings but also particularly the premiums for insuring against credit risks (credit default swap, CDS), provided such information is available. In addition, the Continental Group sets investment limits for each bank and trading limits for derivative instruments. The amount of these limits is based on the creditworthiness of the respective bank. Compliance with these limits is continuously monitored. As in the previous year, expected credit losses from cash and cash equivalents and other interest-bearing investments measured at amortized cost as well as assets measured at amortized cost with impaired creditworthiness are not significant.

2. Currency management

The international nature of the Continental Group’s business activities results in deliveries and payments in various currencies. Currency-exchange fluctuations involve the risk of losses because assets denominated in currencies with a falling exchange rate lose value, while liabilities denominated in currencies with a rising exchange rate become more expensive. For hedging, it is allowed to use only derivative instruments that have been defined in corporate-wide policies and can be reported and measured in the treasury management system. It is generally not permitted to use financial instruments that do not meet these criteria.

Operational foreign-currency risk

In operational currency management, actual and expected foreign-currency cash flows are combined as operational foreign-exchange exposures in the form of net cash flows for each transaction currency on a rolling 12-month basis. These cash flows arise mainly from receipts and payments from external and intra-corporate transactions by the Continental Group’s subsidiaries worldwide. A natural hedge approach for reducing currency risks has been pursued for several years, meaning that the difference between receipts and payments in any currency is kept as low as possible. Exchange-rate developments are also monitored, analyzed and forecast. Based on the operational foreign-exchange exposure and constantly updated exchange-rate forecasts, the interest-rate and currency committee, which convenes weekly, agrees on the hedging measures to be implemented in individual cases by concluding derivative instruments, particularly currency forwards, currency swaps and currency options with a term of up to 12 months. Their amount must not exceed 30% of the 12-month exposure per currency without Executive Board permission. In addition, further risk limits for open derivative positions are set, which considerably reduce the risks from hedging activities. Hedge accounting was not used in the reporting year or in the previous year for hedges concluded in this way. As at December 31, 2025, currency forwards to hedge operational foreign currency risks were reported with an active amount of €0 million (PY: €1 million) and a passive amount of €0 million (PY: €0 million). Their nominal volume came to €139 million as at December 31, 2025 (PY: €102 million).

As at December 31, 2025, the net exposure from financial instruments that are denominated in a currency other than the functional currency of the respective subsidiary and are not allocated to net indebtedness existed in the major currencies of the euro in the amount of ‑€137 million (PY: ‑€347 million) and the US dollar in the amount of €113 million (PY: ‑€362 million). The main local currencies accounting for the aforementioned euro-foreign currency transactions were the Chinese renminbi at ‑€123 million, the Czech koruna at ‑€30 million and the US dollar at €24 million (PY: the Chinese renminbi at ‑€208 million, the Serbian dinar at ‑€83 million and the Mexican peso at ‑€59 million). The main local currencies accounting for the US dollar-foreign currency transactions were the Mexican peso at €54 million, the euro at €52 million and the British pound at €8 million (PY: the euro at €366 million, the South Korean won at ‑€204 million and the Chinese renminbi at ‑€168 million). Of these amounts, the positive values constitute net receivables and the negative values net liabilities.

Financial foreign-currency risks

In addition to operational foreign-currency risk, currency risks also result from the Continental Group’s external and internal net indebtedness that is denominated in a currency other than the functional currency of the respective subsidiary. The quantity of these instruments is regularly summarized in the form of a financial foreign-currency exposure for each transaction currency. As at December 31, 2025, the net exposure in the major currencies amounted to €614 million (PY: ‑€736 million) for the euro and €111 million (PY: €592 million) for the US dollar. The main local currencies accounting for the aforementioned euro-foreign currency transactions were the Czech koruna at €482 million, the Hungarian forint at €55 million and the Danish krone at €39 million (PY: the Romanian leu at ‑€770 million, the Serbian dinar at ‑€353 million and the Czech koruna at €245 million). The main local currencies accounting for the US dollar-foreign currency transactions were the Mexican peso at €121 million, the Canadian dollar at ‑€93 million and the euro at €31 million (PY: the Mexican peso at €313 million, the Philippine peso at €227 million and the Canadian dollar at ‑€82 million). These currency risks are generally hedged through the use of derivative instruments, particularly currency forwards, currency swaps and cross-currency interest-rate swaps. Hedge accounting was not used in the reporting year or in the previous year for hedges concluded in this way.

Hedging financial foreign-currency risks without using hedge accounting

As at December 31, 2025, there were derivative instruments to hedge financial foreign-currency risks from intra-corporate receivables and liabilities. Hedge accounting is not used for these instruments, hence their assignment to the measurement category FVPL. As at December 31, 2025, corresponding currency forwards and currency swaps were reported with an active amount of €2 million (PY: €5 million) and a passive amount of €5 million (PY: €29 million). Their nominal volume came to €546 million as at December 31, 2025 (PY: €1,008 million).

Hedging financial foreign-currency risks (net investment hedges)

Until August 2017, the Continental Group hedged its net investments in foreign operations. Based on the decision that currency effects from net investments in a foreign operation and from designated hedges that are accumulated in the currency translation reserve in equity are to be reclassified to the income statement only if the foreign operation is sold or liquidated, €5 million (PY: €20 million) from the hedged transactions remains in the currency translation reserve in equity. Since part of the foreign operations was spun off in the reporting year as part of the spin-off of the former Automotive and Contract Manufacturing segments, currency effects accumulated in the equity reserve amounting to €15 million (PY: €0 million) were reclassified to the income statement.

Translation-related foreign-currency risks

A large number of the subsidiaries are located outside the euro currency zone. As Continental AG’s reporting currency in the consolidated financial statements is the euro, the financial statements of these companies are translated into euros. With regard to managing the risks of translation-related currency effects, it is assumed that investments in foreign companies are entered into for the long term and that earnings are reinvested. Translation-related effects that arise when the value of net asset items translated into euros changes as a result of exchange-rate fluctuations are recognized directly in equity in the consolidated financial statements and are generally not hedged.

Sensitivity analysis

IFRS 7, Financial Instruments: Disclosures, requires a presentation of the effects of hypothetical changes in exchange rates on income and equity using a sensitivity analysis. In the Continental Group, the changes in the exchange rates are related to all financial instruments outstanding as at the end of the reporting period, including the effects of hedges. Forecast transactions and translation-related foreign-currency risks are not included in the sensitivity analysis.

For those financial instruments with transaction currencies that differ from the functional currencies, a 10% appreciation or depreciation of the respective functional currency of the subsidiaries in relation to the identified different transaction currencies is assumed to determine the sensitivities. Hedging transactions are valued on the basis of a 10% percent change in the underlying forward or spot rates from the perspective of the local currency of the hedging Continental Group company.

The following table shows, before income tax expense, the overall effect as measured using this approach, as well as the individual effects resulting from the euro and the US dollar, as the major transaction currencies, on net income. As in the previous year, there is no effect on equity according to this approach.

	Local currency +10%		Local currency –10%
€ millions	2025	2024	2025	2024
Total	–110	169	110	–169
thereof EUR	–51	106	51	–106
thereof USD	–23	–23	23	23

3. Interest-rate management

Variable interest agreements and, in principle, short-term financial instruments result in a risk of rising interest rates for interest-bearing financial liabilities and falling interest rates for interest-bearing financial investments. These interest-rate risks are valuated and assessed as part of our interest-rate management activities, partly on the basis of continuous monitoring of current and anticipated long-term and short-term interest-rate developments, and are managed by means of derivative interest-rate hedging instruments as needed. The Continental Group’s interest-bearing net indebtedness is the subject of these activities based on the reporting date.

Interest-rate hedges serve exclusively to manage identified interest-rate risks. Once a year, a range is determined for the targeted share of fixed-interest indebtedness in relation to total gross indebtedness. As in the previous year, there were no derivative instruments to hedge interest-rate risks as at December 31, 2025. The Continental Group is not exposed to a risk of fluctuation in the fair value of long-term financial liabilities due to market changes in fixed interest rates, as the lenders do not have the right to demand early repayment in the event of changing rates and these liabilities are recognized at amortized cost.

Interest-rate risk

The profile of interest-bearing financial instruments allocated to net indebtedness, taking into account the effect of the Continental Group’s derivative instruments and without including items belonging to the OESL disposal group, is as follows:

€ millions	2025	2024
Fixed-interest instruments
Financial assets	44	82
Financial liabilities	5,461	5,168
Floating-rate instruments
Financial assets	1,626	3,110
Financial liabilities	1,361	1,712

Fair value sensitivity analysis

In accordance with IFRS 7, effects of financial instruments on income and equity resulting from interest-rate changes must be presented using a sensitivity analysis. In 2025, as in the previous year, interest-rate changes of 100 basis points did not have any material effects on income or equity.

Cash flow sensitivity analysis

The following table shows on the basis of net indebtedness – i.e. without including the OESL disposal group – the effects an increase or a decrease in interest rates of 100 basis points would have had on the financial result. The effects would essentially result from floating-rate financial instruments. The effects were calculated for individual groups of financial instruments taking account of their contractual arrangement and based on the expected changes in the applicable interest rates for these financial instruments depending on changes in market interest rates. As in the previous year, this analysis is based on the assumption that all other variables, and in particular exchange rates, remain unchanged.

	Interest-rate increase +100 basis points		Interest-rate decline –100 basis points
€ millions	2025	2024	2025	2024
Total	3	14	–3	–14
thereof EUR	–10	–9	10	9
thereof CNY	5	5	–5	–5
thereof USD	1	8	–1	–8
thereof GBP	1	–1	–1	1
thereof BRL	1	2	–1	–2

4. Liquidity risks

Cost-effective, adequate financing is necessary for the subsidiaries’ operating business. The central cash management unit therefore prepares a rolling liquidity forecast. This includes short-term detailed planning of incoming and outgoing payments in the immediate days to come as well as long-term calculation of forecast data using a model-based process of time series analysis and forecasting. This is supplemented with updated information on an ongoing basis.

Various marketable financial instruments are used to meet the financial requirements. These comprise overnight money, term borrowing, the issue of commercial paper, sale-of-receivables programs, the syndicated loan with a committed nominal amount of €2,500 million (PY: €4,000 million) and other bilateral loans. Furthermore, approximately 68% (PY: 56%) of gross indebtedness is financed on the capital market in the form of long-term bonds. Capital expenditure by subsidiaries is primarily financed through equity and loans from banks or subsidiaries. There are also cash-pooling arrangements with subsidiaries to the extent they are possible and justifiable in the relevant legal and tax situation. If events lead to unexpected financing requirements, the Continental Group can draw upon existing cash and cash equivalents and fixed credit lines from banks. For information on existing cash and cash equivalents, please refer to Note 23. For information on the existing utilized and unutilized loan commitments, please refer to Note 30. In order to minimize risks with regard to the availability of existing cash and cash equivalents and interest-bearing investments, investment limits are in place, which are explained under “Default risks for cash and cash equivalents as well as derivative instruments and interest-bearing investments” in this note.

Without including items belonging to the OESL disposal group, the financial liabilities without lease liabilities of €9,203 million (PY: €13,496 million) result in the following undiscounted cash outflows over the next five years and thereafter:

Dec. 31, 2025/€ millions	2026	2027	2028	2029	2030	thereafter	Total
Other indebtedness incl. interest payments	1,997	1,655	1,608	1,254	2	3	6,519
Derivative instruments with gross settlement – cash outflows	398	—	—	—	—	—	398
Derivative instruments with gross settlement – cash inflows	–393	—	—	—	—	—	–393
Derivative instruments with net settlement	0	—	—	—	—	—	0
Trade accounts payable	2,349	—	—	—	—	—	2,349
Other financial liabilities	736	1	0	0	0	7	745

Dec. 31, 2024/€ millions	2025	2026	2027	2028	2029	thereafter	Total
Other indebtedness incl. interest payments	2,533	857	1,211	814	633	4	6,052
Derivative instruments with gross settlement – cash outflows	858	—	—	—	—	—	858
Derivative instruments with gross settlement – cash inflows	–827	—	—	—	—	—	–827
Derivative instruments with net settlement	—	—	—	—	—	—	—
Trade accounts payable	6,471	—	—	—	—	—	6,471
Other financial liabilities	1,250	1	0	0	0	8	1,260

In the analysis, foreign-currency amounts were translated into euros using the current closing rate as at the end of the reporting period. For floating-rate non-derivative financial instruments and floating-rate interest payments from derivative financial instruments, the future interest payment flows are generally forecast using the most recently contractually fixed interest rates. The analysis only includes cash outflows from financial liabilities. For derivative instruments that are liabilities at the end of the reporting period, the undiscounted net payments are shown given a contractually specified net settlement; if gross settlement is contractually specified, the undiscounted payment inflows and outflows are presented separately. Cash inflows from financial assets were not included.

Supplier financing programs

The Continental Group has several supplier financing programs. For more information, please refer to Note 33. These programs offer suppliers the opportunity to procure cash and cash equivalents at favorable terms from financial service providers prior to due dates within the terms of payment. The terms of payment remain within a standard industry framework for corresponding trade accounts payable so that no significant liquidity risks arise for Continental in the event of any potential termination of these programs.

Offsetting of financial instruments

Continental AG concludes business in the form of derivative instruments on the basis of the German Master Agreement on Financial Derivatives Transactions (Deutscher Rahmenvertrag für Finanztermingeschäfte). Fundamentally, there is the option to combine the amounts owed by each counterparty under such agreements on the same day in respect of all outstanding transactions in the same currency into a single net amount to be paid by one party to another.

The German Master Agreement on Financial Derivatives Transactions does not meet the criteria for offsetting in the statement of financial position. This is due to the fact that Continental AG has no legal right to the netting of the amounts recognized at the current time. According to the regulations of the German Master Agreement, the right to netting can be enforced only when future events occur, such as the insolvency of or default by a contractual party. In such cases, all outstanding transactions under the agreement are ended, the fair value is calculated as at this time, and just a single net amount is paid to settle all transactions.

At two Brazilian subsidiaries (PY: one Brazilian subsidiary) there are local framework agreements on the basis of which these companies have concluded derivative instruments. These agreements also do not meet the criteria for offsetting in the statement of financial position.

The following table shows the carrying amounts of the reported stand-alone derivative instruments, their offsetting in the statement of financial position, and any potential arising from the specified agreements subject to the occurrence of certain future events.

In addition, the amended contract regulating an existing cash pool between selected subsidiaries and a financial institution in the fourth quarter of 2025 resulted in Continental AG having a legal entitlement to offset the associated cash and cash equivalents as well as loans and overdrafts with this financial institution. Consequently, offsetting in accordance with IAS 32.42 was applied for the first time as at the reporting date. There were no further amounts subject to offsetting as at the reporting date or as at the same date of the previous year.

	Dec. 31, 2025				Dec. 31, 2024
€ millions	Cash and cash equivalents	Bank loans and overdrafts	Derivative financial assets	Derivative financial liabilities	Cash and cash equivalents	Bank loans and overdrafts	Derivative financial assets	Derivative financial liabilities
Gross amount	485	484	3	5	—	—	5	29
Respective financial instruments, netted	484	484	—	—	—	—	—	—
Carrying amounts	1	—	3	5	—	—	5	29
Respective financial instruments, not netted	—	—	1	1	—	—	3	3
Net amount	1	—	2	4	—	—	2	26

32. Other Financial Liabilities

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Liabilities to related parties	—	1	0	1
Liabilities for selling expenses	734	—	1,235	—
Miscellaneous financial liabilities	2	6	14	7
Other financial liabilities	736	7	1,249	8

Liabilities for selling expenses relate in particular to obligations from bonus agreements with customers and deferred price reductions granted.

33. Trade Accounts Payable

Trade accounts payable amounted to €2,349 million (PY: €6,471 million) as at the end of the fiscal year. The liabilities are measured at amortized cost. The full amount is due within one year.

For information on liquidity risk, currency risk and the sensitivity analysis for trade accounts payable, please see Note 31.

The Continental Group has several supplier financing programs. However, trade accounts payable that fall under these programs remain under the item trade accounts payable even if they are prefinanced by a financial institution to suppliers, as the character and the function of such trade accounts payable is not materially altered by the programs (no material modification). For this reason, and due to the continued standard industry terms of payment for liabilities under these programs, there is also no impact on the consolidated statement of cash flows.

As at December 31, 2025, trade accounts payable totaling €38 million were recognized within the Continental Group, which are attributable to the aforementioned programs. Continental has no information on the actual amount of prefinancing. It is assumed that the entire volume of trade accounts payable to suppliers has been prefinanced. The terms of payment of the trade accounts payable under the aforementioned programs are essentially comparable to other trade accounts payable of relevant companies of the Continental Group.

34. Other Liabilities

	Dec. 31, 2025		Dec. 31, 2024
€ millions	Short-term	Long-term	Short-term	Long-term
Liabilities for VAT and other taxes	148	—	302	—
Deferred income	0	2	21	15
Miscellaneous liabilities1	202	4	356	8
Other liabilities	351	7	679	23

1 Miscellaneous liabilities mainly include excess payments by customers and other liabilities to related parties. Please see Note 41.

35. Liabilities Held for Sale

In the former Automotive segment, liabilities totaling €59 million were reclassified to liabilities held for sale; these assets were disposed of as part of the spin-off. Please see Note 6.

The liabilities held for sale consist exclusively of liabilities of the OESL disposal group and are broken down as follows:

€ millions	Dec. 31, 2025
Employee benefits	239
Trade accounts payable	178
Provisions	127
Other liabilities	69
Liabilities held for sale	613

Back to overview

%	2025	2024
Discount rate	5.53	5.89
Rate of increase in healthcare and life insurance benefits in the following year	0.84	0.93
Long-term rate of increase in healthcare and life insurance benefits	0.42	0.30

€ millions
Benefits paid1
2024	9
2025	10
Expected benefit payments
2026	11
2027	11
2028	11
2029	5
2030	5
Total of years 2031 to 2035	21

Charting New Paths.

2025 Annual Report

To Our Shareholders

Corporate Governance

Management Report

Corporate Profile

Economic Report

Report on Expected Developments

Report on Risks and Opportunities

General Conditions

Future General Conditions

Consolidated Financial Statements

Independent Auditor’s Reports

Further Information

Service

Notes to the Consolidated Statement of Financial Position

13. Goodwill and Other Intangible Assets

14. Property, Plant and Equipment

15. Leases

Continental Group as lessee

Right-of-use assets

Lease liabilities

In the reporting year, the following amounts were recognized in the income statement:

In the reporting year, the following amounts were recognized in the statement of cash flows:

Potential future cash outflows

Continental Group as lessor

Operating leases

Finance leases

16. Investments in Equity-Accounted Investees

17. Other Investments

18. Deferred Taxes

19. Other Financial Assets

20. Other Assets

21. Inventories

22. Trade Accounts Receivable

23. Cash and Cash Equivalents

24. Assets Held for Sale

25. Equity

Non-controlling interests

Non-controlling interests

26. Capital Management

27. Employee Benefits

Long-term employee benefits Pension plans

Defined benefit plans

Germany

USA

United Kingdom

Canada

Plan assets

Other post-employment benefits

Obligations similar to pensions

Defined contribution pension plans

Other employee benefits

Variable remuneration elements

Long-term incentive plans (LTI plans)

Performance bonus (deferral) under the remuneration system as of 2024

Short-term employee benefits Liabilities for payroll and personnel-related costs

28. Provisions for Other Risks and Obligations

29. Income Tax Liabilities

30. Indebtedness and Additional Notes to the Statement of Cash Flows

Composition of Continental’s key bonds

Credit lines and available financing from banks

Additional notes to the statement of cash flows

31. Financial Instruments

Abbreviations

Levels of the fair value hierarchy according to IFRS 13, Fair Value Measurement

Collateral

Risk management of financial instruments

1. Default risks

Trade accounts receivable and contract assets

Other financial assets

Cash and cash equivalents, derivative instruments and interest-bearing investments

2. Currency management

Operational foreign-currency risk

Financial foreign-currency risks

Hedging financial foreign-currency risks without using hedge accounting

Hedging financial foreign-currency risks (net investment hedges)

Translation-related foreign-currency risks

Sensitivity analysis

3. Interest-rate management

Long-term employee benefits

Pension plans

Short-term employee benefits

Liabilities for payroll and personnel-related costs