Other disclosures

5.1 Commitments

At December 31, 2011, the Schaeffler Group had open commitments under fixed contracts to [--break--]  purchase property, plant and equipment in the amount of EUR 261 m (prior year: EUR 101 m). These commitments are expected to be settled as follows:

No. 082
in € millions 12/31/2011 12/31/2010
Less than one year 249 101
Between one and five years 12 0
More than five years 0 0
Total 261 101

5.2 Contingent liabilities

No. 083
in € millions 12/31/2011 12/31/2010
Obligations under guarantees and warranties 10 11
Security pledged to third parties 0 1
Other 34 18
Total 44 30

As in the prior year, obligations under guarantees and warranties consist primarily of security given and payment guarantees.

Other contingent liabilities consist primarily of claims raised by current and former employees as well as possible reassessments issued by taxation authorities. Due to the remote probability of an outflow of resources in each of these cases, they do not meet the conditions to be recognized as provisions.

In late 2011, several antitrust authorities have commenced investigations of several manufacturers [--break--]  of rolling and plain bearings for the automotive and other industrial sectors. The authorities are investigating possible agreements violating antitrust laws. Schaeffler AG and some of its subsidiaries are subject to these investigations. Schaeffler is cooperating with the investigating authorities [--break--] and supports their work. To date, the investigations have not yet been specified in more detail. There is a risk that the antitrust authorities will impose penalties, and that third parties may claim dam[--break--]ages. The amount of potential penalties or subsequent claims is uncertain, but could be significant.

5.3 Additional disclosures on the consolidated statement
of cash flows

The consolidated statement of cash flows has been adjusted for exchange differences arising on translation to the Euro, as these amounts do not represent cash flows.

Additional disclosures on the consolidated statement of cash flows

No. 084
in € millions 2011 2010
Interest received 13 10
Interest paid -686 -644
Income taxes paid -238 -298

Free cash flow for 2011 amounts to EUR 319 m (prior year: EUR 566 m). The significant decline in free cash flow in 2011 compared to the prior year was driven by the very substantial increase in cash outflows for capital expenditures.

Cash flows from operating activities were EUR 1,084 m (prior year: EUR 890 m). This inflow results primarily from improved earnings in 2011 as reflected in EBIT of EUR 1,689 m (prior year: EUR 1,509 m).

In 2011, cash totaling EUR 765 m was used in investing activities (prior year: EUR 324 m). Capital expenditures on intangible assets and property, plant and equipment amount to EUR 773 m, [--break--]  significantly more than the EUR 361 m spent in the prior year due to the growth-related expansion of capacity.

Cash of EUR 646 m (prior year: EUR 200 m) was used in financing activities. The dividend of [--break--]  EUR 400 m paid to Schaeffler Verwaltungs GmbH and the repayment of a loan due to Schaeffler Verwaltungs GmbH of EUR 186 m were the largest cash outflows. Other payments also include the repayment of a loan due to a IHO Group company (see Note 5.5 for this term) of EUR 30 m.

At December 31, 2011, cash and cash equivalents amount to EUR 397 m (prior year: EUR 733 m), including EUR 95 m (prior year: EUR 168 m) held by subsidiaries in Argentina, Brazil, China, Chile, Colombia, India, Indonesia, South Korea, South Africa, Taiwan, the Philippines, Venezuela and Vietnam. These subsidiaries are subject to exchange controls and other legal restrictions. As a result, the availability of these funds to the parent entity is restricted.

5.4 Segment reporting

In accordance with IFRS 8, segment information is reported under the management approach, reflecting the internal organizational and management structure including the internal reporting system to the Schaeffler Group executive board. Schaeffler engages in business activities (1) from which it may earn revenues and incur expenses, (2) whose EBIT is regularly reviewed by the Schaeffler Group executive board and used as a basis for future decisions on how to allocate resources to the segments and to assess their performance, and (3) for which discrete financial information is available.

Schaeffler’s operating segments are reported in a manner consistent with the internal reporting provided to the Schaeffler Group executive board. The Schaeffler Group is divided into the two segments Automotive and Industrial as described below, each focusing on a specific customer group worldwide. The segments offer different products and services and are managed separately because they require different technology and marketing strategies. The following summary describes the operations of each of the Schaeffler Group’s two reportable segments:

Automotive: Product and service business with customers in the automotive sector. These include [--break--]  manufacturers of passenger cars and their suppliers ( OEM, Tier 1 and Tier 2) as well as companies [--break--] focusing on the distribution of spare parts for passenger cars and commercial vehicles (aftermarket). Products range from wheel bearings as well as chassis and steering components through transmission systems and developments to engine components and valve control systems.

Industrial: Product and service business with manufacturers of investment goods. These customers operate in the production machinery, rail traffic, wind power, consumer goods, heavy industries, power transmission and industrial aftermarket (MRO) sectors. The business with customers in the aerospace industry, i. e. aircraft manufacturers and their suppliers, is also included in this segment. The key products of this segment are rolling and plain bearings, [--break--]  linear guidance systems and direct drives.

Significant customers

In 2011, Schaeffler generated revenue of EUR 1,154 m (prior year: EUR 991 m) from one key customer, representing approximately 10.8 % (prior year: 10.4 %) of total group revenue and approximately 16.1 % (prior year: 15.7 %) of Automotive segment revenue.

Since segment reporting information is based on internal management accounting requirements and not all items can be allocated, the information for segment reporting purposes [--break--]  differs from that reported in accordance with IFRS.

Revenue from transactions in connection with materials provided to external service providers (contract manufacturing and subcontracting) is not allocated to the segments.

Information on the operating activities of the two reportable segments is included below. Performance is measured based on EBIT as the executive board believes that such information is most relevant in evaluating the results of the segments in relation to other entities that operate within these industries.

The amounts for revenue, EBIT, assets, capital expenditures, as well as amortization, depreciation, and impairments are reported based on the current allocation of customers to segments. In the past, assets, capital expenditures and amortization, depreciation, and impairments were reported based on an allocation of products to segments. Prior year figures were adjusted accordingly for comparability. Gains on transactions between operating segments are not included.

The allocation of customers to segments is reviewed at least annually and adjusted where [--break--]  necessary. To ensure that segment information is comparable, prior year information is also [--break--] presented using the current year’s customer structure.

Reconciliation of segment earnings

No. 085
Reconciliation to earnings before income taxes
in € millions
2011 2010
EBIT Automotive 1) 1,074 990
EBIT Industrial 1) 615 519
EBIT 1,689 1,509
Financial result -409 -1,159
Earnings before income taxes 1,280 350
1) Prior year information presented based on 2011 segment structure.

The reportable divisions Automotive and Industrial are managed on a global basis and operate production and distribution facilities in the geographical areas Germany, Europe excluding Germany, North America, South America and Asia/Pacific.

Information about geographical areas

Excel Download No. 086
Revenue 1) Non-current assets 2)
in € millions 2011 2010 12/31/2011 12/31/2010
Germany 2,856 2,575 1,690 1,415
Europe excluding Germany 3,452 3,037 969 1,064
North America 1,409 1,253 352 363
South America 628 602 177 220
Asia/Pacific 2,349 2,028 693 554
Total 10,694 9,495 3,881 3,616
1) Revenue by customer location. Prior year information presented based on 2011 segment structure.
2) Non-current assets by production location. Non-current assets consist of property, plant and equipment and intangible assets.

For purposes of reporting information by geographical area, revenue is allocated to geographical [--break--]  areas based on the geographic location of customers, while assets are allocated based on the geographic location of the assets.

5.5 Related parties

Under the definitions of IAS 24, Maria-Elisabeth Schaeffler and Georg F.W. Schaeffler are related parties of the Schaeffler Group.

Related parties of the Schaeffler Group include the members of the executive board of Schaeffler [--break--]  AG: The members of the statutory board of directors Dr Juergen M. Geissinger, Wolfgang Dangel (since October 13, 2011), Professor Dr Peter Gutzmer, Kurt Mirlach, Klaus Rosenfeld, and Robert [--break--] Schullan, as well as the other members of the executive board Rainer Hundsdoerfer, Norbert Indlekofer, Oliver Jung, Professor Dr Peter Pleus and Dr Gerhard Schuff.

The Schaeffler Group’s related parties also encompass the members of the supervisory board [--break--]  of Schaeffler AG, which, in addition to Maria-Elisabeth Schaeffler and Georg F. W. Schaeffler, [--break--] include the following: Professor Dr Hans-Joerg Bullinger, Dr Eckhard Cordes, Dr Hubertus [--break--] Erlen, Professor Dr Bernd Gottschalk, Jochen Homburg, Franz-Josef Kortuem, Norbert Lenhard, Dr Siegfried Luther, Thomas Moelkner, Wolfgang Mueller, Tobias Rienth (since March 28, 2011), Stefanie Schmidt, Dirk Spindler, Robin Stalker, Juergen Stolz (until March 28, 2011), Salvatore Vicari, Juergen Wechsler, Dr Otto Wiesheu, and Juergen Worrich.

The Schaeffler Group’s related companies consist of the direct and indirect parent companies of Schaeffler AG as well as other companies controlled by these parent companies. These related companies are referred to as “parent IHO companies” below.

In addition, the Continental AG Group companies are related to the Schaeffler Group.

The following table summarizes income and expenses from transactions with related parties recognized in the Schaeffler Group consolidated financial statements. The summary also shows receivables and payables related to such transactions included in the consolidated financial statements as at the end of each reporting period.

Receivables and payables from transactions with related parties

No. 087
Receivables Payables
in € millions 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Parent IHO companies 1 0 422 33
Continental Group companies 10 12 4 3

Income and expenses from transactions with related parties

No. 088
Expenses Income
in € millions 2011 2010 2011 2010
Parent IHO companies 12 5 1 1
Continental Group companies 24 19 75 72

The shares in Schaeffler AG are indirectly held by Maria-Elisabeth Schaeffler and Georg F. W. Schaeffler. The immediate parent company of Schaeffler AG is Schaeffler Verwaltungs GmbH. The ultimate parent company is INA-Holding Schaeffler GmbH & Co. KG (IHO).

In 2011 and 2010, Schaeffler Group companies had various business relationships with the [--break--]  parent IHO companies. These include fees for bank guarantees of bills of exchange and vari [--break--] ous services recharged to the Schaeffler Group as well as shareholder loans from a parent IHO company. The shareholder loans consist primarily of the EUR 417 m loan from Schaeffler [--break--] Verwaltungs GmbH discussed in 4.10 Current/Non-current financial debt .

In 2011, 12,043,528 Continental AG shares were distributed to Schaeffler Verwaltungs GmbH as [--break--]  a dividend in kind (see 2.1 Scope of consolidation and 4.9 Shareholders’ equity ) and a derivative financial instrument with a positive fair value was assigned on an arm’s length basis to Schaeffler Verwaltungs GmbH for EUR 8 m.

Related-party business relationships exist with Continental Group companies in the form of the supply of vehicle components and tools, the rendering of development and other services, and the lease of commercial real estate. The transactions with the Continental AG Group were entered into at arm’s length conditions.

In addition, on August 20, 2008, the Schaeffler Group entered into an investor agreement with Continental AG which is non-cancellable until the close of the Continental AG annual general meeting in 2014. The agreement stipulates, among other things, that Schaeffler AG commit itself to restricting its investment in Continental AG to 49.99 % until August 31, 2012 and to compensating Continental AG for certain tax disadvantages resulting from Continental AG losing the ability to utilize certain tax loss carryforwards.

In 2010, Schaeffler AG acquired a non-controlling interest in Schaeffler Immobilien GmbH & Co. KG consisting of 5.1 % of the limited partner shares from Georg F. W. Schaeffler for a purchase price of EUR 13 m. Mr Schaeffler converted the purchase price to an interest-free loan that was outstanding at December 31, 2011 and was repaid in January 2012.

The Schaeffler Group does not have any other significant direct business relations with Maria-Elisabeth and Georg F. W. Schaeffler.

In 2011, short-term employee benefits of EUR 17 m (prior year: EUR 16 m) were paid to members of the Schaeffler AG executive board, including EUR 10 m to members of the statutory board of directors (prior year: EUR 16 m to members of the executive management board). Post-employment benefit expenses of EUR 2 m (prior year: EUR 1 m) were recognized for members of the executive board. No termination benefits were incurred in 2011 (prior year: EUR 4 m). Total executive board remuneration for 2011 was EUR 19 m.

No advances or loans were granted to members of Schaeffler AG’s executive board or supervisory board. The composition of the executive board of Schaeffler AG (in 2011: executive board of Schaeffler AG/executive management board of Schaeffler GmbH) has changed from the prior year (executive management board of Schaeffler GmbH).

The supervisory board was created in August 2010 due to legal requirements regarding employee co-determination. Short-term benefits paid to members of Schaeffler AG’s supervisory board amounted to EUR 1 m in 2011 (prior year: EUR 0.4 m).

Former members of the executive board (and their surviving dependants) of the company and its legal predecessor companies received remuneration of EUR nil in 2011 (prior year: EUR 1 m).

Provisions for pension obligations, net of related plan assets, for former members of the executive board (and their surviving dependants) of the company and its legal predecessor companies amount to EUR 6 m at December 31, 2011 (prior year: EUR 6 m).

5.6 Auditors’ fees

Fees paid to the group auditors and their related companies for services rendered in 2011 and required to be disclosed by section 314 (1)(9) HGB total EUR 3,948 thousand (prior year: [--break--]  EUR 3,252 thousand) and consist of EUR 1,674 thousand (prior year: EUR 1,407 thousand) for financial statement audit services, EUR 1,068 thousand (prior year: EUR nil) for other attestation services, EUR 242 thousand (prior year: EUR 759 thousand) for tax advisory services, and EUR 964 thousand (prior year: EUR 1,086 thousand) for other services.

These fees were paid for services rendered to Schaeffler AG and its German subsidiaries. KPMG AG Wirtschaftspruefungsgesellschaft is considered to be the auditor. Prior year figures were adjusted to ensure comparability because they included fees paid to other firms of KPMG’s [--break--]  European network.

5.7 Exemptions under section 264 (3) HGB

The following domestic subsidiaries meet the requirements set out in section 264 (3) HGB to be eligible for the exemption for 2011 and are availing themselves of that exemption:

  • AFT Atlas Fahrzeugtechnik GmbH, Werdohl
  • AS Auslandsholding GmbH, Buehl
  • Duerkopp Maschinenbau GmbH, Schweinfurt
  • Egon von Ruville GmbH, Hamburg
  • FAG Industrial Services GmbH, Herzogenrath
  • FAG Kugelfischer GmbH, Schweinfurt
  • Gesellschaft fuer Arbeitsmedizin und Umweltschutz mbH - AMUS, Homburg
  • IAB Holding GmbH, Herzogenaurach
  • IAB Verwaltungs GmbH, Herzogenaurach
  • INA Automotive GmbH, Herzogenaurach
  • INA Beteiligungsverwaltungs GmbH, Herzogenaurach
  • Industrieaufbaugesellschaft Buehl mbH, Buehl
  • Industriewerk Schaeffler INA-Ingenieurdienst GmbH, Herzogenaurach
  • LuK Auslandsholding GmbH, Buehl
  • LuK Beteiligungsgesellschaft mbH, Buehl
  • LuK Vermoegensverwaltungsgesellschaft mbH, Buehl
  • PD Qualifizierung und Beschaeftigung GmbH, Schweinfurt
  • Schaeffler Beteiligungsverwaltungs GmbH, Herzogenaurach
  • Schaeffler Europa Logistik GmbH, Herzogenaurach
  • Schaeffler Versicherungs-Vermittlungs GmbH, Herzogenaurach

5.8 Events after the reporting period

On January 27, 2012, Schaeffler AG entered into a new EUR 8 billion loan agreement with eight banks. The new agreement replaces the existing loan agreements dated November 2009, improves the maturity profile of the financial debt and the collateral package and optimizes Schaeffler’s debt financing.

The new loan agreement replaces the existing credit facility totaling EUR 7.7 billion, which would have been available until the end of June 2014 including the option to extend it by one year. The new refinancing package includes EUR 5.0 billion in loans repayable at maturity (Term Loans), one tranche to be replaced by corporate bonds, and a revolving credit facility of EUR 1.0 billion. The loans have staggered maturities of up to five years.

The new loan agreement became effective on February 9, 2012. As the Schaeffler Group issued corporate bonds with a total volume of EUR 2.0 billion at the same time, the tranche that was to be replaced by the corporate bonds did not need to be drawn upon.

The corporate bonds consist of two Euro- and two Dollar-denominated tranches. The two Euro-tranches totaling EUR 1.2 billion carry maturities of five and seven years and bear interest at [--break--]  7.75 % p.a. and 8.75 % p.a. The two Dollar-tranches totaling approximately EUR 1.1 billion also carry maturities of five and seven years and bear interest at 7.75 % p.a. and 8.50 % p.a.

In addition, Schaeffler AG plans to place parts of the loan with additional banks and institutional investors. Schaeffler has already been able to syndicate a total volume of EUR 1.4 billion, consisting of a EUR 450 m Euro-tranche and a Dollar-tranche of approximately USD 1.3 billion, to institutional investors in mid-February 2012. This transaction enabled the Schaeffler Group to obtain favorable terms: A margin of 500 basis points above EURIBOR for the Euro-tranche and a margin of 475 basis points above LIBOR for the Dollar-tranche.

On February 20, 2012, Continental AG announced its intention to propose a dividend of EUR 1.50 per share for 2011 to its annual general meeting. This would result in a gross dividend of approximately EUR 108 m on the investment in Continental AG held by Schaeffler Beteiligungsholding GmbH & Co. KG.

No other material events occurred after December 31, 2011 that we expect to have a significant impact on the company’s net assets, financial position and results of operations of Schaeffler AG.

5.9 List of shareholdings required by section 313 (2) HGB

The parent company is Schaeffler AG with its registered office located in Herzogenaurach.

List of shareholdings

No. 089
Entity Location Country code Group
ownership
interest in %
A. Entities fully consolidated
I. Germany (50)
AFT Atlas Fahrzeugtechnik GmbH Werdohl DE 100.00
AS Auslandsholding GmbH Buehl DE 100.00
CBF Europe GmbH Wuppertal DE 100.00
CVT Beteiligungsverwaltungs GmbH Buehl DE 100.00
CVT Verwaltungs GmbH & Co. Patentverwertungs KG Buehl DE 100.00
Duerkopp Maschinenbau GmbH Schweinfurt DE 100.00
Egon von Ruville GmbH Hamburg DE 100.00
FAG Aerospace GmbH Schweinfurt DE 100.00
FAG Aerospace GmbH & Co. KG Schweinfurt DE 100.00
FAG Industrial Services GmbH Herzogenrath DE 100.00
FAG Kugelfischer GmbH Schweinfurt DE 100.00
Gesellschaft fuer Arbeitsmedizin und Umweltschutz mbH - AMUS Homburg DE 100.00
GURAS Beteiligungs GmbH & Co. Vermietungs-KG Pullach DE 99.00
IAB Grundstuecksverwaltungsgesellschaft mbH Buehl DE 100.00
IAB Holding GmbH Herzogenaurach DE 100.00
IAB Verwaltungs GmbH Herzogenaurach DE 100.00
IDAM Beteiligungs GmbH Herzogenaurach DE 100.00
INA - Drives & Mechatronics GmbH & Co. oHG
(since 1/1/2012: INA - Drives & Mechatronics AG & Co. KG)
Suhl DE 100.00
INA Automotive GmbH Herzogenaurach DE 100.00
INA Beteiligungsgesellschaft mbH Herzogenaurach DE 100.00
INA Beteiligungsverwaltungs GmbH Herzogenaurach DE 100.00
Industrieaufbaugesellschaft Buehl mbH Buehl DE 100.00
Industriewerk Schaeffler INA-Ingenieurdienst GmbH Herzogenaurach DE 100.00
KWK Kraftfahrzeug-Werkstatt-Konzept Verwaltungs-
gesellschaft mbH
Langen DE 100.00
LuK ASG GmbH Buehl DE 100.00
LuK Auslandsholding GmbH Buehl DE 100.00
LuK Beteiligungsgesellschaft mbH Buehl DE 100.00
LuK GmbH & Co. KG Buehl DE 100.00
LuK Management GmbH Buehl DE 100.00
LuK Truckparts GmbH & Co. KG Kaltennordheim DE 100.00
LuK Unna GmbH & Co. KG Unna DE 100.00
LuK Vermoegensverwaltungsgesellschaft mbH Buehl DE 100.00
MEDUSA Beteiligungsverwaltungs-Gesellschaft Nr. 64 mbH Buehl DE 100.00
PD Qualifizierung und Beschaeftigung GmbH Schweinfurt DE 100.00
Raytech Composites Europe GmbH Morbach DE 100.00
REDON Beteiligungs GmbH & Co. Vermietungs-KG Pullach DE 99.90
Schaeffler Automotive Aftermarket GmbH & Co. KG Langen DE 100.00
Schaeffler Beteiligungsgesellschaft mbH Herzogenaurach DE 100.00
Schaeffler Beteiligungsverwaltungs GmbH Herzogenaurach DE 100.00
Schaeffler Elfershausen GmbH & Co. oHG
(since 1/1/2012: Schaeffler Elfershausen AG & Co. KG)
Herzogenaurach DE 100.00
Schaeffler Europa Logistik GmbH Herzogenaurach DE 100.00
Schaeffler Friction Products GmbH Morbach DE 100.00
Schaeffler Friction Products Hamm GmbH Hamm/Sieg DE 100.00
Schaeffler Immobilien GmbH & Co. KG
(since 1/1/2012: Schaeffler Immobilien AG & Co. KG)
Herzogenaurach DE 100.00
Schaeffler Motorenelemente GmbH & Co. KG
(since 1/1/2012: Schaeffler Motorenelemente AG & Co. KG)
Herzogenaurach DE 100.00
Schaeffler Technologies GmbH & Co. KG
(since 1/1/2012: Schaeffler Technologies AG & Co. KG)
Herzogenaurach DE 100.00
Schaeffler Versicherungs-Vermittlungs GmbH Herzogenaurach DE 100.00
Unterstuetzungskasse der FAG Kugelfischer e. V. Schweinfurt DE 100.00
WPB Water Pump Bearing Beteiligungsgesellschaft mbH Herzogenaurach DE 100.00
WPB Water Pump Bearing GmbH & Co. KG Herzogenaurach DE 100.00
II. Foreign (104)
Schaeffler Middle East FZE Jebel Ali AE 100.00
Schaeffler Argentina S.R.L. Buenos Aires AR 100.00
Schaeffler Austria GmbH Berndorf-St. Veit AT 100.00
Schaeffler Australia Pty Ltd. Frenchs Forest AU 100.00
Schaeffler Belgium SPRL Braine L’ Alleud BE 100.00
Schaeffler Bulgaria OOD Sofia BG 100.00
FAG Servicos Industriais Ltda. São Paulo BR 100.00
LuK do Brasil Embreagens Ltda. Sorocaba BR 100.00
Schaeffler Brasil Ltda. Sorocaba BR 100.00
FAG Aerospace Inc. Stratford CA 100.00
Schaeffler Canada Inc. Oakville CA 100.00
Grico Invest GmbH Chur CH 100.00
HYDREL GmbH Romanshorn CH 100.00
INA Invest GmbH Horn CH 100.00
Octon G.m.b.H. Horn CH 100.00
Schaeffler Chile Rodamientos Ltda. Santiago CL 100.00
Schaeffler (China) Co., Ltd. Taicang CN 100.00
Schaeffler (Nanjing) Co., Ltd. Nanjing City CN 100.00
Schaeffler (Ningxia) Co., Ltd. Yinchuan CN 100.00
Schaeffler Aerospace Bearings (Taicang) Co., Ltd. Taicang CN 100.00
Schaeffler Friction Products (Suzhou) Co., Ltd. Suzhou CN 100.00
Schaeffler Holding (China) Co., Ltd. Shanghai CN 100.00
Schaeffler Trading (Shanghai) Co., Ltd. Shanghai CN 100.00
Schaeffler Colombia Ltda. Bogotá CO 100.00
INA Lanskroun, s.r.o. Lanskroun CZ 100.00
LuK-Aftermarket Service s.r.o. Prague CZ 100.00
Schaeffler CZ s.r.o. Prague CZ 100.00
Schaeffler Danmark ApS Aarhus DK 100.00
RODISA, S.A. Elgoibar ES 100.00
Schaeffler Iberia, S.L.U. Barcelona ES 100.00
Schaeffler Finland Oy Espoo FI 100.00
FAG France SAS Chatillon FR 100.00
Schaeffler Chain Drive Systems SAS Calais FR 100.00
Schaeffler France SAS Haguenau FR 100.00
LuK (Hereford) Limited Hereford GB 100.00
LuK (UK) Limited Sheffield GB 100.00
LuK Leamington Limited Leamington Spa. GB 100.00
Schaeffler (UK) Limited Sutton Coldfield GB 100.00
Schaeffler Automotive Aftermarket (UK) Limited Hereford GB 100.00
Stocklook Limited Swansea GB 100.00
The Barden Corporation (UK) Ltd. Plymouth GB 100.00
Schaeffler Hong Kong Company Limited Hong Kong HK 100.00
Schaeffler Hrvatska d.o.o. Zagreb HR 100.00
FAG Magyarorszag Ipari Kft. Debrecen HU 100.00
LUK Savaria Kft. Szombathely HU 100.00
Schaeffler Magyarorszag Ipari Kft. Budapest HU 100.00
Schaeffler Bearings Indonesia, PT Jakarta ID 100.00
FAG Bearings India Ltd. Baroda IN 51.33
FAG Roller Bearings Private Ltd. Baroda IN 87.83
INA Bearings India Private Limited Pune IN 100.00
LuK India Private Limited Madras IN 100.00
FAG Railway Products G.e.i.e. Milan IT 75.00
Schaeffler Italia S.r.l. Momo IT 100.00
Schaeffler Japan Co., Ltd. Yokohama JP 100.00
Schaeffler Ansan Corporation Ansan-shi KR 100.00
Schaeffler Korea Corporation Seoul KR 100.00
INA Mexico S.A. de C.V. Mexico City MX 100.00
LuK Puebla, S.A. de C.V. Puebla MX 100.00
Rodamientos FAG S.A. de C.V. Mexico City MX 100.00
Schaeffler Automotive Aftermarket Mexico, S.A. de C.V. Puebla MX 100.00
Schaeffler Mexico Holding, S. de R.L. de C.V. Guanajuato MX 100.00
Schaeffler Mexico Servicios, S. de R.L. de C.V. Guanajuato MX 100.00
Schaeffler Mexico, S. de R.L. de C.V. Guanajuato MX 100.00
Schaeffler Bearings (Malaysia) Sdn. Bhd. Kuala Lumpur MY 100.00
Radine B.V. Barneveld NL 100.00
Schaeffler Finance B.V. Barneveld NL 100.00
Schaeffler Nederland B.V. Barneveld NL 100.00
Schaeffler Nederland Holding B.V. Barneveld NL 100.00
LuK Norge AS Oslo NO 100.00
Schaeffler Norge AS Oslo NO 100.00
Schaeffler Philippines Inc. Makati City PH 100.00
Schaeffler Polska Sp. z.o.o. Warsaw PL 100.00
Gestfag SGPS. LDA Caldas da Rainha PT 100.00
INA Rolamentos Lda. Porto PT 100.00
Schaeffler Portugal S.A. Caldas da Rainha PT 100.00
SC Schaeffler Romania S.R.L. Brasov RO 100.00
Schaeffler Russland GmbH Moscow RU 100.00
Schaeffler Sverige AB Arlandastad SE 100.00
Schaeffler (Singapore) Pte. Ltd. Singapore SG 100.00
Schaeffler Slovenija d.o.o. Maribor SI 100.00
INA Kysuce, a.s. Kysucke Nove Mesto SK 100.00
INA Skalica spol. s.r.o. Skalica SK 100.00
Schaeffler Slovensko spol s.r.o. Kysucke Nove Mesto SK 100.00
Schaeffler (Thailand) Co., Ltd. Bangkok TH 49.00
Schaeffler Holding (Thailand) Co., Ltd. Bangkok TH 49.00
Schaeffler Manufacturing (Thailand) Co., Ltd. Rayong TH 100.00
Schaeffler Rulmanlari Ticaret Ltd. Sti. Istanbul TR 100.00
Schaeffler Taiwan Co., Ltd. Taipei TW 100.00
Schaeffler Ukraine GmbH Kiev UA 100.00
FAG Bearings LLC Danbury US 100.00
FAG Holding LLC Danbury US 100.00
FAG Interamericana A.G. Miami US 100.00
LMC Bridgeport, Inc. Danbury US 100.00
LuK Clutch Systems, LLC Wooster US 100.00
LuK Transmission Systems LLC Wooster US 100.00
LuK USA LLC Wooster US 100.00
LuK-Aftermarket Services, LLC Valley City US 100.00
Schaeffler Group USA, Inc. Fort Mill US 100.00
The Barden Corporation Danbury US 100.00
Schaeffler Venezuela, C.A. Valencia VE 100.00
Schaeffler Vietnam Co., Ltd. Ho Chi Minh City VN 100.00
ABCOM Holdings (Proprietary) Limited Port Elizabeth ZA 100.00
INA Bearing (Pty) Ltd. Port Elizabeth ZA 100.00
Schaeffler South Africa (Pty.) Ltd. Johannesburg ZA 100.00
B. Associated companies/Joint ventures
I. Germany (5)
Contitech-INA Beteiligungsgesellschaft mbH 1) Hanover DE 50.00
Contitech-INA GmbH & Co. KG 1) Hanover DE 50.00
IFT Ingenieurgesellschaft fuer Triebwerkstechnik mbh Clausthal-Zellerfeld DE 49.00
PStec Automation and Service GmbH Niederwerrn DE 40.00
Schaeffler Beteiligungsholding GmbH & Co. KG 1) 2) Herzogenaurach DE 100.00
II. Foreign (4)
Eurings Rt. Debrecen HU 37.00
Endorsia International AB Gothenburg SE 30.00
Colinx, LLC Greenville US 25.00
Roland Corporate Housing LLC Cheraw US 49.00
C. Entities not consolidated and investments
I. Germany (11)
Bauverein Schweinfurt eG Schweinfurt DE 0.05
GKS – Gemeinschaftskraftwerk Schweinfurt GmbH Schweinfurt DE 10.31
GSB Sonderabfall-Entsorgung Bayern GmbH Baar-Ebenhausen DE 0.18
GURAS Beteiligungs GmbH Pullach DE 1.00
IAV GmbH Ingenieurgesellschaft Auto und Verkehr Berlin DE 10.00
PARTSLIFE Recycling Systems GmbH Neu-Isenburg DE 9.68
SupplyOn AG Hallbergmoos DE 15.25
TECCOM GmbH Ismaning DE 1.70
TECDOC Informations System GmbH Cologne DE 3.03
twin-gears AG i. L. 3) Schweinfurt DE 100.00
Wohnungsbaugenossenschaft Hammelburg eG Hammelburg DE 3.00
II. Foreign (1)
Consolidated Bearings Co. Ltd. Cedar Knolls US 10.00
1) Joint ventures accounted for using the equity method.
2) Schaeffler Beteiligungsholding GmbH & Co. KG holds 36,14 % of the voting interest in Continental AG, Hanover.
3) Further details omitted in accordance with section 313 (2)(4)(3) HGB.

5.10 Preparation of consolidated financial statements

The statutory board of directors of Schaeffler AG prepared the consolidated financial statements on March 13, 2012 and released them for submission to the supervisory board. The supervisory board is responsible for examining and approving the consolidated financial statements.

Herzogenaurach, March 13, 2012

The Executive Board