Dear shareholders,
After an eventful 2022, Continental can look ahead with confidence. Even though our earnings were impacted by the COVID-19 pandemic, the semiconductor shortage and soaring costs for raw materials, semi-finished products, energy and logistics, we continued to turn change into opportunity and achieved further success with the measures we have implemented across the corporation.
We met the vast majority of our key operational targets in 2022, as shown by our results:
- With sales of €39.4 billion, we exceeded the previous year’s figure of €33.8 billion by around 17 percent.
- The Tires group sector achieved a particularly positive result, even surpassing expectations with an adjusted EBIT margin of 13.1 percent.
- The Automotive group sector also posted pleasing growth in the third and fourth quarters of 2022, outperforming the market. In addition, its order intake was 26 percent higher year-on-year.
- At €200 million, our adjusted free cash flow fell short of expectations. We must improve in this area. The underperformance is attributable to lower-than-expected cash receipts as at the end of the reporting period. Earnings in the ContiTech group sector were also lower than anticipated.
Everything we achieved in 2022 was thanks to the outstanding hard work and commitment of our around 200,000 employees worldwide. They deserve our appreciation, gratitude and respect.
Based on our results for 2022, the Executive Board and Supervisory Board have resolved to propose a dividend of €1.50 per share to the Annual Shareholders’ Meeting.
With this dividend, we are sending a clear signal that Continental is strong and that we are looking ahead with respect, determination and confidence.
There are several key reasons behind this decision:
- We are enjoying good momentum. Market observers predict that global vehicle production could grow by more than 3 percent this year to around 85 million units worldwide.
- We have implemented more focused cost management.
- We have made our procurement and logistics chain even more integrated – including in the electronics sector.
- We have expanded our supplier base, thus enhancing our flexibility.
- We have had successful price negotiations with our customers to limit the consequences of, for example, raw material shortages and the resulting price developments.
- We are focusing even more intensively on the stricter global compliance requirements and have set up an Executive Board function dedicated to dealing with this topic.
Thanks to our corporate structure and focused strategy, we have much greater potential to create value. We already offer our customers the solutions for the mobility of tomorrow, including software-controlled applications for automated and autonomous driving, digital solutions in the industrial business, the latest display technologies, innovative brakes, smart and sustainable tires, as well as innovative surfaces that are used not only in vehicles but also in industry and people’s homes.
As a result, we are sticking to our mid-term targets. For the Continental Group, our aim is to achieve an adjusted EBIT margin of around 8 to 11 percent and a return on capital employed of around 15 to 20 percent.
Even in challenging times, we strive with our products and solutions to make the world a little better – shaping tomorrow’s mobility today.
Nikolai Setzer
Chairman of the Executive Board
Nikolai Setzer
Chairman of the Executive Board
