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2024 Annual Report

Unlocking New Strengths.

2024 Annual Report

 

Structure of the Continental Group

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Automotive, Tires and ContiTech: the three strong pillars of the Continental Group.

Organizational structure

The Continental Group is divided into four group sectors: Automotive, Tires, ContiTech and Contract Manufacturing. Since November 1, 2024, these have comprised a total of 15 business areas.

A group sector or business area with overall responsibility for a business, including its results, is classified according to product requirements, market trends, customer groups and distribution channels.

Business responsibility

Overall responsibility for managing the company lies with the Executive Board of Continental Aktiengesellschaft (AG). The Automotive, Tires and ContiTech group sectors are each represented on the Executive Board.

Spanning the group sectors are the group functions of Continental AG, which are represented by the chairman of the Executive Board, the chief financial officer and the chief HR officer. These functions include Finance and Controlling, Integrity and Law, Compliance, Internal Audit, Quality Management, Human Relations, Sustainability, IT and Group Purchasing.

Customer structure

With a 62% share of consolidated sales, the automotive industry – with the exception of the replacement business – is our most important customer group. This industry is particularly important for the growth of the Automotive group sector. In the Tires group sector, sales to dealers and end users represent the largest share of the tire-replacement business. In the ContiTech group sector, the customer base is made up of the energy, agriculture and construction industries, interior design and the automotive and replacement businesses. In the Contract Manufacturing group sector, the Schaeffler Group/Vitesco Technologies (until the merger on October 1, 2024) constitutes the sole customer.

518 locations in 55 countries and markets

518 locations in 55 countries and markets

Companies and locations

Continental AG is the parent company of the Continental Group. In addition to Continental AG, the Continental Group comprises 477 companies, including non-controlled companies. The Continental team is made up of 190,159 employees at 518 locations for production, research and development, and administration in 55 countries and markets. Added to this are distribution locations, with 848 company-owned tire outlets and a total of around 5,600 franchises and operations with a Continental brand presence.

Structure of the Continental Group in 2024

Structure of the Continental Group in 2024

The Automotive group sector offers technologies for safety, brake, chassis, motion and motion-control systems. Its portfolio also includes innovative solutions for assisted and automated driving, display and operating technologies, camera solutions for the vehicle interior as well as intelligent information and communication technology associated with the mobility services of fleet operators and commercial vehicle manufacturers. Comprehensive activities relating to vehicle connectivity, architecture and electronics, as well as high-performance computers and software solutions, round off the range of products and services.

Since November 1, 2024, the group sector has been divided into four business areas:

  • Architecture and Network Solutions (formerly Architecture and Networking)
  • Autonomous Mobility
  • Safety and Motion
  • User Experience

The former Software and Central Technologies business area was discontinued effective November 1, 2024, and has since been included in the Automotive group sector.

The Tires group sector offers a premium portfolio of innovative tire solutions for the passenger car, truck, bus, two-wheeler and specialty segment, as well as intelligent products and services related to tires and the promotion of sustainability. For specialist dealers and fleet managers, Tires provides digital tire monitoring and tire management systems, in addition to other services, which keep fleets mobile and increase their efficiency. With its tires, the group sector contributes to safe, efficient and environmentally friendly mobility. In the reporting year, 24% of sales in Tires related to business with vehicle manufacturers, and 76% related to the tirere-placement business. The group sector is divided into five business areas:

  • Original Equipment
  • Replacement APAC
  • Replacement EMEA
  • Replacement The Americas
  • Specialty Tires

The ContiTech group sector draws on its materials expertise to develop solutions for industrial applications made from rubber, metal and textiles. Its broad portfolio of hoses, conveyor belts, air springs and drive belts is designed for the operating conditions in industrial environments, which can be challenging. At the same time, ContiTech offers surface materials with an appealing look and feel for home and vehicle interiors. ContiTech’s industrial growth areas are primarily in energy, mining, agriculture and construction, as well as exterior and interior design. In the reporting year, 44% of sales in ContiTech related to business with automotive manufacturers, and 56% to business with other industries and in the automotive replacement market. The group sector is divided into five business areas:

  • Industrial Solutions Americas
  • Industrial Solutions APAC
  • Industrial Solutions EMEA
  • Original Equipment Solutions
  • Surface Solutions

The contract manufacturing of products by Continental companies for the Schaeffler Group/Vitesco Technologies (until the merger on October 1, 2024) is consolidated in the Contract Manufacturing group sector. This contract manufacturing is not intended to be a permanent situation; rather, the operational separation of production will continue to be promoted and the volume of contract manufacturing reduced. Contract Manufacturing includes one business area:

  • Contract Manufacturing

Globally interconnected value creation

Research and development (R&D) took place at 91 locations in the reporting year, predominantly in close proximity to our customers to ensure that Continental can respond flexibly to their various requirements and to regional market conditions. This applies particularly to projects of the Automotive and ContiTech group sectors. In the Tires group sector, R&D is largely centrally organized, since product requirements for tires are much the same across the world. They are adapted according to the specific requirements of each market. Continental generally invests around 7% of sales in R&D each year. For more information, see the Research and Development section.

Continental processes a wide range of raw materials and semi-finished products. The purchasing volume in the reporting year was €26.6 billion in total, €18.0 billion of which was for production materials. Electronics and electromechanical components together make up around 43% of the Continental Group’s purchasing volume for production materials, which are primarily used in the Automotive and Contract Manufacturing group sectors, while mechanical components account for around 20%. Natural rubber and oil-based chemicals as well as synthetic rubber and carbon black are key raw materials for the Tires and ContiTech group sectors. The total purchasing volume for these materials likewise amounts to around 23% of the total volume for production materials. For more information, see the Development of Raw Materials Markets section in the economic report.

Production and sales in the Automotive and ContiTech group sectors are organized across regions. For the Tires group sector, economies of scale play a key role when it comes to tire manufacturing. Low production costs coupled with large volumes and proximity to our customers or high rates of regional growth constitute key success factors. For this reason, manufacturing takes place at major locations in the dominant automotive markets, namely Europe, the USA and China. Tires are sold worldwide via our dealer network with tire outlets and franchises, as well as through tire trading in general.

Globally interconnected value creation

Globally interconnected value creation

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