Dear shareholders,
Continental posted good results for 2024 as a whole and initiated the realignment of the company. Against the backdrop of a weak macroeconomic environment, especially in our core market of Europe, and a global downturn in automotive production, our value-creation strategy is proving effective.
Our results in 2024 show that we achieved our annual targets for the Continental Group:
- We increased our adjusted EBIT margin from 6.1 percent in the previous year to 6.8 percent – a further step toward improving our profitability.
- In the Automotive group sector, we continued to improve despite a challenging market environment, increasing the adjusted EBIT margin to 2.3 percent. This shows that the measures we have taken are having an impact and that Automotive – under the management of Philipp von Hirschheydt – is on the right track.
- The Tires group sector continues to perform strongly. With sales of €13.9 billion, Tires slightly increased its ad-justed EBIT margin year-on-year to 13.7 percent. Tires holds a leading market position in the area of high-performance and sustainable premium tires.
- Faced with a weak automotive and industrial environment, the ContiTech group sector saw a decline in earnings but nonetheless achieved its annual target, with an adjusted EBIT margin of 6.2 percent, thanks to a good fourth quarter. Continental also introduced further measures to strengthen ContiTech.
- Our adjusted free cash flow is slightly higher than expected, at €1.05 billion. This was mainly due to a positive cash contribution from the Automotive group sector, the good tire business and the reduction in inventories.
We could not have achieved this without our more than 190,000 employees. In these times of global transfor-mation and despite the considerable external challenges, they worked hard to achieving the company’s goals. Their commitment deserves the utmost recognition, gratitude and respect from the entire Executive Board.
Together, we have embarked on the implementation phase of our strategic plan. The goal is to tap into our full potential for creating value – in the interests of all our stakeholders.
Over the course of 2024, we further strengthened the independence of our group sectors. Building on a series of acquisitions since the mid-2000s, we have now shaped these technologically and culturally diverse business operations into competitive units. They have matured into independent players that going forward will need to act with greater flexibility and make the most of the extensive entrepreneurial freedom available to them.
- Subject to the approval of the Supervisory Board and the Annual Shareholders’ Meeting of Continental AG, we plan to complete the spin-off of Automotive and Contract Manufacturing. Automotive is to be set up as an independent European company (Societas Europaea, SE) and listed on the Frankfurt stock exchange by the end of 2025.
- To strengthen the independence of Tires and ContiTech, Continental is further expanding the necessary business-related structures in both group sectors. At the same time, the group functions at the holding level are being streamlined, primarily in accordance with the legally required framework conditions.
- The Original Equipment Solutions (OESL) business area within the ContiTech group sector will also become independent prior to its planned sale.
These strategic measures will make our group sectors stronger – and create more value for you.
Continental achieved good results in 2024. And we want you, as our shareholders, to share in this accomplishment. The Executive Board and Supervisory Board will therefore propose a dividend of €2.50 per share to the Annual Shareholders’ Meeting. By doing so, we want to underline our ambition as a worthwhile investment for investors with a focus on sustainability – and express our thanks for your trust in us as a company.
Despite the difficult market environment, we aim to continue our upward trajectory in 2025. We have set the right course and have our strategy to guide us, as we position ourselves to create the highest possible value in the interests of all stakeholders.
Nikolai Setzer
Chairman of the Executive Board
Nikolai Setzer
Chairman of the Executive Board
