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2025 Annual Report

Charting New Paths.

2025 Annual Report

 

Consolidated Statement of Cash Flows

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The spin-off of the former Automotive and Contract Manufacturing segments resulted in the application of IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. These parts represent discontinued operations.

The individual lines of the consolidated statement of cash flows show the figures for continuing operations in the reporting and comparative periods. In addition, the subtotals for cash flow from operating activities, cash flow from investing activities, cash flow from financing activities and cash flow before financing activities (free cash flow) for the Continental Group are broken down into continuing and discontinued operations. This results in greater transparency for fiscal 2025 and its comparative period compared with the last presentation of discontinued operations in accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, in fiscal 2021.

€ millions 2025 2024
Earnings after tax from continuing operations –415 1,358
Income tax expense 384 398
Financial result 303 287
EBIT 272 2,043
Interest paid –293 –320
Interest received 68 67
Income tax paid –562 –557
Dividends received 9 6
Depreciation, amortization, impairment and reversal of impairment losses 1,586 1,111
Income from equity-accounted investees and other investments, incl. impairment and reversal of impairment losses –11 –6
Gains/losses from the disposal of assets, companies and business operations 676 –3
Changes in
inventories 89 –97
trade accounts receivable 17 –25
trade accounts payable –337 53
employee benefits and other provisions  349 –130
other assets and liabilities1 as well as other non-cash effects 152 –514
Cash flow from operating activities – continuing operations 2,014 1,628
Cash flow from operating activities – discontinued operations 179 1,306
Cash flow from operating activities 2,193 2,934
Capital expenditure on property, plant and equipment, and software –1,072 –1,056
Capital expenditure on intangible assets from development projects and miscellaneous –3 0
Disposal of property, plant and equipment, and intangible assets 19 26
Acquisition of companies and business operations 0 1
Disposal of companies and business operations 9 4
Cash flow from investing activities – continuing operations –1,047 –1,026
Cash flow from investing activities – discontinued operations –371 –795
Cash flow from investing activities –1,418 –1,821
     
Cash flow before financing activities (free cash flow) – continuing operations 967 603
Cash flow before financing activities (free cash flow) – discontinued operations –192 511
Cash flow before financing activities (free cash flow) 775 1,114
Issuance of bonds 1,363 600
Redemption of bonds –602 –725
Repayment of lease liabilities –222 –216
Change in other indebtedness –249 –264
Change in derivative instruments and interest-bearing investments 12 –45
Other cash changes –11 –3
Successive purchases –1 0
Dividends paid –500 –440
Dividends paid to and cash changes from equity transactions with non-controlling interests –21 –11
Cash flow from financing activities – continuing operations –231 –1,103
Cash flow from financing activities – discontinued operations 95 31
Cash flow from financing activities –135 –1,072
Change in cash and cash equivalents 640 42
Cash and cash equivalents at the beginning of the reporting period 2,966 2,923
Disposal/addition of cash and cash equivalents through changes in the scope of consolidation 0 –3
Effect of exchange-rate changes on cash and cash equivalents –181 3
Cash and cash equivalents – continuing and discontinued operations 3,425 2,966
Less cash and cash equivalents – discontinued operations at the date of disposal –1,798
Less cash and cash equivalents – assets held for sale –124
Cash and cash equivalents at the end of the reporting period according to the items on the statement of financial position 1,503 2,966
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1 The figure for the comparative period mainly includes the cash outflow from the payment of €476 million for the shares in ContiTech AG (now operating under the name ContiTech Deutschland GmbH) acquired in 2022. The addition to plan assets in 2022, which was netted with the associated obligations to employees, was offset by a liability that was paid out in the first half of 2024 (please refer to Notes 29 and 34 to the consolidated financial statements in the 2022 annual report). As changes in employee benefits are allocated to cash flow from operating activities in the statement of cash flows, the payment of the liability was also allocated to this item and presented in changes to other assets and liabilities and other non-cash effects.

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