6. Discontinued Operations
With the approval of the Annual Shareholders’ Meeting on April 25, 2025, Continental resolved the spin-off of the former Automotive and Contract Manufacturing segments. For the parts spun off, the criteria of IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, for recognition as discontinued operations were met with the approval of the Supervisory Board on March 12, 2025.
The spin-off became effective upon registration in the commercial registers of Continental AG and AUMOVIO SE on September 17, 2025. AUMOVIO SE was admitted to trading on the Frankfurt Stock Exchange on September 18, 2025. For the discontinued operations, in accordance with IFRS 5, all expenses and income are recognized separately in the income statement, and the figures for the comparative period have been adjusted accordingly. 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 investment 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 in fiscal 2021. In the statement of financial position, the assets and liabilities attributed to the discontinued operations are recognized separately up to the date of the spin-off. Upon classification as held for sale, the depreciation of assets within discontinued operations was ceased.
The loss of control by Continental led to a derecognition of the net assets of Aumovio and to the reclassification of components of other comprehensive income. The carrying amount of the spun off net assets at the time of the spin-off amounted to €10,014 million. The disposal was recorded against the liability arising from the non-cash dividend. The reclassification of corresponding components of other comprehensive income led to a loss of €680 million. In addition, an amount of €223 million was reclassified to revenue reserves not recognized in profit or loss. The reclassification mainly relates to the remeasurement of defined benefit plans. As a result of the spin-off, the number of companies consolidated decreased by 112 fully consolidated companies and 47 equity-accounted investees.
The assets and liabilities of discontinued operations at the time of the spin-off are shown below:
€ millions |
Sep. 17, 2025 |
Goodwill |
2,092 |
Other intangible assets |
392 |
Property, plant and equipment |
5,300 |
Investment property |
2 |
Investments in equity-accounted investees |
191 |
Other investments |
80 |
Deferred tax assets |
1,453 |
Defined benefit assets |
58 |
Long-term derivative instruments and interest-bearing investments |
3 |
Long-term other financial assets |
190 |
Long-term other assets |
18 |
inventories |
2,461 |
Trade accounts receivable |
3,338 |
Short-term contract assets |
94 |
Short-term other financial assets |
39 |
Short-term other assets |
552 |
Income tax receivables |
140 |
Short-term derivative instruments and interest-bearing investments |
11 |
Cash and cash equivalents |
1,798 |
Assets held for sale |
38 |
Long-term employee benefits |
–1,316 |
Deferred tax liabilities |
–124 |
Long-term provisions for other risks and obligations |
–366 |
Long-term indebtedness |
–238 |
Long-term other financial liabilities |
0 |
Long-term contract liabilities |
–42 |
Long-term other liabilities |
–13 |
Short-term employee benefits |
–689 |
Trade accounts payable |
–3,409 |
Short-term contract liabilities |
–119 |
Income tax payables |
–99 |
Short-term provisions for other risks and obligations |
–633 |
Short-term indebtedness |
–479 |
Short-term other financial liabilities |
–431 |
Short-term other liabilities |
–328 |
Liabilities held for sale |
–59 |
Subtotal |
9,907 |
Other changes in disposed net assets |
106 |
Total carrying amount of net assets as at Sep. 17, 2025 |
10,014 |
Earnings from discontinued operations are as follows:
€ millions |
2025 |
2024 |
Sales |
13,415 |
19,642 |
Expenses |
–12,919 |
–19,509 |
Earnings before tax from discontinued operations |
495 |
132 |
Income tax expense |
–215 |
–291 |
Earnings after tax from discontinued operations |
280 |
–159 |
