Continental has outlined its strategic plan to achieve mid-term targets, emphasising a focus on value creation and organisational efficiency. The announcement came during the Capital Market Day held in Hanover.
The sharpened mid-term targets include sales ranging from €51 billion to €56 billion, with an adjusted EBIT margin of approximately 8 to 11 percent. Notably, the company has increased the dividend distribution corridor to around 20 to 40 percent of net income, previously set at around 15 to 30 percent. Continental aims to achieve these targets through a package of cost-reduction measures and portfolio optimisation.
Continental's CEO, Nikolai Setzer, emphasised the company's commitment to becoming a mobility and material technology group for safe, smart, and sustainable solutions. In the Automotive sector, Continental plans to focus on value-creating business areas with high growth potential. The User Experience business area, expected to contribute significantly to consolidated sales, is among the market leaders in display solutions, head-up displays, and digital instrument clusters. The company is also reviewing additional business activities within Automotive, targeting around €1.4 billion in sales for the fiscal year.
Continental aims to significantly reduce costs in the Automotive sector by €400 million annually from 2025, streamlining administrative structures, interfaces, and hierarchy levels. The company plans to lower its share of research and development expenses, targeting less than 10 percent of sales in the medium term.
In the Tyres sector, Continental will continue focusing on stable earnings and operational excellence, leveraging opportunities in sustainability, electric mobility, and digital tyre services. The ContiTech sector will strengthen its strategic focus on industrial business, aiming to increase the share of industrial sales from 55 percent to 80 percent in the medium term.
Continental's CFO, Katja Garcia Vila, affirmed the company's commitment to achieving mid-term targets, highlighting a clear plan for rigorous implementation. The strategic vision is to create value for a better tomorrow, supported by a strong balance sheet and free cash flow.
Continental, founded in 1871, is dedicated to developing pioneering technologies and services for sustainable and connected mobility worldwide. In 2022, the company achieved sales of €39.4 billion, employing around 200,000 people in 57 countries and markets. The company's strategic initiatives aim to navigate the evolving landscape of the automotive industry and position itself as a leader in innovative and sustainable solutions.
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