Quarterly Report • Nov 12, 2024
Quarterly Report
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Consolidated sales of $€ 9.8$ billion (Q3 2023: $€ 10.2$ billion, -4.0 percent)
$\checkmark$ Adjusted EBIT of $€ 873$ million (Q3 2023: $€ 642$ million, +36.0 percent)
$\checkmark$ Adjusted EBIT margin of 8.9 percent (Q3 2023: 6.3 percent)
$\checkmark$ Net income of $€ 486$ million (Q3 2023: $€ 299$ million, +62.8 percent)
$\checkmark$ Adjusted free cash flow of $€ 323$ million (Q3 2023: $€ 466$ million, -30.6 percent)
$\checkmark$ Outlook: Continental confirms outlook for Automotive and Tires and lowers sales and earnings outlook for ContiTech
Continental increased its earnings in the third quarter of 2024, as expected. In particular, the Automotive group sector made progress thanks to the measures taken to improve earnings, and it aims to make further gains in its adjusted operating result (adjusted EBIT) in the fourth quarter. As in the second quarter of 2024, the Tires group sector posted a good adjusted EBIT on the back of improved business in Europe, boosted not least by encouraging early sales of winter tires. Earnings in the ContiTech group sector, by contrast, were dented by continued weak industrial development in Europe and North America. Continental does not expect the industrial business to recover in the fourth quarter and is therefore adjusting its sales and earnings outlook for ContiTech. As a result, sales expectations have also been lowered for the Continental Group as a whole.
Continental continues to develop, both strategically and operationally. It is making its group sectors more agile and bringing them closer to the markets. These group sectors are now ready for greater independence. Automotive is on track to fulfill the requirements for a spinoff by the end of 2025. This spinoff is still being evaluated. In the third quarter. Continental increased its adjusted EBIT, both year-on-year and compared with the first two quarters of 2024. This was largely driven by price adjustments and disciplined cost management.
The global production of passenger cars and light commercial vehicles in the third quarter of 2024 was down sharply on the previous year, falling by around 5 percent year-on-year to 21.6 million units (Q3 2023: 22.6 million units). At around 3.6 million units, vehicle production in Europe from July to September 2024 was significantly lower than the prior-year period (-6 percent). Production in North America also fell, amounting in the third quarter to around 3.8 million vehicles (-5 percent). China likewise posted a decline, producing around 7.3 million vehicles in the third quarter of 2024 (-3 percent).
In the third quarter of 2024, Continental achieved consolidated sales of $€ 9.8$ billion (Q3 2023: $€ 10.2$ billion, -4.0 percent). Its adjusted operating result increased to $€ 873$ million (Q3 2023: $€ 642$ million, +36.0 percent), corresponding to an adjusted EBIT margin of 8.9 percent (Q3 2023: 6.3 percent). Net income attributable to the shareholders of the parent in the third quarter amounted to $€ 486$ million (Q3 2023: €299 million, +62.8 percent). Adjusted free cash flow was $€ 323$ million (Q3 2023: €466 million, -30.6 percent).
Continental posted good results for the third quarter. The Automotive group sector improved its earnings as announced. Tires is performing well in terms of profitability. But ContiTech continues to contend with a weak industrial environment in Europe and North America. Nevertheless, the process of making the business area with ContiTech products for the automotive industry independent is progressing as planned. As announced, Continental will present the Original Equipment Solutions (OESL) business area to potential buyers and partners in the fourth quarter of this year.
Continental has reached an agreement with Vitesco Technologies regarding the allocation of costs from the investigations in connection with the supply of engine control units and engine control software. The associated payment of $€ 125$ million by Vitesco Technologies had a positive impact on net income and free cash flow in the third quarter of 2024.
In the Automotive group sector, sales fell by 4.7 percent to $€ 4.8$ billion, hampered primarily by declining markets (Q3 2023: €5.0 billion). The adjusted EBIT margin improved significantly year-on-year to 4.2 percent (Q3 2023: 2.8 percent). This was due in large part to the rigorous implementation of measures to reduce costs and improve efficiency, as well as to additional agreements from price negotiations with automotive manufacturers. Continental expects adjusted EBIT to improve further in the fourth quarter, spurred not only by further cost reductions, but also by anticipated higher production volumes worldwide than in the previous quarter, launches of new products by our customers, and reimbursements of development expenses.
The Tires group sector performed well in the third quarter, generating sales of $€ 3.5$ billion (Q3 2023: €3.4 billion, +1.9 percent). At 14.5 percent, its adjusted EBIT margin was up on the previous year (Q3 2023: 13.3 percent). This trend was driven by improved business in Europe, boosted not least by encouraging early sales of winter tires.
The ContiTech group sector posted sales of $€ 1.5$ billion in the third quarter (Q3 2023: €1.7 billion, -9.9 percent). Its adjusted EBIT margin was 4.5 percent (Q3 2023: 6.5 percent). The decline in earnings was mainly attributable to weak industrial demand in Europe and North America. The operating result of the OESL business area improved, remaining slightly positive, thanks to the implemented measures.
Sales in the Contract Manufacturing group sector were $€ 48$ million in the third quarter of 2024 (Q3 2023: €115 million), and the adjusted EBIT margin was 2.3 percent (Q3 2023: -7.4 percent).
For 2024 as a whole, Continental expects the production of passenger cars and light commercial vehicles to decrease year-on-year. We expect demand in the tire-replacement business to pick up slightly in the second half of 2024 compared with the first six months, while the industrial business worldwide is expected to remain sluggish.
Based on the assumptions mentioned as well as current exchange rates, Continental expects the following key financial figures for fiscal 2024:
} We expect the Continental Group to achieve sales in the range of around $€ 39.5$ billion to $€ 42.0$ billion (previously: $€ 40.0$ billion to $€ 42.5$ billion) and an adjusted EBIT margin of around 6.0 to 7.0 percent.
$\checkmark$ We expect our Automotive group sector to achieve sales of around $€ 19.5$ billion to $€ 21.0$ billion and an adjusted EBIT margin of around 2.5 to 3.5 percent.
$\checkmark$ We expect our Tires group sector to achieve sales of around $€ 13.5$ billion to $€ 14.5$ billion and an adjusted EBIT margin of around 13.0 to 14.0 percent.
$\checkmark$ We expect our ContiTech group sector to achieve sales of around $€ 6.2$ billion to $€ 6.6$ billion (previously: $€ 6.6$ billion to $€ 7.0$ billion) and an adjusted EBIT margin of around 5.8 to 6.3 percent (previously: 6.5 to 7.0 percent).
$\checkmark$ In our Contract Manufacturing group sector, we anticipate sales of around $€ 200$ million to $€ 300$ million and an adjusted EBIT margin of around 0 percent.
$\checkmark$ Consolidated amortization from purchase price allocations is expected to be around $€ 100$ million and affect mainly the Automotive and ContiTech group sectors.
$\checkmark$ In addition, we expect negative special effects of around $€ 350$ million.
$\checkmark$ In 2024, we expect the negative financial result to be around $€ 350$ million before effects from currency translation, effects from changes in the fair value of derivative instruments, and other valuation effects.
$\checkmark$ The capital expenditure ratio is expected to be around 6.0 to 7.0 percent of sales in fiscal 2024.
$\checkmark$ In 2024, we are planning on adjusted free cash flow of approximately $€ 0.6$ billion to $€ 1.0$ billion.
$\checkmark$ The tax rate is expected to be around 30 percent (previously: 27 percent). The higher calculated tax rate compared with the previous assumption is mainly due to the allocation of net income to the different countries in relation to comprehensive income. Tax charges that are not directly dependent on income also continue to have an effect. These include foreign (minimum) taxes with deviating bases of assessment as well as foreign withholding taxes that are not deductible in Germany.
Added to this are tax risks in connection with ongoing criminal tax investigations by Italian authorities (see page 105 of the 2023 annual report). As a precautionary measure, Continental has set aside provisions for likely financial charges in this regard. The investigations relate to a possible failure by the Continental companies concerned to comply with the declaration requirements of the Italian financial authorities. According to the authorities, Continental should have paid taxes in Italy for the operations in question, which it instead paid in other European countries between 2016 and 2023.
| Continental Group in € millions | January 1 to September 30 | Third Quarter | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Sales | 29,624 | 30,972 | 9,833 | 10,240 |
| EBITDA | 3,057 | 2,990 | 1,302 | 1,000 |
| in \% of sales | 10.3 | 9.7 | 13.2 | 9.8 |
| EBIT | 1,414 | 1,369 | 751 | 461 |
| in \% of sales | 4.8 | 4.4 | 7.6 | 4.5 |
| Net income attributable to the shareholders of the parent | 738 | 889 | 486 | 299 |
| Basic earnings per share in $€$ | 3.69 | 4.45 | 2.43 | 1.49 |
| Diluted earnings per share in $€$ | 3.69 | 4.45 | 2.43 | 1.49 |
| Research and development expenses (net) | 2,342 | 2,271 | 714 | 723 |
| in \% of sales | 7.9 | 7.3 | 7.3 | 7.1 |
| Depreciation and amortization ${ }^{1}$ | 1,643 | 1,621 | 550 | 539 |
| thereof impairment ${ }^{2}$ | 21 | 11 | 11 | 2 |
| Capital expenditure ${ }^{3}$ | 1,416 | 1,526 | 507 | 586 |
| in \% of sales | 4.8 | 4.9 | 5.2 | 5.7 |
| Operating assets as at September 30 | 20,174 | 21,178 | ||
| Number of employees as at September $30^{4}$ | 194,961 | 203,593 | ||
| Adjusted sales ${ }^{5}$ | 29,585 | 30,935 | 9,832 | 10,237 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 1,773 | 1,717 | 873 | 642 |
| in \% of adjusted sales | 6.0 | 5.5 | 8.9 | 6.3 |
| Free cash flow | $-623$ | $-622$ | 317 | 467 |
| Net indebtedness as at September 30 | 5,349 | 5,715 | ||
| Gearing ratio in \% | 37.7 | 39.2 |
1 Excluding impairment on financial investments
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment, and software.
4 Excluding trainees.
5 Before changes in the scope of consolidation.
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| Automotive in $\mathbf{€}$ millions | 2024 | 2023 | 2024 | 2023 |
| Sales | 14,561 | 15,177 | 4,792 | 5,029 |
| EBITDA | 689 | 739 | 396 | 251 |
| in \% of sales | 4.7 | 4.9 | 8.3 | 5.0 |
| EBIT | $-124$ | $-26$ | 122 | $-3$ |
| in \% of sales | $-0.9$ | $-0.2$ | 2.5 | $-0.1$ |
| Research and development expenses (net) | 1,944 | 1,885 | 580 | 594 |
| in \% of sales | 13.3 | 12.4 | 12.1 | 11.8 |
| Depreciation and amortization ${ }^{1}$ | 813 | 765 | 274 | 254 |
| thereof impairment ${ }^{2}$ | 17 | 6 | 8 | 1 |
| Capital expenditure ${ }^{3}$ | 665 | 837 | 228 | 322 |
| in \% of sales | 4.6 | 5.5 | 4.8 | 6.4 |
| Operating assets as at September 30 | 9,031 | 9,487 | ||
| Number of employees as at September 30 ${ }^{4}$ | 96,366 | 102,574 | ||
| Adjusted sales ${ }^{5}$ | 14,561 | 15,177 | 4,792 | 5,029 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 131 | 153 | 203 | 142 |
| in \% of adjusted sales | 0.9 | 1.0 | 4.2 | 2.8 |
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| Tires in $\mathbf{€}$ millions | 2024 | 2023 | 2024 | 2023 |
| Sales | 10,183 | 10,351 | 3,495 | 3,429 |
| EBITDA | 1,954 | 1,873 | 697 | 637 |
| in \% of sales | 19.2 | 18.1 | 20.0 | 18.6 |
| EBIT | 1,363 | 1,271 | 500 | 440 |
| in \% of sales | 13.4 | 12.3 | 14.3 | 12.8 |
| Research and development expenses (net) | 260 | 253 | 85 | 85 |
| in \% of sales | 2.6 | 2.4 | 2.4 | 2.5 |
| Depreciation and amortization ${ }^{1}$ | 591 | 602 | 197 | 197 |
| thereof impairment ${ }^{2}$ | 2 | 4 | 1 | 0 |
| Capital expenditure ${ }^{3}$ | 570 | 531 | 215 | 208 |
| in \% of sales | 5.6 | 5.1 | 6.1 | 6.1 |
| Operating assets as at September 30 | 7,754 | 7,794 | ||
| Number of employees as at September 30 ${ }^{4}$ | 57,187 | 56,527 | ||
| Adjusted sales ${ }^{5}$ | 10,183 | 10,314 | 3,495 | 3,426 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 1,391 | 1,386 | 507 | 454 |
| in \% of adjusted sales | 13.7 | 13.4 | 14.5 | 13.3 |
[^0]
[^0]: 1 Excluding impairment on financial investments
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment, and software.
4 Excluding trainees.
5 Before changes in the scope of consolidation.
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| ContiTech in € millions | 2024 | 2023 | 2024 | 2023 |
| Sales | 4,834 | 5,183 | 1,541 | 1,711 |
| EBITDA | 421 | 516 | 110 | 170 |
| in \% of sales | 8.7 | 10.0 | 7.1 | 10.0 |
| EBIT | 198 | 284 | 37 | 90 |
| in \% of sales | 4.1 | 5.5 | 2.4 | 5.3 |
| Research and development expenses (net) | 138 | 133 | 49 | 45 |
| in \% of sales | 2.9 | 2.6 | 3.2 | 2.6 |
| Depreciation and amortization ${ }^{1}$ | 222 | 232 | 73 | 80 |
| thereof impairment ${ }^{2}$ | 2 | 1 | 1 | 1 |
| Capital expenditure ${ }^{3}$ | 167 | 134 | 61 | 47 |
| in \% of sales | 3.5 | 2.6 | 4.0 | 2.7 |
| Operating assets as at September 30 | 3,142 | 3,316 | - | - |
| Number of employees as at September $30^{4}$ | 40,068 | 42,315 | - | - |
| Adjusted sales ${ }^{5}$ | 4,795 | 5,183 | 1,540 | 1,711 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 272 | 337 | 69 | 111 |
| in \% of adjusted sales | 5.7 | 6.5 | 4.5 | 6.5 |
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| Contract Manufacturing in € millions | 2024 | 2023 | 2024 | 2023 |
| Sales | 184 | 405 | 48 | 115 |
| EBITDA | 13 | 26 | 4 | $-3$ |
| in \% of sales | 7.0 | 6.4 | 9.2 | $-2.8$ |
| EBIT | 4 | 7 | 2 | $-9$ |
| in \% of sales | 2.2 | 1.6 | 4.1 | $-7.7$ |
| Research and development expenses (net) | 0 | 0 | 0 | 0 |
| in \% of sales | 0.0 | 0.0 | $-0.1$ | 0.0 |
| Depreciation and amortization ${ }^{1}$ | 9 | 19 | 3 | 6 |
| thereof impairment ${ }^{2}$ | 0 | 0 | - | 0 |
| Capital expenditure ${ }^{3}$ | 2 | 4 | 1 | 2 |
| in \% of sales | 1.3 | 0.9 | 1.9 | 1.3 |
| Operating assets as at September 30 | 49 | 448 | - | - |
| Number of employees as at September $30^{4}$ | 813 | 1,619 | - | - |
| Adjusted sales ${ }^{5}$ | 184 | 405 | 48 | 115 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 3 | 7 | 1 | $-8$ |
| in \% of adjusted sales | 1.7 | 1.7 | 2.3 | $-7.4$ |
1 Excluding impairment on financial investments
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment, and software.
4 Excluding trainees.
5 Before changes in the scope of consolidation.
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.
This quarterly statement was prepared in accordance with the accounting and measurement methods described in the International Financial Reporting Standards (IFRS) applicable at the end of the reporting period and endorsed by the European Union.
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| € millions | 2024 | 2023 | 2024 | 2023 |
| Sales | 29,624 | 30,972 | 9,833 | 10,240 |
| Cost of sales | $-23,156$ | $-24,375$ | $-7,573$ | $-8,130$ |
| Gross margin on sales | 6,468 | 6,597 | 2,260 | 2,110 |
| Research and development expenses | $-3,128$ | $-3,068$ | $-1,024$ | $-1,035$ |
| Selling and logistics expenses | $-1,941$ | $-1,872$ | $-618$ | $-619$ |
| Administrative expenses | $-964$ | $-922$ | $-327$ | $-295$ |
| Other income | 1,353 | 1,172 | 538 | 438 |
| Other expenses | $-404$ | $-562$ | $-86$ | $-148$ |
| Income from equity-accounted investees | 30 | 23 | 8 | 10 |
| Other income from investments | 0 | 1 | 0 | 0 |
| EBIT | 1,414 | 1,369 | 751 | 461 |
| Interest income | 79 | 74 | 28 | 27 |
| Interest expense | $-324$ | $-300$ | $-110$ | $-101$ |
| Effects from currency translation | 18 | 94 | 28 | $-13$ |
| Effects from changes in the fair value of derivative instruments, and other valuation effects | $-41$ | $-39$ | $-20$ | $-27$ |
| Financial result | $-268$ | $-171$ | $-74$ | $-115$ |
| Earnings before tax | 1,146 | 1,198 | 677 | 346 |
| Income tax expense | $-387$ | $-277$ | $-180$ | $-38$ |
| Net income | 759 | 921 | 497 | 308 |
| Non-controlling interests | $-21$ | $-32$ | $-11$ | $-9$ |
| Net income attributable to the shareholders of the parent | 738 | 889 | 486 | 299 |
| Basic earnings per share in € | 3.69 | 4.45 | 2.43 | 1.49 |
| Diluted earnings per share in € | 3.69 | 4.45 | 2.43 | 1.49 |
| January 1 to September 30 | Third Quarter | ||||
|---|---|---|---|---|---|
| € millions | 2024 | 2023 | 2024 | 2023 | |
| Net income | 759 | 921 | 497 | 308 | |
| Items that will not be reclassified to profit or loss | |||||
| Remeasurement of defined benefit plans ${ }^{1}$ | 362 | 302 | $-22$ | 362 | |
| Fair value adjustments ${ }^{1}$ | 362 | 304 | $-33$ | 367 | |
| Investment in equity-accounted investees ${ }^{2}$ | - | 0 | - | 0 | |
| Currency translation ${ }^{1}$ | 0 | $-3$ | 11 | $-6$ | |
| Other investments | $-10$ | $-52$ | $-10$ | 0 | |
| Fair value adjustments ${ }^{1}$ | $-10$ | $-52$ | $-11$ | 0 | |
| Investment in equity-accounted investees ${ }^{2}$ | - | 0 | - | 0 | |
| Currency translation ${ }^{1}$ | 0 | 0 | 1 | 0 | |
| Tax on other comprehensive income | $-95$ | $-82$ | 17 | $-104$ | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Currency translation ${ }^{1}$ | $-476$ | 75 | $-418$ | 99 | |
| Effects from currency translation ${ }^{1}$ | $-481$ | $-6$ | $-418$ | 89 | |
| Reclassification adjustments to profit or loss | 5 | 81 | - | 10 | |
| Investment in equity-accounted investees ${ }^{2}$ | - | 0 | - | 0 | |
| Other comprehensive income | $-220$ | 243 | $-433$ | 356 | |
| Comprehensive income | 539 | 1,163 | 64 | 664 | |
| Attributable to non-controlling interests | $-17$ | $-1$ | $-14$ | $-10$ | |
| Attributable to the shareholders of the parent | 522 | 1,163 | 50 | 653 |
1 Including non-controlling interests.
2 Including taxes.
Assets
| 4 millions | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
|---|---|---|---|
| Goodwill | 3,168 | 3,187 | 3,217 |
| Other intangible assets | 686 | 820 | 865 |
| Property, plant and equipment | 11,384 | 11,722 | 11,536 |
| Investment property | 13 | 11 | 11 |
| Investments in equity-accounted investees | 341 | 299 | 302 |
| Other investments | 109 | 118 | 132 |
| Deferred tax assets | 2,468 | 2,512 | 2,234 |
| Defined benefit assets | 120 | 111 | 106 |
| Long-term derivative instruments and interest-bearing investments | 66 | 89 | 80 |
| Long-term other financial assets | 241 | 272 | 269 |
| Long-term other assets | 20 | 24 | 48 |
| Non-current assets | 18,614 | 19,165 | 18,800 |
| Inventories | 6,441 | 6,276 | 6,881 |
| Trade accounts receivable | 7,941 | 7,569 | 8,596 |
| Short-term contract assets | 122 | 103 | 155 |
| Short-term other financial assets | 108 | 136 | 138 |
| Short-term other assets | 1,136 | 1,144 | 1,182 |
| Income tax receivables | 350 | 305 | 359 |
| Short-term derivative instruments and interest-bearing investments | 150 | 120 | 107 |
| Cash and cash equivalents | 2,131 | 2,923 | 2,228 |
| Assets held for sale | - | 11 | - |
| Current assets | 18,379 | 18,588 | 19,646 |
| Total assets | 36,993 | 37,753 | 38,446 |
| $\boldsymbol{C}$ millions | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
|---|---|---|---|
| Subscribed capital | 512 | 512 | 512 |
| Capital reserves | 4,156 | 4,156 | 4,156 |
| Retained earnings | 11,055 | 10,767 | 10,500 |
| Other comprehensive income | $-1,964$ | $-1,759$ | $-1,046$ |
| Equity attributable to the shareholders of the parent | 13,758 | 13,676 | 14,122 |
| Non-controlling interests | 440 | 449 | 452 |
| Total equity | 14,198 | 14,125 | 14,574 |
| Long-term employee benefits | 2,804 | 3,148 | 2,413 |
| Deferred tax liabilities | 67 | 72 | 90 |
| Long-term provisions for other risks and obligations | 663 | 703 | 702 |
| Long-term indebtedness ${ }^{1}$ | 4,529 | 4,528 | 4,311 |
| Long-term other financial liabilities | 7 | 8 | 10 |
| Long-term contract liabilities | 16 | 6 | 7 |
| Long-term other liabilities | 23 | 28 | 24 |
| Non-current liabilities ${ }^{1}$ | 8,109 | 8,494 | 7,557 |
| Short-term employee benefits | 1,469 | 1,391 | 1,439 |
| Trade accounts payable | 6,145 | 6,875 | 6,753 |
| Short-term contract liabilities | 194 | 195 | 207 |
| Income tax payables | 591 | 541 | 491 |
| Short-term provisions for other risks and obligations | 971 | 1,081 | 979 |
| Short-term indebtedness ${ }^{1}$ | 3,166 | 2,642 | 3,819 |
| Short-term other financial liabilities | 1,241 | 1,670 | 1,731 |
| Short-term other liabilities | 909 | 739 | 895 |
| Current liabilities ${ }^{1}$ | 14,686 | 15,134 | 16,315 |
| Total equity and liabilities | 36,993 | 37,753 | 38,446 |
1 Amendments to IAS 1, Presentation of Financial Statements, clarify the classification of current and non-current liabilities from the 2024 reporting year onward. The comparative periods have been adjusted accordingly.
| January 1 to September 30 | Third Quarter | |||
|---|---|---|---|---|
| € millions | 2024 | 2023 | 2024 | 2023 |
| Net income | 759 | 921 | 497 | 308 |
| Income tax expense | 387 | 277 | 180 | 38 |
| Financial result | 268 | 171 | 74 | 115 |
| EBIT | 1,414 | 1,369 | 751 | 461 |
| Interest paid | $-269$ | $-196$ | $-84$ | $-71$ |
| Interest received | 83 | 84 | 29 | 28 |
| Income tax paid | $-532$ | $-550$ | $-169$ | $-200$ |
| Dividends received | 21 | 23 | 19 | 21 |
| Depreciation, amortization, impairment and reversal of impairment losses | 1,643 | 1,621 | 550 | 539 |
| Income from equity-accounted investees and other investments, incl. impairment and reversal of impairment losses | $-30$ | $-24$ | $-8$ | $-10$ |
| Gains/losses from the disposal of assets, companies and business operations | $-33$ | 63 | $-5$ | 24 |
| Changes in | ||||
| inventories | $-301$ | $-142$ | $-27$ | 199 |
| trade accounts receivable | $-444$ | $-805$ | $-549$ | $-298$ |
| trade accounts payable | $-612$ | $-886$ | $-140$ | $-195$ |
| employee benefits and other provisions | $-75$ | 187 | 74 | 262 |
| other assets and liabilities as well as other non-cash effects ${ }^{1}$ | $-283$ | 47 | 296 | 225 |
| Cash flow arising from operating activities | 583 | 790 | 738 | 985 |
| Capital expenditure on property, plant and equipment, and software | $-1,237$ | $-1,343$ | $-434$ | $-526$ |
| Capital expenditure on intangible assets from development projects and miscellaneous | $-14$ | $-15$ | $-4$ | $-2$ |
| Disposal of property, plant and equipment, and intangible assets | 52 | 71 | 22 | 9 |
| Acquisition of companies and business operations | $-12$ | $-165$ | $-7$ | 0 |
| Disposal of companies and business operations | 4 | 40 | 0 | 1 |
| Cash flow arising from investing activities | $-1,206$ | $-1,412$ | $-422$ | $-519$ |
| Cash flow before financing activities (free cash flow) | $-623$ | $-622$ | 317 | 467 |
| Issuance of bonds | - | 1,250 | - | 500 |
| Redemption of bonds | $-625$ | $-500$ | $-625$ | $-500$ |
| Repayment of lease liabilities | $-234$ | $-229$ | $-77$ | $-74$ |
| Change in other indebtedness | 1,212 | $-268$ | 364 | $-450$ |
| Change in derivative instruments and interest-bearing investments | $-15$ | $-7$ | 5 | 16 |
| Other cash changes | $-5$ | $-8$ | $-2$ | $-2$ |
| Dividends paid | $-440$ | $-300$ | - | - |
| Dividends paid to and cash changes from equity transactions with non-controlling interests | $-23$ | $-23$ | $-7$ | $-3$ |
| Cash flow arising from financing activities | $-130$ | $-84$ | $-341$ | $-512$ |
| Change in cash and cash equivalents | $-753$ | $-706$ | $-24$ | $-46$ |
| Cash and cash equivalents at the beginning of the reporting period | 2,923 | 2,988 | 2,167 | 2,272 |
| Disposal of cash and cash equivalents through changes in the scope of consolidation | $-3$ | - | - | - |
| Effect of exchange-rate changes on cash and cash equivalents | $-37$ | $-54$ | $-11$ | 2 |
| Cash and cash equivalents at the end of the reporting period | 2,131 | 2,228 | 2,131 | 2,228 |
[^0]
[^0]: 1 Mainly includes the cash outflow from the payment of $€ 476$ million for the buyback of shares in ContiTech AG (now operating under the name ContiTech Deutschland GmbH). 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 arising 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.
| Difference from | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Subscribed capital ${ }^{1}$ | Capital reserves | Retained earnings | Successive purchases | remeasurement of defined benefit plans | currency translation | financial instruments ${ }^{2}$ | Total | Non- controlling interests |
Total | |
| As at January 1, 2023 | 512 | 4,156 | 9,911 | $-312$ | $-774$ | $-296$ | 63 | 13,259 | 476 | 13,735 |
| Net income | - | - | 889 | - | - | - | - | 889 | 32 | 921 |
| Other comprehensive income | - | - | - | - | 217 | 105 | $-49$ | 273 | $-31$ | 243 |
| Net profit for the period | - | - | 889 | - | 217 | 105 | $-49$ | 1,163 | 1 | 1,163 |
| Dividends paid/resolved | - | - | $-300$ | - | - | - | - | $-300$ | $-23$ | $-323$ |
| Other changes ${ }^{3}$ | - | - | - | 0 | - | - | - | 0 | $-2$ | $-2$ |
| As at September 30, 2023 | 512 | 4,156 | 10,500 | $-312$ | $-557$ | $-191$ | 14 | 14,122 | 452 | 14,574 |
| As at January 1, 2024 | 512 | 4,156 | 10,767 | $-311$ | $-993$ | $-456$ | 1 | 13,676 | 449 | 14,125 |
| Net income | - | - | 738 | - | - | - | - | 738 | 21 | 759 |
| Other comprehensive income | - | - | - | - | 266 | $-472$ | $-9$ | $-216$ | $-4$ | $-220$ |
| Net profit for the period | - | - | 738 | - | 266 | $-472$ | $-9$ | 522 | 17 | 539 |
| Dividends paid/resolved | - | - | $-440$ | - | - | - | - | $-440$ | $-27$ | $-467$ |
| Other changes ${ }^{3,4}$ | - | - | $-10$ | - | - | - | 10 | 1 | 1 | |
| As at September 30, 2024 | 512 | 4,156 | 11,055 | $-311$ | $-727$ | $-928$ | 2 | 13,758 | 440 | 14,198 |
1 Divided into 200,005,983 (PY: 200,005,983) outstanding shares with dividend and voting rights.
2 The change in the difference arising from financial instruments, including deferred taxes, was due to other investments of €9 million (PY: €49 million)
3 Other changes in non-controlling interests due to changes in the scope of consolidation and capital increases.
4 Due to the change in consolidation method in the reporting year of another investment to an equity-accounted investee, the associated cumulative gain or loss stated in other comprehensive income of €10 million was reclassified to revenue reserves.
| 4 millions | Automotive | Tires | ContiTech | Contract Manufacturing |
Other/ Holding/ Consolidation |
Continental Group |
|---|---|---|---|---|---|---|
| External sales | 14,552 | 10,115 | 4,774 | 183 | - | 29,624 |
| Intercompany sales | 9 | 69 | 60 | 0 | $-138$ | - |
| Sales (total) | 14,561 | 10,183 | 4,834 | 184 | $-138$ | 29,624 |
| EBIT (segment result) | $-124$ | 1,363 | 198 | 4 | $-27$ | 1,414 |
| in \% of sales | $-09$ | 13.4 | 4.1 | 2.2 | - | 4.8 |
| Depreciation and amortization ${ }^{1}$ | 813 | 591 | 222 | 9 | 9 | 1,643 |
| thereof impairment ${ }^{2}$ | 17 | 2 | 2 | 0 | - | 21 |
| Capital expenditure ${ }^{3}$ | 665 | 570 | 167 | 2 | 11 | 1,416 |
| in \% of sales | 4.6 | 5.6 | 3.5 | 1.3 | - | 4.8 |
| Operating assets as at September 30 | 9,031 | 7,754 | 3,142 | 49 | 199 | 20,174 |
| Number of employees as at September 304 | 96,366 | 57,187 | 40,068 | 813 | 527 | 194,961 |
| Adjusted sales ${ }^{5}$ | 14,561 | 10,183 | 4,795 | 184 | $-138$ | 29,585 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 131 | 1,391 | 272 | 3 | $-24$ | 1,773 |
| in \% of adjusted sales | 0.9 | 13.7 | 5.7 | 1.7 | - | 6.0 |
1 Excluding impairment on financial investments.
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment, and software.
4 Excluding trainees.
5 Before changes in the scope of consolidation.
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.
| 4 millions | Automotive | Tires | ContiTech | Contract Manufacturing |
Other/ Holding/ Consolidation |
Continental Group |
|---|---|---|---|---|---|---|
| External sales | 15,172 | 10,271 | 5,125 | 404 | - | 30,972 |
| Intercompany sales | 6 | 80 | 58 | 1 | $-144$ | - |
| Sales (total) | 15,177 | 10,351 | 5,183 | 405 | $-144$ | 30,972 |
| EBIT (segment result) | $-26$ | 1,271 | 284 | 7 | $-167$ | 1,369 |
| in \% of sales | $-02$ | 12.3 | 5.5 | 1.6 | - | 4.4 |
| Depreciation and amortization ${ }^{1}$ | 765 | 602 | 232 | 19 | 3 | 1,621 |
| thereof impairment ${ }^{2}$ | 6 | 4 | 1 | 0 | - | 11 |
| Capital expenditure ${ }^{3}$ | 837 | 531 | 134 | 4 | 20 | 1,526 |
| in \% of sales | 5.5 | 5.1 | 2.6 | 0.9 | - | 4.9 |
| Operating assets as at September 30 | 9,487 | 7,794 | 3,316 | 448 | 134 | 21,178 |
| Number of employees as at September 304 | 102,574 | 56,527 | 42,315 | 1,619 | 558 | 203,593 |
| Adjusted sales ${ }^{5}$ | 15,177 | 10,314 | 5,183 | 405 | $-144$ | 30,935 |
| Adjusted operating result (adjusted EBIT) ${ }^{6}$ | 153 | 1,386 | 337 | 7 | $-166$ | 1,717 |
| in \% of adjusted sales | 1.0 | 13.4 | 6.5 | 1.7 | - | 5.5 |
[^0]
[^0]: 1 Excluding impairment on financial investments.
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment, and software.
4 Excluding trainees.
5 Before changes in the scope of consolidation.
6 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.
| Contract Manufacturing |
Other/ Holding/ Consolidation |
Continental Group |
||||
|---|---|---|---|---|---|---|
| Sales | 14,561 | 10,183 | 4,834 | 184 | $-138$ | 29,624 |
| Changes in the scope of consolidation ${ }^{1}$ | - | - | $-40$ | - | - | $-40$ |
| Adjusted sales | 14,561 | 10,183 | 4,795 | 184 | $-138$ | 29,585 |
| EBITDA | 689 | 1,954 | 421 | 13 | $-19$ | 3,057 |
| Depreciation and amortization ${ }^{2}$ | $-813$ | $-591$ | $-222$ | $-9$ | $-9$ | $-1,643$ |
| EBIT | $-124$ | 1,363 | 198 | 4 | $-27$ | 1,414 |
| Amortization of intangible assets from purchase price allocation (PPA) | 42 | 4 | 36 | - | - | 83 |
| Changes in the scope of consolidation ${ }^{1}$ | - | $-1$ | 0 | - | - | $-1$ |
| Special effects | ||||||
| Impairment on goodwill | - | - | - | - | - | - |
| Impairment ${ }^{3}$ | 16 | 0 | 0 | 0 | - | 16 |
| Restructuring ${ }^{4}$ | 177 | 2 | 7 | $-1$ | - | 184 |
| Restructuring-related expenses | 11 | 16 | 1 | 0 | - | 28 |
| Severance payments | 20 | 5 | 15 | 0 | 3 | 44 |
| Gains and losses from disposals of companies and business operations ${ }^{5}$ | $-19$ | 3 | - | - | - | $-16$ |
| Other ${ }^{6}$ | 8 | $-1$ | 14 | - | - | 21 |
| Adjusted operating result (adjusted EBIT) | 131 | 1,391 | 272 | 3 | $-24$ | 1,773 |
1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.
2 Excluding impairment on financial investments.
3 Impairment also includes necessary reversals of impairment losses. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.
4 Includes restructuring-related impairment losses totaling €5 million (Automotive €2 million; Tires €2 million, ContiTech €1 million).
5 Includes income of €19 million due to loss of control over a participation and the subsequent change in consolidation method from full consolidation to the equity method in the Automotive segment.
6 Mainly includes expenses in connection with the plans to make the User Experience and Original Equipment Solutions business areas organizationally independent.
| Contract Manufacturing |
Other/ Holding/ Consolidation |
Continental Group |
||||
|---|---|---|---|---|---|---|
| Sales | 15,177 | 10,351 | 5,183 | 405 | $-144$ | 30,972 |
| Changes in the scope of consolidation ${ }^{1}$ | 0 | $-37$ | 0 | $-$ | $-$ | $-37$ |
| Adjusted sales | 15,177 | 10,314 | 5,183 | 405 | $-144$ | 30,935 |
| EBITDA | 739 | 1,873 | 516 | 26 | $-164$ | 2,990 |
| Depreciation and amortization ${ }^{2}$ | $-765$ | $-602$ | $-232$ | $-19$ | $-3$ | $-1,621$ |
| EBIT | $-26$ | 1,271 | 284 | 7 | $-167$ | 1,369 |
| Amortization of intangible assets from purchase price allocation (PPA) | 44 | 5 | 40 | $-$ | $-$ | 89 |
| Changes in the scope of consolidation ${ }^{1}$ | 7 | $-10$ | 1 | $-$ | $-$ | $-3$ |
| Special effects | ||||||
| Impairment on goodwill | $-$ | $-$ | $-$ | $-$ | $-$ | $-$ |
| Impairment ${ }^{3}$ | 6 | 5 | 1 | 0 | $-$ | 12 |
| Restructuring ${ }^{4}$ | 72 | $-1$ | 1 | 0 | $-$ | 72 |
| Restructuring-related expenses | 13 | 18 | 2 | $-$ | $-$ | 33 |
| Severance payments | 11 | 13 | 13 | 0 | 1 | 39 |
| Gains and losses from disposals of companies and business operations | 27 | 73 | $-6$ | 0 | $-$ | 93 |
| Other ${ }^{5}$ | $-$ | 12 | 2 | $-$ | $-$ | 14 |
| Adjusted operating result (adjusted EBIT) | 153 | 1,386 | 337 | 7 | $-166$ | 1,717 |
1 Changes in the scope of consolidation include additions and disposals as part of share and asset deals. Adjustments were made for additions in the reporting year and for disposals in the comparative period of the prior year.
2 Excluding impairment on financial investments.
3 Impairment also includes necessary reversals of impairment losses. It does not include impairment that arose in connection with a restructuring and impairment on financial investments and goodwill.
4 Includes restructuring-related reversals of impairment losses in the Tires segment in the amount of €2 million.
5 Includes allowances for doubtful accounts on accounts receivable and debt waivers from the sale of all Russian operations in the Tires segment and some operations in the ContiTech segment in Russia.
Hanover, October 22, 2024
Continental Aktiengesellschaft
The Executive Board
This quarterly statement has been prepared in euros. Unless otherwise stated, all amounts are shown in millions of euros (€ millions). Please note that differences may arise as a result of the use of rounded amounts and percentages.
| 2024 | |
|---|---|
| Annual Press Conference | March 7 |
| Analyst and Investor Conference Call | March 7 |
| Annual Shareholders' Meeting | April 26 |
| Quarterly Statement as at March 31, 2024 | May 8 |
| Half-Year Financial Report as at June 30, 2024 | August 7 |
| Quarterly Statement as at September 30, 2024 | November 11 |
| 2025 | |
| Annual Press Conference | March 4 |
| Analyst and Investor Conference Call | March 4 |
| Annual Shareholders' Meeting | April 25 |
| Quarterly Statement as at March 31, 2025 | May 6 |
| Half-Year Financial Report as at June 30, 2025 | August 5 |
| Quarterly Statement as at September 30, 2025 | November 6 |
Continental Aktiengesellschaft
Continental-Plaza 1
30175 Hanover, Germany
Phone: +49 511 938-01
Fax: +49 511 938-81770
E-mail: in@contide
Commercial Register of the Hanover Local Court, HR B 3527
All financial reports are available online at:
www.continental-ir.com
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