Why invest in Continental?
Our strategy aims to increase our value creation. This involves systematically analyzing how we can best position our group sectors for success.
The Equity Story of Continental
Increasingly Volatile Environment Requires More Flexibility and Agility
Reasons for the speed of the transformation: the world requires more agile, focused and flexible companies to master the ever-changing environment
- Technological transformation, particularly in the Automotive industry
- New competitors and new customers are challenging the status quo, making markets less predictable and changing end consumer demands
- Affordability of products continues to play a major role
- Worldwide supply chains are under pressure with new trade barriers, geopolitical tensions which impact some of the main markets we operate in
- All of our business are impacted by these developments – however to a different extent and that requires tailor-made answers
Continental is undergoing a significant change progress
- Spin-off of AUMOVIO
- ContiTech: Selling OESL, to create an industry pure play – which we are planning to separate in 2026
- Continental will become a pure play Tires company – with a continuously improved business profile
Continental To Become a Tire Pure Play Post Transformation
- Resilient tire champion with best-in-class operational efficiency
- Customer-centric business with attractive brand, technology excellence and test-winning products
- Margin and value upside via price/mix opportunities, operational excellence and portfolio management
- Strong cash-generation
We strenghten total shareholder return with our effective capital allocation
- Sustainable investments into footprint, mix and product portfolio
- Selective, value-accretive portfolio enhancements
- Constantly improve balance sheet structure and reduce financial leverage toward target corridor
- Benchmark dividend payments with potential additional shareholder return optionality
We are committed to value creation and an attractive dividend
- Dividend payout ratio1 of 40–60%
- We are committed to keep our credit rating at BBB+/Baa1 as a mid-term potential2 as a pure play Tires company
- To keep our leverage ratio3 ≤ 1 in the mid-term2
- To have an equity ratio of more than 30% inn the mid-term2
1The ratio between the dividend for the fiscal year and the earnings per share
2Mid-term defined as 3 to 5 years, i.e. 2027 to 2029
3Net indebtedness divided by EBITDA (LTM)
Sustainability is a driver of innovation for Continental during the current transformation of mobility and industry.
CLEAR AMBITION
We strive for …
- Carbon neutrality along the entire value chain
- Emission-free mobility & industry (no harmful emissions)
- Circular economy
- Responsible value chains
- by 2050 at the latest
- together with our value chain partners and matching the speed of our customers, industries and markets.
Reasons To Invest in Continental
- Maintain strong balance sheet
- Focus on generating shareholder returns
- Realization of pure-play opportunities
- Continue positive momentum
Tires are our passion. We outperform the industry with customer-centric solutions and operational excellence.
