Continental says it aims to achieve annual organic growth of around 5% to 8% on average in the mid-term.
In its Automotive Technologies group sector for example, Continental plans in the mid-term to exceed the expected average market growth of around 5% to 7% per year, by around two to four percentage points.
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The aim is to achieve an adjusted EBIT margin for the Continental Group of between around 8% and 11% (excluding Powertrain Technologies).
"The future of mobility is characterised by its high degree of connectivity and safety as well as its convenience – regardless of the vehicle's drive system," said Continental CEO, Nikolai Setzer. "While hardware is still important, software will increasingly make the difference in the future.
"With our future-oriented technologies and our success-driven, global team, we will be among the winners of the transformation in the mobility industry. "The three cornerstones of our strategy will be decisive in this respect: strengthening our operational performance, differentiating our portfolio with a focus on value creation and turning the change to connected and sustainable mobility into an opportunity."
For his part, Continental CFO, Wolfgang Schäfer, added: "Our strategy is clear and our mid-term targets have been set.
"Growth that outpaces our markets and industries, an adjusted EBIT margin of around 8% to 11% and a return on capital employed of around 15% to 20% illustrate our ambitious yet realistic growth path. In addition, with a targeted cash conversion ratio of more than 70%, we will further increase our financial strength in the future."
Continental says it is focusing on above-average growth in the areas of connected, assisted and autonomous driving; software; new vehicle architectures with high-performance computers; the Tyres and ContiTech business in high-growth regions; and digital solutions and services such as those for fleet and industrial customers.
Continental is using its experience as a software company with more than 20,000 software and IT specialists.
At the same time, the company plans to strengthen its market positions in profitable areas such as safety solutions, display and control systems, surface materials and the European passenger-car tyre business and to secure their value. In this way, Continental plans to generate sufficient funds for expansion of its growth areas.
With regard to the planned spin-off of its powertrain business, Setzer added: "By the end of the year, the necessary organisational conditions will have been created as planned and the internal processes will have been reorganised.
"We therefore intend to carry out the planned spin-off of Vitesco Technologies as scheduled next year."
