The following is a summary of the Continental Aktiengesellschaft (CTTAF) Full Year 2023 Earnings Call Transcript:

Financial Performance:

• Continental Aktiengesellschaft reported FY sales of €41.4 billion, with organic growth of 6.9% and adjusted EBIT margin of 6.1%.

• The company managed solid pricing management in all sectors contributing to profitability despite facing inflation.

• The Tires business ended the year with a 13.6% adjusted EBIT margin result, supported by volume recovery in the replacement markets.

• The full year EBIT performance was 1.9%, a 260 basis points increase from 2022.

• Adjusted free cash flow for FY 2023 was €1.3 billion, slightly above the guided corridor.

Business Progress:

• The company announced decisions to drive business forward and increase profitability: recalibrating the portfolio, transforming developed technologies, and initiating operational excellence measures.

• For 2024, significant measures to adjust the portfolio have been started, including a planned carve-out of the underperforming Automotive business segment.

• The company achieved strong organic growth across its business areas in Q4 and aims to maintain this momentum into 2024.

• The focus is on innovative new products in areas on Autonomous Mobility business sector.

• R&D efficiency will continue to be a main focus, with the goal of reducing the R&D to sales ratio to around 11% in the short-term and around 9% in the mid-term.

• The company achieved €7.3 billion order intake for Q4, lifting the full year to more than €27 billion, with notable wins including €3.4 billion for Safety and Motion, and €1 billion for Autonomous Mobility.

More details: CONTINENTAL AG IR

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