Another noteworthy aspect is the strong free cash flow of more than €2 billion. This enabled us to reduce net indebtedness to its lowest level since 2006.
- Elmar Degenhart
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At the same time, we invested more than €4 billion, in property, plant and equipment, software, and research and development. The capital expenditure ratio is again expected to be around 6 percent in the current fiscal year.
- Elmar Degenhart
Much like us, our customers are rigorously working to improve their profitability and capacity for innovation. For us, this means doing everything possible when it comes to efficiency, effectiveness, and innovations – and all that on the basis of the highest quality. After all, quality creates trust – and trust creates orders. In short, we need to constantly become better and better at the high level we are already operating at.
- Elmar Degenhart
On this basis, we intend to increase the dividend for the third time in a row. We are proposing a distribution of €3.25 per share, corresponding to a dividend payout ratio of 27.4 percent, which is again up slightly on the previous year’s level.
- Elmar Degenhart
We are consolidating our position as one of the leading technology companies in the automotive industry. Research and development expenditure of another 6 percent of our sales or around €2.1 billion is fueling our capacity for innovation. There are very few companies in the industry that are able to operate in these dimensions.
- Elmar Degenhart
We are focusing on the increasing need for mobility and growing demand from our industrial customers. The production volume for vehicles weighing up to six tons is expected to rise to between 100 million and 105 million vehicles. Furthermore, installation of electronics and software will continue to grow substantially, driven by growing demands from end-users and increasingly strict legal requirements for safety and energy consumption. It is partly on this basis that we are aiming for profitable sales of over €50 billion in 2020.
- Elmar Degenhart
We are pleased to look back at another extremely successful financial year 2014 during which we achieved our targets.
- Elmar Degenhart
We intend to focus all our attentions in the coming years on three core growth forces. These are: 1. The massive expansion of our considerable software expertise. After all, in our eyes, software is the “new wheel” of mankind and our industry. Processes with regard to mobility are becoming increasingly complex and more strongly interconnected. These processes need to be controlled and managed reliably, requiring ever greater amounts of software. In the future, practically nothing will move without software. 2. In the fields of technology relevant for us, we want to be regarded as a pioneering and leading technology partner – especially by our customers. 3. Finally, and above all, with our pioneering corporate culture we want to be the preferred employer for people who want to fully develop and expand their skills and abilities with us and make rapid progress.” “Continental has had a good start into 2015, thus confirming our expectations for the entire year.
- Elmar Degenhart
When evaluating the results, we should not overlook the fact that there was, in some cases, very weak growth in Europe, Russia, and South America. There were also significant exchange rate fluctuations. In addition, the mild winter at the end of 2014 had a negative impact on the winter tire business in Europe. The driving force behind the sales development once again came from China and North America. In light of this, it is remarkable that profit after taxes of just under €2.4 billion or €11.88 per share could be achieved.
- Elmar Degenhart
