Continental AG Approves Automotive Spin-Off and Sets Dividend Policy

On March 12, 2025, Continental AG's Supervisory Board endorsed the Executive Board's plan to spin off its Automotive Group, aiming to complete the necessary agreements. This strategic move allocates €1.5 billion in cash funds to the new Automotive entity before the spin-off's completion. The risks and opportunities will be distinctly divided between the two independent companies based on their respective business operations.

The Board also sanctioned a dividend strategy for the future entities. Continental AG targets a payout ratio of 40% to 60% of net income, while the Automotive Group aims for a 10% to 30% ratio, contingent on sustainable, long-term growth. These decisions reflect a focus on robust capital resources to support future operations.