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Despite the challenging macroeconomic environment, Continental achieved adjusted sales and profit targets in the 2022 fiscal year. According to preliminary statistics, the group's sales revenue for the fiscal year 2022 was 39.4 billion euros (approximately 289.1 billion yuan). Excluding the impact of merger scope and exchange rate changes, the group's sales revenue increased by 12.3%. However, in the 2022 fiscal year, the group's net profit was particularly affected by approximately 1 billion euros (approximately 7.3 billion RMB).

Affected by higher interest rates and other valuation factors, the automotive subsidiary recorded an impairment of over 850 million euros (approximately 6.24 billion yuan). In addition, due to business adjustments in Russia, Continental Group's assets were impaired by approximately 87 million euros (approximately 640 million RMB). Therefore, the net profit was 67 million euros (approximately 490 million yuan), a year-on-year decrease of 95.4%.

The additional costs of 3.3 billion euros (about 24.2 billion yuan) caused by the Russia-Ukraine conflict, the restrictions brought by China's COVID-19, the continuous shortage of semiconductors, and the rising prices of raw materials, semi-finished products, energy and logistics have affected the performance of the 2022 fiscal year. 2022 is a particularly challenging year for us. This is also the reason why we are gradually and systematically exiting the Russian market, "said Situ Che, CEO of Continental Group, at a financial report on March 8th." Despite the challenges, we have performed well in terms of operations, achieved the group's sales and profit expectations, and achieved good results

In order to address many challenges and enhance resilience, Continental has implemented more targeted cost control and integrated management of its electronic product procurement and logistics chain, and expanded the supplier scale.

In 2022, Continental's production increased by approximately 7% year-on-year, reaching approximately 82 million vehicles. The group expects global production of passenger cars and light commercial vehicles to increase by 2% to 4% in 2023. However, a significant increase in materials, wages and salaries, as well as energy and logistics costs (totaling approximately 1.7 billion euros) is expected to once again seriously affect the profitability of the 2023 fiscal year.

Based on these assumptions and taking into account the exchange rate at the beginning of the fiscal year, Continental Group expects group sales to be approximately 42 billion to 45 billion euros in 2023, with an adjusted pre interest and tax profit margin of approximately 5.5% to 6.5%.

It is worth mentioning that Continental has maintained a growth trend in the future mobile travel field. In 2022, it exceeded 23 billion euros, a year-on-year increase of 26%. At the same time, the group won the first large order for a "semi dry" braking system, with a value of over 2 billion euros. The reason why this system is so special is because it uses "dry" brakes on the rear axle that do not require brake fluid, and also includes the MK C2 electronic brake system. In addition, the order value of cutting-edge display solutions put into production after 2022 has exceeded 7 billion euros.

Continental will also continue to promote the development of assisted driving and autonomous driving. To this end, the company is collaborating with edge artificial intelligence semiconductor company Ambarella to provide end-to-end solutions for automotive manufacturers, ranging from L2 level to advanced assisted driving. This strategic cooperation is launched by Continental after integrating Anba's high-performance and low-power SoC into its advanced driver assistance system. The joint solution between the two parties is planned to start mass production in 2026.