Herzogen Olach |March 5, 2024 |The Schaeffler Group has published its financial figures for 2023. In 2023, the Schaeffler Group achieved sales of 16.3 billion euros, up 5.5 percent at constant exchange rates8% to achieve the expected target; Free cash flow for the full year was 4At 2.1 billion euros, it was higher than expected. The increase in sales was mainly due to higher volumes, while selling pricing also contributed positively to the full-year growth.
At the Extraordinary General Meeting of Shareholders on February 2, 2024, the Schaeffler Group announced that it would propose a dividend of 45 euro cents per share of non-voting ordinary shares at the Annual General Meeting and increase the dividend payout ratio from 30% to 50% to 40% to 60% (consolidated net income adjusted for special items).
Klaus Rosenfeld, CEO of the Schaeffler Group, said: "In the middle of the 2023 fiscal year, the Schaeffler Group achieved solid growth and continued to transform the company in line with its strategic plan 2025. In a challenging market environment, this performance once again proves that our diversified business structure is a strong competitive advantage. We plan to propose a dividend of 45 cents per share to the Annual General Meeting and share the company's success with our shareholders. ”
In 2023, the Schaeffler Group's Automotive Technology division achieved sales of 977.2 billion euros, an increase of 5.5 billion euros at constant exchange rates4%。In the business segment, the Electric Drives division received new orders of 5.1 billion euros, significantly above the expected target. Sales in the Chassis division grew strongly by 24 percent1%, with the main contribution coming from Europe and China. All four regions of the Group achieved growth, with China growing by 20%。
In 2023, the Schaeffler Group's Automotive Aftermarket division achieved sales of 22.2 percent, thanks to the positive impact of sales volumes and sales pricing5.3 billion euros, an increase of 11.1 billion euros at constant exchange rates8%。The Group's four major regions all achieved growth, with the automotive aftermarket business in China growing by 287%, mainly from the significant growth of the e-commerce business.
In 2023, the Industrial Division of the Schaeffler Group achieved sales of 428.8 billion euros, up 3.8 billion at constant exchange rates9%。Among them, the Ewella company, which was acquired at the beginning of the year, made a positive contribution to this. Affected by the weak market environment, the industrial business in China decreased by 63%。
In January 2024, the Schaeffler Group acquired Vitesco Technologies Group 3887% of the shares, which will be accounted for by the Schaeffler Group in 2024. In addition, the Schaeffler Group expects to complete the integration of Vitesco Technologies in the fourth quarter of 2024, which will be fully consolidated into Schaeffler's financial statements. With this in mind, the Schaeffler Group expects a significant increase in sales and free cash flow of between 300 million and 400 million euros for the full year 2024.
In 2023, the Schaeffler Group announced plans to merge with Vitesco Technologies, aiming to become a technology company focused on drive technology. The transaction is expected to close in the fourth quarter of 2024. The merger with Vitesco Technologies will significantly expand Schaeffler's business area and product range, especially in the field of electric drives. The Bearing Division, formerly part of the Automotive Technologies Division, was merged into the Industrial Division in the first quarter of 2024. With the completion of the merger with Vitesco Technologies, the Schaeffler Group will have four business divisions with leading positions in their respective markets. The four divisions are Electric Drive, Powertrain & Chassis, Vehicle Lifecycle Solutions, and Bearings & Industrial Solutions. The four regions of the Schaeffler Group will remain unchanged.
At the beginning of 2024, the Schaeffler Group completed a public tender offer for all outstanding shares of the Vitesco Technology Group. Together with the stake held by IHO Holding, the Schaeffler family strategic management holding company, Schaeffler currently holds 89 percent of the shares and voting rights of Vitesco Technologies. In addition, at the Extraordinary General Meeting of Shareholders and the General Meeting of Non-Voting Ordinary Shares held in early February 2024, Schaeffler shareholders almost unanimously approved the conversion of non-voting ordinary shares into common shares with full voting rights. The share conversion must take place before or at the same time as the merger of the parties. In the future, the Schaeffler Group will have only one class** and all shareholders will have equal voting rights.
The integration of Vitesco Technologies into the Schaeffler Group is the third step in the entire transaction, which is subject to a vote at the respective annual shareholders' meetings of both companies. The shareholders' meetings are scheduled for April 24, 2024 (Vitesco Technologies) and April 25, 2024 (Schaeffler). In December 2023, Schaeffler and Vitesco Technologies set up an integration committee of equal numbers from both companies to accelerate the integration and realize the annual savings of 600 million euros due to sales and cost synergies as soon as possible. The Integration Committee meets once a week, and the ** Integration Team, which coordinates the integration of the two companies, provides day-to-day support to the Integration Committee.
Klaus Rosenfeld, CEO of the Schaeffler Group, said: "The combination of the Schaeffler Group and Vitesco Technologies will benefit the company's stakeholders. We are convinced that the transformation will increase the attractiveness of Schaeffler**. The positive signals from the capital markets to the proposed merger reinforce our strategic direction to build a leading technology company focused on propulsion technology. ”（Lee Woo-mi
For more than 75 years, the Schaeffler Group has been driving innovation and development in drive technology with a pioneering spirit. Relying on electric drive, low-carbon drive, chassis application, industry 40. The Schaeffler Group is committed to being a trusted partner in the field of digitalization and renewable energies to provide innovative technologies, products and services that make drive technology more efficient, smarter and more sustainable throughout the entire product life cycle. As a technology company specializing in drive technology, the Schaeffler Group offers high-precision components and systems for the entire powertrain and chassis applications, as well as rolling and plain bearing solutions for a wide range of industrial applications. With sales of around 15.8 billion euros in 2022 and around 84,000 employees, the Schaeffler Group is one of the world's largest family-owned companies. With more than 1,250 patents registered in 2022, Schaeffler is the fourth most innovative company in Germany, according to the German Patent and Trademark Office (DPMA).
Schaeffler started investing in production in China in 1995. For more than 20 years, Schaeffler has become an important business partner and partner in the automotive and industrial sectors in China. Adhering to the concept of "local resources serving local markets", Schaeffler is committed to local production and local R&D to provide customers with high-quality products and close service. Currently, Schaeffler has around 130,000 people, with 2 R&D centers in Anting, Shanghai, Changsha, Hunan, 13 factories in Taicang, Suzhou, Yinchuan, Nanjing, Xiangtan, Pinghu, Taoyuan and other places, and 20 sales offices in Beijing, Shanghai, Shenyang, Guangzhou, Nanjing, Jinan, Chengdu, Wuhan, Taiyuan, Chongqing, Xi'an, Tianjin, Dalian, Hangzhou, Changsha, Harbin, Zhengzhou, Hong Kong, Taipei, Taichung. Since 2016, Schaeffler China has been recognized as a "China Top Employer" for 9 consecutive years.
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