The Spin-off of Vitesco Technologies was approved by Continental AG's Annual Shareholders' Meeting on April 29, 2021. Vitesco Technologies autonomy enables it to focus entirely on the shift towards electic mobility.
The decision to transform Vitesco Technologies into an independent group is essentially based on changes in the (global) powertrain business. Rapid adaptability is essential in order to succeed in this business. As a separate and independent corporate group, the Vitesco Technologies Group will be better equipped to react to market developments. As a result of shorter decision-making channels, the Vitesco Technologies Group will be able to increase its speed and agility. Its clear focus is on electrification, e-mobility and electronics, supported by an independent brand presence aligned with this focus.
"We are extremely delighted and proud to achieve this milestone. My congratulations go to the entire Vitesco Technologies team on this significant step and my sincere thanks for their excellent work over the past few years," said Andreas Wolf, CEO of Vitesco Technologies. "Now we have the necessary entrepreneurial flexibility to position ourselves even better in the market and continue with our clear focus on electrification."
With the completion of the spin-off, Vitesco Technologies, the former Powertrain business area of Continental AG, has become independent. As a result of the spin-off, each shareholder of Continental AG received one share in Vitesco Technologies for every five Continental shares held. The largest single shareholder of Vitesco Technologies is the Schaeffler family, via its investment companies IHO Verwaltungs GmbH and IHO Beteiligungs GmbH, with a total stake of around 46 percent. Vitesco Technologies has nearly 40,000 employees at around 50 locations worldwide. The company's headquarter is in Regensburg/Germany.
The first half of 2021 has reinforced the positive upward trend despite difficult market conditions. Globally, around 500,000 vehicles were electrified by Vitesco Technologies in the first half of 2021. "This is an enormous increase. In comparison, we were able to equip more than two million vehicles with the electrification solutions of our business unit Electrification Technology since 2006," Wolf continued.
In total, Vitesco Technologies generated sales of EUR4.4 billion in the first six months (HY1 2020: EUR3.4 billion, +29 percent). Adjusted EBIT increased year-on-year to EUR84.2 million (HY1 2020: -EUR218.1 million), and the adjusted EBIT margin therefore increased to +1.9 percent (HY1 2020: -6.4 percent). Adjusted EBIT increased mainly due to higher production volumes and strict fixed cost discipline, despite additional headwinds due to material shortages.
CFO Werner Volz added: "For Vitesco Technologies, the listing is the next logical step in the company's development, a perfect contribution to our growth strategy and giving us broader access to the capital market. As a result, we will be able to benefit even more from the opportunities offered by the fast-growing e-mobility market."
The shares of Vitesco Technologies AG with the International Securities Identification Number (ISIN) [DE000VTSC017] and German Securities Number (Wertpapierkennnummer, WKN) [VTSC01] will be listed and traded in the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol [VTSC].
Vitesco Technologies is a leading international developer and manufacturer of state-of-the-art powertrain technologies for sustainable mobility. With smart system solutions and components for electric, hybrid and internal combustion drivetrains, Vitesco Technologies makes mobility clean, efficient, and affordable. The product range includes electrified drivetrain systems, electronic control units, sensors and actuators, and exhaust-gas aftertreatment solutions. In 2020, Vitesco Technologies recorded sales of EUR8 billion and employs more than 40,000 employees at about 50 locations worldwide. Vitesco Technologies is headquartered in Regensburg, Germany.
Source: VITESCO TECHNOLOGIES (THAILAND)