Fiscal Year 2024: FORVIA HELLA achieves solid financial results in a challenging industry environment

• Currency-adjusted sales improve by 1.3 percent to €8.1 billion; reported sales of €8.0 billion remains at the previous year's level
• Operating income falls to €446 million, among others due to underutilization of production sites; operating income margin at 5.6 percent
• Net cash flow as a percentage of reported sales is 2.4 percent
• Lighting improves sales due to full consolidation of Beijing Hella BHAP Automotive Lighting; declining sales in Electronics and Lifecycle Solutions
• Order intake of over €10 billion; around one third of this comes from the markets in Asia and America each
• Continuation of established dividend policy: dividend of €0.95 per share proposed
• Company outlook for 2025 reflects continued challenging market environment

Lippstadt, 13 March 2025. HELLA GmbH & Co. KGaA ("FORVIA HELLA") today presented its full and final results for the fiscal year 2024 (1 January to 31 December 2024), confirming the preliminary financial data announced on 27 February 2025. Accordingly, currency-adjusted sales improved by 1.3 percent to €8.1 billion; reported sales of €8.0 billion are at the previous year's level. Global vehicle production declined by 1.1 percent in the same period, with the European automotive market making a disproportionately large contribution to this with a decline of 4.3 percent.

Operating income decreased to €446 million (previous year: €486 million), among other things due to underutilization in production in connection with lower-than-expected business volumes. The operating income margin thus fell to 5.6 percent (previous year: 6.1 percent). Net cash flow as a percentage of reported sales amounted to 2.4 percent (previous year: 2.6 percent).

"The automotive market deteriorated noticeably last year. In Europe in particular, but also in the Americas, vehicle production has developed significantly worse than initially forecast. In this challenging environment, we achieved very solid financial results overall and outperformed the development of global light vehicle production. With our results, we fully met the guidance adjusted in September 2024. In addition, our order intake was once again very strong and in line with our strategic orientation to further globalize our business and our customer base," says Bernard Schäferbarthold, CEO of FORVIA HELLA. "I would therefore like to express my sincere thanks to all employees worldwide who have shown remarkable commitment to the Company over the past year. It is not least thanks to their efforts that we are still in a very good position compared to the industry."

Lighting improves sales due to full consolidation of Beijing Hella BHAP Automotive Lighting; declining sales in Electronics and Lifecycle Solutions

In the Business Group Lighting, sales increased by 2.8 percent year-on-year to €4.0 billion (previous year: €3.9 billion). This was mainly due to the full consolidation of the Chinese joint venture Beijing Hella BHAP Automotive Lighting, which has been taking place since this fiscal year. In addition, the lighting business grew slightly in the Americas, partly as a result of new series launches for headlamp and rear lamp projects. Operating income fell slightly year-on-year to €126 million (previous year: €132 million); the operating income margin was therefore 3.2 percent (previous year: 3.4 percent).

In the Electronics Business Group, sales fell slightly by 2.3 percent to €3.3 billion (previous year: €3.4 billion). The radar business has developed successfully, among other things due to series production launches in the American market. In contrast, in addition to the declining industry environment, business development in the electronics area was impacted in particular by postponements of series launches on the customer side, effects from the customer and product mix in China and the slowdown in electrification in Europe. Operating income decreased slightly to €226 million (previous year: €232 million), with the operating income margin therefore remaining at the previous year's level of 6.9 percent.

In the Lifecycle Solutions Business Group, sales dropped by 3.6 percent to €1.0 billion (previous year: €1.1 billion). Due to the overall weaker economic market environment, demand within key customer groups in the commercial vehicle sector, especially among manufacturers of agricultural and construction machinery as well as trucks and trailers, declined considerably. A successful spare parts business in key European markets, partly as a result of an expansion of the electric/electronics portfolio, was able to partially compensate for this decline in demand. Operating income fell to €99 million (previous year: €128 million), and the operating income margin was 9.6 percent (previous year: 11.9 percent).

Order intake of over €10 billion; around a third of this will come from the markets in Asia and America

In the fiscal year 2024, the order intake amounts to over €10 billion and is therefore in the double-digit billion-euro range for the third time in a row. Around one third of this comes from the Asian and one third from the American automotive market. FORVIA HELLA has therefore successfully continued the strategic initiative started already in the previous year to balance business activities between the regions and further deepen business with local automotive manufacturers in China, Japan and India as well as in the USA.

Continuation of established dividend policy: dividend of €0.95 per share proposed

Based on the results for the fiscal year 2024, the Company management will propose to the Annual General Meeting of HELLA GmbH & Co. KGaA on 16 May 2025 to continue the Company's established dividend policy and pay a dividend of €0.95 per share. With a total sum of €106 million, this would mean that around 30 percent of the consolidated net income for the year would be distributed to the company's shareholders, as in previous years.

Company outlook reflects continued challenging market environment

As already announced when the preliminary results for 2024 were presented on 27 February 2025, FORVIA HELLA expects to generate currency-adjusted sales of between around €7.6 billion and 8.0 billion and an operating income margin of around 5.3 to 6.0 percent in the current fiscal year 2025 (1 January t 31 December 2025). Net cash flow is forecast to be at least €200 million.

"In 2025, the market will not give us a tailwind. Vehicle production will remain volatile and, according to current forecasts, will only maintain the level of the previous year. We see increased uncertainties, particularly with regard to the first half of the year," says CEO Bernard Schäferbarthold. "Especially in this phase, it will be particularly important to further expand our business in the Asian and American markets, to further improve our cost structures and our competitiveness, and at the same time to invest sustainably in automotive technologies of the future. We will continue to consistently push ahead with these key strategic initiatives."

Selected key financial figures in millions of euros or as a percentage of reported sales (1 January to 31 December):

The Annual Report for the 2024 financial year is now available on the website of HELLA GmbH & Co. KGaA.