This corresponds to a payout ratio of around 50% in relation to the consolidated net profit attributable to shareholders before special items and is therefore at the upper end of the targeted range of 30% to 50%.

"The past year was characterized by major uncertainties that continue to this day. Our positioning as a global automotive and industrial supplier has proven its worth in these difficult times and helped us to overcome the crisis. We are paying a dividend of 25 cents and are thus consistently pursuing our dividend policy. This is also a positive signal to our shareholders," said Klaus Rosenfeld, CEO of Schaeffler.

Good start to the 2021 financial year

With regard to the business development in the first months of the year, Rosenfeld said that the Schaeffler Group has made a good start to 2021 despite continuing challenging conditions. He referred to the preliminary key figures for the first quarter of 2021, which Schaeffler published on April 19. This step had become necessary because the key figures were significantly higher than the previous year and the company's own expectations to date.

At 3,560 million euros, the Schaeffler Group's revenue for the first quarter was 11.2 percent above prior year at constant currency (prior year adjusted: 3,281 million euros), demonstrating a significant recovery. The EBIT margin before special items reached 11.3% in the first quarter (previous year adjusted: 6.5%). Free cash flow before cash inflows and outflows for M&A activities amounted to EUR 130 million in the first quarter. A key reason for this is the better-than-expected sales momentum in the first quarter, particularly in China. The earnings trend also shows that the cost adjustments introduced last year are continuing to have an effect.

Successes in e-mobility at Automotive Technologies

The successes in e-mobility are particularly pleasing. In 2020, Schaeffler recorded incoming orders of 2.7 billion euros in the E-mobility business division, which was significantly above the originally planned target of 1.5 to 2 billion euros. The number of projects was 30 percent higher than in the previous year. And it continues to rise this year. By expanding electrification solutions to the commercial vehicle sector, Schaeffler is making another important contribution to achieving climate and sustainability targets.

In addition to the continuous expansion of the core business with bearings and linear technology, the increasing automation of industrial processes offers significant growth potential for Schaeffler. With a modular portfolio of innovative bearing supports, robot gearboxes and drive motors, the Industrial division demonstrates its expertise in lightweight robotics. These system components play a decisive role in the performance of compact robots and have the potential for leaps in development.

Negotiations on job cuts largely concluded

The package of measures announced in September 2020 to accelerate the Schaeffler Group's transformation is making good progress. The structural measures mainly affect twelve locations in Germany. The measures should be largely implemented by the end of 2022. Following intensive and constructive negotiations, reconciliations of interests have now been concluded at nine out of twelve locations. Schaeffler is therefore in a position to implement the majority of the measures.

Negotiations are still ongoing for the Wuppertal, Clausthal-Zellerfeld and Luckenwalde sites. Due to the planned measures, such as relocation, possible sales and closure, more time is needed to find solutions. The talks are proceeding constructively.

Employers and employee representatives have agreed to achieve the job cuts in the most socially responsible way possible through partial retirement arrangements, internal transfers and severance agreements. With the help of these measures and the volunteer program, which ran from November 2020 to the end of March 2021, half of the total planned headcount reduction has already been implemented.

Roadmap 2025

At the end of last year, the Schaeffler Group presented its Roadmap 2025, which includes an updated corporate strategy, an implementation program, and medium-term targets up to 2025. The Roadmap 2025 stands for continuity and expansion of the company's own strengths, but also for optimization and further development with regard to new technologies and business models as well as costs and efficiency.

At the same time, the new company claim "We pioneer motion" expresses the aspiration to continue to shape movement and progress in the future as a diversified automotive and industrial supplier with global reach. In the future, synergy potential within the Schaeffler Group will be utilized even more. "With the Roadmap 2025, we have sharpened our strategy and aligned it with the current challenges and the opportunities that present themselves. We will consistently implement our Roadmap 2025 and thus make the Schaeffler Group even stronger," says Rosenfeld.