Slide 1: FY 2023 Results
FY 2023 RESULTS FEBRUARY 22, 2024
Slide 2: Executive Summary
EXECUTIVE SUMMARY Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 2
Slide 3: Executive summary: 2023 in line with strategic priorities
Executive summary 2023 in-line with our operational strategic priorities Historical businesses Consolidating from strength to strength the ambition in Hydrogen and accelerating industrial development Main achievements Significant improvement Additional initiatives in first year of Lighting to carbon
Slide 4: Executive summary: 2023, year of excellent execution
Executive summary 2023, year of excellent execution Strong revenue growth Solid order book Financial performance reflecting customers’ trust above adjusted targets +20.3% vs. 2022 equivalent to Operating margin 2 years of revenue of €395m +13.4% in 2023 of organic growth Free Cash Flow +3.7pts of €2
Slide 5: For the first time, revenue exceeds €10bn
For the first time, revenue exceeds €10bn Up +38% since 2018, of which 2/3 is organic growth… …while automotive production is down - 4% 11.4 9.2 9.5 8.2 8.0 7.7 91.2 87.6 85.9 79.8 71.6 74.2 2018 2019 2020 2021 2022 2023 Economic revenue (in €bn) Automotive production* (in millions of vehicles) * So
Slide 6: Outperforming the market by +3.7pts
Outperforming the market by +3.7pts FY 2023 vs. FY 2022 TOTAL EUROPE NORTH AMERICA CHINA ASIA (EXCL. CHINA) % of Plastic Omnium 2023 revenue 100% 51% 28% 9% 8% Automotive +9.7% +12.2% +9.9% +10.2% +8.6% production* Plastic Omnium LFL** +13.4% +16.4% +10.8% +0.5% +16.1% PERFORMANCE +3.7pts +4.2pts +0
Slide 7: Business and Strategic Highlights
BUSINESS AND STRATEGIC HIGHLIGHTS Laurent Favre Chief Executive Officer Félicie Burelle Managing Director F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 7
Slide 8: Plastic Omnium well-positioned to address market evolution
Plastic Omnium well-positioned to address market evolution Automotive production market * Plastic Omnium product portfolio In millions of vehicles 3 divisions agnostic to powertrain evolution 94 88 IES 12% 45% >75% Lighting 21% of revenue Modules ZEV** Hybrid 31% Expanded range of powertrain solutio
Slide 9: Robust order intake reflecting customers' trust
Robust order intake reflecting customers’ trust Strengthening our geographical footprint and powertrain diversification Intelligent Exterior Systems Mega • Increasing tailgate activity: significant awards for major deals European and American OEMs Lighting • Solid order book of €1.6bn for the first
Slide 10: Diversifying our customer base
Diversifying our customer base In-line with market evolution 2023 Next steps Increasing business with EV players 15% BEV in total revenue to diversify our customer portfolio New comers Mass market & Chinese OEMs 33% Award January 2024 24% Major US EV Player Plastic tailgate Premium 43% Premium clien
Slide 11: 164 flawless launches in 2023 across all divisions
164 flawless launches in 2023 across all divisions Powertrain 26 NORTH AMERICA EUROPE 21 BY Exterior BUSINESS Systems CHINA 99 49 70 & Mix powertrains REST OF ASIA 15 THE WORLD (excl. China) BY Electric 60 4 20 POWERTRAIN F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 11
Slide 12: Evolution of segment information
Evolution of segment information Aligned with the strategic roadmap and the product portfolio 2022 2023 PLASTIC OMNIUM MODULES MODULES MODULES INTELLIGENT EXTERIOR SYSTEMS (IES) With: EXTERIOR SYSTEMS LIGHTING Plastic Omnium’s PLASTIC software house OMNIUM INDUSTRIES CLEAN ENERGY Incl. SYSTEMS (CES)
Slide 13: Unique offer of fully integrated exterior solutions
Unique offer of fully integrated exterior solutions Increase our content per vehicle through cross-divisions synergies Plastic Omnium is offering a unique technological offer: fully integrated exterior systems through the combination of Intelligent Exterior Systems, Lighting and Modules First awards
Slide 14: Success of the first year for Lighting
Success of the first year for Lighting Strong order intake and significant reduction in cost base Operational efficiency Solid order book of €1.6bn in 2023 in 2023 Innovation Award at CES 2024 REDUCTION in scrap BMW – MINI Cooper Electric Dynamic interior dashboard projection OPTIMIZATION of sites D
Slide 15: Next steps for Lighting
Next steps for Lighting Key priorities to improve growth and profitability Operational priorities Medium-term outlook 2024-2025 2026 and beyond • Revenue growth confirmed by current • Increase order intake with current order intake customers • More diversified customer portfolio and • Diversify cust
Slide 16: Moving forward with priorities for Modules
Moving forward with priorities for Modules Improving profitability through operational excellence 2023 Operational priorities 2024-2025 • Strong performance in H1 2023 • Better adaptation to market environment, - volumes increasing sharply, particularly in Europe notably in Europe • Operating margin
Slide 17: Complete range of energy management systems
Complete range of energy management systems For all types of powertrains: ICE, hybrid, battery and hydrogen electric vehicles Clean Energy Systems (including e-Power) New Energies INTERNAL COMBUSTION ENGINE ELECTRIC VEHICLE HYDROGEN FUEL SYSTEMS BATTERY 48V HIGH PRESSURE SYSTEMS SCR BATTERY HIGH VOL
Slide 18: Clean Energy Systems consolidates leadership and develops electrification
Clean Energy Systems strongly consolidates its leadership and develops electrification Operational priorities Internal Combustion Engine activity Electrification activity (e-Power) Strengthen Further consolidate Focus on fixed costs Incubate electrification market leader position additional business
Slide 19: Our strengths in Hydrogen mobility
Our strengths in Hydrogen mobility Strong interest in hydrogen from OEMs Significant and well-positioned order book Order c.€4bn book Commercial and heavy vehicles c.99% 2021 2022 2023 €3bn Higher value in commercial vehicles revenue Well-diversified product portfolio in 2030 x15 X1.5 High pressure
Slide 20: Hydrogen capacities ramping up
Hydrogen capacities ramping up Next launches of activity SOUTH KOREA FRANCE CHINA Wanju 2025 Lachelle 2025 Shanghai 2026 up to 30,000 vessels up to 80,000 vessels up to 60,000 vessels Investments adapted to the volumes’ ramp-up, with an average of €100m per year until 2030 F Y 2 0 2 3 R E S U L T S
Slide 21: Financials
FINANCIALS Stéphanie Laval VP Investor Relations F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 21
Slide 22: Strong economic revenue growth of +20.3%
Strong economic revenue growth of +20.3% Driven by all businesses In €m • Solid performance of IES thanks Exterior Systems to high level of order intake in +20.3% +32.5% recent years and 5 additional launches vs. 2022 +13.4% (+16.6%*) • Full year of Lighting activity +968 11,399 +1,233 -279 9,477 •
Slide 23: Material improvement in quality of operating margin
Material improvement in quality of operating margin Significant impact of Lighting turnaround whilst pursuing ramp-up in New Energies 2022 2023 In €m +€31m • Operating margin of €395m in 2023 +€167m 395 up +€31m vs. 2022 as reported 364 3.8% 4.3% • Operating margin is up +€167m vs. 2022 228 proforma
Slide 24: Operating margin at 3.8%
Operating margin at 3.8% As per new operating segments OPERATING MARGIN RATE EXTERIOR SYSTEMS • Activity growth and strong operational excellence for IES in 2023 5.7% • Sharp improvement in Lighting 5.0% 4.6% 4.3% 4.4% 3.8% MODULES • Slowdown in volumes in second half only partially offset by flexib
Slide 25: Stable net result Group share at €163m
Stable net result Group share at €163m In a context of high interest rates OPERATING MARGIN In €m FY 2022 FY 2023 • Increase in operating margin partially offsetting the rise in financial expenses in an environment of high interest rates Operating margin 364 395 In % of revenue 4.3% 3.8% NON-RECURRI
Slide 26: Solid Free Cash Flow generation and debt reduction
Solid Free Cash Flow generation and debt reduction Improvement in working capital and carefully monitored CAPEX In €m NET DEBT - €129m • Further reduction in Group net debt of - €129m in-line with continuous deleveraging 1,669 61 98 1,540 FREE CASH FLOW 649 • FCF of €227m, above adjusted guidance 48
Slide 27: Continued debt reduction while pursuing growth
Continued debt reduction while pursuing growth Solid financial structure In €m NET DEBT In €bn 2.3 LIQUIDITY 2.3 1,669 1,540 Undrawn 1.9 & confirmed 1.8 3 years maturity (stable vs. 2022) credit lines 0.4 Available cash 0.5 31 Dec. 2022 31 Dec. 2023 31 Dec. 2022 31 Dec. 2023 NET DEBT / EBITDA In €m
Slide 28: Sustainability
SUSTAINABILITY Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 28
Slide 29: Our commitment to carbon neutrality
Our commitment to carbon neutrality Continued to roll out its plan to achieve its objectives OUR AMBITION ACHIEVEMENTS IN 2023 (excl. Lighting) Operational activities (scopes 1 & 2) -19.7% vs. 2019 Neutral in 2025* (scopes 1 & 2) Upstream and downstream activities (scope 3) -30.3% vs. 2019 -30% in 2
Slide 30: 2023 milestones achieved in carbon neutrality
2023 milestones achieved in carbon neutrality Initiatives to improve the carbon footprint ENERGY EFFICIENCY DECARBONIZING SITES ENERGY MIX Improvement by: Commitment with the EDF group 23 to cover 50% of the Group’s +10.2% vs. 2022 13 renewable electricity needs sites in France in 2025 sites +20.9%
Slide 31: Strong improvement in ESG ratings
Strong improvement in ESG ratings Demonstrating the Group's growing awareness of climate issues 2022 2023 A- A Highest score recognizing our ambitious roadmap and carbon neutrality objectives 80/100 80/100 Platinum status and among top 1% of companies assessed C C+ Among leaders in its industry A A
Slide 32: On track to meet our sustainability targets
On track to meet our sustainability targets YOUTH SAFETY* Apprentices, VIE & trainees ACHIEVEMENT 2023 0.87 ACHIEVEMENT 2023 1,233 2025 OBJECTIVE 0.5 2025 OBJECTIVE 1,300 * FR2: Lost time injury frequency rate DIVERSITY / WOMEN ACHIEVEMENT 57.1% 24.0% 24.4% 29.7% 2023 women in the women in senior wo
Slide 33: Outlook
OUTLOOK Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 33
Slide 34: Continuous return to shareholder
Continuous return to shareholder A solid track record of dividend distribution Shareholders’ proposed dividend* Historic evolution of dividend per share In € per share 0.74 €0.39 0.49 0.49 per share 0.37 0.39 0.39 0.25 0.16 34.5% payout 2010 2012 2014 2016 2018 2020 2022 2023 * Subject to approval a
Slide 35: Outlook
Outlook Expected market conditions in 2024 Group’s objectives for 2024 Outperform automotive production Automotive production expected to be flattish (S&P* estimates -0.7%) Increase operating margin with strong monitoring of fixed costs EV ramp-up may not go as fast Increase net result Group share a
Slide 36: Conclusion
Conclusion Group’s strategy remaining a key pillar for its long-term growth 2023, first full year of execution of our strategic roadmap post acquisitions highlighted by strong commercial momentum and solid financial performance Operational excellence of historical businesses and acceleration of the
Slide 37: Questions & Answers
QUESTIONS & ANSWERS
Slide 38: Upcoming events
UPCOMING EVENTS 23 April 2024 24 April 2024 23 July 2024 28 October 2024 2024 first General meeting 2024 half-year 2024 third quarter revenue of shareholders results quarter revenue F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 38
Slide 39: Appendix
APPENDIX F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 39
Slide 40: Revenue per business
Revenue per business In €m 2022 2023 Change LFL* change Exterior Systems 4,210 5,579 +32.5% +16.6% Modules 2,580 3,112 +20.6% +18.2% Powertrain 2,687 2,707 +0.8% +3.7% Economic Revenue 9,477 11,399 +20.3% +13.4% Joint Ventures 939 1,084 +15.5% +13.1% Exterior Systems 3,507 4,860 +38.6% +17.3% Module
Slide 41: Cash flow statement
Cash flow statement In €m 2022 2023 Operating margin 364 395 EBITDA 864 900 Gross Cash Flow 666 649 In % of revenue 7.8% 6.3% Capex and development -351 -482 In % of revenue -4.1% -4.7% Change in WCR -72 +61 Free Cash Flow 243 227 Dividends -52 -60 Treasury shares -16 3 IFRS 16 -40 -91 Acquisition i
Slide 42: Disclaimer
Disclaimer The information contained in this document (the “Information”) has been prepared by Compagnie Plastic Omnium SE (the “Company”) solely for informational purposes. The Information is proprietary to the Company. This presentation and its contents may not be reproduced or distributed or publ
Slide 43: www.plasticomnium.com
www.plasticomnium.com F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 43