Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — H1 2020 Earnings Presentation
44 slides from Opmobility's earnings presentation, Jul 23, 2020
Slide 1: 2020 Half-Year Results
2020 HALF-YEAR RESULTS LEVALLOIS, JULY 23, 2020
Slide 2: Action, Reactivity, Voluntarism
ACTION REACTIVITY VOLUNTARISM 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 2
Slide 3: Plastic Omnium: Resilience & Transformation
Plastic Omnium: Resilience & Transformation 4.3pts outperformance of the automotive production in H1 STRONG Strong liquidity: €1.9Bn FUNDAMENTALS Committed teams 1/3 cost reduction during shutdown AGILITY IN EXECUTION 27% reduction in capex in H1 Further flex & rationalization Acceleration on electr
Slide 4: Automotive production evolution
A unprecedented crisis Automotive production evolution 100 (In million vehicules) 92 91 90 90 85 86 86 82 79 Trade wars 80 Stricter regulations 74 CASE 72 70 68 65 64 2020 vs 2019: -25% 60 57 2009 vs 2008: -12% Followed by a sharp recovery 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 5: 2020 Half-year results – key figures
2020 Half-year results – key figures Economic Sales Outperformance EBITDA Operating Result €3,233m 4.3pts €171m -€116m -29.9% vs automotive production 5.8% -3.9% -29.5% LFL* at -33.8% of consolidated sales of consolidated sales Net Result (group share) Free Cash-Flow Net Debt Liquidity -€404m -€572m
Slide 6: 3 strategic pillars reinforced in H1 2020
3 strategic pillars reinforced in H1 2020 OPERATIONAL INNOVATION CORPORATE SOCIAL EXCELLENCE RESPONSIBILITY Digitalization CO2 emissions Carbon neutrality 4.0 industry Electrification Full lifecycle analysis Transformation Connectivity Diversity 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 202
Slide 7: Anticipation, Agility & Strong Liquidity in H1
Date ANTICIPATION, AGILITY & 7 STRONG LIQUIDITY IN H1
Slide 8: Lack of visibility strongly accentuated by Covid-19
Lack of visibility strongly accentuated by Covid-19 PO more cautious than market assumptions Evolution of 2020 automotive production assumptions (In million vehicles) 86 86 PANDEMIC IMPACT: 84 84 ?? Industry shutdown 67 Global recession 64 Societal changes Stimulus spending 2019 January 7, 2020 Febr
Slide 9: Strong impact on our operations in H1
Strong impact on our operations in H1… Jan Feb March April May June CHINA 29 9% REST OF ASIA 17 7% EUROPE 58 53% AMERICAS 27 31% # of plants % of 2019 economic sales Open Partially open Closed 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 9
Slide 10: Strong repercussions on PO sales in Q2
…With strong repercussions on PO sales in Q2 PO sales for the month of June 2020 Evolution of PO economic sales in H1 2020 vs H1 2019 CHINA Jan Feb March April May June 2020 sales = +16% vs 2019 sales +5% +14% -15% -29% EUROPE 2020 sales = -12% vs 2019 sales -62% -86% PO 2020 monthly sales PO 2019 m
Slide 11: Priorities to manage the volume drop
3 priorities to manage the volume drop SAFE RESTART COST CASH OF OUR REDUCTION MANAGEMENT OPERATIONS 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 11
Slide 12: Adapting and transforming the company
Adapting and transforming the company SAVINGS Crisis management €117m = flex in H1 2020 RESILIENCE Structural adaptation €40m & = rationalization on annual basis TRANSFORMATION €200m Transformation on annual basis by the end of 2022 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 12
Slide 13: Reactivity to flex at the maximum level
Reactivity to flex at the maximum level STAFF COSTS PRODUCTION COSTS AND SG&A 2019: €1.3Bn 2019: €0.5Bn 15% of sales 6% of sales -40% in April -30% in April =€117m -14% in H1 -6% in H1 OF SAVINGS FOR H1 2020 €94m of savings €23m of savings 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 13
Slide 14: Adapting our cost structure – ongoing actions
Adapting our cost structure – ongoing actions PLANTS H2 2020: Arevalo composite parts (IES Spain) CLOSURE H1 2021: Eisenach (CES Germany) GERMAN Optimization and R&D rationalization (IES) FOOTPRINT ANNUAL SAVINGS PAINTLINES Stoppage of some paint lines under low activity =€40m REGIONAL Closure of th
Slide 15: Preserve cash & liquidity
Preserve cash & liquidity WCR CAPEX NEW STAKEHOLDERS MANAGEMENT REDUCTION CREDIT LINES COMMITMENTS 27% reduction Payment of €71m Inventories & in H1 2020 €270m of renewed of dividends overdues reduction (vs €237m in H1 2019) credit lines (-34% vs 2019) -€23m -€82m +€560m €500m bond reimbursement of
Slide 16: A safe restart of our operations
A safe restart of our operations A “SAFE RESTART PLAYBOOK” APPLIED IN ALL OUR SITES Absolute priority given to the safety of our employees Management of the supply chain with no disturbance of our customers 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 16
Slide 17: Creation of an ACT FOR ALL fund
Creation of an ACT FOR ALLTM fund €1m 113 projects financed in 23 countries CLINICAL HOSPITAL • SCHOOL • UNIVERSITY • LOCAL ORPHANAGE • UNEMPLOYED PEOPLE SE 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 17
Slide 18: H1 2020 Financial Results
H1 2020 Financial Results
Slide 19: Sales evolution per quarter
Sales evolution per quarter COMPARABLE -53% LFL vs Q2 2019 -1 Md€ vs Q1 2020 2019 2020 2,236 2,137 2,375 1,097 Q1 economic sales Q2 economic sales -30% LFL vs H1 2020 H1 Outperformance +4.3pts Europe +11.7pts 4,611 3,233 China +9.5pts North America +5.1pts H1 economic sales 2020 HALF-YEAR RESULTS Ju
Slide 20: Economic sales: €3,234m
Economic sales: €3,234m ∆ ∆ at constant In €m H1 2019 H1 2020 perimeter & Outperformance in % exchange rate PO Industries 3,458 2,395 -30.8% -30.7% +3.1pts PO Modules 1,153 838 -27.3% -25.7% +8.1pts Economic sales 4,611 3,233 -29.9% -29.5% +4.3pts JVs 343 271 -20.8% -19.2% - Consolidated sales 4,268
Slide 21: H1 2020 Economic sales per region and per customer
H1 2020 Economic sales per region and per customer 1% CHINA ASIA 18% ASIA excluding China 10% 16% Others 8% EUROPE French 1 AFRICA % 54% SOUTH AMERICA 1% 42% 19% German American NORTH AMERICA 26% 22% Asian 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 21
Slide 22: H1 2020 Profitability by business
H1 2020 Profitability by business In €m H1 2019 % sales H1 2020 % sales Consolidated sales 4,268 100% 2,962 100% PO Industries 3,207 75% 2,203 74% PO Modules 1,061 25% 759 26% Operating Result 281 6.6% -116 -3.9% PO Industries 254 7.9% -106 -4.8% PO Modules 27 2.5% -11 -1.4% EBITDA 511 12.0% 171 5.8
Slide 23: Greer / South Carolina recovery
Greer / South Carolina recovery INDUSTRIAL Quality and on time delivery Customer satisfaction RECOVERY IN LINE Improvement of industrial indicators Operational improvement of €45m confirmed (excluding Covid-19 impact) FINANCE Breakeven target confirmed INDUSTRIAL Good activity with BMW expected in G
Slide 24: H1 2020 Profit & Loss account
H1 2020 Profit & Loss account In €m H1 2019 H1 2020 Economic sales 4,611 3,233 Consolidated sales 4,268 2,962 EBITDA 511 171 In % of sales 12.0% 5.8% Operating result 281 -116 In % of sales 6.6% -3.9% Other operating expenses -25 -313 In % of sales -0.6% -10.6% Financial expenses -37 -35 In % of sal
Slide 25: €267m of asset impairments
€267m of asset impairments By nature 32 5 Significant drop of Industrial assets automotive market Development assets mid-term growth 53 Customer contracts 177 Other assets Lower capacity utilization €267m of asset impairments =6.5% of total non-current assets 2020 HALF-YEAR RESULTS July July23 23 ,
Slide 26: H1 2020 Cash-flow statement
H1 2020 Cash-flow statement In €m H1 2019 H1 2020 Consolidated Sales 4,268 2,962 Net Debt (beginning of the period) -698 -739 Net Operating Cash Flow +391 +69 in % of sales 9.2% 2.3% Capex and development -308 -226 in % of sales -7.2% -7.6% Change in WCR -53 -415 ow factoring +26 -95 Free Cash Flow
Slide 27: H1 2020 Key financial metrics
H1 2020 Key financial metrics EBITDA (in m€) NET DEBT (in m€) NET DEBT/EBITDA 1,410 2.1 1,005 1,021 739 1.1 511 0.7 171 H1 2019 2019 H1 2020 H1 2019 2019 H1 2020 H1 2019 2019 H1 2020 SHAREHOLDERS’ EQUITY (in m€) GEARING ROCE 2,231 2,347 17% 17% 78% 1,805 46% 32% 4% H1 2019 2019 H1 2020 H1 2019 2019
Slide 28: Strong liquidity
Strong liquidity Liquidity as of 30/06/2020 Bond issues per maturity Undrawn 500 1,250 & confirmed credit lines 300 300 Cash 620 & cash equivalent 2020 2021 2022 2023 2024 2025 2026 €1.9Bn of liquidity No major repayment before June 2023 after €500m bond reimbursement in May 2020 5 years maturity; n
Slide 29: Acceleration of Group's Transformation
ACCELERATION OF GROUP’S TRANSFORMATION 29
Slide 30: Managing a slow recovery of the market
Managing a slow recovery of the market… 100 Automotive production outlook (In million vehicules) 91 90 86 85 81 80 76 70 67 70 PO management Auto market forecast providers assumptions 64 60 2018 2019 2020 2021 2022 2023 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 30
Slide 31: …in a fast-changing environment
…in a fast-changing environment Regionalization Acceleration Electrification Digitalization on CSR & hydrogen gaining expectations momentum 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 31
Slide 32: OMEGA, our transformation project
OMEGA, our transformation project PROCUREMENT 7 TRANSVERSAL AXES EMPLOYER DESIGN OF CHOICE & DEVELOPMENT ANNUAL SAVINGS DIGITALIZATION =200m by end of 2022 CARBON-NEUTRAL ORGANIZATION STRATEGY DESIGN INDUSTRY 4.0 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 32
Slide 33: Ambitious CSR targets & main achievements
Ambitious CSR targets & main achievements CARBON NEUTRAL LIFECYCLE ANALYSIS AND USE DIVERSITY & EQUAL STRATEGY OF RECYCLING PLASTIC OPPORTUNITIES Carbon neutral by 2050 Innovative project with 2025 target: 25% women Ongoing work on a mid-term target ARaymond and CETIM: in executive positions to be c
Slide 34: Impact of Covid-19 on CASE evolution
Impact of Covid-19 on CASE evolution Covid impact C ONNECTED A UTONOMOUS Acceleration of electrification S HARED reinforced by incentives E LECTRIFIED 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 34
Slide 35: Successful positioning on BEV cars
Successful positioning on BEV cars TRADITIONAL OEMs Front-end modules Front and rear bumpers Rear bumpers, front-end Front-end modules, Bumpers, tailgates, & cockpit modules & front-end modules modules, spoilers, innovative active grid front-end modules, wheel arches and systems and innovative activ
Slide 36: An efficient ecosystem
Plastic Omnium aims to be a leader in on-board energy storage and supply Member of Research Centers Strategic acquisitions AN EFFICIENT Partnerships ECOSYSTEM Venture capital 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 36
Slide 37: Successful strategy
Successful strategy PRE-DEV UNDERWAY 700 and 350 WON RFQ bar certifications obtained in Q4 2019 and Q1 2020 SUBMITTED BID SUBMITTED BID 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 37
Slide 38: Plastic Omnium aims to be a leader in on-board energy storage and supply
Strong ambitions 2030 MARKET: 2 MILLIONS OF VEHICLES High pressure vessels 200, 350 & 700 bar 25% 2030 PO market PO offer shares ambitions Fuel Cell System 10% Plastic Omnium aims to be a leader in on-board energy storage and supply 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 38
Slide 39: Outlook
OUTLOOK
Slide 40: Automotive production – PO assumptions
A continuous decline in automotive production Full-year Automotive production – PO assumptions production variation (in millions of vehicles) -25% CHINA: -20% 86 -15 -7 64 EUROPE: -30% -34% -15% NORTH AMERICA: -30% FY 2019 H1 H2 FY 2020 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 40
Slide 41: H2 2020 Financial outlook
H2 2020 Financial outlook Based on an automotive production at 64 millions of vehicles in 2020: EBITDA OPERATING MARGIN FREE CASH-FLOW ≥10% ≥4% ≥€250m of consolidated sales of consolidated sales 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 41
Slide 42: 2020 Financial outlook
2020 Financial outlook Based on an automotive production at 64 millions of vehicles in 2020: OUTPERFORMANCE EBITDA OPERATING MARGIN of the automotive production ≥5 POINTS ≥8% POSITIVE of consolidated sales 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 42
Slide 43: Plastic Omnium will get out stronger
Plastic Omnium will get out stronger LONG TERM GROWTH STRATEGY SUPPORTED BY COMMITTED TEAMS + ANTICIPATION & TRANSFORMATION + SOUND FINANCIAL STRUCTURE 2020 HALF-YEAR RESULTS July July23 23 , 2020 thth, 2020 43
Slide 44: 2020 Half-Year Results
2020 HALF-YEAR RESULTS LEVALLOIS, JULY 23, 2020