Opmobility · EURONEXT:OPM

Opmobility — Plastic Omnium — H1 2019 Earnings Presentation

30 slides from Opmobility's earnings presentation, Jul 19, 2019

  1. Slide 1: 2019 Half-Year Results

    2019 HALF-YEAR RESULTS LEVALLOIS, JULY 19TH, 2019

  2. Slide 2: Plastic Omnium Industries and Modules

    Plastic Omnium 2 INDUSTRIES MODULES INTELLIGENT EXTERIOR SYSTEMS PLASTIC OMNIUM MODULES CLEAN ENERGY SYSTEMS CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  3. Slide 3: H1 2019: managing market uncertainty, solid performance

    H1 2019 : managing market uncertainty, solid performance 3 • Economic and political environment unstable • Environmental pressure & regulations accelerating MARKET • Large investments in electric and connected vehicles • Auto production – 6.9% (-14.4% China; -11.4% Germany) with high volatility • An

  4. Slide 4: H1 2019: reinforced independence

    H1 2019 : reinforced independence 4 Burelle Family • Cancellation of 95,692 controlled shares on May 20th 2019 85.4 %  Control increased from 80.9% to 85.4% % of interest 50.17% • Purchase by Burelle SA of 400,000 PO shares in March 2019 58.78 % • Cancellation by PO of 2.4m treasury shares in 2018

  5. Slide 5: Potential real estate transaction

    Potential Real estate transaction 5 Potential transaction • Plastic Omnium intends to reorganise its non-industrial real estate. • On the basis of an independent assessment, Plastic Omnium could sell its tertiary real estate assets to the real estate corporation Sofiparc. Sell to • Sofiparc is owned

  6. Slide 6: 2019 Half-Year Results: solid performance

    2019 Half-Year Results : solid performance 6 Economic Sales : €4,611m +20.7% Consolidated Sales : €4,268m +33.8% Operating Margin : €281m 6.6% of sales EBITDA : €511m 12.0% of sales Net Result – Group Share : €155m 3.6% of sales Free Cash-Flow : €30m 0.7% of sales Net Debt : €1,021m CONFIDENTIAL COM

  7. Slide 7: 2019 Half-Year Highlights

    2019 Half-Year Highlights CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  8. Slide 8: Managing market uncertainty

    Managing market uncertainty  8 Anticipated volume drop with cost reduction programmes H2 2018 Auto production Forecast H1 2019 Auto production Forecast +2.9% +0.6% Dec. 2018 Jan. 2019 Mar. 2019 Jun. 2019 June 2018 Sep. 2018 -2.5% -4.4% -4.3% -6.9% Cost reduction Cost reduction Programme launched Pr

  9. Slide 9: Cost reduction programmes

    Managing market uncertainty  9 Cost reduction programmes Annualized Impact • Plant flex : direct headcount & temps ↓ VARIABLE COST -€50m • Strict control of production cost • Headcount reductions : indirect & structure FIXED COST -€50m • Strong effort in R&D maintained -€100m CONFIDENTIAL COMPAGNIE

  10. Slide 10: Generating free cash-flow

    Generating free cash-flow  10 Investments capped at 6% of sales H1 Investments H2 Investments • 6 new plants • 0 new plants • 3 new R&D centers • 0 new R&D centers H1 = 2019 =  7.2% of sales  6% of sales  €30m free cash-flow  €200m free cash-flow CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  11. Slide 11: Delivering outperformance: record SOP

    Delivering outperformance  11 Record SOP in H1 and H2 +58 243 185 138 102 105 83 # Start of production H1 2018 H2 2018 H1 2019 H2 2019 Americas 7 26 13 16 Europe 37 29 37 47 Asia 39 47 55 75 o/w China 28 40 45 60 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  12. Slide 12: New plants launched: Industries

    Delivering outperformance  12 New plants launched : Industries Kenitra, Morocco Bhamboli, India Hlohovec, Slovakia Greer, USA 128 plants globally … + 6 added in H1 2019 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  13. Slide 13: New plants launched: Modules

    Delivering outperformance  13 New plants launched : Modules Vaihingen, Germany Saltillo, Mexico 128 plants globally … + 6 added in H1 2019 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  14. Slide 14: New R&D centers opened

    Delivering outperformance  14 New R&D centers opened DELTATECH • 140 engineers & scientists Brussels, BELGIUM : • Surface : 15,500m² Advanced Research Center • Clean energies research • 150 engineers & scientists OMEGATECH • Surface : 16,000m² Wuhan, CHINA : • Supporting China growth Asia R&D Cente

  15. Slide 15: Pushing open innovation

    Delivering outperformance  15 Pushing Open Innovation Universities Partnerships 5 RESEARCH CENTERS PO-Open Innovation Research Lab Awards Intelligent Exterior Systems Clean Energy Systems Clean Energy Systems New Energies Start-up Hydrogen iInformation Systems Ecosystem CONFIDENTIAL COMPAGNIE PLAST

  16. Slide 16: New customers

    Delivering outperformance  16 New customers AMERICAS 15 EUROPE 23 ASIA 20 CHINA 34 Beijing Auto Senova Changhe Dongfeng GAC 92 customers globally … + 9 added in H1 2019 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  17. Slide 17: 2019 Half-Year Results

    2019 Half-Year Results

  18. Slide 18: Economic sales: +0.2% at constant change and perimeter

    Economic sales: +0.2% at constant change and perimeter 18 ∆ ∆ at constant In €m H1 2018 H1 2019 perimeter & in % exchange rate PO Industries 3,445.7 3,458.3 +0.4% -1.2% PO Modules 375.1 1,152.7 na +4.7% Economic sales 3,820.9 4,611.0 +20.7% +0.2% JVs 631.3 342.7 na +4.5% Consolidated sales 3,189.6 4

  19. Slide 19: Outperformance of the automotive production

    Outperformance of the automotive production 19 Auto production H1 2019: 43.7 million vehicles -6.9% H1 2018: 47.0 million vehicles Outperformance: +7.1pts Plastic Omnium sales +0.2% at constant perimeter and exchange rate CONFIDENTIAL Source: IHS July 2019 COMPAGNIE PLASTIC OMNIUM

  20. Slide 20: Outperformance in each region

    Outperformance in each region 20 NORTH AMERICA EUROPE CHINA Outperformance +10.2pt Outperformance +4.9pt Outperformance +13.5pt Auto production -2.9% Auto production -8.0% Auto production -14.4% PO sales +7.3% PO sales -3.1% PO sales -0.9% 1.4 SOUTH AMERICA ASIA (excl. CHINA) Outperformance +2.7pt O

  21. Slide 21: H1 2019 economic sales per region

    H1 2019 Economic sales per region 21 2% 8% South America Asia (excluding China) 16% Asia 8% China 54% Europe 28% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  22. Slide 22: H1 2019 economic sales by OEM

    H1 2019 Economic sales by OEM 22 1% 15% Others TOP 10 CUSTOMERS French 1 Audi 9.4% 2 PSA 8.9% 3 Volkswagen 8.6% 42% 4 BMW 8.2% German 5 General Motors 7.9% 21% 6 7 Daimler Ford 7.8% 6.8% Asian 8 Chrysler 6.6% 9 Renault 6.0% 21% 10 Jaguar Land Rover 4.9% American CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM

  23. Slide 23: H1 2019 profitability by business

    H1 2019 Profitability by business 23 In €m H1 2018 % sales H2 2018 % sales H1 2019 % sales Consolidated sales 3,189.6 100% 4,055.0 100% 4,268.3 100% PO Industries 3,189.6 100% 3,098.2 76% 3,207.5 75% PO Modules 0.0 0% 956.9 24% 1,060.7 25% Operating Result 324 10.2% 286 7.1% 281 6.6% PO Industries 3

  24. Slide 24: H1 2019 Profit & Loss account

    H1 2019 Profit & Loss account 24 In €m H1 2018 H1 2019 Economic sales 3,820.9 4,611.0 Consolidated sales 3,189.6 4,268.3 EBITDA 457.0 510.7 In % of sales 14.3% 12.0% Operating margin 323.8 281.0 In % of sales 10.2% 6.6% Other operating expenses -9.9 -25.0 In % of sales -0.3% -0.6% Financial expenses

  25. Slide 25: H1 2019 Cash-flow statement

    H1 2019 Cash-flow statement 25 In €m H1 2018 H1 2019 Consolidated Sales 3,189.6 4,268.3 Net Debt (beginning of the period) -571 -698 Net Operating Cash Flow +422 +464 in % of sales +13.2% +10.9% Taxes & Net Financial Interest paid -83 -73 Capex and development -271 -308 in % of sales -8.5% -7.2% Cha

  26. Slide 26: H1 2019 key financial metrics after IFRS16 impact

    H1 2019 Key financial metrics after IFRS16 impact of €234m 26 EBITDA NET DEBT NET DEBT/EBITDA (in m€) (in m€) 511 457 461 1.1 1.1 992 1,021 698 0.8 7.3% 6.4% H1 2018 H2 2018 H1 2019 H1 2018 2018 H1 2019 H1 2018 2018 H1 2019 SHAREHOLDERS’ GEARING ROCE EQUITY (in m€) 2,188 2,231 54% 22% 21% 1,853 46%

  27. Slide 27: 2019 Outlook

    2019 Outlook

  28. Slide 28: Delivering in a market we expect down -4.5%

    Delivering in a market we expect down -4.5% 28 Automotive Production assumptions : 2019 Financial outlook (In million vehicules) -4,5%  Outperformance > 5 points -3,8%  Operating margin 91.3 slightly below 2018 (€610m) 87.8  EBITDA 2019 > EBITDA 2018 ˜ 87.0  €200m free cash flow after 6% investm

  29. Slide 29: Delivering in a market we expect flat

    Delivering in a market we expect flat 29 Plastic Omnium No market rebound expected in market assumptions: the next 2 + years Flat  Delivering 5 points outperformance  Ongoing cost reduction programmes  Investments capped at 6% of sales  Free cash flow > €200m / year 2019 2020 2021 CONFIDENTIAL C

  30. Slide 30: 2019 Half-Year Results

    2019 HALF-YEAR RESULTS LEVALLOIS, JULY 19TH, 2019

Plastic Omnium — H1 2019 Earnings Presentation on 6ix