Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — FY2017 Earnings Presentation
40 slides from Opmobility's earnings presentation, Feb 15, 2018
Slide 1: 2017 Results
2017 RESULTS LEVALLOIS, FEBRUARY 15TH, 2018
Slide 2: Another record year
Another record year 2 • €8Bn of economic sales: +15% STRONG • Outperformance of the auto production: +9pts GROWTH • Strong growth in each geographical area • Operating margin: 9.5% (vs 9.0% proforma in 2016) BENCHMARK PROFITABILITY • Net result - Group share: €425m, +36% • Solid financial structure
Slide 3: Preparing the future
Preparing the future 3 AUTOMOTIVE • Disposal of the truck business PURE PLAYER • On-going disposal project of the Environment division INDUSTRIAL EXCELLENCE • €500m investments in capacities, quality & restructuring & QUALITY AS A MUST • Ambitious 4.0 Industry program INNOVATION • From Exterior Part
Slide 4: 2017 Highlights
2017 Highlights
Slide 5: Outstanding outperformance of the automotive production
Outstanding outperformance of the automotive production 5 Auto production 2017: 92.1 million of vehicles +2.2% 2016: 90.2 million of vehicles Outperformance: +8.6pts Plastic Omnium Auto sales +10.8% at constant perimeter and exchange rate CONFIDENTIAL Source: IHS January 2018 COMPAGNIE PLASTIC OMNIU
Slide 6: 2017 Results: another record year
2017 Results: another record year 6 Economic sales €8,001m +15%* * Consolidated sales €6,768m +16% Operating margin €641m +15% 9.5% of sales EBITDA €933m +15% 13.8% of sales Net profit - Group share €425m +36% Free Cash Flow €186m Net debt €563m -€237m 32% of equity 0.6x EBITDA CONFIDENTIAL *In spit
Slide 7: Successful integration of the exterior business
Successful integration of the exterior business 7 #1 IN EUROPE • €1Bn of sales & 5,000 people IN EXTERIOR PARTS • Net enterprise value of €402m (after €200m of disposals due to the European Commission) • 2016: merge of the organizations INTEGRATION • 2017: merge of the operations COMPLETED -800 pe
Slide 8: Pure automotive player
Pure automotive player 8 2017 disposal • Effective disposal: June 30, 2017 TRUCK COMPOSITES • Sales of €200m and 1,500 people BUSINESS • Accretive impact on Group’s profitability 2018 project • On-going disposal process ENVIRONMENT • #1 in waste containers in Europe DIVISION • Sales of €335m and 1,8
Slide 9: Ramp-up of new capacities
Ramp-up of 6 new capacities 9 January 2016 June 2016 September 2016 April 2017 May 2017 December 2017 Mexico UK Mexico Mexico China China San Jose Chiapa Warrington Leon San Luis Potosi Changchun Chongqing Front-end Smart Clean Smart Smart Clean modules bodies propulsion bodies bodies propulsion CON
Slide 10: Well-balanced regional footprint of plants in countries
Well-balanced regional footprint of 127 plants in 31 countries 10 EUROPE NORTH AMERICA 62 plants 18 plants Western Europe 44 Mexico 10 Eastern Europe 16 USA 7 Africa 2 Canada 1 ASIA 10 41 plants China 26 SOUTH AMERICA Others 15 6 plants Argentina 3 Brazil 3 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 11: Total of 78 customers of which 25 Chinese and 7 pure electric
+11 new customers in 2017 11 CHINA INDIA 9 new clients 2 new clients including EV new comers Total of 78 customers of which 25 Chinese and 7 pure electric CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 12: SUV as a growth driver
SUV as a growth driver 12 SUV and pick-up drive the growth …and Plastic Omnium benefits of it of the automotive production… 2016-2021 101.2 PO sales SUV & pick-up 90.2 92.1 in Auto sales 43.4 44% 32.5 36.0 43% +11m 2017 8Bn€ SUV/Pick-up 36% 39% 2021 10Bn€ 48% 57.7 56.1 57.8 Car/MPV 64% 61% 57% ≈ 201
Slide 13: Innovation as a growth driver
Innovation as a growth driver 13 Produced in 2017 Awarded in 2017 TAILGATES & On track to 57 programs 21 new contracts SPOILERS 22 customers 5 new customers reach an €255m in sales o.w 3 new EV customers innovative SCR SYSTEMS 19 programs 8 new contracts 6 customers portfolio of 5 new customers €390
Slide 14: Strenghtened independence
Strenghtened independence 14 FAMILY CONTROL REINFORCEMENT BENCHMARK BOND ISSUE Plastic Omnium capital structure as of December 31st, 2017 • €500m – 7 years – 1.25% bond issue Burelle SA Free Float 57.57% • June 2017 39.26% • No covenant – No rating €2BN LIQUIDITY Employees 0.98% Treasury shares 2.19
Slide 15: 2017 Annual Results
2017 Annual Results
Slide 16: 2017 sales by business
2017 sales by business 16 ∆ ∆ at constant In €m 2016 2017 perimeter & in % exchange rate Automotive 6,566.8 7,665.1 +16.7% +10.8% Environment 368.9 335.5 -9.1% +2.5% Economic sales 6,935.7 8,000.6 +15.4% +10.4% Automotive 5,488.3 6,433.0 +17.2% +10.0% Environment 368.9 335.5 -9.1% +2.5% Consolidated
Slide 17: 2017: successful launches
2017: 126 successful launches 17 Americas Europe Asia 23 launches 52 launches 51 launches CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 18: Strong outperformance in all regions
Strong outperformance in all regions 18 NORTH AMERICA EUROPE ASIA (excl. CHINA) Outperformance +19.8pt Outperformance +2.7pt Outperformance +7.9pt Auto production -4.5% Auto production +3.6% Auto production +3.3% PO sales * +15.3% PO sales * +6.3% PO sales * +11.2% 1.4 SOUTH AMERICA CHINA Outperform
Slide 19: 2017 Economic sales per region
2017 Economic sales per region 19 9% 8% China Asia (excluding China) 3% South America 54% Europe 26% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 20: 2017 Auto economic sales by customer
2017 Auto economic sales by customer 20 2% 16% Others TOP 10 CUSTOMERS French 35% 1 2 PSA GM 10.7% 9.8% German 3 Volkswagen 9.6% 4 Ford 9.2% 5 BMW 7.3% 6 Jaguar Land Rover 5.7% 7 Renault 5.5% 22% 8 Daimler 5.4% Asian 25% 9 10 Chrysler Audi 4.9% 4.8% American CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 21: 2017 Profitability by division
2017 Profitability by division 21 ∆ In €m 2016 % sales 2017 % sales in % Consolidated sales 5,857.3 100% 6,768.5 100% +15.6% Automotive 5,488.3 94% 6,433.0 95% +17.2% Environment 368.9 6% 335.5 5% -9.1% EBITDA 810.0 13.8% 933.0 13.8% +15.2% Automotive 769.4 14.0% 897.6 14.0% +16.7% Environment 40.6
Slide 22: Focus on operating margin
Focus on operating margin 22 (in €m and % of consolidated sales) +15% 31 July 2016 Consolidation Acquisition of as of January 1st, 2016 Auto Exterior Business 641 600 582 9.4% 558 8.9% 9.5% 9.5% 500 9.0% 9.1% 400 2016 published 2016 proforma 2017 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 23: 2017 Profit & Loss account
2017 Profit & Loss account 23 In €m 2016 2017 ∆ in % Consolidated sales 5,857.3 6,768.5 +15.6% Operating margin 557.8 641.0 +14.9% In % of sales 9.5% 9.5% Other operating expenses -85.3 -59.2 Financial expenses -67.9 -66.8 In % of sales -1.2% -1.0% Income Tax -86.3 -84.5 Net Result 318.3 430.5 +35.3
Slide 24: 2017 Cash-flow statement
2017 Cash-flow statement 24 In €m 2016 2017 Sales 5,857 6,768 Net Debt (beginning of the period) -268 -800 Net Operating Cash Flow +733 +859 in % of sales 12.5% 12.7% Taxes & Net Financial Interest paid -150 -173 Capex and development -402 -457 in % of sales 6.9% 6.8% Change in WCR +60 -43 Free Cash
Slide 25: 2017 Key financial metrics
2017 Key financial metrics 25 EBITDA NET DEBT NET DEBT/EBITDA (in m€) (in m€) 810 933 800 691 1.0 563 0.6 268 0.4 7.3% 6.4% 2015 2016 2017 2015 2016 2017 2015 2016 2017 SHAREHOLDER’S GEARING ROCE EQUITY (in m€) 1,761 53% 1,516 29.9% 27.6% 1,301 24.1% xxx 32% 21% 7.3% 6.4% 2015 2016 2017 2015 2016 20
Slide 26: Dividend: +37%
Dividend: +37% 26 Dividend evolution (in €) +37% Proposed dividend of 0.67 €0.67 per share 0.49 0.37 0.41 +37% 23% payout 2014 2015 2016 2017 • Agenda • Shareholders’ meeting on April 26th, 2018 at 5pm (Pavillon Dauphine - Paris) • Payable on May 4th, 2018 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 27: Grow the business, improve the results and prepare the future
GROW THE BUSINESS, IMPROVE THE RESULTS AND PREPARE THE FUTURE CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 28: 2018 Auto production: +2%
2018 Auto production: +2% 28 NORTH AMERICA: +2.4% EUROPE: +2.6% ASIA (excl. CHINA): +0.8% 24.2 24.8 22.1 22.3 16.0 16.3 2017 2018 2017 2018 2017 2018 SOUTH AMERICA: +11.7% CHINA: +1.1% 26.8 27.1 3.1 3.4 2017 2018 2017 2018 CONFIDENTIAL Source: IHS January 2018 – in million of vehicles COMPAGNIE PLAS
Slide 29: Plants under construction
6 plants under construction 29 Q1 2018 Q3 2018 Q3 2018 Q2 2019 Q3 2019 Q4 2019 India USA USA Morroco India Slovakia Hansalpur Greer Smyrna Kenitra Pune Hlolovec Clean Smart Clean Smart Smart Smart propulsion bodies propulsion bodies bodies bodies 1st 4.0 plant CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 30: Innovation: reinforcement of R&D to sustain growth
Innovation: reinforcement of R&D to sustain growth 30 Brussels, Belgium 50M€ Innovation Advanced Research center 200 engineers New Energies in key figures 2019 • 3,500 Engineers Wuhan, China 20M€ New development center • 24 R&D Centers 200 engineers for fuel systems in Asia 2019 • 3,700 patents 141
Slide 31: One key driver: People
One key driver: People 31 ATTRACT ATTRACT • RETAIN RETAIN • DEVELOP DEVELOP RACE New competencies • Plastronics to • Mecatronics • TALENTS • Bio and electro chemistry Data science and analytics… CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 32: Roadmap from Exterior Parts to Smart Bodies
Roadmap from Exterior Parts to Smart Bodies 32 2015 Smart bodies 2021 Smart Bodies Lighting ADAS Overmolded Communication & sensors & plastronic decoration lighting technologies Radar integration Strategic investment in February 2018 & protection Specialized in plastronics Radar compliant grill with
Slide 33: From Exterior Parts to Smart Bodies
From Exterior Parts to Smart Bodies 33 Now Tomorrow Connectivity integrator • Design • Lighter modules CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 34: Roadmap from Energy Storage to Clean Propulsion
Roadmap from Energy Storage to Clean Propulsion 34 2015controlled systems Smart electronic Hydrogen Vessels Fuel Cell Water Injection for EV System for ICE Pressurized Tank for PHEV SCR System for diesel CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 35: From Storage to Clean Propulsion
From Storage to Clean Propulsion 35 Creation of PO New Energies: EV through Hydrogen & Fuel Cell 130 engineers - Already €80m expenses spent in 2 years Balance of plant Hydrogen high Fluid & thermal pressure storage management Strategic Strategic acquisition acquisition in 2017 in 2017 Fuel cell JV
Slide 36: High added value provider in the clean & smart car of tomorrow
High added value provider 36 in the clean & smart car of tomorrow Optimal intelligence SMART integration & communication STYLISH Modularization CLEAN Whatever the powertrain CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 37: 2018 Financial outlook
2018 Financial outlook 37 2018 • Moderate outperformance of the auto production • Increase in operating margin and net result • €500-600m of capex • Triple-digit free cash flow CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 38: 2017-2021 Financial outlook
2017-2021 Financial outlook 38 2017 - 2021 • Economic Sales of €10Bn in 2021 (including €1.7Bn of JV shares) • Yearly improvement of operating margin • Capex program of €2.5Bn over the period • More than €1Bn of free cash-flow generated over the period CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 39: 2017 Results
2017 RESULTS LEVALLOIS, FEBRUARY 15TH, 2018
Slide 40: Glossary
Glossary 40 1) Economic sales corresponds to sales including the share from joint ventures in proportion to the Group's shareholding (BPO, HBPO and YFPO for Plastic Omnium Automotive). It reflects the Group's operational and managerial position. 2) In accordance with IFRS 10, 11 and 12, consolidated