Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — Investor Day (December 2016)
59 slides from Opmobility's investor day presentation, Dec 13, 2016
Slide 1: Investor Day: Strategy and Innovation
Investor Day Strategy and Innovation Laurent Burelle, Chairman & CEO Jean-Michel Szczerba, Board Member & Co-CEO Levallois - December 13, 2016
Slide 2: Contents
CONTENTS An independent family group with a strong DNA Markets and positioning Strategy & financial outlook by 2020 Our answers beyond 2020
Slide 3: An independent family group with a strong DNA
An independent family group with a strong DNA
Slide 4: Our mission
OUR MISSION 4 A worldwide leader in the automotive industry and in municipality services, majority owned by the founding family, operationally committed to long term development through industrial excellence and innovation CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 5: An independent family owned group
AN INDEPENDENT FAMILY OWNED GROUP 5 Shareholding structure of Compagnie Plastic Organization chart Omnium as of June 30th 2016 % equity capital Burelle Family 77.5% Free Float Burelle SA 39.11% 57.01% Treasury 5.2% 17.3% shares Burelle SA Public 57.01% Compagnie Plastic Omnium Treasury Shares 2.81%
Slide 6: With a strong DNA
6 WITH A STRONG DNA Independence Integration Investment International Innovation COMPAGNIE PLASTIC OMNIUM
Slide 7: Plastic Omnium today
PLASTIC OMNIUM TODAY 7 23 Ranking 130 R&D 3,000 centers R&D engineers plants auto 3,500 supplier 31 patents countries A Worldwide With a Global & Focused on Leader Footprint Innovation COMPAGNIE PLASTIC OMNIUM
Slide 8: A fast growing and profitable company
A FAST GROWING AND PROFITABLE COMPANY 8 PO & WW SUPPLIERS REVENUE GROWTH PO & WW SUPPLIERS EBIT GROWTH (base 100 – 2007) 223 10% 9.4% 220 7.4% 134 6% 105 100 Plastic Omnium Top Low Average Plastic Omnium Top Low Average 2007 2009 2011 2013 2015 2007 2009 2011 2013 2015 Sources: Lazard, Roland Berger
Slide 9: 2016 sales
2016 SALES 9 2016 Proforma Economic Sales: ~€7.5bn • including the acquisition of Faurecia Auto Exterior (proforma contribution for 2016) • including the Group’s joint ventures, consolidated at their percentage of ownership: ownership: HBPO (33%): €685M€ YFPO (50%): €350M BPO (50%): €35M Front-End M
Slide 10: What we do
WHAT WE DO 10 Emission Reduction Quality Engineering Weight Logistics Reduction CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 11: What we do: exterior components and fluid management
WHAT WE DO 11 CUSTOMIZED MULTI-MATERIAL SOLUTIONS OF ONBOARD FLUID EXTERIOR COMPONENTS AND MODULES MANAGEMENT SYSTEMS Production in million units/year Bumpers Front-End Modules Fuel systems 27M units 5M units 19M units Composite INNOVATION Tailgates Fenders: 1.5M units structural parts SCR systems 1
Slide 12: Leadership position in the bumper business
LEADERSHIP POSITION IN THE BUMPER BUSINESS 12 Global Market Share (2016) #1 worldwide #1 in Europe Steel 3% #3 in North America #1 in China In-house 34% 27 million bumpers/year 1 vehicle in 7 Others equipped worldwide (<3% of market share) 38% Plastic Omnium 15% Motherson-SMP 3% Magna 7% CONFIDENTIA
Slide 13: Leadership position in the front-end module business
LEADERSHIP POSITION IN THE FRONT-END MODULE BUSINESS 13 Global Market Share (2016) #1 worldwide In-house 24% HBPO Joint-Venture: Others 1/3 Plastic Omnium (≤5% of market 5.4 million assembled and 1/3 Hella share) 27% sequenced annually 1/3 Mahle-Behr Magna 6% Key figures 2016 Sales: €2 Bn HBPO Group
Slide 14: Leadership position in the fuel systems business
LEADERSHIP POSITION IN THE FUEL SYSTEMS BUSINESS 14 Global Market Share (2016) #1 worldwide #1 in Europe Others #1 in North America (≤5% of market share) 20% #2 in China Steel 21% 19 million systems/year 1 vehicle in 5 equipped worldwide TI Automotive 11% Plastic Omnium 21% Yapp 12% Kautex 15% CONFI
Slide 15: Waste reduction: waste container solutions
WHAT WE DO 15 WASTE CONTAINER SOLUTIONS FOR LOCAL COMMUNITIES AND COMPANIES Equipment for waste containerisation #1 worldwide 100 million Service of installation, maintenance, washing 4 million bins and containers waste containers installed per year Hardware and software solutions for waste installe
Slide 16: Market and positioning
Market and positioning
Slide 17: A growing market
A GROWING MARKET 17 17 A growing industry World Asia First automotive market 2016- Stricter and 2020 stricter regulations COMPAGNIE PLASTIC OMNIUM
Slide 18: 2016-2020 worldwide automotive production: +11%
2016-2020 WORLDWIDE AUTOMOTIVE PRODUCTION: +11% 18 +11% +0.3 98.5 +2.3 -0.2 +0.4 +4.0 +1.2 +1.3 89.0 EUROPE NORTH SOUTH CHINA SOUTH JAPAN MIDDLE 2016 AMER. AMER. ASIA KOREA EAST 2020 Source: IHS November 2016 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 19: Strategy to outperform the market
PLASTIC OMNIUM’S STRATEGY TO OUTPERFORM THE MARKET 19 NORTH New EUROPE & capacities AMERICA AFRICA ASIA 19 Plants 66 Plants 38 Plants of which 10 from the of which 25 acquisition of FAE in China Better loading China : better of existing loading of footprint existing Integration of SOUTH Faurecia Aut
Slide 20: Turnaround the business by 2019
SUCCEEDING THE INTEGRATION OF FAURECIA AUTO EXTERIOR VISION 12 INDUSTRY 20 4.0 WHAT HAS BEEN ALREADY ACHIEVED WHAT WILL BE IMPLEMENTED Merge of the 2 organizations completed Implementation of Plastic Omnium’s manufacturing system Program portfolio cleaning Continuous reduction of break-even point 3
Slide 21: Taking advantage of our Chinese footprint (1/2)
TAKING ADVANTAGE OF OUR CHINESE FOOTPRINT (1/2) 21 STRONG MARKET SHARES GAINS IN CHINA 2016 In-house Plastic Omnium 2020 In-house 25% 20% 22% Plastic Omnium 25% Bumpers Steel Steel No.1 No.1 26% 22% Fuel 31% 28% Systems Plastic Omnium 9% Plastic Omnium 16% CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 22: Taking advantage of our Chinese footprint (2/2)
TAKING ADVANTAGE OF OUR CHINESE FOOTPRINT (2/2) 22 INCREASED PENETRATION WITH CHINESE OEMS Chinese OEMs 2016 14% 2020 Chinese OEMs 23% PO’s Chinese customers : BAIC, Brilliance, GAC, Geely, Haitec, JAC, Luxgen, NextEV, Qiantu Auto, SAIC A STRONG OPERATING LEVERAGE THANKS TO BETTER LOADING 25 70% 26
Slide 23: Sizing the growth with new capacities
SIZING THE GROWTH WITH NEW CAPACITIES 23 NEW CAPACITIES UNDER CONSTRUCTION Mexico - Leon China - Chongqing United States - Smyrna Fuel systems for Daimler, Fuel systems for HMC Fuel systems for Nissan General Motors and Nissan 2016 2017 2018 Mexico - San Luis Potosi India - Hansalpur Bumpers for Gen
Slide 24: Benefitting from stricter CO2 emission regulations (1/2)
BENEFITTING FROM STRICTER CO2 EMISSION REGULATIONS (1/2) 24 AVERAGE NEW VEHICLE CO2 EMISSIONS (gr./km) - REGULATIONS IN EUROPE 140 gr./km 130 120 -35gr. of CO2 emissions 100 95 by 2021 compared to 2015 80 60 40 20 0 2015 2021 Catégorie 1 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 25: Benefitting from stricter CO2 emission regulations (2/2)
BENEFITTING FROM STRICTER CO2 EMISSION REGULATIONS (2/2) 25 Plastic Omnium Offer: Lightweighting and Aerodynamism 20gr. CO2 SAVED CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 26: Benefitting from stricter NOx emission regulations (1/2)
BENEFITTING FROM STRICTER NOx EMISSION REGULATIONS (1/2) 26 AVERAGE NEW VEHICLE NOx EMISSIONS (mg/km) – REGULATIONS IN EUROPE 200 180 180 160 140 120 -78% of NOx emissions 100 compared to 2010 80 60 ~40* 40 20 0 2010 >2020 Catégorie 1 * Not yet completely defined CONFIDENTIAL COMPAGNIE PLASTIC OMNIU
Slide 27: Benefitting from stricter NOx emission regulations (2/2)
BENEFITTING FROM STRICTER NOx EMISSION REGULATIONS (2/2) 27 Plastic Omnium Offer: SCR systems Up to -95% of NOx emission CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 28: Well positioned in the SCR business
WELL POSITIONED IN THE SCR BUSINESS 28 Global Market Share 2010 2016 2020 Plastic Omnium Plastic Omnium Plastic Omnium 0.1% 17% 26% Total Market: 0.2 M units Total Market: 6 M units Total Market: 11 M units CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 29: Innovation as a growth driver
INNOVATION AS A GROWTH DRIVER 29 Sales in m€ 2016 2020 SCR Systems/TSBM/INWIN Systems/TSBM/INWIN 500 1,000 Tailgates / Spoilers / 200 400 Structural Parts x2 TOTAL 700 1,400 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 30: Outlook for 2020
Outlook for 2020
Slide 31: Aiming high in terms of growth
AIMING HIGH IN TERMS OF GROWTH 31 CONSOLIDATED & ECONOMIC SALES ~€9.5bn ~€8bn +60% €6bn Including disposals of: €5bn • Signature Limited • A playground manufacturing plant in France €400m • PO Emballagen GmbH Consolidated sales • Truck business (project) Economic sales And program portfolio cleaning
Slide 32: Strong visibility on our activity
STRONG VISIBILITY ON OUR ACTIVITY 32 ORDER BOOK: 90% OF 2020 SALES ALREADY SECURED 10% 20% NON BOOKED NEW REPLACEMENT TO BOOK BOOKED 100% 97% 85% 70% 2017 2018 2019 2020 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 33: Gain in market shares
GAIN IN MARKET SHARES 33 2016 2020 Bumpers 15% 19% Fuel systems 21% 25% CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 34: Drivers to reach our targets
DRIVERS TO REACH OUR TARGETS 34 AMBITIOUS INVESTMENT POLICY OF €2.5BN OVER THE 2016-2020 PERIOD WHILE MAINTAINING A SIGNIFICANT FREE CASH-FLOW DEVELOP INDUSTRY 4.0 THROUGH DIGITALIZATION ENLARGE THE INNOVATION CAPABILITIES & PORTFOLIO CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 35: By developing Industry 4.0
BY DEVELOPING INDUSTRY 4.0 35 MARKET TRADITIONAL ADDITIONAL EXPECTATIONS RESPONSES RESPONSE O default mindset Quality Lessons learned Continuous INDUSTRY Cost improvement 4.0 Low cost sourcing DIGITALIZATION Standardization Speed Early staffing CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 36: Industry 4.0 objectives
INDUSTRY 4.0 OBJECTIVES 36 Move from reporting to prediction to make a breakthrough TODAY GOAL REDUCE COSTS AND CAPITAL EMPLOYED CONNECT MONITOR ANALYZE ANALYZE PREDICT OPTIMIZE CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 37: Our answers beyond 2020
Our answers beyond 2020
Slide 38: A dedicated organization to boost innovation
A DEDICATED ORGANIZATION TO BOOST INNOVATION 38 α Alphatech PO LAB Σ R&D Venture Capital, Sigmatech Market 4.0, Universities, etc… Watch Chief ι Scientist Ι-Tech ∆ Ξ Deltatech POCellTech Advanced Future CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM Research Powertrain
Slide 39: The autonomous and connected market as an opportunity
THE AUTONOMOUS AND CONNECTED MARKET AS AN OPPORTUNITY 39 WHATEVER TOMORROW’S CAR IS, IT WILL ALWAYS HAVE AN ENVELOPE MORE AND MORE… intelligent light modular energizing stylish CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 40: Advantages of plastic to respond to our challenges
ADVANTAGES OF PLASTIC TO RESPOND TO OUR CHALENGES 40 PLASTIC IS CONFORMABLE AND ADAPTABLE PLASTIC IS THE BEST MATERIAL FOR A FREEDOM OF DESIGN DUE TO ITS TRANSPARENCY TO RADAR WAVES TRANSPARENT BLOCKING CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 41: This envelope will be intelligent
THIS ENVELOPE WILL BE INTELLIGENT 41 Plastic Omnium Offer: a smarter body panel to be intelligent developed within 5 years light Shape memory materials Luminous panels De-icing panels Embedded electronics Envelope full of technological functionality aerodynamic COMPAGNIE PLASTIC OMNIUM
Slide 42: This envelope will be modular
THIS ENVELOPE WILL BE MODULAR 42 Plastic Omnium Offer: integration and architecture of complex active and interactive modules toward more functions integration and production of full subsets CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 43: Plastic Omnium's pathways to make it happen
PLASTIC OMNIUM’S PATHWAYS TO MAKE IT HAPPEN 43 NEW skills in complex module integration system/conception/architecture, mechatronic, electronic, motorization, lighting… NEW and bigger NEW materials plastic parts carbon fiber, hood, roof, doors, smart materials… chassis frame… CONFIDENTIAL COMPAGNIE
Slide 44: A full range offer for each type of powertrain
A FULL RANGE OFFER FOR EACH TYPE OF POWERTRAIN 44 Energy storage, production and delivery COMPAGNIE PLASTIC OMNIUM
Slide 45: Expected powertrain mix in the future
EXPECTED POWERTRAIN MIX IN THE FUTURE 45 ICE = 80% 2030 2040 Source: external and PO’s reports COMPAGNIE PLASTIC OMNIUM
Slide 46: Plug-in hybrid: lead the market
PLUG-IN HYBRID: LEAD THE MARKET 46 DEVELOPMENT OF HIGH PRESSURIZED SYSTEMS FOR PLUG-IN HYBRID VEHICLES Plug-in hybrid (PEHV): growing market Substitution benefit from metal to plastic 8 models for 4 different carmakers in backlog Start of production in December 2016 CONFIDENTIAL COMPAGNIE PLASTIC OM
Slide 47: Addressing the sustainability challenge
OTHER POWERTRAIN: ADDRESSING THE MARKET 47 ON-GOING TRANSFORMATION OF THE BUSINESS ADDRESSING THE SUSTAINABILITY CHALLENGE WE PREPARE OURSELVES TO BECOME A LEADER FOR ENERGY STORAGE, PRODUCTION AND DELIVERY CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 48: Three real challenges for pure electric
THREE REAL CHALLENGES FOR PURE ELECTRIC 48 AUTONOMY CHARGE TIME COST How far the car can go How long it takes to To OEMs and on a full charge (re-)charge the car thus to consumers COMPAGNIE PLASTIC OMNIUM
Slide 49: Fuel cell versus pure electric
FUEL CELL VERSUS PURE ELECTRIC 49 PURE ELECTRIC FUEL CELL FUEL CELL ENGINE AS OF TODAY AS OF TODAY FUTURE Maximum range 600 km 400 km 600 km 800 km Weight of system 200 kg 700 kg 270 kg 270 kg Time 30 mn to 10 needed to hours refill / 3-4 minutes 3-4 minutes 3-4 minutes depending on recharge charger
Slide 50: Energy storage & fast delivery: the supercapacitor
ENERGY STORAGE & FAST DELIVERY: THE SUPERCAPACITOR 50 WE ARE WORKING ON A NEW SUPERCAPACITOR CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 51: Supercapacitor: automotive applications
SUPERCAPACITOR: AUTOMOTIVE APPLICATIONS 51 Peak power assist PEAK POWER ASSIST Supercapacitors’ • Advantages integration roadmap o Full recuperation of brake energy Example : Toyota TS040 o Maximum boost (Le Mans LMP1 series) REGENERATIVE BRAKING • Advantages o All advantages of Start-Stop Regenerat
Slide 52: Fuel cell vehicle
FUEL CELL VEHICLE 52 source : NREL / Alternative Fuels Data Center COMPAGNIE PLASTIC OMNIUM
Slide 53: Energy storage: pressurized H2 tank system
ENERGY STORAGE: PRESSURIZED H2 TANK SYSTEM 53 WE ARE WORKING ON A H2 STORAGE SYSTEM • 2 vessels made from wound carbon fiber • Safety valves & pressure regulator • Must support 700 bars of pressure • Charge time: 3 minutes COMPAGNIE PLASTIC OMNIUM
Slide 54: Energy production: the fuel cell
ENERGY PRODUCTION: THE FUEL CELL 54 SOLUTION OF TOMORROW: WE ARE WORKING ON A NEW FUEL CELL PO-CELLTECH 80° 80°C e- heat 02 H2 H+ Technion H2O Anode Cathode Polymer H2 → 2H+ + 2e- electrolyte O2 + 4H+ + 4e- → 2H2O membrane 2H2 + O2 → 2H2O CONFIDENTIAL 2 e-/H2 COMPAGNIE PLASTIC OMNIUM
Slide 55: Advanced research: PO CellTech
ADVANCED RESEARCH: PO CELLTECH 55 Start-up with ELBIT Systems, PO-CELLTECH an Israeli company Pure research SUPERCAPACITOR Focused primarily on fuel cells and supercapacitors FUEL CELL Already 100 engineers in Belgium and Israel dedicated to the project COMPAGNIE PLASTIC OMNIUM
Slide 56: Plastic Omnium will be ready for new energies
IN SHORT: PLASTIC OMNIUM WILL BE READY FOR NEW ENERGIES 56 The NEW Brussels based €50 M investment Advanced Innovation & Research Center 200 engineers COMPAGNIE PLASTIC OMNIUM
Slide 57: Conclusion
CONCLUSION 57 Continue to deliver ambitious growth and to outperform the market Continue to generate benchmark EBITDA and ROCE Continue to increase earnings to distribute a growing dividend at a constant 25% pay-out Pursue a policy of occasional share buybacks based on availability and opportunities
Slide 58: Ready for the future
READY FOR THE FUTURE 58 COMPAGNIE PLASTIC OMNIUM
Slide 59: Investor Day: Strategy and Innovation
Investor Day Strategy and Innovation Levallois - December 13, 2016