Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — FY2018 Earnings Presentation
38 slides from Opmobility's earnings presentation, Feb 14, 2019
Slide 1: 2018 Results
2018 RESULTS LEVALLOIS, FEBRUARY 14TH, 2019
Slide 2: Long term strategy
Long term strategy 2 Connected AUTOMOTIVE Autonomous LONG TERM TRANSFORMATION Shared Electric • Independent family group PLASTIC OMNIUM • Automotive pure player with leadership positions STRATEGY • Innovation focused • Family control from 57.57% to 58.51% 2018 MILESTONES • Disposal of the Environmen
Slide 3: Facing a challenging environment
Facing a challenging environment 3 • Volatility and uncertainties SHORT TERM THREATS / • 1st decrease in the automotive production since 2009 OPPORTUNITIES • Opportunities for potential strategic & technological investments • Flat market assumption PLASTIC OMNIUM STRATEGY • Anticipation rather than
Slide 4: Delivering a solid 2018 year
Delivering a solid 2018 year 4 • €8.2Bn of economic sales (€9Bn proforma): +7.6% GROWTH & • Outperformance of the auto production: +3.4pts OUTPERFORMANCE • Growth in each geographical area • Operating margin: €610m, 8.4% of sales SOLID P&L • Net result - Group share: €533m, +25% AND BALANCE SHEET •
Slide 5: 2018 Highlights
2018 Highlights
Slide 6: A pure automotive player
A pure automotive player 6 Takeover • Increase in stake from 1/3 to 2/3 HBPO • €350m enterprise value for 1/3 world leader • 2018: €2Bn of sales; 2021: €3Bn in front-end modules • 6 million of front-end modules assembled in 25 sites Disposal ENVIRONMENT • Closing on December 18, 2018 DIVISION • €220
Slide 7: A new organisation with 2 different business models
A new organisation with 2 different business models 7 PLASTIC OMNIUM INDUSTRIES PLASTIC OMNIUM MODULES Intelligent Exterior Clean Energy Systems Systems Production activities Assembly activities 99 plants - 22 countries 25 sites - 11 countries Capital intensive High ROCE CONFIDENTIAL COMPAGNIE PLAST
Slide 8: A new organization to serve our customers
A new organization to serve our customers 8 + 4 new customers in 2018 +1 customer in North America +3 customers in Asia Zhonghua A total of 83 customers worldwide CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 9: A global industrial footprint: 124 plants in 26 countries
A global industrial footprint: 124 plants in 26 countries 9 +4 plants in North America San Luis Potosi Greer Aguascalientes Smyrna 2017 2018 +4 plants in Asia Changchun Chongqing Hansalpur Shenyang Benefiting from the ramp-up of 8 plants started in 2017/2018 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 10: 4.0 industry deployment
4.0 industry deployment 10 Total investment of €200m capital employed Full deployment by 2022 margin CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 11: Innovation as a growth driver
Innovation as a growth driver 11 Produced in 2018 Awarded in 2018 TAILGATES & 71 programs 30 new contracts SPOILERS 13 customers 4 new customers 3.6m tailgates & spoilers produced in 2018 o.w 2 new EV customers SCR SYSTEMS 35 programs 14 in Europe, 17 in North America & 4 in Asia 7 new contracts 10
Slide 12: Creation of Plastic Omnium New Energies
Creation of Plastic Omnium New Energies 12 A dedicated team & investment program for New Energies: Plastic Omnium New Energies created in January 2018 €200 M 2018 - 2022 PROGRAM CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 13: Technological alliances to develop innovative solutions
Technological alliances to develop innovative solutions 13 + + = = Innovative co-development project Innovative co-development project on integrated to develop an all-new side door system solutions, combining exterior body parts and lighting CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 14: CSR as a performance driver
CSR as a performance driver 14 RESPONSIBLE Ethics: ENTREPRENEURSHIP Tolerance Zero ATTENTION TO Gender and compensation equality: EMPLOYEES increase of executive women from 12% to 20% by 2025 SUSTAINABLE CO2 emissions: PRODUCTION reduction by 20% by 2025 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 15: 2018 Annual Results
2018 Annual Results
Slide 16: Outperformance of the automotive production
Outperformance of the automotive production 16 Auto production 2018: 91.3 million of vehicles -1.0% 2017: 92.3 million of vehicles Outperformance: +3.4pts Plastic Omnium sales +2.4% at constant perimeter and exchange rate CONFIDENTIAL Source: IHS January 2019 COMPAGNIE PLASTIC OMNIUM
Slide 17: 2018 sales by business
2018 sales by business 17 ∆ ∆ at constant In €m 2017 2018 perimeter & in % exchange rate PO Industries 6,924.9 6,833.6 -1.3% +2.8% PO Modules 740.3 1,410.3 +90.5% +0.5% Economic sales 7,665.1 8,243.9* +7.6% +2.4% PO Industries 6,433.0 6,287.8 -2.3% +2.0% PO Modules 0.0 956.9 na na Consolidated sales
Slide 18: Outperformance per region
Outperformance per region 18 NORTH AMERICA EUROPE CHINA Outperformance +1.8pt Outperformance +3.5pt Outperformance +14.3pt Auto production -0.7% Auto production -1.8% Auto production -3.5% PO sales +1.1% PO sales +1.7% PO sales +10.8% 1.4 SOUTH AMERICA ASIA (excl. CHINA) Outperformance -0.6pt Outper
Slide 19: 2018: successful launches
2018: 178 successful launches 19 Americas Europe Asia 27 launches 65 launches 86 launches o/w. o/w. o/w. CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 20: 2018 Economic sales per region
2018 Economic sales per region 20 7% 2% Asia (excluding China) South America 10% China 55% Europe 26% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 21: 2018 Economic sales by customer
2018 Economic sales by customer 21 1% TOP 10 CUSTOMERS 15% Others 1 PSA 10.0% French 38% 2 GM 9.1% German 3 Volkswagen 8.3% 4 Ford 8.3% 5 Audi 7.8% 6 BMW 7.1% 7 Daimler 7.0% 8 Jaguar Land Rover 5.8% 22% American 24% 9 10 Chrysler Renault 5.0% 5.0% Asian CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 22: Sharp disparity between H1 and H2
Sharp disparity between H1 and H2 22 Plastic Omnium revenue H1 2017 H1 2018 Change Automotive Surperformance (in €m) LFL production vs auto prod Total 3,894.3 3,820.9 +4.8% +2.3% +2.5% o.w China 337.8 362.8 +13.7% +4.5% +9.2% o.w Germany 644.7 656.6 +3.5% -1.9% +5.4% Plastic Omnium revenue H2 2017 H
Slide 23: 2018 Profitability by business
2018 Profitability by business 23 ∆ In €m 2017 % sales 2018 % sales in % Consolidated sales 6,433.0 100% 7,244.6 100% +12.6% PO Industries 6,433.0 100% 6,287.8 87% -2.3% PO Modules 0.0 0% 956.9 13% na EBITDA 892.5 13.9% 918.2 12.7% +2.9% PO Industries 877.4 13.6% 864.8 13.8% -1.4% PO Modules 15.1 na
Slide 24: 2018 Profit & Loss account
2018 Profit & Loss account 24 In €m 2017 2018 ∆ in % Consolidated sales 6,433.0 7,244.6 +12.6% Operating margin 614.7 610.1 -0.8% In % of sales 9.6% 8.4% Other operating expenses -57.3 +114.4 Financial expenses -65.7 -70.2 Income Tax -81.3 -113.0 Effective tax rate -18.9% -18.8% Net Result 430.5 542
Slide 25: 2018 Proforma
2018 Proforma 25 2018 proforma figures i.e. taking into account HBPO fully consolidated as of January 1st, 2018 In €m 2018 Proforma Economic Sales 8,955.7 Consolidated Sales 8,259.5 Operating Result 628.1 In % of consolidated sales 7.6% Net Result Group share 537.5 EBITDA 953.3 In % of consolidated
Slide 26: 2018 Cash-flow statement
2018 Cash-flow statement 26 In €m 2017 2018 Sales 6,433 7,245 Net Debt (beginning of the period) -811 -571 Net Operating Cash Flow +823 +797 in % of sales 12.8% 11.0% Taxes & Net Financial Interest paid -165 -149 Capex and development -447 -562 in % of sales 7.0% 7.8% Change in WCR -34 +132 Free Cas
Slide 27: 2018 Key financial metrics
2018 Key financial metrics 27 EBITDA NET DEBT NET DEBT/EBITDA (in m€) (in m€) 810 892 918 800 698 1.0 571 0.8 0.6 7.3% 6.4% 2016 2017 2018 2016 2017 2018 2016 2017 2018 SHAREHOLDER’S GEARING ROCE EQUITY (in m€) 2,188 53% 26% 1,761 24% 1,516 21% 32% 32% 7.3% 6.4% 2016 2017 2018 2016 2017 2018 2016 20
Slide 28: Strengthened independence
Strenghtened independence 28 FAMILY CONTROL REINFORCEMENT BENCHMARK PRIVATE PLACEMENT Plastic Omnium capital structure as of December 31st, 2018 • €300m Schuldscheindarlehen Burelle SA (private placement under German law) Free Float 58.51% 38.98% • 7 years – 1.6% fixed coupon • No covenant – No rati
Slide 29: Compagnie Plastic Omnium
CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 30: Lack of visibility: management assumption of a flat market
Lack of visibility management assumption of a flat market 30 2018 automotive production forecast, regularly downgraded since July 2018, to end at -1.0% 95 +2.4% +2.2% 94 +1.9% +1.4% 93 +0.7% Flat market assumption 92.3 +0.0% 92 -0.5% 91.3 -1.0% 91 90 2017 2018 2018 2018 2018 2018 2018 2018 2019 (I
Slide 31: Lack of visibility: strengthening of PO golden rules
Lack of visibility strengthening of PO golden rules 31 More More More free-cash cost industrial flow reduction excellence Capex ~6% of sales Total flex 4.0 deployment CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 32: Selective industrial capex to gain market shares
Selective industrial capex to gain market shares 32 2019 2020 2021 INTELLIGENT EXTERIOR SYSTEMS India Morroco Slovakia China Pune Kenitra Hlolovec Hangzhou CLEAN ENERGY +9 plants SYSTEMS Malaysia Kuala Lumpur MODULES Mexico Germany China Germany Saltillo Vaihingen Nanjing Saarbrücken CONFIDENTIAL CO
Slide 33: Selective R&D capex to develop innovative solutions
Selective R&D capex to develop innovative solutions 33 Brussels, Belgium Advanced Research center • Prepare the future New Energies Wuhan, China • Support the growth in Asia New R&D center • Positioning PO in the Chinese Clean Energy Systems hydrogen market Lyon, France Expansion & digitalization •
Slide 34: Total flex
Total flex 34 FLEX CONTINUOUS OPERATION ADAPTATION REDUCE INDIRECT & STRUCTURE COSTS PRESERVE 6% OF SALES DEDICATED TO R&D CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 35: 2019 Guidance
2019 Guidance 35 2019 Guidance in the framework of our 2019-2021 strategic plan presented on December 13, 2018 Economic Sales 5 points outperformance vs auto production Consolidated Sales Operating Result Increase in value Free cash-flow >€200m free cash-flow after 6% investments CONFIDENTIAL COMPAG
Slide 36: Dividend: +10%
Dividend: +10% 36 Dividend evolution (in €) +10% Proposed dividend of 0.67 0.74 €0.74 per share 0.49 +10% 0.37 0.41 20% payout 2014 2015 2016 2017 2018 • Shareholders’ meeting on April 25th, 2019 at 5pm (Pavillon Dauphine - Paris) • Payable on May 6th, 2019 • Compagnie Plastic Omnium (SA) transforma
Slide 37: 2018 Results
2018 RESULTS LEVALLOIS, FEBRUARY 14TH, 2019
Slide 38: Glossary
Glossary • The economic revenue reflects the Group's operational and managerial reality. It corresponds to the consolidated sales plus the sales of the Group's joint ventures at the Group's percentage stake: BPO (50%) and YFPO (50%) and HBPO for 33.33% until its full consolidation on July 1st, 2018.