Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — FY2020 Earnings Presentation
52 slides from Opmobility's earnings presentation, Feb 18, 2021
Slide 1: 2020 Annual Results
2020 ANNUAL RESULTS Levallois, February 18th, 2021 2020 ANNUAL RESULTS - February 18th, 2021
Slide 2: Introduction
INTRODUCTION Laurent FAVRE 2020 ANNUAL RESULTS - February 18th, 2021
Slide 3: An unprecedented situation
An unprecedented situation Automotive production evolution (In million vehicles) 100 2009 vs 2008: 90 92 91 -12% 86 90 Sharp recovery – pre-crisis 85 86 82 92 levels reached in 2 years 79 90 71.6 88 80 74 85 72 68 81.5 70 65 2020 vs 2019: 57 -17% 60 Recovery to pre-crisis levels will take until mid-
Slide 4: 2020, Strengthening of our fundamentals
2020, Strengthening of our fundamentals OUR OUR OUR OUR TEAMS CUSTOMERS OPERATIONAL FINANCIAL ADAPTATION SOLIDITY 2020 ANNUAL RESULTS - February 18th, 2021 3
Slide 5: H2 2020 financial guidance exceeded
H2 2020 financial guidance exceeded Guidance As of July 23 As of November 25 ACTUAL H2 2020 OPERATING MARGIN ≥ 4% ≥ 5% 5.7% EBITDA ≥ 10% ≥ 10% 11.6% FREE CASH-FLOW €606m ≥ €250m ≥ €400m 2020 ANNUAL RESULTS - February 18th, 2021 4
Slide 6: 2020 Results
2020 Results ECONOMIC SALES POSITIVE OPERATING MARGIN % -14% LFL €118m POSITIVE FREE CASH-FLOW STRONG LIQUIDITY €34m €2.6Bn 2020 ANNUAL RESULTS - February 18th, 2021 5
Slide 7: 2020, Acceleration of market trends
2020, Acceleration of market trends PRESSURE REGIONALIZATION ON PRICES ELECTRIFICATION DIGITALIZATION ESG EXPECTATIONS 2020 ANNUAL RESULTS - February 18th, 2021 6
Slide 8: 2020, Acceleration on our strategic priorities
2020, Acceleration on our strategic priorities OPERATIONAL INNOVATION SUSTAINABILITY EXCELLENCE 2020 ACHIEVEMENTS Omega transformation plan Hydrogen major developments New governance Digitalization Launches of significant BEV programs Sustainability KPIs embedded in performance Modular offer for ele
Slide 9: 2020, Plastic Omnium emerges from the crisis strengthened on its fundamentals
2020, PLASTIC OMNIUM EMERGES FROM THE CRISIS STRENGTHENED ON ITS FUNDAMENTALS Laurent FAVRE 2020 ANNUAL RESULTS - February 18th, 2021
Slide 10: Our Teams
Our Teams Absolute priority given to the safety of our employees MEASURES SET IN ALL SITES 2 PRODUCTION LINES FOR DISPOSABLE to protect Plastic Omnium’s MASKS SET UP IN Σ-SIGMATECH employees (FRANCE) AND PUEBLA (MEXICO) to meet the significant demand for protective equipment 2020 ANNUAL RESULTS - Fe
Slide 11: Our Teams: ACT FOR ALL Covid-19 fund
Our Teams Launch of ACT FOR ALL Covid-19 fund €1m 124 initiatives supported CLINICAL HOSPITAL • SCHOOL • UNIVERSITY • LOCAL ORPHANAGE • UNEMPLOYED PEOPLE • SENIOR AND SOCIAL CARE HOUSE 2020 ANNUAL RESULTS - February 18th, 2021 10
Slide 12: Our Customers
Our Customers Ensure the continuity of our operations and our supply chain A “SAFE RESTART PLAYBOOK” MANAGEMENT OF THE SUPPLY CHAIN applied in all our sites without disruption to our customers 2020 ANNUAL RESULTS - February 18th, 2021 11
Slide 13: Our Customers: New commercial breakthroughs
Our Customers New commercial breakthroughs Tailgates Bumpers/tailgates (BEV) Ford and Lincoln (Mexico) Cadillac Lyriq (USA) Front-end modules (BEV) Tesla Y (China) Rivian pick-up Active Grill Shutter (BEV) and SUV (Canada) for an Amazon special built-van (Canada/USA) Hydrogen vessels (FCEV) Buses (G
Slide 14: Our Customers: Quality awards
Our Customers Quality awards – Customer satisfaction General Motors Supplier of the year in Brazil, Hyundai Kia Motors Thailand and South Korea Excellent Quality Award and Supplier Of The Year Award in Korea Plastic Omnium India Gold Prize General Motors in Industry 4.0 General Motors’ Supplier comp
Slide 15: Our Operational Adaptation
Our Operational Adaptation Rapid adaptation to market conditions -€153m -€87m FLEXIBILITY OF OUR OPERATIONS (2020 vs 2019) STAFF COSTS PRODUCTION COSTS AND SG&A -12% -10% CAPACITY REDUCTION & SYNERGIES Annual Spain savings Germany €40m PLANTS GERMAN FOOTPRINT PAINTLINES REGIONAL CLOSURE Argentina ST
Slide 16: Our Operational Adaptation: Greer recovery
Our Operational Adaptation Recovery of Greer/South Carolina Improvement of industrial KPIs Industrial layout reorganization between Greer and Anderson plants 2021 breakeven objective confirmed New contract with General Motors in South Carolina Lyriq Cadillac (BEV) Bumpers & tailgates 2020 ANNUAL RES
Slide 17: Our Financial Solidity
Our Financial Solidity Preserve the financial strength of the Group NET DEBT COMPARABLE TO 2019 STRONG FINANCIAL STRUCTURE STRENGHTENED LIQUIDITY 2020 ANNUAL RESULTS - February 18th, 2021 16
Slide 18: 2020 Annual Results
2020 ANNUAL RESULTS Adeline MICKELER 2020 ANNUAL RESULTS - February 18th, 2021
Slide 19: 2020 Annual results – key messages
2020 Annual results – key messages Manage a sharp decrease in H1, followed by a better-than-anticipated recovery in H2 Economic sales -14% LFL in 2020 -30% LFL in H1 2020 +2% LFL in H2 2020 Adapt and flex at the maximum level Operating margin €118m in 2020 -€116m in H1 2020 +€234m in H2 2020 Reflect
Slide 20: 2020 Annual results – key messages
2020 Annual results – key messages Preserve cash WCR management Capex reduction -€82m -€138m Free cash-flow +€34m in 2020 in inventories & overdues reduction -27% vs 2019 Maintain strong level of liquidity New credit lines Bond reimbursement Liquidity +€560m €500m of new credit lines in May 2020 €2.
Slide 21: Sales per business
Sales per business ∆ ∆ In €m 2019 2020 Outperformance in % LFL PO Industries 6,919 5,628 -18.7% -17.1% -0.3pt PO Modules 2,264 2,104 -7.0% -3.8% +13.0pts Economic sales 9,183 7,732 -15.8% -13.8% +3.0pts JVs 689 659 -4.4% -1.5% - Consolidated sales 8,494 7,073 -16.7% -14.8% +2.0pts 2020 ANNUAL RESULT
Slide 22: Strong resilience per region
Strong resilience per region NORTH AMERICA EUROPE CHINA ASIA (excl. CHINA) AUTO PRODUCTION -20.7% -22.0% -5.5% -20.0% PO SALES -18.7% -13.7% +0.5% -10.3% OUTPERFORMANCE +2.0pts +8.3pts +6.0pts +9.7pts * Plastic Omnium economic sales like-for-like variation Source: IHS January 2021 2020 ANNUAL RESULT
Slide 23: 2020 Economic sales per region
2020 Economic sales per region ASIA 18% ASIA CHINA Excluding China 11% 7% OTHERS 3% EUROPE 53% NORTH AMERICA 26% 2020 ANNUAL RESULTS - February 18th, 2021 22
Slide 24: 2020 Economic sales per customer
2020 Economic sales per customer 1 Volkswagen Group 25.9% ow Audi 8.9% ow Volkswagen 7.7% ow Porsche 3.9% 2 Stellantis 16.6% ow PSA 9.6% ow Chrysler 5.0% ow Fiat 0.9% 3 Daimler 11.4% 4 General Motors 8.3% 5 BMW 8.2% 6 Renault Nissan Mitsubishi 6.5% ow Renault 5.2% 7 Ford 5.5% 8 Jaguar Land Rover - T
Slide 25: 2020 Profit & Loss account
2020 Profit & Loss account In €m 2019 2020 H2 2019 H2 2020 Consolidated sales 8,494 7,073 4,225 4,111 Cost of materials and parts sold -5,924 -4,979 -2,885 -2,865 In % of sales -69.7% -70.4% -68.3% -69.7% Production costs -1,530 -1,452 -841 -770 In % of sales -18.0% -20.5% -19.9% -18.7% Net Research
Slide 26: 2020 Profitability per business
2020 Profitability per business In €m and % of sales 2019 2020 H2 2019 H2 2020 511 118 230 234 Operating margin 6.0% 1.7% 5.4% 5.7% 460 100 206 205 PO Industries 7.2% 1.9% 6.5% 7.0% 50 19 23 29 PO Modules 2.4% 1.0% 2.3% 2.5% 1,005 648 494 477 EBITDA 11.8% 9.2% 11.7% 11.6% 898 568 441 417 PO Industri
Slide 27: 2020 Profit & Loss account
2020 Profit & Loss account In €m 2019 2020 Operating margin 511 118 In % of sales 6.0% 1.7% Other operating expenses -67 -334 o.w impairments - -255 In % of sales -0.8% -4.7% Financial expenses -78 -69 In % of sales -0.9% -1.0% Income Tax -90 +31 Net Result 276 -253 In % of sales 3.2% -3.6% Net Resu
Slide 28: 2020 Cash-flow statement
2020 Cash-flow statement In €m 2019 H1 2020 H2 2020 2020 Operating margin 511 -116 234 118 EBITDA 1,005 171 477 648 Net operating Cash Flow 746 69 384 453 In % of sales 8.8% 2.3% 9.3% 6.4% Capex and development -512 -226 -148 -374 In % of sales -6.0% -7.6% -3.6% -5.3% Real estate disposal +129 - - -
Slide 29: 2020 Key financial metrics
2020 Key financial metrics NET DEBT (in m€) NET DEBT/EBITDA based on an 739 807 1.2 annualized H2 2020 698 0.8 0.8 0.7 2018 2019 2020 2018 2019 2020 2020 SHAREHOLDERS’ EQUITY (in m€) GEARING 2,347 41% 2,188 1,950 32% 32% 2018 2019 2020 2018 2019 2020 2020 ANNUAL RESULTS - February 18th, 2021 28
Slide 30: Strong liquidity
Strong liquidity Liquidity as of 31/12/2020 Bond issues per maturity 500 €2.6Bn €2.4Bn Undrawn & confirmed 1.2 €560 of new 300 300 credit lines credit lines 1.9 Cash & cash 1.2 €500m bond equivalent reimbursement 0.7 2019 2020 2021 2022 2023 2024 2025 2026 4.4 years MATURITY (vs 3.6 in 2019) NO MAJO
Slide 31: Proposed dividend: €0.49 per share
Proposed dividend: €0.49 per share Dividend evolution (in €) STRENGHTENING OF 0.74 FAMILY CONTROL 0.67 0.49 0.49 0.49 Burelle SA reinforcement from 58.78% to 59.35% 2016 2017 2018 2019 2020 through share capital reduction effective on February 25, 2021 SHAREHOLDERS’ MEETING on April 22, 2021 at 5pm
Slide 32: 2021 Outlook
2021 OUTLOOK Laurent FAVRE 2020 ANNUAL RESULTS - February 18th, 2021
Slide 33: 2021 Market outlook
2021 Market outlook Automotive production – IHS assumptions PO assumptions: in million of vehicles Sanitary situation -5% Chips shortage Technological disruptions +14% vs IHS Environmental regulations vs 2020 81.5 Trade wars Incentives 71.6 Brexit… H1 & H2 2021 below H2 2020 42.3 SIGNIFICANT DISCREP
Slide 34: 2021 Financial Guidance
2021 Financial Guidance STRONG BACK TO SUPERIOR TO GROWTH 2019 LEVELS 2019 LEVELS SALES OPERATING FREE MARGIN CASH FLOW 6% of sales >€220m 2020 ANNUAL RESULTS - February 18th, 2021 33
Slide 35: Accelerate on the Group's strategic priorities
ACCELERATE ON THE GROUP'S STRATEGIC PRIORITIES Laurent FAVRE & Félicie BURELLE 2020 ANNUAL RESULTS - February 18th, 2021
Slide 36: Market outlook
Market outlook Mix evolution 2019-2030 – PO view EV driven by Europe & China In % of worldwide automotive production ~40% 3.3 0.4 2.1 EUROPE BEV +FCEV 2.2 5.3 0.7 1.5 8.5 14.6 in 2030 6.6 27.9 97.6% 96.7% ~40% 84.3% CHINA 28.6 7.9 BEV +FCEV in 2030 91.6 86.7 27.9 68.1% ~25% ASIA 49.1 BEV +FCEV (excl
Slide 37: Market outlook
Market outlook ACCELERATION IN ELECTRIFICATION ――― Capex SLOW RECOVERY No need Content <6% of sales OF MARKET VOLUMES for further per car with stronger ――― capacity strategy focus on investments CAPACITY AVAILABLE innovation IN OUR EXISTING FOOTPRINT OF 135 PLANTS ALL OVER THE WORLD 2020 ANNUAL RESU
Slide 38: Increase the efficiency of the Group: Omega transformation plan
Increase the efficiency of the Group: Omega transformation plan INDIRECT PURCHASING COMPANY DESIGN OF CHOICE & DEVELOPMENT DIGITALIZATION CARBON-NEUTRAL STRATEGY ORGANIZATION DESIGN 7 TRANSVERSAL AXES INDUSTRY 4.0 2020 ANNUAL RESULTS - February 18th, 2021 37
Slide 39: Omega transformation plan
Increase the efficiency of the Group: Omega transformation plan Deployment of 2 first axes INDIRECT PURCHASING DESIGN & DEVELOPMENT Efficiency improvement Efficiency improvement by €100M by the end of 2022 by €100M by the end of 2022 Digitalization Robotic process automation Common tools to the 3 di
Slide 40: Successful positioning of PO on the BEV
Support the development of clean and connected mobility Successful positioning of PO on the BEV TRADITIONAL OEMs TAYCAN E-TRON EQA ID3 ID4 Lyriq Cadillac E100 by Porsche by Audi by Daimler by Volkswagen by Volkswagen by GM by SsangYong Front-end modules Front and rear bumpers, front- Rear bumpers, f
Slide 41: Strong ambitions in hydrogen
Support the development of clean and connected mobility Strong ambitions in hydrogen N°1 25% 10-15% 10% MARKET SHARE MARKET SHARE MARKET SHARE HYDROGEN MOBILITY HYDROGEN FUEL CELL INTEGRATED by 2030 VESSELS STACKS HYDROGEN by 2030 by 2030 SYSTEMS by 2030 2020 ANNUAL RESULTS - February 18th, 2021 40
Slide 42: Creating a world leader in fuel cell technology
Support the development of clean and connected mobility Creating a world leader in fuel cell technology Deals to be closed and strengthening its position in integrated systems in Q1 2021 Current production capacity of up to 10,000 UNITS per year Add a new business line to Plastic Omnium €100m offer
Slide 43: Hydrogen targets
Support the development of clean and connected mobility OUR TARGET €3 billion OPERATING MARGIN in hydrogen REVENUE TARGET Breakeven by 2030 in 2025 Accretive by 2030 €100 million ANNUAL INVESTMENT in the coming years to develop products and scale up industrial capacities 2020 ANNUAL RESULTS - Februa
Slide 44: Increase in electric vehicles penetration
Support the development of clean and connected mobility Increase in electric vehicles Group's penetration (BEV and FCEV) REVENUE REVENUE 5% in 2020 17% in 2025 2020 ANNUAL RESULTS - February 18th, 2021 43
Slide 45: Integrate more connectivity: Smart Face
Support the development of clean and connected mobility Integrate more connectivity: Smart Face 2nd Prize at CLEPA Innovation Awards for Plastic Omnium & Hella RUNNING IN THE "COOPERATION" CATEGORY, the SmartFACE offers breakthrough communication and lighting features for smart bumpers. 2020 ANNUAL
Slide 46: Extension of our modular offer
Support the development of clean and connected mobility Extension of our modular offer NEW MODULES IN PRODUCTION + Cockpit modules Active Grill Shutter + NEW E-MODULES IN DEVELOPMENT FOR BEV FRONT END MODULES Center consoles DC/DC converter modules 2020 ANNUAL RESULTS - February 18th, 2021 45
Slide 47: Accelerate our Sustainability strategy
Accelerate our Sustainability strategy ACT FOR ALL: a dedicated program to leverage our Sustainability strategy Responsible entrepreneurs Care for people Sustainable business 2020 ANNUAL RESULTS - February 18th, 2021 46
Slide 48: Responsible entrepreneurs
Accelerate our Sustainability strategy Responsible entrepreneurs WHAT WE ACHIEVED ALREADY IN 2020 WHAT WE AIM TO ACHIEVE BY 2025 Launch of ACT FOR ALL COVID 19 fund: Increased positive impact €1m / 123 initiatives supported for all stakeholders 86% employees trained 100% employees to the cod
Slide 49: Care for people
Accelerate our Sustainability strategy Care for people WHAT WE ACHIEVED ALREADY IN 2020 WHAT WE AIM TO ACHIEVE BY 2025 Safe working environment Safe working environment TF2 = 1.4 TF2 <0.5 14.7% of women in senior management A diverse organization: 18.4% of women managers 25% women among dire
Slide 50: Sustainable business
Accelerate our Sustainability strategy Sustainable business WHAT WE ACHIEVED ALREADY IN 2020 WHAT WE AIM TO ACHIEVE BY 2025 Efficiency projects to reduce energy Carbon neutrality ambition this year consumption: Top Planet index = 50% Mid-term quantitative objectives Certification by 3rd-party
Slide 51: Conclusion
CONCLUSION LONG-TERM COMMITMENT OF THE MAJORITY SHAREHOLDER ENGAGEMENT OF 31,000 EMPLOYEES WITH A STRONG INNOVATION DNA ACCELERATION OF OUR DIVERSIFIED CUSTOMERS PORTFOLIO TRANSFORMATION FOR A SUSTAINABLE SUSTAINABILITY EMBEDDED MOBILITY IN BUSINESS & PERFORMANCE STRONG FINANCIAL STRUCTURE 2020 ANNU
Slide 52: 2020 Annual Results
2020 ANNUAL RESULTS Levallois, February 18th, 2021 2020 ANNUAL RESULTS - February 18th, 2021