Opmobility · EURONEXT:OPM
Opmobility — Compagnie Plastic Omnium — H1 2018 Earnings Presentation
32 slides from Opmobility's earnings presentation, Jul 20, 2018
Slide 1: 2018 Half-Year Results
2018 HALF-YEAR RESULTS LEVALLOIS, JULY 20TH, 2018
Slide 2: H1 2018: outstanding profitability & strategic shift
H1 2018: outstanding profitability & strategic shift 2 • On-going disposal project of the Environment activity STRATEGIC SHIFT TO PREPARE THE FUTURE • Automotive pure player • Strategic developments & acquisitions • Operating margin: 10.2% (vs 9.5% proforma in H1 2017) BENCHMARK • Net result - Group
Slide 3: 2018 Half-Year Results: another record semester
2018 Half-Year Results: another record semester 3 Economic Sales : €3,821m +4.8%* Consolidated Sales : €3,190m +4.6%* Operating Margin : €324m 10.2% of sales EBITDA : €457m 14.3% of sales Net Result – Group Share : €230m 7.2% of sales Free Cash-Flow : €109m 3.4% of sales Net Debt : €992m CONFIDENTIA
Slide 4: 2018 Half-Year Strategic Highlights
2018 Half-Year Strategic Highlights
Slide 5: Our offer driven by the challenges of the car of the future
Our offer driven by the challenges of the car of the future 5 MODULAR AUTONOMOUS CLEAN CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 6: An automotive pure player
An automotive pure player 6 • On-going disposal project of the Environment division • Put option signed on July 19, 2018 with the Latour Capital / Bpifrance Consortium • To be closed by the end of 2018 >> 100% focused on expanding our automotive operations CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 7: A further step into modularization
A further step into modularization 7 • Takeover of HBPO, #1 worldwide in front-end modules • 2017: €2Bn of sales; 2021: €3Bn (+50%) • €350m of enterprise value paid for 1/3 • Plastic Omnium now owns 66.67% of HBPO >> Speed up of our development in modular products CONFIDENTIAL COMPAGNIE PLASTIC OMNI
Slide 8: Full offer of intelligent exterior systems
Full offer of intelligent exterior systems 8 Connectivity integrator • Design • Protection >> Confirm our leadership in intelligent exterior systems CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 9: Position PO as a key player in hydrogen vessels, balance of plant and fuel cell
Position PO as a key player in hydrogen vessels, 9 balance of plant and fuel cell H2 Hydrogen vessel Electric power Electric Fuel Cell Clean exhaust: H2O motor O2 Balance of plant CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 10: New Energies to boost our carbon-free offer
New Energies to boost our carbon-free offer 10 2015 2016 2017 2018 2019 Beginning Creation of 2 technological Creation of Opening of of R&D ΞPO-CellTech acquisitions "Plastic Omnium Δ-Deltatech, in fuel-cell in Israel New Energies", new advanced (fuel-cell) • Swiss Hydrogen dedicated to the research
Slide 11: A new organization to meet those challenges
A new organization to meet those challenges 11 PLASTIC OMNIUM INDUSTRIES PLASTIC OMNIUM MODULES Intelligent Exterior Systems Clean Energy Systems New Energies CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 12: 2018 Half-Year Operating Highlights
2018 Half-Year Operating Highlights
Slide 13: New contracts in innovative products
New contracts in innovative products 13 TAILGATES & SPOILERS • 2 new contracts for tailgates in Europe and in India (with integrated spoiler) • 4 new contracts for spoilers in Europe and China SMART FRONT-PANEL • 1 contract for a premium German OEM for an electric car SCR SYSTEMS • 5 new contracts i
Slide 14: H1 2018: successful launches to sustain our profitability
H1 2018: 84 successful launches to sustain our profitability 14 Americas Europe Asia 9 launches 29 launches 46 launches CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 15: Well-balanced regional footprint of 122 plants in 26 countries
Well-balanced regional footprint of 122 plants in 26 countries 15 EUROPE NORTH AMERICA 56 plants 18 plants Western Europe 38 Mexico 10 Eastern Europe 16 USA 7 Africa 2 Canada 1 ASIA 15 42 plants China 26 SOUTH AMERICA Others 16 6 plants +1 in India (Hansalpur) for Suzuki Argentina 3 Brazil 3 CONFIDE
Slide 16: 2018 Half-Year Results
2018 Half-Year Results
Slide 17: Accounting standards
Accounting standards 17 • Pursuant to IFRS 5 and taking into account the planned disposal of the Environment Division now underway, the results from this activity are presented on a special line headed "net income from discontinued operations". • The first half-year 2017 financial statements have be
Slide 18: Economic sales: +4.8% at constant change and perimeter
Economic sales: +4.8% at constant change and perimeter 18 H1 2017 ∆ in % In €m H1 2018 ∆ in % proforma lfl Economic sales 3,894.2 3,820.9 -1.9% +4.8% JVs 607.3 631.2 +3.9% +5.6% Consolidated sales 3,286.9 3,189.6 -3.0% +4.6% CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 19: Outperformance of the automotive production
Outperformance of the automotive production 19 Auto production H1 2018: 46.7 million of vehicles +1.8% H1 2017: 45.9 million of vehicles Outperformance: +3pts Plastic Omnium sales +4.8% at constant perimeter and exchange rate CONFIDENTIAL Source: IHS July 2018 COMPAGNIE PLASTIC OMNIUM
Slide 20: Growth in each region
Growth in each region 20 NORTH AMERICA EUROPE ASIA (excl. CHINA) Auto production -2.6% Auto production +2.2% Auto production +2.1% PO sales * 1.4 +1.9% PO sales * +5.1% PO sales * +2.4% Outperformance +4.5pt Outperformance +2.9pt Outperformance +0.3pt SOUTH AMERICA CHINA Auto production +9.5% Auto p
Slide 21: H1 2018 Economic sales per region
H1 2018 Economic sales per region 21 3% 8% South America Asia (excluding China) 17% Asia 9% China 55% Europe 25% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 22: H1 2018 Economic sales by OEM
H1 2018 Economic sales by OEM 22 1% 17% Others TOP 10 CUSTOMERS French 33% 1 2 PSA GM 11.5% 10.4% German 3 Ford 9.4% 4 Volkswagen 8.5% 5 Audi 6.5% 6 Jaguar Land Rover 6.3% 7 BMW 6.3% 24% 8 Renault 5.5% Asian 25% 9 Daimler 4.8% American 10 Chrysler 4.5% CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 23: H1 2018 Profit & Loss account
H1 2018 Profit & Loss account 23 In €m H1 2017 H1 2018 ∆ in % ∆ in % lfl proforma Economic sales 3,894.2 3,820.9 -1.9% +4.8% Consolidated sales 3,286.9 3,189.6 -3.0% +4.6% EBITDA 449.5 457.0 In % of sales 13.7% 14.3% Operating margin 311.8 323.8 +3.8% In % of sales 9.5% 10.2% Other operating expense
Slide 24: H1 2018 Cash-flow statement
H1 2018 Cash-flow statement 24 In €m H1 2017 H1 2018 proforma Consolidated Sales 3,286.9 3,189.6 Net Debt (beginning of the period) -811 -571 Net Operating Cash Flow +397 +422 in % of sales +12.1% +13.2% Taxes & Net Financial Interest paid -100 -82 Capex and development -204 -271 in % of sales -6.2%
Slide 25: H1 2018 Key financial metrics
H1 2018 Key financial metrics 25 EBITDA NET DEBT NET DEBT/EBITDA (in m€) (in m€) 892 992 1.1 450 457 630 571 0.7 0.6 7.3% 6.4% H1 2017 2017 H1 2018 H1 2017 2017 H1 2018 H1 2017 2017 H1 2018 SHAREHOLDER’S GEARING ROCE EQUITY (in m€) 1,761 1,853 54% 26.4% 1,575 26.7% 22.0% 40% xxx 32% 7.3% 6.4% H1 201
Slide 26: 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 27: 2018 Auto production: +2.2% = 94m of vehicles
2018 Auto production: +2.2% = 94m of vehicles 27 NORTH AMERICA: +0.8% EUROPE: +1.8% ASIA (excl. CHINA): +2.1% 24.2 24.6 22.2 22.7 15.9 16.0 2017 2018 2017 2018 2017 2018 SOUTH AMERICA: +9.8% CHINA: +2.7% 26.8 27.5 3.1 3.4 2017 2018 2017 2018 CONFIDENTIAL Source: IHS July 2018 – in million of vehicle
Slide 28: H2 2018: launches
H2 2018: 66 launches 28 Americas Europe Asia 16 launches 21 launches 29 launches CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 29: 7 plants under construction to continue to catch the growth
7 plants under construction to continue to catch the growth 29 Q3 2018 Q3 2018 Q3 2018 Q4 2018 Q2 2019 Q2 2019 Q2 2019 USA USA China India Maroc China Slovakia Greer Smyrna Shenyang Pune Kenitra Hangzhou Hlolovec 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 • 3,200 Engineers Wuhan, China 25M€ New development center • 24 R&D Centers 200 engineers for fuel systems in Asia 2019 • 3,700 patents • R&
Slide 31: 2018 Financial outlook
2018 Financial outlook 31 2018 • Increase in revenue and results • ~€600m of capex • Triple-digit free cash flow CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 32: 2018 Half-Year Results
2018 HALF-YEAR RESULTS LEVALLOIS, JULY 20TH, 2018
Compagnie Plastic Omnium — H1 2018 Earnings Presentation on 6ix