Opmobility · EURONEXT:OPM
Opmobility — Compagnie Plastic Omnium — H1 2017 Earnings Presentation
39 slides from Opmobility's earnings presentation, Jul 21, 2017
Slide 1: 2017 Half-Year Results
2017 HALF-YEAR RESULTS LEVALLOIS, JULY 21TH, 2017
Slide 2: A strong semester
A strong semester 2 • Outperformance of the auto production: +10pts • Double digit increase of all P&L aggregates • Rationalization of the acquired exterior business on track • Continuous improvement of the industrial performance • Portfolio optimization • Liquidity increase with significant debt re
Slide 3: Preparing the future
Preparing the future 3 • €2.5 billion self-financed investment program (2017-2021) • Ambitious 4.0 Industry program • Additional milestones in the innovation pathway CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 4: H1 2017 Highlights
H1 2017 Highlights
Slide 5: A significant outperformance of the automotive production
A significant outperformance of the automotive production 5 Auto production H1 2017: 45.8 million of vehicles +2.8% H1 2016: 44.6 million of vehicles Outperformance: +10pts Plastic Omnium Auto sales +12.6% at constant perimeter and exchange rates CONFIDENTIAL Source: IHS July 2017 COMPAGNIE PLASTIC
Slide 6: H1 2017 Results: double digit growth in all P&L aggregates
H1 2017 Results: double digit growth in all P&L aggregates 6 Economic sales : €4,062m +28% Consolidated sales : €3,455m +30% Operating margin : €325m +22% 9.4% of sales EBITDA : €469m +22% 13.6% of sales Net profit, group share : €210m +35% Free Cash Flow : €101m +10% Net debt : €622m - €178m CONFID
Slide 7: Integration of the exterior business acquired in 2016
Integration of the exterior business acquired in 2016 7 Already achieved Merge of the 2 organizations completed Program portfolio restructuring o Rationalization to be continued in H2 3 plant closures in the Americas: (2 USA, 1 Brazil) o €200m investment program 2 paint line closures in Germ
Slide 8: Business disposals
Business disposals 8 Following European Commission decision Non strategic assets disposal • As part of the takeover of exterior • Truck composites business with sales business acquired in July 2016 of €200m and 1,500 people • Sale of 7 European sites • 9 production sites (4 in France, 2 in Germany,
Slide 9: New capacities to seize the growth
New capacities to seize the growth 9 2 new plants invested 1 plant acquired SOP April 2017 SOP 2018 May 2017 Acquisition of 50% of a JV with a local partner Mexico, China, China, San Luis Potosi Chongqing Changchun Bumpers Fuel systems Bumpers CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 10: Well-balanced local footprint
Well-balanced local footprint 10 NORTH AMERICA EUROPE & 19 Plants USA 7 ASIA Mexico 11 AFRICA 39 Plants Canada 1 60 Plants Of which Western Europe 43 China 26 Eastern Europe 15 South Korea 6 Africa 2 India 3 Japan 1 SOUTH AMERICA 6 Plants Argentina 3 124 plants in 31 countries Brazil 3 74 auto c
Slide 11: New clients
Reinforcement and diversification of the orderbook 11 o New clients Increased penetration with Exterior parts newcomers in EV 3 pure EV customers in total Exterior parts Increased penetration with pure Chinese OEMs Fuel systems 20 Chinese customers in total Benefiting from the strong Fuel systems re
Slide 12: New plants for new contracts
Reinforcement and diversification of the orderbook 12 o New plants for new contracts Kenitra (Morocco) : New contract for PSA’s new plant SOP 2019. Full year sales : €50m Hlolovec (Slovakia): New contract for JLR’s Nitra new plant SOP 2019. Full year sales : €170m CONFIDENTIAL COMPAGNIE PLASTIC OMNI
Slide 13: New product lines
Reinforcement and diversification of the orderbook 13 o New product lines • Tailgates : • 5 additional OEMs in the portfolio : American OEM, SGM, Dongfeng, Lucid, Next EV • 14 programs in development, 50% in China • 35 programs in production in 2020 • Pressurized tanks for EV (Plug in Hybrid) • Anot
Slide 14: What about SCR?
What about SCR ? 14 • Plastic Omnium will outperform the SCR market growth • Market shares gain : • 6 OEMs in the portfolio in 2017 16% worldwide market share • 16 OEMs in the portfolio in 2021 24% worldwide market share ˜ • Est. 2017 ˜ €400m in sales, +30% vs 2016 • Est. 2021 €600m in sales CONFIDE
Slide 15: Burelle SA's control strengthened
Burelle SA’s control strenghtened 15 Plastic Omnium capital structure •H1 2017 Shares Buy-back : 1.38m of shares for €46.5m •Share capital reduction of €1.5m of shares (1% of share capital) on August 14, 2017 As of June 30, 2017 As of August 14, 2017 Free Float Burelle SA Free Float Burelle SA 38.59
Slide 16: 2017 Half-Year Results
2017 Half-Year Results
Slide 17: H1 2017 sales by business
H1 2017 sales by business 17 ∆ ∆ at constant In €m H1 2016 % sales H1 2017 % sales perimeter & in % exchange rate Automotive 2,992.8 94% 3,894.2 96% +30.1% +12.6% Environment 186.7 6% 168.0 4% -10.0% +7.4% Economic sales 3,179.5 100% 4,062.2 100% +27.8% +12.3% Consolidated sales 2,660.0 100% 3,454.9
Slide 18: H1 2017: successful launches
H1 2017: 70 successful launches 18 North/South America Europe Asia 14 launches 25 launches 31 launches CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 19: H1 2017 performance per region vs auto production
H1 2017 performance per region vs auto production 19 NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) Auto production -1.0% Auto production +2.0% Auto production +4.2% 2.4 PO sales * +22.5% PO sales * +3.5% PO sales * +15.8% 1.4 Outperformance +23.5pt Outperformance +1.5pt Outperformance +11.6pt SOU
Slide 20: H1 2017 economic sales per region
H1 2017 economic sales per region 20 8% 8% China Asia (excluding China) 3% South America 55% Europe & Africa 26% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 21: H1 2017 Auto economic sales by customer
H1 2017 Auto economic sales by customer 21 16% 3% 36% Others German French VW: 11% PSA: 10% BMW: 8% Renault: 6% Daimler: 5% Audi: 5% Porsche: 2% Opel: 2% Seat: 2% 18% Skoda: 1% Asian JLR-Tata: 6% HMC: 4% 27% Nissan: 2% American Toyota: 2% Volvo-Geely: 1% GM: 12% Suzuki-Maruti : 1% Ford: 10% Others:
Slide 22: H1 2017 Profitability by division
H1 2017 Profitability by division 22 ∆ In €m H1 2016 % sales H1 2017 % sales in % Consolidated sales 2,660.0 100% 3,454.9 100% +29.9% Automotive 2,473.4 93% 3,286.9 95% +32.9% Environment 186.7 7% 168.0 5% -10.0% EBITDA 383.3 14.4% 468.6 13.6% +22.2% Automotive 363.8 14.7% 452.1 13.8% +24.3% Environ
Slide 23: Focus on operating margin
Focus on operating margin 23 31 July 2016 Acquisition of Faurecia (in €m and % of consolidated sales) Auto Exterior Business 325 297 9.4% 300 285 267 9.0% 8.9% 10.1% 9.1% 200 H1 2016 published H1 2016 proforma H2 2016 proforma H1 2017 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 24: H1 2017 Profit & Loss account
H1 2017 Profit & Loss account 24 In €m H1 2016 H1 2017 ∆ in % Consolidated sales 2,660.0 3,454.9 +29.9% Operating margin 267.4 325.0 +21.5% In % of sales 10.1% 9.4% Other operating expenses -33.2 -23.5 Financial expenses -31.4 -31.8 In % of sales -1.2% -0.9% Income Tax -44.3 -56.6 Net Result 158.4 2
Slide 25: H1 2017 Cash Flow statement
H1 2017 Cash Flow statement 25 In €m H1 2016 H1 2017 Sales 2,660 3,455 Net Debt (beginning of the period) -268 -800 Net Operating Cash Flow +347 +415 in % of sales 13.1% 12.0% Taxes & Net Financial Interest paid -77 -102 Capex and R&D capitalized -174 -207 in % of sales 6.5% 6.0% Change in WCR -5 -5
Slide 26: H1 2017 key financial metrics
H1 2017 key financial metrics 26 EBITDA NET DEBT NET DEBT/EBITDA (in m€) (in m€) 810 800 622 1.0 469 0.7 383 263 0.4 7.3% 6.4% H1 2016 2016 H1 2017 H1 2016 2016 H1 2017 H1 2016 2016 H1 2017 SHAREHOLDER’S GEARING ROCE EQUITY (in m€) 1,575 53% 1,516 31.1% 28% 1,345 39% 24.1% xxx 20% 7.3% 6.4% H1 2016
Slide 27: H1 2017 Extra financial performance
H1 2017 Extra financial performance 27 NET DEBT 31,900 employees worldwide • 573 Managers & Engineers recruited in H1 2017 France Asia 15% 22% • Benchmark Injury Frequency Rate (IFR2) of 2.80 • Divided by 3 in 5 years South America 5% • Corporate Social Responsibility: • Plastic Omnium part of Top 6
Slide 28: Compagnie Plastic Omnium
CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 29: H2 2017 Auto production
H2 2017 Auto production: ˜ +1% FY 2017 : +1.5% to +2% 29 NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) +5.0% +2.7% -4.1% 10.8 11.1 8.3 7.9 11.0 11.5 H2 2016 H2 2017 H2 2016 H2 2017 H2 2016 H2 2017 SOUTH AMERICA CHINA -0.6% 14.1 14.0 +12.0% 1.3 1.5 H2 2016 H2 2017 H2 2016 H2 2017 CONFIDENTIAL Sour
Slide 30: H2 2017: new launches
H2 2017 : 63 new launches 30 North/South America Europe/Africa Asia 11 launches 27 launches 25 launches CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 31: Good positioning on SUV segment
Good positioning on SUV segment 31 World Automotive production segment mix +1.7m 90.2 91.9 Pick-up, Van 14% 13% MPV 7% 7% PO auto sales +2.9m SUV 30% 33% • 40% exposure to SUV • Content per car on SUV: >> compared to Sedan car Car 49% 47% 2016 2017 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 32: 2017-2021: 2.5 Bn investment program, new capacities
2017-2021 : 2.5 Bn investment program, new capacities 32 6 new plants 2018 2019 USA USA India, India, Morroco, Slovakia, Greer Smyrna Hansalpur Pune Kenitra Hlolovec Bumpers Fuel systems Fuel systems Bumpers Bumpers Bumpers 1st 4.0 plant CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 33: Focus on 4.0 Industry
Focus on 4.0 Industry 33 Decrease Maximize use Answer growing Production costs of our Capex complexity • Reduce CNQ & Scraps • Mass customization • Reduce inventories • Increase OEE Challenges • Energy saving • Maximize paint capacity more variants & models • New products • Manpower optimization • P
Slide 34: Reinforcing R&D to sustain growth
Reinforcing R&D to sustain growth 34 R&D at Plastic Omnium : • 3,500 Engineers • 23 R&D Centers • 4,000 patents 141 filed in 2016 • 6% of sales spent yearly €500m in 2017 • €50m investment in Δ-Deltatech (2019), R&D center on new energies CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 35: Innovation: Openlab
Innovation : Openlab 35 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 36: FY 2017 and 2021 Guidance
FY 2017 and 2021 Guidance 36 2017 ► Outperformance of the auto production ► Sales ≥ €8 Bn ► Strong increase in financial results ► Further improvement of the financial structure CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 37: FY 2017 and 2021 Guidance
FY 2017 and 2021 Guidance 37 2017 - 2021 • €2.5 Bn investment program to reach Sales > €10 Bn by 2021 • Profitability improvement • Significant free cash flow generation CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 38: Glossary
Glossary 38 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
Slide 39: Contact: www.plasticomnium.com
Contact: www.plasticomnium.com
Compagnie Plastic Omnium — H1 2017 Earnings Presentation on 6ix