Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — H1 2021 Earnings Presentation
45 slides from Opmobility's earnings presentation, Jul 21, 2021
Slide 1: 2021 Half-Year Results
2021 HALF-YEAR RESULTS July 21st, 2021 Laurent Favre, CEO Félicie Burelle, Managing Director Adeline Mickeler, EVP Corporate Finance 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential
Slide 2: Key Messages
Key Messages Solid H1 results despite a volatile and fragmented market, impacted by chip shortages Improved operational performance and cash generation allows an upgrade of FY 2021 guidance Acceleration of Group’s transformation towards sustainable mobility led by a renewed Executive Committee 2021
Slide 3: An increasing impact of chip shortages affecting a regionalized recovery
An increasing impact of chip shortages affecting a regionalized recovery Worldwide automotive production far from its pre-crisis levels H1 2021 chip shortages impact: (in million vehicles) Q1 2021: -1.4m vehicles lost Q2 2021: -2.6m vehicles lost 46 45 43.6 42.4 42.4 44 43 42 41 40 39 -11% 37.9 Q2 p
Slide 4: Solid operating performance despite a challenging environment
Solid operating performance despite a challenging environment ANTICIPATION AND AGILITY INCREASED OPERATING MARGIN Economic sales PO assumption: Chip shortages 5% discount to 2021 Auto Production impact: -8% -12% Maximum flexibility to face 4,499 (-€550m) stops and starts in production 4,138 H2 2020
Slide 5: Reinforced Financial profile
Reinforced Financial profile Controlled Managed High investments: WCR: liquidity: €149m €2.45Bn Inventories : 3.9% of sales +€100m Installed available FCF: Net debt/ capacity supporting €151m EBITDA: further growth 4.0% of sales 0.9 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 5
Slide 6: Solid H1 results allows an upgrade of FY 2021 guidance
Solid H1 results allows an upgrade of FY 2021 guidance ACTUAL H1 2021 UPGRADED FY 2021 GUIDANCE * ECONOMIC SALES +31.9%** Strong Growth OPERATING MARGIN 6.2% > 6% of sales of sales (previously 6%) >> €220m FREE CASH-FLOW €151m (previously > €220m) (*) based on a global automotive production of 77 mi
Slide 7: Highlights H1 2021
HIGHLIGHTS H1 2021 Acceleration on our strategic priorities 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 7
Slide 8: Acceleration on our strategic priorities
Acceleration on our strategic priorities INNOVATION OPERATIONAL SUSTAINABILITY EXCELLENCE 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 8
Slide 9: First Strategic Pillar: Operational Excellence
First Strategic Pillar: Operational Excellence INNOVATION Customers Renewable energies Plants Recycled materials Omega program Carbon neutrality Hydrogen development New modules Body panel OPERATIONAL SUSTAINABILITY EXCELLENCE 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 9
Slide 10: Operational Excellence: 88 successful launches in H1 2021
Operational Excellence: 88 successful launches in H1 2021 AMERICAS EUROPE ASIA LAUNCHES 21 25 42 GM Buick Envision Plus Audi Q4 e-tron MAJOR LAUNCHES Chevrolet Equinox Chrysler Pacifica/Voyager Opel Mokka, Peugeot 308, Roewe RX5 Max, i5 VW Passat, Tiguan, Octavia PER REGION Nissan QX60/Pathfinder Se
Slide 11: Operational Excellence: Acceleration of BEV's order intake
Operational Excellence: Acceleration of BEV’s order intake Ford Volkswagen Daimler Renault 5 New EV SUV ID-buzz EV combi CLA/CLA EV Echo EV Front/Rear bumpers Display modules, Front/Rear Bumpers, Front/Rear Bumpers Rollo shutter Front-end modules Daimler 100% General Motors Audi A-Class/A-Class EV E
Slide 12: Operational Excellence: New customers gained
Operational Excellence: New customers gained BEV crossover jointly developed with GM in North America Honda Prologue, bumpers produced in Mexico VW Anhui, first dedicated NEV joint venture in China Bumpers for the first model Tavascan Geely subsidiary developing EV brand Air Grille Shutt
Slide 13: Operational Excellence: New plant in China
Operational Excellence: New plant in China 33rd plant in China New plant in LinGang, Shanghai region, for a BEV manufacturer Annual production capacity up to 1 million exterior parts and systems SOP in 2022 Sustainable plant: photovoltaics/energy storage, natural gas thermal power, wastewater treatm
Slide 14: Operational Excellence: Omega transformation plan on track
Operational Excellence: Omega transformation plan on track INDIRECT PURCHASING A team of 400 people COMPANY DESIGN 2,500 initiatives OF CHOICE & DEVELOPMENT Best cost countries sourcing, DIGITALIZATION including sustainability constraints CARBON-NEUTRAL ORGANIZATION Regional synergies STRATEGY D
Slide 15: Second Strategic Pillar: Innovation
Second Strategic Pillar: Innovation INNOVATION Customers Renewable energies Plants Recycled materials Omega program Carbon neutrality Hydrogen development New modules Body panel OPERATIONAL SUSTAINABILITY EXCELLENCE 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 15
Slide 16: Innovation: Hydrogen, a comprehensive offer for High Pressure Storage Systems
Innovation: Hydrogen, a comprehensive offer for High Pressure Storage Systems High Pressure Vessels Systems SYSTEM INTEGRATION 30% lighter than steel vessels Neck or strap mounting, valves, Hydrogen and CNG applications piping, control and diagnostic, state of health, safety management Tailored vess
Slide 17: Innovation: Hydrogen, addressing the mobility market with Fuel Cell Systems
Innovation: Hydrogen, addressing the mobility market with Fuel Cell Systems Suitable for passenger cars and LCV FCM - NM5 (up to 60 kW) Launch on Simplified system with integrated functions (DC/DC) March 1st, 2021 Robust components and stack design (Elringklinger 60%, Plastic Omnium 40%) Long servic
Slide 18: Innovation: Paving the way to €0.3bn hydrogen sales in 2025 and €3bn in 2030
Innovation: Paving the way to €0.3bn hydrogen sales in 2025 and €3bn in 2030 Technological partnership with Maximize the performance of the filling interface between H2 stations & vessels Development of joint commercial products & solutions starting from the needs analysis phase Partnership
Slide 19: Innovation: Paving the way to €0.3bn hydrogen sales in 2025 and €3bn in 2030
Innovation: Paving the way to €0.3bn hydrogen sales in 2025 and €3bn in 2030 Fuel cell stacks for GCK high power Fuel Cell system First outing in the 2023 Dakar Rally Adapted to a broad range of industrial applications High-volume series production contract for fuel cell stacks with AE Drive
Slide 20: Innovation: increase in content on electrified vehicle
Innovation: increase in content on electrified vehicle LID module A Lid (painted) B Actuator Today only existing as single components Movement delivered to OEM. C sensor (open lid) Potential to develop LED charging a module D indicator Market for LID module: Charging box PHEV and Electric E frame Ve
Slide 21: Innovation: increase in content on BEVs
Innovation: increase in content on BEVs Frunk module Torsional ring A (crash, NVH…) B Frunk tray Charging cable, C spring-driven reel Today existing as “simple“ plastic tray, potential to integrate D Charging plug multiple functions and add value Cooling box E or refrigerator Fixation of cooling F f
Slide 22: Innovation: increase in content on connected cars
Innovation: increase in content on connected cars Body panel functionalized with 4D imaging radar Body panel functionalization Use of bumper’s surface as a giant radar Co-design body panel / sensor for enhanced aperture for enhanced performances performances (resolution, field of view, wave transpar
Slide 23: Third Strategic Pillar: Sustainable Business
Third Strategic Pillar: Sustainable Business INNOVATION Renewable energies Customers Plants Recycled materials Omega program Carbon neutrality Hydrogen development New modules Body panel OPERATIONAL SUSTAINABILITY EXCELLENCE 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 23
Slide 24: Sustainable Business: ratings
Sustainable Business: ratings Plastic Omnium’s current rating CDP rating implementation. Results by year-end Supporter of TCFD, to work towards creating a more resilient financial system & safe guarding against climate risk through better disclosures 2021 HALF YEAR RESULTS - July 21st, 2021 Co
Slide 25: Sustainable Business: H1 initiatives
Sustainable Business : H1 initiatives Renewable energies: 4 facilities equipped with solar panels in 2020 17 additional sites currently being equipped 32% renewable electricity in 2020 Recycled material: Development of a bumper demonstrator with 50% of recycled material Evaluation of more
Slide 26: The next key milestone: carbon neutrality by 2050
The next key milestone: carbon neutrality by 2050 The Group will provide details about its carbon neutrality ambition in H2 2021. It is already committed to SBTi Business Ambition for 1.5°C. lt will announce medium-term targets on Scopes 1, 2 and 3 approved by the SBTi. By then, we will have: Audite
Slide 27: H1 2021 Financial Results
H1 2021 Financial Results 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 27
Slide 28: H1 Sales per business
H1 Sales per business ∆ ∆ In €m H1 2020 H1 2021 Outperformance in % LFL PO Industries 2,395 2,992 +24.9% +29.2% -0.2pt PO Modules 838 1,146 +36.7% +39,5% +10.1pts Economic sales 3,233 4,138 +28.0% +31.9% +2.5pts Joint Ventures 271 354 +30.4% +32.9% - Consolidated sales 2,962 3,784 +27.8% +31.8% +2.4
Slide 29: 2.5 points outperformance driven by Asia
2.5 points outperformance driven by Asia NORTH AMERICA EUROPE CHINA ASIA (excl. CHINA) AUTO PRODUCTION +31.4% +27.8% +26.6% +29.5% PO ECONOMIC SALES +31.1% +28.9% +33.8% +36.7% OUTPERFORMANCE -0.3pt +1.1pt +7.2pts +7.2pts * Plastic Omnium economic sales like-for-like variation Source: IHS July 2021
Slide 30: H1 2021 Economic sales per region
H1 2021 Economic sales per region ASIA 17% ASIA CHINA Excluding China 10% 7% OTHERS 3% EUROPE 55% NORTH AMERICA 25% 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 30
Slide 31: H1 2021 Economic sales per customer
H1 2021 Economic sales per customer Volkswagen Group 27% 1 ow Audi 10% ow Volkswagen 8% ow Porsche 4% Stellantis 16% 2 ow PSA 10% ow Chrysler 5% 3 Daimler 11% 4 BMW 9% 5 General Motors 7% Renault Nissan Mitsubishi 6% 6 ow Renault 5% 7 Jaguar Land Rover - Tata 5% 8 Ford 5% 9 Hyundai 4% 10 Others 10%
Slide 32: H1 2021 Profitability per business
H1 2021 Profitability per business In €m H1 2020 H2 2020 H1 2021 Consolidated sales 2,962 4,111 3,784 PO Industries 2,203 2,940 2,739 PO Modules 759 1,171 1,045 Operating Result -116 234 234 In % of sales -3.9% 5.7% 6.2% PO Industries -106 205 209 In % of sales -4.8% 7.0% 7.6% PO Modules -11 29 25 I
Slide 33: H1 2021 Profit & Loss account
H1 2021 Profit & Loss account In €m H1 2020 H1 2021 Economic sales 3,233 4,138 Consolidated sales 2,962 3,784 EBITDA 171 461 In % of sales 5.8% 12.2% Operating result -116 234 In % of sales -3.9% 6.2% Other operating expenses -313 -21 In % of sales -10.6% -0.6% Financial expenses -35 -26 In % of sal
Slide 34: H1 2021 Cash-flow statement
H1 2021 Cash-flow statement In €m H1 2020 H2 2020 H1 2021 Operating margin -116 234 234 EBITDA 171 477 461 Net operating Cash-Flow 69 384 409 In % of sales 2.3% 9.3% 10.8% Capex and development -226 -148 -149 In % of sales -7.6% -3.6% -3.9% Change in WCR -415 +370 -108 ow factoring -95 +115 -20 Free
Slide 35: H1 2021 Key financial metrics
H1 2021 Key financial metrics NET DEBT (in m€) NET DEBT/EBITDA 1,410 2.1 890 1.2 807 0.9 H1 2020 2020 H1 2021 H1 2020 2020 H1 2021 SHAREHOLDERS’ EQUITY (in m€) GEARING 2,041 78% 1,805 1,950 41% 44% H1 2020 2020 H1 2021 H1 2020 2020 H1 2021 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 35
Slide 36: Outlook
OUTLOOK 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 36
Slide 37: In Covid aftermath, acceleration of electrification
In Covid aftermath, acceleration of electrification DRIVERS Share of connected vehicles will exceed 90% by 2035 Connected Increase in functionalities with car value shift from hardware to software Autonomous Level 1 to 3 will represent 80% of vehicle mix in 2030 Safety regulations will accel
Slide 38: Plastic Omnium's vision on powertrain mix evolution
Plastic Omnium’s vision on powertrain mix evolution Mix evolution 2019-2030 – PO view EV driven by Europe & China (In % of worldwide automotive production) ~40% 3 5 2 EUROPE BEV+FCEV 2 2 15 9 97% 11 95% 15% 30% in 2030 7 28 85% ~40% 29 8 CHINA BEV+FCEV 70% in 2030 87 28 82 ~25% 49 ASIA BEV+FCEV 32 (
Slide 39: Electrification: a growth driver for PO's businesses
Electrification: a growth driver for PO’s businesses OUR INNOVATIVE SOLUTIONS FOR SUSTAINABLE MOBILITY Intelligence Exterior Systems New Energies & Modules A comprehensive & industrialised Lightweighting H2 offer with: Aerodynamism H2 storage Function integration Fuel cell Safety Integ
Slide 40: Electrification: managing Clean Energy Systems business
Electrification: managing Clean Energy Systems business 85% of worldwide automotive production equipped with a tank in 2025 Conventional plastic tank CES business will grow in the coming years Continuous decline of current 12% share of steel tank Well-balanced sales per region Increase of PO’s
Slide 41: Assumptions for H2 2021 automotive production
Assumptions for H2 2021 automotive production Automotive production (in million vehicles) 50 Chip shortages: 41 40 38 39 Q3 and Q4 still affected 30 Flex maintained at the highest 20 level possible H1 2021 IHS Forecast PO's management assumption Raw materials increase H2 2021 Source: IHS July
Slide 42: Growth vs H1 2021 sustained by 86 launches in H2 2021
Growth vs H1 2021 sustained by 86 launches in H2 2021 AMERICAS EUROPE ASIA LAUNCHES 15 23 48 Ford Maverick Land Rover Range Rover BMW Brillance X3 MAJOR LAUNCHES Jeep Grand Cherokee Renault Megane, Kadjar MG ZL VW Tiguan Skoda Karoq, Seat Ibiza VW NEO, Lamando PER REGION BMW IX GM Buick Verano Pro 2
Slide 43: FY 2021 Financial Guidance upgraded
FY 2021 Financial Guidance upgraded SALES OPERATING FREE MARGIN CASH-FLOW Strong > 6% of sales >> €220m growth 2021 HALF YEAR RESULTS - July 21st, 2021 Confidential 43
Slide 44: Conclusion
Conclusion LEADING MARKET POSITIONS: #1 IN PLASTIC BODY PARTS, IN FUEL SYSTEMS AND IN MODULES DIVERSIFIED PORTFOLIO OF CUSTOMERS & GEOGRAPHIES ACCELERATION OF OUR WELL POSITIONED TO BENEFIT FROM ELECTRIFICATION, CONNECTIVITY AND TRANSFORMATION AUTONOMOUS DRIVING TRENDS FOR SUSTAINABLE COMPEHENSIVE H
Slide 45: www.plasticomnium.com
www.plasticomnium.com PLASTIC OMNIUM