Opmobility · EURONEXT:OPM
Opmobility — Compagnie Plastic Omnium — FY2016 Earnings Presentation
40 slides from Opmobility's earnings presentation, Feb 23, 2017
Slide 1: 2016 Annual Results
2016 Annual Results February 23rd, 2017
Slide 2: 2016 Annual Results presenters
2016 Annual Results Laurent Burelle, Chairman & CEO Paul-Henry Lemarié, Director & COO Jean-Michel Szczerba, Director & Co-CEO Levallois, February 23rd, 2017
Slide 3: A great year
A great year 3 • Outperfomance of the auto production: +8pts • Record financial results • The biggest acquisition • Focus on core businesses • A strong order intake • An optimized footprint CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 4: An exciting future
An exciting future 4 • 2020 Economic sales: €9.5bn • A robust self-financed investment program: €2.5bn for 2016-2020 • A technology-driven company preparing the future CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 5: 2016 Highlights
2016 Highlights
Slide 6: A significant outperformance of the automotive production
A significant outperformance of the automotive production 6 Finance Auto production 2015: 86.0 million of vehicles +4.8% 2016: 90.1 million of vehicles Outperformance: +8 pts Plastic Omnium Auto sales* at constant perimeter & exchange rate +12.8% CONFIDENTIAL Source: IHS February 2017 COMPAGNIE PLAS
Slide 7: Results: a record year
2016 Results: a record year 7 Finance Economic sales : €6,936m +16% Consolidated sales : €5,857m +17% Operating margin : 9.5% of sales +19% EBITDA : 13.8% of sales +17% Net profit, group share : €312m +21% Free Cash Flow : €241m +19% Net debt : €800m +€532m CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 8: A structuring acquisition: Faurecia Auto Exterior
A structuring acquisition: Faurecia Auto Exterior 8 M&A July 2016: acquisition of €1.9bn in sales of Faurecia Auto Exterior business, for an enterprise value of €665m • €0.7bn of sales to be disposed following the European Commission decision (2016 EBITDA proforma : €50m) • €0.2bn of immediate portf
Slide 9: Permanent portfolio focusing and non-strategic assets cleaning
Permanent portfolio focusing and non-strategic assets cleaning 9 M&A Automotive Division Environment Division • Truck business • Signature Limited (UK subsidiary, specialized in (closing expected highway signage) sold in August 2016 in 1st semester 2017) • A playground manufacturing plant in Montaub
Slide 10: Seizing the growth and optimizing the footprint
Seizing the growth and optimizing the footprint 10 Industry NORTH AMERICA EUROPE & ASIA 18 Plants +2 acquisitions AFRICA 39 Plants -2 portfolio cleanings of which -1 plant closure 65 Plants 26 in China +2 new plants +10 acquisitions +1 new plant -1 plant closure +1 new plant -5 non strategic disposa
Slide 11: Record number of car model launches
Record number of car model launches 11 Commercial North/South America Europe Asia 28 launches 57 launches 75 launches 160 successful launches in 2016 with 33 in innovative products CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 12: Significant orders in 2016
Significant orders in 2016 12 Growth driver 490,000 SCR systems per year First contract with NextEv in China for electric cars (bumpers, fenders, tailgate & spoiler) Contract with Lucid for electric cars (bumpers, tailgate & body panels) Fuel systems for plug-in hybrid vehicles : orders for 8 models
Slide 13: A global player working with 70 customers worldwide
A global player working with 70 customers worldwide 13 Commercial CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 14: Strengthening of family control and robust financial structure
Strengthening of family control and robust financial structure 14 Corporate Plastic Omnium capital structure Liquidity as per 31/12/2016 Free Float Burelle SA 39.22% 57.01% Undrawn confirmed lines of credit: €1.2bn Cash available: €0.3bn Employees Total €1.5bn 1.00% Treasury shares 2.77% Buy-back
Slide 15: 2016 Results
2016 Results
Slide 16: Another record year
Another record year 16 ECONOMIC SALES CONSOLIDATED SALES (in €bn) +15.9% +12.1% (in €bn) +16.9% +11.6% 6.9 5.9 6.0 at constant perimeter at constant perimeter 5.0 & exchange rate & exchange rate 2015 2016 2015 2016 OPERATING MARGIN NET PROFIT, GROUP SHARE (in €m and (in €m and % of consolidated sale
Slide 17: Another record year
Another record year 17 CAPEX EBITDA (in €m and (in €m and % of consolidated sales) +24.6% % of consolidated sales) +17.2% 402 810 323 691 6.4% 6.9% 13.8% 13.8% 2015 2016 2015 2016 FREE CASH FLOW NET DEBT (in €m and (in €m) % of consolidated sales) +19.2% +€532m 800 241 202 including the acquisition
Slide 18: 2016 Sales by business
2016 Sales by business 18 ∆ ∆ at constant In €m 2015 % sales 2016 % sales perimeter & in % exchange rate Automotive 5,596.7 94% 6,566.8 95% +17.3% +12.8% Environment 385.8 6% 368.9 5% -4.4% +0.9% Economic sales 5,982.5 100% 6,935.7 100% +15.9% +12.1% Joint-ventures 972.6 1,078,5 +10.9% +14.8% Consol
Slide 19: 2016 Performance per region vs auto production
2016 Performance per region vs auto production 19 NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) Auto production +1.6% Auto production +3.8% Auto production +0.2% 2.4 PO sales * +7.7% PO sales * +10.9% PO sales * +14.6% 1.4 Outperformance +6.1pt Outperformance +7.1pt Outperformance +14.4pt SOUTH A
Slide 20: 2016 Economic estimated proforma sales per region
2016 Economic estimated proforma sales per region 20 7.5% 8.5% China Asia (excluding China) 3% South America 57% Europe & Africa 24% North America CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 21: Auto economic estimated proforma sales by customer
2016 Auto economic estimated proforma sales by customer 21 16% 3% 37% Others German French VW: 12% PSA: 10% BMW: 8% Renault: 6% Audi: 6% Daimler: 5% Porsche: 2% Opel: 2% Skoda: 1% 18% Seat: 1% Asian JLR-Tata: HMC: 6% 4% 26% Nissan: 3% American Toyota: 1% Volvo-Geely: 1% GM: 12% Suzuki-Maruti: 1% For
Slide 22: 2016 Profitability by division
2016 Profitability by division 22 ∆ ∆ at constant In €m 2015 % sales 2016 % sales perimeter & in % exchange rate Consolidated sales 5,009.9 100% 5,857.3 100% +16.9% +11.6% Automotive 4,624.1 92% 5,488.3 94% +18.7% +12.4% Environment 385.8 8% 368.9 6% -4.4% +0.9% EBITDA 691.1 13.8% 810.0 13.8% +17.2%
Slide 23: Focus on operating margin
Focus on operating margin 23 Record operating margin of 10.1% (in €m and % of consolidated sales) reached in H1 2016 Integration of Faurecia Auto Exterior: dilutive 558 582 impact on margins 470 267 291 10.1% 9.4% 9.5% 9.1% 9.0% 2015 H1 2016 H2 2016 2016 Proforma 2016 CONFIDENTIAL COMPAGNIE PLASTIC
Slide 24: Focus on operating margin: Faurecia Auto Exterior turnaround
Focus on operating margin 24 Objective: turnaround the Faurecia Auto Exterior business (integrated as of August 1st, 2016) OPERATING MARGIN WHAT HAS BEEN ALREADY ACHIEVED WHAT WILL BE IMPLEMENTED Merge of the 2 organizations completed Implementation of Plastic Omnium’s manufacturing system Pro
Slide 25: 2016 Profit & Loss account
2016 Profit & Loss account 25 In €m 2015 2016 ∆ in % Consolidated sales 5,009.9 5,857.3 +16.9% Operating margin 469.7 557.8 +18.7% In % of sales 9.4% 9.5% Non recurring expenses -75.5 -85.3 Financial expenses -56.2 -67.9 In % of sales -1.1% -1.2% Income Tax -75.2 -86.3 Net Result 262.8 318.3 +21.1%
Slide 26: 2016 Cash Flow statement
2016 Cash Flow statement 26 In €m 2015 2016 Sales 5,010 5,857 Net Debt (beginning of the period) -390 -268 Net Operating Cash Flow 606 733 in % of sales 12.1% 12.5% Taxes & Net Financial Interest paid -115 -150 Capex and R&D capitalized -323 -402 in % of sales 6.4% 6.9% Change in WCR +34 +60 Free Ca
Slide 27: 2016 Key financial metrics
2016 Key financial metrics 27 NET DEBT/EBITDA ROCE 1.0 29.9% 24.1% 0.4 2015 2016 2015 2016 SHAREHOLDER’S GEARING EQUITY (in m€) 53% 1,516 1,301 21% 7.3% 6.4% 2015 2016 2015 2016 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 28: 2016 Extra financial performance
2016 Extra financial performance 28 Safety First Responsible employer • 4,143 recruitments in 2016 Tf2 -24% • 25 hours of training by employee 3.91 in the year 2.97 • Certified ISO 14001 sites: 108 2015 2016 • Certified OHSAS 18001 sites: 92 Frequency rate = number of accidents with and without lost
Slide 29: 2017-2020 Outlook
2017-2020 Outlook CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 30: 2017 auto production: +1.8% vs 2016
2017 auto production: +1.8% vs 2016 30 NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) xx% In million -1.8% +1.5% 23.3 23.7 +2.7% 22.0 16.7 16.4 21.5 du CA 2016 2017 2016 2017 2016 2017 SOUTH AMERICA CHINA WW Auto Production +3.0% 26.0 26.8 2016: 90.1 million of vehicles +9.4% 2017: 91.8 million of
Slide 31: 2020 auto production: +9.3% vs 2016
2016-2020 auto production: +9.3% 31 NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) xx% In million +6.1% +7.4% +8.3% 23.2 25.1 21.5 du CA 16.7 17.7 23.3 2016 2020 2016 2020 2016 2020 SOUTH AMERICA CHINA +13.2% 29.5 WW Auto Production 26.0 2016: 90.1 million of vehicles 2020: 98.5 million of vehicle
Slide 32: Strong order intake to improve our visibility
Strong order intake to improve our visibility 32 Growth driver Order book 10% 20% 90% 100% 97% 90% 70% 2017 2018 2019 2020 NON BOOKED NEW REPLACEMENT TO BOOK BOOKED CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 33: Gain in market shares
Gain in market shares 33 Growth driver 2016 2020 Bumpers 15% 19% Plastic Tailgates 40% 45% Fuel systems 21% 25% SCR systems 17% 26% CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 34: New capacities in growing markets
New capacities in growing markets 34 Growth driver 5 plants under construction 2017 2018 Mexico, China, India, USA USA San Luis Potosi Chongqing Hansalpur Tennessee Greer Bumpers Fuel systems Fuel systems Fuel systems Bumpers Japanese OEM CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 35: Ready for the future
Ready for the future 35 Growth driver intelligent light PO-CELLTECH fuel cell aerodynamic CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 36: 2017 Financial Outlook
2017: another year of growth & profitability 36 2017 Financial Outlook Strong growth thanks to the full-year integration of the new perimeter of activity and a recurring outperformance of the automotive production. The Group will continue to grow in all geographical areas Plastic Omnium will pur
Slide 37: 2020: aiming high in terms of growth
2020: aiming high in terms of growth 37 CONSOLIDATED & ECONOMIC SALES €9.5bn 2015-2020: €7.5bn €8bn +60%* €6bn €6.4bn €5bn Consolidated sales The Group will continue its self-financed Economic sales €2.5bn investment program over the 2016-2020 period 2015 2016 proforma 2020 CONFIDENTIAL * After disp
Slide 38: Dividend of €0.49 per share
Dividend 38 Proposed dividend of €0.49 per share Payout: 24% (+20%) • Agenda • Shareholders’meeting on April 27th, 2017 at 5pm (Pavillon Gabriel - Paris) • Payable on May 5th, 2017 CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 39: Glossary
Glossary 39 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 40: 2016 Annual Results
2016 Annual Results February 23rd, 2017
Compagnie Plastic Omnium — FY2016 Earnings Presentation on 6ix