Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — FY2019 Earnings Presentation
48 slides from Opmobility's earnings presentation, Feb 19, 2020
Slide 1: 2019 Results
2019 RESULTS LEVALLOIS, FEBRUARY 19TH, 2020
Slide 2: Introduction
INTRODUCTION LAURENT BURELLE COMPAGNIE PLASTIC OMNIUM CONFIDENTIAL COMPAGNIE PLASTIC OMNIUM
Slide 3: Plastic Omnium, a pure automotive player with a long term growth story
Plastic Omnium, a pure automotive player with a long term growth story €9.2Bn INTELLIGENT EXTERIOR €1.6Bn SYSTEMS ECONOMIC EXTERIOR PARTS SALES FUEL SYSTEMS X 5.8 PURE 50% CLEAN ENERGY AUTOMOTIVE 7 BUSINESSES ENVIRONMENT SYSTEMS PLAYER TRUCKS SIGNATURE MODULES MEDICAL 3P 2001 2019 2019 RESULTS Febru
Slide 4: A real estate transaction ending PO scope rationalization
A real estate transaction ending PO scope rationalization Sale of PO’s non-industrial real estate assets to the real estate company Sofiparc, wholly-owned by Burelle SA Disposal completed in December 2019 for an amount of €128.5 million based on 2 independent valuations SELL for €128.5m to PLASTIC O
Slide 5: Reinforced independence & sound financial structure
Reinforced independence & sound financial structure Burelle Family SOLID FINANCIAL RATIOS & STRONG LIQUIDITY (as of 31/12/2019) 85.4 % % of interest 50.17% Net debt/EBITDA: Gearing: 58.78 % 0.7 32% Burelle SA: family control increased Undrawn confirmed Cash from 58% in 2001 to 85.4% in 2019 credit l
Slide 6: A new management team to pursue our growth strategy
A new management team to pursue our growth strategy Chairman CEO Managing Director 48 years 40 years 23-year experience 10-year experience with PO with leading auto German suppliers 2019 RESULTS February 19th, 2020 6
Slide 7: 2019 Highlights
Date 7 2019 Highlights LAURENT FAVRE
Slide 8: Leadership positions with complementary profiles
3 leadership positions with complementary profiles PLASTIC OMNIUM INDUSTRIES PLASTIC OMNIUM MODULES INTELLIGENT EXTERIOR CLEAN ENERGY SYSTEMS SYSTEMS #1 WORLDWIDE #1 WORLDWIDE #1 WORLDWIDE 16% Market Shares (Bumpers) 22% Market Shares (FS*) 18% Market Shares (FEM**) Economic Sales €6.9Bn Economic Sa
Slide 9: 2019 Results
2019 Results Economic Sales Consolidated Sales EBITDA Operating Result €9,183m €8,494m €1,005m €511m +11.4% +17.2% +9.5% 6.0% of sales +1.1% LFL +1.4% LFL 11.8% of sales Net Result (group share) Free Cash-Flow Net Debt €258m €347m €739m* 3.0% of sales 4.1% of sales Debt net/EBITDA 0.7 Gearing 32% *€
Slide 10: Managing a difficult market
Managing a difficult market Worldwide automotive production Between 2017 and 2019: (in million of vehicles) -6.2m of vehicles CHINA -1.0% -2% -3.3m -5.8% 92.2m EUROPE 91.2m -1.3m 86.0m GERMANY o.w. -1.0m 91.3 ~86 ~84 NORTH AMERICA -0.8 m OTHERS 2017 2018 2019 -0.8m 2019 RESULTS February 19th, 2020 1
Slide 11: Cost reduction programs to face uncertainty
Cost reduction programs to face uncertainty 2019 IMPACT VARIABLE Plant flex : direct headcount & temps ↓ -€50m COST Strict control of production cost FIXED Headcount reductions : indirect & structure -€50m COST Strong effort in R&D maintained -€100m 2019 RESULTS February 19th, 2020 11
Slide 12: A detailed action plan to manage our Greer issues
A detailed action plan to manage our Greer issues STEP 1 STEP 2 STEP 3 Stabilization of industrial Production cost optimization Optimization of the performance and with reinforcement of local industrial loading 4.0 processes to deliver management and a dedicated in South Carolina the customer PO tas
Slide 13: Benefiting from new capacities to fuel the growth
Benefiting from new capacities to fuel the growth Kenitra, Morocco Bhamboli, India Hlohovec, Slovakia IES IES IES 6 NEW PLANTS OPENED IN 2019 Greer, USA Vaihingen, Germany Saltillo, Mexico IES HBPO HBPO IES: Intelligent Exterior Systems 2019 RESULTS February 19th, 2020 13
Slide 14: Preparing the future
Preparing the future CES CES IES 3 NEW R&D DELTATECH OMEGATECH SIGMATECH (Extension) CENTERS OPENED Brussels, BELGIUM : Wuhan, CHINA : Lyon, FRANCE : IN 2019 Advanced Research Center Asia R&D Center Global R&D and Digital Center 140 engineers & scientists 150 engineers & scientists 500 enginee
Slide 15: A state of the art footprint with available capacity and reinforced R&D
A state of the art footprint with available capacity and reinforced R&D 12 4 21 NORTH AMERICA 58 EUROPE/AFRICA 46 ASIA 2 SOUTH 8 6 131 PLANTS AMERICA 26 R&D CENTERS 2019 RESULTS February 19th, 2020 15
Slide 16: A diversified portfolio of customers offering growth opportunities
A diversified portfolio of 93 customers offering growth opportunities MASS MARKET OEMS PREMIUM OEMS PURE EV OEMS CHINESE OEMS Beijing Auto Senova Changhe Dongfeng GAC * * * * * * * * * * 93 CUSTOMERS GLOBALLY … + 10 ADDED IN 2019 * New customers in 2019 2019 RESULTS February 19th, 2020 16
Slide 17: 2019 Financial Results
2019 Financial Results ADELINE MICKELER
Slide 18: Economic sales: +11.4% and +1.1% at constant change and perimeter
Economic sales: +11.4% and +1.1% at constant change and perimeter ∆ ∆ at constant In €m 2018 2019 perimeter & in % exchange rate PO Industries 6,834 6,919 +1.2% -0.1% PO Modules 1,410 2,264 +60.5% +5.0% Economic sales 8,244 9,183 +11.4% +1.1% JVs 999 689 -31.0% -2.5% Consolidated sales 7,245 8,494 +
Slide 19: Outperformance of the automotive production
Outperformance of the automotive production Auto production 2019: 86.0 million vehicles -5.8% 2018: 91.2 million vehicles Outperformance: +6.9pts Plastic Omnium sales +1.1% at constant perimeter and exchange rate 2019 RESULTS February 19th, 2020 Source: IHS February 2020 19
Slide 20: Outperformance by region
Outperformance by region NORTH AMERICA EUROPE CHINA Outperformance +10.2pt Outperformance +4.1pt Outperformance +12.3pt Auto production -4.2% Auto production -5.1% Auto production -8.9% PO sales +6.0% PO sales -1.0% PO sales +3.4% SOUTH AMERICA ASIA (excl. CHINA) Outperformance +14.8pt Outperformanc
Slide 21: 2019 Economic sales per region
2019 Economic sales per region 9% 16% CHINA ASIA 7 % ASIA (excluding China) 2% SOUTH AMERICA 53% EUROPE 29% NORTH AMERICA Europe including Africa 2019 RESULTS February 19th, 2020 21
Slide 22: 2019 Economic sales by OEM
2019 Economic sales by OEM 2% 15% Others TOP 10 CUSTOMERS French 1 PSA 9.2% 41% 2 Audi 8.7% 3 BMW 8.4% German 4 8.3% 22% Daimler 5 Volkswagen 8.1% Asian 6 General Motors 8.1% 7 Ford 6.3% 8 Chrysler 6.0% 9 Renault 5.6% 20% 10 Jaguar Land Rover 5.1% American 2019 RESULTS February 19th, 2020 22
Slide 23: 2019 Profitability by business
2019 Profitability by business In €m 2018 % sales 2019 % sales Consolidated sales 7,245 100% 8,494 100% PO Industries 6,288 87% 6,398 75% PO Modules 957 13% 2,096 25% EBITDA 918 12.7% 1,005 11.8% PO Industries 865 13.8% 898 14.0% PO Modules 53 5.6% 108 5.1% Operating Result 610 8.4% 511 6.0% PO Indu
Slide 24: 2019 Profit & Loss account
2019 Profit & Loss account In €m 2018 2019 Economic sales 8,244 9,183 Consolidated sales 7,245 8,494 EBITDA 918 1,005 In % of sales 12.7% 11.8% Operating result 610 511 In % of sales 8.4% 6.0% Other operating expenses +114 -67 In % of sales +1.6% -0.8% Financial expenses -70 -78 In % of sales -1.0%
Slide 25: 2019 Cash-flow statement
2019 Cash-flow statement In €m 2018 2019 Consolidated Sales 7,245 8,494 Net Debt (beginning of the period) -571 -698 Net Operating Cash Flow +797 +910 in % of sales 11.0% 10.7% Taxes & Net Financial Interest paid -149 -164 Capex and development -562 -512 in % of sales -7.8% -6.0% Real estate divestm
Slide 26: 2019 Key financial metrics
2019 Key financial metrics EBITDA (in m€) NET DEBT (in m€) NET DEBT/EBITDA 698 739 0.8 1,005 571 IFRS16 0.7 892 918 0.6 IFRS16 IFRS16 951 511 511 0.5 2017 2018 2019 2017 2018 2019 2017 2018 2019 SHAREHOLDERS’ EQUITY (in m€) GEARING ROCE 2,188 2,347 26% 32% 32% 32% 1,761 21% IFRS16 17% 22% 18% exclud
Slide 27: Innovation – 2019 highlights
Innovation – 2019 highlights FÉLICIE BURELLE Date 27
Slide 28: Managing a transforming market
Managing a transforming market Maturity (market/consumer) C ONNECTED Low High A UTONOMOUS Low High S HARED Low High E LECTRIFIED Low High 2019 RESULTS February 19th, 2020 28
Slide 29: Taking advantage of the CASE
Taking advantage of the CASE Go from market share to content per vehicle 2019 RESULTS February 19th, 2020 29
Slide 30: Extending our offer
Extending our offer Smart Tailgate Roof Energy storage systems & conversion systems Smart Door Cockpit module & center console Smart Face Front-end module Active shutters Hydrogen vessel 2019 RESULTS February 19th, 2020 30
Slide 31: Extending our offer – 2019 developments & successes
Extending our offer – 2019 developments & successes 1st contract On-going 1st contract in production production in development (Porsche Taycan) (Audi Q3 & Q5) (Californian player) 1st contract in development (German player) 1st contract & certification in production (BMW) 2019 RESULTS February 19th,
Slide 32: Implementing successful technological partnerships
Implementing successful technological partnerships SMARTFACE INNOVATIVE DOOR SYSTEM Partnership with Partnership with All-new door concept STYLISH & AERODYNAMIC LIGHTS & ELECTRONICS “Shaped-in” mirrors & air ducts integrated into plastic parts Seamless window panes 1ST PRE-DEVELOPMENT CONTRACT PROOF
Slide 33: Developing PO thanks to our venture capital investments
Developing PO thanks to our venture capital investments Energy transition and mobilities of the future Hydrogen ecosystem €20m commitment made in September 2017 $30m commitment made in November 2019 3 ON-GOING DEVELOPMENTS BUILD-UP PHASE Implementation of a big data software to manage all the Relyin
Slide 34: CSR Results & Strategy
Date CSR Results & Strategy LAURENT FAVRE
Slide 35: 2019 CSR Results
2019 CSR Results 2019 SCORE: 2019 SCORE: 67% (vs 63% in 2018 and 60% in 2017) 72% Gold level (vs 71% in 2017) Average in the auto components industry: 36% PLASTIC OMNIUM RANKED PLASTIC OMNIUM IN THE TOP 1% OF THE BEST 8TH WORLDWIDE AUTOMOTIVE SUPPLIERS COMPANIES EVALUATED BY ECOVADIS 2019 RESULTS Fe
Slide 36: An ambitious Corporate Social Responsibility (CSR) strategy
An ambitious Corporate Social Responsibily (CSR) strategy RESPONSIBLE CARE SUSTAINABLE ENTREPRENEURS FOR PEOPLE PRODUCTION Protect People & Plastic Omnium People mobilization, enthusiasm Protect the planet & attractiveness & reduce environmental impact Business Ethics Safety at work Top Planet
Slide 37: Ambitious targets to constantly improve our CSR fundamentals
Ambitious targets to constantly improve our CSR fundamentals RESPONSIBLE ENTREPRENEURS Protect People & Plastic Omnium RESPONSIBLE PURCHASING ETHICS COMMITMENT INDEX INDEX 2019 RESULT 2019 RESULT 68% 89% of employees trained 2025 TARGET 2025 TARGET over 90% 100% of employees trained 2019 RESULTS Feb
Slide 38: Ambitious targets to constantly improve our CSR fundamentals
Ambitious targets to constantly improve our CSR fundamentals CARE FOR PEOPLE People mobilization, enthusiasm & attractiveness SAFETY GENDER AT WORK DIVERSITY 2019 RESULT 2019 RESULT Fr2*= 1.85 13.5% women in senior management 17.9% women managers -31% vs 2018 vs 12.3% and 17.6% in 2018 2025 TARGET 2
Slide 39: Ambitious targets to constantly improve our CSR fundamentals
Ambitious targets to constantly improve our CSR fundamentals SUSTAINABLE PRODUCTION Protect the planet & reduce environmental impact TOP PLANET PROGRAM RENEWABLE IMPLEMENTATION* ENERGIES 2019 RESULT 2019 RESULT 49% 4 new sites using renewable energies vs 45% in 2018 2025 TARGET 2025 TARGET 60% >50%
Slide 40: 2020 CSR outlook
2020 CSR outlook CONTINUOUS IMPROVEMENT OUR CONTRIBUTION ON ACT FOR ALL® PROGRAMME FOR A GREENER ECOSYSTEM Develop with our customers a carbon neutral strategy Implement a lifecycle analysis on our products and increase PO values Enthusiasm the use of recycling plastic 2019 RESULTS February 19th, 20
Slide 41: 2020 Outlook
2020 Outlook LAURENT FAVRE
Slide 42: Delivering in a decreasing market
Delivering in a decreasing market Automotive Production assumptions : (In million vehicules) Market challenges -?% EUROPE -2.1% CO2 emission reduction Brexit NORTH AMERICA Production stabilized 86.0 84.2 ? depending on at a high level Covid-19 impact CHINA Low visibility yet on coronavirus impact 20
Slide 43: Plastic Omnium in China
Plastic Omnium in China 29 plants 857 M€ 2019 ECONOMICS SALES 2 R&D Centers = 5 469 EMPLOYEES 9% of sales Asia Headquarter 2019 CONSOLIDATED SALES 370 M€ 4% of sales HUBEI PROVINCE (Wuhan) Changchun 2 IES plants 1 CES plant Shenyang Yankang 1 R&D Center = 588 EMPLOYEES Yangzhen Yantai Zhengzhou Anti
Slide 44: Reinforcement of cost reduction programs
Reinforcement of cost reduction programs Continuous flex German footprint Regional synergies of our industrial footprint optimization reinforced Performance Inventory management : transformation programs reduction of number of days, through digitalization mutualisation of spare parts, … 2019 RESULTS
Slide 45: A strong activity with starts of production in 2020
A strong activity with 207 starts of production in 2020 64 EUROPE 26 AMERICAS 117 ASIA 207 starts of production in 2020 2019 RESULTS February 19th, 2020 45
Slide 46: 2020 Financial outlook
2020 Financial outlook On the basis of current production hypothesis and excluding systemic Covid-19 impact On Outperformance Growth in operating More than €200m 5 points result and EBITDA free cash flow (in value) after investments capped at 6% 2019 RESULTS February 19th, 2020 46
Slide 47: Dividend: €0.74
Dividend: €0.74 Dividend evolution (In €) Proposed dividend of €0.74 per share 0.67 0.74 0.74 0.41 0.49 42% payout 2015 2016 2017 2018 2019 Shareholders’ meeting on April 23, 2020 at 5pm (Pavillon Dauphine - Paris) Payable on May 4th, 2020 2019 RESULTS February 19th, 2020 47
Slide 48: 2019 Results
2019 RESULTS LEVALLOIS, FEBRUARY 19TH, 2020