2016 Half-Year Results
Levallois, July 27th, 2016 H1 2016 Highlights
A strong H1 3
ECONOMIC SALES CONSOLIDATED SALES
(in €bn) +8.0% (in €bn) +7.5% 3.2 +11.0% 2.7 +10.4% 2.9 at constant exchange rate 2.5 at constant exchange rate
H1 2015 H1 2016 H1 2015 H1 2016 OPERATING MARGIN NET PROFIT, GROUP SHARE (in €m) (in €m) +12.7% +9.5% 267 155 237 142
10.1% 5.8% 9.6% 5.7%
H1 2015 H1 2016 H1 2015 H1 2016 CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM A strong H1 4
EBITDA CAPEX
(in €m) +10.5% (in €m) 383 164 174 347
6.5% 14.4% 6.6% 14.0%
H1 2015 H1 2016 H1 2015 H1 2016 FREE CASH FLOW NET DEBT (in €m) (in €m) -€91m 107 354 92 263
4.3% 3.4%
H1 2015 H1 2016 H1 2015 H1 2016 CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM A significant outperformance of the automotive production 5
Auto production H1 2015: 43.5 million of vehicles +2.2% H1 2016: 44.4 million of vehicles Outperformance: +9.7 pts Plastic Omnium Auto sales at constant exchange rate +11.9%
CONFIDENTIAL
Source: IHS July 2016 COMPAGNIE PLASTIC OMNIUM H1 2016 : 88 successful launches with 15 in innovative products 6
North/South America Europe Asia 18 33 37 launches launches launches
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM Strong operational performance 7
PRODUCTION & PLANT LOADING OVERHEAD COST Tf2 In % -0.9pt -31% 84% +1pt 85% 4.65 30.3 29.4 3.22 HIGH TIGHT INDUSTRIAL PRODUCTION LEVEL COST CONTROL EXCELLENCE
H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016
100% = 3 shifts x 5 days a week Frequency rate = number of lost-time accidents per OPERATING MARGIN 1 million hours worked
+12.7% 237 267
10.1% 9.6%
H1 2015 H1 2016 CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM New capacities to seize the growth 8
2 new plants in H1 2016 At the end of June 2016: SOP January SOP June
Mexico United San Jose Kingdom plants 122 Chiapa Warrington Front-end Bumpers in 25 countries modules
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 highlights 9
CORPORATE FINANCE Free Float Burelle SA January 1st 39.11% 57.01% March 21st Jean-Michel Szczerba Share capital reduction appointed Co-CEO of of 0.72% Plastic Omnium Employees 1.07% Treasury shares April 15th 2.81% 70th anniversary of Plastic Omnium June 17th Schuldschein private placement issued April 15th (€300m, 7 years with a French President official fixed rate at 1.48%) opening of α-Alphatech R&D center (France)
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 highlights 10
AUTO SHOW AWARDS th January February 26 Exhibition at the North Toyota’s highest supplier award American International Auto (“Global Contribution Award”) Show in Detroit received
April/May May 24th Exhibition at the Beijing 5 “Best Plant” awards received from International Automotive PSA (Arevalo, Guichen, Langres, Exhibition Redondela and Vigo) To come: June 8th October 1st - 16 2016 “L.E.A.D.E.R. award” received Exhibition at the Paris Mondial from Automotive News Europe and de l’Automobile the Automotive Intelligence Center CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 highlights 11
INNOVATION – EMISSION REDUCTION Exterior parts Fuel Systems First fuel system for plug-in 2nd order for a new structure hybrid vehicles to be launched part of carbon fiber composite in Korea for a Hyundai vehicle (first delivery in 2017) 7 additional models for 3 Order for all exterior parts of a other carmakers in Asia and 100% electric vehicle (new Europe equipped with this innovation by 2018 carmaker) Corporate
Success of aerodynamic offer with a mobile spoiler order for Appointment of a Porsche Scientific Director
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 highlights 12
ENVIRONMENT Contracts May Exhibition at IFAT, the world's • Recycling banks for voluntary waste leading trade fair for water, sorting in Lyon (France) sewage, waste and raw materials management, in Munich • Wheeled containers in Oslo (Norway) Presentation of the new underground container M4 and • Full service for hydraulic underground semi underground Rotomax containers in Guadalajara (Mexico)
June New Customer Services Center in Saint Priest (France)
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM 2016 Half-Year Results H1 2016 sales by business 14
∆ ∆ at constant In €m H1 2015 % sales H1 2016 % sales perimeter & in % exchange rate
Automotive 2,753.0 93% 2,992.8 94% +8.7% +11.9%
Environment 192.3 7% 186.7 6% -2.9% -2.1%
Economic sales 2,945.3 100% 3,179.5 100% +8.0% +11.0%
Joint-ventures 471.0 519.5 +10.3% +14.3%
Consolidated sales 2,474.3 100% 2,660.0 100% +7.5% +10.4%
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 2016 performance per region vs auto production 15
NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA)
Auto production +2.7% Auto production +5.3% Auto production -1.5% 2.4 PO sales * +4.1% PO sales * +15.9% PO sales * +8.7% 1.4 Outperformance +1.4pt Outperformance +10.6pt Outperformance +10.2pt
SOUTH AMERICA CHINA
Auto production -22.2% Auto production +5.6%
PO sales * +25.1% PO sales * +14.6% Outperformance +47.3pt Outperformance +9.0pt
* Plastic Omnium economic automotive sales at constant exchange rate CONFIDENTIAL
Source: IHS July 2016 COMPAGNIE PLASTIC OMNIUM H1 2016 economic sales per region 16
9% 8% China Asia (excluding China)
2% South America 55% Europe & Africa 26% North America
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 2016 Auto economic sales by customer 17 3% 31% 19% Others German French VW: 10% PSA: 12% BMW: 9% Renault: 7% Daimler: 4% Audi: 3% Porsche: 2% Skoda: 2% Opel: 1% Seat: 1% 20% Asian JLR-Tata: 7% 27% HMC: 5% American Nissan: 3% Toyota: 2% GM: 14% Volvo-Geely: 1% Ford: 7% Others: 2% FCA: 5% CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 2016 Profitability by division 18
∆ In €m H1 2015 % sales H1 2016 % sales in %
Consolidated sales 2,474.3 100% 2,660.0 100% +7.5% Automotive 2,282.0 92% 2,473.4 93% +8.4% Environment 192.3 8% 186.7 7% -2.9% EBITDA 346.9 14.0% 383.3 14.4% +10.5% Automotive 328.6 14.4% 363.8 14.7% +10.7% Environment 18.3 9.5% 19.5 10.5% +6.5% Operating Margin 237.3 9.6% 267.4 10.1% +12.7% Automotive 226.2 9.9% 255.3 10.3% +12.8% Environment 11.1 5.8% 12.1 6.5% +8.8%
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 2016 Profit & Loss account 19
In €m H1 2015 H1 2016 ∆ in %
Consolidated sales 2,474.3 2,660.0 +7.5% Operating margin 237.3 267.4 +12.7% In % of sales 9.6% 10.1% Other operating expenses -24.3 -33.2 Financial expenses -26.5 -31.4 In % of sales -1.1% -1.2% Income Tax -41.9 -44.3 Net Result 144.6 158.4 +9.6% In % of sales 5.8% 6.0% Net Result - Group Share 141.8 155.3 +9.5% In % of sales 5.7% 5.8%
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COMPAGNIE PLASTIC OMNIUM H1 2016 Cash Flow statement 20
In €m H1 2015 H1 2016 Sales 2,474 2,660 Net Debt (beginning of the period) -390 -354 Net Operating Cash Flow 321 347 in % of sales 13.0% 13.1% Taxes & Net Financial Interest paid -61 -77 Capex and R&D capitalized -164 -174 in % of sales 6.6% 6.5% Change in WCR +10 -5 Free Cash Flow +107 +92 Dividends -55 -61 Treasury shares -19 -33 Perimeter/Currency/Other +3 +6 Net Debt (end of the period) -354 -263
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H1 2016 key financial metrics 21
EBITDA NET DEBT NET DEBT/EBITDA
(in m€ and % of sales) (in m€) 354 383 0.5 347 268 263 0.4 0.4
14.4% 14.0% 7.3% 6.4%
H1 2015 H1 2016 H1 2015 2015 H1 2016 H1 2015 2015 H1 2016
SHAREHOLDER’S GEARING ROCE EQUITY (in m€) 1,345 1,193 1,301 31.1% 30% 27.8% 29.9% 21% 20%
7.3% 6.4%
H1 2015 2015 H1 2016 H1 2015 2015 H1 2016 H1 2015 2015 H1 2016 CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM H2 2016 auto production: +3.4% 23
NORTH AMERICA EUROPE & AFRICA ASIA (excl. CHINA) +3.2% +3.6% -0.2% xx% 10.8 11.1 10.7 10.7 du CA 8.2 8.4
H2 2015 H2 2016 H2 2015 H2 2016 H2 2015 H2 2016 SOUTH AMERICA CHINA
+7.5% 11.6 12.4
-5.5% 1.4 1.3
H2 2015 H2 2016 H2 2015 H2 2016 CONFIDENTIAL
Source: IHS July 2016 COMPAGNIE PLASTIC OMNIUM H2 2016 : 71 new launches with 12 in innovative products 24
North/South America Europe/Africa Asia 10 22 39 launches launches launches
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM New capacities under construction in growing markets 25
4 plants under construction 2016 2017 2018
Mexico Mexico, China, India, Leon San Luis Potosi Chongqing Hansalpur Fuel systems Bumpers Fuel systems Fuel systems
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COMPAGNIE PLASTIC OMNIUM Acquisition of Faurecia Auto Exterior 26
July 11, 2016: Authorization from the European Commission to acquire the Faurecia Auto Exterior business with the obligation to sell all French sites, a Spanish site for the bumper business and the German front-end modules business. July 29, 2016: closing SCOPE OF ACQUISITION
Front-end modules Others* €0.1bn €0.2bn Germany €1.2bn Spain €1.2bn €0.8bn Bumpers €0.2bn €1.1bn
Estimated 2016 sales * Belgium, Slovakia, USA, Brazil and Argentina CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM Acquisition of Faurecia Auto Exterior 27
Germany Belgium 5 1 Slovakia 2 USA 1
Brazil 1 3 Spain
1 Argentina 5,500 people x Number of industrial sites in each country 14 plants 1 R&D center in Germany (300 people)
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM Acquisition of Faurecia Auto Exterior 28
SALES BY CUSTOMER
BMW Others Seat 4% 4% 2% General Motors 4% PSA Audi 4% 23% 50% of this revenue comes Fiat Chrysler from new clients Automobiles 8%
Daimler 40% of this revenue comes 15% from premium clients Volkswagen 22% Ford 14%
Estimated 2016 sales CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM Acquisition of Faurecia Auto Exterior 29
FINANCIAL OUTLOOK
Contribution of Faurecia Auto Exterior to the group’s operating margin
2019 +€70m €120m of synergies
Proforma 2016 €50m
2016 2019
Implementation of PO’s industrial standards and processes: +€100m additional Capex
(from 3% of sales to 6%) CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM Plastic Omnium of tomorrow 30
• A world’s leading tier-one supplier of the automotive industry, with 15% market share in bumpers and 21% in fuel systems
• €7.5bn proforma 2016 sales
• 32,000 employees, 136 plants and 22 R&D centers
• #28 in global OEM supplier ranking
• Reinforced capacity for growth and innovation
• Continue to deliver profitable growth and free cash flow
CONFIDENTIAL
COMPAGNIE PLASTIC OMNIUM 2016 Half-Year Results
Levallois, July 27th, 2016