Shareholders Visit at the International Research & Development Center Alphatech in Compiègne (France)

06-11-2019 Shareholders

As every year, Plastic Omnium has organized a visit for its individual shareholders.

Twenty shareholders have had the opportunity to visit the ?-Alphatech R&D Center to discover the Group’s storage and depollution solutions dedicated to different kind of engines.

Opened in 2014 and inaugurated in April 2016 by President François Hollande, the center has expanded his expertise from fuel systems, emissions reduction to the storage and distribution for all energies. ?-Alphatech employes more than 600 engineers, of 30 different nationalities, it deposits about 70 programs every year and supports 35 SOPs (starts of production) worldwide.

Shareholders Visit at the International Research & Development Center ?-Alphatech in Compiègne (France)

Strong growth in revenue at September 30, 2019

24-10-2019 Finance

In the 3rd quarter 2019:
– Revenue of €2,240.8 million, up 10%
– Outperformance of 11.7 points over worldwide automotive production

For the first nine months of 2019:
– Revenue of €6,851.8 million, up 17%
– Outperformance of 8.7 points over worldwide automotive production

For the 2019 full-year, in expectation of a decline of around 6% in worldwide automotive production, the Group confirms:
– outperformance of at least 5-points over worldwide automotive production
– an operating margin of around 6.0% of revenue,
– 2019 EBITDA exceeding 2018 EBITDA (€918 million),
– free cash-flow of around €300 million, including the impact of the real estate disposal project already announced.

“In a complex market environment marked by a drop of around 6% in worldwide automotive production in 2019, Plastic Omnium posts strong outperformance, reflecting market share gains in all of its business lines, along with the ramp-up of the Group’s new production facilities and the success of its range of innovative products.
Despite the short-term impact on profitability due to operational difficulties in the ramp-up of our Greer plant in the US, the Group’s fundamentals remain solid and its cost reduction and free cash-flow generation programs have been reinforced.
Our growth will continue in the upcoming years thanks to our solid order book and the 12 plants and 3 R&D centers opened in 2018-2019.”

Laurent Burelle, Chairman and Chief Executive Officer

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ACT FOR ALL

23-10-2019 Act For All

Plastic Omnium strengthens its CSR commitment

Since 1946, Plastic Omnium has supported the many changes that have taken place in the automotive industry. Lighter cars, emissions reduction , search for cleaner energies, sustainable mobility is historically at the core of our knowhow and at the heart of our business.

Family owned and responsible company, whose growth is built on human and entrepreneurial values Plastic Omnium structures his CSR policy to become a referent partner for his customers in sustainable mobility.

ACT FOR ALL marks a new ambition, in a spirit of continuous improvement of our environmental policy, towards a unique and shared vision of collective commitment.

Today, October 23, 2019 the first ACT FOR ALL day mobilises all of Plastic Omnium world teams around the 3 CSR following pillars:
– Responsible entrepreneurs
– Care for people
– Sustainable production

A history of engagement, concrete initiatives

Today Plastic Omnium launches its new CSR program, ACT FOR ALL !

It marks a new ambition in a spirit of progress and continuous improvement of our safety and environmental approach. A global and unifying program, ACT FOR ALL embodies the commitment of a Responsible Group to sustainable business practices.

The operational objectives are global. In each site, actions will be undertaken to train the teams with ethical obligations, the preservation of the environment, the support of local populations, and health and safety.

In view of the important technological, climate and societal challenges, ACT FOR ALL is in general commitment in the general interest, in order to systematize and measure our actions for everyone, every day.

Our CSR strategy is built on 3 pilars

A GENERAL COMMITMENT TO THE PUBLIC INTEREST

The ACT FOR ALL approach, built on 3 axes, marked out with 10 markers, guides our actions, in the interest of all the stakeholders:
1. Responsible entrepreneurship: Plastic Omnium makes ethics the pillar of its responsible performance. A requirement shared by all its stakeholders.
2. Care for people: A family group, Plastic Omnium strives to provide safe, healthy and equitable working conditions for all its employees around the world, and offers them career and development opportunities.
3. Sustainable production: A responsible industrial company, Plastic Omnium strives to reduce the impact of its factories on the environment by optimizing its processes, from design to manufacturing.

To act and produce in a responsible way and in the respect of all, is part of the Plastic Omnium culture. World leader, the reduction of vehicle emissions is in our DNA, the thread of our research and the pride of our employees.

Read more about ACT FOR ALL

To view the video, click here

The International City of Gastronomy opens today, October 19th!

19-10-2019 Act For All

Plastic Omnium is proud to be sponsor of this ambitious project. An innovative concept combining museum and cultural center devoted to gastronomy.

Plastic Omnium, originally from Lyon, supports the region’s iconic gastronomy by sponsoring The International City of Gastronomy that will open in the historic building Lyon’s Grand Hôtel-Dieu, today, October 19th!

First cultural center entirely devoted to gastronomy, The International City of Gastronomy aims to become a place dedicated to exhibitions, meetings and culinary discoveries, with an innovative space “at the crossroads of food health and pleasure“.
4000 m², tailored to experience all aspects of gastronomy and dedicated to identity, know-how of French cuisine excellency.

Plastic omnium is proud to be sponsor, since the beginning, of the realization of this large-scale project !

To view the video, click here

Plastic Omnium review its financial outlook for 2019

08-10-2019 Finance

Despite strong activity and a buoyant backlog, operational difficulties affecting the start-up of the new Greer plant (South Carolina) have led the Group to review its financial outlook for 2019.

Over the first nine months of 2019, Plastic Omnium Group activity was very strong. Economic revenue amounted to €6,852 million (€6,356 million in consolidated revenue), up 17.0%. At constant scope and exchange rates, the rise was 2.7% compared to September 30, 2018, i.e. outperformance of 8.7 points compared to automotive production estimated to be down 6.0% over the period.

At the same time as this strong business, Plastic Omnium experienced significant operating difficulties in the ramp-up of its North American Greer plant (South Carolina). The difficulties encountered relate to the size of the plant, the complexity of the process and the acceleration of volumes since summer 2019.
A detailed action plan covering the 2019-2020 period has been put in place across the entire industrial footprint in South Carolina.
The impact of these difficulties has led the Group to review its operating margin outlook for 2019, which is now expected to be around 6% of revenue.

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Compagnie Plastic Omnium changes its governance:

24-09-2019 Group

Laurent Burelle becomes Chairman, Laurent Favre joins the Group as Chief Executive Officer and Félicie Burelle is appointed Managing Director.

On a proposal from Laurent Burelle, with an aim to pursue long-term growth for the Group by seizing opportunities related to the transformation of the automotive market, the Board of Directors of Compagnie Plastic Omnium, at its meeting today, decided to appoint a new leadership team and change the company’s governance structure.

Starting January 1st, 2020, Laurent Burelle, Chairman and Chief Executive Officer since May 2001, will become Chairman of the Group. Laurent Favre will be Chief Executive Officer (CEO) and Director. On a proposal from Laurent Favre, Félicie Burelle will become Managing Director, alongside the CEO.

Laurent Burelle declares :

”I’d like to thank Jean-Michel Szczerba for his dedication and loyalty to three consecutive family Chairmen and CEOs of the group, for his tremendous contributions to make Plastic Omnium a globalized automotive supplier that is a leader in its three business segments, with profitable growth.

Thank you also to Paul Henry Lemarié, who is leaving his role as Chief Operating Officer of Compagnie Plastic Omnium after 39 years, during which he supported and participated in all the key operations that have made the group so successful. Paul Henry Lemarié will continue in his role as Director and Chief Operating Officer of Burelle SA.

The automotive industry has entered a new phase of development marked by upheavals that are unprecedented in their scale and speed. With our solid human, technological and financial foundations, we are moving forward into this future with the long-term vision and enthusiasm that have made our group so successful from the start.

I am confident in the new leadership team’s ability to keep transforming Compagnie Plastic Omnium with the renewed support of Burelle SA, Compagnie Plastic Omnium’s controlling holding company, of which I am Chairman and Chief Executive Officer.“

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Plastic Omnium invests in AP Ventures, a venture capital fund dedicated to hydrogen

04-09-2019 Finance

Plastic Omnium has become co-sponsor and member of the Advisory Board Committee, of the AP Ventures fund, a venture capital firm headquartered in London and specializing in hydrogen and fuel cells. Its existing sponsors include Mirai Creation Fund, in which Toyota and Sumitomo Mitsui Banking Corporation (SMBC) are seed LPs, Mitsubishi Corporation, Anglo American Platinum and the South African investment fund PIC. Plastic Omnium’s commitment amounts to $30 million over the fund’s lifetime.

The Plastic Omnium Group thus confirms hydrogen as a strategic development axis, contributing additional resources to AP Ventures for its continued investments, on a global scope, in innovative companies in the upcoming fields of hydrogen, fuel cells and electric mobility.

This investment by Plastic Omnium comes shortly after the opening of two new R&D centers in July 2019: ?-Deltatech, in Brussels, to conduct advanced research on clean energies, and ?-Omegatech, in Wuhan, China, to develop Asian projects and hydrogen.

Félicie Burelle, Senior Executive Vice-President, Strategy and Development, at Compagnie Plastic Omnium, commented on this investment:
”The automotive world is living through tremendous technological disruption; we are accelerating and diversifying our strategy for innovation which will allow us to provide essential technology solutions for clean and carbon-free cars. Investing in AP Ventures alongside major industrial players demonstrates Plastic Omnium‘s commitment to the development of the hydrogen ecosystem.“

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1st half-year results 2019

19-07-2019 Finance

In the second-half of 2018, worldwide automotive production declined for the first time in 10 years (-4.4%); this decline steepened in the first-half of 2019 (-6.9%). In this context, in the first-half of 2019, Compagnie Plastic Omnium saw its revenue grow 20.7% and its results show good resilience thanks to cost savings plans carried out from the 4th quarter of 2018.

– Group revenue stood at €4,611 million, growing 20.7% at the new Group scope. Like-for-like, it was stable (+0.2%) and outperformed worldwide automotive production by 7.1 points, particularly in China and North America.
– The operating margin reached €281 million (6.6% of revenue), versus €324 million in the first-half of 2018 and €286 million in the second-half of 2018. It held up to the sharp decline and volatility of the market in China, Germany and the United Kingdom.
– After €64 million in additional depreciation on assets supporting future growth (excluding IFRS 16 impact), EBITDA increased by €54 million to reach €511 million.
– Net income, Group share, came in at €155 million and includes €25 million of restructuring costs.
– After €308 million in investments (7.2% of revenue), free cash-flow stood at €30 million. The second-half of 2019 will see lower investments which will represent, as announced, around 6% of revenue for full-year 2019.
– The financial structure is sound, with net debt of €1,021 million representing 46% of shareholders’ equity and 1.1x EBITDA, taking into account the application of IFRS 16 (+€234 million).

In expectation of an estimated 4.5% drop in worldwide automotive production for full-year 2019 (an estimated production of around 87 million vehicles in 2019 versus 91.3 million in 2018), Plastic Omnium strengthened its cost reduction plan.
In these market conditions, the Group is confirming outperformance from its businesses of at least 5 points in 2019 as well as free cash-flow generation of around €200 million. It now expects its operating income to decrease slightly compared to the €610 million achieved in 2018. 2019 EBITDA will show an increase compared to 2018 EBITDA.

Furthermore, on the basis of an independent valuation, Plastic Omnium expects to sell its commercial real estate assets to the real estate company Sofiparc, wholly-owned by Burelle SA which is also the holding company controlling Plastic Omnium. This transaction would enable the non-industrial real estate assets of Plastic Omnium to be rationalized and strengthen its financial structure.

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2019 First-Half results presentation 2019 First-Half results report

To view the replay of the Webcast, click here

Plastic Omnium is strengthening its innovation strategy by opening two new R&D centers in Belgium and China

04-07-2019 Innovation

These two R&D centers confirm Plastic Omnium’s commitment to clean, carbon-free mobility.

To meet the challenges of the car of the future, they focus on emissions control and fuel systems, as well as new energies developments.

ω-Omegatech, housing 150 engineers and technicians in Wuhan (China), provides Plastic Omnium with the resources to support its Asian customers in their quest for clean mobility. With already 57 projects in development, ?-Omegatech will support the Group’s rapid growth in China, where its fuel systems market share is expected to double to reach 17% by 2022.

Δ-Deltatech, close to Brussels Airport in Belgium, enters service on July 1. Focusing on emissions reduction and fuel systems, it is also the spearhead for research and development into new energies, fuel cells and hydrogen storage. By the end of the year it is expected to house 150 engineers and technicians.

ω-Omegatech and Δ-Deltatech represent a global investment of €100 million.

The reduction of polluting emissions is at the center of Plastic Omnium’s innovation strategy for a cleaner, safer and more connected car.

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Plastic Omnium recognizes innovative projects from teams with the first "Innovation Awards"

11-06-2019 Innovation

Laurent Burelle, Chairman and CEO of Plastic Omnium, has presented the first “Innovation Awards” to the winning teams from Plastic Omnium in this first in-house challenge designed to inspire innovation.

In doing so, he rewarded the finest initiatives focused on three categories, each illustrating the issues in play for the group’s success and the future of the automotive industry. The ceremony was held in the presence of Alain Mérieux, a director of Plastic Omnium from 1993 to 2018, and the Chair of “Institut Mérieux”, the sponsor for this first edition.

Ten projects were rewarded in the three categories: Operational Excellence, Products and Open Innovation. They were the winners from the 168 candidacies submitted by over 600 group employees at 52 sites in 18 countries. They all illustrate the importance of digital technologies working for operational efficiency and products with higher added-value. The very many projects involving rechargeable hybrid vehicles confirm Plastic Omnium’s commitment along the road to clean mobility.

“Innovation which, from the outset has always driven the group’s development, is now more than ever the lever for the transformation and growth of Plastic Omnium. These Innovation Awards are the opportunity to give pride of place to all our employees who make a day-to-day contribution to the performance and competitiveness of Plastic Omnium”, said Ronan Stephan, the group’s Scientific Director at the end of the ceremony.

Given this success and the excellence of projects submitted, Plastic Omnium has here and now decided to repeat this in-house challenge in 2020.

Q1 2019 revenue

23-04-2019 Finance

Compagnie Plastic Omnium’s economic revenue amounted to €2,236 million in Q1 2019, up by 20%. At constant scope and exchange rates, the Group’s revenue was stable, in comparison to a 6.8% decline in worldwide automotive production.

“In a weakened environment, our growth was strong (+20%) thanks to the takeover of HBPO, the worldwide leader in front-end modules, in July 2018. As expected, we achieved a 6.5 point outperformance against worldwide automotive production, which saw a significant decline in Q1 2019.
While continuing to innovate for the autonomous, carbon-free car of the future, all of our teams are ready to face worldwide automotive production now expected to decline for the whole of 2019″.

Laurent Burelle, Chairman and Chief Executive Officer

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Solid 2018 results – Profitable growth and significant free cash flow confirmed for 2019

14-02-2019 Finance

“In 2018, Plastic Omnium went ahead with two major strategic moves, with the disposal of its Environment Business and the takeover of HBPO, the world leader for front-end modules. Now a pure automotive player, the Group is strengthening its leading positions to contribute to the technological transformations toward clean, connected and autonomous cars.
Our results, once again solid in 2018 despite the first drop in world automotive production since 2009, are giving us the key means we need to be successful with this strategy. Having already taken measures to face a complex market environment, we are confident in our capacity to make further progress in 2019.”

Laurent Burelle, Chairman and Chief Executive Officer of Compagnie Plastic Omnium

Solid performance
– Economic revenue: €8,244 million +7.6%
– Consolidated revenue: €7,245 million +12.6%
– Operating margin: €610 million, comparable to 2017 under IFRS 5
– Net profit, Group share: €533 million +25.4%

Generation of significant free cash flow strengthening the financial structure
– Free cash flow: €218 million after €562 million of investment (7.8% of revenue)
– Net debt: €698 million, representing 32% of equity and 0.8x EBITDA

A Group looking confidently to the future
– Proposed dividend: €0.74 +10%
– 2019 financial outlook: outperformance of worldwide automotive production by 5 points, growth in value of the operating margin, and generation of free cash flow of at least €200 million

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2018 annual results presentation 2018 annual results report

To view the replay of the Webcast, click here

Plastic Omnium and Hella sign a strategic partnership on integrated car body lighting

21-01-2019 Finance

Plastic Omnium and HELLA announce the launch of an innovative co-development project on integrated solutions, combining exterior body parts and lighting. HELLA is a leading, global, family-owned Company listed on the Frankfurt stock exchange, developing and manufacturing lighting technology and electronic products for the automotive industry.

The collaboration, involving engineering and design experts from both companies and based in Germany, will be focused on jointly developing new systems integrating innovative lighting technologies, and intelligent exterior systems, at the front and at the rear of the car.

”This new partnership between Plastic Omnium and HELLA, will provide the market with combined technologies and solutions, bringing together the best of the know-how on both companies on new styling and advanced functionalities for the body exterior. This will enhance the offer towards our customers in the fields of smart bumpers and tailgates, enriched with communication and lighting features“ says Laurent Burelle, Chairman and CEO of Plastic Omnium.

“Lighting is shaping the vehicle design more than ever. The demand for individualization and differentiation will continue to grow in the future. Additionally, lighting can also contribute to communication and safety in automated driving scenarios,” said HELLA CEO Dr. Rolf Breidenbach. “By further deepening the collaboration with our long-standing partner Plastic Omnium, we will have additional opportunities to further drive these market trends and offer our customers new levels of freedom in terms of functionality and design.”

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In the foreground:
Christopher Mokwa, HELLA-Senior VP Corporate Strategy and M&A,
Félicie Burelle, PLASTIC OMNIUM-Senior Executive VP Strategy and Development

In the background:
Laurent Burelle, PLASTIC OMNIUM-Chairman & CEO,
Dr Rolf Breidenbach, HELLA-CEO

Plastic Omnium issued a €300 million 7-year Schuldscheindarlehen

21-12-2018 Finance

Compagnie Plastic Omnium today completed a Schuldscheindarlehen (private placement under German law) for 300 million euros.
This is a 7-year private placement with a fixed coupon of 1.632%, without covenants or ratings.

The net proceeds of the issue will be used to meet the Group’s general financing needs as part of its profitable and independent growth strategy. It will strengthen the Group’s debt structure by extending the average maturity of its debt and diversifying its sources of financing.

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Laurent Burelle succeeds to Jean Burelle as Chairman and Chief Executive Officer of Burelle SA

19-12-2018 Finance

In its meeting today, the Board of Directors of Burelle SA, the holding company leading and controlling the Burelle Group, accepted Jean Burelle’s resignation from his position as Chairman and Chief Executive Officer under the provisions contained in the bylaws relating to the age limit. The Board unanimously decided to appoint Laurent Burelle as Chairman and Chief Executive Officer of Burelle SA, effective January 1st, 2019. Laurent Burelle retains his positions as Chairman and Chief Executive Officer of Compagnie Plastic Omnium, Burelle SA’s main subsidiary.

The Board of Directors thanked Jean Burelle for his decisive contribution to the Group’s development over more than 50 years, and in particular to the internationalization of Compagnie Plastic Omnium, a capital movement that enabled a French company to become the world leader in its activities, while retaining control by the founding family.

In passing on the chairmanship of Burelle SA to Laurent Burelle, Jean Burelle continues the family tradition, having himself succeeding to Pierre Burelle, the Group’s founder, as Chairman and CEO of Compagnie Plastic Omnium in 1987, and then as Chairman and CEO of Burelle SA in 2001. From 1987 to 2001, Compagnie Plastic Omnium’s expansion was important, increasing from €172 million in revenue and 2,000 employees to €1.6 billion in revenue and 9,000 employees in 2001.

Underlining the pertinence of Jean Burelle’s strategic vision, and in light of these circumstances, the Board of Directors has decided, with the favorable opinion of the Compensation Committee, to award exceptional compensation to Jean Burelle in respect of the positions he held, based on his compensation for the year 2018. The amount of this exceptional compensation will be set by the Board of Directors in March 2019, and will then be submitted for a vote to the Shareholders’ Meeting.

The Board of Directors also applauded the decision to continue the family control by welcoming Laurent Burelle as Chairman and Chief Executive Officer of Burelle SA. Laurent Burelle, who joined the Plastic Omnium Group in 1975, became the Group’s Chief Executive Officer in 1987, and then Chairman and Chief Executive Officer in 2001.

Under his chairmanship, Compagnie Plastic Omnium continued its development to reach revenue of nearly €9 billion in 2018, pursuing internationalization that now stretches globally across all continents: Europe, North and South America, Asia, and China in particular. Today, the Group is the 26th largest automotive supplier in the world, present in 26 countries, with 122 plants and 24 R&D centers, developing and delivering complex systems for 83 automotive brands.

Governance of Burelle SA’s two other wholly-owned subsidiaries remains unchanged:
– Jean Burelle retains his position as Chairman of the private equity firm Burelle Participations;
– Laurent Burelle continues as Chairman of Sofiparc, a real estate company that manages the Group’s non-industrial real estate assets.

The development of Burelle SA and its subsidiaries, Compagnie Plastic Omnium, Burelle Participations and Sofiparc, accordingly remains underpinned by the same majority family commitment and continues with renewed confidence in the future, driven by the ability of the Group’s 31,000 employees to meet tomorrow’s challenges while remaining faithful to the values on which its success has been founded.

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From left to right: Jean Burelle and Laurent Burelle