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

Sale of the Environment business to the consortium Latour Capital/Bpifrance

18-12-2018 Finance

Compagnie Plastic Omnium confirms the sale of its subsidiary Plastic Omnium Environment BV to the consortium made up of Latour Capital and Bpifrance (Banque Publique d’Investissement). The deal is made for an enterprise value of €220 million.

The Environment business – which is Compagnie Plastic Omnium’s founding business – is the European leader in the containerization of waste. Standalone, profitable and cash-generating, with 6 plants in France, Germany and Spain, an R&D center, a customer service center recently inaugurated at Saint Priest (France), and with the large network of agencies and service desks serving 8,000 customers, this business generates an annual revenue of €340 million, thanks to a broad range of products and services dedicated to waste management (wheeled bins for household waste, collection banks, composters, underground and semi-underground containers; maintenance, washing, surveys and implementation, data management, incentive-based invoicing systems, etc.). Plastic Omnium Environment employs 1,800 people operating across 12 countries.

This project reflects Plastic Omnium’s decision to concentrate all of its human and financial resources on its automotive business. As the world leader in intelligent exterior systems, clean energy systems and modules for the automotive industry, the Group is implementing a strategy of innovation and profitable growth through sustainable mobility.

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Continuing a profitable growth strategy:

13-12-2018 Finance

Free cash-flow, cost reduction and industrial excellence to accelerate innovation and enhance technological content.

To mark its Investor Day, held today at its global R&D center for clean energy systems, α-Alphatech in Compiègne, Plastic Omnium is unveiling its strategy for profitable and independent growth to take account of the volatility of automotive markets in a context of technological change acceleration.

A global and diversified automotive pure player

An independent family Group, Plastic Omnium is a global player present in 26 countries, with 122 plants and serving 83 automotive brands.
Following the takeover of HBPO, the world leader in front-end modules, on July 1st, 2018, and the disposal of the Environment Division due to take place on December 17th, 2018, Plastic Omnium confirms its position as an automotive pure player organized around two operating segments with different business models:
– Plastic Omnium Industries, dedicated to production activities for intelligent exterior systems and clean energy systems, with significant investment and long cycles;
– Plastic Omnium Modules: dedicated to design and assembly activities for complex modules with low levels of capital employed.

2018: a complex market environment

2018 was marked by a steady increase in macro-political and macro-economic risks (trade wars, Brexit, slowdown in China), resulting in uncertainties and heightened volatility (currency, raw materials, interest rates, etc.). In this context, to which should be added the decline of diesel and new regulations relating to the certification of new vehicles in Europe (WLTP), the automotive market deteriorated in the second half-year, with an expected fall of 3.2%, following an increase of 2.2% in the first half, resulting in a decrease of 0.5% for the full-year.

In this market environment, Plastic Omnium confirms the following financial outlook for 2018 (compared with 2017 IFRS 5 data, i.e. restated for the Environment business):
– growth in economic revenue of at least 5%, i.e. revenue of approximately 8.9 billion euros in proforma figures;
– growth in consolidated revenue of at least 10%;
– 2018 operating result comparable to that of 2017 (615 million euros in 2017);
– a sharp increase in net result group share following scope effects;
– triple-digit free cash-flow.

Press release

Investor Day presentation

To view the replay of the conference

Plastic Omnium and Brose partner on innovative side-door systems

12-12-2018 Expertise

Plastic Omnium and Brose announce the launch of an innovative co-development project on automotive side-doors. Brose, leading family-owned automotive supplier headquartered in Coburg, Germany, is specialized in mechatronic systems for vehicle doors and seats.

The collaboration, involving engineering and design experts from both companies working in a newly established technical and program office in Nuremberg, Germany, consists in jointly developing a new hybrid door systems to anticipate future needs of our customers.
Plastic Omnium provides its technological know-how in body panels, crash and system design for car exterior and BROSE contributes its innovative solutions in the field of mechatronics and door systems.
”Incorporating Plastic Omnium and Brose technologies and know-how, will allow offering new styling, new functions and new vehicle assembly strategies. We thus intend to meet the challenges facing autonomous vehicles and to enhance driver and passenger safety and comfort“ agreed Laurent Burelle, Chairman and CEO of Plastic Omnium and Kurt Sauernheimer, CEO of Brose.

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Shareholders Visit at the International Research & Development Center ∑-Sigmatech in Sainte-Julie (France)

19-11-2018 Shareholders

Plastic Omnium has organized a visit for its individual shareholders, on Thursday, November 15, 2018.

21 shareholders have had the privilege of being guided by a team of engineers from the R&D Center of ∑-Sigmatech to discover the innovation programs developed for our business of intelligent exterior systems. The visit was an opportunity for shareholders to discover our vast expertise in industrial and innovation processes, thanks to various workshops such as injection molding, crash tests, pedestrian shock and weather resistance tests.

Built in 2002, this 16,000 m² center is divided into 3 poles : a pilot line, a laboratory and a benchmark room. ∑-Sigmatech employs more than 450 engineers, of 14 different nationalities and files about 100 patents a year.

Plastic Omnium will continue its communication strategy for its individual shareholders and will organize new site visits in 2019.

CSR: a responsible production

12-11-2018 Act For All

Plastic Omnium’s CSR approach is constantly being improved. Three areas of focus have been identified following a materiality analysis. Focus on the third of these priorities: sustainable production.

Sustainable and responsible production

Plastic Omnium also involves all its plants around the world to minimize its environmental impact, thanks to its “Top Planet” program launched in 2008. The action is divided into 4 axes.

1 – ISO 14001 certification

At the end of 2017, 90% of Plastic Omnium’s industrial facilities were ISO 14001 certified. This environmental management system guarantees the limitation of impacts on the environment and biodiversity. It requires training and education. In 2017, 32,800 hours of environmental awareness and training were provided. The next step is ISO 50001 certification. 24 European sites are already certified and 15 others are aiming for certification by 2020. The goal: to reduce the company’s energy bill and environmental footprint and improve its competitiveness.

2 – Climate

Plastic Omnium continuously monitors the reduction of greenhouse gas emissions from its plants, their energy consumption and incorporates energy performance into their equipment purchases. To reduce the impact of transport, the sites are as close as possible to the manufacturers’ factories. Top Planet Awards are given each year to reward the best performing sites. In 2017, €10 million were invested in the environment and safety.

3 – Waste reduction

71% of material waste is reintroduced into production cycles when 18% is recovered and reused or incinerated to produce energy, representing 89% of the waste. Each year the percentage of final waste decreases, and stands at 11% in 2017.

4 – Air and water quality inside and outside sites

Plastic Omnium maintains good air quality inside and outside its plants. The products used in production are as low-emitting as possible. Water, which comes 97% from the urban network, is used in a closed circuit and does not discharge any effluent.

Plastic Omnium is already committed to the sustainable and responsible production of tomorrow by opening its plant 4.0 in Greer, South Carolina (United States). Its machines, which consume less energy and emit less greenhouse gases, combine performance with environmental responsibility.

To learn more about the responsible production of Plastic Omnium, read the Responsability and Engagement report.

Share capital reduction of 0.87% through the cancellation of treasury stock

08-11-2018 Finance

The Board of Directors of Compagnie Plastic Omnium, in a meeting held on October 30th, 2018, decided to proceed to the cancellation of 1,300,000 treasury shares, representing 0.87% of the share capital of the company.

This operation was completed today.

As a result of this operation, the share capital of Compagnie Plastic Omnium is reduced from 149,866,107 ordinary shares to 148,566,107 ordinary shares with a par value of €0.06, ie. an amount of €8,913,966.42.

The holding company Burelle SA increases its control from 58.00% to 58.51%.

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The Race For Water Odyssey in French Polynesia

07-11-2018 Act For All

The Race For Water Odyssey boat, powered by renewable energies, made a one-month stopover in French Polynesia. It is now heading for Samoa Island. As at each stage, the crew met with the inhabitants to raise their awareness of ocean conservation, plastic waste recycling and energy transition.

The objective of the Race for Water Odyssey mission is to alert and act to prevent plastic waste from reaching watercourses and oceans. Thanks to its local partners, the Race For Water Foundation is developing social and economic models that value plastic waste to encourage people to collect it.

At each stopover, the Race For Water team deploys programs in 3 parts: learn, share & act. These programmes are based on workshops with scientists, companies and associations, but also on meetings with students, public figures and various local actors. The goal is to raise awareness and have an impact on behaviour in the long term.

Race for Water, to preserve oceans and promote energy transition

In addition to its activities, the Race for Water odyssey is an inspirational ambassador for the energy transition. Indeed, the Race For Water boat is powered by solar energy, wind energy and hydrogen, without damaging the environment. During this stopover, nearly 500 students were able to board the boat to discover how it works, realizing that it is possible to travel with clean energy.

Plastic Omnium, technologic sponsor of the Race For Water Odyssey

Official sponsor of the Race for Water odyssey, Plastic Omnium provides the fuel cell and hydrogen tanks. Hydrogen is produced on board using a seawater desalination process. It is then stored in 25 storage systems that can contain up to 200 kg of this gas, which emits no CO². Hydrogen can produce enough electricity to propel the ship for 6 days in autonomy. On land and at sea, this hydrogen technology, which is in the process of being approved, is mature, reliable and sustainable.

To follow the Race For Water Odyssey, visit the expedition’s website.

Credits : Julien Girardot / Race for Water

Plastic Omnium's Innovation and Audacity

05-11-2018 Innovation

The car of tomorrow is designed today. Intelligent Exterior Systems, Clean Energy Systems, complex Modules, all Plastic Omnium’s businesses are reinventing themselves to build the car of tomorrow: cleaner, safer, more connected.

Intelligent Exterior Systems

World leader in Intelligent Exterior Systems, Plastic Omnium is an expert in the integration of complex functions, made possible by the performance of electromagnetic transparency of plastic materials. Embedding detection and connectivity systems in the body parts, lightening materials and stimulating aerodynamics, unlocking automotive design: these are Plastic Omnium’s fields of expertise for the body parts of the future.

Clean Energy Systems

As the world leader in Clean Energy Systems, at the beginning of the multi-propulsion car era, Plastic Omnium’s solutions have a bright future: SCR pollution control, water injection, hybrid vehicle systems, etc. Over time, Plastic Omnium is focusing on electric cars, through a fuel cell powered by hydrogen.

Today, its expertise covers three fields of this propulsion. The tank, with the acquisition of Optimum CPV, specialist in pressurized hydrogen vessels, the fuel cell via the PO-Celltech joint-venture and flow management with the acquisition of Swiss Hydrogen.

Complex Modules

The car of tomorrow, Plastic Omnium designs it in several modules. Front end module, roof modules, hood, rear end, the era of highly customized ready-to-assemble is already here.

Automotive innovation: a key part of Plastic Omnium’s culture

Faced with environmental and societal challenges, the automotive industry is undergoing a major change. To meet these, innovation is key. As part of the PO Way, it brings together the 31,000 collaborators of Plastic Omnium. In 2018, Plastic Omnium launched its first “Innovation Awards”, an internal competition designed to reward the most innovative projects.

To learn more about Plastic Omnium’s innovations, consult the Innovation and Audacity report. on our website