Regulatory News:

On the occasion of its "Investor Day" held today, Plastic Omnium (Paris:POM) is introducing its growth and innovation strategy for the 2016-2020 period.

€8 billion of consolidated revenue in 2020

Plastic Omnium confirmed that its business will continue to outperform the worldwide automotive production over the 2016-2020 period to reach €8 billion of consolidated revenue in 2020, compared with €5 billion in 2015 (i.e. an economic revenue of €9.5 billion in 2020 compared with €6 billion in 2015).The Group's future growth is driven by an ambitious development and innovation strategy:

  • Gains in market sharesAlready the world leader in each of its businesses, Plastic Omnium will reinforce its leading positions with an expected 19% of the bumper market in 2020, compared with 15% in 2016, and 25% in fuel systems, compared with 21% in 2016. These gains in market shares are based on a robust backlog – 90% of the 2020 revenue already secured.Further capacities and an improvement in the plant loading of the Group's industrial footprint will enable this growth to be achieved.
  • Strong development of its innovative product lines:The hardening of regulatory constraints (CO2 and NOx) worldwide is an important growth lever for Plastic Omnium's businesses. The Group is developing innovative solutions to make vehicles lighter (plastic tailgates, composite and carbon fiber parts), to improve aerodynamics (spoilers), and for SCR emissions control systems and specific fuel tanks for plug-in hybrid vehicles. The ramp-up of these product lines will enable Plastic Omnium to achieve a revenue of more than €1.4 billion in 2020 with these innovative solutions, compared with €700 million in 2016.

Self-financed investments of €2.5 billion over the 2016-2020 period while maintaining a strong free cash-flow

To respond to its commercial success with the main carmakers worldwide and to future market requirements, Plastic Omnium will invest €2.5 billion over the 2016-2020 period. These investments are intended to strengthen and maintain its industrial footprint as well as to develop new automotive programs.This investment policy will be conducted while enabling the Group to generate a significant cash surplus every year from operations.

Benchmark profitability

The strong growth expected over the 2016-2020 period will be accompanied by strict management of industrial and project costs, which will continue to place Plastic Omnium’s profitability among the best in the automotive equipment industry.

Plastic Omnium will benefit from the following operating levers over the period:

  • the expected recovery of activities stemming from the acquisition of Faurecia Auto Exterior;
  • the improvement in plant loading of the Group's industrial footprint;
  • the growth in the Group's activities in North America;
  • the success of the innovation portfolio;
  • and the accretive impact of non-strategic activities’ disposals.

Innovation: being positioned to take advantage of technological changes in the automotive industry

Building on this strategy of profitable and cash-flow-generating growth, Plastic Omnium is increasing its capacities for innovation to propose new solutions to carmakers, solutions that will respond to changes in automotive technologies. By investing 6% of its revenue each year in research and development, the Group is positioning itself to design the external body parts of the vehicle of the future and to be a reference equipment manufacturer for all propulsion energies (gasoline, diesel, hybrid, hydrogen and electric).

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The detailed presentation of this 2016-2020 growth and innovation strategy will take place on Tuesday, December 13, 2016 at 10 am, Paris time.It will also be available by webcast on the Plastic Omnium Group website www.plasticomnium.com.

Glossary

1. Economic revenue corresponds to consolidated revenue, plus revenue from the Group's joint ventures, consolidated at their percentage of ownership. This metric reflects the operating and managerial realities of the Group.

2. The consolidated revenue, in implementation of IFRS Standards 10-11-12, does not include the share of joint ventures, which are consolidated by using the equity method.

Plastic Omnium is the world leader in automotive exterior components and modules, automotive fuel systems, and waste container solutions for local authorities and companies. The Group has 32,000 employees across 130 plants, 23 R&D centers and 31 countries worldwide. Plastic Omnium is listed on Euronext Paris, compartment A. It is eligible for the Deferred Settlement Service (SRD) and is part of the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).

Plastic OmniumFinancial InformationTel. : +33 (0)1 40 87 66 78Fax : +33 (0)1 40 87 96 62investor.relations@plasticomnium.com

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