- Revenue up 15% to EUR8 billion
- Strong growth in revenue across all regions
- 15% increase in operating margin, amounting to 9.5% of revenue (vs. 9.0% in
- Sharp rise in net profit - Group share to EUR425 million, an increase of 36%
- 37% increase in dividend to EUR0.67
- Further improvement in results expected for 2018
"Plastic Omnium once again achieved a record year.
In 2017, we outperformed the global automotive market by nine points and posted
growth across all operating regions. We successfully consolidated the
businesses acquired in 2016 and continued to improve our industrial
With our financial solidity and confidence in our capacity to continue to
develop our activities and increase our profitability, we are stepping up our
innovation program in order to address the challenges of tomorrow's
carbon-free, connected and autonomous cars. We are investing in new research
centers, developing and acquiring new technologies, and training and recruiting
Our success remains underpinned by our industrial excellence and total quality
for our customers.
In a mixed global environment, we are enthusiastic as we move into 2018 with
the outlook of a further improvement in results."
Laurent Burelle, Chairman and Chief Executive Officer of Compagnie Plastic
Strong growth in revenue and results, and reinforcement of the financial
structure in 2017
The Board of Directors of Compagnie Plastic Omnium met on February 14, 2018,
under the Chairmanship of Laurent Burelle, and approved the consolidated
financial statements as at December 31, 2017.
In EURm Group 2016 2017 Change
Economic revenue(1) 6,935.7 8,000.6 +15.4%
Consolidated revenue(2) 5,857.3 6,768.5 +15.6%
Operating margin(3) 557.8 641.0 +14.9%
in % of consolidated revenue 9.5% 9.5%
Net profit - Group share 312.1 425.2 +36.2%
EBITDA(4) 810.0 933.0 +15.2%
in % of consolidated revenue 13.8% 13.8%
Investments 402.1 457.1 +13.7%
Free cash flow(5) 240.7 185.8 -
Net debt(6) at 12/31 800 563 -EUR237m
Net debt/shareholders' equity 53% 32% -21pt
Net debt/EBITDA 1.0 0.6 -0.4pt
Strong growth in revenue
In EURm, by business segment 2016 2017 Change Like-for-like
As at December 31, 2017, the economic revenue1 of Compagnie Plastic Omnium
amounted to EUR8,000.6 million, up by 15.4%. Over the year, exchange rates
reduced revenue by EUR98.6 million. Acquisitions and disposals had a positive
net impact of EUR707.7 million on revenue, compared to 2016.
This sharp increase is attributable to:
- organic growth of 10.8% in the automotive business, which outperformed global
automotive production by 8.6 points;
- the exterior systems acquired on July 29, 2016.
Consolidated revenue(2) reported by Compagnie Plastic Omnium amounted to
EUR6,768.5 million as at December 31, 2017, growth of 15.6% and of 9.6% at
constant scope and exchange rates.
Furthermore, at the end of 2017, Plastic Omnium launched the project of
disposal of its Environment division, whose revenue amounted to EUR335.5
million as at December 31, 2017, up by 2.5% at constant scope and exchange
Automotive Division: sharp growth across all regions in 2017
In EURm and % of economic
revenue, by region % change
Automotive Division 2016 2017 Change Like-for-like
Europe/Africa 3,396.4 4,050.1 +19.2% +6.3%
North America 1,804.8 2,035.5 +12.8% +15.3%
South America 187.7 261.4 +39.3% +26.5%
Asia 1,177.9 1,318.2 +11.9% +14.3%
Automotive economic revenue(1) 6,566.8 7,665.1 +16.7% +10.8%
The economic revenue1 of Plastic Omnium Automotive reached EUR7,665.1 million.
It was up by 16.7% as reported and by 10.8% at constant scope and exchange
rates, versus a 2.2% increase in worldwide automotive production in 2017
(source: IHS January 2018), thus outperforming the market by 8.6 points. This
growth is attributable to market share gains, the ramp-up of new production
capacities, and the success of the innovative products launched. The sharp
growth in revenue stemmed from all operating regions.
Business was sustained in Europe, which accounts for 53% of total automotive
sector revenue1. It rose by 19.2%, boosted by the acquisition of Exterior
Systems, a business which is mainly European. In a dynamic context of a 3.3%
production increase, Plastic Omnium grew by 6.3%, at constant scope and
exchange rates. In 2017, business was particularly strong in France (+12.0% at
constant scope and exchange rates), in the UK (+14.1% at constant scope and
exchange rates) partly due to the commissioning of the exterior parts plant of
Warrington-Liverpool for Jaguar Land Rover in June 2016, and in Germany (+8.3%
at constant scope and exchange rates).
Business in North America grew by 12.8% (15.3% at constant scope and exchange
rates) over the year, outperforming automotive production by 19.8 points. The
business benefited from the new capacities that have come on stream over the
past 3 years (2 plants commissioned in the United States in 2015, followed by 3
plants in Mexico in 2016-2017), and the expected ramp-up of SCR systems to
reduce diesel vehicle emissions in the United States. Moreover, in North
America, the Group benefited from its strong exposure to the SUV/Light Truck
segment which accounts for around 80% of its business.
Business in Asia, including China, increased by 14.3%, at constant scope and
exchange rates. In China, which represents economic revenue of EUR721 million,
i.e. 9% of total revenue, business growth at constant exchange rates amounted
to 17.0% for the year in an automotive production that rose by 2.7%, i.e. an
outperformance of 14.3 points. The Group benefited from the strong investments
made over the past 3 years to develop its industrial footprint - consisting of
26 plants - and win market share, particularly with Chinese auto-makers.
Plastic Omnium has 25 local brands in its portfolio, which account for a
growing share of the revenue earned in China (currently 16%), in particular
In the rest of Asia, business growth was 11.2% at constant scope and exchange
rates, driven by Japan, India and South Korea.
The innovation portfolio, which also contributes to the Group's ongoing growth,
was further reinforced, especially with the following:
- the development of SCR systems for reducing diesel vehicle emissions, which
continues to expand worldwide, with a surge of 28% over the year, taking
revenue up to EUR390 million. Eight new contracts recorded in 2017, including
four with new customers for China, India and Thailand;
- the range of tailgate and spoiler products, which represented revenue of
EUR255 million in 2017, was enhanced with 21 new contracts including five
additional customers (of which three new electric players);
- production of the first pressurized tanks for plug-in hybrid vehicles started
in December 2016 in South Korea for Hyundai. In addition, a second contract
entered production in January 2018, for Geely/Volvo in China. Five new
programs are under development in Asia and North America, comprising two
additional customers. With this technology, the Group is in a good position
to cater to the strong global growth of hybrid electric vehicles in the
Strong increase in operating margin and net profit
In 2017, the operating margin posted a hike of 14.9% and rose to EUR641.0
million, i.e. 9.5% of consolidated sales, versus EUR557.8 million in 2016, i.e.
9.5% of consolidated revenue.
Proforma*, the operating margin improved significantly, rising from 9.0% in
2016 to 9.5% in 2017.
In EURm 2016 2016 2017
Published data Proforma data
Group Operating Margin 557.8 581.7 641.0
In % of consolidated revenue 9.5% 9.0% 9.5%
* 2016 proforma data: includes Exterior Systems at January 1, 2016, without
restating the non-strategic disposals made in 2016 and 2017
The automotive operating margin stood at EUR619.8 million at December 31, 2017,
representing 9.6% of consolidated sales (versus 9.1% for 2016, proforma). On a
like-for-like basis, the automotive division improved its operating margin
- a high production capacity utilization rate worldwide (85%, based on three
teams per day, five days a week);
- the operational excellence employed during the 126 launches of new programs
completed throughout the year;
- a strict cost control;
- and the earlier than expected success of the recovery measures to turn around
the Exterior Systems business acquired in July 2016 (merging the two
organizations, adjusting the program portfolio, closing plants in the United
States in 2016 and in Brazil in early 2017, closing two paint lines in
Germany in 2017, streamlining the workforce, etc.).
The operating margin of Plastic Omnium Environnement amounted to EUR21.1
million in 2017, representing 6.3% of consolidated revenue, versus EUR22.7
million and 6.8% in 2016 (proforma, taking into account disposals of non-
strategic operations in highway signage and metal drums).
Moreover, in 2017, Plastic Omnium recognized net non-current expenses of
EUR59.2 million (compared to EUR85.3 million in 2016).
Net profit thus rose by 35.2% to EUR430.5 million, or 6.4% of consolidated
sales. Net profit - Group share came to EUR425.2 million (i.e. 6.3% of
consolidated sales), growth of 36.2%.
Sustained investments and strong generation of cash
Group EBITDA topped EUR933.0 million (13.8% of consolidated revenue) up by
15.2%, and net cash from operations came to EUR859.4 million (12.7% of
consolidated revenue), an increase of 17.3%.
Engaged in a sustained investment program totaling EUR2.5 billion over the
2017-2021 period, the Group invested EUR457.1 million in 2017, i.e. 6.8% of
consolidated revenue (versus EUR402.0 million i.e. 6.9% of consolidated revenue
in 2016), a rise of 13.7%. The exterior body parts plant of San Luis Potosi
(Mexico) and the fuel systems plant of Chongqing (China) have come on stream.
Six plants are under construction: two in India, one in Slovakia, one in
Morocco and two in the United States, including the Greer pilot plant (South
Carolina) for the Group's Industry 4.0 program.
A EUR100 million program was launched for the development of R&D capacities:
creation of a new advanced research center focused on new energies, due to open
in Brussels in mid-2019, a new development and testing center for fuel systems
in Wuhan (China) in 2019, and digitization and extension by 2020 of the global
R&D center for exterior body parts in Lyon.
In this context of robust investment, the Group generated free cash flow of
EUR185.8 million in 2017, i.e. 2.7% of consolidated sales.
Sound financial structure
Net debt amounted to EUR563 million at December 31, 2017, down by EUR237
million compared with December 31, 2016, after the payment of EUR73 million in
dividends and the buyback of treasury shares for a net amount of EUR42 million.
The Group's net debt now represents 32% of equity and 0.6x EBITDA.
As a reminder, on March 31, 2017 in accordance with the decision of the
European Commission, the Group finalized the disposal of the French exteriors
systems and the German front-end modules businesses acquired in 2016, at an
enterprise value of EUR200 million. Additionally, on June 30, 2017, Plastic
Omnium sold its truck composites business, which produced annual revenues of
about EUR200 million in France, Mexico and China.
Furthermore, on June 19, 2017, Compagnie Plastic Omnium placed a EUR500 million
bond issue with European investors (7-year bond with a 1.25% coupon, without
covenant or rating).
Acceleration of the innovation program
To step up its innovation strategy, the Group has created Plastic Omnium New
Energies - a subsidiary of Plastic Omnium Auto Inergy - dedicated to the
development of the energies of the future, in particular fuel cells and
In this regard, in December 2017, the Group completed the acquisition of two
high-tech companies for a total enterprise value of some EUR20 million:
- Swiss Hydrogen, a Swiss company based in Fribourg, specialized in the design
and production of solutions for the management and control of energy in fuel
cell systems dedicated to mobility (balance of plant);
- Optimum CPV, a Belgian company based in Zonhoven, specialized in the design
and production of tanks in filament composite for the storage of pressurized
With the set-up of the Israeli company EPO-CellTech in 2016 in the field of
fuel cells, and the Group becoming a member of the Hydrogen Council's steering
committee, Plastic Omnium has positioned itself as an electric propulsion
Plastic Omnium New Energies - an entity which is due to be reinforced in the
coming months - currently has over 130 engineers and annual research and
operating costs of around EUR20 million, in addition to the EUR50 million spent
on acquisitions in 2016 and 2017.
Moreover, in 2017, Plastic Omnium undertook to invest EUR20 million in the
Aster venture capital fund, specialized in energy transition and vehicles of
Dividend per share up 37% to EUR0.67
The Board of Directors will propose, at the Shareholders' Meeting of April 26,
2018, a dividend of EUR0.67 per share, an increase of 37% over the preceding
The dividend will be paid on May 4, 2018, after approval by the Shareholders'
In 2018, with an expected slight rise of around 2% in global automotive
production, the Group should see a further improvement in results.
For the 2017-2021 period, Plastic Omnium confirms its financial outlook
announced in December 2017:
- its automotive activities should continue to outperform global automotive
production by an average of around 5 points per year over the period,
reaching revenue of EUR10 billion in 2021 (including EUR1.7 billion from
- the Group's operating margin should continue to steadily increase throughout
- the Group will pursue its investment program of EUR2.5 billion over the
2017-2021 period while generating free cash flow of over EUR1 billion.
The Group is actively preparing for the upcoming changes in the automotive
industry, by investing in innovation, research and high-tech acquisitions.
Webcast presentation of the annual results
The presentation of the results, with simultaneous translation, will take place
on Thursday February 15, 2018 at 9:15 a.m. Paris time.
It will also be accessible by webcast on the website of Groupe Plastic Omnium
and by telephone to:
- France (FR): +33 1 70 71 01 59;
- France (EN): +33 1 72 72 74 03;
- United Kingdom: +44,207,194 3759;
- Germany: +49,692,222 2542;
- Spain: +34,911,140,099;
- United States: +1,844,286 0643.
More detailed financial information can be found on the website, at
April 24, 2018 - Revenue from first quarter 2018
April 26, 2018 - Shareholders' Meeting
July 20, 2018 - Results for the first half-year 2018
(1) Economic revenue corresponds to consolidated revenue, plus revenue from the
Group's joint ventures, consolidated at their percentage of ownership: BPO,
HBPO and YFPO for Plastic Omnium Automobile. The figure reflects the
operational and managerial realities of the Group.
(2) Consolidated revenue, in implementation of IFRS Standards 10-11-12, does
not include the share of joint ventures, which are consolidated using the
(3) The operating margin includes the share of the results of companies which
have been consolidated using the equity method, and the amortization of the
intangible assets acquired, before other operating income and expenses.
(4) EBITDA corresponds to the operating margin, which includes the share of the
results of associates and joint ventures before depreciation charges and
(5) Free cash flow corresponds to the operating cash flow, less tangible and
intangible investments net of disposals, taxes and net interest paid +/-
variation of the working capital requirements (cash surplus from
(6) Net financial debt includes all of the long-term borrowings, short-term
loans and bank overdrafts, less loans, marketable debt instruments and
other non-current financial assets, and cash and cash equivalents.
Status of financial statements with respect to the audit
As at the date of this release, the audit procedures for financial statements
have been completed and the Statutory Auditors' report has been issued.
This press release is published in French and in English. In case of a
discrepancy between these versions, the original version drafted in French