PLASTIC OMNIUM (EPA:POM) - Business in the first quarter of 2018: up 2.8%

Transparency directive : regulatory news

24/04/2018 07:30

Paris, April 24, 2018

                 Business(1) in the first quarter of 2018: up 2.8%
          Further improvement in results expected in first semester 2018

Compagnie Plastic Omnium's economic revenue(2) amounted to EUR1,942 million in
the first quarter of 2018, up 2.8% at constant perimeter and exchange rates.

The Automotive Division posted growth of 3.1%, while worldwide automotive
production was down 0.6% over the period.

"As expected, our business1 outperformed worldwide automotive production by
almost 4 points. The second quarter will see much stronger growth. Our results
will continue to improve in the first semester and throughout the year.

Meanwhile, we're stepping up our innovation program and technological
developments, geared towards clean and connected mobility."

Laurent Burelle, Chairman and Chief Executive Officer

In EURm, by business sector      Q1           Change   Change at
                          2017     2018              constant
                                                     scope &
                                                     exchange
                                                      rates

Automotive              1,957.1  1,863.7     -4.8%    +3.1%
Environment                82.2     78.4     -4.7%    -4.3%
Economic revenue(2)     2,039.4  1,942.1     -4.8%    +2.8%
Joint ventures            296.9    305.8     +3.0%    +5.0%
Consolidated revenue(3) 1,742.5  1,636.3     -6.1%    +2.5%

In EURm and % of revenue,
by region                      Q1           Change   Change at
                         2017     2018               constant
                                                     scope &
                                                     exchange
                                                      rates

Europe/Africa           1,126.4  1,118.3     -0.7%    +3.1%
                            55%      58%
North America             523.5    449.4    -14.2%    -0.3%
                            26%      23%
South America              62.4     54.1    -13.3%   +10.1%
                             3%       3%
Asia                      327.1    320.3     -2.1%    +5.4%
                            16%      16%
Economic revenue(2)     2,039.4  1,942.1     -4.8%    +2.8%
                           100%     100%
Joint ventures            296.9    305.8     +3.0%    +5.0%
Consolidated revenue(3) 1,742.5  1,636.3     -6.1%    +2.5%
                           100%     100%

Financial information Tel: +33 (0)140 876678 - Fax: +33 (0)140 879662
investor.relations@plasticomnium.com
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 and its joint ventures have 33,000
employees across 127 plants, 24 R&D centers and 31 countries worldwide, serving
80 automotive brands. 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).

Worldwide automotive production outperformed by almost 4 points

Compagnie Plastic Omnium's economic revenue(2) amounted to EUR1,942 million in
the first quarter of 2018, up 2.8% at constant perimeter and exchange rates.
This figure includes EUR109 million in negative currency effects and EUR44
million relating to the negative impact of changes in the consolidation
scope(4).

Consolidated revenue(3), excluding joint ventures, amounted to EUR1,636
million, up 2.5% at constant perimeter and exchange rates.

In the first quarter of 2018, Plastic Omnium's automotive revenue(2) amounted
to EUR1,864 million, up 3.1% at constant perimeter and exchange rates, compared
to a worldwide automotive production down 0.6% (23.4 million vehicles
manufactured worldwide), i.e. an outperformance of 3.7 points. Business in the
first quarter of 2018 is compared to a particularly strong first quarter in
2017 (up 16.8% at constant perimeter and exchange rates versus the first
quarter of 2016), which benefited from strong growth in worldwide automotive
production (up 5.9%) and a catch-up effect of Group activities in North
America.
Business(1) in Europe, which represents 55% of total automotive revenue(2),
increased by 3.3% at constant perimeter and exchange rates, compared to an
automotive production down 0.1%. This outperformance of 3.4 points is
especially the result of very strong business in France.
Business(1) in North America was stable in the first quarter of the year, with
automotive production down 2.7 points.
Business(1) in Asia, including China, increased by 5.8%, at constant scope and
exchange rates. In China, which contributes revenue(1) of EUR176 million, i.e.
9% of total revenue, business increased by 11.5% in the first quarter of 2018
at constant perimeter and exchange rates, compared to a 1.9% decline in
automotive production. This outperformance of 13.4 points is the result of
market share gains in our two businesses, and strong investment made in recent
years to develop the industrial footprint.

Major milestones in a profitable and independent growth strategy

- New orders

The first quarter of 2018 was marked by strong business activity:
- new orders:
  * a bumper and spoiler production contract for the Volkswagen CrossBlue SUV
    in the United States (Chattanooga plant),
  * contracts for the production of exterior body parts in China with General
    Motors, Skoda and a number of Chinese manufacturers (SAIC, BAIC, Zotye,
    GAC, BYD and FAW),
  * two contracts renewed with BMW in the United Kingdom for the assembly of
    front-end modules for the Mini BEV and Mini Clubman;
  * two contracts for the production of fuel systems for Ford in Thailand,
    South Africa and Argentina and for Opel in Spain,
  * the renewal of a contract for fuel systems of PSA models 308, DS4 and C5 in
    France;

- confirmation of the success of our portfolio of innovative products:
  * the first composite tailgate order (with integrated spoiler) placed by the
    Volkswagen group for the Mosel Seat plant in Germany,
  * three orders for pressurized tanks for plug-in hybrid electric vehicles
    (PHEV) for FCA in the United States, as well as Geely and GAC in China,
    thereby confirming the trend towards electric hybrid,
  * a new contract for the next generation of SCR systems intended for two PSA
    group platforms and a SCR systems contract for Toyota in Thailand;
  * news clients, including Proton/Geely in Malaysia and Mitsubishi in Japan,
    bringing the number of automotive brands the Group works with to 80.

- New plants

In the first quarter of 2018, the fuel systems production site in Hansalpur,
India was inaugurated. This plant is the Group's fourth in India, and will
provide fuel systems for Suzuki's Swift and Baleno models.

Seven plants are currently under construction: one in India, one in Slovakia,
one in Morocco, two in China, and two in the United States, including the Greer
pilot plant (South Carolina) for the Group's Industry 4.0 program.

- Acceleration of R&D

By stepping up its innovation strategy, and in order to meet the challenges of
the carbon-free car, the Group created "Plastic Omnium New Energies", a
subsidiary of Plastic Omnium Auto Inergy dedicated to the development of the
energies of the future, specifically fuel cells and hydrogen propulsion. Its
development was stepped up following the acquisition of two companies with high
technological content in December 2017: Swiss Hydrogen, a Swiss company
specializing in the design and production of energy management and control
solutions for fuel cell systems ("balance of plant"), and Optimum CPV, a
Belgian company specializing in the design and production of tanks in filament
composite for the storage of pressurized hydrogen.
With the launch of the construction of Delta-Deltatech, a new advanced research
center dedicated to new energies based in Brussels, Plastic Omnium is aiming to
position itself as a major player in automotive storage and propulsion
systems.

In connected cars, the acquisition of an equity stake in February 2018 in
Finnish plastronics company Tactotek strengthened the Group's capacity to
integrate and protect radars and sensors, and confirms Plastic Omnium as a
leader of intelligent exterior systems and modules.

- Projects of disposal of Plastic Omnium Environment and of strengthening of
  the front-end module business

At the end of 2017, Plastic Omnium launched the project of disposal of its
Environment division, which is currently ongoing. The division posted revenue
of EUR78.4 million in the first quarter of 2018.

On March 1, 2018, the Group announced its plan to increase its equity stake in
HBPO to 66.66%, the world leader in front-end modules, by purchasing an
additional 33.33% shareholding from the German automotive supplier Mahle. This
acquisition for an enterprise value of EUR350 million is currently being
examined by competition authorities. In the first quarter of 2018, HBPO
contributed 33.33% or EUR180 million to Plastic Omnium's economic revenue.

HBPO's size, with estimated revenue of EUR2.1 billion in 2018, technological
expertise, and some 21 customers in 13 countries, enables Plastic Omnium to
step up its development in the modularization and design of the smart car
bodies of the future, faced with the technological challenges presented by
autonomous and connected cars.

If these planned disposal and acquisition are carried out this year, Plastic
Omnium's 2018 pro-forma economic revenue will amount to over EUR9 billion.

Further improvement in results expected in the first semester

In the second quarter of 2018, worldwide automotive production is expected to
grow by more than 5%. On this basis, Plastic Omnium's business(1), at constant
perimeter and exchange rates, will grow even further.

Backed by strong business levels, its order book, new plant openings and the
streamlining of its business portfolio, Plastic Omnium will post further
improvement in its results in the first semester 2018.

Calendar

April 26, 2018       Shareholders' Meeting - Pavillon Dauphine, Paris, 5.00 pm

May 4, 2018      Dividend payment date, set at EUR0.67
July 20, 2018        Half-year results for 2018

(1). Economic revenue at constant perimeter and exchange rates.
(2). 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.
(3). Consolidated revenue, pursuant to IFRS Standards 10-11-12, does not
include the share of joint ventures, which are consolidated using the equity
method.
(4). Perimeter effect: EUR54 million from the disposal of truck businesses
in 2017, and - EUR9 million from the acquisition in 2017 of the Changchun
plant in China.

Application of IFRS 15
Pursuant to IFRS 15 on January 1, 2018  set out in the 2017 consolidated
financial statements (Section 1.1. Accounting policies, accounting rules and
principles - available at www.plasticomnium.com), revenue from operations
generated during the project phase (tooling and development) under automotive
contracts is now recognized at the start of the production life.

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PLASTIC OMNIUM (EPA:POM) - Business in the first quarter of 2018: up 2.8%

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