lettER TO OUR SHAREHOLDERS
PERFORMANCE
Results and outlook
2016 annual results
2016, a record and structuring year
€312 million
net profit, group share
+21%
€6.9 billion
revenue
+16%
€558 million
operating margin
+19%
Distribution of revenue
by region
Business was buoyant in all geographical areas.
In Europe, business was particularly strong in 2016, driven by the opening in the UK of the Warrington-Liverpool plant for Jaguar Land Rover and by sales of SCR depollution systems for diesel vehicles (+50% for the year). Business in North America grew by 7.7% at constant scope and exchange rates, benefiting from major exposure on SUV models. In Asia, business increased by 22.9% at constant scope and exchange rates, driven by China where the Group continues to win market share, particularly with Chinese carmakers.
Change in economic revenue
in millions of euros
Strong growth in the activities of Plastic Omnium Automobile. Plastic Omnium Automobile’s revenue was €6,566.8 million. It increased by 17.3% and by 12.8% at constant scope and exchange rates, in a worldwide automotive production up by 4.8% in the year 2016, thus outperforming the market by 8.0 points.
Net profit – Group share
in millions of euros and as a percentage of consolidated revenue
Net profit, Group share was €312.1 million (or 5.3% of consolidated revenue), an increase of 20.8%.
Operating margin
in millions of euros and as a percentage of consolidated revenue
In 2016, operating margin increased by 18.7% to €557.8 million, or 9.5% of consolidated revenue. In spite of the dilutive effect of the acquired business, the automotive division benefited from a high utilization rate of its production capacities, from the operational excellence deployed with the 160 new launches, from strict control of costs and from the preliminary effects of the measures to turn around the acquired business.
€810 million
EBITDA
+17%
€241 million
free cash-flow
+19%
€0.49
dividend per share
+20%
Outlook
In 2017, the Group will record strong growth thanks to the full 12-month integration of the new expanded scope of business and to recurring outperformance from automotive production worldwide expected to grow by 1 to 2% in 2017.
In 2017, Plastic Omnium will pursue its strategy of profitable growth generating cash, and post a rise in its operating margin and net profit - Group share results.
Net debt
in millions of euros
Net debt was €800 million, including the acquisition of Faurecia’s Exterior Systems business at an enterprise value of €665 million. The Group’s net debt now represents 53% of equity capital and 1.0 x EBITDA.