Plastic Omnium - 2018 Registration Document

1 PRESENTATION OF PLASTIC OMNIUM AND ITS BUSINESSES Business and strategy www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 28 Compagnie Plastic Omnium stock buyback and capital reduction In 2018, Compagnie Plastic Omnium bought 2,110,000 of its own shares for a total amount of €77.1 million (i.e. at an average purchase price of €36.40). At its meeting of July 19, 2018, the Board of Directors voted to cancel 1,110,613 treasury shares as of July 26, 2018. After this cancellation, Burelle SA’s percentage of control increased from 57.57% to 58%. Subsequently, at its meeting of October 30, 2018, the Board of Directors voted to cancel 1,300,000 treasury shares as of November 8, 2018. After this cancellation, Burelle SA’s percentage of control increased from 58% to 58.51%. As at 31 December 2018, Compagnie Plastic Omnium held 1.54% of its own shares. BUSINESS AND STRATEGY 1.5 Compagnie Plastic Omnium is a manufacturing group and world leader in intelligent exterior systems, clean energy systems and automotive modules. The Group and its joint ventures employ more than 32,000 people in 124 plants, 24 R&D centers and 26 countries worldwide, supplying 83 automotive brands. It is a global business group with a presence on 4 continents (for a distribution of revenue by geographic region, see page 130 of the notes to the consolidated financial statements). German carmakers represent 38% of economic revenue in 2018, ahead of Asian carmakers (24%), American carmakers (22%) and French carmakers (15%). Following the takeover of HBPO on July 1, 2018, the world leader in automotive front-end modules, and the sale of its Environment Division on December 18, 2018, Plastic Omnium established itself as an automotive pure player organized around two business lines with different business models: Plastic Omnium Industries, dedicated to the production of Intelligent ● Exterior Systems and Clean Energy Systems for motor vehicles, with significant investment and long cycles; Plastic Omnium Modules, dedicated to the design and assembly of ● complex modules ( HBPO ), with low levels of capital employed. The Plastic Omnium Group is a leading player in each of its 3 businesses: Intelligent Exterior Systems, Clean Energy Systems and HBPO. The reference market for the Group’s three businesses is the worldwide automotive production, which produced 91.3 million vehicles in 2018, representing a decline of 1.0% compared to 2017 when 92.3 million vehicles were produced (source: IHS January 2019). financial statements). Plastic Omnium Industries (including its joint ventures) employs around 30,000 people in 99 plants, 23 R&D centers and 22 countries worldwide. Plastic Omnium Industries, which represents 83% of 2018 economic revenue – or €6,833.6 million – and 87% of 2018 consolidated revenue – or €6,287.8 million – (see page 128 of the notes to the consolidated The Intelligent Exterior Systems business is the world leader in a broad range of complex exterior assemblies (1) , manufactured mainly from injected polypropylene and composite materials. This business designs and produces a wide range of parts: bumpers and energy absorption systems, tailgates, spoilers, bumpers and floor modules. As a reminder, the Intelligent Exterior Systems business was strengthened in 2016 with the acquisition of Faurecia’s Exterior Systems business. This transaction reinforced the Group’s leadership position in the market for exterior components and modules. The Intelligent Exterior Systems business produced more than 29 million painted bumpers in 2018, representing a global market share of 16%. This market share was 8% in 2010. It benefited from the acquisition of Faurecia’s Exterior Systems business in 2016 and is rising organically due to the expansion of this business in high growth regions, especially China, where Intelligent Exterior Systems has a market share of 26% in 2018. Its 3 main competitors are Magna, a Canadian group with 7% market share, Motherson-SMP, an Indian group with 4% and Flex-N-Gate, a US group with 3%. 36% of global bumper production remains in the hands of the carmakers themselves. Active in the decorative component segment, Intelligent Exterior Systems offers customized, high value-added, multi-material solutions designed in line with the growing requirement for systems that integrate both functionality and safety performance, making vehicles lighter and reducing carbon emissions. Additionally, backed by expertise in the integration of functions and unique performance in the electromagnetic transparency of plastics, Plastic Omnium is contributing to the development of tomorrow’s smart cars. Its exterior parts will include numerous radar and other sensors, with ever-improving design and protection. In-house analysis using IHS data. (1)