Plastic Omnium - 2018 Registration Document

1 PRESENTATION OF PLASTIC OMNIUM AND ITS BUSINESSES Research and Development (R&D) www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 30 RESEARCH AND DEVELOPMENT (R&D) 1.6 An integral part of the Group’s long-term strategy, innovation supports Compagnie Plastic Omnium’s performance and its reputation as a leader in automotive equipment. The manufacturing requirements of the vehicles of tomorrow will be driven by factors such as tighter global regulations, new environmental standards, the emergence of “smart cities” and new ways of using data in connected cars. Whether they concern safety, the environment or technological evolution, new requirements will encourage the sustained use of light and more complex materials. In 2018, Compagnie Plastic Omnium devoted around €418 million to R&D, or 5.8% of its consolidated revenue. The Group boasts a global network of 24 centers, served by close to 3,000 engineers who are dedicated to finding innovative solutions that meet the strictest environmental standards. As a result of this proactive focus on R&D, the Group manages a portfolio of more than 3,725 patents, including 117 filed in 2018. In this way, Plastic Omnium produces the vital resources required to strengthen its capacity for innovation, in order to respond to the pace of technological change towards a connected, autonomous and electrified. In connected and autonomous cars, Plastic Omnium is positioned as a connectivity integrator, by growing its capacity to innovate in complex systems that can integrate radars and sensors. The technological expertise of HBPO will also enable Plastic Omnium to accelerate its growth in smart and modular exteriors, which will profoundly change the design and esthetic of the cars of the future. In low-carbon cars, Plastic Omnium is positioning itself as a player in the energy-storage segment and is developing specific solutions for plug-in hybrid vehicles (PHEVs) as well as for vehicles with turbocharged combustion engines. At the same time, the Group is committed to electrification to become a key player in hydrogen propulsion and fuel-cell technologies. STRICTER ENVIRONMENTAL REGULATIONS BUILDING LIGHTER VEHICLES To reduce vehicle mass, and thus reduce their CO 2 emissions levels, Plastic Omnium is developing and producing body parts and modules out of plastic. Its plastic parts and modules are 30% lighter on average than metal and boast excellent mechanical performance as well as high crashworthiness. Making lighter parts is especially important for hybrid and electric vehicles in that they offset battery weight while optimizing vehicle range. At the same time, Plastic Omnium’s engineers have offered carmakers passive and active aerodynamic optimization solutions, enabling an additional reduction in carbon emissions. The technologies developed by Plastic Omnium can generate savings of 10 g/km of CO 2 or a 100 km extension in range for electric vehicles. THE ENERGY MIX REVOLUTION represent close to 45% of cars on the road (as compared with 10% in 2018). In addition to these two major ongoing innovation areas, Plastic Omnium is developing alternative energy solutions such as hydrogen storage and fuel cells. Plastic Omnium is the leader in both traditional (gasoline or diesel) and hybrid energy storage systems. While the traditional systems still accounted for most vehicles in 2018, by 2030 hybrid engines will AN INCREASINGLY CONNECTED WORLD The market for connected cars continues to grow. According to a study by PWC (1) , this market will quadruple between 2015 and 2020, to €115 billion in revenue, primarily benefiting 2 areas: safety (€47 billion) and driver assistance (€35 billion). Plastic Omnium’s growth strategy is in line with these changes. Currently, Plastic Omnium bumpers include up to 50 high-tech components to augment human senses and make driving simpler and safer. With its expertise in integration of functions and unique performance in the electromagnetic transparency of plastics, Plastic Omnium is contributing to the development of the tomorrow’s smart cars. Its exterior parts will include numerous radar and other sensors, with ever-improving design and protection. SOLUTIONS FOR SUSTAINABLE MOBILITY To respond to automotive manufacturers’ needs, Plastic Omnium has developed innovative products: an increasingly-smart bumpers with: ● radar integration: the smart bumper developed by Plastic Omnium ● optimally integrates radar. Radar is an integral part of the bumper and perform at their best thanks to plastic materials that are permeable to magnetic waves, shock detection and absorption system: thanks to a patented ● engineering approach, Plastic Omnium’s bumpers offer a shock-absorption module that incorporates multiple functions, from the integration of innovative detection systems to improved impact management. It also includes an active aerodynamic system, which reduces carbon emissions by 2 g/km. This new module alone replaces seven separate pieces: it is lighter, contributing to the reduction in carbon emissions (5 kg lighter, for a reduction of 0.5 g/km in carbon emissions), Source: Strategy Study & PWC’s “Connected Body Report 2016”. (1)