Plastic Omnium - 2018 Registration Document

3 STATEMENT OF NON-FINANCIAL PERFORMANCE CSR at the heart of our strategy www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 90 INNOVATION THROUGH PASSION 3.1.2 Solutions for clean mobility When it celebrated its 70 th  anniversary in 2017, Plastic Omnium chose “heritage as a legacy” as the common theme of the celebrations: Plastic Omnium’s ability to continually reinvent its solutions and anticipate changes in its markets has always been one of the Company’s major assets, with innovation being one of the "5i", the cultural pillars of the Company. The current global environment is leading to a profound transformation of the automotive world. The entire sector must make revolutionary changes and the Group’s significant ability to innovate will be a determining factor in it remaining the leader in its markets in the long term period. The Group’s priorities in terms of innovation are environmental sustainability, autonomous cars/car sharing and industrial performance. This is reflected in more than 3,725 patents in the portfolio including 117 filed in 2018, and an investment program totaling 6% of revenue over the 2019-2021. Four research hubs, 24 development centers and more than 3,000 engineers take part in researching and developing innovations: Σ -Sigmatech in Lyon, France, the R&D center specializing in external ● body parts and composite materials, whose capacity has been expanded to support the Group’s ambitions and accommodate new skills: mechatronics, virtual reality and robotized tools; α -Alphatech à Compiègne, France, the global Research and ● Development center specializing in fuel systems and emission controls as well as new energy storage solutions; Δ -Deltatech for new energies and, in particular, hydrogen will be ● opened in 2019 in Brussels, Belgium; ω -Omegatech in Wuhan, China, the fuel systems test and development ● center for Asia, will open in 2019, focusing on hydrogen vehicles; I-Itech, the R&D center specializing in information systems in Nanterre, ● France. The Group’s global innovation strategy, driven by the Scientific Department, has shifted towards open innovation. Identifying ideas and projects internally is a major area of focus that requires the support of specific skills or techniques from specialists. As previously mentioned, the Company is extending its network in order to develop innovation: with tech start-ups through the venture capital fund, Aster, with major universities such as MIT in the United States, DTU in Denmark and Technion in Israel or by acquiring complementary companies such as Swiss Hydrogen and Optimum CPV. A partnership with Brose, a German equipment manufacturer, which was agreed at the end of 2018 will allow the Group to jointly develop an innovative project for car doors. Plastic Omnium will contribute its technological expertise to the concept and design of body part systems and crash testing, and Brose will provide innovative solutions in the area of mechatronics and door systems. In January 2019, the Plastic Omnium Group established a partnership with Hella, a German automotive supplier, leader in the development and production of lighting systems and electronic components. The collaboration aims to develop new concepts incorporating innovative technologies in lighting and intelligent front and rear body systems. The dynamism shown by Plastic Omnium regarding innovation is illustrated with the publication in 2018 of its first dedicated report, “Innovation and Audacity”. This publication coincides with the launch, in the fourth quarter, of the " Innovation Awards by Plastic Omnium" , an internal competition open to all Group employees to develop a continuous culture of innovation at all levels and to give everyone the opportunity to propose their ideas and be valued. Projects were submitted in three categories: products, operating excellence and open innovation for projects developed in partnership with laboratories, start-ups or universities. The competition winners will receive awards at a ceremony, chaired by Mr. Laurent Burelle. With this strong emphasis on innovation, Plastic Omnium is consolidating its current leadership position in its markets and strengthening its long-term competitiveness.