Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Comments on the financial year and outlook PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 187 NET RESULT GROUP SHARE: -€251 MILLION AFTER -€255 MILLION OF ASSET IMPAIRMENT CHARGES The Group recorded €334 million of non-recurring expenses in 2020. These included €255 million of impairment charges recorded over the year, due to the slump in volumes caused by the Covid-19 pandemic and the assumption of a slow recovery in worldwide automotive production, which in the medium term will remain significantly below pre-crisis forecasts. Net financial expense amounted to €69 million in 2020 (1.0% of consolidated revenue) versus €78 million in 2019, as a result of a lower average cost of debt. In 2020, the Group recorded tax income of €31 million versus an expense of €90 million in 2019, mainly because of the impact of deferred taxes. As a result, the Group released a net result group share of -€251 million compared to €258 million in 2019. In the second half of the year, the Group generated a net result group share of €152 million (3.7% of revenue) compared to €103 million in the second half of 2019 (2.4% of revenue). POSITIVE FREE CASH GENERATION IN 2020 AS A WHOLE EBITDA totaled €648 million in 2020 (9.2% of consolidated revenue) versus €1,005 million (11.8% of consolidated revenue) in 2019. In the second half of the year, EBITDA amounted to €477 million (11.6% of revenue) as opposed to €494 million in the second half of 2019 (11.7% of revenue) and €171 million in the first half of 2020 (5.8% of revenue). Investments totaled €374 million or 5.3% of consolidated revenue (€512 million or 6.0% of consolidated revenue in 2019), a reduction of €138 million (-27%). After an extensive capital expenditure program in recent years, the Group’s current installed capacity is sufficient to support its future growth. As a result, investments will equal less than 6% of revenue in the coming years, even as the Group pursues its large-scale innovation program. The working capital requirement (WCR) fell by €45 million year-on-year. In the first half of 2020, it deteriorated by €415 million due to the slump in business levels in Europe and North America in the second quarter. In the second half of the year, the WCR improved by €370 million relative to the first half as business levels recovered. Inventories and overdue receivables were reduced by €82 million ● through strict control. Sales of receivables amounted to €327 million at December 31, 2020, ● up €107 million compared with June 30, 2020 (€220 million) and similar to the end-2019 figure (€315 million). The difference between trade payables and trade receivables net of ● sales of receivables amounted to €557 million as opposed to €699 million at December 31, 2019 (€229 million at June 30, 2020). In 2020, the Group generated free cash-flow of €34 million, equal to 0.5% of consolidated revenue. After an outflow of €572 million in the first half of the year, Plastic Omnium achieved positive free cash-flow of €606 million in the second half. In 2019, the Group’s free cash-flow totaled €347 million, including €129 million from the disposal of non-industrial real-estate assets to Sofiparc. Excluding that disposal, it amounted to €218 million. SOLID FINANCIAL POSITION At December 31, 2020, net debt totaled €807 million, quite similar to the end-2019 figure of €739 million. On May 29, 2020, the Group repaid €500 million bonds as expected. During the year, it also obtained €560 million of new credit facilities from its banking partners. In 2020, Compagnie Plastic Omnium SE paid €71 million of dividends with respect to 2019 (dividend of €0.49 per share, down 34% from the €0.74 dividend paid in the previous year and initially proposed with respect to 2019). At the end of 2020, the Group’s net debt represented 41% of equity and 1.2 times 2020 EBITDA. It equaled 0.8 times annualized EBITDA for the second half of 2020. At December 31, 2020, the Group had €2.6 billion of liquidity, up €200 million compared with December 31, 2019, including: €730 million of available cash (€1.2 billion at December 31, 2019); ● €1.87 billion of confirmed, undrawn credit facilities, with an average ● maturity of 4.4 years and without any covenants (€1.2 billion at December 31, 2019 with an average maturity of 3.6 years). INVESTMENTS 5.1.2 After an extensive capital expenditure program in recent years, the Group’s current installed capacity is sufficient to support its future growth. As a result, investments will equal less than 6% of revenue in the coming years, even as the Group pursues its large-scale innovation program.