Plastic Omnium - 2020 Universal Registration Document

COVID-19 Covid-19: accelerating change Responsiveness and agility underpinned Plastic Omnium’s response to managing the crisis and controlling its inherent risks. In fact, the Group has turned the crisis into an opportunity to reinvent itself by accelerating its transformation. Rapid emergency response Plastic Omnium reacted quickly to protect its employees’ health and uphold its fundamentals. The cost reduction and liquidity protection program has been beefed up, and Plastic Omnium is simultaneously adapting its manufacturing base for automotive production that will likely not recover to pre-crisis levels until 2024 or 2025. The benefit will be annual savings of €40 million by end 2022. Home working and furlough schemes have been developed. The Group has also implemented support measures: extra compensation, advance leave, flexible working, etc. Restarting production in total safety With a gradual restart tailored to each region and each manufacturer’s PGG F U VJ G )T Q WRoU | RNCP V U Y GTG CNN DCEM K P Q RGTC VKQ P Q P ,WPG 2020. Their three priorities were employee health, logistics chain reliability and product quality. The restart was governed by the “Safe Restart Playbook” program based on lessons learned from the successful mid- April restart in China. Plastic Omnium then responded to developments in the pandemic in real time, implementing a gradual easing protocol that was adapted each week to the health situation in each country. Transforming to shape the future During the crisis, Plastic Omnium has also reconsidered its organization. The OMEGA program is a response to this need to continuously improve its operations, industrial efficiency and agility. The program’s aim is to simplify processes, encourage cooperation between businesses and accelerate the digital transformation. Based around seven different project areas, OMEGA started with Indirect Purchasing and Product Development. It will drive forward a comprehensive transformation to reflect the automotive market’s new reality and ensure long-term growth. Main risks for Compagnie Plastic Omnium SE Operational risks PANDEMIC RIS K RIS K LIN K ED TO AUTOMOTI V E PROGRAMS RIS K LIN K ED TO THE Q UALIT Y O F PRODUCTS AND SER V ICES SOLD EN V IRONMENT, HEALTH AND SA F ET Y RIS K IT RIS K Strategic risks RIS K LIN K ED TO E X TERNAL GROWTH OPERATIONS Credit and counterparty risks CUSTOMER RIS K SUPPLIER RIS K Market risks RAW MATERIALS COST RIS K Legal risks RIS K LIN K ED TO COMPETITION LAW RIS K LIN K ED TO INTELLECTUAL PROPERT Y INTEGRATED REPORT Risk control: a key challenge PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 25