Plastic Omnium - 2020 Universal Registration Document

PRESENTATION OF PLASTIC OMNIUM AND ITS BUSINESSES Significant events PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 55 Technologies, specializing in fuel cell stacks, and the acquisition of ElringKlinger’s subsidiary in Austria specializing in integrated hydrogen systems. An industrialized and competitive offer across the entire value chain: ● hydrogen vessels, fuel cell stacks and integrated hydrogen systems The hydrogen value chain comprises three segments: hydrogen vessels, fuel cell stacks and integrated hydrogen systems. Plastic Omnium will be in a position to sell each segment individually or as an ensemble depending on customers’ preferences. Plastic Omnium aims to be the leader in each of these segments by developing an offer that is technologically and commercially competitive. For 2030, the Group is targeting 25% of the hydrogen vessel market, between 10% and 15% of the fuel cell stack business, and 10% of the integrated hydrogen system segment. The competitiveness of Plastic Omnium’s offer will depend on reducing the technology costs in each of the three segments: the Group aims to cut hydrogen vessel costs by 30% by 2030; and ● to divide by five the cost for fuel cell stack and integrated hydrogen ● system within the same timeframe. These significant cost reductions will be achieved by automating the industrial processes, leveraging the volume effect and improving on both design and materials, including lowering the carbon fiber and precious metal content. By 2030, the total cost of the hydrogen system for a passenger car will be around €6,000 to €8,000, bringing this technology within reach of the mass market. 2030 ambition: €3 billion revenue in a market of at least two million ● vehicles The hydrogen mobility market is based on exponential volume growth: from 200,000 hydrogen vehicles in 2025, there will be more than 2 million by 2030. The bus, truck and utility vehicle market will develop first, followed by the passenger car segment. There will be 500,000 and 1.5 million vehicles respectively for each category by 2030. In terms of the geographic spread, Asia will be the foremost market in 2030 with 75% of hydrogen vehicles’ production, followed by Europe and North America. Plastic Omnium is aiming for revenue of around €300 million in this market by 2025 and €3 billion by 2030. To achieve these targets, the Group will be investing around €100 million a year over the coming years, directly or through its EKPO Fuel Cell Technologies joint venture, to build industrial capacity in all regions with around 15 production lines installed by 2030 at existing or new plants. The Group also intends to create a major Hydrogen Hub at the -Alphatech R&D center in Compiègne, France. Around 100 engineers will bolster the existing teams of 500 people, and close to €30 million will be invested in laboratory and research equipment over the coming two to three years. An ambitious corporate social responsibility policy to drive performance Creation of a Covid-19 ACT FOR ALL TM solidarity fund ● In April, Plastic Omnium created the Covid-19 ACT FOR ALL TM solidarity fund, to enable each of its sites, based on the situation on the ground locally, to help and support populations impacted by the coronavirus health crisis. With a budget of €1 million, it is intended to support recognized local associations. Priority has been given to helping medical personnel and vulnerable people. In total, 124 causes in 22 countries have been supported to date. Award received for the change in the percentage of women in teams ● Convinced that diversity in business leads to success and high performance, Plastic Omnium set the target of having 25% of management roles held by women by 2025. Training and awareness-raising initiatives for senior managers and the creation of the Women@PO network, designed to promote gender diversity and women’s careers within the Group, support this commitment. The Group currently has 47% women on the Board of Directors, 27% on the Executive Committee and 18% women managers. This policy was recognized in March 2020 by the Wave (Women and Vehicles in Europe) association, which awarded Plastic Omnium the Trophy for Best Progress in France between 2017-2020 for the percentage of women in the Executive Committee, the TOP 100 and the overall workforce. In June 2020, Plastic Omnium was also awarded first place in the 2019 Awards for the number of women in governance bodies in SBF 120 automotive industry companies in the ranking established by the Secretary of State responsible for Gender Equality (25 th place in the overall rankings, up 20 places compared to the 2018 ranking). Carbon neutrality target ● Plastic Omnium’s objective is to reach carbon neutrality in 2050. The Group is currently working on a methodology and budget related to a medium-term carbon neutrality target on scopes 1, 2 and 3 (upstream). The organization was thus strengthened with the arrival, on January 1, 2021, of David Meneses as Executive Vice President Sustainability and member of the Executive Committee of Compagnie Plastic Omnium SE. Plastic Omnium in 20th place among patent filers at INPI in 2019 and 7th place in the automotive industry INPI (The French National Institute of Industrial Property) published its annual ranking of the 50 leading patent filers, with Plastic Omnium in 20 th place in the overall ranking, moving up eight places compared to the 2018 ranking. In the automotive industry sector, Plastic Omnium ranked 7 th among the leading patent filers. These awards attest to the Group’s proactive innovation strategy to develop the clean and connected car of tomorrow, capitalizing on its 25 global R&D centers located as close as possible to its 93 customers. The Company thus recently signed strategic partnerships for body parts connectivity and approved hydrogen vessels, winning the first contracts in this area and confirming Plastic Omnium as a major player in the energy transition. 34% reduction of the dividend to €0.49 Aware of its responsibilities to all of its stakeholders, the Board of Directors of Compagnie Plastic Omnium SE met by conference call on March 31, 2020 and unanimously decided to reduce the proposed dividend for 2019 by 34% to €0.49 per share, versus €0.74 per share as initially proposed. This was approved at the Compagnie Plastic Omnium SE Shareholders’ Meeting, held in camera on April 23, 2020.