- Economic revenue: €4,062
million, up by 27.8% (+12.3% at constant scope and exchange
rates)
- Consolidated revenue: €3,455
million, up by 29.9% (+11.3% at constant scope and exchange
rates)
- Operating margin: €325 million
(9.4% of consolidated revenue), up by 21.5%
- Net profit - Group share: €210
million, up by 35.4%
- EBITDA: €469 million (13.6%
of consolidated revenue), up by 22.2%
- Free cash flow: €101 million
(2.9% of consolidated revenue)
- Net debt: €622 million,
representing 39% of equity and 0.7 x EBITDA
Regulatory News:
Laurent Burelle, Chairman and Chief Executive Officer of
Compagnie Plastic Omnium (Paris:POM), stated:
"Results for the first half of 2017 show high growth in
revenue1, above €4 billion. The rise in operating income reflects
the nonstop improvement in our industrial performance and high
workloads for plants. The streamlining of the exterior body parts
business acquired in 2016 is going ahead to plan. The Group's net
profit has risen by 35% and our financial structure continues to
strenghten.
Over the first half of 2017, we have pursued our long-term
development:
- our industrial investments have reached
€207 million (up by 19%) and gross R&D expenditures have risen
by 28% to €201 million;
- in the United States, we have
commissioned our largest plant - a pilot facility for the future
plant 4.0. This investment places us at the leading edge of new
methods of production combining robotics, algorithms and artificial
intelligence, which will subsequently be rolled out at all the
Group's plants and significantly improve our industrial
efficiency;
- as co-sponsor, we have invested in the
new fund of the venture capital company Aster Capital dedicated to
start-ups working on sustainable mobility, and we have extended our
Automotive Strategic Analysis Committee to include leading and
internationally recognized scientists. In doing so, we are
developing our capacity to identify new technologies in order to
enhance our innovative power.
We are fully engaged in the management of our growth and
expansion of our order backlog. Our revenue1 will be above €10
billion by 2021. At the same time, we are actively preparing the
Group's longer-term positioning with the vehicle of the
future."
Results for the first half of 2017: strong growth in revenue
and results
The Board of Directors of Compagnie Plastic Omnium convened on
July 20, 2017, and reviewed the audited consolidated financial
statements as at June 30, 2017.
in millions of
euros
First-half2016
First-half2017
% change Economic revenue1
3,179.5 4,062.2
+27.8% Consolidated revenue2
2,660.0 3,454.9
+29.9%
Operating margin3
267.4 325.0
+21.5%
in % of consolidated revenue
10.1%
9.4%
Net profit - Group share
155.3 210.3
+35.4%
EBITDA4
383.3 468.6 + 22.2%
in % of consolidated revenue
14.4%
13.6%
Investments 174
207 +19.0% Free cash flow5
92 101
+9.8%
As at12/31/2016
As at6/30/2017
%change
Net debt(6) 800 622 (178) Net debt to equity ratio 53% 39%
Net debt/EBITDA 1.0
0.7
Strong growth in the Automotive Division and outperformance
of 10 points over worldwide automotive production
Compagnie Plastic Omnium’s economic revenue1 amounted to
€4,062.2 million in first-half 2017, up by 27.8% and by 12.3% at
constant scope and exchange rates over the first-half 2016. The
increase was, respectively, 29.9% and 11.3% in consolidated
revenue, excluding joint ventures.
In millions of euros, by segment
First-half2016
First-half2017
% change
At constantscope andexchangerates
Automotive 2,992.8
3,894.2 +30.1%
+12.6% Environment 186.7
168.0 -10.0%
+7.4%
Economic revenue1
3,179.5 4,062.2
+27.8%
+12.3% Consolidated revenue2
2,660.0
3,454.9 +29.9%
+11.3%
In first-half 2017, Plastic Omnium's Automotive
revenue1 was €3,894.2 million, up by 30.1%. This
includes €492.1 million of revenue from exterior body parts, a
business acquired in July 2016. Revenue rose by 12.6% at constant
scope and exchange rates. Growth in automotive production was 2.8%
over the same period. Outperformance therefore stands at 10 points
over the first half-year. This is the result of:
- market share gains in North America and
China, supported by a major investment program and a strong
position in the SUV segment;
- greater diversification of our customer
portfolio, with increased penetration particularly due to Jaguar
Land Rover and Chinese national carmakers;
- the success of our innovative products,
in particular the pick-up in SCR emissions control systems for
diesel engines, whose contribution to revenue rose 57% in
first-half 2017, to €202 million.
The Environment division's business activity, after the
sale of peripheral operations in mid-2016, is now totally refocused
on products and services to improve waste management for local
authorities and industry. After second-half 2016 growth of 4.2%,
first-half 2017 growth was 7.4% at constant scope and exchange
rates.
By region, growth was driven by the performances in North
America, Asia and South America.
In millions of euros and as a % ofrevenue,
bygeographic region
First-half2016
First-half2017
% change
At constantscope andexchangerates
Europe/Africa 1,742.9 2,235.0
+28.2% +3.8% 55%
55%
North America 832.3 1,048.0 +25.9% +22.7%
26% 26%
South America 75.5 129.1 +70.9%
+29.9% 2% 3%
Asia
528.7 650.1 +23% +21.2% 17%
16%
Economic revenue1
3,179.5 4,062.2 +27.8% +12.3%
100% 100%
Consolidated revenue2
2,660.0 3,454.9
+29.9% +11.3%
Sharply higher results
The operating margin shows a rise of 21.5% and now stands at
€325 million, i.e. 9.4% of consolidated revenue.
It includes the dilutive effect of the exteriors systems
business acquired in late July 2016. On a pro forma basis,
combining these businesses at January 1, 2016, the operating margin
over the first-half 2016 would have been €284.9 million, or 8.9% of
consolidated revenue.
In the automotive business, operating margin was €314.3 million
for first-half 2017, or 9.6% of consolidated revenue, as
compared to €255.3 million for first-half 2016 (10.3% of
consolidated revenue) and €272.8 million pro forma (9% of
consolidated revenue pro forma). This significant increase stems
from manufacturing performance, which continues to improve, and
from rationalization of our bumper business acquired in late July,
which is proceeding according to plan: three plants were closed
down (one bumper plant in Brazil, two front-end module plants in
the United States) along with two paint lines in Germany. The
organizations have been completely merged. These restructuring
operations will continue in the second half-year.
As for the Environment business, operating margin in the
first-half 2017 was €10.6 million, or 6.3% of revenue, as compared
to 6.5% in first-half 2016.
In first-half 2017 Plastic Omnium recognized €23.5 million in
non-current expenses (vs. €33.2 million in first-half 2016):
consisting of €40.1 million in restructuring costs and a positive
€16.6 million recognized in CICE research tax credits for 2014,
2015 and 2016.
The Group's net income grew by 34.5% to €213.0 million. It
accounted for 6.2% of revenue.
The Group's share of net income came to €210.3 million, an
increase of 35.4%.
The financial structure has grown stronger
Group EBITDA was up by 22.2% to €468.6 million (13.6% of
consolidated revenue) and cash flow from operations was up by 19.6%
to €415 million (12.0% of consolidated revenue).
Committed to a sustained capex program of €2.5 billion over the
2017-2021 period, the Group invested €207 million in first-half
2017, i.e. 6.0% of consolidated revenue. The plant for exterior
body parts at San Luis Potosi (Mexico) began production. Four
plants will be launched in 2018: one in China, one in India and two
in the United States, including the Greer pilot plant (South
Carolina) for the Group's Industry 4.0 program.
The Group generated free cash flow of €101 million in first-half
2017, representing 2.9% of its revenue.
In first-half 2017, Plastic Omnium paid €73 million in dividends
and bought back €47 million of its own shares.
On March 31, 2017 in accordance with the decision of the
European Commission, the Group also finalized the sell-back of the
French operations of the exteriors systems acquired in 2016, at an
enterprise value of €200 million. Additionally, on June 30, 2017,
Plastic Omnium sold its truck composites business, which produced
annual revenues of about €200 million in France, Mexico and China.
This deal will be relutive as of second-half 2017.
Net financial debt totaled €622 million, down by €178 million
compared with December 31, 2016. It now represents 39% of equity
and 0.7x EBITDA.
Other highlights
On June 19, 2017, Compagnie Plastic Omnium carried out the
placement of a new bond issue of €500 million with European
investors. This bond issue, without covenants or rating, matures in
seven years and has a 1.25% coupon. It cushions the structure of
the Group's financing by lengthening the maturity of its debt and
by diversifying its sources.
Additionally, at their meeting of July 20, 2017 the Board of
Directors voted to cancel 1.5 million treasury shares as of August
14, 2017. After this cancellation, the percentage of control of
Burelle SA will rise from 57.01% to 57.57%.
Outlook
Automotive production for the full 2017 year is expected to grow
by 1.5% to 2%. On that basis, Plastic Omnium will show strong
revenue growth1, reaching €8 billion.
Earnings will show strong growth as well, with continued
improvement to the balance sheet.
Confident in its order book, market share gains and the success
of its innovative products, the Plastic Omnium Group will produce
revenues1 above €10 billion in 2021, improve its profitability and
generate significant free cash flow.
Webcast presentation of the half-year results
The presentation of half-year results, in French with a
simultaneous translation into English, will take place on Friday
July 21, 2017 at 8.30 a.m., Paris time.
It will also be accessible by webcast on the website of Plastic
Omnium and by telephone at:
- France: +33 (0)1 72 00 15 10
- United Kingdom: +44 203 043 2440
- Germany: +49 6922 2229 031
- Spain: +34 914 142 021
- United States: +1 646 722
4907
Access codes:
- French: 7985369#
- English: 42251158#
More detailed financial information can be found on the website,
at www.plasticomnium.com.
Calendar
September 14 to 24 – IAA Automobile Show, Frankfurt – Hall 5.1
stand A12(press days September 12 and 13)
October 24, 2017 – Business results for the 3rd quarter
2017
Glossary
- Economic revenue corresponds to
consolidated revenue plus revenue from the Group's joint ventures
at the percentage of their share in the Group: BPO, HBPO and YFPO
for Plastic Omnium Automotive. The figure reflects the operational
and managerial realities of the Group.
- Consolidated revenue, in accordance
with IFRS 10, 11 and 12, does not include the Company’s share of
the revenue of joint ventures which are accounted for by the equity
method.
- Operating margin is operating income
including the share of profit of entities accounted for by the
equity method and the amortization of acquired intangible assets
before other operating income and expenses.
- EBITDA corresponds to the operating
margin plus the share of profit of associates and joint ventures
before depreciation and operating provisions.
- Free cash flow corresponds to the
operating cash flow, less tangible and intangible investments net
of disposals, taxes and net interest paid +/- variation of the
working capital requirements (cash surplus from operations).
- Net debt includes all long-term
borrowings, short-term loans and bank overdrafts less loans,
marketable debt instruments and other non-current financial assets,
and cash and cash equivalents.
Status of financial statements with respect to the
audit
At the date of this release, financial statement auditing
procedures have been completed and the Statutory Auditors' report
has been issued on July 20, 2017.
This press release is published in French and in English. In
case of a discrepancy between these versions, the original version
drafted in French shall prevail.
Plastic Omnium is the world leader in automotive exterior
components and modules, automotive fuel systems, and waste
container solutions for local authorities and companies. The Group
and its joint ventures employ nearly 32,000 people working in 124
plants, 23 R&D centers and 31 countries worldwide working for
74 brands of automobile. Plastic Omnium is listed on Euronext
Paris, compartment A. It is eligible for the Deferred Settlement
Service (SRD) and is part of the SBF 120 and CAC Mid 60 indices
(ISIN code: FR0000124570).
1 to 6 Financial aggregates are defined on page 5 of the present
press release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170720006145/en/
Financial informationTel.: +33 (0)1 40 87 64 49Fax: +33 (0)1 40
87 96 62investor.relations@plasticomnium.com
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