22/02/2024 07:00 |
Présentation des Résultats annuels 2023 (EN) |
INFORMATION REGLEMENTEE
FY 2023 RESULTS
FEBRUARY 22, 2024 EXECUTIVE SUMMARY Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 2 Executive summary 2023 in-line with our operational strategic priorities Historical businesses Consolidating from strength to strength the ambition in Hydrogen and accelerating industrial development Main achievements Significant improvement Additional initiatives in first year of Lighting to carbon neutrality roadmap F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 3 Executive summary 2023, year of excellent execution Strong revenue growth Solid order book Financial performance reflecting customers’ trust above adjusted targets +20.3% vs. 2022 equivalent to Operating margin 2 years of revenue of €395m +13.4% in 2023 of organic growth Free Cash Flow +3.7pts of €227m outperformance vs. market* * Source: S&P Global Mobility automotive production published in February 2024 - [0;3.5t PC + LCV] F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 4 For the first time, revenue exceeds €10bn Up +38% since 2018, of which 2/3 is organic growth… …while automotive production is down - 4% 11.4 9.2 9.5 8.2 8.0 7.7 91.2 87.6 85.9 79.8 71.6 74.2 2018 2019 2020 2021 2022 2023 Economic revenue (in €bn) Automotive production* (in millions of vehicles) * Source: S&P Global Mobility automotive production published in February 2024 - [0;3.5t PC + LCV] F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 5 Outperforming the market by +3.7pts FY 2023 vs. FY 2022 TOTAL EUROPE NORTH AMERICA CHINA ASIA (EXCL. CHINA) % of Plastic Omnium 2023 revenue 100% 51% 28% 9% 8% Automotive +9.7% +12.2% +9.9% +10.2% +8.6% production* Plastic Omnium LFL** +13.4% +16.4% +10.8% +0.5% +16.1% PERFORMANCE +3.7pts +4.2pts +0.9pt -9.7pts +7.5pts vs. market Strong growth Performance in-line Market growth mainly Excellent performance outperforming with the market driven by EV vehicles vs. market production the market mainly despite the headwind and local players. mostly driven driven by IES and of the UAW strike JV YFPO in-line by South Korea Modules with market; and India Modules and CES underperformed * Source: S&P Global Mobility automotive production published in February 2024 by source plant region - [0;3.5t PC + LCV] ** Economic revenue at constant scope and foreign exchange differences F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 6 BUSINESS AND STRATEGIC HIGHLIGHTS Laurent Favre Chief Executive Officer Félicie Burelle Managing Director F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 7 Plastic Omnium well-positioned to address market evolution Automotive production market * Plastic Omnium product portfolio In millions of vehicles 3 divisions agnostic to powertrain evolution 94 88 IES 12% 45% >75% Lighting 21% of revenue Modules ZEV** Hybrid 31% Expanded range of powertrain solutions 67% Fuel Systems Battery packs Hydrogen systems ICE (CES) (e-Power) (New Energies) 24% A complete range of energy management solutions 2023 2030 *Source: S&P global Powertrain forecast January 2024 – PC+LCV [0-3,5T] **Zero-Emission Vehicles (BEV+FCEV) F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 8 Robust order intake reflecting customers’ trust Strengthening our geographical footprint and powertrain diversification Intelligent Exterior Systems Mega • Increasing tailgate activity: significant awards for major deals European and American OEMs Lighting • Solid order book of €1.6bn for the first year of integration, reflecting customers’ trust 2020 2021 2022 2023 Modules • More balanced geographical footprint: c.80% of order % Order book % Order book intake in Americas and Asia for ZEV* in Americas & Asia Clean Energy Systems • Order intake > revenue in 2023 c.55% c.60% New Energies • Heavy and commercial mobility >90% of the order intake * Zero-Emission Vehicles (BEV+FCEV) F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 9 Diversifying our customer base In-line with market evolution 2023 Next steps Increasing business with EV players 15% BEV in total revenue to diversify our customer portfolio New comers Mass market & Chinese OEMs 33% Award January 2024 24% Major US EV Player Plastic tailgate Premium 43% Premium clients stand for c.40% Premium customers will remain of revenue a solid part of our portfolio Accelerating our diversification Implementation of capacities for in heavy and commercial mobility, hydrogen mobility through hydrogen F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 10 164 flawless launches in 2023 across all divisions Powertrain 26 NORTH AMERICA EUROPE 21 BY Exterior BUSINESS Systems CHINA 99 49 70 & Mix powertrains REST OF ASIA 15 THE WORLD (excl. China) BY Electric 60 4 20 POWERTRAIN F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 11 Evolution of segment information Aligned with the strategic roadmap and the product portfolio 2022 2023 PLASTIC OMNIUM MODULES MODULES MODULES INTELLIGENT EXTERIOR SYSTEMS (IES) With: EXTERIOR SYSTEMS LIGHTING Plastic Omnium’s PLASTIC software house OMNIUM INDUSTRIES CLEAN ENERGY Incl. SYSTEMS (CES) e-Power POWERTRAIN NEW ENERGIES F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 12 Unique offer of fully integrated exterior solutions Increase our content per vehicle through cross-divisions synergies Plastic Omnium is offering a unique technological offer: fully integrated exterior systems through the combination of Intelligent Exterior Systems, Lighting and Modules First awards Next steps • Illuminated panels • Smart Tailgates with higher • Extended scope: to enhance (exterior part with integrated lighting) added value, smart, lightweight, on-boarded intelligence, boost distinctive and adaptable to vehicle efficiency and improve manufacturers’ requirements manufacturing competitiveness F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 13 Success of the first year for Lighting Strong order intake and significant reduction in cost base Operational efficiency Solid order book of €1.6bn in 2023 in 2023 Innovation Award at CES 2024 REDUCTION in scrap BMW – MINI Cooper Electric Dynamic interior dashboard projection OPTIMIZATION of sites Diversified product portfolio -30% inventories • Head & rear lamps • Modules / electronics -20% labor costs • Bodyshells (bumpers with integrated lighting) F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 14 Next steps for Lighting Key priorities to improve growth and profitability Operational priorities Medium-term outlook 2024-2025 2026 and beyond • Revenue growth confirmed by current • Increase order intake with current order intake customers • More diversified customer portfolio and • Diversify customer base more balanced geographical footprint • Reduce break-even point • Profitability in-line with the Group’s to adapt to lower volumes operating margin rate • Accelerate vertical integration to • Increase content per vehicle through internalize electronic production extended value chain F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 15 Moving forward with priorities for Modules Improving profitability through operational excellence 2023 Operational priorities 2024-2025 • Strong performance in H1 2023 • Better adaptation to market environment, - volumes increasing sharply, particularly in Europe notably in Europe • Operating margin in H2 2023 • Increase customer and geographical diversification - lower volumes (stop&go and delays in BEV) - launches of plants, with positive effects in 2024 • Accelerating diversification in 2023 EUROPE NORTH ASIA AMERICA Award Front-end First & Cockpit New plant – Austin, Texas modules • Contribute to integrated offer modules Fast launch in only 9 months assembled through high-end solutions to enhance vehicle assembly Q1 Q2 Q3 Q4 and global efficiency F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 16 Complete range of energy management systems For all types of powertrains: ICE, hybrid, battery and hydrogen electric vehicles Clean Energy Systems (including e-Power) New Energies INTERNAL COMBUSTION ENGINE ELECTRIC VEHICLE HYDROGEN FUEL SYSTEMS BATTERY 48V HIGH PRESSURE SYSTEMS SCR BATTERY HIGH VOLTAGE FUEL CELL STACKS F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 17 Clean Energy Systems strongly consolidates its leadership and develops electrification Operational priorities Internal Combustion Engine activity Electrification activity (e-Power) Strengthen Further consolidate Focus on fixed costs Incubate electrification market leader position additional business and break-even point activity through # 1 worldwide opportunities with countries / customers reduction 48V battery pack business where ICE and Hybrid remain predominant EUROPE NORTH ASIA AMERICA (EXCL. CHINA) 30% market share in fuel systems by 2028 * * Plastic fuel systems addressable market F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 18 Our strengths in Hydrogen mobility Strong interest in hydrogen from OEMs Significant and well-positioned order book Order c.€4bn book Commercial and heavy vehicles c.99% 2021 2022 2023 €3bn Higher value in commercial vehicles revenue Well-diversified product portfolio in 2030 x15 X1.5 High pressure Fuel cell Integrated systems stacks* hydrogen systems * From JV EKPO F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 19 Hydrogen capacities ramping up Next launches of activity SOUTH KOREA FRANCE CHINA Wanju 2025 Lachelle 2025 Shanghai 2026 up to 30,000 vessels up to 80,000 vessels up to 60,000 vessels Investments adapted to the volumes’ ramp-up, with an average of €100m per year until 2030 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 20 FINANCIALS Stéphanie Laval VP Investor Relations F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 21 Strong economic revenue growth of +20.3% Driven by all businesses In €m • Solid performance of IES thanks Exterior Systems to high level of order intake in +20.3% +32.5% recent years and 5 additional launches vs. 2022 +13.4% (+16.6%*) • Full year of Lighting activity +968 11,399 +1,233 -279 9,477 • Notable growth in activity in 2023, Modules especially in Europe +20.6% • Q4 2023 benefiting from the first (+18.2%*) modules assembled in the new plant in Austin, Texas • CES ICE activity maintained at a high level confirming leading Powertrain position Economic Organic Scope effect FX effect Economic +0.8% • New Energies posted revenues Revenue growth* Revenue (+3.7%*) 2022 2023 coming from its JVs EKPO * LFL at constant scope and foreign exchange differences and PO-Rein F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 22 Material improvement in quality of operating margin Significant impact of Lighting turnaround whilst pursuing ramp-up in New Energies 2022 2023 In €m +€31m • Operating margin of €395m in 2023 +€167m 395 up +€31m vs. 2022 as reported 364 3.8% 4.3% • Operating margin is up +€167m vs. 2022 228 proforma, i.e. considering acquisitions with a full-year impact in 2022 and 2023 2.4% • Positive impact of the turnaround of Lighting • Hydrogen and electrification activities Operating Proforma Operating pursue their development in-line with the margin 2022 2022 operating margin Group’s strategic roadmap 2023 as reported margin* as reported * Proforma 2022 operating margin as if all acquisitions had taken place on January 1, 2022. See URD 2022 p.272. F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 23 Operating margin at 3.8% As per new operating segments OPERATING MARGIN RATE EXTERIOR SYSTEMS • Activity growth and strong operational excellence for IES in 2023 5.7% • Sharp improvement in Lighting 5.0% 4.6% 4.3% 4.4% 3.8% MODULES • Slowdown in volumes in second half only partially offset by flexibility 2.0% • Launch costs of new plants 1.6% POWERTRAIN • CES ICE once again posted the highest operating Group Exterior Modules Powertrain margin of the Group Systems • New Energies and e-Power continue their ramp-up 2022 2023 in-line with the Group’s strategic roadmap F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 24 Stable net result Group share at €163m In a context of high interest rates OPERATING MARGIN In €m FY 2022 FY 2023 • Increase in operating margin partially offsetting the rise in financial expenses in an environment of high interest rates Operating margin 364 395 In % of revenue 4.3% 3.8% NON-RECURRING ITEMS • Amounted to - €64m, stable against 2022, Other operating including restructuring and currency effects -64 -64 expenses Financial result -62 -105 FINANCIAL RESULT • Impacted by the increase in interest rates Income tax -60 -63 • Financial costs representing 1% of total revenue Net result Group share 168 163 INCOME TAX In % of revenue 2.0% 1.6% • Representing 0.6% of revenue, down -10bps vs. 2022 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 25 Solid Free Cash Flow generation and debt reduction Improvement in working capital and carefully monitored CAPEX In €m NET DEBT - €129m • Further reduction in Group net debt of - €129m in-line with continuous deleveraging 1,669 61 98 1,540 FREE CASH FLOW 649 • FCF of €227m, above adjusted guidance 482 • Representing 2.2% of consolidated revenue CAPEX • Voluntary CAPEX increase vs. 2022 to support growth and new acquisitions • Representing 4.7% of revenue, < 5% capital allocation framework FCF €227m • Focus on strategic investments Net Debt Gross Cash CAPEX ∆WCR Others** Net Debt 31 Dec. ∆WCR 31 Dec. 2022 Flow* 2023 • Inventories reduction * EBITDA – taxes, interest & non-recurring cash items ** Including dividends (-€60m), IFRS 16 (-€91m) and others (+€52m) • Decline in customer receivables, mainly in Lighting F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 26 Continued debt reduction while pursuing growth Solid financial structure In €m NET DEBT In €bn 2.3 LIQUIDITY 2.3 1,669 1,540 Undrawn 1.9 & confirmed 1.8 3 years maturity (stable vs. 2022) credit lines 0.4 Available cash 0.5 31 Dec. 2022 31 Dec. 2023 31 Dec. 2022 31 Dec. 2023 NET DEBT / EBITDA In €m BOND ISSUE PER MATURITY 1.9x 1.7x 500 395 175 130 31 Dec. 2022 31 Dec. 2023 2023 2024 2025 2026 2027 2028 2029 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 27 SUSTAINABILITY Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 28 Our commitment to carbon neutrality Continued to roll out its plan to achieve its objectives OUR AMBITION ACHIEVEMENTS IN 2023 (excl. Lighting) Operational activities (scopes 1 & 2) -19.7% vs. 2019 Neutral in 2025* (scopes 1 & 2) Upstream and downstream activities (scope 3) -30.3% vs. 2019 -30% in 2030 vs. 2019 (scope 3) Full neutrality in 2050 Objectives recognized by SBTi as aligned with Paris Agreement * For acquisitions realized in 2022, scopes 1 & 2 neutral in 2027 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 29 2023 milestones achieved in carbon neutrality Initiatives to improve the carbon footprint ENERGY EFFICIENCY DECARBONIZING SITES ENERGY MIX Improvement by: Commitment with the EDF group 23 to cover 50% of the Group’s +10.2% vs. 2022 13 renewable electricity needs sites in France in 2025 sites +20.9% vs. 2019 20-year power purchase End 2022 End 2023 agreement F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 30 Strong improvement in ESG ratings Demonstrating the Group's growing awareness of climate issues 2022 2023 A- A Highest score recognizing our ambitious roadmap and carbon neutrality objectives 80/100 80/100 Platinum status and among top 1% of companies assessed C C+ Among leaders in its industry A A Leads most industry peers on significant ESG risks and opportunities Included in the CAC SBT 1.5 index F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 31 On track to meet our sustainability targets YOUTH SAFETY* Apprentices, VIE & trainees ACHIEVEMENT 2023 0.87 ACHIEVEMENT 2023 1,233 2025 OBJECTIVE 0.5 2025 OBJECTIVE 1,300 * FR2: Lost time injury frequency rate DIVERSITY / WOMEN ACHIEVEMENT 57.1% 24.0% 24.4% 29.7% 2023 women in the women in senior women among women in the Board of Directors executive positions Managers & Engineers Group’s workforce 2030 OBJECTIVE 40% 30% 30% Sustainability objective in the variable compensation accounting for 20% F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 32 OUTLOOK Laurent Favre Chief Executive Officer F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 33 Continuous return to shareholder A solid track record of dividend distribution Shareholders’ proposed dividend* Historic evolution of dividend per share In € per share 0.74 €0.39 0.49 0.49 per share 0.37 0.39 0.39 0.25 0.16 34.5% payout 2010 2012 2014 2016 2018 2020 2022 2023 * Subject to approval at the General Meeting on April 24, 2024 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 34 Outlook Expected market conditions in 2024 Group’s objectives for 2024 Outperform automotive production Automotive production expected to be flattish (S&P* estimates -0.7%) Increase operating margin with strong monitoring of fixed costs EV ramp-up may not go as fast Increase net result Group share as expected in Europe and North America Increase Free Cash Flow with close management of investments Uncertain environment with inflation and interest rates remaining high Further reduction in net debt * Source: S&P Global Production forecast February 2024 - PC+LCV [0-3.5T] F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 35 Conclusion Group’s strategy remaining a key pillar for its long-term growth 2023, first full year of execution of our strategic roadmap post acquisitions highlighted by strong commercial momentum and solid financial performance Operational excellence of historical businesses and acceleration of the strategy through our new activities: lighting, electrification and hydrogen Record level of order intake across all divisions securing future dynamic growth and demonstrating customers’ trust and the relevance of our offer Solid free cash flow generation enabling us to continue to invest in growth drivers and to deleverage F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 36 QUESTIONS & ANSWERS UPCOMING EVENTS 23 April 2024 24 April 2024 23 July 2024 28 October 2024 2024 first General meeting 2024 half-year 2024 third quarter revenue of shareholders results quarter revenue F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 38 APPENDIX F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 39 Revenue per business In €m 2022 2023 Change LFL* change Exterior Systems 4,210 5,579 +32.5% +16.6% Modules 2,580 3,112 +20.6% +18.2% Powertrain 2,687 2,707 +0.8% +3.7% Economic Revenue 9,477 11,399 +20.3% +13.4% Joint Ventures 939 1,084 +15.5% +13.1% Exterior Systems 3,507 4,860 +38.6% +17.3% Modules 2,347 2,751 +17.2% +18.6% Powertrain 2,684 2,703 +0.7% +3.6% Consolidated Revenue 8,538 10,314 +20.8% +13.4% * LFL at constant scope and foreign exchange differences F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 40 Cash flow statement In €m 2022 2023 Operating margin 364 395 EBITDA 864 900 Gross Cash Flow 666 649 In % of revenue 7.8% 6.3% Capex and development -351 -482 In % of revenue -4.1% -4.7% Change in WCR -72 +61 Free Cash Flow 243 227 Dividends -52 -60 Treasury shares -16 3 IFRS 16 -40 -91 Acquisition impacts & others -950 55 Net debt (end of the period) 1,669 1,540 F Y 2 0 2 3 R E S U L T S – F E B R U A R Y 2 2 , 2 0 2 4 41 Disclaimer The information contained in this document (the “Information”) has been prepared by Compagnie Plastic Omnium SE (the “Company”) solely for informational purposes. The Information is proprietary to the Company. This presentation and its contents may not be reproduced or distributed or published, directly or indirectly, in whole or in part, to any other person for any purpose without the prior written permission of the Company. The Information is not intended to and does not constitute an offer or invitation to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Nor does it constitute an endorsement or advice regarding investment in any security and is nowise to be interpreted as an offer to provide, or solicitation with respect to, any securities-related services of the Company. This presentation consists of information provided in summary form and does not purport to be complete. This communication is neither a prospectus, product disclosure statement or other offering document for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017, as amended from time to time and implemented in each member state of the European Economic Area and in accordance with French laws and regulations. This presentation contains certain projections and forward-looking statements. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union. These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Company believes these statements to be based on reasonable assumptions. 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