2012 revenue rises 14% to €4.8 billion

Compagnie Plastic Omnium revenue for the year ended 31 December 2012 totaled € 4,806.2 million, representing an increase of 13.9% as reported and 8.5% at constant scope of consolidation and exchange rates. For the year, the Company strengthened its global leadership in its two businesses – Automotive and Environment – and once again outperformed its markets.

Advertisement

Growth continued in the fourth quarter, with revenue rising by 10.4%, in an environment shaped by a slight 2.5% increase in automobile production worldwide and a 7% decline in Europe. Revenue for the last three months of the year amounted to €1,288 million, the best quarter in the Company’s history.

Plastic Omnium’s geographic shift towards the fastest-growing regions accelerated in 2012. Revenue from Asia, North America and Eastern Europe rose by 28%, 31% and 31% respectively. These three growth regions now account for 53% of total revenue. Plastic Omnium also consolidated its positions in Western Europe, led by the success of its innovative solutions to reduce vehicle weight, polluting emissions and waste generation.

2012 was also a record-setting year in terms of order intake that validated the Company's business model, which is based on international expansion and innovation. More than half of the contracts signed during the year were in the BRIC countries and 15 new contracts involved projects to reduce vehicle weight and emissions.

BUSINESS REVIEW
In 2012, revenue generated by Plastic Omnium Automotive amounted to €4.343 million, an increase of 16.7% as reported and 9.3% at constant scope of consolidation and exchange rates. With this performance, the business once again grew faster than worldwide automobile production, which rose by 6.6% for the year. Nearly 5 million additional vehicles were produced worldwide, of which 2.3 million in North America and 1.2 million in China. In both regions, Plastic Omnium increased its market share: in the United States, following the mid-2011 acquisition of Ford’s fuel tank and fuel system production assets and in Mexico, with the construction of a new plant to produce parts for Volkswagen; and in China, where four new plants were added to the manufacturing base and three more are currently being built. Revenue in China rose by 27% to €285 million and now accounts for 7% of the Automotive business total.

The Company pursued its strategy of developing in fast-growing automobile markets with the acquisition of all outstanding shares in the exterior components business in India and the creation of a majoritycontrolled joint venture in Russia to produce fuel tanks and fuel systems.

At the same time, the Company increased its research and development investments for programs designed to reduce vehicle weight and emissions. The new research center in Lyon for composite materials has been operational since mid-2012 while the development center for exterior components in China will be brought on stream in 2013. Plastic Omnium also announced the construction of a new R&D center for fuel tanks and fuel systems in Compiegne (France), which will open in mid-2014.

Focused on strengthening the Company’s innovation capabilities and increasing production capacity in growth regions, this strategy has helped to further diversify the customer portfolio, with Volkswagen- Porsche now Plastic Omnium’s largest customer, generating 15% of Automotive business revenue. German customers are now the largest contributor to the Automotive business, accounting for 31% of revenue, followed by US customers (General Motors, Ford and Chrysler) at 25%.

In 2012, the Environment Division divested its road signage businesses in France, Germany and Spain in order to focus on waste containers and related services. At constant scope of consolidation and exchange rates, Plastic Omnium Environment revenue rose by 2%. The Company consolidated its global leadership in the sector, scoring major successes in France and Germany with new products (underground containers) and new services (incentive-based waste collection invoicing systems). It also stepped up the pace of development outside Western Europe, with the signature of important contracts in Hungary, Brazil and Malaysia.

OUTLOOK
Compagnie Plastic Omnium will publish its 2012 results on 28 February 2013 and the increase in revenue will result in a further improvement in earnings. As previously announced, this growth will be self-financed by funds from operations, as the Company generated positive free cash flow in second-half 2012.

Plastic Omnium’s growth will also be supported by an increase in backlog and related spending programs in 2013. In the Automotive business, around 100 new programs will be launched, of which 20% in innovative equipment for exterior components and fuel systems. The Environment business will continue to develop products and services for waste collection and electronic management of sorted waste systems.