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2015, a record year

  • Economic revenue: €5,982 million, up by 14%

  • Consolidated revenue: €5,010 million, up by 13%

  • Operating margin: €470 million (9.4% of consolidated revenue), up by 20%

  • Net profit-group share: €258 million, up by 15%

  • EBITDA: €691 million (13.8% of consolidated revenue), up by 13%

  • Free cash flow: €202 million (4.0% of consolidated revenue), 2.4x that of 2014, while maintaining a high level of investment (€323 million)

  • Net debt: €268 million, down by €122 million (-31%), representing 21% of equity and 0.4x EBITDA

Laurent Burelle, Chairman and CEO of Plastic Omnium, stated:

"The year 2015 was a record year. All of our financial aggregates posted double-digit growth to reach historic highs. Revenue, operating margin and net income all nearly doubled in 5 years. The financial position of the Group improved even more. This performance is evidence of our ability to seize growth opportunities, while improving the profitability of our operations. The year was also marked by strong commercial activity, as evidenced by the unprecedented number of orders, reinforcing our leading position in our businesses, validating our technologies, and thus giving us a clear view of future growth. In addition, the large-scale project of external growth, with the acquisition of Faurecia's exterior systems business, will broaden Plastic Omnium's business. It will enable us to better serve our clients throughout the world, by reinforcing our product offering and our technological potential. Encouraged by these results and this transformative operation, I am convinced that Plastic Omnium has the ability to pursue profitable growth, while continuing to outperform the automotive market."

2015 results: strong growth in all aggregates

The Board of Directors of Compagnie Plastic Omnium met on 24 February 2016 under the Chairmanship of Mr. Laurent Burelle, and approved the 2015 financial statements.

These results are the fruit of sustained investments to grow by globalizing the industrial network and developing innovative products, while controlling costs and preserving the financial and capital independence of the Group.

Strong revenue growth

In 2015, Compagnie Plastic Omnium's economic revenue1 stood at €5,982 million, up strongly by 13.9% from 2014 (up by 6.6% at constant scope and exchange rates) benefiting from a stronger second half of the year (up by 10.4% at constant scope and exchange rate compared to the second half of 2014). The growth of over €700 million in revenue was driven in equal parts by Europe (roughly €300 million) and North America (roughly €300 million) while Asia for the first time crossed the €1 billion revenue threshold.

Plastic Omnium Automotive

The economic revenue1 of Plastic Omnium Automotive reached €5,597 million. It rose by +15.6% and by 7.3% at constant exchange rates, when worldwide automotive production was up by 1.5%, representing a market outperformance of close to 6 points. This outperformance accelerated during the course of the second half of the year. The strong growth can be explained by the installation of new industrial capacity in the most dynamic regions, and by innovation with products such as SCR, for reducing diesel vehicle emissions, and lighter tailgates:

  • Europe grew by 12.4% at constant exchange rates and benefited from 51 new programs launched in 2015. Business was particularly good in France (Renault Espace), the United Kingdom (Jaguar XJ and XE) and Germany (Audi SCR);

  • business in Asia grew by 5.4% at constant exchange rates driven by China, South Korea, Japan and India. Automotive revenue in China reached €491 million in 2015, or 8% of the Group's total revenue;

  • business in North America (+1.2% at constant exchange rates in 2015) recorded strong growth in the second half of the year (+9% at constant exchange rates), confirming it as the main growth region for the Group going forward. The region benefited from two new Volkswagen and General Motors plants coming into operation in the USA in the second half of the year. Three additional plants will be built in Mexico by 2017.

Operating income for the Automotive Division amounted to €447 million in 2015, equal to 9.7% of consolidated revenue, versus €364 million in 2014 (9.0% of consolidated revenue). The Automotive Division benefited from a high utilization rate of its production capacity worldwide. The improved operating margin was also supported by the operational excellence of the 132 new programs launched during the year together with strict cost control.

Plastic Omnium Environment

The revenue for Plastic Omnium Environment was down 1.6% to €386 million at constant scope and exchange rates, impacted by budgetary restrictions in French local authorities. Plastic Omnium's Environment Division achieved an operating margin of €23 million in 2015 (6% of revenue versus 7.3% in 2014), helped by an efficient industrial network and streamlined structures, and increased its net income by 50%, which went from €9 million in 2014 to €15 million in 2015. The free cash flow was €26 million for a net debt of €11 million. The development plan for products and services decided upon in 2015 and launched in 2016, associated with new governmental incentives paid to French local authorities in order to promote sorting and recycling, should provide to Plastic Omnium Environment a new dynamic.

Net profit-group share of €258 million: 5.2% of consolidated revenue

In 2015, Plastic Omnium intensified its industrial efficiency and organizational efforts: noncurrent charges came to €75 million, versus €35 million in 2014. Net income grew by 14.5% to €263 million. It accounted for 5.2% of revenue. The Group's share of net income came to €258 million, an increase of 15%.

Free cash flow of €202 million

Group EBITDA reached €691 million (13.8% of consolidated revenue) in 2015, up by 13.4%, and the cash flow from operations came to €606 million (12.1% of consolidated revenue), an increase of 9.2%. The year 2015 saw the implementation of a sustained investment policy. Investments totaled €323 million, or 6.4% of consolidated revenue, compared to €326 million in 2014 (including €47 million from the Gerland rental investment). Nine new plants came into operation in the year (4 in China, 2 in the United States, 1 in Germany, 1 in South Korea and 1 in Russia) and 132 automotive programs were launched. Free cash flow amounted to €202 million, up strongly from the €83 million reached for 2014. This enabled a significant reduction in net debt to €268 million (versus €390 million at 2014 year end) after €75 million in dividends and treasury shares. Group net debt/equity was 21% and net debt/EBITDA was 0.4x (versus 36% and 0.6x respectively in 2014).

Dividend per share to €0.41

The Board of Directors will propose, at the Shareholders' Meeting of April 28, 2016, a dividend of €0.41 per share, an increase of 11% from the preceding year. The dividend will be paid on May 12, 2016, after approval by the Shareholders' Meeting. During the first half of 2016, Compagnie Plastic Omnium will also proceed with the cancellation of 1.1 million treasury shares, causing the Burelle SA controlling interest to go from 56.60% to 57.01%.

Outlook for 2016

Following a robust 2015, Plastic Omnium will continue on its path of profitable and cashgenerating growth in 2016. In an automotive market expected to grow between 2% and 3% in 2016, the Group will:

  • sustain high operational performance ;

  • put 3 new plants (1 in the United Kingdom and 2 in Mexico) into operation;

  • start building 3 new plants (1 in each of Mexico, China and India) to come into operation in 2017 and 2018;

  • launch 155 new automotive programs, 37 of which on new product lines.

The Group confirms its ability to outperform global automotive production by virtue of:

  • a record number of orders in 2015;

  • the growing success of SCR systems for reducing diesel vehicle emissions.

Planned acquisition of Faurecia's Exterior Systems business

Last December 14th, the Group announced the signature of a memorandum of understanding for the planned acquisition of Faurecia's Exterior Systems business, for an enterprise value of €665 million. Employee representative bodies are being informed of developments according to schedule. Once these bodies are fully informed, the transaction must be submitted to the relevant Competition Authorities. It should be able to be finalized during the course of 2016.