PLASTIC OMNIUM (EPA:POM) - Revenue at September 30, 2018: €5,858 million, +3.6%
Transparency directive : regulatory news
25/10/2018 07:00
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Levallois, October 25, 2018,Revenue(1) at September 30, 2018: EUR5,858 million, +3.6%
- Strategic positioning of the Group as an automotive pure player with the
acquisition of the world leader of front-end modules, HBPO, and the on-going
disposal of the Environment Division.
- Revenue(1) growth of 3.6% over the first nine months of the year and 15.7%
over the third quarter.
- Considering the evolution of market conditions, the Group forecasts for 2018
(and in comparison to 2017 IFRS 5 data):
o a growth in revenue(1) of at least 5% (ie proforma(4) revenue(1) of around
EUR8.9 billion euros);
o a 2018 operating result comparable to that of 2017;
o a sharp increase in net result group share following scope effects;
o a triple-digit free cash-flow.
- Investor Day held on December 13, 2018 at -Alphatech (Compiègne, France) to
present the Group's growth and innovation strategy in its new scope of
activities.
Change at Change in
constant scope global
9 months 2017 9 months and exchange automotive
In EURM restated IFRS 5 2018 Change rates(5) production
Economic
revenue(1) 5,655.9 5,858.5 +3.6% +2.3% +0.8%
Change at Change in
constant scope global
Q3 2017 and exchange automotive
In EURM restated IFRS 5 Q3 2018 Change rates(5) production
Economic
revenue(1) 1,761.7 2,037.6 +15.7% -2.1% -2.1%
*IHS data - October 2018
Change in the scope and presentation of the businesses of Compagnie Plastic
Omnium
- Planned disposal of the Environment Division
On July 19, 2018, Compagnie Plastic Omnium signed a put option for the sale of
its subsidiary Plastic Omnium Environment BV to the Latour Capital/BpiFrance
(Banque publique d'investissement) consortium. Approval was obtained from the
relevant competition authorities, as well as from the employee representatives.
The closing of this operation is expected by the end of 2018.
In application of IFRS 5 on January 1st, 2018, the results of the Environment
business are presented in a specific line "results from discontinued
operations". As a consequence, revenue from the first nine months of 2017 was
restated to report on a basis comparable to the first nine months of 2018.
- Takeover of HBPO, world leader of front-end modules
On June 26, 2018, Compagnie Plastic Omnium completed the acquisition of the
German group Mahle's 33.33% shareholding in the HBPO joint venture, up to then
held by Plastic Omnium, Hella and Mahle. Plastic Omnium now holds 66.67% of
HBPO, world leader of front-end modules, with a revenue of EUR2 billion.
In application of IFRS 10, Compagnie Plastic Omnium's revenue includes,
starting on July 1, 2018, HBPO at 100% (full consolidation). Up to June 30,
2018, HBPO had been accounted for by the equity method and its share in revenue
was reported in economic revenue only.
- New presentation of the Group's activities around two operating segments
Since July 1st, 2018, Plastic Omnium reports its activities around two
different operating segments:
- Plastic Omnium Industries brings together the production activities, with 98
plants in 22 countries:
o Intelligent Exterior Systems, dedicated to complex and intelligent exterior
systems.
o Clean Energy Systems, dedicated to clean energy storage systems.
- Plastic Omnium Modules brings together the module assembly activities,
with 24 sites in 11 countries:
o HBPO, dedicated to front-end modules.
Change in revenue by operating segment
Over the first nine months of 2018, economic revenue(1) of Compagnie Plastic
Omnium totaled EUR5,858.5 million, an increase of 3.6%, in comparison with the
IFRS 5 restated first nine months of 2017.
Growth was 2.3% at constant scope and exchange rates (EUR219.9 million due to
negative currency effects and EUR255.9 million due to positive scope
effects).
The outperformance of the automotive production was 1.5 point (IHS October
2018: automotive production up 0.8% over nine months), of which 2.8 points for
Plastic Omnium Industries.
Change at
constant scope
9 months 9 months and exchange
In EURM 2017 2017 9 months Change rates(5)
by operating segment published estated 2018
IFRS 5
Plastic Omnium Automotive 5,655.9 - - -
Plastic Omnium Industries - 5,090.4 5,002.2 -1.7% +3.6%
Plastic Omnium Modules - 565.5 856.3 +51.4% -4.6%
Plastic Omnium Environment 245.5 - - - -
Economic revenue(1) 5,901.4 5,655.9 5,858.5 +3.6% +2.3%
Joint ventures 912.7 912.7 781.9 -14.3% +4.8%
Consolidated revenue(2) 4,988.7 4,743.2 5,076.6 +7.0% +2.0%
In the third quarter of 2018, Compagnie Plastic Omnium's economic revenue(1)
amounted to EUR2,037.6 million, up 15.7% compared to the 2017 restated IFRS 5
3rd quarter. At constant scope and exchange rates, it was down by 2.1%, within
a 2.1% drop in worldwide automotive production (source: IHS October 2018).
Plastic Omnium Industries, up 0.3% at constant scope and exchange rates,
achieved an outperformance of 2.4 points compared to worldwide automotive
production.
Plastic Omnium Modules, whose business is 30% German, was down 9.2% over the
quarter. The cost structure of this activity is essentially variable. Three
assembly plants are currently under construction (1 in Germany, 2 in Mexico)
and will support growth from 2019.
Change at
Q3 2017 constant scope
Q3 2017 restated and exchange
In EURM published IFRS 5 Q3 2018 Change rates(5)
by operating segment
Plastic Omnium Automotive 1,761.8 - - -
Plastic Omnium Industries - 1,576.0 1,556.4 -1.2% +0.3%
Plastic Omnium Modules - 185.7 481.2 +159.2% -9.2%
Plastic Omnium Environment 77.4 - - - -
Economic revenue(1) 1,839.2 1,761.7 2,037.6 +15.7% -2.1%
Joint ventures 305.4 305.4 150.7 -50.7% -0.5%
Consolidated revenue(2) 1,533.7 1,456.3 1,886.9 +29.6% -2.2%
Change in economic revenue by region
Change at
9 months constant scope
In EUR millions and % 9 months 2017 and exchange
of sales By region(3) 2017 restated 9 months Change rates(5)
published IFRS 5 2018
Europe 3,198.1 2,972.5 3,189.0 +7.3% +2.2%
North America 1,539.2 1,532.2 1,525.4 -0.4% +0.3%
South America 205.4 198.8 154.1 -22.5% +5.4%
Asia, including China 958.7 952.4 990.0 +3.9% +5.7%
Economic revenue(1) 5,901.4 5,655.9 5,858.5 +3.6% +2.3%
Joint ventures 912.7 912.7 781.9 -14.3% +4.8%
Consolidated revenue(2) 4,988.7 4,743.2 5,076.6 +7.0% +2.0%
Change at
Q3 2017 constant scope
In EUR millions and % Q3 2017 restated and exchange
of sales By region(3) published IFRS 5 Q3 2018 Change rates(5)
Europe 963.2 892.2 1,069.0 +19.8% -3.2%
North America 491.2 488.7 582.3 +19.1% -2.5%
South America 76.3 74.5 52.7 -29.2% +2.2%
Asia, including China 308.5 306.3 333.6 +8.9% +1.2%
Economic revenue(1) 1,839.2 1,761.7 2,037.6 +15.7% -2.1%
Joint ventures 305.4 305.4 150.7 -50.7% -0.5%
Consolidated revenue(2) 1,533.7 1,456.3 1,886.9 +29.6% -2.2%
Over the first nine months of the year, business activities in Europe, which
represent 54% of total revenue(1), was up 7.3%. It benefited from the full
consolidation of HBPO on July 1st, 2018, 60% of whose activity is European. At
constant scope and exchange rates, the activity posted an increase of 2.2%,
outperforming by 2.1 points the worldwide automotive production, stable at
+0.1%.
For the 3rd quarter, growth reached 19.8% (full consolidation of HBPO for an
entire quarter). At constant scope and exchange rates, revenue in Europe was
down 3.2% within a decrease in automotive production of 5.3%. European
automotive production has been particularly affected by occasional difficulties
of OEMs in the application of the WLTP standards, especially in Germany
(production down by 17.3%). This country is the largest contributor to the
group's revenue (18% of total revenue). Excluding Germany, sales were up by
2.2%, mainly driven by Eastern Europe.
Business in North America grew slightly by 0.3% at constant scope and exchange
rates over the first nine months of the year, in a context of automotive
production down 1.2%.
In the third quarter, growth was up 19.1% due to the integration of HBPO: its
contribution to revenue was EUR138 million. At constant scope and exchange
rates, business in North America was down 2.5% in a context of worldwide
automotive production up 1.7%. In July 2018, Plastic Omnium commissioned the
Greer plant (South Carolina) for BMW, to which it initially transferred
production from the Anderson plant (South Carolina). This plant, the Group's
first 4.0 plant, will eventually represent the largest plant in the group, with
more than $450 million in revenue. The group is also in the process of
launching new programs at its Mexican plants and has recently gained market
share at HBPO. It thereby confirms its ability to significantly accelerate its
growth in North America starting in 2019.
Business in Asia, including China, increased by 5.7%, at constant scope and
exchange rates over nine months. In China, which represents revenue(1) of
EUR549.5 million, or 9% of total revenue, the increase in business at constant
exchange rates, came to 10.2% over the first nine months of the year. In the
third quarter, growth in China was up 4.0%, whereas automotive production was
down 3.6%, i.e. an outperformance of 7.6%. In this country, the Group is
benefiting from gains in market shares, a steady ramp-up in its industrial
footprint and an increasing business especially with European OEMs.
2018 outlook
Compared to an annual growth of the global automotive production estimated at
+2.2% in July 2018, the latest forecasts for 2018 reduce it to +0.7% (source
IHS: October 2018).
Given this evolution, the Group forecasts for 2018 (and in comparison with 2017
IFRS 5 data):
- a growth in revenue(1) of at least 5% (ie proforma4 revenue(1) of around
EUR8.9 billion euros);
- a 2018 operating result comparable to that of 2017;
- a sharp increase in net result group share following scope effects;
- a triple-digit free cash-flow.
On December 13, 2018, Plastic Omnium will hold in ?-Alphatech (Compiègne,
France) an Investor Day dedicated to its growth and innovation strategy in its
new scope of business.
Calendar
December 13, 2018 Investor Day in -Alphatech
(Compiègne, France)
February 14, 2019 2018 annual results
The conference call for financial analysts, investors and journalists will take
place today at 7:30 am (Paris time).
Dial-in numbers are the following:
* France Toll: +33172727403 PIN: 50945666#
* United Kingdom Toll: +442071943759 PIN: 50945666#
* United States Toll: +1 6467224916 PIN: 50945666#
Glossary
1. The economic revenue reflects the Group's operational and managerial
reality. It corresponds to the consolidated sales plus the sales of the
Group's joint ventures at the Group's percentage stake: BPO (50%) and YFPO
(50%) and HBPO for 33.33% until its full consolidation on July 1st, 2018.
2. The consolidated sales does not include:
a. the share of joint ventures, which are accounted for by the equity
method, in application of IFRS 10-11-12;
b. Plastic Omnium Environment's revenue, in application of IFRS 5 at
January 1st, 2018.
3. The revenue per region breaks down as follows: Europe (including Africa),
North America, South America and Asia.
4. Proforma economic revenue includes 100% of Plastic Omnium Modules' revenue
at January 1st, 2018 and does not include Plastic Omnium Environment's
revenue.
5. At constant scope and exchange rates:
a. The currency effect is calculated by applying the exchange rate of the
previous period to the revenue of the current period.
b. The scope effect is calculated:
i. by subtracting the revenue, over the current period, of the companies
acquired during the previous period (Changchun),
ii. in the event of a change in the percentage of interest (HBPO): by
applying to the previous period the consolidation method of the
current period (full consolidation from July 1st, 2017),
iii. by subtracting the revenue (from the effective date of sale), over
the period to be compared, of the companies sold during the current
period (Plastic Recycling) and the previous period (Trucks).
Note : in application of IFRS 5 for the Environment division, the
revenue is restated on January 1st of each reported period.
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