Earnings Release • Feb 25, 2016
Earnings Release
Open in ViewerOpens in native device viewer
Levallois, February 25, 2016,
"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."
Financial information Tel.: +33 (0)1 40 87 66 78 Fax: +33 (0)1 40 87 96 62 [email protected]
Plastic Omnium is the world leader of automotive body parts and modules, as well as the world leader of waste collection containers for local governments and for businesses. The Group and its joint ventures have 26,000 employees working in 120 plants and 21 R&D centres in 30 countries worldwide. Plastic Omnium is listed on Euronext Paris, Compartment A, is part of the Paris Bourse's monthly settlement facility (SRD) and of the SBF 120 and CAC Mid 60 indexes (ISIN code: FR0000124570).
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.
| In €m | 2014 | 2015 | % change |
|---|---|---|---|
| Economic revenue1 | 5,251 | 5,982 | +13.9% |
| Consolidated revenue2 | 4,437 | 5,010 | +12.9% |
| Operating margin3 | 393 | 470 | +19.6% |
| as a % of consolidated revenue | 8.8% | 9.4% | +0.6 pts |
| Net profit-group share | 225 | 258 | +15.0% |
| EBITDA4 | 610 | 691 | +13.4% |
| as a % of consolidated revenue | 13.7% | 13.8% | +0.1 pts |
| Investments | 326 | 323 | -0.9% |
| Free cash flow5 | 83 | 202 | +143.4% |
| Net debt6 at 12/31 | 390 | 268 | -31.3% |
| Net debt/shareholders' equity | 36% | 21% | -15 pts |
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.
| In €m, by business segment | 2014 | 2015 | % change | At constant scope and exchange rates |
|---|---|---|---|---|
| Automotive | 4,840 | 5,597 | +15.6% | +7.3% |
| Environment | 410 | 386 | -6.0% | -1.6% |
| Economic revenue1 | 5,251 | 5,982 | +13.9% | +6.6% |
| Consolidated revenue2 | 4,437 | 5,010 | +12.9% | +5.0% |
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.
1,2,3,4,5,6 The financial aggregates are defined on page 5 of this press release
| In €m and as a % of revenue, by geographic region |
2014 | 2015 | % change | At constant scope and exchange rates |
|---|---|---|---|---|
| Europe/Africa | 2,836 54% |
3,136 52% |
+10.6% | +10.2% |
| North America | 1,401 27% |
1,683 28% |
+20.2% | +1.3% |
| South America | 179 3% |
162 3% |
-9.3% | -2.8% |
| Asia | 835 16% |
1,001 17% |
+19.9% | +5.6% |
| Economic revenue12 | 5,251 100% |
5,982 100% |
+13.9% | +6.6% |
| Consolidated revenue2 | 4,437 | 5,010 | +12.9% | +5.0% |
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:
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.
1,2 The financial aggregates are defined on page 5 of this press release
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.
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%.
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).
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%.
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:
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.
The presentation of the results, in French with a simultaneous translation into English, will take place on Thursday, February 25, 2016 at 9:00 a.m., Paris time.
It will also be accessible by webcast on the website of Groupe Plastic Omnium and by telephone to:
Access codes:
More detailed financial information can be found on the website, at www.plasticomnium.com.
April 21, 2016 – Revenue from first quarter 2016
April 28, 2016 – Shareholders' Meeting
July 27, 2016 – 2016 half-year results
On the date of this press release, the account audit procedures were complete and the Statutory Auditors' Report was in the process of being issued.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.