Plastic Omnium Introduces Its 2016-2020 Growth and Innovation Strategy
13 December 2016 - 6:34PM
Business Wire
Regulatory News:
On the occasion of its "Investor Day" held today, Plastic Omnium
(Paris:POM) is introducing its growth and innovation strategy for
the 2016-2020 period.
€8 billion of consolidated revenue in 2020
Plastic Omnium confirmed that its business will continue to
outperform the worldwide automotive production over the 2016-2020
period to reach €8 billion of consolidated revenue in 2020,
compared with €5 billion in 2015 (i.e. an economic revenue of €9.5
billion in 2020 compared with €6 billion in 2015).The Group's
future growth is driven by an ambitious development and innovation
strategy:
- Gains in market sharesAlready
the world leader in each of its businesses, Plastic Omnium will
reinforce its leading positions with an expected 19% of the bumper
market in 2020, compared with 15% in 2016, and 25% in fuel systems,
compared with 21% in 2016. These gains in market shares are based
on a robust backlog – 90% of the 2020 revenue already
secured.Further capacities and an improvement in the plant loading
of the Group's industrial footprint will enable this growth to be
achieved.
- Strong development of its innovative
product lines:The hardening of regulatory constraints (CO2 and
NOx) worldwide is an important growth lever for Plastic Omnium's
businesses. The Group is developing innovative solutions to make
vehicles lighter (plastic tailgates, composite and carbon fiber
parts), to improve aerodynamics (spoilers), and for SCR emissions
control systems and specific fuel tanks for plug-in hybrid
vehicles. The ramp-up of these product lines will enable Plastic
Omnium to achieve a revenue of more than €1.4 billion in 2020 with
these innovative solutions, compared with €700 million in
2016.
Self-financed investments of €2.5 billion over the 2016-2020
period while maintaining a strong free cash-flow
To respond to its commercial success with the main carmakers
worldwide and to future market requirements, Plastic Omnium will
invest €2.5 billion over the 2016-2020 period. These investments
are intended to strengthen and maintain its industrial footprint as
well as to develop new automotive programs.This investment policy
will be conducted while enabling the Group to generate a
significant cash surplus every year from operations.
Benchmark profitability
The strong growth expected over the 2016-2020 period will be
accompanied by strict management of industrial and project costs,
which will continue to place Plastic Omnium’s profitability among
the best in the automotive equipment industry.
Plastic Omnium will benefit from the following operating levers
over the period:
- the expected recovery of activities
stemming from the acquisition of Faurecia Auto Exterior;
- the improvement in plant loading of the
Group's industrial footprint;
- the growth in the Group's activities in
North America;
- the success of the innovation
portfolio;
- and the accretive impact of
non-strategic activities’ disposals.
Innovation: being positioned to take advantage of
technological changes in the automotive industry
Building on this strategy of profitable and cash-flow-generating
growth, Plastic Omnium is increasing its capacities for innovation
to propose new solutions to carmakers, solutions that will respond
to changes in automotive technologies. By investing 6% of its
revenue each year in research and development, the Group is
positioning itself to design the external body parts of the vehicle
of the future and to be a reference equipment manufacturer for all
propulsion energies (gasoline, diesel, hybrid, hydrogen and
electric).
_____________
The detailed presentation of this 2016-2020 growth and
innovation strategy will take place on Tuesday, December 13, 2016
at 10 am, Paris time.It will also be available by webcast on the
Plastic Omnium Group website www.plasticomnium.com.
Glossary
1. Economic revenue corresponds to consolidated revenue, plus
revenue from the Group's joint ventures, consolidated at their
percentage of ownership. This metric reflects the operating and
managerial realities of the Group.
2. The consolidated revenue, in implementation of IFRS Standards
10-11-12, does not include the share of joint ventures, which are
consolidated by using the equity method.
Plastic Omnium is the world leader in automotive exterior
components and modules, automotive fuel systems, and waste
container solutions for local authorities and companies. The Group
has 32,000 employees across 130 plants, 23 R&D centers and 31
countries worldwide. Plastic Omnium is listed on Euronext Paris,
compartment A. It is eligible for the Deferred Settlement Service
(SRD) and is part of the SBF 120 and CAC Mid 60 indices (ISIN code:
FR0000124570).
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Plastic OmniumFinancial InformationTel. : +33 (0)1 40 87
66 78Fax : +33 (0)1 40 87 96
62investor.relations@plasticomnium.com
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