Plastic Omnium has set out its growth plan for 2019-2022, as well as its innovation roadmap at the Investor Day in Brussels.
“Plastic Omnium’s moves over the past ten years, along with the integration of new environmental and social issues in the development of our operations, now position the Group as a major and responsible player in the automotive industry,” said Plastic Omnium chairman, Laurent Burelle.
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“We want to continue to grow in clean and connected mobility while remaining an independent family-owned Group able to ensure its long-term development. In a context of rapid, in-depth transformation of the automotive industry, such is the mission I have entrusted to a new management team, which will propel Compagnie Plastic Omnium into an exciting future filled with opportunities.”
For his part, Plastic Omnium CEO, Laurent Favre, added: “Our development potential is strong and rests on solid human, industrial and financial fundamentals. Our roadmap is clear: transforming the Group to offer our customers solutions that meet the technological, environmental and social requirements of the car of the future.
“With no expected rebound in the worldwide automotive market over the next three years, this will firstly require the proactive management of our cost structure and the strengthening of our balance sheet. We will thus be able to seize growth and innovation opportunities that form part of our technological roadmap.”
2019 financial outlook:
- Outperformance of more than five points compared to a 6% decline in automotive production
- Operating margin of around 6%
- EBITDA of around EUR1bn (US$1.1bn)
- Free cash-flow of around EUR300m
2020-2022 financial outlook:
- Outperformance of around five points per year compared to the worldwide automotive production forecast of -2% in 2020 and stability in 2021 and 2022 (Plastic Omnium assumptions)
- Annual growth in operating profit and EBITDA (by value)
- Free cash-flow of more than EUR200m per year over the period
- Steady reduction in debt on a like-for-like basis
