Compagnie Plastic Omnium: Revenue1 at September 30, 2017: €5,901 Million Sharp Growth in Automotive Operations: +22.6%

Regulatory News:

Compagnie Plastic Omnium (Paris:POM):

Over the first nine months of the year:

• Sustained growth: +20.7% (+22.6% in the Automotive business); +11.4% at constant scope and exchange rates
• Strong outperformance of 9.1 points in comparison with worldwide automotive production
• Very high growth in all regions

For the 3^rd quarter 2017:

• Strong organic growth: +9.6% at constant scope and exchange rates
• Negative currency effect of -€51.7 million

For 2017 as a whole:

• Strong outperformance in comparison with worldwide automotive production

Investor Day held on December 13, 2017 in Levallois (Paris)

Breakdown of economic revenue by business segment

Over the first nine months of the year 2017, economic revenue¹ of Plastic Omnium totaled €5,901.4 million, an increase of 20.7% in reported data, in comparison with the first 9 months of the year 2016. Growth was 11.4% at constant scope and exchange rates (-€24.3 million due to currency effects and +€654.3 million due to scope³).
Consolidated revenue², excluding joint ventures, amounts to €4,988.7 million. It rose by 21.3% based on published figures compared to the first 9 months of 2016 and by 10.1% at constant scope and exchange rates.
This sharp increase is attributable to:

• organic growth of 11.8%, i.e. €537 million, in the automotive division, which outperformed worldwide automotive production by 9.1 points;
• the exterior systems acquired on July 31, 2016 (with a scope effect of +€558 million for the first 7 months of 2017).

Over the first 9 months of the year 2017, Automotive revenue¹ for Plastic Omnium was €5,656.0 million. It grew by 22.6%, and 11.8%, at constant scope and exchange rates³, in a context of worldwide automotive production that was up by 2.7% (source: IHS October 2017), thus representing market outperformance of 9.1 points. This shows the solidity of the order book, with the confirmation of gains in market shares, the ramp-up of new capacities (Mexico, England), and the success of the portfolio of innovative products.

On September 20, Plastic Omnium announced its plan to sell its Environment division.
Following the disposal of non-core activities in mid-2016, the Environment division's activity is now fully focused on products and services aimed at optimizing waste management for local authorities and industry. Business activity rose by 4.1% at constant scope and exchange rates.

In the 3^rd quarter of 2017, economic revenue¹ of Plastic Omnium totaled €1,839.2 million, an increase of 7.6%, in reported data, compared to the 3^rd quarter of 2016, and by 9.6%, at constant scope and exchange rates. In the 3^rd quarter, exchange rates had a negative impact of €51.7 million on growth, mainly due to the fall in the value of the dollar over the period.

Consolidated revenue² in the 3^rd quarter of 2017 came to €1,533.8 million, an increase of 5.5% compared to the 3^rd quarter of 2016 (+7.8% at constant scope and exchange rates).

Breakdown of economic revenue by region

Growth of Automotive activity across all regions

Activity in Europe, which accounts for 53% of total automotive revenue¹, increased by 24.3%. It benefited from the acquisition of external systems, a mainly European business. At constant scope and exchange rates, the activity posted an increase of 4.4% compared to a 2.4% rise in automotive production.

Business in North America grew by 18.2% at constant scope and exchange rates over the first 9 months of the year, outperforming automotive production by 22.6 points. The business benefited from the new capacities that have come on stream over the past 2 years (2 plants commissioned in the United States in 2015, followed by 3 plants in Mexico in 2016 and 2017), and the expected ramp-up of SCR systems to reduce diesel vehicle emissions in the United States.

Business in Asia, including China, increased by 19.3%, at constant scope and exchange rates. In China, which represents revenue¹ of €509 million, or 9% of total revenue, the increase in business at constant exchange rates, came to 24.4% over the first nine months of the year, for a 3.4% increase in automotive production. The Group benefited from market share gains and the high investments made over the last 3 years to develop the industrial footprint.

Performance evaluation over the period

• Turnaround of the external systems business acquired

The external systems business acquired in July 2016 for a final amount of €402 million has now been completed. Its industrial rationalization is continuing at a sustained pace, with the recording of the first significant impacts on its operational profitability.

• Innovation as a growth and performance lever

SCR systems for reducing diesel vehicle emissions recorded further growth worldwide with an increase of 46% over the first 9 months of the year to reach revenue of €293 million. At present, 19 programs are under production and 16 are under development for 13 carmakers.
The range of tailgate and spoiler products has been enhanced. Today, 53 programs are under production while 33 are under development.
Production of the first pressurized tanks for plug-in hybrid vehicles started in December 2016. Four programs are also in the development phase. The Group has thus taken position to cater for the strong growth of hybrid electric vehicles.

• A sustained investment program to develop and optimize its growth-tapping industrial facilities

Committed to a major investment program of €2.5 billion over the 2017-2021 period, the Group continued its investments in the 3^rd quarter to further strengthen and optimize its industrial facilities through:

• four new plants to be launched in 2018: one in China, one in India, and two in the United States, including the Greer plant (in South Carolina) – the pilot plant for the deployment of the 4.0 industry of the future within the Group;
• three plants to be launched in 2019: one in India, one in Morocco and one in Slovakia;
• an advanced research center focused on new energies (hybrid, hydrogen, fuel cell) in Brussels, Belgium, that will open in early 2019, with 200 engineers, thus bringing together on a single site the Group's fundamental research in this field.
• Strengthening of the Group's majority control

On July 20, 2017, the Board of Directors decided to cancel 1.5 million treasury shares as of August 14, 2017. After this cancellation, the percentage of control of Burelle SA rose from 57.01% to 57.57%.

2017 outlook

For the whole of 2017, the Plastic Omnium Group will largely outperform worldwide automotive production (expected to grow around 2%), and will record a significant increase in revenue.
The 2017 financial results will show a strong increase and the Group's balance sheet will be further strengthened, reflecting the continuous improvement of industrial performance combined with the impacts of the rationalization of the acquired business.

On December 13, 2017, Plastic Omnium will hold an Investor Day dedicated to the Group's strategic plan for the 2017-2021 period, and its innovation strategy for a cleaner, safer and smarter vehicle of the future.

Calendar

These two meetings will be held at the Group's administrative headquarters:
1 allée Pierre Burelle – Levallois-Perret (Paris – France)

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.
3. For 2017, the scope effects exclude Faurecia's Exterior Systems activity and the Chinese Changchun plant. In 2016, the following restatements were recorded: the disposals of Signature Limited and Emballagen in the Environment division, and the disposal of the trucks operations in the Automotive division.
4. The revenue per region breaks down as follows: Europe (including Africa), North America, South America and Asia.

Appendix – 3^rd quarter 2017 revenue

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 and its joint ventures have 32,000 employees across 124 plants, 23 R&D centers and 31 countries worldwide, serving 74 automotive brands. 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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