2023 Annual results

Levallois, February 22, 2024, 7:00 AM CET

Strong 2023 performance 

Revenue^a) at a record high of €11.4 billion, with strong +20% growth vs. 2022

Operating margin and free cash flow above adjusted targets

Exceptional 2023 order book confirming dynamic future growth and demonstrating the relevance of our offer

Continuation of the strategic roadmap and a sharp improvement  in lighting business profitability

•       2023 economic revenue^a) of €11.4 billion, up significantly by +20.3% (+13.4% organic growth^c)), outperforming annual global automotive production ^j) by +3.7 points, in-line with Group target. Consolidated revenue^b) exceeds €10 billion for the first time in Plastic Omnium’s history.

•       Operating margin^d) of €395 million, up +€31 million, driven by more sustained activity levels in 2023 than 2022, good cost control in an ongoing high-inflation environment and a marked improvement in the lighting business margin.

•       Robust net result, Group share of €163 million and a proposed dividend of €0.39 per share, stable compared to 2022.

•       Strong free cash flow^g) generation of €227 million, above the adjusted target of between €190 and €210 million, including controlled investments of 4.7% of revenue^b).

•       Further reduction in Group debt to net debt^h) of €1,540 million and a net debt/EBITDA ratio of

1.7x at December 31, 2023.

•       Excellent commercial momentum reflected by a record order intake in 2023 and including in particular major order intakes in the first half of the year.

•       A change in Group segment reportingⁱ⁾ enabling the contribution of the Group’s different businesses to be better assessed through the Exterior Systems, Powertrain, and Modules segments. 

•       Continued roll-out of the carbon neutrality roadmap with a -20% decrease in CO₂ emissions (scopes 1 & 2) compared to 2019^[1] (baseline for our commitments), and the recognition, by CDP, of our climate commitment with the grant of the highest “A” rating.

Outlook

•       In a market expected to decline slightly in 2024 (estimated at -0.7% by S&P^j)), Plastic Omnium aims to outperform global automotive production^j) and improve all its financial aggregates (operating margin^d), net result Group share, free cash flow^g) and net debt^h)) compared to 2023, with a controlled increase in investments.

•       To support future growth, Plastic Omnium also aims to improve its cost structure to become more competitive, by adapting its industrial capacities to changes in production and pooling its resources.

Laurent Favre – Chief Executive Officer of Compagnie Plastic Omnium SE stated:

“With record revenue of €11.4 billion in 2023, Plastic Omnium crossed the symbolic €10 billion mark, highlighting the Group’s solid operating performance. As our historical activities confirm their leadership, the hydrogen business continues to ramp up industrially and commercially and the lighting business has significantly improved its profitability while achieving major commercial successes. Our exceptional order book demonstrates the relevance of our technological offer for all types of mobility and the confidence of our customers. At the same time, the Group is transforming to support market growth by adapting its industrial facilities and pooling its functional resources in each of its key regions. I would like to pay tribute to the remarkable commitment of the teams who deploy our strategic roadmap daily and are working to reduce our CO₂ emissions. CDP rewarded these efforts with the highest rating for our climate action. In a market expected to contract slightly in 2024, Plastic Omnium aims to improve its financial performance and continue deleveraging.”

2023  full-year results

The Board of Directors of Compagnie Plastic Omnium SE, chaired by Mr. Laurent Burelle, met on February 21, 2024, and approved the consolidated financial statements for the year ended December 31, 2023. 

The consolidated financial statements have been audited. An audit report will be issued after verification of the management report and compliance with the European Single Electronic Format.

Change in Plastic Omnium segment reporting

The Group has adapted its segment reporting to reflect Plastic Omnium's strategic roadmap. This new presentation allows for a better assessment of the contribution of the Group’s various businesses and breaks down as follows: 

-           Plastic Omnium Industries is replaced by: o Exterior Systems, which includes the Intelligent Exterior Systems and Lighting divisions.

o Powertrain, which brings together the Clean Energy Systems (energy storage and emission reduction systems, battery packs and electrification systems) and New Energies (hydrogen activity) divisions;

-           The Plastic Omnium Modules scope is unchanged and includes module design, development, and assembly activities.

2022 figures are presented using this new segment reporting basis.

Strong revenue growth of +20% in 2023 

The strong +20.3% growth in economic revenue^a) (+13.4% LFL^c)) compared to 2022, reflects good industrial production momentum and the high Group order intake in recent years.

•       Exterior Systems: Economic revenue^a) increased +32.5% (+16.6% LFL^c)) compared to 2022, thanks to the robust performance of the Intelligent Exterior Systems division, which benefited from a recovery

in production, fewer supply chain issues and five more launches in 2023 than 2022. The Lighting division reported a full year’s revenue, which was stable in 2023 compared to 2022 proforma figures.

•       Modules: economic revenue^a) rose +20.6% (+18.2% LFL^c)) compared to 2022, with particularly strong volume growth in Europe. After robust growth in the first half of 2023, linked to a recovery in activity following the impact of the conflict in Ukraine, activity was particularly marked in the second half of 2023, by more frequent assembly line stop&go. In addition, fourth quarter activity enjoyed the initial benefits of the first modules assembled at the new Austin plant in Texas to meet the historic order from a major American player in electric mobility.

•       Powertrain: economic revenue^a) increased slightly by +0.8% (+3.7% LFL^c)) compared to 2022, boosted by the performance of the Clean Energy Systems division which maintained activity levels similar to 2022, consolidating its leading position and confirming the relevance of the Group’s strategy in the fuel tanks and emission reduction systems production market. In addition, the New Energies division benefited from revenue generated by its EKPO joint venture and initial sales of hydrogen tanks in China by its PO-Rein joint venture.

Consolidated revenue^b) is up +20.8% (+13.4% LFL^c)) compared to 2022. After strong growth of +35.0% in the first half of the year alongside an accelerated recovery in production, the second half of 2023 saw growth of +8.7%, in a market impacted by lower-than-expected production volumes for electric vehicles at traditional manufacturers, and the strike in the United States. In addition, consolidated revenue^b) included a scope effect of €857 million, tied to the consolidation of Varroc Lighting Systems, AMLS Osram, Actia Power and PO-Rein, as well as a currency effect of -€201 million, notably on the US dollar, the Argentine peso and Chinese renminbi. 

In a market up +9.7%, Plastic Omnium outperformed automotive production by +3.7 points in 2023

According to S&P Global Mobility ^j), global automotive production increased by +9.7% in 2023, in a context disrupted by slowdowns in the production chain and the strike in the United States by the United Auto Workers Union at the end of the second half of 2023. In 2023, automotive production ^j) increased by +7.8 million vehicles compared to 2022 to reach a total of 87.6 million. In this context, Plastic Omnium reported strong growth in 2023, outperforming the market by +3.7 points, in-line with its annual target.

•       In Europe, economic revenue^a) totaled €5,835 million, up significantly by +27.0% compared to 2022 (+16.4% LFL^c)), outperforming global automotive production ^j) by +4.2 points. The Group’s performance was mainly fueled by a strong recovery in Germany, particularly in the Intelligent Exterior Systems division, with three launches in the fourth quarter. In addition, to support growth in the Modules business in 2023, the Group opened two new assembly sites in Eastern Europe.

•       In North America, economic revenue^a) amounted to €3,150 million, supported by three more production starts in the Intelligent Exterior Systems division than in 2022. Revenue^a) increased +16.1% (+10.8% LFL^c)) compared to 2022, in-line with the market. Activity in North America was also impacted by the strike by the United Auto Workers Union, leading to production line stop&go, mainly in the fourth quarter of 2023. In addition, in the fourth quarter of 2023, the Group enjoyed the benefits of the first modules assembled at the new Austin plant in Texas to meet the historic order from a major American player in electric mobility.

•       In China, the Group posted economic revenue^a) of €1,048 million in 2023, down -4.5% (+0.5% LFL^c)) yearon-year and -9.7 points compared to the market. Market growth was mainly driven by battery electric vehicle production, which increased its market share from 20.7% in 2022 to 22.6% in 2023, and by local players who posted growth of +27% in 2023 versus 2022. This impacted Modules and Clean Energy Systems which primarily equip European and American manufacturers. Plastic Omnium further strengthened its exposure in the region with YFPO, the joint venture with Yanfeng, which recorded LFL^c) revenue growth in-line with market growth of +10.2%.

•       In Asia excluding China, Group economic revenue^a) totaled €907 million in 2023, up +24.6% year-on-year (+16.1% LFL^c)), outperforming automotive production ^j) by +7.5 points. The region is driven by the good performance of the Clean Energy Systems division, particularly in South Korea and India, in a market that benefits the hybrid vehicle segment in particular. In addition, the Modules business continued its strong growth in South Korea through the SHB joint venture.

Marked rise in operating margin^d) tied to strong revenue growth and cost control

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In 2023, the Group’s operating margin^(d) amounted to €395 million compared to €364 million in 2022, up +8.6% or €31 million.

2023 was marked by high inflation, focused mainly on energy and wages. In this context, the Group successfully limited this impact by concluding discussions with automotive sector players. In addition, Plastic Omnium managed to contain the increase in labor costs which remain below 17% of revenue^b), up slightly by +0.4 points compared to 2022, highlighting productivity gains achieved.

The Exterior Systems operating margin^d) amounted to €241 million in 2023, representing 5.0% of revenue^b), a solid +48.5% increase year-on-year. This performance is explained by excellent activity levels at Intelligent Exterior Systems and a clear improvement in Lighting division profitability, which enjoyed the initial rewards of the action plan implemented by the Group.

The Modules operating margin^d) amounted to €44 million in 2023, i.e. 1.6% of revenue^b) down -0.4 points vs. 2022. The fall in the operating margin rate is due to lower volumes in the second half of the year, linked to significant delays for electric vehicles launches. In addition, the activity was impacted by the cost of launching new sites in Eastern Europe and North America, with the initial positive effects expected in 2024.

The Powertrain operating margin^d) amounted to €118 million in 2023, i.e. 4.4% of revenue^b). Internal Combustion Engine (ICE) activity within the Clean Energy Systems division continues to record a highly satisfactory margin rate, the largest of the Group’s divisions, despite a market that is gradually moving toward more electrification. Hydrogen and electrification activities, meanwhile continue to grow gradually, with investment in skills, commercial engineering, R&D and industrial capabilities, in-line with the Group’s strategic roadmap. 

Robust net result absorbing the impact of interest rate increases

Net result, Group share is €163 million (1.6% of consolidated revenue^b)). In a context of Group transformation, the 2023 net result remains robust at a level comparable to 2022, and includes:

-           The improvement in the operating margin, partially offsetting the increase in financial expenses in an environment of high interest rates;

-           Other operating income and expenses of €64 million, stable compared to 2022, mainly including reorganization costs and currency effects;

-           An income tax expense of €63 million in 2023, or 0.6% of revenue^b), down -10 basis points compared to 2022. The effective tax rate is 33.5% in 2023. 

Free cash flow of €227 million, above the adjusted target of €190 million to €210 million

EBITDA^e) amounted to €900 million in 2023, representing 8.7% of revenue^b) compared to €864 million and 10.1% of revenue^b) in 2022, in-line with increased activity during the year.

Plastic Omnium pursued its investment policy in 2023, aimed at supporting its value proposition and fostering future growth. To this end, Group investments^f) totaled €482 million compared to €351 million in 2022. This amount includes, in particular, as part of the Group’s deleveraging policy, real estate disposals of €54 million on the sale of sites in Belgium and Brazil. 

These investments^f) represented 4.7% of revenue^b), fully in-line with the Group’s target of maximum annual investment of 5% of revenue^b). In 2023, they include investments of full year basis made by the lighting and electrification divisions. In addition, the Group made additional investments focusing primarily on the development of the hydrogen business in-line with the significant growth in the order book, as well as on the very rapid development of a module assembly plant in Austin, Texas to meet the historic order for a major American player in electric mobility.

The change in working capital requirement was +€61 million in 2023, vs. -€72 million in 2022. The increased activity in 2023 was more than offset by better inventory management reflected by a reduction in inventories equivalent to two days of revenue^a). In addition, the Group is already enjoying the initial rewards of the action plan implemented in the Lighting division, with a decrease in trade receivables to a level similar to the other divisions.

Free cash flow^g) totaled €227 million, or 2.2% of revenue^b) a decrease of -6.4% compared to 2022 (€243 million, or 2.8% of revenue^b)) reflecting the investments required for the roll-out of the strategic roadmap. All of the Group’s historical divisions, Intelligent Exterior Systems, Clean Energy Systems and Modules, generated free cash flow well above 2019 levels.

A financial structure that remains strong and declining debt

At December 31, 2023, Group net debt^h) totaled €1,540 million compared to €1,669 million at December 31, 2022. Plastic Omnium maintains leverage of 1.7x EBITDA at the end of December2023 vs. 1.9x EBITDA at the end of December 2022. 

The Group is reducing debt while pursuing its investments policy in the growth drivers. At December 31, 2023, the Group has liquidities of €2.3 billion, comprising €475 million in available cash and €1.8 billion in confirmed, undrawn credit facilities, with an average maturity of 3 years and no covenants. In 2023, the Group repaid the remaining €159 million outstanding on the 2016 €300 million Schuldschein facility, following an initial repayment in May 2022.

Dividend proposal of €0.39 per share 

The Board of Directors will propose a dividend of €0.39 per share at the General Meeting of Shareholders on April 24, 2024. The dividend will be paid on May 3, 2024, after approval by the General Meeting.  

Plastic Omnium continues its strategy to support developments in mobility

Record 2023 order book, confirming the relevance of our offer with customers

In 2023, Plastic Omnium recorded a significant increase in order levels compared to 2022, including an exceptional order intake at the beginning of the year. Orders were secured across all Group activities and regions, in-line with its ambition to diversify its geographic footprint. Orders secured outside Europe represented nearly 60% of total orders.

Plastic Omnium also pursued its customer diversification strategy, benefiting from the increasing electrification of the car fleet with more than 50% of its order book for electric vehicles. In this respect, the Group recorded a historic order for front-end and cockpit modules from a major American player in electric mobility. New Energies, meanwhile, recorded an order worth over €2 billion, mainly in the commercial and heavy mobility segment in the United States.

Clean Energy Systems continues to post record order levels thanks to its position as a leading manufacturer of energy and pollution control systems, including a major order intake in North America in the first quarter of 2023. At the same time, to adapt to the gradual slowdown in the internal combustion market in Europe, Clean Energy Systems announced the rationalization of its production sites. Finally, the division won several orders allowing it to remain confident on its ambition to reach a market share of 30% of its addressable market by 2028.

Success of the first year of integration of the Lighting division and its transformation plan

As part of the action plan implemented for the Lighting division, Plastic Omnium focused its efforts on optimizing resources and improving industrial performance. The Group has thus reduced the costs of  non-quality of products, as well as of inventories which fell by more than 30% between the end of 2022 and the end of 2023. In addition, the Group adapted its resources to production volumes and thus optimize its costs. 

The Group is now well positioned in calls for tenders as the commercial successes of 2023 show. The order book stands at €1.6 billion in the first-year post-acquisition, reflecting the high level of customer confidence and ensuring the lighting business’ future momentum.

In addition, Plastic Omnium is leveraging its expertise and innovation recognized in 2023 through:

-          An CES 2024 Innovation Award in the “In-Vehicle Entertainment” category for its dynamic interior dashboard light animation projection system, deployed in the new electric MINI Cooper;

-          The 2024 German Design Award for its innovative dynamic welcome light projection system.

In 2024, the Lighting division will continue vertical integration in the manufacturing sector, focusing on  in-house electronics production to better control the entire value chain and rationalize production capabilities. The division will also pursue its “design to cost” and quality control strategy, as well as improving the standardization of products and processes.

These initiatives should enable the Lighting division to achieve a level of profitability in-line with that of the Group in the medium term.

Confirmation of the Group’s ambition in hydrogen

Plastic Omnium continued to invest in hydrogen mobility in 2023, adapting its investments to the steady rampup of volumes in Europe, Asia, and North America. 

In this context, the Group has intensified industrial momentum, launching the construction of a mega-plant for high-pressure hydrogen tanks in Shanghai as part of the PO-Rein joint venture. Scheduled to be operational in 2026, the new plant will produce up to 60,000 high-pressure hydrogen tanks annually for the Chinese commercial vehicle market. This plant strengthens Plastic Omnium’s production capacity in Shanghai, where the Group already has its first hydrogen tank production plant, operational since 2024.

In addition, the Group launched the construction of a mega-plant in France, which will be operational in 2025. With an annual capacity of 80,000 hydrogen tanks, the plant will mainly supply Stellantis and HYVIA. 

Thanks to an order book approaching €4 billion, its presence across the entire value chain and its industrial capacities in Europe, the United States, South Korea and China, New Energies is a major hydrogen player. These assets strengthen the Group’s ability to reach its New Energies revenue target of €3 billion by 2030.

Accelerating digital transformation with OP’nSoft, an embedded software development entity

To support the transformation of its product portfolio and support an increasingly electric, connected, and autonomous mobility offer, OP’nSoft has been involved in many electrification, hydrogen, driver assistance systems and lighting projects across all divisions of the Group since its creation in early 2023.

OP’nSoft has reached a key milestone by developing the software embedded in Plastic Omnium products. In 2023, the new entity delivered its first software solutions with demonstrators to primarily control and enable dialogue between the components of a 150 kW fuel cell system, manage batteries and inverters and process data collected by cameras and sensors integrated in external systems and modules, as well as for pollution control systems and lighting components. 

OP’nSoft presented innovations from partnerships with Sonatus and Paravision at CES 2024. OP’nSoft will consolidate its activity in 2024 to confirm the Group’s position in embedded software.

Ongoing strategic initiatives to Improve the carbon footprint 

2023, in-line with our commitments and confirmation of progress in the historical scope

Plastic Omnium continued to deploy its carbon neutrality plan to achieve the objectives recognized by the Science-Based Targets initiative (SBTi) as aligned with those of the Paris Agreement: 

-           Carbon neutrality of scopes 1 & 2 by 2025^[4] (emissions related to operations, e.g. gas and electricity consumption);

-           30% reduction in upstream and downstream scope 3 emissions in 2030 compared with 2019; -         Neutrality of all scopes by 2050.

CO₂ emissions across all operations and the value chain of the Group’s historical scope (excluding Lighting) total 29.9MtCO₂eq, a decrease in the footprint of -1.3% compared to 2022 and -30.2% compared to 2019.

Effective roll-out of the roadmap

Reduce: 10.2% improvement in energy efficiency in one year  

While historical scope revenue grew between 2022 and 2023, energy consumption remained stable. This progress is attributable to multiple transversal actions deployed within Plastic Omnium. The Group launched an energy efficiency awareness campaign and an internal program to reduce electricity consumption supplemented by digitalization projects. In 2023, these actions helped improve energy efficiency^[5] by 10.2% in one year and 20.9% compared to 2019.

During this period, scope 1 & 2 CO₂ emissions increased by 6.8% due to activity growth and the energy mix in the countries where the Group operates. Nevertheless, these emissions remain 19.7% below 2019 levels, the baseline for our environmental commitments.

Replace: 10 new sites equipped with photovoltaic panels and signature of a renewable energy contract covering 50% of electricity needs in France  

The Group is strengthening its renewable energy supplies. In 2023, photovoltaic panels were installed at 10 new sites, increasing the total number of sites equipped with solar panels or wind turbines to 23. Whereas no energy was produced on-site in 2019, Plastic Omnium successfully produced over 2% of its electricity directly on-site this year.

Plastic Omnium also continued its physical or virtual PPA (Power Purchase Agreement) program to decarbonize a large part of its needs in Europe and North America. In September 2023, the Group signed a contract that will cover nearly half of its French electricity needs by 2025, using low-carbon electricity supplied by EDF Renouvelables. The renewable electricity will be produced by five photovoltaic power plants developed, built, and operated in France by EDF Renouvelables and its subsidiary Luxel. Other major contracts are being finalized.

Collaborate: Scope 3 emissions reduced by 1.4% compared to 2022

Thanks to the electrification of the automotive market and Plastic Omnium’s growth strategy in low-carbon mobility, scope 3 emissions downstream of the historical scope fell by 3.3% (to almost 1 million tons of CO₂) in a context of strong revenue growth.    

However, upstream scope 3 CO₂ emissions increased by more than 19.3%, mainly due to growth in product and service purchase quantities. This trend confirms the determination of providing greater support to suppliers in their transition to carbon neutrality.

Inclusion of the Lighting division's CO₂ emissions in the Group's carbon footprint

The Group’s 2022 acquisitions are included in the carbon neutrality roadmap and reporting. Group emissions for the year, excluding joint ventures, therefore total 33.4MtCO₂eq. This +10.3% increase exceeds revenue growth.

The Group aims to achieve scope 1 & 2 carbon neutrality for these entities in 2027. The target 30% reduction in upstream and downstream scope 3 emissions in 2030 versus 2019 is maintained, with a review to the 2019 baseline, increasing it by 47.2MtCO₂eq. 

Commitments recognized by numerous non-financial rating agencies

The Group’s ESG commitments were once again rewarded by non-financial rating agencies, notably through:

-           Recognition of the Group’s commitment to the climate with the award, for the first time, of the highest CDP rating, with an increase from “A-” to “A”;

-           The renewal, by EcoVadis of its Platinum status for the third year in a row. The rating of 80/100 allows it to maintain its ranking in the top 1% of companies assessed;

-           An improvement in its ISS ESG rating from “C” to “C⁺”, making it one of the leaders in its industry.

Lastly, Plastic Omnium was included in the Euronext CAC SBT 1.5 index on its launch in January 2023. This index only includes SBF 120 companies whose decarbonization trajectory is aligned with the Paris Climate Agreement.

Group Outlook 

In 2024, the automotive production market is expected to decline slightly, by an estimated -0.7% according to S&P ^j), in an environment marked by a more gradual transition to decarbonized mobility than expected, an uncertain inflationary environment and interest rates that should remain high.

Driven by a very solid order intake in recent years, reflecting the renewed commitment of its customers, Plastic Omnium aims to outperform global automotive production^j) in 2024.

Furthermore, the Group aims to improve all its financial aggregates (operating margin^d), net result Group share, free cash flow^g) and net debt^h)) compared to 2023, with a controlled increase in investments.

Finally, Plastic Omnium will continue to roll-out its strategic projects while remaining focused on its operational management through:

-           The continuation of the transformation plan, with particular attention to improving the cost structure to increase competitiveness and efficiency;

-           As in previous years, the Group will operate with agility and flexibility by strengthening synergies between the divisions through the pooling of resources and functions, while adapting industrial capacities to forecast customer volumes.

Webcast of the 2023 full-year results presentation

Compagnie Plastic Omnium SE’s 2023 full-year results will be presented during a webcast on Thursday, February 22, 2024, at 9:00 am (CET).

To follow the Webcast, please click on the following link:

https://channel.royalcast.com/landingpage/plastic-omnium-en/20240222_1/

If you wish to access the conference call, simply dial one of the following access numbers (English language only) and provide the operator with the code Plastic Omnium.

•       France: +33 (0) 1 7037 7166

•       UK: +44 (0) 33 0551 0200

•       USA: +1 786 697 3501

This press release is published in English and French. In the event of any discrepancy between these versions, the original version written in French shall prevail.

The press release, the slideshow, and the consolidated financial statements including the notes are available on the websitewww.plasticomnium.com.

Calendar

•      April 23, 2024: Q1 2024 revenue

•      April 24, 2024: Shareholders’ General Meeting

•      July 23, 2024: 2024 half-year results

•      October 28, 2024: Q3 2024 revenue

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About Plastic Omnium 

Plastic Omnium is a world-leading provider of innovative solutions for a unique, safer and more sustainable mobility experience. Innovation-driven since its creation, the Group develops and produces intelligent exterior systems, customized complex modules, lighting systems, clean energy systems and electrification solutions for all mobility players.

With €11.4 billion economic revenue in 2023 and a global network of 152 plants and 40 R&D centers, Plastic Omnium relies on its 40,300 employees to meet the challenges of transforming mobility.

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).

www.plasticomnium.com

Contacts:

Glossary

a)  Economic revenue corresponds to consolidated revenue plus revenue from investments, by controlled subsidiaries, in joint ventures and associates consolidated at their percentage holding: BPO (50%) and YFPO (50%) for Exterior Systems, EKPO (40%) for Powertrain and SHB (50%) for Modules since December 2022.

b)  Consolidated revenue does not include the Group’s share of revenue from joint ventures, consolidated using the equity method, in accordance with IFRS 10-11-12.

c)  Like-for-Like (LFL): at constant scope and exchange rates

i.              The currency effect is calculated by applying the exchange rate of the current period to the revenue of the previous period. In 2023, it amounted to -€279 million for economic revenue and - €201 million for consolidated revenue.

ii.             The scope effect on economic revenue is €968 million for the period. It includes the consolidation of AMLS Osram since July 1, 2022, Actia Power since August 1, 2022, Varroc Lighting Systems since October 7, 2022, SHB Automotive Modules, in which the Group increased its stake from 33% to 50% since December 12, 2022, and PO-Rein since April 28, 2023. 

d)  Operating margin includes the Group’s share of income from companies consolidated using the equity method and amortization of intangible assets acquired, before other operating income and expense.

e)  EBITDA corresponds to operating income, which includes the Group’s share of income from associates and joint ventures, before depreciation, amortization, and operating provisions.

f)   Investments comprise expenditure on property, plant and equipment and intangible assets, net of disposals.

g)  Free cash flow corresponds to operating cash flow less expenditure on property, plant and equipment and intangible assets net of disposals, taxes and net interest paid, plus or minus the change in the working capital requirement.

h)  Net debt includes all long-term borrowings, short-term loans, and bank overdrafts less loans, marketable debt instruments and other non-current financial assets, and cash and cash equivalents.

i)    The Group has adapted its segment reporting to reflect Plastic Omnium's strategic roadmap. This new presentation allows for a better assessment of the contribution of the Group’s various businesses and breaks down as follows:

-          Plastic Omnium Industries is replaced by: o Exterior Systems, which includes the Intelligent Exterior Systems and Lighting divisions.

o Powertrain, which brings together the Clean Energy Systems (Energy and pollution control systems and batteries and electrification systems) and New Energies (hydrogen business) divisions;

-          The Plastic Omnium Modules scope is unchanged and comprises module design, development, and assembly activities.

i) Global or regional automotive production data refer to the S&P Global Mobility forecasts published in February 2024 (<3.5-ton passenger car segment and commercial light vehicles).

Disclaimer

The information contained in this document (the “Information”) has been prepared by Compagnie Plastic Omnium SE (the “Company”) solely for informational purposes. The Information is proprietary to the Company. This presentation and its contents may not be reproduced or distributed or published, directly or indirectly, in whole or in part, to any other person for any purpose without the prior written permission of the Company.

The Information is not intended to and does not constitute an offer or invitation to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Nor does it constitute an endorsement or advice regarding investment in any security and is in no way to be interpreted as an offer to provide, or solicitation with respect to, any securities-related services of the Company. This presentation consists of information provided in summary form and does not purport to be complete. This communication is neither a prospectus, product disclosure statement or other offering document for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017, as amended from time to time and implemented in each member state of the European Economic Area and in accordance with French laws and regulations.

This presentation contains certain projections and forward-looking statements. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union. These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Company believes these statements to be based on reasonable assumptions. These forward-looking statements are subject to various risks and uncertainties, including matters not yet known to the Company or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, the geopolitical environment (including the ongoing Russo-Ukrainian military conflict), overall trends in general economic activity and in the Company’s markets in particular, regulatory and prudential changes, and the success of the Company’s strategic, operating and financial initiatives.

Other than as required by applicable law, the Company does not undertake any obligation to update or revise any forward-looking information or statements, opinion, projection, forecast or estimate set forth herein. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Company when considering the information contained in such forward-looking statements. Persons receiving this document should not place undue reliance on forward-looking statements. To the maximum extent permitted by law, neither the Company nor any of its affiliates, directors, officers, advisors and employees shall bear any liability (in negligence or otherwise) for any direct or indirect loss or damage which may be suffered by any recipient through use or reliance on anything contained in or omitted from this document and the related presentation or any other information or material arising from any use of these presentation materials or their contents or otherwise arising in connection with these materials.

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