INTEGRATED REPORT 2022
CONTENTS DRIVING A NEW GENERATION OF MOBILITY MESSAGE FROM THE CHAIRMAN, LAURENT BURELLE A TECHNOLOGY COMPANY SUPPORTING ALL MOBILITIES LAURENT FAVRE, CHIEF EXECUTIVE OFFICER TECHNOLOGY: CREATING OPPORTUNITIES FÉLICIE BURELLE, MANAGING DIRECTOR THE GROUP IN BRIEF SOLID, WELL-BALANCED FINANCIAL AND NON-FINANCIAL PERFORMANCE GOVERNANCE THAT SETS THE COURSE BOARD OF DIRECTORS PREVENTING AND MANAGING RISKS A MANAGEMENT TEAM THAT SETS THE PACE EXECUTIVE COMMITTEE 2022 HIGHLIGHTS UNVEILING THE STATEMENT OF PURPOSE A MODEL REINVENTED TO TRANSFORM MOBILITY BUSINESS MODEL INSPIRED MOBILITY SOLUTIONS FOR ALL MOBILITIES FÉLICIE BURELLE, MANAGING DIRECTOR AT THE FOREFRONT OF TRANSFORMATIONS IN MOBILITY CONNECTIVITY AND LIGHTING ELECTRIFICATION AND SOFTWARE TECHNOLOGICAL MOBILITY TECHNOLOGY LEVERAGING ENERGY TRANSITION ALEXANDRE CORJON AND CHRISTIAN KOPP COMBINING EVERY TECHNOLOGY COVERING THE ENTIRE HYDROGEN VALUE CHAIN COMMITTED MOBILITY NON-FINANCIAL PERFORMANCE ACCELERATES TRANSFORMATION DAVID MENESES AND LÉA DUNAND-CHATELET THE PIVOTAL PROGRAM IN OUR CLIMATE STRATEGY ACT FOR ALL™ TOGETHER LEADING A NEW GENERATION OF MOBILITY PROGRESSING TOWARD CARBON NEUTRALITY 04 06 08 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50
DRIVING A NEW GENERATION OF MOBILITY 3
LAURENT BURELLE Chairman of the Board of Directors DRIVING A NEW GENERATION OF MOBILITY
What a year! 75 years after it was founded, Plastic Omnium is reinventing itself. With roots stretching back to 1875 when the UMDP* collected household waste and manufactured paint, varnish and fertilizer, in 1946 Plastic Omnium became a leading global supplier of fuel tanks, body panels and modules to the automotive industry. Fully committed to a transition to connected electric mobility, 2022 saw our Group massively ramp up our activities in the fields of lighting, electronics, software and digital technologies. Our shareholders and Board of Directors gave their backing to an impressive program of future-facing industrial investments in environmentally responsible and electric mobility. It was also a year when we broadened our range of new products and innovative skills in lighting, electric mobility and electronics. These investments and acquisitions in technologies for tomorrow’s mobility mean that in the years ahead we will generate a significant proportion of our revenue from activities that align with our environmental commitments. This transformation is rooted in the industrial excellence of our divisions and traditional products which, thanks to the profitability they generate and their appeal on the market, make it possible for us to explore new technologies and develop the products and services of the future. My warmest thanks to all our employees, the women and men whose efforts on all these fronts give us the confidence to project ourselves into the future. Our current financial solidity is a result of our traditional activities, which give us the resources needed to follow an independent strategy and make long-term investments in emerging technologies for the future. With backing from highly committed family shareholders who hold a majority stake, Plastic Omnium benefits from a united, international management team that is fully focused on the mobility of the future. As born entrepreneurs, we know the direction we must head in and we will support the actions of the new generation at the helm as they continue to ensure that Plastic Omnium is a responsible and profitable leader, delivering sustainable long-term growth. LAURENT BURELLE Chairman of the Board of Directors *UNION MUTUELLE DES PROPRIÉTAIRES LYONNAIS 5
Looking back, how did Plastic Omnium perform in 2022? Plastic Omnium recorded strong growth in an unpredictable geopolitical, energy and public health environment, with economic revenue up to €9.5 billion. Our Group outperformed its key markets, particularly in Europe, despite a shrinking overall market. This growth is primarily thanks to a number of excellent commercial successes across our Business Segments lines. In particular, we stepped up our commercial push into the hydrogen market, winning major contracts with Safra, Stellantis and Hyvia in France and Ford in the USA. Our recent acquisitions in lighting and electrification have further strengthened our growth and value creation profile. We have also reached a milestone in our innovation policy, with the launch of OP’nSoft, our own software house focused on embedded software solutions. And we continue to work resolutely on delivering our carbon neutrality roadmap and are ramping up the share of renewable energies in our energy mix. What is the idea behind the Group’s purpose, unveiled in May 2022? Faced with an industry undergoing far-reaching transformation, the Group took an in-depth look at our strategy and how we see our markets. Our purpose, Driving a New Generation of Mobility, is the result. It projects the Group into the future, with a powerful PLASTIC OMNIUM, A TECHNOLOGY COMPANY SUPPORTING ALL MOBILITIES “Our purpose projects the Group into the future, with a powerful commitment to a mobility that is more sustainable, intelligent and connected.” LAURENT FAVRE Chief Executive Officer
“We have invested heavily to make sure we are in a position to meet our customers’ new requirements, such as in lighting and electrification technologies. Very few groups of our size were as active as us or invested as heavily as we did in 2022.” Plastic Omnium continued to deliver on its strategic roadmap in 2022, despite the invasion of Ukraine, inflation, and supply difficulties. The Group has consolidated its new positioning, backing it with a strategy focused on well-timed acquisitions. How are you making this transformation a reality? We have invested heavily to make sure we are in a position to meet our customers’ new requirements, such as in lighting and electrification technologies. Very few groups of our size were as active as us or invested as heavily as we did in 2022. Plastic Omnium is expanding and growing stronger, thanks to the creation of a new Lighting division following two strategic acquisitions and the complete integration of all the HPBO modules. Our goal is also to offer actors from the heavy mobility sector a complete energy line-up of battery packs and power electronics. Then there is the dedicated software organization, OP’nSoft, we have set up to speed up software development and facilitate its integration into the majority of our products. What are the prospects for the short and medium term? We know where we are heading, and are already feeling the first benefits of our transformation. Our priority is to support our workforce, beginning with successfully onboarding 7,000 new people who joined us in our Lighting, e-Power and Modules businesses. We are also focused on recruiting the new talents the Group needs to underpin its future growth. During this period of high inflation, we have to be able to continue financing our future and supporting it by rolling out our new technologies and structures, and by innovating in electrification, 4D imaging radar and new sustainable and recyclable materials. By following this daring path, with the backing of our solid financial structure and our values as an entrepreneurial family-owned business, we will succeed in making the difference. commitment to a mobility that is more sustainable, intelligent and connected. And because the purpose reflects and acknowledges environmental and societal concerns, it also unites our entire 40,500 workforce around a common goal. The goal pursued by a Group determined to play a driving role in transforming mobility and in the energy transition. What are the key trends changing the face of mobility? Although they come in many different forms, all types of urban and intra-urban mobility are impacted by the rise of connectivity, active safety, and alternative energies. We live in a fast-changing world and Plastic Omnium is adapting to become a major partner to every actor in the mobility sector, providing them with technologies and services. Plastic Omnium’s role has shifted from supplier to the automotive industry to technology partner. We strongly believe that the energy transition will see several combinations of technologies working side by side. And we offer high-end solutions for these technology combinations. Trends in the industry are also changing how we behave as a business. As a responsible industrial group, we hold ourselves to the same high standards of sustainability throughout our business, applying them to how we operate our plants, design our product innovations, and look after the well-being of our employees. This is the true meaning of our ambitious sustainability roadmap. What is the Group’s strategy to make these new forms of mobility possible? Our roadmap centers on consolidating our leadership and diversifying our activities. We are focused on three areas: developing our product portfolio by growing our content and value per vehicle, generating a new profitable growth stream in electric mobility, connectivity and safety and, in the longer term, expanding our activities into services. These services might include recycling products, materials or electric cars maintenance. In 2030, 40% of our revenue will be generated by products not in our current product line-up, such as hydrogen, lighting and electrification. Historically, Plastic Omnium has always known how to anticipate new technologies and enter new markets. This remains very much the case today. 7
TECHNOLOGY: CREATING OPPORTUNITIES FÉLICIE BURELLE Managing Director INTELLIGENT EXTERIOR SYSTEMS By adding intelligent functions – lighting, sensors, etc. – and extending the scope of what is possible in terms of design, Plastic Omnium is making cars safer, smarter and more stylish. Body panels are now packed with technologies that improve the driver experience, safety and vehicle looks. The result? A trendy car that will, in time, be made largely from bio-sourced or recycled materials. “Plastic Omnium significantly extended its range of expertise in 2022, with acquisitions in lighting and electrification, as well as the complete integration of HBPO’s module business and the creation of OP’nSoft, a new structure dedicated entirely to software development. Leveraging these new activities in addition to its historical business lines, essential to the success of the energy transition, the Group now has a unique integrated line-up of solutions to meet all the needs of its customers for ever safer and more connected mobility.” FÉLICIE BURELLE
CLEAN ENERGY SYSTEMS Global leader in onboard energy storage and emission reduction systems*, Plastic Omnium develops solutions for every type of powertrain: fuel, diesel, hybrid, plug-in hybrid and allelectric. Driving the shift to decarbonized mobility, it is at the forefront of electrification with the acquisition of its e-Power business for developing onboard battery systems for hybrid and all-electric vehicles. NEW ENERGIES As the global benchmark in hydrogen mobility, the Group develops storage systems and solutions for all forms of hydrogen mobility: cars, trucks and trains. The business’ expertise covers a large portion of the value chain with high-pressure hydrogen storage solutions, fuel cell manufacturing, and an integrated hydrogen system that ensures onboard technologies operate correctly. LIGHTING Plastic Omnium’s new Lighting division strengthens its presence across the complete lighting value chain with a broad range of components and products, all the way up to complete headlight assemblies. The division designs interior and exterior lighting solutions to make cars even more comfortable and safer. By leveraging synergies between its lighting, bumper and frontend module businesses, Plastic Omnium offers its customers a unique portfolio of integrated products. MODULES This business develops, assembles and delivers complex and customizable modules for just-in-sequence production. HBPO, the global leader* now fully owned by Plastic Omnium, develops modules that are ever more integrated: front-end and cockpit modules, center consoles and charge LIDs. It leverages the opportunities created by new functions and vehicle architectures to develop new modules and services. *Source: internal study based on S&P Global Mobility data 9
ECONOMIC REVENUE €9.5BN PROFILE NORTH AMERICA 29% of revenue* 8 R&D centers 24 plants EUROPE 48% of revenue* 23 R&D centers 62 plants CHINA 12% of revenue* 4 R&D centers 38 plants ASIA (W/O CHINA) 8% of revenue* 7 R&D centers 16 plants *Economic revenue REST OF THE WORLD South America/Africa 3% of revenue* 1 R&D center 10 plants 10
5 ACTIVITIES INTELLIGENT EXTERIOR SYSTEMS CLEAN ENERGY SYSTEMS NEW ENERGIES MODULES LIGHTING 40,500 employees 43 R&D centers 150 plants 93 customer brands 28 countries 22 M bumpers produced every year 1 M tailgates produced every year 5 M front-end modules produced every year 18 M fuel tanks and emission reduction systems produced every year 1 in every 3 vehicles produced is equipped by Plastic Omnium* 1 in every 5 front-end modules produced is a Plastic Omnium* front-end module 1 in every 6 vehicles produced is equipped by Plastic Omnium* 1 in every 5 vehicles is equipped by Plastic Omnium* *Source: internal study based on S&P Global Mobility data 11
OUR PERFORMANCE DIVERSITY 31% WOMEN in the Group 23.2% WOMEN engineers and managers NON-FINANCIAL RATING ECOVADIS 80/100 Platinum status CDP CLIMAT A- RENEWABLE ENERGY 25.5 GWh produced at Plastic Omnium sites = 10,000 TONNES OF CO2 SAVED TAXONOMY 19% OF ECONOMIC REVENUE eligible for the climate change mitigation objective 200 SUSTAINABILITY AMBASSADORS volunteers committed to BOOSTING SUSTAINABILITY YOUTH TRAINING 1,204 interns, VIE and work-study trainees LOWER CO2 EMISSIONS Scopes 1 and 2: -9% Scope 3: -5% SAFETY FR2*: 0.78 (excl. Lighting) SUPPLIERS 95% OF GROUP PURCHASES evaluated as part of the "Know Your Suppliers" approach * Workplace accident rate frequency, with lost and non-lost time Plastic Omnium recorded a sizeable increase in revenue in 2022, outperforming the global automotive industry*. The year was marked by a strategy for sustained external growth and major new orders in hydrogen. The Group has managed its costs efficiently to combat rising prices, particularly for energy, while continuing to roll out its carbon neutrality roadmap. *Source: S&P Global Mobility automative production data, February 2023 12
NET DEBT €M 807 1 669 854 LIQUIDITY €BN NET DEBT/EBITDA 1.1 1.2 1.9 EXCL. 2022 ACQUISITIONS € FREE CASH FLOW €M 34 243 251 7.7 9.2 8.0 2020 2022 2021 OPERATING MARGIN €M ECONOMIC REVENUE €BN 7.7 9.5 8.0 EBITDA €M 771 648 864 OPERATING MARGIN €M 303 364 118 NET RESULT GROUP SHARE/€M - 251 168 126 118 303 416 FREE CASH FLOW €M 34 289 251 ECONOMIC REVENUE €BN 2.6 2.7 2.3 13
GOVERNANCE THAT SETS THE COURSE The sixteen members of Plastic Omnium’s Board of Directors have a range of complementary skills in the managerial, industrial, commercial, financial, and non-financial fields. Five of them are independent directors and another five are members of the Burelle family who founded the Group. Board members use their complementary experience and detailed knowledge of Plastic Omnium and its business environment to set the Group’s strategic objectives and oversee its activities. They provide insightful advice about the Group’s transformation and investments for the future, mindful always of social and environmental concerns. THE BOARD’S WORK IS SUPPORTED BY THREE SPECIALIZED COMMITTEES: AUDIT COMMITTEE APPOINTMENTS AND CSR COMMITTEE COMPENSATION COMMITTEE 57% women 61 average age 36% independent directors COMPAGNIE PLASTIC OMNIUM SE SHAREHOLDERS: 60% Burelle SA 38% Public 2% Treasury stock group savings scheme 14
*INDEPENDENT DIRECTOR PROF. DR BERND GOTTSCHALK Director since 2009 LAURENT FAVRE Chief Executive Officer of Compagnie Plastic Omnium SE. Director since 2020 LAURENT BURELLE Chairman of the Board of Directors of Compagnie Plastic Omnium SE. Director since 1981 FÉLICIE BURELLE Managing Director of Compagnie Plastic Omnium SE. Director since 2017 ANNE ASENSIO* Member of the Compensation Committee. Director since 2011 VINCENT LABRUYÈRE Member of the Audit Committee. Director since 2002 ELIANE LEMARIÉ Permanent representative of Burelle SA, member of the Appointments and CSR Committee. Director since 2009 ALEXANDRE MÉRIEUX* Chairman of the Compensation Committee. Director since 2018 ELISABETH OURLIAC* Director since December 2022 CÉCILE MOUTET Director since 2017 MARTINA BUCHHAUSER* Director since 2022 AMANDINE CHAFFOIS Director representing employees since 2019 ANNE-MARIE COUDERC Chairwoman of the Appointments and CSR Committee. Member of the Compensation Committee. Director since 2010 IRENEUSZ KAROLAK Director representing employees since 2019 PAUL HENRY LEMARIÉ Managing Director of Burelle Participations. Director since 1987 LUCIE MAUREL AUBERT* Chairwoman of the Audit Committee and member of the Appointments and CSR Committee. Director since 2015 JEAN BURELLE Director from 1970 to 2021. Non-voting board member since February 17, 2021. Honorary Chairman of Compagnie Plastic Omnium SE BOARD OF DIRECTORS AS AT DECEMBER 31, 2022 15
PREVENTING AND MANAGING RISKS In a world exposed to permanent crisis, Plastic Omnium is structured in a way that ensures it can anticipate and deal with all types of crisis. It implements preventive, scalable and responsive measures to manage each type of risk. Plastic Omnium combines responsibility with independent judgement and has three levels of actors in place to oversee risk control processes: OPERATIONAL DEPARTMENTS INTERNAL AUDIT GROUP FUNCTIONAL DEPARTMENTS 16
INTERNAL CONTROL AND COMPLIANCE COMMITTEE ROLE AND MISSIONS Identify risks associated with activities Apply applicable regulations Set out tangible policies and procedures Implement corrective actions required by internal audit ROLE AND MISSIONS Control and surveillance recommendations for action plans DIVISION BUSINESS UNIT (REGION) COUNTRY - ENTITY LEGAL & FINANCIAL COMPLIANCE SUSTAINABILITY RISK MANAGEMENT INFORMATION SYSTEMS HUMAN RESOURCES 2ND LINE OF CONTROL GROUP FUNCTIONS 3RD LINE OF CONTROL INTERNAL AUDIT EXECUTIVE MANAGEMENT AUDIT COMMITTEE BOARD OF DIRECTORS 1ST LINE OF CONTROL OPERATIONAL MANAGEMENT EXTERNAL AUDIT ROLE Coordinate the operation of internal control processes 17
A MANAGEMENT TEAM THAT SETS THE PACE The Executive Committee oversees the transformation of Plastic Omnium and ensures its social and environmental commitments are respected. In 2022, it reached several significant milestones on the pathway to reshaping a more diversified Group. Merging the human resources and sustainability departments is a clear signal of the increasingly central part that people play in Plastic Omnium’s strategy. Every member fully embraces the Group’s purpose: Driving a New Generation of Mobility. AS AT DECEMBER 31, 2022 RODOLPHE LAPILLONNE, SENIOR EXECUTIVE VICE-PRESIDENT – EXECUTIVE VICE-PRESIDENT PURCHASING PERFORMANCE . DAMIEN DEGOS, EXECUTIVE VICE-PRESIDENT PURCHASING PERFORMANCE . KATHLEEN WANTZ-O’ROURKE, GROUP CHIEF FINANCIAL OFFICER AND CHIEF INFORMATION OFFICER . CHRISTIAN KOPP, PRESIDENT AND CEO - CLEAN ENERGY SYSTEMS . STÉPHANE NOËL, PRESIDENT AND CEO - INTELLIGENT EXTERIOR SYSTEMS - ACTING PRESIDENT AND CEO - LIGHTING MARC PERRAUDIN, CHIEF EXECUTIVE OFFICER - NEW ENERGIES MARTIN SCHÜLER, PRESIDENT AND CEO - MODULES . CÉCILE CANET-TEIL, VICE-PRESIDENT COMMUNICATIONS . FÉLICIE BURELLE, MANAGING DIRECTOR . ALEXANDRE CORJON, EXECUTIVE VICE-PRESIDENT INNOVATION & SOFTWARE . LAURENT FAVRE, CHIEF EXECUTIVE OFFICER . VALÉRIE BROS, CORPORATE SECRETARY AND EXECUTIVE VICE-PRESIDENT LEGAL AFFAIRS DAVID MENESES, EXECUTIVE VICE-PRESIDENT PEOPLE & SUSTAINABILITY 19
2022 HIGHLIGHTS UNVEILING THE PURPOSE Driving a New Generation of Mobility expresses Plastic Omnium’s determination to play a driving role in transforming mobility and the energy transition. NEW LIGHTING DIVISION Acquisition of AMLS and VLS, together forming the new Lighting division that aims to emerge as a major player in automotive lighting. NEW E-POWER BUSINESS Acquisition of Actia Power, expert in heavy mobility battery systems, leading to the creation of our e-Power business, a further step forward in electrified mobility. SOFTWARE EXPERTISE Creation of OP'nSoft, a new cross-disciplinary activity focused on developing embedded software to offer our custumers unique integrated solutions and services addressing the growing role of software in vehicule design. INNOVATION CHALLENGE Launched in 2022, the Innovation Challenge leverages open innovation and collective intelligence to imagine the future of eco-designed vehicles. It rewarded the Smart Polymer Bumpers project, which extends vehicle lifetimes. 4D RADAR Plastic Omnium’s 4D imaging radar, developped with Greenerwave, won a PACEPilot award, which recognizes pre-commercial or post-pilot innovations in the field of future mobility. TWO INNOVATION AWARDS AT CES LAS VEGAS Two lighting projects were awarded in the run-up to CES Las Vegas in January 2023: dynamic welcome light projection, and the intelligent off-road mobility lighting system. 1ST PRE-DEVELOPMENT FOR THE FRUNK MODULE Plastic Omnium Modules is innovating with a redesign of the front trunk for electric vehicles. It offers several versions that incorporate functions for vehicle maintenance, battery operation and storage modules. The key concepts are functionality and customization. 20
WELCOME Over 7,000 new employees joined Plastic Omnium from Actia Power, AMLS and VLS. They all share the same passion for mobility. COMMITTED MANAGEMENT Creation of a unified human resources and sustainability department to combine and share the commitments common to these two functions. A development that highlights the central part people play in the Group’s strategy. AWARENESS-RAISING WITH ACT FOR ALL™ Held this year on November 15, the 4th annual ACT FOR ALL™ day was attended in 27 countries, helping to boost teams’ awareness of the program's three pillars. 1ST SUCCESS FOR THE LID MODULE A first order from a major US automaker for the innovative multi-functional charging LID module for electric cars. HYDROGEN BUSES Plastic Omnium won a contract to supply high-pressure hydrogen tanks and fuel cell systems to Safra, France’s leading manufacturer of hydrogen buses. BATTERY PACKS FOR HEAVY MOBILITY Battery pack integration for heavy commercial vehicles with Hyliko and for trains with Alstom. COMMERCIAL AVIATION EKPO received an order from Aerostack, its joint subsidiary with Airbus, for fuel cells to equip hydrogen-powered electric aircraft. 2022 was a year of accelerating change for a Group that demonstrated its robustness and ambition. Electrification, lighting, modules: Plastic Omnium is transforming itself and investing in the future. And the first successes are already here.
BUSINESS MODEL FOCUSED ON THE FUTURE 124 LAUNCHES IN 2022 27% of them for electric vehicles 16% OF ECONOMIC REVENUE* from electric vehicle solutions, +2 points vs. 2021 29% OF ECONOMIC REVENUE* FROM NORTH AMERICA, +3 points vs. 2021 OMEGA transformation program Plant competitiveness and digitalization for INDUSTRY 4.0 OPERATIONAL EXCELLENCE SUSTAINABILITY INNOVATIONS RESOURCES *Economic revenue excl. fuel systems 2,911 ENGINEERS 3.2% OF CONSOLIDATED REVENUE invested in R&D €376M INVESTED in hydrogen since 2015 2,309 PATENTS, EXCL. LIGHTING RESEARCH PARTNERSHIPS and Open Innovation-based partnerships with startups TECHNOLOGIES Merger of HUMAN RESOURCES AND SUSTAINABILITY DEPARTMENTS Climate objectives: CARBON NEUTRALITY scopes 1 and 2 in 2025 scopes 1, 2, 3 in 2050 COMMITTED PARTNERS: 95% of Group purchases evaluated as part of our "Know Your Suppliers" policy Programs: TOP PLANET - ACT FOR ALL™ SUSTAINABILITY AMBASSADORS POWERTRAIN Internal combustion Hydrogen Battery systems EXTERIOR SYSTEMS Lighting Global offer combining modules, bumpers and lighting OP'NSOFT Software developments for software-defined vehicles 22
FR2* (excl. Lighting) 0.78 90% OF SITES have a safety campaign 40,500 EMPLOYEES 1,204 INTERNS, VIE AND WORK-STUDY TRAINEES in 2022 81% OF SITES INVOLVED in local community outreach in 2022 PEOPLE PROFIT PLANET VALUE CREATION 93 CUSTOMER BRANDS ECONOMIC REVENUE €9.5Bn +9.7% vs. 2021 (like-for-like) EBITDA €864m vs. €771m in 2021 NET RESULT GROUP SHARE €168m vs. €126m in 2021 FREE CASH FLOW €243m vs. €251m in 2021 PROPOSED DIVIDEND €0.39 per share +39% vs. 2021 TAXONOMY: 19% of economic revenue eligible for the climate change mitigation objective 32% OF ELECTRICTY PURCHASED are from renewable sources 86% OF WASTE RECOVERED AND RECYCLED 13 SITES PRODUCE RENEWABLE ELECTRICITY photovoltaic panels, wind turbine 12 ADDITIONAL SITES in 2023 CDP: A- (CLIMATE QUESTIONNAIRE) ECOVADIS: 80/100 - PLATINUM STATUS * Workplace accident rate frequency, with lost and non-lost time 23
INSPIRED MOBILITY Plastic Omnium is accelerating its diversification with a range of integrated solutions providing high added value. The transformation of Plastic Omnium mirrors the transformation of mobility, as the Group becomes a technology partner supporting the shift to sustainable mobility. It designs solutions that are safe, clean and attractive with a high concentration of content per vehicle. It is expanding its activities to include lighting and electric mobility so it can respond to changing habits, offer a unique travel experience, and meet the challenges of energy transition. Electrification and connectivity mean that Plastic Omnium can incorporate more functions and components into its modules, which are increasingly intelligent, customized and stylish. Software, now omnipresent in bodywork panels, cockpits and center consoles, is a specialty in its own right. With the creation of OP’nSoft, the Group is ensuring it has the dedicated resources needed to develop software for embedded products, connected services and their updates. 25
“The energy transition, connectivity, active safety, and new uses are shaking up mobility.” FÉLICIE BURELLE Managing Director What are the key trends influencing today's mobility? Energy transition, connectivity, active safety and new uses are all game-changers. Across the world, the growing importance of software, regulatory momentum and the public’s desire for forms of mobility that are more environmentally responsible are combining to speed up the pace of transformation in our industry, a process that in turn creates new opportunities for us. This is the conviction that drove us to define a purpose, Driving a New Generation of Mobility, that symbolizes our strategic goals, expresses the meaning behind the Group’s transformation, and opens the door to new areas for us to explore. How are uses changing? They are changing extremely quickly, driven by what users expect and by innovations designed to cut the carbon footprint of mobility but also by energy prices, especially in Europe. The fast-moving rollout of new infrastructure and the local regulatory framework are two further factors that impact the nature and speed of these transformations. Cities are seeing the emergence of forms of mobility that are shared just as much as they are owned. Users everywhere are demanding mobility that is more environmentally responsible and affordable, and are adopting new types of behavior. This process is seen most clearly in the growth of e-mobility, which makes it possible to offer users new functions. For example, our "FRUNK" can convert space where the engine used to be into a refrigerator. For some people, comfort and design are still important criteria when making their choices, as is clear from developments in lighting, a key component in a vehicle’s look and customization, and digital light projections on the ground used to welcome passengers. For others, frugality and eco-design are the determining factors, as illustrated by our customers’ growing interest in recycled materials. SOLUTIONS FOR ALL MOBILITIES “We’re at a turning point as mobility reinvents itself, leading to a shift in the frontiers that used to define the industry as we know it.”
From energy transition to digital implementations, mobility is undergoing profound transformations as it becomes more sustainable and more technology-focused. Plastic Omnium is extending its range of products and services for all powertrains, and focusing on software to meet the growing needs created by new mobilities. How are you adapting your products to these new trends? We have secured several targeted strategic acquisitions that means we are now in a position to serve all forms of mobility and powertrains, from traditional ICE to hybrids, electric and hydrogen. The acquisition of e-Power in 2022 gave us a new technology platform for designing electronic components and systems for storing and managing electrical energy, aimed at heavy mobility customers. Our product portfolio is expanding, for instance with our acquisitions in lighting, allowing us to offer a major new component in terms of style, safety and comfort and whose connectivity with the rest of the vehicle is key. Synergies with our module and bumper activities mean we can offer our customers solutions that are completely integrated. Lastly, we have also just launched OP’nSoft, an activity 100%-focused on the software that is becoming central to every system we design. What role does innovation play? We’re at a turning point as mobility reinvents itself, leading to a shift in the frontiers that used to define the industry as we know it. This disruption drives us to take a fresh look at innovation, sealing new partnerships such as, in France, the 2022 agreement with the CEA (French Alternative Energies and Atomic Energy Commission) for developing new electrical technologies, or the tie-up in the USA with MIT (Massachusetts Institute of Technology). We have also entered into an agreement with TotalEnergies to design recycled materials that will meet the automotive industry’s demanding standards. When it comes to decarbonizing our activities, Schneider Electric is supporting us as we roll out our roadmap. Our practices in terms of innovation are changing too, as exemplified by the Innovation Challenge which sees employees team up with outside actors to propose innovative projects. The 2022 Challenge focused on our commitment to environmental responsibility, looking at recycled materials and eco-design for vehicles. We are also increasingly turning to an open innovation approach in our work with startups, a process that introduces us to technologies that are advanced, agile, or even disruptive. Multiform and open, innovation is at the heart of our strategy. 38% of light vehicles will be zero emission in 2030 90% of light vehicles will be connected in 2035 83% of light vehicles will be partially self-driving in 2030 Source: S&P Global Mobility 2022, Frost & Sullivan 2022, McKinsey 2021 27
AT THE FOREFRONT OF TRANSFORMATIONS IN MOBILITY More safety, more enjoyment, less carbon. At the CES 2023 event in Las Vegas, Plastic Omnium showcased its innovations for an age where mobility has never been more connected and interconnected, and roads are shared by many different forms of mobility. The Group has the technological and digital expertise to offer solutions that combine frugality with comfort, intelligence and safety. For a sustainable mobility that continues to inspire. 28
MOBILITY THAT IS MORE SUSTAINABLE MOBILITY DESIGNED AROUND SOFTWARE Vehicle body panels are no longer simply a commodity, they are packed with technology and incorporate complex functions such as advanced lighting solutions and a range of ever more sophisticated sensors. The aim? Increased safety. We are convinced that the energy transition will not happen with any single type of powertrain, but with a combination of solutions, and we are ready! The aim? Decarbonized mobility. Convenience, comfort, looks: mobility is evolving to reflect changing consumer tastes. The aim? Increased enjoyment. SMART LIGHTING TECHNOLOGIES able to anticipate and inform. TRENDS WALL showing materials of the future for vehicle body panels. INNOVATIONS IN HYDROGEN INNOVATIONS IN BATTERY PACKS and power electronics. TRENDS WALL WALL featuring all the design possibilities for vehicle body panels. FRONT TRUNKS for electric vehicles, offering new features to end-users. CHARGE LID MODULE to make charging safer and easier for users. MOBILITY THAT IS SAFER MOBILITY THAT IS MORE ATTRACTIVE PROJECTION SOLUTIONS for personalized interior and exterior lighting. 4D IMAGING RADAR that offers high-resolution monitoring of the environment no matter the weather conditions. 29
Making cars safer Plastic Omnium embeds a growing number of technologies into bodywork parts and functions into surfaces. It aims to sell radar components or bumpers with embedded radar that are invisible to the naked eye. Together with Greenerwave, it is developing a 4D imaging radar. This technology offers a combination of excellent resolution, resilience and reliability under all weather conditions, providing a 300-meter view ahead. More style, longer range Design contributes to an electric vehicle’s range by helping to boost aerodynamic performance. From sweeping hoods to flat surfaces, the core concern is moving smoothly through the air. The global benchmark for the design and manufacture of bumpers and front-end modules, Plastic Omnium creates parts that make a vehicle both efficient and safe. Style that looks great and helps the planet With its Trends Wall, Plastic Omnium gives everybody the chance to design their own vehicles with their choice of shapes, materials and functions. With designs ranging from the most traditional to the most disruptive, the customer chooses the level of personalization they want for their vehicle while also reducing its environmental impact. The Group can produce bumpers that contain as much as 50% recycled materials, without compromising their looks in any way. Style that improves comfort Electric cars offer more space inside the vehicle, with interior lighting that is more sophisticated and adapted to suit particular activities. Its center consoles and cockpits are key elements in a vehicle’s look, perceived quality (surfaces, materials and colors) and the safety of its passengers. Plastic Omnium can integrate as many as 150 separate components into each cockpit module. NEW MANUFACTURING TOOL Sigmatech, our research and development center near Lyon, France, specializing in exterior bodywork panels, now boasts a 2,700-tonne double-injection molding press. It is used to produce smart, very large bodywork panels that combine optical and electromagnetic transparency with freedom of design. This innovation was used, among other things, to design and produce the rear tailgate for the new electric sedan from Lucid. Vehicles’ bodywork components and passenger compartments continue to become more personalized, stylized and intelligent. Plastic Omnium designs, produces and assembles complex modules that offer new experiences and make journeys safer. VEHICLES THAT ARE MORE CONNECTED AND STYLISH THAN EVER 30
Style, safety and comfort: automotive lighting is emerging as a central element in the car of tomorrow. Plastic Omnium now provides an integrated and distinctive portfolio of solutions for every lighting need. For a truly unique travel experience. MORE THAN JUST LIGHT Creation of a Lighting division 2022 saw the establishment of this new division as a result of two major acquisitions. The Group merged Automotive Lighting Systems GmbH (AMLS), a German automotive lighting specialist, with Varroc Lighting Systems, global supplier of automotive lighting systems. Covering the complete lighting value chain, Plastic Omnium is portfolio ranges from components to complete headlights. Thanks to the synergies between its lighting, bumper and front-end module businesses, it is the only supplier with the ability to design fully integrated intelligent exterior systems. Improving safety Today, intelligent lighting offers users new experiences and enhanced comfort as well as being a major driver for improved safety. Front, rear and signal lighting are all vital for onboard vehicle safety and for the safety of other road users. Plastic Omnium offers advanced driverassistance services and systems. The Group never stops innovating, optimizing front-end and signal lighting and offering drivers ever higher levels of assistance and safety. It also develops intelligent lighting systems for all-terrain mobility, an award-winner at CES Las Vegas 2023, and for projecting information onto the road to communicate with other vehicles and pedestrians. Supporting the future of mobility With the rise of electric mobility, automakers are on the lookout for dynamic lighting designs to personalize their products and ensure their marque stands out. Integrated into exterior plastic parts, solutions from Plastic Omnium offer outstanding stylistic freedom. Plastic Omnium has developed the Dynamic Welcome Light Projection System that displays an image on the ground. The same lighting display is used in the passenger compartment, with ambient lighting that adapts to suit driver and passenger activities. And the headliner becomes a lighting console that makes it easy to read. 31
Electric cars are shaking up vehicle design and architecture as well as the modules used in their conception. Plastic Omnium is redesigning the style and functions offered by electric vehicle modules to win over customers eager for a new experience. THE ELECTRIC CAR: REINVENTING USES Shifting to multi-functional modules Electric mobility opens the doors to new vehicle layouts. Components are becoming ever more compact, and changes in battery model architecture, with battery packs increasingly fitted under the floor, are altering the amount and shape of space available. Plastic Omnium is maximizing the opportunities presented by the new architectures associated with the electrification of vehicles by designing value-added modules that enhance user comfort and experience. Frunk module: a whole new service With no engine or related parts - filters, V-belts, plugs, clutch - the electric car’s front trunk offers new space to fill. The Group has completed predevelopment of a module that can be used for storage (camping gear, e-scooter connected to wireless charging point, etc.), for recharging electronic equipment, or for a small tank holding wash liquid for sensors and cameras. Highly modifiable and focused on real-life uses, the Frunk module offers consumers a host of new services. Charge LID of the future Electric car charging systems open the door to multiple new applications. Plastic Omnium has created a charge LID port packed with technology. It features a lid that opens automatically, lighting solutions to help drivers, particularly when charging at night, a charge-level indicator and a vibrating de-icer function. The charge LID system is a solution that supports the rollout of self-driving vehicles. “The growing prevalence of electric cars has given a real boost to the module business as they become increasingly multi-functional and services-focused.” MARTIN SCHÜLER, PRESIDENT & CEO MODULES 32
Plastic Omnium has created OP’nSoft, a specialist structure dedicated entirely to software development. Working across all our business lines, it supports the increasingly central role software plays in responding to our customers’ requirements and in our expanded product portfolio. RISING TO THE SOFTWARE CHALLENGE Rethinking cars with software at its core Electric, connected, shared: every trend shaping the car of tomorrow is highly software-centric. Software is central to the latest products to join Plastic Omnium’s portfolio: lighting, radar and fuel cells. The Group now thinks of cars entirely in terms of software, with less of a focus on mechanical aspects. As software-defined vehicles become the norm, software lies at the heart of the strategy designed to increase Plastic Omnium’s content per vehicle. Connected to the cloud, software is updated automatically without the need for any outside intervention. An in-house software structure Plastic Omnium created OP’nSoft to ensure that its technologies align fully and perform optimally with automakers’ software, making it a supplier of choice. Currently with a 40-strong workforce that will grow to 120 in 2023 and 250 in 2025, OP’nSoft works for the Group’s divisions on a supplier-customer model to develop software for embedded products and connected services. Its software architects use lean methodology and are part of the project teams. They work in fields as varied as driver assistance systems, fuel cells, electrification, cybersecurity and lighting. A strategy focused on open innovation To accelerate its move into embedded software and disruptive technologies, Plastic Omnium continues to forge alliances with startups and deep tech companies. For example, it collaborates with Greenerwave on transferring telecommunications technologies to an automotive environment (4D radar), and with Alkalee to facilitate the integration by automakers of Plastic Omnium’s software applications. X 3 SOFTWARE’S SHARE OF VEHICLE VALUE BY 2030 33
TECHNOLOGICAL MOBILITY Plastic Omnium has the complete array of technological expertise needed to meet the needs of mobility players and comply fully with all regulations. Its range of energy storage systems covers all powertrains types: internal combustion, electric hybrid, battery or hydrogen. The Group has taken a significant step forward in its electrification strategy with the creation of its e-Power business to accelerate time-to-market for innovative electric vehicle solutions. In response to automakers’ demands for greater sustainability at every stage of the vehicle parts lifecycle, Plastic Omnium is innovating and forging alliances to eco-design vehicles and boost the portion of recycled materials used, including for external parts. Plastic Omnium provides technologies to support its customers in their energy transition, working across all powertrain types. 35
“Plastic Omnium is convinced that e-fuels and hydrogen are both vital to the success of the industry's transformation.” ALEXANDRE CORJON EXECUTIVE VICE-PRESIDENT INNOVATION & SOFTWARE ENERGY TRANSITION TECHNOLOGY LEVERAGING “Yesterday we produced mechanical parts, tomorrow almost everything we produce will be electronic products that rely increasingly on software.” CHRISTIAN KOPP PRESIDENT AND CEO CLEAN ENERGY SYSTEMS
The technological revolution Plastic Omnium is embarking on is seeing a transformation of its product portfolio, with its center of gravity switching from mechanically-based to software-based. The Group has chosen to make this shift through cooperation, integration and the acquisition of new skills. How does innovation drive transformations in mobility? Christian Kopp: The transformation of mobility happens thanks to technological breakthroughs. Our focus in no longer on optimizing technological solutions, but on rolling out new technologies and design processes, often involving radical changes to how vehicles’ primary functions work. Where there were once a handful of electronic components, we are now seeing dozens if not hundreds of microprocessors in every car. Alexandre Corjon: Technology alone is not enough to deliver a true ecological transition. Technology is a tool that allows us to offer solutions that are financially acceptable to our end customers. This applies to batteries, where prices have fallen constantly over the past decade, and electronics, where we are identifying new components that will deliver lower costs. What technologies does Plastic Omnium believe in? C.K.: We believe that the energy transition will not happen only thanks to battery electric vehicles. This is not a onesize-fits-all solution and we believe that meeting tomorrow’s mobility challenges will require a mix of powertrains, including hydrogen and e-fuels. Plastic Omnium is taking a position today across the entire powertrain mix: ICE, hybrid, plug-in hybrid and electric, battery and hydrogen. A.C.: The choices made in Europe are not the same as the choices made in other parts of the world. Shifting to an electric car is the right thing to do if you can run it using green electricity. But this is not possible in every market. Plastic Omnium is convinced that e-fuels and hydrogen are both also vital to the success of the industry's transformation. What does it mean to be a technology partner? C.K.: Over the past 30 years, Plastic Omnium has shifted its core expertise from plastic manufacturing to its new role as a designer and producer of complex systems. This is one of the keys to our success, which is very much rooted in our ability to work with the best partners, including startups, so that we can offer the market the finest technological and industrial solutions. A.C.: At CES in Las Vegas, we showcased our partnerships with startups such as Tiamat, for developing power battery packs designed mostly for decarbonization and using alternative chemical compositions that are safer and contain no rare earth elements, Greenerwave for 4D imaging radar, and Alkalee for software architecture. What we set out to do is create bridges between these pure technology actors and our traditional customers, adapting and scaling their solutions to suit all forms of mobility. What are Plastic Omnium’s technological ambitions? C.K.: We want to become more of a systems specialist. If we take hydrogen as an example, we intend to be present across the complete value chain, everywhere from highpressure tanks, thanks to our well known expertise in filament winding, to fuel cells and fuel cell system management. The same applies to batteries, where we will be offering complete systems that we master every part of, as well as smart systems associated with cells. A.C.: Our technological advances are all aimed at making mobility safer, for instance, with 4D imaging radar and smart lighting, more attractive by using interior lighting and bodywork panels to create unique experiences. We address sustainability by investing in bio-sourced, recycled materials and integrating new functions such as photovoltaic panels, and investing in batteries, power electronics and hydrogen. And then there is software, which is fast becoming central to every vehicle for managing lighting, battery and fuel cells. How can you adopt so many technologies simultaneously? A.C.: We work according to a number of different timescales. Working with the CEA gives us access to the advanced technology needed to develop demonstrators. Working with startups allows us to set up partnerships with various levels of integration depending on their technological maturity. And acquisitions allow us to gain direct access to their technology and customer portfolios. This agility is what makes us stronger and more competitive, and allows us to meet the extremely varied needs of different actors in the mobility sector. C.K.: As well as our open innovation approach, we sometimes choose to integrate technologies, purchase components or create joint ventures. For hydrogen mobility, for example, we manufacture our own highpressure tanks and have also set up EKPO, a joint venture with ElringKlinger, to produce the fuel cells. 37
COMBINING EVERY TECHNOLOGY GLOBAL PRODUCTION FORECASTS, ALL POWERTRAINS (MILLIONS OF VEHICLES) 36% 33% 32% 2027 89.8 74% 65% 21% 16% 14% 10% 79.3 2022 2023 +2.5% 82.0 Source: S&P Global Mobility Powertrain database January 2023 (0-3,5t) - BEV excl. REX BEV / FCEV HYBRID ICE Market leader in optimizing the internal combustion fleet Plastic Omnium designs and delivers advanced technologies to make internal combustion engines less harmful to the environment. These engines equip the overwhelming majority of vehicles worldwide, a situation that will not change for many years. While internal combustion and plugin hybrid engines are set to be banned in Europe as of 2035, projects to develop internal combustion engines are ongoing in Asia and the USA. Plastic Omnium is also a major player in emission reduction systems, with its selective Catalytic Reduction Systems reducing emissions of nitrogen oxides (NOx) from diesel vehicles by up to 95%. Hybrids offer a chance for immediate transition As a transitional technology, plug-in hybrids bridge the gap between internal combustion engines and all-electric powertrains. Plug-in hybrid technology is particularly well suited to SUVs, combining electric journeys in town with internal combustion for longer trips. Widely adopted on the market, hybrid and plug-in hybrid engines are fitted with smart systems for fluid and vapor management that are capable of resisting high pressures. The range of INWIN and Tanktronic®high technology pressure tanks was specially designed to meet the needs of plug-in hybrid powertrains. Supporting the rise of electric mobility Plastic Omnium invests heavily in electrification technologies, particularly hydrogen. Highly suited to heavy mobility applications, particularly when paired with a local source of hydrogen production, the Group invests on average €100 million in hydrogen technologies every year. To serve the entire traction chain, Plastic Omnium offers a range of high-pressure tanks and fuel cells produced by EKPO, a joint venture with ElringKlinger. As well as battery packs and battery systems, the Group also supplies smart software solutions that communicate with automakers' other components. Plastic Omnium supports every form of powertrain with its ready-to-use solutions. Featuring an ever-growing software content, these solutions communicate with all automakers’ other components.
The global leader in energy systems*, Plastic Omnium is determined to play a major role in electrification, particularly for heavy mobility. Its goal is to build a complete range of storage and energy management systems. BECOMING A BENCHMARK FOR BATTERY SYSTEMS HEV & BEV BATTERY PACK 48 BATTERY PACK HV BATTERY PACK DC/DC BMS E-MOTOR & INVERTER SYSTEM DESIGN & INTEGRATION Comprehensive energy range In 2022, Plastic Omnium acquired French company Actia Power (part of Actia Group), a designer of electronic components and systems for storing and managing electrical energy. With its new e-Power entity, the Group offers actors from the mobility sector, focusing initially on heavy mobility, a comprehensive energy range built around battery packs and power electronics. One of the new entity’s areas of expertise is the conversion of vehicles fitted with internal combustion engines to an electric powertrain. To develop its future battery systems, e-Power will also work closely with a new R&D center, Green Mobility Lab at α-Alphatech, in Compiègne (France), specializing in assembling prototypes, electrical testing and validating products and electronics. Battery systems specialist Plastic Omnium provides the entire system and all the smart functions associated with cells, i.e. electronic, thermal, and mechanical management, ensuring that it can deliver its automaker customers a complete solution at the lowest cost. In 2022, the Group invested €20 million in French company Verkor in order to secure its supply of low-carbon cells in France and industrialize its production of modules and battery packs for private cars and commercial vehicles. A pilot assembly line will be set up at Verkor’s future innovation center in Grenoble, France. Verkor also owns a gigafactory in Dunkirk, France. From sodium to lithium Plastic Omnium can manufacture battery systems no matter the electrochemical package. Working with a French startup called Tiamat, which manufactures sodiumion batteries using an active ingredient widely available worldwide, Plastic Omnium is opting for a disruptive new electrochemical makeup (without nickel, cobalt or lithium) to develop its future power battery packs, suitable for high voltage 48v hybrid vehicles and hight voltage hybrid vehicles and hydrogen powered vehicles. TARGET €1BN of revenue in 2030 SIZE OF GLOBAL MARKET €20-25BN in 2030 “PLASTIC OMNIUM’S AIM IS TO OFFER A LINE-UP OF POWER BATTERIES FOR MILD HYBRID VEHICLES AND, TOMORROW, FOR HYDROGEN VEHICLES. THE GROUP WILL SUPPLY THE ENTIRE BATTERY SYSTEM.” *Source: internal study based on S&P Global Mobility data
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