EuroBusiness Media (EBM): Plastic Omnium, a world leader in automotive body modules, fuel tanks and waste containers, reports full-year results for 2013. Laurent Burelle, welcome. You are the Chairman and CEO of Plastic Omnium, what is your view on your 2013 results?
Laurent Burelle: I think we can say that we have had an excellent year. We had a nice top-line growth, 6.6%; a nice EBITDA of almost €600 million, €400 million EBIT, both with 18% growth; and a net profit – the best ever – of around €200 million. So, I think we can say we have had a good year.
EBM: How are you having to trade off between the fabulous growth opportunities offered by your expansion in the Chinese market and your large historical presence in the European market which doesn’t have as enticing and dynamic a growth outlook?
Laurent Burelle: As a matter of fact, you have to reach a profitability which allows you not to trade off between the necessary growth and market share growth in Asia, especially in the China automotive market on one side, and the growth and the rebound of the US economy. So, we have to deal with investments in the US, investments in China and cost reductions in Europe. So you have to have a profitability and a fee cash flow which allows you to develop that strategy.
EBM: You’re a typical example of a family owned company. How is this a strategic advantage for your growth?
Laurent Burelle: You can say it is an advantage in the sense that, obviously, we look at value creation. We need value creation, like any other company. But we can allow ourselves sometimes a longer return on investment if we think that it is worth the case. But on a day-to-day basis, we are acting just like a publicly listed company looking for profitability and dividends for its shareholder.
EBM: The success and growth of Plastic Omnium has been due to the increasing use of plastic in cars. What are your views today on the outlook for the automobile industry?
Laurent Burelle: There are two big drivers for the next years to come. It’s the reduction of CO2 emissions, that means the reduction of weight. And the reduction of weight means an increase of plastic content in the car. And the second driver is the reduction of nitrogen oxide emissions, and that is our fuel tank division. So we have two strong drivers, by law and by ecology, which are pushing our innovation, our investment and our turnover for the years to come.
EBM: Your Environment business is only about 10% of revenue today. Will it still stay in the group?
Laurent Burelle: Yes, it’s a little bit too small: 10% with respect to the Automotive 90%, but we have turned it around. We have a very nice healthy profit again of 7.6% in the second half-year of 2013. We will improve our results by €15 million for 2014 in this division. So let’s do that for the next two years, and then we will be able to make some build-up of new activities in this division.
EBM: And finally what are your views on the outlook for 2014?
Laurent Burelle: 2014 is going to be again a growth year for the automotive business (a little bit less than in 2013). But for Plastic Omnium, turnover, EBIDTA, EBIT and net profit will be growing again.
EBM: Laurent Burelle, Chairman and CEO of Plastic Omnium, thank you very much.
Laurent Burelle: Thank you.
