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5. Plastic Omnium S.A. Business Report FY ended 2014

* The application of the consolidation standards such as IFRS 11 is mandatory and retrospective as of January 1, 2014. In accordance with IFRS 11, joint-venture partnerships must be recognized via the equity method, as the proportional integration method is no longer authorized. 2013 figures were restated in compliance with the new consolidation standards requiring retrospective application at January 1, 2013.
** The figures are based on the Company's Management accounts that it uses for its operational management. Joint ventures are fully consolidated or consolidated under the proportional integration method in the Management accounts, while they are consolidated using the equity method in the consolidated financial statements.

Factors
1) Sales from the Automotive Division
-In the fiscal year ended December 31, 2014, sales from the Automotive Division grew by 4.9% on the Management accounts.

-Sales in Europe increased by 7.4%. The Automotive Division enjoyed strong business in England and Germany, thanks in particular to the launch of innovative offers in terms of reducing vehicle weight and emissions (tailgates, SCR emissions control system, etc.). In China, the Company recorded growth in sales of 23% to nearly EUR 430 million, thanks to the ramp-up of five plants opened in 2013 and the commissioning of four new plants in 2014.

Acquisition

-In December 2015, the Company announced that it has signed a MOU (Memorandum of Understanding) with Faurecia S.A. to acquire its Automotive Exteriors business (bumpers and front-end modules) for an enterprise value of EUR 665 million. The composite business, the Faurecia plant for Smart in Hambach (France) and two joint ventures in Brazil and China are not included in the deal. The transaction is expected to close during 2016. (From a press release on December 14, 2015)

2014-2018 Growth and Innovation Strategy

Sales Target
-The Company aims to achieve EUR 7 billion in sales on the Management accounts in 2018, compared with EUR 5.3 billion in 2014.
-Europe is expected to  account for 50% of the total sales, North America for 29% and Asia for 18%, with sales in China doubling between 2014 and 2018 (28 plants in 2018).

Investment Plan
-The Company plans to invest EUR 1.7 billion in 2014-2018, compared with EUR 1 billion in 2009-2013. Accordingly, the Company plans to open 20 new plants in 2014-2018, including 12 in Asia.
-The Company will strengthen its leading market positions with 15% market share expected in bumpers in 2018 (10% in 2014) and 24% in fuel systems (21% in 2014).

New Product Development
-In response to increased regulatory constraints worldwide aimed at protecting the environment (CO2, NOx), the Company is developing innovative solutions to make vehicles lighter (plastic tailgates, parts made with composite materials and carbon fiber) and to improve aerodynamics (light-air bumper), together with systems to remove NOx (DINOx-SCR).
-The ramp-up of these new product lines will enable the Company to generate nearly EUR 1 billion in sales with innovative solutions in 2018, i.e. 15% of sales, compared with 5% in 2013.

New Factories

-In 2015, the Company plans to set up three plants in China, one in Europe and two in North America.

-Operation plans for major new factories are as follows;

<China>
-In China, four new plants became operational in 2014: the Yantai and Changshu sites for exterior body parts, and the Shenyang and Ningbo facilities for fuel systems. These plants will be expanded in 2015-2016 to include four additional plants: three for the Auto Exterior Division (Wuhan, Changshu and Beijing for front-end modules) and one for the Auto Inergy Division (Chongqing). In 2016, the Company will have 25 plants in China.

<Russia>
-In Russia, construction of the Saint Petersburg plant continued. It will become operational during the first half of 2015, with the aim of providing fuel systems to Nissan, Ford and Toyota. It will increase the number of industrial sites in Russia to three. Russia is currently benefiting from the strong substitution of metal fuel tanks by plastic fuel tanks (66% of Russian fuel tanks were made of plastic in 2014, with this percentage set to increase to 77% in 2018).

<U.S.>
-The Company has begun work on the construction of two plants in the U.S.: the one produces auto exterior parts in Chattanooga (Tennessee), aimed at supplying the Volkswagen plant nearby; the other is intended for the production of fuel systems in Fairfax (Kansas), near its customer General Motors. These two plants require a total investment of USD 70 million. They will be commissioned in the second half of 2015 and eventually generate revenue of USD 140 million. The construction of these two production units form part of the EUR 1.2 billion investment program announced by the Company for the 2013-2016 period. (From a press release on May 22, 2014)

<UK>
-In England, the Auto Exterior Division was given the task of producing bumpers for two additional Land Rover models, thereby becoming the exclusive automotive equipment manufacturer of these parts for Land Rover in this region. Construction of the plant required for this production is already under way. It should be operational in mid-2016.

Contracts

-Supply agreements for major new products

-The Company was involved in 102 new programs launched in 2014. As of February 25, 2015, the Company has 133 new programs to be launched in 2015.

Note: As of February 25, 205

-Key programs to be launched in 2015 are as follows;

• Europe: Volvo "XC60", Renault "Espace", Audi "Q7", Audi "A4", Nissan "Qashqai", Nissan "X-Trail"
• North America: GM Chevrolet "Malibu", VW "Passat", Ford "F 650/750"
• South America: Honda "HR-V", Toyota "Hilux/Fortuner"
• Asia: Toyota "Prado", Toyota "Hilux/Fortuner", Geely "Haoqing", Peugeot "308", Beijing Auto "Senbao X65", GM Buick "Excelle GT", GM Cadillac "ATS", BMW "3 Series"
• Africa: Toyota "Hilux/Fortuner"

R&D Structure

-More than 2,000 engineers and technicians - 9% of the workforce - are employed worldwide in 21 R&D centers and engineering facilities. The Company has 500 engineers and technicians in China.

-In the fiscal year ended Dec. 31, 2014, a total of EUR 270.7 million was allocated for research and development, equivalent to 5.1% of revenue on the Management accounts.

-The Company manages 3,121 patents, of which 137 were filed in 2014.

R&D Facility

-The Company opened a new international research and development center for its Auto Inergy Division, α-Alphatech, on September 1, 2014. The center required total investment of EUR 65 million and employs 450 people.

R&D Activities

-In its Automotive Equipment businesses, the Company focuses its research on solutions that reduce carbon dioxide (CO2) and nitrous oxide (NOx) emissions and helps automobile manufacturers to build the clean car of tomorrow by focusing on three main goals:

• Solutions that make vehicles lighter and more aerodynamic.
• Emissions-control systems.
• Support for new hybrid and electric powertrains.

Product Development

Active Grille Shutter
-Active grille shutters open completely or partially depending on engine speed and temperature.

Active Front Spoiler
-Active front spoiler lowers at above 60 km/h, optimizing the vehicle's aerodynamic shape.

Active Side Shutter
-Active side shutters on the rear bumpers open at 60 km/h to capture air flow.