Plastic Omnium // 2021 Universal Registration Document

4

NON-FINANCIAL REPORTING DISCLOSURE Sustainability at the heart of market trends

4.1.1

4.1.2

PLANNED GROWTH OF ELECTRIC

INCREASED AUTOMATION FOR GREATER SAFETY

VEHICLES

CO 2 emissions thresholds of vehicules during their usage phase continue to become stricter worldwide. Today, European regulations on the CO 2 emission standards allowed for passenger cars are tightening: 95 g CO 2 e/km in 2021, 81 g CO 2 e in 2025 and 59 g CO 2 e in 2030, i.e. a decrease of 55% between 2021 and 2030. Since 2020, China has also regulated passenger car emissions with a target of 117 g CO 2 e/km. The entire automotive industry is thus engaging in technologies enabling massive reductions in CO 2 . Plastic Omnium regularly reviews and updates available international data, future standards and regulations, and the ability of car manufacturers to respond to them, in order to generate realistic projections and a complete analysis of the future of the various markets. These studies predict exponential growth in electric and plug-in hybrid vehicles: from 8.2% in 2021 to 22% in 2025, and then 42% in 2030. Battery electric vehicles will represent 32% of the market in 2030, most of which will be in Europe, China and the rest of Asia (42%, 40% and 30% respectively). Hydrogen electric vehicles will account for around 2% of the market in 2030. Forecasts estimate the share of hybrid vehicles of all types (plug-in and non-plug-in) at 31%. In this race to electrify vehicles, companies still need to ensure that the electricity that powers them is decarbonized and that all efforts have been made in terms of energy efficiency to reduce CO 2 emissions. Hydrogen is expected to play a major role in the energy transition in most countries around the world. Several European countries have officially adopted a hydrogen strategic plan, mobilized or planned investments in this area and 11 countries are currently preparing their national hydrogen strategy.

The market for connected cars continues to grow, benefiting two segments in priority: safety and driving assistance. Plastic Omnium’s growth strategy is in line with these developments. Currently, Plastic Omnium bumpers include up to 50 high-tech components to augment human senses and make driving simpler and safer. With its expertise in integration of functions and unique performance in the electromagnetic transparency of plastics, Plastic Omnium is contributing to the development of tomorrow’s smart cars. Its exterior parts will include numerous radars and other sensors, with ever-improving design and protection. Advanced driver-assistance systems (or ADAS) are increasingly numerous in vehicles. These systems make it possible to secure passengers and provide the driver with driving assistance and comfort. Driver assistance systems have been revolutionized by technological progress and they also reduce the energy consumption of vehicles. Progress on level 3, 4 and 5 autonomous vehicles (from semi-autonomous to fully autonomous cars) is promising. Current forecasts estimate their share at 40% of the global car fleet by 2030. Vehicle automation and connectivity will also require increasing skills in plastronics (combining plastics and electronics) and mechatronics (at the crossroads of mechanics, electronics and connected systems). The prevailing trend of shared mobility has been strongly slowed down by the Covid-19 crisis leading to a temporary return to individual vehicles because of the health risk when using shared vehicles. However, this shared mobility is a fundamental trend that will continue to develop. In 2025, all new vehicles should be connected, thus reaching 93% of the fleet in Europe, 97% in the United States and 72% in China. Vehicle automation will grow over the same period, reaching 15% of new sales in Europe, 2% in the United States and 16% in China, compared with less than 1% in 2020. Information capture, connection with infrastructures and data processing are some of the functionalities that vehicles will need to have, especially in the parts produced by Plastic Omnium. The industry is also transforming to incorporate increasingly automated and connected chains, and will require new professions, whether for products or production equipment: data scientists, artificial intelligence engineers or cyber security specialists. CONNECTIVITY AND DIGITIZATION 4.1.3

EUROPEAN COUNTRIES THAT HAVE ANNOUNCED QUANTIFIED INVESTMENT PLANS FOR HYDROGEN

Country

Hydrogen plan investments

Germany

€7 billion + €2 billion in external partnerships

France

€7.2 billion

Spain

€8.9 billion

Portugal

€7 to 9 billion

Austria

€2 billion (forecast)

Italy

€10 billion (forecast)

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021