Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 152 The takeover of HBPO led the Group to reassess the share of 33.33% held HBPO’s business plan available at the purchase date (discounted before acquisition on the basis of its fair value. The revaluation impact is cash-flow and multiples method). The long-term growth rate used to €255 million in income booked in the Income Statement under “Other extrapolate flows is 1.7%, using a 9% discount rate. The difference operating income and expenses” (see Note 4.6). This gain corresponds to between this fair value and the price paid for the additional holding the difference between the carrying amount of the holding at the date of corresponds to the premium that the Plastic Omnium Group agreed to pay the acquisition and the fair value of the holding (see Note 1.1.4). Fair to take over HBPO and thus be able to implement its modular value was determined on the basis of a multi-criteria approach based on development strategy. REVALUATION OF PLASTIC OMNIUM’S INITIAL 33.33% INTEREST In thousands of euros Book value of the share interest (A) 40,000 Fair value of the share interest (B) 295,000 REVALUATION RECOGNIZED IN THE PROFIT AND LOSS ACCOUNT UNDER “OTHER OPERATING INCOME AND EXPENSES” OF THE INITIAL 33.33% HELD BY COMPAGNIE PLASTIC OMNIUM (C) = (B) - (A) 255,000 ACQUISITION PRICE FOR HBPO TAKEOVER 2.3.1.3 The purchase price is broken down as follows: In thousands of euros Value of historical participation: 33.33% Acquisition price of investment acquired from Mahle-Behr: 33.33% Acquisition price of the takeover: 66.67% Value of HBPO shares accounted at the equity method as of June 30, 2018 40,000 40,000 Revaluation recognized in the Profit and Loss (“Other operating income and expenses”) 255,000 255,000 Acquisition price of investment from Mahle-Behr 369,762 369,762 ACQUISITION PRICE FOR HBPO TAKEOVER 295,000 369,762 664,762 PROVISIONAL PURCHASE PRICE ALLOCATION 2.3.1.4 within the establishment of an opening balance sheet at July 1, 2018 which is based on the fair value of HBPO acquired assets and liabilities The takeover of HBPO is accounted in accordance with IFRS 3R “Business (see Note 2.3.1.5). Combinations”, based on an acquisition price of Mahle-Behr shares for €370 million and €295 million for the historical interest held, in particular, PROVISIONAL ALLOCATION OF THE PURCHASE PRICE In thousands of euros Attributable to the Group Plastic Omnium Non-controlling interest attributable to Hella Assets and liabilities acquired at 100% ACQUISITION PRICE RELATED TO THE TAKEOVER A 664,762 Assets and liabilities acquired B 68,539 30,031 98,570 Adjustment of acquired assets: C 71,428 32,853 104,281 Customers contracts 79,333 39,667 119,000 Trademark 5,467 2,733 8,200 Deferred tax (19,093) (9,547) (28,640) Joint-ventures owned by HBPO 5,721 - 5,721 ASSETS AND LIABILITIES ACQUIRED MEASURED AT FAIR VALUE –  ATTRIBUTABLE TO THE GROUP D PG =B PG +C PG 139,967 139,967 Assets and liabilities acquired measured at fair value –  Attributable to non-controlling interests Hella D MIN =B MIN +C MIN 62,884 62,884 Assets and liabilities acquired measured at fair value D= D PG + D MIN 202,851 PARTIAL GOODWILL E=A-D PG 524,795 Minority interests that constitute a share of current interests and confer a proportional share in HBPO’s net assets to the partner Hella in the event of liquidation are assessed on the basis of their share of the net assets (partial goodwill method).