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 154 CONTRIBUTION OF HBPO TO THE PLASTIC OMNIUM GROUP INCOME STATEMENT 2.3.1.6 The contribution of the HBPO activity to the main aggregates in the 2018 Group Income Statement is presented below: In thousands of euros HBPO 2018 contribution Totals % Consolidated revenue 956,863 100.0% Operating margin (1) 32,481 3.4% Profit from continuing operations before income tax and after share of profits of associates and joint ventures 31,402 3.3% Of which, €8,731 thousand related to the equity-accounting of HBPO for the first half of 2018. (1) If the takeover of HBPO have had been realized on January 1, 2018, the following aggregates of the Group would have been sales: €8,260 million; ● operating margin: €628 million; ● income from continuing operations before tax and after share of ● income from associates and joint ventures: €670 million. Holding in the Finnish company Tactotek OY 2.3.2 In February 2018, the Group took a 4.43% equity stake in preferred shares in the Finnish plastronics company Tactotek OY in the amount of €3 million. The company specializes in the manufacture of radars, sensors integrated in vehicle bodies. In the absence of significant influence or control exercised by the Plastic Omnium Group, Tactotek OY is not consolidated. The acquired securities are recorded in the balance sheet under “Investments in non-listed equity instruments” (see Note 5.1.7.1) . The change in fair value of this asset is recognized in profit or loss (see Note 2.1.2 on the first application of IFRS 9 “Financial Instruments”) . Monitoring of 2017 acquisitions and 2.4 acquisitions of investments The previous year’s acquisitions have evolved as follows: Monitoring of the acquisition of Swiss Hydrogen by 2.4.1 the Clean Energy Systems Division Swiss Hydrogen, specializing in the design and production of energy management and control solutions for combustion battery systems dedicated to mobility (“balance of plant/BOP”) based in Fribourg, was acquired on December 18, 2017. During the first half of 2018, a non-material adjustment was made to the acquisition price of Swiss Hydrogen and therefore goodwill was recorded. The final goodwill amounted to €8.9 million at December 31, 2018. Monitoring of the acquisition of Optimum CPV BVBA 2.4.2 by the Clean Energy Systems Division The Belgian company Optimum CPV BVBA, specialized in the design and production of tanks in filament composite for the storage of pressurized hydrogen and based in Zonhoven, was acquired on December 18, 2017. During the first half of 2018, a non-material adjustment was made to the acquisition price of Optimum CPV BVBA and therefore goodwill was recorded. The final goodwill amounts to €4.8 million at December 31, 2018. Investment in the venture capital company Aster 2.4.3 In 2017, the Plastic Omnium Group, as a co-sponsor, signed a €20 million subscription commitment in the framework of a fundraising operation of €240 million by the venture capital company Aster. Aster supports the growth of innovative start-ups in energy, greentech for energy transition, innovative materials, intelligent transport systems, digital transformation, new industrial models and the internet of things, primarily in Europe and the United States. At December 31, 2018, the amount paid by the Plastic Omnium Group amounted to €1.5 million, including €1 million in 2018. This is recognized as an asset on the balance sheet under “Long-term investments in equities and funds” (see Note 5.1.7.1). The change in fair value is recognized in the income statement (see Note 2.1.2 on the first-time application of IFRS 9 “Financial Instruments”) . Monitoring of investments and site openings 2.5 Investments in production capacity: Greer and 2.5.1 Smyrna plants in the United States The construction of the Greer and Smyrna plants in the US ended. GREER PLANT, SOUTH CAROLINA, UNITED STATES Construction of the Greer plant in South Carolina in the United States, launched during the first half of 2017, ended in July 2018. This plant is designed to deliver all major painted exterior body parts for carmaker BMW’s X3, X4, X5 and X6 models, as well as future models of the BMW plant. The Greer plant is part of the Intelligent Exterior Systems Division of the Industries segment. It will also supply carmakers Volvo in South Carolina and Daimler in Alabama. The Greer plant is the first plant in the history of the Group (pilot plant) that will operate on “4.0” technology. It will lead to further improvements in industrial processes, parts quality, robotization, standardization and competitiveness.