Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 155 SMYRNA PLANT, TENNESSEE, UNITED STATES Construction of the Smyrna plant in Tennessee in the United States for the Clean Energy Systems Division of the Industries segment, began in the first half of 2017 and was completed in March 2018. This plant, has been producing fuel systems for a Japanese manufacturer since August 2018. Investments in production capacity: plant in 2.5.2 Hlohovec in Slovakia for the production of body parts The construction of the new plant in Hlohovec in Slovakia for body parts (Intelligent Exterior Systems Division of the Industries segment), which will supply the plant of carmaker Jaguar Land Rover (which also set up in Slovakia, in Nitra), started in the second half of 2017 and is continuing. Work will be completed in the first half of 2019, when production will begin. Construction of the innovation and high-tech activity 2.5.3 center: Δ -Deltatech The construction of an innovation and high-tech activity center for new energies, Δ -Deltatech, in Brussels, Belgium decided by the Group in the second half of 2016, began in early 2018. The opening is planned in early 2019. Construction of a technical center in Wuhan in China 2.5.4 for Clean Energy Systems in the Industries segment – ω -Omegatech In order to support its growing activities in Asia, and reduce the use of the α -Alphatech center in France in Compiègne (department of the Oise) and of outsourcing, the Group launched a technical center construction project in Wuhan in China, near its current plant specialized in the manufacture of fuel systems. The center will include technical premises for the development of new fuel tank projects and new part validation tests, a fuel test laboratory, a mechanical laboratory and a prototype development workshop. Construction began in the third quarter of 2018 and will end in the first quarter of 2019. Expansion and reinforcement of advanced tools at 2.5.5 the international R&D center for body components and modules: Σ -Sigmatech As part of its overall strategy for responding to new challenges arising from the preparation of the vehicle of the future and the advent of the connected, autonomous and cleaner car, the Group launched an extension and digitization program for its international R&D center, Σ -Sigmatech, at the end of 2017. The program will provide the center with resources in mechatronics, connected systems, virtual reality and collaborative robots. Disposals of companies, property assets and site 2.6 closures at December 31, 2018 Disposal of the Environment business 2.6.1 On September 20, 2017, Compagnie Plastic Omnium announced its disposal project of the Environment Division, which specializes in waste management products and services intended primarily for local authorities and businesses to focus on the global development of its automotive activities. It employs 1,800 people and has an R&D center and six plants in Europe (France, Germany and Spain). Its activities cover: containers: household waste receptacles, bins, composters, ● underground and semi-underground containers; associated services: maintenance, washing, surveys and ● implementation, data management, etc.; urban furniture: waste disposal areas, playgrounds, equipment for ● parks and streets. As of June 30, 2018, taking into account the progress of the disposal process and the probability that the sale would take place in the following 12 months, the Group decided to apply IFRS 5 by reclassifying this activity in “Non-current assets held for sale and discontinued operations”. The IFRS 5 accounting treatment applied from June 2018 to the entities in the Environment Division led to a specific line item for the Division on the presentation of the consolidated income statement for 2017 and 2018. A “sale purchase agreement” was signed on October 26, 2018 between the Plastic Omnium Group and the consortium Latour Capital/Bpifrance (French public investment bank). On December 18, 2018, Compagnie Plastic Omnium sold the Environment Division to the consortium Latour Capital/Bpifrance (French public investment bank) for €199.4 million. The “Net profit after tax from discontinued operations” presented in the consolidated income statement of €1,494 thousand includes: the activity of the Environment Division net of inter-company ● transactions with the Group, from January 1 to November 30, 2018 for +€11,964 thousand; and the net loss after tax on the sale of this business for ● -€10,470 thousand as of December 31, 2018.