Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 157 INCOME STATEMENT – ENVIRONMENT DIVISION: In thousands of euros 2018 % 2017 % CONSOLIDATED SALES (REVENUE) 309,706 100.0% 335,476 100.0% Cost of goods and services sold (245,154) -79.2% (261,955) -78.1% GROSS PROFIT 64,552 20.8% 73,521 21.9% Net Research and Development costs (2,124) -0.7% (2,050) -0.6% Selling costs (18,444) -6.0% (20,292) -6.0% Administrative expenses (23,144) -7.5% (24,961) -7.4% OPERATING MARGIN 20,840 6.7% 26,218 7.8% Other operating income - - - - Other operating expenses (6,143) -2.0% (1,891) -0.6% Financing costs, net (642) -0.2% (720) -0.2% Other financial income and expenses 33 0.0% (356) -0.1% PROFIT BEFORE INCOME TAX 14,088 4.5% 23,251 6.9% Income tax (2,124) -0.7% (3,245) -1.0% NET INCOME 11,964 3.9% 20,006 6.0% KEY AGGREGATE OF THE CASH-FLOW STATEMENT – ENVIRONMENT DIVISION: In thousands of euros 2018 2017 restated Cash-flows from Operating activities 9,880 19,441 Cash-flows from Investing activities (10,502) (9,650) Cash-flows from Financing activities 5,127 318 Disposal of the Group’s Equity shares in Plastic 2.6.2 Recycling SAS At the end of February 2018, the Plastic Omnium Group and Derichebourg, which co-owned Plastic Recycling SAS equally, sold their equity shares to Veolia Propreté. The transaction resulted in a +€0.4 million profit for the Plastic Omnium Group, and sale proceeds of €0.8 million. Monitoring of disposals of companies in 2017 2.7 Monitoring of the disposal of the Automotive 2.7.1 Division’s Truck business on June 30, 2017 In accordance with the sale contract, the process for determining any price adjustments between the two parties is still ongoing at December 31, 2018. No significant price revisions are expected. Financing operations 2.8 A new private placement Schuldscheindarlehen 2.8.1 On December 21, 2018, the Group set up a new Schuldscheindarlehen financing facility at 1,6320% interest rate, for private investors abroad, notably in Germany, China, France, Belgium, Switzerland and Austria for an amount of €300 million and 7 years of maturity. The features of this financing facility are given in Note 5.2.7.2 “Borrowings: private placement notes and bonds”. End of the 2012 Euro PP private placement 2.8.2 The private placement of a total of €250 million by the Group in 2012 expired on December 12, 2018. See Notes 5.2.7.2 “Borrowings: private placement notes and bonds” and 5.2.7.5 “Reconciliation of gross and net debt”. Term of the negotiable medium-term note agreed 2.8.3 on July 13, 2015 The negotiable medium-term note of €10 million subscribed by the Group with a credit institution expired on July 11, 2018. See Notes 5.2.7.3 “Loans, negotiable debt securities and other financial assets” and 5.2.7.5 “Reconciliation of gross and net debt”. Changes on the equity capital of Compagnie 2.9 Plastic Omnium Compagnie Plastic Omnium share capital reduction 2.9.1 The Compagnie Plastic Omnium Board of Directors meetings of July 19, 2018 and October 30, 2018 decided, respectively, to cancel 1,100,613 treasury shares (0.74% of share capital) and 1,300,000 treasury shares (0.87% of the share capital previously reduced). The two transactions took effect on July 25 and November 8, 2018.