Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 159 SEGMENT INFORMATION NOTE 3 Information by operating segment 3.1 The Group uses the concept of “Economic revenue” for its operational management, which corresponds to the consolidated sales of the Group and its joint ventures at their ownership percentage: Yanfeng Plastic Omnium, a Chinese leader in exterior body parts and BPO major player in the Turkish market for exterior equipment. Since the takeover of HBPO (world leader in body block-front-end modules) in July 2018, the Group has organized its automotive business around two operating segments (see Note on the “Group Presentation”): Industries; and ● Modules. ● The columns in the tables below show the amounts of each sector. The “Unallocated items” column groups together inter-segment eliminations and amounts that are not allocated to a specific sector (in particular, holding company activity) by allowing for the reconciliation of segment data with the Group’s financial statements. Financial results, taxes and the share of profit/(loss) of associates are monitored at Group level and are not allocated to the sectors. Transactions between sectors are carried out on an arm’s length basis. Income statement by operating segment 3.1.1 In thousands of euros 2018 Industries Modules Unallocated items (2) Total Economic sales (revenue) (1) 6,833,613 1,410,321 - 8,243,934 Including Sales from joint ventures at the Group’s percentage stake 545,840 453,458 - 999,298 Sales to third parties 6,287,808 956,863 (35) 7,244,636 Sales between segments (35) - 35 - Consolidated sales (revenue) 6,287,773 956,863 - 7,244,636 % of segment revenue – Total 86.8% 13.2% 100.0% Operating margin before amortization of intangible assets acquired in business combinations and before share of profit of associates and joint ventures 545,376 31,290 - 576,666 % of segment revenue 8.7% 3.3% 8.0% Amortization of intangible assets acquired in business combinations (9,681) (8,773) - (18,454) Share of profit/(loss) of associates and joint ventures (3) 41,925 9,964 - 51,889 Operating margin 577,619 32,481 - 610,100 % of segment revenue 9.2% 3.4% 8.4% Other operating income 281,394 (1,522) - 279,872 Other operating expenses (166,050) 560 - (165,490) % of segment revenue 1.8% -0.1% 1.7% Finance costs, net (69,116) Other financial income and expenses, net (1,088) PROFIT FROM CONTINUING OPERATIONS BEFORE INCOME TAX AND AFTER SHARE IN ASSOCIATES AND JOINT VENTURES 654,278 Income tax (112,996) Net income after income tax from continuing operations 541,283 Net income after income tax from discontinued operations 1,494 NET INCOME 542,777 Economic sales (revenue) correspond to the sales of the Group and its joint ventures consolidated at their percentage of ownership. (1) “Unallocated items” correspond to inter-segment eliminations and amounts that are not allocated to a specific segment (for example, holding company activities (2) and Environment Division’s discontinued operations, sold in December 2018; see Note 2.6.1 “Significant Events of the period”). This column is included to enable segment information to be reconciled to the Group’s financial statements. See in “Significant Events of the period”, Note 2.3.1 related to the acquisition of the 33.33% equity stake in HBPO from Mahle-Behr on June 26, 2018. (3)