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 170 At December 31, 2018: (1) Pre-start costs for new plants: All of the costs incurred in 2018 relate to Intelligent Exterior Systems factories in the Industries Division (mainly the Greer plants in the United States, Hlohovec in Slovakia and San Luis Potosi in Mexico). (2) Reorganization costs: Reorganization costs mainly relate to significant restructuring in the Intelligent Exterior Systems Division: continued reorganization of the German Faurecia Automotive Exteriors plants acquired in 2016 and closure of the Norcross plant in the United States. (3) Impairment of non-current assets: Impairments of non-current assets mainly correspond to: -€22,290 thousand for production assets and Intelligent Exterior ● Systems projects: Faurecia Automotive Exteriors Germany sites acquired in 2016, Lozorno and Gliwice in Poland and Anderson in the United States; -€18,600 thousand for project assets following program production ● discontinuation decisions and to volume downward revisions of Clean Energy Systems plants in the following countries: Belgium, Mexico, Poland, China and United States. (4) Provisions for charges: This heading mainly includes provisions for quality disputes and sales price differences with several car manufacturers. (5) Litigation: This heading mainly corresponds to provisions for commercial disputes with several car manufacturers. (6) Foreign exchange gains and losses on operating activities: Virtually all of the foreign exchange losses on 2018 are realized in the Automotive segment and covers various currencies including the dollar, the Argentine peso (see Note 2.10.1 “Hyperinflation in Argentina and the impacts on the Group’s accounts” in the “Significant events of the period” of the period), the Mexican peso and the renminbi. (7) Fees and ancillary costs related to changes in scope: These are costs relating to the various external growth transactions in progress or recently completed, including the acquisition of the additional 33.33% stake in HBPO (see Note 2.3.1 in the “Significant events of the period”). (9) Perimeter change of scope for Modules: See Note 2.3.1.2 “Accounting treatment of the HBPO takeover” in “Significant events of the period”. (11) Hyperinflation in Argentina: See Note 2.10.1 “Hyperinflation in Argentina and Impacts on the Group’s Accounts” in the “Significant events of the period”. (12) Impairment of securities and financial receivables: These are impairments of equity securities and shares in non-consolidated funds and the impairment of a financial receivable resulting from a court decision. (13) Other: Non-material amounts taken individually At December 31, 2017: (1) Pre-start-up costs at new plants: Costs incurred in 2017 concerned the construction of new plants, including, for the Intelligent Exterior Systems Division of the Industries segment, Greer in the United States and San Luis Potosi in Mexico (see Note 2.2 “Investments and site openings” in the consolidated accounts published at December 31, 2017). (2) Reorganization costs: Reorganization costs related to the significant restructuring of the Intelligent Exterior Systems Division. (3) Impairment of non-current assets: This item included impairments mainly on assets of the Automotive Division and the reversal of the provision for impairment on the assets of Herford following the sale of the Sulo Emballagen GmbH industrial and office buildings in Germany. (4) Provisions for charges: The provisions corresponded to several quality and tax risks. (5) Disputes: This item concerned legal fees and expenses relating to several disputes involving the Environment Division. (6) Foreign exchange gains and losses on operating activities: Almost all foreign exchange losses were borne by the Industries segment and covered various currencies including the Argentine peso, the Brazilian real and the Chinese renminbi. Losses on all currencies break down as follows: 56.8% for the Intelligent Exterior Systems Division of the Industries ● segment; and 43.2% for the Clean Energy Systems Division of the Industries segment. ● (7) Impacts of acquisitions: related fees and expenses: These included fees for the external growth transactions completed in 2017 and the external growth transactions initiated in the previous year. (8) Reduction of the acquisition price of the Faurecia Exterior Systems business: See the final price in Notes 2.1.1.3 “Final agreement between Plastic Omnium and Faurecia on the acquisition price of the Faurecia Exterior Systems business” and 2.1.1.4 “Accounting treatment of the acquisition in Plastic Omnium’s accounts” in the consolidated accounts of December 31, 2017. (9) The section “Impact of the first implementation of the Competitiveness and Employment Tax Credit-CICE for French entities”: See Note 2.5.1 on the implementation of the Competitiveness and Employment Tax Credit-CICE for French entities in the “Significant events of the period” of the consolidated accounts at December 31, 2017. (10) Others: Non-material amounts taken individually.