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 174 NOTES TO THE BALANCE SHEET NOTE 5 As stated in the introduction, the Group applied IFRS 5 to the assets and liabilities of the Environment Division (held for sale) on June 30, 2018. Therefore, the assets and liabilities intended for sale were entered on different consolidated balance sheet assets and liabilities lines at June 30, 2018. In accordance with IFRS 5, this presentation is not applied to the 2017 data provided for comparison. Assets 5.1 Goodwill 5.1.1 For the 2018 fiscal year, the assumptions for impairment tests carried out at the level of the cash generating units (CGU) (see Note 1.1.13) or groups of cash generating units (business segments) are Industries and Modules: a growth rate of 1.5% to infinity; and ● a 9.0% after-tax discount rate. ● These assumptions are identical to those used for the 2017 fiscal year. The tests conducted do not lead to the recording of any impairment of the Group’s goodwill at December 31, 2018. An increase in the discount rate of 0.5% or a reduction of 0.5% in the long-term growth rate or a decrease of 0.5% in the operating margin rate would have no impact on the test results. In the Industries and Modules CGUs, only unreasonable assumptions could jeopardize the test results. Unreasonable assumptions means a negative long-term growth rate combined with a discount rate increased by more than two points. Goodwill In thousands of euros Gross value Impairments Net value GOODWILL AT JANUARY 1, 2017 579,958 - 579,958 IFRS 5 reclassifications 255 - 255 Sale of the Truck business from the Intelligent Exterior Systems Division (245) - (245) Goodwill on the acquisition of new companies in the Clean Energy Systems Division of the Industries segment 13,869 - 13,869 Translation differences (9,152) - (9,152) GOODWILL AT DECEMBER 31, 2017 584,685 - 584,685 Removal of goodwill linked to Environment Division (1) (98,525) - (98,525) Goodwill adjustment on the acquisition of new companies in the Fuel Systems Division of the Automotive segment (2) (303) - (303) Goodwill on HBPO acquisition (3) 524,795 - 524,795 Translation differences 5,078 - 5,078 GOODWILL AT DECEMBER 31, 2018 1,015,730 - 1,015,730 See Note 2.6.1 “Disposal of the Environment business” in the section “Significant events of the period”. (1) See Note 2.4 “Monitoring of 2017 acquisitions and investments” in the section “Significant events of the period”. (2) See Note 2.3.1 “Acquisition by the Group of Mahle-Behr’s 33.33% interest in HBPO” in the section “Significant events of the period”. (3) Hereafter, goodwill by reportable segment: Goodwill by reportable segment In thousands of euros Gross value Impairments Net value Industries 490,935 - 490,935 Modules 524,795 - 524,795 VALUE AT DECEMBER 31, 2018 1,015,730 - 1,015,730 Automotive 486,160 - 486,160 Environment 98,525 - 98,525 VALUE AT DECEMBER 31, 2017 584,685 - 584,685