Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 197 CONTRIBUTIONS PAID IN RESPECT OF DEFINED 5.2.6.8 CONTRIBUTION PLANS Contributions paid in respect of defined contribution plans amounted to €14,014 thousand in 2018 compared with €11,594 thousand in 2017. Non-current borrowings 5.2.7 DEFINITION OF DEBT INSTRUMENTS WITHIN THE GROUP 5.2.7.1 Net debt is an important notion for the day-to-day management of Plastic Omnium cash. It is used to determine the Group’s debit or credit position outside of the operating cycle. Net debt is determined as: long-term borrowings: ● drawdowns on lines of credit, ● private placement notes, ● bonds; ● less loans, negotiable debt securities and other long-term financial ● assets (see Note 5.2.7.3 “Loans, negotiable debt securities and other financial assets”); plus short-term loans; ● plus overdraft facilities; ● less cash and cash equivalents. ● BORROWINGS: PRIVATE PLACEMENT NOTES 5.2.7.2 In 2018 New Schuldscheindarlehen private placement of €300 million: On December 21, 2018, the Group issued a private placement of €300 million for private investors, without “covenants” or “ratings”, mainly foreign (Germany, China, France, Belgium, Switzerland, Austria) and French, whose characteristics are reflected in the summary table below (see Note 2.8.1 in “Significant events of the period”). This placement at 1.6320% interest rate has a maturity of 7 years. Maturity of Europp private Placement: The private placement of a total of €250 million in 2012 by the Group matured on December 12, 2018. See Note 2.8.2 “Transactions in the period” and Note 5.2.7.5 “Gross financial debt and net financial debt”. At December 31, 2018 The main features of the bonds and private placements as at December 31, 2018 are summarised in the following table: December 31, 2018 Private bond of 2013 Schuldscheindarlehen private placement of 2016 Private placement bond issue of June 2017 Schuldscheindarlehen private placement of 2018 Issue – Fixed rate (in euros) 500,000,000 300,000,000 500,000,000 300,000,000 Annual interest rate/coupon 2.875% 1.478% 1.25% 1.6320% Features European investors International (Asia, Germany, Netherlands, Switzerland, Luxembourg, Belgium) and French investors European investors International (Germany, China, France, Belgium, Switzerland, Austria) and French investors No “covenants” and “ratings” Maturity May 29, 2020 June 17, 2023 June 26, 2024 December 21, 2025 LOANS, NEGOTIABLE DEBT SECURITIES AND OTHER 5.2.7.3 FINANCIAL ASSETS Other financial assets include loans, security deposits and surety bonds and negotiable debt securities and mutual funds holding cash and bonds (UCITS – Undertaking for Collective Investment in Transferable Securities). They are valued at amortized cost. Whenever there is any objective evidence of impairment –  i.e. a negative difference between the carrying amount and the recoverable amount – an impairment provision is recognized through profit or loss. This impairment is reversed if the amount recovered is favorable. assets are measured at their fair value at the closing date, and changes in fair value are recognized in net financial income. In 2018, a depreciation was recognized for an amount of -€822 thousand. Other financial assets also include short-term investment securities that do not meet the criteria for the equivalent of cash equivalents. These In 2015, the Group subscribed to four negotiable medium-term notes with a credit institution and in 2017, the Group invested in UCITS holding medium-term government bonds and cash, one of which matured this year. Negotiable medium-term notes agreed on July 13, 2015: The negotiable medium-term note of €10 million subscribed by the Group expired on July 11, 2018. See Note 2.8.3 in the “Significant events of the period” and Note 5.2.7.5 “Reconciliation of gross and net financial debt”.