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 202 AMOUNTS RECOGNIZED IN EQUITY UNDER “OTHER COMPREHENSIVE INCOME” 5.2.8.1.2 The amounts below are expressed in gross value before tax. In thousands of euros Balance before tax recorded in OCI (1) at December 31, 2017 Change in fair value of derivatives Amount reclassified in profit and loss over the period Fair value adjustments reclassified in profit or loss December 31, 2018 Effect of August 2010 and February 2012 restructuring of the derivatives portfolio (2) 1,020 - (803) 217 Effect of June 2013 restructuring of the derivatives portfolio (1,900) - 1,628 (272) Effect of the rate hedging of Schuldschein maturing in 2025 (1,823) 8 (1,815) TOTAL (880) (1,823) 833 (1,870) In thousands of euros Balance before tax recorded in OCI (1) at December 31, 2016 Change in fair value of derivatives Amount reclassified in profit or loss in the period Fair value adjustments reclassified in profit or loss December 31, 2017 Effect of August 2010 and February 2012 restructuring of the derivatives portfolio (2) 1,824 - (804) 1,020 Effect of June 2013 restructuring of the derivatives portfolio (3,530) - 1,630 (1,900) TOTAL (1,706) - 826 (880) OCI: Other Comprehensive Income. (1) Restructuring of derivatives portfolio to extend maturity of hedging instruments. (2) IMPACT OF HEDGING ON THE INCOME STATEMENT 5.2.8.1.3 In thousands of euros December 31, 2018 December 31, 2017 Effective component of hedging instruments related to derivatives portfolio (hedging of accrued interest over the period) (2,970) (3,260) Reclassification in profit or loss of accumulated gains and losses following past restructurings (1) (825) (826) Reclassification in profit or loss of accumulated gains and losses related to interest rate hedging (8) - Time value of caps - 299 Changes in fair value of instruments that do not qualify for hedge accounting 2,898 3,022 TOTAL (2) (905) (765) See Note 5.2.8.1.2 “Foreign exchange hedge Instruments”, the amounts reclassified in profit or loss. (1) See “Gains or losses on interest rate and currency hedges” in Note 4.7 “Net financial income”. (2) also the impact of currency hedges in Note 5.2.8.2. See CURRENCY HEDGES 5.2.8.2 The Group uses derivatives to hedge its exposure to currency risk. Since 2016, the Group has opted for a policy to hedge the highly probable future transactions in foreign currencies of its entities. Hedging instruments implemented in this respect are forward purchases of foreign currency. The Group has applied to these instruments the accounting treatment ofcash-flow hedges as planned: instruments are valued at fair value and changes in value are recognized in equity for the effective portion. These amounts recognized in equity are reported in profit or loss when the hedgedcash-flows affect the income. Instruments are valued at fair value and changes in value and their settlement are recognized in equity. At December 31, 2018, the fair value of the instruments implemented and thus recognized was -€1,946 thousand of which -€1,695 thousand was recognized in equity. Changes in the fair value of other currency hedging instruments are recognized in net financial income.