Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 205 Sensitivity tests on changes in foreign exchange rates of “Trade payables and other liabilities” give the following results: In thousand of currency units Sensitivity tests on liabilities at December 31, 2018 Sensitivity tests on liabilities at December 31, 2017 Base Increase – all currencies Decrease – all currencies Base Increase – all currencies Decrease – all currencies +10% +20% -10% -20% +10% +20% -10% -20% Local currency Conversion rate % % % % Local currency Conversion rate % % % % EUR Euro 1,390,737 1.0000 52% 50% 57% 60% 1,138,805 1.0000 54% 52% 59% 62% USD US dollar 684,139 0.8734 25% 26% 22% 21% 538,656 0.8338 23% 24% 21% 19% GBP Pound sterling 117,196 1.1179 5% 6% 5% 5% 118,456 1.1271 7% 7% 6% 6% CNY Chinese yuan 1,010,547 0.1270 5% 6% 5% 4% 878,575 0.1281 6% 6% 5% 5% BRL Brazilian real 146,333 0.2250 1% 1% 1% 1% 174,635 0.2517 2% 2% 2% 2% Other Other currencies 12% 11% 10% 9% 8% 9% 7% 6% TOTAL IN EUROS 2,542,395 2,657,561 2,772,727 2,427,229 2,312,063 2,023,119 2,111,554 2,199,985 1,934,690 1,846,258 Of which: Trade payables 1,614,989 1,688,145 1,761,301 1,541,833 1,468,677 1,233,221 1,287,126 1,341,030 1,179,316 1,125,411 Other operating liabilities 927,406 969,416 1,011,426 885,396 843,386 789,898 824,428 858,955 755,374 720,847 1 st application of IFRS 9 - - - - - 1 st application of IFRS 15 170,415 177,439 184,373 163,572 156,638 TOTAL AT JANUARY 1, 2018 2,193,534 2,288,993 2,384,358 2,098,262 2,002,896 Of which: Trade payables 1,233,221 1,287,126 1,341,030 1,179,316 1,125,411 Other operating liabilities 960,313 1,001,867 1,043,328 918,946 877,485 Foreign exchange sensitivity tests on “Trade payables and other liabilities” and “Trade and other receivables” show an insignificant net sensitivity to exchange rate fluctuations as of December 31, 2018. (See Note 5.1.10). CAPITAL MANAGEMENT AND MARKET NOTE 6 RISKS Compagnie Plastic Omnium has set up a global cash management system with its subsidiary Plastic Omnium Finance, which manages liquidity, currency and interest rate risks on behalf of all subsidiaries. The market risks strategy, which may result in entering balance sheet and off-balance sheet commitments, is approved every quarter by the Chairman and Chief Executive Officer. Capital management 6.1 The Group’s objective is to have, at all times, sufficient financial resources to enable it to carry out its current business, fund the investments required for its development and also to respond to any exceptional events. This is achieved through the use of capital markets, leading to capital and financial debt management. As part of its capital management strategy, the Group pays dividends to its shareholders and may make adjustments in line with changes in economic conditions. The capital structure may be adjusted by paying ordinary or special dividends, through share buybacks and cancellation of treasury stock, returning a portion of capital to shareholders or issuing new shares and/or securities giving rights to capital. The Group uses the gearing ratio, corresponding to the ratio of consolidated net debt to equity, as a ratio of the Group’s net debt. The Group includes in net debt all financial liabilities and commitments, other than operating payables, bearing interests, less cash and cash equivalents and other financial assets, other than operating receivables, such as marketable securities and loans. At December 31, 2018 and December 31, 2017, the gearing ratio was as follows: In thousands of euros December 31, 2018 December 31, 2017 Net debt (1) 697,616 562,985 Equity (including non-current government grants) 2,188,321 1,760,791 GEARING RATIO 31.88% 31.97% See Note 5.2.7.5 “Reconciliation of gross and net debt”. (1)