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 206 None of the Group’s bank loans or financial liabilities contains covenants providing for early repayment in the event of non-compliance with financial ratios. As part of its capital management, the liquidity account shows the following positions: at December 31, 2018: ● 110,583 securities (shares), ● and €9,035 in cash. ● An additional contract of €3 million for the liquidity agreement was concluded with Kepler Cheuvreux (responsible for monitoring the purchase and sale on behalf of the Group of its shares on the Euronext Paris market) on January 28, 2019; at December 31, 2017: ● 9,500 securities (shares), and ● €3,552,108 in cash. ● Commodities risk – Exposure to plastics risk 6.2 Plastic Omnium’s business requires the purchase of large quantities of plastic, steel, paint and other raw materials subject to price changes that could have an impact on its operating margin. To limit the risks associated with price fluctuations, the Group has negotiated price indexation clauses with most of its automotive customers or, failing that, regularly renegotiates selling prices. In view of these measures, the Group considers that the price changes of the raw materials do not have a material impact on its operating margin. Credit risk 6.3 Credit risk covers customer credit risk and bank counterparty risk. Customer risk 6.3.1 At December 31, 2018, 7.4% of the Group’s trade receivables were past due, versus 13.2% at December 31, 2017. Trade receivables break down as follows: AGEING ANALYSIS OF NET RECEIVABLES In thousands of euros At December 31, 2018 Total outstanding Not yet due Due and past due Less than 1 month 1-6 months 6-12 months More than 12 months Industries 659,608 602,083 57,525 30,926 14,368 6,131 6,100 Modules 141,347 138,916 2,431 1,811 620 - - Unallocated items 14,345 14,341 4 4 - - - TOTAL 815,300 755,340 59,960 32,741 14,988 6,131 6,100 In thousands of euros At December 31, 2017 Total outstanding Not yet due Due and past due Less than 1 month 1-6 months 6-12 months More than 12 months Automotive 886,624 772,123 114,501 73,557 23,287 13,186 4,471 Environment 46,369 36,849 9,520 4,995 3,792 654 79 Unallocated items 7,091 7,091 - - - - - TOTAL AT DECEMBER 31, 2017 940,084 816,063 124,021 78,552 27,079 13,840 4,550 1 st application of IFRS 15 (124,507) (124,507) - - - - - 1 st application of IFRS 9 (1,939) - (1,939) - - - (1,939) TOTAL AT JANUARY 1, 2018 813,638 691,556 122,082 78,552 27,079 13,840 2,611 The risk of non-recovery is low and involves only a non-material amount of receivables more than twelve months past due. Bank counterparty risk 6.3.2 The Group invests its cash surplus with first class banks and/or in leading securities.