Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 209 In thousands of euros At December 31, 2017 December 31, 2017 Less than 1 year 1 to 5  years More than 5 years Financial assets Available-for-sale financial assets – Equity interests 316 - 316 - Other available for sale financial assets 27,514 - 27,514 - Other financial assets 49,802 - 49,802 - Finance receivables (1) 53,103 42,889 10,058 156 Trade receivables (2) 940,084 935,534 4,550 - Other current financial assets and financial receivables 83,209 83,209 - - Hedging instruments 5,254 5,254 - - Cash and cash equivalents 939,635 939,635 - - TOTAL FINANCIAL ASSETS 2,098,917 2,006,521 92,240 156 Financial liabilities Non-current borrowings (3) 1,427,177 11,332 599,713 816,133 Bank overdrafts 9,993 9,993 - - Current borrowings (4) 393,796 393,796 - - Other current debt 4 4 - - Hedging instruments 5,618 5,618 - - Trade payables 1,233,221 1,233,221 - - TOTAL FINANCIAL LIABILITIES 3,069,810 1,653,964 599,713 816,133 FINANCIAL ASSETS AND FINANCIAL LIABILITIES – NET (5) (970,893) 352,557 (507,473) (815,977) Undiscounted amounts (see Notes 5.1.10 “Current financial receivables” and 6.4.1 “Other long-term financial receivables”). (1) “Trade receivables” includes €90,036 thousand past due at December 31, 2017, against €49,521 thousand at December 31, 2016. See Note 6.3.1 on (2) “Customer credit risk”. “Non-current borrowings” includes the amounts reported in the balance sheet and interest payable over the remaining life of the debt. (3) “Current borrowings” includes the amounts reported in the balance sheet and interest due within one year. (4) See Note 5.2.7.4 on confirmed medium-term credit lines compared to usage in 2017 and 2016, the confirmed and unused bank lines largely cover the Group’s (5) cumulated medium-term financing requirements. Currency risks 6.5 Plastic Omnium’s business is based for the most part on local plants: by producing locally what is sold locally, the Group has little exposure to currency fluctuations, except for the translation of financial statements. The Group’s policy is to minimize the currency risk arising from transactions that will result in future payment or future revenue. If a transaction does give rise to a material currency risk, it is hedged with a forward currency contract. The subsidiary involved places this hedge with the central treasury or, with the latter’s approval, locally. Interest rate risk 6.6 Interest rate risk relates to the possibility of an increase in variable rates for variable rate debt, which would adversely affect net financial income. Interest rate risk is managed on the basis of the Group’ s consolidated debt with the main objective of maintaining a durably low consolidated financing cost in light of the Group’ s profitability. At December 31, 2018 as at December 31, 2017, the Group’s core funding was at fixed rates (see Notes 5.2.7.7 “Analysis of debt by type of interest rate” and 5.2.8.1 “Interest rate hedges”). Financial transactions, particularly interest rate hedges, are carried out with a panel of leading financial institutions. A competitive bidding process is carried out for any significant financial transactions and the diversification of resources and satisfactory participants is a selection criterion. Sensitivity to interest rate changes At December 31, 2018, an increase of 1% in interest rates on variable rate debt would lead to a net increase of €1.4 million in interest expense after taking into account the impact of hedging instruments compared with an increase of €1.3 million (of the interest expense after taking into account the impact of hedging instruments for a 1% increase in the interest rate on variable rate debt) at December 31, 2017.