Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Consolidated financial statements at December 31, 2020 www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 206 Asset impairment tests Impairment tests are carried out each year, in particular on goodwill and development costs relating to automotive projects, but also during the year on these same assets as well as on industrial assets if signs of impairment are identified. As part of these tests, for the determination of the recoverable amount, the concepts of fair value net of disposal costs and value in use obtained by the discounted cash flow method are used. These tests are based on assumptions about future operating cash flows and discount rates. Assumptions that could have a material impact on the financial statements concern, in particular, the discount rates and growth rates (see Note 2.1.2 “Asset impairment tests”). Sensitivity tests are performed on the long-term growth rate and discount rate assumptions for tests relating to goodwill and on the level of operating margin for tests relating to industrial assets. Lease contracts (IFRS 16) The discount rate is a key assumption in determining accounting impacts related to the application of IFRS 16 on leases It is used to calculate the right of use and the lease liability for each leased asset (see Note 1.1). Other uncertainties To date, the main uncertainty likely to impact significantly the assumptions is the “Covid-19 pandemic”. SIGNIFICANT EVENTS OF THE PERIOD NOTE 2 Covid-19 pandemic and impact on the financial statements The Covid-19 pandemic, which emerged in January 2020 in China and March 2020 in the rest of the world, led to the sudden shutdown of the Group’s plants and Research and Development centers, to the extent that its customers, the automotive manufacturers, shut their production lines. After a gradual recovery and reopening of all the Group’s plants in June 2020, the majority of plants resumed normal production rates in the second half of the year despite the continuation of the pandemic in the second half of 2020. A specific note is dedicated to the impacts and uncertainties related to this crisis: see Note 2.1 “Management by the Group of the Covid-19 crisis and the impacts on the Group’s financial statements”. International context and change in the automotive market The impact of the Covid-19 pandemic on the worldwide automotive production in 2020 compared to 2019 is presented below: In thousands of vehicles Source: IHS (1) 2020 2019 Change % Vehicle production 71,573 86,005 (14,431) -16.8% IHS: “IHS Markit”, an Anglo-American specialist economic information company, which publishes trends and forecasts, particularly for the automotive sector. (1) Publication: “IHS database as of Jan 15 th . 2021 – [0;3.5t PC + LCV]”. Management by the Group of the Covid-19 2.1 pandemic and impacts on the Group’s financial statements During the first-half of 2020, the Group was forced to close its production facilities in strict compliance with the provisions taken by the authorities of each country where the Group operates and in line with the automotive manufacturers’ production line shutdowns: The impacts directly linked to Covid-19 are described in the following notes. Reduction of plant activity 2.1.1 The table below shows the change in activity in the Group’s plants, which explains in particular the Group’s performance during the first half of 2020. In units Number of plants End January 2020 End February 2020 End March 2020 End April 2020 End May 2020 End June 2020 Operating Shut down Operating Shut down Operating Shut down Operating Shut down Operating Shut down Operating Shut down Group Total 131 131 131 131 131 131 By geographic area 131 - 131 - 50 81 50 81 120 11 131 - Europe and Africa 58 - 58 - 14 44 14 44 56 2 58 - Asia 46 - 46 - 36 10 36 10 45 1 46 - North America 21 - 21 - - 21 - 21 14 7 21 - South America 6 - 6 - - 6 - 6 5 1 6 - The Group sales ramped up gradually as customers resumed production in June 2020, achieving a normal production rate in the second half of 2020.

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