Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Consolidated financial statements at December 31, 2020 PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 209 COMPAGNIE PLASTIC OMNIUM SE REPAYMENT 2.2.1.3 OF THE €500 MILLION BOND ISSUED IN 2013 On May 29, 2020, Compagnie Plastic Omnium SE repaid the €500 million bond issued without covenant or rating on May 21, 2013 to European investors. See Notes 5.2.6.2 “Borrowings: private placement notes and bonds” and 5.2.6.7 “Reconciliation of gross and net financial debt”. MATURITY OF NEGOTIABLE MEDIUM-TERM NOTES 2.2.1.4 AND SALE OF INVESTMENTS IN UCITS OF COMPAGNIE PLASTIC OMNIUM SE The last negotiable medium-term note (NMTN), subscribed on February 24, 2015 by Compagnie Plastic Omnium SE, matured in the first-half of 2020. Compagnie Plastic Omnium SE also sold its investments in UCITS (Undertaking for Collective Investment in Transferable Securities) with a nominal value of €50 million purchased in 2017. See Notes 5.2.6.4 “Loans, negotiable debt securities and other financial assets” and 5.2.6.7 “Reconciliation of gross and net financial debt”. Change in the scope of consolidation during 2.2.2 the fiscal year 2020 and monitoring of previous changes in the scope of consolidation PARTNERSHIP SIGNED IN 2020 WITH THE GERMAN GROUP 2.2.2.1 ELRINGKLINGER AG WITH EFFECT FROM 2021: “EKPO” AND “EKAT” The Plastic Omnium Group and ElringKlinger AG, a German family-owned, stock exchange-listed group, manufacturer of automotive spare parts headquartered in Dettingen (Bavaria), signed an agreement on October 28, 2020 to create a joint venture, EKPO Fuel Cell Technologies. The new EKPO Fuel Cell Technologies joint venture will be dedicated to the development, production and marketing of fuel cells for carbon-free mobility and its head office will be in Dettingen/Erms (Baden-Württemberg). The ElringKlinger Group will contribute its business, its technology and will own 60% of the new company. The Plastic Omnium Group will provide its technological expertise in hydrogen storage and hydrogen systems, its portfolio of international customers and a development capacity of up to €100 million for a 40% holding. In addition, the two partners signed on the same day an agreement for the acquisition by the Plastic Omnium Group of 100% of the Austrian subsidiary of ElringKlinger specializing in integrated hydrogen systems, ElringKlinger Fuelcell Systems Austria GmbH (EKAT), for an enterprise value of €15 million. Both agreements are subject to competition authorities and customary legal requirements. They should be validated during the first quarter of 2021. The company “EKPO” will be consolidated in the financial statements of Plastic Omnium Group using the equity method and the company “EKAT” will be fully consolidated. THE TAKEOVER OF HBPO HICOM IN MALAYSIA 2.2.2.2 HBPO GmbH acquired on October 1, 2020, for an amount of €0.8 million, 11% of HBPO Hicom in Malaysia, increasing its stake from 40% to 51%. With this additional equity investment, the Group controls Hicom (percentage of interest at 34%). Before the transaction, HBPO Hicom was consolidated using the equity method. As of December 31, 2020, it is fully consolidated. The transaction led to the recognition of €2.3 million in income deriving from the revaluation of the 40% share held before the take-over on the basis of its fair value, recognized in the income statement in “Other operating income and expenses” (see Note 4.6). This income corresponds to the difference between the carrying amount of the investment on the date control is taken and the fair value of this investment. SALE OF THE GROUP’S EQUITY INVESTMENT 2.2.2.3 IN PO-CELLTECH On June 3, 2020, Plastic Omnium Group sold its equity investment in PO-CellTech, a start-up focusing on fuel cells and supercapacitors, to its partner, the Israeli company ELBIT Systems. PO-CellTech was recognized in the Group’s financial statements using the equity method, respectively in “Share of profit/loss of associates and joint ventures” and “Investments in associates and joint ventures” in the income statement and balance sheet (respectively see Notes 4.5 and 5.1.5). The transaction had no impact on the net income of the period. MEMORANDUM OF UNDERSTANDING RELATED 2.2.2.4 TO THE DISPOSAL OF THE ENVIRONMENT DIVISION (SULO SAS) On April 6, 2020, Compagnie Plastic Omnium SE signed a settlement agreement related to the disposal by Compagnie Plastic Omnium SE of the Environment Division (which became Sulo SAS) on December 18, 2018 to the consortium “Latour Capital/Bpifrance (Public investment bank)”. As such, an amount of €0.4 million, fully provisioned in the financial statements at December 31, 2019, was paid to the buyer.