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 210 Monitoring of 2019 financial investments 2.2.3 in AP Ventures During the fiscal year 2020, as co-sponsor and member of the Investment Advisory Committee, Compagnie Plastic Omnium SE paid AP Ventures, a London-based venture capital firm specializing in hydrogen and fuel cells, a total of €2.7 million (equivalent to $3.1 million). Compagnie Plastic Omnium SE committed to invest $30 million over the life of the fund. The Group’s total payment amounted to €3.9 million (equivalent to $4.8 million) as at December 31, 2020 (see Note 5.1.6.1 “Long-term investments in equities and funds”). Change in the international economy and impacts 2.2.4 on the Group’s financial statements “BREXIT”: EXIT OF THE UNITED KINGDOM 2.2.4.1 FROM THE EUROPEAN UNION The United Kingdom left the European Union (EU) on December 31, 2020 following the referendum of June 23, 2016. Plastic Omnium Group operates two subsidiaries in the UK, “Plastic Omnium Automotive Ltd” and “HBPO UK Ltd”: for fiscal years 2019 and 2020, the two companies held contributed to ● 5% of the Group’s revenues; the Group anticipated the implementation of customs control formalities ● and increased its inventories to secure production and does not expect any significant impact related to Brexit; and change in the pound sterling over the last two years (closing rate): ● December 31, 2019: 1 euro is exchanged for 0.851 pound, ● December 31, 2020: 1 euro is exchanged for 0.899 pound. ● MONITORING OF HYPERINFLATION IN ARGENTINA 2.2.4.2 AND IMPACTS ON THE GROUP’S FINANCIAL STATEMENTS The economic crisis in Argentina continues and is combined with the effects of the Covid-19 pandemic. The Argentine peso exchange rate has dropped by 53% since December 31, 2019. At December 31, 2020, the assets of the three subsidiaries Plastic Omnium Auto Inergy Argentina SA (Clean Energy Systems), Plastic Omnium Argentina and Plastic Omnium Automotive Argentina (Intelligent Exterior Systems) were revalued. The impacts related to hyperinflation on the main income statement aggregates and recognized atDecember 31, 2020 are as follows: In thousands of euros 2020 2019 Impact on the Group’s revenue ● +€3,814 +€9,594 Impact on the Group’s operating margin ● +€677 -€331 Impact on the Group’s financial income ● -€3,713 -€2,984 Impact on the Group’s other operating expense ● -€2,858 +€276 Impact on the Group’s tax expense ● +€290 -€979 Impact on the Group’s net income ● -€5,604 -€4,019