Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Consolidated financial statements at December 31, 2020 PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 221 Income tax analysis – Tax proof 4.8.2 Analysis of the income tax expense includes the following: In thousands of euros 2020 2019 Totals % (1) Totals % (1) Consolidated loss (profit) on continuing activities before tax and share of profit/(loss) of associates and joint ventures (A) (313,154) 329,376 Tax rate applicable in France (B) 32.02% 34.43% THEORETICAL TAX INCOME (EXPENSE) (C) = (A) X (-B) 100,272 - (113,404) - Difference between the theoretical tax expense and the current and deferred tax expense excluding tax assessed on net interim profit on continuing activities (D) (69,270) 22.1% 23,544 7.1% Tax credits 34,015 -10.9% 51,145 15.5% Permanent differences between accounting profits and taxable profits (7,245) 2.3% (11,730) -3.6% Change in unrecognized deferred taxes (79,174) 25.3% (27,324) -8.3% Impact on deferred tax of a tax rate change (882) 0.3% 773 0.2% Impact of differences in foreign tax rates (12,149) 3.9% 21,377 6.5% Contribution to Value Added (5,100) 1.6% (6,700) -2.0% Other impacts 1,265 -0.4% (3,997) -1.2% TOTAL CURRENT AND DEFERRED TAX INCOME (EXPENSE) ON CONTINUING ACTIVITIES (E) = (C) + (D) 31,002 - (89,860) - EFFECTIVE TAX RATE (ETR) ON CONTINUING ACTIVITIES (E)/(A) 9.9% 27.3% Percentage expressed in relation to the consolidated profit on continuing activities before tax and share of profit/(loss) of associates and joint ventures (C). (1) The Group’s effective tax rate was 9.9% in 2020 (27.3% for 2019). In 2020, the tax recognized was €31 million of tax income for a theoretical tax income of €100 million, based on a tax rate of 32.02%. In 2019, the tax recognized was €90 million of tax expense for a theoretical tax expense of €113 million, based on a tax rate of 34.43%. The difference between the tax recognized and the theoretical tax mainly reflects: €34 million in specific tax reductions or tax credits mainly in North ● America, Belgium, Asia and France (€51 million for at December 31, 2019); (€21 million at December 31, 2019). The difference between the tax rate in France and countries with lower tax rates has a favorable impact on profits and an opposite effect when loss-making. Over the period, the losses linked to the collapse in activity due to the Covid-19 crisis had an unfavorable impact on the ETR; a -€12 million impact from lower taxes, mainly in Asia (China, Thailand), ● the United States and Europe (excluding France and Belgium) a -€79 million effect through the effect of losses or other assets ● generated in the year but not recognized, net of those previously not capitalized but used or recognized during the year (-€27 million at December 31, 2019) – Please refer to Note 2.1.3 “Deferred tax assets” in “Significant events of the period”; and -€7 million in permanent differences between accounting profits and ● taxable income (-€12 million at December 31, 2019 mainly due to taxable dividends).