Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Consolidated financial statements at December 31, 2020 PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 237 Provisions 5.2.4 In thousands of euros December 31, 2019 Allocations Utilizations Releases of surplus provisions Reclassi- fications Actuarial gains/ (losses) Translation adjustment December 31, 2020 Customer warranties 33,974 11,662 (8,806) (7,670) 42 - (489) 28,713 Reorganization plans (1) 31,015 26,827 (8,875) (310) (338) - (53) 48,266 Provisions for taxes and tax risks 804 224 (74) - - - - 954 Contract risks 20,113 16,267 (9,919) (4,176) 127 - (150) 22,262 Provisions for claims and litigation (2) 7,964 4,881 (1,157) (122) 427 - (724) 11,269 Other 6,460 2,976 (1,265) (237) (384) - (203) 7,348 PROVISIONS 100,332 62,837 (30,096) (12,515) - (126) - (1,619) 118,814 Provisions for pensions and other post-employment benefits 107,670 (2,153) (5,774) - - 3,659 (3) (3,071) 100,331 TOTAL 208,002 60,684 (35,870) (12,515) (126) 3,659 (4,690) 219,145 Provisions for reorganization relate primarily to significant restructuring in the “Industries” segment in Germany and in Belgium. (1) The increase during the period corresponds to operating disputes unrelated to the Covid-19 crisis and labor disputes. (2) The increase of the actuarial difference during the period is mainly explained by the decrease of the discount rate in the two main regions i.e. Europe (decrease (3) from 0.75% to 0.60%) and the United States (decrease from 3.20% to 3.11%) over the period. In thousands of euros December 31, 2018 Allocations Utilizations Releases of surplus provisions Reclassi- fications Actuarial gains/ (losses) Translation adjustment December 31, 2019 Customer warranties 26,898 17,554 (6,002) (5,169) 628 - 65 33,974 Reorganization plans 15,438 21,971 (6,408) - 45 - (31) 31,015 Provisions for taxes and tax risks 6,363 602 (6,450) - 289 - - 804 Contract risks (1) 29,654 9,123 (14,747) (4,417) 416 - 84 20,113 Provisions for claims and litigation 4,277 4,520 (435) (230) (19) - (149) 7,964 Other 8,082 4,249 (3,169) (1,387) (1,360) - 46 6,460 PROVISIONS 90,712 58,019 (37,211) (11,203) - - 15 100,332 Provisions for pensions and other post-employment benefits 105,184 3,055 (3,488) (13,497) (2) - 15,532 (3) 884 107,670 TOTAL 195,896 61,074 (40,699) (24,700) - 15,532 899 208,002 The changes in 2019 concerned loss-making contracts in the “Industries” segment. (1) The reversal of surplus provisions in 2019 was mainly due to the transition to a defined contribution pension plan of the US subsidiary Plastic Omnium Auto (2) Inergy LLC (see Note 4.6 “Other operating income and expenses” to the consolidated financial statements at December, 31, 2019). The change in actuarial gains and losses in 2019 was explained by the decrease in discount rates in 2019 from 1.6% to 0.75% for the euro zone and from (3) 4.25% to 3.2% for the United States zone. Please refer to Note 5.2.5 “Provisions for pensions and other post-employment benefits” to the consolidated financial statements at December 31, 2019.