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 250 At December 31, 2019 In thousands of euros December 31, 2019 Less than 1 year 1 to 5 years More than 5 years FINANCIAL ASSETS Non consolidated equity interests 199 - 199 - Long-term investments in equities and funds 56,302 - 56,302 - Other financial assets 14,656 - 14,656 - Finance receivables (1) 13,100 13,100 - - Trade receivables (2) 818,799 814,207 4,592 - Other current financial assets and financial receivables 55,127 55,127 - - Hedging instruments 5,027 5,027 - - Cash and cash equivalents 1,142,953 1,142,953 - - TOTAL FINANCIAL ASSETS 2,106,163 2,030,414 75,749 - FINANCIAL LIABILITIES Non-current borrowings (3) 1,403,692 82 1,036,967 366,644 Bank overdrafts 9,875 9,875 - - Current borrowings (4) 712,611 712,611 - - Hedging instruments 3,268 3,268 - - Trade payables 1,518,204 1,518,204 - - TOTAL FINANCIAL LIABILITIES 3,647,650 2,244,040 1,036,967 366,644 FINANCIAL ASSETS AND FINANCIAL LIABILITIES – NET (5) (1,541,487) (213,626) (961,218) (366,644) Undiscounted amounts (see Notes 5.1.8 “Current financial receivables” and 6.4.1 “Other long-term financial receivables”). (1) “Trade receivables” includes €63,053 thousand past due at December 31, 2019, against €59,960 thousand at December 31, 2018. See Note 6.3.1 on (2) “Customer risk”. “Non-current borrowings” includes the amounts reported in the balance sheet and interest payable over the remaining life of the borrowings. (3) “Current borrowings” includes the amounts reported in the balance sheet and interest due within one year. (4) See Note 5.2.6.6 on confirmed medium-term credit lines compared to usage: in 2019 and 2018, the confirmed and unused bank lines amply cover the Group’s (5) cumulated medium-term financing requirements. Currency risk 6.5 Plastic Omnium’s business is based for the most part on local plants: by producing locally what is sold locally, the Group has little exposure to currency fluctuations, except for the translation of financial statements of companies whose functional currency is not the euro. The Group’s policy is to minimize the currency risk arising from transactions that will result in future payment or future revenue. If a transaction does give rise to a material currency risk, it is hedged with a forward currency contract. The subsidiary involved places this hedge with the Group Treasury Department or, with the latter’s approval, locally. Interest rate risk 6.6 Interest rate risk relates to the possibility of an increase in variable rates for variable rate debt, which would adversely affect net financial income. Interest rate risk is managed on the basis of the Group’s consolidated debt with the main objective of maintaining a durably low consolidated financing cost in light of the Group’s operating profitability. At December 31, 2020 as at December 31, 2019, the Group’s core funding was at fixed rates (see Notes 5.2.6.9 “Analysis of debt by type of interest rate”). Financial transactions, particularly interest rate hedges, are carried out with a broad panel of leading financial institutions. A competitive bidding process is carried out for any significant financial transactions and maintaining a satisfactory diversification of resources and participants is a selection criterion. Additional information about financial assets 6.7 and liabilities Most derivatives are traded over-the-counter for which there are no listed prices. Therefore, their valuation is based on models commonly used by traders to value these financial instruments (models for discounting future cash flows or option valuation models).