Plastic Omnium - 2020 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 2020 Statutory auditors’ report on the consolidated financial statements www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 264 As describe in note 2.1.2, Indicators of impairment were identified during the fiscal year in connection with the global Covid-19 pandemic, in particular ● decreases in revenue across all Group entities in connection with site closings and a reduction in global production estimated by IHS at around -16.8% for the full year compared to 2019 and a performance for 2020 and the following years significantly lower than forecasted before the crisis. The valuation of capital assets related to development costs and the valuation of property, plant and equipment are considered as a key audit matter ● due to (i) their significant value in the Group’s consolidated financial statements, (ii) judgments to be made by Management to estimate the existence of an indication of impairment loss, including those related to the Covid-19 global pandemic and (iii) the assumptions used to assess the recoverable value of these assets. OUR RESPONSE Regarding the evaluation of property, plant and equipment we have: ● acknowledged the process and analyses performed by the Group; ● reconciled the file of assets subject to the impairment test with the consolidated financial statements; ● verified the arithmetical accuracy of the models used to determine the values in use; ● analyzed the key data and assumptions used to determine the recoverable amount by interviewing the Division CFO, the Group CFO and the CEO, and ● especially in the context of the Covid-19 global pandemic and its impact on performance in future years. Regarding the evaluation of the fixed assets related to the development costs, we have: ● obtain an understanding of the process performed by the Group to identify the development costs to capitalize; ● examine the estimated development costs incurred for a sample of automotive projects; ● test the amortization methods used in accordance with the principles set out in the consolidated financial statements; ● examine the process for the Management to estimate the existence of an indication of impairment loss at year-end and the key data and assumptions ● used to determine the recoverable amount, especially in the context of the Covid-19 global pandemic and its impact on performance in future years. Finally, regarding the valuation of these assets, we have as well: ● compared the discount rates and long-term growth rates used with our internal databases and the support of our evaluation specialists; ● performed sensitivity analyses on the main assumptions used. ● SPECIFIC VERIFICATIONS We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations of the Group’s information given in the management report of the Board of Directors. We have no matters to report as to their fair presentation and their consistency with the consolidated financial statements. We attest that the consolidated non-financial statement required by Article L. 225-102-1 of the French Commercial Code (Code de commerce) is included in the Group’s management report, it being specified that, in accordance with article L. 823-10 of this Code, we have verified neither the fair presentation nor the consistency with the consolidated financial statements of the information contained therein. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS FORMAT OF PRESENTATION OF THE FINANCIAL STATEMENTS INTENDED TO BE INCLUDED IN THE ANNUAL FINANCIAL REPORT In accordance with Article 222-3, III of the AMF General Regulation, the Company’s management informed us of its decision to postpone the presentation of the consolidated financial statements in compliance with the European single electronic format as defined in the European Delegated Regulation No 2019/815 of 17 December 2018 to years beginning on or after January 1 st , 2021. Therefore, this report does not include a conclusion on the compliance with this format of the presentation of the consolidated financial statements intended to be included in the annual financial report mentioned in Article L. 451-1-2, I of the French Monetary and Financial Code (code monétaire et financier) .