Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Comments on the year and outlook www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 128 COMMENTS ON THE YEAR AND OUTLOOK 4.1 COMMENTS ON THE CONSOLIDATED 4.1.1 FINANCIAL STATEMENTS IN 2018, CHANGE IN THE SCOPE AND PRESENTATION OF THE BUSINESSES OF COMPAGNIE PLASTIC OMNIUM Disposal of the Environment Division On December 18, 2018, Plastic Omnium sold its Plastic Omnium Environment BV Division to the consortium Latour Capital/Bpifrance (French public investment bank). Pursuant to IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” the 2018 result of the Environment business is presented on a separate line in the income statement – “Net Result of Discontinued Operations”, and the Group’s 2017 income statement has been restated likewise. Takeover of HBPO, world leader of front-end modules On June 26, 2018, 2018, Compagnie Plastic Omnium completed the acquisition of the German group Mahle’s 33.33% shareholding in the HBPO joint venture, up to then held by Plastic Omnium, Hella and Mahle. Plastic Omnium now holds a 66.67% share in HBPO, the world leader for front-end modules. HPBO assembles 6 millions front-end modules each year in 25 plants and 11 countries around the globe. Given the takeover of HBPO completed in July 2018 and pursuant to IFRS 10 – “Consolidated Financial Statements” – HBPO has been consolidated using the full consolidation method into the Group’s financial statements as from July 1, 2018. HBPO was consolidated using the equity method up until June 30, 2018. Since July 1, 2018, the Plastic Omnium Group’s consolidated revenue and economic revenue have included HBPO revenue at a rate of 100%; up until June 30, 2018, only a 33.33% share of this revenue was included in economic revenue. New presentation of the Group’s businesses around 2 automotive business lines Plastic Omnium now presents its automotive activity around two different business lines: Plastic Omnium Industries brings together the production businesses ● with 99 plants in 22 countries: Intelligent Exterior Systems, ● Clean Energy Systems; ● Plastic Omnium Modules incorporates the module assembly business ● with 25 sites in 11 countries: HBPO, dedicated to front-end modules. ● GROWTH IN REVENUE OF COMPAGNIE PLASTIC OMNIUM In millions of euros 2017 2018 Change Change like-for-like Plastic Omnium Industries 6,924.9 6,833.6 -1.3% +2.8% Plastic Omnium Modules 740.3 1,410.3 +90.5% +0.5% ECONOMIC REVENUE 7,665.1 8,243.9 +7.6% +2.4% Plastic Omnium Industries 6,433.0 6,287.8 -2.3% +2.0% Plastic Omnium Modules 0.0 956.9 na -na CONSOLIDATED REVENUE 6,433.0 7,244.6 +12.6% +1.6% In 2018, the economic revenue reported by Compagnie Plastic Omnium amounted to €8,243.9 million, growth of +7.6% compared to 2017. On a like-for-like basis, growth stands at +2.4%. The Group’s economic revenue takes account of negative exchange rate effects of €237.8 million and positive net effects from scope of €588.2 million, mainly on account of the full consolidation of HBPO as from July 1, 2018 for Plastic Omnium Modules. Consolidated sales reported by Compagnie Plastic Omnium amounted to €7,244.6 million as at December 31, 2018, growth of +12.6% and of +1.6% like-for-like. The Group’s consolidated revenue includes a negative exchange rate impact of €204.9 million and a positive scope impact of €895.4 million, due primarily to the full consolidation of HBPO as from July 1, 2018 for Plastic Omnium Modules.