Plastic Omnium - 2020 Universal Registration Document

2020 STATUTORY FINANCIAL STATEMENTS Comments on the statutory financial statements www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 268 $# $ #$ $%$ ") #$ $ $# 6.1 BALANCE SHEET CHANGES The main changes involved the following transactions: since February 13, 2020, Compagnie Plastic Omnium SE has held the ● shares of Plastic Omnium Modules, whose sole business today is to hold the shares of HBPO, a company specializing in the design, development and assembly of automotive modules. These shares, valued at €101.4 million, were granted by its subsidiary Plastic Omnium Auto Exteriors SA by way of a cash contribution. Prior to this transaction, Compagnie Plastic Omnium SE subscribed to a capital increase of the subsidiary Plastic Omnium Auto Exteriors SA for €156.6 million on January 22, 2020; on May 29, 2020, Compagnie Plastic Omnium SE repaid the €500 ● million bond issued in 2013 that had reached maturity. At December 31, 2020, the amount of bonds and Schuldschein loans amounted to €1.1 billion; Compagnie Plastic Omnium SE set up an additional €530 million of ● credit lines, bringing the outstanding amount of confirmed medium-term credit lines to €1,870 million at December 31, 2020. In addition, €200.5 million of commercial paper has been issued by the Company at December 31, 2020; on November 23, 2020, Compagnie Plastic Omnium SE subscribed to a ● capital increase of the reserves its subsidiary Plastic Omnium GmbH with a cash contribution of €110 million. Plastic Omnium GmbH holds the shares of the German companies in the Intelligent Exterior Systems and Clean Energy Systems divisions. Furthermore, provisions for the impairment of the securities of this entity were recognized for €60 million at December 31, 2020; upon authorization by the Combined Shareholders’ Meeting of April 26, ● 2018, the Board of Directors decided on December 11, 2020 to freely award 228,373 performance shares to the employees and corporate officers of Compagnie Plastic Omnium SE and/or of companies in its Group. Performance shares will vest on April 30, 2024. The cost associated with this plan was estimated at €3.6 million on December 31, 2020. On the vesting date of the shares, the relevant subsidiaries with plan beneficiaries will be re-invoiced; Compagnie Plastic Omnium SE continued its share buyback program ● under the authorization granted by the Combined Shareholders’ Meeting of April 23, 2020. Buybacks carried out in fiscal year 2020 totaled €12.1 million; at December 31, 2020, Compagnie Plastic Omnium’s financial position ● showed positive net cash of €335.5 million versus positive net cash of €532.9 million at December 31, 2019. EARNINGS PERFORMANCE Compagnie Plastic Omnium SE posted operating revenue of €31.3 million in 2020, compared with €41.6 million in 2019. This revenue can be broken down as follows: €26.7 million in trademark license fees from subsidiaries; ● miscellaneous re-invoicing invoiced to Group companies for ● €3.2 million. Net financial income for Compagnie Plastic Omnium SE was €98.5 million, versus €203.9 million in 2019. This financial income was largely due to: dividends from subsidiaries for €152.2 million in 2020 versus ● €204.9 million in 2019; net interest income on loans, receivables and borrowings of ● €8.6 million in 2020 versus a net income of €1.1 million in 2019; net charge for provisions of €62.8 million in 2020 versus a net charge ● for provisions of €2.6 million in 2019. Non-recurring income of €1.8 million includes in particular €0.7 million in respect of transactions in treasury shares as part of the stock option programs and €0.6 million of residual income on previous transactions. Profit before tax was €100.6 million in 2020, compared to €270.4 million in 2019. Income tax was taxable income of €3.9 million in 2020, compared with €1.4 million in 2019. As a result, the net profit for 2020 was €104.5 million, compared with €271.8 million in 2019. No non-deductible overhead expenses were added back to taxable income during 2020, in application of Articles 223 quater and 223 quinquies of the French General Tax Code.