Plastic Omnium // 2021 Universal Registration Document

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CONSOLIDATED FINANCIAL STATEMENTS 2021 Consolidated financial statements at December 31, 2021

Recognition of transactions in foreign currencies 1.3.5 Transactions in foreign currencies are initially recorded in the functional currency at the rate on the transaction date. On the closing date, monetary assets and liabilities are revalued at the rates prevailing at the closing date. Non-monetary assets and liabilities are valued at the historical cost prevailing at the transaction date (for example: goodwill, property, plant and equipment, inventories). Non-monetary assets and liabilities measured at fair value are valued at the rates prevailing at the date when fair value is determined. For monetary items, exchange rate differences arising from changes in foreign exchange rates are recorded in the income statement as other operating income and expenses when they relate to operations and as net financial income (expense) when they relate to financial transactions. RAW MATERIAL INVENTORIES AND OTHER SUPPLIES 1.3.6.1 Raw material inventories and other supplies are measured at the lower of cost and net realizable value. At the end of the fiscal year, a provision for impairment of these inventories is recorded when the estimated sales price of the finished products for which they are earmarked in the normal course of business, less the residual estimated selling, production and processing costs, is less than their carrying amount. FINISHED AND SEMI-FINISHED PRODUCT INVENTORIES 1.3.6.2 Finished and semi-finished products are valued on the basis of standard production costs, revised annually. Cost includes raw materials and direct and indirect production costs. These costs do not include any administrative overheads or IT not linked to production, Research and Development expenses or selling costs. In addition, they do not include the cost of below-normal capacity utilization. PROJECT INVENTORIES – TOOLS AND DEVELOPMENT 1.3.6.3 These inventories correspond to costs incurred by the Group in order to satisfy a performance obligation in connection with automotive projects. The cost of inventories is compared at the balance sheet date to the net realizable value. If it exceeds the net realizable value, an impairment loss is recorded to bring the inventories to their net realizable value. 1.3.7 Receivables are recorded at their fair value at the time they are recorded. The fair value generally corresponds to the nominal value of the receivable as long as the sale has been carried out with normal payment terms. Impairment losses are booked to cover expected credit losses and identified risks of non-recovery. The amount of impairment is calculated on a statistical basis for credit risk and counterparty by counterparty, on an individual basis for non-recovery risk. Finance receivables mainly correspond to development and tooling sales for which the Group has signed an agreement enabling customers to pay in installments (for example: “development unit” prices contractually agreed by customers). These receivables have initial payment periods of more than one year and may bear interest in the framework of an asset financing agreement signed with the customer. The income related to these receivables is recognized in revenue. These finance receivables are deducted when calculating the Group’s net debt. Receivables Inventories and work in progress 1.3.6

Receivables sold to third parties, which are removed from the balance sheet, meet the following criteria: the rights attached to receivables are transferred to third parties; ● substantially all the risks and rewards of ownership are transferred to ● third parties. The risks taken into account are the following: credit risk, ● risks related to payment arrears both for the duration and amounts, ● the transfer of interest rate risk, which is fully assumed by the buyer. ● 1.3.8 The grants received are recognized as liabilities in the balance sheet; they correspond to grants to finance investments in new sites, production equipment or Research and Development programs. Grants are recognized in profit or loss at the gross profit level, as and when the assets acquired through these grants are depreciated or the associated research expenses are recognized. Grants Share-based payment 1.4.1 Stock option and share purchase plans granted to employees are measured at their fair value at the date of grant by the Board of Directors, using the Black & Scholes mathematical model. The fair value is recognized in “Personnel costs” on a straight-line basis over the vesting period, with a corresponding adjustment to reserves. When options are exercised, the cash amount received by the Group in respect of the exercise price is recorded in cash and cash equivalents with a corresponding adjustment to consolidated reserves. post-employment benefits) All Group employees are covered by pensions and other long-term post-employee benefits. Pension plans comprise defined-contribution plans or defined-benefit plans. In June 2021, the IASB approved the position presented by the IFRIC on the method for attributing benefits to periods of service as part of the measurement of employee benefits (IAS 19). The plans concerned are defined-benefit plans, satisfying all of the following conditions: the attribution of benefits, paid in the form of a single benefit at the ● time of retirement, is subject to the employee’s presence in the company at the time of retirement; benefits depend on the length of service in the company at the time of ● retirement and are capped after a certain number of years of service. End-of-Career Benefits provided by French companies are affected by this change in method. Provisions for pensions and similar (other 1.4.2 Staff costs and employee benefits 1.4

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021