Plastic Omnium // 2021 Universal Registration Document

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

OTHER INTANGIBLE ASSETS 1.6.2.3 Other intangible assets are measured at cost less accumulated amortization and impairment losses. They are amortized according to the straight-line method over their estimated useful lives. They mainly included the “Ford-Milan,” “Faurecia Exterior Systems business” and “HBPO” customer contracts in 2018.

without transfer of control to customers, for which the Group will receive an integrated compensation in the part price, where appropriate. In this case, the compensation is recorded in revenue over the series’ production term. If fixed assets have been sold or transferred within the Group, any gains and losses are eliminated in the consolidated financial statements. Property, plant and equipment are later recognized at cost less total depreciation based on their lifespan and total impairment. Maintenance and repair costs for fixed assets to restore or maintain the future economic benefits that the company can expect in terms of the estimated level of performance at the time of acquisition are recognized as an expense as incurred. Future expenditures are capitalized only if it is probable that the future economic benefits associated with the expenditure benefit the Group, for example, by an increase in the performance or effectiveness of the asset concerned. The discount rate used to calculate the debt is determined, for each property, according to the marginal debt rate at the start date of the contract. This rate corresponds to the interest rate that the lessee would obtain, at the start of the lease, to finance the acquisition of the leased asset. This rate is obtained by adding the rate on government bonds with terms similar to the leased assets and the entity’s credit spread. The Group has adopted a tool allowing it to carry out, for each lease meeting the IFRS 16 capitalization criteria, an assessment of the rights-of-use and the related financial debt and of all the impacts on the income statement and balance sheet in accordance with IFRS 16. This tool is used by all consolidated companies. The amounts recognized as right-of-use assets and as financial debt mainly relate to property leases of industrial sites, storage and administrative premises; the remainder mainly corresponds to industrial equipment and vehicles. 1.6.4.1 Plastic Omnium Group goodwill is not amortized but is tested for impairment at least annually, at year-end, as well as during the current year when there is evidence of impairment. Impairment tests are carried out at the level of the cash-generating units (CGU) or groups of cash-generating units, which are: “Industries” ● “Modules” ● The net carrying amount of all assets (including goodwill), comprising each cash-generating unit, is compared to its recoverable amount, i.e. the higher of the fair value less disposal costs and the value in use determined using the discounted cash-flow method. Impairment of goodwill, property, plant and equipment and intangible assets IMPAIRMENT OF GOODWILL 1.6.4 20 and 40 years 10 years 7 - 10 years 3 - 10 years

1.6.3

Property, plant and equipment

1.6.3.1 Gross values

ASSETS OWNED OUTRIGHT

Property, plant and equipment are initially recorded at their acquisition cost, at their cost of production when they are manufactured by the company for its own use (or subcontracted) or at their fair value for those acquired without consideration. Property, plant and equipment may be specific tooling developed by the Group in connection with production contracts signed with customers

Buildings

Real estate fixtures

Presses and transformation machines

Machining, finishing and other equipment

The Group applies the components approach to its real estate assets and major functional assemblies. LEASE CONTRACTS 1.6.3.2 Since January 1, 2019, the Group has applied IFRS 16 “Leases” and has chosen to apply for the transition the simplified retrospective method providing for the application of the new accounting treatment to leases in force on January 1, 2019. As part of the implementation of this standard, the Group assesses whether a contract is a lease under IFRS 16 by assessing on the entry date of said contract, whether the latter relates to a specific asset, and whether the Group obtains almost all of the economic benefits linked to the use of the asset and the ability to control the use of this asset. The two capitalization exemptions proposed by the standard for contracts with an initial term of less than or equal to twelve months and goods of low unit value when new, which the Group has defined as being less than recognition as property, plant and equipment of rights to use assets ● under leases that meet the capitalization criteria defined by IFRS 16; recognition of a financial debt in respect of the obligation to pay rent ● during the term of these contracts; recognition of a depreciation charge for the right-of-use of the asset ● and a financial charge relating to interest on the lease debt, which partially replace the operating charge previously recorded in respect of the rent. The amortization period for the right-of-use is determined on the basis of the duration of the contract, taking into account an option of renewal or termination when its exercise is reasonably certain; in the cash-flow statement, debt repayments affect financing flows. ● or equal to €5,000, have been used. The accounting treatment is as follows:

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021