Plastic Omnium // 2021 Universal Registration Document

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

CAPITAL MANAGEMENT NOTE 6 AND MARKET RISKS

As part of its capital management strategy, the Group compensates its shareholders primarily through the payment of dividends and may make adjustments in line with changes in economic conditions. The capital structure may be adjusted by paying ordinary or special dividends, through share buybacks and cancellation of treasury stock, returning a portion of capital to shareholders or issuing new shares and/or securities giving rights to capital. Gearing The Group uses the gearing ratio, corresponding to the ratio of consolidated net debt to equity, as an indicator of the Group’s leverage. The Group includes in net debt all financial liabilities and commitments, other than operating payables, interest-bearing liabilities, less cash and cash equivalents and other non-operating financial assets, such as marketable securities and loans.

Compagnie Plastic Omnium has set up a global cash management system centralized within its subsidiary Plastic Omnium Finance, which manages liquidity, currency and interest rate risks on behalf of all subsidiaries. The market risk strategy, which may take the form of on- and off-balance sheet commitments, is validated quarterly by the Group’s Senior Executives. 6.1 The Group’s objective is to have, at all times, sufficient financial resources to enable it to carry out its current business, fund the investments required for its development and also to respond to any exceptional events. This goal is achieved through the use of the capital markets, leading to capital and financial debt management. Capital management

At December 31, 2021 and December 31, 2020, the gearing ratio was as follows:

December 31, 2021

December 31, 2020

In thousands of euros

Net financial debt (1)

853,618

806,917

Equity (including non-current grants)

2,058,254

1,950,069

GEARING RATIO

41.47%

41.38%

See Note 5.2.6.7 “Reconciliation of gross and net financial debt”. (1)

5

None of the Group’s bank loans or financial liabilities contains covenants providing for early repayment in the event of non-compliance with financial ratios. As part of its capital management, the liquidity account shows the following positions: at December 31, 2021: ● 139,300 securities (shares), and ● €3,004,264 in cash. ● at December 31, 2020: ● 12,500 securities (shares), and ● €6,241,823 in cash. ●

267

PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021