Plastic Omnium // 2021 Universal Registration Document

2021 STATUTORY FINANCIAL STATEMENTS Notes to the statutory financial statements

Equity investments and related receivables The equity investments are composed of investments that enable control of the issuing company or notable influence to be exercised over it. They are intended to be retained over the long term and to contribute to the business of the holding company. Gross values of investments in subsidiaries and affiliates are initially recognized at cost or transfer value. If applicable, a provision for impairment will be booked when the value in use or the probable realization value is lower than the net carrying amount. Value in use is determined according to a multi-criteria approach, based on management’s judgment, taking into account the share of net equity and an enterprise value approach based on discounting future cash-flows in view of the current market conditions and the medium-term plans of the subsidiaries. Related receivables are valued at their par value. Depreciation is recorded where the inventory value is less than the carrying amount. Related receivables are impaired through a provision by taking into account the overall situation and the likelihood of non-recovery. Other long-term investments The other long-term investments are securities that the Company intends to hold for the long term without involvement in the management of the companies in which the securities are held. The gross value of the other long-term investments corresponds to the acquisition cost. If applicable, a provision for impairment will be booked when the value in use or the probable realization value is lower than the net carrying amount. Treasury stock The Company has been authorized by Ordinary General Meetings to purchase its own shares to maintain a liquid market for its shares under a liquidity contract with an investment firm, reduce the share capital by canceling shares, or cover current or future stock option or stock grant plans for employees and corporate officers of the Group. The accounting classification of treasury shares depends on its final purpose: treasury shares intended for cancelation and allocated to a future ● capital reduction or acquired as part of a liquidity contract are recognized as long-term investment; treasury shares bought back to be granted to employees and corporate ● officers as part of a stock-option plan or performance share plan are recognized as short-term investment securities. Treasury shares are measured in line with their accounting classification (investments, stock option plans or performance share plans, shares acquired under the liquidity contract) using a FIFO (first-in, first-out) method. The gross value equals the acquisition price, and treasury shares are valued at the average market price of the latest month. Impairment is recognized where the gross value is higher than the carrying amount, except for treasury shares intended for cancelation. For shares allocated to cover stock option plans, their fair value is the lower of the exercise

price of the options granted. For treasury shares allocated to the grant of performance shares, a provision for expenses is recognized for the total value of the treasury shares allocated to the employees and corporate officers of Compagnie Plastic Omnium and its subsidiaries. For shares otherwise classified, market value is determined on the basis of the average quoted stock market price during the month before the balance sheet date. Receivables Receivables are valued at their nominal value. Depreciation is recorded where the inventory value is less than the carrying amount. Receivables are depreciated through provisions that take into account possible recovery problems. Short-term investment securities The short-term investment securities are valued by securities category (shares held as part of the liquidity agreement, unallocated treasury shares, other short-term investment securities), using a FIFO (first-in, first-out) method. When necessary, they are impaired, calculated for each line of similar securities. For securities that represent listed securities, the impairment is booked to bring their net carrying amount to the closing price. Cash and cash equivalents These include cash, and other items with a similar nature to cash, on hand and at the bank, as well as warrants that may be redeemed at any time after they have been subscribed. Cash and cash equivalents are valued at their nominal value. Foreign currency transactions At closing, monetary items in foreign currencies are converted on the balance sheet at the exchange rates in effect at the closing date as an offset to items in “Translation differences – Assets/Liabilities” on the balance sheet, except for hedges, in which case revaluations are carried in net financial income and are offset by the impacts recognized on the hedging instrument. Unrealized foreign exchange gains are not recognized in accounting income. A provision for foreign exchange losses is recognized for the total amount of unrealized losses, except for the following situations: in the case of a hedge, the provision is recognized only for the amount ● of unhedged exposure; when unrealized gains or losses on foreign exchange relate to ● transactions in a single currency maturing in the same accounting period, the provision is limited to the excess of the losses over the gains, based on the overall foreign exchange position. Bank accounts in foreign currencies are valued on the balance sheet at the exchange rate in effect at the closing date as an offset to foreign exchange gain or losses.

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021