Interim / Quarterly Report • Jul 21, 2021
Interim / Quarterly Report
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REVOLUTIONS POWERED BY PLASTIC OMNIUM
2021 INTERIM FINANCIAL REPORT
| PAGE | |
|---|---|
| DECLARATION BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT |
2 |
| INTERIM BUSINESS REPORT | 3 - 13 |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS | 14 – 60 |
| STATUTORY AUDITORS' REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION |
61 - 63 |
I declare that, to the best of my knowledge, the condensed interim consolidated financial statements of Compagnie Plastic Omnium SE for the half-year period have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, financial position and results of both the Company and all consolidated companies, and that the interim business report herewith presents a true picture of major events occurring during the first six months of the accounting period, of their impact on financial statements and of the major transactions between related parties, and that it describes the main risks and uncertainties for the remaining six months of the year.
Levallois, July 20, 2021
Laurent Favre Chief Executive Officer
Increase in Burelle SA's control as the majority shareholder of Compagnie Plastic Omnium SE The Burelle SA holding company's stake in Compagnie Plastic Omnium SE rose from 58.8% to 59.4% following the cancellation of 1,443,954 treasury shares, equal to 0.97% of the share capital, on February 25th, 2021.
The terms of office of two directors – Jean Burelle and Jérôme Gallot – were not renewed, and so they ceased to be directors at the end of the shareholders' general meeting of April 22nd, 2021. Jean Burelle was appointed non-voting director (censeur) of Compagnie Plastic Omnium SE through a decision by the Board of Directors on February 17th, 2021.
The following people joined the Group in the first half of 2021:
And in newly created roles:
The Group's Executive Committee now has 14 members including 6 women, and has greater international experience.
In the first half of 2021, Plastic Omnium saw increased orders relating to electric vehicles from longstanding clients across all geographical zones:
Plastic Omnium also broadened its client base, adding three new carmakers to its 93-brand portfolio:
As a result of these successes, electric vehicles represent 5% of Group revenues in 2020 and 17% in 2025, a larger share than BEV in total automotive production (2% in 2020 and 15% in 2025).
Plastic Omnium is also continuing to improve its technological offering in this segment by developing specific modules such as an electric charging module and a trunk module. These innovations will allow the Group to increase the amount of content sold per vehicle.
On March 1st, 2021, Plastic Omnium and ElringKlinger launched their EKPO Fuel Cell Technologies joint venture, a leading player in fuel cells for a wide range of applications including commercial vehicles, buses, passenger cars, trains and boats. Plastic Omnium has also acquired ElringKlinger Fuelcell Systems Austria GmbH (EKAT), which is ElringKlinger's Austrian subsidiary specializing in integrated hydrogen systems.
Plastic Omnium has a comprehensive offering including hydrogen storage, fuel cells and integrated hydrogen systems. Combined with its available industrial capacity, this means that it can respond to the increasing number of invitations to tender in the hydrogen mobility segment, as well as confirming its ambition of generating €3 billion of revenues in 2030.
The Group deployed that strategy in the first half of 2021, winning a large number of orders in various segments.
Plastic Omnium entered into a partnership with Hopium, the French manufacturer of high-end hydrogen cars, to develop the hydrogen storage system for the future Hopium Māchina. This high-end car, first announced in October 2020, is intended to be the first French hydrogen-powered sedan to hit the market in 2026. The Māchina prototype will be equipped with a 700-bar Type IV vessel made by Plastic Omnium in its Herentals plant (Belgium), which has been operational since fall 2020.
Building on this initial collaboration, Hopium and Plastic Omnium have established a partnership to develop the hydrogen storage system for the Hopium Māchina production model. Based on almost 40 patents and a range of certified hydrogen storage vessels developed in-house, Plastic Omnium will produce a prototype high-pressure Type IV hydrogen vessel that will then be provided to Hopium for testing. This new-generation vessel will be optimally integrated into the vehicle chassis, enabling Hopium to maximize the quantity of hydrogen stored and achieve its ambitious 1,000-kilometer target range.
In fuel-cell systems:
Elektro-Fahrzeuge Stuttgart GmbH (EFA-S) selected Plastic Omnium to deliver fuel-cell systems to equip the GAZelle with an electronic powertrain. This emissions-free truck will first be used by the city of Esslingen (Germany) for road maintenance. The ambition of EFA-S is to establish a fleet of more than 100 hydrogen-powered vehicles by 2023.
By the EKPO fuel-cell joint venture:
The Group has also formed a strategic partnership with McPhy, which specializes in hydrogen production and distribution equipment, with the aim of collaborating on filling protocols and interfaces between hydrogen stations and high-pressure vessels, thereby helping broaden the Group's expertise across the entire hydrogen value chain.
More specifically, the technological collaboration will aim to improve the performance and connectivity of high-pressure vessels, by analyzing and mining the data generated by the interface at the filling station.
Plastic Omnium and McPhy are also looking at developing joint commercial products and solutions starting from the needs analysis phase, for Plastic Omnium's long-standing customers as well as new hydrogen mobility players.
Intensive marketing activity is taking place, targeting both carmakers and other mobility players (producers of buses, trucks and trains).
Plastic Omnium has continued to prepare its carbon-neutrality roadmap, details of which will be provided in the second half of 2021. In the first half of the year, the Group has signed agreements with two external partners specializing in energy transition, and together with them has already committed to:
Plastic Omnium has already engaged with the Science-Based Target Initiative in order to align its CO2 reduction targets with the most ambitious "Business Ambition for 1.5°C" methodology. The Group is also preparing scenarios for possible changes to its business activities in a carbon-constrained world, and supports the recommendations of the TCFD (Task-Force on Climate-Related Financial Disclosures), which aims to build a more resilient industrial and financial system.
Without waiting to announce its roadmap, Plastic Omnium is already stepping up efforts to decarbonize its sites, and in particular is aiming to use 100% renewable electricity8 at its sites (as opposed to 32% currently). In addition to the four sites equipped with solar panels in 2020, agreements to equip a further 17 sites with solar panels or wind turbines have been formed since the start of 2021. Finally, the Group is working on using a greater proportion of recycled materials in its products, in close collaboration with its clients.
These 2021 half-year results represent a major improvement on those for the first half of 2020, which were very significantly affected by plant shutdowns arising from the Covid-19 crisis. They reflect operational performance that is already back to 2019 levels, even though worldwide automotive production is still lower than it was before the crisis (down 10% compared with 2019).
Free cash-flow also accelerated.
| In € millions | H1 2020 | H1 2021 |
|---|---|---|
| Economic revenues 1 |
3,233 | 4,138 |
| Consolidated revenues 2 |
2,962 | 3,784 |
| Operating margin3 % of consolidated revenues |
-116 -3.9% |
234 6.2% |
| Net result - Group share | -404 | 142 |
| EBITDA4 % of consolidated revenues |
171 5.8% |
461 12.2% |
| Investments | 226 | 149 |
| Free cash-flow5 | -572 | 151 |
| Net debt6 at June 30 Net debt / Equity Net debt / EBITDA |
1,410 78% 2.1 |
890 44% 0.9 |
In the first half of 2020, worldwide automotive production volumes amounted to 29.3 million vehicles, representing a historic decline of 33% as a result of the Covid-19 pandemic and plant shutdowns. In the first half of 2021, production rebounded to 37.9 million vehicles. This was still around 10% lower than 2019 figures, due in particular to chip shortages, the impact of which increased during the half-year period, dragging down production by 1.4 million vehicles in the first quarter of 2021 and 2.6 million in the second.
Plastic Omnium generated economic revenues of €4,138 million in the first half of 2021, up 31.9% compared with the first half of 2020 on a like-for-like basis. An estimated €550 million of revenues were lost as a result of production stoppages at carmakers arising from the shortage of electronic components.
Both of the Group's two businesses contributed to the sharp upturn, with revenues up 29.2% at constant scope and exchange rates at Plastic Omnium Industries and up 39.5% at Plastic Omnium Modules.
Plastic Omnium's consolidated revenues, excluding joint ventures, amounted to €3,784 million in the first half of 2021, up 31.8% at constant exchange rates compared with the first half of 2020.
| In € millions by business | H1 2020 | H1 2021 | Change | LFL change* |
|---|---|---|---|---|
| Plastic Omnium Industries | 2,395 | 2,992 | +24.9% | +29.2% |
| Plastic Omnium Modules | 838 | 1,146 | +36.7% | +39.5% |
| Economic revenues | 3,233 | 4,138 | +28.0% | +31.9% |
| Joint ventures | 271 | 354 | +30.4% | +32.9% |
| Plastic Omnium Industries | 2,203 | 2,739 | +24.3% | +28.7% |
| Plastic Omnium Modules | 759 | 9 1,045 |
+37.7% | +40.7% |
| Consolidated revenues | 2,962 | 3,784 | +27.8% | +31.8% |
*Like-for-like: at constant scope and exchange rates
With economic revenues up 31.9% at constant exchange rates, the Group outperformed worldwide automotive production (up 29.4%) by 2.5 points in the first half of 2021.
| In € millions by region | H1 2020 | H1 2021 | LFL change* |
Change in automotive production |
|---|---|---|---|---|
| Europe | 1,770 | 2,277 | +28.9% | +27.8% |
| North America | 860 | 1,030 | +31.1% | +31.4% |
| China | 326 | 434 | +33.8% | +26.6% |
| Asia excluding China | 215 | 283 | +36.7% | +29.5% |
| Other | 62 | 116 | +96.8% | +46.8% |
| Economic revenues | 3,233 | 4,138 | +31.9% | +29.4% |
| Joint ventures | 271 | 354 | +32.9% | |
| Consolidated revenues | 2,962 | 3,784 | +31.8% | +29.4% |
*Like-for-like: at constant scope and exchange rates
In Europe, Plastic Omnium's revenues amounted to €2,277 million in the first half of 2021. Revenues in the region rose by 28.9% against a 27.8% increase in automotive production, representing an outperformance of 1.1 points. Germany – the largest contributor to Group revenues, accounting for 16% of the total – outperformed by 17 points, with growth of 32% driven by the Group's positions in new electric vehicles. In Spain, France and the UK, business levels at the Group's main clients were affected by chip shortages.
In North America, Plastic Omnium's revenues totalled €1,030 million in the first half of 2021. That represented an increase of 31.1% at constant scope and exchange rates, in line with the rise in automotive production (+31.4%)
In Asia excluding China, revenues came to €283 million in the first half of 2021, up 36.7% at constant exchange rates. Relative to market growth of 29.5%, this represented an outperformance of 7.2 points. Business benefited from a strong recovery in South Korea, India and Thailand.
In China, which accounts for 10% of Group economic revenues, Plastic Omnium posted revenues of €434 million. Revenues were up 33.8% at constant exchange rates in the first half of the year, representing an outperformance of 7.2 points. This was due to market share gains and growth in the modules business, which was launched in 2018.
Since the start of 2021, Plastic Omnium has been managing its operations on the basis of a 5% discount to expected worldwide automotive production volumes. Flexibility measures were stepped up in the first half to absorb the consequences of production line stoppages and the reduction in production volumes by many carmakers as a result of supply shortages affecting chips, and increases in raw materials.
The Group also continued to deploy its OMEGA transformation plan, with the aim of improving organizational effectiveness; leveraging industrial efficiency by simplifying processes, accelerating digitization, and facilitating a more cross-functional approach. 2,500 initiatives were formally adopted, allowing the Group to confirm its cost-reduction target of €100 million for 2021.
Finally, the return to operational breakeven at Greer's US site and the closure of the Eisenach fuel systems manufacturing site in Germany in the first quarter of 2021, helped drive the sharp upturn in operational performance.
As a result, the Group's operating income comes to €234 million in the first half of 2021, 6.2% of revenues.
| In € millions and as a % of revenues by business |
H1 2020 | H2 2020 | H1 2021 |
|---|---|---|---|
| Consolidated revenues | 2,962 | 4,111 | 3,784 |
| Plastic Omnium Industries | 2,203 | 2,940 | 2,739 |
| Plastic Omnium Modules | 759 | 1,171 | 1,045 |
| Operating margin % of consolidated revenues |
-116 -3.9% |
234 5.7% |
234 6.2% |
| Plastic Omnium Industries % of consolidated revenues |
-106 -4.8% |
205 7.0% |
209 7.6% |
| Plastic Omnium Modules % of consolidated revenues |
-11 -1.4% |
29 2.5% |
25 2.4% |
Plastic Omnium Industries achieved an operating margin of 7.6%.
Other operating expenses in the first half of 2021 amounted to €21 million as opposed to €313 million in June 2020 which included €255 million of asset impairment related to the volume impact of the Covid-19 pandemic and the adoption of a scenario projecting a slow recovery in worldwide automotive production.
Net financial expenses fell by €9.7 million to €26 million thanks to the combined effect of lower debt levels and lower interest rates, equalling 0.7% of revenues.
Tax expenses were €38.3 million resulting in an effective tax rate of 22.4%. In the first half of 2020, the Group recorded tax income of €47 million owing to deferred tax effects.
Net income – Group share totalled €142 million, representing 3.8% of consolidated revenues.
Free cash-flow of €151 million, equal to 4.0% of revenues and stronger financial position with Net debt/EBITDA ratio of 0.9x
EBITDA amounted to €461 million in the first half of 2021, representing 12.2% of consolidated revenues (and 14.9% of revenues at Plastic Omnium Industries) versus €171 million and 5.8% of consolidated revenues in the first half of 2020.
In the first half of 2021, investments totalled €149 million, or 3.9% of revenues, as opposed to €226 million in the first half of 2020 and €148 million in the second. In 2021 as a whole, capex is likely to equal around 5% of revenues.
Sales of receivables fell by €20 million and a €100 million increase in inventories was largely due to efforts to secure supplies against a background of supply-chain pressures. As a result, the working capital requirement rose by €108 million.
In the first half of 2021, the Group generated €151 million of free cash-flow, equal to 4.0% of consolidated revenues.
Net debt stood at €890 million at June 30, 2021 (versus €1.410 million at June 30, 2020 and €807 million at December 31, 2020) and included €115 million associated with the set-up of the EKPO JV and the acquisition of EKAT and a dividend payment of € 71 million.
Net debt equates to 44% of shareholders' equity and 0.9x EBITDA.
At June 30, 2021, the Group had liquidities of €2.45 billion comprising €0.57 billion in available cash and €1.88 billion in confirmed, undrawn credit lines, with an average maturity of 3.6 years and without any covenants.
Plastic Omnium is continuing to plan its operations on the basis of worldwide automotive production of 77 million cars in full-year 2021, with production volumes in the second half similar to those in the first and still affected by shortages of electronic components and pressure on the availability and prices of raw materials.
Based on that assumption and as a result of its flexibility and cost-reduction plans, the Group is raising its guidance for 2021:
Related party transactions correspond to transactions with Sofiparc, Burelle SA and Burelle Participations. Contracts between the Group and these companies were unchanged compared to 2020.
The compensation of senior managers and corporate officers were unchanged compared to December 31st, 2020.
Corporate officer compensation during the first half of 2021 was paid in accordance with the decision by the Board of Directors of Compagnie Plastic Omnium SE on February 17th, 2021, as set out on p.111 and following of Compagnie Plastic Omnium SE's 2020 Universal Registration Document.
The Board of Directors decided that the Chief Executive Officer's fixed compensation for 2021 would remain unchanged relative to 2020, amounting to €900,000 for the full year.
The Chief Executive Officer also receives standard benefits in kind (company car, annual medical checkup, sports club membership, life insurance plan in accordance with Group policy). Mr. Laurent Favre also benefits from tax assistance, assistance with relocation and moving expenses up to a maximum of €40,000, as well as payment of the rent for his main residence if rent is paid on two properties at the same time, for a maximum period of eight months.
Félicie Burelle's annual gross fixed compensation remains unchanged at €500,000. Mrs. Burelle also receives standard benefits in kind (company car, annual medical check-up, sports club membership, life insurance plan in accordance with Group policy).
With regard to variable compensation, the Board of Directors of Compagnie Plastic Omnium SE, acting on the recommendation of the Compensation Committee and the Appointments Committee, decided on the following items:
Annual variable compensation is determined as a percentage of fixed compensation. 60% of it is determined on the basis of quantifiable criteria designed to reward economic performance and 40% of it is based on qualitative criteria. The qualitative criteria include the achievement of several targets regarding workforce-related, social and environmental responsibility, which together account for 20% and include the carbon-neutral strategy, the diversity policy, safety at work and the strengthening of the compliance policy. Quantifiable criteria are based on free cash flow (20%), net income attributable to equity holders of the parent (20%) and operating margin (20%). The quantifiable targets for 2021 have been defined in relation to the Group's forecast budget as presented to the Board of Directors on December 11th, 2020.
The incentive component takes the form of performance shares subject to quantifiable performance conditions. It aims to incentivize the executive corporate officer to focus on the long term, to retain his services and to ensure that his interests are aligned with the Group's corporate interests and the interests of its shareholders. Accordingly, the vesting of these shares is subject to performance conditions, fulfillment of which is measured at the end of a vesting period of four years from the grant date. The value of those shares, estimated on the grant date in accordance with IFRSs used to prepare the consolidated financial statements, represents approximately 35% of the executive corporate officer's total compensation, without exceeding 100%.
Annual variable compensation is determined as a percentage of fixed compensation. 60% of it is determined on the basis of quantifiable criteria designed to reward economic performance and 40% of it is based on qualitative criteria. The qualitative criteria include the achievement of several targets regarding workforce-related, social and environmental responsibility, which together account for 20% and include the carbon-neutral strategy, the diversity policy, safety at work and the strengthening of the compliance policy. Quantifiable criteria are based on free cash flow (20%), net income attributable to equity holders of the parent (20%) and operating margin (20%). The quantifiable targets for 2021 have been defined in relation to the Group's forecast budget as presented to the Board of Directors on December 11, 2020.
The incentive component takes the form of performance shares subject to quantifiable performance conditions. It aims to incentivize the executive corporate officer to focus on the long term, to retain his services and to ensure that his interests are aligned with the Group's corporate interests and the interests of its shareholders. Accordingly, the vesting of these shares is subject to performance conditions, fulfillment of which is measured at the end of a vesting period of four years from the grant date. The value of those shares, estimated on the grant date in accordance with IFRSs used to prepare the consolidated financial statements, represents approximately 35% of the executive corporate officer's total compensation, without exceeding 100%.
The main risk factors for Compagnie Plastic Omnium SE remain those identified in the 2020 Universal Registration Document.
All references to worldwide automotive production come from IHS data in July 2021.
AT JUNE 31, 2020
In the context of its financial communication, the Group uses financial indicators based on aggregates taken from the consolidated financial statements prepared in accordance with IFRS, as adopted in the European Union.
As indicated in Note 3.1 of the consolidated financial statements at June 30, 2021, on segment information, the Group uses the notion of "economic revenue" for its operational management, which corresponds to the consolidated revenue of the Group and its joint ventures at their percentage stake: Yanfeng Plastic Omnium, the Chinese leader in exterior body parts, SHB Automotive modules, the leading Korean front-end module company and BPO, a major player in the Turkish exterior equipment market.
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Economic revenue | 4,138,238 | 3,233,086 |
| Including revenue from joint ventures at the Group's percentage stake | 353,912 | 271,351 |
| Consolidated revenue | 3,784,326 | 2,961,735 |
| In thousands of euros | |||
|---|---|---|---|
| Notes | June 30, 2021 | December 31, 2020 | |
| ASSETS | |||
| Goodwill | 5.1.1 | 1,023,129 | 1,014,369 |
| Other intangible assets | 5.1.2 | 547,955 | 560,847 |
| Property, plant and equipment | 5.1.3 | 1,643,143 | 1,676,189 |
| Investment property | 30 | 30 | |
| Equity method and non-consolidated investments | 5.1.4 | 271,945 | 180,342 |
| Other non-current financial assets(1) | 5.1.5 | 69,230 | 18,062 |
| Deferred tax assets | 156,997 | 128,471 | |
| TOTAL NON-CURRENT ASSETS | 3,712,429 | 3,578,310 | |
| Inventories | 5.1.6 | 758,243 | 656,812 |
| Finance receivables(1) | 5.1.7 | 4,435 | 6,340 |
| Trade receivables | 5.1.8 | 816,184 | 814,400 |
| Other receivables | 5.1.8 | 322,420 | 318,307 |
| Other financial assets and financial receivables(1) | 5.1.7 | 320 | 301 |
| Hedging instruments(1) | 5.2.6 | 1,201 | 7,625 |
| Cash and cash equivalents(1) | 5.1.9 | 635,834 | 829,989 |
| TOTAL CURRENT ASSETS | 2,538,637 | 2,633,774 | |
| TOTAL ASSETS | 6,251,066 | 6,212,084 | |
| EQUITY AND LIABILITIES | |||
| Capital | 5.2.1.1 | 8,827 | 8,914 |
| Treasury stock | -38,226 | -61,339 | |
| Additional paid-in capital | 17,389 | 17,389 | |
| Consolidated reserves | 1,833,884 | 2,156,759 | |
| Net income for the period | 142,241 | -251,112 | |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT | 1,964,115 | 1,870,611 | |
| Attributable to non-controlling interests | 67,502 | 69,677 | |
| TOTAL EQUITY | 2,031,617 | 1,940,288 | |
| Non-current borrowings(1) | 5.2.5.6 | 1,312,428 | 1,307,681 |
| Provisions for pensions and other post-employment benefits | 84,437 | 100,331 | |
| Provisions for liabilities and charges | 5.2.4 | 36,992 | 30,926 |
| Non-current grants | 9,451 | 9,781 | |
| Deferred tax liabilities | 69,204 | 43,477 | |
| TOTAL NON-CURRENT LIABILITIES | 1,512,512 | 1,492,196 | |
| Bank overdrafts(1) | 5.1.9.2 | 8,859 | 12,277 |
| Current borrowings and financial debt(1) | 5.2.5.6 | 275,229 | 349,160 |
| Hedging instruments(1) | 5.2.6 | 4,032 | 116 |
| Provisions for liabilities and charges | 5.2.4 | 73,366 | 87,888 |
| Current grants | 450 | - | |
| Trade payables | 5.2.7.1 | 1,287,011 | 1,371,750 |
| Other operating liabilities | 5.2.7.2 | 1,057,990 | 958,409 |
| TOTAL CURRENT LIABILITIES | 2,706,937 | 2,779,600 | |
| TOTAL EQUITY AND LIABILITIES | 6,251,066 | 6,212,084 |
(1) Components of net financial debt. Net financial debt stands at €889.5 million at June 30, 2021 compared with €806.9 million at December 31, 2020 (see Note 5.2.5.6).
| In thousands of euros | Notes | First-half 2021 |
% | First-half 2020 |
% |
|---|---|---|---|---|---|
| Consolidated sales (revenue) | 3,784,326 | 100.0% | 2,961,735 | 100.0% | |
| Cost of goods and services sold | 4.2 | -3,292,226 | -87.0% | -2,797,094 | -94.4% |
| Gross profit | 492,100 | 13.0% | 164,641 | 5.6% | |
| Research and Development costs | 4.1 - 4.2 | - 126,599 | -3.3% | - 141,952 | -4.8% |
| Selling costs | 4.2 | - 20,486 | -0.5% | - 16,905 | -0.6% |
| Administrative expenses | 4.2 | - 117,670 | -3.1% | - 117,857 | -4.0% |
| Operating margin before amortization of intangible assets acquired in business combinations and before share of profit of associates and joint ventures |
227,345 | 6.0% | - 112 073 | -3.8% | |
| Amortization of intangible assets acquired in business combinations | 4.3 | - 10,095 | -0.3% | - 13,366 | -0.5% |
| Share of profit/loss of associates and joint ventures | 4.4 | 16,775 | 0.4% | 9,272 | 0.3% |
| Operating margin | 234,025 | 6.2% | - 116 168 | -3.9% | |
| Other operating income | 4.5 | 4,615 | 0.1% | 4,493 | 0.2% |
| Other operating expenses | 4.5 | - 25,304 | -0.7% | - 317,826 | -10.7% |
| Borrowing costs | 4.6 | - 24,672 | -0.7% | - 32,775 | -1.1% |
| Other financial income and expenses | 4.6 | - 954 | -0.0% | - 2,509 | -0.1% |
| Profit from continuing operations before income tax and after share of profits of associates and joint ventures |
187,710 | 5.0% | - 464,785 | -15.7% | |
| Income tax | 4.7 | - 38,289 | -1.0% | 46,931 | 1.6% |
| Net income | 149,421 | 3.9% | - 417,855 | -14.1% | |
| Net profit attributable to non-controlling interests | 4.8 | 7,180 | 0.2% | - 14,343 | -0.5% |
| Net profit attributable to owners of the parent company | 142,241 | 3.8% | - 403,512 | -13.6% | |
| Earnings per share attributable to owners of the parent company Basic earnings per share (in euros)(1) Diluted earnings per share (in euros)(2) |
4.9 | 0.98 0.98 |
-2.77 -2.77 |
||
(1) Basic earnings per share are calculated using the weighted average number of ordinary shares outstanding, less the average number of shares held in treasury stock.
(2) Diluted earnings per share take into consideration the average number of treasury shares deducted from equity and shares related to the exercise of stock option plans.
| In thousands of euros | First-half 2021 | First-half 2020 | ||||
|---|---|---|---|---|---|---|
| Total | Gross | Tax | Total | Gross | Tax | |
| Net profit for the period attributable to owners of the parent (1) | 142,241 | 177,244 | - 35,003 | - 403,512 | - 447,385 | 43,873 |
| Reclassified to the income statement | 15,995 | 16,905 | -910 | -21,057 | -20,333 | -724 |
| Reclassified in the period | 98 | 132 | -34 | 130 | 130 | - |
| Cash flow hedges | 98 | 132 | -34 | 130 | 130 | - |
| Reclassified at a later date | 15,897 | 16,773 | -876 | -21,187 | -20,463 | -724 |
| Exchange differences on translating foreign operations | 15,733 | 15,733 | - | -23,268 | -23,268 | - |
| Cash flow hedges | 164 | 1,040 | -876 | 2,081 | 2,805 | -724 |
| Gains/(losses) for the period – Exchange rate instruments | 164 | 1,040 | -876 | 2,081 | 2,805 | -724 |
| Cannot be reclassified to the income statement at a later date | 15,464 | 19,286 | -3,822 | -5,886 | -8,237 | 2,351 |
| Actuarial gains/(losses) relating to defined benefit plans | 11,574 | 15,396 | -3,822 | -8,148 | -10,499 | 2,351 |
| Revaluation of long-term investments in equity instruments | 2,983 | 2,983 | - | -752 | -752 | - |
| and funds Revaluation of assets and liabilities due to hyperinflation in Argentina |
907 | 907 | - | 3,015 | 3,015 | - |
| Total gains and losses recognized directly in equity - Group share | 31,459 | 36,191 | -4,732 | -26,943 | -28,570 | 1,627 |
| Net income and gains and losses recognized directly in equity - Group share(2) | 173,700 | 213,435 | -39,735 | -430,455 | -475,955 | 45,500 |
| Net profit for the period attributable to non-controlling interests | 7,180 | 10,466 | -3,286 | -14,343 | -17,401 | 3,058 |
| Reclassified to the income statement | 1,466 | 1,466 | - | -3,696 | -3,696 | - |
| Reclassified at a later date | 1,466 | 1,466 | - | -3,696 | -3,696 | - |
| Exchange differences on translating foreign operations | 1,466 | 1,466 | - | -3,696 | -3,696 | - |
| Total gains and losses recognized directly in equity - Non-controlling interests | 1,466 | 1,466 | - | -3,696 | -3,696 | - |
| Net income and gains and losses recognized directly in equity - Non-controlling | 8,646 | 11,932 | -3,286 | -18,039 | -21,097 | 3,058 |
| interests | ||||||
| Net income and gains and losses recognized directly in equity | 182,346 | 225,367 | -43,021 | -448,494 | -497,052 | 48,558 |
(1) Net profit for the period attributable to owners of the parent amounted to €85,401 thousand at June 30, 2021 compared to -€242,269 thousand at June 30, 2020.
(2) Net comprehensive income for the period attributable to owners of the parent amounted to €104,289 thousand at June 30, 2021 compared to -€258,447 thousand at June 30, 2020.
| Number of shares |
Capital | Capital reserve |
Treasury stock |
Other reserves (1) |
Translation adjustment |
Net profit for the period |
Attributable to owners of the parent |
Attributable to non-controlling interests |
||
|---|---|---|---|---|---|---|---|---|---|---|
| Equity at January 1, 2020 | 148,566 | 8,914 | 17,389 | -54,071 | 2,044,775(1) | -30,385 | 258,197 | 2,244,819 | 98,774 | 2,343,593 |
| Appropriation of net profit at December 31, 2019 | - | - | - | - | 258,197 | - | -258,197 | - | - | - |
| Net profit at June 30, 2020 | - | - | - | - | - | - | -403,512 | -403,512 | -14,343 | -417,855 |
| Total gains and losses recognized directly in equity | - | - | - | - | -3,002 | -23,941 | - | -26,943 | -3,696 | -30,639 |
| Exchange differences on translating foreign operations | - | - | - | - | 673 | -23,941 | - | -23,268 | -3,696 | -26,964 |
| Actuarial gains/(losses) relating to defined benefit plans | - | - | - | - | -8,148 | - | - | -8,148 | - | -8,148 |
| Cash flow hedges - Interest rate instruments | - | - | - | - | 130 | - | - | 130 | - | 130 |
| Cash flow hedges - Currency instruments | - | - | - | - | 2,081 | - | - | 2,081 | - | 2,081 |
| Change in the fair value adjustment of long-term investments in equity instruments and funds |
- | - | - | - | -752 | - | - | -752 | - | -752 |
| Revaluation of assets and liabilities due to hyperinflation in Argentina |
- | - | - | - | 3,015 | - | - | 3,015 | - | 3,015 |
| Net income and gains and losses recognized directly in equity | - | - | - | - | 255,195 | -23,941 | -661,709 | -430,455 | -18,039 | -448,494 |
| Treasury stock transactions | - | - | - | -12,369 | -636 | - | - | -13,005 | - | -13,005 |
| Dividends paid by Compagnie Plastic Omnium SE | - | - | - | - | -71,221(3) | - | - | -71,221 | - | -71,221 |
| Dividends paid by other Group companies | - | - | - | - | - | - | - | - | -16,550 | -16,550 |
| Stock option costs | - | - | - | - | 1,212 | - | - | 1,212 | - | 1,212 |
| Deferred tax on stock option and share purchase plans | - | - | - | - | 114 | - | - | 114 | - | 114 |
| Equity at June 30, 2020 | 148,566 | 8,914 | 17,389 | -66,440 | 2,229,440(1) | -54,326 | -403,512 | 1,731,464 | 64,185 | 1,795,649 |
| Net profit from second-half 2020 | - | - | - | - | - | - | 152,400 | 152,400 | 12,403 | 164,803 |
| Net income recognized directly in equity | - | - | - | - | 7,642 | -26,878 | - | -19,236 | -1,040 | -20,276 |
| Exchange differences on translating foreign operations Actuarial gains/(losses) relating to defined benefit plans |
- - |
- - |
- - |
- - |
1,986 5,296 |
-26,878 - |
- - |
-24,892 5,296 |
-1,040 - |
-25,932 5,296 |
| Cash flow hedges - Interest rate instruments | - | - | - | - | 35 | - | - | 35 | - | 35 |
| Cash flow hedges - Currency instruments | - | - | - | - | 37 | - | - | 37 | - | 37 |
| Change in the fair value adjustment of long-term investments in equity instruments and funds |
- | - | - | - | -3,279 | - | - | -3,279 | - | -3,279 |
| Revaluation of assets and liabilities due to hyperinflation in Argentina |
- | - | - | - | 3,566 | - | - | 3,566 | - | 3,566 |
| Net income and gains and losses recognized directly in equity | - | - | - | - | 7,642 | -26,878 | 152,400 | 133,163 | 11,363 | 144,527 |
| Treasury stock transactions | - | - | - | 5,101 | 1,303 | - | - | 6,404 | - | 6,404 |
| Change in scope of consolidation and reserves | - | - | - | - | - | - | - | - | 1,157 | 1,157 |
| Dividends paid by other Group companies | - | - | - | - | - | - | - | - | -7,028 | -7,028 |
| Stock option costs | - | - | - | - | 196 | - | - | 196 | - | 196 |
| Deferred tax on stock option and share purchase plans | - | - | - | - | -618 | - | - | -618 | - | -618 |
| Equity at December 31, 2020 | 148,566 | 8,914 | 17,389 | -61,339 | 2,237,962(1) | -81,204 | -251,112 | 1,870,611 | 69,677 | 1,940,288 |
| Appropriation of net profit at December 31, 2020 | - | - | - | - | -251,112 | - | 251,112 | - | - | - |
| Net profit at June 30, 2021 | - | - | - | - | - | - | 142,241 | 142,241 | 7,180 | 149,421 |
| Net income recognized directly in equity | - | - | - | - | 15,387 | 16,072 | - | 31,459 | 1,466 | 32,925 |
| Exchange differences on translating foreign operations | - | - | - | - | -339 | 16,072 | - | 15,733 | 1,466 | 17,199 |
| Actuarial gains/(losses) relating to defined benefit plans | - | - | - | - | 11,574 | - | - | 11,574 | - | 11,574 |
| Cash flow hedges - Interest rate instruments | - | - | - | - | 98 | - | - | 98 | - | 98 |
| Cash flow hedges - Currency instruments | - | - | - | - | 164 | - | - | 164 | - | 164 |
| Change in the fair value adjustment of long-term investments in equity instruments and funds |
- | - | - | - | 2,983 | - | - | 2,983 | - | 2,983 |
| Revaluation of assets and liabilities due to hyperinflation in Argentina |
- | - | - | - | 907 | - | - | 907 | - | 907 |
| Net income and gains and losses recognized directly in equity | - | - | - | - | -235,725 | 16,072 | 393,353 | 173,700 | 8,646 | 182,346 |
| Treasury stock transactions | - | - | - | 23,113 | -32,929 | - | - | -9,816 | - | -9,816 |
| Capital reduction through cancellation of treasury stock | -1,444 | -87(2) | - | - | - | - | - | -87 | - | -87 |
| Dividends paid by Compagnie Plastic Omnium SE | - | - | - | - | -71,287(3) | - | - | -71,287 | - | -71,287 |
| Dividends paid by other Group companies | - | - | - | - | - | - | - | - | -10,821 | -10,821 |
| Stock option costs | - | - | - | - | 1,338 | - | - | 1,338 | - | 1,338 |
| Deferred tax on stock option and share purchase plans | - | - | - | - | -345 | - | - | -345 | - | -345 |
| Equity at June 30, 2021 | 147,122 | 8,827 | 17,389 | -38,226 | 1,899,015(1) | -65,132 | 142,241 | 1,964,115 | 67,502 | 2,031,617 |
Shareholders' equity
Total equity
(1) See Notee 5.2.1.for the breakdown of « Other reserves ».
(2) See Notes 2.2.1.1 and 5.2.1.1 on the capital reduction of Compagnie Plastic Omnium SE.
(3) The dividend per share distributed on June 30, 2021 by Compagnie Plastic Omnium in respect of the 2020 fiscal year is 0,49 euro as in 2020 in respect of the 2019 fiscal year (see Note 5.2.2 on dividends voted and paid).
| In thousands of euros | Notes | First-half 2021 | 2020 | First-half 2020 |
|---|---|---|---|---|
| I - CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net income | 3.1.1 | 149,421 | - 253,051 | -417,855 |
| Dividends received from associates and joint ventures | 30,619 | 35,473 | 15,085 | |
| Non-cash items | 272,244 | 776,941 | 528,107 | |
| Share of profit/(loss) of associates and joint ventures | 4.4 | - 16,775 | - 29,101 | -9,272 |
| Stock option plan expense | 1,338 | 1,408 | 1,212 | |
| Other adjustments | - 614 | 4,676 | -747 | |
| Depreciation and provisions for impairment of fixed assets Amortization and provisions for impairment of intangible assets |
142,098 88,644 |
472,593 288,313 |
338,705 197,330 |
|
| Changes in provisions | - 7,682 | 12,861 | 15,065 | |
| Net (gains)/losses on disposals of non-current assets | 6,357 | 584 | 728 | |
| Operating grants recognized in the income statement | - 590 | - 825 | -415 | |
| Current and deferred taxes | 4.7.1 | 38,289 | - 31,002 | -46,931 |
| Cost of net debt | 21,179 | 57,434 | 32,434 | |
| CASH GENERATED BY OPERATIONS (before cost of net debt and tax) (A) | 452,284 | 559,363 | 125,338 | |
| Change in inventories and work-in-progress – net | - 92,358 | 52,740 | -8,856 | |
| Change in trade receivables – net | 24,199 | - 10,329 | , | |
| Change in trade payables | - 32,332 | - 43,988 | -393,060 | |
| Change in other operating assets and liabilities - net | - 7,753 | - 43,510 | -39,087 | |
| CHANGE IN WORKING CAPITAL REQUIREMENTS (B) | - 108,244 | - 45,088 | -414,544 | |
| TAXES PAID (C) | - 19,280 | - 39,676 | -13,330 | |
| Interest paid | - 24,967 | - 70,603 | -46,341 | |
| Interest received | 859 | 4,010 | 3,189 | |
| NET FINANCIAL INTEREST PAID (D) | - 24,108 | - 66,593 | -43,152 | |
| NET CASH GENERATED BY OPERATING ACTIVITIES (A+B+C+D) | 300,652 | 408,006 | -345,687 | |
| II – CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Acquisitions of property, plant and equipment | 3.1.3 | - 70,829 | - 217,654 | -116,096 |
| Acquisitions of intangible assets | 3.1.3 | - 65,885 | - 143,018 | -70,201 |
| Disposals of property, plant and equipment | 1,758 | 2,651 | 856 | |
| Disposals of intangible assets | 943 | 1,046 | 823 | |
| Net change in advances to suppliers of fixed assets | - 16,079 | - 20,028 | -43,139 | |
| Investment grants received | 644 | 2,758 | 1,828 | |
| NET CASH USED IN OPERATIONS-RELATED INVESTING ACTIVITIES (E) | - 149,449 | - 374,245 | -225,929 | |
| FREE CASH FLOW (A + B + C + D + E) | 151,203 | 33,761 | -571,616 | |
| Acquisitions of shares in subsidiaries and associates, investments in associates and joint ventures, and related investments |
2.2.2.1.1 - 5.1.10.1 | - 43,489 | - 812 | - |
| Acquisitions of long-term investments in equity instruments and funds | 5.1.5.1 | - 49,511 | - 7,107 | -4,957 |
| Disposals of long-term investments and financial income in listed equity instruments and funds | 5.1.5.1 | 277 | 50,337 | - |
| Impact of changes in scope of consolidation - cash and cash equivalents contributed by companies entering the scope of consolidation |
2.2.2.1.4 - 5.1.10.1 | 373 | 1,418 | - |
| NET CASH FROM FINANCIAL TRANSACTIONS (F) | - 92,349 | 43,836 | -4,957 | |
| NET CASH FROM INVESTING ACTIVITIES (E+F) | - 241,798 | - 330,409 | -230,886 | |
| III - CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Reductions (Increases) in share capital and premiums | 2.2.1.1 - 5.2.1.1 | - 87 | - | - |
| Purchases/sales of treasury stock | - 9,816 | - 6,601 | -13,005 | |
| Dividends paid by Compagnie Plastic Omnium SE to Burelle SA | 5.1.11 | - 42,788 | - 42,788 | -42,788 |
| Dividends paid to other shareholders | 5.1.11 | - 40,009 | - 51,502 | -44,983 |
| Increase in financial debt(1) | 2.2.2.1.1 - 5.2.5.6 | 309,658 | 566,866 | 930,787 |
| Repayment of financial debt and lease contracts liabilities, net | - 467,714 | - 845,347 | -753,127 | |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (G) | - 250,758 | - 379,372 | 76,884 | |
| Assets held for sale (and discontinued operations) (H) | - | - | - | |
| Effect of exchange rate changes (I) | 1,167 | - 13,590 | -10,228 | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A + B + C + D + E + F + G + H + I) |
- 190,737 | - 315,365 | -509,920 | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 5.1.9.2 - 5.2.5.6 | 817,712 | 1,133,078 | 1,133,078 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5.1.9.2 - 5.2.5.6 | 626,975 | 817,712 | 623,158 |
(1) The change in financial debt includes €70 million in share premiums not yet paid by the Group in connection with the acquisition of the stake in EKPO. See Note 2.2.2.1.1.
The condensed consolidated financial statements of the Plastic Omnium Group for the six months ended June 30, 2021 were approved by the Board of Directors on July 20, 2021.
Compagnie Plastic Omnium, a company governed by French law, was set up in 1946. The bylaws set its duration until April 24, 2112. It is registered in the Lyon Trade and Companies Register under number 955 512 611 and its registered office is at 19, boulevard Jules Carteret, 69007 Lyon, France.
The terms "Compagnie Plastic Omnium", "the Group" and "the Plastic Omnium Group" refer to the group of companies comprising Compagnie Plastic Omnium SE and its consolidated subsidiaries.
The Plastic Omnium Group is a global leader in the transformation of plastic materials for the automotive market for body parts, storage systems and fuel supply systems ("Industries" segment) and front-end modules ("Modules" segment).
The Group has organized its business into two operating segments:
oIntelligent Exterior Systems (IES), dedicated to complex and intelligent body systems;
oClean Energy Systems (CES), dedicated to clean energy storage systems and emission reduction systems.
Modules: module design, development and assembly (HBPO).
Plastic Omnium Group shares have been traded on the Paris Stock Exchange since 1965. The Group is listed on Eurolist compartment A and is included in the SBF 120 and the CAC Mid 60 indices. The main shareholder is Burelle SA, which held 59.35% of the Group (60.04% excluding treasury shares) with a voting rights of 73.28 % at June 30, 2021.
The unit of measurement used in the Notes to the consolidated financial statements is thousand euros, unless otherwise indicated.
The Group's condensed consolidated financial statements for the six months ended June 30, 2021 have been prepared in accordance with IAS 34 "Interim Financial Reporting".
These condensed half-yearly consolidated financial statements do not include all the information required for annual financial statements and should be read in conjunction with the consolidated financial statements at December 31, 2020.
The accounting policies used are those applied by the Group at December 31, 2020 and described in Note 1 "Accounting policies, accounting rules and principles" of the 2020 consolidated financial statements.
The Group has not early applied any standards, interpretations and amendments that are not mandatory at June 30, 2021, and applied the accounting principles described in the consolidated financial statements at December 31, 2020 without any change.
The amendments to IAS 37 "Provisions, Contingent Liabilities and Contingent Assets", which specify that the costs to be included in determining whether a contract is onerous must include both the incremental costs of performing the contract and an allocation of other costs directly related to the performance of the contract, applicable as of January 1, 2022, have not been applied in advance. However, it should be noted that there is no impact as the aggregate currently used by the Group in the analysis of onerous contracts is the gross profit.
The tax expense (current and deferred) for the period is determined based on the estimated annual tax rate, applied to profit before tax for the period excluding significant non-recurring items.
See Note 2.1.2 the "Deferred tax assets".
The change in interest rates during the first-half 2021 led the Group to reassess its main employee benefits obligations in Europe and the United States. The rates used at June 30, 2021 in the main regions are respectively:
0.90% for the euro zone, compared to 0.35% at December 31, 2020; and
3.04% for the United States, compared to 2.46% at December 31, 2020.
The half-year expense for post-employment benefits corresponds to half of the budgeted net expense for the 2021 fiscal year, determined on the basis of the actuarial data December 31, 2020 and assumptions used at June 30, 2021, after taking into account, where applicable, specific events such as plan changes.
At June 30, 2021, as no indications of impairment had been identified by the Group, no impairment tests were carried out on goodwill.
The impairment tests performed in the context of the Covid-19 crisis on other depreciable intangible assets and depreciable tangible assets have been updated and the corresponding impairments adjusted where necessary.
In preparing its financial statements, the Plastic Omnium Group uses estimates and assumptions to assess some of its assets, liabilities, income, expenses and commitments. These estimates and assumptions, which are reviewed periodically by Senior Management, may lead to a material adjustment to the carrying amount of assets and liabilities. At June 30, 2021, they mainly concerned:
deferred taxes;
impairment tests on goodwill, intangible and tangible assets
The tests performed by the Group as part of the preparation of the consolidated financial statements at June 30, 2021, are based on the value in use, the latter being calculated as the present value of future cash flows and the discount rate. The assumptions that could have a significant impact on the financial statements relate in particular to the operating margin, discount rates and growth rates (see Note 2.1.1 "Asset impairment tests").
oretirement commitments and other employee benefits; and
oother provisions (workforce adjustment, litigation, customer guarantees, legal and tax risks, etc.);
The use of the discount rate in determining the right of use and the lease liability for the leased property.
After the shutdown of the Group's plants and research and development centers, in line with the shutdowns of the OEM's production lines in the first-half 2020 related to the Covid-19 crisis, business resumed in the second-half 2020 with a normal production rate for most plants.
In the first-quarter 2021, a shortage of semiconductors and raw materials impacting the worldwide automotive industry forced the Group's customers to shut down some of their production lines for varying lengths of time. This shortage and production line shutdowns worsened in the second quarter, and led to the Group adjusting its own production. The impact of customer shutdowns on the Group's consolidated sales is estimated at €518 million (versus €550 million on the Group's economic sales).
Based on information received from our customers and market intelligence, the Group expects that semiconductor shortages will continue to have a negative impact on automotive production in the second half of 2021. The Group does not expect semiconductor shortages beyond 2022.
The notes below cover the impacts and uncertainties related to the continuation of the Covid-19 pandemic and the automotive components shortage: see Note 2.1 "Management by the Group of the Covid-19 pandemic, the shortage of semiconductors and the impacts in the Group's financial statements for the first-half 2021".
In this context of the Covid-19 pandemic and the shortage of semiconductors for the automotive industry, the global production figures in terms of number of vehicles over the first-half of 2021 and 2020 are presented below:
| Source: IHS (1) In thousands of vehicles |
First-half 2021 | First-half 2020 | Change | % |
|---|---|---|---|---|
| Vehicle production | 38,023 | 29,284 | 8,738 | 29.8% |
(1) IHS: "IHS Markit", an Anglo-American specialist economic information company, which publishes trends and forecasts, particularly
for the automotive sector. Publication: " IHS database as of June 15, 2021 – [0;3.5t PC + LCV]".
The impacts directly related to the continuing Covid-19 pandemic and the shortage of semiconductors and raw materials are described in the following notes.
As part of the preparation of the half-year financial statements and in accordance with IAS 36 "Impairment of assets", the impairment of non-current assets, including intangible assets, property, plant and equipment, assets in progress and HBPO customer contracts, recognized at December 31, 2020, has been updated at June 30, 2021.
In the first-half, the individual changes and the total net change are immaterial.
Impairments in the financial statements over the last three half-years are presented below:
| 2020 | 2021 | ||||
|---|---|---|---|---|---|
| In millions of euros | June 30 | Change over the second-half |
December, 31 | Change over the first-half |
June 30 |
| Industrial assets | 176.6 | -6.0 | 170.6 | -0.3 | 170.3 |
| Project assets | 53.1 | 3.1 | 56.2 | -3.9 | 52.3 |
| Customer contracts | 32.0 | -8.6 | 23.4 | 0.0 | 23.4 |
| Total | 261.7 | -11.5 | 250.2 | -4.2 | 246.0 |
These tests were updated on the basis of forecast data updated and revised in May and June 2021. They take into account IHS estimates of the volume, forecasts received from OEMs, discounted where appropriate depending on the history and knowledge of each program and in relation to market specifics.
The discount rate used is unchanged from last year, i.e. 9% and adjusted if necessary to take into account specific country economic conditions such as in India. Similarly, the perpetual growth rate used to determine the terminal value takes into account local economic conditions.
The changes in impairments of property, plant and equipment and intangible assets are recognized in "Other operating income and expenses" (see Note 4.5).
At June 30, 2021, as for December 31, 2020, sensitivity analyzes were carried out on the tests which led to the most significant impairments in the United States and in Germany. These impairments represent more than 60% of the total impairment of industrial assets and projects.
In this context, the Operating Margin was retained as a key assumption since it reflects the impact of the following two effects:
A +/-10% change in the operating margin used over the term of the plan (2021-2025) and in the determination of the terminal value would have the following consequences:
The Group's tax position has been analyzed taking into account the latest earnings forecasts, in line with the assumptions made in the valuation of other assets.
In accordance with the Group's accounting principles, tax credits and deferred tax assets on tax loss carryforwards and temporary differences are only recognized when the probability of their utilization within a relatively short period of time is proven.
The impairment of deferred tax assets over the respective periods amounted to:
Impacts over the fiscal year 2021 are explained in Note 4.7 "Income tax".
State aid in the context of part-time activity over the last three half-years amounts to:
€1.6 million for the first-half 2021; €18.1 million for the first-half 2020; and €13.6 million for the second-half 2020.
This State aid is recognized as a reduction in personnel costs.
Since fiscal year 2020, the Group has implemented very strict health measures ranging from providing protective equipment for employees, hydro-alcoholic gels, temperature-taking equipment, regular disinfection of premises, floor markings and displaying of instructions, etc.
These measures will be maintained until the health crisis has ended.
The costs incurred to implement these measures against Covid-19 amounted to:
They are recognized as operating expenses in the operating margin.
At its meeting of February 17, 2021, the Board of Directors of Compagnie Plastic Omnium SE decided to cancel 1,443,954 treasury shares (0.97% of the share capital) effective February 25, 2021.
Compagnie Plastic Omnium SE's share capital, made up of 147,122,153 shares with a par value of €0.06, was thus reduced to €8,827,329.18. See Note 5.2.1.1 "Share capital of Compagnie Plastic Omnium SE".
At June 30, 2021, this transaction brings Burelle SA's stake in Compagnie Plastic Omnium SE from 58.78% to 59.35% of the share capital before the cancellation of the treasury shares.
Plastic Omnium Group and ElringKlinger AG, a German family-owned listed group and automotive parts manufacturer headquartered in Dettingen (in Bavaria), signed on October 28, 2020:
Both agreements were subject to competition authorities and customary legal requirements. Plastic Omnium Group received the approval of the competition authorities during the first-quarter, which enabled the transactions described below to be completed at March 1, 2021:
Plastic Omnium Group and its partner ElringKlinger created the joint venture "EKPO Fuel Cell Technologies" on March 1, 2021. Through the subscription to a capital increase carried out by EKPO Fuel Cell Technologies, the Plastic Omnium Group acquired 40% of the shares for €100 million.
ElringKlinger thus owns 60% of the joint venture and Plastic Omnium Group 40%. The partnership agreement documents ElringKlinger's control and that Plastic Omnium has a significant influence over the operation. ElringKlinger brought its fuel cell business, more than twenty years of know-how and R&D capabilities, giving a large development potential.
This business employs more than 150 people and holds a portfolio of more than 150 patents in fuel cell components and several high power density fuel cell platforms, already marketed and manufactured at its Dettingen/Erms site (Baden-Württemberg), where the joint venture also has its registered office.
The price of the equity interest as well as the payment terms are presented in Table 2.2.2.1.1.
Plastic Omnium Group acquired on March 1, 2021 all of the shares in the Austrian subsidiary of ElringKlinger, "ElringKlinger Fuel Cell Systems Austria GmbH (EKAT)", specialized in integrated hydrogen systems, to complete its global hydrogen offering. The acquisition price is €13.4 million.
The corporate name of this company has been changed and is now "Plastic Omnium New Energies Wels GmbH".
The acquisition prices as well as the payment terms are summarized in the table below:
| EKPO Fuel Cell Technologies | Plastic Omnium New Energies Wels GmbH |
|||
|---|---|---|---|---|
| In % | ||||
| Consolidation date in the Group's consolidated financial statements | March 1, 2021 | March 1, 2021 | ||
| Percentage of interest | 40% | 100% | ||
| Consolidation method | Equity method | Full consolidation | ||
| In thousands of euros | Amount paid on March 1, 2021 |
Balance to be paid |
Amount paid on March 1, 2021 |
Total of acquisitions |
| Acquisition price | 30,040 | 70,000(1) | 13,449 | 113,489 |
| Planned payment schedule for the balance of the acquisition price | ||||
| of the EKPO shares: | In thousands of euros | |||
| March 1, 2022 | 30,000 | |||
| March 1, 2023 | 10,000 | |||
| September 1, 2023 | 10,000 | |||
| March 1, 2024 | 10,000 |
(1) The remaining €70 million payable in respect of the acquisition of a 40% stake in EKPO are recorded as financial liabilities at June 30, 2021.
September 1, 2024 10,000
The provisional allocation of the acquisition price to the acquired assets and liabilities identified a "Technology" intangible asset, provisionally valued at €131 million (i.e. €52 million for the share held by the Plastic Omnium Group), resulting in a revaluation of the intangible assets recognized by the entity of €117 million. This asset is amortized over twelve years with effect from March 1, 2021. The amortization charge for this intangible asset is included in the operating margin under "Share of profit/(loss) of associates and joint ventures". See Note 4.4.
At June 30, 2021, the 40% share of equity held by the Group and recognized under "Equity method investments" (See Note 5.1.4), includes a provisional goodwill for €57.9 million.
The provisional allocation of the acquisition price to the acquired assets and liabilities identified a "Technology" intangible asset, provisionally valued at €8.8 million. It is amortizable over twelve years with effect from March 1, 2021.
At June 30, 2021, the provisional goodwill, after taking into account the deferred tax liability of €2.2 million related to this intangible asset, amounted to €6.3 million.
The provisional opening balance sheet as of March 1, 2021 is presented below. It will be finalized by March 1, 2022.
| Provisional allocation of the acquisition prices to the acquired assets and liabilities | ||||||||
|---|---|---|---|---|---|---|---|---|
| EKPO Fuel Cell Technologies | Plastic Omnium New Energies Wels GmbH |
|||||||
| In thousands of euros | Equity of the entity at March 1, 2021 and the provisional allocation of acquisition price |
Share of equity acquired by the Group and provisional allocation of the acquisition price |
Opening balance sheet at March 1, 2021 |
Equity acquired and adjustments |
Opening balance sheet at March 1, 2021 |
Total of the Group acquisitions in 2021 |
||
| Calculation basis | 100.00% | 40.00% | 100.00% | 100.00% | ||||
| Deferred tax rate | 30.00% | 30.00% | 25.00% | 25.00% | ||||
| Equity acquired | 9,416 | 3,766 | 3,766 | 526 | 526 | |||
| Intangible asset : technology | 131,076(1) | 52,430 | 52,430 | 8,816 | 8,816 | |||
| Deferred taxes | -35,093 | -14,037 | -14,037 | -2,204 | -2,204 | |||
| Equity acquired (after adjustments) (A) | 105,399 | 42,160 | 42,160 | 7,138 | 7,138 | 49,298 | ||
| Intangible of ElringKlinger related to the capital increase (B) | 44,661 | 17,864 | ||||||
| Contribution of Plastic Omnium Group (C) | 100,040 | 40,016 | ||||||
| Equity after capital increase (D) = (A + B + C) | 250,100 | 100,040 | ||||||
| Goodwill (E) = (D - A) = (B + C) | 144,701 | 57,880 | 57,880(2) | 6,311 | 6,311(3) | 64,191(4) | ||
| Total | 250,100 | 100,040 | 100,040 | 13,449 | 13,449 | 113,489 |
(1) This amount comprises a revaluation of €117 million recognized as part of the provisional allocation of the acquisition price.
(2) This goodwill is a component of the value of the "EKPO Fuel Cell Technologies" investments in associates accounted by the equity method in the Group consolidated Balance Sheet. See Note 5.1.4.
(3) This amount is recognized in the "Goodwill" item in the Group consolidated Balance Sheet. See Note 5.1.1.
(4) This amount is split in "Investments in associates accounted by the equity method" for €57,880 thousand and for €6,311 thousand in "Goodwill" in the Group consolidated Balance Sheet. See Notes 5.1.4 and 5.1.1.
The provisional opening balance sheets of the two companies and their contribution in the Group consolidated balance sheet at March 1, 2021, are presented in the table below.
In accordance with IFRS3R, these balance sheets will be finalized no later than March 1, 2022, i.e. within twelve months of the acquisition date:
| EKPO Fuel Cell Technologies | Plastic Omnium New Energies Wels GmbH | Total in the Group consolidated financial statements |
|---|---|---|
| March 1, 2021 | March 1, 2021 | March 1, 2021 |
| Consolidation percentage | 100% | 100% | 100% | 100% | 40% | 100% | 100% | 100% | 100% | 100% | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| -------------------------- | ------ | ------ | ------ | ------ | ----- | ------ | ------ | ------ | ------ | ------ | -- |
| In thousands of euros ASSETS |
Balance Sheet before the allocation of acquisition price |
Provisional allocation of the acquisition price |
Provisional opening Balance Sheet |
Change to Group contribution |
Contribution in the Group's provisional opening consolidated balance sheet |
Balance Sheet before the allocation of acquisition price |
Provisional allocation of the acquisition price |
Provisional opening Balance Sheet |
Passage en contributio n du Groupe |
Contribution in the Group's provisional opening consolidated balance sheet |
Total contributions of the provisional opening balance sheets in the Group's consolidated statements |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Goodwill | - | 44,661 | 44,661 | -44,661 | - | - | 6,311 | 6,311 | - | 6,311 | 6,311 |
| Other intangible assets | 14,101 | 116,975 | 131,076 | -131,076 | - | 59 | 8,816 | 8,875 | - | 8,875 | 8,875 |
| Intangible asset"Technology" | 14,101 | 116,975 | 131,076 | -131,076 | - | - | 8,816 | 8,816 | - | 8,816 | 8,816 |
| Other intangible assets | - | - | - | - | - | 59 | - | 59 | - | 59 | 59 |
| Property, plant and equipment | 14,080 | - | 14,080 | -14,080 | - | 3,358 | - | 3,358 | - | 3,358 | 3,358 |
| Investments in associates and joint ventures |
- | - | - | 100,040 | 100,040 | - | - | - | - | 100,040 | |
| Cancellation of securities acquired in exchange of the share in the Group reserves |
- | - | - | -100,040 | -100,040 | - | - | - | -13,449 | -13,449 | -113,489 |
| Available-for-sale financial assets | - | - | - | - | - | - | - | - | - | - | - |
| Deferred tax assets | - | - | - | - | - | 7 | - | 7 | - | 7 | 7 |
| TOTAL NON-CURRENT ASSETS | 28,181 | 161,636 | 189,817 | -189,817 | - | 3,484 | 15,127 | 18,611 | -13,449 | 5,162 | 5,162 |
| Inventories | - | - | - | - | - | 7 | - | 7 | - | 7 | 7 |
| Trade receivables | 1,073 | - | 1,073 | -1,073 | - | - | - | - | - | - | - |
| Other receivables | 66,558 | - | 66,558 | -66,558 | - | 42 | - | 42 | - | 42 | 42 |
| Other financial assets and financial | 1,191 | - | 1,191 | -1,191 | - | - | - | - | - | - | - |
| receivables | |||||||||||
| Cash and cash equivalents | 30,045 | - | 30,045 | -30,045 | - | 373 | - | 373 | - | 373 | 373 |
| TOTAL CURRENT ASSETS | 98,867 | - | 98,867 | -98,867 | - | 422 | - | 422 | - | 422 | 422 |
| TOTAL ASSETS | 127,048 | 161,636 | 288,684 | -288,684 | - | 3,906 | 15,127 | 19,033 | -13,449 | 5,584 | 5,584 |
| EQUITY AND LIABILITIES | |||||||||||
| Consolidated reserves | - | - | - | - | - | 426 | - | 426 | -426 | - | - |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT |
123,557 | 126,543 | 250,100 | -250,100 | - | 526 | 12,923 | 13,449 | -13,449 | - | - |
| Attributable to non-controlling interests | - | - | - | - | - | - | - | - | - | - | - |
| TOTAL EQUITY | 123,557 | 126,543 | 250,100 | -250,100 | - | 526 | 12,923 | 13,449 | -13,449 | - | - |
| Non-current and current borrowings | - | - | - | - | - | - | - | - | - | - | - |
| Non-current finance lease liabilities | - | - | - | - | - | 1,218 | - | 1,218 | - | 1,218 | 1,218 |
| Provisions for pensions and other post employment benefits |
2,832 | - | 2,832 | -2,832 | - | 4 | - | 4 | - | 4 | 4 |
| Provisions for liabilities and charges | - | - | - | - | - | - | - | - | - | - | - |
| Current government grants | - | - | - | - | - | - | - | - | - | - | - |
| Deferred tax liabilities | - | 35,093 | 35,093 | -35,093 | - | - | 2,204 | 2,204 | - | 2,204 | 2,204 |
| TOTAL NON-CURRENT LIABILITIES | 2,832 | 35,093 | 37,925 | -37,925 | - | 1,222 | 2,204 | 3,426 | - | 3,426 | 3,426 |
| Current borrowings and financial debt | - | - | - | - | - | 1,376 | - | 1,376 | - | 1,376 | 1,376 |
| Current finance lease liabilities | - | - | - | - | - | 158 | - | 158 | - | 158 | 158 |
Other current debt - - - - - - - - - - - Provisions for liabilities and charges 659 - 659 -659 - - - - - - - Trade payables - - - - - 232 - 232 - 232 232 Other operating liabilities - - - - - 392 - 392 - 392 392 TOTAL CURRENT LIABILITIES 659 - 659 -659 - 2,158 - 2,158 - 2,158 2,158 TOTAL EQUITY AND LIABILITIES 127,048 161,636 288,684 -288,684 - 3,906 15,127 19,033 -13,449 5,584 5,584
Net cash and cash equivalents 30,045 - 30,045 -30,045 - 373 - 373 - 373 373 Net debt 31,236 - 31,236 -31,236 - -2,319 - -2,319 - -2,319 -2,319
1,191 - 1,191 -1,191 - -2,692 - -2,692 - -2,692 -2,692
Gross debt
The contribution in the first-half 2021 of "EKPO Fuel Cell Technologies" and "Plastic Omnium New Energies Wels GmbH" to Plastic Omnium Group Profit and Loss key aggregates is provided here after:
| First-half 2021 Contribution to the Group Profit and Loss key aggregates |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Plastic Omnium Group |
EKPO Fuel Cell Technologies |
% of Plastic Plastic Omnium Omnium New Energies Group Wels GmbH consolidated revenue |
% of Plastic Omnium Group consolidated revenue |
Total contributions of the new entities in the group Plastic Omnium consolidated statements |
|||||
| In thousands of euros | Totals | Totals | % | Totals | % | Totals | % | ||
| Consolidated revenue of Plastic Omnium Group |
3,784,326 | 100.0% | |||||||
| Consolidated revenue of entities acquired |
N/A | N/A | N/A | - | 0.0% | 0.0% | - | 0.0%(1) | |
| Operating Margin of entities acquired |
-2,772 | N/A(1) | -0.1% | 180 | N/A(1) | 0.0% | -2,592 | -0.1%(1) |
(1) The percentages are presented in relation to the weight compared to the sales.
During the first-half 2021, as co-sponsor and member of the investment advisory committee, the Group paid AP Ventures, a London-based venture capital firm specializing in hydrogen and fuel cells, a total of €2.2 million (equivalent to \$2.4 million).
The Group committed to invest \$30 million over the life of the fund. The Group's total payment amounted to €6.1 million (equivalent to \$7.2 million) as at June 30, 2021 (see Note 5.1.5.1 "Long-term investments in equities and funds").
The Group will transfer to France its innovation and research activities currently located in Brussels, Belgium. These activities are part of the Clean Energy Systems division of the "Industries" segment.
At June 30, 2021, restructuring expenses recognized in connection with this transfer of business amounted to €11.6 million, of which €8.0 million were for workforce adjustment costs. The provision for employee benefit obligations was reduced by €3.7 million to take into account the revised termination dates of the concerned employees.
In the first-half 2021, the Group retained the same credit lines as at December 31, 2020.
The only change over the first-half is the extension of the maturity for six months from May to October 2021, related to a €30 million credit line.
See Notes 5.1.9 "Cash and cash equivalents", 5.2.5.5 "Confirmed medium-term credit lines" and 5.2.5.6 "Reconciliation of gross and net financial debt".
During the first-half of 2021, the Group reduced its issuance of "Neu-CP". At June 30, 2021, it amounted to €100.5 million compared to €200.5 million at December 31, 2020.
The terms of these issuances are provided in Note 5.2.5.4 "Short-term borrowings: issuance of "Negotiable European commercial paper" (Neu-CP)".
See also Note 5.2.5.6 "Reconciliation of gross and net financial debt".
The Argentine peso has fallen by 55% since December 31, 2020, impacting the main income statement aggregates of the Group's two Argentinian subsidiaries in the first-half 2021; Plastic Omnium Auto Inergy Argentina SA (Clean Energy Systems) and Plastic Omnium Argentina (Intelligent Exterior Systems); as follows:
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Impact on the Group's revenue | + €1,492K | + €467K |
| Impact on the Group's operating margin | - €526K | - €432K |
| Impact on the Group's financial expense | - €133K | - €1,301K |
| Impact on the Group's other operating expense | - €5K | - €964K |
| Impact on the Group's tax expense | - €61K | - €159K |
| Impact on the Group's net income | - €724K | - €2,856K |
The Group uses the concept of "Economic revenue" for its operational management, which corresponds to the consolidated revenue of the Group and its joint ventures at their percentage stake: Yanfeng Plastic Omnium, the Chinese leader in exterior body parts, SHB Automotive modules, the leading Korean front-end module company and BPO, a major player in the Turkish market for exterior equipment.
The Group organizes its Automotive businesses into two operating segments (see Note on "Presentation of the Group"): "Industries" and "Modules".
The columns in the tables below show the amounts by segment. The "Unallocated items" column groups together inter-segment eliminations and amounts that are not allocated to a specific segment (in particular, holding company activity) allowing for the reconciliation of segment data with the Group's financial statements. Financial results, taxes and the share of profit/(loss) of associates are monitored at Group level and are not allocated to segments. Transactions between segments are carried out on an arm's length basis.
| First-half 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| In thousands of euros | Industries | Modules | Unallocated items (2) |
Total | ||||
| Economic revenue (1) | 2,992,331 | 1,145,907 | - | 4,138,238 | ||||
| Including revenue from joint ventures consolidated at the Group's percentage stake |
253,484 | 100,428 | - | 353,912 | ||||
| Sales per Segment | 2,752,884 | 1,047,134 | -15,692 | 3,784,326 | ||||
| Inter-segment sales | -14,037 | -1,655 | 15,692 | - | ||||
| Consolidated revenue | 2,738,847 | 1,045,479 | - | 3,784,326 | ||||
| % of segment revenue - Total | 72.4% | 27.6% | - | 100.0% | ||||
| Operating margin before amortization of intangible assets acquired and before share of profit/(loss) of associates and joint ventures |
197,477 | 29,868 | - | 227,345 | ||||
| % of segment revenue | 7.2% | 2.9% | - | 6.0% | ||||
| Amortization of intangible assets acquired | -3,580 | -6,515 | - | -10,095 | ||||
| Share of profit/(loss) of associates and joint ventures | 15,410 | 1,365 | - | 16,775 | ||||
| Operating margin | 209,307 | 24,718 | - | 234,025 | ||||
| % of segment revenue | 7.6% | 2.4% | - | 6.2% | ||||
| Other operating income | 4,615 | - | - | 4,615 | ||||
| Other operating expenses | -24,775 | -529 | - | -25,304 | ||||
| % of segment revenue | -0.7% | -0.1% | - | -0.5% | ||||
| Borrowing costs | -24,672 | |||||||
| Other financial income and expenses | -954 | |||||||
| Profit/(loss) from continuing operations before income tax and after share in associates and joint ventures |
187,710 | |||||||
| Income tax | -38,289 | |||||||
| Net income | 149,421 | |||||||
| First-half 2020 | ||||||||
| In thousands of euros | Industries | Modules | Unallocated items (2) |
Total | ||||
| Economic revenue (1) | 2,394,829 | 838,257 | - | 3,233,086 | ||||
| Including revenue from joint ventures consolidated at the Group's percentage stake |
192,199 | 79,152 | - | 271,351 | ||||
| Sales per Segment | 2,210,537 | 760,148 | -8,950 | 2,961,735 |
|---|---|---|---|---|
| Inter-segment sales | -7,907 | -1,043 | 8,950 | - |
| Consolidated revenue | 2,202,630 | 759,105 | - | 2,961,735 |
| % of segment revenue - Total | 74.4% | 25.6% | - | 100.0% |
| Operating margin before amortization of intangible assets acquired and before share of profit/(loss) of associates and joint ventures |
-109,600 | -2,473 | - | -112,073 |
| % of segment revenue | -5.0% | -0.3% | - | -3.8% |
| Amortization of intangible assets acquired | -4,593 | -8,773 | - | -13,366 |
| Share of profit/(loss) of associates and joint ventures | 8,609 | 663 | - | 9,272 |
| Operating margin | -105,585 | -10,583 | - | -116,168 |
| % of segment revenue | -4.8% | -1.4% | - | -3.9% |
| Other operating income | 3,338 | 1,155 | - | 4,493 |
| Other operating expenses | -273,284 | -44,542 | - | -317,826 |
| % of segment revenue | -12.3% | -5.7% | - | -10.6% |
| Borrowing costs | -32,775 | |||
| Other financial income and expenses | -2,509 | |||
| Profit/(loss) from continuing operations before income tax and after share in associates and joint ventures |
-464,785 | |||
| Income tax | 46,931 | |||
| Net income | -417,855 |
(1) Economic revenue corresponds to revenue of the Group and its joint ventures consolidated at their percentage of ownership.
(2) "Unallocated items" corresponds to inter-segments eliminations and amounts that are not allocated to a specific segment (such as, holding company activities). This column is included to enable segment information to be reconciled with the consolidated financial statements.
| June 30, 2021 | ||||
|---|---|---|---|---|
| In thousands of euros | ||||
| Net amounts | Industries | Modules | Unallocated items | Total |
| Goodwill | 495,403 | 527,726 | - | 1,023,129 |
| Intangible assets | 424,251 | 118,212 | 5,492 | 547,955 |
| Property, plant and equipment | 1,464,317 | 144,756 | 34,070 | 1,643,143 |
| Investment property | - | - | 30 | 30 |
| Inventories | 682,845 | 75,398 | - | 758,243 |
| Trade receivables | 639,758 | 177,979 | -1,553 | 816,184 |
| Other receivables | 230,452 | 33,559 | 58,409 | 322,420 |
| Finance receivables (C) | 4,435 | - | - | 4,435 |
| Current accounts and other financial assets (D) | -1,024,650 | 2,339 | 1,031,389 | 9,078 |
| Long-term investments in equity instruments and funds - FMEA 2 (F) | 6,262 | - | 54,211 | 60,473 |
| Hedging instruments (E ) | - | - | 1,201 | 1,201 |
| Net cash and cash equivalents (A) (1) | 101,258 | 29,970 | 495,747 | 626,975 |
| Segment assets | 3,024,331 | 1,109,939 | 1,678,996 | 5,813,266 |
| Borrowings and financial debt (B) | 300,610 | 67,380 | 1,223,698 | 1,591,689 |
| Segment liabilities | 300,610 | 67,380 | 1,223,698 | 1,591,689 |
| Segment net financial debt = (B - A - C- D - E - F) (2) | a 1,213,305 |
35,071 | -358,850 | 889,527 |
| December 31, 2020 | ||||
| Industries | Modules | Unallocated items | Total | |
| Goodwill | 486,643 | 527,726 | - | 1,014,369 |
| Intangible assets | 431,700 | 124,394 | 4,753 | 560,847 |
| Property, plant and equipment | 1,495,594 | 148,162 | 32,433 | 1,676,189 |
| Investment property | - | - | 30 | 30 |
| Inventories | 602,910 | 53,902 | - | 656,812 |
| Trade receivables | 632,522 | 183,384 | -1,506 | 814,400 |
| Other receivables | 248,511 | 21,885 | 47,911 | 318,307 |
| Finance receivables (C) | 6,340 | - | - | 6,340 |
| Current accounts and other financial assets (D) | -1,046,879 | 3,226 | 1,053,707 | 10,054 |
| Long-term investments in equity instruments and funds - FMEA 2 (F) | 4,086 | - | 4,223 | 8,309 |
| Hedging instruments (E) | - | - | 7,625 | 7,625 |
| Net cash and cash equivalents (A) (1) | 90,919 | 36,679 | 690,114 | 817,712 |
| Total segment assets | 2,952,346 | 1,099,358 | 1,839,290 | |
| Borrowings and financial debt (B) | 265,472 | 67,294 | 1,324,191 | 5,890,994 1,656,957 |
| Segment liabilities | 265,472 | 67,294 | 1,324,191 | 1,656,957 |
(1) Net cash and cash equivalents as reported in the Statement of Cash Flows. See also 5.1.9.2 "Net cash and cash equivalents at end of period".
(2) See Note 5.2.5.1"Definition of debt within the Group" and Note 5.2.5.6 "Reconciliation of gross and net financial debt".
| First-half 2021 In thousands of euros |
Industries | Modules | Unallocated items |
Total |
|---|---|---|---|---|
| Acquisitions of intangible assets | 56,230 | 7,878 | 1,777 | 65,885 |
| Capital expenditure including acquisitions of investment property | 57,615 | 8,768 | 4,446 | 70,829 |
| First-half 2020 | ||||
| In thousands of euros | Industries | Modules | Unallocated items |
Total |
| Acquisitions of intangible assets | 62,236 | 7,585 | 380 | 70,201 |
The breakdown of revenue by region is based on the location of the Plastic Omnium subsidiaries generating the sales. Until 2020, it was based on the country of location of their customers. The change, implemented to simplify the process of preparing the information, has no significant impact.
For the purposes of comparability, the information for 2020 has been restated.
3.1.4.1. Information by sales region
| First-half 2021 | First-half 2020 | |||||
|---|---|---|---|---|---|---|
| In thousands of euros | Totals | % | In thousands of euros | Totals | % | |
| France | 270,866 | 6.5% | France | 207,708 | 6.4% | |
| North America | 1,029,547 | 24.9% | North America | 859,856 | 26.6% | |
| Europe excluding France | 2,005,716 | 48.5% | Europe excluding France | 1,562,680 | 48.3% | |
| South America | 55,196 | 1.3% | South America | 29,753 | 0.9% | |
| Africa | 60,566 | 1.5% | Africa | 31,951 | 1.0% | |
| Asia | 716,348 | 17.3% | Asia | 541,138 | 16.7% | |
| Economic revenue | 4,138,238 | 100% | Economic revenue | 3,233,086 | 100% | |
| Including revenue from joint ventures at the Group's percentage stake |
353,912 | Including revenue from joint ventures at the Group's percentage stake |
271,351 | |||
| Consolidated revenue | 3,784,326 | Consolidated revenue | 2,961,735 |
| Including revenue from joint ventures at the Group's percentage stake |
271,351 | |||||||
|---|---|---|---|---|---|---|---|---|
3.1.4.2. Information for the top ten contributing countries
| First-half 2021 | First-half 2020 | |||||
|---|---|---|---|---|---|---|
| In thousands of euros | Totals | % | In thousands of euros | Totals | % | |
| Germany | 676,567 | 16.3% | Germany | 513,457 | 15.9% | |
| United States | 518,601 | 12.5% | United States | 435,740 | 13.5% | |
| Mexico | 488,890 | 11.8% | Mexico | 384,563 | 11.9% | |
| China | 433,504 | 10.5% | China | 326,079 | 10.1% | |
| Spain | 323,290 | 7.8% | Spain | 268,693 | 8.3% | |
| Slovakia | 310,956 | 7.5% | Slovakia | 235,060 | 7.3% | |
| France | 270,866 | 6.5% | France | 207,708 | 6.4% | |
| United Kingdom | 174,819 | 4.2% | Poland | 134,529 | 4.2% | |
| Poland | 153,389 | 3.7% | Great Britain | 130,078 | 4.0% | |
| Korea | 148,120 | 3.6% | Korea | 128,546 | 4.0% | |
| Other | 639,236 | 15.6% | Other | 468,633 | 14.5% | |
| Economic revenue | 4,138,238 | 100% | Economic revenue | 3,233,086 | 100% | |
| Including revenue from joint ventures at the Group's percentage stake |
353,912 | Including revenue from joint ventures at the Group's percentage stake |
271,351 | |||
| Consolidated revenue | 3,784,326 | Consolidated revenue | 2,961,735 |
| Including revenue from joint ventures at the Group's percentage stake |
271,351 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 3.1.4.3. Information by automotive manufacturer | ||
|---|---|---|
| ------------------------------------------------- | -- | -- |
| First-half 2021 | First-half 2020 | ||||
|---|---|---|---|---|---|
| Automotive manufacturers | Totals | Automotive manufacturers Totals |
|||
| In thousands of euros | Totals | % of total automotive revenue |
In thousands of euros | Totals | % of total automotive revenue |
| Volkswagen Group | 1,116,216 | 27.0% | Volkswagen Group | 830,190 | 25.7% |
| Stellantis | 679,734 | 16.4% | Stellantis(1) | 529,679 | 16.4% |
| Daimler | 449,568 | 10.9% | Daimler | 323,002 | 10.0% |
| BMW | 361,693 | 8.7% | General Motors | 283,861 | 8.8% |
| General Motors | 301,145 | 7.3% | BMW | 281,976 | 8.7% |
| Total – main manufacturers | 2,908,356 | 70.3% | Total – main manufacturers | 2,248,707 | 69.6% |
| Other automotive manufacturers | 1,229,882 | 29.7% | Other automotive manufacturers(1) |
984,379 | 30.4% |
| Total economic revenue | 4,138,238 | 100.0% | Total economic revenue | 3,233,086 | 100% |
| Including revenue from joint ventures at the Group's percentage stake |
353,912 | Including revenue from joint ventures at the Group's percentage stake |
271,351 | ||
| Total consolidated revenue | 3,784,326 | Total consolidated revenue | 2,961,735 |
| In thousands of euros | Totals | % of total automotive revenue |
||
|---|---|---|---|---|
| manufacturers(1) | 984,379 | 30.4% | ||
| Including revenue from joint ventures at the Group's percentage stake |
271,351 | |||
(1) Stellantis: including PSA Peugeot Citroën for €343,173 thousand and Fiat Chrysler Automobiles for €186,506 thousand ( "Other" item) in the Consolidated Financial Statements of first-half 2020.
In addition to the ongoing Covid-19 pandemic, a problem related to the shortage of components for the automotive sector appeared in 2021 and led to the shutdown of some of the Group's plants.
In the first-half, Plastic Omnium Group's income statement was impacted by this decline in worldwide automotive production (see Chapter 2.1 "Management by the Group of the Covid-19 pandemic, the shortage of semiconductors and the impacts in the Group's financial statements for the first-half 2021").
Over the period, the Group updated the impairment of assets as well as the costs related to the various restructurings. The impacts were recorded under "Other operating income and expenses" in accordance with the Group's accounting principles.
The percentage of Research and Development costs is expressed in relation to the amount of revenue.
| In thousands of euros | First-half 2021 | % | First-half 2020 | % |
|---|---|---|---|---|
| Research and Development costs after developments sold | -117,447 | -3.1% | -122,715 | -4.1% |
| Capitalized development costs | 60,788 | 1.6% | 67,601 | 2.3% |
| Depreciation of capitalized development costs | -76,663 | -2.0% | -91,907 | -3.1% |
| Research tax credit | 5,009 | 0.1% | 4,846 | 0.2% |
| Other (including grants and contributions received) | 1,714 | 0.0% | 223 | 0.0% |
| Research and Development costs | -126,599 | -3.4% | -141,952 | -4.8% |
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Cost of goods and services sold includes: | ||
| Material consumptions (purchases and changes in inventory) (1) | -2,627,582 | -2,114,210 |
| Direct production outsourcing | -6,193 | -6,752 |
| Utilities and fluids | -45,365 | -41,008 |
| Salary and benefits | -366,731 | -337,943 |
| Other production costs | -122,105 | -145,036 |
| Depreciation and amortization | -128,797 | -146,500 |
| Provisions | 4,547 | -5,645 |
| Total | -3,292,226 | -2,797,094 |
| Research and Development costs include: | ||
| Salary and benefits | -101,736 | -98,268 |
| Depreciation, amortization and provisions | -86,928 | -101,970 |
| Other | 62,065 | 58,286 |
| Total | -126,599 | -141,952 |
| Selling costs include: | ||
| Salary and benefits | -14,559 | -12,363 |
| Depreciation, amortization and provisions | -438 | -1,650 |
| Other | -5,489 | -2,892 |
| Total | -20,486 | -16,905 |
| Administrative costs include: | ||
| Salary and benefits | -80,308 | -75,785 |
| Other administrative expenses | -28,777 | -32,729 |
| Depreciation and amortization | -8,776 | -9,433 |
| Provisions | 191 | 91 |
| Total | -117,670 | -117,857 |
(1) Including charges and reversals of provisions for inventories amounting to :
· +€1,405 thousand at June 30, 2021;
· -€10,241 thousand at June 30, 2020.
This item corresponds mainly to:
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Amortization of brands | -273 | -273 |
| Amortization of contractual customer relationships | -9,577 | -13,093 |
| Amortization of intangible assets : technology (1) | -245 | - |
| Total amortization of intangible assets acquired | -10,095 | -13,366 |
(1) See Note 2.2.2.1.2 "Provisional allocation of the acquisition prices" regarding EKPO in the "Other Significant events of the period". It has been amortized since March 1, 2021.
The associates Chengdu Faway Yanfeng Plastic Omnium and Dongfeng Plastic Omnium Automotive Exterior are included in the YFPO joint ventures and the associate EKPO Fuel Cell Technologies since March 1, 2021 (see Note 2.2.2.1 in the « Other significant events of the period »).
The Share of profit/(loss) of associates and joint ventures breaks down as follows (please refer to Note 5.1.4 for "Non-consolidated interests and investments in associates and joint ventures accounted for by the equity method" in the Balance Sheet):
| In thousands of euros | First-half 2021 % Interest |
First-half 2020 % Interest |
First-half 2021 |
First-half 2020 |
|---|---|---|---|---|
| HBPO - SHB Automotive Modules | 33.34% | 33.34% | 1,365 | 652 |
| HICOM HBPO Sdn Bhd(1) | 34.00% | 26.66% | - | 11 |
| JV Yanfeng Plastic Omnium and its subsidiaries - joint venture | 49.95% | 49.95% | 16,197 | 5,942 |
| B.P.O. AS - joint venture | 49.98% | 49.98% | 1,985 | 2,667 |
| EKPO Fuel Cell Technologies(2) | 40.00% | - | -2,772 | - |
| Total share of profit/(loss) of associates and joint ventures | 16,775 | 9,272 |
(1) HBPO Hicom was accounted using the equity method until the end of September 2020. With the takeover by the Group on October 1, 2020, the company is now fully consolidated.
(2) See Note 2.2.2.1.2 in the "Other significant events of the period". This share of profit includes a gross amount of -€1.1 million (- €0.8 million net of tax) related to the amortization of the intangible asset "Technology" recognized in the acquisition price allocation.
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Reorganization costs(1) | -6,564 | -15,567 |
| Impairment of non-current assets (2) | -3,096 | -267,156 |
| Provisions for litigations and expenses(3) | -7,620 | -11,722 |
| Foreign exchange gains and losses on operating activities (4) | -2,801 | -12,652 |
| Gains/Losses on disposals of non-current assets (2) | -308 | -776 |
| Other | -300 | -5,461 |
| Total operating income and expenses | -20,689 | -313,333 |
| - of which total income | 4,615 | 4,493 |
| - of which total expense | -25,304 | -317,826 |
Reorganization costs relate primarily to significant restructuring in the "Industries" segment in Germany and in Belgium.
The net impact of asset impairment tests over the period is -€1.9 million compared to -€261.7 million over the first-half of 2020 (see Note 2.1.1 in "Significant events of the period").
In addition, the impairment balance was reduced by +€6.1 million through disposals over the first semester of 2021, leading to a net reduction of +€4.2 million.
This item mainly includes provisions for recalls and other disputes.
Over the period, foreign exchange gains and losses on operating activities mainly concern the Mexican peso, the Argentine peso and the US dollar.
Please refer to the consolidated financial statements for the first-half 2020 for details of transactions for the previous half-year.
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Finance costs | -17,593 | -26,357 |
| Interest on lease liabilities(1) | -3,626 | -3,922 |
| Financing fees and commissions | -3,453 | -2,496 |
| Borrowing costs | -24,672 | -32,775 |
| Exchange gains or losses on financing activities | 10,628 | -131 |
| Gains or losses on interest rate and currency hedges(2) | -10,691 | 1,796 |
| Interest on post-employment benefit obligations | -758 | -791 |
| Other (3) | -133 | -3,383 |
| Other financial income and expenses | -954 | -2,509 |
| Total | -25,626 | -35,284 |
(1) See Notes 5.1.3 "Property, plant and equipment" and 5.2.5.6 "Reconciliation of gross and net financial debt".
(2) The Group no longer has any interest rate contracts. This item includes an expense of €10,561 thousand corresponding to the impact of currency hedges.
See Note 5.2.6.1.2 "Impact of unsettled foreign exchange hedges on net income and shareholder's equity".
(3) In the first-half 2021, the full amount corresponds to the financial impact of hyperinflation in Argentina for -€133 thousand compared to -€1,301 thousand during the first-half 2020.
The income tax expense breaks down as follows:
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| Current taxes on continuing activities | -47,698 | 3,186 |
| Current income tax income/(expense) | -43,633 | 5,465 |
| Tax expense/(income) on non-recurring items | -4,065 | -2,279 |
| Deferred taxes on continuing activities | 9,409 | 43,745 |
| Deferred tax income/(expense) on timing differences arising or reversed during the period | 9,410 | 46,530 |
| Expense/(income) resulting from changes in tax rates or the introduction of new taxes | -1 | -2,785 |
| Income tax income (expense) on continuing activities recorded in the consolidated income statement | -38,289 | 46,931 |
Analysis of the income tax expense includes the following:
| In thousands of euros | First-half 2021 | First-half 2020 | ||
|---|---|---|---|---|
| Totals | % (1) | Totals | % (1) | |
| Consolidated loss (profit) on continuing activities before tax and share of profit/(loss) of associates and joint ventures (A) |
170,935 | -474,056 | ||
| Tax rate applicable in France (B) | 28.40% | 32.02% | ||
| Theoretical tax income (expense) (C) = (A) x (-B) | -48,543 | 151,793 | ||
| Difference between the theoretical tax expense and the current and deferred tax expense excluding tax assessed on net interim profit on continuing activities (D) |
10,254 | 6.0% | -104,862 | 22.1% |
| Tax credits | 18,069 | 10.6% | 3,176 | -0.7% |
| Permanent differences between accounting profits and taxable profits | -4,691 | -2.7% | -4,779 | 1.0% |
| Change in unrecognized deferred taxes | 3,781 | 2.2% | -80,392 | 17.0% |
| Impact on deferred tax of a tax rate change | -1 | 0.0% | -2,276 | 0.5% |
| Impact of differences in foreign tax rates | 5,292 | 3.1% | -22,972 | 4.8% |
| Contribution to Value Added "gross value" | -2,378 | -1.4% | -3,529 | 0.7% |
| Other impacts | -9,818 | -5.7% | 5,910 | -1.2% |
| Total current and deferred tax income (expense) on continuing activities (E) = (C) + (D) |
-38,289 | 46,931 | ||
| Effective tax rate (ETR) on continuing activities (E)/(A) | 22.4% 9.9% |
(1) Percentage expressed in relation to the consolidated profit on continuing activities before tax and share of profit/(loss) of associates and joint ventures (C)
The Group's effective tax rate was 22.4% in the first-half 2021 (compared to 9.9% for first-half 2020).
In the first-half 2021, the tax expense recognized was -€38.3 million for a theoretical tax expense of -€48.5 million, based on a tax rate of 28.4%.
During the first-half 2020, the tax income recognized was €46.9 million for a theoretical tax income of €151.8 million, based on a tax rate of 32.02%.
The difference between the tax recognized and the theoretical tax mainly reflects:
€18.1 million in specific tax reductions or tax credits mainly in North America, Belgium and France (€3.2 million for first-half 2020);
-€4.7 million in permanent differences between accounting income and taxable income (-€4.8 million for first-half 2020 mainly due to taxable dividends);
€3.8 million from the effect of losses or other assets generated in the year but not recognized, net of those previously not capitalized but used or recognized during the year (-€80.4 million for first-half 2020) - Please refer to Note 2.1.2 "Deferred tax assets" in "Significant events of the period"; and
€5,3 million from the impact of lower taxes, mainly in Asia (China, Thailand) and Europe (excluding France and Germany) (-€23 million for first-half 2020).
The difference between the tax rate in France and countries with lower tax rates has a favorable impact on profits and an opposite effect when loss-making.
The net profit attributable to non-controlling interests corresponds to the share of minority interests in the profit/loss of certain fully consolidated entities controlled by the Group. It breaks down as follows:
| In thousands of euros | First-half 2021 | First-half 2020 |
|---|---|---|
| HBPO GmbH and its subsidiaries | 4,510 | -15,686 |
| Beijing Plastic Omnium Inergy Auto Inergy Co. Ltd | 777 | -157 |
| Plastic Omnium Auto Inergy Manufacturing India Pvt Ltd | 246 | -13 |
| DSK Plastic Omnium Inergy | 1,659 | 1,558 |
| DSK Plastic Omnium BV | -13 | -45 |
| Total attributable to non-controlling interests | 7,180 | -14,343 |
| Net profit attributable to owners of the parent | First-half 2021 | First-half 2020 |
|---|---|---|
| Basic earnings per share (in euros) | 0.98 | -2.77 |
| Diluted earnings per share (in euros) | 0.98 | -2.77 |
| Weighted average number of ordinary shares outstanding at end of period (in units) | 147,560,924 | 148,566,107 |
| - Treasury stock (in units) | -2,102,769 | -2,910,190 |
| Weighted average number of ordinary shares, undiluted (in units) | 145,458,155 | 145,655,917 |
| - Impact of dilutive instruments (stock options) (in units) | 386,753 | 22,813 |
| Weighted average number of ordinary shares, diluted (in units) | 145,844,908 | 145,678,730 |
| Weighted average price of the Plastic Omnium share during the period | ||
| - Weighted average share price | 29.96 | 18.94 |
As no indication of impairment was identified during the period, the Group did not perform an impairment test on goodwill.
| In thousands of euros | Gross Value | Impairment | Net value |
|---|---|---|---|
| Goodwill at January 1, 2020 | 1,017,830 | - | 1,017,830 |
| Goodwill of HBPO Hicom acquisition | 2,931 | - | 2,931 |
| Translation differences | -6,392 | - | -6,392 |
| Goodwill at December 31, 2020 | 1,014,369 | - | 1,014,369 |
| Goodwill of Plastic Omnium New Energies Wels GmbH acquisition (1) | 6,311 | - | 6,311 |
| Translation differences | 2,449 | - | 2,449 |
| Goodwill at June 30, 2021 | 1,023,129 | - | 1,023,129 |
(1) The Group acquired the company Plastic Omnium New Energies Wels GmbH on March 1, 2021. See Note 2.2.2.1 in "Other significant events of the period".
Changes in the impairment of intangible assets over the period (see Note 2.1.1 "Asset impairment tests") are recognized in "Other operating income and expenses" in Note 4.5.
| In thousands of euros | Patents and brands |
Software | Development assets |
Customer contracts |
Other | Total |
|---|---|---|---|---|---|---|
| Carrying amount published at December 31, 2020 | 9,916 | 16,082 | 468,167 | 66,680 | 2 | 560,847 |
| Capitalized development | - | - | 60,788 | - | - | 60,788 |
| Increases | 19 | 583 | 4,495 | - | - | 5,097 |
| Disposals - net | - | - | -6,087 | - | - | -6,087 |
| Newly-consolidated companies (1) | 8,816 | 59 | - | - | - | 8,875 |
| Other reclassifications | - | 1,709 | -1,597 | -5 | - | 107 |
| Amortization for the period | -2,370 | -3,914 | -76,663 | -9,577 | - | -92,524 |
| Impairments recognized and reversed(2) | - | 11 | 3,869 | - | - | 3,880 |
| Translation adjustment | -2 | 81 | 6,893 | - | - | 6,972 |
| Carrying amount at June 30, 2021 | 16,379 | 14,611 | 459,865 | 57,098 | 2 | 547,955 |
(1) The Group acquired the company Plastic Omnium New Energies Wels GmbH on March 1, 2021 (recognition of a 'Technology' asset) See Note 2.2.2.1.
(2) For the period, this item includes all impairment losses, both the update of impairment losses recognized in the previous year and those not directly related to the pandemic. Please refer to Notes 2.1.1 "Asset impairment tests" and 4.5 "Other operating income and expenses".
Property, plant and equipment corresponds to tangible assets owned but also, since January 1, 2019, to rights of use related to leases of tangible assets following the application of IFRS 16 "Leases".
Changes in the impairment of property, plant and equipment over the period (see Note 2.1.1 "Asset impairment tests") are recognized in "Other operating income and expenses" in Note 4.5.
| In thousands of euros | Land | Buildings | Tech. eq. & tool. (*) |
Property, plant and equipment under construction |
Other property, plant and equipment |
Total |
|---|---|---|---|---|---|---|
| Carrying amount at January 1, 2021 : Property, plant and equipment owned outright |
92,597 | 515,801 | 504,921 | 142,868 | 220,057 | 1,476,24 4 |
| Acquisitions | 63 | 2,582 | 5,294 | 57,326 | 5,565 | 70,829 |
| Disposals | - | -171 | -1,113 | - | -1,685 | -2,969 |
| Newly consolidated companies | - | 1,175 | 582 | 82 | 140 | 1,979 |
| Other reclassifications | 991 | 6,232 | 44,664 | -73,344 | 21,614 | 156 |
| Depreciation for the period | -745 | -14,844 | -57,094 | - | -46,156 | -118,840 |
| Impairments and reversals(1) | - | 1,071 | 217 | -1,464 | 470 | 294 |
| Translation adjustment | 1,615 | 9,014 | 9,341 | 1,578 | 2,776 | 24,323 |
| Property, plant and equipment in full ownership: Carrying amount at June 30, 2021 (A) |
94,519 | 520,858 | 506,813 | 127,048 | 202,782 | 1,452,02 0 |
| Carrying amount at January 1, 2021: Right-of-use assets for leases |
652 | 172,738 | 14,443 | - | 12,112 | 199,945 |
|---|---|---|---|---|---|---|
| Acquisitions | - | 7,011 | 2,530 | - | 3,633 | 13,175 |
| Decrease | - | -1,231 | -69 | - | -238 | -1,538 |
| Newly consolidated companies | - | 1,313 | - | - | 66 | 1,379 |
| Depreciation for the period | -61 | -16,436 | -3,419 | - | -3,637 | -23,553 |
| Other reclassifications | - | -2 | 2 | - | 2 | 2 |
| Translation adjustment | 20 | 1,303 | 266 | - | 126 | 1,714 |
| Right-of-use assets for leases: Carrying amount at June 30, 2021 (B) |
610 | 164,695 | 13,752 | - | 12,066 | 191,123 |
(1) For the period, this item includes all impairment losses, both the update of impairment losses recognized in the previous fiscal year and those not directly related to the pandemic. Please refer to Notes 2.1.1 "Asset impairment tests" and 4.5 "Other operating income and expenses".
| In thousands of euros | Land | Buildings | Tech. eq. & tool. (*) |
Tangible assets under construction |
Other tangible assets |
Total |
|---|---|---|---|---|---|---|
| Analysis of carrying amount at January 1 2021 | ||||||
| Gross value | 108,821 | 1,126,388 | 1,914,958 | 146,234 | 739,298 | 4,035,699 |
| Depreciation | -12,594 | -388,192 | -1,293,581 | - | -470,840 | -2,165,207 |
| Impairment | -2,978 | -49,657 | -102,012 | -3,365 | -36,289 | -194,302 |
| Carrying amount at January 1, 2021 | 93,249 | 688,539 | 519,364 | 142,868 | 232,169 | 1,676,189 |
| Analysis of carrying amount at June 30, 2021 | ||||||
| Gross value | 111,785 | 1,154,334 | 1,978,827 | 129,286 | 749,808 | 4,124,040 |
| Depreciation | -13,638 | -420,624 | -1,353,275 | - | -498,867 | -2,286,404 |
| Impairment | -3,018 | -48,157 | -104,987 | -2,238 | -36,093 | -194,493 |
| Carrying amount at June 30, 2021 | 95,129 | 685,553 | 520,565 | 127,048 | 214,848 | 1,643,143 |
(*) "Tech. eq. & tool.": technical installations, equipment and tooling
Non-consolidated securities relate to shell companies, non-significant dormant companies and small stakes (Tactotek OY) for which changes in value are recognized in the income statement (IFRS 9 "Financial instruments"). Investments in associates and joint ventures correspond to investments by the Group in the following companies:
| In thousands of euros | 2021 % interest |
2020 % interest |
June 30, 2021 | December 31, 2020 |
|---|---|---|---|---|
| HBPO - SHB Automotive Modules(1) | 33.34% | 33.34% | 15,215 | 15,088 |
| JV Yanfeng Plastic Omnium and its subsidiaries - joint venture | 49.95% | 49.95% | 149,851 | 151,668 |
| B.P.O. AS - joint venture | 49.98% | 49.98% | 9,444 | 13,416 |
| EKPO Fuel Cell Technologies (2) | 40.00% | - | 97,268 | - |
| Total investments in associates and joint ventures | 271,778 | 180,172 | ||
| Other non-consolidated equity investments | 167 | 170 | ||
| Total non-consolidated equity investments | 167 | 170 | ||
| Total investments consolidated by the equity method and non consolidated equity instruments |
271,945 | 180,342 |
(1) This relates to the HBPO Joint venture.
(2) See Note 2.2.2.1 "Company acquisition and equity investment in the German group ElringKlinger AG" in the "Other significant events of the period" and Note 4.4 "Share of profit/(loss) of associates and joint ventures".
Investments in these entities include goodwill by segment for the following amounts:
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Goodwill in associates and joint ventures - Industries segment(1) | 79,411 | 21,080 |
| Goodwill in associates and joint ventures - Modules segment | 3,856 | 4,257 |
| Total goodwill in associates and joint ventures | 83,267 | 25,337 |
(1) The change over the period corresponds mainly to the recognition of the provisional goodwill on EKPO Fuel Cell Technologies for €57,880 thousand. See Note 2.2.2.1.2 in the "Other Significant events of the period".
The financial assets recognized under this item correspond to long-term investments in equities and funds as well as other assets such as deposits and surety bonds grouped as follows:
In the context of the application of IFRS 9 "Financial Instruments, the Group opted to recognize changes in the value of listed shares in non-recyclable profit and loss and changes in investments funds, such as "Aster", "Tactotek OY" and "FMEA" funds, in the income statement.
| In thousands of euros | June 30, 2021 | December 31, 2020 | ||||
|---|---|---|---|---|---|---|
| Subscribed amounts |
Non-called up amounts |
Net | Subscribed amounts |
Non-called up amounts |
Net | |
| Financial investments in the FMEA 2 fund (1) - (2) | 4,000 | -3,903 | 97 | 4,000 | -3,563 | 437 |
| Financial investments in listed securities(1) - (3) | 48,138 | - | 48,138 | - | - | - |
| Financial investments in the venture capital AP Ventures(1) - (4) | 28,548 | -22,470 | 6,078 | 26,896 | -22,986 | 3,910 |
| Investment in the venture capital company Aster(1) - (5) | 20,000 | -14,024 | 5,976 | 20,000 | -16,214 | 3,786 |
| Other(1) | - | - | 183 | - | - | 176 |
| Long-term investments in equities and funds | 60,472 | 8,309 |
(1) Financial investments in the FMEA 2 fund and investments in shares in listed companies are listed under long-term financial receivables in Note 5.2.5.6 "Reconciliation of gross and net financial debt".
The Group has committed up to \$30 million over the life of the fund.
(5) The Group received €0,3 million in income distribution (€1.0 million as of December 31, 2020) (recognized in the balance sheet over the term of the full payment of the amount subscribed).
| In thousands of euros | June 30, 2021 | June 30, 2020 |
|---|---|---|
| Loans | 1,445 | 1,488 |
| Deposits and surety bonds | 7,310 | 8,265 |
| Other receivables | 3 | - |
| Other non-current financial assets | 8,758 | 9,753 |
Deposits and surety bonds mainly concern deposits relating to leased offices and receivables sale programs.
| In thousands of euros | June 30, 2021 | December 31, 2020 | |
|---|---|---|---|
| Raw materials and supplies | |||
| At cost (gross) | 225,080 | 178,817 | |
| Net realizable value | 207,674 | 160,463 | |
| Molds, tooling and engineering | |||
| At cost (gross) | 405,849 | 359,196 | |
| Net realizable value | 396,806 | 350,811 | |
| Maintenance inventories | |||
| At cost (gross) | 77,126 | 74,207 | |
| Net realizable value | 59,988 | 58,234 | |
| Goods | |||
| At cost (gross) | 1,734 | 1,646 | |
| Net realizable value | 1,312 | 1,209 | |
| Semi-finished products | |||
| At cost (gross) | 58,668 | 54,466 | |
| Net realizable value | 54,699 | 50,357 | |
| Finished products | |||
| At cost (gross) | 41,436 | 39,831 | |
| Net realizable value | 37,764 | 35,738 | |
| Total net | 758,243 | 656,812 |
(2) The net value of FMEA 2 at each end of the period corresponds to the fair value of the Group's investments in the fund. Uncalled amounts include distributions of income as well as fair value adjustments.
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Current financial trade receivables (see Note 5.2.5.6) | 4,435 | 6,340 |
| Other current financial assets and financial receivables (see Note 5.2.5.6) | 320 | 301 |
| Total current financial receivables | 4,755 | 6,641 |
Compagnie Plastic Omnium SE and some of its European and United States subsidiaries have set up several commercial receivables sale programs with French financial institutions. These programs have an average maturity of more than two years.
These non-recourse programs transfer substantially all the risks to credit institutions and rewards of ownership to the buyer of the sold receivables; for these programs, only the non-material dilution risk is not transferred to the buyer.
Receivables sold under these programs, which are therefore no longer included in the balance sheet, totaled €307 million at June 30, 2021 versus €327 million at December 31, 2020.
5.1.8.2. Trade receivables – Gross values, impairment and carrying amounts
| June 30, 2021 | December 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|
| In thousands of euros | Gross value | Impairment | Carrying amount |
Gross value | Impairment | Carrying amount |
|
| Trade receivables | 828,201 | -12,016 | 816,184 | 824,214 | -9,814 | 814,400 |
The Group has not identified any significant non-provisioned customer risk over the two periods (see Note 6.2.1 "Customer risk").
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Sundry receivables | 111,287 | 89,031 |
| Prepayments to suppliers of tooling and prepaid development costs | 16,051 | 26,529 |
| Income tax receivables | 83,126 | 94,722 |
| Other tax receivables | 98,125 | 96,242 |
| Employee advances | 8,150 | 3,310 |
| Prepayments to suppliers of non-current assets | 5,681 | 8,473 |
| Other receivables | 322,420 | 318,307 |
| In thousands of currency units | June 30, 2021 | December 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| Local currency | Euro | % | Local currency | Euro 500,699 320,624 139,638 66,705 105,041 1,132,707 814,400 |
% | |||
| EUR | Euro | 569,518 | 569,518 | 50% | 500,699 | 44% | ||
| USD | US dollar | 348,273 | 293,060 | 26% | 393,438 | 28% | ||
| CNY | Chinese yuan | 1,008,289 | 131,387 | 12% | 1,120,250 | 12% | ||
| GBP | Pound sterling | 41,019 | 47,805 | 4% | 59,970 | 6% | ||
| Other | Other currencies | 96,834 | 9% | 9% | ||||
| Total | 1,138,604 | 100% | 100% | |||||
| Of which: | ||||||||
| ● Trade receivables | 816,184 | 72% | 72% | |||||
| ● Other receivables | 322,420 | 28% | 318,307 | 28% |
| In thousands of euros | June 30, 2021 | December 31, 2020 | June 30, 2020 |
|---|---|---|---|
| Cash at banks and in hand | 612,740 | 827,196 | 567,448 |
| Short-term deposits | 23,094 | 2,794 | 63,562 |
| Total cash and cash equivalents on the balance sheet | 635,834 | 829,989 | 631,010 |
Cash and cash equivalents break down as follows:
| In thousands of euros | June 30, 2021 | December 31, 2020 | June 30, 2020 |
|---|---|---|---|
| Cash and cash equivalents of the Group's captive reinsurance company | 13,507 | 62,926 | 12,132 |
| Cash and cash equivalents in countries with exchange controls (1) | 64,059 | 44,792 | 42,212 |
| Available cash | 558,268 | 722,272 | 576,666 |
| Total cash and cash equivalents on the balance sheet | 635,834 | 829,989 | 631,010 |
(1) "Countries with exchange controls" include Brazil, China, India, Chile, Argentina, South Korea & Malaysia.
The different categories of the above table are presented on the balance sheet under current assets in the absence of any general restriction on these amounts.
| In thousands of euros | June 30, 2021 | December 31, 2020 | June 30, 2020 |
|---|---|---|---|
| Cash and cash equivalents | 635,834 | 829,989 | 631,010 |
| Short-term bank loans and overdrafts | -8,859 | -12,277 | -7,852 |
| Net cash and cash equivalents in the statement of cash flows | 626,975 | 817,712 | 623,158 |
5.1.10.1 Acquisitions of equity interests, non-controlling interests and related investments
The Group's financial acquisitions are as follows:
These are recorded under "Financial transactions" in the statement of cash flows.
The amount of -€43.5 million in "Acquisitions of shares in consolidated companies and takeovers" corresponds to the amounts paid out for the acquisition of a 40% stake in the company EKPO Fuel Cell Technologies and the acquisition of Plastic Omnium New Energies Wels GmbH during the half-year.
The Plastic Omnium Group has undertaken to pay, according to a contractual schedule, an amount of €70 million by September 2024 corresponding to the remaining balance of the purchase price of the shares. See the detail in Note 2.2.2.1.1 "The purchase price allocation" under "Other significant events of the period". The total value of the shares acquired therefore amounts to €113.5 million.
Plastic Omnium New Energies Wels GmbH contributed to €373 thousand of cash included in the opening balance sheet.
The amount of -€0.8 million under "Acquisitions of equity interests of consolidated companies and takeovers" corresponded to the acquisition during the fiscal year 2020 of an 11% equity interest in Hicom for €0.8 million with a cash contribution of €1.4 million.
None.
5.1.11 Impact of dividends paid in the statement of cash flows
In the first-half 2021, the dividend paid by Compagnie Plastic Omnium SE to shareholders other than Burelle SA amounted to €28,499 thousand (compared to €28,443 thousand in 2020), bringing the total amount of the dividend thus paid by Compagnie Plastic Omnium SE to €71,287 thousand (compared to €71,221 thousand in the first-half 2020).
See the corresponding amount in the Changes in shareholders' equity and in Note 5.2.2 "Dividends approved and paid by Compagnie Plastic Omnium SE".
The amount of dividends of the other Group companies, voted and approved, amounted to €10,821 thousand as of June 30, 2021 (compared to €16,550 thousand at June 30, 2020) and is shown in the Statement of Changes in Shareholders' Equity.
The amount of dividends paid by the other Group companies, shown in the Statement of Cash Flows at June 30, 2021, amounted to €40,009 thousand (compared to €44,983 thousand at June 30, 2020).
The difference in the Statement of Changes in Shareholders' Equity and the Statement of Cash Flows in the firsthalf 2021 corresponds to the dividend approved but not yet paid to the non-controlling interests of a Group subsidiary for an amount of €0.7 million (nil in the first-half 2020).
The share capital of Compagnie Plastic Omnium was reduced by 0.97% compared to December 31, 2020. See Note 2.2.1 "Changes in the share capital of Compagnie Plastic Omnium SE" under "Other significant events of the period".
| In euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Share capital at January 1 of the period | 8,913,966 | 8,913,966 |
| Capital reduction during the period | -86,637 | - |
| Share capital at end of period, made up of ordinary shares with a per value of €0.06 each over the two periods |
8,827,329 | 8,913,966 |
| Treasury stock | 100,436 | 170,054 |
| Total share capital net of treasury stock | 8,726,893 | 8,743,912 |
Voting rights of the main shareholder Burelle SA over the reference periods:
| June 30, 2021 | December 31, 2020 | |
|---|---|---|
| Voting rights of Burelle SA | 73.28% | 72.77% |
Shares registered on behalf of the same holder for at least two years shall have double voting rights.
The 400,000 Plastic Omnium shares acquired by Burelle SA during the first-quarter of 2019, have since the end of March 2021 earned double voting rights, increasing Burelle SA voting rights to 73.28% in 2021.
At June 30, 2021, the share capital of Compagnie Plastic Omnium was reduced by 1,443,954 shares with a par value of €0.06 compared to December 31, 2020, bringing the total number of shares comprising the share capital to 147,122,153 shares.
Treasury shares amounted to 1,673,937 shares, i.e. 1.14 % of the share capital, compared to 2,834,235 shares, i.e. 1.91% of the share capital at December 31, 2020.
At December 31, 2020, Compagnie Plastic Omnium's share capital was made up of shares with a par value of €0.06 bringing the Company's share capital to €8,913,966.42, with 2,834,235 treasury shares, representing 1.91% of the share capital, compared with 2,388,499 shares, representing 1.61% of the share capital at December 31, 2019.
5.2.1.2 Breakdown of "Other reserves" in the consolidated statement of changes in equity
| In thousands of euros | Actuarial gains/(losses) relating to defined benefit plans |
Cash flow hedges – interest rate instruments |
Cash flow hedges – currency instruments |
Fair value adjustments |
Retained earnings and other reserves |
Attributable to owners of the parent |
|---|---|---|---|---|---|---|
| At January 1, 2020 | -62,220 | -1,554 | -2,107 | 28,894 | 2,081,762 | 2,044,775 |
| Movements in First-half 2020 | -8,148 | 130 | 2,081 | -752 | 191,354 | 184,665 |
| At June 30, 2020 | -70,368 | -1,424 | -26 | 28,142 | 2,273,116 | 2,229,440 |
| Movements in second-half 2020 | 5,296 | 35 | 37 | -3,279 | 6,433 | 8,522 |
| At December 31, 2020 | -65,072 | -1,389 | 11 | 24,863 | 2,279,549 | 2,237,962 |
| Movements in First-half 2021 | 11,574 | 98 | 164 | 2,983 | -353,766 | -338,947 |
| At June 30, 2021 | -53,498 | -1,291 | 175 | 27,846 | 1,925,783 | 1,899,015 |
5.2.1.3 Breakdown of "Changes in the scope of consolidation and reserves" in the "Consolidated statement of changes in equity"
| In thousands of euros | Shareholders' equity Attributable to Attributable to non owners of the controlling interests parent |
Total shareholders' equity |
|---|---|---|
| Takeover of HBPO Hicom with consolidation of minority interests | - 1,157 |
1,157 |
| Changes in the scope of consolidation at second half 2020 | - 1,157 |
1,157 |
| Amounts in thousands of euros Dividends per share in euros |
June 30, 2021 | June 30, 2020 | |||
|---|---|---|---|---|---|
| Number of shares in units | Number of shares in 2020 |
Dividend | Number of shares in 2019 |
Dividend | |
| Dividends per share (in euros) | 0.49 (1) |
0.49 (1) |
|||
| Total number of shares outstanding on the dividend payment date | 147,122,153 (2) |
148,566,107 | |||
| Total number of shares outstanding at the end of the previous year | 148,566,107 | 148,566,107 | |||
| Total number of shares held in treasury on the dividend payment date | 1,637,740 (3) |
3,216,987 (2) |
|||
| Total number of shares held in treasury at year-end (for information) | 2,834,235 (3) |
2,388,499 (2) |
|||
| Dividends on ordinary shares | 72,090 | 72,797 | |||
| Dividends on treasury stock (unpaid) | -803 (2) |
-1,576 (2) |
|||
| Total net dividends | 71,287 | 71,221 |
At December 31, 2020: 2,388,499 treasury shares were taken into account at December 31, 2019 to determine the provisional total dividend. The number of treasury shares at the time of the dividend's payment during the first-half 2020 increased to 3,216,987 shares, increasing the dividends attached to these shares from €1,170 thousand to €1,576 thousand.
Plan of April 23, 2021:
A performance share grant was awarded by the Board of Directors of February 17, 2021, to Executive Corporate Officers of Compagnie Plastic Omnium, with a four-year vesting period ending on April 23, 2025.
The main assumptions used for the valuation of the new 2021 Plan using the principles of IFRS 2 were as follows:
| Valuation of April 23, 2021 plan | Valuation of the number of shares awarded and valuation on April, 23, 2021 |
||||
|---|---|---|---|---|---|
| In euros In units for the number of shares |
Initial | Renunciations during the 1st half of 2021 |
Final positions | ||
| Number of shares allocated to the performance share plan | 45,947 shares | 0 share | 45,947 shares | ||
| Market conditions | Not subject to market conditions | ||||
| Plastic Omnium share price at the performance plan on the award date | €29.88 | ||||
| Average value of one share | €27.92 | ||||
| Number of shares to be awarded after application of an employee turnover rate | N/A at June 30, 2021 | ||||
| Estimated overall cost of the plan on the award date of allocation - (Accounting expense with adjustment to reserves) |
€1,286,516 |
The overall cost of the plan was valued at the time of its implementation for the June 30, 2021 financial statements. The overall expense amounts to €1,286,516, amortized on a straight-line basis over the vesting period of four years of which €60,718 at June 30, 2021 (for an annual expense of €222,632).
The performance share plan is subject to a 20% social security contribution for the employer, as a French subsidiary. This contribution is due the month following the date of vesting by the beneficiary, i.e. in May 2025. It is subject to a provision, calculated on the nominal value of the shares according to the market price of the award date, spread over the term of the plan, i.e. four years. As of June 30, 2021, the provision for accrued expenses in this regard, amounted to €11 thousand.
| In thousands of euros | December 31, 2020 |
Allocations | Utilizations | Releases of surplus provisions |
Reclassifi cations |
Actuarial gains/(losses) |
Translation adjustment |
June 30, 2021 |
|---|---|---|---|---|---|---|---|---|
| Customer warranties | 28,713 | 14,524 | -6,175 | -3,835 | -256 | - | 91 | 33,062 |
| Reorganization plans(1) | 48,266 | 1,735 | -13,291 | -40 | - | - | -2 | 36,668 |
| Provisions for taxes and tax risks |
954 | 936 | -442 | - | - | - | 66 | 1,514 |
| Contract risks | 22,262 | 6,253 | -5,733 | -3,560 | -84 | - | 172 | 19,310 |
| Provisions for claims and litigation(2) |
11,269 | 645 | -668 | -588 | - | - | 196 | 10,854 |
| Other | 7,348 | 3,059 | -1,161 | -106 | -166 | - | -26 | 8,948 |
| Provisions | 118,814 | 27,152 | -27,470 | -8,129 - | -506 | - | 497 | 110,358 |
| Provisions for pensions and other post employment benefits |
100,331 | 3,950 | -5,141 (3) | - | 2 | -15,396 (4) | 691 | 84,437 |
| TOTAL | 219,145 | 31,102 | -32,611 | -8,129 | -504 | -15,396 | 1,188 | 194,795 |
(1) Provisions for reorganization relate primarily to significant restructuring in the « Industries » segment in Germany and in Belgium.
(2) This item mainly corresponds to recall with several OEMs unrelated to the Covid-19 crisis.
(3) The change over the period includes in particular a reversal of the provision for an amount of €3.7 million, related to the planned termination of the employees' employment contract in the context of the transfer in France of the activity of the Deltatech innovation and research center.
See Notes 2.2.4 in "Other significant events of the period" and 4.5 "Other operating income and expenses".
(4) The decrease of the provisions for pension and retirement is also due to the actuarial difference during the period was mainly explained by the increase of the discount rate in the two main regions i.e. Europe (from 0.35% to 0.90%) and the United States (from 2.46% to 3.04%) over the period.
| In thousands of euros | December 31, 2019 |
Allocations | Utilizations | Releases of surplus provisions |
Reclassifi cations |
Actuarial gains/(losses) |
Translation adjustment |
December 31, 2020 |
|---|---|---|---|---|---|---|---|---|
| Customer warranties | 33,974 | 11,662 | -8,806 | -7,670 | 42 | - | -489 | 28,713 |
| Reorganization plans(1) | 31,015 | 26,827 | -8,875 | -310 | -338 | - | -53 | 48,266 |
| Provisions for taxes and tax risks |
804 | 224 | -74 | - | - | - | - | 954 |
| Contract risks(2) | 20,113 | 16,267 | -9,919 | -4,176 | 127 | - | -150 | 22,262 |
| Provisions for claims and litigation |
7,964 | 4,881 | -1,157 | -122 | 427 | - | -724 | 11,269 |
| Other | 6,460 | 2,976 | -1,265 | -237 | -384 | - | -203 | 7,348 |
| Provisions | 100,332 | 62,837 | -30,096 | -12,515 | -126 | - | -1,619 | 118,814 |
| Provisions for pensions and other post employment benefits |
107,670 | -2,153 | -5,774 | - | - | 3,659 (3) | -3,071 | 100,331 |
| TOTAL | 208,002 | 60,684 | -35,870 | -12,515 | -126 | 3,659 | -4,690 | 219,145 |
(1) Provisions for reorganization related primarily to significant restructuring in the « Industries » segment in Germany and in Belgium.
(2) The increase during the period corresponded to operating disputes unrelated to the Covid-19 crisis and labor disputes.
(3) The increase of the actuarial difference during the period was mainly explained by the decrease of the discount rate in the two main regions i.e. Europe (decrease from 0.75% to 0.35%) and the United States (decrease from 3.20% to 2.46%) over the period.
Net debt is an important notion for the day-to-day management of Plastic Omnium's treasury cash. It is used to determine the Group's debit or credit position in relation to third parties and outside of the operating cycle. Net debt is determined as:
The main terms of the bonds and private placements as at June 30, 2021 are summarized in the following table:
| June 30, 2021 | "Schuldscheindarlehen" private placement of 2016 |
Private placement bond issue of June 2017 |
"Schuldscheindarlehen" private placement of December 21, 2018 |
|
|---|---|---|---|---|
| Issue - Fixed rate (in euros) |
300,000,000 | 500,000,000 | 300,000,000 | |
| Interest rate / annual coupon | 1.478% | 1.25% | 1.6320% | |
| Investors | International (Asian, German, Dutch, Swiss, Luxembourg, Belgian) and French investors |
International (German, Chinese, Belgian, Swiss, Austrian) and French investors |
||
| No covenant or rating obligations | ||||
| Maturity | June 17, 2023 | June 26, 2024 | December 21, 2025 |
The Group has not made any new drawdowns in the first-half 2021 compared to December 31, 2020. It retains the same lines as those negotiated on December 31, 2020.
See Note 2.2.5.1 in "Other significant events of the period".
5.2.5.4. Short-term borrowings: issuance of Negotiable European commercial paper (Neu-CP)
The Group reduced its issuance of Negotiable European Commercial Paper (Neu-CP) in the first-half 2021. The characteristics are presented in the table below:
| June 30, 2021 | Neu-CP during the period |
|---|---|
| Issuance - fixed rate in euros |
100,500,000 |
| Characteristics | European investors |
| Maturity | Less than 1 year |
At June 30, 2021, the Group benefits from several confirmed bank credit lines whose amount exceeds the Group's needs.
At June 30, 2021, these confirmed bank lines of credit amounted to €1,960 million as at December 31, 2020. The average maturity is less than four years at June 30, 2021 compared to five years at December 31, 2020.
5.2.5.6 Reconciliation of gross and net financial debt
| In thousands of euros | June 30, 2021 | December 31, 2020 | ||||
|---|---|---|---|---|---|---|
| Total | Current portion | Non-current portion |
Total | Current portion | Non-current portion |
|
| Finance lease liabilities (1) (2) | 211,434 | 48,542 | 162,892 | 222,013 | 48,330 | 173,683 |
| Bonds and bank loans | 1,306,223 | 196,687 | 1,109,536 | 1,434,828 | 300,830 | 1,133,998 |
| of which the 2018 "Schuldscheindarlehen" private placement |
301,615 | 2,575 | 299,040 | 299,120 | 148 | 298,972 |
| of which the bond issue in 2017 | 497,621 | 87 | 497,534 | 500,375 | 3,238 | 497,137 |
| of which the 2016 "Schuldschein" private placement | 299,719 | 170 | 299,549 | 301,843 | 2,405 | 299,438 |
| of which Neu-CP(3) | 100,500 | 100,500 | - | 200,500 | 200,500 | - |
| of which bank lines of credit (4) | 106,768 | 93,355 | 13,413 | 132,990 | 94,539 | 38,451 |
| Current and non-current borrowings and other debt (+) | 1,517,657 | 245,229 | 1,272,428 | 1,656,841 | 349,160 | 1,307,681 |
| Other current and non-current debt related to EKPO investment stake (+)(5) |
70,000 | 30,000 | 40,000 | - | - | - |
| Hedging instruments - liabilities (+)(6) | 4,032 | 4,032 | 116 | 116 | ||
| Total borrowings (B) | 1,591,689 | 279,261 | 1,312,428 | 1,656,957 | 349,276 | 1,307,681 |
| Long-term investments in equity instruments and funds (-) (7) |
-60,472 | -60,472 | -8,309 | -8,309 | ||
| Other financial assets (-) | -13,193 | -4,435 | -8,758 | -16,093 | -6,340 | -9,753 |
| of which non-current financial receivables (8) | -8,758 | -8,758 | -9,753 | -9,753 | ||
| of which finance receivables (8) (9) | -4,435 | -4,435 | - | -6,340 | -6,340 | - |
| Other current financial assets and financial receivables (-) (9) |
-320 | -320 | -301 | -301 | ||
| Hedging instruments - assets (-) (6) |
-1,201 | -1,201 | -7,625 | -7,625 | ||
| Total financial receivables (C) | -75,187 | -5,956 | -69,231 | -32,328 | -14,266 | -18,062 |
| a | ||||||
| Gross debt (D) = (B) + (C) | 1,516,502 | 273,305 | 1,243,197 | 1,624,629 | 335,010 | 1,289,619 |
| Cash and cash equivalents (-) (10) |
635,834 | 635,834 | 829,989 | 829,989 | ||
| Short-term bank loans and overdrafts (+) | -8,859 | -8,859 | -12,277 | -12,277 | ||
| Net cash and cash equivalents as recorded in the statement of cash flows (A) (11) |
-626,975 | -626,975 | -817,712 | -817,712 | ||
| NET FINANCIAL DEBT (E) = (D) + (A) | 889,527 | -353,670 | 1,243,197 | 806,917 | -482,702 | 1,289,619 |
(1) During the first-half 2021, the change of net debt from lease contracts amounted to -€13.7 million, including +€16.9 million increase related to new contracts and -€30.6 million related to repayment on active assets contracts versus a change of net debt of -€4.1 million during the firsthalf 2020 (+€34.0 million on new contracts and -€38.1 million in repayments on active contracts).
(2) At June 30, 2021, the position includes a total amount of €1,376 thousand (of which €1,218 thousand in non-current and €158 thousand in current) contributed by Plastic Omnium New Energies Wels GmbH in its opening balance sheet. See Note 2.2.2.1.3 in the "Other significant events of the period".
(3) See Note 5.2.5.4 "Short-term borrowings: issuance of "Negotiable European Commercial Paper" (Neu-CP)"
(4) See Notes 2.2.5.1 in the "Other significant events of the period" , 5.2.5.3 "Bank loans" and 5.2.5.5 "Confirmed medium-term credit lines"
(5) See Note 2.2.2.1.1 "The acquisition prices" in "Other significant events of the period"
The table below shows the gross financial debt after taking into account the swap transactions that allowed the conversion from euros into foreign currency.
| As a % of total debt | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Euro | 58% | 48% |
| US dollar | 28% | 39% |
| Chinese yuan | 7% | 7% |
| Pound sterling | 2% | 2% |
| Japanese yen | 2% | - |
| Brazilian real | 1% | 1% |
| Indian rupee | 1% | 1% |
| Polish zloty | - | 1% |
| Other currencies(1) | 1% | 1% |
| Total | 100% | 100% |
(1) "Other currencies" concerns various currencies, which taken individually account for less than 1% of total financial debt
| As a % of total debt | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Hedged variable rates | - | - |
| Unhedged variable rates | 17% | 19% |
| Fixed rates | 83% | 81% |
| Total | 100% | 100% |
The Group doesn't have interest rate contract.
| June 30, 2021 | December 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|
| In thousands of euros | Assets | Liabilities | Assets | Liabilities | |||
| Exchange rate derivatives | 1,201 | -4,032 | 7,625 | -116 | |||
| Total balance sheet | 1,201 | -4,032 | 7,625 | -116 |
The Group uses derivatives to hedge its exposure to currency risk.
The Group has chosen a hedging policy to cover the highly probable future transactions in its entities' foreign currencies. Hedging instruments implemented in this respect are forward purchases of foreign currencies. The Group has applied to these instruments the accounting treatment of cash flow hedges as provided for in the applicable IFRS standard: instruments are measured at fair value and changes in value are recognized in equity for the effective portion. These amounts recognized in equity are reported in profit or loss when the hedged cash flows affect income.
At June 30, 2021, the fair value of the instruments subscribed and thus recognized was -€2,831 thousand, including €304 thousand recognized in equity.
Changes in the fair value of currency hedging instruments are recognized in net financial income.
| June 30, 2021 | December 31, 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Fair value (in |
Notional amount (in thousands |
Medium term exchange rate |
Exchange rate at June 30, 2021 |
Fair value (in |
Notional amount (in thousands |
Medium term exchange rate |
Exchange rate at December 31, 2020 |
||||
| thousands of euros) |
of currency units) |
Currency / Euro |
Currency / Euro |
thousands of euros) |
of currency units) |
Currency / Euro |
Currency / Euro |
||||
| Net sell position (net buy position if >0) | |||||||||||
| USD / EUR - Forward exchange contract | +1,035 | -105,885 | 1.1769 | 1.1884 | +91 | -1,922 | 1.1667 | 1.2271 | |||
| GBP / EUR - Forward exchange contract | -197 | -2,973 | 0.9134 | 0.8581 | -8 | -3,952 | 0.9050 | 0.8990 | |||
| PLN / EUR - Forward exchange contract | +150 | +90,000 | 4.5614 | 4.5201 | - | - | - | - | |||
| USD / EUR - Forward currency swap | -2,704 | -478,300 | 1.1971 | 1.1884 | +5,868 | -529,300 | 1.2110 | 1.2271 | |||
| GBP / EUR - Forward currency swap | -1 | -6,200 | 0.8582 | 0.8581 | +14 | -30,000 | 0.8987 | 0.8990 | |||
| CHF / EUR - Forward currency swap | +16 | -10,700 | 1.0959 | 1.0980 | -43 | -9,750 | 1.0851 | 1.0802 | |||
| RUB / EUR - Forward currency swap | - | -44,000 | 87.1685 | 86.7725 | +18 | -58,100 | 89.1435 | 91.4671 | |||
| CNY / EUR - Forward currency swap | -962 | -390,000 | 7.8710 | 7.6742 | +1,232 | -438,000 | 7.9219 | 8.0225 | |||
| CNY / USD - Forward currency swap | -17 | -86,530 | 6.5060 | 6.4576 | -42 | -87,707 | 6.5945 | 6.9760 | |||
| JPY / EUR - Forward currency swap | -151 | - 2,400,000 |
132.5235 | 131.4300 | +379 | - 3,600,00 0 |
124.8294 | 126.4900 | |||
| TOTAL | -2,831 | +7,509 |
5.2.6.1.2. Impact of unsettled foreign exchange hedges on income and equity
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Impact of change in foreign exchange hedging portfolio on income (ineffective portion)(1) | -10,561 | 2,893 |
| Impact of change in foreign currency hedging portfolio on equity (effective portion) | 221 | 2,855 |
| Total | -10,340 | 5,748 |
(1) See "Gains or losses on interest rate and currency hedges" in Note 4.6 "Net financial income".
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Trade payables | 1,227,910 | 1,278,933 |
| Due to suppliers of fixed assets | 59,101 | 92,817 |
| Total | 1,287,011 | 1,371,750 |
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Employee benefits expense | 179,274 | 164,095 |
| Income taxes | 29,550 | 17,888 |
| Other taxes | 141,327 | 128,337 |
| Other payables | 331,425 | 328,378 |
| Customer prepayments - Deferred revenues | 376,414 | 319,711 |
| Total | 1,057,990 | 958,409 |
5.2.7.3. Trade payables and other operating liabilities by currency
| In thousands of currency units | Liabilities at June 30, 2021 | Liabilities at December 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| Local currency | Euro | % | Local currency |
Euro | % | |||
| EUR | Euro | 1,366,358 | 1,366,358 | 58% | 1,354,833 | 1,354,833 | 58% | |
| USD | US dollar | 565,445 | 475,803 | 20% | 595,983 | 485,684 | 21% | |
| GBP | Pound sterling | 113,638 | 132,438 | 6% | 115,655 | 128,644 | 6% | |
| CNY | Chinese yuan | 1,266,165 | 164,990 | 7% | 1,296,548 | 161,614 | 7% | |
| BRL | Brazilian real | 201,662 | 34,151 | 1% | 161,472 | 25,335 | 1% | |
| Other | Other currencies | 171,261 | 7% | 174,049 | 7% | |||
| Total | 2,345,001 | 100% | 2,330,159 | 100% | ||||
| Of which: | ||||||||
| ● Trade payables | 1,287,011 | 55% | 1,371,750 | 59% | ||||
| ● Other operating liabilities | 1,057,990 | 45% | 958,409 | 41% |
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 Management.
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.
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.
Changes in the financial arrangements made by the Group in 2020 to face the impacts of the Covid-19 pandemic are presented in Note 2.2.5 "Financing transactions" in "Significant events of the period". See also Notes 5.2.5.5 "Confirmed medium-term credit lines" and 5.2.5.4 "Short-term borrowings: issuance of Negotiable European commercial paper (Neu-CP)".
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.
At June 30, 2021 and December 31, 2020, gearing was as follows:
| In thousands of euros | June 30, 2021 | December 31, 2020 |
|---|---|---|
| Net financial debt(1) | 889,527 | 806,917 |
| Equity (including non-current grants) | 2,041,069 | 1,950,069 |
| Gearing ratio | 43.58% | 41.38% |
(1) See Note 5.2.5.6 "Reconciliation of gross and net financial debt".
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.
Credit risk covers customer credit risk and bank counterparty risk.
At June 30, 2021, 6.6% of the Group's trade receivables were past due, versus 3.8% at December 31, 2020. Trade receivables break down as follows:
| In thousands of euros | Total outstanding |
Not yet due | Due and past due |
Less than 1 month |
1-6 months |
6-12 months | >12 mois |
|---|---|---|---|---|---|---|---|
| Industries | 639,758 | 586,011 | 53,747 | 42,286 | 6,844 | 1,307 | 3,310 |
| Modules | 177,979 | 177,559 | 420 | 158 | 262 | - | - |
| Unallocated items | -1,553 | -1,553 | - | - | - | - | - |
| Total | 816,184 | 762,017 | 54,167 | 42,444 | 7,106 | 1,307 | 3,310 |
| In thousands of euros | Total outstanding |
Not yet due | Due and past due |
Less than 1 month |
1-6 months |
6-12 months | More than 12 months |
|---|---|---|---|---|---|---|---|
| Industries | 632,522 | 602,093 | 30,428 | 17,780 | 5,789 | 5,643 | 1,216 |
| Modules | 183,384 | 182,668 | 717 | 275 | 442 | - | - |
| Unallocated items | -1,506 | -1,506 | - | - | - | - | - |
| Total | 814,400 | 783,255 | 31,145 | 18,055 | 6,231 | 5,643 | 1,216 |
The risk of non-recovery of trade receivables is low and involves only an immaterial amount of receivables more than twelve months past due. The necessary depreciation of receivables is recognized when a risk of non-recovery is identified (see Note 5.1.8.2).
The Group invests its cash surplus with leading banks and/or in highly-rated securities.
The Group must at all times have sufficient financial resources to finance the current business and the investments required to support its development, but also to withstand any exceptional events.
This objective is mainly achieved by using medium-term lines of credit with banking institutions but also by shortterm bank resources.
The cash position of the Group is monitored daily for each business division and at central level, and a weekly summary report is submitted to the Group's Senior Management.
| In thousands of euros | June 30, 2021 | Less than 1 year |
1 to 5 years | More than 5 years |
|
|---|---|---|---|---|---|
| FINANCIAL LIABILITIES | |||||
| Non-current borrowings (1) | 1,347,465 | - | 1,291,582 | 55,883 | |
| Bank overdrafts | 8,859 | 8,859 | - | - | |
| Current borrowings (2) | 295,593 | 295,593 | - | - | |
| Hedging instruments | 4,032 | 4,032 | - | - | |
| Trade payables | 1,287,011 | 1,287,011 | - | - | |
| Total financial liabilities | 2,942,960 | 1,595,495 | 1,291,582 | 55,883 |
| In thousands of euros December 31, 2020 |
Less than 1 year | 1 to 5 years | ||
|---|---|---|---|---|
| FINANCIAL LIABILITIES | ||||
| Non-current borrowings (1) | 1,357,663 | - | 1,295,567 | 62,096 |
| Bank overdrafts | 12,277 | 12,277 | - | - |
| Current borrowings (2) | 371,844 | 371,844 | - | - |
| Hedging instruments | 116 | 116 | - | - |
| Trade payables | 1,371,750 | 1,371,750 | - | - |
| Total financial liabilities | 3,113,650 | 1,755,987 | 1,295,567 | 62,096 |
(1) "Non-current borrowings" includes the amounts reported in the balance sheet and interest payable over the remaining life of the borrowings.
(2) "Current borrowings" includes the amounts reported in the balance sheet and interest due within one year.
Burelle SA holds 60.04% of Compagnie Plastic Omnium, after the cancellation of Compagnie Plastic Omnium SE's treasury shares (59.35% before cancellation of treasury shares), and fully consolidates Company Plastic Omnium SE.
Burelle SA - 19 Boulevard Jules Carteret 69342 Lyon Cedex 07
No event likely to have a material impact on the Group's business, financial position, earnings or assets and liabilities at June 30, 2021 has occurred since the closing date.
Except the creation of the entity Plastic Omnium New Energies France, the acquisition of the the Austrian entity "Plastic Omnium New Energies Wels GmbH" and the stake in the German company "EKPO Fuel Cell Technologies", the scope of consolidation remained unchanged since December 31, 2020.
FC:Full consolidation
EM_IFRS: Companies consolidated by the equity method since the application of the new consolidation standards at January 1, 2014
a2021 :Companies acquired or created during first-half 2021
| Reportable segment | June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Legal name | Indust ries |
Modul es |
Un- allocat ed |
Method of Consolidati on |
% control |
% interest |
Method of Consolidati on |
% control |
% interest |
Method of Consolidati on |
% control |
% interest |
|
| France PLASTIC OMNIUM NEW ENERGIES France |
a2021 | * | FC | 100 | 100 | - | - | - | - | - | - | ||
| Germany EKPO FUEL CELL TECHNOLOGIES |
a2021 | * | EM_Ifrs | 40 | 40 | - | - | - | - | - | - | ||
| Austria PLASTIC OMNIUM NEW ENERGIES WELS GmbH |
a2021 | * | FC | 100 | 100 | - | - | - | - | - | - |
This is a free translation into English of the statutory auditors' report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in the Group's half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France
Period from January 1st to June 30th, 2021
ERNST & YOUNG et Autres MAZARS
Tour First – TSA 14444 92037 Paris-La Défense Cedex S.A.S. à capital variable
Commissaire aux Comptes Membre de la compagnie régionale de Versailles et du Centre
61, rue Henri Regnault 92075 Paris-La Défense Cedex S.A. au capital de € 8.320.000
Société Anonyme d'Expertise Comptable et de Commissariat aux Comptes à Directoire et Conseil de Surveillance
Compagnie Plastic Omnium SE Period from January 1st to June 30th, 2021
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:
Due to the global crisis related to the Covid-19 pandemic, the condensed half-yearly consolidated financial statements of this period have been prepared and reviewed under specific conditions. Indeed, this crisis and the exceptional measures taken in the context of the state of sanitary emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties on their future prospects. Those measures, such as travel restrictions and remote working, have also had an impact on the companies' internal organization and the performance of our procedures.
These condensed half-yearly consolidated financial statements are the responsibility of the Management Board on July 20, 2021. Our role is to express a conclusion on these financial statements based on our review.
We conducted our review in accordance with professional standards applicable in France.
A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 – standard of the IFRSs as adopted by the European Union applicable to interim financial information.
We have also verified the information presented in the half-yearly management report on the condensed half-yearly consolidated financial statements subject to our review prepared on July 20th, 2021.
We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.
Paris-La Défense, July 21th, 2021
The Statutory Auditors French original signed by
MAZARS ERNST & YOUNG et Autres
Juliette Decoux May Kassis-Morin
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