Compagnie Plastic Omnium SE

Annual / Quarterly Financial Statement • Feb 22, 2023

CONSOLIDATED FINANCIAL STATEMENTS 2022

PREAMBLE TO THE CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL INDICATORS

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 to the consolidated financial statements at December 31, 2022, 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 Korean leader in front‑end modules, BPO, a major player in the Turkish market for exterior equipment, and EKPO, Fuel Cell Technologies, specializing in the development and mass production of fuel cell stacks for hydrogen mobility.

The Industries segment in 2022 includes Intelligent Exterior Systems (IES), Clean Energy Systems (CES), New Energies (NE), PO Lighting Systems (POLS) and e‑Power (formerly Actia Power and the Battery packs division).

The Modules segment in 2022 corresponds to the module design, development and assembly (HBPO).

RECONCILIATION OF ECONOMIC REVENUE WITH CONSOLIDATED REVENUE

In thousands of euros	2022	2021
ECONOMIC REVENUE	9,476,889	8,017,155
Including revenue from joint ventures at the Group's percentage stake	938,779	783,844
CONSOLIDATED REVENUE	8,538,110	7,233,311

Comments on the fiscal year and outlook

5.1 COMMENTS ON THE FISCAL YEAR AND OUTLOOK

5.1.1 COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS

In millions of euros	2021	2022	Change
Economic revenue	8,017	9,477	+18.2%
Consolidated revenue	7,233	8,538	+18.0%
Operating margin % of consolidated revenue	303 4.2%	364 4.3%	+€61M +0.1 pt
Net profit (loss) – Attributable to owners of the parent	126	168	+€42M
EBITDA % of consolidated revenue	771 10.7%	864 10.1%	+€93M -0.6 pt
Net investments	294	351	+€57M
Free cash‑flow	251	243	-€8M
Net debt at 12/31	854	1,669	+€815M
Net debt/equity and quasi‑equity	41%	86%	+45 pts
Net debt/EBITDA	1.1	1.9	+0.8
The figures above should be read in conjunction with the consolidated financial statements for more details.

In 2022, Plastic Omnium achieved strong profitable growth generating free cash‑flow in a market context disrupted by rising inflation and production chain stoppages related to the continuing shortage of semiconductors, the war in Ukraine and the health situation in China.

In the first half of 2022, Plastic Omnium reported economic revenue growth of 4.3% compared to the first half of 2021, despite worlwide automotive production down -0.5%. Flexibility and adaptation measures were strengthened to absorb all of the phenomena indicated above. As a result, the Group's operating margin amounted to €179 million in the first half of 2022, i.e. 4.6% of revenue, down compared to the 1st half of 2021, which had benefited from a strong recovery in production after pandemic‑related closures.

In the second half of 2022, the market saw the beginning of a recovery in

production volumes despite the continuing supply chain difficulties at carmakers. Inflation reached levels that have not been observed for several decades. In addition, Plastic Omnium completed the acquisition of three companies (AMLS Osram, Actia Power and Varroc Lighting Systems), which were consolidated prorata temporis over the period, as well as the purchase of the final third of the HBPO shares held by Hella, to gain full ownership.

In this context, the Group recorded a strong increase in its economic revenue (+33%) compared to the 2nd half of 2021, outperforming worldwide automotive production. The operating margin increased from 2.0% in the 2nd half of 2021 to 4.0% in the 2nd half of 2022, the result of growth combined with excellent industrial performance and dynamic operational management to cushion the impact of inflation.

In millions of euros	H1 2022	H2 2022	H2 2021
Economic revenue	4,318	5,159	3,879
Consolidated revenue	3,921	4,617	3,449
Operating margin	179	184	69
% of consolidated revenue	4.6%	4.0%	2.0%
Net profit (loss) – Attributable to owners of the parent	104	63	(16)
EBITDA	414	450	310
% of consolidated revenue	10.6%	9.8%	9.0%
Net investments	154	198	144
Free cash‑flow	134	109	100
Net debt at end of period	851	1,669	854
Net debt/equity and quasi‑equity	39%	86%	41%
Net debt/EBITDA	1.2	1.9	1.1

Comments on the fiscal year and outlook

REVENUE

By segment In millions of euros	2021	2022	Change	Change at constant scope and exchange rates
(*) Plastic Omnium Industries	5,826	6,897	+18.4%	+8.1%
Plastic Omnium Modules	2,191	2,580	+17.8%	+14.0%
ECONOMIC REVENUE	8,017	9,477	+18.2%	+9.7%
Joint ventures	784	939	+19.8%	+14.5%
(*) Plastic Omnium Industries	5,239	6,191	+18.2%	+7.5%
Plastic Omnium Modules	1,994	2,347	+17.7%	+13.5%
CONSOLIDATED REVENUE	7,233	8,538	+18.0%	+9.2%

(*) The Industries segment includes Intelligent Exterior Systems (IES), Clean Energy Systems (CES), New Energies (NE), PO Lighting Systems (POLS) and e‑Power (formerly Actia Power and battery packs).

In 2022, worldwide automotive production grew by +7,5% despite a context marked by production stoppages linked to the semiconductor shortage, the war in Ukraine and further lockdowns in China. This amounted to 79.7 million vehicles compared to 74.1 million in 2021. (1)

In this context, the Group's economic revenue (including the share of revenue of joint ventures, notably in China) amounted to €9,477 million, up by 18.2%, and 9.7% at constant scope and exchange rates compared to 2021, It includes a positive foreign exchange impact of €341 million and a contribution from acquired companies of €309 million.

Plastic Omnium's growth significantly outperformed that of automotive

production in Europe (outperformance of 5,3 points), North America (outperformance of 4.6 points), and Asia excluding China (outperformance of 16,7 points).

The geographic mix led to outperformance of 2.2 points compared to worldwide automotive production, driven by both the Industries segment (+1.2 points) and the Modules segment (+7.0 points).

Plastic Omnium's 2022 consolidated revenue amounted to €8,538 million, up by 9.2% at constant scope and exchange rates.

By region				Change at constant scope and	Outperformance/ automotive
In millions of euros and as a % of economic revenue	2021	2022	Change	exchange rates	production
	4,210	4,594
Europe	52.5%	48.5%	+9.1%	+5.5%	+5,3 pts
	2,048	2,714
North America	25.5%	28.6%	+32.5%	+13.8%	+4.6 pts
	939	1,097
China	11.7%	11.6%	+16.8%	+4.7%	-4,4 pts
	571	728
Asia excluding China	7.1%	7.7%	+27.5%	+26.7%	+16,7 pts
	131	178
South America	1.6%	1.9%	+36.2%	+29.9%	+21.4 pts
	118	165
Africa	1.5%	1.7%	+39.4%	+13.8%	+2.8 pts
ECONOMIC REVENUE	8,017	9,477	18.2%	+9.7%	+2.2 pts
Joint ventures	784	939	19.8%
CONSOLIDATED REVENUE	7,233	8,538	18.0%	+9.2%

In Europe, Plastic Omnium's revenue amounted to €4,594 million in 2022. It was up by 5.5% at constant scope and exchange rates, outperforming automotive production by 5,3 points This outperformance

Slovakia and Poland), whose revenue increased by + 20.9%, as well as by the PO Modules division, which posted double‑digit growth.

In North America, Plastic Omnium's revenue totaled €2,714 million. It rose sharply by 13.8% at constant scope and exchange rates in a market that grew by + 9.2%. This strong Group performance was driven by its good positioning in Mexico and the United States and by the dynamism of its order book. After closures related to the pandemic and the semiconductor crisis, activity in the region experienced a significant recovery, particularly in the electric segment in Mexico.

In Asia excluding China, revenue amounted to €728 million, up 26.7% at constant scope and exchange rates, in a market up 10,0%. This outperformance is mainly due to the Clean Energy Systems division, which benefited from strong momentum in its fuel tanks division, particularly in Thailand. The strong growth of this division was also driven by the opening of a new plant in Indonesia.

China, the world's largest automotive market, continued to grow despite the repeated pandemic‑related interruptions to production. In 2022, revenue amounted to €1,097 million, up 4.7% at constant scope and exchange rates (outperformance of 4,4 points). The YFPO joint venture recorded solid growth of +10.1% at constant scope and exchange rates, driven by the dynamism of new customers in the electric vehicle segment and the completion of numerous production start‑ups. Volumes produced in the fuel tank division fell by 16% (-16% in revenue at constant scope and exchange rates), due to the acceleration of the electrification of the domestic market. Plastic Omnium Modules posted a very strong increase in revenue (+24% at constant scope and exchange rates), driven in particular by the good momentum of foreign manufacturers in the electric segment.

FINANCIAL PERFORMANCE THAT REFLECTS DYNAMIC AND AGILE MANAGEMENT

Consolidated gross profit totaled €958 million in 2022, compared to €830 million in 2021. It represents 11.2% of consolidated revenue vs. 11.5% in 2021.

Operating margin amounted to €364 million, a sharp rise of +20.2% vs. 2021, and represented 4.3% of consolidated revenue, of which 316 million euros for Plastic Omnium Industries (5,1% of revenue) and €48 million for Plastic Omnium Modules (2.0% of revenue), an assembly activity whose performance should be assessed in relation to its low capital intensity.

Dynamic and agile cost management ensured a strong margin excluding acquisitions (5.1% of revenue), keeping the operating margin rate stable at Group level (post‑acquisitions). Flexibility and adaptation measures were strengthened to absorb the consequences of the impact of inflation, production disruptions related to semiconductor supply problems at carmakers, the war in Ukraine and lockdowns in China. The measures implemented enabled the Group to limit the impact of the associated additional costs on profit (loss) to €62 million, testifying to the Group's operational agility and excellence in an adverse context.

Gross R&D spend over the period was €373 million, representing 4.4% of consolidated revenue (vs. €309 million and 4.3% in 2021). Net R&D spend, i.e. after deduction of capitalized development costs and amounts recharged to customers, was €277 million (3.2% of consolidated revenue) compared to €258 million in 2021 (3.6% of consolidated revenue).

Selling costs totaled €50 million, i.e. 0.6% of consolidated revenue in 2022, versus €41 million (also 0.6% of consolidated revenue) in 2021.

Administrative costs increased from €252 million in 2021 to €296 million in 2022, representing 3.5% of consolidated revenue, also stable compared to 2021.

Amortization of intangible assets acquired in business combinations represented an expense of €18 million in 2022 compared to €20 million in 2021.

The Group's share of the income of associates and joint ventures was €47 million in 2022 versus €43 million in 2021.

	2021			2022
Consolidated revenue and operating margin by segment In millions of euros	Revenue	Operating margin	% of revenue	Revenue	Operating margin	% of revenue
(1) Plastic Omnium Industries	5,239	271	5.2%	6,191	316	5.1%
Plastic Omnium Modules	1,994	32	1.6 %	2,347	48	2.0%
TOTAL	7,233	303	4.2%	8,538	364	4.3%

(1) The Industries segment includes Intelligent Exterior Systems (IES), Clean Energy Systems (CES), New Energies (NE), PO Lighting Systems (POLS) and e‑Power (formerly Actia Power and battery packs division).

NET RESULT - GROUP SHARE : €168 MILLION

The Group recorded €64 million in non‑recurring expenses in 2022 (0.8% of revenue), stable compared to €56 million in 2021 (0.8% of revenue).

Net financial expenses amounted to -€62 million in 2022 (0.7% of revenue) compared to expenses of -€51 million in 2021 (0.7% of revenue)

as a result of a higher financing rates. The income tax amounted to -€60 million (25.3% of net income before tax), stable compared to 2021.

Net result group share amounted to €168 million in 2022 (2.0% of consolidated revenue) compared to €126 million in 2021 (1.7% of consolidated revenue).

FREE CASH‑FLOW OF €243 MILLION COMPARED TO €251 MILLION IN 2021

EBITDA totaled €864 million in 2022 (10.1% of consolidated revenue) versus €771 million (10.7% of consolidated revenue) in 2021. The Industries segment posted an EBITDA rate of 12.2% in 2022 compared to 12.9% in 2021.

In the second half of 2022, EBITDA amounted to €450 million (9.8% of revenue) as opposed to €310 million in the second half of 2021 (9.0% of revenue) and €414 million in the first half of 2022 (10.6% of revenue).

In a volatile market that lacks visibility, the Group has been particularly vigilant about its investments and the management of its working capital requirement.

Plastic Omnium's investments over the year totaled €351 million, or 4.1% of consolidated revenue (compared with €294 million, or 4.1% in 2021), translating into an increase of €57 million (19.4%). With manufacturing capacity now in place to support future growth, Plastic Omnium is prioritizing investments in innovation, new‑generation radars, modules for electric vehicles and hydrogen, one of the Company's future growth drivers.

At the same time, working capital requirement amounted to -€428 million at end‑2022, compared to -€498 million in 2021. This deterioration of €70 million is mainly due to the increase in inventories (+ €77 million excluding aquisitions), which is part of a context of supply difficulties for logistics chains.

Thanks to these elements and to cash generated by operations of €666 million (compared to €616 million in 2021), Plastic Omnium generated free cash‑flow of €243 million, i.e. 2.8% of consolidated revenue compared to €251 million in 2021 (3.5%). After generating €134 million in free cash‑flow in the first half of the year, Plastic Omnium generated €109 million in free cash‑flow in the second half of the year.

A ROBUST FINANCIAL STRUCTURE TO SUPPORT GROWTH

At December 31, 2022, net debt amounted to €1,669 million compared with €854 million in 2021, an increase due to the series of acquisitions completed in 2022 (AMLS OSRAM, Varroc Lighting Systems, ACTIA Power, investment in Verkor and buyout of HBPO minority interests), for approximately €900 million, financed in full by the Group's liquidity.

During the year, Compagnie Plastic Omnium SE distributed €41 million in dividends on its 2021 results (dividend of €0.28 per share and a pay‑out of 32.1% of net result - groupe share).

Group net debt in 2022 represented 1.9x EBITDA and 0.9x shareholders' equity.

As of December 31, 2022, the Group had liquidities of €2.3 billion comprising €0.4 billion in available cash and €1.9 billion in confirmed, undrawn credit lines, with an average maturity of 3 years and without any covenants.

5.1.2 INVESTMENTS

After an extensive capital expenditure program in recent years, the Group's current installed capacity is sufficient to support its future growth. As a result, investments will equal an average of 5% of revenue in the coming years, while the Group pursues its large‑scale innovation program.

5.1.3 OUTLOOK AND EVENTS AFTER THE REPORTING PERIOD

No event likely to have a material influence on the Group's business, financial position, results and assets as of December 31, 2022 has occurred since the closing date.

OUTLOOK FOR 2023

Plastic Omnium has set its 2023 objectives on the basis of worldwide automotive production as forecast by S&P Global Mobility of 82.1 million vehicles |0; 3.5t PC + LCV|, i.e an incrase of 3.1% in 2023.

Bolstered by the strong commercial and operational momentum, the Group is targeting the following objectives:

• Strong growth in economic revenue and outperformance compared to worldwide automotive production ● (1)
• Operating margin in excess of €400 million, up by more than +10%
• Free cash‑flow in excess of €260 million, in a context of strong investments in growth drivers ●

(1) Market assumption: S&P Global Mobility forecast, February 2023 82,1 million vehicles, [0‑3.5t - PC + LCV]

CONSOLIDATED FINANCIAL STATEMENTS at December 31, 2022

COMPAGNIE PLASTIC OMNIUM European company with share capital of €8,731,329.18 Registered office: 19 boulevard Jules Carteret - 69007 Lyon (France) Lyon Trade and Companies Register number 955 512 611

CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2022

Balance sheet 7
Income Statement 8
Statement of Comprehensive Net Income and gains and losses recognized directly in Equity9
Statement of Changes in equity 10
Statement of Cash-Flows11
Notes to the Consolidated Financial Statements12
PRESENTATION OF THE GROUP	12
1. ACCOUNTING STANDARDS APPLIED, ACCOUNTING RULES AND METHODS 1.1. Accounting standards applied 13	13
1.2. Scope of consolidation 13
1.2.1. Consolidation principles 13
1.2.2. Non-controlling interests 13
1.2.3. Translation of the financial statements of foreign subsidiaries 14
1.2.4. Business combinations 14
1.3. Operational items 15
1.3.1. Segment information 15
1.3.2. Revenue / "Revenue from Contracts with Customers" 15
1.3.3. Operating margin 15
1.3.4. Other operating income and expenses 16
1.3.5. Recognition of transactions in foreign currencies 16
1.3.6. Inventories and work in progress 16
1.3.7. Receivables 17
1.3.8. Grants 17
1.4. Staff costs and employee benefits 17
1.4.1. Share-based payment 17
1.4.2. Provisions for pensions and other post-employment benefits 18
1.5. Other provisions 19
1.5.1. Provisions for employee downsizing 19
1.5.2. Provisions for onerous contracts 19
1.6. Goodwill, property, plant and equipment and intangible assets 19
1.6.1. Goodwill 19
1.6.2. Intangible assets 19
1.6.3. Property, plant and equipment 20
1.6.4. Impairment of goodwill, property, plant and equipment and intangible assets 22
1.6.5. Investment property 22
1.7. Non-current assets held for sale and discontinued operations 23
1.8. Financial items 23
1.8.1. Financial assets (excluding derivatives) 23
1.8.2. Cash and cash equivalents 24
1.8.3. Current and non-current borrowings 24
1.8.4. Derivatives and hedge accounting 24
1.9. Income tax 24
1.10. Shareholders' equity and earnings per share 24

	1.10.1. Treasury stock 24
	1.10.2. Earnings per share 25
	1.11. Estimates and judgements 25
	2. SIGNIFICANT EVENTS OF THE PERIOD	27
	2.1. Volatile international context and impacts on the Group's activity 27
	2.1.1. Measures taken by the Group to mitigate the impacts of inflation, additional costs triggered by the international context on the operating margin 27
	2.1.2. War in Ukraine: Consequences on the Group's activity 27
	2.1.3. Asset impairment tests 27
	2.1.4. Deferred tax assets 28
	2.2. Other significant events of the period 29
	2.2.1. Changes in the share capital of Compagnie Plastic Omnium SE 29
	2.2.1.1. Share capital reduction by Compagnie Plastic Omnium SE by cancellation of treasury shares as of September 1, 2022 29
	2.2.2. Group acquisitions taking effect during the second half of 2022 and operational organization 29
	2.2.2.1 : Acquisition by Plastic Omnium of the final third of HBPO GmbH from Hella, bringing the Group's stake to 100% 29
	2.2.2.2 : Acquisition of two lighting businesses 30
	2.2.2.2.1 : Acquisition by Plastic Omnium of Automotive Lighting Systems GmbH (AMLS Osram) from the ams Osram group on July 1, 2022 30
	2.2.2.2.2 : Acquisition by Plastic Omnium of Varroc Lighting Systems (VLS) from Varroc Engineering Limited (Maharashtra, India) on October 6, 2022 30
	2.2.2.3 : Acquisition by Plastic Omnium of the "Actia Power" division from the Actia Group on August 1, 2022 30
	2.2.2.4. Impacts of the new AMLS Osram, Actia Power and VLS acquisitions on the Group's financial statements 31
	2.2.2.4.1. Impacts of the new AMLS Osram, Actia Power and VLS acquisitions on the Group's financial statements 31
	2.2.2.4.2. Acquisition price of AMLS Osram, Actia Power and VLS 31
	2.2.2.4.3. Consolidation of AMLS Osram, Actia Power and VLS in the financial statements of the Plastic Omnium Group and allocation of acquisition prices 31
	2.2.2.4.4. Provisional opening balance sheets of AMLS Osram, Actia Power and VLS in the Group's financial statements 33
	2.2.2.4.5. Contribution of AMLS Osram, Actia Power and VLS to the Group's 2022 results 34
	2.2.2.4.6. Plastic Omnium Group Proforma information 34
	2.2.3. Follow-up of changes in the scope of consolidation in 2021 34
	2.2.4. Follow-up of equity investments and investments in venture capital companies and start-ups specializing in future mobility solutions 36
	2.2.4.1. Group investment in the French company Verkor, a specialist in the manufacture of batteries for future mobility. 36
	2.2.4.2. Equity investment by the Group in the seed fund Fonds d'Amorçage Industriel Métropolitan S.L.P. (FAIM) for sustainable industry 36
	2.2.4.3. Payment by Compagnie Plastic Omnium SE to AP Ventures funds during the fiscal year 2022 36
	2.2.4.4. "Deltatech" Innovation and Research Center in Belgium in the process of being sold 36
	2.2.4.5. Disposal of the CES Division's "Vigo Metal" business in Spain 37
	2.2.5. Receipt during the period of a "carry-back" repayment in the United States 37
	2.2.6. Financing transactions 37
	2.2.6.1. Completion of a "Schuldschein" private placement – Amount: €400 million 37
	2.2.6.2. Change in Negotiable European Commercial Paper (Neu-CP) issuance during the fiscal year of 2022 37
	2.2.7. Group subsidiaries in hyperinflationary regions and impacts on the Group's financial statements 38
	2.2.7.1. Impacts of hyperinflation in Argentina and Turkey on the Group's financial statements 38
	3. SEGMENT INFORMATION 3.1. Information by operating segment 39	39
	3.1.1. Income statement by operating segment 40
	3.1.2. Balance sheet aggregate data by operating segment 41

3.1.3. Other information by operating segment 41
3.1.4. Revenue - Information by geographic region and country of sales 42
3.2. Non-current assets by country 43
4. NOTES TO THE INCOME STATEMENT 4.1. Breakdown of Research and Development costs 44	44
4.2. Cost of goods and services sold, development, selling and administrative costs 44
4.3. Staff costs 45
4.4. Amortization of intangible assets acquired 45
4.5. Share of profit (loss) of associates and joint ventures 45
4.6. Other operating income and expenses 46
4.7. Net financial income (expense) 47
4.8. Income tax 47
4.8.1. Tax expense recognized in the income statement 47
4.8.2. Analysis of tax expense - Tax proof 48
4.9. Net profit (loss) attributable to non-controlling interests 49
4.10. Earnings per share and diluted earnings per share 49
5. NOTES TO THE BALANCE SHEET 5.1. Assets 50	50
5.1.1. Goodwill 50
5.1.2. Other intangible assets 50
5.1.3. Property, plant and equipment 51
5.1.4. Non-consolidated interests, equity investments in associates and joint ventures and convertible bonds 53
5.1.5. Non-current financial assets 54
5.1.6. Inventories and inventories in progress 56
5.1.7. Trade and other receivables 56
5.1.8. Deferred taxes 58
5.1.9. Cash and cash equivalents 58
5.1.10. Statement of cash-flows – Acquisitions and disposals of financial assets, non-controlling interests and related investments and non-consolidated equity interests 59
5.1.11 Impact of dividends paid in the Statement of cash-flows 60
5.2. Liabilities and Shareholders' Equity 61
5.2.1. Group shareholders' equity 61
5.2.2. Dividends approved and paid by Compagnie Plastic Omnium SE 63
5.2.3. Share-based payments 63
5.2.4. Provisions 68
5.2.5. Provisions for pensions and other post-employment benefits 69
5.2.6. Current and non-current borrowings 74
5.2.7. Interest rate and currency hedges 77
5.2.8. Operating and other liabilities 78
6. CAPITAL MANAGEMENT AND MARKET RISKS 6.1. Capital management 80	80
6.2. Commodities risk - Exposure to plastics risk 80
6.3. Credit risk 81
6.3.1. Customer risk 81
6.3.2. Bank counterparty risk 81
6.4. Liquidity risk 81
6.4.1. Other long-term financial receivables - carrying amounts and undiscounted values 82
6.4.2. Liquidity risk by maturity 82

6.5. Currency risk 83
6.6. Interest rate risk 83
6.7. Additional information about financial assets and liabilities 83
7. ADDITIONAL INFORMATION	86
7.1. Headcount at end of year of controlled companies 86
7.2. Off-balance sheet commitments 86
7.2.1. Commitments granted / received 86
7.3. Related-party transactions 87
7.3.1. Compensation paid to executives and other corporate officers 87
7.3.2. Transactions with joint ventures and associates 88
7.3.3. Transactions with Sofiparc SAS, Burelle SA and Burelle Participations SA 89
7.4. Fees paid to the Statutory Auditors 89
7.5. Consolidating entity 90
7.6. Subsequent events 90
LIST OF CONSOLIDATED COMPANIES AT DECEMBER 31, 2022 91

BALANCE SHEET

In thousands of euros
	Notes	December 31, 2022	December 31, 2021
ASSETS
Goodwill	5.1.1	1,100,355	1,026,872
Other intangible assets	5.1.2	642,357	538,777
Property, plant and equipment	5.1.3	1,966,113	1,638,908
Investment property		30	30
Investments in associates and joint ventures	5.1.4.1	320,247	304,277
Non-consolidated investments and convertible bonds	5.1.4.2	20,334	136
Non-current financial assets(1)	5.1.5	88,730	87,422
Deferred tax assets	5.1.8	152,658	126,321
TOTAL NON-CURRENT ASSETS		4,290,824	3,722,743
Inventories	5.1.6	856,592	637,678
Financial receivables(1)		754	3,000
Trade receivables	5.1.7.2	1,023,261	734,277
Other receivables	5.1.7.3	499,052	354,395
Other financial assets and financial receivables(1)		201	43
Hedging instruments(1)	5.2.7	11,152	91
Cash and cash equivalents(1)	5.1.9	575,625	892,636
TOTAL CURRENT ASSETS		2,966,637	2,622,120
Assets held for sale	2.2.4.5	44,706	-
TOTAL ASSETS		7,302,167	6,344,863
SHAREHOLDERS' EQUITY AND LIABILITIES
Capital	5.2.1.1	8,731	8,827
Treasury stock		-29,386	-47,759
Additional paid-in capital		17,389	17,389
Consolidated reserves		1,718,829	1,871,433
Net income for the period		167,607	126,372
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT		1,883,170	1,976,262
Attributable to non-controlling interests		29,285	68,671
TOTAL SHAREHOLDERS' EQUITY		1,912,455	2,044,933
Non-current borrowings(1)	5.2.6.7	1,474,069	1,323,182
Provisions for pensions and other post-employment benefits	5.2.5	71,341	86,552
Provisions	5.2.4	48,272	34,235
Non-current government grants		20,944	13,321
Deferred tax liabilities TOTAL NON-CURRENT LIABILITIES	5.1.8	37,217 1,651,843	40,428 1,497,718
Bank overdrafts(1)	5.1.9.2	15,022	11,264
Current borrowings and financial debt(1)	5.2.6.7	855,185	500,929
Hedging instruments(1)	5.2.7	709	1,434
Provisions for liabilities and expenses	5.2.4	59,601	63,820
Current government grants Trade payables	5.2.8.1	665 1,651,877	700 1,264,426
Other operating liabilities	5.2.8.2	1,154,809	959,639
TOTAL CURRENT LIABILITIES		3,737,869	2,802,212
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		7,302,167	6,344,863

(1) Components of net financial debt (see Note 5.2.6.7).

INCOME STATEMENT

In thousands of euros	Notes	2022	%	2021	%
Consolidated sales (revenue)		8,538,110	100.0%	7,233,311	100.0%
Cost of goods and services sold	4.2	-7,580,460	-88.8%	-6,402,837	-88.5%
Gross profit		957,650	11.2%	830,474	11.5%
Research and Development costs	4.1 - 4.2	-276,972	-3.2%	-258,048	-3.6%
Selling costs	4.2	-49,648	-0.6%	-41,104	-0.6%
Administrative expenses	4.2	-296,061	-3.5%	-251,663	-3.5%
Operating margin before amortization of intangible assets acquired in business combinations and before share of profit (loss) of associates and joint ventures		334,969	3.9%	279,659	3.9%
Amortization of intangible assets acquired in business combinations	4.3	-17,962	-0.2%	-19,704	-0.3%
Share of profit (loss) of associates and joint ventures	4.4	46,868	0.5%	42,803	0.6%
Operating margin		363,875	4.3%	302,758	4.2%
Other operating income	4.6	21,212	0.2%	23,438	0.3%
Other operating expenses	4.6	-85,709	-1.0%	-79,835	-1.1%
Borrowing costs	4.7	-67,073	-0.8%	-48,617	-0.7%
Other financial income and expenses	4.7	5,395	0.1%	-1,897	-0.0%
Profit from continuing operations before income tax and after share of profit (loss) of associates and joint ventures		237,700	2.8%	195,847	2.7%
Income tax	4.8	-60,196	-0.7%	-60,269	-0.8%
Net profit (loss)		177,504	2.1%	135,578	1.9%
Net profit (loss) attributable to non-controlling interests	4.9	9,898	0.1%	9,206	0.1%
Net profit (loss) attributable to owners of the parent company		167,607	2.0%	126,372	1.7%
Earnings per share attributable to owners of the parent company	4.10
Basic earnings per share (in euros)		1.16		0.87
Diluted earnings per share (in euros)		1.16		0.87

STATEMENT OF COMPREHENSIVE NET INCOME AND GAINS AND LOSSES RECOGNIZED DIRECTLY IN EQUITY

In thousands of euros	December 31, 2022			December 31, 2021
	Total	Gross	Tax	Total	Gross	Tax
Net profit (loss) for the period attributable to owners of the parent(1)	167,607	222,088	-54,481	126,372	182,350	-55,978
Reclassified to the income statement	1,838	2,024	-186	36,995	36,958	38
Reclassified in the period	193	260	-67	193	260	-67
Cash-flow hedges	193	260	-67	193	260	-67
Reclassified at a later date	1,645	1,764	-119	36,802	36,698	105
Translation differences	1,163	1,163	-	37,103	37,103	-
Cash-flow hedges	482	601	-119	-301	-405	105
Gains/(losses) for the period – Exchange rate instruments	482	601	-119	-301	-405	105
Cannot be reclassified to the income statement at a later date	30,899	43,037	-12,138	28,422	29,732	-1,310
Actuarial gains/(losses) relating to defined-benefit plans	23,334	32,133	-8,799	11,883	13,193	-1,310
Revaluation of long-term investments in equity instruments and	-11,120	-11,120	0	12,532	12,532	-
funds
Revaluation due to hyperinflation in Argentina and in Turkey	13,415	13,415	0	4,007	4,007	-
Other changes	5,269	8,609	-3,340	-	-	-
Total gains and losses recognized directly in equity attributable to owners of the parent company	32,737	45,061	-12,324	65,417	66,689	-1,272
Net profit (loss) and gains and losses recognized directly in equity attributable to owners of the parent company(2)	200,343	267,148	-66,805	191,789	249,039	-57,250
Net profit (loss) for the period attributable to non-controlling interests	9,898	15,613	-5,715	9,206	13,497	-4,291
Reclassified to the income statement	205	205	-	3,436	3,436	-
Reclassified at a later date	205	205	-	3,436	3,436	-
Exchange differences on translating foreign operations	205	205	-	3,436	3,436	-
Total gains and losses recognized directly in equity - Non-controlling interests	205	205	-	3,436	3,436	-
Net profit (loss) and gains and losses recognized directly in equity - Non controlling interests	10,103	15,818	-5,715	12,642	16,933	-4,291
Net profit (loss) and gains and losses recognized directly in equity	210,447	282,968	-72,520	204,431	265,972	-61,541

(1) - (2) Regarding the "Net profits" and the "Net comprehensive income" attributable to owners of the parent company on the two periods of December 31, 2022 and December 31, 2021, see Note 5.2.1.3.

STATEMENT OF CHANGES IN EQUITY

In thousands of euros

In thousand units for the number of shares

	Number of shares	Capital	Capital reserve	Treasury stock	Other reserves (1)	Translation differences	Net profit for the period	Attributable to owners of the parent	Attributable to non controlling interests	Total Shareholders' equity
Capitaux propres publiés au December 31, 2020	148,566	8,914	17,389	-61,339	2,237,962	-81,204	-251,112			1,940,288
Impacts de la 1ère application des nouvelles normes de consolidation	-	-	-	-	3,123	-	-	3,123	-	3,123
Shareholders' equity at January 1, 2021	148,566	8,914	17,389	-61,339	2,241,085	-81,204	-251,112	1,873,732	69,677	1,943,411
Appropriation of net profit at December 31, 2020	-	-	-	-	-251,112	-	251,112	-	-	-
Net profit at December 31, 2021	-	-	-	-	-	-	126,372	126,372	9,206	135,578
Total gains and losses recognized directly in equity	-	-	-	-	22,675	42,742	-	65,417	3,436	68,853
Exchange differences on translating foreign operations	-	-	-	-	-5,639	42,742	-	37,103	3,436	40,539
Actuarial gains/(losses) relating to defined-benefit plans	-	-	-	-	11,883	-	-	11,883	-	11,883
Cash-flow hedges - Interest rate instruments	-	-	-	-	193	-	-	193	-	193
Cash-flow hedges - Currency instruments	-	-	-	-	-301	-	-	-301	-	-301
Change in the fair value adjustment of long-term investments in equities instruments and funds	_	_	_	_	12,532	_	_	12,532	_	12,532
Revaluation due to hyperinflation in Argentina	-	-	-	-	4,007	-	-	4,007	-	4,007
Net profit (loss) and gains and losses recognized directly in	-	-	-	-	-228,437	42,742	377,484	191,789	12,642	204,431
equity
Treasury stock transactions	-	-	-	-19,463	114	-	-	-19,349	-	-19,349
Capital reduction (cancellation of treasury stock)	-1,444	-87	-	33,043	-33,043	-	-	-87	-	-87
Dividends paid by Compagnie Plastic Omnium	-	-	-	-	-71,287	-	-	-71,287	-	-71,287
Dividends paid by other Group companies	-	-	-	-	-	-	-	-	-13,648	-13,648
Stock option and share purchase plans	-	-	-	-	1,972	-	-	1,972	-	1,972
Deferred tax on stock option and share purchase plans	-	-	-	-	-509	-	-	-509	-	-509
Shareholders' equity at December 31, 2021	147,122	8,827	17,389	-47,759	1,909,895 (1)	-38,462	126,372	1,976,262	68,671	2,044,933
Appropriation of net profit at December 31, 2021	-	-	-	-	126,372	-	-126,372	-	-	-
Net profit at December 31, 2022	-	-	-	-	-	-	167,607	167,607	9,898	177,505
Total gains and losses recognized directly in equity	-	-	-	-	28,541	4,196	-	32,737	205	32,942
Exchange differences on translating foreign operations	-	-	-	-	-3,033	4,196	-	1,163	205	1,368
Actuarial gains/(losses) relating to defined-benefit fees	-	-	-	-	23,334	-	-	23,334	-	23,334
Cash-flow hedges - Interest rate instruments	-	-	-	-	193	-	-	193	-	193
Cash-flow hedges - Currency instruments	-	-	-	-	482	-	-	482	-	482
Change in the fair value adjustment of long-term investments in equity instruments and in funds	-	-	-	-	- 11 120	-	-	- 11 120	-	- 11 120
Revaluation due to hyperinflation in Argentina and in Turkey	-	-	-	-	13,415	-	-	13,415	-	13,415
Other changes(3)	-	-	-	-	5,269	-	-	5,269	-	5,269
Net profit (loss) and gains and losses recognized directly in equity	-	-	-	-	154,913	4,196	41,235	200,343	10,103	210,447
Treasury stock transactions	-	-	-	-16,216	-	-	-	-16,216	-	-16,216
Capital reduction (cancellation of treasury stock)	-1,600	-96	-	34,590	-34,590	-	-	-96	-	-96
Change in scope of consolidation and reserves(4)	-	-	-	-	-236,854	-	-	-236,854	-38,544	-275,398
Dividends paid by Compagnie Plastic Omnium(2)	-	-	-	-	-40,586	-	-	-40,586	-	-40,586
Dividends paid by other Group companies	-	-	-	-	-	-	-	-	-10,945	-10,945
Stock option and share purchase plans	-	-	-	-	425	-	-	425	-	425
Deferred tax on stock option and share purchase plans	-	-	-	-	-109	-	-	-109	-	-109
Shareholders' equity at December 31, 2022	145,522	8,731	17,389	-29,385	1,753,094 (1)	-34,267	167,607	1,883,170	29,285	1,912,455

(1) See Note 5.2.1.4 for breakdown of "Other reserves".

(2) Regarding the dividends per share distributed by Compagnie Plastic Omnium SE in 2022 in respect of the 2021 fiscal year and in 2021 in respect of the 2020 fiscal year, see Note 5.2.2 on dividends voted and paid.

(3) Adjustments to amortization of previous fiscal years, see Note 5.1.2 "Other intangible assets".

(4) Change in scope following the acquisition by the Group of the final third of the stake in HBPO GmbH. The transaction led to the transfer of non-controlling interests to the Group share. See Note 2.2.2.1 in the "Other significant events of the period".

Shareholders' equity

STATEMENT OF CASH-FLOWS

In thousands of euros	Notes	2022	2021
I - CASH-FLOWS FROM OPERATING ACTIVITIES
Net profit (loss)	3.1.1	177,504	135,578
Dividends received from associates and joint ventures		37,308	31,553
Non-cash items		563,550	522,348
Share of profit (loss) of associates and joint ventures	4.5	- 46 868	- 42 803
Stock option plan expense		425	1,970
Other adjustments		3,623	- 4 382
Depreciation and provisions for impairment of property, plant and equipment		311,279	287,134
Amortization and provisions for impairment of intangible assets Changes in provisions		185,725 384	183,331 - 20 207
Net (gains)/losses on disposals of non-current assets		- 4 598	9,852
Operating grants recognized in the income statement		- 1 682	- 1 427
Current and deferred taxes	4.8.1	60,195	60,263
Cost of net debt		55,067	48,617
CASH GENERATED BY OPERATIONS (before cost of net debt and tax) (A)		778,362	689,479
Change in inventories and work-in-progress – net		- 71 456	40,718
Change in trade receivables – net Change in trade payables before exceptional disbursements related to the acquisition of "VLS"		- 46 469 83,626	125,485 - 170 872
Change in other operating assets and liabilities - net		- 38 144	- 66 805
CHANGE IN WORKING CAPITAL REQUIREMENTS before exceptional disbursements related to the acquisition of "VLS" (B)		- 72 443	- 71 474
CHANGE IN WORKING CAPITAL REQUIREMENTS (B') including exceptional disbursements related to the acquisition of "VLS"	2.2.2.4.3	- 219 843	- 71 474
TAXES PAID (C)		- 56 596	- 30 676
Interest paid		- 62 267	- 44 815
Interest received		6,922	2,406
NET FINANCIAL INTEREST PAID (D)		- 55 345	- 42 409
NET CASH GENERATED BY OPERATING ACTIVITIES before exceptional disbursements related to the acquisition of "VLS" (A+B+C+D)		593,978	544,920
NET CASH GENERATED BY OPERATING ACTIVITIES including exceptional disbursements related to the acquisition of "VLS" (A+B'+C+D)	2.2.2.4.3	446,578	544,920
II – CASH-FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property, plant and equipment	3.1.3	- 219 461	- 160 101
Acquisitions of intangible assets	3.1.3	- 160 956	- 145 195
Disposals of property, plant and equipment		7,634	7,245
Disposals of intangible assets		679	946
Net change in advances to suppliers of fixed assets Investment grants received		16,886 4,054	- 2 322 5,497
NET CASH USED IN OPERATIONS-RELATED INVESTING ACTIVITIES (E)		- 351 164	- 293 930
FREE CASH FLOW before exceptional disbursements related to the acquisition of "VLS" (A + B + C + D + E) FREE CASH FLOW including exceptional disbursements related to the acquisition of "VLS" (A + B' + C + D + E)	2.2.2.4.3	242,814 95,414	250,990 250,990
Acquisitions of equity investments in subsidiaries, investments leading to a change in control, investments in	2.2.3.1 -
associates and joint ventures, and related investments	5.1.10.a	- 160 867	- 43 486
Acquisitions of long-term investments in equity instruments and funds	5.1.5.1	- 15 539	- 57 549
Disposals of long-term investments in listed equity instruments and funds	5.1.5.1	6,283	237
Impact of changes in scope of consolidation - cash and cash equivalents contributed by companies entering the scope of consolidation		59,381	406
NET CASH FROM FINANCIAL TRANSACTIONS (F)		- 110 742	- 100 392
CASH FROM INVESTING ACTIVITIES (E+F)		- 461 906	- 394 322
III - CASH-FLOWS FROM FINANCING ACTIVITIES
Increases/reductions in share capital and premiums	5.2.1.1	- 96	- 87
Purchases/sales of treasury stock		- 16 216	- 19 349
Dividends paid by Compagnie Plastic Omnium SE to Burelle SA Dividends paid to other shareholders	5.1.11 5.1.11	- 24 450 - 27 115	- 42 788 - 44 243
Acquisition of equity securities with neither acquisition nor loss of control	5.1.10.a	- 281 667	-
Increase in financial debt	5.2.6.7	1,026,615	618,298
Repayment of financial debt and lease contract liabilities, net		- 978 299	- 596 968
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (G)		- 301 228	- 85 137
Effect of exchange rate changes (I)		- 4 209	- 1 801
NET CHANGE IN CASH AND CASH EQUIVALENTS
(A + B' + C + D + E + F' + G + H + I)		- 320 770	63,660
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5.1.9.2 - 5.2.6.7	881,372	817,712
CASH AND CASH EQUIVALENTS AT END OF PERIOD	5.1.9.2 - 5.2.6.7	560,603	881,372

(1) The aggregates impacted by exceptional disbursements related to the acquisition of VLS have been restated with a view to improving the relevance of the information published and the assessment of the Group's performance for the 2022 fiscal year. These disbursements are unrelated to the normal activity of the entities since their takeover by Plastic Omnium.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

On February, 21, 2023 the Board of Directors of the Plastic Omnium Group approved the consolidated financial statements for the fiscal year ended December 31, 2022, which will be submitted to the Combined General Meeting on April 26, 2023.

PRESENTATION OF THE GROUP

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, fuel supply systems, fuel cell stacks (Industrie Segment) and front-end modules (Module Segment). Since the second half of 2022, the Group has extended its business portfolio to include the manufacture of integrated exterior vehicle lighting systems, batteries and electrification systems for electric mobility.

The Group has organized its business into two operating segments:

• Industries:
  • o Intelligent Exterior Systems (IES), dedicated to complex and intelligent body systems;
  • o Clean Energy Systems (CES), which now comprises:
    • "Internal combustion engines" (ICE), dedicated to energy storage systems and emission reduction systems,
    • "E_Power", which hosts the new Actia Power division, acquired by the Group in the second half of 2022, which consists of the design and manufacture of on-board batteries, power electronics and electrification systems for the electric mobility of trucks, buses, coaches, trains and construction machinery. See "Other significant events of the period", Note 2.2.2.3 on the acquisition of the "Actia Power" business on August 1, 2022.
  • o New Energies (NE), created in 2022, dedicated to development of low-carbon mobility, such as hydrogen fuel cells and fuel tanks.
  • o Lighting, created in 2022, for integrated exterior systems, which includes the activities of the acquisitions of the second half of 2022 specialized in automotive lighting: AMLS Osram (OSRAM Automotive Lighting Systems) and VLS (Varroc Lighting Systems). See "Other significant events of the period", Note 2.2.2.2 on the acquisition of two specialist lighting businesses.
• Modules: module design, development and assembly (HBPO).

The Group has been listed on Eurolist compartment A since January 17, 2013 and is included in the SBF 120 and the CAC Mid 60 indices. The main shareholder is Burelle SA, which held 60.01% of the Group (60.65% excluding treasury stock) with voting rights of 73.78 % at December 31, 2022.

The unit of measurement used in the Notes to the consolidated financial statements is thousand euros, unless otherwise indicated.

1. ACCOUNTING STANDARDS APPLIED, ACCOUNTING RULES AND METHODS

1.1. Accounting standards applied

The accounting policies used to prepare the consolidated financial statements remain the same as those applied by the Group at December 31, 2021 except for newly applicable texts, including in particular that relating to the following point, taken into account from January 1, 2022: 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.

These changes have no significant impact on the consolidated financial statements.

They comply with IFRS standards and interpretations as adopted by the European Union at December 31, 2022 and available on the European Commission website.

IFRS include the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as well as the International Financial Reporting Interpretations Committee (IFRIC) decisions. These accounting principles do not differ significantly from the mandatory standards and interpretations as of December 31, 2022, as published by the IASB.

The Group has not applied in advance standards, interpretations and amendments that are not mandatory at December 31, 2022. Analysis of these impacts is underway.

1.2. Scope of consolidation

1.2.1. Consolidation principles

Companies in which the Group holds more than 50% of the voting rights and in which governance arrangements allow the Group to have control over the companies, are fully consolidated. Companies in which the Group holds less than 50% but over which the Group exercises control in substance, are also fully consolidated.

Companies over which the Group exercises joint control with other shareholders, regardless of the size of the holding, treated as "joint ventures" insofar as the Group has no joint operations, as well as companies over which the Group exercises significant influence (significant influence is presumed when the Group holds more than 20% of the voting rights in a company), and classified as "Investments in associates", are accounted for using the equity method.

The Group mainly reviews the following elements and criteria in order to assess whether joint control or significant influence is exercised over an entity:

• governance: representation of the Group on governance bodies, majority rules, veto rights;
• the determination of the substantial or protective rights granted to shareholders, in particular in relation to the relevant activities of the entity, participation in the policy-making process, and in particular decisions relating to dividends and other distributions;
• the consequences of a conflict resolution clause;
• the right / exposure of the Group to the entity's variable returns.

1.2.2. Non-controlling interests

Non-controlling interests represent the share of interest that is not held by the Group. They are presented as a separate item in the income statement and under equity in the consolidated balance sheet, distinct from the profit and equity attributable to owners of the parent.

Non-controlling interests may be either measured at fair value on the acquisition date (i.e. with a share of goodwill) or for their share in the fair value of identifiable net assets acquired. This choice can be made on a transaction-by-transaction basis.

Changes in a parent's ownership interest in a subsidiary that do not change control are recognized as equity transactions. As such, in the event of an increase (or decrease) in the percentage ownership interest of the Group in a controlled entity, without change in control, the difference between the acquisition cost (or transfer price) and the carrying amount of the share of net assets acquired (or sold) is recognized in equity.

1.2.3. Translation of the financial statements of foreign subsidiaries

Plastic Omnium Group uses the euro as its presentation currency in its financial statements. The financial statements of foreign companies are prepared in their functional currency, i.e. in the currency of the economic environment in which the entity operates; the functional currency usually corresponds to the local currency, except for some foreign subsidiaries such as the Mexican and Polish subsidiaries which carry out the majority of their transactions in another currency. These financial statements are translated into the Group's presentation currency, as follows:

• translation of balance sheet items, other than equity, at the closing rate;
• translation of income statement items at the average rate for the period;
• translation differences are recognized in consolidated equity.

Goodwill arising from business combinations with foreign companies is recognized in the functional currency of the acquired entity. It is subsequently translated into the Group's presentation currency at the closing rate, with the translation difference recognized in equity.

On disposal of the entire interest in a foreign company, the related translation differences initially recognized in equity, are reclassified in profit and loss.

1.2.4. Business combinations

Business combinations are recognized by applying the acquisition method. Identifiable assets, liabilities and contingent liabilities acquired are recognized at their fair value on the purchase date.

The surplus of the sum of the price paid to the seller and, where appropriate, the value of the non-controlling interest in the company acquired against the net balance of the assets acquired and the identifiable liabilities assumed is recognized in goodwill.

Where the takeover is carried out through successive purchases, the consideration also includes the acquisition-date fair value of the acquirer's previously held equity interest in the acquired company. The previously held equity interest is measured at fair value through profit or loss.

Acquisition costs are recorded as expenses.

The fair value adjustments of assets acquired and liabilities assumed are offset against goodwill adjustments on the basis of information obtained during the allocation period, i.e. within twelve months of the acquisition. Changes in value after that date are recognized in profit or loss, including any changes in deferred tax assets and liabilities, if they are related to new items that have occurred since the change of control. If they result from new information relating to facts existing at acquisition date and collected during the 12 months following this date, they are an offset to the acquisition's goodwill.

The changes that trigger a takeover have the following consequences.

• a theoretical sale of the historically held equity holding, with recognition of the gain or loss on disposal at the date of acquisition;
• accounting for the business combinations under IFRS 3 "Business Combinations".

1.3. Operational items

1.3.1. Segment information

Segment information is presented on the basis of the segments identified in the Group's internal reporting and notified to the management in order to decide on the allocation of resources and to analyze performance.

The Group has two operating segments: "Industries" and "Modules".

1.3.2. Revenue / "Revenue from Contracts with Customers"

Since January 1, 2018, the Group has applied IFRS 15 "Revenue from Contracts with Customers".

Sales of parts

Agreements signed with customers in the context of the development and supply of parts do not meet the criteria of a contract within the meaning of IFRS 15; in general, only firm orders received from customers are analyzed as contracts creating a performance obligation.

Revenue from sales of parts is recorded when control of the goods is transferred to the client, usually upon delivery of the goods, and measured at the fair value of the consideration received, after deducting discounts, rebates and other sales taxes and customs duties.

Services and creation of specific tooling

The project phase corresponds to the period during which the Group is working on the development of the part to be produced, on the design and manufacture of specific tooling to be used in production as well as on the organization of future production processes and logistics. It begins with the selection of the Group for the vehicle and the product concerned and is completed when the normal production volume is reached.

The accounting treatment applied is based on the identification by the Group in most cases of two performance obligations, distinct from the production of parts, under the Design business and the supply of certain specific tooling whose control is transferred to clients.

Income from the design activity, including that explicitly included in the part price, is recognized at the start of series production. Payments received before the start of series production are recorded in customer advances. The costs related to these two performance obligations are recognized in inventories during the project phase and then in expenses when their control is transferred to the client, i.e. when series production is launched.

Entities of the VLS group, of which the Group took control in October 2022, recognize Tooling revenue according to the percentage of completion method. Analyzes are underway as part of the preparation of the opening balance sheet, to determine the relevance of maintaining this accounting treatment.

1.3.3. Operating margin

The Group presents an operating margin in the income statement before taking into account the following items:

• the amortization of intangible assets related to acquisitions as part of business combinations; and
• the share of income of associates and joint ventures.

The Group also presents an operating margin after taking these elements into account.

The first aggregate corresponds to revenue less direct selling costs, Research and Development expenses, selling and administrative costs. "Net Research and Development expenses" include tax credits related to the research effort of Group

subsidiaries (see Notes 4.1 "Breakdown of Research and Development expenses" and 4.2 "Costs of goods and services sold, development, selling and administrative costs").

The second aggregate includes the share of profit (loss) of associates and joint ventures presented on a separate line and the impacts related to the amortization of customer contracts and brands acquired in the context of business combinations also presented on a separate line of the income statement.

The main operating indicator used by the Group is the operating margin after taking into account the amortization of intangible assets related to acquisitions and the share of profit (loss) of associates and joint ventures, termed "operating margin" in the income statement.

The operating margin does not include other operating income and expenses (see Note 1.3.4).

1.3.4. Other operating income and expenses

Other operating income and expenses essentially include:

• the results of the disposal of property, plant, equipment and intangible assets;
• provisions for the impairment of property, plant, equipment and intangible assets, including any impairment of goodwill;
• exchange rate differences arising from different currency rates between those used to recognize operating receivables and payables and those recorded when these receivables and debts are settled;
• unusual items corresponding to non-customary income and expenses due to their frequency, nature or amount, such as profits and losses realized in the context of changes in the scope of operations, pre-start-up costs for large new plants, restructuring costs and those related to employee downsizing measures.

1.3.5. Recognition of transactions in foreign currencies

Transactions in foreign currencies are initially recorded in the functional currency at the rate on the transaction date. On the closing date, monetary assets and liabilities are revalued at the rates prevailing at the closing date. Non-monetary assets and liabilities are valued at the historical cost prevailing at the transaction date (for example: goodwill, property, plant and equipment, inventories). Non-monetary assets and liabilities measured at fair value are valued at the rates prevailing at the date when fair value is determined.

For monetary items, exchange rate differences arising from changes in foreign exchange rates are recorded in the income statement as other operating income and expenses when they relate to operations and as net financial income (expense) when they relate to financial transactions.

1.3.6. Inventories and work in progress

1.3.6.1. Raw material inventories and other supplies

Raw material inventories and other supplies are measured at the lower of cost and net realizable value.

At the end of the fiscal year, a provision for impairment of these inventories is recorded when the estimated sales price of the finished products for whom they are earmarked in the normal course of business, less the residual estimated selling, production and processing costs, is less than their carrying amount.

1.3.6.2. Finished and semi-finished product inventories

Finished and semi-finished products are valued on the basis of standard production costs, revised annually. Costs include raw materials and direct and indirect production costs. These costs do not include any administrative overheads or IT not linked to production, Research and Development expenses or selling costs. In addition, they do not include the cost of below-normal capacity utilization.

1.3.6.3. Project inventories - Tools and development

These inventories correspond to costs incurred by the Group in order to satisfy a performance obligation in connection with automotive projects.

The cost of inventories is compared at the balance sheet date to the net realizable value. If it exceeds the net realizable value, an impairment loss is recorded to bring the inventories to their net realizable value.

1.3.7. Receivables

Receivables are recorded at their fair value at the time they are recorded. The fair value generally corresponds to the nominal value of the receivable as long as the sale has been carried out with normal payment terms. Impairment losses are booked to cover expected credit losses and identified risks of non-recovery. The amount of impairment is calculated on a statistical basis for credit risk and counterparty by counterparty, on an individual basis for non-recovery risk.

Receivables sold to third parties, which are removed from the balance sheet, meet the following criteria:

• the rights attached to receivables are transferred to third parties;
• substantially all the risks and rewards of ownership are transferred to third parties.

The risks taken into account are the following:

• o credit risk,
• o risks related to payment arrears both for the duration and amounts,
• o the transfer of interest rate risk, which is fully assumed by the buyer.

1.3.8. Grants

The grants received are recognized as liabilities in the balance sheet; they correspond to grants to finance investments in new sites, production equipment or research and development programs.

Grants are recognized in profit or loss at the gross profit level, as and when the assets acquired through these grants are depreciated or the associated research expenses are recognized.

1.4. Staff costs and employee benefits

1.4.1. Share-based payment

Stock option and free share purchase plans granted to employees are measured in accordance with IFRS 2 at their fair value at the date of grant by the Board of Directors, using the Black & Scholes mathematical model.

The fair value is recognized in "Personnel costs" on a straight-line basis over the vesting period, with a corresponding adjustment to reserves.

When options are exercised, the cash amount received by the Group in respect of the exercise price is recorded in cash and cash equivalents with a corresponding adjustment to consolidated reserves.

Obligations resulting from share-based payments, such as the "Long Term Incentive plan" described in Note 5.2.3 implemented during the 2022 fiscal year are accounted for as cash settlement plans in accordance with standard IFRS 2. These cash-settled plans are measured at fair value over their term.

The expense relating to expected estimated payments is spread over the vesting period and is included in personnel expenses.

1.4.2. Provisions for pensions and other post-employment benefits

All Group employees are covered by pensions and other long-term post-employee benefits. Pension plans comprise defined-contribution plans or defined-benefit plans.

In June 2021, the IASB approved the position presented by the IFRIC on the method for attributing benefits to periods of service as part of the measurement of employee benefits (IAS 19).

The plans concerned are defined-benefit plans, satisfying all of the following conditions:

• the attribution of benefits, paid in the form of a single benefit at the time of retirement, is subject to the employee's presence in the company at the time of retirement;
• benefits depend on the length of service in the company at the time of retirement and are capped after a certain number of years of service.

The new method leads to the creation of a provision for employees only after a certain number of years of service and to the provision changing on a straight-line basis until the date of the employee's retirement.

Only End-of-Career Benefits provided by French companies were affected by this change in method, resulting in a reduction in the actuarial liability (€3.5 million) at the end of 2021.

1.4.2.1. Defined-contribution plans

The cost of defined-contribution plans, corresponding to salary-based contributions to local bodies responsible for pension and death/disability insurance plans made in accordance with local laws and practices in each country, is recognized as an operating expense. The Group has no legal or implicit obligation to pay additional contributions or future benefits. Consequently, no actuarial liability is recorded under these defined-contribution plans.

1.4.2.2. Defined-benefit plans

Defined-benefit plans are mainly related to post-employment benefits and correspond principally to the following commitments:

• pension plans for French employees;
• other pension and supplementary pension plans, mainly in the US, France and Belgium;
• plans to cover healthcare costs in the US.

Defined benefit plans are subject to provisions for staff benefits calculated on the basis of actuarial valuations carried out by independent actuaries using the projected unit credit method.

These assessments take into account assumptions specific to each plan such as:

• retirement dates determined according to the terms of the legislation and, in particular for French employees, a voluntary retirement assumption when full benefit rights have been acquired;
• mortality;
• the probability of active employees departing before retirement age;
• estimates of salary increases up to retirement age;
• discount rates and inflation.

When defined-benefit plans are funded, the commitments under these plans are reduced by the market value of plan assets at the reporting date. The valuation builds in long-term profitability assumptions for the invested assets, calculated on the basis of the discount rate used to value company commitments.

Changes in provisions for defined-benefit obligations are recognized over the benefit acquisition period, in the income statement under "Operating expenses", except for:

• the effect of the reversal of discounting of the commitments recognized in net financial income (expense);
• actuarial gains and losses on post-employment benefit obligations recognized in equity.

1.4.2.3. Other long-term benefits

Other long-term benefits correspond mainly to long-service awards for French employees.

Actuarial gains and losses on "Other long-term benefits" (mainly long-service and jubilee awards) are recognized immediately in profit or loss.

1.5. Other provisions

1.5.1. Provisions for employee downsizing

The cost of employee downsizing plans is recognized in the period in which a detailed plan is drawn up and announced to the employees concerned or their representatives, thus creating a well-founded expectation that the Group will implement this plan.

1.5.2. Provisions for onerous contracts

Provisions are booked when there are obligations to third parties leading to a likely outflow of resources for the benefit of these third parties without a counterparty of at least equivalent value expected for the Group. Losses identified on onerous contracts, i.e. contracts whose unavoidable costs relating to their obligations are greater than the expected economic benefits, are subject to provisions. These provisions are recognized in current or non-current liabilities depending on whether they are short- or medium/long-term in nature.

1.6. Goodwill, property, plant and equipment and intangible assets

1.6.1. Goodwill

Goodwill is measured annually at cost, less any impairment representing loss of value. Impairments on goodwill are irreversible.

Negative goodwill (badwill) is recorded in the income statement during the year of acquisition.

1.6.2. Intangible assets

1.6.2.1. Research and Development costs

Development costs incurred during the project phase and related to the execution of a contract with a customer not fulfilling a performance obligation are recognized as intangible assets. These internal and external costs relate to the work on the organization of purchasing, logistics and industrial processes to produce the parts that will be ordered by customers.

These costs are recognized as intangible assets in progress during the development phase and amortized on a straight-line basis over the estimated life of the series production, i.e. generally three years for exterior parts, five years for fuel systems and the "Lighting" and "Modules" segments.

The amortization of development hours is booked under Research and Development costs.

Assets under construction are subject to annual impairment tests. As of their commissioning, impairment tests are carried out as soon as signs of impairment are identified.

Income received from related customers in respect of these costs is recognized in revenue from the start of series production and over the duration of production. Payments received before the start of series production are recorded in customer advances.

The accounting treatment of costs that satisfy a performance obligation is described in Note 1.3.2 "Revenue / Revenue from Contracts with Customers ".

Furthermore, under IFRS 15, only the costs related to obtaining contracts that would not have existed in their absence are credited to the assets and depreciated over the expected production period. Costs incurred by the Group prior to its selection by the customer, such as those incurred by sales teams, are recognized as an expense for the period.

1.6.2.2. Other Research and Development costs

Research and development expenses for a generic technology that do not meet the capitalization criteria of IAS 38 Intangible Assets are recorded as expenses for the fiscal year.

1.6.2.3. Other intangible assets

Other intangible assets are measured at cost less accumulated amortization and impairment losses. They are amortized according to the straight-line method over their estimated useful lives.

They mainly included the "Faurecia Exterior Systems business" (fully amortized at December 31, 2022) and "HBPO" customer contracts in 2018.

As part of the "AMLS Osram" and "Actia Power" acquisitions carried out in the second half of 2022, the Group proceeded with the provisional allocation of the acquisition prices. In this context, the technology acquired was assessed and recognized in the Group's consolidated financial statements on the following bases:

• AMLS Osram technology for €16 million amortized over 10 years from July 1, 2022;
• Actia Power technology for €4.5 million amortized over seven years from August 1, 2022.

VLS technology and customer contracts acquired are currently being assessed; this work is expected to be finalized in the first quarter of 2023.

1.6.3. Property, plant and equipment

1.6.3.1. Assets owned outright

Gross values

Property, plant and equipment are initially recorded at their acquisition cost, at their cost of production when they are manufactured by the company for its own use (or subcontracted) or at their fair value for those acquired without consideration.

Property, plant and equipment may be specific tooling developed by the Group in connection with production contracts signed with customers without transfer of control to customers, for which the Group will receive an integrated compensation in the part price, where appropriate. In this case, the compensation is recorded in revenue over the series' production term.

If fixed assets have been sold or transferred within the Group, any gains and losses are eliminated in the consolidated financial statements.

Property, plant and equipment are later recognized at cost less total depreciation based on their lifespan and total impairment.

Maintenance and repair costs for fixed assets to restore or maintain the future economic benefits that the company can expect in terms of the estimated level of performance at the time of acquisition are recognized as an expense as incurred.

Future expenditures are capitalized only if it is probable that the future economic benefits associated with the expenditure benefit the Group, for example, by an increase in the performance or effectiveness of the asset concerned.

Buildings	20 and 40 years
Real estate fixtures	10 years
Presses and transformation machines	7 - 10 years
Machining, finishing and other equipment	3 - 10 years

The Group applies the components approach to its real estate assets and major functional assemblies.

From their date of acquisition, the entities apply the Group's depreciation periods, where relevant.

1.6.3.2. Lease contracts

The Group applies IFRS 16 "Leases".

As part of the implementation of this standard, the Group assesses whether a contract is a lease under IFRS 16 by assessing on the entry date of said contract, whether the latter relates to a specific asset, and whether the Group obtains almost all of the economic benefits linked to the use of the asset and the ability to control the use of this asset.

The two capitalization exemptions proposed by the standard for contracts with an initial term of less than or equal to 12 months and goods of low unit value when new, which the Group has defined as being less than or equal to €5,000, have been used.

The accounting treatment is as follows:

• recognition as property, plant and equipment of rights to use assets under leases that meet the capitalization criteria defined by IFRS 16;
• recognition of a financial debt in respect of the obligation to pay rent during the term of these contracts;
• recognition of a depreciation charge for the right-of-use of the asset and a financial charge relating to interest on the lease debt, which partially replace the operating charge previously recorded in respect of the rent. The amortization period for the right-of-use is determined on the basis of the duration of the contract, taking into account an option of renewal or termination when its exercise is reasonably certain;
• in the cash-flow statement, debt repayments affect financing flows.

The discount rate used to calculate the debt is determined, for each property, according to the marginal debt rate at the start date of the contract. This rate corresponds to the interest rate that the lessee would obtain, at the start of the lease, to finance the acquisition of the leased asset. This rate is obtained by adding the rate on government bonds with terms similar to the leased assets and the entity's credit spread.

The Group has adopted a tool allowing it to carry out, for each lease meeting the IFRS 16 capitalization criteria, an assessment of the rights-of-use and the related financial debt and of all the impacts on the income statement and balance sheet in accordance with IFRS 16.

The amounts recognized as right-of-use assets and as financial debt mainly relate to property leases of industrial sites, storage and administrative premises; the remainder corresponds principally to industrial equipment and vehicles.

1.6.4. Impairment of goodwill, property, plant and equipment and intangible assets

1.6.4.1. Impairment of goodwill

Plastic Omnium Group goodwill is not amortized but is tested for impairment at least annually, at year-end, as well as during the current year when there is evidence of impairment.

Impairment tests are carried out at the level of the cash-generating units (CGU) or groups of cash-generating units, which are:

• Industries
• Modules

The net carrying amount of all assets (including goodwill), comprising each cash-generating unit, is compared to its recoverable amount, i.e. the higher of the fair value less disposal costs and the value in use determined using the discounted cash-flow method.

These forecast data are based on the Group's medium-term plans, which are prepared for the next five years, revised as necessary to reflect the most recent market conditions. Beyond this timeframe, a terminal value is calculated based on the capitalization of the data for the last year covered by the business plan, using a long-term growth rate that reflects the outlook for the market. These forecast data are then discounted.

The assumptions used to determine the discount rates take into account:

• an industry risk premium;
• an industry financing "spread" to assess the cost of debt;
• the rates used by comparable companies in each segment.

Sensitivity tests are carried out on the key assumptions, namely the discount rate, the perpetual growth rate and the operating margin.

1.6.4.2. Impairment of depreciable property, plant and equipment and intangible assets

Depreciable property, plant and equipment and intangible assets are subject to impairment tests from the time they enter service whenever there is evidence of signs of impairment such as recurring losses for an entity, decisions to stop commercializing production, or site closures. Intangible assets in progress are also subject to a value test annually at yearend.

1.6.5. Investment property

The items in the "Investment property" section of the Group's balance sheet assets are not included in ordinary operations. These assets, which belong to the Group, correspond to real estate:

• not occupied on the balance sheet date and whose use is unspecified; or
• held by the Group for its long-term appreciation and which is leased under operating leases.

The Group may, where appropriate, decide to use all or part of a property whose use is unspecified (in which case the relevant part would be reclassified as operating property) or lease it under one or more operating leases.

Investment property is measured at fair value at the balance sheet date, with changes in fair value recognized in profit or loss. The land on which the buildings are constructed follows the same accounting treatment. An independent appraiser makes regular valuations as part of the year-end closing process. Between two valuations, the Group ensures that the real estate market has not undergone any significant change. The fair value determined by the expert is assessed by direct reference to observable prices in an active market (level 2 fair value).

1.7. Non-current assets held for sale and discontinued operations

The following items are classified as "Assets held for sale" on the balance sheet, as soon as the assets or groups of assets are available-for-sale in their current state and the sale is highly probable:

• non-current assets held pending their sale;
• a group of assets held for sale and not for continuing use;
• businesses or companies acquired with a view to subsequent sale.

Liabilities related to these assets, groups of assets, businesses and companies held for sale are also presented as a separate item under liabilities in the balance sheet, "Liabilities directly related to assets held for sale".

Assets (or groups of assets) classified in this category are no longer depreciated. They are valued at the lower of their carrying amount and selling price, less selling costs. Any impairment losses are recognized by the Group under "Other operating expenses".

On the balance sheet, data related to "Assets and activities held for sale" shown separately in the financial statements do not give rise to the restatement of prior years in terms of presentation.

In the income statement, the profit/loss (from the period and from the sale) of business operations or entities that meet the definition of a discontinued operation are reported as a separate line item entitled "Net income from discontinued operations" in each of the fiscal years presented.

1.8. Financial items

1.8.1. Financial assets (excluding derivatives)

1.8.1.1. Equity investments and funds

These equity investments correspond to shares in listed companies as well as units subscribed for in funds and venture capital companies. On the acquisition date, they are measured at fair value plus transaction costs directly attributable to their acquisition.

In accordance with IFRS 9:

• changes in the fair value of listed companies are accounted for using the alternative method provided by IFRS 9 in "Other comprehensive income in equity" (OCI) without recycling in profit or loss;
• changes in the fair value of funds are recognized in profit or loss.

The impact of the application of this standard is not material for the Plastic Omnium Group.

1.8.1.2. Other financial assets

Other financial assets include loans, security deposits and surety bonds. They are measured at amortized cost. Whenever there is objective evidence of impairment (i.e. a negative difference between the carrying amount and the recoverable amount), an impairment provision is recognized through profit or loss. This impairment may be reversed if the recoverable amount subsequently increases.

Other financial assets also include marketable securities that do not meet the criteria for classification as cash equivalents. They are valued at their fair value on the closing date, and changes in fair value are recorded in net financial income (expense).

1.8.2. Cash and cash equivalents

Cash and cash equivalents presented in the Statement of Cash-Flows include short-term, highly liquid cash items, readily convertible into known amounts of cash and subject to a negligible risk of change in value. Cash comprises cash and cash equivalents, short-term deposits and bank balances, with the exception of those authorized to cover short- or mediumterm cash needs arising from day-to-day operations. Cash equivalents correspond to short-term investments and are subject to a negligible risk of changes in value in the context of the temporary use of cash surpluses (money market funds, negotiable debt securities, etc.). Changes in the fair value of these assets are recognized in profit or loss.

1.8.3. Current and non-current borrowings

Current and non-current borrowings are valued using the amortized cost method and the effective interest rate.

Borrowings in foreign currencies contracted by a subsidiary from the Group and whose repayment is neither planned nor likely in the foreseeable future are considered to be part of the net investment of the Plastic Omnium Group in this foreign business. The corresponding translation differences are recognized in equity.

1.8.4. Derivatives and hedge accounting

In order to manage its interest rate risk, the Group may use OTC derivative instruments. These hedging instruments are valued and recognized in the balance sheet at their fair value.

Changes in the fair value of instruments described as "Cash-flow hedges" are recorded under "Other comprehensive income" (equity) for the effective parts and in financial income for the ineffective parts in application of IFRS 9.

Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in profit or loss.

1.9. Income tax

In France, the entity Compagnie Plastic Omnium maintained the option for the ordinary law tax consolidation system for itself and the French subsidiaries at least 95% controlled, as set out in Article 223 A of the French Tax Code.

In addition, the Group applies optional national consolidation or tax consolidation plans in Germany, Spain and the United States.

The Plastic Omnium Group recognizes deferred taxes relating to temporary differences between the tax values and the carrying amount of assets and liabilities on the consolidated balance sheet without discounting.

Deferred taxes are calculated using the liability method, applying the last tax rate enacted (or the quasi-adopted rate) at the balance sheet date and applicable to the period in which the temporary differences reverse.

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.

1.10. Shareholders' equity and earnings per share

1.10.1. Treasury stock

The Plastic Omnium Group's treasury stock is recorded as soon as it is acquired as a deduction from equity, regardless of the purpose for which it is being held.

The proceeds from the sale of these securities are recognized directly as an increase in the Group's equity, any gain or loss on the sales having no impact on the net profit (loss) for the fiscal year.

1.10.2. Earnings per share

Basic earnings per share are calculated using the weighted average number of ordinary shares comprising the share capital, less the weighted average number of shares held in treasury stock.

Diluted earnings per share take into consideration the average number of treasury shares deducted from equity and shares which might be issued in respect of the fiscal year under stock option programs.

1.11. Estimates and judgements

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 liable to result in significant adjustments to the carrying amount of assets and liabilities, are reviewed periodically by Senior Executives. The amounts in the future financial statements of the Group may include changes in estimates or assumptions in light of past experience and changes in economic conditions.

In general, the estimates and assumptions used during the fiscal year were based on the information available at the balance sheet date. Estimates may be revised depending on changes in the underlying assumptions. These assumptions mainly concern:

Deferred taxes

Recognition of deferred tax assets depends on the probability of sufficient future profit being generated to permit their utilization. This leads the Group to make regular estimates of future taxable earnings, particularly as part of the mediumterm plans established within the Group. These estimates take into account the recurring or non-recurring nature of certain losses, expenses, etc.

Provisions

Provisions for pensions and other post-employment benefits

In the case of defined-benefit plans, the Group, assisted by independent actuaries, adopts assumptions (see Notes 1.4.2 and 5.2.5 "Provisions for pensions and other post-employment benefits") on:

• discount rates for pension and other long-term benefits;
• rates of increases in healthcare costs for the United States;
• employee turnover and future salary increases.

Other provisions

Estimates also cover provisions, particularly those relating to employee downsizing, litigation, customer warranties, legal and tax risks for which, in some cases, the Legal Department may be required to employ specialized lawyers.

Asset impairment tests

Impairment tests are carried out each year, in particular on goodwill and development costs relating to automotive projects, but also during the year on these same assets as well as on industrial assets if signs of impairment are identified.

As part of these tests, for the determination of the recoverable amount, the concepts of fair value net of disposal costs and value in use obtained by the discounted cash-flow method are used. These tests are based on assumptions about future operating cash-flows and discount rates.

Assumptions that could have a material impact on the financial statements concern, in particular, the discount rates and growth rates (see Note 2.1.3 "Asset impairment tests").

Sensitivity tests are performed on the long-term growth rate and discount rate assumptions for tests relating to goodwill and on the level of operating margin for tests relating to significant industrial assets.

Lease contracts (IFRS 16)

The discount rate is a key assumption in determining accounting impacts related to the application of IFRS 16 on leases It is used to calculate the right of use and the lease liability for each leased asset (see Note 1.6.3.2).

Other uncertainties

To date, the uncertainties likely to significantly impact the assumptions are supply chain difficulties, the rise in inflation in several geographical areas where the Group operates, the geopolitical climate and regulations of all kinds (climate, automotive industry).

2. SIGNIFICANT EVENTS OF THE PERIOD

2.1. Volatile international context and impacts on the Group's activity

Plastic Omnium's activities in 2022 have been affected by the following events:

• rising inflation worldwide, particularly in materials, energy and labor costs;
• the continuation of Covid-19, and in particular the lockdowns in China, with a limited impact on the Group's activity;
• the war between Ukraine and Russia;
• the disruption of the supply chain for materials and components, leading to stoppages in the production lines of car manufacturer customers to whom the Group is adapting its activity; and
• • the rise in interest rates.

2.1.1. Measures taken by the Group to mitigate the impacts of inflation, additional costs triggered by the international context on the operating margin

In the first half of 2022, the Plastic Omnium Group used several levers to mitigate the various effects on its operating margin that have emerged since the start of Covid-19, in addition to the disruptions caused by the war in Ukraine, rising inflation and in particular soaring raw material costs:

• pursuing flexibility and cost-control plans;
• applying contractual provisions for indexing the purchase price of materials such as resin;
• discussions with suppliers to moderate the increase in materials, goods and services purchased;
• partial pass-through of price increases to car manufacturer customers; and
• the renewal of contractual coverage for the purchase of energy (gas and electricity).

2.1.2. War in Ukraine: Consequences on the Group's activity

The Group does not operate in Ukraine.

In Russia, non-current assets (real estate and industrial assets including intangible assets) amounted to €16.8 million at December 31, 2022. Russian activities accounted for less than 1% of the Group's revenue before the start of the war in Ukraine. Activity in Russia was stopped from April and partially resumed from the end of June 2022.

As of December 31, 2022, the Group has written down its Russian assets by €12.5 million (including - €2.1 million on the goodwill of "DSK Plastic Omnium BV") to take into account the risk incurred on assets related to contracts canceled by customers who ceased their activity in Russia.

2.1.3. Asset impairment tests

Annual impairment tests were carried out on intangible assets in progress, including goodwill, in order to verify that they are still recognized at a value that does not exceed their recoverable amount.

The Group reviewed impairment indicators across all industrial sites and intangible assets, as well signs indicating a recovery in the value of assets that had been impaired in previous years. Impairment tests were carried out where appropriate.

The tests were carried out on the basis of forecast data from the Group's medium-term plans finalized in November 2022, drawn up for the period 2023-2027.

The main assumptions used in drawing up the 2023-2027 strategic plan are as follows:

• taking into account the forecasts made by S& P Global Mobility and the Group's customers in terms of changes in the "mix" of vehicle engines, i.e. the proportion of diesel, gasoline, electric and hybrid engines in global production, as well as regulatory changes, so as to integrate changes in environmental factors and risks related to climate change;
• the volume forecasts received from car manufacturers, discounted where applicable depending on the history and knowledge of each program and in relation to disparities and country specificities;
• steadily rising inflation over 2023 at least, with a mitigated impact on profitability thanks to continued improvements in productivity and operational efficiency;
• carbon neutrality for scopes 1 and 2 by 2025, taking into account the necessary investments at entity level; these investments are insignificant across the Group.

The discount rate (WACC) used in 2022 was 9.5%; it is adjusted if necessary to take into account country specificities.

The perpetual growth rate used in determining the terminal value was set at 1.5%.

During the financial year, the tests and analysis carried out did not lead to the recognition of additional impairment. A reversal of nearly €10 million of the 2020 impairment on the industrial assets of the Indian subsidiary of the IES Division was recorded over the period, reflecting the strong development expected of this entity over the coming years.

It should be noted that the results of the impairment tests carried out on the "Industries" and "Modules" segments show a very significant positive difference between the recoverable value and the amount of the assets tested. Thus, only unreasonable assumptions relating to the main assumptions of the long-term growth rate, the discount rate and the operating margin rate could call into question the test results.

As indicated above, regulatory changes are taken into account in the Group's strategic plan as well as in the review of impairment indicators carried out as part of the impairment tests. Thus the consequences of the vote of the European Parliament in favor of the ban, from 2035, of the sale of new gasoline or diesel vehicles in Europe have been analyzed.

Given the current investment policy, the dates of commissioning of industrial sites and assets and the depreciation periods applied (three to ten years maximum for industrial equipment), the net value of the industrial assets concerned by this regulatory change is being monitored particularly closely to ensure that it is, at all times, in line with future operating forecasts.

As indicated above, regulatory changes are taken into account in the Group's strategic plan as well as in the review of impairment indicators carried out as part of the impairment tests. Thus the consequences of the vote of the European Parliament in favor of the ban, from 2035, of the sale of new gasoline or diesel vehicles in Europe have been analyzed.

Given the current investment policy, the dates of commissioning of industrial sites and assets and the depreciation periods applied (three to ten years maximum for industrial equipment), the net value of the industrial assets concerned by this regulatory change is being monitored particularly closely to ensure that it is, at all times, in line with future operating forecasts.

2.1.4. Deferred tax assets

The Group's tax position in 2022 was analyzed by taking into account production stoppages following the shortage of semiconductors and components at manufacturers, the effects of high inflation, and in particular, the increase in raw material and energy prices, and the persistent consequences of the Covid-19 health crisis, in line with the assumptions used 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 impacts on the recognition of deferred tax assets over the last two fiscal years are as follows:

• a net impairment of -€38.5 million, for the 2022 fiscal year; and
• a net impairment of -€22.4 million for the 2021 fiscal year.

Impacts over 2022 are explained in Note 4.8 "Income tax".

2.2. Other significant events of the period

2.2.1. Changes in the share capital of Compagnie Plastic Omnium SE

2.2.1.1. Share capital reduction by Compagnie Plastic Omnium SE by cancellation of treasury shares as of September 1, 2022

At its meeting of July 20, 2022, the Board of Directors of Compagnie Plastic Omnium SE decided to cancel 1,600,000 treasury shares (1.08% of the share capital) effective September 1, 2022.

Compagnie Plastic Omnium SE's share capital, was reduced from 147,122,153 shares to 145,522,153 shares with a par value of €0.06, i.e. an amount of €8,731,329.18. See Note 5.2.1.1 "Share capital of Compagnie Plastic Omnium SE".

This transaction increases the holding company Burelle SA's stake in Compagnie Plastic Omnium SE from 59.35% to 60.01%.

2.2.2. Group acquisitions taking effect during the second half of 2022 and operational organization

With the acquisitions of the second half of 2022, the Group is preparing to roll out its development strategy in new markets.

All of the acquisitions described below were financed from the Group's available liquidities (see Note 5.1.9 "Cash and cash equivalents"), without any drawdowns on confirmed bank credit lines (see Note 5.2.6.6 "Confirmed medium-term credit lines").

2.2.2.1 : Acquisition by Plastic Omnium of the final third of HBPO GmbH from Hella, bringing the Group's stake to 100%

On July 28, 2022, Plastic Omnium signed an agreement to purchase the final one-third interest of HBPO GmbH held by Hella, for €290 million, giving it a 100% stake. The acquisition was completed on December 12, 2022 after approval by the regulatory authorities.

This additional acquisition has no impact on the control exercised by the Compagnie Plastic Omnium Group over HBPO. HBPO has been fully consolidated in Plastic Omnium's financial statements since the second half of 2018.

The recognition in the financial statements at December 31, 2022 is as follows:

• in the income statement: recognition of the non-controlling interests in HBPO for their share in the income for the period until the date of purchase by Plastic Omnium of their stake on December 12, 2022. See Note 4.9 "Net profit (loss) attributable to non-controlling interests";
• on the balance sheet: reclassification of non-controlling interests in Shareholders' equity attributable to owners of the parent and allocation of the acquisition price to Shareholders' equity attributable to owners of the parent. The impact of the purchase of the minority interests in HBPO on Shareholders' equity attributable to owners of the parent is a decrease of €236.9 million in shareholders' equity.

2.2.2.2 : Acquisition of two lighting businesses

Two major complementary acquisitions to offer a complete range of automotive lighting products:

2.2.2.2.1 : Acquisition by Plastic Omnium of Automotive Lighting Systems GmbH (AMLS Osram) from the ams Osram group on July 1, 2022

The Plastic Omnium Group signed an agreement with the Munich-based ams Osram group on March 25, 2022, to acquire 100% of AMLS Osram (Automotive Lighting Systems GmbH), a German multinational automotive lighting player, for an enterprise value of €65 million.

AMLS Osram provides a portfolio of high-tech products to a global customer base, covering the key areas of front lighting, interior lighting, advanced projection solutions and body lighting, satisfying new trends in styling, safety and electrification. The complementary technology brick provided by AMLS Osram should give the Plastic Omnium Group leading-edge expertise in lighting systems, electronics and software to develop innovative intelligent lighting solutions for the automotive industry.

• Revenue of €148 million in 2021;
• Manufacturing at five locations in the United States, Europe and China;
• 775 people, including 120 in R&D.

The acquisition closed on July 1, 2022 following the approval of antitrust authorities. The AMLS Osram entities are consolidated according to the full consolidation method from July 1, 2022.

2.2.2.2.2 : Acquisition by Plastic Omnium of Varroc Lighting Systems (VLS) from Varroc Engineering Limited (Maharashtra, India) on October 6, 2022

On April 29, 2022, the Plastic Omnium Group entered into an agreement with Varroc Engineering Limited (Maharashtra, India) to acquire its automotive lighting business, Varroc Lighting Systems (VLS) in Europe, the Americas and North Africa, as well as the Pune R&D unit in India.

• Annual revenue amounted to approximately €0.8 billion in 2021;
• Eight plants with balanced locations in cost-competitive countries;
• 6,489 people, including 800 R&D employees based in eight dedicated centers.

Varroc Lighting Systems has a broad product portfolio, which includes advanced lighting solutions for headlights and tail lights, innovative technologies in the development of optical systems and electronic control and lighting software. Varroc Lighting Systems thus has strong engineering capabilities to meet the requirements of active safety lighting, style and electrification.

Varroc Lighting Systems brings a balanced global industrial presence, strong engineering expertise and a strong portfolio of products and customers.

The transaction was completed on October 6, 2022, following authorization by antitrust authorities and other usual regulatory approvals, for an enterprise value of €520 million. The VLS entities are consolidated according to the full consolidation method from October 6, 2022.

2.2.2.3 : Acquisition by Plastic Omnium of the "Actia Power" division from the Actia Group on August 1, 2022

On June 27, 2022, the Plastic Omnium Group signed an agreement with the Actia Group to acquire 100% of the Actia Power division for an enterprise value of €52.5 million.

Actia Power specializes in the design and manufacture of on-board batteries, power electronics and electrification systems intended primarily for the electric mobility of trucks, buses and coaches, trains and construction machinery. It employs around 200 people in France, Germany, the United Kingdom and the United States, with 2021 revenue of €22 million.

The transaction was finalized on August 1, 2022 following authorization by antitrust authorities and other usual regulatory approvals. The Actia Power entities are consolidated according to the full consolidation method from August 1, 2022.

As of December 31, 2022, the "Actia Power" business is part of "Clean Energy Systems" (CES).

2.2.2.4. Impacts of the new AMLS Osram, Actia Power and VLS acquisitions on the Group's financial statements

The notes below present the key data for the acquisitions, the treatments as well as the impacts on the Group's financial statements.

2.2.2.4.1. Impacts of the new AMLS Osram, Actia Power and VLS acquisitions on the Group's financial statements

The key figures of the Plastic Omnium Group's new acquisitions are summarized below:

Summary of some key information on entities acquired			Actia Power	VLS	Group Total
Number of sites / Plants	In units	2	2	8	12
Number of R&D centers	In units	1	3	8	12
Number of legal entities	In units	4	4	8	16
Registered headcount (permanent and fixed-term contracts)	In units	775	207	6,489	7,471
Total headcount (including temporary employees)	In units	847	236	7,385	8,468
Sales of the full year 2021 - fiscal year before the acquisition year	In thousands of euros (+/-)	148,000	22,000	800,000	970,000
0 Net equity acquired (before acquisition price allocation)	0 In thousands of euros	27,000	-20,576	56,420	62,844

2.2.2.4.2. Acquisition price of AMLS Osram, Actia Power and VLS

Information on the purchase price is as follows:

In thousands of euros	AMLS Osram	Actia Power	VLS
Enterprise value	65,000	52,500	520,000
Price of acquisitions paid by cash in the financial statements at December 31, 2022	23,961	17,164	69,577
Agreement on price reduction for which repayment will take place in 2023	-12,915
Net acquisition price in the financial statements at December 31, 2022	11,046

2.2.2.4.3. Consolidation of AMLS Osram, Actia Power and VLS in the financial statements of the Plastic Omnium Group and allocation of acquisition prices

The Group's acquisitions, VLS, AMLS Osram, Actia Power, are accounted for in accordance with IFRS 3 "Business combinations".

All the entities acquired are under exclusive control and consolidated according to the full consolidation method from the respective dates of each takeover, i.e.:

• July 1, 2022 for AMLS Osram, therefore six months of activity from July to December 2022;
• August 1, 2022 for Actia Power, therefore five months of activity from August to December 2022; and
• October 6, 2022 for VLS, therefore almost three months of activity from October to December 2022.

The recognition of the assets acquired and liabilities assumed on the basis of the fair values on the respective dates as provided above, is made in the financial statements as at December 31, 2022 on the basis of initial estimates that will be finalized within the 12 months following the respective acquisition dates.

The analyses and work to be carried out in order to finalize the opening balance sheet are significant, in particular for VLS due to the acquisition date being relatively close to the closing date and could lead to significant changes to the provisional opening balance sheets. The 2022 income statement therefore does not include the effects of the final adjustments to the opening balance sheet.

The main adjustments to the provisional opening balance sheets concern in particular:

• technologies:
  • o "AMLS Osram" valued respectively for €16 million and amortized over 10 years; and
  • o "Actia Power" valued respectively for €4.5 million and amortized over 7 years;
• intangible assets and property, plant and equipment, mainly the downward adjustment of the non-current assets of the American subsidiary "AMLS Osram" for €17.6 million;
• WCR (working capital items) such as inventories, related trade receivables and payables;
• provisions for risks, charges, contingent liabilities and other risks;
• provisions for onerous contracts;
• deferred tax liabilities and assets related to the above adjustments.

Amortization expenses for these "Technology" intangible assets are recognized in Operating margin. See Note 4.4 "Amortization of intangible assets acquired".

In order to improve the relevance of the information published and the assessment of the Plastic Omnium Group's operating performance for the 2022 fiscal year, exceptional disbursements in the amount of €147.4 million unrelated to the normal activity of the VLS entities since their takeover by Plastic Omnium have been identified. The purpose of these exceptional disbursements was to settle liabilities in the opening balance sheet of VLS. In addition, the free cash-flow of the Group's historical scope (excluding the AMLS Osram, Actia Power and VLS acquisitions) amounted to €289 million.

As of December 31, 2022, provisional Goodwill after taking into account deferred taxes is presented in the acquisition price allocation table below.

Allocation of "AMLS Osram" - "Actia Power" - "VLS" business acquisition costs
a In thousands of euros	AMLS Osram	Actia Power	VLS	Total Plastic Omnium Group
Equity acquired	27,000	-20,576	56,420	62,844
Impairment of intangible assets and property, plant and equipment	-17,417			-17,417
Provisions for risks, expenses, contingent liabilities and other risks	-1,479	-286		-1,765
Working capital items	-18,601	-761	-8,823	-28,185
Provisions for onerous contracts		-2,165		-2,165
Other			-814	-814
Intangible asset : technology(*)	16,000	4,500		20,500
Deferred taxes	-4,249	-1,400		-5,649
Equity acquired (after adjustments)	1,254	-20,688	46,783	27,349
(1) Goodwill	9,792	37,851	22,761	70,404
Allocation of the acquisition price presented at December 31, 2022	11,046	17,164	69,544	97,753
Deferred tax rate related to the recognition of "Technology"	30.00%	31.11%

(1) The acquisitions of AMLS Osram, Actia Power and VLS resulted in the recognition of Goodwill. See the Note 5.1.1 related to the Goodwill in the notes of the balance sheet.

The definitive accounting of these business combinations will be finalized within the 12 months following the acquisition dates, namely on July 1, 2023 for "AMLS Osram", August 1, 2023 for "Actia Power" and October 6, 2023 for "VLS".

2.2.2.4.4. Provisional opening balance sheets of AMLS Osram, Actia Power and VLS in the Group's financial statements

Opening balance sheets for AMLS Osram at July 1, 2022, Actia Power at August 1, 2022 and VLS at October 6, 2022 in the Plastic Omnium Group financial statements are presented in the table below.

Provisional opening balance sheets after taking into account the provisional adjustments mentioned in Note 2.2.2.4.3 "Accounting treatment of AMLS Osram, Actia Power and VLS in the financial statements of the Plastic Omnium Group and allocation of acquisition prices" for the parts integrated into the Plastic Omnium Group, are presented in the table below. In accordance with IFRS 3, these balance sheets will be finalized within the 12 months following the respective acquisition dates, i.e. AMLS Osram on July 1, 2023, Actia Power on August 1, 2023 and VLS on October 6, 2023.

		AMLS Osram "Automotive Lighting Systems GmbH"			"Actia Power"			VLS	"Varroc Lighting Systems"	Total in the Group consolidated financial statements
		July 1, 2022			August 1, 2022			October 6, 2022		December 31, 2022
Consolidation percentage	100%	100%	100%	100%	100%	100%	100%	100%	100%
In thousands of euros	Balance Sheet before the allocation of acquisition price	Allocation of the acquisition price	Opening Balance Sheet	Balance Sheet before the allocation of acquisition price	Allocation of the acquisition price	Opening Balance Sheet	Balance Sheet before the allocation of acquisition price	Allocation of the acquisition price	Opening Balance Sheet	Total contributions of the opening balance sheets in the Group's consolidated financial statements
ASSETS
Goodwill Other intangible assets "Technology" intangible asset Other intangible assets Property, plant and equipment Other non-current financial assets Deferred tax assets	- 3,854 - 3,854 19,760 - 1,407	9,792 16,000 16,000 - - - -	9,792 19,854 16,000 3,854 19,760 - 1,407	- 4,902 - 4,902 6,142 2 1,423	37,851 4,500 4,500 - - - -	37,851 9,402 4,500 4,902 6,142 2 1,423	- 83,095 - 83,095 381,876 1,728 29,509	22,761 - - - - - -	22,761 83,095 - 83,095 381,876 1,728 29,509	70,404 112,351 20,500 91,851 407,778 1,730 32,339
TOTAL NON-CURRENT ASSETS	25,021	25,792	50,813	12,469	42,351	54,820	496,208	22,761	518,969	624,602
Inventories Trade receivables Other receivables Other financial assets and financial receivables Cash and cash equivalents	35,630 27,120 13,534 232 33,143	- - - - -	35,630 27,120 13,534 232 33,143	12,387 3,836 5,095 25,690 1,817	- - - - -	12,387 3,836 5,095 25,690 1,817	96,927 212,647 40,218 -249 24,419	- - - - -	96,927 212,647 40,218 -249 24,419	144,944 243,603 58,847 25,673 59,379
TOTAL CURRENT ASSETS	109,659	-	109,659	48,825	-	48,825	373,962	-	373,962	532,446
TOTAL ASSETS	134,680	25,792	160,472	61,294	42,351	103,645	870,170	22,761	892,931	1,157,048
SHAREHOLDERS' EQUITY AND LIABILITIES
Consolidated reserves	-9,947	20,992	11,046	-23,788	40,951	17,164	46,783	22,761	69,544	97,753
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT	-9,947	20,992	11,046	-23,788	40,951	17,164	46,783	22,761	69,544	97,753
Attributable to non-controlling interests TOTAL SHAREHOLDERS' EQUITY	- -9,947	- 20,992	- 11,046	- -23,788	- 40,951	- 17,164	- 46,783	- 22,761	- 69,544	- 97,753
Non-current borrowings and financial debt Non-current finance lease debt Provisions for pensions and other post-employment	- 1,990	- -	- 1,990	849 1,417	- -	849 1,417	17 82,170	- -	17 82,170	866 85,577
benefits Provisions Non-current Government grants	-187 210 -	- - -	-187 210 -	221 2,666 107	- - -	221 2,666 107	10,323 2,809 5,062	- - -	10,323 2,809 5,062	10,357 5,685 5,169
Deferred tax liabilities	-	4,800	4,800	300	1,400	1,700	707	-	707	7,207
TOTAL NON-CURRENT LIABILITIES	2,013	4,800	6,813	5,560	1,400	6,960	101,088	-	101,088	114,861
Bank overdrafts Current borrowings and financial debt Current finance lease debt	- 94,549 991	- - -	- 94,549 991	- 61,240 569	- - -	- 61,240 569	- 195,853 7,938	- - -	- 195,853 7,938	- 351,642 9,498
Provisions for liabilities and charges Trade payables Other operating liabilities TOTAL CURRENT LIABILITIES	343 26,847 19,884 142,614	- - - -	343 26,847 19,884 142,614	3,657 8,732 5,324 79,522	- - - -	3,657 8,732 5,324 79,522	6,670 345,712 166,039 722,299	- - - -	6,670 345,712 166,039 722,299	10,670 381,291 191,247 944,435
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	134,680	25,792	160,472	61,294	42,351	103,645	870,170	22,761	892,931	1,157,048
Gross debt	-97,298	-	-97,298	-38,383	-	-38,383	-284,499	-	-284,499	-420,180
Net cash and cash equivalents	33,143	-	33,143	1,817	-	1,817	24,419	-	24,419	59,379
Net debt	-64,155	-	-64,155	-36,566	-	-36,566	-260,080	-	-260,080	-360,801

2.2.2.4.5. Contribution of AMLS Osram, Actia Power and VLS to the Group's 2022 results

The contribution of the AMLS Osram, Actia Power and VLS businesses since their respective acquisition dates, i.e., July 1, 2022, August 1, 2022, and October 6, 2022, corresponding either to six months, five months or three months of activity depending on the date of the start of consolidation in the 2022 consolidated financial statements, is presented below:

			2022 - Consolidated Financial Statements
	Plastic Omnium Group excluding "AMLS Osram Actia Power-VLS Activities"		"AMLS Osram-Actia Power Total Plastic Omnium Group VLS activities"
In thousands of euros	Amounts	%	Amounts	%	Amounts	%
Consolidated revenue	8,229,391	100.0%	308,719	100.0%	8,538,110	100.0%
Operating Magin	416,333	5.1%	-52,458	-17.0%	363,875	4.3%

2.2.2.4.6. Plastic Omnium Group Proforma information

Proforma information is presented to illustrate the financial statements of the Plastic Omnium Group with the full-year AMLS Osram, Actia Power and VLS acquisitions, as if the acquisitions had all taken place at January 1, 2022. This information corresponds to a best estimate, unaudited, based on the accounts submitted by the sellers.

The full-year figures on the main usual aggregates of the Group's income statement would be approximately as follows:

• Consolidated revenue: +€9,369 million
• Operating margin : +€ 228 millions

2.2.3. Follow-up of changes in the scope of consolidation in 2021

2.2.3.1 : Finalization of the allocation of the acquisition price of the Group's 40% stake in the creation of the "EKPO Fuel Cell Technologies" joint venture

As part of the subscription to a capital increase carried out by EKPO Fuel Cell Technologies, a leading company in the development and series production of fuel cells, the Plastic Omnium Group acquired 40% of the shares for €100 million on March 1, 2021, to accelerate growth in low-carbon mobility. Its partner ElringKlinger holds 60%. Please refer to Note 2.2.2.1 to the Consolidated financial statements of December 31, 2021.

The allocation of the acquisition price to the acquired assets and liabilities identified at December 31, 2021 a "Technology" intangible asset, valued at €131 million (i.e. €52 million for the share held by the Plastic Omnium Group), resulting in a €117 million revaluation of the intangible assets recognized by the entity.

At December 31, 2021, the 40% stake held by the Group, recognized in "Investments in associates and joint ventures", included goodwill of €16.9 million, after taking into account a deferred tax liability of €35.1 million related to this intangible asset.

The opening balance sheet was finalized within 12 months of the acquisition, i.e. on March 31, 2022. This finalization resulted in a few adjustments that impacted the Net Position by -€1.2 million (Group share at -€0.5 million).

At December 31, 2022:

• The 40% stake held by the Group recognized in "Investments in associates and joint ventures" includes goodwill of €17.4 million;
• In addition, in the first half of 2022, an amount of €30 million for the acquisition price of the shares of EKPO Fuel Cell Technologies" (see Note 2.2.2.1.1 "Acquisition price" to the Consolidated financial statements of December 31, 2021) was paid by the Group as planned in the payment schedule. The outstanding balance at December 31, 2022 amounts to €40 million, of which €20 million will be due in 2023 and 2024 respectively.

2.2.3.2 : Finalization of the allocation of the acquisition price of ElringKlinger Fuel Cell Systems Austria GmbH (EKAT)

On March 1, 2021, the Plastic Omnium Group acquired all of the shares in the Austrian subsidiary of ElringKlinger, ElringKlinger Fuel Cell Systems Austria GmbH (EKAT), a specialist in integrated hydrogen systems, to complete its global hydrogen offering. The acquisition price was €13.4 million.

ElringKlinger Fuel Cell Systems Austria GmbH (EKAT) was renamed "Plastic Omnium New Energies Wels GmbH".

The opening balance sheet was finalized on March 1, 2022 without any adjustment compared to December 31, 2021.

The final opening balance sheets as well as the allocation of the acquisition prices of the two entities are presented below:

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 finalized at March 1, 2022 and the allocation of the acquisition price	Share of equity of the Group in the opening balance sheet finalized at March 1, 2022 and allocation of the acquisition price	Equity acquired in the opening balance sheet finalized at March 1, 2022	Total of the Group acquisitions finalized at March, 1, 2022
Calculation basis	100.00%	40.00%	100.00%
Deferred tax rate	30.00%	30.00%	25.00%
Equity acquired	25,905	10,362	526
Other adjustments	2,137	855	-
Deferred taxes related to the other adjustments	-3,355	-1,342	-
Intangible assets : technology	116,975(1)	46,790	8,816
Deferred taxes related to the Technology intangible asset	-35,093	-14,037	-2,204
Equity (after adjustments) (A)	106,569	42,628	7,138	49,766
Contribution of Plastic Omnium Group (B)	100,040	40,016		40,016
Equity after capital increase (C) = (A + B)	206,610	82,644
Goodwill (D) = (E - C)	43,490	17,396(2)	6,311(3)	23,707(4)
Total acquisition price (E)	250,100	100,040	13,449	113,489

(1) This amount comprises a revaluation of €117 million recognized as part of the allocation of the acquisition price.

(2) This goodwill is a component of the value of the EKPO Fuel Cell Technologies investments accounted for 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 broken down in associates and joint ventures for €17,396 thousand and for €6,311 thousand in "Goodwill" in the Group consolidated balance sheet. See Notes 5.1.1 and 5.1.4.

2.2.4. Follow-up of equity investments and investments in venture capital companies and start-ups specializing in future mobility solutions

2.2.4.1. Group investment in the French company Verkor, a specialist in the manufacture of batteries for future mobility

On February 22, 2022, the Group subscribed to €20 million in convertible bonds (the total issue size is €200 million) in the Grenoble-based company Verkor, a specialist in the production of high-efficiency, low-carbon battery cells.

The convertible bonds carry interest at 5%, capitalized with reimbursement due on June 30, 2024 in the event that the Group chooses reimbursement rather than conversion into shares.

The investment is complemented by an industrial partnership that will give Verkor and the Plastic Omnium Group the means to develop production and marketing capabilities for electric battery modules and packs for individual and commercial vehicles and for stationary energy storage.

The investment is recognized in the balance sheet under "Investments in associates and joint ventures, nonconsolidated securities and convertible bonds".

2.2.4.2. Equity investment by the Group in the seed fund Fonds d'Amorçage Industriel Métropolitan S.L.P. (FAIM) for sustainable industry

During the first half of 2022, the Group invested in the Fonds d'Amorçage Industriel Métropolitain (FAIM). This is a venture capital-type Société de Libre Partenariat (SLP) of nearly €40 million, intended to promote the emergence of young innovative industrial companies that pollute less, consume less energy and create jobs.

The fund covers many industrial sectors such as clean energy, new materials, green chemistry, agri-food, smart textiles, mobility, etc.

The Group has committed €5 million for a period of 12 months from the first call for funds, extendable twice.

At December 31, 2022, the Group had paid €0.4 million. See Note 5.1.5.1 "Long-term investments in equities and funds".

2.2.4.3. Payment by Compagnie Plastic Omnium SE to AP Ventures funds during the fiscal year 2022

During the fiscal year 2022, 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 €4.7 million (equivalent to \$4.9 million).

The Group committed to investing \$30 million over the life of the fund. The Group's total payment amounted to €15.0 million (equivalent to \$16.0 million) at December 31, 2022 (see Note 5.1.5.1 "Long-term investments in equities and funds").

2.2.4.4. "Deltatech" Innovation and Research Center in Belgium in the process of being sold

Following the transfer to France in 2021 of its innovation and research activities previously located in Brussels, Belgium, the Group continued to use its site in Brussels for a very limited number of employees during the 2022 financial year and, in parallel, put the property up for sale.

The Group signed a preliminary sale agreement on December 22, 2022. As of December 31, 2022, the net carrying amount of the real estate complex, in the amount of €44.7 million, including land, a building, fixtures and fittings as well as office furniture, was reclassified to Assets held for sale in the balance sheet. Gains/losses on the disposal when finalized are not expected to be material.

2.2.4.5. Disposal of the CES Division's "Vigo Metal" business in Spain

As of December 31, 2022, the Group was in negotiations with two potential buyers to dispose of the CES Division's "Vigo Metal" business in Spain. The disposal is part of the Group's strategy to refocus its CES Division on the production of fuel and pollution control systems and on the development of innovative energy storage solutions for electric vehicles. The transaction involves assets and inventories with a total value of nearly €6 million.

The estimated amount of the sale led the Group to recognize a provision for expenses of approximately €2 million in the financial statements at December 31, 2022. See Note 4.6 "Other operating income and expenses".

On January 1, 2023, the Group sold its Vigo "Metal" business to the Spanish group Segura for €4 million.

2.2.5. Receipt during the period of a "carry-back" repayment in the United States

The Group received in 2022 from the tax authorities in the United States a repayment of the carry-back of €28.5 million (\$30 million) requested in 2021. See Note 5.1.7.3 "Other receivables".

2.2.6. Financing transactions

2.2.6.1. Completion of a "Schuldschein" private placement – Amount: €400 million

On May 24, 2022, the Group completed a "Schuldschein" private placement, without covenants, for €400 million (divided into six tranches of different maturities and interest rates) with mainly private investors (French, German, Swiss, Slovak) and the following characteristics:

• maturities: 3, 5 and 7 years
• fixed rate portion: €159 million
• floating rate portion: €241 million
• Information on financing rates is provided in the dedicated note on borrowings (5.2.6.2)

In parallel with this transaction, the Group repaid €141 million on the Schuldschein of June 16, 2016 issued for a total amount of €300 million, which is due on June 17, 2023.

For these two transactions, see Notes 5.2.6.2 "Borrowings: private placement notes and bonds" and 5.2.6.7 "Reconciliation of gross and net financial debt".

2.2.6.2. Change in Negotiable European Commercial Paper (Neu-CP) issuance during the fiscal year of 2022

During the fiscal year 2022, the Group increased its "Neu-CP" program. At December 31, 2022, it amounted to €508.5 million compared to €322.5 million at December 31, 2021.

The terms of these issuances are provided in Note 5.2.6.4 "Short-term borrowings: issuance of 'Negotiable European commercial paper (Neu-CP)".

See also Note 5.2.6.7 "Reconciliation of gross and net financial debt".

2.2.7. Group subsidiaries in hyperinflationary regions and impacts on the Group's financial statements

2.2.7.1. Impacts of hyperinflation in Argentina and Turkey on the Group's financial statements

Impacts of hyperinflation in Argentina:

After reaching 48.4% in 2021, according the CPI (consumer price index) inflation in Argentina in 2022 is 72.4%.

The Argentine peso has fallen as follows:

• Basis of comparison Average rates: -17.9% FY 2022 versus FY 2021
• Basis of comparison Closing rate: -38.4% at December 31, 2022 compared to December 31, 2021

At December 31, 2022, the assets of the two subsidiaries Plastic Omnium Auto Inergy Argentina SA (Clean Energy Systems) and Plastic Omnium Argentina (Intelligent Exterior Systems) were revalued. At December 31, 2022, the impact on net profit was +€2.4 million.

Impacts of Turkish hyperinflation:

Starting in 2021 (19.6% over the year), inflation in Turkey reached 64.3% as of December 31, 2022 compared to the same period the previous year, moving Turkey onto the list of hyper-inflationary countries from the first half-year of 2022.

The reduction in policy rates from 19% to 14% in the last quarter of 2021 contributed in part to the decline in the exchange rate of the Turkish lira, which, against the euro, aggravated by the impacts of the war in Ukraine, has changed as follows:

• December 31, 2020: TRL 9.11 for EUR 1 at the closing rate and TRL 8.04 for EUR 1 at the average rate
• December 31, 2021: TRL 15.23 for EUR 1 at the closing rate and TRL 10.47 for EUR 1 at the average rate
• December 31, 2022: TRL 19.96 for EUR 1 at the closing rate and TRL 17.38 for EUR 1 at the average rate i.e. over the two periods 2021 versus 2022, a devaluation of -23.7% at the closing rate compared to a devaluation of -39.8% at the average rate.

IAS 29 "Financial reporting in hyperinflationary economies" therefore applies to B.P.O. AS, the Group's only Turkish entity, in which the functional currency is the Turkish lira. This entity is 50%-owned (Intelligent Exterior Systems Division), and consolidated using the equity method. The impact of the application of IAS 29 was -€6.3 million as of December 31, 2022 and represents -€3.1 million for the Plastic Omnium Group's share in B.P.O. AS.

The reference indices used for accounting are the CPI (consumer price index).

The share of B.P.O. AS's income and its weight in the Group's operating margin over recent years does not exceed 2% and the weight of the asset (investment in associates and joint ventures) in the Plastic Omnium Group's total balance sheet does not exceed 0.1%.

3. SEGMENT INFORMATION

3.1. Information by operating segment

The Group uses the concept "Economic revenue" for its operational management, which corresponds to the consolidated revenue of the Group and its joint ventures and associates at their percentage stake: Yanfeng Plastic Omnium, the Chinese leader in exterior body parts, SHB Automotive Modules, the leading Korean company in front-end modules, B.P.O. AS, a major player in the Turkish exterior equipment market, and EKPO Fuel Cell Technologies, a specialist in the development and series production of fuel cells for hydrogen mobility.

The change in definition is intended to take into account the Group's development model, which includes additional partnerships in certain business segments.

The Group organizes its business into two operating segments (see Note "Presentation of the Group"): "Industries" and "Modules".

You are reminded that the Lighting division, newly created to host the lighting activities of the AMLS Osram and VLS company groups acquired in the second half of 2022, is part of the Industries segment.

The columns in the tables below show the amounts by segment. The "Unallocated items" column groups together intersegment 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.

3.1.1. Income statement by operating segment

		2022
In thousands of euros	Industries	Modules	Unallocated items (2)	Total
Economic revenue (1)	6,896,455	2,580,434	-	9,476,889
Including revenue from joint ventures and associates consolidated at the Group's percentage stake	705,478	233,302	-	938,779
Consolidated revenue before inter Segments' eliminations	6,243,554	2,351,564	(57,008)	8,538,110
Inter-segment revenue	(52,577)	(4,431)	57,008	-
Consolidated revenue	6,190,977	2,347,133	-	8,538,110
% of segment revenue - Total	72.5%	27.5%	-	100.0%
Operating margin before amortization of intangible assets acquired and before share of profit (loss) of associates and joint ventures	277,591	57,378	-	334,969
% of segment revenue	4.5%	2.4%	-	3.9%
Amortization of intangible assets acquired	(4,932)	(13,029)	-	(17,962)
Share of profit (loss) of associates and joint ventures	43,240	3,629	-	46,868
Operating margin	315,898	47,977	-	363,875
% of segment revenue	5.1%	2.0%	-	4.3%
Other operating income Other operating expenses	21,212 (84,008)	- (1,701)	- -	21,212 (85,709)
% of segment revenue	-1.0%	-0.1%	-	-0.8%
Financing costs				(67,073)
Other financial income and expenses				5,395
Profit (loss) from continuing operations before income tax and after share in associates and joint ventures				237,700
Income tax				(60,196)
Net profit (loss)				177,504
		2021
In thousands of euros	Industries	Modules	Unallocated items (2)	Total
Economic revenue (1)	5,826,435	2,190,720	-	8,017,155
Including revenue from joint ventures and associates consolidated at the Group's percentage stake	586,802	197,042	-	783,844
Consolidated revenue before inter Segments' eliminations	5,265,277	1,996,827	(28,794)	7,233,311
Inter-segment revenue	(25,645)	(3,149)	28,794	-
Consolidated revenue	5,239,632	1,993,678	-	7,233,311
% 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	237,450	42,209	-	279,659
% of segment revenue	4.5%	2.1%	-	3.9%
Amortization of intangible assets acquired	(6,675)	(13,029)	-	(19,704)
Share of profit (loss) of associates and joint ventures	40,171	2,632	-	42,803
Operating margin	270,946	31,812	-	302,758
% of segment revenue	5.2%	1.6%	-	4.2%
Other operating income	23,438	-	-	23,438
Other operating expenses	(77,179)	(2,656)	-	(79,835)
% of segment revenue	-1.0%	-0.1%	-	-0.8%
Financing costs				(48,617)
Other financial income and expenses Profit (loss) from continuing operations before income tax and after share in				(1,897) 195,847
associates and joint ventures Income tax				(60,269)

(1) Economic revenue corresponds to revenue of the Group and its joint ventures and associates consolidated at their percentage of ownership.

(2) "Unallocated items" corresponds to intra-group eliminations and amounts that are not allocated to a specific segment (for example, holding company activities). This column is included to enable segment information to be reconciled with the consolidated financial statements.

3.1.2. Balance sheet aggregate data by operating segment

December 31, 2022
In thousands of euros
Net amounts	Industries	Modules	Unallocated items	Total
Goodwill	572,629	527,726	-	1,100,355
Intangible assets	536,253	100,937	5,167	642,357
Property, plant and equipment	1,794,113	138,354	33,646	1,966,113
Investment property	-	-	30	30
Inventories	779,177	77,416	-	856,592
Trade receivables	854,943	149,740	18,578	1,023,261
Other receivables	402,706	36,191	60,155	499,052
Financial receivables (C)	754	-	-	754
Current accounts and other financial assets (D)	-1,594,446	86,493	1,520,586	12,633
Long-term investments in equity instruments and funds - FMEA 2 (F)	16,188	-	60,110	76,298
Hedging instruments (E )	-	549	10,603	11,152
Net cash and cash equivalents (A) (1)	228,831	16,130	315,642	560,603
Segment assets	3,591,148	1,133,536	2,024,517	6,749,201
Borrowings and financial debt (B)	371,054	64,607	1,894,302	2,329,963
Segment liabilities	371,054	64,607	1,894,302	2,329,963
Segment net financial debt = (B - A - C- D - E - F) (2)	1,719,728	-38,565	-12,639	1,668,524
December 31, 2021
In thousands of euros / Net amounts	Industries	Modules	Unallocated items	Total
Goodwill	499,146	527,726	-	1,026,872
Intangible assets	421,548	111,626	5,603	538,777
Property, plant and equipment	1,457,405	143,474	38,029	1,638,908
Investment property	-	-	30	30
Inventories	575,871	61,807	-	637,678
Trade receivables	587,072	137,047	10,158	734,277
Other receivables	264,249	34,781	55,365	354,395
Financial receivables (C)	3,000	-	-	3,000
Current accounts and other financial assets (D)	-955,443	2,468	962,369	9,394
Long-term investments in equity instruments and funds - FMEA 2 (F)	9,970	-	68,101	78,071
Hedging instruments (E)	-	-	91	91
Net cash and cash equivalents (A) (1)	101,102	78,387	701,883	881,372
Total segment assets	2,963,920	1,097,316	1,841,629	5,902,865
Borrowings and financial debt (B)	303,817	71,305	1,450,423	1,825,545
Segment liabilities	303,817	71,305	1,450,423	1,825,545

(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 5.2.6.1"Definition of debt instruments within the Group" and Note 5.2.6.7 "Reconciliation of gross and net financial debt".

3.1.3. Other information by operating segment

2022 Industries Modules Unallocated items Total In thousands of euros Acquisitions of intangible assets 141,522 17,754 1,680 160,956 Capital expenditure including acquisitions of investment property 196,201 20,180 3,081 219,461 2021 Industries Modules Unallocated items Total In thousands of euros Acquisitions of intangible assets 126,297 15,857 3,041 145,195 Capital expenditure including acquisitions of investment property 136,667 15,566 7,868 160,101

3.1.4. Revenue - Information by geographic region and country of sales

The breakdown of revenue by region is based on the location of the Plastic Omnium subsidiaries generating the sales.

2022			2021
In thousands of euros	Totals	%	In thousands of euros	Totals	%
Europe	4,594,006	48.3%	Europe	4,209,697	52.6%
North America	2,714,246	28.6%	North America	2,048,018	25.5%
Asia	1,825,595	19.2%	Asia	1,510,323	18.8%
South America	178,018	2.2%	South America	130,743	1.6%
Africa	165,025	1.7%	Africa	118,374	1.5%
Economic revenue	9,476,889	100%	Economic revenue	8,017,155	100%
Including revenue from joint ventures and associates at the Group's percentage stake	938,779		Including revenue from joint ventures and associates at the Group's percentage stake	783,844
Consolidated revenue	8,538,110		Consolidated revenue	7,233,311

associates at the Group's percentage stake	783,844

3.1.4.1. Information by sales region

3.1.4.2. Information for the top ten contributing countries

2022			2021
In thousands of euros	Totals	%	In thousands of euros	Totals	%
Germany	1,414,692	14.9%	Germany	1,301,199	16.2%
United States	1,340,218	14.1%	United States	1,007,388	12.6%
Mexico	1,273,922	13.4%	Mexico	971,107	12.1%
China	1,097,499	11.6%	China	939,244	11.7%
Slovakia	619,812	6.5%	Spain	606,190	7.6%
Spain	591,852	6.2%	Slovakia	540,038	6.7%
France	532,656	5.6%	France	510,006	6.4%
Korea	332,323	3.5%	United Kingdom	332,475	4.1%
United Kingdom	325,383	3.4%	Poland	281,629	3.5%
Poland	311,895	3.3%	Korea	270,278	3.4%
Other	1,636,637	17.3%	Other	1,257,601	15.7%
Economic revenue	9,476,889	100%	Economic revenue	8,017,155	100%
Including revenue from joint ventures and associates at the Group's percentage stake	938,779		Including revenue from joint ventures and associates at the Group's percentage stake	783,844
Consolidated revenue	8,538,110		Consolidated revenue	7,233,311

2022			2021
In thousands of euros	Totals	%	In thousands of euros	Totals	%
Germany	1,414,692	14.9%	Germany	1,301,199	16.2%
United States	1,340,218	14.1%	United States	1,007,388	12.6%
Mexico	1,273,922	13.4%	Mexico	971,107	12.1%
China	1,097,499	11.6%	China	939,244	11.7%
Slovakia	619,812	6.5%	Spain	606,190	7.6%
Spain	591,852	6.2%	Slovakia	540,038	6.7%
France	532,656	5.6%	France	510,006	6.4%
Korea	332,323	3.5%	United Kingdom	332,475	4.1%
United Kingdom	325,383	3.4%	Poland	281,629	3.5%
Poland	311,895	3.3%	Korea	270,278	3.4%
Other	1,636,637	17.3%	Other	1,257,601	15.7%
Economic revenue	9,476,889	100%	Economic revenue	8,017,155	100%
Including revenue from joint ventures and associates at the Group's percentage stake	938,779		Including revenue from joint ventures and associates at the Group's percentage stake	783,844
Consolidated revenue	8,538,110		Consolidated revenue	7,233,311

3.1.4.3. Information by car manufacturer

2022			2021
In thousands of euros	Totals	% of total automotive revenue	In thousands of euros	Totals	% of total automotive revenue
Volkswagen Group	2,492,834	26.3%	Volkswagen Group	2,093,680	26.1%
Stellantis	1,449,888	15.3%	Stellantis	1,340,715	16.7%
Mercedes-Benz	969,921	10.2%	Mercedes-Benz	850,188	10.6%
General Motors	839,748	8.9%	BMW	715,402	8.9%
BMW	770,845	8.1%	General Motors	563,159	7.0%
Total – main manufacturers	6,523,236	68.8%	Total – main manufacturers	5,563,144	69.4%
Other car manufacturers	2,953,654	31.2%	Other car manufacturers	2,454,011	30.6%
Total economic revenue	9,476,889	100.0%	Total economic revenue	8,017,155	100%
Including revenue from joint ventures and associates at the Group's percentage stake	938,779		Including revenue from joint ventures and associates at the Group's percentage stake	783,844
Total consolidated revenue	8,538,110		Total consolidated revenue	7,233,311

automotive revenue	In thousands of euros	Totals	% of total automotive revenue
	Including revenue from joint ventures and associates at the Group's percentage stake	783,844

3.2. Non-current assets by country

In thousands of euros	France	Europe excluding France	North America	Asia	South America	Other (2)	Total
December 31, 2022
Goodwill	251,125	751,724(1)	84,313	2,931	10,261	-	1,100,355
including translation adjustment	-	-	4,909	-	233	-	5,142
Intangible assets	111,900	301,407	132,225	66,578	15,540	14,707	642,357
Property, plant and equipment	258,907	790,362	497,438	261,451	32,540	125,415	1,966,113
including capital expenditure for the fiscal year	30,320	96,264	58,365	29,329	2,992	2,191	219,461
Investment property	30	-	-	-	-	-	30
Total non-current fixed assets	621,962	1,843,493	713,976	330,960	58,341	140,122	3,708,855

(1) The Group acquired AMLS Osram, Actia Power and VLS respectively on July 1, 2022 , on August 1, 2022 and October 6, 2022. See Note 2.2.2.2 in "Other significant events of the period".

(2) The "Other" region includes South Africa and Morocco.

In thousands of euros	France	Europe excluding France	North America	Asia	South America	Other (2)	Total
December 31, 2021
Goodwill	213,274	721,234 (1)	79,405	2,931	10,028	-	1,026,872
including translation adjustment	-	-	6,109	-	83	-	6,192
Intangible assets	89,594	243,859	114,850	68,753	11,702	10,020	538,777
Property, plant and equipment	260,394	625,703	442,376	247,931	19,872	42,634	1,638,908
including capital expenditure for the fiscal year	34,205	73,064	29,500	18,796	3,193	1,343	160,101
Investment property	30	-	-	-	-	-	30
Total non-current fixed assets	563,292	1,590,795	636,631	319,615	41,602	52,654	3,204,587

(1) The Group acquired Plastic Omnium New Energies Wels GmbH on March 1, 2021.

(2) The "Other" region includes South Africa and Morocco.

4. NOTES TO THE INCOME STATEMENT

4.1. Breakdown of Research and Development costs

The percentage of Research and Development costs is expressed in relation to the amount of revenue.

In thousands of euros	2022	%	2021	%
Research and Development costs after developments sold	-283,466	-3.3%	-245,438	-3.4%
Capitalized development costs	141,901	1.7%	128,550	1.8%
Depreciation of capitalized development costs	-153,985	-1.8%	-153,436	-2.1%
Research tax credit	14,460	0.2%	8,525	0.1%
Other (including grants and contributions received)	4,118	0.0%	3,751	0.1%
Research and Development costs	-276,972	-3.2%	-258,048	-3.6%

4.2. Cost of goods and services sold, development, selling and administrative costs

In thousands of euros	2022	2021
Cost of goods and services sold includes:
Material consumption (purchases and changes in inventory) (1)	-6,089,259	-4,941,022
Direct production outsourcing	-13,266	-11,829
Utilities and fluids	-101,803	-87,690
Salary and benefits	-826,384	-701,891
Other production costs	-263,230	-397,879
Depreciation and amortization	-288,919	-262,111
Provisions	2,401	-415
Total	-7,580,460	-6,402,837
Research and Development costs include:
Salary and benefits	-219,129	-194,098
Depreciation, amortization and provisions	-173,295	-174,673
Other	115,452	110,723
Total	-276,972	-258,048
Selling costs include:
Salary and benefits	-33,412	-28,008
Depreciation, amortization and provisions	-168	-341
Other	-16,068	-12,755
Total	-49,648	-41,104
Administrative costs include:
Salary and benefits	-191,129	-165,483
Other administrative expenses	-86,495	-67,964
Depreciation and amortization	-18,214	-18,427
Provisions	-223	211
Total	-296,061	-251,663

(1) Including charges and reversals of provisions for inventories amounting to:

· +€2,872 thousand in 2022

· +€4,612 thousand in 2021

4.3. Staff costs

In thousands of euros	2022	2021
Wages and salaries	-929,585	-791,816
Payroll taxes (1)	-274,187	-233,487
Non-discretionary profit-sharing	-17,582	-14,873
Share-based payments	-1,600	-2,086
Pension and other post-employment benefit costs	3,173	-4,520
Other employee benefits expenses	-50,272	-42,700
Total employee benefits expense excluding temporary staff costs	-1,270,053	-1,089,482
Temporary staff costs	-117,857	-93,198
Total employee benefits expenses	-1,387,910	-1,182,680

(1) This item includes social contributions on the new stock option subscription and/or free share award plans for an amount of -€62 thousand in 2022 and -€45 thousand in 2021 allocated to executive corporate officers.

See Notes 5.2.3 "Share-based payments" and 7.3.1 "Compensation paid to executives and other corporate officers".

4.4. Amortization of intangible assets acquired

This item corresponds mainly to:

• the amortization over six years of contractual customer relationships recognized on the takeover in July 2016 of the Faurecia Group Exterior Systems business, for which this is the final year of amortization;
• the amortization over seven years of contractual customer relationships and over 15 years for the brand recognized on the takeover of HBPO in July 2018;
• the amortization over seven years of the "Technology" intangible asset of the company Actia Power acquired on August 1, 2022 (see Note 2.2.2.3 in "Other significant events of the period");
• the amortization over 10 years of the "Technology" intangible asset of the company AMLS Osram acquired on July 1, 2022 (see Note 2.2.2.2.1 in "Other significant events of the period").

The "Technology" intangible asset of the Austrian company "Plastic Omnium New Energies Wels GmbH-EKAT" acquired on March 1, 2021 (see Note 2.2.3.2 "Finalization of the acquisition price of ElringKlinger Fuel Cell Systems Austria GmbH (EKAT)" in "Other significant events of the period" will be amortized over 12 years from the start of series production.

In thousands of euros	2022	2021
Amortization of brands	-547	-547
Amortization of contractual customer relationships	-16,347	-19,157
Amortization of intangible assets : Actia Power technology	-268	-
Amortization of intangible assets : AMLS Osram technology	-800	-
Total amortization of intangible assets acquired	-17,962	-19,704

4.5. Share of profit (loss) of associates and joint ventures

The YFPO and EKPO Fuel Cell Technologies joint ventures have been consolidated since March 1, 2021. The associates Chengdu Faway Yanfeng Plastic Omnium and Dongfeng Plastic Omnium Automotive Exterior have been included in all YFPO joint ventures.

Share of profit (loss) of associates and joint ventures breaks down as follows (please refer to Note 5.1.4 for "Equity investments in associates and joint ventures" in the balance sheet):

In thousands of euros	2022 % Interest	2021 % Interest	2022	2021
HBPO - SHB Automotive Modules(1)	50.00%	33.34%	3,629	2,632
JV Yanfeng Plastic Omnium and its subsidiaries - joint venture	49.95%	49.95%	45,955	40,039
B.P.O. AS - joint venture	49.98%	49.98%	2,101	3,574
EKPO Fuel Cell Technologies	40.00%	40.00%	-4,816	-3,442
Total share of profit (loss) of associates and joint ventures			46,868	42,803

(1) The entity HBPO - SHB Automotive was 33.34% owned by the Group until December 12, 2022, the date of acquisition by Plastic Omnium from Hella of the final third of its stake, bringing the Group's stake to 50 % as of this date.

See Note 2.2.2.1 in "Other significant events of the period".

4.6. Other operating income and expenses

In thousands of euros	2022	2021
Reorganization costs(1)	-16,355	-21,624
Impairment and provisions on non-current assets(2)	-5,268	-5,544
Provisions for litigations and expenses(3)	-6,255	-11,750
Foreign exchange gains and losses on operating activities(4)	-15,519	-10,573
Fees and expenses related to changes in the scope of consolidation (5)	-22,938	-8,919
Gains/Losses on disposals of non-current assets	3,356	-1,151
Other	-1,518	3,164
Total operating income and expenses	-64,497	-56,397
- of which total income	21,212	23,438
- of which total expense	-85,709	-79,835

At December 31, 2022

(1) Reorganization costs:

Reorganization costs mainly correspond to restructuring in the "Industries" segment in Germany, France and Belgium in particular the impacts related to the closure of the "Deltatech" innovation and research center (see Note 2.2.4.4 in « Other operations of the Period »).

(2) Impairment and provisions of non-current assets:

This item mainly includes:

• The reversal of the impairment on the industrial assets of the Indian subsidiary (IES Division) for +€9.9 million;
• The provision on the Russian entities for -€12.5 million (see Note 2.1.2 « War in Ukraine: Consequences on the Group's activity » in « Significant events of the Period »).
• The provision for the "Vigo Metal" assets in the amount of -€2.0 million (see Note 2.2.4.5 « Disposal of the CES Division's "Vigo Metal" business in Spain » in « Other significant events of the Period »).

(3) Provisions for litigation and expenses:

This item mainly includes provisions for disputes related to vehicle recalls with several car manufacturers.

(4) Foreign exchange gains and losses on operating activities:

Over the period, foreign exchange gains and losses on operating activities mainly concern the Argentine peso, Mexican peso and the Chinese renminbi (negative impacts).

(5) Fees and expenses related to changes in the scope of consolidation:

Fees related to acquisitions over the period.

At December 31, 2021

Please refer to the Consolidated financial statements at December 31, 2021 for details of transactions in the previous fiscal year.

4.7. Net financial income (expense)

In thousands of euros	2022	2021
Finance costs	-51,528	-34,163
Interest on lease liabilities(1)	-7,890	-7,072
Financing fees and commissions	-7,655	-7,382
Borrowing costs	-67,073	-48,617
Exchange gains or losses on financing activities	-8,631	6,414
Gains or losses on interest rate and currency hedges(2)	10,987	-8,701
Interest on post-employment benefit obligations	-1,475	-1,290
Other (3)	4,514	1,680
Other financial income and expenses	5,395	-1,897
Total	-61,678	-50,514

(1) See Notes 5.1.3 "Property, plant and equipment" and 5.2.6.7 "Reconciliation of gross and net financial debt".

(2) In 2022, this item includes an amount of +€11,184 thousand corresponding to the impact of currency hedges, compared to -€8,447 thousand in 2021. The Group does not have any interest rate instrument contracts. See Note 5.2.7.1.2 "Impact of unsettled foreign exchange hedges on net income and equity".

(3) In 2022, this item corresponds in part to the financial impact of hyperinflation in Argentina for +€2,5 million, compared to -€970 thousand for 2021.

4.8. Income tax

4.8.1. Tax expense recognized in the income statement

The tax expense breaks down as follows:

In thousands of euros	2022	2021
Current taxes on continuing activities	-79,856	-65,561
Current tax income/(expense)	-78,613	-56,995
Tax income/(expense) on non-recurring items	-1,243	-8,566
Deferred taxes on continuing activities	19,660	5,292
Deferred tax income/(expense) on timing differences arising or reversed during the period	20,508	6,998
Income/(expense) resulting from changes in tax rates or the introduction of new taxes	-848	-1,706
Tax income (expense) on continuing activities recorded in the consolidated income statement	-60,196	-60,269

4.8.2. Analysis of tax expense - Tax proof

Analysis of the tax expense includes the following:

	2022		2021
In thousands of euros		% (1)	Totals	% (1)
Consolidated loss (profit) on continuing activities before tax and share of profit (loss) of associates and joint ventures (A)	190,832		153,044
Tax rate applicable in France (B)	25.82%		28.40%
Theoretical tax expense (income ) (C) = (A) x (-B)	-49,273		-43,465
Difference between the theoretical tax expense and the current and deferred tax expense excluding tax assessed on net interim profit on continuing activities (D)	-10,923	-5.7%	-16,804	-11.0%
Tax credits	40,480	21.2%	22,956	15.0%
Permanent differences between accounting profits and taxable profits	-7,609	-4.0%	-8,591	-5.6%
Change in unrecognized deferred taxes	-38,533	-20.2%	-22,387	-14.6%
Impact on deferred tax of a tax rate change	848	0.4%	-1,706	-1.1%
Impact of differences in foreign tax rates	-554	-0.3%	6,166	4.0%
Contribution to Value Added	-520	-0.3%	-4,048	-2.6%
Other impacts	-5,037	-2.6%	-9,194	-6.0%
Total current and deferred tax expense (income) on continuing activities (E) = (C) + (D)	-60,196		-60,269
Effective tax rate (ETR) on continuing activities (E)/(A)	31.5%		39.4%

(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 31.5% in 2022 (39.4% for 2021).

In 2022, the tax recognized was an expense of -€60 million for a theoretical tax expense of -€49 million, based on a tax rate of 25.82%.

In 2021, the tax recognized was an expense of -€60 million for a theoretical tax expense of -€44 million, based on a tax rate of 28.40%.

In fiscal year 2022, the difference between the tax recognized and the theoretical tax mainly reflects:

• €40 million in specific tax reductions or tax credits mainly in North America, Belgium, Asia and France (€23 million at December 31, 2021);
• for -€8 million in permanent differences between accounting profits and taxable income (-€9 million at December 31, 2021) essentially due to taxable dividends;
• for -€39 million through 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 (-€22 million at December 31, 2021) – Please refer to Note 2.1.4 "Deferred tax assets" in "Significant events of the period";
• for -€1 million through the impact from lower taxes, mainly in Asia (China, Thailand), the United States and Europe (excluding France and Belgium) (+€6 million at December 31, 2021). The difference between the tax rate in France and countries with lower tax rates has a favorable impact on profits and an unfavorable effect on losses; and
• -€7 million in other differences (-€9 million in other differences, including -€3 million in provisions related to uncertain tax positions at December 31, 2021).

4.9. Net profit (loss) attributable to non-controlling interests

The net profit (loss) attributable to non-controlling interests corresponds to the share of non-controlling interests in the profit (loss) of fully consolidated entities and companies controlled by the Group. It breaks down as follows:

In thousands of euros	2022	2021
HBPO GmbH and its subsidiaries(1)	10,245	5,581
of which HBPO GmbH and its subsidiaries no longer presenting minority interests as of the transaction of December 12, 2022(1)	7,407	4,425
of which HBPO subsidiary "Hicom HBPO Sdn Bhd - shah alam" whose shareholding still includes a minority partner after the operation of December 12, 2022(1)	2,838	1,156
Beijing Plastic Omnium Inergy Auto Inergy Co. Ltd	496	1,335
Plastic Omnium Auto Inergy Manufacturing India Pvt Ltd	337	173
DSK Plastic Omnium Inergy	-1,135	2,400
DSK Plastic Omnium BV	-46	-284
Total attributable to non-controlling interests	9,898	9,206

(1) This is the share of non-controlling interests in the results of HBPO entities until December 12, 2022, the date of acquisition by Plastic

Omnium from Hella of the final third of the stake. See Note 2.2.2.1 in "Other significant events of the period".

4.10. Earnings per share and diluted earnings per share

Net profit (loss) attributable to owners of the parent	2022	2021
Basic earnings per share (in euros)	1.16	0.87
Diluted earnings per share (in euros)	1.16	0.87
Weighted average number of ordinary shares outstanding at end of period	146,587,358	147,339,735
- Treasury stock	-1,989,603	-2,027,088
Weighted average number of ordinary shares, undiluted	144,597,756	145,312,647
- Impact of dilutive instruments (stock options)	321,747	333,356
Weighted average number of ordinary shares, diluted	144,919,503	145,646,003
Weighted average price of the Plastic Omnium share during the period
- Weighted average share price	16.80	27.06

5. NOTES TO THE BALANCE SHEET

5.1. Assets

5.1.1. Goodwill

For the 2022 fiscal year, the assumptions related to impairment tests carried out at the level of the cash-generating units (CGU) or groups of cash generating units (business segments), namely "Industries" and "Modules" are set out in Note 1.6.1.

GOODWILL In thousands of euros	Gross Value	Impairment	Net value
Goodwill at January 1, 2021	1,014,369	-	1,014,369
Goodwill on acquisition of Plastic Omnium New Energies Wels GmbH (1)	6,311	-	6,311
Translation differences	6,192	-	6,192
Goodwill at December 31, 2021	1,026,872	-	1,026,872
Goodwill on AMLS Osram acquisition(2)	9,792	-	9,792
Goodwill on Actia Power acquisition(3)	37,851	-	37,851
Goodwill on VLS acquisition(4)	22,761	-	22,761
Goodwill impairment of DSK Plastic Omnium BV(5)	-	-2,063	-2,063
Translation differences	5,142	-	5,142
Goodwill at December 31, 2022	1,102,418	-2,063	1,100,355

(1) The Group acquired the company Plastic Omnium New Energies Wels GmbH on March 1, 2021. The opening balance sheet was finalized on March 1, 2022. The Goodwill remained unchanged. See Note 2.2.3.2 in "Other significant events of the period".

(2) The Group acquired AMLS Osram on July 1, 2022. See Note 2.2.2.2.1 in "Other significant events of the period".

(3) The Group acquired Actia Power on August 1, 2022. See Note 2.2.2.3 in "Other significant events of the period".

(4) The Group acquired VLS on October 6, 2022. See Note 2.2.2.2.2 in "Other significant events of the period".

(5) Corresponds to the impairment of goodwill related to the war in Ukraine. See note 2.1.2 on "War in Ukraine: Impact on the Group's activity".

5.1.2. Other intangible assets

In thousands of euros	Patents and brands	Software	Development assets	Customer contracts	Other	Total
Carrying amount published at December 31, 2021	7,471	15,081	467,797	48,425	2	538,777
Capitalized development	-	-	141,901	-	-	141,901
Increases	1,071	2,317	15,667	-	-	19,055
Disposals - net	-	-24	-833	-	-	-857
Newly-consolidated companies	32,777	2,256	73,986	3,333	-	112,352
Reclassifications	-	6,291	-5,074	-	-	1,217
Depreciation for the period	-3,579	-9,217	-153,985	-16,465	-	-183,246
Impairment and reversals	-214	-3	-198	-	-	-415
Adjustments to amortization from prior periods (1)	8,621	-	-	-	-	8,621
Translation adjustment	77	61	4,815	-0	-	4,952
Carrying amount at December 31, 2022	46,223	16,762	544,076	35,293	2	642,357

(1) This net adjustment is income of €5,279 thousand recognized in reserves at June 30, 2022, after taking into account deferred tax of -€3,342 thousand.

In thousands of euros	Patents and licenses	Software	Development assets	Customer contracts	Other	Total
Carrying amount published at January 1, 2021	9,916	16,082	468,167	66,680	2	560,847
Capitalized development	-	-	128,550	-	-	128,550
Increases	267	2,843	13,535	-	-	16,645
Disposals - net	-	-	-6,180	-	-	-6,180
Newly-consolidated companies	-	59	8,816	-	-	8,875
Other reclassifications	1,454	4,109	-7,949	-5	-	-2,391
Depreciation for the period	-4,226	-8,113	-153,436	-19,157	-	-184,932
Impairments and reversals	-	11	1,591	-	-	1,602
Translation adjustment	61	91	14,703	907	-	15,762
Carrying amount published at December 31, 2021	7,471	15,081	467,797	48,425	2	538,777

In thousands of euros	Patents and licenses	Software	Development costs	Customer contracts	Other	Total
Analysis of carrying amount at January 1, 2022
Cost	51,074	162,975	1,375,790	294,491	2	1,884,332
Accumulated depreciation	-39,345	-147,526	-836,336	-222,666	-	-1,245,873
Impairment	-4,258	-367	-71,658	-23,400	-	-99,683
Carrying amount at January 1, 2022	7,471	15,081	467,797	48,425	2	538,777
Analysis of carrying amount at December 31, 2022
Cost	96,236	198,652	1,632,840	301,446	2	2,229,176
Accumulated depreciation	-45,447	-181,511	-1,018,857	-242,753(1)	-	-1,488,568
Impairment	-4,566	-379	-69,907	-23,400	0	-98,252
Carrying amount at December 31, 2022	46,223	16,762	544,076	35,293	2.40	642,357

(1) Final year of amortization of contractual customer relationships recognized on the takeover in July 2016 of the Faurecia Group Exterior Systems business. See Note 4.4 "Amortization of intangible assets acquired".

5.1.3. Property, plant and equipment

Property, plant and equipment corresponds to property, plant and equipment owned but also, since January 1, 2019, to rights-of-use related to leases of property, plant and equipment following the application of IFRS 16 "Leases".

Impairment tests on assets led to the updating of impairment of property, plant and equipment over the period (see Notes 2.1.3 "Asset impairment tests" and 4.6 "Other operating income and expenses").

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, 2022 : Property, plant and equipment owned outright	95,009	521,373	483,855	140,401	196,149	1,436,787
Acquisitions	179	6,343	29,106	170,629	13,204	219,461
Disposals - net	-47	627	-3,960	-	522	-2,859
Newly consolidated companies	3,417	51,442	219,000	28,737	14,998	317,594
Other reclassifications	-8,854	-8,940	61,122	-139,487	53,354	-42,805
Depreciation for the period	-1,568	-33,595	-131,611	-	-96,611	-263,385
Impairments and reversals	-	4,612	6,533	-4,608	-829	5,709
Translation adjustment	1,296	6,789	3,578	736	2,238	14,637
Wholly-owned property, plant and equipment: Carrying amount at December 31, 2022 (A)	89,431	548,653	667,623	196,410	183,024	1,685,141

Carrying amount at January 1, 2022: Lease right-of-use assets	573	171,538	18,618	-	11,392	202,121
Acquisitions	2	37,894	5,410	-	6,344	49,650
Disposals - net	-	-8,329	-1,317	-	-294	-9,940
Newly consolidated companies	137	85,366	3,401	-	1,280	90,184
Depreciation for the period	-137	-38,915	-7,048	-	-7,505	-53,605
Other reclassifications	1,793	-2	312	-	-3	2,100
Translation adjustment	-117	337	236	-	5	461
Lease-right-of-use assets: Carrying amount at December 31, 2022 (B)	2,252	247,890	19,613	-	11,218	280,973

	Property, plant and equipment: Carrying amount at December 31, 2022 (C) = (A)+ (B)	91,683	796,543	687,236	196,410	194,242	1,966,113
--	---------------------------------------------------------------------------------------	--------	---------	---------	---------	---------	-----------

Information on rental expense resulting from uncapitalized leases:

Rental expense on uncapitalized leases amounted to -€14.6 million at December 31, 2022 compared with -€10.9 million at December 31, 2021.

The table below, for the previous fiscal year, combines "Wholly-owned property, plant and equipment" and "Lease right-of-use assets".

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	93,249	688,539	519,365	142,867	232,169	1,676,189
Acquisitions	279	45,002	20,131	121,872	21,043	208,327
Disposals - net	-987	-10,957	-2,972	-	-385	-15,301
Changes in consolidation scope	-	-	-	-	-	-
Other reclassifications	1,120	7,900	69,047	-126,420	49,321	968
Depreciation for the period	-1,588	-63,311	-123,981	-	-101,065	-289,945
Impairments and reversals	-	-26	-303	-1,792	-883	-3,004
Translation adjustment	3,512	23,278	20,605	3,789	7,135	58,319
Carrying amount at December 31, 2021	95,582	692,911	502,473	140,401	207,541	1,638,908

In thousands of euros	Land	Buildings	Tech. eq. & tool.	Property, plant and equipment under construction	Other property, plant and equipment	Total
Analysis of carrying amount at January 1 2022
Gross value	112,815	1,181,689	2,040,029	142,432	781,294	4,258,259
Accumulated depreciation	-14,758	-443,081	-1,430,490	-	-536,590	-2,424,919
Impairment	-2,475	-45,697	-107,066	-2,031	-37,163	-194,432
Carrying amount at January 1, 2022	95,582	692,911	502,473	140,401	207,541	1,638,908
Analysis of carrying amount at December 31, 2022
Gross value	111,036	1,393,273	2,550,081	202,995	883,723	5,141,108
Accumulated depreciation	-16,951	-549,136	-1,737,177	-	-664,371	-2,967,635
Impairment	-2,401	-47,594	-125,668	-6,586	-25,109	-207,358
Carrying amount at December 31, 2022	91,683	796,543	687,236	196,410	194,242	1,966,113

"Tech. eq. & tool.": technical installations, equipment and tooling

5.1.4. Non-consolidated interests, equity investments in associates and joint ventures and convertible bonds

5.1.4.1. Equity investments in associates and joint ventures

These are equity investments in associates and joint ventures. Details are provided in the following table:

In thousands of euros	2022 % interest	2021 % interest	December 31, 2022	December 31, 2021
HBPO - SHB Automotive Modules(1)	50.00%	33.34%	22,412	16,405
JV Yanfeng Plastic Omnium and its subsidiaries - joint venture	49.95%	49.95%	193,926	184,138
B.P.O. AS - joint venture	49.98%	49.98%	11,887	7,263
EKPO Fuel Cell Technologies(2)	40.00%	40.00%	92,022	96,471
Total investments in associates and joint ventures			320,247	304,277

(1) The Group's stake was increased from 33.34% to 50%, without taking control, following the acquisition on December 12, 2022, of the final third of HBPO held by Hella.

See note 2.2.2.1 "Acquisition by Plastic Omnium of the final third of HBPO GmbH from Hella, bringing the Group's stake to 100%." in "Other significant events of the period" and Note 4.5 "Share of profit (loss) of associates and joint ventures".

(2) Constitution of EKPO China in 2022, wholly owned by "EKPO Fuel Cell Technologies".

Investments in these entities include goodwill by segment for the following amounts:

In thousands of euros	December 31, 2022	December 31, 2021
Goodwill in associates and joint ventures - Industries segment	39,373	39,131
Goodwill in associates and joint ventures - Modules segment	2,411	3,858
Total goodwill in associates and joint ventures	41,783	42,989

In view of the individual contribution of less than 10% of joint ventures and associates to the Group's main financial indicators, the summary balance sheet and income statement aggregates presented below include:

• the joint venture YFPO and its subsidiaries after elimination of internal transactions;
• the associate SHB Automotive Modules (HBPO) in which the Group's stake increased from 33.34% to 50% on December 12, 2022 following the acquisition by the Group of the final third held by Hella;
• the B.P.O. AS joint-venture; and

• the EKPO Fuel Cell Technologies associate and its subsidiary EKPO China.

In thousands of euros	December 31, 2022	December 31, 2021
Non-current assets	737,776	614,684
Current assets	1,500,860	1,512,819
Total assets	2,238,636	2,127,503
Shareholders' equity	594,156	566,919
Non-current liabilities	188,455	141,601
Current liabilities	1,456,025	1,418,984
Total equity and liabilities	2,238,636	2,127,503
Revenue	2,124,193	1,798,114

5.1.4.2. Non-consolidated interests and convertible bonds

The non-consolidated interests relate to:

• immaterial dormant companies; and
• shares in which the Group's small stake does not allow it to exercise at least significant influence (Tactotek OY).

In the context of the first-time application of IFRS 9 "Financial Instruments", the Group opted to recognize changes in value of non-consolidated interests in the income statement.

Convertible bonds include:

• the Group's investments in the form of bonds for which the Group has the choice, at the time of settlement, of either repayment or conversion into shares : see information on the investment in Verkor in the first half of 2022 in Note 2.2.4.1 under "Other significant events of the period".

Details of all these assets are provided in the table below:

In thousands of euros	December 31, 2022	December 31, 2021
Other non-consolidated equity investments	334	136
Total non-consolidated equity investments	334	136
Verkor convertible bonds(1)	20,000	-
Total convertible bonds	20,000	-
Total non-consolidated equity investments and convertible bonds	20,334	136

(1) See Note 2.2.4.1 "Group investment in the French company Verkor, a specialist in the manufacture of batteries for future mobility" in "Other significant events of the period".

5.1.5. Non-current financial assets

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:

5.1.5.1. Long-term investments in equities and funds

• Investments in listed companies, funds or equivalents and investments in securities of listed companies, including funds invested in the "Aster", "AP Ventures" and "FAIM" venture capital companies;

• The Group's investments in the "FMEA 2" fund as part of the support of the Automotive Division sub-contractors and in shell companies.

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 investment funds in the income statement.

In thousands of euros		December 31, 2022		December 31, 2021
	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	-3,820	180	4,000	-3,903	97
Financial investments in listed securities(1) - (3)	46,566	-	46,566	57,687	-	57,687
Financial investments in the venture capital AP Ventures(1) - (4)	28,127	-13,139	14,988	26,488	-16,690	9,798
Financial investment in the venture capital company Aster(1) - (5)	20,000	-7,050	12,950	20,000	-9,682	10,318
Financial investment in the venture capital company FAIM(6)	5,000	-4,585	415	-	-	-
Other(1)	-	-	1,199	-	-	173
Long-term investments in equities and funds			76,298			78,071

(1) Financial investments in the FMEA 2 fund and investments in shares in listed companies are listed under long-term financial receivables in Note 5.2.6.7 "Reconciliation of gross and net financial debt".

(2) The net value of FMEA 2 at the end of each 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.

• (3) During the period, the Group invested in listed securities (See Statement of cash-flows).
• (4) Total Group investments in AP Ventures, a venture capital fund dedicated to hydrogen, amounted to \$16.0 million, equivalent to €15.0 million (versus \$11.1 million, equivalent to €9.8 million at December 31, 2021).

The Group has committed to \$30 million over the life of the fund.

• (5) During the period, the Group paid €1.3 million and did not receive any financial income in return (recognized in the balance sheet over the period of full payment the amount subscribed).
• (6) The Group has committed to €5 million. See Note 2.2.4.2 in the "Other significant events of the period".

5.1.5.2. Other non-current financial assets

In thousands of euros	December 31, 2022	December 31, 2021
Loans	1,181	1,359
Deposits and surety bonds	11,251	7,992
Other non-current assets and financial receivables (see Note 5.2.6.7)	12,432	9,351

"Deposits and surety bonds" mainly concern deposits relating to leased offices and sale of receivables programs.

In thousands of euros		December 31, 2022	December 31, 2021
Raw materials and supplies
	At cost (gross)	349,841	202,541
	Net realizable value	314,832	184,728
Molds, tooling and engineering
	At cost (gross)	343,814	311,217
	Net realizable value	338,301	306,972
Maintenance inventories
	At cost (gross)	90,926	78,835
	Net realizable value	70,708	61,673
Goods
	At cost (gross)	4,650	1,771
	Net realizable value	2,155	1,309
Semi-finished products
	At cost (gross)	73,775	55,417
	Net realizable value	70,050	51,132
Finished products
	At cost (gross)	64,280	34,636
	Net realizable value	60,546	31,865
Total net		856,592	637,678

5.1.6. Inventories and inventories in progress

5.1.7. Trade and other receivables

5.1.7.1. Sale of receivables

Compagnie Plastic Omnium SE and some of its European and United States subsidiaries have set up several commercial sales of receivables 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 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 €393 million at December 31, 2022 versus €351 million at December 31, 2021.

5.1.7.2. Trade receivables – Gross values, impairment and carrying amounts

	December 31, 2022				December 31, 2021
In thousands of euros	Gross value	Impairme nt	%	Carrying amount	Gross value	Impairme nt	%	Carrying amount
Trade receivables	1,048,102	-24,841	-2.4%	1,023,261	745,954	-11,677	-1.6%	734,277
of which scope excluding entities acquired during the period	842,422	-14,182	-1.7%	823,908	745,954	-11,677	-1.6%	734,277
% of the item's total	80.4%	57.1%		80.5%	100.0%	100.0%		100.0%
of which entities acquired during the period(1)-(2)	205,680	-10,659	-5.2%	199,353
% of the item's total(1)-(2)	19.6%	42.9%		19.5%

(1) See Note 2.2.2 "Group acquisitions taking effect during the second half of 2022 and operational organization" in the "Other significant events of the period".

(2) See Note 6.3.1 "Customer risk" related to the ageing of receivables.

of the 2nd half-year 2022.

The Group has not identified any significant non-provisioned customer risk over the two periods. In general, the default rate is historically low and changes in the impairment of trade receivables are not significant. The late payment of trade receivables is presented in Note 6.3.1 "Customer risk". The increase from 3.6% to 10.3% of the past due receivables respectively between December 31, 2021 and December 31, 2022 is due to the impact of the acquisitions

5.1.7.3. Other receivables

In thousands of euros	December 31, 2022	December 31, 2021
Sundry receivables	177,197	142,733
Prepayments to suppliers of tooling and prepaid development costs	22,682	13,356
Income tax receivables	83,408	83,197
Other tax receivables	203,786	103,219
Employee advances	4,915	6,777
Prepayments to suppliers of non-current assets	7,064	5,113
Other receivables	499,052	354,395

5.1.7.4. Trade and other receivables by currency

			December 31, 2022		December 31, 2021
In thousands of currency units		Local currency	Euro	%	Local currency	Euro	%
EUR USD CNY GBP	Euro US dollar Chinese yuan Pound sterling	740,744 470,818 923,641 45,936	740,744 441,419 125,525 51,792	49% 29% 8% 3%	458,834 380,352 966,108 24,546	458,834 335,822 134,281 29,212	42% 31% 12% 3%
Other	Other currencies		162,833	11%		130,523	12%
Total			1,522,313	100%		1,088,672	100%
Of which: ● Trade receivables ● Other receivables			1,023,261 499,052	67% 33%		734,277 354,395	67% 33%

Sensitivity tests on movements in currencies of "Trade and other receivables" give the following results:

					Sensitivity tests on receivables at December 31, 2022				Sensitivity tests on receivables at December 31, 2021
In thousands of currency		Base		Increase all currencies		Decrease all currencies		Base		Increase all currencies		Decrease all currencies
units				+10%	+20%	-10%	-20%	Local Exchange currency rate		+10% +20%		-10%	-20%
		Local currency	Exchange rate	%	%	%	%			%	%	%	%
EUR	Euro	740,744	1.0000	46%	44%	51%	54%	458,834	1.0000	40%	38%	45%	48%
USD	US dollar	470,818	0.9376	30%	32%	28%	26%	380,352	0.8829	32%	33%	29%	28%
CNY	Chinese yuan	923,641	0.1359	9%	9%	8%	7%	966,108	0.1390	13%	13%	12%	11%
GBP	Pound sterling	45,936	1.1275	4%	4%	3%	3%	24,546	1.1901	3%	3%	3%	2%
Other	Other currencies	-	-	11%	11%	10%	10%	-	-	12%	13%	11%	11%
Total in euros			1,522,313	1,600,350	1,678,496	1,444,057	1,365,911		1,088,672	1,151,675	1,214,661	1,025,704	962,719
Of which:
	● Trade receivables		1,023,261	1,075,720	1,128,248	970,663	918,135		734,277	776,670	819,146	691,717	649,241
	● Other receivables		499,052	524,630	550,248	473,394	447,776		354,395	375,005	395,515	333,987	313,478

Exchange rate sensitivity tests on "Trade and other receivables" and "Trade payables and other operating liabilities by currency" (see Note 5.2.8.3) show a low sensitivity of this item to variations in exchange rates.

5.1.8. Deferred taxes

As noted in Note 1.9 of the accounting rules and principles, deferred tax assets on tax loss carryforwards, temporary differences and tax credits are assessed according to their probability of future use. For this purpose, estimates were made as part of the closing of the accounts and led to the recognition of assets based on probable use within a relatively short period of time, reflecting a prudent approach given the current economic environment.

Deferred taxes break down as follows:

In thousands of euros	December 31, 2022	December 31, 2021
Intangible assets	71,422	3,815
Property, plant and equipment	-24,434	-13,111
Employee benefit obligations	18,685	23,228
Provisions	67,034	42,527
Financial instruments	-2,572	318
Tax loss carryforwards and tax credits	310,063	204,971
Other	55,041	37,289
Impairment of deferred tax assets	-379,798	-213,144
Total	115,441	85,893
Of which:
Deferred tax assets	152,658	126,321
Deferred tax liabilities	37,217	40,428

Unrecognized tax assets in respect of tax losses amount to €207 million at December 31, 2022 against €131 million at December 31, 2021 and have the following characteristics:

In thousands of euros	December 31, 2022	December 31, 2021
Indefinite tax loss carryforwards	181,146	110,977
Tax loss carryforwards available for more than 5 years	13,192	3,683
Tax loss carryforwards available for up to 5 years	7,369	6,475
Tax loss carryforwards available for up to 4 years	3,048	2,700
Tax loss carryforwards available for up to 3 years	2,613	306
Tax loss carryforwards available for less than 3 years	39	6,917
Total	207,407	131,058

The change over the fiscal year is mainly due to changes in the scope of consolidation in the year. The opening balance sheet of the entities acquired in 2022, and the related analyses of their tax loss carryforwards are being finalized and could lead to the revision of the above amounts.

5.1.9. Cash and cash equivalents

5.1.9.1 Gross cash and cash equivalents

In thousands of euros	December 31, 2022	December 31, 2021
Cash at banks and in hand	505,142	865,002
Short-term deposits - Cash equivalents	70,484	27,634
Total cash and cash equivalents on the assets side of the balance sheet	575,625	892,636

Cash and cash equivalents break down as follows:

In thousands of euros	December 31, 2022	December 31, 2021
Cash and cash equivalents of the Group's captive reinsurance company(1)	15,883	14,088
Cash and cash equivalents in countries with exchange controls and/or restrictions on currency transfers(2)	149,718	67,907
Available cash	410,024	810,641
Total cash and cash equivalents on the assets side of the balance sheet	575,625	892,636

(1) During the period, the Group invested in securities of listed companies. See Note 5.1.5.1 "Long-term investments in equities and funds ".

(2) These available funds are located either in countries where setting up loans or financial current accounts is difficult; in this case, cash is repatriated, in particular on the occasion of the payment of dividends; or in countries where the cash cannot be centralized due to the regulations in force. As of December 31, 2022, the countries selected in this category cover Brazil, China, India, Argentina, Turkey, Russia, South Korea, Malaysia and Indonesia.

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.

5.1.9.2. Net cash and cash equivalents at end of period

In thousands of euros	December 31, 2022	December 31, 2021
Cash	505,142	865,002
Cash equivalents	70,484	27,634
Short-term bank loans and overdrafts	-15,022	-11,264
Net cash and cash equivalents in the Statement of Cash-Flows	560,604	881,372

5.1.10. Statement of cash-flows – Acquisitions and disposals of financial assets, non-controlling interests and related investments and non-consolidated equity interests

5.1.10.1 Acquisitions of equity investments, non-controlling interests and related investments

The Group's financial acquisitions were as follows:

a - acquisitions of equity investments in consolidated companies, investments leading to a change in control, equity investments in associates and joint ventures and related investments

These are recorded under "Financial transactions" in the Statement of Cash-Flows and "Financing transactions".

At December 31, 2022:

Acquisition of equity securities with neither acquisition nor loss of control:

• The acquisition of the final third of HBPO GmbH, over which the Group already has control and which brings the Group's stake to 100%, is recognized in Financing transactions for an amount of -€281.7 million. See Note 2.2.2.1 in "Other significant events of the period".

The amount of -€160.9 million in "Acquisitions of equity investments in subsidiaries and investments leading to a change in control" corresponds to:

• -€24.0 million on the acquisition of "AMLS Osram" (see note 2.2.2.2.1 under "Other significant events of the period");
• -€17.2 million for the acquisition of "Actia Power" (see Note 2.2.2.3 under "Other significant events of the period");
• -€69.6 million for the acquisition of "VLS Varroc Lighting Systems" (see Note 2.2.2.2.2 under "Other significant events of the period");
• the amount of -€30 million paid out during the first half according to the debt repayment schedule for the 40% equity investment in EKPO Fuel Cell Technologies. The balance at December, 31, 2022 stood at €40 million. See Note 2.2.3.1 in "Other significant events of the period".

At December 31, 2021:

The amount of -€43.5 million in "Acquisitions of equity investments in subsidiaries and investments leading to a change in control" 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 fiscal 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 acquisition price of the shares. See the detail in Note 2.2.2.1.1 "Acquisition price" 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 the €373 thousand of cash included in the opening balance sheet.

b - Investment in Convertible bonds

This concerns:

• the Group's investment for €20 million in Verkor. See Note 2.2.4.1 in "Other significant events of the period"; and
• the investment of the New Energies Division in February 2022 in the American company "Noble Gas Systems Inc." for €77 thousand (\$85 thousand).

5.1.11 Impact of dividends paid in the Statement of cash-flows

5.1.11.1 Impacts in the Statement of cash-flows of dividends paid by the Compagnie Plastic Omnium Group

In 2022, the dividend paid by Compagnie Plastic Omnium SE to shareholders other than Burelle SA amounted to €16,136 thousand (compared to €28,499 thousand in 2021), bringing the total amount of the dividend thus paid by Compagnie Plastic Omnium SE to €40,586 thousand (compared to €71,287 thousand in 2021).

See the corresponding amount in the Statement of changes in equity and in Note 5.2.2 "Dividends approved and paid by Compagnie Plastic Omnium SE".

5.1.11.2 Impacts in the Statement of cash-flows of dividends paid by other Group companies

At December 31, 2022, the amount of dividends of the other Group companies, voted and approved, amounted to €10,945 thousand compared to €13,648 thousand at December 31, 2021 in the Statement of changes in equity. The amount of dividends paid by the other Group companies, shown in the Statement of cash-flows at December 31, 2022, amounted to €27,115 thousand (including the amount paid by Compagnie Plastic Omnium SE) compared to €40,009 thousand at December 31, 2021.

At December 31, 2022:

• the dividend of €980 thousand in favor of Compagnie Plastic Omnium SE, approved by a Group company accounted for using the equity method and not yet received, was charged directly to the dividends received from companies accounted for by the equity method;
• no dividends approved in favor of non-controlling interests of a Group subsidiary are pending payment.

5.2. Liabilities and Shareholders' Equity

5.2.1. Group shareholders' equity

5.2.1.1 Share capital of Compagnie Plastic Omnium SE

In euros	December 31, 2022	December 31, 2021
Share capital at January 1 of the period	8,827,329	8,913,966
Capital reduction during the period	-96,000	-86,637
Share capital at end of period, made up of ordinary shares with a par value of €0.06 each over the two periods	8,731,329	8,827,329
Treasury stock	92,993	123,685
Total share capital net of treasury stock	8,638,337	8,703,644

Shares registered on behalf of the same holder for at least two years have double voting rights.

Capital structure at December 31, 2022

Compagnie Plastic Omnium SE's share capital was reduced on September 1, 2022 through the cancelation of 1,600,000 treasury shares decided by the Board of Directors on July 20, 2022.

The transaction reduced the number of shares comprising the share capital from 147,122,153 shares with a par value of €0.06 to 145,522,153 shares.

At December 31, 2022, Compagnie Plastic Omnium SE's share capital amounted to €8,731,329.18 comprising 145,522,153 shares with a par value of €0.06 per share.

Treasury stock amounted to 1,549,878 shares, i.e. 1.07% of the share capital, compared to 2,061,413 shares, or 1.40% of the share capital at December 31, 2021.

Capital structure at December 31, 2021

At December 31, 2021, 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 €8,827,329.18, with 2,061,413 treasury shares, representing 1.40% of the share capital, compared with 2,834,235 shares, representing 1.91% of the share capital at December 31, 2020.

5.2.1.2 Voting rights of the main shareholder Burelle SA in Compagnie Plastic Omnium SE

The voting rights of the main shareholder Burelle SA over the reference periods are presented below:

	December 31, 2022	December 31, 2021
Voting rights of Burelle SA	73.78%	73.28%

5.2.1.3 Note to the Statement of Other Comprehensive Income – Net profit (loss) of the period attributable to owners of the parent Compagnie Plastic Omnium SE

Net profit (loss) of the period:

Net profit (loss) of the period attributable to owners of the parent amounted to:

• €101,654 thousand at December 31, 2022;
• €76,076 thousand at December 31, 2021.

Net other comprehensive income of the period:

Net other comprehensive income of the period attributable to owners of the parent amounted to:

• €121,508 thousand at December 31, 2022;
• €115,455 thousand at December 31, 2021.

5.2.1.4 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, 2021	-65,072	-1,389	11	24,863	2,282,672	2,241,085
Movements in 2021	11,883	193	-301	12,532	-355,497	-331,190
At December 31, 2021	-53,189	-1,196	-290	37,395	1,927,175	1,909,895
Movements in 2022	23,334	193	482	-11,120	-169,690	-156,801
At December 31, 2022	-29,855	-1,003	192	26,275	1,757,485	1,753,094

5.2.1.5 Breakdown of "Changes in the scope of consolidation and reserves" in the "Consolidated Statement of Changes in Equity"

The acquisitions of the 2022 fiscal year, "AMLS Osram", "Actia Power" and "VLS", are fully consolidated at 100%.

Only the Group's acquisition of the last third of HBPO GmbH gives rise to a change in scope through the transfer of noncontrolling interests to the Group Share.

	Shareholders' equity
In thousands of euros	Attributable to owners of the parent	Attributable to non-controlling interests	Total shareholders' equity
None	-		-
Changes in the scope of consolidation at December 31, 2021	-	-	-
Acquisition of the final third of HBPO:(1)
Acquisition from Hella of the final third of HBPO GmbH	-243,124	-38,544	-281,667
Increase by integration of the Hella partner's stake in SHB Automobile Modules Co Ltd, consolidated by the equity method	6,270	-	6,270
Changes in the scope of consolidation at December 31, 2022	-236,854	-38,544	-275,398

(1) See Note 2.2.2.1 "Acquisition by Plastic Omnium of the final third of HBPO from Hella on December, 12, 2022, bringing the Group stake to 100 %" in the "Other significant events of the period".

5.2.2. Dividends approved and paid by Compagnie Plastic Omnium SE

Amounts in thousands of euros Dividends per share in euros	December 31, 2022		December 31, 2021
Number of shares in units	Number of shares in 2021	Number of shares Dividend		Dividend
Dividends per share (in euros)		(1) 0.28		(1) 0.49
Total number of shares outstanding on the dividend payment date	147,122,153		(2) 147,122,153
Total number of shares outstanding at the end of the previous year	147,122,153		148,566,107
Total number of shares held in treasury on the dividend payment date	(3) 2,172,481		(3) 1,637,740
Total number of shares held in treasury at year-end (for information)	(3) 2,061,413		(3) 2,834,235
Dividends on ordinary shares		41,194		72,090
Dividends on treasury stock (unpaid)		(2) -608		(2) -803
Total net dividends		40,586		71,287

• (1) In fiscal year of 2022, Compagnie Plastic Omnium paid a dividend of €0.28 per share on the fiscal year 2021 net profit, versus €0.49 per share at December 31, 2021 on the fiscal year 2020 net profit.
• (2) Share capital reduction of Compagnie Plastic Omnium SE by cancelling 1,443,954 treasury shares on February 17, 2021, bringing the number of shares to 147,122,153.
• (3) At December 31, 2022: 2,061,413 treasury shares were taken into account at December 31, 2021 to determine the provisional total dividend. The number of treasury shares at the time of the dividend's payment during the first-half of 2022 amounted to 2,172,481 shares, increasing the dividends attached to these shares from €577 thousand to €608 thousand.

At December 31, 2021: 2,834,235 treasury shares were taken into account at December 31, 2020 to determine the provisional total dividend. The number of treasury shares at the time of the dividend's payment during the first half of 2021 amounted to 1,637,740 shares, decreasing the dividends attached to these shares from €1,389 thousand to €803 thousand.

Distribution of a dividend of €0.39 per share in respect of 2022 (total amount of €56,754 thousand corresponding to 145,522,153 outstanding shares before subtracting treasury shares at December 31, 2022) will be proposed to the Combined Shareholders' Meeting on April 26, 2023.

5.2.3. Share-based payments

Stock options plan:

2021 and 2022: no new stock option plans were introduced in the 2021 and 2022 fiscal years.

Free Share Award Plan:

Plan of May 2, 2019:

A performance share grant (valued using IFRS 2 accounting principles) was awarded by the Board of Directors of February 19, 2019 to employees and executive corporate officers of Compagnie Plastic Omnium, related companies, or groups linked to Compagnie Plastic Omnium, subject to performance conditions and with a four-year vesting period.

Plan of December 11, 2020:

A performance share grant was awarded by the Board of Directors of December 11, 2020, with retroactive effect from April 30, 2020, to employees and executive corporate officers of Compagnie Plastic Omnium, related companies, or groups linked to Compagnie Plastic Omnium, subject to performance conditions and with a four-year vesting period ending on April 30, 2024.

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 (two beneficiaries), with a four-year vesting period ending on April 23, 2025.

Plan of April 22, 2022:

A performance share grant was awarded by the Board of Directors of February 17, 2022, to executive corporate officers of Compagnie Plastic Omnium (two beneficiaries), with a three-year vesting period ending on April 22, 2025 at the end of the General Meeting of Shareholders in 2025 called to approve the 2024 financial statements.

The main assumptions used for the valuation of the plans using the principles of IFRS 2 are provided in the following tables:

Valuation of April 22, 2022 plan	Valuation of the number of shares awarded and valuation on April, 22, 2022
In euros In units for the number of shares	Initial	Renunciations in 2022	Final positions
Number of shares allocated to the performance share plan	95,602 shares	0 share	95,602 shares
Market conditions	Not subject to market conditions
Beneficiaries	Executive Corporate Officers
Number of beneficiaries	2
Plastic Omnium share price at the performance plan award date		€15.58
Average value of one share		€14.00
Number of shares that may be awarded after application of an employee turnover rate	95,602
Estimated overall cost of the plan on the award date - (Accounting expense with adjustment to reserves)		€1,338,428

The overall cost of the plan was valued at the time of its implementation for the December 31, 2022 financial statements. The overall expense amounts to €1,338,428, amortized on a straight-line basis over the three-year vesting period, of which €310,466 at December 31, 2022 (for an annual expense of €446,143).

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 in 2025. It is the subject of a provision for expenses, calculated on the nominal value of the shares according to the market price at the award date, spread over the term of the plan, i.e. three years. As of December 31, 2022, the provision for expenses in this regard, amounted to €1,271 thousand.

The 2022 Long-term Incentive Plan for permanent members of the Executive Committee and non-corporate officers:

The Group set up a Long-term Incentive Plan for the permanent members of the Executive Committee over the period, with the aim of involving them in the creation of long-term value, as regards the challenges of competitiveness and attractiveness for Compagnie Plastic Omnium SE, and the Group.

An Allocation corresponds to the right, granted unilaterally by Compagnie Plastic Omnium SE and the Group to a beneficiary, to receive deferred variable compensation in cash corresponding to the unit value of a "Phantom Share", subject to compliance with the conditions of presence and performance.

The allocation budget for Phantom Shares is set at 30% of the beneficiary's fixed annual base salary on the allocation date. The Plan is applicable each year, but it may not be combined with any other plans (such as stock option plans, free share plans, performance shares, etc.) in the same year.

The dates associated with the 2022 plan are:

• allocation date: May 18, 2022
• acquisition date: May 17, 2025

The estimated total expense amounts to €1,117 thousand. It is amortized on a straight-line basis over the three-year vesting period, of which €232 thousand at December 31, 2022 (for an annual expense of €373 thousand).

This plan is subject to a 50% social security contribution for the employer, a French subsidiary. This contribution is due the month following the date of vesting by the beneficiary in 2025. It is the subject of a provision for expenses, calculated on the basis of the average value of the share over the last 20 trading days preceding the allocation date, i.e. €15.3135, with a 100% achievement rate, spread over the duration of the plan, i.e. three years. As of December 31, 2022, the provision for expenses recognized in this regard, amounted to €349 thousand.

Outstanding options at the end of the fiscal year and expense for the period of option plans

The vesting period of the various plans is between three and four years.

Outstanding options Stock options In euros	Options				Revaluati	Increases	Decreases			Options outstanding at December 31, 2022
In units for the number of options	outstanding at January 1, 2022	ons/adjust ments	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year	Cost for the period	Total	Of which, options exercisable at December 31, 2022
August 6, 2015 plan
Number of options	591,840			-591,840			-	-
Share price at the grant date	26.33						-
Exercise price	24.72						-
Term	7 years						-
Unrecognized cost at period-end	-						-
Remaining life	0.6 year						-

Outstanding options Stock options In euros	Options				Revaluati		Increases	Decreases			Options outstanding at December 31, 2022
In units for the number of options	outstanding at January 1, 2022	ons/adjust ments	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year	Cost for the period	Total	Of which, options exercisable at December 31, 2022
March 10, 2017 plan
Number of options	302,500			-21,000			281,500	281,500
Share price at the grant date	33.71						33.71
Exercise price	32.84						32.84
Term	7 years						7 years
Unrecognized cost at period-end	-						-
Remaining life	2.2 years						1.2 year

Outstanding options Performance share plan In euros	Options outstanding	Revaluation	Increases		Decreases	Cost for the period	Options outstanding at December 31, 2022
In units for the number of options	at January 1, 2022	s/adjustmen ts	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year		Total	Of which, options exercisable at December 31, 2022
May 2, 2019 plan
Number of shares allocated to the plan	319,953	-33,567(2)					286,386	None
Number of shares after application of the real abandons for the valuation of the fiscal year expenses '(1)	221,130			-47,890			173,240
Share price at the grant date	26.65						26.65
Average share value Term	23 4 years						23.00 4 years
Unrecognized cost at period-end	1,968,340			-1,374,480		-261,817	332,043
Remaining life	1.3 year						0.3 year

(1) Used to determine "Diluted earnings per share".

(2) The adjustments correspond to the transfer of 9,447 shares to the Performance share plan of April 23, 2021 and 35,040 shares canceled as part of the capital reduction of February 25, 2021. See Note 2.2.1.1 in "Significant events of the period".

Outstanding options Performance share plan In euros	Options outstanding at January 1, 2022					Revaluatio	Increases	Decreases		Cost for the	Options outstanding at December 31, 2022
In units for the number of options		ns/adjust ments	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year	period	Total	Of which, options exercisable at December 31, 2022
December 11, 2020 plan(1)
Number of shares	228,373						228,373	None
Number of shares after application of the headcount turnover rate (22%) applied to the Plan concerning the employees '(2)	188,113						188,113
Share price at the grant date	17.36						17.36
Average share value	15						15.00
Term	4 years						4 years
Unrecognized cost at period-end	1,645,988					-705,424	940,564
Remaining life	2.3 years						1.3 year

(1) The December 11, 2020 plan has retroactive effect from April 30, 2020.

(2) Used to determine "Diluted earnings per share".

Outstanding options Performance share plan In euros	Options outstanding at January 1, 2022			Revaluatio	Increases		Decreases	Cost for the		Options outstanding at December 31, 2022
In units for the number of options		ns/adjust ments	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year	period	Total	Of which, options exercisable at December 31, 2022
April 23, 2021 plan
Number of shares	45,947						45,947	None
Number of shares after application of the headcount turnover rate (22%) applied to the Plan concerning the employees '(1)	45,947						45,947
Share price at the grant date	29.88						29.88
Average share value	27.92						27.92
Term	4 years		0				4 years
Unrecognized cost at period-end	1063884					-321,934	741,950
Remaining life	3.3 years		0				2.3 years

(1) Used to determine "Diluted earnings per share".

Outstanding options Performance share plan In euros	Options outstanding at January 1, 2022				Revaluatio	Increases	Decreases		Cost for the	Options outstanding at December 31, 2022
In units for the number of options		ns/adjust ments	Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year	period	Total	Of which, options exercisable at December 31, 2022
April 22, 2022 plan
Number of shares			95,602				95,602	None
Number of shares after application of the headcount turnover rate (22%) applied to the Plan concerning the employees '(1)			95,602				95,602
Share price at the grant date			15.58				15.58
Average share value			14.00				14.00
Term Unrecognized cost at period-end	0		3 years 1,338,428			-310,466	3 years 1,027,962
Remaining life	0		3 years				2.3 years
Total expense for the fiscal year						-1,599,641 in euros

(1) Used to determine "Diluted earnings per share".

A summary of the items related to the 2022 Long Term Incentive Plan for permanent members of the Executive Committee and non-Corporate Officers is provided below. This is a provision for charges:

Long term Incentive Plan Non-Corporate Officers of the Executive Comittee In euros	Options outstanding at January 1,	Revaluatio ns/adjust ments	Increases		Decreases	Cost for the period	December 31, 2022	Options outstanding at
In units for the number of options	2022		Options granted during the fiscal year	Options forfeited during the fiscal year	Options exercised during the fiscal year		Total	Of which, options exercisable at December 31, 2022
May 18, 2022 plan
Share price at the grant date Average share value Term Unrecognized provision for expense at period-end Remaining life	0 0		15.98 15.31 3 years 1,117,292 3 years			-232,429	15.98 15.31 3 years 884,863 2.4 years
Total Provision for expense of the fiscal year						-232,429 in euros

5.2.4. Provisions

In thousands of euros	December 31, 2021	Allocations	Utilizations	Releases of surplus provisions	Reclassifi cations	Actuarial gains/(losse s)	Changes in scope of consolidation (derocognition)	Translati on adjustme nt	December 31, 2022
Customer warranties	29,532	30,219	-13,988	-2,896	-1,112	-	3,904	65	45,724
Reorganization plans(1)	24,579	7,430	-13,868	-1,570	-	-	-	-38	16,533
Provisions for taxes and tax risks	4,656	491	-	-2,441	-214	-	-	89	2,581
Contract risks	22,542	4,248	-9,426	-6,153	2,317	-	3,371	-67	16,832
Provisions for claims and litigation	10,230	719	-959	-1,100	-	-	39	183	9,112
Other	6,514	5,019	-2,188	-336	-938	-	9,042	-24	17,089
Provisions	98,055	48,126	-40,429	-14,496	53	-	16,356	208	107,873
Provisions for pensions and other post employment benefits(2)	86,552	10,250	-5,040	-	-	-31,763	10,357	984	71,341
TOTAL	184,607	58,376	-45,469	-14,496	53	-31,763	26,713	1,192	179,214

(1) Provisions for reorganization (utilizations as well as allocations during the period) mainly concerned significant restructurings in the "Industries" segment in Germany, in France and Belgium.

(2) The impact of actuarial gains / (losses) during the period is mainly explained by the increase in the discount rates in the two main regions i.e. Europe (up from 0.90% to 3.75%) and the United States (up from 2.73% to 5.02%).

In thousands of euros	December 31, 2020	1st time applicati on of IFRIC June 2021 - IAS 19	January 1, 2021	Allocation s	Utilizatio ns	Releases of surplus provision s	Reclassif i cations	Actuarial gains/(loss es)	Change in scope of consolidat ion (derecogni tion)	Transla tion adjustm ent	December 31, 2021
Customer warranties	28,713	-	28,713	21,719	-13,118	-7,331	-709	-	-	258	29,532
Reorganization plans(2)	48,266	-	48,266	3,520	-27,219	-	-	-	-	12	24,579
Provisions for taxes and tax risks	954	-	954	4,049	-387	-	-43	-	-	83	4,656
Contract risks	22,262	-	22,262	14,008	-8,908	-4,958	-99	-	-	237	22,542
Provisions for claims and litigation	11,269	-	11,269	1,222	-1,692	-639	-	-	-	70	10,230
Other	7,348	-	7,348	1,617	-2,125	-193	-131	-	-	-2	6,514
Provisions	118,814	-	118,814	46,135	-53,449	-13,121	-982	-	-	658	98,055
Provisions for pensions and other post employment benefits	100,331	-3,466	96,865	11,433	-10,025	-	-	-13,361	4	1,636	86,552
TOTAL	219,145	-3,466	215,679	57,568	-63,474	-13,121	-982	-13,361	4	2,294	184,607

(1) See the 2021 Annual report, Notes 1.1 "Accounting standards applied", 1.4.2 "Provisions for pensions and other post-employment benefits" and 5.2.5 "Provisions for pensions and other post-employment benefits".

(2) The utilization of reorganization provisions mainly concerned significant restructurings in Germany and Belgium in the "Industries" segment.

(3) The decrease in actuarial gains / (losses) during the period was mainly explained by the increase in the discount rate in the two main regions i.e. Europe (up from 0.35% to 0.90%) and the United States (up from 2.46% to 2.73%).

5.2.5. Provisions for pensions and other post-employment benefits

Post-employment benefits:

The generic term "post-employment benefits" covers both pension and other employee benefits.

Provisions for pensions:

Provisions for pensions mainly concern:

• end of career benefits;
• supplementary pension plans; and
• healthcare coverage plans.

In France, social benefits relate to supplementary pension plans only for executive corporate officers and end-of-career benefits ("IFC"). Supplementary pension plans, when they related to the other geographical regions, concern all employees.

2021 Fiscal year:

A supplementary defined-benefit pension plan with certain rights was set up within Plastic Omnium Gestion in December 2021, with retroactive effect from January 1, 2020. Under this new plan, pension rights are not conditional on the completion of the participants' careers in the Group. The beneficiaries are all corporate officers and employees of Plastic Omnium Gestion whose employment corresponds to coefficient 940 of the National Collective Agreement for the Plastics Industry from the implementation of this new plan until the valuation date, subject to having completed a minimum of three years' service with the companies offering the scheme and being under 60 years of age on January 1, 2020. The implementation of this new plan was accompanied by a modification of the existing plan so that the sum of these two pensions cannot exceed 10% of the reference compensation at the time of retirement.

2022 Fiscal year:

Given the significant increase in discount rates, inflation and salary increases in certain regions, the Group carried out a comprehensive assessment of liabilities related to post-employment benefits classified as defined-benefit pensions.

Plans for the payment of healthcare costs mainly concern the North America region (United States).

Other long-term employee benefits:

Other long-term employee benefits cover long-service awards and other service awards within the Group.

Post-employment benefit plans are subject to the regulations applicable in each country. The benefits recognized in the financial statements are therefore not a function of the number of employees by region.

The regions identified and presented are those for which the regulations are consistent, allowing data to be aggregated. Where no such aggregation is possible, no reference actuarial rate is given, as a mismatch in the parameters does not enable an average to be calculated. Similarly, sensitivity tests are carried out on significant, homogeneous data and by region.

5.2.5.1 Actuarial Assumptions

The increase in discount rates in 2022 led the Group to revalue its employee-related commitments for the Euro zone and the United States. The rates used at December 31, 2022 were respectively:

• 3,75% for the Euro zone (0.90% at December 31, 2021)
• 5,02% for the United States (2.73% at December 31, 2021)

The main significant actuarial assumptions used to value post-retirement and long-term benefits are the following:

	December 31, 2022		December 31, 2021
	France	United States	France	United States
	Managers and non managers		Managers and non managers
Minimum age for receiving a full pension	60-62 years	65 years	60-62 years	65 years
Age from which no reduction applies	65-67 years		65-67 years
Annual discount rate – post-employment benefits	3.75%	5.02%	0.90%	2.73%
Annual discount rate – long-service awards	3.55%		0.60%
Inflation rate(1)	2.25%		1.70%
Rate of future salary increases	M = 2.25% to 5.25% NM= 2.25% to 3.25%	3.50%	2.70%	3.50%
Rate of increase in healthcare costs
For those under 65 years old For those over 65 years old Expected long-term rate of return on pension plan assets	3.75%	7.00% 4.75% 5.02%	0.90%	7.25% 4.75% 2.73%

Annual discount rate of post-employment benefits:

The Group uses, as a reference, the rate of bonds issued by good quality (AA) commercial and industrial companies and with maturity equal to the length of the commitment being valued.

Inflation rates:

In France, benefits are linked to inflation rates. The impact of inflation rates is not material in the United States.

Average rate of future salary increases:

The average rates of future salary increases are weighted between "managers" and "non-managers" and the age of employees.

Expected long-term rate of return on pension plan assets:

These rates are based on long-term market forecasts and take account of each plan's asset allocation. For other foreign subsidiaries, rate differentials are determined based on local conditions.

5.2.5.2. Changes in balance sheet commitments and benefit costs corresponding to defined-benefit plans

The balance sheet amounts for these benefits are as follows:

		Post-employment benefit plans			Other long-term benefits		Total
In thousands of euros	December 31, 2022	December 31, 2021	December 31, 2020	December 31, 2022	December 31, 2021	December 31, 2020	December 31, 2022	December 31, 2021	December 31, 2020
Projected benefit obligation at December 31	177,713	176,400	172,547	3,746	3,768	3,691	181,459	180,168	176,238
1st - time application of IFRIC June 2021 - IAS 19(1)	-	-3,466	-	-	-	-	-	-3,466	-
Projected benefit obligation at January 1	177,713	172,934	172,547	3,746	3,768	3,691	181,459	176,702	176,238
Service cost	9,729	7,066	6,857	355	353	285	10,084	7,419	7,142
Interest cost	3,694	2,838	2,980	32	19	15	3,726	2,857	2,995
Curtailments, settlements and other	-5	-862	-2,409	-	-281	-	-5	-1,143	-2,409
Actuarial gains and losses	-48,929	-6,821	9,835	-563	196	-	-49,492	-6,625	9,835
Of which, experience adjustments	1,155	-838	-1,042	191	147	-158	1,346	-691	-1,200
Benefits paid from plan assets	-2,177	-1,553	-786	-	-27	5	-2,177	-1,580	-781
Benefits paid by the Company	-2,888	-2,402	-4,792	-303	-331	-180	-3,191	-2,733	-4,972
Change in scope	27,271	-	-	2,388	-	-	29,659	-	-
Translation adjustment	5,292	6,513	-7,832	42	49	-48	5,334	6,562	-7,880
Projected benefit obligation at December 31	169,700	177,713	176,400	5,697	3,746	3,768	175,397	181,459	180,168
Change in projected benefit obligation	-8,013	1,313	3,853	1,951	-22	77	-6,062	1,291	3,930
Fair value of plan assets at January 1	94,907	79,628	68,568	-	209	-	94,907	79,837	68,568
Return on plan assets	2,251	1,568	1,546	-	-	-	2,251	1,568	1,546
Employee and employer contributions	2,990	3,406	11,711	-	-	-	2,990	3,406	11,711
Actuarial gains and losses	-17,729	6,735	5,966	-	-	209	-17,729	6,735	6,175
Benefit payments funded by plan assets	-2,015	-1,565	-3,355	-	-	-	-2,015	-1,565	-3,355
Change in scope	19,302	-	-	-	-	-	19,302	-	-
Reclassifications	-	209	-	-	-209	-	-	-	-
Translation adjustment	4,350	4,926	-4,808	-	-	-	4,350	4,926	-4,808
Fair value of plan assets at December 31	104,056	94,907	79,628	-	-	209	104,056	94,907	79,837
Change in fair value of plan assets	9,149	15,279	11,060	-	-209	209	9,149	15,070	11,269
Excess of projected benefit obligation over plan assets = net provision recorded in the balance sheet	65,644	82,806	96,772	5,697	3,746	3,559	71,341	86,552	100,331
- of which France	37,540	45,305	47,473	2,349	2,433	2,252	39,889	47,738	49,725
- of which Europe excluding France	3,110	7,368	10,651	2,222	462	747	5,332	7,830	11,398
- of which United States - of which other regions	6,798 18,196	15,711 14,422	25,458 13,190	1,096 30	732 119	560 -	7,894 18,226	16,443 14,541	26,018 13,190

(1) See Notes 1.1 "Accounting standards applied", 1.4.2 "Provisions for pensions and similar" and 5.2.4 "Provisions".

The actuarial debt partially hedged by assets amounted to €120,777 thousand at December 31, 2022, including €17,199 thousand for French plans and €63,548 thousand for the United States. At December 31, 2021, it amounted to €122,782 thousand, including €18,682 thousand for France and €83,737 thousand for the United States.

Over the two periods 2022 and 2021:

The decrease in the actuarial debt partially hedged by assets is due to the increase in discount rates in the two regions of Europe and the United States despite the inclusion in 2022 of three new acquisitions in the 2nd half-year (of which the actuarial debt partially hedged by assets amounts to €21,079 thousand).

	December 31, 2022		December 31, 2021			December 31, 2020
	France	United States	France	United States		France	United States
Changes in interest rates	3.75%	5.02%	0.90%	2.73%		0.35%	2.46%

5.2.5.3 Analysis of net obligations by region

Details of net obligations by region are presented in the table below:

		December 31, 2022			December 31, 2021
In thousands of euros	France	Europe excluding France	United States	Other	France	Europe excluding France	United States	Other
Post-employment benefit plan
Indemnity payable on retirement	35,625	4,579	-	15,578	42,703	2,764	-	14,214
Supplementary pension plans	1,915	-1,469	4,126	2,357	2,602	4,604	12,115	-
Healthcare plans			2,672	261			3,595	208
Total post-employment benefit obligations	37,540	3,110	6,798	18,196	45,305	7,368	15,711	14,422
Other long-term benefits	2,349	2,222	1,096	30	2,433	462	732	119
Total Other post-employment benefit obligations	2,349	2,222	1,096	30	2,433	462	732	119
Net obligations recognized in the balance sheet	39,889	5,332	7,894	18,226	47,738	7,830	16,443	14,541

			December 31, 2022	December 31, 2021
		France	United States	France	United States
Average maturity of obligations	In years	10	14	12	19
Amount of obligations	In thousands of euros	35,375	63,247	58,657	83,737
of which:
Retirement obligations		-	16,398	-	15,458
Vested deferred obligations		-	15,791	-	21,269
Active obligations		35,375	31,057	58,657	47,010

5.2.5.4 Sensitivity tests on retirement obligations

The retirement obligation sensitivity tests on the main external variable, the discount rate, in 2022 and in 2021 show the following impacts:

	December 31, 2022						December 31, 2021
In thousands of euros		Increase		Decrease			Increase		Decrease
	Basis	+ 0,25%		- 0,25%		Basis	+ 0,25%		- 0,25%
		Amount	%	Amount	%		Amount	%	Amount	%
France
Effect on service cost and interest cost	7,806	6,805	- 12.82%	7,064	-9.51%	7,371	6,448	- 12.53%	6,689	-9.26%
Effect on projected benefit obligation	50,221	48,594	-3.24%	50,972	1.49%	57,172	55,658	-2.65%	58,750	2.76%
United States
Effect on service cost and interest cost	3,101	3,102	0.03%	3,079	-0.70%	1,926	1,998	3.74%	1,843	-4.30%
Effect on projected benefit obligation	63,548	61,338	-3.48%	65,595	3.22%	83,470	79,699	-4.52%	87,430	4.74%

5.2.5.5 Changes in net balance sheet benefit positions

Changes in net balance sheet positions related to the full range of benefits are as follows:

In thousands of euros	Post-employment benefit plans				Other long-term benefits		Total
	December 31, 2022	December 31, 2021	December 31, 2020	December 31, 2022	December 31, 2021	December 31, 2020	December 31, 2022	December 31, 2021	December 31, 2020
Net projected benefit obligation at December 31	82,806	96,772	103,979	3,746	3,559	3,691	86,552	100,330	107,670
1st - time application of IFRIC June 2021 - IAS 19(1)	-	-3,466	-	-	-	-	-	-3,466	-
Net projected benefit obligation at January 1	82,806	93,306	103,979	3,746	3,559	3,691	86,552	96,864	107,670
Expense/income for the year
Service cost	9,729	7,066	6,857	355	353	285	10,084	7,419	7,142
Curtailments, settlements and other	-5	-862	-2,409	-	-281	-		-5 -1,143(1)	-2,409
Benefits paid by the Company	-2,888	-2,402	-4,792	-303	-331	-180	-3,191	-2,733	-4,972
Actuarial gains and losses	-	-	-	-563	-	-	-563	-	-
Benefit payments funded by assets	-162	12	2,569	-	-27	5	-162	-15	2,574
Employee and employer contributions	-2,990	-3,406	-11,711	-	-	-	-2,990	-3,406	-11,711
Net non-recurring post-employment benefit plan costs recorded in operating expenses	3,684	408	-9,486	-511	-286	110	3,173	122	-9,376
Interest cost	3,694	2,838	2,980	32	19	15	3,726	2,857	2,995
Expected return on plan assets	-2,251	-1,568	-1,546	-	-	-	-2,251	-1,568	-1,546
Interest costs of post-employment benefit obligations (2)	1,443	1,270	1,434	32	19	15		1,475 1,289(1)	1,449
Balance sheet impact
Reclassification	-	-209	-	-	209	-	-	-	-
Actuarial gains and losses	-31,200	-13,556	3,868	-	196	-209	-31,200	-13,360	3,659
Translation adjustment	942	1,587	-3,023	42	49	-48	984	1,636	-3,071
Balance sheet impact	-22,289	-12,178	845	2,430	454	-257	-19,859	-11,724	588
Net projected benefit obligation at December 31	65,644	82,806	96,772	5,697	3,746	3,559	71,341	86,552	100,331

(1) See Notes 1.1 "Accounting standards applied", 1.4.2 "Provisions for pensions and other post employment benefits" and 5.2.4 "Provisions".

(2) See "Interest on post-employment benefit obligations" in Note 4.7 ''Net financial income (expense)''.

5.2.5.6 Healthcare cost sensitivity tests in the United States

The following table shows the impact of a 1-point change in the rate of increase of healthcare costs in the United States.

In thousands of euros	December 31, 2022		December 31, 2021
	Increase	Decrease	Increase	Decrease
Effect on provisions	296	-347	506	-614

5.2.5.7 Breakdown of plan assets by category

The plan assets at fair value break down by category as follows:

In thousands of euros	December 31, 2022	December 31, 2021
Equities	43,038	53,011
Bonds	22,677	24,219
Real estate	873	919
Banks and Insurance	26,225	16,692
Other	11,243	66
Total	104,056	94,907

5.2.5.8 Contributions paid in respect of defined-contribution plans

Contributions paid in respect of defined-contribution plans amount to €14,595.2 thousand in 2022 compared with €10,195.8 thousand in 2021.

5.2.6. Current and non-current borrowings

5.2.6.1 Definition of debt within the Group

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:

• long-term borrowings:
  • o drawdowns on lines of credit,
  • o private placement notes,
  • o bonds;
• minus loans, negotiable debt securities and other long-term financial assets;
• plus short-term loans;
• plus overdraft facilities; and
• minus cash and cash equivalents.

5.2.6.2 Borrowings: private placement notes and bonds

In 2022:

A new €400 million "Schuldschein" private placement:

On May 24, 2022, the Group completed a "Schuldschein" private placement, without covenants, for €400 million (divided into six tranches with different terms and interest rates). See Note 2.2.6.1 in "Other significant events of the period".

• maturities: 3, 5 and 7 years;
• fixed rate portion: €159 million;
• floating rate portion: €241 million.

December 31, 2022		"Schuldschein" private placement of May 24, 2022(1)
Issue - Fixed rate	(in euros)	15,000,000	36,000,000	108,000,000(1)
Issue - variable rate	(in euros)	80,000,000	139,000,000	22,000,000(1)
Interest rate / annual coupon		2.8%	3.1%	2.9%
		Foreign investors (German, Swiss, Slovak etc.) and French
Investors		No covenant or rating obligations
Maturity		May 23, 2025	May 24, 2027	May 23, 2029

(1) See also Note 2.2.6.1 in the "Other significant events of the period".

Partial repayment of the Schuldschein issued on June 16, 2016:

In parallel with the "Schuldschein" private placement transaction issued on May, 24, 2022, the Group repaid €141 million on the Schuldschein of June 16, 2016 issued for a total amount of €300 million, which was due on June 17, 2023.

Excluding the "Schuldschein" private placement transaction issued on May, 24, 2022, the main terms of the bonds and private placements as at December 31, 2022 are summarized in the following table:

December 31, 2022		"Schuldscheindarlehen" private placement of June 16, 2016		Private placement bond issue of June 26, 2017	"Schuldscheindarlehen" private placement of December 21, 2018
Issue - Fixed rate	(in euros)	159,000,000		500,000,000	300,000,000
Issue - variable rate	(in euros)
Interest rate / annual coupon		1.478%		1.250%	1.632%
Investors		International (Asian, German, Dutch, Swiss, Luxembourg, Belgian) and French investors		European 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

(1) : Early reimbursement during the first half 2022, of an amount of 141 million euros, on the initial amount of the placement of €300 million.

5.2.6.3 Bank loans

Compagnie Plastic Omnium has not made any new drawdowns in 2022 compared to December 31, 2021. It retains the same lines as those negotiated on December 31, 2021.

5.2.6.4. Short-term borrowings: issuance of "Negotiable European Commercial Paper" (Neu-CP)

The Group increased its outstanding of Negotiable European Commercial Paper (Neu-CP) over 2022.

The characteristics are presented in the table below:

December 31, 2022	Neu-CP during the period
Issuance (in euros)	508,500,000
Investors	European investors
Maturity	Less than 1 year

5.2.6.6 Confirmed medium-term credit lines

At December 31, 2022, the Group benefited from several confirmed bank credit lines whose amount exceeds the Group's needs.

At December 31, 2022, as at the same period last year, these confirmed bank lines of credit amounted to €1,930 million, nearly all of which was undrawn. The average maturity is three years at December 31, 2022 compared to four years at December 31, 2021.

5.2.6.7 Reconciliation of gross and net financial debt

In thousands of euros	December 31, 2022			December 31, 2021
	Total	Current portion	Non-current portion	Total	Current portion	Non-current portion
Finance lease liabilities (1)	291,547	61,418	230,129	214,730	48,750	165,980
Bonds and bank loans	1,997,707	783,767	1,213,940	1,539,381	422,179	1,117,202
of which the 2022 "Schuldschein" private placement (2)	401,988	3,329	398,659	-	-	-
of which the 2018 "Schuldscheindarlehen" private placement	299,567	148	299,419	299,257	148	299,109
of which the bond issue in 2017	502,005	3,236	498,769	501,177	3,238	497,939
of which the 2016 "Schuldschein" private placement (2)	160,212	160,212	-	302,069	2,405	299,664
of which Neu-CP (3)	508,500	508,500	-	322,500	322,500	-
of which bank lines of credit (4)	125,435	108,342	17,093	114,377	93,888	20,490
Current and non-current borrowings and other debt (+)	2,289,254	845,185	1,444,069	1,754,111	470,929	1,283,182
Other current and non-current debt related to the acquisition of a stake in EKPO (+)(5)	40,000	10,000	30,000	70,000	30,000	40,000
Hedging instruments - liabilities (+)(6)	709	709		1,434	1,434
Total borrowings (B)	2,329,963	855,894	1,474,069	1,825,545	502,363	1,323,182
Long-term investments in equity instruments and funds (-)(7)	-76,298	-	-76,298	-78,071		-78,071
Other financial assets (-)	-13,186	-754	-12,432	-12,351	-3,000	-9,351
of which non-current financial receivables(8)	-12,432		-12,432	-9,351		-9,351
of which financial receivables	-754	-754	-	-3,000	-3,000	-
Other current financial assets and receivables (-)	-201	-201		-43	-43
Hedging instruments - assets (-)(6)	-11,152	-11,152		-91	-91
Total financial receivables (C)	-100,837	-12,107	-88,730	-90,555	-3,133	-87,422
a
Gross debt (D) = (B) + (C)	2,229,126	843,787	1,385,339	1,734,990	499,230	1,235,760
Cash and cash equivalents (-) (9)	575,625	575,625		892,636	892,636
Short-term bank loans and overdrafts (+)	-15,022	-15,022		-11,264	-11,264
Net cash and cash equivalents as recorded in the Statement of Cash Flows (A)(10)	-560,604	-560,604		-881,372	-881,372
NET FINANCIAL DEBT (E) = (D) + (A)	1,668,524	283,184	1,385,339	853,618	-382,142	1,235,760

During fiscal year 2022, the change of net debt from lease contracts amounted to +€76,8 million, including +€95,1 million contibuted by the acquired compagnies in their provisional opening balance sheets, +€63,0 million in increases related to new contracts and -€81,3 million related to repayment on active contracts versus a change in net debt of -€10.7 million in fiscal year 2021 (+€56.4 million on new contracts and -€67.2 million in repayments on active contracts).

(2) See Notes 2.2.6.1 in "Other significant events of the period " and 5.2.6.2 "Borrowings: private placement notes and bonds".

(3) See Notes 2.2.6.2 in "Other significant events of the period" and 5.2.6.4 "Short-term borrowings: issuance of "Negotiable European Commercial Paper" (Neu-CP)".

• (4) See Notes 5.2.6.3 "Bank loans" and 5.2.6.6 "Confirmed medium-term credit lines".
• (5) See Note 2.2.2.1.1 "Acquisition price" in "Other significant events of the period" in the consolidated financial statements at December 31, 2021.
• (6) See Note 5.2.7 "Interest rate and currency hedges".

(1)

• (7) See Note 5.1.5.1 "Long-term investments in equity instruments and funds".
• (8) See Note 5.1.5.2 "Other non-current financial assets".
• (9) See Note 5.1.9.1 "Gross cash and cash equivalents".
• (10) See Note 5.1.9.2 "Net cash and cash equivalents at end of period".

5.2.6.8 Analysis of gross financial debt by currency

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 financial debt	December 31, 2022	December 31, 2021
Euro	70%	58%
US dollar	21%	29%
Chinese yuan	5%	7%
Pound sterling	1%	2%
Japanese yen	1%	1%
Brazilian real	1%	1%
Indian rupee	-	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 over the two periods.

5.2.6.9 Analysis of gross financial debt by type of interest rate

As a % of financial debt	December 31, 2022	December 31, 2021
Hedged variable rates	-	-
Unhedged variable rates	38%	27%
Fixed rates	62%	73%
Total	100%	100%

5.2.7. Interest rate and currency hedges

The Group does not have any interest rate contracts.

	December 31, 2022		December 31, 2021
In thousands of euros	Assets	Liabilities	Assets	Liabilities
Exchange rate derivatives	11,152	-709	91	-1,434
Total balance sheet	11,152	-709	91	-1,434

5.2.7.1 Currency hedges

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 planned by the applicable IFRS: 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 forecast cash-flows affect income.

At December 31, 2022, the fair value of the instruments subscribed and thus recognized was €10,443 thousand, including €137 thousand recognized in equity.

Changes in the fair value of currency hedging instruments are recognized in net financial income (expense).

5.2.7.1.1. Portfolio of currency hedges

	December 31, 2022			December 31, 2021
	Fair value (in thousands of euros)	Notional amount (in thousands of currency units)	Medium term exchange rate	Exchange rate at December 31, 2022	Fair value (in thousands	of euros)			Notional amount (in thousands of currency	Medium term exchange rate	Exchange rate at December 31, 2021
			Currency / Euro	Currency / Euro		units)	Currency / Euro	Currency / Euro
Net sell position (net buy position if >0)
USD / EUR - Forward exchange contract	-15	-2,108	1.0973	1.0666	-40	-885	1.2004	1.1326
JPY / EUR - Forward exchange contract	+146	+563,900	145.9862	140.6600	-	-	-	-
GBP / EUR - Forward exchange contract	+6	-742	0.8944	0.8869	-282	-2,973	0.9134	0.8403
USD / EUR - Forward currency swap	+10,184	-473,700	1.0448	1.0666	-973	-317,300	1.1375	1.1326
GBP / EUR - Forward currency swap	+13	-9,000,000	0.8858	0.8869	+6	-5,000	0.8394	0.8403
CHF / EUR - Forward currency swap	-4	-1,380	0.9866	0.9847	-21	-2,500	1.0419	1.0331
RUB / EUR - Forward currency swap	-	-	-	-	+5	-22,000	83.9385	85.3004
CNY / EUR - Forward currency swap	+416	-390,000	7.2934	7.3582	-117	-390,000	7.2475	7.1947
CNY / USD - Forward currency swap	+3	+13,300	6.9135	6.8987	+25	-85,067	6.3960	6.3524
JPY / EUR - Forward currency swap	-340	-2,610,000	143.2891	140.6600	+55	-1,450,000	129.7406	130.3800
IDR / EUR - Forward currency swap	+276	-46,085,000	15,160.0000	16,519.8200	-	-	16 300,0000	16 100,4200
KRW/EUR - Forward currency swap	-242	-10,000,000	1,393.5000	1,344.0900	-	-	-	-
TOTAL	+10,443				-1,342

5.2.7.1.2. Impact of unsettled foreign exchange hedges on income and equity

In thousands of euros	December 31, 2022	December 31, 2021
Impact of change in foreign exchange hedging portfolio on income (ineffective portion)(1)	11,184	-8,447
Impact of change in foreign currency hedging portfolio on equity (effective portion)	601	-405
Total	11,785	-8,852

(1) See "Gains or losses on interest rate and currency hedges" in Note 4.7 "Net financial income (expense)".

5.2.8. Operating and other liabilities

5.2.8.1. Trade payables

In thousands of euros	December 31, 2022	December 31, 2021
Trade payables	1,563,563	1,190,948
Due to suppliers of fixed assets	88,314	73,478
Total	1,651,877	1,264,426

5.2.8.2. Other operating liabilities

In thousands of euros	December 31, 2022	December 31, 2021
Employee benefits expense	206,927	169,061
Income taxes	35,032	24,992
Other taxes	167,472	130,824
Other payables	397,998	323,088
Customer prepayments - Deferred revenues	347,380	311,674
Total	1,154,809	959,639

5.2.8.3. Trade payables and other operating liabilities by currency

	In thousands of currency units		Liabilities at December 31, 2022			Liabilities at December 31, 2021
		Local currency	Euro	%	Local currency	Euro	%
EUR	Euro	1,616,194	1,616,194	58%	1,211,802	1,211,802	54%
USD	US dollar	733,372	687,579	24%	605,714	534,799	24%
GBP	Pound sterling	64,731	72,983	3%	88,557	105,390	5%
CNY	Chinese yuan	1,079,500	146,707	5%	1,099,715	152,851	7%
BRL	Brazilian real	304,657	54,031	2%	225,527	35,741	2%
Other	Other currencies		229,192	8%		183,482	8%
Total			2,806,686	100%		2,224,065	100%
Of which:
	● Trade payables		1,651,877	59%		1,264,426	57%
	● Other operating liabilities		1,154,809	41%		959,639	43%

Sensitivity tests on changes in foreign exchange rates of " Trade payables and other liabilities " give the following results:

units	In thousands of currency	Sensitivity tests on liabilities at Sensitivity tests on liabilities at December 31, 2022 December 31, 2021
		Base		currencies	Increase – all	Decrease – all currencies		Base						Increase – all currencies		Decrease – all currencies
				+10%	+20%	-10%	-20%			+10%	+20%	-10%	-20%
		Local currency	Conver sion rate	%	%	%	%	Local Conversio currency n rate		%	%	%	%
EUR	Euro	1,616,194	1.0000	54%	53%	60%	63%	1,211,802	1.0000	52%	50%	57%	60%
USD	US dollar	733,372	0.9376	26%	27%	23%	21%	605,714	0.8829	25%	26%	23%	21%
GBP	Pound sterling	64,731	1.1275	3%	3%	2%	2%	88,557	1.1901	5%	5%	4%	4%
CNY	Chinese yuan	1,079,500	0.1359	6%	6%	5%	5%	1,099,715	0.1390	7%	8%	6%	6%
BRL	Brazilian real	304,657	0.1774	2%	2%	2%	2%	225,527	0.1585	2%	2%	2%	1%
Other	Other currencies			9%	9%	8%	7%			9%	9%	8%	8%
	Total in euros		2,806,686	2,925,683	3,044,728	2,687,595	2,568,550		2,224,065	2,325,274	2,426,499	2,122,825	2,021,599
Of which:
	● Trade payables		1,651,877	1,721,913	1,791,977	1,581,786	1,511,722		1,264,426	1,321,974	1,379,523	1,206,877	1,149,328
	● Other operating liabilities		1,154,809	1,203,770	1,252,751	1,105,809	1,056,828		959,639	1,003,300	1,046,976	915,948	872,271

Foreign exchange sensitivity tests on "Trade payables and other liabilities" and "Trade and other receivables" (see Note 5.1.7) show an immaterial net sensitivity to exchange rate fluctuations as of December 31, 2022.

6. CAPITAL MANAGEMENT AND MARKET RISKS

Compagnie Plastic Omnium has set up a global cash management system centralized within its subsidiary Plastic Omnium Finance, which manages liquidity, currency and interest rate risks on behalf of all subsidiaries. The market risk strategy, which may take the form of on- and off-balance sheet commitments, is validated quarterly by the Group's Senior Executives.

6.1. Capital 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.

Gearing:

The Group uses the gearing ratio, corresponding to the ratio of consolidated net debt to equity, as an indicator of the Group's leverage. The Group includes in net debt all financial liabilities and commitments, other than operating payables, interest-bearing liabilities, less cash and cash equivalents and other non-operating financial assets, such as marketable securities and loans.

At December 31, 2022 and December 31, 2021, the gearing ratio was as follows:

In thousands of euros	December 31, 2022	December 31, 2021
Net financial debt(1)	1,668,524	853,618
Equity (including non-current grants)	1,933,398	2,058,254
Gearing ratio	86.30%	41.47%

(1) See Note 5.2.6.7 "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.

As part of its capital management, the liquidity account shows the following positions:

• at December 31, 2022:
  • o 273,172 securities (shares); and
  • o €981,937 in cash
• at December 31, 2021:
  • o 139,300 securities (shares); and
  • o €3,004,264 in cash

6.2. Commodities risk - Exposure to plastics risk

Plastic Omnium's business requires the purchase of large quantities of plastic, steel, paint and other raw materials subject to price changes that could have an impact on its operating margin.

To limit the risks associated with such price fluctuations, the Group has negotiated selling price indexation clauses with most of its customers or, failing that, regularly renegotiates selling prices.

In view of these measures, the Group considers that raw material price fluctuations do not have a material impact on its operating margin.

6.3. Credit risk

Credit risk covers customer credit risk and bank counterparty risk.

6.3.1. Customer risk

At December 31, 2022, 10.3% of the Group's "Trade receivables" was past due versus 3.6% at December 31, 2021. Trade receivables break down as follows:

Ageing analysis of net receivables:

At December 31, 2022:

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	854,943	751,997	102,946	72,330	21,943	4,901	3,772
Modules	149,740	147,721	2,020	1,807	213	-	-
Unallocated items	18,578	18,578	-	-	-	-	-
Total	1,023,261	918,296	104,966	74,137	22,156	4,901	3,772

At December 31, 2021:

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	587,072	561,645	25,427	9,108	5,657	8,227	2,435
Modules	137,047	136,198	849	99	750	-	-
Unallocated items	10,158	10,158	-	-	-	-	-
Total	734,277	708,001	26,276	9,207	6,407	8,227	2,435

The risk of non-recovery of trade receivables is low and involves only an immaterial amount of receivables more than twelve months past due.

6.3.2. Bank counterparty risk

The Group invests its cash surplus with leading banks and/or in highly-rated securities.

6.4. Liquidity risk

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 goal is mainly achieved by using medium-term lines of credit with banking institutions but also by short-term 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 Executives.

6.4.1. Other long-term financial receivables - carrying amounts and undiscounted values

Undiscounted values can be reconciled with the information in the table in Note 6.4.2 on "Liquidity risk by maturity". None at December 31, 2022.

6.4.2. Liquidity risk by maturity

Liquidity risk by maturity is calculated on the basis of the undiscounted contractual cash-flows of financial assets and liabilities. The liquidity risk analysis shows the following:

At December 31, 2022:

In thousands of euros	December 31, 2022	Less than 1 year	1 to 5 years	More than 5 years
FINANCIAL ASSETS
Non-consolidated equity interests	20,334	-	20,334	-
Long-term investments in equities and funds	76,298	-	76,298	-
Other financial assets	12,432	-	12,432	-
Finance receivables(1)	754	754	-	-
Trade receivables(2)	1,023,261	1,019,489	3,772	-
Other current financial assets and financial receivables	201	201	-	-
Hedging instruments	11,152	11,152	-	-
Cash and cash equivalents	575,625	575,625	-	-
Total financial assets	1,720,057	1,607,221	112,836	-
FINANCIAL LIABILITIES
Non-current borrowings (1)	1,517,518	-	1,287,458	230,060
Bank overdrafts	15,022	15,022	-	-
Current borrowings (2)	891,767	891,767	-	-
Hedging instruments	709	709	-	-
Trade payables	1,651,877	1,651,877	-	-
Total financial liabilities	4,076,894	2,559,375	1,287,458	230,060
FINANCIAL ASSETS AND FINANCIAL LIABILITIES - NET	-2,356,837	-952,154	-1,174,622	-230,060

(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.

At December 31, 2021:

December 31, 2021	Less than 1 year	1 to 5 years	More than 5 years
136	-	136	-
78,071	-	78,071	-
9,351	-	9,351	-
3,000	3,000	-	-
734,277	731,842	2,435	-
43	43	-	-
91	91	-	-
892,636	892,636	-	-
1,717,605	1,627,612	89,993	-

FINANCIAL LIABILITIES
Non-current borrowings (1)	1,358,561	-	1,302,370	56,191
Bank overdrafts	11,264	11,264	-	-
Current borrowings (2)	516,509	516,509	-	-
Hedging instruments	1,434	1,434	-	-
Trade payables	1,264,426	1,264,426	-	-
Total financial liabilities	3,152,194	1,793,633	1,302,370	56,191
FINANCIAL ASSETS AND FINANCIAL LIABILITIES - NET	-1,434,589	-166,021	-1,212,377	-56,191

(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.

6.5. Currency risk

Plastic Omnium's business is based for the most part on local plants: by producing locally what is sold locally, the Group has little exposure to currency fluctuations, except for the translation of financial statements of companies whose functional currency is not the euro.

The Group's policy is to minimize the currency risk arising from transactions that will result in future payment or future revenue. If a transaction does give rise to a material currency risk, it is hedged with a forward currency contract. The subsidiary involved places this hedge with the Group Treasury Department or, with the latter's approval, locally.

6.6. Interest rate risk

Interest rate risk relates to the possibility of an increase in variable rates for variable rate debt, which would adversely affect net financial income (expense). Interest rate risk is managed on the basis of the Group's consolidated debt with the main objective of maintaining a durably low consolidated financing cost in light of the Group's operating profitability.

At December 31, 2022 as at December 31, 2021, the Group's core funding was at fixed rates (see Note 5.2.6.9 "Analysis of gross financial debt by type of interest rate").

Financial transactions, particularly interest rate hedges, are carried out with a broad panel of leading financial institutions. A competitive bidding process is carried out for any significant financial transactions and maintaining a satisfactory diversification of resources and participants is a selection criterion.

6.7. Additional information about financial assets and liabilities

Most derivatives are traded over-the-counter for which there are no listed prices. Therefore, their valuation is based on models commonly used by traders to value these financial instruments (models for discounting future cash-flows or option valuation models).

Financial assets and liabilities by category and fair value break down as follows:

		2022
In thousands of euros			At fair value				Instrument	Valuations	Valuations
ASSETS	At amortized cost	Through profit or loss	Through shareholder s' equity	Through shareholders' equity (CFH)(2)	Total carrying amount	Valued at cost	listed on an active market (level 1)	based on observable market data (level 2)	based on unobservable market data (level 3)
Non-consolidated equity investments	-	-	20,334	-	20,334	20,339	-	-	-
Long-term investments in equities and funds	-	-	76,298	-	76,298	-	76,298	-	-
Other non-current financial assets	12,432	-	-	-	12,432	-	-	-	-
Financial receivables	754	-	-	-	754	-	-	-	-
Trade receivables	1,023,261	-	-	-	1,023,261	-	-	-	-
Other current financial assets and receivables	201	-	-	-	201	-	-	-	-
Hedging instruments	-	11,152	-	-	11,152	-	-	11,152	-
Cash and cash equivalents	-	575,625	-	-	575,625	-	-	575,625	-

In thousands of euros				Instrument	Valuations	Valuations
LIABILITIES	At amortized cost	Through profit or loss	Through shareholder s' equity	Through shareholders' equity (CFH)	Total carrying amount	Valued at cost	listed on an active market (level 1)	based on observable market data (level 2)	based on unobservable market data (level 3)
Non-current borrowings (1)	1,474,069	-	-	-	1,474,069	-	-	-	-
Bank overdrafts	15,022	-	-	-	15,022	-	-	-	-
Current borrowings	855,185	-	-	-	855,185	-	-	-	-
Hedging instruments	-	461	-	248	709	-	-	709	-
Trade payables	1,651,877	-	-	-	1,651,877	-	-	-	-

In 2022, as in 2021, there was no transfer between fair value levels.

					2021
In thousands of euros		At fair value						Valuations	Valuations
ASSETS	At amortized cost	Through profit or loss	Through shareholders' equity	Through shareholders' equity (CFH )(2)	Total carrying amount	Valued at cost	Instrument listed on an active market (level 1)	based on observable market data (level 2)	based on unobservable market data (level 3)
Non-consolidated equity investments	-	-	136	-	136	136	-	-	-
Long-term investments in equities and funds	-	-	78,071	-	78,071	-	78,071	-	-
Other non-current financial assets	9,351	-	-	-	9,351	-	-	-	-
Financial receivables	3,000	-	-	-	3,000	-	-	-	-
Trade receivables	734,277	-	-	-	734,277	-	-	-	-
Other current financial assets and receivables	43	-	-	-	43	-	-	-	-
Hedging instruments	-	91	-	-	91	-	-	91	-
Cash and cash equivalents	-	892,636	-	-	892,636	-	-	892,636	-

In thousands of euros			At fair value					Valuations	Valuations
LIABILITIES	At amortized cost	Through profit or loss	Through shareholders' equity	Through shareholders' equity (CFH )(2)	Total carrying amount	Valued at cost	Instrument listed on an active market (level 1)	based on observable market data (level 2)	based on unobservable market data (level 3)
Non-current borrowings (1)	1,323,182	-		-	1,323,182	-	-	-	-
Bank overdrafts	11,264	-		-	11,264	-	-	-	-
Current borrowings	500,929	-		-	500,929	-	-	-	-
Hedging instruments	-	1,029		405	1,434	-	-	1,434	-
Trade payables	1,264,426	-		-	1,264,426	-	-	-	-

(1) See Note 5.2.6.7 "Reconciliation of gross and net financial debt". This item includes "Finance lease liabilities" and "Bonds and bank loans".

(2) CFH: "Cash-Flow Hedge".

In 2021, as in 2020, there was no transfer between fair value levels.

The fair value of financial assets and liabilities at amortized cost is close to the carrying amount, except for borrowings.

In thousands of euros		Balance sheet values at December 31, 2022		Fair value at December 31, 2022
	Total Current		Non-current	Total	Current	Non-current
Bonds and bank loans (1)	1,997,707	783,767	1,213,940	1,881,065	770,084	1,110,981

In thousands of euros		Balance sheet values at December 31, 2021		Fair value at December 31, 2021
	Total	Current	Non-current	Total	Current	Non-current
Bonds and bank loans (1)	1,539,381	422,179	1,117,202	1,568,187	422,320	1,145,867

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

Methods for measuring fair value:

• The fair value of listed bonds is determined on the basis of quoted prices (level 1). The fair value of other borrowings is determined for each loan by discounting future cash-flows at a rate corresponding to the Euribor yield curve at year-end, corrected for the Group's credit risk (level 2).
• The fair value of monetary and non-monetary UCITS is measured according to their last known net asset value (level 1). The fair value of interest rate products (certificates of deposit, time-deposit accounts, negotiable medium-term notes, etc.) is based on discounted future cash-flows from coupons and coupons excluding accrued interest (principal and interest) for the remaining duration of the product on the balance sheet date (level 2). The discount rate used in this case is the market rate matching the maturity and products' characteristics.
• Other financial assets and financial receivables: items consisting mainly of financial receivables recorded on the basis of a discounted value when their maturity is more than one year.
• Most of the derivatives are traded over-the-counter, for which there are no listed prices. As a result, their valuation is based on models commonly used by traders to evaluate financial instruments using discounted cash-flow models or option valuation models (level 2).

7. ADDITIONAL INFORMATION

7.1. Headcount at end of year of controlled companies

	December 31, 2022			December 31, 2021
	Excluding temporary	Temporary	Total	Excluding temporary	Temporary	Total	Changes/Total
France	2,899	613	3,512	2,858	412	3,270	7%
%	9.6%	14.5%	10.2%	13.1%	12.7%	13.1%
Europe excluding France	14,836	1,874	16,710	10,375	1,291	11,666	43%
%	49.1%	44.2%	48.5%	47.6%	39.8%	46.6%
North America	7,411	433	7,844	5,173	395	5,568	41%
%	24.5%	10.2%	22.8%	23.8%	12.2%	22.3%
Asia and South America(1)	5,074	1,316	6,390	3,368	1,146	4,514	42%
%	16.8%	31.1%	18.5%	15.5%	35.3%	18.0%
Total	30,220	4,236	34,456	21,774	3,244	25,018	38%

(1) The "Asia and South America" region includes South Africa and Morocco.

7.2. Off-balance sheet commitments

7.2.1. Commitments granted / received

At December 31, 2022:

In thousands of euros	Total	On intangible assets	On property, plant and equipment	On financial assets and liabilities	On other non financial current assets/liabilities
Surety bonds granted(1)	-77,152	-	-8,300	-68,777	-75
Commitments to purchase assets (2)	-38,132	-70	-38,062	-	-
Other off-balance sheet commitments	-106	-	-31	-75	-
Total commitments given	-115,390	-70	-46,393	-68,852	-75
Surety bonds received	132	-	132	-	-
Total commitments received	132	-	132	-	-
Total commitments – net	-115,258	-70	-46,261	-68,852	-75

At December 31, 2021:

In thousands of euros	Total	On intangible assets	On property, plant and equipment	On financial assets and liabilities	On other non financial current assets/liabilities
Surety bonds granted(3)	-96,322	-	-1,110	-89,208(3.bis)	-6,004
Commitments to purchase assets (4)	-27,609	-10	-27,599	-	-
Other off-balance sheet commitments (5)	-5,394	-	-4,013	-1,381	-
Total commitments given	-129,325	-10	-32,722	-90,589	-6,004
Other commitments received(6)	9,290	-	-	-	9,290
Total commitments received	9,290	-	-	-	9,290
Total commitments – net	-120,035	-10	-32,722	-90,589	3,286

At December 31, 2022:

(1) The surety bonds granted are mainly related to:

• €40 million bank surety bond given related to the remaining payable in respect of the acquisition of a 40% stake in EKPO Fuel Cell Technologies;
• €14.6 million from Compagnie Plastic Omnium SE to Société Générale Frankfurt;
• €6.7 million in bank guarantees from PO Lighting Turkey AS to Remas Reduktor;
• €6.0 million on financial assets and liabilities of HBPO Germany GmbH to Deutsche Bank.

(2) The commitments to purchase assets are mainly related to:

• €13.4 million from Plastic Omnium Auto Inergy (USA) LLC;
• €5.3 million from Plastic Omnium Equipamientos Exteriores SA;
• €4.6 million from PO Lighting Turkey AS;
• €4.5 million from PO Lighting Mexico SA DE CV;
• €4.0 million from PO Lighting Czech S.R.O.

At December 31, 2021:

(3) The surety bonds granted were mainly related to:

• €11.4 million from Compagnie Plastic Omnium SE to Société Générale Frankfurt;
• €6.0 million on financial assets and liabilities of HBPO Germany GmbH to Deutsche Bank;
• €6.0 million in bank guarantees on non-financial current assets/liabilities of Plastic Omnium Auto Exteriors (India) Pvt Ltd to Crédit Agricole CIB.

(3.bis): this amount included the €70 million bank surety bond given in respect of the remaining payable concerning the acquisition of a 40% stake in EKPO Fuel Cell Technologies.

(4) The commitments to purchase assets were mainly related to:

• €15.2 million from Plastic Omnium Auto Inergy (USA) LLC;
• €6.8 million from Plastic Omnium Auto Exterieur SA;
• €3.7 million from Plastic Omnium Equipamientos Exteriores SA.

(5) The other off-balance sheet commitments were mainly:

• €2.1 million in credit letters for Plastic Omnium New Energies France;
• €1.8 million in credit letters for Plastic Omnium New Energies Herentals.

(6) The surety bonds received were mainly related to:

• €9.3 million from Komercni Banka for Plastic Omnium Auto Exteriors S.R.O.

7.3. Related-party transactions

7.3.1. Compensation paid to executives and other corporate officers

Executive corporate officers are, in accordance with IAS 24 "Persons with the authority and responsibility for planning, directing and controlling the activities" of Compagnie Plastic Omnium and its subsidiaries.

Under a free share award plan, the Board of Directors' meeting on February 17, 2022 granted 95,602 shares to the executive corporate officers of Compagnie Plastic Omnium. See Note 5.2.3 "Share-based payments" on the terms of allocation.

The total amount of compensation paid to members of the Board of Directors and executive corporate officers is presented in the table below:

In thousands of euros	Paid or payable by…	2022	2021
Directors' fees	Paid by Compagnie Plastic Omnium	165	145
Directors' fees	Paid by companies controlled by Compagnie Plastic Omnium (excl. Compagnie Plastic Omnium) and by Burelle SA	106	84
Gross compensation	Payable by the Plastic Omnium Group	4,201	3,501
Supplementary pension plans	Payable by the Plastic Omnium Group(1)	601	-
Cost of stock option and share purchase plans and free share plans	Payable by the Plastic Omnium Group Cost to be spread over the vesting period Social contributions related to the new plan of the period (2)	1,070 802 268	650 393 257
Total compensation		6,143	4,380

(1) The Group made no payment in 2021 related to the supplementary pension plan.

(2) These are social contributions over the entire vesting period of each plan rights, i.e. four years. The cost over the period is €62 thousand.

7.3.2. Transactions with joint ventures and associates

7.3.2.1. Transactions presented at 100%

The items presented below relate to transactions before application of the Plastic Omnium group's share.

At December 31, 2022 :

In thousands of euros	Sales	Direct and indirect costs	Royalties and management fees	Trade payables	Other receivables
The joint venture YFPO and its subsidiaries	2,737	-130	-11,620	8,519	517
B.P.O. AS		-2,673		220
EKPO Fuel Cell Technologies	1,670	-193
Total	4,407	-2,996	-11,620	8,739	517

7.3.2.2. Transactions presented at Plastic Omnium Group share

The information presented below is related to transactions at Plastic Omnium group's share.

At December 31, 2022:

In thousands of euros	% of interest	Dividends approved and paid	Dividends approved and payable at closing
The joint venture YFPO and its subsidiaries	49.95%	31,327
B.P.O. AS	49.98%	1,965	979
SHB Automotive Modules (HBPO)	50.00%	4,016
Total		37,308	979

7.3.3. Transactions with Sofiparc SAS, Burelle SA and Burelle Participations SA

At December 31, 2022:

In thousands of euros	Direct and indirect costs	Royalties and manageme nt fees	Proceeds from disposal of property, plant and equipment including investment property	Other Operating income and expenses	Financial income and expenses	Current accounts	Deposits	Trade payables	Trade receivables	Other	receivables Other debtors
Sofiparc SAS	-	-5,979	-	-	8	-	1,180	1,942	6	1,553	-
Burelle SA	-	570	-	-	8	-	-	-	-	67	10
Burelle Participations SA	-	126	-	-	6	-	-	-	4	-	-
Sofiparc Hotels	-	4	-	-	-	-	-	-	4	-	-

At December 31, 2021:

In thousands of euros	Direct and indirect costs	Royalties and manageme nt fees	Proceeds from disposal of property, plant and equipment including investment property	Financial income and expenses	Current	accounts Deposits	Trade payables	Trade receivabl es	Other receivables	Other debtors
Sofiparc SAS	-	-6,311	-	-	-	1,126	1,570	6	1,472	-
Burelle SA	2	565	-	6	-	-	-	289	11	-
Burelle Participations SA	-	120	-	5	-	-	-	-	-	-

7.4. Fees paid to the Statutory Auditors

	2022
In thousands of euros(1)	PwC(1)	EY	Total
Audit services	-2,221	-3,004	-5,225
of which:
Compagnie Plastic Omnium SE	-465	-461	-926
Subsidiaries	-1,756	-2,543	-4,299
Fees other than certification of financial statements(2)	-234 -106
of which:
Compagnie Plastic Omnium SE	-	-10	-10
Subsidiaries	-234	-96	-330
Total	-2,455	-3,110	-5,565

(1) The term of office of the firm Mazars for the certification of the Plastic Omnium Group's financial statements ended with the financial statements as at December 31, 2021 and was entrusted to the firm PricewaterhouseCoopers (PwC) as of January 1, 2022.

(2) The "Fees other than certification of financial statements" are related to the review of the consolidated social, environmental and societal information provided in the management report, tax compliance audit, certificates, agreed procedures and due diligence.

		2021
In thousands of euros	Mazars	EY	Total
Audit services	-2,234	-2,307	-4,541
of which:
Compagnie Plastic Omnium	-436	-436	-872
Subsidiaries	-1,798	-1,871	-3,669
Fees other than certification of financial statements(1)	-175	-552	-727
of which:
Compagnie Plastic Omnium	-159	-36	-195
Subsidiaries	-16	-516	-532
Total	-2,409	-2,859	-5,268

(1) The "Fees other than certification of financial statements" are related to the review of the consolidated social, environmental and societal information provided in the management report, certificates, agreed procedures and due diligence.

7.5. Consolidating entity

Burelle SA holds 60.65% of Compagnie Plastic Omnium SE after the cancellation of the treasury stock (60.01% before cancellation of treasury stock) and fully consolidates Company Plastic Omnium SE.

Burelle SA - 19 Boulevard Jules Carteret 69342 Lyon Cedex 07 - France

7.6. Subsequent events

No event likely to have a material impact on the Group's business, financial position, earnings or assets and liabilities at December 31, 2022 has occurred since the closing date.

LIST OF CONSOLIDATED COMPANIES AT DECEMBER 31, 2022

		Reportable segment				December 31, 2022			December 31, 2021
Legal name		Industries	Modules	Un- allocate d	Method of Consolidation	% control	% interest	Method of Consolidation	% control	% interest	Tax group
France
COMPAGNIE PLASTIC OMNIUM SE				*	Parent company			Parent company			1
PLASTIC OMNIUM GESTION SNC				*	FC	100	100	FC	100	100	1
PLASTIC OMNIUM FINANCE SNC				*	FC	100	100	FC	100	100	1
SIGNALISATION FRANCE SA				*	FC	100	100	FC	100	100	1
INERGY AUTOMOTIVE SYSTEMS FRANCE SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO EXTERIEUR SERVICES SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO EXTERIORS SA		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO INERGY SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO INERGY MANAGEMENT SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO EXTERIEUR SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM COMPOSITES SA		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO INERGY SERVICES SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM AUTO INERGY FRANCE SAS		*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM CLEAN ENERGY SYSTEMS RESEARCH	b2021	*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM NEW ENERGIES FRANCE SAS	a2021	*			FC	100	100	FC	100	100	1
PLASTIC OMNIUM MODULES SAS			*		FC	100	100	FC	100	100	1
PLASTIC OMNIUM MANAGEMENT 4				*	FC	100	100	FC	100	100	1
PO LIGHTING SYSTEMS	b2022			*	FC	100	100	FC	100	100	1
PLASTIC OMNIUM SOFTWARE HOUSE	b2022			*	FC	100	100	FC	100	100	1
PLASTIC OMNIUM E-POWER	a2022_d	*			FC	100	100	-	-	-
PLASTIC OMNIUM E-POWER FRANCE	a2022_d	*			FC	100	100	-	-	-
South Africa
PLASTIC OMNIUM AUTO INERGY SOUTH AFRICA (PROPRIETARY) Ltd YANFENG PLASTIC OMNIUM (SOUTH AFRICA) AUTOMOTIVE EXTERIOR SYSTEMS Co. Ltd	a2022				FC EM_Ifrs	100 49.95	100 49.95	FC -	100 -	100 -
Germany
PLASTIC OMNIUM GmbH				*	FC	100	100	FC	100	100	2
PLASTIC OMNIUM AUTO COMPONENTS GmbH		*			FC	100	100	FC	100	100	2
PLASTIC OMNIUM AUTO INERGY GERMANY GmbH		*			FC	100	100	FC	100	100	2
PLASTIC OMNIUM AUTOMOTIVE EXTERIORS GmbH EKPO FUEL CELL TECHNOLOGIES GMBH	a2021				FC EM_Ifrs	100 40	100 40	FC EM_Ifrs	100 40	100 40	2
HBPO BETEILIGUNGSGESELLSCHAFT GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO RASTATT GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO GERMANY GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO INGOLSTADT GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO REGENSBURG GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO VAIHINGEN Enz GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
HBPO Saarland GmbH	a2022_minos		*		FC	100	100	FC	66.67	66.67	5
PLASTIC OMNIUM E-POWER GERMANY GmbH	a2022_d	*			FC	100	100	-	-	-
PLASTIC OMNIUM LIGHTING SYSTEMS GmbH	a2022_d	*			FC	100	100	-	-	-
PO LIGHTING GERMANY GmbH	a2022_d	*			FC	100	100	-	-	-
Argentina PLASTIC OMNIUM AUTO INERGY ARGENTINA SA		*			FC	100	100	FC	100	100
PLASTIC OMNIUM SA		*			FC	100	100	FC	100	100
Austria
PLASTIC OMNIUM NEW ENERGIES WELS GMBH	a2021	*			FC	100	100	FC	100	100
Belgium
PLASTIC OMNIUM ADVANCED INNOVATION AND RESEARCH NV		*			FC	100	100	FC	100	100	6
PLASTIC OMNIUM AUTO INERGY BELGIUM SA		*			FC	100	100	FC	100	100	6
PLASTIC OMNIUM AUTOMOTIVE BELGIUM		*			FC	100	100	FC	100	100
OPTIMUM CPV BVBA		*			FC	100	100	FC	100	100
PLASTIC OMNIUM NEW ENERGIES SA		*			FC	100	100	FC	100	100
PLASTIC OMNIUM NEW ENERGIES HERENTALS SA	a2021	*			FC	100	100	FC	100	100

Un- Method of % % Method of % % Tax Legal name Industries Modules group allocate Consolidation control interest Consolidation control interest d Brazil PLASTIC OMNIUM AUTO INERGY DO BRASIL LTDA FC 100 100 FC 100 100 PLASTIC OMNIUM DO BRASIL Ltda FC 100 100 FC 100 100 a2022_d PO LIGHTING DO BRASIL Ltda FC 100 100 - - - Canada a2022_minos HBPO CANADA INC. 100 100 66.67 66.67 FC FC China PLASTIC OMNIUM HOLDING (SHANGHAI) Co. Ltd FC 100 100 FC 100 100 WUHAN PLASTIC OMNIUM AUTO INERGY Co. Ltd FC 100 100 FC 100 100 c2021 PLASTIC OMNIUM INERGY (SHANGHAI) CONSULTING Co. Ltd - - - 100 100 FC c2021 INERGY AUTOMOTIVE SYSTEMS CONSULTING (BEIJING) Co. Ltd - - - FC 100 100 BEIJING PLASTIC OMNIUM AUTO INERGY Co. Ltd FC 60 60 FC 60 60 CHONGQING PLASTIC OMNIUM AUTO INERGY Co. Ltd FC 100 100 FC 100 100 GUANGZHOU PLASTIC OMNIUM AUTO INERGY Co. Ltd 100 100 100 100 FC FC NINGBO PLASTIC OMNIUM AUTO INERGY Co. Ltd 100 100 100 100 FC FC SHENYANG PLASTIC OMNIUM AUTO INERGY Co. Ltd FC 100 100 FC 100 100 YANFENG PLASTIC OMNIUM AUTOMOTIVE EXTERIOR SYSTEMS Co. Ltd 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs YANFENG PLASTIC OMNIUM (SHANGHAI TIEXI) AUTOMOTIVE EXTERIOR 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs SYSTEMS Co. Ltd YANFENG PLASTIC OMNIUM YIZHENG AUTOMOTIVE EXTERIOR SYSTEM Co. EM_Ifrs 49.95 49.95 EM_Ifrs 49.95 49.95 Ltd YANFENG PLASTIC OMNIUM (SHENYANG) AUTOMOTIVE EXTERIOR SYSTEMS 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs Co. Ltd YANFENG PLASTIC OMNIUM NINGBO AUTOMOTIVE EXTERIOR SYSTEMS Co. EM_Ifrs 49.95 49.95 EM_Ifrs 49.95 49.95 Ltd YANFENG PLASTIC OMNIUM WUHAN AUTOMOTIVE EXTERIOR SYSTEMS Co. EM_Ifrs 49.95 49.95 EM_Ifrs 49.95 49.95 Ltd YANFENG PLASTIC OMNIUM HARBIN AUTOMOTIVE EXTERIOR SYSTEMS Co. EM_Ifrs 49.95 49.95 EM_Ifrs 49.95 49.95 Ltd YANFENG PLASTIC OMNIUM HANGZHOU AUTO EXTERIOR SYSTEMS Co. Ltd 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs YANFENG PLASTIC OMNIUM NINGDE AUTOMOTIVE EXTERIOR SYSTEMS Co. 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs Ltd YANKANG AUTO PARTS RUGAO Co. Ltd EM_Ifrs 49.95 49.95 EM_Ifrs 49.95 49.95 YANFENG PLASTIC OMNIUM (DAQING) AUTOMOTIVE EXTERIOR SYSTEMS Co. 49.95 49.95 49.95 49.95 EM_Ifrs EM_Ifrs Ltd CHONGQING YANFENG PLASTIC OMNIUM AUTOMOTIVE EXTERIOR FAWAY 49.95 25.47 49.95 25.47 EM_Ifrs EM_Ifrs Co. Ltd GUANGZHOU ZHONGXIN YANFENG PLASTIC OMNIUM AUTOMOTIVE EM_Ifrs 49.95 25.47 EM_Ifrs 49.95 25.47 EXTERIOR TRIM Co. Ltd CHENGDU FAWAY YANFENG PLASTIC OMNIUM Co. Ltd EM 24.48 24.48 EM 24.48 24.48 DONGFENG PLASTIC OMNIUM AUTOMOTIVE EXTERIOR SYSTEMS Co. Ltd EM 24.98 24.98 EM 24.98 24.98 CHANGCHUN HUAZHONG YANFENG PLASTIC OMNIUM AUTOMOTIVE EM_Ifrs 49.95 24.98 EM_Ifrs 49.95 24.98 EXTERIORS Co. Ltd GUANGZHOU ZHONGXIN YANFENG PLASTIC OMNIUM AUTOMOTIVE EM_Ifrs 49.95 25.47 EM_Ifrs 49.95 25.47 EXTERIOR SYSTEMS Co., Ltd a2022_minos HBPO CHINA BEIJING Co. Ltd FC 100 100 FC 66.67 66.67 a2022_minos HBPO Nanjin Co. Ltd 100 100 66.67 66.67 FC FC a2021 HBPO Shanghai Ltd 100 100 66.67 66.67 FC FC YANFENG PLASTIC OMNIUM (LIAONING) AUTOMOTIVE EXTERIOR SYSTEMS a2022 EM_Ifrs 49.95 49.95 - - - Co. Ltd YANFENG PLASTIC OMNIUM (HE FEI) AUTOMOTIVE EXTERIOR SYSTEMS Co. a2022 EM_Ifrs 49.95 49.95 - - - Ltd YANFENG PLASTIC OMNIUM (NEW DADONG) AUTOMOTIVE EXTERIOR a2022 EM_Ifrs 49.95 49.95 - - - SYSTEMS Co. Ltd a2022 HBPO AUTO COMPONENTS (Shanghai) Ltd FC 100 100 - - - a2022_d PLASTIC OMNIUM LIGHTING SYSTEMS (KUNSHAN) Co., Ltd FC 100 100 - - - a2022 SHANGHAI PLASTIC OMNIUM NEW ENERGIES Co., Ltd FC 100 100 - - - a2022 EKPO CHINA EM_Ifrs 40 40 - - - YANFENG PLASTIC OMNIUM (BEIJING) AUTOMOTIVE EXTERIOR SYSTEMS Co. a2022 EM_Ifrs 49.95 49.95 - - - Ltd South Korea PLASTIC OMNIUM Co. Ltd FC 100 100 FC 100 100 PLASTIC OMNIUM KOREA NEW ENERGIES Co. Ltd 100 100 100 100 FC FC a2022_minos SHB AUTOMOTIVE MODULES EM_Ifrs 50 50 33.34 33.34 EM_Ifrs a2022_minos HBPO PYEONGTAEK Ltd * 100 100 66.67 66.67 FC FC		Reportable segment		December 31, 2022			December 31, 2021

		Reportable segment		December 31, 2022			December 31, 2021
Legal name		Industries	Modules	Un- allocate d	Method of Consolidation	% control	% interest	Method of Consolidation	% control	% interest	Tax group
Spain
PLASTIC OMNIUM EQUIPAMIENTOS EXTERIORES SA		*			FC	100	100	FC	100	100	3
PLASTIC OMNIUM AUTO INERGY SPAIN SA		*			FC	100	100	FC	100	100	3
PLASTIC OMNIUM COMPOSITES ESPANA SA	c2022	*			-	-	-	FC	100	100	3
PLASTIC OMNIUM AUTOMOTIVE ESPANA		*			FC	100	100	FC	100	100	3
HBPO AUTOMOTIVE SPAIN SL	a2022_minos		*		FC	100	100	FC	66.67	66.67
United States
PLASTIC OMNIUM Inc.				*	FC	100	100	FC	100	100	4
PLASTIC OMNIUM INDUSTRIES Inc.				*	FC	100	100	FC	100	100	4
PLASTIC OMNIUM AUTO EXTERIORS LLC		*			FC	100	100	FC	100	100	4
PLASTIC OMNIUM AUTO INERGY (USA) LLC		*			FC	100	100	FC	100	100	4
HBPO NORTH AMERICA Inc.	a2022_minos		*		FC	100	100	FC	66.67	66.67
PLASTIC OMNIUM NEW ENERGIES USA, INC	a2022	*			FC	100	100	-	-	-
PLASTIC OMNIUM E-POWER USA	a2022_d	*			FC	100	100	-	-	-
PLASTIC OMNIUM LIGHTING SYSTEMS Inc	a2022_d	*			FC	100	100	-	-	-
PO LIGHTING USA Inc.	a2022_d	*			FC	100	100	-	-	-
Hungary
HBPO MANUFACTURING HUNGARY Kft	a2022_minos		*		FC	100	100	FC	66.67	66.67	7
HBPO AUTOMOTIVE HUNGARIA Kft	a2022_minos		*		FC	100	100	FC	66.67	66.67
HBPO SZEKESFEHERVAR Kft	a2022_minos		*		FC	100	100	FC	66.67	66.67	7
HBPO PROFESSIONAL SERVICES Kft	a2022		*		FC	100	100	-	-	-
PLASTIC OMNIUM AUTO EXTERIORS HUNGARY Kft	a2022	*			FC	100	100	-	-	-
India
PLASTIC OMNIUM AUTO EXTERIORS (INDIA) PVT Ltd		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY INDIA PVT Ltd		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY MANUFACTURING INDIA PVT Ltd		*			FC	55	55	FC	55	55
PO LIGHTING INDIA PVT. Ltd	a2022_d	*			FC	100	100	-	-	-
Indonesia
PT PLASTIC OMNIUM INDONESIA	a2021	*			FC	100	100	FC	100	100
Japan
PLASTIC OMNIUM KK		*			FC	100	100	FC	100	100
Malaysia
HICOM HBPO SDN BHD	a2022_minos		*		FC	51	51	FC	51	34
PO AUTOMOTIVE SDN BHD MALAYSIA		*			FC	100	100	FC	100	100
Morocco
PLASTIC OMNIUM AUTO INERGY (MOROCCO) SARL		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO EXTERIEUR		*			FC	100	100	FC	100	100
PO LIGHTING MOROCCO SA	a2022_d	*			FC	100	100	-	-	-
Mexico
PLASTIC OMNIUM INDUSTRIAL AUTO EXTERIORES RAMOS ARIZPE SA DE CV		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY MEXICO SA DE CV		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO EXTERIORES SA DE CV		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INDUSTRIAL SRL DE CV		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY INDUSTRIAL SA DE CV		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY SERVICIOS SA DE CV		*			FC	100	100	FC	100	100
HBPO MEXICO SA DE CV	a2022_minos		*		FC	100	100	FC	66.67	66.67
HBPO SERVICES MEXICO SA DE CV	c2021		*		-	-	-	FC	66.67	66.67
HBPO MANAGEMENT SERVICES MEXICO SA DE CV	c2021		*		-	-	-	FC	66.67	66.67
PO LIGHTING MEXICO SA DE CV	a2022_d	*			FC	100	100	-	-	-

			Reportable segment		December 31, 2022			December 31, 2021
Legal name		Industries	Modules	Un- allocate d	Method of Consolidation	% control	% interest	Method of Consolidation	% control	% interest	Tax group
Netherlands
DSK PLASTIC OMNIUM BV		*			FC	51	51	FC	51	51
PLASTIC OMNIUM AUTO INERGY NETHERLANDS HOLDING BV		*			FC	100	100	FC	100	100
Poland
PLASTIC OMNIUM AUTO INERGY POLAND Sp Z.O.O		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO EXTERIORS Sp Z.O.O		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO Sp Z.O.O		*			FC	100	100	FC	100	100
PO LIGHTING POLAND Sp Z.O.O	a2022_d	*			FC	100	100	-	-	-
Czech Republic
HBPO CZECH S.R.O.	a2022_minos		*		FC	100	100	FC	66.67	66.67
PO LIGHTING CZECH S.R.O	a2022_d	*			FC	100	100	-	-	-
HBPO KVASINY S.R.O	a2022		*		FC	100	100	-	-	-
Romania
PLASTIC OMNIUM AUTO INERGY ROMANIA SRL		*			FC	100	100	FC	100	100
PLASTIC OMNIUM LIGHTING SYSTEMS SRL	a2022	*			FC	100	100	-	-	-
United Kingdom
PLASTIC OMNIUM AUTOMOTIVE Ltd		*			FC	100	100	FC	100	100
HBPO UK Ltd	a2022_minos		*		FC	100	100	FC	66.67	66.67
Russia
PLASTIC OMNIUM AUTO INERGY RUSSIA LLC		*			FC	100	100	FC	100	100
DSK PLASTIC OMNIUM INERGY		*			FC	51	51	FC	51	51
Slovakia
PLASTIC OMNIUM AUTO EXTERIORS S.R.O.		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTO INERGY SLOVAKIA S.R.O.		*			FC	100	100	FC	100	100
HBPO SLOVAKIA S.R.O.	a2022_minos		*		FC	100	100	FC	66.67	66.67
Switzerland
PLASTIC OMNIUM RE AG				*	FC	100	100	FC	100	100
SWISS HYDROGEN		*			FC	100	100	FC	100	100
Thailand
PLASTIC OMNIUM AUTO INERGY THAILAND Co. Ltd		*			FC	100	100	FC	100	100
PLASTIC OMNIUM AUTOMOTIVE Co. Ltd		*			FC	100	100	FC	100	100
Turkey
B.P.O. AS		*			EM_Ifrs	50	49.98	EM_Ifrs	50	49.98
PO LIGHTING TURKEY AS	a2022_d	*			FC	100	100	-	-	-

Consolidation method and special features:
FC:	Full consolidation
EM:	Companies that were already consolidated by the equity method before the application of the new consolidation standards at January 1, 2014.
EM_Ifrs: Companies consolidated by the equity method since the application of the new consolidation standards at January 1, 2014
Movements for the period:
a2022:	Companies acquired and/or created during fiscal year 2022
a2022_d:	Companies acquired during fiscal year 2022 whose name was changed by the Group since the acquisition
	AMLS Osram: entities integrated in the Plastic Omnium Group at July 1, 2022
	"AMLS Osram GmbH" became "Plastic Omnium Lighting Systems GmbH"
	"AMLS Osram US" became "Plastic Omnium Lighting Systems Inc"
	"AMLS Osram China" became "Plastic Omnium Lighting Systems (Kunshan) Co., Ltd"
	Actia Power: entities integrated in the Plastic Omnium Group at August 1, 2022
	"Actia Power Holding" became "Plastic Omnium e-Power"
	"Actia Power France" became "Plastic Omnium e-Power France"
	"Actia Power Germany" became "Plastic Omnium e-Power Germany GmbH"
	"Actia Power US" became "Plastic Omnium e-Power USA"
	VLS – Varroc Lighting Systems : entities integrated in the Plastic Omnium Group at October 6, 2022
	"Varroc Lighting Systems SA Morocco" became "PO Lighting Morocco SA"
	"Varroc Lighting Systems CZ" became "PO Lighting Czech S.R.O"
	"Varroc Lighting Systems Poland" became "PO Lighting Poland Sp Z.O.O"
	"Varroc Lighting Systems Turkey" became "PO Lighting Turkey AS"
	"Varroc Lighting Systems Mexico" became "PO Lighting Mexico SA de CV"
	"Varroc do Brazil" became "PO Lighting do Brasil Ltda"
	"Varroc India SPV" became "PO Lighting India Pvt. Ltd"
	"Varroc Lighting Systems USA" became "PO Lighting USA Inc."
	"Varroc Lighting Systems Germany GmbH" became "PO Lighting Germany GmbH"
a2022_minos :	Acquisition by the Group on December 12, 2022 of the final third of HBPO held by Hella
b2022	Companies whose name was changed during fiscal year 2022
a2021:	Companies acquired and/or created during fiscal year 2021

• b2021 Companies whose name was changed during fiscal year 2021
• c2021: Companies sold and/or merged during fiscal year 2021

Tax group

1	France Plastic Omnium tax group
2	Germany Plastic Omnium GmbH tax group
3	Spain Plastic Omnium tax group
4	United States Plastic Omnium tax group
5	Germany HBPO tax group
6	Belgium Plastic Omnium tax group
7	Hungary HBPO tax group