In thousands of euros 2012 + – 2013
Patents, trademarks and licenses 8,818 8,818
Total, gross 8,818 8,818
Accumulated amortization 884 7 891
Total, net 7,934 (7) 7,927
B – Property, plant and equipment
In thousands of euros 2012 + – 2013
Land 1,541 862 116 2,287
Buildings 3,520 2,134 862 4,792
Fixtures and fi ttings 2,594 415 2,179
Offi ce equipment and furniture 84 104 188
Property, plant and equipment in progress 2,774 16,334 2,231 16,877
Prepayments to suppliers of non-current assets 10,000 10,000
Total, gross 10,513 29,434 3,624 36,323
Accumulated amortization 3,335 306 415 3,226
Total, net 7,178 29,128 3,209 33,097
The increase in property, plant and equipment in progress at December 31, 2013, refl ects the ongoing construction of an offi ce building complex in Lyon, expected to be completed in early 2015.
A €10 million advance was paid to the construction company responsible for the project.
The change in buildings refl ects renovation work on the Nanterre building, used by the Group for its own operations since January 1, 2013.
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COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS
C –bInvestments
In thousands of euros 2012 + – 2013
Shares in subsidiaries and affi liates 734,164 137,995 39,826 832,333
Other long-term investments 2,458 36,037 23,716 14,779
Loans 129 17,056 17,185
Total, gross 736,751 191,088 63,542 864,297
Provisions for impairment 19,296 704 1,302 18,698
Total, net 717,455 190,384 62,240 845,599
The increase in shares in subsidiaries and affi liates is mainly due to the TUP (Transmission Universelle de Patrimoine – universal transfer of assets and liabilities) of Plastic Omnium Auto SAS to Compagnie Plastic Omnium. The resulting addition to the Company’s assets included
€127,592 thousand of shares in the following companies:
• Plastic Omnium Auto Exteriors SAS;
• Plastic Omnium Inc, the holding company for Plastic Omnium Group’s US subsidiaries;
• Inergy Automotive Systems SAS, the holding company for most of the “fuel systems” subsidiaries.
Following these transactions, Compagnie Plastic Omnium now owns 100% of both these holding companies.
Other increases in shares in subsidiaries and affi liates in 2013 mainly comprised the €10 million capitalization of Plastic Omnium Holding (Shanghai) Co Ltd, which remains wholly owned.
The main reductions resulted from the Plastic Omnium Auto TUP and liquidation of the subsidiary Transit.
At December 31, 2013, impairment provisions for shares in subsidiaries and affi liates totaled €17,993 thousand, versus €19,296 thousand at December 31, 2012. This change mainly refl ected the reversal of the provision taken against Transit shares following its liquidation.
Other long-term investments include 656,712 treasury shares. Of these 612,081, carried at €11,666 thousand, are classifi ed for M&A and 44,631, carried at €885 thousand, relate to the liquidity contract.
The change in loans relates to €17 million raised for Chinese subsidia-ries, maturing 2018. All loans are made to related companies.
D –bReceivables
In thousands of euros 2013 Maturity
–b1byear Related companies
Prepayments to suppliers 18 18
Trade receivables(1) 2,399 2,399 2,399
Tax receivables(2) 20,602 20,602
Short-term loans 587,704 587,704 587,704
Other receivables 12,240 4,505 4,505
Total, net 622,963 615,229 594,608
(1) Of which €1,869 thousand in accrued income (including €1,356 thousand in royalties on trademarks, €331 thousand in patent protection costs and €182,000 in re-invoiced costs).
(2) Of which €17,801 thousand in research tax credits and €1,245 thousand in recoverable VAT.
Short-term loans relate to current accounts made available to Group companies under fi nancing arrangements for subsidiaries.
Other receivables represent:
• An additional payment of €7,734 thousand following the disposal of the 3P – Performance Plastic Products business, due in 2015, callable early if the buyer loses control or sells the business;
• Tax current accounts totaling €4,470 thousand owed by various companies belonging to the tax group headed by Compagnie Plastic Omnium.
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PLASTIC OMNIUM 2013 FINANCIAL REPORT COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS
E –bCash and cash equivalents
In thousands of euros 2012 + – 2013
Short-term investment securities 28,248 12,296 8,747 31,797
Other short-term investment securities 270,455 270,455
Cash and cash equivalents 1,492 776 716
Total, gross 29,740 282,751 9,523 302,968
Impairment provisions 0 0
Total, net 29,740 282,751 9,523 302,968
“Short-term investment securities” includes 7,871,450 treasury shares allocated to various stock option plans or intended to cover future plans but not yet allocated. These two categories are valued at €31,627 thousand and €170 thousand, respectively.
At December 31, 2013, Compagnie Plastic Omnium held the following treasury shares:
• 133,650 shares allocated to the stock option plan set up by the Board of Directors on July 24, 2007, acting on authorization granted at the Extraordinary Shareholders’ Meeting of April 24, 2007.
• 917,300 shares allocated to the stock option plan set up by the Board of Directors on July 22, 2008, acting on authorization granted at the Extraordinary Shareholders’ Meeting of April 24, 2008.
• 3 028 500 shares allocated to the stock option plan set up by the Board of Directors on March 16, 2010, acting on authorization granted at the Extraordinary Shareholders’ Meeting of April 28, 2009.
• 2,479,500 shares allocated to the stock option plan set up by the Board of Directors on March 6, 2012, acting on authorization granted at the Extraordinary Shareholders’ Meeting of April 28, 2011.
• 1,272,000 shares allocated to the stock option plan set up by the Board of Directors on July 23, 2013, acting on authorization granted at the Extraordinary Shareholders’ Meeting of April 25, 2013.
• 40,500 shares held to cover future plans but not yet allocated.
“Other short-term investment securities” includes €270 million of money market funds.
F – Prepaid expenses and accrued income
In thousands of euros 2013 2012
Prepaid expenses 568 176
Deferred charges (debt issuance costs) 3,932 1,556
Bond redemption premiums 5,007 1,662
Translation loss on FX payables and receivables 1,302 3,853
Total, net 10,809 7,247
Issuance costs and the redemption premium on the Euro Bond are spread over the life of the bond using the compound interest method.
They have been added to the issuance costs and redemption premium of the EuroPP private placement raised in 2012.
Prepaid expenses mainly consist of commitment and other fees on unused credit lines.
G – Share capital
Share capital was €9,298,621 at December 31, 2013, represented by 154,977,021 shares with a par value of €0.06 each.
The three-for-one stock split, approved by the Board of Directors on July 23, 2013, following authorization at the Extraordinary Shareholders’
Meeting of April 25, 2013, took effect on September 10, 2013, and involved a €517 thousand capitalization of reserves.
H – Additional paid-in capital
Additional paid-in capital was €65,913 thousand at December 31, 2013, unchanged on the year.
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COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS
I – Retained earnings and other reserves
In thousands of euros 2012 + – 2013
Revaluation reserve 245 245
Legal reserve 1,465 1,465
Other reserves 41,683 517 41,166
Retained earnings 418,150 215,311 633,461
Total 461,543 215,311 517 676,337
The €215,311 thousand increase in retained earnings results from the appropriation of 2012 net income. The reduction in other reserves funded the capital increase resulting from the stock split described above (G).
J –bProvisions In thousands of euros
Tax-regulated provisions 2012 + – 2013
Excess tax depreciation 583 8 74 517
Total 583 8 74 517
Provisions for contingencies and charges 2012 + Utilized Surplus 2013
Provisions for foreign exchange losses 3,853 893 3,853 893
Provisions for other contingencies 124 596 720
Provisions for taxes (see Note Q) 20,978 2,772 23,750
Total 24,955 4,261 3,853 25,363
K – Liabilities
In thousands of euros 2013 Maturity
– 1 year
Related companies
2012 Maturity – 1 year
Related companies
Bonds(1) 759,011 9,011 252,123 2,123
Bank borrowings(2) 22,054 671 178,741 13,109
Other borrowings 207 19 17 74,968 74,968 17
Trade payables(3) 13,059 13,059 1,445 4,912 4,912 948
Accrued taxes and payroll costs 1,315 1,315 1,665 1,665
Other liabilities 24,579 24,579 24,122 17,402 17,402 17,402
Total 820,225 48,654 25,584 529,811 114,178 18,367
(1) €500 million Euro Bond issued 2013, €250 million Euro PP and €9 million of accrued interest.
(2) Includes a CNY140 million (€17 million) foreign currency loan and €5 million of medium-term loans.
(3) Includes €3,850 thousand of accrued expenses, mainly €2,819 thousand of professional fees and €867 thousand of trademark royalties. The increase in trade payables is due to the ongoing construction of the Lyon offi ce complex.
Bond issue
The key features of bonds issued are as follows:
Bond issue of May 21, 2013
Bond issue Euro Bond
Amount in euros 500,000,000
Maturity May 29, 2020
Annual coupon – Fixed rate 2.875%
Listed Euronext Paris
Bond issue of October 4, 2012
Private bond placement Euro PP
Amount ineuros 250,000,000
Maturity December 12, 2018
Annual coupon – Fixed rate 3.875%
Listed Euronext Paris
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PLASTIC OMNIUM 2013 FINANCIAL REPORT COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS