BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 4

OPERATING EXPENSES

Accounting policies Government grants are recognized systematically in profit or loss over the periods necessary to match them with the associated ● costs and presented as a reduction to the related expenses. The Group recognizes the research and development tax credit as a deduction from operating expenses and the French tax credit ● for competitiveness and employment as a deduction from labor costs. Research expenses are recognized as expenses in the period in which they are incurred. ●

December 31, 2019

December 31, 2018

(in thousand euros)

Raw materials, consumables used and change in inventory

509,277

514,017

Staff costs

505,683

 498,901

Depreciation and amortization expenses

108,958

 117,650

Other operating expenses

489,451

 475,695

Impairment loss on manufacturing equipment

1,501

(172)

Profit / (loss) on operational foreign currency translation

(14,923)

 13,813

TOTAL

1,599,947

1,619,904

Other income and expenses are not included in the total amount and are disclosed in Note 5. Other operating expenses mainly include outside services. Research and development costs recognized under other operating expenses for 2019 amounted to 35.2 million euros, versus 35.3 million euros for 2018.

They include the French research tax credit for 1.4 million euros, stable compared to 2018. Following its elimination, the company did not receive a tax credit for competitiveness and employment (CICE) in 2019, compared to 2.1 million euros in 2018.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •