BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

At the closing date, non-monetary assets and liabilities are restated using the general price index IPIM (Internal Wholesale Price Index).

Income statement items are restated by applying the change in this general price index from the initial recognition of income and expense items in the 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. Research expenses are recognized as expenses in the period in which they are incurred. ●

December 31, 2020

December 31, 2019

(in thousand euros)

Raw materials, consumables used and change in inventory

514,017

449,852

Staff costs

498,901

465,499

Depreciation and amortization expenses

117,650

115,144

Other operating expenses

475,695

412,284

Impairment loss on manufacturing equipment

(172)

(40)

Profit/(loss) on operational foreign currency translation

13,813

(2,917)

TOTAL

1,619,904

1,439,822

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 the year 2020 amounted to 24.2 million euros, versus 35.2 million euros in 2019. They include the French research tax credit for 1.5 million euros, versus 1.4 million euros in 2019.

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• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •