Plastic Omnium - 2018 Registration Document

4 2018 CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements at December 31, 2018 PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 167 Cost of sales, development, selling and administrative costs 4.2 In thousands of euros 2018 2017 restated Cost of sales includes: Raw materials (purchases and changes in inventory) (1) (4,895,917) (4,095,985) Direct production outsourcing (11,515) (10,905) Utilities and fluids (96,865) (97,542) Employee benefits expense (669,484) (659,528) Other production costs (363,853) (402,102) Depreciation (174,544) (155,742) Provisions for liabilities and charges 27,721 15,917 TOTAL (6,184,457) (5,405,888) Research and Development costs include: Salaries, expenses and employee benefits expense (208,303) (187,608) Depreciation, amortization and provisions (117,802) (103,595) Other 121,786 123,242 TOTAL (204,319) (167,961) Selling costs include: Salaries, expenses and employee benefits expense (2) (27,034) (28,239) Depreciation, amortization and provisions (638) (100) Other (9,761) (12,537) TOTAL (37,433) (40,876) Administrative costs include: Salaries, expenses and employee benefits expense (2) (142,958) (140,590) Other administrative expenses (86,642) (94,581) Depreciation (12,018) (10,302) Provisions for liabilities and charges (143) 453 TOTAL (241,761) (245,020) Including charges, reversals and provisions for impairment on inventories amounting to: (1) • - €4,708 thousand in 2018; • - €1,283 thousand in 2017. See, in “Significant events of the period”, Note 2.5.1 on the implementation of the Competitiveness and Employment Tax Credit-CICE for French entities in the (2) Consolidated Financial Statements at December 31, 2017.