IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 Remunerations and other personnel costs Personnel costs increased 69.2%, slightly above the 66.2% increase in busi- ness, representing 30.2% of turnover (2016:29.6%). Without Eat Out Group, this increase was 15.6%, in line with the activity in- crease of 15.9%, which allowed to guarantee in 2017 the same weight of per- sonal costs in 29.0% of turnover. Sales increase, the dilution of structure costs and VAT gains, compensated the effect of the increase in theminimum wage in Portugal and training costs incurred for the new units opening. External supplies and services The cost of external supplies and services amounted to 149.5 million euros, versus 83.9million euros in 2016, an increase of 78,2%. The weight of this item increased from 31.1% to 33.3% of turnover. For this increase, it should be noted that, with Eat Out Group the increase of activity in concessions, characterized by higher rents. Without EOG, increase of 14.6%, representing 29.9%of turnover, slightly low- er than in the previous year (2016:30.2%). Other operating costs Other operating costs stood at 5.2 million euros and include nearly 1.4 million euros corresponding to taxes. Without Eat Out Group the Other operating costs would stood at 3.2 million euros similar to the value of 2016. Depreciations and impairment losses Depreciations and impairment losses during the financial year were 31.9mil- lion euros corresponding to 7.1% of turnover. Fourth-quarter depreciations influenced by the accounting effect of 1.6 mil- 109