Group Financial Statements CONSOLIDATED INCOME STATEMENT in CHF million Note 2018 2017 Restated* Net sales 29 5,659.3 5,112.6 Other operating income 29 134.9 114.9 Total operating income 5,794.2 5,227.5 Change in inventory 30 56.7 50.5 Material costs 30 (1,648.9) (1,484.1) Personnel expenses 31 (2,340.5) (2,109.9) Depreciation and amortization 32 (202.4) (173.5) Losses on trade and other receivables (44.8) (36.0) Other operating expenses 33 (885.9) (793.9) Total operating expenses (5,065.8) (4,546.9) Operating result 728.4 680.6 Other income and expenses (net) 34 (29.7) (9.3) Finance costs 35 (31.1) (27.6) Net income before income tax expense 667.6 643.7 Income tax expense 36 (121.2) (123.1) Net income 546.4 520.6 Attributable to: Equity holders of the parent 545.0 519.3 Non-controlling interests 1.4 1.3 * See note 2.2 The notes are an integral part of these Group financial statements. 2018 Financial Report | 12