[2-3] Cost of sales

[2] Materials and subcontracted work

These include Euro 800,584 thousand (827,780 thousand in 2008) in costs incurred, net of closing inventories, for the purchase of raw materials, semi-finished products, finished products, outsourced products and related materials and Euro 168,698 thousand (169,455 thousand in 2008) in costs for subcontracted work. Despite the negative impact of exchange rates (around Euro 10.8 million), the figure for 2009 reports a significant reduction on the prior year thanks to actions taken under the reorganization plan in terms of production sources and efficiency in the supply chain, which add to the benefits of actions already taken such as the reduction in collection complexity.

[3] Other manufacturing costs

Other manufacturing costs amount to Euro 37,476 thousand compared with Euro 44,554 thousand in 2008 and reflect the decrease in energy and industrial maintenance costs, particularly in the textile segment.

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