NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

The exchange rates for the main Group’s main currencies are as follows:

31 January 2019

31 January 2018

Period end

Average

Period end

Average

United States dollar (USD)

1.1488

1.1750

1.2457

1.1424

Pound sterling (GBP)

0.8758

0.8850

0.8791

0.8779

Canadian dollar (CAD)

1.5109

1.5305

1.5290

1.4737

Swiss franc (CHF)

1.1409

1.1514

1.1631

1.1199

Japanese yen (JPY)

124.8100

129.5042

135.6000

127.7400

Norwegian krone (NOK)

9.6623

9.6103

9.5620

9.3820

Swedish krone (SEK)

10.3730

10.2941

9.7645

9.6624

Danish krone (DKK)

7.4657

7.4549

7.4419

7.4395

Australian dollar (AUD)

1.5787

1.5853

1.5357

1.4819

Singapore dollar (SGD)

1.5459

1.5875

1.6288

1.5661

Indian rupee (INR)

81.6860

80.9892

79.1800

73.9458

Brazilian real (BRL)

4.2041

4.3383

3.9368

3.6478

Chinese yuan (CNY)

7.7010

7.7999

7.8340

7.6699

Czech koruna (CZK)

25.7600

25.6602

25.2720

26.1964

Hungarian florin (HUF)

315.8800

319.7147

310.6500

309.2960

Polish zloty (PLN)

4.2736

4.2714

4.1503

4.2393

New-Zealand dollar (NZD)

1.6607

1.7062

1.6803

1.6052

Note 3

Scope and principles of consolidation

Accounting policies relating to the scope of consolidation The Group’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the country of operation. Financial statements of foreign companies have been restated to be compliant with Neopost group’s accounting principles. The consolidated balance sheet incorporates all items of assets and liabilities along with the results of consolidated companies. Intra-Group transactions and profits relating to these operations as well as intra-Group capital gains are eliminated. Subsidiaries controlled directly by the parent company or indirectly through other subsidiaries are consolidated using the full consolidation method. Stakes in associated companies over which the investor exerts significant influence are consolidated using the equity method. Significant influence is assumed when the investor controls directly or indirectly through subsidiaries 20% or more of the voting rights in the company in question. of consolidation The consolidated financial statements include the financial statements of Neopost S.A. and its subsidiaries. Unless otherwise stated, the subsidiaries are consolidated as from the date on which control is acquired by the Group and until the date on which control is transferred outside the Group. Control is the power to direct a company’s financial and operational policies in order to derive profit from its activities. 3-1: Changes in the scope 3-2:

Main changes in the scope of consolidation for the 2018 financial year are the following: The company Neopost Finans AB was merged in the • company Neopost Sverige AB; The company Neopost Digital Solutions USA was merged in • the company Neopost USA Inc.; The company Mailroom Holding Inc. acquired 100% of the • company Parcel Pending Inc. on 22 January 2019, fully consolidated since 31 January 2019; The company Mailroom Holding Inc. sold its 100% stake in • the company Quadient Data USA Inc. on 28 January 2019. Information on related parties Neopost owns a 35% stake in Docapost BPO IS and a 24% stake in AMS Investissement. The transactions with these companies, consolidated using the equity method, are not significant. Neopost also holds a 7.80% stake in X’Ange 2 and a 6.22% stake in Partech Entrepreneur II, all non-consolidated companies. The transactions with these companies are not significant. Other information relating to the scope of consolidation 3-3:

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REGISTRATION DOCUMENT 2018 / NEOPOST