NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

Breakdown of goodwill by cash-generating unit 4-1-3: Net value of goodwill is broken down as follows by cash-generating unit (CGU):

31 January 2019

31 January 2018

United States

344.1 167.4 124.3

325.3 167.4 124.1

France

United Kingdom

Germany

66.6 28.3 27.9 25.4 16.0 13.8

66.6 29.2 28.3 25.1 16.0 14.4

Australia & Asia

Netherlands & Belgium

Switzerland

Denmark Sweden

Norway

6.9 6.6 5.5 2.4 2.3

7.1 6.6 5.5 2.4 2.3

Italy

Ireland Canada Finland

SME Solutions

837.5 171.1

820.3 200.9

Enterprise Digital Solutions

Neopost Shipping Parcel Pending

21.6 97.1

20.5

-

Temando

-

19.8

TOTAL NET GOODWILL

1,127.3

1,061.5

The sale of Quadient Data USA and the classification of Quadient Data Netherlands goodwill as asset held for sale are part of the Enterprise Digital Solutions CGU. The goodwill's share allocated to these companies amouts to 31.4 million euros, valuated following the relative value method. This value has been determined by aggregating the fair value of the sold or reclassified activities (sale price less disposal costs) and the maintained CGU value in use,

valuated using the discounted cash flow method. The goodwill recognized on Parcel Pending acquisition is provisional (111.6million United States dollars), an exercise of purchase price allocation will be performed within twelve months after the acquisition date. The recoverable value of Parcel Pending goodwill

is supported by the recent purchase of the company.

4-2:

Intangible assets Accounting principles

4-2-1:

the technical feasibility of the project has been • demonstrated; there is a proven intention to complete the project and • use or sell the products developed under it; the necessary resources for completing the project are • available; the existence of a potential market for the production • arising from this project or its internal usefulness has been demonstrated. Such development expenses are amortized over a period of four to ten years, reflecting the average useful life of marketed products. Other intangible fixed assets Other intangible fixed assets are amortized on a straight-line basis over a period representing the best estimate of the assets’ useful life.

Intangible fixed assets acquired separately are recognized at acquisition cost. Intangible fixed assets acquired as part of a business combination are recognized at fair value on their acquisition date, separately from goodwill if they meet the two following conditions: they are identifiable, i.e. they result from legal or • contractual rights; they are separable from the acquired entity. • Intangible fixed assets include software, patents, lease rights and activated development expenses. Development expenses In accordance with IAS 38, development expenses meeting the following conditions are recognized as intangible fixed assets: the project is clearly identified and the costs relating to • it are individually identified and reliably monitored;

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REGISTRATION DOCUMENT 2018 / NEOPOST