NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

6-5:

Inventories and work in progress

6-5-1:

Accounting principles

Inventories and work in progress are measured at the lower of the cost or replacement value (for purchased goods) or the cost of full production (for produced goods) which must not exceed the net realizable value. Production cost is calculated using the weighted average cost method.

Depreciation is calculated on the basis of inventory turnover and the obsolescence of equipment and goods. The intra-Group margin generated by industrial subsidiaries on equipment sold to the distribution subsidiaries that stock this equipment is eliminated.

6-5-2:

Inventories by categories

31 January 2019

31 January 2018

Gross value Depreciation

Net

Gross value Depreciation

Net

Work in progress

5.2

(0.7)

4.5

4.6

(0.7)

3.9

Raw materials

12.4

(1.9)

10.5

10.5

(1.9)

8.6

Finished goods

63.0

(9.6)

53.4

59.9

(9.8)

50.1

Spare parts

4.8

(2.0)

2.8

4.8

(1.8)

3.0

TOTAL

85.4

(14.2)

71.2

79.8

(14.2)

65.6

6-5-3:

Changes in inventories

31 January 2019

Gross value

Depreciation

Opening

79.8

(14.2)

Net inventory entries

1.5

-

Charges

-

(1.9)

Disposals

-

1.9

Scope variation

3.8

0.0

Translation difference

0.3

(0.0)

TOTAL

85.4

(14.2)

6-6:

Expenses and gains related to acquisitions

Transaction costs related to acquisitions are recorded under current operating expenses and presented on a separated line entitled “Expenses related to acquisitions”.

This line includes advisor fees and amortization of intangible assets recognized after purchase price allocation.

31 January 2019

31 January 2018

Acquisition fees

7.0

0.2

Amortization of intangible assets after purchase price allocation

10.2

11.1

EXPENSES RELATED TO ACQUISITIONS

17.2

11.3

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REGISTRATION DOCUMENT 2018 / NEOPOST