NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

Structure optimization expenses - net of reversals 6-7: The Group pursued the optimization of its structure. An is mainly related to the costs incurred by the implementation expense of 13.1 million euros, net of an unused provision of some actions related to reorganizations within the Group reversal of 0.5 million euros, is recorded in this regard in and to expenses related to staff reduction. 2018, compared with 13.2 million euros in 2017. This expense

Disposals of assets 6-8: Revenues from the disposals of assets amount to 6.2million by the release of the net book value of tangible assets as part euros and they are mainly related to the disposal of a building of relocations. in Clichy (France) for approximately 8.0million euros, offsett

6-9:

Other operational expenses and income

31 January 2019

31 January 2018

Capital gain on the sale of Quadient Data USA

39.4

-

Assets held for sale depreciation

(6.6)

-

Fixed assets depreciation

(24.9)

(5.7)

Net impact of divestments

-

(11.3)

Impairment of goodwill

(19.8)

(22.9)

Earn-out reversal

-

28.6

Other

(5.8)

-

OTHER OPERATIONAL (EXPENSES) INCOME

(17.7)

(11.3)

In 2018, the sale of the subsidiary Quadient Data USA (former Satori Software) lead to a capital gain of 39.4 million euros. The disclosure of Quadient Data Netherlands (former Human Inference) sale which ocurred at the beginning of February 2019 in compliance with IFRS 5 leads to an expense of 6.6million euros (see note 5). Fixed assets depreciations are recorded for 24.9million euros. They are related to the overhaul of different projects, out of which the most significant was the roll-out of common IT tools in Europe. The line other includes in particular an exceptional depreciation of irrecoverable assets related to the leasing activity. In 2018 and 2017, goodwill depreciation is related to Temando and detailed in the note 4–5-2.

In 2017, on the basis of Temando’s revised business plan, the financial indicators that would have triggered the earn-out payment were not reached. The earn-out debt was thus reversed for 28.6 million euros. Still in 2017, an exceptional depreciation was recorded for an amount of 5.7 million euros, related to the abandonment of of a project of implementation of a web platform for small and medium enterprises. In 2017, the subsidiaries from the SME Solutions division in Indonesia, Malaysia, Singapore and Thailand and DMTI Spatial (from the EDS division) were sold. These divestments led to an expense of 11.3 million euros.

6-10:

Off-balance sheet commitments related to operational data

Currency

31 January 2019

31 January 2018

Bank guarantee in favor of the British postal service

GBP

0.8

0.8

Bank guarantee in favor of the Irish postal service

EUR

1.7

1.7

As at 31 January 2019, the commitments on future minimum payments on real estate leases amount to 91.4 million euro of which 17.5 million euros with a maturity of less than one year, 50.0 million euros between one and five years and 23.9 million euros of more than five years.

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REGISTRATION DOCUMENT 2018 / NEOPOST