NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

Note 7

Segment information

activities in digital communications, shipping solutions and graphics.

Neopost’s activity is divided into three divisions:

Enterprise Digital Solutions which offers digital • communications solutions; Neopost Shipping which develops a complete range of • products and solutions that optimize processes for supply-chain and e-commerce players; SME Solutions which encompasses the legacy business • of the Group related to mail solutions as well as the new

These activities generate different levels of sales and operating margin. Furthermore, in 2018, Neopost includes in the segment Innovation the new projects to develop mobile and cloud applications. In 2017, Neopost included in the segment innovation the costs of developing web-based platform and SaaS applications for small businesses.

Neopost’s income breaks down by division as follows:

Enterprise Digital Solutions

Neopost Shipping

SME Solutions Eliminations Innovation

31 January 2019

Total sales

146.9

65.6

904.7

(25.3)

-

1,091.9

Segment income

29.9

(20.9)

194.7

-

(4.4)

199.3

in percentage

20.3% (31.9)% 21.5%

-

n/a

18.2%

Expenses related to acquisitions

(17.2)

Current operating income

182.1

Structure optimization expenses

(13.1)

Proceeds from net assets sales

6.2

Other operational expenses and income

(17.7)

Operating income

157.5

Financial result

(30.5)

Share of results of associated companies

1.4

Income taxes

(36.8)

NET INCOME

91.6

Enterprise Digital Solutions

Neopost Shipping

SME Solutions Eliminations Innovation

31 January 2018

Total sales

135.9

57.2

941.6

(23.0)

-

1,111.7

Segment income

15.7

(12.5)

206.6

-

(7.5)

202.3

in percentage

11.6% (21.8)% 21.9%

-

n/a

18.2%

Expenses related to acquisitions

(11.3)

Current operating income

191.0

Structure optimization expenses

(13.2)

Proceeds from net assets sales

(0.1)

Other operational expenses and income

(11.3)

Operating income

166.4

Financial result

(34.6)

Share of results of associated companies

1.7

Income taxes

(0.8)

NET INCOME

132.7

141

REGISTRATION DOCUMENT 2018 / NEOPOST