NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

Note 8

Cash flow details

Cash flows correspond to consolidated balance sheet items. However, these flows may differ from balance sheet variations particularly because of translation of operations in foreign Expenses (income) with no cash effect 8-1:

currencies, translation of subsidiaries’ financial statements denominated in foreign currencies and scope variations.

31 January 2019

31 January 2018

Amortization of fixed assets

90.3

93.7

Provisions (reversals)

(2.4)

0.8

(Gains) and losses in fair value

(0.2)

2.4

(Proceeds) expenses from share based payments

0.7

(0.6)

Net (gains) losses on disposals of fixed assets

(45.5)

0.1

Goodwill impairment

19.8

-

Intangible assets impairment

24.9

-

Other

0.4

(1.6)

TOTAL

88.0

94.8

As at 31 January 2019, the provision variation is mainly related to additional charges on asset depreciation for an amount of 2.5 million euros and to added charges on provisions presented in liabilities for 4.8 million euros. As at 31 January 2018, the provision variation was mainly related to additional charges on asset depreciation for an amount of 0.1 million euros and to added charges on provisions presented in liabilities for 0.7 million euros. In 2018, the net (gains) or losses on disposals of fixed assets are mainly related to the sale of a bulding in Clichy (France) and the divestment of the subsidiary Quadient Data USA (former Satori Software).

As at 31 January 2019, the line “Other” mainly relates to the depreciation of Quadient Data Netherlands (former Human Inference) assets classified as assets held for sale (6.6 million euros), the reversal of the earn-out not paid on icon Systemhaus acquisition (7.5 million euros), the research tax credit (3.6 million euros) and the depreciation of non recoverable leasing assets (4.3 million euros). As at 31 January 2018, it was mainly related to the research tax credit for an amount of 1.6 million euros.

8-2:

Working capital variation

31 January 2019

31 January 2018

Inventories variation

(1.5)

2.0

Trade accounts receivable variation

12.2

9.0

Deferred income variation

(0.9)

(4.7)

Trade accounts payable variation

1.3

5.7

Other current assets and liabilities variation

4.0

8.6

TOTAL

15.1

20.6

The variation of the other current assets and liabilities is mainly explained by time differences on prepayments.

Impact of changes in scope 8-3: As at 31 January 2019, financial investments net of cash acquired have led to a net cash out of 26.3 million euros which includes the following operations: a cash collection related to the sale of Quadient Data USA (ex-Satori Software) and cash-outs mostly triggered by the acquisition of Parcel Pending in the United States and the payment of the last earn-out on the acquisition of icon Systemhaus. As at 31 January 2018, financial investments net of cash acquired have led to a cash out of 23.4 million euros, mostly related to the acquisition of Claritus in the United States and the buying of Temando minority interests.

New borrowings and repayment of borrowings On 9 July 2018, Neopost bought back in the market an amount of 23.0 million euros of its bond 2.50% issued on 23 June 2014. An amount of 5.0 million United States dollars (4.2 million euros) was refunded on 20 June 2018 on the private placement United States, in accordance with the repayment schedule currently in force. 8-4:

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REGISTRATION DOCUMENT 2018 / NEOPOST