NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

Executive compensation 9-6: The main role of the management team is to make strategic decisions for the Group and coordinate their implementation around the world. The gross remuneration of the management team amounted to 7.2 million euros in 2018, compared with 6.2 million euros in 2017. In 2018, Denis Thiery is not part of the management team anymore. Variable remuneration is determined on the basis of attaining Group sales, operating income and capital employed targets. The variable remunerations shown in this table are the amounts booked during the current financial year. The Group recognized an expense of 0.8 million euros in 2018 in respect of stock options and free shares granted to the management team, compared with 1.6 million euros in 2017. 86,000 shares were granted to members of the management team during the 2018 financial year compared with 122,000 in the previous year.

With respect to pensions, the Chief Executive Officer, as well as a number of other Group executives, benefit from a defined contribution pension plan (article 83 of the French general tax code), into which is paid a total of 5% of their remuneration, within the limit of five times the social security maximum amount. Some enjoy a defined benefit pension scheme (article 39 of the French general tax code) with an annuity obligation of 1.1% of pay per year of service for a minimum of eight years and a maximum of twenty years. This annuity is paid after the deduction of the annuities paid within the usual defined contribution plans. There are no new beneficiaries within the defined benefits pension scheme. The amount of these liabilities at the end of January 2019 totaled 2.0 million euros compared with 9.1 million euros as at 31 January 2018 and concerns the members of the management team. This variation is mainly explained by the departure of Denis Thiery as well as the departure of some executives from the defined benefit pension scheme. The cumulative payments stand at 0.1million euros as at 31 January 2019.

Other provisions, contingent liabilities Note 10 and other non-current debts

10-1:

Other provisions

10-1-1:

Accounting principles

a probability that an outflow of resources will be • necessary to extinguish the obligation with no offset expected; an amount that can be reliably measured. • Provisions are split on the balance sheet between current and non-current liabilities.

Provisions are recognized when the following conditions are met simultaneously at the end of the period in question: a current obligation (legal, regulatory, contractual or • implied) resulting from past events;

10-1-2:

Changes in other provisions

31 January

31 January 2019

Current portion

Non-current portion

2018 Added

Used Non-used

Other

Other provisions Structure optimization Business risk/customer guarantees

5.3

14.0

(14.3)

(0.5)

0.6

5.1

5.1

-

0.4

0.0

(0.1)

(0.0)

-

0.3

0.3

-

Dispute provisions

4.6

0.7

(0.3)

(0.6)

-

4.4

2.0

2.4

Other

3.5

1.4

(2.7)

(0.7)

1.3

2.8

2.2

0.6

13.8

16.1 (17.4)

(1.8)

1.9

12.6

9.6

3.0

Retirement benefit obligations – note 9–3

23.8

0.6

(1.2)

(1.2)

0.3

22.3

-

22.3

Long term incentives – note 9-5

1.5

0.9

(0.7)

(0.1)

-

1.6

0.6

1.0

TOTAL

39.1 17.6 (19.3)

(3.1)

2.2

36.5 10.2 26.3

150

REGISTRATION DOCUMENT 2018 / NEOPOST