NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

31 January 2018

Current portion

Non-current portion

31 January 2017

Added

Used Non-used

Other

Other provisions Structure optimization Business risk/customer guarantees

7.5

14.0

(15.1)

(0.8)

(0.3)

5.3

5.3

-

0.5

0.1

(0.0)

(0.2)

0.0

0.4

0.4

-

Dispute provisions

3.6

1.7

(0.6)

(0.4)

0.3

4.6

2.0

2.6

Other

1.7

3.4

(0.7)

(0.6)

(0.3)

3.5

2.8

0.7

13.3

19.2 (16.4)

(2.0)

(0.3)

13.8

10.5

3.3

Retirement benefit obligations – note 9–3

24.5

5.3

(5.0)

(0.1)

(0.9)

23.8

-

23.8

Long term incentives – note 9-5

2.1

0.8

(1.1)

(0.3)

(0.0)

1.5

0.5

1.0

Total

39.9

25.3 (22.5)

(2.4)

(1.2)

39.1

11.0

28.1

Structure optimization The Group pursues the optimization of its operations. Provisions totaling 5.3 million euros were booked as at 31 January 2018. In 2018, additional expenses of 14.0million euros were booked and (14.3) million euros were used.

As at 31 January 2019, the balance of these provisions is 5.1 million euros.

Other As at 31 January 2019, a total 2.8 million euros (3.5 million euros as at 31 January 2018) is booked under “Other provisions.”

10-2:

Contingent liabilities Accounting principles

10-2-1:

resources embodying economic benefits will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized and are described in the notes when they are material, except in the case of business combinations where they are identifiable items that are backed by present obligations and can be estimated reliably.

Unlike the definition of provision given in note 10-1-1, a contingent liability is: either a possible obligation that arises from past events • and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or a present obligation that arises from past events but • not recognized because it is unlikely that an outflow of 10-2-2: In their everyday activities, Neopost entities are regularly subject to tax investigations. Tax adjustments or uncertain tax positions not yet subject to tax adjustment, are covered with appropriate provisions. The amount of these provisions is regularly reviewed. 10-3: As of 31 January 2019, other non-current debt amount to 7.2million euros. Earn-outs debts amount to 6.8 million euros, compared with 10.6 million euros as at 31 January 2018. The variation is mainly explained by the reversal of icon Systemhaus' earn-out and by the long-term earn-out recorded on the acquisition of Parcel Pending. Contingent liabilities identified Other non-current debts

The American holding received a tax adjustment notification in July 2014. An agreement has been reached with the Internal Revenue Service (IRS) during the first semester 2018: the dispute is resolved.

Earn-outs are generally based on achieving financial targets in terms of revenue over two years following the acquisition. Earn-out values recorded as of 31 January 2019 are the best estimate of the future performance of our acquisitions.

151

REGISTRATION DOCUMENT 2018 / NEOPOST