NEOPOST - 2018 Registration document

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Financial statements

Consolidated financial statements

Leasing net portfolio The leasing net portfolio is calculated on the basis of consolidated income statements through the addition of net long-term lease receivables and net short-term lease receivables. The net denotes that the leasing portfolio gross value is reduced by the amount of bad debt provision. Default rate The default rate is calculated on the basis of the ratio of provisions for bad debt on lease receivables to the leasing net portfolio.

Leasing net debt is calculated using these same consolidated financial statements, but in this case only for the scope of leasing companies. Consolidated EBITDA excluding leasing is calculated on the basis of a restated consolidated income statement whereby the leasing companies are consolidated under the equity method and not included in the Group scope of consolidation. Using this restated income statement, the aggregate is calculated on the basis of the same income statement items used for calculating the consolidated EBITDA.

Applicability and definition of financial covenants 11-2-3-2:

With the exception of the Neopost S.A. - 2.50% bond issue, which is not subject to any covenant, the various debts (bonds, private placements, Schuldschein and revolving credit facilities) are subject to financial covenants. Failure to comply

with these covenants may lead to early repayment of the debt. Neopost complies with all covenants at 31 January 2019.

11-2-3-3: Covenant calculation

AGGREGATES The aggregates presented below are those used for calculating the covenants as set out in note 11-2-3-1.

31 January 2019

31 January 2018

Consolidated net debt

612.3

661.2

Consolidated net debt excluding leasing

73.8

137.7

Leasing net debt

538.5

523.5

Consolidated EBITDA

272.4

284.8

Consolidated EBITDA excluding leasing

187.8

190.2

Cost of net financial debt

31.2

32.3

Leasing net portfolio

686.3

690.8

Provision for bad debt

10.6

10.3

COVENANT CALCULATION

Covenant to comply

31 January 2019

31 January 2018

United States private placement Consolidated net debt/consolidated EBITDA

< 3.25

2.25

2.32

Other debts subject to covenants Consolidated net debt excluding leasing/consolidated EBITDA excluding leasing

< 3.0

0.39

0.72

Cost of net financial debt/consolidated EBITDA

> 4

8.94

8.84

Leasing net debt/leasing net portfolio

< 90%

78.5%

76.2%

Default rate

<= 5%

1.54%

1.49%

Shareholders’ equity attributable to holders of the parent company must be greater than 525 million euros for the United States Private Placement and 600 million euros for the other debts. Shareholders’ equity attributable to holders of the parent company amounts to 1,238.6 million euros as at 31 January 2019, the ratio is respected.

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REGISTRATION DOCUMENT 2018 / NEOPOST