NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

2019 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES IN FINANCIAL YEAR 2019 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2020

Notional value

USD GBP CAD NOK

JPY SEK CHF DKK

CZK SGD AUD PLN

Projected financial assets Projected financial liabilities Net exposure before hedging

184.1 36.8 17.7 50.8 3,326.4 78.7 45.7 47.2

52.7

6.1 30.1

4.1

133.1 27.5 8.1 7.2 1,165.1 14.1 51.4 13.5

600.7

8.7 1.8

4.4

51.0 9.3 9.6 43.6 2,161.3 64.6 (5.7) 33.7 (548.0) (2.6) 28.3 (0.3)

Hedging

(23.0) (6.9) (0.9)

-

(425.0)

-

-

-

160.0

-

-

-

NET EXPOSURE AFTER HEDGING

28.0 2.4 8.7 43.6 1,736.3 64.6 (5.7) 33.7 (388.0) (2.6) 28.3 (0.3)

Neopost uses symmetric options, tunnels in particular. These option instruments are unlikely to be exercised in a reciprocal manner in terms of the spot exchange rate or expiry date. As a result, for each tunnel only one of the two options is reported in the table above. The value of the commitment in these symmetric options is 10.5 million United States dollars sold, 2.5 million pounds sterling sold, 180.0 million Japanese yen sold, and 40.0 million Czech koruna purchased. Neopost also makes use of asymmetric options tunnels. The asymmetric part of this kind of options is presented in the table above with a view to reflecting the Group’s maximum commitment. The asymmetric part by currency is as follows: 5.0 million United States dollars sold.

external counterparties. The derivative instruments used by the treasury department in its hedging strategies are as follows: firm derivatives such as forward currency purchases and • sales; plain vanilla options such as puts and calls; • second generation options (knock-in or knock-out barrier • options). Instrument details The instruments in the portfolio have a maturity of less than twelve months as at 31 January 2019. These instruments are listed below by type and by currency for the period to which they relate.

Hedging instruments

The Neopost group hedges its exchange rate risk using over-the-counter derivative instruments contracted with

2018 FINANCIAL YEAR: ASSETS AND LIABILITIES HEDGING

Notional value – Cash flow hedging

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

USD

4.5

14.5

-

-

-

-

GBP

2.7

2.7

-

-

-

-

CAD

-

0.8

-

-

-

-

NOK

3.5

6.5

-

-

-

-

JPY

-

336.5

-

-

-

-

SEK

11.9

15.0

-

-

-

-

CHF

1.3

-

-

-

-

-

DKK

6.4

-

-

-

-

-

CZK

30.0

-

-

-

-

-

SGD

-

5.5

-

-

-

-

AUD

1.5

3.5

-

-

-

-

PLN

-

0.2

-

-

-

-

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REGISTRATION DOCUMENT 2018 / NEOPOST