NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

The corresponding interest flows (excluding margin impacts) were calculated based on constant debt interest rate conditions and exchange rate parity at year-end. The following schedule is obtained:

2019

2020

2021

2022

Interest on fixed rates

8.6

6.9

4.8

1.7

Interest on the variable rate position

8.9

8.5

8.4

10.1

Interest on hedging operations

(2.6)

(2.0)

(0.7)

0.1

TOTAL

14.9

13.4

12.5

11.9

Sensitivity of the financial results to interest rate changes is as follows:

2019

2020

2021

2022

Sensitivity to a +0.5% increase in interest rates

1.1

2.1

2.9

4.4

Sensitivity to a (0.5)% decrease in interest rates

(0.9)

(2.0)

(2.1)

(3.3)

plain vanilla options: buying and selling of caps and floors • (used either alone or in combination); knock-in or knock-out barrier options: buying and selling of • caps and floors (used either alone or in combination); buying and selling of swaptions (used either alone or in • combination). Management mandates, packaged bank hedging products and derivative instruments that introduce a reference other than the underlying asset ( quanto swaps for example) are strictly forbidden by internal procedures.

For 2019, Neopost’s policy was to fix its net financial income in advance. As a result, after hedging and on a fixed-debt basis, 75% of Neopost group debt was not exposed to long-term interest rates for the current year. Only 25% of the debt remained exposed to long-term rates as at 31 January 2019. Instrument details Neopost uses standard and liquid derivative instruments. The instruments used are as follows: firm derivatives: swaps and Forward Rate Agreement • (FRA);

Derivative instrument details The instruments in the portfolio are listed below, according to type, currency and maturity.

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap – Lender EUR/Borrower USD

EUR/USD

-

45.7/50.0

-

Swap – buyer

EUR

-

154.5

-

Swap – receiver

USD

15.0

70.0

-

Cap - buyer

USD

-

55.0

-

Floor – receiver

USD

-

30.0

-

Floor – buyer

EUR

-

18.3

-

DERIVATIVE INSTRUMENTS QUALIFIED AS FAIR VALUE HEDGE

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Swap – buyer

EUR

-

154.5

-

DERIVATIVE INSTRUMENTS QUALIFIED AS CASH FLOW HEDGE

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap

EUR/USD

-

27.4/30.0

-

Swap – receiver

USD

15.0

70.0

-

Cap – buyer

USD

-

55.0

-

Floor – buyer

USD

-

30.0

-

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REGISTRATION DOCUMENT 2018 / NEOPOST