NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

INSTRUMENTS NOT ELIGIBLE FOR HEDGE ACCOUNTING

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap – Lender EUR/Borrower USD

EUR/USD

-

18.3/20.0

-

Floor – buyer

EUR

-

18.3

-

Instrument valuations Derivative instruments are recognized in accordance with the accounting principles and methods presented in note 11–4-1. All interest rate derivative instruments are thus valued on the balance sheet and in the income statement at their market value, in accordance with IFRS 9. As of 1 February 2013 and according to IFRS 13, Neopost set up a credit risk methodology concerning the valuation of financial instruments. In light of the immaterial impacts of credit risk, Neopost decided not to recognize them in the financial statements at 31 January 2019.

Changes in the market value of instruments not eligible for hedge accounting have been charged in their entirety to the income statement. The ineffective portion of instruments eligible for hedge accounting, plus the time value of these instruments, have been charged to net financial expenses. Changes in the intrinsic value of these instruments have been recognized as restatement of equity.

Neopost applies IFRS 9 on hedge instruments.

Changes recognized through equity – Fair value via OCI*

Changes recognized through equity – Aligned cost of hedge

Changes recognized in the income statement – Fair value via P&L

Changes recognized in the income statement – Non aligned cost of hedge

Premium on new operations

31 January 2018

31 January 2019

Financial assets (derivatives)

12.5

-

(0.4)

(0.1)

(2.9)

-

9.1

Debt and swap at fair value hedge Derivative instruments qualified as cash flow hedge Derivative instruments not eligible

4.1

-

-

-

0.5

-

4.6

6.1

-

(0.4)

(0.1)

(2.0)

0.2

3.8

2.3

-

-

-

(1.4)

(0.2)

0.7

Financial liabilities (derivatives)

-

-

-

-

-

-

-

Derivative instruments qualified as cash flow hedge Derivative instruments not eligible

-

-

-

-

-

-

-

-

-

-

-

-

-

-

* OCI: Other Comprehensive Income.

Sensitivity to interest rate variations The impact on the accounts of an increase of 0.5% in the interest rates for the year ending 31 January 2019 is as follows:

Income statement impact

31 January 2019

31 January 2019 Impact on equity

Financial assets (derivatives)

9.1

1.8

(2.0)

8.9

Debt and swap at fair value hedge

4.6

-

(2.0)

2.6

Derivative instruments qualified as cash flow hedge

3.8

1.8

-

5.6

Derivative instruments not eligible

0.7

-

-

0.7

Financial liabilities (derivatives)

-

-

-

-

Derivative instruments qualified as cash flow hedge

-

-

-

-

Derivative instruments not eligible

-

-

-

-

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REGISTRATION DOCUMENT 2018 / NEOPOST