NEOPOST - 2018 Registration document

6

Financial statements

Consolidated financial statements

13-3:

Earnings per share Accounting principles

13-3-1:

Basic earnings per share are calculated by dividing earnings for the period attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares during the period. It is restated with the payment of the coupons related to the ODIRNANE issue. Fully-diluted earnings per share are calculated by dividing earnings for the period attributable to ordinary equity holders of the parent company by the weighted average number of ordinary shares outstanding during the year, plus the weighted average number of ordinary shares that would have been issued on conversion of all potential dilutive ordinary shares. The calculation used to determine fully-diluted earnings per share only takes into account instruments with a dilutive effect. i.e. those which have the effect of reducing earnings per share. It was considered that ODIRNANE has a dilutive impact given its presentation in equity instruments.

Neopost uses the share buyback method for stock options. In calculating fully-diluted earnings per share, dilutive options are assumed to have been exercised. The income from these instruments is assumed to have been received when the ordinary shares are issued, at the average market price during the period. The difference between the number of ordinary shares issued and the number of ordinary shares that might have been issued at the average market price is treated as an issue of ordinary shares without offset. In this way, options only have a dilutive effect when the average market price of ordinary shares during the period exceeds the strike price of the options. All non-dilutive options are excluded from the calculation of the weighted average number of stock options outstanding.

Earnings per share calculation 13-3-2: The table below sets out the earnings figures used to calculate basic and fully-diluted earnings per share for all activities:

31 January 2019

31 January 2018

Net income – attributable to equity holders of the parent company

91.5

133.8

ODIRNANE dividends

(8.9)

(8.9)

Restated basic earnings

82.6

124.9

Effect of dilutive instruments: Dilutive free shares • ODIRNANE conversion

0.7

1.1

•

8.9

8.9

Diluted net income (B)

92.2

134.9

Number of outstanding shares

34,402

34,399

Effect on a prorata time basis of dividend payments in shares, the exercise of stock options, share buybacks for cancellation and liquidity contract

12

51

Weighted average number of shares outstanding (in thousands)* (C)

34,414

34,450

Weighted average number of outstanding free shares, prorata temporis

229

243

Number of shares related to bonds (ODIRNANE), prorata temporis

5,968

5,537

Number of shares fully diluted (in thousands)* (D)

40,611

40,230

NET EARNINGS PER SHARE (IN EUROS) (A)/(C)

2.40

3,62

DILUTED NET EARNINGS PER SHARE (IN EUROS) (B)/(D)

2.27

3,35

* Weighted average over the period

There are no anti-dilutive instruments.

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REGISTRATION DOCUMENT 2018 / NEOPOST