NEOPOST - 2018 Registration document

6

Financial statements

Analysis of Neopost S.A.’s annual results

Analysis of Neopost S.A.’s annual results

Unless otherwise indicated, all the amounts stated hereafter are in million of euros, rounded to one decimal place.

2018 financial year significant events

Neopost S.A has recorded a full depreciation of its investment in Neopost Shipping Holding Pty Ltd for an amount of 20.5 million euros, and loans and advances accorded to Temando's subsidiaries for respectively 26.0 million euros and 9.4 million euros. As at 31 January 2019, a depreciation of 21.7 million euros is recorded following the overhaul of the project of commun IT tools roll-out in Europe.

The Company is subject to a tax control covering the period from 1 February 2012 to 31 January 2018.

Operating income

Neopost S.A.’s operating loss amounts to 0.1 million euros compared with a profit of 8.7 million euros as at 31 January 2018.

Financial income

Net financial income amount to 50.5 million euros, down from 66.1 million euros as at 31 January 2018. Dividends received by the Company total 116.6 million euros as at 31 January 2019 compared with 101.5 million euros as at 31 January 2018. Net interest income from Group subsidiaries is 19.8 million euros (21.4 million as at 31 January 2018). Interest expenses for external borrowings are 34.8 million euros (35.4 million euros as at 31 January 2018). As at 31 January 2019, a depreciation on the investment in Neopost Shipping Holding Pty Ltd is recorded for an amount of 20.5 million euros, as well as a depreciation of subsidiary loans for an amount of 35.4 million euros.

Extraordinary income

Treasury share disposals under the liquidity contract generate 0.7 million euros (1.1 million euro as at 31 January 2018) in extraordinary income on capital transactions and 1.2 million euros (1.2 million euros as at 31 January 2018) in extraordinary expenses. The expenses capitalized in regard of a project of common IT tools roll-out in Europe were sold to one of the Group's subsidiary for a net book value of 32.6 million euros. An exceptional depreciation of the corresponding intangible fixed assets is recorded for an amount of 21.7 million euros as at 31 January 2019. As at 31 January 2018, an exceptional depreciation of 5.7 million euros was recorded on intangible assets recognized on the implementation of a web platform for SMEs, because of the abandonment of the project.

Income tax

Net income amounts to 38.5 million euros (78.9 million euros as at 31 January 2018), after a net tax benefit totaling 5.5 million euros (1.6 million euros as at 31 January 2018) resulting from the tax consolidation system and from tax proceeds of 4.8 million euros (8.3 million euros as at january 31, 2018) in respect of the claim related to the 3% contribution on dividend distributions made by the Company between 2013 and 2017. In accordance with Article 223 quater of the French General Tax Code (CGI), the financial statements for the current year include 73,831 euros in non-tax-deductible expenses (Article 39-4 of the CGI), but do not include non-tax-deductible general expenses (Article 39-5 of the CGI).

176

REGISTRATION DOCUMENT 2018 / NEOPOST