NEOPOST - 2018 Registration document

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Financial statements

Neopost S.A. statements of financial position

Note 1

Presentation of the Company

Neopost S.A. is a French law company, listed on Paris stock exchange and located at 42-46, avenue Aristide Briand, 92220 Bagneux (France).

2016:

Yamato Transport and Neopost formed a joint venture to • launch an open parcel locker network in Japan; acquisition of icon Systemhaus GmbH, the German leader • in Customer Communications Management solutions.

Key dates:

1992: Neopost S.A., holding Company of the Neopost group, was created through a leveraged buyout (LBO) of Alcatel’s mail processing equipment division;

2017:

disposal of DMTI Spatial; • increase in participation of Temando to 100%. • 2018:

1997: a second LBO took place;

1999: Neopost was listed on the Premier Marché of Euronext Paris stock market on 23 February at a price of 15 euros per share; 2002: acquisition of Ascom Hasler, the mailing systems division of the Swiss company Ascom; 2009: Neopost enhanced its service offering with the acquisition of Satori Software, one of the world market leaders in postal address quality management tools; 2012: acquisition of GMC Software Technology, a leader in the market of Customer Communications Management (CCM) and Human Inference, specialist in Data Quality and Master Data management (MDM); 2013: acquisition of DMTI Spatial, the leading Canadian provider of location-based data quality solutions; 2014: acquisition of ProShip, a leading American provider of high-volume multi-carrier parcel shipping solutions; 2015: acquisition of a majority stake in Temando Holding Pty Ltd, an Australian company providing logistic solutions for the e-commerce sector. The financial statements closed on 31 January 2019 are prepared in accordance with the measures of the French commercial code (articles L. 123-12 to L.123-28), of the French accounting rules authority (ANC) regulation no. 2014-03 dated 05/06/2014 modified by the ANC regulation no. 2016-07 dated 26/12/2016 and by the ANC regulation no. 2018-07 dated 10/12/2018 related to the French chart of accounts and the French accounting regulatory committee ( Comité de la Réglementation Comptable – CRC) regulations. The provisions regarding financial derivative instruments have been supplemented by 2015-05 ANC regulation of 2 July 2015. The following rules are applied in accordance with the prudence principle: Note 2

disposal by the american subsidiary Mailroom Holding of • Satori Sotware; acquisition by the american subsidiary Mailroom Holding of • Parcel Pending.

Highlights of 2018:

Neopost S.A has fully depreciated its investment in Neopost Shipping Holding Pty Ltd for an amount of 20.5 million euros, as well as 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 common IT tools roll-out in Europe. The company is subject to a tax control covering the period from the 1 February 2012 to the 31 January 2018.

Main accounting principles

continuity of accounting methods from one year to another; • and in accordance with the general rules of establishment and presentation of annual financial statements. The basic method for valuing accounting entries is the historical cost method. Since 1 February 2005, the Company applied regulations relating to the definition, measurement and recognition of assets (CRC regulation 04-06) and amortization or depreciation (CRC regulation 02-10). Concerning, the borrowings issue costs the Company chose to apply the reference method, i.e. the spread of issue costs over the contract duration.

business continuity; • independence of financial years; •

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REGISTRATION DOCUMENT 2018 / NEOPOST