NEOPOST - 2018 Registration document

6

Financial statements

Neopost S.A. statements of financial position

Note 3

Intangible and tangible fixed assets

IT implementation projects: five or seven years; • software: five years; • fixtures: ten years; • office furniture and equipment: four, five or eight years. •

Intangible and tangible fixed assets are valued at their acquisition cost (purchase price plus related expenses). Assets are amortized on a straight-line basis according to their useful lives.

The most common amortization periods are as follows:

Intangible fixed assets

Tangible fixed assets

Net book value at 31 January 2017

40.9

0.1

Acquisitions

0.5

0.0

Change in amortization and depreciation

(8.6)

(0.1)

Net book value at 31 January 2018

32.8

0.0

Net disposals

(10.9)

-

Change in amortization and depreciation

(21.8)

-

NET BOOK VALUE AT 31 JANUARY 2019

0.1

0.0

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.

Note 4

Financial assets

Financial assets are valued at their acquisition cost (purchase price plus related expenses) or at their contribution value. An impairment test is carried out at least once a year. The Group projects cash flows. These cash flows are based on revenue and operating income growth assumptions over five years. The valuation of majority stakes is reviewed

every year. The discounting rate is the weighted average cost of capital after tax to which a specific risk premium might be added. The deposit account opened at Exane BNP Paribas for the liquidity contract, which has investments in money market funds, falls into that category.

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REGISTRATION DOCUMENT 2018 / NEOPOST