NEOPOST - 2018 Registration document

3

Management report

Review of the Neopost group’s financial position and results in 2018

Income statement

(In millions of euros)

31 January 2019

31 January 2018

Sales

1,091.9

100.0 % 1,111.7

100.0%

Cost of sales

(271.9)

(24.9) %

(279.3)

(25.1)%

Gross margin

820.0

75.1 %

832.4

74.9%

R&D expenses

(56.9)

(5.2) %

(56.9)

(5.1)%

Selling expenses

(274.1)

(25.1) %

(279.6)

(25.1)%

Administrative expenses

(194.4)

(17.8) %

(194.9)

(17.6)%

Maintenance & other operating expenses

(94.5)

(8.7) %

(99.9)

(9.0)%

Employee profit-sharing and share-based payments

(0.8)

(0.1) %

1.2

0.0%

Current operating income excluding expenses related to acquisitions

199.3

18.2 %

202.3

18.2%

Expenses related to acquisitions

(17.2)

(1.6) %

(11.3)

(1.0)%

Current operating income

182.1

16.6 %

191.0

17.2%

Structure optimization expense

(13.1)

(1.2) %

(13.2)

(1.2)%

Other operating expenses

(11.5)

(1.0) %

(11.4)

(1.0)%

Operating income

157.5

14.4 %

166.4

15.0%

Financial income/(expenses)

(30.5)

(2.8) %

(34.6)

(3.1)%

Income before taxes

127.0

11.6 %

131.8

11.9%

Income taxes

(36.8)

(3.4) %

(0.8)

(0.1)%

Income from associated companies

1.4

0.1 %

1.7

0.1%

NET INCOME

91.6

8.4 % 132.7

11.9%

Attributable to:

• •

holders of the parent company

91.5

8.4 %

133.8

12.0%

non-controlling interests

0.1

0.0 %

(1.1)

(0.1)%

Change in sales by division

Change at constant exchange rates

Organic change (a)

(In millions of euros)

2019

2018

Change

Enterprise Digital Solutions (EDS)

146.9

135.9

+8.1%

+10.1% +11.6%

Neopost Shipping (a)

65.6

57.2

+14.6%

+16.6% +16.6%

SME Solutions

904.6

941.6

(3.9)%

(2.1)%

(2.1)%

Eliminations

(25.3)

(23.0)

-

-

-

TOTAL

1,091.9

1,111.7

(1.8)%

+0.1% +0.2%

Full-year 2018 sales are compared to 2017 sales, minus €1.8 million corresponding to the sales of DMTI Spatial. (a)

Enterprise Digital Solutions (EDS) For the full-year 2018, Enterprise Digital Solutions sales rose +10.1% excluding currency effects. Restated for scope effects stemming from the disposal of DMTI Spatial, sales increased by +11.6% in organic terms. This good performance was linked to Customer Communications Management, which recorded 16.3% organic

growth in 2018, reflecting both an increase in recurring revenue and in license sales, thanks in particular to several large deals signed in Q4 2018, for a total of over €5 million. Data quality activities were down -5.7% in organic terms. These activities (Satori Software and Human Inference) were divested at the end of financial year 2018 / early 2019.

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REGISTRATION DOCUMENT 2018 / NEOPOST