NEOPOST - 2018 Registration document

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Neopost group activity

Key figures

Current operating income (1) (In million euros)

The current operating income (1) came out at 199 million euros in 2018 from 202 million euros in 2017. Current operating margin (1) was 18.2% of sales stable versus 2017. Excluding icon Systemhaus' earn-out reversal, the current operating margin stood at 17.6% of sales. The EDS division posted an increase in its current operating margin while Neopost Shipping margin was down and SME Solutions' was almost stable. The net cost of debt amounted to (31) million euros from (32) million euros in 2017. The average tax rate came to 29.0% in 2018, compared to 0.6% one year earlier. In 2017, the Group benefitted from non-recurring items (booking of the repayment of taxes on dividends in France and the effect of a decrease in tax in the United States). Conversely, in 2018, the Group notably recorded a provision settling a long-standing tax dispute dating back from 2006 to 2008. The Group’s net attributable income ended at 92 million euros, which represents a net margin of 8.4% of sales, compared to 12.0% in 2017.

202 199

2017 2018

Net attributable

134

income (In million euros)

92

2017 2018

Leverage ratio The net debt/EBITDA (2) ratio improved at 2.3, compared with 2.4 a year earlier. At 31 January 2019, shareholders’ equity was 1,247 million euros. The strong cash flow generation led to a significant decrease in net debt, which at 31 January 2019 stood at 617 million euros versus 675 million euros one year before. Neopost points out that its net debt is fully backed by future cash flows from its rental and leasing activities.

2.4 2.3

2017 2018

Dividend

Net income

€2.40

€0.53

per share

per share

Before acquisition-related expense. (1) EBITDA = current operating income (182 million euros) + depreciation and amortization of tanglible (46 million euros) and (2) intangible (44 millions euros) fixed assets.

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REGISTRATION DOCUMENT 2018 / NEOPOST