NEOPOST_REGISTRATION_DOCUMENT_2017

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Financial statements

Consolidated financial statements

IAS 40: Investment property; • IFRIC 23: Uncertainty over income tax treatments; • IFRS 17: Insurance contracts. • For Neopost, IFRS 15 has been applicable since 1 st February 2018. It can be applied using either the full-retrospective or the modified-retrospective approach. Neopost has opted for the modified-retrospective approach with cumulative effect at first application. It will be applied to new contracts signed on or after the date the standard goes into force and to contracts in progress on that date. An indepth analysis carried out in 2016 and 2017 revealed that the standard will not have a significant impact on revenue recognition in the Neopost Group. The key points of focus identified concern checking the revenue recognition timetable for licenses sales, in particular those requiring a high level of customization to adapt the solution to the client's specific environment. Regarding IFRS 9 and IFRS 16, analyseis are ongoing and the Group cannot comment at this time as to what the financial implications of these standards might be. The Group is also assessing the effects of the other standards that are mandatory after 1 February 2018 as well as new standards not yet adopted, but does not expect these to have any significant impact on its financial position. 2-2: In order to prepare this financial information, Neopost has made estimates and used assumptions that may affect the amounts presented under assets and liabilities, as well as the amounts presented under income and expenses for the year. The main material estimates made when preparing the financial statements relate in particular to retirement benefit obligations, deferred taxes, goodwill, some provisions and the useful life of fixed assets. Use of estimates

These estimates and assessments are reviewed regularly on the basis of actual experience and various other factors considered reasonable, which form the basis of the measurement of book value for assets and liabilities. Actual outcomes might differ substantially from these estimates if different assumptions or conditions are applied. and receivables Transactions in foreign currencies are recorded at the exchange rate in force on the date of the transaction. All assets and liabilities denominated in foreign currencies are translated at the year-end exchange rate in force at closing. The resulting gains and losses are recognized in the income statement, with the exception of variances on loans or borrowings which form part of the net investment in a foreign entity. These are booked directly under shareholders’ equity until disinvestment. Foreign currency payables 2-3: Translation of financial statements denominated in foreign currencies The operating currency for each of the Group’s entities is the currency of the economic environment in which that entity operates. Financial statements of subsidiaries operating outside France, which are presented in local currencies, are translated into euros – the currency used in the Group’s financial statements – at the year-end exchange rate. Income and expenses so as cash flow statements are translated at the average exchange rate over the period. The resulting translation variance is recognized in the translation adjustment reserve under shareholders’ equity. 2-4:

The exchange rates for the main Group’s main currencies are as follows:

31 January 2018

31 January 2017

Period end

Average

Period end

Average

United States dollar (USD)

1.2457

1.1424

1.0755

1.1044

Pound Sterling (GBP)

0.8791

0.8779

0.8611

0.8276

Canadian dollar (CAD)

1.5290

1.4737

1.4056

1.4545

Swiss franc (CHF)

1.1631

1.1199

1.0668

1.0883

Japanese yen (JPY)

135.6000

127.7400

121.9400

119.7733

Norwegian kroners (NOK)

9.5620

9.3820

8.8880

9.2430

Swedish kroners (SEK)

9.7645

9.6624

9.4505

9.4860

Danish kroners (DKK)

7.4419

7.4395

7.4373

7.4432

Australian dollar (AUD)

1.5357

1.4819

1.4198

1.4780

Singapore dollar (SGD)

1.6288

1.5661

1.5201

1.5246

Indian rupee (INR)

79.1800

73.9458

72.8005

74.2785

Brazilian real (BRL)

3.9368

3.6478

3.3535

3.7775

Chinese yuan (CNY)

7.8340

7.6699

7.3970

7.3645

Czech koruna (CZK)

25.2720

26.1964

27.0210

27.0339

Hungarian forint (HUF)

310.6500

309.2960

310.6400

310.9852

Polish zloty (PLN)

4.1503

4.2393

4.3239

4.3603

New-Zealand dollar (NZD)

1.6803

1.6052

1.4709

1.5750

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REGISTRATION DOCUMENT 2017 / NEOPOST