NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

4-1-3: Goodwill is broken down as follows by cash-generating unit:

Breakdown of goodwill by cash-generating unit

31 January 2018

31 January 2017

France

167.4

167.4

United States

325.3

345.8

United Kingdom

124.1

124.4

Germany

66.6

66.5

Netherlands & Belgium

28.3

28.3

Switzerland

25.1

26.2

Denmark

16.0

16.0

Sweden

14.4

14.8

Norway

7.1

7.5

Australia & Asia

29.2

31.4

Italy

6.6

6.6

Ireland

5.5

5.5

Canada

2.4

2.3

Finland

2.3

2.3

SME Solutions

820.3

845.0

Enterprise Digital Solutions

200.9

209.5

Neopost Shipping

20.5

22.6

Temando

19.8

43.7

TOTAL NET GOODWILL

1,061.5

1,120.8

4-2:

Intangible assets Accounting principles

4-2-1:

the technical feasibility of the project has been • demonstrated; there is a proven intention to complete the project and • use or sell the products developed under it; the necessary resources for completing the project are • available; the existence of a potential market for the production • arising from this project or its internal usefulness has been demonstrated. Such development expenses are amortized over a period of four to ten years, reflecting the average useful life of marketed products. Other intangible fixed assets Other intangible fixed assets are amortized on a straight line basis over a period representing the best estimate of the assets’ useful life.

Intangible fixed assets acquired separately are recognized at acquisition cost. Intangible fixed assets acquired as part of a business combination are recognized at fair value on their acquisition date, separately from goodwill if they meet the two following conditions: they are identifiable, i.e. they result from legal or • contractual rights; they are separable from the acquired entity. • Intangible fixed assets include software, patents, lease rights and activated development expenses. Development expenses In accordance with IAS 38, development expenses meeting the following conditions are recognized as intangible fixed assets: the project is clearly identified and the costs relating to • it are individually identified and reliably monitored;

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