NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

Note 8

Cash flow details

Cash flows correspond to consolidated balance sheet items. However, these flows may differ from balance sheet variations in particular because of translation of operations in foreign

currencies, translation of subsidiaries’ financial statements denominated in foreign currencies and scope variations.

8-1:

Expenses (income) with no cash effect

31 January 2018

31 January 2017

Amortization (reversal) of fixed assets

93.7

92.0

Provisions (reversals)

0.8

(2.0)

Gains (losses) in fair value

2.4

0.8

Proceeds (expenses) from share based payments

(0.6)

0.3

Net gains (losses) on disposals of fixed assets

0.1

0.0

Other

(1.6)

3.0

TOTAL

94.8

94.1

As at 31 January 2018, the provision variation is mainly related to additional charges on asset depreciation for an amount of 0.1 million euros and to added charges on provisions presented in liabilities for 0.7 million euros. As at 31 January 2017, the provision variation was mainly related to reversals of asset depreciation for an amount of 0.3 million euros and to reversals of provisions presented in liabilities for 1.7 million euros.

As at 31 January 2018, the line “Other” mainly related to the research tax credit for an amount of 1.6 million euros. As at 31 January 2017, it was mainly composed of research tax credit and the depreciation of assets classified as assets held for sale.

8-2:

Working capital variation

31 January 2018

31 January 2017

Inventories variation

2.0

4.3

Trade accounts receivable variation

9.0

(11.0)

Deferred income variation

(4.7)

(1.2)

Trade accounts payable variation

5.7

(1.9)

Other current assets and liabilities variation

8.6

1.2

TOTAL

20.6

(8.6)

New borrowings and repayment of borrowings In February 2017, Neopost raised the equivalent of 215 million euros (86.5 million United States dollars and 135 million euros) maturing in three, five and six years, through a Schuldschein private placement under German law. In April 2017, Neopost repaid before maturity 110 million United States dollars of the United States private placement. In June 2017, Neopost contracted a new revolving euro/dollar credit line for 400 million euros with ten international banks. This is a five-year facility with a one-year extension option. In November 2017, Neopost prepaid 19.0 million euros from the United States private placement. 8-4:

The variation of the other current assets and liabilities is mainly explained by earn-outs reversals with no cash effect.

Financial investments 8-3: As at 31 January 2018, financial investments net of cash acquired have led to a cash out of 23.4 million euros, mostly related to the acquisition of Claritus Inc. in the United States and the buying of Temando minority interests. As at 31 January 2017, financial investments net of cash acquired have led to a cash out of 24.0 million euros, mostly related to the acquisition of icon.

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REGISTRATION DOCUMENT 2017 / NEOPOST