NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

31 January 2018

31 January 2017

Change in value of obligations Present value of obligations at start of period

210.1

193.8

Service cost

2.1

2.4

Discounting cost

4.9

5.5

Actuarial (gains) or losses

1.2

31.7

Payments made

(10.3)

(7.1)

Scope variation

0.3

(0.3)

Other (of which translation difference)

(6.1)

(15.9)

Present value of liabilities at end of period

202.2

210.1

Change in hedging assets Fair value of hedging assets at beginning of period

215.0

207.5

Expected return on plan assets

5.2

5.9

Actuarial gains (losses)

4.4

27.4

Contributions paid by employer

4.9

1.6

Payments made by fund

(9.5)

(7.2)

Scope variation

0.3

0.1

Other (of which translation difference)

(6.5)

(20.3)

Fair value of hedging assets at end of period

213.8

215.0

Financial hedging Plans’ position

11.6

4.9

of which recognized in Assets

35.4

29.4

of which recognized in Liabilities

(23.8)

(24.5)

Amount recognized in the consolidated income statements Service cost

2.1

2.4

Discounting cost

4.9

5.5

Expected return on plan assets

(5.2)

(5.9)

Total retirement benefit expense

1.8

2.0

Amount recognized in the consolidated statements of comprehensive income Actuarial gains (losses)

(3.2)

4.3

On obligations

1.2

31.7

On hedging assets

(4.4)

(27.4)

Amount recognized in statement of recognized income and expense to date

(1.1)

2.1

Actuarial assumptions Discount rate*

2.5%

2.8%

Expected long-term inflation rate – Retail Price Inflation (RPI)*

3.2%

3.4%

Expected long-term inflation rate – Consumer Price Index (CPI)*

2.1%

2.4%

Expected long-term rate of annuity increases*

3.1%

3.2%

Breakdown of hedging assets Equities

12%

13%

Bonds

33%

46%

Real estate

4%

4%

Other investments 37% The above actuarial assumptions relate to the English subsidiary which alone accounts for 73% of the Group’s retirement benefit obligations. * 51%

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REGISTRATION DOCUMENT 2017 / NEOPOST