NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

Restatement of leasing activities With a few rare exceptions, leasing activities are the responsibility of distinct legal entities. This separation allows for the calculation of consolidated aggregates excluding the leasing activity. Activities that are not isolated in distinct legal entities are not restated. Consolidated net debt excluding leasing is calculated on the basis of a restated consolidated balance sheet whereby the leasing companies are consolidated under the equity method and not included in the Group scope of consolidation. Using this restated balance sheet, the aggregate is calculated on the basis of the same balance sheet items used for calculating consolidated net debt. Leasing net debt is calculated using these same consolidated financial statements, but in this case only for the scope of leasing companies. Consolidated EBITDA excluding leasing is calculated on the basis of a restated consolidated income statement whereby the leasing companies are consolidated under Applicability and definition of financial covenants 11-2-3-2: With the exception of the Neopost S.A. 2.50% bond issue, which is not subject to any covenant, the various debts (bonds, private placements and revolving credit facilities) are

the equity method and not included in the Group scope of consolidation. Using this restated income statement, the aggregate is calculated on the basis of the same income statement items used for calculating consolidated net debt. Leasing net portfolio The leasing net portfolio is calculated on the basis of consolidated income statements through the addition of net long-term lease receivables and net short-term lease receivables. The net denotes that the leasing portfolio gross value is reduced by the amount of bad debt provision. Default rate The default rate is calculated on the basis of the ratio of provisions for bad debt on lease receivables to the leasing net portfolio.

subject to financial covenants. Failure to comply with these covenants may lead to early repayment of the debt. Neopost

complies with all covenants at 31 January 2018.

Covenants calculation 11-2-3-3: AGGREGATES The aggregates presented below are those used for calculating the covenants as set out in 11-2-3-1.

31 January 2018

31 January 2017

Consolidated net debt

661.2

758.9

Consolidated net debt excluding leasing

137.7

155.3

Leasing net debt

523.5

603.6

Consolidated EBITDA

284.8

294.9

Consolidated EBITDA excluding leasing

190.2

201.1

Cost of net financial debt

32.3

29.7

Leasing net portfolio

690.8

778.1

Provision for bad debt

10.3

11.1

RATIOS CALCULATION

Covenant to comply

31 January 2018

31 January 2017

United States private placement Consolidated net debt/consolidated EBITDA

< 3.25

2.32

2.57

Other debt subject to the covenants Consolidated net debt excluding leasing/consolidated EBITDA excluding leasing

< 3.0

0.72

0.77

Cost of net financial debt/consolidated EBITDA

> 4

8.84

10.01

Leasing net debt/leasing net portfolio

< 90%

76.2%

77.6%

Default rate

<= 5%

1.49%

1.43%

Shareholders’ equity attributable to holders of the parent company must be greater than 525 million euros or the US Private Placement and 600 million euros for other debt. Shareholders’ equity attributable to holders of the parent company amounted to 1,161.1 million euros as at 31 January 2018, the ratio is respected.

145

REGISTRATION DOCUMENT 2017 / NEOPOST