NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

Derivative instrument details The instruments in the portfolio are listed below, according to type, currency and maturity.

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap - Lender EUR/Borrower USD

EUR/USD

-

18.3/20.0

27.4/30.0

Swap – buyer

EUR

-

125.0

29.5

Swap – receiver

USD

-

40.0

-

Cap – buyer

USD

-

55.0

-

EUR

130.0

-

-

Floor – receiver

USD

-

30.0

-

Floor – buyer

EUR

-

18.3

-

DERIVATIVE INSTRUMENTS QUALIFIED AS FAIR VALUE HEDGE

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Swap – buyer

EUR

-

125.0

29.5

DERIVATIVE INSTRUMENTS QUALIFIED AS CASH FLOW HEDGE

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap

EUR/USD

-

-

27.4/30.0

Swap – receiver

USD

-

40.0

-

Cap – buyer

USD

-

55.0

-

Floor – buyer

USD

-

30.0

-

INSTRUMENTS NOT ELIGIBLE FOR HEDGE ACCOUNTING

Notional value

Currency

< 1 year

1 to 5 years

> 5 years

Cross currency swap - Lender EUR/Borrower USD

EUR/USD

-

18.3/20.0

-

Cap – buyer

EUR

130.0

-

-

Floor – buyer

EUR

-

18.3

-

Instrument valuations Derivative instruments are recognized in accordance with the accounting principles and methods presented in note 11-4-1. All interest rate derivative instruments are thus valued on the balance sheet and in the income statement at their market value, in accordance with IAS 39. As of 1 February 2013 and according to IFRS 13 standard, Neopost set up a credit risk methodology concerning the valuation of financial instruments. In light of the immaterial impacts of credit risk, Neopost decided not to recognize them in the financial statements at 31 January 2018.

Changes in the market value of instruments not eligible for hedge accounting have been charged in their entirety to the income statement. The ineffective portion of instruments eligible for hedge accounting, plus the time value of these instruments, has been charged to net financial expense. Changes in the intrinsic value of these instruments have been recognized as a restatement of net assets.

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REGISTRATION DOCUMENT 2017 / NEOPOST