NEOPOST_REGISTRATION_DOCUMENT_2017

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Financial statements

Management discussion and analysis of Neopost S.A.'s annual results

Management discussion and analysis of Neopost S.A.'s annual results

Unless otherwise indicated, all the amounts stated hereafter are in million of euros, rounded to one decimal place.

2017 Significant events

There was no significant event.

Operating income

Neopost S.A.'s operating profit amounted to 8.7 million euros compared with a profit of 9.1 million euros as at 31 January 2017.

Financial income/(expense)

Net financial income amounted to 66.1 million euros, down from 268.1 million euros last year. Dividends received by the Company totaled 101.5 million euros as at 31 January 2018 compared with 284.6 million euros for the prior year. Net interest income from Group subsidiaries rose to 21.4 million euros from 20.2 million as at 31 January 2017. Interest expense for external borrowings was 35.4 million euros, compared with 34.8 million euros one year previously. Interest expenses: until 31 January 2017, the procedures for recognition of the long-standing borrowing, by the Company, were applied based on methods recommended by the PCG. Effective from 1 st february 2017, the company chose to apply the preferential method, i.e. the spreading of issue costs for all the new contracts.

Extraordinary net income (loss)

Treasury share disposals under the liquidity contract generated 1.1 million euros (1.5 million euro as at 31 January 2017) in extraordinary income on capital transactions and 1.2 million euros (0.4 million euros as at 31 January 2017) in extraordinary expense. Moreover an exceptional amortization charge on intangible fixed assets capitalized in respect of the implementation of the Inéo platform in the amount of 5.7 million euros was recognized in the accounts on 31 January 2018, due to the abandonment of the project.

Income tax

Net income was positive 78.9 million euros (280.1 million euros as at 31 January 2017), after a net tax benefit totaling 1.6 million euros (1.9 million euros as at 31 January 2017) resulting from the tax consolidation system and recorded tax proceeds of 8.3 million euros in respect of the claim relating to a contribution of 3%, settled during dividend distribution by the Company in 2013, 2014 and 2015. In accordance with article 223 quater of the French general tax code (CGI), the financial statements for the current year include 81,522 euros in non-tax-deductible expenses (article 39-4 of the CGI), but do not include non-tax-deductible general expenses (article 39-5 of the CGI).

Shareholders' equity

Neopost S.A.'s shareholders' equity amounted to 363.9 million euros as at 31 January 2018, an increase of 20.4 million euros year-on-year. This increase corresponds to the income for the 2017 financial year, after deduction of the 58.5 million euros in dividends paid or due to shareholders (an interim dividend of 27.5 million euros in respect of 2016 and 31.0 million euros for the balance in respect of 2016).

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REGISTRATION DOCUMENT 2017 / NEOPOST