NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

Note 9

Contingency and loss provisions

Contingency and loss provisions, accounted for in accordance with CRC regulation no. 2000-06, are intended to cover risks and expenses that events occurring during the year or developments make likely. The purposes of the

provisions are clear but their realization, timing or amounts are uncertain. The provision amount corresponds to the best possible estimate of the cash payment for which there

is no equivalent offset.

31 January 2017

31 January 2018

Added

Used Non-used

Expiry

Loss provisions Unrealized foreign exchange losses

0.9

11.1

-

-

12.0

n/a

Total loss provisions

0.9

11.1

-

-

12.0

Contingency provisions Retirement indemnities

0.7

0.1

-

-

0.8

n/c

Treasury shares

0.1

0.8

(0.5)

-

0.4 1 to 2 years

Phantom shares

0.1

0.1

(0.1)

-

0.1 2 to 4 years

Others

0.2

1.3

(1.5)

-

0.0

n/a

Total contingency provisions

1.1

2.3

(2.1)

-

1.3

TOTAL

2.0

13.4

(2.1)

-

13.3

Treasury shares At 31 January 2018, the Group has 153,027 shares held for the liquidity contact and 10,761 shares to fulfill the commitments on the stock-option and free share attribution

programs for employees and Group executives, compared with 108,167 shares and 4,268 shares as at 31 January 2017.

31 January 2017

31 January 2018

Number

Added

Used Non-used

Number

TOTAL

4,268

0.1

0.8

(0.5)

-

10,761

0.4

Deferred incentive plan (phantom share plan)

The Board of directors of Neopost S.A. decided to set up deferred incentive plans called phantom share plans based on the value of the ordinary shares of Neopost S.A. in which the managers of the Company and its subsidiaries can recommend certain employees to participate. The purpose of these plans is to attract, reward and retain the most qualified people to hold positions of responsibility within Neopost S.A. and its affiliates within the meaning of the article L.225-197-2 of the French commercial code.

The liability is recognized when the phantom shares are attributed and the expense, spread out on the acquisition period (four years). It represents the valuation of the number of phantom shares attributed at the last share price at the end of the financial year. At each closing date, the provision is revaluated based on the last share price and the headcount variation.

Since 2013, four deferred incentive plans were set up. July 2017 plan amounted to 78,020 phantom shares granted to the whole group Neopost employees.

During 2017 an impaiment of 0.1 million of euros has been booked and a reversal of 0.1 million of euros has been booked as well. This provision is adjusted at each closing.

Number of shares granted to Neopost S.A. employees

 Deferred incentive plan

Plan January 2013

6,500

Plan January 2014

2,550

Plan January 2015

2,500

Plan July 2016

3,700

Plan March 2017

2,100

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REGISTRATION DOCUMENT 2017 / NEOPOST