NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

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

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.

Maturities and liabilities as at 31 January 2018 are as follows:

More than 5 years

Gross value Less than 1 year One to five years

Undated bonds (ODIRNANE)

266.1

1.1

265.0

-

Bonds issue – Neopost S.A. 3.50%

150.8

0.8

150.0

-

Bonds issue – Neopost S.A. 2.50%

354.4

5.3

349.1

-

United States private placements

121.9

4.7

77.1

40.1

Schuldschein

206.6

2.1

120.6

83.9

Bank loans

0.2

0.2

-

-

Borrowing from Neopost Ireland Ltd

0.6

-

0.6

-

Trade payables

4.5

4.5

-

-

Provisional dividends payable

27.5

27.5

-

-

Tax and social security liabilities

3.6

3.6

-

-

Other debt

334.2

334.2

-

-

TOTAL

1,470.4

384.0

962.4

124.0

Income statement Note 11

Operating income 11-1 Neopost S.A.’s operating profit amounted to 8.7 million euros compared with a profit of 9.1 million euros at 31 January 2017 and breaks down as follow:

31 January 2018

31 January 2017

Assistance to subsidiaries

16.2

17.7

Brand royalties

8.7

9.1

Rebilling of costs paid on behalf of subsidiaries

20.4

17.8

Reversal of depreciation, amortization

0.3

0.9

Revenue from operations

45.6

45.5

Wages, bonuses, commissions and payroll charges

(10.5)

(8.4)

Fees

(3.9)

(3.7)

Expenses related to acquisitions

(0.2)

(1.9)

Purchases, maintenance costs

(8.0)

(7.0)

Transport and travel

(3.1)

(4.7)

Staff seconded

(3.8)

(4.9)

Insurance

(0.5)

(0.7)

Taxes

(1.0)

(0.2)

Rents and associated costs

(1.1)

(0.9)

Directors’ fees

(0.3)

(0.4)

Loss on treasury shares delivered for the allocation of free shares

(0.5)

(0.3)

Borrowing expenses

(0.7)

(0.1)

Depreciation and amortization expenses

(3.1)

(3.0)

Other expenses

(0.2)

(0.2)

Operating expenses

(36.9)

(36.4)

Operating income

8.7

9.1

The brand name contract and management fees contract generated an income of 24.9 million euros as at 31 January 2018 compared with 26.8 million euros as at

31 January 2017. The expenses incurred by the division SME

Solutions were billed to the concerned entities.

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REGISTRATION DOCUMENT 2017 / NEOPOST