NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

The operating expenses include a cost of 0.5 million euros due to the loss on treasury shares delivered for the allocation of free shares (0.3 million euros at 31 January 2017).

Number of shares granted

Loss on treasury shares

 Date

01/07/2015

7,692

0.5

Financial income/(expenses) 11-2 Net financial income amounted to 66.1 million euros compared with 268.1 million euros a year before and breaks down as follows:

31 January 2018

31 January 2017

Interest expenses on external borrowings

(35.4)

(34.8)

Net income on internal loans and borrowings

21.4

20.2

Dividends received

101.5

284.6

Revenue from disposals of securities

0.1

0.0

Other financial products

2.5

4.9

Net gain on foreign exchange and swaps

(12.5)

(10.1)

(Provision)/reversal for losses on foreign exchange

(11.2)

(0.6)

Reversal of impairment on receivables

-

4.0

Reversal of impairment on equity investments

(0.3)

(0.1)

TOTAL

66.1

268.1

Interest expenses: until 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 1st february 2017, the company chose to apply the preferential method, i.e. the spreading of issue costs for all

the new contracts.

Extraordinary income 11-3 Treasury shares disposals under the liquidity contract generated extraordinary income from capital transactions of 1.1 million euros (1.5 million euros at 31 January 17) and

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 extraordinary expenses from capital transactions of 1.2 million on 31 January 2018 due to the abandonment of the project. euros (0.4 million euris at 31 January 2017). An exceptional

11-4

Income tax

Neopost S.A. is the parent company of an integrated tax group under the terms of article 223A of the French general tax code. In this context, Neopost S.A. is only liable for income tax due by its subsidiaries with a view to determining the whole Group’s earnings. The tax consolidation agreement used in the Group is based on the principle of neutrality and provides that the tax burden is borne by the Company as in the absence of tax

consolidation. The tax is thus calculated on the Company's own taxable income. The tax savings realized by the Group, through losses, adjustments or tax credits, are retained by the parent company and regarded as an immediate gain for the year (in a year in which the Company show some profits, the parent company will then

bear a tax charge).

Non-deductible tax expenses:

The French tax consolidation group included the following companies in 2017:

In accordance with article 223 quater of the French general tax code, the financial statements for the financial year ended 31 January 2018 contain 81,522 euros of non-deductible expenses for income tax (article 39-4 of the French general tax code), but do not contain overhead costs, which are non-deductible for tax purposes (article 39-5 of the French general tax code).

• • • • • •

Neopost France;

Neopost Services;

Mail Finance;

Neopost Industrie S.A.;

Neopost Technologies S.A.;

Neopost Shipping.

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REGISTRATION DOCUMENT 2017 / NEOPOST