NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

2018 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES IN FINANCIAL YEAR 2018 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2019

(Notional value)

USD GBP CAD NOK JPY SEK CHF DKK CZK SGD AUD PLN

Neopost S.A. projected financial assets

22.6 3.2 0.8 3.4 29.0

5.0 3.7 2.5 2.5 0.1 5.2 0.2

Foreign exchange contract assets

158.8 38.0 14.0 40.2 3,130.3 65.5 39.6 31.6 30.7 9.2 21.1 1.6 181.4 41.2 14.8 43.6 3,159.3 70.5 43.3 34.1 33.2 9.3 26.3 1.8

Total assets

Neopost S.A. projected financial liabilities

15.0 1.0 0.1 0.1

0.1

0.1 0.3 0.1 0.1 0.0 0.3 0.0

Foreign exchange contract liabilities

112.5 27.8 10.1 3.0 875.1

9.5 38.8 6.4 475.4 9.7 1.2 3.1

Total liabilities

127.5 28.7 10.2 3.1 875.2 9.5 39.1 6.5 475.5 9.7 1.5 3.1

Net exposure before  hedging Neopost S.A. hedging NET EXPOSURE AFTER HEDGING

53.8 12.4 4.6 40.5 2,284.1 61.0 4.2 27.6 (442.3) (0.4) 24.8 (1.3)

(42.2) (7.0) (3.3) (18.5) (1,200.0) (29.5)

- (8.5) 140.0

- (13.0)

-

11.7 5.4 1.3 22.0 1,084.1 31.5 4.2 19.1 (302.3) (0.4) 11.8 (1.3)

Hedging instruments The Neopost group hedges its exchange rate risk using over-the-counter derivative instruments contracted with external counterparties. The derivative instruments used by the treasury department in its hedging strategies are as follows: firm derivatives such as forward currency purchases and • sales; plain vanilla options such as puts and calls; • second generation options (knock-in or knock-out barrier • options).

Neopost uses symmetric options tunnels in particular. These option instruments are unlikely to be exercised in a reciprocal manner in terms of the spot exchange rate or expiry date. As a result, for each collar only one of the two options is reported in the table above. The value of the commitment in these symmetric options was 11.5 million United States dollars sold, 2.0 million pounds sterling sold, 1.2 million Canadian dollars sold, 6.5 million Norwegian kroners sold, 550.0 million Japanese yen, 11.0 million Swedish kroners sold and 5.5 million Australian dollars sold. Neopost also makes use of asymmetric options tunnels. The asymmetric part of this kind of options is presented in the table above with a view to reflecting the Group’s maximum commitment. The asymmetric part by currency is as follows: 11.5 million United States dollars sold, 2.0 million pounds sterling sold, 1.0 million Canadian dollars sold, 6.5 million Norwegian kroners sold, 350.0 million Japanese yen, 11.0 million Swedish kroners sold and 4.0 million Australian dollars sold.

187

REGISTRATION DOCUMENT 2017 / NEOPOST