QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Neopost S.A. statements of financial position

NOTE 2

MAIN ACCOUNTING PRINCIPLES

The financial statements closed on 31 January 2020 are prepared in accordance with the measures of the French commercial code (articles L. 123-12 to L.123-28), of the French accounting rules authority (ANC) regulation no. 2014-03 dated 05/06/2014 modified by the ANC regulation no. 2016-07 dated 26/12/2016 and by the ANC regulation no. 2019-07 dated 10/12/2019 related to the French chart of accounts and the French accounting regulatory committee ( Comité de la Réglementation Comptable – CRC) regulations. The provisions regarding financial derivative instruments have been supplemented by 2015-05 ANC regulation of 2 July 2015. The following rules are applied in accordance with the prudence principle: business continuity; ●

independence of financial years; ● continuity of accounting methods from one year to ● another, and in accordance with the general rules of establishment and presentation of annual financial statements. The basic method for valuing accounting entries is the historical cost method. Since 1 February 2005, the Company applied regulations relating to the definition, measurement and recognition of assets (CRC regulation 04-06) and amortization or depreciation (CRC regulation 02-10). Concerning, the borrowings issue costs the Company chose to apply the reference method, i.e. the spread of issue costs over the contract duration.

NOTE 3

INTANGIBLE AND TANGIBLE FIXED ASSETS

Intangible and tangible fixed assets are valued at their acquisition cost (purchase price plus related expenses). Assets are amortized on a straight-line basis according to their useful lives. The most common amortization periods are as follows: IT implementation projects: five or seven years; ●

software: five years; ● fixtures: ten years; ● office furniture and equipment: four, five or eight years. ●

6

Intangible fixed assets

Tangible fixed assets

Net book value at 31 January 2018

32.8

0.0

Acquisitions

(10.9)

-

Change in amortization and depreciation

(21.8)

-

Net book value at 31 January 2019

0.1

0.0

Net disposals

-

0.2

Change in amortization and depreciation

-

-

NET BOOK VALUE AT 31 JANUARY 2020

0.1

0.2

As at 31 January 2019, the expenses capitalized in regard an amount of 21.7 million euros, due to the cancellation of to a project of common IT tools roll-out in Europe were the project.

sold to one of the Group’s subsidiary for a net book value of 32.6 million euros and an exceptional depreciation of the corresponding intangible fixed assets was recorded for

No exceptional depreciation is recorded this year.

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UNIVERSAL REGISTRATION DOCUMENT 2019