QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Neopost S.A. statements of financial position

The management fees contracts and brand name contracts generate an income of 30.6 million euros as at 31 January 2020 compared with 24.1 million euros as at 31 January 2019.

11-2: Financial income

Financial income amounts to 9.5 million euros compared with 50.5 million euros a year before and it breaks down as follows:

31 January 2020

31 January 2019

Interest expenses on external borrowings

(41.3)

(34.8)

Net income on internal loans and borrowings

17.0

19.8

Dividends received

75.6

116.6

Revenue from disposals of securities

0.2

0.1

Other financial products

2.2

2.3

Net gain on foreign exchange and swaps

37.1

(6.5)

(Provision)/reversal for losses on foreign exchange

(6.2)

8.8

(Provision)/reversal of impairment on short-term receivables

(12.6)

(9.4)

(Provision)/reversal of impairment on investments in affiliates

(63.8)

(20.5)

(Provision)/reversal of impairment on loans

1.1

(26.0)

(Provision)/reversal of impairment on treasury shares

0.2

0.1

TOTAL

9.5

50.5

6

11-3: Extraordinary income

Neopost S.A.’s extraordinary loss amounts to 0.5 million euros compared with a loss of 22.2 million euros as at 31 January 2019. Treasury shares disposals under the liquidity contract generate extraordinary income from capital transactions for 0.2 million euros (0.7 million euros at 31 January 2019) and extraordinary expenses from capital transactions for 0.7 million euros (1.2 million euros at 31 January 2019).

As at 31 January 2019, the expenses capitalized in regard to a project of common IT tools roll-out in Europe were 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 an amount of 21.7 million euros. As at 31 January 2020, no exceptional depreciation is recorded.

11-4: Income tax

Neopost S.A. is the parent company of an integrated consolidation. The tax is thus calculated on the tax group under the terms of article 223A of the French Company’s own taxable income. The tax savings general tax code. In this context, Neopost S.A. is only realized by the Group, through losses, adjustments or liable for income tax due by its subsidiaries with a view tax credits, are retained by the parent company and to determining the whole Group’s earnings. The tax regarded as an immediate gain for the year (in a year consolidation agreement used in the Group is based on in which the Company show some profits, the parent the principle of neutrality and plan that the tax burden company will then bear a tax charge). is borne by the Company as in the absence of tax

Non-deductible tax expenses: In accordance with article 223 quater of the French general tax code, the financial statements for the financial year ended the 31 January 2020 contain 84,050 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).

The French tax consolidation group includes the following companies in 2019: Neopost France; ● Neopost Services; ● Mail Finance; ● Neopost Industrie S.A.; ● Neopost Technologies S.A.; ● Neopost Shipping. ●

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UNIVERSAL REGISTRATION DOCUMENT 2019