QUADIENT - 2019 Universal Registration Document

6

FINANCIAL STATEMENTS Neopost S.A. statements of financial position

There is no more income from the employment and competitiveness tax credit ( Crédit d’Impôt pour la Compétitivité et l’Emploi – CICE ) coming from the tax consolidation because this measure does not exist anymore. It was recorded for 1.3 million euros as at 31 January 2019. For financial year 2019, the tax benefit coming from the tax consolidation is 6.4 million euros (5.5 million euros for 2018) and the tax charge resulting from the tax control is 0.5 million euros.

As at 31 January 2019, tax proceeds of 4.8 million euros was recorded, in respect of the claim related to the 3 % contribution on dividend distributions made by the Company between 2013 and 2017. Losses carried forward amount to 50.3 million euros as at 31 January 2020 after the increase of 22.9 million euros following the tax control. As at 31 January 2020, the Group tax result submitted to ordinary tax rate is a profit.

Net income amounts to 11.1 million euros (38.5 million euros as at 31 January 2019).

Income before tax Theoretical tax

Net income

Current income

5.2

3.2

8.4

Extraordinary Income (loss)

(0.5)

0.2

(0.3)

Sub-total

4.7

3.4

8.1

Tax credits offsetting

-

2,2

2.2

Tax control impact

-

0,5

0.5

Effect of tax consolidation

-

1,3

1.3

TOTAL

4.7

6.4

11.1

INFORMATION ON ASSOCIATED COMPANIES NOTE 12

Figures for associated companies break down as shown below:

Associated companies

31 January 2020

Majority stake

Minority stake

Financial assets

1,353.7

1,342.2

11.5

Receivables

262.6

262.6

-

Financial debts

0.6

0.6

-

Financial expenses

5.9

5.9

-

Financial income (interests)

22.8

22.8

-

Financial income (dividends)

75.6

73.5

2.1

RISK MANAGEMENT AND FINANCIAL INSTRUMENTS NOTE 13

The ANC no. 2015-05 regulation of 2 July 2015 regarding forward financial derivative instruments and hedging operations is applicable since 1 January 2017. The foreign exchange forward contracts and options outstanding as at 31 January are reassessed at that date. Unrealized gains or losses resulting from this revaluation are:

accounted for in compensation of unrealized gains ● or losses on assets or liabilities hedged by these instruments; deferred if these instruments have been allocated to ● operations related to the following year. The effects of interest rate hedges (swaps, forward rate agreements, caps, etc. ) are calculated using a prorata temporis over the contract’s length, and accounted for in interest expenses for the year.

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UNIVERSAL REGISTRATION DOCUMENT 2019