QUADIENT - 2019 Universal Registration Document

6

FINANCIAL STATEMENTS Neopost S.A. statements of financial position

2020 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES IN ❚ FINANCIAL YEAR 2020 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2021

Notional value

USD GBP

CAD NOK

JPY

SEK CHF

DKK CZK SGD AUD

PLN

Projected financial assets

24.8 2.7 0.4 2.9 87.5

3.4 5.0 1.7

1.7

0.1

5.2

0.1

Foreign exchange contract assets

171.5 31.0 22.1

45.5 1,853.0 76.0 63.3 45.3 41.9

5.8 24.4

1.3

Total assets exposure

196.3 33.7 22.5 48.4 1,940.5 79.4 68.3 47.0 43.6

5.9 29.6

1.4

Projected financial liabilities

18.2

0.7 0.4 0.2

0.4 0.0 0.1

0.2

2.1

0.1

0.1

-

Foreign exchange contract liabilities

116.7 32.4 17.1

3.6 1,221.8 9.5 54.0 9.9 743.4 7.4

1.7

2.0

Total liabilities exposure

134.9 33.1

17.5

3.8 1,222.2

9.5 54.1

10.1

745.5

7.5

1.8

2.0

Net exposure before hedging

61.4 0.6 5.0 44.6 718.3 69.9 14.2 36.9 (701.9)

(1.6)

27.8 (0.6)

Hedging

(19.5)

-

(2.2)

(6.5) (530.0) (16.0)

(5.8) (11.0) 278.8

-

(6.0)

-

NET EXPOSURE AFTER HEDGING

41.9 0.6 2.8 38.1

188.3 53.9 8.4 25.9 (423.1)

(1.6)

21.8 (0.6)

The Group 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 tunnel only one of the two options is reported in the table above. The value of the commitment in these symmetric options is 11.5 million United States dollars sold, 0.8 million Canadian dollars sold, 215.0 million Japanese yen sold, 2.0 million Swedish krona sold and 100.0 million Czech krona purchased. The Group also makes use of asymmetric options tunnels. No asymmetric options tunnels is active as at 31 January 2020.

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).

INSTRUMENT DETAILS

The instruments in the portfolio have a maturity of less than twelve months at 31 January 2020. These instruments are listed below by type and by currency for the period to which they relate.

HEDGING INSTRUMENTS

The Group hedges its exchange rate risk using over-the-counter derivative instruments contracted with external counterparties.

2019 FINANCIAL YEAR – POSITIONS AND COMMITMENTS TO SUBSIDIARIES HEDGING ❚

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

Notional value – Cash flow hedging

USD

15.2

41.4

-

-

-

-

GBP

-

0.2

-

-

-

-

CAD

0.4

0.3

0.3

-

-

0.3

NOK

-

0.8

-

-

-

-

JPY

-

195.9

-

-

-

-

SEK

2.8

2.8

-

-

-

-

DKK

3.3

1.1

-

-

-

-

CZK

30.0

30.0

-

-

-

-

SGD

-

0.9

-

-

-

-

AUD

-

2.1

-

-

-

-

PLN

1.2

-

-

-

-

-

218

UNIVERSAL REGISTRATION DOCUMENT 2019