NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

31 January 2017

Breakdown by instrument category

Fair value through P&L

Available for sale assets

Loans and receivables/ Debts

Debts at amortized costs

Book value Fair value

Derivative instruments

Non-current financial assets

52.9

52.9

-

6.1

38.8

-

8.0

Lease receivables (a)

798.1

795.4

-

-

798.1

-

-

Other long term receivables

2.5

2.5

-

-

2.5

-

-

Receivables (b)

268.8

268.8

-

-

268.8

-

-

Other receivables (b)

8.8

8.8

-

-

8.8

-

-

Derivative financial instruments (c)

0.3

0.3

-

-

-

-

0.3

Cash and cash equivalents (d)

96.1

96.1

96.1

-

-

-

-

Assets

1,227.5 1,224.8

96.1

6.1 1,117.0

-

8.3

Financial debts and bank overdrafts (e)

859.1

874.1

131.1

-

-

728.0

-

Other financial debts

24.9

24.9

-

-

24.9

-

-

Other long-term debts

50.3

50.3

-

-

50.3

-

-

Accounts payable (b)

79.4

79.4

-

-

79.4

-

-

Other operating liabilities (b)

228.4

228.4

-

-

228.4

-

-

Derivative financial instruments (c)

0.9

0.9

-

-

-

-

0.9

Liabilities 0.9 Due to the large number of deals handled by the leasing entities, the Group did not perform an individual valuation for each deal. The (a) assumptions used are the following: average maturity of three years for the portfolio, yield curve ending on 31 January 2017 and constant exchange rate. The valuation is performed excluding credit spread. The British and American postage financing portfolio are comprised of very short-term maturities (less than a month) and renewable credits, the fair value considered is the same as that applied in the balance sheet. Historical cost valuation. (b) Valuation method described in note 11-4. (c) Valuation based on realizable value. (d) The fair value of the debt is the portion of the 2.50% Neopost bond that was swapped for 125 million euros. The swap and the debt are (e) recognized at their fair value as mentioned in note 11-4. Concerning the debt accounted for at amortized cost, the main amounts are broken down as follows: for all floating-rate debt described in note 11-2-6. The drawdown is performed on a one-month, three-month and six-month basis and with ▪ a variable rate (EURIBOR and USD LIBOR); there is no difference between the fair value and the value in the balance sheet which represents an amount of 322.1 million euros; concerning fixed rate debts, the fair value has been calculated from the yield curve as at 31 January 2017. The difference between the fair ▪ value and the value as appearing in the balance sheet is 15.0 million euros. Debt in foreign currencies was valued at constant exchange rates. 1,243.0 1,258.0 131.1 - 383.0 728.0

11-2

Financial debt analysis Accounting principles

11-2-1:

Interest-bearing loans

in the income statement over the life of the loan, using the effective interest rate method. Net financial debt Net financial debts include interest-bearing loans and interest payables, net of cash and cash equivalents.

Interest-bearing loans are initially recognized at their fair value less directly attributable transaction costs. After initial recognition, interest-bearing loans are measured at amortized cost: any difference between the nominal value (net of transaction costs) and the repayment value is taken

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REGISTRATION DOCUMENT 2017 / NEOPOST