NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Consolidated financial statements

2018 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES IN FINANCIAL YEAR 2018 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2019

Notional value

USD GBP CAD NOK JPY SEK CHF DKK CZK SGD AUD PLN

Total assets

181.4 41.2 14.8 43.6 3,159.3 70.5 43.3 34.1 33.2 9.4 26.3 1.7

Total liabilities

127.5 28.7 10.2 3.1 875.1 9.5 39.1 6.6 475.5 9.7 1.5 3.1

Net exposure before hedging

53.9 12.5 4.6 40.5 2,284.2 61.0 4.2 27.5 (442.3) (0.3) 24.8 (1.4)

Hedging

(42.2) (7.0) (3.3) (18.5) (1,200.0) (29.5)

- (8.5) 140.0

- (13.0)

-

NET EXPOSURE AFTER HEDGING

11.7 5.5 1.3 22.0 1,084.2 31.5 4.2 19.0 (302.3) (0.3) 11.8 (1.4)

Hedging instruments The Neopost group hedges its exchange rate risk using over-the-counter derivative instruments contracted with external counterparties. 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 as at 31 January 2018. These instruments are listed below by type and by currency for the period to which they relate.

Neopost 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 collar 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, 2.0 million pounds sterling sold, 1.2 million Canadian dollars sold, 6.5 million Norwegian kroners sold, 550.0 million Japanese yen sold, 11.0 million Swedish kroners sold and 5.5 million Australian dollars sold. Neopost also makes use of asymmetric options tunnels. The asymmetric part of this kind of options is presented in the table above with a view to reflecting the Group’s maximum commitment. The asymmetric part by currency is as follows: 11.5 million United States dollars sold, 2.0 million pounds sterling sold, 1.0 million Canadian dollars sold, 6.5 million Norwegian kroners sold, 350.0 million Japanese yen sold, 11.0 million Swedish kroners sold and 4.0 million Australian dollars sold.

2017: ASSETS AND LIABILITIES HEDGING

Notional value –  Cash flow hedging

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

USD

-

19.2

2.0

-

-

4.0

GBP

0.5

0.5

-

-

-

-

CAD

1.9

0.5

-

-

-

-

JPY

-

751.6

100.0

-

-

150.0

SEK

-

0.8

-

-

-

-

CHF

10.9

-

-

-

-

-

CZK

122.1

-

-

-

-

-

SGD

-

0.6

-

-

-

-

150

REGISTRATION DOCUMENT 2017 / NEOPOST