NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

Note 3

Intangible fixed assets and tangible fixed assets

IT implementation projects: five or seven years; • patent & software: five years; • fixtures: ten years; • office furniture and equipment: four, five or eight years. •

Intangible fixed assets and tangible fixed assets are valued at cost (purchase price plus related expenses) Assets are amortized on a straight-line basis according to their useful lives.

The most common amortization periods are as follows:

Intangible fixed assets

Tangible fixed assets

Net book value at 31 January 2016

38.6

0.1

Acquisitions

5.1

0.0

Amortization

(2.8)

(0.0)

Net book value at 31 January 2017

40.9

0.1

Acquisitions

0.5

0.0

Amortization

(8.6)

(0.1)

NET BOOK VALUE AT 31 JANUARY 2018

32.8

0.0

An exceptional amortization charge on intangible fixed assets capitalized in respect of the implementation of the Inéo platform in the amount of (5.7) million euros was recognized in the accounts on 31 January 2018, due to the abandonment of the project.

Note 4

Financial assets

Financial assets are valued at their acquisition cost (purchase price plus related expenses) or at their contribution value. An impairment test is carried out at least once a year. The Group projects future cash flows. These cash flows are based on revenue and operating income growth assumptions over five years. The valuation of majority

stakes is reviewed every year. The discounting rate is the weighted average cost of capital after tax to which a specific risk premium might be added. The deposit account opened at Exane BNP Paribas for the liquidity contract, which has investments in money market funds, falls into that category.

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REGISTRATION DOCUMENT 2017 / NEOPOST