NEOPOST_REGISTRATION_DOCUMENT_2017

5

Financial statements

Parent company statements of financial position

Treasury shares The number of treasury shares at the end of January 2018 is 163,788 of which 153,027 are held for the liquidity contract and 10,761 with the aim of fulfilling the obligations of the stock-option and free share plans attributed to employees and directors of the Group.

Under the liquidity contract, shares cannot be sold freely except if the contract is cancelled. This contract was signed with Exane BNP Paribas on 2 November 2005 for one year and is renewable by tacit agreement. The amount allocated to this contract was initially 8 million euros. The purpose is to reduce excessive volatility of the Neopost shares and to improve liquidity.

The transactions in 2017 are the following:

31 January 2017

Bought

Sold

Transferred

31 January 2018 Number Amount

Number Amount Number Amount

Number Amount Number Amount

Liquidity contract

108,167

3.2 672,605

23.3 (627,645)

(21.9)

-

- 153,027

4.3

Coverage of obligations

4,268

0.1 20,000 3.3 692,605

0.8

-

- (13,507)

(0.5)

10,761

04

TOTAL

112,435

23.8 (627,745) (21.9) (13,507)

(0.5) 163,788

4.7

Note 7

Transactions in foreign currencies

A translation adjustment is determined for each asset or liability denominated in a foreign currency, at the closing exchange rate. Translation differences are offset between assets and liabilities denominated in one currency and having the same maturity.

Assets and liabilities translation differences are offset between translation adjustment asset came out at 12.0 million euros hedging financial instruments (exchange rate futures) and the and the translation adjustment liability at 36.4 million euros. appropriate receivables and payables. This offset amounted to An allowance equivalent to the amount of foreign exchange 15.3 million euros at 31 January 2018. After offset, the assets is recorded.

Note 8

Shareholders’ equity

Capital 8-1 At 31 January 2018, the share capital totaled 34.6 million euros divided into 34,562,912 ordinary shares with a par value of 1 euro each, the share capital is fully released. There was no change during 2017. 8-2 Additional paid-in capital represents the net amount received by the Company in excess of the par value on issuance, fully distributable. At 31 January 2018, additional paid-in capital amounted to 52.9 million euros. There was no change in the 2017. Additional paid-in capital

Reserves, retained earnings 8-3 This item mainly comprises cumulated net income over the years and dividend payments. 8-4 Consolidated retained earnings before appropriation of 2017 net income of the parent company amounted to 246.9 million euros as at 31 January 2018 compared with 25.4 million euros as at 31 January 2017. A dividend of 1.70 euro will be paid in relation to 2017 financial results of which 0.80 euro was prepaid on 6 February 2018. The dividend relative to 2016 fiscal year was 1.70 euro of which 0.80 euro was prepaid on 7 February 2017. Dividend per share

180

REGISTRATION DOCUMENT 2017 / NEOPOST