NEOPOST_REGISTRATION_DOCUMENT_2017

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Management Report

Risk factors

Dividend

The Board of Directors will submit its proposed dividend of 1.70 euro per share in respect of fiscal year 2017, the same amount as for fiscal year 2016, for the approval of the Annual General Meeting on 29 June 2018. If approved, the balance of 0.90 euro per share will be paid on 7 August 2018, following

the payment of an interim dividend of 0.80 euro per share on 6 February 2018. The final 2017 dividend will be paid entirely

in cash, as was the interim dividend.

Date (a) of the interim  dividend

Amount  of the interim  dividend

Date (a) of the balance  of the dividend

Amount  of the balance  of the dividend

Amount  of the full year  dividend

2017

06/02/2018

EUR 0.80

07/08/2018

EUR 0.90

EUR 1.70

2016

07/02/2017

EUR 0.80

08/08/2017

EUR 0.90

EUR 1.70

2015

09/02/2016

EUR 0.80

09/08/2016

EUR 0.90

EUR 1.70

2014

10/02/2015

EUR 1.80

06/08/2015

EUR 2.10

EUR 3.90

Payment date. (a)

Share buyback program

A share buyback program involving a maximum of 10% of the issued share capital at a maximum purchase price of 50 euros will be presented for approval to the Annual General Meeting to be held on 29 June 2018.

Risk factors

Risk assessment and internal control

Risk Factors Risk assessment

The Group has implemented a mapping process for its risks. The risk map is drawn up for a four-year period and updated in 2010, 2014 and 2017 under the supervision of the head of internal control. The aim is to update and extend the existing risk map. This is done by holding discussions with key Group managers and subsidiary management teams (selection of the 20 top managers). A list of risks classified by theme is then drawn up and rated by the persons interviewed, based on two criteria: impact and likelihood. The risk map is then presented to the Chairman & CEO, the audit committee and other relevant key personnel. A number of operational action plans were introduced across the Group, overseen by clearly identified individuals and monitored on a regular basis at the highest level. In addition to the review carried out by the audit committee at the end of March 2018, risks are reviewed by the Board of directors before taking any major decision (new acquisitions, restructuring, credit allocation, etc.) and a status report is produced in September. Risks are discussed by the Board from

a Group-wide perspective when the three-year plan is drawn up, during which: the Chief Executive Officer presents market conditions • (postal regulations, market trends, competition); the Chief Financial and Legal Officer presents the Group • strategy and financial objectives (by country, business line, etc.). Risks are also assessed as part of the preparation and presentation of the budget. In addition, the risks and opportunities related to the Group’s external environment are analyzed every year during preparation of the three-year strategic plan. As part of the Group’s decentralized organization, the directors of operating entities are responsible for identifying and assessing the risks associated with the activities they supervise. The results of their assessments are sent to general management and reviewed and discussed during operational reviews. Highlighting Red Flags risk areas is always part of the process.

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REGISTRATION DOCUMENT 2017 / NEOPOST