NEOPOST_REGISTRATION_DOCUMENT_2017

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Neopost group activity

Activity

Packcity Packcity intelligent parcel lockers is an automated locker system that securely stores packages for easy consumer retrieval and returns if need be. Automated parcel lockers eliminates the need for multiple deliveries and re-delivery attempts and reduces the risk of lost packages, hence respecting delivery deadlines and lowering carbon emissions.

CVP-500 The automated packing solution CVP-500 addresses the specific needs of e-commerce. The system builds fit-to-size packages that reduce package volume up to 50%, saving on cardboard consumption and eliminating the need for void fill as well as providing significant savings in transportation costs.

SME Solutions

The SME Solutions division encompasses the legacy business of the Groupe related to mail solutions and graphics activities as well as the new activities in digital communications and shipping solutions. Market The size of the mail solutions' market is estimated to be around 3 billion US dollars (1) of sales per year. Neopost is ranked number 2 worldwide on this market, with a market share of 24% (2) of the installed base consisting of about 2.0 (2) million franking machines. Its two main competitors are Pitney Bowes and Francotyp Postalia with market shares of 61% and 11% (2) respectively. These market shares are nearly identical to those of the year before. Neopost, nonetheless, captures a growing part of the market revenue every year. More than 80% of the worldwide installed base of mailing systems is located in Canada (5%), France (10%), Germany (8%), the United Kingdom (11%) and the United States (51%). Customers SME Solutions’ customers are mainly small and medium sized enterprises across all industry sectors. Postal authorities’ role Postal authorities govern production, distribution and maintenance of franking machines. Mail Solutions Neopost supplies equipment, software and services to cover all steps in the incoming and outgoing mail handling chain. It provides important advice and training in organising mailroom, according to each customer’s particular needs. Neopost offers a competitive range of folders/inserters for the office, mailroom and mail centre segments. These systems, supplemented with software to interface with databases, make it possible to publish, prepare for insertion, combine and route

documents (pay slips, invoices, marketing mail shots). The Group also offers maintenance on these systems. Since these systems are connected to the Internet, the maintenance can be performed remotely. Neopost believes he is the world’s leading manufacturer of folders/inserters for office and mailroom. Furthermore, Neopost offers mailing systems which combine franking machines, franking management software solutions, accessories like postal scales, ink cartridges and other supplies to operate them. Neopost offers maintenance of its equipment (possibly remote) and the update of postal tarifs. With an installed base of around 480,000 franking machines, i.e. about 24% of the total installed base, Neopost is the number two worldwide supplier of franking machines. Finally, Neopost markets customised financing solutions for all equipment and services which it sells as well as long-term rentals in countries where regulation makes it mandatory, i.e. France for the entire franking machine, the United States and Canada for the meter. The Group also has a financial service called postage financing. Graphic activities Neopost distributes also a wide range of equipment for print finishing: guillotines, binding machines, laminating machines, paper folding machines for any type of format. These graphics solutions are available primarily in the Nordic countries and in Australia. Digital & Shipping Solutions Software developed by the two divisions EDS and Neopost Shipping are adapted to the requirements of small and medium sized enterprises and are marketed in a client server mode or a SaaS mode (Software as a Service) using the cloud. Neopost also call upon partners in order to create specific solutions like hybrid mail solutions.

Neopost estimates. (1) Postal statistics and Neopost estimates as at end 2017. (2)

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REGISTRATION DOCUMENT 2017 / NEOPOST