NEOPOST_REGISTRATION_DOCUMENT_2017

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Corporate social responsibility

Social, societal and environmental information

Relations with shareholders, financial partners  and extra-financial rating agencies Neopost provides its shareholders with transparent, regular and reliable information and maintains ongoing communication and a regular dialogue with them. This corporate social responsibility report is included in the Group’s registration document in order to communicate openly on its approach to sustainable development. Pursuant to French legislation, each year Neopost undertakes to communicate on indicators relevant to its activity in the areas of employee-related information, environmental information and information on corporate social commitments. Furthermore, in the interests of transparency, Neopost regularly responds to questionnaires from extra-financial rating agencies, the results of which are presented in the preamble. Acting with local communities Overview of sponsorship and volunteering  actions In the various countries where it is present, the Group would like to support local communities and territories in a cooperative, civically minded manner. In January 2017, 68% of the Group's entities declared having undertaken sponsorship and volunteering actions at the local level to support solidarity initiatives. As such, 136,083 euros was collected for general interest projects in various sectors, notably health and education, which regularly appear among the many sponsorship actions identified via a qualitative questionnaire sent to the various countries. In addition, the Group's employees spent 2,969 hours volunteering, and some subsidiaries, such as Neopost USA, even give their employees time to support charitable projects. At the same time, collections of clothing and food were organized in the United States and Europe for the end-of-year holiday season. In France, Neopost S.A. has continued its partnership with the Make a Wish Foundation, whose mission is to fulfill the dreams of children with serious illnesses or disabilities with a donation of 5,000 euros made in the framework of the annual gala organized by the association. As a faithful partner of the association since 2007, Neopost France has been a loyal partner of SOS Villages d’enfants (SOS Children’s Villages) through profit-sharing. In 2017, Neopost renewed its commitment alongside the association by pledging to donate 10 euros for any signed Neotouch contract to contribute to the financing of renovation work in various reception areas. In 2017, 20,000 euros was donated and, since 2007, more than 255,000 euros has been raised for SOS Children's Villages. Founded in 1956, the organization allows orphaned children that have been abandoned or separated from their parents, to have the chance to grow up together in Partnership & sponsorship 68% Of Group companies support local communities in 2017

Since Neopost has production facilities in Europe (France, the Netherlands and the United Kingdom), and in Asia (China and Malaysia), production purchasing takes place mainly in Asia (41%) and Europe (39%), followed by the United States (15%) and France (5%). 51% of this amount is used for the purchase of generic products from our OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) partners. The purchase of raw materials, parts, components and sub-assemblies from tier 2 suppliers accounts for 27% of purchases. Of this amount, the purchase of ink cartridges for our mailing systems represents 22%. The purchase of generic products represents between 75% and 80% of the products manufactured by the Group. OEM partners are primarily located in Asia (China and Malaysia). In collaboration with our engineering teams, they produce products designed by our R&D teams on an industrial scale and then oversee their production. They operate independently even though Neopost can, from time to time, impose a tier 2 supplier of its choice (parts, components and sub-assembly). Our ODM partners are also located in Asia (China), the United States and Europe (Austria). They design, manufacture and produce their products for Neopost, according to approved specifications. Purchases from tier 2 suppliers are intended for the Group’s production facilities. Despite the limitations that may be involved, the Group endeavors to secure local supply sources (from the same country or at least the same continent) for its parts, components and sub-assemblies, whenever possible, including for those supplying our OEM partners. The Group has very little recourse to subcontracting. The Group only makes recourse to subcontracting to meet peak production requirements or the occasional needs of a specific industrial process. Relations with employees Neopost also established a communication department that supports, among other things, internal communication of management to employees. This communication comes through several categories of information which are: appointments and change in organization, acquisitions and partnerships, business news related to the activity of the Group, people news, news related to the Neopost community and finally more communication detailing particular technical points which require more precise explanation. In addition, a great number of subsidiaries have their own additional internal newsletter. In order to maintain and to strengthen the regular dialogue with their employees, Neopost companies have put in place, at the local level, numerous communication tools, such as team meetings, entity communication meetings, and internal newsletters. In addition, an annual innovation day is organized in Bagneux and a laboratory allows employees to demonstrate product prototypes and models.

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REGISTRATION DOCUMENT 2017 / NEOPOST