NEOPOST - 2018 Registration document

1

Neopost group activity

Key figures

Key figures

Sales

Current operating margin (1)

Net margin

18.2%

8.4%

+ 0.2%

organically compared to 2017

of sales

of sales

Sales in 2018 came to 1,092 million euros, down (1.8)% compared with 2017, and up 0.1% at constant exchange rates. Organic growth was 0.2%. 2018 current operating margin before acquisition-related expense was 18.2% of sales, stable versus 2017 in particular thanks to the icon Systemhaus’ earn-out reversal, amounting to €7.5 million. Excluding the earn-out reversal, the current operating margin stood at 17.6% of sales. (1)

As part of its new strategy “Back to Growth”, presented in January 2019, the Group decided to set its annual pay-out ratio at a minimum of 20% of the Group attributable net income with the minimum annual dividend set at an absolute floor of 0.50 euro per share. 2018 dividend for an amount of 0.53 euro per share, will be paid in cash and in one instalment, on 6 August 2019, subject to approval by the Ordinary General Meeting of shareholders to be held on 28 June 2019.

12% Enterprise Digital Solutions 5% Neopost Shipping

Sales by division

The Enterprise Digital Solutions division posted a +10.1% increase in sales at constant exchange rates. Restated for scope effects of the divestment of DMTI Spatial in July 2017, sales increase 11.6% organically. Sales of the Neopost Shipping division increased organically by +16.6%. Sales of the SME division were down organically by (2.1)%.

2018

83% SME Solutions

Sales by region

In North America, sales stood at 498 million euros, up 1.2% organically. In Europe, sales decreased organically by (0.3)%, to reach 529 million euros. Sales in Asia-Pacific went down by (2.5)% organically and came at 86 million euros.

8% Rest of the world

48% Europe

44% North America

2018

Current operating margin before acquisition-related expenses = current operating income before acquisition-related expense/sales. (1)

6

REGISTRATION DOCUMENT 2018 / NEOPOST