NEOPOST - 2018 Registration document

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Financial statements

Consolidated financial statements

Note 1

Presentation of the Neopost group and its consolidated

financial statements

Neopost is a global leader in digital communications, shipping and mail solutions. Its mission is to help companies improve the way they manage interactions with their clients and partners. Neopost provides the most advanced solutions for physical mail processing (mailing systems and folders-inserters), digital communications management (Customer Communications management and Data Quality applications), and supply chain and e-commerce process optimization (from point of sale to delivery, including associated tracking services). The term “Neopost S.A.” refers to the parent company (excluding consolidated subsidiaries), which is listed and registered in France, while “Neopost” and “the Group” refer to the economic group formed by the parent company and its consolidated subsidiaries. The parent company’s head office is located at 42-46 avenue Aristide Briand, 92220 Bagneux (France). Neopost S.A. shares are listed on compartment A of Euronext Paris and are included on the SBF 120 index. Neopost was created in 1992 through a Leveraged Buy-Out (LBO) of Alcatel’s mail processing equipment division. A second LBO took place in 1997. In February 1999, the Group was listed on the Paris stock exchange. Since then, Neopost has made acquisitions of various sizes. In 2002, Neopost acquired Ascom Hasler – the mailing systems division of the Swiss company Ascom – which at the time ranked third in the world. In 2009, Neopost acquired the company Satori Software. In 2012, Neopost acquired GMC Software AG, parent company of the group GMC Software Technology, leader in the field of customer communications management and Human Inference, a specialist in master data management. In 2013, Neopost acquired DMTI Spatial, the leading Canadian provider of location-based data quality solutions. In 2014, Neopost acquired Proship, one of the largest providers of multi-carrier parcel shipping solutions. In 2015, Neopost acquired a 55% History 1-1: Accounting standards applied 2-1: The consolidated financial statements comply with the international accounting standards (IFRS: International Financial Reporting Standards) issued by the IASB (International Accounting Standards Board). The IFRS applicable as at 31 January 2019 as approved by the European Union are available on the European Commission website. Standards, amendments and interpretation adopted by the European Union that are mandatory for financial years beginning on or after 1 February 2018: IFRS 9: Financial instruments; • IFRS 15: Revenue from contracts with customers. • Accounting principles Note 2

stake in Temando Holdings Pty Ltd, an Australian company that provides logistic solutions to the e-commerce sector. In 2016, Neopost acquired icon Systemhaus GmbH, German leader in customer communications management solutions, operating mainly in Germany and Austria. In 2017, the Group divested its distribution subsidiaries in Indonesia, Malaysia, Singapore and Thailand and its subsidiary DMTI Spatial (EDS division). Neopost also acquired Temando’s remaining minority interests in September 2017 and now owns 100% of the company. On 22 January 2019, Neopost acquired 100% of the company Parcel Pending Inc., leader in the american parcel locker market and the main supplier of residential, commercial, retail, and universities in the United States and Canada. Quadient Data USA On 28 January 2019, Neopost sold its 100% stake in the company Quadient Data USA (former Satori Software), one of the leaders in address quality solutions in the United States. Temando An impairment was recorded in 2018 on Temando's goodwill, already partly written down in 2017. The goodwill recognized on the acquisition of Temando is fully depreciated as at 31 January 2019. Assets held for sale On 8 February 2019, Neopost announced the disposal of Quadient Data Netherlands BV (former Human Inference), a leading data processing solutions provider. As of 31 January 2019, the assets and liabilities of the two legal entities sold have been disclosed as assets held for sale in compliance with IFRS 5. Main events of the period 1-2: Parcel Pending

These standards applicable to Neopost for financial year starting on 1 February 2018 had no significant impact on the financial statements. Standards, amendments and interpretations adopted by the European Union and that are mandatory for financial years beginning after 1 February 2019 and not early adopted by the Group: • IFRIC 23: Uncertainty over income tax treatments; • Amendments to IAS 19: Plan amendment, curtailment or • settlement. IFRS 16: Leases;

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REGISTRATION DOCUMENT 2018 / NEOPOST