NEOPOST - 2018 Registration document

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Non-financial performance statement

Social, societal and environmental information

Building trust and customer satisfaction by providing safe innovative, and sustainable solutions and services

Customer satisfaction, innovation, reliability and availability and solutions and services safety are part of the Group’s main challenges in relation to customers’ and partners’ expectations. These challenges are addressed from the design of solutions and services offers and are translated into ambitious objectives which are regularly monitored. Several indicators are monitored by the teams in charge of customer support and products and services quality. An example could be the monitoring of the changes to BVPY (Breakdown Visit Per Year), an indicator related to the reliability of products or even the OBF (out of box failure), which reflects the malfunctions that appear during the installation of products. Other indicators monitored by the R&D and IT teams measures the quality of

digital solutions, such as the availability rate of servers and applications and the quality of the connections and their response time.

Innovating and designing sustainable products

Each year the Group invests between 4% and 5% of its revenue in innovation and research and development. Among the leading key trends for innovation wwhwich will have the largest impact in the coming years are artificial intelligence, virtual and augmented reality or even machine learning technology.

Initiatives

Results

Organization of several innovation workshops with partners each year. • The "Hype innovation"'s regional forum was hosted by Neopost at its

Innovation with and for partners

headquarters in Bagneux allowing experts to share their knowledge and practices NeoShowcase creates an immersive 3D experience for customers in order to • visualize a machine like the CVP-500 in a real environment without having to move it NeoEvent helps to manage conferences, NeoMeetingRooms to book rooms online, • NeoBookmarks to create, organize and share bookmarks within an organization Innovation culture disseminated among employees Organization of internal workshops and uploading documentation on Intranet to • raise employees' awareness of innovation Neopost encourages employees from all teams and geographical areas •

to share their ideas and supports new patent applications. Each year, the best patents registered the previous year are valued and presented during the “Patent Awards” ceremony As in 2017, the Group invested 56.9 million euros in innovation and R&D •

Amount of investments in innovation and R&D

Pack Experts’ Innovation Award: as part of Neopost • Shipping’s participation in the ALL4PACK exhibition, the CVP-500 system was chosen among 42 innovations. Originally, 250 applications were submitted by the exhibitors, and a panel from the specialized international press performed a rigorous selection process, eliminating 208. The 42 successful innovations were exhibited at the PACK INNOVATION space for the length of the trade show. And, among these innovations, nine were singled out by the Pack Experts Committee to receive the 2016 innovation awards, including Neopost Shipping's CVP-500 solution. The panel’s verdict was unanimous: “The right packaging to meet the needs of e-commerce and designed for all of supply chain, through to the end customer”; 2016 Green Supply Chain Award: this award recognizes • companies which make sustainability one of their strategic priorities and which work tirelessly to obtain quantifiable environmental results for their own operations and supply chain… But the award also recognizes providers of the supply chain solutions and services that assist customers in conducting quantifiable sustainable development activities.

Products' ecodesign In order to reduce the impact of its products throughout their life cycle, Neopost actively and successfully implemented an ecodesign policy as of 2006, which has now become an integral part of the Group’s CSR strategy. Today, all new franking machines and folders/inserter ranges benefit from this ecodesign approach. Shipping innovation Forever driven by innovation, the Group has designed and developed an automated packaging solution that makes made-to-measure parcels in real-time. Beyond its productivity performances, this solution named CVP-500, saves up to 20% on packaging materials and reduces the volume of parcels thus produced by 50%. In 2016, Neopost stood out among logistics and packaging professionals by obtaining three prestigious prizes in France and the US: Stratégies Logistique de l’Innovation Durable (Logistics • Strategies in Sustainable Innovation) awards companies in the transport, logistics and supply chain sectors for accomplishing outstanding and innovative achievements in terms of the environment, sustainable development and CSR;

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REGISTRATION DOCUMENT 2018 / NEOPOST