NEOPOST - 2018 Registration document

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Non-financial performance statement

Social, societal and environmental information

Answering to the issues of the last mile delivery and re-delivery

Product safety for users The Group is particularly vigilant as regards the safety of the products it places on the market and as regards compliance with European and international regulatory requirements. These requirements are taken into account during product development. Approval and qualification tests are first carried out internally before being confirmed by independent external laboratories. Externally conducted tests make it possible to ensure product safety. They mainly cover compliance with UL (" Underwriters Laboratories" ) requirements; Russian GOST-R regulatory requirements and EC requirements regarding in particular electromagnetic compatibility (directive 2004/108/EC), limiting the voltage used in electrical equipment (directive 2006/95/EC “Low voltage”) and the restriction of the use of certain hazardous substances (directive 2011/65/EC “RoHS”). Other external tests make it possible to check compliance with electromagnetic compatibility (EMC) requirements, with US " Federal Communications Commission" (FCC) requirements and with the Australian c-tick label guaranteeing low exposure to electromagnetic fields. Tests are also conducted on product sound emissions, on drop tests and on compliance with "Energy Star" requirements. "Energy Star" is a label created by the US "Environmental Protection Agency" (EPA) and recognized by the European Union. It sets out energy consumption criteria to improve the energy efficiency of office equipment. This efficiency depends on electricity consumption in use and on the existence of a sleep mode. The regulatory context regarding electrical and electronic equipment changes constantly at both the European and international level. The active participation by the Group in the professional organizations of the French Information Technology Industry Union (AFNUM) and the working meetings of the National Authority in France allows Neopost to follow these developments and to anticipate future ones. Among the regulatory texts with which the Group must comply, particular attention is paid to the RoHS and WEEE EU directives, the French decree on the use of nanomaterials (now applicable) and the REACH regulation. Measuring customer satisfaction Since the Group's culture is highly customer-focused, two annual satisfaction and loyalty surveys are conducted by the Group with thousands of Neopost customers. These surveys are conducted by phone in the Group’s main countries, working with an external specialist customer relations firm. The purpose of these surveys is to evaluate customer base trends regarding Mailing and Document Systems and to propose action plans to continue to satisfy customers as far as possible. In total more than 40 criteria are evaluated on a 1 to 5 satisfaction scale. The Group assesses the strengths and weaknesses, as well as their importance, in order to determine priority areas for improvement. Improvement plans are then prepared and managed both at Group level and at the level of business entities. These plans focus on two complementary areas: the product range and all customer-facing processes. According to the latest survey carried out in 2018, the rate remains relatively stable from one year to the next and more than 97% of customers were satisfied. In addition, on-the-spot surveys are conducted by the commercial companies to measure customers’ satisfaction in real time, to hear what they have to say about key processes and to respond quickly to any customer dissatisfaction.

The parcel lockers solution, developed by Neopost Shipping, offers an answer to the main issue of the carriers regarding last mile delivery. This solution allows to reduce the CO 2 emissions related to the re-delivery of parcels. NeopostLabs, a Neopost team dedicated to innovation In 2018, the NeopostLabs team established a new list with 10 trends, which it is seeking to develop and test in technological and commercial terms, looking for new opportunities for the Group. NeopostLabs is currently working on 29 experiments using artificial intelligence technology, virtual and augmented reality, machine learning, big data, blockchain and even IoT (Internet of Things). To ensure that its mission is fulfilled, NeopostLabs follows an innovation process allowing all the Group’s employees to generate ideas by encouraging a culture of innovation, by hosting innovation events, workshops, or by creating collaborative platforms or even partnerships with start-ups and universities. The selected ideas are studied in further depth and are tested. If they are conclusive, they go on the step of prototyping before being definitively transferred to one of the business units or to a third party (resale of ideas and patents). The Group ensures the quality, reliability and availability of the products and solutions delivered to customers. All the R&D, manufacturing and logistic sites of the Group are ISO 9001 certified. This means that from design to after-sales service, operating procedures are deployed and rigorous controls are applied in order to ensure a high level of product performance. Regarding franking machines, the Group has implemented a standard exchange program for some models in several European countries. This program offers the advantage of minimizing the failure of service provided to the customers by significantly reducing downtime of the equipment. When a machine is not working as it should, the customer calls the support service, which, after a quick technical diagnostic, initiates the next day delivery of a new machine to carry out a standard exchange. The defective product is returned to the factory in order to be remanufactured if possible. In such cases, the latest improvements are integrated and the machine is also updated before being returned to the customer’s location. Aware that its digital communication solutions and its parcel lockers solutions are at the heart of its customers’ value chain, the Group has implemented a strengthened monitoring of its IT infrastructures, required for their operation. For instance, Quadient’s delivered solutions are monitored 24 hours a day, 7 days a week. Automatic alerts are directly sent to the team in charge of incident management. In 2018, the availability of Saas applications delivered by Quadient was 99.5%. Major service disruption Reliability of products and availability of solutions and services

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REGISTRATION DOCUMENT 2018 / NEOPOST