NEOPOST_REGISTRATION_DOCUMENT_2017

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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 ranked third in the world. In 2012, Neopost acquired GMC Software AG, parent company of the group GMC Software Technology, leader in the field of 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 2018 as approved by the European Union are available on the European Commission website: http://ec.europa.eu/internal_market/accounting/ ias_fr.htm#adopted-commission. Standards, amendments and interpretation adopted by the European Union that are mandatory for financial years beginning on or after 1 February 2017: amendments to IAS 7: disclosure initiative; • amendments to IAS 12: recognition of deferred tax assets • on unrealized losses; Accounting policies Note 2

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% 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. The Group divested its SME Solution distribution subsidiaries in Indonesia, Malaysia, Singapore and Thailand and its Canadian subsidiary DMTI Spatial from EDS division. These assets disposals have led to an expense of 11.3 million euros. Temando Neopost subscribed 7 million Australian dollars to a capital increase carried out by Temando in the first quarter 2017, thus increasing its stake from 55% to 65%. The Group revised the business plan of Temando and acquired this latter's remaining minority interests in September 2017. Neopost now owns 100% of the company. As a consequence, the earn-out debt associated to Temando was totally reversed for an amount of 28.6 million euros. The goodwill recognized at the time of the acquisition was partly depreciated by 22.9 million euros. Main events of the period 1-2: Assets disposals

These standards applicable to Neopost for financial year starting on 1 February 2017 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 2018 and not early adopted by the Group:

IFRS 9: financial instruments; • IFRS 15: revenue from contracts with customers. •

Standards, amendments and interpretations published by the IASB but not yet adopted by the European Union: IFRS 14: regulatory deferral accounts; • IFRS 16: leases; • IFRIC 22: Foreign currency transactions and advance • consideration;

annual improvements 2014-2016 cycle. •

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REGISTRATION DOCUMENT 2017 / NEOPOST