NEOPOST_REGISTRATION_DOCUMENT_2017

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Financial statements

Consolidated financial statements

Note 3

Scope and principles of consolidation

3-1: The Group’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the country of operation. Financial statements of foreign companies have been restated to be compliant with Neopost group's accounting principles. The consolidated balance sheet incorporates all items of assets and liabilities along with the results of consolidated companies. Intra-Group transactions and profits relating to these operations as well as intra-Group capital gains are eliminated. Subsidiaries controlled directly by the parent company or indirectly through other subsidiaries are consolidated using the full consolidation method. Stakes in associated companies over which the investor exerts significant influence are consolidated using the equity method. Significant influence is assumed when the investor controls directly or indirectly through subsidiaries 20% or more of the voting rights in the company in question. of consolidation The consolidated financial statements include the financial statements of Neopost S.A. and its subsidiaries. The subsidiaries are consolidated as from the date on which control is acquired by the Group and until the date on which control is transferred outside the Group. Control is the power to direct a company’s financial and operational policies in order to derive profit from its activities. Changes in the scope of consolidation for financial year 2017 are as follows: Neopost divested the Neosys companies in Singapore, • Thailand, Indonesia and Malaysia on 23 March 2017; The company Afterprint AS was merged into the company • Neopost Norge AS on 31 March 2017; Changes in the scope 3-2:

Accounting policies relating to the scope of consolidation

The companies Neopost Holding Inc and Priority Mailing • Systems LLC were merged into the company Neopost USA Inc on 31 May 2017; Neopost sold the company DMTI Spatial on 11 July 2017; • Neopost USA Inc acquired the company Claritus Inc on • 11 August 2017, fully consolidated; The company PSB Postsysteme GmbH was merged into the • company Neopost GmbH & Co. KG on 29 November 2017; The company Hans Hoepfner Büromaschinen GmbH was • merged into the company Neopost GmbH & Co. KG on 22 December 2017. Information on related parties Neopost owns a 35% stake in Docapost BPO IS and a 24% stake in AMS Investissement. The transactions with these companies, consolidated using the equity method, are not significant. Neopost also holds a 3.14% stake in X’Ange Capital, a 7.39% stake in X’Ange 2 and a 6.22% stake in Partech Entrepreneur II, all non-consolidated companies. The transactions with these companies are not significant. Off-balance sheet commitments relating to the scope of consolidation Neopost S.A. has a share purchase commitment with X’Ange 2 for an amount of 0.2 million euros as at 31 January 2018 compared with 0.4 million euros as at 31 January 2017. Neopost S.A. has an investment commitment with Partech Entrepreneur II for an amount of 1.2 million euros compared with 2.8 million euros as at 31 January 2017. Other information relating to the scope of consolidation 3-3:

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REGISTRATION DOCUMENT 2017 / NEOPOST