NEOPOST_REGISTRATION_DOCUMENT_2017

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Management Report

Risk factors

Forecasts

Neopost provides its shareholders with information on its medium-term forecasts. These forecasts are formulated based Group operates. Should there be a significant change in on the Group’s three-year plan and take into account on market conditions or the competitive environment, the Group market conditions at the beginning of 2017, namely the cannot guarantee that it would be able to achieve its forecasts. competitive environment within the three divisions of the Group and the economic conditions in the countries where the

Retirement benefit obligations

In the United Kingdom, the pension plan was closed to all new valuation leads to a deficit, then Neopost has to agree a members in 2001 and accrued benefits were frozen in schedule of contributions which will make good the deficit. As June 2006. Every three years, the British regulatory authority of 31 January 2018, the British regulation did not identify any requires that a valuation be carried out based on different deficit. The next valuation will be performed at 30 June 2020 . hypothesis than the one used according to the IAS 19. If this

Insurance

All Group companies are covered by a worldwide insurance program which covers operating damage and loss, liability, and transport risks. All Group subsidiaries adhere to the guarantees set up and negotiated at the Group level, subject to local regulatory restrictions or specific geographic exclusions. Neopost’s risks include a high level of geographic dispersion, which substantially dilutes the consequences of any claim. The cover negotiated by the Group is high and is above all aimed at insuring the largest risks which might have a material impact on the Group’s financial position. The operating damage and loss insurance cover was renegotiated for two years on 1 February 2016 with a (21)% decrease in the premium without any change in the guarantee. It was renewed on 1 February 2017 with an increase of kick-back in exchange for an extended commitment to 31 January 2019. The insurance covering transport risks was renewed on 1 February 2016 with the guarantee per claim raised to 600,000 euros at no additional cost. The insurance was renewed again on 1 February 2018 under the same conditions.

The insurance policy covering “liability” was renegociated on 1 February 2014 on a fixed premium basis, not linked with the sales level as before. This premium has been reduced by around 20% for a two-year period, as no claims had been filed. A renegotiation took place end of 2016. It led to a renewal for two years and a decrease of the premium by 10% without changing the guarantee conditions. This insurance policy was then extended to 31 January 2019. Giventhe development of Neopost in software activities, it was decided on 1 February 2014 to cover the risk of possible claims from third parties against Neopost for infringement of copyright and intellectual property. This insurance was taken out worldwide and covers risks for up to 30 million euros per claim (10 million dollars in the United States). The policy was renewed on 1 February 2016 for two years with an increase of the limit for the United States raised to 20 million dollars. Total cost of insurance amounted to 0.7 million euros in 2017. The Group’s insurance policies are regularly updated to reflect changes in the Group’s scope of consolidation and to cover industrial risks within the global insurance market framework. The Group’s guarantees are placed with leading insurers with worldwide reputations.

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REGISTRATION DOCUMENT 2017 / NEOPOST