NEOPOST_REGISTRATION_DOCUMENT_2017

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Management Report

Risk factors

Group internal control and internal audit procedures at Neopost

Internal Control mainframe As part of the organization of the internal control and for the preparation of this report, Neopost adheres to the AMF reference framework, first published in January 2007, updated in July 2010 and then revised in May 2015, and the AMF Guide on the application of its recommendations. In accordance with the AMF definition, the Company has designed and implemented its internal control system to ensure: reliability of financial information; • compliance with existing laws and regulations; • implementation of the instructions and directions given by • general management; proper functioning of the Company’s internal processes, • especially those relating to the protection of its assets. On a general level, the internal control system helps the Company monitor its activities, improves the efficiency of its operations and ensures the efficient use of its resources.

Internal Control organization The Neopost group internal audit function was set-up early 2009, its purpose is to serve the Group at three levels:

• •

identify and assess risk;

conduct internal audits;

coordinate internal control. • The Group’s internal control department coordinates the work of a team of 2 permanent auditors (one in the United States and another in Europe) and that of a network of specially trained non-permanent auditors comprising the chief financial officers and financial controllers in the various Group companies. 65 people have received training in internal control and audits and conduct audits on regular basis. They are selected in accordance of the skills required for each audit. This structure gives the Group access to a wide range of skills. The internal control department reports to the Group finance department, and is able to address all topics without restriction. It also reports to the audit committeee twice per year: audit plan, main internal audit conclusions, specific projects such as antitrust policy, risk assessment, whistleblowing implementation in the United States, new acquisitions,etc.

Internal controls at Neopost

Internal controls at Neopost

Board of directors

Audit commitee

Coordination

Group Chief Financial and Legal Officer

Director of Internal Control and Synergies

Fieldwork

Team of two internal auditors (one in the US and one in Europe)

Team of Neopost Internal audit experts: 65 people have been trained to Internal Audit and Internal Control (Mainly Chief Financial Officer, Controller, Humain Ressources, IT…)

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REGISTRATION DOCUMENT 2017 / NEOPOST