NEOPOST_REGISTRATION_DOCUMENT_2017

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Neopost group activity

Strategy

Strategy

Between 2012 and 2017 Neopost deployed a strategy consisting in expanding its offering to digital communications and shipping solutions in order to make the Group’s activity less dependent on changes in mail volume and to create conditions for sustainable growth.

On 1 st February 2018, a new Chief Executive Officer, Geoffrey Godet, was appointed by the Board of directors. His principal mission is to accelerate the Group's transformation. He will present its strategic plan for the next few years during an investor day to be held before the end of Neopost 2018 fiscal year.

Organizational structure

Head office

Neopost’s head office is in Bagneux in the Paris region. All the Group’s strategic assets such as the research and development, production and distribution activities described

below are held by wholly owned subsidiaries of Neopost S.A.,

the parent company of the Group.

Research and development centers

Neopost has several specialised research and development centres. The main R&D centres are located in Bagneux (France) for mailing systems, in Drachten (Netherlands), Loughton (United Kingdom) for folders/inserters, Hradrec Kràlové (Czech Republic) for customer communications management software and Cavaillon (France) and Brisbane

(Australia) for shipping software and services. More than 800 engineers and technicians work in the R&D field at

Neopost.

In order to increase its productivity, Neopost subcontracts part of its R&D efforts in Vietnam.

Production centers

Neopost has three assembly centers: Le Lude (France) for high-end mailing systems, Drachten (Netherlands) for mid-range folders/inserters and Loughton (United Kingdom) for high-end folders/inserters and the automated packing system CVP-500. A team based in Hong Kong manages Neopost subcontractors in Asia. Neopost subcontractors assemble entry-level to

mid-range mailing systems and entry-level folders/inserters. This team also provides solutions for parcel lockers (Packcity). The Memphis (United States) center is in charge of logistic and customization of products for North America.

All these centers account for around 690 people.

The Group believes that its production capacity is adapted to its activities.

Distribution

Neopost’s international sales network is a key feature of its business. The Group has wholly owned subsidiaries and branches in 29 countries: Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, Norway, New Zealand, Poland, Singapore, Spain,

Sweden, Switzerland, Taiwan, United Kingdom and United States. Neopost also has a network of local distributors in about 90 countries in addition to the countries covered by its subsidiaries. These distributors are independent, essentially dedicated to Neopost products and have signed long-term distribution contracts with Neopost.

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REGISTRATION DOCUMENT 2017 / NEOPOST