NEOPOST_REGISTRATION_DOCUMENT_2017

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Corporate social responsibility

Social, societal and environmental information

guaranteeing low exposure to electromagnetic fields. Tests are also conducted on product sound emissions, on drop tests and on compliance with Energy Star requirements. Energy Star is a label created by the US Environmental Protection Agency (EPA) and recognized by the European Union. It defines energy consumption criteria to improve the energy efficiency of office equipment. This efficiency depends on electricity consumption in use and on the existence of a sleep mode. The regulatory context regarding electrical and electronic equipment changes constantly at both the European and international level. The active participation by the Group in the professional organizations of the French Information Technology Industry Union (AFNUM) and the working meetings of the National Authority in France allows Neopost to follow these developments and to anticipate future ones. Among the regulatory texts with which the Group must comply, particular attention is paid to the RoHS and WEEE EU directives, the French decree on the use of nanomaterials (now applicable) and the REACH regulation. Other Human Rights initiatives Neopost operates in states based on the rule of law that respect the international conventions of the International Labor Organization on the basic principles of Human Rights. For the few countries that have not signed these conventions, especially in Asia, the local management's mission is to ensure respect for Human Rights as defined by the ILO, in accordance with the Group's values and its updated Code of Ethics, which applies in all countries including Group subsidiaries. Each Group company is responsible for dialogue with its stakeholders at the local level. The overall mapping of the Group's stakeholders is being updated as part of materiality analysis. The dialogue established with the stakeholders already identified remains regular and constructive. Relationships with postal organizations The Neopost group has forged strong, long-standing relationships with postal organizations. These relationships are essential to its core business, including the production and distribution of franking systems. Each new franking system launch is accompanied by a postal certification that gives it the authorization to market the new products and collect the resulting revenues on their behalf. In each country where Neopost is present, Group entities have signed partnership contracts with postal organizations. The Group decided to create an internal reference, the Postal Compliance management System, bringing together all the main postal requirements of these organizations. Internal audits ensure the application of good practices and ensure postal requirements are met. A cross-audit program was set up by the Group's information security officer in collaboration with the Group's CSR & QHSE manager to assess the compliance of the entities with the PCMS. Throughout the year regular meetings with postal organizations are arranged by the Group entities. Postal organizations also conduct audits in the Group’s distribution entities and production facilities and even its subcontractors. This audit program verifies that Group companies have implemented the measures necessary to meet the needs of Forging relationships with partners, customers, suppliers, and employees

these postal organizations, trends in postal standards and information security requirements. For several years the Neopost group has been a reliable partner supporting postal organizations in their growth, and providing ever more innovative solutions. The confidence gained over the years allows Neopost to work with its partners on other projects, such as an online parcel management platform developed by the Group for the Royal Mail in the United Kingdom and the Singapore postal service. In 2014, Neopost Shipping and Pickup, the La Poste Group subsidiary in France, entered into an agreement to establish and operate a network of automated and secure parcel lockers for delivering parcels in France. The terminals, related software and installation and maintenance services are provided by the Neopost group to Packcity France, a company jointly owned by Neopost and GeoPost. Two separate networks are operated by Packcity France. The first of these is the GeoPost network, with terminals incorporated in their pick-up points. The second consists of 2,000 terminals open to all carriers, as well as large distribution companies and specialist retailers offering “click & collect services”, as well as to entities that wish to offer a concierge service. Today, more than 6,500 e-retailers currently offer delivery to 350 lockers provided by Packcity to its customers. Relationships with customers and distributors Direct and indirect sales networks are essential to the development of the Group and the success and performance of Neopost are closely linked to that of its distributors in their respective markets. Neopost also has mutually beneficial partnerships with them and offers its customers innovative, high-quality, and environmentally friendly solutions that meet their needs. Finally, the Group is particularly vigilant when it comes to regulations concerning the security of its solutions and regularly carries out all the tests necessary to launch them on the market. Since the Group's culture is highly customer-focused, two annual satisfaction and loyalty surveys are conducted by the Group with thousands of Neopost customers. These surveys are conducted by phone in the Group’s main countries, working with an external specialist customer relations firm. The purpose of these surveys is to evaluate customer base trends regarding Mailing and Document Systems and to propose action plans to continue to satisfy customers as far as possible. In total more than 40 criteria are evaluated on a 1 to 5 satisfaction scale. The Group assesses the strengths and weaknesses, as well as their importance, in order to determine priority areas for improvement. Improvement plans are then prepared and managed both at Group level and at the level of business entities. These plans focus on two complementary areas: the product range and all customer-facing processes. According to the latest survey carried out in 2017, the rate remains relatively stable from one year to the next and more than 95% of customers are satisfied. In addition, on-the-spot surveys are conducted by the commercial companies to measure customers’ satisfaction in real time, to hear what Customer satisfaction 95% Of customers satisfied in 2017

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REGISTRATION DOCUMENT 2017 / NEOPOST