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October 2014

2 0 1 4 Interim results

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LIMITATION OF LIABILITY

Forward-looking statement (Safe Harbour)

This presentation contains forward-looking statements (made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995), which by their nature, involve a degree of risk and uncertainty. Forward-looking statements represent the company’s judgement regarding future events, and are based on currently available information. Consequently the company cannot guarantee their accuracy and their completeness. Actual results may differ materially from those the company anticipated due to a number of uncertainties, many of which the company is not aware of. For additional factors that may cause the company’s actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the company with the Autorité des Marchés Financiers (French financial markets authority - AMF).

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Agenda

Introduction

H1 2014 financial statements

Update on Neopost ongoing transformation

Towards a new identity

Outlook

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INTRODUCTION

2014 interim results

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FIRST-HALF 2014 HIGHLIGHTS

Communication & Shipping Solutions

Mail Solutions

Back to almost stable equipment sales in Q2

Results held up well in Europe (outside France) especially in the United Kingdom, Germany and the Nordic countries

Launch of the IN range (mailing systems) in Germany

Launch of new DS-90i folder/inserter

Success of the GMC offering (Customer Communication Management)

Accelerated synergies with the NIO network

Good integration of DMTI Spatial (Data Quality)

Promising acquisition of ProShip (Shipping Solutions)

Preparation for the roll-out of Packcity

Continued investments in SaaS line-up

Resilient performance in Mail Solutions Dynamism in CSS activities

RETURN TO ORGANIC GROWTH IN THE SECOND QUARTER

+2.7% in 2013

+2.6%

+2.1%

+3.0% +3.1%

+2.6%

-0.4%

+1.2%

6

+1 to +3% in 2014

Organic growth compared with the same period last year

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

TRANSFORMATION IN PROGRESS

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CSS: Communication & Shipping Solutions

MS: Mail Solutions

2011 sales: €1,003m

H1 2014 sales: €531m

Note: €/$ 2014 = 1.37; 2011 = 1.39; €/£ 2014 = 0.82; 2011 = 0.87

CSS = 20% of sales in Q2 2014

CSS

MS

8%

92%

CSS

19%

MS

81%

2011 H1 2014

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H1 2014 FINANCIAL STATEMENTS


9 9

H1 2014 SALES

530.7 +2.2

-12.3**

533.7

Sales € millions

H1 2013 H1 2014 Scope effect*

Currency effects

+7.1

Organic growth

+0.4% organic growth in the first half +1.2% organic growth in the second quarter

Change: -0.6%

Growth excluding currency effects: +1.7%

Scope effect: +1.3%

Organic growth: +0.4%

* Impact of acquisitions: total amount of €7.1 million for DMTI (6 months), ProShip (3 months) and DCS (3 months) ** €/$ 2014 = 1.37; 2013 = 1.31; €/£ 2014 = 0.82; 2013 = 0.86

81%

19%

-1.5%

+18.2%

H1 2014 sales: €530.7m H1 2014 / 2013 *

Mail Solutions

H1 2014 SALES BY BUSINESS LINE

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Mail Solutions

Resilient performance in Mail Solutions and dynamism in CSS

+1.7% Total growth excl. currency effect

*At constant exchange rates **Organic growth, stripping out the impact of automated parcel lockers for Australia Post: + 12.8%

CSS organic growth: +9.3%**

Organic growth: +0.4%

MS organic growth: -1.5%

Europe 55%

North America 39%

Asia-Pacific 6%

H1 2014 SALES BY REGION

11

+2.2%

+2.1%

-1.8%

-4.1%

+1.7%

North America

Europe

o/w, France

Asia-Pacific

Total growth excl. currency effect

Growth in North America and Europe Unfavourable comparison base in Asia-Pacific region

* Excluding currency effects

H1 2014 sales: €530.7m H1 2014 / 2013 *

41%

33%

26%

+0.8%

+3.7%

Recurring revenue

Sales of equipment & licences

H1 2014 SALES BY REVENUE TYPE

12

Rental & leasing

Sales of equipment &

licences

Services & supplies

67% of recurring revenue


+1.7% Total growth excl. currency effect

H1 2014 Sales: €530.7m H1 2014 / 2013 *

Current operating margin (before acquisition-related expenses) in line with 2014 targets

€ millions

Sales 534 531

Gross margin 415 413

% of sales 77.8% 77.9%

Gross operating profit 159 153

% of sales 29.8% 28.8%

Current operating income (before acquisition-related expenses) 126 119

% of sales

23.6%

22.4%

13

CURRENT OPERATING INCOME

H1 2014 H1 2013

€/$ 2014 = 1.37; 2013 = 1.31; €/£ 2014 = 0.82; 2013 = 0.86

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OPERATING MARGIN BY SEGMENT

Total H1

2013

CSS DU

Elimi- nations

€ millions

NIO

45

50 534

87

447

-8

-

-8

50

-

492

447

11.0% 23.6% 24.5%

Communication & Shipping solutions

Mail Solutions

Total sales

Current operating margin (before acquisition-

related expenses)

Impact of spending related to the development of CSS and acquisitions on margin ratios

NIO

60 531

99

432

-10

-

-10

60

-

481

432

10.0% 22.4% 23.5%

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€/$ 2014 = 1.37; 2013 = 1.31; €/£ 2014 = 0.82; 2013 = 0.86

Total H1

2014

CSS DU

Elimi- nations

€ millions

Current operating income (before acquisition-related expenses)

126 126 119

Current operating income 122 122 113

Acquisition-related income 13 0 0

Optimisation expense -13 0 0

Operating income 122 122 113

Financial income/(expense) -19 -19 -17

Taxes -23 -29 -27

Net attributable income

Net margin as % of sales

EPS

Fully diluted EPS

80

15.0%

2.34

2.22

74

13.9%

2.16

2.06

69

13.0%

2.01

1.92

NET INCOME

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H1 2014 H1 2013

Cost of debt remained stable Exceptionally low level of taxes in H1 2013

€/$ 2014 = 1.37; 2013 = 1.31; €/£ 2014 = 0.82; 2013 = 0.86 *Before non-recurring income and expense. 28% normative tax rate

H1 2013 restated*

Lower operating cash flows primarily due to higher tax payment in H1 2014

Change from 31 January € millions

EBITDA 159 153

Other items -4 -5

Cash flow* 155 148

Change in WCR -42 -42

Change in lease receivables -5 -7

Interest and income tax paid -32 -53

Cash flow from operations 76 46

Capital expenditures -50 -45

Acquisitions -40 -52

Cash flow after capex & acquisitions -14 -51

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CASH FLOW GENERATION

H1 2014 H1 2013

*Before cost of net debt and taxes €/$ 2014 = 1.37; 2013 = 1.31; €/£ 2014 = 0.82; 2013 = 0.86

€ millions

Financial debt 960 995 1,057 1,280

Cash and marketable securities -152 -187 -187 -367

Net financial debt 808 808 870 913

Shareholders' equity 750 770 770 780

Net debt / shareholders' equity

108% 105% 113% 117%

Net debt / Gross operating profit ratio

2.4 2.4 2.6 2.8

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FINANCIAL STRUCTURE

31/01 2014

31/01/14 restated *

31/07 2014

Change in net debt in line with acquisitions completed in 2014 and the end of the GMC payment

Covenants: minimum shareholders' equity of €525 million and net debt/EBITDA ratio below 3.25

31/07 2013

* Restated for the impact of the interim dividend paid in February 2014 Closing €/$ rate: 1.33 at 31/07/2013; 1.35 at 31/01/2014; 1.34 at 31/07/2014

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NEOPOST'S SOLID BALANCE SHEET

Shareholders' equity: €780 million at end-July 2014

Future leasing and rental flows in excess of €900 million

Leasing portfolio at 31 July 2014: €688 million

Up 5% on 31 July 2013*

Rental

Net present value of future rental flows in the range of €300 million

Net debt: €913 million at end-July 2014


Future leasing and rental cash flows in excess of net debt

Objectives

19 19

CHANGE IN NEOPOST'S DEBT

Neopost carried out two new refinancing operations since early 2014:

Inaugural public bond (June 2014)

Nominal amount: €350 million

Fixed annual coupon: 2.50%

Maturity: 7 years

US private placement (September 2014)

Nominal amount: US$90 million

Variable annual coupon: Libor +1.75%

Maturity: 8 years (redeemable from year 6)

Transactions completed

* At constant debt, relative to estimated financial expense for 2014

Carrying costs of €2 million in H2 2014

€6 million reduction in financial expense in 2015 *

Convertible bond (OCEANE) refinancing

Nominal amount: €300 million

Fixed annual coupon: 3.75% (4.88% under IFRS)

Maturity: 1 February 2015

Early redemption of the Schuldschein in USD

Nominal amount: US$ 90 million

Variable annual coupon: Libor +2.50%

Residual term: 2 years

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0

100

200

300

400

500

600

700

800

2015 2016 2017 2018 2019 2020 2021 2022

USPP 90 M$

Obligation 2,5%

Disponibilité sur la ligne Revolving

Obligation 3,5%

Schuldschein en $

Schuldschein en €

Placements Privés Français

USPP 175 M$

USPP 50 M$

OCEANE

In € millions

€500 million

DEBT SCHEDULE BEFORE REFINANCING OPERATIONS IN 2014

French Private Placements

Schuldschein in €

Schuldschein in $

Revolving facility (undrawn as of 31/07/14)

Bond 3.5%

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0

100

200

300

400

500

600

700

800

2015 2016 2017 2018 2019 2020 2021 2022

USPP 90 M$

Obligation 2,5%

Disponibilité sur la ligne Revolving

Obligation 3,5%

Schuldschein en $

Schuldschein en €

Placements Privés Français

USPP 175 M$

USPP 50 M$

OCEANE

DEBT SCHEDULE AFTER REDEMPTION OF CB & SCHULDSCHEIN USD

In € millions

Public bond 2.5%

€500 million

USPP $US90 million

Extension of debt maturity

French Private Placements

Schuldschein in €

Bond 3.5%

Revolving facility (undrawn as of 31/07/14)

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UPDATE ON NEOPOST ONGOING TRANSFORMATION


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UPDATE ON MAIL SOLUTIONS

A mature market with opportunities thanks to postal initiatives

MailmarkTM , new generation of mail barcodes in the United Kingdom

Australia: financial incentives for franked mail and option to use franking machines for parcels

Canada: financial incentives for franked mail

USA: preferential prices as of 2015 for parcels when using a franking machine

Competitiveness of Neopost’s range of products and ongoing launches

H1: launch of the DS-90i folder/inserter system and continued roll-out of the IN mailing systems range

Planned in H2: DS-150/180i to replace the DS-100/140

Neopost has the capacity to capitalise on its positioning as challenger to outperform its market

RECAP ON CSS STRATEGY 1/2

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2013 2016-18CSS CSS

Mail Solutions Mail Solutions

17% 30-35%

83% 65-70%

Business expansion strategy:

Niche markets with sizeable growth potential

Markets in which Neopost can be or become a key player

Commercial synergies with the existing customer base and with the Neopost distribution network

Medium-term goal:

RECAP ON CSS STRATEGY 2/2

Development of new offerings in Data Quality, Customer Communication Management and Shipping:

Neopost own initiatives, i.e. Shipping Solutions (Parcel Lockers, CVP-500 and others)

Targeted acquisitions:

Protected independence

Neopost brings them a global presence, its distribution network and its financial strength

Partnerships (GeoPost for Packcity, ...)

Technology of some offers to be adapted to meet the needs of SMEs

Objectives:

Double-digit organic growth*:

Own growth by dedicated units

Commercial synergies with the Neopost network

ROCE @ 15% in a 3 to 4 year horizon

25 Development of the CSS portfolio,

a key transformation driver for the Group

* Growth excluding currency effects

SUCCESSFUL GMC ACQUISITION

Initial sales: CHF 42 million in 2011

28% growth* in 2012

13% growth* in 2013

Estimated growth* in 2014 > 20%

EBIT ~10% in 2011 => above 15% in H1 2014

Total acquisition cost = CHF 152 million

ROCE in line with the 15% target in 3 to 4 years

26 GMC: a new example of value creation

through a successful acquisition


GMC: ILLUSTRATION OF NEOPOST'S STRATEGY

GMC's technological leadership (Customer Communication Management)

Ranked #1 by Forrester and #2 by Gartner

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Consolidation of global leadership in PSP (Print Services Provider)

60% market share

The company has also successfully expanded into insurance, telecoms, utilities and other vertical markets.

+49%* versus H1 2013 in the banking sector

+98%* versus H1 2013 in insurance

40% of sales in H1 2014 already generated in non-PSP, compared with less than 10% when the acquisition was made

Synergies with the Neopost network

Reinforced GMC leadership since its acquisition by Neopost


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* Value added reseller ** H1 2014 organic growth at constant exchange rates

GMC SYNERGIES

Product synergy

OMS-500: client-server and SaaS version, replacing Print Machine

GMC, preferred partner for Neopost offers to SMB

VAR* synergies

70% organic growth** in sales generated by the NIO network

VAR programme launched in all the main Neopost subsidiaries

Very substantial synergies

ACQUISITION OF PROSHIP IN MAY 2014

Provider of multi-carrier parcel shipping solutions In the Top 5 in the US market Ex-SPSI, renamed ProShip

$10 million in sales in 2013, double-digit growth

The fastest performing software in the market (with the capacity to process several million parcels daily)

Certified by the largest carriers: Fedex (Diamond Elite label), UPS, DHL, USPS,...

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VAR* programme launched in Neopost USA

Cornerstone of Neopost's strategy in the United States for shipping solutions

* Value Added Reseller

Customer base includes traditional and e-commerce retailers, logistics operators, pharmaceutical distributors Average of 50,000 parcels per day Max > 1 million parcels per day

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France

Success and completion of the pilot phase initiated in 2013

About 15 parcel lockers installed in shopping centres, grocery shops and specialist shops

60% of parcels picked up on the same day, promising fill rate

Stakeholder satisfaction: convenient locations that are easily accessible, generation of additional footfall

Agreement signed with GeoPost in January 2014

The potential is for 3,000 parcel lockers to cover the French market in the long run

1 GeoPost dedicated network

1 network shared with a number of operators in the logistics and distribution chain

International development potential

PACKCITY DEPLOYMENT 1/2

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France (cont'd)

Extension of the network by the end of 2014

150 parcel lockers to be installed, in shopping centres, shops (general and specialist for click & collect) and in city centres and suburbs

2/3 of these will be GeoPost dedicated lockers

Brazil

Collaboration with the Brazilian postal service, Correios

Leader in the field for e-commerce deliveries in Brazil

6 pilot installations in 2 cities (Brasilia and Curitiba)

Neopost: facilitating parcel flows for e-commerce

PACKCITY DEPLOYMENT 2/2

OTHER SHIPPING SOLUTIONS DEVELOPMENTS

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RFID / French Army General Headquarters (DGA)

Successful RFID pilot initiated in 2013

Deployment will start in Q4 2014

CVP-500

Continuation of the pilot phase

A first machine is operated by Doc Data, one of the largest Dutch e-commerce fulfilment providers

A second prototype is installed at another logistics operator in the Netherlands

Very promising developments in shipping solutions and e-commerce

NEW IDENTITY


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TAKING NEOPOST’S TRANSFORMATION TO THE NEXT LEVEL

Keeping up with changing market needs

Development of multichannel communications and e-commerce

Changes in the way organizations communicate and drive their business

Organizations needs for more responsive and more powerful customer interactions

Neopost’s transformation process well underway

New strategy deployed since beginning of 2012: extension and enrichment of the Group’s activities

Consistent offer with a wider portfolio of solutions

Hardware, software and services in the fields of mailing, shipping and digital communications

Helping organizations to create enduring interactions through relevant communications.

34 Complementary businesses, one motto:

Send. Receive. Connect.

A NEW IDENTITY

A new look and feel Bright and vivid for dynamism and optimism

Simple and recognizable

Portraying a multimedia world

Logo revisited Reinvigorated “N” of Neopost:

Symbol for mail or email, as well as the infinity symbol – symbolizing never-ending interactions

Green color:

Growth: Neopost is an evolving group

Harmony: Neopost is a company recognized for its human values

Safety: Neopost is seen as a trusted adviser and expert by its customers

Rounded typeface: close to customers

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Deployment as from February 2015 Neopost group and worldwide network

37

OUTLOOK


OUTLOOK FOR 2014 CONFIRMED

2014 sales growth expected in the range +1 to +3%, excluding currency effects

2014 current operating margin before acquisition-related expenses forecast at 22.5 to 23.5%* despite the dilutive effect of recent acquisitions (DCS and ProShip)

Maintaining a high level of dividend

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* Excluding new acquisitions

APPENDICES


40

77

7

688

2

41

132

192

1,006

182

84

2,781

366

4

68

11

654

2

43

139

172

971

174

96

2,483

152

1

Trade receivables

Inventories

Deferred tax assets

Lease receivables

Other non-current receivables

Non-current financial assets

Tangible fixed assets

Intangible fixed assets

Goodwill

Other current assets

TOTAL

Cash & cash equivalents

Current financial instruments

CONSOLIDATED BALANCE SHEET (1/2)

Assets (in € millions)

69

10

675

2

46

134

178

977

219

82

187

0

2,579

31/07

2014

31/07

2013

31/01

2014

41

373

177

137

321

959

18

780

0

2,781

14

2

423

180

136

85

875

20

750

1

2,483

10

3

CONSOLIDATED BALANCE SHEET (2/2)

Liabilities (€ millions)

Other current liabilities

Prepaid income

Non-current financial instruments

Deferred tax liabilities

Other non-current liabilities

Current financial debt

Non-current financial debt

Non-current provisions

Shareholders' equity

Current financial instruments

TOTAL

426

211

142

87

908

20

770

0

2,579

12

3

31/07

2014

31/07

2013

31/01

2014

42

FRANKING MACHINES

43

FOLDERS/INSERTERS

2011

DS-35

2012

DS-75

2010

DS-90 i

2014

2014

DS-1200 G3

2013

DS-63

2012

DS-85

2012

250

DS-200

DS-65

2012

DS-150/180

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http://neoportal.neopost.grp/Reference/Products/DS/DS-65/neo0007.jpg

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