Neopost Investor Day

SME Digital Solutions Extract

January 16, 2015

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Overall VisionDenis THIERYChairman and Chief Executive Officer

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Communication is becoming more complex

Transactional mail continues to decline…

… while new forms of digital communication are growing

Our customers have to incorporate technology trends…

… in order to effectively communicate to their customers across multiple channels

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Multiple Source, New Channels and Data Richness

Multiple sources of customer data and multiplication of media communication channels and delivery points

Increased interactivity between companies and customers

Richness of Data: Profile, Customer Type, Location

Neopost can help with this complexity

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The Shipping Market is changing too

The parcel market is growing fast driven by the growth in e-commerce

Carriers are expanding their focus from B2B to B2C

The market is shifting its focus from the carrier to the Shipper and Consumer

Postal Organizations are investing for their networks to leverage the growth in consumer parcels

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Neopost Ambition

MAIL SOLUTIONS COMMUNICATION & SHIPPING SOLUTIONS

CSS Dedicated UnitsNEOPOST INTEGRATED OPERATIONS (NIOs)

Build a Complementary Offer for Current Customer Base

Invest & Speed up Development in Non-Mail Related Business

Continue Developing Mail Related Business

• VAR

• OEM Software services

• SME oriented web / cloud based SaaS services

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Neopost Ambition

MAIL SOLUTIONS COMMUNICATION & SHIPPING SOLUTIONS

CSS Dedicated UnitsNEOPOST INTEGRATED OPERATIONS (NIOs)

Build a Complementary Offer for Current Customer Base

Invest & Speed up Development in Non-Mail Related Business

Continue Developing Mail Related Business

Marketed to enterprise accounts

Developed for NIOs SME oriented web / cloud based SaaS services

OEM Software services

VAR

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Synergies, Synergies, Synergies!

Neopost Growth Areas: What they have in common

Complementary to Neopost’s current business: synergies

Fast growing markets of good size (min $1Bn)

Neopost has the ability to take a leadership position

There is an opportunity for 15% ROCE

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SME Opportunity

>5m SMEs across Neopost’s top 4 countries

The SME market for Digital Solutions today is largely untapped

Much of Neopost’s customer base is companies < 100 employees

SaaS & Cloud are making digital solutions affordable for smaller companies

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Neopost Opportunity

A p p s / S a a S / C l o u d

CSS DUs

CSS DUs

CSS DUs

VAR

OEMNIO

NIO

Large Enterprises

Medium Size

SME/VSE

Shipping EnterpriseDigital

Shipping EnterpriseDigital Partners

S M EDigital Partners

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Positioning Neopost for the Future

MS/CSSEnterprise

Digital Solutions

Shipping

Clem GarveyEurope, APAC, Export

Alain Férard Shipping Solutions

Henri DuraEnterprise Digital

Solutions

Dennis LeStrangeUSA, Canada

Nikolaus ScholzNew

Projects

Integrated Operations

CSS Dedicated Units

New Projects

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Neopost Executive Committee

CFO R&D & Supply Chain CMSO CTO CHRO

CSS DUsNew ProjectsEnterprise Digital Solutions Neopost Shipping Solutions

NIOsUSA, CanadaEurope, APAC, Export

Chairman & CEO

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Sales evolution

Mail Solutions€922m

€1.0 billion

8%

€1.1 billion

17%

€909m

€186m

€1.1 billion

20%

› CSS sales increased by more than 40% per year since 2011› EBIT margin around 22% in 2014 despite a high level of investment

2014 (e)2013 2011

Communication & Shipping Solutions€81m

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Mid Term Ambition

2017 – 20192014 (e)

€1.4–1.5 billion*

>35%

Mail Solutions

€1.1 billion

20%CSS:

› Ability to grow organically 2% to 4% from 2017-2019

*Exchange rate: €/USD 1.25 and €/GBP 0.78

Communication & Shipping Solutions

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Market TrendsNikolaus SCHOLZChief Marketing & Strategy Officer

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Mail volumes are declining Mail* volume in Main 4 (US, UK, France, Germany)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016100

150

200

250

?

Historical Trend Projections

Sources: Historical: US (USPS Quaterly Reports), Germany (Deusche Post Annual Reports), France (ARCEP Observatoire Postal), UK (Ofcom Reports)* only addressed mail

-0.4%

-5.3%

-6.6%

-3.5%

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Two Expansion Directions from our Core

Physical Communication

DigitalCommunicationShipping

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Electronic Invoices MarketExpects strong growth over the next 3 years

Electronic Invoices – Overall Market Revenue

(in $B)

(Estimates in %)

Focus on Europe penetration rate in Europe

Global E-invoicing Market by Geographical Segmentation 2012 European market

The regulation is a key pillar to adopting a full digital invoicing solutionsThe governments are switching quickly to the Electronic invoicing , pushing SMBs to adopt this process as well Ex: Denmark is the most advanced in Europe, due to government who established E-invoices as mandatory

Other markets

USA: Need to Enhance Invoicing Process Brazil: E-invoice adoption is pushing by regulation, however the complexity involved, remains an hurdle

Series1

3.4 4.15.1

6.38.1

Source: Technavio market survey 20132016E2015E2014E20132012

CAGR +24%

Source: Billentis 2014

Source: Technavio market survey 2013

APAC 9%

EMEA 55%

Americas 36%

201420132012201120102009

B2B/B2G/G2B

B2C

24%

14%

20%

13%15%

11%13%

9%10%7%8%

5%

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SMEs are digitising rapidly

› Neopost is legitimate to accompany its customers in their transformation from a communication 100% physical to a mix of digital and physical communication

Increasing Level of digitization

Physical Only

13% Held Back

13% Digitising

ExternalPull

26% Digitising

InternalPush

9%Steady State

reached(for now)

25%Fully

Digital

16%

Immediate opportunity for Neopost Mid-term opportunity

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Conclusion on market trends

Physical Communication

DigitalCommunicationShipping

$2-3bn* $3-4bn* $2-3bn*Market

addressedby Neopost

10-12% -3% 10-12%Growth rates

* Source: Neopost and Gartner estimates

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SME Digital SolutionsNikolaus SCHOLZChief Marketing and Strategy Officer

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Positioning Neopost for the Future

Enterprise Digital

SolutionsShipping

Alain Férard Shipping Solutions

Henri DuraEnterprise Digital

Solutions

CSS Dedicated Units

MS/CSS

Clem GarveyEurope, APAC, Export

Dennis LeStrangeUSA, Canada

Integrated Operations

New Projects

Nikolaus ScholzNew Projects

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Neopost Opportunity

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A p p s / S a a S / C l o u d

CSS DUs

CSS DUs

CSS DUs

VAR

OEMNIO

NIO

Large Enterprises

Medium Size

SME/VSE

Shipping EnterpriseDigital

Shipping EnterpriseDigital Partners

PartnersS M EDigital

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Investing to claim a relevant share in fast growing market

5m SMEs

>50% of SMEsnot digitized

TransactionsDocument/SME

Adoption rate for value added services

Market Opportunity

3-5bn €

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3 key pillars of our SME SaaS solutions

030201Portal & Platform Applications Go-To-Market

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Saas Platform – complex, powerful and highly scalable – released H1 2014

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Saas Platform

It is the common platform for

• delivering all Nepost branded SaaS offerings

• targeting SME with respective products & services (Apps)

01Portal & Platform

The foundation for our future business is ready in 2014

2014• launched in H1 in the UK• ongoing evolution (v1.2)• Software Development Kit

(SDK) for App integration successfully validated

Statuspowerful and scalableplatform ready to beleveraged for business and ready for app integration

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3 key pillars of our SME SaaS solutions: Focus 2015

030201Portal & Platform Applications Go-To-Market

2014• launched in H1 in the UK• ongoing evolution (v1.2)• Software Development Kit

(SDK) for App integration successfully validated

Statuspowerful and scalableplatform ready to beleveraged for business and ready for app integration

2015• Increase number of Apps• Test & iterate fast

2015• Establish the right

go to market• Test & Iterate Fast

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A variety of APPS & the right go to market

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Mid Term Revenue Ambition

18 months 36 months

70k Users

300k Users

Paying Customers

15%

15%

ShortTerm

MidTerm

Vision

Ambition

• 50k customer

• 10-15m€

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Investing to claim a relevant share in fast growing market

mid 2016t

Growth / H2

Innovation / H3

Mature / H1

Market Stage

end 2017 2020-2025

Relevant Market Volume

Market Opportunity

3-5bn €

* Market share similar to GMCs positioning in the Enterprise market

5 -1

0%*