Neopost Investor Day 2015

1. Neopost
Investor Day
January 16, 2015

2. 08:30 – 09:00 Overall Vision D. Thiery
09:00 – 09:15 Financial Projections J-F. Labadie
09:15 – 09:45 Market Trends & Branding N. Scholz
09:45 – 10:30 Neopost Integrated Operations C. Garvey & D. LeStrange
10:30 – 10:45 Break
10:45 – 11:00 Group Hardware Solutions T. Le Jaoudour
11:00 – 11:45 Neopost Shipping Solutions A. Férard
11:45 – 12:30 Enterprise Digital Solutions H. Dura
12:30 – 14:00 Lunch
14:00 – 15:15 Demos
15:15 – 15:30 SME Digital Solutions N. Scholz
15:30 – 15:45 Neopost Labs P. Boulanger
15:45 – 16:30 Conclusions & final Q&A D. Thiery

3. Overall Vision
Denis THIERY
Chairman and Chief Executive Officer
Neopost Investor Day

4. 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
4

5. 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
5

6. 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
6

7. 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
7

8. 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 NIOsSME oriented web / cloud based SaaS services
OEM Software services
VAR
8

9. 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
9

10. 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
10

11. Positioning Neopost for the Future
MS/CSS
New
Projects
Enterprise
Digital
Solutions
Shipping
Integrated
Operations
CSS Dedicated Units
CVP-500
SME Digital
Neopost Labs
11

12. Neopost Opportunity
A p p s / S a a S / C l o u d
CSS
DUs
CSS
DUs
CSS
DUs
VAR
OEM
NIO
NIO
Large Enterprises
Medium Size
SME/VSE
Shipping Enterprise
Digital
Shipping Enterprise
Digital
Partners
S M E
Digital
Partners
12

13. Positioning Neopost for the Future
MS/CSS
Enterprise
Digital
Solutions
Shipping
Clem Garvey
Europe, APAC, Export
Alain Férard
Shipping Solutions
Henri Dura
Enterprise Digital
Solutions
Dennis LeStrange
USA, Canada
Nikolaus Scholz
New
Projects
Integrated
Operations
CSS Dedicated Units
New
Projects
13

14. Neopost Executive Committee
CFO R&D & Supply Chain CMSO CTO CHRO
CSS DUs
New ProjectsEnterprise Digital Solutions Neopost Shipping Solutions
NIOs
USA, CanadaEurope, APAC, Export
Chairman & CEO
14

15. 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)20132011
Communication &
Shipping Solutions
€81m
15

16. 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
16

17. Mid-term projection
17
+0-2%/year
MS ~-2%
CSS ~+20%
~22%
>+15%/year
EBIT
margin*(%)
Breakdown
ambition
80% MS
20% CSS
Integrated
Operations
New
Projects
Enterprise
Digital
Solutions
Shipping
~15%
100% CSS
~20%
Max. €10m
OPEX
/year
Total
Group
+2%-4%
> 35%
20-22%
Organic
Growth
(%)
17
› Sales: €1.4 to €1.5 bn** by 2017-2019
* Calculated on sales including intercos ** Exchange rate: €/USD 1.25 and €/GBP 0.78

18. Financial projection
Jean-François LABADIE
Chief Financial Officer

19. Mid-term projection
› Sales: €1.4 to €1.5 bn** by 2017-2019
* Calculated on sales including intercos ** Exchange rate: €/USD 1.25 and €/GBP 0.78
19
+0-2%/year
MS ~-2%
CSS ~+20%
~22%
>+15%/year
EBIT
margin*(%)
Breakdown
ambition
80% MS
20% CSS
Integrated
Operations
New
Projects
Enterprise
Digital
Solutions
Shipping
~15%
100% CSS
~20%
Max. €10m
OPEX
/year
Total
Group
+2%-4%
> 35%
20-22%
Organic
Growth
(%)
19

20. 2014 estimated landing
› Sales: €1.1 bn
* Calculated on sales including intercos
20
~-1%
MS: ~-2.8%
CSS: ~+15%
~24%
~+13%
EBIT
margin*(%)
Breakdown
ambition
89% MS
11% CSS
Integrated
Operations
New
Projects
Enterprise
Digital
Solutions
Shipping
~5%
100% CSS
<15%
OPEX
~ €10m
Total
Group
~0%
20%
~22%
Organic
Growth
(%)
20

21. Maintain NIO profitability at a high level - UK example
NIO UK proportion of CSS on total sales was 12% in 2013,
is estimated to be at 14% in 2014
EBIT margin* of NIO UK was around 20% in 2013 and expected
to remain stable in 2014
In 2015, CSS is expected to reach 16% of NIO UK total sales
and NIO UK EBIT margin is expected to remain stable
Increasing share of CSS in total revenues allows the UK to offset
decline in MS
* Before headquarter expenses and industrial margin allocation
21

22. Continue to improve Enterprise Digital Solutions
profitability
Both Satori and GMC have shown strong growth since acquisition
Satori revenue evolution (2011-14) GMC revenue evolution (2011-14)
80
100
0
60
40
20
74
61
12 14E13
41
2011
53
CHFm
0
60
40
20
100
80
16 18
2011 12 14E
28
13
26
$m Acquisition: 2009 Acquisition: 2012
CAGR (11-14E)
+19.5%
CAGR (11-14E)
+22.0%
22

23. Continue to improve Enterprise Digital Solutions
profitability
Track record:
• Satori EBIT margin grew from 10% in 2009 to around 20% in 2014
• GMC EBIT margin grew from 10% in 2012 to above 15% in 2014
• DMTI, Human Inference still around 10%
Mid-term potential:
• Bring all units EBIT margin to 20%
Improvement factors:
• Strong top line growth
• Highly profitable VAR activity
• R&D and G&A spending not growing as fast as sales
23

24. Improve Shipping profitability
Lockers without long-term commitment
1. Shared use of lockers or below 7-year exclusive
commitment
2. No hardware sale
3. Billing per parcel or per locker
4. Service and maintenance revenues billed on top every
year
Lockers with 7-year commitment
1. Year one: recognition of a hardware sale for the value
of the locker and a lease receivable (leasing model)
2. Following years: financial interest recognition in the P&L
3. Service and maintenance revenues billed on top every
year
Business model
› €20-30m sales potential by 2017-2019 with ~15% EBIT margin
24

25. Improve Shipping profitability
• Software editor
• License sales and maintenance contracts
• Strong growth potential
• VAR activity possible
• 10% EBIT margin when acquired
Same model as
Satori or GMC
› 15-20% EBIT margin potential
25

26. Mid-term projection
14
18
22
EBIT margin
Horizon
2014 2019
20 to 22%
Worst case
Base case
Best case
18%
26

27. Market Trends & Branding
Nikolaus SCHOLZ
Chief Marketing & Strategy Officer

28. Mail volumes are declining
Mail* volume in Main 4 (US, UK, France, Germany)
100
150
200
250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
?
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%
28

29. Example of the USA
Source: USPS Quaterly Reports 29

30. Worldwide MS Performance 2008-2013
Neopost MS vs
PB SMB Perimeter
Neopost MS vs
PB SMB Perimeter
883 878 876 912 883 881
3 222
2 970
2 860 2 788
2 672 2 615
500
1 500
2 500
3 500
2008 2009 2010 2011 2012 2013
Neopost
PB+Neopost Revenue excluding currency effects
CAGR
2008-2013
-0.0%
Revenue (M€)M€
-4.1%
CAGR
2010-2013
+0.0%
-2.9%
Nb: Neopost estimates at constant currency
30

31. Two Expansion Directions from our Core
Physical
Communication
Digital
CommunicationShipping
31

32. Electronic Invoices Market
Expects 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 solutions
The 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
3.4
4.1
5.1
6.3
8.1
Source: Technavio market survey 2013
2016E2015E2014E20132012
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%
32

33. CCM Software Market
Overall Market Revenue
(in $M)
825
1,550
1,070
2010 2013 2017E
+9%
* Source: Gartner reports, NEDS analysis
Magic Quadrant for Customer
Communication Management Software
33

34. Data Quality Software Market
Overall Market Revenue
(in $M)
* Source: Gartner reports, NEDS analysis
727
2009 2017E
+14%
+12%
1,130
~1,850
2013
Magic Quadrant for Data Quality Tools
34

35. 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
External
Pull
26% Digitising
Internal
Push
9%
Steady State
reached
(for now)
25%
Fully
Digital
16%
Immediate opportunity for Neopost Mid-term opportunity
35

36. Large software providers try to bring
their offers down market, while new entrants
have a disruptive approach
New Entrances
Start with SaaS based freemium offer
to attract customers who then pay
for value added elements
Larger players
Try to move down
to the pyramid, targeting
the SMB’s customersby
developing a SaaS solution
mostly for retention
and new customer
acquisition
36

37. Value of E-Commerce is growing fast in the main 4 countries
Shipping: Market Trends
2016E
90,272
2015E
83,047
2014E
76,400
+15.6%
2017E
98,126
2013
63,400
2012
50,000
2011
41,100
2012
45,000
2011
37,700
57,500
2013
51,100
+13.2%
2017E
79,278
2016E
71,229
2015E
63,998
2014E
175 331
159 404
143 598
125 424107 100
96 19684 107
2017E
+13.0%
2015E 2016E2014E201320122011
440
392
347
304
262
225
191
+14.9%
2016E 2017E2014E 2015E201320122011
Source: E-Commerce Europe Report 2014
Source: E-Commerce Europe Report 2014
Source: E-Commerce Europe Report 2014
Source: E-Commerce Europe Report 2014
Germany: Value of E-Commerce, (in Million Euros) UK: Value of E-Commerce, (in Million Euros)
US: Value of E-Commerce, (in Million Euros)France: Value of E-Commerce, (in Million Euros)
37

38. Shipping: Market Trends
Parcel’s volume is growing fast in the Main 4 countries
Germany: Parcel Volumes UK: Parcel Volumes
US: Parcel VolumesFrance: Parcel Volumes
736685646598
507
415
341
2017E2016E
+13.7%
2015E2014E201320122011
994917843
747666608549
2011 2013 2014E2012 2016E 2017E2015E
+10.4%
387
354
318293263
236
205
2015E2012 2013 2014E
+11.2%
2016E 2017E2011
4,993
2015E
+12.2%
2016E
4,527
2017E
5,468
4,062
2012
3,588
2013
2,741
2011 2014E
3,161
Source: Transport Intelligent Data Report -2014 Source: Transport Intelligent Data Report -2014
Source: Transport Intelligent Data Report -2014 Source: Transport Intelligent Data Report -2014
38

39. Conclusion on market trends
Physical
Communication
Digital
CommunicationShipping
$2-3bn* $3-4bn* $2-3bn*
Market
addressed
by Neopost
10-12% -3% 10-12%Growth rates
39
* Source: Neopost and Gartner estimates

40. Neopost’s Branding Journey
January 2015

41. A global launch in 31 countries in February 2015
41

42. A branding aligned with our business strategy
is required to create awareness and claim legitimacy
Before 2012, we only had to manage Neopost as our sole brand
to claim legitimacy in mailing - our core business
Our business strategy extended to developing
digital communication and shipping solutions,
in addition to our core mailing activity
Acquisitions are increasing the brand portfolio:
GMC, Satori, Human Inference, DMTI Spatial, ProShip …
42

43. Our objective
Take our brand on a journey of transition
(not create a new brand)
Create brand consistency throughout the whole organization
and offer portfolio
Develop brand awareness and legitimacy in the digital
and shipping world
Support a change in mindset
Make every employee a brand & strategy ambassador
Our Brand is the sum total of how our customers perceive us.
Branding is about shaping that perception
« «
43

44. “Which brand (from a short-list) would
you most associate with your preferred
attributes?”
CVA study over 2,000 companies (2014)
Brand awareness: our journey will continue to gain
legitimacy for our new activities
Whilst viewed positively by
customers, Neopost has a long
way to go outside its customer
base
Rebranding is the 1st step
Now we need to convince SMEs
that Neopost is a trusted
advisor for their migration
to digital communication
44

45. The new brand
positioning
and design

46. New Positioning and Design - Overview
unique and fresh
A new color
A new logo
A new baseline
46

47. A brand architecture to reflect our main lines of business
47

48. What will our
customers think

49. We asked for customers feedback
3 major markets 2 focus groups with
decision makers
USA (Philadelphia)
UK (Manchester)
France (Paris)
from SMEs
from larger
organizations
8 participants
per group
› “Branding is the art of aligning what we want people to think about
us with what people actually do think about us. And vice-versa.”
49

50. The new identity was seen in a positive light
in all three markets
“I get the sense they are
fast moving, I like what
they are trying to do”
“The slogan helps to
describe what they do”
“The color is great,
it absolutely stands out”
“This shows they are
finally moving into
the present day”
“Now they feel less like
a manufacturer and much
more like a provider of
software and services”
It was agreed to be contemporary, adding dynamism and innovation to the brand
Respondents agreed that the new identity suggested a company that was moving
into software and services, moving away from being a manufacturer
The brand end line (Send. Receive. Connect.) received a strong endorsement from all markets
Connect is the key word: it adds modernity and helps articulate this ‘enlargement’
of Neopost’s core business
Film Branding
50

52. Neopost Integrated
0perations
Clem GARVEY,
Chief Operating Officer Europe, APAC, Export
Dennis LESTRANGE,
Chief Operating Officer North America

53. Positioning Neopost for the Future
New
Projects
Enterprise
Digital
Solutions
Shipping
Alain Férard
Shipping Solutions
Henri Dura
Enterprise Digital
Solutions
Nikolaus Scholz
New Projects
CSS Dedicated Units
MS/CSS
Clem Garvey
Europe, APAC, Export
Dennis LeStrange
USA, Canada
Integrated
Operations
53

54. Worldwide MS Performance
Neopost MS vs
PB SMB Perimeter
Neopost MS vs
PB SMB Perimeter
883 878 876 912 883 881
3 222
2 970
2 860 2 788
2 672 2 615
500
1 500
2 500
3 500
2008 2009 2010 2011 2012 2013
Neopost
PB+Neopost Revenue excluding currency effects
CAGR
2008-2013
-0.0%
Revenue (M€)M€
-4.1%
CAGR
2010-2013
+0.0%
-2.9%
Nb: Neopost estimates at constant currency
54

55. NIO Key Objectives
Strongest Resilience Possible on MS
Grow CSS Activities where net of MS and CSS is overall growth
even if it’s small (assumptions -2% in MS & +~20% in CSS)
Bring Products from Dedicated Units to NIO Customers
Maintain highest level of EBIT
55

56. OVERVIEW
Defend Market Share while striving to maintain
margins through synergies and shared services
Accelerate CSS digital solutions
Take market share in MS
Improve cross selling FI
Accelerate CSS digital solutions
Continue to take share in MS
Launch first CSS Digital Solutions
Seize opportunities -
Continue to optimize
distribution network
Europe
North America Asia-Pacific
South America
Eastern Europe
56

57. North America
Dennis LESTRANGE
Chief Operating Officer North America

58. North America Key Objectives
Slight overall revenue growth
• Mail Solutions: -2% to 0%
• CSS ~ 20%
Align sales coverage strategy by product/channel
• neoDirect
• Direct
• Dealer
Enhance customer experience
• Consistency of systems & processes
• Improve web presence and self-service options
• Automate/streamline “Quote to Cash”
Maintain EBIT rate
• Finish District consolidation
• Re-balance OPEX between MS and CSS
• Drive more efficiency & productivity
58

59. North America Productivity Evolution
313
324
310
330
341
Jan. 2011 Jan. 2012 Jan. 2013 Jan. 2014 Jan. 2015
Revenue / Employee ($K)
59
+9% in 5 years

60. Neopost USA Market Share Trends
17.4%
18.1%
18.0%
18.5%
18.6%
2010 2011 2012 2013 2014
Market Share in units
60

61. Neopost USA Market Share Trends
15.1%
15.7% 15.6% 16.0% 15.8%
25.7% 26.5% 26.4% 27.1%
28.2%
2010 2011 2012 2013 2014
Small
Mid/Comm
Market Share in units
61

62. 324 329 336 356 337 339
1,880
1,722
1,635
1,555
1,449
1,393
0
1 000
2 000
2008 2009 2010 2011 2012 2013
Neopost PB+Neopost Revenue NA excluding currency effects
North America MS Performance 2008-2013
Neopost MS vs. PB SMB PerimeterNeopost MS vs. PB SMB Perimeter
CAGR
2008-2013
+0.9%
Revenue (M€)M€
-5.8%
Nb: Neopost estimates at constant currency
62

63. North America Organic Growth
Increase market share
Better cross-sell with
Document System
Federal Government Market
More Competitive Displacement
Mail Solutions CSS
Align sales coverage
Enterprise shipping: ProShip
Document Management
• OMS-500
• GMC Inspire
• Mailroom ToolKit
Data Quality
• Infuse
• Data Improver
Shipping/Parcel Lockers
• ProShip
• Neoship
63

64. North America market segmentation
Distribution & SupportCSS Solutions
GMC, Satori, ProShip
(Direct from BU)
Local Specialist
DSS, Shipping
AR and
Telesales
certified on
CSS low end
solutions
Enterprise
Major Accounts
Mail
Center
Small
Business
GMC, Satori,
ProShip
OMS500,
Infuse, ESS
OMS100, Bulk
Mailer, EMS,
WTS
Neo Pref,
Data
Improver,
NeoShip
64

65. North America field productivity
and neoDirect
Increase Field Sales Productivity due to shift of low end hardware sales to NeoDirect
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
300
310
320
330
340
350
360
370
380
390
400
2012 2013 2014 2015B
NEODIRECTBOOKINGS$M
SALESPRODUCTIVITY$K/QBS
FIELD SALESPRODUCTIVITY and NEODIRECT NeoDirect Bookings $M
Sales Productivity $K/qbs*
*Field Sales
Field Sales Productivity and NeoDirect
65

66. NeoShip
NeoShip: Use the franking machines for Parcels
Impb requirements
Value of postage for a parcel = 10 times a letter
Discounted rates
Ease of use for customers
Simple cash collection for USPS
Customer retention / acquisition of new customers
Expansion of postage financing
66

67. $250,000
$1,200,000
$77,270
$2,066,030
2014 2015
Revenue PostageFinance Pass‐through
15,454
413,206
2014 2015
2014 2015
NeoShip and Leasing/Postage Finance Synergies
(e) (e)
› A model that can easily apply to most SaaS/Cloud based applications
Financials Shipments
67

68. North America - GMC Inspire Synergies
Results
• $5.5M in licenses, professional services organization (PSO) and maintenance
• Current pipeline $10M+
Critical Success Factors
• Alignment with Sales Coverage Model
‒ Tier 2 is the NIO “sweet-spot”
• Vertical Market approach
• Insurance segment at $3.2M
‒ Government segment at $800K
‒ GMC partnership and brand
Benefits
• Supports a “higher and wider” approach within the account
• Workflow and solutions based
• Pulls Equipment in solution—DS1200 placements
• ROI sale
68

69. North America – Conclusion
Continue gaining market shares in MS
Continue developping CSS activities
Continue optimizing the organization according
to the mix of MS/CSS
69

70. Europe, Asia-Pacific & Export
Clem GARVEY
Chief Operating Officer Europe, APAC, Export

71. NIO Europe - A Transformational Challenge
SALES
Resilience in MS, maintaining margins
Accelerated growth in CSS
SHARED SERVICES
& SYNERGIES
To increase productivity
To enhance customer experience
OFFERING
From CSS DU (OMS 500, DataImprover, etc)
Through strong partnership
FAST GO TO MARKET
Sales & Marketing coordination
to speed up GO TO MARKET,
especially in software and solutions
NEW MOBILISATION OF OUR PEOPLE
Engagement of Multinational teams across Region-wide Projects
71

72. NIO Europe - A Transformational Challenge
SALES
Resilience in MS, maintaining margins
Accelerated growth in CSS
72

73. NIO Europe - SALES (1/3)
Growth in CSS Digital Solutions Revenue >= decline in MS Revenue
(the principal focus of the NIO companies)
• Sales of new Group-sponsored Digital Solutions (own and OEM)
• VAR sales of CSS DU product
Regional alignment of Sales Coverage Strategy by Product/Channel
• Direct Sales – General sales-force
• Direct Sales – Specialised sales-forces
• NeoDirect
• SME digital solutions and on-line offerings
Strengthening and leveraging of Pre-Sales & PSO resources
to support greater sales of solutions
• Regional coordination of investment
73

74. NIO Europe - SALES (2/3)
Appropriate Pay-plans to address core resilience and solutions
simultaneously
• Leveraging of experience across territories and across Regions
(US/Europe-ROW)
Salesforce.com deployment
• All European operations on SFDC by 31 January 2016
Neopost VAR Programmes
• Central liaison with CSS DUs
• Major account coordination
OEM development and management
• FP
• New channels
74

75. NIO Europe - SALES (3/3)
Key Measures of Success:
• Increase in Sales Productivity
• % of Sales-People having sold Digital Solutions
• Evolution in ratio of Sales & Marketing Costs as a % of Sales
Actions engaged:
• Transfer of Channel Marketing resources from GMS to Operations
• Study of existing Sales, Sales Support and Marketing resources in NIO’s
• Engagement of Region’s Senior Managing Directors in ambitions
75

76. NIO Europe - A Transformational Challenge
OFFERING
From CSS DU (OMS 500, DataImprover, etc)
Through strong partnership
76

77. NIO Europe - OFFERING
Continue to integrate CSS Digital Solutions into NIO catalogue
proposed by the existing sales-force
Focus CSS Digital Solutions in areas where our research identifies
Customer Pain-Points
Selectively develop VAR activity in companies where we can
appropriately support it
Coordinate local initiatives so that we don’t lose focus on key
strategic challenges and projects
77

78. NIO Europe - OFFERING
Output Solutions, own technology:
Strong and complete product range for all type of customers and all countries
VAR program success
Incoming Solutions:
Real success with DCS but only in UK so far.
The offer is still limited through local initiatives.
Shipping Solutions:
Track inside development in major account (Samsung – Axa – AG2R …)
SaaS solutions proving difficult on existing technologies
Data quality:
DataImprover success in UK to be replicated in the other countries. (USA – Germany)
Partnership with Deyde, 3rd party provider, for Italy (and Iberia, Mexico)
DCS & UK Neopost Channel
Feb 12 to Jan 13 – £491k
Feb 13 to Jan 14 - £618k
Feb 14 to Sep 14 (8 months) –. £766k
Output Solutions, OEM:
Industrialisation of NeoTouch offer
78

79. Outsourcing mail
E‐invoicing
NIO Europe – Neotouch – OFFERING
79

80. Revenue impact of Neotouch on Neopost France traditional customers.
Sample: 115 accounts - 1 full year revenue
CORE = All core revenue (FM, FI , leasing , ink ,services …)
NEOTOUCH = 1 full year revenue of services without franking
NIO Europe – Neotouch – OFFERING
x3
Results of the pilot phase
80

81. NIO Europe – Neotouch – Key findings
Key findings:
• Neopost France knows to market this type of product
• Most of the contracts signed are over 36 months (64%)
• Incremental revenue with high margin
Next steps:
• Full launch in France
• Launch under preparation with major NIOs:
‒ First, the USA
‒ Then, Germany and UK
81

82. NIO Europe - A Transformational Challenge
SHARED SERVICES & SYNERGIES
To increase productivity
To enhance customer experience
82

83. NIO Europe - SHARED SERVICES
As the Traditional Business declines, we must ensure that every
euro spent on its support gives the maximum return across
the entire Region and not just locally
Deployment of CSS Digital Solutions requires a level of support
which smaller individual countries cannot provide on their own
Resources at Head-Office can be pooled in virtual teams with
resources in NIO’s to provide better Employee support and
a better End-User Customer experience
83

84. NIO Europe - SHARED SERVICES
Identified projects:
• Product Engineering & Support
• Leasing
• Operational Marketing
• Call Centers
• Web-shops & On-Line activity
• Information Technology
• Sales Order Processing
• Other (Accounting, Human Resources, …)
84

85. NIO Europe - A Transformational Challenge
FAST GO TO MARKET
Sales & Marketing coordination to speed up GO
TO MARKET, especially in software and solutions
85

86. NIO Europe - NEW & FAST GO TO MARKET
Better co-ordination of Marketing Activities
Mutualisation of Operational Marketing Methodology
• Search-Engine-Advertising, Search-Engine-Optimisation
• Lead-generation for core-business
Deployment of new Neopost Branding will afford an Opportunity to
achieve uniform messaging across Region, facilitating economies in:
• Product collateral
• Document conception and preparation
• Website management
Local Marketing in NIO’s can be exclusively focused
on real customer-facing value-added generation
86

87. NIO Europe - A Transformational Challenge
NEW MOBILISATION OF OUR PEOPLE
Engagement of Multinational teams across
Region-wide Projects
87

88. NIO Europe - PEOPLE MOBILISATION
Engagement of People in new Vision through new Group Internal
Communication efforts and through New Branding Project
Leverage creation of new Group of Senior Neopost Leaders Team
Engagement of People in International and Regional Projects
to prepare Structures, Systems and Processes for the future:
• Information Technology
• NeoDirect
• SME Digital Solutions
Leverage Neopost Talent Management Programme
• Inventorying of Digital Skills
88

89. NIO Europe - Conclusion
Substitution of decline in MS Revenue by CSS sales
Productivity optimisation through synergies and sharing
of Regional resources
Engagement of our People in an evolving Business Model,
leveraging their entrepreneurship to the benefit of the Region
as well as their local Operations
Accelerating the Go-To-Market of our Offers, especially
in the Digital space
89

90. Group Hardware Solutions
Thierry LE JAOUDOUR
R&D and Supply chain

91. Memphis
Loughton Drachten
Precico/Benchmark
Kong-Yue
In-Tech
Hong Kong
Bagneux /Le Lude
Group Hardware Solutions Overview
International organization developing, producing and distributing
Hardware Solutions to NIO and Shipping Dedicated Unit
R&D Centers
• Bagneux (Fr)
• Drachten (NL)
• Loughton (UK)
Supply Chain
• Le Lude (Fr)
• Drachten (NL)
• Loughton (UK)
• Memphis (USA)
• OEM Partners (Asia)
Mail Solutions
Mailing Systems
Parcel
Lockers
Parcel Hardware Sol.
91
Document Systems
Packing
Systems

92. Group Hardware Solutions Strategic Direction
Group Hardware Solutions
Maintain EBIT, Optimizing Mail Solutions and Innovating in Parcel Hardware Solutions
Optimization with NIO
• Remanufacturing
• Balancing workload between sites optimizing
fixed cost
• Provide services to NIO: Spare parts
management, Swap
• Transfer of activity from Supply Chain to
support NIO Shared Services
• Reduce R&D resources in Mail Solutions
Innovation with Shipping DU
• Parcel Lockers
• Packing Solutions
• Partly reallocate R&D resources from
Mail Solutions to Parcel Hardware
Solutions
Mail Solutions Parcel Hardware Solutions
92

93. Optimization Of Mail Solutions Supply Chain
• Remanufacturing (not applicable in China)
is impacting production of new equipment
• For Low volume, variable Cost of Internal
production is similar to OEM + Transport
• Opportunity in new Parcel hardware
equipment
• Placement of Mail Equipment is decreasing
• Growing Neopost activity in Production Mail
• Opportunity to sell our products to other
vendors (FP, Datacard…)
• Employee Retirement in our European sites
(Direct and Indirect)
• Transfer of low volume products from Asia
to Europe
• Deployment of Remanufacturing in Europe
and Malaysia
• Review OEM partnership
• Continuous reduction of fixed cost
• Use of Supply Chain organization to support Shipping
Industrial Plan
Flexibility >10% in all sites Reduction of product cost from OEM
Maintain Growth Margin despite decrease of Mail Solutions Revenue
Results
General Environment
93

94. Remanufacturing: a Strategic Project Based
on 4 Key Pillars
Leasing
• Allow to easily sale the Product
as a service
• End of lease is generating a regular
Return flow
Integrated Operation
• Promoting the Environmental benefit
selling product without distinction
between Remanufactured and New
products
Development
• Eco Design approach engaged
10 years ago
• Product Roadmap with limited
evolution allowing reused of previous
platform
Supply Chain
• Local expertise in our sites
• Remanufacturing quality same as new
94

95. Social
Benefits
•Circular economy
generating local
employment
•External
communication
Economical
Benefits
•Strong cost reduction
•Maintain retail price
Environmental
Benefits
• Decrease the
environmental impact
of the product up to 40%
• Anticipate future
environmental
regulations,
Contributing to Corporate Social Responsibility
95

96. › A worldwide approach managed within existing organization
A Worldwide Approach
96

97. Decrease Overall R&D Expense in Hardware
Solutions, Reallocate Resources to Parcel activities
2,9
3,4 3,9
-
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
2009 2013 2014 2015
M€
Mail Solution Parcel Hardware Sol.
€38.5m
€ 29.8m
Parcel Locker
• Innovate in collaboration with NID
Packing Solutions
• CVP-500:
- Continuous improvement
based on pilot feedback
- Lower cost
Mailing System
• Minimize development of new product
• Focus on rollout and quality improvement,
Document System
• Minimize development of new product, focus on
support
Production Mail
• Maintain investment in this growing segment
Parcel Hardware SolutionsMail Solutions
97

98. While Reducing our Investment in Mail Solutions, Continuous Evolution
of our Product Range is Minimizing Impact of Market Trend
DS-200
DS-65
DS-35 DS-63
DS-85/90
DS-75
Evolution of Industrial revenue of Document System
+3.5%/Y
DS-90i
DS-150/180
DS-1200 G3
› Renewal of
offer every 5
years minimum
98

99. Neopost Shipping Solutions
Alain FERARD
Chief Operating Officer Neopost Shipping

100. Positioning Neopost for the Future
New
Projects
Enterprise
Digital
Solutions
Henri Dura
Enterprise Digital
Solutions
Nikolaus Scholz
New Projects
CSS Dedicated Units
MS/CSS
Clem Garvey
Europe, APAC, Export
Dennis LeStrange
USA, Canada
Integrated
Operations
Shipping
Alain Férard
Shipping Solutions
100

101. Global B2C e-commerce figures 2013 show
double digit growth, driving parcel volumes
Asia-Pacific is the largest eCommerce
region and shows a solid growth rate
Asia-Pacific is the largest eCommerce
region and shows a solid growth rate
Out of the 1.2 billion eShoppers,
8% buy cross-border
Considering ~55% of online orders
are goods, the global e-Commerce market
for goods accounts for €645 bn
Top-3 (USA + China + UK)
= 57% of global B2C sales
101

102. Global e-commerce figures show
double digit growth, driving parcel volumes
102

103. • DHL is introducing parcel lockers for
household
• DHL/DP plans to extand the PackStation
network in other countries (like NL, IT, …)
• Mondial Relay introduces « web-to-shop »
service
• Pickup Services extending its network
in France, Benelux and Germany
• DPD integrates ParcelShop network in Germany,
Austria, Benelux for cross-border deliveries
• UK market is now covered by multiple large
networks (Collect+, Hermes, UPS)
• UPS Parcel point pan european network set up
• Giants (Amazon, Google, eBay, Uber)
are expanding sameday delivery
in local areas (LA, SF, NYC, …)
• Amazon acquired 25% of Colis Privé
(aka Adrexxo)
• Alibaba investing 10% stake in SingPost
to expand in APAC
• According IMRG, 17,5% of online orders on UK
eshops are delivered outside the UK
Parcel delivery industry trends
« Most of Innovation and investments are driven
by eCommerce »
• B2C delivery leaders are expanding their
delivery hours to meet with consumers needs
• DPD UK will start Sunday deliveries soon
• DPD DE will start Saturday deliveries soon
• PostNL UK delivers up to 9.30pm
on tuesdays and thursdays
• Rico Logistics UK offers sameday delivery
services 7 days a week
• Royal Mail will trial Sunday delivery
in London area
• UPS and Fedex to shift to dimensional pricing
on many US ground parcel shipment on
Jan 2015
• Cross border shipping on IPC and UPU
agendas
eMerchants
Parcel shops
Parcel lockers
Carriers
103

104. Demand on the Parcel Market
Shipper Recipient 23 Carrier / Operator1Buyer
Needs
to address
order pack ship collect
accept, sort
& route
Deliver
Collect
/receive
return
› Neopost, the only player on the market with a global view of the logistic chain
Trust in
shipment
Delivery
time
Cost of
shipment
Order
packing
systems
(cost of packing,
volume
optimization…)
Compliance
control and
landing costs
calculation
Tracking and tracing
Cost of
transport
(last mile)
Accessibility
Proof of delivery management
Client-server
application for
warehousing
Cloud/Saas application for e-commerce
104

105. Neopost current offer on the Parcel Market
CVP-500
Multi-carrier tracking software / RFID
Parcel Lockers
Compliance
control and
Landing
costs
calculation
Shipper Recipient 23 Carrier / Operator1Buyer
order pack ship collect
accept, sort
& route
Deliver
Collect
/receive
return
Mobile tracking solution
Trust in
shipment
Delivery
time
Cost of
shipment
OSS
Cloud/Saas application for e-commerce
› Be for PARCELS what NEOPOST is for MAIL: THE FACILITATOR
105

106. CVP-500 packing solution
Continuous packing system delivering 3D optimisation of parcel size
Since January 2015, in the USA, UPS and FedEx decided to charge shippers
according to the volume of parcels. CVP-500 clearly addresses new needs
of shippers
A first machine is operated by Doc Data, one of the largest Dutch
e-commerce fulfilment providers
Two other machines sold to fulfilment companies in the Netherlands
Pack size
=
Product
size
No stock of
predefined
boxes, but
pallets of
corrugated
cardboard
Very broad
range
of sizes
Up to
500
parcels
per hour
1 to 10
items per
parcel
Carton
reusable
for returns
or other
Shipping
label
printed and
applied on
the box
Order
details
printed and
packed at
the same
time
No need
for packing
fillers
Film CVP 106

107. CVP-500
Significant savings on labour
Up to 40% less shipping volume
No filler material needed
Up to 20% reduction in cardboard used
Flexibility for peak times
E-tailers
E-fulfilment professionals
Carriers
Any company handling large volumes
of parcels
CVP-500
Main advantages:
Automation & optimisation
-40%
*
Manual
Operators concerned:
*
107

108. CVP-500 challenge
Technical development:
smaller or bigger box size (currently: min high 10cm, max high 60cm)
bigger number of items per box
Further development:
We need to:
• stabilize the technology
• study the range we want to provide our customers with larger scope of dimension
• set up partnership with cardboard supplier and other players
• potentially address other segments
Parcels per day
3,000 8,000
CVP-500
We are still working on the go-to market
108

109. Film ProShip
Multi carrier software:
Acquisition in may 2014
$10 million in sales in 2013, double-digit growth
Market leader
Industry/Domain Expertise
Brand Recognition
Top 5 volume shipping software in the US
Fastest performing software product
on the market today
Capable of shipping millions of packages
per day
Average customer volumes at 50K packages
per day
Carrier relationships
Diamond FedEx partner (one of only four
Diamond Partners worldwide)
Fastest growing volume solution for UPS
FedEx and UPS expressed excitement with
this “marriage” as they see this driving
international shipping business using the
ProShip product and the Neopost “name”
and infrastructure
VAR* programme launched in Neopost USA
International perspective
109

110. , the ultimate solution
for parcel delivery
No waiting line
Pick-up online shopping and
drop returns in less than a minute
Convenient
Automated lockers to pick-up
your online goods and drop your returns
Easy-to-use
A user-friendly screen and
easy steps to collect and return your goods
Secured
Electronic lockers, alarm
and security camera to ensure goods
Convenient and easy-to-use automated
parcel point to pick-up online shopping
orders and drop returns in less than a
minute when and where it suits you!
Film Packcity
110

111. offer
Shared Lockers
Without commitment
1. Shared use of lockers
2. Billing per parcel
3. Customer pays locker on demand: price is defined
per day and per season (yield management )
4. Terminal configuration is decided by the
Packcity JV
5. The Packcity JV takes the risk of not filling the
terminal, so price is higher than exclusive lockers
Exclusive Lockers
With commitment
1. Exclusive use of lockers
2. Monthly billing per locker
3. Customer pays 100% of locker price, whether
used or not
4. Customer could decide terminal configuration
(column types, ...)
5. Customer takes the risk of not filling the
lockers
6. Customer can propose a location to place
the new terminal
2 main offers
› Services provided through Packcity: Online order delivery, Click & Collect,
Conciergerie…
111

112. Packcity Operator Target markets and usage
112

113. agreement
1. Two JVs between Neopost-GeoPost:
• Packcity France: Open network for all carriers and retailers (Click & Collect, conciergerie)
• Packcity GeoPost: Operating exclusively parcel lockers of GeoPost
• Majority and management: Neopost
2. Packcity sourcing hardware (via Keba), software and Services from Neopost
3. Geopost “committed” to install 1,000 parcels lockers by 2016 (Packcity GeoPost)
4. A global network of 3,000 parcel lockers
in the long term
5. A total investment of €50m
(2/3 Neopost, 1/3 GeoPost)
6. Estimated sales by 2017-2019: €20 to 30m
7. EBIT potential by 2017-2019: ≈15%
113

114. in France
95 parcel lockers already installed in SNCF
and RATP train station in Paris and suburb
100 installed by the end of January 2015
40 parcel lockers at our partners:
Relais Colis has partnership with
major players:
With
Mondial Relay
Full list available on www.packcity.com
› Close to 150 parcel lockers will be already installed by the end of January 2015
114

115. activities
2014: 14,485 delivered
parcels and 1,055 returns
Average elapsed time
to pick-up the parcel:
1.01 day and 0.47
at SNCF terminals
Decathlon Paris Cnit La Défense
115

116. global potential
3 main markets will be launched in 2015:
Residentials
Universities
Corporate
USA
Brazil
Pilot phase: 6 machines have been installed in July 2014
116

117. RFID solutions
Neopost – Cap Gemini - BearingPoint consortium selected by the French Ministry
of Defence to implement the SILRIA IT system
SILRIA: a solution to ensure the optimisation and traceability of each stage of the
French armed forces’ transportation flows all over the world, particularly in foreign
theatres of operation
Neopost provides: identification and traceability solutions, from the RFID reader gates
for ground lorries with portable readers to bar code printers and RFID tag encoders
Successful RFID pilot initiated in 2013
Deployment has started in H2 2014
€ 9m contract. € 4m have been already recognised (€ 1m in 2013, € 3m in 2014)
Case study: French Army General Headquarters (DGA)
› Neopost recognised as an expert in the RFID technology
Promising contact with other NATO armies and suppliers
(pilots are running in Europe)
117

118. Delivery
time
Trust in
shippment
Cost of
shippment
Neopost ambitions
ProShip
 Continue installation in France
 International development
 Define the
appropriate
business/
distribution
model
 Cover larger
packing
needs
Shipper Recipient 23 Carrier / Operator1Buyer
order pack ship collect
accept, sort
& route
Deliver
Collect
/receive
return
Set up solution for e-commerce players
Maintain strong position
acquired with key players
CVP-500 Parcel lockers
Compliance
control and
landing costs
calculation
for
international
trading
118

119. Neopost shipping key messages
Market growth (CAGR at 2 digits on e-commerce)
Value chain showing how Neopost has a unique position
to manage shipping without having to handle a parcel
(and not competing with the main actors)
Competitive in terms of each position where we are active
We are getting organized to grow
We are building leadership
Be for PARCEL what NEOPOST is for MAIL 
THE FACILITATOR
119

120. Enterprise Digital Solutions
Henri DURA
Chief Operating Officer Enterprise Digital Solutions

121. Positioning Neopost for the Future
New
Projects
Shipping
Alain Férard
Shipping Solutions
Nikolaus Scholz
New Projects
CSS Dedicated Units
MS/CSS
Clem Garvey
Europe, APAC, Export
Dennis LeStrange
USA, Canada
Integrated
Operations
Enterprise
Digital
Solutions
Henri Dura
Enterprise Digital
Solutions
121

122. Enterprise Digital Solutions Focus
122

123. CCM - Market Definition / Description
Customer communications management (CCM) is a strategy and a market
fulfilled by applications that improve the creation, delivery, storage and
retrieval of outbound and interactive communications. CCM supports the
production of individualized customer messages, marketing collateral, new
product introductions and transaction documents. CCM software is a set of
software components for composing, personalizing and formatting
content (acquired from various sources) into targeted and relevant
electronic and physical communications between an enterprise and its
customers, prospective customers and business partners. CCM software
enables customer interactions through a wide range of media including
mobile, email, SMS, Web pages and print.
The CCM market has evolved from the convergence of document
generation/composition and output management technologies. CCM solutions
today include the core elements of a design tool, a composition engine, a
workflow/rule engine and multichannel output management.
Vendors are providing new delivery models, such as cloud SaaS, and
incorporating social and mobile features into their product road maps. We
estimate that CCM software was an $1070-million market in 2013, based on total
software revenue worldwide. It is forecast to grow at a five-year compound
annual growth rate of approximately 10-11%.
123

124. DQ - Market Definition / Description (1/2)
Data quality assurance is a discipline that focuses on ensuring data
is fit for use in business processes. These processes range from those
used in core operations to those required by analytics and for decision
making, regulatory compliance, and engagement and interaction
with external entities
This market includes vendors that offer stand-alone software products
to address the core functional requirements of the discipline, which are:
• Data profiling and data quality measurement: the analysis of data
to capture statistics (metadata) that provide insight into the quality of data
and help to identify data quality issues.
• Parsing and standardization: The decomposition of text fields into
component parts and the formatting of values into consistent layouts,
based on industry standards, local standards (for example, postal authority
standards for address data), user-defined business rules, and knowledge
bases of values and patterns.
124

125. DQ - Market Definition / Description (2/2)
• Generalized "cleansing": The modification of data values to meet domain
restrictions, integrity constraints or other business rules that define
when the quality of data is sufficient for an organization.
• Matching: The identifying, linking or merging of related entries
within or across sets of data.
• Monitoring: The deployment of controls to ensure that data continues
to conform to business rules that define data quality for an organization.
• Issue resolution and workflow: The identification, quarantining, escalation
and resolution of data quality issues through processes and interfaces
that enable collaboration with key roles, such as data steward.
• Enrichment: The enhancement of the value of internally held data
by appending related attributes from external sources (for example,
consumer demographic attributes and geographic descriptors).
125

126. Gartner Magic Quadrant for CCM
(Nov 2014)
Strengths:
Good market understanding, robust product
strategy, deep geographic penetration.
Leading with interactive
and multichannel offerings.
Ability to execute on its offering and
customer installations exceptionally well.
One of the strongest customer experience
ratings among users surveyed for the Magic
Quadrant.
Cautions:
GMC's overall viability, and in particular
our assessment of the likelihood
that Neopost will continue investing
in the product and will advance the state
of the art of the portfolio of products,
is about average for the providers
in this Magic Quadrant.
126

127. Gartner Magic Quadrant for DQ
(Nov 2014)
Cautions:
Deep experience of customer/party data issues
Limited support beyond customer/party domains
Limited mind share and market presence
Longer time-to-value mainly due to installation
issues and product upgrades Pricing and cost
are seen as in need of improvement
Strengths:
Deep experience of customer/party data issues
Strong results from growth strategy: acquiring
companies HI, Satori Software and DMTI Spatial,
with customer-centric data management leading
to further opportunities in the MDM / analytics
areas.
Adoption of alternative delivery models: SaaS
and cloud-based deployments have seen strong
adoption by Neopost reference customers
Product support: Reference customers reported
high levels of satisfaction
127

128. EDS Footprint
EDS presence
EDS Offices
GMC (23) Satori (2) HI (4) DMTI (1) 128

129. EDS Strategy & Positioning
Customer Engagement - Customer Experience
Who you are communicating with.
Identify my customers within
different data sources.
Trustworthy data.
Correct and append if needed
Enrich with external data
Merge into one golden customer profile
Feedback
KnowKnow
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
AnalyzeAnalyze
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
Reporting and analyses
Improve
your processes
Improve your customer
profile
Compare
DQ CCM Other
applications
Customer Engagement
Customer Experience
Customer Journey
Deliver a highly relevant,
personalized message.
Deliver the message on the most
relevant channel at right place.
Save cost delivering
it in the most efficient way.
Reduce handling and correction
cost.
Do I want to do business
with this customer?
Is this a risk
or an opportunity
What is relevant for him
Can I find look a likes
129

130. Case example “Know”:
Correct / merge customer data
EDS entity
KnowKnow
AnalyzeAnalyze
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
Customer was struggling to maintain
its CRM data quality
2,000 addresses are collected everyday,
at different stages
of customer journey:
when asking for information, ordering,
and registering products, generating
a mismatch
Kitchen appliances
reseller, USCustomer
Client
situation
Benefits
A unique customer identification
was created; Satori solution enabled putting
all addresses in correct form and eliminate
database duplicates
130

131. Case example “Understand and Analyze”:
Customer opportunity assessment
Uniongas was looking to further promote
Union Gas solutions to additional eligible
customers with a focused marketing effort
Union Gas was looking for key data on
potential customers, including visualizing
location, property characteristics, as well
as estimated income
Major Canadian
Natural gas provider
Thanks to DMTI solution, response
rate from potential customers
have been brought from 1% to 4%
and even 8% in some areas
KnowKnow
AnalyzeAnalyze
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
EDS entity
Customer
Client
situation
Benefits
131

132. Case example “communicate”:
Deliver appropriate message to key customer
BAG (Business Advantage Group)
is an integrated communication
services provider in Mexico
BAG was looking for a solution that
could help leveraging customer insight
for relevant and effective
communication
KnowKnow
AnalyzeAnalyze
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
BAG is now able to deliver completely
personalized campaigns for VW bank
being sent to customers with good
credit history, classified as “not
risky”, and finishing their credit
Inspire enables multi channel
and response tracking
EDS entity
Customer
Client
situation
Benefits
132

133. Case example “Analyze”:
Improve your customer profile
4.5 millions of records on three different
systems, with update
of databases to be replicated manually
from one system to another
KnowKnow
AnalyzeAnalyze
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
Care insurer
in Netherlands
Achmea is able to serve
its customers with a single
customer view
Customer relationship database
is kept optimally up to date
EDS entity
Customer
Client
situation
Benefits
133

134. CCM and DQ Vision
CCM offer and fragmented DQ positioningFrom:
To:
Consolidated DQ positioning – Leader in quadrant
An un paralleled CCM offer – N°1 in Quadrant
And
A presence in new quadrants:
• Customer Experience
• Customer Engagement
• Customer Journey
+
134

135. CCM Vision
Become n°1 (Market, Analyst reports)
and Enter a new wave / quadrant
Maintain leadership in CCM
and enter a new wave / quadrant
• Maintain innovation and technical leadership
Attract ecosystem partners
Attract “talents”
Provide “unmatched” customer support
CCM VISION
135

136. Inspire future releases will take us
to a new wave / quadrant
The Forrester
Wave™:
Enterprise
Marketing
Software
Suite
The Forrester
Wave™:
Real-Time
Interaction
Management
Gartner
Magic
Quadrant
for the CRM
Customer
Engagement
Center
The Forrester
Wave™:
Digital
Experience
Delivery
Service
Projects for self-service,
mobile, social engagement
and real-time analytics.
Providing personalized
experiences across
channels
Cross-channel
marketing platforms
Web analytics
Customer interaction
Cross channel data
integration capabilities
Real time analytics
CCM VISION
136

137. Verticalisation strategy has been successful
in the past 2 years at GMC
0
10
20
30
40
50
60
Note: 1Print Service Providers; 2Based on 11 months YTD; excludes some unallocated revenues
0%
28% 28%
2%
36%
57%
12/13 13/14²
PSP1
Entreprise
FSI
% growth
GMC Inspire revenues growth by vertical
(2012-14)
137

138. GMC has acquired key customers in bank
and insurance, while it is still a leader in PSPs
Banks Insurance PSPs
138

139. Data Quality Vision
Strategic:
• Unify the offer and build a « differentiated » value proposition combining
the different « know-how ».
• Be recognized as a “leader” by Analysts
Operational:
• Optimize technological platforms
• Rationalize the support functions (shared services)
DQ VISION
139

140. Data Quality Unified Offer
Feedback
KnowKnow
Understand
and analyze
Understand
and analyze
Create
and manage
campaign
Create
and manage
campaign
AnalyzeAnalyze
CommunicateCommunicate
Golden
Customer
Record
Golden
Customer
Record
DQ CCM Other
applications
DQ VISION
140

141. In order to help our customers
to leverage the power of Data
Data quality is actually
more important
in the world
of big data.
Ted Friedman, VP, GartnerCustomer Profile
Master Data
Enterprise Data
Suppression Data
Social Media Data
Behavioral Data
“
”
DQ VISION
141

142. The combination of the 3 companies
offer can bring an unprecedented level
of Data Quality
Enabling companies
to create
operational
efficiency gains,
customer retention
and acquisition
DQ VISION
142

143. Business Impact
of an Increasing Data Quality
Efficiency
Customer
Retention
& Acquisition
Automated
decisions
Orchestrated
workflows
DQ VISION
143

144. Synergies will be implemented within EDS,
starting with shared services
EDS synergies implementation
Description
Increased commercial, marketing and R&D effort:
• Optimization of R&D resources
• Optimization of go-to market organization
• Common product vision / roadmap
Enhance / consolidate Gartner relationship
Rationalization of shared services:
• Finance
• HR
• Corporate Development
Timing 6 - 24 months
144

145. SME Digital Solutions
Nikolaus SCHOLZ
Chief Marketing and Strategy Officer

146. Positioning Neopost for the Future
Enterprise
Digital
Solutions
Shipping
Alain Férard
Shipping Solutions
Henri Dura
Enterprise Digital
Solutions
CSS Dedicated Units
MS/CSS
Clem Garvey
Europe, APAC, Export
Dennis LeStrange
USA, Canada
Integrated
Operations
New
Projects
Nikolaus Scholz
New Projects
146

147. Neopost Opportunity
147
A p p s / S a a S / C l o u d
CSS
DUs
CSS
DUs
CSS
DUs
VAR
OEM
NIO
NIO
Large Enterprises
Medium Size
SME/VSE
Shipping Enterprise
Digital
Shipping Enterprise
Digital
Partners
PartnersS M E
Digital
147

148. Investing to claim a relevant share
in fast growing market
5m SMEs
>50% of SMEs
not digitized
Transactions
Document/SME
Adoption rate for
value added services
Market
Opportunity
3-5bn €
148

149. 3 key pillars of our SME SaaS solutions
Portal & Platform Applications Go-To-Market
149

150. Saas Platform – complex, powerful
and highly scalable – released H1 2014
150

151. Saas Platform
It is the common platform for
• delivering all Nepost branded SaaS
offerings
• targeting SME with respective products
& services (Apps)
Portal & 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
Status
powerful and scalable
platform ready to be
leveraged for business and
ready for app integration
151

152. 3 key pillars of our SME SaaS solutions:
Focus 2015
Portal & 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
Status
powerful and scalable
platform ready to be
leveraged 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
152

153. A variety of APPS & the right go to market
153

154. Mid Term Revenue Ambition
18 months 36 months
70k
Users
300k
Users
Paying
Customers
15%
15%
Short
Term
Mid
Term
Vision
Ambition
• 50k
customer
• 10-15m€
154

155. Investing to claim a relevant share
in fast growing market
mid 2016
t
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
155

156. Neopost Labs
Philippe BOULANGER
Chief Technology Officer

157. Evolution of R&D/Project practices
Starting point: Mail is a mature industry with long cycles
• Time to deliver isn’t much an issue
• As long as we can replace old with new within 5 years
Evolution 1: Get timing back in control
• By isolating innovation projects to de-risk product projects
Evolution 2: Optimization using best practices in software
• Using Agile & Hanoï R&D Centre
Evolution 3: Focusing on incremental innovation
• New projects: By reusing the maximum of existing proven parts / modules
Outcome:
• Reduced time to market (6 months for DS63 vs 7 years for DS65)
• Reduced R&D costs
• Improved remanufacturability
• Improved reliability
157

158. Evolution of R&D practices
Historic project cycles of our mature market: 3 to 7 years
Marketing
specifies
R&D
Develops
& Industry
Builds
NIOs
launch, sell
& support
However, we are facing very different parameters
in the Digital world.
Our success of the past in a mature market could make us believe
we will succeed in our digital transformation, using the same way
of working…
158

159. What are the Key Parameters
of the Digital World?
Exponential Technology
• It’s more and more easy
to create a new set of apps
and to test new business
models
Disruption:
part of newcomers basic
vocabulary.
• “Old” business models
and industries are easy
targets
• Comes with velocity,
adaptability & uncertainty
159

160. What is Happening in the Industry?
A clear recognition that established corporations are outsmarted by external
creativity
• Too few individuals are allowed to innovate: the focus is usually to optimize the bottom-
line and historic business activities
• Internal innovation is not better than external one, and is usually not allowed to disrupt
*Planned for end of 2014
A common practice from startups to large corporations is to embrace
the “experiment based culture”
• GE has trained more than 6,000 people* to Lean Startup methodology and hundreds
of projects are experiencing linked benefits.
• Intuit spends 10% of resources on Lean Startup based innovation
• All startups are trained with Lean Startup, Effectuation, Growth Hacking, Business Model
Canvas. Stanford University has a specific course
Open Innovation uptrend
• While 40% of CAC40 are considering Open Innovation as a key direction,
only 20% are active. (Source:BNP-Paribas/Navi Radjou)
160

161. Neopost answer: Catching up
on Open Innovation key parameters
Neopost
LABS
Investors/Accelerators
Needs of Valorization
And Exit
Startups
Needs of Cash
And Access to Market
Neopost
Needs of New Biz,
DNA and Tech
161

162. Neopost LABS targets
for next 18-24 months
Other firm’s
market
Potential
new market
SME Digital
Solutions
Resources for Neopost LABS are multidisciplinary.
162

163. Targeting Startups in their lifecycle
« Valley of death »
Revenue Concept Scalability
Time
Profitability
Seed+, Series A
Angels
Seed capital
+++ Risk profile
163

164. Feeding the funnel:
Interfacing the Startups Ecosystem
Partnering with Accelerators
• Started with 2 French accelerators
• Next, extension to our local Neopost subs with accelerators in other countries
Accessing the Deal Flow of key investors
• We are in the process of selecting a lead investor giving us access to a curated deal
flow of opportunities
Using existing govt initiatives
• BPI France knows 99% of French startups and all Intermediate-Sized Enterprises
(ETI) and Large Companies
Increasing our visibility of “Industrial Partner” and our credibility
• Through our website (http://neopostlabs.com)
• Through our participation to conferences, events, blogs, social networks
164

165. Investment
Decision:
Strategic &
Investment
Committee
SME Digital
Solutions
Executing Governance on Opportunities
Filtering:
Use
Partner
Fund
JV
Acquire
(proposals)
or
Feeding
165

166. Key Takeaways about Neopost Labs
It allows to capture best practices and trends in
• Technologies
• Business models
• Go to market methods
• Ways of working
It’s a validated win/win/win setup between Neopost, startups
and the investing community
• Fueling partnerships or acquisitions
And last, it’s a best in class activity supporting the transformation
of Neopost
166

167. Conclusions and Q&A
Denis THIERY
Chairman and Chief Executive Officer

168. Leadership Ambition
Physical
Communication
Digital
CommunicationShipping
$2-3bn* $3-4bn* $2-3bn*
Market
addressed
by Neopost
10-12% -3% 10-12%Growth rates
10-15% 30% 10-15%
Market share
ambition
168
* Source: Neopost and Gartner estimates

169. Neopost in 5 years
Revenue €1.4 – €1.5 bn
Minimum 35% of CSS in total sales
Organic growth: +2% to +4%
EBIT margin: 20% to 22% (trending to 22%)
169