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2 0 0 7 Interim Results

This presentation highlights the strong sales growth, profitability gains, and returns to shareholders in the first half of 2007. It also includes information on significant acquisitions and the company's outlook.

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2 0 0 7 Interim Results

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  1. 2 0 0 7Interim Results September/October 2007

  2. DISCLAIMER Safe Harbour Statement This presentation contains forward-looking statements (made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve 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 and 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 information concerning these and other important 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’.

  3. FIRST HALF 2007 • Highlights • First half accounts • Significant acquisitions • Confirmation of outlook

  4. FIRST HALF 2007 HIGHLIGHTS

  5. FIRST HALF 2007 HIGHLIGHTS • Strong growth • Further profitability gains • Return of value to shareholders • Significant acquisitions

  6. STRONG SALES GROWTH Quarterly sales (€ million) +7.8% in H1 07 +11.9% in 2006 +10.5% +8.9% in 2005 +5.1% +6.3% in 2004 Growth significantly above the market average Growth figures are a year-on-year comparison on a like-for-like basis, and exclude the Stielow non-core businesses sold in September 2003 and March 2004.

  7. FURTHER PROFITABILITY GAINS Current operating margin (Current operating income / Sales, %) 26.3 26.0 24.8 23.4 21.5* 21.0* 20.6* 20.7 19.6 18.6 19.2* 16.7 *Excl. Neopost Online

  8. RETURN TO SHAREHOLDERS FROM JULY 2006 TO JULY 2007 • 2006 dividend: €3.30 per share • Yield of 3.5%* • Total distribution to shareholders €103m • Share buy-back and cancellation • 675,782 shares, or 2.3% of capital, acquired between July 2006 and July 2007 • Total amount: €62m, i.e. an average price of €94.60 per share => Total value returned to shareholders: €165m 100% of the increase in shareholders' equity in 2006 returned to shareholders *Based on the closing share price on 31 January 2007: €95.15

  9. FIRST HALF 2007 ACCOUNTS

  10. STRONG GROWTH IN H1 2007 Sales(€ million) +35.1 470.4 -15.0 450.3 H1 2006 Currency impacts H1 2007 Growth* Growth of 7.8% at constant exchange rates *Excluding currency impacts

  11. STRONG GROWTH IN H1 2007 Change H1 2007/H1 2006* H1 Sales 2007: €470.4m North America + 13.8% North America 42% Rest of the world 10% + 6.0% France Germany 6% United Kingdom - 2.4% United Kingdom 15% Germany + 7.1% France 27% Rest of the world + 5.0% Sales peaked in the USA in Q2 *At constant exchange rates

  12. WELL-BALANCED GROWTH Change H1 2007/H1 2006* H1 Sales 2007: €470.4m Document and logistics systems + 7.3% Mailing systems 26% Document and logistics systems + 9.5% Mailing systems 74% Success in cross selling * At constant exchange rates

  13. VERY STRONG GROWTH IN RECURRING REVENUES Change H1 2007/H1 2006* H1 Sales 2007: €470.4m Rental & leasing Services and supplies Recurring revenues + 13.2% 29% 34% Equipment sales -0.1% Equipment sales 37% Increase in recurring revenues driven by the growth in the number of equipment installed in 2006 * At constant exchange rates

  14. FURTHER PROFITABILITY GAINS • Sales growth • Product mix • Increased revenues from supplies: • Sales growth of +19.5%*, accounting for 12.7% of sales to end-July 2007 • Expansion of financial services: • Sales growth of +25.9%*, accounting for 7.5% of sales to end-July 2007 • A 23.7% increase in the portfolio to €433m • Currency impacts on margins under control Relevance of Neopost's model * Excluding currency impacts

  15. NEW IMPROVEMENT OF CURRENT OPERATING MARGIN: 26.3% In € million 31/07 2006 31/07 2007 Change % Sales 450 470 +4.5% Gross margin 344 366 +6.2% As % of sales 76.5% 77.7% 146 158 EBITDA +8.0% As % of sales 32.4% 33.5% Current operating income 115 124 +7.5% As % of sales 25.5% 26.3% Improvement in line with expectations €/$ H1 2007 = 1.34 and H1 2006 = 1.24 ; €/£ H1 2007 = 0.68 and H1 2006 = 0.69

  16. A 6.4% INCREASE OF DILUTED EPS 31/07 2006 31/07 2007 Change % In € million Sales 450 470 +4.5% Current operating income 115 124 +7.5% Results of disposals and others 1 1 Operating income 116 125 Financial results (6) (12) Taxes (33) (33) Results of associated companies 0 0 Net income 77 80 +3.9% As % of sales Diluted EPS 17.1% 2.36 17.0% 2.51 +6.4% €/$ H1 2007 = 1.34 and H1 2006 = 1.24; €/£ H1 2007 = 0.68 and H1 2006 = 0.69

  17. AN IMPROVEMENT IN WORKING CAPITAL REQUIREMENTS HALF-ON-HALF In € million 31/07 2006 31/07 2007 Change % Inventories 61 55 -9.0% +6.6% Accounts receivable 135 144 +2.0% Prepaid income (125) (127) +5.2% Other payables and receivables (257) (271) +7.0% Total excluding leasing (186) (199)

  18. CASH FLOW GENERATION IN H1 2007 • H1 2006: a particularly favourable trend in working capital • H1 2007: seasonal variation in working capital relative to 31 January In € million 31/07 2006 31/07 2007 158 146 EBITDA Capex (net of disposals) (53) (57) Change in working capital (5) (54) Taxes (33) (33) 14 55 Cash flow *Before debt service, dividens and share buy-backs

  19. REFINANCING OF ALL REVOLVING CREDIT LINES • Introduction of a single line in June 2007 intended to finance: • Neopost's general requirements • The leasing subsidiaries • Characteristics of this new syndicated revolving credit line: • Total amount of €750m (€650m initially requested) • Multi-currency • Five-year term, with two options for a one-year extension • Conditions: Libor + fixed margin of 20 basis points • Banking syndicate comprising 17 international banks Optimal conditions and very good timing

  20. Financing investment and returning value to shareholders PURSUED POLICY OF HIGHER GEARING 31/07 2006 31/01 2006 31/07 2007 In € million 496 646 510 Financial debt Cash and marketable securities (105) (158) (113) 338 533 Net financial debt 405 Shareholder’s equity 485 537 462 63.0% Net debt / Shareholder’s equity 87.6% 109.8% Net debt / EBITDA ratio 1.1 1.4 1.7 EBITDA / Financial charges 15.6 12.4 22.0

  21. SIGNIFICANT ACQUISITIONS

  22. Strengthening the offering Acquisition of PFE Acquisition of ValiPost Optimisation of the distribution network In Europe In the USA ACQUISITIONS IN 2007 Significant opportunities

  23. STRENGTHENING THE OFFERING • PFE International Limited (1/2) • A world player in folder/inserters • Sales of £29.3m in 2006 • Excellent complement to Neopost’s offer • Range marketed in 55 countries, including 10 directly: • Australia, Austria, Belgium, France, Germany, Ireland, Portugal, Singapore, UK and USA • 480 staff • Research and production unit at Loughton, Essex • Current operating margin of 5% Significant synergy in the product range and distribution structure

  24. STRENGTHENING THE OFFERING • PFE International Limited (2/2) • Acquisition of the majority of PFE's activities, representing total sales of £27.5m in 2006 • Enterprise value: £27.2m • Around 1 times sales • Acquisition financed from existing credit lines • Deal subject to approval from the relevant competition authorities • Significant commercial synergies: offering and distribution • Objective: boost current operating margin to 15% within 24 months

  25. STRENGTHENING THE OFFERING • Acquisition of ValiPost in February 2007 • France's leading provider of software solutions for industrial mailers: • Destination sorting prior to printing • Identification labels and tracking of mail crates • Production planning • Sales of around €3m in 2006 Neopost's first steps into the industrial mailing market

  26. OPTIMISING THE DISTRIBUTION NETWORK: EUROPE • Objective: strengthening the direct distribution In € million Sales acquired Sales 2006 Year of acquisition Initial geographical expansion 12 1998 Italy 2 2000 9.5 Netherlands 16 Belgium 2001 3.5 13 Norway 2003 7 4 Ireland 2004 5 8 The ability to reap the benefits of the acquisitions made

  27. OPTIMISING THE DISTRIBUTION NETWORK: EUROPE • Acquisitions in H1 2007 • Ruf AG in Switzerland (Zurich), July 2007; 2006 sales of €10m • Two small distributors in Italy, sales of €0.4m • Opportunities remain • In Switzerland • In Scandinavia • In Spain Continuing our strategy of building market coverage

  28. OPTIMISING THE DISTRIBUTION NETWORK: USA • Objectives : strengthening the direct distribution and unifying the distribution network • Review of previous acquisitions • 1st Feb. 2005: merger of Hasler branches with Neopost branches: Chicago, Boston, New York and New Jersey • 2005: acquisition of dealers: Ohio, Pennsylvania, California, Massachusetts, Oregon, Tennessee • 2006: acquisition of dealers: Alabama, Indiana, Texas, Michigan • Acquisitions in 2007 • Acquisition of dealers: Colorado, Maryland, Florida • Sale of territories: Pennsylvania, Nevada Strategy of rationalising market coverage

  29. RATIONALISING COVERAGEOF THE AMERICAN MARKET Unified distribution (installed base covered by a single network, %) 53% 40% 24% 0% An effective and active policy of rationalisation

  30. RATIONALISING COVERAGEOF THE AMERICAN MARKET Direct/indirect distribution (installed base covered, %) 69 67 indirect 61 39 direct 33 31 Significant potential for strengthening direct distribution

  31. OUTLOOK

  32. NEOPOST'S MODEL OF PROFITABLE GROWTH • Taking advantage of regulatory and technological changes • Developing higher margin businesses • Increasingly moving towards the high end • Development of financial services and online services • Improving distribution • Specific productivity programmes Boosting revenue and margins from each client

  33. CONFIRMATION OF OUTLOOK • Sales • 2007: growth of 5% to 6% • 2008: sales of €1bn* (excluding PFE acquisition) • Operating profit • 2007-2008: an improvement of 30 to 50 basis points per year (excluding PFE acquisition) • Beyond 2008 • An active market due to continued technological and regulatory changes • Neopost's model of profitable growth will continue to bear fruit *Objective based on a €/$ rate of1.35. The 1bn objective announced in March 2006 was based on a €/$ rate of 1.23

  34. APPENDICES

  35. CONSOLIDATED BALANCE SHEETS (1/2) 31/07 2006 31/07 2007 Assets In € million 526 544 Goodwill Intangible fixed assets 51 50 138 142 Tangible fixed assets 21 Financial investments 15 Other long-term assets 4 5 Leasing receivables 350 433 Deferred tax assets 47 45 Inventory 61 55 Trade receivables 136 144 31 66 Other short-term assets 105 133 Cash & marketable securities TOTAL 1,464 1,618

  36. CONSOLIDATED BALANCE SHEETS (2/2) 31/07 2006 31/07 2007 Liabilities In € million 485 Shareholders’ equity 462 Provisions 55 27 Long-term financial debt 180 303 Leasing debt 136 0 Short-term financial debt 194 343 Deferred tax liabilities 28 31 Prepaid income 125 127 284 302 Other short-term liabilities TOTAL 1,464 1,618

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