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Full Year Results
April 2008




                    1
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’.



                                                                    2
AGENDA


 Introduction


 Market trends


 Acquisitions


 Product launch


 Full year accounts


 Outlook

                      3
INTRODUCTION

               4
INTRODUCTION

2007, a transition year between 2 decertifications in the US
  After a great performance in 2006
  Market conditions more difficult than expected during H2 in the US
  Sales growth of 2.4% excluding exchange rate effects
  Slight improvement in current operating margin
   at 26.1% of total sales
  Pursued policy of return to shareholders


More intense preparation for the future
  Acquisitions
  Major product launch
  Accelerated optimisation of the Group’s organisation



                                                                        5
MARKET TRENDS

                6
MARKET TRENDS
Postal sector evolution
  Mail volumes generally flat
  Deregulation in Europe: 2008-2011
      Opening up to competition
      A situation being still different depending on the countries
  Economic and competitive pressure within postal organisations
   in North America and in Europe for:
      Greater efficiency / productivity
      Better service / flexibility
Mailing systems: a critical CRM tool for postal organisations

Enhancement of the mail preparation function
  Acceleration of equipment renewal
  Customer acquisition of new accessories

            Evolution towards more complex
        Internet-based digital franking machines                      7
    MARKET TRENDS
                                                                                   Decertification
       Main steps                                                                  of the remaining
                                                                                   electronic
                                                                                   machines in
                                                Decertification      Shape-Based   the USA
                                                of all electronic    Pricing in    2008
                                                machines in          the USA
                                                Canada and           2007
                                                partially in the USA
                                                2006

Decertification
of the mechanical                                2006
machines in                                      Pricing in
                                      2004-2005 Proportion
the USA
                                      Frankit in in the UK
1996-1999             2001-2002       Germany
                       Decertification
   2000-2001           of the mechanical
   Switch to the Euro machines in
   and « intelligent » the UK
   franking machines
   in France



           Irreversible shortening of the product life cycle                                      8
ACQUISITIONS

               9
SIGNIFICANT ACQUISITIONS

 Reinforcement of the product range through acquisitions,
 following the « rounding the core » concept
   PFE, higher volume folders/inserters
   ValiPost, industrial mail
   NBG, RFID technology


 Distribution optimisation through dealer acquisitions
   In Europe
   In the United States




     Sustained rate of the number of acquisitions           10
PFE INTERNATIONAL LTD

 Our most significant acquisition since 2002

 Worldwide leader in the high-end folders/inserters market

 Sales of around £26 million in 2007, very low EBIT margin

 Consolidation over 11 months in 2008

 Significant commercial synergies: product range and distribution

 Objective: EBIT margin at 15% within 24 months




             Reinforcement of Neopost’s
       high-end folders/inserters product range                     11
VALIPOST

 Acquisition in February 2007


 Leader in France in software solutions for industrial mailers:
   Sorting by destination before printing
   Identification labels and mail box tracker
   Production planning


 Top 6 French industrial mailers customers of ValiPost


 Sales above €3 million in 2007, up 80%



        First steps of Neopost in industrial mail                 12
NBG ID

 Neopost had owned 24% of NBG ID since 2004
 Stake increased to 100% in February 2008
 NBG ID activity:
   Integrator of RFID technologies for the logistics sector
   A promising portfolio in pallet and asset tracking
      Important contract signed with Metro/DHL
      Pilots in place notably at Mory and Kuehne & Nagel
   Development of the RFID technology for applications in:
      Parcels
      Mail (on a longer term)
   Sales around €2 million in 2007


           Strategic choice to integrate RFID
      in the technological laboratory of Neopost               13
IMPROVING DISTRIBUTION: EUROPE


 Objective: to reinforce direct distribution
 Dealer acquisitions in 2007:
   Ruf AG in Switzerland (Zurich) in July 2007
   Ducourrier in Switzerland (Geneva) in October 2007
   2 in Italy
   1 in Germany
 Remaining opportunities in:
   Switzerland
   Scandinavia
   Spain



 Continuing downstream consolidation of distribution     14
IMPROVING DISTRIBUTION: US


 Objectives: to reinforce direct distribution and to unify
 the network


 2007 deals
   Acquisition of dealers: California, Colorado, Florida, Maryland
    and Wisconsin
   Sale of territories: Alabama, Minnesota, Nevada and Pennsylvania




      Strategy of rationalising market coverage                        15
 RATIONALISING OF NEOPOST US
 DISTRIBUTION


100                                                  100

                                                                               indirect
80                                                   80
                                                             69           67
                                                                                           60        56%
60                                       56%         60
                              40%
40
                                                     40                                              44%
                    24%                                                                    40
20                                                           31           33
         0%                                          20                         direct
 0
      end 2004    end 2005   end 2006   end 2007      0
                                                           end 2004     end 2005         end 2006   end 2007

                 Unified distribution                             Direct/indirect distribution
(installed base covered by a single network, in %)                (installed base covered, in %)




                 Potential for rationalising still significant                                                 16
MAJOR PRODUCT LAUNCH

                       17
 MAJOR LAUNCH OF MAILING SYSTEMS

Price
                                                                                   IJ-110
                                  1 – IJ range renewal
                                      in mid-range
                                                                           IJ-90

        2 – Product range                                 IS-480   IJ-80
           complement
        between IJ-25 and                        IS-460                    High end
              IJ-40
                                    IS-440                IJ-70
    Low end              IS-420

                                                 IJ-60
                IS-350
                                      IJ-50

                         IJ-40

        IJ-25                                                                 Volume

  About 10-30/day                    About 30-200/day              >200/day

                                                                                            18
ENHANCED HARDWARE OPTIONS




             Manual barcode   USB mass   External   Weighing Platform
                reader         storage    printer        range




IS-350   IS-420               IS-440                IS-460                        IS-480




                                                      Mixed size        Compact         Inserter
                                                        feeder          dynamic        connection
                                                                         scale


                                                                                                    19
TECHNOLOGICAL BREAKTHROUGH IN
TERMS OF CONNECTIVITY AND SOFTWARE




IS-350        IS-420                  IS-440               IS-460   IS-480


              100




         Department    Differential        Online       Mail
          upgrade       weighing          Services   accounting
                                                      systems




                                                                             20
MAJOR LAUNCH OF MAILING SYSTEMS

 Product range encompassing 50% of the worldwide franking
 machine installed base


 Launch programme
   April 2008 => in the US
   2008 / 2009 => UK, Germany, France


 Ergonomics
   Ease of use: customer interface, «smart start», simplified access
   1st colour touch screen
   Eco-conception:
      Decrease in the weight of both machine and packaging
      Increase of the component recyclability

                 Strong competitive edge
           and increased revenue per customer                           21
IS480




        22
FULL YEAR ACCOUNTS

                     23
GROWTH EXCL. EXCHANGE RATE EFFECTS
  Sales
  (€ m)
  950                +22.0           -33.4
          918.5
                                                907.1
  900


  850

  800


  750

  700
           2006     Growth excl.     Currency    2007
                  currency impacts   impacts


   Growth of 2.4% at constant exchange rates            24
HIGH COMPARISON BASES ON THE 3 MAIN
MARKETS
           2007/2006 change*                          2007 sales: €907.1m

       North            + 0.0%
     America                                                            North
                                                  Rest of the world   America
                                                  11%                   38%
       France            + 1.2%
                                                  Germany
      United                                      7%
    Kingdom               - 2.9%
                                                  United
                                                  Kingdom
    Germany                       + 12.7%         16%

                                                                       France
     Rest of                        + 18.8%
   the world                                                            28%



                               Geographic balance between
                                North America and Europe                        25




* At constant exchange rates
STRONG GROWTH IN DOCUMENT SYSTEMS

         2007/2006 change*                            2007 sales: €907.1m



   Mailing systems             - 0.3%             Document and logistics
                                                  systems
                                                   27%

           Document
         and logistics                  + 10.6%
             systems
                                                                       Mailing systems
                                                                                73%




          Complementarities between the 2 activities                                     26




* At constant exchange rates
STRONG GROWTH IN RECURRING
REVENUES
           2007/2006 change*                      2007 sales: €907.1m



                                             Rental
      Recurring                                                     Services and
      revenues                      + 8.4%   & financial services
                                                                        supplies
                                             30%
                                                                          33%


    Equipment                  - 6.6%
         sales                                                       Equipment
                                                                          sales
                                                                          37%



                 Complementarities between equipment
                     sales and recurring revenues
                                                                                   27




* At constant exchange rates
SLIGHT IMPROVEMENT IN PROFITABILITY

Current operating margin
(Current operating income / sales, %)

                                                                                           26.1
                                                                                    26.0
25
                                                                             24.8

                                                    21.5*             23.4
                                            21.0*
                                    20.6*
                             19.6
20                                                             20.7
                 18.6
                                                       19.2*
       16.7



15
        1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007                               28




* Excluding Neopost Online
SLIGHT IMPROVEMENT IN PROFITABILITY

 Recurring revenues
   Increase in revenues coming from supplies:

      Revenues increased by 19.4% excl. exchange rate effects, i.e.
      13.6% of total Group revenues in 2007

   Financial services development (leasing and postage financing):

      Revenues increased by 21.2% excl. exchange rate effects, i.e. 8.0%
      of total Group revenues in 2007

 Productivity improvement

 Currency impacts under control (EUR/USD and EUR/GBP)


     Relevance and strength of Neopost’s model                              29
CURRENT OPERATING MARGIN OF 26.1%

                                                                                    Change
                                                                     2006    2007
  €m                                                                                    %


  Sales                                                               919     907   -1.3%

  Gross Margin                                                        706     708   +0.2%
  As a % of sales                                                   76.9%   78.0%

  EBITDA                                                              297     303   +1.9%
  As a % of sales                                                   32.3%   33.4%

  Current operating income                                            239     237   -0.7%
  As a % of sales                                                   26.0%   26.1%


            Relevance and strength of Neopost’s model                                        30




€/$ 2007 = 1.38 and 2006 = 1.26 ; €/£ 2007 = 0.69 and 2006 = 0.68
ACCELERATED OPTIMISATION
OF THE GROUP’S STRUCTURE
Research & Development
  Grouping together some R&D centres
      to strengthen R&D capacities within a budget of 5% of sales
Supply chain
  2 logistics platforms (Europe and USA)
  Direct shipment
  Optimisation of refurbishing unitS
      to reduce supply chain cycles and inventories
Distribution
  Within the context of the optimisation of the US distribution
  Standardization of the ERP and of the franking machine resetting
   systems
      to improve productivity and customer service
                                                                      31
ACCELERATED OPTIMISATION
OF THE GROUP’S STRUCTURE
 Schedule
   R&D and supply chain: H1 2008
   US distribution: 2008-2009


 Cost
   €20 million (net impact of €13 million)
   Provisions recognised in the accounts at 31/01/2008
   €6 to 7 million savings per year by 2010
   Mainly cash




        To improve current operating margin growth        32
NET INCOME BEFORE PROVISIONS
FOR OPTIMISATION
                                                                                    Change
                                                                2006        2007
  €m                                                                                    %

 Sales                                                              919      907    -1.3%
 Current operating income                                           239      237    -0.7%
 Results of disposals and others                                      1        1


 Operating income                                                   240      238    -0.7%

 Financial results                                                  (19)     (29)

 Taxes                                                              (65)     (62)

 Results of associated companies                                      1        1

 Net income                                                         157      148    -5.7%

 As a % of sales                                             17.1%         16.4%
 Diluted EPS                                                        4.91    4.68    -4.7%    33




€/$ 2007 = 1.38 and 2006 = 1.26 ; €/£ 2007 = 0.69 and 2006 = 0.68
NET INCOME

                                                                                    Variation
                                                                    2006    2007
    €m                                                                                    %

 Sales                                                              919      907      -1.3%
 Current operating income                                           239      237      -0.7%
 Results of disposals and others                                      1        1
 Provisions for optimisation                                                 (20)
 Operating income                                                   240      218      -9.3%
 Financial results                                                  (19)     (29)

 Taxes                                                              (65)     (54)

 Results of associated companies                                      1        1

 Net income                                                         157      136    -13.7%

 As a % of sales                                              17.1%        15.0%
 Diluted EPS                                                        4.91    4.28    -12.8%
                                                                                                34




€/$ 2007 = 1.38 and 2006 = 1.26 ; €/£ 2007 = 0.69 and 2006 = 0.68
WORKING CAPITAL REQUIREMENT
UNDER CONTROL
                                                                                                                               Change
                                                                                        2006                  2007
   €m                                                                                                                                   %



   Inventories                                                                              50                     43        -13.6%

   Trade receivables*                                                                     143                   157           +9.8%


   Prepaid income                                                                      (157)                 (167)            +6.7%

   Other payables and receivables                                                      (289)                 (273)              -5.5%

   Total excluding leasing                                                            (253)                 (240)               -5.3%




           WCR maintained at a very high negative level                                                                                       35




*Include only trade receivables in 2006 and 2007. In last year presentation, income tax receivables and other receivable were also included
STRONG CASH FLOW GENERATION


                                                               2006   2007
  €m


  EBITDA                                                       297    303

  Capex (net of disposals)                                     (96)   (90)

 Change in working capital requirements                          62   (13)

 Taxes                                                         (65)   (54)

 Cash from operations*                                         198    146




               Exceptional improvement of WCR in 2006                        36




* Before leasing, debt service, dividends and share buybacks
PLANNED INCREASE OF GEARING

                                         31/01           31/01

€m                                       2007            2008

Financial debt                            496             595

Cash and marketable securities           (158)           (149)

Net financial debt                        338             446


Equity                                    537             493
Net debt/equity                         63.0%        90.5%


Net Debt / EBITDA                          1.1             1.5
EBITDA / Financial charges                15.8           10.5


Impact of acquisitions, financial services development
             and return to shareholders                          37
PURSUED POLICY OF RETURN TO
SHAREHOLDERS
 For 2006:
   2.1% of total shares bought back between July 2006
    and July 2007
     655 782 shares for €62.1 million
   € 3.30 dividend paid in July 2007
     €102.6 million
   Total value returned to shareholders: €164.7 million
 For 2007:
   Buy-back of at least 2% of total shares
   €3.65 dividend per share (€113 million)



    100% of the increase in shareholder’s equity
             returned to shareholders                      38
10% INCREASE FOR 2007 DIVIDEND

       In €                                                                   4.99
55                                                                                          4.75
                                                                                     4.35
                                                                    4.32

44                                                                                             3.65
                                                   3.58 3.50
                                                                                 3.30
                                                                       3.00                         EPS
33                                    2.75
                      2.30                                                                            EPS excl.
                                                                                                      provisions
22
        1.26                                1.25                                                      Ordinary
                            1.00                                                                      dividend
11
                                                                                                    Except.
                                                                                                      dividend
0
        2001          2002          2003            2004            2005      2006      2007
     Pay-out ratio:     43%            45%            98%           69%       66%       77%



                   A dividend of €3.65 per share for 2007,
                            i.e. a yield above 5%*
                                                                                                                 39




* Based on the closing price of the 31st of January 2008 (€67.83)
OUTLOOK

          40
CONTINUING BENEFITS
OF THE NEOPOST MODEL
 Development of higher margin activities
   High end
   Supplies
   Leasing
   Postage financing
   Online services

 Structure optimisation
   Research & Development
   Supply Chain
   Distribution




      Potential to improve operating profitability   41
OUTLOOK

Impact of PFE consolidation over 11 months in 2007
  Sales: €942 million
  Current operating margin: 25.2%


2008
  Sales:
       Growth of at least 3% excluding PFE consolidation
       PFE impact: around 3 percentage points of growth (at constant exchange rates)
  Current operating margin: gain of 50 bps
   (from a current operating margin of 25,2% in 2007 including PFE)


Beyond 2008
  Continued technological and regulatory evolutions
  Neopost model for profitable growth will continue to bear fruit
  Optimisation programmes and PFE synergies
  Current operating margin above 26%                                                   42
APPENDIX


           43
CONSOLIDATED BALANCE SHEETS (1/2)

                                      FY 2006   FY 2007
Assets                           €m

Goodwill                                  529        575
Fixed intangible assets                    53         47
Fixed tangible assets                     144        135
Financial investments                      15         14
Other long term assets                      4             5
Leasing receivables                       399        425
Deferred tax assets                        44         45
Inventory                                  50         43
Trade receivables                         143        157
Other short-term assets                    49         72
Cash and marketable securities            158        150


TOTAL                                   1,588      1,668      44
CONSOLIDATED BALANCE SHEETS (2/2)

                                       FY      FY
Liabilities                    €m    2006   2007


Shareholders’ equity                 537     493
Provisions                             40      42
Long-term financial debt             312     285

Short-term financial debt            184     310
Deferred tax liabilities               23      26
Prepaid income                       157     167
Other short term liabilities         335     345


TOTAL                               1,588   1,668

                                                    45
RETURN TO SHAREHOLDERS POLICY

                                                          July   July   July   July
   €m                                                     2005   2006   2007   2008


   Net income (previous year)                             104     138    157   136
   Exercised stock options (previous year)                  4      12     11    10
   Oceanes conversion                                     135      0      0      0

   Impact on equity                                       243    150    168    146
   Ordinary dividend                                       48     69     103   113
   Special dividend                                        64     25       0     0
   Share buy-backs                                         71     63      62    50

   Return to shareholders                                 183    157    165    163

   Number of shares (in millions)*                        30.9   31.5   31.4   31.0


             2% of total shares bought back in 2007/2008                              46




 *Does not include treasury stock held for cancellation

				
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