Neopost : 2013 Fourth Quarter Sales

  Neopost : 2013 Fourth Quarter Sales

ORGANIC GROWTH IN LINE WITH TARGETS

  *Organic growth of 2.6%^1 in fourth-quarter 2013 and 2.7%^2 for full-year
    2013
  *Annual sales growth of 5.2% in 2013 at constant exchange rates

2013 OPERATING MARGIN

  *2013 current operating margin, before acquisition-related expenses^3:

       *now expected to be slightly lower than 25% for Neopost Integrated
         Operations^4
       *still expected to be above 12% for CSS Dedicated Units^4

SALES OUTLOOK FOR 2014

  *Sales organic growth^5 expected between 1 and 3% in 2014

Business Wire

PARIS -- March 3, 2014

Regulatory News:

Neopost (Paris:NEO), the world’s number two supplier of mailroom solutions and
a key player in communication and shipping solutions, today announced
consolidated sales of €300.5 million for the fourth quarter of the 2013
financial year (ended 31 January 2014), an increase of 0.2% on the fourth
quarter of the previous year. Sales were up 3.5% at constant exchange rates,
while organic growth^1 reached 2.6% in the fourth quarter of 2013.

Sales for full-year 2013 amounted to €1,095.5 million, up 2.4% relative to the
2012 financial year. Sales increased by 5.2% at constant exchange rates, with
full-year organic growth^2 of 2.7%, in line with annual targets.

Denis Thiery, Chairman and Chief Executive Officer of Neopost, commented: "We
have delivered our fifth consecutive quarter of organic growth, meeting our
annual targets of 5.2% growth, at constant exchange rates, and 2.7% organic
growth. Mail Solutions continues to show strong resilience, while
Communication & Shipping Solutions recorded double-digit growth, more than
doubling their share of sales in the space of two years."

^1 Q4 2013 sales are compared with Q4 2012 sales, with the addition of the
sales generated by Human Inference for one month (€0.7million) and by DMTI
Spatial for three months (€2.1 million); organic growth is calculated at
constant exchange rates
^2 2013 sales are compared with 2012 sales, with the addition of the sales
generated by GMC Software Technology for five months (€15.8 million), by Human
Inference over 10 months (€8.3 million) and by DMTI Spatial for three months
(€2.1 million); organic growth is calculated at constant exchange rates
^3 Current operating income before acquisition-related expenses as a
percentage of sales
^4 See glossary page 5
^5 Organic growth is calculated at constant exchange rates

Sales by business line

                                              Change                  Organic
                                                         Q4           growth^1
                     Q4      Q4               at
€ million                         Change  constant  2012        (at
                     2013    2012             exchange                constant
                                              rates      Restated^1   exchange
                                                                      rates)
Mail Solutions      246.7  252.2  -2.2%   +0.5%     252.2       +0.5%
Communication &     53.8   47.6   +13.2%  +19.7%    50.4        +13.0%
Shipping Solutions
Total               300.5  299.8  +0.2%   +3.5%     302.6       +2.6%

(Unaudited figures)

                                              Change                  Organic
                                                                      growth^2
                                              at         2012
€ million       2013     2012     Change  constant              (at
                                              exchange   Restated^2   constant
                                              rates                   exchange
                                                                      rates)
Mail Solutions  909.4    933.0    -2.5%   -0.2%     933.0       -0.2%
Communication
& Shipping      186.1    137.0    +35.8%  +41.7%    163.2       +18.9%
Solutions
Total           1,095.5  1,070.0  +2.4%   +5.2%     1,096.2     +2.7%

(Unaudited figures)

Mail solutions

Mail Solutions sales increased by 0.5% at constant exchange rates in the
fourth quarter of 2013, despite lower revenues from postal rate changes. This
growth reflects dynamic equipment sales for both mailing systems and
folders/inserters, and a decline in revenues from rentals and consumables.
Mail Solutions sales accounted for 82.1% of Group sales in the fourth quarter
of 2013.

Communication & Shipping Solutions

Communication & Shipping Solutions sales rose by 19.7% in the fourth quarter
of 2013, at constant exchange rates. Sales benefitted from the acquisition of
Human Inference in December 2012, and the consolidation of DMTI Spatial as
from November 2013. Restated for the scope effect of these acquisitions,
Communication & Shipping Solutions saw organic sales growth of 13.0%. Growth
was recorded across all business lines: Data Quality, Customer Communication
Management and Shipping Solutions. Growth in the share of these activities
within Neopost’s distribution network (Neopost Integrated Operations)
outstripped that of specialised subsidiaries (CSS Dedicated Units). This
illustrates the intensified commercial synergies generated to increase
Communication & Shipping Solutions sales through Neopost's distribution
network.

In all, Communication & Shipping Solutions accounted for 17.9% of Group sales
in the fourth quarter of 2013, up from 15.9% one year earlier.

Sales by region

                                        Change                                      Change
               Q4      Q4               at                                          at
€ million                   Change  constant    2013     2012     Change  constant
               2013    2012             exchange                                    exchange
                                        rates                                       rates
North         115.7  112.7  +2.7%   +7.4%          430.5    419.2    +2.7%   +6.4%
America
Europe        165.7  167.5  -1.1%   -0.2%          586.8    580.9    +1.0%   +2.1%
o/w France    65.4   66.3   -1.3%   -1.3%          234.9    236.3    -0.6%   -0.6%
Asia-Pacific  17.0   18.3   -7.0%   +10.3%         73.0     66.1     +10.3%  +23.1%
Other         2.1    1.3    n/a     n/a            5.2      3.8      n/a     n/a
Total         300.5  299.8  +0.2%   +3.5%          1,095.5  1,070.0  +2.4%   +5.2%

(Unaudited figures)

North America

The pace of growth accelerated, reaching 7.4% at constant exchange rates in
North America in the fourth quarter of 2013, driven by the sharp rise in
equipment sales as expected. Neopost reaped the benefits of the successful
launch of the new IN range of mailing systems, and the echo effect of the 2008
U.S. decertification programme. The performance in North America also gained
from sales of folders/inserters, particularly in high-end equipment, the
increase in revenues generated by Satori Software and GMC Software Technology,
and the integration of DMTI Spatial.

Europe

Sales in Europe remained practically stable in the fourth quarter of 2013, at
constant exchange rates. Sales were robust in most countries notably Germany
and Scandinavia. In the United Kingdom, market conditions remained difficult.
Sales in France are slightly down, due to postal rate change revenues that
were lower than in the same period the previous year.

Asia-Pacific

The Group maintained its robust growth performance in the Asia-Pacific region,
growing sales 10.3% at constant exchange rates in the fourth quarter of 2013.
This rise stems primarily from the good performance recorded by Mail Solutions
in Australia.

Sales by revenue type

                                     Change                                      Change
            Q4      Q4               at                                          at
€ million                Change  constant    2013     2012     Change  constant
            2013    2012             exchange                                    exchange
                                     rates                                       rates
Equipment  106.7  99.2   +7.6%   +11.8%         363.2    332.6    +9.2%   +12.7%
sales
Recurring  193.8  200.6  -3.4%   -0.5%          732.3    737.4    -0.7%   +1.8%
revenues
Total      300.5  299.8  +0.2%   +3.5%          1,095.5  1,070.0  +2.4%   +5.2%

(Unaudited figures)

Equipment sales

The sharp increase in equipment sales continued at a rate of 11.8% at constant
exchange rates in the fourth quarter of 2013. This fine performance was buoyed
notably by the growth in sales of mailing systems and folders/inserters,
especially in North America, France and the Asia-Pacific region, as well as by
the higher license sales by GMC Software Technology and the integration of
DMTI Spatial. Equipment sales accounted for 35.5% of sales in the fourth
quarter of 2013, versus 33.1% one year earlier.

Recurring revenues

Recurring revenues were down 0.5% at constant exchange rates in the fourth
quarter of 2013, due mainly to the lower revenues from postal rate changes and
the decline in revenues from rental and supplies for Mail Solutions. In
contrast, service and maintenance revenues for Communication & Shipping
Solutions were up. Recurring revenues accounted for 64.5% of Group sales in
the fourth quarter of 2013.

Outlook

In light of the acceleration in investments at the end of the year to prepare
for the launch in the first half of the platform that will support the new
Software as a Service (SaaS) offering, Neopost expects its 2013 current
operating margin for Neopost Integrated Operations to be slightly under 25%,
before acquisition-related expenses^2.  In contrast, the Group confirms an
expected margin above 12% for CSS Dedicated Units.

In 2014, Neopost expects organic sales growth of between 1 and 3%, based on
the following organic growth assumptions: Mail Solutions sales remaining more
or less stable and Communication & Shipping Solutions growing at double-digit
rate.

Denis Thiery concluded: "Neopost’s transformation strategy is in progress. To
leverage the host of opportunities identified to develop our Communication &
Shipping Solutions, we are stepping up investments, both for the platform that
will support our offer of new SaaS solutions to our traditional client base,
and for new initiatives, such as the roll-out of Packcity, our network of
automated lockers, in partnership with Geopost."

Calendar

Full-year 2013 results will be published on 25 March 2014 after market close.
First-quarter 2014 sales will be published on 27 May 2014 after market close.

Sales by distribution network

(in € million)                      2013
                                    NIO      CSS DU  elimination  Total
Mail Solutions                      909.4    -       -            909.4
Communication & Shipping Solutions  94.4     109.9   (18.2)       186.1
Total sales                         1,003.8  109.9   (18.2)       1,095.5

Glossary

  *Mail Solutions (MS): mailing systems, document management systems
    (folders/inserters for offices, mailrooms and production; other mailroom
    equipment) and related services
  *Communication & Shipping Solutions (CSS): data quality, customer
    communication management solutions, logistics solutions, document
    finishing solutions and graphics solutions
  *Neopost Integrated Operations (NIO): Neopost subsidiaries developing,
    producing and distributing Neopost products and services
  *CSS Dedicated Units(CSS DU): DMTI Spatial, GMC Software Technology, Human
    Inference, Neopost ID and Satori Software

ABOUT NEOPOST

NEOPOST IS THE EUROPEAN LEADER and the number two world-wide supplier of Mail
Solutions, as well as an increasingly significant player in the area of
Communication and Shipping Solutions. A specialist in mailroom equipment,
Neopost offers the most technologically advanced solutions for franking,
folding/inserting and addressing, in addition to a comprehensive range of
services, including consultancy, maintenance and financing solutions. Neopost
is also gradually developing a portfolio of new activities with the aim of
reinforcing its offering and the services provided for its clients in the
areas of Client Communications Management, Data Quality and Logistics
Solutions.

With a direct presence in 30 countries and 6,100 employees, Neopost generated
full-year sales of €1.1 billion in 2013. Its products and services are sold in
more than 90 countries.

Neopost is listed in Compartment A of Euronext Paris and belongs notably to
the SBF 120 index.

Changes are expressed by comparison with the same period in the previous year.

Contact:

NEOPOST
Gaële LE MEN, Tel: +331 45 36 31 39
Investor Relations Officer
Email: g.le-men@neopost.com
or
Fabrice BARON, Tel: +331 53 32 61 27
DDB Financial
Email: fabrice.baron@ddbfinancial.fr
or
web site: www.neopost.com
 
Press spacebar to pause and continue. Press esc to stop.