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Other information
RISKS RELATED TO THE GROUPS OPERATIONS
POSTAL AUTHORITY REGULATIONS
The manufacture and marketing of mailroom equipment,
together with related services, are regulated by the postal
authorities in the countries in which the Group operates. As
a result, the Groups activity may be significantly affected by
changes in postal regulations. The Group cannot guarantee
that such changes, particularly those affecting the main
markets in which it operates, will not have an adverse impact
on its sales and operating income.
Similarly, the Groups activity partly depends on its ability to
develop and maintain contacts with those in charge of postal
authorities in the countries concerned. These people are
liable to be replaced, and no guarantee can be given
concerning the Groups ability to develop and maintain such
relationships in future. Failure to maintain these relations
could have an adverse impact on the Groups sales and
operating income.
COMPETITION
The Group has two main competitors, including Pitney
Bowes, which has an estimated 62% share of the global
mailroom equipment market. Although the Group believes
that its competitive position in the mailroom equipment
market is sustainable and that its industry has large barriers to
entry, it is possible that new competitors will succeed in
entering the market. In addition, the Groups competitors
may have greater financial resources, which could affect the
Groups competitiveness. As a result, the Group cannot
guarantee that it will be able to maintain or increase its share
of the markets in which it already operates, or enter new
markets.
TECHNOLOGICAL DEVELOPMENTS AND NEW MARKETS
The markets for the Groups products and services are and
will remain subject to rapid technological change, to the
continual improvement of existing products and to the
frequent introduction of new products. Developing and
launching these products requires heavy investment. The
Groups future results and financial position will partly
depend on its ability to improve its products and services, to
develop and offer new ones at the best possible price and
within the timeframe set by customers, and to ensure their
distribution and marketing.
DEPENDENCY ON CUSTOMERS AND SUPPLIERS
The Group has close to 800,000 customers, none of which
representing 1% of sales.
The Group uses three main suppliers, which currently
account for around 12% of its procurement. These suppliers
are Elite in China, for the production of entry level franking
machines, Transtronic in China for scales and Hewlett
Packard in the USA for ink-jet heads. A breakdown in
supplies from these three suppliers could have a significant
impact on the Groups activity, even though the terms of its
contracts protect the Group against this eventuality.
INDUSTRIAL AND ENVIRONMENTAL RISKS
The
Companys
activity
consists
of
assembly
and
distribution, and it is not aware of any environmental risks
liable to have a significant impact on its financial position,
activity or results.
TECHNOLOGICAL RISK
The disclosure requirements of article L225-102-2 of the
French Code de Commerce do not apply to Neopost, due to
the nature of its activities.