Investor‘s Day 2012 Unaudited Financial Statements 1st ...1.6 1.6 0.5 0.2 4.9 6.5 2011 Q1 2012...

fp-francotyp.comF00.10 - Rev. 3.0

Investor‘s Day 2012Unaudited Financial Statements1st Quarter 2012

FRANCOTYP-POSTALIA HOLDING AG

fp-francotyp.comInvestor‘s Day 2012 – Unaudited Financial Statements 1st Quarter 20122

This report contains forward-looking statements on the business development of the Francotyp-Postalia Group. These statements are basedon assumptions relating to the development of the economic and legal environment in individual countries and economic regions, which we havemade on the basis of the information available to us and which we considerto be realistic at the time of going to press. The estimates given entail a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in ourkey sales markets, such as Western Europe (and especially Germany) or in the USA, UK, or Canada, and Singapore will have a corresponding impacton the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, Canadian dollars, Singapore dollars. In addition, expected businessdevelopment may vary if the assessments of value-enhancing factors and risks presented in the 2011 Annual Report develop in a way other than weare currently expecting.

DISCLAIMER


AGENDA

3. Tem sequi vullupt atiost sum ratiossum disestem2. Business Model and Products

1. FP and its Strategic Initiatives

3. Tem sequi vullupt atiost sum ratiossum disestem3. Markets

3. Tem sequi vullupt atiost sum ratiossum disestem4. Unaudited Financial Statements Q1 2012

3. Tem sequi vullupt atiost sum ratiossum disestem5. Guidance 2012 and Goals until 2014

3. Tem sequi vullupt atiost sum ratiossum disestem6. Appendix


MAIL COMMUNICATION FOR THE 21ST CENTURY

FrankingMachine

Manufacturer

elec

tron

ical

(dig

ital)

pysi

cal

(ana

logu

e)

Global Expert in physical and

electronic Mail Communication

The company intends to be a trend-setting global expert in physical and electronic mail communication by 2015.


OUR MULTI-CHANNEL APPROACH FOR THE 21ST CENTURY

Sender Recipient

Public authority

Citizen

CompanyComputer

Delivery Service

Consolidation

Consolidation

Delivery Service

Public authority

Citizen

Company

PhysicalPhysical

HybridHybrid

Fully ElectronicFully Electronic

PostBase

NEW

First De-Mail-Provider in Germany


OUR 4 STRATEGIC INITIATIVES

Expansion into

emergingmarkets

Growth in traditional markets

New growth opportunitiesthrough fullyelectronic

communication

Expansion of outsourcing

and consolidation

business

Markets

new

tradi

tiona

l

newtraditional Products


AGENDA








FP BUSINESS MODEL

Fully Electronic Mail:

Secure E-Mail

Hybrid-MailPhysical Mail:

Franking, Inserting, Hybrid-Mail, Consolidation


POSTBASE – THE FUTURE WAY OF MAIL COMMUNICATIONCombination of Analogue and Digital Postal World

USP:

Multi Colour Concept

FP Navigator and FP Portal

Network connectivity (Plug & Play)

Upgradeability of speed (30, 45, 65)

Features:

Ease of Use –Only one button to start

Touch Display to operate

Quiet in operation


FP BUSINESSMAILComplete and secure outsourcing/hybrid-mail for every kind of letter volume

USP:

Integration of customer-specificsolutions and processes

Internal production, postageoptimisation

Secure and confidential processes

Features:

Data are submitted via VPN-connections

FP owned printing centre

Flexible, efficient and quick customer communication

Main competitors:


Facts:

2011 De-Mail law has been enacted

De-Mails are

legally binding

secure and

confidential

FURTHER GROWTH OPPORTUNITY: DE-MAIL

Competitors:

The Future Digital LetterStrategy:

Sales acitivities have been started

Main focus on Small- and Mid Cap Companies and Public Authorities

Further approach: Cooperations

Market Potential:

10% of the potential De-Mail market, i.e. approx. 540 million De-Mails

Mid and long term target for FP:10% market share of De-Mail market,i.e. approx. 54m De-Mails

Approx. €15m - €20m revenue

FP – The First De-Mail Provider in Germany


AGENDA








FP IS REPRESENTATED IN THE MOST IMPORTANT MARKETS

USA

~500 letters/inhabitant

5% market share(4% in 2006)

-4.6% CAGR (2006-2011)

Total vol. 166.5 bn (2011)

Germany


-0.6% CAGR (2005-2010)

Total vol. 16.4 bn (2010)

UK


-3.5% CAGR (2006-2011)


Quantative overview of FP‘s major markets

Scandinavia

~250 letters/inhabitant (Sweden)

-5.2% CAGR (2005-2010)






QUALITATIVE ANALYSIS OF FP MARKETS

Revenue Stream

Recurring Revenue

Non-Recurring Revenue

Sales Structure

Direct Sales

Dealer Network

Market Structure

Rental Markets(US, CAN, F)

Sales Markets(GER, AT, UK)

Environment

Change of customerbehaviour

Shifting of letter volumethrough digital solutions

(De-Mail)

Change of competitiveenvironment


FP SHOWS CLEAR PICTURE FOR THE FUTURE

Efficient

Flexible Innovative

Stable

Stable RecurringRevenue and strong Cash flow

Clear Strategyfor further

growth and profitability

Customer tailoredproduct bundles

Innovative products

and serviceportfolio

First Multi-Channel-

Provider fordigital and

physicalmail


AGENDA


1. FP and its Stratigic Intiatives


3. Tem sequi vullupt atiost sum ratiossum disestem4. Financial Statements Q1 2012




24.7 24.7

32.3 33.8

12.18.9

9.5 8.0

Q1 2008 Q1 2010 Q1 2011 Q1 2012

Non-Recurring RevenueRecurring Revenue

STRONG RECURRING REVENUE CHARACTERISES FP

Revenue on prior year's levelOperative growth of €1.5m mainly regarding Mail Services and SoftwareRamp-up of new factory causes order backlog of approx. €1.5mSales of franking machines weaker than prior year awaiting introduction of new product PostBase

41.841.80.0

€ million33.6

34.2


GROWTH OF SALES INTERNATIONAL

22.6 22.1

18.8 19.3

1.01.3

Q1 2011 Q1 2012

Sales Germany*

Sales International*

Production*(Sales Dealer)

Sales Germany*

Sales International*

Production*(Sales Dealer)

* Non-consolidated figures according local gaap.

€ million

41.8 41.8

Revenue by Segments

Increase in Sales InternationalSales Germany impacted by order back-log


ONE-OFF EFFECTS STRAINED EBITDA

€ million Q1 2012 Q1 2011 change%

Revenue 41.8 41.8 0.0

EBITDA before restructuring 4.1 6.5 -36.9as % of revenue 9.8 15.6

EBITDA 4.1 3.7 10.8as % of revenue 9.8 8.9

EBIT 1.8 0.1 n/a

Net profit/loss 0.7 -0.9 n/a

EPS (€) 0.04 -0.05 n/a

EBITDA in 2011 impacted mainly by one-off effects for restructuring of €2.7mImpacts on 2012 EBITDA:

End of Site Continuation agreement €0.5m (Standortsicherungsvertrag)Change in revenue structure in Mail Services causes increase of cost of materials of €0.7mTemporarily two production facilities cause impact of €1.0m


NEW PRODUCTION SITE IS THE BASE FOR FUTURE GROWTH

First Quarter 2012:

All production lines had been moved to Wittenberge and third party vendors (OptiMail30)

All production activities in Birkenwerder are closed

Caused by this move, the FP Group had somechallenges to overcome in the ramp-up of the new factory

Labour lawsuites are nearly finalised


PERSONNEL EXPENSES INFLUENCED BY ONE-OFF EFFECTS

14.815.3

12.713.6

Q1 2009 Q1 2010 Q1 2011 Q1 2012

No further provisions for restructuring in Q1/2012(€0.0m; previous year €1.2m)Less cost savings out of end of Site Continuations Agreement (€0.5m) Adjusted personnel expenses increased slightly due to higher number of employees (+2.7%)

€ million-0.5


AMORTISATION REGARDING COMPANY ACQUISITION FINALISED

3.13.1

0.7

2.43.0 3.02.5

Q1 2009 Q1 2010 Q1 2011 Q1 2012

Depreciation Amortisation Depreciation/Amortisation

Amortisation regarding company acquisition in the years 2005 and 2006 ended 2011Depreciation regarding R&D will increase in the course of 2012 due to the market introduction of PostBase

€ million


BALANCE SHEET SHAPED BY THREE MAJOR EFFECTS

70.8 76.2 70.9 71.1

62.3 62.746.3 48.7

19.215.9

2011 Q1 2012 2011 Q1 2012

Non-currentAssets

Assets Equity and Liabilities

CurrentAssets

Equity

Non-currentLiabilities

CurrentLiabilities

133.1 138.9 133.1 138.9Impact of provisions due to restructuring(€8.7m end of 2011, reduction regarding utilisation in Q1 2012of €1.9m) on current liabilitiesNon-current liabilitiesincrease from €46.3mto €48.7m due to increase in financial liabilities of €2.4mIncrease of equityas a result of capital increase and consolidated net profitEquity ratio of 13.8% (11.9 % end of 2011)

€ million


PROVISIONS DUE TO RESTRUCTURING

Provisions due to restructuring decrease in total from €8.7m end of 2011 by €1.9m to € 6.8 end of Q1 2012Cash out of severance payments of € 1.6mCash out regarding legal and consulting fees of €0.3m

1.6 1.60.5 0.2

4.96.5

2011 Q1 2012Vacation production hall Legal&Consulting Severance payments

8.7

6.8

€ millionUtilisation of

€1.9m


CASH POSITION IMPACTED BY LOAN AND EQUITY INCREASE

17.9 18.6 20.2 19.9

12.85.7

11.411.7

2009 2010 2011 Q1 2012

Restricted Cash Cash/Cash equivalents

29.631.4

25.9

31.2

Stronger cash position due to additional bank loan (€2.4m)and increase of equity (€3.5m)Cash out due to severance payments of €1.6mSlight Decrease of restricted cash (€0.3m)

€ million 5.3


FURTHER REDUCTION OF NET DEBT

25.730.031.7

41.0

2009 2010 2011 Q1 2012

Net Debt Q1 2012 in € million

Financial Liabilitities 39.6

Cash and Cash equivalents

13.9

(= 31.2 cash and cash equivalents- 19.9 restricted cash+ 0.7 securities+ 1.8 own shares)

Total 25.7

Financial liabilities includes borrowing of €38.1m (previous year: €44.0m) and liabilites from finance lease at €1.5m (previous year: €2.5m)Strong reduction of financial liabilities from €46.5m to €39.6m

€ million-15.3


12.0

-3.3

14.5

5.53.6

6.3

-0.3-3.4

13.44.9

0.3Free Cashflow

27

CASH FLOW SHOWS FIRST IMPACT OF SEVERANCE PAYMENTSCashflow development for the first quarters 2011 and 2012

Q1 2011 Q1 2012

Cash and cash equivalents at the

beginning of period

Cash Flow from operating

activities

Cash Flow from investing

activities

Cash Flow from financing

activities Cash and cash equivalents at the

end of period


end of period

Cash Flow from operating

activities

Cash Flow from investing

activities

Cash Flow from financing

activities

1.5Free Cashflow

* plus Change in cash and cash equivalents due to currency translation 2011: €-0.1m, 2012: €0.0m

Cash flow from operating activities burdened by €1.9m due to cash out regarding the utilisation of provisions for restructuring

-> adjusted FCF of €2.2m

€m

illio

n


beginning of period


0.51

0.90.4 0.6

1.10.1

1.41.0

0.5

1.40.6

0.7

0.31.5

0.3

Q1 2009 Q1 2010 Q1 2011 Q1 2012

R&D Leased Inventories Tangible assets Corporate acquisitions Intangible assets

FP GROUP IS INVESTING IN FUTURE GROWTH

2.4

3.4 3.4 3.4

€ million

Less investments in tools for PostBase and production site Wittenberge

Higher investments for US rental market

Investments in PostBase and De-Mail

0.1


AGENDA


1. FP and its Stratigic Intiatives


3. Tem sequi vullupt atiost sum ratiossum disestem4. Financial Statements Q1 2012




Positive effects of new production site and introduction ofPostBase will be seen from Q2 2012 onwards

Revenues will increase to €161m at least

EBITDA will grow to €25m at leastNo further negative impact through one-offs (productions facilities and order back-log)First positive impact of cost savingsSales start of PostBase

FP will earn EBIT of €12m (2011 €-1.3m)

Cash flow influenced by restructuring

GUIDANCE 2012

30


GOALS UNTIL 2014

175159.4

147.3

2010 2011 2014e

Revenue

30

21.5

26.8

2010* 2011* 2014e

EBITDA

FP Group is back on a profitable growth course

*Before restructuring

€ million € million


GOALS UNTIL 2014

16

-1.3

7.5

2010 2014e

EBIT

8

-4.6

2.7

2010 2014e

26

17.1

22.2

2010 2011 2014e

10

2.4

9.4

2010 2011 2014e

Net Profit/Loss

Oper. Cash Flow Free Cash Flow

2011

2011

€ million € million

€ million€ million


THREE REASONS TO INVEST IN FP

The FP group is the first multi-channel-provider for digital and electronic mail communication with an innovative product and services portfolio to fulfil customer needs worldwide

Clear strategy for further growth and profitability; not reflectedby current share price

Strong cash flow and profitable business model basedon a stable after-sales-business, thus generatinghigh percentage of recurring revenue


Thank you for your attention.

We will now answer your questions.

fp-francotyp.comF00.10 - Rev. 3.0

APPENDIX


MYMAILThe smallest postmanager of the world

USP:

Smallest digital franking machine

Ideal entry-level model – cleardisplay screen

Intelligent features ot frank letterslike a pro

Features:

Integrated scale

Interface to the computer

Compose advertisment text with thekeyboard, just like SMS


ULTIMAILProfessional franking – pulls out all the stops

USP:

Easily navigation of the variousoptions and registers

Back-lit displays completeinformation about every frankingoperation

Flexibility and variety

Features:

Letter feeder and sealer

Label dispenser

Automatic feeder


ULTIMAIL AND CENTORMAILProfessional Letter Handling for the lower B-Segment

USP:

Modular franking machine for userswith medium and higher mailingvolumes

Vertical envelope transport

Dymamic scale for true mixed mail

Features:

Ease of Use –Only one button to start

Touch Display to operate

Quiet in operation


ISIN: DE000FHP9000/DE000FPH9018

Segment: Prime Standard/ All Industrial

IPO: 30 November 2006

Reuters: FPHG.DE

Freefloat: 83.7%

Shares: 14.7 million/1.46 million

Free Float therein:

LRI Invest S.A. 9.52%*

3R Investments 9.03%

Amiral Gestion 9.00%

Alceda Fund Management SA 3.07%*

Eric Spoerndli 5.02%*

Treasury Stock 2.29%*These are data based on share capital of 14.7 million shares

FP STOCK INFORMATION


WORLDWIDE PRESENCE OF FP

= Countries in which FP is active

= FP centres (subsidiaries) (1)

= Points of Print (potential) or preferred partners= New markets/ Emerging markets

International presencecovered by high market entry barriers in core businessAsia-Pacific as emerging FP target marketActive in 11 countrieswith own subsidiariesand a worldwide dealer network with over1,000 employees

(1)USA, Germany, UK, The Netherlands, Canada, Italy, Belgium, Austria Singapore, Sweden, France


Hans Szymanski (right)CEO and CFO)

Member of the Board since Dec. 2008.Born in 1963, economics graduate, responsible for Finance, Accounting, Controlling, Human Resources, Legal and Compliance, IT, Research and Development, Quality Management, Production, Purchasing, Logistics, and Strategic Business Development.

Andreas Drechsler (left)CSO

Member of the Board since March 2009.

Born in 1968, bankingand business graduate,

responsible for Sales Germany and

International, Business Development and Product

Management, InternalAudit, Marketing and

Corporate Communications.


FINANCIAL CALENDAR

Interim Report 3M/Q1 2011 24 May 2012

Annual General Shareholders‘ Meeting 27 June 2012

Interim Report 6M/Q2 2011 30 August 2012

Interim Report 9M/Q3 2011German Equity Capital Forum (Frankfurt/Main)

12 – 14 November 2012


CONTACT

Sabina PrüserCorporate CommunicationVice President Investor Relations/ Public Relations

Francotyp-Postalia Holding AG

Telephone+49 3303 525 410Fax+49 3303 53707 410

[email protected]

AddressTriftweg 21-2616547 Birkenwerder

FP-Weblog: http://www.fp-francotyp.com/blogFP auf facebook: FP Francotyp-Postalia DeutschlandTwitter: FP Francotyp

Investor‘s Day 2012 Unaudited Financial Statements 1st ...1.6 1.6 0.5 0.2 4.9 6.5 2011 Q1 2012...

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