Francotyp-Postalia Holding AG — Earnings Release 2009

Aug 27, 2009

News Details

Corporate | 27 August 2009 06:00

Francotyp-Postalia Holding AG: Francotyp-Postalia Results Stabilize Close to Previous Year’s Levels

Francotyp-Postalia Holding AG / Half Year Results/Half Year Results

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Francotyp-Postalia Results Stabilize Close to Previous Year's Levels

• FP Group reports revenue of 66.8 million euros for first six months of
  2009
• EBITDA at 9.5 million euros, close to previous year's level
• Management forecasts sales of 133 to 136 million euros for full year,
  with EBITDA at 19 to 21 million euros, excluding restructuring charges

Birkenwerder, 27th August 2009. Francotyp-Postalia Holding AG, a worldwide
service provider for the outbound mail market, is reporting revenue of 66.8
million euros for the first six months of 2009, compared to 72.7 million in
the previous year. Despite this downturn, the Company achieved an EBITDA of
9.5 million euros in what remains an extremely difficult economy. This
figure is nearly the same as last year's figure of 9.8 million euros. In
the second quarter of 2009, the FP Group achieved an EBITDA of 4.2 million
euros, a significant increase of 35 percent, despite revenue falling by
around 10 percent to 32.6 million euros. Net income was also stable at -4.8
million euros compared to the previous year (-4.7 million euros).

Higher Proportion of Recurring Revenue

In particular, new business in the traditional Mailroom segment has been
hit by the recession. Revenue in this segment fell in the first six months
of 2009 to 59.0 million euros, compared to last year's figure of 65.2
million euros. However, recurring revenue accounted for 41.8 million euros
in the reporting period, slightly higher than the previous year's level of
41.5 million euros. This income is mainly generated by service contracts
for over 265,000 franking machines in operation worldwide, the consumables
they need, and from rental business. 'The high level of recurring revenue
underlines the strength of our business model,' commented Andreas
Drechsler, member of the Management Board of the FP Group.

Recurring revenue is a major factor in Germany, the Company's most
important market. Despite the big dip in the economy, revenue in Germany
remained relatively stable at 22.0 million euros, compared to 23.6 million
for the same reporting period last year. In the biggest international
market, the US, revenue even increased slightly from 16.5 million in the
first six months of 2008 to 16.8 million for the same period in 2009. This
is largely due to currency exchange effects. In its Mailstream segment, the
FP Group increased revenue in the first half of 2009 to 7.9 million euros,
compared to 7.5 million for this period last year. Here, the Company's
subsidiary freesort accounted for 5.7 million euros, while the subsidiary
iab contributed a further 2.2 million euros.

Successful Cost Management Throughout

Strict cost management, together with restructuring measures introduced in
2008, have resulted in greatly reduced costs in the first half of 2009. As
a result of the measures, expenses for research and development fell to 4.7
million euros, compared to 6.0 million for the first half of 2008.
Personnel expenses were also down at 26.9 million euros, compared to 28.9
million for the same reporting period in the previous year. And with
revenue lower, the strict discipline applied throughout led to material
costs falling to 17.6 million euros, compared to 23.7 million euros for the
first half of 2008. By the same token, the ratio of material cost to sales
fell from 32 percent to 26 percent during the reporting period.

Thanks to these lower costs, the FP Group managed to stabilize results,
achieving close to last year's figures despite the downturn in revenue.
Earnings before interest, tax, depreciation and amortization (EBITDA) came
to 9.5 million euros, compared to 9.8 million euros for the first six
months of 2008. Adjusted for restructuring costs of 0.7 million euros,
operating profit came to 10.2 million euros. Consolidated net income
remained almost unchanged at -4.8 million euros, compared to -4.7 million
euro for the first half of 2008.

Outlook: FP Group Expects Year-End EBITDA Close to Previous Year

Greatly improved cost structures and stable recurring revenue means that
the FP Group can now make an initial forecast for the full financial year
2009. In its prognosis, the Company expects revenue to reach between 133 to
136 million euros, with EBITDA before restructuring charges coming to
between 19 to 21 million euros. 'In the most severe recession of the
post-War era, we expect to achieve a positive EBITDA result, with figures
reaching almost the same level as the previous year,' stated CFO Hans
Szymanski. He also referred to the comprehensive programme started at the
beginning of August to ensure site viability, and to successes achieved
through restructuring: 'In 2009, we effectively laid the foundation stone
for what will be a long-term, profitable future for our Company.'

Further information available at: www.francotyp.com

Contact
Francotyp Postalia Holding AG
Investor Relations
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410

E-mail:s.prueser@francotyp.com

The FP Group in Brief

Francotyp-Postalia Holding AG (FP Group) is a leading manufacturer of
franking machines covering the whole value added chain in the outbound mail
market. Its products and services range from franking and inserting
machines to the collection, sorting and consolidation of outbound mail, as
well as electronic hybrid mail solutions offering 21st century mail
processing. With its headquarters in Birkenwerder near Berlin, the FP Group
offers businesses of all sizes individually tailored mail management
solutions. The FP Group has local branches in many industrialised countries
and currently holds over 9% of the worldwide franking machine market. With
a corporate history extending back over 85 years, today the FP Group is
profiting from the growing liberalisation of mail markets and the
increasing interest of businesses to delegate their outbound mail
operations to professional service providers. In financial 2008, the Group
employed around 1,100 people, with revenue of 142.4 million euros and an
EBITDA of 18.2 million euros.

Contact:
Francotyp-Postalia Holding AG
Media Relations
Telefon: +49 (0)3303 525 777
Telefax: +49 (0)3303 53 70 77 77
E-Mail: pr@francotyp.com

27.08.2009 Financial News transmitted by DGAP

Language: English
Issuer: Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Deutschland
Phone: +49 (0)3303 525 777
Fax: +49 (0)3303 53 70 77 77
E-mail: ir@francotyp.com
Internet: www.francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart

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