Francotyp-Postalia Holding AG — Earnings Release 2008

Feb 24, 2009

News Details

Corporate | 24 February 2009 06:21

Francotyp-Postalia Holding AG: Results for Financial Year 2008

Francotyp-Postalia Holding AG / Preliminary Results/Preliminary Results

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Francotyp-Postalia: Results for Financial Year 2008

• Group revenue at 142.4 million euros slightly down on previous year
• Mailstream revenue up by around 80%
• Restructuring affecting results
• EBITDA reaches 17.5 million euros

Birkenwerder, February 24, 2009. Francotyp-Postalia Holding AG, a worldwide
service provider for the outgoing mail market, has issued its provisional
figures for the financial year 2008. Consolidated revenue came to 142.4
million euros, slightly down on the previous year's figure of 145.1 million
euros. Revenue in the last quarter of 2008 reached 36.2 million euros,
around the same level as the previous year.

The main factors for this downturn in revenue were the unfavourable
exchange rates in the FP Group's foreign markets. Weakness in the US
dollar, the British pound and the Canadian dollar had a negative effect on
revenue amounting to around 4.9 million euros for the year. When currency
exchange effects are factored out, total revenue came to 147.3 million
euros.

Mailstream Reporting Strong Growth

The Mailstream segment developed convincingly in 2008. Revenue rose in 2008
to 15.4 million euros, compared to 8.5 million euros in the previous year.
In this segment, the Company is concentrating on the German postal market,
completely liberalized at the beginning of 2008, and is profiting from the
early expansion of this part of its business.

In the Mailroom segment, expectations for 2008 were not fulfilled. The
Company is reporting sales of franking and inserting machines totalling
127.0 million euros, compared to 136.6 million euros for the previous year.
While sales fell especially in the USA, Canada and the Netherlands,
Mailroom sales in Germany and the rest of the European market were stable,
despite the unfavourable economy. In England, on the other hand, business
has grown.

Restructuring Affecting Results

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in
the reporting year came to 17.5 million euros according to the provisional
figures. This compares with 25.2 million euros for the previous year. When
restructuring costs are factored out, the FP Group achieved an EBITDA of
21.5 million euros in 2008. Restructuring costs of 4.0 million euros
include expenses charged to the MOVE Project, as well as compensation paid
to former members of the Management Board.

With its MOVE program, the FP Group is currently improving processes in its
Mailroom business. The Company intends to greatly reduce delivery times, at
the same time cutting process costs in production and dispatch. In
administration, too, the Company is streamlining processes in order to
reduce personnel expenses.

Market Environment Remains Challenging

As of the beginning of this year, the recession continues to affect the FP
Group's main markets. It is currently impossible to predict whether, and
how quickly, the economy will improve in these markets during 2009. This
means that no quantitative forecast can be made for the current financial
year at present. The Mailroom segment as a new business area is
particularly dependent on the global economy and how exchange rates
develop. However, the fact that around two-thirds of revenue is based on
recurring revenue does give the business a certain degree of overall
stability. With its Mailstream segment and its integrated mail management
solutions, the Company is profiting from the readiness of corporate
customers to invest in cost-saving solutions which also provide greater
efficiency.

Francotyp-Postalia Holding AG will be presenting its audited final results
for the financial year 2008 on April 28, 2009.

Contact

Francotyp Postalia Holding AG
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. Headquartered in Birkenwerder near Berlin, the FP Group offers
businesses of all sizes individually tailored mailstream services. 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 80 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 2007, the Group employed around 1,100 people, with revenue of
145.1 million euros and an EBITDA of 25.2 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

24.02.2009 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, Stuttgart, München, Düsseldorf

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