Francotyp-Postalia Holding AG — Earnings Release 2010

Nov 18, 2010

News Details

Corporate | 18 November 2010 07:00

Francotyp-Postalia Holding AG: Francotyp-Postalia updates its forecast for 2010

Francotyp-Postalia Holding AG / Key word(s): Quarter Results/Quarter Results

18.11.2010 07:00

Francotyp-Postalia updates its forecast for 2010

• Company now expects revenue for the current year between 140 million
  euros and 145 million euros with EBITDA between 24 million euros and 26
  million euros before restructuring

• Sales revenue and nine-month consolidated net income considerably
  improved compared to previous year

• Company plans to restructure its production area

Birkenwerder, 18th November 2010. Francotyp-Postalia Holding AG, a global
services provider active in the mail processing segment, has announced its
third quarter 2010 figures and has revised its forecast upwards for the
full year. The Company now expects to close 2010 with revenue between 140
million euros and 145 million euros and EBITDA between 24 million euros and
26 million euros (excluding restructuring charges). Due to the planned
restructuring of its production area, the Company has made a provision in
the third quarter of 2010 of 1.3 million euros to cover related charges.

The FP Group greatly improved its earnings ability in the first nine months
of the current year, despite increased material expenses. The Company's
EBITDA result improved to 18.9 million euros, compared to 14.2 million
euros for the comparable period of 2009. After allowing for restructuring
charges of 1.3 million euros, the FP Group achieved an EBITDA result of
20.2 million for the first three quarters of 2010.

The FP Group has also greatly improved consolidated net income. Positive
developments in the previous quarters continued in the third quarter 2010.
Whereas the Company reported flat net income in the second quarter of 2010,
by the third quarter of 2010 consolidated net income came to 1.6 million
euros. The result for the same reporting period of the previous year was
negative at -1.6 million euros. Regarding the first nine months of 2010,
the Company posted consolidated net income of 0.8 million euros, compared
to a consolidated loss of -6.5 million for the same period of the previous
year.

Free cash flow, the difference between cash inflow from operations and cash
outflow from investment activity, rose during the first nine months of 2010
to 7.4 million euros, compared to 5.5 million euros for the same period of
the previous year.

Increased sales revenue due to changes in sales tax rules in Germany

The FP Group reported revenues of 105.8 million euros for the first three
quarters of 2010, compared to 97.3 million euros in the same period of the
previous year. Apart from a general improvement in the global economy and
the Company's declared strategy to move forward into the future as a
service provider, increases revenues were also due to a change in the
declaration process as part of the new sales tax rules (VAT) for postal
services in Germany which came into force on 1st July 2010. As a result,
the FP Group reported revenue of 39.8 million euros in the third quarter of
2010, compared to 30.4 million euros in the third quarter of 2009. The
positive revenue effect due to the new tax legislation was also reflected
in the increase in revenue from recurring revenues, amounting to 79.5
million euros during the first nine months of 2010 as against 72.5 million
euros for the same nine months of 2009. In addition to the Company's mail
processing services, a sustained upturn in revenue came from service
agreements, rental business, teleporto, the sale of consumables and
software solutions.

Future ability of the FP Group

'The results of the first nine months show that our Company is on a good
path. Nevertheless, we must implement the planned restructuring of our
production area successfully if we are to safeguard the FP Group's
long-term future,' declared Hans Szymanski, the Company's CFO.
Francotyp-Postalia is planning to restructure its production area, where a
total of 120 staff is employed. This will involve partial closures of
individual production areas, as well as other restructuring measures.

Contact

Francotyp-Postalia Holding AG

Corporate Communication

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 1,000 people, with revenue of 129.0 million euros and an
EBITDA of 20.6 million euros.

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Language: English
Company: 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 München, Berlin, Düsseldorf, Stuttgart

End of Announcement DGAP News-Service

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