MaltaPost Plc

Interim / Quarterly Report • May 9, 2013

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by MaltaPost p.l.c. pursuant to the Malta Financial Services Authority Listing Rules:

QUOTE

At a meeting of the Board of Directors of MaltaPost p.l.c. held on 9 May 2013, the Board approved the attached Unaudited Condensed Interim Financial Statements for the six month period ended 31 March 2013.

These Unaudited Interim Financial Statements for the period ended 31 March 2013, are available for viewing and download from the Company's website www.maltapost.com

UNQUOTE

Graham A. Fairclough Company Secretary

Basis of preparation

These condensed interim financial statements have been prepared in accordance with hernational These Condensed 34 - Interim Financial Reporting, have been extracted from the Company Incom Accounting Standard 54 - - meetim Phonout 10 March 2013 and have been reviewed in terms of ISRE unadited accounts for the 5x monaformation Performed by the Independent Auditor of the Entity". 24.0 Review of interim indial of the interim financial statements are consistent with The accounting policies ascanial statements for the year ended 30 September 2012. The half-yearly those used in the annual midrope of Chapter 5 of the Listing Rules of the Malta Financial Services Authority.

Review of Performance

Overall economic conditions remained subdued during the six months under review. I vonetheless, Overall Economic conditions remains over the performance over the corresponding period last results of the Company maloute and costs brought about by changes in the inter-operator fees year. The negative impact onion has been somewhat compensated for by an increase in certain tariffs.

Traditional mail volumes remain on the decline due to the negative impact of e-substitution which has I rautional mail volunce increase in parcel business generated through e-commerce.

For the six months ended 31 March 2013, the Company registered an increase in profit be for boy For the six months ended to €0.8 million for the corresponding period last year. Other key indicators underlying these interim financial results are as follows:

• · Turnover increased by 2.5% to €11.3 million (2012: €11.0 million). Traditional mail volumes runnover increased by Enclose. The decline in volumes was partly mitigated by the review in tariffs of certain services effective mid-November 2012;
• · Expenses increased marginally by 1.4% to €10.4 million (2012: €10.3 million);
• · Net finance income increased to €125k (2012: €36k);
• · Cost to Income ratio stood at 87.6% (2012: 87.9%);
• · Shareholders' funds increased by 2.9% to €16.0 million (2012: €15.6 million).

Outlook

The highly competitive market calls for the Company to expand and diversify its portfolio of me inginy composition of 'SendOn' towards the end of the last financial year proved to be Services: The Introduction of be followed by other enhanced services that complement the growing e-commerce market.

As announced the Company shall enter the insurance sector once the necessary regulatory approvals are issued.

The process of finalising the necessary investment for the expansion of services in connection rile process of management and hybrid mail is set to be largely completed within the current financial year.

Whereas the pressure on costs will be partly mitigated by the increase in certain tariffs effective from 1 April 2013, the letter mail sector remains challenging both financially as well as operationally. It is therefore a priority for MaltaPost to enhance its product offering as well as diversify its operations while creating alternative revenue streams. This will ensure that the Company remains a robust postal operator providing a service that is affordable as well as efficient.

MaltaPost p.l.c.

Preliminary Statement of Half yearly Results For the six months ended 31 March 2013

Condensed Interim Statement of Financial Position As at 31 March 2013

	31 Mar 13 € 000 Unaudited	30 Sep 12 € 000 Audited
ASSETS
Non-current assets	6	યેરે
Intangible asset Property, plant and equipment	9,922	10,163
Available-for-sale financial assets	1,940	2.385
Deferred income tax asset	434	388
Total non-current assets	12,302	12,981
Current assets
Inventories	575	635
Trade and other receivables	6,831	5.013
Current income tax asset	313	799
Available-for-sale financial assets	917	412
Deposits with financial institutions		3.000
Cash and cash equivalents	6,036	6,133
Total current assets	14,672	15.992
	26,974	28,973
Total assets
EQUITY AND LIABILITIES
Capital and reserves
Share capital	8,554	8,172
Share premium	3,439	2.752
Other reserves	130	94
Retained earnings	3,908	4.557
Total equity	16,031	15,575
Non-current liabilities		1.503
Provision for liabilities and charges	1,539
Current liabilities
Trade and other payables	9,404	11.895
Total liabilities	10,943	13,398
	26,974	28.973
Total equity and liabilities

The sondensed interim financial statements were authorised for issue by the Board of Directors on 9 May 2013 and were signed by:

David Stellini Director

Joseph Said Chairman

Condensed Interim Income Statement For the six months ended 31 March 2013

	01 Oct 12	01 Oct 11
	to	to
	31 Mar 13	31 Mar 12
	€ 000	€'000
	Unaudited	Unaudited
Revenue	11,299	11,023
Employee benefits expense	(5,617)	(5,390)
Depreciation and amortisation expense	(513)	(581)
Other expenses	(4,278)	(4,292)
Operating profit	891	760
Net finance income	125	36
Profit before tax	1,016	796
Tax expense	(359)	(294)
Profit for the financial period	657	502
Earnings per share	€0.02	€0.02

Condensed Interim Statement of Comprehensive Income For the six months ended 31 March 2013

	01 Oct 12	01 Oct 11
	to	to
	31 Mar 13	31 Mar 12
	€ 000	€ 000
	Unaudited	Unaudited
Comprehensive income
Profit for the financial period	657	502
Other comprehensive income
Fair value movement on available-for-sale
financial assets	36	(26)
Total comprehensive income for the financial period	ર્ભ્તિક	476

Condensed Interim Statement of Changes in Equity For the six months ended 31 March 2013 (Unaudited)

	Attributable to equity shareholders
	Share capital €'000	Share premium €'000	Other reserves €'000	Retained earnings €,000	Total €'000
Balance at 1 October 2011	7,920	2,014	98	4.497	14.529
Comprehensive income Profit for the financial period				502	502
Other comprehensive income Fair value movement on available-for- sale financial assets			(26)		(26)
Total comprehensive income			(26)	502	476
Transactions with owners Increase in share capital	252				252
Allotment of shares		738			738
Dividends				(1,267)	(1,267)
Total transactions with owners	252	738		(1,267)	(277)
Balance at 31 March 2012	8,172	2,752	72	3,732	14,728
Balance at 1 October 2012	8,172	2,752	94	4,557	15.575
Comprehensive income Profit for the financial period				657	657
Other comprehensive income Fair value movement on available-for- sale financial assets			36		36
Total comprehensive income			36	657	633
Transactions with owners Increase in share capital	382				382
Allotment of shares		687			687
Dividends				(1,306)	(1,306)
Total transactions with owners	382	687		(1,306)	(237)
Balance at 31 March 2013	8,554	3,439	130	3,908	16,031

Condensed Interim Statement of Cash Flows For the six months ended 31 March 2013

	01 Oct 12	01 Oct 11
	to	10
	31 Mar 13	31 Mar 12
	€'000	€ 000
	Unaudited	Unaudited
Cash flows from operating activities	9,383	8.978
Cash receipts from customers		(7,520)
Cash paid to suppliers and employees	(9,495)	1,733
Cash flows attributable to funds collected on behalf of third parties	(2,382)
Cash flows (used in) / generated from operating activities	(2,494)	3,191
Net income tax refunded / (paid)	84	(251)
Net cash (used in) / generated from operating activities	(2,410)	2.940
Cash flows from investing activities
Finance income	154	130
Purchase of property, plant and equipment	(582)	(936)
Purchase of financial assets	(437)
Proceeds on maturity / disposal of financial assets	412	971
Proceeds on maturity of deposits with financial institutions	3,000
Net cash generated from investing activities	2,547	165
Cash flows from financing activities
Finance cost		(80)
Dividends paid	(234)	(275)
Repayment of borrowings		(1,307)
Net cash used in financing activities	(234)	(1.662)
Net movement in cash and cash equivalents	(97)	1.443
Cash and cash equivalents at beginning of financial period	6,133	3,755
Cash and cash equivalents at end of financial period	6,036	5.198

Statement pursuant to Listing Rules issued by the Listing Authority

I confirm that to the best of my knowledge:

• · The condensed interim financial statements, prepared in accordance with IAS 34 give a true and frie condensed fincentify hosition as at 31 March 2013, financial performance and cash flows for the period then ended, and conform with the requirements of the accounting standards the period then chaea, un the EU for interim financial statements, including adopted IAS 34: Interim Financial Reporting; and
• · Thandlar neport includes a fair review of the information required in terms of the Listing Rules.

Joseph Gafa' Chief Executive Officer

Independent auditor's report

To the Board of Directors of MaltaPost p.I.c.

Report on Review of Condensed Interim Financial Information

Introduction

We have reviewed the accompanying condensed interim statement of financial position of MaltaPost n.l.c. as at 31 March 2013, the related condensed income statements of comprehensive income, changes in equity and cash flows for the six-month period then ended (the interim financial information'). The directors are responsible for the preparation and fair presentation of this interime financial information in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34 Interim Financial Reporting'). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for tinancially and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

This report, including its conclusion, has been prepared for the purpose of the Listing This report, nolding to ocholder, a Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report fis shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting'.

PricewaterhouseCoopers

78 Mill Street Oormi Malta

Fabio Axisa Partner

9 May 2013

The maintenance and integrity of the MaltaPost p.l.c. website is the responsibility of the Company, the work carried out by the a | occurred to the condensed interim financial information since this was initially presented on the website.

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