Francotyp-Postalia Holding AG / Final Results/Final Results 24.04.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Francotyp-Postalia Sees Growth Opportunities in Liberalised Mail Markets despite a very difficult year in 2007 - Presentation of Annual Report 2007 - Proposed dividend of 0.15 per share for 2007 - Revenues and EBITDA forecast confirmed for 2008 - Mailstream services expected to boost value added Birkenwerder, April 24, 2008. Francotyp-Postalia Holding AG, a worldwide service provider for the outgoing mail market, presents its annual report 2007 today. The report contains no significant changes to the provisional figures released on February 26, 2008. Despite difficult operating conditions, Francotyp-Postalia increased revenues during the fiscal year 2007 by 1.5% to 145.1 million, compared to 142.9 million in the previous year. The Company achieved this growth mainly due to the growth of its services segments such as consolidation and outsourcing of outgoing mail. In its Mailstream segment, revenues increased by 39.3% to 8.5 million compared to 6.1 million in financial 2006. Revenues of franking and inserting machines fell slightly to 136.6 million in 2007 compared to the previous year. This decline was mainly due to the slowing down of the US economy and a weaker dollar. These effects, combined with the planned start-up losses in the Mailstream segment overweighted the positive performance from the UK and The Netherlands, which led to a decrease in earnings before interest, taxes, depreciation and amortisation (EBITDA) to 26.3 million, compared to 32.0 million for the previous year. Based on these figures, the FP Group achieved an EBITDA margin of 18.1%, in the mailroom business, however, the EBITDA margin remained above 20%. Net income came to -2.8 million, compared to -0.3 million for financial 2006. Consolidated net income excluding amortisation of acquisition expenses came to 10.3 million. Nevertheless, the Supervisory Board and the Management Board - the latter under the chairmanship of Dr. Heinz-Dieter Sluma since January 1, 2008 - will propose a dividend of 0.15 per share to the General Meeting to be held on June 18, 2008. That is a dividend yield on the share trading price on April 23, 2008 of 4.6% FP Groups Tunes its Strategy to the Future In his first 100 days, Dr. Sluma carried out an extensive review of the FP Group and outlined the key milestones of its future strategy. The core business of the company remains the mailroom business. From 2008 onwards however, the Company will concentrate more strongly on the synergies resulting from the combination of its Mailroom and Mailstream offerings, thus enhancing its role as a service provider for the outgoing mail market. While the Mailroom business represents a business with stable cash flows and margins, with its Mailstream services the FP Group is profiting from the growing interest among businesses to hand over their outgoing mail operations to professional service providers now that the German post market has been liberalised. The market for consolidation of outgoing mail is currently growing at around 50% per year. The FP Group already has the necessary competences: With around 265,000 franking machines installed in over 80 countries, the Company has a 9% share worldwide in this core value added segment of the outgoing mail market. In Germany, the Company is the clear market leader, with a share of around 45%. Additionally, the Company operates 9 consolidation centres processing outgoing mail which dealt with some 41 million letters in the first quarter of 2008 alone. This is all backed up by the FP Group's highly innovative solutions for outsourcing and hybrid mail. 'We are bundling our competences in 2008 so that we can provide every company with its own specially tailored solution for outgoing mail,' explained Dr. Sluma. Comprehensive Programme to Improve Efficiency In his first 100 days in office, the new Chairman of the Management Board also introduced a comprehensive programme to improve efficiency, especially in the Mailroom business. Initial measures include optimising processes in research and development, improvements to the supply chain management and tighter administration. Due to the non-recurring charges that these restructuring measures will involve, the Company is expecting no positive effect in 2008. However, from 2009 onwards the Company predicts annual savings between 3 to 5 million as a result of this program. 'With the introduction of these measures, we will benefit from the expected growth over the coming years and will experience a sustained increase in profitability,' explained Dr. Sluma. This new strategy will first take full effect from 2009 onwards. Therefore the Company purposely issued a conservative forecast for financial 2008 when presenting its provisional figures. In its forecast, the Company expects revenues between 150 to 160 million and EBITDA between 22 and 26 million. Detailed comments are available at our website: http://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 About the FP Group With its products and services, Francotyp-Postalia Holding AG covers the whole value added chain in the outgoing mail market. Its products and services range from franking and inserting machines, the collection, sorting and consolidation of outgoing mail to electronic hybrid mail solutions providing 21st century mail processing. With its headquarters in Birkenwerder near Berlin, the FP Group offers business customers of all sizes individually tailored Mailstream solutions. Today, the Group has its own branches in many industrialised countries and a worldwide market share of more than 9% for franking machines. With a history stretching back 80 years, today the FP Group is profiting in all its markets from the increasing liberalisation of mail markets and the growing interest among businesses to hand over their outgoing mail operations to professional service providers. In financial 2007, the Company employed around 1,100 people and achieved revenues of 145.1 million and an EBITDA of 26.3 million. 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 DGAP 24.04.2008 --------------------------------------------------------------------------- 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 End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Francotyp-Postalia Holding AG: Francotyp-Postalia Sees Growth Opportunities in Liberalised Mail Markets
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