DGAP-News: Francotyp-Postalia Holding AG: Francotyp-Postalia Profits from High Growth in its Services

Francotyp-Postalia Holding AG / Quarter Results/Quarter Results

29.05.2008 

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 Profits from High Growth in its Services

  - Group revenue 36.8 million euros in Q1 2008 

  - Revenue in Mailstream segment nearly doubles

  - EBITDA increases to 6.8 million euros

  - Positive EBITDA contribution from young Mailstream business

  - Forecast confirmed for the full year 2008 

Birkenwerder, May 29, 2008. Francotyp-Postalia Holding AG, a worldwide
service provider for the outgoing mail market, posted revenue of 36.8
million euros for the first quarter of 2008 compared to 37.7 million euros,
reported for the same quarter of the previous year. At the same time, the
Company nearly doubled sales of its services, such as consolidation and the
outsourcing of outgoing mail. Revenue here rose to 3.9 million euros,
compared to 2.0 million euros for the first quarter of 2007. In the
Mailstream segment, the Company's subsidiary freesort had a major part in
this success, consolidating around 43 million letters in the first quarter
of 2008. That is over 50% more consolidated mail than for the whole of
2007, and represents a tripling of sales by this unit.

On the other hand, sales of franking and inserting machines in the
Mailstream segment fell to 32.9 million euros, compared to 35.7 million
euros for the same quarter last year. Apart from slow growth on the German
market, and a one-off project in the Netherlands that boosted figures in
the first quarter of 2007, this downturn was mainly due to the weaker US
dollar. Adjusted for the negative currency translation effect of 1.6
million euros, revenue reached 34.5 million euros.

Francotyp-Postalia Increases its Profitability

Despite the continuing weakness of the US dollar, Francotyp-Postalia
reported earnings before interest, taxes, depreciation and amortisation
(EBITDA) of 6.8 million euros for the first quarter of 2008, compared to
6.3 million euros for the same period last year. This represents an
increase of 2.1 million euros compared to the last quarter of 2007, where
EBITDA came to 4.8 million euros. For the first time, the FP Group is
reporting its operative figures in financial year 2008 separately from its
financial result. This is in line with the reporting standard of other
stock market listings, and results in greater transparency.

While the financial result for the first quarter of 2007 was positive at
1.1 million euros, the figure for the first quarter of 2008 came to -1.5
million euros, having a clearly negative effect. Here, too, this was mainly
due to the weaker US dollar which resulted in value adjustments having to
be made to the trade receivables of subsidiaries.

Mailroom Posts EBITDA Margin of 21.2% after Currency Translation

The positive development in operating profitability was underlined by a
higher EBITDA margin for the first quarter of 2008, now at 18.5%. This
compares to 17.0% for the first quarter of 2007 and just 11% for the fourth
quarter of 2007. As planned, the Mailstream segment, set up at the end of
2006, achieved an EBITDA result of 0.4 million euros, contributing
positively to the improved margin. In the first quarter of 2007, this
segment reported negative EBITDA of -0.2 million euros. Conversely, EBITDA
for the Mailroom segment came to just on 6.3 million euros for the first
quarter of 2008, compared to 6.4 million euros in the comparable period
last year. This is largely due to the negative currency translation effect
of 1.0 million euros. At the same time, the EBITDA margin increased from
17.9% in the first quarter of 2007 to 19.1% in the first quarter of 2008.
Adjusted for currency translation, EBITDA came to 7.3 million euros, an
increase of 14.1%, with an EBITDA margin of 21.2%.

The Company's CEO Dr. Heinz-Dieter Sluma sees business growth in the
service sector and the group-wide improvement in profitability in a
positive light: 'Following two weak quarters in 2007, the FP Group has made
a good start to the new year. Comparing business with the fourth quarter of
2007 alone, we have greatly improved EBITDA,' explained Dr Sluma. 'However,
we do see the need to grow profitability in our classic business.' Over the
coming months, the Company will promote measures to improve efficiency and
reduce costs. As well as optimising processes in research and development,
this will involve improvements to the supply chain and tighter
administration.

0BForecast Confirmed

The FP Group is confirming its forecast for the full year 2008 made at the
end of February 2008: In that forecast, the Company predicts sales of
between 150 to 160 million euros and an EBITDA of between 22 and 26 million
euros. The Company's service business is expected to remain the driving
force for growth in the coming quarters. Additional growth is expect to be
gained from synergetic effects between the traditional Mailroom and the new
Mailstream businesses, as well as much stronger sales orientation
throughout the Company. 'The FP Group will continue to become a
comprehensive service provider for the outgoing mail market in 2008. Over
the coming years, our tailored Mailstream services will greatly increase
their revenues and earnings results,' emphasized Dr. Sluma.

Full details on the quarterly results are available on our website at:

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

The FP Group in brief

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 businesses of all sizes
individually tailored mailstream services. Today, the Group has its own
branches in many industrialised countries and a worldwide market share of
over 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
sales of 145.1 million euros and an EBITDA of 26.3 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 



DGAP 29.05.2008 
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------