DGAP-News: Francotyp-Postalia Holding AG: FP Group investing in future growth in 2014

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DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Half Year
Results/Half Year Results
Francotyp-Postalia Holding AG: FP Group investing in future growth in
2014

28.08.2014 / 06:24

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Corporate News
FP Group investing in future growth in 2014

  - Revenue reaches EUR 84.6 million in first half of 2014

  - EBITDA slightly up to EUR 11.8 million despite strong euro

  - Investments up in first half of 2014 to EUR 8.6 million

  - As projected, free cash flow at EUR -1.1 million

  - Net debt of FP Group reduced to EUR 11 million

Birkenwerder, 28 August 2014. As expected, the half-year financial
statements of Francotyp-Postalia Holding AG, the multi-channel provider for
mail communication, were dominated by increased investments in future
growth. In the first half of 2014, investments amounted to EUR 8.6 million
compared to EUR 7.3 million in the same period of the previous year. In
line with the increased investments, free cash flow amounted to EUR -1.1
million compared with EUR 0.3 million in the same period of the previous
year.

Currency effects influence revenue and income

The continued strength of the euro made its effect felt in operations.
Overall, revenue amounted to EUR 84.6 million in the first half of 2014
compared with EUR 85.5 million in the year earlier period, whereby revenue
was depressed by exchange rate effects of EUR -0.9 million. A downward
trend in product revenues was balanced by increased recurring revenues,
especially in the software and mail service business.

EBITBA for the first six months of 2014 improved to EUR 11.8 million,
against EUR 11.5 million for the same period in 2013; the EBITDA margin
increased to 14 percent. An even greater improvement was prevented by
currency effects totalling EUR -0.6 million. In view of increased
writedowns due to the successful exchange business in leased machines in
the USA, EBIT was only slightly below the previous year's EUR 5.9 million.
The consolidated net income increased to EUR 2.9 million, following EUR 3.2
million in the first half of 2013.

Growth in revenue projected to reach at least EUR 173 million

In view of a first half business performance that was largely in line with
expectations, the FP Group continues to assume that its ambitious targets
for 2014 - before adverse exchange rate effects - can be reached.
Discounting currency effects, the Group is aiming for revenue growth to at
least EUR 173 million and improvements in the EBITDA and the EBIT to at
least EUR 25 million and EUR 12 million respectively. This profitable
growth is contingent on conditions in the second half continuing to develop
in line with expectations and on sales and sales initiatives taking effect.
The FP Group is currently developing a dealership sales channel in its
German home market and is promoting the sales of its franking machines in
the US lease market. Furthermore, the Group is at present very successfully
introducing its PostBase franking system in Italy - also in the form of a
leasing business. In addition, the launch of PostBase is planned in France,
Europe's largest franking machine market, likewise as a purely leasing
business. In view of the associated investments, the Group is projecting a
non-recurring negative free cash flow of EUR -2 million for 2014.

"2014 will be entirely dominated by investments in future growth," says
FP's CEO Hans Szymanski. However, it is not yet possible to quantify to
what extent these investments will start to pay off in the coming year and
thus make the required contribution to achieving the medium-term targets
for 2015. The Management Board is assuming that there will be an
improvement in the operational result in the coming year, whereby it is
unlikely that the EBITDA target of EUR 30 million will be fully met in
2015. The medium-term targets primarily provide a clear perspective of the
opportunities open to the FP Group after achieving an increase in revenues
and successful restructuring. Szymanski noted: "We are now realising these
opportunities step-by-step, thus enhancing the financial and earning
capacity of our Group."

Szymanski is convinced that the successes in the major leasing markets and
in the promising software and mail services business primarily demonstrate
that: "Even if we need a little more time in some places, FP's strategy is
working. And this creates a solid basis for shareholders to share in the
Group's success in the form of dividends into the future."

Quarterly figures at a glance:

<pre>

in EUR million                   Q2 2014          Q2 2013          Change
Revenue                             40.2             42.0           - 4.3%
EBITDA                               5.1              5.3           - 2.6%
EBIT                                 2.0              2.5          - 19.1%
Consolidated net income              1.0              1.0           + 0.1%
EPS (EUR)                           0.07             0.06          + 16.7%
Free cash flow                      -2.8             -0.8              n/a


</pre>

Half-yearly figures at a glance:

<pre>

in EUR million                   H1 2014          H1 2013          Change
Revenue                             84.6             85.5           - 1.0%
EBITDA                              11.8             11.5           + 2.4%
EBIT                                 5.7              5.9           - 3.4%
Consolidated net income              2.9              3.2           - 9.6%
EPS (in EUR)                        0.18             0.21          - 14.3%
Free cash flow                      -1.1              0.3              n/a


</pre>

Contact

Francotyp-Postalia Holding AG
Corporate Communications
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-Mail: s.prueser@francotyp.com

About Francotyp-Postalia Holding AG
The FP Group is the first multi-channel provider for mail communication.
The globally active company offers the entire range of products and
solutions for business and private customers.  In addition to standard
machines for franking and inserting mail, its offering includes services
such as the collection of business mail and innovative software solutions
such as the fully electronic letter. The FP Group, based in Birkenwerder
near Berlin, can therefore provide tailored multi-channel solutions. The
Group currently operates its own branches in a number of industrialised
countries and holds a global market share in franking machines of around
10%. With a history dating back 90 years, the FP Group today benefits
across all markets from the increasing liberalisation of postal markets and
the readiness of companies to outsource their business mail to professional
service providers. In the 2013 financial year, the company generated
revenue of EUR 168.9 million. The FP Group employs around 1,100 people
worldwide.



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Language:    English                                                
Company:     Francotyp-Postalia Holding AG                          
             Triftweg 21-26                                         
             16547 Birkenwerder                                     
             Germany                                                
Phone:       +49 (0)3303 525 777                                    
Fax:         +49 (0)3303 53 70 77 77                                
E-mail:      ir@francotyp.com                                       
Internet:    www.fp-francotyp.com                                   
ISIN:        DE000FPH9000                                           
WKN:         FPH900                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
 
 
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