FP GROUP RETURNS TO PROFITABILITY IN A CHALLENGING YEAR

Preliminary results for 2012:

• Revenue grows 3.9% to EUR 165.6 million
  
• EBITDA increases 45.0% to EUR 19.0 million
  
• Consolidated net income improves to EUR 3.5 million compared with EUR -4.6 million in the previous year
  

Outlook for 2013: Revenue of at least EUR 168 million and EBITDA of at least EUR 22 million expected.

The Francotyp-Postalia Group, the first multi-channel provider for mail communication, returned to profitability in a challenging year in 2012, laying the foundation for sustainable and profitable growth in the years to come. In 2012, the FP Group completed the restructuring of its production, opened a new central production site in Wittenberge, Brandenburg, resolved initial challenges in the supply chain and realigned its sales force in the German domestic market.

Substantial increases in recurring revenue

Notwithstanding all the challenges it faced, the FP Group increased its revenue (based on preliminary figures) to EUR 165.6 million in 2012 after EUR 159.4 million in the previous year. Of this, recurring revenue increased to EUR 132.1 million compared with EUR 124.9 million in the previous year. This revenue comes from the growing Mail Services and Software business and service agreements, teleporto and consumables for the approximately 243,000 franking machines worldwide as well as the leasing of franking machines. At EUR 33.5 million, revenue from product sales was down on the previous year’s figure of EUR 34.4 million also as a result of the temporary challenges in production.

Thanks to restructuring production, the FP Group significantly reduced staff expenses over the course of 2012. This figure dropped to EUR 53.4 million compared with EUR 60.2 million in 2011, the prior-year figure having been impacted by restructuring costs of EUR 5.6 million. However, over the same period, the cost of materials increased in relation to revenue from EUR 62.8 million to EUR 72.7 million. This was mainly due to the strongly growing but low-margin consolidation business increasing the cost basis. Irrespective of this, the FP Group increased its EBITDA result to EUR 19.0 million in 2012 compared with EUR 13.1 million in the previous year. Consolidated net income improved to EUR 3.5 million compared with EUR -4.6 million in 2011.

FP Group anticipates profitable growth

The FP Group anticipates sustainable and profitable growth for the current financial year and beyond. In 2013, revenue is expected to rise to at least EUR 168 million and the EBITDA result to at least EUR 22 million. It should be noted that the FP Group announced in the summer of 2012 that it would successively compensate the losses made due to the temporary challenges faced in 2012. In the year 2015 the company targets to hit its goals. These middle-term goals will result in EUR 178 million, EUR 30 million EBITDA and Net Profit of EUR 8 million. Hans Szymanski, CEO of Francotyp-Postalia Holding AG, made the following comment: “After mastering all the challenges we faced in 2012, our company is now returning to success. We will work step by step to build on the foundation we established, increase our earnings and financial power and develop new growth opportunities.”