FRANCOTYP-POSTALIA EXCEEDS REVENUE AND EBITDA GUIDANCE IN 2015

Based on preliminary calculations, Francotyp-Postalia Holding AG, the Digital Mailroom provider, was able to considerably improve its revenue and EBITDA in the 2015 financial year and thus exceed the guidance that was increased in autumn 2015. Revenues rose to EUR 190.8 million from EUR 170.3 million the previous year. The double-digit growth is primarily the result of growth in mail services (consolidation of business mail), successful leasing of the PostBase franking system, and significantly positive exchange rate effects, which amounted to EUR 9.1 million in the whole of 2015.

The proportion of recurring revenue was at 81% in 2015; compared to the previous year, this revenue increased from EUR 139.4 million to EUR 154.0 million. Over and above the mail services and leasing business, the figure also includes revenue from software, service, teleporto and consumables for the around 230,000 franking machines worldwide. At EUR 36.8 million, revenue from product sales was also considerably above last year’s level of EUR 30.9 million.

Preliminary calculations suggest that EBITDA, including a positive currency effect of EUR 3.9 million, improved to EUR 27.5 million compared to EUR 23.1 million the previous year, pushing the EBITDA margin up from 13.6% the previous year to 14.4%. FP Group ended in the year 2015 very successful the replacement of franking machines necessitated by the discontinuation by the United States Postal Service of older franking machines (decertification) in the US lease market. This resulted above all in higher amortisations and depreciations of EUR 17.6 million after a figure of EUR 13.3 million in 2014. Despite considerably higher amortisations and depreciations EBIT remains unchanged from the previous year's level at EUR 9.8 million. Based on the preliminary calculations, group profit reached EUR 4.4 million because of the likelihood of increased tax liabilities, compared to EUR 5.2 million the previous year.

As announced, the FP Group invested primarily in the course of 2015 in exchanging franking systems in the US American market and in developing new franking systems. In total, investments ran to EUR 20.2 million, compared to EUR 23.1 million the previous year. Based on the preliminary calculations, free cash flow improved by around EUR 4 million to EUR -1.3 million in 2015 from EUR -5.6 million the previous year; by the end of the year, it was nonetheless weaker than expected due to sustained high levels of investment.

The FP Group will present its final figures for the 2015 financial year on 13 April 2016. On the same day, Rüdiger Andreas Günther, CEO of Francotyp-Postalia Holding AG, will also present an outlook for the current year, 2016, some 100 days after he has taken up office. Together with his colleagues from the Management Board, Thomas Grethe and Sven Meise, Rüdiger Andreas Günther will also present an update of the current strategic focus of the FP Group, in particular with regard to the potential for an accelerated expansion of promising areas of business.