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 --------------------------------------------------------------------- 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:

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

Half-yearly figures at a glance:

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

Contact Francotyp-Postalia Holding AG Corporate Communications Sabina Prüser Tel: +49 (0)3303 525 410 Fax: +49 (0)3303 53707 410 E-Mail: [email protected] 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. --------------------------------------------------------------------- 28.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: [email protected] Internet: www.fp-francotyp.com ISIN: DE000FPH9000 WKN: FPH900 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 284272 28.08.2014