DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Quarter Results/Quarter Results Francotyp-Postalia Holding AG: FP Group off to good start in 2014 as expected 28.05.2014 / 07:00 --------------------------------------------------------------------- Corporate News FP Group off to good start in 2014 as expected - Revenue increased by 2.1% to EUR 44.4 million in the first quarter of 2014 - EBITDA increases by 8.1% to EUR 6.7 million - EBIT increases by 8.8% to EUR 3.7 million - FP Group confirms its forecast for 2014 Birkenwerder, 28 May 2014. Francotyp-Postalia Holding AG, a multi-channel provider for mail communication, succeeded once again in increasing its revenue and earnings in the first quarter - traditionally a strong quarter for the Group - despite the strong Euro. In the first quarter of 2014, revenue increased by 2.1% to EUR 44.4 million. This growth was primarily attributed to significantly higher recurring revenue, particularly in the Mail Services and Software segments. The higher total revenue and stable personnel costs decisively contributed to increasing earnings power in the first quarter of 2014. The FP Group generated EBITDA, operating earnings before interest, taxes and depreciation, of EUR 6.7 million compared with EUR 6.2 million in the first quarter of 2013. The EBITDA margin rose to 15%. As a result, EBIT rose, despite higher amortisations, to EUR 3.7 million versus EUR 3.4 million in the previous-year period. By contrast, the consolidated profit was down from the previous year (EUR 2.2 million) to EUR 1.9 million due to a higher tax result and negative financial result. However, free cash flow - the balance of cash inflows from operating activities and cash outflows from investing activities - improved significantly in the first three months of 2014 reaching a total of EUR 2.3 million compared with EUR 1.2 million in the first quarter of 2013. Outlook for 2014: FP Group anticipates profitable growth In view of the anticipated strong start to the financial year, the FP Group confirms its forecast for 2014 as a whole. The company expects revenue to grow to at least EUR 173 million, EBITDA to increase to at least EUR 25 million and an improvement in EBIT to at least EUR 12 million. With regard to free cash flow, the FP Group is anticipating a one-off negative value of EUR -2 million. The reason for this is the high level of capital expenditure expected in 2014. Capital expenditure in 2014 primarily concerns investments in the rental markets of the USA and France. As a result of ongoing decertification, many companies in the USA are replacing their older franking machines with the new PostBase. At the same time, the FP Group is expanding its business in Europe's largest market for franking machines, namely France. With the company also continuing to invest in the development of a new franking system and machines for production, total investments in the current year are expected to increase by approximately EUR 5 million to total EUR 19 million. FP CEO Hans Szymanski explains: "In the current year, we will continue to lay the foundation for long-term success. In Germany, we are optimising sales activities with the Aufbruch 2015 initiative. At the same time, we are firmly establishing our franking machine business in two large markets: the USA and France. As a result, we are investing to a considerable extent in future growth and, at the same time, plan to increase revenue and our operating earnings. This demonstrates that the FP Group is well positioned and still has potential." Key figures at a glance:

in EUR million                  Q1 2014         Q1 2013            Change
Revenue                            44.4               43.5           2.1%
EBITDA                              6.7                6.2           8.1%
EBIT                                3.7                3.4           8.8%
Consolidated net income             1.9                2.2         -13.6%
Free cash flow                      2.3                1.2          91.7%
                                Q1 2014         31.12.2013
Net debt                           27.8               30.1          -7.6%

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. End of Corporate News --------------------------------------------------------------------- 28.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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 --------------------------------------------------------------------- 270813 28.05.2014