FP-GROUP Unaudited Results Half-Year Report 2012

Transcription

1 FP-GROUP Unaudited Results Half-Year Report 2012 Management Board of Francotyp-Postalia Holding AG

2 DISCLAIMER This report contains forward-looking statements on the business development of the Francotyp- Postalia Group. These statements are based on assumptions relating to the development of the economic and legal environment in individual countries and economic regions, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given entail a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as Western Europe (and especially Germany) or in the USA, UK, or Canada, and Singapore will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, Canadian dollars, Singapore dollars. In addition, expected business development may vary if the assessments of value-enhancing factors and risks presented in the 2011 Annual Report develop in a way other than we are currently expecting. 2 Unaudited Results HY 2012

3 POSITIVE DEVELOPMENT IN HY 2012 But below expectations million HY 2012 HY 2011 % Q Q % Revenue EBITDA before restructuring as % of revenue EBITDA n/a as % of revenue EBIT n/a n/a Net profit/loss n/a n/a EPS ( ) n/a n/a Revenue growth of 2.2% due to increase in Mail Service and Software Business EBITDA increases from 3.9m to 8.6m EBIT achieves 4.0m (previous year -3.6m) Net profit of 1.7m against net loss of -4.2m in HY Unaudited Results HY 2012

4 TEMPORARY CHANGE IN REVENUE STRUCTURE million Mail Service revenue increases by 2.6m (plus 15%) Franking Machine revenue suffers from challenges in supply chain and sales organisation - decrease of 1.6m mainly due to Germany HY 2009 HY 2010* HY 2011 HY 2012 Franking/Inserting Mail Service Software *Change in reporting system due to VAT act 4 Unaudited Results HY 2012

5 STRONG RECURRING REVENUE STILL CHARACTERISES FP million Non-Recurring Revenue Recurring Revenue HY 2009 HY 2010 HY 2011 HY 2012 Increase of recurring revenue mainly due to Mail Service and Software Sales of franking machines suffers mainly in Germany, but since July and August order entry improves 5 Unaudited Results HY 2012

6 SIGNIFICANT AND SUSTAINABLE DECREASE IN PERSONNEL COSTS million HY 2009 HY 2010 HY 2011 HY m less personnel costs (-17.4%) Prior year burdened by restructuring costs ( 6.1m) while facing positive effect out of site protection agreement ( -1.0m) Increase of personnel costs due to tariff increase Production site in Birkenwerder closed end of March 2012 New production site now in steady-state: 50 employees; during ramp-up phase temporarily more then 70 employees (incl. part time workers) 6 Unaudited Results HY 2012

7 MATERIAL EXPENSES AFFECTED BY CONSOLIDATION BUSINESS million Slight increase in cost of raw materials, consumables and supplies of 0.8m Increase in cost of services purchased of 2.7m mainly due to consolidation business ( 2.3m) HY 2009 HY 2010 HY 2011 HY Unaudited Results HY 2012

8 TWO DEVELOPMENTS HAVE CAUSED NEGATIVE IMPACT ON EBITDA 1. Longer than expected challenges in supply and process chain 2. Temporary challenges in the German sales organisation Weaker franking machine business Strong consolidation business with lower margins 8 Unaudited Results HY 2012

9 MOVING PRODUCTION FROM BIRKENWERDER TO WITTENBERGE Causes delay in delivery Setting up production Wittenberge End of Oct.`11 Feb `12 March `12 July `12 Start Wittenberge (Prototypes) PostBase mymail ultimail Pilot run PostBase centormail Ramp-up phase Wittenberge End of March `12 Phase out Birkenwerder Closing of Production Birkenwerder 9 Unaudited Results HY 2012

10 TEMPORARY CHALLENGES DURING MOVE OF THE PRODUCTION Productivity in Birkenwerder decreased rapidly in winter 2011/2012 Establishing and ramp-up of ultimail and centormail line in Wittenberge took longer than expected New staff in Wittenberge has to be trained more intensively than planned These temporary challenges caused further delivery backlogs In summer 2012, FP has mastered all challenges Production site in Wittenberge reached steady-state now 10 Unaudited Results HY 2012

11 NEW PRODUCTION SITE HAS REACHED STEADY STATE Backlog caught up Steady state level Ramp-up delay in HY due to change in production facility and production process Since July 2012, Wittenberge has reached steady state Output now sufficient to catch up with backlog FP will further optimize the production 11 Unaudited Results HY 2012

12 BACKLOG HITS MAINLY GERMAN SALES ORGANISATION Backlog due to challenges in process and supply chain Backlog caught up Dealer Channel Challenged to reach targets Telesales - acquistion of new customers Direct Sales - again stronger emphasis on franking machines Dealer Channel suffered from backlogs and did not reach its targets in HY Telesales focused on sale of franking machines, but German market did not react as expected Direct Sales worked well - increase in consolidation business of 15% Order entry for franking machines (equipment sales) improved in July and August 12 Unaudited Results HY 2012

13 DEVELOPMENTS HAVE BURDENED MARGIN UNEXPECTEDLY EBITDA before restructuring [TEUR] HY 2011 Margin Site protection agreement Subsidies Restructuring Savings in Q2 Ramp-up costs new production Others HY 2012 Lower margin and ramp-up costs of new production End of site protection agreement and discontinued subsidies burdened EBITDA as expected First profits from restructuring in Q2 as expected 13 Unaudited Results HY 2012

14 FP HAS REACTED FAST TO UNEXPECTED CHALLENGES 1. Longer than expected challenges in supply and process chain Production site reached steady-state in summer Temporary challenges in the German sales organisation Weaker franking machine business Direct Sales with higher incoming orders since June 2012 Strong consolidation business with lower margins Consolidation business expected to stay strong 14 Unaudited Results HY 2012

15 FURTHER IMPROVEMENT OF EQUITY RATIO IN HY 2012 Increase of non-current assets mainly due to intangible assets ( 1.8m), property, plant and equipment ( 0.9m) Current assets increases by 6m due to inventories ( 3.5m) and cash ( 1.7m) Decrease of provisions by 4.4m Further increase of equity as a result of capital increase and consolidated net profit Equity ratio of 15.2% (11.9 % end of 2011) million Non-current Assets Current Assets Non-current HY HY 2012 Assets Equity Liabilities Current Liabilities Equity and Liabilities 15 Unaudited Results HY 2012

16 UTILISATION OF PROVISIONS million 8.7 Utilisation of 3.9m HY 2012 Vacation production hall Legal&Consulting Severance payments Provisions due to restructuring decrease in total from 8.7m end of 2011 by 3.9m to 4.7 end of HY 2012 Cash out of severance payments of 3.7m Cash out regarding legal and consulting fees of 0.3m 16 Unaudited Results HY 2012

17 CASH POSITION IMPACTED BY LOAN AND EQUITY INCREASE million HY 2012 Restricted Cash Cash/Cash equivalents Cash out due to severance payments of 3.7m Slight increase of restricted cash ( 1.0m) 17 Unaudited Results HY 2012

18 NET DEBT STAYS ON LOW LEVEL million Net Debt HY 2012 in million Financial Liabilitities 41.3 Cash and Cash equivalents 8.9 (= 27.6 cash and cash equivalents restricted cash securities own shares) Total HY 2012 Financial liabilities includes borrowing of 40.0m (previous year: 44.0m) and liabilites from finance lease at 1.2m (previous year: 2.5m) 18 Unaudited Results HY 2012

19 CASH FLOW SHOWS FIRST IMPACT OF SEVERANCE PAYMENTS Cash flow development for the half-year 2011 and 2012 HY 2011 HY 2012 Cash flow from operating activities burdened mainly by: million Free Cashflow m due to cash out regarding the utilisation of provisions for restructuring 3.7m due to weaker EBITDA (before restructuring costs) Free Cashflow Cash and cash equivalents at the beginning of period Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities *) Cash and cash equivalents at the end of period Cash and cash equivalents at the beginning of period Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities *) Cash and cash equivalents at the end of period *) plus change in cash and cash equivalents due to currency translation 2011: -0.1m, 2012: 0.1m 19 Unaudited Results HY 2012

20 FP GROUP IS INVESTING IN FUTURE GROWTH million Less investments in tools for PostBase and production site Wittenberge Higher investments for US rental market Investments in PostBase and D HY 2009 HY 2010 HY 2011 HY 2012 R&D Leased Inventories Tangible assets Corporate acquisitions Intangible assets 20 Unaudited Results HY 2012

21 TEMPORARY CHALLENGES HAS REQUIRED REVISION OF GUIDANCE Temporary challenges led to lower than expected earnings in HY FP will not manage to catch up completely in H and therefore revises its guidance: Revenue will increase to 161m at least FP expects to reach an EBITDA of 19m to 21m instead 25m FP expects to reach an EBIT of 8m to 10m instead 12m 21 Unaudited Results HY 2012

22 TEMPORARY CHALLENGES DO NOT IMPACT BUSINESS MODEL FP will benefit from good acceptance of innovative PostBase system in second half of 2012 high interest in D in the coming years restructuring efforts: Savings of 3 million per year leaner organization and efficient production 22 Unaudited Results HY 2012

23 We will now answer your questions. 23 Unaudited Results HY 2012

24 APPENDIX F Rev. 3.0

25 CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSES million HY 2012 HY 2011 Change % Q Q Change % Revenue Change in Inventories n/a Own work capitalised Total output Material expenses as % of revenues Gross profit Personnel expenses as % of revenues Operating expenses./. Income EBITDA before restructuring as % of revenues EBITDA n/a as % of revenues Amortisation/Depreciation EBIT n/a n/a Interest result n/a n/a Financial result n/a n/a Tax result n/a n/a Net profit/loss* n/a n/a EPS ( )** n/a n/a * before minorities ** after minorities 25 Unaudited Results HY 2012

26 FP STOCK INFORMATION Shareholder Structure: LRI Invest S.A. 9.52%* 3R Investments 9.03% Amiral Gestion 9.00% Alceda Fund Management SA 3.07%* Eric Spoerndli 5.02%* ISIN: DE000FHP9000 Segment: Prime Standard/ All Industrial IPO: 30 November 2006 Reuters: FPHG.DE Shares: million Freefloat: 83.4% (German Stock exchange Frankfurt) Treasury Stock 2.29% *These are data based on share capital of 14.7 million shares 26 Unaudited Results HY 2012

27 Andreas Drechsler (left) CSO Member of the Board since March Born in 1968, banking and business graduate, responsible for Sales Germany and International, Business Development and Product Management, Internal Audit, Marketing and Corporate Communications. Hans Szymanski (right) CEO and CFO Member of the Board since Dec Born in 1963, economics graduate, responsible for Finance, Accounting, Controlling, Human Resources, Legal and Compliance, IT, Research and Development, Quality Management, Production, Purchasing, Logistics, and Strategic Business Development. 27 Unaudited Results HY 2012

28 FINANCIAL CALENDAR Interim Report 6M/Q August 2012 Interim Report 9M/Q German Equity Capital Forum (Frankfurt/Main) 4.30pm (CET) Room Milan 13 November 2012 Preliminary Results 2012 February/March 2013 Presentation Financial Report 2012 End of April Unaudited Results HY 2012

29 CONTACT Sabina Prüser Corporate Communication Vice President Investor Relations/ Public Relations Francotyp-Postalia Holding AG Telephone Fax Address Triftweg Birkenwerder FP-Weblog: FP auf facebook: FP Francotyp-Postalia Deutschland Twitter: FP Francotyp 29 Unaudited Results HY 2012