Francotyp-Postalia Holding AG. Financial Statements 2008 Analysts Conference 28 April 2009

Transcription

1 Francotyp-Postalia Holding AG Financial Statements 2008 Analysts Conference 28 April 2009

2 Francotyp-Postalia (FP) at a Glance Overview FP-Group covers the entire value chain in the outbound mail market One the world s leading manufacturers franking machine: Globally, 9.6% market share Worldwide base approx. 250,000 customers Strong aftermarket business leads to 67.9% recurring revenues and strong cash flow generation in Mailroom With approx. 160 million sorted letters and 9 sorting centres one the biggest companies in Germany for mail consolidation services Digital business with approx. 200 customers and approx. 19 million letters Worldwide >1,100 employees Key Figures million Revenues EBITDA before restructuring in % revenues EBITDA in % revenues Net loss Operating Cash Flow Installed Base 265, ,828 2/23

3 Mailstream with Strong Growth Mailroom Burdened with Currency Revenues % m illio n ,2% Mailstream iab (Outsourcing / Hybrid Mail) freesort (consolidation) 4.8 million Mailroom Mailstream Revenues 147.3m (+1.5%) at constant exchange Revenues 147.3m (+1.5%) at constant exchange rates rates Mailstream increases revenues by 6.9m Mailstream increases revenues by 6.9m Mailroom burdened with: Mailroom burdened with: currency effect ( -4.9m) currency effect ( -4.9m) NetSet NetSet TM TM effect in The Netherlands in 2007 effect in The Netherlands in 2007 ( -2.2m) and loss high volume inserter ( -2.2m) and loss high volume inserter business ( -1.5m) business ( -1.5m) U.S. rate change lower than expected ( -0.5m) U.S. rate change lower than expected ( -0.5m) Mailroom business in key markets stable in 2008 Mailroom business in key markets stable in /23

4 Diversified and Predictable Recurring Revenues in 2008 Revenue breakdown for 2008 (including Mailstream) By region By product Recurring / Non-recurring Europe excl. Germany 30.2% Others 0.8% Germany 43.6% Consumables 16.6% Product Sales 32.1% Non-Recurring 32.1% Service 29.1% North America 25.4% Teleporto 8.4% Rental 13.8% Recurring 67.9% Global business with strong potential to grow market share internationally Percentage service increasing due to growing Mailstream Large and continuous stream recurring revenues as a result extensive and stable installed base 4/23

5 Currency and One-f Effects strained EBITDA in * million EBITDA Margin 25, %* 17.4% 15.6% EBITDA EBITDA 24.9m 24.9m at at constant constant exchange exchange rate rate and and before before restructuring restructuring costs costs Currency Currency effect effect 2.7m 2.7m Restructuring Restructuring costs costs show show an an impact impact 4m: 4m: 1.4m 1.4m personnel personnel expenses expenses incl. incl. severance severance payments payments 1.9m 1.9m SCO SCO 0.7m 0.7m other other consultancy consultancy Mailstream: Mailstream: Positive Positive EBITDA EBITDA 1.2m 1.2m (2007: (2007: -0.9m) -0.9m) * Change at constant exchange rate and before restructuring costs 5/23

6 Net loss due to Restructuring Cost and Extraordinary Depreciations million Revenue Change in inventories Own work capitalised , Total output Material expenses in % revenue Gross prit Personnel expenses in % revenue Operating expenses./. income EBITDA before restructuring in % revenue EBITDA in % revenue Depreciation EBITA Amortisation EBIT Interest result Financial result Tax result Net prit/loss* EPS ( )** EPS ( ) adjusted by amortisation Own work capitalised down due to reduced Own work capitalised down due to reduced swap rate rental machines in 2008 compared to swap rate rental machines in 2008 compared to higher rate in 2007 in Canada (Decertification) higher rate in 2007 in Canada (Decertification) and The Netherlands (Net Set); lower capitalised and The Netherlands (Net Set); lower capitalised R&D cost. R&D cost. Material expenses mainly declines due to lower Material expenses mainly declines due to lower own work capitalised. own work capitalised. Personnel expenses Personnel expenses higher due to a net effect 0.7m for higher due to a net effect 0.7m for severance payments severance payments growing Mailstream business leads to growing Mailstream business leads to increased expenses 1.2m increased expenses 1.2m savings in Mailroom business -0.9m savings in Mailroom business -0.9m Operating Expenses increased by 4.1m mainly Operating Expenses increased by 4.1m mainly due to 2.6m restructuring costs and 1.3m due to 2.6m restructuring costs and 1.3m higher costs in expanding Mailstream business higher costs in expanding Mailstream business Extraordinary depreciation due to iab GmbH Extraordinary depreciation due to iab GmbH ( 2.5m), alignment SCO ( 1.4m) and R&D ( 2.5m), alignment SCO ( 1.4m) and R&D ( 1.2m) ( 1.2m) Negative financial result due to an exchange Negative financial result due to an exchange rate driven reassessment intercompany rate driven reassessment intercompany receivables for CAN, US, UK receivables for CAN, US, UK * before minorities ** after minorities 6/23

7 MOVE Restructuring Programme Research and Development: completed Definition new structure and processes Reduction expenses mainly external personnel expenses and consultancy services Administration: completed Reduction headcounts worldwide in administration, IT and sales Supply Chain Optimisation: in progress centralised stocking Synchronised production Headcount reduction Evalutation current SCO-project leads to realignment. Ongoing Restructuring programme is a requirement for mid-term gains 7/23

8 Consolidated Balance Sheet Abbreviate as Planned million Cash and cash equivalents Securities Trade receivables Inventories Deferred taxes Other assets Tangible assets Intangible assets Trade payables Other liabilities Financial liabilities Provisions Equity Inventories Inventories reduced reduced by by 3.6m 3.6m Networking Networking Capital Capital 27.3m 27.3m ( 33.4m ( 33.4m in in 2007) 2007) Intangible Intangible assets assets further further amortised amortised as as planned planned Negotiations Negotiations about about midmidterm term funding funding completed completed since since Dec Dec and and secured secured mid-term mid-term liquidity liquidity Loan Loan redemption redemption will will continue continue to to decrease decrease net net debt debt position position as as planned planned Net Net debt debt 53.2m 53.2m ( 51,7m ( 51,7m in in 2007) 2007) Equity Equity ratio ratio 20.4% 20.4% (29,8% (29,8% in in 2007) 2007) Assets Equity and Liabilities 8/23

9 Ongoing Strong Operating Cash Flow million Cash flow from operating activities Cash flow from investing activities there: R&D Tangible assets Intangible assets Leased inventories R&D: R&D: First First results results from from restructuring restructuring programme programme Intangible Intangible assets: assets: Mainly Mainly customer customer lists lists Direkt Direkt Express Express Brief Brief AG AG and and Stware Stware in in connection connection with with SCO SCO Leased Leased inventories: inventories: Absence Absence decertification decertification effect effect in in CAN CAN and and NL NL Free cash flow Cash flow from corporate acquisitions Cash flow from financing activities* Cash and cash equivalents ** Dividend Dividend payments payments -2.2m -2.2m Share Share buy-back buy-back -1.3m -1.3m Repay Repay bank bank loan loan -3.6m -3.6m Take-up Take-up a a bank bank loan loan 4.0m 4.0m * incl. currency effect -0.2m (prior year -1.6m) ** including 0.7m securities 9/23

10 Business Year 2008 at a Glance 2008 was a challenging year for the FP-Group Global recession affected operative business Strong Euro had a negative currency impact 4.9m on revenue and 2.7m on EBITDA One-f depreciations mainly iab and realignement SCO - burdened earnings Restructuring programme to lay the seeds for pritability FP-Group was still in line with expectations 64.0% predictable recurring revenues Stable development in key markets Germany and UK 81% growth rate in Mailstream business 10/23

11 Strategy and Outlook

12 Mailroom: FP Gained Market Share in US and UK Market GER Global Market Franking Machines Market USA 233k Installed Base 102k Installed Base Installed base: 2.8m 1,570k Installed Base 69k Installed Base #1 Market Position #3 Market Position 8.4% Global Market 43.8% Market Share FP Market Share Franking Machines 56.4% Global Market 4.4% Market Share UK 9.6% global market share 267k Installed base NL Market 251k Installed Base 9.0% Global Market 22k Installed Base #3 Market Position 8.7% Market Share Installed base > 80 countries worldwide Leading position in key markets FP is set to gain market shares in UK and US markets Market 53k Installed Base 1.9% Global Market 15k Installed Base #2 Market Position 27.7% Market Share 12/23

13 Mailroom: Strategic Thrust to Improve Core Business Growth Business Opportunities Decertifications Tenders Organic Growth Expansion Asia-Pacific and other emerging markets Growth in traditional markets with lower market shares Improve Pritability Restructuring programme will be continued Time 13/23

14 Mailstream: Still High Growth Potential Digital Market 2008 Market volume in million Current FP = 4 New Sales structure in Germany unifies Mailstream and Mailroom sales activities Digital business: approx. 200 customers and 19 million letters in Germany 0 US UK D Consolidation Market Germany International roll out digitalisation business will start in UK Market volume in million FP Market potential Consolidation business: Stronger competition Nationwide network sorting centres Consolidated letter volume 160 million letters in 2008 (2007: 80 million letters) 14/23

15 FP Your Mail Management Company Mailroom: Value 10-2,000 letters per day Printing Inserting Franking Consolidation Hybrid Mail / Outsourcing 1 >>10,000 letters per day Mailstream: Growth 15/23

16 Mail Management by FP - A Unique Competitive Advantage Franking/ Inserting 10-2,000 letters Aftersales Cost Savings Example Germany: costs/letter 1.38 Outsourcing costs/letter 0.25 savings/letter 1.13 Letter/day 7,000 Consolidation Outsourcing/ Hybrid-Mail > 250 letters 1->>10,000 letters Sorting Centres Broad Customer Base Offers Attractive Cross-selling Potentials Letter/year 1,76m Savings Outsourcing: 2,000,000 per year + 200,000 postage savings 16/23

17 Outlook for 2009 Deep global recession will continue to impact FP markets in 2009 Significant reluctancy to invest Uncertainty about length and depth the recession does not allow quantitative forecast High percentage recurring revenues Mail Management Solutions will help customers to fulfill cost-saving programs midterm opportunity Restructuring with positive effect on earnings 17/23

18 Thank you for your attention! We will now answer your questions. 18/23

19 Appendix

20 Shareholder Quadriga Capital Private Fund II L.P., 22.4% Freefloat Amiral Gestion 11.30% Baillie Gifford & Co 5.39% Quadriga Ltd, 3.9% Financiére de l'echiquier 5.11% Richelieu Finance Gestion Privée 4.85% freefloat*, 73.7% Eric Spoerndli 3.28% *Treasury Stock 2.52% 20/23

21 Financial Calendar Results 2008 April 2009 Results Q May 2009 Annual General Meeting 23 June 2009 Halfyear Results August 2009 Results Q November 2009 Results 2009 April /23

22 Investor Relations Contact Sabina Prüser Vice President Investor Relations/Media Relations Francotyp-Postalia Holding AG Telephone +49 (0) Fax +49 (0) Address Triftweg Birkenwerder 22/23

23 Disclaimer This report contains forward-looking statements on the business development the Francotyp-Postalia Group. These statements are based on assumptions relating to the development the economic and legal environment in individual countries and economic regions, which we have made on the basis the information available to us and which we consider to be realistic at the time going to press. The estimates given entail a degree 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 our business. The same applies in the event 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 value-enhancing factors and risks presented in the 2007 Annual Report develop in a way other than we are currently expecting. 23/23