DGAP-News

Francotyp-Postalia Holding AG: Francotyp-Postalia demonstrates strength in first six months of 2016 with further revenue and EBITDA growth - Seite 2

rate. As a result, it expects the tax rate for 2016 as a whole to be
considerably lower than in the previous year. The main operational
excellence measures also include the improved and significantly expanded
Group funding. In June 2016, the company concluded a new, extended loan
agreement with a volume of EUR 120 million at improved terms and
conditions. This gives the FP Group the necessary scope to finance the
planned growth over the coming years, including the possibility of
acquisitions.

Free cash flow improves to EUR 6.3 million
In addition to its earnings power, the FP Group considerably improved its
financial strength in the first half of 2016. Free cash flow improved
significantly to EUR 6.3 million after EUR -0.6 million in the previous
year thanks to the planned reduction in investments in leased products as
well as an improvement in working capital. There was also a positive effect
due to non-recurring cash inflows not recognised in earnings in the amount
of EUR 1.7 million from the successful conclusion of mutual tax agreement
procedures.

In light of the positive development in the first half of 2016, the
Management Board is confirming its forecast for 2016 as a whole: Assuming
that exchange rates remain unchanged, the company expects to see a slight
year-on-year increase in revenue and EBITDA as well as a positive free cash
flow.

Increased growth potential in the medium term
Rüdiger Andreas Günther, CEO of the FP Group, commented: "As a start, I am
satisfied with our performance in the first six months of 2016. We recorded
growth and demonstrated our strength in all business areas as expected. In
the medium term, however, our company has a great deal more profitable
growth potential to offer. To achieve this, we are currently enhancing our
strategy and initiating operational excellence measures." The FP Group will
present its enhanced growth strategy and information about the next steps
in the autumn. Günther: "I am confident that we will leverage our company's
potential."

Key figures at a glance:

in EUR million                               H1/2016     H1/2015     Change
Revenue                                           100.3        95.2    5.4%
- of which franking machines                       63.1        62.2    1.5%
- of which Mail Services                           30.1        26.1   15.3%
- of which Software                                 7.1         6.9    2.7%
EBITDA                                             14.6        14.3    2.5%
EBIT                                                6.3         6.1    3.5%