Unlocking Value Through Focus on Core Digital Services

La Hulpe, Belgium —30 April 2024, 7:30 a.m. CET— Unifiedpost Group SA (Euronext: UPG) (“Unifiedpost”), a leader in cloud-based business process solutions for administrative and financial services, is holding a Strategic Update event today, in which we outline our refined strategic priorities and midterm objectives.

• Core digital focus: Emphasis on core digital services to accelerate growth while executing on a clear portfolio rationalisation strategy.
• Modular approach: The business model offers flexibility to meet specific customer requirements, broaden market reach and increase ARPU across our value chain.
• Strategic partnerships: Effective partnership approach is a key driver for network expansion, maximising reach and impact.
• Regulatory preparedness: A robust technological platform provides a strong platform to capture regulatory upside opportunities.
• Clear financial framework: Revised medium-term objectives with new revenue classification aligned to strategic focus, while adopting a disciplined approach to capital management.

Hans Leybaert, Chief Executive Officer and founder, commented:

"Following a detailed review of our business model, we are pleased to outline our refined strategic priorities with a clear focus on driving our core digital services. As digital transformation accelerates across our industry, we are streamlining our portfolio by divesting traditional services that are less relevant to our future. Our platform, allied to the flexibility offered by our modular approach to meet client demands, positions us strongly to capture opportunities in the short term and the benefits of incoming regulatory reforms. We have set ambitious yet realistic short and mid-term goals in line with our strategic objectives.”

Strategic update

In 2023, we conducted a strategic review of the business model and assessed our core digital services i.e. e-identity, e-invoicing, e-payments and e-reporting, and our traditional communication service, i.e. our document data extraction, print and mail and paper-based services.

As digital transformation accelerates, the need for traditional communication services is decreasing. We are streamlining our portfolio to focus on the core digital services given the increased demand for complete digital solutions. As a result, our portfolio rationalisation is underway and several of our traditional communication services will potentially be divested in case opportunities arise. In this respect, we are in the process of divesting FitekIN and ONEA, i.e. two stand-alone products. This transaction is expected to be finalised in Q2 2024. In addition we have entered into exclusive negotiations in the Nordics. More information can be found on our press release which we issued at 7:00 this morning. Finally, we are currently making progress on other smaller divestment projects and signed several non-disclosure agreements in this respect. Potential proceeds from these divestment initiatives will be used to reduce net debt and strengthen our cash position.