COMPANY PRESENTATION FUTURE@FP - Carsten Lind (CEO) Martin Geisel (CFO)
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COMPANY
PRESENTATION Carsten Lind (CEO)
Martin Geisel (CFO)
FUTURE@FP May/June 2021
FOCUS
FUTURE@FP ▪ Focus on execution
▪ Clear-cut Business Units
▪ Increase profitability by adapting
structure, processes and staffing
to future business expectations
BUILD
▪ New customer centric target
operating model
▪ Expansion of SaaS offering:
▪ IoT
▪ BPA
▪ FP Digital Office FUTURE@FP
(SMB) CREATING VALUE
CREATE VALUE
▪ Expansion of SaaS offering
▪ New Verticals
▪ International
▪ Acceleration possible by targeted bolt -
on M&A activities
FP | 1
FUTURE@FP
Key programs and steps to execute for bringing FP forward
1. 2. 3. 4. 5.
Right Sizing – New Operating Digital Business Increase Value for
ERP/CRM
Right Shoring Model Foundation “wave 1” Customers
Restructuring – reduce Clear responsibilities in Foundation for Scale digital offerings Customer Solutions:
excess capacity Business Units: operating model (inter) nationally with FM – stay relevant with
FP Digital Office
Use highly efficient Customer & Market Automate and - Low touch sales for
service partners in centric approach Digitalize Back-Office SMB customers on IoT – from Hardware to
nearshore locations and Front-Office SaaS business PaaS and SaaS
- Finance Operations From product
- Customer Service manufacturer to Run FP by KPIs - Increase FPsign - Internationalize
- Telesales Solution Provider responsiveness
- IT and R&D Effective retention sales through Cloud IAB – from print to
based eco-system document processes
Lean HQ OneFP
SOFTWARE & Tailored verticals &
BPA Focused niches
➔ started ➔ Q2/Q3 2021 ➔ Q2 + 12 Months ➔ Q4 2021 ➔ Continuous process
FP | 2 FP | 2
FP Business Units
To create value for customers
SOFTWARE & FRANKING & MAIL IOT
BPA OFFICE SOLUTIONS SERVICES
Enabling efficient Mailing and shipping Efficient outsourcing Efficient system
communication and made easy for of mail service monitoring and
workflow processes businesses processes service management
for businesses from the cloud
FP | 3
FP BU Software & BPA
We enable effective communication and workflows for businesses
▪ Optimize operational efficiency in customers
front-office and back-office processes, e.g.
▪ Higher customer experience by faster
onboarding processes
▪ Increased win rate and less termination through
faster closing (digital signature)
▪ Faster incoming payments by automated
invoicing
▪ Ensure compliance and reliability by
SOFTWARE &
BPA automated end-to-end processes
SOFTWARE &
Enabling efficient
▪ Higher productivity reduces costs
BPA
communication and
workflow processes
Enabling efficient
for businesses
communication and
workflow processes
for businesses
FP | 4
FP BU Software & BPA
One solution portfolio for different customer segments
▪ Develop from input/output to data-driven
Software & BPA
BPA provider (less dependency on
lower margin print business)
FP Digital Office Software BPA - Enterprise Solutions ▪ FP Sign as integral part of BPA portfolio
▪ Leverage combined core technology stack
▪ FP Parcel ▪ FP Sign ▪ Business Process ▪ Niche player in DACH, expanding to EU and
Shipping ▪ De-Mail Outsourcing vertical solutions
▪ Vision 360 ▪ TransActMail / Hybrid Mail ▪ Business ▪ Optimize go-to market approach
▪ In-/Output Management Communication
▪ Enterprise direct sales & consulting approach
(physical/digital) Automation
▪ FP Digital Office – standardized SMB
solutions – BU Franking & Office Solutions
as one key channel
SMB Large Enterprise
Partner
Outlook: clear growth perspective
FP | 5
FP Software & BPA
FP Sign – example for tailored vertical/niche approach: tax consultants
Tax consultant – digitally signed annual statements and tax returns
▪ Increase speed and efficiency in client communication by substituting paper-
based processes
▪ Sign and send from existing programs – with a few clicks – any time –
anywhere
▪ Legally compliant solution for all kinds of documents
▪ German Cloud, certified by German Federal Office for Information Security
~ 55k
Total Adressable Market
~ 50k Tax Consultants in Germany Optimized go-to-market approach
Servicable Market ▪ Definition of clear value proposition
Total excl. top 10% Customers ▪ Evaluation of obtainable market
FP ▪ Focused lead generation
FP Obtainable Market
OBTAINABLE ▪ Identification of potential partners
MARKET With focused optimized
Go-to-market-approach
FP | 6
FP | 6
FP BU Franking & Office Solutions
We help businesses by making their office life easier
▪ Simplify mailing and shipping processes
▪ Higher efficiency and more time for core
processes
▪ Save costs by choosing the right mailing
and shipping options
▪ Increase impact of customer communication
▪ Easy-to use solutions for managing physical,
information and financial flows
FRANKING & (FP Digital Office)
OFFICE SOLUTIONS
Mailing and shipping
made easy for
businesses
FP | 7
FP BU Franking & Office Solutions
Market Dynamics & Opportunities
DIGITALISATION
▪ Increasing demand for digital mailing, office
FRANKING MACHINE solutions and work from home (WFH) capabilities
MARKET ▪ COVID-19 has accelerated digital adoption
▪ YoY decline worldwide ▪ Increasing demand especially from mid-size
▪ 4 major players; high entry barriers businesses
▪ Shift to low-end franking solutions
▪ High recurring revenues
DIGITAL OFFICE SOLUTIONS
▪ Customers are looking for one-stop
FRANKING & OFFICE shopping for their office solutions
SOLUTIONS ▪ Adjacent products and solutions for all
office related processes
FP MARKET POSITION
▪ #1 in Germany & Austria,
#3 worldwide
▪ Installed base growth potential in PARCEL SHIPPING MARKET
some countries ▪ Increasing demand for shipping solutions in
▪ Key focus on low-mid end franking line with e-commerce growth
solutions ▪ YoY parcel volume increase of 10-15%
FP | 8
FP BU Franking & Office Solutions
We help businesses by making their office life easier
Franking &
Office FP Parcel Shipping
▪ Focus on SMB/mid size businesses
Solutions ▪ Growth potential in installed base in
selected countries, but likely net decline
Franking in FP Group installed base
▪ Monetize installed base by enhancing
Vision 360
value proposition for digital office
solutions
Folding & ▪ Optimize go-to market approach
Inserting
FP Sign ▪ Focus on two regions – NAM / Europe
▪ FP Digital Office solutions developed in
BU Software & BPA
Hybrid Mail ▪ BU Franking & Office solutions as key
channel for FP Digital Office
Office
supplies
Inbound Outlook: increasing profitability
Solutions FP Digital in a shrinking market
Office
Solutions
FP | 9FP BU Mail Services
We enable efficient outsourcing of mail service processes
▪ Comprehensive solutions for mail
communication including mail-pickup,
franking, sorting, consolidation
▪ Save on mailing costs
▪ Improve communication with end customers
and business partners
▪ IT-enabled service for high transparency
over costs and processes
MAIL
SERVICES ▪ Further streamline and optimize processes
Efficient outsourcing
of mail service ▪ Create additional value for customers by
processes
processing data and enriching physical mail
streams with digital added value
FP | 10
FP | 10FUTURE@FP
Guidance
2021FY 2021 Guidance
Paving the way for higher margins
2020 2021
REVENUE € m 195.9 € m 185 – € m 196
Addressable
market
EBITDA-MARGIN 4.1 % 3–6%
EBITDA € m 8.0 € m 6 – 12
▪ 2021 will be influenced by pandemic
situation and by FUTURE@FP
▪ Uncertainties remain – we are
optimistic based on the progress
made in Q1 2021 both on revenue,
cost base and EBITDA
FP | 12Financial Results First Quarter 2021
Impact from pandemic situation mitigated due to
recurring revenue and FUTURE@FP measures
Revenue declining (€ m 5.5 or 9.5 %)
€m Q1 2020 Q1 2021 • Negative impact on revenue from pandemic situation
• Decline in accordance with expectations
Revenue 57.0 51.5 • Increase in Software & BPA / IoT (€ m 0.3)
• Benefit from recurring revenues also in Q1 2021
EBITDA 8.0 4.9 • Q1 2020 “pre-pandemic situation”
EBITDA Margin 14.0 % 9.6 % EBITDA comparatively strong and in line with expectations
• Negative impact on EBITDA from reduced gross margin (€ m 3.0)
Depreciation/ mainly due to revenue decline (€ m 5.5), lower own work capitalized
5.4 4.5
Amortization (€ m 1.6) and non-recurring expenses for next wave of restructuring
measures (€ m 0.5)
Consolidated Profit 1.9 0.9 • Positive impact from first wave of started restructuring measures
(€ m 2.3)
EPS (basic, Euro) 0.12 0.05
Depreciation/Amortization
▪ Decrease by 17% mainly due to reduced investment level and clean-
up actions in Q4 2020
Consolidated Profit/EPS
▪ Due to the above, Consolidated Profit/EPS for Q1 2021 is positive –
but behind Q1 2020
FP | 14Free Cash flow
Strongly improved free cash flow generated in pandemic situation
• Continuous positive effects from Franking & Office Solutions and
€m Q1 2020 Q1 2021 strict cost/working capital management
Cash flow from • Reduced investments in ERP/CRM and rental equipment - back to
4.7 6.3 normal level
operating activities
Cash flow from • Improved liquidity level: cash and cash equivalents of
-4.8 -1.8
investing activities € m 33.6 (vs € m 36.1) and long-term bank borrowings of
€ m 29.5 (vs € m 36.4) due to installments made on banking
facilities (€ m 6.9)
Free cash flow 0.0 4.5
• Active lender dialogue continued, financial covenants are met in
Cash flow from
3.9 -7.7 Q1 2021, too
financing activities
Cash 22.3 20.5
FP | 15FP Software & BPA / IoT
Important progress made in pandemic situation
Input- & Outputmanagement
6.3% • Lower/postponed customer activity in output management
projects due to the pandemic situation
• Strengthening of sales activities ongoing
FP Sign
• Sales & marketing activities strengthened
• Opportunities from pandemic situation have now started
4.5 4.8 being converted into revenues – and order back-log has
improved
IoT
• Further delay in customer order placing due to pandemic
XX.X
situation
• Comprehensive and redesigned IoT product portfolio
required to address focused verticals making progress –
still to impact revenue
Revenue
Software & BPA /
IoT in € m
Q1 2020 Q1 2021
FP | 16FP Franking & Office Solutions
Decline in Franking & Office Solutions related to pandemic situation
Revenues down by 14.5 %
-14.5%
• Negative global impact from pandemic situation,
with different levels across regions
• Decline in accordance with expectations
• Prior year period was a “pre-pandemic situation”
• Benefit from recurring revenues also in Q1 2021
35.3 • Overall market trend after pandemic situation still
30.2 unclear
Revenue Franking
& Office Solutions
in € m
Q1 2020 Q1 2021
FP | 17FP Mail Services 57.4 XX.X
Reduction from pandemic situation in challenging market environment
-3.4% Main impact:
• Negative impact from pandemic situation
Hamburg
• Decline in accordance with expectations
Berlin • Continuous focus on profitable revenue
Hanover
Langenfeld Leipzig 17.2 16.6
Remaining Factors:
• Overall market decline in mail volume prevails
Frankfurt
Stuttgart
Munich
Revenue
Mail Services
in € m
Q1 2020 Q1 2021
FP | 18Appendix
Revenue by Product and Service
Continuously strong recurring revenue base
€m Q1 2020 Q1 2021 Major items in Q1 2021
Equipment sales & others 6.8 ▪ Negative impact on revenue from pandemic
8.9
situation on Franking & Office Solutions as well
Service 6.5 5.6 as Mail Services
Consumables 7.1 6.1 ▪ Positive development in Software & BPA / IoT
Teleporto 2.1 1.9 mainly driven by growth within FP Sign and
DE-Mail
Mail Services 17.2 16.6
Software & BPA / IoT 4.8 ▪ Approximately 66 % (64 % in prior year period)
4.5 of recurring revenues, underlining FP’s resilient
Revenue acc. to IFRS 15 46.2 41.7 business model
Finance Lease 4.0 2.0
Operate Lease 6.9 7.8
Revenue acc. to IFRS 16 10.9 9.8
Revenue total 57.0 51.5
FP | 20Consolidated Statement
of profit and loss Q1/2021
€m Q1 2020 Q1 2021
Revenue 57.0 51.5
Change in inventories 0.6 0.7
Other own work capitalised 3.1 1.5
Total output 60.7 53.7
Cost of materials -28.0 -25.8
Employee benefit expenses -16.0 -15.4
Impairment losses and gains on trade receivables -0.4 -0.3
Other income/expenses -8.3 -7.3
EBITDA 8.0 4.9
as % of revenue 14.0 9.6
Depreciation/Amortisation -5.4 -4.5
Interest result 0.3 0.3
Other financial result -0.2 0.6
Income taxes -0.9 -0.5
Consolidated net income 1.9 0.9
EPS (€ basic) 0.12 0.05
EPS (€ diluted) 0.12 0.05
FP | 21Financial Situation
Balance Sheet Assets (31.03.2021)
ASSETS 174.0 171.0
in € m
Non-Current Assets
▪ Decrease in intangible assets mainly due to
amortization
Current Assets
NON-CURRENT
ASSETS 82.2 80.3 ▪ Decrease in cash and cash equivalents
(€ m 2.5), mainly due to made installments on our
credit facilities made possible due to improved cash
management
▪ Slight decrease in other assets (€ m 0.5)
▪ Increase in inventories (€ m 0.8) and trade receivables
(€ m 1.0) due to seasonality – partly mitigated by
improved working capital management
CURRENT
ASSETS 91.8 90.7
31.12.2020 31.03.2021
FP | 22Financial Situation
Balance Sheet Equity & Liabilities (31.03.2021)
EQUITY & 171.0
LIABILITIES
174.0
in € m
Equity ratio of 8.8 %
(31.12.2020: 7.9 %)
Non-current liabilities
• Decrease in bank liabilities mainly due to made
EQUITY
13.7 installments (€ m 6.9)
15.0
Current liabilities
NON-CURRENT • Increase of other liabilities (€ m 4.0) due to
LIABILITIES 74.2 66.9 seasonality
• Decrease in trade payables (€ m 1.3) due to
seasonality
CURRENT
LIABILITIES
86.1 89.1
31.12.2020 31.03.2021
FP | 23Basic Information
FP Management
Carsten Lind Martin Geisel
CEO CFO
since November 2020 since January 2021
Degree in M.Sc, Ba and EMBA Degree in Business Administration
▪ Long-standing experience in technology companies: ▪ More than 30 years of experience working in the finance
Regional CEO for 13 years in international IT & industry such as ISS Facility Services Holding GmbH and
consulting companies such as CSC and Fujitsu as well ISS Communication Services GmbH as well as Danaher
as Asterion Corporation, a US company listed on the stock market
▪ Before joining FP, he was Managing Partner at Bavaria ▪ Chief Finance Officer of Leica Microsystems, Hach-
Industries Group AG, where he served as Active Lange, and Fluke
Chairman for portfolio companies and inter alia was ▪ Martin Geisel possesses many years of experience in the
responsible for M&A activities areas of treasury, M&A and investment banking
FP | 25FP | 25The FP share
Strong & international shareholder base (in %)
Obotritia Capital KGaA (GER)
# shares 16,301,456 Active Ownership Fund (LUX)
SALTARAX GmbH (GER)
28.01
Market cap approx. Ludic GmbH (GER)
46.58
€ m 46.41
Magallanes Value Investors SA (ESP)
Prime Standard 9.51 Universal-Investment GmbH (GER)
Management Board
5.0
4.09 Freefloat
3.2 3.2 3.3
May 2021
1 As of 26 May 2021, excluding 257,393 own shares.
FP | 26Financial Calendar
2021
Results for the First Results for the First German Eigenkapitalforum,
Quarter 2021 Half Year 2021 Frankfurt
27 May 31 Aug. 23 Nov.
16 June 18 Nov.
Annual General Results for the
Shareholders’ Meeting, Berlin Third Quarter 2021
FP | 27Contact
Francotyp-Postalia Holding AG
Prenzlauer Promenade 28
13089 Berlin
Telephone
Fon + 49 (0) 30 220 660 410
Fax + 49 (0) 30 220 660 425
ir@francotyp.com
Blog
www.fp-francotyp.com/blog
Facebook
www.facebook.com/FPFrancotypDE
Twitter
www.twitter.com/ir_fp
FP | 28Disclaimer
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 2020 Annual Report develop in a way other than
we are currently expecting.
FP | 29You can also read
