Le Groupe La Poste Debt Investor Presentation. November 2012

Transcription

1 Le Groupe La Poste Debt Investor Presentation November 2012

2 Disclaimer This document has been prepared by La Poste solely for use for general investor presentations. This document is not to be reproduced by any person, nor be distributed to any person other than its original recipient. La Poste takes no responsibility for the use of these materials by any person. This document does not constitute or form part of any solicitation, offer or invitation to purchase or subscribe for any Notes referred to in this document and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Accordingly, it is not directed to the specific investment objectives, financial situation or particular needs of any recipient. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decisions (including decisions regarding the suitability of an investment in La Poste s securities) based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this document. The information contained in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance may be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the La Poste, or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain statements in this document are forward-looking, including statements concerning La Poste s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, business strategy and the trends La Poste anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. By their nature, forwardlooking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. La Poste does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward-looking statements speak only as of the date on which they are made. Any opinions expressed in this document are subject to change without notice and La Poste does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. This document is an advertisement and not a prospectus for the purposes of applicable measures implementing Directive 2003/71/EC (the Prospectus Directive ). No prospectus approved by the Autorité des marchés financiers has been or will be prepared in connection with the issue of the Bonds. An offer may be made in France only to (a) persons providing investment services relating to portfolio management for the account of third parties (personnes fournissant le service d investissement de gestion de portefeuille pour compte de tiers), and/or (b) qualified investors (investisseurs qualifiés) acting for their own account, as defined in, and in accordance with, Articles L.411-1, L and D to D of the French Code monétaire et financier and other applicable regulations. This document is directed only at persons who (i) are located outside the United Kingdom, (ii) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services And Markets Act 2000 (Financial Promotion) Order 2005, (iii) are persons falling within Article 49(2)(a) to (d) ( high net worth companies, unincorporated associations etc ) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, or (iv) are persons to whom it may lawfully be communicated (all such persons together being referred to as Relevant Persons ). Any person who is not a Relevant Person should not act or rely on this document or any of its contents. This document may not be published, distributed or transmitted in the United States (including its territories and dependencies, any state of the United States and the district of Columbia). This document does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Bonds which are proposed to be offered by La Poste have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act ). They may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and in compliance with applicable state securities laws. La Poste does not intend to register any portion of the proposed offering in the United States or to conduct a public offering in the United States. Terms used in this paragraph have the meanings given to them by Regulation S under the Securities Act. The distribution of this document in certain countries may constitute a breach of applicable law. The information contained in this document does not constitute an offer of securities for sale in the United States, Canada, Japan or Australia. This document may not be published, forwarded or distributed in the United States, Canada, Australia or Japan. PAGE 2

3 Agenda Group presentation Business review Main financials Key credit highlights PAGE 3

4 Group Presentation

5 Key highlights A limited company (société anonyme) since 2010, a former State administration Strong ties with the French State A 100% French State ownership (77.1% French State and 22.9% Caisse des Dépôts et Consignations - CDC) A 2.7bn capital increase over A key role for the French State Four public service missions (universal postal service, regional planning, banking accessibility, press delivery) A major services group with revenues of 21.3bn in 2011 and three core activities (Mail, Parcels- Express, Banking activities) La Poste is : 1 st distribution network in France, with over public outlets 2 nd employer in France after the French State Rated AA by Fitch (negative perspective) and A by Standard & Poor s on the back of a GRE status (positive perspective) PAGE 5

6 Involvement of French State in La Poste business Status A historical relationship with the French State, continuously reaffirmed 1990 / / Previously a State Administration, La Poste becomes a public industrial and commercial establishment (EPIC) Change of status to become a Société Anonyme Capital increase agreed on by the State and Caisse des Dépôts (CDC) Transposition of the first Postal Directive Postal Regulation Law Creation of ARCEP (regulator) Banking accessibility mission written in law (LME law) New Postal Act, reaffirmation of the 4 public service missions in law Signing of a new regional planning contract , amendment to the public service contract Creation of La Banque Postale Participation in the French Recovery Plan Entering the local authorities financing market PAGE 6

7 Strong ties with the French State Shareholders Governance 100% 1 user representative 1 regional authority representative Jean-Paul Bailly, Chairman & CEO, nominated by decree 8 State representatives 22.9%* 77.1%* La Poste is a limited company Article 1 of Act of 9 February 2010 provides that the share capital of La Poste shall be held by the French State and by other public sector legal entities except for the portion that may be held under employee shareholding arrangements 7 employee representatives La Poste Board of Directors 21 members 3 CDC representatives *After the 600m last tranche of the 2.7bn capital increase in 2013, the State will have a 73,68% share and CDC a 26,32% share of La Poste PAGE 7

8 La Poste is entrusted with 4 public service missions 1 Universal postal service 1 Requested by the European Directive Mail collection and delivery of specified quality at all points in the territory at affordable prices for all users 6 days a week # Additional mission entrusted to La Poste by the French State 4 Press transport and delivery Distribution of press and periodicals 6 days a week, all over the territory at affordable tariffs (regulated) 2 Banking accessibility Via Livret A savings account. 3 Regional planning and development > contact points by law Presence in priority areas (rural, underprivileged, mountain areas) La Banque Postale is required: - to open a Livret A savings account to any individual - to operate free of charge cash withdrawals or deposits from 1.50 Le Groupe La Poste is the best known public service operator in France, where it is ranked as one of the most trusted and useful* companies * Source : La Poste is a company that inspires trust for 73% of French people (IPSOS/La Poste reputation barometer ), and is actively cited as the company that French people trust the most (Top Com TNS Sofres ). Also considered as the most useful corporate in France (95%), ahead of EDF (93%) and SNCF (92%) (Le Monde Viavoice survey April 2012) PAGE 8

9 Benchmark with peers European Directive State initiative Universal postal service includes Press Banking Regional planning 6 days / week 1. Letter mail <2kg 2. Parcels < 20kg Regulated tariffs Banking accessibility 1. Letter mail <2kg 2. Addressed parcels < 20kg 6 days / week 5 days / week Regulated tariffs until April Single letters and printed material <2kg 6 days / week 2. Parcels < 10kg 5 days / week 1. Letter mail <2kg 2. Parcels < 20kg A Universal Service with requirements above peers and above the Directive The only postal operator with four public service missions Source: IPC (International Postal Corporation) Regulatory Database Letter mail <2kg 2. Parcels < 10kg Collection of postal savings for the Italian CDC 11/9/2012 PAGE 9

10 Market Organization Le Groupe La Poste : a major services Group with a unique business diversification profile Turnover 2011 consolidated operating revenue : 21.3bn 51% 24% 25% Mail Parcels-Express Banking activities Parent company Sofipost parcels Parent company express Retail banking Insurance Asset management Mail market European Parcels & Express market French retail banking market La Poste Retail Brand : 17,064 public outlets in France completed by a multi-channel strategy * * JV co-owned by La Poste (51%) and SFR (49%) PAGE 10

11 Banking Activities Parcels - Express Mail The Group has leading positions on its three core markets Group s competitive strengths Anchored in the country historical presence Market positioning (as at 30 June 2012*) Key competitors Very dense network (>17,000 public outlets) #1 France No key competitor 1 Expansion on international mail markets Strong positioning in France and Europe #1 France Extended development abroad (75% of GeoPost revenues in H1 2012) Strong innovation (Predict) Densest road network in Europe #2 Europe (#1 domestic road network) Solid core tier 1 (12.6% in H1 2012) Unique loan to deposit ratio (50.8 % in H1 2012) Transparent, accessible and simple offers Very low cost of risk Development of new activities (insurance, local authorities, corporate) #1 France (network) #6 France (NBI) operators licensed by Arcep, including Adrexo, Althus, Ciblex, Press tissimo, etc., * data 2011 for Parcels-Express PAGE 11

12 Revenue split 2011 International revenue 2011 Revenue 2011 Benchmark with peers European postal operators France Germany Italy UK Swiss 21,341m 52,829m 21,693m 11,044m 6,987m 3 rd 16% 68.3% NA 16.4% 12.7% 24% 16% 7% 51% 52% 26% 22% 52% 3% 22% 23% 16% 8% 0% 75% 29% 1% 8% 12% 50% mail express parcels financial services insurance services retail / post offices mail / parcels / international logistics, incl. parcels & express Postbus other logistics Source : internal, based on operators presentations PAGE 12

13 Liquidity Core Tier Network data 2010 NBI 2011* Benchmark with peers French retail banks 5,231m 13,420m 3,822m 6,329m 6,803m 8,165m 6,968m 6,214m 6 th > public outlets ~7,000 ~1,900 ~3,300 ~4,200 3,250 2,250 ~2,600 1 st 12.7% 1 st 9.0% 9.1% 9.0% 9.6% 11.0% <50% Loans / Deposits 129% 115% 117% 121% NA 136% 1 st Source : banking operators. * Retail NBI PAGE 13

14 Business review

15 Mail Businesses Organisation Private communications Local services Marketing communications 10% 16% Cross-border mail 9% 6% 11.6bn 2011 revenue 59% Business communications 10.6bn* Parent company Addressed mail MAIL Sofipost 1.0bn* Holding company, structured around 4 divisions : Mediapost (marketing and local comm.) Docapost (document and data management) Viapost (press, logistics, eco-mobility) La Poste Global Mail (until 2011) (international mail) Market considerations Volumes : 25bn objects handled in 2011, of which ~15bn addressed Digital revolution Complete opening of the market -2,6% 17,269-5,0% 16,399-3,5% 15,822-2,8% 15,378-5,3% 14,811 Environmental awareness Q Q Q Q Q Traffic paid, not incl. elections (rolling basis) % change * Consolidated data PAGE 15

16 Crossborder Private mail Convenience services Local services Marketing Business comm. Mail - Market environment and key strategic steps % 2011 mail revenues 59% Strategy Capitalize on the growth of Internet, by offering innovative services combining mail and digital Develop new services in terms of Business Process Outsourcing, electronic document management 16% Integrated offers and multi-channel solutions Capitalize on the Group s customer knowledge to grow new offers in direct marketing (acquisition of Mediaprism in 2011, Cabestan & Adverline in 2012 ) 10% Grow on new markets especially on e-logistics activities (acquisition of Orium and Mixcommerce in 2012), on eco-solutions (paper recycling logistics, eco-mobility) 9% Continuing innovation and quality on customer-related products and services 6% Grow on the cross-border market (via the newly established Asendia) PAGE 16

17 Focus on Asendia Asendia : organization & figures >1,000 employees Revenue > 400m Geographical presence Global presence on 3 continents, in over 25 locations in 15 countries Brings together the expertise and networks of Swiss Post (Swiss Post International - SPI) La Poste (La Poste Global Mail - LPGM) Sharing the best solutions in transport & delivery Critical size No significant additional investment Excluding the import and export business in France and Switzerland. The universal postal services in France and Switzerland are not included in the JV. Market characteristics Strong geographic complementarity of SPI and LPGM Ambition International mail = market with revenues > 10bn (2011) Mature market with strong growth in direct marketing, catalogues and small goods Become the leader in B2C solutions for international mail PAGE 17

18 Parcels-Express Organisation and market positions Revenue split Main activity Market share** Parcels- Express Focus on toc* Mainly France Focus on tob* Mainly Europe 65% in the corporate segment (B2C) in France 17.3% in the domestic road express market 5.2bn in 2011 Market considerations International presence Growing e-commerce : E-commerce evolution in France, in bn*** More than 40 countries in the world Market concentration Convergence of toc and tob markets Subsidiaries JV International agreements * ToC: to Consumers / ToB: to Business - ** Source : 2011 Reference Document - *** Estimate ICE-Fevad PAGE 18

19 ColiPoste GeoPost Parcels-Express - Market environment and key strategic steps % 2011 P/E revenues Strategy Strengthen its leadership on road express and make the most of B2B and B2C convergence, via : 71% Organic growth with new enhanced services : extension of pudo (pick-up / drop-off), new payments on delivery, etc. External growth (geographic footprint, useful additions to existing business) Improvement in productivity with route optimization, deployment of IT solutions (e.g. Predict) Investments in hubs and strategic depots 29% Improvement of service quality in France (e.g. further deployment of So Colissimo offering choice in delivery options) Focus on efficiency to improve competitiveness in France (IT / logistics / client support services) PAGE 19

20 Banking activities LBP Since 2006 Businesses Retail banking Property loans 2006 Consumer loans 2010 Corporate financing 2011 Local authorities 2012 Insurance Life insurance Personal risk 1998 Property insurance 2011 Health insurance 2011 Asset management Market drivers NBI and market share 5.2bn 9.1% 6 th NBI of LBP (2011) LBP market share Sight deposits Retail Bank in France by NBI La Banque Postale : an atypical balance sheet 2011 data 186bn 186bn Other Short term portfolio Other, equity, debt 50.8% Growth, demography Interest rates Financial markets Long term portfolio Centralization CDC Deposits H loan / deposit ratio Not including Livret A, LDD & LEP centralized at CDC Regulation o.w. 57bn Livret A Loans 45 ASSETS Actif LIABILITIES Passif Source : LBP 2011, retail banking benchmark PAGE 20

21 Asset mgmt Insurances Retail banking Banking activities - Market environment and key strategic steps % 2011 NBI Strategy Benefit from the extension and completion of the range : Property loans and consumer loans (launched in April 2010) completed by corporate financing (September 2011) 96% * Local authorities financing : short-term offers launched in June 2012, mid and long-term offers by the end of 2012 Continued clients equipment (cards, packs, ) Multi-channel offers Comprehensive insurance range : 2% Personal risk Newly launched products: property and casualty, health insurance, school insurance policies, multi-risk insurance for associations A comprehensive range of products into the equity, bond and property market 2% Extend the private banking business aimed at high net-worth individuals : exclusive negotiations under way with a view to acquiring Banque Privée Européenne *includes commissions on life insurance PAGE 21

22 Financing of French local authorities June 2012 July 2012 November 2012 Launch of short term offers to local authorities Initial 2bn envelope increased to 4bn Launch of medium and long term loans PAGE 22

23 La Poste Retail Brand Presentation of La Poste s network France s densest physical network Key H figures La Poste Retail Brand accounted for : 18% of Mail revenue 28% of ColiPoste revenue 95% of La Poste Mobile sales 100% of net collection for individuals 17,064 public outlets all over the French territory 2 million daily visitors, 78% of the population visit post offices, 70% of which at least once a month 100% of property loans 69% of consumer loans PAGE 23

24 La Poste Retail Brand Service quality : continuous progression La Poste Mobile Visits with access to service < 5 minutes* 77.7% 86.3% 91.7% JV co-owned by La Poste (51%) and SFR (49%) Development despite the impact of the newly-arrived Free on the market H H H Revenue : 34m Group share (H1 2012) 165,000 sales on the period (H1 2012) Average speed of access to service, in minutes** Growth of customer base from April : 552,000 customers (end June) Whole range now offered in 10,000 post offices H H H Notes : (*) short operations, e.g. registered letter (1,000 post offices) (**) short operations at counter (1,000 post offices ) PAGE 24

25 La Poste in a digital world Multichannel strategy in each business line Mail : digital products & services (e-marketing, electronic archiving, Digiposte, certification ) La Banque Postale : cross-channel subscriptions, mobile banking, complete remote banking service Parcels-Express: tracking, labels automation as major differentiators Group Digital Ambition Unique footprint in e-commerce Le Groupe La Poste : the last-mile specialist, the privileged partner for e-merchants Parcels and express customer-oriented delivery products (So Colissimo, Predict, payment on delivery...) Mail s know-how in direct marketing, e-commerce logistics, CRM La Banque Postale secured online payment solutions 4 audience portals Appointment in Sept 2012 of a Senior VP in charge of Digital offers reporting directly to CEO Further value and draw full benefit of La Poste s online presence Increase online sales Dynamic online presence as well as mobile apps, websites, social networks Significant audience* of 12m unique visitors Online sales of products and services Notes : (*) cumulative audience, November 2011 PAGE 25

26 A strong and continued commitment to Corporate Social Responsibility Continuing action to reduce CO2 emissions: Launch in 2012 of the carbon neutrality voluntary process: all Mail and Parcels offers carbon neutral since 1 March 2012 and all express offers since 1 July 2012 Electric vehicles: Acquisition of 10,000 vehicles by ,600 in operation end of 2012 Strong increase of buildings accessible to people with reduced mobility 48,5% 58% A constant effort to ensure gender equality % of women in the managerial staff : 45% in 2011 (+3 pts vs. 2006) % of women in senior executives : over 25% in 2011 (+13 pts vs. 2006) 40% of promoted senior executives in 2011 are women 51% of women in the total headcount Commitment to people with disabilities: Signing of an agreement on March 2012 covering a number of areas (recruitment, training and access) PAGE 26

27 Main financials

28 Key 2011 / H consolidated figures Change on H H FY 2011 Published data Published data Revenue +0.9% 10.9 bn 21.3bn EBIT +26% 1 632m 670m Net profit Group share +16% 2 437m 478m (1) Stable excluding impact linked to Greek debt provision for Greek debt of 30m in H1 2012, 241m in FY 2011 and 158m in H (2) 4,6% excluding impact linked to Greek debt PAGE 28

29 Mail : a stable margin despite declining volumes Evolution of Mail revenue H H EBIT - Mail - 1.9% 8.2% 8.1% 5, , % o.w. development of Sofipost & election impact Revenue H Volume* Mix/price Services & elections Perim & change Revenue H H H EBIT/Rev REX / CA Benchmark Mail Division Revenue +1.0% Incl. parcels (24% CA), +12% -4.6% domestic Addressed volumes -3.2% ~-8% -3.4% -5.4% PAGE 29 Sources : postal operators (data 2011 for Gruppo Poste Italiane)

30 Parcels-Express : strong growth in revenue - stable EBIT Evolution of Parcels-Express revenue H1 2011/2012 EBIT - Parcels-Express 2, % , % % +4.8% Organic volume effect Revenue H Volume Price & other Perim & change Revenue H H H EBIT/Rev REX / CA Competitors Express Revenue +1.5% +10.3% Volumes % Sources: operators +2.8% +3.5% PAGE 30

31 Banking activities Commercial Activity Outstanding customer deposits ( bn) +2% +1% LBP Market share* % on sight deposits (all customers) 25.9% on Livret A H Property & consumer loans outstanding ( bn) +16% +2% Consumer 2bn LBP Market share* Property 43bn 5.2% on property loans (outstandings) 1.5% on consumer loans (outstandings) H Number of active clients (millions) % LBP Positioning 3 rd retail bank by number of customers *Based on LBP sources PAGE

32 Banking activities : solid figures and a controlled cost of risk in a difficult market environment NBI evolution - H1 2011/2012 GOP and EBIT in m 83.6% 83.9% Operating ratio 2, , m linked to Greek debt GOP Cost of risk o.w. 30m linked to Greek debt EBIT H Interests Commissions Other H H H Marginal residual exposition to Greece : 17m as at 30 June 2012 Competition* NBI Retail banking REX -0.3% +0.8% +0.2% -6.8% -3.6% -0.6% * : presentations & press releases PAGE 32

33 Financial strength As at 30/06/2012 In m H FY 2011 Net debt CFO* / Net debt Equity Group share Net debt / Equity 3,441 4, % 26.8 % 7,194 6, Equity up 411m after allocation of the period s retained earnings and distribution of dividends Decrease in net debt of - 1,103m after payment of the 2 nd tranche of the capital increase in April ( 1.050bn) PAGE 33 DIRECTION FINANCIERE DIRECTION DE LA COMMUNICATION FINANCIERE Note : (*) Cash flows from operations (CFO) = EBITDA + dividends received - taxes paid - financial charges paid. Ratio calculated on a rolling twelve-month basis

34 6,000 5,000 4,000 3,000 2,000 1, x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x - A strong balance sheet Net debt evolution ( m) Key H figures 4,804 4,544 3,441 An average cost of debt of 3.3% for an average maturity of 6.5 years A fixed rate ratio of 80% 1.1x 0.7x 0.5x Focus on the 2.7bn capital increase H Net Debt Net Debt/ Equity The French State has approved a capital increase of 2.7bn: Equity evolution ( m) 6,783 7, bn from the State 1.5bn from Caisse Des Dépôts et Consignations 4,465 The cash injection related to this capital increase is divided as follows: A first tranche of 1.05bn was paid in April 2011 of which 860m were injected into La Banque Postale A second tranche of 1.05bn was paid in April 2012 Another 600m is to be paid in H A sustainable and continuously improving leverage combined with a low cost of debt PAGE 34

35 The Ambition 2015 strategic plan Key strategic goals Group Strategy focus on sustainable and lasting growth of each business line supported by a dynamic innovation policy Mail: customer-oriented products, new integrated services, new markets (e-logistics, digital mail) Parcels-Express: increase in business volumes in line with growth of e-commerce and BtoC segment La Banque Postale: benefit from the full potential of the extended range of services Maintain special focus on investment in strategic sites, continuous modernisation, IT improvements, and electric vehicles The strategy will be rolled out while focusing on societal and environmental responsibility The multi-channel strategy will be further deployed in all business lines The Group s financial structure is backed by support from shareholders : after the second tranche of 1.05bn in 2012 within the 2.7bn capital increase subscribed by the French State and CDC, another 600m will be paid in 2013 PAGE 35

36 Solid credit ratings Fitch Standard & Poor s Outlook changed from stable to positive on 27/07/2012 AA / F1+ / Negative Outlook went mechanically from stable to negative on 20/12/2011 following the change in the French State outlook, in due application of the «Public sector entities» methodology A / A-1 / Positive The positive outlook reflects S&P s expectation that La Poste will likely use a sizable share of the capital increase to reduce its adjusted net debt, which, together with higher dividends from LBP, will enable LP to improve its FFO-to-debt ratio to a level commensurate with an intermediate financial risk profile. It also reflects S&P s expectation that La Poste will continue to benefit from a very high likelihood of timely and sufficient support from the French state if the need were to arise. A BBB+ BBB PAGE 36

37 Key Credit Strengths Roadshow Presentation 10 octobre 2012

38 Key Credit Strengths Overview La Poste, a unique company with strong credit pillars 1 Leading positions on its three core markets 4 A key role for the French State 2 A proven capacity to adapt its business model and a growth strategy well on track 3 A prudent financial profile and a strong balance sheet PAGE 38

39 Distribution Banking Activities Parcels - Express Mail Leading positions on its three core markets 1 st mail operator in France 1 st parcels operator in France 1 st domestic road express network in Europe 2 nd express operator in Europe 6 th retail bank in France by NBI Unique loan to deposit ratio 1 st distribution network in France, with over 17,000 public outlets PAGE 39

40 High-value assets Strong Brands Very strong brand reputation in France La Banque Postale : one of the most trusted retail bank in France Successful launch of La Poste Mobile in 2011 High Value Real Estate A major real estate national portfolio - 4.5m sqm owned - 4 billion in the 2011 Group accounts Major brands The Group s leading strategy is backed by high-value assets PAGE 40

41 Mail Parcels Express Banking Retail Brand Proven capacity to adapt the business model 1. Industrial modernization Unoptimised industrial and logistical structure: 97 processing sites in 2003 High levels of manual intervention CQC¹ in 2006: new generation platforms ColiPoste logistics : no flash, no bulk Basic IT services Poor IT systems Old fashioned outlet design Low-quality IT systems Optimised network State-of-the art equipment with 41 new generation platforms covering 90% of France 95% of territory under Facteur d Avenir (delivery modernisation programme) New hubs and optimised operations (GeoPost) Densest road network (GeoPost) Industrial modernization : automation of parcels processing (97% of ColiPoste sorting) and bulk, renewal of half the platforms (ColiPoste) Multi-channel access to products and services 6,350 cash dispensers (vs in 2010) Modernisation of outlets : customer-oriented post offices Computerised back-offices 14,291 Automated Machines : 5,291 franking and stamp dispensers and 9,000 cash dispensers, change machines and cheque deposit boxes Optimized industrial tool and automation of processes allowing cost reductions Note 1. Mail Quality Project PAGE 41

42 Mail Parcels Express Banking Retail Brand Proven capacity to adapt the business model 2. An improved quality of service Low next-day mail delivery: 65.7% in 2003, improved to 81.2% in % D+2 parcel delivery in 2003 Unidentified banking spaces in post offices Quality of service with room for improvement Only 51% customer satisfaction on waiting time Record 87.2% quality of service in % D+2 (Coliposte) 95% D+1 (DPD) 1,236 cheque deposit boxes deployed in 2011 to improve cheque cashing time (J+1) Appointment under 48h (85% in 2012) La Banque Postale chez soi (launched Nov. 2011) Increased service quality : 75% satisfaction on waiting time (only 2,25 minutes for short operations in the first 1000 outlets) 1,060 AFNOR certified post offices (certification of service) A service quality strengthening La Poste s brand reputation PAGE 42

43 Mail Parcels Express Banking Retail Brand Proven capacity to adapt the business model 3. An enhanced offer and increased international presence Limited Internet penetration Limited International presence GeoPost : International presence in 15 countries ColiPoste : limited choice in point of delivery Services Financiers de La Poste Limited range of products, constrained by law, to postal bank accounts, property and loans with prior savings Mail and Parcels activities Products and services only for individuals Growing importance of Sofipost, dedicated strategy through acquisitions to become a major multi-channel player Customer oriented offers (Online mail, Digiposte ) Enhanced international presence: Joint venture with Swiss Post External growth and extended international presence : more than 40 countries Customer-oriented solutions: tracking, choice of delivery (So Colissimo), green packages, etc. Innovating products for GeoPost (Predict) Implementation of solutions to make the most of BtoC market (Pudo points relais progressively covering Europe) A complete range of for individuals : retail banking, insurance and asset management A widened client base : legal entities and local authorities (2012) Mobile phone services: Prepaid Cards Launch of La Poste Mobile in 2011 Enhanced offer with a new client-oriented outlet concept 43 Since 2003, La PAGE 43 DEBT Poste INVESTORS has ROADSHOW successfully PRESENTATION demonstrated its ability to innovate and meet clients demands with simple, transparent and accessible products

44 Equity Net debt Margin Revenue A prudent financial profile and a strong balance sheet Revenue : CAGR of +0.9% per annum A steady operational margin between 3% and 4% since 2008 Substantial improvement of net debt 4,804 4, x 0.7x 3, x 4.0x 3.0x 2.5x 2.0x Net Debt 1.5x Net Debt/ Equity H ,783 7,194 Strong increase in equity Group share 4,465 Equity Group share H PAGE 44

45 Ample liquidity Liquidity sources (June 30th, 2012) Bonds maturity profile ( m) Cash and cash equivalents and other asset items : 3.7bn Total undrawn resources: 2.2bn, of which: 1,000 1,000-1,075m of commercial papers - 1,150m committed, the details of which are in the table below: m Amount Undrawn Exp Date 600 Syndicated credit facilty * 500 Bilateral Line Bilateral Line The syndicated credit facility of 650m was successfully renegotiated in 2011 * 1 year extension option activated in October 2012 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Successful renegotiated credit facility in Smooth debt redemption profile with no refinancing wall and a very strong access to liquidity totalling 5.9bn PAGE 45

46 Strong access to capital markets H Breakdown of Gross Debt Bonds table 4% 1% 7% 2% 3% 7,106m Maturity Issue date Amount ( m) Euro Bonds Jul Jul Jun. 2023* Jun ,000 Jul Jul Nov Nov Nov. 2021* Nov ,000 83% Feb Feb Bonds La Poste Saving Bonds CP/BT Deposits & guarantees Accrued interests Other borrowings Feb Feb GBP Bonds Dec. 2016* Dec CHF Bonds Jul Jul Source: Bloomberg 04/09/2012, *Bonds included in Markit iboss index Sub-Sovereign classification A long dated and successful debt market oriented financing strategy La Poste holds a strong footprint on the bond market PAGE 46

47 A key role for the French State Universal Postal Service provider for a period of 15 years from 1 January 2011 A track-record of strong financial support by the State Major social integration mission : regional planning and banking accessibility Financing French local authorities PAGE 47

48 Issuer La Poste Offering Summary Rating Expected Rating of the Notes Currency AA (neg.) by Fitch and A (pos.) by S&P AA (neg.) by Fitch and A (pos.) by S&P Euro Maturity Long dated Size Benchmark Format Fixed Rate Listing Euronext Paris Denominations 100k Use of proceeds General Corporate Purposes Roadshow November Joint Bookrunners Crédit Agricole, Deutsche Bank, HSBC PAGE 48