Investor presentation May 2015 DIRECTION DE LA COMMUNICATION 1 - PowerPoint PPT Presentation

Investor presentation May 2015 DIRECTION DE LA COMMUNICATION 1

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. • 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, forward-looking 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. PAGE 2

Agenda Key credit highlights page 4 Group presentation page 6 - 12 pages 6 - 9 Strong ties with the State  pages 10 - 12 A major multi-business services Group  page 13 - 22 Business review Financial data page 24 - 35 pages 23 - 31 Key figures FY 2014  pages 32 - 34 Financial credit profile  Outlook page 35 - 38 PAGE 3

Key credit highlights DIRECTION DE LA COMMUNICATION 4

Le Groupe La Poste’s fundamental strengths Stable long-standing shareholding structure (by law), critical role for the French State Low business risk profile Successful execution of thanks to an unprecedented large-scale modernization diversification model and a to date balanced activities portfolio Major market-leading Strong credit profile businesses with unique assets and positions Solid balance sheet along with active debt management: reduced debt leverage PAGE 5

Group presentation Strong ties with the State A major multi-business services Group DIRECTION DE LA COMMUNICATION 6

A historical relationship with the French State, continuously reaffirmed 1990’s 2000’s 2010’s 1990 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Capital increase Status Société EPIC subscribed Anonyme* by State & CDC Postal Act Postal Act Creation of ARCEP Decrees 4 missions Acts/ reaffirmed Operator Involvement of State in law In law of Vital Importance La Poste, designated provider of the Universal Service for 15 years as from 1 January 2011 missions service Public Public service contract 2013-2017 Public service contract 2008-2012 + specific agreements covering each mission In business Creation of Participation Entering Boosting La Banque in French plan the local social home Postale de relance authorities ownership financing programs market * Article 1 of Act 2010-123 of 9 February 2010 The share capital shall be held by the State & by other public sector legal entities except for the portion that may be held under employee shareholding arrangements PAGE 7

4 public service missions entrusted to La Poste beyond EU obligations 4 public service missions governed by law and by specific agreements Missions historically enshrined in French Law (Law 20 May 2005 supplemented 9 Feb. 2010, transposing EU Directive for universal postal service) Missions governed by a public service contract (the latest for the period 2013-2017 signed 1 July 2013) Universal postal Regional planning Press transport Banking service and development and delivery accessibility agreement No additional Local postal coverage agreement, Schwartz Agreements French Law 2 July 1990 Specific agreement the latest for 2009-2015, Specific decrees for 2014-2016 signed Jan 2014 new agreement under way compensation     Compen- sation Compensation fund € 170m in 2014* € 150m in 2014* € 242m in 2014* not activated *Compensation is provided under different mechanisms (tax exemption, public subsidy…). EU compatible compensation schemes     Compatible Compatible Compatible Compensation fund provided by the EU Directive “they only partially offset the net costs “It does not exceed the net cost for of the public service tasks” discharging public service obligation” PAGE 8

Market perception critically close to that of the French State Credit ratings Market perception % AA / A-1+ / Negative AA / F1+ / Stable 6 5 A / A-1 / Stable A+ / F1 / Stable 4 3 Rating affirmed in AA-/F1+/Stable October 2014 affirmed in September 2014 2 Lowered by one notch in December 2014 1 La Poste bond 06/2023 following France’s French OAT 04/23 rating downgrade (PSE methodology) 0 PAGE 9

Group presentation Strong ties with the State A major multi-business services Group DIRECTION DE LA COMMUNICATION 10

A major multi-business services Group with a unique diversification profile € 22,163m € 719m Revenue 2014 EBIT 2014 La Banque Postale Services-Mail-Parcels GeoPost 2 3 1 % Group revenue 50.2% 21.9% 25.5% Organization /Brands Mail Services Parcels Logistics Retail Asset International Insurance banking management Market Mail and Parcel market, Retail banking European CEP market mainly in France in France La Poste Network Digital Services 4 5 2.2% servicing all business units * Relational performance Operational efficiency E-services A French key employer Strong international presence 257,891 employees PAGE 11 * JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS 11 as of 1/1/2014

A multi-business model compared to the great majority of European postal operators * FY 2013-2014 Revenue 2014 € 22 bn € 8 bn € 57 bn € 28 bn € 12 bn € 4 bn Revenue abroad 17.9% 15% 69% ~0% 17% 39% split in % Revenue 25 2 17 17 27 28 48 50 100 9 22 14 72 82 83 retail outlets Network of 0 17,104 2,222 13,000 13,310 2,550 Network of Post Office Ltd 44% 30% 100% 0% 100% (separated from partnerships partnerships partnerships partnerships partnerships Group in 2012) Multi-business models Specific models Postal-centered models Sales 2014, revenue split 2013 (2014 not available yet) mail parcel express/logistics banking/insurance bus PAGE 12

Business review Services-Mail-Parcels 1 5 Digital Services GeoPost 2 La Poste La Banque 4 3 Network Postale DIRECTION DE LA COMMUNICATION 13

Services-Mail-Parcels 1 5 Unique door-to-door everyday services 2 4 3 Business & revenue split Key strengths Revenue Volumes  Ability to address the growing and untapped local & in-home services market (t rust, daily Cross-border  13bn addressed mail contact with individuals and corporates)  9bn unaddressed mail  Optimized state-of-the-art industrial  ~270 million parcels and logistical network ( € 3.4bn investment over € 11.4bn 2003-2010)  Expertise in order preparation in 20 e- logistics platforms Market positioning* Market drivers  Digitisation impact on (addressed) mail #1 addressed mail Mail volumes: #1 unaddressed mail  2012: -5.9% Parcels  2013: -5.5% #1 BtoC parcels  2014: -5.8%  Growing e-commerce driving the Parcels #1 e-logistics Logistics #1 press delivery market:  2007-2013: +22% (CAGR French e-commerce) #1 export mail Cross-border  2013: 8.8% of online sales in French total Top 3 Europe retail sales PAGE 14 * Source: ARCEP for mail, internal for parcels, market publications (Logistique magazine) for logistics, IPC market audit and internal sources for cross-border