CONQUERING THE FUTURE Le Groupe La Poste Credit update and - - PowerPoint PPT Presentation
CONQUERING THE FUTURE Le Groupe La Poste Credit update and - - PowerPoint PPT Presentation
CONQUERING THE FUTURE Le Groupe La Poste Credit update and considerations on upcoming hybrid transaction April 2018 Disclaimer IMPORTANT: You must read the following before continuing and, in accessing such information, you agree to be
IMPORTANT: You must read the following before continuing and, in accessing such information, you agree to be bound by the following restrictions. This document has been prepared by La Poste solely for use for general investor presentations in relation to a contemplated issue of notes. This document includes a summary of certain proposed terms of an offering of notes as currently contemplated and has been prepared solely for information purposes and on the basis of your acceptance of the below restrictions and does not purport to be a complete description of all material terms or of the terms (which may be different from the ones referred to herein) of an offering that may be finally consummated. This presentation is for information purposes only and does NOT constitute a prospectus or other offering document in whole or in part. Persons who intend to purchase or subscribe for any of the notes of La Poste in the context of the contemplated issue must make any decision to purchase or subscribe solely on the basis of the information contained in the prospectus prepared in connection with the offering of the notes which will be submitted for approval by the French Autorité des marchés financiers (the Prospectus). In particular, La Poste draws your attention on the risk factors relating to La Poste, its group and to the notes, as described in the “Risk factors” section of the Prospectus. In the event of any discrepancies between this document and the Prospectus, the Prospectus shall prevail. This document is provided solely for your information on a confidential basis and may 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. This document shall not form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. 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
- therwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
Any investors or prospective investors are required to make their own independent investigation and appraisal of the business, financial condition and prospects of La Poste and the nature of any relevant notes and no reliance may be placed upon the information herein for such purposes. Recipients should consult with their own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that they deem it necessary, and make their own investment, hedging and trading decisions based upon their own investigation and judgement and advice from such advisers as they deem necessary and not upon any view expressed in this material.
Disclaimer
PAGE 2
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. The notes under the contemplated issue will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or any securities regulatory authority of any State or other jurisdiction of the United States. Subject to certain exemptions, notes may be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. This communication is only being distributed in France to (a) persons providing investment services relating to portfolio management for the account
- f 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, other than individuals, as defined in, and in accordance with, Articles L.411-1, L.411-2 and D.411-1 of the French Code monétaire et financier. This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act
- r rely on this document or any of its contents.
For a description of certain restrictions on offers and sales of the contemplated notes, please refer to the section “Subscription and sale” in the
- Prospectus. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution
- r use would be contrary to law or regulation.
Nothing in this document should be construed as legal, tax, regulatory, accounting or investment advice or as a recommendation or an offer, commitment, solicitation or invitation by La Poste [or the Joint Lead Managers] to purchase notes from or sell notes to you, or to underwrite notes,
- r to extend any credit or like facilities to you, or to conduct any such activity on your behalf.
Disclaimer
PAGE 3
Agenda
- 1. Group overview
- 2. Financial results – FY 2017
- 3. Strategy
- 4. Funding and liquidity
- 5. Rationale and structure for the
upcoming hybrid transaction
PAGE 4
CONQUERING THE FUTURE
Group
- verview
A multi-business model
Stable and long-term shareholders
1) Except for the portion that may be held under employee shareholding arrangements
PAGE 6
100% State owned
- The share capital shall be held by the
State & by
- ther
public sector legal entities1 (Article 1 of Act 2010-123 of 9 February 2010
Critical role in France with 4 public service missions
Additional missions entrusted by the French State
100%
26.32% 73.68%
Compensations defined until 2019-2020 under a « Public Service Agreement » Regional planning and development
>17,000 contact points by law: presence in priority areas (rural, underprivileged, mountain areas)
Banking accessibility
Required: to open a Livret A savings account to any individual, and to
- perate
free
- f
charge cash withdrawals or deposits from €1.50
Press transport and delivery
Distribution of press and periodicals: 6 days a week, all
- ver the territory, at affordable prices (regulated)
Universal Postal Service
Collection and delivery to all points in the territory at affordable prices and determined quality, 6 days a week
- Chairman and CEO appointed by the
State
- Board members appointed by public
shareholders (with the exception
- f
employee representatives)
A strategic company for the French State
1) French regulator of the electronic communications and postal sectors (Autorité de Régulation des Communications Electroniques et des Postes − Arcep)
French State 11 January 2017: signing of the 4th local postal coverage agreement for 2017-2019 (French State, French Mayors' Association, La Poste) 16 January 2018: signing of the 2018-2022 Public Service Agreement (French State, La Poste) Setting of:
- the 2018 price cap pertaining to the Universal
Postal Service (with framework amendment)
- The 2019-2022 price cap
- Reinforced postal presence
- New indicators for quality of
service
- Renewed citizen
commitments
- Increase set at 5% in 2018
- Annual average increase set
at 5% for the period, with a mid-term revision clause
ARCEP1
PAGE 7
Reaffirmed Public Service Missions in 2017
- Operating profit: €1,012m
- Net profit, group share: €851m
- International revenue: 24.4%
- 253,219 employees1, o/w 34,484
abroad
- 17,126 retail outlets in France,
servicing all business units
- 49.3% post offices
- 50.7% partnerships
Services- Mail-Parcels 46.1% Geopost/DPD 28.1% La Banque Postale 23.4% Digital Services 2.2%
Multi business economic model
Revenue €24.1bn
Key indicators
1) Group employees in Full Time Equivalent on average
PAGE 8
A major French services Group …
Split of revenue
€177bn of deposits (o/w €71bn regulated centralized deposits at CDC) out of a total
- f €231bn
Unique balance sheet Sound capital
CET1 ratio 13.1% (phased-in)
Strong liquidity position
L/D ratio 81%
Expert in digitization and digital platforms Group’s digital transformation
65,000 postmen daily connexions 13.6m monthly unique visitors on www.laposte.fr 2.2m users of Digiposte digital safe E-health platform: 39m pharmaceutical files daily hosted and managed, deployed in all pharmacies and in 400 hospitals International 6% Logistics 5.5% Parcels 15% Services 1.5% Mail 72%
Split of revenue B2B / B2C revenue
B2C ~37% B2B ~63% 78%
- utside
France 22% France
Split of revenue
Insurance 4% Asset management 3% Retail banking 93% B2B secure solutions 73% Digital sales & projects 13% B2B marketing solutions 14%
Split of revenue
Services-Mail-Parcels
Revenue 2017 €11.4bn EBIT 2017 €600m
GeoPost/DPD
Revenue 2017 €6.8bn EBIT 2017 €430m Mail volumes
Unaddressed Press copies
~10.5bn
Addressed
~10.6bn ~1bn
Parcels volumes
In million units
318m
Express volumes
(in million units)
1,228m
La Banque Postale
Revenue 2017 €5.7bn EBIT 2017 €870m
Digital Services
Revenue 2017 €672m EBIT 2017
- €20m
PAGE 9
Source : Le Groupe La Poste, December 2017 figures.
… with multi-business economic model
Unique diversification profile
Multi-business Logistics Postal-centered
Express Mail & Postal parcels Logistics Financial services Other services
Financial services & Insurance
~€24bn ~24% ~€6.7bn ~14%
2017 Revenue / % international
~€11bn ~22% ~€3bn ~26% ~€3.5bn ~30% ~€63bn ~€33bn 70% NS ~€2bn ~8%
28% 23% 2% 46% 19% 17% 39% 26% 22% 78% 12% 18% 65% 6% 100% 2% 86% 12% 23% 2% 44% 28% 10% 81% 9% 11% 1% 89%
~€0.7bn ~7%
Source : Le Groupe La Poste and corporate annual reports
Senior Rating: Moody’s / S&P / Fitch
- Baa2
A3 Baa2
- A
AA+ BBB
- BBB+
- BBB
- A+
- BBB+
BBB
- PAGE 10
Equity1,2 Net debt1,3
Net debt1/Equity2
(in €bn) (in €bn)
PAGE 11
Real estate ~€3.7bn in 2017
Largest item
- n the Group balance sheet
One of the largest real estate portfolios after the State
12,219 buildings/facilities 10.2 million m2, 38% directly owned
High-quality, highly diversified assets
From small post offices to very large facilities (from 9 to 39,000 m2 )
2017 2016 2015
10.9 11.4
2014
4.5
2009 2013 2011
4.1 9.7 7.5 9.1
2010 2012
6.8 8.6
2017 2016
3.8
2015
5.5 3.8 4.8 3.7
2011 2012 2010
4.0
2009
4.5
2014 2013
3.5 3.7 1.5 2015 2014 0.0 2012 2011 1.0 2016 2010 2009 0.5 2017 2013 0.34 0.67 0.44 0.46 0.38 1.08 0.44 1.36 0.34 1) Does not take into account the banking activity for which the concept is not relevant 2) Group share 3) USD hybrid full in debt
A solid balance sheet, with a low leverage and a significant real estate portfolio
Stable long-standing shareholding structure (by law), critical role for the French State Low business risk profile thanks to an unprecedented diversification model and a balanced activities portfolio Major market-leading businesses with unique assets and positions Solid balance sheet along with active debt management: reduced debt leverage Strong credit profile In-depth transformation
- f the Group underway
PAGE 12
Le Groupe La Poste’s fundamental strengths
CONQUERING THE FUTURE
Financial results FY 2017
Written driving licence test
Revenue Operating profit
after share of net profit from companies under joint control
Operating margin Financial result Income tax Share in profits of equity associates Net profit Group share 24,110 23,294 2016 1,012 975 4.2% 4.2% 851 849 (168) (169) (248) (104) 297 191
In €m PAGE 14
Consolidated P&L – a stable performance in 2017
+3.5% ∆ in % +3.8% stable +0.3%
- 0.7%
n.m +55.5%
+2.5% at constant change and scope +12.6% at constant change and scope and excluding non-recurring items1 1) +€107m capital gain from the sale by La Banque Postale of Visa Europe securities and +€60m securities revaluation after the acquisition by GeoPost of the remaining 50% share of Armadillo. Mainly linked to CNP Assurances and, for the 1st year, BRT
2017
2016 amount particularly low due to little or no taxable income
Revenue (in €m) Operating profit (in €m)
Services-Mail-Parcels
2017 key financials per business unit (1/2)
GeoPost
253 2017
11,424
Subsidiaries Other
659 1,748 93 112 9,016
Parcels
+0.6% 548 89
- 561
84
Mail volume Elections
1,659
Mail price
11,354
2016 9,147 221 423
Volume Scope
- 68
Other Price
73 3 2016
6,166
Change
6,816
+10.5% 2017 +18.2% adjusted3
Volume growth: +9.8% Addressed volumes:
- 6.8%
stable at constant scope and exchange rates +8.2% at constant scope and exchange rates
Volumes: +8.1%
1 2
Mail and Services Parcels
137 176 488 390
- 41
600 584 34 2016 2017 +2.7%
Subsidiaries
1
- 1.8%
2016 438 430 2017 PAGE 15
1) Including mix and working days 2) Volumes at equivalent working days 3) Adjusted for scope, exchange rates and the impact in 2016 of the revaluation of securities in relation with the acquisition of the 50% not already held in Armadillo for €60m
La Banque Postale
24 78
5,687
Retail banking1 2016
5,602
Asset management 2017 9 +1.5% Scope
- 26
Insurance 82.4% 81.8% (CoR/outstanding)2 0.22% 0.22%
2017 key financials per business unit (2/2)
Digital Services
21 19 29 Scope +10.4% 2017
672
- 5
Mediapost communication Docapost Digital activities for branches
609
2016 +5.7% at constant scope and exchange rates
Ametix, Applicam, Probayes
834 870 181 192 2017 Operating profit Cost of risk 2016
- 20
- 6
2016 2017
- 13
€m +3.4% at constant scope and excl. home savings provision and non-recurring items1
- /w:
- Net Interest Margin -€28m
- Commissions & other +€106m
Including online sales & Digiposte
+4.4% Cost income ratio
Ciloger
€0m out of €20m of assets impairments Revenue (in €m) Operating profit (in €m) PAGE 16
1) Including impact of change in home savings provision (€142m reversal in 2016 versus €69m reversal in 2017) and impact of +€107m capital gain from the sale of Visa securities in 2016 2) CoR/outstanding relative to credit business (i.e. excl. Insurance and toll)
- 101
289 CAPEX
- 1,075
Net debt change
- 149
Asset disposals 18 Cash flow from
- perating
activities 1,827
- 335
Interest and dividends Others
- 677
External growth Services-Mail-Parcels in €m
1 2 3
1 075
318 274 28 260 68 127 2017
<<<
GeoPost Network Support & Structures Digital Services Real Estate 2016
1,448
- 917/+21
- 320
+91
- 237
- 149
- 62
Adjusted cash ratios4
FFO/ Net Debt
27.4%
Net Debt/ EBITDA
3.2
Net debt change
<<<
17 546 109 5 2017
677 Services-Mail-Parcels GeoPost Digital Services Other PAGE 17
1) Excluding banking activities, including dividends from equity associates 2) Gross Capex (€1,075m) excluding banking activities, net from vehicle disposals (€18m) 3) Excluding vehicle disposals 4) Main adjustments: operating leases and post retirement benefits
Net debt change and cash ratios
CONQUERING THE FUTURE
Strategy
Parcels sorting in a DPD hub
Artificial Intelligence:
leveraging on knowledge of customers base, and increase use of Big Data
Decreasing mail volumes1:
impacting historical business
Fast growing E-commerce2:
creating significant opportunities for parcel delivery
OAT 10 years Addressed volumes in m items
Changing world Interest rates3:
impacting banking activities
Energy transition:
creating new solutions for urban logistics and recycling
e-commerce revenue B2C Europe, in €bn
More digital society Ageing population with new needs (« Silver economy »)
2016 10,603 11,529 2017 2014 12,883 12,045 2015 603 2015 460 2014 531 403 2017e 2016 0.46% 2016 2017 0.81% 2015 1.66% 2014 0.85%
+14%
- 4%
- 8%
+15% +14%
- 7%
Environment: challenges and opportunities
PAGE 19
1) La Poste, in France 2) Source : Report e-commerce Foundation 2017 3) Average annual rate – Source : Banque de France
Development
Speed up development of existing businesses Conquer new markets
Synergies Public service missions
Strengthen cooperation between business units 5 high-priority shared projects1
- Energy transition
- E-commerce
- Urban logistics
- Modernizing public action
- Getting to know customers better
Ensure and modernize public service missions
Supported by external growth
Performance
Improve competitiveness through a constant effort on costs Build and negotiate a social pact
Major transformation underway
Strategic plan « La Poste 2020 : conquering the future »
PAGE 20
1) Jointly managed by business units
Parcels, key driver for growth
Services-Mail-Parcels Towards the world of services
269 318 2016 +8.1% 2017 297 2015 274 2014
Increasing parcels volumes
(in million units)
Performance Expand in local home services
New local services:
written driving licence test (1 million tests, 54% market share)
Energy transition Silver economy
- Reduction in the number of facilities to adapt to mail
volume decline: 33 industrial mail platforms in 2017 (vs. 46 in 2015)
- Rationalisation of logistics network with a new Mail-
Parcels industrial scheme being rolled out
- Productivity efforts2
Add value to mail delivery
1
71 24 15 84 46 2017 2016 155 4 2015 49 2014
New services Silver economy
Revenue (in €m)
- Simplify access to and use of mail for businesses and
individuals
- Enhance services in advertising mail (coupling print
and digital, more precise targeting)
- Increase international flows
New services: evening deliveries, collection from individual letterboxes
(52.7% stake)
- Reduction of unit transportation cost
(JV with Suez)
PAGE 21
1) At equivalent working days 2) 117,506 permanent employees on average in France in Services-Mail-Parcels in 2017 (~-10% vs. 2014)
With active external growth in 2017
Fresh food delivery Same-day delivery Medical-temperature-controlled logistics
- Emphasis placed on operational performance (first-
time delivery, cost control)
- Monitor profitability of external growth operations
Jadlog (60%) BRT (37.5%) DPD Russie/SPSR (77.9%) Stuart & Delifresh (100%) Ninja Van (minority shareholding)
Delivery on sundays by Chronopost1 Precise (interactive service) 32,000 Pick-up and drop-off points 1,000 automated lockers In-home services Out-of-home services
GeoPost presence
GeoPost Continued conquest and innovations
Launch innovative solutions and services Performance Extend multi domestic network Expand in new markets
PAGE 22
1) In the 15 major French cities
Digital strategy acceleration
La Banque Postale Development and diversification combined with low risk profile
Low risk appetite Commercial momentum and diversification
KissKissBankBank
(crowdfunding platforms)
Digital bank
(100% mobile bank)
+43.5% vs 2016
- Increase operational efficiency: major IT programs
underway (€1bn investment by 2020) aimed at transformation, cost base decrease, quality improvment
- Synergies with La Poste Network
2016 2017 22 2014 22 2013 2015 23 25 23
Cost of risk of credit activities, in bps
Performance
- Conservative risk management
- Stringent controls in place
53.4
64.7
4.0 2014 6.5 Home loans 5.0 4.9 14.4 Corporate and local public sector loans
75.9
2015
69.1
54.1 4.5 9.7 20.7 Consumer loans 58.5 2016 2017
85.0
55.9
- Loans (outstanding, in €bn)
- Asset Management (outstanding, in €bn)
218 2016 158 2017 190 2015 183 2014
PAGE 23
External growth to gain expertise
Digital Major actor of digital trust
Step up revenue generation
- Develop online sales accross all of La Poste’s digital channels,
develop customer knowledge to enhance services and sales, create new digital services (Digiposte)
- Return to profitability: phasing-out of activities
reaching their end-of-cycle
- Strong focus on cost control
Eukles (100%) Localéo (100%) Ametix (70%)
Drive the transformation of the Group
Transformation of La Poste’s model in
- rder to offer a multi-channel user
experience Become a trusted third party Significant increase in the user base and in the frequency of use of Digiposte
Performance
- Become an important player for platforms managing digital and
physical B2B and B2C services
- Support the transformation of the market and the
transformation of customer relation, operate data management services (CRM base, web hosting) Development by Docapost of its priority markets (health, public sector) Acceleration of the Customer Knowledge project Continuation of Mediapost Communication’s strategy to strengthen its data assets
PAGE 24
CONQUERING THE FUTURE
Funding and liquidity
« La Banque Postale at home » call center agent
Several sources of funding
€6.3bn gross debt at YE 2017
Smooth redemption profile Key indicators
Long average maturity and low cost of debt
€m 2023 2018 2021 2025 2043 473 500 1,000 1,000 750 800 1,000 2019 2024
- Outstanding bond issues: €5.5bn at YE2017
- Foreign currency hedge: 100% (using
currency swap)
- Average maturity: 6.6 years
- Cost of debt1: 2.59%
- % fixed-rate: 87%
Strong ratings A+ / F1 / Stable
A+ and stable outlook since Dec-14 “The stable outlook on la Poste reflects our expectation that there is a very high likelihood that it would receive timely and sufficient extraordinary state support if it faced financial stress” S&P (13-Dec-17) “Fitch considers La Poste to be credit-linked with its sponsor and applies a top-down rating approach from the sovereign” Fitch (7-Dec-17)
A / A-1 / Stable
A since Apr-10 Stable outlook since Jul-13 USD hybrid2
A low risk capital structure given currency, maturity & interest profile
PAGE 26
1) As at 31/12/2017. Includes the US hybrid in full. 2) First call date in December 2023.
Financial & investment policy
FX risk management
- Foreign currency-denominated debt issues systematically hedged using currency
swaps
Financial structure
- Low gearing
- Predictability and stability of interest expense
- No refinancing wall
Liquidity
- Ongoing commitment to safety buffer of €1.2bn (cash and cash equivalents)
- €2.5bn of cash & other asset items in 2017
- €1.8bn facilities (incl. Syndicated loan and committed facilities), mainly undrawn at
end of March 2018 (~€80m drawn down)
- €3.5bn commercial paper programmes, mainly undrawn at end of March 2018
(~€150m drawn down)
Credit ratings
- Commitment to current ratings
Investment policy
- Investment in interest-bearing accounts, term deposits and ≥ A2/P2 short-term debt
securities
- Credit risk controlled by a system of limits, of which:
- Maximum nominal amount not to exceed by counterparts, based on internal
methodology
- Maximum loss limit (based on a specific CDS analysis)
PAGE 27
CONQUERING THE FUTURE
Rationale and structure for the upcoming € hybrid transaction
Postal stamps printing in South West of France
Further strengthens the capital structure:
Increases financial and strategic flexibility Helps finance the development plan Enables further diversification of La Poste investor base
Supports the group’s ratings:
Equity features underpin 50% equity content eligibility for both S&P and Fitch
Takes advantage of supportive market conditions in a mature market NC consistent with La Poste’s maturity profile
Transaction rationale
PAGE 29
Proposed Hybrid Structure
La Poste €[●] Undated Non-Call [●] Year Deeply Subordinated Fixed Rate Resettable Notes Issuer
- La Poste
Currency / Size
- EUR [●]
Issuer Ratings (S / F)
- A (stable) / A+ (stable)
Expected Issue Ratings (S / F)
- BB (i.e. 2 notches below the stand-alone rating) / NR
Expected Equity Credit (S / F)
- Intermediate (50%) until the First Reset Date with S&P / eligible for 50% equity content with Fitch
Status
- Deeply subordinated, ranking senior only to ordinary shares of the Issuer and to any other class of the Issuer’s
share capital (including preference shares) and pari passu with the outstanding USD hybrid Maturity and First Reset Date
- Perp-NC[●], with call at par during the 3-month time period ending on the First Reset Date
Subsequent Call Dates
- Any Interest Payment Date thereafter
Interest
- Fixed rate payable annually until the First Reset Date
- Thereafter, reset every 5 years at the then prevailing 5yr EUR swap rate plus the initial credit spread plus
relevant step-up(s), payable annually Step-ups
- 25bps on [●] (Second Reset Date, 5 years after the First Reset Date)
- Additional 75bps on [●] (20 years after the First Reset Date)
Optional Deferral
- At the Issuer’s sole discretion on any Interest Payment Date (cumulative and compounding)
- Junior and parity pusher on deferred interest, subject to customary carve-outs
Special Redemption Events
- Accounting Event, Capital Event, Tax Deductibility Event at 101% until 3 months prior to the First Reset Date,
at par thereafter
- Withholding Tax Event, Gross-Up Event, Substantial Repurchase Event (75%) at par
Replacement Provision
- Intention-based (non-binding) and subject to customary carve-outs
Governing Law
- French law
Listing
- Euronext Paris
Denominations
- EUR100k + 100k
Structuring Advisors
- Barclays and Crédit Agricole CIB
Joint Bookrunners
- Barclays, Crédit Agricole CIB, HSBC and Natixis
Use of Proceeds
- General corporate purposes
Target Market
- Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients
- nly (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available
to retail in EEA.
All as more fully defined in the preliminary terms and conditions of the securities. Capitalised terms used in this summary shall have the meaning ascribed to them in the terms and conditions of the securities PAGE 30
Strong Pusher Mechanism And Credit Profile
Strong and stable dividend track record
- La Poste has the option to defer hybrid interest payments on any
Interest Payment Date
- Deferred interest will accrue on a cumulative and compounding basis
- Any arrears of interest shall become due and payable upon a
Mandatory Payment Event, including (subject to customary exceptions):
- A dividend or any other distribution or payment is declared in
respect of any Junior Securities or any Parity Securities (including discretionary payments in relation to the outstanding USD hybrid)
- La Poste or any subsidiary has repurchased, redeemed or
- therwise acquired any Junior Securities or any Parity Securities
Track record of dividend payments
€m
La Poste has also paid all coupons on its outstanding USD hybrid since issuance in December 2016
Strong support from the French government and strong credit profile
- Capital increase of €2,700m over the 2011-2013 period from
the State and CDC demonstrating ongoing support to La Poste given its unique status
- French postal law(1): (i) requires La Poste to be fully owned by
public-sector entities, with the French state as the mandatory majority shareholder; and (ii) affirms La Poste’s status as a national public service
- Further considerations include: (i) La Poste being one of
France’s largest employers with 218,735 employees in France(2); and (ii) La Banque Postale (fully owned by La Poste) being the only French bank to be entrusted with a public service mission Shareholder Structure La Poste’s Ratings
Issuer Credit Rating: A (stable) Issuer Default Rating: A+ (stable) PAGE 31
Source : Company filings, Rating Agencies’ Reports. 1) Act 2010-123 of 9 February 2010, Article 1 2) in FTE on average
The investment case – at a glance
100% State-owned Stable shareholding structure (by law) Strong issuer rating (A/A+ ,S&P/F) Strong brand name recognition
Opportunity to invest in one of the major services Group in France… …with strong credit quality, low debt and conservative risk profile
€24.1bn revenues (24.4% abroad) Multi-business economic model (Services-Mail-Parcels, GeoPost, La Banque Postale, Digital services) Low Net debt / Equity One of the largest real estate portfolios after the State (~€3.7bn)
Opportunity to invest in a rare issuer in the EUR market
Inaugural public corporate hybrid
PAGE 32
CONQUERING THE FUTURE
Appendices
Pickup lockers at Le Groupe La Poste headquarters
All as more fully defined in the preliminary terms and conditions of the securities. Capitalised terms used in this summary shall have the meaning ascribed to them in the terms and conditions of the securities
Structural Comparison
PAGE 34
Source : Relevant transactions prospectus 1) Including a carve out for mandatory dividends paid by the Issuer in order to maintain its status as a société d'investissement immobilier cotée (SIIC) pursuant to the relevant law in France 2) The Subordinated Guarantee will be governed by English law apart from the subordination provisions which will be governed by Dutch law Issuer La Poste Unibail-Rodamco SE Engie (green) TenneT Holding B.V. Issue Date [●] 16 April 2018 16 January 2018 12 April 2017 Currency / Size EUR [●]m EUR 1,250m / EUR 750m EUR1,000m EUR1,000m Senior Unsecured Ratings (M/S/F)
- / A (stable) / A+ (stable)
A2 (stable) / A (stable) A2 (stable) / A- (negative) / A (stable) A3 (stable) / A- (stable) / - [Expected] Issue Ratings (M/S/F)
- / BB / -
Baa1 / BBB+ / - Baa1 / BBB / BBB+ Baa3 / BB+ / - Maturity Perp-NC[●] (3 month par call included) Perp-NC5.5 / Perp-NC8 (3 month par call included) Perp-NC5.25 (3 month par call included) Perp-NC7.1 (3 month par call included) Subsequent Calls Every Interest Payment Date thereafter Every Interest Payment Date thereafter Every Interest Payment Date thereafter Every Interest Payment Date thereafter Initial Coupon [●]% 2.125% / 2.875% 1.375% 2.995% First Step-Up Date / Margin 25 bps in year [●] (Second Reset Date, 5 years after the First Reset Date) 25 bps in year 10.5 / 13 25 bps in year 10.25 25 bps in year 12.1 Second Step-Up Date / Margin Further 75 bps in year [●] (20 years after the First Reset Date) Further 75 bps in year 25.5 / 28 Further 75 bps in year 25.25 Further 75 bps in year 27.1 Replacement Language Intention based, with customary carve-outs Intention based, with customary carve-outs Intention based, with customary carve-outs Intention based, with customary carve-outs Optional Deferral Cumulative and compounding at the Issuer’s option, subject to compulsory repayment upon payment of dividends and certain other payments Cumulative and compounding at the Issuer’s option, subject to compulsory repayment upon payment of dividends(1) and certain other payments Cumulative and compounding at the Issuer’s option, subject to compulsory repayment upon payment of dividends and certain other payments Cumulative and compounding at the Issuer’s option, subject to compulsory repayment upon payment of dividends and certain other payments Early Redemption Gross-Up Event, Withholding Tax Event, Substantial Repurchase Event (75%) at par Accounting Event, Capital Event, Tax Deductibility Event at 101% until 90 days prior to the First Reset Date, at par thereafter Issuer/Guarantor Gross-up Event, Withholding Tax Event, Minimal Outstanding Amount (75%) at par Accounting Event, Rating Agency Event, Tax Deduction Event, Acquisition Event at 101% until 90 days prior to the First Reset Date, at par thereafter Gross-up Event, Withholding Tax Event, Repurchase Event (80%) at par Accounting Event, Capital Event, Tax Deductibility Event at 101% prior to First Reset Date, at par thereafter Withholding Tax Event, Clean-up Call (80)%, Change of Control at par Accounting Event, Rating Event, Income Tax Deduction Event at 101% prior to First Reset Date, at par thereafter Change of Control N/A N/A N/A 500bps step-up and par call Ranking of the Securities Deeply subordinated, senior to all classes
- f shares of the Issuer and pari passu with
the outstanding USD hybrid Deeply subordinated, senior to all classes
- f shares of the Issuer
Subordinated guarantee, senior to all classes of shares of the Guarantor Deeply subordinated, senior to all classes
- f shares of the Issuer and pari passu with
the hybrids issued in 2013 and 2014 Deeply subordinated, senior to all classes
- f shares of the Issuer
Listing / Gov. Law Paris / French law Paris / French Law(2) Paris / French Law Amsterdam / Dutch Law Denominations EUR100k + 100k EUR100k + 100k EUR100k + 100k EUR100k + 1k
La Poste, a player committed to changes in society
3 major societal issues: Goals for 2020 Progress as at YE2017
Social and territorial cohesion
Regional planning: increase postal coverage methods Responsible purchasing: increase purchasing from the SSE Response to major societal challenges
- 97.1% of the population at less than 5km or 20
minutes by car from a La Poste retail outlet
- 9 different forms of postal coverage
- More than €26m in purchase from disabled and
sheltered sector
- Modernisation of public action: written driving
licence test
Responsible and ethical digital services
Commitment to fostering use of Digital services that is at once accessible, reliable, secure, environmentally friendly and useful to citizens
- Ongoing Green IT implementation (data
centers …)
- « Banking inclusion through digital » plan
- Data charter and appointment of a Chief
Data Officer for the entire Group
Environmental transitions
Reduce greenhouse gas emissions from
- perations by 20% compared to 2013
Own one of the very first global fleet of electric vehicles Serve France’s 15 major cities using systems with very low levels of greenhouse gas emissions New services for a low-carbon economy
- 14% drop since 2013
- 7,197 electric light commercial vehicle owned,
14% of its fleet of light vehicles
- 12 cities mostly served by low-emissions
systems
- Bemobi and Action Habitat revenue: €3.6m
and Recy’go revenue: €14.8m
PAGE 35 Highlight Asset management
LBPAM AUM fully SRI managed by 2020 (vs 50% in 2017)
Improvement of all non-financial ratings in 2017
Rating agency Group ranking Rating and comments
- verall rank in transport
& logistics sector: #1/38
in transport & logistics sector
Outperforms
the industry activity group1 performance
Gold level
(as a supplier)
- 72 / 100 Overall score (+13 vs. 2015)
- C+ Prime Overall score (vs. C in 2014)
- La Banque Postale #1 French and #2 international bank
- B for CDP Climate change
- B for CDP Suppliers (vs. C in 2015)
- Groupe La Poste : 73 Overall score (+3 vs. 2016)
rated Gold in 2017
- Geopost 62 Overall score (+4 vs.2016)
rated Gold in 2017
Investors BtoB & Consumers
#1
July 2017 Sept 2017 Nov 2017
- 74 Overall ESG score
March 2018
Leader
- verall rank in
transportation: #4/129
#1
Oct 2017
1) Activity group « Ground transportation – Trucking Transportation » rated « C »
PAGE 36
- Permanent employees
(Group France, individuals, end of period)
- Full-time employees
(Group France, individuals, end of period)
- Turnover rate2
Group Human Resources policy and objectives
92% 88%
- Diversity and equal opportunity
49.5% of women in La Poste managers
- Training
84% of La Poste employees trained in 2017
- By BU
- By age
Individuals, Group France
4.9%
Headcount HR key indicators
- /w ~34,4841
- utside France
253,219 employees1
PAGE 37
1) Number of employees in full-time equivalents on average, Group 2) Calculated as (Average In/Out employees / total employees at year-end)
CONQUERING THE FUTURE
Contact details
A postwoman-counter clerk in her delivery round
Financial information available
- n http://legroupe.laposte.fr/en/Finance
Yasmina Galle Head of Investor Relations and Financial Communication yasmina.galle@laposte.fr +33 (0)1 55 44 17 02 Eric Bosdonnat Head of Financial Operations and Treasury eric.bosdonnat@laposte.fr +33 (0)1 55 44 17 05
PAGE 39
Le Groupe La Poste Group Finance Department 9, rue du Colonel Pierre Avia 75015 Paris Tél : +33 (0)1 55 44 00 00 www.legroupe.laposte.fr
Photo credits: Eric Huynh, Christophe Pelletier, Vincent Prieur, Julien Apruzzese, Drone CORP, branche GeoPost, branche Services-Courrier-Colis, Guillaume Murat, Groupe La Poste, Jérome Abou