CONQUERING THE FUTURE Le Groupe La Poste Credit update and - - PowerPoint PPT Presentation

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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


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Le Groupe La Poste Credit update and considerations on upcoming € hybrid transaction April 2018

CONQUERING THE FUTURE

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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

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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

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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

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SLIDE 5 NOM DE LA DIRECTION 5

CONQUERING THE FUTURE

Group

  • verview

A multi-business model

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SLIDE 6

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

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SLIDE 7

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

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SLIDE 8
  • 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 …

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SLIDE 9

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

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SLIDE 10

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
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SLIDE 11

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

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SLIDE 12

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

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SLIDE 13 NOM DE LA DIRECTION 13

CONQUERING THE FUTURE

Financial results FY 2017

Written driving licence test

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SLIDE 14

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

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SLIDE 15

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

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SLIDE 16

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)

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SLIDE 17
  • 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

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SLIDE 18 NOM DE LA DIRECTION 18

CONQUERING THE FUTURE

Strategy

Parcels sorting in a DPD hub

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SLIDE 19

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

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SLIDE 20

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

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SLIDE 21

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)

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SLIDE 22

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

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SLIDE 23

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

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SLIDE 24

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

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SLIDE 25 NOM DE LA DIRECTION 25

CONQUERING THE FUTURE

Funding and liquidity

« La Banque Postale at home » call center agent

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SLIDE 26

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.

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SLIDE 27

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

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SLIDE 28 NOM DE LA DIRECTION 28

CONQUERING THE FUTURE

Rationale and structure for the upcoming € hybrid transaction

Postal stamps printing in South West of France

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SLIDE 29

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

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SLIDE 30

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

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SLIDE 31

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

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SLIDE 32

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

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SLIDE 33 NOM DE LA DIRECTION 33

CONQUERING THE FUTURE

Appendices

Pickup lockers at Le Groupe La Poste headquarters

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SLIDE 34

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

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SLIDE 35

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)

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SLIDE 36

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

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SLIDE 37
  • 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)

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SLIDE 38 NOM DE LA DIRECTION 38

CONQUERING THE FUTURE

Contact details

A postwoman-counter clerk in her delivery round

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SLIDE 39

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

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SLIDE 40

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