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Le Groupe La Poste Debt Investor Presentation November 2012 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


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SLIDE 1

Le Groupe La Poste Debt Investor Presentation

November 2012

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SLIDE 2

DEBT INVESTORS ROADSHOW PRESENTATION

Disclaimer

PAGE 2

  • 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

  • bjectives, 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, 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.

  • 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.411-2 and D.411-1 to D.411-3 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
  • f 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.

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DEBT INVESTORS ROADSHOW PRESENTATION

Agenda

PAGE 3

Group presentation Business review Main financials Key credit highlights

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SLIDE 4

Group Presentation

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SLIDE 5

DEBT INVESTORS ROADSHOW PRESENTATION

Key highlights

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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 2011-2013

A key role for the French State

  • Four public service missions (universal postal service, regional planning, banking accessibility, press

delivery) Rated AA by Fitch (negative perspective) and A by Standard & Poor’s on the back of a GRE status (positive perspective) A major services group with revenues of €21.3bn in 2011 and three core activities (Mail, Parcels- Express, Banking activities) La Poste is : 1st distribution network in France, with over 17 000 public outlets 2nd employer in France after the French State

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SLIDE 6

DEBT INVESTORS ROADSHOW PRESENTATION PAGE 6

A historical relationship with the French State, continuously reaffirmed

1990 / 1991 2010 2011

Status Involvement of French State in La Poste business

New Postal Act, reaffirmation

  • f the 4 public

service missions in law Entering the local authorities financing market Participation in the French Recovery Plan 2009 Change of status to become a “Société Anonyme” Signing of a new regional planning contract 2011- 2013, amendment to the public service contract Capital increase agreed on by the State and Caisse des Dépôts (CDC) 1999 Transposition of the first Postal Directive Banking accessibility mission written in law (LME law) 2012 2005 / 2006 Creation of La Banque Postale Postal Regulation Law Creation of ARCEP (regulator) Previously a State Administration, La Poste becomes a public industrial and commercial establishment (EPIC)

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DEBT INVESTORS ROADSHOW PRESENTATION

Strong ties with the French State

PAGE 7

*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

100% 22.9%* 77.1%*

La Poste is a limited company Article 1 of Act 2010-123 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 Shareholders Governance

La Poste Board of Directors 21 members

8 State representatives 1 user representative 7 employee representatives 1 regional authority representative 3 CDC representatives Jean-Paul Bailly, Chairman & CEO, nominated by decree

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DEBT INVESTORS ROADSHOW PRESENTATION

La Poste is entrusted with 4 public service missions

PAGE 8

Regional planning and development

  • > 17 000 contact points by law
  • Presence in priority areas (rural, underprivileged,

mountain areas) 3

Banking accessibility

Via Livret A savings account. 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 2

Universal postal service

Mail collection and delivery of specified quality at all points in the territory at affordable prices for all users – 6 days a week 1

Press transport and delivery

Distribution of press and periodicals 6 days a week, all over the territory at affordable tariffs (regulated) 4

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

Requested by the European Directive Additional mission entrusted to La Poste by the French State 1 #

* Source : La Poste is a “company that inspires trust” for 73% of French people (IPSOS/La Poste reputation barometer - 2011), and is actively cited as the company that French people trust the most (Top Com TNS Sofres - 2009). Also considered as the most useful corporate in France (95%), ahead of EDF (93%) and SNCF (92%) (Le Monde Viavoice survey – April 2012)

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SLIDE 9

DEBT INVESTORS ROADSHOW PRESENTATION

Benchmark with peers

11/9/2012 PAGE 9

A Universal Service with requirements above peers and above the Directive The only postal operator with four public service missions

European Directive State initiative Universal postal service

includes

Press Banking Regional planning

6 days / week

Regulated tariffs

  

6 days / week

  

5 days / week

Regulated tariffs until April 2010

 

6 days / week

   

5 days / week

  

  • 1. Single letters and printed material <2kg
  • 2. Parcels < 10kg
  • 1. Letter mail <2kg
  • 2. Parcels < 20kg
  • 1. Letter mail <2kg
  • 2. Addressed parcels < 20kg
  • 1. Letter mail <2kg
  • 2. Parcels < 20kg
  • 1. Letter mail <2kg
  • 2. Parcels < 10kg

Banking accessibility

Collection of postal savings for the Italian CDC

Source: IPC (International Postal Corporation) – Regulatory Database 2012

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SLIDE 10

DEBT INVESTORS ROADSHOW PRESENTATION

Turnover 2011 consolidated operating revenue : €21.3bn

Le Groupe La Poste : a major services Group with a unique business diversification profile

PAGE 10

La Poste Retail Brand : 17,064 public outlets in France completed by a multi-channel strategy

Sofipost

24% 25%

Organization

Mail market

Market

European Parcels & Express market French retail banking market

51%

Mail Parcels-Express Banking activities

parcels express

Parent company Retail banking Insurance Asset management Parent company

* JV co-owned by La Poste (51%) and SFR (49%)

*

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DEBT INVESTORS ROADSHOW PRESENTATION

The Group has leading positions on its three core markets

Banking Activities

Market positioning (as at 30 June 2012*) Group’s competitive strengths

Mail Parcels - Express

Key competitors

  • Anchored in the country – historical presence
  • Very dense network (>17,000 public outlets)
  • Expansion on international mail markets

#1 France

No key competitor1

  • Strong positioning in France and Europe
  • Extended development abroad (75% of GeoPost revenues in H1 2012)
  • Strong innovation (Predict)
  • Densest road network in Europe

#1 France #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)

1. 28 operators licensed by Arcep, including Adrexo, Althus, Ciblex, Press’tissimo, etc., * data 2011 for Parcels-Express

PAGE 11

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DEBT INVESTORS ROADSHOW PRESENTATION

Italy Swiss

€21,693m €6,987m

Revenue 2011

Benchmark with peers – European postal operators

Revenue split 2011

Source : internal, based on operators presentations

26% 22% 52% 51% 7% 16% 24% 22% 23% 52% 3% 75% 16% 8% 0%

mail express parcels financial services insurance services retail / post offices

NA 16.4% 68.3% 12.7%

International revenue 2011

UK

€11,044m

Germany

€52,829m France €21,341m 16%

logistics Postbus

  • ther

50% 12% 29% 8% 1%

PAGE 12 mail / parcels / international logistics, incl. parcels & express

3rd

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SLIDE 13

DEBT INVESTORS ROADSHOW PRESENTATION

Benchmark with peers – French retail banks

PAGE 13

5,231m€

NBI 2011*

Source : banking operators. * Retail NBI

12.7%

Core Tier 1 2011

>17 000 public outlets

Network data 2010 6th 1st 1st

8,165m€ 6,968m€ 13,420m€ 3,822m€ 6,329m€ 6,803m€ 9.1% 9.0% 9.6% 9.0% 2,250 3,250 ~7,000 ~1,900 ~3,300 ~4,200 6,214m€ 11.0% ~2,600 <50% Loans / Deposits

Liquidity

117% NA 121% 136% 129% 115%

1st

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SLIDE 14

Business review

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DEBT INVESTORS ROADSHOW PRESENTATION

Addressed mail

Market considerations

Business communications Marketing communications Local services Private communications Cross-border mail

Volumes : 25bn objects handled in 2011,

  • f which ~15bn addressed

Businesses

59% 16% 10% 9% 6% €11.6bn

2011 revenue

Mail

  • Digital revolution
  • Complete opening of the market
  • Environmental awareness

Organisation MAIL Parent company Sofipost

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)

Traffic paid, not incl. elections (rolling basis) €10.6bn* €1.0bn* % change

17,269 16,399 15,822 15,378 14,811

Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q2 2012

  • 5,3%
  • 2,8%
  • 3,5%
  • 5,0%
  • 2,6%

PAGE 15

* Consolidated data

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DEBT INVESTORS ROADSHOW PRESENTATION

Mail - Market environment and key strategic steps

PAGE 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…)

  • Continuing innovation and quality on customer-related products and services

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

% 2011 mail revenues Business comm. Marketing Convenience services

  • Grow on new markets especially on e-logistics activities (acquisition of Orium and Mixcommerce

in 2012), on eco-solutions (paper recycling logistics, eco-mobility)

Private mail

  • Grow on the cross-border market (via the newly established Asendia)

Cross- border

59% 16% 10% 9% 6% Local services

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DEBT INVESTORS ROADSHOW PRESENTATION

Focus on Asendia

PAGE 17

Asendia : organization & figures Geographical presence

Become the leader in B2C solutions for international mail

Ambition

Swiss Post (Swiss Post International - SPI) Global presence on 3 continents, in over 25 locations in 15 countries

Market characteristics

>1,000 employees Revenue > €400m

Brings together the expertise and networks of

La Poste (La Poste Global Mail - LPGM)

Excluding the import and export business in France and Switzerland. The universal postal services in France and Switzerland are not included in the JV.

  • International mail = market with revenues > €10bn (2011)
  • Mature market with strong growth in direct marketing,

catalogues and small goods Strong geographic complementarity of SPI and LPGM

  • Sharing the best

solutions in transport & delivery

  • Critical size
  • No significant additional

investment

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DEBT INVESTORS ROADSHOW PRESENTATION

  • Growing e-commerce :
  • Market concentration
  • Convergence of toC and toB markets

International presence Revenue split Market considerations

€5.2bn in 2011

Parcels-Express

Subsidiaries JV International agreements

More than 40 countries in the world

Organisation and market positions Parcels- Express

E-commerce evolution in France, in €bn***

Focus on toC* Mainly France Focus on toB* Mainly Europe 65% in the corporate segment (B2C) in France

Main activity Market share**

17.3% in the domestic road express market

* ToC: to Consumers / ToB: to Business - ** Source : 2011 Reference Document - *** Estimate ICE-Fevad

PAGE 18

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DEBT INVESTORS ROADSHOW PRESENTATION

Parcels-Express - Market environment and key strategic steps

PAGE 19

Strengthen its leadership on road express and make the most of B2B and B2C convergence, via :

  • 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

GeoPost ColiPoste

  • 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) 71% 29%

% 2011 P/E revenues Strategy

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DEBT INVESTORS ROADSHOW PRESENTATION

Banking activities

Life insurance

  • Growth, demography
  • Interest rates
  • Financial markets
  • Regulation

50.8%

H1 2012 loan / deposit ratio

Not including Livret A, LDD & LEP centralized at CDC

Market drivers La Banque Postale : an atypical balance sheet – 2011 data Businesses LBP market share

Sight deposits

NBI of LBP (2011)

Source : LBP 2011, retail banking benchmark

157 45 68 41 20 10 29 Actif Passif

€186bn €186bn

  • .w. €57bn

Livret A

Other,

equity, debt

Deposits Other Centralization CDC Loans Short term portfolio Long term portfolio

Retail Bank in France

by NBI

9.1% €5.2bn 6th

PAGE 20

LBP Retail banking Insurance Asset management NBI and market share

Since 2006

Property loans 2006 Consumer loans 2010 Corporate financing 2011 Local authorities 2012 Personal risk 1998 Property insurance 2011 Health insurance 2011 ASSETS LIABILITIES

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DEBT INVESTORS ROADSHOW PRESENTATION

Banking activities - Market environment and key strategic steps

PAGE 21

Strategy Retail banking Asset mgmt

Benefit from the extension and completion of the range :

  • Property loans and consumer loans (launched in April 2010) completed by corporate

financing (September 2011)

  • Local authorities financing : short-term offers launched in June 2012, mid and long-term
  • ffers by the end of 2012
  • Continued clients’ equipment (cards, packs, …)
  • Multi-channel offers
  • A comprehensive range of products into the equity, bond and property market
  • Extend the private banking business aimed at high net-worth individuals : exclusive

negotiations under way with a view to acquiring Banque Privée Européenne

% 2011 NBI Insurances

*includes commissions on life insurance

Comprehensive insurance range :

  • Personal risk
  • Newly launched products: property and casualty, health insurance, school insurance policies,

multi-risk insurance for associations

Retail banking Asset mgmt % 2011 NBI Insurance

96% 2% 2%

*

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DEBT INVESTORS ROADSHOW PRESENTATION

June 2012 Launch of short term

  • ffers to local authorities

Financing of French local authorities

PAGE 22

July 2012 Launch of medium and long term loans Initial €2bn envelope increased to €4bn November 2012

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SLIDE 23

DEBT INVESTORS ROADSHOW PRESENTATION PAGE 23

  • 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

France’s densest physical network Key H1 2012 figures

La Poste Retail Brand Presentation of La Poste’s network

18%

  • f Mail revenue

95%

  • f La Poste Mobile sales

28%

  • f ColiPoste revenue

100%

  • f net collection for

individuals 100%

  • f property loans

69%

  • f consumer loans

La Poste Retail Brand accounted for :

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DEBT INVESTORS ROADSHOW PRESENTATION PAGE 24

La Poste Retail Brand

Service quality : continuous progression

Visits with access to service < 5 minutes* Average speed

  • f access to

service, in minutes**

77.7% 86.3% 91.7% 3.3 2.5 2.3

La Poste Mobile

 Revenue : €34m Group share (H1 2012)  165,000 sales on the period (H1 2012)  Growth of customer base from April : 552,000 customers (end June)  Whole range now offered in 10,000 post offices JV co-owned by La Poste (51%) and SFR (49%)

Notes : (*) short operations, e.g. registered letter (1,000 post offices) (**) short operations at counter (1,000 post offices )

Development despite the impact of the newly-arrived Free on the market

H1 2010 H1 2011 H1 2012 H1 2010 H1 2011 H1 2012

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DEBT INVESTORS ROADSHOW PRESENTATION

La Poste in a digital world

Unique footprint in e-commerce Dynamic

  • nline

presence

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

as well as mobile apps, websites, social networks

  • Significant audience* of 12m unique visitors
  • Online sales of products and services

Group Digital Ambition

  • Further

value and draw full benefit of La Poste’s

  • nline

presence

  • Increase
  • nline sales

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

Appointment in Sept 2012

  • f a Senior

VP in charge

  • f Digital
  • ffers

reporting directly to CEO

PAGE 25 Notes : (*) cumulative audience, November 2011

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DEBT INVESTORS ROADSHOW PRESENTATION

  • 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

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

  • ffers since 1 July 2012

 Electric vehicles: Acquisition of 10,000 vehicles by 2015. 1,600 in operation end of 2012

  • Strong increase of buildings accessible to people with reduced mobility

58%

2010 2011

48,5%

51%

  • f 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

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SLIDE 27

Main financials

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SLIDE 28

DEBT INVESTORS ROADSHOW PRESENTATION

Revenue EBIT Net profit Group share

H1 2012 FY 2011

+0.9% €10.9 bn +26%1 €632m +16%2 €437m €21.3bn €670m €478m

Change on H1 2011 Published data

Key 2011 / H1 2012 consolidated figures

Published data

PAGE 28 (1) Stable excluding impact linked to Greek debt – provision for Greek debt of €30m in H1 2012, €241m in FY 2011 and €158m€ in H1 2011 (2) –4,6% excluding impact linked to Greek debt

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DEBT INVESTORS ROADSHOW PRESENTATION

  • 264

48 99 5 Revenue H1 2012 Volume* Mix/price Services & elections Perim & change Revenue H1 2012

Mail : a stable margin despite declining volumes

8.2% 8.1%

REX / CA 489 470

EBIT - Mail

H1 2011 H1 2012

Benchmark

  • 4.6% domestic
  • 3.2%

~-8% Addressed volumes +1.0%

  • Incl. parcels (24% CA), +12%

Sources : postal operators (data 2011 for Gruppo Poste Italiane)

EBIT/Rev

  • 3.4%
  • 5.4%

PAGE 29

Mail Division Revenue

Evolution of Mail revenue H1 2011 – H1 2012

5,827 5,939

  • 5.8%
  • .w.

development

  • f Sofipost &

election impact

  • 1.9%

2011

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DEBT INVESTORS ROADSHOW PRESENTATION

Evolution of Parcels-Express revenue H1 2011/2012

PAGE 30

Parcels-Express : strong growth in revenue - stable EBIT

EBIT - Parcels-Express

8.2% 7.8%

REX / CA

206 210

H1 2011 H1 2012

Competitors Express Revenue +1.5% +2.8% +10.3%

  • +3.5%

+1.2% Volumes

Sources: operators

EBIT/Rev

Perim & change 76 Price &

  • ther
  • 5

Volume 120 Revenue H1 2011

2,505

Revenue H1 2012

2,695

+ 7.6% +4.8% Organic volume effect

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DEBT INVESTORS ROADSHOW PRESENTATION PAGE 31

Property & consumer loans outstanding (€bn) Number of active clients (millions)

+3%

+16% Consumer €2bn Property €43bn +2% 38 44 45 2010 2011 H1 2012 10.0 10.4 2010 2011

Banking activities

Commercial Activity

LBP Market share*

  • 9.1% on sight deposits (all customers)
  • 25.9% on Livret A
  • 5.2% on property loans (outstandings)

LBP Market share*

  • 1.5% on consumer loans (outstandings)
  • 3rd retail bank by number of customers

LBP Positioning Outstanding customer deposits (€bn)

284 290 293 2010 2011 H1 2012 +2% +1% *Based on LBP sources

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DEBT INVESTORS ROADSHOW PRESENTATION

27

  • 25
  • 6

H1 2011 Interests Commissions Other H1 2012

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%

GOP

Cost of risk

EBIT

  • .w. €30m

linked to Greek debt

Operating ratio

€158m linked to Greek debt 429 438 348 245 82 193 Marginal residual exposition to Greece : €17m as at 30 June 2012 Competition* NBI Retail banking REX

  • 0.3%

+0.8%

  • 3.6%
  • 0.6%

+0.2%

  • 6.8%

* : presentations & press releases

2,668 2,671

H1 2011 H1 2012

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SLIDE 33

DIRECTION FINANCIERE DIRECTION DE LA COMMUNICATION FINANCIERE

3,441 4,544

As at 30/06/2012 In €m

Net debt

31.2 % 26.8 %

CFO* / Net debt

7,194 6,783

Equity Group share

0.48 0.67

Net debt / Equity

Financial strength

Decrease in net debt

  • f -€1,103m after

payment of the 2nd tranche of the capital increase in April (€1.050bn)

H1 2012 FY 2011

Equity up €411m after allocation of the period’s retained earnings and distribution of dividends

Note : (*) Cash flows from operations (CFO) = EBITDA + dividends received - taxes paid - financial charges paid. Ratio calculated on a rolling twelve-month basis PAGE 33

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DEBT INVESTORS ROADSHOW PRESENTATION

A strong balance sheet

PAGE 34

A sustainable and continuously improving leverage combined with a low cost of debt

The French State has approved a capital increase of €2.7bn:

  • €1.2bn from the State
  • €1.5bn from Caisse Des Dépôts et Consignations

The cash injection related to this capital increase is divided as follows:

  • A first tranche of €1.05bn was paid in April 2011
  • f 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 2013

Focus on the €2.7bn capital increase

  • An average cost of debt of 3.3% for an average

maturity of 6.5 years

  • A fixed rate ratio of 80%

Key H1 2012 figures Net debt evolution (€m) Equity evolution (€m)

4,465 6,783 7,194 2010 2011 H1 2012 4,804 4,544 3,441 1.1x 0.7x 0.5x

  • 0.
5x 1. 0x 1. 5x 2. 0x 2. 5x 3. 0x 3. 5x 4. 0x 1, 000 2, 000 3, 000 4, 000 5, 000 6, 000

2010 2011 H1 2012 Net Debt Net Debt/ Equity

slide-35
SLIDE 35

DEBT INVESTORS ROADSHOW PRESENTATION

The Ambition 2015 strategic plan

PAGE 35

Key strategic goals 2010-2015

  • 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

  • Maintain special focus on investment in strategic sites, continuous modernisation, IT

improvements, and electric vehicles

  • The multi-channel strategy will be further deployed in all business lines
  • The strategy will be rolled out while focusing on societal and environmental responsibility

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

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SLIDE 36

DEBT INVESTORS ROADSHOW PRESENTATION

Standard & Poor’s

PAGE 36

A / A-1 / Positive

Solid credit ratings

Outlook changed from stable to positive on 27/07/2012

  • 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

Fitch 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

slide-37
SLIDE 37

Key Credit Strengths

Roadshow Presentation

10 octobre 2012

slide-38
SLIDE 38

DEBT INVESTORS ROADSHOW PRESENTATION

Key Credit Strengths Overview

PAGE 38

La Poste, a unique company with strong credit pillars

A prudent financial profile and a strong balance sheet

3

Leading positions on its three core markets

1

A proven capacity to adapt its business model and a growth strategy well on track

2

A key role for the French State

4

slide-39
SLIDE 39

DEBT INVESTORS ROADSHOW PRESENTATION

Leading positions on its three core markets

PAGE 39

1 2 3 4

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

slide-40
SLIDE 40

DEBT INVESTORS ROADSHOW PRESENTATION

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 Major brands

High-value assets

PAGE 40

The Group’s leading strategy is backed by high-value assets

Strong Brands

A major real estate national portfolio

  • 4.5m sqm owned
  • €4 billion in the 2011 Group accounts

High Value Real Estate

1 2 3 4

slide-41
SLIDE 41

DEBT INVESTORS ROADSHOW PRESENTATION PAGE 41

  • 1. Industrial modernization

Optimized industrial tool and automation of processes allowing cost reductions

2003 2011

Unoptimised industrial and logistical structure: 97 processing sites in 2003 High levels of manual intervention CQC¹ in 2006: new generation platforms 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) ColiPoste logistics : no flash, no bulk Basic IT services New hubs and optimised

  • perations (GeoPost)

Densest road network (GeoPost) Industrial modernization : automation of parcels processing (97% of ColiPoste sorting) and bulk, renewal of half the platforms (ColiPoste) Old fashioned outlet design Low-quality IT systems Modernisation of outlets : customer-oriented post

  • ffices

Computerised back-offices 14,291 Automated Machines : 5,291 franking and stamp dispensers and 9,000 cash dispensers, change machines and cheque deposit boxes Multi-channel access to products and services 6,350 cash dispensers (vs. 5 901 in 2010)

Retail Brand Banking Parcels Express Mail

Poor IT systems

Note 1. Mail Quality Project

1 2 3 4

Proven capacity to adapt the business model

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SLIDE 42

DEBT INVESTORS ROADSHOW PRESENTATION

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)

PAGE 42

  • 2. An improved quality of service

A service quality strengthening La Poste’s brand reputation

2003 2011

Low next-day mail delivery: 65.7% in 2003, improved to 81.2% in 2006 Record 87.2% quality of service in 2011 81.5% D+2 parcel delivery in 2003 92.9% D+2 (Coliposte) 95% D+1 (DPD) Only 51% customer satisfaction on waiting time Increased service quality : 75% satisfaction on waiting time (only 2,25 minutes for short

  • perations in the first 1000
  • utlets)

1,060 AFNOR certified post offices (certification

  • f service)

Retail Brand Banking Parcels Express Mail

Unidentified banking spaces in post offices Quality of service with room for improvement

1 2 3 4

Proven capacity to adapt the business model

slide-43
SLIDE 43

DEBT INVESTORS ROADSHOW PRESENTATION

Retail Brand Banking Parcels Express Mail

PAGE 43

  • 3. An enhanced offer and increased international presence

Since 2003, La Poste has successfully demonstrated its ability to innovate and meet clients’ demands with simple, transparent and accessible products

2003 2011

Limited Internet penetration Limited International presence 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 GeoPost : International presence in 15 countries ColiPoste : limited choice in point of delivery External growth and extended international presence : more than 40 countries Customer-oriented solutions: tracking, choice

  • f 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) Services Financiers de La Poste Limited range of products, constrained by law, to postal bank accounts, property and loans with prior savings Products and services only for individuals A complete range of for individuals : retail banking, insurance and asset management A widened client base : legal entities and local authorities (2012) Mail and Parcels activities Mobile phone services:

  • Prepaid Cards
  • Launch of La Poste

Mobile in 2011 Enhanced offer with a new client-oriented outlet concept

1 2 3 4

Proven capacity to adapt the business model

43

slide-44
SLIDE 44

DEBT INVESTORS ROADSHOW PRESENTATION

  • A steady operational margin between 3% and 4% since 2008
  • Revenue : CAGR 2008-2011 of +0.9% per annum
  • Substantial improvement of net debt
  • Strong increase in equity Group share

Net debt Revenue Margin Equity

A prudent financial profile and a strong balance sheet

PAGE 44

1 2 3 4

4,804 4,544 3,441 1.1x 0.7x 0.5x

  • 1.5x

2.0x 2.5x 3.0x 4.0x 2010 2011 H1 2012 Net Debt Net Debt/ Equity 4,465 6,783 7,194 2010 2011 H1 2012 Equity Group share

slide-45
SLIDE 45

DEBT INVESTORS ROADSHOW PRESENTATION

Ample liquidity

PAGE 45

  • Cash and cash equivalents and other asset

items : €3.7bn

  • Total undrawn resources: €2.2bn, of which:
  • €1,075m of commercial papers
  • €1,150m committed, the details of which are in the

table below: The syndicated credit facility of €650m was successfully renegotiated in 2011 * 1 year extension option activated in October 2012

Liquidity sources (June 30th, 2012) Bonds maturity profile (€m)

Successful renegotiated credit facility in 2011. Smooth debt redemption profile with no refinancing wall and a very strong access to liquidity totalling €5.9bn

€m Amount Undrawn Exp Date Syndicated credit facilty 650 650 2017* Bilateral Line 300 300 2013 Bilateral Line 200 200 2013

  • 726

208

  • 744

600 500 800

  • 1,000
  • 1,000

'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

1 2 3 4

slide-46
SLIDE 46

DEBT INVESTORS ROADSHOW PRESENTATION

Strong access to capital markets

PAGE 46

A long dated and successful debt market oriented financing strategy La Poste holds a strong footprint on the bond market

Bonds table

Source: Bloomberg 04/09/2012, *Bonds included in Markit iBoss index Sub-Sovereign classification

Maturity Issue date Amount (€m) Euro Bonds

  • Jul. 2017
  • Jul. 2002

600

  • Jun. 2023*
  • Jun. 2003

1,000

  • Jul. 2019
  • Jul. 2004

800

  • Nov. 2013
  • Nov. 2006

726

  • Nov. 2021*
  • Nov. 2006

1,000

  • Feb. 2018
  • Feb. 2008

500

  • Feb. 2016
  • Feb. 2009

500 GBP Bonds

  • Dec. 2016*
  • Dec. 2000

200 CHF Bonds

  • Jul. 2014
  • Jul. 2007

250

€7,106m

H1 2012 Breakdown of Gross Debt

Bonds La Poste Saving Bonds CP/BT Deposits & guarantees Accrued interests Other borrowings

83% 1% 4% 7% 2% 3%

1 2 3 4

slide-47
SLIDE 47

DEBT INVESTORS ROADSHOW PRESENTATION

A key role for the French State

PAGE 47

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

1 2 3 4

slide-48
SLIDE 48

DEBT INVESTORS ROADSHOW PRESENTATION

Offering Summary

Issuer

La Poste

Rating

AA (neg.) by Fitch and A (pos.) by S&P

Currency

Euro

Maturity

Long dated

Format

Fixed Rate

Listing

Euronext Paris

Denominations

€100k

Use of proceeds

General Corporate Purposes

Roadshow

November 12-13-14

Expected Rating of the Notes

AA (neg.) by Fitch and A (pos.) by S&P

Size

Benchmark

Joint Bookrunners

Crédit Agricole, Deutsche Bank, HSBC

PAGE 48