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

Investor presentation

May 2015

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• therwise arising in connection with this document.
• Certain statements in this document are forward-looking, including statements concerning La Poste’s plans,
• bjectives, 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.

Disclaimer

PAGE 2

Key credit highlights Group presentation Business review Financial data

Agenda

PAGE 3

• Strong ties with the State
• A major multi-business services Group

page 4 page 6 - 12

• Key figures FY 2014
• Financial credit profile

page 13 - 22 page 24 - 35

pages 6 - 9 pages 10 - 12 pages 23 - 31 pages 32 - 34

Outlook page 35 - 38

Key credit highlights

Le Groupe La Poste’s fundamental strengths

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

PAGE 5

Group presentation

Strong ties with the State

A major multi-business services Group

Involvement of State

2000’s 2010’s

A historical relationship with the French State, continuously reaffirmed

1990’s 2010 2011

Status In law

Entering the local authorities financing market Participation in French plan de relance Capital increase subscribed by State & CDC 2012 2005 Creation of La Banque Postale EPIC 2013 2017 1990 Boosting social home

• wnership

programs

PAGE 7

In business

2006

Public service missions

2007 2008 2009 2014 Public service contract 2013-2017 2015 2016 Société Anonyme* Public service contract 2008-2012

Acts/ Decrees

Postal Act Creation of ARCEP + specific agreements covering each mission Operator

• f Vital

Importance Postal Act 4 missions reaffirmed in law La Poste, designated provider of the Universal Service for 15 years as from 1 January 2011 * Article 1 of Act 2010-123 of 9 February 2010 The share capital shall be held by the State & by other public sector legal entities except for the portion that may be held under employee shareholding arrangements

4 public service missions entrusted to La Poste beyond EU obligations

PAGE 8

4 public service missions governed by law and by specific agreements Missions historically enshrined in French Law

(Law 20 May 2005 supplemented 9 Feb. 2010, transposing EU Directive for universal postal service)

Missions governed by a public service contract

(the latest for the period 2013-2017 signed 1 July 2013)

  

Compatible Compatible Compatible “they only partially offset the net costs

• f the public service tasks”

“It does not exceed the net cost for discharging public service obligation”

EU compatible compensation schemes

Compensation fund provided by the EU Directive



Universal postal service Press transport and delivery Banking accessibility Regional planning and development

No additional agreement Schwartz Agreements 2009-2015, new agreement under way Local postal coverage agreement, the latest for 2014-2016 signed Jan 2014 French Law 2 July 1990 Specific decrees for compensation €170m in 2014* €242m in 2014* €150m in 2014* Compensation fund not activated

Specific agreement Compen- sation

   

*Compensation is provided under different mechanisms (tax exemption, public subsidy…).

Market perception critically close to that of the French State

Credit ratings

PAGE 9

1 2 3 4 5 6 La Poste bond 06/2023 French OAT 04/23 %

Market perception

AA / A-1+ / Negative AA / F1+ / Stable A / A-1 / Stable A+ / F1 / Stable Rating affirmed in October 2014 AA-/F1+/Stable affirmed in September 2014 Lowered by one notch in December 2014 following France’s rating downgrade (PSE methodology)

Group presentation

Strong ties with the State

A major multi-business services Group

A major multi-business services Group with a unique diversification profile

La Poste Network

servicing all business units

GeoPost La Banque Postale Services-Mail-Parcels

Mail and Parcel market, mainly in France European CEP market

Digital Services

Retail banking in France

Mail

* JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS 11 as of 1/1/2014 *

50.2% 21.9% 25.5%

Market % Group revenue Organization /Brands

2.2%

Logistics International Services Retail banking Insurance Asset management Parcels Relational performance Operational efficiency E-services PAGE 11

€22,163m

Revenue 2014

€719m

EBIT 2014 A French key employer 257,891 employees Strong international presence

1 2 3 4 5

Revenue 2014 €8 bn €22 bn €4 bn €12 bn Revenue abroad 17.9% 69% 15% 17% ~0% 39% Multi-business models Specific models Postal-centered models

A multi-business model compared to the great majority of European postal operators

PAGE 12

€28 bn €57 bn

FY 2013-2014

Revenue split in %

50 22 25 2 48 14 9 27 28 72 17 83 82 17 100

Network of retail outlets 17,104

44% partnerships

2,222

30% partnerships

13,000

100% partnerships Network of Post Office Ltd (separated from Group in 2012)

2,550

100% partnerships

mail parcel express/logistics banking/insurance

Sales 2014, revenue split 2013 (2014 not available yet)

* 13,310

0% partnerships

bus

Business review

GeoPost Digital Services Services-Mail-Parcels La Poste Network

1 2 3 4 5

La Banque Postale

#1 addressed mail #1 unaddressed mail

Unique door-to-door everyday services

Business & revenue split

5 1 2 3 4

Market positioning* Key strengths €11.4bn

PAGE 14

Cross-border

Revenue Volumes

• 13bn addressed mail
• 9bn unaddressed mail
• ~270 million parcels
• Ability to address the growing and untapped

local & in-home services market (trust, daily contact with individuals and corporates)

• Optimized state-of-the-art industrial

and logistical network (€3.4bn investment over 2003-2010)

• Expertise in order preparation in 20 e-

logistics platforms

Mail Parcels Logistics Cross-border

#1 BtoC parcels #1 e-logistics #1 press delivery #1 export mail Top 3 Europe

Services-Mail-Parcels

* Source: ARCEP for mail, internal for parcels, market publications (Logistique magazine) for logistics, IPC market audit and internal sources for cross-border

• Digitisation impact on (addressed) mail

volumes:

• 2012: -5.9%
• 2013: -5.5%
• 2014: -5.8%
• Growing e-commerce driving the Parcels

market:

• 2007-2013: +22% (CAGR French e-commerce)
• 2013: 8.8% of online sales in French total

retail sales

Market drivers

Strategy: Strong levers for performance improvement

Develop new services Defend the postal core business

Volume

• A premium communication media, offering best-in class services

(print formats combined with the most advanced digital technologies)

• Simplified range: mail-parcel continuum as of 1 January 2015
• Make the most of expertise in local and in-home delivery
• A 100% connected network of postmen by end 2015
• Counterbalance volume decline with price measures: new 2015-

2018 universal service price-cap with ARCEP:  +7% increase for mail as of 1 January 2015  +1% increase for parcels as of 1 January 2015

• Build upon the logistics network (e-logistics)
• Strengthen positions in cross-border / international

Focus on performance

• Adapt the number of facilities to mail volume decline
• Process improvements
• HR optimization

Price

PAGE 15

Services-Mail-Parcels

5 1 2 3 4

A leading express parcels road network in Europe

Business & revenue split Market positions on the CEP market* Key strengths

• The road expert in Europe for <31.5kg parcels

with an interconnected network  benefitting from the shift from air to ground-based delivery

• Leading positions in France & Europe, strong

domestic presence & accountability of local teams

• Hybrid BtoB/BtoC network  ability to address e-

commerce growth driving BtoC volumes (+65% volumes since 2011)

• Innovative differentiating services

Volumes

PAGE 16

77%

• utside France

€4.9bn Revenue

70% BtoB

865m

GeoPost

5 1 2 3 4

30% BtoC

* CEP: Courier-Parcels-Express - Source: Internal market shares study on 2013 data

#1 Russia

Partners GeoPost presence

#2 UK Fastest growing operator #1 Poland #1 France #1 PUDO network #1 Spain #1 Ireland #2 Germany

Pro-active, real- time rescheduling

• ptions: Predict

Over 16,000 Pick-up & Drop-off network in Europe From transportation to services

2001 2014

15 years of external growth

#1 Turkey 2nd largest parcel delivery network (DTDC)

• Further expand value-added and innovative solutions
• Roll-out the most extended and homogenous PUDO network: PickUp 13 countries and

22,000 points in 2015

• Pro-active, rescheduling and real time services: 1-hour definite delivery in 20 countries

before summer 2015

• Expand geographically in EurAsia, Central Asia and Far East
• Gain progressively a broader intercontinental dimension

Strategy: a hybrid BtoB/BtoC growth strategy through service innovation and expansion

Innovate and expand in new markets Enhance existing offer

Network

Pursue profitable growth

PAGE 17

• Competitive, pan European, tailor made, flexible solutions
• Accelerate the move in the B2C market (started in 2008)

Product

GeoPost

• Strengthen European network
• Better interconnect Europe & Russia (new platforms)
• Maximize first-time delivery success rate
• Control ongoing expenses aimed at supporting the growth in demand

5 1 2 3 4

A unique player in retail banking

Business & revenue split

€5.7bn Insurance 3.1% Asset management 2.6% Retail Banking* 94.2%

Key strengths Retail banking is core #1 network #5 asset management #6 NBI

PAGE 18

Market positions(1)

• Safe and sound business model with predominance of

resilient and stable retail banking activities

• Extensive distribution network
• Strong liquidity position with a Loan/Deposit ratio of 75%
• Strong level of capitalization with sound solvency ratios:

12.7% CET1(2)

• Quality of assets confirmed by the ECB’s AQR
• Unique balance sheet:

La Banque Postale

* Included €714m of financial savings commissions on asset management and life insurance

213 213

Regulated savings centralised CDC Loans to customers Customer deposits (excluding regulated savings) Equity & hybrids Other assets HTM portfolio Short term assets /central bank Short term liabilities AFS portfolio Other liabilities Regulated savings centralised CDC

5 1 2 3 4 (1) Sources: French retail banks registration documents , bfinance annual study on asset management (2) Phased-in ratio including Danish compromise for insurance. The fully loaded ratio is estimated at 14%

(in €bn) Customer deposits €163bn

Step up development

Strategy: growing efficiently and profitably

Improve efficiency Conquer attractive segments

• Roll out 1,000 dedicated advisors for high-net worth customers by

2020 on the territory

• Deploy a dedicated commercial line for Pros* (1,000 advisors by 2020)
• Become the reference player in public sector financing
• Drive development on major corporate / institutional accounts
• Accelerate equipment of all customers
• €1bn investment in IT by 2020 to serve strong commercial ambitions

and develop an multichannel model for customers

• Optimized equity provided by recurrent results and support of La Poste
• Cost control: efficiency plan in Financial centers, support functions cost

rationalization

PAGE 19

La Banque Postale

*Professionals 5 1 2 3 4

92% 12% 19% 18% 14% 18% 17% 79% 3% 13% 16% 12% 5% 4% Payment card

• .w. High-end

payment card Home savings plan Life insurance Personal insurance (excl. Health) Home loans Consumer loans Market (excl. LBP) internal equipment rate LBP internal equipment rate

Source : OPERBAC 2012, % of « primary bank » customers equipped in said bank

17,104 retail outlets

The densest physical network in France

PAGE 20

A high-quality network supporting commercial development

96.6% of French population at less than 5km of a postal outlet

Commercial activity of La Poste Network 2014 18%

• f Mail revenue

97%

• f La Poste Mobile sales

26%

• f ColiPoste revenue

100%

• f net collection

for individuals

82%

• f property loans

68%

• f consumer loans
• f Chronopost revenue

9% Launched in 2011

1.15 million clients 182m€ in revenue* A successful offer

• Value-added offers
• Renewed packages

* JV La Poste (51%) & SFR (49%), not included in Group revenue following application of IFRS 11 as of 1/1/2014

La Poste Network

5 1 2 3 4

Strategy

• Optimize postal presence (develop all forms of

partnerhsips)

• Develop banking dimension in main post offices

− pursue banking revenue development: cross- selling & up-selling − develop synergies and strengthen common culture (training 70,000 employees through the new common school )

• Control costs

A dedicated business unit created in 2014

Business & Revenue split A wide range of services

PAGE 21

Digital Services

Key strengths a A new growth driver for Le Groupe La Poste Relational performance Operational efficiency E-services €539m

Billings to

• ther business

units not accounted for in 2014 revenue

• Strong audience: 13.6m unique visitors on 4 main

portals, 3.4m webmail users, 1.4 million Digiposte e-vaults

• Large customer base: 80% of CAC 40 companies are

Docapost customers

• Renowned expertise in online com:

#5 communication Group in France (Mediapost Com), Top 10 advertising online agency (Adverline)

• Deep customer knowledge: #1 data base in France

with 36 million addresses

5 1 2 3 4 *BtoA: Business to Administrations

Boost revenue Support innovation and research Lever internal transformation

• Grow L@Poste en ligne (monetize audience, develop hybrid/digital offers)
• Develop new business around online services platforms (cloud)
• Develop customer knowledge through Big Data
• Launch connected objects (presentation of the Digital Hub

at Las Vegas CES in January 2015)

• Develop digital culture and practices
• Integrate the new devices as work tools

PAGE 22

Key HR management policy Active social dialogue

• 8 employees out of 10 trained in 2014
• Training expenditure: 3.5% of payroll
• 2014: 8 national agreements including
• ne unanimous on social housing
• 2015: 3 national agreements (Feb), part
• f the strategic plan (unprecedented

majority signing) Commitment to diversity and equal

• pportunities
• 89% of owned properties accessible to

people with reduced mobility

• 50.6% women in Group staff
• Invest in sustainable mobility: the 1st electric

vehicle fleet worldwide

• Build low energy consumption/high

environmental quality facilities, signing green leases

• Set photovoltaic installations

Develop responsible offers

• Eco-socio-designed products :

e.g. Green Letter , , Home support services for the elderly (Cohesio), etc.

• Integral Carbon neutrality
• Promote the circular economy

Reduce the environmental impact (transports, buildings)

A strong commitment to CSR

Focus on professional development and training

Financial data

Key figures FY 2014

Financial credit profile

Consolidated P&L

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

21,715 22,163 +2.1%

+0.9% at constant scope

and exchange rates

2014 ∆ in % 2013

Pro forma(1)

778 719

• 7.6%

3.6% 3.2%

• 0.4pt

624 513

• 17.7%
• 222
• 198
• 10.9%
• 125
• 182

+45.1% 215 200

• 7.1%

In €m

1) 2013 pro forma data : 2013 published data restated for IFRS 10 and 11 impacts

• 9.9% at constant scope

and exchange rates

PAGE 24

Mainly from CNP Assurances

Improved by €24m

Revenue(1) in €m An active innovation policy EBIT(1)

in €m

Services-Mail-Parcels: a controlled EBIT decline

404 302 101 109 41 8

546 419

2013 2014

Mail Parcels Subsidiaries

• 1.8%

2013 Pro forma 2014

• 5.8%

addressed mail

11,599 11,395 9,510 9,328 1,574 1,566 515 501

• 23.2%

Volumes/mix Mail Volumes/ price/mix Parcels

• 446

236 +7 83

• 84

+3% as at 1 January 2014

• New services
• Value-added Parcels solutions

1) 2013 pro forma data: 2013 published data restated for IFRS 10 & 11 impacts and new segment information; (2) removal of the moratorium compensation on press tariffs

Contribution Press & moratorium(2) Services, international,

• ther

Price Mail

PAGE 25

5 1 2 3 4

Revenue(1) in €m Volumes(1) in million EBIT (1)

in €m

GeoPost: an ongoing strong development, driven by volumes and acquisitions

2014 Price Volume/mix inc working days Scope and change

+13.3%

4,342 4,921

2013 2014

316 329 284

REX

• excl. provision linked

to inquiry of Competition Authority

EBITpublished

+8.4% at constant scope and exchange rates 2013 2014 393

• 49

210

+4.2%

Volumes +9%

• rganic o.w. :
• +19% UK
• +14% Spain
• +11% France

Tigers and Seur in 2013, Worldnet, Siodemka, and Seur in 2014

781 865

1) 2013 proforma data: 2013 published data restated for IFRS 10 & 11 impacts and new segment information

2013 Pro forma Other 26

Outside France

~80%

France

~20%

BtoB

~70%

BtoC

~30% PAGE 26

5 1 2 3 4

135 136 162 163

297 299

2013 2014

Good dynamics in client equipment Progression in Outstandings

La Banque Postale boosted by client equipment and loans

6,190 6,478

2013 2014

3,601 3,964

2013 2014 Stock of packages (in 000) Stock of insurance policies (in 000)(1)

+0.8% +12.0%

Savings / Sight deposits outstanding (€bn) Credit outstanding (€bn)(2) 54 58 4 7

58 65

20 40 60 2013 2014 Balance sheet savings Financial savings Legal entities Individuals

+4.7% +10.1%

1) Contingency, personal risk, health; 2) Growth excl. Sofiap +9.3%

PAGE 27

5 1 2 3 4

726 842 154 163

880 1,005

2013 2014

Net banking income in €m Cost of risk(3) (CoR) in €m Gross Operating profit & EBIT(5)

La Banque Postale: steady rise in NBI and profitability significantly up

Home savings provision Asset management Retail banking Insurance

5,551 5,673

+4.0%

at constant change and scope,

• excl. home savings provision(1)

154 163

2013 2014

0.25% 0.23% CoR/Outstanding(4)

1) At constant scope and exchange rate and excl. home savings provision; (2) Excluding savings provision; (3) Excluding scope effects (BPE, Sofiap), CoR is up by +€5m ; (4) CoR relative to the credit business (i.e. excl. Insurance and toll) ; (5) Excl. scope, EBIT is up by €106m

5,771

2014 published data 2014 recurring(2)

GOP EBIT CoR

84.7% 82.7%

• Op. ratio

2013 recurring(2)

186 21 14 132 34

Scope

PAGE 28

5 1 2 3 4

Revenue in €m EBIT in €m

Digital Services: a new business unit, servicing development and internal transformation

2013 2014

549 539

• 1.7%
• Intrinsic EBIT slightly negative

tempered by one-offs (~ -€50m,

• .w. costs for restructuring linked

to ending the cheque processing and digitization business)

• Published EBIT of -€62m

Check and desktop publishing activities down, compensated by new services (e- services platforms, Media Data Live(1)

• ffering)

Billings to other business units not accounted for in revenue and EBIT

1) Multichannel retargeting

PAGE 29

Nota

Redesign and new functionalities in 2014 of two main portals

Nota

5 1 2 3 4

Cash generation underpinned by a selective investment policy

PAGE 30

+1,030

Cash flow from

• perating activities (1)

CAPEX(2)

• 844
• 324

Interests and dividends Asset disposals(3) Increase in Net debt External growth(4) and others

+94 181

• 200

2014 figures - In €m

+26

1) CFO excluding banking, including dividends from equity associates ; (2) Gross Capex excl. Banking (€844m) net from vehicle disposals (€26m) ; (3) Excluding vehicle disposals; (4) Including acquisition of financial assets

Services-Mail-Parcels: IT GeoPost: logistic network (new hubs and depots), IT Network: modernization/layout of network Real Estate: modernization and maintenance Digital Services: IT Support & Structures: Vehicles, including electric

844

Balance sheet highlights

Equity(1)(2) Net debt(1)

1) 2013 proforma data : published data restated for IFRS 10 and 11 impacts. Does not take into account the banking activity for which the concept is not relevant; 2) Group share

PAGE 31

Net debt(1) / Equity(1)(2)

One of the largest real estate portfolio after the State ~€4bn in 2014

Largest item

• n the Group balance sheet

High value real estate

High-quality, highly diversified assets

• 11,662 buildings / facilities
• 6.8 million m², 59.5% directly owned

From small post offices to very large facilities 1.36 1.08 0.67 0.46 0.44 0.44 2009 2010 2011 2012 2013 2014 (in €m) (in €m)

Financial data

Key figures FY 2014

Financial credit profile

Strong footprint on the bond market

A low risk capital structure given currency, maturity & interest profile

Maturity Issue date Amount (€m) Euro Bonds

• Jul. 2017
• Jul. 2002

600

• Jun. 2023
• Jun. 2003

1,000

• Jul. 2019
• Jul. 2004

800

• Nov. 2021
• Nov. 2006

1,000

• Feb. 2018
• Feb. 2008

500

• Feb. 2016
• Feb. 2009

500

• Nov. 2024
• Nov. 2012

1,000 GBP Bonds

• Dec. 2016
• Dec. 2000

244

(*) Considering debt-matching investments as fixed-rate. Fixed rate as at 31/12/2014 ; (**) Cost of debt at 4 years 2014-2017 as at 31/12/2014

PAGE 33

€7.005bn gross debt

Mainly euro-denominated bonds Smooth redemption profile with no refinancing wall

744 600 500 800 1000

1000 1000

Predictability & stability

• f interest expense

100% foreign currency hedge

€5.656bn

nominal value of bond debt

5.9y

Average maturity

~95%

Cost of debt**

2.88%

% Fixed-rate*

Foreign currency- denominated debt issues are systematically hedged using currency swaps

4% €m

Liquid, secure and diversified liquidity position Significant committed & undrawn resources

€2.999bn Strong liquidity

Cash & other asset items

€725m €200m

Bilateral line with LBP 2018 2019

€300m

Overdraft facility with LBP Renewed tacitly annually French commercial paper

€1.5bn €500m

European commercial paper

Significant liquidity sources

Syndicated loan €650m + bilateral line with BNPP €75m

PAGE 34

Long-term Short-term Secure investment policy Secure investment in:

• Interest-bearing accounts,

term deposits and ≥ A2/P2 short-term debt securities

• Debt-matching investments

rated ≥ A-/A3 Credit risk controlled by a system of limits, of which:

• Maximum nominal

amount not to exceed

• Maximum loss limit

~ €200m drawn Undrawn

Outlook

Performance Development

La Poste 2020: Conquering the future

A new strategic plan to 2020 to restore sustainable cash generation

PAGE 36

through priority action drivers

Accelerate the development

• f existing business

activities Capture new markets Develop through a pro-active selective acquisitions and partnerships policy

Synergies

Control expenses Sign a social pact

Ensure and modernize public service missions

Strengthen cooperation between business units Focus on 5 high-priority shared projects

La Poste 2020 Financial business plan

PAGE 37

~+2.2% organic growth per year

• Impact of declining mail volumes and low

interest rates

• Strengthen development
• Adapt costs to business evolution
• Specific effort on head offices and

support functions

€25bn €1.9bn

Revenue 2020 Operating profit 2020

€6bn CAPEX

• ver the period

Up to ~€2bn selective acquisitions

• ver the period

Global level of net debt unchanged - Improved gearing

PAGE 38

Services- Mail- Parcels GeoPost La Banque Postale Digital Services

• Limited decline in revenue
• Mail volumes down -6% to -7% a year

~€400m

• Strong growth in revenue to ~7bn
• Volumes up ~7% per year

~€540m

• Average 3.3% growth in revenue

per year to €7bn ~€1.5bn

• €1bn in revenue 2020 including

acquisitions €65m

La Poste 2020 Financial business plan

Revenue Operating profit

Contact details

Contact details

Yasmina Galle Head of Investor Relations and Financial Communication

PAGE 40

Yves Brassart CFO Executive VP of Le Groupe La Poste Eric Bosdonnat Head of Financial Operations and Treasury yasmina.galle@laposte.fr +33 (0)1 55 44 17 02 yves.brassart@laposte.fr +33 (0)1 55 44 16 56 eric.bosdonnat@laposte.fr +33 (0)1 55 44 17 05

IR Contact com.financiere@laposte.fr

Financial information available

• n http://legroupe.laposte.fr/en/Finance

PAGE 41

Appendices

A 100% public ownership company by law

Supportive, stable and long term shareholders

Article 1 of Act 2010-123 of 9 February 2010 The share capital shall be held by the State & by other public sector legal entities except for the portion that may be held under employee shareholding arrangements

100% 26.32% €1.05bn April 2011 €1.05bn April 2012 €600m April 2013

a €2.7 bn capital increase

• ver 2011-2013

PAGE 43

Employee representatives User representative CDC representatives Chairman & CEO Nominated by decree Nomination proposed by Government and/or CDC Regional authority representative State representatives

Board of Directors of 21 Members

Government commissioner

+

Head of the State's Economic and Financial Verification Mission Assisting with no voting right

73.68%

4 public service missions with requirements above peers and above the EU Directive

Universal postal service Press transport & delivery Banking mission Regional planning and development

6 days / week

• 1. Letter mail <2kg
• 2. Parcels < 20kg

6 days / week

• 1. Letter mail <2kg
• 2. Addressed

parcels < 20kg 5 days / week

• 1. Letter mail <2kg
• 2. Parcels < 20kg

5 days / week

• 1. Single letters and

printed material <2kg

• 2. Parcels < 10kg

5 days / week

• 1. Letter mail <2kg
• 2. Parcels < 10kg
• 3. Press
• 1. Letters <2kg
• 2. Parcels < 20kg

*Mail <50g still under monopoly. Swiss Post doesn’t fall within the scope of the UE Directive although it has a specific mandate (« desserte de base »), specific obligations and a universal service close to that of the EU

           

         

Universal service Banking accessibility

*

PAGE 44

6 days / week





Requested by the EU

• n a 5d/week basis

Additional missions entrusted by the State

Principle of subsidiarity: each Member State adopts the measures necessary to ensure that the universal service includes the minimum facilities described in European Directive => thus differences in the number of delivery days or perimeter of service

Active customers, in millions**

A pure retail bank in France

PAGE 45

Number of

• utlets, in 000***

NBI Retail banking France, in €bn L/D ratio* Common Equity Tier 1 phased-in

*2014 –Annual reports of French banks ** Retail customers in France. Estimated from penetration rates in current accounts competitors (OPERBAC LBP 2012) *** Branches in France **** Estimated ***** L/D ratio of Credit Agricole SA

75% 108%**** 98% 109%***** 121% 10.0 12.7% 10.5% 10.9% 12.8% 11.9% 10.8 19.1 13.2 6.8 8.3 13.6 7.1

(-1,0%) (-1,1%) (+0.7%) (-3,4%)

Caisses Régionales Caisses D’Epargne

5.3

(+1,2%) 5 1 2 3 4

La Banque Postale

A proven capacity to address challenges, with a clear business strategy

2003-2007 « Performance & Convergence » « Performance & Trust » « Ambition 2015 » « La Poste 2020: Conquering the Future » 2008 2010 2014

• Preparing for market liberalization
• Being more customer-centric

(client commitments)

• Organization by business line
• Increased accountability of
• perational managers
• Creation of La Banque Postale

Spearheading the company’s major modernization projects… …in an environment that became fully competitive and growingly digital

• La Poste becomes a

public limited company

• Major investment

program, both self- financed and through a €2.7bn capital increase

• Committing strongly to

CSR

Beyond 2014: conquest and development at the customer’s service

• Conquer and develop
• A more cooperative
• rganization

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