Initial Public Offering

Presentation to Stockbrokers & Financial Intermediaries

27th December 2007 Background

 April 1998 - Company formation & assumption of role of Department of Posts

 Present shareholding effectively : 60% - Lombard Bank plc 40% - Malta Government Lombard - Structure

Lombard Bank Malta p.l.c. ** (approx.1300 shareholders at Dec 2006)

Lombard Asset Managers Limited Redbox Limited (75%) (100%)

*35% from New Zealand Post in August 2006 MaltaPost p.l.c.* 25% from Malta Government in September 2007 (60%) ** Marfin Popular Bank is in the process of purchasing a 43% strategic stake in Lombard Bank Marfin Popular Bank (formerly )

 Holds assets of circa EUR 29 billion & Total Equity in excess of EUR 3.5 billion  Offers full range of financial services to over 1 million customers - 400 offices in 13 countries employing 6,250 persons  Over 400 branches in Cyprus, Greece, Australia, UK, – Serbia, Romania, Estonia & Ukraine rep. offices in Canada, South Africa, USA & Russia Lombard Bank Malta plc

 In the Malta market for over 50 years  Registered in Malta in 1969  Listed on Malta Stock Exchange in 1994  Licensed : Credit institution Investment Services Provider  Authorised: Currency dealer Financial intermediary Lombard Bank Malta plc

 Member : Deposit Guarantee Scheme Investor Compensation Scheme Malta Bankers Association Malta Clearing House

 Branches in , , St Julian's , , Victoria –  Staff members 130

…………… ..a full-service bank Lombard Bank Malta plc

Total Assets Lm millions

250 206 186 183 188 200 161 122 150 123

100

50

0 2000 2001 2002 2003 2004 2005 2006 Lombard Bank Malta plc

Shareholders' Funds Lm millions

19.1 20.0 16.6

15.0 13.3 11.7 9.5 10.2 8.8 10.0

5.0

- 2000 2001 2002 2003 2004 2005 2006 Lombard Bank Malta plc

Pre Tax Profit Lm thousands

3,859 4,000 3,691 3,500 3,000 2,183 2,576 2,500 2,000 1,240 1,120 1,403 1,500 1,000 500 0 2000 2001 2002 2003 2004 2005 2006

Staff: Dec 2000 - 127 : Dec 2006 - 130 Strategic Partnership

Lombard Bank considers its investment as a strategic partnership presenting considerable synergy potential, resulting in significant added value for all stakeholders

MaltaPost & Lombard Bank ’  Considerable opportunity to expand MaltaPost s products & services and to diversify into financial services by targeting a market segment not catered for by the Bank  Enhance branch network & maximisation of critical mass  MaltaPost is anchored to a well respected and successful financial institution Profile

 5 - Delivery Hubs  33 - Post Offices  27 - Sub-Post Offices  431 - Stamp Vendors  145 - Vehicles

Staff Complement : 1998 - 872 2007 - 581 Business Overview

’  Malta s leading postal services company  Among the largest retail networks  The only licensed Universal Service Provider  Sole provider of mail weighing up to 50 grams (within Reserved Area)  6 days a week delivery throughout Malta &  Significant investment in IT Services

 Full process of domestic & international mail  Direct Mail Services –  Unaddressed Mail (Mail shots etc)  Express & Courier Services  Document Management, scanning & invoice processing.  Comprehensive PO Box facilities, including pick-up & delivery service  Door-to-door distribution service  Philatelic Bureau with strong database  33 post offices also providing bill & licence payments and money transfers Revenue Analysis

MaltaPost3 R%evenue Streams Stamps, parcel post, and 11% postal stationery including income from foreign inbound mail

Others, including: financial services, merchandise, document handling, bill collection, unaddressed mail 86% Philatelic sales

Postal revenue still makes up the largest % of Total Revenue International Context

The 2006 report by the Universal Postal Union shows letter volumes are stabilising while parcel volumes & total postal revenue are increasing

 Domestic letter-post has returned to 2000 levels  International letter-post declined 2% against 2005  Domestic & International parcels increased by 4.8% against 2005

Revenue segment Global average % of revenue MaltaPost % of revenue YE 31 December 2006 YE 30 September 2007 Letter post 52% 66%

Parcel post 27% 7%

Financial services 14% 1%

Other services 7% 27%

 Key for MaltaPost is to increase the proportion of revenue generated from financial services & parcels  Another focus is to increase the proportion of sales from philately Quality of Service (Local)

100% 94.9% 92.1% 95% 90.8% 92.0%

90% 85.1% 85.2% 85.3%

85% 81.1%

80%

75% 2001 2002 2003 2004 2005 2006 2007 2007 Target

MaltaPost results consistently exceed targets set by Regulator (M.C.A.) Quality of Service (International)

 MaltaPost achieved a result of 94.5% for this calendar year (Jan-Nov 2007) for inbound mail delivered one day after arrival in Malta

 MaltaPost ranked 3rd out of 29 European countries, whose average was 88.02% of mail delivered the next day

Source: International Post Corporation (IPC) Strengths

 A strong strategic partner in Lombard Bank  Wide brand recognition  Extensive branch network  Dominant market position  Access to worldwide network.  Consistently high service levels  Flexibility to customise services  Knowledge database  Significant IT capabilities Company Strategy

’  To remain Malta s foremost provider of postal services by:  extending & improving its activities thereby retaining customer satisfaction & loyalty  upgrading processes  launching innovative products & services to meet changing market environment  Internationally raise the profile of Malta philately  Introduce Financial Services via expertise of Lombard Bank.  Entry into Transport & Logistics by building on existing customer relationships & network Financial Performance

For the years ended 30 September 2008 2007 2006 2005 (Forecast) €’ €’ €’ €’ 000 000 000 000

Revenue 19,105 18,510 16,929 16,884 Gross Profit 4,430 4,324 3,088 2,928 Operating Profit / (Loss) 2,052 1,474 360 (4) Profit before Tax 2,259 1,663 478 77 Net Profit after Tax 1,486 1,091 403 (64) Total Assets less Current Liabilities 10,056 10,190 9,010 8,591 Total Equity 8,528 8,454 7,563 7,160 € 1 Earnings per Share ( cents) 0.0531 0.0390 0.0144 (0.0023)

1 € Calculated on the basis of 28,000,000 ordinary shares of a nominal value of 0.25 each Ratio Analysis

2008 2007 2006 2005 (Forecast) Gross Profit margin 23.19% 23.40% 18.20% 17.30%

Operating Profit margin 10.70% 8.00% 2.10% 0.00%

Operating Profit to Total Assets 12.00% 7.70% 2.40% 0.00%

Operating Profit to Capital Employed 24.10% 17.40% 4.70% n/a

Profit before Tax to Total Equity 26.50% 19.70% 6.30% 1.10%

Profit after Tax to Total Equity 17.40% 12.90% 5.30% n/a Share Offer

€  Offer of 11,200,000 shares of a nominal value of 0.25c € per share at a Share Offer Price of 0.50c per share

 Offer being made by Government of Malta & Malta Government Investments Limited who currently jointly own 40% of MaltaPost plc

€  MaltaPost market capitalisation at 14,000,000

 Company to adopt a Dividend Policy of distributing up to 50% of yearly available profits. Key Ratios & Multiples

Sept 07 Sept 08 Peer Group (Actual) (Estimate) (Europe) P/E ratio 12.83 9.42 12.9

Price/NAV 1.66 N/Avail. 2.9

EV/EBITDA 2.81 2.25 6.7

Gross Div. Yield 6.00% 8.17% N/Avail. Allocation & Fees

 Pre-placement - 5,040,000 shares to be offered. Minimum subscription - 250,000 shares  Allocation policy in pre-placement to ensure an equitable spread among intermediaries.  General Public Offer - minimum subscription - 2000 shares.  Fee of 1.5% on successful applications will be payable to Selling Agents Advisors

Sponsoring Stockbrokers

Legal Counsel

Financial Advisers & Reporting Accountants

Managers & Registrar Timetable of Offer

–  8 January 08 Formal Notice & Press Conference by the Government of Malta –  14 January 08 Pre-placement of 5,040,000 shares (45% of issue) –  15 January 08 Open of General Public Offer –  18 January 08 Close of General Public Offer –  23 January 08 Announcement of Allocation Policy –  30 January 08 Commencement of Trading