Magyar Posta at a glanceMagyar Posta at a glance

Budapest, 28 05 2010

International Business UnitLevente LÁSZLÓ

1 CEE and Hungary

2 Briefly about Magyar Posta

33 Briefly about International Business Unit

4 CEE Competence Center

� Europe and CEE

� Hungary and CEE market size

An average of 60-75% of the population is living in urban areas.

COUNTRY POPULATION

Bulgaria 7’700’000

Czech Republic 10’200’000

Hungary 10’000’000

Poland 38’200’000

Romania 21’700’000

Slovakia 5’400’000

Slovenia 1’990’000

TOTAL 95’190’000

source: Study from PriceWaterHouseCooper, 2008

� Briefly about Hungary

� Population : 9 ,905,596 (July 2009 est.)� Median age: 39,4 years� Age structure:

• 0-14 years: 15%• 15-64 years: 69,3%• 65+ years: 15,8%

� GDP per capita (PPP): $ 19,800 (2008 est.)� GDP composition :� GDP composition :

• Agriculture: 3,2%• Industry: 31,9%• Services: 65%

� Currency : HUF � Capital: Budapest

� Strategic role of Hungary in the European transport system

To Ukraine• Lviv • Kiev

Towards Russia and Asia

Corridor 5To Germany:

• Dresden• Nuremberg

To Northern Sea ports

Corridor 4

Corridor 7

River Danube:River Danube:

From Southern Germany...

Corridor 5

To Adrian ports • Koper• Rijeka• Ploce

Corridor 7

... to the Black Sea

Corridor 4

To Black Sea ports• Istanbul

• ConstantaCorridor 10To Aegean Sea Ports

� International recognition – World Mail Award 2009

Magyar Posta for its transformation from a bureaucr aticpostal organization to a customer orientated servic e provider.

� Briefly about Magyar Posta

� Mail : 1,6 billion pieces / year� Parcel : 5,2 million pieces / year

� 93.000 km2 � 10 million inhab.� 3 500 localities

Hungary

The Company

� Corporatized in 1993� 100% state -owned

� Headcount : 35,000 employees� Network : 2,744 fixed + 356

„mobile” post offices (serving 1000 settlements)

Postal network

Core business

� Parcel : 5,2 million pieces / year� Financial trans. : 335 million / year� Revenue : 770 million EUR

� 100% state -owned� Designated USP

Business Units Ildikó Sz őts,

CEO DomesticCorporate Customers

DomesticPrivate

CustomersInternationalCustomers

LogisticSystems

FinancialServices

� EBIT and PBT 2003 - 2009

Operating profit in million EUR

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2003 2004 2005 2006 2007 2008 2009

11,1

15,5

22,418,4 18,9

29,2

20,5

EBIT in million EUR

�Structure of Turnover

� International recognition – IPC Certificate of Excel lence

Quality is always rewarded !

�Magyar Posta International Business Unit fully meets the mostrigorous quality standards in handling international mail.

� Only 12 other operators in the � Only 12 other operators in the world have had the privilege to be awarded.

� It is also the proof that our efficiency can meet your company’s requirements .

� Environmental Protection

� The introduction of the environmental management system (EMS)

� Clean air protection and energy management

� Waste management

� Joined programs of international postal organizations (UPU, IPC, PostEurope).

�Results of 2009 customer satisfaction survey

13

� Briefly about International Business Unit

Established as business unit in 2004 to support the international activity of Magyar Posta.

History

VisionTo be recognized as Competence Centerfor CEE – for international postal

� International Business Unit is responsible for all international mail (letters, parcel and express) activities of Ma gyar Posta

Vision

Priorities

for CEE – for international postal services in the CEE and SEE countries.

(1) international activity based on partnership and bilateral agreements

(2) Leverage among the different sales channels and solutions

(3) One Point of Entry to CEE-region for international postal services

� International Business Unit (strategic overview)

Traditional international mail business

- 2004

Be the CEE Competence Center for our customers

2009 - 2012

2005 - 2008

Earning the right to play on international market

• improving distribution • strategic partnerships

• improving distribution quality

• joining REIMS-East

• joining IPC-IDM

• joining IPC-EPG

• improvement of the product portfolio

• joining Pay-for-Performance EMS

• bilateral agreements & partnerships

• outbound and inbound activity

• UPU products

• new sales & distribution channels

• tailor-made product portfolio

• low cost CEE logistic network

• focusing extensively on the customers’ needs

� CEE Competence Center ����

CEE Sales and Distribution Channels

(1) Terminal Dues – Utilizing UPU, Bilateral and Multilateral (REIMS East) agreements for

the final delivery of international mail.

(2) Direct Entry – Utilizing the domestic products and specific

country conditions of the receiving PPO for the final

delivery of mail.

.

(3) Alternative Delivery Solutions (ADS) – Utilizing

ADS including PPOs and delivery networks.

� What are we doing ? (regional-distribution model)

� Postage cost� Transport cost� Distribution cost

Leverage

Price

Reliability Service

� Delivery lead-time � Transport lead-time

Leverage Price-Time-Product

Lead-time Product

Efficiency

� Letter product � Parcel product� Express product

� What is motivating us? (satisfied customers)

� Thank you for your kind attention !

Ask for a competitive quotation ����

e-mail: international@posta.hue-mail: international@posta.hu