Providing fast and low cost parcel delivery

Stream B: A strategic opportunity - capitalising on the growth of e-commerce

Price vs. speed? – balancing two conflicting priorities

Getting it right for the end-user: prearranging time of delivery

Reverse logistics: assessing the challenges and opportunities

Tailoring the offering to serve a diverse range of customers

Providing fast and low cost parcel delivery

Rafał Brzoska, Chief Executive Officer, InPost

European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10

InPost in the last 12 months …

Changes since our last presentation in Amsterdam in March 2009 at the

European Postal Services conference

Mail volume grew from 4.4 mln items to 10 mln items per month

New sorting hub and 3 automated sorting machines

Launching Paczkomaty 24/7 project – 250 automated parcel terminals

are now present in 59 cities and growing

Rebranding of the company (new logo, new claim, 3 new websites,

presence in social media) – InPost. Modern Post


Agenda

Very briefly about InPost

E-commerce in Poland

InPost solution towards e-commerce

New e-solutions


Briefly about InPost

Integer.pl Group - introduction

Distribution of unaddressed mailmarket leader in distribution for

supermarket chains

Postal serviceslargest independent postal operator

Financial servicesBasic financial and insurance services

offered in 100 Point of Sales

Distribution of UDM in UkraineOperations started in January 2009.

Currently present in almost 100 citiesAutomated parcel terminals

250 machines in 59 cities

Logistics serviceslogistics support to Group’s

subsidiaries


Standard, express and registered

express letters, parcels as well as

manufacturing and installation of

commercial mailboxes

Main focus on business customers

(95% of income).

Integer.pl – UDM InPost InPost Finance

Integer.UaUDM in Ukraine

InPost Paczkomaty e-commerce

Hybrid mail transactional

mail

Market liberalisation

in Poland from 2013

1999 2006 2007 2009 2009 2010 2013


Growing mail volume of InPost

Growth from 0,3 million letter per month in Q4 2006 to9 million letters per month in Q4 2009

Goal for Q4 2010 is to deliver 19 mln letters a month


E-commerce in Poland

Postal market: 1990 vs. 2010


E-commerce – World Stats

Source: IMRWorld, 16.03.10

1.82 billion Internet users

Almost 500 billioneuro spent on e-retail

Constant growth of e-commerce

Further prospects for growth


Reasons to launch Paczkomaty 24/7 in Poland

Very dynamic e-retail growth in the last years

13 bln PLN –Polish e-

commerce market size for

2009 according to Sklepy24.pl

36.4% growth compared to 2007

Almost 7.500 e-stores active inPolish internet

6.9 mln Polespurchased sthover internet

Source: Polish e-commerce, Polish DMA & E-commerce Poland, Sklepy 24.pl


InPost solution towardse-commerce

Paczkomaty 24/7


Size Number of boxes Max dimensions (in cm)

Size A 32 8 x 38 x 64 cm

Size B 32 19 x 38 x 64 cm

Size C 12 41 x 38 x 64 cm

Automated delivery terminalssystem for a shipment collection

The answer for a fast growing e-commerce market in Poland thatmeet customers needs (fastdeliveries, longer opening hours –24/7 and attractive prices)

Locations: 250 locations in 59 cities

450 locations in H1 of 2010

Paczkomaty 24/7


Process overviewDelivery option

Onlinepurchase

Parcel collection from Paczkomat

SMS / email notification

Delivery time

1. Email / SMS notification about parcel being delivered to the machine

2. The customer has 3 days for parcel collection1. After 2 days email / SMS notification is sent to customer reminding about the parcel in the machines

3. After 3 days parcel is then transferred to InPost’ regional branch

4. Customer has 11 days for parcel collection

5. After 14 days the parcel is then returned to sender


No need to queue at post offices or await for courier – youdecide when and where you want to collect the parcel

Accessibility - open 24 hours a day, 7 days in a week

Deliveries within 2 working days

Competitive prices

Email / SMS notification when the parcel is put into themachine

Benefits


Postal dilemnas …



Reverse logistics: assessing the challenges and opportunities

How does InPost solves those problems …



… why not to do both?

Price the lowest price on the market

reducing the problem of the last

mile

Speed open quality policy - stats

available on the web every day

96.7% delivered next day

standard service is D+2



… why not to give the customer to decide?

35% of parcels collected during first 6 hours

53% collected during first 24h

Almost 40% of parcels collected during night hours (18:00 – 8:00)


Reverse logistics: challenges and opportunities Reverse logistics:

Imagine cable / telecom companies selling internet modems

Customers have return labels that they can only scan and put it

back to the automated parcel terminals

Other improvements:

Option to reserve boxes for senders for 12 hours

Targeted advertising on the screens of the machines

Prolonging the time to keep the parcel inside the box with 1 SMS

(premium paid text message)


New e-solutions

Mail volumes are declining … In most countries mail volume is declining, parcel business is growing

InPost volume is growing, parcels are also growing but …

… InPost’s strategy is to have 30% of income from non-mail business

E-projects for 2010:

E-invocing

Mobile payments

Hybrid mail

More to come on that at IEA Marketforce 2011 ;-)


e-services – that is sexy …

Hybrid mail

E-invoicingMobile payments


Multi-operational e-invoice is an electronic

invoice confirmed by a qualified electronic

signature

Customer acquired by InPost Finance agrees to

receive invoices electronically from all the

Senders who transmit documents via InPost

The customer chooses the form of provision of e-

invoices by e-mail via web or by mobile phone

Archiving documents for 6 years

Sharing documents at the request of tax

authorities

Multi-operational e-invoicing


Innovative (costless for Sender) service which consists of regulating the payment by the payer using a mobile phone

Additional ways to accelerate the rotation of receivables from

customers

Ability to manage your payments via website

Method of payment safer and more convenient than traditional

services

SMS payment


The project is organised by Fibra-Hallo.pl in a cooperation with InPost

Hybrid mail

Central management center of

hybrid mail in Warsaw

15 local priting centeres in

Poland

Backup services in emergency

situations


Thank you!Contact details:

Rafał BrzoskaChief Executive Officer


Business

Providing fast and low cost parcel delivery