The use of alternative postal operators in the e-world

Introduction Postal trends E-services Social-commerce

The use of alternative postal operators in the e-world

Rafał BrzoskaCEO, InPost

World Mail & Express Europe Conference, Copenhagen, 15-17 June 2010

Introduction to Integer.pl Capital Group

Integer.pl Group - introduction

Distribution of unaddressed mailmarket leader in distribution for

supermarket chains

Postal serviceslargest alternative postal operator in

Poland

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

300 machines in 67 cities

Logistics serviceslogistics support to Group’s

subsidiaries


Constant income growth in the last years

Income growth of 2009 by 40% (from 95 mln PLN to 135 mln PLN)

• 1,03 billion unaddressed compared to 982 mln in 2008• 74.84 million addressed items compared to 28,12 mln in 2008

In 2009 we delivered :

In 2009 we almost tripled mail volumes and increased UDM by 2%

Integer.pl in numbersResults (in

thousand PLN) 2005 2006 2007 2008 2009 Q1 2010

Net income fromsales 31 507 44 778 62 123 94 945 135 874 42 196

Operating cots 29 215 43 029 58 897 91 045 126 724 34 775

EBIT 2 303 1 826 3 533 8 505 12 333 7 421

Net profit 1 921 1 584 2 751 6 481 10 279 3 839


Growth from 0,3 million letters in

Q4 2006 to 12 million letters per

month in Q1 2010

Optimistic prospective for

alternative postal operators

… but looking carefully for

improvements thanks to e-services

Growing mail volume of InPost

InPost’s strategy is to have 30% of

income from non-mail business


World Mail Awards – Growth Award 2010


Postal trends

Trends in European mail market

Decline in mail volume by ~5% yearly (gives

50% in 10 years time!)

Electronic subsitution (emails, e-documents)

Technology improvements

Market liberalisation and new entrants

New generation of heavy users of Internet,

social media and others

Growing importance of e-commerce

Parcel business is growing (especially B2C)


E-commerce growth

E-commerce is growing

25.6% of world population with

access to Internet - IMRWorld

Double growth of online retailing

% of total (3.2% in 2009 to 7.4% in

2011) – PayPal UK Online Retail Report

36% growth of e-commerce in

Poland in 2009 – Sklepy24.pl

Lots of new opportunities


E-services @InPost

InPost’s e-services

Hybrid mail

E-invoicing

Mobile payments

Paczkomaty 24/7


Self-service pick-up points

The answer for a fast growing e-commercemarket in Poland that meet customers needs(fast deliveries, longer opening hours – 24/7 andattractive prices)

SMS / email notification about the parcel in themachine

Additional services:

Insurance

Cash on delivery

300 machines in 67 cities

450 machines by end of 2010

Paczkomaty 24/7Size Number

of boxesMax 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


Paczkomaty 24/7 - statistics 96,69% delivered day after

posting

34,9% of parcels collectedbetween 18:00 – 9:00

48,18% of parcels collectedwithin 6 hours after leaving it inthe machine

* Source: InPost, data from October ’09 – April ‘10


Social-commerce

Only a few countries with internet penetration above 15%

Internet penetration in 1998


Many countries with internet penetration above 30%

Some European countries with 70% plus

Internet penetration in 2008


Digitalization of today’s world

No demand for letter writing e-mails and

booming of Facebook, Twitter, YouTube

Mail business is no longer sexy for young

generation

How to attract younger generation? – Social

Media ?

Social-commerce - How to make business out

of social media?

Social media – new communication channel


Internet users in the world - 1,769,344,264

E-mail messages sent today - 229,522,502,610

Blog posts today - 488,441

Google searches today - 2,450,024,876

Source: BBC & Realtimestatistics.org


#InPost @Social Media

Blog

Facebook YouTube

Microblog

InPost blog


Another communication channel with

internet users, bloggers, journalists and

InPost employees

Posts:

News from InPost (new products,

conferences, promotions)

Liberalisation

Postal and e-commerce topics

News from the World

Miscellaneous

InPost - microblogging


Discussion and communication with

internet user

Current activities of InPost

Building brand awareness of InPost as an

alternative towards PPO

Building customer loyalty

Contests

Facebook for @InPost and @Paczkomaty


2 channels for @InPost and @Paczkomaty

Integration with other channels

Photos / News / Videos

Latest news

Building brand awareness

Applications

Applications and games


Paczkobranie – „Parcel-rooming”

Pick up the box and win the physical

award from our e-commerce partners

Award collection from Paczkomaty 24/7

Interesting awards from our partners

How to merge e-commerce with social media?


Social-commerce

Increasing role of FacebookMore social media channels

E-commerce worth 13 billion PLNGrowth by 30% p.a.

Source: Sklepy24.pl

FBShop - e-comm solution on Facebook


Thank you for your attention!

Contact details:

Rafał BrzoskaChief Executive OfficerEmail: rbrzoska@inpost


Business

The use of alternative postal operators in the e-world