Hungary and CEE market size (inhabitants) COUNTRY POPULATION An average of 60-75% of the population is living in urban Bulgaria 7’700’000 areas. 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 Magyar Posta Hungary Postal network 93.000 km2 Headcount: 35,000 employees 10 million Network: 2,744 fixed + 356 inhab. „mobile” post offices 3 500 (serving 1000 settlements) localities The Company Core business Corporatized in Mail : 1,6 billion pieces / year 1993 Parcel : 5,2 million pieces / year 100% state-owned Financial trans.: 335 million / year Designated USP Revenue: 765 million EUR (2008) Ildikó Szűts, Business Units CEO Domestic Domestic Corporate Private International Logistic Customers Customers Customers Systems
International recognition – World Mail Award 2009 Magyar Posta for its transformation from a bureaucratic postal organization to a customer orientated service provider.
Briefly about International Business Unit International Business Unit is responsible for all international mail (letters, parcel and express) activities of Magyar Posta History Established as business unit in 2004 to support the international activity of Magyar Posta. To be recognized as Competence Center Vision for CEE – for international postal services in the CEE and SEE countries. (1) international activity based on partnership and bilateral agreements Botond Szebeny, Exec. Director Priorities (2) Leverage among the different sales channels and solutions (3) One Point of Entry to CEE-region for international postal services
International recognition – IPC Certificate of ExcellenceQuality is always rewarded ! Magyar Posta International Business Unit fully meets the most rigorous quality standards in handling international mail. 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.
Activity of the International Business Unit (overview) Be the CEE Competence Center for our customers Earning the right to play Traditional on international market 2009 - 2012 international mail business 2005 - 2008 - 2004 • strategic partnerships • improving distribution quality • implementing different sales & distribution • outbound and • joining REIMS-East channels inbound activity • joining IPC-IDM •implementing a suitable • UPU products • joining IPC-EPG product portfolio • improvement of the •implementing a low cost product portfolio CEE logistic network • joining Pay-for- • focusing on the Performance EMS customers’ needs • bilateral agreements & partnerships
Sub-Regional clusters expected in mail consolidation Mail expected to consolidate in Europe based on regional distribution consisting in downstream solutions designed to suit perfectly to the specific needs of the companies with regional activities.Source: IPC Senior Executive Forum, Brussels, 9 and 10 October 2008
Top 3 relations CEE countries – international letter mail (outbound) CZ DE; 29 AT; 8 SK; 23 SI DE; 20 AT; 23 IT; 13 SK DE; 8 Europa; 9 CZ; 47 RO DE; 20 IT; 14 HU; 9 HR DE; 22 Italy 6 SI; 12 BG DE; 18 Europa; 19 IT; 6 PL DE; 33 Europe 10 UK ; 5 HU DE; 29 AT; 12 Europa; 10 0% 20% 40% 60% 80% • Germany is the most important partner for the CEE countries • RO - Hungary is the 3rd important relations for international letter mail
Top 3 relations CEE countries – international parcel (outbound) CZ DE; 25 AT; 5 SK; 25 SI DE; 29 AT; 15 IT; 8 SK DE; 11 Europa; 12 CZ; 44 RO DE; 17 IT; 15 UK; 9 HR DE; 29 IT; 13 SI; 10 BG DE; 16 Europe, 19 IT; 6 PL DE; 30 Europe, 9 UK; 6 HU DE; 29 AT; 8 Europa; 9 0% 20% 40% 60% 80% • Germany is the most important partner for the CEE countries
CEE Competence Center CEE Distribution Channels(1) Terminal Dues – Utilizing (2) Direct Entry Mail –UPU, Bilateral and Multilateral Utilizing the domestic products(REIMS East) agreements for and specific country conditions ofthe final delivery of international the receiving PPO for the finalmail. delivery of mail. (3) Alternative Delivery Solutions (ADS) – Utilizing ADS including PPOs and delivery networks. .
Magyar Posta International – More than just delivery ! CEE COMPETENCE CENTER INTERNATIONAL SOLUTIONS LETTER MARKETING PUBLISHING PARCEL & e- POST Solutions Solutions Solutions EXPRESS Solutions Solutions - transactional - unaddressed & - periodicals - parcel - hybrid mail mail semi-addressed - catalogues - express - e-COD - priority - DM - books, - reverse - e-PPI - economy - database - Printed matters logistics - digital solutions - registered - business reply - COD (value added) - inserting - track & trace
What makes us different ? Optimal location - Gateway to Europe and CEE delivery We can reach many of CEE’s emerging economies on our borders by road within 6 hours and we deliver to most European destinations within 48 hours by air. Knowledge of Hungarian and CEE market We provide a full range of competitive and personalized solutions for traditional business mail and parcels and for high volume direct mail for CEE destinations International Network We operate through Exchange Offices in major markets with specialized staff to offer you the most cost-effective solutions and smooth handling Dedicated Account Manager The Account Manager serves as a single point of contact, responding to all your questions and ensuring smooth, on-time handling of all your mailings.
What is important for the customers ? Source: BCG/IPC, 2008
What are we doing ? (regional-distribution model) Price Postage cost Transport cost Distribution cost Reliability Service Leverage Price-Time-Product Lead-time Product Letter product Delivery lead-time Parcel product Transport lead-time Express product Efficiency
What is motivating us? (satisfied customers)
CEE Competence Center – Letter mail prices for 2009
Global downturn makes forecast difficult Go CEE ! * The Ifo World Economic Climate Index is based on a monthly survey of more than 7,000 companies in Germany, asking them for their opinion of their current business situation and their expectations for the future business climate. The index measures the changes in business confidence and is an early indicator for economic development in Germany.
Thank you for your kind attention ! The CEE countries represent a massive business opportunity that Magyar Posta International – as your single-source international postal partner – can help you exploit to the full ! Ask for a competitive quote e-mail: firstname.lastname@example.org