This document discusses trends in postal services and e-commerce, and InPost's solutions. It summarizes that: 1) Mail volume is declining as electronic communication grows, while e-commerce is increasing rapidly. 2) InPost has launched easyPack 24/7 automated parcel terminals, allowing customers to send and collect parcels 24/7, and the network has grown significantly in its first year. 3) InPost is developing new e-services like e-invoicing, social media shopping pages on Facebook, and mobile payments, to adapt to changing customer demands and market trends.

1. Post-Expo 2010, Copenhagen, 6-8 October 2010
To e- or not to be ?

2.  Introduction
 Postal trends
 E-commerce
 easyPack 24/7
 E-services
To e- or not to be
InPost's solutions for securing incomes growth
Marcin Bosacki
Business Development Manager
Post-Expo 2010, Copenhagen, 6-8 October 2010

3. Introduction to
Integer.pl Capital Group

4. Distribution of
unaddressed mail
market leader in
distribution for supermarket
chains
Postal services
largest alternative postal
operator in Poland
Financial and insurance
services
Offer for business and
individuals
Distribution of UDM in
Ukraine
Services in over 300 cities
Automated parcel
terminals
Sending and collecting
parcels 24/ 7
Logistics services
logistics support to Group’s
subsidiaries
MVNO operator
Services for Carrefour Mova
New services in Autumn 2010
InFlavo
Internet shops on
Facebook
Listening to customer needs and observing
market trends
Post-Expo 2010, Copenhagen, 6-8 October 2010

5. Profitable and growing business
Results (in
thousand PLN)
2005 2006 2007 2008 2009 H1 2010
Net income from
sales
31 507 44 778 62 123 94 945 139 866 94 680
Operating costs 29 215 43 029 58 897 91 045 129 843 87 290
EBIT 2 303 1 826 3 533 8 505 13 206 12 090
Net profit 1 921 1 584 2 751 6 481 10 233 7 390
Post-Expo 2010, Copenhagen, 6-8 October 2010

6. Postal trends

7. Social mail
Transactional
mail
Direct Mail
Parcels
Less mail is being sent
Post-Expo 2010, Copenhagen, 6-8 October 2010

8. Postal market in Europe
 Decline in mail volume by ~5% yearly
 Electronic substitution (emails, e-documents)
 Technology improvements
 Market liberalisation
 Better access to Internet
 Growing importance of e-commerce
 New generation of users - social media
Post-Expo 2010, Copenhagen, 6-8 October 2010

9. E-commerce

10.  Only a few countries with internet penetration above 15%
Internet penetration in 1998
Post-Expo 2010, Copenhagen, 6-8 October 2010

11.  Many countries with internet penetration above 30%
 Some European countries with 70% plus
Internet penetration in 2008
Post-Expo 2010, Copenhagen, 6-8 October 2010

12. Increasing role of e-commerce globally
 25.6% of world population
with access to Internet
IMRWorld
 Double growth in online
retailing % of total (3.2% in
2009 to 7.4% in 2011)
PayPal UK Online Retail Report
 36% growth in e-commerce in
Poland in 2009
Sklepy24.pl
Post-Expo 2010, Copenhagen, 6-8 October 2010

14. Business Concerns
„We need proconsumers solution. We
need to comunicate in direct, innovative
way with. Limiting their engagemant and
maximizing amount of satisfacted users”
„How we can cut our „Last Mile” costs? How
we can offer 24/7 parcel service? Can we
track & trace it?
„We need invest out assets but solution
should be valuable and offer best ROI”
Post-Expo 2010, Copenhagen, 6-8 October 2010

15. Business Concerns
„Most important for me and other my
peers is fast delivery time, on time
delivery and cheap price”
„Reasons to change the operator are
lower prices and better convenience in
picking up the parcels (opening hours and
Point of Sales localizations)”
SIMON KUCHER & PARTNERS
Interviews with customers and e-
shops , January / February 2008
Post-Expo 2010, Copenhagen, 6-8 October 2010

16. easyPack 24/7
 Sending & reciving parcels
 Cash On Delivery
 Passing the goods through
 Paying bills
 On screen Advertising
 Selling goods
 B2B logistics
Accessibility- 24 hours a day 7 days a week
 Deliveries within 2 working days (~24h)
 Safety solution
 Dedicated software with
high flexibility
Post-Expo 2010, Copenhagen, 6-8 October 2010

17. 1 = 10
Post-Expo 2010, Copenhagen, 6-8 October 2010

18. easyPack 24/7 - statistics
 96,7% delivered day after
posting
 38,4% of parcels collected
between 18:00 – 9:00
 50% of parcels collected within 6
hours after leaving it in the
machine
* Source: InPost, data from October ’09 – August ‘10
Post-Expo 2010, Copenhagen, 6-8 October 2010

19. easyPack 24/7 – year ago and now
Start – June 2009
 100 machines – 28 cities
 3 largest e-shops in their segments
(Intymna.pl, Komputronik.pl,
Merlin.pl)
 Insurance up to 5.000 PLN
 Parcel collection
Currently – September 2010
 100 machines – 28 cities
 300 machines in 71 cities
 800 e-shops
 Paneuropean clients: AVON, Allegro
 Insurance up to 20.000 PLN
 Parcel collection
 Postage directly in the machines
 Cash on delivery
Post-Expo 2010, Copenhagen, 6-8 October 2010
 450 machines by end of 2010
 1000 machines by end of 2011

20.  Avatar case study
 Option to pick up parcels withing 60 minutes from the order
Online sale and instant parcel pick up
More can be found on http://www.integer.pl/biuroPrasowe/avatar_has_conquered_paczkomaty_24_7_machines,263.html
Post-Expo 2010, Copenhagen, 6-8 October 2010

22.  Visit our booth at 3142
 Check how quick can you pick up a
parcel
 Become a new Formula 1 driver!
Check how fast are you!
Post-Expo 2010, Copenhagen, 6-8 October 2010
Visit us on booth 3142

23. E-services @ InPost

24. Listening to customer needs and
observing market trends
Hybrid Mail
E-invoicing and Mobile
Payments
MVNO
Paczkomaty 24/7
E-shops on
Facebook
Post-Expo 2010, Copenhagen, 6-8 October 2010

25. Social Media
phenomen
Post-Expo 2010, Copenhagen, 6-8 October 2010

26. Heavy users of FB spend more money on internet
 Heavy users of Internet spend on
average 40 USD more on e-
commerce (comScore, 05.2010)
 56% of Facebook users purchased
something online (ForeSee
Results, 02.2010)
 Facebook – 3rd largest country on
Earth (>500 million users)
Post-Expo 2010, Copenhagen, 6-8 October 2010

27. Social Shopping
Post-Expo 2010, Copenhagen, 6-8 October 2010

28. Growing role of social shopping ?
 Social shopping links both
online shopping and social
media
 Purchasing decisions based on
recommendations
 Grouping sales – latest trend
Post-Expo 2010, Copenhagen, 6-8 October 2010
 70% consumers have better opinion on company or brand after direct
interaction via new media
 64% consumers have betrer opinion on brands who uses social media

29. Social commerce can boost
parcels shipments!
Post-Expo 2010, Copenhagen, 6-8 October 2010

30. Friendly Shopping on Facebook
 Answer to the growing role of
Facebook
 Complete application to have
internet store on Facebook
 Integrated with payments and
delivery options
Post-Expo 2010, Copenhagen, 6-8 October 2010

31. To e- !
Post-Expo 2010, Copenhagen, 6-8 October 2010