easyPack 24/7: case study from Poland

on last-mile delivery options

Łukasz Nowiński

Managing Director

InPost

Company overview

How did we start?

Developing the service in Poland

Expansion to other countries

Agenda

Listening to customers’ needs and

observing market trends

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 businesses and

individuals

Distribution of UDM in

Ukraine Services in over 300cities

Automated parcel

terminals

Sending and collecting

parcels 24/ 7

Logistics services

logistics support to Group’s

subsidiaries

MVNO operator

Services for Carrefour Mova

and new service Freem

launched in Autumn 2010

InFlavo

Internet shops on

Facebook

Listed on the Warsaw Stock Exchange

The largest private postal group

in Poland

World Mail Awards winner

Growth (2010),

Innovation (2011)

e-comerce (2011)

Business culture and Performance

reflected in earnings and recognised by

investors

InPost – wavemaker from Poland

2011

Integer.pl – financial results

Results (in

thousand EUR) 2005 2006 2007 2008 2009 2010 H1 2011

Net sales 7252 10307 14299 21854 32194 46625 26599

Operating costs 6725 9904 13557 20956 29887 42950 24308

EBIT 530 420 813 1958 3040 4836 3241

Net profit 442 365 633 1492 2355 3802 2663

Source: own data. Currency exchange from 13.09.11 – 1 PLN = 0,230175 EUR

Growth potential for e-commerce in

poland

Year 2009

48 152 328980

1300

2000

3470

4530

60 180 410921

1800

3000

4600

6480

2001 2002 2003 2004 2005 2006 2007 2008

Wartość polskiego rynku e-commerce (w mln zł)

Sklepy internetowe Platformy aukcyjne

36.4% growth of e-commerce

between 2008 / 2007

7,000 active e-retailers

6.9 mln Poles did online shopping

Bright future for e-commerce

globally

19% growth of e-commerce per year

Source: Invesp

Year 2011

Parcel terminal answering needs

of customers

Important factors for customers:

Speed of delivery

Low price

Easy ways for parcel collection

No focus on B2C customers

Bad quality postal services vs expensive

couriers

A few APT providers – all very expensive

Decision to do it on

our own

Year 2009

420 machines in Poland

Self-service pick-up points for

collecting and sending parcels

SMS / email notification about the

parcel in the machine

User and producer of the machines

Machines already contracted to 9

countries: Estonia, Cyprus, Czech

Republic Lithuania, Latvia, Russia,

Slovakia, Spain, Ukraine

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

Year 2011

How it works

Additional functions of easyPack by InPost:

Credit card/cash acceptors

Returns based on barcodes

Sending of parcels directly from terminal

What we achieved in 2 years

420 machines in over 100 cities in Poland

8 countries contracted in 2011 … more to

come

Over 500 active e-retailers

New segments – MLM, return logistcs etc

Customer database:

>200.000 fans on Facebook

>300.000 customers used the service

(registered and non-registered users)

61% clients used easyPack 24/7 again

easyPack operating markets usage data

74% prefer easyPack vs

courier delivery

51% parcels collected

within 6 hours

17 sec average time

needed to pick up a

parcel

97% of parcels

delivered next day

Source: CATI research 1Q 2011 Polish market, research sample 600 buyers, & own data

37.45% - collection between 18:00 – 8:00

77% of customers have easyPack

within 10km

Source: Own data collected from registered users

„Last mile” costs cut by 80%

Where to locate easyPack machines?

How to convince shops and business partners to offer the service?

How to attract customers?

How to track customers behaviour and stimulate frequency?

What may go wrong and how to avoid pitfals?

… We know how to make it work

What needs are satisfied?

Cheap and convenient delivery (Cheapest service – saving money)

But the most important are COMFORT and CONFIDENCE

Fastest option - 97% delivering day after posting

Availability - 24h access

Innovative service + modern solutions = unique experience

Comfort - „just when I want it and how I need it”

Security - Parcels are fully safe

No queues - saving time – average time of collecting a parcel is 17

seconds

16

Customers talk 17

56% growth of easyPack deliveries

Paatal.pl customers soft roll out

56% growth of easyPack delivery after the

promotion (lack of materials for analysis before

the promotion- new shop)

During action percentage easyPack relative to

other delivery option is 18% and after action 23%.

Communication channels:

On-line activities: banners + subpage

E-mailings

Posts and graphics on facebook.com/paczkomaty

E-mailing statistics:

Database 97 463

Unique opens 18 499 – 18%

Unique click 274 – 0,2 %

Results:

over 127 participants received a special gift-

product

Groupon sales up to 97% products via easyPack!

Communication channels

Standard daily e-mailings of Groupon

On-line activities: banners + subpage

Groupon application for iPhone

Delivery options:

UPS

easyPack by InPost

Results:

Depending on the product that is offered

delivery option via easyPack goes from

37% up to 97%

Average share of deliveries to easyPack

75%

We do have clients and we ……………

make profit on it

The world’s most chosen vendor in 2010

26-month Return on

Investment

4-month Time to market

Second largest

network globally

18 000 easyPack by 2016

„If I had to guess, social commerce is the next to

blow up” – Marc Zuckerberg, CEO of Facebook

E-commerce Facebook

commerce

Mobile

commerce

MVNO – free access

to internet via phone easyPack 24/7 E-shops on

Facebook

Thank you for your attention

visit our stand no 4073

Łukasz Nowiński

Managing Director