CROSSING BORDERS __________________________________

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What can we do in a changing world ?(Cooperation with non postal players and steps to d evelop platforms )

Levente Laszlo, Magyar PostaBrussels, 18-19 Oct. 2011

� Briefly about Magyar Posta and International Business Unit

� Briefly about the changing habits of our customers

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� What we have learned – case study

� On the road to be better …. ?

Letter mail items

CEP items Financial –cash

payments

Financial bank /

insurance

Periodical items

Retail good sales

International services

� Magyar Posta – Factsheet, 2010

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Turnover 2010 (million HUF)

85, 311 45, 989 8 ,995 12, 058 5 ,489 6, 4597, 608

� International Business Unit - Factsheet 2010

Outbound letter items, 2010� Orig HU = 9,9 million pc.� Complex = 16,5 million pc.

241 570,47

331 690,70

633 680,64

585 321,99 567 727,84

718 096,15

0,00

100 000,00

200 000,00

300 000,00

400 000,00

500 000,00

600 000,00

700 000,00

800 000,00

2 008 2 009 2 010

Kimen ı komplex és alap súly (kg) 2008 - 2010

Remailing Alap 200 000

Kimen ı csomag és EMS küldemény (db) 2005-2010

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Remailing Alap

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

2 005 2 006 2 007 2 008 2 009 2 010

Outbound CEP items, 2010� parcels = 58 528 pc� EMS = 22 768 pc

� Complex = 103 516 pc (only

into Romania)

� Budapest HUB – the regional access point

The regional HUB offers:

� „point of entry” for all the customers outside of EU and from oversea (CN, US, etc.)

� Regional distribution service� Customs clearance

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� Strategic location of Hungary on the EU Corridor-Ne t

To Ukraine• Lviv • Kiev

Towards Russia and Asia

Corridor 5To Germany:• Dresden• Nuremberg

To Northern Sea ports

Corridor 4

Corridor 7

River Danube:

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River Danube:

From Southern Germany...

Corridor 5

To Adrian ports • Koper• Rijeka• Ploce

Corridor 7

... to the Black Sea

Corridor 4

To Black Sea ports• Istanbul• Constanta

Corridor 10To Aegean Sea Ports

� Hungary and CEE market size

An average of 60-75% of the population is living in urban areas.

COUNTRY POPULATION

Bulgaria 7’700’000

Czech Republic 10’200’000

Hungary 10’000’000

Poland 38’200’000

Romania 23’700’000

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Slovakia 5’400’000

Slovenia 1’990’000

TOTAL 95’190’000

source: Study from PriceWaterHouseCooper, 2008

� Changing world = Changing habits

DO YOU KNOW YOUR CUSTOMERSHABITS?

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HABITS?

� Internet – Factsheet, 2010

� 1.966.514.816 internet connections � 14% increase 2010 vs. 2009� 255 million homepages � 21,4 million new homepages in

2010

� 2,9 billion email addresses� 107 trillion sent email

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� 107 trillion sent email � 294 billion email / day

� 600 million Facebook-members� 250 million new members in 2010� 30 billion Facebook datafiles� 175 miliion Twitter-members

� Internet users, 2010 (million pers.)

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� CEE - Internet penetration increase 2010 vs. 2009 (% )

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� CEE - Internet users increase 2009 – 2010 (%)

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� It seems that we have a problem …

� Traditional letter mail is no longer sexy for the young generation

our competitors + electronic media =are knocking on our door !

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generation

� Traditional parcel service is no longer sexy for our customers

� How to remain attractive ?

� Business Model - Multilevel cooperation

PARTNERSVALUE

PROPOSITION CUSTOMER

Relationship Activities

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Sales ChannelResources

cost income

Margin

� Magyar Posta „all inclusive e-commerce” business mode l

1 Distribution of unaddressed items

2

4

5Distribution of addressed items

COD

Reverse Logistics Management

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.

3

Management

Distribution of parcel items

6 Reports

� Business model - Case Study

INFRASTRUCTUREVALUE

PROPOSALTARGET GROUP

PARTNER

SERVICE RELATIONSHIP

CUSTOMER

RESOURCES SALES CHANNEL

BONPRIX

KAM

International

Posta RomanaDPD RomaniaPost Master

- Leaflet distrib.- DM distrib.- Parcel distrib.- COD collection - reports

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FINANCIALS

COST-STRUCTURE INCOME-FLOWCost of the

subcontractors

Income linked to the offered

services

� Reverse Logistics Solution - Romania

� Posta Romana > 7,000 outlets

� Pick up and delivery to Magyar Posta HUB in Cluj

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� Collection and transport to Budapest HUB

� The operational process (parcels)

Distance Seller

Magyar Posta Deliveringoperator

End Customer

xml file

Parcels are delivered from Poland for distribution (last mile) intoRomania. All items are with COD and tracked E2E.

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xml filePayment Report

Comment:->24-48 h preadvice / database-xml file->Magyar Posta processing the xml-file->Magyar Posta sends the output-file to

the subcontractor with 24 h before shipment

� Before (relabeling at MP’s Intl’ Office of Exchange)

Customer

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Magyar Posta FTP

Relabeling Subcontractor

Shipment to the subcontractor

� After (labeling at customer’s warehouse)

Customer

Receiver

� New (outsourced) solution for offering direct labelling + shipment, but keeping the full control

� Next step – buildingplatform using the existing digital technology

20202020

Magyar Posta FTP

Subcontractor

Receiver

� Hungary – expectation for 2012 on-line spend

Forecast is 160-165 mrdHUF for 2011

� On-line spend has reached by the end of 2010, EUR 450 million

Aprox.1,5 million transactions in 2010

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Source: GKIeNET

Increase of 25% dispatethe downturn

� Romania – expectation for 2012

� 6% from the Romanian population is expected to buy online in 2012

� 1,2 million transactions

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� 1,2 million transactions

� 1,2 million parcels (incl. International as well)

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� Focus on platforms

clear strategy

new markets + new customers

Value for money(profitability)

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quality + pricing

(profitability)

new business models

� Thank you for your attention !

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