577 million PLN revenue in 2015 thanks to strong growth in sales for e-commerce and the successful launch of the InPost Courier service

Sebastian Anioł, CEO of the InPost Group: "2015 was a very important year for the InPost Group and set further directions for expansion and development. First of all, InPost's stock exchange debut took place. The second very important event was the launch of the logistics service of courier services, which are breaking records in popularity. In addition, in 2015, dedicated solutions for the Allegro platform were successfully developed - 'Allegro InPost Polecony', 'Allegro Paczkomaty® InPost', a new logistically supported service by InPost SA was introduced ' Allegro Courier InPost', we also continue to work on the development of multi-channel delivery. We have also launched another new service - E-commerce Polecony InPost - dedicated to online shop customers. In addition to this, we completed the implementation of the EPO system, which is now operational nationwide. All these activities have been appreciated by the market and customers and have had a significant impact on increasing revenues from the e-commerce sector."

Three months ended 31 December 2015.

Three months ended 31 December 2014.

Change

Revenue in million PLN

167,0

134,8

+ 24%

EBITDA

6,6

13,4

- 51%

EBITDA margin

4,0%

9,9%

- 5.9 pp

Zysk net

-0,2

9,5

- 103%

In 2015, the Group recorded a 27% increase in the number of parcels across all sales channels (to 368 million), compared to 2014. The highest growth rate - 83% - was recorded in the Paczkomaty® InPost sector (12.9 million parcels delivered), while registered letters - including Allegro - recorded a 36% year-on-year increase. In 2015, the Group focused primarily on expanding its broad offering for the e-commerce market. A courier service was introduced, which has already handled 3.2 million parcels in its first seven months of operation. The success of this service is evidenced by the fact that such a level of volumes was achieved by comparable courier companies in the past after seven to eight years of operation, and week-on-week growth is maintained at a level of several to tens of per cent.

"At the beginning of 2016, we implemented the Dynamic Redirection service, which gives you the opportunity to change your InPost courier parcel collection location for free - your designated InPost Parcel Machine® or Customer Service Point, which fits perfectly with our multi-channel delivery strategy and optimisation.

We continue to expand our offering and focus on the promising e-commerce sector. In our view, this sector currently has the best growth prospects in the Polish market and as such is a potential source of increasing the company's sales value in the coming quarters as well."

The network of Paczkomaty® under the InPost brand belongs to the easyPack company of the Integer.pl Group. InPost's Paczkomaty® in Poland are logistically operated by InPost S.A. - a company of the Integer.pl Group, listed on the Warsaw Stock Exchange since October 2015.

• InPost Group revenues in 2015 amounted to PLN 577 million, up 30%. In Q4 alone, revenues amounted to PLN 168 million after a 24% increase. Key to the revenues was the very high growth rate of full-year sales of services to the e-commerce sector at 270% y-o-y and the good start of courier services, which reached revenues of PLN 53 million at the end of the year.
• Significant revenue growth was also recorded by the SME sector, which saw a 21% improvement, while revenue from the public sector as a whole showed higher growth than revenue from the SiP contract alone - up 17% and 6% respectively.
• EBITDA amounted to PLN 32 million for the year as a whole after a 12% increase, while in Q4 it reached PLN 7 million (down 49%). The increase in 2015 was achieved despite the negative impact of the valuation of the asset from the contract for the service of Courts and Prosecutor's Offices in the amount of PLN 13 million (compared to the positive impact of the recognition of this asset of PLN 19 million in 2014) and the first months of operation of the courier service, which charged PLN 1.2 million to the result. The courier service started to have a positive impact on EBITDA already in the fourth quarter.
• The company continues to maintain strong growth in deliveries to InPost's Parcel Machines®, which reached 12.9 million units in 2015, following an increase of 83%.
• The volume of parcels handled grew steadily: the company ended the year with 368 million parcels handled, an increase of 27%.