InPost - financial results for 2020 and forecast for 2021

Revenues increased by more than 100%

InPost - a leader among e-commerce delivery platforms in Europe - has published its financial results for 2020. Revenues increased by 104% to PLN 2.53 billion, EBITDA by 184% to PLN 994 million, EBITDA margin increased by ~1,100 bps to 39.3% and adjusted EBITDA increased by 186% to PLN 1.00 billion. During the period, capital expenditure increased by 68% to PLN 537m and free cash flow increased tenfold to PLN 380m. The company ended the year with pro-forma net leverage of 2.4x [1] .

In 2020, InPost increased the volume of parcels by 115% to 310 million, and the network of Paczkomat® devices increased by 47% to 12,254 machines. The total number of boxes in Poland increased by 78%, to almost 1.5 million, a system of contactless collection from Devices and label-free returns was implemented - thanks to the revolutionary InPost Mobile app, which already has 6 million users. InPost pursued an accelerated international expansion strategy, with volume growth in the UK of 400% in Q4 2020 (year-on-year).

"The COVID-19 pandemic accelerated the structural change towards a digital economy - thus InPost had a great year in 2020. We took many measures to strengthen our pan-European growth strategy and achieved excellent financial results. Revenues more than doubled, adjusted EBITDA exceeded PLN 1 billion and free cash flow increased tenfold, while we continued to increase investments in Poland and the UK. The number of shipments more than doubled, the number of devices also grew rapidly and we introduced numerous innovations - such as our mobile app, contactless parcel collection and label-free returns. This remarkable dynamic has continued into the beginning of 2021, hence we assume further significant growth. InPost's Paczkomat® devices are the most environmentally friendly form of delivery - in one year we reduced CO2 emissions compared to traditional forms of delivery by 180,000 tonnes, while reducing traffic and noise levels. In response to COVID-19's many challenges for our communities, InPost Parcel Machines® have quickly become the safest form of parcel collection for tens of millions of consumers - thanks to remote box opening. Since the beginning of 2021, we have also achieved two important milestones. Firstly, a successful listing on EURONEXT Amsterdam and the successful completion of the largest ever IPO of a Polish company on the European capital market. Secondly, we announced the planned acquisition of Mondial Relay - which will accelerate our international expansion, providing a presence in one of the largest ecommerce markets in Europe. Combined with rapid growth in the UK, we will be Europe's leading ecommerce delivery platform for collecting parcels beyond the recipient's address. I would especially like to thank our employees for their dedication and passion, as well as our customers, partners and investors for their continued support. Thanks to our joint efforts and clear mission, we look to the future with optimism." - underlines Rafał Brzoska, CEO of InPost

In January 2020, InPost successfully completed its IPO and began trading on the EURONEXT Amsterdam exchange under the symbol "INPST" . Due to strong investor interest, subscriptions for the shares were shortened. The total issued and outstanding share capital consists of 500,000,000 ordinary shares. The number of ordinary shares in the offer including the full exercise of the Over-allotment Option was 201,250,000, representing 40.3% of the total number of shares.

InPost plans to acquire Mondial Relay, a leading French e-commerce parcel delivery platform, for around €565 million (approximately PLN 2.6 billion). In this way, InPost will significantly expand its scope of operations, accelerating its international growth and strengthening its position as a leading player in the European e-commerce delivery market. The transaction will be finalised after receiving the opinion of Mondial Relay's works council and subject to regulatory approval. Bridge financing for the transaction over a period of 365 days will be provided by a syndicate of seven banks. The company expects to close the transaction by the end of the second quarter of 2021. In the 12 months of 2020, Mondial Relay generated sales revenues of €437 million and generated approximately €60 million in EBITDA.

Outlook 2021

The forecasts for the international segment include the pro-forma impact of the planned acquisition of Mondial Relay.

Inpost S.A. Group. (including the expected pro-forma impact from the acquisition of Mondial Relay)

Segment Poland

International segment (including the expected pro-forma impact of the acquisition of Mondial Relay)

Financial and operational review for financial year 2020

Parcel Machine® and parcel volumes

1478

1166

27%

Total volume of parcels (in millions)

310,0

144,0

115%

Delivery to appliances - Poland

247,2

103,1

140%

Courier deliveries

60,5

40,4

50%

Foreign markets

2,2

0,5

340%

Revenue and other operating income

Zysk gross

EBITDA

Summary of cash flow and investment expenditure

Bilans

InPost S.A ("InPost") is a leading delivery platform for e-commerce. Founded in 1999 by Rafal Brzoska in Poland, InPost has a network of Paczkomat® machines in Poland, the UK and Italy, and provides courier and fullfilment services to e-commerce merchants in Poland. In 2020, InPost processed 249 million parcels through Paczkomat® machines, working with more than 26,000 e-tailers. Strategically positioned in the fast-growing e-commerce ecosystem, it benefits from favourable market trends - allowing it to rapidly deploy new machines. InPost's Paczkomat® machines provide consumers with a cheaper, flexible, convenient, environmentally friendly and contactless delivery option. In this way, InPost creates the most environmentally friendly delivery solution for e-commerce - delivery to the machines reduces CO2 emissions by two-thirds compared to courier deliveries in urban areas and by as much as 90% in rural areas. In addition, it reduces congestion and provides a more convenient solution for delivering parcels to consumers 24 hours a day, 7 days a week and without having to wait at home. A highly efficient IT infrastructure and rapid deployment of new technologies underpin InPost's operations and growth. InPost's mobile application 'InPost Mobile' is one of the most popular applications in Poland with 6 million active users.

For more information visit: inpost.co.uk ; www.inpost.eu