InPost - financial results for 2020 and forecast for 2021

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30 March 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.

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

MPLN, unless otherwise specified	FY 2020A	FY2021E	FY2020A (pro-forma) [2]	FY 2021E (pro-forma) [3]
Number of devices	12,254	16.5-18.5 thousand.	12,254	16.5-18.5 thousand.
Volume of packages (in millions)	310	445-465	441	615-645
Revenue	2,532	3,460-3,610	4,498	5,665-5,910
Adjusted EBITDA margin	39.7%	Low 40%	28.3%	Low 30%
Investment expenditure	537	700-745	609	850-945
Cash conversion	38%	Average 40% [4]	43.8% [5]	Average 40% [6]

Segment Poland

	Financial year 2020A	Financial year 2021E
Number of devices (#)	10776	14,500-15,500
Volume/increase in the number of Parcel Post® InPost shipments	247.2 million	45-50% r / r
Volume / increase in number courier deliveries	60.6 million	25-30% r / r
Parcel machine - revenue/growth	PLN 1815.3 million	40-45% r / r
Home deliveries - revenue/growth	PLN 634.9 million	25-30% r / r
Adjusted EBITDA margin	41,7%	43-45%
Investment expenditure	PLN 509.1 million	PLN 600-625 million

	Financial year 2020A	Financial year 2021E (pro forma) [7]
Number of devices (#)	1478	2000-3000
Volume of shipments	2.2 million	180-195 million
Total revenues - foreign markets	PLN 17.7 million	2260-2380 million
Adjusted EBITDA margin	(249%)	Several
Investment expenditure	PLN 27.4 million	PLN 250-320 million

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
Revenue	2532,1	1242,6	104%
Including: Poland	2514,4	1235,6	103%
Including: Foreign markets	17,7	7,0	153%
EBITDA	994,3	350,1	184%
Including: Poland	1038,4	375,6	176%
Including: Foreign markets	(44,1)	(25,5)
EBITDA margin	39,3%	28,2%	+ 1110 bp
Adjusted EBITDA [8]	1004,4	351,8	186%
Including: Poland	1048,5	377,3	178%
Including: International	(44,1)	(25,5)
Adjusted EBITDA margin	39,7%	28,3%	+ 1140 bp
Investment expenditure	536,5	319,7	68%
% of revenue	21,2%	25,7%
Free cash flow (FCF) [9]	379,8	34,9	988%
Cash conversion [10]	38%	10%
Net leverage [11]	2,4x	2,2x

	Financial year 2020	Financial year 2019	Year-on-year growth
Number of devices	12254	8352	47%
Poland	10776	7186	50%
International

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%

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
Poland	2514,4	1235,6	103%
The Parcel Machine® segment	1815,3	776,4	134%
Courier delivery segment	634,9	420,1	51%
Inne	66,8	71,4	(6)%
Inter-segment elimination	(2,7)	(32,3)
Foreign markets	17,7	7,0	153%
TOTAL	2532,1	1242,6	104%

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
Poland	1333,0	560,1	138%
Gross margin (%)	53,0%	45,3%	1,230 bp
Parcel Machine® segment	1074,0	418,9	156%
Gross margin (%)	59,2%	54,0%	520 bp
Courier delivery segment	198,3	106,6	86%
Gross margin (%)	31,2%	25,4%	580 bp
Inne [12]	62,1	50,2	24%
Inter-segment elimination [13]	(1,4)	(15,6)
Foreign markets	(9,8)	(7,4)
Gross margin (%)	(55,4%)	(105,7%)
TOTAL	1323,2	552,7	139%
*Gross margin (%)*	*52,3%*	*44,5%*	*780 bp*

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
Poland	1038,4	375,6	176%
EBITDA margin (%)	41,3%	30,4%	1090 bp
Foreign markets	(44,1)	(25,5)	irrelevant
EBITDA margin (%)	irrelevant	irrelevant
TOTAL	994,3	350,1	184%
*EBITDA margin (%)*	*39,3%*	*28,2%*

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
EBITDA	994,3	350,1	184%
Changes in working capital	(78,0)	4,5
Free cash flow from operating activities [14]	916,3	354,6	153%
CAPEX	(536,5)	(319,7)	68%
Free cash flow (FCF)	379,8	34,9	988%
Free cash flow conversion factor [15]	38%	10%

MPLN, unless otherwise specified	Financial year 2020	Financial year 2019	Year-on-year growth
Pro-forma debt	2535,1	894,9	183%
Cash and cash equivalents	139,4	113,0	24%
Net pro-forma debt [16]	2395,7	781,9	206%
Pro-forma net leverage [17]	2,4x	2,2x

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

[1] The pro-forma financial information is based on the consolidated financial information of InPost SA and Integer.pl, taking into account the "Reorganisation and Refinancing Transactions" that took place in January 2021 as described in the IPO Prospectus

[2] 6,17,21,22 Assumes full year contribution of Mondial Relay for 2021

18,19, 20 Defined as Adjusted EBITDA – Change in Net Working Capital – Maintenance and Expansion Capex. Before IFRS-16 lease payments)/Adjusted EBITDA

18 Assumes full year pro-forma impact of Mondial Relay for 2021

[8] Defined as EBITDA adjusted for share-based payments under IFRS2

[9] Defined as EBITDA - change in net working capital - maintenance and expansion capital expenditure, before lease payments under IFRS-16

[10] Defined as EBITDA - change in net working capital - maintenance and expansion capital expenditure, before lease payments under IFRS-16 / EBITDA level

[11] Defined as pro-forma net debt ÷ EBITDA

[12] Others mainly include the manufacture and sale of Parcel Machines (to third parties) and marketing and IT services (to third parties)

[13] Inter-segment transactions are eliminated on consolidation and reflected in the "inter-segment elimination" line.

[14] Defined as EBITDA level adjusted for changes in Working Capital

[15] Defined as EBITDA level - change in net working capital - maintenance and expansion capital expenditure. (before IFRS-16 lease instalments) / EBITDA level

[16] The pro-forma financial information is based on the consolidated financial information of InPost SA and Integer.pl, taking into account the "Reorganisation and Refinancing Transactions" that took place in January 2021 as described in the IPO Prospectus

[17] Defined as pro-forma net debt ÷ EBITDA level

Don't have the InPost Mobile app yet? Download it now!

Life is easier with the InPost app. Send parcels faster than ever before with the remote locker opening and label-free shipping features. Save time with the app!

Don't have the InPost Mobile app yet? Download it now!

Life is easier with the InPost app. Send parcels faster than ever before with the remote locker opening and label-free shipping features. Save time with the app!

InPost - financial results for 2020 and forecast for 2021

Revenues increased by more than 100%

Outlook 2021

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

Revenue and other operating income

Zysk gross

EBITDA

Summary of cash flow and investment expenditure

Bilans