Strategy pillars
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Poland

Building on our position, launching new services, and capitalising on synergies

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International

Successful integration of Mondial Relay with UK acceleration and a priority plan for other markets

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New services

Developing new services to drive user stickiness and explore adjacencies

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ESG

Embedding and highlighting ESG throughout our operations

The Group’s strategy is to accelerate the ‘flywheel’ effect to drive sustainable long-term growth.

The Group will seek to achieve this through a combination of:

1. Optimising its existing operations and services,
2. Increasing the population coverage with new APM roll outs, 
3. Driving the adoption of its offering to support a sustainable future, 
4. Expanding internationally through a combination of organic investments and acquisitions and 
5. Introducing additional products and establishing a foothold in the e-grocery market.

In addition, the Group aims to ramp up its fulfilment offering to further enhance its speed of delivery.

Leveraging Data Science to optimise business processes

The Group continues to constantly optimise its daily activities through cooperation with an internal Data Science Hub. As of 31 December 2021, approximately eight million active mobile app users, which is approximately 40% of online shoppers in Poland, the 6th largest e-commerce market in the EU (after Germany, France, Italy, and the Netherlands) with the prospect of becoming the 5th in 2025, and 38,000 merchants use its delivery services.

This year we further expanded monitoring and forecasting capacities enabling us to optimise operations and enhance planning processes. We also use our data to further personalise content, and identify opportunities for cross-sell and up-sell for both existing and new services. We constantly work to improve the parcel’s dwell time in an APM and service quality; iin key areas for Christmas 2021 we fulfilled the most ambitious declaration of delivering 2.5 million parcels by December 22 arriving in time for Christmas. This is in line with our approach of setting the bar higher and higher.

The Group made significant progress in 2021 in terms of unifying reporting and implementing Business Intelligence across countries; the Group aims to further expand the usage of data and further develop new solutions not only for Poland and local markets but for the whole Group. We are working on combining internal sources with external data providers and using bestin-class methods to drive the value of our operations.

Building on our strong position – increasing the serviceable volume and population covered with new ‘whitespace APM’s’ roll out

In 2021 we further improved the population coverage in Poland. Scale and density of the APM network are critical drivers for consumer convenience and operating efficiency. APM network expansion ensures that the Group’s services become increasingly more attractive to endconsumers, which in turn encourages merchants to offer and communicate InPost delivery methods. The Group has a demonstrated track record of successful APM deployment. As of 31 December 2021, 56% of the Polish population was able reach an APM location in seven minutes from their home (walking time). As of 31 December 2021, the Integer Group had more than 1.8 million million lockers in urban areas and more than 0.6 million lockers in rural areas in Poland, where it also sees a large opportunity to increase its presence. In cities we work with municipalities in the InPost Green City programme and put more focus on indoor locations in order to both provide greater convenience and maximise space usage. The roll-out of new APMs is supported by strong data analytics and aimed at optimising the customer experience, which has driven growth in the past; the Group expects that it will continue to do so in the future.

The Group also focuses on increasing the capacity of its already deployed APM network. As extensions are a cost-and-capex-effective way to grow capacity without acquiring new locations, the Integer Group increased the average number of lockers per APM from 139 at the end of 2020 to 148 as at 31 December 2021. Apart from successfully developing multi-parcel delivery, multiple refills and several data-driven initiatives to increase end-user engagement and foster quick pick-up habits, the research and development (‘R&D’) department creates, in collabortion wih our partners, new solutions, such as robotised indoor machines that aim to increase the volume handled on a limited indoor space.

In terms of international markets we utilise our proven know-how, adjusted to the local market conditions, to successfully rollout the APM network. Within less than six months from the Mondial Relay acquisition we managed to deploy over 300 machines in France, as at the end of 2021.

Offering new products and new adjacencies

Meanwhile, we will further capitalise on opportunities to enhance the e-commerce customer experience and attract new users with the simplicity and convenience of our delivery service. To drive this, we will continue to develop the services and products we offer across each of our markets. To improve consumer experience with its delivery service, the Group is constantly developing its mobile app. As at 31 December 2021 InPost Mobile had almost eight million users in Poland. In 2021 pick-up time extension for end-customers and labelless send was introduced in Poland, and labelless returns in the UK. While scaling up weekend deliveries in Poland we provided same-day delivery for free in particular regions for customers’ convenience.

InPost will continue to develop new services, entering new segments to become an end-to-end partner for e-commerce and to provide the best user experience for end-consumers across all markets. New products can be expected within the core delivery services, as well as new areas such as shopping financing services and eco-solutions (with ReZip – reusable packaging being currently tested).

To make the best use of the creativity of InPost employees we are in the process of launching InnovationLab, that will facilitate innovation both coming from within, as well as working with external partners to test new ideas, many of them connected to the green agenda.

InPost Fresh

InPost is changing its position in the market from supporting third parties in particular elements, to being an endto-end provider and running our own process in terms of e-grocery in Poland. In 2021 the e-grocery market size in Poland was around PLN 5b in Poland (Source: Company, Market reports5) reaching around 2% penetration. Due to COVID-19, 31% of e-grocery clients increased their spend, and 50% of those new to e-grocery claim they will continue to shop this way. Doubledigit market growth is expected in the upcoming years.

In 2021 we successfully piloted InPost Fresh with Makro, offering both twohour express and same-day delivery. With a dedicated team from 2022 we will be working on scaling-up InPost Fresh, both in terms of functionality as well as coverage.

We will carry on growing the Fresh Food category, an important value and frequency-driver, but will also investigate other segments. Furthermore we will search for ways to join forces with parcel operations to further drive the profitability of Fresh Food in the near future. The Cleaning Supplies and Animal Feed are the first categories to be added to Fresh Food, and to start with. This will bring profits and open doors for InPost Fresh in Poland. To meet customer expectations and to grow quickly we will introduce new merchants and work on the optimal operational model.

InPost fulfilment

The addressable fulfilment market is expected to reach PLN 4.0b in 2026. Market growth is due to both increasing B2C parcel volumes, as well as a growing willingness to outsource fulfilment. The addressable fulfilment market is dominated by merchants with >1k parcels per month, where fashion, electronics, and beauty are particularly important segments. InPost is redefining its fulfilment strategy to meet the needs of the market.

Based on our research only 34% of merchants surveyed know what thirdparty fulfilment service is, and educating the market is key to our success. From this group around 6% of merchants already outsource fulfilment, but another 28% would consider working with partners that will enable, support and advise on the growth of their businesses, beyond simple fulfilment outsourcing, and we want to be such a partner – an end-to-end e-commerce partner.

In 2021 we continued to increase our share of checkout (the total volume of the Polish Group’s merchants using its delivery services, divided by the volume for which they used its fulfilment services.

International Expansion
Our international activity is directly supporting the overall business vision, and delivering against our key success pillars for each market.

1. Localised product offering (role of the InPost mobile app, definition of products to be determined, working towards D+1, green agenda and local brand), 
2. Retailer and partner coverage (client segmentation, product offering by segment, sales team coverage, pricing management, share of checkout activity, merchant integrations), 
3. Logistics & service quality, 
4. Network coverage (APM network design, PUDO network design, scouting and landlord targets, deployment process, crossborder service).

Our ultimate goal is to push other markets to a similar level of maturity and operational effectiveness as Poland, while recognising and adjusting to local market characteristics. We will also capitalise on the scale and synergies realised from the integration with Mondial Relay to drive crossborder growth.

In order to leverage the merchant relationships already in place, in 2021 we established a dedicated pan-European sales team to strengthen our local, country-focused sales teams. Some of our largest merchants (e.g. Vinted, H&M and Inditex) offer their services in a number of European markets in which we are present, hence our aim is to provide them with a comprehensive account management as well as product offering. The initiative is already proving successful with an international deal with Vinted, one of our largest merchants.

ESG

ESG will also play a fundamental role in our development. We have created a new ESG strategy which is being embedded across the Group at every level and is a key component of our business model. It incorporates trends in e-commerce, the risks and opportunities identified for the company, and areas where a more structured approach is required from stakeholders. The strategy links to the United Nations Sustainable Goals (SDGs) to create a robust, comprehensive foundation on which to apply the best practices in sustainable business practices.

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Out of the box

InPost delivers great convenience and superior customer experience to consumers, which drives usage and adoption and consequently the demand for more APMs and PUDO services. As the Group continues to expand its network of solutions, and increase the density of its offering, its services become increasingly more attractive for consumers. As adoption grows, so do volumes, driving better unit economics and cash flow for InPost, allowing it to accelerate its rollout of APMs and PUDO solutions, which in turn leads to greater convenience for both consumers and merchants. The flywheel, therefore, creates a continuous cycle, which has accelerated the Group’s growth and will continue to do so while offering a greener solution for e-commerce. We believe we will be a beneficiary of the long-term growth in the e-commerce of consumables tailwinds, with InPost operations in the UK and Italy already seeing positive growth. With the acquisition of Mondial Relay, InPost now has a presence in three of the top four largest e-commerce markets in Europe.
 

Success factors for our strategy
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The strong InPost brand
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Innovation culture
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Keeping the pace and agility
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Continuous operational improvement
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Strong data usage and best-in-class mobile applications
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Efficient collaboration and communication across markets
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Nurturing talent and appreciating people who are the core value of InPost
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Creating sustainable value for the shareholders with profitability above industry levels
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ESG strategy integrated with business strategy