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    Integer.pl Group - IQ 2013 results

    Press release                                                                                                                                                                                                                            Cracow, May 16th 2013

     

    Integer.pl Group – IQ 2013 results

     

    Integer.pl Group – the leading Polish postal group, an independent financial and insurance operator, and the owner of the global easypack by InPost network, demonstrated PLN 83m in consolidated revenues after the first quarter of 2013, which indicates an increase by 9.6% in comparison with the analogous period of 2012. Net profit amounted to PLN 5.69m. the consolidated earnings per share (of Integer.pl) reached the level of PLN 1.29.

     

     

    Net profitability of the Integer.pl Group reached 6.85% in the first quarter of 2013. Simultaneously, Group has generated PLN 5.16 m of operating profit. Consolidated EBITDA amounted to PLN 10.98mand increased by 4.7% in comparison with the analogous period of the previous year.

     

     

    The company’s strong market position has been confirmed by the 7th position (in comparison with the 16th in 2011, and 277th in 2010) in the Puls Biznesu ranking of the “WSE Listed company of 2012”. At the same time Integer.pl came in second position in the ranking of the most successful companies in 2012, as well as win third position in the “prospects for development” category.

     

    „The first quarter 2013 was extremely active for us as far as the business matters are concerned. We managed to finalize our contracts with LINK4 and Generali T.U. SA, which are very important for our future development. Thus, now we are present in the insurance sector. This is just the beginning of our expansion on that market, nevertheless it may significantly affect our revenues in a long term perspective. Currently, we are focusing on the easyPack by InPost expansion in Poland and abroad. The first quarter 2013 we spent on searching for some new locations for the devices. At that time we managed to deploy about 500 new machines, while in a globally we focus our efforts on deploying another 3.5 easyPack machines in 2013. the investment is estimated at around 70meuros”, says Rafał Brzoska, CEO of the Integer.pl Group.

     

    In the first quarter 2013, the Integer.pl Group focused mainly - apart from expanding range of activities in the postal, financial and insurance sectors - on the international expansion of the easyPack network. In January 2013, the company signed a contract with Sequoia Group, and therefore still in the IIIQ 2013 100 easyPack machines will be deployed in Brazil within the implementation of the first phase of the contract. Ultimately, the Brazilians will use up to 500 devices to send and receive shipments. In March 2013 the Integer.pl Group launched its activities in Ukraine which assumes the implementation up to 250 easyPackmachines in the coming years. At the same time the Group has signed an exclusive contract with IN TIME, the Slovak number two in the B2C sector. Thanks to it, all machines in Slovakiawill be commercially available to a company belonging to the Austrian post, providing the Group with a regular income from the rental of the locker boxes and secure the network maintenance costs since the moment of service implementation onto the Slovak market.

     

    In addition to Brazil, Ukraine and Slovakia, the Integer.pl Group, after the preparation and pilot projects implemented in the first quarter of 2013 – launched the easyPack machines onto the UK market. easyPack commercial launch in the UK at the end of April 2013 initiated a new sales strategy regarding the easyPack machines. The combined business model - based on open collaboration with partners, combined with an active own sales- will be continued on the markets where the network will be developed. The plans for 2013 include - except the UK - France, Hungary, Turkey, Norway and Sweden, and the overall investment in the network expansion are estimated to be up to one billion euros. In addition, over the next two years easyPack by InPost may also be accessible in the Americas, and later also in Asia. The whole project may eventually reach up to 1 billion euros.

     

    In IQ 2013 the Company has announced the launch of modular machines of the 5th generation fully integrated with the NCR cash machines, a world leader in the production of ATMs and self-service devices – that combine existing functionality in the 24/7 sending and receiving parcels with financial services. As a result, users gain the ability to use the easyPack machine directly via the ATM interface. This will not only ease and speed up the parcel reception, but also provide the service payment and cash withdrawal at the same cash machine.

     

    Simultaneously, the Integer.pl group is engaged in operational and pilot project aim at the implementation of the automated postal terminals onto the European markets. Those machines combine the functionalities of parcel, letter, and cash machines, and in the future they may replace traditional post offices. The group has already invested PLN 5m to prepare the prototype.

     

    Integer.pl group plans for 2013-2016

    Increase in the market share of postal and courier services to 20% by the end of 2013

    • The increase in sales of postal services in Poland, in the context of the full liberalization of the postal market, which took place on 1 January 2013

                 - Gaining new contracts since the market is fully liberalized, especially with public institutions as well as new business partners

                 - In IV Q 2012, an active participation in about 30 tenders valued at approximately PLN 140m

                 - The planned increase in sales of high-margin services, such as registered and express letters, and money transfers

    • An increase in number of mail delivered from 1.25 in 2006, and 200m in 2012, up to a threshold of 250m of mail items in 2013
    • The development and expansion of portfolio of Power Post /hybrid mail service/, combining the traditional postal services with an electronic mail functionalities
    • By the end of 2013, opening of about 1700 Customer Service Points, thus in December 2013, the Group plans to manage a network of 2600 offices, providing its services for individual customers in 750 localities (200 new places compared to 2012),
    • (2.000 new places compared to 2012) 

    The commercial international launch of services based on the automatic postal terminals, planned for the2nd half of 2013:

    • Pilotage on foreign markets in the first half of 2013 - an estimated cost of 700 thousand euros

    The consistent building a market leading position in the e-commerce sector,including the development of easypackby InPost service in Poland:

    • Launching of another 350 devices to build a network of 1100 machines in Poland by the end of 2013

    International expansion of easyPack by InPost machines:

    • By the end of 2016, the Group plans to launch 16000 easypack machines throughout Europe in cooperation foreign partners and with PineBridge Investments, a global private equity fund (as the EasyPack, the joint venture company)

                 - In 2013 the Group plans to deploy about 3.5 thousand new easyPack machines in: the UK, France, Hungary, Turkey, Norway and Sweden. Finland,                        Denmark, the Netherlands and Switzerland are also taken into consideration

                 - In 2014 and 2015 there will be another 2.5 easyPack machines deployed in some of theEuropean countries

                 - In 2016 another 3 thousand machines will be deployed

                 - Additionally, there are 4 thousand machines to be deployed if needed

    More plans of the Integer.pl Group for 2013:

    • Dynamic development of Inpost Finanse, operating in financial and insurance sector:

                 - Implementation of current contract and gaining the new ones with the institutions representing the public sector

                 - Enlargement product portfolio with the insurance services - thanks to the cooperation with LINK4 and Generali Group

                 - Increased sales of financial services in the InPost Customer Service Points, launching new agencies and franchise branches in other Polish cities

                 - Implementation and development of mobile payments and outsourcing of e-documents, aiming at the increase of clients served

    • Development of business activities in Ukraine based on Integer.ua company in terms of distribution of unaddressed mail and easyPack by InPost service
     

    For more information about Integer.pl Group, visit: www.integer.plwww.inpost.plwww.paczkomaty.plwww.mobilneplatnosci.pl and blog.inpost.pl/.