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    fax 12 619 98 01 Group - results for Q1 2013

    Press release                                                                                                                                                                                                                      Cracow, August 30th, 2013

  Group - results for Q1 2013

  Group - the second largest postal group in Poland, an independent financial and insurance operator and the owner of an international network of revolutionary easyPack by InPost machines - developed in the first half of 2013, PLN154.48 million of consolidated revenue, an increase of 16.88% compared to the same period last year. The company reported PLN10.06 million of consolidated net profit.


    Consolidated EBITDA amounted to PLN21.87 m, while EBIT operating profit PLN9.42 m. The shortfall relative to the first half of 2012 results from the one-off sale of the subsidiary Kolportaż Rzetelny Sp. z o.o. in 2012. The value of the transaction amounted to PLN44 m (11.3 million euros).


    The cost of the international expansion of easyPack by InPost machines have significantly affected the result of Group in the first half of 2013. According to the Group, the first revenues and profits from the country where the company started its activity, will appear after approximately 12 months. The monthly breakeven should be achieved at the end of 2014.



    - In 2013, we launched the largest international expansion of easyPack machines in the Group's history. We have already launched our network in Slovakia, the Czech Republic and the UK. By the end of April 2014 there be nearly 2000 easyPack machines in the UK. We are also running parallel activities in 15 new countries, planning to acquire approximately 6,000 locations for another devices still this year. Furthermore, We are intensively preparing ourselves to enter the world's biggest markets - China and the United States. Of course, we realize that the effects of these activities will be visible over some time - at a time when our revolutionary devices will reach the expected breakeven. However, we want to accelerate the process of foreign offensive noticing extremely high growth in global e-commerce. The e-Commerce activities worldwide reported average annual growth of 18% over the last three years. easyPacks by InPost is the future of online sales, therefore the effect of being the leader we consider to be a key point of our strategy - said Rafał Brzoska, CEO of Group.


    Key events in the 1Q 2013:
    • June 2013 - Group successfully completed a private placement of shares targeted to Polish and foreign institutional investors. In total, the company gained approximately PLN 147m, which will be used to finance the easyPack expansion and continuation of the strategy based on the intensive development of the EasyPacks network in Poland and abroad.
    • May 2013 - InPost filed in the District Court in Warsaw lawsuit against the State Treasury to pay the compensation of PLN 35m plus statutory interest as compensation for the damage being a result of an unlawful act involving the issue of the legislative act that was contrary to the applicable European Union law
    • March 2013 - Group invested € 6 million in the easyPack company carrying out its international expansion of easyPack machines. Additionally another key shareholder Asterina Investments Sa R. L. (PineBridge) invested 12 million euros.
    • January 2013 - conclusion of the patent license agreement with Deutsche Post AG's pursuant to which Deutsche Post AG has granted a license to Group for its patents relating to technical solutions that can be used in the easyPack machines.


    Number of deployed and operating machines at the end of Q1 2013:


    Between January and June 2013, the Group continued its development on three key levels as the business owner:
    revolutionary easyPack by InPost machines
    • the largest private post InPost
    • an independent financial and insurance provider, InPost Finance


    easyPacks by InPost
    Currently, the Group continues the largest domestic and foreign expansion of easyPack machines in its history, including:
    • having 1100 machines in Poland at the end of 2013. In the domestic market there are currently 750 easyPack machines. By the end of this year, the network will be expanded by another 350 machines.
    • a significant expansion of services in foreign markets. Currently throughout the world there are about 2,400 automated terminals in 14 international markets in a variety of business models. In 2013, another 2000 parcel machines will be deployed excluding Poland.
    the launch of new EasyPack machines in 15 additional countries: France, Italy, Austria, Hungary, Turkey, Norway, Sweden, Finland, Denmark, the Netherlands, Switzerland, Romania and Bulgaria, Russia and Spain.
    Over the next 4-5 years easyPacks by InPost will also appear in the Americas and in Asia. The whole project could eventually reach up to 1 billion euros. In the U.S., Group plans to launch 10,000 easyPacks to the end of 2016 and in Asia the machines will be deployed in China - in Beijing and Shanghai.


    InPost - the largest private post in Poland- consistently strengthening its position in the domestic market of postal and courier services
    Currently 1300 Customer Service Points are available for the clients.
    Plan for the end of 2013 assumes to have 2,000 s Customer Service Points providing services to over 10 thousand for institutional clients, and 750 localities with offices for individual clients.
    In the first half of 2013 Group participated in 20 tenders for the provision of services to mass mail customers, and won the 12 of them. The total value of the won tenders amounted to PLN 8.39 million, while the number of shipments under contracts exceed 2.6 million units.
    Dynamic changes that occurred after the partial deregulation of the postal market in Poland in January 2013, caused the appearance of the intensified consolidation trends. Group sees in that phenomenon a great opportunity for the development of the domestic market.
    - The talks with potential partners are at a very preliminary stage. Currently, we have taken only the pre-emptive actions. However, we have to admit that Group wants to be an active participant of the expected consolidation of the Polish postal and courier market - adds Rafał Brzoska.


    InPost Finance
    InPost Finance - an independent provider of financial and insurance services; the company enables massive cash withdrawals, sending money transfers and utility bills payment. In addition, the company offers credit services for mass customers, and provides support to perform operations on bank accounts.
    InPost Finance provides services relating to the provision of money transfers, regularly winning public tenders. Currently, the company delivers more than 50 thousand benefits per month with a total value of more than PLN 50 million. The following public entities cooperate with independent financial service provider:
    Agricultural Social Insurance Fund (KRUS) branches in Warsaw, Lodz, Gdansk, Poznan, Białystok, Radom and Opole.
    Town or City Offices in Tarnów, Bydgoszcz and Poznan
    Municipal Social Welfare Centres in Łódź, Częstochowa, Tarnów, Bydgoszcz, Plock and numerous OPSs in Warsaw
    InPost Finance flagship services include electronic financial products: multi operator e-invoice and mobile payments, included in the portfolio of the company in 2010. Currently, mobile payment options are already being used by 100,000 individual customers so that the service has already reached the break-even point, and by the implementation of e-invoice service, the company has acquired a another 250,000 customers.


    InPost Finance also offers a wide range of insurance services. Currently, the company cooperates on a long term basis with:
    Generali T.U. S.A. cooperation includes the sale of individual property insurance, NNW (accident insurance) and travel insurance, and a full range of communications products. Cooperation activities also include the sale of corporate insurance: property, liability and transportation
    LINK4 cooperation includes the sale of motor insurance. Even in 2013, the cooperation between InPost Finance Sp. z o.o. and LINK4 will be extended by the delivery of money transfers. It is also planned to start selling home insurance
    Western Union. in the field of sending and receiving money transfers and support services, such as payments and cash withdrawals.