Magyar Posta focusing on regional B2C

parcel distribution

Transport-Ar 2009 Arad, 11-14 June 2009

Levente László, int’l sales executive

1 CEE and Hungary

2 Briefly about Magyar Posta

3 Briefly about International Business Unit

4 Briefly about CEE Competence Center

5 What makes us different ?

Europe and CEE

Hungary and CEE market size (inhabitants)

An average of 60-75% of the

population is living in urban

areas.

COUNTRY POPULATION

Bulgaria 7’700’000

Czech Republic 10’200’000

Hungary 10’000’000

Poland 38’200’000

Romania 21’700’000

Slovakia 5’400’000

Slovenia 1’990’000

TOTAL 95’190’000

source: Study from PriceWaterHouseCooper, 2008

Briefly about Magyar Posta

Mail : 1,6 billion pieces / year Parcel : 5,2 million pieces / year Financial trans.: 335 million / year Revenue: 765 million EUR (2008)

93.000 km2 10 million

inhab. 3 500

localities

Hungary

The Company

Corporatized in 1993

100% state-owned

Designated USP

Headcount: 35,000 employees Network: 2,744 fixed + 356

„mobile” post offices (serving 1000 settlements)

Postal network

Core business

Business Units Ildikó Szűts,

CEO Domestic Corporate Customers

Domestic Private

Customers

International

Customers

Logistic Systems

International recognition – World Mail Award 2009

Magyar Posta for its transformation from a bureaucratic

postal organization to a customer orientated service provider.

Briefly about International Business Unit

Established as business unit in 2004 to support

the international activity of Magyar Posta.

History

Vision

Priorities

To be recognized as Competence Center

for CEE – for international postal

services in the CEE and SEE countries.

(1) international activity based on partnership and bilateral agreements

(2) Leverage among the different sales channels and solutions

(3) One Point of Entry to CEE-region for

international postal services

International Business Unit is responsible for all international

mail (letters, parcel and express) activities of Magyar Posta

Botond Szebeny,

Exec. Director

International recognition – IPC Certificate of Excellence

Quality is always rewarded !

Magyar Posta International

Business Unit fully meets the most

rigorous quality standards in

handling international mail.

Only 12 other operators in the

world have had the privilege to be

awarded.

It is also the proof that our

efficiency can meet your company’s

requirements.

Activity of the International Business Unit (overview)

Traditional

international

mail business

- 2004

Be the CEE Competence

Center for our customers

2009 - 2012

2005 - 2008

Earning the right to play

on international market

• improving distribution

quality

• joining REIMS-East

• joining IPC-IDM

• joining IPC-EPG

• improvement of the

product portfolio

• joining Pay-for-

Performance EMS

• bilateral agreements &

partnerships

• outbound and

inbound activity

• UPU products

• strategic partnerships

• implementing different

sales & distribution

channels

•implementing a suitable

product portfolio

•implementing a low cost

CEE logistic network

• focusing on the

customers’ needs

Sub-Regional clusters expected in mail consolidation

Source: IPC Senior Executive Forum, Brussels, 9 and 10 October 2008

Mail expected to consolidate in

Europe based on regional

distribution consisting in

downstream solutions designed

to suit perfectly to the specific

needs of the companies

with regional activities.

DE; 29

DE; 20

DE; 8

DE; 20

DE; 18

DE; 33

DE; 29

DE; 22

AT; 23

AT; 8

AT; 12

Europa; 9

Europa; 19

Europa; 10

Europe 10

IT; 13

IT; 14

IT; 6

Italy 6

UK ; 5

SI; 12

HU; 9

CZ; 47

SK; 23

0% 20% 40% 60% 80%

HU

PL

BG

HR

RO

SK

SI

CZ

• Germany is the most important partner for the CEE countries

• RO - Hungary is the 3rd important relations for international letter mail

Top 3 relations CEE countries – international letter mail (outbound)

IT; 13

DE; 29

DE; 30

DE; 29

DE; 17

DE; 11

DE; 29

DE; 25

DE; 16

AT; 15

AT; 5

AT; 8

Europa; 12

Europe, 19

Europe, 9

Europa; 9

IT; 15

IT; 8

IT; 6

UK; 6

UK; 9

SI; 10

CZ; 44

SK; 25

0% 20% 40% 60% 80%

HU

PL

BG

HR

RO

SK

SI

CZ

Top 3 relations CEE countries – international parcel (outbound)

• Germany is the most important partner for the CEE countries

.

CEE Competence Center CEE Distribution Channels

(1) Terminal Dues – Utilizing

UPU, Bilateral and Multilateral

(REIMS East) agreements for

the final delivery of international

mail.

(2) Direct Entry Mail –

Utilizing the domestic products

and specific country conditions of

the receiving PPO for the final

delivery of mail.

(3) Alternative Delivery

Solutions (ADS) – Utilizing

ADS including PPOs and

delivery networks.

Magyar Posta International – More than just delivery !

CEE COMPETENCE CENTER

- transactional

mail

- priority

- economy

- registered

(value added)

LETTER

Solutions

INTERNATIONAL SOLUTIONS

MARKETING

Solutions

PUBLISHING

Solutions

PARCEL &

EXPRESS

Solutions

- unaddressed &

semi-addressed

- DM

- database

- business reply

- inserting

- periodicals

- catalogues

- books,

- Printed matters

- parcel

- express

- reverse

logistics

- COD

- track & trace

- hybrid mail

- e-COD

- e-PPI

- digital solutions

e- POST

Solutions

What makes us different ?

Optimal location - Gateway to Europe and CEE delivery

We can reach many of CEE’s emerging economies on our borders by road within 6

hours and we deliver to most European destinations within 48 hours by air.

Knowledge of Hungarian and CEE market

We provide a full range of competitive and personalized solutions for traditional

business mail and parcels and for high volume direct mail for CEE destinations

International Network

We operate through Exchange Offices in major markets with specialized staff to

offer you the most cost-effective solutions and smooth handling

Dedicated Account Manager

The Account Manager serves as a single point of contact, responding to all your

questions and ensuring smooth, on-time handling of all your mailings.

What is important for the customers ?

Source: BCG/IPC, 2008

What are we doing ? (regional-distribution model)

Postage cost

Transport cost

Distribution cost

Delivery lead-time

Transport lead-time

Leverage

Price-Time-Product

Lead-time Product

Price

Reliability Service

Efficiency

Letter product

Parcel product

Express product

What is motivating us? (satisfied customers)

Destination Hungary

CEE Competence Center – Letter mail prices for 2009

* The Ifo World Economic Climate Index is based on a monthly survey of more than 7,000 companies in Germany, asking them for their opinion of their current business situation

and their expectations for the future business climate. The index measures the changes in business confidence and is an early indicator for economic development in Germany.

Global downturn makes forecast difficult Go CEE !

Thank you for your kind attention !

Ask for a competitive quote e-mail: international@posta.hu

The CEE countries represent a massive business

opportunity that Magyar Posta International

– as your single-source international

postal partner – can help you exploit to the full !