Inpost Sa

Good morning, my name is Gabriela Burdach and I'm the Investor Relations Director at InPost. Welcome to InPost Full Year 2024 Earnings Call. A quick disclaimer, today's call includes forward-looking statements that are subject to risks and it is possible that the actual results may differ materially. This call is being recorded and the recording will be available on our IR website shortly after we wrap it up today. After this slide, we will have a Q&A session. Today's presenters are Rafał Brzoska, CEO, Michael Rouse, CEO International, and Javier Van Engelen, CFO of InPost Group. I am now pleased to hand over to our CEO, Rafał, over to you.

Good morning, everyone. Thank you, Gabi, and thank you all for joining us today. I'm really thrilled to share the outstanding results of InPost Group for the full year 2024. It's been really a record-breaking year for us, demonstrating the strength of our business model. As you can see, we've achieved significant growth across all key metrics. Parcel volumes increased to 1.1 billion, a 22% increase year on year. This increase in volume combined with strategic initiatives moved our revenue to more than 11 billion of Polish zloty, a substantial 23% year on year growth. Last year, we also invested heavily in our future with capital expenditures reaching more than 1.4 billion, which is a 37% increase year on year. This investment is primarily focused on expanding our network and enhancing our operational capabilities to support our continued growth trajectory, particularly in international markets. Despite of higher capex, we finalized 2024 with lower net debt to EBITDA ratio, including 0.4 billion spent on M&As, reflecting our prudent financial management and strong cash generation. Our profitability has also seen a significant boost, with group-adjusted EBITDA reaching 3.6 billion Polish zloty, a robust 33% year-on-year increase. This reflects the operational leverage we've gained from our expanding scale, but also efficient operations. Group-free cash flow also saw a healthy increase, reaching almost 1 billion up 22% year on year, further demonstrating the combined strength of our performance and financial discipline. Let me now share some updates on our network development. Last year, we deployed a record high number of APMs, significantly expanding our network and reach, which goes hand in hand with increasing local efficiency. We've added an impressive 11.5 thousand APMs, further solidifying our position as a leader in out of home delivery in Europe. Our total APM network now stands at 47,000 machines, representing growth of 32% in recent year. I want to emphasize it. Across the markets in which we operate, we are the largest APM network and third largest logistics carrier by volume. We've also seen growth in our PUDO point network, which has reached 34,000 locations. This expansion of both APMs and PUDOs provides even greater convenience and flexibility for our customers, allowing them to send, collect and return parcels at a location and time that suits them best. Also, this expanded network is crucial for supporting our growth and ensuring we meet the increasing demand for our cross-border service, which we launched last year. Let's move on to the next slide, which addresses market trends. As in previous quarters, we continue to gain market share across all our geographies. Last year in Poland, we continued gaining market share while already being the outright market leader. In Montreal-related countries, our growth has outpaced overall e-commerce parcel growth with volumes and a strategically important B2C sector rising by an impressive 28% year-on-year and dynamic growth in APM volumes up by 81% year-on-year. In the UK, the demand acceleration is driving the needs for faster APM deployment and we remain focused on network development to expand the volume. Having completed Menzies acquisition in October, we are now a stronger player with fully in-house logistics to out-of-home points. On the next page, you may see that, of course, we are proud of the business progress. We remain strongly committed to ESG and especially the reduction of our environmental impact. We are on the path to net zero by 2040 with a very strong focus on minimizing our emissions per parcel. Our APMs and PUDOs are key to our sustainability strategy. They offer convenient alternatives to a traditional delivery, leading to a 98% CO2 reduction over the last mile and 71% across the entire route. We are also continuously reducing overall CO2 emissions per parcel with a 37% decrease over the last three years. As illustrated on the right-hand side, our commitment to ESG has led to consistent year-on-year improvements in our ESG ratings, which notably surpassed the industry average. We will continue investing in green technologies and sustainable practices as we strive towards our net-zero goals. Moving on to our business update for Poland, where we continue to strengthen InPost as a love brand. Let's start with our robust and growing user base. 24 million users in Poland use our services. This number represents almost 100% of the Polish e-commerce population, which demonstrates the widespread adoption and preference for impulse convenient delivery solutions. Our mobile app plays a significant role in driving user engagement. We have almost 14 million app users, a number that surpasses the number of households in Poland. These customers order over 40% more than non-mobile app users, demonstrating the increased engagement driven by our app's convenience. Last year, we launched our loyalty program to further enhance user engagement. We already have 11 million users registered and the program already generates millions of incremental parcels showcasing its effectiveness in driving additional volume while rewarding our loyal customer base. Let's move on to the next page. While the previous slide demonstrated loyalty, on the next two slides, I'm proud to share some external survey results that clearly show that InPost is by far the preferred brand for e-commerce shoppers. First, almost every e-commerce shopper in Poland prefers InPost APM delivery over other methods, whether it's Tudor, Pudopoint or other APM provider. The second chart speaks for itself. People are willing to recommend us more often than to recommend other carriers and other APMs brands. Our NPS of 77 stands out well ahead of our competitors. Slide 11 shows the impact impulse APMs have on conversion rates. Starting from the left, a whopping 88% of consumers choose impulse as their most frequent APM for delivery. And again, this is far ahead of any competing APM network. In the middle, 95% of shoppers claim that impulse convenience, quality and reliability are motivating them to shop online. Let's move on to the next slide. On this page, we go back to the hard numbers of footprint where the share of compartments is the best measure to express unrivaled proximity to the Polish consumers. We are and remain the leader in terms of the number of APMs, but we have an even more clear leadership with over 70% of the number of compartments on the Polish market. Do note that the balance 30% is shared by many different brands with separate logistics, varying quality, separate IT systems, and completely different strategies. Leading in APMs and compartments is one thing, but knowing how to operate them is something completely different. Let's therefore see how our network performs on the next page. Looking closer at our Poland operations, let me draw your attention to the three important performance indicators. First, our APM infrastructure has expanded significantly by 15%. We've grown to over 25,000 lockers, solidifying our leader position in Poland. our parcel volumes increased by 20% year-on-year. APM volume was up by 18% and Tudor delivers experienced more dynamic growth of 27 largely driven by the expansion of international e-commerce platforms. Every year, roughly 20% of our volume growth comes from new merchants in spite of the leading position in the market already. Third, And as a logical result of the first two points, despite our leadership position and the increase of competitive networks, the utilization levels of our lockers continue to grow. This success is not only due to growing volumes. It is driven by our robust logistics backbone, advanced data analytics, and cutting-edge technology that enable us to enhance efficiency, particularly in the middle and last mile of delivery. These metrics confirm that we are simultaneously growing our physical presence, increasing delivery volumes and improving efficiency. A very powerful combination that positions us well for sustained profitable growth. Next slide, please. Let me now focus on our innovations. InPost Pay and the more recent loyalty program. InPost Pay already has almost 8 million registered users and partnerships with over 1,600 merchants that already see a 30% plus increase in their checkout conversions. These metrics confirm that InPost Pay effectively meets market needs while delivering value to both merchants and consumers, really advancing our group's mission to enhance e-commerce experiences. Which brings us to our loyalty program. although just launched in the last quarter. It is already a success. It attracts customers and increases user and merchant loyalization. Over 11 million users have enrolled and we already see that these users order more than before, bringing in that incremental number of parcels. We've received a lot of positive feedback and we plan to roll out loyalty program to other markets too. I'll now hand over to Michael for an update on our international business. Thank you very much.

Thanks, Rafael. Good morning, everyone. 2024 has been a strong year for the international business and all the markets that operate within it. We continue to accelerate our flywheel across all of its components as our international expansion gathers increasing momentum. We expanded our international network by over 11,000 out-of-home points, including over 8,000 APMs. We continue to heavily invest in our critical infrastructure capabilities, both in APM network deployment, but also in logistics sites, opening over 20 new depots and hubs in 2024. These investments build the backbone and allow us to continuously improve the quality of our services in each market to enable that long-term consumer centricity and adoption that now fuels our Polish business. As Rafal mentioned, it's not just about lockers. In all our international markets, we've continued to grow our volume well above the market rate, taking market share from incumbent legacy players, supporting merchants in fueling the local and cross-border e-commerce markets, and solidified in post in Mondial Relay as the leading locker solution in the UK and France. In our international markets, we're either a clear number one in terms of APM network, which is the case in the UK and France, or we're number two, like in Iberia and Italy, and accelerating, where the number one today is Amazon, but operates a different model. What we're really very focused on is investing in the network in all markets, but with the UK taking greater importance to satisfy rising consumer demand for our APM solution, Europe's largest e-com opportunity. What we're also proud of is our merchant base. We cooperate with over 56,000 merchants, with 2024 being a year of big wins, and our app has gained significant penetration, attracting millions of new users to APMs. As we move on to the next slide, just to demonstrate, 2024 has been such a big year of wins, with our merchant B2C base expanding, and this has been such a critical element of our international expansion. That's why I'm extremely proud of what you can see on this slide, that we have such players in our portfolio, such as H&M, Adidas, ASOS, Zara, and international marketplaces to name a few. And as our market penetration and quality of services improve, we continue to see increasing share of checkout development coupled with a growing pipeline for new brand additions. The growth potential from B2C has such significant headroom as we start from such a low base in all our markets. Now let's focus on Mondial Relay. There are two crucial points that I'd like to highlight here. In 2024, we deployed a record high number of almost 4,000 APMs in Mondial Relay markets. The number of APMs increased by 73% One of the drivers of such dynamic network expansions was deals with major retail chains like Carrefour, Conforama and Lidl, as we continue to leverage pan-European coverage. As our locker density coverage increases, with increasing density, we continue to observe the positive trend of the increasing adoption of our lockers. The number of parcels delivered to lockers has almost increased by 81%, exceeding the APM growth by almost 10 percentage points, with locker volume now accounting for 30% of our volume within Mondial Relay, again demonstrating significant potential for volume conversion as the locker estate expands. As you can see on the right-hand side, the result of APM volume growing faster than deployment is the increasing utilization of our network, but also a factor of the quality of locations being deployed. Javier later will talk about this in the financial section and how it enhances the economics. On the next slide, we continue to see strong growth in the B2C and return segment, which has significantly outpaced total volume growth and was higher than in previous quarters. With C2C year over year remaining stable, the share of B2C in our total volume is increasing. For Q4, it was almost 50%, but there were some weeks in Q4 when we saw a B2C share even close to 60%. What I'd also like to highlight here is the improvement in delivery time and quality. We always say that we're more than just lockers and quality is one of those components of our success in Poland. Our infrastructure investments in not just lockers, but also last mile and middle mile coverage with the 20 new depots and hubs I mentioned before, demonstrate our roadmap to replicate quality in international markets. The results in Q4 in Mondial are a testimony to that, and with over 60% of Mondial relay B2C parcels in Q4 in 2024 were delivered next day, and 90% within two days. Also last year, we focused on our merchant base expansion. both with hunting and farming activities. We expanded our merchant base by a few thousand, and now 55% of top e-merchants in France are Mondial Relay clients, with significant headroom to expand share, both with new wins and share of checkout. In 2025, we'll remain hyper-focused on this strategically important growth opportunity. So moving on to slide 21. This slide is extremely important, and I'm really pleased to present it. This journey of the transformation of Mondial Relay began in 21 to turn around a legacy low-cost regional player into a number two market playing disruptor is now gaining clear consumer choice and recognition. According to a recent consumer perception survey, awareness levels have significantly improved for Mondial Relay, and we now lead in top-of-mind awareness in France. We're also the most recognized out-of-home provider, which is critically important, given that more and more French consumers are choosing out-of-home delivery, with over 50% of total e-commerce shoppers in France making that their preferred choice. The satisfaction of our APM clients, whose numbers has increased by over 80%, is also reflected in the MPS index, where we have held the highest position in the market for the last few years, and with that gap increasing against the nearest competitor. On the next page, our mobile app development and traction is an important ingredient to creating this consumer awareness and satisfaction. We have now 3.2 million downloads at the end of 24, with the 4 million number fast approaching this month, demonstrating the pace of traction within the French consumer base. We've been adding new features and actively listening to our customers' needs and responding to them. We're very excited to see that our app was one of the most downloaded in the mobile stores in 24 in France, reaching number one download during Q4. Together with what you saw on the previous slide, this confirms that we're on a good path to replicate the premium love brand that we have in Poland across the French market. Now, let's turn our attention to the UK. The UK is the largest e-commerce market in Europe, with volume reaching over 4 billion parcels on an annual basis. We have a strong presence in C2C and returns for B2C. The product offers that started our UK journey has allowed us to quickly capture consumer adoption for using lockers to drop off parcels. The largest part of the UK e-commerce market is B2C, where we have just launched our services in Q4 24. We're currently focused on enhancing our B2C offering and driving greater adoption among merchants, where we're already live with 40 merchants and over 50 already in integration pipeline. So we have a strong base of return clients, mainly from the growing fashion segment, and we're focused on adapting them to use our B2C services. Our plan in 2025 is to have over 300 B2C merchants by the end of the year. And from the user's perspective, we see that approximately 50% of our B2C users who order to lockers were already our clients, either with returns or C2C previously, demonstrating that the entry strategy has provided us a strong consumer base to further drive adoption and usage. And let's move on to slide 24. On the next slide, we show how we're expanding our focus on the network. And expanding this network is crucial for our growth in volume, especially as we've launched our B2C offerings. In 24, we significantly accelerated our network by deploying nearly 3,000 machines and almost doubling the number of PUDOs. As a result, we now boast the largest APM network in the UK, reaching 65% of the population in the top three cities and over 40% of the entire UK population. This enhanced convenience has attracted more customers, leading to a 60% increase in the user of our services while maintaining our high Trustpilot score. Similar to France, quality and consumer centricity is at the backbone of these services. Throughout the whole of 24, utilization of our network was over 100%, which means that our locker growth must now even be faster in order to meet demand for our services from the increasing number of in-post users. So the focus for 25 in the UK is to accelerate the deployment to ease utilization and prepare for B2C service expansion at even better quality. With 15,000 locations our target for the year end, And that will be our single biggest ever deployment in a year in a single market. So here on slide 25, we focus not only on our network, but also on merchants and on in-post users. Similar to Mondial Relay, we're seeing great interest in our UK mobile app. The number of our app users has doubled year over year, nearly approaching 2 million, and we're ranked highly. The UK app remains a key focus and a key area of development, especially since we see that users who engage with it pick up more parcels than those who don't. So the UK market is really set for further development in 2025, and now I'll hand over to Javier to talk about the financials. Thank you.

Thank you, Rafael. Thank you, Michael. And good morning, everyone. Let's now see how all of this translates into the company's key figures in Q4 and for the full year 2024. At the group level, both parcel volume and revenue showed continued strength in Q4 2024, outpacing the market in all our geographies. Parcel volume was up plus 20% year-on-year, with Poland and international growing at respectively 20% and 21%. Group revenue increased by 26%, driven by 15% growth in Poland and a 44% increase in international markets. More on the international revenue growth a bit later. Group-adjusted EBITDA rose by 35.7%, with international markets contributing significantly. In both Poland and international markets, Q4 2024 adjusted EBITDA margins were high, 47.2% in Poland and 18% outside of Poland. While I'm sure you find slide 28 very informative, I won't spend too much time on revenue and EBITDA by segment, as this will be discussed on the next slides. Instead, I will focus here on CAPEX, net leverage and free cash flow. As you can see in the table, in Q4, capex intensity increased year on year, with capex to revenue ratio reaching 12%. This was primarily due to our strategic investments in the APM network, which accounted for over 62% of Q4 capex, along with further investments in our logistics infrastructure, such as the sorting hubs and depots mentioned by Michael. Group free cash flow for Q4 2024 totaled 355.6 million Polish zloty. Combined with adjusted EBITDA growth, this helped reduce our leverage ratio to 1.9 times, which is a marked improvement compared to the 2.2 times at the end of 2023. As mentioned by Rafal, the solid financial performance underscores are committed to balancing growth with financial discipline, enabling us to deliver strong results across the board. Overall, in full year 2024, at the group level, but also at every segment, which you will see on the next pages, we have more than delivered on the full year outlook given to the market. Now let's discuss the quarter four financial highlights from our Polish business. Parcel volume in Poland grew by 20% with a strong performance across the board and the greatest gains coming from SME merchants, fashion and domestic and international marketplaces. Revenue increased by 15%, lower than volume due to a higher share of volume from international marketplaces. Our adjusted EBITDA margin in Poland reached 47%, slightly above the year-on-year figure due to a flat cost per parcel year-on-year and control over SG&A. On the full year, in Poland we delivered growth above the market and we delivered guided growth in revenue and even slightly better on EBITDA profitability. Moving on to Mondial Relay on the next slide. Mondial Relay achieved a 10% decrease in volume, largely outpacing the broader market. This was fueled by a robust 28% year-on-year increase in the strategically important B2C segment, along with a slight decrease in the C2C segment. Revenue in local currency rose by 16% year-on-year, strongly above volume growth, which is attributed to favorable product mix within the cross-border volume. Our adjusted EBITDA saw a substantial 55% increase, or 60%, in local currency, driven by robust B2C volume growth, APM adoption, operational leverage, and wealth-controlled SG&A expenses. This is a continuation of the trend we have seen in the previous quarters. On the full year numbers, we grow by 11% in volume and revenue, and we over-delivered on the adjusted EBITDA margin by growing not between 200 and 300 basis points guided earlier, but by 360 basis points. This trend very much is in line with our medium-term ambition. On the next slide, you'll see that in the last quarter, combined volume for this segment grew by 56%. The 151% increase in revenue for the segment is impacted by the Menzies consolidation. The revenue of our old UK segment increased by 57%, fueled by both volume growth and an optimized product mix supported by Rabbit, network expansion and logistics enhancements. In Italy, revenue reached 93.6 million polis lotti, marking a 56% increase compared to Q4 2023, driven by strong B2C and C2C growth. For the segment as a whole, adjusted EBITDA moved from a low 7 million Polish Zloty in Q4 2023 to 111.3 million Polish Zloty in Q4 2024, achieving a double-digit margin of 13.7%. Profitability for the entire reporting segment is higher than in Q3 2024 due to the improvements in margins in each market. On a full year basis, just like in other segments, we delivered on the volume and revenue growth and guided improvement in profitability. On the next page, you can see our usual bridge between adjusted EBITDA and net profit for full year 2024. Year-on-year adjusted EBITDA in Polish Lottie for 2024 is up by 33.5%, translating into a profit margin improvement of 250 basis points from 30.8% to 33.3%. Net profit from continuing operations in absolute terms is up by 93% or by 400 basis points from 7.3% to 11.3% of sales. Group EBIT is up in 2024 by 30.8% year-on-year. The higher IFRS 16 amortization is mainly driven by network scale, APM land and debt policies, and the optimization of operations. Between EBIT and net profit, you can see the usual interest expenses connected with debt. and a sustainable improvement in our effective tax rate due to lower losses in the UK and Italy compared to last year. One small note here, apart from the usual adjustments, you can also see a new line that reads incentive programs set up by shareholders. This line will show our old management incentive program as well as the earn out given by our shareholders to the CEO, both non-cash and unrelated to our financials. However, we need to book it here in line with IFRS 2 guidelines. This non-cash item will be visible going forward at around 60 million Polish zloty annually. The next slide again showcases the very healthy cash generative dynamics of Impost's business. In 2024, Poland generated almost 1.6 billion in free cash flow, representing a free cash flow conversion rate of 53% compared to 49% in the previous year. Free cash flow investment in international markets amounted to 662 million PLN. resulting in a 26% group-adjusted EBITDA conversion, slightly lower than in the same period in 2023, mainly due accelerated international APM network development and the increase in mondial relay lease payments. To close the financial highlights section, let me say a word on net debt and leverage as shown on this slide. In 2024, gross debt increased by 1.1 billion Polish zloty up to 7.8 billion Polish zloty, with changes mainly in IFRS 16 lease liabilities and other IFRS 16 items such as transportation, fleet and office leases. Net debt increased by 891 million Polish zloty, lower than gross debt, on the back of higher cash generation. The higher net debt combined with a 33.5% increase in adjusted EBITDA resulted in a decrease of our leverage ratio from 2.2 times at the end of 2023 to 1.9 at the end of 2024. As you are probably aware, we have recently provided information about the refinancing of our debt. So starting from Q1 2025, the structure will be slightly different. Now let me close the financial highlights with our outlook for 2025 and an update of Q1 trading, as you can see on the next slide. For full year 2025, we anticipate group revenue to grow in the high teens to low 20s range and will surpass market volume growth in all our geographies. We expect volume to growth in the mid-teens across the group, high single digit to low double digit growth in Poland, mid to high single digit growth in mondial relay markets, mid 40s growth in the UK reflecting network expansion. Revenue should grow slightly higher than volume in Poland and Mondial relay due to favorable mix and repricing. In the UK, newly acquired Menzies new straight part will be consolidated for the full year and will boost our revenue in that part. At group-adjusted EBITDA level, we expect an increase in the low to mid-20s, translating into a slight improvement in group-adjusted EBITDA margin. We expect Poland to stabilize at mid-40s margins and international markets to continue showing improved profit margins. We plan to deploy over 14,000 additional APMs this year, including 3,000 in Poland, 4,000 in Benefralux, 4,500 in the UK, 2,000 in Iberia and 1,000 in Italy. Our capex should reach around 1.8 billion, with 60% invested in APM production and deployment. Despite this, we expect positive cash flow and further deleveraging, excluding M&A activities. Now for Q1 2025, in Poland we anticipate around 10% volume growth, thereby clearly outperforming a softer e-commerce market and delivering year-on-year growth across all segments, regardless of the very high baseline established in Q1 2024. In international, we also continue to outgrow the market, expecting around 70% in post-volume growth year-on-year. These numbers support our full-year 2025 outlook. Before we go to Rafal and Q&A session, I'd like to highlight one thing to those that model in excels. On the last page of our slides available on our website, you'll find segmental division as reported in 2024 and 2024 recalculated to the new segment reporting. Starting from 2025, we will change our reporting slightly, but our investor relations team prepared additional data in the slides and excels to help you understand it better and be ready for Q1 2025 numbers. And with this, let me hand it over to Rafal for closing comments and a focus on the key points for 2025. Thank you.

To wrap up the presentation, let me highlight our key focus areas for this year. In Poland, we are expanding our APM network to meet the growing e-commerce demand and to strengthen our brand through improved user experience and loyalty programs. We continue to grow and expand our digital services like pay and endpoints that entrench mutual customer and merchant loyalty as we accelerate heavy and medium user engagement. In France, our focus remains on B2C merchant acquisition and farming, launching to door delivery and investing in quality improvements for faster delivery. In the UK, we are accelerating locker deployment, expanding our B2C merchant base as we develop our new services and optimizing network utilization for efficiency. And all our markets will continue to expand our cross-border offer that includes adding UK to the rest of the pack where we are already connected under impulse network. Our 2025 plan is designed to position us for sustained growth and market leadership in these key regions. We are absolutely confident that these strategic initiatives will deliver strong results and create a significant value for all our stakeholders. Thank you all. And now over to the operator for the Q&A session.

Thank you, sir. Ladies and gentlemen, if you wish to ask a question at this time, please signal by pressing star 1 on your telephone keypad. And please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. If you find that your question has already been answered, you may remove yourself from the queue by pressing star 2. Again, it is star 1 to ask a question. The first question today is from Alexia Dogani from JP Morgan. Please go ahead.

Good morning. Thank you for taking my questions. I had three, please, if possible. Just firstly, can you talk a little bit about the consumer backdrop in Poland and how you see the e-commerce penetration evolving over the next couple of years? Secondly, can you talk a little bit about your customer composition in the Polish market? Where do you see growth? And if you're able to give us an indication of how much you expect to de-risk your exposure to the largest customer currently. And then finally, in the UK, can you just discuss again your M&A strategy? Clearly, you've done the Menses acquisition that really has helped your logistics capability. You're now accelerating your customer sign up. Do you need M&A to deliver the plan that you're presenting today or additional M&A rather? Thank you.

Thank you.

Maybe let me first. Good morning, guys. Answer the first two questions, then I will hand over to Michael. So the consumer backdrop, definitely we observe. I mean, we observed that earlier on, but it was confirmed by some of the external sources of information. I mean, you know, the base linker index that was published yesterday. for John and for Fab is confirming that we see a kind of slowdown in terms of the consumer sentiment. Of course, the first quarter in 2024 was extremely strong. So also the base is playing a role here. But what we see, it's all about consumer sentiment linked to the geopolitical situation. That's first element that comes from the from many surveys that people don't feel comfortable what's going on. You know, it's, we need to be very clear saying that, you know, we are very close to the situation in Ukraine and the question marks around the peace in Ukraine, which I strongly believe will end up as a positive outcome. But the uncertainty around this is literally something that's not helpful. I feel the good thing is we see clearly that, and maybe that's a segue to the second question, that the Polish merchants, specifically the verticals, independent merchants are becoming stronger and stronger. We have more and more people creating vertical marketplaces and that definitely it's a great pro for us because then we are more and more diversifying away from from the biggest merchant which is already visible i mean um all the data points showing clearly that also q1 slowdown is uh is um is less harmful to to the smaller players uh than to the biggest and also the challenge coming from asia is more and more visible already both on the um number of consumers using the chinese platforms uh which is now uh i think already uh the leadership position uh on timu side uh and us being agnostic working for all of them being integrated with 60 000 merchants in poland and having all the consumers In our hands, having 24 million, it's literally 90 plus percent of online shoppers using InPost and having InPost as the preferred delivery method. That gives us confidence that not only in Q1, although it's maybe less positive on the consumer sentiment, that Q1, again, will prove that we are growing. And in terms of the overall picture for the short to mid term, we definitely want to steer our consumer base specifically by boosting our international expansion into the moment that the largest client within our portfolio will be below 10% of our revenue. And that's, of course, something what... we want to steer and we want to have our destiny in our hands not someone else uh and by definition you know showing the results for 24 and recent years we already proved that that this is something what we can execute um very well but casting more light on the uk uh michael handing handing over to you

Yeah, good morning. Thank you, Raphael. Yeah, look, I think Menzies has been a very successful acquisition and integration. Really, we've seen the effects of that now since we took full ownership and the performance across Q4 has really cemented how we really see the opportunity in the UK and really unlocking those bottlenecks for volume growth. On the last call, we about a quarter ago we also updated that we've done an investment part intended into yodel to really cement that partnership because a third of our uk business today is to door delivery clearly our menzies focus is very much on out of home coverage but clearly we can't ignore the the to door penetration in the uk and the opportunity to convert that volume So I think overall, really, we're really happy. Near term, really, we'll continue to focus on cementing and integrating Menzies as well as developing the Yodel partnership to really increase the quality and coverage of that solution to really increase our addressable market in the UK. With regards to M&A overall, I think really we remain opportunistic very much so, clearly looking across not just the UK, but all of Europe, as we think about what potential assets could be available, and two, how they could complement our network in any element, not just in terms of logistics, but sort of either technology or even locker development linked to that. as we try to increase our penetration. But UK is very much happy with our current position and cementing it and improving the quality.

Thank you. Thank you. We'll move to our next question from David Kerstens from Jefferies. Please go ahead.

Good morning, gentlemen. Thank you for the presentation. I also have three questions. Maybe as a follow-up to the consumer sentiment in Poland, Can you also talk about what's driving the weaker momentum in the international business? Is that exactly for the same reasons or any other factors at play there? Then the second question, it seems that the pace of international market expansion is accelerating to 720 basis points in 2024. Do you expect this trend to continue? And when do you expect to reach the 25% to 30% EBITDA margin target for the international businesses? And then finally, on the competitive landscape in Poland, you clearly highlighted it's not about the APMs, but if you look at lockers, you have a market share of more than 70%. Can you also give an indication what that market share would look like based on volume, given your very high utilization? I suspect your utilization is above 100%. Is there any indication you can give what the market share would be based on volume? And how would you expect that utilization to be impacted With Allegro and DHL further expanding their network, I guess adding lockers does not improve the utilization per se. Thank you very much.

Thank you, David.

Maybe you know on the first and on the last one, in terms of the consumer sentiment, unfortunately, not for us, but for the market, we see many ecom players claiming Q1 is weaker than they expected. It differs from market to market. There are markets where it's not so visible, like in Spain, for instance, the Spanish merchants are not saying so, but Germany, France, some of the UK merchants, they claim it's below their expectations. So I think, you know, we observe an overall softer Q1. But of course, for us specifically on all our international markets, we are super satisfied with the first volume look on the market. on the input market share and the growth opportunities. So it's not only Poland. It's not only Poland, definitely. The question about the volume market share, I have a deja vu. I think I had like two or three times already since our IPO. we had a moment where some of the people were questioning, you know, what's really most important in terms of the in-post flywheel. And the only change in what we said in the past is that lockers itself, it becomes less and less relevant. I think three years ago, I said, this is maybe one fourth of our Now I would say it's 15% of impulse success. The more we develop, the more we add on top of the stickiness of the consumers, loyalization, loyalty program, and now new services like impulse pay, we literally... have stronger confidence that it's much more complex. And just to give you an example, we pick up in Poland from 130,000 places a day. 130,000 a day we pick up parcels from the merchants, from the senders. 85% of those pickups is below 10 parcels. Now, imagine that you want to send two or three different vans of two, three different companies to pick it up, to deliver like impulse delivers next day. It means that one courier company will pick up maybe two out of those 10. The other one, the lucky one, maybe four. And the last one, another three, or maybe one. How will it change the cost of the first mile for those three players? And this is just the first mile. Then you have the mid-mile where you have exactly the same problem. And then you have the last mile where you split that utilization between a few parties. I mean, I don't understand where the logic is behind, but only through consolidation of the full value chain, you may get to the point that something is better, cheaper, or at least comparable to what we do. That's why being agnostic and having opportunity to serve the whole volume that is existing on the market to the entire group of consumers, 24 million consumers, you may really replicate in post-business model. In any other proxy scenario, you will just create a noise. Because non-single number will support that noise. Because of the reason I gave you in this one short example. This is just one example. So... In our hands, we want to keep the opportunity for the future growth on that market. That's why we have accelerated our local deployment because our machines are full, like you rightly said, David. So we want to be ready for peak. We want to have enough capacity for our loyal merchants for peak. And we need to build that capacity for those who really want to complement their end users, not want to spoil them. And I think that's in a nutshell. But happy to hand over to Javier in terms of the margin expansion.

Thank you. Hi, David. First, on the margin expansion, let's go back to 2024. Yes, of course, we're happy on the performance. Total EBITDA margin up 240 basis points, Montreal relay 360 basis points, UK and Italy from a negative profit margin to 13.7%. And in all those metrics, We have done better than what we had as an outlook, especially if you look back at the beginning of 2024. So happy with the outperformance, happy with the year-on-year progress, and at the same time, Poland stabilizing. So also that at 46.2% is what we promised. So number one, I think happy not just for the numbers. Also, if you look at the dynamics when you go back to international markets, it's a continued proof that what Rafael talked about, the flywheel is working. this is about strategically choosing to move more to b2c moving business more to apm and we know that all of that together with quality density and merchant acquisition is creating that flywheel which allows to improve profitability as the business grows so in that sense also from an outlook point of view it shows that i think we're pretty disciplined we're reliable on what we say we will deliver and i hope we also see that we're pretty transparent on how we can explain the numbers As you look to the future, remember we've always said that with the flywheel working, that mid-term, those international markets should get close to a 30% profit margin. And that is a trajectory that we are on. Now, we'll take a couple of years as we build volume. But the same strategy will apply. It's B2C acceleration, it's further deployment in converting and moving volume from Tudor and PUDOS to APMs. And therefore, again, it's a flywheel in motion. So we will continue to smartly invest. We've got a disciplined approach, whether it's with M&A or organic, on how to further deploy APMs, how to grow the business. And yes, we expect in the next couple of years to keep on driving toward that 30% margin. Is it going to be exactly the same 700 basis points that we have in 2024 versus 2023? Perhaps not because the base now is, of course, a little bit higher than that, but still a marked improvement we should be able to achieve as we get more volume and as we get this flywheel really working as it has done in Poland. So we've always said that the end point is not 30%. Longer term, it might be higher, but again, the first midterm point would be close to 30% and we keep on building for that.

Very clear. Thank you very much, gentlemen.

Thank you. We will now move to our next question from Marco Linete from Barclays. Please go ahead.

Hi, good morning. Thanks for taking my question. So the first question is a follow-up on the Mondial Relay margins. So clearly you achieved a very big improvement in margins in 2024 compared to 2023. You're not guiding for any, let's say, margin improvement range for 2025. So, just wondering if you will be able to give an indication on that. And second, still on the Monday-Ray margin, I mean, my understanding is that in 24 the margin expansion was driven also by the switch from PUDO to APM. So, just wondering if you... able to provide a bit more color on the difference in margins between an APM delivery and the PUDO delivery in France. So, for example, how low is the unit cost when you deliver to an APM versus PUDO? And the third question is on your loyalty program in Poland, which Rafal was mentioning before. So, can you give a couple of, let's say, the most successful examples in your uh program so for example you know you were mentioning uh the coins that the consumer can collect how these coins can be used yeah so just just practical examples on that thank you very much

Thanks, Marco. I'll take the Mondial Relay questions and then refer it back to Rafal for the loyalty in Poland. So, answering your question on Mondial Relay guidance, no, at this point in time, we're not going to provide any more detailed guidance. We still say that international will keep on improving. That's across the territories, so we expect Mondial Relay will also continue to improve. By the way, in the new segmentation, we will basically also see that we look at the UK and we're going to be more transparent that you see the UK as a whole. And you're going to see the rest of Europe basically combined as there's also more cross-border happening. But fundamentally underlying, the same that we've said on the flywheel before, we need to keep on converting more. customers, SMEs, B2C business, and we need to convert more business to the APM. So that is still the two margin drivers together with general volume that should make us further improve our profitability in Mondial Relay Margin. That's basically what we are doing in the past and what we continue doing in the future. In terms of your question more strategically on expansion and PUDOs versus APMs, we don't disclose individual numbers on those different streams, but it's obvious that the efficiency of delivering a PUDO network versus an APM network is much more to the favor of an APM network. Of course, it depends on the density of the APM network and the utilization of the APMs, but we've proven in many markets that we know how to manage that. As Rafael said, it's not just about putting APMs in place, it's the expertise on how to run them, which makes a difference. On top of that, PUDOs also have separate fees you need to pay. So obviously, lower efficiency in the amount of parcels you can deliver logically to the PUDOs versus APM and the fees you need to pay make APMs clearly the preferred vehicle to go to and also from a profitability point of view. And therefore also, there's been a couple of articles on that, it's clearly also for us that When you look at the amount of touch points for the consumer, we will be building up APMs and you will see PUDO touch points going down over time because that is both from a consumer experience point of view, a merchant quality point of view, and from a profitability point of view, the right way to go. So again, in line with the strategy that we've laid out for other markets, the same applies to Mondial Relay and it's also a profit driver. Rafał, can I refer to you for that?

Yeah, sure, sure. Happy to. Hi, Marco. So the loyalty program we enrolled is the most successful loyalty program ever enrolled in Poland in such a short time in recent 30 years. So this means, you know, 11 million clients in literally less than two quarters. And what is the most profound effect, which is already visible, we may and can cure the traffic of our consumer base with this loyalty program. We have already tested that successfully and it is already visible in Q1. That's why we will continue to focus not on the noise, but on our consumers, because it's us being in control where we steer our consumers base. What does it mean? We have already embedded AI. We have created personalization. We are meeting consumers expectations before they even say what they expect. So I don't want to disclose all the details at this moment because it's a very early stage, but we see first results that every consumer, we steer them with proper incentive towards certain merchants. His number of parcels ordered or number of orders increased by 40% in some cases means we are multiplying the effect of the, let's say, organic growth of the market by having a very visible additional boost if we want to boost them towards the direction of certain merchants or certain marketplaces. And that gives us this enormous confidence that loyalty and stickiness of the end consumers will be the critical paper of the market in coming few years. And that really makes us happy. That's why also, you know, the list of new features that we are developing around that environment that we have created for and the ecosystem we've created for the end consumers is really a long list. So quarter by quarter, you will see new features being applied for our consumers base. It's like with the subscription model for the magazines and weekly, monthly magazines that we have started last week. This is a total potential of 200 million parcels just in our nine geographies. 200 million parcels total, completely new business, where of course we combine all the competencies from Menzies, but also our stronger position across the markets and out of home. This will bring the effects. And this is just one of the examples.

Thank you. And if I can stick one quick one to Javier, just to make sure the message is clear. So you are guiding for stable margins in Poland at mid-40s, but under the new disclosure, your margins in Poland were 47. So just to make sure that the guidance is stable, you have a year rather than 47 going slightly down to mid-40s. Thank you. You're on mute, Javier.

As we said before, our guidance is to roughly stable margins, which is 45, 46, where we were. So that's indeed the guidance that we have.

Okay, thank you. Thank you. Our next question is from Roman from Goldman Sachs. Please go ahead.

Hi, thanks for the call. A couple of questions. The first one is a follow-up on the growth in Poland. Your 10% volume growth guide in Q1 was presumably impacted by the leap year effects, colder weather, and Easter timing. Could you clarify in what scenario the growth rate for the rest of the year might accelerate from the Q1 level, and to what extent the lower end of your guidance incorporates potential volume softening from UK clients? and separately on their loyalty program and in post-pay, beyond improving checkout conversion, what additional monetization opportunities do you see and particularly for financial services or merchants advertising going forward? Thank you.

Happy to take the second one first and then heading over to Javier again.

The critical effect is that we increase the share of checkout among the merchants. What does it mean? For some of the merchants where we applied both impulse pay and loyalty program incentivizing end consumers to shop online with certain merchants, they realized their checkout rate went up by 30 percentage points, 30 percentage points, which is something that you cannot deny running a marketplace or running a shop. so the combination of the two is the most powerful advanced tool we have developed to help the merchants grow on the market and those who already are with us they already noticed that not only impulse pay but now a combo of impulse pay and loyalty program is driving their top lines. That's, again, a reinforcement of the statement. InPost has nothing to do with the logistics, nothing to do with just the last mile. InPost is all about helping the merchants run their business and improve their basket conversion, because the basket conversion is the main challenge for all of them. And yeah, that's in a nutshell. So just giving you a one case study on one of the vertical marketplaces where we applied both services just for three days MVP, the number of parcels that our consumer base has ordered from that merchant went up by 45%. Just to give you, you know, a point of reference. So we know still, we need to develop a lot of new features, but already those we have developed so far, are playing crucial role in in the strategy we enrolled here for for our consumers.

Yeah, Roman, I'll take the outlook question for Poland. So just to get the numbers clear on Q1, we're saying around 10% growth, which again will be significantly better than what the market will be doing. And for the full year, we're saying high single digit, low double digit. So it's pretty much in line what we're saying for Q1. With the same message, we will be taking market share in a market which we expect to grow less than that. What are the parameters which could be different in Q1 versus the rest of the year? Number one, as we keep always tracking, it's the e-commerce market development. We saw also last year at the beginning of the year, the assumption was slightly different than what happened across the market with a strong e-commerce market last year. We'll have to see how the e-commerce market develops this year in view of the comments also Rafael made on consumer sentiment and the rest of the quarters which hopefully will stabilize a little bit the volatile environment that we've been in in the last couple of months again strategically the key components for us to not sit here and wait but us to control our destiny is following our strategy selective continued apm deployment to make sure we're being close to the polish consumer almost all of which shop with us anyway. Making sure we keep on believing in quality that no one else can match was proven again by the peak period at the end of last year, where we were the only ones being able to deliver with late cutoff times. And then basically some key marketplaces having a benefit from that. And then basically we have to keep on working what Rafael just said, loyalty. So building loyalty with the consumer, the consumer knows that we are the preferred network and we need to keep on building on that. So that's what we control. The market, we don't control. And we also know that over time, we're becoming less dependent of some key customers and that keeps on being the same. So that's what we need to work on. And that defines the range between high single and low double digit.

Fair enough. Thank you very much.

Thank you. We will now move to our next question from Otman Breacher from Bank of America. Please go ahead.

Hello, Raphael, Javier, and Michael. Thanks for taking my questions. I have a few. First, on your action plan for 2025, you plan to now do a to-do delivery in France. I would assume that is a response to a demand from merchants maybe similar to the UK. So can you expand a bit, Michael, on what you plan to do there and how big you want to be in the Tudor delivery? Then again, Michael, on UK M&A, in case you'd want to acquire another logistics company here in the UK, do you have a preference between a minority or a majority stake? And then on cross-border, Can you update us on the progress you've done over the years and in 2024 in intra-Europe cross-border? How much does cross-border make up of your volumes in 2024? And I think you will connect the UK to the rest of your network in Europe. When will that happen and generally how should we think about growth in cross-border? Thank you very much.

Yeah, good morning. Thank you. Let me take that. Yeah, we plan to start to door deliveries in France in Q2, late Q2. The initial plan is really just to target somewhere between 40 and 60% of French geographic coverage. And I think as you flagged, it's a reaction to how our merchant relations are developing in B2C. Specifically, if you go into the smaller merchant segment, such as mid-market and SME, and in specific regions like Lyon, Toulouse, Marseille, and Greater Paris, there is clearly a demand from the SME merchant not just to have an out-of-home product, which is their preference, but also to ensure they have a to-door offer for certain parts of France where there's a demand. And the simplicity for that merchant is really having a one-stop shop. And so as clearly as our APM growth increases in France in particular. We're clearly getting a lot of demand now coming from that segment. That whole segment is an area where there's a significant growth opportunity, both in volume and margin for the future. And clearly, we want to be able to service the merchants with a single one-stop shop. Very, very similar to what we do in Poland today. But the coverage itself will probably expand to a maximum of about 60% because it's very targeted based on the merchant demand and regions that we want to operate within. When it comes to UK M&A, I think the specific question was minority. I think we've continued to see that that is a really good path for us. We saw with Menzies where we took a minority investment really to develop a partnership. But as our partnership evolved, we really saw the opportunity to take full ownership of parts of the Menzies business, but not all of it. As we go forward, I think M&A and investment in that way, it will continue to probably be an attractive way for us to, one, solidify a partnership and then to really evaluate whether actually an acquisition will be an attractive part. And I think sort of that's sort of how we think about the structure and approach. obviously in the uk today we have an investment that we've done into yodel in q4 and really we're working on the ground with yodel developer operations i mentioned this earlier in the call whether we decide that is then a full acquisition it's it's really too early in this partnership to make that evaluation but clearly we're very pleased with how the partnership has already developed quite quickly to really enhance our coverage. And moreover, one of the opportunities we see in Q2 is the immediate access to over 500 merchants that Yodel has integrated in the B2C environment. And really partnering with PayPoint together to really drive the out-of-home coverage across all of the UK as we see the demand continuing to increase for our locker solutions. And so this is really about not just about partnership, but also potential paths to cement speed to market that gives us competitive advantage. When it comes to cross border, we don't comment specifically on the volume mix and components within it. What I would say is that clearly it's a fast growing segment within the business. It has been not just in 24, but actually in 22 and 23, it's also been developing quite well. If you look at markets like Italy, I've said in the past, you know, Italy's growth has really been fueled by cross border. And now we see both a strong mix of domestic and cross border volume within it. So as a growth opportunity, it's still very early for us on cross border across the whole network, including Poland. But clearly we see it as a massive opportunity for the future. And we're still very early on it. And I would probably more comment our cross border volume in totality is more in sort of high single digit low teens than actually saying it's anything more significant than that at this point, but growing very fast in terms of that potential. The Q2 and the overall cross border solution for the UK is really in the second half of this year. And we'll start that phase early post-summer and really start to offer targeted merchants the opportunity to work on a cross-border basis, connecting both into the Mondial Relay Network and the Poland market, because clearly cross-border is a huge opportunity, not just in mainland Europe, but obviously the UK with all the challenges post-Brexit also. So we think we have found a very simple solution to enable that, and that'll be in the second half of this year.

Thank you. And on the total delivery in France, I would assume that you will do it yourself and not go through partner rights.

I think we will cement it quite fast speed to market with some small regional partners that we can enable this to do it very quickly, yes. So it's, to an extent, more smaller regional players than actually trying to organically build it directly. But it'll be a combination of both, not just one single solution.

Okay, thanks a lot, Michael.

Thank you. With this, I will hand over to Danielle for any webcast questions. Over to you, Danielle.

Thanks, Sergey. We have a few from the webcast this morning. Firstly, could you explain why you expect only mid to high single-digit volume growth in Mondial Relay Markets, while your APM network in Mondial Relay Markets is expected to grow in high double digits?

Yeah, I mean, yeah, I can come back on that. Thank you. I mean, really, it's fundamentally because of the mix of C2C and B2C. And clearly B2C is growing while C2C is quite stable. And C2C has had a dominant position in the overall mix. So clearly you see very high double digit growth in the 20s around B2C, but C2C not growing. But the overall mix itself clearly is in single digits in this element. But the reality here also on APM growth, you saw on the charts earlier that our APM distribution is only about 30% of the total distribution points. So we still have a huge opportunity to grow our APM network across those markets and clearly accelerating that and converting that from the legacy PUDO business is why those rates are at a higher level than the actual volume growth itself. Really, that's the simplicity of that solution.

Thanks, Michael. And our next question, what level of cost inflation per parcel and respective revenue per parcel do you expect in FY25?

Yeah, I'll take that. Look, if you look at what we've been doing in the last couple of years, in general, we follow or we look at the inflation, which is normally in the Eurozone, where it's Poland versus the other markets. Our basic strategy is that we price with inflation, but wherever possible, we don't pass full inflation on. And we're able to do that because we're focused on cost per parcel improvements and efficiencies. Which means that if you look forward also at our profit improvement, of course, our profit improvement is coming from gross margin improvement and then SG&A efficiencies, but mainly gross margin improvement. So I would say in Poland, you look at the inflation probably between 4-5% Eurozone, further than Poland, 2-3%. So what we want to do is to make sure that we keep our merchants happy, that we are not necessarily having to price everything through. And then the cost efficiencies, we need to keep on driving, which is, again, the whole flywheel and volume that we can drive to then keep our gross margin increasing. So that's our overall strategy, which has been successful so far.

Thanks, Javier. Now, does your volume guidance for 2025 and Q125 include recently announced service of price distribution?

I'll take that one. From the guidance point of view, if you look at the guidance we've given in the range, it's early in the year and we're not going to change that if we have new ideas. What I think is important on the now service of the press distribution, it shows that we keep on looking for opportunities which will give a benefit to both merchants and to consumers. And servicing basically press distribution is one of those ideas where we can create again a new revenue stream where we can again prove that we are building and building new services to the market. So I would say this is not a question of guidance in or out. And the first year might not be the biggest item we have, but it's important in terms of always bringing new ideas, new innovation and new opportunities to the market. And then it's part of building in the guidance of the high and low end will be part of that guidance.

Thank you. What are the plans for expansion into the USA?

Happy to answer that question. There are no plans, zero plans, and we have full focus on the key geographies we operate for many reasons, but the key one is this is an enormous opportunity. UK is six to seven times larger opportunity than Poland for InPost. France, Italy, Spain combined is another eight times bigger market opportunity than Poland. So we already became number three in the geographies we operate. We definitely want to become number one. And the opportunity underlying there is massive. We don't want to be distracted.

Thanks, Rafael. Now, can you comment on customer retention or loyalty in the UK market, i.e. repeat customers, average parcel per customer? How does it compare in C2C versus returns?

Yeah, given overall, I can't comment on certain specifics because we don't disclose that, but I think probably I would frame it this way. I think two things that are quite important. One, we see generally actually across C2C and returns, it tends to be around two parcels per week per consumer to give an idea of what we see as a general traction. And clearly that has increased slightly as the network has continued to grow, but that generally gives a good average. And again, it's an average. It's not the complete distribution. Again, when you look C2C in returns, it's quite similar. Different behaviors between drop off and pick up and actually on C2C than when you look at that across the average as well. But again, I think the other important data point that I flagged earlier in the presentation, I think what we see as we roll out our app, we're seeing more and more users and more repeat usage of those that use the app than those that don't use the app. So clearly we're seeing a highly engaged population base with that. So I think the initial data, again, very early, is we're seeing sort of a 50% improvement in those that use the app than those that don't use the app, to give you an example. So again, early indicators. But if you look at the average shopper online within the UK, that's generally doing about two and a half parcels per week. Again, we're nearly approaching the average of the UK and still very early. So clearly, as the more users we grow through either merchant acquisition or product development, Clearly, we're seeing the benchmarks being very much around where the UK e-commerce population is. So that definitely defines the opportunity as growing the network, grow the merchant base, increase the offering. And clearly, those numbers demonstrate that we'll get very high market penetration.

Thanks, Michael. Next, who will be your main competitors in to-do delivery in France?

The main competitor now in France is La Poste. So, you know, we've clearly over the last three years gained significant market share, created quite a significant gap between us and then sort of third and fourth player in the market. You know, but clearly our competitive advantage is really about leading without a home, leading with lockers, where we, you know, have the largest network in that market now. And clearly we're seeing the consumer adoption of lockers growing quite rapidly in France because lockers, out of home was already well penetrated really the to door competition is not really how we look at it it's about the complete service offering of which we will lead with lockers but clearly now merchants in france going forward will now have the opportunity to use to door solutions not just out of out of home and that gives us an even a greater opportunity to take a larger share of checkout for those merchants as well going forward thank you

How much do you expect APM volume as a percentage of total to be for Mondale Relay in 2025?

We're not commenting specifically on that share, but what I would say this year, clearly we are going to grow our APM network even faster than we have in previous years. And for the first time, our APM network will overtake our actual PUDO coverage in France. So I would expect that growth to go probably north of 40% in terms of direction, but I'm not going to comment on Pacific ranges at the minute. because actually what we're also doing is optimizing the network and actively closing PUDO locations in France this year for the first time as part of that change in volume dynamic with the growth of the APM network. And that'll be an important tipping point this year in the market, because clearly then that locker density and locker coverage in terms of acceleration, as well as the closure of PUDO points, will start to obviously enhance how we think about our unit economics going forward also.

Thanks, Michael. And it appears that's all we have time for. So, Raphael, I'm going to hand back to you for closing remarks.

Thank you. Thank you very much. Thank you for joining. So very quickly, I kind of wrap up. I guess the noise around the relationship with some of our clients is a dominating concern, which I get. But I suppose, you know, the nervousness of our friends from the most significant marketplace comes alongside with a visible acceleration of the performance in Q1 based on the base linker data. But I don't want to be as arrogant as some of the managers in the marketplace. A visible lack of leadership as Roy is departuring, unfortunately, for Allegro. And I think, you know, claiming that you will replace InPost in the light of still three years ahead of the existing contract is like announcing you have become a candidate in the presidential election, which will happen in three years and you for sure will win the office. We may and can steer the traffic of our consumer base with a loyalty program and impulse pay. And we have already tested that successfully and it's already visible in Q1. That's why we will continue to focus not on the noise, but on our consumer base. And it's us being in control of our destiny, not the others. And we will prove it quarter by quarter very soon. The thing I can promise to you is very clear, guys. We will not slow down in our efforts to become a real market leader of Europe. Looking ahead to 2025, we are fully committed to sustaining this momentum by focusing on the three strategic initiatives, which, you know, Poland definitely will continue to enhance our APM network and digital services, such as Impulse Pay and the loyalty program, but also introducing new venues for our future growth, like we already proven with Eco Returns, with the subscription of the magazines and with the cross-border to strengthen customer and merchant engagement. And more to come, by the way, still in 2025. France, literally, like Michael said, our efforts will center on acquiring the B2C merchants, launching to-door delivery services, and investing in quality improvements for faster deliveries, which is already a massive milestone versus what we saw when we took over Mondial Relay a few years ago. And of course, UK. It's the market for us because of the size, because of the early adoption willingness among the breeds. We plan to accelerate local deployment, expand the B2C merchant base, and develop as well the new services that we have already developed in Poland, because that will definitely optimize the network utilization for greater efficiency. So additionally, we aim to broaden the cross-border offerings, integrating the UK into that existing network. And of course, provide a very good, very seamless services across all the markets, which we know is the key driver for the international market places. And all these strategic initiatives are literally designed to position us for sustained growth and market leadership in these key regions. And we are absolutely confident that we will deliver strong results and create significant value for all our stakeholders like we do continuously. So thank you for your continued support, guys. Thank you for joining us today. See you soon.