Inpost Sa

Good morning, my name is Gabriela Burdach and I'm the Investor Relations Director at InPost. Welcome to InPost first quarter 2025 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 the slides, we will have a Q&A session. Today's presenters are Rafał Grzoska, 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 very pleased to report a strong start to 2025 for our impulse group. Our Q1 performance reflects the strength of both our Polish operations and our international business. We are seeing robust growth across the board, highlighted by 22% year-on-year increase in revenue and an even higher increase by 29%, excluding currency effect. In Q1, we increased group-adjusted BDA by 24% and improved profitability across all segments, which Javier will describe in more detail later. Our recent acquisition of Yodel strengthens our foothold in the crucial UK market, increasing our market share there to 8% and setting the stage for further expansion. Michael will discuss progress on this new project as well. The chart you're seeing in the middle will look different next quarter, as with the inclusion of Yodel, our international business already accounts for over half of InPost's revenue. Let me now share some updates on our network development. Our momentum in APM deployment continues to accelerate. In Q125 alone, we added over 3,000 APMs, an impressive 32% increase, bringing our network to 50,000 machines. This solidifies our position as the largest independent locker network in Europe and underscores our commitment to providing convenient and sustainable delivery solutions. We are also optimizing our PUDO points network with a particular focus on automation, especially in France. And as a result, the number of PUDO points remained stable year over year, which aligns with our strategic goals. Let's move to the next slide, which addresses market trends. As in previous quarters, we continue to expand our market share across all key regions. In Poland, the e-commerce market grew at a rate of 8% in Q1, driven to a larger extent by intangibles, which means the tangible market growth rate is smaller than the average. Despite the softening market, our volume in Poland increased by 10%, even against the very high base of 2024, which saw a boom in international marketplace activity. In Eurozone countries, our growth has again significantly outpaced the overall e-commerce parcel growth. Notably, volumes in the strategically important B2C sector have risen by 29% and APM volumes have experienced dynamic growth increasing by 70%. In the UK, the largest e-commerce market in Europe, our volumes have grown by an impressive 39%. With our recent acquisition of Yodel, our volume in the UK would be over three times higher. Let's turn our attention to Poland as the key market for impulse where we are continuously improving user and merchant loyalty. As you can see, we have significantly expanded our network, adding 15% more APMs year over year, reaching nearly 26,000 locations in Q1 2025. Despite a very high comparison base from last year, we've achieved solid parcel volume growth with a 10% increase in Q1 and reaching 174 million parcels. The faster APM growth compared to Q1 volume is primarily due to the phasing of our deployment strategy. We secure the most valuable locations at the beginning of the year and closely monitor utilization rates for each APM. It's worth noting that locker volumes are growing faster than to-door deliveries and including redirections. This growth aligns with overall network expansion. This once more highlights the increasing popularity and adoption of in-post lockers, especially among international marketplaces. Now let's talk about the strength of our customer base in Poland. I'm pleased to share that we continue strong growth in our user base and user loyalty. Our APM user numbers are up 7% year over year, reaching nearly 20 million. That figure increases to 24 million when we include all users along with two-door customers. Despite these already impressive numbers, we are still attracting approximately 200,000 new users every single month. We know our users well and we understand that they don't shop at just one particular website. In fact, 90% of our loyal users shop at 11 or more e-commerce stores and they prefer InPost APM as delivery option at all these stores. This diversification highlights the convenience of impulse within the broader e-commerce ecosystem, making us the preferred choice for customers regardless of where they shop. Finally, I'm very proud to share the latest Kantar survey results. InPost maintains the highest and unmatched net promoter score for lockers in Poland with an impressive score of 77. Importantly, this is based on independent research. This high NPS truly reflects our commitment to quality, convenience and customer satisfaction, reaffirming our position as the leading e-commerce enabler in Poland. Let's move on to the next page. A critical element of our success in Poland is our strong and growing relationships with merchants. We are proud to serve over 55,000 merchants and we are continuously working to expand and deepen these relationships. We've recently signed a new pan-European agreement with Vintage, further enhancing our presence in the pre-owned fashion market. We've strengthened our cooperation with Amazon in Poland by shortening delivery cut-off time. We are seeing wider adoption of impulse pay by merchants, which further simplifies the checkout process for consumers and drives increased sales for merchants. Currently, over 2,000 merchants are integrated with Inputs Pay, including 20% of our top 100 merchants. By the end of the year, we plan to have 40% of our top 100 merchants using this service. I'll now hand over to Michael for an update on our international business. Thank you.

Thanks, Rafael. Good morning, everyone. Q1 25 has been another strong quarter for the international business. We continue to accelerate our flywheel across all of its components and all our markets. I'll start with the Eurozone segment, which includes all international countries except for the UK. Please note that these Eurozone slides include a combination of Mondial Relay and Italy for the very first time. In the Eurozone, we've expanded our network by 6,000 out-of-home points year-over-year, including 5,000 APMs. Just to give you a sense of how fast we're growing in this space, in Q1, we were opening circa five times more than our nearest competitor at 113 APMs weekly, while all the competitors together in the Eurozone were opening 22 weekly on average, just to demonstrate the pace and execution of our deployment. As a result, we increased population coverage in all regions, as you can see on this slide, which measures the percentage of the population living within a seven-minute walking distance from an in-post location, offering greater convenience for our customers. As Rafael mentioned, in all our markets, we continue to grow our volume above the market rate, taking market share from legacy incumbent players. However, what we're really satisfied with is the flow rate to APMs that we've observed. In Q125, almost 40% of all parcels were delivered to APMs. That's compared to over 20% a year ago and 11% two years ago. That's significant progress as we observe the parcels going to APMs as we continue to automate from our out-of-home network converting from PUDO to APM. We expect this flow rate should only continue to improve. On the next slide, you can see on the left-hand side of the page, we can see the continued growth of B2C. The first quarter of 25 was a 29% increase in B2C growth, continuing the trend we observed in Mondial Relay markets from before. We are strengthening our merchant base by adding new merchants in the first quarter, primarily SMEs, but also well-known brands such as Calcedonia and Icewatch. We continuously work on quality improvement. This is a key part of our transformation of Mondial, and we've increased the share of B2C parcels delivered in D plus one by four percentage points year over year to 65%, all while experiencing growth in both the number of parcels and the number of merchants as we strive to deliver a consistent high quality next day offering to the market. This has allowed us to attract and build upon the number of new users of APMs and our mobile app. Since we see that the mobile app is a great tool our users love it, ordering 40% more than non-app users, we plan to roll out it to two new markets by the end of the year. I'd also like to highlight the significant brand success we've achieved. According to Kantar and OpinionWay surveys, we've seen improved performance in the MPS in France. A reflection of the improvement in network and quality, as mentioned earlier, and the Mondial Relay brand is now amongst the top 50 valued French brands. This is a prestigious achievement, especially since we're the only logistics company on that list, standing among brand champions well known to people from all around the world. On the following slide, let's now focus on our cross-border activities. There are two crucial points here that I'd like to make. First, the cross-border share in market volume is around 30%, and according to market research, it's expected to grow significantly year over year at a rate of 30%, whilst local e-commerce is estimated to be flat. This represents a substantial opportunity for disruption and profit pool capture for Impulse going forward. Second, our market share in cross-border partials is already at the level of 7% to 10%, depending on the country we operate in. We already established in the minds of the Eurozone consumers and merchants, and it's time to accelerate our efforts in this field. We'll be strongly focused on implementing cross-border initiatives and plans. These include the unification of UX to improve our customers' experience, wider international merchant adoption, enhancements in further logistics coverage and quality, and last but not least, expanding into the UK cross-border market in half to 25. E-commerce is a borderless experience for consumers. Our tech enablement, single merchant integration, and consumer-centric focus put us in a strong position to capture share, but also to disrupt the legacy profit pool of those that have enjoyed charging 25 euros per parcel as we target six euros as the optimal price. On the next slide, I'd like to highlight a further two things, specifically now starting to think about the UK and the progress that we've made. In the UK, we've deployed over 3,000 APMs year over year, marking a record high expansion driven by increased independent APM deployment and continued progress with key chain partners. Similarly, to Eurozone markets, we are adding many more APMs than our competitors. In Q1, we were deploying over 70 APMs per week in the UK, while our competition has been less than 15. Including Yodel, which we acquired at the end of April and will consolidate starting for May, our network is now number one, not only in APMs, but also in terms of all out-of-home points. Thanks to the acceleration in APM deployment, we've observed a significant improvement in the quality KPI related to free compartments, reducing instances where a courier or customer cannot place a parcel in the APM. Our in-post UK volume in Q125 grew by 39% year-over-year, and on a pro-format basis, including Yodel, it grew over fourfold. This gives us visibility into how much network we need as our medium-term plan is to transfer some of the to-door volume to our APM network. With the Yodel poodle points, our network coverage has increased to 75% in the top three cities and over 50% for the entire UK. On slide 16 here, I'd like to highlight two important key points. First, our organic process. We added 40 new B2C merchants in Q1, ending the quarter with over 260 partners, including return contracts. We're very pleased with the share of checkout on our new clients, reaching up to 50% in certain cases. We also now have 2 million app users who order 50% more than non-app users, a trend we continue to see as we expand this across not just one market, but all markets, and 42% more APM users. So we can say we did make a big progress in the user base area. Second, the acquisition of Yodel takes us to another level of the customers and merchants cooperation. Yodel cooperates with over 500 merchants and their mobile app has been downloaded over 7 million times. Our plan for integration is well underway, and as we speak to merchants jointly about what those plans can and will be, we'll provide more details of this in our half two results. We can already see the effect of the acquisition has on our merchant base. We are receiving positive feedback on the comprehensive product suite, and we've accelerated negotiations with key strategic retailers. From the latest wins, we are the preferred out-of-home delivery provider now for ASOS, which is a huge success. And also Rafal mentioned the new agreement with Vinted on his part of the presentation. And again, I'd like to highlight this agreement is not only for Poland, but for all our markets. I will now hand over to Javier to take you through the financials.