Inpost Sa

Good morning. My name is Gabriela Burdak, and I'm the Investor Relations Director at INFO. Welcome to INFO's second quarter 2025 earnings call. As usual this time, today's call includes forward-looking statements that are subject to risk, and it is possible that the actual results may differ materially. This call is also being recorded, and the recording will be available on our IR website shortly after we wrap it up today. After this time, we will have a Q&A session. Today's presenters are Rafał Przocka, CEO, Michael Routh, 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. Q2 marked a strong step forward for InPost. We are not just maintaining momentum, we are accelerating across Europe, and that's a fact. Our group volume in Q2 increased by 23% year-on-year with a quarterly volume of 324 million parcels. Group revenue was up 35%, reaching 3.5 billion zloty. Importantly, for the first time, more than half of our revenue, 52%, is coming from our international business. with the UK accounting for 27% of group revenue. This showcases the successful diversification strategy that we have mentioned in previous quarters. Group adjusted EBITDA reached 1 billion Polish zloty, translating into a margin of 28.3%. If we exclude the expected impact of Yodel, our group margin hit a record high of 35%. I would highlight three key drivers that allow us to hit this new milestones. First, merchant diversification in Poland is allowing us to continue outpacing market growth by boosting profitability. Second, B2C and APM volume continues to accelerate across the Eurozone. And third, a number of recent strategic initiatives are helping us to strengthen our pan-European footprint. The Yodel acquisition is giving us a large step up in scale and access to Tudor volume in the UK. The sending acquisition is strengthening our footprint in Iberia and again completes our offering by concluding Tudor delivery. And our strategic partnership with Blockit will enable a faster network expansion across all markets. Michael will tell you more about our recent M&As in this part of the presentation. In summary, Q2 was yet another step in building a truly pan-European leadership position. Let me now share some updates on our network development. Our network is going from strength to strength. In Q2, we deployed a record high, almost 3,500 APMs, ending the quarter with over 53,000 APMs across Europe. Poland remains our backbone with nearly 27,000 APMs, but the real story is Europe with now over 15,000 APMs in the Eurozone and over 11,000 APMs in the UK. By accelerating our scale, we are providing increased convenience for millions of customers. And our total out-of-home network, including pick-up points, now exceeds 88,000 locations. Within that large footprint, we are optimizing put-up points in some markets as part of our strategy focused on convenience, quality, and efficiency, not just quantity. The bottom line? InPost is the APM and leader across our European markets, and we are continuously widening the gap versus competition every quarter. Let's move to the next slide, which covers market trends. When we talk about outperforming the market, this slide says it all. Across Europe, InPost continues to deliver growth ahead of industry trends. Let's start with Poland. Despite quarter-to-quarter volatility, we are growing ahead of the market, maintaining a stable share in a dynamic environment. Looking ahead, we expect the market to bounce back in Q3. We expect inputs to outpace the market, bringing volume growth back to high single digits. In the Eurozone, the momentum is clear. The market grew 5%, with inputs growing 10%. which is double the market pace. In Q3, we expect to further accelerate. And the UK is the standout in Q2. On a reported basis, volume soared 177%. Even on a like-for-like basis, adjusting for Yodel in last year's base, growth was still an impressive 24%. This compares more than favorably versus a market that's slightly down overall. With that, let's now focus on Poland on the next page, our core market, where we are driving further diversification with above-market growth while expanding profit margins. Last quarter, we expanded our APM network to nearly 27,000 machines, which is up 14% year-on-year. When it comes to locker capacity, the picture is clear. While we have roughly 50% of all APMs in Poland, our locker count is higher, representing around 70% of total capacity. This scale advantage enables us to deliver better service, faster delivery and unmatched convenience. What's even more important, despite network expansion, utilization remains at very high level. This underscores the strength of our model and the efficiency of our operations. Let's move to the next slide, which highlights how diversification in Poland is boosting profitability. We delivered solid volume growth with a total volume of 181 million parcels, and this is on a high base and in a dynamic market environment. What's more important is the composition of this growth. Non-marketplace channels grew 17% year-on-year, proving our diversification strategy is working. We are becoming less dependent on top marketplaces and we continue to build a healthier, more balanced merchant's portfolio. This is translating directly into profitability. While revenue per parcel grew 1%, adjusted BDA per parcel increased 6%. even as we continue to expand the network ahead of volumes. This is a testimony of our operational discipline. We are not just growing, we are growing smarter with a focus on diversification, new channels and margin expansion. To zoom in a bit further, let me discuss the dynamics of non-marketplaces and marketplaces in the next two slides. Let's first talk about the strength and the accelerated growth of our non-marketplace strategy. In Q2, while the Polish e-commerce grew about 5%, our non-marketplace volume increased 17%, or at more than three times the pace of the market. This acceleration is driving by both existing and new merchants. We added around 2,500 SME merchants year on year, and they accounted for more than half of this growth. We are also increasing our share of checkout in the non-marketplace channels, proving that Influx continues to be the preferred delivery option for the Polish consumers. We are building stronger, more diversified and more profitable business, one that's less dependent on any single platform and better positioned for sustainable growth. Now let's turn to the marketplace. where in Q2 we saw volumes take a bit of a breather. As you know, our main partner in Poland has recently decided to broaden their logistics options. We completely respect the fact that the large platforms want to diversify, we understand the approach, we just don't love the style. They announced it openly at the beginning of the year and started pushing to change consumer habits, tricking users to choose other delivery companies against stated user preferences. In fact, last quarter Allegro really stepped up their efforts trying to redirect parcels from impulse to their own Allegro One box. Not a huge surprise, but if you looked at the social media in Poland, you saw plenty of frustrated customers. At one point, we estimate that even 30% of our Allegro parcels came with a suggestion to change the delivery option, even when customers had clearly chosen in-post. First of all, we believe this practice doesn't just bend the rules of our contract with Allegro, but is against the very basic consumer right to have a parcel delivered to the APM of their choice. That's why we have started legal action to stop it. Second, The real effect on our business was small, only less than 2% of volume was shifted. Interestingly, out of this 2% parcel, more than 80% went to Allegro's one box, while other Allegro partners were barely promoted, despite having larger out-of-home networks. What's more interesting, These redirections into one box hit all delivery companies, not just InPost, including Allegro's own delivery partners. It is important and very encouraging to see that our loyal user base is increasing year on year and that the majority of the users who switch delivery methods are lower frequency shoppers, so-called soft users. This means our business is very resilient and it proves once again that our strategy, building a wide and loyal customer base, delivering top quality service and obsessing over user experience is not only sound, it's paying off. To build up on the previous point on strong brand loyalty and consumer engagement, let's turn to slide 12. In Q2, APM volumes grew by 6%, reaching nearly 146 million passes. But the real story here is that 70% of this volume came from our most engaged users, those who regularly use lockers. Notably, this group of users is growing faster than any other. So what I want to convey to you with this slide is that most of our APM volume made by users who are in single platform shoppers 90% of them order from more than 10 different stores and 60% from more than 20 stores what is more is that their parcel the user ratio remains stable that means Our customers are deeply integrated into the broader e-commerce ecosystem, and within that ecosystem, Inpulse is their delivery partner of choice. Next slide, please. To wrap up the discussion on user loyalty and being the partner of choice, let's once more look at our NPS. We are ranked number one by merchants, trusted by a network of over 50,000 partners. Our net promoter score among merchants stands at 50, the highest in the industry. On the user side, loyalty is even stronger. Our APM NPS is 77, far ahead of competitors, and our internal NPS reaches an impressive 96. This reflects the trust and satisfaction customers place in our service. Our app is a key driver of this engagement. We now have 14.6 million loyal app users representing more than 70% of APM customers, and these users generate about 80% of our total volume by ordering more than non-app users. Infox Mobile App is ranked number one in its category in reinforcing our leadership in digital experience. On slide 14. you can see a summary of Input Pay and our loyalty program. Input Pay, with its one-click checkout, is driving conversion rates above 50%. We are seeing both the number of users and transactions grow every quarter. Today, we already have over 9 million registered users and 2,400 merchants integrated, making this a powerful lever for growth. In the first half of 2025, There were six times as many impulse paid transactions as in the same period last year. Our loyalty program with 12.4 million users is driving engagement and adding incremental volumes. And one of recent example is our AD initiative. We've started deploying defibrillators next to our lockers and users can donate their loyalty points to help fund that. In just one month, users contributed over 100 million incomes to support this life-saving effort. Innovations like this strengthens our ecosystem, deepens customer loyalty, and captures more parcel growth. And this is just the beginning. You'll hear more about new products and innovation from InPost soon. I will now hand it over to Michael for an update on our international business. Thank you. Thanks, Rafa.

Good morning, everyone. Across our international business, the pieces of our strategic puzzle are nicely coming together. Network density, growing B2C adoption, and a broader product suite are driving strong momentum. Q2 2025 was a solid quarter for all markets within our international segment. So let's start with the Eurozone, where we're expanding well ahead of the market and delivering robust profitability. Our Eurozone strategy is working with all key elements of our proven flywheel in motion. We continue to focus on scaling operations, enhancing logistics quality, and expanding network density. In Q2, we expanded our Eurozone network by nearly 6,000 APMs year over year. While we continue to add new putter points, we're also closing those located too close to our APMs as part of our network optimization strategy, with already over 2,500 closed year-to-date. Across the Eurozone, we are the number one locker network. Parcel growth in the Eurozone is significantly outpacing the market, with total volumes up 10%. APM volume rose by 59%, significantly faster than the rate of compartment deployment, and hence indicating higher machine utilization. Thanks to greater APM adoption, over 40% of all out-of-home volume was delivered to lockers, up from 28% last year. We also continue to see strong growth in strategically important B2C segment, which increased 27% in Q2, driven by both international and domestic marketplaces. And we're improving logistics quality. 67% of Eurozone B2C parcels were delivered in B plus 1. On to the next slide, please. So, as you know, organic growth is key for us, but we also expand through opportunistic M&A. In July, we acquired Sendi, a logistics delivery provider in Iberia, specializing in fast door-to-door B plus 1 parcel delivery across Spain and Portugal. This acquisition has brought to the Iberian Inpost offering full nationwide coverage, including the Canary and Balearic Islands, expanded logistics capabilities with 16 owned depots and over 130 rented ones, plus access to a full last mile courier fleet of over 1,400 drivers. Moreover, it brings also strong relationships with both large and small merchants in the region, positioning us to accelerate our expansion in Liberia, one of the fastest growing markets, supported by a promising macroeconomic outlook. And really, we're excited by the opportunity in our sentence provides us within that region. This next slide is extremely important, and I'm proud to share it with you today. Yesterday, we closed a minority investment in Blockit, signalling a commitment to the future of battery-powered ATM technology. Together with Blockit, we're now ready to roll out a new type of AI-led ATM that we've been working on together for over the last 12 months. These units operate without the need for infrastructure or solar panels, allowing us to deploy them in highly attractive, yet previously inaccessible locations, particularly in city centers in the Eurozone and UK areas. This not only extends our reach, but also significantly reduces the deployment costs. So, let me give you a sense of its importance. In the UK cities, we've had to reject over 10,000 locations in the past two years because they weren't suitable for deployment often with issues like lack of power, connectivity, or expensive deployment costs. Now, we've been able, with this investment and partnership with Blockit, to overcome these challenges. So, although this slide sits in the Eurozone section, we'll also deploy these new APMs in the UK, as I've already mentioned. In fact, we plan to add 20,000 battery-powered machines on top of our existing plans for standard APMs across the next five years. with already 2,000 of these units to be added already this year. Now, let's turn to the UK, where together with Menzies, Yodo, and our nationwide coverage, our market disruption accelerates. We deployed over 3,500 APMs year over year in the UK, setting another deployment record. This growth was driven by both independent APM deployment and continued progress with key chain partners. In terms of network, we're still outpacing competitors by a wide margin, and we continue building on our first mover advantage. In Q2, we deployed 85 APMs per week in the UK, while key competitors averaged around 11. This acceleration in locker deployment has helped ease network saturation that has been above a non-sustainable 100%, giving us the capacity for future volume growth and improved consumer experience. It's clear our flywheel is working in the UK with unit economic supporting margin improvement. However, more on that in the financial section presented by Javier to follow. And so the next slide, and to one of the most frequently asked questions I get, how is the Yodo integration going? On that, we're focused on five key pillars of Yodo's transformation, and you can see the progress now laid out on the slide. is what we call One Network. This is about fully consolidating the inputs and the yodel logistics networks to unlock efficiency, primarily in the last mile. We're on track with the consolidation to complete mid-September and the opening of a brand new sortation location in the Midlands and over 5,000 routes being removed and optimized to drive down at better cost per parcel. The second is standards. This is about transforming operational discipline and governance in a business that has been well underinvested in for years. We've established a strong operating rhythm already to emulate the info standards that we have across the group. And our group operations center of excellence is supporting and rolling out the critical standards ahead of peak 25. And this will continue throughout 26 as we deploy mechanization and process adherence across all the legacy locations. The third is sites and overheads. And already, as part of this program with transformation since we took ownership in the middle of Q2, we've consolidated our 12 to 16 depots so far. The fourth is volume and brand. Our goal is to be the unique one-stop shop for UK merchants and drive that out-of-home and locker adoption. We secured exclusivity and co-branding deals already with some of the leading UK merchants. And this month, we'll start the rebranding of Yodel. with full brand conversion in early 26. Plus, we've already launched a redirections pilot, as you can see directly on the Yodel app. We have strong conviction in Yodel's transformation and margin improvement in the medium term for the total UK business. And this final pillar of out-of-home conversion, and one that I'll cover in more detail in the following slides, but is an important first step to build on the app redirection. But also, we've been focused on restructuring and aligning the cost of the footer points to be more in sync with the in-post terms. So, on the next slide, I'd like to point out two things. First, our volume growth in the UK is far outpaced in the e-commerce market. Reported volume rose by 177% thanks to the consolidation of Yodel since May. But even on a pro forma basis, our apples to apples, we saw a 24% increase in volume. That's an outstanding result, especially considering the market has been flat or even slightly declining based on different reports. Second, we're capturing more to-door and B2C volume, which creates an opportunity to convert those deliveries to out-of-home. Our goal is clear. We're shifting towards out-of-home with a greater addressable market to target with the acquisition of Yodo. I must stress, InPost UK is not building a traditional to-door business. Instead, we're developing an out-of-home model focused on parcel lockers and pickup points and working with merchants to convert existing to door volume to out-of-home due to higher MPS and cost benefits as demonstrated on the following slides. So, let me highlight two more things here. Since acquiring Yodel, we haven't lost a single merchant, quite the opposite in fact. New merchant winds have accelerated. We've secured major new wins for both outbound and returns volume, including ASOS, ARCHET, COST, and Cycling Revolution. We're making solid progress on checkout visibility, which is a key part of the disruption. You can see a great example in this slide of how we've presented in one of our partnerships. With a slogan like that, it's hard not to choose us. And in that example, we're launching a case study to the market as we've exceeded 45% share of checkout. demonstrating with the right merchant placement and execution, locker usage is winning with the UK consumer. On the next slide, it really shows our focus on the user experience is paying off and will continue to be our overriding North Star as what we've seen and built previously in Poland. According to the latest Tantor survey, we're now number one in terms of MPS and number two as the top choice for parcel delivery. That's a huge achievement, especially considering our customer base is growing fast with APN users up over 40% year over year. However, together with Yodel, we've now surpassed 10 million mobile app downloads. That's a huge, large user base for us now to build upon, and we're in a strong position to keep disrupting the market and to develop our out-of-home business model. The acquisition of Menzies and Yodel in the past 12 months have now firmly cemented our UK market position and accelerating the journey of converting Europe's largest e-commerce market on a locker revolution. I'll now hand over to Javier for a financial update, and thank you.