Martijn de VriesPostNL

e-Commerce@AMS

e-Commerce Afternoon

Introduction PostNLa key playerin cross-bordere-Commerce

Martijn de Vries

November 1st 2016

About PostNL

• Revenue €4,251 million

• 56,221 employees

• 142 million parcels

• 2,705 million addressed items in NL

• Market leader Benelux

• Strong local foothold in Germany (Postcon) and Italy (Nexive)

• Via Spring presence outside the Benelux in Canada | France |

Germany | Hungary | Hong Kong | Italy | Russia | Singapore |

Spain | Switzerland | United Kingdom

Each day, we deliver 1.1 mio items to 190 countries.

Cross-border e-Commerce

Market - Main destinations per origin country

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Origincountry

Top destinations per major exporting country

Canada* UK China

Germany France Ireland**

USA UK Japan

France UK NL

China USA Korea

UK Germany Belgium

China USA Korea

France UK Germany

USA ROW***

UK Germany Finland

Belgium Germany UK

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PostNL combines it’s expertise of combining

delivery networks,

postal and

commercial, to the

main destinations of

customers

Cross border e-Commerce

PostNL - Key trade lanes based on revenue

China – ROW

Continuous significant growth

• Expand strengthen

regional Sales and

Business Development

• Product expansion: DDU,

Over 2kg

• Ops: Increase efficiency

and reduce handling,

Reduce misroute & no

scanning + manage

Peakseason

• IT: Simplify the work

procedure & let PostNL

product more easy to use

China – ROW

Key success factors

Key enablers

Intra – EUR

Managing an integrated broker network

Promise to the market

NL – ROW/ChinaBackground and positioning PostNL

• Milk powder scandal in 2008 in China has led to significant import flow

• 95% of imported goods worldwide for China via Postal channel

• For Chinese customs import through Postal channel to much of ‘black box’ and pushes for alternative channels

• Strives for clear split: Postal for Personal use/C2C vs Alternatives for B2C

• PostNL developed ‘Direct Parcel proposition’ (now onboarding customers)• Focusing on different customer base;

• Brands, direct sellers

• Full product offering

Umfeld

Import channels

Positioning PostNL

NL – ROW/ChinaCommercial in favour for transit time and costs

• Dedicated Customer service for China• Dedicated 1st and 2nd line support, incl. Chinese native speakers

• Direct access to Customer services of network partners and to our local China

(operational) support team (Shanghai, Shenzhen)

• Dedicated approach and procedures

• Direct infeed in outsourced operations at Schiphol Airport

• Dedicated China process

• Deep sorting possibilities

• Direct injections into China

• Capable of handling +100% growth

• Fully geared to handle (sales) peak volumes

NL – ROW/ChinaDedicated operations and processes

In order to maintain (Milk in) Postal route, improvements are needed for

Customs purposes, whilst keeping ‘it simple’ for the market (buyer and seller)

Network/ProductChina/US -

EURIntra - EUR NL - ROW

Mail / Postal Network

- Packets (2kg) √ √ √ √ √ √

- Parcels (20kg) - - √ √ √

Commercial Network

- Parcels (30kg) √ (DDP!) √ √ √ (Network!)

PostNL service offeringWhat product in what network?

Packets, what & the role of PostNL

Packets, cross border flows

Other, e-Commerce fulfilment and collection option