1. Magyar Posta focusing on regional B2C
parcel distribution
EastLog Congress, Praha, 27-29 May 2009
Levente László, int’l sales executive

2. 1 CEE Europe and Hungary
2 Briefly about Magyar Posta
3 Briefly about International Business Unit
4 Briefly about CEE Competence Center
5 What makes us different ?

3.  Europe and CEE

4.  Hungary and CEE market size (inhabitants)
COUNTRY POPULATION
An average of 60-75% of the
population is living in urban Bulgaria 7’700’000
areas. Czech Republic 10’200’000
Hungary 10’000’000
Poland 38’200’000
Romania 21’700’000
Slovakia 5’400’000
Slovenia 1’990’000
TOTAL 95’190’000
source: Study from PriceWaterHouseCooper, 2008

5.  Briefly about Magyar Posta
Hungary Postal network
 93.000 km2  Headcount: 35,000 employees
 10 million  Network: 2,744 fixed + 356
inhab. „mobile” post offices
 3 500 (serving 1000 settlements)
localities
The Company Core business
 Corporatized in  Mail : 1,6 billion pieces / year
1993  Parcel : 5,2 million pieces / year
 100% state-owned  Financial trans.: 335 million / year
 Designated USP  Revenue: 765 million EUR (2008)
Ildikó Szűts,
Business Units
CEO
Domestic Domestic
Corporate Private International Logistic
Customers Customers Customers Systems

6.  International recognition – World Mail Award 2009
Magyar Posta for its transformation from a bureaucratic
postal organization to a customer orientated service provider.

7.  Briefly about International Business Unit
 International Business Unit is responsible for all international
mail (letters, parcel and express) activities of Magyar Posta
History Established as business unit in 2004 to support
the international activity of Magyar Posta.
To be recognized as Competence Center
Vision for CEE – for international postal
services in the CEE and SEE countries.
(1) international activity based on partnership
and bilateral agreements Botond Szebeny,
Exec. Director
Priorities (2) Leverage among the different sales channels
and solutions
(3) One Point of Entry to CEE-region for
international postal services

8.  Activity of the International Business Unit (overview)
Be the CEE Competence
Center for our customers
Earning the right to play
Traditional on international market 2009 - 2012
international
mail business 2005 - 2008
- 2004
• strategic partnerships
• improving distribution
quality • implementing different
sales & distribution
• outbound and • joining REIMS-East channels
inbound activity
• joining IPC-IDM •implementing a suitable
• UPU products • joining IPC-EPG product portfolio
• improvement of the •implementing a low cost
product portfolio CEE logistic network
• joining Pay-for- • focusing on the
Performance EMS customers’ needs
• bilateral agreements &
partnerships

9.  International recognition – IPC Certificate of Excellence
Quality is always rewarded !
 An indisputable sign that Magyar
Posta International Business Unit
fully meets the most rigorous
quality standards in handling
international mail.
 Only 12 other operators in the
world have had the privilege to be
awarded.
 It is also the proof that our
efficiency can meet your company’s
requirements.

10. Destination Hungary

11.  CEE Competence Center  Regional postal operations
(1) Direct entry (2) Cooperation and
agreements with partnership with local
incumbent postal alternative postal
operators - PPO distributors - APD
(3) High quality +
low costs = best
(4) Contractual price/value ratio
partners abroad
.

12.  Top 3 relations – international letter mail
CZ DE; 29 AT; 8 SK; 23
SI DE; 20 AT; 23 IT; 13
SK DE; 8 Europa; 9 CZ; 47
RO DE; 20 IT; 14 HU; 9
HR DE; 22 Italy 6 SI; 12
BG DE; 18 Europa; 19 IT; 6
PL DE; 33 Europe 10 UK ; 5
HU DE; 29 AT; 12 Europa; 10
0% 20% 40% 60% 80%
Germany is the most important partner for the CEE countries

13.  Top 3 relations – international parcel
CZ DE; 25 AT; 5 SK; 25
SI DE; 29 AT; 15 IT; 8
SK DE; 11 Europa; 12 CZ; 44
RO DE; 17 IT; 15 UK; 9
HR DE; 29 IT; 13 SI; 10
BG DE; 16 Europe, 19 IT; 6
PL DE; 30 Europe, 9 UK; 6
HU DE; 29 AT; 8 Europa; 9
0% 20% 40% 60% 80%
Germany is the most important partner for the CEE countries

14.  Magyar Posta International – More than just delivery !
CEE COMPETENCE CENTER
INTERNATIONAL SOLUTIONS
LETTER MARKETING PUBLISHING PARCEL & e- POST
Solutions Solutions Solutions EXPRESS Solutions
Solutions
- transactional - unaddressed & - periodicals - parcel - hybrid mail
mail semi-addressed - catalogues - express - e-COD
- priority - DM - books, - reverse - e-PPI
- economy - database - Printed matters logistics - digital solutions
- registered - business reply - COD
(value added) - inserting - track & trace

15.  What makes us different ?
 Optimal location - gateway to Europe and CEE delivery
 We can reach many of CEE’s emerging economies on our borders by road within 6
hours and we deliver to most European destinations within 48 hours by air.
 Knowledge of Hungarian and CEE market
 We provide a full range of competitive and personalized solutions for traditional
business mail and parcels and for high volume direct mail for CEE destinations
 International network
 We operate through Exchange Offices in major markets with specialized staff to
offer you the most cost-effective solutions and smooth handling
 Dedicated Account Manager
 The Account Manager serves as a single point of contact, responding to all your
questions and ensuring smooth, on-time handling of all your mailings.

16.  What is important for the customers ?
Source: BCG/IPC, 2008

17.  What are we doing ? Regional-distribution model
Price
 Postage cost
 Transport cost
 Distribution cost
Reliability
Service
Leverage
operation
Lead-time Product
 Letter product
 Delivery lead-time  Parcel product
 Transport lead-time  Express product
Efficiency

18.  What is motivating us? (satisfied customers)

19.  Global downturn makes forecast difficult  Go CEE !
* The Ifo World Economic Climate Index is based on a monthly survey of more than 7,000 companies in Germany, asking them for their opinion of their current business situation
and their expectations for the future business climate. The index measures the changes in business confidence and is an early indicator for economic development in Germany.

20.  Thank you for your kind attention !
The CEE countries represent a massive business
opportunity that Magyar Posta International
– as your single-source international
postal partner – can help you exploit to the full !
Ask for a competitive quote  e-mail: international@posta.hu