Logistic solutions: ship global, deliver local

E-commerce 15 ConferenceVilnius – 19.03.2015

Ship global, deliver local

Cross-border e-commerce,a booming but challenging market

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Ecommerce 15 Conference Lithuania3

Who we are

Everyday we are moving 1 millionB2C parcels,

delivering them across Europe,

and our volumes of cross-border e-commerce keep on growing

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B2C e-commerce sales in 2014 (billion)

€425.5

B2C e-commerce sales growth rate in 2014

+16,7 % 2.9

Number of B2C e-commerce parcels (billion)

% cross-border e-commercesales

14%

Estimated number of active B2C websites

645,000+


Source: Ecommerce Europe

What we observe is not only the fantastic growth ofe-commerce in Europe….

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Source: Ecommerce Europe, 2014 report

% of B2C cross-border purchase orders

…but also that cross-border e-commerce is gainingground in most of the European countries…

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013

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377 407 436 462

69 83 99 116

2015 2016 2017 2018


Source: EMOTA, 2013

…and this trend will continue in the coming years.

European e-commerce market forecast (in € Billion)

20%15%

Cross-border : average growth / year +20%

Domestic : average growth / year +8%

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5%

10%

11%

11%

12%

14%

15%

18%

29%

29%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Estonia

Finland

Germany

Spain

France

EU average

Netherlands

Latvia

United Kingdom

Poland

Lithuania


Sources: DPDgroup internal market research based on 2013 data

% growth of cross-border B2C export parcels in 2013

Consequently, exports of B2C parcels have boomed

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“In my opinion, cross-border e-commerce is one of the most important current trends in retail. However, many shop owners underestimate the related time-consuming work and the problems that appear when one enters a foreign market.”


Henning Heesen, Cross-Border E-Commerce Specialist and Board Member at Salesupply AG (source: Ecommerce Europe)

However cross-border e-commerce is challenging

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People pay their online shopping differently across Europe

6%

85%

25%

89% 85%

23%

94%

37%

90%

47%

38%

15%

47% 21%

55%

35%

15% 16% 11%12%

7% 6%

8%

10%20%

1%

Poland France Germany Ireland Italy Netherlands Spain Sweden UK

Online Payment methods across EuropeCard COD Direct Debit Direct Transfer E-Wallet Invoice SMS

Sources: Ayden Report 2013, bank of Poland 2011

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Cross-border e-commerce landscape

• Germans return nearly 1 parcel out of 3… even more when it comes to shoes and clothes

• Nearly 10% of French are not at home whilst knowing they have ordered a delivery at home

• You can deliver a parcel to a neighbour in the United Kingdom in case people are not at home

• In Poland recipients like to pay at reception

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Contrast between countries in usage and expectations on delivery


On cross-border ‘’Diversity’’ is more important tha n ‘’Price’’

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Wide range of different deliveryservice options

with different price levels

Limited range of deliveryservice options

but at a low costs

Domestic Cross-border

Note: % e-retailers that have answered the question ‘’How important to your business do you consider the following features of delivery services?’’ with ‘’somewhat important’’ or ‘’very important’’.Source: Copenhagen Economics, E-retailer survey

E-retailers expecting wide range of service and reliability

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The solution is delivering the local way

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Customer Case 1 : looking for the best cost-effecti ve solution for delivery

Expanding from France to Belgium, Netherlands and Germany, this e-retailer was looking for a simple way to deliver abroad, keeping the same promise to its customers.

DPD’s Pickup network was the most suitable solution.

A fashion e-retailer was offering free delivery to customers all across Europe.


Customer case 2 : looking for faster transit time a nd Track&Trace

Faster lead times and Track & Trace began to be key to keep customer shopping sending their pictures to be printed.

DPD CLASSIC EUROPE was the best solution for its exports.

Our photo printer customer realized that for its business that offering delivery was not enough


Customer Case 3: Looking for a provider addressing one’s specific needs

DPD’s solution for this collection requirement was the most flexible

A food e-retailer was requesting collection of used capsules at e-shopper’s home in Belgium and Pickup parcelshop in Portugal.

We are international delivery experts

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Number of parcels we deliver every single day

3 million

Revenue in 2014 (billion)

€4.9 864

Number of parcels delivered in 2014 (million)

Volume growth

10,7%

Number of delivery experts

46,000

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1,5

1,7

3,3

3,5

We are ahead of the competition and continue to gro w across Europe

No 1 for domestic parcel delivery across Europe

11% market share in Europe

47% revenue growth in 5 years

11% 3.4 3.74.1

4.44.9

Combined 2013 revenue for domestic parcel delivery in € (billions)

DPDgroup revenue in € (billions)% of Courier Express Market by volume

Source: DPDgroup internal marketing research, 2013 data

DPDgroup

DHL Paket

GLS

TNT

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Pickup networkThe ultimate convenience for your customers

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Number of Pickup points across Europe as of January 2015

More than

16,000 6*

Number of opening days

More than

6,000

% of the European population who has a Pickup points in less than 15 min drive away

95%*

Number of Pickup points planned for 2015

* Belgium, France, Germany, Luxembourg and the Netherlands


Our European Pickup networkThe network offering the best coverage in Europe

100

150

4801 000

Network in 2014

Network in 2015

Network in 2016

Number of Pickup points:� 2014: 16 000 � 2015: 22 000� 2016: 26 000


PredictThe ultimate flexibility for you and your customers

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EfficiencyDelivery in a specific time window means there’s a higher chance we can deliver first time round

ConvenienceIt’s easy for customers to change their mind, and find a more convenient time

Peace of mindYour customers always know when their parcel is going to be delivered


Predict1 hour time window for 20 countries in 2015

January 2015

Q1 2015

Q2 2015


Ship global, deliver local

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Complementary delivery solutions

High flexibility ofservicesfor consignees

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Internet

Logistic solutions: ship global, deliver local