Eletronic Post Box
André Silva – ViaCTT Service Manager
17th June – Basque Country, Spain
International Conference on InternetSafe Boxes & Post Boxes
CTT Correios de Portugal
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INDEX
Digital Solutions: delivering the future
Strategy: key competitive advantages
CTT: snapshot and key facts1
2
3
ViaCTT: Electronic Postal Box4
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CTT: 500 YEARS OF HISTORY
1520 1969
Appointment of the 1stPostmasterKing D. Manuel I creates the first public mail service in Portugal
1911
Adoption of the CTT abbreviationThe institution is granted administrative and financial autonomy and becomes “Administração Geral dos Correios, Telégrafos e Telefones” (General Administration of Mail, Telegraphs and Telephones)
CTT becomes a public companyWith the designation CTT - Correios e Telecomunicações de Portugal, E. P.
1992
Becomes a Public limited company With the designation CTT - Correios de Portugal, S. A.. At the same time, the telecommunications area is split and becomes an autonomous company (later PT Portugal)
100% Privatized
Beginning of the door-to-door delivery in Portugal
2013
70% Privatized
1821 1978 2014
Successfully entry of CTT as a private company, listed on the Lisbon stock exchange
Introduction of the post code(4 digits; widened to 7 digits in 2003)
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N. Employees
Points of Sale
KEY FIGURES 2014 CTT
Revenues €718 M
Operating costs 1 €583 M
EBITDA1 €135 M
Capex €17 M
12.120
Addressed mail volume 841 M
Postal delivery routes ~5.000
Savings & Insurance (Financial Services) 2 €5,5 m.M.
Financial data
Operational data
Unaddressed mail volume 508 M
2.317
1 Excluding impairments, provisions, depreciation and non-recurring costs; 2 Amount of savings and insurance products placements and redemptions
Retail network
623
1.694
Post offices
Postal agencies (third parties)
∆∆∆∆2,4%
0,1%
9,9%
27,7%
Margin: 18,8%
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Mail & Business Solutions
Express & Parcels Financial Services
Third parties services
(private partnerships, services for the Portuguese Government)
Savings
Insurance
Payments
Transfers
Payshop network(cash payments through an
electronic platform, e.g., mobile phone top-ups)
73%
% Revenues 2014 2%
Source: CTT1 Corre – 50% Correios de Moçambique; 2 Revenues by business do not include intra-group eliminations and central services structure
BUSINESS AREAS CTT
17% 10%
MAILTransactional
Editorial
Advertising
USO Parcels
Philately
BUSINESSSOLUTIONS
RETAIL SERVICES
Portugal(CTT Expresso)
Spain(Tourline Express)
Mozambique(Corre1)
71% 7% 22%
% EBITDA 2014 2%
Printing & Finishing
Storage and Document Management
(Mailtec)
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SUBSTITUTION EFFECT: THE POSTAL TRAFFIC HAS DECREASED IN THE LAST YEARS, BUT SHOWED A SLOWER DECREASE IN 2014
The mail volume evolution is affected by the econom ic activity in general and by the e-replacement effect.
When there are GDP contraction periods, the mail vo lume is even more affected
Exp
ansi
onis
t
Rec
essi
ve
Exp
ansi
onis
t
Rec
essi
ve
The volume evolution shows a high relation with the GDP growth, before the technologic
substitution effect
The decrease in the volume was worse due to the impact of the
technological substitution and an adverse macroeconomic
environment
Rec
essi
ve
% internet usersMail volume
(million items)
Sources: CTT; OCDE; Marktest, Bareme Internet1 Bareme Internet counted 5.480 thousand individuals that used the internet in 2014, within a universe composed by the Mainland residents with 15 or more years-old.
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7
Digital Solutions: delivering the future
Strategy: key competitive advantages
CTT: snapshot and key facts1
2
3
INDEX
ViaCTT: Electronic Postal Box4
8
III. Launch of the Postal Bank to expand the Financial
Services business
I. Focus on the preservation of the value of the Mail business
II. Capture the growth trend in Parcels
FINANCIAL STRENGTH
Best-in-class EBITDA margin
Significant cash-flow generation and dividend growth
Strong Balance Sheet (with no leverage)
STRATEGY: CAPTURE THE FUTURE OF COMMUNICATION LEVERAGING ON OUR COMPETITIVE SKILLS AND ADVANTAGES
IV. Leverage on the scalability of our Assets
PHYSICAL/DIGITAL CONVERGENCE E-COMMERCE GROWTH CTT AS ONE-STOP-SHOP
OPERATIONAL EFFICIENCY
Ongoing transformation programme
Continuous efficiency management
PHYSICAL PROXIMITY
2,443 Own and partnership branches
3,886 Payshop Agents
5,000 Mailmen (Largest D2D in Portugal)
Trusted Brand
HUMAN CAPITAL
Talent and Know-how
Innovation
Performance measurement & incentives
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I. Focus on the preservation of the value of the Mail business
• Price update / regulatory landscape
• Efficiency programs (e.g. Network integration)
• Development of specialized segments (e.g. direct mail)
• Digital / physical mail offers
III. Launch of the Postal Bank to expand the Financial
Services business
II. Capture the growth trend in Parcels
IV. Leverage on the scalability of our Assets
STRATEGY: CAPTURE THE FUTURE OF COMMUNICATION LEVERAGING ON OUR COMPETITIVE SKILLS AND ADVANTAGES
E-COMMERCE GROWTH CTT AS ONE-STOP-SHOP
FINANCIAL STRENGTH
Best-in-class EBITDA margin
Significant cash-flow generation and dividend growth
Strong Balance Sheet (with no leverage)
OPERATIONAL EFFICIENCY
Ongoing transformation programme
Continuous efficiency management
PHYSICAL PROXIMITY
2,443 Own and partnership branches
3,886 Payshop Agents
5,000 Mailmen (Largest D2D in Portugal)
Trusted Brand
HUMAN CAPITAL
Talent and Know-how
Innovation
Performance measurement & incentives
Digital / physical mail offers
PHYSICAL/DIGITAL CONVERGENCE
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Digital Solutions: delivering the future
Strategy: key competitive advantages
CTT: snapshot and key facts1
2
3
INDEX
ViaCTT: Electronic Postal Box4
11
Multichannel Document Production
Transpromo
• Multiple inputs (structured files, images, paper documents)
• Multiple outputs and delivery channels (paper, digital via standard and/or secure platforms)
Using the mandatory and costly writing transactional channel as a promotion channel, turning a cost into revenue.
219 million pages processed in 2014
DIGITAL: NEW DISTRIBUTION
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MailManagerViaCTT – Electronic Postal Box
reliability | privacy | legal value security | free | accessibility
1,250,527 registered users
57 Entities members
• Reception of invoices
• Returned correspondence
• Returned Registered Mail
• Answer with no Postage
MainFeatures
About 9,000 accesses (logins) daily
66 Customers in 2014 (57 in 2013)
5,5 Million scans in 2014 (5 million in 2013)
DIGITAL: NEW DISTRIBUTION – RECEIVING DIGITAL MAIL
Safe electronic mailbox, available in a secure Internet portal, which allows receiving mail in digital format.
Scanning, classification, indexing and sending correspondence in digital format.
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HYBRID LETTEReCARD, eSTAMP
• Convenient to residential users and small companies: The
creation time of mail items is reduced to seconds;
• Digital processing enables the transfer of the mail production to
a finishing center, using an industrial process;
• Printing and finishing have a lower cost than the manual
process;
• The expedition is made directly, eliminating the need for
handling paper mail in the company.
COMMON FUNCTIONALITY: SHOPPING CART and ON-LINE PAY MENT
DIGITAL: NEW DISTRIBUTION – DIGITAL EXPERIENCE ON SENDING PHYSICAL MAIL
Hybrid products that allow the production and sending of personalized cards or stamps, with legal value, just by loading or selecting images on a web page.
Document creation on a web page based on previously designed templates. The user uploads the destination addresses and the documents are transformed into mail items, sent via traditional postal services.
POSTAL ELECTRONIC SERVICES PLATFORM: Implemented in Portugal and Poland
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Geographic solutions(GeoAddress / GeoMarketing GeoRouting / Geocontacto )
STICO - Infraction Management Toll Payment PlatformSimplifies the infraction cycle execution to 6 steps, only two of which need intervention from the fining entity - registration of the infraction and certification
More than 4 millions addresses (all over the Portugal country) were geographically referenced
• Used for highways with automatic tolls
• Enables support for prepaid products
• Robust solution and ready to handle high volumes of transactions
• Possibility of loading from multiple channels (eg ATM, Payshop network or CTT Shops)
About 100,000 processes in 2014
Enrichment services of the databases of postal addresses and analysis of the territorial space, ensuring a better geographical knowledge of the market to our customers, assisting them in operational, sales and marketing decisions.
DIGITAL: INTEGRATED SOLUTIONS
PAY
TOLL
29 million transactions in 2014
15
Digital Solutions: delivering the future
Strategy: key competitive advantages
CTT: snapshot and key facts1
2
3
INDEX
ViaCTT: Electronic Postal Box4
16
Currently, there is a very wide range of communication channels used in the relationship between the sender and the receiver
• Text (SMS)• Multimedia (MMS)
Messages
• Wire• Wireless• Video
Phone
• Social Networks• Websites
Internet Addressed mail
Television & Radio
• Outdoors• Unaddressed mail
Others
Segment
Illustrative and non-exhaustive
Citizen Companies
CHALLENGES: CHALLENGES IN POSTAL SECTOR… THE DIGITAL WORLD
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The trend of increase in the use of electronic communication is mainly caused by the speed of information exchange, the increase in the rate of users penetration and low costs associated
But all the conditions for a good electronic communication are
guaranteed ?
Security?
Privacy?
Reliability?
Justify?E-mail
Segment
Companies
Addressed mail
• Social Networks• Websites
Internet
CHALLENGES: CHALLENGES IN POSTAL SECTOR… THE DIGITAL WORLD
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Privacy
Digital Communication
Security Reliability
Communication Hub
Sender Receiver
VIACTT: DIGITAL COMMUNICATION SERVICE OF CTT
Justify
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Documents & metadata
ReceiverSender
Physical and Digital Documents Production
Non-Automatic Expedition
ViaCTT Service Other CTT Services
CORREIO
FÍSICO /DIGITAL
PRINTING & FINISHING
PAGAMENTOS/ SERVIÇOS
FINANCEIROS
PHYSICAL /DIGITAL
… …
The ViaCTT service is positioned on the delivery phase, complementing CTT capabilities in the business value chain
VIACTT: BUSINESS VALUE CHAIN
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Services offering & acquisition
Services Usage
BillingPrinting & finishing
DeliveryPayments handling
The customer performs the service selection and acquisition
Services usage by customer
Billing phase, which is responsible create the raw data to fill the final documents
Document production, depending on receivers choice (physical or electronic)
Document delivery, physical or electronic channel
CTT provide several payment methods, including ViaCTT
CTT capabilities
Post Office
The ViaCTT service is positioned on delivery phase, complementing the CTT capabilities in business value chain
VIACTT: BUSINESS VALUE CHAIN
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No Restrictions
�Senders - No restrictions for senders adherence (only for companies)
�Communications - No restrictions on the type of documents to be delivered in the digital channel (ex: invoices, bank statements, insurance payment notices and renewals)
No Anonymous – Full and personal identification of each Receiver (final user)
Legal Procedures to ensure the existence of both parties
ServiceContract
Subscription
to ViaCTT ReceiversSenders
VIACTT: SERVICE CHARACTERISTICS
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� Only CTT knows the Electronic Post Box (EPB) addres s and is the one that delivers the documentation in the EPB, in order to prevent any unexpected contents for the receiver
Sen
ders
� ViaCTT is not a email system . The EPB address can’t be shared with the third parties, avoiding any phishing, SPAM and virus practices
VIACTT: SERVICE CHARACTERISTICS
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Sender Receiver
ViaCTT
ReceiverSender
Who is the owner? Who can justify the sending and reception of messages and its opening?
VIACTT: DIFFERENCES FROM EMAIL
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� Service not mandatory for Receiver. The Electronic Post Box owner isfree to:� Adhere with no costs
� Perform the selection of its Senders, and prevent the unwanted mail
� Cancel its adherence or cancel its senders selection, reverting the mail
reception to the physical way
� Use payment capabilities
� Service has no costs for the Receiver. All costs are supported by theSender (same business model as Physical Mail)
� Efficiency and Control . Delivery guarantee, considering there is a dedicatedconnection between the sender system and the ViaCTT system
VIACTT: SERVICE CHARACTERISTICS
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Entity (sender)
1The user adheres to ViaCTT service
3Entity Documentation Production
6Payment processing
User (receiver)
2The user performs the entity subscription
The subscription is validated by the entity
2
4The user receives a new document
5User performs the document payment
VIACTT: HOW DOES IT WORKS?
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ViaCTT provides a set of capabilities…
Archive
ViaCTT provides the archive service to the sender based on its needs. The document management is performed by the Sender Portal, that is a private portal provided by ViaCTT to the sender to manage its own contents on ViaCTT.
… to the sender
VIACTT: FUNTIONALITIES
Digital Signature of documents
ViaCTT provides the digital signature service to the senders. The digital certificate must be acquired to a Certificated Entity.This service provides the confirmation of the authenticity and integrity of the sender and the message content, as well as the non-repudiation from the sender
Document Response
ViaCTT provides to the sender the message reply service which allows to get a response from the receiver to the message sent.
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ViaCTT provides a set of capabilities…
… to the receiver
Alerts
Alerts (warning notifications). ViaCTT sends an alert (by email or SMS) to the receiver for each document arrived and other events (payments)
Document Sharing
The receiver can share the documents with other receivers, based on private or business relationships
VIACTT: FUNTIONALITIES
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Electronic Data Interchange (EDI)
Receiver access to the mailbox through
automated mechanisms (connectors).
Mainly applicable to B2B receivers with a
large volume of data or a need of automatic
integration on its document management
system, ERP and other systems.
Documents & metadata
Receiver
Conector (IED)
Receiver profiles areas
ViaCTT provides a set of capabilities…
… to the receiver
VIACTT: FUNTIONALITIES
Multi users access and profiling
To the receivers of type “organization”, ViaCTT provides the
ability of creating multiple accesses, with appropriate accessibility
profiles, allowing to adjust the mailbox to the needs of
organizations
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2006
The ViaCTT was launched in June 2006 and was one of the initiatives included in the Government “Technological Program”
2009
Now. Evolving…
2012
Electronic Tax Domiciliation
2010 2015
The Portuguese Government legislated the creation of the digital tax domicile and forced companies to join the electronic mailbox for reception of tax notifications
2007
National companies(utilities and telecommunications) adhere to ViaCTT
New functionalities were developed , including EDI connectors and SME tools
ViaCTT platform substitution , performed by CTT internal development teams, in order to improve management efficiency and capabilities and reduce operations costs.
2011
First advertising campaign after the service launch and the Tax Administration adherence to ViaCTT
VIACTT: 8 YEARS OF HISTORY
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Government commitment
• Minister’s Council Resolution nº 50/2006 of 5th May , for state agencies
• Included in the Government “Technological Program”
(Conclusions UE 2000 Lisbon European Council)
• Included in the Concession Contract, between Govern ment and CTT, as a no reserved service
(Decret-Law nº 112/2006 of 9th June)
• CTT is a reference of trust, quality, security, accessibility and equidistant in the market(CTT has been elected, in the last consecutive years, for the European Trusted Brands)
VIACTT: LEGAL CONTEXT
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It was approved by the Portuguese Government in 2012 that electronic tax domiciliation based on the electronic mailbox will be mandatory for legal persons and persons subject to the VAT regime.
1,1 million new users
Companies Citizen(VAT regime)
VIACTT: ELECTRONIC TAX ADDRESS
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Receivers(Companies and Citizens)
Senders
2006 2012
4
50
More than 11 million objects delivered on 2014, which represent 1,3% of total Addressed Mail (841M)
2006 2011 2012
30K
250K
1000K
Users registered on ViaCTT
Sender Entities that adhered to ViaCTT
VIACTT: EVOLUTION
2014
1250K
60
20142011
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VIACTT: THE MARKET ADOPTION AND BEHAVIOR
SendersReceivers(citizens or companies)
� At the beginning, there was a goodexpectation with the service becausepeople like to separate the “good” mailfrom the “bad” mail, and the emaildoesn’t solve this need.
� The receivers felt some frustrationbecause there wasn’t a lot of senders.
� Nowadays, according to a surveytargeted to the receivers, they expect tohave more entities in the platform andthe general feeling is that the service isvery useful and “works very well”.
� At the beginning, the senders asked“how much receivers are registeredin ViaCTT?”.
� The senders are aware of thedifferences between ViaCTT andemail.
� According to a Portuguese E-invoiceForum survey, more than 60% of thecompanies are not yet thinking on e-invoice.
� The Public Administration intents toadopt ViaCTT for its electronicnotifications, but “the publicadministration” is composed ofthousands of autonomousdepartments…
Low Satisfaction
High Satisfaction
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VIACTT: EVOLUTION
How about the future?
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Muito obrigado!
“ Não são as espécies mais fortes nem as mais intelig entes que
sobrevivem, mas sim aquelas que melhor respondem às mudanças ”.
(Charles Darwin)