1. growth Staying At Home Is Not An Option Helping Merchants Boost Cross-Border e- Commerce Sales eShop Expo, Brussels 28 March 2012Chris Stevens Head of Industry Distance SellingSwiss Post International Management AGGlobal Sales Management (GSM)

2. Fact >85% of the worlds online population has used the Internet to make a purchase. AC Nielson Global Online Survey January 2009Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 2

3. By 2014 Swiss Post Selling Industry The Distance with and through itspartners is the worlds acknowledged leader inglobal cross-border full service e-commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

4. Market Definition the distance selling industry DISTANCE SELLING Mailings / Online (e-shop) Mobile T-Commerce Direct selling Catalogues e-Commerce Business to Consumer Business to Business Consumers perspective - any order made in an e-shop Domestic Cross Border from a non domestic retailer. Integrates both channels and provides the most competitive delivery option depending B2C Mail B2C Parcel on weight and/or valueChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 4

5. Sizing the Cross-Border Opportunity - Europe orders for physical goods EU population 2010: ~ 501 Mio. 37% made at least one on-line purchase in 2010 4% shopped from a country outside the EUChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 5

6. Challenges - Europe cultural and legislative 27 countries in the European Union Own customs and tax authorities 23 official languages Plus Norway and Switzerland One single currency the Euro plus other currencies (GBP, SEK, NOK, CHF) A single EU customs territory with no borders, but Separate tax rules and regulations Import VAT and Duty payable in state where goods enter the EU Exceptions: LVCR (Low Value Consignment Relief) for low value items Off-shore fiscal representation options exist How to offer a single, workable, cost-effective solution for Europe?Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 6

7. Business opportunity future growth potential Almost a quarter of persons aged 16-74 in the EU27 have never used the internet % of individuals who have never used the internet, 2011 Source: EmotaChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 7

8. Consumers: Cross-border shopping common in the Nordic countries, developing across EuropeChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 8

9. Barriers and NeedsBy 2014 Swiss Post with and through itspartners is the worlds acknowledged leader inglobal cross-border full service e-commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

10. Overview the e-commerce value chain Customer data & Online Order Warehousing & Customer Care Marketing appear- management Distribution ance New Existing Shop Billing & Order Warehousing & Warehouse Delivery Return Customer customers platform payment preparation Mgmt Service customers Distribution Online Mining Data Online Individual Country Delivery Central Customs Consumer Pickup points Campaigns Customer Campaigns Shop specific cost stocking VAT support Quality check offline offline platforms payments calculator Inventory Track & segmen- Home Restocking Campaigns tation Campaigns SME Credit check (guarantee) management Trace delivery transport transpor- to Data Mining Loyalty pro- Data Mining platform Payment Pick & pack retailer tation to grams Customer Customer guarantee labelling retailer segmen- segmen- tation tation Social Media Social Media integration integration Address- Address- Management Management Search Engine Newsletter- optimization Management Third party Loyalty pro- Platform grams managementChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 10

11. Drivers and barriers reasons for/against cross border shopping Main drivers for cross-border Main barriers for cross-border on-line shopping on-line shopping 1. Price 1.No need lower prices, compare prices, better price due to Can find everything I need in my own country lower taxes and exchange rates 2. Exclusive products 2. Lack of trust Not sold in own country Quality of goods, not confident in receiving goods, warranty 3. Wider range of products 3. Possible high delivery costs 4. Convenience 4. Complicated & long return processes Any time of the day Source: IPC Cross border e-commerce report 2010Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 11

12. What cross-border e-Commerce needs from a private consumers perspective Shop Provide Search Engine or comparison site promotion Provide retailer with innovative online promotion tools support Find best process model for each scenario to achieve competitive competitive end-to-end delivery cost cost structure Provide escrow service to bring additional safety for Localized payment and escrow retailer and shopper service Find ways to provide convenient return processes for each scenario Transparent return processes Use track& trace of higher valuable products Secure and trusted home delivery Develop calculator application and feed it with total cost of order transparency relevant data of products and overall delivery cost and guarantee Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 12

13. What cross-border e-Commerce needs from a merchants perspective Provide escrow service to bring additional safety for Localized payment retailer and shopper and escrow service Develop calculator application and feed it with total cost of order relevant data of products and overall delivery cost transparency and guarantee Use track& trace of higher valuable products Secure and trusted home delivery Find ways to provide convenient return processes for each scenario Transparent return processes Find best process model for each scenario to achieve competitive cost structure competitive end-to-end delivery cost Provide Search Engine or comparison site Shop promotion Provide retailer with innovative online/offline promotion tools support Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 13

14. What cross-border e-Commerce needs from a postal organisations perspective Shop Provide Search Engine or comparison site promotion Provide retailer with innovative online promotion tools support Provide escrow service to bring additional safety for Localized payment and retailer and shopper escrow service Develop calculator application and feed it with total cost of order transparency relevant data of products and overall delivery cost and guarantee Find ways to provide convenient return processes for each scenario Transparent return processes Use track& trace of higher valuable products Secure and trusted home delivery Find best process model for each scenario to achieve competitive cost competitive end-to-end delivery cost structure Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 14

15. What consumers require certainty, predictability and trustChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 15

16. Why are posts so interested in e-commerce? huge potential While e-substitution is the driver for the decline in physical mail, e-commerce is driving the only significant growth in postal services. IPC executive Forum on e-commerce, Oct. 2010Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 16

17. The positioning of B2C ParcelBy 2014 Swiss Post with and through its helping merchants and SMEs go cross-partners is the worlds acknowledged leader inglobal cross-border full service e-commerce borderas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

18. The role of B2C Parcel designed to facilitate cross-border e-commerce November 2010 2011 2012Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 18

19. B2C Parcel providing merchants with quality and reliability 100g to 30kg 26 countries Best-in-class postal partners Home delivery standard Track & Trace: cross-border parcel tracking in ONE system Insurance 50 EUR per parcel or EUR 10 / kg (>5kg) Single point of contact Professional advice by your personal Swiss Post customer advisor Local prepaid return solution Web-based customer interface Additional services (e.g. PickPoint)Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 19

20. The positioning of goCommerce helping Swiss companies develop an onlineBy 2014 Swiss Post with and through itspresence is the worlds acknowledged leader inpartners global cross-border full service e-commercewww.post.ch/gocommerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

21. The importance of the shop platform basis for international expansion the online shop platform is the control centre of the entire value chain, because this process step influences practically all of the downstream, but also the upstream process steps Shop platform seen as central control unit for the entire value chain Successive modules are influenced by this control unit Providing a shop platform means helping merchants growChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 21

22. goCommerce one contract one partner one turnkey solution Integrated distribution interface Boost revenue with new online sales channel minimal upfront investment Exploit potential of domestic Onlineshop and cross-border e-commerce Save time and money with the integrated distribution interface Eliminate need for evaluating Ready to use and programming shop payment processing software TextChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 22

23. AW Shop Premium Design Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 23

24. Integrated online payment via SwissPost providing the best known online payment methodsChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 24

25. The positioning of POWABy 2014 Swiss Post with and through its an international partnership designed forpartners is the worlds acknowledged leader inglobal cross-border fullfootprinte-commerce a rapid cross-border serviceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

26. POWA (and VENDA) a stunning customer baseChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 26

27. Creating International Sites low risk, transaction-based model Traditionally companies try to layer multi-lingual, multicurrency into their main e-Commerce site Brands are turning to new secure private cloud technology to deploy International sites using cloning Low-risk, fast deployment Dozens of sites in a few weeks Complementary to existing e-Commerce footprint PCI DSS Level 1 compliant critical for foreign sites as some countries have PCI compliance embedded into criminal lawChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 27

28. The positioning of TLCSBy 2014 Swiss Post with and through itspartners is the worldsblock to facilitate an essential building acknowledged leader in cross-border transparencyglobal cross-border full service e-commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

29. Cross border shopping why are consumers reluctant? Transparency: knowledge about total landed cost before closing the online deal generates security for the shopper Trust: A guarantee that there will be no additional costs arising, offered by a trustworthy company (e.g. Swiss Post) generates trustChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 29

30. Our Total Landed Cost Calculator Model a robust gateway for e-Commerce built upon 3 key principles Simple Shipping We provide shipping label, necessary forms and indicia Simple Pricing/Billing Regionalized pricing by zones Insurance, end-to-end tracking and address cleansing/correction at no additional charge Accurate pricing based on actual weight, detailed billing of each package shipped No more guessing. Simple Tracking End to end tracking across multiple carriersChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 30

31. Swiss PostBy 2014 Swiss Post with and through its creating the infrastructure forpartners is the worlds acknowledged leader inglobal cross-border full service e-commerce innovative cross-border e-Commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

32. Swiss Post Excellence delivered We see ourselves as your partner. We make you successful. We always produce something extraordinary. Idea Vocation Originality Excellence delivered. Promise Corporate culture We are already working today on your success We deliver Swiss quality tomorrow. worldwide.Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 32

33. The positioning in BelgiumBy 2014 Swiss Post with and through its Assisting e-merchants to go cross borderpartners is the worlds acknowledged leader inglobal cross-border full service e-commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost

34. Services available from Swiss Post Belgium as from today Customer data & Online Order Warehousing & Customer Care Marketing appear- management Distribution ance New Existing Shop Billing & Order Warehousing & Warehouse Delivery Return Customer customers platform payment preparation Mgmt Service customers Distribution Online Mining Data Online Individual Country Delivery Central Customs Consumer Pickup points Campaigns Customer Campaigns Shop specific cost stocking VAT support Quality check offline offline platforms payments calculator Inventory Track & segmen- Home Restocking Campaigns tation Campaigns SME Credit check (guarantee) management Trace delivery transport transpor- to Data Mining Loyalty pro- Data Mining platform Payment Pick & pack retailer tation to grams Customer Customer guarantee labelling retailer segmen- segmen- tation tation Social Media Social Media integration integration Address- Address- Management Management Search Engine Newsletter- optimization Management Third party Loyalty pro- Platform grams managementChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 34

35. International distribution services available out of Belgium Worldwide : B2C International / B2C Professional up till 2 kgs postal channel low cost - no track & trace Worldwide : B2C Parcel up till 30 kgs B2C delivery service value for money track & trace Switzerland : B2C into Switzerland duty free import solutions for consumers Norway: B2C into Norway duty free import solutions for consumersChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 35

36. e-commerce delivered.Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 36