FEDERATION OF NATIONAL POSTAL ORGANISATIONS

POSTAL NEWS No 63-2021

Formulated by UNI Apro Post and Logistics Sector

1. Austrian Post: Revenue of the parcel & logistics division
Increased by 70.7 %. August 13, 2021. 2. CTT expanding parcel locker network in Portugal.
August 12, 2021. 3. Sixth COLA Increase Announced. August 12, 2021. 4. PostNL set to expand locker network as strong growth
continues. August 10, 2021. 5. Cargo-partner expands in Australia with ACF move.
August 09, 2021. 1. Austrian Post: Revenue of the parcel & logistics division
Increased by 70.7 % August 13, 2021 Austrian Post has reported improved first half year revenue. Ongoing high parcel volumes in H1, continuing letter mail decline
• Parcel volumes in Austria +20 %, Turkey +24 %, CEE +21 %
• Letter mail volumes –3 %, direct mail items +2 %
H1 2021 revenue increase of +28.4 % to EUR 1,260.4m (+12.0 % excl. Aras Kargo)
§ Mail +3.0 % to EUR 608.2m

UNI Apro Post & Logistics 2
§ Parcel & Logistics +70.7 % to EUR 628.1m (+27.0 % excl. Aras Kargo)
§ Retail & Bank +18.9 % to EUR 34.0m
Improved cash flow, higher balance sheet total
• Operating free cash flow increase of EUR 45.3m to EUR 139.1m
• Balance sheet total up to EUR 2.8bn due to bank expansion
Positive outlook for 2021
• Expected revenue increase of about 15 %
• Targeted earnings (EBIT) increase of at least 20 %
• Focus on investment programme to secure performance capacity The company says: “Austrian Post continued to be adversely affected by restrictions and
consequences related to the COVID-19 pandemic. However, on balance the first half of
2021 still proved to be very successful. First half-year 2021 revenue and earnings
increased against the backdrop of a significant impact in the comparable prior-year period.
In particular, national and international parcel volumes continued to show good growth
rates. In contrast, the structural decline of mail products continued. Pandemic-related
restrictions still impacted business activities of several customer segments. Austrian Post’s Group revenue rose by 28.4 % in the first half of 2021 to EUR 1,260.4m.
The current period clearly demonstrates the structural change with increased importance of
the parcel business in a divisional comparison. In the first half-year, the Parcel & Logistics
Division reported an ongoing upward trend, accounting for 49.4 % of total revenue,
whereas the Mail Division’s share fell to 47.9 %. Revenue of the Parcel & Logistics Division increased by 70.7 % (+27.0 % attributable to
organic growth) to EUR 628.1m, also due to the full consolidation of the Turkish company
Aras Kargo, and included positive special effects from logistics services.
The Mail Division generated revenue of EUR 608.2m in the reporting period (+3.0 %).
The Retail & Bank Division also reported growth, producing revenue of EUR 34.0m in the
first half of 2021. bank99 has been offering its own range of financial services since April
2020. In order to rapidly expand the business, an agreement to acquire ING’s retail
business in Austria was reached in July 2021. The closing is expected by the end of 2021. With the acquisition of ING’s retail business in Austria, we have taken an extraordinary
step forward in accelerating the ramp-up of our financial services”, says Georg Pölzl, CEO
of Austrian Post. “We will work together with the highly professional team of ING in
Austria to further develop our bank”, Georg Pölzl adds. Austrian Post also achieved a considerable year-on-year earnings improvement in the first
half-year 2021. In the light of the prior-year period influenced by the COVID-19
pandemic, Group EBITDA rose by 64.3 % to EUR 184.5m, whereas EBIT has more than
doubled, increasing by 114.5 % year-on-year to EUR 103.4m. The Mail Division
generated an EBIT increase of 12.6 % to EUR 82.4m, driven by higher letter mail and

UNI Apro Post & Logistics 3 direct mail revenue following the prior-year period strongly burdened by the COVID-19
pandemic. Letter mail product and postal rate adjustments as well as special mailings also had a
positive impact in the current reporting period. EBIT of the Parcel & Logistics Division
increased by EUR 18.2m to EUR 59.7m in the first six months of 2021. The earnings
improvement is also attributable to the outstanding operating development in all markets,
the full consolidation of the Turkish company Aras Kargo and other special effects
relating to logistics services. The Retail & Bank Division generated an EBIT of minus EUR 27.0m compared to minus
EUR 28.7m in the previous year. The financial services business has a noticeable positive
earnings trend. Austrian Post’s profit for the period equalled EUR 84.2m in the first half of
2021 compared to EUR 39.1m in the first half of 2020. Earnings per share in the current
reporting period was EUR 1.18, up from EUR 0.66 in the prior-year period. Austrian Post revised its expectations for the full year 2021 upwards based on strong
results generated in the first half-year. In spite of the ongoing uncertainty in the letter mail
and direct mail business, total Group revenue (including the Turkish subsidiary Aras
Kargo) is expected to increase by about 15 %. Earnings should also improve from the
previous year. A year-on-year increase of at least 20 % is targeted (basis 2020 EBIT: EUR
161m). The current parcel volume development confirms the need for Austrian Post’s
planned capacity expansion programme. The sorting capacity should be expanded by a
further 50 % from 2020 to 2022.” Source : https://postandparcel.info/139967/news/e-commerce
2. CTT expanding parcel locker network in Portugal August 12, 2021 Portugal’s postal operator CTT is expanding its parcel locker network.
It has partnered with ferry operator TTSL to install parcel lockers in three river terminals,
adding to CTT’s network of over 100 parcel lockers across the country.

UNI Apro Post & Logistics 4 More intriguing is CTT’s partnership with food distributor Sogenave to pilot refrigerated
parcel lockers. The locker bank includes “standard” parcel lockers along with temperature-
controlled lockers. The temperature-controlled lockers can store refrigerated and frozen goods. CTT has ambitions to install 1000 parcel locker by the end of the year. It has a network of 1800 delivery points (including parcel lockers), where customers can
collect parcels. Source : http://www.thepostalhub.com/blog
3. Sixth COLA Increase Announced August 12, 2021 In accordance with the 2018-2021 Collective Bargaining Agreement, career
employees represented by the APWU will receive a 93 cent per hour cost-of-
living adjustment (COLA), effective August 28, 2021.
The increase is the result of a rise in the Consumer Price Index (CPI-W). It will
appear in paychecks dated September 17, 2021 (Pay Period 19-2021).The value of
the COLA for full-time employees in each step and grade will increase by $1,935.00
annually, and the hourly rates for part-time employees will be adjusted accordingly. The COLAs are in addition to general wage increases. This is the sixth cost-of-
living increase under the 2018 contract. The COLAs received so far during the 2018
National Agreement will total $3,349.00 per year. Postal Support Employees (PSEs) do not receive cost-of-living increases, but have
several general wage increases under the 2018 contract. Source : https://apwu.org/news
4. PostNL set to expand locker network as strong growth
continues August 10, 2021 Post NL has posted its quarterly results, with strong profits driven by continuing
increases in parcel volumes thanks to the ever-advancing growth of e-commerce.
Herna Verhagen, CEO of PostNL, said, “The good start of the year continued in the
second quarter thanks to the efforts of our people and strong teamwork in a challenging

UNI Apro Post & Logistics 5 environment as society opens up step by step. Of course, our key priority remains the
health and safety of our people, customers and consumers.” Verhagen said, “Performance at mail in the Netherlands was strong, partly related to
Covid-19, although the underlying trend of substitution continues. Volume at parcels
continues to grow, even when excluding the non-recurring part, which, as expected, has
faded out as physical stores were allowed to reopen.” Notably, the post is set to increase its parcel locker network, with a target of 1,500 lockers
operational by 2024. “To accommodate the stronger growth in parcel volumes we will expand our capacity
earlier and more than anticipated. Furthermore, we will accelerate sustainability
investments to speed up our progress towards our environmental, social and governance
targets. Combined, our total investments in the 2022-24 period are estimated to be around €950m
(US$1.13bn),” added Verhagen. Source : https://www.parcelandpostaltechnologyinternational.com/news
5. Cargo-partner expands in Australia with ACF move August 09, 2021 Cargo-partner has continued its expansion with the purchase of Australia-based
forwarder Associated Customs & Forwarding (ACF).
ACF is an IATA-accredited service provider for air and sea freight, customs brokerage
and contract logistics. The company operates 3,000 sq m of warehouse space in Sydney, including a bonded
warehouse with in-house customs clearance as well as a quarantine warehouse serving the
requirements of Australian import procedures.

With the addition of ACF’s comprehensive local handling and customs services to its
portfolio, cargo-partner can now offer efficient end-to-end e-fulfillment solutions for
customers throughout Australia.” Stefan Krauter, chief executive of cargo-partner, added: “Our partnership with ACF
complements our existing service and product portfolio thanks to ACF’s expertise in
logistics, value added services as well as domestic transport solutions. “With the addition of Sydney and Brisbane to our network, we can now cover the entire
east coast of Australia. At the same time, customers of ACF will benefit from cargo-
partner’s comprehensive network of offices, warehouses and experienced teams around
the globe.” Both companies use the CargoWise logistics platform which cargo-partner said would
help simplify the integration of ACF. Source : https://www.aircargonews.net/freight-forwarder

POSTAL NEWS No 64-2021

Formulated by UNI Apro Post and Logistics Sector

1. Smartmile and Keba collaborate on parcel machine rollout
in Finland. August 13, 2021. 2. Plea for Australia Post to adapt ‘cheeky solution’ for long-
time postal problem. August 12, 2021. 3. Summer cash payouts for Admin grades across several
Royal Mail functions. August 12, 2021. 4. Don’t want to go out to post your parcel? Posties can now
bring labels when they collect from your house. August 11,
2021. 5. Maltapost waives processing fees for delivery of items with
pre-paid VAT. August 07, 2021. 1. Smartmile and Keba collaborate on parcel machine rollout in
Finland August 13, 2021 Delivery specialist Smartmile and parcel locker manufacturer Keba have
commenced installation of their first outdoor parcel machines in Finland and intend
to install Smartmile-enabled Keba machines across Europe as part of a long-term
plan over the coming year
The pair note that retailers struggle with limited indoor space, all while balancing the
consumer demand for 24/7 delivery. Outdoor lockers allow for installations of always
accessible, higher capacity machines that solve these struggles and meet consumer
demands better. Smartmile says it decided to partner with Keba because it felt the
company was best suited to provide high-quality outdoor machines. Aku Happo, CEO at Smartmile, said, “Seeing that each of our parcel machines serve
multiple carriers and retailers, they have to manage very high volumes. Coping with high
volumes means we have to look for ways to install high-capacity machines. Through
outdoor machines, we offer more compartments to partners and consumers. We are happy

UNI Apro Post & Logistics 2 to partner with Keba to meet the demand for outdoor solutions and are very satisfied with
their innovative solution and solid aftersales support.” Like all Smartmile parcel machines, the collaborative machines are open and shared,
meaning that multiple couriers, hardware providers and retailers can be integrated into the
Smartmile software and use the machines to exchange parcels. This integration with Keba
apparently only took only two days, and the actual machine installation took six hours. “We know that availability in the self-service area is one of the most important features for
best customer acceptance. Therefore, numerous features guarantee smooth operation even
under the harshest climatic conditions in Northern Scandinavia. Furthermore, we believe that Smartmile’s innovative open platform approach suits our
KePol FLIP system just perfect and we are looking forward to a long-term partnership,”
said Jürgen Kusper, CEO handover automation, Keba. Source : https://www.parcelandpostaltechnologyinternational.com/news/lockers-pudo
2. Plea for Australia Post to adapt ‘cheeky solution’ for long-
time postal problem August 12, 2021 Aussies are calling for Australia Post to take a leaf out of Royal Mail’s book and
introduce an ingenious initiative that captured global attention last month.
Australia Post has been called on to consider adapting a “simple idea” to its postal process
in the name of reducing the volume of plastic waste ending up in landfill. Environmentally conscious Aussies have begun campaigning for the postal service to
encourage people to dispose of their unwanted elastic bands in post boxes. The call followed news last month of the Royal Mail in the UK revealing users could
donate their elastics via their post boxes so they could be repurposed or recycled.

UNI Apro Post & Logistics 3 A curious Twitter user quizzed the Royal Mail on its policy after seeing it advertised that
rubber bands would be accepted for recycling. “Is this true, and if so, what is the correct address to post them to?” she wrote. To the surprise of thousands, the Royal Mail responded saying that bands, both intact and
broken, could be discarded in any of its post boxes. “If they’re usable we’ll reuse them, if not then they’ll be recycled,” its response read. Fanfare surrounding the ingenious, practical adaptation of the “Reduce, Reuse, Recycle”
concept, didn’t take long to reach Australia. The idea received a huge amount of support after it was shared in a Facebook group
dedicated to the environmentalist mantra. “Just saw this – thought it was a brilliant idea! Perhaps something to get Australia Post to
think about doing?” a woman shared to the page. Others agreed and commented their support of the initiative. “That would be awesome as I always collect the ones the postie leaves behind or leaves on
my letters,” one person wrote. “This would be good if Australia Post did the same,” someone else said. Some recalled seeing elastic bands discarded in inappropriate places. “I see then discarded by the postie at letter boxes and also the post boxes,” one said. “I walk passed one of the green Australia Post storage boxes everyday on my walk, and
there are always several rubbers just dropped on the ground, presumably by the postie,”
another wrote.

UNI Apro Post & Logistics 4 “Why can’t Australia Post start the initiative with their employees to reuse them instead of
just dropping them on the ground?” they added. Some said before the coronavirus pandemic they had collected a large bundle of bands
then dropped them into their post office. Others said they had unwittingly collected large volumes of bands because their posties
had delivered their mail with them still attached. “Now that’s a cheeky solution! I’m all for it. Provided Australia Post dispose of them
properly when they clean out the boxes. I pick them up endlessly,” another person said. Australia Post told news.com.au the option to use postal boxes to recycle elastic bands had
not been ruled out. “Australia Post is committed to creating a sustainable future and we consider the social,
ethical and environmental dimensions of our entire supply chain. We’re reducing our
overall level of greenhouse gas emissions, removing virgin plastics from our packaging
range and driving the reduction, reuse and recycling of materials that would otherwise go
to landfill,” a spokesperson said. “We are currently investigating the usage of elastic bands across the business and are
always looking for ways to improve what we do in this space, including considering the
option to recycle through our postal network.” Source : https://www.news.com.au/finance/business/retail

3. Summer cash payouts for Admin grades across several Royal
Mail functions August 12, 2021 Union secures bonus payments for LA grades in Logistics & Network, along with
staff in FS, HRS&S & Legal...
Hundreds of ‘back-office’ but nonetheless key workers within Royal Mail will be
receiving bonus payments ranging from £551 to £834 this month, thanks to an agreement
negotiated by the CWU. The payouts arise from long-standing bonus arrangements and recognise the “hard work
and commitment” shown by staff in these functions during “an exceptionally challenging
year,” explains assistant secretary Andy Furey, the union’s national officer for these
grades.

UNI Apro Post & Logistics 5 “Although this year’s bonus settlement has been a month later than usual, I’m sure our
members will feel the wait was worth it, considering that the 2020/21 payouts are higher
than the last few years,” he continues. LA grades in Logistics and Network will receive £551 each, while the bonus is 588 in HR
Strategy & Services and Legal Services and 834 in Finance Services. For part-time employees, the respective payments are made on a pro-rata basis. “While of course all of our members right across Royal Mail Group have worked
extremely hard and have gone above and beyond the call of duty to serve the UK public,
it’s great to see that Admin grades in what are considered to be ‘back office’ functions are
also being appropriately recognised and rewarded. “These are extremely well-deserved bonuses and thanks once again to our members for
their fantastic efforts.” Source : https://www.cwu.org/news
4. Don’t want to go out to post your parcel? Posties can now
bring labels when they collect from your house August 11, 2021 New trial makes Parcel Collect available for customers without a printer, saving time
and reducing the inconvenience of leaving home to post a parcel. Royal Mail is trialling a new service where posties will bring pre-printed postage
labels to customers who use the Parcel Collect service. This means that customers without a printer can now use Parcel Collect, saving their
time and reducing the inconvenience of having to leave home to drop off a parcel.
The new service is being trialled in Bath, Cheltenham, Doncaster and Newton Mearns.
The trial is an extension of the Parcel Collect service, which lets customers arrange a
collection from their doorstep.
The trial will see Royal Mail supplying and delivering labels to customers who live in the
trial areas and request that option when ordering a collection. Customers using the service simply have to send a parcel, book a collection and select that
they would like a self-adhesive, pre-printed postage label to be brought by their postie
when their parcel is being collected.

UNI Apro Post & Logistics 6 Parcel Collect can currently only be used by customers who are able to print postage labels
at home. This new feature is designed to make it easy to send parcels from home for
customers who don’t have access to a home printer. It is also much more convenient for
customers who are short of time and don’t want to leave home to drop off a parcel. Parcel Collect has enabled postmen and postwomen to collect parcels and returns from
customers while they carry out their daily round. As part of the service, postmen and
postwomen will collect a parcel from the customer’s door or nominated safe place.
Around two and a half million parcels have already been collected by posties since the
launch of the service last year. Parcel Collect is available six days a week* and can be booked up to five days in advance
and up to midnight the day before.
Nick Landon, Chief Commercial Officer at Royal Mail, said: “Since we launched
Parcel Collect, the service has been incredibly popular, and we are now making it even
easier to use for people who don’t have a printer at home. Parcel Collect saves customers
time and is incredibly convenient for people to send parcels without having to leave the
comfort of their home. Parcel Collect is part of our commitment to continuously make our
services more convenient as we re-invent the way we deliver to and from our customers.” Source : https://www.royalmailgroup.com/en/press-centre/press-releases/royal-mail/
5. Maltapost waives processing fees for delivery of items with
pre-paid VAT August 07, 2021 Paying VAT at checkout could make non-EU online shopping faster and cheaper Maltapost has opted to waive processing fees for items that have had VAT paid at
checkout, with the postal company saying the change will cut costs and speed up delivery
of online goods bought from outside the EU.

UNI Apro Post & Logistics 7 “We had prepared ahead for these changes so that the impact on the local consumer will
be as minimal as possible and in many cases even beneficial. “Local consumers can continue enjoying shopping online from their favourite merchants,”
Maltapost chief operations officer, Adrian Vassallo said. As of July 1, VAT started being charged on all purchases from non-EU countries,
irrespective of the value of items. Before July 1, items under €22 bought from outside the EU were exempt from VAT. The
introduction of VAT on all items follows new regulations introduced by the European
Commission, aimed at increasing price transparency and competitive trade for digital
consumers in the EU.
Major retailers sign up for IOSS
Contrary to public perception, this will not always make the online shopping experience
more pricey or complicated, Vassallo explained. This is because, in order to facilitate the payment process, a new scheme – IOSS (Import
One Stop Shop) – has been introduced allowing people to pay VAT directly to the online
seller on point of sale for items worth up to €150. Major online retailers such as AliExpress, Joom and Wish are all IOSS-registered,
facilitating the buying process for customers by automatically collecting EU VAT on
purchases. Consumers can find information on whether VAT is included or not on the seller’s
website, usually in the delivery details or in the FAQs.
Watch out for third-party merchants
Vassallo added that customers just need to be aware of the fact that some of the major
online retailers may allow purchases through third-party merchants. If these merchants do not provide the platform’s IOSS number as part of the online
declaration when sending the item, then charges would still apply in Malta and the
customers would need to claim the VAT back from the seller. So, while the value of the item may now look more expensive on check-out, due to the
added VAT (in the case of IOSS-registered merchants), Maltapost has waived handling
charges on items under €150 from online merchants that are IOSS registered, despite the
fact that they need to also declare IOSS items to customs. If an item's customs declaration is correct, VAT has been paid at check-out and there are
no objections by Customs, then it will be immediately delivered to the buyer’s address
without additional charges once it arrives in Malta.

UNI Apro Post & Logistics 8 However, for items purchased from a supplier that is not IOSS registered, buyers will have
to pay VAT and processing fees before the item can be delivered. Such fees are charged by all European postal and courier operators when goods are
imported in the EU.
What are the processing fees?
Maltapost provides services to simplify customs clearance and speed up the delivery
process. There is an administrative fee that Maltapost charges to cover the costs of collecting the
required documentation, presenting them to the customs authorities, clearing dutiable
goods on the customer’s behalf and effecting the payment of the customs dues and VAT.
MaltaPost processing fees. Customs controls apply when purchasing goods from non-EU countries. This means an item might be held by the customs authority at entry, pending the payment
of duty and tax. Imports may also need to be inspected and cleared by the following directorates to check
for prohibited or restricted items: the Veterinary Border Inspection Posts (BIP), Port
Health Medical Services (PHO) – Ministry for Health (Doctor and Food), Plant Health,
Gold Consul, Intellectual Property Rights (IPR), Malta Competition and Consumer Affairs

(MCCAA), Malta Communications Authority (MCA), the Environment and Resources
Authority (ERA), Heritage Malta and the Malta Police Force. This additional clearance comes at an extra charge that ranges from €2 to €5 per entity. Source : https://timesofmalta.com/articles/view

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