Springboard to Asia, Springboard to Asia, Connecting the World through eConnecting the World through e--CommerceCommerceDr Wolfgang BaierGroup Chief Executive Officer

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Singapore Post Limited

16 October 2013

SingPost Group at a glance

S$2.4Bmarket capitalisationS$2.4Bmarket capitalisation

> 150 yearsof serving Singapore> 150 yearsof serving Singapore

20032003 12 countries12 countriesIPOIPO footprintfootprint

28%regional revenue28%regional revenue

2007postal liberalisation2007postal liberalisation

4,700size of workforce4,700size of workforce

> 3 millionmail items delivered> 3 millionmail items delivered size of workforcesize of workforcemail items delivered each business daymail items delivered each business day

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Challenges faced by the postal industry

Declining mail volume

Escalating operating costs

Strict regulations

Liberalised marketsLiberalised markets

High service expectations

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Singapore - efficient gateway to Asia & ASEAN - ideal hub for e-Commerce

Asia

Singapore

ASEAN

Singapore: Asia & ASEAN:Singapore:No. 1 Business environment in the worldNo. 2 Most competitive city in the world17 of 25 Top 3PL providers have regional

Asia & ASEAN: 4.3 billion combined populationUS$10.6 trillion combined nominal GDP8% yearly GDP growthASEAN - 600million combined population &

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HQ / hub operations in Singapore ASEAN 600million combined population & US$2.3 trillion combined nominal GDP

e-Commerce is growing fast globally,but especially in Asiap y

Otherse-Commerce sales in billion

US31.2%Europe

24.5%

6.3%

US35.8%

Europe28.4%

Others5.5%

100% 100%US$1 9 t illi

Asia Pacific38.0%

Asia Pacific30.3%

US$1.1 trillion US$1.9 trillion

20162012 Asia Pacific e-Commerce sales expected to be more than US$1 trillion by 2020

Source: eMarketer, June 2013

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Asia e-Commerce costs need to become more competitive to stimulate growthp g

Estimated e-Commerce logistics cost as a % of total e-Commerce market (2012)

20+%

of total e Commerce market (2012)

10% - 15%

US/EU AsiaUS/EU Asia

Source: Transport Intelligence, Asia Pacific e-Commerce Logistics 2013

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SingPost Group vision and businesses

Regional leader in e Commerce logistics ande-Commerce logistics and trusted communications

Protecting the Core Growing the Wings

Retail & Financial Svcs

Digital Services

Logistics &e-Fulfilment e-CommerceMail

Singapore’s Public Postal

Licensee

Trusted and secured digital mail platform

Strong logistics network in Asia

Pacific

e-Convenience at your

fingertips

Multi-channel network

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Trusted communications: converging digital and physical channels

Trusted Communications

Letter DeclineLetter Decline

Trusted Communications

Letter DeclineLetter Decline

RisingCostsRisingCosts Strict

RegulationsStrict

Regulations

Digital Mail

Innovative Products

Infrastructure & Processes

Increasing CompetitionIncreasing Competition

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e-Commerce logistics: delivering end-to-end solutions

e-Commerce Logistics

Transportation Warehousing & Last Mile Delivery Marketing, Content

e-Commerce Logistics

Transportation Fulfilment & Returns Mgmt & Payments

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Fulfilling full spectrum of e-Commerce transportation needs

Transportation Warehousing & Fulfilment

Last Mile Delivery & Returns

Marketing, Content Mgmt & Payments

Ocean / Air forwarding Postal networks Logistics partners

FamousFamousHoldings

Top 3 Singapore-based sea freight consolidator & forwarder

Global network of own offices in 11 cities in the 6 countries

USAustralia

Japan

China Singapo

reMalaysia

FamousHoldings

forwarder countries

Annual consolidations throughput is about

Able to meet the special demands of chemical and fineAsia Pacific

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throughput is about 28,800 TEUS

chemical and fine art industry

Satisfying e-Commerce requirements through innovative warehousing & fulfilment capabilitiesg p

Providing effective

Transportation Warehousing & Fulfilment

Last Mile Delivery & Returns

Marketing, Content Mgmt & Payments

e-Commerce fulfilment:

Low order to line ratio

Management of large number of SKUs

Manage “long-tail” slow movers

Throughput maximising design

Space optimising setup

Manage fulfilment cost – Lean Six Sigma, Technology

Short order-to-fulfilment cycle time 12 warehouses

Sustainable low-cost packaging

Innovative solutionsRegional coverageMaximising labour

efficiency

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Providing choice and control over last mile delivery for e-Commerce customers

SMS/ EmailInteractions

Transportation Warehousing & Fulfilment

Last Mile Delivery & Returns

Marketing, Content Mgmt & Payments

Web-enabled Track & Trace 7 Days/ Week ays/ ee

Post office

Convenience store

touchpointsFlexible Doorstep Delivery

One LoginMulti-channel

24/7 POPStation11

Putting all pieces into one complete solution: Adidas.com.sg powered by SingPost

Southeast Asia coverage

Transportation Warehousing & Fulfilment

Last Mile Delivery & Returns

Marketing, Content Mgmt & Payments

End-to-end e-Commerce solution

Hub and spoke set-up

shop.adidas.co.th

shop.adidas.com.sgshop.adidas.com.my

shop.adidas.com.ph

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Guiding our organisation to transform, by walking the talk

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Achieving HighAchieving High

Ranked No 1postal agency in the world Global Service Provider World Mail Award 2013postal agency in the worldtwo years in a row of the Year award for People Management

Thank YouThank You

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