InPost S.A.

Annual Report 2021

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

FIND OUT

MORE HERE

Contents

Management report

Chairman’s statement ii

Letter from the CEO iii

About us 1

Highlights 2

InPost out of the box

Our story 5

At a glance 12

– What we do 12

– Our platform 12

– Our partners 13

– Where we operate 13

– Mondial Relay 15

How we are structured 17

Members of the Management Board 18

Composition of the Management Board

and the Supervisory Board 19

Why invest in InPost 20

Our purpose driven approach 21

Operating environment 23

Our business model 24

Our strategy 27

Business review 32

– Poland 32

– International 32

– Technology 33

– Stakeholder engagement 33

– Membership in the Associations 35

Financial review 36

Sustainability report

Our journey to sustainability 41

The impact we may have and the

role we may play for sustainable

development 43

Our strategy and commitments 47

In planet 49

In client 57

In people 67

Future outlook 77

ESG governance and structure 78

Taxonomy 81

Corporate governance

Governance ecosystem 85

Internal governance 88

External governance 96

– Risk management 100

– Key risks 101

Supply chain 105

Report of the Supervisory Board 106

Remuneration report 108

Financial statements

Responsibility statement 116

Audit report 117

Consolidated statement of profit or loss

and other comprehensive income 121

Consolidated statement of financial

position 122

Consolidated statement of cash flows 123

Consolidated statement of changes

in equity 124

Notes and explanations 127

About the report

Independent Limited

Assurance Report 203

GRI disclosures 206

SASB index 216

Emissions of GHGs in tCO

222

NFRD 235

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Chairman’s statement

GRI [102-10]: 2021 was a year of significant milestones

in the history of InPost. In January, the company was

floated on the Euronext stock exchange in Amsterdam

in what was Europe’s largest IPO of the year and one of

the biggest in the world in 2021.”

Mark Robertshaw

Chairperson of the Supervisory Board

initiative which helps us set clear goals

for decarbonising the InPost Group in

the years ahead. We are also a member

of the UN Global Compact and have

aligned our ESG strategy to the United

Nations SDGs.

We are acutely conscious that the

world in 2021 continued to face the

multiple challenges from the COVID-19

pandemic. For InPost, as with most

businesses, this has created a very fluid

and volatile environment as periods

of lockdown and re-opening create

very different market and operating

dynamics. The secondary effects of

COVID-19 through global supply-chain

disruptions create additional challenges

against which to forecast anticipated

demand levels. Our focus remains on

being nimble, entrepreneurial and

relentlessly customer-centric to continue

to out-grow significantly the underlying

e-commerce markets in which we

operate, by delivering exceptional levels

of service, quality, reliability and value.

Although the pandemic is not over

yet and we still see its consequences,

it is heartbreaking that we are facing

another world scale threat - war on

Poland’s border. While we have no

revenue or operational exposure

to any of the countries involved in

the conflict, a large number of our

employees are Ukrainian citizens. In this

difficult time for our colleagues and

our continent, we stand in solidarity

with war-affected Ukraine and have

committed meaningful resources

towards the humanitarian crisis they

are suffering. Using our logistics facilities

and transport fleet, we help to deliver

to civils large quantities of products

collected in campaigns and collections

organised throughout Poland.

Especially because of that, on behalf

of the Board, I would like to thank all

our employees for their dedication

and commitment throughout these

challenging times. They have shown

great ingenuity and resilience whilst

keeping an overriding customer focus

throughout as well as a heart-warming

commitment to helping those in need.

We truly appreciate all their efforts.

As our first year of business as a public

company draws to an close it has been

a pleasure to welcome in 2021 three

new Supervisory Board members who

joined the company at the IPO: Marieke

Bax, Cristina Berta Jones and Ranjan

Sen. InPost is delighted to have them on

board for the breadth of experience and

expertise that they bring to the business.

Mark Robertshaw

Chairperson of the Supervisory Board

While the share price performance

in our first year on the Amsterdam

market fell short of our hopes, we are

confident in our ability to deliver long-

term shareholder value. We will do so by

continuing to execute on our strategy

with a focus on innovation, leveraging

technology, and building strategic

partnerships. At the heart of this is

our unwavering focus on customer

centricity creating a unique consumer

experience of quality, service and

convenience.

Equally important to our strategy is

our commitment to sustainability with

our aim for InPost to be an industry-

leader in environmental initiatives.

Delivery to our Automated Parcel

machines – where multiple parcels are

delivered at the same time - results

in significantly lower levels of carbon

dioxide emissions than from traditional

to-door deliveries. As we continue to

put environmental sustainability at the

heart of our business our comprehensive

ESG strategy is based on three pillars:

Clients, Planet & People. Central to this

is our commitment to adopting Science

Based Targets (‘SBTs’) an international

GRI [102-10]: At the end of June, we

then completed the acquisition of

Mondial Relay for €513m as a key

element in our strategy to grow InPost

from being the leading e-commerce

logistics provider in Poland to an

increasingly pan-European business.

I am pleased to report that InPost

delivered very strong year-on-year

progress in 2021 in our home market

of Poland, both in terms of revenue

and profitability, at a level of growth

which was very significantly ahead of

the underlying e-commerce market.

We also saw strong year-on-year growth

in our international revenues as we

increasingly get traction with rolling

out InPost’s differentiated, out-of-home

e-commerce logistics proposition in

new geographies.

iii

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [102-14]: First, we completed

our listing on Euronext Amsterdam,

Europe’s largest-ever technology IPO

and a milestone in our company’s

history. We are not only the leading

automated e-commerce last-mile

business in Europe, but we are also the

only listed representative of our sector.

While the outbreak of war in Ukraine,

energy price spikes and the overall

surge in inflation bring many hardships

and challenges in 2022, we believe the

structural story associated with our

automated locker proposition only

becomes more prominent. Although

like most firms we face cost pressures,

the gap between more expensive

to-door delivery and our automated

locker proposition will only rise in

this inflationary environment. And

while it is clear the inherently more

sustainable vehicle & C02 footprint of

lockers has been rising in importance

for both merchants and consumers, the

sanctions associated with the war have

made the objective of reducing energy

consumption even more socially urgent.

In e-commerce delivery, automated

lockers are both the most energy efficient

and cost-effective last-mile solution.

Looking back at 2021 we made

considerable progress towards our

mission to improve the consumer

experience, the sustainability, and

efficiency of last-mile e-commerce,

and we have delivered all we had

communicated at the moment of IPO.

In July, we completed the acquisition

of French e-commerce giant Mondial

Relay, a very strong strategic fit for

our business which significantly

accelerates our strategy of bringing

automated lockers to consumers to

Europe. Mondial operates in France,

Spain, the Netherlands, Belgium, and

Luxembourg. These are all markets with

significant share of parcels handled via

2021 was a year of significant milestones and progress in

Inpost’s mission to transform e-commerce last-mile logistics

for European consumers and merchants. Leveraging our

ongoing success in Poland, we began 2022 extremely well

positioned to similarly transform and optimise last-mile

e-commerce in many large European markets.”

We look forward to

introducing key European

markets to our highly

sustainable differentiated

last-mile solution.”

Letter from the CEO

20212020

Total parcels delivered (millions)

Rafał Brzoska

Chief Executive Officer

518

310

Rafał Brzoska

Chief Executive Officer

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

convenience stores where consumers

pick up and drop off (‘PUDO’) packages.

Mondial’s scale in out-of-home markets

allows us tap into a sizeable existing

merchant base that is already very

familiar with the consumer benefits and

attractions out of home collection vs

to-door delivery. Mondial’s pre-existing

large scale out of home markets allow

us to tap a sizeable merchant base

that already engages with Mondial,

and crucially the consumer base that is

already acknowledging their preference

for out-of-home collection vs to-door.

We expect Mondial’s large merchant

base will embrace the improvements

in speed reliability and consistency that

we look to bring to consumers with the

existing PUDO network, that will only

be enhanced with the introduction of

automated lockers.

Our initial roll out of 300 APMs in France

has so far confirmed our thesis that this

transition to automation in Mondial’s

markets offers significant potential

for us to capture both increased share

on rising consumer satisfaction, and

improved economics vs PUDO. The

initial ramp-up curve in utilisation and

adoption is more promising than we

have seen in Poland. We look forward

to introducing key European markets

to our highly sustainable differentiated

last-mile solution.

While the acquisition and integration

of Mondial Relay brought greater

scale and complexity to our business,

merchants on their path towards

achieving their net zero goals, the

reduced number of delivery vans

required vs to-door also improves

quality of life, health and safety in our

cities. Imagine that every single APM

deployed so far, reduces as much CO

every day, as nine big trees during the

whole year!

We intend to lead sustainable change

in logistics. As a market leader we act

responsively and have in mind that we

set targets not only for ourselves but

also for competitors and our partners.

We want to continue to amaze people,

using the potential of technology for the

good of the planet.

Strong competitive position

With the transformative power of

APMs increasingly clear to many, we are

naturally facing competition both from

some of legacy to-door focused players

and also from new entrants in Poland

and across our wider international

network. While it is clear that given

sustainability and cost advantages

of the model automated last-mile

delivery will likely attract some degree

of increased competition, creating a

successful model which combines

the right network density, logistics

excellence and digitisation of consumer

experience that are all an integral part of

our product offering is very complex. We

will remain focused on delivering the

best possible consumer experience and

value to our customers. As the nearest

InPost locker becomes increasingly a

part of consumers’ lives, this facilitates

the growth of our e-commerce

merchant partners driving our network

effect. We are confident that merchants

and their consumers will continue

to recognise the value of our scaled

APM business model in helping them

achieve their objectives.

we feel we are making good progress

advancing the challenging integration

of structure, systems, and IT support.

Already having the most

environmentally and socially sustainable

business model of any scalable last-

mile solution, we made considerable

progress in 2021 towards implementing

an ambitious and comprehensive

ESG strategy. We have developed

detailed plans to ensure sustainability

is embedded in the fabric of our

organisation and guides every decision

we make. It is a critical component of

responsible growth and a reflection

of the material concerns of our

stakeholders. Our ambition is nothing

less than being recognised as one of

the world’s most important enablers of

e-commerce sustainability with a best

practice approach to ESG that is at the

heart of our highly sustainable product

offering.

Making a difference

We believe we can make a significant

contribution to the communities in

which we live and work, as well as to our

people, our customers, and our planet.

Our Automated Parcel Machines offer

the most environmentally friendly

package delivery method. Our logistics

process means that deliveries to

APMs allow a reduction of last-mile

emissions by as much as 75%

in comparison to traditional to-door

deliveries. This not only helps our

Letter from the CEO

continued

Furthermore, a recent study

highlighted that we have the

most preferred last-mile

delivery service for 91% of

consumers in Poland

.”

Gemius, 2021

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Part of that strategy is to secure and

expand attractive locations, as density

and proximity are crucial components

of our value proposition. In Poland we

now have 56% of the population within

a 7 minute walk of one of our lockers,

up from 50% at the end of 2020.

By contrast our nearest competitor

in Poland reaches only 11% of the

population on this metric.

In Poland, we deployed a record

5,669 APMs in 2021, 60% more new

deployments than our competitors

combined. As our lockers are larger,

this meant we accounted for 90% of

all new lockers in the market in 2021.

We now have a total of 2.4 million

lockers, representing 95% of all parcel

lockers across the market in Poland.

In the meantime, we were launching

key partnerships with Amazon Poland,

Shopee and OLX (biggest e-commerce

consumer-to-consumer platform),

as well as we started signing pan-

European framework agreements with

multinational merchants like Vinted

– multiplying the volumes we generate

from the Polish market. Together with

our award-winning InPost Mobile app,

we offer a unique experience for almost

eight million of our active consumers

in Poland, continually launching

new services that make life simpler.

These service innovations include

remote locker opening, redirection

of a courier parcel to a locker, label less

packages, and our new grocery service,

InPost Fresh.

The InPost Flywheel

In Poland, we continued to accelerate

our APM growth through our “flywheel”,

where offering greater convenience,

leads to improved customer experience

fuelling wider merchant adoption and

generating greater efficiencies, both

within country and across borders.

This strategy has further extended our

leadership position and significantly

enhanced our long-term growth

potential. We are confident that we will

continue our successful expansion by

leveraging our experience and detailed

use of data to build the right APM

partnerships in the right locations.

High consumer satisfaction

Customers sit at the heart of our

strategy, and we continue to invest in

enhancing our best-in-class consumer

experience. I am pleased to note

that our APM service’s net promoter

score (NPS) improved again, reaching

a new record level of 75 in Poland.

Furthermore, a recent study highlighted

that we have the most preferred

last-mile delivery service for 91% of

consumers in Poland. Internationally

our lockers are already achieving very

strong NPS from both merchants and

consumers.

UK return opportunity

Unlike the pre-existing scale we have in

Poland and with Mondial markets, in

the UK we are taking a very disciplined

approach to introducing merchants and

As well as launching our new ESG strategy, InPost delivered a range of

environmental initiatives in the e-commerce sector in 2021.

In addition to continuing to enhance the sustainability of parcel delivery

logistics, we installed electric vehicle charging points and air quality sensors

around our APMs and launched a project piloting solar-powered APMs to

provide electricity from more sustainable energy sources.

Our Green City Partnership initiative now covers 26 cities in Poland. For

example, in Wroclaw, we have created an environmental hub by combining

our electric vehicle fleet, air pollution sensors, and electric charging points.

Letter from the CEO

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Letter from the CEO

continued

consumers to the benefits of automated

lockers. We have concentrated our

efforts around Greater London,

Manchester, and Birmingham with a

focus on facilitating returns which have

traditionally been an economically

costly part of merchant business, and

a frustrating experience for consumers.

In March, we launched an instant

returns service, providing consumers

and merchants with new levels of

convenience and customer satisfaction.

This label-less service allows consumers

to return items in seconds – 24 hours a

day, 7 days a week and is now live with

more than 100 fashion focused retailers

including Asos, Boohoo and JD Sports.

We have now installed over 3,000

APMs in the UK and announced

key landlord partnerships with

organisations such as Transport for

London for installations at Underground

stations and national retail chains,

including Tesco, Lidl, Morrisons, and

WHSmith. These alliances support

our network expansion plans in 2022

and beyond. As we further increase

our locker density and customer

appreciation of the control and

convenience lockers provide, we

anticipate expanding our services with

our existing and new merchants which

will generate strong growth for the

business over the coming years. To date

we have served more than seven million

consumers in a youthful fashion and

sustainability focused demographic.

Their adoption of lockers led by “First

mile” returns and our consumer to

consumer focus, as well as merchant

satisfaction with our service, has positive

long term implications when we add a

last-mile locker pick up proposition.

A digital ecosystem

InPost has benefited from strong

underlying secular tailwinds, many

of which were amplified over the

past year. While there will be cyclical

fluctuations driven in part by the

current rise in inflation, I believe that

the shift towards the digital economy,

accelerated by the impact of Covid-19,

is irreversible. This shift has created new

growth opportunities and highlighted

the existing challenges of last-mile

delivery ecosystems across the globe,

particularly for the traditional to-door

courier model.

Looking ahead

Our focus remains on sustainable

growth, building on our existing

relationships and nurturing new

opportunities. In 2022, we will:

• Continue to strengthen the flywheel

effect both in Poland and across our

geographies by increasing consumer

satisfaction, improving the density of

our APM network, and maintaining

our market position;

• Accelerate the transformation of

Mondial Relay to capture the out-of-

home automation opportunity in the

large French market;

We believe we

can make a

significant

contribution to

the communities

in which we live

and work, as

well as to our

people, our

customers, and

our planet.”

Rafał Brzoska

Chief Executive Officer

• Leverage our cross border

opportunities with merchants

to grow our coverage in Italy;

• Embed our ESG strategy across

the company;

• Accelerate the education of

merchants, consumers and all our

stakeholders to the comparative

advantage of our APM proposition,

particularly given heightened

merchant sensitivity to both fuel

costs and CO

emissions.

Finally, I would like to take this

opportunity to thank our employees

for the dedication and determination

they have shown throughout this past

year, and during this current geopolitical

and socially challenging time for many.

I am also grateful for the support and

loyalty of our customers, partners,

and investors during this exciting and

challenging year.

Rafał Brzoska

Chief Executive Officer

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Our values:

We are driven by a passion for

innovation, responsibility, proactivity,

and respect in all our actions.

Our vision:

We are committed to redefining the

e-commerce market. By leveraging

our unique experience and success

in Poland, we are scaling our unique

service to new and important markets.

We want to give more customers in

more places a simpler, greener, and

more secure last-mile delivery service,

no matter where they live.

Our mission:

We enable innovative and sustainable

e-commerce solutions to customers

through strategic partnerships with

businesses and retailers. By thinking ‘out

of the box’, we ignite the passion and

professionalism that fuel ourgrowth.

Who we are:

GRI [102-1, 102-16]: We are InPost S.A.,

Europe’s leading out-of-home

delivery partner. We enjoy a growing

international footprint, providing

automated parcel machine (APM)

delivery services, direct-to-door delivery

services, pick-up drop-off (PUDO), and

fulfilment services to e-commerce

merchants.

Our purpose:

We amaze people, using the potential

of technology for the good of the

planet. We create sustainable services

and products that make sending and

receiving packages easier and more

secure for millions of customers every

day. We are committed to harnessing

the potential of emerging technology to

tackle climate change and reduce our

environmental footprint.

We are driven by a passion for innovation, responsibility,

proactivity, and respect in all our actions.

About us

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

2021 Highlights

Going public

GRI [102-7]: In January, we reached

another important milestone for the

company; InPost listed its ordinary

shares on Euronext Amsterdam to trade

under the symbol ‘INPST’ in Europe’s

largest ever technology IPO.

PLN 4,602m

Revenue in 2021

(+82% on 2020)

PLN 1,436.1m

Operating EBITDA

(+46% on 2020)

~12,700

Number of permanent and temporary

employees including contractors

517.6m

Number of parcel deliveries

(+67% on 2020)

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Enhancing ESG

As a growing international company,

we will use our technology, products,

and services to help tackle climate

change and create a better future for

all. Working in collaboration with all our

stakeholders, our new ESG strategy sets

out our ambitions.

Fast-tracking growth

As announced on July 1, we acquired

French-based Mondial Relay for

EUR 513 million. The deal for the

international delivery company is

part of our global growth strategy to

become Europe’s leading out-of-home

automated solution for e-commerce.

2,638,000

17,000

lockers

(+70% on 2020)

PUDOs in Mondial Relay network

20,367

Automated Parcel Machines

(+66% on 2020)

38,000

Integrated merchants in Poland

(+27% on 2020)

~8,000,000

Active mobile users in Poland

(+39% on 2020)

2021 Highlights

continued

InPost

out of the box

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

But we have much more to do. Our

ambition is to leverage our success in

Poland to scale our operations across

eight European markets, including

France, the UK, Italy, and Spain.

We provide a new vision for the “last-mile”

experience, partnering with business

and retailers to deliver innovative and

sustainable solutions to help meet the

goal of net zero carbon emissions.

InPost is accelerating e-commerce

penetration by providing deliveries

and returns that are quick, easy, and

reliable. Our landmark acquisition of

Mondial Relay is fuelling the expansion

of our already extensive APM network,

ensuring parcels are always safe and

ready for convenient collection.

As a sought-after partner for retailers,

InPost adds value to businesses and

helps to reduce their costs. We drive

consumer adoption and retention

by redefining the delivery experience

to ensure that the last-mile of each

customer’s purchase journey is positive

and efficient, reducing the CO

in a

retailer’s supply chain along the way.

We support retailers to facilitate cross-

border sales through our international

network, helping to grow and reach

new customers.

InPost’s use of digital technology and

data analysis makes the business agile

and highly responsive to changing

customer needs and market conditions.

Our award-winning InPost mobile app

allows consumers to redirect parcels,

track friends and family shipments, and

send parcels without labels.

InPost’s story began more than 20

years ago and since then the world has

changed significantly. We’re proud to

have been at the forefront of change,

and InPost’s ambition is to continue

leading the way; helping to shape the

low-carbon cities of tomorrow and

delivering better out-of-home delivery

for businesses and people everywhere.

Secure + accessible

For customers our service is better

because parcels are always in a safe

place and easy to access whenever they

want. Thanks to our extensive and secure

network of APM’s, customers can simply

pick the location that’s right for them,

and InPost takes care of everything else.

Sustainable + convenient

We recognise the importance of our

environment which is why sustainability

is embedded in our business model.

As a result, our delivery service emits

significantly less CO

. That’s great for our

customers who want to decarbonise

the supply chain, great for local

governments who want to improve

air quality, and great for customers

everywhere who get a more convenient

service, 24/7.

Efficient + controllable

For the last-mile of every single parcel

journey, our service is better because

we’re able to deliver six to ten times

more than conventional couriers

can carry. In Poland; we established

an incredible 98% record of next-day

delivery while customers enjoy

complete control over their parcels by

using the InPost Mobile app.

Innovative + simple

For the future of logistics, our service is

better because digital transformation

enables us to redefine the delivery

experience, with a simple, award-winning

app and a simple, easy-to-use service.

Customers welcome these innovations,

and they love using InPost services.

First + agile

For our own future as a business,

our service is better because it can

consistently deliver sustainable growth,

scale, and profitability. It’s a proven

model that uses advanced data analysis

to make InPost highly agile and able to

respond to changing customer needs

and market conditions.

Innovative use of digital

technology and data analysis

makes our business agile and

highly responsive.”

Adam Aleksandrowicz

Chief Financial Officer

From a small start-up in Poland in 1999, InPost has

become Europe’s leading out-of-home delivery partner,

making deliveries secure and convenient for millions

of customers every day.

OUT OF

THE BOX

OUR STORY

Reduction in carbon emissions in Poland

for APM vs. to-door delivery

up to

75%

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Secure +

accessible

Sustainable

+ convenient

Efficient +

controllable

Innovative

+ simple

First + agile

Out of

the box

delivering

better

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

FIND OUT

MORE ON P24

One of the first on the market to build an APM network.

For our own future as a business, our service is better

because it can consistently deliver sustainable growth, scale

and stability. It’s a proven model that uses advanced data

analysis to make InPost highly agile and able to respond

to changing customer needs and market conditions.

First + agile

Out of

the box

delivering

better

82%

Year on year

revenue growth

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

What we do

GRI [102-4, 102-2]: We are the leading

out-of-home e-commerce enablement

platform in Europe. Founded by

Rafal Brzoska, our CEO, in Poland in

1999, InPost provides delivery services

through a network of more than

20,000 APMs and to-door courier and

fulfilment services to e-commerce

merchants. Following our acquisition of

Mondial Relay, we also facilitate 17,000

pick up drop off (‘PUDO’) services.

GRI [102-4]: We remain the leading

e-commerce enablement platform

in Poland, with growing operations in

France, Benelux, Iberia, the UK, and Italy.

GRI [102-2]: We provide a cost-

effective and greener solution for

merchants which give customers more

convenience. In Poland, these include:

• APM products: deliveries to Parcel

Lockers and Service Points, including

pick up drop off sites. We support

individual customers and businesses,

including co-branded products for

Allegro, and a fast returns service.

• To-door products: deliveries to the

recipient – classic courier service.

To-door products are tailored to the

needs of specific segments, such as

individual and business customers.

We provide same-day and timed

deliveries and provide special

services such as Smart Courier, which

offers parcel forwarding, and Fast

Shipments for Allegro merchants.

• Fulfilment – comprehensive

warehousing, packaging, and

logistics service.

• InStore – packaging – sales of boxes

and packaging materials.

• eGrocery – delivery services for food

and FMCG products to dedicated

machines and to the recipient using

the InPost Fresh app.

Following the acquisition of Mondial

Relay, in France, Spain, and Benelux we

offer individuals and businesses PUDO

delivery of parcels, parcel deliveries

through APMs, and home delivery

through a third-party network.

In the UK, we provide APM deliveries

to individuals and businesses, while in

Italy we use a third-party partner to offer

PUDO and APM deliveries.

Our platform

Data and technology underpin our

operations. We have developed a highly

efficient technology infrastructure that

links all stages of the value chain, from

the first step to the last-mile. It offers

both retailers and customers a best-in-

class experience with a strong focus on

the scalability, security, and performance

of each platform component.

The Group’s technology platform core

consists of its central APM management

system and a transportation

management system.

~12,700

Number of permanent and temporary

employees including contractors

16,445

APMs in Poland

19.6m

Consumers using the InPost

service in Poland

517m

Parcels delivered annually

(424m in Poland and 93m international)

3,609

APMs in the UK and Italy

At a glance

38,000

Integrated merchants served in Poland

GRI [102-7]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

France

Spain

Portugal

Italy

Poland

Belgium

Netherlands

FIND OUT

MORE HERE

Our partners

Our business thrives on partnership, and

our partners thrive with us.

In 2021, we helped more than 38,000

integrated merchants with their delivery

needs. In Poland, we began a partnership

with Makro, a leading food retailer, to

support the launch of our new InPost

Fresh app, which expands on our parcel

delivery service to include fresh groceries.

We also signed deals with Polish

convenience store Żabka, to provide

pick-up locations in-store, and Shopee, a

popular online shopping platform from

Singapore, now making inroads into

Europe.

Meanwhile, we continue to facilitate

cross-border e-commerce on an

international scale. For example, we

support Vinted with their mission to

make second-hand first-choice. The

platform enables the world to sell, buy,

and swap second-hand wardrobe items –

and we help deliver them.

In the UK, we completed a significant

deal with Tesco to site our APMs at up to

500 of the supermarket’s locations, and

with the Westfield Group to add lockers

at their two shopping centres in London.

Key Milestones

1999 Founding of the Group

2007 Debut on the Warsaw Stock Exchange

2010 Installation of the first APM

2014 Start of cooperation with Allegro

2016 Launch of door-to-door delivery service

2017 Delisting from the Warsaw Stock Exchange

Acquisition by Advent

2020 Total number of APMs exceed 10,000

2021 Debut on EuronextAmsterdam

2021 Acquisition of Mondial Relay

Where we operate

GRI [102-6]: We have a growing

international reach and an aggressive

expansion policy designed to deliver

greater efficiency and speed with a

reduced environmental footprint.

We will continue to expand the number

of automated parcel machine locations

in cities as well as increasing our

presence outside metropolitan areas.

As of the end of 2021, 56% of the Polish

population lives within seven minutes

on foot of one of our APMs. Rural areas

in Poland were home to 29% of APMs –

adding a valuable service to those with

reduced postal opportunities.

Enhances

the market

Self-sustainable

team

Investing

for growth

50/50 local vs.

Group support

Start up

Identifying product market

fit – small teams with heavy

Group support

Today InPost is an

international e-commerce

and logistics company

with its roots in Poland. It is

increasingly perfecting the

lockers system, they really

know what works and what

doesn’t work, because that’s

what they’re also great at –

testing and learning.”

Marieke Bax

Chairman of the Audit Committee

Merchant mix in Poland

B2C Domestic ~88.7%

B2C International ~2.5%

C2X ~8.8%

At a glance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Gdańsk

Łódz

Wrocław

WARSAW

Poznań

Katowice

Kraków

Gdańsk

Łódz

Wrocław

WARSAW

Poznań

Katowice

Kraków

Gdańsk

Łódz

Wrocław

WARSAW

Poznań

Katowice

Kraków

7.2K

830K

10.8K

1.5m

16.4K

2.4m

56%

% of population within

a seven minute walk

of an InPost APM

APMs

Lockers

Density of APM network in Poland

2019

Density of APM network in Poland

2020

Density of APM network in Poland

2021

Achieved

50%

Achieved

At a glance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Mondial Relay contribution to profit

before tax from continuing operations

of the Group

1,079.8m 100.1m

PLN PLN

Mondial Relay contribution to revenue

after the date of acquisition in 2021

On 1 July the acquisition

of Mondial Relay for

€513m was completed,

representing a key

element of our growth

strategy towards

becoming the leading

out-of-home (‘OOH’)

e-commerce logistics

provider in Europe.

Mondial Relay

International expansion is a core part

of the Group’s long-term value creation

strategy. The Group strongly believes

in the international transferability of

the OOH/APM last-mile delivery model

combined with a strong focus on

merchant and end-user experience,

i.e. the core elements of the ‘flywheel’,

which drove InPost’s success in Poland.

While the Group also pursues an organic

expansion model, the M&A route

allows us to fast-track the development

of several necessary elements of the

value chain from scratch (e.g. brand

recognition, logistics network, parcel

volume, team-building) while focusing

on transforming the existing business

into a leading OOH player by leveraging

InPost’s experience in Poland.

• Presence in one of the priority

markets for the Group

• Existence of a nationwide logistics

network

• Brand recognition and end-user

advocacy

• Existing e-tailer (merchant)

relationships and significant

parcel volume

• At least some experience in

operating an OOH last-mile network

• Acquisition price allowing the

Group to realise significant

shareholder value-creation

When evaluating acquisitions, the Group looks for several

qualities which make an attractive acquisition target:

Due diligence of Mondial Relay fully confirmed its strong positioning

on all the above acquisition criteria. As of February 2021, it operated a

network of approximately 15,800 PUDOs under a strong brand, across

France, Benelux and Iberia, serving 156 million parcels. In France alone

the network comprised 11,000 PUDOs, while logistics were based

out of 24 depots and four hubs across the country. In the financial

year 2020, Mondial Relay achieved revenues of €437m and operating

EBITDA of €60m, meaning an attractive acquisition valuation.

At a glance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

We are delighted to have completed this strategically

significant acquisition. Mondial Relay’s extensive market

presence in one of Europe’s largest e-commerce markets

provides a tremendous opportunity for InPost to fast-

track our international expansion strategy. Together with

Mondial Relay, we will immediately become Europe’s

leading OOH solution for e-commerce with multiple levers

to accelerate our growth and create value for all our

stakeholders.

We welcome our Mondial Relay colleagues to the InPost

team and are excited to start our journey together as we

unlock untapped markets and re-define the last-mile

delivery experience for consumers.”

Rafał Brzoska

CEO, InPost Group

In 2021 focused works have been initiated across all pillars of the VCP to improve

logistics network coverage and deliver next day at a competitive price, with 300+

APMs already operating in France as at 2021 year-end.

Post-acquisition, the Group has implemented a focused,

transformational Value Creation Plan (VCP), focused on:

Area Description

Network

• Strong development of the OOH network in France based on

dynamic deployment of APMs across the country while maintaining

and expanding the existing PUDO network

Commercial

• Boosting sales and improving market share through development

of the sales team, leveraging pan-European merchant relationships

and developing new, innovative product offerings

Operations

• Improvement in quality and speed of service through investment

into the logistics network and implementation of lean principles

Marketing

• Revamp of the Mondial Relay brand and its approach to end-user

marketing e.g. through implementation of a mobile app

• Strengthening the management team as a key enabler for realising

business goals

At a glance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

How we are structured

InPost Technology S.a.r.l 12,000 EUR

100% InPost S.A. (société anonyme)

jurisdiction of incorporation: 22.06.2020, Grand

Ducky of Luxembourg, office: 70 Route d’Esch,

1470 Luxembourg, Grand Duchy of Luxembourg

Mondial Relay Société par Actions Simplifiée

Unipersonnelle (500,400.00 EUR)

100% - Integer France SAS (500,400.00 EUR)

office: Centre de Tri – ZAC des 4 Vents – 5 avenue

Antoine Pinay, 59510 HEM, France

InPost S.A. (société anonyme)

Public company date and jurisdiction of incorporation: 17.11.2020, Grand Duchy of Luxembourg,

office: 70 Route d’Esch, 1470 Luxembourg, Grand Duchy of Luxembourg

Modern Postal Services Ltd (CY) in liquidation

82.488 EUR. 100% - Integer.pl S.A. (82.488 EUR) date

and jurisdiction of incorporation: 11.10.2008, Cyprus office:

2 Sofouli Street, Chanteclair House, 8th Floor, Office 801,

1096 Nicosia, Cyprus

InPost sp. z o.o. 116.278.450 PLN

100% - Integer Group Services (116.278.450 PLN)

date and jurisdiction of incorporation: 13.02.2015,

Poland office: Wielicka 28, 30-552 Cracow, Poland

Foreign companies

Polish companies

InPost UK Ltd (UK) 1.000 GBP

100% - InPost Paczkomaty sp. z o.o. (1.000 GBP)

jurisdiction of incorporation: 31.05.2012, The United

Kingdom office: Unit C Boundary Park, Boundary Way,

Hemel Hempstead, Hertfordshire, United Kingdom,

HF2 7GE

Integer.pl S.A. 17.541.213 PLN

100% InPost S.A. (société anonyme),

date and jurisdiction of incorporation:

19.03.2007, Poland office: Wielicka 28, 30-

552 Cracow, Poland

Integer Goup Services sp. z o.o. 547.639.050 PLN

61.65% - InPost Paczkomaty (3337.597.200 PLN)

38.35% - Integer.pl S.A. (210.041.850 PLN) date and jurisdiction of

incorporation: 10.02.2015, Poland office: Wielicka 28, 30-552 Cracow, Poland

InPost Paczkomaty sp. z o.o. 31.675.000 PLN

100% - Integer.pl S.A. (31.675.000 PLN) date and

jurisdiction of incorporation: 18.04.2012, Poland office:

Wielicka 28, 30-552 Cracow, Poland

Integer France SAS 1.00 EUR

100% - InPost S.A. (1.00 EUR)

jurisdiction of incorporation: 21.01.2021,

France office: 3 boulevard de

Sebastopol 75001 Paris, France

InPost France SAS (F) in liquidation 300.000 EUR

100% - InPost Paczkomaty sp. z o.o. (300.00 EUR)

jurisdiction of incorporation: 04.02.2014, France office: 3 boulevard de

Sebastopol 75001 Paris, France

Locker InPost Italia Srl (l) 110.000 EUR

100% - InPost Paczkomaty sp. z o.o. (110.000 EUR)

jurisdiction of incorporation: 27.02.2014, Cyprus office: Via Roberto Lepetit

8/10, 20124, Milano, Italy

Giverty Holding Ltd in liquidation

100% - Granatana Ltd (10.000 EUR)

jurisdiction of incorporation: 07.10.2011, Cyprus office:

Thasou, 3 Dadlaw House 1520 Nicosia, Cyprus

Granatana Ltd (CY) in liquidation 9,200.48 EUR

100% - InPost Paczkomaty sp. z o.o. (9,200.48 EUR)

jurisdiction of incorporation: 23.06.2011, Cyprus office: Thasou, 3 Dadlaw

House 1520 Nicosia, Cyprus

GRI [102-3, 102-5]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Members

of the

Management

Board

Rafal Brzoska

Chief Executive Officer

and founder

Appointment

January 2021

Skills and experience

Mr. Brzoska is the founder of InPost and

shareholder at InPost S.A. He is also a

member of the management board of

Integer.pl, InPost Paczkomaty and other

companies within the Group. Mr. Brzoska

is furthermore director of Giverty Holding

Limited, Granatana Limted, CEO of AR

Holding sp. z. o.o. and FH FENIKS sp. z

o.o., member of the supervisory board

of Social WIFI sp. z o.o. Web2Print sp. z

o.o., Benhauer sp. z o.o. and Bright Future

sp. z o.o. and limited partner of WLW

Inwestycje sp. k., BVALUE Bridge sp. z o.o.

and BVALUE Unicorns sp. z o.o.

Appointment

September 2021

Skills and experience

Mr. Rouse joined InPost as Chief

Executive Officer International in

October 2020 following more than

20 years of experience in general

management, operations, mergers

and acquisitions, and go-to-market

leadership. Previously, Mr. Rouse was

the Group Chief Commercial & Revenue

Officer at Klarna Bank AB in Sweden

from 2015 to 2020, and held a number

of executive positions at American

Express and United Biscuits.

Adam Aleksandrowicz

Chief Financial Officer

Michael Rouse

Chief Executive Officer

International

GRI [102-8, 102-5, 405-1]

General

InPost S.A. is a public limited company

(société anonyme) incorporated and

existing under the laws of the Grand

Duchy of Luxembourg (the “Company”),

and together with its subsidiaries is

hereafter referred to as the “Group”.

It operates a two-tier board structure

consisting of a Management Board and

a Supervisory Board.

Composition of the Management

Board and the Supervisory Board

In 2020, most of the members of

the Management Board and the

Supervisory Board acted as members

of the management board and/or

the supervisory board of Integer.pl.

The composition below describes the

situation as of the Settlement Date.

Composition of the Management Board

Name Age Nationality Position Member since Term

Rafal Brzoska 44 Polish CEO/Chair of the Management Board/Management Board member 2021 2025

Adam Aleksandrowicz 50 Polish CFO/Management Board member 2021 2025

Michael Rouse 49 Northern Irish CEO International Business/Management Board member 2021 2025

Appointment

January 2021

Skills and experience

Adam Aleksandrowicz joined InPost

in 2017 as CFO of the Group. He is

the Group CFO and a member of the

management board of companies

within the Group. Previously, he was CFO

of American Heart of Poland from 2012

to 2016 and member of the supervisory

board of American Heart of Poland

from 2016 to 2018, Bioton and various

subsidiaries in Europe of AstraZeneca

and Teva Pharmaceuticals. He was also

a member of the supervisory board of

WSiP S.A., (book publisher) and vice

president of AHP Inwestycje.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Composition of the Management

Board and the Supervisory Board

Composition of the Supervisory Board

Name Age Nationality Position Independent Committee Member since Term

Mark Robertshaw 53 UK

Chair of the Supervisory Board/

Supervisory Board member Yes Audit Committee/Selection, Appointment and Remuneration Committee 2021 2024

Michael Roth 55 German and US Supervisory Board member Yes Selection, Appointment and Remuneration Committee 2021 2024

Nick Rose 41 UK Supervisory Board member No Audit Committee/Chair of the Selection, Appointment and Remuneration Committee 2021 2025

Ranjan Sen 52 German Supervisory Board member No n/a 2021 2025

Ralf Huep 60 German Supervisory Board member Yes n/a 2021 2023

Marieke Bax 61 Dutch Supervisory Board member Yes Chair of the Audit Committee 2021 2025

Cristina Berta-Jones 45 Romanian Supervisory Board member Yes Selection, Appointment and Remuneration Committee 2021 2025

Supervisory Board Composition

Mark Robertshaw is chairperson of the

supervisory board of Integer.pl (since 2017).

He is currently also chairperson of the

board of Vita Global Limited and a director

of Kensington Capital Global Industrials.

Michael Roth is a member of the

supervisory board of Integer.pl (since

2020). He is currently also member of

the board of Rent The Runway (since

2020), Fleetpride (since 2019), member of

the board for Lasership (since 2021) and

advisor to the board of Pattern.

Nick Rose is a member of the

supervisory board of Integer.pl (since

2017). He is currently also a managing

director of Advent International Ltd.,

member of the board of Mercury A

Capital Limited (since 2015) and of

Hermes UK and Germany (since 2020).

Ranjan Sen is a member of the

supervisory board of Integer.pl (since

2021). He is currently also a managing

partner at Advent International,

head of the German office and a

member of the European and Asion

Investment Advisory Committee of

Advent International. Furthermore, he

is currently a member of the board of

Dufry AG.

Ralf Huep is a member of the

supervisory board of Integer.pl (since

2017). He is currently also a managing

director of Circap Sp.z.o.o., Holistic Group

Holding Sp.z.o.o., Holistic Clinic Sp.z.o.o.

and Aslan Investment Sp.z.o.o, Amberger

& Co. GmbH, M&A Bauträger GmbH,

RH-Verwaltungsgesellschaft mbH, LH

Reitsport Verwaltungsgesellschaft mbH,

Gustav Pepenbrink GmbH and QIN-

Form GmbH Verwaltungsgesellschaft

and a member of the board of Plastic

Energy Global SL.

Cristina Berta-Jones also serves

as a member of the leadership

team of Picnic, an online grocery

company based in the Netherlands.

From 2005 to 2011, she worked

at Nokia, where she held various

sales and corporate development

roles. From 2011 to 2018, she held a

number of senior roles at Naspers, a

global consumer internet company

and one of the largest technology

investors in the world. From 2015 to

2018, she served as Chief Operating

Officer of Naspers’ B2C e-commerce

operations. The Supervisory Board

has nominated Ms. Cristina Berta

Jones for appointment based on

her proven expertise and directly

relevant experience across both the

technology and e-commerce sectors.

Ms. Jones holds a bachelor’s degree in

Mathematics and an MBA from Harvard

Business School.

Marieke Bax is a member of the

Supervisory Board and a member of the

supervisory board of Integer.pl (since

2021). She is currently also chairperson

of the board of Climate Transition

Capital (since 2021), chairperson of the

audit committee of Mediq (since 2022)

and Vion Foods (since 2015), chair of

the nomination committee at Frontier

Economics (since 2020), board member

of Xior Student Housing (since 2021),

and a member of the board of advisors

of the Faculty of Law at the University of

Amsterdam. She has extensive executive

experience as head M&A of Sara Lee

Corporation, as CFO of one of the first

Dutch e-commerce companies and as

founder of an investor relations firm.

Ms. Bax was the initiator of Talent to

the Top, a Dutch diversity initiative. She

holds a master’s degree in Law from

both the University of Amsterdam and

Cambridge plus an MBA from INSEAD.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

We have a powerful investor proposition backed by a highly

experienced management team and a history of success.

We have grown our out-

of-home network across

Polish and international

markets, including the

biggest e-commerce markets

in Europe. After acquiring

Mondial Relay, increasing

density of the existing network,

almost doubling the number

of machines in the UK and

deploying additional APMs in

Italy, the total parcel volume

increased by 67%.

We have developed and

integrated a new ESG policy

and framework. At the same

time, we have delivered a

greener solution for increasing

e-commerce delivery volumes,

while also reducing pollution

and congestion. A larger

number of parcel machines

means optimisation of

deliveries to the same address,

thus reducing the number

of delivery vans. Plus, the

development of the APMs and

PUDO can help prevent traffic

congestion. We have pledged

carbon neutrality in scope 1

and 2 emissions by 2025, with

a target of 2040 for scope 3.

Our technology-enabled

platform offers premium

solutions. Our award-winning

app is extremely popular with

almost eight million users

in Poland alone and was

the best-ranked app on the

Polish Google Play and App

Store. This year we launched

our grocery delivery app,

InPost Fresh, in Poland and

established the InPost delivery

app in the UK. Meanwhile,

our systems include package

ordering-fulfilment, contract

management and parcel

management.

Why invest

in InPost?

We are growing

We are innovative

We are environmentally

responsible

We are scalable

We benefit from multiple

avenues for sustainable

future growth with a highly

sustainable and exportable

business model. We believe

APMs are the key pillar

of success as well as the

strength of InPost’s brand that

represents our dedication

towards best user-experience

and quality.

We are profitable

We are a category leader in

the e-commerce market with

82% year-on-year revenue

growth and an EBITDA of

PLN 1,436.1m. Our scalable

business model enables high

growth and profitability, with

net profit growing from PLN

350.2m in the period ended

on 31 December, 2020 to

PLN 491.6m in the period

ended on 31 December, 2021.

With growing international

businesses our aim is to drive

profitable growth across all our

markets.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Our purpose-driven

approach

Achieved

through

Enabled

Delivered

We believe in our mission:

• We want to redefine the

e-commerce market

• To provide unique experiences

• To make everything simpler

Our ambitions revolve around:

• Innovativeness

• Reliability

• Responsibility

• Proactiveness

• Respect

• Sustainability

Our strategic plan delivers:

• Greater convenience

• Improved consumer experience

• Wider merchant adoption

• Scale economies

We provide a unique value proposition

to both merchant and end-user. We

continuously endeavour to improve our

products and services, and create and

maximise value for all our stakeholders.

Our vision & mission

To be the most customer-friendly and

cooperative business partner, providing

sustainable automated solutions for

e-commerce.

Our purpose & values

To amaze people by using the potential

of technology for the good of the planet.

Our growth strategy

To accelerate the ‘flywheel’ effect to

drive sustainable long-term growth.

Our business model

To capture the entire e-commerce value

chain, creating synergies and enabling

us to improve the experience of our

merchants and consumers.

FIND OUT

MORE HERE

FIND OUT

MORE HERE

Our culture

At the heart of InPost is its culture of innovation, inspiring collaboration and growth.

Supported by

GRI [102-16]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

We believe that creating

and sharing value with

our stakeholders is about

more than just financial

returns.

Through our sustainable proposition,

we have an opportunity to make a

positive contribution to tackling climate

change and reducing emissions. For

example, the carbon footprint of a

parcel delivered to a parcel locker in

Poland is up to 75% lower than for the

same package delivered by a courier,

based on the InPost carbon footprint

calculator

. And using one of our lockers

means there are fewer vehicles on the

road, reducing traffic, accident risk

and noise.

We are proud to contribute to the

communities in which we live

and work. As well as helping with

socioeconomic development, we

make an indirect contribution to the

prosperity of our communities through

various initiatives such as our InPost

Green City programme and employee

volunteering.

InPost offers fulfilling careers and

a range of competitive benefits for

employees. We also invest in providing

training opportunities for their personal

and professional development and

are dedicated to promoting employee

wellbeing. At the same time, we provide

tools and systems to make work and

decision-making easier and more

efficient.

A strong and increasing NPS of 75 in

Poland for parcel machines highlights

the value we bring to our customers.

The service we provide is shaped by a

deep understanding of customer needs

and our commitment to an exceptional

experience in the delivery market. The

convenience of our APMs combined

with a service that is inexpensive, easy

to use, and fast ensures we stand out in

the market.

Our partners also benefit from

contented consumers and the added

value we provide through data-driven

insights and innovative technology that

reduces their operational costs and

drives efficiency from billing to stock

management.

Our purpose-driven

approach

continued

The calculator was developed in cooperation with scientists from the Foundation for Economy and Public

Administration in Krakow, Poland and the Polish Academy of Sciences

We want to provide to our

employees systems and tools

to support their everyday work

in delivering the best service to

our customers and partners.”

Agata Jach

Head of HR

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

The COVID-19 pandemic

continues to influence

consumer behaviour

and has accelerated the

structural shift to a digital

economy.

GRI [102-15]: This retail evolution has

provided us with a strong tailwind,

providing new and timely opportunities

to deliver real value for our customers.

Consumers have embraced the added

convenience of online shopping

combined with a best-in-class delivery

experience. We believe that even after

the aftershocks of COVID-19 ease,

consumers will continue to shop online

in more significant numbers. That

makes our value proposition even more

potent, as consumers become more

attracted to convenient and sustainable

“last-mile” habits.

Retailers have seen a significant

reduction in the requirement for

physical retail space as customers

increasingly turn to the benefits of

virtual shopping. A new generation

of dedicated digital consumers has

prompted traditional retailers to

enhance their online strategies rapidly.

It’s no surprise, then, that established

online retailers are acquiring their

traditional counterparts and integrating

them into the digital space. As a result,

there is a pressing need for more

efficient and less expensive delivery

services that challenge more expensive

and labour-intensive to-door delivery.

Consumers and retailers alike are also

demanding greater sustainability in

delivering and receiving goods.

The COVID-19 pandemic has caused

global transportation bottlenecks across

Europe, with the potential to dent

consumer confidence while increasing

the cost of products at the same time.

Energy costs are rising, and the coal-

based energy supplies in Poland are

particularly susceptible to the impacts

of this, alongside the increase in the cost

of CO

emission certificates. Inflation

in the labour space is also a challenge,

accelerated by shortages on the supply

side and record low unemployment

rates pushing up wages.

If inflation continues to rise across

markets, as expected, we expect to see

slower growth in consumer spending.

However, reduced disposable income

may be amortised in the e-commerce

space. If consumers have less to

spend, they will look for less expensive

productsonline.

We expect slower growth over the

next 12 months due to continuing

issues as outlined earlier. Still, we are

confident that our business model will

prevail. InPost’s model is less labour

intensive – for example, our couriers

will leave many more parcels per stop

versus one package per stop in the

traditional model – therefore, we have

the opportunity to reflect that in our

lower pricing. This helps to differentiate

us from our competition.

Ukraine

Increasing uncertainty has driven

further macro-economic headwinds

following the Russian invasion of

Ukraine. Inflation rates have already

increased against previous expectations,

with food and energy prices most hard

hit. These are expected to remain high

as a result of supply disruptions caused

by the escalating conflict. The latest

market consensus forecast for Polish

GDP growth in 2022 is a drop by 1.4pp

to 3.1%.

In 2022, energy and food inflation

look set to further depress disposable

income and consumer confidence. This

is expected to weaken the Polish zloty,

driving price shocks on imports, and

further impacting inflation. Fuel prices

across Europe will continue to place

greater pressure on margins and cause

further disruption to supply chains.

Operating environment

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Inbound

logistics

Stock stored in

retailer fulfilment

centre/warehouse

Delivery order

created from

consumer

purchase

Transport to

regional sorting

hub

Order picking

from fulfilment

centre

Transport to

local distribution

hub

Transport to end-

customer

Warehousing

& fulfilment

Delivery & returns

First mile Last-mileMiddle mile

Transport to

local distribution

centre

Our business model

Our activities capture the entire e-commerce value

chain, creating synergies in first and middle mile

costs and enabling us to improve the experience

of our merchants and consumers.

What we do

GRI [102-9]: Using the

potential of technology for the

good of the planet

• APM delivery services, next-

day and weekend delivery.

• To-door delivery services to

e-commerce merchants,

where it delivers parcels

directly to the home

or office address of

consumers.

• Fulfilment services to

e-commerce merchants.

In case the end-customer is in proximity of origin point

InPost “last-mile” service

Return management

Proven record of

driving growth

Enabling greener solutions

for e-commerce

Innovative technology-

enabled platform

Attractive price,

competitive cost and

business model scalability

A strong

balance sheet

Our key strengths

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Our business model

continued

A sustainable and scalable

business with high margins.”

End users

GRI [102-15]: Best-in-class experience

with clear brand awareness of 80%, and

consumer NPS of 75 for APM delivery.

• Ease of process/delivery

• Convenience of APM pick-up and

drop-off

• Contactless, and social-distancing

friendly

• Most eco-friendly solution

• Fast delivery

• Low price

Our people

We strive to build highly qualified experts

and leaders who tie career development

with the success of the company. We

achieve this through attracting employees

with the best fit to our organisation, and

through creating an engaging culture with

a good employee experience.

We provided 13.5 training hours per

employee last year to make sure our

employees’ development supports our

growth strategy. Our employees have a

dedicated range of fringe benefits at ther

disposal on the WellTime cafeteria platform.

Merchants

Value-enhanced offering driving repeat

sales and end-user stickiness.

• Cost advantage

• Better consumer experience

• Ease of returns and stock management

• Delivery consistency

• Customer data

• Efficiency gains

Our communities

Our business makes contributions to

developing local communities in Poland.

We contribute to the socio-economic

development of the regions and make an

indirect contribution to the prosperity of

our communities We are also a member

of business organisations and those

promoting corporate social responsibility.

Our shareholders

Our strategy aims to provide high growth

and long-term returns to our shareholders

by opening growth avenues outside

Poland and delivering above market

returns on invested capital.

Responsible approach

FIND OUT

MORE HERE

Robust risk management

FIND OUT

MORE HERE

Clear strategy

FIND OUT

MORE HERE

Innovative and inclusive culture

FIND OUT

MORE HERE

Sound governance

FIND OUT

MORE HERE

How we share value with our stakeholders How we maximise value

Mark Robertshaw

Chariman of the Supervisory Board

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Building on our position, launching new

services, and capitalising on synergies

Successful integration of Mondial

Relay with UK acceleration and

a priority plan for other markets

Developing new services to drive user

stickiness and explore adjacencies

Embedding and highlighting ESG

throughout our operations

1. The strong InPost brand

2. Innovation culture

3. Keeping the pace and agility

4. Continuous operational improvement

7. Nurturing talent and appreciating people

who are the core value of InPost

5. Strong data usage and best-in-class mobile

applications

9. Creating sustainable value for the shareholders

with profitability above industry levels

6. Efficient collaboration and communication

across the markets

8. ESG strategy integrated with business strategy

VISION MISSION

ESG

NEW

SERVICES

POLAND

INTERNATIONAL

PILLARS

We are committed to redefining the delivery market.

By leveraging our unique experience and success in Poland, we are

scaling our unique service to new and important markets. We want

to give more customers in more places a simpler, greener, and

more reliable last-mile delivery service no matter where they live.

We provide innovative and sustainable e-commerce solutions to

customers through strategic partnerships with businesses and

retailers. By thinking ‘out of the box’, we ignite the passion and

professionalism that fuel our growth.

Our business model

continued

End-

consumer

Data and

technology

Sustainability

Growth

Greater convenience

Improved consumer

experience

Wider merchant adoption

Scale economies

Network roll-out /

tech investment

Lower unit costs

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Our strategy

GRI [102-2, 102-6, 102-15]: InPost’s

strategy is to maintain its profitable

growth and to continue to offer

merchants and consumers a

constantly improving delivery

experience.

InPost has built four pillars to support

its business strategy:

• Poland – continuing to cement

our leadership position, launching

new services and capitalising on

synergies

• International – successful integration

of Mondial Relay with UK

acceleration and a priority plan for

other markets

• New services – developing new

services to drive user stickiness and

explore adjacencies; and

• ESG – embedding ESG throughout

our operations.

We will underpin these pillars with

foundations of: technology, people,

data, a loyalty programme, partnerships,

and governance.

Our strategy

The Group’s strategy is to accelerate

the ‘flywheel’ effect to drive sustainable

long-term growth. The Group will

seek to achieve this through a

combinationof:

• Optimising its existing operations

and services,

• Increasing the population coverage

with new APM roll outs,

• Driving the adoption of its offering

to support a sustainable future,

• Expanding internationally through

a combination of organic

investments and acquisitions and

• Introducing additional products

and establishing a foothold in the

e-grocery market.

In addition, the Group aims to ramp up

its fulfilment offering to further enhance

its speed of delivery.

FIND OUT

MORE HERE

The Group’s strategy

is to drive sustainable

long-term growth.”

Filip Orliński

Head of Corporate Strategy

and Strategic Projects

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

InPost Strategy –

Furtherdetail

Leveraging Data Science to optimise

business processes

The Group continues to constantly

optimise its daily activities through

cooperation with an internal Data

Science Hub. As of 31 December 2021,

approximately eight million active

mobile app users, which is approximately

40% of online shoppers in Poland, the

6th largest e-commerce market in the

EU (after Germany, France, Italy, and

the Netherlands) with the prospect of

becoming the 5th in 2025

, and 38,000

merchants use its deliveryservices.

This year we further expanded

monitoring and forecasting capacities

enabling us to optimise operations

and enhance planning processes. We

also use our data to further personalise

content, and identify opportunities for

cross-sell and up-sell for both existing

and new services. We constantly work

to improve the parcel’s dwell time in an

APM and service quality; iin key areas

for Christmas 2021 we fulfilled the most

ambitious declaration of delivering 2.5

million parcels by December 22 arriving

in time for Christmas. This is in line with

our approach of setting the bar higher

and higher.

The Group made significant progress in

2021 in terms of unifying reporting and

implementing Business Intelligence

across countries; the Group aims to

further expand the usage of data and

further develop new solutions not

only for Poland and local markets but

for the whole Group. We are working

on combining internal sources with

external data providers and using best-

in-class methods to drive the value of

our operations.

Building on our strong position –

increasing the serviceable volume

and population covered with new

‘whitespace APM’s’ roll out

In 2021 we further improved the

population coverage in Poland. Scale

and density of the APM network

are critical drivers for consumer

convenience and operating efficiency.

APM network expansion ensures

that the Group’s services become

increasingly more attractive to end-

consumers, which in turn encourages

merchants to offer and communicate

InPost delivery methods. The Group

has a demonstrated track record of

successful APM deployment. As of

31 December 2021, 56% of the

Polish population was able reach an

APM location in seven minutes from

their home (walking time)

. As of

31 December 2021, the Integer Group

had more than 1.8 million million

lockers in urban areas and more

than 0.6 million lockers in rural areas

in Poland, where it also sees a large

opportunity to increase its presence. In

cities we work with municipalities in the

InPost Green City programme and put

more focus on indoor locations in order

to both provide greater convenience

and maximise space usage. The roll-out

of new APMs is supported by strong

data analytics and aimed at optimising

the customer experience, which has

driven growth in the past; the Group

expects that it will continue to do so in

the future.

The Group also focuses on increasing

the capacity of its already deployed

APM network. As extensions are a

cost-and-capex-effective way to grow

capacity without acquiring new

locations, the Integer Group increased

the average number of lockers per

APM from 139 at the end of 2020 to

148 as at 31 December 2021. Apart from

successfully developing multi-parcel

delivery, multiple refills and several

data-driven initiatives to increase

end-user engagement and foster

quick pick-up habits, the research

and development (‘R&D’) department

creates, in collabortion wih our partners,

new solutions, such as robotised

indoor machines that aim to increase

the volume handled on a limited

indoorspace.

In terms of international markets we

utilise our proven know-how, adjusted

to the local market conditions, to

successfully rollout the APM network.

Within less than six months from the

Mondial Relay acquisition we managed

to deploy over 300 machines in France,

as at the end of 2021.

Offering new products and new

adjacencies

Meanwhile, we will further capitalise

on opportunities to enhance the

e-commerce customer experience and

attract new users with the simplicity

and convenience of our delivery

service. To drive this, we will continue

to develop the services and products

we offer across each of our markets.

To improve consumer experience

with its delivery service, the Group is

constantly developing its mobile app.

As at 31 December 2021 InPost Mobile

had almost eight million users in

Poland. In 2021 pick-up time extension

for end-customers and labelless send

was introduced in Poland, and labelless

returns in the UK. While scaling up

weekend deliveries in Poland we

provided same-day delivery for free

in particular regions for customers’

convenience.

Our strategy

continued

Source: Statista 2020; We based the calculation on 20 million online shoppers in Poland (yoy of 4.6%. Source:

Euromonitor International Passport, January 2021. Source: Company, Market Reports

Source: Company information

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

InPost will continue to develop new

services, entering new segments to

become an end-to-end partner for

e-commerce and to provide the best

user experience for end-consumers

across all markets. New products can

be expected within the core delivery

services, as well as new areas such

as shopping financing services and

eco-solutions (with ReZip – reusable

packaging being currently tested).

To make the best use of the creativity of

InPost employees we are in the process

of launching InnovationLab, that will

facilitate innovation both coming from

within, as well as working with external

partners to test new ideas, many of

them connected to the green agenda.

InPost Fresh

InPost is changing its position in the

market from supporting third parties in

particular elements, to being an end-

to-end provider and running our own

process in terms of e-grocery in Poland.

In 2021 the e-grocery market size in

Poland was around PLN 5b in Poland

(Source: Company, Market reports

)

reaching around 2% penetration. Due

to COVID-19, 31% of e-grocery clients

increased their spend, and 50% of

those new to e-grocery claim they will

continue to shop this way. Double-

digit market growth is expected in the

upcoming years.

In 2021 we successfully piloted InPost

Fresh with Makro, offering both two-

hour express and same-day delivery.

With a dedicated team from 2022 we

will be working on scaling-up InPost

Fresh, both in terms of functionality as

well as coverage.

We will carry on growing the Fresh

Food category, an important value

and frequency-driver, but will

also investigate other segments.

Furthermore we will search for ways

to join forces with parcel operations to

further drive the profitability of Fresh

Food in the near future. The Cleaning

Supplies and Animal Feed are the first

categories to be added to Fresh Food,

and to start with. This will bring profits

and open doors for InPost Fresh in

Poland. To meet customer expectations

and to grow quickly we will introduce

new merchants and work on the

optimal operational model.

InPost fulfilment

The addressable fulfilment market

is expected to reach PLN 4.0b in

2026

. Market growth is due to both

increasing B2C parcel volumes, as well

as a growing willingness to outsource

fulfilment. The addressable fulfilment

market is dominated by merchants

with >1k parcels per month, where

fashion, electronics, and beauty are

particularly important segments. InPost

is redefining its fulfilment strategy to

meet the needs of the market.

Based on our research only 34% of

merchants surveyed know what third-

party fulfilment service is, and educating

the market is key to our success. From

this group around 6% of merchants

already outsource fulfilment, but

another 28% would consider working

with partners that will enable, support

and advise on the growth of their

businesses, beyond simple fulfilment

outsourcing, and we want to be such a

partner – an end-to-end e-commerce

partner.

In 2021 we continued to increase our

share of checkout (the total volume of

the Polish Group’s merchants using its

delivery services, divided by the volume

for which they used its fulfilment

services.

International Expansion

Our international activity is directly

supporting the overall business vision,

and delivering against our key success

pillars for each market. 1. Localised

product offering (role of the InPost

mobile app, definition of products

to be determined, working towards

D+1, green agenda and local brand), 2.

Retailer and partner coverage (client

segmentation, product offering by

segment, sales team coverage, pricing

management, share of checkout

activity, merchant integrations), 3.

Logistics & service quality, 4. Network

coverage (APM network design, PUDO

network design, scouting and landlord

Source: Company data, market reports

Our strategy

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

targets, deployment process, cross-

border service). Our ultimate goal is to

push other markets to a similar level of

maturity and operational effectiveness

as Poland, while recognising and

adjusting to local market characteristics.

We will also capitalise on the scale and

synergies realised from the integration

with Mondial Relay to drive cross-

bordergrowth.

• In France, we are progressing with

general integration activities – the

Value Creation Plan. Our focus is

on further development of the

last-mile network, enriched by the

introduction of APMs alongside

the existing Mondial Relay PUDO

business, increasing the French sales

team in order to increase our share

of the French B2C e-commerce

market, optimising and improving

quality of the French logistics

operations, investing in the Mondial

Relay brand as well as end-customer

solutions (e.g. mobile app). In order

to achieve the above, we will also

strengthen our Mondial Relay’s team

of managers and employees and

network of partners.

• In the UK, in 2021 we achieved a

significant milestone of over 3,000

APMs deployed, enabling us to

offer UK-based merchants a more

attractive proposition. Capitalising on

this milestone, in 2022 our focus is on

further acquisition of outbound (i.e.

address-to-locker) volume, leveraging

our pan-European merchant

relationships, while continuing to

enlarge our APM network. In 2021

we also launched a mobile app in

the UK, while 2022 will be focused

on growing its adoption among

consumers.

• In Spain, Italy and Benelux, which

are currently our nascent markets,

we will focus on laying out solid

foundations for investments in

the upcoming years. In Italy in

particular, we are already deploying

APMs, having 459 on the ground

at the end of 2021, and intend to

continue doing so in2022.

In order to leverage the merchant

relationships already in place, in 2021 we

established a dedicated pan-European

sales team to strengthen our local,

country-focused sales teams. Some

of our largest merchants (e.g. Vinted,

H&M and Inditex) offer their services

in a number of European markets in

which we are present, hence our aim is

to provide them with a comprehensive

account management as well as

product offering. The initiative is already

proving successful with an international

deal with Vinted, one of our largest

merchants.

ESG

ESG will also play a fundamental role

in our development. We have created

a new ESG strategy which is being

embedded across the Group at every

level and is a key component of our

business model. It incorporates trends in

e-commerce, the risks and opportunities

identified for the company, and areas

where a more structured approach is

required from stakeholders. The strategy

links to the United Nations Sustainable

Goals (SDGs) to create a robust,

comprehensive foundation on which to

apply the best practices in sustainable

business practices.

Summary

InPost delivers great convenience

and superior customer experience

to consumers, which drives usage

and adoption and consequently the

demand for more APMs and PUDO

services. As the Group continues to

expand its network of solutions, and

increase the density of its offering, its

services become increasingly more

attractive for consumers. As adoption

grows, so do volumes, driving better unit

economics and cash flow for

InPost, allowing it to accelerate its roll-

out of APMs and PUDO solutions, which

in turn leads to greater convenience for

both consumers and merchants. The

flywheel, therefore, creates a continuous

cycle, which has

accelerated the Group’s growth and

will continue to do so while offering a

greener solution for e-commerce.

We believe we will be a beneficiary

of the long-term growth in the

e-commerce of consumables tailwinds,

with InPost operations in the UK and

Italy already seeing positive growth.

With the acquisition of Mondial Relay,

InPost now has a presence in three

of the top four largest e-commerce

markets in Europe.

Success factors for our strategy

We have defined nine factors as critical

to successful implementation of our

strategy:

1. The strong InPost brand. Our brand

represents our dedication towards

best user-experience and quality.

We set ourselves ambitious goals,

which we constantly meet or exceed

resulting in our brand reaching a NPS

of 75 in Poland. We are there for our

merchants and clients when they

need us, offering fast deliveries even

during the Christmas period.

2. Innovation culture. InPost is well

known for continuous innovation; we

will continue to surprise and change

the market with our new products

and functionalities, increasing the

involvement of employees across all

levels of the organisation.

Our strategy

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

3. Keeping the pace and agility. As the

e-commerce market is constantly

changing we continue to be agile

and remain at the forefront of those

changes to support e-sales in all ways

possible.

4. Continuous operational

improvement. With growing

volumes, international expansion

and new products, we continue

to optimise and automate our

operations to reduce the costs and

provide a seamless experience.

5. Strong data usage and best-in-class

mobile applications. A structured

data organisation for enabling

growth, creating new solutions,

delivering operational improvements,

as well as for reporting and

monitoring, with a dedicated ,

growing mobile team.

6. Efficient collaboration and

communication across markets.

With the recent acquisition of Mondial

Relay and development of the UK

market, well established working

streams across the Group are key to

communicating and delivering the

InPost promise.

7. Nurturing talent and appreciating

people who are the core value of

InPost. Continuous investment in

succession planning and leadership

development at all levels of the

organisation, with dedicated

mentoring and development

programmes is key to scaling up and

efficient implementation of Group

strategy as well as allowing us to

quickly adjust to changing market

conditions.

8. Creating sustainable value for the

shareholders with profitability

above industry levels. Strong

financial focus on continuous

company value improvement, clear

reporting and sustained investments.

9. ESG strategy integrated with

business strategy. Strong focus on

ESG strategy divided into three main

pillars: We CHANGE the lifestyle

of tomorrow; we DELIVER low-

carbon e-commerce, we MOTIVATE

employees and business partners.

We see ESG as our license to operate and it’s actually integral

to the DNA of the firm. We welcome the European sustainability

directive and are developing KPIs which will help provide even

greater assurance to shareholders.”

Marieke Bax

Chairperson of the Audit Committee

Our strategy

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Poland

In 2021, there was strong growth in our

parcel market with a 38% uplift in the

number of parcels we handled, bringing

the total to 424.3 million. Of those, 354.8

million were APM deliveries – up 44%

and 69.5 million were to-door deliveries,

an increase of 15%.

We continue to benefit from the

flywheel effect that is central to our

strategy. We have added greater

convenience by providing more APMs

– up 53% on last year – including a 41%

increase in rural areas. We also added

extra capacity with the provision of 63%

more compartments.

Increased network-density and

enhanced productivity helped achieve

economies of scale – underpinned by

comparatively low labour costs. We now

have almost eight million InPost mobile

app users and have increased the speed

of deliveries.

We added some 8,000 new retailers

taking our total to 30,000 merchants,

giving us a market share of more than

46%

of the b2c market share in Poland.

We will continue to strengthen our

competitive advantage to support long-

term sustainable growth and maintain

our industry-leading position.

In 2021 we began a partnership with

Makro, a leading food retailer, to support

the launch of our new InPost Fresh app,

which expands on our parcel delivery

service to include fresh groceries.

We also signed deals with Polish

convenience store Żabka, to provide

pickup locations in-store, and Shopee, a

popular online shopping platform from

Singapore, now making inroads into

Europe.

Meanwhile, we continue to facilitate

cross-border e-commerce on an

international scale. For example, we

have tightened our cooperation with

global customers, including Shopee,

OLX and Amazon.

Our reputation in Poland as the

consumers’ preferred parcel delivery

service is fuelling a growth in new

contracts, alongside an increased focus

on direct sales.

International

A rapidly expanding client base, the

acceleration of our APM roll-out, and the

acquisition of Mondial Relay fuelled an

extensive increase in parcel deliveries in

2021. In total, we handled 93.3 million

packages throughout the year – up from

2.2 million in 2020, out of which 84.9

million markets with operations under

Mondial Relay Brand and 8.4 million in

the UK and Italy combined.

The acquisition of Mondial Relay

in July 2021 provided immediate

incremental growth in earnings and

cash flow, fast-tracking our ambition to

become Europe’s leading out-of-home

automated solution for e-commerce.

The deal has transformed the scale

and the trajectory for our international

expansion, where foreign markets

become the new key capital allocation,

while Polish Capex declines. We have

delivered on key strategic priorities,

and quickly established foundations to

transform Mondial Relay’s offering over

the coming years.

After the acquisition, we have increased

pick up drop off (‘PUDO’) capacity

and deployed our first 300 APMs in

France. To achieve network scale and

logistics quality, high capex is required.

Initial uptake and reduction in dwell

times have already proved positive.

PUDO services in France help reduce

the carbon footprint of a parcel and

significantly cut associated urban traffic.

As well as opening a major new hub to

serve the Paris metropolitan area, we

will continue to install APMs in France in

2022. By leveraging our existing network

of merchants and technology, we will

drive additional parcel volumes and

performance improvement.

In the UK, one of Europe’s largest

and highest penetrated e-commerce

markets, we gained momentum as

retailers sought to capitalise on our

consumer-centric, greener, faster, and

smarter last-mile delivery services. The

focus on the urban centres of London,

Manchester, and Birmingham, presents

a wide range of diverse opportunities to

increase our units across the UK.

We have partnered with retailers such

as Asos, Dune, New Look, JD Sports,

Karen Millen and Schuh, which all

want a convenient service, which is also

carbon-friendly and reflects positively

on their brands. We have also cemented

our partnership with Vinted, the popular

pre-owned online retailer to transform

their delivery experience.

Partners, such as Transport for London,

Tesco, WHSmith and Lidl, have placed

APMs across their locations.

We work with a diverse range of firms

to meet our logistics and supply chain

needs. In France, we work with a total of

124 transport companies, and more than

600 delivery companies, and have over

11,700 pick-up and drop-off locations.

In the UK, courier deliveries are carried

out by Hermes and CitySprint for all

products and services. We currently

have 50 separate suppliers for the whole

business in UK.

Business review

Source: InPost Q4 2021 trading update

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Business review

continued

Technology

As our pace of growth accelerates, our

technological capabilities ensure we

continue to thrive. We continue to invest

in our technology infrastructure and

innovation to deliver the best customer

experience.

In 2021, we have enhanced our back-

office operations and focused on

attracting and retaining the best

e-commerce and ‘tech’ talent across

our markets, creating a number of

recruitment ambassadors in our

technology teams.

Data analytics and technology remain

central to InPost’s growth. Our highly

efficient technology infrastructure

drives operational efficiency, linking all

stages of the value chain, and we are

committed to investing in its continuous

development.

The technology tools we provide to

clients help them with functions such

as contract management, payment

services, package ordering, and

fulfilment. Meanwhile, our intuitive

and accessible mobile app, offers

customers an easy-to-use service for

added convenience. The success of the

app was recognised in several awards

this year, including Best Logistic Tool

E-Commerce Poland Awards 2021 and

Gold Effie Marketing and Business

Solution 2021.

Meanwhile, we continue to invest in

research and development to ensure

our products and services meet the

needs and exceed the expectations of

our users.

Stakeholder engagement

GRI: [102-42, 102-43]

At InPost we engage with our

stakeholders at every stage of our

value chain: from designing a solution

to executing it in the market. We are

open to feedback, and it serves us to

improve services and grow, meaning

the flywheel approach is also applied

to stakeholder management. The

frequency of the communication with

stakeholders varies and depends on

the group, but for most is conducted

at least once a week. To provide a high

level of transparency, we use InPost

social media and other digital channels.

We have identified 9 key stakeholders

groups (see next page).

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Stakeholder Channels of communication Frequency of engagement Key topics

Employees Intranet, mailings, InPost News, InTalk,

posters, screens

Daily Business updates (financial results, targets, new projects etc.).

New products and solutions launch.

HR updates and new benefits.

Suppliers Mailing, online meetings, direct meetings,

fairs, informal networking

Daily Current information the proposition.

Terms of trade.

Local communities,

municipalities and NGOs

Online meetings, phone calls, e-mail,

direct meetings

Depending on entity, varies from a

few times a week to several times a year

Establishing cooperation.

Charity initiatives.

Industry Conferences and public information Several times a month Presentation of new products and services,

business information.

Merchants InPost social media and digital tools

(websites, mailing, apps), advertising

and educational campaigns, surveys,

direct contact

Daily Current information on services provided and the proposition.

Couriers Morning briefings, direct contact, push

notifications via dedicated app (branch

and HQ level), internet messenger, surveys

Daily Current information on the proposition.

Trainings, test and reviews.

Customers InPost social media and digital tools

(website, mailings, app, newsletters),

traditional and online advertising

campaigns, PR channels

Daily Presentaions of new products, services and initiatives.

Handling complaints and suggestions.

Media PR channels, InPost, social media

and digital tools

Daily Information on new offers, solutions, business results.

Replies to media inquiries.

Shareholders Meetings, online communications,

briefings

Daily Business update (performance, future financial

expectations, capital allocation etc.).

GRI [102-40, 102-44]: Stakeholder engagement

Business review

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Membership in the

Associations

GRI [102-13]: Together with our

stakeholders we initiate and support

projects and initiatives which we

perceive as vital to sustainable

development and consistent with

our strategy. We are also a member

of business groups and organisations

promoting corporate social

responsibility. In 2021 we joined:

Business Centre Club (‘BCC’). This

is a prestigious business club and

the largest individual entrepreneur

organisation in Poland. BCC gathers

more than 2,000 members (individual

entrepreneurs and companies)

representing various industries, jointly

controlling USD 30b in capital and

employing 400,000 people. BCC

also incorporates lawyers, journalists,

scientists, publishers, physicians,

members of the military and students.

BCC concentrates on lobbying activities

aimed at furthering the growth of the

Polish economy.

The French-Polish Chamber of

Commerce (‘CCIFP’). Established in

1994 as an association of entrepreneurs,

the chamber has been developing

continuously since then. CCIFP is

an independent, self-financing

organisation, currently supporting

almost 500 French and Polish

companies – it is one of the most active

bilateral chambers in Poland. CCIFP

makes a significant contribution to

the development of investment and

business activities in Poland and plays

an active role in contacts with state

administration bodies and employer

organisations. It is also an excellent

platform for the exchange of experience

and best business practices.

Employers of Poland. The oldest

and largest employers’ organisation

in Poland – established in 1989, they

represent 19,000 companies with over

five million employees. A significant

majority – 85 percent – are privately-

owned.

The strength of Employers of Poland is

based on communication with political

and economic decision-makers, as well

as in the number and diversity of its

members: associations, federations, and

companies. Employers of Poland work

for the common interests of employers

in member organisations – companies

who often compete on the market,

but who are well aware of the need to

work together for the common good of

employers and entrepreneurs.

Business review

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Financial review

SEGMENTATION

For reporting purposes, InPost is split

into four reportable segments and two

geographical areas.

Segments in Poland:

• APM segment – The APM segment

focuses on delivering of parcels to

automated parcel machines.

• To-door segment – The to-door

segment includes delivery of parcels

using door-to-door couriers.

Segments outside of Poland:

• Mondial Relay segment includes

APM business and PUDO points in

France, Spain, Belgium, Netherlands

and Portugal.

• International Other segment

includes APM business (delivery

of parcels to automated parcel

machines) in the United Kingdom

and Italy.

In addition to the above reportable

segments in Poland, another segment

consists mainly of marketing and IT

services provided for external customers

and the production and sale of APMs to

external customers.

The segments are based on the

structure of internal management

reporting of the Group to facilitate

decision-making concerning the

allocation of resources and assess

the performance of the operations of

the Group. Segment performance is

evaluated based on revenue and gross

profit or loss, measured consistently

with those in the consolidated financial

statements. Additionally aggregated

segments at the geography level are

assessed based on Operating EBITDA

and Adjusted EBITDA.

Revenue other

operating

income

2021 2020

Poland 3,453.4 2,510.3

APM segment 2,624.4 1,815.3

To-door

segment 731.5 634.9

Other

100.5 62.8

Inter-

segmentation

elimination

(3.0) (2.7)

International 1,148.8 17.7

Mondial Relay 1,080.0 –

Other 68.8 17.7

Total 4,602.2 2,528.1

Total reportable

segments 4,504.7 2,468.0

COMPARISON OF RESULTS

OF OPERATIONS FOR 2021

AND 2020

Revenue

Revenue increased by 82% (PLN

2,074.1m) from PLN 2,528.1m in 2020

to PLN 4,602.2m for year ended

31 December, 2021. The increase was

driven by the acquisition of Mondial

Relay, which contributed PLN 1,080.0m

to revenue following the completion of

the deal.

The Group continued to grow in each

segment. Without the new business

in like-for-like comparison, revenue

increased by PLN 994.1m, or 39%,

further growth of its business in Poland,

the UK and Italy.

Other operating income

Other operating income increased

by 42% (PLN 6.0m) from PLN 14.3m

at year-end in 2020 to PLN 20.3m

at 31 December, 2021. This increase

was primarily the result of higher

income from contractual penalties

and compensations, as well as – to a

lesser extent – higher income from

subsidies. The Group agrees certain

key performance indicators with the

courier partners that it engage in parcel

deliveries as subcontractors. These key

performance indicators set certain

standards for the InPost couriers with

respect to the quality of their delivery

services and are subject to a contractual

penalty if the agreed standards

are not met. As parcel volumes

increase, breaches of contractual key

performance indicators by courier

partners also increase. Consequently, as

a result of parcel volume growth during

the 12 months ended 31 December,

2021 compared to the same period in

the preceding year, the Group invoiced

more contractual penalties to its courier

partners.

APM segment

Revenue and other operating income

for the APM segment increased by 45%

(PLN 809.1m) from PLN 1,815.3m in 2020

to PLN 2,624.4m in 2021. This increase

in revenue was mainly driven by an

increase in parcel volumes in the APM

segment on the back of an acceleration

of e-commerce penetration in Poland,

as well as the efforts of the Group to

further optimise its APM network

and to contract new key and strategic

merchants. The price impact on APM

segment revenues was insignificant.

To-door segment

Revenue and other operating income

for the to-door segment increased by

15% (PLN 96.6m) from PLN 634.9m in

2020 to PLN 731.5m for the year ended

31 December, 2021. This increase was

driven by an increase in parcel volumes

in this segment on the back of an

acceleration of e-commerce penetration

in Poland, as well as the efforts of the

Revenue and other operating income are combined on a segment level in order to be able to reconcile to operating

profit on a segment level by deducting all costs.

Other consists mainly of APM production & sale (to third parties) and marketing and IT services (intercompany and to

third parties).

Transactions between segments are eliminated upon consolidation and reflected in the ‘inter-segment elimination’ row.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Financial review

continued

Group to contract new key and strategic

merchants.

Mondial Relay

Revenue and other operating income

from Mondial Relay segment accounted

to PLN 1,080m for the year ended

31 December, 2021.

Other international

Revenue and other operating income

for the international segment increased

by 289% (PLN 51.1m) from PLN 17.7m

in 2020 to PLN 68.8m in 2021. This

increase was mainly driven by higher

sales in the UK and – to a lesser extent

– Italy. The growth of the UK business

was mainly the result of implementing

a new strategy for the UK market, and

the integration of new business volumes

from strategic merchants.

Depreciation and amortisation

increased by PLN 253.6m in 2021, up

71%, from PLN 356.1m in 2020. This

increase was primarily the result of the

expansion of the Group’s APM network

and the related increase in the number

of APMs and parcel lockers, resulting in

an increase in the value of the Group’s

APM network on its statement of

financial position, as well as increases

due to Mondial Relay acquisition which

increase D&A costs by PLN 76.9m.

Raw materials and consumables

increased by 105% (PLN 45.7m) from

PLN 43.5m in 2020, to PLN 89.2m in

2021. This increase was primarily driven

by Mondial Relay acquisition which

resulted in PLN 34.6m additional

costs, in addition increased costs for

consumables, such as packaging,

envelopes, stickers and courier uniforms,

as well as an increase in energy costs is

a result of the expansion of the Group’s

APM and logistics network to handle

the increased parcel volume growth.

External services

External services increased by 96% (PLN

1,179.5m) from PLN 1,228.1m in 2020

to PLN 2,407.6m in 2021. This increase

was mainly driven by Mondial Relay

acquisition which added PLN 767.4m

to Group external services. Additional

increase was caused by an increased

use of external parcel delivery services

to handle higher parcel volumes in the

Group’s APM and to-door segments.

As a percentage of revenue, external

services costs increased from 49.0% in

the year ended 31 December, 2020 to

52.5% in the year ended 31 December,

2021, which is result of including the

Mondial Relay business model, which

operates as a lower margin PUDO

network in comparison to the APM

networks in Poland.

Taxes and charges

Taxes and charges increased by 367%

(PLN 7.7m) from PLN 2.1m in 2020 to

PLN 9.8m in 2021. Increase was driven

by Mondial Relay acquisition which

added PLN 7.3m of additional tax

impact.

Payroll

Payroll increased by 146% (PLN 292.6m)

from PLN 200.5m in 2020 to PLN

493.1m in 2021. This reflected the rise in

the number of employees supporting

the growth of the Group. This increase

was primarily driven by an increase in

the number of employees to support

the growth of the Group’s business,

Mondial Relay acquisition and Share

based programmes expenses. Mondial

Relay acquisition which resulted in the

increase of PLN 95.8m, share based

programs resulted in an increase of

PLN 82.4m, the remaining increase

was caused by a headcount increase

in Poland and International markets

by 36% as well as the minimum salary

increase in Poland.

Social security and other benefits

increased by 124 % (PLN 55.6m) from

PLN 44.8m in 2020 to PLN 100.4m in

2021. This increase was primarily driven

by the Mondial Relay acquisition which

resulted in PLN 31.8m of additional

social security costs as well as the

increase in the number of employees

and the increases in employee salaries

and benefits accompanied by higher

costs of personnel training in the Polish,

Italian and UK subsidiaries.

Other expenses

Other expenses increased by 142% (PLN

17.7m) from PLN 12.5m in 2020 to PLN

30.2m in 2021. This increase was driven

by higher parcel volumes, as well as

additional insurance costs resulting

from the Group expansion to the new

markets and also increases in insurance

premiums in the market.

Costs of goods and materials sold

increased by 40% (PLN 4.1m) from PLN

10.2m in 2020 to PLN 14.3m in 2021.

Other operating expenses

Other operating expenses increased

by 125% (PLN 8.4m) from PLN 6.7m

in 2020 to PLN 15.1m in 2021. This

increase was mainly the result of lease

contract terminations which resulted in

liquidation of lease assets amounting

to PLN 3.7m as well as increase in

unused production capacity of the new

manufacturing site in Poland where

APMs are produced which resulted in

PLN 2.4m of additional costs.

Impairment (gain) loss on trade and

other receivables

Net impairment gain on trade and

other receivables decreased by 264%

(PLN 10.3m) from revenue of PLN 3.9m

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

in 2020 to a loss of 6.4m in 2021. This

decrease was driven by individual

clients that as assessed by group are

unable to repay their receivables, this

was partially offset by lower expected

credit loss calculated on basis of

collective approach due to automation

of the client debt collection process

which led to lower DSO (days sales

outstanding).

Total operating expenses

Total operating expenses increased by

99% (PLN 1,875.2m) from PLN 1,900.6m

in 2020 to PLN 3,775.8m in 2021. This

increase was primarily the result of the

Mondial Relay acquisition as well as

growth of the Group’s business, which

led to increases in external services and

payroll costs, as described above.

Operating profit

Operating profit increased by 32%

(PLN 198.9m) from PLN 627.5m in 2020

to PLN 826.4m in 2021. This increase

was primarily driven by a substantial

increase in revenue which was greater

than the increase in total operating

costs as a result of the growth of the

Group’s business and increased parcel

volumes which leads to positive effects

in the degressive cost model.

Gross profit

Gross profit increased by 64% (PLN

843.7m) from PLN 1,319.2m in 2020 to

PLN 2,162.9m in 2021.

Gross profit 2021 2020

Poland 1,941.7 1,329.0

APM segment 1,667.5 1,074.0

To-door

segment 230.8 198.3

Other

43.9 58.1

Inter-

segmentation

elimination

(0.5) (1.4)

International 221.2 (9.8)

Mondial Relay 250.2 –

Other (29.0) (9.8)

Total 2,162.9 1,319.2

Total reportable

segments 2,119.5 1,262.6

APM segment

Gross profit for the APM segment

increased by 55% (PLN 593.5m) from

PLN 1,074.0m in 2020 to PLN 1,667.5m

in 2021. This increase was primarily

driven by a 43.5% parcel volume growth

in this segment. As a result of increased

parcel volumes, the Group achieved

lower costs per parcel as a result of the

benefits from operating leverage such

as higher efficiency by the increased

automation at its sorting hubs and

branches and the degressive courier

remuneration system.

To-door segment

Gross profit for the to-door segment

increased by 16% (PLN 32.5m) from

PLN 198.3m in 2020 to PLN 230.8m in

2021. This increase was primarily driven

by a 14.9% parcel volume growth in

this segment. As a result of increased

parcel volumes, the Group achieved

lower costs per parcel driven by higher

efficiency in its logistics network such as

increased courier efficiency (i.e. couriers

increasing their daily parcel shipping

capacity), and at its depots by the

increased automation at its sorting hubs

and branches.

Mondial Relay

Gross profit for Mondial Relay segment

accounted to PLN 250.2m for the year

ended 31 December, 2021.

Other international

Gross profit for the international

segment decreased by 196% (PLN

19.2m) from a loss of PLN 9.8m in

2020 to a loss of PLN 29.0m in 2021.

Although revenue in the international

segment increased, the increase was

more than offset by higher logistic costs

per parcel as a result of a new contract

with one of the Group’s international

courier partners in the UK. However,

these higher logistic costs will decline

per parcel if the parcel volumes further

increase, as this new agreement

contains an arrangement that lowers

the price per parcel as the parcel

volumes progress. Additionally, the

increase in revenue was also offset by

unfavourable exchange rates between

the British Pound and Euro on the one

hand and PLN on the other.

Finance income

Finance income increased by PLN

16.0m, to PLN 16.1m for the year ended

31 December, 2021, from PLN 0.1m for

the year ended 31 December, 2020.

The increase was the result of a PLN

15.4m foreign exchange gain which

resulted from favourable exchange rates

between the British Pound and Euro on

the one hand and PLN on the other.

Finance costs

Finance costs decreased by 21% (PLN

34.8m) from PLN 164.5m in 2020 to

PLN 129.7m in 2021. This decrease

reflected favourable exchange rates

between the British Pound and Euro

on the one hand, and PLN on the other

(in year 2020, unfavourable exchange

rates resulted in PLN 60.0m exchange

rate loss). This effect was partially offset

by higher interest costs of PLN 49.2m,

resulting from APM network expansion

(higher IFRS 16 lease balances) and new

Loan agreements and Bonds issuance

in 2021.

Other consists mainly of APM production & sale (to third parties) and marketing and IT services (intercompany and to

third parties).

Transactions between segments are eliminated upon consolidation and reflected in the ‘inter-segment elimination’ row.

Financial review

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the boxManagement report

Sustainability report

Financial statements

Corporate governance

About the report

Profit before tax

Profit before tax increased by 54% (PLN

712.8m) from PLN 463.1 in 2020 to PLN

712.8m in 2021 as a result of the factors

described above.

Income tax expense (benefit)

Income tax expense increased by PLN

109.9m to PLN 221.5m for the year

ended 31 December, 2021, from PLN

111.6m for the year ended 31 December,

2020. This change was primarily due to

the increase in profit before income tax

in the year ended 31 December, 2020

and unrecognised deferred tax assets

from losses incurred in the UK.

Profit from continuing operations

increased by PLN 139.8m to PLN 491.3m

for the year ended 31 December, 2021,

from PLN 351.5m for the year ended

31 December, 2020, as a result of the

factors described above.

Profit from discontinued operations

amounted to PLN 0.3m for the year

ended 31 December, 2021, as compared

to a loss of PLN 1.3m for the year ended

31 December, 2020, resulted from

liquidation of subsidiaries in Brazil

and Malaysia, and deconsolidation of

a Subsidiary in France which resulted

from loss of control as subsidiary went

under liquidation and is controlled

by state appointed liquidator. While

several operations were discontinued

in the years ended 31 December, 2017

and 2016, no further operations have

been discontinued since. Most of the

costs of winding-up these discontinued

operations were incurred in the years

ended 31 December, 2017 and 2016,

but the Group still recognises income

and cost from discontinued operations

as the winding-up of certain of these

discontinued operations in the years

ended 31 December, 2016 and 2017 are

still ongoing. However, the remaining

costs of these discontinued operations

are not expected to be material

(approximately PLN 1m).

Net profit

Net profit increased by 40% (PLN

141.4m) from PLN 350.2m in 2020 to

PLN 491.6m in 2021 due to the factors

described above.

Operating EBITDA

Operating EBITDA increased by 46%

(PLN 452.4m) from PLN 983.6m in 2020

to PLN 1,436.1m in 2021, primarily as a

result of an increase in revenue, which

was partially offset by an increase in

operating costs, as described above.

Adjusted EBITDA

Adjusted Operating EBITDA (calculated

as operating EBITDA plus costs related

to the recognition of the incentive

program) increased by 64% (PLN

632.6m) from PLN 993.7m in 2020

to PLN 1,626.4m for 2021. Operating

EBITDA Margin decreased by 7.7 pp

to 31.2% in 2021, from 38.9% for the

year ended 31 December, 2020. This

decrease was partially driven mainly

by Mondial Relay acquisition which is

running lower margin PUDO delivery

network in comparison to high margin

APM network in Poland.

Adjusted Operating EBITDA Margin

decreased by 4.0 pp to 35.3% for the

year ended 31 December, 2021, from

39.3% for the year ended 31 December,

2020.

Operating EBITDA per geographical

area

Poland

Poland’s operating EBITDA increased by

44% (PLN 454.6m) from PLN 1,027.8m

in 2020 to PLN 1,482.4m in 2021. This

increase was primarily the result of the

revenue growth in the Group’s APM and

to-door segment, partially offset by an

increase in general costs by PLN 488.3m,

or 33%, to support the further growth

and development of its business.

Other international

Operating EBITDA for the international

segment decreased by 183% (PLN

80.5m) from a negative Operating

EBITDA PLN 44.1m in 2020 to a negative

Operating EBITDA of PLN 124.6m

in 2021. Although revenue in the

international segment increased, the

increase was more than offset by higher

logistic costs per parcel as a result of a

new contract with one of the Group’s

international courier partners. However,

these higher logistic costs will decline

if parcel volumes increase, as this new

agreement contains an arrangement

that lowers the price per parcel when

higher parcel volumes are obtained by

the Group. Additionally, the increase in

revenue was also offset by favourable

exchange rates between the British

Pound and other currencies, as well as

additional investments in general costs

(such as sales and marketing) to support

the growth of the international segment

of the business of the Group.

Financial review

continued

Sustainability

report

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

FIND OUT

MORE HERE

We believe that to

develop as a company and

market leader, we must

listen to the needs of our

customers, employees,

and business partners.

We want to tap into the

potential of technology

to shape a new, more

sustainable reality

together. With creativity

and innovation, we want

to change the lifestyle

of tomorrow, change

cities, accelerate climate

change mitigation and

adaptation, and empower

people and businesses.

Our journey to sustainability

InPost aims to change online shopping behaviour to

create greener communities and more sustainable

deliveries, by reducing last-mile journeys and emissions.

90%

reduction in CO

emissions in rural areas

relative to to-door deliveries

Source: Environmental & Sustainability Report, On

behalf of InPost UK Limited December 2019

For almost 75%

of our customers

it is important for

InPost to take

action to increase

its positive impact

Towards a

sustainable

future

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

EMPLOYEES

Very important Important

Not important

Neither agree nor disagree

41%

47%

CUSTOMERS

41%

33%

14%

12%

INVESTORS

53%

42%

EMPLOYEES

Very important Important

Not important

Neither agree nor disagree

41%

47%

CUSTOMERS

41%

33%

14%

12%

INVESTORS

53%

42%

As we conduct regular

dialogue with our key

stakeholders, we understand

that for 88% of our employees

and 74% of our customers

it is important for InPost

Group to take action to

increase its positive impact

and contribute to sustainable

development.

We listen carefully to our investors

who raise the importance of strategic

actions towards climate footprint

reduction. We want to tap into the

potential of technology to shape a

new, more sustainable reality together.

With creativity and innovation, we want

to change the lifestyle of tomorrow,

change cities, accelerate climate

change mitigation and adaptation,

and empower people and businesses.

Towards a

sustainable

future continued

For 88%* of employees it is (very)

important for InPost Group to take action

to increase its positive impact

FIGURE 1 – ESG materiality survey results (I, 2022)

74%* of customers find it

(very) important for InPost Group

to take actions aimed at increasing

its positive impact

95%* of investors find it (very) important

for InPost Group to take actions aimed

at increasing its positive impact on the

environment

* Sum of ”very important’’ and “important’’ responses. ESG pulse check, Survey conducted in January to February 2022, 1009 respondents.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

InPost is perceived by

stakeholders as a leading

brand in the e-commerce

market (90%), stakeholders

as standing out from the

competition (87%), leading on

the e-commerce market (85%),

constantly developing and

innovative (82%)

. This is how I’d

imagined this company, back in

2006. We have set the bar high

and we have reached it. Today

we redefine the landscape

of e-commerce and we are a

significant partner within the

value-chain of leading global

consumer brands including

Amazon, Vinted-CCC and

Modivo. What would happen

if InPost did not exist? In our

home market we deliver HALF

of all newly generated parcels

We add around PLN 6b yearly

to the national economy,

where at least half is NEW

value-added. We are the most

climate-friendly model of

delivery available on the market

emitting 75% less CO

than

traditional to-door services.

Looking forward to 2025,

2030 and 2050 I want InPost

Group to become a leader

of green and sustainable

e-commerce, a role model

for others. What will happen

in future thanks to InPost’s

presence? An APM can be

something more. A recycling

point where customers bring

electronic devices that they

no longer use. A sensor of air

quality in big cities. There’s a

lot more to come. And to do

that we need to collaborate.

GRI [102-12]: With that in mind,

we have joined recognised

and trustworthy initiatives

such as UN Global Compact,

EVCOM programme in France

and one of the first in the

industry - Science Based

Targets Initiative funded by

CDP, UNGC, WRI and WWF.”

Rafał Brzoska

CEO, InPost Group

The impact we have

and the role we can play in

sustainable development

ESG pulse check, conducted in Jan-Feb 2022, 1009 respondents.

Comparison with both the regional median and historical market trends in Poland shows that InPost’s parcels were

“extra” parcels, that would not materialise without the introduction of our business model.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Sale SortingFulfilment Collection Receipt ReturnsLast-Mile

MERCHANT EMPLOYEE/COURIER CUSTOMER

Transport

The impact we have and the

role we can play in sustainable

development continued

• New, innovative services

• Packaging innovations

(closing loop, recycling)

• Quality of services

• Accessibility of APMs/PUDOs

and geographical coverage

• Cyber security and high

technology standards

• Low-carbon last-mile delivery

• Energy-efficiency on sites and of APMs

• Health and safety standards

• Integrated management systems

• Employee development and engagement

• Diversity at workplace

• Couriers, education and engagement

• Strengthening cooperation with suppliers

and others in the value-chain

• Technology driven-efficiency in value chain

• Wide geographical coverage

and accessibility

• Seamless customer

experience

• Large selection of merchants

• New services aligned with

e-commerce development

and sustainability drivers

• Collaboration with local

communities and cities

Key products brief

Parcel locker

Deliveries to Automated Parcel

Machines (‘APM’) and pick up

drop off (‘PUDO’)

Courier to-door

Deliveries to the recipient –

classic courier service

Fulfilment

Comprehensive warehousing,

packaging and logistics

services

InStore – packaging

Sales of boxes and packaging

materials

eGrocery

Delivery services for food and

FMCG – to dedicated machines

and to the recipient, using the

InPost Fresh application

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

FIGURE 2:

Distribution of value retained and

distributed (2021) GRI [201-1]:

Distribution of value retained and

distributed (2020) GRI [201-1]:

Economic value retained

Economic value distributed

2021

2.35 bn

51.3%

2.23 bn

48.7%

2020

1.95 bn

77.7%

0.56 bn

22.3%

Economic value retained

Economic value distributed

2021

2.35 bn

51.3%

2.23 bn

48.7%

2020

1.95 bn

77.7%

0.56 bn

22.3%

Our highly efficient

business model is based

on a flywheel effect that

drives superior growth.

We deliver value by improving the

convenience and efficiency of the

delivery experience, and empower

growth in our partners through the

services we provide.

GRI [201-1]: In 2021, the economic

value generated by the whole InPost

Group with Mondial Relay was over

PLN 4.6 bn; 48.7% of which was

distributed to stakeholders (26pp

more than in 2020), Shareholders and

employees were the groups receiving

the largest shares, with shareholders

receiving 61% of the total (up 25pp on

2020), and employees receiving 27%.

The impact we have and the

role we can play in sustainable

development continued

Please be aware that the data presented above is not

consistent with EBITDA.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

We also benefit the markets in which

we operate. In Poland, our main market,

InPost is responsible for delivering half

of all newly generated parcel

. As a

result, we estimate that we added circa

PLN 1.9b

to the national economy,

with another PLN 2b contributed by

our subcontractors.

Meanwhile, the

increase of e-commerce efficiencies

adds another PLN 4b. We can

conservatively assume that at least half

of it is new value-added, that would

not be delivered by other, less efficient,

companies. We also contribute to the

emergence of new businesses, which

accounted for around PLN 1.125b in

additional consumption in 2020, further

boosting Poland’s GDP.

With the ESG factors at the very

heart of the business, we help to

secure a sustainable future for all our

stakeholders. We understand our

role in the face of the current climate

crisis. 98.6% (KPI for turnover) of our

activities is taxonomy-eligible. Our

logistics operates through our own

fleet as well as a network of more than

7,600 independent couriers in total

(this means that 100% of our couriers,

who are also drivers, are independent

contractors). GRI [302-1]: In Poland we

use energy in 45 of our own warehouses

and fulfilment centres as well as

through data centres

. In 2021, for

example, we have used 80101 MWh;

288364 GJ to power our home-market

operations.

This is equal to the energy consumption

of almost 9200 homes (based on EU

average). Our innovative business model

already lowers GHG emission up to

75% compared to traditional door-to-

door deliveries. We want to do more to

support green transformation of the

economy than ‘greening’ the last-mile

experience. As one of the first capital

groups in CEE and e-commerce we

have joined the Science Based Targets

Initiative. Our goal is to achieve full

climate neutrality of the whole value-

chain (scope 1, 2 and 3) in all markets by

2040 and within next five years to close

the loop in our own operations.

We plan to expand scale, accessibility

and proximity of our services for

customers. This will increase the

potential for us to have a beneficial

impact on climate change.

Optimisation of deliveries permits

gradual reduction of shipment prices by

30%, which in turn facilitates purchases

by individuals who, for financial reasons,

could not afford them before. As a

result, we help the market to open up

for previously excluded consumers. We

support sustainable consumption. The

convenience of nearby lockers, which

additionally help facilitate returns, gives

consumers additional reassurance.

Even though for many years InPost has

been active in the environmental and

social field, and has been recognised as

an aware and engaged company, 2021

was a groundbreaking year. Alongside

the IPO and Mondial Relay acquisition,

an ESG strategy was developed, and will

be integrated into business processes to

align with the principles of sustainable

development.

Thanks to our ESG strategy,

InPost Group will:

• implement a structure of

management of ESG issues,

including the responsibilities of

the Supervisory Board and the

Management Board

• develop and implement a number

of policies and strategies, including

the strategy for decarbonisation,

social engagement, and the

environmental policy, as well as

implementing solutions, which

have proven successful in Poland, in

other markets

• monitor progress in meeting

targets

• report progress to internal

and external stakeholders on an

ongoing basis

Comparison with both the regional median and historical market trends in Poland shows that InPost’s parcels were “extra” parcels, that would not materialise without the introduction of our business model.

Value-added is the most important component of GDP which, according to the methodology of national accounts, accounts for more than 85% of this indicator (the other components are taxes on products less subsidies to them).

Subcontractors other than couriers, who are included in direct impact; further impact estimated based on the Input-Output model.

Franchise branches are not included in the calculations.

The impact we have and the

role we can play in sustainable

development continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Our ESG ratings

Sustainalytics 25.3 Medium risk

MSCI BBB

ISS ESG C-

FTSE 2,3

GRI [103-1, 103-3]: In creating our first

five-year ESG strategy, we leveraged the

strength of the Group’s value-creation

model, with its focus on continuous

improvement, efficiency, and excellence

in the customer experience. As a

purpose-driven company, we strongly

believe that a robust ESG framework

and governance structure are essential.

We have a need for a more structured

approach that will help accelerate

the growth of InPost and enable a

Europe-wide impact. The ESG strategy

is adapted to the business model

and fully integrated with the business

strategy. This means that it takes into

account trends in e-commerce, covers

the risks and opportunities identified for

the company, and encompasses areas

where a more structured approach is

required from stakeholders. In order to

help maximise real impacts, the ESG

strategy both aligns with regulations

(preparing for future regulatory

change) and links to the United

Nations Sustainable Goals (SDGs) and

international initiatives such as the UN

Global Compact to create a robust,

comprehensive foundation on which to

apply the best practices in sustainable

business.

We have identified three areas where

we can most effect positive change;

for our clients, our people, and for the

planet. These form the main pillars of

our ESG strategy. For each pillar, we have

set out our ambitions, commitments

and targets. Each is accompanied by

specified timeframes, scope, reach, and

KPIs.

We have a positive contribution to

make to the global transition to a more

sustainable and equitable future for

all. We are aligned to the SDGs and

have identified areas where we can

have a real impact, using our strengths

and experience to create solutions to

tackle climate change, promote gender

equality, improve the quality of life in

cities, and combat the geographical

exclusion of rural areas.

Our strategy and commitments

Our ESG strategy creates a framework that will prepare the

company for future challenges and meet the expectations

of our diverse range of stakeholders.

We aren’t starting from scratch. InPost has been active in the

environmental and social field for many years, recognised as an

environmentally aware and socially engaged company. However, 2021

was a groundbreaking year. Alongside the IPO and Mondial Relay

acquisition, we developed an ESG strategy to support the Group’s

integration. Today, ESG is one of four priorities in our business strategy.

So, ESG, climate risks, and value-creation will act as a guide to our

growth alongside maintaining our number one position in Poland,

accelerating opportunities on a pan-European scale, enhancing the

customer experience, and delivering new services. We are well-placed

to build on this success and do better tomorrow.”

Adam Aleksandowicz

CFO

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

IN_

PLANET

IN_

CLIENT

IN_

PEOPLE

PILLARS

WE DELIVER

low-carbon e-commerce

WE CHANGE

the lifestyle of tomorrow

WE MOTIVATE

our employees and business partners

AMBITION

We are climate-neutral across the

markets where we operate. With this, we

not only protect the planet, but also care

for the quality of life of our customers.

We change the lives of our customers and

their environment encouraging them to be

more sustainable.

Our strength lies in the skills and commitment

of our employees and business partners,

which is why their satisfaction is one of the

cornerstones of our activity.

THEMATIC

AREAS

• We are committed to decarbonisation,

through the successive improvement

of operational efficiency

• We support the second-life of

products and raw materials

• We create innovative and sustainable

services

• We improve the quality of life in cities

• We are part of local communities

• We are committed to the development of

our employees

• We support the growth of our business

partners

• Diversity is what lets us grow

COMMITMENTS

• We declare to be NET ZERO until

2040 in scopes 1, 2 and 3 in

accordance with SBTi

• By 2024, we will ensure that 100% of

packaging in our own operations will

come from recycled materials and it

will be possible to process them in

recycling processes

• We set the direction of changes in

the industry by implementing at least

two sustainable consumer solutions in

e-commerce a year

• InPost is the first choice of customers

(industry leadering NPS in all markets)

• We support our local communities

by creating community involvement

programmes reaching two million

beneficiaries

• The level of commitment of our employees

will not be lower than 50% (according to the

Kincentric methodology)

• We will employ 1,000 employees and

couriers as a result of the implementation

of programmes related to equalising of

opportunities on the labour market

• We create a workplace that thrives on

diversity. Strong support for gender equality

is a foundation for our growth (30% of the

Management Board and N-1 of the InPost

Group are women by 2026)

Our UN

Sustainable

Development

Goals

Our ESG strategy framework

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

InPost image research, Kantar, X 2021

In comparison with 1990

Finding solutions is gaining urgency

as e-commerce grows rapidly and is

estimated to make up 21% of total

global retail spending by 2025.

Being the leader in the e-commerce

ecosystem in Europe means taking

responsibility for the challenges

that lie ahead and creating new

standards. Although APMs and

PUDO business models are the most

sustainable forms of delivery – creating

GHG emission levels 75% and 20%

lower than door-to-door deliveries

respectively – we constantly strive to

improve our contribution to sustainable

consumption and carbon neutrality.

This also reflects customer expectations.

In 2021, 84% of parcels delivered

by InPost in Poland were sent to

APMs. Moreover, in a recent survey 80%

of respondents said they felt InPost

APMs are an environmentally-friendly

shipping method.

At each stage of APM or the PUDO

experience, from placing an order, to

providing transport and collecting the

package, we have already launched

services and solutions that enable us to

reach our zero-emissions and circularity

targets.

OUR COMMITMENT

WE DECLARE TO BE NET ZERO

UNTIL 2040 IN SCOPES 1, 2 AND 3

IN ACCORDANCE WITH SBTI

We do not want the operations of the

InPost Group to negatively impact the

planet or contribute to climate change.

We want to support progress towards

goals set by Paris Agreement, reclaimed

at COP 26 – EU carbon neutrality in

2050, 55% reduction of emissions by

2036, and to work to reduce the gap

between existing emission-reduction

plans and what is required to reduce

emissions, so that the rise in the global

average temperature can be limited to

1.5 or 2 degrees. That is why we will strive

to achieve climate neutrality, which

we understand as limiting emissions

in absolute terms to a minimum and

neutralising residual emissions in the

whole value chain (scope 1-3), based on

the commonly recognised reduction

approach indicated by the GHG Protocol.

We want to validate our goals by the

Science Based Targets initiative.

BY 2024 WE WILL ENSURE THAT 100%

OF PACKAGING USED IN OUR INTERNAL

OPERATIONS IS SOURCED FROM

RECYCLED RAW MATERIALS AND WILL

BE RECYCLABLE

We want InPost to operate with respect

for the planet’s natural resources.

Therefore, where we do have an influence,

such as our internal operations, we intend

to implement a closed-loop circulation

of raw materials to prevent waste

generation. In our internal operations, we

use the same type of packaging as those

offered for sale, along with packaging

used in the fulfilment area, including

cardboard boxes, foil, fillers, and tapes.

IN_PLANET

We deliver low-carbon

e-commerce

In the e-commerce sector we believe reducing

greenhouse gas (GHG) emissions and waste from the

production of packaging materials are two of the most

important issues we face.

100%

Recycled packaging materials by 2024

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Direct impact on SDGs specific targets

SDG TARGET

GRI [103-2]: InPost GROUP

CONTRIBUTING ACTIONS -

EXAMPLES

Integrate climate change measures

into national policies, strategies

and planning (13.2)

• ESG strategy implementation

• SBTi commitment

By 2030, substantially reduce

waste generation through

prevention, reduction, recycling

and reuse (12.5)

• Electro Return programme

• Multiuse packaging (co-operation

with Modivo)

• Blue Angel certified foils in use

Encourage and promote effective

public, public-private and civil

society partnerships, building on

the experience and resourcing

strategies of partnerships, data,

monitoring and accountability

(17.17)

• InPost Green City programme

launch and expansion

• United Nations Global Compact

membership

• Partnership with Transport for

London

Our Contribution to SDGs

We focus on areas of significant

importance to quality of life, as

indicated by the SDGs: SDG 9 (Industry,

Innovation, and Infrastructure), SDG

12 (Responsible Consumption and

Production), SDG 13 (Climate Change),

and SDG 17 (Partnerships for the Goals).

The most concerning for the markets

where InPost operates is the stagnation

of progress on tackling climate change

(SDG 13). As one of the most complex

issues, it also requires the most

urgent action.

For each of our major markets, there

will be different paths to achieving our

goals at country-level. For example,

Poland’s level of recycled materials

usage lowered from 11.6% in 2015 to

9.8% in 2019 (SDG 12, Responsible

Consumption and Production). SDG 9

reached its expected target with major

progress in France and the UK, with

Poland facing significant challenges, yet

still progressing with expenditures on

R&D growing from 1% of GDP in 2015

up to 1.3% in 2020. SDG 17 is on track

in France and the UK in regard to the

expected speed of transformation.

Three targets for SDG 9 are covered under Pillar 2 –

We CHANGE the lifestyle of tomorrow.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Change in CO

emissions (kt) in 2020

-160

-140

-120

-100

-80

-60

-40

-20

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

Share of InPost shipments replacing traditional couriers

How We Impact the Planet

Our objective is to grow while

reducing our negative impact

on the environment. Thanks to

the APMs business model, InPost

operations contribute to the reduction

of e-commerce’s carbon footprint.

Compared with traditional courier

deliveries, the APMs delivery system

emits up to 75% less CO

than to-

door in Poland services. Even if half

of InPost parcels are new streams,

lower emissions from shipping that

we took over from traditional couriers

contributed to our reduction of the

overall balance of emissions by 47 kt

in 2020

. Moreover, thanks to

InPost, customers in Poland alone have

made 100 million short walks to collect

their parcels instead of using a car or

public transport. This adds to another

significant emission reduction.

In France, we provide a similar

environmental benefit with our PUDO

services. They reduce the carbon

footprint of a parcel by 20% and

decrease urban traffic resulting in 22%

fewer vehicles per km

. This is why 70%

of Mondial Relay’s customers believe

that the PUDO solution is the most eco-

friendly delivery method compared to

delivering parcels directly to the home.

In alternative reality, the

parcels handled by InPost

are not shipped.

InPost’s operations lead

to extra CO

emissions of

43 kt in 2020.

InPost takes over 50% of

shipments handled by

traditional couriers.

InPost’s operations help

avoid extra CO

emissions

of 47 kt in 2020.

All shipments handled

by InPost are sent by

traditional couriers.

InPost’s operations help

avoid extra CO

emissions

of 137 kt in 2020.

The calculation is rested on an assumption that unsent products were produced, i.e. we only look at emissions

related to transport. Another question is whether InPost generates more demand for merchandise with a high

carbon footprint or that manufactured in an environmentally-friendly manner. Emissions data related to courier

services and InPost shipments are based on emission calculator - InPost v2.6. Analyses of the socio-economic

impact of InPost operations in Poland made on the basis of the latest updated data from the Office of Electronic

Communications (for 2020). Due to the lack of data for 2021, it was impossible to update the analyses.

1 2 3

Scenario 3

Scenario 2

Scenario 1

Assuming that InPost took over 50% of parcels previously handled by traditional couriers. The calculations are

based on an assumption that the non-shipped products were actually manufactured, i.e. we only compare transport-

related emissions. Data on emissions related to courier services and shipments completed by InPost are sourced

from InPost’s Emissions Calculator v2.6 for Poland.

OpinionWay study on the delivery habits of private individuals: Home delivery vs pick-up points conducted by

Mondial Relay - January 2021

70%

of Mondial Relay’s customers believe

that the PUDO solution is the most

eco-friendly delivery method

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

10k

2020

2021

Polish subsidiaries

tCO2e

Total direct emissions of GHGs

+82%

10k

2020

2021

Polish subsidiaries

tCO2e

Total direct emissions of GHGs

+82%

10k

15k

20k

25k

30k

Total indirect emissions of GHGs

2020

2021

Foreign countries (FR)

tCO2e

+50%

10k

15k

20k

25k

30k

Total indirect emissions of GHGs

2020

2021

Foreign countries (FR)

tCO2e

+50%

50k

100k

150k

200k

300k

250k

Indirect emissions SCOPE 3 of GHGs (tCO2e)

Total indirect emissions of GHGs

2020

2021

Polish subsidiaries

2020

2021

Foreign countries (FR)

tCO2e

+26%

Figure 3 Scope 1 emissions GRI [305-1] Figure 4 Scope 2 emissions GRI [305-2]

Figure 5 Scope 3 emissions GRI [305-3]

What is our climate footprint?

GRI [305-1, 305-2, 305-4]: We are

aware that transportation is the most

polluting sector in Europe when it

comes to emissions (28% of emissions

comes from transport). Domestic

transportation emits 820 MtCO

e a year,

accounting for 21% of EU emissions

To emit this much CO

, a plane would

have to circle the earth approximately

230 thousand times. As a result we are

actively monitoring our environmental

impact in this area. We monitor GHG

emissions in scope 1, 2 and 3 (in line

with GHG Protocol methodology)

within the markets of key importance

to our organisation: Poland and France.

We will start monitoring emissions in

other markets from 2022. Cumulative

emissions in 2021 for scopes 1 and

2 were 33770.97 tCO

e (PL). It is the

equivalent to that produced by driving

137m km, or between London and

Warsaw almost 84 times. The highest

emissions of the Group are recorded

in scope 3, or the indirect emissions

in the value chain, which are mainly

associated with fuel consumption of

courier vehicles (external), but also with

the production of parcel machines (used

in markets where InPost operates) and

the purchase of equipment and raw

materials. Energy-related emissions,

which are another significant source

of greenhouse gases, or scope 2,

Net-Zero Europe report by McKinsey&Company.

Carbon footprint from the entire company value-chain calculated separately for Poland and France.

The carbon footprint for a parcel delivered to-door is on average 0.659 kg CO

, for the whole route of the parcel and 0.294 kg CO

of this is attributable to only the last-mile. The

average result for deliveries to automated parcel machines is only 0.229 kg CO

over the entire route and only 0.075 kg CO

for the last-mile. Source: InPost Footprint Calculator v.2.6.

known as the “last-mile” – our emissions

in Poland are up to 75% lower than

those of competitors delivering parcels

in the to-door system.

At InPost, we understand the challenges

related to climate change. In 2021,

we analysed the resulting risks and

opportunities for our organisation

(TCFD section on page 103).

amounted to 24998.6 tCO

e (PL) in 2021.

(the equivalent of 100 million km or

driving Warsaw to London more than 61

thousand times). In 2021, the emission

factor per package remained at a similar

level as in the previous year, which is

0.57kg CO

/parcel

in Poland and 0.48kg

in France (compared to our industry

peers, emissions from 0.2 kg/ letter for

companies shipping mostly letters up to

0.8kg/parcel for parcel shipment)

. The

total increase in emissions in 2021 for

the entire organisation is related to the

launch of new logistics centres and the

delivery of a larger number of parcels (an

increase from 310 m to 518 m).

InPost Group’s ambition is to offer zero-

emission delivery within less than two

decades. Our goals are supported by our

involvement in the international Science

Based Targets (SBTi) initiative, which

promotes responsible and transparent

setting of carbon footprint reduction

goals based on scientific knowledge.

Lower emissions natively support

the business model implemented in

our organisation: deliveries to parcel

machines and collection points. It allows

us to achieve much lower emissions

than the logistics of traditional courier

companies delivering parcels directly to

customers. According to estimates, at

the final stage of parcel delivery – also

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

infrastructure solutions. In the case of

InPost in Poland, this means, amongst

other things, placing logistics centres

in buildings with a BREEAM certificate

of Good as a minimum (most of all

own branches have such a certificate,

and each subsequent one will be

certified at least at the same level, or

the BREEAM Excellent level). These

buildings are subject to external audits

and an integrated energy management

system ISO 50001 is planned to be

implemented. In France, all new building

will be BREEAM, HQE or LEED certified.

SBTi is gradually becoming

the global standard for

decarbonization, which is why

at InPost we cannot aim for

anything less. As the majority

of our emissions are in scope

3, meeting decarbonisation

targets will require close

cooperation with our

business partners along the

supply chain. It presents

another opportunity to grow

and transform together.”

Izabela Karolczyk-Szafrańska

Marketing Director, InPost Group

What actions do we take?

GRI [103-2]: Issues are critical to us.

This manifests itself through five

implemented environmental targets

with measurable KPIs to reduce

the environmental impact of our

operations by the end of 2022, defined

in our environmental policy. They are: (1)

a reduction of exhaust emissions from

our vehicles (2) a reduction of plastic

and paper waste; (3) to provide services

in environmentally friendly conditions;

(4) an improvement of energy

efficiency; (5) continuous improvement.

In Poland the envinronmental policy is

linked to all policies of the Integrated

System and is managed in accordance

with ISO Standard 14001. In 2022

we continue to set coherent and

integrated environmental governance

in the whole Group based on best

market practice and recognized

standards. However, in France we

concentrate on energy efficiency,

waste management and carbon

footprint as stated in key policies

(Regulatory energy audit NF EN 16247

Standard, Waste Sorting 5 Streams

Decree 2016-288 and Carbon Footprint

policy). GRI [302-1]: As a basis, we track

our energy consumption levels: total

energy consumption for Poland and

France was 52,069.5 MWh in 2020 and

88,644.8 MWh in 2021 (70% increase).

The most important step on the way to

meeting our commitment was joining

Science Based Target Initiative (SBTi).

This means in 2022, we will be working

on the development of emission

reduction pathways based on scientific

modelling in reference to the GHG

Protocol, which will consider the growth

plans for InPost Group. Furthermore,

the pathways are revised on a regular

basis so that they can be adapted to the

evolving situation and company’s needs.

This means the climate neutrality target

we set for InPost Group considers the

company’s growth plans, and indicates

tools ensuring the flexibility of reactions

to the evolving business environment.

We have already achieved Mondial

Relay’s commitment to the EVCOM

programme, whereby Mondial Relay

adopted an emissions reduction goal

of 8% over the next three years. The

company also implemented several

solutions contributing to GHG emissions

reduction: more than 95% of the

transport vehicle fleet complies with the

Euro 5 and 6 standards, which provide a

new restriction in terms of atmospheric

pollution that reduces the quantity

of pollutants emitted by heavy goods

vehicles. Furthermore, 40% of Mondial

Relay’s fleet (company and service

vehicles) is made up of hybrid vehicles.

Knowing the sources and scale of

emissions in each scope, we take the

most significant effort in three areas

such as vehicles, APMs and logistics

centres energy efficiency.

Although delivery to APMs is the most

sustainable form of courier delivery, we

are still implementing new solutions

to gradually minimize our impact on

the environment. That is why we are

already launching innovations that

will make APMs themselves a tool for

achieving carbon neutrality.

In 2021, we started testing

autonomously powered APMs that are

equipped with photovoltaic panels.

They do not use the power grid (which,

despite varying national power mixes,

usually involves consumption of energy

from coal or other fossil fuels). Instead,

they operate on the basis of renewable

energy that they have produced

themselves. In addition, in cooperation

with Green Way, we will, wherever city

space allows, install electric vehicle

charging stations near the APMs and

similar solutions will be provided for

InPost logistics centers. The process of

building the charging stations network

started in 2021 and will be continued

in following years (see best practice).

Another example of green investment

are screenless APMs only operated

remotely via the InPost application that

will further reduce associated emissions

previously spent on screens (see best

practice). InPost also plans to further

install air quality sensors (80 devices of

this type have already been installed

in 2021, mostly in cities participating in

InPost Green City programme), anti-

smog paving stones, and using plants

that absorb air pollutants alongside

APMs. They also absorb rainwater, and

this ecosystem is cooling APMs, thus

decreasing energy consumption which

finally results in decreasing emissions.

An important tool for reducing energy

consumption is investing in certified

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Outcome of assessment developed by InPost in Poland in 2020.

We expanded our delivery and service fleet of electric

vehicles by 250 in Poland this year. It includes the

Mercedes e-Sprinter, and in 90% Nissan Voltia e-EN200

with capacity up to 10m3 which cover major Polish

cities: Warsaw, Krakow, Lodz, Wroclaw, Poznan, Gdansk,

Bielsko-Biała, Zielona Góra, Szczecin, Torun, Bydgoszcz,

Katowice, Opole, Częstochowa and Piotrków Trybunalski.

BEST PRACTICE

Let’s RE-charge

To achieve climate neutrality, we take

a broad view of reducing emissions

and do not limit ourselves only to the

implementation of APMs powered by

renewable energy. In cooperation with

Green Way, we will develop a network

of AC and DC electric vehicle charging

stations. We want them to supply not

only InPost’s growing electric car fleet

but also to be generally accessible to

residents living in the vicinity of parcel

lockers. As 50% of car owners declares

their willingness to buy an EV

, we

strongly support the development of

public EV infrastructure. What’s more,

we plan on investing in our internal

EV chargers network – all 30 InPost

branches in Poland are to be equipped

with such devices.

Our efforts have already been

appreciated – we were awarded a

special prize at the e-Mobility Media

Awards and were recognised as a

Brand of the Year 2021 by the Polish

Association of Alternative Fuels.

GRI [305-5]: What’s most important is

that we have already delivered nearly

eight million parcels via the EV fleet and

diminish emissions by 356,87 TCO

e in

2021.

“If we want to deal effectively with

climate challenges, we must make

green resources, such as renewable

energy, become even more widely

available, ceasing to be only a luxury.

The implementation of infrastructure

solutions, such as chargers for

electric cars at APMs, for example in

frequently frequented places, is one of

the most important steps on the way

to the systemic change of residents’

expectations, as well as the way we

think about our urban spaces.”

Rafał Czyżewski

CEO, GREEN WAY

BEST PRACTICE

Less is more

Our research and development team

works on the constant improvement

of solutions that have already been

implemented. One of the solutions

currently being tested is the screenless

APM. Thanks to the elimination of the

traditional screen and the use of a QR

code scanner, we save space that can

be used for more lockers. It will be

equipped with motion sensors which

will activate the device only after it

senses the presence of an approaching

client. It will also have a set of solar

panels that will enable it to self-charge

and thus make it independent from

the grid (even in highly unfavourable

weather conditions). All these

innovations contribute to the significant

reduction of energy consumption

by over 63%

and a decrease in raw

materials usage, thus making screenless

APMs far more sustainable. It’s another

step on the path to becoming carbon

neutral. The machine will be fully

compatible with the InPost app.

After a successful pilot phase, screenless

APMs will be deployed on a wider scale.

“The screenless APM is one of the

solutions that will play a role in

InPost’s decarbonization pathway.

A lower impact on the environment,

higher efficiency, an even better user

experience – these are improvements

in the three most crucial areas

for InPost. Apart from lower

energy usage, we perceive it as an

opportunity to broaden the access to

InPost services in distant locations

with limited access to utilities.”

Wojciech Mazur

Head of Global APM Network

Development

Screenless APM uses 36.5 W while NEW FM

OUTDOOR model (the most popular model

of parcel lockers) uses 100 W, data for APMS

charged with 230V.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

What is our waste footprint?

[GRI 301-1, 301-2]: In retail, e-commerce

sales are expected to grow annually by

6.3% globally between 2021 and 2025

As the e-commerce market grows,

so does the use of materials such as

stretch foil. As an “e-commerce enabler,”

we see for ourselves the importance

of reducing the consumption of

packaging materials and raw materials

used in online shopping. When it comes

to strech foil in 2021 we used 11.64t of

this material. According to the Ellen

McArthur Foundation, less than 14%

of the nearly 86mt of plastic packaging

produced globally each year is recycled.

To improve those results, in 2021 we

introduced recycled materials to our

services, which means 127t of poly

mailers used came from recycled

materials in 2021.

Packaging materials are not the only

category of used materials in InPost

Group. A significant portion of the

materials are the raw materials needed

to build the APMs. In 2021, we used

magnelis, aluminum, carbon black

steel, and stainless steel. A register of

materials used for the construction of

APMs will be kept in forthcoming year.

[GRI 306-1, 306-2]: Most of the identified

waste is derived from sorting and

storage operations (cardboard and

foil) and are largely non-hazardous

and recyclable (cardboard). Despite

having appropriate regulations listing

prohibited contents of parcels, there

are still cases of customers sending

prohibited substances, which in case of

damage to parcels generates hazardous

waste. Although as a company we have

no possibility to directly influence the

number of such cases, we notice its

annual decrease.

We strive to use reusable or recyclable

packaging in our sorting and storage

facilities. We also selectively collect

waste in our facilities and offices. Our

environmental policy is to reduce the

use of paper and plastic.

We do not identify any threats of

waste generated for the environment

as we work with reputable waste

management companies that comply

with local legislation.

[GRI 306-3]: InPost Group generate

several types of waste. 99% of waste

is generated by non-hazardous waste

of three kinds: municipal mixed waste

(generated by employees), paper and

cardboard packaging, and plastics

(generated by work processes coming

mainly from the process of transporting

shipments).

Table 1 Waste generated in Poland in 2021

[GRI 306-3]

Waste

composition

Waste generated

(composition)

Total weight in

tonnes

in 2020

Total weight

in tonnes

in 2021

Non-hazardous Municipal mixed waste 6,479 11,104

Non-hazardous Paper and carboard packaging 752 1,253

Non-hazardous Plastic/stretch foil 342 383

Hazardous Non-regulatory shipments 22 28

Total 7,595 12,769

https://www.statista.com/forecasts/220177/b2c-e-commerce-sales-cagr-forecast-for-selected-countries

In 2021, there was a significant increase in the amount of waste compared to 2020 due

to the increase in business activity, especially in the area of parcels handled, as well as

the expansion of the branch network from 54 to 61 locations.

Where is there waste in our transportation process? Couriers

transport smaller parcels in cardboard boxes. If a parcel gets

damaged during transport or if a cardboard box gets wet, for

example due to the spillage of substances from an irregular

shipment, such parcels are repacked into new packaging and

damaged cardboard boxes are stored in our warehouse as waste.

In the case of plastic/stretch foil, waste is generated because of

wrapping pallets with packages, which are protected against

falling out during transportation. The more parcels we have in

the network, the more pallets we need, so in case the number of

metal bars is limited, the branches use wooden carriers. Wooden

pallets need to be wrapped with foil from the bottom up, so that

the parcels do not fall out during shipping, therefore requiring

more stretch foil. Less than 1% of waste is hazardous waste from

non-regulatory or damaged shipments. If the sender or recipient

is unable to accept the shipment in person, we have the right to

dispose of the shipment in accordance. Even though we constantly

educate our customers how to pack, along with what you can

and cannot put in the package, we unfortunately still come across

these types of shipments.”

Bogusław Kryska

Head of the Health and Safety Department

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Because some materials are hard

to recycle, InPost UK launched a

joint venture with the online beauty

shop Lookfantastic.com which

will allow customers to send back

hard-to-recycle plastic packaging by

dropping it off at their local InPost

Locker, at their convenience.

• We have introduced Blue Angel-

certified poly-mailers which consist

of 80% recycled plastic. In 2021, they

already accounted for 78% of sales

of all our foils in December – the

peak season.

• Every year we increase the number

of more durable carriers such as

metal grates in which shipments are

transported.

• We reuse cardboard boxes in our

warehouses and branches. In

addition, work is underway on the

implementation of FSC-certified

cardboard.

What actions do we take?

[GRI 306-2]: An important factor

contributing to the achievement of

climate neutrality is the optimisation of

the use of raw materials for efficiency to

finally “close” their circulation in supply

chains. Also with such a high level of

waste generated by our business, we

feel it is our responsibility to reduce it

as much as possible. To address this, we

are taking steps to reduce our impact in

this area.

In the field of shipping and main

operations:

• We transform toward circularity by

cooperation with our customers: At

the end of 2021 we announced an

introduction of reusable packaging

with possibility for the customer

to return it via an APM – the most

important achievement in circularity

implementation, implemented

in cooperation with Modivo. can

be used up to ten times, and they

are already made from recycled

materials. It is a breakthrough on

the Polish market and a response

to one of the greatest challenges in

the e-commerce industry (see best

practice).

BEST PRACTICE

RE-zip to close the loop

Going circular with packaging is

becoming crucial for e-commerce

operations. This is why InPost has teamed

up with Modivo, the fashion retailer from

CCC Group’s eobuwie.pl, to introduce

Poland’s first reusable packaging system

for online retailers. After receiving their

order, Modivo customers can return the

package by visiting an APM and scanning

a label to send it back to InPost, where

it is disinfected and then returned to

the retailer. The packages are adjusted

to the product size, further improving

the efficiency of the shipping process.

Once proven successful, the system can

be implemented in over 16,000 existing

APMs along with new ones scheduled

for 2022 and the following years. This

effort makes InPost the largest logistics

network providing such solutions. Since

the returns are managed by the InPost

app, the whole process is seamless for

customers. Again, the app provides the

means to manage different technologies

for the best e-commerce experience.

Both business and consumers

are aware of how single-use

packaging is a major problem,

and this is no less applicable to

e-commerce. To develop in a

sustainable manner, we have

decided to face this challenge

together with InPost. By joining

forces, the circular economy

becomes a reality.”

Damian Zapłata

CEO, MODIVO

CCC Group

• We strive to make APMs stay

functional for as long as possible,

extending the life of older machines

by equipping them with new

components. As a result, steel

structures, which require the most

raw materials to build, may get a

second life. In 2021 we purchased

new machines for production to

minimise sheet metal waste.

Educating our customers is important

as they are an important element

in reaching a circular economy. To

facilitate the transition to a more

sustainable lifestyle, we run the

YouTube channel “Is Poland eco?”

where we refute many myths, answer

troubling questions, and show various

interesting facts through which we aim

to make ecological awareness more

familiar, accessible, and practical. As

environmental protection and climate

change are broad topics, we also use

our voice to raise awareness for issues

such as biodiversity loss or the negative

effects of littering, and also to promote

sustainable businesses and local

initiatives.

We also aim to educate our employees:

• We organise training for employees

to raise environmental awareness.

• We use reusable toners.

• We segregate our waste according to

five waste categories (in line with EU

regulations) and conduct trainings

to ensure that all our employees are

fully informed and to secure highest

possible level of recycling.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

People are at the heart of our business.

It is for them that we are redefining the

customer experience of e-commerce

at the last-mile. We have also received

direct positive feedback from

customers’ with a NPS

for APMs of

75 points – the highest among all major

competitors, with innovation, use of

mobile solutions and being green as

major distinguishing factors.

91% of

on-line shoppers in Poland choose

InPost APMs as the delivery method.

This means that those potential

customers may abandon the cart due

to the inability to collect the order from

a parcel locker even if the store has a

satisfactory offer.

We tap into the potential of technology

to link people and businesses and

give everyone the opportunity to enter

the future today. Sustainable. At your

fingertips. For everyone. We create

new solutions to transform the reality

around us, because we believe that,

OUR COMMITMENT

WE SET THE DIRECTION OF CHANGES

IN THE INDUSTRY BY IMPLEMENTING

AT LEAST TWO SUSTAINABLE

CONSUMER SOLUTIONS IN

E-COMMERCE A YEAR

We want to strengthen our leading

position, using the power of technology

to set new trends and solutions in

e-commerce, which is why we focus on

development and innovation that support

a sustainable lifestyle. In other words, we

intend to launch new market solutions

(such as service, application functionality,

a new hardware and software solution

or a service offering) in the following ESG

areas: circular economy, decarbonisation,

no more food waste, wellbeing, and

counteracting technical and technological

exclusion for seniors and people

with disabilities. Solutions are tested

and launched in at least one market

(commercial deployment).

InPost IS THE FIRST CHOICE OF

CUSTOMERS (INDUSTRY LEADER NPS

IN ALL MARKETS)

We want the customer satisfaction index

to confirm their satisfaction with the way

we use and manage the APMs and PUDOs

network to improve the quality of life in

their cities, how we strive for enabling

sustainable consumption and finally how

we challenge ourselves to make their

everyday routines easier. First, we will

measure the NPS for Poland and France;

other markets will follow in the future.

WE SUPPORT OUR LOCAL

COMMUNITIES BY CREATING

COMMUNITY INVOLVEMENT

PROGRAMMES REACHING

TWO MILLION BENEFICIARIES

We want to be an active participant

in the life of local communities and

tackle future challenges together. Our

commitment refers to the cumulative

number of beneficiaries of community

engagement programmes from 2021

through 2026, aligned with the social

engagement strategy. A beneficiary

is a person who directly benefits from

the project results (such a recipient of

donations, people using purchased

equipment, webinar or workshop

participant, etc.).

IN_CLIENT

We change the lifestyle

of tomorrow

with technology, we can improve our

efficiency and thus make our customers’

lives easier and more comfortable.

With almost 16,500 APMs in Poland,

3,609 internationally and 17,000 PUDOs

across markets with the Mondial

Relay brand, we make people’s lives

easier, while changing their cities into

more pleasant places to live. We are

taking another step and expanding

to towns and rural areas to give their

inhabitants access to new products and

services, including those that are more

sustainable but have been limited to

major cities. This network also equips

small entrepreneurs with the means

to reach new clients and gives them

a cost-effective tool for expansion. In

Poland, APMs deployed in rural areas

add up to almost 30% of all APMs.

Net Promoter Score is a method of using a single survey question to gauge customer satisfaction with a

product or service.

TNS Kantar study, October 2021

InPost image research, Kantar, X 2021

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

PM10:75%

Fresh

7 6

1. Automated Central Sorting Hub

3. Remote opening of lockers

and sending without labels via

the InPost Mobile app

4. Chatbot and IVR, optimizing the

handling of inquiries (claims robots),

Robotization of processes

and Data Science

6. Multilocker service

7. Eco-friendly electric vehicles

8. Dynamic Courier Routing

9. Refrigerated lockers

11. Indoor Parcel Locker

12. Parcel Locker with an air quality

sensor

13. EV chargers near to Parcel Lockers

14. Screenless Parcel Locker

15. Solar-powered Parcel Locker

16. E-grocery

17. Same Day Delivery

We share our vision with

others. We collaborate

with visionary people;

those who are full of

passion and commitment

and looking for new

challenges.

Whether it means facilitating placing

orders, adding new functionalities

to the APMs to redefine their usage

and impact on their surroundings,

or further simplifying collection, we

are overcoming barriers, growing

local communities to build new

cities together. We are observing the

development of competition in the

Polish market, and at the same time

we face the challenge of implementing

our business model in new markets.

These market conditions are only an

additional motivation for us to continue

our philosophy of operation, continuing

the search for innovative services and

improving customer experience. We

want to surprise the market and set

trends that will be implemented in

Europe after being piloted in Poland.

Just in 2021 we launched four

sustainable services and solutions,

and that’s just the beginning.

Technology, our APM network and IT architecture are the core drivers of the InPost ecosystem

Automated Central Sorting Hub

Fulfilment

Remote opening of lockers and

sending without labels via the

InPost Mobile app

Chatbot and Interactive Voice

Response (‘IVR’), optimising the

handling of inquiries (claims robots),

robotisation of processes

Artificial Intelligence

and Data Science

Multilocker Service

Eco-friendly electric vehicles

Dynamic courier routing

Refrigerated lockers

InPost 24-hour Office

Indoor Parcel Locker

Parcel Locker with an air quality

sensor

EV chargers near to APMs

Screenless Parcel Locker

Solar-powered Parcel Locker

E-grocery

Same Day Delivery

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Direct impact on SDGs specific targets

SDG TARGET

GRI [103-2] InPost GROUP CONTRIBUTING

ACTIONS - EXAMPLES

By 2030, reduce the adverse per capita environmental impact of cities,

including by paying special attention to air quality and municipal and

other waste management (11.6)

• InPost Green City programme

By 2030, substantially reduce the number of deaths and illnesses from

hazardous chemicals and air, water and soil pollution and contamination

(3.9)

• APMs with air quality sensors

Develop quality, reliable, sustainable, and resilient infrastructure, including

regional and transborder infrastructure, to support economic development

and human wellbeing, with a focus on affordable and equitable access for

all (9.1)

• APMs deployment in rural areas (almost

29% of total APMs in Poland)

By 2030, upgrade infrastructure and retrofit industries to make them

sustainable, with increased resource-use efficiency and greater adoption

of clean and environmentally sound technologies and industrial processes,

with all countries taking action in accordance with their respective

capabilities (9.4)

• EV fleet development

• EV charging stations

Support positive economic, social, and environmental links between

urban, per-urban and rural areas by strengthening national and regional

development planning (11.a)

• APMs deployment in rural areas

Our contribution to SDGs

With growing APMs and PUDO networks,

we are a constant presence in cities and

becoming a part of the rural landscape.

In having this impact, we want to invest

in innovation and technologies that are

beneficial for inhabitants and result in

them minimising our impact on the

climate and improving the quality of

air. For this purpose, we have identified

four SDGs relevant for reaching this

ambition: SDG 3 (Good Health and Well-

being), SDG 9 (Industry, Innovation, and

Infrastructure), SDG 11 (Sustainable

Cities and Communities) and SDG 13

(Climate Change).

As EU27 face very different challenges

related to infrastructure or urban

development and its impact on health,

than developing countries, the necessary

progress was hindered by the COVID-19

pandemic, and France, Poland and the

UK have fallen behind schedule in most

of them. The most challenging one is

SDG 11 with only mild progress in all three

countries. Even significant progress in

Poland’s number of “green” public buses

from 3.6% in 2015 up to 9.7% in 2019

isn’t sufficient to impact the air quality

in cities – the Pm3.5 dust level declined

only by 2 µg/m3 from 32 in 2015 to 21 in

2019). More positive results are observed

in SDG 9, where France and UK have

reached their targets, with only Poland

still struggling.

The target for SDG 13 is covered under pillar 1 –

We DRIVE low-carbon e-commerce.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

How we impact society

and quality of life

Research shows that thanks to

e-commerce, customers are happier

as they can save time

, get products

better suited for their needs

or even

get access to products that were

unavailable to them as a result of

geographical exclusion

. In Poland,

InPost has almost 16,500 APMs

, and

we delivered over 424 million parcels

annually. We cover almost 30% of all

e-commerce in Poland, which gives

almost 3bn PLN of new value

–

improves customer satisfaction.

However, the impact we have extends

beyond just economic value. We are a

constant part of our customers’ daily

routines. Being part of their reality

means being able to influence them,

provide them new opportunities,

and shape and support sustainable

attitudes in a positive way. Our ambition

is for the innovation and efficiency of

InPost to shape customers’ lifestyles

and their environment in a sustainable

direction, full of positive energy. They

even expect that from us – 40% of our

customers says we should be shaping

good customer habits, 25% expect we

will take care of the air quality in cities

and even become carbon neutral

And with the strong mandate they

give us (85% of them sees InPost as an

innovative company developing new

technologies)

, we will strive to meet

those expectations.

What is our social footprint?

[GRI 201-1]: Some 86% of on-line

shoppers declare that in order to get

them to shop more often, the delivery

time should take less than 12 hours. 96%

of Parcel Locker shipments at InPost

are delivered within one day of posting,

which meets e-commerce customers’

preferences

. From the financial point

of view, in 2021 InPost generated more

than 4.5bn PLN, and it distributed

almost half of that value. The rest was

used for further investments to rapidly

grow InPost‘s market share, so more

people could have access to quick

and reliable deliveries. In making the

e-commerce experience as easy and

efficient as possible, we have reached

for the most convenient and resourceful

tool everyone has: the mobile phone.

Our InPost app is the very heart of the

customer experience. It is a solution for

managing all the services we provide

along the way to the final client. We use

one app to combine different levels of

interactions with technology to make

last-mile experience effortless.

Currently, with almost eight million

users in Poland, the app covers 64% of

parcels sent and constantly evolves and

expands as a response to consumers’

changing needs. With every new service

launched, we gain new users. When

they expect safety and want to limit

their contact even with the APM itself,

we provide an option for opening the

locker remotely (with approximately

1.7m users in March 2021 to almost

3m in the next month after launching

the service). When they want to send

Chen & Dubinsky, 2003; Dolfen et al . 2019, Huang & Bronnenberg, 2020

Broda & Weinstein, 2010, Quan & Williams (2018)

Luo et al., 2019; Fan et al., 2018, Huang & Bronnenberg, 2019

As on 31.12.2021.

InPost impact analysis, 4 bln pln are the results given the conservative assumption of only 50% of parcels being delivered by InPost, Deloitte, 2021

InPost customer survey, February 2022

Kantar study, October 2021

a parcel via our APM, they can use

the app (with almost half a million

new users within one month). When

they have trouble reaching the higher

lockers, we give them the possibility

to order a delivery to lockers that are

placed at a lower height. It has become

an ecosystem that enables us and

customers to manage not both parcel

management (sending and delivery)

and communication. All new features

are the result of a dialogue facilitated

by technology and innovation. Finally,

using the app means higher security –

a lower risk of phishing and quicker

and safer transactions. All customer-

oriented functionalities are highly rated

by users, and the InPost app scored

5.0 (AppStore) and 4.9 (Google Play)

at the end of 2021.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Customer

care

Returns

Parcel tracking &

notifications

• Seamless UX

• Remote locker opening

• Convenience

• Chatbot

• Track parcel status,

courier, APM localisation

• Mobile app & standard

tracking via e-mail and SMS

• Fast returns

• Transparent complaint

handling process

Parcel

pick-up

• APM selection by location

• Competitive price

• Top basket positioning

Browsing

and ordering

Our seamless

customer journey

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

The parcel locker gives me

more freedom. Before, I would

have to track all my individual

orders across various sites

and often plan my day to wait

for a courier at home. Now I

don’t have to worry about this

at all. I click, I buy, and I know

that my locker is a stone’s

throw away. The convenience

is unmatched. It’s also useful

that I can shop while on

holiday, without worrying

about the addresses. I’ve yet

to travel somewhere without

a parcel locker nearby. As

a bonus, the ability to open

the lockers through the app

makes my children think I’m

a sort of sorcerer!”

Not many people outside the

e-commerce sector know just

how important delivery is to

the customers’ opinions and

impressions of a business.

The best product, if delivered

with delay, can cause the

reputation of the business to

suffer. Parcel lockers, and the

service of InPost in general,

have really changed our

working reality 180º, at least

in deliveries. Firstly, we can

dispatch as soon as we’re

ready – we have a locker

nearby. Secondly, clients

are immediately notified

when we’ve prepared and

dispatched their package,

and can immediately start

tracking. Finally, we no

longer have to field calls with

requests to change delivery

dates. Now the package waits

for the client, not the client for

the package. We now promote

delivery to parcel lockers on

our site, because we really

believe this is the best solution

for both us and our clients.”

Paweł

owner of an internet store selling

cameras and lenses in Poznan

What actions do we take?

The InPost app is the tool that makes

the experience effortless, but for many

clients, the APM is the gamechanger

in e-commerce. When choosing an

APM, from the moment of purchase

to the moment of collecting the parcel,

the customer makes more sustainable

choices. They choose the most ecological

form of delivery, and since parcel lockers

are easily accessible in the vicinity of

their residence, they often leave the

car and pick-up the package on foot.

Finally, they benefit from the option of

using a multi-locker, i.e. ordering items

from different stores to the same APM

and picking them up during one visit.

Each of these steps brings us closer to

increasing sustainable purchasing. As

InPost, we want to provide our clients

with more such opportunities and

remove barriers that could hinder the use

of an APM. This has a direct impact both

on the convenience of the consumer

themselves and, considering the scale

effect, on the quality of life in cities.

If we follow the pathway from purchase

to collection, one can see the breadth

and depth of solutions with which we

can support the customer in making

sustainable decisions at every stage of

this path. By working with platforms

such as Vinted (in every market where

InPost operates) Ree-Fashion (Poland)

Thrift+ (UK) and Yellow Octopus

Agnieszka, 34

resident of Bytom

(see best practice), we promote

giving clothes a second life, which

significantly contributes to saving raw

materials (up to 11,000 litres of water are

needed to produce a new pair of jeans).

We have also started co-operation

with OLX – the largest second-hand

exchange platform in Poland.

It is equally important for us to extend

the accessibility of APMs. Given

the projected further growth in

e-commerce, it is important that as

many customers as possible benefit

from having access to this most

sustainable method of parcel delivery.

This means not only eliminating

geographic exclusion or introducing

systemic solutions thanks to strategic

partnerships with development

companies such as Echo Investment

(the cooperation covered investments

in Warsaw, Krakow and Poznan), but

also introducing new solutions for

people with disabilities. That is why we

have launched the Easy Access Zone

service for people with limited mobility,

thanks to which the customer can order

a package pickup to one of the lower

lockers. From the moment the service

was launched in October until the end of

2021, it was used 487,217 times. Another

such solution will be a voice bot which

will enable contact with client-service to

visually impaired customers (pilot phase

started in Q1 2022).

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

We are introducing new and innovative

services to support the dynamically

changing urban lifestyle. This is the

purpose of InPost Fresh – a new app

that allows you to order groceries from

Makro (a food retailer) with a delivery

directly to your home or any given

address (in Warsaw, Poland). Customers

can choose both the location of the

delivery and the date. InPost Fresh

received direct positive feedback

from customers’ (NPS at 72) points

(IX-XII 2021). Along with this, we are

expanding a network of refrigerator

APMs (Refrigerated Locker Machines

”RLM”, which are available in major

Polish cities) which hold deliveries from

partnering food retailers (like Auchan

Direct) or from online caterers (like Body

Chef). These types of APMs have lockers

with different levels of temperature,

enabling orders of a wide variety of

products, from fresh vegetables and

frozen meals to meat and fish. Both

options are a convenient solution for all

of those who do not have time to shop

during standard store opening hours,

or who do not have time to travel to

locations that are too distant. What’s

important, the RLMs use optimised

quantities of the refrigerant agents

R-449A and R-404A, so we are not

required to monitor and report them

to the Central Registry of Operators

(CRO) in accordance with the official

regulations.

[GRI 203-1]: An APM can be more than a

collection point, as it can also become a

recycling point where customers bring

electronic devices that they no longer

use and can actively contribute to the

improvement of air quality in cities by

equipping it with air quality sensors,

and surrounding it with anti-smog

pavement and plants that absorb

pollutants (implementation in 2022). 80

sensors were installed in 2021,, with a

plan to install over 1000 in total. Our aim

is to receive positive feedback from the

community, hopefully recognising the

free service that increases awareness of

air pollution and monitors it on the

local level.

The total investment cost amounted

to 1.1 million PLN, and the expected

lifetime of the sensors is ten years.

InPost’s main activity related to the

environment is also focused on

the InPost Green City programme.

One of its elements is the gradual

increase in the use of electric cars.

This means not only a significant

reduction in CO

emissions, but also

an investment in noise reduction,

and thus a significant improvement

in the quality of life of residents.

Another example of a fruitful

cooperation with local authorities is

InPost UK’s partnership with Transport

for London. Thanks to 60 APMs rolled

out in Rail and Underground Stations

and nearly another 1,000 across the

city, Londoners can conveniently collect

and return parcels as part of their

daily routine. Furthermore, a growing

lockers network will significantly lower

emissions, reducing local noise and

air pollution and congestion on city

roads. This cooperation helps Londoners

directly contribute towards London’s

target to become a zero-carbon

city by 2030. With a direct effect on

lowering levels of exhaust and non-

exhaust pollutants, the APM system

has potential to help to reduce the

projected £3.7bn cost associated with

the health impact from exposure to

poor quality air

Similarly, APMs are

being installed at libraries, car parks and

community centres across Manchester

to help bring down harmful emissions

in the residential area of Salford.

The impact of similar decisions is

visible both on the macro and micro

scales, especially in the improvement

of the quality of the inhabitants of local

communities. In 2021, as part of our

pro-social activities, we engaged in

three areas of activity: health, ecology,

and support of women’s professional

development. There were also activities

as part of the 29th Final of the Great

Orchestra of Christmas Charity. InPost

auctioned the golden heart no. 2 (a

unique charity donation for Poland’s

biggest charity organisation), for

the amount of 402,000 PLN for the

development of health care units in

Poland.

Environmental and Sustainability Report, Barton Willmore, on behalf of InPost UK, December 2019

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Thanks to the support of the Wosh

Wosh campaign in Poland, we have

facilitated the collection of nearly 4,000

pairs of shoes for the homeless. Similar

actions are taken in France, where we

support vulnerable groups by opening

our PUDOs to local partners like Petits

Freres Des Pauvres, Imagine For Margo

or THRICOTON which use them as

collection points for donations or other

activities. This way we supported raising

funds for genetic disease and paediatric

cancer research, as well as for support

for isolated people. Also, with local

communities in mind, InPost joined the

Clean Poland #fromTATRY to BAŁTYK

campaign. After the holiday season,

these places struggle with litter, which

is a significant challenge for residents

who are left with a large amount of

waste discarded by tourists. This year,

InPost equipped volunteers with starter

packages. Nearly 4,000 volunteers took

part in the event, and approximately

2.5 tons of rubbish were collected and

recycled. The initiative was awarded

with the Złoty Spinacz in the “social

even” category.

[GRI 203-1]: Our charity work benefited

about 20,000 people in 2021 in Poland.

In addition, the total cost of investment

in infrastructure for social purposes,

implemented in the form of pro-bono

investments, amounted to three million

PLN and included Air Quality Sensors,

InPost Green City

anti-pollution paving

stones and EV charging points.

Both business and consumers

are aware of how single-use

packaging is a major problem,

and this is no less applicable to

e-commerce. To develop in a

sustainable manner, we have

decided to face this challenge

together with InPost. ”

Krzysztof Kieszkowski

Regain the Environment Foundation

BEST PRACTICE

Supporting reuse

Unused electronic devices are often

difficult to recycle; searching for special

collection points can be troublesome.

Therefore, a significant part of this

type of equipment remains in homes

or is thrown away, contributing to the

waste of valuable resources. That is why

InPost, in cooperation with Fundacja

Odzyskaj Środowisko (Regain the

Environment Foundation) launched

the Elektro Returns service, which

allows consumers to give a second life

to unused phones, laptops or small

household appliances. InPost provides

users with a form and a free shipping

code, allowing them to simply print,

pack, and post the item free of charge.

The equipment will go to a professional

electronics refurbishment company,

where it will be checked for efficiency

and the possibility of reuse in part or

in full. If the faults or defects allow the

original function of the device to be

maintained and the costs of its service

do not exceed the production costs,

the product can be reintroduced to

the market. If the equipment cannot

be reused, it will be transferred to

professional electrical and electronic

equipment waste processing plants to

recover the materials. The service was

launched mid-November, and by the

end of 2021 customers returned almost

1,600 parcels with electronic devices.

We can no longer afford to throw

away equipment and thus waste the

raw materials from which they were

built. As inhabitants of the only planet

we have, we cannot permit that. We

need solutions that allow resources to

be reused or processed and used in a

different form, and we must build them

on a mass scale. That is why there is so

much potential in combining proven

solutions that consumers are used

to, such as using an APM, with a new

and much needed dimension, such

as using an APM as a place to return

old electrical devices. By removing

barriers to reuse and recycling, we can

significantly increase APMs efficiency.

3m PLN

Pro-bono investments

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

BEST PRACTICE

Cybersecurity

We do not compromise when it comes

to cybersecurity. We provide solutions

for the e-commerce market, and we

are aware of the huge responsibility it

entails. Throughout the organisation,

we use cutting-edge technology

and IT security practices. We only use

proven and reliable solutions. We treat

cybersecurity as a continuous process–-

along with IT development, the security

and processes we implement are

also evolving and developing. We also

regularly train the Group’s employees

in cybersecurity. We monitor threats to

our clients and keep them informed on

issues such as phishing campaigns. We

use our own communication channels

and cooperate with high-range media,

sensitising recipients to fraud attempts

by criminals.

BEST PRACTICE

Fulfilment solutions

The dynamic development of

e-commerce means that new

companies can grow so fast that they

will need comprehensive support

in delivering their products almost

overnight. The fulfilment service is

helpful for such companies, and

thanks to this service they do not

have to worry about acquiring and

financing warehouse space or hiring

employees to pack the shipment.

They gain developmental flexibility

while optimising costs and, most

importantly, they acquire a connection

to an effective and sustainable model

of product delivery. By using the InPost

Fulfilment service, the company has the

option to purchase recycled Blue Angel-

certified packaging.

BEST PRACTICE

InPost Green City going

greener and scaling up

Since parcel lockers and the trucks that

serve them have become a natural

element of the urban landscape and

a part of the life of residents and local

communities, we want their presence

to have the most positive impact on

the quality of life in cities. We were

guided by this idea when creating

the InPost Green City Programme,

which relies on close cooperation

with municipalities in order to jointly

develop an optimal model of InPost’s

presence in a given city, favourable to

residents and in line with the smart

city idea. This means not only offering

innovative services such as electric

chargers at APMs, but also actively

supporting the fight against urban

challenges, such as air pollution,

congestion, and the noise it causes.

This is done by equipping the network

of APM’s with a range of technology

including sensor monitoring, air

quality, anti-smog pavements and

air-purifying plants. In the partner

cities, we additionally intend to

successively replace our delivery fleet

with electric cars, which not only do

not cause additional CO

or particulate

emissions, but are also much quieter,

and thus more friendly to residents.

The programme will ultimately cover

40 Polish cities. So far, 21 cities have

joined the programme: Kraków, Łódź,

Częstochowa, Kielce, Wałbrzych,

Zielona Góra, Sopot, Rybnik, Białystok,

Bobrowniki, Chełm, Rzeszów,

Wrocław, Gorzów Wielkopolski, Bytom,

Tarnobrzeg, Nowy Sącz, Konin and

Pabianice, Starachowice, and Suwałki.

Cities like Wroclaw develop

dynamically. We must combine

the needs of transport with

environmental protection.

Therefore, we focus on

collective communication and

sustainable transport. Certainly,

a more ecological solution is

also the “collective transport of

package” rather than individual

delivery to each address. If the

service is performed by electric

cars, it significantly reduces

the harm to the environment.

This is why we believe that the

solutions proposed by InPost

make sense.”

Jakub Mazur

Vice President, City of Wroclaw

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

BEST PRACTICE

Go Yellow to be green

InPost UK launched a partnership

with Yellow Octopus Group to support

circularity in fashion. They encourage

consumers to recycle their clothing

or donate it to charity via the reGAIN

app. The mechanism is very simple:

consumers register their donations via

Yellow Octopus’s reGAIN app and drop

them off at any InPost locker in the

UK free of charge. The incentive is that

they earn discount coupons for a range

of retailers for each donation made.

As circularity in fashion is crucial, with

the reGAIN app, unwanted clothes are

then distributed to charities, as well

as across a network of textile recycling

innovators, research initiatives, students’

projects and fashion designers to be

renewed, upcycled or recycled into new

sustainable products.

Our own research suggests

that consumers – especially

18-34 year-olds – are

increasingly looking for ways

to live more sustainably. What

we need to do is try to make

it as convenient as possible

to adopt green behaviour.”

Jason Tavaria

CEO of InPost UK

Awards

Forbes Diamonds 2021

Sustainable Economy

Diamond

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

ESG pulse check, conducted in

Jan-Feb 2022, 1009 respondents.

Building a sustainable future means

assuming responsibility for the whole

value chain. This applies to us and our

business partners. We are an ecosystem

that is at its best when we grow

together by supporting one another.

We want to look for innovation, ideas,

and exchange knowledge across

functions and countries. Diversity drives

change and technology enables us all

to work more effectively together.

Every day, we are ready to take on new

challenges and keep pushing our limits.

Our unique business model enables us

to be constantly innovative and push

boundaries even further. This attracts

people with unique competencies

which we cherish as a significant

business advantage that helps secure

our long-term success. We grow as

people and as businesses. And our

efforts are appreciated – 84% of our

investors see InPost as a company that

stands out from the competition

Together, we will amaze the world.

OUR COMMITMENT

THE LEVEL OF COMMITMENT OF OUR

EMPLOYEES WILL NOT BE LOWER

THAN 50% (ACCORDING TO THE

KINCENTRIC METHODOLOGY)

Employee engagement is the key to

success of any company; therefore, we

are ready to test it on a regular basis.

We will introduce a single assessment

methodology for all markets to ensure

consistency and efficiency across the

entire InPost Group.

WE WILL EMPLOY 1,000 EMPLOYEES

AND COURIERS AS A RESULT OF THE

IMPLEMENTATION OF PROGRAMMES

RELATED TO EQUALISING

OPPORTUNITIES ON THE LABOUR

MARKET

We know that early investment in

personnel development affords an

opportunity to build a long-term

relationship and is a necessary response

to the challenges of the present-day

labour market. This commitment refers

to the cumulative number of staff (in

the years 2021-2026) in all markets

who benefit from equal opportunities

programmes run by InPost and who have

worked (or will have worked) at InPost for

at least half a year. This objective applies

to the personnel of the InPost Group and

couriers, regardless of the legal form of

employment.

WE CREATE A WORKPLACE THAT

THRIVES ON DIVERSITY. STRONG

SUPPORT FOR GENDER EQUALITY IS

A FOUNDATION FOR OUR GROWTH

(30% OF THE MANAGEMENT BOARD

AND SENIOR MANAGEMENT (N-1) OF

THE InPost GROUP ARE WOMEN BY

2026)

We want to galvanise our employees into

learning from diversity and knowledge

exchange; therefore, we will create

programmes and encourage projects

carried out on at least two markets

in parallel, so that any international

exchange that occurs can actively

contribute to the integration of the InPost

Group. All our employees will be informed

via internal communication tools about

international, open opportunities in the

Group. The recruitment process for each

position will be held according to the

company standards and procedures.

IN_PEOPLE

We motivate our employees

and business partners

If we want to change our world, we need to provide people

with knowledge, competencies, faith in their skills, and

energy to share their experience with others.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Direct impact on SDGs specific targets

SDG TARGET

GRI [103-2] InPost GROUP CONTRIBUTING

ACTIONS – EXAMPLES

Ensure women’s full and effective participation and equal opportunities

for leadership at all levels of decision-making in political, economic, and

public life (5.5)

• 35% of women in managerial positions

Enhance the use of enabling technology, in particular information and

communications technology, to promote the empowerment of women

(5.b)

• ‘Top women in e-business’ educational

programme

By 2030, empower and promote the social, economic, and political

inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin,

religion or economic or other status (10.2)

• Diversity Policy implementation

Adopt policies, especially fiscal, wage and social protection

policies, and progressively achieve greater equality (10.4)

• Remuneration Policy in place

By 2030, reduce by one third premature mortality from non-

communicable diseases through prevention and treatment and promote

mental health and wellbeing (3.4)

• WellTime programme

• ‘Therapy is not a shame’ campaign

Achieve higher levels of economic productivity through diversification,

technological upgrading and innovation, including through a focus on

high-value added and labour-intensive sectors (8.2)

• Innovation process, incl. Innovation Lab

• Ongoing robotisation

By 2030, achieve full and productive employment and decent work for all

women and men, including for young people and persons with disabilities,

and equal pay for work of equal value (8.5)

• Mondial Relay internship programme

Our Contribution to SDGs

Growth for InPost Group means growth

for people. That is why we focus strongly

on the four SDGs that support their

development and foster an inclusive

and a fair working environment and

external cooperation: SDG 4 (Quality

Education), SDG 5 (Gender Equality),

SDG 8 (Decent Work and Economic

Growth) and SDG 10 (Reduced

Inequalities).

The COVID-19 pandemic had a

significant impact on working

conditions, stopped progress in

education, and the fight against

inequality, especially gender-based. For

the EU the impact was not as strong

as for some developing countries, but

the achievement of particular SDGs

has slowed down and Poland, France

and UK still face challenges. For SDG

4, SDG 5 and SDG 8 all three countries

are making only mild progress. In SDG

10 we can observe quite a significant

distance between the UK with

major issues still to address and even

regressing, while Poland has already

achieved this particular goal due to

staying on track with its transformation.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

200

400

600

800

1,000

1,200

1,400

1,600

Permanent Men

Headcount

Permanent Women

InPost S.A. and polish subsidiaries Foreign countries (FR, UK)

2020 2021 2020 2021

+18%

+26%

1,102

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Men PL Men Foreign Women Foreign

Women PL

2020 2021

+49%

+46%

-9%

-40%

Headcount

GRI [102-8] Figure 6 Permanent employment headcount

GRI [102-8] Figure 7 Sum of employment headcount

The impact we have on

employees and business

partners

With a decreasing working-age

population, securing a sufficient

number of employees is becoming a

greater challenge every year. In 2021

alone, the number of companies

reporting labour shortages from the

transportation and storage industry

(including courier services) nearly

doubled (approx. 20 in 2020 – to

almost 40 in 2021 in Poland

). This

is a challenge for traditional courier

services, but as the InPost business

model requires fewer staff to deliver our

services, the continuing deployment

of APMs makes us less sensitive to that

risk. This is especially important when

considering that for all e-commerce,

the base for growth is acquiring new

customers by building reach – which

means targeting rural areas that are

even more effected by depopulation.

Although labour shortages in operations

and production present us with less

risk than for our competitors, we still

want to invest in building long-term

relationships with our employees

and developing loyalty-building

programmes.

Our geographical expansion means

fighting geographical exclusion and

providing access to products and

services for clients, as well as creating

a chance to grow for local businesses.

Through APMs they gain an additional

tool opening them up to new customers

and tapping into local potential.

What is our footprint concerning

human and relationship capital

within our value chain?

GRI [102-8] We employ over 7,976

people in all our markets and an

additional 4,710 contractors (MR+UK+PL).

In Poland alone we work with about

7,600 couriers and serve more than

38,000 merchants. The flexibility

provided by on B2B relationships or

partnerships translates into a high

ability to respond to a changing

business environment, especially in

peak seasons (i.e Christmas) or during

unprecedented situations like COVID-19.

We operate in a large and significant

network and through collaboration we

can transform the scale of our impact

and the multitude of relationships with

our employees and business partners.

InPost employees form a team that

has become the driving force behind

the Group’s enormous development

in recent years. Specialists in the field

of technology, development, logistics,

and marketing have built an innovative,

effective company respected by

customers and investors. Now the same

team capitalises on the experience

gained in Poland on a broader scale.

At the same time, we see a great

opportunity to build on the capital of

over 20 years of business experience

gained at Mondial Relay.

Statistics, Poland

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

GRI [401-1] Figure 8 Total number of employee turnover

GRI [401-1] Figure 9 Total number of new employee hires

500

1,000

1,500

2,000

2,500

3,000

3,500

The total number of employee

turnover during the reported period by

gender. The total number of employees.

Men

The total number of employee

turnover during the reported period by

gender. The total number of employees.

Women

InPost S.A. and polish subsidiaries Foreign countries (FR, UK)

2020 2021 2020 2021

Number of contracts

+34%

+39%

1,102

200

400

600

800

1,000

1,200

1,400

The total number of new employee

hires during the reported period by

gender. The total number of employees.

Men

The total number of new employee

hires during the reported period by

gender. The total number of employees.

Women

InPost S.A. and polish subsidiaries Foreign countries (FR, UK)

2020 2021 2020 2021

Number of contracts

+27%

1,102

+11%

Table 2 Rate of turnover [GRI 401-1]

As a Group, we identify challenges in the

field of personnel management, which

have undoubtedly been strengthened

in the past two years by the COVID-19

pandemic and the related rapid growth.

In Poland the increased rotation

(at the level of 25.94%) is slightly above

the market benchmark for Poland of

22%. The Polish employment market

had become more dynamic in 2021

in comparison to previous years which

isreflected in the higher turnover ratio.

The reason for Polish turnover ratio is

mainly early attrition in customer-facing

functions such as the call centre and

rotation in opertions which are caused

by 3-shift system. The Polish business

grew rapidly in 2021 which resulted

in some employees moving to work in

a less dynamic environment. We are

currently introducing multiple initiatives

such as regular pulse checks for new

joiners, advanced analytics of reasons

for employee rotation, redesign of the

onboarding process and dedicated plans

for various parts of the organisation.

The French employment market was

quite dynamic in 2021 in comparison

to the previous year. The main cause

for the turnover ratio is the ease of

changing jobs for blue-collar workers

from a shift system to a daily nine- to-

five job. The turnover ratio for Mondial

Relay aligns with expectations post-

merger. The French management

recognises the trend and is planning to

implement some initiatives to improve

the employee experience such as: new

office space, internal communication

improvement tools and the profit

participation plan, which will also be a

crucial retention factor as the company

will become more and more profitable.

A similar situation is observed in the

UK. This is a market where APMs are

only just being deployed and where

employees are not yet familiar with

the specifics of working in a business

that is new to them. This often results

in divergent expectations on the

part of both the employer and the

employee, and consequently translates

into turnover rates. To ensure a more

consistent understanding of the scope

of responsibilities and requirements for

a potential employee, it is planned to

InPost SA and

PL subsidiaries InPost UK Mondial Relay

Unit 2021 2020 2021 2020 2021 2020

Rate of employee

turnover

% 25.9 21.5 40.9 20.8 17.6 26.9

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

implement more specific recruitment

process, additional competence

development tools and employee

appraisals.

[GRI 102-41]: In Mondial Relay 100% of

our employees is covered by collective

bargaining agreements, while in InPost

UK a collective bargaining agreement

was not implemented.

Mondial Relay created more new jobs

in 2021 than in 2020. Our goal is to

attract, retain, and develop employees

with unique competencies and share

the spirit of innovation and InPost’s

high performance culture with new

employees. One of the ways we do so

is through training courses. In 2021,

the average number of training hours

among the Group’s employees was 13.5.

Over 3,000 of our employees are active

in our employee evaluation and career

development system. Another distinct

part of our culture is in our diversity,

which is confirmed by our breakdown

of workforce where 41% female, 59%

men (data for Mondial Relay only for

permanent employees; no gender data).

The diveristy of nationalities and cultures

makes it possible to build modern

services tailored to the diverse needs of

consumers all over Europe.

[GRI 202-1]: It is also important to us that

women and men are paid equally for the

same work and in accordance with local

partners could grow along with us.

Development and benefits

We are committed to equal treatment

for all. Only by guaranteeing equal

treatment and respect for diversity

can we create working conditions in

which creativity and innovation express

themselves without restrictions. The

principles of non-discrimination are

outlined in the anti-harassment and

anti-discrimination policy adopted in

2019 and updated in 2021.

GRI [103-3]: In 2020 we introduced a

Diversity Policy which clearly outlines

the principles of non-discrimination.

These are enshrined in our recruitment

processes and we have a system for

monitoring and reporting any abuses.

regulations. In 2021 in Polish subsidiaries

the ratio of the entry level wage to the

minimum wage in Poland was 1.1 both

for women and men. In Mondial Relay

the results were at a similar level, 1.0.

However, the situation was significantly

different at InPost UK. In 2021 the ratio

of the entry level wage to the minimum

wage in United Kingdom for women

was 1.7 and for men 1.4. The situation

results from historical decisions on

wages, employment and various types

of departure, which had an impact on

the value of remuneration of people

performing the lowest paid work.

What actions do we take?

We plan to draw up development

and cooperation programmes for our

employees and business partners,

including couriers. The aim is to

strengthen ties within the InPost Group

and respond to the challenges of the

labour market. Our ambition is to

strengthen employee and business

partner engagement, because their skills

and commitment directly translate into

the firm position of the InPost Group.

As 2021 was a year of a transition, major

challenges in people management are

still ahead of us. However, even with this

transformation in mind, we have made

efforts to ensure that our employees

were provided with a safe and inspiring

working environment, and our business

GRI [405-1]: Taking into account the

dynamic employment growth in 2021

and the specifics of the industry, it is

a positive result to maintain a similar

employment ratio for women and

men. It is visible on the vast majority

of levels, including middle and senior

management. Acknowledging the

importance of equal treatment and an

inclusive organisational culture for the

company’s development, we attach great

importance to supporting women in the

workplace, e.g. by providing support after

returning from maternity leave.

[GRI 405-2]: In 2021 the ratio of the

basic salary of women to men for senior

management was 102.86%.

GRI [405-2] Figure 10 The ratio of the basic salary of women to men for each

employee category

GRI [405-2] Figure 11 The ratio of remuneration of women to men for each

employee category

Towards a

sustainable

future continued

50%

100%

Senior management Other employeesMiddle management

2020 2021

90.02%

102.86%

77.63%

76.42%

82.67%

83.74%

1,102

20%

40%

60%

80%

100%

Senior management Other employeesMiddle management

2020 2021

75.73%

90.29%

69.16%

65.33%

76.31%

76.45%

1,102

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

This is the highest result among all

employment categories and the highest

improvement over 2020 (by 43.2pp).

When it comes to middle management,

the ratio was 76.4%, while for other

employees it was 83.7%.

For senior management, the ratio of

remuneration of women to men was

90.3%. As in the case of basic salary,

middle management has the lowest

ratio of remuneration of women to

men, which is 65.3%. The ratio among

other employees was 76.5%. Differences

in remuneration between men and

women are a result of the employment

structure in the company and the

distribution of the level of experience

required between the individual

departments. In order to provide equal

salary, we implemented a Remuneration

Policy that adopts the principle of

equal pay for equal work performed.

In addition, remuneration levels are

regularly reviewed in relation to market

benchmarks. We strive to improve the

remuneration ratio at all levels.

GRI [401-2]: For employees we offer a

lot of benefits. One thing common to all

markets is the health-care option.When it

comes to unique benefits, Mondial Relay

offers profit sharing, InPost UK provides

staff discounts with retailers, and InPost

SA as well as Polish subsidiaries offer days

off for internship (length depending on

the length of service at the Group).

GRI [404-1]: In 2021, 3,474 employees

participated in training about InPost’s

compliance policies. We place particular

emphasis on supporting women’s

entrepreneurship. Therefore, we not

only make it easier for our employees

to reconcile their parental roles with

professional development, but we also

support women in starting their own

businesses.

All activities aimed at employees

is focused on two main themes:

health (including mental health), and

development. The main step is to provide

development opportunities by defining

career paths and succession plans.

In 2021 these were defined for

managers, with a complementary

monitoring programme. We will

subsequently develop plans for

individual functions across the

organisation. Following the acquisition

of Mondial Relay, we will implement

their internship programme across the

InPost Group. As a result, as many as

12% of new employees in France are

graduates of the programme.

InPost’s employees are given many

opportunities to grow, including

taking part in different training and

development programmes.

GRI [404-1]: In 2021 the number of

average training hours per employee

was equal to 13.5.

GRI [404-2]: We are committed to the

development of our employees. For this

purpose, we organise various training

programmes in order to improve their

competence. In 2021 in InPost SA and

polish subsidiaries there were six such

programmes: the “People Out of the

box” successor and talent detection

programme - changing approach

in talent management policy and

scope of development programmes;

Foreign language classes; Upskilling

programmes for professional and

managerial competencies; Onboarding

programme; Wellbeing programme

and 360 assessment for key managers.

In Mondial Relay most of training

actions concerned security and risk

management. In InPost UK we have

not run such programmes in 2021, but

we are now creating various training

programmes for our employees for 2022.

In InPost Group there are no transitional

assistance programme who are retiring

or who have been terminated.

GRI [404-3]: All Polish employees

below senior management received

regular career development reviews in

2021. Although Mondial Relay is at the

beginning of the integration process, the

rate is already higher than 50%, while in

the UK the process will begin in 2022.

Wellbeing continues to be front of mind

as the pandemic continues in our daily

lives. We conducted the second edition of

our WellTime programme on the topic of

holistic health. Invited experts responded

to key issues in the areas of health

maintenance, mental health care, and a

healthy lifestyle – including diet, exercise

and building positive relationships with

the environment.

The programme lasted for 12 weeks,

and webinars were accompanied by

newsletters going into greater detail

about each topic. Employees had

the opportunity to get advice from

psychologists or take time off for

preventive examinations. More than

300 people participated in the

webinars, almost 50 took the

opportunity to consult a psychiatrist,

and more than 60 took time off for

medical appointments.

We recognise the importance of good

mental health, so we took part in the

’Therapy is not shame’ campaign,

which aimed to teach parents to talk

consciously about their emotions with

their children and to help them cope

with difficult situations.

Health and safety

GRI [103-2]: The safety and wellbeing

of our employees is paramount. We

comply with the highest standards and

all regulations related to work safety.

GRI [403-1, 403-2]: Occupational health

and safety is part of the Integrated

Management System in the InPost

Group and is based on the ISO 45001:

2018 standard.

GRI [403-8]: We provide all InPost

employees with the highest possible

level of safety to prevent accidents at

work and occupational diseases, and to

continuously improve the health and

safety across the organisation.

GRI [403-3]: All health-related

information is confidential and

according to the standards provided by

There is a huge emphasis

on people and training and

culture, which is integral and

essential part of effective risk

management.”

Marieke Bax

Chairman of the Audit Committee

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

the Compliance System, it cannot affect

the treatment of workers in any way.

GRI [403-2, 403-4, 403-6]: We are aware

of the great importance of employees

attitude to safe work. Therefore, we

invite them to consult and participate

in shaping solutions related to health

and safety.

GRI [403-3]: We have a five-person

Health and Safety Committee which

meets once every three months. At the

same time, our services responsible for

safety issues regularly carry out activities

to increase the awareness of employees

and contractors in the field of safety as

well as environmental protection and

Occupational, Heals and Safety (OHS).

The Committee is also involved in the

processes used to investigate work-

related incidents.

Health and safety communication

is carried out in accordance with ISO

INS_PP 9-1-100 Informing employees.

Top-down communication concerns

informing employees about hazards

and is carried out by the OHS service

and organisational unit managers.

Bottom-up communication concerns,

among other things, proposals and

suggestions from employees for

reducing work-related risks and

improving health and safety in

the organisation. It is directed to

H&S department and executed in

accordance with the ISO INS_PP 9-1-

11O Consultation and participation in

OSH. Another form for raising concerns

regarding H&S risks is using channels

provided by Whistleblowing Policy (see

page 91). The non-retaliation rule applies

also in this type of reports.

GRI [403-5]: Occupational health

and safety training is carried out in

accordance with applicable legal

regulations. Each employee undergoes

initial training (general and on-the-job

training) and periodic training. In 2021,

983 people were trained. Specialist

training is given by external companies

for people designated to provide first

aid. In 2021, 158 people were trained

in first aid. Employees are also trained

additionally according to the needs

and risks (such as additional training

in the safe operation of transport carts,

or training in reacting to dangerous

shipments).

Short health and safety training courses

are also held during daily briefings.

Employees expand their knowledge

by having access to Health and Safety

Alerts (after accidents) and health and

safety analyses (monthly summaries).

GRI [403-2, 403-9]: Every year we update

the Occupational Risk Assessment for

individual positions in our organisation.

The assessment is based on PHA

method which analyses the scale and

probability of an incident and results in

prioritizing levels of possible incidents.

The identified top 3 potentially most

dangerous situations are freight

departures, linking of conveyor elements

and operation of trolleys. To prevent

them, we implemented new safety

tools, speed limits, the reorganisation of

the relevant workplaces, we introduced

additional linkings markings,

monitoring systems and mandatory

near-miss reporting. None of these

hazards caused or contributed to high-

consequence injuries. Additionally, for

some of the positions in warehouses,

we also carry out work environment

measurements performed by an

accredited testing laboratory included

in our Occupational Risk Assessment.

This includes the level of noise or

exposure to vibrations in work on

forklifts. As a result, no exceedances of

the permissible NDN values for noise

and vibration and vibration were found.

Throughout the organisation, we closely

monitor the number of accidents at

work, which are mainly bruises, sprains,

fractures, and cuts. We keep records

of accidents and near misses, and the

circumstances of each dangerous event

are carefully analysed.

GRI [403-7]: The Health and Safety alerts

provide information about the accident

and tips on how to prevent it in the

future. Health and Safety reports are

regularly submitted to the Company’’s

Management Board. In the years 2020-

2021, we did not record any hazards

related to working in InPost that pose

a risk of serious injury.

GRI [403-9]: In 2020 and 2021 there

were no cases of serious accidents.

However, in the case of minor accidents,

we recorded 52 in InPost SA and Polish

subsidiaries and 394 in Mondial Relay.

In Poland, most of those accidents were

caused by haste in carrying out duties

or resulting from a breach of Health and

Safety regulations. As for Mondial Relay,

such a significant number is a result of

a much wider definition of an accident

provided by the local legal system.

Nevertheless, we aim at reducing

this number by launching a series of

awareness-raising activities across the

company.

Although the supervision of courier

safety issues is not formally the

responsibility of the InPost Group,

we monitor the number of incidents

involving couriers and take preventive

measures to minimise the number of

incidents. Unfortunately, we recorded

one fatal accident involving couriers. This

incident occurred at a railway crossing.

We’d previously launched a series of

InPost SA and

PL subsidiaries Mondial Relay

2021 2020 2021 2020

Minor accidents 52 45 394 369

Serious accidents 0 0 0 0

Table 3: Work-related injuries – selected data [GRI 403-9]

Towards a

sustainable

future continued

Methodology: Entities included: InPost Technology S.a.r.l, Mondial Relay Société par Actions Simplifiée, Integer.pl S.A.,

Integer Group Services sp.z o.o., InPost sp. z o.o., InPost Paczkomaty Sp. z o.o. and temporary employment agencies.

H&S reports do not present data for InPost S.A. and InPost UK Limited.

Data collected separately for Poland and France.

The accident classification complies with local legislation.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

training related to safety in this regard (as

a response to accidents recorded among

our competitors), but it didn’t prevent

this unfortunate situation. We offered

our support to the deceased’s family

and the training will be intensified.

GRI [403-10]: No cases of work-related

ill-health reported in InPost Group in

2021 and 2020.

Courier engagement

GRI [103-2]: At InPost, we always

remember who delivers our shipments;

good relationships with over 7.5

thousand couriers across Poland are

the foundation of our organisation.

In 2019, we implemented our own

standard of InPost’s contract with

couriers, which clearly indicates the

mutual commitments of the company

and couriers.

We know that not everyone who wants

to work as a courier has experience. For

this reason,we created a comprehensive

training programme for all candidates.

We provide practical and theoretical

workshops, and offer the opportunity

to participate in an “induction day,”

that illustrates the job in practice.

We explain the specifics of the job, and

teach them how to use the courier device

– a handheld terminal which includes

a scanner, InPost Courier Application,

ICRA, telephone, a camera, access to

maps, Internet access and payment

terminal. We show them how to stack

parcels correctly into the vehicles, and

how to plan their route. Each courier

also learns the billing procedures at

InPost. The whole process is outlined in

the Guidelines For The InPost Courier

Candidate Training Process and is part

of the ISO standard applicable at InPost.

The quality of our training process

is evidenced by the results–- 88% of

candidates evaluate the theoretical

training as very good or good.

We support the professional

development of the couriers working

with InPost. Each courier can access

our innovative e-learning platform,

EduKurier, which is customised to the

tasks carried out by couriers. Couriers

can count on training related to the

protection of personal data, health &

safety, new processes and products, and

customer service. A key element of the

training are daily and monthly tests.

Before the start of every workday, our

couriers solve a quiz, or morning test.

Each quiz is composed of four short

questions covering knowledge that is

essential for the performance of their

work tasks. The tests review crucial

information and provide information

about newly available services. Almost

90% of our couriers pass the test. Every

month, the couriers with the best

results receive a voucher or reward.

Specialised tests on specific topics are

also conducted with the participation of

all couriers at least once a month.

At InPost, we understand the everyday

challenges of a courier’s work, which is

why we are implementing innovative

and user-friendly solutions to support

tasks. Our ICRA application saves time

for couriers and allows them to operate

parcel lockers almost twice as fast. All

devices provided to couriers also include

the Courier App, which is an easy-to-

use tool to help the courier do their job,

from the moment they receive the order

to the moment of delivery. Thanks to

the Courier App, our couriers can receive

notifications about packages, accept

orders and monitor the availability of

parcel machines.

In addition to their remuneration, our

couriers are also awarded with attractive

benefits. All couriers have access to the

Multisport card on special terms. We also

offer the most affordable life insurance

package on the market, and access to

a large network of health care as a part

of PZU health insurance. We have also

introduced the special “InPost Summer

Tour” summer programme. Couriers

who use their vacation days can receive

vouchers to cover their stay. The value of

the bonus increases with seniority.

We know that motivation is an important

element of our couriers’ jobs, which

is why this year we are implementing

additional campaigns to motivate some

healthy competition. The main element

of the effort to motivate high results is

the “Five-star courier” campaign. Our

Coordinators will identify couriers who

have achieved good results in five of the

most important areas of a courier’s job,

and award them the Kurier na 5 title.

The winner of the ranking will receive a

financial bonus, along with a special vest

they can wear in their department. This

title is held for a month, until the next

winner is determined.

For all employees and couriers, InPost’s

absolute priority is to provide them with

safe working conditions. This applies to

people directly employed by InPost as

well as those performing work indirectly.

Our business partners must comply

with the Code of Conduct for Business

Partners.

Business partners approach

The last group of stakeholders that

significantly influences the development

of the company are our business

partners. The creation of new fields of

collaboration and the development of

complementary services contributes

to mutual growth. An example is the

dynamic expansion of parcel locker

availability in the UK, as a result of

partnerships with retail chains, such

as Tesco and Lidl. This development

significantly increases the comfort

and convenience for their customers,

enhancing their shopping experience.

InPost also began working with eBay,

the biggest e-commerce platform in

the UK. An important step in supporting

partners in developing their potential is

the creation of a fulfilment service, which

gives them the opportunity to focus

on building their portfolio or acquiring

valuable customers by removing the

burden of developing their own logistics.

Beyond the business benefits of

establishing partnerships, it is also

important to join forces to build ESG

competence and grow together in a

sustainable way. This was our aim when

we joined the United Nations Global

Compact and the We Mean Business

initiative. Each of them offers the

opportunity to draw on the knowledge

and experience of recognized entities,

whose maturity in the field of SDGs

implementation will be a great support

for InPost in the implementation of our

ESG strategy.

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

BEST PRACTICE

Keep innovating

InPost’s goal is to amaze and delight

through technology. To do so, we

actively promote an organisational

culture in which innovation, creativity,

and the willingness to chart new paths

are the cornerstones of thinking about

everyday work. We have implemented

a series of processes to encourage

an innovative approach, starting

from strategic planning to execution

management.

Our first step was to build an

Empowerment Team by gathering

change leaders from 11 departments.

Their role is to map out and address

key internal challenges and find

solutions to them. In doing so, they

will strengthen our integrity across all

markets, increasing cross-department

collaboration, and stimulating greater

efficiency and innovation.

We use the design-thinking approach to

drive Innovation in Strategy. In a series

of workshops to develop Value Creation

Plans, ideas were created and repetition

assessed for further development.

In 2021 we laid the foundation for the

creation of an Innovation Lab, through

which every employee, regardless

of the department they work in,

can submit ideas for new services,

products, or processes. The solutions

will also be used for cooperation with

start-ups and other external partners

in areas such as customer experience,

sustainable services and products, and

decarbonisation. The Innovation Lab’s

launch is scheduled for 2022.

Finally, we use innovation to boost

internal efficiency. We conducted a

series of analysis of internal processes

(from model as-is to model to-

be) to map those applicable for

robotisation. From 88 processes

selected for development, 20 have

an implementation documentation

prepared and three of them have

already been launched in 2021.

They cover financial control, risk

management, and general business

management. Importantly, our

employees can submit new ideas for

robotisation every day at the Processes

and Robotisation Centre.

BEST PRACTICE

Take a test for a better day

Providing a best-in-class service is

fundamental to securing our clients’

satisfaction. That is why we have

developed a series of tools in-house

that helps to increase couriers’

competencies. The most important

ones are morning tests that all couriers

take before staring their workday.

Each test consists of a number of

short questions covering the scope

of knowledge necessary to perform

the job effectively. This is a convenient

tool for highlighting key information

related to the core offer and providing

data on newly-launched services. The

daily reminder system translates into

high quality service and great results in

increased capabilities.

There is no InPost without

innovation. For employees, this

means that they can create

new solutions, break out of

patterns, and think outside the

box every day. There aren’t

many companies on the Polish

market that surprise their

customers with new services

or functionalities as often as

we do, and there are not many

companies that are able to

redefine the entire industry

alone. InPost is a place for

people who have the ambition

to change reality.”

Paweł Cegła

IT Department, InPost

Almost 90% of couriers taking

the morning test pass them.

This directly impacts their

score on the competencies

assessment. Being prepared

for everyday challenges has

a positive effect on other

aspects of their job that are

part of regular evaluation:

being detail-oriented, building

a professional image and even

being less susceptible

to stress.”

Leszek Czykiel

Courier Training Department, InPost

Group

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

BEST PRACTICE

Supporting womens’

development in e-commerce

When it comes to female

empowerment, we put our money

where the mouth is. Our commitment

to supporting women in the

development of competencies, as well

as in running their own businesses, is

visible in many areas of the company’s

activity. The knowledge and experience

shared by InPost can become the

foundation of their business for many

female entrepreneurs starting out.

To better support women

starting their journey as

entrepreneurs, we created the

“Top women in e-business”

initiative. The support provided

by a company with such high

level of female employment

at all levels of management

very effectively underpins

the empowerment we wish

to develop. ”

Dorota Bachman

organiser Top women in e-business

We are proud that our organisation

obtained the Highest Quality HR 2022

certificate awarded by the Polish

Association of Human Resource

Management (PSZK). The Highest

Quality HR Certificate is a confirmation

for employees and candidates that

the company is a good, credible and

reliable employer, using the latest

solutions in the field of human capital

management. Awarded employers are

organisations that set trends in human

resource management and promote

high standards of human resource

management in Poland. For 2021,

two projects were awarded – the

“Wellbeing project” and the

‘InPost recruitment project’.

Awards

‘Best Employer’ by Kincentric

‘Poland’s Best Employer’ by Forbes

HR of the Highest Quality

Towards a

sustainable

future continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Future outlook

The ESG transformation will be

executed in three phases across our

markets:

1. Phase I – ESG governance

framework established:

• All necessary policies will be

completed in line with upcoming

regulations and international

standards (CSRD, taxonomy, TCFD

and climate risk management)

• Governance bodies will be

appointed and set up

• Key strategic initiatives will be

developed

2. Phase II – flagship programmes and

reporting processes implemented

• All necessary processes under

implemented policies will be put

in place and running

• Regular reporting processes will

be operational

• Key strategic initiatives will be

scaled up

As a result of the ESG strategy, the

InPost Group will be able to:

• Implement a structure for the

management of ESG issues,

including the responsibilities of

the Supervisory Board and the

Management Board;

• Develop and implement a

number of policies and strategies,

including the strategy for

decarbonisation, social engagement,

or environmental policy, as well

as implementing solutions, which

have proven successful in Poland,

in other markets;

• Monitor progress in meeting targets;

• Report them to internal and external

stakeholders, including investors, on

an ongoing basis

3. Phase III – all commitments will

be delivered:

• Full cross-markets ESG

management integrity

• Key strategic initiatives will be

managed on a market-level

• Regular external assessment for

ESG compliance

The comprehensiveness of the strategy

makes it a crucial tool that strengthens

InPost Group’s integration into all

markets it operates. Thanks to this

strategy, by 2026 InPost Group will be:

• 100% circular in controlled

operations

• 100% climate neutral in scope 1 & 2

• Contributing to climate neutral cities

across Europe thanks to InPost Green

City programme

• the best employer in e-commerce

enablers

• An ESG leader in value-chain

management thanks to green

certification programme

• Positively impacting two million

people thanks to our social

engagement strategy

GRI [102-15, 103-2]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

COMMITTEE

CHAIR

President of the

Management

Board – Rafał Brzoska

STRATEGIC PILLAR

SPONSORS

Rafał Brzoska

Adam Aleksandrowicz

Michael Rouse

InPost GROUP

ESG COMMITTEE

SUPERVISORY BOARD

setting ESG strategic directions and supervision of progress

ESG TEAM

Operationalise and monitor

the delivery on the strategy

ESG MANAGER

(MARKETS)

Report periodically to the team

at the InPost Group level

ADVISORY

BODY

ESG Risk Management

ESG in Supply Chain

Procurement, Sales, Audit, HR, IR,

Green Officer, Diversity & Inclusion Officer

OPERATING TEAMS FOR STRATEGY IMPLEMENTATION

(by area and within cross-disciplinary working teams)

IMPLEMENTATION SUPPORT

• HR

• Finance

• Project Management Office

• Internal communication

• External communication

• We create innovative ad

sustainable services

• We improve the quality of life in cities

• We are part of local communities

• We are committed to decarbonisation,

also through the successive

improvement of operational efficiency

• We support the second-life of products

and raw materials

• We are committed to the

development of our employees

• We support the growth of

business partners

• Diversity is what lets us grow

2 3

ESG governance

structure

GRI [102-18]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

GRI [102-20]: The ESG strategy for the

InPost Group was approved by the

Group’s Supervisory Board, which will

supervise implementation. The Board

appointed the InPost Group ESG

Committee with a sponsor dedicated

for each strategic pillar and Rafał

Brzoska as its chairman.

The Committee consists of:

• Rafał Brzoska – leads overall

supervision and assumes full

managerial responsibility for ESG

management

• Adam Aleksandrowicz – drives

the process of decarbonisation,

climate risk management and the

operationalisation of the ESG strategy

• Michael Rouse – accountable for

implementation of the ESG strategy

across all markets (excl. Poland)

GRI [102-19]: The ESG team will be

responsible for putting the strategy

into operation across the Group. An

ESG manager in each country will

report to the team. The team will have

additional support from an advisory

body consisting of representatives of

implementation-related departments,

including Green Officer and Diversity

& Inclusion Officer positions, which will

be appointed by mid-2022.

The implementation will be managed

and monitored in line with the

strategic pillars. Within these pillars

each commitment will have a Director

responsible for success in achieving the

defined goals.

The company will develop ESG-

related success metrics which will

be incorporated into bonus systems

which will initially apply to the ESG

Committee, and subsequently be

extended further in the company, in

accordance with the strategy.

To provide full understanding

and engagement for reaching all

commitments defined in the ESG

Strategy, a series of ESG trainings for all

employees will be put in place in mid

2022 across the InPost Group.

Material Topics Management

GRI [103-2, 103-3]: Incorporating ESG

strategy into the already existing

management system and its roll-out

across markets is a task set for 2022.

The policies in force for 2021 that set the

management approach for material

topics are presented below or in

Governance section. The Management

Board member responsible for overseeing

those policies is Adam Aleksandrowicz,

CFO. In case of Heath and Safety, the

responsibility lies with Rafal Brzoska, CEO.

Integrated Management System

(IMS)

GRI [103-2]: We are able to maintain high

level of customer satisfaction by always

delivering on the quality of services

provided. This means timely handling of

complete and undamaged shipments

from sender to customer at an optimal

cost of service. To achieve that we

implemented Integrated Management

System Policy which sets Integrated

management System (IMS). The IMS is

based on six ISO standards:

• ISO 9001: 2015

(Quality management)

• ISO 14001:2018

(Environmental management)

• ISO 45001:2018

(Health & Safety management)

• ISO 28000:2007

(Security management)

• ISO 22301:2014

(Security and resilience)

• ISO 27031:2011 (ICT).

The management of the organisation

and its processes takes a risk-based

approach, assessing external and

internal factors. Risks and opportunities

are identified for each process and are

considered when planning, executing,

monitoring, and improving processes.

Where necessary, improvement

actions are taken. The results of the

risk assessment and the effectiveness

of the improvement actions taken

are periodically analysed and taken

into account in further process

management. We report on a quarterly

basis and update the register of

strategic risks with such frequency

(only in relation to strategic risk

management).

Environment Health Safety (EHS)

InPost’s Health and Safety as well as

Environmental departments are linked

and managed by the same people.

GRI [103-2]: The overarching policy

to which we adhere at EHS is the

Integrated Management System Policy.

Health and safety activities are conducted

in accordance with the ISO standard

45001. However, the main procedure

according to which we operate in the

field of occupational health and safety

is The occupational health and safety

management procedure with its

subordinate process instructions. The

purpose of the procedure is to present

all the principles of the Occupational

Health and Safety Management

System concerning the assessment of

occupational risks, the organisation of

work related to risks, the way it is carried

ESG governance

structure

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

out and the documentation occurring in

all organisational units.

HSE Department is responsible for:

• determination of the method of

occupational risk assessment and

supervising its implementation

• performance of occupational

risk assessment of employees at

workstations

• keeping them updated

• monitoring of the state of occupational

health and safety in the organisation.

The organisation, procedures and

preventive measures are applied

continuously to protect employees from

the adverse effects of work conditions.

The risk assessment is reviewed for

relevance once a year (prior to the

review by senior management) or

when new working methods, materials,

processes, equipment or changes in

standards and legal guidelines are

introduced, in addition to every time an

accident occurs.

Awareness and mitigation of

environmental issues is integral to

our company. This manifests itself

through the five environmental targets

with measurable KPIs to reduce the

environmental impact of our operations

to be implemented by the end of 2022.

They are:

• reduction of exhaust emissions

from cars

• reduction of plastic and paper waste

in comparison to the previous year

• to provide services in

environmentally-friendly conditions

• improvement of energy efficiency

• continuous improvement

GRI [103-2]: The environmental policy is

linked to all policies of the Integrated

System and is managed in accordance

with ISO Standard 14001. To ensure

highest quality we conduct external

certifications and then submit to regular

recertification which takes place every

three years. Between recertifications,

review audits are conducted. All

certifications and external audits

are carried out by QS Zurich. So far

certification processes included:

• couriers – ISO 9001 and ISO 14001

(2019), ISO 45001 (January 2022)

• fulfilment services – ISO 9001, 14001

and 45001 (January 2022)

Regarding improvement, the results of

internal audits, process measurement

and process risks are analysed during

each annual review of management

systems. Any irregularities are analysed

and changes recommended in the

form of goals for individual areas, such

as quality, environment, health and

safety, operational continuity safety and

supplier chain safety.

Human Resource:

In terms of Human Resources, we act in

accordance with Polish Labor Code and

internal procedures: Work Regulations,

Remuneration Regulations, Bonus

and Performance Regulations, and

the Recruitment Procedure. Within

this scope of policies, the company

establishes a work environment that

meets clear rules for social respect,

compliance with law, and inclusion (see

Governance, Ethics and compliance

system section). It also defines the

assessment of Management Board

members, including review by

Supervisory Board members and the

Remuneration Committee. Moreover,

we are guided by General Rules for

awarding annual bonuses; Rules of

setting annual targets, Assessment of

target achievement and the Appeal

procedure.

As a company proud of innovation

being part of our DNA, we put special

focus on building a work environment

that nourishes creativity. That translates

into putting diversity at the very

core of our company’s culture. We

strongly believe that gender equality

and a policy of non-discrimination

of any kind gives our employees and

business partners trust and freedom

and empowers them to reach further

and think out of the box. We secure

this work environment from the very

first contact with InPost Group as an

employer by having a clear and open

recruitment policy.

ESG governance

structure

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

Taxonomy

EU Taxonomy –

introduction

Taxonomy defines what types of

investments represent a path towards

a carbon neutral and sustainable

economy. It is an important element

of the EU’s future climate policy action.

Taxonomy will help channel flows

of public and private capital more

effectively in an environmentally

sustainable direction.

According to Taxonomy Regulation to

qualify as environmentally sustainable,

an economic activity shall, among

other things, contribute substantially to

one or more of the six environmental

objectives:

• Climate change mitigation

• Climate change adaption

• Protection of water and marine

resources

• Waste reduction, recycling and

transition to a circular economy

• Pollution prevention and control

• Protection and restoration of

biodiversity and ecosystems

The Group is subject to the obligation

to disclose non-financial data in

accordance with The Non-financial

Reporting Directive (NFDR), falls

under the Taxonomy Regulation

together with the delegated acts:

Delegated Act supplementing Article

8 of the Taxonomy Regulation (“the

Disclosures Delegated Act

”) and the

EU Taxonomy Climate Delegated Act

Therefore in the reporting process for

2021 classification of environmentally

sustainable economic activities applies

only to contribution to the first two of

the environmental objectives: climate

change mitigation and adaptation to

climate change.

In the reports for 2021 non-financial

undertakings are obliged to disclose

only the percentage of eligible and

non-eligible economic activities in

total turnover, capital and operating

expenses, but without checking if they

meet the technical criteria defined

by the Taxonomy; and the additional

qualitative information referred to in

Article 8 Delegated Act point 1.2 of

Annex I.

Analysis of Taxonomy eligible

activities

To meet the obligation under above

quoted regulations, InPost Group has

conducted an analysis of its activities

to identify those that are Taxonomy

eligible. The analysis was based on

the description of Taxonomy-eligible

activities according to the final version

of Climate Delegated Act: Annex I and

Annex II.

For the purpose of CapEx and OpEx

KPIs calculations we have analyzed

relevant expenditures on assets

and processes and identified the

related economic activity described

in the Climate Delegated Act. As the

allocation of eligible CapEx and OpEx

was conducted on case-by-case basis,

we ensure that no expenditure is

considered more than once.

Taxonomy eligible activities in

terms of turnover

The Group classifies it’s main revenue

streams (i.e. APM and courier deliveries)

as taxonomy eligible due to the fact

that they fall under Activity 6.6 Freight

transport services by road.

Taxonomy eligible activities in terms

of CapEx and OpEx

The Group classifies the Capex and

OpEx expenditures related to the APM

and courier deliveries as taxonomy

eligible due to the fact that they fall

under Activity 6.6 Freight transport

services by road.

InPost Taxonomy KPIs for 2021

KPI for turnover 98.3%

KPI for capex 80.6%

KPI for opex 93.1%

KPI non-eligible 6.9%

Information consolidation process

Consolidation rules applied for

the purpose of calculation of KPIs

(Turnover, CapEx, OpEx) are the same,

as the rules applied by InPost for the

purpose of preparation of consolidated

financial statements.

Regulation EU 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation 2019/2088 published on 10 December, 2021.

Commission Delegated Regulation (EU) 2021/2178 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings

subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation published on 10 December, 2021.

Commission Delegated Regulation (EU) 2021/2139 of 4 June, 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions

under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other

environmental objectives.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

The information consolidation process

was subject to analysis and control

by the team in charge of reporting

data by activities (eligibility) or by

facilities, projects, services or products

(alignment), and by the corporate

Reporting team (in charge of reporting

the Group’s consolidated indicators)

and by the CSR Manager (in charge

of coordinating and preparing

the Taxonomy Report) to ensure

consistency in the criteria adopted

for reporting the indicators, the

treatment of intra-group operations

and the breakdown of the indicators

by business activity segment or sub-

segment.

Contextual information &

Accounting policy

The core business of the InPost

Group is delivering parcels either to

the APMs or to-door. This activity is

classified as taxonomy eligible and falls

under Activity 6.6 Freight transport

services by road.

• KPI for turnover

Denominator - the turnover shall cover

the revenue recognised pursuant to

International Accounting Standard

(IAS) 1, paragraph 82(a).

References to the Consolidated

Financial Statements for the year

ended 31 December 2021:

• Net turnover presented in the

Consolidated Income Statement for

the year ended 31 December 2021 -

note 12.1

Revenue from sales of services is

measured based on the consideration

to which the Group expects to be

entitled in a contract with a customer

and excludes amounts collected on

behalf of third parties.

Numerator - the part of the net turnover

derived from products or services,

including intangibles, associated with

Taxonomy eligible economic activities.

InPost Group calculates taxonomy –

eligible turnover as revenue generated

Activity 6.6 Freight transport services by

road. This includes turnover from the

Group’s activities, where InPost Group

provides courier and APM services.

• KPI for CapEx

Denominator - shall cover additions

to tangible and intangible assets

during the financial year considered

before depreciation, amortisation

and any re-measurements, including

those resulting from revaluations and

impairments, for the relevant financial

year and excluding fair value changes.

The denominator shall also cover

additions to tangible and intangible

assets resulting from business

combinations.

The Group’s additions of property,

plant and equipment and intangible

assets including those from business

combinations determined at fair value

and including additions of right-of-use

assets.

References to the Consolidated

Financial Statements for the year

ended 31 December 2021:

• Intangible assets – note 19.

• Property, Plant and Equipment

additions (including right-of-use

assets additions) – note 20.

Numerator - equals to the part of the

capital expenditure included in the

denominator that is any of the following:

(a) related to assets or processes that

are associated with Taxonomy eligible

economic activities;

(b) part of a plan to expand Taxonomy

eligible economic activities or to allow

Taxonomy-eligible economic activities

to become Taxonomy eligible (‘CapEx

plan’);

from Taxonomy eligible economic

activities and individual measures

enabling the target activities to become

low-carbon or to lead to greenhouse

gas reductions, as well as other

economic activities and provided that

such measures are implemented and

operational within 18 months.

InPost Group calculates Taxonomy

eligible capex from Activity 6.6 Freight

transport services by road. Long-

term leases of cars measured at cost

less accumulated depreciation and

impairment losses, long-term leases of

land for purpose of APM deployment

and APM additions. The Group does

not include additions to development

projects connected with logistic

software and additions connected with

new logistic hubs..

• KPI for OpEx

Denominator – shall cover direct

non-capitalised costs that relate to

research and development, building

renovation measures, short-term

lease, maintenance and repair, and

any other direct expenditures relating

to the day-to-day servicing of assets

of property, plant and equipment

by the undertaking or third party to

whom activities are outsourced that

are necessary to ensure the continued

and effective functioning of such assets.

Taxonomy

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report Sustainability report

Financial statements

Corporate governance

About the report

InPost Group has not included wages of

employees working on IT maintenance

in OpEx, as these are not defined as an

costs related to day-to-day servicing of

property, plant and equipment.

Numerator - equals to the part of the

operating expenditure included in

the denominator that is any of the

following:

(a) related to assets or processes

associated with Taxonomy eligible

economic activities, including training

and other human resources adaptation

needs, and direct non-capitalised

costs that represent research and

development;

(b) part of the CapEx plan to expand

Taxonomy eligible economic activities

or allow Taxonomy-eligible economic

activities to become Taxonomy eligible

within a predefined timeframe;

from Taxonomy eligible economic

activities and to individual measures

enabling the target activities to become

low-carbon or to lead to greenhouse gas

reductions as well as individual building

renovation measures and provided that

such measures are implemented and

operational within 18 months.

For the Group Taxonomy eligible OpEx

includes maintenance costs for APM

network, research costs connected with

development of new APM types which

fall under Activity 6.6 Freight transport

services by road.

Taxonomy

continued

Corporate

governance

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Corporate governance

2021 was the year of InPost S.A.’s

initial public offering on Euronext

Amsterdam. We also experienced the

rapid growth of our presence in the UK

and the acquisition of Mondial Relay.

Such dynamic growth poses a great

challenge, taking into account the

scale of integration. This task requires

the development of a governance

ecosystem that will be resilient to

the rapidly changing e-commerce

environment, and which will secure

flexibility in maintaining relations with

a variety of stakeholders along the

value chain. In 2021 we have focused on

the unification and standardisation of

key policies and procedures across the

Group, for our complex management

system. In 2022 we will continue to

integrate compliance including ESG

and to strengthen the integrated,

ethical, and values-driven corporate

culture.

Internal

Ethics and compliance system

Code of Conduct, Anti-Corruption Policy

Insider Trading Policy, Anti-Harrassment

and Anti-Discrimination Policy,

Diversity Policy, Whistleblower Policy

Complementary policies

Cybersecurity, Data Protection Policy

Framework

External

Risk management

Approach to tax

AML/CTF policy (regards Poland clients)

Supply chain

Suppliers’ Code of Conduct

Business Partner Verification Procedure

Governance ecosystem

We want to be performance-driven, focused on innovation

and customer experience, but at the same time also on good

governance, ethics, compliance, making evidence-based decisions

based on data. Unifying several governance systems into one

body that enables us to reach our ambitions, at the same time

giving us tools to protect the company from emerging risks, is

one of the most important tasks we have set out to accomplish

in 2022. Although a core of this system is already in place, various

integration processes must happen. We embrace this challenge

and see it as a way to build a strong organisation based on

consistent values, aiming for one common goal.”

Adam Aleksandrowicz

CFO

GRI [103-2]

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

We define our governance

ecosystem as a set of

solutions (procedures,

processes, and tools) that

regulate both internal

relations within the Group

and our relationships with

our external environment,

with emphasis on the

supply chain and tax

compliance.

GRI [102-12]: Its fundamentals are

developed in accordance with domestic

and international law, with respect for

human dignity and the necessity for the

protection of human rights as expressed

in the Universal Declaration of Human

Rights. We strive to contribute to SDG

16 and SDG 17. As a member of United

Nations Global Compact, we will fully

comply with its principles:

The legal framework for The InPost

Group governance is determined by

Luxembourg Law and the Articles

of Association. The Company has

also chosen to voluntarily apply the

regulations of the Dutch Corporate

Governance Code.

Principle 1:

Businesses should support and respect

the protection of internationally

proclaimed human rights; and

Principle 2:

make sure that they are not complicit in

human rights abuses.

Principle 4:

Elimination of all forms of forced and

compulsory labour.

Principle 3:

Businesses should uphold the freedom

of association and the effective

recognition of the right to collective

bargaining.

Principle 5:

Effective abolition of child labour.

Principle 6:

Elimination of discrimination in respect

of employment and occupation.

Principle 7:

Businesses should support a

precautionary approach to

environmental challenges.

Principle 9:

Encourage the development and

diffusion of environmentally friendly

technologies.

Principle 8:

Undertake initiatives to promote greater

environmental responsibility.

Principle 10:

Businesses should work against

corruption in all its forms, including

extortion and bribery.

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

DEVIATIONS FROM THE

DUTCH CORPORATE

GOVERNANCE CODE

As a public limited company organised

under the laws of the Grand Duchy

of Luxembourg, the Company is

not subject to the Dutch Corporate

Governance Code. However, the

Company has chosen to voluntarily

apply the regulations of the Code.

The Management Board and the

Supervisory Board believe that

deviations of some individual provisions

of the Code are justified. These

deviations are explained below.

Internal audit function – best

practice provisions 1.3.1-1.3.5

In 2021 the Company did not comply

with best practice provisions 1.3.1

through 1.3.5, regarding the internal

audit function. The Company deviated

from this best practice provision as it

did not have a separate department for

the internal audit function. However, the

Company has hired an internal audit

Director in 2022 and is in progress of

establishing the function.

Independence of the Supervisory

Board – best practice provision 2.1.7

The Company does not comply with

best practice provision 2.1.7, which

provides that in order to safeguard its

independence, the Supervisory Board

should be composed in accordance

with the criteria as set out in best

practice provisions 2.1.7 and 2.1.8. The

Company deviates from best practice

provision 2.1.7 (iii) as two of the members

of the Supervisory Board are appointed

upon nomination of AI Prime and A&R.

Establishment of the Committees –

best practice provision 2.3.2

The Company does not comply with

best practice provision 2.3.2, which

provides that if there are more than

four Supervisory Board members,

the Supervisory Board shall appoint

an audit committee, a remuneration

committee and a selection and

appointment committee. The Company

deviates from this best practice

provision as the functions and the

responsibilities of the remuneration

committee and the selection and

appointment committee are combined

in one committee, the Selection,

Appointment and Remuneration

Committee.

Remuneration Policy – best practice

provision 3.1.2

The Company does not fully comply

with best practice provision 3.1.2, which

provides that if Management Board

members are awarded remuneration in

the form of shares, these shares should

be held for at least five years after they

are awarded. The Company deviates

from this best practice provision as

the Company’s Remuneration Policy

requires members of the Management

Board to hold any shares acquired

pursuant to their annual deferred bonus

for three years rather than five years

after they have been awarded.

Remuneration of Supervisory Board

member – best practice provision

3.3.2

The Company does not comply with

best practice provision 3.3.2, which

provides that Supervisory Board

members may not be awarded

remuneration in the form of shares.

The Company deviates from this best

practice provision as certain members

of the Supervisory Board may, as

per the agreed policy, receive up to

25% of their annual remuneration

in Shares. For 2021, none of the

members of the Supervisory Board

received any remuneration in Shares.

The remuneration of the Supervisory

Board members, including the share

component, is not dependent on the

results of the Company or the Group.

Cancelling the binding nature of

a nomination of dismissal – best

practice provision 4.3.3

Pursuant to the Articles of Association,

AI Prime has a right to nominate

candidates for appointment as

members of the Supervisory Board.

Pursuant to Luxembourg law, if AI

Prime, when exercising its nomination

right, includes at least two candidates

for the position in the proposal for the

appointment to the Supervisory Board,

the General Meeting has to appoint one

of the proposed candidates. In that case,

it is not possible under Luxembourg

law to set aside the binding nature of

the nomination right, which results in a

deviation from best practice provision

4.3.3.

The Committee’s responsibilities

include primarily (but are not limited

to): determining on a timely basis

the disclosure treatment of Inside

Information and other material

information; assisting in the design,

implementation and periodic

evaluation of disclosure controls and

procedures; identification of Inside

Information and Insider List and

ensuring its compliance with the

provisions of the Company’s Insider

Trading Policy.

The general quorum for a meeting of

the Disclosure Committee is any two

members of the Management Board

and the Supervisory Board, one of

whom must be the Chief Executive

Officer or the Chief Financial Officer and

one must be one of the independent

Supervisory Board members. In case of

a significant event or issue, the Secretary

of the Disclosure Committee may

decide that it is necessary for both the

Chief Financial Officer and the Chief

Executive Officer to participate in the

Disclosure Committee.

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Ethics and

Compliance System

[GRI 102-16] With the ambition of being

a sustainability leader in e-commerce,

we keep our company values at the

heart of every decision-making process

to ensure that we grow together with

our employees and business partners

along the value chain.

1. Internal governance

Corporate governance

continued

Mission, vision and

corporate values

Policies and procedures

Whistleblowing

line

Compliance officer

We keep our company values

at the heart of every decision-

making process to ensure that

we grow together with our

employees and business

partners along the value chain.

Monitoring

and reporting

Training and

communication

Having a strong corporate

governance is an advantage;

It is a means of setting yourself

apart and communicating

clearly to your stakeholders.”

Marieke Bax

Chairperson of the Audit Committee

Fig. 12 Internal governance and compliance scheme

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

GRI [103-2]: Before entering new

markets and the Mondial Relay

acquisition, Polish InPost was a value-

based and purpose-driven company.

As we have become InPost Group, we

bring this attitude to new markets. Our

core values remain the same. Strong

ethics supported by a comprehensive

compliance system are at the heart

of our governance system and guide

the daily decision-making of all

our employees. With the growing

importance of subsidiaries outside of

Poland, we have identified the need to

provide one set of regulations to which

all employees across markets could

refer. For this purpose, we have replaced

the existing policies with the new InPost

Group Compliance System applicable

across the whole Group. It consists of

the InPost Group Code of Conduct,

which is an overarching policy and can

also be regarded as our business ethics

policy, and accompanying policies

which contain more detailed guidelines

relating to topics described in the Code

of Conduct:

• InPost Group Code of Conduct

– the general policy, setting the

standards and tone for the entire

Compliance System. It sets high-

level standards of conduct for

employees and management,

presents the organisation’s

approach to matters such as

corruption, relationships with third

parties, reporting of irregularities,

discrimination, and diversity. It also

describes the role of the Compliance

Officer in the organisation.

• Anti-Corruption Policy – a document

describing standards of conduct in

relationships with suppliers, clients,

and public authorities, aimed at

preventing all forms of corruption

and other illegal or illicit behaviours.

The Policy considers the legal

frameworks regarding corruption,

bribery and influence peddling in

all jurisdictions where the Group

conducts its business operations. It

states that InPost Group does not

support any political parties and

it does not engage in any political

events. The Policy also includes case

studies facilitating the understanding

of standards of conduct. [GRI 415-1]

• GRI [103-3]: Anti-harassment and

Anti-discrimination Policy – the policy

for all employees of the Group, setting

the standard of conduct in relation

to colleagues, supervisors, junior staff,

and potential employees, and aimed

at preventing employee complaints

and conflict in the workplace. It

outlines the Group’s zero-tolerance

approach to discrimination,

workplace harassment, sexual

harassment, and other forms of

unwanted behaviour. The Policy

also provides the framework for

addressing incidents related to

discrimination and harassment.

• Diversity Policy – the policy

setting the standard for hiring new

employees, aimed at promoting

a fair, merit-based hiring process.

The Policy sets the guidelines for

individuals involved in the hiring

process. It prohibits discrimination

based on age, skin colour, disability,

gender, marital status, nationality,

race, religion, sexual orientation or

other ethnic or cultural aspects. The

guidelines apply to all employees,

including the Board members and

the Executive Committee.

• Insider Trading Policy – the policy

regarding restrictions in trading in

InPost S.A. shares and other InPost

S.A. securities. The Policy explains the

conditions by which an employee is

awarded insider status and explains

the regulatory framework around

trading in InPost S.A. securities.

• AML/CTF Policy – introduced at

InPost sp. z o.o., which holds an

obliged entity status as a postal

operator under Polish law. The Policy

provides a framework for compliance

with the relevant legal framework,

including the processes of client

identification and ultimate beneficial

owner identification. The policy also

introduces the role of an Anti-Money

Laundering (AML) Manager.

• Know Your Customer (KYC) Policy

– a policy introduced at InPost

sp. z o.o., aimed at reducing risk

in dealing with third parties, i.e.

suppliers and clients who are not

subject to KYC verification. The

Policy outlines the duties of the

employees in relation to supplier

and client verification.

The policies included in the

compliance system were drafted

by the Compliance Officer in broad

cooperation with internal departments.

The compliance policies were formally

approved by the Management Board

by way of a Management Board

resolution. Based on our experience as

an organisation, and having identified

the current market trends, we have

extracted four core values: compliance

with applicable laws, honesty, integrity,

and openness. The InPost Group

Code of Conduct sets the standards of

conduct for the Group’s employees and

management in areas such as conflict

of interest, corruption, integrity in

cooperation with third parties and other

staff members, as well as in financial

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

reporting, compliance with applicable

laws, and health and safety.

The Code of Conduct introduces the

Compliance Officer and describes

their role in the organisation. The

Compliance Officer is to revise

the compliance system so that it

responds to the current needs of

the organisation, to implement the

system and communicate it to both

the employees and other stakeholders.

They are also responsible for providing

training for the employees and

monitoring the compliance system

by responding to the employees’

queries and performing investigations

as needed. Although the Compliance

Officer maintains the highest level

of independence, organisationally

they report to the Group CFO, who

is responsible for overseeing the

compliance area across InPost Group.

The Compliance Officer supervises the

compliance system at the Group level

and has their counterparts on each

market, who report to them indirectly.

Our Code of Conduct and the

accompanying policies are available in

English via the inpost.eu website with

unlimited access for all employees,

business partners and other

stakeholders. The policies have been

translated into Polish and are available

on the company intranet. They will

also soon be made available to our

Italian and French employees via the

respective subsidiaries’ intranets in

their respective languages, as well

as in English.

Corporate governance

continued

Ethics and compliance

system

Compliance Officer

Risk management team

Risk Officer

IT security team

IT Security Team Manager,

Quality and Operational

Security Officer

Data protection office

Data Protection Officer

Chief Financial Officer

Chief Executive

Officer

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Whistleblowing and

concerns raised

GRI [205-3]: Zero incidents of corruption

(alleged or confirmed) in 2021

GRI [102-17, 103-2]: A critical element

of a well-functioning compliance

system is a mechanism for feedback

and concerns about ethics. Described

in the Whistleblowing Policy, the

reporting mechanism is based on a

non-retaliation policy and a guarantee

of the whistleblower’s anonymity. The

employees are instructed that the

Compliance Officer will not take any

actions to establish a whistleblower’s

identity. The whistleblowers are

assured that their reports will not be

considered with less attention than if

they had contained personal details

of the whistleblower. All reports are

treated with confidentiality by the

Compliance Officer. If the Compliance

Officer decides they need support from

another person within the organisation

in order to conduct an investigation

properly, the person involved is obliged

to maintain confidentiality as well.

People both inside and outside the

organisation can voice their concerns

about unethical or illicit behaviour via

e-mail:

• compliance@inpost.pl or

compliance@inpost.eu, which was

added in 2021 in response to the

new teams across Europe

• Traditional post addressed to the

Compliance Officer in the Kraków,

Poland headquarters, whereby the

persons receiving mail are instructed

that any correspondence addressed

to the Compliance Officer is not to

be opened and is to be immediately

delivered personally to the

Compliance Officer

• SpeakUp whistleblowing platform

applied throughout the organisation.

The platform can be accessed via

a mobile app or a website. It gives

the whistleblowers the opportunity

to notify the Compliance Officer

completely anonymously and in any

language used in the organisation.

The platform provides secure

machine translation of any report

into English if needed. Additionally,

all data regarding a report is erased

from the system within 30 days of

closing a given case by the case

handler to ensure that data security is

always maintained.

All channels of communication are

available 24/7 and reports can be made

in any of the languages used in the

organisation: Polish, English, French,

Italian, Portuguese, Spanish, German,

and Dutch (Netherlands and Belgium),

and it is the Compliance Officer’s

responsibility to ensure communications

with the person reporting, in a language

they understand. Reports regarding

compliance incidents not made directly

to the Compliance Officer (e.g. to the

relevant HR office) are forwarded to the

Compliance Officer in order to ensure

the Compliance Officer has all relevant

knowledge of alleged breaches of ethics

in the whole organisation.

As a company, we go beyond

a “zero tolerance for corruption”

approach. We build our

relationships with employees

and various partners on mutual

trust and open dialogue.

Therefore, both reports and

enquiries are welcomed and

deeply appreciated.”

Arleta Adamus

Compliance Officer

Arleta Adamus joined InPost in 2018 as the Director of the Legal Department for Integer

pl S.A. and its subsidiaries in Poland. From January 2021 she is a Compliance Officer

for InPost S.A. Group and Group General Counsel. Previously, she was legal counsel in a

leading terrestrial TV and radio broadcast infrastructure operator in Poland and worked

as a legal counsel in the Capital Group of the largest fuel company in Central Europe.

Arleta is also a certified mediator and compliance officer.

Corporate governance

continued

In such instances, the Compliance

Officer offers support and advice in

investigating a report. Every report is

analysed by means of a case-by-case

approach which allows the adjustment

of tools used to best address the

situation. Finally, the Compliance

Officer is required to inform the

Chairperson of the Supervisory Board

of every new report and submit a

written summary of actions taken and

the resolution of an investigation to the

Audit Committee.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Type of incident Poland Mondial Relay UK

Reported Confirmed Reported Confirmed Reported Confirmed

Conflict of

interests

0 0 0 0 0 0

Corruption 0 0 0 0 0 0

Harrassment/

discrimination

1 1

Not

available

Not

available

0 0

In 2021, only two compliance incidents

were reported in Poland. The first

incident was resolved and the employee

responsible for misconduct had their

employment contract terminated

without notice. The incident,

investigation or resolution in this case

did not affect processes or procedures

in place at InPost Group. The second

case was deemed unsubstantiated.

GRI [307-1, 419-1]: Additionally, as of

31 December, 2021, there have been

no incidents of corruption, whether

alleged or confirmed. There were no

incidents in which employees were

dismissed or disciplined for corruption.

We have not had a single case of

discrimination reported in the Group

over the last two years. No cases of

non-compliance with environmental

laws and regulations were registered

or issued, neither were cases of non-

compliance with laws and regulations

in the social and economic area.

Reporting channels were used twice

to report cases of possible conflicts

of interests and bribery with the

Compliance Officer, which shows

both the effectiveness of conducted

trainings and the trust put in the

Compliance Officer.

Recruitment free of discrimination

GRI [103-2]: The status of the Diversity

Policy as one of the pillars of our

Compliance System has resulted in

the development of a recruitment

procedure for the Polish companies

which was then adopted as the

general guideline throughout InPost

Group. Its goal is to ensure equal

employment opportunities without

discrimination or harassment on the

basis of race, ethnicity, religion, sex,

sexual orientation, gender identity

or expression, age, disability, marital

status, citizenship, national origin,

genetic information, or any other

characteristic protected by law.

InPost Group prohibits any such

discrimination or harassment.

The following general rules apply for recruitment process in InPost Group:

• EQUALITY: All candidates involved in the recruitment process are treated equally.

• CONFIDENTIALITY: All the information provided by the candidate must be treated

as confidential and must not be shared with anyone who is not involved in the

recruitment or decision-making process.

• RESPONSIBILITY: All Hiring Managers or employees involved in the recruitment

process need to be prepared to perform such roles.

• PROFESSIONALISM: It is important to perform all recruitment processes with the

highest quality of professionalism, creating a positive candidate experience.

• TRANSPARENCY: When the Hiring Manager has a close relationship with a

considered candidate, another person is required to participate to verify the

candidate’s competencies.

Individuals who believe they have been the victim of misconduct can report the

situation through the candidate experience survey form, which is available to those

participating in the hiring process. All reported allegations of discrimination are

subject to investigation in line with the procedure set in Whistleblowing Policy.

Corporate governance

continued

All employees were introduced to

the new Compliance System of

the InPost Group

GRI [406-1] Incidents of discrimination

GRI [205-3] Confirmed incidents of corruption

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Communication and training

The new Compliance System launch

was communicated by the Compliance

Officer to all employees throughout

InPost Group via e-mail and dedicated

training.

Contact points for raising concerns

are communicated via the inpost.eu

website’s contact site, as well as on

the Intranet sites of our subsidiaries so

that the employees can easily find the

relevant e-mail address. Additionally, the

introduction of the new reporting tool

was communicated to all employees via

e-mail; the employees in each country

received an e-mail with an access link

and QR code for the platform and a

brief user manual in their respective

languages.

GRI [205-2]: The launch of the

Compliance System was followed by

a compulsory compliance training

for all employees in Poland and was

conducted via an on-line training

platform. The training consisted of

two parts (a presentation and a test)

and covered all policies that are part

of the system. 87% (3,474) employees

completed the training successfully. Our

compliance plan accounts for an annual

compulsory compliance training for

all employees. The on-line training has

GRI [205-2] Communication and training about anti-corruption policies and procedures

Number of employees that received training

InPost SA and PL

subsidiaries 2021

Mondial Relay

2021

Management Board 5 (100%) 10 (100%)

Supervisory Board 0 (0%) 0 (0%)

Senior Management 15 (63%) 0 (0%)

Middle Management 268 (81%) 0 (0%)

Other employees 3,192 (88%) 0 (0%)

The organisation’s anti-corruption policies and procedures have been communicated to 100% of all groups of employees.

proved efficient and allows us to track

the number of participants and their

progress. Therefore, it will remain the

preferred way to provide compliance

training to the employees.

Moreover, compliance training has

become a part of the onboarding

training for new employees in

Poland since the middle of 2021. The

onboarding training is done on-line,

and the compliance segment contains

a pre-recorded video presentation

conducted by a member of the legal

team. Between 01 June, 2021 and

31 December, 2021, over 1,000 new hires

received compliance training and were

informed that the relevant policies can

be found on the company Intranet as

well as on the inpost.eu website. We will

continue to provide compliance training

as a part of onboarding training in 2022.

Complementary Policies

GRI [203-2, 103-3]: We identified two

areas that are crucial for conducting our

business and its protection depends on

building a resilient internal framework

with a capacity building system that

supports it. As we rely on data, both

consumer and client, we constantly

improve processes and solutions in

cybersecurity and data protection,

keeping in mind not only compliance

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

high-level of awareness of employees in

the field of data security.

Following the Policy, at least twice

a year we perform cyber risk

assessments in terms of two main

aspects, Severity and Confidence,

which results in the implementation

of appropriate processes. Moreover,

we conduct internal security tests to

assess the effectiveness of technical

and organisational security measures

at least once a year (or in the case

of significant changes). Once a

year, an external audit is carried

out in accordance with the NIST

Cyberframework.

In terms of cybersecurity, we also

apply other subordinate policies such

as Acceptable Use Policy, Business

Continuity Management Security Policy,

Cryptography Policy, HR Security Policy,

Identity and User Access Management

Policy, Information Classification

Policy, Information Security Policy,

IT Operations Security Policy,

Network Security Policy, Systems and

Applications Security Policy, and the

Vulnerability Management Policy. They

cover the area of information security

management in accordance with

ISO27001 and the NIST Cybersecurity

Framework.

The roles and responsibilities regarding

information security have been

established in accordance with the

Information Security Policy document.

In order to pursue the aforementioned

actions, the key roles and

responsibilities concerning information

security have been assigned to

managing persons in the Group,

particularly to: the IT Security Team

Manager – in the scope of data security

and protection of ICT systems; DPO –

Data Protection Officer, with regard to

personal data protection; Operational

Security Office manager with regard

to physical security; Compliance

Officer – in the scope of ensuring legal

compliance and compliance with valid

internal regulations; Risk Officer – in

the scope of risk management. The

IT Security Team, in cooperation with

the Data Protection Team and the

Quality and Operational Security Office

under supervision of the manager of

the IT Security Team, is responsible for

taking any actions related to operating,

monitoring, reviewing, maintaining

and improving the established

Information Security Management

System (ISMS).

Corporate governance

continued

with laws, but also enabling better

efficiency for further growth by securing

best-in-class infrastructure.

In both areas we developed training

systems that consist of training for

employees and new hires where both

cybersecurity and data protection are

part of the onboarding process. When

necessary, trainings for particular

departments or even individual ones

are put in place. For cybersecurity we

also developed 16 phishing attack

scenarios and carried out almost 20

stress tests.

Cybersecurity

GRI [103-2]: One of the main foundations

of e-commerce is data. We pay special

attention to data protection. As the

threats in this area increase, we are

constantly improving our solutions and

implementing new security measures.

GRI [103-2]: We operate in accordance

with the Information Security

Policy that is linked with strategic

objectives and the prioritisation of

the organisation. The policy guides

the business on how to effectively

implement cybersecurity by: ensuring

compliance with legal requirements;

confidentiality, integrity and availability

of data and IT services; technical and

organisational security measures; and a

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

GRI [418-1]: Substantiated complaints concerning breaches of customer privacy and losses of customer data

InPost S.A.,

UK and PL subsidiaries Mondial Relay

2021 2020 2021 2020

Substantiated complaints received concerning breaches of customer privacy: 45 40 0 0

– Complaints received from outside parties and substantiated

by the organisation

40 36 0 0

– Complaints from regulatory bodies 5 4 0 0

Total number of identified leaks, thefts, or losses of customer data. 2 2 1 n/a

All complaints for InPost UK are included in InPost SA

and PL subsidiaries total.

Please note that we do not maintain a separate register

for InPost S.A and InPost UK. Records of data subjects’

requests and complaints are kept separately for InPost

Technology S.a.r.l, Integer.pl S.A., Integer Group Services

sp.z o.o., InPost sp. z o.o., InPost Paczkomaty Sp. z o.o.

and Mondial Relay.

Data protection

GRI [103-2]: The security of InPost’s

customer data is our top priority.

Therefore, we take all measures to

safeguard and improve data security. To

ensure full compliance with legislation,

in particular with the General Data

Protection Regulation (GDPR), we

have adopted a system of standards

and guidelines designed to provide a

high level of protection for customers,

employees and suppliers. One of the

main documents introduced within

the organisation is the Personal

Data Security Policy. It determines

the basic principles and methods of

ensuring personal data safety applied

by all companies that are members of

InPost S.A. The organisation’s strategic

goals for data protection include

ensuring that legal requirements are

met; confidentiality, integrity of the

personal data processed and continuity

of access to the data; technical and

organisational security measures; and

a high level of employee awareness

concerning personal data security.

We have implemented technical and

organisational solutions that provide

clear and accessible communication

mechanisms with data subjects and

allow them to apply their rights,

including the right to access, erase,

rectify, supplement or amend their

personal data.

The InPost Group data protection

framework consists of:

• Procedure for handling requests

from data subjects on the exercise of

rights in relation to the processing of

personal data – specifies the general

framework for handling a person’s

demands directed to the Controller,

related to the Data Subject Rights

• Procedure for the assessment and

notification of personal data breaches

- defines the general principles

for the assessment, recording

and notification of Personal Data

Breaches under the GDPR

• Data retention policy – specifies

the principles for processing data

in accordance with the principle of

limited retention

• Procedure for risk analysis and

impact assessment of personal data

processing - describes the principles

of conducting risk analysis for the

protection of Personal Data

Due diligence procedures have not

been introduced within the adopted

policies, yet all procedures are subject to

regular internal audits . Based on latest

audit, no changes in procedures are

required. We provide capacity-building

communication and staff training to

strengthen awareness and ensure

adaptation to any emerging risks.

Compliance with the personal data

protection principles is supervised

by the Data Protection Officer. The

individual is supported by the Data

Protection Team in each subsidiary.

Corporate governance

continued

The number of complaints and breaches registered in Poland includes both cases reported by customers

and those identified internally and reported to the relevant authorities by InPost. Most consumer complaints

concerned lost parcels. The proceedings conducted by the Office of the Protection of Personal Data as a

result of complaints regarding the manner of processing personal data did not result in negative decisions for

InPost.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Approach to tax

GRI [207-1] Our approach to tax matters

has been formed in line with core

organisational values and principles,

with the purpose of correct and

timely tax contributions as well as the

protection of our reputation within the

international community.

The correct and reliable fulfilment

of tax obligations constitutes the

cornerstone of social responsibility

and an important element of InPost

Group’s overall economic strategy.

We have implemented procedures

and processes to comply with all tax

obligations under the respective tax

laws and deployed processes and

procedures to identify potential tax

risks at an early stage. Compliance with

these procedures is monitored by the

respective employees and supervised

by the Management Board.

The Management Board reviews

and approves the tax strategy. The

Management Board quarterly revises

and updates the Group’s tax strategy

to ensure its relevancy as well as

alignment with the Group’s wider

purpose and code of ethics.

The tax strategy is harmonised within

the Group and applicable to all its

subsidiaries. The tax strategy is publicly

available on (Informacje o strategii

podatkowej | Grupa Kapitałowa Integer.

pl; Tax strategy of InPost S.A. (Lux)).

The key principles of the strategy can

be summarised as follows:

• The diligent application of tax law as

well as its most recent interpretation

by the relevant tax authorities

supported by publicly available

government explanations and court

rulings;

• Continuous monitoring of changes

in the tax law and evolutions in tax

interpretations and relevant practices;

• A cautious approach towards

tax risks, which minimalises the

likelihood of disputes in case of

unclear regulations. Identified risks

are managed by the tax specialists

responsible for the possible related

tax obligation in cooperation with

the leader of the tax department and

other relevant employees. We are risk

averse and in the case of ambiguity

related to taxes, we seek confirmation

from the respective tax authorities

through tax rulings, opinions, etc.

• The inclusion of tax consequences

while making economic or business-

related decisions.

• The introduction and application

of extensive and detailed internal

tax procedures which ensure

tax compliance at every level

of the organisation and aid the

identification of tax risks at an

early stage. These procedures

include but are not limited to those

regarding proper recognition of

economic events for tax purposes,

calculations of tax liability,

processing of tax documentation,

communication with tax authorities,

and the spread of information

about tax developments among our

stakeholders.

• The practice of hiring experienced

tax professionals, continually

2. External governance

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Corporate governance

continued

investing in their development

(including trainings on current tax

matters) as well as seeking advice

from external renowned tax advisors

with regards to complex matters.

• The practice of trainings and exchange

of experience between those

responsible for managing tax functions.

• Use of specific software developed

by a reputable external company

aiming at proper calculation and

verification of our tax settlements.

The technology constitutes an

important role in the tax strategy

(all accounts are prepared using a

specialised software, addressing

management of tax data such as

obligatory standard audit files in

Poland or electronically submitted

tax declarations).

Tax Governance, control and

risk management

GRI [207-2] InPost Group organisational

structure ensures the appropriate flow

of information, division of duties and

responsibilities within the individual

departments. The tax policy is

supervised by the Chief Financial Officer.

Management, who together with the

Tax and Accounting Department, is

responsible for the correct settlement

of the Group’s tax obligations.

Tax governance is covered by internal

control and external audit.

[GRI 207-1]: The Supervisory Board and

the Management Board engage in

regular discussions about risk, including

the approach to minimising tax risks.

On a quarterly basis, Management

conducts a review and updates the tax

strategy to ensure its relevance as well

as alignment with the company’s wider

purpose and Code of Conduct. The

Supervisory Board regularly discusses

and reviews the Group’s compliance with

its stated tax policy and framework. The

Tax and Accounting Departments, under

the supervision of the Chief Financial

Officer, are responsible for carrying

out the tasks related for tax functions.

Tax risk management is overseen by

the Management Board’s members

and is included in reports to the Audit

Committee. All of the company’s

employees are bound by the Code of

Conduct and Whistleblower Policy is in

place that covers also tax matters.

The Group’s Tax Contribution

The most substantial taxes include the

Corporate Income Tax, value-added tax,

wage tax, social security contributions,

and withholding tax. The taxes and

charges paid remained relatively stable

in the period from FY20 to FY21.

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Corporate income taxes paid

in millions of PLN

2021 2020 2019 2018

Luxembourg 0 0 - -

Poland 180 127 4 0

France 50 54 52 -

Italy 0 0 0 0

United Kingdom 0 0 0 0

Other European countries 0 0.25 1 0

Rest of the world 0 0 0 0

Total 230 181 56 0

Other taxes paid in 2021

in millions of PLN

VAT

Wage tax

and social

security

Total

2021

Total

2020

Luxembourg 0 0.03 0.03 0

Poland 148 103 251 221

France 0 33 33 29

Italy 0 2 2 0.6

United Kingdom 12 12 24 11

Other European countries 0 0 0 0

Rest of the world 0 0 0 0

Total 160 150.3 310.3 261.6

[GRI 207-2]: The information provided in this report is factual and up to date. The source of

the data are the official annual accounts of the Group. This report has been reviewed and

confirmed by the Management and the Audit Committee.

Relationship with tax authorities

GRI [207-3]: InPost Group pays particular

attention to transparency and clarity in

the performance of its obligations. One

of our main objectives is to maintain

proper relations with the tax authorities

based on mutual respect and trust.

In light of the goal of open and

transparent communication regarding

our tax strategy and other tax matters,

we pursue a strong relationship with

local tax authorities, and generally

consider requesting additional opinions

from the competent tax authorities in

ambiguous tax matters, especially in

Poland. We often apply for supporting

opinions or interpretations of tax law

from tax authorities (e.g. various tax

rulings and tax opinions issued by the

respective tax authorities obtained in

2020-2021). We fulfil our mandatory

DAC 6 data reporting obligations in the

EU (e.g. information on tax schemes) in

a regular and timely fashion. In case of

tax-controlling activities or tax audits,

we cooperate fully with the authorities.

Stakeholders

At InPost Group, we strongly believe in

open and transparent communication

with our stakeholders regarding

our tax policy. We highly value the

interests of all our stakeholders and

work to achieve a balance between

our financial interests and social and

environmental responsibilities. We do

not engage in aggressive tax planning

(including limitation of cooperation

with entities located in tax havens).

Among other factors, we consider tax

laws when structuring our commercial

activities and making economic

decisions, with a view to maximise

value on a sustainable basis for our

stakeholders.

We are fully aware of the

importance of not only a

transparent, but also sustainable

and responsible tax approach.

We have an obligation to our

stakeholders individually and as

a company. This means being

open to any public or media

inquiries. Any accusations of tax

evasion or financial misconduct

we have proven to be unfounded

as we abide by the law and

maintain full transparency as our

guiding principles.”

Rafał Brzoska

CEO

Review and Approval

Tax reports are reviewed and

confirmed by the management and

the Audit Committee.

Corporate governance

continued

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

GRI [207-4]: Country-by-country reporting

Country of tax jurisdiction Name of the resident entity Primary activities Number of employees

Luxembourg

InPost S.A.

InPost Technology S.a r.l

Holding company

IT services

323

United Kingdom InPost UK Logistic and courier services 96

France

Integer

France SAS Mondial Relay

Holding company

Logistic and courier services

3,937

Italy Locker InPost Italia S.a r.l Logistic and courier services 38

Poland

Integer.pl S.A.

InPost Sp. z o.o.

Integer Group Services Sp. z o.o.

InPost Paczkomaty Sp. z o.o.

Holding company

Logistics and courier services

3,974

Other European countries - - -

Rest of the world - - -

Total 10 - 8,014

GRI [207-4]: Country-by-country reporting in millions of PLN

Country of tax

jurisdiction

Revenues from

third-party sales

Revenues from

intra-Group

transactions

Profit/loss

before tax*

Tangible assets

other than

cash and cash

equivalents**

Corporate

income tax paid

on a cash basis

Corporate income

tax accrued on

profit/loss

Reasons for the difference

between corporate income

tax accrued on profit/

loss and the tax due if the

statutory tax rate is applied

to profit/loss before tax.

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Luxembourg 0 0 0 0 (95) (5.79) 39,635 18.48 0 0 0 0

United Kingdom 66.27 15.50 0 0.02 (129.36) 209.13 281.86 82.17 0 0 0 0

France 1091.70 0 11.90 0 24.80 (3.82) 3,295.17 9.61 41.1 54 38.90 0

Italy 2.34 2.40 0 0 (23.63) (9.50) 29.94 20.94 0 0 0 0

Poland 3,421.56 2,495.94 2,373.48 1,763.27 1,171.57 596.45 5,762.65 4,173.99 201.86 103.76 219.75 131.18

deferred tax, waived IC loans,

incentive plan related to

shares (2020)

Other European countries 0 0 0 0 (3.42) (0.84) 0.02 2.10 0 0.25 0 0.00 

Rest of the world 0 0 0 0 0 (1) 0 0.07 0 0 0 0 

Total 4,581.88 2,513.84 2,385.36 1,763.29 944.46 785.04 49,004.63 4,307.36 242.99 104.01 258.69 131.18 

Corporate governance

continued

*without IC elimination

**without elimination of IC margin on Fixed Assets and IC receivables

100

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Risk management

GRI [103-2, 102-11, 102-15]: At

InPost Group, we maintain a risk

management system for strategic

markets which includes a set of

processes, organisational measures

and documented rules that are

designed to mitigate risk and ensure

that all significant risks related to

the Group’s activities are properly

measured, reported and controlled, and

that they do not pose a threat to the

stability and continuity of operations.

The risk management system has

been designed to identify, assess and

continuously monitor those risks that

may affect the achievement of strategic,

operational and compliance objectives

across the Group’s business and

organisational units. The objectives of

the risk management system include:

• ongoing and proactive risk

management

• identification of threats and

irregularities

• reduction of risks to acceptable levels

• full exploitation of business

opportunities

• improvement of internal process

efficiency

• improvement of service quality

• effective use of financial, human and

material resources and prevention of

financial losses.

The risk management system has been

fully adopted at the Polish company

level and does not cover companies

outside of Poland. The organisation is

in the process of rolling forward the

Group-wide risk management system

to Mondial Relay which is planned in

2022. The Risk Management Strategy

and the Risk Management Procedure

have been implemented, which define

the risk management framework, the

scope of the system and its regulations.

They also describe our approach to

risk management and the individual

components of the system.

GRI [103-2]: The documents that are an

integral part of the risk management

framework and provide details of the

principles of risk management within

InPost Group include:

• policies and procedures with regard

to ensuring business continuity

• Information Security Policy

• Personal Data Security Policy

• AML and business partner verification

procedures

• Compliance Policy

• documentation of the organisational

structure and the division of

competences and tasks regarding

risk management.

The Group of Companies pursue goals

related to risk management by:

• Risk identification – identification

of potential risk indicators. Risk

identification is a necessary

precondition for correct risk

assessment.

• Risk analysis and assessment –

analysis of identified threats for the

Group’s operations to determine the

risk profile.

• Risk reduction and mitigation –

minimisation of the risk present in

the Group’s operations based on a

system of risk-restricting limits.

• Risk monitoring – early warning

system allowing remedial actions to

be taken.

• Risk reporting – provides cyclical

information to the Group’s

management about the risk profile.

Current risk management activities

include monitoring and reduction

of risk and introduction of a

comprehensive risk knowledge-

management system, including

employee access to all policies

and procedures explaining the risk

management system. The adopted

organisational structure ensures

effective risk management and control

by proper division of tasks. An additional

guarantee of proper risk management

in the company is the appointment

of the position of Internal Auditor,

whose task will be to regularly verify

the correct course of internal processes.

The scope of his duties together with

the full management approach will

be developed and implemented in

2022. Internal Audit will be under the

supervision of the CFO.

Key risks

The report presents the key risks which

may materially affect the Company’s

achievement of its long-term strategic

objectives. The key risks were identified

as those which, in accordance with the

adopted methodology and specified

significance and probability weights,

received an overall rating of medium or

high. It is worth noting that the Group

uses a two-factor risk assessment

system in which the risks are re-

assessed quarterly based on probability

and potential impact. The latest risk

assessment was made and approved at

the end of 2021.

MANAGEMENT BOARD

• Strategic risk management and

risk management system supervision

DIRECTORS

• Verification of significant threat on the strategic and organisational level in their respective areas

EMPLOYEES

• Reporting information about any emerging risks

RISK MANAGEMENT TEAM

• Coordination and compliance assurance of risk

management actions

• Strategic risk register management

RISK COMMITTEE

• Opinion-making advisory body

of the Management Board

• Risk Management Team’s actions

Risk Management System

Risk management responsibilities are divided between the relevant participants

of the Risk Management system:

Corporate governance

continued

101

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Group of risks Risk description Mitigation

Strategic • The Group’s business is dependent on the overall level of

consumer spending, which is affected by general economic

conditions and spending patterns.

• The conflict in Ukraine may change customers’ behaviours

resulting in decreased demand for logistics services.

• Closely monitor trends and use specialist advisors to better understand changing consumer

expectations as to maintain attractive offer.

• InPost Group’s flexibility at adjusting to difficult market situation is high and, combined

with the development of the service portfolio, translates into greater resilience to uncertain

consumer behaviour. InPost has a strong market advantage in Poland and is the first choice

of consumers, so any negative effects of consumer attitudes should affect us the least.

• The Group may face competition from new entrants and

existing competitors on the e-commerce delivery market

in Poland.

• Observe competition in its international markets from various players including Amazon, DPD,

Lockar who have recently announced their intention to roll out their own parcel locker networks.

• Monitor the announcements and actions of its competitors, and potential competitors,

related to existing and new forms of delivery services.

• The growth of the Group’s business depends on the

development and growth of the retail market in the countries

in which the Group is active, especially in the online retail and

e-commerce segment in which it currently operates.

• Continue portfolio diversification: focus on C2X and emerging segments.

• Closely monitor trends and use specialist advisors to better understand changing consumer

expectations to ensure our offer remains attractive.

• A major breach of information security, data regulation or a

major cyber security incident could trigger material service or

operational interruption.

• Continuously improve internal procedures and policies .

• Periodic assessments with external advisors.

• Cybersecurity insurance put in place.

• The Group is subject to laws and regulations. Changes in the

laws and regulations that the Group is subject to could have

a negative effect on its business.

• Implement various policies to enforce compliance with the regulatory framework .

• Monitor changes in laws and regulations in Poland and the foreign markets.

• Work with advisors to properly interpret and respond to the changing regulatory framework.

• Interpretation of Polish laws and regulations may be unclear. • Monitor new laws and regulations and focus on analysing the impact of any new

interpretations or rulings with support by external advisors both in Poland and abroad to be

able to anticipate the impact of any regulatory changes on the entire Group.

• Tax authorities may perform tax audits in all countries in which the

Group operates that could result in additional costs for the Group.

• To be consistent with InPost Group Tax Policy.

• Engage with external advisors to support its interpretation and application of tax law.

Corporate governance

continued

102

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Group of risks Risk description Mitigation

Strategic

continued

• The Group may fail to acquire other businesses as assumed by

its growth strategy or to realise the expected benefits from such

acquisitions and the Group may inadvertently acquire actual or

potential liabilities.

• Continuously evaluate possible acquisition transactions in continental Europe, benefiting

from the ability to identify suitable acquisition candidates and investment opportunities.

• Economic espionage. • Raise the awareness and sense of responsibility of its employees, associates and contractors.

Operational • The Group may not be able to identify or secure suitable new

APM locations in a timely manner or at all; the Group may not

be able to expand its current APM locations and it may not be

able to renew its existing leases for APM locations or negotiate

acceptable lease terms for new APM locations.

• Offer a compelling value proposition to its landlords and plan to continue to cooperate with

its landlords to deploy new APMs to increase the capacity and density of its APM network to

support its growth.

• The Group may face challenges in expanding its operations

outside of Poland.

• Continuous evaluation of possible acquisition targets.

• If the Group cannot retain its management team and other

key employees, it may not be able to manage its operations

successfully and therefore pursue its strategic objectives.

• Incentive programmes aimed at maintaining and motivating key management and personnel.

• ESG oriented culture, diversity and inclusion approach.

• Monitor employees' engagement level, employee net promoter score (eNPS) and turnover rate.

• Disruptions in the operations of the value chain elements

affecting the continuation of business processes and the

provision of key services to customers.

• The Group does not identify the risk of interrupting continuity of

deliveries due to the lack of employees or due to any other reason.

• Strategic supply chain management.

• Increasing transparency of supply chain (in terms of potential risk identification).

• Risk of not meeting obligations imposed by the regulator, risk

of not fulfilling bond conditions. Additionally, risk of raising

insufficient capital from bond issuance resulting in failure to

achieve business objectives.

• Retain clear and open communication with lenders.

• The Group’s systems and those of its third-party service providers,

including data centre facilities, cloud storage services and telecom

service providers, have experienced service interruptions in the past

and may experience service interruptions in the future.

• Developed disaster recovery plans.

• Insurance in place.

• Internal platforms development neutralising dependence on external providers.

Climate-related risks are reported in the Climate change risks (in line with TCFD guidelines) section (page 103)

Corporate governance

continued

103

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Strategic risk management

is one of the key processes

which allows InPost to react to

materialising risks conditions with

the agility required for a market

leader. It is our ambition to create

a risk-aware culture amongst

all employees through regular

training and risk identification

workshops. In 2021, we held 12

such workshops. We continuously

identify and manage risks at

a strategic level and from a

business unit perspective. The

risk management team maintains

the Strategic Risk Register, which

at the end of 2021 included 52

risks, and the Departmental

Risk Registers, where in 2021 we

identified 95 risks in 12 areas. Our

next ambition is to implement risk

and controls management into

the process flows using modern

process management software.”

Magdalena Ociepka

Group Finance Processes

and Risk Director

The culture of risk awareness

We place significant emphasis on

the process of improving employee

risk awareness by involving them

in the assessment of the effective

risk management process in our

organisation. Building a risk awareness

culture is a long-term process,

supported through a system of

training and workshops. The scope of

conducted trainings primarily includes

the principles of risk identification and

assessment and building awareness of

risk management processes. During

workshops, participants are familiarised

with the internal regulations adopted

and the risk assessment methodology

applied in the Group. Until now the

workshops had only been provided to

the Polish companies but there is a plan

for extending them to the entire Group.

The training sessions are attended by

managers and appointed employees

from the respective departments.

In 2021, the Risk Management Team

completed a total of 12 training

cycles for designated areas. During

the workshop sessions, the risks, to

which the department under review

is exposed, were identified and

assessed, lists of control mechanisms

were created and a risk management

strategy was developed.

Climate change risks

(in line with TCFD guidelines)

GRI [201-2]: In order to inform

employees of the identification and

assessment of climate-related risks and

opportunities process, and to comply

with the Recommendations of the

Task-Force on Climate-Related Financial

Disclosures (TCFD), InPost performed a

climate scenario analysis in 2021.

Two climate scenarios were constructed,

representing emission pathways

defined by two different mean global

temperature rises by 2100, which were

compared to global temperatures in

the preindustrial era. Scenarios cover

risks and opportunities relating to

the transition towards a low-carbon

economy, as well as risks associated

with physical impacts of climate

change. For InPost’s operations, this can

include the potential establishment of a

new Emission Trading System (ETS) for

buildings and transport within the EU,

the implementation of higher emission

performance standards for vehicles

and restrictions or bans on sale of new

internal combustion engine vehicles

in the EU and the UK. In regard to the

physical effects of climate change, the

Group has used publicly available data

to analyse its impact in all countries

in which it operates, with focus

placed on Southern Europe and the

Mediterranean region, which are most

vulnerable to mean temperature rise

and extreme heat.

Identification and assessment of climate-

related risks and opportunities for both

scenarios have been conducted by a

team of internal and external experts,

using qualitative risk assessment, and in

consideration of the entire value chain

and all markets the Group operates in.

Climate impacts have been assessed

using a range of techniques, including

brainstorming during climate workshops

held for key management functions.

Three timeframes have been considered:

short-term (until 2025), medium-term

(2030) and long-term (2050). The process

has been fully aligned with InPost’s Risk

Management System.

The results of the analysis indicate

that risks relating to emerging policies

are most material for the Group. This

is especially true for the medium-

term 1.5°C Scenario. Significant

opportunities include transitioning

towards renewable energy sources

and capitalising on customer

preference shifts towards more

sustainable products and services.

1.5°C Scenario

Transition risks and market

opportunities dominate

4°C Scenario

Physical impacts dominate

Globally coordinated effort to reduce

emissions to net zero by 2050

Emission reduction policies limited to the

current policies

Aggressive regulations limiting extraction

and use of fossil fuels

Continued use of fossil fuels and energy-

intensive activities

Transition towards sustainable and

less resource-intensive lifestyles

Unsustainable, energy-intensive

consumption patterns

Rapid decline in costs of key

technologies such as electric vehicles,

hydrogen, photovoltaics

More visible physical effects

of climate change

Key scenario assumptions:

Based on the Intergovernmental Panel on Climate Change (IPCC) scenarios: RCP 2.6 and SS1 and the Nationally

Determined Contributions (NDCs) submitted by the European Union and the United Kingdom.

Based on scenarios by the Intergovernmental Panel on Climate Change (IPCC): RCP 8.5 and SSP5.

Corporate governance

continued

104

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Key climate-related risk and potential impact on Group’s financial results:

Category Risk

Time frame

expected possibility

of potential materialisation

2025 2030 2050

Policy and legal

Increased costs of purchase, rental or financing of courier fleet due to introduction of higher emission performance

standards for cars and LCVs and restrictions on sale of new petrol and diesel vehicles.

  

Increase in operational costs and/or need to adapt own fleet due to restriction of deliveries by combustion vehicles in

urban areas.

  

Increased operating expenditure due to introduction of a carbon tax and/or a cap-and-trade system on the transport

sector (1.5°C scenario only).

 

Increased operating expenditure due to introduction of a carbon tax and/or a cap-and-trade system on buildings

(1.5°C scenario only).

 

Increased capital expenditure due to introduction of Carbon Border Adjustment Mechanism and/or other carbon

leakage regulation (1.5°C scenario only).

 

Technology Decline in availability of low carbon technologies and/or in the ROI of green tech R&D (4°C scenario only).

  

Market Increased operating expenditure due to rising prices of conventional energy and fuels

  

Energy efficiency Decreased operating expenditure due to potential decrease in fuel/energy consumption due to improved efficiency.

  

Energy source Lower green energy costs due to commitment to long-term contracts (PPAs).

  

Products

and services

Increased revenue due to shifts in consumer preferences (1.5°C scenario only).

  

Increased revenue, brand value and staff motivation due to communication of climate commitments and

eco-friendliness of APM and PUDO delivery (1.5°C scenario only).

  

Markets

Improved capital availability, access to green bonds and/or lower cost of capital due to strong climate performance

(1.5°C scenario only).

  

InPost is fully aware of the climate-related risks and opportunities that may have an impact on a growing business. For this reason, management decided to commit to the Science Based

Targets initiative (SBTi) to cement the company’s path towards Paris Agreement ambitions. The purpose of this endeavour is to define precise decarbonisation goals and a roadmap in

order to attain climate neutrality.

Corporate governance

continued

105

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

3. Supply Chain

Supplier Code of Conduct

The main purchasing categories are

APM production components, logistics

equipment and IT. The changes to

the supplier base are related mainly

to acquisition of new suppliers and

optimisation of the supplier base

related to the supply chain crisis in 2021.

The crisis also led to the increase in

price of some purchased goods (steel,

microchips, equipment).

GRI [103-2]: The expansion to new

markets results in the growing

complexity of business relations

and requires integrated value chain

management. With this in mind, we

have identified the need for a unified

Supplier Code of Conduct which would

be adopted by all Group companies.

Work on the document commenced

in 2021 and has included a series

of consultations with the different

countries. The goal is to implement the

Code in all supplier contracts across the

InPost Group. It is our ambition to get

approval of the Code from all suppliers

in 2022. Approval will be mandatory for

any company that wants to cooperate

with InPost Group and will be seen as

a confirmation of compliance with all

requirements set by the Code.

The Code focuses on key aspects which

are essential to the Group:

• Compliance and integrity

• Human rights (including child,

compulsory and forced labour)

• The environment

In case of any concerns and questions

to the provisions of the Code,

suppliers can use the e-mail address

compliance@inpost.eu. It can be also

used to report any cases on non-

compliance. In this case, the anonymity

of the whistle-blower is protected, and

the non-retaliation policy applies.

Business Partner Verification

Procedure

GRI [408-1, 409-1] In 2020, we

introduced a Business Partner

Verification Procedure, according to

which a due diligence check is being

completed with every supplier. Within

the framework of this procedure, we

check the credentials of the supplier

and perform an internet search,

verifying that no illicit practices on the

supplier’s part have been reported.

We do not cooperate with suppliers

whose background check shows any

irregularities. The procedure pertains to

practices such as child labour, modern

Corporate governance

continued

slavery, or any other breaches of

labour law. In 2021, we did not identify

any indications from our suppliers

which would cause any concern as

to the legality of any of our suppliers’

operations and we have not ceased

cooperation with or disciplined any of

our suppliers.

We also conduct a annual audit of

the top 20 suppliers, where we check

whether they have ISO 9001, ISO 14001,

OHSAS 18001 certificates.

Additionally, in the case of cooperation

with temporary employment agencies,

we verify that they do not have

outstanding obligations to the relevant

public administrations.

Poland UK Mondial Relay

2021 2020 2021 2020 2021 2020

Suppliers total 930 563 546 461 2,924 2,483

New suppliers 550 8 85 21 1,536 1,152

Suppliers terminated 18 1 0 0 1,095 1,047

Data excludes PUDO/APM landlords’ contracts

Number of suppliers in the InPost Group

106

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Report of the

Supervisory Board

The functioning of and decision-making

within the Supervisory Board are

governed by the Articles of Association,

the Supervisory Board Rules and

Luxembourg law. The Supervisory Board

has adopted rules governing its decision-

making process and working methods

- Supervisory Board Rules, which have

become effective as of the date of

listing. They describe the duties, tasks,

composition, procedures and decision-

making of the Supervisory Board.

Furthermore, the Supervisory Board has

adopted or approved on 20 January, 2021

the following policies:

• Rules for the Management Board

• Supervisory Board Profile

• Supervisory Board Rotation Schedule

• Charter of the Audit Committee

• Charter of the Selection, Appointment

and Remuneration Committee

• Diversity Policy (amended on

15 November, 2021)

• Bilateral Contracts Policy

All listed documents are available on

the corporate website. We have also

established the Disclosure Committee

which consists of both Supervisory and

Management Board members. The role

of the Disclosure Committee is to ensure

we meet obligations arising from the

status of the public company, especially

to ensure full compliance with the

provisions of Regulation (EU) 596/2014

(EU Market Abuse Regulation, the

“MAR”) and the disclosure requirements

regarding Inside Information within

the meaning thereof in a timely and

accurate manner.

The Executive Committee has been

established to support the members of

the Management Board in the day-to-

day management of the InPost Group’s

business. It consists of the Management

Board and the following members:

Name Member

since

Damian Niewiadomski 2021

Dariusz Lipiński 2021

Marcin Pulchny 2021

Composition

The composition of the Supervisory

Board is as described on page 19 of this

Annual Report.

INDEPENDENCE

The Supervisory Board meets the

requirements of the Code with regards

to independence of the Chair and its

members. However, in deviation of

the Code, two of the members of the

Supervisory Board (Nick Rose and Ranjan

Sen) do not qualify as independent

members of the Supervisory Board

within the meaning of the Code, as they

are appointed upon nomination of

AI Prime and A&R. Page 87 of this Annual

Report contains further information

about deviations from the Code.

Corporate governance

continued

107

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Main Topics in 2021

The Supervisory Board held 12 meetings

during 2021. Almost all Supervisory

Board members attended all meetings.

All meetings (aside for one) were held

in the presence of the Management

Board. Additionally, the members of the

Executive Committee were present at

several Supervisory Board meetings. The

meetings took place electronically due

to COVID-19 restrictions.

The topics that were discussed in

the various meetings included the

IPO in the beginning of 2021 as well

as the financial performance of the

Company (including the international

performance), the Audit Report, the

acquisition of Mondial Relay, the

bond issue, the directors’ succession

programme, the 2022 budget and the

appointment of Mr. Rouse as member

of the Management Board.

In addition, the Supervisory Board

discussed the Group’s strategy and

long-term value creation with the

Management Board, including the

achievements during 2021 and the new

initiatives to accelerate the growth of

the Company.

Furthermore, the Supervisory

Board was kept informed about the

implementation and effectiveness

of the Group’s risk management and

control system. The Audit Committee

discussed the outcome of the risk

management evaluation and the

evaluation of compliance with the code

of conduct and other policies.

Evaluations

The Supervisory Board reviewed and

discussed its own functioning during

the financial year 2021. The assessment

included reviews of the composition of

the Supervisory Board, the Supervisory

Board’s competence and expertise,

the effectiveness of the meetings of

the Supervisory Board, the lessons

learned from this year’s experiences, the

adequacy of the information supplied

to the Supervisory Board, and the

training of the Supervisory Board. The

overall conclusion of the assessment

was positive, with certain areas of

improvement on the effectiveness of the

Supervisory Board identified, such as

improved timeliness for pre-circulation

of Board papers, and the need to have

greater discussion of succession planning,

receiving meeting materials in advance of

the meetings and receiving extra training

and information in certain areas.

General Meetings

The Annual General Meeting took place

on 19 May, 2021. The meeting discussed

the annual results of the Integer.pl

group of companies for 2020 as well

as the appointment of Cristina Berta-

Jones as member of the Supervisory

Board. The meeting approved the

appointment of Ms. Berta-Jones for

a period of four years, ending at the

Annual General Meeting 2025.

The Annual General Meeting for 2022

shall be held on 19 May, 2022. Among

other issues, the meeting will discuss

the annual results for InPost S.A.

and its subsidiaries for 2021 and the

reappointment of PWC as auditor of the

Group for 2022.

Committee Activities

in 2021

The Supervisory Board has two

committees: the Audit Committee

and the Selection, Appointment

and Remuneration Committee.

The Committees generate

detailed information and prepare

recommendations relating to their

specific areas, while the Supervisory

Board retains overall responsibility.

Corporate governance

continued

108

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

and have been audited by the external

auditor. The Audit Committee discussed

the financial statements in detail

with the Management Board and the

Supervisory Board and the audit of the

financial statements with the external

auditor. The Supervisory Board believes

that the 2021 financial statements meet

all the requirements for correctness and

transparency and has approved them.

The Management Board will present the

2021 financial statements and this Annual

Report at the Annual General Meeting

2022. The Supervisory Board recommends

that Shareholders adopt the 2021

financial statements and discharges the

members of the Management Board and

Supervisory Board for their management

and supervision for the financial year

2021. In line with the dividend policy

of the Company, the Management

Board proposes to allocate the profit

to the reserves.

Remuneration Report

Foreword from the chair of the

remuneration committee

On behalf of the Remuneration

Committee, I am pleased to report on

the Committees’ activities in 2021.

Looking back, 2021 was a year of

significant milestones for the InPost

Group. A major step in the history

of the Company was its IPO on

Euronext Amsterdam in January 2021.

Furthermore, the Company successfully

issued bonds of EUR 490 million in

June 2021 and a further senior secured

bond in July 2021 for an amount of PLN

500 million (EUR 109 million). On 1 July,

2021, the Company successfully closed

the acquisition of Mondial Relay, which

demonstrates the commitment of the

Company and its leadership team to

lay the foundation for the acceleration

of its pan European strategy to redefine

the last-mile delivery experience across

Europe. The results of 2021 meant that

performance for bonus purpose was

close to the on-target levels set at the

beginning of the year resulting in bonus

pay-outs to the CEO and CFO of around

one times base salary.

The Remuneration Committee

met three times in 2021. The topics

that were discussed were (i) the

implementation of the Company’s Long

Term and Short-Term Incentives post

IPO; (ii) target setting for 2021 bonus

purposes; (iii) 2021 LTIP awards; and (iv)

reviews of performance of the members

of the Management Board and the rest

of the executive team.

Michael Rouse, CEO of the International

businesses, was appointed to the

Management Board in September 2021.

Tax Policy, and the risk management

evaluation. In addition, the Audit

Committee covered at length the post-

acquisition reporting of Mondial Relay

plus resulting adequate staffing of the

Finance team. The Chair was actively

involved in the hiring of the new internal

auditor, who has started in March 2022.

Report of the Selection,

Appointment and Remuneration

Committee

The Selection, Appointment and

Remuneration Committee met three

times in 2021. The CEO and the HR

Manager participated in a part of these

meetings. The Committee discussed,

among other things, the remuneration

proposals for the Executive Team, the

Senior Managers and international

businesses in relation to the

acquisition of Mondial Relay and for

UK & Italy, the 2021 LTIP allocation and

mechanism and (potential) Mondial

Relay LTIP awards. The outcome of

these discussions is presented in the

Remuneration Report.

Financial Statements

and Dividend

No dividend was distributed in 2021.

The 2021 financial statements were

prepared by the Management Board

Report of the Audit Committee:

The newly installed Audit Committee

started work immediately after the

January listing in 2021. Its first task

was to develop a fully-fledged annual

calendar and making sure the CFO,

the Finance team the team of auditors

and the NED’s developed a working

relationship despite the challenges

posed by covid (travel restrictions and

local lockdowns). In the second part

of 2021 a number of physical informal

meetings could be held with the CFO,

the Finance team and the auditors,

which further consolidated a good

working spirit.

The Audit Committee formally met

four times in 2021. The meetings were

held in attendance of the CFO and the

external auditor. The Audit Committee

also met with the external auditor once,

without the CFO present. In addition,

the Chair met several times during the

year separately with both the CFO and

auditor in an informal setting.

The Audit Committee discussed the

financial statements for 2020, the

procedure of the AC year planning, the

interim financial results of 2021 and

the corresponding interim audit 2021

results, the evaluation and compliance

of InPost’s Code of Conduct, InPost’s

Corporate governance

continued

109

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

The Remuneration Committee will

continue to regularly assess InPost’s

remuneration policy to seek to

ensure alignment of the interests

of management, shareholders,

and other stakeholders.

Nick Rose

Chair of the Remuneration Committee

Remuneration Policy

The members of the Management

Board and the Supervisory Board

are entitled to remuneration

based on the principles as set out

in the Remuneration Policy. The

Remuneration Policy for the Company

was adopted by the General Meeting

on 20 January, 2021. The Remuneration

Policy will be further described in this

chapter.

The Remuneration Policy aims to

provide a remuneration structure

that will allow the Group to attract,

reward, and retain highly qualified

Management Board and Supervisory

Board and provide and motivate them

with a balanced and competitive

remuneration that is focused on

superior and sustainable financial

results and is aligned with the long-

term strategy of the Group.

The remuneration of the members

of the Management Board and the

Supervisory Board is determined in

aggregate by the General Meeting, with

due observance of the Remuneration

Policy as adopted by the General

Meeting. The Supervisory Board (on the

advice of the Selection, Appointment

and Remuneration Committee),

within the limits of the aggregate

remuneration approved by the General

Meeting and with due observance of

the Remuneration Policy, shall resolve

on the individual remuneration of

the members of the Management

Board and the Supervisory Board.

The remuneration of the members

of the Executive Committee, who are

not members of the Management

Board, shall be determined by the

Management Board, subject to approval

of the Supervisory Board.

The Remuneration Policy does not

meet all the requirements of the Code,

as the policy requires members of the

Management Board to hold any share

acquired pursuant to their annual

deferred bonus for three years rather

than five years after they have been

awarded. Furthermore, the Company

does not comply with best practice

provision 3.3.2, which provides that

Supervisory Board members may

not be awarded remuneration in the

form of shares. The Company deviates

from this best practice provision as

certain of the Supervisory Board

members may receive up to 25% of

their annual remuneration in Shares.

The remuneration of the Supervisory

Board members, including the share

component, is not dependent on the

results of the Company or the Group.

Remuneration of the

Management Board in 2021

The remuneration of the members of

the Management Board is made up

of fixed and variable elements. The

Supervisory Board has determined

the weighting of fixed and variable

elements and the balance between

short and long-term awards in such

a way that fixed pay is moderate

compared to other comparable listed

companies, and the proportion of the

total remuneration that is performance-

related for delivering superior

performance is market-leading in

comparison to other comparable listed

companies. This reflects the Group’s

highly performance-oriented and

entrepreneurial culture, the objectives

of growth and expansion and the aim to

foster alignment of the interests of the

members of the Management Board

with the Company’s shareholders.

Corporate governance

continued

110

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Pursuant to the Remuneration Policy,

the remuneration of the members of

the Management Board consists of:

• annual base salary;

• annual and deferred bonus plan;

• long-term incentive plan; and

• pension and fringe benefits.

The Management Board members

may have service agreements and/

or employment agreements with the

Company and/or any other member of

the Group. These shall be agreements

for an indefinite period and shall

contain severance provisions which

provide for a severance payment of

50% of annual salary payable under

such agreement. The agreements

may contain a notice period of up

to 6 months and non-compete

undertakings which if breached

may result in penalties of up to 9

months annual salary in addition to

the requirement to pay back any and

severance payments.

Annual base salary

The annual base salary of the members

of the Management Board aims to

reflect the responsibility and scope

of their role, considering their level of

seniority and experience. Considering

the Group’s remuneration philosophy

to have a remuneration package for

the members of the Management

Board that is more heavily weighted

to performance-based elements, the

annual base salary is targeted to be

around the lower quartile of executives

with similar roles in comparable

companies.

The annual base salary will be reviewed

by the Supervisory Board on an annual

basis, or when there is a change in

position or responsibility, taking into

account individual performance and

degree of individual responsibility, the

general operational performance of

the Group, as well as the economic

environment and sustainable

development of the Group.

Annual and deferred bonus plan

Members of the Management Board

are eligible to receive an annual bonus

subject to the achievement of certain

pre-determined financial, strategic, and

operational performance measures.

The annual bonus is set at one times

base salary for meeting on target

performance with the opportunity to

earn up to two times base salary for

truly exceptional performance. Unless

the Supervisory Board determines

otherwise, at least 50% of the annual

bonus will be deferred into Shares for a

period of three years, meaning that the

member may forfeit his or her rights

to those Shares if he or she leaves the

Company before the end of that period.

Any shares awarded to the members of

the Management Board as part of their

annual bonus must be held by them for

at least three years from the award date.

The 2021 bonus targets and their relative

weighting were set in Q1 2021. The

largest part (60%) of the annual bonus

is related to financial targets. The choice

and weight of these financial targets

may depend on the specific business

objectives for any given year. For 2021,

the financial target for the members of

the Management Board related to the

realisation of a certain level of Group

EBITDA. In addition to the financial

targets, members of the Management

Board have specific personal objectives

which represent 40% of their total

bonus opportunity. For 2021 each

Management Board member had 4

specific personal objectives. As these

targets are commercially sensitive, they

cannot be further specified.

As mentioned in the foreword, the

realisation of the financial target, Group

EBITDA, was close to the on-target level

set at the beginning of the year, leading

to a bonus pay-out for the financial

Corporate governance

continued

111

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

additional benefits, such as expatriate

benefits (housing and travel allowance),

relocation allowances and reasonable

tax advice or support.

Long-term incentive plan

Pursuant to the terms of the long-term

incentive plan (the “LTIP”), the members

of the Management Board (as well

as certain other senior managers) are

eligible to receive awards for shares,

which shall normally vest after a three-

year performance period, subject to the

achievement of certain pre-determined

financial performance metrics and

continuing their employment. The

maximum value of Shares over which

a member of the Management Board

may be eligible to receive an LTIP award

on an annual basis will be equal to

200% of the sum of the annual base

salary and the prior year’s annual bonus

including any portion of the bonus

that is deferred in shares. The award of

LTIP shares in any year shall not exceed

a maximum of 600% of the annual

base salary. Any shares awarded to the

member of the Management Board

under the LTIP must be held by them

for at least two years from the vesting

date.

Corporate governance

continued

target of 59.4% of the annual base salary

of our CEO and our CFO.

Our CEO Mr. Rafal Brzoska realised his

non-financial goals on target, leading

to a bonus pay out of 40% of his annual

base salary. For our CFO, Mr. Adam

Aleksandrowicz, the realisation of his

non-financial targets resulted in a bonus

pay out of 29% of his annual base salary.

For our CEO International, Mr. Michael

Rouse, the bonus targets were set

before he joined the Management

Board in September 2021 and hence his

maximum bonus pay-out amounted to

40% of his annual base salary. Mr. Rouse

over-delivered on three of his non-

financial goals and realised an on-target

performance for the remaining one

target. Also, for him the realisation of

the financial target was close to the on-

target level, set at the beginning of the

year. In total this led to a 26% pay out

of his annual base salary as bonus for

the realisation of his financial and non-

financial targets.

As per the remuneration policy, 50%

of the bonus of the Management

Board members will be paid out in

shares of the Company. In deviation

of the remuneration policy, the

Supervisory Board decided not to

impose the condition that these shares

will necessarily be forfeited if the

Management Board members were to

leave the service of the Company within

3 years. The reason for this deviation of

the remuneration policy is that after

careful review it is not perceived to be

consistent with the rationale behind

InPost’s remuneration policy, which

provides for moderate fixed salary and

market leading variable income in

case of excellence performance, that

STI-components could be forfeited in all

circumstances of leaving the Company.

The Supervisory Board will re-examine

rhis as part of a broader review of the

Remunaration Policy in 2022 with any

amendments to be proposed at the

2023 AGM.

Pension and fringe benefits

At the date of this report, the members

of the Management Board do not

participate in any personal pension

schemes. However, pursuant to the

Remuneration Policy, new members

of the Management Board may be

given the opportunity to participate in a

personal pension scheme. Furthermore,

the members of the Management

Board are eligible for certain benefits,

such as private healthcare, life

insurance, a mobile phone, a company

car, business expense allowance or

allowances in lieu of such benefits.

The Supervisory Board may offer other

112

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Claw back

The variable remuneration of the

members of the Management Board

may be reduced or members of the

Management Board may be obliged

to repay (a part of) their variable

remuneration of the Company if certain

circumstances apply. The Supervisory

Board will have the discretionary power

to adjust the value downwards or

upwards of any variable remuneration

component conditionally awarded to

a member of the Management Board

in a previous financial year which

would, in the opinion of the Supervisory

Board, produce an unfair result due to

extraordinary circumstances during

the period in which the predetermined

performance criteria have been or

should have been applied. In addition,

the Company may recover from a

member of the Management Board

any variable remuneration awarded on

the basis of incorrect financial or other

data (claw back). The Supervisory Board

may furthermore adjust the variable

remuneration (to the extent that it

is subject to reaching certain targets

and the occurrence of certain events)

to an appropriate level if payment of

the variable remuneration were to

be unacceptable according to the

requirements of reasonableness and

fairness.

Corporate governance

continued

The share price for the award shares was EUR 17.08 and was based on the average share

price of 60 days preceding the date of the grant of the awards.

Overview of total remuneration for the Management Board in 2021 (in PLN m)

Name Position

Remuneration

type 2021 2020

Rafał Brzoska Chief Executive

Officer

Fixed 2.6 1.1

Variable 2.6 0.8

LTIP granted 16.2 –

Adam

Aleksandrowicz

Chief Financial

Officer

Fixed 1.8 1.1

Variable 1.5 0.8

LTIP granted 10.8 –

Michael Rouse* Chief Executive

Officer

International

Fixed 1.0 –

Variable 0.2 –

LTiP granted 7.5 –

* Please note that as Michael Rouse only became Board member in September 2021 his annual fixed and

variable remuneration has been shown proportionately to the time his services were for the Board.

In 2021 following the IPO, a conditional

grant of performance shares was made

to the executives of the Company. The

level of the vesting of the performance

shares is dependent on the financial

performance of the Company in the

three financial years 2021-2023, and

specifically on the level of Group EBITDA

growth in those years.

In 2021, the conditional awards for the

Management Board are as follows:

Participant

Number

of shares

granted

Number

of shares

vested

in 2021

Rafal Brzoska 207,753 0

Adam

Aleksandrowicz 138,502 0

Michael Rouse* 94,262 0

* These shares were awarded before Michael

Rouse joined the Management Board of

the Company

113

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

REMUNERATION OF THE

SUPERVISORY BOARD

IN 2021

The Remuneration Policy with respect

to the members of the Supervisory

Board has been designed to ensure

that the Group attracts, retains, and

appropriately compensates a diverse

and highly experienced group of

members of the Supervisory Board.

The remuneration of the members of

the Supervisory Board reflects the time

spent and responsibilities of the roles.

The Chair receives an annual fee of EUR

220,000. The other members of the

Supervisory Board, excluding Mr. Rose

and Mr. Sen, will each receive an annual

fee of EUR 75,000 for their services.

The chair of each of the Committees

receives an additional annual fee of

EUR 25,000. This excludes Mr. Rose,

who acts as Chair of the Remuneration

Committee.

The fees of each of the members of

the Supervisory Board will be paid in

cash although the Supervisory Board

may decide to pay up to 25% of the

annual fee in Shares. Members of the

Supervisory Board are also eligible to

receive reimbursement of reasonable

expenses incurred undertaking their

duties, including any applicable taxes.

For 2021, none of the Supervisory Board

members were paid in shares.

The total remuneration for the

Supervisory Board members in 2021

was the following (in PLN m):

Corporate governance

continued

[GRI 405-2]:

Name Position Remuneration

type

2021 2020

Mark Robertshaw

Chairperson of the

Supervisory Board

Fixed 1,0 –

Variable – –

Nick Rose

Supervisory Board

member

Fixed – –

Variable – –

Mike Roth

Supervisory Board

member

Fixed 0,3 0,3

Variable – –

Renjan Sen

Supervisory Board

member

Fixed – –

Variable – –

Ralf Huep

Supervisory Board

member

Fixed 0,3 –

Variable – –

Marieke Bax

Supervisory Board

member

Fixed 0,5 –

Variable – –

Cristina Berta

Jones

Supervisory Board

member

Fixed 0,3 –

Variable – –

Pay Ratio

The Code requires Dutch stock-listed

companies to consider and disclose

pay ratios between the CEO and other

employees within the Company.

As is commonly understood, such

ratios are specific to a company’s

industry, geographical footprint, and

organisation model. InPost has a diverse

geographical footprint as well as a

variety of pay within the Company as

InPost’s workforce has a large variety

of different skill sets. For companies in

other industries, this will be different.

Finally, pay ratios can be volatile over

time, as they may vary with exchange

rate movements and are largely

dependent on the Company’s annual

performance since that performance

impacts the total annual remuneration

of the CEO more than of most of the

other employees given the greater

variable component in the CEO’s

remuneration.

The 2021 pay ratio, calculated based

on the recommendations of the Dutch

Governance Committee, is 33 for the

CEO. The pay ratio is based on annual

fixed and variable remuneration

and does not include any unvested

LTIP awards.

114

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statementsCorporate governance About the report

Corporate governance

continued

Share Information

Share listing

The Company’s shares have been

listed on Euronext Amsterdam since

27 January, 2021.

Share capital

The Company’s issued share capital

amounts to EUR 5,000,000 divided into

500,000,000 shares of EUR 0.01 each

(the “shares”). The shares have been

created under the laws of Luxembourg.

All shares have been fully paid up and

are registered. At year-end 2021, the

total number of issued ordinary shares

was 500,000,000.

Major shareholdings

The Luxembourg Transparency Law, the

Luxembourg Transparency Regulation

and Dutch Financial Supervision Act

require investors who hold a share

interest or voting interest exceeding

(or falling below) certain thresholds to

(inter alia) notify their interest with the

Commission de Surveillance du Secteur

Financier (“CSSF”) in Luxembourg,

the Company and the Authority for

the Financial Markets (“AFM”) in the

Netherlands.

31 notifications with regard to

transactions for substantial holdings

and gross short positions have been

made to the AFM and CSSF in 2021.

Management and Supervisory Board

owned shares

A&R Investments 300,000

Ralf Huep 100,000

Michael Rouse 249,434

Mark Robertshaw 3,271,595

Damian Niewiadomski 20,800

TOTAL: 3,941,829

Insider Trading Policy

The Market Abuse Regulation and

Luxembourg Market Abuse Law set out

important market abuse rules relevant

for investors. To promote compliance

with the relevant obligations and

restrictions under the applicable

securities laws, the Management Board

has adopted the Insider Trading Policy

on 20 January, 2021, which has been

amended per 15 November, 2021.

This policy contains specific rules for

employees of the Group, incidental

insiders, permanent insiders and

managers of the Group.

Dividend Policy

There are no fixed dates on which a

shareholder is entitled to receive a

dividend. The Company may declare

and pay dividends in accordance

with the 1915 Law. Dividends may

be declared by the General Meeting

upon approval of the annual financial

statements for the immediately

preceding financial year. The payment

of dividend, if any, and the amounts and

timing of these dividends, will depend

on several factors, including future

profits, financial conditions, general

economic and business conditions

and future prospects and such other

factors as the Management Board

may seem relevant, as well as other

legal and regulatory requirements. The

Company will consider the opportunity

to pay a dividend in the medium term

while maintaining financial flexibility to

invest in its growth both organically and

inorganically.

Financial

Statements

116

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Responsibility statement

InPost S.A.

70, route d'Esch

L-1470 Luxembourg

Grand Duchy of Luxembourg

R.C.S. Luxembourg: B248669

Responsibility statement

The Management Board and Supervisory Board confirm that, to the best of

their knowledge:

These Consolidated Financial Statements of InPost Group for the period of 12 months

ended on 31 December 2021 prepared in accordance with the International Financial

Reporting Standards as adopted by the European Union and Standalone Financial

Statements prepared in accordance with Generally Accepted Accounting Principles in

Luxembourg, give a true and fair view of the assets, liabilities, financial position, and profit

or loss of the Company and the undertakings included in the consolidation taken as a

whole, and that the Management report includes a fair review of the development and

performance of the business and the position of the Company and the undertakings

included in the consolidation taken as a whole, together with a description of the principal

risks and uncertainties that they face.

Approved by the boards on its behalf by:

Mark Robertshaw Rafał Brzoska

Chairperson of the Supervisory Board Chief Executive Officer

117

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Audit report

To the Shareholders of

InPost S.A.

Report on the audit of the consolidated financial statements

Our opinion

In our opinion, the accompanying consolidated financial statements give a true and

fair view of the consolidated financial position of InPost S.A. (the “Company”) and its

subsidiaries (the “Group”) as at 31 December 2021, and of its consolidated financial

performance and its consolidated cash flows for the year then ended in accordance with

International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Our opinion is consistent with our additional report to the Audit Committee or equivalent.

What we have audited

The Group’s consolidated financial statements comprise:

• the consolidated statement of financial position as at 31 December 2021;

• the consolidated statement of profit and loss and other comprehensive income for the

year then ended;

• the consolidated cash flow statement for the year then ended;

• the consolidated statement of changes in equity for the year then ended; and

• the notes to the consolidated financial statements, which include a summary of

significant accounting policies.

Basis for opinion

We conducted our audit in accordance with the EU Regulation No 537/2014, the Law of

23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards

on Auditing (ISAs) as adopted for Luxembourg by the “Commission de Surveillance du

Secteur Financier” (CSSF). Our responsibilities under the EU Regulation No 537/2014,

the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further

described in the “Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the

consolidated financial statements” section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

We are independent of the Group in accordance with the International Code of Ethics

for Professional Accountants, including International Independence Standards, issued

by the International Ethics Standards Board for Accountants (IESBA Code) as adopted

for Luxembourg by the CSSF together with the ethical requirements that are relevant

to our audit of the consolidated financial statements. We have fulfilled our other ethical

responsibilities under those ethical requirements.

To the best of our knowledge and belief, we declare that we have not provided non-audit

services that are prohibited under Article 5(1) of the EU Regulation No 537/2014.

The non-audit services that we have provided to the Company and its controlled

undertakings, if applicable, for the year then ended, are disclosed in Note 41 to the

consolidated financial statements.

118

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Audit report continued

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the consolidated financial statements of the current period.

These matters were addressed in the context of our audit of the consolidated financial

statements as a whole, and in forming our opinion thereon, and we do not provide a

separate opinion on these matters.

Key audit matter

How our audit addressed

the key audit matter

Risk of fraud in revenue recognition

Revenue is one of the key figures reflecting

the results of operations and market share,

which is of the key importance for the

Group’s development.

Therefore there is a risk of misstatement of

the consolidated financial statements as a

result of intentional overestimate of revenues

in the consolidated financial statements.

Since the Group’s revenue is composed of

high volumes of very low value individual

transactions we have narrowed the risk of

intentional misstatements to the recognition

of fictitious sales.

The disclosures related to revenue, including

the accounting policies are included in Note

12 of the consolidated financial statements.

Our testing procedures included in particular:

• understanding the internal control system

and analysing the principles adopted by

the Group in terms of recognizing revenue

from contracts with customers;

• conducting, on a selected sample, tests of

selected internal controls, important for

determining the occurrence of revenue

transactions and the correct value of

revenues from contracts with customers;

• understanding and validating types

of documents used for accounting of

revenues and identification of types of

journal entries outside standard operating

activity of the Group;

• testing of the selected nonstandard

manual journal entries of revenue

accounts that have impacted revenue for

the year by understanding the rationale

for these journals.

Accounting for business combination -

acquisition of Mondial Relay

As explained in Note 9.3 to the consolidated

financial statements, on 1 July 2021 the

Group acquired 100% of the share capital of

Mondial Relay. The purchase price amounted

to 2,319.9 million PLN.

Our testing procedures included in particular:

• evaluation of management’s assessment

that the acquisition of Mondial Relay

should be accounted for as a business

combination and determined that it was

appropriately performed in accordance

with the definition set out in IFRS 3;

Key audit matter

How our audit addressed

the key audit matter

The business combination is accounted for

according to IFRS 3 Business combinations.

As part of the purchase price allocation

process management determined that the

fair value of net identifiable assets acquired

is 885.6 million PLN with 885.5 million

PLN relating to intangible assets that were

recognised from the business combination

and goodwill in the amount of 1,434,3 million

PLN.

This is a significant focus area for our audit

due to the significance of management's

judgements and estimates involved in

accounting for this acquisition. The key

judgement related to the assessment of

identifiable assets and liabilities fair values

and the allocation of the purchase price to

the assets and liabilities acquired.

• assessment of the Group’s analysis of the

date of obtaining control;

• assessment of the appropriateness of the

identifiable assets acquired and liabilities

assumed at the acquisition date by

reviewing the clauses laid out in the Share

Purchase Agreement and Due Diligence

reports performed by professional Tax,

Legal and Financial advisors to the Group;

• verification of management’s procedure

for determining the fair value of the

identifiable net asset; in particular, we

tested whether method of measurement

and key assumptions (i.e. discount rates, )

used by the management are appropriate

and reasonable. We also assessed how

management has addressed estimation

uncertainty in making the accounting

estimate;

• verification of the carrying value of the

assets and liabilities of Mondial Relay at

the date of the acquisition;

• evaluation of the competency and

objectivity of the external expert engaged

by the management to allocate purchase

price to identifiable assets acquired and

liabilities assumed; we also involved our

internal valuation experts to support us in

our audit work;

• analysis of the key assumptions adopted

by the management regarding the annual

goodwill and brand impairment tests;

• evaluation of the adequacy and

completeness of the disclosures.

119

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Audit report continued

Other information

The Board of Directors is responsible for the other information. The other information

comprises the information stated in the consolidated management report and the

Corporate Governance Statement but does not include the consolidated financial

statements and our audit report thereon.

Our opinion on the consolidated financial statements does not cover the other information

and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is

to read the other information identified above and, in doing so, consider whether the other

information is materially inconsistent with the consolidated financial statements or our

knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based

on the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of the Board of Directors and those charged with governance for

the consolidated financial statements

The Board of Directors is responsible for the preparation and fair presentation of the

consolidated financial statements in accordance with IFRSs as adopted by the European

Union, and for such internal control as the Board of Directors determines is necessary to

enable the preparation of consolidated financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible

for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going concern basis of accounting unless

the Board of Directors either intends to liquidate the Group or to cease operations, or has

no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial

reporting process.

The Board of Directors is responsible for presenting and marking up the consolidated

financial statements in compliance with the requirements set out in the Delegated

Regulation 2019/815 on European Single Electronic Format (ESEF Regulation).

Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the

consolidated financial statements

The objectives of our audit are to obtain reasonable assurance about whether the

consolidated financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an audit report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with the EU Regulation No 537/2014, the Law of 23 July 2016

and with ISAs as adopted for Luxembourg by the CSSF will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected

to influence the economic decisions of users taken on the basis of these consolidated

financial statements.

As part of an audit in accordance with the EU Regulation No 537/2014, the Law of 23 July

2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional

judgment and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the consolidated financial

statements, whether due to fraud or error, design and perform audit procedures

responsive to those risks, and obtain audit evidence that is sufficient and appropriate

to provide a basis for our opinion. The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control;

• obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the Group’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Board of Directors;

• conclude on the appropriateness of the Board of Directors’ use of the going concern

basis of accounting and, based on the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that may cast significant doubt on

the Group’s ability to continue as a going concern. If we conclude that a material

uncertainty exists, we are required to draw attention in our audit report to the

related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence

obtained up to the date of our audit report. However, future events or conditions may

cause the Group to cease to continue as a going concern;

• evaluate the overall presentation, structure and content of the consolidated financial

statements, including the disclosures, and whether the consolidated financial

statements represent the underlying transactions and events in a manner that achieves

fair presentation;

120

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Audit report continued

• obtain sufficient appropriate audit evidence regarding the financial information of

the entities and business activities within the Group to express an opinion on the

consolidated financial statements. We are responsible for the direction, supervision and

performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters,

the planned scope and timing of the audit and significant audit findings, including any

significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied

with relevant ethical requirements regarding independence, and communicate to

them all relationships and other matters that may reasonably be thought to bear on our

independence, and where applicable, actions taken to eliminate threats or safeguards

applied.

From the matters communicated with those charged with governance, we determine

those matters that were of most significance in the audit of the consolidated financial

statements of the current period and are therefore the key audit matters. We describe

these matters in our audit report unless law or regulation precludes public disclosure

about the matter.

We assess whether the consolidated financial statements have been prepared, in all

material respects, in compliance with the requirements laid down in the ESEF Regulation.

Report on other legal and regulatory requirements

The consolidated management report is consistent with the consolidated financial

statements and has been prepared in accordance with applicable legal requirements.

The Corporate Governance Statement is included in the consolidated management report.

The information required by Article 68ter Paragraph (1) Letters c) and d) of the Law of

19 December 2002 on the commercial and companies register and on the accounting

records and annual accounts of undertakings, as amended, is consistent with the

consolidated financial statements and has been prepared in accordance with applicable

legal requirements.

We have been appointed as “Réviseur d’Entreprises Agréé” by the Board of Directors

on 8 July 2021 and the duration of our uninterrupted engagement, including previous

renewals and reappointments, is 1 year.

We have checked the compliance of the consolidated financial statements of the Group as

at 31 December 2021 with relevant statutory requirements set out in the ESEF Regulation

that are applicable to consolidated financial statements.

For the Group it relates to the requirement that:

• the consolidated financial statements are prepared in a valid XHTML format;

• the XBRL markup of the consolidated financial statements uses the core taxonomy and

the common rules on markups specified in the ESEF Regulation.

In our opinion, the consolidated financial statements of the Group as at 31 December 2021,

identified as Standalone_and_Consolidated_Annual_Report_of_InPost S.A._Group.zip,

have been prepared, in all material respects, in compliance with the requirements laid

down in the ESEF Regulation.

PricewaterhouseCoopers, Société coopérative

Represented by

Brieuc Malherbe

Luxembourg, 30 March, 2022

121

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Consolidated statement of profit or loss

and other comprehensive income

Note

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Continued operations

Revenue

12.1

4, 581.9 2 ,5 13. 8

Other operating income 20. 3 14. 3

Depreciation and amortisation 12.3 60 9.7 356 .1

Raw materials and consumables 89. 2 43 .5

External services 2 , 4 0 7. 6 1,228.1

Taxes and charges 9.8 2 .1

Payroll 12.4 493 .1 20 0. 5

Social security and other benefits 12.4 100 .4 44.8

Other expenses 30. 2 12 .5

Cost of goods and materials sold 14. 3 10. 2

Other operating expenses 15 .1 6.7

Impairment gain/(loss) on trade and

other receivables

24 6. 4 (3.9)

Total operating expenses 3,7 75 .8 1,90 0.6

Operating profit 826.4 6 2 7. 5

Finance income 12.2 16 .1 0.1

Finance costs 12.2 129. 7 164 .5

Profit before tax 7 12 .8 4 63.1

Income tax expense 13 221. 5 111 .6

Profit from continuing operations 491 .3 351. 5

Profit (loss) from discontinued operations 0. 3 (1. 3)

Net profit 491.6 350. 2

For explanation regarding comparative period please refer to note 2.2.

Note

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Other comprehensive income

Exchange differences from the translation of

foreign operations, net of tax – Item that may

be reclassified to profit or loss

(3 1.0) (0 .4)

Other comprehensive income, net of tax (31.0) (0. 4)

Total comprehensive income

460.6 349. 8

Net profit (loss) attributable to owners:

From continued operations: 491 . 3 351 .5

From discontinued operations: 0. 3 (1 . 3)

Total comprehensive income attributable

to owners:

From continued operations: 45 4. 6 357.3

From discontinued operations: 6.0 (7. 5)

Basic/diluted earnings per share (in PLN)

0. 98 0.69

Basic/diluted earnings per share (in PLN) –

Continuing operations

0. 98 0.69

Basic/diluted earnings per share (in PLN) –

Discontinued operations

15 0.00 0.0 0

The above consolidated financial statements should be read in conjunction with the accompanying notes.

The Net profit for the period and Total comprehensive income is attributable to the owners only.

122

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

ASSETS Note

Balance

as at

31-12-2021

Balance

as at

31-12-2020

Non-current assets 5, 831 .0 1,82 5. 5

Goodwill 9.3 1,434. 3 –

Intangible assets 19 1,036.6 1 41 . 5

Property, plant and equipment 20 3,1 10.0 1, 56 5.1

Other receivables 31.4 6.0

Deferred tax assets 13.3 157 .8 112.1

Other assets 23 60. 9 0.8

Current assets 1,46 1.9 655. 3

Inventory 10.9 5.7

Trade and other receivables 24 9 2 7. 1 43 4 .7

Income tax asset 3 .7 0. 3

Other assets 23 2 7. 0 70. 4

Cash and cash equivalents 25 493 . 2 14 4. 2

TOTAL ASSETS 7, 2 9 2 . 9 2 ,4 80.8

EQUITY AND LIABILITIES Note

Balance

as at

31-12-2021

Balance

as at

31-12-2020

Equity

Equity attributable to owners of InPost (6. 9) 638.1

Share capital 17 2 2 .7 0.1

Share premium 35, 122.4 –

Share capital and share premium of

combined entities

– 686 .8

Retained earnings/(accumulated losses) 435 .6 (56 .0)

Reserves 2.2 (3 5 , 5 8 7. 6) 7. 2

For explanation regarding comparative period please refer to note 2.2.

EQUITY AND LIABILITIES Note

Balance

as at

31-12-2021

Balance

as at

31-12-2020

Non-controlling interests

– –

Non-controlling interests – –

Total equity (6 .9) 638.1

Liabilities

Loans and borrowings 26 4,545.8 743 . 4

Employee benefits and other provisions 30 33. 2 14.0

Government grants 1.2 9. 2

Deferred tax liability 13.3 2 78. 6 35 .0

Other financial liabilities 27 835 .1 30 4.0

Total non-current liabilities 5, 693. 9 1,105.6

Trade payables and other payables 33 785 .7 292 . 3

Loans and borrowings 26 194.4 2 3 .7

Government grants – 4. 2

Current tax liabilities 43 .7 22.4

Employee benefits and other provisions 30 103. 2 42 . 2

Other financial liabilities 27 3 57 . 7 2 32 .7

Other liabilities 32 121. 2 119.6

Total current liabilities 1,605. 9 7 3 7. 1

Total liabilities 7 ,299.8 1 , 84 2 .7

TOTAL EQUITY AND LIABILITIES 7 , 29 2 .9 2 ,48 0.8

The above consolidated financial statements should be read in conjunction with the accompanying notes.

Consolidated statement of financial position

123

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Note

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Cash flows from operating activities

Net profit 491.6 3 50. 2

Adjustments: 1,0 15.6 6 41. 8

Income tax expense 13 221. 5 111.6

Financial (cost)/income 34 8 4 .7 173. 7

Gain/(loss) on sale of property, plant and

equipment

(2 .6) (7. 6)

Depreciation and amortisation 12.3 6 09.7 35 6.1

Impairment losses 7. 1 (2 .1)

Grants 2 .7 –

Group settled share-based payments 31 92 . 5 10.1

Changes in working capital: (14. 2) (73 .1)

Trade and other receivables 34 (166. 2) (228 .0)

Inventories (5.1) (3. 5)

Other assets 34 (6 .5) (2 .5)

Trade payables and other payables 34 164 .2 45. 6

Employee benefits, provisions and

contract liabilities

34 (2 .1) 25.9

Other liabilities 1.5 89.4

Cash generated from operating activities 1, 493.0 9 18.9

Interest and commissions paid (150.0) (74 . 7)

Income tax paid (243 .0) (104.0)

Net cash from operating activities 1,10 0.0 740. 2

For explanation regarding comparative period please refer to note 2.2.

Note

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Cash flows from investing activities

Purchase of property, plant and

equipment

(8 49.6) (4 83 .7)

Purchase of intangible assets (86 .0) (46 .8)

Proceeds from finance leases – 3.9

Acquisition of a subsidiary, net of cash

acquired

9.3 (2, 260.7) –

Net cash from investing activities (3,1 96. 3) (526.6)

Cash flows from financing activities

Proceeds from loans and borrowings 28 1,949 .8 84.9

Repayment of the principal portion of

loans and borrowings

28 (658. 9) (8.8)

Proceeds from bonds 9.4 2 ,7 15. 2 –

Payment of principal portion of the lease

liability

28 (302.0) (204 . 2)

Payment to shareholders (1, 2 38 .1) (73. 1)

Government grants return (18 .7) –

Proceeds from the capital increases – 1 8.0

Net cash from financing activities 2 , 4 4 7. 3 (183. 2)

Net increase/(decrease) in cash and cash

equivalents

351 .0 30. 4

Cash and cash equivalents at 1 January 144 .2 113 .0

Effect of movements in exchange rates on

cash held

(2 .0) 0. 8

Cash and cash equivalents at 31 December 493 . 2 14 4. 2

The above consolidated financial statements should be read in conjunction with the accompanying notes.

Consolidated statement of cash flows

124

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Reserves

capital

premium

capital

and share

premium of

combined

entities

Translation

reserve

Reserve capital

(reorganisation)

Other

reserves

Retained

earnings/

(accumulated

losses)

Attributable

toowners

ofthe

Company

Attributable

tonon-

controlling

interests Total equity

Balance as at 01-01-2020

– – 963 .1 (4 .2) – 1.7 (57 1.0) 389 .5 (0.2) 389.3

Net profit – – – – – – 350. 2 350.2 – 350.2

Other comprehensive income forthe

period

– – – (0. 4) – – – (0. 4) – (0. 4)

Total comprehensive income forthe

period

– – – (0 . 4) – – 350. 2 3 49. 8 – 3 49.8

Redemption of shares – – (8 9.2) – – – – (89. 2) – (89. 2)

Redemption of non-controlling interests – – – – – – (0 .2) (0. 2) 0. 2 –

Resolution on payment of dividends – – – – – – (40.0) (40.0) – (40.0)

Share-based payment (equity-settled) – – – – – 10.1 – 10 .1 – 10.1

Issue of shares of InPost S.A. 0.1 – – – – – – 0 .1 – 0.1

Issue of shares of InPost Technology – – 1 7. 9 – – – – 1 7. 9 – 1 7. 9

Distribution of profit from previous years – – 120. 3 – – – (120. 3) – – –

Coverage of losses from previous years – – (325. 3) – – – 325 . 3 – – –

Balance as at 31-12-2020

0.1 – 686.8 (4 .6) – 11. 8 (5 6.0) 638.1 – 638.1

The above consolidated financial statements should be read in conjunction with the accompanying notes.

Translation reserve includes exchange differences from the translation of foreign operations.

Other reserves include equity-settled share-based payment programme reserve.

For explanation regarding comparative period please refer to note 2.2.

Consolidated statement of changes in equity

125

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Reserves

capital

premium

capital

and share

premium of

combined

entities

Translation

reserve

Reserve capital

(reorganisation)

Other

reserves

Retained

earnings/

(accumulated

losses)

Attributable

toowners

ofthe

Company

Attributable

tonon-

controlling

interests Total equity

Balance as at 01-01-2021

0.1 – 686.8 (4.6) – 11. 8 (5 6.0) 638.1 – 638.1

Net profit – – – – – – 49 1.6 491 .6 – 49 1. 6

Other comprehensive income for

the period

– – – (31 .0) – – – (31.0) – (31.0)

Total comprehensive income

for the period

– – – (31.0) – – 491.6 460.6 – 460.6

Increase in the share capital of InPost S.A.

due to the contribution in kind

(Refer to

note 2.2)

22 .6 36, 360.5 (686 .8) – (35, 656. 3) – – 40.0 – 40.0

Redemption from reserve capital

(Refer

to note 2.2)

– (1, 2 38 .1) – – – – – (1 , 23 8.1) – (1, 2 38 .1)

Share-based payment (equity-settled)

(Refer to note 31)

– – – – – 92. 5 – 92 .5 – 92 . 5

Balance as at 31-12-2021 2 2 .7 35 ,122 .4 – (35.6) (35,656.3) 104. 3 435.6 (6. 9) – (6 .9)

The above consolidated financial statements should be read in conjunction with the accompanying notes.

Translation reserve includes exchange differences from the translation of foreign operations.

Other reserves include equity-settled share-based payment programme reserve.

For explanation regarding comparative period please refer to note 2.2.

The Group reorganisation which took place at the beginning of 2021 impacted the current Group structure significantly, for details of Group history please refer to note 2.2. On 26 January, 2021, the general meeting of shareholders adopted a

resolution to increase the share capital to EUR 5,000,000. To cover the value of new shares, the shareholders contributed to the company the shares of Integer.pl SA and the shares of InPost Technology S.à r.l. On 26 January, 2021, AI Prime Bidco

S.à r.l., a related party of the Company, contributed 100% of the shares held respectively in Integer.pl S.A. and InPost Technology S.à r.l. to InPost S.A. for a total amount of 7,995,747,974 EUR.

Paid to shareholder AI Prime Bidco S.à r.l. please see note 35for the explanation of cashflows.

Consolidated statement of changes in equity continued

126

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

1. Statement of compliance

The accompanying consolidated statements of financial position, as of 31 December,

2021, as well as the related consolidated statements of comprehensive income, changes

in equity, and cash flows for the financial year ended 31 December, 2021, with the related

notes (collectively, the “consolidated financial statements”) have been prepared in

accordance with International Financial Reporting Standards as adopted by European

Union (hereinafter referred to “IFRS”).

The IFRS consist of standards and interpretations approved by the International

Accounting Standards Board (“IASB”) and the International Financial Reporting

Interpretations Committee.

The Management Board of InPost S.A. declares that according to its best judgement these

consolidated financial statements have been prepared in accordance with accounting

principles currently in force, and gives a true, and fair view of the consolidated financial

position of the InPost S.A. Group as at 31 December, 2021 and of its consolidated financial

performance and consolidated cash flows for the year then ended.

As described in the note 2.2 below, InPost S.A. has not previously published the

consolidated financial statements prepared under IFRS and due to reorganisation, InPost

S.A. consolidated financial statements are continuation of previous financial statements of

Integer.pl S.A. Group and InPost Technology S.à r.l.

Significant accounting policies applied by the Group as the basis for the preparation of

these consolidated financial statements are described in note 6.

These policies have been consistently applied to all periods presented in these

consolidated financial statements.

2. Additional information notes and explanations

2.1. General information about the InPost Group and its Parent

InPost S.A. (hereinafter referred to as the “Company”) was incorporated on 6 November,

2020, and is organised under the laws of Luxembourg as a “société anonyme” for an

unlimited period and is registered with the Luxembourg Register of Commerce and

Companies under n° B 248669.

On 1 March, 2021, the registered office of the Company was transferred from 2-4 rue Beck,

L-1222 Luxembourg to 70 route d’Esch, L-1470 Luxembourg.

InPost S.A. is the parent company in the InPost Group. The functional currency of

InPost S.A. is Euro (EUR). Polish zloty (PLN) has been used as the presentation currency

ofthese consolidated financial statements and is the functional currency for the Group’s

subsidiaries with the highest share in the Group’s revenue as indicated in note 2.5.

Until 26 January, 2021, the sole owner of the parent company was AI Prime & Cy S.C.A.

based in Luxemburg.

On 27 January, 2021, as a result of the IPO, InPost S.A. shares were listed on the Amsterdam

stock exchange EURONEXT. Since that date, InPost S.A. is a publicly listed company

without an immediate parent (holding) company.

2.2. Establishment of the Group and reorganisation

InPost S.A. was established on 6 November, 2020, as a vehicle for the acquisition of Integer.

pl S.A. Group, through a newly established holding company. The share capital of InPost

S.A. was increased on 26 January, 2021. The increase in share capital and a share premium

was covered by AI Prime Bidco S.à r.l. through the contribution of the 100% shares of

Integer.pl S.A. and InPost Technology S.à r.l.

Integer.pl S.A. was the parent of Integer.pl S.A. Group and prepared the consolidated

financial statements of Integer.pl S.A. Group in accordance with IFRS until the financial

year ended 31 December, 2020. As a result of the abovementioned transaction, InPost

Group (hereinafter referred to as the “Group” or “InPost Group”) was created.

The transaction of the acquisition by InPost S.A. of 100% interest in Integer.pl S.A. (the parent

of Integer.pl S.A. Group) is considered a reorganisation of the Group due to the fact that:

• the new parent entity was added to an existing group and there is no change in the

substance of the reporting entity

• the assets and liabilities of the new Group and the original Group are the same

immediately before and after the reorganisation, and

• the owners of the original parent before the reorganisation have the same absolute and

relative interests in the net assets of the original Group and the new Group immediately

before and after the reorganisation.

The reorganisation was accounted for by incorporating into the consolidated financial

statements ofInPost S.A. the assets and liabilities of the pre-existing Group at their carrying

values from the consolidated financial statements of the pre-existing Group prepared in

accordance with IFRS. Any difference between the cost of the transaction and the carrying

value of the net assets of the pre-existing Group was a reorganisation difference which was

recorded directly in equity – in Reserve capital (reorganisation) and the amount was equal

to PLN 35,696.3 m (negative).

Notes and explanations

127

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

2. Additional information notes and explanations continued

InPost Technology S.à r.l. was incorporated on 22 July, 2020, by AI Prime Bidco S.à r.l. –

the shareholder of Integer.pl S.A. On the same day InPost Technology S.à r.l. acquired

from Integer Group Services Sp.zo.o. (the entity operating within Integer.pl S.A. Group)

the business being the development and maintenance unit (OPE). Therefore, in the

consolidated financial statements of InPost S.A. the assets and liabilities of InPost

Technology S.à r.l. were incorporated at their carrying values from the consolidated

financial statements of the pre-existing Group prepared in accordance with IFRS, as

described above. This transaction has no impact on the value of assets and liabilities

reported in these consolidated financial statements.

Due to the fact that the underlying group over which InPost S.A. was established as a

Parent, existed as at January 1, 2021, (i.e. intermediate parent company was established

in November 2020 and acquired Integer.pl S.A. on January 26, 2021); these consolidated

financial statements of InPost Group cover full period of 12 months from January 1, 2021, to

December 31, 2021, although the reorganisation occurred on January 26, 2021.

Following the above approach, these consolidated financial statements cover the financial

results of InPost S.A., InPost Technology S.à r.l. and Integer.pl S.A. and all its subsidiaries for

the period of 12 months of2021, as if InPost Group had existed since January 1, 2021.

Due to changes in the composition of the Group described above the comparative

information in these consolidated financial statements comprises of consolidated

financial information of Integer.pl S.A. Group for the period of 12 months period ended on

December 31, 2020, financial information of InPost S.A. for the period between November

6, 2020, and December 31, 2020, and InPost Technology S.à r.l. financial information for the

period between June 22, 2020, and December 31, 2020.

As a part of the reorganisation, the Company issued 496 900 000 shares that were valued

based on the fair value of contributions made (fair value of shares in Integer.pl S.A. and

InPost Technology S.à r.l.) and as a result recognised an increase in share capital in the

amount of PLN 22.6 m and increase in share premium in the amount of PLN 36,360.5 m.

The difference between the fair value of newly issued shares upon contribution and the

carrying value of share capital and share premium already existing (i.e. PLN 686.8 m) was

recorded in the amount of PLN 35,696.3 m (negative) as a reserve capital (reorganisation).

Concurrently with a reorganisation, the Company repaid to the existing shareholders the

amount ofPLN 1,238.1 m which was treated as a redemption and recorded as a reduction

of the share premium established on reorganisation.

a) Group Structure immediately before the reorganisation:

AI PRIME

(Luxembourg)

Subco S.à r l.

AI PRIME &

Cy S.C.A.

Management*

PZU, FT

and A&R

AI PRIME

(Luxembourg)

Bidco S.à r l.

InPost S.A.

InPost Technology

S.à r l.

Integer pl SA

* Management shares had been granted as part of the MIP programme and have not been vested yet (they were

partially vested as of IPO date) – please refer to the details described in note 31.

128

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

2. Additional information notes and explanations continued

b) Group Structure immediately after the reorganisation:

AI PRIME

(Luxembourg)

Subco S.à r l.

AI PRIME &

Cy S.C.A.

Management*

PZU, FT

and A&R

AI PRIME

(Luxembourg)

Bidco S.à r l.

InPost S.A.

InPost Technology

S.à r l.

Integer pl SA

* Management shares had been granted as part of the MIP programme described in note 31.

Concurrently with reorganisation and redemption of shares, the Parent company:

a. incurred indebtedness (further described in note 18).

b. listed its share in the Amsterdam stock exchange (shares in IPO were sold only by the

existing shareholders and the company did not issue any new shares).

As a result of the IPO, InPost S.A. has been listed on the Amsterdam stock exchange since

27 January, 2021.

Moreover, as a consequence of the reorganisation described above, it was agreed that

the entire profit for the year 2019 in the amount of PLN 40 m will be allocated to Reserve

capital instead of the planned dividend payment to former owner AI Prime Bidco S.à.r.l.

The resolution of the General Meeting of Shareholders dated 30 September, 2020,

approving the payment of the dividend from the profit of the year 2019 in the amount of

PLN 40 m was formally changed on 19 May, 2021, by the General Meeting of Shareholders

of Integer.pl S.A. As a result dividend liabilities towards previous sole shareholder of

Integer.pl S.A., i.e. AI Prime Bidco S.à r.l. were derecognised and impacted the

reorganisation reserve recognised in equity.

2.3. Information about the parent entity and global ultimate parent

As at 31 December, 2020 and until 26 January, 2021, the direct parent company of Integer.

pl S.A. was AI Prime Bidco S.à r.l.

The global ultimate parent of the Group in which the Company operates was Advent

International Corporation based in Boston (USA) as at 31 December, 2020 and 26 January,

2021.

As at the date of this report, the Company has no ultimate controlling shareholder. As

of the date of these consolidated financial statements, the shareholders were: Advent

International Corporation (46.02%), A&R Investments LTD (12.42%), The Capital Group

Companies Inc (5.18%), GIC Private Limited Singapore (5.01%) and Others (31.37%).

129

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

2. Additional information notes and explanations continued

2.4. Group’s operations

InPost Group offers complex logistic solutions mostly for customers from the e-commerce

industry. The core business of the InPost Group includes the following operating activities:

automatic parcel machine services, courier services, production and sale of automatic

parcel machines, research and development works, internet portals, data processing,

website management (hosting), and holding activities including management of the

InPost Group.

Composition of the Management Board

As at 31 December, 2021, and the date of issuance of these consolidated financial

statements the composition of the Management Board of InPost was asfollows:

• Rafał Brzoska – President of the Management Board

• Adam Aleksandrowicz – Vice President of the Management Board

• Michael Rouse – Vice President of the Management Board.

On 10 September, 2021 Michael Rouse was appointed a member of the Management

Board for a period of four years.

Composition of the Supervisory Board

As at 31 December, 2021 and the date of issuance of these consolidated financial statements

the composition of the Supervisory Board of InPost was asfollows:

• Mark Robertshaw – Chairperson, member of the Supervisory Board

• Mike Roth – member of the Supervisory Board

• Nick Rose – member of the Supervisory Board

• Ranjan Sen – member of the Supervisory Board

• Ralf Huep – member of the Supervisory Board

• Marieke Bax – member of the Supervisory Board

• Cristina Berta Jones – member of the Supervisory Board

On 15 January, 2021, by resolution of the General Meeting of Shareholders, Ranjan Sen and

Marieke Bax were appointed to the Supervisory Board.

On 19 May, 2021, Cristina Berta Jones was appointed to the Supervisory Board.

130

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

2. Additional information notes and explanations continued

2.5. Composition of the Group

These consolidated financial statements of the InPost Group include the financial information of the Parent, which is InPost S.A., and of three direct subsidiaries and nine indirectly controlled

subsidiaries of InPost S.A. The list of the Group entities is presented in the below table.

Company name Country

Functional

currency

Shareholders

as at 31-12-2021

Interest in the share

capital as at

31-12-2021

Interest in the share

capital as at

31-12-2020

Direct subsidiaries

1 Integer.pl S.A. Poland PLN InPost S.A. 100% 100%

2 InPost Technology Poland PLN InPost S.A. 100% 100%

3 Integer France SAS France EUR InPost S.A. 100% 0%

Indirect subsidiaries

4 Mondial Relay SAS France EUR Integer France SAS 100% 0%

5 InPost Sp. z o.o. Poland PLN Integer Group Services Sp. z o.o. 100% 100%

6 InPost France SAS in liquidation France EUR InPost Paczkomaty Sp. z o.o. 0%

100%

7 Locker InPost Italia Srl Italy EUR InPost Paczkomaty Sp. z o.o. 100% 100%

8 Granatana Limited Cyprus EUR InPost Paczkomaty Sp. z o.o. 100% 100%

9 Giverty Holding Limited Cyprus EUR Granatana Limited 100% 100%

10 InPost UK Limited United Kingdom GBP InPost Paczkomaty Sp. z o.o. 100% 100%

11 InPost Paczkomaty Sp. z o.o. Poland PLN Integer.pl S.A. 100% 100%

12 Integer Group Services Sp. z o.o. Poland PLN

Integer.pl S.A. 38.35% 38.35%

InPost Paczkomaty Sp. z o.o. 61.65% 61.65%

13 M.P.S.L. Modern Postal Services Ltd Cyprus EUR Integer.pl S.A. 100% 100%

InPost do Brasil logistica e locacao de

equipamentos LTDA

Brazil BRL Integer.pl S.A. 0% 99%

15 InPost Malaysia Malaysia RM InPost Paczkomaty Sp. z o.o. 0% 100%

Affiliates

16 Easypack Plus Self-Storage LLC United Arab Emirates AED 50% - InPost Paczkomaty Sp. z o.o. 0% 50%

For explanation regarding comparative period please refer to note 2.2.

InPost France SAS has been deconsolidated in these consolidated financial statements as a result of loss of control.

131

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

2. Additional information notes and explanations continued

The following changes have taken place during the reporting period in the structure of

InPost Group:

• On 15 August, 2021, Easy Pack Plus Self Storage L.L.C. was liquidated and removed from

the register of entrepreneurs.

• On 1 July, 2021, acquisition of Mondial Relay was completed (transaction described in

note 9.3).

• On 29 March, 2021, InPost do Brasil logistica e locacao de equipamentos LTD was

liquidated andremoved from the register of entrepreneurs.

• On 12 March, 2021, InPost Malaysia was liquidated and removed from the register

ofentrepreneurs.

• On 10 March, 2021, InPost France SAS went into liquidation and is supervised by

a state appointed liquidator and has been deconsolidated in these consolidated

financial statements as a result of loss of control. As InPost France SAS is classified

as discontinued operations since 2018, the result of consolidation is also classified as

discontinued operations.

• On 2 March, 2021, Integer France SAS was acquired by InPost S.A. for a value of EUR1,

net assets of the acquired company amounted to EUR 1.

2.6. Authorisation of the Consolidated financial statements

These consolidated financial statements were authorised for issue by the Management

Board on 30 March, 2022.

3. New and amended standards and interpretations

The new and amended standards and interpretations that are issued, but not yet effective,

up to the date of issuance of the Group’s financial statements are disclosed below.

The Group intends to adopt these new and amended standards and interpretations, if

applicable, when they become effective.

• IFRS 14 Regulatory Deferral Accounts (issued on 30 January, 2014) – The European

Commission has decided not to launch the endorsement process of this interim

standard and to wait for the final standard– not yet endorsed by EU at the date of

approval of these financial statements – effective for financial years beginning on or after

1 January, 2016;

• Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets Between an Investor

and its Associate or Joint Venture (issued on 11 September, 2014) – the endorsement

process of these Amendments has been postponed by EU – the effective date was

deferred indefinitely by IASB;

• IFRS 17 Insurance Contracts (issued on 18 May, 2017) including Amendments to IFRS 17

(issued on 25 June, 2020) – effective for financial years beginning on or after 1 January,

2023;

• Amendments to IAS 1: Classification of Liabilities as Current or Non-current and

Classification of Liabilities as Current or Non-current – Deferral of Effective Date (issued

on 23January, 2020 and 15 July, 2020, respectively) – not yet endorsed by EU at the date

of approval of thesefinancial statements – effective for financial years beginning on or

after 1 January, 2023;

• Amendments to IFRS 3: Reference to the Conceptual Framework (issued on 14 May,

2020) – effective for financial years beginning on or after 1 January, 2022;

• Amendments to IAS 16: Proceeds before Intended Use (issued on 14 May, 2020) –

effective for financial years beginning on or after 1 January, 2022;

• Amendments to IAS 37: Onerous Contracts – Cost of Fulfilling a Contract (issued on

14 May, 2020) - effective for financial years beginning on or after 1 January, 2022;

• Annual Improvements to IFRS Standards 2018–2020 (issued on 14 May, 2020) – effective

for financial years beginning on or after 1 January, 2022;

• Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting policies

(issued on 12 February, 2021) – effective for financial years beginning on or after 1 January,

2023;

• Amendments to IAS 8: Definition of Accounting Estimates (issued on 12 February, 2021) –

effective for financial years beginning on or after 1 January, 2023;

• Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from

a Single Transaction (issued on 7 May, 2021) – not yet endorsed by EU at the date of

approval of these financial statements – effective for financial years beginning on or after

1 January, 2023;

• Amendments to IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative

Information (issued on 9 December, 2021) – not yet endorsed by EU at the date of

approval of these financial statements – effective for financial years beginning on or after

1 January, 2023.

In the opinion of the Company, the above changes will not have a significant impact on

the financial statements of the Group.

132

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

3. New and amended standards and interpretations

continued

Standards and interpretations approved by IASB and have come into a force for the

financial periods starting from 1 January 2021:

• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark

Reform – Phase 2 (issued on 27 August 2020) – effective since 1 January 2021;

• Amendments to IFRS 4 Insurance Contracts – deferral of IFRS 19 (issued on 25 June

2020) – effective since 1 January 2021;

• Amendments to IFRS 16 Covid-19- Related Rent Concessions beyond 30 June 2021

(issued on 31 March 2021) – effective since 1 April 2021.

The above changes didn’t have a significant impact on the financial statements of

theGroup.

4. Foreign currency

4.1. Foreign operations treatment

Polish zloty (PLN) has been used as the presentation currency for these consolidated

financial statements.

The functional currency of each company is the currency used in the primary economic

environment where an entity operates, in all cases the same as the currency of its country

of residence.

Exchange differences from the translation of foreign operations are recognised in other

comprehensive income as a translation reserve, except to the extent that the translation

difference is attributable to NCI.

The Group have granted long-term loans that are receivable from foreign operations.

Where the Group assessed that settlement of long-term loans granted to foreign

operations is neither planned nor likely to occur in the foreseeable future, they are

accounted as part of the Group’s net investment in that foreign operation. When a foreign

operation is disposed of entirely or partially, the cumulative amount in the translation

reserve related to that foreign operation is reclassified from equity to profit or loss as part

of gain or loss on disposal. If the Group disposes of a part of its interest in a subsidiary but

retains control, then the relevant proportion of the cumulative amount is reattributed

toNCI.

4.2. Reporting foreign currency transactions

Foreign currency transactions at initial recognition are translated into respective functional

currencies of Group companies at the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the

functional currency at the closing rate at the reporting date. Forentities whose functional

currency is PLN the closing rate is the average exchange rate published for the currency

by the NBP as at that date. Non-monetary items that are measured at historical cost are

translated using the exchange rate at the transaction date.

Foreign currency differences are recognised in profit or loss and presented within finance

costs/income, except for exchange differences from the translation of foreignoperations.

Following exchange rates were used at the reporting dates:

31-12-2021 31-12-2020

Exchange rate at the reporting date – for assets and liabilities

EUR 4.5994 4.6148

GBP 5.4846 5.1327

Average exchange rate for the period – for P&L and cash flows

EUR 4.5775 4.4742

GBP 5.3308 5.0240

133

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

5. Discontinued operations

A discontinued operation is a component of the Group’s operations, for which cash

flows and operations can be distinguished from the rest of the Group’s operations and

additionally:

• it constitutes a separate major line of business or geographical area of activity,

• is a part of a single, coordinated plan to dispose of a separate major line of business or

geographical areas of operations,

• is a subsidiary acquired exclusively with a view to resale.

An operation is classified as discontinued at the earlier of disposal or when it meets the

criteria to be classified as held for sale. The results of discontinued operations are presented

separately from the results of continued operations in all periods presented in the

consolidated financial statements.

If an operation is classified as discontinued, the prior statement of comprehensive income

is represented as if the operation had been discontinued from the start of the earliest

period presented.

6. Basis for preparation

The Group prepares its financial statements in accordance with the International Financial

Reporting Standards as adopted by the EU and related interpretations.

The consolidated financial statements have been prepared on a historical cost basis,

except for trade receivables subject to non-recourse factoring arrangements and derivative

financial instruments that have been measured at fair value.

These consolidated financial statements were prepared under the assumption that the

InPost Group will continue to operate as a going concern in the foreseeable future. As at

the date of the approval of the consolidated financial statements there is no evidence

indicating that the Group will not be able to continue its business activities on a going

concern basis.

7. Basis for consolidation

These consolidated financial statements comprise the financial statements of InPost S.A.

and its subsidiaries.

Subsidiaries are entities controlled by the Group. The InPost S.A. Group controls an entity

when it is exposed to, or has rights to, variable returns from its involvement with the entity

and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial

statements from the date on which control commences until the date on which control

ceases.

Intra-Group balances and transactions, and any unrealised income and expenses (except

for foreign currency transaction gains or losses) arising from intra-Group transactions, are

eliminated. Unrealised losses are also eliminated, unless there is evidence of impairment of

the transferred asset.

The accounting principles applied by the subsidiaries have been changed when necessary

to align them with the policies adopted by the Group.

Changes in the Integer.pl S.A. Group interest in a subsidiary that does not result in a loss of

control are accounted for as equity transactions with shareholders.

Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary,

any non-controlling interests and other components of equity related to the subsidiary.

Any gain or loss arising as a result of the loss of control is recognised in profit or loss.

134

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies

8.1. Business combinations and goodwill

The Group determines that it has acquired a business when the acquired set of activities

and assets include an input and a substantive process that together significantly

contribute to the ability to create outputs. The acquired process is considered substantive

if it is critical to the ability to continue producing outputs, and the inputs acquired include

an organised workforce with the necessary skills, knowledge, or experience to perform that

process or it significantly contributes to theability to continue producing outputs and is

considered unique or scarce or cannot be replaced without significant cost, effort, or delay

in the ability to continue producing outputs.

Business combinations are accounted for using the acquisition method. The cost of

an acquisition is measured as the aggregate of the consideration transferred, which is

measured at acquisition date fair value, and the amount of any non-controlling interests

in the acquiree. For each business combination, the Group elects whether to measure the

non-controlling interests in the acquiree at fair value or at the proportionate share of the

acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and

included in administrative expenses.

Any contingent consideration to be transferred by the acquirer is recognised at fair value

at the acquisition date. Contingent consideration classified as equity is not remeasured

and its subsequent settlement is accounted for within equity. Contingent consideration

classified as an asset or liability that is a financial instrument and within the scope of IFRS 9

Financial Instruments, is measured at fair value with the changes in fair value recognised in

the statement of profit or loss in accordance with IFRS 9. Another contingent consideration

that is not within the scope of IFRS 9 is measured at fair value at each reporting date with

changes in fair value recognised in profit orloss.

Goodwill is initially measured at cost (being the excess of the aggregate of the

consideration transferred and the amount recognised for non-controlling interests and

any previous interest held over the net identifiable assets acquired and liabilities assumed).

If the fair value of the net assets acquired is in excess of the aggregate consideration

transferred, the Group re-assesses whether it has correctly identified all of the assets

acquired and all of the liabilities assumed and reviews the procedures used to measure

the amounts to be recognised at the acquisition date. If the reassessment still results in an

excess of the fair value of net assets acquired over the aggregate consideration transferred,

then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment

losses. For the purpose of impairment testing, goodwill acquired in a business combination

is, from the acquisition date, allocated to each of the Group’s cash-generating units (CGU)

that are expected to benefit from the combination, irrespective of whether other assets or

liabilities of the acquiree are assigned to those units. When the recoverable amount of the

CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses

relating to goodwill cannot be reversed in futureperiods.

Where goodwill has been allocated to a CGU and part of the operation within that unit

is disposed of, the goodwill associated with the disposed operation is included in the

carrying amount of the operation when determining the gain or loss on disposal. Goodwill

disposed in these circumstances is measured based on the relative values of the disposed

operation and the portion of the cash-generating unitretained.

8.2. Intangible assets

According to IAS 38 an intangible asset is defined as an identifiable non-monetary asset

without physical substance.

The Group identifies the following categories of intangible assets:

• development costs,

• software externally acquired,

• customer relationships,

• acquired brands and trademarks,

• intangible assets in progress.

135

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Development costs relate to internally generated assets: IT projects and capitalised

expenditure incurred on product design of so-called refrigerated locker machines and

banking parcel machines and development of business processes for providing courier

and logistics services.

The software includes externally acquired licenses and software used in the Group’s

business operations.

An intangible asset, whether purchased or self-created is recognised if, and only if it is

probable that the future economic benefits that are attributable to the asset will flow to

the Group and the cost of the asset can be measured reliably.

If the above recognition criteria are not met and the item does not meet the definition

of an intangible asset, the expenditure on this item should be recognised as an expense

when it is incurred.

Initial recognition

Intangible assets are initially recognised at cost.

For intangible assets acquired separately, the initial cost comprises:

• its purchase price, including import duties and non-refundable purchase taxes, after

deducting trade discounts and rebates,

• any directly attributable cost of preparing the asset for its intended use:

– costs of employee benefits,

– professional fees,

– costs of testing.

The following expenditures are not part of the cost of an intangible asset: costs of

introducing a new product or service (including costs of advertising and promotional

activities), staff training and administration and other general overhead costs.

For intangible assets acquired in a business combination, the cost of that intangible asset is

its fair value at the acquisition date.

For intangible assets internally generated, the cost comprises all directly attributable costs

necessary to create, produce, and prepare the asset to be capable of operating, incurred

from the date when the intangible asset first meets the recognition criteria.

The reinstatement of expenditure previously recognised as an expense is prohibited.

Internally generated brands, goodwill, customer lists and items similar in substance shall

not be recognised as intangible assets.

Measurement subsequent to acquisition

The Group is using the cost model for all the intangible assets. Subsequent to initial

recognition, intangible assets are measured at cost less any accumulated amortisation and

any accumulated impairment losses.

Any gain or loss on the disposal of an item of intangible assets is recognised in profit or loss

and presented within other operating income/expenses.

Key judgements, assumptions, and estimation uncertainties

Amortisation

The useful lives of intangible assets are assessed as either finite or indefinite.

The Group assessed that the useful lives of all its intangible assets, except for some of

acquired trademarks, are finite, therefore they are amortised. Amortisation begins when

the asset is available for use, i.e. it is in the location and condition necessary to be capable of

operating as intended by the Group. Such intangible asset is reclassified from intangibles

in progress to the appropriate category of intangibles and amortisation is commenced.

Amortisation is calculated to write off the cost of intangible assets less their estimated

residual values using the straight-line method over their estimated useful lives, and is

recognised in profit or loss. For major items of intangibles the Group assessed that their

residual values are zero.

Intangible assets with indefinite useful lives (“Mondial Relay” brand) are not amortised, but

are tested for impairment annually, either individually or at the cash-generating unit level.

The assessment of indefinite life is reviewed annually to determine whether the indefinite

life continues to be supportable. If not, the change in useful life from indefinite to finite is

made on a prospective basis.

136

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Amortisation methods, useful lives and residual values are reviewed at each reporting date

and adjusted if appropriate. The effect of a change in the abovementioned estimates shall

be recognised prospectively.

The estimated useful lives of intangibles assets for all presented periods are as follows:

Type: Period:

Development costs 5 – 10 years

Trademarks 30 years

Software 2 – 10 years

Customer relations 8 years

Impairment losses

The Group assesses at the end of each reporting period whether there is any indication

that an asset with a finite useful life may be impaired or whether there is any indication

that an impairment loss recognised in prior periods for an asset may no longer exist or

may have decreased. If any such indication exists, the recoverable amount of the asset is

estimated. In assessing whether there is any indication that an asset may be impaired, the

Group consider internal and external sources of information.

The recoverable amount is determined for individual assets or cash-generating

units(“CGU”).

Development costs

The basic purpose for conducting research activities is to gain new knowledge, but the

Group is not able at this phase to demonstrate that an intangible asset exists and will

generate future economic benefits. Expenditure on research activities is recognised in

profit or loss as incurred.

Development costs are the application of research findings or other knowledge to a plan or

design for the production of new or substantially improved products and processes before

they are introduced and commercially used in the Group’s operatingactivities.

An intangible asset arising from development is recognised only if all of the following

criteria are met and the Group is able to demonstrate that:

• the product or process is technically and commercially feasible so that it will be

available for use or sale,

• the Group intends and has sufficient resources (technical, financial and other) to

complete the works and use or sell the product,

• the Group is able to demonstrate how the intangible asset will generate future

economic benefits,

• the expenditure attributable to the intangible asset under development can be

measured reliably.

Development costs are measured initially at cost, which is the sum of expenditure incurred

from the date when the intangible asset first meets the general recognition criteria for

intangible assets and the above-listed criteria for recognition of an intangible asset arising

from development. Subsequent to initial recognition, development costs are measured at

cost less accumulated amortisation and any accumulated impairment losses. During the

period of development, the asset is tested for impairment annually.

Recoverability of development costs

Development costs include mainly software and key IT systems and can be generated

internally. Due to the relatively specific nature of the Group’s operations, most intangible

assets are developed internally, including software. The software is developed in

cooperation with external IT solution providers. The Group is constantly looking for new

solutions to increase the efficiency of processes or to improve/implement new services,

therefore various research and development projects (and sub-projects) are carried out at

various stages.

The Group recognises intangible assets, if they are related to development projects,

forwhich:

• it is probable that the expected future economic benefits that are attributable to the

development costs will flow to the Group;

• respective costs can be measured reliably.

137

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

The realisation of development projects and capitalisation of respective costs to intangible

assets is subject to corporate approvals. In order to approve the project for development

a comprehensive analysis is performed based on information provided by sales, logistics,

marketing and finance functions. The analysis aims to determine:

• technical feasibility of a project;

• impact on the efficiency of processes or magnitude of potential demand for

newproducts;

• capital expenditures requirements (including the cost of third party providers);

• project timeline.

To demonstrate whether the output will generate probable future economic benefits the

Group assesses the output of projects as a separate asset or in combination with other

assets forming a cash-generating unit.

Development costs are realised by dedicated teams in accordance with approved project

budgets. The Group records directly attributable expenses for development projects using

management accounts and respective allocation keys. Major directly attributable costs

are costs of materials and services used or consumed as well as costs of own employees’

remuneration engaged in the development project. For the latest time allocated to the

project by an employee has to be reliably measured and documented. The realisation

of budgets is regularly monitored. In case of changes resulting in an increase in capital

expenditures requirements or a decrease in the expected economic benefits the project is

reviewed in terms of actual recoverability and if the recoverability is assessed as satisfactory

the project is continued under the adjusted assumptions.

Amortisation is commenced upon completion of acceptance procedures aiming to

demonstrate that the asset is ready for the intended use.

8.3. Property, plant and equipment

The most important property, plant and equipment of the Group are machinery and

equipment i.e. automatic parcel machines, as well as assets under construction i.e. parts

of automatic parcel machines that are in the process of completion or assembly and

are not yet installed. All material assets should be capitalised in accordance with IFRS

requirements.

Items of property, plant and equipment should be recognised as assets when:

• it is probable that the future economic benefits associated with the asset will flow to

the entity,

• the cost of the asset can be measured reliably.

Aggregated assets can be capitalised, however, this can only concern small value assets

which do not generate identifiable costs (such as additional installation costs).

Initial measurement

An item of property, plant and equipment should initially be recorded at cost.

Cost includes:

• purchase price, including import duties and non-refundable purchase taxes, after

deducting trade discounts and rebates;

• any directly attributable cost of preparing the asset for its intended use:

– costs of employee benefits,

– professional fees,

– costs of site preparation,

– costs of delivery and handling,

– costs of installation,

– costs of testing,

– the estimated cost of dismantling and removing the asset and restoring the site.

The following expenditures are not part of the initial cost: costs of introducing a new

product or service (including costs of advertising and promotional activities), costs of

opening a new facility or business, staff training and administration and other general

overhead costs.

In particular, for parcel machines, initial value includes all the costs of setting up machines,

which include agents’ commissions for acquiring land, costs of transporting the machine,

costs of installation and costs of groundworks to place the machine in a designated place.

After the date of connection to the network, all costs related to its operation and servicing

are charged to the statement of comprehensive income at the time they are incurred.

138

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Measurement subsequent to acquisition

The Group uses the cost model. Subsequent to initial recognition, assets are measured at

cost less any accumulated amortisation and any accumulated impairment losses.

Parts of some items of property, plant, and equipment may require replacement at regular

intervals. The carrying amount of an item of property, plant, and equipment will include

the cost of replacing the part of such an item when that cost is incurred if the recognition

criteria (future benefits and measurement reliability) are met. The carrying amount of

those parts that are replaced should be removed from the statement of financial position

regardless of whether the replaced part had been depreciated separately or not. Where it

is not possible to determine the carrying amount of the replaced part based on historical

cost, the cost of a replacement might be an indication of what the cost of the replaced part

was at the time it was acquired or constructed.

Subsequent expenditures that are capitalised by the Group to property, plant and

equipment are mainly related to spare parts and extensions of automatic parcel

machines that are installed when utilisation of the machine is close to its maximum

technical capabilities. Maintenance and repair costs incurred after the commencement of

depreciation are recognised in profit or loss.

When substantially all activities necessary to prepare an asset under construction for

its intended use are completed it is reclassified to another class of property, plant and

equipment according to the nature of that item and depreciation is commenced.

Government grants obtained to purchase property, plant and equipment are recognised in

the consolidated statement of financial position as deferred income and are subsequently

recognised in profit or loss (as other operating income) on a straight-line basis over the

average depreciation period of the respective item of property, plant and equipment.

Key judgements, assumptions, and estimation uncertainties

Borrowing costs

The Group incurs borrowing costs (e.g. interests related to long term external financing).

However, the Group assessed that the time necessary to assemble and install automatic

parcel lockers is relatively short and they are not to be treated as the qualifying asset for

capitalisation of borrowing costs, therefore respective borrowing costs incurred by the

Group are recognised in profit or loss.

Depreciation

Depreciation is calculated to write off the cost of items of property, plant and equipment

less than their estimated residual values using the straight-line method over their

estimated useful lives, and is generally recognised in profit or loss.

If significant parts of an item of property, plant and equipment have different useful lives,

then they are accounted for as separate items (major components) of property, plant and

equipment.

Depreciation methods, useful lives and residual values are reviewed at each reporting date

and adjusted prospectively if appropriate.

Estimated useful lives of property, plant and equipment for new items vary between 2 and

40 years. The remaining useful lives are estimated on an individual basis.

The estimated useful lives of property, plant and equipment for all presented periods are as

follows:

Type: Period:

Buildings 10 – 40 years

Technical equipment and machines 8 – 10 years

Automatic parcel machines 10 years

Vehicles 5 years

Other 2 – 5 years

Impairment losses

The Group assesses at the end of each reporting period whether there is any indication

that an asset may be impaired or whether there is any indication that an impairment

loss recognised in prior periods for an asset may no longer exist or may have decreased. If

any such indication exists, the recoverable amount of the asset is estimated. In assessing

whether there is any indication that an asset may be impaired, the Group consider internal

and external sources of information.

The recoverable amount is determined for individual assets or cash-generating

units (“CGU”). The Group determines separate CGUs for operations in Poland and for

foreignoperations.

Impairment losses and subsequent reversals are recognised in profit or loss in other

operating expenses (income).

139

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Any gain or loss on disposal of an item of property, plant and equipment is recognised in

profit or loss and presented within other operating income/expenses.

8.4. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a

lease. A contract is, or contains, a lease if the contract conveys the right to control the use of

an identified asset for a period of time in exchange for consideration.

When a supplier has a substantive right of substitution throughout the period of use, a

customer does not have a right to use an identified asset. A supplier’s right of substitution

is only considered substantive if the supplier has both the practical ability to substitute

alternative assets throughout the period of use and they would economically benefit from

substitution.

To assess whether a contract conveys the right to control the use of an identified asset for

a period of time, the Group assesses whether, throughout the period of use, the customer

has both of the following:

• the right to obtain substantially all of the economic benefits from the use of the

identified asset;

• the right to direct the use of the identified asset.

The Group recognises right-of-use asset and a lease liability as at lease commencement

date. The Group applies practical expedient for short-term leases except of leases related to

vehicles and trailers.

Key judgements, assumptions, and estimation uncertainties

Lease definition

Despite the legal form of contracts for logistic services (warehouses); courier and

transportation services (vehicles and trailers) such contracts are accounted for as

contracts with lease components. The Group assessed that those contracts convey the

right to control the use of an identified asset. Underlying assets are explicitly identified

in these contracts and there is no substantive substitution right of the supplier.

Services are provided to the Group on an exclusive basis therefore the Group obtain

economic benefits from the use of warehouses and vehicles and trailers.

The provision of services is directly related to logistics operations. Suppliers are

incorporated into the logistics chain of the Group and are part of the respective processes

managed by the Group’s employees. Based on an analysis of key decision-making rights it

was assessed, that the Group has the right to direct how and for what purpose the asset

is used.

Lease term

For each lease contract, the Group determines the lease term as the non-cancellable

period of a lease together with periods covered by an option to extend the lease if the

lessee is reasonably certain to exercise that option; and periods covered by an option to

terminate the lease if the lessee is reasonably certain not to exercise that option.

The Group leases mainly the following underlying assets:

• equipment, mainly including automatic parcel machines and sorting equipment,

• land on which automatic machines are installed,

• warehouses and offices,

• vehicles and trailers.

Leases of automatic parcel machines are concluded for a definite period of time, and

typically run for a period of three to four years with the option to purchase the underlying

assets at the end of the lease term. Contracts for leases of automatic parcel machines are

denominated in PLN and EUR.

Contracts for the remaining classes of underlying assets are concluded either for a

definite or indefinite period with a relatively short termination notice period (up to a few

months). The Group does not apply the short-term lease exemption for such contracts

and recognises right-of-use assets and lease liabilities. Contracts for leases of office space,

warehouses and some of the land leases are denominated in EUR, which increases the

Group’s exposure to currency risk.

Payments for some leases vary due to a change in an index or rates i.e. WIBOR rate and

consumer price index. Contracts containing variable lease payments that depend on an

index or rate are initially measured using the index or rate as at the lease commencement

and are subsequently remeasured when the underlying index or rate is changed.

Contracts concluded for a definite period generally do not include early termination or the

option to extend the lease term.

140

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Lease term of contracts concluded for an indefinite period

Leases for key assets are concluded for definite periods. However, a significant portion

of contracts for courier and transportation (vehicles and trailers) and logistic services

(warehouses) as well as leases of land for automatic parcel machines are concluded for

an indefinite period with the right to terminate by each party upon termination notice.

Those leased assets are important for the Group’s operations as they are part of the logistics

operations (warehouses, vehicles, trailers) or enable the provision of services to customers

(land for automatic parcel machines). As the Group is expanding its operations it is expected

that the need for the services and lands will increase in the next few years. Service providers

rotate and the Group changes locations of automatic parcel machines, which result in

frequent changes in the lease portfolio. In order to determine the lease term the Group

identifies portfolios of leases with similar characteristics and assesses factors that create

an economic incentive for the Group to continue such leases for periods longer than the

termination notice period. Based on Management decision the assets under lease contracts

with indefinite period were grouped in following class of assets: land, warehouses, vehicles

and trailers which were further spliced into key providers and other providers. For each

Group the Management Board assessed the expected lease period taking into account the

current Group strategy and the irrevocable lease term. Below is a summary of average lease

terms applied in 2020 and 2021 for each underlying class of asset:

Period:

Land 12 months

Warehouses 12 months

Vehicles and trailers, including:

key providers 12 months

other 1-3 months

Discount rate

At lease inception, the lease liability is measured at the present value of the lease payments

that are unpaid at that date. Lease payments are discounted using the interest rate implicit

in the lease (mainly applicable for the lease of equipment, where such rate is known) or

the Group uses the lessee’s incremental borrowing rate. The incremental borrowing rate

is estimated based on a model that determines the interest rate that the Group, as a

lessee, would have to pay to borrow over a similar term, and with similar security, the funds

necessary to obtain an asset of a similar value to the right-of use asset in a similar economic

environment. The interest rate is determined based on the risk-free rates for instruments

denominated in PLN or EUR and adjusted by a margin reflecting the Group’s rating, and

further adjusted to the nature of underlying assets.

The below table presents the weighted average discount rates applied for leases in 2020

and 2021:



2021 2020

Currency Currency

Maturity PLN_3M EUR_3M PLN_3M EUR_3M

Up to 12 months 3.26% 2.35% 5.62% 4.00%

1-3 years 3.55% 2.37% 6.06% 4.20%

3-5 years 3.88% 2.45% 6.41% 4.29%

5-7 years 4.17% 2.58% 6.54% 4.52%

7-10 years 4.42% 2.76% 6.83% 4.75%

over 10 years 4.95% 3.16% 7.07% 5.30%

Purchase option

At the lease commencement date, the Group assesses whether it is reasonably certain

to exercise the right to purchase the underlying asset. This primarily applies to leases of

automatic parcel machines. Key aspects taken into consideration are their importance

to the Group’s operations, commercial terms and available alternatives. Due to the fact

that the Group is in the process of network expansion it was assessed that it is reasonably

certain that the Group will exercise the purchase option for currently leased automatic

parcel machines in the vast majority of cases. As a result lease payments include the

exercise price of purchase options, which results in a higher lease liability and right-of-use

assets. In such instances, the right-of use asset is depreciated to the end of the useful life of

the underlying asset.

141

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Measurement of the right-of-use asset

The right-of-use asset is initially measured at cost, which comprises the initial amount of

the lease liability adjusted for any lease payments made at or before the commencement

date, plus any initial direct costs incurred and an estimate of costs to dismantle and

remove the underlying asset or the site on which it is located less any lease incentives.

The right-of-use asset is subsequently depreciated using the straight-line method from

the commencement date to the earlier of the end of the useful life of the right-of-use

asset or the end of the lease term. The estimated useful lives of the right-of-use assets are

determined on the same basis as those of property, plant and equipment. In addition,

the right-of-use asset is reduced by impairment losses, if any, and adjusted for certain

remeasurements of the lease liability.

Measurement of the lease liability

The lease liability is initially measured at the present value of the lease payments that are

unpaid at the commencement date, discounted using the interest rate implicit in the

lease or, if the rate cannot be readily determined, the Group`s incremental borrowing rate.

Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of lease liability comprise the following:

• fixed payments, including in-substance fixed payments;

• variable lease payments that depend on an index or rate, initially measured using the

index or rate as at the commencement date;

• amounts expected to be payable under a residual value guarantee;

• the exercise price under a purchase option that the Group is reasonably certain to

exercise, lease payments in an optional renewal period if the Group is reasonably certain

to exercise an extension option, and penalties for early termination of a lease unless the

Group is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is

remeasured when there is a change in future lease payments arising from a change in an

index or rate, if there is a change in the Group’s assessment of whether it will exercise a

purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to

the carrying amount of the right-of-use asset, or is recognised in profit or loss if the carrying

amount of the right-of-use asset has been reduced to zero.

Low-value asset exemption

The Group has chosen not to apply low-value asset exemption and as consequence

recognises as leases all contracts meeting lease recognition criteria despite the underlying

asset value.

8.5. Financial instruments

Recognition and initial measurement

The Group recognises a financial asset or financial liability when it becomes a party to the

contractual provisions of the instrument. The Group derecognises a financial asset from

the books when the contractual rights to the cash flows from the financial asset expire. The

financial liability (or a part of a financial liability) is removed from the books when

the obligation specified in the contract is discharged or cancelled or expires.

At initial recognition, the Group measures financial instruments at their fair value adjusted,

in the case of a financial asset or financial liability not at fair value through profit or loss,

for transaction costs that are directly attributable to the acquisition or issue of the

financial asset or financial liability. Trade receivables with a maturity date not exceeding

12 months (i.e. without a significant financing component) are initially measured at the

transaction price.

Classification

The Group classifies financial assets and financial liabilities recognised in the consolidated

statement of financial position into the following categories:

• financial assets measured at fair value through profit or loss (“FVTPL”),

• financial assets measured at amortised cost,

• financial liabilities at fair value through profit or loss (“FVTPL”),

• other financial liabilities.

142

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Financial assets

Classification of financial assets into particular categories is carried out on the basis

of the Group business model for managing financial assets and the contractual cash

flow characteristics of the financial asset (the SPPI test). The Group’s business model for

managing financial assets refers to how it manages its financial assets in order to generate

cash flows. The business model determines whether cash flows will result from collecting

contractual cash flows, selling the financial assets, or both.

A financial asset is classified as measured at amortised cost if it meets both of the following

criteria and is not designated as measured at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual

cash flows,

• its contractual terms give rise on specified dates to cash flows that are solely payments

of principal and interest on the principal amount outstanding (meets the SPPI test).

Financial assets with cash flows that are not SPPI (‘solely payments of principal and interest

on the principal amount outstanding’) are classified and measured at FVTPL, irrespective of

the business model.

Financial assets are not reclassified subsequent to their initial recognition unless the

Group changes its business model for managing financial assets, in which case all affected

financial assets are reclassified on the first day of the first reporting period following the

change in the business model.

The Group’s financial assets measured at amortised cost include mainly trade receivables

(not subject to non-recourse factoring). Other financial assets in this category embrace

among others: deposits, granted loans and other receivables. Financial assets measured

at FVTPL include derivative instruments that are not financial guarantee contracts and are

not designated as effective hedging instruments (CIRS) and trade receivables under non-

recourse factoring.

Financial liabilities

A financial liability is classified as at FVTPL if it is classified as held for trading, it is a derivative

or it is designated as such on initial recognition. Other financial liabilities include financial

liabilities, which have not been classified as measured at fair value through profit or loss.

The Group’s financial liabilities include trade payables and other liabilities, loans and

borrowings including bank overdrafts, lease liabilities, factoring liabilities and derivative

financial instruments.

Subsequent measurement

Category of a financial

asset or financial liability

Measurement

method

Recognition

principle

Financial assets

measured at FVTPL

at fair value a result from subsequent

measurement is recognised

in profit or loss

Financial assets

measured at

amortised cost

at amortised

cost by applying

the effective

interest rate

a result from subsequent

measurement, derecognition

or modification is recognised

in profit or loss, the amortised cost

is reduced by impairment losses

Other financial

liabilities

at amortised

cost by applying

the effective

interest rate

a result from subsequent

measurement, derecognition

and modification is recognised

in profit or loss

Financial liabilities

at FVTPL

at fair value a result from subsequent

measurement is recognised

in profit or loss

Derecognition

The Group derecognises a financial asset from the consolidated statement of

financialposition when the contractual rights to the cash flows from the financial

asset expire or the Group transfers the rights to receive the contractual cash flows in a

transaction in which substantially all of the risks and rewards of ownership of the financial

asset are transferred or in which the Group neither transfers nor retains substantially all of

the risks and rewards of ownership and it does not retain control ofthe financial assets.

The financial liability (or a part of a financial liability) is removed from the consolidated

statement of financial position when the obligation specified in the contract is discharged

or cancelled or expires. The Group also derecognises a financial liability when its terms are

modified and the cash flows of the modified liability are substantially different, in which

case a new financial liability based on the modified terms is recognised at fair value.

The difference in the respective carrying amounts is recognised in the statement of

profit or loss.

143

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Derivative financial instruments

The Group uses derivative financial instruments, such as CIRS to hedge its foreign currency

risks and interest rate risks. Such derivative financial instruments are initially recognised at

fair value on the date on which a derivative contract is entered into and are subsequently

remeasured at fair value. Derivatives are carried as financial assets when the fair value is

positive and as financial liabilities when the fair value is negative. The Group has not

designated any derivatives as hedging instruments in hedge relationships as defined

by IFRS 9.

Key judgements, assumptions, and estimation uncertainties

Impairment of trade receivables and other financial assets

The Group recognises an allowance for expected credit losses (“ECLs”) for all financial assets

not held at fair value through profit or loss. Expected credit losses are credit losses weighed

by the default probability. A credit loss is measured as the difference between cash

flows due in accordance with the contract and cash flows the Group expects to receive,

discounted at an approximation of the original effective interest rate. The expected cash

flows will include cash flows from the sale of collateral held or other credit enhancements

that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a

significant increase in credit risk since initial recognition, ECLs are provided for credit losses

that result from default events that are possible within the next 12 months (a 12-month

ECL). For those credit exposures for which there has been a significant increase in credit

risk since initial recognition, a loss allowance is required for credit losses expected over the

remaining life of the exposure, irrespective of the timing of the default.

For trade receivables, the Group applies a simplified approach in calculating ECLs.

Therefore, the Group does not track changes in credit risk, but instead recognises a loss

allowance based on lifetime ECLs at each reporting date. The Group has established a

provisions matrix for trade receivables not covered by an individual write-off. The provision

matrix is based on its historical credit loss experience, adjusted for forward-looking factors

specific to the debtors and the economic environment.

The Group considers a financial asset in default when contractual payments are 60days

past due. An individual assessment of the trade receivables is performed before the

application of the simplified ECLs approach and in certain cases, the Group considers a

financial asset to be in default when internal or external information indicates that the

Group is unlikely to receive the outstanding contractual amounts in full before taking into

account any credit enhancements held by the Group.

In the case of remaining trade receivables (not subject to individual assessment), the

Group applies a simplified approach in calculating ECLs. As part of this solution, the Group

developed, based on its historical data on credit losses in relation to trade receivables (not

covered by non-recourse factoring), provision rates depending on the number of days for

which a given trade receivable is out of date. Provision rates, calculated on the basis of

historical data, resulting from the following calculations:

• PD (probability of default) – the probability of delay in payment of receivables by at least

60 days,

• LGD (loss given default) – the amount of losses incurred in the event of a default.

For receivables with a maturity of up to 60 days are covered by insurance (due to the

deadline for transferring the receivables to the insurer), in order to calculate the expected

credit loss, the Group grouped receivables into the following segments which, in the

Group’s opinion, show a similar structure of credit losses:

• current receivables that are covered or eligible for transfer to an insurer,

• receivables overdue up to 60 days that are covered by insurance or qualify for transfer to

the insurer,

• receivables overdue by 61-365 days, which are not covered by insurance, and for which

the Group accepts PD = 100%.

The impact of insurance is reflected in the calculation of the PD ratio and the adopted

default moment (i.e. 60 days).

In order to determine the provision rates, the Group’s starting point was historical data for

the individual segments described above, which are then adjusted for current, observable

data to reflect the effects of current conditions and forecasts of future conditions that did

not affect the period to which they relate, and to remove the effect of those conditions over

the historical period that is immaterial to the future cash flows of the contract. The Group

takes into account the information related to the future in the parameters of the expected

loss estimation model by adjusting the base probability coefficients of the expected loss

estimation model by adjusting the base probability coefficients of default. For biggest

individual clients Group calculates probability of default on basis of their credit ratings.

The Group applies an individual approach to calculating the allowance for expected credit

losses for non-current receivables resulting from deposits made mainly in connection with

APM locations and rental of branches.

A financial asset is written off when there is no reasonable expectation of recovering the

contractual cash flows.

144

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

The fair value hierarchy of financial instruments

The Group measures financial instruments, such as derivatives and receivables subject to

non-recourse factoring at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability

in an orderly transaction between market participants at the measurement date. The fair

value measurement is based on the presumption that the transaction to sell the asset or

transfer the liability takes place either:

• In the principal market for the asset or liability,

• In the absence of a principal market, in the most advantageous market for the asset

or liability.

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market

participants would use when pricing the asset or liability, assuming that market

participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s

ability to generate economic benefits by using the asset in its highest and best use or by

selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for

which sufficient data are available to measure fair value, maximising the use of relevant

observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial

statements are categorised within the fair value hierarchy, described as follows, based on

the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets

orliabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the

fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the

fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements at fair value on a

recurring basis, the Group determines whether transfers have occurred between levels

in the hierarchy by re-assessing categorisation (based on the lowest level input that is

significant to the fair value measurement as a whole) at the end of each reporting period.

The Group’s Financial Reporting Department with the approval of the Group CFO

determines the policies and procedures for both recurring fair value measurement, such as

receivables subject to non-recourse factoring, and for non-recurring measurement, such as

assets held for sale in discontinued operations.

External valuers may be involved in the valuation of significant assets, such as unquoted

financial assets and significant liabilities. The involvement of external valuers is determined

by the Group’s Financial Reporting Department after discussion with and approval by the

Group CFO. Selection criteria include market knowledge, reputation, independence and

whether professional standards are maintained. Valuers are normally rotated every three

years. The Group’s Financial Reporting Department decides, after discussions with the

Group’s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the Group Financial Reporting Department analyses the

movements in the values of assets and liabilities which are required to be remeasured or

re-assessed as per the Group’s accounting policies. For this analysis, the Group Financial

Reporting Department verifies the major inputs applied in the latest valuation by

agreeing on the information in the valuation computation to contracts and other relevant

documents.

The Group Financial Reporting Department also compares the change in the fair value of

each asset and liability with relevant external sources to determine whether the change

is reasonable.

For the purpose of fair value disclosures, the Group has determined classes of assets and

liabilities on the basis of the nature, characteristics and risks of the asset or liability and the

level of the fair value hierarchy, as explained above.

Fair-value related disclosures for financial instruments that are measured at fair value or

where fair values are disclosed, are summarized in the following note 38.2.

145

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

8.6. Trade and other receivables

According to IFRS 15, trade receivables with a maturity date not exceeding 12 months (i.e.

without a significant financing component) are initially recognised in the amount equal

to the transaction price, during or at the moment of transfer of the goods or services

promised by the agreement, namely the transfer of control over the asset to the customer.

At initial recognition, receivables in a foreign currency are measured at the average

exchange rate of the NBP from the day immediately preceding the recognition of

thereceivable.

Trade receivables with a significant financing component are recognised initially at fair

value which is determined as the discounted value of future cash flows that are expected

to flow to the Group.

For the purposes of subsequent measurement, trade receivables are sub-divided by

customers into two portfolios:

• hold to collect business model for trade receivables not subject to non-recourse

factoring arrangement: where the receivables are measured at amortised cost;

• selling business model for trade receivables intended to be subject to non-recourse

factoring arrangements: where the receivables are measured at fair value through profit

or loss.

An impairment analysis of trade receivables measured at amortised cost is performed

at each reporting date. As the Group’s exposure to credit risk is influenced mainly by the

individual characteristics of the customers, detailed individual monitoring and assessment

of the trade receivables are performed resulting in 100% expected credit loss allowance for

the receivables:

• past due for more than 1 year;

• subject to a debt restructuring process (immediately upon the Group receiving

information regarding the debtors being placed in a state of bankruptcy or liquidation);

• subject to legal proceedings – as soon as there is a decision to take the debtor tocourt;

• cancelled subscriptions (some of the entities within InPost Group have a separate

treatment for subscription customers which are subject to a debt collections process

immediately after cancelling the subscription due to non-payment and are then subject

to legal proceedings).

To reflect factors that may influence the credit risk of the customer database and changes

in credit quality not yet detected at an individual level, the Group uses a provision matrix to

measure expected credit losses (“simplified approach”). As trade receivables up to 60 days

past due are generally covered by letters of credit or other forms of credit insurance, the

Group divided the portfolio of trade receivables into two segments:

• up to 60 days past due and;

• 61 – 365 days past due. The Group considers a trade receivable in default when

contractual payments are over 60 days past due.

The allowance rates are based on actual loss experience for segments that Group trade

receivables with similar loss patterns. These rates are also adjusted to reflect differences

between economic conditions during the period over which the historical loss experience

has been analysed, current conditions and the Group’s view of economic conditions over

the expected lives of the trade receivables.

Key judgements, assumptions, and estimation uncertainties

Factoring arrangements

Based on management’s judgment applied to all relevant facts and circumstances

regarding the factoring arrangements, the terms of the non-recourse factoring

arrangements result in the transfer of substantially all the risks and rewards of ownership

of the receivables. Therefore all receivables that are factored under non-recourse

arrangements meet the financial asset derecognition criteria, resulting in the original

receivable being derecognised from the statement of financial position once invoices are

transferred to the factor. The balance of trade receivables subject to non-recourse factoring

arrangements represents the value of invoices not yet transferred to the factor (but concerning

customers subject to the non-recourse factoring arrangement). Trade receivables are

transferred within approximately seven days from the initial recognition date.

Impact of factoring arrangements on the trade receivables business model assessment

For the purposes of the business model assessment of trade receivables, the Group

considers that for a particular customer it can identify whether or not receivables will be

factored without a recourse, therefore trade receivables are sub-divided by customers into

two portfolios:

• hold to collect business model for trade receivables not subject to non-recourse

factoring arrangement: where the relevant activities represent a collection of contractual

cash flows. These receivables are measured at amortised cost;

• selling business model for the trade receivables subject to non-recourse factoring

arrangements: where the Group’s objective is to realise cash flows primarily through

selling. These receivables are measured at fair value through profit or loss. Fair value

is estimated based on estimates of amounts that could be received from the factor if

such receivable is transferred to the factor at the initial recognition or at the balance

sheetdate.

146

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

When evaluating the business model the Group considered analysis of past sales and

expectations of future sales in terms of frequency and value.

Cash inflows from trade receivables subject to factoring arrangements are presented as

cash flows from operating activities.

8.7. Inventories

The Group measures inventories at a lower cost and net realisable value. Net realisable

value (‘NRV’) is the estimated selling price in the ordinary course of business less the

estimated costs of sale. The net realisable value may differ from a fair value less costs to sell,

because NRV is an entity-specific value whereas fair value is not.

Cost should include all:

• costs of purchase (including taxes, transport, and handling) net of trade discounts

received,

• costs of conversion (including fixed and variable manufacturing overheads), and

• other costs incurred in bringing the inventories to their present location and condition.

Inventory cost should not include:

• abnormal amounts of wasted materials, labour or other production costs,

• storage costs, unless those costs are necessary for the production process before a

further production stage,

• administrative overheads that do not contribute to bringing inventories to their present

location and condition,

• selling costs,

• foreign exchange differences arising after the acquisition of inventories invoiced in a

foreign currency,

• interest cost when inventories are purchased with deferred settlement terms.

Measurement method

For inventory items that are not interchangeable and for items that are segregated for a

specific project, specific costs are attributed to the specific individual items ofinventory.

For interchangeable items, the Group uses the „first-in, first-out” method (FIFO).

Write-down to net realisable value

A new assessment of net realisable value is made in each reporting period. If the cost of

the inventory falls lower than NRV, then each item of inventory should be written down

to its NRV on an individual basis. However, this may be applicable upon a group of items

in inventory if they have similar purposes or end uses, are produced and marketed in the

same geographical area, and cannot be practicably evaluated separately from other items.

The Group classifies inventories write-down to net realisable value as asset impairment in

the statement of comprehensive income in the period in which the write-down occurs.

Reversal of impairment is recognised as a reversal of asset impairment in the statement of

comprehensive income in the period in which the write-down occurs.

The NRV of the inventory will be remeasured at each subsequent reporting date. When the

circumstances that previously caused inventories to be written down below cost no longer

exist, or where there is clear evidence of an increase in NRV because of changed economic

circumstances, the amount of the write-down is reversed, so that the new carrying amount

is the lower of cost and the revised net realisable value.

8.8. Cash and cash equivalents

Cash and cash equivalents include cash in bank and in hand, bank deposits payable on

demand and short-term highly liquid deposits with the primary maturity period not

exceeding three months, that are readily convertible to a known amount of cash and

subject to an insignificant risk of changes in value. Cash and cash equivalents also include

interest on cash equivalents.

The management assessed that the fair values of cash and short-term deposits and bank

overdrafts approximate their carrying amounts largely due to the short-term maturities of

these instruments.

Bank overdrafts are presented as a component of current loans and borrowings under

current liabilities, and are not considered as cash and cash equivalents for the purposes of

the consolidated statement of cash flows.

147

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

8.9. Other assets

Other assets consist of minor assets that do not naturally fit into any of the main asset

categories, amongst all: advances to employees, receivables from the State, prepaid costs

or prepaids made for property, plant and equipment and intangible assets.

Other assets are presented in the Balance Sheet as current and non-current depending on

their expected period of realisation.

8.10. Trade payables and other liabilities

Trade payables are non-interest bearing liabilities for the goods and services purchased in

the course of ordinary business operations from suppliers. Other financial liabilities include

mainly liabilities recognised in relation to settlement of cash-on-delivery option (liabilities

represent cash collected from the recipient on behalf of the sender for item delivered in

parcel) and investment liabilities.

Other non-financial liabilities consist mainly of payroll liabilities and payables to the state,

advances received and other liabilities not classified as trade liabilities. Group presents

liabilities resulting from cash collected during delivery (CoD) on behalf of its clients as other

non-financial liabilities. Cash that hasn’t been yet collected and transferred to group bank

accounts is not recognised as liabilities towards its clients.

Liabilities are classified as current liabilities, if the payment term is within a year or if

they arise in the ordinary cycle of business operations, if longer. Otherwise, liabilities are

reported as non-current.

At recognition trade payables and other liabilities are initially measured at fair value,

and they are subsequently measured at amortised cost, using the effective interest rate

method.

In the event that the effect of the time value of money is not significant, the amount of

liabilities is recognised without discounting.

8.11. Employee benefits and other provisions

Short-term employee benefits

Short-term benefits are expensed as the related service is provided. A liability is recognised

for the amount expected to be paid if the Group has a present legal or constructive

obligation to pay an amount as a result of past service provided by the employee and the

obligation can be estimated reliably.

Unused holiday and performance bonus provisions representing short-term employee

benefits are recognised at the undiscounted amount of benefits expected to be paid in

exchange for the respective service.

Share-based payment arrangements

The Group offers the award program (Management Incentive Plan (MIP) and Long Term

Incentive Plan (LTIP)) for the employees and offers them the right to purchase the shares

in the Parent company. The program is classified as equity settled due to the fact that the

Company does not have an obligation to settle the obligation arising under the program

by delivering cash to the employees or contractors. Over the vesting period of awards At

the grant-date fair fair value value of equity-settled share-based payment arrangements

granted to employees is generally recognised as an expense, with a corresponding increase

in equity., over the vesting period of awards. The amount recognised as an expense is

adjusted to reflect the number of awards for which the related service and non-market

performance conditions are expected to be met, such that the amount ultimately

recognised is based on the number of awards that meet the related service and non-

market performance conditions at the vesting date.

Defined benefit plan

The Group’s obligation in respect of defined benefit plans is calculated separately for

each plan by estimating the amount of future benefit that employees have earned in the

current and prior periods, discounted to determine their present value. The discount rate

is determined based on interest rates on treasury bonds expressed in the currency of the

future benefit payments, with maturities similar to the date of settlement of the respected

liabilities. The calculation of defined benefit obligations at the end of the reporting period

is performed by a qualified actuary using the projected unit credit method. The cost of a

defined benefit plan is recognised in profit or loss with an exception to actuarial gains and

losses which are recognised in other comprehensive income.

Other long-term employee benefits

The Group’s obligation in respect of other long-term employee benefits is the amount of

future benefit that employees have earned in return for their service in the current and

prior periods. That benefit is discounted to determine its present value. Remeasurements

are recognised in profit or loss in the period in which they arise.

148

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Key judgements, assumptions and estimation uncertainties

Estimation of employee benefits

The carrying amount of the defined benefit liability is equal to the present value of the

benefits payable. The amount of the liability depends on many factors, which are used

as assumptions in the actuarial model. Any changes to the assumptions may impact the

carrying amount of the liability. Interest rates are one of the primary variables in measuring

liability. At the end of the reporting period, based on the opinion of an independent

actuary, an appropriate discount rate for the Group’s companies is used for determining

the present value of estimated future cash outflow in relation to these benefits.

Share based payments

For details regarding key judgements, assumption and estimation please refer to note 31.

Other provisions

Other provisions include mainly:

• Litigationsprovision

• Restructuring provision

• Other needed

Provisions are recognised when the Group has a present obligation (legal or constructive)

as a result of a past event, it is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation and a reliable estimate can be made

of the amount of the obligation. When the Group expects some or all of a provision to

be reimbursed, the reimbursement is recognised as a separate asset, but only when the

reimbursement is virtually certain. The expense relating to a provision is presented in

the statement of profit or loss net of any reimbursement. If the effect of the time value

of money is material, provisions are discounted using a current pre-tax rate that reflects,

when appropriate, the risks specific to the liability. When discounting is used, the increase

in the provision due to the passage of time is recognised as a finance cost.

All above provisions are calculated using relevant and accurate calculations that allow

accessing possible future outflows connected with specific possible events. For instance,

when calculating the amount of Litigation provision, the Group takes into account the

opinion of external legal advisors about the possibility that outcome of the litigation will be

unfavourable for the Group, and recognises relevant provision.

8.12. Contract liabilities

Contract liabilities comprise the Group’s obligation to transfer services to a customer for

which the Group has received consideration. The Group recognises the contract liability

mainly in relation to the contracts for which payment is received upfront (prepaids)

whereas revenue recognition is deferred. The contract liability is gradually derecognised

(and respective revenue is recognised) as services are provided to a customer – when

parcels are delivered to the recipient or to automatic parcel machines. Contract liabilities

are presented in “Other liabilities”.

8.13. Government grants

Government grants related to assets are initially recognised as deferred income at fair value

if there is reasonable assurance that they will be received and the Group will comply with

the conditions associated with the grant. The Group recognises grants in profit or loss as

other income on a systematic basis over the useful life of the asset.

Grants that compensate the Group for expenses incurred are recognised in profit or loss on

a systematic basis in the periods in which the expenses are recognised.

8.14. Income tax

Income tax expense for the reporting period comprises current and deferred tax. It is

recognised in profit or loss except to the extent that it relates to a business combination or

items recognised directly in equity or other comprehensive income.

The management reviews periodically the approach adopted in the preparation of tax

returns where the applicable tax regulations are subject to interpretation. When justified, a

provision is created for the expected tax payable to tax authorities.

Current income tax

Current income tax comprises the expected tax payable or receivable on the taxable

income or loss for the reporting period and any adjustments to the tax payable or

receivable relating to previous years. The amount of current tax payable or receivable is the

best estimate of the tax amount expected to be paid or received taking into account any

uncertainties related to income taxes. Current tax is calculated using the tax rates enacted

or substantively enacted at the reporting date in countries where the Group’s entities

operate and generate taxable income or losses.

149

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

8. Significant accounting policies continued

Deferred tax

A deferred tax liabilities and deferred tax assets are recognised for all temporary

differences between the carrying amounts of assets and liabilities and amounts used for

taxation purposes, except for:

• temporary differences on the initial recognition of assets and liabilities in a transaction

that is not a business combination and that affects neither accounting profit nor taxable

profit (loss),

• temporary differences related to investments in subsidiaries and associates to the extent

that the Group is able to control the timing of the reversal of the temporary differences

and it is probable that they will not reverse in the foreseeable future.

Deferred tax assets are recognised for unused tax losses and unused tax credits and for

deductible temporary differences to the extent that it is probable that future taxable profit

will be available against which they can be utilised.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary

differences when they reverse, using tax rates enacted or substantially enacted at the

reporting date, taking into account any uncertainties related to income taxes.

Deferred tax assets and deferred tax liabilities are offset if the entity has a legally

enforceable right to set off current tax assets and current tax liabilities, and if the deferred

tax assets and deferred tax liabilities relate to income taxes levied on a given entity by the

same tax authority.

Key assumptions and estimation uncertainties

Recognition of deferred tax assets

Estimated future taxable profits are determined based on the budgets of the entities of

the Group. Deferred tax assets are reviewed at each reporting date and reduced to the

extent that it is no longer probable that the related tax benefit will be realised. At each

reporting date, the Management of the Group reassess unrecognised deferred tax assets

and recognises them to the extent that it has become probable that future taxable profits

will be available against which they can be used. Unrecognised deferred tax assets are

mainly related to tax losses carried forward.

9. Important events within the 2021 period

9.1. IPO, and increase of share capital and Group reorganisation

On 26 January, 2021, the general meeting of shareholders adopted a resolution to increase

the share capital to EUR 5,000,000. To cover the value of new shares, the shareholders

contributed to the company the shares of Integer.pl S.A. and the shares of InPost Technology

S.à r.l. On 26 January, 2021, AI Prime Bidco S.à r.l., a related party of the Company, contributed

100% of the shares held respectively in Integer.pl S.A. and InPost Technology S.à r.l. to InPost

S.A. for a total amount of EUR 7,995,747,974. As a result, the Group presents the increase in

share capital by PLN 22.6 m and in capital premium by PLN 36,360.5 m.

As the transaction was accounted for in these consolidated financial statements as a

reorganisation the total effect of this contribution was included in Reserves (reorganisation)

in the amount of PLN (35,696.3) m as of 31 December, 2021.

Please refer to the detailed information included in note 2.2.

On 27 January, 2021 InPost S.A. shares has been listed on the EURONEXT stock exchange

located in Amsterdam, Netherlands. The existing shareholders sold 40.3% of their shares.

The Group did not receive any proceeds from the listing, the net proceeds were received

by selling shareholders AI Prime, Templeton Strategic Emerging Markets Fund IV, LDC and

PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 2.

150

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

9. Important events within the 2021 period continued

9.2. New financing facility

On 25 January, 2021, Integer.pl S.A. and InPost S.A. signed a loan agreement with a bank

consortium (Bank Handlowy w Warszawie S.A., Bank Pekao S.A., BNP Paribas Bank Polski

S.A., Goldman Sachs Bank Europe SE, JP Morgan AG, mBank S.A., PKO BP S.A., Barclays

Bank Ireland PLC, DNB Bank Polska S.A., Erste Group Bank AG, ING Bank Śląski S.A.). On

the basis of the signed loan agreement, Group has received PLN 1,950 m of long term

guaranteed loans and was able to contract new working capital loans up to the maximum

amount of PLN 800 m. Under the agreement loans received from AI Prime Bidco S.à r.l. by

Integer.pl S.A. were repaid, remaining funds were transferred to AI Prime Bidco S.à r.l. as

a result of the IPO transaction, the existing credit lines have been converted to new terms

and fall within the range of the available PLN 800 m. The cost of the new loan will amount

to a maximum of WIBOR for relevant interest period + 2.75%. The Group’s proceeds from

the bank loan amounted to PLN 2,066.6 m. The funds in the amount of PLN 1,950 m were

transferred to AI Prime Bidco S.à r.l. as repayment of Loans received by Integer.pl S.A. in the

amount of PLN 640.2m and redemption from share capital in the amount of PLN 1,238.1

m. mBank S.A. acted as an agent on behalf of the Group therefore the amounts involved

are presented in the statement of cash flows.

On 12 October, 2021 DNB Bank Polska S.A. was replaced in the bank consortium by Credit

Agricole Bank Polska S.A.

Please refer to note 26 below for a detailed description.

9.3. Acquisition of Mondial Relay

On 15 March, 2021, InPost S.A. announced that it has entered an advanced stage of

negotiations about a potential acquisition of Mondial Relay. On 28 May, 2021 InPost S.A.

has received unconditional approval from European Commission for the acquisition and

on 1 July, 2021 acquisition of 100% voting rights of Mondial Relay was completed – one

of the leading French parcel operators, was acquired by InPost S.A. for EUR 513 m paid

in cash. The acquisition will allow InPost to take a major step in its ambition to become

Europe’s leading out-of-home automated solution for e-commerce by adding the

additional markets to its vast offer and fuelling the potential for cross border deliveries.

Due to the complex nature of the Mondial Relay business the process of goodwill

allocation has not been finalised yet. The Group is in the process of allocating the purchase

price and analysing the net assets of Mondial Relay, in particular the valuation of fixed

assets and provisions. The final accounting of the acquisition of Mondial Relay and

disclosure of all required information must take place within a year

of the transaction.

The fair value of Mondial Relay identifiable net assets at the time of acquisition:

Provisional fair values as at

acquisition date

Assets (+) 

Intangible assets of which: 885.5

Brand 170.8

Customer relationship 700.4

Property, plant and equipment 185.9

Right-of-use assets 196.7

Other long term receivables 23.9

Trade and other receivables 340.3

Other assets 11.5

Cash and cash equivalents 59.2

Liabilities (–) 

Provision for deferred tax 213.7

Other financial liabilities 198.9

Current tax liabilities 30.2

Trade and other liabilities 293.9

Employee benefits and other provisions 80.7

The provisional fair value of identified net assets 885.6

151

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

9. Important events within the 2021 period continued

Goodwill recognised at the acquisition date:

Provisional

fair values as

at acquisition

date

Purchase consideration transferred 2,319.9

Minus:

The provisional fair value of identified net assets 885.6

Goodwill arising on the acquisition 1,434.3

The fair value of the trade receivables amounts to PLN 340.3 m. The gross amount of trade

receivables is PLN 353.9 m and it is expected that the contractual amounts of PLN 13.6 m

won’t be collected.

Goodwill acquired through this business combination is fully allocated to the International

Mondial Relay segment. None of the goodwill recognised is expected to be deductible

for income tax purposes. The “Mondial Relay” brand is allocated entirely to International

Mondial Relay segment.

From the date of acquisition, Mondial Relay contributed PLN 1,079.8 m to revenue and

PLN 100.1 m to profit before tax from continuing operations of the Group. If Mondial Relay

acquisition had taken place at the beginning of the annual reporting period (1 Januaryst,

2021) InPost Group revenues and Net Profit would have been as follows:



Period of 12

months ended

on 31-12-2021

(unaudited)

InPost Group as if Mondial Relay acquisition was completed

on 1 Januaryst 2021

Revenue 5,797.7

Operating profit 1,031.7

Net profit 652.2

Additional costs of acquisition (Legal, Advisory etc.) were recognised as external services

costs in the consolidated statement of profit and loss in the amount of PLN 46.5 m.



Provisional

fair values as

at acquisition

date

Purchase consideration transferred 2,319.9

Minus:

Cash and cash equivalents acquired 59.2

Acquisition of a subsidiary, net of cash acquired 2,260.7

Impairment testing

For the purpose of impairment testing, goodwill acquired through business combination

and the brand with indefinite useful live are allocated to International Mondial Relay

segment (covering markets of France, Belgium, Spain, Netherlands and Portugal). The

recoverable amount of International Mondial Relay segment assets is PLN 3,243.5 m

as at 31 December, 2021 has been determined based on fair value less costs of disposal

calculation using discounted cash flow projections based on the financial budgets

adjusted for market conditions approved by senior management covering a five-year

period. The post-tax discount rate applied to cash flow projections is 8.48% and cash

flows beyond the five-year period are extrapolated using a 2.0% growth. As a result of the

analysis, the Management did not identify an impairment of International Mondial Relay

segment assets.

152

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

9. Important events within the 2021 period continued

The following is a summary of the total recoverable amount and carrying amount at the

end of the reporting period for International Mondial Relay segment net assets:

Mondial

Relay

Recoverable value (fair value less costs of disposal) 3,065.4

Carrying amount of net assets of which: 2,348.1

Goodwill 1,434.3

Brand 170.8

Headroom 717.3

Key assumptions used in value in use calculations and sensitivity to changes in

assumptions

All inputs significant to the fair value measurement are categorised within Level 3 of the

fair value hierarchy. The calculation of fair value less costs of disposal is most sensitive to the

following assumptions:

• Discount rates

• Growth rates used to extrapolate cash flows beyond the forecast period

Discount rates − Discount rates represent the current market assessment of the risks

specific to each CGU, taking into consideration the time value of money and individual

risks of the underlying assets that have not been incorporated in the cash flow estimates.

The discount rate calculation is based on the specific circumstances of the Group and

its operating segments and is derived from its weighted average cost of capital (WACC).

The WACC takes into account both debt and equity. The cost of equity is derived from

the expected return on investment by the Group’s investors. The cost of debt is based on

the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is

incorporated by applying individual beta factors. The beta factors are evaluated annually

based on publicly available market data.

Sensitivity analysis to discount rates:

WACC ratio Change in WACC

-1.0 pp -0.5 pp 0.5 pp 1.0 pp

WACC 8.48% 7.48% 7.98% 8.98% 9.48%

Headroom 717.3 1,625.0 1,131.5 365.1 62.6

Growth rate estimates − Rates are based on cautious expectations of management taking

into account possibilities of changes in customers behaviour and market new entrants.

Sensitivity analysis to growth rate estimates:

Growth rate Change in Growth rate

-1.0 pp -0.5 pp 0.5 pp 1.0 pp

Growth rate 2.00% 1.00% 1.50% 2.50% 3.00%

Headroom 717.3 171.9 425.0 1,058.4 1,461.7

On 29 June, 2021 InPost S.A. announced the closing of the offering of EUR 490m in

aggregate principal amount of euro-denominated 2.250% senior notes due 2027. Further, on

8 July, 2021 InPost S.A. has announced the closing of the offering of PLN 500m in aggregate

principal amount of series A PLN denominated 2.500% + WIBOR 6m notes due 2027.

The Group utilized the proceeds from the offering:

• to consummate the acquisition of Mondial Relay SAS;

• to pay fees and expenses in connection with the acquisition and the related financing

transactions;

• to refinance the existing indebtedness;

• for general corporate purposes.

For details of the bond issuance, please refer to note 26.

9.4. COVID-19 pandemic

The Management Board analysed the effects that the COVID-19 pandemic has on disclosures,

assumptions and judgements adopted in the preparation of the consolidated financial

statements for the period of 12 months ended 31 December, 2021. At the time of publication

of the statement, the pandemic did not cause any significant restrictions on the Group’s

operations, such as suspension or limitation of operations, or operational problems in the

course of its operations. On the contrary the pandemic caused a significant acceleration in

the e-commerce adoption in Poland and abroad. We can surely state that the pandemic

did not affect negatively the financial situation of the Group and also its financial liquidity.

Parcel lockers remain one of the safest delivery methods in the pandemic era, enabling social

distancing and non-contact pickup of goods ordered by buyers. All potential supplier issues

are analysed and contingency plans as well as alternative suppliers are put in place if needed.

The Group is constantly adapting its activities to the changing legal requirements introduced

by the Polish government. At the moment, the Group does not expect any significant

negative impact of the pandemic on the expected results and cash flows and any negative

impact on assumptions regarding going concern.

153

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

10. Information on significant accounting estimates

The preparation of the consolidated financial statements in accordance with IFRS

adopted by EU requires the use of certain critical accounting estimates. It also requires

Management to exercise its judgment in the process of applying the Group’s accounting

policies. Estimations and judgements are being constantly verified and are based on

historical experience and other factors, including expectations of future events that are

believed to be reasonable under the circumstances.

The significant judgments made by Management in applying the Group’s accounting

policies were described in detail in these consolidated financial statements.

The summary of judgements and estimates with references to respective notes is

presented in the table below:

Note Title

8.3, 20 Property, plant and equipment

8.2, 19 Intangible assets

8.14, 13.3 Deferred tax assets

8.5, 8.6, 24, 38, 39 Trade and other receivables

8.11, 30, Provisions and employee benefits

8.4, 21 Leases

8.1, 9.3 Acquisition of Mondial Relay

11. Segment information

For management purposes, the Group presents results in four reportable segments

divided into two following geographical regions:

• Segments in Poland

1. APM segment, which is focused on the delivery of parcels to automated parcel

machines

2. To-door segment, which includes delivery of parcels using door-to-door couriers

• Segments outside Poland

3. Mondial Relay segment, which includes APM business and PUDO points in France,

Spain, Belgium, Netherlands and Portugal.

4. International Other segment, which includes APM business (delivery of parcels to

automated parcel machines) in the United Kingdom and Italy.

In addition to the above reportable segments in Poland, there is another segment that

consists mainly of marketing and IT services provided for external customers as well as

production and sale of APM’s to external customers. No operating segments of the Group

has been aggregated to form the above reportable operating segments.

The Management Board is the Chief Operating Decision Maker (CODM) and monitors

the operating results of its business units separately for the purpose of making decisions

about resource allocation and performance assessment. Segment performance is assessed

on the basis of revenue and gross profit or loss, measured consistently with those in the

consolidated financial statements. Additionally aggregated segments at the geography

level are assessed based on Operating EBITDA and Adjusted EBITDA. Operating EBITDA

reflects “operating profit before amortisation and depreciation”. Adjusted EBITDA reflects

operating profit before amortisation and depreciation adjusted with non-cash (Share base

payments) andOne-off costs (IPO, Restructuring and acquisition costs). The accounting

policiesadopted are uniform for all segments and consistent with those applied forthe

Group.

Segments’ direct costs include among others costs of PUDO points, which are delivery at

pick-up drop-off facilities.

Transfer prices between operating segments are on an arm’s-length basis in a manner

similar to transactions with third parties.

Inter-segment revenues are eliminated upon consolidation and reflected in the Inter-

segment eliminations column.

General cost, depreciation, finance costs, finance income and fair value gains and losses on

financial assets are not allocated to individual segments as the underlying instruments are

managed on a Group basis.

154

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a Group basis.

Period of 12 months ended on 31-12-2021

International Poland

Total

reportable

segmentsMondial Relay Other APM To-door Other

Inter-segment

elimination

A B C D A+B+C+D

Revenue 1,080.0 68.8 2,624.4 731.5 100.5 (3.0) 4,602.2 4,504.7

External 1,080.0 68.8 2,624.4 731.5 97.5 – 4,602.2 4,504.7

Inter-segment – – – – 3.0 (3.0) – –

Direct costs: (829.8) (97.8) (956.9) (500.7) (56.6) 2.5 (2,439.3) (2,385.2)

Logistic costs (659.0) (79.9) (889.1) (481.2) – – (2,109.2) (2,109.2)

APM network (1.0) (14.5) (34.7) – – 2.5 (47.7) (50.2)

External costs (1.0) (12.0) (34.7) – – – (47.7) (47.7)

Inter-segment costs – (2.5) – – – 2.5 – (2.5)

PUDO points

(155.5) – (14.3) (3.9) – – (173.7) (173.7)

Other direct costs (14.3) (3.4) (18.8) (15.6) (56.6) – (108.7) (52.1)

Cost of sold APMs and IT projects – – – – – – – –

Gross profit: 250.2 (29.0) 1,667.5 230.8 43.9 (0.5) 2,162.9 2,119.5

PUDO points – commissions for handling parcels at collection and delivery points.

155

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

 Mondial Relay

Other

International Poland Total

Gross profit/(loss) 250.2 (29.0) 1,941.7 2,162.9

General costs (171.9) (95.6) (459.3) (726.8)

– Sales & Marketing (39.2) (4.2) (72.7) (116.1)

– Call Centre (5.8) (9.1) (34.2) (49.1)

– IT Maintenance (34.0) – (43.1) (77.1)

– MIP Valuation – – (80.0) (80.0)

– LTIP Valuation (0.5) (4.1) (7.9) (12.5)

– IPO costs – – (21.9) (21.9)

– M&A costs (75.9) – – (75.9)

– Other general costs (16.5) (78.2) (199.5) (294.2)

Operating EBITDA 78.3 (124.6) 1,482.4 1,436.1

Depreciation and amortisation (76.9) (34.2) (498.6) (609.7)

Operating profit 1.4 (158.8) 983.8 826.4

Mondial Relay

Other

International Poland Total

Operating EBITDA 78.3 (124.6) 1,482.4 1,436.1

– MIP Valuation – – 80.0 80.0

– LTIP Valuation 0.5 4.1 7.9 12.5

– IPO costs – – 21.9 21.9

– M&A costs 75.9 – – 75.9

Adjusted EBITDA 154.7 (120.5) 1,592.2 1,626.4

156

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

The summary of value of fixed assets and intangible assets for the segments is presented in the table below:

Mondial Relay International Poland Total

Property, plant and equipment 554.5 230.4 2,325.1 3,110.0

– of which ROU 295.5 34.1 793.7 1,123.3

Intangible assets 849.5 9.5 177.6 1,036.6

Goodwill 1,434.3 – – 1,434.3

Total 2,838.3 239.9 2,502.7 5,580.9

Period of 12 months ended on 31-12-2020

International Poland

Total

reportable

segmentsAPM APM To-door Other

Inter-segment

elimination

A B C A+B+C

Revenue 17.7 1,815.3 634.9 62.9 (2.7) 2,528.1 2,467.9

External 17.7 1,815.3 634.9 60.2 – 2,528.1 2,467.9

Inter-segment – – – 2.7 (2.7) – –

Direct costs: (27.5) (741.3) (436.6) (4.8) 1.3 (1,208.9) (1,205.4)

Logistic costs (17.1) (671.6) (422.9) – – (1,111.6) (1,111.6)

APM network (7.5) (34.5) – – 1.3 (40.7) (42.0)

External costs (6.2) (34.5) – – – (40.7) (40.7)

Inter-segment costs (1.3) – – – 1.3 – (1.3)

PUDO points

– (11.6) (4.0) – – (15.6) (15.6)

Other direct costs (2.9) (23.6) (9.7) (3.3) – (39.5) (36.2)

Cost of sold APM’s and IT projects – – – (1.5) – (1.5) –

Gross profit: (9.8) 1,074.0 198.3 58.1 (1.4) 1,319.2 1,262.5

For explanation regarding comparative period please refer to note 2.2

PUDO points – commissions for handling parcels at collection and delivery points.

157

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

 International Poland Total

Gross profit/(loss) (9.8) 1,329.0 1,319.2

General costs (34.3) (301.3) (335.6)

– Sales & Marketing (5.7) (63.7) (69.4)

– Call Centre (2.3) (28.3) (30.6)

– IT Maintenance – (22.2) (22.2)

– MIP Valuation – (10.1) (10.1)

– Other general costs (26.3) (177.0) (203.3)

Operating EBITDA (44.1) 1,027.7 983.6

– Depreciation and amortisation (14.4) (341.7) (356.1)

Operating profit (58.5) 686.1 627.5

International Poland Total

Operating EBITDA (44.1) 1,027.7 983,6

– MIP Valuation – 10.1 10.1

Adjusted EBITDA (44.1) 1,037.8 993.7

Reconciliation of profit

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Operating profit 826.4 627.5

Finance income 16.1 0.1

Finance costs 129.7 164.5

Profit (loss) before tax and discontinued

operations

712.8 463.1

For explanation regarding comparative period please refer to note 2.2.

Revenue from external customers

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended

on 31-12-2020

Poland (domestic sales) 3,207.4 2,395.0

International (foreign sales) 1,374.5 118.8

Lithuania 489.1 45.0

United Kingdom 82.3 21.1

China 14.7 11.7

Sweden 94.4 8.6

Czech Republic 10.2 9.6

France 505.6 0.7

Spain 45.6 1.9

Germany 38.2 1.8

Ireland 27.8 1.0

Other 66.6 17.4

Total revenue 4.581.9 2,513.8

Revenue from sales in Poland to the Allegro Group was responsible for 22.5% of the

Group’s revenue forthe 12 months ended 31 December, 2021 and 28.1% of the Group’s

revenue for the 12 months ended 31 December, 2020. Income from sales to Vinted UAB

was responsible for 10.5% of the total revenue (in comparison to less than 10% recognised

in 2020). Significant growth in the share of revenue by Vinted UAB is the impact of the

acquisition of Mondial Relay.

The revenue information above is based on the locations of the customers, not the physical location of the

servicesperformance.

158

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

11.1. Alternative performance measures – Gross Profit, Operating EBITDA and

Adjusted EBITDA

Our segments are based on the structure of our internal management reporting to

facilitate decision-making with respect to the allocation of resources and to assess the

performance of our operations. The performance of our segments is measured and

assessed on the basis of revenue (including other operating income) and Gross Profit.

Additionally, the performance of our combined operations is measured and assessed

on the basis of Operating EBITDA per business type. Given the relative size of operations

outside Poland, the Group shows information relating to all countries other than Poland

and presented this as two reportable segments – International and Mondial Relay.

Gross Profit and Operating EBITDA are considered as alternative performance measures

and presented separately as being important supplemental measures of the Group’s

performance. The Group believes that these and similar measures are used in the industry

in which the Group operates as means of evaluating a company’s operating performance.

However, Gross Profit and Operating EBITDA are not recognised measures of financial

performance, financial condition or liquidity under IFRS. In addition, not all companies may

calculate Gross Profit and Operating EBITDA in the same manner or on a consistent basis.

As a result, this measure may not be comparable to measures used by other companies

under the same or similar names. Accordingly, undue reliance should not be placed on

these measures and they should not be considered in isolation or as a substitute for profit

for the year, cash flow, expenses or other financial measures computed in accordance

with IFRS.

Gross Profit represents a margin realised on deliveries to clients which takes into account

only revenue and other operating income related to deliveries as well as costs directly

attributable tosuchdeliveries.

Gross Profit is defined as net profit (loss) for the period adjusted for profit (loss) from

discontinued operations, income tax expense, profit on sales of an organised part of an

enterprise, the share of profits of equity-accounted investees, finance costs and income,

depreciation and amortisation and general costs. The numerical reconciliation of Gross

Profit to the numbers included in the consolidated financial statements prepared under

IFRS is included in note 11 on segment reporting.

Operating EBITDA represents a metric for evaluating the Group’s performance which

facilitates comparisons of the Group’s operating results from period to period and between

segments by removing the impact of, among other things, its capital structure, asset base

and tax consequences.

Operating EBITDA is defined as net profit (loss) for the period adjusted for profit (loss) from

discontinued operations, income tax expense (benefit), profit on sales of an organised part

of an enterprise, share of profits of equity-accounted investees, finance costs and income,

and depreciation and amortisation.

Starting from 2021, the Group has decided to change the definition of the Adjusted

EBITDA (applied for the first time in the 2020 annual report). CODM’s intention is to

ensure that Adjusted EBITDA is a useful metric for evaluating the Group’s performance

and facilitating period-to-period comparisons of the Group’s core results by removing the

impact of its asset base or capital/financing structure, but also impact of expenses arising

from the Management Incentive Plan (MIP) or any other employee incentive plans that

will follow and costs related to certain material transactions such as IPO or M&A processes,

which the management of the Group considers not related to day to day operations. The

management believes that the Adjusted EBITDA, as modified, is a useful supplemental

metric that allows investors to better understand the performance of the Group’s core

operations and their long-term trends. Adjusted EBITDA, as defined and applied starting

from 2021, represents Operating EBITDA (net profit/loss for the period adjusted for profit/

loss from discontinued operations, income tax expense/benefit, profit on sales of organised

part of an enterprise, share of profits of equity-accounted investees, finance costs and

income and depreciation and amortisation), further adjusted to exclude employee

incentive plans expense and transaction costs (representing costs of PLN 97.8 m relating to

IPO and M&A transactions).

159

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

11. Segment information continued

The following table reconciles net profit to Adjusted EBITDA for the periods indicated:

2021 2020

Net profit/(loss) from continuing operations 491.3 351.5

Income tax 221.5 111.6

Profit/(loss) from continuing operations before tax 712.8 463.1

adjusted by:

– net financial costs 113.6 164.4

– depreciation 609.7 356.1

Operating EBITDA 1,436.1 983.6

– MIP Valuation 80.0 10.1

– LTIP Valuation 12.5 –

– IPO costs 21.9 –

– M&A costs 75.9 –

Adjusted EBITDA 1,626.4 993.7

For explanation regarding comparative period please refer to note 2.2.

12. Revenue and costs

12.1. Revenue

Revenue is recognised when (or as) the performance obligation is fulfilled in the form of

transferring the promised goods, products, materials (i.e. assets) or rendering a service to a

client. The Group recognises revenue in a way that reflects the transfer of promised goods

or services to a customer, in the amount of consideration to which an entity expects to be

entitled in exchange for these goods or services (transaction price), excluding amounts

collected on behalf of third parties, for example – Value Added Tax (VAT).

The Group generates revenue primary from the provision of various courier services to its

customers. There are two groups of courier services – traditional and out-of-home deliveries

of parcels to automatic parcel machines owned or leased by the Group and/or collection

points). Automatic parcel machines are located in residential areas, close to shops and are

open 24/7, which allows customers to easily pick up parcels. Parcels delivered by courier to

automatic parcel machines can be collected by the recipient within 48h. If the parcel is not

collected by the recipient (from courier/automatic parcel machines) it is relocated to one of

the collection points or returned to the sender.

The Group offers rebates to customers which are able to provide volumes of parcels that

exceed thresholds in accordance with agreements. Rebates are the variable consideration

that should be estimated.

In addition to delivery services, the Group generates revenue from the sale of goods (mainly

APMs) and provision of marketing, maintenance and installation services.

160

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

12. Revenue and costs continued

Services Nature, the timing of satisfaction of performance obligations and significant payment terms

Courier services and out-

of-home services

The Group recognises revenue at the point in time upon collection of a parcel by the recipient either from a courier, automatic parcel machine or

collection point. For uncollected parcels, revenue is recognised upon return to the sender.

Typically delivery takes place within 48h.

Parcels delivered by courier to automatic parcel machines can be collected by the recipient within 48h. Therefore, contrary to traditional courier

services delivery and collection do not occur at the same time. Although parcels cannot be relocated within 48h from the automatic parcel

machine to which they have been delivered, the Group assessed that control over the service is transferred upon collection of the parcel by the

recipient, which triggers revenue recognition.

Services are provided to customers through a ‘pay-as-you-go’ model in accordance with standard price lists or based on long-term framework

delivery contracts as well as subscription contracts for 12 or 24 months. Performance obligation under the framework contract – delivery of parcels

– becomes binding once delivery is requested by the customer. These contracts do not require a minimum shipment volume and are generally

multi-year rolling contracts with a one-month notice period for termination. Remuneration for services provided under the long-term contracts is

determined on the basis of actual deliveries in the period and agreed prices.

Prices per parcel can be differentiated based on the delivery method and certain thresholds in respect of the number, size and weight of the

parcels. Pricing is typically reviewed on an annual basis.

For subscription contracts, the customer pays an agreed fixed monthly fee for deliveries of a defined number of parcels per month. The

performance obligation under the subscription contract – delivery of a parcel – becomes binding once delivery is requested by the customer.

Unused deliveries (the breakage) do not roll forward to the next month and therefore the Group recognises the breakage amount as revenue at

the month-end.

Services may be prepaid or billed at the end of the month. There is no significant financing component in the contracts as payment terms are

relatively short – from 14 up to 90 days. Transaction prices for some contracts may vary due to contractual penalties (variable consideration),

resulting in lower revenue. However, this does not represent a significant adjustment. Some contracts with major customers include consideration

payable for distinct marketing services provided on behalf of the Group. This is accounted for separately from revenue. If consideration is payable

for services that are not distinct it decrease transaction prices accordingly.

Deliveries by couriers and deliveries to APM may be regulated by one contract with a customer. However, they are alternatives to each other and

are deemed to be separate performance obligations.

In addition to core services, the Group might also provide some minor services for an additional fee (e.g. express delivery). For such bundles, the

Group assessed that contractual prices represent stand-alone selling prices and consideration is not reallocated between services.

Revenues from courier services and out-of-home services make up 98% of Group Revenues.

161

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

12. Revenue and costs continued

Services Nature, the timing of satisfaction of performance obligations and significant payment terms

Sale of APMs and other equipment Revenue from the sale of APMs is recognised at a point in time when the significant risks and rewards of ownership of a promised asset are

transferred. In the absence of the specific conditions in the arrangements between the parties (e.g. Incoterms) revenue from the sale is recognised

when goods are physically delivered to the customer. The majority of contracts are however realised in accordance with EXW incoterms.

Other services (marketing,

installations, maintenance

The Group recognises revenue from marketing and maintenance services when those services are duly performed. If the revenue is a monthly

maintenance fee it is recorded over time on a straight-line basis.

The Group recognises revenue from installation services at a point in time i.e. when installation is complete.

The table below contains information on receivables and liabilities resulting from contracts with customers.

Note 2021 2020

Receivables, included in ‘Trade and other receivables’ 24 799.3 407.6

Revenues from courier services and out of home services make up 98% of Group Revenues.

Upon receipt of a prepayment from a customer, the Group recognises a contract liability in the amount of the prepayment for its performance obligation to deliver parcels in the future.

The contract liability is gradually derecognised (and respective revenue is recognised) as services are provided to a customer. The settlement period for prepaids generally does not exceed

12 months, whereas the majority are settled within a few months. There is insignificant revenue from breakage amounts, as customers generally exercise all their contractual rights related

to prepaids.

For explanation regarding comparative period please refer to note 2.2.

162

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

12. Revenue and costs continued

12.2. Financial income and expenses

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Foreign exchange profit 15.4 –

Interest income 0.1 0.1

Other finance income 0.6 –

Total finance income 16.1 0.1

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Foreign exchange losses 4.5 60.5

Interest expense 121.4 73.5

Bank charges 2.0 2.3

Commissions on loans and borrowings – 24.6

Deposits, fees and commissions 1.8 1.1

Derivative instruments valuation – 2.5

Total finance costs 129.7 164.5

For explanation regarding comparative period please refer to note 2.2.

12.3. Depreciation and amortisation

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Depreciation of property, plant and equipment 532.7 330.1

Amortisation of intangible assets 77.0 26.0

Depreciation and amortisation – continued

operations

609.7 356.1

Assigned to direct cost 485.2 299.5

Assigned to general and administrative expenses 124.5 56.6

Total 609.7 356.1

12.4. Employee benefit costs

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Payroll 400.6 190.4

Social security contributions 100.4 44.8

Share based payment 92.5 10.1

Total employee benefit costs 593.5 245.3

Assigned to direct cost 286.5 104.9

Assigned to general and administrative expenses 307.0 140.4

Total 593.5 245.3

163

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

13. Income tax

13.1. Income tax in profit or loss

For the period of 12 months ended 31 December, 2021 the effective tax rate for theGroup was 31.1% and for the comparative period of 12 months ended 31 December, 2020 the effective tax

rate for the Group was 24.1%. In 2021, statutory tax rates for the Group’s companies ranged from 19% in Poland and Great Britain to 31.4% inItaly.

The management periodically reviews the approach adopted in the preparation of tax returns where the applicable tax regulations are subject to interpretation. When justified, a provision is

created for the expected tax payable to tax authorities.



Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Current income tax expense 237.1 127.4

Deferred income tax expense (15.6) (15.8)

Income tax expense – continued operations 221.5 111.6

Current income tax expense – 0.2

Income tax expense – discontinued operations – 0.2

For explanation regarding comparative period please refer to note 2.2.

164

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

13. Income tax continued

13.2. Reconciliation of effective tax rate



Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Profit (loss) before tax 712.8 463.1

Tax using the Group’s domestic tax rate

24.9% 177.5 24.9% 115.3

Effect of tax rates in foreign jurisdictions (6.7%) (47.5) (6.1%) (28.3)

Tax-exempt income (0.8%) (5.9) (0.9%) (4.2)

Non-deductible expenses of which: 6.0% 43.0 3.5% 16.3

Share based payments costs: 2.5% 18.2 0.4% 1.9

Other non-deductible expenses: 3.5% 24.8 3.1% 14.4

Deferred tax asset for tax losses not recognised 8.5% 60.5 0.6% 3.0

Derecognition of deferred tax asset for tax losses carried forward and other temporary differences (0.9%) (6.7) 0.8% 3.8

Deferred tax written off as a result of the subsidiary liquidation – – 0.9% 4.0

Other 0.1% 0.6 0.4% 1.7

Income tax expense 221.5 111.6

Effective tax rate 31.1% 24.1%

The tax rate was higher in 2021 due to higher unrecognised deferred tax assets for tax losses reported in UK, Italy and Luxembourg, and a higher proportion of non-tax deductible costs, i.e.

mainly costs related to the Management Incentive Plan (MIP) and Long Term Incentive Plan (LTIP). For explanation please refer to note 31.

For explanation regarding comparative period please refer to note 2.2.

165

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

13. Income tax continued

13.3. Change in deferred tax assets and liabilities



Balance as at

31-12-2021

Reconciliation

of movements

to profit or loss

2021

Subsidiary

acquisition

Balance

as at

31-12-2020

Reconciliation

of movements

to profit or loss

2020

Deferred tax assets    

Impairment allowance for trade and other receivables and inventories 15.1 (0.1) – 15.0 3.1

Provisions and accruals 45.9 (16.3) (7.8) 31.8 (13.5)

Lease liabilities 251.0 (87.5) (52.1) 111.4 (66.9)

Property, plant and equipment and intangible assets 1.9 (1.9) – – 12.2

Deferred income 3.0 (0.8) – 2.2 (0.8)

Interest accrued 0.5 (0.2) – 0.3 1.2

Foreign exchange differences 7.8 0.9 – 8.7 (8.7)

Other items 2.6 (1.3) – 1.3 0.2

Tax losses carried forward 9.6 1.8 (2.1) 9.3 15.9

Total 337.4 (95.4) (62.0) 180.0 (57.3)

Net presentation (179.6) 111.7 – (67.9) 23.3

Net deferred tax assets 157.8 16.3 (62.0) 112.1 (34.0)

– to be settled within 12 months 71.3  67.3 

– to be settled over 12 months 86.5  44.8 

Deferred tax liability    

Property, plant and equipment and intangible assets 222.1 70.8 50.8 16.9 4.0

Right-of-use assets 233.7 9.0 224.7 83.6 54.4

Interest accrued 0.1 – – 0.1 (1.5)

Other items 2.3 – – 2.3 0.9

Total 458.2 79.8 275.5 102.9 41.5

For explanation regarding comparative period please refer to note 2.2.

166

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)



Balance as at

31-12-2021

Reconciliation

of movements

to profit or loss

2021

Subsidiary

acquisition

Balance

as at

31-12-2020

Reconciliation

of movements

to profit or loss

2020

Net presentation (179.6) (111.7) – (67.9) (23.3)

Net deferred tax liabilities 278.6 (31.9) 275.5 35.0 18.2

– to be settled within 12 months 2.4 2.4

– to be settled over 12 months 276.2 32.6

Net effect (15.6) 213.5 (15.8)

13.4. Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items. In the Management’s judgment, it was assessed that it is not probable that future taxable profit will be

available against which the Group will be able to use benefits therefrom.

Unrecognised deferred tax assets 2021 2020

Gross amount Tax effect (24.9%) Gross amount Tax effect (24.9%)

Tax losses carried forward (the UK, IT and Luxembourg) 324.9 80.9 294.0 73.2

Total unrecognised deferred tax assets 324.9 80.9 294.0 73.2

    

Tax losses carried forward for which no deferred tax assets were recognised 2021 Expiry date 2020 Expiry date

Never expire 55.7 – 294.0

Will expire 100.2 2038 – –

Will expire 5.9 2037 –

Will expire 108.4 2024

Will expire 54.7 2023

Total tax losses carried forward for which no deferred tax asset was recognised 324.9  294.0 

For explanation regarding comparative period please refer to note 2.2.

13. Income tax continued

13.3. Change in deferred tax assets and liabilities continued

167

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

14. Discontinued operations

Following strategic decisions dated 2017 to place greater focus on a few best performing

locations of operations, the Management Board of Integer.pl S.A. (predecessor parent)

committed to a plan to withdraw from foreign markets that had underperformed.

Following the loss of control in InPost France SAS under liquidation, Group classifies the

following companies as discontinued operations: Giverty Holding Limited, Granatana

Limited and M.P.S.L. Ltd.

The financial result of discontinued operations is presented separately from the financial

results of continued operations – for all of the periods covered by the consolidated

financial statements.

Result of discontinued operation

 31-12-2021 31-12-2020

Sales revenue – –

Other operating income 0.7 –

Operating expenses 0.2 1.9

Other operating expenses, including net impairment

losses on trade and other receivables

0.3 0.2

Total operating expenses, including net impairment

losses on trade and other receivables

0.5 2.1

Operating loss 0.2 (2.1)

Finance income 0.2 1.0

Finance costs 0.1 –

Profit/(loss) before tax 0.3 (1.1)

Income tax expense – 0.2

Profit/(loss) from activities of discontinued operations,

net of tax

0.3 (1.3)

Profit/loss on disposal of discontinued operations – –

For explanation regarding comparative period please refer to note 2.2.

 31-12-2021 31-12-2020

Profit/(loss) from discontinued operations, net of tax,

attributable to:

0.3 (1.3)

Owners of the Company 0.3 (1.3)

Non-controlling interests – –

Cash flows from discontinued operation

 31-12-2021 31-12-2020

Net cash flows from operating activities 1.0 (2.5)

Net cash flows from investing activities – –

Net cash flows from financing activities – –

Net cash flows 1.0 (2.5)

15. Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity

holders of the parent by the weighted average number of ordinary shares outstanding

during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary

equity holders of the parent (after adjusting for interest on convertible preference shares)

by the weighted average number of ordinary shares outstanding during the year plus

the weighted average number of ordinary shares that would be issued on conversion of

all the dilutive potential ordinary shares into ordinary shares. The LTIP programme has

dilutive effect, however, the number of ordinary shares contingently issuable depends on

future adjusted EBITDA for the year 2023. Because earnings may change in a future period,

the calculation of basic EPS does not include such contingently issuable ordinary shares

until the end of the contingency period because not all necessary conditions have been

satisfied.

168

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

15. Earnings per share (EPS) continued

The following table reflects the profit and share information used in the basic and diluted

EPS calculations:



Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Profit attributable to ordinary equity holders

of theparent:



Continuing operations 491.3 351.5

Discontinued operations 0.3 (1.3)

Profit attributable to ordinary equity holders

of theparent for basic EPS

491.6 350.2

Effect of dilution – –

Profit attributable to ordinary equity holders

of the parent adjusted for the effect of dilution

491.6 350.2

Weighted average number of ordinary shares

for basic/diluted EPS

500,000,000 508,772,013

Basic earnings per share (in PLN) 0.98 0.69

Diluted earnings per share (in PLN) 0.98 0.69

Basic/Diluted earnings per share (in PLN) –

Continuing operations

0.98 0.69

As discussed, the Group had undergone the reorganisation during the period where new

shares were issued to existing shareholders in exchange for the shares in Integer.pl. S.A. For

the purpose of calculation of EPS a constant exchange ratio was used.

For explanation regarding comparative period please refer to note 2.2.

The weighted average number of shares takes into account the weighted average effect of changes in shares

during the year.



Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Weighted average number of shares of Integer.pl

outstanding during the period pre-reorganisation

17,541, 213 17,851,650

Share conversion ratio

28.5 28.5

Number of shares converted to InPost shares

500,000,000 508,772,013

Weighted average number of InPost shares

outstanding during the period post-reorganisation

500,000,000 Not applicable

Weighted average number of ordinary shares

for basic/diluted EPS at the end of the period

500,000,000 508,772,013

16. Dividends paid and proposed for payment

In 2021 and until the date of authorisation of these consolidated financial statements for

issue, no dividends were paid or proposed for payment.

169

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

17. Share capital

Series Face value

Number of

as at 31-12-2021

Number of

31-12-2020

Normal shares EUR 0.01 each 500,000,000 3,100,000

500,000,000 3,100,000

On 26 January, 2021, the Supervisory Board allowed the Management, in accordance with

the articles ofassociation, to increase the share capital to the value of EUR5,000,000.

The increase was covered by acontribution of Integer.pl S.A. shares and InPost Technology

S.à.r.l. shares from AI Prime Bidco. Please see also the detailed information in note 2.2

regarding the Group reorganisation.

18. Capital management

The Group’s policy is to maintain a strong capital base so as to maintain market,

investor and creditor confidence and to sustain the future development of the business.

Management monitors capital four times a year including analysis of the cost of capital

and respective risks associated with each source of the capital. The Group aims to ensure

that its companies are able to continue operating while maximising profitability for

shareholders by optimising the debt-to-equity ratio and maximisation of the return

on capital.

The capital of the Group comprises debt including loans and borrowings (presented in

note 26), lease liabilities (presented in note 21.2) and capital attributable to shareholders

(including: shares issued, capital reserve and retained earnings). Management seeks to

maintain a balance between the higher returns that might be possible with higher levels

of borrowing and the advantages and security afforded by a sound capital position. The

weighted-average interest expense on interest-bearing borrowings was 3.51% (2020:

7.08%).

For explanation regarding comparative period please refer to note 2.2.

The Group monitors capital using a ratio of ‘net debt’ to ‘equity’. Net debt is calculated

as total liabilities (as shown in the statement of financial position) less cash and cash

equivalents. Total equity is calculated as the sum of equity presented in the consolidated

statement of financial position and net debt.

The Group’s net debt to equity ratio as at 31 December, 2021, and 31 December, 2020, was

as follows:



31 December,

2021

31 December,

2020

Total liabilities 7, 299.8 1,842.7

Less: cash and cash equivalents (493.2) (144.2)

Net debt 6,806.6 1,698.5

Equity (6.9) 638.1

Net debt to equity – 2.66

The Group’s capital management, among other things, aims to ensure that it meets

financial covenants attached to the interest-bearing loans and borrowings that define

capital structure requirements. Breaches in meeting the financial covenants would permit

creditors to immediately call loans and borrowings. There have been no breaches of the

financial covenants of any interest-bearing loans and borrowings in the presented periods.

No changes were made in the objectives, policies or processes for managing capital during

the years ended 31 December, 2021 and 31 December, 2020.

170

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

19. Intangible assets

Customer

relationship Brand Trademarks

Development

costs Software

Intangible

assets in

progress Total

Cost at 01-01-2021 – – 6.0 153.7 146.6 14.4 320.7

Additions – – 0.6 13.3 15.6 58.5 88.0

Acquisition of subsidiary 700.4 170.8 0.2 – 9.2 5.2 885.8

Disposal – – – (16.8) (2.9) – (19.7)

Effect of movements in exchange rates – – – 0.5 (0.1) – 0.4

Cost at 31-12-2021 700.4 170.8 6.8 150.7 168.4 78.1 1,275.2

Accumulated amortisation at 01-01-2021 – – 1.1 97.1 63.9 – 162.1

Amortisation for the period 36.5 – 0.4 15.9 24.3 – 77.1

Disposal – – – (9.4) (0.6) – (10.0)

Effect of movements in exchange rates – – – 0.1 – – 0.1

Accumulated amortisation at 31-12-2021 36.5 – 1.5 103.7 87.6 – 229.3

Impairment losses at 01-01-2021 – – – 9.6 7.5 – 17.1

Impairment loss – – – 0.6 – – 0.6

Reversal of impairment loss – – – – – – –

Disposal – – – (7.5) (0.9) – (8.4)

Effect of movements in exchange rates – – – – – – –

Impairment losses at 31-12-2021 – – – 2.7 6.6 0.0 9.3

Carrying amount at 31-12-2021 663.9 170.8 5.3 44.3 74.2 78.1 1,036.6

171

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

19. Intangible assets continued

Trademarks

Development

costs Software

Intangible

assets in

progress Total

Cost at 01-01-2020

6.0 146.7 145.9 6.4 305.0

Additions – 7.2 29.9 9.2 46.3

Disposal – – (29.0) (1.2) (30.2)

Other movements – (0.3) (0.2) – (0.5)

Effect of movements in exchange rates – 0.1 – – 0.1

Cost at 31-12-2020

6.0 153.7 146.6 14.4 320.7

Accumulated amortisation at 01-01-2020

1.0 82.1 63.0 – 146.1

Amortisation for the period 0.1 15.0 10.9 – 26.0

Disposal – – (9.7) – (9.7)

Other movements – – (0.3) – (0.3)

Effect of movements in exchange rates – – – – –

Accumulated amortisation at 31-12-2020

1.1 97.1 63.9 – 162.1

Impairment losses at 01-01-2020

– 10.9 26.8 (0.8) 36.9

Impairment loss – 0.6 – – 0.6

Reversal of impairment loss – (1.1) – – (1.1)

Disposal – – (19.3) – (19.3)

Other movements – (0.8) – 0.8 –

Effect of movements in exchange rates – – – – –

Impairment losses at 31-12-2020

– 9.6 7.5 – 17.1

Carrying amount at 31-12-2020

4.9 47.0 75.2 14.4 141.5

For explanation regarding comparative period please refer to note 2.2.

172

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

19. Intangible assets continued

Significant judgments

In determination of the value of customer relations period of 19 years was determined with the attrition rate at 14%. Depreciation should reflect the pattern in which the economic benefits

embodied in the assets are consumed which might indicate diminishing depreciation to reflect the erosion of the acquired customer base. However, the Group decided to use straight line

depreciation method over period of 8 years mainly because of uncertainty about the future economic benefits that might arise several years in the future and the difficulty in distinguishing

them from cash flows that have been generated by internally–generated assets of the business. The group decided to a straight–line method over a shorter period so that at all points the

amortised carrying amount of the asset is below the curve for the expected benefits. As long as the benefits expected to arise in the period after the customer relations are fully amortised

are not expected to be significant, this method will give a reasonable approximation of the consumption of economic benefits.

Recoverability of development costs

The services related to development work are performed by InPost Technology S. à r.l. Development costs include mainly software and key IT systems. Due to the relatively specific nature

of the Group’s operations, most intangible assets are developed internally, including software. The software is developed in cooperation with external IT solution providers. The Group is

constantly looking for new solutions to increase the efficiency of processes or to improve/implement new services, therefore various research and development projects (and sub-projects)

are carried out at various stages. Based on management review there are no impairment indications on Intangible assets in progress.

The most significant development costs are:

• Software: Trucker Transition Programme, Workflow Programme, Pricing Tool and InPost Mobile Application

• Development costs: product design of refrigerated locker machines (“RLM’s”) and banking parcel machines as well as documented business processes related to courier and logistics operations

• Intangible assets in progress: outlays related to the creation of the new TMS sales and logistics system.

The Management Board has not identified any premises that would indicate an impairment of development works.

20. Property, plant and equipment

Property, plant and equipment

Land and

buildings

Machinery and

equipment Vehicles Other RoU

Assets under

construction

Total

Cost at 01-01-2021 14.6 1,280.7 6.5 16.5 942.0 75.7 2,336.0

Additions

13.9 693.1 3.7 9.1 – 151.8 871.5

Additions – leases

– – – – 772.0 – 772.0

Acquisition of subsidiary 10.2 120.5 0.1 0.4 200.8 56.1 388.1

Termination (0.8) (26.7) – (1.0) (7.7) (3.4) (39.6)

Other movements

167.7 – (213.1) (45.4)

Effect of movements in exchange rates – 11.8 – – 1.0 (0.1) 12.7

Assets under construction compromise mainly from not yet deployed APMs and materials for production of APMs.

Additions of machinery and equipment are mainly deployment of new APMs, additions of Assets under construction are mainly production materials for production of new APMs and produced APMs not yet deployed.

Additions of leases compromises new leases, mainly ground (for the purpose of APMs deployments) and new warehouses. On top of that additions are also generated by ground agreements renewals and adjustments of the value of the right of

use in connection with the signed annexes to lease agreements.

Other movements in 2020 are mainly related to the adjustments of the value of the right of use in connection with the signed annexes to lease agreements and property transfer of assets after lease period end.

173

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Cost at 31-12-2021 37.9 2,247.1 10.3 25.0 1,695.0 280.1 4,295.4

Property, plant and equipment

Land and

buildings

Machinery and

equipment Vehicles Other RoU

Assets under

construction

Total

Accumulated depreciation at 01-01-2021 3.5 357.9 0.8 7.0 377.5 – 746.7

Depreciation for the period 4.2 186.2 1.0 6.6 334.6 – 532.6

Termination (0.4) (11.7) – (0.6) (7.7) – (20.4)

Other movements

48.3 – (137.3) – (89.0)

Effect of movements in exchange rates – 3.4 – – – – 3.4

Accumulated depreciation at 31-12-2021 7.3 584.1 1.8 13.0 567.1 – 1,173.3

Impairment losses at 01-01-2021 – 13.5 – – 4.6 6.1 24.2

Impairment loss – 0.1 – – – – 0.1

Reversal of impairment losses – – – – – (3.7) (3.7)

Termination – (8.5) – – – – (8.5)

Other movements

– – – – – – –

Effect of movements in exchange rates – – – – – – –

Impairment losses at 31-12-2021 – 5.1 – – 4.6 2.4 12.1

Carrying amount at 31-12-2021 30.6 1,657.9 8.5 12.0 1,123.3 277.7 3,110.0

Assets under construction compromise mainly from not yet deployed APMs and materials for production of APMs.

Other movements in 2020 and 2021 are mainly related to the adjustments of the value of the right of use in connection with the signed annexes to lease agreements and property transfer of assets after lease period end.

20. Property, plant and equipment continued

174

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Property, plant and equipment

Land and

buildings

Machinery and

equipment Vehicles Other RoU

Assets under

construction Total

Cost at 01-01-2020

10.6 873.6 1.4 10.3 497.1 70.4 1,463.4

Additions 4.2 415.1 5.1 6.5 – 5.1 436.0

Additions – leases – – – – 511.7 – 511.7

Termination (0.2) (15.3) – (0.4) (55.0) – (70.9)

Other movements

– 1.1 – – (12.4) – (11.3)

Effect of movements in exchange rates – 6.3 – 0.1 0.6 0.2 7. 2

Cost at 31-12-2020

14.6 1,280.8 6.5 16.5 942.0 75.7 2,336.1

Accumulated depreciation at 01-01-2020

2.3 262.6 0.5 4.2 169.6 – 439.2

Depreciation for the period 1.2 103.0 0.3 3.2 222.4 – 330.1

Termination – (12.7) – (0.4) (11.0) – (24.1)

Other movements

– 1.9 – – (3.9) – (2.0)

Effect of movements in exchange rates – 3.1 – – 0.4 – 3.5

Accumulated depreciation at 31-12-2020

3.5 357.9 0.8 7.0 377.5 – 746.7

Impairment losses at 01-01-2020

– 14.9 – – 6.6 4.7 26.2

Impairment loss – 0.8 – – – 1.2 2.0

Reversal of impairment losses – (0.4) – – – – (0.4)

Termination – (1.8) – – (2.0) – (3.8)

Other movements

– – – – – – –

Effect of movements in exchange rates – – – – – 0.2 0.2

Impairment losses at 31-12-2020

– 13.5 – – 4.6 6.1 24.2

Carrying amount at 31-12-2020

11.1 909.3 5.7 9.5 559.9 69.6 1,565.1

For explanation regarding comparative period please refer to note 2.2.

Other movements in 2020 are mainly related to the adjustments of the value of the right of use in connection with the signed annexes to lease agreements.

20. Property, plant and equipment continued

175

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

20. Property, plant and equipment continued

Impairment testing for CGU related to foreign operations

In 2021 and 2020, the Group observed that foreign entities (Italy and the UK) incurred

operating losses, which was assessed as an impairment indicator, and therefore the

Group tested non-financial assets related to these foreign branches and estimated the

recoverable amount of individual units generating operating losses.

The recoverable amount of the CGU was estimated based on their fair value less cost of

disposal. The major assets of the CGUs are property, plant and equipment (APMs) and

since there are no other operations then related with APMs (nor related assets) the

Group assessed that the fair value less costs of disposal of APMs represents a reasonable

estimation of the CGU’s fair value less costs of disposal of the CGU’s. The value in use of the

CGU was not determined because the Group assessed that there is no reason to believe

that value in use materially exceeds its fair value less costs of disposal for operations

that are discontinued. Some of the tested CGUs are continued foreign operations that

generate revenue (UK, Italy) and their value in use potentially could be determined.

However, operations in the UK and Italy currently generate operating losses as they are in

the process of strategic changes of their business model, which aims to improve results in

subsequent periods. In the light of the above the Group determined that the value in use

would be lower than fair value less cost of disposal and therefore recoverable amount was

determined based on fair value less costs of disposal of CGU.

When calculating the fair value of the parcel machine after it was brought to Poland, the

WACC ratio was used at the level of 8.48% (12.88% in 2020) and the annual growth rate

of 0%. Change in WACC is result of the company IPO which resulted in access to capital.

The following is a summary of the total recoverable amount and carrying amount at the

end of each year for all tested foreign-related cost-generating units:

All units tested 31-12-2021 31-12-2020

Recoverable value 1,217.5 196.1

Balance sheet value 194.5 63.6

Surplus 1,023.0 132.5

In the years 2020-2021 there were no changes in the methodology used.

For explanation regarding comparative period please refer to note 2.2.

176

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

21. Leases

21.1. Right-of-use assets

Right-of-use assets are presented in Property, plant and equipment. The below table presents a disaggregation of the right-of-use assets by class of underlying asset:

Land and

buildings

Machinery and

equipment Vehicles Other Total

Cost at 01-01-2021 562.8 190.1 189.1 – 942.0

Additions 636.1 12.4 123.5 – 772

Subsidiary acquisition 189.0 7.4 3.9 0.5 200.8

Disposals (7.7) – – – (7.7)

Other movements

(35.1) (170.8) (7.0) (0.2) (213.1)

Effect of movements in exchange rates 1.4 (0.1) – (0.3) 1.0

Cost at 31-12-2021 1,346.5 39.0 309.5 – 1.695.0

Accumulated depreciation at 01-01-2021 191.7 63.6 122.2 – 377.5

Depreciation for the period 210.4 26.2 97.9 0.1 334.6

Disposals (7.7) – – – (7.7)

Other movements

(44.2) (87.3) (5.7) (0.1) (137.3)

Effect of movements in exchange rates – – – – –

Accumulated depreciation at 31-12-2021 350.2 2.5 214.4 – 567.1

Impairment losses at 01-01-2021 – 4.6 – – 4.6

Impairment losses at 31-12-2021 – 4.6 – – 4.6

Carrying amount at 31-12-2021 996.43 31.9 95.1 – 1.123.3

Other movement in 2021 are primarily related to the right to value adjustments use in connection with signed annexes to lease agreements.

177

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

Land and

buildings

Machinery and

equipment Vehicles Other Total

Cost at 01-01-2020

269.5 139.0 88.1 0.5 497.1

Additions 343.5 51.7 116.5 – 511.7

Disposals (39.0) (0.9) (14.6) (0.5) (55.0)

Other movements

(11.8) 0.3 (0.9) (12.4)

Effect of movements in exchange rates 0.6 – – – 0.6

Cost at 31-12-2020

562.8 190.1 189.1 – 942.0

Accumulated depreciation at 01-01-2020

91.8 36.2 41.6 – 169.6

Depreciation for the period 109.4 30.8 82.2 – 222.4

Disposals (9.1) (0.9) (1.0) – (11.0)

Other movements

(0.8) (2.5) (0.6) – (3.9)

Effect of movements in exchange rates 0.4 – 0.4

Accumulated depreciation at 31-12-2020

191.7 63.6 122.2 – 377.5

Impairment losses at 01-01-2020

– 6.6 – – 6.6

Impairment losses at 31-12-2020

– 4.6 – – 4.6

Carrying amount at 31-12-2020

371.1 121.9 66.9 – 559.9

For explanation regarding comparative period please refer to note 2.2.

Other movement in 2020 are primarily related to the right to value adjustments use in connection with signed annexes to lease agreements.

21. Leases continued

178

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

21. Leases continued

21.2. Leasing liabilities

Leasing liabilities, along with an analysis of maturity, are presented in the table below.

For a detailed description of changes in lease liabilities please refer to note 28.

Balance as at 31-12-2021 31-12-2020

Total 1,192.8 536.6

up to 1 year 359.8 232.7

from 1 to 3 years 354.5 131.6

from 3 to 5 years 278.0 116.9

more than 5 years 200.5 55.4

21.3. Amounts recognised in the statement of cash flows

Balance as at 31-12-2021 31-12-2020

Payment of principal portion of the lease liability 302.1 204.9

Lease interest paid 25.6 21.1

Total 327.7 226.0

The Group took advantage of IFRS 16 exception for short term leases and had not

recognised 5 rental agreements in 2021 under IFRS 16. The total payments for those

agreements in 2021 amounted to PLN 1.8 m.

In 2021, the Group signed 20 contacts for the rental of warehouses and branch spaces that

will have an impact on the future cash outflow in the following amounts: the year 2022 –

PLN 9.9 m, 2023 – PLN 25.4 m, 2024 – PLN 48.8 m.

For explanation regarding comparative period please refer to note 2.2.

22. Assets pledged as security for liabilities

As of financial year ended 31 December, 2021, the Group had no assets pledged and

securities for liabilities.

In accordance with provisions of the loan agreement of 6 September, 2018, assets of the

Integer Group Companies constituted security for this agreement. In accordance with

provisions of the agreement, collateral in 2020 was as follows:

• shares of Integer.pl S.A., InPost Sp. z o.o., InPost Paczkomaty Sp. z o.o. and Integer Group

Services Sp.z o.o.;

• cash in bank accounts;

• intra-Group loans; and

• intra-Group claims.

The value of all assets pledged as security in the statement of financial position is as follows

Item in the statement of financial positions 31-12-2020

Cash and cash equivalents 144.2

Total assets pledged as collateral 144.2

179

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

23. Other assets

31-12-2021 31-12-2020

Non-current 53.8 0.8

Prepaid services 1.9 0.8

Prepayments for property, plant and equipment

and intangible assets

51.9 –

Current 34.1 70.4

Policies, other insurance 0.5 1.9

Prepaid services 33.6 5.0

Prepayments for property, plant and equipment

and intangible assets

– 63.5

As of 31 December, 2020, the Group presented the prepayments made for the acquisition

of property, plant and equipment within Other assets (current). Starting from 2021, the

Group changed the presentation and the prepayments made are included in the line

Other assets (non-current). In the management’s view, this presentation reflects the

expectation relating to the nature as well as the future use of these prepayments, i.e.

acquisition of non-current assets used for the Group’s needsinstead of future potential

resale of the assets acquired as it took place in previous years.

For explanation regarding comparative period please refer to note 2.2.

24. Trade and other receivables

31-12-2021 31-12-2020

Trade receivables 799.3 407.6

Other receivables 127.8 27.1

Trade and other receivables 927.1 434.7

Trade receivables are non-interest bearing and usually have a maturity of 7-90 days.

Receivables from Allegro Group were responsible for 19.7% of the Group’s trade receivables

for the 12 months ended 31 December, 2021 and 32.6% of the Group’s trade receivables for

the 12 months ended 31 December, 2020.

Trade receivables 31-12-2021 31-12-2020

Trade receivables at fair value through profit or

loss (designated to be subject to non-recourse

factoring arrangements)

– 83.3

Trade receivables (gross) at amortised cost 882.6 401.1

Expected credit losses – individual approach (76.6) (74.0)

Expected credit losses – a collective approach (6.7) (2.8)

Total trade receivables 799.3 407.6

Trade receivables at fair value through profit or loss (designated to be subject to non-

recourse factoring arrangements).

Trade receivables are measured at fair value based on the pricing terms of factoring

arrangements regarding the transfer of receivables, which are assessed by the

management as reflecting their fair value as of the reporting date.

180

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

24. Trade and other receivables continued

Trade receivables (gross) at amortised cost

Set out below is the movement in the allowance for expected credit losses on trade

receivables based on collective approach and individual approach:

31-12-2021 31-12-2020

Opening balance 76.8 87.8

Decrease – utilisation – (6. 5)

Expected/incurred credit losses recognised/

(reversed)

6.4 (4.5)

Exchange rate difference 0.2 –

Closing balance 83.4 76.8

Movements in the allowance for expected credit losses on trade and other

receivables

The total impact of the allowance movements on profit or loss for 2021 amounted to PLN

6.4 m – as a net decrease of profit for 2021 (2020 had an opposite effect on the result in the

amount of PLN 4.5 m).

For explanation regarding comparative period please refer to note 2.2.

Reconciliation of trade receivables allowance movements to profit or loss is

presentedbelow:

31-12-2021 31-12-2020

Impairment loss (gain) – trade receivables 6.4 (4.5)

Impairment loss (gain) – other non-current

receivables

– –

Impairment loss (gain) – other receivables (financial

assets)

– –

Total impact on profit or loss for the year 6.4 (4.5)

Of which:

Continued operations (impairment of trade

receivables and other financial assets)

6.4 (3.9)

Discontinued operations – (0.6)

31-12-2021

Trade receivables

Current

0-60

days

61-365

days Total

The expected credit loss rate 0.1% 0.3% 10.4% 

Estimated gross carrying amount at default 698.2 113.3 9.0 820.5

Expected credit loss 0.7 0.4 0.9 2.0

181

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

24. Trade and other receivables continued

The expected credit loss (individual approach) is calculated as the expected gross carrying

amount of the financial asset at default date multiplied by expected credit loss rate,

the product of the probability of default index (PD) calculated for each ageing bucket

(0.95% for current receivables, 3.19% for receivables between 0-60 days and 100% for the

receivables over 61 days) and loss given default (LGD) index of 10.4%.

31-12-2020

Trade receivables

Current

0-60

days

61-365

days Total

The expected credit loss rate 0.3% 0.6% 16.8% 

Estimated gross carrying amount at default 389.3 14.6 5.7 409.6

Expected credit loss 1.1 0.1 1.0 2.2

24.1. Other receivables

31-12-2021 31-12-2020

Financial assets 104.1 4.7

Receivables from the settlement of the cash-on-

delivery option

– –

Deposits 104.1 4.7

Non-financial assets 23.7 22.4

Receivables from the state 5.8 5.7

Other 17.9 16.7

Total other receivables 127.8 27.1

The significant increase to deposits is related to Mondial Relay acquisition.

For explanation regarding comparative period please refer to note 2.2.

25. Cash and cash equivalents

31-12-2021 31-12-2020

Cash in bank and on hand 493.2 144.2

Including cash in VAT accounts (restricted) 2.9 8.2

Total cash 493.2 144.2

Including in currency: 336.4 25.9

Cash in EUR converted to PLN 312.0 21.2

Cash in GBP converted to PLN 23.1 4.2

Cash in USD converted to PLN 1.3 0.4

Cash in other foreign currencies converted

to PLN

– 0.1

Cash on bank accounts meets the SPPI test and the business model test “held to collect”,

therefore it is measured at amortised cost including an impairment loss determined in

accordance with the expected credit loss model. Management of the Group has assessed

that the provision for expected credit losses related to cash and cash equivalents would

not be material in any of the periods presented.

Rating

Amount as at

31-12-2021

Amount as at

31-12-2020

Bank 1 AAA/baa1 171.4 52.2

Bank 2 A+/n/a 123.8 -

Bank 3 AA-/Aa3 123.6 -

Bank 4 BBB/A2 27.6 68.8

Bank 5 A/Baa1 22.7 4.2

Bank 6 BBB+/baa1 15.2 -

Bank 7 BBB+/baa2 6.7 18.3

Bank 8 n/a/baa2 2.2 0.7

Total 493.2 144.2

182

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

26. Loans and borrowings

31-12-2021 31-12-2020

Current liabilities 194.4 23.7

Loans from related parties – 4.8

Bank loans 88.9

Bonds 86.2 0.1

Loans secured by fixed assets 19.3 18.8

Non-current liabilities 4,545.8 743.4

Loans from related parties – 686.0

Bank loans 1,857.0 –

Bonds 2,650.6 –

Loans secured by fixed assets 38.2 57.4

Total 4,740.2 767.1

The most of loans and all bonds are paid as lump sum in due date.

For explanation regarding comparative period please refer to note 2.2.

183

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

26. Loans and borrowings continued

On 29 June, 2021 InPost S.A. announced the closing of the bond offering of EUR 490 m. On 8 July, 2021 InPost S.A. announced the closing of the bond offering of PLN 500 m. The table below

shows the details of new bonds. The table below shows the details of new loans and borrowings:

Lenders Type Currency Agreement Purpose Changes Interest rate

Nominal

value

Carrying

amount 2021 Due date Covenants

Banks

Term

Facility

PLN

Agreement of

25/01/2021 IPO

Facilities Agreement

Not specified

On 12 October, 2021 DNB

Bank Polska S.A. was

replaced in the bank

consortium by Credit

Agricole Bank Polska S.A.

WIBOR 1M

+ 2%

PLN 1,950 m 1,945.9

28-01-2026

Financial covenant under

the senior facilities to

maintain a maximum

leverage ratio of 4.25×

calculated on basis of

definitions in agreement

Revolving

facility

PLN 800 m 0.0

Senior

Unsecured

Notes

EUR

Agreement

dated 24/06/2021

– Purchase

Agreement

As part of the

financing for the

acquisition of

Mondial Relay SAS

BB/Ba2 – rating 2.25% EUR 490.0 m

2,238.3

(PLN)

(486.6 EUR)

15-07-2027

The Notes will contain

customary covenants for

this type of financing,

with the size of baskets

to be adjusted to reflect

the Issuer’s needs and the

market conditions at the

time of pricing

Senior

Secured

Bonds

PLN

Agreement dated

11/05/2021 – InPost’s

Polish bond

programme

As part of the

financing for the

acquisition of

Mondial Relay

SAS and general

corporate purposes

Ba2 – rating

2.50% +

WIBOR 6M

PLN 500.0 m 498.6 29-07-2027

Consolidated

Net Leverage Ratio

max. 4.25x

Bank Handlowy w Warszawie SA, Bank Pekao SA, BNP Paribas Bank Polski SA, Goldman Sachs Bank Europe SE, JP Morgan AG, mBank SA, PKO BP SA, Barclays Bank Ireland PLC, DNB Bank Polska SA, Erste Group Bank AG, ING Bank Śląski SA,

Credit Agricole Bank Polska S.A. - Term Facility.

184

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

26. Loans and borrowings continued

The table below shows the details of loans and borrowings in 2020

Lenders Currency Agreement Purpose Changes Interest rate

Nominal

value

Carrying

amount

2020 Due date

AI Prime

Bidco S.à r.l.

EUR

Agreement dated

27 September, 2018

Annex concluded

6 September, 2019

Annex concluded

9 April, 2020

Not

specified

Annex increasing financing facility

from EUR 125 million

to EUR 173 million

Annex imp

Annex introducing currency

conversion from EUR48.5million to

PLN220million

EURIBOR01 + margin 6.25% - 6.5%;

interest accrued in each interest period

is payable on the last day of that period

EUR 173

million

360.1 31 March, 2024

PLN

WIBOR + margin 7.75% - 8%;

interest accrued in each interest

period is payable on the last day of

that period (the interest period of PLN

financing lasts 6 months)

224.7 31 March, 2024

AI Prime

Bidco S.à r.l.

EUR

Agreement of

12 April, 2018

Annex concluded

on 31 October, 2019

Annex concluded on

31 December, 2019

Not

specified

Annex changing the interest rate

from a fixed 10% to EURIBOR01 + a

margin of 6.5% per annum

conversion of EUR 2.9 million in

interest into equity

EURIBOR01 + 6.5% margin annually;

interest capitalised at the reporting date

up to the principal amount of the loan

EUR 22.9

million

105.9

31 December,

2028

mBank S.A. PLN

Agreement of

27 September, 2018

The annex concluded

on 6 September, 2019

Annex concluded on

22 June, 2020

Not

specified

an annex increasing the financing

instrument from EUR 12.5 million to

EUR23.5million

an annex changing the currency to

PLN 125 million

WIBOR 1M + 2.5 %

PLN 125

million

0.2

27 September,

2023

Bank Polska

Kasa Opieki

S.A.

PLN

Agreement of

27 September, 2018

The annex concluded

on 6 September, 2019

Annex concluded on

18 June, 2020

Not

specified

an annex increasing the financing

instrument from EUR 12.5 million to

EUR 23.5 million

an annex changing the currency to

PLN 125 million

WIBOR 1M + 2.5 %

PLN 125

million

–

27 September,

2023

Collaterals for loans and borrowing are presented in note 36.

For explanation regarding comparative period please refer to note 2.2.

185

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

27. Other financial liabilities

31-12-2021 31-12-2020

Non-current 835.1 304.0

Lease liabilities 835.1 304.0

Current 357.7 232.7

Lease liabilities 357.7 232.6

Factoring liabilities – 0.1

Total 1,192.8 536.7

For explanation regarding comparative period please refer to note 2.2.

28. Reconciliation of movements of liabilities to cash flows

arising fromfinancing activities

31-12-2021

Loans and

borrowings

Lease

liabilities

Factoring

liabilities

Amount at the beginning of period 767.1 536.6 0.1

Changes from financing cash flows

Proceeds from loans and borrowings 4,665.2 – –

Payment of principal portion of the lease

liability

– (302.1) –

Repayment of loans and credits (659.1) – –

Repayment of interest and commission

on the loan

(124.4) (25.6) –

Total changes from financing cash flows 3,881.7 (327.7) –

Other changes

Lease additions – 841.7 –

Subsidiary acquisition – 198.5 –

Interest cost 90.6 25.7 –

Contract termination - (83.7) -

Other changes - - (0.1)

Effect of netting liabilities and leasing

receivables

– 1.4 –

Effect of changes in foreign exchange

rates

0.8 0.3 –

Total liability-related other changes 91.4 983.9 (0.1)

Amount at the end of the period 4.740.2 1,192.8 –

186

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

28. Reconciliation of movements of liabilities to cash flows

arising fromfinancing activities continued

31-12-2020

Loans and

borrowings

Lease

liabilities

Factoring

liabilities

Amount at the beginning of the period 618.2 275.3 1.4

Changes from financing cash flows

Proceeds from loans and borrowings 84.9 – –

Payment of principal portion of the lease

liability

– (204.9) –

Repayment of loans and credits (8.8) – –

Repayment of interest and commission on

the loan

(53.6) (21.1) –

Total changes from financing cash flows 22.5 (226.0) –

Other changes

Lease additions – 450.0 –

Interest cost 52.4 21.1 –

Other changes 24.6 1.2 (1.3)

Effect of changes in foreign exchange rates 49.4 15.0 –

Total liability-related other changes 126.4 487.3 (1.3)

Amount at the end of the period 767.1 536.6 0.1

For explanation regarding comparative period please refer to note 2.2.

29. Contingent assets and liabilities

Coverage of the net cost of common services provided by the appointed

operator – Poczta Polska (contingent liability)

InPost Sp. z o.o. is registered as a postal operator in the register maintained by the Polish

authority charged with regulating postal operators. The Polish Postal Act provides that

universal postal services, comprising sorting, transport and delivery of letter-post items and

postal parcels of specified dimensions, are provided by the designated operator (currently,

Poczta Polska S.A. (‘Polish Post’)). Based on these regulations, the designated operator may

apply for a certain subsidy in the form ofthe financing of the net cost, due to the fact that

the designated operator is obliged to fulfil a number ofobligations, including providing

services throughout the country and incurs certain costs.

The net cost is the difference between the justified net cost of operations of the designated

operator and the net cost of operations of the same operator providing postal services but

not subject to the universal service obligation, minus the indirect benefits related to the

provision of universal services and the benefits resulting from special or exclusive rights

granted to the designated operator. InPost is subject to claims from the Polish Post for

2013 amounting to PLN 3.2 m and currently, as at the moment of publishing

these consolidated financial statements, the President of UKE (Office of Electronic

Communications)is expected to determine the amount of participation in the surcharge

from InPost Sp. z o.o.

The Group did not recognise the provision for the 2013 claim as the management expects

that the outcome of the proceeding will be favourable for InPost Sp. z o.o.

For the years 2014-2019 no loss had been reported by Poczta Polska S.A.

On 30 July 2021, Poczta Polska S.A. submitted to the President of UKE the calculation of

the net cost and loss on universal services for 2020. On the same day, Poczta Polska S.A.

also applied to the President of UKE for a funding to the net cost of the universal service

obligation for 2020. Until date of issuing these financial statements there is no further

development in above mentioned case. The management is not able to reliably estimate

the amount of potential claim towards InPost Sp. z o.o. raised in relation to the year 2020.

187

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

30. Employee benefits and other provisions

Provision

forexit costs

Employee

benefits and

severances

Performance

Bonuses

Cash Bonus

Plan

Provision for

holidays and

bonuses Other Total

Balance as at 31-12-2020

5.0 6.5 7.1 28.8 7.0 1.8 56.2

Recognition/Creation – 17.9 16.3 24.5 1.8 0.8 61.3

Subsidiary acquisition – 48.3 – – 9.8 18.7 76.8

Reversal – – – – 0.1 (8.3) (8.2)

Utilisation (5.0) – (7.1) (28.8) (7.0) (1.8) (49.7)

Balance as at 31-12-2021 – 72.7 16.3 24.5 11.7 11.2 136.4

The analysis of the impact of creating and releasing provisions and employee benefits on the financial results is presented below:

31-12-2021 31-12-2020

Total impact of net recognition/(release) on profit or loss for the year of which 51.3 38.0

Continued operations 51.3 37.0

Discontinued operations – 1.0

Provision for exit costs

Provisions for exit costs are created for liabilities arising from decisions to discontinue operations and liquidation of a subsidiary. Provisions were created mainly due to court cases with

completed postal activities. Provisions were created in the amount of expected costs to be incurred in cases where the Group is expected to lose.

For explanation regarding comparative period please refer to note 2.2.

188

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

30. Employee benefits and other provisions continued

Employee benefits

The below table presents a summary of employee benefits:

31-12-2021 31-12-2020

Long-term Short-term Long-term Short-term

Post-mortem severance 0.5 – 0.2 –

Retirement benefit 5.1 1.3 0.5 0.1

Unused holiday provision – 43.8 – 5.6

Performance bonuses – 14.5 – 7.0

Cash Bonus Plan 16.8 7.7 13.5 15.4

Total 22.4 67.3 14.2 28.1

The Group is not a party to any wage bargaining agreements or collective employment

agreements. The costs of employee benefits include salaries payable according to the

terms and conditions of employment contracts concluded with individual employees

and the costs of retirement benefits payable to employees pursuant to the Labour

Code provisions at the end of their employment period. Short-term and long-term

employee benefits also include performance bonuses and a Cash Bonus Plan for senior

management.

Short-term employee benefit liabilities are measured according to general principles.

Long-term benefits are estimated using actuarial methods.

Defined benefit obligation

For the purpose of determining employee benefits related to defined benefit obligations

the Group applied the projected unit credit method.

For explanation regarding comparative period please refer to note 2.2.

The following were the principal actuarial assumptions at the reporting date:

31-12-2021 31-12-2020

Discount rate 3.6% 1.4%

Future salary growth 5.8% for 2022

3.6% for 2023

2.5% for 2024

and further

1.5% for 2021

2.1% for 2022

2.5% for 2023

and further

Other long-term employee benefits – Cash Bonus Plan

The Group recognises other long-term employee benefits concerning the Cash Bonus Plan

(“CBP”) for managers. Members were added to the programme in 2018 and 2019. Under

the CBP, members are eligible for a one-off cash payment based on their remuneration

from Integer.pl S.A. for the 12 months prior to Exit (Exit is defined as either the listing of

Integer on the stock exchange or disposal by the parent of the Group) and the multiple

which depends on the exit EBITDA of Poland. Full CBP participation is only possible if

the employee is still employed by Integer S.A. at the Exit date. Appropriate bad leaver

definitions and penalties apply if the person leaves Integer before Exit. In estimating the

provision in 2018 and 2019 the Exit was assumed to occur in Q2 2022 however, in 2020 it

was assumed that the settlement would take place in accordance with the annexes signed

– in 2021, 2022 and 2023 in the relevant part accordingly.

In January 2021 new instance of the programme was announced, under new CBP

members are eligible for cash payments based on their remuneration and multiple which

depends on the EBITDA of InPost Group for the year ended December 2023. Payments will

be divided into three annual payments (2024, 2025 and 2026). Employee will be eligible for

receiving the payment if they are still employed at the time of payment.

For the purpose of determining the provision for employee benefits related to other long

term employee benefits (“CBP”), the Group applied the projected unit creditmethod.

189

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

30. Employee benefits and other provisions continued

The following were the principal actuarial assumptions at the reporting date:

31-12-2021 31-12-2020

Discount rate for CBP programme dated 2018 1.49% 0.19%

Estimated EBITDA

for CBP programme dated 2018 >400.0 >400.0

Discount rate for CBP programme dated 2021 3.40%

Estimated EBITDA

for CBP programme dated 2021 >3,500.0

The table below shows the hypothetical amounts of provisions for exit premiums subject

to changes in key actuarial assumptions:

31-12-2021 31-12-2020

Provision for Exit Fee bonuses 24.4 28.8

Discount rate – 1% 0.2 0.2

Discount rate – 0.5% 0.1 0.1

Discount rate + 0.5% (0.1) (0.1)

Discount rate + 1% (0.2) (0.2)

Forecasted EBITDA PLN -100 million (2.4) (5.8)

Forecasted EBITDA PLN + 100 million – –

Forecasted leavers – 1 person (Good Leaver) (0.8) –

Forecasted leavers + 1 person (Good Leaver) 0.8 –

For explanation regarding comparative period please refer to note 2.2.

Highest possible EBITDA threshold for the bonus.

31. Share-based payment

Management Incentive Plan

Several members of the management personnel of the Group were granted shares in

AI Prime & CY S.C.A. (“MIP shares”) as part of the Management Incentive Plan (“MIP”).

The F-class shares hold a nominal value of 0.07 EUR per share. The number of shares

granted varies depending on the role of the Key Personnel. Members were added to the

programme in 2018, 2019, 2020, and 2021.

The shares granted in 2018 and 2019 were purchased at nominal value, while the shares

granted in November 2020 and January 2021 were purchased at a higher price, i.e. EUR

21 per share and EUR 112 per share. The granted shares were acquired in 10% on the

grant date, then in 10% per annum and finally in 50% on the full or partial exit date (Exit

was defined as the listing of the Company on the stock exchange or sale by the parent

company of the Group). Each of the 10% and 50% of the shares were treated as a separate

parallel tranche (staged vesting). However, at the end of 2020, there was a change in the

provisions of the programme and the entitlement is acquired at the time of a partial exit in

the amount equal to the reduction in the number of shares held by the main shareholder

(2021 40% as result of IPO, future exit dates assumed as 2022 and 2023 both with 30%).

MIP shares are subject to a number of restrictions:

• cannot be sold at the discretion of the holder;

• are subject to a call option, which may be exercised upon departure of a MIP member

from the Company, the relevant definitions of ‘bad leaver’ apply; and

• are not entitled to dividends.

As of 31 December, 2021, the management applied its ’s estimate of the Exit dates

consistently with assumptions applied at 31 December, 2020. As a result, the remaining

cost of granted shares is assumed to be recognised over the period until 31 December,

2023. Please note that due to the share price drop in Q1 the management decided to

reflect on the exit assumptions which is described in the subsequent eventsnote.

190

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

31. Share-based payment continued

The management has determined the fair value of shares granted based on the methods and parameters set out below:

Valuation parameters Jan-18 Feb-18 Jun-18 Sep-18 Jul-19 Oct-19 Nov-19 Nov-20 Jan-21

Fair value of MIP shares (EUR) 0.07 0.07 0.07 0.07 0.56 10.59 10.59 299.70 299.70

Exercise price of MIP shares (EUR) 0.07 0.07 0.07 0.07 0.07 0.07 0.07 21.00 112.00

Number of shares granted 304,011 149,864 71,364 142,728 107,046 142,728 39,963 14,272 111,328

Expiration date (expected exit)

01-02-2021 – 40%

31-12-2022 – 30%

31-12-2023 – 30%

Risk-free interest rate 2.63 2.63 2.55 2.55 1.8 1.8 1.8 (0.01) (0.01)

Annual dividend yield (%) – – – – – – – – –

Volatility (%) 5.7 5.7 5.7 6.3 20 20 20 20 20

Assumed call option execution (%) – – – – – – – – –

Model used Black-Scholes Merton Intrinsic value + Black-Scholes Merton

relating to option time value

Intrinsic value + Black-Scholes Merton

relating to option time value

191

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

31. Share-based payment continued

The following table presents the number and change in MIP shares during the year:

31-12-2021 31-12-2020

MIP shares

granted

MIP shares

granted

Outstanding at 1 January 971,976.0 957,704.0

Granted during the year 111,328.0 14,272.0

Forfeited during the year – –

Exercised during the year 28,545.0 –

Expired during the year – –

Outstanding at the end of the period 1,054,759.0 971,976.0

In October 2021 as per the Supervisory Board decision, the vesting of 28,545 shares granted

in November 2020 and January 2021 was accelerated and the Group recognised their

remaining unvested fair value in the consolidated statement of profit and loss, which led

to the recognition of additional PLN 11.5 m of payroll costs. The weighted average price

of exercised MIP shares amounted to 105.88 EUR. Upon exercise there is no additional

payment made by members.

Accordingly, the Company recognises an expense over the vesting period along with a

corresponding parent contribution recognised in equity (other provisions) for the MIP

shares granted on those dates.

31-12-2021 31-12-2020

Expense arising from MIP 80.0 10.1

Total expense 80.0 10.1

For explanation regarding comparative period please refer to note 2.2.

Total costs recognised in the statement of profit or loss for the year ended 31 December,

2021 amounted to PLN 80.0 m (in comparison to PLN 10.1 m recognised in 2020). The

higher costs as compared to the prior year were mainly caused by the new grant under

this programme, of 7.8% MIP shares, which occurred in January 2021 and vested in 40%

at the time of the IPO. Also, the awards granted before 31 December,2020 vested in 40%

at the IPO date. This charge is presented in the payroll costs. The estimated fair value of the

awards granted in January 2021 amounted to EUR 299.7per share.

In 2021 the Company was listed on the Amsterdam stock exchange which resulted in

the closing of the MIP programme admissions i.e. no further granting can be performed

from this programme. The programme had been replaced by the Long Term Incentive

Programme described below.

Long Term Incentive Programme

In 2021 new share-based Long Term Incentive Programme (further on ‘LTIP’) for Key

Managers was introduced. The LTIP is a discretionary share plan, under which the

Supervisory Board may grant to eligible employees awards of shares (LTIP Awards).

The conditions for the 2021 LTIP realisation are based on a three-year performance period

(2021 to 2023). Depending on the EBITDA target realisation in 2023 vs. the minimum level

of PLN 2.85 bn, the granted shares will either vest in full, vest partially or not vest at all.

The management’s assumption is that the shares will vest in full on the third anniversary

of the grant. As of 31 December, 2021 the assumption is also that no Managers will leave

the Group before the shares vest. The shares that will vest under programme won’t have

exercise price.

In October 2021, an additional grant was announced that will happen in 2022. Due to the

fact that the Managers have been informed about the grant and its total fair value of PLN

6.9 m yet in 2021, although the respective contracts were not signed until 31 December,

2021, the Group commenced to recognize the costs of the programme in 2021.

192

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

31. Share-based payment continued

The management has determined the value of shares granted based on the parameter set

out below:

Valuation parameters Apr–21 Aug-21

Value of LTIP shares (EUR) 15.85 17.08

Number of shares granted 681,975 151,054

Expiration date 30.09.2026

Risk-free interest rate (0.01) (0,01)

Annual dividend yield (%) – –

Volatility (%) 20 20

Assumed call option execution (%) – –

Fair value of shares was

calculated as average price

of InPost S.A. shares on

Euronext stock exchange

over 60 days period prior

granting

The following table presents the number and change in LTIP shares during the year:

31-12-2021

LTIP shares granted

Outstanding at 1 January –

Granted during the year 833,029.0

Forfeited during the year 53,864.0

Exercised during the year –

Expired during the year –

Outstanding at the end of the period 779,165.0

Accordingly, the Company recognises an expense which equally impacts the P&L over the

vesting period along with a corresponding parent contribution recognised in equity (other

provisions) for the LTIP shares granted on those dates.

31-12-2021

Expense arising from LTIP 12.5

Total expense 12.5

32. Other liabilities

Current other liabilities 31-12-2021 31-12-2020

Non-financial liabilities

 

Payroll liabilities 33.0 20.8

Advances received – 0.1

Liabilities to the state 88.2 45.5

Financial liabilities



Other reserves – 0.3

Liabilities due to dividend payment and share

redemption

– 52.9

Current other liabilities total 121.2 119.6

For explanation regarding comparative period please refer to note 2.2.

193

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

33. Trade and other payables

31-12-2021 31-12-2020

Financial liabilities  

Trade payables 665.9 247.7

to related entities – –

to third parties 665.9 247.7

Other payables 119.8 44.6

Liabilities from the settlement of the cash-on-delivery

option

10.0 25.3

Investment liabilities 98.8 17.8

Other 11.0 1.5

Trade and other liabilities total 785.7 292.3

Terms and conditions of the above financial liabilities:

• trade payables are non-interest bearing, unless in default, and are normally settled on

30-day terms;

• cash-on-delivery collected from recipients of parcels is passed on to the sender shortly

after receipt.

For explanations of the Group’s liquidity risk management processes, refer to note 39.

For explanation regarding comparative period please refer to note 2.2.

34. Explanations to the cash flow statement

31-12-2021 31-12-2020

Change in trade and other receivables in the

consolidated statement of financial position

(517.8) (221.7)

Acquisition of company 364.2 –

Trade and other receivables impairment losses (6.4) 3.3

Compensation of VAT returns from CIT (6.5) 1.4

Advances for materials for the production of parcel

machines (included in investment flows)

0.1 (0.3)

Change in receivables from sale in sale and lease-back

transaction

– (4.4)

Exchange differences (0.7) (6.2)

Other 0.9 (0.1)

Change in trade and other receivables (166.2) (228.0)

31-12-2021 31-12-2020

Change in other assets in the consolidated statement of

financial position

(16.8) (42.2)

Acquisition of company 11.5 –

Prepayments for materials used in the manufacture of

automatic parcel machines

(1.2) 39.7

Change in other assets (6.5) (2.5)

194

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

34. Explanations to the cash flow statement continued

31-12-2021 31-12-2020

Change in trade payables and other payables in the

consolidated statement of financial position

493.4 101.0

Acquisition of company (293.9) –

Change in liabilities due to capital expenditures (76.4) 5.7

Exchange differences (0.6) (6.2)

Redemption of shares – (14.7)

Declared dividend payment 40.0 (40.0)

Change in presentation for financial liabilities 1.7 (0.2)

Change in trade payables and other payables 164.2 45.6

31-12-2021 31-12-2020

Change in employee benefits, provisions and

government grants in the consolidated statement

of financial position

68.0 25.9

Acquisition of company (80.7) –

Government grants received/returned 11.6 –

Other (1.0) -

Change in employee benefits, provisions

and government Grants (2.1) 25.9

For explanation regarding comparative period please refer to note 2.2.

31-12-2021 31-12-2020

Total net finance cost 113.6 164.4

Foreign exchange differences realised on working

capital

(32.5) 9.3

Bank fees paid 2.0 2.3

Penalty interest paid – 0.4

Other 1.6 (2.7)

Finance cost/(income) adjustment 84.7 173.7

35. Guarantees and other securities

As at 31 December, 2021 the total amount of granted bank guarantees on behalf of

companies from the Group amounted to PLN 103.9 m (as at 31 December, 2020 amounted

to PLN 52.9 m). Bank guarantees are acollateral for the obligations from contracts signed

by the Group.

195

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

36. Related-party transactions

The services rendered to the Group by related parties (Key management personnel) consist

ofthe following: management, quality control, marketing, distribution, advertising, legal

orconsulting.

Related party transactions

Entity’s name (key management personnel)

Transactions

31-12-2021 31-12-2020

Purchases  

Consulting Services Marcin Pulchny 0.5 0.4

F.H. Fenix Rafał Brzoska 1.7 1.4

Lidar Management Dariusz Lipiński 0.7 0.5

FINSTRAT Adam Aleksandrowicz 1.3 0.8

ZIEVA CONSULTING Marcin Rosati 0.2 1.0

QUANTUM Damian Niewiadomski 0.3 0.7

Total 4.7 4.8

Entity’s name (shareholder)

Transactions

31-12-2021 31-12-2020

Liabilities 

Advent International Corporation 0.8 0.8

Total 0.8 0.8

For explanation regarding comparative period please refer to note 2.2.

Related party transactions and balances

Entity’s name

Transactions Balances

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

As at

31-12-2021

As at

31-12-2020

Associates – revenues and receivables

Associated Entity – AI Prime

Bidco S. à r. l. (the previous

shareholder)

Loan and related interest – – – (690.7)

Other liabilities (dividends

and share redemption)

– – – (52.9)

Finance income – – – –

Finance costs 20.1 – –

In 2021 as a result of reorganisation that was described in note 2.2 all Loan Liabilities

towards AI Prime Bidco S.à r.l. were paid along with liabilities related to share

premium redemption in the amount of PLN 1,238.1 m. In addition, as of the date of the

reorganisation, the liabilities from the dividend payment recognised as of 31 December,

2020 in the amount of PLN 40 m were cancelled and derecognised (see further details in

note 2.2).

196

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

37. Key personnel remuneration

Period of

12 months

ended on

31-12-2021

Period of

12 months

ended on

31-12-2020

Management Board

Cash settled 9.0 6.6

Equity settled

(LTIP programme)

33.5 –

Executive Committee

Cash settled 3.8 –

Equity settled

(LTIP programme)

3.6 –

Supervisory Board

Cash settled 2.5 0.3

Equity settled

(LTIP programme)

– –

Total key personnel remuneration 52.4 6.9

The Company recognises the key personnel to be the Management Board of InPost S.A.

(and Management Board of Integer.pl S.A. for comparative data), the Executive Committee

and the Supervisory Board (and Supervisory Board of Integer.pl S.A. for comparative

data). The Executive Committee was formed in January 2021 as an advisory body for

Management Board of InPost S.A.

For explanation regarding comparative period please refer to note 2.2.

38. Financial instruments

38.1. Financial instruments by category

Category under

IFRS 9

Carrying amount

31-12-2021 31-12-2020

Financial assets measured at fair value through profit or loss

Derivative instruments other than used

forhedging

at FVTPL – –

Trade receivables designated to

be transferred under non-recourse

factoring arrangements

at FVTPL – 83.3

Financial assets not measured at fair value through profit or loss

Trade receivables not transferred to non-

recourse factoring and other receivables

at amortised cost 799.3 324.3

Other receivables – current at amortised cost 104.1 4.7

Other receivables – non-current at amortised cost 31.4 6.0

Loans granted at amortised cost – –

Cash and cash equivalents at amortised cost 493.2 144.2

Total financial assets 1,428.0 562.5

197

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

38. Financial instruments continued

Category under

IFRS 9

Carrying amount

31-12-2021 31-12-2020

Financial liabilities measured at fair value

Derivative instruments other than used

forhedging

FVTPL – –

Financial liabilities not measured at fair value

Current loans and borrowings At amortised cost 194.4 23.7

Non-current loans and borrowings At amortised cost 1,808.9 743.4

Bonds At amortised cost 2,736.9 –

Trade and other payables At amortised cost 785.7 310.2

Non-current lease liabilities

Other

financial liabilities

835.1 304.0

Current lease liabilities

Other

financial liabilities

357.7 232.6

Other financial liabilities At amortised cost – 0.3

Current factoring liabilities At amortised cost – 0.1

Total financial liabilities 6,718.7 1,614.0

In the case of financial assets and financial liabilities not measured at fair value, their

carrying amounts are a reasonable approximation of their fair values as at 31 December,

2021 and 31 December, 2020.

Trade receivables under the factoring arrangements are measured at fair value based on

the factoring arrangements provisions regarding the transfer of receivables, which are

assessed by the management as reflecting the market prices at the reporting date. These

financial instruments are considered level 2 of the fair value hierarchy.

For explanation regarding comparative period please refer to note 2.2.

38.2. The fair value hierarchy of financial instruments

The management assessed that the fair values of cash and short-term deposits, trade and

other short-term financial receivables, trade payables, bank overdrafts and other current

liabilities approximate their carrying amounts largely due to the short-term maturities of

these instruments.

The fair values of the Group’s interest-bearing loans and borrowings are determined by

using the DCF method using a discount rate that reflects the issuer’s borrowing rate as

at the end of the reporting period. The own non-performance risk as of the reporting

date was assessed to be insignificant. Based on the analysis performed, the Management

assessed that the carrying amount of the long-term loans and borrowings are reasonable

approximations of fair values.

Measurement of derivative instruments not designated for hedge accounting is classified

as level 2 in the fair value hierarchy, which is based on various valuation methods using

market observable data. The fair value of derivative contracts is determined by the Group

based on the valuation provided by banks.

Trade receivables designated as to be transferred under non-recourse factoring

arrangements are measured at fair value classified to level 2 in the fair value hierarchy.

The fair value of these receivables is determined by the adjustment of nominal amounts

transferred to the factor by the factor’s commissions/fees, which was assessed by the

management to reflect the market prices of these receivables.

39. Financial risk management objectives

The Group’s operations are exposed to many different types of financial risk: market risk

(including the risk of changes in foreign exchange rates and the risk of changes in fair value

or cash flows due to changes in interest rates), credit risk and liquidity risk.

The Group’s risk management policy aims to minimize the potential unfavourable financial

risks impact on the financial results. The Management Board of the Parent is responsible

for risk management through conducting ongoing analysis of financial risks and taking

appropriate decisions in this regard.

198

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

39. Financial risk management objectives continued

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in market prices.

Currency risk

The Group is exposed to currency risks resulting from transactions in various foreign

currencies, predominantly EUR and GBP.

Following exchange rates were used at the reporting dates:

The exchange rate at the reporting date 31-12-2021 31-12-2020

EUR 4.5994 4.6148

GBP 5.4846 5.1327

Average exchange rate for the period 31-12-2021 31-12-2020

EUR 4.5775 4.4742

GBP 5.3308 5.0240

The tables below present the exposure to currency risk and sensitivity analysis of a

reasonable possible strengthening (weakening) of foreign currencies which would have

affected the measurement of financial instruments denominated in a foreign currency

and affected profit or loss by the amounts shown below. This analysis assumes that all

other variables, in particular interest rates, remain constant and ignores any impact of

changes on forecasts sales and purchases.

Exposure and sensitivity analysis to currency risk in 2021:

2021

Carrying

amount

Amount

exposed

to risk

GBP/PLN EUR/PLN

The financial result

after tax

The financial result

after tax

GBP/PLN

exchange

rate “+10%”

GBP/PLN

exchange

rate “-10%”

EUR/PLN

exchange

rate “+10%”

EUR/PLN

exchange

rate “-10%”

Cash and cash

equivalents

493.2 336.4 1.9 (1.9) 25.3 (25.3)

Trade receivables

and other

927.1 396.0 2.3 (2.3) 29.6 (29.6)

Trade liabilities

and other

payables

785.7 456.0 (4.4) 4.4 (32.5) 32.5

Loans and

borrowings

4,740.2 4,184.2 – – (338.9) 338.9

Other financial

liabilities

1,192.8 332.4 (2.6) 2.6 (24.3) 24.3

Total 8,139.0 5,705.0 (2.8) 2.8 (340.8) 340.8

199

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

39. Financial risk management objectives continued

Exposure and sensitivity analysis to currency risk in 2020:

2020

Carrying

amount

Amount

exposed

to risk

GBP/PLN EUR/PLN

The financial result

after tax

The financial result

after tax

GBP/PLN

exchange

rate

“+10%”

GBP/PLN

exchange

rate

“-10%”

EUR/PLN

exchange

rate

“+10%”

EUR/PLN

exchange

rate

“-10%”

Cash and cash

equivalents

144.2 25.8 0.3 (0.3) 1.7 (1.7)

Trade receivables

and other

434.7 24.3 0.5 (0.5) 0.3 (0.3)

Trade liabilities and

other payables

292.3 20.9 (1.1) 1.1 (0.5) 0.5

Loans and

borrowings

767.1 690.9 – – (55.9) 55.9

Other financial

liabilities

536.7 12.3 (0.5) 0.5 (0.5) 0.5

Total 2,175.0 774.2 (0.8) 0.8 (54.9) 54.9

Interest rate risk

The interest rate risk arises on bank loans, leases and loans granted by changing their future cash

flows. The Group analyses the level of interest rate risk on an ongoing basis aiming to minimize

it. The Group assesses the impact of interest rate fluctuations on profit and loss and adjusts the

debt instruments structure when necessary.

The tables below present the profile of the Group’s interest-bearing financial instruments

and sensitivity analysis as follow.

A reasonably possible change of 10 basis points in interest rates at the reporting date

would have increased (decreased) the financial result by the amounts shown below. This

analysis assumes that all other variables, in particular foreign currency exchange rates,

remain constant.

For explanation regarding comparative period please refer to note 2.2.

Exposure and sensitivity analysis to interest rate risk in 2021:

2021

Carrying

amount

Amount

exposed to

risk

Change in the financial

result after tax

Rate

+ 0.1 pp

Rate

- 0.1 pp

Loans and borrowings 4,740.2 2,501.9 (2.0) 2.0

Leases 1,192.8 – – –

Total 5,933.0 2,501.9 (2.0) 2.0

Exposure and sensitivity analysis to interest rate risk in 2020:

2020

Carrying

amount

Amount

exposed to

risk

Change in the financial

result after tax

Rate

+ 0.1 pp

Rate

- 0.1 pp

Loans and borrowings 767.1 767.1 (0.6) 0.6

Leases 536.7 – – –

Total 1,303.8 767.1 (0.6) 0.6

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial

instrument or customer contract, leading to a financial loss. The Group is exposed to

credit risk from its operating activities (primarily trade receivables) and from its financing

activities, including deposits with banks and financial institutions, foreign exchange

transactions and other financial instruments.

Trade receivables

Due to the nature of its operations, the Group can be exposed to a significant risk to sales

with deferred payment. Sales are made to companies, with deferred payment from 14 to

90 days.

200

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

39. Financial risk management objectives continued

Customer credit risk is managed by each business unit subject to the Group’s established

policy, procedures and control relating to customer credit risk management. The credit quality

of a customer is assessed and individual credit limits are defined in accordance with this

assessment. Outstanding customer receivables and contract assets are regularly monitored

and trade receivables are generally covered by letters of credit or other forms of credit insurance

obtained from reputable banks and other financial institutions.

Additionally, the Group is a party to non-recourse factoring arrangements for a significant

portfolio of trade receivables, resulting in the original receivable being derecognised from

the statement of financial position upon its transfer. The provisions of the non-recourse

factoring arrangements meet the derecognition criteria for the trade receivables.

The Group evaluates the concentration of risk with respect to trade receivables as low,

as its customers are located in several jurisdictions and industries and operate in largely

independent markets.

An impairment analysis is performed for trade receivables measured at amortised cost

(excluding receivables designates as to be transferred under non-recourse factoring

arrangements) at each reporting date.

Set out below is the information about trade receivables past due for more than one year

as well as those that have been written-off base on an individual assessment (e.g. subject to

legal proceedings, bankruptcy, etc.).

31-12-2021 31-12-2020

Trade receivables written-off based on individual

assessment

90.2 74.0

Allowance for expected credit losses (90.2) (74.0)

Total carrying amount of trade receivables under

individual impairment assessment – –

For detailed information about the credit risk exposure on the Group’s trade receivables,

please refer to note 24.

For explanation regarding comparative period please refer to note 2.2.

Cash and cash equivalents

Credit risk from balances with banks and financial institutions is limited because the

Group’s business partners are banks with a high credit rating granted by international

rating agencies.

The Group’s maximum exposure to credit risk for the components of the statement of

financial position at 31 December, 2021, and 31 December, 2020, is their carrying amount.

The expected credit loss relating to cash and short-term deposits of the Group is

insignificant – for details please refer to note 25.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations

associated with its financial liabilities that are settled by delivering cash or another

financial asset.

Liquidity risk management of the Group assumes maintaining an adequate level of liquid

assets or available overdrafts to meet its liabilities when they are due, under both normal

and stressed conditions, without incurring unacceptable losses or risking damage to the

Group’s reputations. Additionally to the above, the Group intends to maintain flexibility of

financing under the available funds.

The liquidity risk is mitigated by ongoing planning of liquidity requirements and by

monitoring liquidity. The Group controls its liquidity by maintaining sufficient cash and

cash equivalents and constant monitoring of its cash flow as well as by ensuring that the

lines of credit at banks and similar overdraft instruments are available in addition to cash

inflows from operating activities. On top of that, as part of liquidity risk management, the

Group is taking advantage of factoring agreements as well as ensuring that in certain cases

a significant part of the price for services is prepaid by the customers before the service is

provided (subscriptions, pre-paid services).

The current cash flow enables the Group to settle its obligations as they arise in a timely

manner. The Group also has access to a revolving borrowing facility of PLN 800 m although

it has not been utilized, as at 31 December, 2021 the use of revolving loans amounted to

PLN 0.0 m (0.2 m in 2020).

201

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

39. Financial risk management objectives continued

Taking into account the positive cash flow and cash balance, actual and planned results,

the long-term nature of loans and liabilities (mainly related to leasing or purchase of fixed

assets), available overdraft facilities, the Management Board believes that the liquidity risk

has been limited.

The table below presents an analysis of the Group’s financial liabilities based on the period

remaining until the contractual maturity date as at the balance sheet date. The amounts

presented in the table are contractual undiscounted cash flows.

2021 < 1 year 1-3 years 3-5 years > 5 years

Contractual

cash flows

total

Carrying

amount

Variable interest

Leases 370.5 375.6 294.5 212.4 1,253.0 1,192.8

Loans and borrowings 137.8 270.5 2,116.5 514.0 3,038.8 2,501.9

Fixed interest

Loans and borrowings 58.1 116.2 116.2 2,285.2 2,575.7 2,238.3

Non-interest-bearing

Trade and other payables 785.7 – – – 785.7 785.7

Total 1,352.1 762.3 2,527.2 3,011.6 7,653.2 6,718.7

2020

< 1 year 1-3 years 3-5 years > 5 years

Contractual

cash flows

total

Carrying

amount

Variable interest

Leases 244.8 145.3 129.1 61.2 580.4 536.6

Loans and borrowings 714.5 63.4 – – 777.9 767.1

Non-interest-bearing

Trade and other payables 310.2 – – – 310.2 310.2

Factoring liabilities 0.1 – – – 0.1 0.1

Total 1,269.6 208.7 129.1 61.2 1,668.6 1,614.0

40. Employment structure

The employment structure of the Group is as follows (total number of employees at the

period end):

Period of

12 months ended

on 31-12-2021

Period of

12 months ended

on 31-12-2020

Management Board 3 5

Management 919 195

White-collar employees 2,629 2,030

Blue-collar employees 1,723 760

Total employment 5,274 2,990

For explanation regarding comparative period please refer to note 2.2.

202

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Notes and explanations continued

Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2021 (in millions PLN)

41. Auditors remuneration

Period of

12 months ended

on 31-12-2021

Period of

12 months ended

on 31-12-2020

Remuneration for the audit of financial

statements

1.9 0.8

Other services 3.5 2.1

Total auditor’s remuneration 5.4 2.9

42. Events after the balance sheet date

Russian invasion on Ukraine

On 24 February, 2022 Russia launched a large-scale invasion of Ukraine, Poland’s neighbour

to the east. The Group is taking a number of activities aimed at providing support to its

employees of Ukrainian nationality, their families and relatives and all other people in

need of help. The Group is actively engaged in helping Ukrainians by using Group’s huge

transport fleet to help deliver large amounts of products collected as part of campaigns

and collections organised throughout Poland to the Ukrainians.

Up until the date of authorisation of these consolidated financial statements for issue, the

InPost Group has not been directly affected by the military conflict, as the Group does not

conduct any operations and does not have any assets located in either Russia, Belarus or

Ukraine. At the date of authorisation of these consolidated financial statements for issue,

the Group does not identify the risk of interrupting continuity of deliveries due to the lack

of employees or due to any other reason.

On 28 February, 2022 the Group communicated that it will not acquire any goods or

services from those companies whose shareholding is above 5% Russian or Belarusian.

This decision in itself is not expected to have significant negative impact on the Group’s

business as the sourcing was focused on mainly local markets and some on China.

It cannot be excluded that situation in Ukraine will have negative effects for the Polish

national economy, as well as regional and world economy both in the short and long term,

such as: increase in petroleum prices, change in exchange rates and increase in inflation

rate, which may negatively affect Group’s financial results in subsequent periods. It cannot

be excluded that the situation may cause changes to customers’ behaviours resulting in

decreased demand for logistics services.

For explanation regarding comparative period please refer to note 2.2.

Management Board of the Parent Company constantly monitors the impact of the

political and economic situation in Ukraine on the activities of the Group and on the

financial results in the perspective of subsequent periods and adjusts the Group’s budgets

accordingly.

Changed expectation of exit dates for the purpose of SBP valuation

The market price of Company shares, which moved in line with the general market

trends up till the end of the year 2021, plummeted in February 2022 decreasing the

market valuation of the Company by 48% as at 28 February. Based on this and also due

to the unstable situation related to the Russian invasion into Ukraine, the management

decided to revise the estimated exit dates. As at the date of authorisation of these financial

statements for issue it is the management’s assessment that a probable exit will occur in

2024 or 2025 (is effectively extended by one or two years in comparison to assessment as

of the balance sheet date). This change in estimated vesting period will be accounted for

prospectively and will result in decrease of an annual cost of share-based payments plan in

range of PLN 9.3-12.9m (depending on extension period).

Luxembourg, 30 March, 2022

…………………………………..……………….. …………………………………..………………..

Rafał Brzoska Adam Aleksandrowicz

President of the Management Board Vice President of the Management Board

…………………………………..………………..

Michael Rouse

Vice President of the Management Board

203

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Independent Limited Assurance Report on a selection of Key Performance Indicators disclosed in the

InPost S.A. Annual Report 2021

To the Board of Directors of

InPost S.A.

We have performed a limited assurance engagement with respect to a selection of Key

Performance Indicators disclosed in the “Sustainability report” and in the “About the

report” sections included in the Annual Report 2021 (the “2021 Sustainability report”) of

InPost S.A (the “Company” or “InPost”) as set out in the “Scope” section below.

Scope

The scope of our work was limited to provide limited assurance over the selected Key

Performance Indicators as set out in the table below (the “Selected Information”).

Topics GRI Key Performance Indicators

Corporate

governance

and economic

performance

201-1 Direct economic value generated and distributed

205-3 Confirmed incidents of corruption and actions taken

207-1 Approach to tax

207-2 Tax governance, control, and risk management

Workplace and

society

102-8 Information on employee and other workers

401-1 New employee hires and employee turnover

403-2 Hazard identification, risk assessment, and incident

investigation

403-9 Work-related injuries

405-1 Diversity of governance bodies and employees

418-1 Substantiated complaints concerning breaches of

customer privacy and losses of customer data

419-1 Non-compliance with laws and regulations in the social

and economic area

Environment 301-1 Materials used by weight or volume

302-1 Energy consumption within the organisation

305-1 Direct GHG emissions

305-2 Energy indirect (Scope 2) GHG emissions

Our assurance was with respect to the year ended 31 December 2021 information only

and we have not performed any procedures with respect to earlier periods or any other

elements included in the InPost Annual Report 2021 and, therefore, do not express any

conclusion thereon.

The Assessment Criteria

The Selected Information was prepared in accordance with certain sections of the Global

Reporting Initiative (“GRI”) framework and additional methodologies defined by Company

policies (together the “Assessment Criteria”) for the year ending 31 December 2021, which

are accompanying the KPI disclosures in the 2021 Sustainability report.

Management considers the Assessment Criteria relevant for the purpose of the Company’s

business and for the ultimate users of the 2021 Sustainability report.

Responsibilities of the Board of Directors

The Board of Directors of the Company is responsible for:

• developing appropriate Assessment Criteria against which to assess the Selected

Information and applying these consistently;

• ensuring that those Assessment Criteria are relevant and appropriate to the Company

and its shareholders;

• designing, implementing and maintaining internal control procedures that provide

adequate control over the preparation and presentation of the Selected Information

that is free from material misstatement, whether due to fraud or error;

• selecting and applying appropriate policies, and making estimates that are reasonable

in the circumstances;

• the preparation of the Selected Information in accordance with the Assessment Criteria;

and

• the retention of sufficient, appropriate records to support the reported data and

assertions included in the Selected Information.

204

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Independent Limited Assurance Report continued

Inherent limitations

The Selected Information needs to be read and understood together with the Assessment

Criteria which the Company is solely responsible for selecting and applying. The absence

of a significant body of established practice on which to draw to evaluate and measure

non-financial information allows for different, but acceptable, measurement techniques

and can affect comparability between entities and over time. In addition, greenhouse gas

emissions ('GHG') quantification is subject to inherent uncertainty because of such things

as emissions factors that are used in mathematical models to calculate emissions and

the inability of those models, due to incomplete scientific knowledge and other factors,

to precisely characterize under all circumstances the relationship between various inputs

and the resultant emissions. Environmental and energy use data used in GHG emissions

calculations are subject to inherent limitations, given the nature and the methods used for

determining such data. The selection of different but acceptable measurement techniques

may result in materially different measurements.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the

International Code of Ethics for Professional Accountants (including International

Independence Standards) issued by the International Ethics Standards Board for

Accountants as adopted for Luxembourg by the “Commission de Surveillance du Secteur

Financier” (“CSSF”), which is founded on fundamental principles of integrity, objectivity,

professional competence and due care, confidentiality and professional behavior.

Our firm applies International Standard on Quality Control 1 as adopted for Luxembourg by

the CSSF and accordingly maintains a comprehensive system of quality control including

documented policies and procedures regarding compliance with ethical requirements,

professional standards and applicable legal and regulatory requirements.

Responsibility of the “Réviseur d’entreprises agréé”

Our responsibility is to express a limited assurance conclusion on the Selected Information

as set out in the Table above or in the Appendix 1 based on the procedures we have

performed and the evidence we have obtained. We conducted our assurance engagement

in accordance with the International Standard on Assurance Engagements (ISAE) 3000

(Revised): Assurance Engagements other than Audits or Reviews of Historical Financial

Information, issued by the “International Auditing and Assurance Standards Board” (IAASB)

as adopted for Luxembourg by the “Institut des Réviseurs d’Entreprises”. This Standard

requires that we plan and perform the assurance engagement to allow us to conclude

with limited assurance that nothing has come to our attention that causes us to believe

that the Selected Information has not been prepared, in all material aspects, in accordance

with the Assessment Criteria.

A limited assurance engagement involves assessing the suitability in the circumstances

of the Company’s use of the Assessment Criteria as the basis for the preparation of

the Selected Information, assessing the risks of material misstatement of the Selected

Information whether due to fraud or error, responding to the assessed risks as necessary in

the circumstances, and evaluating the overall presentation of the Selected Information.

In a limited assurance engagement, the procedures vary in nature and timing and are less

in extent than for a reasonable assurance engagement. As a result, the level of assurance

obtained in a limited assurance engagement is substantially lower than the assurance that

would have been obtained had we performed a reasonable assurance engagement.

Within the scope of our engagement we did not perform an audit or a review on external

sources of information or expert opinions, referred to in the 2021 Sustainability report.

Within the scope of our limited assurance engagement, we performed, amongst others,

the following procedures:

• We gained an understanding of the Selected Information and related disclosures;

• We gained an understanding of the Assessment Criteria and their suitability for the

evaluation and/or measurements of the Selected Information;

• We gained an understanding of the internal control procedures in place supporting the

gathering, aggregation, processing, transmittal of data and information and reporting of

the Selected Information, including controls over third party information (if applicable)

and performing walkthroughs to confirm our understanding;

• Based on that understanding, we assessed the risks that the Selected Information may

be materially misstated and determination of the nature, timing and extent of further

procedures;

• We inquired relevant Company management, personnel and third parties;

• We performed analytical procedures related to the Selected Information;

• We considered the significant estimates and judgements made by management in the

preparation of the Selected Information;

• We performed limited testing, on a selective basis of evidence supporting the reported

Selected Information and assessed the related disclosures; and

• We obtained representations from management and the Company’s Sustainability

responsible officer over the completeness and accuracy of the information presented.

205

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Limited Assurance conclusion

Based on the procedures we have performed and evidence we have obtained, nothing has

come to our attention that causes us to believe that the Company’s Selected Information

as set out in the table above for the year ended 31 December 2021 has not been prepared,

in all material aspects, in accordance with the Assessment Criteria.

Restriction on Use and Distribution of our Report

Our report has been prepared for, and only for, the Board of Directors of InPost, and solely

for the purpose of reporting to them the “Selected Information” disclosed in the 2021

Sustainability report and no other purpose. We will not, in giving our conclusion, accept or

assume responsibility (legal or otherwise) or accept liability for, or in connection with, any

other purpose for which our report including the conclusion might be used, or to any other

person to whom our report will be shown or into whose hands it might come, and no

other persons shall be entitled to rely on our conclusion.

PricewaterhouseCoopers,

Société coopérative

Luxembourg, 30 March, 2022

Represented by

Brieuc Malherbe

Réviseur d’entreprises agréé

Independent Limited Assurance Report continued

206

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

SDG TARGET

INPOST GROUP CONTRIBUTING

ACTIONS – EXAMPLES

Encourage companies, especially large

and transnational companies, to adopt

sustainable practices and to integrate

sustainability information into their

reporting cycle (12.6)

2nd ESG reporting, 1st with external

assurance

GRI [102-51]: This sustainability report is

InPost Group’s second such report (the

previous one for 2020 was published

in H1 2021). GRI [102-50, 102-52]: The

company reports in a yearly cycle and

the document encompasses the year

2021 (1 January 2021 – 31 December

2021), unless a different reporting

period for data and information has

been indicated within the text. The

report fulfills the requirements of the

EU directive on disclosure of non-

financial information (InPost falls under

NFRD as a Group–- consolidated way

of presenting data), complies with the

GRI [102-54]: Global Report Initiative

(GRI) standard on the level CORE,

and addresses guidelines of the Task

Force on Climate-Related Financial

Disclosures (TFCD) within the section

concerning the identification of

climaterisk.

GRI [102-45]: The scope of non-financial

data contained in the report includes

InPost S. A., and Polish subsidiaries:

Integer.pl S.A., InPost Technology,

InPost Sp. z o. o., Inpost Paczkomaty

Sp. z o. o., Integer Group Services

Sp. o. o., along with British company

InPost UK Limited and French

company Mondial Relay. The remaining

companies of InPost Group were not

included in the report mainly since

the process of their liquidation has

been already intitiated or due to other

technical nature.

GRI [102-49]: Significant changes

occurred in InPost Group during the

reporting period. InPost S. A. stocks

appeared for the first time as public

offering, and they made their debut

on the EuroNext Amsterdam stock

exchange. The Group also financed the

purchase of Mondial Relay, a leading

French firm specialising in delivering

packages in the “collection point”

format. With this purchase, InPost

Group became the largest e-commerce

delivery platform in Europe. GRI [102-

48]: No data for 2020 were changed.

About the

Report

GRI [102-46]: In line with the principles

of materiality assessment according

to GRI the process followed three

steps: Identification, Prioritisation, and

Validation of the senior management,

Board of Directors and Management

Board. InPost has conducted an

anonymous survey among more than

1000 stakeholders: investors & analysts,

consumers and employees.

GRI [102-44]: During the dialogue,

aspects of low, medium, and high

relevance were identified. The aspects of

low relevance, providing no measurable

added value for the organisation

and recipients of this report, were

disregarded.

The axis of the sustainability report

of InPost Group centers on ESG

strategies grouped around three pillars:

CUSTOMER, PEOPLE, PLANET.

GRI [102-47]: The topics covered include:

• decarbonisation

• closed-loop packaging

• innovation and sustainable services

• social engagement

• increase of life quality in cities

• development of employees and

business partners

• diversity

The report also describes the structure

and management approach towards

ESG topics and the entire Group

along with the relevant policies and

procedures indicated according to

NFRD requirements.

Identified material topics

The report has been externally assured

by PwC.

We extend our sincere gratitude

to all individuals whose knowledge

and efforts have contributed to the

creation of this report (more than

70 people across the InPost Group

worldwide), and we await further

suggestions and questions from

our readers - e-mail: ir@inpost.eu

GRI [102-53]: In case of any questions

and remark regarding the report, please

contact Investor Relations,

email: ir@inpost.eu,

207

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

About the Report

continued

GRI 102-44 Identified material topics

[GRI 103-1]

ENVIRONMENTAL TOPICS SOCIAL TOPICS GOVERNANCE TOPICS

FOR EMPLOYEES AND CUSTOMERS

Actions taken on waste management, recycling

(including returnable packaging)

Ensuring equal opportunities, counteracting

discrimination in the workplace (due to e.g. age,

nationality,gender)

Ensuring the highest quality and safety of delivered

shipments

Sustainable and safe courier transport Caring for the psychological well-being of employees Supporting the development of local businesses

Effective management of energy consumption

(including use of renewable energy sources)

Taking care of health and safety at work

Removing barriers to Parcel Post access (e.g., geographic

or physical)

FOR INVESTORS

Size of climate footprint and ways to neutralize it –

76% of all groups

Anti-discrimination and anti-corruption initiatives Plans and business strategy for the future

Planned investments in decarbonization Diversity and equal opportunity initiatives Financial performance and ensuring financial stability

of the Group

Note: % of aggregated "rather important" and "very important" responses by consumer/employee/investor. Order determined by averaging the results of InPost management and stakeholder groups.

208

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

ORGANISATIONAL PROFILE

GENERAL DISCLOSURES

GRI 101 101-1

Name of the organisation 1

GRI 102 102-1

Name of the organisation Cover

102-2

Activities, brands, products and services 12, 27

102-3

Location of headquarters 17

102-4

Location of operations 12

102-5

Ownership and legal form 17, 18

102-6

Markets served 13, 27

102-7

Scale of the organisation 2, 12

102-8

Information on employees and other workers

✔

SDG 8, 10 18, 69, 217

102-9

Supply chain 24

102-10

Significant changes to the organisation and its supply chain ii

102-11

Precautionary Principle or approach Principle 1,

Principle 2,

Principle 3,

Principle 4,

Principle 5,

Principle 6,

Principle 10

100

102-12

External initiatives 43, 86

102-13

Membership of associations 35

GRI Index

GRI [102-55]

209

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

STRATEGY

102-14

Statement from senior decision-maker iii

102-15

Key impacts, risk, and opportunities Principle 1,

Principle 2,

Principle 5,

Principle 6,

Principle 10

23, 25, 27, 77, 100

ETHICS AND INTEGRITY

102-16

Values, principles, standards, and norms of behaviour SDG 16 Principle 1,

Principle 2,

Principle 3,

Principle 4,

Principle 5,

Principle 6,

Principle 10

1, 21, 88

102-17

Mechanisms for advice and concerns about ethics SDG 16 Principle 1,

Principle 2,

Principle 3,

Principle 4,

Principle 5,

Principle 6,

Principle 10

GOVERNANCE

102-18

Governance structure 78

102-19

Delegating authority 79

102-20

Executive-level responsibility for economic, environmental,

and social topics

GRI Index

GRI [102-55] continued

210

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

STAKEHOLDER ENGAGEMENT

102-40

List of stakeholder groups 34

102-41

Collective bargaining agreements Principle 3 71

102-42

Identifying and selecting stakeholders 33

102-43

Approach to stakeholder engagement 33

102-44

Key topics and concerns raised 34, 206, 207

REPORTING PRACTICE

102-45

Entities included in the consolidated financial statements 206

102-46

Defining report content and topic Boundaries in the

consolidated statements

206

102-47

List of material topics 206

102-48

Restatements of information 206

102-49

Changes in reporting 206

102-50

Reporting period 206

102-51

Date of most recent report 206

102-52

Reporting cycle 206

102-53

Contact point for questions regarding the report 206

102-54

Claims of reporting in accordance with the GRI Standards 206

102-55

GRI content index 208-215

102-56

External assurance 203-205

GRI Index

GRI [102-55] continued

211

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

MANAGEMENT APPROACH

GRI 103 103-1

Explanation of the material topic and its Boundary 47, 207

103-2

The management approach and its components 53, 59, 68, 72, 74, 77, 79,

85, 89, 91, 92, 95, 100, 105

103-3

Evaluation of the management approach 47, 79, 89, 93

ECONOMIC

ECONOMIC PERFORMANCE

GRI 201 201-1

Direct economic value generated and distributed SDG 8, 9 45, 218

201-2

Financial implications and other risks and opportunities

due to climate change

SDG 13 Principle 7 103

MARKET PRESENCE

GRI 202 202-1

Ratios of standard entry level wage by gender compared

to local minimum wage

✔

71, 219

INDIRECT ECONOMIC IMPACTS

GRI 203 203-1

Infrastructure investments and services supported SDG 9 63, 64

ANTI-CORRUPTION

GRI 205 205-1

Operations assessed for risks related to corruption SDG 16 Principle 10 The company has not

separated corruption as

a risk factor in its overall

risk assessment

205-2

Communication and training about anti-corruption

policies and procedures

✔

SDG 16 Indicator partially

reported 93

205-3

Confirmed incidents of corruption and actions taken SDG 16 91, 92

GRI Index

GRI [102-55] continued

212

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

TAX

GRI 207 207-1

Approach to tax

✔

SDG 1, 10,

Principle 10 96, 97

207-2

Tax governance, control, and risk management

✔

SDG 1, 10,

97, 98

207-3

Stakeholder engagement and management of concerns

related to tax

SDG 1, 10,

207-4

Country-by-country reporting 99

ENVIRONMENTAL

MATERIALS

GRI 301 301-1

Materials used by weight or volume

✔

SDG 8,

SDG 12

Principle 8,

Principle 9

Indicator partially

reported 55, 219

Not applicable to UK

as InPost UK does not

collect the data

301-2

Recycled input materials used SDG 8,

SDG 12

Data not applicable for

InPost UK and Mondial

Relay as there are no

such materials or data

are not collected 55, 219

ENERGY

GRI 302 302-1

Energy consumption within the organisation

✔

SDG 7, 8,

12, 13

Principle 8,

Principle 9

Indicator partially

reported 46, 53, 220, 221

Not applicable to UK

as InPost UK does not

collect the data

GRI Index

GRI [102-55] continued

213

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

EMISSIONS

GRI 305 305-1

Direct (scope 1) GHG emissions

✔

SDG 3, 12,

13, 14, 15

Principle 8,

Principle 9

Data not collected by

InPost UK in 2021 52, 222

305-2

Energy indirect (scope 2) GHG emissions

✔

SDG 3, 12,

13, 14, 15

Data not collected by

InPost UK in 2021 52, 222

305-3

Other indirect (scope 3) GHG emissions SDG 3, 12,

13, 14, 15

Data not collected by

InPost UK in 2021 52, 222

305-4

GHG emissions intensity SDG 3, 13,

14, 15

52, 223

305-5

Reduction of GHG emissions SDG 13,

14, 15

Data collected only for

Poland 54, 223

WASTE

GRI 306 306-1

Waste generation and significant waste-related impacts 6, 11, 12, 3 Principle 8,

Principle 9

55, 223

306-2

Management of significant waste-related impacts SDG 3, 6,

11, 12

55, 56

306-3

Waste generated SDG 3, 6,

11, 12

55, 224

ENVIRONMENTAL COMPLIANCE

GRI 307 307-1

Non-compliance with environmental laws and regulations SDG 16 92

SOCIAL

EMPLOYMENT

GRI 401 401-1

New employee hires and employee turnover

✔

SDG 5, 8,

70, 225, 226

401-2

Benefits provided to full-time employee that are not

provided to temporary or part-time employees

SDG 3,

5, 8

72, 227

GRI Index

GRI [102-55] continued

214

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

OCCUPATIONAL HEALTH AND SAFETY

GRI 403 403-1

Occupational health and safety management system SDG 3,

8, 16

Principle 1 72

403-2

Hazard identification, risk assessment, and incident

investigation

✔

SDG 8 72, 73

403-3

Occupational health services SDG 8 72

403-4

Worker participation, consultation, and communication on

occupational health and safety

SDG 8, 16 Principle 1 73

403-5

Worker training on occupational health and safety SDG 8 73

403-6

Promotion of worker health SDG 8 73

403-7

Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships

SDG 8 73

403-8

Workers covered by an occupational health and safety

management system

SDG 8 72

403-9

Work-related injuries

✔

SDG 3,

8, 16

73, 228

403-10

Work-related ill health SDG 3,

8, 16

TRAINING AND EDUCATION

GRI 404 404-1

Average hours of training per year per employee SDG 4, 5,

8, 10

Indicator partially

reported 72, 228

404-2

Programmes for upgrading employee skills and transition

assistance programmes

SDG 8 72

404-3

Percentage of employees receiving regular performance and

career development reviews

SDG 8 Principle 6 72, 229, 230

GRI Index

GRI [102-55] continued

215

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Standard

number

Disclosure

number

GRI Standards

2018/2016

Non-financial

assurance

SDGs UN Global

Compact

Page/Comments

DIVERSITY AND EQUAL OPPORTUNITY

GRI 405 405-1

Diversity of governance bodies and employees

✔

SDG 8, 5 Principle 6 18, 71, 231, 232

405-2

Ratio of basic salary and remuneration of women to men SDG 8, 5 Principle 6 Data for InPost UK and

Mondial Realy could not

be reported 71, 113, 233

NON-DISCRIMINATION

GRI 406 406-1

Incidents of discriminations and corrective actions taken SDG 8, 5,

SDG 16

Principle 6 92

CHILD LABOUR

GRI 408 408-1

Operations and suppliers at significant risk for incidents of

child labour

SDG 8, 16 Principle 5 Indicator partially

reported 105

FORCED OR COMPULSORY LABOR

GRI 409 409-1

Operations and suppliers at significant risk for incidents of

forced or compulsory labour

SDG 8, 16 Principle 5 Indicator partially

reported 105

PUBLIC POLICY

GRI 415 415-1

Political contributions SDG 16 Principle 10 89

CUSTOMER PRIVACY

GRI 418 418-1

Substantiated complaints concerning breaches of customer

privacy and losses of customer data

✔

SDG 16 Principle 1 95, 234

SOCIOECONOMIC COMPLIANCE

GRI 419 419-1

Non-compliance with laws and regulations in the social and

economic area

✔

SDG 16 92

GRI Index

GRI [102-55] continued

216

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI Index

GRI [102-55] continued

SASB index

Metric code Metric Page

TR-AF-110a.1 Gross global scope 1 emissions

TR-AF-110a.2 Discussion of long-term and short-term strategy or plan to manage scope 1 emissions, emissions reduction targets, and an analysis

of performance against those targets

48, 51

TR-AF-310a.1 Percentage of drivers classified as independent contractors

TR-AF-310a.2 Total amount of monetary losses as a result of legal proceedings associated with labour law violations

TR-AF-430a.2 Total greenhouse gas (GHG) footprint across transport modes

222

TR-AF-540a.1 Description of implementation and outcomes of a Safety Management System

217

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [102-8]: Information on employees and other workers

Headcount

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Total employees 3,946 2,672 93 48 3,937 4,284

Total female permanent employees 788 601 41 17 290 269

Total male permanent employees 725 552 52 31 838 785

Total female temporary employees 1,076 676 0 0

2,809*

280

Total male temporary employees 1,357 843 0 0 2,950

Total female full-time employees 1,855 1,270 41 17 294 260

Total male full-time employees 2,075 1,390 52 31 1,369 1,425

Total female part-time employees 9 7 0 0

2,274*

Total male part-time employees 7 5 0 0 2,591

Total contractors 4,707 5,329 3 1 n/a n/a

Total female contractors (mandatory contract) 0 0 2 0 n/a n/a

Total male contractors (mandatory contract) 5 2 1 1 n/a n/a

Total female contractors (commission contract) 121 233 0 0 n/a n/a

Total male contractors (commission contract) 362 724 0 0 n/a n/a

Total female contractors (internship contract) 2 0 0 0 n/a n/a

Total male contractors (internship contract) 3 0 0 0 n/a n/a

Total female contractors (self-employment) 43 39 0 0 n/a n/a

Total male contractors (self-employment) 231 201 0 0 n/a n/a

Workers under supervision or/and seasonal workers (without division into women and men) 3940 4040 0 0 n/a n/a

Methodology: All entities are included in the calculation besides InPost Italia Srl. Calculations based on data coming from the internal ERP system and local data files collected by responsible person. Dates of 31.12.2021 and 31.12.2020 respectively.

* No gender division, total value.

GRI Index

GRI [102-55] continued

218

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [201-1]: Direct economic value generated and distributed

2021 2020

1 Direct economic value generated 4,581,881,486 2,514,369,537

Revenues

4,581,881,486 2,514,369,537

2 Economic value distributed 2,232,866,122 561,604,445

Operating costs 0 0

Employee wages and benefits

606,285,439 255,309,825

Payments to providers of capital

1,371,453,436 198,902,164

Payments to government

252,788,685 106,118,755

Community investment

2,338,561 1,273,700

3 Economic value retained 2,349,015,365 1,952,765,092

Economic value generated presents the wealth produced by the Company and its impact on key stakeholders. It is a sum of economic value retained and economic value distributed.

Please be aware that the data presented in the table is not consistent with EBITDA.

All entitites included in the calculations. Data collected from entities donations and sponsorship as well as internal Accounting program.

About the

Report

219

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

About the Report

continued

GRI [202-1]: Ratios of standard entry level wage by gender compared to local

minimum wage

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Ratio of the female entry level wage of the organisations to the minimum wage 1.14 1.06 1.73 1.54 1.00 1.00

Ratio of the male entry level wage of the organisations to the minimum wage 1.14 1.06 1.40 1.63 1.00 1.00

GRI [301-1]: Materials used by weight or volume

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Total exploitation of cardboards in [t] 0 0 n/a n/a 852 67

Total exploitation of plastics in [t] 0 0 n/a n/a 643 669

Total exploitation of polyester in [t] 0 0 n/a n/a 39 0

Total exploitation of stretch foil [t] 11.64 0 n/a n/a 0 0

Total exploitation of paper [t] 36.28 32.16 n/a n/a 17 15

Methodology Entities included: Integer.pl S.A., Integer Group Services sp. z o.o., InPost sp. z o.o., InPost Paczkomaty Sp. z o.o., Mondial Relay Societe par Actions Simplifee (operation in France). Stretch foil exploitation calculated in line with Biosystem

database. Rest of the data was based on invoices.

GRI [301-2]: Recycled input materials used

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Total weight of used poly mailers in t 456 0 n/a n/a n/a n/a

Total weight of recycled poly mailers in t 127 0 n/a n/a n/a n/a

220

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

About the Report

continued

GRI [302-1] Energy consumption

within the organization

Mondial Relay Société par Actions Simplifiée

MWh GJ

2021 2020 2021 2020

Non-renewable sources Natural gas

2,891 2,218 10,407.6 7,984.8

Diesel oil

2,020 1,630 7,272 5,868

Total

4,911 3,848 17,679.6 13,852.8

Purchased electricity Electricity

5,572 4,637 20,059.2 16,693.2

Total

5,572 4,637 20,059.2 16,693.2

Total energy

consumption

10,483 8,485 37,738.8 30,546

221

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

About the Report

continued

GRI [302-1] Energy consumption within

the organization

InPost S.A. and PL subsidiaries

MWh GJ

2021 2020 2021 2020

Non-renewable sources Natural gas 36,607,10 16,728.82 131,785.55 60,223.75

Petrol (gasoline) 3,907.55 3,103.10 14,067.16 11,171.17

Fuel oil 73.81 103.27 265.72 371.76

Diesel oil 3,719.21 2,747.99 13,389.14 9,892.77

Total 44,307.66 22,683.18 159,507.58 81,659.45

Purchased electricity from renewable

energy sources

Green Certificates 211.99 0 763.16 0

Total 211.99 0 763.16 0

Purchased electricity and heating Electricity (offices) 230.62 397.10 830.23 1,429.56

Electricity APM 21,366.51 14,881.94 76,919.45 53,575.00

Electricity branches

(estimated)

11,475.60 6,983.56 41,312.16 25,140.81

EV fleet 177.00 70.60 637.20 254.16

Heating, including

steam consumption

and cooling

641.15 35.14 2,308.13 126.50

Total 33,890.88 22,368.34 122,007.17 80,526.03

Total energy

consumption

78,410.53 45,051.52 282,277.91 162,185.48

Methodology: Entities included: Integer.pl S.A., Integer Group Services sp. z o.o., InPost sp. z o.o., InPost Paczkomaty Sp. z o.o., Mondial Relay Société par Actions Simplifiée (for Mondial Relay Société par Actions Simplifiée only operations in

Francewere included). Data was not collected for Inpost UK. No energy or fuel contracts are made for InPost S.A. and InPost Technology S.a.r.l.

Calculations based on invoices and data from the Fleet Department. Calculations are based on the database. Some data entries of the calculations are based on estimation i.e. financial data was converted into energy units at average prices in

2020/2021.

KOBIZE calorific values were used.

Density: gasoline - 0.8g / cm3; fuel oil - 0.84g / cm3; diesel oil - 0.84 g / cm3

Natural Gas price: 2020 - 1.32 PLN / m3, 2021 - 1.43 PLN / m3

Electricity price: 2020 - 0.58 PLN / kWh, 2021 - 0.60 PLN / kWh.

The natural gas consumption in the branches was calculated based on the gas price (73% of the total cost), the remainder was estimated.

Electricity consumption in branches was known for 60% of energy, the rest was estimated.

The total electricity consumption by APMs was based on the energy cost for 85% of electricity, the remaining part was calculated assuming the energy cost of PLN 100 per parcel machine per month for 1700 parcel machines.

222

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [305-1, 305-2, 305-3]: GHG emissions in tCO

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

Activity Type 2021 2020 2021 2020 2021 2020

Stationary combustion 6,658.85 3,055.58 n/a n/a 489.4 368

Mobile combustion 1,931.77 1,469.84 n/a n/a 509.2 409

Hydroflurocarbons (HFCs) 181.72 53.89 n/a n/a 0 0

Scope 1 - Total 8,772.34 4,579.31 n/a n/a 998.6 777

Purchased electricity - location based 24,928.98 16,638.24 n/a n/a 304.1 183

Purchased electricity - market based 24,771.05 16,638.24 n/a n/a 304.1 183

Purchased heat and steam 227.58 12.47 n/a n/a 0 0

Scope 2 - location based + heat and steam 25,156.57 16,650.71 n/a n/a 304.1 183

Scope 2 - market based + heat and steam 24,998.63 16,650.71 n/a n/a 304.1 183

Purchased goods and services 15,494.10 1,357.32 n/a n/a 6424 5,415

Capital goods 5,753.33 3,208.65 n/a n/a 1,526.7 1,359

Fuel-and energy-related activities (not included in scope 1 or scope 2) 0 0 n/a n/a 235.9 277

Upstream transportation and distribution 176,427.92 154,181.47 n/a n/a 47,799.7 46,696

Waste generated in operations 1,423.92 754.36 n/a n/a 119.5 81

Business travel 73.84 30.81 n/a n/a 30.1 41

Employee commuting 2,542.86 2,560.04 n/a n/a 1,707.8 1.31

Downstream leased assets 0 0 n/a n/a 15.9 0

Investments 5,694.93 1,429.32 n/a n/a 0 0

Scope 3 - Total 207,410.90 163,521.96 57,859.5 47,103.084

Total 241,339.81 184,751.98 59,162.2 48,063.1

Biogenic emission 0 0 32 25

Francewere included). Data was not collected for Inpost UK. No energy or fuel contracts are made for InPost S.A. and InPost Technology S.a.r.l.

Calculations are based on Greenhouse Gas Protocol. Calculations for InPost SA are made in the GHG Emissions Calculation Tool. Calculations for Mondial Relay Société par Actions Simplifiée were based on the Base Carbone

ADEME database. GWP

values from the IPCC AR5 Report were used. Calculations take into account local (national) conditions concerning, inter alia, emissivity of electricity and heat generation (URE, KOBIZE). Gases included in the calculation - CO

, HFC.

The year 2020 was adopted as the base year, as this year was the first time the carbon footprint calculation was performed.

Consolidation criterion: 100% financial and operational.

About the Report

continued

223

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [305-4]: GHG emissions intensity

InPost SA and PL

subsidiaries

Mondial Relay

(French operations)

2021 2020 2021 2020

(Numerator) Absolute GHG emissions (in tons of CO

equivalent) 241,340.08 184,751.78 59,162.2 48,063.1

Selected denominator (parcels) 424.3m 307.7m 145m 12.2m

GHG emissions intensity ratio t 0.000568781 0.000600413 0.000408015 0.000419814

GHG intensity not calculated for UK operations due to lack of available data.

GRI [305-5]: Reduction of GHG emissions

InPost SA and PL

subsidiaries

2021 2020

Decrease in emissions due to purchase of electric vehicles in CO

e 356.9 3.4

Decrease in emissions due to purchase of green certificates in CO

e 195.5 0

GRI [306-1]: Waste generation and significant waste-relate impacts

InPost SA and PL

subsidiaries

2021 2020

Quantity of Foil packaging in t 0 2,104

Quantity of cardboard packaging, foil packaging in t 1,827 0

About the Report

continued

224

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [306-3]: Waste generated

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

Headcount

2021 2020 2021 2020 2021 2020

Total weight of hazardous waste in t

(Waste from non-regulatory shipments)

28 22 n/a n/a n/a n/a

Total weight of non-hazardous waste in t

12,740 7,573 n/a n/a n/a n/a

Of which:

Mixed municipal waste 11,104 6,479 n/a n/a n/a n/a

Paper and cardboard packaging 1,253 752 n/a n/a n/a n/a

Plastic packaging 383 342 n/a n/a n/a n/a

Total weight of waste in t

12,769 7,595 n/a n/a n/a n/a

About the Report

continued

225

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [401-1]: New employee hires and employee turnover

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Total new employee hires 1,865 1,401 83 29 277 407

Total female new employee hires 812 578 38 10 70 127

Total male new employee hires 1,053 823 45 19 207 280

Total new employee hires < 30 years old 1,027 758 33 3 132 185

Total new employee hires within the age group 30-50 791 600 47 25 129 190

Total new employee hires within the age group 50+ 47 43 3 1 16 32

Rate of new employee hires 47.2% 52.4% 89.2% 60.4% 24.6% 38.6%

Rate of female new employee hires 43.5% 45.2% 92.7% 58.8% 24.1% 47. 2%

Rate of male new employee hires 50.6% 59.0% 86.5% 61.3% 24.7% 35.7%

Rate of new employee hires < 30 years old 59.8% 64.5% 103.1% 42.9% 43.0% 63.4%

Rate of new employee hires within the age group 30-50 39.0% 44.7% 82.5% 73.5% 19.8% 32.6%

Rate of new employee hires within the age group 50+ 23.4% 27.9% 75.0% 14.3% 9.4% 17.9%

Total employee turnover

1,023 574 38 10 199 283

About the Report

continued

226

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [401-1]: New employee hires and employee turnover

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Total female employee turnover 422 227 14 6 48 90

Total male employee turnover 601 347 24 4 151 193

Total employee turnover < 30 years old 523 262 12 2 80 142

Total employee turnover within the age group 30-50 466 284 21 7 96 125

Total employee turnover within the age group 50+ 34 28 5 1 23 16

Rate of employee turnover 25.9% 21.5% 40.9% 20.8% 17.6% 26.9%

Rate of female employee turnover 22.7% 17.8% 34.2% 35.3% 16.6% 33.5%

Rate of male employee turnover 28.9% 24.9% 46.2% 12.9% 18.0% 24.6%

Rate of employee turnover < 30 years old 30.5% 22.3% 37.5% 28.6% 26.1% 48.6%

Rate of employee turnover within the age group 30-50 23.0% 21.2% 36.8% 20.6% 14.8% 21.4%

Rate of employee turnover within the age group 50+ 16.9% 18.2% 125% 14.3% 13.5% 8.9%

Methodology: All entities are included in the calculation besides InPost Italia Srl.

New hires rate: Data calculated using the headcount method according to the formula: number of employees (employment contract) employed in 2021/ number of all employees (employment contract), as of 31.12.2021 and 31.12.2020 respectively.

Turnover rate: Data calculated using the headcount method according to the formula: number of employees (employment contract) who left in the year 2021/ number of all employees (employment contract), as at 31.12.2021 and 31.12.2020

respectively. Data collected in HR systems and local data files collected by responsible person. For Mondial Relay employees we count only for permanent employees (no data for temporary available).

About the Report

continued

227

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [401-2]: Benefits provided to full-time employees that are not provided to temporary or part-time employees

InPost SA and PL subsidiaries InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Provided benefits Same as 2020 Life insurance – group life

insurance

Health care – the employer

provides funding in the amount of

PLN 21/month for each employee

One day off for internship.

Additional days off depending on

the length of service at the Capital

Group, over 3 years – 1 day, over

6 years – 2 days, over 10 years – 3

days.

Multisport card. Co-financing PLN

22.84/month to the card.

Additional insurance for

employees who, due to the type

of work they perform, are at risk of

infection with SARS-CoV-2

Additional health care for the Key

Personnel – the employer provides

full financing for each eligible

employee

Healthcare Benefit option for all,

Dental Plan

Staff Discounts

with retailers

Extended paid holiday

Maternity Pay Benefit

Paid sick leave

Paid holiday + statutory Pension.

Paid Sick leave

Paid holiday

+ statutory

Pension. The

holiday offered in

2020 was above

the statutory

minimum (20

days).

Same as 2020 Profits sharing

Health care

Life insurance

About the Report

continued

228

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [403-9]: Work-related injuries

InPost SA and PL

subsidiaries

Integer Groupe

Services

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020 2021 2020

Minor accidents 47 45 5 0 0 394 395

Serious accidents 0 0 0 0 0 0 0

Rate of recordable work-related injuries 1.25 1.36 0.49 0.22 – – 50.99 32.54

Methodology: Entities included: InPost Technology S.a.r.l, Mondial Relay Société par Actions Simplifiée, Integer.pl S.A., Integer Group Services sp.z o.o., InPost sp. z o.o., InPost Paczkomaty Sp. z o.o. and temporary employment agencies.

H&S reports do not present data for Inpost S.A. and Inpost UK Limitted.

Data collected separately for Poland and France (number of incidents and worked hours). Rate of recordable work-related injuries = (Number of recordable work-related injuries/number of hours worked) x 200,000.

GRI [404-1]: Average hours of training per year per employee

Women

PL subsidiaries

Men

PL subsidiaries

2021

2020

2021

2020

Average training hours per employee by gender 12.3 1.6 14.7 2.0

Middle

management

Other employees

2021 2020 2021 2020

Average training hours per employee by employee category 26.4 17.3 10.4 0.7

About the Report

continued

229

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [404-3]: Percentage of employees receiving regular

performance and career development reviews

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Percentage of female employees in Management Board receiving regular

performance reviews

0% n/a

n/a n/a 100% 0%

Percentage of female employees in Management Board receiving regular

career development reviews

0% n/a

Percentage of male employees in Management Board receiving regular

performance reviews

100% n/a

n/a n/a 100% 0%

Percentage of male employees in Management Board receiving regular

career development reviews

0% n/a

Percentage of female employees in Senior Management receiving regular

performance reviews

100% n/a

n/a n/a 61.0% 96.9%

Percentage of female employees in Senior Management receiving regular

career development reviews

0% n/a

Percentage of male employees in Senior Management receiving regular

performance reviews

100% n/a

n/a n/a 97.0% 100%

Percentage of male employees in Senior Management receiving regular

career development reviews

0% n/a

Percentage of female employees in Middle Management receiving regular

performance reviews

47% n/a

n/a n/a 60.0% 100%

Percentage of female employees in Middle Management receiving regular

career development reviews

100% n/a

About the Report

continued

230

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [404-3]: Percentage of employees receiving regular

performance and career development reviews

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Percentage of male employees in Middle Management receiving regular

performance reviews

40% n/a

n/a n/a 98.0% 92.0%

Percentage of male employees in Middle Management receiving regular

career development reviews

57% n/a

Percentage of female other employees receiving regular performance

reviews

16% n/a

n/a n/a 69.6% 93.9%

Percentage of female other employees receiving regular career

development reviews

16% n/a

Percentage of male other employees receiving regular performance reviews 17% n/a

n/a n/a 79.4% 78.8%

Percentage of male other employees receiving regular career development

reviews

20% n/a

Percentage of all female employees receiving regular performance

reviews

19% n/a

n/a n/a 65.6% 95.1%

Percentage of all female employees receiving regular career

development reviews

100% n/a

Percentage of all male employees receiving regular performance reviews 20% n/a

n/a n/a 83.3% 81.6%

Percentage of all male employees receiving regular career development

reviews

100% n/a

About the Report

continued

231

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [405-1]: Table 1 – Diversity of employees – Age and sex

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Percentage of female employees 47.2% 47.8% 44.1% 35.4% 25.7% 25.6%

Percentage of male employees 52.8% 52.2% 55.9% 64.6% 74.3% 74.4%

Percentage of employees <30 years old 43.5% 44.0% 34.4% 25.4% 27.2% 27.9%

Percentage of female employees <30 years old 20.1% 20.1% 16.1% 3.4% 7.2% 6.5%

Percentage of male employees <30 years old 23.4% 23.9% 18.3% 22.0% 20.0% 21.4%

Percentage of employees in the age group 30-50 51.4% 50.2% 61.3% 74.0% 57.7% 55.3%

Percentage of female employees in the age group 30-50 25.0% 25.9% 24.7% 25.0% 15.0% 15.3%

Percentage of male employees in the age group 30-50 26.4% 25.1% 36.6% 49.0% 42.7% 40.0%

Percentage of employees within the age group 50+ 5.1% 5.8% 4.3% 0.6% 15.1% 16.8%

Percentage of female employees within the age group 50+ 2.1% 2.5% 3.2% 0.3% 3.6% 3.8%

Percentage of male employees within the age group 50+ 3.0% 3.3% 1.1% 0.3% 11.5% 13.0%

Methodology for Table 1: Data includes employees (employment contract) as of 31.12.2021 and 31.12.2020 respectively.

About the Report

continued

232

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [405-1]: Table 2 – Diversity of employees – Categories

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Percentage of Senior Management female employees 0.1% 0.1% 2.2% 3.2% 3.5% 3.1%

Percentage of Senior Management male employees 0.6% 0.6% 5.4% 9.6% 6.8% 6.4%

Percentage of Middle Management female employees 4.6% 4.1% 7.5% 12.9% 5.2% 6.2%

Percentage of Middle Management male employees 7.0% 4.6% 15.1% 25.0% 13.0% 13.9%

Percentage of female other employees 40.4% 43.4% 34.4% 16.3% 17.0% 16.2%

Percentage of male other employees 47.3% 47.2% 35.4% 33.0% 54.3% 54.2%

Methodology for Table 2: Data includes employees (employment contract and self-employed (B2B)) as of 31.12.2021 and 31.12.2020 respectively.

GRI [405-1]: Table 3 – Diversity of governance bodies

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Percentage of female members of governance bodies 16.7% 16.7% 0.0% 0.0% 20.0% 20.0%

Percentage of male members of governance bodies 83.3% 83.3% 0.0% 0.0% 80.0% 80.0%

Percentage of female employees in Management Board 0.0% 0.0% 0.0% 0.0% 20.0% 20.0%

Percentage of male employees in Management Board 100.0% 100.0% 0.0% 0.0% 80.0% 80.0%

Percentage of female employees in Supervisory Board 28.6% 28.6% 0.0% 0.0% 0.0% 0.0%

Percentage of male employees in Supervisory Board 71.4% 71.4% 0.0% 0.0% 0.0% 0.0%

Methodology for Table 3: Data includes employees (employment contract and self-employed (B2B)) as of 31.12.2021 and 31.12.2020 respectively.

Overall methodology for GRI 405-1: All entities included in the calculations apart from Locker Inpost Italia srl.

Data collected in HR systems (for Poland - Optima) and local data files collected by responsible persons.

For Mondial Relay employees we count only for permanent employees (no data for temporary).

About the Report

continued

233

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [405-2]: Ratio of basic salary and remuneration of women to men

InPost SA and PL

subsidiaries

2021 2020

Ratio of the basic salary of women to men for Senior Management 102.8% 90.0%

Ratio of the basic salary of women to men for Middle Management 76.4% 77.6%

Ratio of the basic salary of women to men for other employees 83.7% 82.7%

Ratio of the remuneration of women to men for Senior Management 90.3% 75.7%

Ratio of the remuneration of women to men for Middle Management 65.3% 69.1%

Ratio of the remuneration of women to men for other employees 76.5% 76.3%

About the Report

continued

234

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

GRI [418-1]: Substantiated complaints concerning breaches of customer

privacy and losses of customer data

InPost SA and PL

subsidiaries

InPost UK Mondial Relay

2021 2020 2021 2020 2021 2020

Substantiated complaints received concerning breaches of customer privacy: 45 40 n/a n/a 0 0

– Complaints received from outside parties and substantiated by the organisation 40 36 n/a n/a 0 0

– Complaints from regulatory bodies 5 4 n/a n/a 0 0

Total number of identified leaks, thefts, or losses of customer data. 2 2 n/a n/a 1 n/a

Methodology: All complaints for InPost UK are included in InPost SA and PL subsidiaries total.

Please note that we do not maintain a separate register for InPost S.A and InPost UK. Records of data subjects’ requests and complaints are kept separately for InPost Technology S.a.r.l, Integer.pl S.A., Integer Group Services sp.z o.o., InPost sp. z o.o.,

InPost Paczkomaty Sp. z o.o. and Mondial Relay.

About the Report

continued

235

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Non-financial Reporting

Directive (NFRD)

ESG governance – policies, management systems, certifications, due diligence (according to NFRD)

Area InPost S.A./Integer.pl/Integer Group Services/

InPost Sp.zoo/InPost Paczkomaty sp zoo.

InPost UK Mondial Relay

Integrated management system

Integrated

management

system

Integrated Management System/Quality Manual

(KZSZ – Księga Zintegrowanego Systemu Zarządzania) covering:

ISO 9001 – Quality management

ISO 14001 – 2016 – Environmental management

ISO 45001 – Occupational health and safety

ISO 28000 – 2021 – Security management

n/a n/a

Environmental issues

Environment

policy

Integrated Book Management System/Quality Manual

(KZSZ – Księga Zintegrowanego Systemu Zarządzania)

n/a Regulatory energy audit NF EN 16247

Standart 2015-2019,

Waste sorting 5 streams Decree 2016-

288 2021

Regulatory GHG Assessment 2018

ISO 14 001, 50 001 n/a n/a

Description of the business model has

been presented in the Strategic Report

(page 24) as well as in the ESG Report

(section THE IMPACT WE HAVE AND

ROLE WE MAY PLAY FOR SUSTAINABLE

DEVELOPMENT).

Principal risks including ESG ones,

linked to the InPost’s operations,

Business relationships, products or

services that are likely to cause adverse

impact, and how the entity manages

those risks have been presented in

the Governance Report (section Risk

management).

Bases of ESG governance (policies,

Management systems, certifications,

due diligence) for material matters

including environment, social and

employee matters, respect for human

rights, anti-corruption and bribery

have been presented in the tables

below. Outcomes and key performance

indicators have been presented in the

Section GRI TABLES – DETAILED ESG

INDICATORS.

Full NFRD index:

236

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Non-financial Reporting

Directive (NFRD)

continued

Area InPost S.A./Integer.pl/Integer Group Services/

InPost Sp.zoo/InPost Paczkomaty sp zoo.

InPost UK Mondial Relay

Employee issues

Human resource

management

Code of Conduct 2021 Code of Conduct 2021 Labour Code,

Road transport collective agreement

(IDCC 16)

Human

Resources –

supporting

policies

MBO regulations

Working Regulations

Teleworking Regulations

Remuneration Policy

Bonus Policy

Sickness policy 2021

Redundancy policy 2021

Paternity leave policy 2021

Maternity leave policy 2021

Managing underperformance policy

2021

Jury service policy 2021

Holiday policy 2021

Grievance policy 2021

Flexible work policy 2021

Expenses policy 2021

Equal opportunities policy 2021

Employee data protection policy 2021

Disciplinary policy 2021

Dependent leave policy 2021

COVID-19 policy 2021

Bereavement leave policy 2021

Quality of life at F6 professional

equality between men and women,

and disabled workers 2022-2025

Working hours agreement 2017

Difficult work agreement 2021-2024

Agreement on the management jobs

and career path 2020-2023

IT Charter 2019

Home office agreement

2020

Respect for human rights

Code of conduct

for suppliers

Code of conduct for suppliers

2021

Code of conduct for suppliers

2021

Code of conduct for suppliers

2021

Diversity Diversity Policy 2021 Diversity Policy 2021 Diversity Policy 2021

Anti-harassment

and anti-

discrimination

Anti-Harassment and Anti-Discrimination Policy 2021 Anti-Harassment and Anti-

Discrimination Policy 2021

Anti-Harassment and Anti-

Discrimination Policy 2021

Harassment investigation process

2019

237

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Area InPost S.A./Integer.pl/Integer Group Services/

InPost Sp.zoo/InPost Paczkomaty sp zoo.

InPost UK Mondial Relay

Counteracting corruption, bribery (ethical issues)

Code of ethics Code of Conduct 2021 Code of Conduct 2021 Code of Conduct 2021

Anti-corruption

and conflict of

interests

Anti-Corruption Policy Anti-Corruption Policy Anti-Corruption Policy

Carto Risques corruption MR v5 (Risk

assesment) 2020;

Company internal Rules; 2105 Anti-

corruption memo 1998;

InPost compliance rules

2022;

Procédure Embargo v3 (Embargo

procedure) 2019

Gift policy Code of Conduct 2021 Code of Conduct 2021 Procédure Cadeaux 2020

Raising concerns

mechanism

Whistleblowing Policy 2021 Whistleblowing Policy 2021 Otto group Code of ethics 2019

Whistleblowing Policy 2021

Insider Trading Insider-Trading Policy 2021 Insider-Trading Policy 2021 Insider-Trading Policy 2021

Occupational Health and Safety

Health and Safety

policies

Integrated Book Management System/Quality Manual (KZSZ – Księga

Zintegrowanego Systemu Zarządzania)

Health and Safety policy 2021 Committees for Health, Safety and

Working Conditions (CSE);

conditions commission (CSSCT)

2018 – 2022

ISO 45001 n/a n/a

Non-financial Reporting

Directive (NFRD)

continued

238

OUT OF THE BOX | www.inpost.eu

InPost S.A. | Annual Report & Accounts 2021

InPost out of the box

Management report

Sustainability report

Financial statements

Corporate governance

About the report

Area InPost S.A./Integer.pl/Integer Group Services/

InPost Sp.zoo/InPost Paczkomaty sp zoo.

InPost UK Mondial Relay

Product quality

Quality

management

system

Integrated Book Management System/Quality Manual (KZSZ – Księga

Zintegrowanego Systemu Zarządzania)

n/a n/a

ISO ISO 9001 n/a n/a

Quality

management for

couriers

Quality Policy (F_KZSZ 1 – Polityka Zintegrowanego Systemu Zarządzania) n/a n/a

Social issues

CSR and

sponsorship

Marketing communication policy 2021 n/a n/a

Risk management

Enterprise risk

management

Enterprise risk management policy Business continuity plan (MR Plan

de continuité de l’activité V 1.1 Coro-

20200312) 2020

Cyber security issues

Personal Data

Security

Personal Data Security Policy IT Charter 2019

GDPR 2018

Information system security policy

(PSSI Politique de sécurité du SI)

Non-financial Reporting

Directive (NFRD)

continued