After years of struggle with the Polish Post have given them a box.
Rafał Brzoska *: Logic is the key to understanding certain actions. In the three segments of our business are growing three times faster than the market in one eight times faster, the next we are a monopoly. Operation ordinary letters is the only service that brings us to the loss. And kills the positive effects of other services. What in this situation is doing a good manager, keeping in mind the principle that we are as strong as our weakest dip? The peloton cut off the weakest players and thus the group goes faster. We just did it. And do not we give the market the Polish Post.
Given the scale of cuts hard to cofnęliście ….
With the delivery of letters not retreated, but only limited the scope of services by 30 per cent., Which was responsible for the fixed costs of approximately 55 percent. It is difficult this decision can not be called a wise and obvious. I believe that as at the end will be received by the shareholders. We leave the market, which moves back and focus on the segment that gives perspective considerable profits. So we shareholders’ money.
There will be another release in InPoście?
This stage is closed. We can only completely disable the service. Other services are provided throughout the country. In this sense, I say, that does not forgive anything.
He got you in his own trap, because he shot competition. A Mail only took the gloves.
Our company continues to be a player in the segment letters. It is true, however, that large customers have used InPostu as a bunny who had to race with the Mail on prices. At the rate list price, of two gold Mail service offered simple letter for 41 cents. And we naively did the same. Gained on the only large customers.
Now you utter the agreement. ‘d Expect it to pay more?
We talk very openly with all the customers and translate them our position.
We say directly: we cease to sponsor large customers, large Western corporations, banks, telecoms, insurance. I say that ninety or pay a few cents, because in our opinion reasonable price, keeping a counteroffer for e-mail, or from January to pay 2 zł, with good winds 1,8 zł. For big players, this means an increase in cost of 15 million dollars per year. Now, each of them must therefore answer the question of whether he wants today to pay a few million more, and keep diversifying or half a year to pay 15 million more.
280 million letters that InPost delivered the last year, what percentage of the market?
UKE says that in 2015 the Polish market served 1 467.97 million items of correspondence, so our 287.2 million constitutes about 19 per cent., But less and less.
You will no longer participate in tenders for handling letters?
We fulfill their duties until the end of services. There is little public tenders, which concerned the whole of the country. With nobody we break contracts, we do not pay anyone a penalty. We do not become the new tenders, or do not enter into new contracts at unfavorable conditions.
What’s the dispute about the tender for Shared Services Centre?
This is a case which lawyers at the Jagiellonian University remake already with the students. Nothing forgive. We look forward to movement of the second hand of a watch in his hand. Counter beats.
Two years ago, just when the tender for service CUW, it seemed that you cooperate with the Polish Post.
Previous Post management was red-hot in the fight with us. Present, although not yet chairman, he gives the impression that he understood the level and scale of internal problems and the current market situation. The two are the only Polish operators in this market need to work together and compete with the rest – with the giants of logistics abroad. We pull out an olive branch. Maybe on the other side someone thinks of cooperation?
In what areas can you work?
There are many areas for cooperation. Mail does not have an electronic system of delivery, the system we have and are happy it provide you. They do not have it to spend tens of millions. We duplicative structure facilities, and yet we could connect it to thicken the network click & amp; collect. Together we would have a network eight times greater than the largest foreign player. These are natural synergies. In addition, we may share Mail Paczkomaty, as we did in the UK providing paczkomaty DHL UK. I could just list goes on. Zakopałbym ax as soon as possible, because the war does not benefit anyone.
The cooperation may, however, does not come into play due to the policy. The Lord is engaged on the side of the party, which today is in opposition to the PiS. No regrets you?
Wystąpiłbym at every congress elections, in which as a representative of entrepreneurs wyrażałbym opinions of my environment.
But there was you at the Congress of Modern.
If I was invited to the congress PiS zająłbym same position. Certainly not wystąpiłbym the Congress PO, because that government fought us like no other. I said the same thing, what many entrepreneurs with governments PO. It was lost to the Polish years.
What if today Ryszard Petru urged supporters who were with him at the beginning. Would support him?
There is no such proposal, so I do not have to think about it. I am not a member of any organization, any finance this or not – neither the association nor the more a political party. I’m for a strong voice of Polish entrepreneurs and obvious advocate of solutions that enable employers to increase the number of jobs and the employee to achieve higher revenues, and an opponent of those that raise labor costs by charging them employed. Under the current system in Poland, most of the time employee working for the state. An employee earning little money and often do not even know that most of the money the state takes. I am in favor of the employer to pay 100 percent. the real salary of the employee to the employee, and then let all the taxes the state collects from the bank account of the employee. Power for it does not agree, because most Poles survived severe shock to see how much it really earns and how much you pay in taxes.
Investors do not you have a bad political commitment? In the end, Integer is not the Lord’s private company, such involvement could harm the business.
They asked only whether or not to pass the policy and there was a clear answer. I do not like businessmen who refuse to occupy a clear position, just because they are doing business with the State. This is a cowardly attitude.
And I, first I am not a coward and not afraid to speak openly. Secondly, there is nothing that affected the valuation of companies on the Warsaw Stock Exchange, as the decision on the seizure of part of the savings from the OPF to ZUS and OFE marginalized. That the government has taken such a decision? I do not fear to say that it was theft. They stripped us of thick billions of dollars.
Now on the wallpaper is a plan to nationalize pension funds. Should this happen, it will look like shareholders integer?
37 percent. would ZUS. Rafal Brzoska in Integerze already anyway.
From the peak of the bull market quotations Integer fell more than 80 percent. InPost made its debut on the stock exchange in October last year, and within a few months the value of the company plunged by half. What is your opinion come from?
I try not to comment on the behavior of the forces of supply and demand because the market is not discussed. I do not offend the market – so investors currently value our business and they have every right to do. In contrast, only after some time you will be able to determine who was right and who was wrong.
Is looking through the prism of the behavior of the share price you have a feeling that the failed investors?
In this situation, the company’s management is always at the forefront of responsible and I have that responsibility not running. I am very resistant to negative emotions and reviews, including but not limited to my job. If someone says that our strategy is wrong, I’m always ready to talk about it. If the reason for the recent decline of the course is to be a management decision InPost to withdraw from the use of letters outside the big cities and the termination of unprofitable contracts, this is irrational. This market segment is most vulnerable to political risk, also generated significant fixed costs. It was a brave and the best possible decision for the company and its investors. That investors assess it negatively today, it does not mean that they do not change their minds future. In 2012 we sold the business ulotkowy and also were removed from their faith and worship that we get rid of a permanent source of cash. A year after the transaction Distribution Reliable was valued in the books of the buyer to zero. Now everything in Brzoska goes wrong and hopeless, but I have a different opinion on the subject. We entered the market for courier services and in seven months we have reached the million parcels a month, which other companies were taking up to eight years. We have the fastest growing business courier in Europe.
What is the plan for the development of business courier?
This year, across all channels obsłużymy well over 50 million shipments.
key to assess the Lord’s activities in the public market is a project paczkomatowy.
with his adversaries eager to discuss the topic, provided that we talk about facts and figures. We started with 400 machines in Poland, now we have 5 thousand. devices and we are the global leader in this technology.
But the number fell far greater: 16 000 parcel machines by the end of 2016 years. Even three years ago Lord spoke about 10 thousand. devices in the United States. This is not.
Please find my speech before two years, in which I talk about the fact that we focus on the development in four countries: the United Kingdom, France, Italy and Canada. It was not my authoritarian decision, but taken by the shareholders of the company easyPack, which implements the project paczkomatowy on foreign markets. We changed the plan for the financing and development, limiting the number of markets and the number of planned parcel machines from 16 to 8-9 thousand.
Around the project parcel machines for several years wound the spiral of expectations. Now, investors can hear opinions that you do not “hand over” the promised results ….
Once again I repeat: let’s talk about facts and figures. We also took part in building those expectations, because they have the basics, assuming bring 16 thousand. parcel machines. But this assumption two years ago verified. According to the plan from 2013 years we have in Poland 800 machines, while there were 1,600 at the end of 2015. And if we put the next we might actually close the business, because there will be no paczkomtach. This by the way charges that do not “we deliver” results.
Sixteen thousand parcel machines was to ensure the viability of the project. Is a smaller number of machines venture will also be brought profits?
In Poland, the network is profitable for three years. The market no longer requires such intense attention operational, although we will continue to bear here significant capital investment. Now we focus on the UK. There need to put about 600 new parcel machines, another 740 in France, 700 in Italy and 1,000 in Canada. In the order in which I mentioned these markets will become profitable for us. Finally, the purpose of reach with less financial than initially planned.
When did this happen?
I do not want to manage the expectations of investors.
But the Lord himself admitted that manage them .
I learned from the lessons. I will not give the exact date. In the UK, we plan to have clients who, under the terms of transaction volume correspond to half of the entire Polish e-commerce market. Some unknown is how it will konwertowało on our financial results, but after three months from the start of broadcasts with key customers will be able to measure precisely say when we reach the threshold of profitability.
Do not you think that if the project was so paczkomatowy perspective, how do you it shows that when the valuation of the company should appear takeover bid integer? Just announce the call …
about a year I think about it. The fact that such an offer did not show up, does not mean it will not appear in the future. Preparing such offer requires time. But it can also be so that potential buyers can not see the occasion of the acquisition of integer, if only because the group structure is quite complicated and not everyone has to be understood.
Can a reversal of the spiral of emotions around the Lord of projects due to the the fact that the Lord was seen as a predator winner. And now the Lord moves back …
I’m trying to avoid interviews especially in high-sounding statements. But the biggest battles have been won by those strategists who knew when to back off for a pre-planned positions. It is not worth rashly judge this type of movements of forces adversary, because you can expect the hits in a totally unexpected direction.
Performs pan at once several different projects – Courier Post, paczkomaty, now working on lodówkomatami. Crushed.
I agree that you should not catch a few magpies by the tail, if they fly in a different direction.
Lord are flying in the same?
please note, what would be the InPost, if not four years ago began the project parcel machines. After our message about bringing the first 150 machines the head of one of the courier companies stated that Poles will never want to receive packages on their own, because they love to get them home. A Brzoska would deploy hundreds of machines to hare a place in the market. The same president loses today, the most in favor of parcel machines. What would happen if we had not launched in June courier business, would look like a group of financial flows and InPostu and volume parcel? I said more than 50 million shipments this year. Without these two channel packages would be only 7 million. We do not shredded, and consistently implement the strategy, which consists in providing logistics services. So far, I put a dot here. Now I’m talking about logistics services for e-commerce. We are the best in Poland and we want to be the best in other countries. If someone says it’s incoherent strategy, it’s probably not thinking logically, or is malicious.
You’re extremely confident, given the drop in quotations and the atmosphere around Integer.
it is not a matter of good humor but cool thinking. I’m not here president hired for millions of dollars per month only as the largest shareholder of the company, who receive no salary and loses this fall, just as my partners or funds. I’m as angry as they were, either, and more.
One of the presidents, who sold his business e-commerce (Finder), a global player (Tom Tom) stated that financial investors can not adequately measure of this kind projects because they look analyze numbers superficially.
if I said how much it is worth, the company, which has delivered more than 50 million shipments and how many investors are in a position it to invest, you would not believe.
Well, how much?
Do not tell, because I just say that again Brzoska says that the assets within the group are worth X, while the capitalization of Y. Just look at the benchmark transactions concluded by companies in Poland courier, then you will understand that my confidence is not due to shoes. It is the belief that we are building projects that are worth a lot more than they valued the market.
* Rafal Brzoska is the boss Integer.pl Group, which includes InPost
No comments:
Post a Comment