1. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Responding to Postal Regulation in Europe Dr. Botond Szebeny PostEurop Secretary General POC, 28 April 2010, Bern

2. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Postal stakeholders 2 / 20 Postal companies RegulatorsEU BodiesMedia Share- holders Trade Unions National and local govern- ments Responding to European Postal Regulation

3. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 PostEurop Central & Eastern European CEO Forum 3 / 20 Successful Forum 30 Top Executives (among them 11 CEOs + 6 Deputy CEOs) shared views and ideas on 14-15 April 2010 in Budapest Topic: ‘The Postal CEOs and the regulatory agenda’ Main outcome: Postal CEOs and top- managements have a crucial role in actively influencing the regulatory environment Responding to European Postal Regulation

4. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 4 / 20 “Excellent regulatory management is worth the effort!” Typical NPV, indexed units -20 15 10 20 30 SOURCE: McKinsey "Do nothing" declining cost Cost reduction Commercial levers Downside from aggressive deregulation, low pricing Upside from regulatory management Positive value of the post! DISGUISED EXAMPLE Responding to European Postal Regulation

5. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Main Activity Pillars of PostEurop VISION Regulatory environment Joost Vantomme / Isabel Tavares Social environment Philippe Hlavacek Operational environment Jurgen Lohmeyer Market environment Jan Sertons Communication Ronny Kaufmann Resources* Murray Buchanan Intelligence Ingimundur Sigurpalsson *Lev Razovskiy is responsible for the IT aspects and Joe Gafà for the financial resources aspects under the Resources Transversal. 5 /20 Responding to European Postal Regulation

6. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Regulatory Affairs Regulatory Environment European Affairs Committee (EAC) International Affairs Committee (IAC) 6 / 20 Responding to European Postal Regulation

7. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 1. The European Affairs Committee (EAC) Mission is to contribute to shaping the European regulatory postal environment according to the industry and Members’ interests Main objectives: link 27 EU operators towards EU institutions, EU decision-makers lobbying tool on issues of common interests (based on Position Papers) platform for exchange of views, information, best practice on EU regulation Membership: Public postal operators of the 27 Member States of the EU Public postal operators of the 4 EFTA countries (Iceland, Liechtenstein, Norway, Switzerland) 7 / 20 Responding to European Postal Regulation

8. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Triangle of EU Decision Making Bodies Responding to European Postal Regulation8 / 20 EU ParliamentEU CommissionEU Council

9. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Process for Position Papers at PostEurop 9 / 20 Issue Identified Discussion Approval Process Lobbying Latest examples for PostEurop Position Papers: Draft Directive on Combating Late Payment – difference between utility undertakings and public authorities WIK Study – ‘Role of Regulators in a more competitive postal market’ EU Postal VAT - resume negotiations on a new VAT legislation for postal services Services of General Economic Interets - horizontal evaluation of network industries Responding to European Postal Regulation

10. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 1.1 EU Postal Directive - Major milestones 1992Green paper on the development of the single market 1993Full liberalization (FMO) in Sweden and in Finland 199797/67/EC – First Postal Directive Reserved area – up to 350 grams Quality targets for Intra-Community cross border mail (J+3: 85%, J+5: 97%) 20022002/39/EC – Second Postal Directive 2003 Reserved area – up to 100 grams 2006FMO in the United Kingdom Reserved area – up to 50 grams 2008FMO in Germany 2008/6/EC – Third Postal Directive: FMO in 2011/13 2009FMO in The Netherlands and Estonia 10 / 20 Responding to European Postal Regulation

11. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 FMO up to 01.01.2010 FMO on 01.01.2013 FMO on 01.01.2011 ESPT FR BE LUX NL DE UK M T IE IT C Y GR BG RO HU SK CZ AT SI PL LT PL LV EE FI SE DK Full Market Opening: status & schedule Full Market Opening in the EU: Status & Schedule 11 / 20 Responding to European Postal Regulation

12. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Key Implementation Elements of EU Postal Directive (1) USO scope USO designation mechanism Cost & Financing of the USO Licensing 12 / 20 Responding to European Postal Regulation

13. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Key Implementation Elements of EU Postal Directive (2) Access to the Network Price Setting Criteria Role of Regulatory Authorities Social related matters 13 /20 Responding to European Postal Regulation

14. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 The 6th VAT Directive is exempting the supply by the public postal services of services […] 2007 Court case TNT vs UK State & Royal Mail : Distortion of competition Referral to EU Court of Justice (ECJ) – How to understand the exemption? Court of Justice: "Public postal services" cover operators who provide, in a Member State, all or part of the universal postal service. Are only exempted, postal services supplied in its capacity as USP and not supplies of services for which the terms have been individually negotiated 1.2 EU Postal VAT (1) 14 / 20 Responding to European Postal Regulation

15. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Current issues: The distortion of competition remains What are ’individually negotiated terms’? Next steps: Spanish and Belgian EU Presidency to come with a solution before end of 2010 EU Postal VAT (2) 15 / 20 Responding to European Postal Regulation

16. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 1.3 Other important EU legislation elements  WTO/GATS negotiations  Aviation Security  Transport & Energy  Monitoring Legislation: Services of General Interest Standardisation Data & Consumer Protection Financial Services E-Services 16 / 20 Responding to European Postal Regulation

17. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 A number of issues (will) have a regulatory impact at EU level, probably before 2015 17 / 20  VAT (Directive revision ?, 2003)  Data protection (Directive revision?, 2009)  E-Invoicing (Expert Group, 2009)  Aging (EU Communications & report, 2009)  Equal Opportunities (2007)  Stricter financial prudential control (Package, 2009)  Mobility (Green Paper, 2007)  Environmental Measures Ecolabel (Directive revision proposal, 2008) Energy Efficient Buildings Directive (vote 2009?) Clean & Energy Efficient Vehicles Directive (Implementation by 2010 EU Energy & Climate package (impl. by 2010) Postal FMO (implementation by 2011 and 2013) Responding to European Postal Regulation

18. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 2. International Affairs  UPU & other Restricted (Regional) Unions UPU Strategy & Reform Letter Post Regulation Parcel Post Regulation Financial Services Regulation  ‘Wider Europe’ (Non-EU members)  Customs Issues 18 / 20 Responding to European Postal Regulation

19. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Summary: influencing the EU regulatory environment 19 / 20 Influencing easiness Priorities / Urgency European Parliament European Commission  Green Paper  White Paper  Directive National transposition Discussions Council

20. Main Color Palette CMYK 95/76/2/0 RGB 0/75/151 CMYK 0/0/0/100 RGB 0/0/0 CMYK 0/0/0/60 RGB 135/136/138 Secondary Color Palette CMYK 100/5/5/10 RGB 0/142/198 CMYK 30/8/100/15 RGB 177/177/0 CMYK 52/92/0/0 RGB 144/48/134 CMYK 0/60/96/0 RGB 238/128/20 CMYK 0/90/100/2 RGB 225/52/33 Association of European Public Postal Operators AISBL Association des Opérateurs Postaux Publics Européens AISBL www.posteurop.org