Inpost S.A.

Annual Report (ESEF) • Mar 28, 2025

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Luxembourg B 248669 Luxembourg, 27 March, 2025 of InPost S.A. and its subsidiaries for the period of 12 months ended 31 December, 2024 187 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / RESPONSIBILITY STATEMENT Responsibility statement InPost S.A. 70, route d’Esch L-1470 Luxembourg Grand Duchy of Luxembourg R.C.S. Luxembourg: B248669 These Consolidated Financial Statements of InPost Group for the period of 12 months ended on 31 December, 2024 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. The Management Board and Supervisory Board confirm that, to the best of their knowledge: Hein Pretorius Chairperson of the Supervisory Board Approved by the Board on its behalf by: Rafał Brzoska Chief Executive Officer 188 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / AUDIT REPORT Report on the audit of the consolidated financial statements Audit report To the Shareholders of InPost S.A. 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 2024, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards 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, 2024; • the consolidated statement of profit or loss and other comprehensive income for the year then ended; • the consolidated statement of cash flows 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, including material accounting policy information and other explanatory information. 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 40 to the consolidated financial statements. 189 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / AUDIT REPORT 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 matters 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 9 of the consolidated financial statements. How our audit addressed the key audit matter 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 sample basis, 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 non- standard journal entries of revenue accounts that have impacted revenue for the year by understanding the rationale for these journals. Key audit matter Accounting for business combination - acquisition of Menzies Distribution Limited As described in Note 6.4 and 18.2 to the consolidated financial statements, on 15 October 2024 the Group exercised the call option acquiring the remaining 70% of shares and increasing its shareholdings in Menzies Distribution Limited to 100%. The purchase price for the remaining 70% of shares was PLN 308.8 million (GBP 60.3 million) and was paid mainly in cash. The business combination achieved in stages was accounted for according to IFRS 3 Business combinations. The provisional fair value of net identifiable assets of Menzies Distribution Limited amounts to PLN 218.4 million, including PLN 315.4 million relating to customer relationships. Pre- existing 30% equity interest in Menzies Distribution Limited was remeasured to its fair value as at the acquisition date, which resulted in recognition of gain on revaluation of previously held interest in the amount of PLN 6.5 million. As a result of the provisional accounting for a business combination the How our audit addressed the key audit matter Our testing procedures included in particular: • receipt and analysis of the documentation supporting the accounting treatment applied by the management for the business combination; • evaluation of management’s assessment that the acquisition of Menzies Distribution Limited should be accounted for as a business combination achieved in stages in accordance with IFRS 3; • assessment of the Group’s analysis of the date of obtaining control; • assessment of the appropriateness of the identification of identifiable assets acquired and liabilities assumed at the acquisition date by reviewing the supporting documentation provided by the Management; • verification of management’s procedure for determining the fair value of the identifiable asset and liabilities; in particular, we assessed whether the valuation techniques and key assumptions (i.e. discount rates) used by the management are appropriate and reasonable. We also assessed how Group recognised a goodwill at provisional amount of PLN 162.8 million. This is a significant focus area for our audit due to the significance of management’s judgements and estimates involved in accounting for this business combination achieved in stages. The key judgements and estimates related to: - Measurement using equity method of the carrying amount of the investment in associate that was: (i) derecognised due to obtaining control and (ii) retained considering the demerger of Menzies Distribution Group Limited into Menzies Distribution Solutions Ltd and Menzies Distribution Limited, - Measurement of identifiable assets and liabilities of Menzies Distribution Limited at fair values, - Measurement of the consideration, including fair value of previously held interest, impact of the settlement of pre-existing relationship between acquirer and acquiree, and impact of the pre- existing call option on 70% interest in acquiree. management has addressed the estimation of uncertainty in making the accounting estimate; • evaluation of the method used to allocate the net assets and the goodwill relating to the Menzies Distribution Group Limited due to demerger into the two companies: Menzies Distribution Solutions Ltd and Menzies Distribution Limited; • evaluation of the method used to remeasure the previously held interest; • evaluation of the competency and objectivity of the external expert engaged by the management to determine the fair value of the identifiable assets acquired and liabilities assumed; we also involved our internal valuation experts to support us in our audit work; •evaluation of the adequacy and completeness of the disclosures. 190 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / AUDIT REPORT 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 IFRS Accounting Standards 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 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. 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; • plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities and business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes 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. 191 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / AUDIT REPORT 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 General Meeting of the Shareholders on 16 May, 2024 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 4 years. We have checked the compliance of the consolidated financial statements of the Group as at 31 December, 2024 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, 2024 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, 27 March, 2025 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. 192 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / TABLE OF CONTENTS CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 194 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 195 CONSOLIDATED STATEMENT OF CASH FLOWS 196 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 197 DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 198 1. Basis of preparation 198 2. Introduction to the consolidated financial statements 198 2.1. General information about InPost Group and its Parent 198 2.2. Group’s operations 198 2.3. Composition of the Group and interest in other entities 199 2.4. Authorisation of the consolidated financial statements 199 3. New and amended standards and interpretations 200 4. Foreign currency 201 4.1. Foreign operations treatment 201 4.2. Reporting foreign currency transactions 201 5. Basis for consolidation and accounting for the investment in the associates 201 6. Important events within the 2024 period 202 6.1. Changes in the Management Board of InPost S.A. 202 6.2. Dissolution of Giverty Limited and Granatana Limited 202 6.3. Changes in Supervisory Board of InPost S.A. 202 6.4. Reorganisation and acquisition of the remaining shares in Menzies Distribution Group 202 7. Significant accounting judgements and estimates 202 DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 203 8. Group’s performance and segment information 203 8.1. Alternative performance measures: Gross Profit, Operating EBITDA, Adjusted EBITDA 203 8.2. Segment information 206 9. Revenue 210 10. Depreciation and amortisation 211 11. External services 211 12. Employee benefit costs 212 13. Other expenses 212 14. Financial income and expenses 212 15. Income tax 212 15.1. Income tax in profit or loss 213 15.2. Reconciliation of effective tax rate 213 15.3. Change in deferred tax assets and liabilities 214 15.4. Unrecognised deferred tax assets 215 16. Earnings per share (EPS) 215 17. Dividends paid and proposed for payment 215 193 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / TABLE OF CONTENTS DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 216 18. Goodwill 216 18.1. Impairment testing 216 18.2. Acquisition of Menzies Distribution Group 218 19. Investment in an associate 219 20. Other financial assets 222 21. Intangible assets 223 22. Property, plant, and equipment 226 23. Leases 229 23.1. Right-of-use assets 231 23.2. Leasing liabilities 232 24. Other assets 232 25. Trade and other receivables 233 25.1. Other receivables 234 26. Cash and cash equivalents 235 27. Loans and borrowings 236 27.1. Assets pledged as security for liabilities 237 28. Reconciliation of movements of liabilities to cash flows arising from financing activities 238 29. Employee benefits and other provisions 239 30. Share-based payment 241 30.1. Earn-out agreement 241 30.2. Management Incentive Plan 242 30.3. Long-Term Incentive Plan 243 30.4. Performance bonuses 244 30.5. Restricted Stock Units 245 31. Other liabilities 245 32. Trade and other payables 245 33. Financial instruments 246 33.1. The fair value of financial instruments 246 33.2. Financial instruments by category 247 33.3. Guarantees and other securities 247 34. Contingent assets and liabilities 247 35. Explanations to the Statement of cash flows 248 GROUP’S CAPITAL AND RISKS 249 36. Share capital 249 37. Capital management 249 37.1. Financial risk management objectives 250 38. Related-party transactions 253 38.1. Key personnel remuneration 253 39. Employment structure 254 40. Auditors’ remuneration 254 41. Events after the balance sheet date 255 41.1. Change in debt refinancing 255 41.2. Convertible loans 255 194 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Consolidated statement of profit or loss and other comprehensive income Period of 12 Period of 12 Period of 12 Period of 12 months ended months ended months ended months ended Note 31-12-2024 31-12-2023 Note 31-12-2024 31-12-2023 Continued operations Other comprehensive income – item that may Revenue 9 10 ,919. 8 8, 843. 7 be reclassified to profit or loss Other operating income 25.4 1 9.0 Exchange differences from the translation of (6 .3) 138.4 Depreciation and amortisation 10 1 ,490.2 1 , 149. 1 foreign operations, net of tax Raw materials and consumables 248 .5 237 .8 Share of other comprehensive income/(loss) of 12. 1 (7 .5) External services 11 5, 560.9 4, 752.2 Associates, accounted for using the equity method Taxes and charges 15. 6 11 .5 Other comprehensive income, net of tax 5.8 130. 9 Total comprehensive income attributable 1 ,253. 1 7 78.3 Payroll 12 1 , 167 .5 821.5 to the owners of the parent 2 Social security and other benefits 12 289. 9 224 .8 Net profit (loss) attributable to owners of the parent company: Other expenses 13 115.2 102.0 From continued operations: 1 ,247 .2 647 .4 Cost of goods and materials sold 10.4 36. 6 From discontinued operations: 0 .1 - Other operating expenses 68. 3 18. 8 Total comprehensive income attributable to owners Impairment (gain)/loss on trade and other receivables 25 18. 7 9.6 of the parent company: Total operating expenses 8, 985.2 7 , 363.9 From continued operations 1 ,253. 1 7 7 8.2 Operating profit 1 ,960 .0 1 ,498.8 From discontinued operations - 0 .1 Finance income 14 43. 8 12.5 Basic earnings per share (in PLN) 16 2.50 1.3 0 Finance costs 14 386 .2 548.4 Basic earnings per share (in PLN) – continuing operations 16 2.50 1. 3 0 Share of results from associates, accounted for using 19 8.7 (30. 9) Basic earnings per share (in PLN) – discontinued operations 16 - - the equity method Diluted earnings per share (in PLN) 16 2.48 1.29 Gain on revaluation of previously owned shares 18.2 6.5 - in acquired entities Diluted earnings per share (in PLN) – continuing operations 16 2.48 1 .29 Profit before tax 1 ,632. 8 932.0 Diluted earnings per share (in PLN) – discontinued operations 16 - - Income tax expense 15 385. 6 28 4.6 Profit from continuing operations 1,247 .2 647 .4 Profit (loss) from discontinued operations 1 0 .1 - Net profit 1,247 .3 647 .4 The above consolidated financial statements should be read in conjunction with the accompanying notes. 1 Profit (loss) from discontinued operations related to liquidation of Giverty Holding Limited and Granatana Limited 2 The Net profit for the period and Total comprehensive income are attributable to the owners of the parent company only 195 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / CONSOLIDATED STATEMENT OF FINANCIAL POSITION Consolidated statement of financial position Balance as at Balance as at Balance as at Balance as at ASSETS Note 31-12-2024 31-12-2023 EQUITY AND LIABILITIES Note 31-12-2024 31-12-2023 Goodwill 18 1 ,519 .7 1 ,379 .9 Share capital 36 22.7 22.7 Intangible assets 21 1 ,413. 6 1, 002. 1 Share premium 35, 122.4 35, 122.4 Property, plant, and equipment 22 6 ,538.9 4 ,802.2 Retained earnings/(accumulated losses) 2,798 .3 1,54 1.4 Investments in associates, accounted for 19 94.2 211 .5 Reserves (35,487 .4) (35, 392.5) using the equity method Total equity (attributable to owners) 2,456 .0 1 ,294. 0 Other receivables 44. 1 26 .6 Loans and borrowings 27 4,73 9. 9 4, 769 .2 Other financial assets 33.2 128. 7 - Employee benefits and other provisions 29 11 .9 1 4.0 Deferred tax assets 15.3 191 . 1 175 . 1 Government grants 1.0 1 .1 Other assets 24 47 .7 43. 3 Deferred tax liability 15.3 403.2 297 .4 Non-current assets 9,97 8.0 7 , 640. 7 Other financial liabilities 23.2 1, 720. 6 1 , 127 .4 Inventory 12.0 13. 0 Total non-current liabilities 6,8 76.6 6,209 . 1 Other financial assets 20 76 .4 7. 9 Trade payables and other payables 32 1 ,671 .9 1,074.7 Trade and other receivables 25 1 ,955. 7 1,439 .9 Loans and borrowings 27 320 .9 87 .6 Income tax asset 5.3 14. 5 Current tax liabilities 210. 1 12 4. 7 Other assets 24 93. 1 51 .6 Employee benefits and other provisions 29 166 .8 128. 6 Cash and cash equivalents 26 7 72.3 565.2 Other financial liabilities 23.2 9 74 . 8 664 .2 Current assets 2,914. 8 2, 092. 1 Other liabilities 31 215. 7 149. 9 TOTAL ASSETS 12, 892.8 9, 732. 8 Total current liabilities 3,560 .2 2,229. 7 TOTAL EQUITY AND LIABILITIES 12, 892.8 9, 732. 8 The above consolidated financial statements should be read in conjunction with the accompanying notes. 196 Note InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / CONSOLIDATED STATEMENT OF CASH FLOWS Consolidated statement of cash flows Period of 12 months Period of 12 months Period of 12 months Period of 12 months Note ended 31-12-2024 ended 31-12-2023 ended 31-12-2024 ended 31-12-2023 Cash flows from operating activities Cash flows from investing activities Net profit 1 ,247 .3 647 .4 Purchase of property, plant, and equipment (1 , 173. 8) (881.4) Adjustments: 2,355 .4 2, 028.4 Purchase of intangible assets (226 .0) (138.2) Income tax expense 15 385. 6 284. 6 Acquisition of shares in associated company 19 - (255.2) Financial cost/(income) 35 345 .7 50 7 .4 Proceeds from financial instruments 21 .2 - (Gain)/loss on sale of property, plant, and equipment 2.5 0 .1 Acquisition of a subsidiary, net of cash acquired 18.2 (225.5) - Depreciation and amortisation 10 1,490 .2 1 , 149. 1 Loans granted 20 (127 .6) - Impairment losses 41.7 9.6 Net cash from investing activities (1 , 731 .7) (1 ,27 4.8) Share-based payments 30 104.9 46.7 Cash flows from financing activities Gain on revaluation of previously owned shares (6 .5) - Proceeds from loans and borrowings 28 163. 1 - in acquired entities Repayment of the principal portion of loans 28 (9.6) (24. 3) Share of results of associates 19 (8. 7) 30 .9 and borrowings Changes in working capital: (14 .3) (43 .9) Payment of principal portion of the lease liability 28 (97 6. 3) (657 . 1) Trade and other receivables 35 (123 .3) (206 .8) Acquisition of treasury shares (196 .0) - Inventories 0.9 1.4 Net cash from financing activities (1 ,018 .8) (681 .4) Other assets 35 (45 .3) (8.5) Net increase/(decrease) in cash and cash equivalents 206 .6 11 9.6 Trade payables and other payables 35 60.6 124. 3 Cash and cash equivalents as at 1 January 565.2 435. 8 Employee benefits, provisions, and contract liabilities 35 27 .2 32.4 Effect of movements in exchange rates on cash held 0.5 9.8 Other liabilities 35 65 .6 13. 3 Cash and cash equivalents as at 31 December 772.3 565.2 Cash generated from operating activities 3,588 .4 2,631 .9 Interest and commissions paid (353. 5) (365. 3) Income tax paid (277 .8) (190.8) Net cash from operating activities 2,957 . 1 2 ,07 5.8 The above consolidated financial statements should be read in conjunction with the accompanying notes. 197 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Reserves Share capital Share premium Translation reserve 3 Treasury shares Reserve capital Other reserves 5 Retained earnings/ Total equity (reorganisation) 4 (accumulated losses) (attributable to owners) Balance as at 01-01-2023 22.7 35, 122.4 (29 .2) (8. 7) (35, 656 .3) 126 . 1 892.0 4 6 9.0 Net profit - - - - - - 647 .4 647 .4 Other comprehensive income – exchange - - 138.4 - - - - 138.4 differences from translation of subsidiaries Share in other comprehensive income/(loss) - - (7 .5) - - - - (7 .5) of associates Total comprehensive income for the period - - 130.9 - - - 647 .4 7 7 8.3 Share-based payment (equity-settled) - - - - - 4 6.7 - 4 6.7 Acquisition of treasury shares - - - - - - - - Treasury shares delivered - - - 4.2 - (6 .2) 2.0 - Balance as at 31-12-2023 22.7 35, 122.4 101. 7 (4.5) (35 , 656. 3) 16 6.6 1 ,541 .4 1 ,294. 0 Net profit - - - - - - 1,247 .3 1 ,247 . 3 Other comprehensive income – exchange - - (6 .3) - - - - (6. 3) differences from translation of subsidiaries Share in other comprehensive income/(loss) - - 12. 1 - - - - 12. 1 of associates Total comprehensive income for the period - - 5.8 - - - 1,247 .3 1 ,253. 1 Share-based payment (equity-settled) - - - - - 104.9 - 104 .9 Acquisition of treasury shares - - - (196. 0) - - - (196 .0) Treasury shares delivered - - - 35. 1 - (44.7) 9.6 - Balance as at 31-12-2024 22.7 35, 122.4 107 .5 (165.4) (35 ,656 .3) 226. 8 2,798 .3 2,456. 0 Consolidated statement of changes in equity 3 Translation reserve includes exchange differences from the translation of foreign operations. 4 The Group reorganisation, which took place at the beginning of 2021, impacted the current Group’s structure significantly. On 26 January, 2021, the general meeting of shareholders adopted a resolution to increase the share capital to EUR 5,000,000. 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 to cover the value of shares issued. 5 Other reserves include equity-settled share-based payment programme reserve. The above consolidated financial statements should be read in conjunction with the accompanying notes. 198 Company name Interest in the share capital PPF Group N.V. 28.75% A&R Investments LTD 12.49% Advent International Corporation 10.98% GIC Private Limited 5.05% Others 42.73% Total 100.00% 2. Introduction to the consolidated financial statements InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of preparation The accompanying consolidated statements of the financial position as of 31 December, 2024, as well as the related consolidated statements of profit and loss and other comprehensive income, changes in equity and cash flows for the financial year ended 31 December, 2024, with the related notes (collectively, the “consolidated financial statements”), have been prepared in accordance with International Financial Reporting Standards and IFRS IC interpretations as adopted by the European Union (hereinafter referred to as “IFRS”). The Management Board of InPost S.A. declares that, according to its best judgement, these consolidated financial statements have been prepared in accordance with the accounting principles currently in force, and give a true and fair view of the consolidated financial position of InPost Group as at 31 December, 2024 and of its consolidated financial performance and consolidated cash flows for the year then ended. 2.1. General information about InPost Group and its Parent InPost S.A. (hereinafter “the Company”) was incorporated on 6 November, 2020; it 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. The address of InPost S.A. registered office is 70 route d’Esch, L-1470 Luxembourg. InPost S.A. is the Parent Company of InPost Group (hereinafter “the Group”). The functional currency of InPost S.A. is the euro (EUR). The Polish zloty (PLN) is used as the presentation currency of these consolidated financial statements. Since 27 January, 2021, InPost S.A. shares have been traded on Euronext Amsterdam, where the Company has a credit rating of Ba2/BB. Material accounting policy information is described in respective notes to the consolidated financial statements, and significant judgements and estimates are summarised in Note 7. The consolidated financial statements have been prepared on a historical cost basis, unless stated otherwise. These consolidated financial statements were prepared under the assumption that InPost Group will continue to operate as a going concern in the foreseeable future. As of the date of 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. As of the date of this report, the Company had no ultimate controlling shareholder. As of the date of these consolidated financial statements, the shareholders were: 2.2. Group’s operations InPost Group offers complex logistic solutions, mostly for customers, in the e-commerce industry. The core business of InPost Group includes the following operating activities: delivery of parcels, fulfilment services, research and development works, internet portals, mobile apps applications, data processing, website management (hosting), and holding activities, including the management of InPost Group. Disclosures to consolidated financial statements 199 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 2.3. Composition of the Group and interest in other entities These consolidated financial statements of InPost Group include the financial information of the Parent, which is InPost S.A., and of three direct subsidiaries and nineteen indirectly controlled subsidiaries of InPost S.A. Moreover, since 2023, the Group holds one associate, accounted for using the equity method. The list of the Group’s subsidiaries and associates is presented in the table below. Company name Country Functional currency Shareholders as at 31-12-2024 Interest in the share capital as at 31-12-2024 Interest in the share capital as at 31-12-2023 Direct subsidiaries 1 Integer.pl S.A. Poland PLN InPost S.A. 100% 100% 2 InPost Technology S.à r.l. Luxembourg EUR InPost S.A. 100% 100% 3 Integer France SAS France EUR InPost S.A. 100% 100% Indirect subsidiaries 4 Mondial Relay SAS France EUR Integer France SAS 100% 100% 5 InPost Sp. z o.o. Poland PLN Integer Group Services Sp. z o.o. 100% 100% 6 Locker InPost Italia Srl Italy EUR InPost Paczkomaty Sp. z o.o. 100% 100% 7 Granatana Limited Cyprus EUR InPost Paczkomaty Sp. z o.o. 0% 100% 8 Giverty Holding Limited Cyprus EUR InPost Paczkomaty Sp. z o.o. 0% 100% 9 InPost UK Limited United Kingdom GBP InPost Paczkomaty Sp. z o.o. 100% 100% 10 InPost Paczkomaty Sp. z o.o. Poland PLN Integer.pl S.A. 100% 100% 11 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% 12 M.P.S.L. Modern Postal Services Ltd, in liquidation Cyprus EUR Integer.pl S.A. 100% 100% 13 M HOLDCO 1 Limited United Kingdom GBP InPost UK Limited 100% Not applicable 14 Menzies Distribution Group Limited United Kingdom GBP M HOLDCO 1 Limited 100% 30% 15 Menzies Distribution Holdings Limited United Kingdom GBP Menzies Distribution Group Limited 100% 30% 16 Menzies Distribution Limited United Kingdom GBP Menzies Distribution Holdings Limited 100% 30% 17 EM NEWS DISTRIBUTION (IRELAND) Limited Ireland EUR Menzies Distribution Limited 100% 30% 18 EM NEWS DISTRIBUTION (NI) Limited United Kingdom GBP Menzies Distribution Limited 100% 30% 19 Menzies Parcel Limited United Kingdom GBP Menzies Distribution Limited 100% 30% 20 Menzies Response Limited United Kingdom GBP Menzies Distribution Limited 100% 30% 21 Jones, Yarrell & CO Limited United Kingdom GBP Menzies Distribution Limited 100% 30% 22 TAKE ONE MEDIA Limited United Kingdom GBP Menzies Response Limited 100% 30% Associates 23 Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) United Kingdom GBP InPost UK Limited 30% Not applicable On 19 July, 2023, InPost Group acquired 30% of voting rights in Menzies Distribution Group. On 14 October, 2024, Menzies Distribution Group was reorganised and divided into M HOLDCO 1 Limited and Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited). On 15 October, 2024, InPost Group acquired the remaining 70% through M HOLDCO 1 Limited and remained with 30% shares in Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited). More details in Note 6.4. On 24 February, 2024, Giverty Holding Limited was liquidated and removed from the register of entrepreneurs. More details in Note 6.2. On 10 September, 2024, Granatana Limited was liquidated and removed from the register of entrepreneurs. More details in Note 6.2. 2.4. Authorisation of the consolidated financial statements These consolidated financial statements were authorised for issue by the Management Board on 27 March, 2025. 200 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 3. New and amended standards and interpretations Certain amendments to accounting standards (disclosed below) have been published; these are not mandatory for the 31 December, 2024 reporting period and have not been early adopted by the Group. New standard or amendment Issued on Effective for annual periods beginning on or after Effective date in EU Group’s assessment of the impact on financial statements IFRS 19 Subsidiaries without Public Accountability: Disclosures 09-05-2024 01-01-2027 not yet endorsed not applicable for the Group IFRS 18 Presentation and Disclosure in Financial Statements 09-04-2024 01-01-2027 not yet endorsed assessment in progress Annual Improvements Volume 11 18-07-2024 01-01-2026 not yet endorsed assessment in progress Amendments to the Classification and Measurement of Financial Instruments (IFRS 9 and IFRS 7) 30-05-2024 01-01-2026 not yet endorsed assessment in progress Amendments to IAS 21: Lack of Exchangeability 15-08-2023 01-01-2025 01-01-2025 no impact Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture 11-09-2014 deferred indefinitely by IASB postponed no impact Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 18-12-2024 01-01-2026 not yet endorsed assessment in progress New standard or amendment Issued on Effective for annual periods beginning on or after Effective date in EU Group’s assessment of the regulation Amendments to IAS 7: Supplier Finance Arrangements 25-05-2023 01-01-2024 01-01-2024 no impact (not applicable to the Group) Amendments to IAS 1: • Classification of Liabilities as Current or Non-current – Date; • Classification of Liabilities as Current or Non-current – Deferral of Effective Date; • Non-current Liabilities with Covenants 23-01-2020 15-07-2020 31-10-2022 01-01-2024 01-01-2024 insignificant impact (reflected in the note 27) Amendments to IFRS 16: Lease Liability in a Sale and Leaseback 22-09-2022 01-01-2024 01-01-2024 no impact IFRIC agenda decision: Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8 Operating Segments) July 2024 01-01-2024 01-01-2024 insignificant impact (reflected in the note 8) The Group applied the following standards and interpretations that have come into force for the financial periods starting from 1 January, 2024: 201 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Foreign currency 5. Basis for consolidation and accounting for the investment in the associates 4.1. Foreign operations treatment The Polish zloty (PLN) has been used as the presentation currency for these consolidated financial statements. The functional currency of each company is the same as the currency of its country of residence. Exchange differences from the translation of foreign operations, as well as InPost S.A. operations from functional currency to the Group’s presentation currency, are recognised in other comprehensive income as a translation reserve, except to the extent that the translation difference is attributable to Non-Controlling Interest (NCI) . 4.2. Reporting foreign currency transactions For entities whose functional currency is PLN, the closing rate is the average exchange rate published for the currency by the National Bank of Poland (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 described in Note 4.1. 31-12-2024 31-12-2023 Exchange rate at the reporting date – for assets and liabilities EUR 4.2730 4.3480 GBP 5.1488 4.9997 Average exchange rate for the period – for P&L and cash flows EUR 4.3042 4.5284 GBP 5.0960 5.2080 Subsidiaries are entities controlled by the Group. InPost 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 InPost Group’s 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. Associates are all entities over which the Parent Company, directly or through its subsidiaries, exercises significant influence, but does not exercise control, which usually accompanies the holding of 20% to 50% of the total number of votes in decision- making bodies. Investments in associates are accounted for using the equity method. A business combination achieved in stages (i.e. when an associate become a subsidiary) is accounted for using the acquisition method at the acquisition date as described above. The previously held interest is remeasured to fair value at the acquisition date, and a gain or loss is recognised in profit or loss. The detailed information about the investment in associates and business acquired in the reporting period is presented in Note 19 on significant judgements below. The following exchange rates were used at the reporting dates: 202 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED FINANCIAL STATEMENTS 6. Important events within the 2024 period 6.1. Changes in the Management Board of InPost S.A. On 15 January, 2024, InPost S.A. announced that Adam Aleksandrowicz had decided to step down from his role as Group Chief Financial Officer. Supervisory Board appointed Francisco Javier van Engelen Sousa as Group Chief Financial Officer; the change in the InPost S.A. Management Board has been effective since 2 April, 2024. 6.2. Dissolution of Giverty Limited and Granatana Limited On 24 February, 2024, the Group received confirmation that Giverty Limited had been successfully liquidated, and the Group lost control of this subsidiary. On 10 September, 2024, the Group received confirmation of the successful liquidation of the second Cypriot company, namely Granatana Limited, and the Group lost control of this subsidiary. 6.3. Changes in Supervisory Board of InPost S.A. On 1 July, 2024, the Supervisory Board of InPost S.A. announced that Mark Robertshaw had decided to step down from Company’s Supervisory Board, effective 1 July, 2024. The Supervisory Board nominated Hein Pretorius as Chairman of the Supervisory Board . 6.4. Reorganisation and acquisition of the remaining shares in Menzies Distribution Group On 14 October, 2024, Menzies Distribution Group Limited (MDG) was restructured to separate and demerge its two main trading operations into the companies: Menzies Distribution Solutions Ltd and Menzies Distri- bution Limited. Menzies Distribution Solutions Limited (MDS) provides full load transport and warehouse services across Great Britain using its high cube vehicle fleet. Menzies Distribution Limited (MDL) is a regional new- spaper and magazine wholesaler that also provides final mile courier services to InPost UK Ltd, supporting its out-of-home delivery proposition across Great Britain. Following the demerger, MDL and its rela- ted companies were wholly owned by M HOLDCO 1 Limited; and MDS and its related companies were wholly owned by Menzies Distribution Solutions Group Limited (befo- re: M HOLDCO 2 Limited). The shareholder structure of both M HOLDCO 1 Limited and Menzies Distribution Solutions Group Limi- ted (before: M HOLDCO 2 Limited) exactly mirrors the original shareholder structure of MDG immediately prior to the demerger. The- refore, immediately following the demerger there was no change to the ultimate con- trolling party of both businesses as well as InPost Group retained 30% of shareholdings in both businesses. On 15 October, 2024, InPost Group acquired the remaining 70% of shares in Menzies Distribution Limited (described above as MDL). This means that InPost Group now fully owns Menzies Distribution Limited (100% control of Express and Newstrade operations) and exercises the control. The third segment, MDS (Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited), responsible mainly for full load transport and warehousing was demerged from Menzies and is not part of the transac- tion. It will continue to be run by its existing management team, and InPost will retain a 30% shareholding in MDS. The purchase price for the remaining 70% of shares was GBP 60.4 million, and the entire amount was paid in cash. This move marks a significant step towards becoming the UK’s leading out- -of-home delivery company. Combining the capabilities of both organisations will improve the satisfaction of InPost Group partners and customers, and will shape the e-commerce delivery market in the UK. For detailed infor- mation about the impact of this transaction on these consolidated financial statements please refer to Note 19. 7. Significant accounting judgements and estimates Accounting policies information considered material is provided per note to the consolidated financial statements. It also requires the Management to exercise its judgement in applying the Group’s accounting policies. These policies and the significant judgements made by the Management in applying the Group’s accounting policies have been consistently applied to all periods presented in these consolidated financial statements. The preparation of the consolidated financial statements, in accordance with IFRS, adopted by the EU, also requires the use of certain critical accounting estimates. The summary of used judgements and estimates with references to respective notes is presented in the table below: Note Title Significant estimates Significant judgements 15.3 Deferred tax assets Recognition of deferred tax assets 18 Goodwill Discount rates, Growth rates, Impairment, Fair value adjustments 19 Interests in other entities Fair value adjustments Significant influence 21 Intangible assets Amortisation, Impairment 22 Property, plant, and equipment Depreciation, Expected useful life, Impairment 23 Leases Lease term, Discount rate, Purchase option Lease definition 25 Trade and other receivables Impairment 29 Provisions and employee benefits Estimation of employee benefits 30 Share-based payment Exit date, Target EBITDA, Estimated outcome of the programme (service and non-market performance conditions) 203 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Disclosures to consolidated statement of profit or loss and other comprehensive income 8. Group’s performance and segment information The Group reports on the following alternative performance measures of the Group’s performance: Gross Profit, Operating EBITDA, and Adjusted EBITDA. The Group believes that these, and similar measures, are used in the industry in which the Group operates as a means of evaluating a Group’s operating performance. However, these are not recognised measures of financial performance, financial condition, or liquidity under IFRS. In addition, not all companies may calculate Gross Profit, Operating EBITDA, and Adjusted 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, and takes into account only revenue and other operating income related to deliveries, and costs directly attributable to such deliveries. Gross Profit is defined as net profit 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 results 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 8.2 on segment reporting. 8.1. Alternative performance measures: Gross Profit, Operating EBITDA, Adjusted EBITDA Operating EBITDA facilitates the comparison 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 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 result of equity- accounted investees, finance costs and income, as well as depreciation and amortisation. 204 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Net profit from continuing operations 1,247.2 647.4 Income tax 385.6 284.6 Profit from continuing operations before tax 1,632.8 932.0 adjusted by: - Net financial costs 342.4 535.9 - Depreciation 1,490.2 1,149.1 - Share of result from associates (8.7) 30.9 - Gain on revaluation of previously owned shares in acquired entities (6.5) - Operating EBITDA 3,450.2 2,647.9 - Incentive programmes set up by Shareholder 15.1 4.5 - Incentive programmes set up by Group 76.4 34.4 - M&A costs 35.0 12.0 - Restructuring costs 71.7 34.3 Adjusted EBITDA 3,648.4 2,733.1 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Adjusted EBIT is defined as the operating profit for the period, adjusted for one off/ non cash costs described in Adjusted EBITDA definition and adjusted by amortisation of customer relationship and trademarks acquired during M&A process. In Management opinion elimination of amortisation of intangibles identified during purchase price allocation allows to eliminate the costs of assets which cannot be recreated at any point in the future of the group. Adjusted Profit before tax is defined as the profit before tax, adjusted for non-cash and one-off costs described in Adjusted EBITDA paragraph, amortisation of trademarks and customer relationships acquired during M&A process, it also includes adjustments for exchange rate differences related to debt denominated in PLN valuated in EUR on InPost S.A. level. Adjusted Net Profit is defined as the net profit or loss for the period, adjusted for non-cash and one-off costs described in Adjusted EBITDA paragraph, amortisation of trademarks and customer relationships acquired during M&A process, it also includes adjustments for exchange rate differences related to debt denominated in PLN valuated in EUR on InPost S.A. level and the tax effects of these adjustments. CAPEX is defined as the total of Purchase of property, plant, and equipment and Purchase of intangible assets, presented in the Statement of cash flows. This measure is used to assess the total amount of cash outflows invested in the Group’s non- current assets. Adjusted EBITDA facilitates the comparison 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 and one-off and non-cash costs not related to its day- to-day operations. Adjusted 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 result of equity- accounted investees, gain/(loss) on revaluation of previously owned shares in acquired entities, finance costs and income, depreciation and amortisation, adjusted with non-cash (share-based payments), and one-off costs (mainly Restructuring and Acquisition costs). Restructuring costs refer to the legal and advisory costs of the standardisation of operating, administration, and business processes of acquired companies to align them with group standards. Acquisition costs refer to the legal and advisory costs connected with potential and actual acquisition projects. Operating EBITDA Margin is defined as Operating EBITDA divided by the total of Revenue and Other operating income. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by the total of Revenue and Other operating income. The above-mentioned measures are used to evaluate the profitability of each reportable segment. The following table reconciles net profit to Operating EBITDA and Adjusted EBITDA for the periods indicated: 205 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Purchase of property, plant, and equipment 1,173.8 881.4 Purchase of intangible assets 226.0 138.2 Total CAPEX 1,399.8 1,019.6 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Revenue and other operating income 10,945.2 8,862.7 Operating EBITDA 3,450.2 2,647.9 Operating EBITDA margin 31.5% 29.9% Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Adjusted EBITDA 3,648.4 2,733.1 Depreciation and amortisation (1,490.2) (1,149.1) Elimination of amortisation of trademarks and customer relationship acquired through subsidiary acquisition 91.5 85.0 Adjusted EBIT 2,249.7 1,669.0 Net financial costs (342.4) (535.9) Adjustment on the FX on revaluation 30.8 223.3 Share of results from associates, accounted for using the equity method 8.7 (30.9) Adjusted Profit before tax 1,946.8 1,325.5 Income tax (385.6) (284.6) Tax effect of the above adjustments (39.4) (30.8) Adjusted Net Profit 1,521.8 1,010.1 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME The following table reconciles Adjusted Net Profit for the periods indicated: The following table reconciles CAPEX for the periods indicated: The following table reconciles Operating EBITDA margin for the periods indicated: Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Revenue and other operating income 10,945.2 8,862.7 Adjusted EBITDA 3,648.4 2,733.1 Adjusted EBITDA margin 33.3% 30.8% The following table reconciles Adjusted EBITDA margin for the periods indicated: 206 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Poland 6,447.5 5,334.5 France 2,429.1 2,199.9 United Kingdom 1,128.7 437.5 Spain 348.5 322.7 Italy 285.2 200.1 Other European countries 280.8 349.0 Total 10,919.8 8,843.7 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 8.2. Segment information For management purposes, the Group presents results in four reportable segments, divided into the following two geographical regions: • Segments outside Poland (International): A. Mondial Relay segment, which includes APM 6 business and PUDO 7 points in France, Spain, Belgium, the Netherlands, Luxembourg, and Portugal; B. International Other segment, which includes APM, PUDO and courier business in the United Kingdom and Italy. • Segments in Poland: C. APM segment, which is focused on the delivery of parcels to automated parcel machines; D. To-Door segment, which includes the delivery of parcels using door-to-door couriers. Non-reportable segment: other segments in Poland, which consists mainly of fulfilment, Fresh, marketing, and IT services provided for external customers. 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. The accounting policies adopted are uniform for all segments and consistent with those applied for the Group. 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 are reflected in the Inter-segment eliminations column. 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. Current taxes, deferred taxes, and certain financial assets and all liabilities are not allocated to those segments, as they too are managed on a Group basis. 6 APM is Automated Parcel Machine 7 PUDO is Pick-Up and Drop-Off points Selected data regarding the profit and loss statement, broken down by reportable segments: Period of 12 months ended on 31-12-2024 International Poland Total Total reportable segments Mondial Relay Other APM To-Door Other Inter-segment elimination A B C D A+B+C+D Revenue 8 3,079.5 1,487.7 4,907.8 1,445.7 133.1 (134.0) 10,919.8 10,920.7 External 3,024.7 1,445.9 4,907.8 1,445.7 95.7 - 10,919.8 10,824.1 Inter-segment 54.8 41.8 - - 37.4 (134.0) - 96.6 Other operating income 0.1 0.8 - - 24.5 - 25.4 0.9 Direct costs (2,348.6) (1,052.4) (1,727.2) (963.5) (152.9) 134.0 (6,110.6) (6,091.7) Logistic costs, of which: (2,000.9) (934.2) (1,579.4) (958.6) - 96.6 (5,376.5) (5,473.1) Inter-segment costs (41.8) (54.8) - - - 96.6 - (96.6) APM network, of which: (26.5) (40.3) (97.7) - - 37.4 (127.1) (164.5) Inter-segment costs (11.9) (25.5) - - - 37.4 - (37.4) PUDO points 9 (281.5) (43.2) (22.0) (4.9) - - (351.6) (351.6) Other direct costs (39.7) (34.7) (28.1) - (152.9) - (255.4) (102.5) Gross profit 731.0 436.1 3,180.6 482.2 4.7 - 4,834.6 4,829.9 8 The Group’s revenue is recognised at the indicated point in time. 9 Commissions for handling parcels at collection and delivery points. The summary of revenues from external customers attributed to the entity's country of domicile and to foreign countries is presented in the table below: 207 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME The summary of gross profit or loss, operating EBITDA, and operating profit for the segments is presented in the table below: Mondial Relay Other International Poland Total Gross profit/(loss) 731.0 436.1 3,667.5 4,834.6 General costs, of which: (341.0) (297.5) (745.9) (1,384.4) - Sales & Marketing (71.3) (46.8) (138.5) (256.6) - Call Centre (40.2) (29.7) (64.5) (134.4) - IT Maintenance (64.1) (12.4) (111.3) (187.8) - Incentive programmes set up by Shareholder - - (15.1) (15.1) - Incentive programmes set up by Group (5.7) (13.8) (56.9) (76.4) - M&A costs - (35.0) - (35.0) - Restructuring costs (61.5) (10.2) - (71.7) - Other general costs (98.2) (149.6) (359.6) (607.4) Operating EBITDA 390.0 138.6 2,921.6 3,450.2 Depreciation and amortisation (441.9) (167.4) (880.9) (1,490.2) Operating profit (51.9) (28.8) 2,040.7 1,960.0 Mondial Relay Other International Poland Total Operating EBITDA 390.0 138.6 2,921.6 3,450.2 - Incentive programmes set up by Shareholder - - 15.1 15.1 - Incentive programmes set up by Group 5.7 13.8 56.9 76.4 - M&A costs - 35.0 - 35.0 - Restructuring costs 61.5 10.2 - 71.7 Adjusted EBITDA 457.2 197.6 2,993.6 3,648.4 The summary of value of Property, plant, and equipment and Intangible assets for the segments is presented in the table below: The summary of operating EBITDA and Adjusted EBITDA for the segments is presented in the table below: Mondial Relay Other International Poland Total Property, plant, and equipment 2,054.3 1,337.7 3,138.7 6,530.7 - of which ROU 940.0 456.1 1,183.3 2,579.4 Intangible assets 587.5 344.4 481.7 1,413.6 Goodwill 1,356.2 163.5 - 1,519.7 Total 3,998.0 1,845.6 3,620.4 9,464.0 208 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Selected data regarding the profit and loss statement broken down by operating segments: Period of 12 months ended on 31-12-2023 International Poland Total Total reportable segments Mondial Relay Other APM To-Door Other Inter-segment elimination A B C D A+B+C+D Revenue 10 2,929.4 672.9 4,064.4 1,141.1 145.2 (109.3) 8,843.7 8,807.8 External 2,871.7 637.5 4,064.4 1,141.1 129.0 - 8,843.7 8,714.7 Inter-segment 57.7 35.4 - - 16.2 (109.3) - 93.1 Other operating income - - - - 19.0 - 19.0 - Direct costs (2,373.9) (603.3) (1,449.7) (747.5) (134.8) 109.3 (5,199.9) (5,174.4) Logistic costs, of which: (1,941.0) (519.9) (1,316.2) (720.2) - 93.1 (4,404.2) (4,497.3) Inter-segment costs (35.3) (57.8) - - - 93.1 - (93.1) APM network, of which: (19.6) (26.7) (69.5) - - 16.2 (99.6) (115.8) Inter-segment costs (6.0) (10.2) - - - 16.2 - (16.2) PUDO points 11 (362.4) (30.3) (17.2) (4.1) - - (414.0) (414.0) Other direct costs (50.9) (26.4) (46.8) (23.2) (134.8) - (282.1) (147.3) Gross profit 555.5 69.6 2,614.7 393.6 29.4 - 3,662.8 3,633.4 10 The Group’s revenue is recognised at the indicated point in time. 11 PUDO points – commissions for handling parcels at collection and delivery points . 209 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME The summary of Gross profit or loss, Operating EBITDA, and Operating profit for the segments is presented in the table below: Mondial Relay Other International Poland Total Operating EBITDA 293.2 (88.8) 2,443.5 2,647.9 - Incentive programmes set up by Shareholder - - 4.5 4.5 - Incentive programmes set up by Group 1.4 6.3 26.7 34.4 - M&A costs - 12.0 - 12.0 - Restructuring costs 34.3 - - 34.3 Adjusted EBITDA 328.9 (70.5) 2,474.7 2,733.1 The summary of value of Property, plant, and equipment and Intangible assets for the segments, as at 31 December, 2023, is presented in the table below: The summary of Operating EBITDA and Adjusted EBITDA for the segments is presented in the table below: Mondial Relay Other International Poland Total Gross profit/(loss) 555.5 69.6 3,037.7 3,662.8 General costs, of which: (262.3) (158.4) (594.2) (1,014.9) - Sales & Marketing (61.2) (22.8) (109.8) (193.8) - Call Centre (38.7) (28.7) (52.4) (119.8) - IT Maintenance (40.8) (37.5) (92.9) (171.2) - Incentive programmes set up by Shareholder - - (4.5) (4.5) - Incentive programmes set up by Group (1.4) (6.3) (26.7) (34.4) - M&A costs - (12.0) - (12.0) - Restructuring costs (34.3) - - (34.3) - Other general costs (85.9) (51.1) (307.9) (444.9) Operating EBITDA 293.2 (88.8) 2,443.5 2,647.9 Depreciation and amortisation (269.1) (92.4) (787.6) (1,149.1) Operating profit 24.1 (181.2) 1,655.9 1,498.8 Mondial Relay Other International Poland Total Property, plant, and equipment 1,332.6 648.0 2,821.6 4,802.2 - of which ROU 523.0 146.7 1,017.6 1,687.3 Intangible assets 705.9 9.1 287.1 1,002.1 Goodwill 1,379.9 - - 1,379.9 Total 3,418.4 657.1 3,108.7 7,184.2 210 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 9. Revenue Accounting policy The Group generates revenue primarily from the provision of various courier services to its customers. There are two groups of courier services – traditional and out-of-home deliveries (deliveries of parcels to automated parcel machines, owned or leased by the Group, and/or to collection points). Automated parcel machines are located close to shops in residential areas and are open 24/7, which allows customers to easily pick up parcels. Parcels delivered by courier to automated parcel machines can be collected by the recipient within 48 hours. If the parcel is not collected by the recipient (from courier/ automated parcel machines), it is relocated to a collection point or returned to sender. The Group offers rebates to customers who are able to provide volumes of parcels that exceed certain thresholds in accordance with agreements. The rebates are treated as variable consideration, which is recognised to the extent that it is highly probable that a significant reversal of revenue will not occur. In addition to delivery services, the Group generates revenue from the sale of goods (mainly APMs) and the provision of marketing services. Services Nature, the judgement on 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, automated parcel machine, or collection point and at the point of sending the parcel in case of the Newstrade goods. For uncollected parcels, revenue is recognised upon return to sender. Typically, delivery takes place within 48 hours. Parcels delivered can be collected by the recipient within 48 hours in the case of delivery to automated parcel machines, and within eight days in the case of delivery to a collection point. Therefore, contrary to traditional courier services, delivery and collection do not occur at the same time. 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, and 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 (breakage) do not roll forward to the next month, and, therefore, the Group recognises the breakage amount as revenue at 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 to 90 days. Transaction prices for some contracts may vary due to contractual penalties and volume rebates (variable consideration), resulting in lower revenue. However, this does not represent a significant adjustment. The consideration payable by the Group to its customers, relating to the distinct services, does not decrease the transaction prices (marketing services). Deliveries by couriers and deliveries to APMs 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 case of Newstrade goods the Group acts as an agent therefore the revenue is recognised as a net amount, after the Publisher compensation for its goods (net of cost of sales). Group does not control the goods before they are transferred to Retailers, but facilitates the sale of goods between Publisher and the Retailers. Group performs the logistic services (i.e. delivery services) for which it acts as principal. Apart from 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. Fullfilment services All services comprised by a Fulfilment Service constitute one performance obligation due to the fact that these services are not distinct in the context of the contract and a criterion in IFRS 15 par. 29 (a) is met i.e. Group provides a significant service of integrating the services promised in the contract into a bundle of services that represent the combined output for which the Merchant has contracted (i.e. Group is using the services (warehousing, packaging and shipping services, returns management) as inputs to deliver the combined output being a Fulfilment Service). Other services (marketing, 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. 211 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Revenues from courier services and out-of- home services make up 98% of the Group’s revenues. The table below contains information on receivables and liabilities resulting from contracts with customers: Percentage of total revenue Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Allegro Group 18.0% 18.5% Vinted UAB 22.6% 21.9% Others (<10% of total revenue per customer) 59.4% 59.6% Total 100.0% 100.0% Note 31-12-2024 31-12-2023 Receivables, included in “Trade and other receivables” 25 1,692.4 1,215.3 Contract liability (prepaids) 32 21.3 18.7 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 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; therefore, contract liability from the opening balance is (in principle) fully recognised as revenue in the current year. There is insignificant revenue from breakage amounts, as customers generally exercise all their contractual rights related to prepaids. 10. Depreciation and amortisation Customer concentration/Revenue from major customers The table below presents revenue from major customers as a percentage of total revenue: Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Depreciation of property, plant, and equipment 1,343.5 1,022.5 Amortisation of intangible assets 146.7 126.6 Total depreciation and amortisation 1,490.2 1,149.1 Assigned to direct cost 1,235.9 972.6 Assigned to general and administrative expenses 254.3 176.5 Total 1,490.2 1,149.1 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Logistic services 4,589.5 3,926.8 PUDO points commissions 348.7 414.0 Marketing and Advertising 150.4 101.0 Advisory cost 297.2 179.7 Other 175.1 130.7 Total external services 5,560.9 4,752.2 Assigned to direct cost 4,938.2 4,340.8 Assigned to general and administrative expenses 622.7 411.4 Total 5,560.9 4,752.2 11. External services 212 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 12. Employee benefit costs 14. Financial income and expenses 13. Other expenses Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Payroll, of which: 1,167.5 821.5 Share-based payment 104.9 46.7 Social security contributions 289.9 224.8 Total employee benefit costs 1,457.4 1,046.3 Assigned to direct cost 671.8 545.9 Assigned to general and administrative expenses 785.6 500.4 Total 1,457.4 1,046.3 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Insurances 31.8 31.3 Delegations 30.7 22.3 Costs of damaged parcels 23.2 26.1 Non-taxable expenses 29.5 22.3 Total other expenses 115.2 102.0 Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Other finance income 12.2 4.3 Derivative instruments valuation 31.6 8.2 Total finance income 43.8 12.5 Accounting policy The Group classifies interests from liabilities, including the lease liabilities in Consolidated statement of cash flow, as cash flow from operating activities. Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Foreign exchange losses 9.3 168.0 Interest expense 366.0 369.6 Bank charges and commissions related to debt 3.0 2.4 Other financial costs 7.9 8.4 Total finance costs 386.2 548.4 15. Income tax Accounting policy 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. Current income tax 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. Deferred tax 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. Significant accounting estimates 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 reassesses 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. Numerical information is provided below in Note 15.4. 213 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 15.1. Income tax in profit or loss For the period of the 12 months ended 31 December, 2024, the effective tax rate for the Group was 23.6%, and, for the comparative period of the 12 months ended 31 December, 2023, the effective tax rate for the Group was 30.5%. In the year 2024, statutory tax rates for the Group’s companies ranged from 19.0% in Poland and 25.0% in Great Britain to 31.4% in Italy. The Group is within the scope of the OECD / EU Pillar Two rules. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The Ultimate Parent Entity is located in Luxembourg. Pillar Two legislation was enacted in Luxembourg on 22 December 2023, and came into effect on 1 January 2024. Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Current income tax expense 370.6 287.9 Deferred income tax expense 15.0 (3.3) Income tax expense: continued operations 385.6 284.6 Current income tax expense - - Income tax expense: discontinued operations - - Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Profit (loss) before tax 1,632.8 932.0 Tax using the Group’s domestic tax rate 24.9% 406.6 24.9% 232.1 Effect of tax rates in foreign jurisdictions (6.6%) (107.4) (17.5%) (163.4) Tax-exempt income (0.9%) (15.2) (0.5%) (4.8) R&D tax relief - - (0.1%) (1.2) Non-deductible expenses of which: 1.9% 30.5 7.8% 73.0 Share-based payments costs 0.7% 11.7 0.6% 5.4 Other non-deductible expenses 1.2% 18.8 7. 2% 67.5 Depreciation of acquisition cost capitalised for tax purposes - - (2.6%) (24.6) Deferred tax asset for tax losses not recognised 4.3% 70.1 18.3% 170.3 Tax adjustments related to previous years 0.2% 4.1 - - Losses from previous years to be utilised (0.1%) (1.9) - - Share of result in associate (0.1%) (2.2) 0.8% 7.7 Gain on revaluation (0.1%) (1.6) - - Other 0.2% 2.6 0.3% 3.2 Income tax expense 385.6 284.6 Effective tax rate 23.6% 30.5% Under the legislation, the Group is liable to pay a top-up tax for the difference between their Pillar Two effective tax rate per jurisdiction and the 15% minimum rate. The Group has performed an analysis of the Transitional Safe Harbour rules for the year ended 31 December 2024. The Group has concluded that all jurisdictions within the InPost Group satisfy at least one of the transitional safe harbour tests. As a result, for the year 2024, the Group is not expected to be subject to top-up tax under the rules. 15.2. Reconciliation of effective tax rate In 2024, income tax increased by 35.5% (PLN 101.0 m) from PLN 284.6 m in 2023 to PLN 385.6 m in 2024. This growth was driven by overall growth in business. In terms of effective tax rate, it decreased by 6.9 pp, from 30.5% to 23.6%; this change was caused mainly by the small effect of the valuation of PLN denominated debt in EUR on the level of InPost S.A., where valuation has no tax effect, and the overall improvement in operating results of the Other International segment. This reduced gross loss, whereas no tax benefit was recognized, which led to a lower effective tax rate in 2024. 214 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 15.3. Change in deferred tax assets and liabilities Balance as at 31-12-2024 Reconciliation of movements to profit or loss 2024 Subsidiary acquisition Balance as at 31-12-2023 Reconciliation of movements to profit or loss 2023 Deferred tax assets Impairment allowance for trade and other receivables and inventories 16.5 (0.3) - 16.2 (0.4) Provisions and accruals 65.8 (9.6) - 56.2 (6.3) Lease liabilities 250.5 (34.1) - 216.4 (3.6) Property, plant, equipment, and intangible assets 4.8 (0.1) (4.7) - 0.1 Deferred income - - - - 1.9 Interest accrued 0.2 (0.2) - - 4.5 Foreign exchange differences 5.2 0.6 - 5.8 (3.8) Other items 5.4 (2.6) - 2.8 (1.9) Tax losses carried forward 41.2 (19.1) (3.8) 18.2 11.2 Capitalised acquisition cost - 23.9 - 23.9 (23.9) Total 389.6 (41.6) (8.5) 339.5 (22.2) Net presentation (198.5) 34.1 - (164.4) 13.4 Net deferred tax assets 191.1 (7.5) (8.5) 175.1 (8.8) - to be settled within 12 months 57.1 - - 54.0 - - to be settled in more than 12 months 134.0 - - 121.1 - Deferred tax liability Property, plant, equipment, and intangible assets 348.8 36.9 79.6 232.3 104.5 Right-of-use assets 228.3 8.2 3.7 216.4 (93.1) Interest accrued 21.3 12.7 - 8.6 4.9 Other items 3.3 (1.2) - 4.5 2.6 Total 601.7 56.6 83.3 461.8 18.9 Net presentation (198.5) (34.1) - (164.4) (13.4) Net deferred tax liabilities 403.2 22.5 83.3 297.4 5.5 - to be settled within 12 months 84.7 - - 58.8 - - to be settled in more than 12 months 318.5 - - 238.6 - Net effect recognised in profit or loss 15.0 (3.3) 215 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 15.4. Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items. In the Management’s judgement, 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 . 2024 2023 Unrecognised deferred tax assets Gross amount Tax effect (domestic tax rates) Gross amount Tax effect (domestic tax rates) Tax losses carried forward (United Kingdom, Italy, and Luxembourg) 1,527.3 326.6 1,173.9 249.1 Total unrecognised deferred tax assets 1,527.3 326.6 1,173.9 249.1 Tax losses carried forward for which no deferred tax assets were recognised 2024 2023 Never expire 1,177.7 975.5 Will expire 2040 220.8 67.3 Will expire 2039 61.4 62.5 Will expire 2038 62.0 63.1 Will expire 2037 5.4 5.5 Total tax losses carried forward for which no deferred tax asset was recognised 1,527.3 1,173 . 9 16. Earnings per share (EPS) Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Profit attributable to ordinary equity holders of the Parent: Continuing operations 1,247.2 647.4 Discontinued operations 0.1 - Profit attributable to ordinary equity holders of the Parent for basic EPS 1,247.3 647.4 Effect of dilution - - Profit attributable to ordinary equity holders of the Parent, ad- justed for the effect of dilution 1,247.3 647.4 Total number of shares issued 500,000,000 500,000,000 Effect of own shares held (2,313,318.0) (182,500.0) Weighted average number of ordinary shares for basic EPS 12 499,574,235.9 499,741,030.0 Weighted average number of ordinary shares for diluted EPS 502,057,836 500,000,000 Basic earnings per share (in PLN) 2.50 1.30 Basic earnings per share (in PLN) – continuing operations 2.50 1.30 Basic earnings per share (in PLN) – discontinued operations - - Diluted earnings per share (in PLN) 2.48 1.29 Diluted earnings per share (in PLN) - continuing operations 2.48 1.29 Diluted earnings per share (in PLN) - discontinued operations - - The following table reflects the profit and share information used in the basic and diluted EPS calculations : * Share-Based Incentives based on the general meeting resolution from 2022, until end of 2027 must be settled with treasury shares. As of 31 December 2024, the Group assessed that both performance and continuing employment conditions were met, thus there are shares would be issuable if the reporting date was the end of the contingency period, thus this programme has dilutive effect. 17. Dividends paid and proposed for payment In 2024, and until the date of authorisation of these consolidated financial statements for issue, no dividends were paid or proposed for payment. 12 The weighted average number of shares takes into account the weighted average effect of changes in shares during the year. The differences in the amounts in respective years are due to tax corrections and exchange rates. 216 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Disclosures to Consolidated Statement of Financial Position 18. Goodwill The detail of this line item in the consolidated balance sheet, and of the changes there in the reporting period and in 2024, are as follows : 2024 2023 Opening balance, of which: 1,379.9 1,488.4 Subsidiary acquisition 162.8 - Effect of movements in exchange rates (23.0) (108.5) Closing balance, of which: 1,519.7 1,379.9 Mondial Relay SAS 1,356.1 1,379.9 Menzies Distribution Limited 163.6 - On 15 October, 2024, InPost Group completed the acquisition of 70% interest in Menzies Distribution Limited; goodwill acquired through this business combination (refer to note 18.2) is allocated to the UK segments, disclosed as International Other segment. UK Segment comprises that acquired operation of Menzies Distribution Limited and the pre-existing operation of Inpost Group on UK market as there are synergies expected in the whole operating 18.1. Impairment testing Significant accounting estimates 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). 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. Growth rate Rates are based on cautious expectations of Management, taking into account the possibilities of changes in customers’ behaviour and new market entrants. The post-tax discount rate applied to cash flow projections is 8.4% for Mondial Relay and 8.7% for Menzies. Cash flows beyond the five-year period are extrapolated using a 2.0% growth rate. In 2024, the discount rate for Mondial Relay increased by 1.64 pp in comparison to 2023 as a result of a higher market risk premium. The growth rate beyond the budgeted five-year period remained unchanged in comparison to 2023, representing the prudent approach of the Management, taking into account only nominal increase of cash flows generated by CGU due to CPI changes . segments from the acquisition of Menzies Distribution Limited. Goodwill raised through the acquisition of Mondial Relay is 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 the International Mondial Relay segment. 217 Growth rate Change in growth rate -2.0 pp -1.0 pp +1.0 pp + 2.0 pp Growth rate for UK 2.0% - 1.0% 3.0% 4.0% Headroom 5,937.9 4,184.3 4,947.3 7,276.2 9,184.0 Growth rate for MR 2.0% - 1.0% 3.0% 4.0% Headroom 677.1 (506.9) 5.1 1,598.1 2,937.6 Impairment test – Mondial Relay and the UK The recoverable amount was based on a 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 valuation is considered to be level 3 in the fair value hierarchy, due to unobservable inputs used in the valuation. As a result of the analysis, the Management InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION UK Mondial Relay Recoverable amount (fair value less costs of disposal) 7,151.6 3,735.6 Carrying amount of net assets of which: 1,213.7 3,058.5 Goodwill 163.6 1,356.1 Brand - 161.5 Headroom 5,937.9 677. 1 The following is a summary of the total recoverable amount and carrying amount at the end of the reporting period: Sensitivity analysis to discount rates: WACC ratio Change in WACC -2.0 pp -1.0 pp +1.0 pp + 2.0 pp WACC for UK 8.7% 6.7% 7.7% 9.7% 10.7% Headroom 5,937.9 10,005.9 7,605.8 4,716.4 3,786.5 WACC for MR 8.4% 6.4% 7.4% 9.4% 10.4% Headroom 677.1 3,440.1 1,792.8 (123.2) (721.6 ) did not identify an impairment of International Mondial Relay and Other International segment assets. Sensitivity analysis to growth rate assumption : The Group considered the following climate-related matters and their potential impact on five-year budgets for Mondial Relay CGU and UK CGU: • Increased operating expenditure due to introduction of a carbon tax and/or a cap-and-trade system on transport sector and buildings – at the current time, no legislation has been passed that will impact the Group; as the probability of implementation of those taxes before 2029 (which is the final year of the Group’s financial plans) are very low, the risks were not considered during the preparations of the five-year financial plans. The Group constantly monitors the latest government legislation regarding climate-related matters; • Risk of being accused of greenwashing in marketing communication to customers regarding the Group’s impact on the climate – the risk was considered at a Group level for the purpose of preparing five-year plans; sufficient mitigation steps were taken into account when preparing the five-year plan in terms of costs of internal trainings and sufficient budgeted costs related to external audit services, and advisory costs related to ESG; • Potential opportunities related to climate changes – for instance, an increase in consumer preference to use out-of-home deliveries as a more environmentally friendly form of parcel deliveries – were not taken into account during the preparation of five-year plans due to the Management’s prudent approach to potential revenue/ volumes upsides. UK - disclosed as International Other Segment 218 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 18.2. Acquisition of Menzies Distribution Group On 15 October, 2024, InPost Group exercised the call option acquiring the remaining 70% of shares and increasing its shareholdings in Menzies Distribution Limited to 100%. As a result, InPost Group obtained a control over Express and Newstrade operations carried out by Menzies Distribution Limited and its related entities. The third segment, MDS (Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited)), responsible mainly for full load transport and warehousing was demerged from Menzies and is not the part of the transaction. As the result of the transaction, InPost Group recognised PLN 6.5 m gain on revaluation of previously owned shares in associate. It will continue to be run by its existing management team and InPost will retain a 30% shareholding in MDS . Provisional fair values as at acquisition date Assets (+) Intangible assets of which: 336.0 Customer relationship 315.4 Software 20.6 Property, plant, and equipment 44.6 Right-of-use assets 225.0 Trade and other receivables 337.7 Other assets 90.6 Cash and cash equivalents 59.4 Liabilities (-) Provision for deferred tax 73.9 Loans and borrowings 71.7 Other financial liabilities 225.0 Current tax liabilities 2.6 Trade and other liabilities 496.6 Employee benefits and other provisions 5.1 The fair value of identified net assets 218.4 The fair value of identifiable net assets at the time of acquisition : Pre-existing 30% equity interest in Menzies Distribution Limited was remeasured to its fair value as at the acquisition date, which resulted in recognition of profit on remeasurement of previously held interest in the estimated amount of PLN 6.5 m (being PLN 132.4 m corresponding to fair value of pre-existing equity interest as at the acquisition date, PLN 8.8 m corresponding to valuation of pre-existing client relationships, PLN 1.7 m recycled OCI less PLN 136.4 m related to the carrying amount of the equity-accounted investee at the date of acquisition). Goodwill acquired through this business combination is fully allocated to the International Other segment. The goodwill is non-deductible for income tax purposes. From the date of acquisition, M HOLDCO 1 Limited contributed PLN 220.0 m to revenue and PLN 18.9 m to profit before tax from continuing operations of the Group. If the M HOLDCO 1 Limited acquisition had taken place at the beginning of the annual reporting period (1 January, 2024) InPost Group revenues and net profit would have been as follows: Goodwill recognised at the acquisition date: InPost Group – if M HOLDCO 1 Limited acquisition had completed on 1 January, 2024 Period of 12 months ended on 31-12-2024 (unaudited) Revenue 11,582.3 Operating profit 2,048.6 Net profit 1,407.5 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 13.4 m. Purchase consideration - cash outflow Purchase consideration paid in cash: 284.9 Cash and cash equivalents acquired (59.4) Acquisition of a subsidiary, net of cash acquired 225.5 Provisional fair values as at acquisition date Purchase consideration 289.2 Deferred payments 19.6 Purchase price of 70% shares 308.8 Value of pre-existing relationships (non-market contract) 8.8 Trade receivables from InPost Group (68.8) Acquisition price of 30% shares after revaluation 132.4 Purchase price of 100% shares 381.2 Minus: The fair value of identified net assets 218.4 The goodwill arising on the acquisition 162.8 219 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 19. Investment in an associate Accounting policy Recognition and measurement Investment in an associate is accounted for under the equity method. On initial recognition, the investment is recognised at cost. If there is a negative difference between cost and share on investee’s net fair value of identifiable assets and liabilities, then it is recognised as an income in profit or loss in the period in which the investment is acquired. Subsequently, the carrying amount of the investment is increased or decreased by the Group’s share on investee’s net profit or loss and Group’s shares of other comprehensive income after the acquisition date. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment. Significant judgements Significant influence As of 31 December, 2024, the Group has one material associate – Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) holding 30% of economic and voting rights (29.3% of issued shares) in Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited). Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) was demerged by way of capital reduction of the Menzies Group. as described in note 6.4. As of 31 December, 2023, InPost Group held 30% interest in Menzies Distribution Group Limited together with the option to acquire further 70% of interest, and the Management concluded that InPost Group had significant influence but did not obtain a control. On 14 October, 2024, as part of the Share Purchase Agreement (“SPA”), Menzies Distribution Group Limited (MDG) was restructured to separate and demerge its two main trading operations into the companies: Menzies Distribution Limited (controlled by InPost Group as of 31.12.2024 see note 18.2 above) and Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited). As of 31 December, 2024, the Management has concluded that InPost Group has significant influence but not outright control over Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited). The Group has appointed two non- executive members out of Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) Board of Directors. Accordingly, the Group has classified Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) as an associate, which is included in these Consolidated Financial Statements using the equity method. Significant accounting estimates Call Option Valuation As mentioned above, InPost received a three-year call option for the remaining 70% of Menzies’ shares exercisable at any time during the option period. In accordance with IFRS 13, the fair value of an option at any point in time was made up of two basic components – intrinsic value and time value. If the option is exercised after 18 months from the conclusion of the SPA, the base price is dependent on the current adjusted EBITDA of Menzies . Adjusted EBITDA means the EBITDA of Menzies target segments before any adjustments for IFRS 16. Based on the comparable companies’ analysis, EV/EBITDA multiples for the last twelve months are in the range between 3.7x and 6.8x as of the Valuation Date (June 30, 2023), EBITDA multiple assumed in the Call Option is within those market ranges as of the Valuation Date. It was determined that at the previous Name of associate Country of incorporation and principal place of business Principal activity Accounting method Proportion of ownership interests held by the Group at year end 2024 2023 Menzies Distribution Group Limited United Kingdom and Republic of Ireland Logistics Equity method (IAS 28) - 29.3% Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) United Kingdom and Republic of Ireland Logistics Equity method (IAS 28) 29.3% - reporting date and at the option exercise date in October 2024 the valuation of option was approximate zero. 220 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION InPost Group completed the acquisition of Menzies Distribution Group Limited (further information is provided in the Note 18.2). The transaction was described in Note 6.4. The control over M HOLDCO 1 was obtained on 15 October, 2024 nevertheless as the accounting using 30 September, 2024 as the date of obtaining control didn’t result in material difference, the data for 9 months ended 30 September, 2024 were used to account for the share of the profit of associate. Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited), responsible mainly for full load transport and warehousing, was demerged from Menzies and was not part of the transaction. The Group has no additional commitments or contingent liabilities relating to Menzies. No dividends were received from the associate during the year ended 31 December, 2024. The following is summarised financial information for Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited), based on its preliminary consolidated financial statements, prepared in accordance with IFRS, and modified for fair value adjustments (preliminary) on acquisition of interest in associate in July 2023 and differences in the Group’s accounting policies . Balance as at 31-12-2024 Non-current assets, including: 732.3 Goodwill 42.1 Current assets, including: 269.7 Cash and cash equivalents 21.3 Total assets 1,002.0 Non-current liabilities, including: 172.3 Non-current financial liabilities (excluding trade and other payables and provisions) 81.5 Current liabilities, including: 515.3 Current financial liabilities (excluding trade and other payables and provisions) 243.2 Total liabilities 687.6 Net assets 314.4 Period of 3 months ended 31-12-2024 Revenue 299.3 Operational costs, of which: (287.3) Depreciation and amortisation (26.3) Other operating income/costs (3.2) Net interest expense (4.1) Income tax expense (income) 1.6 Profit/(loss) from continuing operations 6.3 Profit/(loss) from discontinued operations - Other comprehensive income (1.4) Total comprehensive income 4.9 A reconciliation of the above summarised financial information to the carrying amount of the investment in Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) is set out below: 2024 Opening balance of net assets of Menzies Distribution Group Limited 705.2 Carrying amount of the net assets allocated to Menzies Distribution Limited purchase of 70% remaining shares in M HOLDCO 1 Limited (460.0) Profit for the period of 9 months ended on 30-09-2024 22.7 Other comprehensive income for the 9 months ended on 30-09-2024 41.6 Net assets of Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) after reorganisation of Menzies Distribution Group Limited (including goodwill) 309.5 Profit for the period of 3 months ended on 31-12-2024 6.3 Other comprehensive income for the 3 months ended on 31-12-2024 (1.4) Closing balance of net assets 314.4 Proportion of ownership interests held by InPost Group 30.0% Carrying amount of the investment in Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) 94.2 Allocation of goodwill between Menzies Distribution Limited (formerly M HOLDCO 1 Limited) and Menzies Distribution Services was carried out based on the present value as of June 30, 2023, of future discounted cash flows in accordance with the financial plans that formed the basis for the acquisition transaction of a 30% stake in 2023 . 221 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION The following is summarised financial information for Menzies Distribution Group Limited as at 31.12.2023, based on its consolidated financial statements prepared in accordance with IFRS, modified for fair value adjustments (final) on acquisition and differences in the Group’s accounting policies. Balance as at 31-12-2023 Non-current assets, including: 1,651.8 Goodwill 119.2 Current assets, including: 703.6 Cash and cash equivalents 57.7 Total assets 2,335.4 Non-current liabilities, including: 784.8 Non-current financial liabilities (excluding trade and other payables and provisions) 57 7.9 Current liabilities, including: 865.4 Current financial liabilities (excluding trade and other payables and provisions) 153.4 Total liabilities 1,650.2 Net assets 705.2 Period of 6 months ended 31-12-2023 Revenue 1,335.9 Operational costs, of which: (1,308.7) Depreciation and amortisation (143.5) Other operating income/costs (139.9) Interest income - Interest expense (26.8) Income tax expense (income) 36.4 Profit/(loss) from continuing operations (103.1) Profit/(loss) from discontinued operations - Other comprehensive income (42.5) Total comprehensive income (145.6) A reconciliation of the above summarised financial information to the carrying amount of the investment in Menzies Distribution Group Limited is set out below: 2023 Total net assets of Menzies Distribution Group Limited Reconciliation of carrying amounts: Opening balance of net assets 850.8 Profit/(loss) for the period (103.1) Other comprehensive income (42.5) Closing balance of net assets 705.2 Proportion of ownership interests held by the InPost Group 30.0% Carrying amount of the investment in Menzies Distribution Group Limited 211.5 222 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 20. Other financial assets Accounting Policies Derivative financial instruments InPost Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps to economically 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. Loans measured at fair value through profit and loss As part of strategic projects InPost Group enters loan agreements, which contractual cash flows are not payments of principal and interest on the principal amount outstanding because they reflect a return that is inconsistent with a basic lending arrangement (the return is linked to the value of the equity instrument). These loans fail the SPPI test, thus are measured at fair value through profit and loss. For a valuation of such loans the Group uses discounted cashflows associated with strategic projects for which the sea loans were granted. Future cashflows are discounted using relevant floating rates adjusted by margins on InPost Group’s debt and by credit risk of the borrower . Long term financial assets Short term financial assets Convertible loans valued through P&L Interest bearing loans valued at amortised cost Financial instruments valued through P&L Amount at the beginning of period - - 7.9 Proceeds from financial instruments - - (21.2) Loans granted 127.6 - - Total changes from financing cash flows 127.6 - (21.2) Subsidiary acquisition - 57.8 - Valuation at FVPL - - 31.6 Interest income - 0.1 - Effect of changes in foreign exchange rates 1.1 0.2 (0.5) Non cash movements 1.1 58.1 31.1 Amount at the end of the period 128.7 58.1 17.8 At 31 December, 2024, convertible loans valued through P&L related to loans granted by the Group to Judge Logistics Limited (owner of courier brand Yodel), loans are due in July 2029 (5 years). Loans are convertible to Judge Logistics Limited shares (starting from 1 May, 2025), which will represent 45% of total borrower equity. Loans are non-interest bearing. Management has assessed the terms and conditions of the convertible loan and concluded that it does not give a significant influence. Group used third level of hierarchy of Fair Value for valuation of this loan. At 31 December, 2024, Interest bearing loans valued at amortised cost consist of Loans between Menzies Distribution Limited (acquired under M HOLDCO 1 by InPost Group in October 2024) and Menzies Distribution Solutions Limited which after restructuring of Menzies Group described in disclosure 6.4 weren’t acquired by the Group. Loans are repaid on repayment of Loans acquired with Menzies to Royal Bank of Scotland, Loans will be repaid fully until July 2025. At 31 December, 2024, financial instruments valued at FVPL consist of Interest Rate Swap agreement with PNB Paribas and Virtual Power Purchase agreement with Polenergia. Fair value measurement Fair value measurement is based on the following fair value measurement hierarchy: 1. Quoted prices (unadjusted) in active markets; 2. Inputs other than quoted prices that are observable either directly (prices) or indirectly (derived from quoted prices); 3. Inputs based on observable market data. Valuation techniques used include the use of recent arm’s-length transactions, reference to other instruments that are substantially the same, statutory/ management reports and discounted cash flow analysis. Financial assets and liabilities measured at amortised costs using the effective interest method A financial asset is measured at amortised cost if both of the following conditions are met: 1. The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and 2. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding . All financial liabilities are measured at amortised cost, except for financial liabilities at fair value through profit or loss. Financial liabilities are recognised initially at fair value net of transaction costs incurred and are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the financial liability using the effective interest method. 223 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 21. Intangible assets Accounting policy Recognition and measurement Intangible assets acquired in a business combination (customer relationship, trademarks, and brands) are measured at cost, less any accumulated impairment losses. The cost of such an intangible asset at initial recognition is its fair value at the acquisition date. Other 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. Internally generated intangible assets (development costs/software/intangible assets in progress) The Group records directly attributable expenses for development projects using management accounts and respective allocation keys. Major directly attributable costs are the costs of materials and services used or consumed, as well as the costs of the Group’s own employees’ remuneration engaged in the development project. The time allocated to the project by an employee has to be reliably measured and documented. Significant accounting estimates Amortisation and estimating the useful life The Group assessed that the useful lives of all its intangible assets, except for some of the acquired brands, are finite, and are, therefore, amortised using the straight-line method over their estimated useful lives. Amortisation is recognised in the profit or loss in the Depreciation and amortisation line. For major items of intangibles, the Group assessed that their residual values are zero. Intangible assets with indefinite useful lives (the “Mondial Relay” brand) are not amortised, but tested for impairment annually, either individually or at the cash- generating unit level. The results of the impairment test are disclosed in Note 18.1. Amortisation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate. The effect of a change in the above- mentioned estimates shall be recognised prospectively. The estimated useful lives of intangibles assets for all presented periods are as follows: Type Period Brand (“Mondial Relay”) Indefinite Development costs 5–10 years Trademarks 30 years Software 2–10 years Customer relations 5-14 years Customer relations amortisation 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 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. Impairment testing The Group assessed all not-yet-available for use, internally generated intangible assets at balance sheet date for impairment. For every open project (not- yet-available for use, internally generated intangible asset), the Group has made sure that it is possible to complete it (the project goal is still valid; the Group has available resources in terms of employees, knowledge, and technology to complete it). Based on the analysis carried out, the Group has not recognised impairment on any of the intangible assets that are not- yet-available for use. Recoverability of internally generated intangible assets Due to the nature of the Group’s operations, most intangible assets are developed internally, including software. The most significant internally generated intangible assets are: • Software: InPost Logistic Solution – operational software used in Poland; InPost Application for mobile phones; APM steering and monitoring software SZOP; Courier APP; PUDO software for international markets; • Development costs: Development Projects introducing Lean strategy in warehouses in PL and tools to monitor quality of operations; • Intangible assets in progress: outlays related to the implementation of new ERP system. The realisation of development projects and capitalisation of respective costs to intangible assets are subject to corporate approval. In order to approve the project for development, a comprehensive analysis is performed based on information provided by sales, logistics, marketing, and finance functions. 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. Based on Management review, there is no impairment loss in intangible assets in progress . 224 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Customer relationship Brand Development costs Trademarks Software Intangible assets in progress Total Cost at 01-01-2024 673.9 164.3 125.7 8.2 336.4 160.0 1,468.5 Additions - - - - - 240.7 240.7 Subsidiary acquisition 315.4 - - - 20.1 - 335.5 Reclassification - - 0.9 0.4 322.5 (323.8) - Disposal - - - - (52.6) (3.5) (56.1) Effect of movements in exchange rates (10.1) (2.8) - - 0.8 (0.4) (12.5) Cost at 31-12-2024 979.2 161.5 126.6 8.6 627.2 73.0 1,976.1 Accumulated amortisation at 01-01-2024 203.6 - 125.0 2.5 132.8 - 463.9 Amortisation for the period 90.0 - 0.2 56.5 - 146.7 Reclassification - - - - - - - Disposal - - - - (44.3) - (44.3) Effect of movements in exchange rates (4.0) - - - 0.2 - (3.8) Accumulated amortisation at 31-12-2024 289.6 - 125.0 2.7 145.2 - 562.5 Impairment losses at 01-01-2024 - - 0.4 - 2.1 - 2.5 Impairment loss - - - - - - - Disposal - - (0.4) - (2.1) - (2.5) Effect of movements in exchange rates - - - - - - - Impairment losses at 31-12-2024 - - - - - - - Carrying amount at 31-12-2024 689.6 161.5 1.6 5.9 482.0 73.0 1,413.6 225 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Customer relationship Brand Development costs Trademarks Software Intangible assets in progress Total Cost at 01-01-2023 726.9 177.3 126.0 7.3 177.2 185.5 1,400.2 Additions - - - - - 146.1 146.1 Reclassification - - - 0.9 168.2 (169.1) - Disposal - - - - (5.9) (1.2) (7.1) Effect of movements in exchange rates (53.0) (13.0) (0.3) - (3.1) (1.3) (70.7) Cost at 31-12-2023 673.9 164.3 125.7 8.2 336.4 160.0 1,468.5 Accumulated amortisation at 01-01-2023 128.7 - 118.1 2.0 105.9 - 354.7 Amortisation for the period 84.3 - 7.0 0.5 34.8 - 126.6 Reclassification - - - - - - - Disposal - - - - (5.7) - (5.7) Effect of movements in exchange rates (9.4) - (0.1) - (2.2) - (11.7) Accumulated amortisation at 31-12-2023 203.6 - 125.0 2.5 132.8 - 463.9 Impairment losses at 01-01-2023 - - 0.4 - 2.1 - 2.5 Impairment loss - - - - - - - Disposal - - - - - - - Effect of movements in exchange rates - - - - - - - Impairment losses at 31-12-2023 - - 0.4 - 2.1 - 2.5 Carrying amount at 31-12-2023 470.3 164.3 0.3 5.7 201.5 160.0 1,002.1 226 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 22. Property, plant, and equipment Accounting policy Recognition and measurement Assets are measured at cost, less any accumulated depreciation and any accumulated impairment losses. In particular, for parcel machines, the initial value comprises all the costs of setting up the machine, which include agents’ commissions for acquiring right to use the land, the costs of transporting the machine, and installation and 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 profit or loss in the statement of comprehensive income at the time they are incurred. Subsequent expenditures that are capitalised by the Group to property, plant, and equipment are mainly related to parts and extensions of automated parcel machines installed when the 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. 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. Within Property, plant, and equipment, the Group decided to present right-of- use assets (RoU) resulting from the lease arrangement – detailed information about the lease is presented in Note 23.1 below . Borrowing costs The Group assessed that the time necessary to assemble and install automated parcel lockers is relatively short, and the incurred borrowing costs (e.g. interest related to long-term financing) do not qualify for capitalisation. Therefore, these costs are recognised in profit or loss. Type Period Buildings 10–40 years Technical equipment and machines 8–10 years Automated parcel machines 15 years Vehicles 5 years Other 2–7 years Impairment losses At the end of each reporting period, the Group assesses 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 considers internal and external sources of information. The recoverable amount is determined for individual assets or cash-generating units (CGUs). The Group determines separate CGUs for operations in Poland and for foreign operations. Impairment losses and subsequent reversals are recognised in the profit or loss in operating expenses. As of the reporting date, Group Management has recognised impairment on damaged APMs in the value of PLN 2.6 m. Significant accounting estimates Depreciation and estimating useful life Depreciation is recognised on a straight- line basis over the estimated useful life to write down the cost, less estimated residual value, and is generally recognised in profit or loss. The estimated useful lives of property, plant, and equipment for all presented periods are as follows: 227 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Land and buildings Machinery and equipment Vehicles Other RoU Assets under construction 13 Total Cost at 01-01-2024 55.9 3,745.6 23.2 45.2 3,259.8 395.5 7,525.2 Additions - - - - 1,683.6 1,161.4 2,845.0 Subsidiary acquisition 3.6 40.0 - - 225.0 - 268.6 Reclassification 27.6 1,041.4 14.7 22.5 (6.3) (1,099.9) - Termination/disposal (0.1) (63.9) (0.4) (12.1) (106.8) - (183.3) Effect of movements in exchange rates (0.7) 2.6 - - (12.8) (4.2) (15.1) Cost at 31-12-2024 86.3 4,765.7 37.5 55.6 5,042.5 452.8 10,440.4 Accumulated depreciation at 01-01-2024 14.4 1,103.6 5.4 25.2 1,567.9 - 2,716.5 Depreciation for the period 12.1 326.8 5.2 9.2 990.2 - 1,343.5 Reclassification - 3.9 1.1 - (5.0) - - Termination/disposal (0.1) (58.1) (0.3) (11.9) (82.5) - (152.9) Modifications - - - - (3.2) - (3.2) Effect of movements in exchange rates (0.3) - - - (4.3) - (4.6) Accumulated depreciation at 31-12-2024 26.1 1,376.2 11.4 22.5 2,463.1 - 3,899.3 Impairment losses at 01-01-2024 - 1.6 - - 4.6 0.3 6.5 Impairment loss - 2.6 - - - - 2.6 Termination - (2.3) - - (4.6) - (6.9) Effect of movements in exchange rates - - - - - - - Impairment losses at 31-12-2024 - 1.9 - - - 0.3 2.2 Carrying amount at 31-12-2024 60.2 3,387.6 26.1 33.1 2,579.4 452.5 6,538.9 In terms of Net Book Value, the most significant Property, plant, and equipment of the Group are machinery and equipment – namely, automated parcel machines; and assets under construction – that is, parts of automated parcel machines that are in the process of completion or assembly and have not yet been installed. 13 Assets under construction comprise mainly not-yet-deployed APMs and materials for the production of APMs . 228 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Land and buildings Machinery and equipment Vehicles Other RoU Assets under construction 14 Total Cost at 01-01-2023 55.9 3,122.4 13.5 37.9 2,539.7 377.7 6,147.1 Additions - - - - 957.3 823.6 1,780.9 Reclassification 11.3 766.1 9.9 10.7 (6.7) (791.3) - Termination/disposal (8.5) (49.0) (0.1) (2.6) (170.0) (1.3) (231.5) Effect of movements in exchange rates (2.8) (93.9) (0.1) (0.8) (60.5) (13.2) (171.3) Cost at 31-12-2023 55.9 3,745.6 23.2 45.2 3,259.8 395.5 7,525.2 Accumulated depreciation at 01-01-2023 14.9 854.4 3.2 19.3 1,020.8 - 1,912.6 Depreciation for the period 8.7 307.7 2.3 8.7 695.1 - 1,022.5 Reclassification - 6.1 - - (6.1) - - Termination/disposal (8.0) (43.8) (0.1) (2.6) (119.2) - (173.7) Modifications - - - - (3.0) - (3.0) Effect of movements in exchange rates (1.2) (20.8) - (0.2) (19.7) - (41.9) Accumulated depreciation at 31-12-2023 14.4 1,103.6 5.4 25.2 1,567.9 - 2,716.5 Impairment losses at 01-01-2023 - - - - 4.6 3.3 7.9 Impairment loss - 1.7 - - - (3.0) (1.3) Termination - - - - - - - Effect of movements in exchange rates - (0.1) - - - - (0.1) Impairment losses at 31-12-2023 - 1.6 - - 4.6 0.3 6.5 Carrying amount at 31-12-2023 41.5 2,640.4 17.8 20.0 1,687.3 395.2 4,802.2 14 Assets under construction comprise mainly not-yet-deployed APMs and materials for the production of APMs . 229 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 23. Leases Accounting policy The Group mainly leases the following underlying assets: • equipment, mostly automated parcel machines and sorting equipment; • land on which automated parcel machines are installed; • warehouses and offices; • vehicles and trailers. The lease payments are fixed, or they are variable and depend on the CPI index. Exemptions The Group has chosen not to apply low-value asset exemption, and, as a consequence, recognises as leases all contracts meeting lease recognition criteria, despite the underlying asset value. The Group applies a practical expedient for short-term leases, except for leases related to vehicles and trailers. Some contracts regarding the lease of land for automated parcel machines include one fixed amount of rent that covers rent and other costs (e.g. energy costs) that cannot be separated from lease rent. For such contracts, the Group chooses not to separate non-lease components (i.e. energy costs) from lease components and, instead, accounts for each lease component, and any associated non-lease components, as a single lease component. Significant judgements Lease definition Despite the legal form of contracts for logistic services (warehouses) and courier and transportation services (vehicles and trailers), such contracts are accounted for as contracts with lease components. 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. Services are provided to the Group on an exclusive basis, so the Group obtains economic benefits from the use of warehouses, vehicles, and trailers. Significant accounting estimates Period Land 12 months Warehouses 12-24 months Vehicles and trailers, including: key providers 12 months other 1–3 months Lease term For each lease contract, the Group determines the lease term as the non- cancellable period of lease, which equals the period for which the contract was concluded, when it is reasonably certain that the Group will not exercise an option to terminate the contract or to extend the lease. Contracts concluded for a definite period generally do not include early termination or the option to extend the lease term. Most of the lease contracts are concluded for an indefinite period with a relatively short termination notice period (up to a few months). Lease term of contracts concluded for an indefinite period A significant portion of contracts for courier and transportation (vehicles and trailers) and logistic services (warehouses), as well as leases of land for automated 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 automated parcel machines). Lease providers rotate, and the Group changes the locations of automated parcel machines, which results 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. Moreover, taking into account additional costs relating to the termination of a contract (costs of finding a new location for an APM, warehouse spaces and logistics service providers that meet Group standards), the Management has assessed that the Group is able to terminate a contract, without any significant costs and interruptions to its operations, only within respective periods presented in the table below from the contract exit decision. For each group of assets with lease agreements concluded for an indefinite period, the Management Board assessed the expected lease period, taking into account the Group’s current strategy and the irrevocable lease term, as specified below : 230 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Discount rate The present value of the lease payments is discounted using the interest rate implicit in the lease (where such a 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 according to the nature of the underlying assets. The table below presents the weighted average discount rates applied for leases in 2024 and 2023 (at the commencement of the lease or at modification of lease term if revision of discount rate is required by IFRS16). 2024 2023 Maturity Currency Currency PLN EUR PLN EUR Up to 12 months 7.44% 4.48% 8.57% 4.92% 1–3 years 7.24% 4.11% 8.12% 4.99% 3–5 years 7.17% 3.72% 7.63% 4.70% 5–7 years 7.17% 3.60% 7.50% 4.61% 7–10 years 7.30% 3.60% 7.53% 4.60% over 10 years 7.40% 3.67% 7.40% 4.63% Purchase option At the lease commencement date, the Group assesses whether it is reasonably certain to exercise the right to purchase the underlying asset. If certain, 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. 231 Land and buildings Machinery and equipment Vehicles Other Total Cost at 01-01-2024 2,430.4 95.2 705.3 28.9 3,259.8 New leases 902.3 34.7 123.4 4.0 1,064.4 Modifications 171.4 (2.6) 114.2 - 283.0 Renewals: indefinite period 161.4 - 174.8 - 336.2 Subsidiary acquisition 180.8 - 44.2 - 225.0 Reclassification 9.4 (0.5) (8.2) (7.0) (6.3) Termination of a contract (56.2) (16.4) (34.2) - (106.8) Effect of movements in exchange rates (9.6) (1.5) (1.1) (0.6) (12.8) Cost at 31-12-2024 3,789.9 108.9 1,118.4 25.3 5,042.5 Accumulated depreciation at 01-01-2024 1,029.6 24.3 511.2 2.8 1,567.9 Depreciation for the period 619.8 37.4 330.1 2.9 990.2 Modifications (1.7) (0.9) (0.6) - (3.2) Reclassification - (3.9) (1.1) - (5.0) Termination of a contract (49.0) (9.0) (24.5) - (82.5) Effect of movements in exchange rates (3.6) (0.7) - - (4.3) Accumulated depreciation at 31-12-2024 1,595.1 47.2 815.1 5.7 2,463.1 Impairment losses at 01-01-2024 - 4.6 - - 4.6 Termination - 4.6 - - 4.6 Impairment losses at 31-12-2024 - - - - - Carrying amount at 31-12-2024 2,194.8 61.7 303.3 19.6 2,579.4 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 23.1. Right-of-use assets Right-of-use assets are presented in Property, plant, and equipment. The table below 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 01-01-2023 1,884.2 72.7 552.0 30.8 2,539.7 New leases 447.4 35.4 78.3 1.2 562.3 Modifications 130.2 - 172.0 - 302.2 Renewals: indefinite period 92.6 0.2 - - 92.8 Reclassification - (6.7) - - (6.7) Termination of a contract (71.1) (1.9) (96.4) (0.6) (170.0) Effect of movements in exchange rates (52.9) (4.5) (0.6) (2.5) (60.5) Cost at 31-12-2023 2,430.4 95.2 705.3 28.9 3,259.8 Accumulated depreciation at 01-01-2023 634.6 5.5 378.3 2.4 1,020.8 Depreciation for the period 460.4 27.6 205.8 1.3 695.1 Modifications (2.9) - (0.1) - (3.0) Reclassification - (6.1) - - (6.1) Termination of a contract (44.8) (1.3) (72.5) (0.6) (119.2) Effect of movements in exchange rates (17.7) (1.4) (0.3) (0.3) (19.7) Accumulated depreciation at 31-12-2023 1,029.6 24.3 511.2 2.8 1,567.9 Impairment losses at 01-01-2023 - 4.6 - - 4.6 Impairment losses at 31-12-2023 - 4.6 - - 4.6 Carrying amount at 31-12-2023 1,400.8 66.3 194.1 26.1 1,687.3 232 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 23.2. 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 31-12-2024 31-12-2023 up to 1 year (current) 974.8 664.2 from 1 to 3 years (non-current) 1,000.6 642.4 from 3 to 5 years (non-current) 362.1 327.8 more than 5 years (non-current) 357.9 157.2 Total 2,695.4 1,791.6 As at 31 December, 2024, the Group had five lease agreements that had not yet commenced in 2024 but to which the Group is committed. The future cash outflow corresponding to those agreements is equal to PLN 161.2 m. The payments equal PLN 3.0 m in 2025, PLN 16.4 m in 2026, PLN 22.7 m in each year from 2027 to 2031, PLN 13.1 m in 2032, PLN 5.5 m in each year from 2033 to 2034, and PLN 4.3 m in 2035. As at 31 December, 2023, the Group had eight lease agreements that have not yet commenced in 2023 but to which the Group is committed. The future cash outflow corresponding to those agreements is equal to PLN 45.7 m. The payments equal PLN 6.0 m in 2024, PLN 13.7 m in 2025 and PLN 26.0 m in 2026. 24. Other assets Other assets are presented in the balance sheet as current and non-current depending on their expected period of realisation. Balance as at 31-12-2024 31-12-2023 Policies, other insurance 2.1 - Prepaid services 6.9 4.0 Prepayments for property, plant, equipment, and intangible assets 38.7 39.3 Non-current 47.7 43.3 Policies, other insurance 1.0 0.9 Prepaid services 92.1 50.7 Current 93.1 51.6 Total other assets 140.8 94.9 233 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 25. Trade and other receivables Accounting policy 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 central banks from the day immediately preceding the recognition of the receivable. For the purposes of subsequent measurement, trade receivables are recognised as the “held to collect” business model, where the receivables are measured at amortised cost using the effective interest method, less loss allowance, determined in accordance with the expected credit loss model under IFRS 9 Financial Instruments. The Group applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables that do not contain a significant financing component. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due (portfolio approach). In the cases of clients from Allegro and Vinted Group, the Group applies an individual approach. The Group considers a financial asset in default when contractual payments are 60 days past due. Balance as at 31-12-2024 31-12-2023 Trade receivables 1,692.4 1,215.3 Other receivables 263.3 224.6 Total trade and other receivables 1,955.7 1,439.9 Trade receivables are non-interest-bearing and have an average maturity of 21 days. Receivables from Allegro and Vinted were responsible for 26.9% of the Group’s trade receivables as of 31 December, 2024, and 34.4% of the Group’s trade receivables for the 12 months ended 31 December, 2023. Balance as at 31-12-2024 31-12-2023 Trade receivables (gross) at amortised cost 1,815.9 1,319.8 Expected credit losses – individual approach (118.6) (100.3) Expected credit losses – collective approach (4.9) (4.2) Total trade receivables 1,692.4 1,215.3 Expected credit losses (portfolio approach) In the case of trade receivables (not subject to individual assessment), the Group applies a portfolio approach in calculating ECLs based on its historical data of one year of credit losses in relation to trade receivables for the majority of its customers. Individual approach For the biggest individual clients (i.e. Allegro, Vinted), the Group calculates ECLs based on the individual client’s credit rating. In addition, on top of ECL calculated in the collective approach, the detailed individual monitoring and assessment of the trade receivables is performed, resulting in 100% expected credit loss allowance for the receivables: • past due for more than 1 year; • subject to a debt restructuring process; • subject to legal proceedings; • cancelled subscriptions . 234 31-12-2024 31-12-2023 Opening balance 104.5 93.5 Decrease: utilisation - - Expected/incurred credit losses recognised/(reversed) 18.7 9.6 Exchange rate difference 0.3 1.4 Closing balance 123.5 104.5 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 25.1. Other receivables Set out hereunder is the movement in the allowance for expected credit losses on trade receivables based on a collective approach and an individual approach: The expected credit loss (portfolio approach) is calculated as the expected gross carrying amount of the financial asset at default date multiplied by the expected credit loss rate, the product of probability of default index (PD) is calculated for each ageing bucket and loss given default (LGD) index. Expected credit loss in the cases of Allegro and Vinted (individual approach) was calculated as probability of default index (PD) calculated for each ageing bucket and loss given default (LGD) equal to 0%. Therefore, no bad debt was calculated for those two customers. 31-12-2024 Current 0–60 days 61–365 days Total Expected credit loss rate 0.08% 0.29% 9.87% - Estimated gross carrying amount at defaul 794.9 126.1 40.0 961.0 Expected credit loss 0.6 0.4 3.9 4.9 Expected credit loss allowance based on the collective approach (excluding Allegro and Vinted) : 31-12-2023 Current 0–60 days 61–365 days Total Expected credit loss rate 0.04% 0.31% 12.66% - Estimated gross carrying amount at default 631.9 100.7 28.8 761.4 Expected credit loss 0.3 0.3 3.6 4.2 The Group did not recognise credit loss on its biggest individual clients (Allegro and Vinted) in the current reporting period or in the previous reporting period. Expected credit loss allowance based on the collective approach (excluding Allegro and Vinted): Balance as at 31-12-2024 31-12-2023 Rental deposits 5.4 2.2 Advance 1.9 2.3 Financial assets 7.3 4.5 Receivables from the State 248.5 215.1 Other 7.5 5.0 Non-financial assets 256.0 220.1 Total other receivables 263.3 224.6 235 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 26. Cash and cash equivalents 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. Balance as at 31-12-2024 31-12-2023 Cash in bank and on hand 772.3 565.2 Including cash in VAT accounts (restricted) 10.1 5.7 Total cash 772.3 565.2 Including in currency: 290.0 249.0 Cash in EUR, converted to PLN 92.0 17 7.1 Cash in GBP, converted to PLN 196.0 70.8 Cash in USD, converted to PLN 2.0 1.1 Cash in bank accounts meet the SPPI test and the business model test “held to collect”, so they are measured at amortised cost including an impairment loss determined in accordance with the expected credit loss model. The 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. The whole cash balance is classified to Stage 1 of the impairment model (i.e. the financial instruments that have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date). Rating Amount as at 31-12-2024 Amount as at 31-12-2023 Fitch Ratings Moody’s Investors Service Bank 1 AAA baa1 17.2 3.8 Bank 2 A+ n/a 397.6 329.6 Bank 3 AA- n/a 4.0 72.0 Bank 4 BBB- baa3 80.3 55.1 Bank 5 A A3 202.5 70.8 Bank 6 A- A3 36.1 25.3 Bank 7 AA- baa2 7.5 3.7 Bank 8 BBB- Baa2 3.9 0.5 Bank 9 A- A2 3.0 3.9 Bank 10 n/a n/a 0.1 0.2 Bank 11 n/a A1 20.0 - Total cash in bank 772.2 564.9 Cash at hand 0.1 0.3 Total cash in bank and at hand 772.3 565.2 236 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 27. Loans and borrowings Short term loans and borrowings consist of accrued interest and revolving facilities. Most loans and all bonds are paid as a lump sum on due date. Balance as at 31-12-2024 31-12-2023 Bank loans 268.4 33.1 Bonds 41.7 44.7 Loans secured by fixed assets 10.8 9.8 Total current liabilities 320.9 87.6 Bank loans 2,167.2 2,157.6 Bonds 2,572.7 2,600.7 Loans secured by fixed assets - 10.9 Total non-current liabilities 4,739.9 4,769.2 Total 5,060.8 4,856.8 Lenders Type Currency Agreement Purpose Additional information Interest rate Nominal value Carrying amount 2024 Due date Covenants Banks 15 Term facility PLN Agreement of 25-01-2021 IPO Facilities Agreement Not specified n/a WIBOR 1M + 2% PLN 1,950.0 m PLN 1,971.7 m 28.01.2026 Financial covenant under the senior facilities to maintain a maximum leverage ratio of 4.25× calculated based on definitions in the agreement Revolving facility WIBOR 1M + 2% PLN 63.2 m PLN 63.2 m SONIA 6M + 2% GBP 43.0 m PLN 228.6 m (GBP 44.4 m) WIBOR 1M + 1.5% PLN 100.0 m PLN 100.4 m Term loan GBP RBS Debt refinancing SONIA plus margin of 1.7% GBP 14.0 m (72.1 m PLN) 71.7 m PLN (GBP 13.9 m) 22.07.2025 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 PLN 2.097.9 m (EUR 490.9 m) 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 WIBOR 6M + 2.5% PLN 500.0 m PLN 516.5 m 29.07.2027 Consolidated Net Leverage Ratio max. 4.25x 15 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., Credit Agricole Bank Polska S.A. – Term Facility. InPost Group is obliged to comply with covenants twice a year on 30 June and 31 December. Collaterals for loans and borrowing are presented in Note 33.3 . The table below shows the details of loans and borrowings in 2024: The covenants for the above loans and borrowings were complied with during the reporting period ended 31 December, 2024 and 31 December, 2023. The sensitivity of Loans and Borrowings to changes in floating interest rates is presented in Note 37.1 . 237 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION Lenders Type Currency Agreement Purpose Additional information Interest rate Nominal value Carrying amount 2023 Due date Covenants Banks 16 Term facility PLN Agreement of 25-01-2021 IPO Facilities Agreement Not specified n/a WIBOR 1M + 2% PLN 1,950.0 m PLN 1,968.1 m 28.01.2026 Financial covenant under the senior facilities to maintain a maximum leverage ratio of 4.25× calculated based on definitions in the agreement Revolving facility WIBOR 1M + 2% PLN 0.1 m PLN 0.1 m SONIA 6M + 2% GBP 43.0 m PLN 222.5 m (GBP 44.5 m) 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 PLN 2,127.8 m (EUR 489.4 m) 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 WIBOR 6M + 2.5% PLN 500.0 m PLN 517.6 m 29.07.2027 Consolidated Net Leverage Ratio max. 4.25x 16 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., Credit Agricole Bank Polska S.A. – Term Facility. 27.1. Assets pledged as security for liabilities As of the financial year ended 31 December, 2024, and also for the financial year ended 31 December, 2023, the Group had no assets pledged nor securities for liabilities. The table below shows the details of loans and borrowings in 2023: 238 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 28. Reconciliation of movements of liabilities to cash flows arising from financing activities 31-12-2024 Loans and borrowings Lease liabilities Amount at the beginning of period 4,856.8 1,791.6 Proceeds from loans and borrowings 163.1 - Payment of principal portion of the lease liability - (976.3) Repayment of loans and credits (9.6) - Repayment of interest and commission on the loan (263.8) (89.7) Total changes from financing cash flows (110.3) (1,066.0) Lease additions: new leases and renewals for indefinite period - 1,400.6 Subsidiary acquisition 71.7 225.0 Interest cost 269.3 90.8 Contract termination and modifications - 268.3 Effect of changes in foreign exchange rates (26.7) (14.9) Total liability-related other changes 314.3 1,969.8 Amount at the end of the period 5,060.8 2,695.4 31-12-2023 Loans and borrowings Lease liabilities Amount at the beginning of period 5,055.9 1,643.6 Proceeds from loans and borrowings - - Payment of principal portion of the lease liability - (657.1) Repayment of loans and credits (24.3) - Repayment of interest and commission on the loan (302.3) (63.1) Total changes from financing cash flows (326.6) (720.2) Lease additions: new leases and renewals for indefinite period - 655.1 Interest cost 307.3 63.8 Contract termination and modifications - 245.0 Effect of changes in foreign exchange rates (179.8) (95.7) Total liability-related other changes 127.5 868.2 Amount at the end of the period 4,856.8 1,791.6 239 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29. Employee benefits and other provisions Accounting policy Defined benefit plan The Group’s obligation in respect of defined benefit plans (post-mortem severances and retirement benefits) 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. Performance bonuses and Cash Bonus Plan Members of the Management Board, Middle Management (performance bonuses), and other employees (Cash Bonus Plan) are eligible to receive an annual bonus in cash, subject to the achievement of certain pre-determined financial, strategic, and operational performance measures. Performance bonuses are based on the remuneration policy, determined by the Supervisory Board. The Group’s obligation in respect of those benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That liability is discounted to determine its present value. Remeasurements are recognised in profit or loss in the period in which they arise. The costs of the benefits are recognised on a straight-line basis over the respective duration of each programme. Liabilities for holidays and bonuses 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 a 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. Other provisions Other provisions include mainly: • litigations provision; • restructuring provision; • other provisions. 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 for the assessment of 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 regarding the possibility that the outcome of the litigation will be unfavourable for the Group, and recognises a relevant provision . Significant accounting estimates Defined benefit plan The carrying amount of the defined benefit liability, related to post-mortem severances and retirement benefits, 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 report 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.  240 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the purpose of determining employee benefits related to defined benefit obligations, the Group applied the projected unit credit method. The following were the principal actuarial assumptions at the reporting date : 31-12-2024 31-12-2023 Discount rate 5.9% 5.2% Future salary growth 5.6% for 2025 4.6% for 2024 2.7% for 2026 3.7% for 2025 2.5% for 2027 and beyond 2.5% for 2026 and beyond Cash Bonus Plan (CBP) The Group recognises other long- term employee benefits concerning the Cash Bonus Plan (CBP) for Managers. Under the CBP, members are eligible for a one-off cash payment based on their remuneration for the 12 months prior to Listing (which took place in 2021) and the multiple, which depends on the exit EBITDA of Poland, payable in three instalments. Full CBP participation is only possible if the employee is still employed by the Group at the payment date. Appropriate bad-leaver definitions and penalties apply if the person leaves the Group before the payment date. The last instalment of the plan was paid in April 2023.  31-12-2024 31-12-2023 Discount rate for CBP programme dated 2021 5.02% 5.18% The table below shows the hypothetical amounts of provisions (sensitivity analysis) for bonuses subject to changes in key assumptions: In January 2021, a new instance of the programme was announced, under which new CBP members are eligible for cash payments based on their remuneration and a multiple that depends on the Adjusted EBITDA of Poland segment for the year ended December 2023. Payments will be divided into three annual payments (2024, 2025, and 2026). An employee will be eligible to receive the payment if still employed at the time of payment. For the purpose of determining the provision for both of these employees’ awards, the Group applied the projected unit credit method. There was an assumption that there will be no rotation of employees eligible for the 2018 programme, as it is based on the 2023 Poland EBITDA; hence, all employees will receive the right to the payout after publication of these financial statements. The following were the principal actuarial assumptions at the reporting date: 31-12-2024 31-12-2023 Provision for Cash Bonus Plan 9.9 15.2 Discount rate -1% - 0.2 Discount rate -0.5% - 0.1 Discount rate +0.5% - (0.1) Discount rate +1% - (0.2) Forecasted EBITDA PLN -100 million - - Forecasted EBITDA PLN +100 million - - Provisions Movements The below table presents balances and movements of provisions during the year: Defined benefit plan Performance Bonuses and Cash Bonus Plan Provision for holidays and bonuses Other provisions Total Balance as at 31-12-2023 7.1 35.3 93.3 6.9 142.6 Recognition/creation - 30.6 134.6 2.1 167.3 Subsidiary acquisition - - - 5.0 5.0 Utilisation - (35.3) (93.3) (6.5) (135.1) Foreign exchange rate impact - - (1.1) - (1.1) Balance as at 31-12-2024 7.1 30.6 133.5 7.5 178.7 31-12-2024 31-12-2023 Long-term Short-term Long-term Short-term Post-mortem severance 0.9 0.1 0.7 0.1 Retirement benefit 6.1 - 6.3 - Unused holiday provision and bonuses 2.5 131.0 1.6 91.7 Performance bonuses - 20.7 - 20.1 Cash Bonus Plan 2.5 7.4 5.4 9.8 Total 12.0 159.2 14.0 121.7 Employee benefits The table below presents a summary of employee benefits: The Group is not party to any wage bargaining agreements or collective employment agreements. Short-term employee benefit liabilities are measured according to general principles. Long-term benefits are estimated using actuarial methods. 241 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30. Share-based payment Accounting policy The Group offers share-based programmes for employees and grants them shares in the Parent Company. All programmes (Management Incentive Plan, Long-Term Incentive Plan, and performance bonuses) are classified as equity-settled. Over the vesting period, the Group recognises the expense (payroll costs), with a corresponding increase in equity (other capital reserves) based on the grant date fair value of the programme. 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. Significant accounting estimates Depending on the plan, the allocation of rights to beneficiaries is subject to the following assumptions: Programme 31-12-2024 31-12-2023 Management Incentive Plan Exit date: Exit date: 2021 – 40% 2021 – 40% 2024 – 30% 2024 – 30% 2025 – 30% 2025 – 30% Attrition rate 50% Attrition rate 50% Long-Term Incentive Plan Group will achieve 100% of Target EBITDA Group will achieve 100% of Target EBITDA The table below shows the hypothetical amounts of expenses (sensitivity analysis) for share-based arrangements, subject to changes in key assumptions. 31-12-2024 31-12-2023 Management Incentive Plan 4.4 4.5 Exit date 1 year later (1.0) (1.0) Exit date 1 year earlier 2.2 2.2 Attrition rate +10% (1.0) (1.0) Attrition rate -10% 1.0 1.0 Long-Term Incentive Plan expenses recognised 72.5 34.4 Target EBITDA/EBIT realisation 92% (11.8) (10.1) Target EBITDA/EBIT realisation 109% 23.6 20.2 30.1. Earn-out agreement On 19 November, 2024 one of the shareholders (PPF Group) and the CEO of InPost Group have entered into earn-out agreement setting out the rules of incentives for the CEO resulting from any potential exit from the investment in InPost S.A. shares by PPF Group. The earnout is triggered only if PPF Group realizes at exit more than 2x of the PPF Group’s entry costs. In case this initial criterion is met, CEO shall be entitled to a percentage of any proceeds distributable to PPF Group. Share of the earn-out amount in the total exit proceeds received by PPF Group varies and becomes greater if the total cash-on-cash return and IRR extends the set levels. Additionally, the earn-out value varies depending on the time of the disinvestment made by PPF Group. In case no exit occurs prior to the expiry of the earn-out scheme, CEO can be entitled to an earn-out in case the initial criterion of cash- on-cash return greater than 2 is met. As earn-out agreement contains service conditions for CEO to remain in his role, PPF is InPost S.A. Shareholder and future cash payment will be based on InPost S.A. share price in the future criteria to recognize agreement under IFRS 2 as share-based payment has been met. Group has assessed - fair value of the incentive at the time of granting. Considering the fact that Exit by PPF is assessed as probable, the value of the grant will be recognised over the period of 66 months (until agreement expires) as cost of additional services received by the Group from the CEO on one hand and as equity increase received from the shareholder on the other. Nov-2024 Earn-out valuation parameters InPost S.A. share volatility (historical one year) 30% Risk free rate 2,53% InPost S.A. share price as of grant date 17,43 EUR Block discount 10% Exit dates 2028 - 10% 2029 - 85% 2030 - 5% Model used BSM formula and lattice model The expense recognised during the year is as follows: 31-12-2024 31-12-2023 Expense arising from Earn-out agreement 10.7 - Total expense 10.7 - 242 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.2. Management Incentive Plan The Management Incentive Plan is a legacy plan set up in 2018, whose grants ended in January 2021, before InPost S.A. IPO. The vesting period is dependent on “Exit”, which means the sale of shares by the major shareholder Advent International (which, before the IPO, was the sole shareholder) – of the granted shares, 40% vested in 2021, and a further 30% in 2024. As of the balance sheet date, the Management assumes that the remaining 30% of granted shares will vest by the end of 2025. The model of shares valuation of the Management Incentive Plan (MIP) did not change in 2024 in comparison to 2023. The grants under this Programme ended in January 2021, and no new grants are possible. Shares will be provided to entitled employees by the shareholder – this programme will not result in dilution or share buyback from the perspective of the Group. The Management has determined the fair value of shares granted based on the methods and parameters set out below: MIP 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) as of grant date 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 Risk-free interest rate 2.63 2.63 2.55 2.55 1.8 1.8 1.8 (0.01) (0.01) Volatility (%) 5.7 5.7 5.7 6.3 20 20 20 20 20 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 The following table presents the number and change in MIP shares during the year: 31-12-2024 31-12-2023 MIP shares granted MIP shares granted Outstanding at 1 January 1,054,759 1,054,759 Granted during the year - - Forfeited during the year - - Exercised during the year 527,379 - Expired during the year - - Outstanding but not exercisable at the end of the period 527,380 1,054,759 Weighted average exercise price during the period of 2024 was EUR 11.85 per share. The expense recognised during the year is as follows: 31-12-2024 31-12-2023 Expense arising from MIP 4.4 4.5 Total expense 4.4 4.5 243 LTIP valuation parameters 2024 2023 2022 2021 Fair value of LTIP share (EUR) as of grant date 14.45 8.09 5.34 15.90 Number of shares granted 726,714 1,077,538 1,410,901 360,068 Expiration date April 2027 April 2026 April 2025 April 2024 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.3. Long-Term Incentive Plan The conditions for the Long-Term Incentive Plan (LTIP) realisation are based on Target EBITDA in the last year of the programme. Depending on realisation, entitled employees may receive no shares (if Target EBITDA is below the minimum target) or receive between 50% and 200% of the shares. The conditions for the LTIP realisation changed in 2024, grants are based on Target EBIT realisation in the last year of the programme. The grant date, fair market value (FMV) at the grant date, service period, and vesting date for the LTIP are visualised below: SBP plan 31 Dec 2020 31 Dec 2021 31 Dec 2022 31 Dec 2023 31 Dec 2024 31 Dec 2025 31 Dec 2026 31 Dec 2027 As of 31 December, 2024, the assumption is also that no Managers will leave the Group before the shares vest. The shares that will vest under the plan will not have an exercise price. During the Annual General Meeting of Shareholders dated 19 May, 2022, it was decided that shares granted will be purchased from the Market by InPost S.A. or its subsidiaries when the programme is settled. The granted share value is calculated as the average price of InPost S.A. shares on Euronext stock exchange over the 60-day period prior to granting. 2021 - 2024 grant date FMV PLN 32.9 performance period vesting date 2022 - 2025 grant date FMV PLN 31.7 performance period vesting date 2023 - 2026 grant date FMV PLN 40.6 performance period vesting date 2024 - 2027 grant date FMV PLN 40.1 performance period vesting date The following table presents the number and change in LTIP shares during the year: 31-12-2024 31-12-2023 LTIP shares granted LTIP shares granted Outstanding at 1 January 2,966,663 1,765,355 Granted during the year 726,714 1,077,538 Forfeited during the year - - Exercised during the year 430,577 - Expired during the year 42,033 - Unvested during the year - - Performance adjustment 1,416,515 123,770 Outstanding but not exercisable at the end of the period 4,637,282 2,966,663 The expense recognised during the year is as follows: 31-12-2024 31-12-2023 LTIP 2021 3.2 14.2 LTIP 2022 44.5 10.5 LTIP 2023 13.7 9.7 LTIP 2024 11.1 - Total expense 72.5 34.4 The Management determined the value of shares granted based on the parameter set out below: 244 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.4. Performance bonuses Annual performance bonuses are partially paid in shares. Senior Management who are entitled to receive performance bonuses are divided into three groups: the 1st and 2nd group of participants will receive 50% and 33%, respectively, of their annual performance bonus in shares. Performance bonuses for the year 2023 that vested on 31 March, 2024 were settled in April 2024, and entitled employees received 190,944 shares, with a value of EUR 15.13 per share at settlement date. Shares did not and will not have an exercise price. Performance bonuses were settled using treasury shares. Performance bonuses valuation parameters Granted 31 March, 2024 Fair value of performance bonus shares (EUR) 14.29 Number of shares granted 183,783 Expiration date 31-03-2025 Fair value of shares was calculated as the average price of InPost S.A. shares on Euronext stock exchange over 60-day period prior to granting The following table presents the number and change in performance bonus shares during the year: 31-12-2024 31-12-2023 Performance bonus shares granted Performance bonus shares granted Outstanding at 1 January 195,627 214,357 Granted during the year 183,783 195,627 Forfeited during the year - - Exercised during the year 190,944 175,544 Expired during the year 4,683 38,813 Outstanding but not exercisable at the end of the period 183,783 195,627 31-12-2024 31-12-2023 Expense arising from performance bonuses paid in shares 13.4 7.8 Total expense 13.4 7.8 The expense recognised during the year is as follows: 245 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.5. Restricted Stock Units Newly hired senior managers are entitled to Restricted Stock Units (RSU). The programme was introduced in June 2024, settlement terms are agreed individually (between one month and three years). As of 31 December, 2024, the assumption is that no managers will leave the Group before the shares vest. The following table presents the number and change in RSU shares during the year: 31-12-2024 31-12-2023 RSU shares granted RSU shares granted Outstanding at 1 January - - Granted during the year 136,301 - Exercised during the year 29,401 - Expired during the year 17,450 - Outstanding but not exercisable at the end of the period 89,450 - The shares that will vest under the plan will not have an exercise price. Restricted Stock Units are settled using treasury shares. The expense recognised during the year is as follows: 31-12-2024 31-12-2023 Expense arising from RSU 3.9 - Total expense 3.9 - 31. Other liabilities Balance as at 31-12-2024 31-12-2023 Payroll liabilities 76.5 52.9 Liabilities to the State 139.2 97.0 Total current other liabilities (non- financial liabilities) 215.7 149.9 32. Trade and other payables Balance as at 31-12-2024 31-12-2023 Trade payables (to third parties) 1,501.1 931.8 Contract liability (prepaids) 21.3 18.7 Liabilities from the settlement of the cash-on-delivery option 24.4 16.8 Investment liabilities 78.7 65.2 Other 46.4 42.2 Other payables 170.8 142.9 Total trade and other liabilities (financial liabilities) 1,671.9 1,074.7 Terms and conditions of the above financial liabilities: • Trade payables are non- interest-bearing (unless in default) liabilities for the goods and services purchased in the course of ordinary business operations from suppliers 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. 246 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 33. Financial instruments Accounting policy 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 amounts of the long-term loans and borrowings are reasonable approximations of fair values (except for Loans and Borrowings with fixed interest rates); the fair value of borrowings which are at the variable rate is classified to the level 2 in fair value hierarchy. 33.1. The fair value of financial instruments Fair value hierarchy Fair value Carrying amount 31-12-2024 31-12-2023 31-12-2024 31-12-2023 Financial assets measured at fair value through profit or loss Short-term financial assets: IRS Significant observable inputs (Level 2) 17.8 7.9 17.8 7.9 Short-term financial assets: VPPA Significant observable inputs (Level 2) 0.5 - 0.5 - Long-term financial assets: convertible loans Significant unobservable inputs (Level 3) 128.7 - 128.7 - Financial assets not measured at fair value Short-term financial assets: loans Significant observable inputs (Level 2) 58.1 - 58.1 - Financial liabilities not measured at fair value Current borrowings Fixed-rate borrowing Significant observable inputs (Level 2) 47.1 47.9 47.1 47.9 Non-current borrowings Fixed-rate borrowing Significant observable inputs (Level 2) 1,865.0 1,786.9 2,050.8 2,079.8 The fair value of the borrowings based on fixed rates and financial assets is presented in the table below: There were no transfers between Level 1 and Level 2 during 2024. Description of valuation techniques used and key inputs to valuation of investment properties: Valuation technique Valuation method Significant observable inputs Short-term financial assets: IRS Income approach DCF method Discount rate Long-term financial assets: convertible loans Income approach DCF method Discount rate Short-term financial assets: loans Income approach DCF method Discount rate Fixed-rate borrowing Income approach DCF method Discount rate 247 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 33.2. Financial instruments by category Category under IFRS 9 Carrying amount 31-12-2024 31-12-2023 Financial assets not measured at fair value through profit or loss Trade receivables at amortised cost 1,692.4 1,215.3 Other receivables: current at amortised cost 4.5 4.5 Other receivables: non-current at amortised cost 44.1 26.6 Cash and cash equivalents at amortised cost 772.3 565.2 Short-term financial assets: loans and borrowings at amortised cost 58.1 - Financial assets measured at fair value through profit or loss Short-term financial assets: IRS at fair value through profit and loss 17.8 7.9 Short-term financial assets: VPPA at fair value through profit and loss 0.5 - Long-term financial assets: long-term loan at fair value through profit and loss 128.7 - Total financial assets 2,718.4 1,819.5 Category under IFRS 9 Carrying amount 31-12-2024 31-12-2023 Financial liabilities not measured at fair value Current loans and borrowings at amortised cost 320.9 87.6 Non-current loans and borrowings at amortised cost 4,739.9 4,769.2 Trade and other payables at amortised cost 1,650.6 1,056.0 Non-current lease liabilities outside of the scope of IFRS 9 1,720.6 1,127.4 Current lease liabilities outside of the scope of IFRS 9 974.8 664.2 Total financial liabilities 9,406.8 7,704.4 33.3. Guarantees and other securities As at 31 December, 2024, the total amount of granted bank guarantees on behalf of the companies from the Group amounted to PLN 162.9 m (as at 31 December, 2023, it amounted to PLN 142.9 m). Bank guarantees are a collateral for the obligations from contracts signed by the Group. They relate to warehouses rental agreements entirely and are required by landlords. 34. Contingent assets and liabilities The Group had no significant contingent assets and liabilities in the reporting period. 248 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / DISCLOSURES TO CONSOLIDATED STATEMENT OF FINANCIAL POSITION 35. Explanations to the Statement of cash flows 31-12-2024 31-12-2023 Change in trade and other receivables in the consolidated statement of financial position (533.3) (195.2) Subsidiary acquisition 438.9 - Trade and other receivables impairment losses (18.7) (9.6) Compensation of VAT returns with CIT liabilities 1.8 (12.6) Advances for materials for the production of parcel machines (included in investment flows) - 0.1 Exchange differences (12.0) 10.3 Other - 0.2 Change in trade and other receivables (123.3) (206.8) 31-12-2024 31-12-2023 Change in other assets in the consolidated statement of financial position (45.9) (13.9) Prepayments for materials used in the manufacture of automated parcel machines 0.6 5.4 Change in other assets (45.3) (8.5) 31-12-2024 31-12-2023 Change in trade payables and other payables in the consolidated statement of financial position 597.2 82.0 Subsidiary acquisition (516.2) - Change in liabilities due to capital expenditures (10.1) 30.9 Exchange differences (10.3) 7.1 Change in presentation for financial liabilities - 4.3 Change in trade payables and other payables 60.6 124.3 31-12-2024 31-12-2023 Change in employee benefits, provisions, and government grants in the consolidated statement of financial position 36.1 32.4 Subsidiary acquisition (5.0) - Other (3.9) - Change in employee benefits, provisions, and government grants 27.2 32.4 31-12-2024 31-12-2023 Change in other liabilities in the consolidated statement of financial position 65.8 13.1 Exchange differences (0.2) 0.2 Change in other liabilities 65.6 13.3 31-12-2024 31-12-2023 Total net finance cost 342.4 535.9 Foreign exchange differences realised on working capital (1.4) (28.5) Bank fees paid (3.0) (2.4) Penalty interest paid (4.1) (1.8) Interest received from bank deposits 12.0 4.0 Other (0.2) 0.2 Finance costs/(income) adjustment 345.7 507.4 249 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS 36. Share capital Group’s capital and risks Series Face value Number of shares as at 31-12-2024 Number of shares as at 31-12-2023 Ordinary shares EUR 0.01 each 500,000,000 500,000,000 500,000,000 500,000,000 Share premium and retained earnings are available to shareholders distribution. The following table presents the number and change in treasury shares: 31-12-2024 31-12-2023 Number of treasury shares at 1 January 182,500 358,044 Acquisition of treasury shares 2,800,000 - Treasury shares delivered (669,182) (175,544) Number of treasury shares at the end of the period 2,313,318 182,500 As at 31 December, 2024, InPost S.A. and its subsidiaries held 2,313,318 treasury shares, which will be used for the settlement of share-based programmes in the future. 37. Capital management The 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 capital of the Group comprises debt, including loans and borrowings (presented in Note 27), lease liabilities (presented in Note 23.2), and capital attributable to shareholders (including shares issued, capital reserve, and retained earnings). The Group monitors capital using a leverage ratio, which is a ratio of Net debt to Adjusted EBITDA. Net debt is defined and calculated as the total of Loans, Borrowings, and Other Financial Liabilities less Cash and Cash equivalents, less interest rate SWAP and less derivative assets. The Management aims to keep the leverage ratio below 4.0, with a goal ratio of 2.0. Leverage ratio is monitored four times a year, which includes an analysis of the cost of capital and respective risks associated with each source of the capital. The Group’s capital management also aims to ensure that the Group meets financial covenants attached to the interest-bearing loans and borrowings. (There have been no breaches in the presented periods). The Group’s Leverage ratios as at 31 December, 2024 and 31 December, 2023 were as follows: 31-12-2024 31-12-2023 Total loans and borrowings 5,060.8 4,856.8 Total other financial liabilities 2,695.4 1,791.6 Less: Cash and cash equivalents (772.3) (565.2) Less: Interest Rate SWAP (17.8) (7.9) Net debt 6,966.1 6,075.3 Adjusted EBITDA 3,648.4 2,733.1 Leverage 1.9x 2.2x 250 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS 37.1. Financial risk management objectives The Group’s operations are exposed to a variety of financial risks. The Management Board of the Parent is responsible for risk management by conducting ongoing analyses of financial risks and taking appropriate decisions in this regard. The Group’s risk management policy aims to minimise the potential impact of unfavourable financial risks on the financial results. Market risks: Currency risk The Group is exposed to currency risks resulting from transactions in various foreign currencies, predominantly EUR and GBP. The tables below present the exposure to currency risk, and a 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 sales forecasts and purchases. An analysis of sensitivity and exposure to currency risk in 2024 is presented in the table below: 2024 Carrying amount Amount exposed to risk GBP/PLN EUR/PLN Financial result after tax 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 772.3 290.0 5.9 (5.9) 14.1 (14.1) Trade receivables and other 1,955.7 1,046.7 29.6 (29.6) 53.1 (53.1) Other financial assets 205.1 186.8 15.1 (15.1) - - Trade liabilities and other payables 1,671.9 1,082.3 (41.8) 41.8 (45.6) 45.6 Loans and borrowings 5,060.8 4,370.3 (24.4) 24.4 (329.6) 329.6 Other financial liabilities 2,695.4 2,209.2 (30.5) 30.5 (148.5) 148.5 Total 12,361.2 9,185.3 (46.1) 46.1 (456.5) 456.5 2023 Carrying amount Amount exposed to risk GBP/PLN EUR/PLN Financial result after tax 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 565.2 249.0 5.7 (5.7) 14.3 (14.3) Trade receivables and other 1,439.9 622.7 7.3 (7.3) 41.7 (41.7) Trade liabilities and other payables 1,074.7 624.2 (7.7) 7.7 (42.9) 42.9 Loans and borrowings 4,856.8 4,318.5 (18.0) 18.0 (331.8) 331.8 Other financial liabilities 1,791.6 1,360.0 (9.6) 9.6 (100.6) 100.6 Total 9,728.2 7,174.4 (22.3) 22.3 (419.3) 419.3 An analysis of sensitivity and exposure to currency risk in 2023 is presented in the table below: Interest rate risk The interest rate risk arises on bank loans, bonds, leases, and loans granted by changing their future cash flows. The Group assesses the impact of interest rate fluctuations on profit and loss on an ongoing basis and adjusts the structure of debt instruments when necessary. Amounts of loans and borrowings exposed to risk are based on WIBOR and SONIA floating rates, which will be changed in the future following WIBOR reform in Poland. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. 251 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS An analysis of sensitivity and exposure to interest rate risk in 2024 is presented in the table below: 2024 Carrying amount Amount exposed to risk Change in financial result after tax Rate +1.0 pp Rate -1.0 pp Other financial assets: IRS 17.8 1,950.0 15.8 (15.8) Other financial assets: loans and borrowings 58.1 - - - Total financial assets 75.9 (1,950.0) 15.8 (15.8) Loans and borrowings 5,060.8 2,771.4 (22.4) 22.4 Total financial liabilities 5,060.8 2,771.4 (22.4) 22.4 An analysis of sensitivity and exposure to interest rate risk in 2023 is presented in the table below: 2023 Carrying amount Amount exposed to risk Change in financial result after tax Rate +1.0 pp Rate -1.0 pp Other financial assets: IRS 7.9 1,950.0 15.8 (15.8) Total financial assets 7.9 1,950.0 15.8 (15.8) Loans and borrowings 4,856.7 2,665.0 (21.6) 21.6 Total financial liabilities 4,856.7 2,665.0 (21.6) 21.6 Credit risk: Trade receivables The Group is exposed to a significant risk resulting from sales with deferred payment (from 14 to 90 days). The credit quality of each customer is assessed, and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables and contract assets are regularly monitored. 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 at each reporting date. The Group classifies, for individual assessment purposes, receivables that are past due for more than one year, as well as those that have other reasons to be fully written off (e.g. subject to legal proceedings, bankruptcy, etc.). For detailed information about the credit risk exposure on the Group’s trade receivables, please refer to Note 25. 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, 2024 and 31 December, 2023 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 26. Other financial assets: Loans The Group is exposed to credit risk associated with the loans granted. As part of M&A activities, the Group searches for potential companies to acquire or collaborate with to expand its operations in new or underdeveloped markets. Under investment agreements, the Group may provide loans to external companies, which are primarily non-interest-bearing loans with the option to convert into equity. In valuing these loans at fair value, the Group considers credit risk by including expected credit loss rate into overall discount rate, which is used to discount future cash flows to determine the current fair value of these loans. 252 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS Liquidity risk: 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 reputation. Additionally, the Group intends to maintain flexibility of financing under the available funds. The current cash flow enables the Group to settle its obligations in a timely manner as they arise. The Group also has access to a revolving borrowing facility of PLN 800.0 m. As at 31 December, 2024, the use of revolving loans amounted to PLN 392.2 m (222.6 m in 2023). Taking into account the positive cash flow and cash balance, the actual and planned results, the long-term nature of loans and liabilities (mainly related to leasing or purchase of fixed assets), and the 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 below are contractual undiscounted cash flows. 2024 <1 year 1–3 years 3–5 years >5 years Contractual cash flows total Carrying amount Variable interest 332.3 2,961.5 - - 3,293.8 2,962.9 Loans and borrowings 332.3 2,961.5 - - 3,293.8 2,962.9 Fixed interest 1,061.4 3,222.5 383.3 372.4 5,039.6 4,793.3 Loans and borrowings 47.1 2,188.0 - - 2,235.1 2,097.9 Leases 1,014.3 1,034.5 383.3 372.4 2,804.5 2,695.4 Non-interest-bearing 1,671.9 - - - 1,671.9 1,671.9 Trade and other payables 1,671.9 - - - 1,671.9 1,671.9 Total 3,065.6 6,184.0 383.3 372.4 10,005.3 9,428.1 2023 <1 year 1–3 years 3–5 years >5 years Contractual cash flows total Carrying amount Variable interest 228.7 2,472.9 545.8 - 3,247.4 2,729.0 Loans and borrowings 228.7 2,472.9 545.8 - 3,247.4 2,729.0 Fixed interest 736.8 762.2 2,518.5 163.0 4,180.5 3,919.4 Loans and borrowings 47.9 95.9 2,178.5 - 2,322.3 2,127.8 Leases 688.9 666.3 340.0 163.0 1,858.2 1,791.6 Non-interest-bearing 1,074.7 - - - 1,074.7 1,074.7 Trade and other payables 1,074.7 - - - 1,074.7 1,074.7 Total 2,040.2 3,235.1 3,064.3 163.0 8,502.6 7,723.1 253 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS 38. 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. All related-party transactions were made on terms equivalent to those that prevail in arm’s- length transactions. All transactions with related parties (Key Management personnel) are part of remuneration, subject to agreements between Key Management personnel and the Supervisory Board. Entity’s name (Key Management personnel) Transactions Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Purchases Consulting Services Marcin Pulchny - 0.5 F.H. Feniks Rafał Brzoska 1.6 1.7 FINSTRAT Adam Aleksandrowicz 0.3 1.1 FRANCISCO VAN ENGELEN SOUSA 1.2 - Lidar Management Dariusz Lipiński - 0.7 Total 3.1 4.0 Associates Transactions Balances Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 As a 31-12-2024 As a 31-12-2023 Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) and its subsidiaries Receivables - - 0.1 - Revenues 1.2 - - - Loan and related interest - - 58.1 - As at 31 December, 2024, outstanding balances of receivables and liabilities from related parties (Key Management personnel) amounted to nil. Transaction with the group listed above relates to linehaul services that Menzies Distribution Solutions Group Limited (before: M HOLDCO 2 Limited) performed for the Group since acquisition of M HOLDCO 1 Limited. The Group has not 38.1. Key personnel remuneration Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Management Board, of which: 42.4 31.6 Short-term employee benefits 10.0 11.3 Share-based compensation 32.4 20.3 Executive Committee, of which: - 6.1 Short-term employee benefits - 2.2 Share-based compensation - 3.9 Supervisory Board, of which: 2.4 2.7 Short-term employee benefits 2.4 2.7 Share-based compensation - - Total key personnel remuneration 44.8 40.4 *The Supervisory Board dissolved the Executive Committee in August 2023. Short-term employee benefits include all compensation: gross salaries, including the variable component, bonuses, attendance fees, and unused holiday compensation. Share-based compensation includes equity-settled plans: Management Incentive Plan (MIP), Long-Term Incentive Plan (LTIP), Restricted Stock Units (RSU), Earn-out agreement and performance bonuses. Apart from the transactions mentioned above, the Group is not aware of any other material transactions between the Group and Members of the Management Board, Executive Committee, or Supervisory Boards. recorded any other transactions and balances with related parties other than specified above. 254 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS 39. Employment structure The employment structure of the Group is as follows (total number of employees at the period end): 31-12-2024 31-12-2023 Management Board 3 3 Management 1,486 1,098 White-collar employees 3,992 3,716 Blue-collar employees 4,634 2,250 Total employment 10,115 7,067 The average number of staff employed by the Group during the financial year 2024, broken down by companies: Management White-collar employees Blue-collar employees InPost S.A. 3 - - Integer.pl S.A. 11 25 12 InPost Technology 21 203 - Integer France SAS - 4 - Mondial Relay SAS 37 996 1,331 InPost Sp. z o.o. 850 934 936 Locker InPost Italia Srl 29 82 - InPost UK Limited 36 108 - Integer Group Services Sp. z o.o. 245 1,339 218 M HOLDCO 1 Limited and its subsidiaries 76 200 1,178 Total employment 1,308 3,891 3,675 The companies excluded from the table above had no employees during the year 2024. 40. Auditors’ remuneration Period of 12 months ended 31-12-2024 Period of 12 months ended 31-12-2023 Fees for legal audit of consolidated financial statements and annual accounts 4.1 2.9 Fees for half-year review services 0.6 0.8 Other assurance services 0.6 0.6 CSRD other assurance services 1.0 - Total auditor’s remuneration 6.3 4.3 255 InPost Group Integrated Annual Report 2024 CONSOLIDATED FINANCIAL STATEMENTS OF INPOST GROUP FOR THE PERIOD OF 12 MONTHS ENDED ON 31 DECEMBER, 2024 (IN MILLIONS PLN) / GROUP’S CAPITAL AND RISKS 41. Events after the balance sheet date Luxembourg,27March,2025 Rafał Brzoska President oftheManagementBoard Francisco Javier van Engelen Sousa VicePresident oftheManagementBoard Michael Rouse VicePresident oftheManagementBoard 41.1. Change in debt refinancing On 3 March, 2025, InPost S.A. successfully refinanced its existing debt. The total financing increased from PLN 2,75 billion to PLN 4,20 bn. The structure of the debt includes a PLN 2,70 bn Revolving Credit Facility (RCF), up from PLN 0,80 bn previously, and a PLN 1,50 bn Term Loan, replacing the previous term loan of PLN 1,95 bn. The financing is for a 5-year term with two optional 1-year extensions for the RCF. The margin depends on Group leverage and is currently 1.5% plus a floating interest rate based on WIBOR 3M or 6M. The financing structure includes a Sustainability- Linked Loan mechanism to be launched within 12 months. Overall refinancing was conducted on more favourable conditions compared to the previous loan. 41.2. Convertible loans After the balance sheet date, InPost extended additional convertible loans to Judge Logistics Limited under terms similar to those described in Note 20, consistent with its business strategy. InPost is currently evaluating the accounting impact of these new arrangements. These arrangements will be accounted for in the consolidated financial statements for 2025.