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MTAC. FINANCIAL UPDATE. Mailers’ Technical Advisory Committee Meeting April 29, 2009. J. Corbett Chief Financial Officer & Executive Vice President. Economy-Business Impact. *Mailing Services Only. **In Millions. Global Insight's Baseline Forecasts for FY 2009. Jan-08. Aug-08. Dec-08.
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MTAC FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting April 29, 2009 J. Corbett Chief Financial Officer & Executive Vice President
*Mailing Services Only **In Millions Global Insight's Baseline Forecasts for FY 2009 Jan-08 Aug-08 Dec-08 Mar-09 Apr-09 GDP 2.3% 0.7% -1.7% -3.2% -3.0% Retail Sales 1.4% -1.6% -7.5% -9.9% -9.3% Employment 1.1% -0.6% -2.2% -3.8% -3.9% Investment 1.7% -3.8% -16.4% -21.5% -21.2% CPI-U 1.4% 4.1% -1.1% -1.2% -0.8% Rate Assumptions* 2.9% 4.8% 3.8% 3.8% 3.8% USPS Volume** 205,265 194,528 189,571 180,000 180,000
February YTD FY 2009 SPLY Financial Results Revenue $2.8 Billion Below SPLY Expenses $0.8 Billion Below SPLY Net Income$2.0 BillionBelow SPLY * Numbers may not add due to rounding
$30,214 $33,041 [-$2,828] [-8.6%] Revenue 32,011 32,784 -773 -2.4% Expense -$ 1,797 $ 258 [-$2,055] [-797.4%] Net Loss February YTD FY 2009 Financial Results Actual SPLY Var %SPLY Mail Volume (%SPLY): -12.1% [ ] = Unfavorable variance to Plan/SPLY Numbers may not add due to rounding (Data in Millions)
February YTD FY 2009 Expense by Category ($ in Billions) % SPLY (1.6%) (7.2%) (3.7%)
March Expectations No significant change in economic forecast resulting in continued revenue and volume declines USPS continues to aggressively manage the business Variable workhours declining to partially offset revenue declines
Quarterly Volume - % SPLY * FY 2009 *Preliminary FY 2008
% SPLY First-Class Mail Volume * FY 2009 FY 2006 FY 2007 FY 2008 8 Quarter Moving Average Growth Rates *Preliminary
% SPLY Standard Mail Volume * FY 2006 FY 2007 FY 2008 FY 2009 8 Quarter Moving Average Growth Rates *Preliminary
% SPLY Periodicals Volume * FY 2009 FY 2006 FY 2007 FY 2008 8 Quarter Moving Average Growth Rates *Preliminary
We N WE NEED YOUR HELP!
Issue Postal Service received Significant Deficiency from external auditor for ineffective financial controls pertaining to Business Mail Acceptance Timely recognition of revenue Customer trust balances Incomplete postage statements Mailer USPS
Progress to DateCompletion of Postage Statements 10 20 30 40 50 60 70 80 90 Target Pass Rate 17
SOX and the Role of Our Customers Do not present a mailing with a hard copy postage statement if you submitted one electronically Ensure all sections of postage statements are correct after making changes Verify permit number on the mail matches the postage statement Check that mailing fees and authorizations such as Non-profit are current
SOX and the Role of Our Customers Provide the required documentation to support the rates claimed on the postage statement Update your mailer profile and ensure your permit is valid Keep your business account active After 2 years of non-activity your account will expire If you are a publisher - Make sure you file your Statement of Ownership in October Communication is the key – Ask the BMEU for assistance if needed
FINANCIAL UPDATE MTAC Mailers’ Technical Advisory Committee Meeting April 28, 2009 J. Corbett Chief Financial Officer & Executive Vice President