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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE). Press Event February 6, 2013. Subtitle (20pt. Arial, Bold, Title Case). FOOTER (10PT. ARIAL, BOLD, GREY, CAPS). Today’s Announcement. New Delivery Schedule. Adapting to America’s Changing Mailing Habits.

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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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  1. TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE) Press Event February 6, 2013 Subtitle (20pt. Arial, Bold, Title Case) FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

  2. Today’s Announcement New Delivery Schedule

  3. Adapting to America’s Changing Mailing Habits First-Class, Single-Piece Volumes 37% Decrease since 2007 Volume in Billions of Pieces

  4. $15.9B loss in FY2012 • $11.1B default in FY2012 to the United States Treasury for Retiree Health Benefits • $15B borrowing authority exhausted • Liquidity very low Ongoing Financial Challenges

  5. Reduced career workforce by 193,000 positions – without layoffs • Reduced annual cost base by $15B • Consolidated more than 200 mail processing facilities Aggressive Cost Reduction Since 2006

  6. Changes to Mail Delivery • New Delivery Schedule • Six Days of Package Delivery • Five Days of Mail Delivery • Begins the week of August 5, 2013 6

  7. New Delivery Schedule Components • Post Offices (P.O.) • Post Offices remain open on Saturdays • Mail delivered to P.O. Boxes on Saturdays • Mail Delivery • Monday – Friday mail delivery service • Package Delivery • Monday – Saturday package delivery service continues

  8. Package Business Growth Rising Demand for Package Delivery Driven by eCommerce Growth

  9. Survey Research: Five-Day Mail Delivery Seven out of Ten Americans Support a Five-Day Mail and Package Delivery Schedule Higher support likely with six days of package delivery Sources: Gallup Poll, March 26, 2010 ● New York Times/CBS News, June 27, 2012 ● USA Today, March 17, 2010 ● Washington Post, March 30, 2010

  10. Residential Customers Preparation and Timing Employees Business Mailers Our Commitment

  11. Approximately $2B in annual cost reduction • Reduction of approximately 45 million • Work hours annually New Delivery Schedule: Projected Cost Reduction

  12. Timeline Week of August 5 Implementation of new delivery schedule March Release detailed implementation plan March - August Webinars/outreach with business mailers Feb Mar Apr May June July Aug March - August Customer communication Feb. 6 Initial notification of new delivery schedule

  13. Conclusion

  14. TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE) Subtitle (20pt. Arial, Bold, Title Case) FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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