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NATIONAL

NATIONAL. Thank You for Your Business. We Are The US Postal Service. Connecting Communities and Propelling American Commerce for More than 240 years. 155M. 630K. 31K. 215K. 287. Delivery Points. Employees. Post Offices. Vehicles. Processing Centers. Mailing Ecosystem.

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NATIONAL

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  1. NATIONAL

  2. Thank You for Your Business

  3. We Are The US Postal Service Connecting Communities and Propelling American Commerce for More than 240 years 155M 630K 31K 215K 287 Delivery Points Employees Post Offices Vehicles Processing Centers

  4. Mailing Ecosystem

  5. Strengths and Challenges • STRENGTHS $ Product Pricing Innovation People Network • CHALLENGES

  6. July 2016 YTD (10 Months) 1 - Change in Accounting Estimate is excluded from Total Revenue. 2 - Temporary exigent surcharge expired April 10, 2016. Estimated exigent revenue earned in April 2016 was immaterial. 3 - Before RHB pre-funding, non-cash adjustments to workers’ compensation liabilities and FERS unfunded liability amortization, which are excluded from controllable expenses. 4 - July YTD FY2016 has 1.5 less retail days and same number of delivery days as compared to FY2015. 5 - Newly available data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

  7. Volume: FY2016 July YTD vs. SPLY

  8. Shipping & Package Volume: FY2016 July YTD vs. SPLY

  9. Total Liabilities, Including Retirement Obligations, Exceed Assets by $101B As of September 30, 2015 Note: This slide includes all assets and liabilities of pension and post-retirement health benefits obligations. Items highlighted in yellow are not shown on our balance sheet and the RHB obligation are valued under actuarial funding basis as of September 30, 2015 .

  10. Legislative Proposal Key StakeholderSupport Reinstate Exigent Price Increase (4.3%) Legislative Platform Medicare Integration Expanded ProductOfferings Postal-specific Economic Assumptions

  11. Balanced Approach Operational Efficiency Growth Favorable Outcome of PRC 10-year Review

  12. Adapting to a Changing Marketplace

  13. Competing for Peoples’ Time & Attention PREFER INFORMATION CUSTOMIZED TO THEIR LOCATION CONSULT PHONE WHILE IN STORE CHECK OUR PHONES

  14. Autonomous Vehicles Sharing Economy Augmented Reality Constantly Connected

  15. On-Demand, Convenient, Connected Hey Alexa!

  16. Competition at the Last Mile Crowd Sourcing Regional Carriers

  17. USPS is Adapting to Customers’ Needs PostalPro™:New Info Source for Commercial Mailers Simplified Self-Service & On-the-go Solutions Enhanced Product Tracking & Visibility Mail as Part of Daily Digital Routine

  18. Personalized & Relevant Variable Printing Technology Multi-layered Campaigns SeamlesslyLink to Other Channels

  19. The Power of Political Mail ESTIMATEDELECTION SPEND FOR 2016 USPS GOAL FOR 2016 ELECTIONS Media Channel Integration Deliver Right Messageto Right Personat Right Time Personalized Mail Pieces To Grab Voters’ Attention

  20. Future-Ready Strategy Deliver World-ClassCustomer Experience Equip, Engage & Empower USPS Employees Innovate to Deliver Value Invest in Our Future Easier to do Business with USPS Employee Empowerment Tools Informed Visibility Infrastructure Investing In Our Employees Premier Experience for Business Mailers Informed Delivery Digitally Integrated Future of Delivery

  21. We ALL Own the Customer Experience Customer Centric

  22. Streamlined Mail Entry Initiatives Frictionless Experience for Enhanced Customer Value Full Service, eInduction, Seamless Acceptance Premier BMEU as Your New Business Solutions Center Payment Modernization • Continued adoption • Reduced costs • Increased efficiency • Improved feedback • Commercial customers securely pay for services using one online account • Mailing tools and resources • One-stop solution • Solicit customer feedback

  23. Value of PCC Network PCC Advisory Key Initiatives National PCC Week PCC Publication 286 PCC Insider PCC Cafes and Educational Workshops Social Media PCC Events and Meetings Private and Public Access New PCC Portal Access (Demo) Visit beta.postalpro.com/pcc-portal

  24. EnhancedHardcopy Mail Preview of Incoming Mail The Extended Experience Bringing Your Mail and Packages onto Consumer Smartphones and Devices

  25. THANK YOU Mark Your Calendars for 2017 PCC Week September 25-29, 2017

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