UPS Medical Drone Service

Saving Time | Saving Money | Saving Lives

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

After years of investing, testing and research –UPS is proud to offer U.S. Medical Drone Service

2UPS Medical Drone Service

Emergency Medical

Drone Service

Rwanda

Transportation of postpartum

emergency blood transfusions.

UPS/Zipline

Residential Drone

Delivery Test

Lithia, FL

Test drone delivery within

day-to-day home delivery

operations.

UPS/Workhorse

UPS Medical Drone ServiceAchieved the first commercial revenue flight in U.S. history

U.S. Distributed Healthcare Systems

We see significant potential to improve turnaround time, drive

consolidation across facilities for lab and pharmacy services, and

to decrease waste associated with overstocking supplies by

enabling centralized, just in time inventory management.

UPS/Matternet

‘17‘16 ‘19

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Matternet is a technology company that manufactures drones and builds unmanned aerial systems (UAS)

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Unmanned Aerial Vehicle (UAV)Quadcopter weighing 20 lbs. that can carry payloads up to 5.

22 mph cruise speed with a max distance of 12 miles.

Matternet Drone StationA temperature controlled receptacle that stands 12 ft. tall,

designed to keep users safe when flights are fully autonomous.

Unmanned Aerial System (UAS) Drone aviation software and UX platforms built on Matternet’s

secure cloud infrastructure.

UPS Medical Drone Service

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 4Medical Drone Delivery VIDEO

TWO MINUTE VIDEOKevin will provide voice over.Audio is not necessary but if available, there is a soft beat playing in the background.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 5

UPS Medical Drone Service

Patient visit

Specimen collection

Nurse loads specimens into

drone payload box

Central Lab

Payload hand delivered to

lab accessioning dept.

Specimens tested

Patient results reported

Outpatient Clinic

Payload is hand carried

to the launch point

Drone is loaded by a

UPS Technician

Remote Pilot In Command

(RPIC) approves launch &

monitors flight

Drone is unloaded by a

UPS Technician

Payload box is carried to

the hospital’s lab

Providing distributed healthcare systems with greater logistics speed and predictability

WakeMed Hospital Example: Reduced transportation of specimens from up to 2.5 hours, down to 3 minutes!

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2

3 4

5

UP TO

2.5 HOURS

3 MIN

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Sample Visual Line of Site (VLOS) Flight Path

Expanding to 10 healthcare systems in 2020

6UPS Medical Drone Service

~150 meters

Blood specimens

Up to 20 flights per day

Safe Operating Envelope (SOE)

Set of limits and conditions within which the system must be operated to ensure conformance with the safety

analysis upon which the operation is licensed and which can be monitored by or on behalf of the operator.

Operations

Dedicated launch & landing zones

On-site flight crew

UAV equipment storage

Pre-validated flight paths

UAV 22 mph cruise speed

UAV carries up to 5 lbs.

U.S. accident reporting

requirements

Weather

Max wind, 17.9 mph

Max gusts, 26.84 mph

No visible moisture

No thunderstorms within

12.4 miles

Cloud ceiling, 500’ above

cruising altitude

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Service Providers

FAA/DOT Use Cases

Medical Drone

Delivery

Emergency Response

Aircraft Inspection

Public Safety

Media Reporting

Border Protection

Agriculture

Insect Control

UPS is pursuing a commercial drone delivery license that will enable drone service in more robust ways

Not an all inclusive list, some companies remain anonymous.

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A 2017 presidential directive called on the

FAA and DOT to test drone operations

among various companies and a range of

use cases.

FAA/DOT responded with the Integration

Pilot Program (IPP) to determine how and

where UAV could safely be commercialized.

Compared to others seeking a license for

drone delivery, only UPS has experience

safely operating an airline, which is a

FAA preference.

The FAA plans to issue commercial

drone delivery licenses before Oct. 2020.

Drone Manufacturers

IPP Participants

UPS Medical Drone Service

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 8

What if medical drone service could help you…

Reduce Logistics CostSatisfy your most expensive stat deliveries with

unmanned aerial systems.

Increase Delivery SpeedOvercome ground congestion with an on-demand

drone service that is ready when you are.

Improve Turnaround TimeReduce the size of batches and increase the flow of

accessioning with high-frequency drone delivery.

Consolidate Labs or PharmaciesTightly integrate facilities to centralize operations,

increasing production with less overhead.

Reduce Medical Supply WasteReduce unused medical waste with drone enabled

just in time inventory management.

On average, stat deliveries can represent 30% of a hospital’s courier expense.

Each year U.S. traffic congestion can add up to 170 hrs. of travel time per driver.

Annual operating costs of a lab are in the range of $1 million.

An estimated $765 billion of medical supplies are wasted each year.

Five minutes of turnaround time saved, can add bed capacity for 256 ED patients.

Source: UPS same-day courier analysis

Source: TomTom Traffic Index

Source: National Academy of Medicine

Source: DovePress, Open Access Emergency Medicine

Source: CapTodayOnline

UPS Medical Drone Service

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 9

Enable faster, smarter, more efficient supply chains

Plan UAV logistics

Learn from usersEnhance patient care

Identify use cases

UPS Medical Drone Service

UPS Global Product Innovation

Kevin Wasik

Kwasik@ups.comM: 201-247-5051