Northeast Area Effective Communications®

Communication

Employee Wellbeing

OSHA II

Northeast Area 5.56 +10.6% #2

FY 15 YTD 2.82 -42.6% #1

Recordable 203 vs. 368 -165

Motor Vehicle

Northeast Area 3,331+589 +21.5%

FY 15 YTD 231 -35 -13.2%

Voice of the Employee

VOE

Northeast Area 63.85+1.25 +2%

Question Breakdown

_+ _0_ _-_

Northeast Area 29 2 2

Voice of the Employee

Areas We Focus On NEA

• Supervisor Communication +2• Information Regarding Safety +2• Physical Working Conditions +1• Results of Survey are Shared -1• Knowledgeable of Current Business Conditions -5• Results of This Survey will be Used to Improve the USPS +2• Understand Products/Services +1

New VOE Questions

The Customer Experience

Retail Customer Experience

Northeast FY 15 YTD

Overall 92.90 95.10

WTIL 88.20 90.30

Hazmat 94.29 100

Promotions & Merchandise 97.50 98.60

Image 96.80 96.80

Northeast Area

Improve the Customer Experience

Improve the Customer Experience

Customer Insights Measurement- Corporate Goal- 82.5%

40%

20%

20%

20%

Service Performance

Service Performance

Northeast FY 15

First-Class Composite 94.29 94.80

Priority Composite 87.53 92.11

Standard Composite 85.85 85.95

Scanning 95.07 95.51

Parcel Select 99.66 99.63

Amazon 99.84 99.84

Service Performance

Scanning Performance

Northeast FY 15

Acceptance Scan 92.27 95.41

Originating Enroute 88.40 91.88

Destinating Enroute 89.80 90.51

AAU Scan 98.70 97.95

Stop the Clock 99.27 98.43

ADE Scan 98.85 97.34

Total 95.08 95.51

Productivity and Financial Performance

Productivity and Financial Performance

Northeast

Commercial 5,066,334 -105,188

Revenue

Retail Revenue 2,736,019 +88,193

Total Revenue 7,862,958 +20,590

vs. SPLY +141,926

Outreach Program

Outreach Programs

Northeast FY 15 YTD

EDDM $21,138,619 $2,397,765

Business Connect $47,755,654 $3,073,394

Customer Connect $20,630,011 $486,412

Clerks Care $6,855,316 $546,435

Rural Reach $3,139,007 $103,995

$78,379,988 $4,210,236

Package Revenue $86,856,017 +28%

PC Postage $119,107,914 +20%

NEA Work Hour Performance

Northeast FY 15 YTD

TOE $8.5B / +84M / +1.0%

S&B $6.9B / +62 M / +.9% $-6,327m

Total Hours +1,378,461 -9,563

F-1 +105,896 -18,281

F-2B +472,660 +29,355

F-4 +592,880 -13,276

Total O/T % 11.46% 10.80%

F-1 9.54% 9.87%

F-2B 15.13% 13.51%

F-4 11.16% 11.26%

Volume Trend 2013 – FY 2015

2013 2014 Forecast 2015 Prelim IFP0.0

20,000.0

40,000.0

60,000.0

80,000.0

100,000.0

120,000.0

140,000.0

160,000.0

180,000.0

65,754.6 63,208.9 60,327.4

80,890.6 80,885.9 81,337.9

7,044.9 6,523.8 6,184.7

3,715.1 4,060.1 4,552.9

First-Class Standard Periodicals & Other Ship Svcs & Pkgs International

Pie

ces

- B

illio

ns

-1.7% -1.5%

0.0%

-3.9%

+0.6%

-4.6%

158.3 155.6 153.3 +12.1%+9.3%

-7.4% -5.2%

* FY13 total revenue excludes $1.3B reduction in Deferred Revenue – Prepaid Postage

2013 2014 Forecast 2015 Prelim IFP $-

$10,000.0

$20,000.0

$30,000.0

$40,000.0

$50,000.0

$60,000.0

$70,000.0

$28,110.7 $28,114.9 $27,320.1

$16,914.9 $17.6 $18,195.8

$5,388.1 $5.2 $5,184.1

$12,597.3 $14.0 $15,649.5

$3,015.1$2,977.9 $3,065.4

First-Class Standard Periodicals & Other Ship Svcs & Pkgs International

$ B

illio

ns

+2.9%$66.0 * $67.9 +2.1%

+4.1%

+10.8%

-1.2%

-2.9%

+3.3%

+12.1%

+2.9%

+0.0%

-2.3% -1.6%

$69.4

Revenue Trend 2013 – FY 2015

NEA – Total On-Hand by WeekOCT ’14 – JAN ‘15

PeakSeason

Fall MailingSeason

ColumbusDay Veteran’s

Day

Thanksgiving“Black Friday”

ChristmasDay

PostNew Year’s

ElectionDay

MLKHoliday

NEA – FCM On-Hand by WeekOCT ’14 – JAN ‘15

PeakSeason

Fall MailingSeason

ColumbusDay

Veteran’sDay

Thanksgiving“Black Friday”

ChristmasDay

PostNew Year’s

ElectionDay

MLKHoliday

NEA – PER On-Hand by WeekOCT ’14 – JAN ‘15

PeakSeason

Fall MailingSeason

ColumbusDay

Veteran’sDay

Thanksgiving“Black Friday”

ChristmasDay

PostNew Year’s

ElectionDay

MLKHoliday

NEA – STD On-Hand by WeekOCT ’14 – JAN ‘15

PeakSeason

Fall MailingSeason

ColumbusDay

Thanksgiving“Black Friday”

ChristmasDay

PostNew Year’s

MLKHoliday

ElectionDay

Veteran’sDay

NEA – Total On-Hand by WeekOCT ’14 – JAN ‘15

PeakSeason

Fall MailingSeason

ColumbusDay Veteran’s

Day

Thanksgiving“Black Friday”

ChristmasDay

PostNew Year’s

ElectionDay

MLKHoliday

This is Our Time!

We must instill service confidence now in order to ensure future growth with our business partners

Excellence in Peak Performance will provide the impetus for growth in January around Dimensional Weight and Heavy Weight packages

Peak Season – Setting the Stage

22

Package Forecast – Peak Season

Amazon + 30% over current volume

UPS + 6% over current volume

FedEx + 8% over current volume

Priority Mail + 11.9% over current volume

Total Shipping & Package Services + 15%

First-Class Packages + 24% over current volume

Package Projections

23

Key Customer Requirements

100% Visibility Scanning is vital to our customers Every missed scan leads to a potential call center

complaint

On-time delivery

Timely response and resolution to all customer inquiries

Consistent communication about potential national and local network issues

Peak Season

24

Summary

Peak season is the key to our future package growth success

Excellent Peak Performance = Growth

Average Peak Performance = Lost Opportunity

Peak Season

25

Northeast Area Effective Communications®

Communication