1. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union The Changing World of the Posts : the future of the UPU Ken McKeown Universal Postal Union

2. Titre de la diapositive The Universal Postal Union Founded in Berne in 1874 1874 » 22 member countries 2007 » 191 member countries United Nations specialized agency specialized agency since 1948 Universal Postal Union © UPU 2007 – All rights reserved

3. Titre de la diapositive The worldwide postal network 431 billion letters 6 billion parcels 5.5 million employees Millions more jobs in related industries related industries More than 665,000 post offices post offices More than 82.7% of traffic comes from traffic comes from 28 industrialized 28 industrialized countries countries Universal Postal Union © UPU 2007 – All rights reserved

4. Titre de la diapositive Merging three networksPhysicalFinancialElectronic The worldwide postal network offers a natural gateway to the information society Universal Postal Union © UPU 2007 – All rights reserved

5. Titre de la diapositive Activities The UPU plays a role in: Regulating worldwide traffic of international mail of international mail Establishing quality-of-service standards standards Establishing technical standards standards Maintaining a system for compensating countries compensating countries Universal Postal Union © UPU 2007 – All rights reserved

6. Titre de la diapositive Activities But also in: Promoting the development of modern products and services modern products and services Monitoring market trends Promoting international cooperation and technical cooperation and technical assistance assistance Fostering a dialogue among all postal sector players all postal sector players Universal Postal Union © UPU 2007 – All rights reserved

7. Titre de la diapositive Structure Universal Postal Union © UPU 2007 – All rights reserved Universal Postal Congress 191 member countries Universal Postal Congress 191 member countries Council of Administration 41 member countries Council of Administration 41 member countries Postal Operations Council 40 member countries Postal Operations Council 40 member countries International Bureau 220 staff International Bureau 220 staff Consultative Committee 25 members Consultative Committee 25 members

8. Titre de la diapositive A global forum The only organization that can represent all postal sector players 191 member countries Governments Public postal operators Regulators Consultative Committee External stakeholders Universal Postal Union © UPU 2007 – All rights reserved

9. Titre de la diapositive A global forum Consultative Committee newest UPU body a voice for postal stakeholders non-governmental members Interest in international postal services postal services Universal Postal Union © UPU 2007 – All rights reserved

10. Titre de la diapositive UPU Congress Makes rules Sets policy Develops strategy Universal Postal Union © UPU 2007 – All rights reserved

11. Titre de la diapositive World Postal Strategy The Bucharest World Postal Strategy The 5 objectives focus on: Universal postal service Quality of service Market knowledge and customer needs Postal reform and sustainable development Cooperation and interaction with industry stakeholders Universal Postal Union © UPU 2007 – All rights reserved

12. Titre de la diapositive Objective 1: Universal postal service Accessible and affordable postal services for all Universal Postal Union © UPU 2007 – All rights reserved

13. Titre de la diapositive Objective 2: Quality of service Delivery of mail and provision of other services: On time Regularly Safely and securely At reasonable prices Universal Postal Union © UPU 2007– All rights reserved

14. Titre de la diapositive Objective 3: Market knowledge and customer needs Monitor market trends Broaden market knowledge Introduce new products and services and services Capitalize on growth areas e.g. direct mail, areas e.g. direct mail, postal financial postal financial services and e-commerce services and e-commerce Universal Postal Union © UPU 2007 – All rights reserved

15. Titre de la diapositive Objective 4: Postal reform and sustainable development Modernize postal structures and processes processes Transform Posts into competitive customer- competitive customer- oriented businesses oriented businesses Human resource development development Environmental awareness Universal Postal Union © UPU 2007 – All rights reserved

16. Titre de la diapositive Objective 5: Cooperation and interaction with industry stakeholders Create a global forum for constructive dialogue and cooperation dialogue and cooperation Share information and know-how know-how Contribute to the development of the development of the entire postal sector entire postal sector Universal Postal Union © UPU 2007 – All rights reserved

17. Titre de la diapositive Postal Letter Services Today A few key figures...

18. Titre de la diapositive Access to postal services (estimates by region, 2005)  82% of world population benefits from home mail deliveries  3% lacks postal services  Mail deliveries to post office boxes are mainly made in Africa and Arab countries

19. Titre de la diapositive Post offices (estimates by region, 2005)  Africa  Latin America and Caribbean  Asia and Pacific  Europe and CIS  Arab countries  Industrialized countries 0.5 % -0.1 % 1.0 % 0.3 % 1.9 % -0.8 % Variation 2004-2005 Globally, each permanent office covers an average of 204 km 2 and servesan average population of 9,696

20. Titre de la diapositive Postal revenue Global revenue : 180.9 billion SDR ($US270bn) (world estimates, 2005)  The letter post generates 60% of operating revenue, 4% more than in 2004  Rose by 3.3% between 2004 and 2005  Growth in 68.5% of the countries of the world Breakdown of revenue by product

21. Titre de la diapositive Letter post 437.1 Total traffic: 437.1 billion items 2004-2005: +0.4% 431.5 431.5 billion items (98.7% of total ) Domestic service 2004-2005: +0.4% 5.6 5.6 billion items (1.3% of total) International service 2004-2005: -2.5% (world estimates, 2005)

22. Titre de la diapositive Letter post  Domestic service  International service Average annual variation 3.4 % -0.2 % 0.3 % -1.4 % -0.2 % -5.3 % 1980-1990 1990-2000 2000-2005 2004-2005 (world estimates) 0.4 % -2.5 % Domestic volumes rose in 2005 The international service continues to decline

23. Titre de la diapositive Letter post, domestic service  Africa  Latin America and Caribbean  Asia and Pacific  Europe and CIS  Arab countries  Industrialized countries (estimates by region, 2005) -1.9 % 5.8 % -5.5 % -1.1 % 3.0 % 1.1 % Variation 2004-2005 % of countries experiencing growth 30.2 % 78.6 % 71.4 % 66.7 % 71.4 % 62.5 % 62% Growth in 62% of the countries of the world (57% in 2004)

24. Titre de la diapositive Number of letter-post items posted per capita, 2005 67.7 (68.3 in 2004) World average: 67.7 (68.3 in 2004) 18.9 3.0 406.5 4.7 37.0 12.6

25. Titre de la diapositive Advertising items  Almost 60% of member countries offer an advertising mail service in their domestic service  On average around the world, advertising items represent (regional estimates, 2005) % of member countries offering an advertising mail service 37.7% of letter-post items in the domestic service 11.5% of letter-post items in the international service

26. Titre de la diapositive Ordinary parcels  Domestic service  International service Average annual variation 4.3 % -0.2 % 4.1% -4.0% 4.4 % 4.2 % 1980-90 1990-2000 2000-05 2004-05 (world estimates) 10.9 % 3.4 % Worldwide volumes of postal parcels reached record levels in 2005

27. Titre de la diapositive Postal Letter Services Predictions for 2012 A few key insights from our member states...

28. Titre de la diapositiveProducts Annual Average Growth Rate 2006-2012 Letters - Domestic 0.78% Letters - International 0.26% Dynamic changes in volumes by product Predictions of member states

29. Titre de la diapositive Dynamic changes in volumes by product Q1 Dynamic Changes in Volumes of Traffic by Products - Designated Operators -4% -2% 0% 2% 4% -4%-2%0%2%4% Annual growth rate 2001-2005 Annual growth rate 2006-2012 Letters - domestic Letters - international Parcels - domestic Parcels - international Express Products - domestic Express Products - international

30. Titre de la diapositive Key factors influencing changesPOSITIVE Economic factors Improvement in global economy (GDP)Improvement in global economy (GDP) Development of international commerceDevelopment of international commerce Effects of economic globalisationEffects of economic globalisation Social or demographic factors Advances in education or literacyAdvances in education or literacy Improved level of trainingImproved level of training Rise in populationRise in population Postal Sector Factors Improved quality of service to customersImproved quality of service to customers Flexibility to offer negotiated pricing optionsFlexibility to offer negotiated pricing options Diversification and introduction of new servicesDiversification and introduction of new servicesNEGATIVE Technological factors Development of the internet or emailDevelopment of the internet or email Easier access to new means of communicationEasier access to new means of communication Development of global communications marketDevelopment of global communications market Postal Sector Factors Liberalisation of the marketLiberalisation of the market Increase in postal ratesIncrease in postal rates

31. Titre de la diapositive Product and services portfolio in 2012 Predictions of member states 20012005201201-0505-12 Items containing personal correspondance 37.3%36.2%29.6% -1.1%-6.6% Items containing business correspondance 39.1%38.5%38.8%-0.6% +0.2% Items containing goods up to 2 kg 6.1% 6.5%+0.0% +0.4% Advertising items 6.4%8.0 % 12.8%+1.6% +4.8% Newspapers and periodicals 11.1% 12.3%+0.0% +1.1% Total LETTER-POST income 100.0% +0.0% Number of responses: 21 Breakdown of LETTER-POST income DOMESTIC Service - ALL responses

32. Titre de la diapositive Product and services portfolio in 2012 Predictions of member states

33. Titre de la diapositive Types of Products Private customers ratio 20052012 Letters – Domestic 32.5%31.9% Letters – International 53.1%49.1% Electronic services – International 58.4%47.3% Electronic services – Domestic 70.2%53.7% Predicted customer profile in 2012

34. Titre de la diapositive Types of Products Market share held by designated operators 20052012 Personal correspondence - Domestic 84.5%82.1% Business correspondence - Domestic 76.8%70.9% Advertising items – Domestic 54.2%60.4% Newspapers and Periodical–Domestic 58.7%61.9% Letters –International 81.8%75.5% Predicted market share in 2012

35. Titre de la diapositive Evolution of the postal sector Universal Postal Union © UPU 2007 – All rights reserved Key Issues Universal service Definition of realistic and obtainable universal service levels Network Access Competitive markets conditions including access to domestic postal networks Access at fair conditions to the domestic payments systems

36. Titre de la diapositive Evolution of the postal sector Universal Postal Union © UPU 2007 – All rights reserved Challenges In the next decade: Developed economies - need to increase the efficiency of existing infrastructures Developing economies - challenge to build infrastructures and contribute to economic and social development.

37. Titre de la diapositive Universal Postal Union “ Connecting today’s postal sector with tomorrow’s future” Thank you for your attention. Universal Postal Union © UPU 2007 – All rights reserved