1. Northeast Area Effective Communications Communication

2. Employee Wellbeing OSHA II Northeast Area5.56+10.6%#2 FY 15 YTD2.82-42.6%#1 Recordable203 vs. 368 -165 Motor Vehicle Northeast Area3,331+589+21.5% FY 15 YTD 231 -35-13.2%

3. Voice of the Employee VOE Northeast Area63.85+1.25 +2% Question Breakdown _+ _0_ _-_ Northeast Area 29 2 2

4. 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

5. New VOE Questions

6. The Customer Experience Retail Customer Experience NortheastFY 15 YTD Overall 92.90 95.10 WTIL 88.20 90.30 Hazmat 94.29 100 Promotions & Merchandise97.50 98.60 Image96.80 96.80

7. Northeast Area

8. Improve the Customer Experience

9. Customer Insights Measurement- Corporate Goal- 82.5% 40% 20%

10. Service Performance Northeast FY 15 First-Class Composite94.2994.80 Priority Composite87.5392.11 Standard Composite85.8585.95 Scanning95.0795.51 Parcel Select99.6699.63 Amazon99.8499.84

11. Service Performance Scanning Performance Northeast FY 15 Acceptance Scan92.2795.41 Originating Enroute88.4091.88 Destinating Enroute89.8090.51 AAU Scan98.7097.95 Stop the Clock 99.27 98.43 ADE Scan 98.85 97.34 Total 95.08 95.51

12. 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

13. 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%

14. 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-2B15.13% 13.51% F-411.16% 11.26%

15. Volume Trend 2013 – FY 2015 Pieces - Billions -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%

16. * FY13 total revenue excludes $1.3B reduction in Deferred Revenue – Prepaid Postage $ Billions +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

17. NEA – Total On-Hand by Week OCT ’14 – JAN ‘15 Peak Season Fall Mailing Season Columbus Day Veteran’s Day Thanksgiving “Black Friday” Christmas Day Post New Year’s Election Day MLK Holiday

18. NEA – FCM On-Hand by Week OCT ’14 – JAN ‘15 Peak Season Fall Mailing Season Columbus Day Veteran’s Day Thanksgiving “Black Friday” Christmas Day Post New Year’s Election Day MLK Holiday

19. NEA – PER On-Hand by Week OCT ’14 – JAN ‘15 Peak Season Fall Mailing Season Columbus Day Veteran’s Day Thanksgiving “Black Friday” Christmas Day Post New Year’s Election Day MLK Holiday

20. NEA – STD On-Hand by Week OCT ’14 – JAN ‘15 Peak Season Fall Mailing Season Columbus Day Thanksgiving “Black Friday” Christmas Day Post New Year’s MLK Holiday Election Day Veteran’s Day

21. NEA – Total On-Hand by Week OCT ’14 – JAN ‘15 Peak Season Fall Mailing Season Columbus Day Veteran’s Day Thanksgiving “Black Friday” Christmas Day Post New Year’s Election Day MLK Holiday

22. 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

23. Package Forecast – Peak Season Amazon + 30% over current volumeUPS + 6% over current volumeFedEx + 8% over current volumePriority Mail + 11.9% over current volumeTotal Shipping & Package Services + 15%First-Class Packages + 24% over current volume Package Projections 23

24. 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

25. Summary Peak season is the key to our future package growth success  Excellent Peak Performance = Growth  Average Peak Performance = Lost Opportunity Peak Season 25

26. Northeast Area Effective Communications Communication