Chief Operating Officer Northeast Area Focus Group Northern New England Albany Greater Boston Connecticut Valley Westchester Long Island Northern New Jersey David E. Williams Chief Operating Officer New York Triboro Caribbean

Agenda Opening Remarks Service Performance Peak Season Readiness Northeast Area Focus Group Agenda Opening Remarks Service Performance Peak Season Readiness MTE Update Election / Political Mail Recap Questions & Answers

Thank You for Your Participation In This valuable process Northeast Area Focus Group Thank You for Your Participation In This valuable process Value of the Area Mailer Industry Focus Groups: Forum to Communicate Operational Changes Provides a Forum for Crucial Feedback / Suggestions / Ideas Builds Critical Relationships at All Levels of the Organization Immediate Issue Resolution

Service Performance Update Northeast Area Focus Group Service Performance Update 4

First-Class Composite FY 2016 93.00 QTR 4 94.40 Actual SPLY Var +3.38 +2.52 96.00 96.00 FCM Composite UCL/LCL Target SPLY 5

Standard Composite Trend FY 2016 92.97 QTR 4 95.59 Actual SPLY Var +3.39 +3.84 91.00 Standard Composite UCL/LCL Target SPLY

Standard DSCF Letters 94.83 96.64 +3.56 +2.96 FY 2016 QTR 4 Actual SPLY Var +3.56 +2.96 91.00 DSCF Letters UCL/LCL Target SPLY

Standard DSCF Flats 85.39 91.20 +2.68 +7.08 FY 2016 QTR 4 Actual SPLY Var +2.68 +7.08 91.00 DSCF Flats UCL/LCL Target SPLY

Standard DNDC Letters 93.76 95.75 +3.22 +3.13 FY 2016 QTR 4 Actual SPLY Var 95.75 +3.22 +3.13 91.00 DNDC Letters UCL/LCL Target SPLY

Standard DNDC Flats 89.24 93.01 +3.24 +5.72 FY 2016 QTR 4 Actual SPLY Var +3.24 +5.72 91.00 DNDC Flats UCL/LCL Target SPLY

Periodicals 84.36 87.16 +1.67 +4.66 FY 2016 QTR 4 Actual SPLY Var 91.00 Periodicals UCL/LCL Target SPLY

Continuous Improvement Focus Service Performance Summary Continuous Improvement Focus Mitigate Air Capacity Constraints Align and Optimize Surface Transportation Reduce WIP Cycle Times Focus on Last Mile Opportunities Intense Focus on Vital Few Opportunities Ensure Employee & Industry Engagement

Northeast Area Focus Group PEAK SEASON READINESS

Additional package processing capacity added to our network Peak Season Readiness HQ and Area Network Operation Centers established starting mid November Centers to be staffed 24 hours / 7 days through Peak Staffing resources will include Air, Surface, and Processing Operations Resources will respond in real-time to transportation issues Additional package processing capacity added to our network 27 Automated Package and Bundle Sorters (APBS) expanded 8 Automated Package Processing Systems (APPS) expanded 18 APPS installed with Supplemental Induction 12 additional Small Package Sorter Systems (SPSS) for a total of 33 High Throughput Parcel Sorter (HTPS) with 400+ separations 14

Increased scanning visibility for our customers Peak Season Readiness Air Capacity 7.5% increase in dedicated air capacity to SPLY Increased scanning visibility for our customers 85+ new Surface Visibility (SV) sites 68 Peak Annex facilities with SV Additional Vehicles 12,000 Pro-Masters 3,000 2-Tons Additional Employees Hiring Plans – 37K 15

Northeast Area Focus Group MTE UPDATE

USPS Has Already Spent $23M in New Buys for FY 2017 MTE Inventory USPS Has Already Spent $23M in New Buys for FY 2017 Sacks, Plastic Trays, Plastic Flat Tubs and Sleeves Quarter 1 purchases being received through December MTE Inventory Available to Meet Peak Season 3.7 Million EMM Trays & Sleeves 3.7 Million MM Trays & Sleeves 3.4 Million Half-Trays & Sleeves 1.0 Million Pallets 3.5 Million Flat Tubs 1.9 Million Sacks 17 17

Election & Political Mail RECap Northeast Area Focus Group Election & Political Mail RECap

Readiness: Election & Political Mail Update Designated Lead Coordinators for every Area and District Developed an Official Election Outreach Toolkit Field Managers met with all Election Officials Developed a system to document and track Election Official Meetings, Internal and External Issues Created an interactive map to assist Election Officials with USPS Points of Contact, Stakeholders and State Voting Rules Conducted webinars and Stand-up talks focused on various Political and Election Mail subjects targeted at key stakeholder groups

Compliance and Tracking: Election & Political Mail Update Compliance and Tracking: Weekly Scorecard to track Issue Log and mandatory Political and Election Mail Stand-up talks certification compliance Daily Plant and Post Office all-clear certification of Political and Election mail the week before and after Election Day Political Mail Service Performance Tracking for increased internal awareness Election and Political Mail Logs at Plants and BMEUs

USPS – Industry Collaboration Partnership USPS – Industry Collaboration Exchange Ideas & Preempt Issues Area Mailing Industry Focus Groups MTAC PCC Meetings NPF Drive Innovation and Adopt Technology Committed to Collaboration/Communication Opportunities: Area Mailing Industry Focus Groups – Calendar by Area https://ribbs.usps.gov/index.cfm?page=periodicalsfocus Growing Together NPF 2017 – Baltimore, MD May 21-24 http://www.npf.org https://ribbs.usps.gov/index.cfm?page=mtac MTAC – Meet Quarterly

Summary Committed to Service Excellence Our Commitment Northeast Area Focus Group Summary Committed to Service Excellence Our Commitment Proactive Communications Transparency Ready for a Successful Peak Season

Northeast Area Focus Group Thank You Questions? 23