August 23, 2017

Agenda Agenda Welcome and Call to Order Badge Office Logistics and Other Administrative Notes Financial Update Luke Grossmann, VP, Finance & Planning New Representatives and New Association Names Close Out   1

Focus Groups FOCUS AREA  Mail Prep & Entry, Operations (Cintron/Rosser) Enterprise Analytics/ Data Usage (Cronkhite/ Anagnostopoulos) Payment & Acceptance, Education (Mehra/ Schimek) Product Innovation/Emerging Technology (Reblin/Colella) 9:00 am –10:15 am Periodicals 1/Stumbo Room 7801 First-Class 2/Tate Ben Franklin Room USPS Marketing Mail 3/Flanagan Room 1P410 Packages 4/Medeiros Room 4841 10:30 am – 11:45 am Packages 5/Medeiros USPS Marketing Mail 6/Flanagan   Periodicals 7/Stumbo First-Class 8/Tate LUNCH (11:45 AM – 1:00 PM) 1:15 pm – 2:30 pm USPS Marketing Mail 9/Flanagan Packages 10/Medeiros First-Class 11/Tate Periodicals 12/Stumbo 2:45 pm – 4:00 pm First-Class 13/Tate Periodicals 14/Stumbo Packages 15/Medeiros USPS Marketing Mail 16/Flanagan 2

Financial Results Quarter 3 of FY2017 Luke Grossmann Vice President, Finance & Planning

Q3 Financial Results (Quarter Ended June 30, 2017) 1 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses. 2 - Quarter 3 has the same number of delivery and retail days compared to SPLY. 3 - Effect of 18% increase in RHB normal cost due to OPM changes to demographic assumptions and lower discount rate. 4 - FERS is an estimate and subject to change once we receive the bill. 5 - FY2016 data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

FY2017 June YTD Financial Results 1 - Temporary exigent surcharge expired April 10, 2016. 2 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses. 3 - June YTD has one less delivery and retail day compared to SPLY. 4 - Effect of 18% increase in RHB normal cost due to OPM changes to demographic assumptions and lower discount rate. 5 - FERS is an estimate and subject to change once we receive the bill. 6 - FY2016 data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

Actual versus SPLY FY2017 June YTD Volume (Pieces – Millions) 117,000 116,877 (4.1)% FCSP = (6.6)% FC Presort Ltrs & Other = (2.9)% 116,500 2.9B Pieces 116,000 -1,931 115,500 (1.8)% 115,000 114,500 -1,071 (2.4)% 11.0% 2.3% (24.9)% 17 114,017 (4.9)% -95 114,000 -210 SPLY FC Marketing MailMarketing Mail Periodicals Shipping & PackagesShipping & Packages International Other Actual June YTD has one less delivery and retail day compared to SPLY.

Marketing MailMarketing Mail Shipping & PackagesShipping & Packages Actual versus SPLY FY2017 June YTD Revenue Excluding Exigent Surcharge ($ – Millions) $465M 0.9% 6.8% $53,182 53,200 (0.5)% 12.8% $190 53,000 -$10 52,800 $52,717 (4.8)% FCSP = (6.4)% FC Presort Ltrs & Other = (4.0)% 52,600 52,400 52,200 -$1,000 $1,686 52,000 51,800 (2.5)% 51,600 -$325 (6.7)% 51,400 -$75 SPLY FC Marketing MailMarketing Mail Periodicals Shipping & PackagesShipping & Packages International Other Actual Revenue before change in accounting estimate in FY2016 which resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

June YTD has one less delivery and retail day compared to SPLY. Shipping & Package Volume: FY2017 June YTD vs. SPLY June YTD has one less delivery and retail day compared to SPLY. FY2016 3.9B FY2017 4.3B First-Class Pkg Svc & FCM Parcels Priority Mail Express & Priority & USPS Retail Ground Package Services Parcel Select & Return & Marketing Parcels 0.4B

June YTD has one less delivery and retail day compared to SPLY. Shipping & Package Revenue FY2017 June YTD vs. SPLY: (Excluding Exigent Surcharge in 2016) June YTD has one less delivery and retail day compared to SPLY. FY2016 $13.1B FY2017 $14.8B $1.7B First-Class Pkg Svc & FCM Parcels Priority Mail Express & Priority & USPS Retail Ground Package Services Parcel Select & Return & Marketing Parcels

Controllable Expenses 1, 2 1 - June YTD has one less delivery and retail day compared to SPLY. 2 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses.

New Association Members New Association Representatives: Jessie Laybourne-Ross: National Retail Federation   Scott Holton: American Bankers Association Holly Kozlencer: Gravure Association of the Americas Kathleen Siviter: News Media Alliance David Day: NPES – The Association for Suppliers of Printing, Publishing & Converting Technologies John Millet: American Association of Political Consultants (AAPC) Joseph Hillyer: Classroom Publishers Association 11

August 23, 2017