Scheme for Growth Pilot Royal Mail Group: Scheme for Growth Pilot Tips for Completing Application Forms

Your company name and background; How to Apply To participate in the Scheme, you need to complete an application form and include the following details: Your company name and background; An overview of the mailing activities you propose to include as new incremental volume and what you expect to achieve from the activities (Key Performance Indicators); Details of the mail providers you use A list of all your Royal Mail credit account numbers and/or Unique Customer Identifier (UCID) numbers (as applicable); Your previous 2 years advertising mail volumes; Your forecasted new, incremental volume for the next 12 months. You should discuss your application with your postal service provider. You may ask them to submit and manage your application on your behalf. If you do nominate someone else to manage your application, please ensure you check and sign the application form yourself. 1

5 things to be aware of before sending your applications The application form should be submitted with signed T&C’s and a signed application form. If a 3rd party is managing the application on behalf of the customer they must also sign the application form Applications must include all historic advertising volumes whether posted via Royal Mail Retail, Royal Mail Wholesale or Direct Delivery The historic volumes will need to include all advertising mail posted 24 months prior to the date the application is submitted The scheme posting dates will run for 12 months starting on the date the application was submitted e.g. application dated 12/09/17 Posting dates= 12/09/17 to 11/09/18 If there is a delay in processing the application the scheme posting dates will remain the same Royal Mail will carry out checks to verify historic volumes using Royal Mail account data or for Royal Mail Wholesale using UCID billing data For historic volume to be verified using a UCID it is important that the UCID is unique to the posting customer who has submitted the application. Note: All Wholesale Advertising Mail should be recorded against a unique customer UCID that is assigned to the originating customer If an UCID has been used incorrectly (e.g. mailing house used the same UCID for lots of different originating customers) Royal Mail will request further information to enable verification of historic volume (see next slide for an example) 2

Example where the UCID is assigned to a mailing house and is not unique to the customer applying for the Scheme Application states all historic volume for Customer A was posted using UCID 123 Baseline Volume entered on application form is 1.6m items Customer A completes and sends in their application form Royal Mail checks show only 1.5m items posted using UCID 123 But Royal Mail checks also show mail for Customer A was posted using UCID 234 Because UCID 234 is used for multiple customers we are unable to identify all Customer A volume in Royal Mail billing systems UCID 234 belongs to a mailing house. UCID 234 wasn’t used by the mailing house solely for Customer A. It was also used for postings made by Customer B and Customer C Including all mail for UCID 234 would result in a baseline volume of 2.5m Positive outcome achieved in c. 4 weeks following an exchange of emails and a few phone calls Outcome: Customer provided explanation and evidence that only 0.1m items were posted using UCID 234 Baseline volume was confirmed as 1.6m items and the application was approved 3

Please include ‘Group Incentive Application’ in the subject line. Application Process Royal Mail Wholesale can advise you on what information is needed at the application stage. They can even help you complete the application form. Should you require support please contact mike.griffin@royalmail.com via email or phone (07730734669) for further information Completed application forms can be submitted, along with a signed copy of the Terms and Conditions, via email to: groupincentive@royalmail.com. Please include ‘Group Incentive Application’ in the subject line. Royal Mail will acknowledge receipt of your application in writing within five working days and will confirm acceptance or rejection of your application within 10 working days after making a decision on your application.* Royal Mail will email you counter-signed Terms and Conditions and confirm your successful application. This acceptance will confirm: your expected baseline volume your expected postage credit value under the Scheme * If incomplete forms are submitted, or if Royal Mail asks you to provide further information to help verify your baseline, Royal Mail will confirm acceptance or rejection of your application within 10 working days after the date on which we have received all information that we require in connection with your application. 4

Q&A: Q: I don’t currently use Mailmark, can I still apply for the Scheme? A: Yes, if you are not Mailmark® enabled at the time of application you may still be eligible to apply provided that you commit to using Mailmark for your machine readable incremental Letter postings. Q: I send manual mail items that don’t qualify for Mailmark, can I still apply for the Scheme? A: Yes, you do not need to use Mailmark for incremental volumes that are non-machine readable (e.g. Poly-wrapped C5 letters) Q: I am looking to change mail provider in the next 12 months, will I be able to participate in the Scheme with my new provider? A: Yes, the Scheme will remain available regardless of who you post with. Although we recommend you check with your mail provider that they are participating in the Scheme. Q: What is my expected baseline? A: The expected baseline volume is the volume you would have expected to have posted during your 12 month incentive period without the Scheme incentive. it excludes any new, incremental volume you forecast to mail under the Scheme during your 12 month incentive period. Q: My advertising mail volumes have decreased in the past 2years. How will my baseline reflect this? A: If your growth trend is negative (or flat), your baseline will be set at the level of volume you posted in the previous 12 months prior to your application. 5

Q: My usage of advertising mail over the last 2 years is not an accurate indication of my expected volume growth for the next 12 months. Will you adjust my baseline? A: If, exceptionally, the previous 12 months historic volume growth rate is an inaccurate indication of your expected growth rate over the next 12 months Royal Mail will happily review any evidence to support this and may revise your baseline if appropriate. Q: How long is this scheme open for? A: The Scheme is currently open for new applications until 30th April 2018. Your participation in the Scheme however will last for 12 months from your agreed start date, even if the Scheme is closed to new participants during that time. Q: Will incremental mail items sent using the Business Mail service benefit from Scheme for Growth postage credits? A: No, the Scheme for Growth is only for advertising mail. Business Mail items are not included in the baseline calculation and do not qualify for postage credits under the Scheme. You may wish to consider using our Business Mail testing and innovation scheme instead. Q: What will happen if I intend to send more than 250,000 incremental items in the next year, but my actual incremental volume at the end of the scheme is less than 250,000 incremental items? A: You will not receive any postage credit if you send less than 250,000 incremental items. 6

Enquiries and further information: If you have any questions, or require further information regarding the Scheme for Growth Pilot, please contact Royal Mail either: By email: groupincentive@royalmail.com, or Visit Royal Mail online at: royalmailwholesale.com/schemeforgrowth 7