Proposed 2015 Promotions and Innovations Gary Reblin, VP New Products & Innovation February 17, 2015

Drive the usage and integration of new technology to evolve mail Encourage mailers to infuse direct mail with mobile technology, to increase engagement and to drive ROI Encourage use of first class mail for advertising and reward continued usage Show value of direct mail to eCommerce merchants Promote the value of mail to the digital community and build customer awareness of new uses for mail Promotion Strategy 2

2014 Promotions Results 53 Promotions by the numbers… FY 2014 Promotions (7 promotions) generated: ■ 7.8B mailpieces ■ $1.8B in revenue ■ 1,487 participating customers ■ Over $48M in discounts received by participating customers =

4 ■ PRC filing on 1/15/2015 ■ Proposed four promotions from May 1 – December 2015  Earned Value  Color Transpromo  Emerging and Advanced Technology  Mail Drives Mobile Engagement ■ Took feedback  Promotions will run for longer period  Focused on most popular areas  Ran multi-year color promotion to help off-set investment Overview

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6 Earned Value Encourages FCM mailers to keep using Business Reply Mail (BRM) and Courtesy Reply Mail (CRM) Customers may use their Earned Value credit to pay postage for First-Class and Standard Mail mailings No changes to the requirements for proposed 2015 promotion 2015 Proposed Promotions

7 Color Transpromo Encourages FCM mailers to invest in and use color transpromotional messaging on bills and statements Leverages color and open-and-read rates of transactional documents for promotional and informational purposes Increases the value of transactional mail by fostering enhanced customer engagement No changes to the requirements for proposed 2015 promotion 2015 Proposed Promotions

8 Emerging and Advanced Technology Encourage Direct Mailers to incorporate interactive technology to drive interest in mail as a marketing channel 2015 Proposed Promotions New features proposed for 2015 Eligible Mail: Standard Mail, Nonprofit Standard Mail and First Class Mail letters, flats and cards. Mailpiece must integrate specified technologies Advanced Augmented Reality NFC Augmented Reality OR…

9 Emerging and Advanced Technology New Entrants 2015 Proposed Promotions Advances in Inks Change color based on variations in temperature, pressure, exposure to liquid or light Conductive inks can print a “circuit” which can be used to activate other components (light, sound) Advances in Paper characteristics – provide new levels of sensory engagement to help drive increased customer response Must still be automation compatible Textural, Scented, Sound, Visual Interactive mailpieces 3-Dimensional, pop-ups, infinite folding, etc. Use innovative new technologies in paper and inks; and include interactive mailpieces

10 Utilize state of the art mobile purchasing technology with direct mail to facilitate purchases and eCommerce Eligible mailpieces must include print/mobile technology that can be read or scanned by a mobile device that allows the recipient to make a product purchase. This must: Include best practices like directional copy on the mailpiece Link to mobile-optimized sites 2015 Proposed Promotions

Questions?