Mailers Technical Advisory Committee Update January 2016

Slide 2 MTAC Executive Committee Members ( ) IndustryU. S. Postal Service Erv Drewek Industry Chair ( ) Graphic Communications, a Veritiv company Jim Nemec Postal Chair Vice President, Consumer & Industry Affairs Wanda Senne Industry Vice Chair ( ) Access Worldwide Judy de Torok Postal Co-Vice Chair Manager, Industry Engagement & Outreach Consumer & Industry Affairs Christopher G. Lien Immediate Past Industry Chair ( ) BCC Software Tom Hughes Postal Co-Vice Chair Manager, Business Customer Support & Service Consumer & Industry Affairs Dale Kennedy Program Manager Manager, Industry Engagement Strategy Industry Engagement & Outreach

Slide 3 MTAC Leadership (2014 to 2015) Industry LeadersPostal Service Classes of MailFocus Areas First-Class MailPayment & Acceptance, & Education Mike Tate American Bankers Association Bank of America Bob Schimek Idealliance Satori Software Pritha Mehra VP, Mail Entry & Payment Technology PeriodicalsEnterprise Analytics & Data Usage Randy Stumbo Gravure Association of the Americas Meredith Corp. Angelo Anagnostopoulos Edison Electric Institute GrayHair Software Inc. Robert Cintron VP, Enterprise Analytics Standard MailMail Preparation, Entry, & Operations Rose Flanagan National Alliance of Standard Mailers & Logistics Data-Mail Inc. Bob Rosser Association for Postal Commerce (PostCom) IWCO Direct Linda Malone VP, Network Operations Package ServicesMailpiece Design & Product Development John Medeiros Parcel Shippers Association DHL Global Mail Steve Colella Epicomm The Calmark Group Gary Reblin VP, New Products and Innovation

Slide MTAC / Top Priorities Association Recruitment  Seek additional association membership with industries not fully represented on MTAC i.e. Health Care, Insurance, others  MTAC Industry Vice-Chair to manage recruitment and membership Member Involvement  Encourage increased member engagement Workgroups, User Groups, Task Teams  Internal recruitment for new Leadership positions Continue Work with USPS on Top Mailing Issues  Wherever possible MTAC will continue to work with the USPS on pressing matters to our industry Areas of Importance include: Technology Interface, Flats Processing, Defining Mail Class Machinability Standards and Future Verification Standards

Slide 5 Current User Groups #1 - PostalOne!, SASP, Intelligent Mail (Biweekly) #2 - eVS/Product Tracking System (Monthly) #3 – FAST (Biweekly) #4 – Informed Visibility (previously CONFIRM) (Biweekly) #5 – Addressing (Technology & Business Strategy) (Biweekly) #7 – MTEOR (Quarterly) #8 – USPS Promotions (Monthly) #9 – Presort Reference Data (Biweekly) #10 – Mail Acceptance and Payment (Monthly)

Slide 6 Status of Workgroups and Task Teams In-Progress  WG FSS Multi-scheme Pallets  WG Refining Package Machinability Standards  WG PAVE Enhancement  WG Payment Modernization  WG An Informed Delivery APP  WG 175 – Streamlining CSA Mail Preparation  WG 176 – Streamlining RIBBS Information  WG 177 – Improvement in Address Quality Methodologies Task Teams  TT 23 - Readiness for Trend Based Verification

Slide 7 MTAC – January / General Session Recap PMG Megan Brennan  PMG thanked mailing industry for its continued active participation in MTAC  USPS’ focus for 2016 remains unchanged, which includes its commitment to service improvement. “Service is foundational and key to our growth” DPMG and Chief Government Relations Officer Ron Stroman  Legislative update and responded to questions around the state of the USPS Board of Governors appointments as well as ongoing postal reform discussions Chief Marketing and Sales Officer Jim Cochrane  Dan Barrett provided an overview of the USPS’ “Future of the Mail”  Cliff Rucker, USPS VP of Sales, provided an update on the USPS’ plans to grow political mail volume in this Presidential election year COO David E. Williams  Gave an update on peak season performance and service performance for Quarter 1 ACIO and EVP Randy Miskanic & VP Mail Entry/Payment Pritha Mehra  Addressed the MTAC group about the ongoing challenges with PostalOne! Stability CFO Joe Corbett  Provided update on the USPS’ finances through November 2015, noting that December data has not yet been audited

Slide 8 Key Highlights of Focus Areas Mail Preparation, Entry, & Operations  Review post Peak Season Deep dive into data  Tracking truck arrivals at USPS facilities New procedures for arrival time and unload time  High Speed Flat Feeder (HSFF) & SAMP Update Impact to flats cost coverage  Broken bundle report #1 reason for machine stoppage; $ millions in cost Enterprise Analytics & Data Usage  Mail tracking data access (Current vs. Future State) Timeline of Informed Visibility (National deployment by Sept ‘16)  Class by class review of Service Performance by processing category Full Service Volume in Measurement, Score trends, & Last mile report trends  Address Management Involvement in UG5, WG171, & WG 177 New STIDS for BPM & Reply Mail  DPV Confirmation requirement for secondary address on Packages

Slide 9 Key Highlights of Focus Areas Mailpiece Design & Product Development  Pulse of the Industry by Class  Review of 2015 Promotions (Revenue and Volume)  Update on 2016 Promotions Individual address for each promotion posted on RIBBS  Discuss New Technologies USPS wants your samples; Irresistible Mail; Mail award  Informed Delivery pilot update  Pricing Simplification by Class Payment & Acceptance, & Education  Exigency Rollback PostalOne updates; postage statements, price cell changes only, etc.  Enterprise Payment Upgrading its payment architecture for ACH payments; effects CAPS & PO!  Mailer Scorecard Status Assessments are forthcoming

Questions?

Slide 11 Postmaster General’s Mailers Technical Advisory Committee Association of Associations  Representatives of the industry – not companies  Currently Over 50 Associations have an MTAC membership Associations include: DMA, PostCom, MPA, IDEAlliance, Alliance of Nonprofit Mailers, PIA, NNA, PSA, etc. One Association Executive and up to Three Association Representatives per Association Approximately175 Association Executives and Representatives Focus  A venue for the U.S. Postal Service to share technical information with mailers, and to receive their advice and recommendations on matters concerning mail-related products and services  Enhance customer value and expand the use of these products and services for the mutual benefit of Mailing Industry stakeholders and the Postal Service.

Slide 12 MTAC Meetings Quarterly meetings generally held at USPS Headquarters  MTAC members are required to attend. Substitutes are not allowed. Approved Industry experts can attend as guests  Each association is permitted a maximum of three guests per year Becoming an MTAC Member:  Check the MTAC Roster posted on ribbs.usps.govribbs.usps.gov Meeting Format  Tuesday Morning – MTAC Committee Meetings  Tuesday Afternoon MTAC General Session – Open  Wednesday All Day Focus Group Meetings – Closed MTAC General Assembly (announcements; recognize new members) MTAC Business Meeting for current MTAC industry members only  Thursday Morning – Workgroup Sessions & Meetings MTAC Leadership and Executive Committee meetings

Slide 13 MTAC Structure / Types of Committees Group Type Intended Function Primary Sponsor / Oversight Group Participants Approval of Participants Timeframe User Group Ongoing forum for USPS & users of a particular postal product or process. MTAC Focus Area Leader (postal and/or industry) Subject Matter Experts (both USPS and industry) User Group Leaders Open - No specific end date. Annual review of issue statement in August by the MTAC EC. Work Group Address defined issues, and provide recommendations MTAC Focus Area Leader (postal and/or industry) Primarily MTAC Members and industry experts MTAC Focus Area Leader Concludes when recommendations are submitted for consideration (per the issue statement) Task Team Quickly address very specific issue to achieve results in a strict, often urgent period of time. MTAC Executive Committee (may also be delegated to Focus Area Leader if subject is specific to an Area) Specifically selected by MTAC Leadership and Executive Committee MTAC Executive Committee Concludes when task or problem resolution is completed (per the issue statement)

Slide Meeting Schedule MTAC Meeting Dates  January , 2016  March , 2016 (Meetings will be at the National Postal Forum in Nashville, Tennessee, exact time and dates TBD)  July , 2016  November 1 - 3, 2016 Contact an MTAC Association Executive if you would like to attend as a guest

Slide 15 Recent and Planned MTAC Related Webinars Webinars and Related information is located on the Industry Outreach page of RIBBS  Industry Alert communications are also archived at this location.

Slide 16 Industry Resource Guide