1. Vice President Delivery Operations
April 25, 2017
USPS Leadership Forum
for Stakeholders
Operations update
Kevin McAdams
Vice President Delivery Operations

2. Agenda Service Performance MTE Update Questions & Answers
USPS Leadership Forum for Stakeholders
Agenda
Service Performance
MTE Update
Questions & Answers

3. USPS Leadership Forum for Stakeholders
Service Performance

4. First-Class Composite (Letters/Flats)
YTD
Q2TD
Actual
93.07
92.77
SPLY Var
+1.65
+2.07
96.00
Q3 FY16
Q4 FY16
Q1 FY17
Q2 FY17
94.35%
94.43%
91.87%
92.77%
+5.00 Q3 FY15
+2.55 Q4 FY15
+1.96 Q1 FY16
+2.07 Q2 FY16
Data through March 31, 2017
Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

5. First-Class Composite (Letters/Flats)
Proportion of Mail Delivered in Days
0-1 Day
2 Days
3 Days
4 Days
5 Days
6+ Days
Avg. Days
FY17 Q2
20.1%
41.65%
32.5%
4.1%
1.0%
0.7%
2.2
FY16 Q2
18.0%
43.0%
31.3%
5.2%
1.3%
1.1%
2.3
FY17 Q2 thru 03/31/17, FY16 Q2 thru 03/31/16
Composite scores are calculated by combining scores using RPW Weights.

6. Marketing Mail Composite
YTD
Q2TD
Actual
90.16
91.12
SPLY Var
+4.04
+3.40
91.00
Q3 FY16
Q4 FY16
Q1 FY17
Q2 FY17
92.06%
92.37%
89.30%
91.12%
+4.83 Q3 FY15
+5.47 Q4 FY15
+4.51 Q1 FY16
+3.40 Q2 FY16
Data through March 31, 2017
Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

7. Marketing Mail Composite
Proportion of Mail Delivered in Days
0-1 Day
2 Days
3 Days
4 Days
5 Days
6+ Days
Avg. Days
FY17 Q2
13.5%
32.7%
26.1%
15.6%
4.5%
7.6%
3.1
FY16 Q2
9.7%
31.2%
27.0%
17.0%
5.7%
9.3%
3.3
FY17 Q2 thru 03/31/17, FY16 Q2 thru 03/31/16

8. Periodicals Composite
YTD
Q2TD
Actual
83.59
85.46
SPLY Var
+7.05
+6.67
91.00
Q3 FY16
Q4 FY16
Q1 FY17
Q2 FY17
82.70%
83.66%
81.83%
85.46%
+4.35 Q3 FY15
+6.13 Q4 FY15
+7.49 Q1 FY16
+6.67 Q2 FY16
Data through March 31, 2017
Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

9. Periodicals Composite
Proportion of Mail Delivered in Days
0-1 Day
2 Days
3 Days
4 Days
5 Days
6+ Days
Avg. Days
FY17 Q2
66.6%
112.70%
7.3%
4.2%
2.4%
6.8%
2.0
FY16 Q2
65.0%
13.5%
6.3%
4.0%
2.8%
8.2%
2.1
FY17 Q2 thru 03/31/17, FY16 Q2 thru 03/31/16

10. Continued Focus Compliance to Operating Plan and 24hr Clock
Service Performance Summary
Continued Focus
Compliance to Operating Plan and 24hr Clock
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

11. USPS Leadership Forum for Stakeholders
MTE Update

12. USPS Has Spent $41.5M YTD on MTE New Buys
MTE Inventory
USPS Has Spent $41.5M YTD on MTE New Buys
Plastic Trays and Sleeves, Pallets, Plastic Flat Tubs and Sacks
MTE Inventory Available today
14.1 Million EMM Trays & Sleeves
10.3 Million MM Trays & Sleeves
6.8 Million Half-Trays & Sleeves
1.3 Million Pallets
1 Million Pallets on order
4.4 Million Flat Tubs
2.5 Million Sacks 12 12

13. 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
Growing Together
NPF 2017: Baltimore, MD – May, 21-24
MTAC – Meet Quarterly

14. USPS Leadership Forum for Stakeholders
Thank You
Questions? 14