1. ® Western Area Mailing Industry Focus Group July 21 2015

2.   Operational Window Changes (OWC) and FCM Volume Decline   Service Performance   Commitment to Customers and Employees   Customer Communications   Innovation to Grow Business  Agenda 2

3. FY 2015 Service Challenge 3

4. Operating Window Change (OWC) implementation began in all processing facilities 320 Significant changes to: Transportation Schedules Machine Schedules Employee Schedules Customer Supplier Agreements  CSA 4

5. FCM Volume Decline 5

6.  First Class Volume Decline Source: RPW, FY2007 – FY2014 6

7. National Service Performance 7

8. 8 Performance IndicatorPostal Quarter 3 April 1 – June 30, 2015 FCM Composite89.99 Priority Mail Composite91.49 STD Combined (DSCF & DNDC Ltrs & Flts) 91.30 Periodicals86.74

9. Customer Communications 9

10. We will continue:  Industry Alerts  Industry & PCC webinars and presentations PCC and Managed Account messaging from:  PCC program office  HQ Business Customer Support & Service  From Area and District BSNs BME messaging to affected customers Weekly posting of planned operational moves on RIBBS Structured release cycle for labeling list / mail directional file changes  Customer Communications 10

11. Growing the Business 11

12. 0303  Investments – Next Gen Equipment Delivery Sortation System PASS Real-Time Scanners Mobile Delivery Device (Replacement Scanners) Ring Scanners New Parcel Sorters Future Vehicles 12,7014,162208,462 263,486 Coming Soon: Surface Visibility Scanners 31 ~22,000 12

13. We are Committed to Service Excellence  Commitment Engage Industry Stability with OWC  C OMMITMENT TO S ERVICE E XCELLENCE Use Data and Diagnostic Tools Educate and Empower Employees Drive Efficiency 13