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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS) TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) Subtitle (20pt. Arial, Bold, Title Case) Press Event February 6, 2013

FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE). Press Event February 6, 2013. Subtitle (20pt. Arial, Bold, Title Case). FOOTER (10PT. ARIAL, BOLD, GREY, CAPS). Today’s Announcement. New Delivery Schedule. Adapting to America’s Changing Mailing Habits. - PowerPoint PPT Presentation

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Page 1: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Subtitle

(20pt. Arial, Bold, Title Case)Press Event

February 6, 2013

Page 2: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

2

Today’s AnnouncementNew Delivery Schedule

Page 3: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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Adapting to America’s Changing Mailing Habits

Volume in Billions of Pieces

0.0

10.0

20.0

30.0

40.0

2007 2008 2009 2010 2011 2012

37% Decrease since 2007

First-Class, Single-Piece Volumes

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$15.9B loss in FY2012

$11.1B default in FY2012 to the United States Treasury for Retiree Health Benefits

$15B borrowing authority exhausted

Liquidity very low

Ongoing Financial Challenges

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5

Reduced career workforce by 193,000 positions – without layoffs

Reduced annual cost base by $15B

Consolidated more than 200 mail processing facilities

Aggressive Cost Reduction Since 2006

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Changes to Mail Delivery

New Delivery Schedule •Six Days of Package Delivery •Five Days of Mail Delivery•Begins the week of August 5, 2013

6

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New Delivery Schedule Components

Mail Delivery

•Monday – Friday mail delivery service

Package Delivery

•Monday – Saturday package delivery service continues

Post Offices (P.O.)

•Post Offices remain open on Saturdays

•Mail delivered to P.O. Boxes on Saturdays

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Package Business Growth

Rising Demand for Package Delivery Driven by eCommerce Growth

Page 9: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

9Sources: Gallup Poll, March 26, 2010 ● New York Times/CBS News, June 27, 2012 ● USA Today, March 17, 2010 ● Washington Post, March 30, 2010

Seven out of Ten Americans Support a Five-Day Mail and Package Delivery Schedule

Higher support likely with six days of package delivery

Survey Research: Five-Day Mail Delivery

Page 10: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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Preparation and Timing

Our Commitment

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Approximately $2B in annual cost reduction

Reduction of approximately 45 million Work hours annually

New Delivery Schedule: Projected Cost Reduction

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Timeline

Feb Mar Apr May June July Aug

March - AugustCustomer communication

Week of August 5Implementation of new delivery scheduleMarch

Release detailed implementation plan

March - AugustWebinars/outreach with business mailers

Feb. 6 Initial notification of new delivery schedule

Page 13: FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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ConclusionConclusion

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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Subtitle

(20pt. Arial, Bold, Title Case)