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
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Today’s AnnouncementNew Delivery Schedule
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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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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
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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
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
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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
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ConclusionConclusion
FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)
TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)
Subtitle
(20pt. Arial, Bold, Title Case)
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