USPSWhere Infrastructure

and Technology

Meet to Deliver

We connect every address, every dayFrom business to personal and every place

in between for over 240 years

200,000+ vehicles

155M delivery points nationwide

31,606 retail outlets

More than McDonald’s, Walmart, and Starbucks combined

Delivery 7 days/week

4 billion packages/year, 512.8 million mailpieces/day

Keeping pacewhen people,packages,and technologyare on the move

Package processing

24/7, fully integrated, end-to-end processing

Automated Package Processing System (APPS)

• 9,500 pieces per hour throughout

• High-accuracy sortation for handwritten and

machine-printed addresses

Our customers are your customers—our brand is an extension of yoursDelivery expectations are ever changing.

Key needs center around:

Security

Value

Seamless experience

Reliability

Visibility

Sustainability

Security and confidentialityCustomer packages are protected by federal law.

Our IT systems process more than 363 million credit

card transactions annually.

We use secure data transfer for personal information.

2016 holiday deliveryWe increased holiday operations to

deliver for our customers.

• Christmas Day delivery in many metros

• Three shifts per day in key markets

• 35,000+ seasonal workers

We delivered more packagesthan FedEx and UPS

Cultivating a sustainable future

Americans rank USPS no. 1 of

13 federal agenciesGreenhouse gases cut

13.3% since 2008

Facility energy use reduced

31.4% since 2003

(According to a 2014 Gallup poll)

Purchased $236 million of environmentally

preferable products

We recycled

223,796 tons of waste

Our free packaging meets Sustainable Forestry

Initiative or Forest Stewardship

Council certification standards

Outpacing our competitors

While our industry is growing at a rate of 6.1%,

USPS is growing at 14.3%

Key player in e-commerce delivery

USPS even takes competitors’

packages the “last mile” for delivery

In growth and reach

Enhancements in visibilityInnovations that answer our

customers’ expectations

My USPS lets consumers manageincoming packages

Informed Delivery™ sends a daily email with images of mail that’s on its way

Improved scanning technology for bettertracking and real-time notifications

Predictive delivery notifies customersof estimated delivery time within one hour

Visibility made easyTracking packages via text, email, and online

applications provides both the shipper and

customer the resources needed for a

smooth handoff.

Trusted and reliableUSPS has been named the most-trusted

government agency for the past five years.

In 2014, USPS was named one of the 10 most-

trusted companies for privacy in North America.1

Low loss and damage: In the first three-quarters of

FY15, 99.99% of First-Class Mail® parcels and

Priority Mail® pieces were delivered

undamaged/without loss.

Volume of packages vs.losses and damages

Out of 1.1B packages,

99.99% were

delivered undamaged

1. 2014 Most Trusted Companies for Privacy Study, The Ponemon Institute, January 28, 2015.

Priority Mail

pieces

First-Class

Mail parcels

Shipping Solutions

First-Class Mail® Priority Mail® Parcel Select®Parcel Select

Lightweight®

Description

Economical, ounce-

based Commercial

Base® Pricing up to

15.99 ounces

Fast and affordable,

date-specified

delivery

Economical ground

service for regular

and large packages

Affordable presorted

parcel ground

service for packages

that weigh less than

1 pound

Delivery time

Delivery in 1 to 4

business days

Delivery in 1 to 3

business days

Domestic delivery

averages 2 to 9

business days (not

guaranteed service)

Domestic delivery

averages 2 to 9

business days (not

guaranteed service)

Tracking/

delivery

confirmation

Can combine with

extra services to

confirm delivery

Includes free USPS

Tracking® online

and at retail

Includes free USPS

Tracking for

domestic shipments

Includes free USPS

Tracking for

domestic shipments

InsuranceInsurance for loss or

damage up to $5,000

for merchandise only

Includes up to $50 of

insurance with most

shipments

Insurance available

for additional fee

Insurance available

for additional fee

Dimensional

(DIM) weight

No DIM weight

charges

USPS only applies

DIM weight pricing

to domestic Priority

Mail packages over

1 cubic foot shipped

to zones 5–9

No DIM weight

charges

No DIM weight

charges

Surcharges No surcharges for fuel or residential, rural, and regular Saturday5 delivery

Key shipping productsUSPS has a full range of products to deliver

packages in a timely and affordable manner.

Innovative solutionsThat redefine the customer experience

• Sunday delivery

• Same-day delivery

• Ship-from-store

• Customized delivery

• Poised for the next big thing

Sunday delivery

• Delivering to approximately 11,000 ZIP Code™ areas covering ~60% of total residential addresses

• Continued expansion based on volume density and demand

• Dynamic routing for optimum package routing

Changing to meet growing customer

expectations for convenience and speed

Same-day deliveryA unique USPS® service offering

Online Shopping

Convenient online shopping at stores offering a

range of consumer products

Same-Day Delivery

Fast, efficient, and convenient same-day delivery

of products in select metro areas for one low rate

Real-Time Tracking

Real-time visibility and order tracking throughout

fulfillment and delivery

Route Optimization

Route optimization and planning system to

maximize pickup and delivery and reduce costs

Handheld Communications

Handheld devices to communicate with delivery

personnel, merchants, and customers

Ship-from-storeContinues to be a valuable shipping

strategy for e-tail/retail

• Supports omni-channel retailing that drives inventory

advantages while increasing sales and traffic for

brick-and-mortar stores.

• Forrester projects 11% of total U.S. retail sales will be

shipped via in-store fulfillment by 2018.1

• USPS ship-from-store business has grown more than

30% annually.

• USPS currently serves over 13,700 retail

locations nationwide.

1. Forrester Research eCommerce Forecast, 2014 To 2019 (US), Forrester, April 22, 2015.

USPS ship-from-store process

Processing of USPS® packages Final sortation of USPS packages

Time in transit 1 to 2 days

USPS maintains package possession from pickup through sorting, transport, and

delivery of First-Class Mail® and Priority Mail® packages to the receiver’s address.

Local SCFRetail Store

Pickup of USPS First-

Class/Priority packages

USPS delivers packages

to receiver’s address

Local Post

Office™ (DDU)Receiver

Customized deliveryDelivering groceries and other prepackaged goods

with trusted USPS carriers on their existing routes

Currently in San Francisco; Southern California;

Sacramento; New York Metro; and Stamford, CT

• Washington, D.C.

• Boston

• Dallas

Open to discussion on new markets

• Chicago

• Seattle

• Miami

Potential markets under consideration

Simple solutionsUSPS makes integration of your systems

simple by providing the support you need.

• Our team of Operations Integration Specialists reduces the time it takes to get up and running with USPS.

• Payment methods, acceptance, transportation and equipment, packaging, and processing

• And, our Technical Integration Specialists help you make a seamless IT transition by implementing technologies that make it easier to do business with USPS.

• USPS Web Tools® (APIs), e-commerce web portal, Electronic Verification System (eVS®), Electronic Data Interchange over Internet, ePostage, PC Postage®, Scan-Based Payment, Barcodes (IMb® and IMpb™)/label/mailpiece certification

Timely deliverySpeed and consistent delivery are among the

most important differentiators. They can affect:

• Customer satisfaction

• Buyer’s remorse

• Call center costs

Shipping Solutions

First-Class Mail® Priority Mail®

Economical, ounce-based

Commercial Base® Pricing

up to 15.99 ounces

Fast and affordable, date-

specified delivery

Delivery in 1 to 4 business days Delivery in 1 to 3 business days

Statistics show that the returns experience is the

number-one source of pain for online shoppers. Our

footprint of over 31,000 retail locations and 155 million

pickup and delivery stops nationwide can help you:

• Reduce barriers to purchase

• Increase customer loyalty

• Improve inventory management

• Lower costs

2 of 3online consumers would buy

more with free returns.1

1. "E-Commerce Returns Best Practices," Shorr Packaging Corp., October 14, 2015.

95%of online customers would

repeat business if returns

process is simple. 1

Most convenient carrier for returns

Exceeding customerexpectations is criticalto our collective successWe put our strengths to work for you.

Established infrastructure

Emphasis on sustainability

Innovative and customized solutions

Enduring partnerships and expertise

Convenience of our nationwide access

Secure technology infrastructure

Looking forwardTo a future of transforming the customer

experience through data, infrastructure,

and technology

World’s third-largest IT infrastructure

Upgrading vehicle fleet

Deployed 263,000 new Mobile Delivery Device

(MDD) scanners nationwide

Upgrading retail POS systems and kiosks

Thank you