UPS Project Briefing Deck 30 August 2016

PROBLEM TOP CUSTOMER PAIN POINTS IN THE UK ARE: DELIVERY DATE / TIME NOT MET UNACCOMMODATING ASSOCIATES AIR CARGO PICK-UP FEE IS TOO EXPENSIVE “Tatlong beses akong tumawag bago napickup yung box na nagpaschedule.” “It’s very very late yung pickup. Naghintay pa kami buong araw. Wala naman sinabi na gabi na 9PM.” “Hindi maayos ang pick-up nya kasi yung time matagal, walang specific time. Two weeks pa ang inabot bago napick-up, nakaka-frustrate.” “Masasabi ko lang na yung nagpipick-up na si Chris ang tagal nyang pick-upin. 3 weeks ako naghintay kasi nasira daw ang sasakyan.” Source: LBC Customer Satisfaction Survey (Jan-June 2016); Facebook Inquiries June 2016

Increased Customer Convenience SOLUTION LBC-UPS Partnership that provides an EFFICIENT RETURNS PROCESS, where UPS delivers and picks up customer boxes for LBC. This helps increase customer convenience which can lead to increased sales and gives improved control of the returns costs. How we did in 2015 2016 Strategy and How were doing? Service Culture Increased Control Increased Customer Convenience Increased Sales Reduced Costs

LBC Balikbayan Box at Customer House Box Delivery or Pickup Request SOLUTION LBC-UPS Returns Solutions LBC Office LBC Balikbayan Box at Customer House Box Delivery or Pickup Request The next business day: DELIVERY: UPS gets box and delivers PICKUP: UPS picks up box from customer The UPS Partnership will help us grow the business by improving over-all customer experience through convenient returns solutions that differentiates us from competition. The UPS Returns Solutions will give our customers more control of how, where and when returns transactions will take place, reducing the cost of inbound operations (customers calling us for follow-ups) thereby improving efficiency of our logistic processes. Our customers rely on us to have an efficient and convenient returns strategy at hand when things do not turn out as expected. The UPS Partnership will provide customers a balanced approach to speed and convenience in delivering services to our customers.

LBC-UPS RETURNS SOLUTIONS Process Flow & Customer Experience CUSTOMER CALLS TO BOOK DELIVERY OF AN EMPTY BOX On the next business day, UPS picks up EMPTY BOX with the LBC Packing List, UPS Shipment Label from LBC Warehouse UPS delivers to the Customer House: Customer to receive email/SMS notification regarding scheduled delivery Giving customers control to manage their time while anticipating the delivery In case of MISSED DELIVERY, UPS to do 1-3 attempt/s before it is sent back to LBC for rebooking with Customer. Customer also has the option to choose the nearest UPS Access Point for deliveries. Sample Pre-Print Return Label

LBC-UPS RETURNS SOLUTIONS Process Flow & Customer Experience CUSTOMER CALLS TO BOOK PICK-UP OF A FILLED UP BOX On the next business day, UPS picks up the filled up BALIKBAYAN BOX with the completed LBC Packing List and attached UPS Return Label from LBC UPS arrives at the Customer House: Customer to receive email/SMS notification regarding scheduled delivery Giving customers control to manage their time while anticipating the pick-up In case of MISSED PICK-UP, UPS to do 1-3 attempt/s before it is reported back to LBC for rebooking with Customer. UPS Returns Solutions allows LBC to initiate the collection (upon request of customers), putting you in control of when the return process begins. As the collection is initiated by LBC, the service becomes more convenient for the customer vs previous setup with Contractors: The driver will show up at the customer’s address with the returns shipping label to collect the box. No admin work required from the customer.

LBC-UPS RETURNS SOLUTIONS Process Flow & Customer Experience FOR AIR CARGO, CUSTOMER HAS AN OPTION TO DROP OFF THE BOX AT A NEARBY UPS ACCESS POINT ACCESS POINT is a selected shop, supermarket or petrol station which is open 7 days a week from early morning till late allowing customers to drop off or collect parcels directly at their leisure 3,000 UPS Access Points in the UK as of August 2014 and expected to be 11,000 by YE 2016 Saves customers time waiting in all day for an order as they can drop it off at their leisure from 6am to 11pm at most Access Points 7 days a week Real time tracking of each Shipment as it moves overnight through the UPS network with email notifications to keep customers informed Saves us returns cost of rescheduled bookings UPS Returns Solutions allows LBC to initiate the collection (upon request of customers), putting you in control of when the return process begins. As the collection is initiated by LBC, the service becomes more convenient for the customer vs previous setup with Contractors: The driver will show up at the customer’s address with the returns shipping label to collect the box. No admin work required from the customer.

LBC Large Balikbayan Box £10 deposit (deductible during collection) £10 Once Access Point is selected, a map is shown prompting the customer to enter their POST CODE; an interactive map is provided by UPS IT to add to the LBC website CUSTOMER IS UPDATED EVERY STEP OF THE WAY: Customer will receive an email once the package has been collected from the Access Point Customer will also receive a “ready to collect” email within 15minutes of empty box being delivered to their selected Access Point (with AP address and opening times) Customer can use links on the email we will send to them to go directly to the website and track live progress of shipment Customer needs to collect the empty box within 10 calendar days from the Access Point by showing a photo id (driving licence or any other ID) and the box is then scanned. The Access Point agent takes a signature from the customer which is uploaded to the systems as proof of delivery within 24hours. Customer also to receive an reminder email once it has passed 5 calendar days and they haven’t collected their box from the Access Point, and also an email on the 10th calendar day. After 10 days UPS to return the box back to LBC. API can be integrated to our system to enable online bookings. At checkout, customers will be given two options for shipping – Home Delivery or Collection Delivery via Access Point

LBC-UPS RETURNS SOLUTIONS What are the Benefits of this Partnership? Addresses our Top 2 Customer Pain Points in the UK: Unaccommodating Associates and Delivery Date/Time not Met; and expensive pick-up fees for Air Cargo IMPROVES OVER-ALL CUSTOMER EXPERIENCE ALIGNED TO OUR CORPORATE STRATEGIES TO INNOVATE AND DRIVE VALUE TO THE ORGANIZATION First of its kind in LBC and the industry, and can be easily rolled out to our Europe / Global Operations NEEDED TO IMPROVE OUR OPERATIONAL EFFICIENCIES Helps us achieve our Delivery / Pick-up Efficiency targets especially for the Countryside LOWERS OUR COSTS & HAS REVENUE IMPACT Has attributable cost savings and revenue impact (please refer to next slide for details)

LBC-UPS RETURNS SOLUTIONS Proposed Timelines Phase 1: From Sep 2016 Air Cargo via UPS (UK-wide) Sea Cargo Medium Bundle via UPS (London only) Phase 2: From Jan 2017 Enhanced Air Cargo via UPS (UK-wide) Sea Cargo via UPS using Medium Bundle (UK wide)

LBC-UPS RETURNS SOLUTIONS Sea & Air Cargo Offer Details DETAILS CURRENT PROPOSED Cost / Savings SEA CARGO: £50-55-60-65 rates for Medium Boxes via Sea Cargo AIR CARGO: £45 for the 1st 5kgs and £7 per kg for 6kgs and above; BB15 rates at £115 (Metro Manila, £120 (Luzon), £125 (Visayas and Mindanao) SEA CARGO £70 for 2 Medium Boxes to anywhere in the Philippines with maximum weight of 30kgs per box; Customer can add another bundle of 2 Medium boxes if needed Potential incremental volume via push of more affordable/faster TAT Medium boxes in the Countryside AIR CARGO £50 for 1st 5kgs and £8 per kg for 6kgs and above Speed / Time of Delivery Weekly but fixed schedule depending on customer post code (For London) 1-2 weeks with high incidence of “reschedules” especially when volume is too low (For Countryside) Air Cargo not pushed thru Contractors due to the very prohibiting cost of Commission Fees and inability to pick-up faster (crucial for Air Cargo) Faster TAT with next business day delivery / collection (No need to schedule based on post code) Limitations Delivery/Pick-up schedules dependent on volume or demand (For Countryside) Unable to collect Large boxes due to weight; need to set weight limit at 30kgs for a Medium box Impact to Service Unable to aggressively push Air Cargo especially in the Countryside Customers unhappy with too many rescheduling of Contractors Promos not launched in Countryside due to high cost of commission fees Ability to aggressively push Air Cargo UK wide because of the huge cost savings Volume push for Sea Cargo using Medium boxes Faster TAT for Countryside customers

END OF PRESENTATION