Janet LeBlanc Director, Canada Post --------------------------------------------------------------------------

Price Performance Profile --------------------------------------------------------------------------

Value Map --------------------------------------------------------------------------

Value Scorecard --------------------------------------------------------------------------

Head-to-Head Comparisons (Average) --------------------------------------------------------------------------

Conduct Baseline Study Business Process Improvement On-going Identify Value Drivers Measure Value Creation After Transaction Develop Action Plans Measure Market Perception feedback -------------------------------------------------------------------------- Conduct Baseline Study Business Process Improvement On-going Transactional Surveys On-going Market Surveys

The Value Proposition Deployment Process Plan/Do/Check/Act Define/ Refine Value Proposition Build Commitment To Value Proposition Process & Organization Gap Analysis Changes To Deliver Value Proposition Internal Tracking & Measurement Tracking Market Impact The Value Proposition Deployment Process -------------------------------------------------------------------------- Plan/Do/Check/Act Internal Management/ Staff Group of Companies

Customer Value Yields Big Dividends Wireless Telecom Company Heavy Equipment Dealership Underground Mining Equipment Manufacturer / Distributor International Health and Leisure Firm Reclaimed more than $8mm in lost sales 30% improvement in on-time deliveries Improved margins on equipment repairs from 11% to 28% Doubled sales revenue – from $250M to $500M+ Tripled market share in a strategically important market: 4% - 12% Increased employees from 600 to 1000+ Achieved record profitability last year Doubled profits in a single year Moved from being a market “nicher” to the market leader 50% reduction in customer churn Improved equipment delivery time from 10 days to 2 days Total estimated bottom line contribution = $4.5M -------------------------------------------------------------------------- Source: Adapted from Customer Satisfaction in Practice by the American Productivity & Quality Center, 1998

Retention Acquisition Positive Turnover Employee Value The Right Workforce” MODELING EMPLOYEE VALUE Retention Acquisition Positive Turnover Employee Value -------------------------------------------------------------------------- Relative Compensation Relative Job Quality Base Salary Pay Equity Bonus Benefits Manager Quality Brand Equity Work Life Balance

The “Value” of Customer Value Strengthen value propositions – value is the basis for customer decisions Identify responses with the greatest impact on customers’ future purchase behaviour Hone in on winning client strategies Discipline and focus—across all functions Dramatic impacts and performance gains The key to attracting, satisfying, and retaining customers. --------------------------------------------------------------------------

November, 2003 --------------------------------------------------------------------------