Chief Operating Officer Baltimore CAPITAL METRO Area Focus Group Northern Virginia Capital Richmond Greensboro Mid-Carolinas Greater South Carolina Atlanta David E. Williams Chief Operating Officer

Agenda Opening Remarks Service Performance Operations Update Capital Metro Area Focus Group Agenda Opening Remarks Service Performance Operations Update MTE Update Questions & Answers

Thank You for Your Participation In This valuable process Capital Metro Area Focus Group Thank You for Your Participation In This valuable process Value of the Area Mailer Industry Focus Groups: Forum to Communicate Operational Changes Provides a Forum for Crucial Feedback / Suggestions / Ideas Builds Critical Relationships at All Levels of the Organization Immediate Issue Resolution

Service Performance Update Capital Metro Area Focus Group Service Performance Update

First-Class Composite (Letters/Flats) YTD Q2TD Actual 93.08 92.68 SPLY Var +1.89 +2.70 96.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 94.35% 94.43% 91.87% 92.68% +5.00 Q3 FY15 +2.55 Q4 FY15 +1.96 Q1 FY16 +2.70 Q2 FY16 Data through March 03, 2017 Letters/Flats & NPA excludes some 5-digit Zips

Marketing Mail / Periodicals Composite Trend YTD Q2TD Actual 90.59 92.08 SPLY Var +3.59 +4.01 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 N/A 89.69% 92.08% N/A Q3 FY15 N/A Q4 FY15 +3.26 Q1 FY16 +4.01 Q2 FY16 Data through March 03, 2017

Marketing Mail YTD Q2TD Actual 90.19 91.48 SPLY Var +4.51 +4.42 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 92.06% 92.37% 89.30% 91.48% +4.83 Q3 FY15 +5.47 Q4 FY15 +4.51 Q1 FY16 +4.42 Q2 FY16 Data through March 03, 2017

Marketing Mail DSCF Letters YTD Q2TD Actual 94.74 95.99 SPLY Var +2.05 +3.04 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 96.76% 96.64% 93.85% 95.99% +3.31 Q3 FY15 +2.96 Q4 FY15 +1.33 Q1 FY16 +3.04 Q2 FY16 Data through March 03, 2017 Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

Marketing Mail DSCF Flats YTD Q2TD Actual 88.53 91.10 SPLY Var +8.56 +6.21 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 91.25% 91.20% 87.05% 91.10% +5.34 Q3 FY15 +7.08 Q4 FY15 +9.71 Q1 FY16 +6.21 Q2 FY16 Data through March 03, 2017 Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

Marketing Mail DNDC Letters YTD Q2TD Actual 94.44 95.44 SPLY Var +2.76 +3.77 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 95.80% 95.75% 93.73% 95.44% +3.68 Q3 FY15 +3.13 Q4 FY15 +2.05 Q1 FY16 +3.77 Q2 FY16 Data through March 03, 2017 Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

Marketing Mail DNDC Flats YTD Q2TD Actual 89.58 91.68 SPLY Var +4.15 +2.96 91.00 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 93.62% 93.01% 88.14% 91.68% +6.30 Q3 FY15 +5.72 Q4 FY15 +4.84 Q1 FY16 +2.96 Q2 FY16 Data through March 03, 2017 Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

Periodicals YTD Q2TD Actual 83.39 85.59 SPLY Var +7.38 91.00 Q3 FY16 82.70% 83.66% 81.83% 85.59% +4.35 Q3 FY15 +6.13 Q4 FY15 +7.49 Q1 FY16 +7.38 Q2 FY16 Data through March 03, 2017 Notes: Includes Letters, Flats and Parcels. Data through December 31, 2016

Continuous Improvement Focus Service Performance Summary Continuous Improvement Focus Mitigate Air Capacity Constraints Align and Optimize Surface Transportation Reduce WIP Cycle Times Focus on Last Mile Opportunities Intense Focus on Vital Few Opportunities Ensure Employee & Industry Engagement

OPERATIONS UPDATE National Operations Command Centers Capital Metro Area Focus Group OPERATIONS UPDATE National Operations Command Centers

Network Operations Command Centers (NOCCs) Issue Response Detailed data flags potential issues in real-time for faster response and mitigation Cross-Functional Staff includes Transportation, Processing and Maintenance roles Mission Control NOCCs in every area and HQ enhances inter-Area communication and gives state-of-the-art visibility into end-to-end Network Operations

NOCC Mission and Capabilities DE Constant Communication Daily telecons between HQ and Area NOCCs Open communication between Area NOCCs Real-Time Data and Monitoring Cross-Area visibility to mitigate cross-Area risks Visibility into volume data to assist Areas with maximizing efficiency Ability to identify opportunities to help field sites meet the operating plan Real-time maintenance support and ticket escalation Sample NOCC Applications FLAPS MHE Monitoring Site Level APPS PMCC

Network Operations in the Future Data Systems Technology New applications of digital tracking tools Mobile devices at the unit level Future USPS of Real-time tracking of trailers via GPS Visibility into the global post network

Capital Metro Area Focus Group MTE UPDATE

USPS Has Spent $40M YTD on MTE New Buys MTE Inventory USPS Has Spent $40M YTD on MTE New Buys Plastic Trays and Sleeves, Pallets, Plastic Flat Tubs and Sacks MTE Inventory Available today 14.3 Million EMM Trays & Sleeves 11.5 Million MM Trays & Sleeves 7 Million Half-Trays & Sleeves 1.3 Million Pallets 4.5 Million Flat Tubs 4.3 Million Sacks 1.4 Million Sacks on order

USPS – Industry Collaboration Partnership USPS – Industry Collaboration Exchange Ideas & Preempt Issues Area Mailing Industry Focus Groups MTAC PCC Meetings NPF Drive Innovation and Adopt Technology Committed to Collaboration/Communication Opportunities: Area Mailing Industry Focus Groups – Calendar by Area https://ribbs.usps.gov/index.cfm?page=periodicalsfocus http://postalpro.usps.com/industry-forum/area-mailing-industry-focus-group/calendar Growing Together NPF 2017 – Baltimore, MD May 21-24 http://www.npf.org https://ribbs.usps.gov/index.cfm?page=mtac MTAC – Meet Quarterly

Summary Our Commitment Capital Metro Area Focus Group Service Excellence Proactive Communications Transparency

Capital Metro Area Focus Group Thank You Questions? 22