INTRODUCING THE ROYAL MAIL GROUP ADVERTISING MAIL CHRISTMAS INCENTIVE HELPING YOUR CLIENTS TO REACH MORE OF THEIR CUSTOMERS FOR LESS THIS CHRISTMAS November 2018

What we would like to cover today What is the Christmas Incentive What are the key metrics Key information How to apply for this incentive

What is the Wholesale Royal Mail Christmas Incentive Offer? We want to help your customers spread the Christmas cheer by sending a Christmas period offer, discount or voucher for as little as 10p per item Wholesale postage price per item Available for mailings delivered from the 19th November to the 28th December, allowing customers to take advantage of Black Friday and Cyber Monday as well. Communicating with customers at Christmas is a great way to show them they are appreciated and hopefully encourages your customers to do more business with you.

With reduced postage costs your clients can reach more customers [This is illustrative. Please replace the postage rates with your own prices and the impacts to tailor the calculations to your customer] Standard Advertising mail rate Christmas Incentive rate Wholesale postage 16.9p 10p Upstream, print and production (estimate) 20p TOTAL cost per item 36.9p 30p Customers reached with incremental £25k budget * 67,751 83,333 Volume multiplier x1.23 *For illustrative purposes only Wholesale Christmas Incentive rate is 10p (c.6.9p cheaper than Wholesale Advertising Mail) Example: customer sends an extra £25k worth of advertising mail using the Christmas incentive to reach a 23% larger audience than before.

Boost your clients’ ROI without increasing campaign costs Assumptions Standard Advertising Mail rate Christmas Incentive Rate Test volume 67,751 83,333 Example response rate 1.00% Number of responders 677 833   Wholesale postage price £0.17 £0.10 Estimated upstream, print and production £0.20 Cost per item £0.37 £0.30 Total campaign cost £25,000 Example contribution per response £50 Total contribution £33,875 £41,667 Profit/Loss £8,875 £16,667 ROI £1.36 £1.67 * Examples shown for illustrative purposes only With 23% more customers being targeted at a lower cost per item your customer can boost their campaign ROI

Key information about this incentive For letter format items sent using Mailmark. For mailings handed over to Royal Mail between 19/11/18 and 28/12/2018. Last application date is 20/12/2018. Available for letters sent in envelopes, single piece mailers* and postcards* Post at least 40,000 incremental items to qualify. 40K items Letters must be handed over in trays to ensure sorting is quick and easy. Discounts paid as postage credits that will be valid for 12 months * Restrictions apply for postcards and single piece mailers to ensure efficient processing For further information please visit https://royalmailwholesale.com/christmas-2018

How to apply The end customer or their agent on their behalf, download and complete the simple one page application form at https://royalmailwholesale.com/christmas-2018 End customer or their agent email the completed application form and evidence of incremental volume to groupincentive@royalmail.com Please include the following evidence to demonstrate incremental volume: 12-month mailing/campaign plans dated before and after the announcement of the incentive showing volume that was in plan; and Dated internal communication showing the decision- making process agreeing to use the incentive; or internal business case showing an increase in advertising budget to accommodate more volume; OR If you do not have any of the above, we require an email from a director of the company confirming that the volume is incremental and that it is only being posted because of the incentive.