INTRODUCING THE ROYAL MAIL GROUP ADVERTISING MAIL CHRISTMAS INCENTIVE HELPING YOU TO REACH MORE OF YOUR CUSTOMERS THIS CHRISTMAS FOR LESS 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 you spread the Christmas cheer to your customers. Send a Christmas period offer, discount or voucher for as little as 10p Wholesale postage price per item (excluding carrier costs, print and production). Available for mailings delivered from the 19th November to the 28th December, allowing you to take advantage of Black Friday and Cyber Monday as well. Communicating with your customers at Christmas is a great way to show them they are appreciated and hopefully encourages them to do more business with you.

With reduced postage costs you can reach more customers Wholesale Advertising Mail Price Wholesale Christmas Incentive Price Wholesale postage 16.9p 10p Upstream, print and production cost (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 price is 10p (c. 6.9p cheaper than Wholesale Advertising Mail price) Example: If you send an extra £25k worth of advertising mail using the Christmas incentive you can reach 23% more customers than before.

Boost your ROI without increasing your campaign costs Assumptions Wholesale Advertising Mail price Wholesale Christmas Incentive Price 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 you can boost your 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 Either directly or through an agent, download and complete the one page application form at https://royalmailwholesale.com/christmas-2018 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.