1. August 23, 2017

2. Agenda Agenda Welcome and Call to Order
Badge Office Logistics and Other Administrative Notes
Financial Update Luke Grossmann, VP, Finance & Planning
New Representatives and New Association Names
Close Out   1

3. Focus Groups FOCUS AREA  Mail Prep & Entry, Operations
(Cintron/Rosser)
Enterprise Analytics/
Data Usage
(Cronkhite/ Anagnostopoulos)
Payment &
Acceptance, Education
(Mehra/ Schimek)
Product
Innovation/Emerging Technology
(Reblin/Colella)
9:00 am –10:15 am
Periodicals 1/Stumbo
Room 7801
First-Class 2/Tate
Ben Franklin Room
USPS Marketing Mail 3/Flanagan
Room 1P410
Packages 4/Medeiros
Room 4841
10:30 am – 11:45 am
Packages 5/Medeiros
USPS Marketing Mail 6/Flanagan
Periodicals 7/Stumbo
First-Class 8/Tate
LUNCH (11:45 AM – 1:00 PM)
1:15 pm – 2:30 pm
USPS Marketing Mail 9/Flanagan
Packages 10/Medeiros
First-Class 11/Tate
Periodicals 12/Stumbo
2:45 pm –
4:00 pm
First-Class 13/Tate
Periodicals 14/Stumbo
Packages 15/Medeiros
USPS Marketing Mail 16/Flanagan 2

4. Financial Results Quarter 3 of FY2017
Luke Grossmann
Vice President, Finance & Planning

5. Q3 Financial Results (Quarter Ended June 30, 2017)
1 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses.
2 - Quarter 3 has the same number of delivery and retail days compared to SPLY.
3 - Effect of 18% increase in RHB normal cost due to OPM changes to demographic assumptions and lower discount rate.
4 - FERS is an estimate and subject to change once we receive the bill.
5 - FY2016 data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

6. FY2017 June YTD Financial Results
1 - Temporary exigent surcharge expired April 10, 2016.
2 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses.
3 - June YTD has one less delivery and retail day compared to SPLY.
4 - Effect of 18% increase in RHB normal cost due to OPM changes to demographic assumptions and lower discount rate.
5 - FERS is an estimate and subject to change once we receive the bill.
6 - FY2016 data on prepaid postage resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

7. Actual versus SPLY FY2017 June YTD Volume
(Pieces – Millions)
117,000
116,877
(4.1)%
FCSP = (6.6)%
FC Presort Ltrs & Other = (2.9)%
116,500
2.9B Pieces
116,000
-1,931
115,500
(1.8)%
115,000
114,500
-1,071
(2.4)%
11.0%
2.3%
(24.9)% 17
114,017
(4.9)%
-95
114,000
-210
SPLY FC
Marketing MailMarketing Mail
Periodicals
Shipping & PackagesShipping & Packages
International
Other
Actual
June YTD has one less delivery and retail day compared to SPLY.

8. Marketing MailMarketing Mail Shipping & PackagesShipping & Packages
Actual versus SPLY FY2017 June YTD Revenue Excluding Exigent Surcharge
($ – Millions)
$465M
0.9%
6.8%
$53,182
53,200
(0.5)%
12.8%
$190
53,000
-$10
52,800
$52,717
(4.8)%
FCSP = (6.4)%
FC Presort Ltrs
& Other = (4.0)%
52,600
52,400
52,200
-$1,000
$1,686
52,000
51,800
(2.5)%
51,600
-$325
(6.7)%
51,400
-$75
SPLY FC
Marketing MailMarketing Mail
Periodicals
Shipping & PackagesShipping & Packages
International
Other
Actual
Revenue before change in accounting estimate in FY2016 which resulted in a $1.1B decrease in the liability for deferred revenue - prepaid postage and a corresponding increase in revenue.

9. June YTD has one less delivery and retail day compared to SPLY.
Shipping & Package Volume: FY2017 June YTD vs. SPLY
June YTD has one less delivery and retail day compared to SPLY.
FY2016
3.9B
FY2017
4.3B
First-Class Pkg Svc
& FCM Parcels
Priority Mail Express
& Priority &
USPS Retail Ground
Package
Services
Parcel Select
& Return
& Marketing Parcels
0.4B

10. June YTD has one less delivery and retail day compared to SPLY.
Shipping & Package Revenue FY2017 June YTD vs. SPLY:
(Excluding Exigent Surcharge in 2016)
June YTD has one less delivery and retail day compared to SPLY.
FY2016
$13.1B
FY2017
$14.8B
$1.7B
First-Class Pkg Svc
& FCM Parcels
Priority Mail Express
& Priority &
USPS Retail Ground
Package
Services
Parcel Select
& Return
& Marketing Parcels

11. Controllable Expenses
1, 2
1 - June YTD has one less delivery and retail day compared to SPLY.
2 - Before RHB pre-funding/amortization & actuarial revaluation, non-cash adjustments to workers’ compensation liabilities and FERS and CSRS unfunded liabilities amortization, which are excluded from controllable expenses.

12. New Association Members
New Association Representatives:
Jessie Laybourne-Ross: National Retail Federation
Scott Holton: American Bankers Association
Holly Kozlencer: Gravure Association of the Americas
Kathleen Siviter: News Media Alliance
David Day: NPES – The Association for Suppliers of Printing, Publishing & Converting Technologies
John Millet: American Association of Political Consultants (AAPC)
Joseph Hillyer: Classroom Publishers Association 11

13. August 23, 2017