1. N ORTHEAST A REA I NDUSTRY F OCUS G ROUP N EW Y ORK, NY Edward Phelan Vice President Delivery Operations

2. DELIVERY TYPE UPDATE

3. ® 3 Delivery Trends Gradual decrease of 0.2% per year over 8 year cycle Other modes of delivery have increased with new growth

4. ® 4 Curb / Centralized Delivery

5. ® 5 City Routes Over 4 million additional deliveries 3.29% growth rate While still reducing number of routes Cost reduction Reduction in other us more of a reflection of growth in central and curb Still only voluntary to change delivery mode

6. ® 6 Delivery Attributes for Packages Carriers scan where they leave the package

7. ® 7 Benefits of Centralized Delivery Increased efficiencies and cost savings Increased security at the mailbox with locking doors Less rolling and folding of large mail pieces Built in parcel lockers leads to more successful first attempt deliveries Fewer trips to the post office to retrieve left notice items

8. FUTURE OF DELIVERY

9. ® 9 Mailbox of the Future Urban mailboxesSuburban mailboxes Currently in pilot testing Fits 2 large priority boxes along with other mail

10. ® 10 Mailbox of the Future Signups Suburban Suburban: Four pilot routes First Box installed on 12-18-14 298 Customers have registered for the NG Mailbox 201 have been installed Customer feedback: “This is amazing. I don’t have to go to the PO anymore. “I’ve been making more online purchases because the mailbox is so convenient.”

11. ® 11 Mailbox of the Future Signups Urban Urban: Four pilot sites Four boxes installed as of 2/11 28 customers have registered for the NG Mailbox Weather has delayed some of the installations Boston, MA Installs

12. 12 Conceptual Mailbox Design

13. ® 13 Variety of Design Options Blend into the feel of a neighborhood Allow convenient and secure pickup options Keyless (solar or hardwired power) Available 24/7

14. ® 14 New and Future Technology New and Future Technology Premium Forwarding Service MetroPost Afternoon or all day delivery Notifications when mail is available my.usps.gov Through text or email Multiple options for receiving mail GoPost Flexibility for afternoon package pickup Keyless lockers

15. 15 Other Parcel Locker Solutions United States Amazon Locker Located in major US cities Emailed or texted code. No preregistration No keys or cards Secure retail locations such as 7-Elevens and grocery storesFrance Cityssimo 2,500 lockers 31 cities Smartcard with preregistration Retail sites and dedicated storefronts Germany Packstation 2,650 lockers 1,600 cities Smartcard and PIN with preregistration Street fronts, railway stations, supermarkets, gas stations

16. ® 16 Grocery Delivery Deliveries arrive in convenient insulated totes Customers schedule delivery windows throughout the day Other deliveries to the address can be combined

17. ® 17 Menu Delivery Delivery of meal ingredient packages with recipes Deliver anytime during the day 24-48 hour chill chain 750 pieces per day of 15-18lbs each Free shipping for customers

18. ® 18 Fish and Flower Delivery In New York City Delivering fresh and frozen seafood from Fulton Fish Market to restaurants Dropped at 6 AM for delivery by 11:30 Testing to monitor condition and temperature of delivered items.

19. ® 19 Water Delivery With Nestle: Testing water/liquid delivery in New York City Collect product at 11:30 AM for next day delivery Delivered 99 cases during the last test Currently delivering Delivery Monday through Friday

20. ® 20 Mail My Way My Mail Way is the new USPS concierge service Customers can have a carrier pick-up unpackaged item(s) and ship directly to the recipient. Door-to-door shipping option for small business and residential Four variations of service during the pilot Standard Delivery 1-3 days Next Day Delivery Same Day Delivery (to local ZIP codes only) USPS Courier Service (to local ZIP codes only)

21. ® 21 Additional Initiatives 1-800 Flowers New York City Collection twice daily at 10:30am and 2:00pm Will pilot in 3 zones when the vendor is ready