1. © 2010 Deloitte LLP The Changing Commerce and Communication Landscape February 2011

2. © 2010 Deloitte LLP Postal Industry (Past) Products ordered through the mail Bills paid through the mail Direct marketing promoted products through unaddressed mail Catalogues sent through the mail Mail used for: o Business Communication o Personal communication o Advertising material o Promotions and coupons o Magazines Email use not widespread 2 CommerceCommunication

3. © 2010 Deloitte LLP Revenue Mix Example: 2003 3 Source: Annual Reports POSTAL OPERATOR REVENUE MIX SELECTED POSTAL OPERATORS- 2003 ANNUAL REPORT REVENUE

4. © 2010 Deloitte LLP Commerce Evolution- Shift to eCommerce eCommerce is: A consumer focused value chain aimed to influence cross border commerce An area where Posts can act as facilitators of commerce Postal eCommerce is: A subset of eCommerce activities that Posts can facilitate through their geographic reach, supply chain capabilities, and trusted names A unique solution tailored to the strengths and competencies of each Post A progression from a Postal Operator focusing on traditional core services into a Complete eCommerce Provider offering customer-focused eCommerce solutions to small, medium, and large businesses 4

5. © 2010 Deloitte LLP Communication Evolution- Shift Away from Mail Shift from addressed mail to email, text messages, instant messages Emergence of social media Increased internet connectivity 5 Alternate Modes of Communication

6. © 2010 Deloitte LLP Examples of Social Media 6 Wikis Blogs Social networking RSS (Real simple syndication) Presence & micro blogging Social bookmarking and tagging Online photo and video sharing/ audio Messaging

7. © 2010 Deloitte LLP Push and Pull Communication Model eTailers Push Social Media Pull Customer Many of the messages sent by retailers to potential customers are being blocked by spam filters. Consumers are now using alternative communication methods, such as social media, to pull information that is relevant to them. This new communication model changes the way that retailers and customers interact. Email Mail SMS Pop-Ups Web Ads Big Retailer Small Retailer Inter- national Retailer Local Retailer Nation- wide Retailer Specialt y Retailer New Communication Model

8. © 2010 Deloitte LLP Postal Industry (Present) eCommerce Increase in online bill pay Increased use of autopay Increased hybrid mail options Shift to online advertisements o Banners o Pop-ups o Spam emails Businesses using new ways to target, market, and promote products/services to consumers Email o 247 billion email/day sent on average in 2009 SMS o 5.8 billion subscribers projected by 2013 o SMS text messaging is most widely used data application in the world, 2.4 billion active users Social Media o Facebook has over 500 million users o More than 65 million users access Facebook through mobile devices 8 CommerceCommunication

9. © 2010 Deloitte LLP Postal Commerce and Communication Innovations Postal Organization ProductsDescription Easy online access Australia Post provides online access to mailing via its shipping services portal. Consumers input shipping details (e.g., contents, weight, size, value etc.) and destination details. The customers then print the paperwork and mail the item. Quick online access “Borderfree” run by Canada Post, allows Canada’s online customers to accurately calculate the cost of shipping goods ordered from the US. Canada Post further facilitates this trade by allowing US retailers to send the goods to a US “hub”, where Canada Post collects and delivers the items to the buyers. Stamps through SMS Deutsche Post (Germany) developed a tool called Handyporto which enables customers to receive a 12-digit number through text messaging, which can be used in place of a postal stamp. Secure email Swiss Post provides a digital signature SwissPostCertificate which can be linked to a passport or ID card, enabling users to send and receive electronic letters confidentially. This service is aimed primarily at the public sector and business customers operating in the financial and insurance market. Proof of delivery TNT (Netherlands) provides online proof of delivery images (receiver’s signature or company stamp with date and time of delivery) from 85 countries as a part of its track and trace service. SMS instant tracking USPS has gone mobile through the launch of a device-optimized Wireless Application Protocol (WAP) site, allowing customers to use popular functions such as Track & Confirm, Post Office locator, and Zip code lookup on their phones. Source: Websites, Strategy & Market Insight Newsletter (Media Mail) 2010

10. © 2010 Deloitte LLP Growth in Parcels Increased internet connectivity has led to a growth in online purchases and parcels. 10 Top 10 US Export Destinations Percent of US Export Shipments Percentage of Population Using the Internet Canada19.9%77.7% Mexico12.6%27.2% China6.7%31.6% Japan4.8%78.2% United Kingdom4.0%82.5% Germany3.8%79.1% South Korea3.1%81.1% Brazil2.7%37.8% Netherlands2.7%88.6% Singapore2.3%77.8% France2.0%68.9%

11. © 2010 Deloitte LLP Postal Industry (Future) Secure transaction o Verified user and sender o Secure email portal Posts as eCommerce facilitators o UPU “.post” domain o Posts as eCommerce portals: eMalls, comparison shopping sites, website designers, direct marketing consultants, etc Further mail volume decline o -4% annual decline predicted o By 2020 it is estimated the mail volume will have declined to 50% of its peak volume in 2006 Email spam will increase: o 200+ billion spam emails sent daily o 22% of consumers stopped buying from companies because of too many or irrelevant emails SMS spam will increase: o U.S. consumers received an estimated 1.5 billion spam SMS text messages in 2008, up from 800 million in 2006 and 1.1 billion in 2007 Social media spam will increase: o Facebook is one of the most phished websites Consumers will block unwanted messages (push messaging) Businesses will look for new forms of communication to advertise their products and services 11 Commerce Communication

12. © 2010 Deloitte LLP Contact 12 Daryl Jackson Djackson@deloitte.com Washington, DC Daniel Laniado Dlaniado@deloittemx.com Mexico City