1. Northeast Area Mailing Industry Focus Group February 25, 2015 New York, NY

2. Northeast Area Quarter 1 Operations Political Mail Fall Mailing Peak Operations

3. Peak Season Fall Mailing Season Columbus Day Veteran’s Day Thanksgiving “Black Friday” Christmas Day Election Day NEA – Q-1 On-Hand Volumes Actual October – December 2014

4. National Quarter 1, FY 2015 100 - 90 - 80 - 70 - 60 - 50 - October 1,2014 through December 31, 2014 96.05 95.89 Target 96.80 % On-Time

5. 100 - 90 - 80 - 70 - 60 - 50 - 95.48 Target 96.50 95.20 % On-Time October 1,2014 through December 31, 2014 National Quarter 1, FY 2015

6. 100 - 90 - 80 - 70 - 60 - 50 - 91.84 Target 95.25 93.24 % On-Time October 1,2014 through December 31, 2014 National Quarter 1, FY 2015

7. 100 - 90 - 80 - 70 - 60 - 50 - 91.42 Target 91.00 90.07 % On-Time 79.66 74.60 October 1,2014 through December 31, 2014 National Quarter 1, FY 2015

8. 100 - 90 - 80 - 70 - 60 - 50 - 91.14 90.85 % On-Time 84.76 84.42 Target 91.00 October 1,2014 through December 31, 2014 National Quarter 1, FY 2015

9. 100 - 90 - 80 - 70 - 60 - 50 - 83.89 84.02 % On-Time Target 90.00 October 1,2014 through December 31, 2014 National Quarter 1, FY 2015

10. Northeast Area Quarter 1 Performance

11. Northeast Area Quarter 1, FY 2015 100 - 90 - 80 - 70 - 60 - 50 - October 1,2014 through December 31, 2014 95.55 95.40 Target 96.80 % On-Time

12. 100 - 90 - 80 - 70 - 60 - 50 - 95.62 Target 96.50 94.71 % On-Time October 1,2014 through December 31, 2014 Northeast Area Quarter 1, FY 2015

13. 100 - 90 - 80 - 70 - 60 - 50 - 92.01 Target 95.25 93.33 % On-Time October 1,2014 through December 31, 2014 Northeast Area Quarter 1, FY 2015

14. 100 - 90 - 80 - 70 - 60 - 50 - 89.42 Target 91.00 85.10 % On-Time 74.67 64.28 October 1,2014 through December 31, 2014 Northeast Area Quarter 1, FY 2015

15. 100 - 90 - 80 - 70 - 60 - 50 - 85.36 82.30 % On-Time 79.3174.60 Target 91.00 October 1,2014 through December 31, 2014 Northeast Area Quarter 1, FY 2015

16. 100 - 90 - 80 - 70 - 60 - 50 - 81.95 81.10 % On-Time Target 90.00 October 1,2014 through December 31, 2014 Northeast Area Quarter 1, FY 2015

17. USPS Leadership Forum for Stakeholders

18. PEAK Season 2014  Supplemental Staffing  Mail Processing Equipment and Space  We positioned ourselves for success by making investments in: investments in:  Transportation  Scanning Technology  Vehicles  Expanded Sunday Processing  Retail Technology  Expanded Delivery Window  Very Successful 2014 Peak Season

19. Peak Season 2014  463M Pieces of Mail Delivered in December  Cancellations down 4.4% to SPLY  524M Packages Delivered in December  18% Increase over SPLY  20M Packages Delivered on 5 Sundays

20. Northeast Area Peak Season Package Delivery

21. Operation Santa

22. Financial Results

23. Volumes: FY2015 vs. SPLY Volumes: FY2015 vs. SPLY

24. Revenue: FY2015 vs. SPLY Revenue: FY2015 vs. SPLY

25. Shipping & Package Services Revenue: FY2015 vs. SPLY Shipping & Package Services Revenue: FY2015 vs. SPLY

26. Controllable Expenses

27. Northeast Area Financial Results December YTD (3 Months) (Billions) FY 2015 Plan Revenue $2.193 $2.175 Expenses $2.230 $2.254 Income (Loss) (37) (79) Work Hours 56,935 56,917 (18) Salary / Benefits 1.830 1.858 28 December YTD (3 Months) (Billions) FY 2015 Plan

28. Continuous Improvement Focus  Stabilizing Operating Window Change  Lean Mail Processing Certification in all Plants  Reducing Processing Cycle Times  3-5 Day Improvement Focus  Air and Surface Capacities  Continual Monitoring of Surface Routes to Ensure Service Compliance and Service Responsiveness Northeast Area Service Performance

29. Brockton P&DC Northeast Snow Storms January 3 – 4 January 12 January 26 – 27 February 1 – 2 February 9 Middlesex/Essex P&DC

31. Phase II Network Rationalization OPERATING WINDOW CHANGE ENABLES:  Consistency in consumer receiving experience  Repurposing of facility space  Response to shift in marketplace demands  Positioning us for future  Expanded Remittance Mail and Caller Service processing window  Capturing of greater efficiency

32.  Enables mailers to plan consolidation implementation progress  File provides mail move consolidation site information, type and date Mail Move Plan File Mail Move Plan is updated and posted on RIBBS https://ribbs.usps.gov RIBBS Mail Move Plan AREA KeyDe-Activation Plant Mail Activation Plant OriginatingDestinatingDPS O- Letter O-Flat O- Packag e D- Letter D-Flat D- Package DPS- Letter DPS-Flat SA Huntsville P&DF CCCCCC7/25/15N/A Birmingham P&DC WA Tucson P&DC CC7/11/15 N/A Phoenix P&DC PA WAEureka CSMPC 7/11/15 N/A Medford CSMPC PA Industry P&DC N/A 4/18/15N/A 4/18/15N/A Santa Ana P&DC (letters) PA Industry P&DC N/A 9/30/15N/A4/18/159/30/15N/A Anaheim P&DC (flats)

33.  USPS remains committed to continued information sharing  Mailers continue planning based on Mail Move plan schedule  Mail Move plan published weekly on the USPS Rapid Information Bulletin Board (RIBBS) at: https://ribbs.usps.gov  Report issues/concerns through available tools Industry Engagement is Imperative Industry Engagement

35. Critical Entry Times New Critical Entry Times (CET) are in place for Presort First-Class overnight mail and Periodicals mail effective January 5, 2015  Changes for First-Class Mail  O&D ZIP pairs eligible for overnight service for Presort First-Class mail will continue to be coded with a service standard of 1 in the Service Standards Directory (SSD)  There is no overnight service eligibility for Single-Piece First-Class mail.  There are no CET changes for Presort First-Class 2 day and 3-5 day mail  Changes for Periodicals  Mail destined for non-FSS Zones will receive a new CET based on the container make-up  There are no CET changes for mail destined for FSS Zones

36. Revised CETs for Presort FCM Overnight  All Presort First-Class containers entered on or after January 5, 2015 AND containing overnight eligible mailpieces (per the SSD), will receive the following CETs: Induction Method Container Make-up New CET BMEU Non Co-Located Any Make-up0000 BMEU Co-Located, Mailer and USPS Transported Any Make-up other than 5 digit scheme 0800 5 digit scheme (per L012) 1200 Mail entered at a BMEU that is not co- located with a USPS plant will receive a 00:00 CET i.e. Start-the-Clock will always be the next processing day (Day 1) Mail entered through any other induction method will receive either a 0800 or a 1200 CET based on the container make-up  If all pieces in a container are destined for the same 5 digit scheme (per L012), a 1200 CET will be applied  Otherwise a 0800 CET will be applied  All Presort First-Class mailpieces eligible for overnight service (per the SSD) will be reported under the overnight category regardless of whether mail was entered prior to or after CET. 1 2 1 2

37. Revised CETs for Periodicals  No CET change for Periodicals mail destined for FSS zones  Revised CET for Periodicals mail destined for Non-FSS zones DestinationContainer Make-upPrevious CETRevised CET FSSBundle Sort Required0800 (No Change) No Bundle Sort Required1100 (No Change) Non-FSSBundle Sort Required16001100 No Bundle Sort Required **17001400 No Bundle Sort Required – Pure Carrier Route Pallet * 1700 (No Change) * Effective April 12, 2015, mailers will be able to identify Pure Carrier Route Pallets in their eDoc (i.e. pallets with only CR bundles and no 5 digit bundles). Those pallets will be assigned a 17:00 CET ** Until April 12, 2015, all Non-FSS mail where bundle sort is not required will be assigned a 14:00 CET

38. First-Class Service Standards PLANT Next Day Local geographic Area if Entered by CET 2 Day 6 hour drive time ADC to SCF 3 Day Everything else  Mail dropped on Wednesday morning at 7:00am  Local geographic region to be delivered - Thursday  2 Day to be delivered on- Friday

39. Northeast Area Mail Moves

40. April – July Mail Moves Network Rationalization: April – June 2015 No Closings Platform / BMEU Will Remain SCF Discounts Will Move To Host Plants Based On National Mail List

41. April – July Mail Moves Losing FacilityApril Mail MoveJuly Mail Move Southern CT P&DCFlats to Springfield064 DPS to Hartford Stamford P&DC 066 & 069 DPS to Westchester 068 DPS to Westchester Central Mass P&DCDPS Letters to BostonFlats to Middlesex Essex Northwest BostonFSS to Middlesex Essex Queens P&DCFlats to BrooklynDPS Letters to Brooklyn Mid-Hudson Plant DPS Letters (4 Sort Plans) to Albany DPS Letters to Albany Information regularly updated on RIBBS: https://ribbs.usps.gov/https://ribbs.usps.gov/

42. Northeast Area Quarter 3 Operations Weather Stabilization of Plant “Operating Window Change” April Mail Moves

43. NEA – On-Hand Volumes Actual April – June 2014 Memorial Day

44. NEA – On-Hand Volumes Actual April – June 2014

47. Continuous Improvement Focus  Stabilizing Operating Window Change  Lean Mail Processing Certification in all Plants  Reducing Processing Cycle Times  3-5 Day Improvement Focus  Air and Surface Capacities  Continual Monitoring of Surface Routes to Ensure Service Compliance and Service Responsiveness Northeast Area Service Performance

48. Thank you