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TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE). Press Event February 6, 2013. Subtitle (20pt. Arial, Bold, Title Case). FOOTER (10PT. ARIAL, BOLD, GREY, CAPS). Today’s Announcement. New Delivery Schedule. Adapting to America’s Changing Mailing Habits.

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Presentation Transcript
slide1

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Press Event

February 6, 2013

Subtitle

(20pt. Arial, Bold, Title Case)

FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

today s announcement
Today’s Announcement

New Delivery Schedule

slide3

Adapting to America’s Changing Mailing Habits

First-Class, Single-Piece Volumes

37% Decrease since 2007

Volume in Billions of Pieces

slide4

$15.9B loss in FY2012

  • $11.1B default in FY2012 to the United States Treasury for Retiree Health Benefits
  • $15B borrowing authority exhausted
  • Liquidity very low

Ongoing Financial Challenges

slide5

Reduced career workforce by 193,000 positions – without layoffs

  • Reduced annual cost base by $15B
  • Consolidated more than 200 mail processing facilities

Aggressive Cost Reduction Since 2006

slide6

Changes to Mail Delivery

  • New Delivery Schedule
  • Six Days of Package Delivery
  • Five Days of Mail Delivery
  • Begins the week of August 5, 2013

6

slide7

New Delivery Schedule Components

  • Post Offices (P.O.)
  • Post Offices remain open on Saturdays
  • Mail delivered to P.O. Boxes on Saturdays
  • Mail Delivery
  • Monday – Friday mail delivery service
  • Package Delivery
  • Monday – Saturday package delivery service continues
slide8

Package Business Growth

Rising Demand for Package Delivery Driven by eCommerce Growth

slide9

Survey Research: Five-Day Mail Delivery

Seven out of Ten Americans Support a Five-Day Mail and Package Delivery Schedule

Higher support likely with six days of package delivery

Sources: Gallup Poll, March 26, 2010 ● New York Times/CBS News, June 27, 2012 ● USA Today, March 17, 2010 ● Washington Post, March 30, 2010

slide10

Residential Customers

Preparation and Timing

Employees

Business Mailers

Our Commitment

slide11

Approximately $2B in annual cost reduction

  • Reduction of approximately 45 million
  • Work hours annually

New Delivery Schedule:

Projected Cost Reduction

slide12

Timeline

Week of August 5

Implementation of new delivery schedule

March

Release detailed implementation plan

March - August

Webinars/outreach with business mailers

Feb Mar Apr May June July Aug

March - August

Customer communication

Feb. 6

Initial notification of new delivery schedule

slide14

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Subtitle

(20pt. Arial, Bold, Title Case)

FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)