usps fy 2011 second quarter bog presentation

8/6/2019 USPS FY 2011 Second Quarter BOG Presentation

1/22

Open Session

Board of GovernorsMay 10th, 2011


2/22

Quarterly Report onFinancial Performance


3/22

-3.3%

-14.6%

-8.9%

-1.3%

1.5%

-3.0% -2.2%

-6.3%-5.5%

-9.4%

-14.8%

-12.7%

-3.2%

0.7%

-3.1%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2

Total Mail Volume

8 Quarter Moving Average Growth Rates% SPLY

FY 2008 FY 2009 FY 2010

Mail VolumeChanges by Quarter

FY 2011

Note: FY 2010 and FY 2011 include impact of 2010 census volume

Excl.

impact

of 2010

Census

Pro-Forma


4/22

-10.1%

-6.8%

-6.0%

-7.6%-6.9%-6.5%-7.4%

-10.0%

-7.2%

-5.0%

-8.2%

-2.7%-3.4%

-6.3% -5.7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2

First-Class Mail


FY 2008 FY 2009 FY 2010 FY 2011


Note: FY 2010 and FY 2011 include impact of 2010 census volume

Excl.

impact

of 2010

Census

Pro-Forma


5/22

-11.2%

8.6%

-2.7%

1.6%

4.6%

0.7%

8.9%

-19.5%-19.7%

-5.6%-3.0%

-6.1%

-17.7%

-10.9%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Standard (Advertising) Mail


FY 2008 FY 2009 FY 2010 FY 2011



6/22

Shipping Services Mail

2.8%

-7.6%

-4.9%-4.8%

-2.0%

-15.8%-15.1%

2.4%1.6%

4.7%3.4%

-2.1%

2.6%

-10.5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

% SPLY

FY 2008 FY 2009 FY 2010 FY 2011



7/22

-0.7%

-4.5%

-6.3%

-2.1%

0.5%

-0.3%

-2.0%-2.7%

-10.0%

-5.0%

0.0%

5.0%

Volume

Mail

Processing

Customer

Services City Delivery

Rural

Delivery Postmasters Other T otal

(%o

fPriorYear)

Workhour and Volume ChangesMarch YTD FY 2011

87.4B87.4B111.9M111.9M 77.2M77.2M 201.5M201.5M

87.8M74.7M74.7M 582.3M582.3M

29.3M


8/22

Financial Results

Six Months thru March 2011(Billions)

FY

2011

FY

2010

Revenue $34.1 $35.1

Expenses (34.2) (34.1)Operating Income (Loss)* (0.1) 1.0

Retiree Hlth. Benefits Pre-Funding (2.8) (2.8)

Workers Comp: Actuarial & Claims (0.7) (0.3)

Workers Comp: Discount Rate Adj 1.0 0.3

Net Income (Loss) ($2.6) ($1.9)

Volume (Pieces) 87.4 87.9

* Before RHB Pre-Funding & Non-Cash Adjustments to Workers Compensation Liabilities


9/22

Quarterly Report onService Performance


10/22

Quarter 2 Service Performance

January 1 March 31, 2011

Extreme weather conditions

Employees delivered

Focused on continuous improvement


11/22

Single Piece First-Class

Continuous Improvement

Drive the 24 hour clock

Reduce variation

Relentless pursuit of quality

Faster service diagnostics

Streamlining the network


12/22

Single-Piece First-Class

96.0 96.096.0 95.9

80

85

90

95

100

QTR 2 YTD

QTR 2 SPLY YTD

Overnight


13/22


92.492.4 92.592.6

80

85

90

95

100

QTR 2 YTD

2 Day SPLY YTD

2 - Day


14/22


15/22


88.589.1 87.287.4

80

85

90

95

100

QTR 2 YTD

Int'l SPLY YTD

International


16/22

Presort First-Class


Faster service diagnostics

Eliminate mailer certification

Simplified Customer Supplier Agreements

Implement National Critical Entry Times


17/22


18/22

Customer Experience Measurement


Leverage diagnostics

Focused areas of opportunity

ContactSmall Business


19/22


20/22

89.9 89.4

82.9

59.9

89.5 88.7

81.5

60.7

40

50

60

70

80

90

100

Receiving Sending Visiting Contact

QTR 2 SPLY

Customer Experience Measurement

Residential Experience


21/22


22/22

Open Session

Board of GovernorsMay 10th, 2011

usps fy 2011 second quarter bog presentation

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