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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS) TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) Subtitle (20pt. Arial, Bold, Title Case) SEPTEMBER 15, 2011

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Page 1: USPS Network Presentation

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

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

Subtitle(20pt. Arial, Bold, Title Case)

SEPTEMBER 15, 2011

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2

Two Announcements

RadicalNetwork

Realignment

MailProcessing

Facility StudyList

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Mail Volume Shifting to a Less Profitable Mix

3

Volume in Billions of Pieces

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NETWORK CAPACITY

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NETWORK CAPACITY

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Decrease in Processing FacilitiesThrough 2011

As of 8/31/2011

   P  r  o  c  e  s  s   i  n  g

   F  a  c   i   l   i   t   i  e  s

6

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   P  r  o  c  e  s  s   i  n  g

   F  a  c   i   l   i   t   i  e  s

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Proposed Decrease in Processing FacilitiesThrough 2013

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Mail Processing Facility Footprint

487 Facilities Today

Current Mail Processing Sites8

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Mail Processing Facility Footprint

Studying 252 Facilities for Potential Closure

Currently Under Study

Announced Today

Gaining Sites 9

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Mail Processing Facility Footprint

Proposed Network

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Mail Processing Redesign

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Current Reach

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Potential Network Change

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FUTURE NETWORK

Support 2-3 day Service Standards

Revised Entry Times Reduced Equipment

Reduced Footprint

BENEFITS

Eliminate Excess Capacity

More Efficient Transportation Network

Fully Utilized Workforces

Up to $3 Billion Cost Reduction14

Driving Efficiency

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CHANGES

Planning for new mail processing footprint

and transport pattern Transitioning to 2-3 day service standard

OUR APPROACH

Industry-specific strategies Ongoing communication and collaborative

solutions

Our Customers

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Our Employees

559,000

151,00035,000

16

Total Career Employees

Total Mail Processing Employees

Fewer Mail Processing Positions

O

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Our Future Network

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$20 billi C R d i b 2015

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$20 billion Cost Reduction by 2015

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K A R i i L i l ti A ti

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Delivery Frequency – authority to go from 6- to 5-Day Delivery

FERS Refund – return $6.9 billion in overpaymentsto the Postal Service

Resolve the current mandate to pre-fund Retiree

Health Benefits by $5.5 billion annually andmanage legacy cost going forward

Transfer CSRS overpayment ($50 billion), or• Allow Postal Service to restructure its healthcare

system to make it independent of federal

programs — USPS Health Care Program

Key Areas Requiring Legislative Action

K A R i i L i l ti A ti

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Managing Workforce – allow reductions in thenumber of bargaining unit postal employees tofollow Reduction-in-Force provisions applicableto other federal employees

Retirement Plan – allow Postal Service to

provide a defined contribution retirement planfor its new hires; can be accomplished via OPM

Streamlined Governance Model to speedpricing and product decisions

Key Areas Requiring Legislative Action

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

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

Subtitle

(20pt. Arial, Bold, Title Case)