SERVICE PERFORMANCE MEASUREMENT PMG Briefing August 12, 2020 Presort First-Class Mail Score Breakdown – Processing vs Last Mile OVERALL PROCESSING 8.10% 7.96% 0.14% LOWER THAN BASELINE LOWER THAN BASELINE LOWER THAN BASELINE 100% 0.00% -1.00% 90% -1.50% 85% -2.00% 80% Last Mile Impact -0.50% 95% On-Time Score LAST MILE -2.50% 75% -3.00% Overall Score Processing Score 1 Extra Day Last Mile Impact Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan at the destination plant measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. it includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and will NOT match the official scores in slide 3 which are weighted. 5 USPS Marketing Mail Score Breakdown – Processing vs Last Mile 100% OVERALL PROCESSING LAST MILE 8.42% 7.58% 0.84% LOWER THAN BASELINE LOWER THAN BASELINE HIGHER THAN BASELINE 0.00% -0.50% 95% 90% -1.50% 85% Last Mile Impact On-Time Score -1.00% -2.00% 80% -2.50% 75% -3.00% Overall Score Processing Score 1 Extra Day Last Mile Impact Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan at the destination plant measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. it includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and will NOT match the official scores in slide 3 which are weighted. Does not include Saturation and EDDM. `17 Periodicals Score Breakdown – Processing vs Last Mile 100% OVERALL PROCESSING LAST MILE 9.57% 6.49% 3.08% LOWER THAN BASELINE LOWER THAN BASELINE LOWER THAN BASELINE 0.00% -1.00% 95% -2.00% -3.00% -4.00% 85% -5.00% 80% -6.00% Last Mile Impact On-Time Score 90% -7.00% 75% -8.00% 70% -9.00% 65% -10.00% Overall Score Processing Score 1 Extra Day Last Mile Impact Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan at the destination plant measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. it includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and will NOT match the official scores in slide 3 which are weighted. 26 Priority Mail Scores 52 Week Trend A marked decline in service performance observed for Priority Mail starting week 7/11/2020 7.97% LOWER THAN BASELINE Sharp decline in service since Week 41 X-Mas volume spike and corresponding service decline COVID-19 spike and corresponding service decline Extra day added 4/17. USPS adjustments in operations with recovering service 33