richard j. strasser, jr. chief financial officer & executive vice president

Richard J. Strasser, Jr.Chief Financial Officer &Executive Vice President


FINANCIAL UPDATEFINANCIAL UPDATE

Revenue below Plan

Expenses below Plan

Net Income under Plan

Summary Outlook

($296M)

($119M)

($177M)

Quarter III, FY 2003 (Feb 22 – May 16, 2003)Quarter III, FY 2003 (Feb 22 – May 16, 2003)

APs 7 & 8(Feb 22 – Apr 18)


$ 1,542$ 1,542Net IncomeNet Income $ 1,909$ 1,909 366 366

43,00543,005 -1,248-1,248ExpenseExpense 41,757 41,757 1.21.2

PlanPlan VarVar

$44,547$44,547 [-881][-881]

Actual Actual

RevenueRevenue $43,666 $43,666

%SPLY%SPLY

5.75.7

($ Millions) [ ] = Unfavorable Variance to Plan Numbers may not add due to rounding

Income Statement – YTD AP 8 (Sept 7, 2002 – April 18, 2003)Income Statement – YTD AP 8 (Sept 7, 2002 – April 18, 2003)


2.9 1.5 0.11.50.0

1.5

-20

-15

-10

-5

0

5

10

% S

PL

Y

PQ 1 PQ 2 PQ 3 PQ 4ActualPlan

FY 2003 – Total Mail Volume ChangeFY 2003 – Total Mail Volume Change

APs 7&8

0.5


-0.7

0.7 0.2

-0.7-2.7 -1.6

-20

-15

-10

-5

0

5

10

% S

PL

Y


FY 2003 – First-Class Mail Volume ChangeFY 2003 – First-Class Mail Volume Change

-2.1APs 7&8


8.2

3.5 3.51.1

7.0

2.7

-20

-15

-10

-5

0

5

10

% S

PL

Y


FY 2003 – Standard Mail Volume ChangeFY 2003 – Standard Mail Volume Change

APs 7&8

3.8


$219

$127

$202$172

$201$181 $169$155

$402

-$40

$2

-$50

$86 $101

-$36

$193

Ch

ang

e to

SP

LY

($ i

n M

illi

on

s)

Planned Expense Growth Actual Expense Growth

FY 2003 – Expense TrendFY 2003 – Expense TrendFY 2003 – Expense TrendFY 2003 – Expense Trend

AP 1 2 3 4 5 6 7 8


-7-11

-14-17

-21-25

-28-32

-36-40

-6

-11

-16

-22

-27-31

-35-39

-38

-34

-4

1 2 3 4 5 6 7 8 9 10 11 12 13

Plan Work Hour Reduction

FY 2003 – Cumulative Work Hour ReductionsFY 2003 – Cumulative Work Hour Reductions

(Millions)

Actual Work Hour Reduction


-11,685

-10,533

-22,963

-14,677

-70,000

-60,000

-50,000

-40,000

-30,000

-20,000

-10,000

0

FY 2000 FY 2001 FY 2002 FY 2003

-59,858-59,858

AP 8

Cumulative Career Complement ReductionsCumulative Career Complement Reductions


0

2

4

6

8

10

12

14

16

18

71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

Percent GrowthPercent Growth

Total Factor ProductivityTotal Factor ProductivityTotal Factor ProductivityTotal Factor Productivity

Cumulative 1971 - 2003Cumulative 1971 - 2003Cumulative 1971 - 2003Cumulative 1971 - 2003

*Projection*Projection**


0

5

10

15

20

25

30

35

71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

Percent GrowthPercent Growth

Output Per Work HourOutput Per Work HourOutput Per Work HourOutput Per Work HourCumulative 1971 - 2003Cumulative 1971 - 2003Cumulative 1971 - 2003Cumulative 1971 - 2003

*Projection*Projection**


FY 2003 – Cumulative Net IncomeFY 2003 – Cumulative Net Income

.0

.5

1.0

1.5

2.0

1 2 3 4 5 6 7 8 9 10 11 12 13

Plan

$0.6B

$1.91B

Actual($ Billions)


FY 2003 – Average AP Revenue & ExpenseFY 2003 – Average AP Revenue & Expense

PQ 1 PQ 2 PQ 3 PQ 4

Revenue

$5,551M$5,551M $5,571M$5,571M $5,510M$5,510M $5,069M$5,069M$5,281M$5,281M $5,451M$5,451M $5,398M$5,398M $5,294M$5,294M

Net Inc/(Loss)Net Inc/(Loss) $ 270M$ 270M $ 120M$ 120M $ 112M$ 112M ($ 225M)($ 225M)

Expense


Average AP Net Income (Loss) Average AP Net Income (Loss) Average AP Net Income (Loss) Average AP Net Income (Loss) Quarter 1 $270M Quarter 1 $270M

Quarter 2 $120M Quarter 2 $120M

Quarter 3 $112M Quarter 3 $112M

Quarter 4 ($225M) Quarter 4 ($225M)

.0

.5

1.0

1.5

1 2 3 4 5 6 7 8 9 10 11 12 13

($ Billions)($ Billions)

FY 2003 – Cumulative Net Income PlanFY 2003 – Cumulative Net Income PlanFY 2003 – Cumulative Net Income PlanFY 2003 – Cumulative Net Income Plan

$0.6B$0.6B

FY 2003 – Net Income (Loss)FY 2003 – Net Income (Loss)

richard j. strasser, jr. chief financial officer & executive vice president

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