The Future of Singapore’s Post Offices 28 Nov 2014

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SingPost at a Glance

$4.1B market capitalisation

>150 years serving Singapore

15 countries footprint

2003 IPO

30% regional revenue

2007 postal liberalisation

5,000 size of workforce

>3 million mail items delivered each business day

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A Very Challenging Postal Environment Globally

Mail Volume è 2011 - 2013 Mitigating measures taken in 2014 •  USPS - increased postage rate by 6% in Jan - Cut hours at 4,000 post offices - Closed 223 mail processing facilities

•  Japan Post - Increased postage rate by 2.5% in Apr

•  Canada Post - increased postage rate by 35% in Mar - Cut approximate 8,000 jobs - Scrap home deliveries

•  Australia Post

- Cut headcount by 900

•  SingPost - Invested S$100m into service - Introduced Saturday deliveries

•  New Zealand Post - Increased postage by 12.5% in Jul - Cut up to 2,000 jobs (18% of workforce) - Cut to 3-day mail delivery from mid 2015 - Downsize network to 3 sorting centres from 6

Source: Postal organisations’ websites/annual reports Notes: USPS’ financial year ends on 30 Sep, SingPost/Japan Post, 31 Mar

-10.00%

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

-2.19%

USPS SingPost Japan Post

Canada Post

Korea Post

NZ Post

Australia Post

-3.16%

-5.88% -6.44%

-8.09% -8.43%

-8.95%

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Singapore Cannot Avoid the Global Trend

First-ever domestic

mail volume decline

Rising costs

Lifestyle changes

High service expectations

Need to act & invest

now to avoid downward spiral as

tipping point approaches

Profits decline

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Productivity is Key to Transformation for A New Era

Customer Productivity Staff Productivity

Productivity via technology, infrastructure upgrading & process improvements

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The New Post Office

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POPStation allows customers to pick up and post their parcels 24/7, at their convenience

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What is POPStation (Pick/Post-Own Parcel Station)?

It is a secure locker station that allows customers to pick up and post their parcels 24/7, at their convenience

Accessible 24/7

Easy to use

Secure

Discreet

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Your Mobile “Post Office”, Access it on the Move

24/7 Post Office services

via a kiosk

“Post Office” is now Online

SAM facilitates self-service

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The Future?

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Thank You

Achieving High

Ranked No 1 postal agency in the world

Global Service Provider of the Year award

World Mail Award 2014 (eCommerce)

Only company to win an EMS Cooperative award every year since 2001