Webinar

1
Webinar 13Budget OverviewPresented byPat
Donahoe and Tony MorrowFriday, February 6,
2009
2
Agenda
Todays Agenda

• Introduction
• Multi-Year Trends
• Final Budget June 2008
• Integrated Financial Plan September 2008
• Current Forecast - January 2009

3
Mail Volume History
Volume
Volume in Billions
Frcst
4
Total Mail Volume
Volume
Prelim.
5
First-Class Volume
Volume
(in Billions)
Frcst
6
First-Class Single Piece Volume
Volume
Frcst
(in Billions)
7
Standard Volume
Volume
Frcst
(in Billions)
8
2008 Contribution per Piece
0.41
First-Class
0.20
Standard
9
Delivery Point Growth
Delivery Point Growth
FY
Proj.
Reporting procedures changed and implemented in
2004
(Millions)
10
Career Employees
Career Employees
FY
JAN. 09
11
Deliveries per Hour
Deliveries per Hour
FY
Proj.
12
Agenda
Todays Agenda

• Introduction
• Multi-Year Trends
• Final Budget June 2008
• Integrated Financial Plan September 2008
• Current Forecast - January 2009

13
FBUD - VOLUME
Final Budget Volume
(Billion Pcs)
14
FBUD - REVENUE
Final Budget Revenue
(Billions)
15
Final Budget Expense
FBUD - EXPENSE
(Billions)
80.7
16
FBUD NET LOSS
Final Budget Net Loss
(Billions)
17
Final Budget Cost Reductions
FBUD COST REDUCTIONS
18
Agenda
Todays Agenda

• Introduction
• Multi-Year Trends
• Final Budget June 2008
• Integrated Financial Plan September 2008
• Current Forecast - January 2009

19
Integrated Financial Plan Volume
FBUD - VOLUME
(Billion Pcs)
FBUD
IFP
20
Integrated Financial Plan Revenue
FBUD - REVENUE
(Billions)
21
FBUD - EXPENSE
Integrated Financial Plan Expense
(Billions)
79.2
22
Integrated Financial Plan Net Loss
FBUD NET LOSS
(Billions)
23
Cost Reductions
IFP COST REDUCTIONS
24
Cost Reductions
COST REDUCTIONS
25
Agenda
Todays Agenda

• Introduction
• Multi-Year Trends
• Final Budget June 2008
• Integrated Financial Plan September 2008
• Current Forecast - January 2009

26
IFP - VOLUME
January 2009 Volume
(Billion Pcs)
202.7
27
IFP - REVENUE
January 2009 Revenue
(Billions)
28
IFP - EXPENSE
January 2009 Expense
(Billions)
29
IFP NET LOSS
January 2009 Net Loss
(Billions)
30
January 2009 Cost Reductions
JANUARY 2009 COST REDUCTIONS
31
Projected FY 2009 Net Loss Outlook
Legislative Relief
Planned Net Loss
January 09 Budget Adj.
2.0
Addl Cost Reductions
1.2
Revenue Shortfall
0.7
Inflation Savings
Fuel Savings
32
Summary

• Economy in Recession
• 11 Volume Decline Since 2007
• Mail Mix Changing Margins Shrinking
• Delivery Network Still Expanding
• Cost Reduction Efforts Vital to Success

33
Questions?
ANY QUESTIONS? ______________________ REMEMBER
If you have questions or comments after the
presentation, you can send them to
service.webinars_at_usps.gov
34
Next Week
Webinar 14 Friday, February 13,
2009 Overview of Scanning Presented by Tom
Day Senior Vice President, Intelligent Mail and
Address Quality