USPS 2021 Mailing Promotions Calendar

*Operating cash flow increased 16% to $59.3 billion for the trailing twelve months, compared with $51.2 billion for the trailing twelve months ended June 30, 2020. *Free cash flow decreased to $12.1 billion for the trailing twelve months, compared with $31.9 billion for the trailing twelve months ended June 30, 2020. *Net sales increased 27% to $113.1 billion in the second quarter, compared with $88.9 billion in second quarter 2020. Excluding the $2.5 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with second quarter 2020. *Operating income increased to $7.7 billion in the second quarter, compared with $5.8 billion in second quarter 2020. *Net income increased to $7.8 billion in the second quarter, or $15.12 per diluted share, compared with $5.2 billion, or $10.30 per diluted share, in second quarter 2020.

First Quarter Highlights • Consolidated revenue of $161.5 billion, up 6.0%, or 5.8% (cc)1, including a benefit of ~1% from an additional selling day • Consolidated gross margin rate up 42bps due to improvements across segments, led by Walmart U.S. • Consolidated operating income up $0.6 billion, or 9.6%; adjusted operating income up 13.7%1 , due to higher gross margins and growth in membership income • Global eCommerce sales grew 21%, led by storefulfilled pickup & delivery and marketplace

The United States Postal Service reported new delivery performance metrics showing the average time to deliver a mailpiece across the postal network remained stable at 2.7 days between the period Jan. 1 and Jan 21. The Postal Service continues to implement mitigation plans due to recent winter storms to move mail and packages effectively with First-Class Mail performance showing steady signs of improvement over the second week of January. Additional second quarter service performance scores covering Jan.1 through Jan. 21 included: *First-Class Mail: 86.9 percent of First-Class Mail delivered on time against the USPS service standard, a decrease of 2.2 percentage points from the fiscal first quarter. *Marketing Mail: 91.7 percent of Marketing Mail delivered on time against the USPS service standard, a decrease of 1 percentage point from the fiscal first quarter. *Periodicals: 80.6 percent of Periodicals delivered on time against the USPS service standard, consistent with performance from the fiscal first quarter.