POSTCARDS USING POSTCARDS WITH BACK TO BUSINESS BACK

POSTCARDS USING POSTCARDS WITH BACK TO BUSINESS & BACK TO BUSINESS EXTRA INCENTIVES Aug 2020 MAIL IS REMEMBERED Classified: RMG – Internal MAIL STAYS IN THE HOME MAIL DELIVERS LASTING RESULTS MAIL REACHES EVERYONE MAIL IS TRUSTED

THE OFFER IN A NUTSHELL Classified: RMG – Internal

KEY DATES BACK TO BUSINESS 21 July 2020 OPENING DATE Q 2 14 August 2020 Q 3 25 September 2020 Q 2 29 June 26 September 2020 Q 3 28 September 24 December 2020 APPLICATION DEADLINE VALID MAILING DATES Royal Mail quarters: Q 1 (April-June), Q 2 (July-Sept), Q 3 (Oct-Dec) Classified: RMG – Internal 3

TRADITIONAL POSTCARDS AND 4 LIGHTWEIGHT FORMATS AVAILABLE TO USE 2 1 ONE PIECE PAPER WRAP MAILER 3 FEATURE MAILER 4 COUPON MAILER 5 MACHINEABLE POSTCARD (RECOMMENDED) See 16 to 18 for detailed specifications Classified: RMG –slides Internal TRADITIONAL POSTCARD 4

TWO DIFFERENT RATES FOR THESE FORMATS BACK TO BUSINESS 2 1 ONE PIECE PAPER WRAP MAILER 12 p 3 FEATURE MAILER 12 p 4 COUPON MAILER 12 p 5 MACHINEABLE POSTCARD 12 p TRADITIONAL POSTCARD 15 p 5 Classified: RMG – Internal

TWO DIFFERENT RATES FOR THESE FORMATS BACK TO BUSINESS EXTRA 2 1 ONE PIECE PAPER WRAP MAILER 10 p 3 FEATURE MAILER 10 p 4 COUPON MAILER 10 p 5 MACHINEABLE POSTCARD 10 p TRADITIONAL POSTCARD 15 p 6 Classified: RMG – Internal

WHY USE A POSTCARD OR LIGHTWEIGHT FORMAT Classified: RMG – Internal 7

A VERSATILE FORMAT A POSTCARD AND LIGHTWEIGHT FORMAT CAN HELP WITH ANY MESSAGE CRITICAL SUPPORTIVE ON HOLD Put critical information into people’s hands – short updates Provide information about store opening times, support available Communicate what changes you’ve made and convey the customer benefits Give details on how to access your services and who it is helping Show you are committed to your customers and give them an offer when the crisis is over Discount voucher or preferential booking Guide people to online options Use QR codes to make it easy to find the information or guides for older audiences Remind lapsed audiences of what you offer Give updates on services or news to engage them Update on how the brand is responding for staff Making services available and when Deliver targeted messages to key audiences – highly tailored Provide benefits to loyal customers and ways to use rewards/benefits Offer new reasons to consider your brand, special offers, drive traffic Home delivery, online content, what’s critical to you now e. g. donations Messages about how you are supporting the community; fundraising, delivering, volunteering 8 Classified: RMG – Internal

CONSUMERS WANT BRANDS TO SUPPORT THEM Only 8% of consumers think brands need to stop advertising right now but they want them to behave in a certain way 78% Believe brands should help them in their daily lives 75% Said brands should inform people of what they’re doing 74% Said companies should not exploit the situation 9 Source: Global Survey March 2020 (35 k consumers) Classified: RMGKantar – Internal

MAIL DRIVES PROFITABLE OUTCOMES ONE THIRD OF PEOPLE TAKE SOME FORM OF COMMERCIAL ACTION 33% Commercial Actions include: § Buying something/making a payment § Using a voucher/discount code § § § § Planning a large purchase Discussing with someone Visiting the sender’s shop office Going online for more information Looking up their account details Using a tablet or smartphone Calling the sender 10 Source: Classified: RMGJICMAIL – Internal. Q 2 2017 – Q 1 2019, Business Mail & Advertising Mail, n=72595

MAIL HAS HIGH ENGAGEMENT RATES ACROSS ALL SECTORS Engagement = % of mail processed in some way ie opened, read, sorted, put aside for later, filed, put on display or put in the usual place 100% 96% 99% 93% 98% 93% 91% 80% 70% 60% 50% 40% 30% 20% 10% 0% n = 3, 222 n = 3, 070 n = 6, 909 n = 5, 186 n = 8, 505 n = 3, 630 n = 3, 483 n = 3, 081 Charity Publishing Mail Order/ Online Retailer Dental/ Chemist/ Optical High Street Retailer Supermarket Travel/ Tourism TV/ Broadband/ Landline/ Mobile Source: Classified: RMGJICMAIL – Internal. Q 2 2017 – Q 1 2019, Business Mail & Advertising Mail n = 2, 809 11

MAIL DRIVES COMMERCIAL ACTIONS PEOPLE ACT ON MAIL THEY RECEIVE FROM ALL SECTORS 50% 45% 46% 40% 35% 33% 30% 25% 28% 25% 24% 20% 15% 26% 10% 5% 0% n = 3, 222 n = 3, 070 n = 6, 909 n = 5, 186 Charity Publishing Mail Order/ Online Retailer Dental/ Chemist/ Optical n = 8, 505 High Street Retailer n = 3, 630 Supermarket n = 3, 483 Travel/ Tourism n = 3, 081 n = 2, 809 TV/ Broadband/ Landline/ Mobile 12 Source: Classified: RMGJICMAIL – Internal. Q 2 2017 – Q 1 2019, Business Mail & Advertising Mail

THE DETAILS Classified: RMG – Internal

MANDATORY REQUIREMENTS HIGH LEVEL REQUIREMENTS FOR BACK TO BUSINESS INCENTIVE For Mailmark Advertising Mail, Responsible & Partially Addressed Letters and Mailmark Large Letters up to 750 g Post at least 50, 000 incremental items to qualify for this incentive Postcards are allowed – although no additional rate in Back to Business Extra Volume posted between 29 June and 24 December You can apply for just Q 2 volume or just Q 3 volume or both, but the relevant volume baselines will apply Postage credits paid in a customers’ credit account or as a credit voucher. Credits will be valid for 12 months Letters posted as Unwrapped or Polywrapped are eligible for our Manual/1400 product Applications are capped at 10 m items per quarter Where a customers mailing volume is exceptionally seasonal or varies significantly by quarter we will request evidence to validate the customer baseline. Classified: RMG – Internal 14

EXTRA FACTORS BACK TO BUSINESS EXTRA INCENTIVE 1 2 This is an incremental Advertising Mail incentive for all sectors and customers able to post a minimum of 2. 5 m incremental items per quarter Built on an agreed volume baseline and dates as per previous slides, which is weighted account for lower volumes due to Covid-19 4 3 The Access price point for a Mailmark letter is just 10 p for the customer if they post at least 95% of the accepted incremental volume Classified: RMG – Internal A 3 p per item reconciliation adjustment will be applied to volume which falls short of customer commitment (with a 5% tolerance)

THE APPLICATION PROCESS APPLY ONLINE FOR YOUR CREDIT AND RECEIVE YOUR DISCOUNT Once your mailing has been sent, you will receive your discount in the form of postage credits 12 MONTHS You have 12 months to redeem your credits ROYAL MAIL CONFIRM YOUR ACCEPTED VOLUME COMPLETE ONLINE APPLICATION FORM POST YOUR COMMUNICATIONS Fill out the application form with your information, company details, proposed volume and product specification Print your communications Classified: RMG – Internal Apply online: https: //www. royalm ail. com/business/m arketing/mail/generi c-incentive/cv 19 REDEEM ON FUTURE MAILINGS Use your postage credits on any future mailings 16

THE FORMATS TO CHOOSE FROM ONE PIECE PAPER WRAP MAILER FEATURE MAILER INSERT Paper only INSERT None SHAPE Rectangular or square FOLDS Long edges fold, short edges sealed FOLDS Maximum of 2 folds REFERENCE / BOTTOM EDGE To be a fold DIMENSIONS Length: minimum 140 mm, maximum 240 mm Width: minimum 90 mm, maximum 165 mm ITEM WEIGHT Maximum weight 100 g PAPER WEIGHT Minimum 100 gsm PAPER WEIGHT Minimum 150 gsm – 190 gsm PAPER THICKNESS Not applicable PAPER THICKNESS 0. 13 mm – 0. 175 mm recommended minimum FLAP SIZES To be a minimum of 25 mm high, less than 40 mm from the bottom and can run along the long edge and can be on the front or back FLAP SIZES Not applicable SEALING Continuous or spot SEALING Continuous seal if inserts included, spot or continuous if no inserts FINISH Matt is preferred Classified: RMG – Internal

THE FORMATS TO CHOOSE FROM COUPON MAILER MACHINEABLE POSTCARD (2/3 PLY) INSERT Paper booklet only, no more than 85 mm x 130 mm, affixed to the inside SHAPE Rectangular only FOLDS 3 folds required REFERENCE / BOTTOM EDGE To be a fold DIMENSIONS 165 mm x 145 mm (+ / - 5 mm) ITEM WEIGHT No more than 20 g ITEM WEIGHT 120 gsm – 150 gsm (150 gsm recommended) PAPER WEIGHT Minimum 115 gsm PAPER WEIGHT Minimum 150 gsm - 190 gsm PAPER THICKNESS Not applicable PAPER THICKNESS 2 ply = minimum of 0. 18 mm, 3 ply = minimum of 0. 27 mm FLAP SIZES Folded 3 times FLAP SIZES Not applicable SEALING Continuous seal of glue on unfolded edges FINISH Matt is preferred Classified: RMG – Internal INSERT None SHAPE 3 ply thickness FOLDS 2 folds REFERENCE / BOTTOM EDGE To be a fold DIMENSIONS Length: minimum 140 mm, maximum 240 mm Width: minimum 90 mm, maximum 165 mm

THE FORMATS TO CHOOSE FROM TRADITINOAL POSTCARD DIMENSIONS Minimum 90 mm x 140 mm Maximum 165 mm x 240 mm Square: Minimum 140 mm x 140 mm, maximum 165 mm x 165 mm PAPER WEIGHT Recommended minimum 200 gsm PAPER THICKNESS Minimum 0. 25 mm, maximum 5 mm FINISH Matt is preferred Classified: RMG – Internal

SPECIFICATIONS FINISH FOR DIGITALLY PRINTED POSTCARDS § When digital printing is used for mail the pigment may rub off , transfer to adjacent surfaces, crack and become marked both during the manual and automated handling processes. § The application of an ultra violet (UV) cured varnish has been found to reduce the wear to digitally printed mail items. § This provides a protective coating over the pigment. It should only be applied to the non-addressed side of the postcard, as the characteristics of the varnish may make the mail unmachinable, if applied to both sides. § The pressure exerted on the postcard during automated processing may cause colour offset on digitally printed items. Therefore, it is recommended that there should be no off-set print or colour transfer when the item is exposed to a pressure of 3. 43 k. Pa (35 g per cm 2). This equates to a weight of 8. 5 kg spread over the surface of a DL envelope, and 13. 5 kg for C 5 envelopes. 20 Classified: RMG – Internal

THANK YOU MAIL IS REMEMBERED Classified: RMG – Internal MAIL STAYS IN THE HOME MAIL DELIVERS LASTING RESULTS MAIL REACHES EVERYONE MAIL IS TRUSTED 21