Strong Today. Creating Our Tomorrow - 2018 UPS Transformation Conference - UPS's Investor ...
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Strong Today. Creating Our Tomorrow.
2018 UPS Transformation Conference
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Forward-Looking Statements
This presentation contains and refers to “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are all statements, other than those of historical fact, and may be accompanied by terms such as “believe,” “project,” “expect,” “estimate,” “assume,”
“intend,” “anticipate,” “target,” “plan,” and variations thereof. Forward-looking statements are made subject to safe harbor protections of the federal securities laws
pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on
any such forward-looking statements because such statements speak only as of the date when made.
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Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our
present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions, both in the U.S.
and internationally; significant competition on a local, regional, national, and international basis; changes in our relationships with our significant customers; the
existing complex and stringent regulation in the U.S. and internationally (including tax laws and regulations), changes to which can impact our business; increased
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physical or data security requirements that may increase our costs of operations and reduce operating efficiencies; legal, regulatory or market responses to global
climate change; strikes, work stoppages and slowdowns by our employees; the effects of changing prices of energy, including gasoline, diesel and jet fuel, and
interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to maintain the image of our brand; breaches in data
security; disruptions to the Internet or our technology infrastructure; interruption of our business from severe weather or other natural or man-made disasters
including terrorism; our ability to accurately forecast our future capital investment needs; exposure to changing economic, political and social developments in
international and emerging markets; changes in business strategy, government regulations, or economic or market conditions that may result in substantial
impairment of our assets; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; potential additional
tax liabilities both in the U.S. and internationally; the potential for various claims and litigation related to labor and employment, personal injury, property
damage, business practices, environmental liability and other matters; our ability to realize the anticipated benefits from acquisitions, joint ventures or strategic
alliances; our ability to manage insurance and claims expenses; and other risks discussed in our filings with the Securities and Exchange Commission from time to
time, including our Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent reports filed with the Securities and Exchange
Commission. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions
contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes
in expectations, or the occurrence of unanticipated events after the date of those statements.
Information included herein, including comparisons to prior periods, may reflect adjusted results. See the appendix for reconciliations of adjusted results and
other non-GAAP financial measures.
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
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The UPS Brand
Trustworthy
Dependable
Reliable
Entrepreneurship
Agility
Digital competencies
!
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Four Strategic Imperatives
FUELING UPS GROWTH
1 2 3 4
International Global B2B and B2C Healthcare and Small and
high-growth e-commerce life sciences medium-sized
markets businesses
!
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International
Market Growth
Trade expanding as B2B and
B2C cross-border transactions increase
Industry and geo-specific products
providing customers with strong
global platform
4
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Healthcare and
Life Sciences
$85B outsourced healthcare logistics
market - climbing to $105B by 2021
UPS Healthcare holds double-digit share
of U.S. market
Personalized medicine and digital services
driving home health care opportunities
Vast residential network, special
packaging, enhanced tracking/visibility
and time-definite delivery solutions
Regulatory compliance
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Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Leader in global inbound clinical trials
Marken Hybrid shipping solution
Capabilities Direct-to-patient and direct-from-patient
!
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Investing in
Healthcare Quality
Assurance
Capabilities
Leveraging investments in technology
for greater visibility and control
Delivering innovations for
critical healthcare shippers like
UPS Pro Active Response
Value equates to attractive margins
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Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
SMB Market
30% of U.S. volume generating half of revenue
U.S. SMBs ship more than 14 million
higher-margin packages per day with a
relatively high percentage
shipped internationally
!
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The
drop boxes
UPS Store ®
UPS
Access Point ™
!
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Marketing
Capabilities
UPS.com and other digital channels
Improving simplicity
and pricing velocity
with advanced analytics
Determining most-effective
bespoke offers
!"
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Innovations
for SMBs
New fulfillment options
Shipping integration solutions
Shopify Checkout App
Ware2Go
!!
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Business
Application
Specific features for businesses
Visibility enhancements
Consolidated delivery alerts
Delivery change options
!"Capturing
Global
E-Commerce
Growth
RAPIDLY EXPANDING MARKET
$1.2T B2B e-commerce sales by 2021
28% increase in cross-border
e-commerce over next 3 years
13More than
51 Million
UPS My Choice
Users
!"Platform Shipping
Integration
Solutions
Customer Technology Partnership
UPS shipping embedded into
50 software applications
Discounted price when linked to
UPS shipping contract
UPS Ready Program
More than 100 software programs fully
integrated with UPS shipping
!"Global
B2B & B2C
Customers
One-stop tech platform
UPS Access Point network
The UPS Store consolidated
returns program
Connected commerce
Deliv
!"Strong Today. Creating Our Tomorrow.
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