2015 Why UPS Capital

Why UPS Capital
®
September 20, 2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
We operate in an increasingly globalized
supply chain eco-system.
2
Longer supply chains mean more risk.

76% of companies reported
at least one supply chain disruption
in the past 12 months.
That’s a lot.
SOURCE: Business Continuity Institute and Zurich Insurance Group, 2014 Supply Chain Resilience Survey
3

Floods
Hurricanes
Tsunamis
Volcanic eruptions
Hail
Earthquakes
Typhoons
Meteorites
Blizzards
Natural disasters
strike without
warning:
© 2015 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All
rights reserved.
4

52containers are
at sea
each week.
lost or
damaged
World Shipping Council – Survey Results for Containers
Lost at Sea – 2014 Update
5
Not bad…
until it’s your
container.
Sometimes bad things happen to good cargo.
© 2015 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America,
Inc. All rights reserved.

6FreightWatch International, Supply Chain
Intelligence Center: Cargo Theft USA 2014
2.2
In the U.S.
there are
reported
cargo thefts
each day.
rights reserved.
$230,000
The average
value per
incident =

The National Cargo Security Council
$50
There’s an
estimated
billion in annual
global financial
impact from
cargo loss.
7
rights reserved.
7

Sales declined
93%
and shareholder
returns were
lower
over a 3-yr. period
33-40%
Share price volatility
was higher13.5%
Operating income
declined 107%
114%
Return On Assets (ROA)
declined
For companies
that had a major
supply chain
disruption:
SOURCE:
The Global Supply Chain Institute, University of Tennessee; Managing Risk in the Global Supply Chain, Summer 2014.
Business Continuity Institute and Zurich Insurance Group, 2014 Supply Chain Resilience Survey
The supply chain is the lifeblood of a business.
34.1% of respondents
experienced delayed cash
flow as a result of a supply
chain interruption
8

rights reserved.
Risk is an untapped
opportunity
9
describe
their effectiveness
at supply chain
risk management
as low or don’t
know.
66%
Source: Survey, Risk & Insurance Magazine

rights reserved.
10
Just 25% of a
typical company’s
end-to-end supply
chain is being
assessed in any
way for risk.
Risk is an untapped
opportunity
Source: Survey, Risk & Insurance Magazine

rights reserved.
11
of supply chain
executives
acknowledged
insurance as a
highly effective
risk mitigation tool,
but it was not
on their radar.
100%
Risk is an untapped
opportunity
Source:: The Global Supply Chain Institute,
University of Tennessee; Managing Risk in the
Global Supply Chain, Summer 2014

While protecting our customer’s bottom line is
important, so is driving top line revenue growth.
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1 RETHINKING TRADE & FINANCE 2014 - A report from the International Chamber of Commerce
2 Institute for Local Self-Reliance’s 7th annual Independent Business Survey
http://www.ilsr.org/wp-content/uploads/2014/02/2014-Independent-Business-Survey.pdf
3 Huffington Post http://www.huffingtonpost.com/2012/06/07/credit-card-payments-growth_n_1575417.html
41% of companies believe there is a shortfall
of trade finance globally1
42%
of local businesses that needed a loan in the
past two years were unable to obtain one,
or did not get what they requested2
23%
of all point-of-sale purchases are expected
to be made with cash by 20173
Capital’s
financial
solutions
can help
with these
needs

Companies don’t know what they don’t know.
13
Don’t
understand…
INCO terms
The real meaning of carrier liability
If existing insurance covers supply
chain events
How to leverage inventory in the
supply chain to drive liquidity
How insurance can drive growth
and improve customer satisfaction
How to leverage multiple payment
methods to close more sales and
mitigate fraud

Enter
UPS Capital
14

© 2015 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. 15
UPS Capital serves 21 countries…and is growing.
Region / Country
N. America
U.S.
Canada
Americas
Mexico
Brazil
Europe
Germany
UK
Italy
France
Netherlands
Belgium
Austria
Switzerland
Spain
APAC
Hong Kong
China
Thailand
Taiwan
Malaysia
Vietnam
Singapore
S. Korea

UPS Capital is a significant driver
of organizational profit and is
connected to $8.2B in UPS revenue
16
What does UPS Capital contribute?
Double digit growth in top-line
revenue
1.2% improvement to package
volume churnDifference in
churn when
UPS Capital
is engaged
Note: Churn represents Middle Market customer volume and revenue; data prepared at site level with information from the
DWH, time October 2013-September 2014 vs. October 2012-September 2013. Represents all UPS Capital customers
Double digit profit margin
3.3% improvement to package
revenue churn

17
UPS Capital.
A Key Differentiator.
rights reserved.
Mitigate risks.
Enhance
cash flow.
Securely
accept payments.

UPS Capital solutions support all aspects
of the order-to-cash cycle
18
GABL
In-transit Inventory Financing
Cargo Finance
In-transit Inventory Financing
Flex Parcel Insurance
In-transit Inventory Insurance
Cargo Insurance
In-transit Inventory Insurance
Customs Bonds
GABL
Warehouse Financing
GABL
Inventory and Receivables Financing
Trade Credit Protection Services
C.O.D
Merchant
Services
Alternative
Payments
Fraud
Protection
Supplier Importer Customer
Production In-transit Distribution Credit Payment

UPS Capital changes
the conversation.
threatening
conversations.
Limits
rights reserved.
19
Moves the
conversation
away from
price.
Positions UPS
differently
in the eyes of
the customer.

UPS Capital changes
the conversation.
rights reserved.
20
Provides
opportunity for
C-suite
engagement.
Provides
differentiating
points of value
that
competitor
can offer.
no other

rights reserved.
21
UPS and The House
Outdoor Gear
ConnectShip®
UPS Developer Kit
Warehouse Engineering
Assessment
UPS My Choice®
UPS Capital®
Merchant Services
UPS Capital® Fraud
Protection
UPS Capital® Flexible
Parcel Insurance
UPS Capital Cargo
Finance®
Global Asset-Based
Lending
UPS Capital® Trade
Credit Insurance
UPS Capital® Cargo
Insurance

22
Texas Precious Metals
UPS Proactive Response
®
Secure
For everyone
who ships
or packages
that need to be
treated
like gold
gold…
© 2015 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc.
All rights reserved.

Texas Precious Metals Video
23
Please use the link below to access the video
https://www.youtube.com/watch?v=Wv_oV_JTz-g

Visit SCOUT for more information.
24

Web Redesign
The new U.S. site will launch in March
followed by international in June.
25

Risk Mitigation.
Protect your goods.
27

Flexible Parcel Insurance
Coverage for small packages
Coverage
Flexible Parcel
Basic
Flexible Parcel
Expanded
Flexible Parcel
Time-in-Transit
Flexible Parcel
Multi-Carrier
Cost of Goods • • • •
Selling Value • • • •
Consequential
Loss
• • •
Perishables •
Articles of
Unusual Value
• • •
Time Guarantee •
Multiple Carriers •
• Specialized programs:
– UPS Capital Jeweler’s Elite Program®
– UPS Proactive Response®
Secure
– UPS Capital Elite ™
for Vintners

Cargo Insurance
Worldwide, multimodal, multi-carrier for goods in transit or in storage.
• Customizable program that can cover shipping and warehouse risk along with
contingency losses
• Protects shipments against loss or damage — regardless of transportation mode or
carrier
• Insures a single shipment or all shipments
• Provides coverage for selling value of goods
• Goods are covered under one simple policy - Open annual policy
• Covers unique situations such as trade shows, projects or more difficult commodities to
insure
• Protects against concealed damage, expediting expenses, general average losses,
labels and brand issues
• Fast claims processing
• Dedicated customer service
Specialized programs:
– UPS Capital Elite™ for Vintners
– UPS Capital Cargo Edge for Time Sensitive Goods

Trade Credit Insurance can help mitigate
the risk to your customer’s bottom line
• 52% of businesses identify slow-paying customers as the
biggest challenge to maintaining their cash flow
• 38,773 businesses failed in just North America in 2013 due to
delinquent accounts receivable
Trade Credit Insurance benefits:
• Protects a company against bad-debt losses
• Provides opportunities to receive better financing terms with
insured accounts receivable
• Enables company to comfortably expand to new
markets/customers knowing they are insured
• Enables a company to make better credit decisions and
forecast bad debts more accurately
11262014UPSC000018CAP

How do UPS Capital risk products help customers?
• Insurance products designed for supply chains, arguably one of the most risky
components of a business
• Coverage specifically tailored to a company’s needs – eliminating gaps in
coverage
• Minimizes financial impact of loss and or damaged products; protects bottom
line
• Enables customers the ability to confidently offer excellent customer service
knowing they have insurance – creates competitive differentiation for the
customer

Improve cash flow.
Integrated Financing Solutions.

UPS Capital Cargo Finance®
Increase working capital through financing that
traditional banks don’t offer
• Provides inventory financing, on a transactional basis,
to customers who are importing goods via UPS Ocean
Freight, Air or Cross Border Freight using UPS
Customs Brokerage
• Unsecured facility with a $300,000 to $750,000 credit
limit
• Advance rates of up to 70 percent
• Terms of 45-75 days

Global Asset-Based Lending (GABL)
Increase working capital and improve supply chain efficiencies
• A revolving line of credit secured by foreign warehoused inventory, international in-transit
inventory, domestic inventory and receivables
• Committed facility with a $750K to $25M credit limit
• Advance rates of 50 percent or more on inventory per appraisal
• Generally used for finished goods but can also advance on raw materials
• Goods to be collateralized must be within the UPS network
• Advance up to 85 percent of accounts receivable

How do UPS Capital financial products help
customers?
Cargo Finance & Global Asset-Based Lending (GABL)
• Provides access to funds earlier in the supply chain – source for working capital
• Lowers cost of goods by paying suppliers earlier
• Provides another way to secure cash when traditional banks can’t or won’t

Payment Solutions.
Accelerate and protect payments.
36

C.O.D. Enhancement Services
A variety of Collect On Delivery solutions are available to ensure secure
receipt of payments.
Product
C.O.D.
Automatic®
C.O.D.
Secure®
C.O.D.
Direct®
C.O.D.
Delayed
Deposit
Funds Available 2-3 Days 2-3 Days 6 Days
Depends on
customer selection
Dedicated Customer
Support √ √ √ √
Payments Guaranteed
up to Limit √
Accurately Forecast
Receivables √ √ √

Merchant Services
Accept payments anytime, anywhere.
Full range of payment options:
• Debit, credit, ACH, recurring billing, gift cards, e-checks, PayPal®
, loyalty programs
• Mobile payment options
• Apps for iPhone®
, iPad®
and Android™
UPS Capital® Connect virtual terminal:
• Process sales, e-mail invoices, set up payment plans
• Run transactions reports, charts and graphs, reprint receipts
• Manage customer and user information
Next day funding that does not require merchant to change bank accounts
E-commerce capabilities

Alternative Payment Options
Through our partnership with CardinalCommerce®, a customer’s payment options
are coordinated and managed through a simple, yet powerful API that can be
seamlessly integrated into a customer's current system. Plus, it provides the
flexibility to add one or all of our many alternative payment brands including:
• PayPal®*
• MasterPass® by MasterCard®
• V.me® by Visa®
• Google Wallet™**
• Amazon Payments™***
By offering alternative payment options, you can increase customer satisfaction and
boost revenue.
*PayPal is a registered trademark of PayPal, Inc. **Google Wallet is a trademark of Google, Inc. ***Amazon Payments is a trademark of Amazon.com,
Inc. or its affiliates.

Credit Card Fraud Protection
Help Protect Payments
Reduces fraudulent online activity and chargebacks
• Verified by Visa®
and MasterCard SecureCode®
and offers the highest levels of fraud
protection
Enables safe international expansion
• Process cards from all over the world without the worry of fraud
Reduces credit card interchange rates
• Payer authentication can help reduce rates on every eligible transaction
11262014UPSC000018CAP

How do payment solutions from UPS Capital
help customers?
• Helps increase sales by offering a variety of payment options –
makes customers more competitive and accessible
• Improves business processes and reduces manual tasks
• Helps mitigate fraud with credit card fraud protection
• Can save money as UPS typically can provide this portfolio of services
at a lower cost
11262014UPSC000018CAP

UPS Capital – A differentiator in a sea of sameness
• Offers innovative and unique solutions for our industry
• Changes the conversation with the customer
• Reduces churn and enables top-line growth
• Drives considerable profits to UPS
11262014UPSC000018CAP

Insurance is underwritten by an authorized insurance company and issued through licensed insurance producers affiliated with UPS Capital Insurance Agency,
Inc. and its licensed affiliates are wholly owned subsidiaries of US Capital Corporation. Insurance coverage is not available in all jurisdictions.
All credit is subject to credit approval and applicable laws and regulations. Products may not be available in all areas. UPS Capital Corporation loans are made
in California pursuant to a Department of Corporations California Finance Lenders license. UPS Capital HK Limited is a licensed money lender in Hong Kong
under the Money Lenders Ordinance, and all loans are made in Hong Kong pursuant to that license. Each global supply chain finance solution will be governed
by the terms, conditions, limitations and exclusions set forth in the applicable global supply chain finance agreement with UPS Capital Corporation and any
other lender party thereto (the “Global Supply Chain Finance Agreement”). This information sheet does not in any way alter, supplement or amend the terms,
conditions, limitations or exclusions of the Global Supply Chain Finance Agreement and is intended only as a brief summary. Please consult the Global Supply
Chain Finance Agreement for the exact terms and conditions.
C.O.D. Enhancement Services products are offered through UPS Capital Trade Protection Services, Inc. UPS Capital Corporation and its affiliates reserve the
right to change or cancel any C.O.D. Enhancement Services program at any time. Each C.O.D. Enhancement Services program is governed by the applicable
terms and conditions governing participation in that program and certain limitations and exclusions apply. Information contained in this information sheet does
not in any way alter, supplement or amend the applicable terms and conditions governing participation in any C.O.D. Enhancement Services program and is
intended only as a brief summary of that program. The UPS C.O.D. charges as set forth in the UPS rates in effect at the time of shipping apply to each UPS
C.O.D. package shipped. Some C.O.D. Enhancement Services may involve loans or the advancement of funds for anticipated C.O.D. receipts. Loans made in
California are pursuant to a Department of Corporations California Finance Lenders License. C.O.D. Enhancement Services products may not be available in
all jurisdictions. C.O.D. Automatic, C.O.D. Secure and C.O.D Direct are registered trademarks of United Parcel Service of America, Inc.
All services in connection with the UPS Capital Merchant Services Program are provided by Century Payments, Inc., a Registered Agent of RBS Citizens, N.A.,
Providence, RI. All decisions regarding approval of a merchant services application, and all fees charged for merchant services, are determined solely by
Century Payments, Inc. The UPS Capital Merchant Services Virtual Terminal is powered by Maas Global Solutions (MGS). Apple is a trademark of Apple, Inc.
Android is a trademark of Google, Inc.
All services in connection with the UPS Capital Credit Card Fraud Protection program are provided by CardinalCommerce® and all fees charged for services
are determined by CardinalCommerce. All decisions regarding approval will be made solely by CardinalCommerce under CardinalCommerce’s then-current
criteria.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All
rights reserved.
Disclaimers
11262014UPSC000018CAP

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