Service Overview. Postal Code Targeting. Trade-mark of Canada Post Corporation. OM Official mark of Canada Post Corporation.

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1 Service Overview Postal Code Targeting Effective January 15, 2018 Trade-mark of Canada Post Corporation. OM Official mark of Canada Post Corporation. canadapost.ca/pctguides T575280

2 IMPORTANT UPDATES DESCRIPTION OF CHANGE LOCATION Amendment v1.0 Posted on November 20, 2017 Effective on January 15, 2018 Removed the requirement to sign an Agreement to access this service. Throughout document Reduced the minimum volume requirement of 500 items to 400 items Section 1.1 What is acceptable as Postal Code Targeting? for Machineable Mail. Updated to reflect 2018 prices. Section 3 Postal Code Targeting pricing When the document is amended or revised, the version number will be modified as follows: an amendment increases the first digit in the version (e.g., version 2.0, 3.0) a revision increases the second digit in the version (e.g., version 1.1, 1.2) the version number restarts at 1.0 every January of a given year. Version 1.0 January 15, 2018

3 TABLE OF CONTENTS Purpose of this Service Overview Service Overview Postal Code Targeting 1 What is Postal Code Targeting service? What is acceptable as Postal Code Targeting? What is unacceptable as Postal Code Targeting? Delivery standards Service features and options Undeliverable Postal Code Targeting items Data and Targeting 2 Data and Targeting Pricing 3 Postal Code Targeting pricing Designing 4 Designing Postal Code Targeting Mail Measurements - Size and weight Designing requirements Preparing 5 Mail Preparation Creating an Order 6 Creating an Order (Statement of Mailing) Electronic Shipping Tools (EST) Depositing 7 Depositing the Mailing Required at time of deposit Where to deposit Paying and Terms 8 Payment Terms and Terms and Conditions January 15, 2018 Version 1.0 Page i

4 PURPOSE OF THIS SERVICE OVERVIEW This Service Overview is an outline of the Postal Code Targeting Customer Guide available at canadapost.ca/pctguides. The Customer Guide forms part of the Agreement between you, the customer, and Canada Post. It explains the qualifications and other terms and conditions under which this service is provided. Be sure to use the most current version of the Customer Guide, including all amendments and other documents, which help you meet the requirements in the Agreement. Some words and expressions in this document and the Agreement have specific meanings. See Paying and Terms module, General Terms and Conditions, Section 1 Definitions or the Glossary for definitions. The Service Overview summarizes key information such as qualifying criteria, options, delivery standards, pricing, designing and mail preparation. 1 WHAT IS POSTAL CODE TARGETING SERVICE? Postal Code Targeting service provides you the ability to target a specific geographic / demographic group at the postal code level. Postal Code Targeting is a Standard Machineable mail item with a unique 2D barcode printed on each mail item. During processing, our automated equipment will spray the address found within the 2D barcode on the item. The mail item will then be sequenced for delivery. 1.1 What is acceptable as Postal Code Targeting? Any Postal Code Targeting item is acceptable provided the item meets the Postal Code Targeting definition. To qualify as Postal Code Targeting service, mailings must: be deposited and paid for in Canada for delivery in Canada consist of a minimum of 400 items for Standard Machineable mail have a unique 2D barcode on each item have three quiet zones (address, postage and on back of the item) be mailed through your mail service provider. 1.2 What is unacceptable as Postal Code Targeting? Any item that does not meet the Postal Code Targeting requirements or any item considered non-mailable. For information on non-mailable items, please refer to the Non-mailable Matter section of the Canada Postal Guide. 1.3 Delivery standards SERVICE OVERVIEW POSTAL CODE TARGETING Delivery standards are estimates of how long it will take for the mail to be delivered from the point of deposit to the destination points. Delivery standards are not guaranteed. LOCAL PROVINCIAL NATIONAL* Machineable Mail - Standard * Excludes non-major urban centres, northern regions and remote areas. For detailed information, visit Delivery Standards of the Canada Postal Guide. 1.4 Service features and options There are no service features or options for Postal Code Targeting service. IN BUSINESS DAYS January 15, 2018 Version 1.0 Page 1

5 1.5 Undeliverable Postal Code Targeting items Service Overview - Postal Code Targeting Items are undeliverable if: the 2D barcode is invalid or unreadable the item is refused by the addressee delivery is prohibited by law the item cannot otherwise be delivered to the address. We will either dispose of or recycle Undeliverable Postal Code Targeting items at our discretion. Consult the Undeliverable Mail section of the Canada Postal Guide for more detail. 2 DATA AND TARGETING The Data and Targeting module provides a more in-depth look at Canada Post Data and Targeting Solutions as a component of Smartmail Marketing. We recommend using data so you can target prospects, get your brand directly into the right hands, and boost response rates in a cost-effective way. Our targeting solutions can help you find your target audience using our data options to reach your ideal customers. SOLUTIONS DATA AND TARGETING DEFINITION Postal Code Targeting Canada Post can offer you the ideal combination of accuracy, reach and targeting. With more than 14 million addresses available, you can send a campaign from coast to coast in Canada, or to specific high-potential prospects within your market. Postal Code Targeting is a bundled solution where postage and data are built into generating an effective acquisition campaign. Let us find the best postal codes for you to target. Provide us with your best prospect postal codes. Audience Insights Target consumers or businesses at the postal code level by building your pool of prospects based on geography, demographics, psychographics and interests. Gain access to multi dwelling units and/or houses and stand alone businesses. These give you the ability to gain insights into your customer database, your target market and trade area, as well as review your marketing campaign performance. Profile Analysis Helps with competitive positioning and overall market strategies. Response Analysis There is more information in the Data and Targeting module at canadapost.ca/pctguides. PRICING 3 POSTAL CODE TARGETING PRICING To access Postal Code Targeting prices, you must meet all applicable requirements for this service. Category Price per Item Machineable Standard (Up to 50 g) 30.6 Qualifying customers may have access to lower prices by signing an Agreement. All prices are subject to applicable rebates, discounts, fees, surcharges, adjustments and taxes. There is more information in the Pricing module at canadapost.ca/pctguides. January 15, 2018 Version 1.0 Page 2

6 4 DESIGNING POSTAL CODE TARGETING MAIL To be eligible as Postal Code Targeting service, the items mailed must meet the criteria (format and physical characteristics). They must also be prepared for mailing in ways that prevent loss or damage and allow each item to be easily verified. The Postal Code Targeting service is available for: Machineable - Standard 4.1 Measurements - Size and weight Items within a given mailing must be the same size, weights and thickness. Each item within a mailing must originate from the same mail owner. Imperial equivalents are provided for your convenience. The longest dimension is the length, the second longest is the width. Square envelopes are acceptable (min. 140 mm x 140 mm x 0.18 mm and max. 156 mm x 156 mm x 5 mm). 4.2 Designing requirements DESIGNING SIZE / ITEM LENGTH WIDTH THICKNESS ASPECT RATIO WEIGHT (LENGTH/WIDTH) Envelopes and min. 5.6 in. (140 mm) 3.6 in. (90 mm) in. (0.18 mm) 1.3:1 2 g (0.07 oz.) Self-mailers max. 9.6 in. (245 mm) 6.1 in. (156 mm) 0.2 in. (5 mm) 2.6:1 50 g (1.76 oz.) Cards min. 8.5 in. (215 mm) 5.6 in. (140 mm) in. (0.2 mm) 1.3:1 2 g (0.07 oz.) max. 9.6 in. (245 mm) 6.1 in. (156 mm) in. (0.35 mm) 2.6:1 50 g (1.76 oz.) These requirements are intended to help you and your suppliers in creating mail items that are suitable for efficient processing by Canada Post. Shape Paper Graphics/colours Sealing MACHINEABLE MAIL REQUIREMENTS Standard Items Rectangular (square envelopes are acceptable) Must meet certain requirements Some requirements apply Envelopes: sealed on all sides Folded self-mailers: clip or spot seal acceptable (as per specifications) Address - Quiet Zone - On the front of the item Horizontal - Must measure 110 mm long (from the bottom right edge) and 25 mm high Vertical - Must measure 25 mm long (from the bottom left edge) and 110 mm high Postage - Quiet Zone - On the front of the item Must measure 100 mm long (from the top right edge) and 40 mm high Back of mail item - Quiet Zone Horizontal - Must measure 140 mm long (from the bottom left edge) and 15 mm high Vertical - Must measure 15 mm long (from the bottom right edge) and 140 mm high Flexibility and firmness Must be flexible; items cannot be rigid Enclosures Must meet certain requirements 2D barcode readability target 95% Unique 2D barcode There is more information in the Designing module at canadapost.ca/pctguides. Ensure each item, including any sample(s), is mailable and consider the following: 1. Scented items must be sealed in such a manner that prevents the scent from escaping. Similarly, liquids and powders must be packaged appropriately. A scented item produced using micro-encapsulated scent infused ink/ lacquers does not need to be sealed provided the scented area is covered or contained within the mailed item. 2. If an item contains a common allergen such as peanuts, sesame seeds, tree nuts (e.g. almonds, walnuts) or eggs, it must be packaged and labelled to minimize the potential for allergic reactions. Visit ABCs of Mailing and Non-mailable Matter in the Canada Postal Guide for more information. January 15, 2018 Version 1.0 Page 3

7 PREPARING 5 MAIL PREPARATION Proper mail preparation is important to ensure that we can process and deliver your mailing. Adjustments and/or surcharges may be applied to improperly prepared mailings. You are responsible for meeting all the requirements. See the Paying and Terms module, General Terms and Conditions - Section 5 Criteria for Qualification. Mail preparation is the process of facing and containerizing the items and labelling the containers and shipping units. It helps ensure machineability of mail, protection of mail, identification of the type of mail and ease of handling. Here is a summary of the key requirements for preparing your mailing. Container type Labelling containers Labelling shipping units There is more information in the Preparing module at canadapost.ca/pctguides. 6 CREATING AN ORDER (STATEMENT OF MAILING) An Order (Statement of Mailing) must be properly completed and transmitted electronically using the Electronic Shipping Tools (EST). Orders that are not transmitted electronically may be subject to a surcharge. There s more information on surcharges in the Pricing module at canadapost.ca/pctguides. Delivery standards are calculated from the day of deposit (day 0) plus the number of business days required for delivery. The number of days excludes the day of mailing, weekends and statutory holidays. Weekend and statutory holiday deposits are considered deposited on the following business day. 6.1 Electronic Shipping Tools (EST) MACHINEABLE MAIL REQUIREMENTS STANDARD Standard: letterflatainers (LFTs) (Unless containers are in a shipping unit and the shipping unit is clearly labelled) CREATING AN ORDER You have the option of using either the EST Online version or the EST 2.0 version. The EST software is free and can be accessed online or downloaded (EST 2.0) through the Canada Post website at canadapost.ca/newuser. For technical enquiries, call the Technical Help Line at The following is a summary of the key requirements when you create an order. Electronic Shipping Tools (EST) Minimum volume per deposit Sample of mail item at time of deposit Order (Statement of Mailing) Mailing ID MACHINEABLE MAIL REQUIREMENTS 400 items (each mailing ID is unique to each Order) There is more information in the Creating an Order module at canadapost.ca/pctguides. January 15, 2018 Version 1.0 Page 4

8 7 DEPOSITING THE MAILING Postal Code Targeting must be deposited in accordance with the requirements and its supporting documentation. If Postal Code Targeting items do not meet the requirements, you may choose to: pay a surcharge, if applicable re-work the mailing so as to meet the requirement have the mail processed using another option, if the items qualify, or use another appropriate Canada Post service. 7.1 Required at time of deposit Each Order (Statement of Mailing) must be accompanied by: two printed copies of the electronically prepared and transmitted Order sample(s) of the item, including all enclosures, attachments and wrapping, identical to the item being mailed. You are not required to complete an Agreement but must fill out an Order (Statement of Mailing) for each deposit. Your signature on the Order confirms that you have acknowledged and read the Terms and Conditions. 7.2 Where to deposit DEPOSITING All items must be deposited with an authorized representative at the deposit location selected on the Order (Statement of Mailing). Items cannot be deposited in street letter boxes or other mail receptacles. Daily maximum volumes of mail apply for certain types of deposit locations. RECEIPT VERIFICATION UNIT COMMERCIAL DEPOSIT CENTRES (CDC)* (RVU) LEVEL 1 LEVEL 2 LEVEL 3 No maximum 2 shipping units** 3 shipping units** 7 shipping units** (monotainers/pallets) * This location type is not equipped to process mail received in monotainers or pallets that are double-stacked. ** A monotainer can accommodate approximately 48 letterflatainers (LFTs) (40 letterflatainers with lids). The Find a Deposit Location tool is available at canadapost.ca/depositlocations to help you identify the right deposit location for your mailing based on Postal Code OM, mail type and quantity. The tool will provide you more helpful information, such as the deposit location address and deposit location cut-off times. Items deposited after the deposit location cut-off times will be considered deposited on the next business day. There is more information in the Depositing module at canadapost.ca/pctguides. PAYING AND TERMS 8 PAYMENT TERMS AND TERMS AND CONDITIONS Understanding your agreement - Learn more about fees, flexible payment options and terms and conditions to get the most from your agreement with Canada Post. PAYMENT TERMS Paying For Your Mailing With a Standing Offer Agreement (for customers who have signed an Agreement Activation Form) TERMS AND CONDITIONS (CANADAPOST.CA/GENERALTERMS) Without a Standing Offer Agreement (for Solutions for Small Business cardholders and non-contract customers) January 15, 2018 Version 1.0 Page 5

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