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BUSINESS MAIL 1 st CLASS AND BUSINESS MAIL SUMMARY OF INFORMATION TABLE OF CONTENTS Definition of Business Mail 1 st Class and Business Mail Entry requirements Business Mail 1 st Class and Business Mail options Formats Delivery speed options Payment options Payment indicia Business Mail 1 st Class and Business Mail options in detail Unsorted, non-machine-readable option Unsorted, machine-readable options Sorted options Availability of Business Mail with other Royal Mail offers DEFINITION OF BUSINESS MAIL 1 st CLASS AND BUSINESS MAIL Business Mail 1 st Class and Business Mail will typically contain general correspondence and items of a personalised nature for transactional, contractual or relationship purposes. Generally they are for mailings that do not qualify for Advertising Mail, Sustainable Advertising Mail or Publishing Mail. Business Mail 1 st Class is for urgent general correspondence including bills / statements that require a next working day delivery. Business Mail is for general correspondence including bills / statements requiring less urgent delivery than next day. ENTRY REQUIREMENTS Entry requirements as per option chosen, specified below 1

BUSINESS MAIL 1 st CLASS AND BUSINESS MAIL OPTIONS There are a range of options applicable to both Business Mail 1 st Class and Business Mail for you to choose from, enabling you to select what is most appropriate for your needs: Unsorted; Unsorted, non-machine-readable option: If you do not want to make your mail machinereadable or do any sorting, simply hand your mail over to us and we will do the rest. Account: This requires a printed postage impression that contains a barcode. Machine-readable Unsorted options: earn savings for preparing your mail and ensuring your addresses, postcodes and DPS are accurate so that each mail piece can be read and successfully routed by Royal Mail s sorting machines; no sorting is required. Machine-readable: Royal Mail Mailmark barcode: Mail pieces printed with a 2D 1 Mailmark barcode (that encodes unique information about the mail piece, information about the service being used and the participants in the supply chain) and a machinereadable font (100% address, postcode and DPS accuracy highly recommended 2 ). Available for Letter and Large Letter formats. Advanced: Mail pieces printed with a licence number and licence barcode or a printed postage impression that contains a barcode. Advanced item are priced based upon the highly machinable volume determined by our sorting machines. OCR: Mail pieces printed with addresses in a machine-readable font (minimum of 90% address & postcode accuracy). Available for Letter and Large Letter formats. Barcode: Mail pieces printed with a 4-state barcode that contains postcode and DPS information (minimum of 90% address, postcode & DPS accuracy). Available for Letter formats only. Sorted; Achieve savings for sorting your mail and ensuring your addresses, postcodes and DPS are accurate. Machine-readable Low sort, printed with Mailmark barcode (as above) Machine-readable Low sort, printed with Barcode (as above) Machine-readable Low sort, printed with an OCR font (as above) Non Machine-readable High sort 1 A 4-state Mailmark barcode option is also available for customers that cannot produce 2D Mailmark barcodes 2 It is recommended that the address and postcode on the item is consistent with the postcode and DPS in the Mailmark barcode on the mail piece and in the emanifest. If the address, postcode & DPS accuracy drops below 90% when compared to PAF you may see an invoice adjustment to cover the additional cost of conveying poorly addressed mail pieces. Please note: for 4-state Mailmark barcode postings a full and accurate postcode and DPS is required on each item. 2

PAYMENT INDICIA Letter: up to 240mm x 165mm x 5mm and a maximum weight of 100g Large Letter (in non-machine readable and High Sort options): up to 353mm x 250mm x 25mm and a maximum weight of 750g Large Letter (in Machine-readable and Low Sort options): up to 345mm x 245mm x 10mm and a maximum weight of 750g DELIVERY SPEED OPTIONS For mail which is not sorted prior to handing over to Royal Mail: Business Mail 1 st Class: delivery aim: next working day Business Mail: delivery aim: within three working days after the day of posting If you decide to sort your mail, the following are your options: Business Mail 1 st Class: Business Mail 2 nd Class: Business Mail Economy: delivery aim: next working day delivery aim:within two working days after the day of posting delivery aim: within four working days after the day of posting Working days are six days per week, Monday Saturday. PAYMENT OPTIONS OBA: All options Meters: only available with some machine readable, non-sorted options for letters Stamps: only available with Sorted options Meters: only available with some machine-readable, non-sorted options for letters Postage Paid Indicia (PPIs): see examples below: NB: m is the indicia for Economy 3

BUSINESS MAIL 1 st CLASS AND BUSINESS MAIL OPTIONS IN DETAIL Unsorted, non-machine-readable option If you do not want to make your mail machine-readable or do any sorting, simply hand your mail over to us and we will do the rest. This option is available for postings from only 1 item* and includes the Account product that provides a lower price than stamped mail for postings, and attracts volume related discounts. *minimum entry levels apply for discount. Unsorted, machine-readable options You can earn savings by preparing your mail so that addresses can be read and mail pieces routed by our sorting machines, but no sorting of your mail is required by you. A minimum of 500 letters, or 250 large letters in a single mailing to obtain a discount. Containers: Trays for letters Trays for large letters up to 10mm in thickness Bags or ALPs (auto-leveling sleeved yorks) for large letters more than 10mm in thickness There are 2 levels of address accuracy and legibility: 1. Machine-readable: achieve savings for ensuring that your mail has address and postcode accuracy Use an option below: Royal Mail Mailmark barcode: Mail pieces printed with a Mailmark 2D 3 barcode (that encodes unique information about the mail piece, information about the service being used and the participants in the supply chain) and a machine-readable font (100% address, postcode and DPS accuracy highly recommended 4 ). Available for Letter and Large Letter formats. Advanced: Mail pieces printed with a licence number and licence barcode or a printed postage impression that contains a barcode. Advanced item priced based upon the volume that are highly machinable determined by our sorting machines. OCR: Mail pieces printed with addresses in a machine-readable font (minimum of 90% address & postcode accuracy). Available for Letter and Large Letter formats. Barcode: Mail pieces printed with a 4-state barcode that contains postcode and DPS information (minimum of 90% address, postcode & DPS accuracy). Available for Letter formats 3 A 4-state Mailmark barcode option is also available for customers that cannot produce 2D Mailmark barcodes 4 It is recommended that the address and postcode on the item is consistent with the postcode and DPS in the Mailmark barcode on the mail piece and in the emanifest. If the address, postcode & DPS accuracy drops below 90% when compared to PAF you may see an invoice adjustment to cover the additional cost of conveying poorly addressed mail pieces. Please note: for 4-state Mailmark barcode postings a full and accurate postcode and DPS is required on each item. 5

Sorted options You can achieve savings with Business Mail by pre-sorting your items and ensuring your addresses & postcodes are accurate. A minimum of 4,000 letters, or 1,000 Large Letters in a single mailing. Low Sort: for mail that meets our machine-readable specification, sort your mail to our Low Sort specification and ensure your addresses can be read and mail pieces routed by our sorting machines to achieve maximum savings. Sort as detailed in the Royal Mail Selection Files Use an option below: Royal Mail Mailmark barcode: Mail pieces printed with a 2D 5 Mailmark barcode (that encodes unique information about the mail piece, information about the service being used and the participants in the supply chain) and a machine-readable font (100% address, postcode and DPS accuracy highly recommended 6 ). Available for Letter and Large Letter formats. OCR: Mail pieces printed with addresses in a machine-readable font (minimum of 90% address & postcode accuracy). Available for Letter and Large Letter formats. Barcode: Mail pieces printed with a 4-state barcode that contains postcode and DPS information (minimum of 90% address, postcode & DPS accuracy). Available for Letter formats only. Containers: Trays or bags for Letter formats Trays or bags for Large Letter formats up to 10mm in thickness Bags or ALPs for Large Letter formats >10mm in thickness When using trays, you must have an average of at least 100 Letters or 25 Large Letters per selection across the mailing 5 A 4-state Mailmark barcode option is also available for customers that cannot produce 2D Mailmark barcodes 6 It is recommended that the address and postcode on the item is consistent with the postcode and DPS in the Mailmark barcode on the mail piece and in the emanifest. If the address, postcode & DPS accuracy drops below 90% when compared to PAF you may see an invoice adjustment to cover the additional cost of conveying poorly addressed mail pieces. Please note: for 4-state Mailmark barcode postings a full and accurate postcode and DPS is required on each item. 6

High Sort: sort your mail to our High Sort achieve savings Sort to Direct Selections or Residue Selections as detailed in the Royal Mail Selection Files Ensure that your mailings have at least 90% minimum postcode and address accuracy compared to PAF You must have a minimum of 50 Letters or 10 Large Letters (non-machine readable) for a Direct Selection Containers: Trays, bags or segregated bundles for Letters Trays, bags or segregated bundles for Large Letters up to 10mm in thickness Bags, segregated bundles or ALPs for large letters more than 10mm in thickness When using trays, you must also have an average of at least 100 Letters or 25 Large Letters per selection across the mailing AVAILABILITY OF BUSINESS MAIL 1 st CLASS AND BUSINESS MAIL WITH OTHER ROYAL MAIL OFFERS If you don t want to sort your mail: Service BUSINESS MAIL 1 st CLASS BUSINESS MAIL First Time User Not available Available Volume Related Discounts Available Available If you want to sort your mail: Service/Class BUSINESS MAIL BUSINESS MAIL BUSINESS MAIL 1 st CLASS 2 nd CLASS Class Economy CLASS CLASS First Time User Not available Not available Available Volume Related Discounts Available Available Available Royal Mail, the cruciform, the colour red and all are registered trademarks and all TM are trademarks of Royal Mail Group Ltd. Business Mail 1 st Class & Business Mail Summary Royal Mail Group Ltd March 2016. All rights reserved. 8