UPS Overview November 1, 2017

1. August 22, 2017

2. Presentations may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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: 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; existing complex and stringent regulations in the U.S. and internationally, changes to which can impact our business; increased security requirements that may increase our costs of operations and reduce operating efficiencies; legal, regulatory or market responses to global climate change; negotiation and ratification of labor contracts; 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; 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; 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, 2016, or described from time to time in our future 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. Management believes that these forward-looking statements are reasonable as and when made. 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. 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. We undertake no obligation to publicly update or revise any forward-looking statements. Information included in all presentations, including comparisons to prior periods, may reflect adjusted results. See appendix for reconciliations of adjusted results and other non-GAAP financial measures. Forward-Looking Statements

3. 2017Targets (Non-GAAP) U.S. Domestic Target 2017 Revenue 5% to 7% Adj. Operating Profit 6% to 8% Adj. Operating Margin Expand slightly International Target 2017 Revenue 2% to 4% Adj. Operating Profit -8% to -4% Adj. Operating Margin Below LY SC&F Target 2017 Revenue 8% to 10% Adj. Operating Profit Down 1Q, Y/Y Adj. Operating Margin Slightly below LY Total Company Target 2017 Total Revenue 5% to 7% Adj. Operating Profit ~3% Adj. Earnings per Share 1% to 6% Share Repurchases of $1.8B, Dividend Payout of 50% to 55% of Adj. Net Income, and ROIC* between 23% to 28% See Appendix for reconciliation of adjusted results from prior years. The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to- market adjustments, which would be included in GAAP results and could be material. 3

4. 2018 - 2019 Targets (Non-GAAP) U.S. Domestic Target 2018 - 2019 Revenue 4% to 6% Adj. Operating Profit 5% to 9% Adj. Operating Margin 13% to 14% International Target 2018 - 2019 Revenue 5% to 8% Adj. Operating Profit 8% to 12% Adj. Operating Margin 16% to 19% SC&F Target 2018 - 2019 Revenue 4% to 8% Adj. Operating Profit 6% to 10% Adj. Operating Margin 6% to 8% Total Company Target 2018 - 2019 Total Revenue 4% to 6% Adj. Operating Profit 5% to 9% Adj. Earnings per Share 5% to 10% Share Repurchases of $1.0B to $1.8B, Dividend Payout of 50% to 55% of Adj. Net Income, and ROIC* between 23% to 28% See Appendix for reconciliation of adjusted results from prior years. The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to- market adjustments, which would be included in GAAP results and could be material.

5. Strong History of Returns on Capital 10% 20% 30% 40% ROIC 23% to 28% 2011 2016 2019 Historical average greater than 20% Ultimate Investment Allocation Flexibility  Re-invest in the business  Dividends are a priority  Maintain a strong balance sheet  Balanced approach to share repurchases 5

6. Reinvestment History UPS Airline Global Expansion SC&F Acquisitions Smart Global Logistics Network 0% 4% 8% 12% 16% 20% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 PercentofRevenue 6 6 – 7% Revenue

7. Annual cash dividends paid since 1969 *2008 included five dividend payments (totaling $2.22/share) due to dividend payment schedule change **2017 is estimated based on $.83 per share first quarter announcement $1.68 $1.80 $1.80 $1.88 $2.08 $2.28 $2.48 $2.68 $2.92 $3.12 $3.32 2007 2008* 2009 2010 2011 2012 2013 2014 2015 2016 2017** Dividends Since IPO growth averaged 10% Stable or growing dividend for almost 50 years

8. 8 Industry Leading Margins* *Operating Margin is presented on an as adjusted basis for all companies (trailing 12 months) and is not reflective of the Global Small Package market. **FDX includes TNT in FY 4Q17 14.3% 11.3% 9.7% UPS DHL FDX**

9. 4.3% 5.7%5.8% 7.2% 12% 20% 29% 34% US Global Expected Growth (CAGR) 2016 to 2020 GDP Retail Online Retail Cross Border Online Retail (Export) ~6x ~3.5x ~1.25x ~7x ~3x ~1.25x Online Retail is Growth Engine for Future Online Retail is forecasted to grow 3x the rate of GDP UPS is transforming our business model to capture this Opportunity Note: Nominal GDP Source: UPS Rates & Forecasting, eMarketer, Forrester 9

10. B2C Mix Expected to Climb 36% 40% 44% 46% 48% 49% 51% 2009 2011 2013 2015 2017 2019 PercentofU.S.DomesticPackages Actual Forecast B2C Shipments projected to continue growing 10

11. Solving the B2C Equation at UPS Revenue per package Cost per stop Packages per stop Value-added Solutions Dim-weight Pricing Peak Pricing Options ORION Hub Modernization SurePost UPS Access Point™ Synthetic Density UPS Access Point™ Network • “Not at Home” delivery • Enhances capacity • Improves customer service • >8,000 in US • >27,000 globally • Members re-direct delivery • Eliminates multiple attempts • 37M members and growing • >980M delivered packages UPS MyChoice ® UPS SurePost ® Redirect • Expanding consumer options • Growth in Large & Middle-market • ~33% redirected into UPS system 11 Commercial Residential

12. Superior Consumer Experience UPS My Choice® service UPS Access Point™ locations 12 Control Convenience Choice UPS My Choice ®, UPS Access PointTM, UPS Returns

13. 13 Bending the Cost Curve

14. Smart Global Logistics Network Benefits ORION Network Planning Tool EDGE Facility Automation *Annual cost savings and avoidance $800M to $1B* Upon Completion 14

15. The Smart Global Logistics Network International Package Flow Tech ORION Facility Automation/ Modernization Network Planning Tool EDGE Smart Trailer SurePost Redirect Higher Levels of Automation and Integration Than Ever Before 15

16. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. © 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. New wing design Modern flight deck Next-generation alloys New 787 technology engines UPS with Breakthrough Capabilities 16% More Efficiency and Capacity; Longest Routes with Ability to Cascade Capacity 16 Next-generation cargo handling system • 14firm,14options • 3todeploylate2017

17. ORION CompletedPhaseIin2016: • Morethan$400Mincostsavingsandavoidance • GeneratedNPVofmorethan$700M • 2.3Bdeliveryrouteoptimizationsinoneyear • 210Mfewermilesdriven Future: • Dynamicfunctionality • $150to$200Minannualsavings Extending Innovation Beyond the Network 17

18. Facility Investments Over70newpackageandhubprojectsaroundtheworld: • AdvancingtheconnectednessoftheUPSnetwork • New,expandingandretrofitfacilities • MoreEfficiency…MoreFlexibility…MoreCapacity • Investmentsinourintegratednetworkbenefitallpackagesandcustomers Costsavingsandavoidance: • Inall,targetingbetween$300Mto$400Mannually The World’s Most Integrated and Efficient Network…will be Even More Efficient 18

19. • GeneralRateIncrease • NEWPeakSurcharge • DIMweight • Largepackagehandlingsurcharge • SurgePricing • Residentialdeliverysurcharge • Weeklyfuelsurcharge • ForecastAccuracyTool Revenue Management Align Price with Cost Efficient Integrated Network Global Package / Forwarding / Freight / Distribution Broad Portfolio of Capabilities Products / Technologies UPS Customer Solutions Supply Chain and Industry Expertise / Marketing / Sales O N E U P S E X P E R I E N C E B A L A N C E D G L O B A L P R E S E N C E THOUGHTLEADERSHIP LEADINGBRAND 19

20. Saturday Operations FastestandWidestServiceonMondays • PickupSaturday,DeliveryMonday • 1business dayearlier • CommercialandResidential • Majormarketsinclude: NewYork,LosAngeles, Dallas,Chicago,Seattle,Atlanta,andMiami • ThroughJune2017, inalmost50metroservice areas,ornearly2,500cities&towns • In2018,coveragetoexpandtoabout5,900cities andtowns 20 U.S. Pickup and Delivery of Ground and Air 6 Days a Week We will provide Saturday Ground service to about 4,700 towns and cities by the end of 2017.

21. Asset Leverage, Technology Driven Flexibility, Unmatched Efficiency All Service Levels, One Integrated Network Advantage of single integrated network UPS domestic and international packages – all levels DeliveryUPS Worldport® Distribution Center UPS Shipper UPS Feeder Package Sorting Hub UPS Airplane Residential Business UPS Access PointTM Returns NPT Automation 747-8 NPT, EDGE ORION

22. International Growth Strategy • First expanded outside the U.S. more than 40 years ago • Today we serve more than 220 countries and territories * UPS Estimates CREATE OPTIMIZE FOUNDATION • Invested nearly $2B in our European infrastructure, about one-third complete • Add capacity to existing network footprint, increase scale economies & expand capabilities • Offer customer centric solutions: UPS My Choice, UPS Access Point, and i-parcel • Improving Europe time-in-transit by cutting one full day between 101K “city pairs” • Entered 3PL truckload market with the acquisition of Freightex • Expanding our dangerous goods service to 36 countries; effectively expand market opportunities 22

23. International Service Portfolio Expansion ExpandIndustry-LeadingExpressService: • UPSExpressprovidesbroadesttime-of-daycoverageinthemarket • UPSExpressSaverprovidesglobalcoveragetoalmostanywherein20to48hours • In2016: • AddedEarlyA.M.ExpressPlusto26newcountries • AddedExpressto52newcountries • In2017,bringingExpressandExpressPlusto37newcountries • Cutafulldayoutofdeliverytimesbetweenover350citiesin26Europeancountries 23 UPS Reaches the Top 20 Countries* for AM Delivery - More than the Competition * By GDP

24. 10% 15% 20% 25% 20162013 International Operating Margins 16 -19% 200-300bps Impact* See Appendix for reconciliation of adjusted results. *Impact due to currency hedges 24

25. 400 600 800 1,000 1,200 1,400 2Q07 1Q08 4Q08 3Q09 2Q10 1Q11 4Q11 4Q12 3Q13 2Q14 1Q15 4Q15 3Q16 2Q17 International Export Volume Trends Source: Company quarterly reports Note: FedEx in fiscal quarters, excludes TNT UPS’ 10 Year CAGR = +6.0% FedEx’s 10 Year CAGR = +2.3% AverageDailyVolume 25

26. 26 • Air and Ocean • Brokerage • Rail Freight • Insurance / Financing • Expedited Ground • Express Critical • Supplier Management • Design & Planning • Post Sales and Service Parts • Contract Logistics • e-fulfillment solutions • Acquired Marken • TL brokerage • Expanded in Mexico • Best in class customer facing technology • Expanding into Europe - acquired FreightEx • Freight LTL • TL and Intermodal • Dedicated Contract Carriage • Specialty solutions: trade show, temperature… Freight Forwarding Supply Chain & Freight Distribution Coyote UPS Freight Addressing Customers’ Total Transportation Needs With Industry Leading Portfolio of Services Supply Chain & Freight Portfolio… …connected well to Small Package

27. 78 dedicated facilities globally… and growing Global Healthcare Integrated Distribution Network • GDP & GMP compliance* • Temperature control storage & packaging • Integrated Transportation services including Temperature Controlled Air and Ground • Labelling and kitting • Order to cash services including charge-back processing • Pharmacy operations • Single integrated global platform • Implantable Device Inventory Management and Loaner Kit management 7.7 million square feet Current UPS Facilities UPS Air Hub 27

28. UPSAcquires Marken • Expanding existing UPS capabilities and coverage, especially in emerging markets • Expect to be accretive year 1 • High margin business • #1 Inbound Market Leader • 43 Global Facilities • Serving >150 countries • 140 Vehicles • 650 Employees Makes UPS the World’s Largest Clinical Trials Integrated Carrier Expanding Global Clinical Trials Capability 28

29. Coyote - High Growth, Scaled Provider Technology-driven solutions and a scaled provider of full truckload brokerage services. Coyote primarily operates in North America, but with recent expansion into Europe, Coyote is positioned to service global shippers. Complete Global Visibility Supplier & Systems Integrator 29

30. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. © 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 30 Building International Capabilities Canada & West Germany Western Europe, Asia & LatAm expansion Foundational acquisitions & organic growth in Asia, W. Europe, Canada & Mexico Core, Opportunity & Maintenance categories China, Poland, Turkey, Chile, Czech Republic, Hungary investments Emerging Markets Expansion ISMEA region formed 20172013200319891975-76 Territory Expansion Major Acquisitions and Investments Include

31. Appendix I. Latest Results II. Additional Information III. Financial Reconciliations IV. Glossary 31

32. • 2Q17:  U.S. Domestic Operating Profit Jumps 13% and Margin Expands to 14.3%  U.S. Domestic Revenue up 8.1% on Strong Air & Ground Product Growth  Export Shipments Rise 12% with Gains from all International Regions  International Revenue up 2.8%, Currency-Neutral Revenue* 8.3% Higher  All Supply Chain & Freight Units Contribute to 12% Revenue Increase  Company Reiterates Full-Year 2017 Adjusted EPS Guidance Consolidated Results 32 (In millions, except EPS) 2Q17 2Q16 $ Change % Change Revenue $15,750 $14,629 $1,121 7.7% Operating Expenses $13,534 $12,591 $943 7.5% Operating Profit $2,216 $2,038 $178 8.7% Net Income $1,384 $1,269 $115 9.1% Diluted EPS $1.58 $1.43 $0.15 10.5%

33. UPS Snapshot 33 Ranked as most valuable global brand by: Started by two teenagers making retail deliveries in the early years Delivering 19 million packages every day Founded 110 Year Ago Leader in global supply chain & freight services Premium Global Brand Enabled by Technology UPS.com Smart LogisticsUPS Ready 434,000+ employees Sustainably Serving Customers & Communities Employees Sustainability 20% reduction carbon density Customers & Communities 10M+ Connected 100M+ UPS Foundation 500+ aircraft 10th largest airline serving 114,000 delivery vehicles from vans to motorcycles

34. 34 UPS Alternative Fuel / Advanced Technology Fleet International Total: 1,456* • Propane: 1,130 • Electric: 159 • CNG: 76 • Ethanol: 62 • Biomethane: 19 • Hybrid Electric: 10 U.S. Total: 7,111* • CNG: 3,471 • LNG: 1,353 • Propane: 1,176 • Hybrid Electric: 500 • Composite: 398 • Electric: 122 • HHV: 91 *As of 05/31/2017 Total Worldwide: 8,567*

35. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. © 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. The UPS Foundation On A Page 35 Diversity & Inclusion Connected Community Environmental Sustainability Global Volunteerism $116.6M Total Philanthropic Contributions to 170+ countries (2016) 2.7M Employee Volunteer Hours UPS is Committed to More™ 4.6M Vehicles taken off the road 1B+ Miles on alternative and advanced technology fleet Recognized industry leader in environmental sustainability Commitment to help customers build more sustainable supply chains Strong tradition of community involvement $55.3M+ Employee pledge in support of United Way $13.5M+ Underserved & underrepresented population

36. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. © 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Leveraging Major Sponsorships As An Enabler of Growth 30 million items in and out of the Olympic village and venues 19 million items in and out of the Olympic Village and venues China 2008 London 2012 Expo 2020 Two air hubs in China and accelerated growth 35% respondents more likely to use UPS post sponsorship $2 billion investment in Europe - ongoing “Connecting Minds, Creating the Future” 36 25M+ expected visitors 70% visitors are overseas

37. EUROPE APAC AMERICAS Employees 46,500 14,400 17,000 Delivery Fleet 14,000 1,880 3,880 Operating Facilities 440 450 360 UPS Points of Access 17,500 3,500 2,800 Flight Segments Intra-Region Intercontinental 170 Daily 141 Daily 194 Weekly 143 Weekly 192 Daily 41 Daily *Excludes ISMEA Region Source: UPS Pressroom Fact Sheets UPS International Regional Statistics 37

38. Reconciliation of GAAP and non-GAAP Financial Measures We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures, including, as applicable, "as adjusted" operating profit, operating margin, pre-tax income, net income and earnings per share. The equivalent measures determined in accordance with GAAP are also referred to as "reported" or "unadjusted.” Additionally, we periodically disclose free cash flow as well as currency-neutral revenue, revenue per piece and operating profit. We believe that these non-GAAP measures provide additional meaningful information to assist users of our financial statements in understanding our financial results and assessing our ongoing performance because they exclude items that may not be indicative of, or are unrelated to, our underlying operations and may provide a useful baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions. We also use certain of these measures for the determination of incentive compensation award results. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP financial information does not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. Currency-Neutral Revenue, Revenue per Piece and Operating Profit We supplement the reporting of our revenue, revenue per piece and operating profit with similar non-GAAP measures that exclude the period-over-period impact of foreign currency exchange rate changes and hedging activities. We believe currency-neutral revenue, revenue per piece and operating profit information allows users of our financial statements to understand growth trends in our products and results. We evaluate the performance of our International Package business on a currency-neutral basis. Currency-neutral revenue, revenue per piece and operating profit are calculated by dividing current period reported U.S. dollar revenue, revenue per piece and operating profit by the current period average exchange rates to derive current period local currency revenue, revenue per piece and operating profit. The derived current period local currency revenue, revenue per piece and operating profit are then multiplied by the average foreign exchange rates used to translate the comparable results for each month in the prior year period (including the period over period impact of foreign currency revenue hedging activities). The difference between the current period reported U.S. dollar revenue, revenue per piece and operating profit and the derived current period U.S. dollar revenue, revenue per piece and operating profit is the period over period impact of currency fluctuations. 38

39. U.S. Domestic Cost Per Piece Reconciliation 39

40. Currency Neutral Revenue Reconciliation 40 2017 2016 % Change Currency 2017* % CAGR Revenue (in millions): U.S. Domestic Package 9,745$ 9,015$ 8.1% -$ 9,745$ 8.1% International Package 3,163 3,077 2.8% 170 3,333 8.3% Supply Chain & Freight 2,842 2,537 12.0% 14 2,856 12.6% Total revenue 15,750$ 14,629$ 7.7% 184$ 15,934$ 8.9% * Amounts adjusted reflect impacts for currency exchange rate differences. Currency Neutral Revenue Three Months Ended Currency NeutralJune 30

41. Small Package Operating Margin Reconciliation 41 (amounts in millions) 3Q16 4Q16 1Q17 2Q17 TTM GAAP Operating Income (Loss) U.S. Domestic Package 1,252$ (570)$ 1,076$ 1,395$ 3,153$ Mark-to-Market Pension Impact (Outside of 10% Corridor) - 1,908 - - 1,908 U.S. Domestic Package Adjusted 1,252$ 1,338$ 1,076$ 1,395$ 5,061$ International Package 576$ 281$ 529$ 583$ 1,969$ Mark-to-Market Pension Impact (Outside of 10% Corridor) - 425 - - 425 International Package Adjusted 576$ 706$ 529$ 583$ 2,394$ Adjusted Small Package Operating Income 1,828$ 2,044$ 1,605$ 1,978$ 7,455$ Revenue U.S. Domestic Package 9,289 10,913 9,535 9,745 39,482 International Package 3,024 3,335 3,058 3,163 12,580 Total Small Package 12,313$ 14,248$ 12,593$ 12,908$ 52,062$ U.S Domestic Operating Margin* 13.5% 12.3% 11.3% 14.3% 12.8% International Operating Margin* 19.0% 21.2% 17.3% 18.4% 19.0% Adjusted Operating Margin* 14.8% 14.3% 12.7% 15.3% 14.3%

42. Historical Operating Margin Reconciliation 2011 2012 2013 2014 2015 2016 (amounts in millions) U.S. Domestic Package GAAP Operating Profit 3,764$ 459$ 4,603$ 2,859$ 4,767$ 3,017$ Defined Benefit Plans Mark-to-Market Charge 479 3,177 - 660 62 1,908 Transfer healthcare coverage to MEP - - - 990 - - Multiemployer Pension Plan Withdrawal Charge - 896 - - - - (Gain) or Loss on Real Estate Sale 15 - - - - - U.S. Domestic Package Adjusted Operating Profit 4,258$ 4,532$ 4,603$ 4,509$ 4,829$ 4,925$ International Package GAAP Operating Profit 1,709$ 869$ 1,757$ 1,677$ 2,137$ 2,044$ Defined Benefit Plans Mark-to-Market Charge 171 941 - 200 44 425 Transfer healthcare coverage to MEP - - - 28 - - TNT Termination Fee and Related Expenses - - 284 - - - Gain Upon Liquidation of Foreign Subsidiary - - (245) - - - International Package Adjusted Operating Profit 1,880$ 1,810$ 1,796$ 1,905$ 2,181$ 2,469$ Supply Chain & Freight GAAP Operating Profit 607$ 15$ 674$ 432$ 764$ 406$ Defined Benefit Plans Mark-to-Market Charge 177 713 - 202 12 318 Transfer healthcare coverage to MEP (48) - - 84 - - Supply Chain & Freight Adjusted Operating Profit 736$ 728$ 674$ 718$ 776$ 724$ Total GAAP Operating Profit 6,080$ 1,343$ 7,034$ 4,968$ 7,668$ 5,467$ Total Adjusted Operating Profit 6,874$ 7,070$ 7,073$ 7,132$ 7,786$ 8,118$ Revenue U.S. Domestic Package 31,717$ 32,856$ 34,074$ 35,851$ 36,747$ 38,301$ International Package 12,249 12,124 12,429 12,988 12,149 12,350 Supply Chain & Freight 9,139 9,147 8,935 9,393 9,467 10,255 Total Revenue 53,105$ 54,127$ 55,438$ 58,232$ 58,363$ 60,906$ GAAP U.S Domestic Package Operating Margin 11.9% 1.4% 13.5% 8.0% 13.0% 7.9% GAAP International Package Operating Margin 14.0% 7.2% 14.1% 12.9% 17.6% 16.6% GAAP Supply Chain & Freight Operating Margin 6.6% 0.2% 7.5% 4.6% 8.1% 4.0% GAAP Total Operating Margin 11.4% 2.5% 12.7% 8.5% 13.1% 9.0% Adjusted U.S Domestic Package Operating Margin 13.4% 13.8% 13.5% 12.6% 13.1% 12.9% Adjusted International Package Operating Margin 15.3% 14.9% 14.5% 14.7% 18.0% 20.0% Adjusted Supply Chain & Freight Operating Margin 8.1% 8.0% 7.5% 7.6% 8.2% 7.1% Adjusted Total Operating Margin 12.9% 13.1% 12.8% 12.2% 13.3% 13.3% Segment Operating Margins 42

43. Adjusted Net Income and EPS Reconciliation (amounts in millions, except per share amounts) 2014 2015 2016 2015 & 2016 % Increase 2014 to 2016 % CAGR 2014 to 2016 GAAP Net Income 3,032$ 4,844$ 3,431$ 8,275$ 13.2% 6.4% GAAP Diluted Earnings Per Share 3.28$ 5.35$ 3.87$ 18.0% 8.6% Operating Expenses: Transfer healthcare coverage to MEP 1,102$ -$ -$ -$ Pension Mark to Market 1,062 118 2,651 2,769 Total Adjustments to Operating Expenses: 2,164$ 118$ 2,651$ 2,769$ Tax-Effect of Above Items (807) (39) (978) (1,017) Total Adjustments to Net Income 1,357$ 79$ 1,673$ 1,752$ Adjusted Net Income 4,389$ 4,923$ 5,104$ 10,027$ 16.3% 7.8% Divided By: Diluted WAVG Shares Outstanding 924 906 887 Adjusted Diluted Earnings Per Share 4.75$ 5.43$ 5.75$ 21.1% 10.0% Shareholder Distributions Dividends 2,487$ 2,649$ 2,771$ 5,420$ Share Repurchases 2,662 2,711 2,706 5,417 Total 5,149$ 5,360$ 5,477$ 10,837$ % Adjusted Net Income - Dividends 57% 54% 54% 54% % Adjusted Net Income - Share Repurchases 61% 55% 53% 54% % Adjusted Net Income Returned to Shareholders 118% 109% 107% 108% Earnings per Share and Shareholder Distribution Trends 43

44. ROIC Reconciliation (amounts in millions) 2011 - Adjusted 2011 - GAAP 2012 - Adjusted 2012 - GAAP 2013 - Adjusted 2013 - GAAP 2014 - Adjusted 2014 - GAAP 2015 - Adjusted 2015 - GAAP 2016 - Adjusted 2016 - GAAP Operating Profit 6,874 6,080 7,070 1,343 7,073 7,034 7,132 4,968 7,786 7,668 8,118 5,467 Less: Taxes (2,365) (2,073) (2,439) (230) (2,504) (2,427) (2,532) (1,719) (2,647) (2,607) (2,801) (1,815) After-Tax Op Profit 4,509 4,007 4,631 1,113 4,569 4,607 4,600 3,249 5,139 5,061 5,317 3,652 Beginning LT Debt 10,491 10,491 11,095 11,095 11,089 11,089 10,824 10,824 9,856 9,856 11,316 11,316 Ending LT Debt 11,095 11,095 11,089 11,089 10,824 10,824 9,856 9,856 11,316 11,316 12,394 12,394 Beginning Shareowners' Equity 10,387 8,047 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 Ending Shareowners' Equity 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 3,850 429 Average Invested Capital 20,913 18,371 19,989 17,013 18,210 16,567 16,301 14,663 15,864 12,911 16,380 13,315 Return on Invested Capital 21.6% 21.8% 23.2% 6.5% 25.1% 27.8% 28.2% 22.2% 32.4% 39.2% 32.5% 27.4% Beginning Total Debt 10,846 10,846 11,128 11,128 11,120 11,120 10,872 10,872 10,787 10,787 14,334 14,334 Ending Total Debt 11,128 11,128 11,120 * 11,120 * 10,872 10,872 10,787 10,787 14,334 14,334 16,075 16,075 Beginning Shareowners' Equity 10,387 8,047 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 Ending Shareowners' Equity 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 3,850 429 Average Invested Capital 21,107 18,565 20,021 17,045 18,250 16,607 16,791 15,153 17,839 14,885 19,730 16,665 Return on Invested Capital 21.4% 21.6% 23.1% 6.5% 25.0% 27.7% 27.4% 21.4% 28.8% 34.0% 27.0% 21.9% *2012 total debt adjusted to reflect 1/15/13 debt repayment of $1.75B Shareowners Equity Adjustments: 2011 beginning balance adjusted $2.340 billion for unrecognized pension and postretirement benefits costs, net of tax 2011 ending balance adjusted $2.745 billion for unrecognized pension and postretirement benefits costs, net of tax 2012 ending balance adjusted $3.208 billion for unrecognized pension and postretirement benefits costs, net of tax 2013 ending balance adjusted $78 million for TNT and unrecognized pension and postretirement benefits costs, net of tax 2014 ending balance adjusted $3.198 billion for unrecognized pension and postretirement benefits costs, net of tax 2015 ending balance adjusted $2.709 billion for unrecognized pension and postretirement benefits costs, net of tax 2016 ending balance adjusted $3.421 billion for unrecognized pension and postretirement benefits costs, net of tax ROIC 44

45. Glossary Definition Definition Definition ABC Activity Based Costing EDGE Enhanced Dynamic Global Execution LTL Less-Than-Truckload ADV Average Daily Volume EMEA Europe, Middle East, and Africa MTM Mark-To-Market pension revaluation B2B Business To Business retail channel EPS Earnings Per Share NPT Network Planning Tools B2C Business To Consumer retail channel FSC Fuel Surcharge ORION On-Road Integrated Optimization and Navigation B2R Business To Retail store distribution channel GDP Gross Domestic Product ROIC Return On Invested Capital Block hours Aircraft hours IAF International Air Freight SC&F Supply Chain and Freight segment CAGR Compound Annual Growth Rate IP Industrial Production SSLAW Small Sort Label & Weigh DIAD Delivery Information Acquisition Device IPO Initial Public Offering TTM Trailing Twelve Months 3PL Third Party Logistics 45

UPS Overview November 1, 2017

UPS Overview November 1, 2017

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