United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Investor Presentation (July 2020)
39 slides from United Parcel Service's investor presentation, Jul 23, 2020
Slide 1: Change in the Chain: The New Normal
Change in the Chain The New Normal Welcome! July 23, 2020 1
Slide 2: Housekeeping items
Change in the Chain: The New Normal Housekeeping items Audience engagement • Poll questions • Q&A sections • Brief post-webinar survey Resources • UPS.com/supplychain • Sign up for important notifications • Download today’s presentation • Access today’s webinar recording • Speak with an expert Legal
Slide 3: Quick Poll
Change in the Chain: The New Normal Welcome Change in the Chain The New Normal QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service of America, Inc. UPS
Slide 4: Panelist introductions
Change in the Chain: The New Normal Panelist introductions Marco Bloemen Managing Director at Seabury Consulting Romaine Seguin Meet our panelists President UPS Global Freight Forwarding for today’s webinar Mike Harrell President Global Freight Forwarding, Europe Sebastian Chan President Asia Pacifi
Slide 5: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Par
Slide 6: Meet Marco Bloemen
Change in the Chain: The New Normal Meet Marco Bloemen Marco Bloemen Managing Director at Seabury Consulting Marco Bloemen Marco Bloemen joined Seabury Consulting in 2007 and has close to 20 years’ Managing Director at Seabury Consulting experience in air cargo consulting and 5 years in air cargo ma
Slide 7: Global market update
Change in the Chain: The New Normal Global market update • Air cargo capacity developments • Impact of COVID-19 on air trade • Insights on potential recovery Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed t
Slide 8: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 9: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 10: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 11: Global market update
Change in the Chain: The New Normal Global market update • Air cargo capacity developments • Impact of COVID-19 on air trade • Insights on potential recovery Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed t
Slide 12: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 13: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 14: Global market update
Change in the Chain: The New Normal Global market update • Air cargo capacity developments • Impact of COVID-19 on air trade • Insights on potential recovery Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed t
Slide 15: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 16: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 17: Global market update
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Service
Slide 18: Q&A
Change in the Chain: The New Normal Global market update Marco Bloemen Managing Director at Seabury Consulting Q&A 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel Ser
Slide 19: UPS global update
Change in the Chain: The New Normal UPS global update Romaine Seguin President UPS Global Freight Forwarding QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parce
Slide 20: Meet Romaine Seguin
Change in the Chain: The New Normal Meet Romaine Seguin Romaine Seguin President UPS Global Freight Forwarding Romaine Seguin Romaine began her career with UPS in 1983 as a part-time hub supervisor in Missouri. She held a President UPS Global variety of operational and management roles in Missouri b
Slide 21: UPS global update
Change in the Chain: The New Normal UPS global update • 54% of customers have cash flow management concerns • 43% of customers need to rebuild their customer base • 29% of customers consider inventory replenishment a major concern • 1 in 5 customers have proactively taken steps to shore up their sup
Slide 22: UPS global update
Change in the Chain: The New Normal UPS global update • RV rentals are skyrocketing during pandemic. RVShare reported a 1,000% increase in their rentals since April 1st (Boston Globe 21 May 2020) Romaine Seguin • Online Sales/E-Commerce: Total US online sales reached $73.2B in President UPS Global J
Slide 23: UPS regional update, Europe
Change in the Chain: The New Normal UPS regional update, Europe Mike Harrell President Global Freight Forwarding, Europe QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020
Slide 24: Meet Mike Harrell
Change in the Chain: The New Normal Meet Mike Harrell Mike Harrell President Global Freight Forwarding, Europe Mike Harrell As the President of UPS Freight Forwarding in Europe, Mike is responsible for President Global Freight Forwarding, Europe operations, strategy, and business development for all
Slide 25: Brexit Update: New Negotiations
Change in the Chain: The New Normal Brexit Update: New Negotiations June 15th – UK – EU Review • PM and commission president Mike Harrell • Limited progress to date President Global Freight Forwarding, Europe • Agreed on new momentum July/Aug – New negotiations • Initiated • In interest of EU & UK c
Slide 26: What is UPS doing to prepare for Brexit
Change in the Chain: The New Normal What is UPS doing to prepare for Brexit Product enhancements Technology updates, to support GB as 3rd country both internal and external Mike Harrell President Global Freight Forwarding, Europe Staffing Training Network adjustments Licenses and Bank Guarantees Con
Slide 27: Time to prepare again
Change in the Chain: The New Normal Time to prepare again . . . Third time’s the charm? But What Has changed? • Economic crisis fears are now a reality Mike Harrell • Recruitment options increased President Global Freight Forwarding, Europe • Remote working is a proven success • More flexibility in
Slide 28: UPS regional update, Asia Pacific
Change in the Chain: The New Normal UPS regional update, Asia Pacific Sebastian Chan President Asia Pacific Supply Chain Solutions QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UP
Slide 29: Meet Sebastian Chan
Change in the Chain: The New Normal Meet Sebastian Chan Sebastian Chan President Asia Pacific Supply Chain Solutions Sebastian Chan Based in Singapore, Sebastian is responsible for UPS’s Supply Chain Solutions business across President Asia Pacific Asia, a presence that spans more than 20 countries
Slide 30: Asia Outbound Outlook
Change in the Chain: The New Normal Asia Outbound Outlook Sebastian Chan President Asia Pacific Supply Chain Solutions 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United Parcel
Slide 31: APAC Export Air Freight Capacity Projection
Change in the Chain: The New Normal APAC Export Air Freight Capacity Projection • Expect freighter capacity slightly decreases after the peak demand in Q2 • Slower resumption of passenger belly capacity Sebastian Chan • Reduction of charters going into Q3 and Q4 President Asia Pacific Supply Chain S
Slide 32: UPS regional update, North America
Change in the Chain: The New Normal UPS regional update, North America Jeff McCorstin President UPS Global Customs Brokerage & North America Supply Chain Solutions QUICK POLL 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers,
Slide 33: Meet Jeff McCorstin
Change in the Chain: The New Normal Meet Jeff McCorstin Jeff McCorstin President UPS Global Customs Brokerage & North America Supply Chain Solutions Jeff McCorstin President UPS Global Customs Brokerage & Jeff McCorstin, began his career as a peak season package driver in 1990, and has served in his
Slide 34: USMCA vs NAFTA
USMCA vs NAFTA The new agreement focuses on trade facilitation and non-tariff barriers What’s similar: What’s changing: Rules of origin: remain the same Trade facilitation for most commodities • Transparency of customs processes • Exceptions: automotive, • Advance rulings Jeff McCorstin textiles • C
Slide 35: How USMCA benefits importers in each country
How USMCA benefits importers in each country The revised certificate of origin benefits all importers Certificate of Simplified format & Simplified format & Simplified format & Jeff McCorstin Origin certification process certification process certification process President UPS Global Customs Broker
Slide 36: NAFTA Certificate of Origin
The NAFTA C.O.O. cannot be used for USMCA shipments Avoid the denial of USMCA benefits Jeff McCorstin President UPS Global NAFTA • With USMCA in place as of July 1st the Customs Brokerage & North America Supply Certificate NAFTA C.O.O can no longer be used Chain Solutions of Origin • Only the USMCA
Slide 37: Q&A
Change in the Chain: The New Normal UPS regional update, North America Jeff McCorstin President UPS Global Customs Brokerage & North America Supply Chain Solutions Q&A 7/23/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless
Slide 38: Change in the Chain Webinar Series: Save the dates
Change in the Chain Webinar Series Save the dates THE THE NEW NAVIGATING END-TO-END NORMAL REGULATIONS GAME DATE DATE DATE July 23, 2020 September 17, 2020 October 8, 2020 TIME TIME TIME 9:00a EST 11:00a EST 11:00a EST 7/23/2020 Proprietary and Confidential: This presentation may not be used or disc
Slide 39: Thank you
ups THANK YOU
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