FedEx : Roadshow Presentation

FedEx Corporation

Investor Relations

January 7, 2020

1

Forward-Looking Statements

Certain statements in this presentation may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; anti-trade measures and additional changes in international trade policies and relations; a significant data breach or other disruption to our technology infrastructure; our ability to successfully integrate the businesses and operations of FedEx Express and TNT Express in the expected time frame and at the expected cost and to achieve the expected benefits from the combined businesses; our ability to successfully implement our business strategy and effectively respond to changes in market dynamics; the impact of the United Kingdom's expected withdrawal from the European Union and the terms of its withdrawal if it ultimately occurs; the rate and mix of future global e-commerce growth and our ability to successfully compete in the e-commerce market, our ability to match capacity to shifting volume levels; changes in fuel prices or currency exchange rates; the impact of intense competition; evolving or new U.S. domestic or international government regulation or regulatory actions; future guidance, regulations, interpretations or challenges to our tax positions relating to the Tax Cuts and Jobs Act (TCJA) and our ability to defend our interpretations of the TCJA; our ability to effectively operate, integrate, leverage and grow acquired businesses; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers providing services on their behalf; disruptions or modifications in service by, or changes in the business or financial soundness of, the U.S. Postal Service; the impact of any international conflicts or terrorist activities; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and FedEx Corp.'s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Guidance discussed during this presentation was effective as of our most recent earnings release and earnings call issued and held on December 17, 2019. Nothing discussed during this presentation should be construed as reaffirming or disaffirming such guidance.

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1

Unmatched Global Network

Links More Than 99% of World's GDP

• Over 220 countries and territories, every address in the U.S.
• 678 aircraft and more than 180,000 motorized vehicles
• More than 5,000 operating facilities; more than 650 airports served worldwide
• Sorts and processes over 15M shipments per day
• Over 490,000 team members worldwide

See fedex.com/dream for more information

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Broad Portfolio of Services

FY19 Revenues: $69.7 billion

Team Members: More than 490,000

Countries and Territories Served: More than 220

FedEx	$37.3 Billion		54%
Ground, FedEx Freight		billion of other
	revenue. The	in	and eliminations revenue.
	$20.5 Billion	29%
	$7.6 Billion	11%
	$1.7 Billion	2%

FedEx Express, FedEx Ground, FedEx Freight and FedEx Services show segment revenue. Other represents $2.6 billion (4%) of revenue. The FedEx Logistics operating results are included in Corporate, other and eliminations.

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2

Bundle of Solutions
% of Revenue
			•Our portfolio of solutions creates
				a strong value proposition
FedEx Express	•96.8% of U.S. revenue comes from
(FXE) 1.4%
				customers of two or more operating
FXE+FXG	FXE+FXF		companies
16.8%	All	0.3%	•	We manage service offerings as
	Opcos
	79.5%			a portfolio for the benefit of our
FedEx Ground		FedEx Freight
		customers and FedEx
(FXG) 0.4% FXG+FXF	(FXF) 1.4%
	0.2%		•	Our independent operations enable
				optimal service quality, reliability
				and focus
Revenue from U.S. payors for the period May 2018-April 2019. Customer defined at the Country HQ level.
FXG includes FedEx SmartPost service revenue.
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FedEx Long-Term

Financial Goals

• Increase EPS10%-15% per year
• Grow profitable revenue
• Achieve 10%+ operating margin
• Improve cash flows
• Increase ROIC
• Increase returns to shareowners

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3

Positioning for Long-Term Growth

• E-commerce,including B2B e-commerce, is increasing demand for our services
• FedEx Express integrating TNT while modernizing its aircraft fleet and major sort facilities
• FedEx Ground gaining revenue share in our highest margin segment
• FedEx Freight focused on revenue quality and improving margins
• FedEx service levels and culture remains strong

7

Macroeconomic Trends

Global economic growth has slowed as manufacturing output has flagged and trade has declined. World real GDP growth is forecasted at 2.5% in CY2019 and CY2020. The potential of a hard Brexit and escalating trade barriers represent downside risks to the economic outlook. Given the importance of access to global supply chains to U.S. competitiveness and jobs, it is important to have a policy environment that encourages free trade.

	CY18	CY19	CY20
GDP Forecast
U.S.	2.9%	2.3%	1.8%
Global	3.1%	2.5%	2.5%
U.S. Growth
Industrial Production	3.9%	0.8%	0.8%
Consumer Spending	3.0%	2.6%	2.2%

FedEx analysis as of December 2, 2019

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4

The projected growth of the U.S. domestic E-Commerce (EC) market provides huge market opportunity for FedEx

EC is projected to account for over 90% of total market volume growth through CY26

56% of EC market volume growth is projected to be addressable market for FedEx through CY26

Projected Total U.S. Domestic Market	Projected U.S. Domestic EC Market
Volume Growth	Volume Growth

	93%	28%		56%	41%
	7%			44%
47%		72%	35%
			59%
	Non-EC		Non-Addressable EC
53%	EC
	65%	Addressable EC

2018	Non-EC	EC	2026	2018 Non-Addressable Addressable	2026
Source: FedEx Analysis as of September 2019		EC	EC
	Source: FedEx Analysis as of September 2019
Note: Non-EC includes B2B and Residential Non-EC

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FedEx Business Trends

Meeting E-Commerce Demands

•Year-round,seven-day-per-week residential delivery by FedEx Ground beginning Jan. 2020

•Significantly later pick up times with FedEx Extra Hours Service

•Expanding our convenience network with retailers like Walgreens, Dollar General and Walmart

•Targeting 500 FedEx Office locations in Walmart stores

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5

80%

of people in the U.S. are

within 5 miles of a

FedEx hold

location

Customers want to drop off or pick up at places convenient to their everyday lives - the FedEx retail convenience network offers nearly 55,000 U.S. locations.

Now U.S. consumers can pick up their packages at more than 14,000 convenient, secure locations, including more than 11,300 retail locations such as Walgreens, Kroger and Albertsons. Additionally, we anticipate adding access to FedEx drop-off and pickup services at more than 8,000 Dollar General store locations by the end of 2020 and placing up to 500 new FedEx Office locations within Walmart stores nationwide.

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Pricing Strategy: Grow Yields

• Focused on long-term profitable growth

• FedEx Express and FedEx Ground will increase shipping rates an average of 4.9% effective January 2020

• FedEx Freight will increase rates an average of 5.9% effective January 2020

• Additional changes to rates and surcharges

*Details are available at fedex.com/rates2020

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6

Reducing Cost to Serve

• Post-peakreductions to the global FedEx Express air network
• Temporarily parking additional aircraft
• Full retirement of the Airbus A310 fleet in 2019
• Permanently retiring an additionally 29 aircraft by end of FY22
• Expected decrease of flight hours by6-8% YOY in Q4
• Efforts to improve efficiency continuing
• Restricted hiring

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FedEx Express: Long-Term Opportunity

• Integration of TNT will provide growth opportunities and reduce operational costs
• Improving hub automation
• Modernizing air fleet for greater reliability and fuel efficiency
• Continuing yield management
• International revenue growth

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7

Aligning Synergies with

Integration focused on more complex, higher value markets

Optimized Pickup and		Integrated		Improved Efficiency of		Grow Revenue With
	Global Express		Staff Functions and		Best-In-Class Service
Delivery Operations
	Network		Processes (SG&A)		Portfolio

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Milestones for Integration

End of FY20

European Ground

Interoperability

• Linking import and transit clearance
• Enablingcross-sort capabilities
• Linking air hubs to ground networks

End ofFY21FY20

• Integrating linehaul andpickup-and-delivery delivery operations
• Single portfolio of services

1H FY22

• International air network interoperability

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8

FedEx Ground: Building

A Better Business

•Superior service, innovation and speed advantage

•Three distinct services:

FedEx Ground®, FedEx Home Delivery®, FedEx SmartPost®

•Flexible business model

•Now operating six days per week year- round in the U.S.

•In Jan. 2020, implementing year-roundseven-day-per-week residential delivery in the U.S.

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Major U.S. metro areas began receiving Sunday residential service in January 2020

•Residential service offering only - no changes to commercial offerings

•75% of U.S. GDP covered

•7,700+ cities and towns served

•188 million people within coverage area

•28% of volume will be delivered up to 2 days earlier

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9

FedEx Ground Is Faster Than UPS Ground

Lanes fasterthan UPS	28.0%
Lanes equalto UPS	68.6%
UPS lanes faster	3.3%
Net FedEx advantage	24.7%

FedEx analysis May 2019

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Strong Portfolio of Residential Package Services

FedEx Express			FedEx Ground			FedEx Ground
•	1-2 days transit time		Home Delivery:		SmartPost:
•	Time-definite		•	1-5 days transit time		•	2-8 days transit time
•	MBG		•	Day-definite		•Final delivery by the
			USPS or FXG
•	Declared value up		•	MBG
		•	No MBG
	to $50K
		•	Declared value up
				•	No declared value
				to $50K
			•	Heavier-weight		•	Lighter-weight

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10

FedEx Ground Revenue Market Share Has Grown to more than 30%

	$70	50%
Revenue ($ Billions)	$60	40%
$50		Market Share
$40	30%
$30	20%
$20
	$10	10%
	$0	0%
		CY98 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18

FedEx Ground/FedEx SmartPost Revenue		FedEx Ground/FedEx SmartPost Revenue
Total Ground Market Revenue			Market Share
Source: FedEx analysis Notes: Figures Exclude USPS Priority Mail;	Ground Market includes USPS Workshare and Parcel Select Products

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FedEx Ground Annual Revenue of $20B with a CAGR of 12% Since 2001

Revenue ($ Billions)

$20

$15

$10

$5

$0

CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18

FedEx Ground/FedEx SmartPost Revenue

Source: FedEx analysis, $20.5 billion revenue for FY19.

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11

FedEx Freight: Competitive Advantages

• The only nationwide LTL that offers Priority and Economy from one network
• Priority: Fastest published times of any nationwide LTL*
• Focused on improving margins with a better balance of volume, pricing and capacity
• Expanding FedEx Freight Direct service for heavy and hard to handle items requiring delivery inside the home or business
• Investing in safety and efficiency improvements

• National account payor based view, FedEx analysis as of December 2016 * As of September 2018

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LTL Industry Market Share Revenue

30%

FedEx

YRCW

XPO

UPS Freight

ODFL

ABFS

Saia

25%

20%

15%

10%

5%

0%

CY04

CY05

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

CY14

CY15

CY16

CY17

CY18

Source: FedEx Analysis

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12

Corporate Operating Margin

12.0%
10.0%
8.0%	7.6%	8.2%	7.8%	7.5%
6.0%			6.5%	6.4%

4.0%

2.0%

0.0%

FY17		FY18	FY19
		GAAP		Adjusted

Non-GAAP reconciliations are included herein.

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Earnings Per Share

$18.00		$16.79	$15.52
$16.00		$15.31
$14.00	$12.09
$12.00
$11.07
$10.00
$8.00
$6.00
$4.00			$2.03
$2.00
$0.00
FY17	FY18	FY19

GAAP Adjusted

Non-GAAP reconciliations are included herein.

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13

Capital Expenditures

(% of Revenues)

10.0%
9.0%	8.5%	8.7%	7.9%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%	FY17	FY18	FY19

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Dividends Increased at a 5-Year CAGR of 27% from FY15 to FY19

Dividends Per Share

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

From FY14 through FY19, FedEx returned over $14 billion to shareowners through repurchases and dividends, including an 18% reduction in outstanding shares and a more than quadrupling of the company's quarterly dividend. Our stock buyback level is expected to be significantly lower in FY20 compared to recent years, and our 1Q FY20 dividend remains at $0.65/share. Each quarterly dividend payment is subject to review and approval by our Board of Directors, and we evaluate our dividend payment amount on an annual basis. For more information, see http://investors.fedex.com/stock-information/dividends/default.aspx

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Explanatory Note on Non-GAAP

Financial Measures

The company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or "adjusted") financial measures. Reconciliations of non-GAAP measures used in this presentation to the most directly comparable GAAP measures are included herein.

Additional information about FedEx's historical financial results is available on our website (investors.fedex.com).

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FY19 Reconciliation for FedEx Corp.

Dollars in millions, except EPS	Op	Op	Income	Net	Diluted
		Income	Margin1	Taxes2	Income3	EPS4
	GAAP Measure	$4,466	6.4%	$115	$540	$2.03
	Mark-to-Market Retirement Plan	---	---	902	2,981	11.22
	Accounting Adjustment5
	TNT Express Integration Expenses6	388	0.6%	74	314	1.18
	Business Realignment Costs7	320	0.5%	77	243	0.91
	FedEx Ground Legal Matter	46	0.1%	3	43	0.16
	Net U.S. Deferred Tax Liability	---	---	(4)	4	0.02
	Remeasurement
	Non-GAAP Measure	$5,220	7.5%	$1,167	$4,125	$15.52

1,2,3,4,5,6,7See "Footnotes for Non-GAAP Reconciliation Slides" below for details.

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FY18 Reconciliation for FedEx Corp.

Dollars in millions, except EPS	Op	Op	Income	Net	Diluted
			Income	Margin	Taxes1,2	Income1,3	EPS
		GAAP Measure	$4,272	6.5%	($219)	$4,572	$16.79
		FedEx Supply Chain Goodwill and	380	0.6%	1	379	1.39
		Other Asset Impairments8
		TNT Express Integration Expenses6	477	0.7%	105	372	1.36
		FedEx Logistics Legal Matters	8	---	2	6	0.02
		Mark-to-Market Retirement Plan	---	---	(1)	(9)	(0.03)
		Accounting Adjustment5
		Net U.S. Deferred Tax Liability	---	---	1,150	(1,150)	(4.22)
		Remeasurement
		Non-GAAP Measure	$5,137	7.8%	$1,039	$4,169	$15.31

1,2,3,5,6,8See "Footnotes for Non-GAAP Reconciliation Slides" below for details.

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FY17 Reconciliation for FedEx Corp.

Dollars in millions, except EPS	Op	Op	Income	Net	Diluted
		Income	Margin	Taxes2	Income3	EPS1
	GAAP Measure	$4,566	7.6%	$1,582	$2,997	$11.07
	Mark-to-Market Retirement Plan	---	---	(18)	(6)	(0.02)
	Accounting Adjustment5
	TNT Express Integration Expenses6	327	0.5%	82	245	0.91
	FedEx Logistics Legal Matters	39	0.1%	15	24	0.09
	FedEx Ground Legal Matters	22	---	9	13	0.05
	Non-GAAP Measure	$4,954	8.2%	$1,670	$3,273	$12.09

1,2,3,5,6See "Footnotes for Non-GAAP Reconciliation Slides" below for details.

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Footnotes for Non-GAAP Reconciliation Slides

1 - Does not sum to total due to rounding.

2 - Income taxes are based on the company's approximate statutory tax rates applicable to each transaction and give consideration to the effects of the TCJA on the applicable rates.

3 - Effect of "Total other (expense) income" on net income amount not shown.

4 - Fiscal 2019 diluted earnings per share prior to the year-endmark-to-market (MTM) retirement plan accounting adjustment was $13.25.

5 - The MTM retirement plan accounting adjustment reflects the year-end adjustment to the valuation of the company's defined benefit pension and other postretirement plans. For the fourth quarter and full-year fiscal 2018 periods, the MTM retirement plan accounting adjustment includes the one-time $210 million charge recognized in the fourth quarter of fiscal 2018 related to the transfer of approximately $6 billion of FedEx Corporation's tax-qualified U.S. domestic pension plan obligations to Metropolitan Life Insurance Company.

6 - These expenses, including restructuring charges, were recognized at FedEx Corporate and FedEx Express.

7 - Business realignment costs are recognized at FedEx Corporate.

8 - Goodwill impairment charges are not deductible for income tax purposes.

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