Fedex Corporation · NYSE:FDX
Fedex — Non-Deal Roadshow (March 2022)
17 slides from Fedex's roadshow presentation, Mar 17, 2022
Slide 1: FedEx Corporation Investor Relations
FedEx Corporation Investor Relations March 17, 2022 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 and underlying assumptions.
Slide 2: Unmatched Global Network / Broad Portfolio of Services
Unmatched Global Network Links More Than 99% of World’s GDP • Over 220 countries and territories, every address in the U.S. • 697 aircraft and more than 210,000 motorized vehicles • More than 5,000 operating facilities; more than 650 airports served worldwide • Delivers 16.5M shipments per day • Nea
Slide 3: Strategic Operating Principles / Bundle of Solutions
Strategic Operating Principles “Ultimately, this creates greater value for our customers and shareholders alike” - Frederick W. Smith, FedEx Corporation – Chairman & CEO Compete Collectively Operate Collaboratively Innovate Digitally • FedEx brand unites distinct • Strategic shift to build a • Innov
Slide 4: Long-Term Financial Goals / Positioning for Long-Term Growth
FedEx Long-Term Financial Goals • Increase EPS 10%–15% per year • Grow profitable revenue • Achieve 10%+ operating margin • Improve cash flows • Increase ROIC • Increase returns to shareowners 7 Positioning for Long-Term Growth • E-commerce, including B2B e-commerce, is increasing demand for our ser
Slide 5: Business Trends: Meeting E-Commerce Demands
FedEx Business Trends Meeting E-Commerce Demands • Year-round, seven-day-per-week U.S. residential delivery by FedEx Ground • Significantly later pick up times offered with FedEx Extra Hours Service • Widespread retail convenience network with Walgreens, Dollar General, and our own FedEx Office loca
Slide 6: Pricing Strategy: Grow Yields
Pricing Strategy: Grow Yields • Focused on long-term profitable growth • FedEx Express and FedEx Ground increased shipping rates an average of 5.9% in January 2022 • FedEx Freight increased rates an average of 5.9% to 7.9% in January 2022 • Additional changes to fees and surcharges • Continuing peak
Slide 7: FedEx Express: Aligning Synergies / Milestones for Integration
Aligning Synergies with Integration focused on more complex, higher value markets Improved Efficiency of Grow Revenue with Optimized Pickup and Integrated Global Staff Functions and Best-in-Class Service Delivery Operations Express Network Processes (SG&A) Portfolio 13 Milestones for Integration End
Slide 8: FedEx Ground: Building a Better Business
FedEx Ground Building a Better Business • Superior service, innovation, and speed advantage • Three distinct services: FedEx Ground®, FedEx Home Delivery®, FedEx Ground Economy® • Flexible business model • Now operating seven-day residential delivery to virtually all of the U.S. population • FedEx G
Slide 9: Ground Revenue Market Share Has Grown to More Than 30%
FedEx Ground Revenue Market Share Has Grown to More Than 30% $1 10 50 % $1 00 Revenue ($ Billions) $9 0 40 % $8 0 Market Share $7 0 30 % $6 0 $5 0 20 % $4 0 $3 0 $2 0 10 % $1 0 $0 0% CY9 8CY9 9CY0 0CY0 1CY0 2CY0 3CY0 4CY0 5CY0 6CY0 7CY0 8CY0 9CY1 0CY1 1CY1 2CY1 3CY1 4CY1 5CY1 6CY1 7CY1 8CY1 9CY2 0CY
Slide 10: FedEx Freight: Competitive Advantages / LTL Market Share
FedEx Freight Competitive Advantages • The only nationwide LTL that offers Priority and Economy services 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
Slide 11: Corporate Social Responsibility: Carbon-Neutral Operations by 2040
FedEx Commits to Goal to Achieve Carbon-Neutral Operations by 2040 Key steps toward reaching the carbon neutral goal include: Vehicle Electrification. By 2040, the entire FedEx parcel pickup and delivery fleet will be zero–emission electric vehicles Sustainable Fuels. FedEx will continue to invest i
Slide 12: Corporate Social Responsibility - Awards & Recognition
Corporate Social Corporate Responsibility- Social Responsibility -Awards Awards &&Recognition Recognition • World’s Most Admired Companies 2022 - FORTUNE • This is the 22nd consecutive year that FedEx has ranked among the top 20 in the FORTUNE Most Admired Companies List. • America’s Most Responsibl
Slide 13: Earnings Per Share / Capital Expenditures
Earnings Per Share $25.00 $20.00 $19.45 $18.17 $16.79 $15.31 $15.52 $15.00 $9.50 $10.00 $4.90 $5.00 $2.03 $0.00 FY18 FY19 FY20 FY21 GAAP Adjusted Non-GAAP reconciliations are included herein. 25 Capital Expenditures (% of Revenues) 12.0% 10.0% 9.6% 8.5% 8.7% 8.5% 7.9% 8.0% 7.0% 6.0% 4.0% 2.0% 0.0% F
Slide 14: Dividends Per Share
Dividends Increased at a 5-Year CAGR of 21% $3.00 $2.60 $2.60 $2.60 $2.50 Dividends Per Share $2.00 $2.00 $1.60 $1.50 $1.00 $1.00 $0.80 $0.60 $0.52 $0.56 $0.50 $0.40 $0.44 $0.44 $0.48 $0.32 $0.36 $0.22 $0.28 $0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 F
Slide 15: FY21 and FY20 Reconciliation for FedEx Corp.
FY21 Reconciliation for FedEx Corp. Dollars in millions, except EPS Op Op Income Net Diluted Income Margin Taxes1 Income2 EPS3 GAAP Measure $5,857 7.0% $1,443 $5,231 $19.45 Mark-to-Market Retirement Plan --- --- (281) (895) (3.33) Accounting Adjustments4 Loss on Debt Extinguishment --- --- 96 297 1.
Slide 16: FY19 and FY18 Reconciliation for FedEx Corp.
FY19 Reconciliation for FedEx Corp. Dollars in millions, except EPS Op Op Income Net Diluted Income Margin3 Taxes1 Income2 EPS GAAP Measure $4,466 6.4% $115 $540 $2.03 Mark-to-Market Retirement Plan --- --- 902 2,981 11.22 Accounting Adjustment4 TNT Express Integration Expenses5 388 0.6% 74 314 1.18
Slide 17: Footnotes for Non-GAAP Reconciliation Slides
Footnotes for Non-GAAP Reconciliation Slides 1 – Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction. 2 – Effect of “total other (expense) income” on net income amount not shown. 3 – Does not sum to total due to rounding. 4 –The MTM retirement plan