Slide 1: Forward-Looking and Safe Harbor Statements
Forward-Looking and SafeHarborStatements 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. Forwardlooking statements include those
Slide 2: Today's Presenters
Today’s Presenters Mike Lenz Executive Vice President and Chief Bert Nappier Executive Vice President-Treasurer, Tax and Corporate Development Financial Officer-Elect 3
Slide 3: Today's Presenters
Today’s Presenters Bert Nappier Executive Vice President-Treasurer, Tax and Corporate Development Mike Lenz Executive Vice President and Chief Financial Officer-Elect
Slide 4: Transaction Overview
Transaction Overview • Federal Express Corporation (“FDX” or “FedEx”) intends to raise $970,000,000 through the offering of Class AA Pass Through Certificates, Series 2020-1 (the “Certificates” or “FDX 2020-1”) The Equipment Notes underlying the FDX 2020-1 Certificates will have the benefit of a sec
Slide 5: FedEx 2020-1 Transaction Summary
FedEx 2020-1 Transaction Summary Class AA Notes: (1) (2) (3) Initial and max LTV for the Certificates calculated as of the Closing Date Weighted Average life is calculated as of the Closing Date The Final Legal Distribution Date for the Certificates is 18 months after the Final Expected Distribution
Slide 6: Key Structural Elements
KeyStructuralElements One Class of Certificates Offered • The Certificates will benefit from a liquidity facility covering three consecutive semi-annual interest payments • FedEx retains option to issue additional subordinated classes of Series 2020-1 certificates at any time in the future Cross-Col
Slide 7: 2020-1 Collateral Overview
2020-1CollateralOverview Section 2
Slide 8: Aircraft Collateral Summary
Aircraft CollateralSummary Maintenance-Adjusted Base Values FedEx will use the following 19 Aircraft as Collateral: • • FedEx obtained appraised values for the aircraft from AISI, Avitas, and mba. Aggregate LMM appraised value is approximately $1.8Bn(1) LMM(1) of the appraisals indicate a collateral
Slide 9: 2020-1 Collateral Fleet Breakdown
2020-1CollateralFleetBreakdown • FedEx has 398 aircraft in its current owned trunk fleet, including 86x Boeing 767F and 40x Boeing 777F aircraft(1) – 19 of these aircraft will serve as collateral for FDX 2020-1; High quality aircraft collateral consisting of freighter, widebody aircraft with strateg
Slide 10: Boeing 767-300F Aircraft Characteristics
Boeing 767-300F AircraftCharacteristics medium-widebody freighter aircraft in the market(1) • The 767-300F’s intercontinental range and leading fuel efficiency positions the aircraft as the leading • 767-300F valuations have remained stable during COVID-19, resisting the headwinds that have signific
Slide 11: Boeing 777F Aircraft Characteristics
Boeing 777F Aircraft Characteristics The 777F is expected to be the dominant long-haul freighter into the 2020s, with no direct competitor(1) Demand for 777F has proven to be able to withstand challenging market backdrops due to its market leading efficiency and payload(1) Operators seeking the most
Slide 12: Freighter Market Overview
FreighterMarket Overview(1) sectors of the global economy • Freighters have benefited from a robust e-commerce delivery economy since 2000, becoming a primary method of delivery for major – 767-300F and 777F are more secure freighter aircraft in terms of future outlook relative to comparable freight
Slide 13: Freighter Market Overview
Freighter Market Overview) Notes: Freighters have benefited from a robust e-commerce delivery economy since 2000, becoming a primary method of delivery for major sectors of the global economy — 767-300F and 777F are more secure freighter aircraft in terms of future outlook relative to comparable fre
Slide 14: Unmatched Global Network Links More Than 99% of World's GDP
Unmatched Global Network Links More Than 99% of World’s GDP • Over 220 countries and territories, every address in the U.S. 679 aircraft and more than 180,000 motorized vehicles More than 5,000 operating facilities; more than 650 airports served worldwide Sorts and processes over 16M shipments per d
Slide 15: Broad Portfolio of Services
Broad Portfolio of FY20 Revenues: $69.2 billion Team Members: More than 500,000 Services Bundle of Solutions 96.8% of U.S. revenue comes from customers of two or more operating companies (% of Revenue) Countries and Territories Served: More than 220 $35.5 Billion 51% FedEx Express (FXE) 1.4% Express
Slide 16: COVID-19 Impact
COVID-19 Impact • The safety and well-being of FedEx team members and customers remains our first priority. Virtually all revenue and expense line items were affected by the pandemic during the fourth quarter. Operating costs increased by approximately $125 million during the • • fourth quarter to p
Slide 17: FedEx Express: Long-Term Opportunity
FedEx Express:Long-Term Opportunity • Integration of TNT expected to 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 18
Slide 18: Milestones for Integration
Milestones for Integration nnetewtworokrikntegration an enhanced international 19 FY22 • •FIinael rpnhaatsioe noaf laairir interoperability FY21 •Integrating linehaul and pickup-and-delivery operations •Will begin offering portfolio of services End of FY20 •European Ground Interoperability-Flow volu
Slide 19: FedEx Ground: Building a Better Business
FedEx Ground: Building A • BetterBusiness Superior service, innovation and speed advantage Three distinct services: • FedEx Ground®, FedEx Home FedEx SmartPost® Flexible business model Delivery®, • • Now operating seven days per week year-round in the U.S., with residential delivery on Sundays With
Slide 20: FedEx Freight: Competitive Advantages
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 fo
Slide 21: Corporate Social Responsibility
CorporateSocialResponsibility Environmental Impact • • • 40% reduction in CO2 emissions intensity on a revenue basis from FY2009-FY2019 Reduced aircraft emissions intensity by 24% through FY2019 from a 2005 baseline Increased FedEx Express vehicle fuel efficiency by 41% through FY2019 from a 2005 ba
Slide 22: FedEx Express Aircraft Fleet Statistics
FedEx Express Aircraft Gross Max Fleet Statistics To Be Delivered !Retiredlin FY StructuralPayl oad Ma31 (Lb s Ai rcraft) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Trunk (Jet!Ai rcraft: Boeing 757-200 63,000 127,100 137,500 175,900 192,600 233,300 261,400 106,600 83,170 119 32 30 13 56
Slide 23: FedEx Express Aircraft Fleet Statistics
FedEx Express Aircraft Fleet Statistics Gross Max Structural Payload ay 31 ‘To Be Delivered(Retired) in FY (ubsiaicrat) © “9018 aor a0te 2018 2020 ‘feat 202z-—«2028=«n0aSORS «RE “Trunk (Jet Aircraft ‘Boeing 787-200 163.000 99a = = = = 2 = ‘Boeing 7676"* 127.100 2 68 87 38 ew on 8 4 = ‘ ‘Boeing MD10-