FedEx Corporation · NYSE:FDX
FedEx — Non-Deal Roadshow (March 2021)
17 slides from FedEx's roadshow presentation, Mar 18, 2021
Slide 1: FedEx Corporation Investor Relations
FedEx Corporation Investor Relations March 18, 2021 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. • 682 aircraft and more than 200,000 motorized vehicles • More than 5,000 operating facilities; more than 650 airports served worldwide • Delivers 18M shipments per day • More
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 • FedEx brand unites distinct operating companies • Significant majority of U.S. revenue derived from custom
Slide 4: FedEx 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: FedEx Business Trends; COVID-19
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 • Expanding our retail convenience network with Walgreens, Dollar General, and our own FedEx Office l
Slide 6: Pricing Strategy: Grow Yields
92% 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 60,000 U.S. locations. Now U.S. consumers can pick up their packages at more than 20,000 convenient,
Slide 7: FedEx Express: Long-Term Opportunity; Aligning Synergies
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 13 Aligning Synergies w
Slide 8: Milestones for Integration; FedEx Ground: Building A Better Business
Milestones for Integration End of FY20 FY21 FY22 • European Ground • Integrating linehaul • • Final International air phase of air Interoperability- and pickup-and- network network integration Flow volume delivery operations interoperability between networks supported by • Will begin offering techno
Slide 9: Residential Package Services; Ground Revenue Market Share
Strong Portfolio of Residential Package Services FedEx Express FedEx Ground FedEx Ground • 1–2 days transit time Home Delivery: Ground Economy: • Time-definite • 1–5 days transit time • 2–8 days transit time • MBG* • Day-definite • No MBG • Declared value up • MBG* • No declared value to $50K • Decl
Slide 10: FedEx Ground Annual Revenue; FedEx Freight Competitive Advantages
FedEx Ground Annual Revenue of $27B with a CAGR of 13% Since 2001 $28 $24 Revenue ($ Billions) $20 $16 $12 $8 $4 $0 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 FedEx Ground/FedEx Ground Economy Revenue Source: FedEx analysis, $22.7 billion reve
Slide 11: LTL Industry Revenue Market Share; Carbon-Neutral Goal
LTL Industry Revenue Market Share 30% FedEx Yellow 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 CY19 CY20 Source: FedEx Analysis 21 FedEx Commits to Goal to Achieve Carbon-Neutral Operations by 2040 Key steps toward r
Slide 12: Corporate Social Responsibility
Corporate Social Responsibility Environmental Impact • 40% reduction in CO2 emissions intensity on a revenue basis from FY09-FY19 • Reduced aircraft emissions intensity by 24% through FY19 from a 2005 baseline • Increased FedEx Express vehicle fuel efficiency by 41% through FY19 from a 2005 baseline
Slide 13: Corporate Operating Margin; Earnings Per Share
Corporate Operating Margin 12.0% 10.0% 8.2% 8.0% 7.6% 7.8% 7.5% 6.5% 6.4% 6.0% 4.5% 4.0% 3.5% 2.0% 0.0% FY17 FY18 FY19 FY20 GAAP Adjusted Non-GAAP reconciliations are included herein. 25 Earnings Per Share $18.00 $16.79 $16.00 $15.31 $15.52 $14.00 $12.09 $12.00 $11.07 $10.00 $9.50 $8.00 $6.00 $4.90
Slide 14: Capital Expenditures; Dividends Per Share
Capital Expenditures (% of Revenues) 12.0% 10.0% 9.6% 9.2% 8.5% 8.7% 8.5% 7.9% 8.0% 6.0% 4.0% 2.0% 0.0% FY15 FY16 FY17 FY18 FY19 FY20 27 Dividends Increased at a 5-Year CAGR of 26% $2.50 Dividends Per Share $2.00 $1.50 $1.00 $0.50 $0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY1
Slide 15: Explanatory Note on Non-GAAP Financial Measures
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-GAA
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 Margin6 Taxes1 Income2 EPS GAAP Measure $4,466 6.4% $115 $540 $2.03 Mark-to-Market Retirement Plan --- --- 902 2,981 11.22 Accounting Adjustment3 TNT Express Integration Expenses5 388 0.6% 74 314 1.18
Slide 17: FY17 Reconciliation; Footnotes for Non-GAAP Slides
FY17 Reconciliation for FedEx Corp. Dollars in millions, except EPS Op Op Income Net Diluted Income Margin Taxes1 Income2 EPS6 GAAP Measure $4,566 7.6% $1,582 $2,997 $11.07 Mark-to-Market Retirement Plan --- --- (18) (6) (0.02) Accounting Adjustment3 TNT Express Integration Expenses5 327 0.5% 82 245