FedEx Corporation · NYSE:FDX
FedEx — Non-Deal Roadshow (June 2021)
17 slides from FedEx's roadshow presentation, Jun 24, 2021
Slide 1: FedEx Corporation Investor Relations
FedEx Corporation Investor Relations June 24, 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. • 684 aircraft and more than 200,000 motorized vehicles • More than 5,000 operating facilities; more than 650 airports served worldwide • Delivers 19M shipments per day • 570,0
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 pickup times offered with FedEx Extra Hours Service • Expanding our retail convenience network with Walgreens, Dollar General, and our own FedEx Office lo
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 4.9% in January 2021 • FedEx Freight increased rates an average of 4.9%-5.9% in January 2021 • Additional changes to fees and surcharges • Implemented tempor
Slide 7: Aligning Synergies with TNT 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% $90 50% $80 Revenue ($ Billions) 40% $70 Market Share $60 30% $50 $40 20% $30 $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 CY19 CY20 FedEx Ground Revenue FedEx G
Slide 10: FedEx Freight Competitive Advantages
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 Awards& & Responsibility-Awards Recognition Recognition • World’s Most Admired Companies 2021-FORTUNE • This is the 21st consecutive year that FedEx has ranked among the top 20 in the FORTUNE Most Admired Companies List. • America’s Most Responsible
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 $10.00 $9.50 $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 $0.56 $0.60 $0.48 $0.52 $0.50 $0.36 $0.40 $0.44 $0.44 $0.22 $0.28 $0.32 $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