#11 2 FedEx Investors Meeting June 29, 2022 Mickey Foster Vice President Investor Relations 6/28/22 1#23 4 Investor Relations Team Mickey Foster Elizabeth Allen Steve Hughes Jeff Smith Matt DeBerry Robyn Moye Forward Looking Statements and Non-GAAP Financial Measures Certain statements in this presentation may be considered forward-looking statements, such as statements regarding future financial targets, business strategies, management's views with respect to future events and financial performance, and the assumptions underlying such targets, strategies, and statements. Forward- looking statements include those preceded by, followed by, or that include the words "will," "may," "could," "would," "should," "believes," "expects," "forecasts," "anticipates," "plans," "estimates," "targets," "projects," "intends," or similar expressions. 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; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; our ability to achieve our fiscal 2025 financial performance goals; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. Postal Service, including strategic changes to its operations to reduce its reliance on the air network of FedEx Express; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflict between Russia and Ukraine; our ability to match capacity to shifting volume levels; the effect of intense competition; an increase in self-insurance accruals and expenses; our ability to effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions and other strategic transactions; the future rate of e-commerce growth and our ability to successfully expand our e-commerce services portfolio; the timeline for recovery of passenger airline cargo capacity, evolving or new U.S. domestic or international laws and government regulations, policies, and actions; future guidance, regulations, interpretations, challenges, or judicial decisions related to our tax positions; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers providing services on their behalf; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography, our ability to achieve our goal of carbon-neutral operations by 2040; 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 (the "SEC"). 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. The financial targets and guidance included in this presentation reflect FedEx's expectations for fiscal years 2023 through 2025 and are provided on a non-GAAP basis as FedEx cannot predict certain items which are included in reported GAAP results. See "Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures" below for additional information on non-GAAP financial measures and reconciliations of non-GAAP financial measures to GAAP financial measures. The financial targets and outlook provided herein assume the company's current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, and no additional adverse geopolitical developments. 6/28/22 2#35 6 Agenda WEDNESDAY, JUNE 29 FedEx Investors Meeting June 29, 2022 fedex.com 8:30 AM Presentations Lunch Q&A 1:00 PM Buses depart to airport & hotel 6/28/22 3#47 8 Raj Subramaniam President & Chief Executive Officer Our Strategic Outlook and Vision 6/28/22 4#59 10 Our global network is unmatched Global scale and complexity Unrivaled access Flexible, multi-modal asset base FedExⓇ Express The largest express transportation company in the world FedExⓇ Ground Supporting cost-effective business and residential package shipping FedEx Freight Priority and economy less-than-truckload (LTL) freight shipping Anchorage Oakland Indianapolis Memphis Fort Worth Toronto Newark Greensboro Liège Cologne Paris Shanghai Guangzhou As of June 17, 2022, routes into and out of Russia, Ukraine, and Belarus are suspended. 6/28/22 5#611 12 Intersection of physical and digital Evolve the way we utilize our network Enhance customer experiences Unlock new revenue streams Our focus today DELIVER TODAY innovate for tomorrow FedEx VEJ-II-S 6/28/22 6#713 14 DELIVER TODAY INNOVATE FOR TOMORROW Drive yields through service Expand margins through lower cost to serve Elevate returns through capital efficiency Enable intelligent supply chains Lead in sustainability Empower our people COMPETE COLLECTIVELY | OPERATE COLLABORATIVELY INNOVATE DIGITALLY Highest priorities to achieve strong TSR by FY25 DELIVER TODAY Drive yields through service STRATEGIC IMPERATIVES Target attractive market segments Drive market-leading service levels Expand margins through lower cost to serve • • Ground: 11 12% adjusted margins by FY25* Express: 8-9% adjusted margins by FY25* Freight: 20-22% adjusted margins by FY25* 3060 Elevate returns through capital efficiency Deliver ROIC improvement* Reduce fleet investment Increase dividend payout to 25% by FY25* *Non-GAAP financial measure, see appendix for more information 6/28/22 7 ས#815 16 FedEx FedEx FedEx Disciplined execution targeting to deliver by FY25: Stable, sustained revenue growth in attractive segments Expand margins and profitability Lower our capital intensity and increase our ROIC focus $105B-$110B Revenue (4-6% CAGR) 10% adjusted consolidated operating margin* 11.5%+ ROIC* 25%+ dividend payout* 18-22% TSR via a balanced approach ALL TARGETS FOR FY25 Our people move us forward P Fel *Non-GAAP financial measure; see appendix for more information FedEx 6/28/22 8#917 18 We will continue our industry leadership in ESG OUR TOP PRIORITIES INCLUDE: 1. Converting delivery fleet to zero-emission electric vehicles 2. Launching carbon neutral shipping 3. Transforming facilities to become energy efficient 4. Leading in the market in sustainable solutions To reach our carbon neutral commitment by 2040 (reducing 1B metric tons CO2e/yr) FedEx Express DELIVER TODAY Drive yields through service Expand margins through lower cost to serve Elevate returns through capital efficiency INNOVATE FOR TOMORROW Enable intelligent supply chains Lead in sustainability Empower our people COMPETE COLLECTIVELY | OPERATE COLLABORATIVELY INNOVATE DIGITALLY 6/28/22 9#1019 20 Brie Carere Executive Vice President & Chief Customer Officer BETIS Global Commercial Strategy and Market Backdrop ☐ 6/28/22 10#1122 21 5-7%1 GLOBAL GDP GROWTH Commercial strategy Clear view of the market Grow in the right segments Small/Medium Business, B2B, Intra-Europe, and Intercontinental Deliver premium service and differentiated portfolio Achieve top-of-market and inflation + pricing TARGET REVENUE GROWTH: 4-6% FY22-25 CAGR How will we deliver? Projections assume a normalized economic environment with above-average inflation FY22-25 CAGR 2-3%² US REAL GDP GROWTH 3-4%² US CORE- INFLATION 1. International Monetary Fund - World Economic Outlook | 2. Congressional Budget Office Report An Overview of the Economic Outlook: 2021 to 2031 FedEx 11 6/28/22#1223 e 50% 24 24 Operating in a durable market DOMESTIC ADV GREW +30% IN COVID, 3X THE TREND +10% 60M 55M 50M 46M +31% 84M 79M 6/28/22 2016 2017 2018 2019 2020 2021 PRE-COVID COVID U.S. Domestic Parcel Market ADV E-commerce drives significant opportunity for FedEx Ground CAGR OVER THE PAST DECADE: EXPRESS MARKET +0.5% 116M 14M GROUND MARKET +8.5% 79M 12M 102M (88%) 25M 28M 8M 66M (84%) 12M 13M (53%) 20M (71%) 2000 2010 2020 2026 (est.) Express Market Ground Market U.S. Domestic Parcel Market ADV 12#13FedEx will power the democratization of e-commerce NON-AMAZON MARKET WILL CONTINUE GROWING AT STABLE RATES: ADV +4% +4% 57M 2021 67M 2025 (est.) 25 U.S. Domestic Parcel Market ADV (Excluding Amazon) You can trust our pros to pack and ship it. allu spe By Fods ☆ Service is the cornerstone of our value proposition Purple Promise: I will make every FedEx experience outstanding. falma FedEx 26 6/28/22 13#14Differentiate through Digital CONTINUOUSLY INNOVATING IN OUR OFFERINGS: 27 27 Estimated Delivery Date (EDD) and Estimated Delivery Time Window (EDTW) Picture Proof of Delivery (PPOD) launching in US prior to peak New online shipping platform FedEx Ship Manager Focus on high-value segments: Small and medium-sized customers UNMATCHED VALUE PROPOSITION TO SMALL AND MEDIUM-SIZED (SMB) CUSTOMERS Industry-leading rewards program Most competitive portfolio Direct relationship with small business customers 28 6/28/22 FedEx 14#1530 29 H Focus on high- value segments Win B2B, gaining share via bundled offering & service excellence Medi Finding the right customer mix DEEPLY EMBEDDED OPERATIONS WITH THE LARGEST RETAILERS Walmart Save money. Live better. EVERY SEASON STARTS AT DICK'S SPORTING GOODS. LOWE'S O TARGET a Best parcel LTL bundle Visibility, monitoring, and intervention Vertical expertise with specialized solutions Il se FedEx FedEx FedEx Large Box FedEx 6/28/22 15#1631 32 Yield premium with product differentiation and service delivery ☆ FDX YIELD1 PREMIUM OVER UPS +7% -+15% +14% FY19 FY20 FY21 +9% FDX FY22 UPS 1. Represents Domestic Composite Ground and Express FedEx. Pricing playbook in action Ground General rate increases CEX Continuously revisit contracts Rigorous surcharge implementation Real-time pricing technology Win with the bundle 6/28/22 BILOPEA 16#1733 34 International features large, growing markets FY19 DEMAND IN M TONNES 4.2 ASIA TO EUROPE FY21 3.6 2.7 FY25 TRANSPACIFIC TRANSATLANTIC Clear-eyed on the return of commercial capacity CAPACITY TO GRADUALLY RETURN THROUGH FY24 100 50 - PAX Capacity* Projections 2020 2021 2022 2023 2024 APAC to Americas - APAC to EU/MEISA EU/MEISA to Americas *Source: CSMA analysis, Seabury capacity data, Industry reports. Note: *Forecast from Q4 2021 onwards. Positioned to win key markets Transpacific market leader Competitive European offering Leverage Asia-Pacific strength into Europe Headwinds incorporated into our forecast 6/28/22 17#1835 36 FedEx Investors Meeting June 29, 2022 Focused on Execution COMMERCIAL STRATEGY WILL DELIVER 4-6% REVENUE GROWTH FY22-25 CAGR GROW IN TARGET CUSTOMER SEGMENTS PRICE PREMIUM BY PRODUCT DIFFERENTIATION HIGHER SERVICE STANDARDS 6/28/22 18#1937 38 Mike Lenz Executive Vice President & Chief Financial Officer Financial Initiatives, Outlook, and Targets 6/28/22 19#2039 FY25 execution targets drive strong total shareholder returns Stable, sustained revenue growth in attractive segments FY25 TARGETS $105B-$110B Revenue 4-6% CAGR Expand adjusted operating OVERALL¹ margins 10% GROUND1 11-12% EXPRESS¹ 8-9% FREIGHT¹ 20-22% Lower capital intensity and drive higher ROIC ROIC ~200 bps 11.5%+ CAPEX/Rev DIVIDEND PAYOUT¹ ≤6.5% 25%+ 1. Non-GAAP financial measure; see appendix for more information; 2. Assumes no change in P/E multiple in order to isolate impact of net income growth and dividend yield 40 40 Margin expansion is the biggest opportunity and our top priority FY25 ADJUSTED OP. MARGIN TARGET FedEx Ground 11 -12%* FedEx Express 8-9%* FedEx. FedEx Freight 20-22%* Consolidated 10%* *Non-GAAP financial measure; see appendix for more information $3B- $4.5B Adj. Op. Profit improvement¹ 14-19% Adj. EPS CAGR1 6/28/22 18-22% Total Shareholder Return delivered² Differentiated portfolio & service Enhanced revenue quality Improved productivity & asset utilization 20#2141 0011001 1001 11 10110 0 10011 Enterprise transformation MODERNIZATION INITIATIVES عمالها 111111100 1110 00000001 6/28/22 Business services at scale Modernized customer support infrastructure Advanced digital capabilities Specialized centers of excellence WILL DRIVE $1B OVERHEAD REDUCTION IN SUPPORT OF OPERATING MARGIN TARGETS Efficient capital allocation will drive higher returns 22 42 CASH FLOW PRIORITIES 1. Invest in high ROIC opportunities 2. Maintain a healthy balance sheet 3. Higher returns to shareholders FY25 TARGETS +200 bps ROIC⭑* CapEx 6.5% of revenue Minimum BBB/Baa2 credit rating ► Pension liability management 25%+ Dividend payout* Residual capital for share repurchases *Non-GAAP financial measure; see appendix for more information 21#2243 44 New era of lower capital intensity Operational, technological, and digital innovation to maximize utilization Rigorous 'ROIC lens' to all new capital outlays CAPITAL EXPENDITURES 7.9% of revenue 7.2% of revenue 6.5% of revenue FY18 - FY21 FY22 FY25 Target Steady reduction over forecast period and committed to continue reduction beyond FY25 Aircraft fleet investments ramp down to FY25 and beyond AIRCRAFT CAPEX OUTLOOK $2.4B $1.9B $1.7B $1.5B Completing intense phase of fleet modernization Youngest, most fuel- efficient fleet vs. competitors Partner network to optimize cost of lift FY21/22 FY23 FY24 FY25 6/28/22 22#2345 IN LAST 5 YEARS, WE HAVE RETURNED Dividend payout to increase to 25%+ by FY25* $4.60 $3.4B $3.00 in dividend payments $4.7B in share repurchases 21% 16% FY25 financial outlook 46 46 FY22 FY23 FY24 FY25 Target payout ratio: 25%+* 6/28/22 *Non-GAAP financial measure; see appendix for more information; dividend payout ratio calculated on previous year adj. net income CONSOLIDATED ADJUSTED REVENUE $105B-$110B OP. MARGIN* 10% $94B FY22 FY25 ROIC⭑ 11.5%+ 9.7% CAPEX (% of revenue) <6.5% 7.2% FY22 FY25 FY22 FY25 7.3% FY22 FY25 DIVIDEND PAYOUT* 16% FY22 +25%+ FY25 *Non-GAAP financial measure; see appendix for more information; dividend payout ratio calculated on previous year adj. EPS 23#24Balanced commitment to driving TSR 12 47 4-6% REVENUE EXPANSION Executive long-term incentives linked to TSR going forward TSR1 18-22% 10-11% MARGIN EXPANSION 4-5% CASH PAYOUT YIELD2 Balanced growth and focus on margin expansion Rigorous ROIC lens to all capital allocation FedEx Investors Meeting June 29, 2022 48 6/28/22 1. Assumes no change in P/E multiple in order to isolate impact of net income growth and dividend yield 2. Inclusive of dividends, buybacks, pension fund contribution, and unallocated cash flows 24#25John Smith President & Chief Executive Officer FedEx Ground 49 49 50 6/28/22 FedEx Ground FedEx Ground: Achieving Sustained Double-Digit Margin 25#2651 52 Achieving sustained double-digit margin PATH TO 11-12% ADJ. OP. MARGIN* with upside beyond Targeted growth in high value segments Reduce cost to serve Improve asset utilization FedEx Large Box *Non-GAAP financial measure; see appendix for more information E-commerce growth has changed the market 90% incremental market growth over past decade from e-commerce Ground domestic parcel market volume has grown by 8.5% CAGR Residential volume now over 80% of the US domestic parcel market 6/28/22 26#2753 54 We have invested to develop a 'future-ready' network DELIVER MORE +73 facilities since FY19 6/7 day operations DELIVER BETTER Over 72% of Home Delivery packages delivered in <2 days Vehicle safety technology DELIVER SMARTER Route optimization technology increasing service provider stops per hour by 7.5% Covid accelerated growth and profitability, labor challenges offset those gains #fedexstrong +34% REVENUE FY21 +160 BPS MARGINS Driven by residential volume growth and surcharge profitability lift FY22 +9% REVENUE -250 BPS MARGINS Labor contraction created inefficiencies and increased costs 6/28/22 27#2855 56 Investments and flexibility have positioned the business to enable long-term success edEx. INVESTMENT IN OUR PEOPLE Higher labor retention and staffing FLEXIBILITY OF OUR MODEL Flat P&D costs over past 3 years FedEx FedEx Gore DELIVER TODAY 8.0% FY22 *Non-GAAP financial measure; see appendix for more information Positioned to sustainably deliver double-digit margins + IMPROVED PORTFOLIO PRODUCTIVITY AND COST LEVERS PROFITABILITY 11-12% FY 25* 6/28/22 28#2958 57 40 Annual cost savings reach $1 billion in 3 years Productivity Gains Modernizing dock operations Optimizing linehaul Ex P Asset Utilization Maximizing physical capacity Increasing digital insights Deliver Today 11-12% FEDEX GROUND ADJUSTED OPERATING MARGIN TARGET BY FY25* Operational Expense Controlling liability costs Optimizing staffing and recruiting Evolving service provider model $1B in cost benefits by FY25 Focus on maximizing asset utilization and ROIC Consistent safety and service excellence FedEx Ground *Non-GAAP financial measure; see appendix for more information USDOT 265752 29 6/28/22#30FedEx Investors Meeting June 29, 2022 59 60 60 Lance Moll President & Chief Executive Officer FedEx Freight FedEx Freight FedEx Fr SOOT 6/28/22 30#3161 62 32 6/28/22 " FedEx P39730 FedEx Freight fedex.com 1.800.GoFedEx FedEx Freight: Continued Focus on Profitable Growth FedEx Freight - accelerating improved financial performance in a dynamic market OP. MARGIN 8.2% 8.1% 7.2% 7.2% 6.1% 12.8% 1,005 615 580 490 421 371 17.4% FY22 YOY +22% REVENUE 1,663 +18% REVENUE QUALITY* FY16 FY17 FY18 FY19 FY20 FY21 FY22 OP. INCOME ($M) "Measured as revenue per shipment +460 bps OP. MARGIN INCREASE 31#3263 64 Driving 20-22% adjusted operating margin by FY25 ▸ Improve revenue quality Pricing discipline and profitable share growth ▸ Invest in our people and network Deliver outstanding service ▸ Continue to innovate Dimension in Motion and RFID Technology *Non-GAAP financial measure; see appendix for more information Leveraging our unique portfolio to deliver: ▸ Expand Freight Direct Profitable e-commerce offering Grow Cross-border Significant profitable growth opportunity ▸ Enable FedEx Ground and Express Lower cost-to-serve and improve customer experience FedEx 21293HX FedEx 6/28/22 32#3365 55 66 66 We have earned the right to win the market in coming years 20-22% FEDEX FREIGHT ADJUSTED OPERATING MARGIN TARGET BY FY25* Continued focus on profitability and share growth Strategically invest in our people and network Profitably grow differentiated Freight Direct and cross-border offerings *Non-GAAP financial measure; see appendix for more information FedEx Investors Meeting June 29, 2022 6/28/22 33#3468 67 Richard Smith President & Chief Executive Officer-elect FedEx Express FedEx Express: Profitability Through Lower Cost to Serve and an Integrated European Network F 34 6/28/22#35Express priorities and financial objectives Diversify revenue streams by leveraging into high-value segments Lower cost to serve through enhanced network flexibility and operational optimization Drive profitability with an integrated European network 8-9% ADJUSTED OP. MARGIN BY FY25* 69 *Non-GAAP financial measure; see appendix for more information FedEx Express FedEx 6/28/22 Commercial priorities: leveraging our strengths with greater focus SERVICE DIFFERENTIATION + TARGETED GROWTH ACROSS... Attractive customer segments Higher-value product offerings Strategic markets and geographies Fedbe FA FedEx. FedEx. 70 70 35#3671 72 How we win PATH TO 8-9% ADJ. OP. MARGIN* 6/28/22 Optimizing our assets and modernizing our processes Leveraging FedEx Logistics to manage third-party linehaul Increasing network collaboration Integrated Europe network capabilities FelEx Express fedex.com DIDO 0222333 The Wewer Fe Karen Reddington Regional President - Europe FedEx Express *Non-GAAP financial measures; see appendix for more information 36#3773 FedEx Express 6 Das lie TNT closed the biggest gap in the FedEx portfolio > 50% EXPRESS GLOBAL TRADE REVENUES TOUCH EUROPE; FEDEX FOOTPRINT WAS SMALL TNT DELIVERED SCALE... ...THAT REDUCED COST TO SERVE X 4.8 -50% INTRA-EUROPE ECONOMY MARKET SHARE ROAD COST PER LB Pre-TNT Post-TNT Building a comprehensive network across express, ground, and freight AIR EXPRESS $75-$100m air network benefits from unified network 10% more capacity, 13% fewer flights ► Expansive next-day and noon coverage Intercontinental injection points support partner networks 540+ a Depots 74 GROUND & FREIGHT Premium parcel and freight network Major European centers connected within 48 hours Helsingborg 55,000+ Weekly road trips Kingsbury Hamburg s Arham Dartford Brussels Venlo Wiesbaden Nuremberg Warsaw Dietzenbach Marly-le-Ville Vienna Milan Barcelona Madrid 6/28/22 圓品 16 Transit hubs 37#3875 Primed with a fully competitive commercial proposition 76 reaux INTERCONTINENTAL Differentiated proposition; fastest to the US INTRA-EU Value over volume in the air Leverage freight/parcel bundle to capture market and drive yields FedEx Fed DOMESTICS Swap out domestic capacity for higher international yields 6/28/22 Focused on sustained profit growth in Europe +$400 - $600M THROUGH FY25 FedEx Express WE WILL ACHIEVE THIS GOAL BY EXECUTING ON THREE KEY DRIVERS: Air network integration ▶ SG&A reduction ► Continued business optimization VFJ-11-5 fedex.com 0800 0222333 The Time 38#3978 77 FedEx FedEx Investors Meeting June 29, 2022 Large Bon Lean into our strengths and optimize our assets to sustain profitable growth ADJUSTED OPERATING MARGIN TARGET⭑ 8-9% FOCUS ON HIGH VALUE SEGMENTS IMPROVED ASSET UTILIZATION & NETWORK COLLABORATION FULLY INTEGRATED NETWORK IN EUROPE *Non-GAAP financial measure; see appendix for more information 6/28/22 39#4079 elif ope Network 2.0 $2B+ FUTURE VALUE UNLOCK BY FY27 ANNUAL modifier ob ~ $2B ONE-TIME EXPENSE ob)) # modifier ob Mirror bpy.context.scen lected" INITIAL GOALS BY FY27 100 FEWER STATIONS THAN TODAY 10%+ P&D ROUTE EFFICIENCY VS. TODAY OPTIMIZED LINEHAUL NETWORK Operating collaboratively in action ETIS FedEx Ground 80 Raj Subramaniam John Smith President & CEO FedEx Ground FedEx Express fedex.com Richard Smith FedEx Express Lance Moll FedEx Freight 6/28/22 40#41Our networks present an opportunity to operate collaboratively, unlocking value and efficiencies 81 United States FXE Station FXG Station FXF Station Operating collaboratively in action FedEx Ground 332 82 6/28/22 dEx Freight FedEx FedEx Ground FedEx Freight FedEx Express 41#4283 84 FedEx Investors Meeting June 29, 2022 Rob Carter Executive Vice President & Chief Information Officer 6/28/22 42#4386 98 85 Unlocking Potential with Digital Modernizing to deliver today Full architectural transformation powered by: Cloud-enabled data services Composable software Machine learning and Al FedEx Express 43 6/28/22#4488 87 48 4:136px}.bs-custom erface-select.shown interface-select .dra menu.show{paddin elect-reset-butto size:13px;curs weight:500; We are moving to cloud-enabled, zero data center, zero mainframe environment Wansform kit-fon Li (pad -height:30px wpadding:30p Roli-connects wpfr-1 input (width px;text-align:center ner(margin-top:12px). op:20px)#mobile-filters position:relative rap).filter Hnterfa Secure Flexible Resilient Saving $400M in annual run rate We are activating network insight to extract new value FedEx Ground FedEx Freight CUSTOMERS DATA IS AT THE CORE FedExⓇ Express FedEx Logistics OPERATIONS 44 6/28/22#45Dataworks makes supply chains smarter 89 Open new revenue streams and move up in e-commerce Digitize our customers' supply chains Fuel internal optimization and collaboration EXTERNAL DATA ECOSYSTEM CUSTOMER DATA FEDEX DATA Our Operational Insights Platform connects decisions across opcos and domains 90 90 Linehaul & Sort Compete Collectively Service Improvement Pickup & Delivery OIP Operate Collaboratively Forecasting 000 Facilities Innovate Digitally Others... 6/28/22 45#46Leveraging package fingerprint, we built FedEx Surround 91 22 92 FEDEX SURROUND Package Fingerprint Time in Advisories Transit Same Day Delivery 6/28/22 We partnered 1:1 with large retailers to uncover new paths to value across the e-commerce ecosystem 1:1 e-commerce collaboration 1 Order Fulfillment Trailer Recommendations Visibility Visibility Performance Visibility Root Cause Insights Integrated Forecasting 46#47Enabling a collaborative network and quality returns through advanced digital systems New Ground technology capabilities 93 Breakthrough SenseAware tracking transformation Dataworks' smarter supply chain evolution Open e-commerce ecosystem enablement FedEx. 00 Robots, autonomous vehicle, and electric fleet 94 44 Upskilled digital talent and next gen workforce Data drives how we DELIVER TODAY innovate for tomorrow 6/28/22 Fed FedEx 47#4896 96 95 FedEx Investors Meeting June 29, 2022 DELIVER TODAY innovate for tomorrow 48 6/28/22#4998 80 97 40 FedEx Investors Meeting June 29, 2022 DELIVER TODAY innovate for tomorrow 49 6/28/22#50APPENDIX RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES Fiscal 2022 and 2021 Financial Measures FedEx reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or "reported"). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or "adjusted") financial measures, including our fiscal 2022 and 2021 consolidated adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted earnings per share ("EPS"), fiscal 2022 consolidated return on invested capital ("ROIC"), and fiscal 2022 adjusted dividend payout ratio. Adjusted Operating Income and Margin, Net Income, and Diluted EPS Our fiscal 2022 and 2021 consolidated operating income and margin, net income, and diluted EPS have been adjusted to exclude, as applicable: • • • . • Mark-to-market ("MTM") retirement plans accounting adjustments in fiscal 2022 and 2021; Business realignment costs in fiscal 2022 and 2021; Costs related to a FedEx Ground legal matter in fiscal 2022; TNT Express integration expenses incurred in fiscal 2022 and 2021; and Loss on debt extinguishment in fiscal 2021. We have provided these non-GAAP financial measures for the same reasons that were outlined in our fourth quarter fiscal 2022 earnings release issued on June 23, 2022. Return on Invested Capital and Adjusted Dividend Payout Ratio Our consolidated ROIC for fiscal 2022 is calculated, in part, using non-GAAP financial measures. Adjusted operating income is included in the numerator, as we believe it is most indicative of our core operating performance. We add back to adjusted operating income interest on average operating leases, which we believe improves the comparability of ROIC between FedEx and other companies with different capital structures, and subtract adjusted current income taxes calculated using our adjusted current income tax rate in order to determine the after-tax adjusted return earned in the current period. Additionally, one input of the denominator is average net working capital as of May 31, 2022 and May 31, 2021, adjusted to exclude (i) average cash and cash equivalents in excess of those required to support daily business operations and cash equivalents held in restricted offshore accounts from average current assets, as these items do not contribute to the generation of operating returns, and (ii) the current portion of long-term debt and operating lease liabilities from average current liabilities, as we consider these items part of total invested capital used to support the generation of operating returns. We have provided reconciliations of our 2022 adjusted current income tax rate to our 2022 current income tax rate and of our average adjusted total current assets and total current liabilities as of May 31, 2022 and May 31, 2021 to our average total current assets#51and total current liabilities as of May 31, 2022 and May 31, 2021 under "Full-Year Fiscal 2022- Return on Invested Capital" below. We believe ROIC is a meaningful measure of how effectively we are deploying our key assets and using capital to generate profits. Numerous methods exist for calculating ROIC. Accordingly, the method used by FedEx may differ from the methods used by other companies. We encourage you to understand the methods used by another company to calculate ROIC before comparing its ROIC to ours. Our adjusted dividend payout ratio for fiscal 2022 is calculated as cash dividends paid on our common stock in fiscal 2022 divided by fiscal 2021 adjusted consolidated net income. We calculate our adjusted dividend payout ratio, in part, using a non-GAAP financial measure that we believe excludes items that may not be indicative of, or are unrelated to, our core operating performance. We believe our adjusted dividend payout ratio is a meaningful measure of how effectively we have returned profits to holders of our common stock. Fiscal 2023 and 2025 Forecasts We have also provided forecasts for the following metrics for fiscal 2025: consolidated adjusted operating income and adjusted operating margin, adjusted net income, and adjusted EPS; adjusted FedEx Ground, FedEx Express, and FedEx Freight segment operating margins; adjusted dividend payout ratio; and ROIC. Additionally, we have provided an adjusted dividend payout ratio forecast for fiscal 2023. Other than our forecasted adjusted dividend payout ratio for fiscal 2023, we do not provide a reconciliation of these non-GAAP financial forecasts to the most directly comparable GAAP forecasts because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. For example, we are unable to predict the amount of the fiscal 2025 MTM retirement plans accounting adjustments, as they are significantly impacted by changes in interest rates and the financial markets. Additionally, we may incur costs during fiscal 2023, 2024, and 2025 related to business optimization initiatives as well as other costs that are unrelated to our core operating performance and/or extraordinary in nature. We are currently unable to forecast the amount and timing of these additional costs. These items are inherently uncertain and depend on various factors, many of which are beyond our control, and as such, any associated estimate and its impact on our GAAP financial measures could vary materially. Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our fiscal 2022 and 2021 non-GAAP financial measures and fiscal 2023 forecasted adjusted dividend payout ratio to the most directly comparable GAAP measures.#52Full-Year Fiscal 2022 Dollars in millions, except EPS GAAP measure MTM retirement plans accounting adjustments³ Business realignment costs4 FedEx Ground legal matter5 TNT Express integration expenses Non-GAAP measure $ Operating Income Margin 6,245 Income Taxes¹ Net Income² Diluted Earnings Per Share 6.7% $ 1,070 $ 3,826 $ 14.33 379 1,199 4.49 278 0.3% 64 214 0.80 210 0.2% 50 160 0.60 132 0.1% 29 103 0.39 $ 6,865 7.3% $ 1,592 $ 5,502 $ 20.61 Return on Invested Capital Dollars in millions Numerator Adjusted operating income (non-GAAP) Interest on average operating leases $ SA 6,865 463 Adjusted operating income with add-back for interest on average operating leases Adjusted current income taxes (non-GAAP)³ Lease-adjusted after-tax net operating income $ 7,328 (870) SA 6,458 Denominator Average adjusted net working capital 10 (non-GAAP) Average net property and equipment 3,714 36,922 Average operating lease right-of-use assets, net 15,998 Average goodwill 6,768 Average other assets, net of other liabilities 3,393 Average invested capital 66,795 Return on invested capital 9.7% Adjusted Dividend Payout Ratio Dollars in millions Cash dividends paid in fiscal 2022 Fiscal 2021 net income (GAAP) Dividend payout ratio (GAAP) 793 5,231 15% Cash dividends paid in fiscal 2022 793 Fiscal 2021 adjusted net income (non-GAAP) 4,885 Adjusted dividend payout ratio (non-GAAP) 16%#53Full-Year Fiscal 2021 Dollars in millions, except EPS GAAP measure MTM retirement plans accounting adjustments³ Operating Income Margin Income Net Diluted Earnings Taxes1 Income² Per Share11 $ 5,857 7.0% $ 1,443 $ 5,231 $ 19.45 (281) (895) (3.33) Loss on debt extinguishment 96 297 1.11 TNT Express integration expenses 210 0.3% 48 162 0.60 Business realignment costs5 116 0.1% 26 90 0.33 Non-GAAP measure $ 6,183 7.4% $ 1,332 $ 4,885 $ 18.17 Fiscal 2023 Adjusted Dividend Payout Ratio Forecast Dollars in millions Cash dividends expected to be paid in fiscal 2023 Fiscal 2022 net income (GAAP) Dividend payout ratio (GAAP) 1,175 3,826 31% Cash dividends expected to be paid in fiscal 2023 $ 1,175 Fiscal 2022 adjusted net income (non-GAAP) Adjusted dividend payout ratio (non-GAAP) 5,502 21% Notes: 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 - Reflects the year-end adjustment to the valuation of the company's defined benefit pension and other postretirement plans. For fiscal 2022, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with the termination of a TNT Express European pension plan and a curtailment charge related to the U.S. FedEx Freight pension plan. For fiscal 2021, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with amending a TNT Express European pension plan to harmonize retirement benefits. - 4 – Business realignment costs were recognized at FedEx Express. 5 - These charges were recognized at FedEx Corporation. 6 - These expenses were recognized at FedEx Corporation and FedEx Express.#547 – Represents the hypothetical interest expense implied within rentals expenses the company would incur if property under operating leases were owned or accounted for as finance leases. Estimated using the weighted-average discount rate for operating leases, which was 2.85% for 2022, applied to the total of the average current and long-term operating lease liabilities as of May 31, 2022 and May 31, 2021, respectively. See "Fiscal 2022 and 2021 Financial Measures— Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 8 - Calculated as 2022 adjusted operating income with the add-back for interest on average operating leases multiplied by the 2022 adjusted current income tax rate of 11.9%. Our current income tax rate for 2022 of 15.3% is calculated by dividing our current tax provision by income before income taxes, and has been adjusted as follows: Current income tax rate (GAAP) MTM retirement plans accounting adjustments Business realignment costs FedEx Ground legal matter TNT Express integration expenses Adjusted current income tax rate (non-GAAP) 15.3% (3.7)% 0.5% (0.4)% 0.2% 11.9% See "Fiscal 2022 and 2021 Financial Measures-Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 9- Other than average adjusted net working capital, amounts are averages of the applicable line items included in FedEx's condensed consolidated balance sheets for the fiscal years ended May 31, 2022 and May 31, 2021, respectively. 10 - Calculated as our average total current assets for the years ended May 31, 2022 and May 31, 2021, adjusted as follows, minus our average total current liabilities for the years ended May 31, 2022 and May 31, 2021, adjusted as follows: Dollars in millions Average total current assets (GAAP) 20,473 Average cash and cash equivalents in excess of those required to support daily business operations and those held in restricted offshore accounts Adjusted average total current assets (non-GAAP) (5,232) $ 15,241 Average total current liabilities (GAAP) 13,967 Average current portion of long-term debt (114) Average current portion of operating lease liabilities (2,326) Adjusted average total current liabilities (non-GAAP) $ 11,527 Average adjusted net working capital (non-GAAP) $ 3,714 See "Fiscal 2022 and 2021 Financial Measures-Return on Invested Capital and Adjusted Dividend Payout Ratio" above for additional information. 11 Does not sum to total due to rounding.