Investor Presentaiton

APPENDIX 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

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