Investor Presentaiton
and 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.View entire presentation