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FedEx CorporationFirst Quarter FY17 Earnings Review

September 20, 2016

This presentation supplements, and should be read together with, our earnings release and statistical book for the quarter ended August 31, 2016

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Forward-Looking StatementsCertain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. 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 successfully integrate the business and operations of FedEx Express and TNT Express in the expected time frame, a significant data breach or other disruption to our technology infrastructure, changes in fuel prices or currency exchange rates, legal challenges or changes related to FedEx Ground’s owner-operators and the drivers providing services on their behalf, new U.S. domestic or international government regulation, our ability to effectively operate, integrate and leverage acquired businesses, disruptions or modifications in service by, or changes in the business of, the U.S. Postal Service, the impact from any terrorist activities or international conflicts, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with 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.

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Frederick W. Smith, Chairman, President and CEO

Alan B. Graf, Jr., Executive Vice President and CFO

T. Michael Glenn, President and CEO of FedEx Services

Christine P. Richards, Executive Vice President, General Counsel & Secretary

Robert B. Carter, Executive Vice President, FedEx Information Services and CIO

David J. Bronczek, President and CEO of FedEx Express

Henry J. Maier, President and CEO of FedEx Ground

Michael L. Ducker, President and CEO of FedEx Freight

FedEx Executives On the Call

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Frederick W. Smith

Chairman, President

and CEO

Overview

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Compete Collectively, Operate Independently, Manage Collaboratively

FY17 revenue and earnings to increase driven by volume growth and improved base yields at FedEx Express, FedEx Ground, and FedEx Freight

TNT Express integration proceeding smoothly

Purple Promise, “I will make every FedEx experience outstanding”

We are committed to improving FedEx Corporation’s margins, earnings per share, cash flows and returns

Strong Financial and Operating Results

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T. Michael Glenn

President and CEO

FedEx Services

Marketing Review and Outlook

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Expectation for Continued Moderate Global Growth

GDP Forecast*U.S.Global

CY2016

1.6%2.2%

CY2017

2.3%2.6%

U.S. Industrial Production* (0.7%) 2.2%

* FedEx Forecast September 2016

Corporation Economic Outlook

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Growing U.S. Domestic Package Volume,Revenue and Yield (Revenue Per Package)

Q1FY17 Q1FY16 Change

U.S. Domestic Package Revenue* $2.98B $2.90B 3%

U.S. Domestic Package Average Daily Volume 2.65M 2.62M 1%

U.S. Domestic Package Yield* $17.28 $17.03 1%

* Includes fuel surcharge

Express U.S. Domestic

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Continued Growing Demand for Economy Service

Q1FY17 Q1FY16 Change

Int’l Export Package Revenue* $2.02B $2.04B (1%)

Int’l Priority Package ADV 385K 389K (1%)

Int’l Economy Package ADV 178K 176K 1%

Int’l Export Package Yield* $55.15 $55.47 (1%)

* Includes fuel surcharge and exchange rate impact

Express International

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Strong Demand For Residential and Commercial Service

Q1FY17 Q1FY16 Change

Segment Revenue* $4.29B $3.83B 12%

FedEx Ground Average Daily Package Volume 7.39M 6.72M 10%

FedEx Ground Package Yield* $8.09 $7.91 2%

* Includes fuel surcharge

Ground Growth

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Increasing Average Daily LTL Shipments and Segment Revenue

Q1FY17 Q1FY16 Change

Segment Revenue* $1.66B $1.60B 4%

Average Daily LTL Shipments 105K 97K 8%

Weight Per LTL Shipment (lbs) 1,152 1,189 (3%)

LTL Revenue Per Shipment* $229.20 $237.81 (4%)

* Includes fuel surcharge

Freight Growth

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Business Trends:E-Commerce Growth Expected to Deliver Another Record Peak Season

E-commerce market growing at about 15%*, FedEx forecasting record peak volume

Volume projected to spread across peak period with multiple peak days

Increased investments in people, facilities, aircraft and technology will support outstanding service during peak

Close collaboration with large e-tail and retail customers that drive holiday demand

* Source: comScore

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Alan B. Graf, Jr.

Executive Vice President

and CFO

Financial Review and Outlook

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First Quarter FY2017 Results

Q1FY17 Q1FY17 Q1FY16

As Reported (GAAP)

Adjusted(non-GAAP)*

As Reported(GAAP)

Earnings Per Share $2.65 $2.90 $2.42

Operating Income $1.26B $1.36B $1.14B

Operating Margin 8.6% 9.3% 9.3%

* See the Non-GAAP Appendix for a reconciliation of presented non-GAAP measures to the most directly comparable GAAP measures

Corporation

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Double-Digit Revenue and Operating Income Growth

Q1FY17 Q1FY16 Change

Revenue $4.29B $3.83B 12%

Operating Income $610M $537M 14%

Operating Margin 14.2% 14.0% 0.2 pts

Ground Segment

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Revenue Up 4%

Q1FY17 Q1FY16 Change

Revenue $1.66B $1.60B 4%

Operating Income $135M $132M 2%

Operating Margin 8.1% 8.2% (0.1 pts)

Freight Segment

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Operating Income and Margins Improved

Q1FY17 Q1FY17 Q1FY16

As Reported (GAAP)

Adjusted(non-GAAP)*

As Reported(GAAP)

Revenue $6.66B $6.66B $6.59B

Operating Income $624M $646M $545M

YOY Change 14% 19%

Operating Margin 9.4% 9.7% 8.3%

* See the Non-GAAP Appendix for a reconciliation of presented non-GAAP measures to the most directly comparable GAAP measures

Express Segment

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New Financial Reporting Structure

+

FedEx Express Group =

SegmentSegment

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FedEx Express Group FedEx Corporation

FY16 Q1FY17 FY16 Q1FY17

Geography as % of Revenue

FY16 only includes TNT revenue for May 25-31, 2016

56%44%

U.S. International

44%56%

U.S. International

76%

24%

U.S. International

$26.5B $8.5B $50.4B $14.7B

67%

33%

U.S. International

FY16 only includes TNT revenue for May 25-31, 2016

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Global Presence

● More than 200 country and territory destinations served

● Approximately 56,000 team members with 900+ hubs, depots and office facilities

● Approximately 1 million daily packages

● European road network connecting more than 40 countries through 19 road hubs and over 540 depots

Overview of

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Strategic Rationale

● Combined companies create an even stronger global competitorwith the leading global express network in the transportation and logistics industry

● Customer access is considerably enhanced from the combined strength of TNT Express’s strong European road network for both parcel and freight and FedEx Express’s global strength

● Combined companies offer comprehensive transportation solutions, such as express, global freight forwarding, contract logistics and surface transportation capabilities

● Excellent cultural fit, both companies focused on service and people

The Acquisition of TNT

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Includes over 200 countries

● Integration process expected to take four years to complete

● Leverages our well-established integration methodology, process and tools

● Focuses on operational efficiencies, service enhancements, and optimization of back-office functions to strengthen our competitive position

● Supported by 20 integration teams including operations, IT, HR, Finance, Legal, Sales, Marketing and Customer Service

● Incorporates models to address markets where both TNT Express and FedEx Express are direct serve, one is direct serve and the other is not, and where both use third-party delivery partners

Multi-Year Integration Process

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First Full Quarter Results

Q1FY17Operating

TNT Express SegmentIncome/(Loss) Margin

Non-GAAP Measure $34M 1.9%

TNT Express Integration and Outlook Restructuring Program Costs ($20M) (1.1%)

TNT Express Intangible Asset Amortization* ($28M) (1.6%)

GAAP Measure ($14M) (0.8%)

* Primarily customer related

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Plan to Realize the Synergies with

Improved Efficiency of Staff Functions and

Processes (SG&A)

Optimized Pickup and Delivery Operations

Grow Revenue With Best-In-Class

Service Portfolio

IntegratedGlobal Express

Network

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FY17 Adjusted EPS*Excludes mark-to-market pension adjustment, TNT Express integration and Outlook restructuring program costs and TNT Express intangible asset amortization

$11.85 to $12.35

Excluding:TNT Express integration and Outlook restructuring program costs ($275M)

TNT Express intangible asset amortization ($115M)

FY17 Adjusted EPS*Excludes mark-to-market pension adjustment

$10.85 to $11.35

* See the Non-GAAP Appendix for a reconciliation of presented non-GAAP measures to the most directly comparable GAAP measures

Corp. Financial Guidance

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Achieve 10%+ operating margin

Increase EPS 10%-15% per year

Grow profitable revenue

Improve cash flows

Increase ROIC

Increase returns to shareowners

FedEx Corp. Long-Term Financial Goals

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Strategic Questions?

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Non-GAAP Appendix

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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”). In an effort to provide additional, useful information regarding the company’s financial results and other financial information, the company also discusses in its earnings press release and earnings presentation certain non-GAAP measures. The rationale for management’s use of this non-GAAP information is included in the earnings release for the quarter ended August 31, 2016. A reconciliation of any non-GAAP measure used in this earnings presentation to the most directly comparable GAAP measure is included in this Non-GAAP Appendix.

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Op Income

Op Margin

IncomeTaxes1

NetIncome2

Diluted EPS

Non-GAAP measure $1,360 9.3% $457 $780 $2.90

TNT Express integration and Outlook restructuring program costs (68) (0.5%) (23) (45) (0.17)

TNT Express intangible asset amortization

(28) (0.2%) (7) (21) (0.08)

GAAP measure $1,264 8.6% $427 $715 $2.65

Q1 FY17 Reconciliation for FedEx Corp.Dollars in millions, except EPS

1 Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction 2 Does not sum to total due to rounding

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Operating

Income Margin

Non-GAAP measure $646 9.7%

TNT Express integration costs (22) (0.3%)

GAAP measure $624 9.4%

Q1 FY17 Reconciliation for FedEx Express SegmentDollars in millions

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FY17 Reconciliation for FedEx Corp. Earnings GuidanceDollars in millions, except EPS

Adjustments Diluted EPS

Earnings per diluted share with adjustments $11.85 to $12.35

TNT Express integration and Outlook restructuring program costs ($275)

Income tax effect1 92

Net of tax effect ($183) ($0.68)

TNT Express intangible asset amortization ($115)

Income tax effect1 29

Net of tax effect ($ 86) ($0.32)

Earnings per diluted share without adjustments2 $10.85 to $11.35

1 Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction 2 This is a non-GAAP measure because the year-end mark-to-market pension accounting adjustments,

which are impracticable to calculate at this time, are excluded

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