FedEx Express

Managerial Economics PresentationBy: Jyoti Singh & Nakul Bhardwaj

13th September 2015

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FedEx Corporation - Portfolio

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Introduction It’s not every day that a new industry takes modern form, but that’s what happened when

FedEx President, Chairman and CEO Frederick Smith founded Federal Express.

Federal Express officially began operations on April 17, 1973.

The company’s “hub and spoke” system enabled efficient overnight express service, and FedEx was the first to pioneer tracking and tracing capability so customers would know where their shipments were.

Over more than four decades, FedEx has built a portfolio of innovative solutions that connect customers to more than 220 countries and territories. That’s 99 percent of the world’s global gross domestic product. Imagine the possibilities.

FedEx Express operates the world's largest cargo air fleet with over 700 aircraft.

FedEx Corporation is a $45 billion global transportation, business services, and logistics company.

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Milestones 1978 - Federal Express becomes publicly held and quoted on the New York Stock

Exchange.

1983 - Federal Express reaches US$1 billion in revenue – the first U.S. business to achieve this status without merger or acquisition.

2003 - FedEx is successfully recertified for the revised ISO 9001:2000 international quality management standard for its entire worldwide operations.

2008 - FedEx Corporation ranks ninth in the business Superbrands list.

2011 - FedEx Corporation acquires the logistics, distribution and express businesses of AFL and its affiliate Unifreight India.

2015 - FedEx Corporation acquires TNT Express.

5HUB & Spoke System

We Connect the World

FedEx offers the best of both worlds — global reach backed by local expertise. Our worldwide network is served by five regions outside the U.S

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Customer Mix11%

15%

11%

11%7%

25%

14%

6%

AIRCRAFT PARTSAUTO PARTSELECTRONIC GOODSENGINEERING GOODSMEDICAL EQUIPMENTPHARMACEUTICALSSPARE PARTSOTHERS

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Targeted Growth and Yield Management

At FedEx, we are focusing on delivering the right solutions for the right customers at the right price.

Retain the majority of our annual rate increases.

Utilize the Revenue Management Committee to optimize yield, market share and profitability growth.

Remain willing to walk away from less-profitable accounts.

Expand our small to medium-sized customer base.

Pricing includes Band Pricing, RevGen Pricing, GTI Pricing, High Season Pricing & Low Season Pricing.

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Mission & Goals FedEx Corporation will produce superior financial returns for its shareowners by providing

high value-added logistics, transportation and related business services through focused operating companies.

Customer requirements will be met in the highest quality manner appropriate to each market segment served.

FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations.

Corporate activities are being conducted to the highest ethical and professional standards.

FedEx will continue to implement the Earth Smart program.

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Investor News

FedEx Corporation reported adjusted earnings of $2.66 per diluted share for the fourth quarter ended May 31, compared to adjusted earnings of $2.54 per diluted share a year ago.

The Board of Directors of FedEx Corporation declared a quarterly cash dividend of 25% per share on FedEx Corporation common stock.

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Economic Update

Global GDP growth is expected to be 2.5% in 2015 and 3.0% in 2016. The U.S., Europe and other developed markets will drive global growth. Risks to the outlook include geopolitical tensions and financial conditions in several emerging markets.

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New York Stock Exchange

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Annual Reports

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Result 2015

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Market Share

30%

21%19%

12%

18%

FedEx ExpressDHLUPSTNTOTHERS

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Market Share – India

18%

24%

18%

15%

9%

5%

11%

FedEx ExpressDHL & BlueDartGATISpeed PostUPSTNTOthers

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Awards 2001 - FedEx was awarded America’s Most Admired Company.

2005 - FedEx has been honored as one of the Fortune “100 Best Companies to Work" list in 10 of the past 11 years and was named to the Fortune “100 Best Companies to Work” Hall of Fame.

2012 - FedEx Express was ranked the 24th Best Multinational Workplace.

2012 - FedEx Express was named Super Eco-Airline of the Year by Air Transport World.

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Bibliography Website: www.fedex.com/in

Intranet: www.home.fedex.com

Igor Collaco, All India Sales Manager - Mumbai

Stephanie Stewart, Marketing Manager - Memphis

Tasha Newson, Operations Manager - Phoenix

Heather Davis, Sales Manager - Houston