© 2005 FedEx. All rights reserved.

Transportation is Trade

Jim Peters

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FedEx Trivia

• The company’s logo has a right-pointing arrow located in the negative space between the E and the x in FedEx. While the arrow becomes quite obvious when pointed out, most people do not notice it. The arrow has been sighted as a mild form of subliminal advertising, the arrow symbolizing forward movement and thinking.

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FedEx Trivia

• The movie Cast Away, based on the story of Robinson Crusoe, is about a FedEx employee who survives a plane crash and subsequently becomes stranded on an island. Segments of the movie were shot on location at FedEx hubs in Memphis and Los Angeles. FedEx founder, chairman, and CEO Fred Smith appears in a cameo in the film.

• The company’s planes are named after children of employees.

• Jeopardy! super champion Ken Jennings incorrectly asked “What is FedEx?” to the final Jeopardy question that ended his 74-game winning streak.

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Today’s Topics

•Corporate Overview

•Global Quick Facts

•FedEx Express Overview

•FedEx Alaska

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Corporate Overview

• Founded as Federal Express in 1971 by U.S. Marine Fred Smith in Little Rock, Arkansas, the company later moved to Memphis, Tennessee and officially began operations on April 17, 1973.

• The original fleet consisted of 14 Dassault Falcon 20’s which connected 25 US cities.

• Today FedEx operates over 650 aircraft to 375 domestic and international airports.

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Corporate Overview

FedEx is now organized into operating units under the FedExCorporation umbrella. We operate independently, compete collectively and manage collaboratively. Each Op Co is distinguished by its unique color.

Corporate is grayExpress is orangeGround is greenFreight is redOffice is blueTrade networks is yellow Custom Critical is blueServices is platinum

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Corporate Statistics

• FY11 Revenues reached nearly $40 billion

• Average Daily Volume of more than 7.5 million shipments for express, ground, freight and expedited delivery services.

• Service Area of more than 220 countries and territories, including every address in the United States.

• A workforce of more than 290,000 team members worldwide.

• fedex.com - Over 20 million unique visitors monthly.

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Global FedEx Quick Facts

• FedEx ranks in the Top 10 Business Brands in China• Asia-Pacific Hub in Guangzhou, China opened in

February 2009.• Operating new China Domestic hub since May 2007 in

Hangzhou with next-day time definite delivery from just over 19 cities.

• FedEx introduced domestic service for Mexico in October 2008.

• Agreed to Purchase AFL WiZ Express in November 2010, significantly expanding our intra-India delivery network.

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FedEx Express Overview

• As the original overnight courier service, FedEx Express provides guaranteed time and day definite delivery of goods, from envelopes to heavyweight freight.

• Rapid growth followed air cargo deregulation in 1977, which allowed FedEx to use larger aircraft.

• Several international acquisitions ensued with overseas operations beginning in 1984 with service to Europe and Asia. Acquisition of Flying Tigers in 1989 gave us the International landing rights we have today.

• Today FedEx is the world’s largest cargo airline with 26.5 million pounds of daily lift capacity .

• Main sorting center and world headquarters is in Memphis, Tennessee.

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FedEx Express Statistics

Air Fleet– 11 Boeing 777Fs– 60 Boeing MD11s – 6 Boeing DC10-30s – 1 Boeing DC 10-10– 12 Boeing MD10-30s – 57 Boeing MD10-10s – 71 Airbus A300-600s – 56 Airbus A310-200/300s – 24 Boeing 757s– 79 Boeing 727-200s – 13 ATR 72s – 26 ATR 42s – 10 Cessna 208As – 242 Cessna 208Bs

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Boeing 777 Freighter = Game Changer!

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Boeing 777 Freighter = Game Changer!

• 6,500 Nautical Mile Range – increase of 2,200 nm over MD-11, and 800nm-900nm over 747.

• 235,000lb maximum payload. • Non-Stop Service from Asia to

Memphis with no reduction in payload for increased fuel load.

• Pickup Times extended by two hours in Asia markets.

• Significantly increased fuel efficiency, -12,000 gallons fuel burn than 747 on same routing.

• 14 aircraft currently in service, with an additional 31 aircraft on order.

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FedEx Express Statistics

• FY11 revenue $24.6 billion.• Approximately 3.3 million packages and 10 million pounds

of freight daily.• More than 140,000 employees worldwide.• 1,083 stations (692 in the U.S.; 391 outside of U.S.)• Delivery Fleet of more than 43,000 motorized vehicles• 10 air express hubs

– Asia Pacific: Guangzhou, China– Canada: Toronto, Ontario – Europe/Middle East/Africa: Paris, France – Latin America-Caribbean: Miami, FL – United States: Anchorage, AK, Fort Worth, TX, Indianapolis, IN,

Memphis, TN (SuperHUB), Newark, NJ, Oakland, CA

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AnchorageThe Key to Connectivity

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World Connectivity

MEM

YWGYYCYVRYEG

IND EWR

YMX

YYZ

SYD

ANC

YOW

MTY

GDL

EZESCL

TLCSJU

VCP

MIA

OAK

PTYVLN

BQN

BOG

LAX

HNL

ICN

KIX

TPEHKG

SZX

CAN

PVG

DEL

DXB

ALA

NRT

PEK

BOM

FRACGNSTN

CDGSEA

AFW

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Overview- Anchorage HUB

•Major Gateway to Asia Pacific within the FedEx Express Global Network

•1450 dedicated employees involved in operations, clearance and support functions work at the Anchorage HUB

•80 % of Cargo between Asia Pacific and U.S moves through Anchorage HUB

•Anchorage HUB is the largest customs clearance point within FedEx Express Network for Asia Pacific to US cargo

Box Sort Capacity (Flow/Hr) 15,500

Doc Sort Capacity (Flow/Hr) 9,000

Average Daily Volume 65,500

Average Daily Payload (LBS) 1,657,673

Average Daily A/C Activity 37

Average Truck Activity 6

Operational Employee Staffing

636

AOD Staffing(Pilots and Mechanics)

479

USPS Avg. Daily Payload (LBS)

35,138

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LAX

SFO

ANC

PEK

TPE

PVGNRT

ICN

KIXMEM

SZXHKG

EWRINDOAK

AFWCAN

SEA

ANC Network

FAI

SIT

KTN

ENA

HOM

ADQ

JNU

Trunk Flights

Feeder Flights

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Overview – Alaska Domestic Ground Operations (AGFS)

• Domestic Operations connect Fairbanks, Kodiak, Kenai, Homer, Sitka, Ketchikan, and Juneau via our feeder network.

• Truck operations to Eagle River, Wasilla, Seward, and Valdez.

• 150 Employees and Vendor Network provide world class pick-up and delivery service throughout the state of Alaska

• Approximately 11,000 packages are handled through the domestic network daily

• FedEx offers Alaska customers the broadest range of premium service types including First Overnight, Priority Delivery by 10:30 to key business centers, and the only Intra-state Overnight delivery to Juneau.

Daily Avg Delivery Volume 10,829Operational Employee Staffing 150

Total Routes Dispatched 148Alaska Zip Codes Served All

Daily Feeder Flights 14Heavy Weight Zip Codes Served 62

Total Pickup and Delivery Vehicles

130

Annual Miles Driven 1.8 million

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“FISH ON…”• The Airplane!

• The Menu!

• The Table!

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FEDEX and Alaska Seafood…

The perfect marriage of Premium Seafood with a

Premium Overnight Global Transportation System.

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Domestic and International Fish Movement

• More than 6.7 Million Pounds transported in FY 2011

• Annual Revenues over $7.3 million

• Most major seafood shippers in Alaska choose FedEx.

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What is the FedEx advantage?

• We work WITH the customer, and FOR the customer– Volume forecasting and line haul planning– Weather forecasting– Consolidation of perishables positioned in “last on/first

off” containers on aircraft.– Pre-Alert Notification sent to down line Hubs– Cold Storage contingency available at Hub facilities– Customer AND FedEx Operations tracking of packages– Over 99% service reliability (Highest in the industry)

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Daily Weather Briefing by FedEx Meteorologists

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Daily Weather Briefing by FedEx Meteorologists

• Planning & coordination between pilots, flight planners, local aircraft maintenance and operations allows FedEx Express to launch on-time no matter what the conditions are.

• Safety is our first priority!

• Our goal is to launch an on-time fleet, putting the customer’s product in the hands of our couriers, who ultimately close the transaction as it relates to moving the world’s economy.

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Thank You!

…moving the world’s economy!