FedEx UPS Presentation

The Battle for Value, 2004: FedEx Corp. vs. The United Parcel Service, Inc.Presented byGerald OnukwaghuPrashant RajopadhyeMiguel Edwards

The Battle for Value, 2005: FedEx vs. UPS

• FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand.– FedEx Mission Statement Excerpt


• We serve the evolving distribution, logistics, and commerce needs of our customer worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners.– UPS Mission Statement


• FedEx History– Business model conceived by Fred Smith in an

undergraduate term paper.– Invests $4 million of his own capital and raises and

addition $91 million.– Launches in 1971– By 2003

• 50,000 Delivery Trucks• 625 Cargo Planes• 217,000 Employees• Handles 2 billion packages• $22.5 Billion with 37% margins


• UPS History– Started in 1907 by 19 year-old Jim Casey then called American Messenger Company.– Became Unite Parcel Service of America in 1929 and began shipping packages on commercial airliners. – By 2003

• 88,000 Ground Trucks• 583 Planes• 360,000 Employees• $2.9 Billion in profits on $33.4 Billion

FedEx UPS

Ground Vehicles 50,000 88,000

Aircraft 625 583

Employees 216,500 360,000

Packages Shipped Daily 5.4 million 13 million

Assets $15.4 billion $28.9 billion

Revenues $22.5 billion $33.4 billion

Net Income $830 million $2.9 billion


Head-to-Head

$0.00 $10.00 $20.00 $30.00 $40.00

Assets

Revenues

Net IncomeUPS

FedEx


FedEx - UPS 2003 Financials


• The Competition– Price competition– Operational Reengineering– Information Technology– Service Expansion– Logistic Services

The Battle for Value, 2005: FedEx vs. UPS• The European Market

– In 1992, FedEx sold operations to DHL after sustaining an estimated $1 Billion in losses since 1984.– FedEx continues to deliver throughout Europe, however, leveraging local partners.– UPS enters the European market place in 1988. – Acquires 10 local providers.– Announces $1 Billion of investments in that market– Targets to grow European business to 1/3 of total operations.

The Battle for Value, 2005: FedEx vs. UPS• The Breaking Into China

– Economist suggest China will be the worlds largest economy by 2039.– Chinese air cargo is growing at a steady rate of 30%.– Import/Export shipping market is estimated at $1 Billion. – Intra-China Shipping estimated at $800 Million.– In 2004, the US and China strike an new transportation accord.

• Five times the number of in/outbound flights• Permitted to establish hubs• Access to all airports

The Battle for Value, 2005: FedEx vs. UPS• The Breaking Into China (cont.)

– FedEx and UPS already serving China– FedEx maintained a larger presence in China

• Direct flights to Beijing, Shenzhen, and Shanghai• 11 weekly flights, twice as many as UPS• Served 220 Chinese cities.• FedEx volumes grew by more that 50% between 2003 and 2004

– UPS was active in China since 1988 • Direct flights to Beijing and Shanghai• 6 weekly 747 flights• Served 200 Chinese cities• UPS reported 60% growth in shipments since 2001.

Timeline of Competitive Developments

1982 2003

1982Offers 10:30 AM delivery

1982Establishes next-day air service

1984Acquires Gelco International,

launches Asia-Pacific operations

1986handheld barcode scanner

1985European hub in Brussels

1987Warehouse services to IBM

1988UPS's first air fleet

1989Acquires Tiger International

1990Malcolm Balbridge Award

1990Offers 10:30 AM guarantee

for next-day air

1991Saturday delivery,

Electronic sign. tracking

19922-day delivery

1992Expands delivery to 200 countries

1994Website for package tracking

1994Website for

package tracking

1995Guaranteed 8 A.M. overnight delivery

1995Acquires air-routes serving China,

Establishes Latin America Div.

1999UPS IPO

1999Creates new hub at CDG Airport in Paris

2000Acquires all-cargo air service

in Latin America

2001Acquires Mail Boxes Etc.,

begins direct flights to China

1985Intercontinental air service

between US and Europe

2000B2C home-delivery service

2001Carries USPS packages,

Acquires American Freightway Corp.

2002Home delivery to

cover 100% of U.S.

2002Guaranteed

next-day delivery

2003Acquires Kinko's,

establishes Chinese headquarters

2003Contracts with

Yangtze River Express, Reduces

ground-delivery time

The Battle for Value, 2005: FedEx vs. UPSEnabling Factors

FedEx UPS

Technology Innovations•Customer ordering•Package Tracking•Process Monitoring

Leader in logistics & supply chain management•Customer logistical management

Operations – Malcolm Balbridge National Quality Award for service

Efficiency,

Low-cost provider

Deregulation –In airline industry–In trucking industry

Innovative, entrepreneurial, operational leader

Hub & spoke distribution pattern

Cost reduction through economies of scale, IT, Business Process Re-engineering

Ditto

The Battle for Value, 2005: FedEx vs. UPSInhibiting Factors

FedEx UPS

Domestic express market reached maturity

Ditto

Union Problems, large wage increases

Equity Prices and Returns for FedEx and UPSUPS 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Stock Price Dec 31 $9.25 $10.38 $11.75 $13.13 $14.63 $15.38 $20.00 $69.00 $58.75 $54.50 $63.08 $74.55Dividends per share $0.25 $0.25 $0.28 $0.32 $0.34 $0.35 $0.22 $0.58 $0.68 $0.76 $0.76 $0.92EPS, basic, incl. extra items $0.44 $0.70 $0.81 $0.92 $1.00 $0.82 $1.59 $0.79 $2.54 $2.13 $2.84 $2.57 P/E multiple 21.26 14.82 14.42 14.34 14.55 18.64 12.58 87.34 23.13 25.59 22.21 29.01 Capital appreciation 12.16% 13.25% 11.70% 11.43% 5.13% 30.08% 245.00% -14.86% -7.23% 15.74% 18.18% UPS Cumul. Compound annual return 12.16% 27.03% 41.89% 58.11% 66.22% 116.22% 645.95% 535.14% 489.19% 581.95% 705.95%

FedEx Corp. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Stock Price Dec 31 $10.19 $12.25 $19.13 $14.97 $19.16 $26.19 $32.06 $54.81 $35.50 $40.00 $53.95 $63.98Dividends per share $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.20EPS, basic, incl. extra items -$0.53 $0.25 $0.91 $0.91 $1.35 $1.56 $1.72 $2.13 $2.36 $2.02 $2.38 $2.79 P/E multiple 50.00 20.96 11.36 14.22 16.79 18.70 25.73 15.04 19.80 22.67 22.93 Capital appreciation 20.25% 56.12% -21.73% 27.97% 36.70% 22.43% 70.96% -35.23% 12.68% 34.88% 18.59% FedEx Cumul. Compound annual return 20.25% 87.73% 46.93% 88.04% 157.06% 214.72% 438.04% 248.47% 292.64% 429.57% 528.02%

S&P 500 Index 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Index level 435.71 466.45 459.27 615.93 740.74 970.43 1229.23 1469.25 1320.28 1148.08 879.82 1111.92 Annual return 7.06% -1.54% 34.11% 20.26% 31.01% 26.67% 19.53% -10.14% -13.04% -23.37% 26.38% S&P Cumul. Compound annual return 7.06% 5.41% 41.36% 70.01% 122.72% 182.12% 237.21% 203.02% 163.50% 101.93% 155.20%

Cumul. Market-Adjusted Returns 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003UPS 5.11% 21.62% 0.53% -11.90% -56.51% -65.90% 408.74% 332.12% 325.69% 480.02% 550.75%FedEx 13.19% 82.32% 5.57% 18.03% 34.33% 32.60% 200.83% 45.45% 129.14% 327.64% 372.83%

Cumulative Compound Performance against S & P 500 index

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

700.00%

800.00%

1990 1992 1994 1996 1998 2000 2002 2004

Year

% R

etu

rn

UPS Cumul. Compound annual return

FedEx Cumul. Compound annual return

S&P Cumul. Compound annual return

Economic Profit Analysis for FedExFedex Corp 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Return on Net Assets (RONA) Net operating profit after tax ($mm) $187 $176 $363 $405 $419 $499 $727 $726 $866 $750 $881 $1,418 Beginning capital ($mm) $4,078 $4,344 $4,456 $4,655 $5,081 $5,663 $6,882 $7,863 $8,636 $10,090 $10,870 $12,050RONA (NOPAT/Beginning capital) 4.59% 4.05% 8.15% 8.70% 8.25% 8.81% 10.56% 9.23% 10.03% 7.43% 8.10% 11.77%

Weighted average cost of capital Long-term debt ($mm) $1,798 $1,882 $1,632 $1,325 $1,325 $1,398 $1,385 $1,360 $1,776 $1,900 $1,800 $1,709 Shares outstanding (mm) 216 219 224 225 228 230 295 298 284 297 298 299 Share Price ($) $10 $12 $19 $15 $19 $26 $32 $55 $36 $40 $54 $64Market value of equity ($mm) $2,205 $2,682 $4,274 $3,363 $4,359 $6,018 $9,453 $16,333 $10,098 $11,893 $16,087 $19,104Tax rate (%) 23% 46% 46% 43% 43% 43% 45% 41% 39% 37% 38% 38%Long-term U.S. gov't bonds (%) 7.97% 6.80% 7.53% 7.01% 7.07% 6.89% 5.94% 5.79% 6.19% 5.65% 5.55% 4.76%Senior Baa-rated debt (%) 9.20% 8.11% 8.71% 8.27% 8.46% 8.16% 7.33% 7.69% 8.87% 7.94% 7.96% 6.58%Risk Premium (%) 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60%Beta 1.10 1.15 1.20 1.20 1.40 1.35 1.30 1.15 1.20 1.20 1.20 1.10Cost of equity (%) 14.13% 13.24% 14.25% 13.73% 14.91% 14.45% 13.22% 12.23% 12.91% 12.37% 12.27% 10.92%WACC 10.97% 9.59% 11.61% 11.18% 12.56% 12.60% 12.05% 11.64% 11.79% 11.36% 11.53% 10.36%

Economic Value Added (EVA) RONA (NOPAT/BEGINNING CAPITAL) 4.59% 4.05% 8.15% 8.70% 8.25% 8.81% 10.56% 9.23% 10.03% 7.43% 8.10% 11.77% WACC 10.97% 9.59% 11.61% 11.18% 12.56% 12.60% 12.05% 11.64% 11.79% 11.36% 11.53% 10.36% Spread -6.39% -5.67% -3.46% -2.48% -4.30% -3.79% -1.48% -2.41% -1.75% -3.92% -3.43% 1.41% X beginning capital ($mm) $4,078 $4,344 $4,456 $4,655 $5,081 $5,663 $6,882 $7,863 $8,636 $10,090 $10,870 $12,050 EVA (annual) ($261) ($246) ($154) ($115) ($218) ($215) ($102) ($189) ($151) ($396) ($373) $170 EVA (cumulative) ($261) ($507) ($661) ($777) ($995) ($1,210) ($1,311) ($1,501) ($1,652) ($2,048) ($2,420) ($2,251)

Market Value Added (MVA) Market value of equity ($mm) $2,205 $2,682 $4,274 $3,363 $4,359 $6,018 $9,453 $16,333 $10,098 $11,893 $16,087 $19,104 Long-term debt ($mm) 1,798 1,882 1,632 1,325 1,325 1,398 1,385 1,360 1,776 1,900 1,800 1,709 Capital (market value) ($mm) 4,003 4,564 5,906 4,688 5,684 7,416 10,838 17,693 11,874 13,793 17,887 20,813

Book value of equity ($mm) $1,580 $1,671 $1,925 $2,246 $2,576 $2,963 $3,961 $4,664 $4,785 $5,900 $6,545 $7,288 Long-term debt ($mm) 1,798 1,882 1,632 1,325 1,325 1,398 1,385 1,360 1,776 1,900 1,800 1,709 Capital (market value) ($mm) 3,378 3,553 3,557 3,571 3,901 4,361 5,346 6,024 6,561 7,800 8,345 8,997 MVA (market value - book value) $625 $1,011 $2,349 $1,117 $1,783 $3,055 $5,492 $11,669 $5,313 $5,993 $9,542 $11,816

Economic Profit Analysis for UPSUPS 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Return on Net Assets (RONA) Net operating profit after tax ($mm) $914 $888 $944 $1,448 $1,545 $1,379 $1,909 $3,215 $2,955 $2,846 $2,589 $3,309Beginning capital ($mm) $6,932 $7,195 $8,280 $9,679 $11,796 $12,514 $13,350 $18,845 $17,161 $20,007 $20,802 $23,391RONA (NOPAT/Beginning capital) 13.19% 12.34% 11.40% 14.96% 13.10% 11.02% 14.30% 17.06% 17.22% 14.23% 12.45% 14.15%

Weighted average cost of capital Long-term debt ($mm) $862 $852 $1,127 $1,729 $2,573 $2,583 $2,191 $1,912 $2,981 $4,648 $3,945 $3,149 Shares outstanding (mm) 1,190 1,160 1,160 1,140 1,140 1,124 1,095 1,211 1,135 1,121 1,123 1,129 Share Price ($) $9 $10 $12 $13 $15 $15 $20 $69 $59 $55 $63 $75Market value of equity ($mm) $11,008 $12,035 $13,630 $14,963 $16,673 $17,282 $21,896 $83,538 $66,663 $61,068 $70,839 $84,167Tax rate (%) 40% 43% 40% 39% 40% 41% 40% 58% 39% 38% 35% 34%Long-term U.S. gov't bonds (%) 7.97% 6.80% 7.53% 7.01% 7.07% 6.89% 5.94% 5.79% 6.19% 5.65% 5.55% 4.76%Senior Baa-rated debt (%) 8.34% 7.36% 8.08% 7.71% 7.78% 7.53% 6.71% 6.90% 7.99% 7.16% 6.66% 5.47%Risk Premium (%) 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60% 5.60%Beta 1.24% 1.13% 1.16% 1.18% 1.18% 1.14% 1.15% 1.15% 1.11% 1.09% 0.95% 0.80%Cost of equity (%) 8.04% 6.86% 7.59% 7.08% 7.14% 6.95% 6.00% 5.85% 6.25% 5.71% 5.60% 4.80%WACC 7.82% 6.69% 7.39% 6.83% 6.81% 6.63% 5.82% 5.79% 6.19% 5.62% 5.54% 4.76%

Economic Value Added (EVA) RONA (NOPAT/BEGINNING CAPITAL) 13.19% 12.34% 11.40% 14.96% 13.10% 11.02% 14.30% 17.06% 17.22% 14.23% 12.45% 14.15% WACC 7.82% 6.69% 7.39% 6.83% 6.81% 6.63% 5.82% 5.79% 6.19% 5.62% 5.54% 4.76% Spread -1.01% -0.24% -1.91% 2.24% 0.63% -1.10% 3.04% 5.04% 5.13% 2.99% 1.89% 5.11% X beginning capital ($mm) $6,932 $7,195 $8,280 $9,679 $11,796 $12,514 $13,350 $18,845 $17,161 $20,007 $20,802 $23,391 EVA (annual) ($70) ($17) ($158) $217 $74 ($138) $406 $950 $880 $598 $393 $1,195 EVA (cumulative) ($70) ($87) ($245) ($29) $46 ($92) $314 $1,264 $2,144 $2,742 $3,135 $4,331

Market Value Added (MVA) Market value of equity ($mm) $11,008 $12,035 $13,630 $14,963 $16,673 $17,282 $21,896 $83,538 $66,663 $61,068 $70,839 $84,167 Long-term debt ($mm) 862 852 1,127 1,729 2,573 2,583 2,191 1,912 2,981 4,648 3,945 3,149 Capital (market value) ($mm) 11,870 12,887 14,757 16,692 19,246 19,865 24,087 85,450 69,644 65,716 74,784 87,316

Book value of equity ($mm) $3,720 $3,945 $4,647 $5,151 $5,901 $6,087 $6,087 $12,474 $9,735 $10,248 $12,455 $14,852 Long-term debt ($mm) 862 852 1,127 1,729 2,573 2,583 2,191 1,912 2,981 4,648 3,945 3,149 Capital (market value) ($mm) 4,582 4,797 5,774 6,880 8,474 8,670 8,278 14,386 12,716 14,896 16,400 18,001 MVA (market value - book value) $7,288 $8,090 $8,983 $9,812 $10,772 $11,195 $15,809 $71,064 $56,928 $50,820 $58,384 $69,315

FedEx vs. UPS Annual EVA

($600)

($400)

($200)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

UPS Annual EVA

FedEx Annual EVA

Financial and Analystical RatiosFedex Corp 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Activity AnalysisAvg days outstanding 44.1 42.6 41.82 41.79 42.67 44.11 39.74 44.57 46.98 46.98 44.25 41.54Working Capital Turnover (42.21) (817.85) 37.64 103.73 93.51 67.84 208.05 47.08 46.37 98.37 28.5 37.11Fixed assets Turnover 2.21 2.25 2.46 2.53 2.5 2.4 2.49 2.67 2.58 2.42 2.48 2.58Total Asset Turnover 1.38 1.35 1.42 1.46 1.53 1.51 1.64 1.58 1.58 1.47 1.49 1.46

Liquidity AnalysisCurrent Ratio 0.87 0.99 1.15 1.05 1.07 1.09 1.03 1.13 1.14 1.06 1.25 1.18Cash Ratio 0.06 0.11 0.26 0.2 0.06 0.06 0.08 0.12 0.02 0.04 0.11 0.16Cash from Operations Ratio 0.36 0.5 0.5 0.58 0.58 0.51 0.61 0.64 0.56 0.63 0.76 0.56Defensive Interval 0.7 0.78 0.91 0.92 0.68 0.72 0.8 0.92 0.94 0.87 0.92 1.02

Long-Term Debt and Solvency AnalysisDebt/Equity Ratio 1.24 1.21 0.95 0.7 0.52 0.51 0.41 0.29 0.37 0.36 0.28 0.28Times Interest Earned 1.36 1.82 2.92 3.73 4.31 5.06 6.42 7.78 7.83 6.58 6.98 10.51Fixed-charge coverage 0.34 0.46 0.64 0.65 0.61 0.57 0.74 0.75 0.72 0.65 0.61 0.83Capital Expenditure Ratio 0.15 0.21 0.22 0.28 0.23 0.22 0.29 0.27 0.23 0.25 0.27 0.22Cash from operations/debt Ratio 0.27 0.36 0.42 0.65 0.71 0.66 1.04 1.29 0.91 0.96 1.23 0.93

Profitability AnalysisMargin before Interest and Tax 3.67 4.67 6.26 6.29 6.07 5.94 6.82 6.93 6.69 6.09 5.79 6.54Net profit margin (1.51) 0.69 2.41 3.17 3.00 3.14 3.17 3.76 3.77 2.98 3.45 3.69Return on assets (1.63) 4.38 6.45 7.09 6.75 6.51 6.94 7.33 7.32 5.71 6.38 6.30Return on total equity (7.20) 3.22 10.62 13.25 11.95 12.19 12.70 13.54 14.38 9.90 10.85 11.39Financial Leverage effect (21.85) 7.43 26.64 28.87 32.51 35.85 29.48 35.63 42.35 28.59 31.87 44.36

Growth 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-'00 00-01 01-02 02-03Sales 3.42 8.60 10.76 9.39 12.13 37.79 5.67 8.84 7.52 4.98 9.12Book assets 6.04 3.44 7.36 4.13 13.83 27.02 9.93 8.25 15.73 3.54 11.39Net income before unusual (gain) loss (196.51) 86.11 45.61 3.42 17.37 37.91 26.73 9.03 (15.10) 24.07 14.48Net income (147.34) 279.40 45.61 3.42 17.37 39.26 25.51 9.03 (15.10) 21.50 16.90Operating income 31.67 45.51 11.40 5.53 9.65 58.27 7.43 4.99 2.14 (0.16) 23.30

Financial and Analystical RatiosUPS Ratios 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Activity AnalysisAvg days outstanding 23.13 23.1 25.66 30.5 34.81 38.57 37.68 39.67 44.79 53.16 54.92 51.6Working Capital Turnover 267.78 4748.29 161.79 80.63 20.39 20.81 14.51 3.9 11.35 10.33 9.82 7.72Fixed assets Turnover 2.59 2.63 2.52 2.34 2.19 2.04 2.18 2.34 2.41 2.28 2.3 2.41Total Asset Turnover 1.83 1.86 1.75 1.66 1.5 1.41 1.45 1.17 1.37 1.24 1.19 1.16

Liquidity AnalysisCurrent Ratio 1.03 1 1.04 1.09 1.35 1.32 1.46 2.65 1.58 1.64 1.57 1.79Cash Ratio 0.06 0.12 0.09 0.07 0.12 0.14 0.44 1.5 0.43 0.35 0.54 0.72Cash from Operations Ratio 0.69 0.74 0.56 0.66 0.6 0.73 0.77 0.53 0.61 0.84 1.01 0.84Defensive Interval 1.71 1.83 1.47 1.36 1.38 1.6 3.12 5.13 3.07 2.82 4.98 4.57

Long-Term Debt and Solvency AnalysisDebt/Equity Ratio 0.23 0.22 0.24 0.34 0.44 0.43 0.36 0.19 0.37 0.5 0.37 0.26Times Interest Earned 18.68 23.59 20.85 17.19 13.71 7.38 12.17 16.08 19.58 16.83 23.15 36.41Fixed-charge coverage 18.68 23.59 20.85 17.19 13.71 7.38 12.17 16.08 19.58 16.83 23.15 36.41Capital Expenditure Ratio 0.23 0.26 0.21 0.22 0.19 0.22 0.25 0.19 0.22 0.29 0.41 0.33Cash from operations/debt Ratio 1.67 2.04 1.43 1.13 0.74 0.94 1.1 0.92 0.76 0.75 1.22 1.22

Profitability AnalysisMargin before Interest and Tax 7.74% 8.20% 7.95% 10.29% 9.07% 7.56% 12.47% 14.74% 15.19% 12.69% 12.81% 13.16%Net profit margin 3.12% 4.55% 4.82% 4.96% 5.12% 4.05% 7.02% 3.26% 9.86% 7.83% 10.18% 8.65%Return on assets 6.47% 9.10% 9.10% 9.24% 8.65% 7.16% 11.69% 4.91% 14.61% 10.68% 12.73% 10.44%Return on total equity 13.87% 20.53% 20.30% 20.25% 19.42% 14.93% 24.27% 7.08% 30.14% 23.41% 25.55% 19.51%Financial Leverage effect 35.59% 46.16% 58.39% 53.41% 60.16% 36.82% 60.70% 39.72% 107.00% 61.51% 56.55% 62.38%

Growth 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-'00 00-01 01-02 02-03Sales 7.65% 10.08% 7.51% 6.29% 40.00% 10.37% 9.13% 10.05% 2.94% 2.04% 7.08%Book assets 5.93% 16.80% 13.08% 18.26% 6.41% 7.26% 35.01% -5.99% 13.73% 6.99% 9.68%Net income before unusual (gain) loss 5.92% 16.51% 10.57% 9.88% -20.68% 91.53% -49.28% 232.28% -17.35% 34.19% -10.94%Net income 56.86% 16.51% 10.57% 9.88% -20.68% 91.53% -49.28% 232.28% -18.23% 32.64% -8.93%Operating income 14.08% 6.74% 39.21% -6.33% -16.31% 81.98% 29.06% 13.39% -14.02% 3.01% 10.01%

-10.00%

-5.00%

0.00%

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10.00%

15.00%

20.00%

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30.00%

35.00%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

UPS Net Profit Margin

UPS ROE

FedEx Net Prfit Margin

FedEx ROE


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FedEx UPS Presentation