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FedEx CorporationThird Quarter FY17 Earnings ReviewMarch 21, 2017

Forward-Looking StatementsCertain statements in this presentation 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 businesses and operations of FedEx

Express and TNT Express in the expected time frame, our ability to match capacity to shifting volume levels,

changes in fuel prices or currency exchange rates, a significant data breach or other disruption to our

technology infrastructure, 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 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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FedEx Executives on the Call

• Frederick W. Smith, Chairman and CEO

• David J. Bronczek, President and COO

• Alan B. Graf, Jr., EVP and CFO

• Christine P. Richards, EVP, General Counsel & Secretary

• Robert B. Carter, EVP, FedEx Information Services and CIO

• Donald F. Colleran, EVP, Chief Sales Officer

• Rajesh Subramaniam, EVP, Chief Marketing & Communications Officer

• David L. Cunningham, President and CEO of FedEx Express

• Henry J. Maier, President and CEO of FedEx Ground

• Michael L. Ducker, President and CEO of FedEx Freight

Overview

Frederick W. SmithChairman and CEO

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Marketing Review and Outlook

Rajesh SubramaniamExecutive Vice President, Chief Marketing and Communications Officer

Economic Outlook

CY16 CY17 CY18

GDP Forecast*

U.S. 1.6% 2.3% 2.5%

Global 2.3% 2.6% 2.8%

U.S. Growth*

Industrial Production (0.9%) 1.5% 2.4%

Consumer Spending 2.7% 2.7% 2.6%

* FedEx Forecast March 2017

Expectation for Continued Moderate Global Growth

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Q3 FY17 Q3 FY16 Change

U.S. Domestic Package Revenue*

$3.12B $3.04B 3%

U.S. Domestic Package ADV

2.90M 2.87M 1%

U.S. Domestic Package Yield*

$17.36 $16.83 3%

* Includes fuel surcharges

FedEx Express U.S. DomesticGrowing U.S. Domestic Package Volume, Revenue and Yield (Revenue Per Package)

Q3 FY17 Q3 FY16 Change

Int’l Export Package Revenue*

$1.97B $1.89B 4%

Int’l Priority Package ADV

407K 386K 5%

Int’l Economy Package ADV

182K 179K 2%

Int’l Export Package Yield*

$53.92 $53.14 1%

* Includes fuel surcharges and exchange rate impact

FedEx Express InternationalGrowing Demand for Priority Service

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Q3 FY17 Q3 FY16 Change

Segment Revenue* $4.69B $4.41B 6%

FedEx Ground Average Daily Package Volume

8.52M 8.34M 2%

FedEx Ground Package Yield*

$8.12 $7.65 6%

* Includes fuel surcharges

FedEx Ground GrowthGrowth in Commercial Service

Q3 FY17 Q3 FY16 Change

Segment Revenue* $1.49B $1.45B 3%

Average Daily LTL Shipments

95K 95K -

Weight per LTL Shipment (lbs)

1,172 1,177 -

LTL Revenue Per Shipment*

$239.82 $231.61 4%

* Includes fuel surcharges

FedEx Freight GrowthIncreasing LTL revenue per Shipment

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• FedEx record-breaking peak in both volume and service

• Significant enhancements to the FedEx portfolio – Long-term alliance agreement with

Walgreens for FedEx Onsite– FedEx Fulfillment

FedEx Business TrendsE-Commerce Continues to Influence Consumer Behavior

Financial Review and Outlook

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

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• Yield growth in all three segments as revenue quality continues to improve

• Operating income results impacted by negative net impact of fuel, one fewer operating day at FedEx Express and FedEx Ground, and FedEx Ground network expansion

• Effective tax rate 37.5% in Q3

FedEx CorporationThird Quarter FY17 Results

Diluted EPS before mark-to-market pension adjustments (non-GAAP)* $10.80 to $11.30

Excluding:

TNT Express integration expenses $300

TNT Express intangible asset amortization

$75

Diluted EPS with adjustments* $11.85 to $12.35

FedEx CorporationFull-Year FY17 GuidanceDollars in millions, except EPS

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

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• Volume and yield growth at Express and Ground, along with the inclusion of TNT Express, to drive earnings growth in Q4

• FY17 effective tax rate approximately 35%

• FY17 capital expenditures $5.3 billion

• FY17 contributions to tax-qualified U.S. domestic pension plans total $2 billion

FedEx CorporationFinancial Guidance

FedEx GroundNetwork Expansion, Net Fuel and Operating Day Impact Results

• FY17 capital expenditure forecast reduced

• Continued focus on balancing capacity and volume growth with yield management

• Operating income, margins and cash flow are expected to increase over the long-term

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• Working toward improved balance of volume, pricing and capacity

• U.S. industrial environment is improving

FedEx FreightResults Impacted by Salaries, Wages and Information Technology Expenses

• Benefited from higher yields and volumes

• Managing network capacity to match customer demand, reduce structural costs, modernize fleet and increase productivity

FedEx ExpressResults Impacted by Net Fuel and One Fewer Operating Day

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• Clarity around restructuring initiatives and specific needs for additional investment

• Strategic assessment highlighted projects and initiatives that will deliver the greatest benefits

• TNT Express and FedEx Express to be combined into one reporting segment in FY18

TNT ExpressIntegration Proceeding as Planned

• FY20 Express group operating profit $1.2 - $1.5 billion higher than FY17 assuming moderate economic growth and current accounting and tax rules

• Integration- and restructuring-related spending accelerated; up to $300 million in FY17, approximately $800 million over the four years

Express GroupNew Operating Income Target

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TNT Integration

David J. BronczekPresident and Chief Operating Officer

• Largest acquisition in FedEx history

• Working to integrate 54,000 team members, operations in 200+ countries and more than one million daily shipments

• Limited revisions to integration plan has provided tremendous momentum in the execution phase

IntegrationProgress To-Date Has Gone Extremely Well

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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

• Expect full integration to be completed four years from the acquisition date

Integration TNT Express Synergies, Base Business and Operational Improvements Drive Financial Performance

Integration at the country level using three models:

1. Direct Serve to Direct Serve

2. Global Service Participant or GSP (FedEx) or Associate (TNT) to Direct Serve

3. GSP to Associate or Associate to GSP

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Integration Business Integration Models

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• 33 countries integrated to date; ~50 completed or in-process at this point

• Applying valuable lessons learned to upcoming integrations

• Deployed innovative IT solution to deliver cross-scan capability; first phase launched February 2017

IntegrationAccomplishments to Date

• Phased conversion of TNT intercontinental flights to Express operations begins April 2017

• Ramping up FY18 focus on more than 25 additional countries, including many of our largest direct-serve businesses

IntegrationUp Next

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Strategic Questions?

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Non-GAAP Appendix

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”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures. The rationale for management’s use of these non-GAAP financial measures is included in the earnings release for the quarter ended February 28, 2017. Reconciliations of certain non-GAAP measures used in this earnings presentation to the most directly comparable GAAP measures are included in this Non-GAAP Appendix.

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Q3 FY17 Reconciliation for FedEx Corp.Dollars in millions, except EPS

Operating Income

Operating Margin1

Income Taxes2

Net Income3

Diluted EPS

GAAP measure $1,025 6.8% $337 $562 $2.07

TNT Express integration expenses4 78 0.5% 15 63 0.23

TNT Express intangible assetamortization

16 0.1% 3 13 0.05

Non-GAAP measure $1,119 7.5% $355 $638 $2.351 Does not sum to total due to rounding 2 Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction 3 Effect of “Total other (expense) income” on net income amount not shown4 These expenses, including restructuring charges at TNT Express, were recognized at FedEx Corporate

($25 million), FedEx Express ($31 million) and TNT Express ($22 million)

Q3 FY16 Reconciliation for FedEx Corp.Dollars in millions, except EPS

Operating Income

Operating Margin1

Income Taxes1,2

Net Income1,3

Diluted EPS

GAAP measure $864 6.8% $275 $507 $1.84

FedEx Ground legal matters4 204 1.6% 78 126 0.46

FedEx Trade Networks legal matter4 69 0.5% 26 43 0.15

TNT Express acquisition expenses 23 0.2% 8 15 0.06

Non-GAAP measure $1,160 9.2% $388 $692 $2.51

1 Does not sum to total due to rounding 2 Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction 3 Effect of “Total other (expense) income” on net income amount not shown4 Net of recognized insurance recovery

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Q3 FY17Operating

Income Margin1

GAAP measure $555 8.2%

TNT Express integration expenses 31 0.5%

Non-GAAP measure $586 8.6%

Q3 FY17 Reconciliation for FedEx Express SegmentDollars in millions

1 Does not sum to total due to rounding

Q3 FY17Operating

Income Margin

GAAP measure $ 2 0.1%

TNT Express integration expenses 22 1.2%

TNT Express intangible asset amortization* 16 0.9%

Non-GAAP measure $40 2.2%

*Primarily customer-related

Q3 FY17 Reconciliation for TNT Express SegmentDollars in millions

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Adjustments Diluted EPS

Diluted EPS before mark-to-market pension adjustments (non-GAAP)1 $10.80 to $11.30

TNT Express integration expensesIncome tax effect2

Net of tax effect

$300 (72)

$228 $0.84

TNT Express intangible asset amortizationIncome tax effect2

Net of tax effect

$ 75 (17)

$ 58 $0.21

Diluted EPS with adjustments1 $11.85 to $12.35

FedEx CorporationFull-Year FY17 GuidanceDollars in millions, except EPS

1 The year-end mark-to-market pension accounting adjustments, which are impracticable to calculate at this time, are excluded2 Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction