1. FedEx Corporation November, 2012

2. © This is a licensed product of Ken Research and should not be copied Table of Contents  Executive Summary Executive Summary  Business Overview Business Overview  Corporate Timeline  Key Development  Acquisitions  Ownership structure  Organizational Structure  Supply Chain Model  Product Profile Product Profile Business Model

3. © This is a licensed product of Ken Research and should not be copied Table of Contents (Contd.)  SWOT Analysis SWOT Analysis  Competitive Analysis Competitive Analysis  Operational Overview Operational Overview Management Profile Board of Directors Profile  Management/ Future Outlook Management/ Future Outlook  Financial and Operational Performance Financial and Operational Performance Share Price Performance Analyst Recommendation Future Projections

4. © This is a licensed product of Ken Research and should not be copied List of Figures and Tables Figure 1: FedEx Corporation Corporate Timeline, FY’2000-FY’2012 Figure 2: FedEx Corporation Organizational Structure Figure 3: FedEx Corporation Supply Chain Model Figure 4: FedEx Corporation Segmentation on the Basis of Business Segments Figure 5: FedEx Corporation Annotated Stock Chart on the Basis of Share Price and Volume in USD and Thousand Shares, Oct’2011-Oct’2012 List of Figures List of Tables Table 1: FedEx Corporation Revenue and Net Profit Margin in USD Million and Percentage, FY’2008-FY’2012 Table 2: Major Investments in the Company Evolution on the Basis of Deal Stake, Deal Value and Implied Enterprise Value in Percentage and USD Million, FY’2010-FY’2012 Table 3: FedEx Corporation Top Ten Institutional Investors on the Basis of Shares Held, Share Change, Percentage Change and Percentage of Share Outstanding in Percentage and Units

5. © This is a licensed product of Ken Research and should not be copied List of Figures and Tables (Contd.) Table 4: FedEx Corporation Financial Overview on the basis of Revenue, EBITDA margin and Net Profit margin in USD Million and Percentage, FY’2008-LTM October 2012 Table 5: FedEx Corporation Valuation in USD Million, as on 11th October 2012 Table 6: FedEx Corporation Company Multiples on the Basis of Revenue, EBITDA and Price to Earning, FY’2009-LTM October 2012 Table 7: FedEx Corporation Company Comparable on the Basis of Market Capitalization, Net Debt, Enterprise Value, Revenue, EBITDA, PAT and Company Multiples, LTM Oct’2012 Table 8: FedEx Corporation Financial Comparison on the Basis of Revenue in USD Million, FY’2007-FY’2011 Table 9: FedEx Corporation Future Projection on the Basis of Revenue, EBITDA and PAT in USD Million, FY’2013- FY’2017

6. © This is a licensed product of Ken Research and should not be copied Executive Summary: FedEx Corporation A Global Shipping and Logistics Solutions Corporation 6 Company Overview The Standard Industrial Classification (SIC) for FedEx is registered under Air Courier Services code 4513. FedEx Corporation is a logistic company offering integrated business applications through its operating companies, competing as a group and managed jointly, under the respected FedEx brand Key Differentiators  FedEx express, ground, freight and expedited delivery services generate more than 9 million shipments  Has 663 aircrafts, 90,000 motorized vehicles, 685 world service centers, 40,861 drop boxes, 6,409 authorized ShipCenters and 1768 office locations Management Team  Frederick W. Smith: Chairman, President and CEO since January 1998  Alan B. Graf, Jr.: Executive VP, Chief Financial Officer since January 1998 Financials Projections (in USD Mn) Competition and Positioning  FedEx corporation is positioned third in terms of revenue, with DHL securing the top position. But in terms of aircraft fleet, the company owns the highest number of aircrafts as compared to UPS which owns only 527 aircrafts Business Strategies  Aims to compete globally in all forms of logistic services under one brand  Operate independently to meet customer requirements through its independent logistic networks  Sustain loyal relationships with workforce, customers and investors by managing all four logistic service arms collaboratively ParticularsFY’08FY’09FY’10FY’11FY’12 Revenue Growth%7.8%-6.5%-2.1%13.2%8.6% Net Profit%

7. © This is a licensed product of Ken Research and should not be copied Business Overview: Company Timeline and Evolution 7 2003 2001 2004 2006 2007 20002002 2005 2011 Parent company FDX was renamed "FedEx Corporation“. FedEx Trade Networks was created with the acquisitions of Tower Group International and WorldTariff and FedEx Custom Critical acquired Passport Transport FedEx Express and the U.S. Postal Service forged a public-private alliance. FedEx Corporation acquired American Freightways for USD 1.2 billion  FedEx Home Delivery completed its expansion to serve 100% of the U.S. population  The corporation had branded American Freightways as FedEx Freight East and Viking Freight as FedEx Freight West FedEx Express completed its first 30 years of continuous operations and introduced its first hybrid-electric truck to the delivery fleet  Acquired Kinko's for USD 2.4 billion and expanded its retail access to all of the 1,200-plus Kinko's stores of which 400 stores operated 24 hours a day, seven days a week  Acquired Parcel Direct, a leading parcel company and later rebrands it as FedEx SmartPost  Announced the development of a Asia Pacific hub in Guangzhou Baiyun international airport, China for USD 150 million  Launched two global flights, Eastbound and Westbound  FedEx acquired Indian freight service provider Prakash Air Freight for USD 30 million in cash  The company had acquired Watkins Motor Lines  Delivered fragile remnants of Titanic to an exhibit in Atlanta  Acquired 50% stake of DTW Group's in FedEx-DTW International Priority express JV for USD 400 million  FedEx Kinko luanched Print Online services FedEx Express acquired the logistics, distribution and express businesses of AFL Pvt. Ltd. and its affiliate, Unifreight India Pvt Ltd  Acquired the operations of MultiPack in Mexico with its 48 distribution centers, 13 warehouses and more than 500 retail outlets  Enhanced its FedEx office print services by providing access to Google Docs 2011  Acquired a logistic firm, Rapidao Cometa Logistica e Transporte S.A. and TATEX SAS from La Poste SA and Xaap Finance SASU  Announced plans to restructure and increase profits by USD 1.7 billion within next 3 years 2012

8. © This is a licensed product of Ken Research and should not be copied Business Overview: Major Investments in the Company Evolution 8 AcquisitionsTransaction Rationale Announced Date TargetDeal Type Stake Acquired % Deal Value (USD mm) Implied EV (USD mm) 29/05/2012Rapidão Cometa Logistica e Transporte S.A. Acquisition100%N/A 10/05/2012TATEX SASAcquisition100%N/A 9/05/2012FedEx Kinko's Japan Co., Ltd. Block Sales100%44 05/04/2012OPEK Sp. z o.o.Acquisition100%N/A 30/04/2011Fedex Freight West: 39-Building Portfolio of Industrial Properties in Florida, Texas, and California Block Sales100%87.10 25/07/2010Servicios Nacionales Mupa, S.A. de C.V. (MultiPack) Acquisition100%128  To access multinational transportation, ground and logistics network  To continue its expansion across different countries like Latin America, Europe, Brazil, Mexico expansion through key strategic investments  The acquisition of Polish courier company Opek Sp.z o.o. to expand the company’s annual shipments to 12.5 million and to increase the annual revenue by an estimated USD 70 million  FedEx expanded its footprint in the Mexican market in order to meet the demand of businesses and respond to the growth potential of the dynamic Mexican economy

9. © This is a licensed product of Ken Research and should not be copied Business Overview: Ownership Structure 9 Shareholders Structure Particulars%, unless stated Shares Outstanding (Million)314.1 Institutional Ownership79.88% Top 10 Institutions4.35% 5%/Insider Ownership5.27% Number of Institutions Holding Shares933 Float93.4% Institution NameShare HeldShare Change% Change% OutstandingRpt Date PRIMECAP Management Company 20,645,262245,8141.216.57302/08/2012 Dodge & Cox 18,977,806415,9672.246.04202/08/2012 BlackRock, Inc. 14,655,112620,1444.424.66630/06/2012 Southeastern Asset Management, Inc. 13,607,9141,343,72310.964.33230/06/2012 Wellington Management Company LLP 13,450,949455,2383.504.28330/06/2012 The Vanguard Group, Inc. 13,058,698367,3952.904.15830/06/2012 State Street Global Advisors, Inc. 11,733,392337,8162.963.73630/06/2012 T. Rowe Price Group, Inc. 10,720,652(2,048,717)(16.04)3.41330/06/2012 Harris Associates L.P. 9,956,9502,754,13038.243.17030/06/2012 Greenhaven Associates Inc. 9,956,9502,754,13038.243.17030/06/2012 Top 10 Institutional Owners

10. © This is a licensed product of Ken Research and should not be copied Product Profile: Diverse and Evolving Logistics Operations 10 FedEx ExpressFedEx GroundFedEx FreightFedEx Services  The services provided by the firm includes specialty logistics services, critical inventory logistics, shipment management and temperature- controlled transportation  Deals in international shipping, clearing of packages through customs barriers for customers, global cargo distribution and trade facilitation solutions  Provides less costly specialized small- package shipping, offer’s reliable business-to-business delivery and convenient residential delivery services  Less time-sensitive business-to-consumer low-weight package shipping using the U.S. Postal Service for final delivery to residences  Provides less-than- truckload (LTL) freight services to every U.S. ZIP code and also provides freight services to Canada, Mexico, Puerto Rico and the U.S. Virgin Islands  Involved in time specific critical shipment transport services for faster next- day-delivery  The Custom Critical Air Expedite offers exclusive charters and time-specific airfreight services  Provides access to printing and shipping services to the customers. Provides them with services like copying, digital printing, professional finishing, document creation, direct mail, signs and graphics, Internet access, computer rental and others  Keeps customer contact centers in synchronization. Offers worldwide revenue operations, claims and package trace services

11. © This is a licensed product of Ken Research and should not be copied Product Profile: Contd. Consistent, Dependable and Convenient Time-sensitive Logistics Services 11  Provides services in the field of logistics by specialized critical inventory and transportation management services through airways, roadways, seaways. Provides customers with global duty and taxes, automatic fire-suppression system, air freight forwarding services and others to ensure efficient and timid delivery. FedEx Express generated a revenue of USD 26,515 million in FY’2012  It offers three U.S. overnight package delivery services: FedEx First Overnight, FedEx Priority Overnight and FedEx Standard Overnight. FedEx SameDay service is available for urgent shipments up to 70 pounds to any U.S. destination. FedEx Express also offers U.S. express overnight and deferred freight services backed by money-back guarantees to handle the needs of the time-definite freight market  In 2012 it acquired Servicios Nacionales Mupa, S.A. de C.V. (Multipack) a Mexican domestic express package delivery company; the Polish domestic express package delivery company Opek Sp. z o.o.; the French express transportation company, TATEX; and the Brazilian transportation and logistics company, Rapidão Cometa Logística e Transportes S.A.  Competitors within the US includes United Parcel Service, Inc. (UPS). FedEx Express’s principal international competitors are DHL, UPS, TNT, other foreign postal authorities Key Takeaways:

12. © This is a licensed product of Ken Research and should not be copied Product Profile: Business Model Compete Collectively, Operate Independently and Manage Collaboratively 12 View Catalogue and Purchases OrdersCatalogue FedEx Shipping Software Shipping Labels Packaging FedEx Delivery Internet Business FirmCustomersMerchant Server Order Information Tracking and Order Information

13. © This is a licensed product of Ken Research and should not be copied Financial & Operational Performance: Financial Summary and Key Performance Indicators  The commercial transportation industry is predicted to increase by 1.6% in revenues over the next 5 years to USD 189 billion. This increase in revenues should be spurred by high growth rates in emerging markets and an improved global GDP rate  Since 2010, couriers have increased workforces because demand has improved causing increased operating margins 13 Financial Overview (USD Billion, Percentage) Valuation Source: Ken Research Notes: *Share price as of 11 th October 2012 LTM refers to last twelve months NM refers to not meaningful Fiscal year ending 31 st May USD million, unless stated Share Price (USD) Share Outstanding (Million) Market Value Net Debt Associates/ Minority Interest Enterprise Value Dec ye (x)FY’09FY’10FY’11FY’12LTM EV/ Revenue EV/EBITDA P/E ParticularsFY’08FY’09FY’10FY’11FY’12LTM Revenue Growth% EBITDA% Net Profit% The Revenue for FedEx corporation has grown at a CAGR of ~% from FY’2010 to LTM ending August 2012

14. © This is a licensed product of Ken Research and should not be copied Financial & Operational Performance: Share Price Performance 14 Share Price Performance

15. © This is a licensed product of Ken Research and should not be copied Financial & Operational Performance: Analyst Recommendation 15 Analyst Recommendation The LTM revenue has shown a small increment of 0.6% from FY’2012. However, the profit after tax has showcased a decline of 0.2%. But still we can expected growth in FY’2013 due to increase in profitability of FedEx Freight segment from yield growth and efficiency improvements and because of the sustained strong performance of FedEx Ground segment. Macroeconomic stabilization and a declining oil price are two significant price triggers for FedEx corporation 1 Average LTM August 2012 Performance 2 Competitive advantage in International Trade FedEx’s strong international delivery network presence will allows it to take advantage of the growth in international trade, as it is expected to grow more than global GDP growth by 2.0-2.5 times till FY’2015. 3 Lacks industry leadership In the last 9 years, FedEx corporation has been less profitable than its primary competitor, obtaining an average ROIC of just 9% as compared to UPS’s 18%. UPS’s industry leadership due to operational efficiencies is expected to continue.

16. © This is a licensed product of Ken Research and should not be copied Competitive Analysis: Company Name Competitive Analysis By Service Offered/Revenue/Other Key Indicators 16 NAMEServices OfferedRevenueOther Key Indicators  FedEx Express  FedEx Ground  FedEx Freight  FedEx Services FY’2012: USD 42,680 million (up 8.6% y-o-y)  663 aircrafts, 90,000 motorized vehicles, 685 world service centers, 40,861 drop boxes, 6,409 authorized Ship Centers and 1,768 office locations  685 FedEx World Service Centers and 375 airports served worldwide  The UPS Store: retail shipping, postal, printing and business service centers  UPS Air Cargo: freight shipment  UPS Capital: provides financial services to businesses with international supply chains  UPS Consulting: offers real-world strategic direction and guidance to align supply chain processes and operations with business strategies  Customer Solutions: customizing business processes  UPS Express Critical: urgent transportation and logistics CY’2011: USD 53,817 million (up 7.2% y-o-y)  UPS Store 4,688; Mail Boxes 24; UPS Customer Centers 1,000; Authorized outlets 13,000; UPS Drop Boxes 40,000  92,258 package cars, vans, tractors, motorcycles, including 2,484 alternative-fuel vehicles. Has 527 aircrafts  Market leading technology and industrial process expertise *Fiscal year ending 31 st May **Calendar year ending 31 st December

17. © This is a licensed product of Ken Research and should not be copied Competitive Analysis: Company Name Competitive Analysis By Business Strategies/Capital Expenditure 17 NAMEBusiness Strategy Capital Expenditure FedEx Ground is focusing more on the steady increase in online shopping. The company is focusing more on technological advancement in terms of improvements in tracking functions and the ability to negotiate large contracts. FY’2012: USD 4,007 million (up 17% y-o-y) Focus towards providing support for the fast growing Business-to- Consumer (B-to-C) market to allow the receivers of UPS shipments to control aspects of the delivery. Strategy to develop new business model to capitalize on new opportunities for growth. Making investments in healthcare capabilities. Focusing towards technological up gradation for increased productivity and efficiency. CY’2011: USD 2,005 million (up 44.3% y-o-y) The company’s strategy is to operate its own hubs and it maintain hubs in Hong Kong, Singapore and Bangkok. These in turn, will be connected with 50 gateways located strategically throughout the Asia- Pacific region. The North Asia Hub will replace the existing gateway at Shanghai Pudong Airport, representing an investment of around USD 175 million over the lifetime of the facility. CY’2011: USD 2,394.4 million (up 36.5% y-o-y) Building strategies to further expand growth opportunities with customers in the healthcare, automobile, technology and lifestyle sectors, among others to provide innovative and specialized delivery solutions. Plans to provide integrated services on key trading lanes in Asia (China). Plans to revamp European Air Network to adjust for an increasing demand from customers for Economy Express. CY’2011: USD 253.4 million (up 27.3% y-o-y) *Fiscal year ending 31 st May **Calendar year ending 31 st December

18. © This is a licensed product of Ken Research and should not be copied Competitive Analysis: Company Name By Financial Performance (Topline/ Bottomline) 18 (USD mm, unless stated) Market Cap Net Debt Enterprise Value (EV) Last Twelve Months (LTM) Company Revenue EBITDAPATEV/RevenueEV/EBITDAP/E FedEx Corporation UPS Deutsche Post AG TNT Express Mean Median CompanyCY’07CY’08CY’09CY’10CY’11 UPS Deutsche Post AG TNT Express Company Comparables Analysis Financial Comparison – Revenue *Calendar year ending 31 st December

19. © This is a licensed product of Ken Research and should not be copied Future Projections: FedEx Corporation Strong Foundation with Attractive Share Valuation and Increasing Expected Earning Capacity 19  The revenue of FedEx corporation is expected to increase at a CAGR of 4.9% from FY’2013 to FY’2017 to reach USD 53,645.5 million in FY’2017 largely due to an expansion in international trade. The expansion in international trade and increasing amount of international diversification will act as revenue growth catalysts  The GDP growth of the US is expected to improve given that the economy expanded at a 1.3% annual rate in the second quarter of 2012. The company generates 70% of its revenue from the US and its fastest growing and most profitable unit, FedEx Ground, is almost entirely located in the US. Thus providing favorable growth prospects for the company  The operating margin is expected to grow at an annual rate of 1.7% till FY’2017 which are very conservative compared to the long-term goals of the company. This is because of the capital intensity and relatively low-margin model of the company. Even a moderate increase in the company’s operating margin would result in a significant increase in estimation of the intrinsic value of the company Particulars (USD Million)FY’2013FY’2014FY’2015FY’2016FY’2017 Revenue Growth% EBITDA Growth% PAT Growth% Future Projections Source: Ken Research Notes: *Fiscal year ending 31 st May

20. © This is a licensed product of Ken Research and should not be copied Disclaimer The research reports provided by Ken Research are for the personal information of the authorized recipient and is not for public distribution and should not be reproduced or redistributed without prior permission. You are permitted to print or download extracts from this material for your personal use only. None of this material may be used for any commercial or public use. The information provided in the research documents is from publicly available data and other sources, which are reliable. Efforts are made to try and ensure accuracy of data. With respect to documents available, neither the company nor any of its employees makes any warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use will not infringe privately owned rights. The report also includes analysis and views expressed by our research team. The research reports are purely for information purposes. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in the research documents and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information. Ken Research will not accept returns of reports once dispatched due to the confidentiality of information provided in our reports. In case, a report qualify for return, we will issue a credit, minus shipping charges, of equal value to the original purchase price, toward a future purchase—no refunds. The decision about whether the product return can be accepted or not is solely at our discretion. Any dispute will be subject to laws of India and exclusive jurisdiction of Indian Courts. No part of this manual or any material appearing may be reproduced, stored in or transmitted in any other format without written permission of Ken Research. This is purely for the reference of the concerned entity. 20