Connecting the world inresponsible and resourceful ways

The 3 Rs of Energy SavingsReduce Reduce fuel consumption with active asset management – rightvehicle/right route Reductions in fuel consumption = reduction in emissions

Replace Replace older vehicles with more fuel efficient vehicles

Revolutionize Drive the creation of new technologies to benefit the customer, thecompany and the environment

March 2014 2

Taking a Leadership Role

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Asset OptimizationGoal: Maximize asset life & reduce lifecycle cost Primary tools Cost per mile analysis Mileage management Vehicle placement Vehicle re-positioning Fuel management

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Mileage ManagementManage miles and route usage to maximize useful life

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Gallons Saved 98M gallons saved since end of FY05 “Slowing down” the fleet of W700s Replacing W700s with Sprinters & Reaches Placing FY12 - FY14 Sprinters on higher utilization routes

Potential to save additional 7.7M gallons annually Replacing remaining W700s with Isuzu Reach W630 Reducing category of larger vehicles (W700/Reach/W900) by an

additional 3,000 units

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Gallons Used – Projected 2020

Vehicle Count

Type

ProjectedFY14 End

State 2020Pickup 438 438Panel Van 5,090 5,090Bulk Truck 375 375Old Sprinter 2,781 0New Sprinter 7,901 13,509W630 2,111 5,228W700 7,403 0W900 1,512 2,827Other Walk-ins 354 0

27,965 27,467

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2020 GoalIn 2008, FedEx Corporation set the U.S. transportationindustry's first fuel efficiency goal with a commitment toimprove the overall fuel efficiency of the FedEx Express globalvehicle fleet 20% by 2020, as compared with its 2005performance. Less than five years later, FedEx Express surpassed this goal with amore than 22 % cumulative improvement in fuel economy for its vehicles

In early 2013, FedEx announced a new target of 30 %improvement in fuel efficiency for its global vehicle fleet by2020

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9

W700 Diesels and Reach W630 VehiclesOperating > 25K Miles Annually

109 Reachesdelivered to Californiain Feb & Mar 2012 tofill PUD shortages

March 2014

Fuel Saving Technologies – DrivingChangeAs early as 2005, Global Vehicles was telling the asset supplier marketthat we require more fuel efficient vehicles and GSEGlobal Vehicles leadership has moved (driven) our supplier base tomake available fuel efficient assets.In the area of walk-ins, GV procured Sprinters and the commercialdelivery vehicle model called the “Reach”Tractor and trailer specifications have continued to change to improvefuel efficiencyGSE improvements include the implementation of Convertor PowerUnits (CPU), some of which include cockpit air conditioning

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Testing Boundaries and New IdeasOur work with The Environmental Defense Fund paved the way forcommercial hybrid vehicles

We’ll continue to test newideas to see if they can meetthe needs of our network andindustry:

• Electric trikes in Paris• LNG and biomass at

FedEx Freight• Hydraulic hybrids at

FedEx Ground• Green roofs in Chicago• Fuel cells in Oakland

Electric Vehicle Fleet

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Hybrid Fleet

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Hybrid vehicle technology has shown promise as a means forimproving fuel economy but the technology hasn’t always been

economically sound

Natural Gas FleetNatural gas is becoming a vehicle fuel of choice for manyfleets in the USPromotes domestic fuel consumption as well as domesticenergy and economic security Reduces greenhouse gas by as much as 11% and is muchcleaner than diesel exhaust, thus reducing the amount ofexhaust components to keep the air cleanerTractors – 2 Kenworths and 2 Freightliners Panel Vans – 10 CNG powered vans

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Current Alternate Drivetrain Vehicle Fleet

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360 Hybrids133 EVs14 CNG

6 EVs

73 CNG/LPG22 EVs

9 Hybrids9 CNG10 EVs

2LPG

EV = Electric Vehicle CNG = Compressed Natural Gas LPG = Liquefied Natural Gas

Alternate Drivetrain FY14 Deployment To expand our electric fleet in the US and globally, we will be adding thefollowing vehicles 6 Renault Kangoo Euro-style panel vans – Brazil. These will be the first electricvehicles by a global delivery company in Brazil and will be ready for the World Cup andthe 2016 Olympics 31 Smith Newton – Domestic 20 Mercedes Benz Euro-style panel vans – France By the end of FY14, we will have over 220 total EVs globally

16March 2014Renault Kangoo

Alternate Drivetrain FY14 & FY15 Testingand PlanningNissan EV test First major manufacturer with plans to launch an electric panel van globally.Previous tests in Singapore and the United Kingdom. Testing planned for Brazil inJanuary, 2014 with U.S. testing to follow

Future FY15 plans include testing more technologies that have thepotential to improve fuel economy and durability while improvingemissions. Natural gas as a vehicle fuel is becoming more important. Our mission is todetermine the feasibility of an all-CNG station, including onsite fueling. We will be looking at several up and coming companies that have produced cost-effective parallel hybrid drive systems. We’ve placed these on older vehicles with lowfuel economy in the past but we’d like to evaluate what improvements may be realizedby placing hybrid systems on our newer, more efficient vehicles

17March 2014

Newest Hydrogen Project20 Hydrogen fuel cell, extended-range electric vehicles Battery electric vehicle with an on-board hydrogen fuel cell battery charger Plug in at night and the fuel cell keeps the battery charged while operating Quiet, clean, only output is water - the vehicle is completely emission free

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Hydrogen Fuel CellsHydrogen fuel cells offer an alternative to batteries, their outputis electricity and waterProvides option where electricity is being mandatedOn-highway use and GSE useProvides greater range than batteries aloneInfrastructure is minimal compared to electric charging for eachvehicle

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Hydrogen Fuel CellsCargo Tractors 15 Hydrogen fuel cell cargo tractors being deployed at the Memphis Hub

(pending Project Review Team approval for Properties site preparation) Test is for 2 years once deployed Future mandates at airports across the country for electric GSE can be fulfilled

with hydrogen fuel cells instead of batteries

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