Don Gibson Vice President FedEx Corporation

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ConnectednessRedefined

• Don GibsonVice PresidentFedEx Corporation

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What is Connectedness?
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Audience Project..Win A Prize
Audience Checklist
DO NOT have a Zune/iPod
DO NOT have a Blackberry or text message from
phone
DO NOT have a LinkIn, MySpace, or Facebook acct
DO NOT have a Twitter, Haiku, or Second Life acct
DO NOT have a Wii, XBox, or PS3
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Consumers Who Use the Web
Base U.S. Online Customers
Source Forrester Research
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What Can You Give Up?
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Evolution of the Market Place
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FedEx The Beginning

• Federal Express invented the modern air/ground
  express industry
• The start-up delivered 186 packages to 25 U.S.
  cities on April 17, 1973, its first night of
  continuous operations

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FedEx Physical Network

• 672 aircraft and 75,000 vehicles
• 1,700 FedEx Office locations

• 7.5 million daily shipments
• 220 countries and territories

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Market Access Connectedness
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eCommerce Continues to Explode

• By 2010
• eCommerce will account for 13 of total U.S.
  retail sales
• Online sales in the U.S. will reach 331B
• 40 of U.S. households will shop online
• U.S. online sales growing at 15 compound annual
  growth rate
• Source Forrester Research

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The Marketplace Re-Defined

• The marketplace has changed more in the past 30
  years than in the previous 300
• A five-fold increase has taken place in global
  e-commerce trade between 2002 and 2006, from
  2.3T to 12.8T

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The Marketplace
redefined
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The Marketplace Re-Defined
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Our business is increasingly transacted via
digital channels.

• Over 87 of all FDX parcels are initiated
  digitally in FY08
• Over 1 million orders valued at 100M in revenue
  were generated digitally via POL in the first 18
  months in market.

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The future bundled digital experience will work
across all digital platforms and OpCos.
Digital Access Channels Powering Access
Enterprise Experiences
Software
Bundled Digital Experience
Becoming a Customer
fedex.com
Shipping
Server
Visibility
3rd Party Integration
Account Mgmt / Admin
Wireless
Customers
Office Printing
Web Services / API
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FedEx Digital Network

• 6 million shipments via eCommerce solutions each
  day
• 900 million fedex.com shipping transactions each
  day
• 7 million tracking requests each day
• 3,000 transactions per second
• 4 million connected customers

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FedEx IT Fast Facts
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FedEx QuickShip
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FedEx Desktop
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FedEx Mobile
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FedEx Launch A Package
FedEx is proving it can deliver in social
networks Mediaweek

• Facebook Widget
• Users to fling FedEx packages
• 270,000 downloads in its first week

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Web Services
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FedEx Ground Multiweight Courtesy Rate

• Accounts with the tool grew revenue 4X faster
  than all MWT accounts Y08 YTD-Dec YOY
• Absolute dollar growth for accounts with the tool
  17.7 M

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AutomationRequest Form
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Print Online
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Thank You!
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Economic Headwinds

• Every 1 increase in oil per barrel drives an
  additional 430M per year in fuel expenses for
  U.S. passenger and cargo airlines.

Source Air Transport Association
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Economic Headwinds
Every 1 cent increase per gallon of fuel drives
an additional 180M per year in fuel expenses for
U.S. transportation companies.
Retail industry feeling decreased consumer spend
as inflation and credit crunch tighten.
Housing market continues to lag as inventories
build and new home starts are flat.
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