Customer Presentation

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• Serves more than 220 countries
• Approximately 140, 000 employees worldwide
• Transports more than 3.3 million packages every
  business day
• 670 aircraft and more than 42,000 vehicles
• More than 2.5 million customers are connected
  with FedEx electronically through its web site or
  customer automation systems

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FedEx Strengths

• People

• Hub and Spoke distribution system with integrated
  air/ground transportation

• Unsurpassed physical and virtual network

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Hub Strengths

• State of the Art Sort Automation
• Low Visibility Approach Capability at all Hubs
• System Redundancy

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FedEx Express Hub Network

• FedEx Hubs are located in MEM, IND, AFW, EWR,
  OAK, ANC, CDG, SFS coming soon are
  Greensboro, NC Guangzhou, China

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Indianapolis National HubPast, Present, and
Future
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Indianapolis Milestones

• Opened October 1988
• Six Expansion Projects Completed to date
• Expansion Four was the largest completed in
  1998 at a Cost of Approximately 300 M
• Phase VI was completed in 2000 and included a 12k
  piece per hour international operation
• First Paperless Clearance Operation for US Customs

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Original Hub Sort System - 1988

• (33K pph conveyable box)

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Growing to current day Operating as the 2nd
Largest Operation in Express

• (75K pph conveyable box)

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Indianapolis Provides Direct Service To 59
Cities in 32 States
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Indianapolis Current Day

• 80 Flights
• 201 Truck Routes
• Processing more than 390,000 boxes, 200,000
  documents, and 2,500 freight shipments per day
• 75,000 piece per hour box system
• 96,000 piece per hour document system

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Day Sort Flights and Trucks
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Night Sort Flights and Trucks
Global
Domestic
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International Routings

• The Indy Hub has international flights to Canada,
  Europe, and Asia.
• Mexico and South America destination freight is
  routed through the Memphis Hub.
• Connecting flights run from hub to hub.

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Next Phase Phase VII

• 140M investment
• 600,000() Square foot expansion
• 14 additional A/C gates from 62 to 76
• 33 increase in system capacity
• 1,000 additional employees
• Ability to double existing international
  capacity from 12k pph to 24k pph

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INDH Phase VII Site Expansion - 2008
Perimeter Road relocation required for further
gate expansion
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INDH Phase VII Facility Expansion
Current MX/IP Offices, will be relocated to allow
IP cage and stage growth
Import System
Existing Secondary
Secondary Expansion
Existing Secondary
Existing Primary
Expansion
Import building shell Future 24 k PPH
Freight Building
1 New Input 8 Secondaries with 128 new Load
Positions 6K PPH Dangerous Goods Sort 99,000 PPH
New hub capacity
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Facility Facts

• Past Present 2008
• Number of Daily Sorts 2 5
  5
• Hub Employees 336 3,500
  4,500
• Building Footprint (ft2) 0.6M
  1.9M 2.5M
• Total on Airport Acreage 100
  263 517
• Total Avg. Pkgs. Sorted Daily 550 K
• Total FedEx Indy Investment 700 M

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Sort Capabilities

• Past Present 2008
• Conveyable Box Sort 33 K 79 K 99 K
• Document Sort 64 K 96 K 96 K
• Intl Import Clearance 0 K 6 K 12 K
• Freight Build-Up/ 10 LP 117 LP
  117 LP
• Breakdown
• Sort Capabilities 97 K 181 K
  207 K
• (Box Document)

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Aircraft Parking Capabilities

• Past Present 2008
• Wide Body Aircraft 6 39 53
• Narrow Body Aircraft 22 23 23
• Total Aircraft Gates 28 62 76

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Benefits of Mid-Field Terminal

• Ease in airport ingress / egress
• Taxi time reduction on aircraft resulting in
  reduced fuel consumption and improved package
  availability
• Contingency aircraft parking at the old terminal
• The ability to continuously expand the
  Indianapolis based facility beyond 99k Phase VII.

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Opportunities with the I70 Relocation Midfield
Terminal Projects
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By Comparison Memphis Hub

• Largest Hub in the FedEx system.
• Has complete connectivity to 220 countries.

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Memphis Hub Facts

• 178 Aircraft Gates
• 200 Miles of Belts
• Max Sort Capacity
• 160,000 Box Packages per hour expandable to 180k
  pph
• 294,000 Documents per Hour

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Memphis Flight and Trucks

• Night
• Domestic Flights 135
• Direct International Flights 15
• Trucks 60
• Day
• Domestic Flights 85
• Direct International Flights 3
• Trucks 115

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Memphis Domestic Routes
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Opportunities for continued Growth.

• The development of a steadfast strategy through a
  collaborative effort led by local government,
  business leaders, and the Academic community.
• Capitalize on Indianas greatest assets
• Location.Location.Location Crossroads of
  America
• Bio-Pharma
• Agriculture
• Alternative Energy
• Transportation Capabilities
• FedEx
• Integrated Highway Network the most vast
  network in the U.S.
• The design of key curriculums supportive of the
  stated strategy to eliminate brain drain.

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Fast Facts.

• Access the collapsing of space and time, and
  the expansion of information, is key in the
  interaction and exchange among people,
  businesses, and nations.
• Access enables companies, both large and small,
  to consider the world their market.
• Indiana is poised to become the countrys
  logistics center.
• Manufacturers and Consumers, alike, are able to
  realize savings via streamlined global supply
  chains.
• 80 of the population in Canada and the U.S. are
  within a days truck drive from Central Indiana,
  and
• More than 60 of the major U.S. business markets
  can be connected within a one day truck run as
  well.

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Critical Success Factors.

• Commitment to and investment in marketing the
  Strategy
• Embracing of globalization
• Trans-border exportation focusing on what we
  have and who needs it (e.g. China where basic
  resources are becoming extinct).
• Capitalizing on opportunities associated with raw
  imports.
• Trade liberalization
• Modernization of Regulatory Agencies (e.g. USCBP)

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Thank you