MOVING THE WORLD FORWARD
To our shareowners,
Through an extremely challenging environment in FY21, FedEx delivered record profit as well as record revenue — $84 billion.
This is in no short measure due to the outstanding work by our global team members.
Since the onset of the pandemic, FedEx has been a driving force to move the world forward, keeping the world’s health care,
industrial, and at-home supply chains moving. From historic airlifts of personal protective equipment to daily — but equally
miraculous — contributions under the radar, the world has relied on this FedEx team.
FedEx Express and FedEx Logistics have collaborated to transport nearly 100 kilotons of personal protective equipment around
the world, and we are an integral part of the global vaccine supply chain, delivering vaccines and related supplies to more than
40 countries worldwide. In the first six months of distribution, we delivered approximately 187 million COVID-19 vaccine
doses throughout the United States, roughly half of the total vaccines distributed by the federal government.
Each of these statistics is the result of impeccable collaboration across operating companies with coordination support provided
by FedEx Services.
At FedEx Logistics, the FedEx Trade Networks team helped facilitate the transport of one of the first Pfizer-BioNTech vaccine
shipments from Germany to the U.S. for testing, and the FedEx Supply Chain team has been instrumental in helping with dock
operations where vaccine orders are filled. FedEx Custom Critical has trucked millions of vaccines from the distribution centers
to our FedEx Express hubs where the integrated air and ground network has delivered the vaccines to dosing centers for
administration with an average delivery time of less than 20 hours in the U.S.
This work is backed by our proprietary SenseAware ID monitoring technology, our Priority Alert service, and the ongoing
development of FedEx Surround — our new platform from FedEx Dataworks which provides unprecedented visibility and
predictability through machine learning that makes customer supply chains smarter.
And to the north in Canada, the FedEx network has been the spine of the vaccine rollout — moving tens of millions of vaccines
into and across Canada safely and securely. We are prepared to expand this mission to other countries and regions and use our
networks to deliver relief, prevention, and hope.
Meanwhile, FedEx Ground played a huge part in allowing people to stay safe by delivering record-setting volumes of goods to
people’s homes throughout a peak like no other.
Strategies for what’s next
This is our company’s finest hour and was made possible by our strategies, our networks, and our FedEx culture. We anticipated
accelerations across the e-commerce, international, and digital markets, and we were prepared when the pandemic accelerated these
trends. Of course, businesses globally continue to see challenges amid these developments including supply chain disruptions and
labor shortages. As a result, we’ve been taking bold actions across the enterprise to improve service for our customers and prepare
for sustained volume increases through continued investments in people, capacity, and technology to optimize our networks.
In the e-commerce market, we’ve been making intentional investments for years. Key decisions aimed at winning in this massive
and fast-growing market include moving to seven-day operations at FedEx Ground, insourcing SmartPost volume to become
FedEx Ground Economy, growing our large package network, offering the first FedEx-branded through-the-door service options
with FedEx Freight Direct, and accelerating the expansion of our retail convenience network including new hotel, convention
center, and OnCampus locations for FedEx Office.
During our 2020 stockholders meeting last September, we announced three new strategic operating principles as our blueprint for what’s next. Operate Collaboratively continues to fuel efforts like Last Mile Optimization and ongoing FedEx Freight support
of FedEx Express and FedEx Ground volume. We will continue to use the individual strengths of our operating companies to
improve efficiencies and ensure that we are putting the right package in the right network at the right cost to serve. These
strategies have been indispensable during the pandemic and in preparation for the future where we predict daily volumes of 172
million packages in the U.S. domestic parcel market in calendar year 2026.
Global volumes have accelerated in terms of both pallets and parcels. When the pandemic forced a dramatic decrease in passenger
flights — and the available air cargo space these planes provide — we had strategies in place to pick up the slack and keep the world’s
supply chains operating. With the same precision, we’re refining our operating plans for the return of commercial airline traffic and
underbelly capacity. And for e-commerce, we’re giving customers even more reasons to choose FedEx — including the addition of
attractive services like FedEx International Connect Plus — our day-definite e-commerce delivery service rolling out globally this fiscal year.
We’re confident of the value our TNT acquisition will create for FedEx in the future, and completion of our air network integration
in calendar year 2022 will bring the physical TNT network integration to a close providing the inflection point for long-term profit
improvement in Europe.
Digital innovation is the third trend we anticipated, and the pandemic also accelerated this shift. We’ve recognized the
importance of technology since our inception, and we’re continuing to prioritize IT modernization. Backed by our new strategic
operating principle, Innovate Digitally, FedEx is well positioned to capitalize on the promise of the data in our networks and the
mission of FedEx Dataworks to maximize that data through solutions like FedEx Surround.
We are focused on digital innovation and opportunities to serve the rapidly growing e-commerce market. Last year, we acquired
ShopRunner, a platform that shares our vision of creating digital solutions that help brands and merchants of all sizes compete in
e-commerce. This spring, we built on that momentum by announcing a multi-year collaboration with Adobe that will enable Adobe
Commerce merchants to integrate their online storefronts with ShopRunner. FedEx, ShopRunner, and Adobe have access to data and
intelligence at different stages of the e-commerce journey — from inspiration through delivery. By combining our unique strengths
and insights, we can create more reliable and seamless end-to-end e-commerce experiences for brands, merchants, and shoppers.
We’re also increasing our suite of autonomous same-day and specialty delivery devices recently announcing an agreement to test
Nuro’s next-generation autonomous delivery vehicle within select FedEx operations. And led by FedEx Office, we’re continuing
to test Roxo™, the FedEx SameDay Bot as the pandemic accelerates demand for contactless delivery. Roxo is now approved to
operate in more than a dozen states in the U.S., and our teams in Dubai and Japan are also running mapping and demo versions of
Roxo as we eye global opportunities in the future. The strong growth of e-commerce will continue to drive demand for drivers —
but by shouldering some of those costly and time-consuming last-mile deliveries, our portfolio of autonomous delivery solutions
will allow drivers to focus their efforts on high-value activities and high-volume delivery routes. As we continue to expand our
technology footprint, we expect to create more jobs to oversee production, management, sales, mobility, and operations.
Genuine leadership and a bright future
We know the future of our operations is tied to the future of our environment, and as detailed in our 2021 Environmental, Social, and Governance (ESG) Report, we’ve announced an ambitious goal to achieve carbon-neutral global operations by 2040
focusing on vehicle electrification, sustainable energy, and carbon sequestration. Importantly, FedEx is investing in pragmatic
solutions through a $100 million donation to help establish The Yale Center for Natural Carbon Capture which is tasked with
developing measurable carbon capture solutions and technology to take carbon out of the atmosphere. I am proud of the
genuine leadership role FedEx is taking to create a more sustainable future for our planet.
Our pride in the FedEx team and our performance for shareowners is greatly tempered, however, by the senseless murder of
eight of our own team members and injury of others in a horrific act of violence at a FedEx Ground facility in Indianapolis on 15
April 2021. Lingering sorrow among their families, friends, and colleagues throughout FedEx can never be erased. We are also
grateful to our team members who, in one of our company’s darkest moments, responded decisively and with compassion to
help. Thank you for embodying the very best of our company’s culture when it was needed most.
We are also very grateful to Henry Maier for more than 35 years of loyal and dedicated service to FedEx and RPS which we acquired in
1998. Henry’s insights have been instrumental in bringing FedEx Ground into the enormous, profitable operating company it is today.
Additionally, the Biden administration has recognized an exceptional talent in our former board member General Chris Inglis
who now serves as the United States’ first national cyber director. We benefited from Chris’s cybersecurity and information
technology expertise since he joined our board in 2015, and we wish him well in his critical new endeavor.
The expansive list of accomplishments detailed in this letter comes down to one thing: the future of FedEx is exceedingly
bright. We are where now meets next, and looking ahead to FY22 and beyond, we are the best-positioned company in a massive
market — with networks and capabilities that are very difficult to replicate. Most important, we’re backed by FedEx team
members who embody the Purple Promise — “I will make every FedEx experience outstanding”— every day.
FREDERICK W. SMITH
Chairman and CEO
See “Forward-Looking Statements” and “Risk Factors” sections of the fiscal 2021 FedEx Corporation Annual Report on
Form 10-K for a discussion of potential risks and uncertainties that could materially affect our future performance.