FedEx recently acquired TNT Express for €4.4 billion, which is the largest acquisition in the company’s history.
John C. Inglis, former Deputy Director of the National Security Agency, was welcomed to the company’s Board of Directors in November 2015.
The company is on track to reduce its carbon footprint by moving towards electric vehicles for its fleet in major metropolitan areas.  
On May 25, 2016, FedEx acquired TNT Express for $4.9 billion and cash acquired in the acquisition was a $280 million.
FedEx has 3 (or more) forms of services, mainly “FedEx Express”, “FedEx Freight” and “FedEx Ground”. FedEx Ground has most improvement among all, with 12% revenue increased from 2015. FedEx Freight has revenue increased of 8% in 2015. Lastly, FedEx Express’s revenue performance “were flat during 2015”, as quoted from annual report, which means close to no improvement.
Fuel expenses for FedEx decreased 36% in 2016, due to lower aircraft fuel prices
Despite a low economic growth, FedEx still manage to hit a higher revenues and profits
They have a significantly high amount of loss (2016: $1.5 billion and 2015: $2.2 billion)
The fuel from 2016 (2, 399) is a lot lower than 2015 (3,720)
Fed Ex very recently acquired one of their main competitors TNT Express. However, due to the current restructuring of TNT Express, it is not expected to contribute to earnings until 2018
Something I didn’t know. The express package business undergoes an increase in volume in the last two months of the year. However, for the Asia-to-US international business peak in October and November, slightly before the US peak. 
Almost an unbelievable fact: FedEx improved Operating Income by 70% from 2013 to 2015 while maintaining a flat revenue, the outcome of their profit improvement program.
Letter to Shareholder written by Frederick Smit, CEO of Fedex
Letter of assurance especially to shareholders that Fedex is in the good hands of Mr Frederick
Management Discussion & Analysis
Most relevant part to investors in my opinion, credible performance data that possibly affects their investment strategies and decisions 
2016’s performance statistics 
$50 billion in revenue
Hitting of profit improvement target 
9% increase in ground package volume 
Total Acquisitions 
2017’s predictions and trends 
Global trade to at 15 trillion 
Future plans of boosting vehicle fuel efficiency
Accountable Sustainability in footnote of letter 
Showcasing dedication to Corporate Social Responsibility 
Interesting to see CSR/Social accounting and the things they report
FedEx acquired TNT Express for €4.4 billion on schedule, and the integration processes are well underway at GENCO and FedEx CrossBorder (formerly Bongo International).
FedEx Express achieved its profit improvement goal outlined in FY13.
Strategic actions include general rate increases, higher pricing on larger packages and fuel surcharge adjustments.
FedEx hit one of its highest revenue in FY16 with a trend of increasing in revenue every year for FedEx despite the economic slowdown. 
Disruption of technology infrastructure adversely affects FedEx’s operation which may cause a loss for them.
Retained earnings became positive from negative. 
The first interesting bit of information that I notice is their mention of “$50+ billion” in revenue for the year of 2016 found on the second page of the report.
The second piece of information that stood out was the $2.4 trillion estimated value of e-commerce sales.
Lastly, their acquisition of TNT Express looks interesting in terms of the value it would deliver for FedEx and how it will propel them further in 2017.
Highlights of their financial year 
Letter from the Chairman which says that the company has delivered what they said they would do, with an intention to please shareholders. 
Boasts about the company’s achievements 
TNT acquisition (6.9 Billion euro- revenue of 2015) 
Fuel Efficiency attained five years ahead of plan (137 million gallons of fuel saved since 08’) 
Free trade has improved world market scope and is estimated to be around $15 trillion (FedEx supports various policies in this respect) 
The e-commerce market is very profitable and is expanding at a very fast rate. There is an estimated increase of 26% increase by 2018 from 2016.
FedEx is moving towards sustainability goals and are becoming more environmentally friendly
FedEx is an imperative company in removing barriers to world trade by efficiently delivering goods around the world.
I’m surprised that FedEx just made the largest acquisition in its history; given how big the company is, I’d thought that they would have acquired every company that would benefit their bottom line by now.
From FY14 to FY16, Fedex repurchased in excess of 63 million shares from shareholders, spending $8.8 billion to do so. I wonder if they did so to drive the share price up, although that is a pretty costly way to do so. Also of note is how dividends increased by at least 25% annually during the same period; perhaps this is a sign of FedEx reaching maturity as a blue-chip (I’m assuming the company either already qualifies to be one or is about to).
The company seems to take sustainability very seriously, as seen from its focus on increasing fuel economy and doubling its fleet of alternative fuel vehicles.
It was mentioned that payment for TNT Express acquisition was financed by earning from previous year and debt issuance. Looking at the consolidated statement of cash flow (pg 51), we can see that FedEx has an increase of 68% cash utilization for investment while the debt issuance increased by more than 160%. It is interesting to see how FedEx has been taking more liability while investing vigorously between the two period. 
It is also interesting to see extreme fluctuation of the revenues and income for some of the figure e.g.: for FedEx Express Segment, the revenues decreased by more than 700% while income increased by nearly 500% between the two period. The footnote explaining additional expense of $276 million does not fully explain the difference in revenue and income of this segment. Although it does further explain increase of 6% of salary expense and increase of 13% in maintenance expense for FedEx Express segment at other section (pg 17). 
The report presented an estimation of comparison of FedEx against its competitors (DHL and UPS) by ranking (as seen below). Interestingly, FedEx was not ranked by itself but taken as one entity with a newly acquired company, TNT Express. While it is true that the acquisition was deemed positively by the industry (New York Times, 2015 ), there is always uncertainty involved, especially with competition from DHL and UPS. Furthermore, the effect of acquisition will need time (few years) to be fully realized before both company can be analyzed as one. Not to mention the source of data is internal party (FedEx Market Development) where there could be biasness. 
This presentation may be misleading to potential or current investors. 
Brand value, trade mark, franchise rights and location premium are determined to have finite useful lives.
Provision for reinstatement costs includes the estimated cost of demolishing and removing all the leasehold improvements made by the Group to the premises. The premises shall be reinstated to the condition set up in the lease agreements upon the expiration of the lease agreements. 
The amounts due from and loan from non-controlling shareholders of subsidiaries are to be settled in cash, unsecured, non-interest bearing and repayable on demand. 
A financial overview of revenue, revenue contribution and EBITDA margin of FY2014 and FY2015
The distribution of outlets by geography (Malaysia, Hong Kong, Thailand, Taiwan, Rest of Asia, Singapore, Mainland China)
Remuneration of Directors and Key Management Personnel
Global trade market increased from $50billion to $15 trillion in 50 years
TNT acquisition lowered operating costs in Europe
Increase in automated hubs/station to match E-commerce growth 
Fedex’s operating income in 2017 would most likely be pressurized by network expansion plans and other operation costs. Such expansion plans are needed to cater to the boom in Fedex’s e-commerce sales which has received an overwhelming response. These large volumes of e-commerce orders are not able to be processed under Fedex’s current network system.
Despite lower revenues in 2016, Fedex’s operating income and operating margin increased mostly due to profit improvement program initiatives which improved revenue quality, positive net impact of fuel and lower international expenses due to currency exchange rates. 
Replacement of old aircrafts with new modernized models such as B777F and B767F aircrafts which are more fuel-efficient. Such investments would incur huge costs to the company in the short-run, but necessary to enjoy significant operating savings in the long-run, leading to increased operating income. 
FedEx acquired TNT Express to broaden global portfolio and give itself a global competitive advantage.
FedEx recognizes the explosive trend of e-commerce (in terms of volume of e-commerce shipments) and are taking steps to ensure that its network capacity can match the said volume.
Mentioned in the reports are points on tariffs and free trade. From here, we can see that regulations may be barriers or catalysts for trade and can affect entities operating in different parts of the world. There is currently a $15 trillion global trade market from $50 billion 50 years ago.
There are four FedEx transportation networks: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services 
FedEx aims to expand their network capacity to match the growth of e-commerce.
FedEx is dedicated to environmentally friendly operations. In FY15, they doubled the number of alternative fuel vehicles. FedEx saved 137 million gallons of fuel since 2008 due to their strategy: Reduce (optimize routes), Replace (fuel-efficient models), Revolutionize (electric cars).
FedEx Corporation has a page dedicated for their largest acquisition, TNT Express. Furthermore, they pointed out the revenue generated by it and market comparison with other air export service providers.
They also talked about Fuel Efficiency in an effort to reduce their carbon footprint and to be more sustainable (the corporate social responsibility component).
Another point that they mentioned in their report is about trade, and the growth of a global supply chain affected people around the world positively.
FedEx Express’ operating incomes and margins improved but revenue decreased, as a result of lowering expense growth. This could be worrying to investors as oil prices are projected to rise by many sources (OPEC’s collusion to reduce production, increasing field exploration costs of unconventional sources and the drying up of the US supply glut) and this could become a concern if revenue is not increased together with decreases in expenses. Also, operating income benefited from two additional operating days in 2016, which makes it questionable if there was an increase in incomes at all. (of course, this could be offset by performance improvements across other segments of FedEx’s portfolio of services but the problem still remains for the group to deal with)
A significant portion of FedEx’s capital expenditure, detailed under Liquidity Outlook, was set aside for purchase of newer aircrafts. This is interesting considering the currently low jet fuel costs which are driving many commercial airlines to delay or cancel new orders because the low costs increase their margins so they’re able to profit off of older, less fuel-efficient aircraft. 
Fedex practices self-insurance accruals, which is interesting because they park a large percentage of it under current liabilities. From what I understand self-insurance sounds like setting aside an amount of money in case of a rainy day, there is no risk-pooling involved. In that case it seems like an artificial inflation of liability amounts, which runs counter to what shareholders would look out for. 
FedEx has decided to employ more people in 2016 despite rising operating costs under salaries and employment benefits of which the latter increased from 35.5 % of company revenue in 2014 to 36.9 % of company revenue in 2016. I thought perhaps like most companies, they would choose retrenchment or some form of reshuffling to keep operating costs low.
How UK’s Brexit referendum has a negative impact on their business as it was a cause for global uncertainty and instability resulting in lower volume of packaged delivery. As it was my first time reading a company’s annual report, it is interesting to see how they took into consideration the currency of their report, in other words, how up to date their report is as they have included recent and current affairs.
I thought it was interesting to see how transparent FedEx was in their reports compared to the Groupon case shared in class. (where Groupon introduced their own terms combined with their shady accounting) FedEx has also revealed losses from litigation cases/regulations throughout their report which seems quite transparent to me. I thought perhaps companies would choose not disclose this kind of information so explicitly to protect their own reputation. (I’m not sure if this kind of disclosure is required by the law)
From FY14 through FY16, FedEx returned more than $8.8 billion to shareowners through its repurchase of more than 63 billion shares.
FedEx acquire TNT Express to tap into the European markets which helped to elevates FedEx in air export market ranking. This acquisitions help FedEx to improve its ranking in their air export market. In this sense, I personally believe this acquisition will aid in increasing their share values. 
FedEx, as a large corporate, engaged in CSR in its development for greater profits by tapping on hybrid and electric vehicles. 
FedEx acknowledges the business opportunity yet to be expanded on in the e-commerce sector.
FedEx reassures its shareholders that the acquisition of TNT Express was indeed a good move and provides statistics to back up its statement.
An estimate value of $2.4 trillion dollars was given to the e-commerce sector sales. It is a very huge sum!
E-Commerce: Investing In Growth  
TNT Express acquisition: Strategic integration
Fuel Efficiency
Fedex has acquired the Dutch delivery company TNT Express and aims to integrate both companies.
Fedex managed to achieve fuel efficiency through the 3Rs – Reduce, Replace, Revolutionize
Fedex delivers 95% of all e-commerce orders in the United States.
TNT acquisition 
Fuel Efficiency attained five years ahead of plan 
Free trade has improved world market scope and is estimated to be around $15 trillion 
Letter to the shareholders
Overview of financial section 
Organization