Samsung Electronics today announced its earnings guidance for the second quarter of 2022.
Consolidated Sales: Approximately 77 trillion Korean won
Consolidated Operating Profit: Approximately 14.0 trillion Korean won
The above estimates are based on K-IFRS. Please note that Korean disclosure regulations do not allow earnings estimates to be offered as a range. To comply with such regulations, the above figures represent the median of the estimate ranges provided below.
Sales: 76 ~ 78 trillion Korean won
Operating Profit: 13.9 ~ 14.1 trillion Korean won
※ 2022 1Q and 2021 2Q consolidated figures based on K-IFRS are as follows
Today, the largest online payment company in Finland, Paytrail, and Mastercard announce that their collaboration has reached new heights as they’re now enabling more than one million open banking payments every month, led by European open banking leader Aiia, a Mastercard company. Since 2019, Paytrail and Aiia have been collaborating to accelerate open banking powered payments in the eCommerce checkout flow.
Powered by Mastercard’s open banking platform, Paytrail enables eCommerce for more than 20,000 merchants and online shoppers, providing greater choice with new payment options and providing a more hassle-free online checkout experience. Unlike more traditional payment options, open banking allows anyone with a bank account to initiate swift and secure digital payments which arrive as soon as technically possible and in some countries almost immediately to a retailer’s account. Compared to other methods, this open banking solution requires fewer steps to complete a payment, as the payment is initiated directly from the bank without the need to manually fill in payment details or switch between applications or interfaces. Through this collaboration, merchants can also offer a solution that is fully integrated in the checkout environment and aligns to Paytrail’s and Mastercard’s shared vision of continuously increasing convenience for consumers and enhancing security.
Commenting on the collaboration, Joni Rautanen, Chief Operating Officer of Paytrail, said: “We’ve been working with Aiia for some time and we’re happy to see the results of the collaboration today. Without the corporation, we would have had to build the interface integration with the banks ourselves and it would have been a very challenging task. The simple integration with Aiia has made it possible for us to get the solution up and running fast to offer thousands of merchants the opportunity to leverage open banking powered payments.”
Katharina Luschnik, Vice President, Product Sales of Aiia, a Mastercard company, says:
“Open banking eCommerce payments are convenient for consumers as they enable a faster checkout process, paying through an interface that the consumer trusts with their bank. The flow itself holds embedded SCA (Strong Customer Authentication) and therefore reduces steps in successfully getting a transaction through when shopping online. Paytrail is a perfect example of a payment service provider that is leading the change for a best-in-class online shopping experience and fitting their solution towards customer demands. We’re thrilled to empower Paytrail on their future journey towards increasing convenience in the eCommerce landscape”
Holidays by flydubai is providing passengers with incredible last-minute deals and the chance to explore its summer destinations this Eid al-Adha.
Passengers can enjoy special holiday packages including flights and hotels to selected destinations around the network such as Dubrovnik, Izmir and Pisa. Eid packages are available for booking by 10 July for travel between 08 July and 17 July.
Dubrovnik from AED 2,899 per person
Dubrovnik’s ancient architecture and glistening limestone streets have become particularly famous as a backdrop for popular film productions. This Croatian city also provides beach lovers with a gateway to the Adriatic coast.
Eid packages to Dubrovnik start from AED 2,899 per person including return flights and a hotel stay. All prices are based on two adults sharing a room.
Izmir from AED 2,399 per person
As Turkey’s third-largest city, Izmir is an ideal destination for travellers wishing to unwind by the Aegean coast. Filled with stunning beaches, mesmerising coastal villages and archaeological sites, this Turkish gem has something for everyone.
Eid packages to Izmir start from AED 2,399 including return flights and a hotel stay. All prices are based on two adults sharing a room.
Pisa from AED 3,299 per person
Situated in the Tuscany region, the Italian city of Pisa has become a must-see due to its famous Leaning Tower.
The region in Central Italy is also home to incredible works of art and architecture from the Renaissance including Michelangelo’s “David” statue and Florence Cathedral.
Eid packages to Pisa start from AED 3,299 including return flights and a hotel stay. All prices are based on two adults sharing a room.
Travel requirements
Passengers are required to make sure that they are up to date with the regulations for their whole journey, and follow the guidance issued by the authorities and the airline. They can visit the COVID-19 information hub on flydubai.com for more information.
The Santa Fe Ministry of Security has awarded Motorola Solutions (NYSE: MSI) to deliver a state-of-the-art, integrated end-to-end emergency management system for multi-agency coordination and to shorten response times to emergency calls from the public.
Comprising advanced software, voice communication and video security technologies, the new integrated system, called Control, Attention and Dispatch System for Police Emergencies (SiCAD), will provide 17,500 police officers of the Province of Santa Fe to be fully coordinated and connected across 10 cities including Rafaela, Reconquista, Rosario, City of Santa Fe and Venado Tuerto.
“Modernizing our 911 emergency system is an important step in further reducing our crime rate and achieving our community’s goal of building a safer environment,” said Omar Perotti, Santa Fe Province Governor. “Our police officers rely on clear real-time communication to keep people safe and we are confident that the new deployment will enable faster and more informed decisions.”
Motorola Solutions will manage the integration of all technologies within the police agency’s command and control room center, creating a single, comprehensive real-time viewpoint of incidents, collating data from multiple sources including 911 calls, emergency dispatch functions, video analytics, evidence and community inputs.
Included within the new emergency management system are Motorola Solutions’ DIMETRA TETRA Consoles, which provide always-on digital radio voice communication and constant connection between police officers in the field and the command and control center. As the ‘eyes and ears’ over any operation, command and control center workers can dispatch additional resources wherever they are needed for quick and effective emergency response.
Police officers can also establish interoperable communication instantly and over any network or device, including communication between radios and smartphones with Motorola Solutions’ WAVE PTX On Premises.
Motorola Solutions’ VB400 body-worn cameras provide objective evidence when an incident occurs and increase the transparency of interactions between officers and citizens. The footage is securely uploaded viaVideoManager evidence management software and integrated into the new emergency system.
“Motorola Solutions’ global experience in deploying a unified ecosystem of technologies enables us to package together the essential solutions that public safety agencies depend on every day. Used together, these technologies help to increase incident awareness, visibility across entire operations and safety for every frontline users as well as citizens,” said Henry Bateson, territory director South of Latin America, Motorola Solutions.
About Motorola Solutions Motorola Solutions is a global leader in public safety and enterprise security. Our solutions in land mobile radio communications, video security & access control and command center software, bolstered by managed & support services, create the most integrated technology ecosystem to make communities safer and help businesses stay productive and secure. At Motorola Solutions, we’re ushering in a new era in public safety and security. Learn more atwww.motorolasolutions.com.
HIROSHIMA, Japan — Mazda Motor Corporation announced that the Mazda 787B, symbol of Mazda’s “never stop challenging” spirit, will do demonstration laps1 at Le Mans Classic 2022 to be held from June 30 to July 3.
1991 Le Mans winner, Mazda 787B, at Le Mans drivers’ parade on June 10, 2011
Equipped with a four-rotor rotary engine, the Mazda 787B became the first Japanese automobile to win the 24 Hours of Le Mans endurance race in 1991. For the first time in almost a decade, spectators will be able to witness the thrilling and distinctive sound of the Mazda 787B’s rotary engine at Le Mans Classic 2022. The last two opportunities to see the legendary vehicle being at the 90th anniversary of the 24 hours of Le Mans in 2013 and the 20th anniversary of Mazda’s victory at Le Mans in 2011.
The Mazda 787B was due to run at Le Mans Classic last year to mark the 30th anniversary of its victory, unfortunately the event itself was postponed to this year due to Covid-19.
Thanks to support from model car company, Spark, 29-time competitor in the 24 Hours of Le Mans, Yojiro Terada dubbed as “Mr. Le Mans” in Japan, will drive the Mazda 787B during demonstration laps on July 1 and 2 when Group C racing will be held.
Le Mans Classic is a very popular event in which numerous famed racing cars that have previously competed in the 24 Hours of Le Mans2 gather and make an appearance every two years on the Circuit de la Sarthe. In Group C, entry vehicles are divided by historical period and compete in 60-minute races. This year’s entries will include cars that have cemented their names in history such as the Toyota Tom’s 85C, the Porche 962, the Jaguar XJR and the Peugeot 905.
If you feel the urge to seek “revenge” and travel after the pandemic kept so many stationary and separate for so long, you’re not alone. More than half of respondents to a recent travel survey said they want to book a once-in-a-lifetime vacation this year. It reflects changes to travel protocol and restrictions allowing people to travel more freely, however, concerns about inflation and rising costs are giving some people pause.
Travel expert Oneika Raymond travels the world with her family.
Travel expert Oneika Raymond, who has visited more than 100 countries and has been travelling since 2021, says that people itching to reconnect with loved ones can get away—they just need to be more strategic about managing expenses.
After being stuck at home during the pandemic, she ditched her New York City apartment to experience the world with her husband and their young daughter, learning ways to stay cost-conscious on the go. She’s visited Colombia, Italy, Germany, and more, sometimes meeting up with friends and having extended family join her.
“It’s very important to be conscientious of what you and others are spending,” she said, suggesting using bill-splitting tools or apps like PayPal to conduct transactions and track and split expenses. Planning ahead, researching deals and being upfront with fellow travelers about your budget also keeps vacations affordable – while avoiding any awkward discussions about money later on. Whether you’re getting away with a partner, immediate family, or other loved ones, Oneika has tips for your summer trips.
Planning Your Trip
Where, when, and how you plan to travel are the foremost ways to save money. Being flexible about the destination but firm on the budget is key, as is communicating with fellow travelers in advance about logistics, including how you’ll split expenses.
“A lot of issues stem from mismatched expectations,” said Oneika. “Have an honest discussion from the jump about what your expectations are for the trip and what your budget is. It will help avoid a lot of friction along the way.” For example, Oneika doesn’t drink alcohol, so she makes clear she won’t share those costs.
Plan for and communicate about where you prefer to save or splurge so you can make intentional choices throughout your trip without getting blowback from others.
Choose trip destinations based on the most affordable airfare and activities – you might be surprised to find a fun, new location. Being flexible about travel dates could yield more savings, especially for airfare and lodging.
Earn points on your bookings and travel costs, then spend those rewards—to update your wardrobe, suitcase, or have some nice meals—using a service like Pay with Rewards.
If you need an extended schedule that works for you to pay for larger purchases, such as flights or accommodations, Oneika recommends options like Pay in 4, which let you conveniently break purchases into four interest-free payments.
During Your Trip
Oneika budgets closely to keep travel affordable.
Group trips provide an opportunity to take advantage of group offerings and logistics, but you’ll need to track shared expenses so they’re accurately settled. For example, when dining with friends, Oneika has found that she can reimburse PayPal friends who handled the bill. “I can go in and see what I owe, or keep track of my spending very easily, and have alerts on my phone or computer,” she said. Plus, with PayPal being available around the globe, it makes it easy for friends and family to settle up when you’re travelling.
Assign different group members to pay certain expenses upfront—such as someone who books a tour and another who books shared accommodations—then settle up after.
Book larger vans, shuttles, or rental cars and split the cost instead of paying individually for taxis.
Ask for group rates for tours where possible to see and experience more together.
Keep careful track your transactions, what others owe you, and what you owe, preferably somewhere visible to everyone.
Don’t carry too much cash, which can get lost or stolen. Instead, send or request payments digitally via reliable payment services to securely split costs.
After Your Trip
Keep your post-vacation glow, and help fellow travelers do the same, by settling any outstanding payments owed. PayPal is an easy, safe, and reliable way to split payments because of features like simple, quick navigation and fraud monitoring protection.
The best route toward cost-conscious vacations is to be open-minded about all the ways to enjoy destinations. After all, revenge travel is all about creating distance from a period where no one could get out and about. And wherever you go, with your family and friends “you’re able to bring home to you,” Oneika said.
Today’s investors meeting outlines strategic roadmap to deliver for customers, stockholders, and team members
Adjusted consolidated operating income targeted to increase $3.0–$4.5 billion in fiscal 2025 vs. fiscal 2022
Fiscal 2025 ratio of capital expenditures to revenue expected to be at or below 6.5%
Adjusted earnings per share (EPS) expected to grow between 14–19% CAGR through fiscal 2025
Targeting 18–22% annualized Total Shareholder Return (TSR) through fiscal 2025
MEMPHIS, Tenn., June 29, 2022 – FedEx Corp. (NYSE: FDX) is hosting an investors meeting today where President and Chief Executive Officer Raj Subramaniam and the FedEx leadership team will present a strategic plan to deliver more value for customers, stockholders, and team members. FedEx will also outline its fiscal 2025 financial targets.
“The FedEx team and its unparalleled network have been connecting the world and creating opportunities since our founding,” Subramaniam said. “As we enter the next phase of FedEx, we will unlock value from this foundation to deliver outstanding returns to all of our stakeholders. Our strategy is focused on driving yields, expanding margins, and elevating returns through profitable growth and capital efficiency. We have tremendous momentum and a committed leadership team focused on delivering today, while innovating for tomorrow.”
Fiscal 2025 Financial Targets
FedEx is targeting to deliver 18–22% annualized TSR through fiscal 2025 based upon these balanced financial goals for fiscal 2025:
4–6% compound annual revenue growth through fiscal 2025
10% adjusted consolidated operating margin, driven by
11–12% FedEx Ground adjusted operating margin
8–9% FedEx Express adjusted operating margin
20–22% FedEx Freight adjusted operating margin
Adjusted dividend payout ratio of at least 25%
Ratio of capital expenditures to revenue equal to or less than 6.5% and an increase of 200 basis points in FedEx’s return on invested capital (ROIC) compared to fiscal 2022
Fiscal 2025 adjusted consolidated operating income improvement of $3.0–$4.5 billion compared to fiscal 2022 adjusted consolidated operating income
Compound annual growth rate for adjusted EPS of 14–19% through fiscal 2025.
Deliver Today, Innovate for Tomorrow Strategy
The FedEx executive leadership team will discuss its strategy and detailed plans to Deliver Today, Innovate for Tomorrow during today’s investors day. The plans will guide the company’s short- and long-term priorities to maximize value for customers, stockholders, and team members.
During today’s presentations, the leadership team will focus on how FedEx is Delivering Today by:
Delivering revenue quality with a differentiated value proposition, targeting high-value customer segments
Expanding margins through more efficient networks
Increasing stockholder returns through profitable growth, lowered capital intensity, and increased ROIC focus
The leadership team will also outline how FedEx is Innovating for Tomorrow by:
Enabling intelligent supply chains by leveraging its technology, data, and digital capabilities
Leading through its continued commitment to sustainability
Reinventing work and empowering people
Speakers will include Subramaniam; Mike Lenz, executive vice president and chief financial officer; Brie Carere, executive vice president and chief customer officer; and other key members of the FedEx executive leadership team.
Webcast and Materials
The Investors Meeting will be streamed beginning at 8:30 a.m. CDT on June 29, 2022 at investors.fedex.com. Individuals may view the presentation and download the materials presented during the meeting. This release contains only a short summary of the information to be presented and should be read in conjunction with the management presentations and other materials, including the appendix of non-GAAP financial measures, made available on the Investor Relations website.
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $94 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively, and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its 550,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.
Additional information is contained in the company’s annual report on Form 10-K, Form 10-Qs, Form 8-Ks, and Statistical Books. These materials are available on the company’s website at investors.fedex.com. The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our Securities and Exchange Commission (SEC) filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media, and others interested in the company to visit this website from time to time, as information is updated and new information is posted.
Certain statements in this press release may be considered forward-looking statements, such as statements regarding future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such targets, strategies, and statements. Forward-looking statements include those preceded by, followed by, or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” or similar expressions. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; our ability to achieve our fiscal 2025 financial performance goals; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. Postal Service, including strategic changes to its operations to reduce its reliance on the air network of FedEx Express; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflict between Russia and Ukraine; our ability to match capacity to shifting volume levels; the effect of intense competition; an increase in self-insurance accruals and expenses; our ability to effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions and other strategic transactions; the future rate of e-commerce growth and our ability to successfully expand our e-commerce services portfolio; the timeline for recovery of passenger airline cargo capacity; evolving or new U.S. domestic or international laws and government regulations, policies, and actions; future guidance, regulations, interpretations, challenges, or judicial decisions related to our tax positions; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers providing services on their behalf; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; our ability to achieve our goal of carbon-neutral operations by 2040; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
The financial targets and guidance included in this press release reflect FedEx’s expectations for fiscal years 2023 through 2025 and are provided on a non-GAAP basis as FedEx cannot predict certain items which are included in reported GAAP results. See “Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures” below for additional information on non-GAAP financial measures and reconciliations of non-GAAP financial measures to GAAP financial measures. The financial targets and outlook provided herein assume the company’s current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, and no additional adverse geopolitical developments.
Media Contact: Jenny Robertson 901-434-4829 Investor Contact: Mickey Foster 901-818-7468
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
Fiscal 2022 and 2021 Financial Measures
FedEx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our fiscal 2022 and 2021 consolidated adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted earnings per share (“EPS”), fiscal 2022 consolidated return on invested capital (“ROIC”), and fiscal 2022 adjusted dividend payout ratio.
Adjusted Operating Income and Margin, Net Income, and Diluted EPS
Our fiscal 2022 and 2021 consolidated operating income and margin, net income, and diluted EPS have been adjusted to exclude, as applicable:
Mark-to-market (“MTM”) retirement plans accounting adjustments in fiscal 2022 and 2021;
Business realignment costs in fiscal 2022 and 2021;
Costs related to a FedEx Ground legal matter in fiscal 2022;
TNT Express integration expenses incurred in fiscal 2022 and 2021; and
Loss on debt extinguishment in fiscal 2021.
We have provided these non-GAAP financial measures for the same reasons that were outlined in our fourth quarter fiscal 2022 earnings release issued on June 23, 2022.
Return on Invested Capital and Adjusted Dividend Payout Ratio
Our consolidated ROIC for fiscal 2022 is calculated, in part, using non-GAAP financial measures. Adjusted operating income is included in the numerator, as we believe it is most indicative of our core operating performance. We add back to adjusted operating income interest on average operating leases, which we believe improves the comparability of ROIC between FedEx and other companies with different capital structures, and subtract adjusted current income taxes calculated using our adjusted current income tax rate in order to determine the after-tax adjusted return earned in the current period. Additionally, one input of the denominator is average net working capital as of May 31, 2022 and May 31, 2021, adjusted to exclude (i) average cash and cash equivalents in excess of those required to support daily business operations and cash equivalents held in restricted offshore accounts from average current assets, as these items do not contribute to the generation of operating returns, and (ii) the current portion of long-term debt and operating lease liabilities from average current liabilities, as we consider these items part of total invested capital used to support the generation of operating returns. We have provided reconciliations of our 2022 adjusted current income tax rate to our 2022 current income tax rate and of our average adjusted total current assets and total current liabilities as of May 31, 2022 and May 31, 2021 to our average total current assets and total current liabilities as of May 31, 2022 and May 31, 2021 under “Full-Year Fiscal 2022—Return on Invested Capital” below.
We believe ROIC is a meaningful measure of how effectively we are deploying our key assets and using capital to generate profits. Numerous methods exist for calculating ROIC. Accordingly, the method used by FedEx may differ from the methods used by other companies. We encourage you to understand the methods used by another company to calculate ROIC before comparing its ROIC to ours.
Our adjusted dividend payout ratio for fiscal 2022 is calculated as cash dividends paid on our common stock in fiscal 2022 divided by fiscal 2021 adjusted consolidated net income. We calculate our adjusted dividend payout ratio, in part, using a non-GAAP financial measure that we believe excludes items that may not be indicative of, or are unrelated to, our core operating performance. We believe our adjusted dividend payout ratio is a meaningful measure of how effectively we have returned profits to holders of our common stock.
Fiscal 2023 and 2025 Forecasts
We have also provided forecasts for the following metrics for fiscal 2025: consolidated adjusted operating income and adjusted operating margin, adjusted net income, and adjusted EPS; adjusted FedEx Ground, FedEx Express, and FedEx Freight segment operating margins; adjusted dividend payout ratio; and ROIC. Additionally, we have provided an adjusted dividend payout ratio forecast for fiscal 2023.
Other than our forecasted adjusted dividend payout ratio for fiscal 2023, we do not provide a reconciliation of these non-GAAP financial forecasts to the most directly comparable GAAP forecasts because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. For example, we are unable to predict the amount of the fiscal 2025 MTM retirement plans accounting adjustments, as they are significantly impacted by changes in interest rates and the financial markets. Additionally, we may incur costs during fiscal 2023, 2024, and 2025 related to business optimization initiatives as well as other costs that are unrelated to our core operating performance and/or extraordinary in nature. We are currently unable to forecast the amount and timing of these additional costs. These items are inherently uncertain and depend on various factors, many of which are beyond our control, and as such, any associated estimate and its impact on our GAAP financial measures could vary materially.
Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our fiscal 2022 and 2021 non-GAAP financial measures and fiscal 2023 forecasted adjusted dividend payout ratio to the most directly comparable GAAP measures.
Full-Year Fiscal 2022
Operating
Income
Net
Diluted Earnings
Dollars in millions, except EPS
Income
Margin
Taxes1
Income2
Per Share
GAAP measure
$
6,245
6.7
%
$
1,070
$
3,826
$
14.33
MTM retirement plans accounting adjustments3
—
—
379
1,199
4.49
Business realignment costs4
278
0.3
%
64
214
0.80
FedEx Ground legal matter5
210
0.2
%
50
160
0.60
TNT Express integration expenses6
132
0.1
%
29
103
0.39
Non-GAAP measure
$
6,865
7.3
%
$
1,592
$
5,502
$
20.61
Return on Invested Capital
Dollars in millions
Numerator
Adjusted operating income (non-GAAP)
$
6,865
Interest on average operating leases7
463
Adjusted operating income with add-back forinterest on average operating leases
$
7,328
Adjusted current income taxes (non-GAAP)8
(870)
Lease-adjusted after-tax net operating income
$
6,458
Denominator9
Average adjusted net working capital10 (non-GAAP)
$
3,714
Average net property and equipment
36,922
Average operating lease right-of-use assets, net
15,998
Average goodwill
6,768
Average other assets, net of other liabilities
3,393
Average invested capital
$
66,795
Return on invested capital
9.7%
Adjusted Dividend Payout Ratio
Dollars in millions
Cash dividends paid in fiscal 2022
$
793
Fiscal 2021 net income (GAAP)
5,231
Dividend payout ratio (GAAP)
15%
Cash dividends paid in fiscal 2022
$
793
Fiscal 2021 adjusted net income (non-GAAP)
4,885
Adjusted dividend payout ratio (non-GAAP)
16%
Full-Year Fiscal 2021
Operating
Income
Net
Diluted Earnings
Dollars in millions, except EPS
Income
Margin
Taxes1
Income2
Per Share11
GAAP measure
$
5,857
7.0
%
$
1,443
$
5,231
$
19.45
MTM retirement plans accounting adjustments3
—
—
(281)
(895)
(3.33)
Loss on debt extinguishment
—
—
96
297
1.11
TNT Express integration expenses6
210
0.3
%
48
162
0.60
Business realignment costs5
116
0.1
%
26
90
0.33
Non-GAAP measure
$
6,183
7.4
%
$
1,332
$
4,885
$
18.17
Fiscal 2023 Adjusted Dividend Payout Ratio Forecast
Dollars in millions
Cash dividends expected to be paid in fiscal 2023
$
1,175
Fiscal 2022 net income (GAAP)
3,826
Dividend payout ratio (GAAP)
31%
Cash dividends expected to be paid in fiscal 2023
$
1,175
Fiscal 2022 adjusted net income (non-GAAP)
5,502
Adjusted dividend payout ratio (non-GAAP)
21%
Notes:
1 – Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
2 – Effect of “total other (expense) income” on net income amount not shown.
3 – Reflects the year-end adjustment to the valuation of the company’s defined benefit pension and other postretirement plans. For fiscal 2022, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with the termination of a TNT Express European pension plan and a curtailment charge related to the U.S. FedEx Freight pension plan. For fiscal 2021, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with amending a TNT Express European pension plan to harmonize retirement benefits.
4 – Business realignment costs were recognized at FedEx Express.
5 – These charges were recognized at FedEx Corporation.
6 – These expenses were recognized at FedEx Corporation and FedEx Express.
7 – Represents the hypothetical interest expense implied within rentals expenses the company would incur if property under operating leases were owned or accounted for as finance leases. Estimated using the weighted-average discount rate for operating leases, which was 2.85% for 2022, applied to the total of the average current and long-term operating lease liabilities as of May 31, 2022 and May 31, 2021, respectively. See “Fiscal 2022 and 2021 Financial Measures—Return on Invested Capital and Adjusted Dividend Payout Ratio” above for additional information.
8 – Calculated as 2022 adjusted operating income with the add-back for interest on average operating leases multiplied by the 2022 adjusted current income tax rate of 11.9%. Our current income tax rate for 2022 of 15.3% is calculated by dividing our current tax provision by income before income taxes, and has been adjusted as follows:
Current income tax rate (GAAP)
15.3%
MTM retirement plans accounting adjustments
(3.7)%
Business realignment costs
0.5%
FedEx Ground legal matter
(0.4)%
TNT Express integration expenses
0.2%
Adjusted current income tax rate (non-GAAP)
11.9%
See “Fiscal 2022 and 2021 Financial Measures—Return on Invested Capital and Adjusted Dividend Payout Ratio” above for additional information.
9 – Other than average adjusted net working capital, amounts are averages of the applicable line items included in FedEx’s condensed consolidated balance sheets for the fiscal years ended May 31, 2022 and May 31, 2021, respectively.
10 – Calculated as our average total current assets for the years ended May 31, 2022 and May 31, 2021, adjusted as follows, minus our average total current liabilities for the years ended May 31, 2022 and May 31, 2021, adjusted as follows:
Dollars in millions
Average total current assets (GAAP)
$
20,473
Average cash and cash equivalents in excess ofthose required to support daily business operationsand those held in restricted offshore accounts
(5,232)
Adjusted average total current assets (non-GAAP)
$
15,241
Average total current liabilities (GAAP)
$
13,967
Average current portion of long-term debt
(114)
Average current portion of operating lease liabilities
(2,326)
Adjusted average total current liabilities (non-GAAP)
$
11,527
Average adjusted net working capital (non-GAAP)
$
3,714
See “Fiscal 2022 and 2021 Financial Measures—Return on Invested Capital and Adjusted Dividend Payout Ratio” above for additional information.
ims to create 3,000 additional jobs for UAE nationals in its supply chain by 2025
ADNOC and NAFIS will collaborate to connect UAE talent with leading corporations in ADNOC’s supply chain
ADNOC continues to champion UAE Talent and is driving recruitment in the Private Sector through its comprehensive In-Country Value Program
New agreement builds on ADNOC’s extensive existing commitment and will accelerate the identification of future opportunities in its supply chain
Abu Dhabi – June 27, 2022: Abu Dhabi National Oil Company (ADNOC) announced today that it has signed a strategic collaboration agreement with the Emirati Talent Competitiveness Council (NAFIS) to accelerate recruitment of UAE talent in the private sector, with the aim to create 3,000 additional jobs for UAE nationals in its supply chain by 2025.
Through this agreement, ADNOC will step up its efforts to ensure that companies in its supply chain are making use of the programs and incentives offered by NAFIS for hiring local talent. ADNOC will also contribute to raising the competitiveness of UAE nationals, by encouraging them to take advantage of the opportunities provided by the NAFIS programme.
The signing of the agreement was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, as well as His Excellency Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation. The agreement was signed by His Excellency Ghannam Al Mazrouei, Secretary General of NAFIS and Mr Abdulmunim Al Kindi, Executive Director of People, Technology and Corporate Services in ADNOC.
H.E. Dr. Sultan Al Jaber said: “Through the creation of the NAFIS programme, the UAE leadership has demonstrated its strong commitment to unlocking opportunities for local talent to work and succeed in the private sector. Inspired by this vision, ADNOC is fully committed to working with NAFIS and private corporations in our supply chain to facilitate and promote the matching of UAE talent with private sector opportunities. I warmly welcome this agreement, which is closely aligned to our broader efforts to support the expansion of a dynamic industral sector in the UAE, and create new high quality job opportunities.”
As the UAE prepares for its next 50 years, NAFIS will support a sustainable and diverse economy by enabling UAE nationals to play an increasing role in the private sector and to continue to make a vital contribution in advancing the nation’s economic development. Through tailored initiatives, NAFIS works to integrate UAE nationals in existing and new fields within the private sector. The program is based on cooperation between the federal government, local authorities and private sector companies to achieve common interests and to build a stronger and more sustainable economy.
H.E. Ghannam Al Mazrouei said “NAFIS is very pleased to sign this strategic collaboration with ADNOC to enable more skilled employment opportunities for UAE Nationals in the private sector. The agreement supports the UAE leadership’s vision to empower our national talent and enhance their contribution to the nation’s growth and development. By leveraging ADNOC’s broad supply chain, we will expand and deepen NAFIS’s outreach across the energy, industrial, and manufacturing sectors and nurture the UAE’s next generation of talent in these areas.”
This agreement is part of ADNOC’s comprehensive efforts to support the economic diversification of the UAE, and to increase employment opportunities for local talent in its extensive private sector supply chain. Since the launch of ADNOC’s highly succesful In-Country Value (ICV) program in 2018, more than 3,500 UAE nationals have been employed by companies in ADNOC’s supply chain.
As part of this collaboration, ADNOC will host sessions to match talented Emirati professionals with employment opportunities in large companies in its supply chain. ADNOC has already hosted the first session, with over 300 local participants and 11 major companies taking part, including Abu Dhabi Oilfield Services CompanyADOS, Al Ghaith Oilfield Supplies and Services Co, Ali & Sons Oil-Field Supplies & Services, Al Mansoori, Al Masaood Oil industry Supplies & Services, Baker Hughes, Gulf Automation Services & Oilfield Supplies, Halliburton, Schlumberger, TechnipFMC, and Weatherford.
On 14 June 2022, at the 2022 OnBoard Hospitality Awards* at the Aircraft Interiors Expo in Hamburg, Air France received the award for the Best Comfort Kit for Children and Babies and the Bronze Award for the Best Travel Cabin Concept for the design of its Airbus A220.
First place for children’s and babies’ comfort kits
Since February 2022, in all Air France long-haul cabins, young travellers aged 3 to 11 have been given a pretty “sorter” flight pouch in two colours: blue and light grey. With a postcard to colour in, a box of crayons, an activity book and a card game, this pouch contains a multitude of surprises to keep them entertained during their trip. This sorter is also perfect for storing your passport, drawings and souvenirs collected during your trip. In keeping with Air France’s eco-friendly approach, this pouch has been designed in FSC (sustainably managed forests) cardboard and comes unwrapped.
In addition, to ensure optimum well-being for families travelling with a baby (aged 0 to 2), Air France also offers a recyclable cardboard box in the long-haul La Première, Business and Premium Economy cabins containing a rabbit cuddly toy, Castéra certified organic thermal water and a honeycomb cotton pouch. Economy cabin customers also receive a recyclable cardboard box containing the rabbit cuddly toy.
Third place for the best cabin concept 2022
Unveiled in September 2021, the Airbus A220-300, the new generation aircraft dedicated to Air France’s short- and medium-haul network, has 148 seats in a 3-2 configuration enabling 80% of customers to enjoy a window or aisle seat. The seat is the widest on the market for a single-aisle aircraft. It is leather upholstered and features ergonomic seat foams for added comfort, with a reclining seat and adjustable headrest. It has symmetrical stitching and an embroidered grey thread martingale, evoking the idea of padded upholstery, synonymous with comfort. The accent, the company’s trademark symbol, is featured on the front and back walls of the aircraft. It is also embroidered on each seat, anchoring the cabin in the company’s universe. A large one-piece tray table, cup holder, seat pocket, individual USB A and C sockets and a tablet or smartphone holder integrated into the backrest complete the package.
The cabin, the most spacious and brightest in its category, is decorated in Air France’s signature colours: shades of blue, a strong presence of white providing light and contrast, and touches of red embodying the airline’s excellence and know-how. The carpet on the floor revisits the traditional ornamental herringbone pattern, symbolising the emblematic Parisian Haussmann apartments. It also plays a strong role in terms of signage by welcoming customers and providing perspective. Large panoramic windows provide natural light throughout the journey. From boarding to landing, 8 lighting moods dedicated to the aircraft boost the boarding and disembarkation phases as well as softening the lighting, favouring a tranquil atmosphere on board. The spacious baggage compartments make it easy to store hand luggage. The particularly wide central aisle makes it easy for passengers to move around.
*The OnBoard Hospitality Awards are judged by a panel of experts from the airline industry, as well as by the online voting of the website’s readers, who are also from the travel industry.
Al Ansari Exchange announces the introduction of smart counters across branches in the UAE. The new counters will help increase operational efficiencies and provide customers with a convenient and faster way to pay for simple transactions.
The machines will be installed in more than 50 branches, providing services such as remittances, bill payments, payroll salary withdrawal, credit card bill payments, and cash payments for digital transactions. By 2024, over 100 counters will be fully operational across the country.
Mohamad Bitar, Deputy CEO at Al Ansari Exchange commented, “Our smart counters are the latest in our ramped-up digital transformation activities this year geared to bring customer satisfaction to new heights. It is part of our tactical response to the unstoppable, ongoing digital shift, which has particularly accelerated during this pandemic. Due to the rapid emergence and evolution of technology, customers today demand efficiency, ease and speed, along with some level of control, safety and personalization, in their transactions. The devices are designed to bring them this seamless experience, empowering them to choose and pay for services without any human interaction. This is consistent with our commitment to provide an outstanding experience and innovative services to our customers.”
The intuitive touch-screen machines will boost the rate of transaction turnarounds, easing queues for customers by providing quick and easy self-service channels. Approximately 20- 30 counters will be installed every six months in a phased manner, allowing Al Ansari Exchange to provide omni-channel solutions to our customers based on their needs and requirements.
