UPS Overview November 1, 2017

1. August 22, 2017

2. Presentations may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-
looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or
anticipated results. These risks and uncertainties include, but are not limited to: general economic conditions, both in the U.S. and internationally; significant competition on a local,
regional, national, and international basis; changes in our relationships with our significant customers; existing complex and stringent regulations in the U.S. and internationally, changes
to which can impact our business; increased security requirements that may increase our costs of operations and reduce operating efficiencies; legal, regulatory or market responses to
global climate change; negotiation and ratification of labor contracts; strikes, work stoppages and slowdowns by our employees; the effects of changing prices of energy, including
gasoline, diesel and jet fuel, and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to maintain the image of our brand; breaches in
data security; disruptions to the Internet or our technology infrastructure; our ability to accurately forecast our future capital investment needs; exposure to changing economic, political
and social developments in international and emerging markets; changes in business strategy, government regulations, or economic or market conditions that may result in substantial
impairment of our assets; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; the potential for various claims and
litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; our ability to realize the anticipated benefits
from acquisitions, joint ventures or strategic alliances; our ability to manage insurance and claims expenses; and other risks discussed in our filings with the Securities and Exchange
Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2016, or described from time to time in our future reports filed with the
Securities and Exchange Commission. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions
contained in such forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. We do not undertake any obligation to
update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements.
Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking
statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements.
Information included in all presentations, including comparisons to prior periods, may reflect adjusted results. See appendix for reconciliations of adjusted results and other non-GAAP
financial measures.
Forward-Looking Statements

3. 2017Targets (Non-GAAP)
U.S. Domestic Target 2017
Revenue 5% to 7%
Adj. Operating Profit 6% to 8%
Adj. Operating Margin Expand slightly
International Target 2017
Revenue 2% to 4%
Adj. Operating Profit -8% to -4%
Adj. Operating Margin Below LY
SC&F Target 2017
Revenue 8% to 10%
Adj. Operating Profit Down 1Q, Y/Y
Adj. Operating Margin Slightly below LY
Total Company Target 2017
Total Revenue 5% to 7%
Adj. Operating Profit ~3%
Adj. Earnings per Share 1% to 6%
Share Repurchases of $1.8B, Dividend Payout of 50% to 55%
of Adj. Net Income, and ROIC* between 23% to 28%
See Appendix for reconciliation of adjusted results from prior years.
The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-
market adjustments, which would be included in GAAP results and could be material.
3

4. 2018 - 2019 Targets (Non-GAAP)
U.S. Domestic Target 2018 - 2019
Revenue 4% to 6%
Adj. Operating Profit 5% to 9%
Adj. Operating Margin 13% to 14%
International Target 2018 - 2019
Revenue 5% to 8%
Adj. Operating Profit 8% to 12%
Adj. Operating Margin 16% to 19%
SC&F Target 2018 - 2019
Revenue 4% to 8%
Adj. Operating Profit 6% to 10%
Adj. Operating Margin 6% to 8%
Total Company Target 2018 - 2019
Total Revenue 4% to 6%
Adj. Operating Profit 5% to 9%
Adj. Earnings per Share 5% to 10%
Share Repurchases of $1.0B to $1.8B, Dividend Payout of 50% to 55%
of Adj. Net Income, and ROIC* between 23% to 28%
See Appendix for reconciliation of adjusted results from prior years.
The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-
market adjustments, which would be included in GAAP results and could be material.

5. Strong History of Returns on Capital
10%
20%
30%
40%
ROIC
23% to 28%
2011 2016 2019
Historical average
greater than 20%
Ultimate Investment Allocation Flexibility
 Re-invest in the business
 Dividends are a priority
 Maintain a strong balance sheet
 Balanced approach to share repurchases
5

6. Reinvestment History
UPS Airline
Global
Expansion
SC&F
Acquisitions
Smart Global
Logistics Network
0%
4%
8%
12%
16%
20%
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019
PercentofRevenue
6
6 – 7%
Revenue

7. Annual cash dividends paid since 1969
*2008 included five dividend payments (totaling $2.22/share) due to dividend payment schedule change
**2017 is estimated based on $.83 per share first quarter announcement
$1.68
$1.80 $1.80
$1.88
$2.08
$2.28
$2.48
$2.68
$2.92
$3.12
$3.32
2007 2008* 2009 2010 2011 2012 2013 2014 2015 2016 2017**
Dividends
Since IPO growth averaged 10%
Stable or growing dividend for almost 50 years

8. 8
Industry Leading Margins*
*Operating Margin is presented on an as adjusted basis for all companies (trailing 12 months) and is not reflective of the Global Small Package market.
**FDX includes TNT in FY 4Q17
14.3%
11.3%
9.7%
UPS DHL FDX**

9. 4.3% 5.7%5.8%
7.2%
12%
20%
29%
34%
US Global
Expected Growth (CAGR) 2016 to 2020
GDP Retail Online Retail Cross Border Online Retail (Export)
~6x
~3.5x
~1.25x
~7x
~3x
~1.25x
Online Retail is Growth Engine for Future
Online Retail is forecasted to grow 3x the rate of GDP
UPS is transforming
our business model to
capture this
Opportunity
Note: Nominal GDP
Source: UPS Rates & Forecasting, eMarketer, Forrester
9

10. B2C Mix Expected to Climb
36%
40%
44%
46%
48%
49%
51%
2009 2011 2013 2015 2017 2019
PercentofU.S.DomesticPackages
Actual Forecast
B2C Shipments
projected
to continue
growing
10

11. Solving the B2C Equation at UPS
Revenue per
package
Cost
per stop
Packages
per stop
Value-added Solutions
Dim-weight Pricing
Peak Pricing Options
ORION
Hub Modernization
SurePost
UPS Access Point™
Synthetic Density
UPS Access Point™ Network
• “Not at Home” delivery
• Enhances capacity
• Improves customer service
• >8,000 in US
• >27,000 globally
• Members re-direct delivery
• Eliminates multiple attempts
• 37M members and growing
• >980M delivered packages
UPS MyChoice
®
UPS SurePost
®
Redirect
• Expanding consumer options
• Growth in Large & Middle-market
• ~33% redirected into UPS system
11
Commercial Residential

12. Superior Consumer Experience
UPS My Choice® service
UPS Access Point™ locations
12
Control
Convenience
Choice
UPS My Choice ®, UPS Access PointTM, UPS Returns

13. 13
Bending the Cost Curve

14. Smart Global Logistics Network Benefits
ORION
Network
Planning Tool
EDGE
Facility
Automation
*Annual cost savings and avoidance
$800M to $1B*
Upon Completion
14

15. The Smart Global Logistics Network
International Package Flow Tech
ORION
Facility Automation/
Modernization
Network Planning Tool
EDGE
Smart Trailer
SurePost
Redirect
Higher Levels of Automation and Integration Than Ever Before
15

16. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
New wing
design
Modern flight deck
Next-generation alloys
New 787
technology engines
UPS with Breakthrough Capabilities
16% More Efficiency and Capacity; Longest Routes with Ability to Cascade Capacity
16
Next-generation cargo
handling system
• 14firm,14options
• 3todeploylate2017

17. ORION
CompletedPhaseIin2016:
• Morethan$400Mincostsavingsandavoidance
• GeneratedNPVofmorethan$700M
• 2.3Bdeliveryrouteoptimizationsinoneyear
• 210Mfewermilesdriven
Future:
• Dynamicfunctionality
• $150to$200Minannualsavings
Extending Innovation Beyond the Network
17

18. Facility Investments
Over70newpackageandhubprojectsaroundtheworld:
• AdvancingtheconnectednessoftheUPSnetwork
• New,expandingandretrofitfacilities
• MoreEfficiency…MoreFlexibility…MoreCapacity
• Investmentsinourintegratednetworkbenefitallpackagesandcustomers
Costsavingsandavoidance:
• Inall,targetingbetween$300Mto$400Mannually
The World’s Most Integrated and Efficient Network…will be Even More Efficient
18

19. • GeneralRateIncrease
• NEWPeakSurcharge
• DIMweight
• Largepackagehandlingsurcharge
• SurgePricing
• Residentialdeliverysurcharge
• Weeklyfuelsurcharge
• ForecastAccuracyTool
Revenue Management
Align Price
with Cost
Efficient Integrated Network
Global Package / Forwarding /
Freight / Distribution
Broad Portfolio of Capabilities
Products / Technologies
UPS Customer Solutions
Supply Chain and Industry Expertise /
Marketing / Sales
O N E U P S E X P E R I E N C E
B A L A N C E D G L O B A L P R E S E N C E
THOUGHTLEADERSHIP
LEADINGBRAND
19

20. Saturday Operations
FastestandWidestServiceonMondays
• PickupSaturday,DeliveryMonday
• 1business dayearlier
• CommercialandResidential
• Majormarketsinclude: NewYork,LosAngeles,
Dallas,Chicago,Seattle,Atlanta,andMiami
• ThroughJune2017, inalmost50metroservice
areas,ornearly2,500cities&towns
• In2018,coveragetoexpandtoabout5,900cities
andtowns
20
U.S. Pickup and Delivery of Ground and Air 6 Days a Week
We will provide Saturday Ground service to
about 4,700 towns and cities by the end of 2017.

21. Asset Leverage, Technology Driven Flexibility, Unmatched Efficiency
All Service Levels, One Integrated Network
Advantage
of single
integrated
network
UPS domestic
and international
packages –
all levels
DeliveryUPS Worldport®
Distribution Center
UPS Shipper UPS Feeder Package Sorting Hub UPS Airplane
Residential
Business
UPS Access PointTM
Returns
NPT Automation 747-8
NPT, EDGE
ORION

22. International Growth Strategy
• First expanded outside the U.S. more than 40 years ago
• Today we serve more than 220 countries and territories
* UPS Estimates
CREATE
OPTIMIZE
FOUNDATION
• Invested nearly $2B in our European infrastructure, about one-third complete
• Add capacity to existing network footprint, increase scale economies & expand capabilities
• Offer customer centric solutions: UPS My Choice, UPS Access Point, and i-parcel
• Improving Europe time-in-transit by cutting one full day between 101K “city pairs”
• Entered 3PL truckload market with the acquisition of Freightex
• Expanding our dangerous goods service to 36 countries; effectively expand market opportunities
22

23. International Service Portfolio Expansion
ExpandIndustry-LeadingExpressService:
• UPSExpressprovidesbroadesttime-of-daycoverageinthemarket
• UPSExpressSaverprovidesglobalcoveragetoalmostanywherein20to48hours
• In2016:
• AddedEarlyA.M.ExpressPlusto26newcountries
• AddedExpressto52newcountries
• In2017,bringingExpressandExpressPlusto37newcountries
• Cutafulldayoutofdeliverytimesbetweenover350citiesin26Europeancountries
23
UPS Reaches the Top 20 Countries* for AM Delivery - More than the Competition
* By GDP

24. 10%
15%
20%
25%
20162013
International Operating Margins
16 -19%
200-300bps
Impact*
See Appendix for reconciliation of adjusted results.
*Impact due to currency hedges
24

25. 400
600
800
1,000
1,200
1,400
2Q07
1Q08
4Q08
3Q09
2Q10
1Q11
4Q11
4Q12
3Q13
2Q14
1Q15
4Q15
3Q16
2Q17
International Export Volume Trends
Source: Company quarterly reports Note: FedEx in fiscal quarters, excludes TNT
UPS’ 10 Year CAGR = +6.0%
FedEx’s 10 Year CAGR = +2.3%
AverageDailyVolume
25

26. 26
• Air and Ocean
• Brokerage
• Rail Freight
• Insurance / Financing
• Expedited Ground
• Express Critical
• Supplier Management
• Design & Planning
• Post Sales and Service
Parts
• Contract Logistics
• e-fulfillment solutions
• Acquired Marken
• TL brokerage
• Expanded in Mexico
• Best in class customer
facing technology
• Expanding into Europe -
acquired FreightEx
• Freight LTL
• TL and Intermodal
• Dedicated Contract
Carriage
• Specialty solutions: trade
show, temperature…
Freight Forwarding
Supply Chain & Freight
Distribution Coyote UPS Freight
Addressing Customers’ Total Transportation Needs With Industry Leading Portfolio of Services
Supply Chain &
Freight Portfolio…
…connected well to
Small Package

27. 78 dedicated facilities globally… and growing
Global Healthcare Integrated Distribution Network
• GDP & GMP compliance*
• Temperature control storage &
packaging
• Integrated Transportation services
including Temperature Controlled Air
and Ground
• Labelling and kitting
• Order to cash services including
charge-back processing
• Pharmacy operations
• Single integrated global platform
• Implantable Device Inventory
Management and Loaner Kit
management
7.7 million square feet
Current UPS Facilities UPS Air Hub
27

28. UPSAcquires Marken
• Expanding existing UPS capabilities and coverage, especially in emerging markets
• Expect to be accretive year 1
• High margin business
• #1 Inbound Market Leader
• 43 Global Facilities
• Serving >150 countries
• 140 Vehicles
• 650 Employees
Makes UPS the World’s Largest Clinical Trials Integrated Carrier
Expanding Global Clinical Trials Capability
28

29. Coyote - High Growth, Scaled Provider
Technology-driven solutions and a scaled provider of full truckload brokerage
services. Coyote primarily operates in North America, but with recent expansion
into Europe, Coyote is positioned to service global shippers.
Complete Global Visibility Supplier & Systems Integrator 29

30. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
30
Building International Capabilities
Canada &
West Germany
Western Europe,
Asia & LatAm
expansion
Foundational
acquisitions & organic
growth in Asia, W. Europe,
Canada & Mexico
Core,
Opportunity &
Maintenance categories
China, Poland,
Turkey, Chile, Czech
Republic, Hungary
investments
Emerging
Markets Expansion
ISMEA region formed
20172013200319891975-76
Territory Expansion
Major Acquisitions and Investments Include

31. Appendix
I. Latest Results
II. Additional Information
III. Financial Reconciliations
IV. Glossary
31

32. • 2Q17:
 U.S. Domestic Operating Profit Jumps 13% and Margin Expands to 14.3%
 U.S. Domestic Revenue up 8.1% on Strong Air & Ground Product Growth
 Export Shipments Rise 12% with Gains from all International Regions
 International Revenue up 2.8%, Currency-Neutral Revenue* 8.3% Higher
 All Supply Chain & Freight Units Contribute to 12% Revenue Increase
 Company Reiterates Full-Year 2017 Adjusted EPS Guidance
Consolidated Results
32
(In millions, except EPS) 2Q17 2Q16 $ Change % Change
Revenue $15,750 $14,629 $1,121 7.7%
Operating Expenses $13,534 $12,591 $943 7.5%
Operating Profit $2,216 $2,038 $178 8.7%
Net Income $1,384 $1,269 $115 9.1%
Diluted EPS $1.58 $1.43 $0.15 10.5%

33. UPS Snapshot
33
Ranked as most valuable global brand by:
Started by two teenagers
making retail deliveries in the
early years
Delivering 19 million packages
every day
Founded 110
Year Ago
Leader in
global supply chain &
freight services
Premium Global Brand
Enabled by Technology
UPS.com Smart LogisticsUPS Ready
434,000+
employees
Sustainably Serving Customers
& Communities
Employees Sustainability
20% reduction
carbon density
Customers &
Communities
10M+
Connected
100M+
UPS Foundation
500+
aircraft
10th largest
airline serving
114,000
delivery vehicles
from vans to
motorcycles

34. 34
UPS Alternative Fuel /
Advanced Technology Fleet
International Total: 1,456*
• Propane: 1,130
• Electric: 159
• CNG: 76
• Ethanol: 62
• Biomethane: 19
• Hybrid Electric: 10
U.S. Total: 7,111*
• CNG: 3,471
• LNG: 1,353
• Propane: 1,176
• Hybrid Electric: 500
• Composite: 398
• Electric: 122
• HHV: 91
*As of 05/31/2017
Total Worldwide: 8,567*

35. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
The UPS Foundation On A Page
35
Diversity &
Inclusion
Connected
Community
Environmental
Sustainability
Global
Volunteerism
$116.6M
Total Philanthropic
Contributions to
170+ countries (2016)
2.7M
Employee Volunteer
Hours
UPS is Committed to More™
4.6M
Vehicles taken
off the road
1B+
Miles on alternative and
advanced technology
fleet
Recognized industry leader
in environmental sustainability
Commitment to help customers build more
sustainable supply chains
Strong tradition of community involvement
$55.3M+
Employee pledge in
support of United Way
$13.5M+
Underserved &
underrepresented
population

36. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Leveraging Major Sponsorships
As An Enabler of Growth
30 million
items in and out of the Olympic
village and venues
19 million
items in and out of the Olympic
Village and venues
China 2008 London 2012 Expo 2020
Two air hubs in China and
accelerated growth
35% respondents more
likely to use UPS post
sponsorship
$2 billion investment
in Europe - ongoing
“Connecting Minds,
Creating the Future”
36
25M+
expected visitors
70%
visitors are overseas

37. EUROPE APAC AMERICAS
Employees 46,500 14,400 17,000
Delivery Fleet 14,000 1,880 3,880
Operating Facilities 440 450 360
UPS Points of Access 17,500 3,500 2,800
Flight Segments
Intra-Region
Intercontinental
170 Daily
141 Daily
194 Weekly
143 Weekly
192 Daily
41 Daily
*Excludes ISMEA Region Source: UPS Pressroom Fact Sheets
UPS International Regional Statistics
37

38. Reconciliation of GAAP and non-GAAP Financial
Measures
We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures, including, as
applicable, "as adjusted" operating profit, operating margin, pre-tax income, net income and earnings per share. The equivalent measures determined in accordance with GAAP are also
referred to as "reported" or "unadjusted.” Additionally, we periodically disclose free cash flow as well as currency-neutral revenue, revenue per piece and operating profit.
We believe that these non-GAAP measures provide additional meaningful information to assist users of our financial statements in understanding our financial results and assessing our
ongoing performance because they exclude items that may not be indicative of, or are unrelated to, our underlying operations and may provide a useful baseline for analyzing trends in our
underlying businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions. We also use certain of these measures for the
determination of incentive compensation award results.
Non-GAAP financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP financial
information does not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other
companies.
Currency-Neutral Revenue, Revenue per Piece and Operating Profit
We supplement the reporting of our revenue, revenue per piece and operating profit with similar non-GAAP measures that exclude the period-over-period impact of foreign currency
exchange rate changes and hedging activities. We believe currency-neutral revenue, revenue per piece and operating profit information allows users of our financial statements to
understand growth trends in our products and results. We evaluate the performance of our International Package business on a currency-neutral basis.
Currency-neutral revenue, revenue per piece and operating profit are calculated by dividing current period reported U.S. dollar revenue, revenue per piece and operating profit by the
current period average exchange rates to derive current period local currency revenue, revenue per piece and operating profit. The derived current period local currency revenue, revenue
per piece and operating profit are then multiplied by the average foreign exchange rates used to translate the comparable results for each month in the prior year period (including the
period over period impact of foreign currency revenue hedging activities). The difference between the current period reported U.S. dollar revenue, revenue per piece and operating profit
and the derived current period U.S. dollar revenue, revenue per piece and operating profit is the period over period impact of currency fluctuations.
38

39. U.S. Domestic Cost Per Piece Reconciliation
39

40. Currency Neutral Revenue Reconciliation
40
2017 2016 % Change Currency 2017* % CAGR
Revenue (in millions):
U.S. Domestic Package 9,745$ 9,015$ 8.1% -$ 9,745$ 8.1%
International Package 3,163 3,077 2.8% 170 3,333 8.3%
Supply Chain & Freight 2,842 2,537 12.0% 14 2,856 12.6%
Total revenue 15,750$ 14,629$ 7.7% 184$ 15,934$ 8.9%
* Amounts adjusted reflect impacts for currency exchange rate differences.
Currency Neutral Revenue
Three Months Ended Currency
NeutralJune 30

41. Small Package Operating Margin Reconciliation
41
(amounts in millions) 3Q16 4Q16 1Q17 2Q17 TTM
GAAP Operating Income (Loss)
U.S. Domestic Package 1,252$ (570)$ 1,076$ 1,395$ 3,153$
Mark-to-Market Pension Impact (Outside of 10% Corridor) - 1,908 - - 1,908
U.S. Domestic Package Adjusted 1,252$ 1,338$ 1,076$ 1,395$ 5,061$
International Package 576$ 281$ 529$ 583$ 1,969$
Mark-to-Market Pension Impact (Outside of 10% Corridor) - 425 - - 425
International Package Adjusted 576$ 706$ 529$ 583$ 2,394$
Adjusted Small Package Operating Income 1,828$ 2,044$ 1,605$ 1,978$ 7,455$
Revenue
U.S. Domestic Package 9,289 10,913 9,535 9,745 39,482
International Package 3,024 3,335 3,058 3,163 12,580
Total Small Package 12,313$ 14,248$ 12,593$ 12,908$ 52,062$
U.S Domestic Operating Margin* 13.5% 12.3% 11.3% 14.3% 12.8%
International Operating Margin* 19.0% 21.2% 17.3% 18.4% 19.0%
Adjusted Operating Margin* 14.8% 14.3% 12.7% 15.3% 14.3%

42. Historical Operating Margin Reconciliation
2011 2012 2013 2014 2015 2016
(amounts in millions)
U.S. Domestic Package GAAP Operating Profit 3,764$ 459$ 4,603$ 2,859$ 4,767$ 3,017$
Defined Benefit Plans Mark-to-Market Charge 479 3,177 - 660 62 1,908
Transfer healthcare coverage to MEP - - - 990 - -
Multiemployer Pension Plan Withdrawal Charge - 896 - - - -
(Gain) or Loss on Real Estate Sale 15 - - - - -
U.S. Domestic Package Adjusted Operating Profit 4,258$ 4,532$ 4,603$ 4,509$ 4,829$ 4,925$
International Package GAAP Operating Profit 1,709$ 869$ 1,757$ 1,677$ 2,137$ 2,044$
Defined Benefit Plans Mark-to-Market Charge 171 941 - 200 44 425
Transfer healthcare coverage to MEP - - - 28 - -
TNT Termination Fee and Related Expenses - - 284 - - -
Gain Upon Liquidation of Foreign Subsidiary - - (245) - - -
International Package Adjusted Operating Profit 1,880$ 1,810$ 1,796$ 1,905$ 2,181$ 2,469$
Supply Chain & Freight GAAP Operating Profit 607$ 15$ 674$ 432$ 764$ 406$
Defined Benefit Plans Mark-to-Market Charge 177 713 - 202 12 318
Transfer healthcare coverage to MEP (48) - - 84 - -
Supply Chain & Freight Adjusted Operating Profit 736$ 728$ 674$ 718$ 776$ 724$
Total GAAP Operating Profit 6,080$ 1,343$ 7,034$ 4,968$ 7,668$ 5,467$
Total Adjusted Operating Profit 6,874$ 7,070$ 7,073$ 7,132$ 7,786$ 8,118$
Revenue
U.S. Domestic Package 31,717$ 32,856$ 34,074$ 35,851$ 36,747$ 38,301$
International Package 12,249 12,124 12,429 12,988 12,149 12,350
Supply Chain & Freight 9,139 9,147 8,935 9,393 9,467 10,255
Total Revenue 53,105$ 54,127$ 55,438$ 58,232$ 58,363$ 60,906$
GAAP U.S Domestic Package Operating Margin 11.9% 1.4% 13.5% 8.0% 13.0% 7.9%
GAAP International Package Operating Margin 14.0% 7.2% 14.1% 12.9% 17.6% 16.6%
GAAP Supply Chain & Freight Operating Margin 6.6% 0.2% 7.5% 4.6% 8.1% 4.0%
GAAP Total Operating Margin 11.4% 2.5% 12.7% 8.5% 13.1% 9.0%
Adjusted U.S Domestic Package Operating Margin 13.4% 13.8% 13.5% 12.6% 13.1% 12.9%
Adjusted International Package Operating Margin 15.3% 14.9% 14.5% 14.7% 18.0% 20.0%
Adjusted Supply Chain & Freight Operating Margin 8.1% 8.0% 7.5% 7.6% 8.2% 7.1%
Adjusted Total Operating Margin 12.9% 13.1% 12.8% 12.2% 13.3% 13.3%
Segment Operating Margins
42

43. Adjusted Net Income and EPS Reconciliation
(amounts in millions, except per share amounts) 2014 2015 2016 2015 & 2016
% Increase 2014
to 2016
% CAGR
2014 to 2016
GAAP Net Income 3,032$ 4,844$ 3,431$ 8,275$ 13.2% 6.4%
GAAP Diluted Earnings Per Share 3.28$ 5.35$ 3.87$ 18.0% 8.6%
Operating Expenses:
Transfer healthcare coverage to MEP 1,102$ -$ -$ -$
Pension Mark to Market 1,062 118 2,651 2,769
Total Adjustments to Operating Expenses: 2,164$ 118$ 2,651$ 2,769$
Tax-Effect of Above Items (807) (39) (978) (1,017)
Total Adjustments to Net Income 1,357$ 79$ 1,673$ 1,752$
Adjusted Net Income 4,389$ 4,923$ 5,104$ 10,027$ 16.3% 7.8%
Divided By: Diluted WAVG Shares Outstanding 924 906 887
Adjusted Diluted Earnings Per Share 4.75$ 5.43$ 5.75$ 21.1% 10.0%
Shareholder Distributions
Dividends 2,487$ 2,649$ 2,771$ 5,420$
Share Repurchases 2,662 2,711 2,706 5,417
Total 5,149$ 5,360$ 5,477$ 10,837$
% Adjusted Net Income - Dividends 57% 54% 54% 54%
% Adjusted Net Income - Share Repurchases 61% 55% 53% 54%
% Adjusted Net Income Returned to Shareholders 118% 109% 107% 108%
Earnings per Share and Shareholder Distribution Trends
43

44. ROIC Reconciliation
(amounts in millions)
2011 -
Adjusted
2011 -
GAAP
2012 -
Adjusted
2012 -
GAAP
2013 -
Adjusted
2013 -
GAAP
2014 -
Adjusted
2014 -
GAAP
2015 -
Adjusted
2015 -
GAAP
2016 -
Adjusted
2016 -
GAAP
Operating Profit 6,874 6,080 7,070 1,343 7,073 7,034 7,132 4,968 7,786 7,668 8,118 5,467
Less: Taxes (2,365) (2,073) (2,439) (230) (2,504) (2,427) (2,532) (1,719) (2,647) (2,607) (2,801) (1,815)
After-Tax Op Profit 4,509 4,007 4,631 1,113 4,569 4,607 4,600 3,249 5,139 5,061 5,317 3,652
Beginning LT Debt 10,491 10,491 11,095 11,095 11,089 11,089 10,824 10,824 9,856 9,856 11,316 11,316
Ending LT Debt 11,095 11,095 11,089 11,089 10,824 10,824 9,856 9,856 11,316 11,316 12,394 12,394
Beginning Shareowners' Equity 10,387 8,047 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491
Ending Shareowners' Equity 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 3,850 429
Average Invested Capital 20,913 18,371 19,989 17,013 18,210 16,567 16,301 14,663 15,864 12,911 16,380 13,315
Return on Invested Capital 21.6% 21.8% 23.2% 6.5% 25.1% 27.8% 28.2% 22.2% 32.4% 39.2% 32.5% 27.4%
Beginning Total Debt 10,846 10,846 11,128 11,128 11,120 11,120 10,872 10,872 10,787 10,787 14,334 14,334
Ending Total Debt 11,128 11,128 11,120 * 11,120 * 10,872 10,872 10,787 10,787 14,334 14,334 16,075 16,075
Beginning Shareowners' Equity 10,387 8,047 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491
Ending Shareowners' Equity 9,853 7,108 7,941 4,733 6,566 6,488 5,356 2,158 5,200 2,491 3,850 429
Average Invested Capital 21,107 18,565 20,021 17,045 18,250 16,607 16,791 15,153 17,839 14,885 19,730 16,665
Return on Invested Capital 21.4% 21.6% 23.1% 6.5% 25.0% 27.7% 27.4% 21.4% 28.8% 34.0% 27.0% 21.9%
*2012 total debt adjusted to reflect 1/15/13 debt repayment of $1.75B
Shareowners Equity Adjustments:
2011 beginning balance adjusted $2.340 billion for unrecognized pension and postretirement benefits costs, net of tax
2011 ending balance adjusted $2.745 billion for unrecognized pension and postretirement benefits costs, net of tax
2012 ending balance adjusted $3.208 billion for unrecognized pension and postretirement benefits costs, net of tax
2013 ending balance adjusted $78 million for TNT and unrecognized pension and postretirement benefits costs, net of tax
2014 ending balance adjusted $3.198 billion for unrecognized pension and postretirement benefits costs, net of tax
2015 ending balance adjusted $2.709 billion for unrecognized pension and postretirement benefits costs, net of tax
2016 ending balance adjusted $3.421 billion for unrecognized pension and postretirement benefits costs, net of tax
ROIC
44

45. Glossary
Definition Definition Definition
ABC Activity Based Costing EDGE
Enhanced Dynamic Global
Execution
LTL Less-Than-Truckload
ADV Average Daily Volume EMEA
Europe, Middle East, and
Africa
MTM Mark-To-Market pension revaluation
B2B Business To Business retail channel EPS Earnings Per Share NPT Network Planning Tools
B2C
Business To Consumer retail
channel
FSC Fuel Surcharge ORION
On-Road Integrated Optimization and
Navigation
B2R
Business To Retail store
distribution channel
GDP Gross Domestic Product ROIC Return On Invested Capital
Block
hours
Aircraft hours IAF International Air Freight SC&F Supply Chain and Freight segment
CAGR Compound Annual Growth Rate IP Industrial Production SSLAW Small Sort Label & Weigh
DIAD
Delivery Information Acquisition
Device
IPO Initial Public Offering TTM Trailing Twelve Months
3PL Third Party Logistics
45