1. Financial Analysis

2. Asset Trends FedEx – Rent Assets – Cash Balance Issues UPS – Cash Balance Expansion: $100M CompanyCurrent Ratio 2003Current Ratio 2008 Fedex1.181.35 UPS1.791.13

3. Liability Trends FedEx – Debt Load – Fixed Charge Ratio Low Cap-Ex Limitations UPS – Debt vs. Equity

4. Conclusions FedEx – SEO 299 Million Outstanding 800 Million Authorized Issue 400 Million Shares Raise $31.2B – Disregarding issuance costs Par Value$10 Stock Price 12/29/2003 $68 Price of New Shares$78

5. Conclusions 12/31/2003FedExUPS Retained Earnings$6,250 Million$14,356 Million Cash Flow from Operations$1,871 Million$4,646 Million Internal Growth Rate4.86%6.91% UPS – Internal Financing – Internal Growth Rate 6.91% – Large Operating Cash Flows – Large EOY Cash Balance