United Parcel Service : UPS Freight Divestiture Overview

UPS Freight Divestiture

January 25, 2021

Agenda

Forward Looking Statements

Key Transaction Terms

Rationale

UPS Freight Overview

UPS Financial Statement Impact

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Forward-Looking Statements

This presentation contains and refers to "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than those of current or historical fact, and all statements accompanied by terms such as "expect," "anticipate," "plan," and variations thereof, and similar terms, are intended to be forward-looking statements. Forward-looking statements are made subject to the safe harbor provisions of the federal securities laws pursuant to 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, present expectations or anticipated results. These risks and uncertainties, many of which are outside of our control, include, but are not limited to: our and TFI International, Inc.'s ability to satisfy the closing conditions and obtain necessary regulatory approvals in a timely manner; the risk that any regulatory approval, consent or authorization required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; unanticipated difficulties or expenditures relating to the transaction; business disruptions during or following the sale, including the diversion of management time and attention; the response of business partners to the announcement and pendency of the transaction; our ability to successfully reinvest the proceeds (after adjustment) from the sale as part of our core business in a way that creates value for our shareholders; and the 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, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of information contained in such forward-looking statements. 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, except as required by law.

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UPS Freight Divestiture

January 25, 2021

Key Transaction Terms: UPS Freight Divestiture

• UPS has signed an agreement to sell UPS Freight to an affiliate of TFI International Inc.
• Transaction expected to close in 2Q 2021 for $800M before adjustments
• UPS Freight employees will go with the business to TFI
• UPS to retain historical pension assets and liabilities; pension benefits earned after closing are the responsibility of TFI
• Transition Services Agreement will go into effect at closing
• Commercial agreement will allow UPS customers to continue using UPS Ground with Freight Pricing
• No operational impact to UPS Small Package

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