Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Deutsche Bank Global Industrials and Materials Summit 2017
15 slides from Delta Air Lines's conference presentation, Jun 7, 2017
Slide 1: Delta: Delivering Sustainable Results
Delta: Delivering Sustainable Results Deutsche Bank Global Industrials and Materials Summit June 7, 2017
Slide 2: Safe Harbor
2 Safe Harbor Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, be lie fs, intentions, projections or strategies for the future, may be "forward - looking statements" as defined in the Private Securities L itigation Reform Act
Slide 3: Delivering Sustainable Results
Delivering Sustainable Results Solid Track Record of Producing Consistent Results 2017: A Transition Year for Our Business Long - Term Focus Drives Value Leveraging our solid foundation to produce consistent, sustainable results for shareholders • Running a reliable, customer - focused airline is pr
Slide 4: Delta's Evolution Over the Last Decade
Delta’s Evolution Over the Last Decade Delta’s entire business has been transformed, creating a durable franchise for all stakeholders 4 2007 Completed successful restructuring and re - listed on NYSE 2008 Merged with Northwest to create world’s largest airline 2010 Added to S&P 500; Company initiat
Slide 5: Consistently Producing Solid Results
Consistently Producing Solid Results Running a reliable, customer - focused airline is producing strong profits and cash flows, allowing for improved balance sheet strength and increased return of capital to shareholders Expect ~$6B in pretax profits again in 2017 $0.6B $4.5B $5.9B $6.1B 2007 2014 2
Slide 6: 2017 Is A Transition Year
2017 Is A Transition Year • System capacity growth capped at 1% for 2017 – appropriate level to balance capital investment and supply and demand, while also progressing toward our long - term financial targets • 2017 operating margin contraction fully absorbed during the first quarter, with Delta on
Slide 7: June Quarter Marks Return to Margin Expansion
June Quarter Marks Return to Margin Expansion 7 • Unit revenues are tracking at the upper - end of the original guidance of up 1% - 3% driven by improving business yields ‒ Business yields are improving, but remain below historical levels ‒ June month projected at mid - point of quarter guidance, bu
Slide 8: Well positioned to achieve long-term targets
Well positioned to achieve long - term targets given an improving revenue outlook, strong cost discipline, and a balanced capital allocation strategy Operating Margin EPS Growth After - Tax ROIC Cash Flow 2018 – 2020 Framework 16 – 18% 15%+ ~15% $4B adjusted net debt; Pension 80% funded by 2020 $8 -
Slide 9: Room for Further Top-Line Growth
Room for Further Top - Line Growth Solid pipeline of initiatives to drive sustainable revenue premium 9 Better Customer Segmentation International Partnerships Product Investment • Premium products – Delta One, Premium Select, Delta Comfort+ – offer value - adds for customers • Basic Economy domesti
Slide 10: Efficiency Focus Drives Revenue Improvement to Bottom-Line
Efficiency Focus Drives Revenue Improvement to Bottom - Line Delta remains committed to delivering non - fuel cost growth of 2% or less over the long - term 10 • 2013 - 2016 average non - fuel unit cost growth of 2.8% includes 70 bps of pressure from profit sharing • Productivity savings continue to
Slide 11: Strong Cash Generation Differentiates Delta
Strong Cash Generation Differentiates Delta Strong cash generation funds investments in the future, balance sheet de - risking and capital returns to owners 11 $1.3 $1.3 $2.0 $2.9 $2.1 $3.7 $3.2 $- $2 $4 $6 $8 2010 2011 2012 2013 2014 2015 2016 CapEx Operating Cash Flow 2010 - 2016 Capital Expenditu
Slide 12: Continuing to Strengthen the Balance Sheet
Continuing to Strengthen the Balance Sheet Investment grade balance sheet provides Delta with business flexibility and reduced financial risk 12 • Remain committed to $4B adjusted net debt target – Maturity profile for next few years allows Delta to reach target without having to retire debt early •
Slide 13: Commitment To Consistent Shareholder Returns
Commitment To Consistent Shareholder Returns Focused on increasing cash returned through dividends, providing more consistent cash returns for owners 13 • Announced 4 th consecutive 50% increase to the dividend since initiated in 2013 on May 11 – Annual dividend per share will increase to $1.22, fro
Slide 14: Delta: Delivering Sustainable Results
Delta: Delivering Sustainable Results 14 America’s Best Run Airline Leading Partnerships Throughout the World Sustainable Margins, Returns, and Cash Flows Investment Grade Balance Sheet Provides Solid Foundation Setting the standard for financial, operational and service excellence in the airline in
Slide 15: Keep Climbing
KEEP CLIMBING ADELTA 4
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