Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Raymond James 41st Annual Institutional Investors Conference (March 2020)
13 slides from Delta Air Lines's conference presentation, Mar 2, 2020
Slide 1: Delta Air Lines
Delta Air Lines Raymond James 41st Annual Institutional Investors Conference Paul Jacobson, Chief Financial Officer March 2, 2020
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995
Slide 3: Momentum Building Following Transformational Decade
Momentum Building Following Transformational Decade Established Strengthened Accelerating Solid Foundation Competitive Advantages Our Momentum 2009 - 2013 2014 - 2018 2019 and beyond • Created more customer- • Pioneered multi-class product • Diversifying revenue stream focused operation segmentation
Slide 4: Strong 2019 Financial Performance Caps Decade of Transformation
Strong 2019 Financial Performance Caps Decade of Transformation Pre-Tax Operating Returns to Profit Cash Flow Shareholders $6.2B $8.5B $3.0B $5.3B $6.8B $2.4B $2.8B $1.5B $0B 2010 2017 2019 2010 2017 2019 2010 2017 2019 Consistent Targeting ~70% Fifth consecutive year reinvestment and of FCF to owne
Slide 5: Building Durability through Healthy and Diverse Revenue Streams
Building Durability through Healthy and Diverse Revenue Streams Corporate Revenue Mix by Sector Industry Top Sectors Ancillary 1. Manufacturing (16%) 2019 and Cargo Travel 2. Financial Services (14%) $47B 6% Related Services 3. Technology (14%) 5% Loyalty 6% Program Ticket Revenue Mix by Entity Geog
Slide 6: Committing $1 Billion Over Next Ten Years to Become First Carbon Neutral Airline Globally
Committing $1 Billion Over Next Ten Years to Become First Carbon Neutral Airline Globally • Investment will drive innovation, advance clean air travel technologies, accelerate the reduction of carbon emissions and waste, and establish new projects to mitigate the balance of emissions • Efforts towar
Slide 7: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities 1 Reinvest in the Business 2 Maintain Investment Grade Balance Sheet 3 Return Cash to Owners Renewing Delta’s fleet with Targeting adjusted debt to Consistently returning cash to more efficient next-generation EBITDAR range of 1.5x - shareholders, targeting 70%
Slide 8: Our Investments are Driving Strong Returns
Our Investments are Driving Strong Returns ROIC and Invested Capital ~16% • Approximately 500 basis points of ROIC improvement on a $17 billion increase in ~11% $34B invested capital base since 2010 • Compounding benefits of reinvestment $17B support long-term growth 2010 2019 Invested Capital ROIC,
Slide 9: Delta is a Compelling Long-Term Investment Opportunity
INVESTMENT THESIS Delta is a Compelling Long-Term Investment Opportunity Powerful Brand Unmatched Strong Partner Proven Track Record With Industry- Competitive Portfolio and of Execution & leading Returns Advantages Global Scale Reinvestment Record customer Engaged and Global relevance with
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Financial Measures The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate due to rounding. Delta sometimes uses information ("non-GAAP financial measures"
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations Pre-Tax Income and Net Income, Adjusted We adjust pre-tax income and net income for the following items to determine pre-tax income and net income, adjusted for the reasons described below. We include the income tax effect of adjustments when presenting net income, adjusted.
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Cash Flow, Adjusted We present operating cash flow, adjusted because management believes adjusting for the following items provides a more meaningful measure for investors. Adjustments include: Hedge deferrals, including early settlements. During the March 2015 qua
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations After-Tax Return on Invested Capital We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital as a measure against the industry. Return on inve
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