United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — Continental Airlines — Credit Suisse Global Credit Products Conference 2012
21 slides from United Airlines's conference presentation, Oct 5, 2012
Slide 1: Credit Suisse Global Credit Products Conference
Credit Suisse Global Credit Products Conference United Continental Holdings, Inc. October 5, 2012 Exhibit 99.1
Slide 2: Ted North, Managing Director – Corporate Finance
Ted North Managing Director – Corporate Finance
Slide 3: United is transforming
United is transforming Broad, business-centric network Capacity discipline & business flexibility Strengthening the balance sheet Investing in our people, customers, products & technology Growing high-margin businesses We are building a new airline
Slide 4: The world's best network
The world’s best network Serving the most destinations of any global carrier Hubs in the four largest U.S. cities 50 of Fortune 100 companies headquartered in hubs Rankings for US carriers by TME 2Q 2012 scheduled ASMs Source: OAG Best Network for Business Customers
Slide 5: Industry-leading unit revenue
Industry-leading unit revenue 1. Consolidated PRASM numbers for carriers other than UAL adjusted for length of haul versus UAL’s length of haul Source: Earnings releases and SEC filings TME 2Q 2012 PRASM (in cents) 8.86 10.60 11.94 12.06 13.12
Slide 6: Generating solid earnings despite elevated fuel prices
1. Source: Kiodex – Platts US Gulf Coast Jet 2. Source: Earnings releases and SEC filings; Excludes special, one-time items. See non-GAAP reconciliation in Appendix B; Results prior to 4Q10 proforma Pre-tax Earnings/(Loss) ($B) $1.1 ($2.3) TME 2Q12 Average Jet A ($/bbl) TME 2Q12 $127.4 $124.7 Genera
Slide 7: ROIC goal of 10% over the business cycle
ROIC goal of 10% over the business cycle Return on Invested Capital Note: Results proforma prior to 4Q 2010; ROIC calculation available in Appendix A and on our website: http//:ir.united.com Source: SEC filings 1. Source: Kiodex – Platts US Gulf Coast Jet 10.3% 11.3% 7% 8% 9% 10% 11% 12% 13% 14% TME
Slide 8: Maintaining capacity discipline is core to our long-term success
Note: Rolling consolidated capacity for prior twelve months; industry includes AMR, DAL, LUV and LCC; capacity proforma for merged carriers Source: Earnings releases and SEC filings (10%) (5%) 0% 5% Industry ex-UAL 4Q08 4Q10 4Q09 2Q12 4Q06 4Q07 4Q11 Maintaining capacity discipline is core to our lon
Slide 9: Consolidated Capacity Trend
Source: SEC filings and investor updates Consolidated Capacity Trend (Year-over-Year % Change in ASMs) (0.2%) (1.75%) 2012E (0.75%) 1.1% Expect FY 2013 consolidated capacity to decline approximately 1% year-over-year Reducing capacity in response to economic outlook Results proforma prior to 4Q 2010
Slide 10: Solid liquidity position
Solid liquidity position 1. Cash, short-term investments and undrawn credit facilities divided by TME 2Q revenue Source: SEC filings TME 2Q 2012 Liquidity (as % of revenue) 14.6% 18.5% 20.0% 21.8% 23.8%
Slide 11: Committed to strengthening the balance sheet
12.0 15.9 13.5 Note: Results prior to 4Q 2010 pro forma Source: Earnings releases, SEC filings and July 2012 Investor Update Net Debt ($B) Net Debt incl. Pension ($B) 2012 interest expense expected to decline more than 20% vs. 2010 Committed to strengthening the balance sheet $12.0 $ 13.5 $ 15.9 ($3
Slide 12: Non-aircraft debt coming due through 2016
0.7 0.9 1.0 0.8 0.8 0.4 0.1 0.2 0.1 0.3 $4B of non-aircraft debt coming due through 2016 Scheduled Debt & Capital Lease Payments ($B) 0.4 1.0 1.2 1.0 $1.1 0.0 $2.1 $2.3 $1.9 $1.5 Aircraft Amortization Non-Aircraft Aircraft Maturities Note: As of September 26, 2012; Includes 2012-2 EETC financing
Slide 13: Opportunity to increase unencumbered asset base
Opportunity to increase unencumbered asset base $11.3 $7.7 $5.1 $3.0 Potential Unencumbered Asset Balance ($B) Note: Cumulative total of assets generally accepted as collateral in financing transactions and not then encumbered; Asset values derived from historical appraisals and company estimates; 2
Slide 14: Investing in our fleet
Boeing 737 MAX 9 Highly efficient Great fit for network Unrivaled customer experience Boeing 787 Dreamliner Investing in our fleet
Slide 15: Record low coupon in September 2012 EETC financing
Record low coupon in September 2012 EETC financing Finances aircraft to be delivered November – July 18 Boeing 737-900ER 3 Boeing 787-8 Dreamliners 1. Without the benefit of an insurance policy to support repayment of principal LTV of 55.0% $712M of proceeds 4% fixed-rate coupon, lowest in A Tranche
Slide 16: Investing in our product and technology
New United Club in ORD T-2 Boeing Sky Interior Global Satellite Wi-Fi Investing in our product and technology Enhanced Agent Interface
Slide 17: Growing high margin components of our business
Growing high margin components of our business 90 million members worldwide 100+ partnerships to earn Unmatched redemption opportunities Up to 5 more inches of space in coach Ancillary Revenue Economy Plus Value-add products & services Dynamic pricing Improved CRM targeting ®
Slide 18: We are a customer service business
We are a customer service business Getting the basics right Working Together culture Direct, open & honest communication Dignity & respect
Slide 19: United is transforming
United is transforming We are building a new airline Broad, business-centric network Capacity discipline & business flexibility Strengthening the balance sheet Investing in our people, customers, products & technology Growing high-margin businesses
Slide 20: Appendix A: ROIC calculation
Appendix A: ROIC calculation TME 2Q12 $1,146 (6) $2,666 TME 2Q12 $38,726 7,077 (19,863) $25,940 10.3% Source: Earnings releases and SEC filings; 1.Excludes special, one-time items. See non-GAAP reconciliation in Appendix B 2.Interest components of NOPAT include tax effect at annualized cash tax rate
Slide 21: Appendix B: Non-GAAP Financial Reconciliation
Appendix B: Non-GAAP Financial Reconciliation S-UA S-CO UAL UAL ($5,427) ($695) ($6,122) $407 3,654 3,835 ($1,773) ($514) ($2,287) $1,146 $20,194 $15,241 $35,435 $37,640 (8.8%) (3.4%) (6.5%) 3.0% Note: Non-GAAP financial measures are presented because they provide management and investors with the a
Continental Airlines — Credit Suisse Global Credit Products Conference 2012 on 6ix