United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — IPO Roadshow (May 2019)
21 slides from United Airlines's IPO roadshow presentation, May 7, 2019
Slide 1: $350M Senior Unsecured Notes Offering Investor Presentation
Investor Presentation May 2019 $350M Senior Unsecured Notes Offering Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration Nos. 333-221865 and 333-221865-01 Dated: May 7, 2019
Slide 2: Forward-looking statements
Certain statements included in this presentation are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and
Slide 3: Disclaimer and non-GAAP financial measures
The contents of this presentation are not to be construed as legal, regulatory, business, tax or accounting advice. You should consult your own attorney, business advisor, tax advisor and accountant as to legal, regulatory, business, tax and accounting advice. Under no circumstances is this presenta
Slide 4: Free writing prospectus legend and safe harbor statement
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete informati
Slide 5: Agenda: Transaction Overview, Business Highlights, Financial Update, Q&A
Michael Miller, Investment Banking, Barclays Transaction Overview Pam Hendry, Vice President and Treasurer United Continental Holdings, Inc. Business Highlights and Financial Update Q&A
Slide 6: Transaction overview
Transaction overview Issuer: United Continental Holdings, Inc. (the “Issuer” or the “Company”) Guarantor: United Airlines, Inc. Issue: Senior Unsecured Notes (the “Notes”) Size: $350 million Security: Unsecured Maturity: ~5.7 years (January 15, 2025) Optional Redemption: Non-Call Life Corporate Rati
Slide 7: Sources and Uses of Funds & Pro Forma Capitalization
Sources and Uses of Funds Pro Forma Liquidity Statistics Pro Forma Capitalization Sources and Uses of Funds & Pro Forma Capitalization 1 Does not include approximately $275 million held in escrow at March 31, 2019 relating to United’s Series 2019-1 Class AA and Class A pass-through certificates. Suc
Slide 8: Business Highlights
Business Highlights
Slide 9: Multi-year opportunity ahead for United Airlines
Multi-year opportunity ahead for United Airlines Focus on the customer Great operational performance 2017 2019 + beyond 2018 Launched growth plan and core4 Rebuilding trust 2016 Continuing to earn the trust of employees and customers remains foundational
Slide 10: Momentum continued into 2019
Momentum continued into 2019 Great first-quarter financial and operational results even as the Company navigated some turbulence Achieved peer leading pre-tax margin expansion in the first quarter Building on customer-centric initiatives Encouraged by long-term potential of loyalty program Executing
Slide 11: Record setting operations and improved customer service in 2018
Record setting operations and improved customer service in 2018 Completion Factor1 FY18 D:001 1 Consolidated system flights. Source: masFlight Total Revenue (Billions)
Slide 12: Historic relationship between revenue and fuel
Historic relationship between revenue and fuel Historically, revenue has lagged changes in fuel prices by about one quarter UAL recovered 98% percent of the year-over-year increase in fuel prices in 2018 YOY Pax Revenue vs. YOY Brent Oil $/bbl YOY Industry Pax Revenue (% pts) YOY Brent Oil ($/bbl, 1
Slide 13: Commercial initiatives expected to drive long term impact
Loyalty Revenue Management Commercial initiatives expected to drive long term impact Credit card acquisitions grew double digits in the first quarter of 2019 MileagePlus won best frequent flyer program award from FlyerTalk Enhancements to Gemini and our sales force efforts are expected to continue d
Slide 14: Premium Plus is a key component to United's segmentation strategy
Premium Plus is a key component to United’s segmentation strategy United Premium Plus, our new premium economy product, now for sale with first completed flight at the end of March As of 1Q19, early results show average United Premium Plus fare ~2x a standard Economy fare + ADDED CONVENIENCE + EXTRA
Slide 15: Geographic region overview – consolidated
Geographic region overview – consolidated 1Q PRASM up 1.1% year-over-year Domestic Latin Pacific Atlantic 1 Based on full-year 2Q18-1Q19 capacity. % ASMs1 1Q19 YOY PRASM H/(L) Notes 57% 0.6% Strong close-in bookings 18% (2.8%) Weak economy cabin pricing 16% 4.5% Healthy economy cabin demand across t
Slide 16: Financial Update
Financial Update
Slide 17: Adjusted debt
Adjusted debt1 1Q19 Debt, lease, pension and post-retirement obligations ($B)2 United’s balance sheet is well positioned among peers 1 Amounts adjusted due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842). See Note 1 to the financial statements contained in Part II, Ite
Slide 18: Made significant progress paying down debt and unencumbering assets
Made significant progress paying down debt and unencumbering assets ~ $7.5 1 YE10 Includes long- and short-term debt obligations (net of deferred financing and unamortized debt discount), capital leases, pension obligations and aircraft rent capitalized at seven times; 1Q19 reflects accounting chang
Slide 19: Strong liquidity position
Strong liquidity position Unrestricted liquidity ($B) Increased revolving credit facility to $2B in 1Q17 with the full amount undrawn as of March 31, 2019 Minimum target balance $5.0B We believe $5B - $6B is the optimal liquidity level Absorb seasonality of the business (~$1.5B peak to trough) Meets
Slide 20: United
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Slide 21: Appendix A: reconciliation of GAAP to Non-GAAP financial measures
Appendix A: reconciliation of GAAP to Non-GAAP financial measures United Continental Holdings, Inc. (“UAL”) evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures. UAL provides financial me