United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — Continental Airlines — Deutsche Bank Airline Equity Conference (September 2011)
25 slides from United Airlines's conference presentation, Sep 13, 2011
Slide 1: Deutsche Bank Airline Equity Conference
Deutsche Bank Airline Equity Conference United Continental Holdings, Inc. September 13, 2011 Exhibit 99.1
Slide 2: Jeff Smisek, President & Chief Executive Officer
Jeff Smisek President & Chief Executive Officer United Continental Holdings, Inc.
Slide 3: Building the world's leading airline
Building the world’s leading airline Driving towards sufficient, sustained profitability • Global network • Industry leading financials • Capacity discipline • Product investment • Integration • Working together
Slide 4: Hubs in largest U.S. cities
Hubs in 4 largest U.S. cities Source: U.S. Census Bureau
Slide 5: Serving the most destinations in the U.S.
Serving the most destinations in the U.S.
Slide 6: Merger created global network with unsurpassed scope
Merger created global network with unsurpassed scope
Slide 7: Merger created global network with unsurpassed scope
Merger created global network with unsurpassed scope
Slide 8: Serving the right markets, with the right assets
#1 across the Pacific #2 to Latin America #1 in US / Canada #2 across the Atlantic Serving the right markets, with the right assets Rankings by ASMs as of TME 4Q10 Source: Earnings releases and SEC filings.
Slide 9: United is generating industry leading results
United is generating industry leading results Leads network carriers Revenue Leads network carriers Pre-tax Margin Leads network carriers Liquidity Exceeded cost of capital ROIC Metric Result Period: TME 2Q 2011 Industry defined as U.S. global carriers
Slide 10: United leads U.S. network carriers in unit revenue and margin
United leads U.S. network carriers in unit revenue and margin Pre-tax Margin (TME 2Q 2011) 1. Consolidated PRASM numbers for carriers other than UAL adjusted for length of haul versus UAL’s length of haul 2. Excludes special, one-time items and non-cash MTM hedge gains/losses. See non-GAAP reconcili
Slide 11: Committed to strengthening the balance sheet
Committed to strengthening the balance sheet 1. Net debt includes capitalized operating leases. Note: Change in Debt, Capital Leases for the period 10/1/2010 through 6/30/2011; Debt and Capital Lease prepayments for the period 10/1/2010 through 7/21/2011. Source: Earnings releases and SEC filings. L
Slide 12: Focused on generating returns that exceed our cost of capital
Economic Value Added UAL 2010 UAL TME 2Q11 Focused on generating returns that exceed our cost of capital over the business cycle Return on Invested Capital Lower (-) Higher (+) UAL UAL 2006-2010 Fleet Strategy Network / Route Analysis ROIC imbedded in business decisions Product Investment
Slide 13: Flexible fleet permits adjustments for fuel prices
Flexible fleet permits adjustments for fuel prices Mainline Fleet Flexibility Maximum Retirements Maximum Options 2015E Jet-A Fuel Prices LTM ~45% Sept. Sept.
Slide 14: Expect 2012 consolidated capacity to be flat
Expect 2012 consolidated capacity to be flat Reduce domestic capacity while growing international with delivery of 6 B787 Dreamliners Expect to take delivery of 25 new, fuel efficient aircraft in 2012 19 B737-900ER & 6 B787 Installing EconomyPlus on Continental Aircraft in 2012 Up to 5 more inches o
Slide 15: Refreshing aircraft interiors
Refreshing aircraft interiors… Boeing Sky Interior Nearly doubling capacity of Airbus overhead bins
Slide 16: Investing in better seats
…investing in better seats… • Flat bed seats in international premium cabins • Full refresh of p.s. transcontinental fleet • Expanding EconomyPlus to Continental fleet
Slide 17: Redefining United's inflight entertainment experience
…redefining United’s inflight entertainment experience. WiFi & Wireless Streaming Video In seat entertainment
Slide 18: Focused on the Future, Delivering Today
Focused on the Future, Delivering Today Fostered by Open, Honest and Direct Communication 7 Built on Dignity Working VReiessce Together Driven to Perform Powered by Teamwork UNITED
Slide 19: Working Together
Working Together Work Group Flight Attendants Mechanics Passenger Service Agents Determine Union Representation Bargaining Pilots Ramp Agents In joint negotiations Election not yet requested by IAM S-CO: No bargaining required S-UA: In negotiations S-CO: Agreement S-UA: In negotiations S-CO: Agreeme
Slide 20: Merger progressing
Merger progressing On track to achieve 25% of synergies in 2011 Co-branded Credit Card Management Team New Livery Airport Co-location & Branding
Slide 21: Captured more than $130M in synergies year-to-date
Have captured more than $130M in synergies year-to-date On track to achieve 25% of $1.0 – 1.2B run rate synergies in 2011 Integration Success $1.0B - 1.2B Cross-fleeting Completed 1/3 of airport co- locations system-wide Insurance Prescription benefits In-flight magazine Rebranded hubs: ORD, SFO, CL
Slide 22: 2012 synergy capture enabled by integration and technology
2012 synergy capture enabled by integration and technology FAA Certification: Single Operating Certificate Technology: Passenger Service System Expected by year-end 2011 Expected first quarter 2012 Enables: Enables: • Marketing and selling all flights with single code • Joint operations once JCBAs i
Slide 23: United – the world's leading airline
Fly to Win Make Reliability a Reality Working Together Fund the Future United – the world’s leading airline
Slide 24: United Continental Holdings, Inc.
United Continental Holdings, Inc.
Slide 25: Appendix A: Non-GAAP Financial Reconciliation
Appendix A Non-GAAP Financial Reconciliation Note: UAL 3Q 2010 results pro forma. Twelve Months Ended (In $M) 6/30/2011 Pre-tax Margin Earnings / (Loss) before income taxes $857 Add: Special items Adjusted pre-tax Income (Loss) $1,502 Total operating revenue $35,829 Less: Special Items (107) Adjuste
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