Delta Air Lines, Inc. · NYSE:DAL
Delta Air Lines — Investor Presentation (June 2022)
17 slides from Delta Air Lines's investor presentation, June 2022
Slide 1: Delta Air Lines Investor Presentation
DELTA AIR LINES Investor Presentation June 2022
Slide 2: Safe Harbor
Safe Harbor Statements made in this presentation that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered “forward-looking statements” under the Secu
Slide 3: Strategic Priorities On Path To Recovery
Strategic Priorities On Path To Recovery Strengthening Our Trusted Restoring Our Financial Building A Better Future Consumer Brand Performance For Our People And Planet Continue to prioritize health Rebuild scale and drive Put our people first and invest and safety of our customers efficiency
Slide 4: Our Competitive Advantages Have Strengthened
Our Competitive Advantages Have Strengthened People and Global Financial Culture Network Foundation Operational Customer Reliability Loyalty Brand Preference And Advantages Stem From Decade Of Investment And Execution 4
Slide 5: Durable Competitive Advantages Support Leading Profitability
Durable Competitive Advantages Support Leading Profitability Industry Leading Unit Profitability Adj. Opera ting Income per Av a ila ble Sea t Mile (¢) Strong Execution Track Record ~2.70 2.37 Delta Airline Industry Index 1 1.91 ~1.68 Demand Rising for Premium Brands 1.39 1.30 Brand Preference Suppo
Slide 6: Track Record Of Profitable Growth
Track Record Of Profitable Growth Target GDP+ Revenue Growth Prioritize Margin Performance Adj. Tota l Rev enue - $ B illions Adj. Opera ting Ma rg in - % 14.5% Mid- >$50 Teens $42 $36 9.0% $28 0.3% 2009 2010 - 2014 2015 - 2019 2024 Goal 2009 2010 - 2014 2015 - 2019 2024 Goal Average Average Average
Slide 7: Cash Generation Supports Reinvestment And Debt Reduction
Cash Generation Supports Reinvestment And Debt Reduction Generate Strong Cash Flows Reduce Debt Levels Free Ca sh Flow - $ B illions Adj. Net Debt - $ B illions $17 >$4.0 $3.6 $15 $11 $2.1 $8 $0.1 2009 2010 - 2014 2015 - 2019 2024 Goal 2009 2010 - 2014 2015 - 2019 2024 Goal Average Average Average A
Slide 8: Delta Platform Expands Our Revenue Ecosystem
Delta Platform Expands Our Revenue Ecosystem >$50B Growth Opportunities ~$47B Adjusted Loyalty: Investing in product, marketing and capabilities Total accelerates loyalty revenue ~$40B Revenue 39% growth 47% Cargo: Leverage growing widebody capacity while 56% increasing share of premium product 36%
Slide 9: Demand For Premium Product Propels Our Strategy
Demand For Premium Product Propels Our Strategy Premium vs. Main Cabin Growth in Premium Seats 1 Margin Premium Seats Main Cabin Seats 10+ pt. differential in margin Main Cabin Margin Premium Cabin Margin 2009 2021 Future State 9% 27% 30%+ Premium Mix Main to Premium Cabin Margin 9 1 Count of p remi
Slide 10: The Power Of The Delta And American Express Partnership
The Power Of The Delta And American Express Partnership Growth Opportunity Delta-American Express Contribution ($B) Less than 1/3 of our SkyMiles members have ~$7 a Co-Brand credit card >$5 ~$4 ~$4 Profile Of Co-Brand ~$3 Cardholders Trips / Year ~6 Avg. Spend vs. ~ 4-5x Non-Member 2017 2019 2021 20
Slide 11: 2024 Financial Targets And Value Creation Framework
2024 Financial Targets And Value Creation Framework 2024 Financial Targets Adjusted Delta People Total >$50B and Brand Revenue Adj. Earnings >$7.00 Return on per Share 1 Invested Capital Free Thoughtful Industry- Cash Flow >$4B Capital Leading Allocation Margins Balance Adj. Debt / EBITDAR 2.0 to 3.
Slide 12: Confident In Our Positioning And Multi-Year Strategy
Confident In Our Positioning And Multi-Year Strategy Competitive Delta’s actions during the pandemic further strengthened its competitive advantages and 1 enhanced its position as a trusted consumer brand Advantages Industry Delta is leading the industry operationally and financially by demonstratin
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjustments. These reconciliations include certain adjustments to GAAP measures, which are directly related to the impact of COVID-19 and our response. These adjustments are made to provide comparability between the reported periods, if applicable, as indicated below: Restru
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Operating Income per Available Seat Mile ("ASM"). We present this metric because management believes it is helpful to investors to show the company's operating results on unit basis adjusted for certain non-recurring items to provide comparability between reporting
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Operating Margin Year Ended 2010 - 2014 2015 - 2019 December 31, 2009 Average Average Operating margin (1.2)% 6.6% 15.4% Adjusted for: Restructuring charges 1.5 1.3 0.0 MTM adjustments and settlements on hedges - 1.0 (1.0) Third-party refinery sales - 0.0 0.1 Adjust
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is defined as net cash fro