EFTA01461862.pdf

9 June 2014 Airlines Delta Air Lines, Inc. Model updated:00 June 2014 Fecal year end 2010 2011 2012 2013 2014E 2015E iiiirinlei the nisei:pie. rFmanta North America DB EPS IUSIR 171 I 41 1 83 314 305 355 Reported EPS (USD) 1 71 1 43 2 49 12 60 306 355 United States DPS (USDI 000 000 0.00 012 024 000 Airlines 8VPS 0.40I 100 -1 67 -2.52 13 72 16130 20 03 Valuation Monet Delta Air Lines, Inc. Price/Sales lel 03 0.2 0.2 04 0.9 0.8 Reuters: DAL .N 810omborg: DAL US P/E (DEI) lx) 74 66 55 64 139 11 9 p/E (Reported/ Ix) 74 6.5 40 16 13.9 11.9 MU Or/ 11 7 in nm 20 25 21 Buy FCF yield PM 14 5 20 3 2 102 6.7 79 Price (8 Jun 141 USD 42.23 Dividend Weld (%I 00 0.0 0.0 09 0.8 0.0 Target Price USD 48.00 EV/Selm 06 04 4 07 11 t0 52 Week range USD 17.38 -42.23 EV/EITITDA 45 4.1 40 4 88 69 EWEBIT 7.1 6.9 83 71 89 78 Markel Cap (ml USDm 35.642 Income Statement illSDnII EURm 2& 132 Sees 31.755 35,115 38670 37.773 40.309 43,070 Ptoftlo EMMA 4.178 3.788 4.186 5.194 8,823 7.471 EMT 2.887 2.243 2.801 3.528 4.034 6.775 Atiaranests Otte Air Imes. mental more than 160 Pre-tax pooM 1,460 1,106 1,563 2,675 4,213 4.985 million customers each met. is the largest airline in the Net income 1,201 2,114 3.028 vapid With its vast global nintork end IMP of made 800 1,445 10.813 2.580 aircraft Delia and the Delta Connection canners offer Cioli How sentar to more then 350 destinations in needy 70 countries on sic continents A founding member of the Cash flow from operations 2,832 2.834 2,809 4,658 4,675 5,074 SeyTearn global alliance. Delta participates in one of the Net Capes -1,305 -1.254 -1.903 -2.928 -2.300 -2.250 tralustrys leeding transatlantic met minutes with Air Free cash flow 1,528 1,580 70t 1.730 2,375 7924 France-KLM felony rereedabougM Wad 0 0 0 -250 258 0 (*.evidence paid 0 0 0 -102 -253 -304 PIIca Perlormence Net incadeCI al borrowings -2.592 -1,777 -899 -1.193 -1,500 -1.500 Other imastingatencing cash lbws 449 a 150 397 28 ISO SO Net cash flow -1.715 -235 -49 592 752 1.171 40 — °wren working apical 664 7.028 348 034 -7,755 834 30 - - 0004"1" I (talance .910710.60m) 20 Cash and ash equrvslente 4.019 3,920 3.749 3.925 4,828 5,649 10 Property. plant & equipment 20.307 20.223 20.713 21.954 22.456 23.019 0 Goodwill 0 0 0 0 0 0 at '2 Dec 12 Jot 13 Dec 13 Other meet, 18.862 19.356 20.088 26.473 28.339 28.407 On. Ail LM frt. Total assets 43.188 43,499 44,550 52,252 55,432 57,074 —.SIASOIlitte &wit Debt 15,252 13.791 12,709 11.342 9,842 8.342 Honda Other 1111044104 27.039 31,104 33.972 29.267 31.411 31.829 Total liabilities 42.291 44.895 46.681 40.009 41,253 40,171 Total snareMtn* equal' 897 4.396 .2.131 11.643 14.179 16.903 Nof debt 77,233 3471 8960 7.417 5274 2883 hey Ceeepany Mathes Seas growth MI 132 106 44 30 89 6.7 CM EPS growth ple) na -17.8 796 71 8 -3.1 16.5 it Patitut ratio MI 00 0.0 0.0 09 7.9 0.0 444•44EMITDA MAIN EBfTDA Margin MI 132 107 114 13 7 164 17 3 EBIT Margin 4%) 84 6.4 7.1 93 12.2 13.4 Cr myth & Prefilabitily ROE 00 253 I aim VIM 227 4 20.1 19.5 14 300 Net debt/ram, / MI fin rot elm 637 369 159 12 250 Net interest cover (x) 23 2.1 28 41 8 74 10 200 100 Durrett Anni12/1al 6 100 4 EMT margin I%) 84 6.4 7.1 93 12.2 13.4 2 50 x Meet turnover X 07 08 08 OS 07 0.8 0 0 X Finential coal ratio PI 06 0.5 06 08 0.8 0.9 x Tex end other effects (x) 10 1.0 13 40 0.8 0.8 11414, CU411 .y.144110141 • ROA (poet tax) OM 33 2.8 42 22 3 4.8 5,4 x Financial leverage lx) 759 -1737 -250 10 2 42 36 .S01,14:11:1' . ROE I%) 253 1 481.4 -1199 227 4 20.1 19.5 trawlgrowM'SW no no 75. no -97.7 42 70 X NTA/shara (aig) lx) 07 -0.3 55 IS.) 18.2 50 50 • Reported EPS 1.71 I 43 2.49 12 60 305 355 40 pa 748 30 annual growth MY 468 405 7 -758 765 20 San* Company am Damn Bank moms 10 0 ID 11 12 13 14E ISE ®aided43,44.4v ruin inieren awe. 0,14 Pri ex Page 2 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124135 CONFIDENTIAL SDNY_GM_00270319 EFTA01461862