Continental Ag · XETR:CON
Continental — Continental Airlines — Shareholder Meeting (June 2008)
23 slides from Continental's shareholder meeting presentation, Jun 11, 2008
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders June 11, 2008
Slide 2: Jeff Smisek, President
JEFF SMISEK PRESIDENT
Slide 3: Accomplishments
Accomplishments s s and s s Cla ice No. 1 W s in e e r v w ) orld’s M l Bu s s S R o F O ost Adm o n a C la i n a R T U NE ired Air n a t i ir s t e a rs M agazine line n te r t ic F 0 Y ( 5 Y ear s I s ( 1 #1 D o me aveler c i n a R ow ) #1 s t T r ac ifi n d é Na n s -P es Co d Tra Airlin w) i c a
Slide 4: Go Forward Plan
FLY TO WIN GO FORWARD PLAN Make Reliability Fly to Win Fund the Future Working Together a Reality Increase Maintain our Deliver an Keep profitability in liquidity and industry leading Continental the new use our assets product that is a great place to industry to help secure clean, safe and work env
Slide 5: New International Destinations
FLY TO WIN New International Destinations Mumbai (BOM) London (LHR) 4
Slide 6: International Destinations Year End 2007
“Other airlines fly all over the world. FLY TO WIN They just don’t land in as many places.” International Destinations Year End 2007 144 115 97 58 53 51 Continental Delta American US Airways Northwest United Includes all regional & connection flying 5
Slide 7: Well Balanced Global Network
FLY TO WIN Well Balanced Global Network 100% Domestic International 80% 80% 64% 61% 58% 59% 60% 52% Capacity 48% 42% 41% 39% 36% 40% 20% 20% 0% Continental American Delta Northwest United US Airways Source: 2007 company traffic reports (mainline) 6
Slide 8: 2007 Pre-Tax Margin
FUND THE FUTURE 2007 Pre-Tax Margin 10.00% 9.00% 8.00% 7.00% 5.78% Pre-Tax Margin (%) 6.00% 5.00% 3.81% 3.75% 4.00% 3.18% 2.64% 3.00% 1.88% 2.00% 1.00% 0.00% Northwest Continental US Airways Delta United American Pre-Tax ($MM) 724 542 439 610 531 429 Excludes reorganization and special items 7
Slide 9: Year End Unrestricted Cash and Short Term Investments
FUND THE FUTURE Year End Unrestricted Cash and Short Term Investments $3.0 $2.8 $2.5 $2.5 $2.0 $2.0 ($Billions) $1.4 $1.5 $1.5 $1.0 $0.5 $0.0 2003 2004 2005 2006 2007 8
Slide 10: The Fleet For the Mission
FUND THE FUTURE The Fleet For the Mission z We have the youngest and most fuel efficient fleet among the major network carriers Mission Capability B737 Domestic / International (Latin and Canada) B757 Domestic / International B767 Medium and Long Haul International B777 Long Haul International z 100
Slide 11: Continental Fuel Efficiency by Aircraft Type
MAKE RELIABILITY A REALITY Continental Fuel Efficiency by Aircraft Type Gallons per seat flown 1,000 miles 30.0 27.9 25.0 Continental 18.9 19.0 20.0 18.3 17.3 15.2 15.6 14.5 14.6 15.0 13.1 10.0 737-8/9 757-2/3 737-700 767-400 777-200 737-300 767-200 737-500 MD80 DC9 Source: Form 41 Data (LTM4Q07) 10
Slide 12: Continental is Committed to the Environment
MAKE RELIABILITY A REALITY Continental is Committed to the Environment z Named FORTUNE magazine’s one of ten “Green Giants” z Improved fuel efficiency z Electrified ground service equipment z Recycling program z Paperless boarding z Testing biofuels 11
Slide 13: 10-Year Average On-Time Percentage Rate
MAKE RELIABILITY A REALITY 10-Year Average On-Time Percentage Rate (January 1998 - December 2007) 80% 79% 78.2% 77.9% 78% 77.3% 77.0% 77% 76.0% 76% 75.4% 75% 74% Continental Delta American Northwest US Airways United z 2007 total on-time incentives: $33MM z On-time incentives 10 out of 12 months, to
Slide 14: 10-Year Average Mishandled Baggage Rate
MAKE RELIABILITY A REALITY 10-Year Average Mishandled Baggage Rate (January 1998 - December 2007) 6.0 5.4 5.4 5.5 5.3 5.1 5.0 4.8 4.5 4.2 4.0 Continental Northwest Delta US Airways United American Claims per 1,000 Enplaned Passengers Derived from D.O.T. Air Traffic Consumer Reports US Airways includ
Slide 15: 2007 Profit Sharing Paid
WORKING TOGETHER 2007 Profit Sharing Paid $175 $158 $158 $150 $110 $125 ($Millions) $100 $80 $75 $49 $50 $25 $0 $0 Continental Delta United Northwest US Airways American American made a one-time payment of $800 to most employees 14
Slide 16: Working Together
WORKING TOGETHER 15 Continental Airlines B) F
Slide 17: Larry Kellner, Chairman & Chief Executive Officer
LARRY KELLNER CHAIRMAN & CHIEF EXECUTIVE OFFICER
Slide 18: Jet Fuel - A New Reality
JET FUEL - A NEW REALITY Jet Fuel Price ($/bbl) $180 $165.6 $160 Crack $31.2 spread $140 $128.1 $116.4 $120 $27.1 $95.0 $16.8 $89.6 $100 $84.4 $14.8 $69.9 $18.5 Price $80 $18.5 of WTI $11.6 $134.4 Oil $60 $99.6 $101.0 $80.2 $65.9 $71.1 $40 $58.3 $20 $0 3-Jan-07 2-Apr-07 2-Jul-07 1-Oct-07 2-Jan-08 1-
Slide 19: Market Response: Mainline Domestic Capacity
MARKET RESPONSE 4Q08E vs. 4Q07 Mainline Domestic Capacity 1.0% (1.0%) (3.0%) (5.0%) % YOY (7.0%) (9.0%) (11.0%) (11.0%) (11.0%) (11.5%) (13.0%) (14.0%) (15.0%) Delta Continental American United Source: SEC Filings, earnings releases, and earnings calls. United reflects North America 18 When range is
Slide 20: Work Hard, Fly Right: Retiring Least Efficient Aircraft
WORK HARD, FLY RIGHT z Accelerating retirement of least efficient narrowbody aircraft z Targeting significant revenue and cost savings initiatives z Negotiated new agreement with ExpressJet 19
Slide 21: Work Hard, Fly Right
WORK HARD, FLY RIGHT z Professional, dedicated team of employees with a strong company culture that is second to none z Consistent, reliable product z Strategically located modern hub facilities z Modern, fuel-efficient fleet z Strong, balanced global network z Environmentally friendly and active in
Slide 22: Non-GAAP to GAAP Reconciliations
Non-GAAP to GAAP Reconciliations
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Twelve Months Ended December 31, 2007 Pre-Tax Margin: Pre-Tax Margin formula: Profit/(Loss) Before Income Taxes / Operating Revenue ($Millions) Northwest Continental US Airways Delta United American Pre-Tax Income / (Loss) - GAAP 2,315 566 434 1,995 695 504 Special It
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