EFTA01461862

9 June 2014 Airlines Delta Air Lines, Inc. Model updated:00 June 2014 iiiirin lei the nisei:pie. North America United States Airlines Delta Air Lines, Inc. Reuters: DAL .N Buy Price (8 Jun 141 Target Price 52 Week range Markel Cap (ml 810omborg: DAL US USD 42.23 USD 48.00 USD 17.38 -42.23 USDm 35.642 EURm 2& 132 Ptoftlo Atiaranests Otte Air Imes. mental more than 160 million customers each met. is the largest airline in the vapid With its vast global nintork end IMP of made 800 aircraft Delia and the Delta Connection canners offer sentar to more then 350 destinations in needy 70 countries on sic continents A founding member of the SeyTearn global alliance. Delta participates in one of the tralustrys leeding transatlantic met minutes with Air France-KLM PI Ica Perlormence 40 — SO 30 20 10 0 - 0004 - "1" at '2 Dec 12 Jot 13 Dec 13 On. Ail LM frt. —.SIASOIlitte &wit Honda 444•44EMITDA MAIN Cr myth & Prefilabitily 14 12 10 6 4 2 0 11414, CU411 it 300 250 200 100 100 50 0 .y.144110141 .S01,14:11:1' 70 50 50 40 30 20 10 0 ID 11 12 13 14E ISE ®aided43,44.4v ruin inieren awe. 0,14 Fecal year end 2010 rF manta 2011 2012 2013 2014E 2015E DB EPS IUSIR 171 I 41 1 83 314 305 355 Reported EPS (USD) 1 71 1 43 2 49 12 60 306 355 DPS (USDI 000 000 0.00 012 024 000 8VPS 0.40I 100 -1 67 -2.52 13 72 16130 20 03 Valuation Monet Price/Sales lel 03 0.2 0.2 04 0.9 0.8 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 FCF yield PM 14 5 20 3 2 102 6.7 79 Dividend Weld (%I 00 0.0 0.0 09 0.8 0.0 EV/Selm 06 04 4 07 11 t0 EV/EITITDA 45 4.1 40 4 88 69 EWEBIT 7.1 6.9 83 71 89 78 Income Statement illSDn II Sees 31.755 35,115 38670 37.773 40.309 43,070 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 1,106 1,563 2,675 4,213 4.985 Pre-tax pooM 1,460 Net income 1,445 1,201 2,114 10.813 2.580 3.028 Cioli How Cash flow from operations 2,832 2.834 2,809 4,658 4,675 5,074 Net Capes -1,305 -1.254 -1.903 -2.928 -2.300 -2.250 Free cash flow 1,528 1,580 70t 1.730 2,375 7924 felony rereedabougM Wad 0 0 0 -250 258 0 (*.evidence paid 0 0 0 -102 -253 -304 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 Net cash flow -1.715 -235 -49 592 752 1.171 °wren working apical 664 7.028 348 034 -7,755 834 I (talance .910710.60m) Cash and ash equrvslente 4.019 3,920 3.749 3.925 4,828 5,649 Property. plant & equipment 20.307 20.223 20.713 21.954 22.456 23.019 Goodwill 0 0 0 0 0 0 Other meet, 18.862 19.356 20.088 26.473 28.339 28.407 Total assets 43.188 43,499 44,550 52,252 55,432 57,074 Debt 15,252 13.791 12,709 11.342 9,842 8.342 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 snare Mtn* equal' 897 4.396 .2.131 11.643 14.179 16.903 Nof debt 77,233 hey Ceeepany Mathes 3471 8960 7.417 5274 2883 Seas growth MI 132 106 44 30 89 6.7 CM EPS growth ple) na -17.8 796 71 8 -3.1 16.5 Patitut ratio MI 00 0.0 0.0 09 7.9 0.0 EBfTDA Margin MI 132 107 114 13 7 164 17 3 EBIT Margin 4%) 84 6.4 7.1 93 12.2 13.4 ROE 00 253 I aim VIM 227 4 20.1 19.5 Net debt/ram, / MI fin rot elm 637 369 159 Net interest cover (x) 23 2.1 28 41 8 74 Durrett Anni1/21al EMT margin I%) 84 6.4 7.1 93 12.2 13.4 x Meet turnover X 07 08 08 OS 07 0.8 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 • 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 . ROE I%) 253 1 481.4 -1199 227 4 20.1 19.5 trawlgrowM'SW no no 75. no -97.7 42 X NTA/shara (aig) lx) 07 -0.3 55 IS.) 18.2 • Reported EPS 1.71 I 43 2.49 12 60 305 355 annual growth MY pa 468 748 405 7 -758 765 San* Company am Damn Bank moms Pri ex Page 2 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0124135 SDNY_GM_00270319 EFTA01461862