Worldwide Celebrating 25 Years in Anchorage August 2017
Worldwide Ownership 100% Ownership 51% (49% DHL) Ownership 100% Ownership 100% We manage diverse, complex and time-definite global networks We deliver superior performance and value-added solutions across our business segments We manage a world-class fleet to service multiple market segments We are strategically positioned in a strengthening market and focused on new opportunities to continue to deliver future growth 2
Our Current Fleet July 2017 Total Fleet: 95 Operating Fleet: 86 42 Boeing 747s 10 747-8Fs 24 747-400Fs 4 747-400 passenger 4 Boeing Large Cargo Freighters (LCFs) 35 Boeing 767/757s 28 767-200/300Fs* 6 767-200/300 passenger 1 757-200 freighter Titan 11 Boeing 777s 5 CMI 777Fs 6 Titan 777Fs 7 Boeing 737s 5 737-400Fs 1 737-300F Titan 1 737-800 passenger Titan Heading to More than 100 aircraft with Over 40 B767s * Includes to-be-converted aircraft 3
Global Operating Network LIM EZE Astral Boeing BST DHL Etihad Qantas Panalpina SonAir Scheduled Service 210,444 Total Block Hours Operated in 2016* 39,882 Flights* 425 Airports in 119 Countries 730 Charters Completed 80+ Unique Customers * Totals including Southern Air, acquired April 7, 2016 4
The Atlas Story in Anchorage Atlas history starts in Anchorage with our first customer- China Airlines We ve continued to expand and have grown operations significantly over the past several years Over 120 employees reside in Alaska Anchorage is Atlas largest 747 crew base with 377 of 1,800 pilots based in ANC The company purchases between 1,500 and 2,000 hotel rooms in Anchorage on a monthly basis 5
Anchorage - Linking the Global Supply Chain Natural geographic advantage Within 9.5 hours of 90% of major commercial centers Halfway point between US East Coast and Asia Alaskan commitment to cargo industry Improved infrastructure at ANC Cargo transfer rights Maintain a favorable business and regulatory environment 6
Anchorage Customers 7
Anchorage Partners 8
Year-to-Year - Arrivals and Departures PANC/ANC Operations # of flights (thousands) 2012 2013 2014 2015 2016 DEP 2440 2493 2757 3052 2957 ARR 2439 2491 2757 3052 2962 TOTAL FLIGHTS 4579 4984 5514 6104 5919 9
Year-to-Year Fuel Uplift 70,000,000 PANC/ANC Fuel Uplift (USG) 60,000,000 U.S. Gallons (Million(s)) 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2013 2014 2015 2016 2013 2014 2015 2016 FUEL UPLIFT (USG) 52,142.17 57,783,815 63,637,654 60,032,508 10
s Arrival and Departure Fees at ANC Fees 2012 2013 2014 2015 2016 Landing Fee 5,094,720 5,201,208 5,756,616 6,372,576 6,184,656 Aircraft Parking Fee 800,393 817,122 904,378 1,001,147 971,625 Totals $5,898,113 $6,018,330 $6,660,994 $7,373,723 $7,156,281 11
Megatrends Driving Airfreight Growth Age of Urbanization Increases in urban consumption by the growing middle class will drive increasing trade Accelerated Technology New mobile devices and electronics drive airfreight demand Reduced product renewal cycles for different product types requires a faster supply chain, with significant use of airfreight Greater Global Connections Airfreight network strength and flexibility has significant value in an increasingly interconnected global marketplace Changing Demographics Demographic trends suggest significant growth in Asia, Africa and South America Trends will require an efficient Air network to serve effectively Source: McKinsey Global Institute. 12
Freighters are Critical to Compete in Air Cargo Markets Especially in Time-Definite Networks Airlines operating freighters generate 90% of industry revenues Total $83.4B $8.5B $8.5B $33.6B $32.8B 13 Sources: Flight Global, U.S. DOT F41, airline reports, and Boeing estimates (2015 data)
Global Airfreight Industry Performance Trends Global Airfreight Market International freight tonne kilometers (FTKs) flown up 3.8% in 2016 Very strong FTK growth anticipated in 2017 PMI Index at 55 for 2017 and semi-conductor sales +18% for 2017 Total Global Airfreight Tonnage Growing from Record Levels Freight Tonnes (Millions) Global Express Market The International Express market is showing robust growth 5.8% CAGR since 2011 vs. nominal CAGR for International FTK s The Express segment benefiting from the e-commerce growth International Express Market DHL, FedEx and UPS Change in Demand (Base year 2011-100%) 2.5% 6.4% 4.6% (0.7)% (8.9)% 19.5)% 0.4% (1.0)% 1.4% 4.0% 1.5% 3.3% >7.5% (F) Global e-commerce Market Global e-commerce Estimates ($ Billion) Supply vs. Demand FTK and AFTK Growth Overall e-commerce market penetration is still low Sources: IATA, ICAO, Euromonitor, Forrester, emarketer, BofA Merrill Lynch Global Research estimates, Company Public Reports 14
e-commerce market in Asia will grow e-commerce Penetration (as percentage of global retail sales) e-commerce only accounts for ~10% of global retail sales US e-commerce spend $385B in 2016 forecasted to grow to $600B by 2020 China: 700M internet users 50% mobile penetration 10% e-commerce penetration USA: 237M internet users 73% mobile penetration 9% e-commerce penetration Source: Forrester, Statista, emarketer India: 300M internet users 25% mobile penetration 2% e-commerce penetration 15
Thank You 16