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Safe Harbor Statement
2
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Actof 1995 that reflect Atlas Air Worldwide Holdings, Inc.’s (AAWW) current views with respect to certain current and futureevents and financial performance. Such forward-looking statements are and will be, as the case may be, subject to manyrisks, uncertainties and factors relating to the operations and business environments of AAWW and its subsidiaries thatmay cause actual results to be materially different from any future results, express or implied, in such forward-lookingstatements.
For additional information, we refer you to the risk factors set forth in the documents filed by AAWW with the Securitiesand Exchange Commission. Other factors and assumptions not identified above are also involved in the preparation offorward-looking statements, and the failure of such other factors and assumptions to be realized may also cause actualresults to differ materially from those discussed.
AAWW assumes no obligation to update the statements in this presentation to reflect actual results, changes inassumptions, or changes in other factors affecting such estimates, other than as required by law.
This presentation also includes some non-GAAP financial measures. You can find our presentations on the most directlycomparable GAAP financial measures calculated in accordance with accounting principles generally accepted in theUnited States and our reconciliations in our earnings release dated May 1, 2014, which is posted on our Web site atwww.atlasair.com.
Today’s AAWW Attendees
Bill FlynnPresident and Chief Executive Officer
John DietrichEVP and Chief Operating Officer
Spencer SchwartzEVP and Chief Financial Officer
Greg GuillaumeVP, Strategic Development
Edward McGarveyVP and Treasurer
Dan LohSenior Director,Investor Relations
Michael SteenEVP and Chief Commercial Officer
Adam KokasEVP, General Counsel,CHRO and Secretary
Keith MayerVP and Controller
Jeff ZeunikVP, Financial Planning and Analysis
Bonnie RodneySenior Director,Marketing and Communications
3
Today’s Agenda
4
Welcome Adam Kokas
Overview Bill Flynn
Commercial Michael Steen
Operations John Dietrich
Financial Spencer Schwartz
Wrap-Up Bill Flynn
Q&A
Lunch
AAWW Investor-Analyst DayJune 6, 2014
L E A D I N Gthe WAY FORWARDBill Flynn
President and Chief Executive Officer
Overview
A Strong Leader in a Strengthening Industry
6
Global AviationAt center of modern, global economy
Long-term growth industry
Efficient access to markets; catalyst to international trade
Contributes to economic and social development
Drives increased competition and innovation
Strategic supply chain component
Over $6 trillion of goods airfreighted annually; ~35% of total world trade
Committedto
Creating, Enhancing andReturning Value to Shareholders.
AtlasRecognized leader in international aviation outsourcing
Resilient business model focused on long-term growth
Strong customer portfolio; creative partner/advisor able to link customers with opportunities
Business initiatives, investments leading the way forward
Uniquely positioned to identify, secure and sustain growth opportunities
Capacity to develop new organizational capabilities aligned with customers’ needs
Significant upside operating leverage
AAWW Leading The Way Forward
Resilient Business Model DrivingMeaningful Earnings and Cash Flow
7
DiversifiedMix
Transformed Business
Thought Leadership
Global Scale and Scope
Solid Financial Structure
Quality Services
LeadingAssets
Key Accomplishments: Foundation for Growth
8
Our BusinessBegins withthe Customer
Meeting/exceeding aggressive objective customer service quality goals Providing superior value-added services An integrated partner, thought leader, advisor – we make customers more profitable
ACMI
Expanded market leadership and customer base, including emerging/expanding markets Added Astral (Africa), Chapman Freeborn (Europe), BST Logistics (Asia);
expanded service with Etihad (Middle East) Placed two returning 747-8Fs in service for DHL Express (Transpacific);
also added 747-400F (Round-the-World)
Dry Leasing Acquired six 777Fs, each with long-term leases with top-tier customers already in place
Added AeroLogic and TNT (Europe) as well as Emirates (Middle East) as customers
CMI Within ACMI, initiated VIP 767 passenger service for MLW Air (U.S.)
Launched two new 767Fs in intra-Asian cargo service for DHL Express
CommercialCharter
Enhanced position as top scheduled charter carrier in South America
Expanded passenger charter operations
Investments Driving Business Resilience
9
$0
$50
$100
$150
$200
$250
$300
$350
$400
2011 2012 2013
Direct Contribution ($ Millions)
Challenging Airfreight Environment
Business Investments:ACMI 747-8Fs, AMC and Commercial Charter Passenger Operations, CMI Operations,767 platform, 777Fs for Dry Leasing
Business Investments:ACMI 747-8Fs, AMC and Commercial Charter Passenger Operations, CMI Operations,767 platform, 777Fs for Dry Leasing
Established Business:Primarily reflects significant declines in AMCand Commercial Charter Cargo Operations
Established Business:Primarily reflects significant declines in AMCand Commercial Charter Cargo Operations
PACTL –
48.6 49.7 49.2 50.2 51.7
20
30
40
50
60
2010 2011 2012 2013E 2014F
Frei
ght T
onne
s(M
illio
ns)
Total Global Airfreight Tonnage
∆Y-o-Y
Airfreight Demand Growing
10
Source: PACTL, ICAO 2010 – 2011, IATA 2012 – 2014F (IATA – June 2014)
19.2% 2.2% (1.0)% 2.0% 3.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0
20
40
60
80
100
120
140
Y-o-
Y G
row
th
Frei
ght T
onne
s(T
hous
ands
)
Shanghai Airport Cargo Traffic (PACTL)
Record monthly tonnage March 2014; strongest first quarter ever
Total global airfreight tonnage growing from record levelsInternational freight tonne kilometers (FTKs) to grow 3.6% in 20142013-2017 international FTK CAGR of 5.0%
–––
IATA
2014 Operational Goals and Objectives
Deliver superior service quality to our customers
Expand our ACMI and CMI business
Maximize our AMC and Commercial Charter business opportunities
Achieve Continuous Improvement savingsand efficiencies
Develop Titan (dry leasing) platform
Execute share repurchase program
In other words… Drive Value for Shareholders
11
Off to Good Start in 2014
AAWW results led by investments to strengthenand diversify business mix…
Positive industry demand trends
Expand aircraft and service offerings and develop new customer relationships
Confident about resilience of transformed business model
Well-positioned to capitalize on market improvement, long-term business growth
12
Continuous Improvement – An Ongoing Journey
13
It’s about: Doing things smarter, faster, more
efficiently and at lower cost
Adding value to the customer
Enhancing operating safety
More thoughtful decisions and processes
Differentiating ourselves from the competition – customer service
Building relationships
All leads to being the customer’sfirst choice
Atlas Strategy for Future Growth
14
We have implemented astrategic plan that… Delivers meaningful earnings
Diversifies the business mix
Leverages asset acquisitions
Generates meaningful cash flow
Future growth requires adisciplined plan that… Builds on strength of core model
Invests in appropriate asset portfolio
Balances operation segment risk/reward profiles
Develops new organizational capabilities
Disciplined Approach to Business Growth
Expand asset-lightbusiness Target strategic
opportunities
Expand asset-lightbusiness Target strategic
opportunities
CMICMI
Focus on scale Non-speculative
investments forregional networks
Focus on scale Non-speculative
investments forregional networks
767s767s
Evaluate opportunities for incremental aircraft that… Provide customers most
efficient assets for their needs
Evaluate opportunities for incremental aircraft that… Provide customers most
efficient assets for their needs
FleetFleet
Focus on freighters Invest in quality assets with
lease commitments
Focus on freighters Invest in quality assets with
lease commitments
Dry LeasingDry Leasing
15
Capital Allocation Strategy
Committed to creating, enhancing, returning value to our stockholders
Repurchased 1.7 million shares, 6.5% of outstanding stock, in 2013
Authorization to repurchaseup to $60 million
Cash prioritization:– Balance sheet maintenance– Business investment – Share repurchases
16
ResilientBusiness Model
AAWW Leading The Way Forward
Executing our planIncreasing contributionfrom business investments… Modern fleet: New 747-8Fs Higher ACMI and CMI volumes Added 777Fs for Dry Leasing Expanding 767 platform Added Passenger flying Operating efficiencies Meaningful earnings Return of capital
…In a long-term growth industry
17
A Strong Leader in a Strengthening Industry
AAWW Investor-Analyst DayJune 6, 2014
L E A D I N Gthe WAY FORWARDMichael Steen
Executive Vice President and Chief Commercial Officer
Commercial
Business Developments
19
Placed one 747-8F with BST Logistics Placed two 747-8Fs, additional
747-400F with DHL Express Placed one 747-400F with Astral
Aviation Extended contract for two 747-400Fs
with Qantas
ACMI
CMI Launched 767-200 VIP operation for MLW Air
Increased Boeing LCF flying to3.1 average aircraft in 1Q14 from1.6 aircraft in 1Q13
Initiated Asia-Pacific CMI flying for DHL
AMC Provided thought leadership to CRAF and USTRANSCOMM
Added new members to FedEx Team (American, US Airways)
Positioned to maximize our participation in CRAF program
Business Developments
20
DryLease
Charters Despite weak market, grew Commercial Charter segment revenues by over 10% to $496 million
Participated in severalhi-tech product launches
38 Bowl Game charters
Acquired six 777-200LRFs Long-term leases attached:
– TNT Express (3)– AeroLogic (2)– Emirates (1)
International Global Airfreight:Growth Returning
21
Source: ICAO 2003 – 2011, IATA 2012 – 2014F (IATA – June 2014)
IATA – Total global airfreight tonnage growing from record levels
IATA expects international freight tonne kilometers (FTKs) flown to grow 3.6% in 2014
IATA forecasts 2013-2017 international FTK CAGR of 5.0%
33.6 36.8 37.7
40.1 42.5 41.1 40.8
48.6 49.7 49.2 50.2 51.7
20
30
40
50
60
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014F
Total Global Airfreight Tonnage Growing from Record Levels
Freight Tonnes(Millions)
6.7% 9.6% 2.5% 6.2% 6.2% (3.2)% (0.8)% 19.2% 2.2% (1.0)% 2.0% 3.0%∆Y-o-Y
Airfreight Demand Growing
Source: PACTL, HKIA
22
Y-o-Y Percentage Growth
PACTL – Record monthly tonnage March 2014; strongest first quarter ever
HKIA – Tonnage up 6.0% in 1Q14; 5.6% year-to-date
Dubai, Frankfurt tonnages also growing; Miami steady at high levels
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0
20
40
60
80
100
120
140
Y-o-
Y G
row
th
Frei
ght T
onne
s(T
hous
ands
)
Shanghai Airport Cargo Traffic (PACTL)
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
400
450
Y-o-
Y G
row
th
Frei
ght T
onne
s(T
hous
ands
)
Hong Kong International Airport Cargo Traffic (HKIA)
Freight Tonnes (Thousands)
The Key Underlying Express Market is Growing
23
Notes: Weighted average of growth rates in international express package volume reported by these express operators.Weighting is 50% DHL, 25% UPS and 25% FedEx. TNT does not report in sufficient detail to include.1Q 2014 figure shown assumes annualized performance
A substantial amount of Atlas’ business is from serving the International Express market The International Express market is showing robust growth; 6% CAGR since 2010 Express growth:
DHL 5-6% 2011-2020; UPS 4-6% in 2014; FedEx “market continues to grow”
100%
107%
114%
121%
127%
90%
95%
100%
105%
110%
115%
120%
125%
130%
135%
2010 2011 2012 2013 1Q 2014
International Express Market – DHL, FedEx and UPSChange in Package Volume (Base year 2010 - 100%)
Global Airfreight Drivers
24
By Sectors Chart Source: Atlas researchBy Region Chart Source: International Air Transport Association – April 2014
Market Size
By Region
41%
26%
14%
14%
Asia Pacific
Europe
North America
Middle East
Latin America 3%Africa 2%
Percent of International Freight Tonne Kilometers (FTKs)By Sectors
Industry Sectors Served by AAWW Customers
17%
17%
16%11%
10%
6%
11%High-Tech Products
Capital Goods
Apparel
Pharma-ceuticals
Intermediate Materials
Automotive
Other Live, 1%
Perishables
Mail & Express 6%
5%
Products Strategic Choice Specialty ConsiderationAirfreight share:
1.5-2.5% global volume, 35% global value
High-value,time-sensitive items; items with short shelf lives
Products/supply chains withjust-in-time delivery requirements
Products with significant security considerations
Global Airfreight Flows – Major Trade LanesAtlas’ global scale connects manufacturing locations and markets worldwide
Allows the maximizing of stack yields by combining airfreight opportunities across multiple trade lanes
2012-2013 Global Air Freight VolumesFigures in ‘000 tonnes
Industrial / Electrical Machinery, Small packages
Flowers, Fish, Vegetables
743743Industrial / Electrical Machinery, Small packages
Flowers, Fish, Vegetables
743
Machinery
Garments, Perishables
1,4241,424Machinery
Garments, Perishables
1,424
Machinery, Auto Parts, Express Pkgs
Apparel
4,2674,267Machinery, Auto Parts, Express Pkgs
Apparel
4,267
Intermediate goods flows (cross-border supply chains)
6,0006,000 Intermediate goods flows (cross-border supply chains)
6,000
Machinery, Perishables
Apparel, Luxury goods
1,1931,193Machinery, Perishables
Apparel, Luxury goods
1,193
Express, other
1,4001,400Express, other
1,400
Oil & gas equip, Machinery, Small packages
Perishables, Apparel,Auto components
130130Oil & gas equip, Machinery, Small packages
Perishables, Apparel,Auto components
130
3,4313,431Telecom Equip., Apparel, Machinery
Machinery, ChemicalsExpress Pkgs
3,431Telecom Equip., Apparel, Machinery
Machinery, ChemicalsExpress Pkgs
8,5008,500Express, other
8,500Express, other
Machinery
Perishables, Apparel
1,0751,075Machinery
Perishables, Apparel
1,075
1,2291,229Industrial / Electrical Machinery, Small packages
Flowers, Fish, Vegetables
1,229Industrial / Electrical Machinery, Small packages
Flowers, Fish, Vegetables
Machinery, Auto parts, Chemicals, Express Pkgs
2,8392,839Machinery, Auto parts, Chemicals, Express Pkgs
2,839
577577Machinery
Apparel, Pharma
577Machinery
Apparel, Pharma
25
The percentage (by weight) of the top twenty categories of goods shipped by air on transpacific lanes has remained almost constant
Reports of Modal Shift Are Overstated
26
Source: Boeing
Air cargo has maintained its share in the key transpacific cargo market
2.0% 1.8%2.0% 2.0%
2.2%
2.0%
1.7%
2.0%
2.0%
2.3%
2.5%2.2%
2.1%
0
10
20
30
40
50
60
70
80
Tonn
es(m
illion
s)
Air Cargo Market Share in the Transpacific Cargo Market
Ocean Cargo Market Share Air Cargo Market Share
Air vs. Ocean?
27
Air continues to be an essential component of the supply chain
Time Critical Products
Reason for Time Criticality
Current Market Dynamics / Drivers
Current Conditionsor Expectations
Perishables Product life Economic conditions…
Disposable income…
Improving
Increasing
High Value (Electronics)
Value of speed to market
Inventory carryingcost/risk
Obsolescence
Interest rates…
Product refresh cycle…
Inventory velocity…
Increase expected
Continued acceleration
Continued increase
High Margin (Fashion)
Stock-out cost
Speed to market
Trends in fashion/retail
Refresh cycles…
Trend response time…
Continued acceleration
Importance of speed is increasing
Industrial Time Critical
Production costripple effects
Sporadic disruptions… (auto component recallvs. redesign)
Focus on supply chain improvements, but continuing need is expected
Optimal Inventory Management is Key
28
Inventory to sales ratio remains low Last time inventory levels were this low, record demand for airfreight followed
Low inventory levels, combined with an improved economy, drive increased airfreight demand
Large Freighter Supply Trends
29
Source: Atlas (May 2014), Ascend (May 2014), Boeing (April 2014), company reports. Excludes parked aircraft, aircraft inExpress operations, combis and tankers; 747-200F total includes -100s and -300s. Boeing April 2014 777F total includes 40 deliveries to express operators (25 with FedEx, 8 with AeroLogic/DHL, 4 for DHL Express, and 3 with TNT).
32
5870
142
28
72
2046 46
133
48
91
21
41
0
20
40
60
80
100
120
140
160
180
Old Technology Sunsetting
747-200FCurrent Technology
747-400SF 747-400FNew Technology
Deliveries Measured
747-8FMD-11F 777FRecent But Challenged
2012 2012 2012 201205/14 05/14 05/14 05/14 04/1404/14
132
69
20122012
Projected production capacity will grow in line with forecast long-term demand growth of ~4% Older technology is nearly gone MD-11F and 747-400 converted freighter fleets are shrinking Large wide-body freighters will continue to dominate the major trade lanes Belly capacity cannot displace freighters
Main Deck to Belly?
30
Sources: ICAO, IATA, A4A, Boeing, Atlas
Main deck air cargo share is stable at ~60% and forecast to remain steady (belly share ~40%)
57%59%
62% 62% 62% 62% 62% 61%58% 59% 59% 60% 61% 60%
0%
10%
20%
30%
40%
50%
60%
70%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2016 2021
Percentage of World RTKs Carried on Freighters
Key Considerations
10% shift of Trans-Pac market from main deckto Pax belly requires50 incremental aircraft
Limitations on slot and route availability; not enough passenger demand; limited access to aircraft
Global average capacity availability on a 777-300ER is 18-20 tonnes*
New Pax 787s fly point-to-point, e.g. London to Phoenix; good for passengers, not cargo
*Considering 28 tonnes max structural cargo capacity availableafter allocating capacity to bags carried
Access to Best-in-Class Fleet toServe Multiple Market Segments
31
B747-8F: Superior technology platform Highest payload and lowest unit cost freighter Best suited to serve the “trunk routes” of global trade
Transpacific, Transatlantic, Round-the-world, Europe-Asia, North-South Americas
B777F: Superior technology platform Superior range profile Aircraft of choice for express operators Allows Integrators to offer intercontinental next day
delivery services
B767-300ERF: Regional work horse Aircraft of choice for regional trade corridors
(e.g., North America, Intra-Asia) Serves both general freight and express networks Increasing number of freighter conversions are
expected of this aircraft type
Integrated Partnership → Our Value Proposition
32
Operations Excellence World’s most efficient fleet of large- and medium-body aircraft Deliver best-in-class operational performance Flawless implementation and execution Delivering lower total operating cost
Commercial Development Leading market knowledge and cross industry presence Interactive dialogue creating opportunities Best-in-class analysis capabilities and consultancy support Proactive network and route assessment
We Live Our Customers' Values They are market leaders representing the entire industry We represent their brand and deliver on their customer commitments We make their operations more flexible and efficient We continuously focus on delivering increased value
Our Customers Reflect Our Focus on Quality
33
Long-term, profitable relationshipsResilient Business Model and Predictable Revenues
Growth-oriented market leaders High degree of customer integration Focused on continuous development and growth Long-term contractual commitments Covering the entire air cargo supply chain
Our strength
Shippers Forwarders / Brokers Airlines Express
Global Operating Network
34
158,937 Total Block Hours Operated in 201325,571 Flights
430 Airports in 124 Countries711 Charters Completed108 Unique Customers
Asian trade lanes lead market growth
Globalization requiresglobal supply chain solutions
Outsourcing becoming more relevantfor both cargo and passenger operators
Rapid market growth inMiddle East, Africa, South America
Expect to grow key businesses:ACMI, CMI, Charter, Scheduled Charter, Dry Leasing
Delivering Value to DHL
35
Joint analysis and modeling
Added a 747-400F, becoming the 10th 747 in the fleet operating for DHL Express
Added 767-300ERFs to feed long-haul and regional APAC network
Added 747-8F based on its capability; resulted in added capacity to supportDHL Express’ TPAC growth
What How
Focus on continued growth and delivering high-quality service
Delivering Value to Etihad
36
Round-the-world operation with 747-8F
Added new customers to Etihad’s networkAdded new markets to Etihad’s network
Routes selected because they were growingDelivered tangible and immediategrowth to Etihad
Solidified relationship as trusted advisor
Network analytics and customer knowledgeWhat How
The IndustryThe Industry AtlasAtlas
The Future
38
Modern, reliable, fuel-efficient fleet
Differentiated fleet solutions:747/777/767
747-8Fs performing well
Strong portfolio of long-term customers committed to further expansion
Unique integrated value proposition
High degree of customer collaboration
Airfreight and integrators integralto global trade growth
Over $6 trillion of goods airfreighted annually; ~35% of total world trade
Higher-growth markets demandlarge wide-body assets
High-value, time-sensitive inventories demand airfreight-based supply chain
Airfreight provides a compellingvalue proposition`
Atlas is uniquely positioned for the future.
AAWW Investor-Analyst DayJune 6, 2014
L E A D I N Gthe WAY FORWARDJohn Dietrich
Executive Vice President and Chief Operating Officer
Operations
Deliver globaltime-definite networks
Innovative, outsourcedaviation solutions
Provide operational excellence and deliver customer value
A catalyst for growth!
Operations – A Competitive Advantage
40
Customer focused
Continuous Improvement
Our Business Starts with the Customer
41
Be the customer’sfirst choice… Deliver exceptional performance
Hold ourselves and vendors to the highest standards
Achieve aggressive reliability targets
Seek continuous improvement in everything we do
Be flexible to meet customer needs
Build strong relationships
18 Boeing “Classics”
20 Boeing 747-400 Freighters
Our Fleet with Titan Aircraft
22 Boeing 747-400 Freighters21 747-400Fs1 747-400BCF
4 Boeing Large Cargo Freighters (LCFs)Customer-owned
9 Boeing 747-8Fs
4 Boeing 767-200/300ER Passenger3 for AMC and Commercial Charter1 Custom Aircraft (customer-owned)
4 Boeing 747-400 Passenger2 Custom Aircraft (customer-owned)2 Boeing 747-400s for AMC and Commercial Charter
7 Boeing 767-200/300 FreightersFor DHL Express service (customer-owned)
1 Boeing 757-200 FreighterShanghai Airlines Cargo
2 Boeing 737-800 Passenger1 Kenya Airways1 Skymark Airlines
6 Boeing 777-200LRF3 TNT, 2 AeroLogic1 Emirates
1 Boeing 737-300 FreighterChina Postal
44
Leveraging Operations
45
2010(747 Pax CMI)
2011(AMC Pax)(747 & 767) 2012/13
(767 Cargo)Domestic and International
2010(LCF)
Diversification & Growth
Safety and Regulatory Compliance
Culture and commitment to safety
“Tone at the Top”
Robust internal and external audits
Proactive relationship with FAA, DOT, TSA and other regulatory authorities
On IATA Operational Safety Audit (IOSA) Registry since 2007
Zero findings in IOSA andDept. of Defense (DOD) biannual audits
Successful customer audits (e.g., Etihad)
Well-positioned for next DoD audit in August 2014
Flight Data Monitoring Program
Aviation Safety Action Program (ASAP)
Investigation Reporting Systems
Regular safety audits
Reduced aircraft damage and personal injuries
Proactive Safety Management System (SMS)
Safety and Compliance Are Top Corporate Priorities
ConsistentlyPositive Audits
46
Security
Our goal is to protect our people, our assets, our information systems and our customers
Highly experienced security team
Strong commitment to physical and cybersecurity
Security resources that cover more than430 destinations
Threat-based risk management program Implemented in coordination with customers Minimizes threats to personnel, company assets,
high-value cargo
Provide thought leadership to ensurecost-efficient and effective regulatory approach
Highly active in Washington, D.C.on policy and rule making initiatives
47
Continuous Improvement isan ongoing journey: Doing things smarter, faster and more efficiently Program in place since 2008
The focus in 2014 is on process improvements: Implemented enhanced Flight Planning System Fuel Management – "Fuel Wise" Crew Management Improve Maintenance and Engineering Processes Revisiting Insource/Outsource Decisions Information Technology
Continuous Improvement
48
Key Milestones
49
Exceeded customer on-time reliability requirements
Successful new customer start-ups– Astral (Africa), Chapman Freeborn (Europe)– Navitrans (China), Etihad (Middle-East)– DHL (Intra-Asia), MLW – (Domestic VIP)
Peak season flying for all major integrators– DHL, UPS and FedEx
Extended Air Force One training contract– Outstanding survey results
Successful Passenger Charter Operations– Sochi charters for NHL Players Association– College Bowl games– First U.S. carrier Hajj pilgrimage flights in years
Why Atlas?We manage diverse, complex and time-definite global networks
We are customer focused and deliver superior performance
Our global scale and operational capabilities are unparalleled
We possess industry-leading operational and technicalsubject-matter expertise
We collaborate with customersto provide value-added solutions and achieve best-in-class resultsWe are driving Continuous Improvement We are strategically positioned and focused on new opportunities to continue to deliver future growth
50
AAWW Investor-Analyst DayJune 6, 2014
L E A D I N Gthe WAY FORWARDSpencer Schwartz
Executive Vice President and Chief Financial Officer
Financial
Focused on Our Shareholders
52
ShareholdersLong-term sustainable performance and value
Diversified and predictable mix
Expand customer base
Savings through efficiencies
Return of capital
Stop providing guidance for peak season performance so early
Effective corporate governance practices
Committedto
Creating,Enhancing andReturning Valueto Shareholders
AtlasAdded nine 747-8Fs
Grew dry leasing with six 777Fs, developed passengeroperations, added 767 flying, expanding CMI
Several new strategic customers
Continuous Improvement
$72 million share repurchase
2014 earnings framework
Enhanced governance and compensation programs
Operating Revenueup 7%Adjusted* Operating Incomeup 60%ACMIDirect Contributionup 13%Adjusted* Earningsper Share$0.45
Results
1Q 2014
53
* See May 1, 2014 press release for non-GAAP reconciliations
ActivitiesThree 777-200ERFs underlong-term dry lease agreements acquired
Ex-Im bond issued on 9th -8F
Placed 9th -8F with BST Logistics
Two out of three returned -8Fs placed immediately
Continuous Improvement focus
Shifting profile of AMC flying Pax BHs flat;
Cargo BHs down 76% Cargo one-ways still declining
Mixed Charter market Increased demand Yields lag behind
Three -8Fs being returned
Conditions
Business initiatives and investments Have transformed the company to deliver
meaningful earnings in any environment
Seasonal business, majority of earnings generated in second half of the year
Two primary considerations: Military demand is declining Commercial airfreight volumes have
been essentially flat last three years
Block Hour total expected to be a few percentage points lower than 2013
> 70% in ACMI< 10% in AMCBalance in Commercial Charter
If airfreight growth returns: Atlas is positioned to be a prime beneficiary
Dry Leasing growing dramatically
If airfreight growth remains flat: Expect results to approximate 2013,
excluding decline from AMC
Maintenance expense ~ $175-$180 million
Depreciation ~ $115-$120 million
~30% effective income tax rate
2014 Framework
54
Capital Allocation – Last 12 Months
55*Includes cash, cash-equivalents, short-term investments, and restricted cash
1Q14 cash balance*: $302 MillionAll debt secured by an aircraft tail2014 estimated tax rate: 30%
Balance Sheet Maintenance
$72 million share repurchase6.5% of outstanding shares$0.18 immediate EPS accretion
Return of Capital
6 B777Fs2 B747-8FsACMI contribution up 13%Dry Lease contribution up dramatically
Business Investment
Evaluating Opportunities
56
KeyConsiderations
Existing business growth Business diversification Strategic fit Feasibility Implementation risks Hurdle rate Cash generation P&L impact IRR ROIC
Dry Leasing Opportunities
57
Solid CreditworthyMarquee Customers
Long LeasesAttached
Excellent Assets
Low-cost, Asset-backedFinancing
Dry leasing
Passenger
New aircraft types747-8F/777F/767
CMI
M&A
Dry leasing
Passenger
New aircraft types747-8F/777F/767
CMI
M&A
Grow RevenueGrow Revenue
Continuous Improvement savings
Lower cost of capital
Attractive financing
Continuous Improvement savings
Lower cost of capital
Attractive financing
Reduce ExpensesReduce Expenses
Share repurchases
EPS Growth
58
* Excludes ETI benefit of 12.3%
Bonus depreciation Dry leasing ETI
Bonus depreciation Dry leasing ETI
Lower TaxesLower Taxes
0%
10%
20%
30%
40%
2011 2012 2013* 2014F
Effective Income Tax Rate
Earnings Outlook
59
Commercial Earnings are Growing
2012 2013 2014F 2015F
OpportunisticAMC Earnings
2011 2012 2013 2014F 2015F
CoreBusiness Earnings
Recognizedfor Driving Cost-Efficiency and Innovation
Financings and Industry Recognition
60
Nine 747-8Fs financed at under 3%
Six 777Fs financed at 4.4% in tax-efficient structures
AFP Pinnacle Award
AAWW Investor-Analyst DayJune 6, 2014
L E A D I N Gthe WAY FORWARDBill Flynn
President and Chief Executive Officer
Wrap-Up
A Strong Leader in a Strengthening Industry
62
Global AviationAt center of modern, global economy
Long-term growth industry
Efficient access to markets; catalyst to international trade
Contributes to economic and social development
Drives increased competition and innovation
Strategic supply chain component
Over $6 trillion of goods airfreighted annually; ~35% of total world trade
Committedto
Creating, Enhancing andReturning Value to Shareholders.
AtlasRecognized leader in international aviation outsourcing
Resilient business model focused on long-term growth
Strong customer portfolio; creative partner/advisor able to link customers with opportunities
Business initiatives, investments leading the way forward
Uniquely positioned to identify, secure and sustain growth opportunities
Capacity to develop new organizational capabilities aligned with customers’ needs
Significant upside operating leverage