Aercap Holdings N.v. · NYSE:AER
Aercap — Q2 2020 Earnings Presentation
19 slides from Aercap's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results AerCap Holdings N.V. July 29, 2020 D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 2: Disclaimer Including Forward Looking Statements & Safe Harbor
Disclaimer Including Forward Looking Statements & Safe Harbor This presentation contains certain statements, estimates and forecasts with Accordingly, you should not rely upon forward-looking statements as a respect to future performance and events. These statements, estimates and prediction of actu
Slide 3: Global Air Travel Recovery Underway
Global Air Travel Recovery Underway ASIA EUROPE U.S. PACIFIC European traffic reached U.S. daily passengers In China, daily domestic 16,300 flights on July 24, surpassed 750,000 in flights surpassed 11,500 the highest level since July, for the first time on July 24, the highest March since Mar
Slide 4: Recent Developments
Recent Developments Fleet Production Government Reductions Cuts Support ~$130 billion of support to Airlines have announced ~33% cut in OEM airlines in 74 countries to 950 aircraft retirements production rates date, half of which is not so far Coupled with MAX delays, required to be repaid
Slide 5: Recent AerCap Actions
Recent AerCap Actions Working Enhancing Working with the Our with Our OEMs Liquidity Customers 2020 and 2021 cash capex $3 billion of new funding ~$430 million of deferrals reduced by ~$5.3 billion raised in 2Q 2020 as of June 30, 2020, Ongoing discussions with Sources-to-uses representing
Slide 6: Significant Reduction in Capital Expenditures
Significant Reduction in Capital Expenditures 2020 and 2021 aggregate cash capex reduced by ~$5.3 billion, or ~60% Cash Capital Expenditures 2020 capex reduced by >65%, ~$0.4 2020 2021 billion remaining 5.0 5.0 4.5 4.5 2021 capex reduced by ~55% to ~$2.2 4.0 4.0 billion 3.5 3.5 ~55% 3.0 3.0 2.5
Slide 7: Net Income and Earnings Per Share
Net Income and Earnings Per Share 2Q 2020 2Q 2019 1H 2020 1H 2019 Net Income ($ million) 246 331 523 566 Diluted Earnings Per Share ($) 1.92 2.42 4.06 4.09 Key Highlights • The decrease in net income was primarily driven by lower basic lease rents as well as lower net gain on sale of assets • The de
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 2Q 2020 2Q 2019 Basic Lease Rents 948 1,077 Maintenance Rents and Other Receipts 224 109 Net Gain on Sale of Assets 10 78 Other Income 15 17 Total Revenues and Other Income 1,197 1,281 • Basic lease rents decreased primarily due to lease restructurings, transiti
Slide 9: Expenses
Expenses ($ million) 2Q 2020 2Q 2019 Selling, General & Administrative Expenses 53 65 Maintenance Rights Expense 12 16 Other Leasing Costs 66 49 Asset Impairment 73 18 • SG&A decreased primarily as a result of lower compensation-related expenses • Maintenance rights expense decreased as a result of
Slide 10: Strong Liquidity Position
Strong Liquidity Position Next 12 months’ sources-to-uses coverage of 2.2x, with ~$12 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of June 30, 2020) $6.4 billion of excess cash coverage ($ billion) 12.0 2.5x leverage ratio, lowest since 2014 10.5 $2.3 $0.1 23% secured deb
Slide 11: Strong Global Access to Funding
Strong Global Access to Funding ~$10B of ~$2.5B of Over $2B of ~$27B of Liquidity Initiatives Liquidity Funding Unencumbered (Funding and Management Currently in Assets Capex Reductions) Actions since Progress Executed to Date June 30th © AerCap | Confidential property of the company, not for disclo
Slide 12: Q&A
Q&A D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 13: Supplemental Information
Supplemental Information D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 14: Capital Structure
Capital Structure Adjusted Debt/Equity Calculation ($ million) Jun. 30, 2020 Dec. 31, 2019 Debt (including fair value adjustments) 30,684 29,486 Adjusted for: • Unrestricted cash & cash equivalents (2,383) (1,121) • 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 27,1
Slide 15: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise ~59% of our owned fleet Number of % Net Number of Number of Total Aircraft Type Owned Aircraft Book Value Managed Aircraft on Order Aircraft Aircraft Airbus A320 Family 278 13% 44 − 322 Airbus A320neo Family 145 20% 4 177 3
Slide 16: Attractive Aircraft Portfolio
Attractive Aircraft Portfolio ~59% of AerCap’s fleet consists of in-demand new technology aircraft AerCap’s Fleet Mix % of Fleet Current Technology 40% New Technology 35% 30% 787s 25% 20% 737NGs A320neo Family 15% A320 Family 10% A350s A330s 5% 777s E2s 737 MAXs 0% - 3 6 9 12 Average Age (Years) 2.7
Slide 17: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2020 2021 2022 2023 2024 Thereafter Total Airbus A320neo Family 20 32 30 37 29 29 177 Boeing 737 MAX - 7 3 17 18 35 80 Boeing 787 2 7 - 9 7 - 25 Embraer E190 / 195-E2 5 2 - - 11 22 40 Total Aircraft 27 48 33 63 65 86 322 • We expect this delivery s
Slide 18: Endnotes
Endnotes SLIDE 6 / SLIDE 10: Significant Reduction in Capital Expenditures / Strong Liquidity Position Capex includes cash payments for the next 12 months’ expected aircraft deliveries and pre-delivery payments. Sources of liquidity include $1.25 billion of 4.5% unsecured notes due 2023. SLIDE 15 /
Slide 19: AerCap House, 65 St. Stephen's Green, Dublin
AerCap House T: +353 1 819 2010 65 St. Stephen’s Green E: contact@aercap.com Dublin D02 YX20 W: aercap.com Ireland D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e