Aercap Holdings N.v. · NYSE:AER
Aercap — Q2 2023 Earnings Presentation
19 slides from Aercap's earnings presentation, Jul 31, 2023
Slide 1: 2nd Quarter 2023 Financial Results
AERCAP | ND QUARTER 3FINANCIAL RESULTS AERCAP HOLDINGS N.V.
Slide 2: Forward Looking Statements and Non-GAAP Financial Information
FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATION This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements’, In some cases, forward-looking statements ca
Slide 3: 2Q 2023 Highlights
2Q 2023 HIGHLIGHTS High Level of Activity with 215 Transactions Executed in 2Q 2023 Robust Sales Market Continues; $1.5 Billion of Sales in 1H 2023 AERCAP | Raising FY 2023 Earnings Guidance Based on Strong Operating Performance $857 Million of Shares Repurchased YTD, New $500 Million Program Author
Slide 4: Significant Activity Across All Business Lines
SIGNIFICANT ACTIVITY ACROSS ALL BUSINESS LINES @ ahs E) ENGINES AIRCRAFT HELICOPTERS TOTAL TRANSACTIONS TRANSACTIONS TRANSACTIONS TRANSACTIONS 11 95 18 LEASED LEASED LEASED LEASED 6 22 4 PURCHASED PURCHASED PURCHASED PURCHASED 29 17 13 SOLD SOLD SOLD © AerCap -Confidential property of the company, n
Slide 5: Supply/Demand Dynamic a Longer-Term Phenomenon
SUPPLY/DEMAND DYNAMIC A LONGER-TERM PHENOMENON Since the MAX issues in 2018, OEM new aircraft deliveries have significantly trailed demand for aircraft, driving storage rates lower and lease rates higher, a phenomenon we expect to continue for several years hts (Indexed to 2018) Storage Rates for Ne
Slide 6: Broad-Based Demand for Aviation Assets
BROAD-BASED DEMAND FOR AVIATION ASSETS Tight supply market drives continued demand for aviation assets, allowing AerCap to sell assets above book value and buy shares below book value Quarterly Sales Volumes ($ million) 2Q 2023 Asset Sales and Share Repurchases $1,000 2.5x $900 $800 ADs ~1.9hx $700
Slide 7: 2Q 2023 Net Income Walk
2Q 2023 NET INCOME WALK 2Q 2023 Adjusted Net Income Increase Decrease 132 (14) (15) 493 GAAP Net Purchase Net Recoveries Income Tax Adjusted Net Income Accounting Related to Impact Income Adjustments* Ukraine Conflict* EPS $2.12 $0.57 $(0.06) $(0.06) $2.56 *These items are presented pre-tax. See Sup
Slide 8: 2Q 2023 Financial Drivers
2Q 2023 FINANCIAL DRIVERS Basic lease rents were $1,561 million, and were negatively impacted by $41 million of lease premium amortization Maintenance rents and other receipts were $156 million, and were negatively impacted by $29 million of maintenance rights assets amortized to revenue Net gain on
Slide 9: Strong Liquidity Position
STRONG LIQUIDITY POSITION Sources es (Next 12 Months) (as of June 30, 2023) Leverage ratio of 2.51x as of June 30, 2023 ze 18.0 4 nn . 5 i Excess ' 2Q 2023 operating cash flow g 165 4 : Coverage H one = 1504 ' ~$5 of $1.2 billion 1235 4 en 120 4 $3 > Secured debt-to-total-assets ratio 10.5 4 of ~14%
Slide 10: Raising Full Year 2023 Guidance
RAISING FULL YEAR 2023 GUIDANCE > Key drivers of outperformance include: $9.00 $8.50 - $9.00 $8.00 > Higher lease revenue primarily $7.00 - $7.50 l $7.00 due to strong cash collections and higher utilization of assets $6.00 $7.50 - $8.00 on power-by-the-hour rents $5.00 excl. gains Strong performanc
Slide 11: Q&A
Slide 12: © or use without permission
© AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 13: 2Q 2023 Adjusted Net Income and EPS
2Q 2023 ADJUSTED NET INCOME AND EPS ($ million, except per share amounts) Net Income Earnings Per Share ($) Net Income / Earnings Per Share $493 $2.12 Amortization of Maintenance Rights and Lease Premium Assets Recognized under 132 0.57 Purchase Accounting > Net Recoveries Related to Ukraine Conflic
Slide 14: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $71.46 as of June 30, 2023 Jun. 30, 2023 (millions, except per share data) Total Shareholders’ Equity $16,312 Ordinary Shares Outstanding 232.5 Unvested Restricted Stock (4.2) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 228.3 Book Value
Slide 15: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation (§ million) Jun. 30, 2023 Dec. 31, 2022 Debt (including fair value adjustments) 46,256 46,533 Adjusted for: > Unrestricted cash & cash equivalents (1,154) (1,597) > 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 43,9
Slide 16: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~69% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED ET BOOK VALUE NUMBER OF ASSETS MANAGED —_ NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 8 1% 3 4 25 Airbus A320 Family 443 9% 65 - 508 Airbus A320neo Fam
Slide 17: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2023 2024 2025 2026 2027 THEREAFTER TOTAL Airbus A220 Family 5 9 - - - - 14 Airbus A320neo Family 26 46 44 51 24 2 193 Airbus A330neo Family 2 8 - - - - 10 Boeing 737 MAX 9 19 34 65 - - 127 Boeing 787 1 6 10 5 - - 22 Embraer E190 / 195-E2 - 11 17
Slide 18: Endnotes
ENDNOTES SLIDE 5: Supply/Demand Dynamic a Longer-Term Phenomenon Storage Rates: Cirium, average monthly storage rates for 2018, 2019, 2020, 2021 and 2022, monthly storage rate as of June 30, 2023: aircraft in storage as a % of aircraft in service and aircraft in storage. OEM Deliveries: Airbus and B
Slide 19: AerCap
AERCAP | =R STAND STILL PROPERTY OF AERCAP ©2023