Fly Leasing — Investor Presentation (September 2017)
17 slides from Fly Leasing's investor presentation, Sep 5, 2017
Slide 1: Fly Leasing
FLY LEASING September 2017 “FLY Leasing
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements:This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “s
Slide 3: FLY at a Glance
Conservative Financing6.2 years weighted average debt maturity, rates hedged 81 aircraft$3.0 billion net book value Lower Debt and SG&A CostsRecent financings at very competitive rates Managed by BBAMIndustry leader with nearly 30 year track record Significant Insider Ownership14% owned by BBAM shar
Slide 4: Favorable industry fundamentals
Favorable industry fundamentals Passenger traffic growth is robust • 7.4% forecast in 2017, 7.9% actual through 1H 2017 Strong Global Air Traffic Growth Airline industry results are positive • Forecast global net profit of $31 billion in 2017 Continued Airline Profitability Strong demand for aircraf
Slide 5: Significant accomplishments in last two years
Significant accomplishments in last two years Sold 71 older, less profitable aircraft since start of 2015 Selling Older and Under-Performing Aircraft Invested $1.5 billion in 25 younger aircraft since start of 2015 Reinvesting in Newer, Higher Yielding Aircraft Repurchased 30% of shares at a 31% dis
Slide 6: Meaningful two year fleet transformation
Meaningful TWO YEAR FLEET transformation Transformed fleet—Younger, more profitableSecond youngest fleet among public lessors Average Fleet Age (years) Average Lease Term (years) (24%) 31%
Slide 7: Significant improvement in asset mix
June 30, 2017 June 30, 2015 Aircraft Type # Average Age(years) % NBV # Average Age(years) % NBV A320 Family 25 8.6 20% 35 8.7 31% A330 / 340 5 6.4 8% 6 5.9 15% B737 Family 41 7.4 41% 41 7.4 45% B747 / 757 / 767 3(1) 20.9 1% 13 17.5 6% B777 2 1.8 11% - - - B787 5 2.2 19% 1 1.9 3% Total 81 6.1 100% 96
Slide 8: Acquisition strategy
Annual growth target of $750 millionPrincipally through sale and leasebacksBBAM’s area of expertise for nearly 30 yearsBBAM’s global reach provides advantageOpportunistic secondary market purchasesEach transaction can be evaluated prior to commitment Actual aircraft cost, lessee credit, lease termsA
Slide 9: Executing on fleet growth
Executing on Fleet Growth Attractive Acquisition Pipeline $750 million Annual Target $459 million acquired and identified in 2017 • Additional $40+ million identified for 2018 Young, Popular Aircraft11 aircraft including two B737-8 MAXs • 2 year average age • 9.7 year remaining lease term Positive F
Slide 10: Historic sales track record
Historic Sales track record Historical Aircraft Sales 2013 2014 2015 2016 Aircraft Sold 10 8 44 27 Average Age (years) 14 13 13 14 Total Gains (in millions) $5.4 $14.8 $29.0 $24.5 2016 Sales: 27 aircraft, average age of 14 years Average remaining lease term of three years Principally older, less pro
Slide 11: Share repurchase update
Share repurchase update Repurchased 3.3 million shares for $43.4 million in 2017 as of August 30, 201710% of FLY’s shares repurchased in 2017Average price per share of $13.25 in 201731% discount to Q2 NBV per share$23 million remaining in share repurchase program
Slide 12: Well positioned to add value
Conservative Fleet Growth and Financing • Potential for Increased EPS and NBV per Share Attractive Investment with Upside 6.1 Year Average Age • 6.8 Year Average Lease Term Young Fleet, Long Leases Ample Liquidity • Unencumbered Aircraft • Long Debt Maturities • Over $2 Billion Capacity Balance Shee
Slide 13: Appendices
appendices
Slide 14: Capital structure & liquidity summary
Capital structure & liquidity summary Weighted average debt maturity of 6.2 years Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs.Represents the ratio of total debt, less unrestricted cash and cash
Slide 15: Remarketing overview
remarketing overview Aircraft Remarketing Requirements Next remarketing requirement is in December 2017 (# of aircraft) % of NBV(1) 1.0% 4.1% 10.1% 7.4% Net book values as of June 30, 2017.
Slide 16: Diverse group of global lessees
Diverse group of global lessees Note: Sums may not foot due to rounding.Net book values as of June 30, 2017. Lessee Country % of NBV(1) India 12% Ethiopia 11% Philippines 9% Spain 4% India 4% France 4% India 3% USA 3% Chile 3% China 3% Top 10 Lessees 55% Region % of NBV(1) Asia & South Pacific 45% E
Slide 17: Historic acquisition track record
2013 2014 2015 2016 1H 2017 Aircraft Acquired 14 22 10 10 5 Average Age when Acquired (years) 2 3 2 3 <1 Total Acquisition Costs (in millions) $642 $952 $615 $559 $290 Historic ACQUISITION track Record Historical Aircraft Acquisitions Ample liquidity:$840 million in cash and unencumbered assets to i