Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2017 Earnings Presentation
17 slides from Aercap's earnings presentation, Nov 2, 2017
Slide 1: Third Quarter 2017 Financial Results
Third Quarter 2017 Financial Results November 2, 2017 AerCap Holdings N.V.
Slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor
Disclaimer Incl. Forward Looking Statements & Safe Harbor This presentation contains certain statements, estimates and forecasts with not rely upon forward-looking statements as a prediction of actual results respect to future performance and events. These statements, estimates and we do not assume
Slide 3: AerCap Investment Case
AerCap Investment Case AerCap is the global leader in aircraft leasing Resilient industry fundamentals Global platform with unmatched breadth and reach Strong earnings and cash flow generation Disciplined portfolio management Strong liquidity and access to capital Prudent hedging strategies to mitig
Slide 4: 3Q 2017 Financial Results and Highlights
3Q 2017 Financial Results and Highlights Financial Results Highlights • 89 aircraft transactions, including 36 widebody Net Income transactions 3Q 3Q YTD • 99.3% fleet utilization ($ million) 2017 2017 • 7.1 years average age of owned fleet and Net Income 265.8 809.9 6.6 years average remaining leas
Slide 5: Net Income and Earnings Per Share
Net Income and Earnings Per Share 3Q 2017 3Q 2016 3Q YTD 2017 3Q YTD 2016 Net Income ($ million) 265.8 225.6 809.9 682.0 Diluted Earnings Per Share ($) 1.62 1.22 4.77 3.55 Key Highlights • For 3Q 2017, net income increased 18% year over year, primarily driven by: • Increase in net gain on sale of as
Slide 6: Book Value Per Share
Book Value Per Share (millions except per share data) Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2016 Total Shareholders’ Equity $8,546 $8,524 $8,370 Ordinary Shares Outstanding 158.0 176.2 181.7 Unvested Restricted Stock (2.8) (3.4) (3.3) Ordinary Shares Outstanding 155.2 172.8 178.4 (excl. Unvested Re
Slide 7: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2017 3Q 2016 Basic Lease Rents 1,038.4 1,088.0 Maintenance Rents and Other Receipts 163.0 91.9 Net Gain on Sale of Assets 63.7 22.4 Other Income 8.8 23.8 Total Revenues and Other Income 1,273.9 1,226.1 • Basic lease rents decreased primarily due to the sale o
Slide 8: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) Net Interest Margin ($ million) 3Q 2017 3Q 2016 3Q 2017 3Q 2016 Annualized Net Spread 8.9% 9.4% 760.2 815.7 Average Cost of Debt1 Net Interest Margin is calculated as basic lease Including all fees 4.0% 3.8% rents less interest expense, excluding the non-cash charges
Slide 9: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 3Q 2017 3Q 2016 Net Gain on Sale of Assets 63.7 22.4 3Q 2017 Aircraft Disposal Activity: • 27 aircraft, with an average age of 16 years, were sold from our owned portfolio: • 8 Airbus A320 Family aircraft, 6 Airbus A330s and 2 Airbus A340s • 1 Boeing 737
Slide 10: Other Expenses
Other Expenses ($ million) 3Q 2017 3Q 2016 Maintenance Rights Expense 109.1 71.7 Other Leasing Costs 28.7 57.0 Selling, General & Administrative Expenses 83.9 80.8 Asset Impairment 45.6 15.1 Restructuring Related Expenses − 29.0 • Maintenance rights expense increased in 3Q 2017 as a result of the am
Slide 11: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Since July 2014 ($ billion as of September 30, 2017) ($ billion) Sources (for 12 months to September 30, 2018) 10.5 10.0 3.0x Unsecured Revolver 3.9 9.5 9.5 9.2 9.1 2.8x 9.0 9.0 8.9 Other Facilities and Contracted Sales 3.5 9.0 2.
Slide 12: Q&A
GLOBAL LEADER IN AVIATIO Q&A DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 13: Supplemental Information
Supplemental Information DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 14: Capital Structure
Capital Structure Summary Sept. 30, 2017 Dec. 31, 2016 Adjusted Debt / Equity Ratio 2.7 to 1 2.7 to 1 Adjusted Debt/Equity Calculation ($ million) Sept. 30, 2017 Dec. 31, 2016 Debt (including fair value adjustments) 27,288 27,717 Adjusted for: • Unrestricted cash & cash equivalents (1,454) (2,035) •
Slide 15: High Quality and Well Diversified Portfolio as of September 30, 2017
High Quality and Well Diversified Portfolio as of September 30, 2017 Number of Number of % Net Number of Total Aircraft Type Managed & Owned Aircraft Book Value on Order Aircraft Aircraft AerDragon Aircraft Airbus A320 Family 382 23 50 − 432 Airbus A320neo Family 33 5 − 187 220 Airbus A330 84 11 10
Slide 16: Forward Order and Purchase/Leasebacks as of September 30, 2017
Forward Order and Purchase/Leasebacks as of September 30, 2017 Remaining Aircraft Type 2018 2019 2020 2021 Thereafter Total 2017 Airbus A320neo Family 11 57 46 43 30 − 187 Airbus A350 4 7 2 − − − 13 Boeing 737MAX − − 22 27 28 27 104 Boeing 787 6 13 6 2 2 − 29 Embraer E190 / 195-E2 − 1 14 14 14 7 50
Slide 17: AerCap Holdings N.V. contact details
AerCap Holdings N.V. AerCap House 65 St. Stephen’s Green Dublin 2, Ireland +353 1 819 2010 contact@aercap.com Follow us on