Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2020 Earnings Presentation
24 slides from Aercap's earnings presentation, Nov 10, 2020
Slide 1: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results AerCap Holdings N.V. November 10 , 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 Incl. Forward Looking Statements & Safe Harbor
Disclaimer Incl. 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 actual r
Slide 3: Key Messages
Key Messages Significant increase in air travel and AerCap’s cash flows Strong balance sheet and record liquidity Accelerating trend towards new technology aircraft, of which AerCap is the largest owner in the world Expect to see significant opportunities to deploy capital © AerCap | Confidential pr
Slide 4: Air Travel Recovery Underway
Air Travel Recovery Underway OTHER EUROPE U.S. CHINA KEY DRIVERS European daily traffic U.S. daily passengers In October, Chinese Positive vaccine averaged ~14,000 surpassed 1 million in daily domestic flights developments flights in October, a October for the first were close to ~$200 bil
Slide 5: Recent AerCap Actions
Recent AerCap Actions Working Enhancing Working with the Our with Our OEMs Liquidity Customers 2020 and 2021 cash capex Operating cash flow New deferral requests reduced by ~$5.7 billion increased 76% from 2Q have decreased Ongoing discussions with to 3Q significantly OEMs and airlines Ove
Slide 6: AerCap Fleet Transformation
AerCap Fleet Transformation AerCap Fleet as of December 31, 2014 by NBV AerCap Fleet as of September 30, 2020 by NBV Current Current technology technology narrowbodies widebodies A320ceo, A330, B777 B737NG Current 33% New technology technology 29% aircraft narrowbodies A320neo, A350, A320ceo, B737 M
Slide 7: Lease Expiries Schedule
Lease Expiries Schedule AerCap has relatively few leases expiring through the end of 2022 % NBV for Expiring Leases Per Year as of September 30, 2020 Aircraft currently on 100% the ground and 90% expiring through the 80% end of 2022 represent only 9% of 70% our total fleet 60% 91% Average remain
Slide 8: Capital Deployment Alternatives
Capital Deployment Alternatives Dynamic capital allocation policy enables deployment of capital towards most productive uses Sale-and-Leaseback and OEM Order Opportunities Capital De-Levering Deployment M&A Alternatives Return of Capital © AerCap | Confidential property of the company, not for discl
Slide 9: 3Q 2020 Financial Results
3Q 2020 Financial Results 3Q 2020 Net Income Excluding Special Items Net loss of $850 million, or Increase Non-Cash $6.66 per share, including Decrease special items 400 ($ million) Special items in 3Q included a non-cash write-down of flight equipment and goodwill, non- 0 cash mark-to-market on
Slide 10: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2020 3Q 2019 Basic Lease Rents 897 1,067 Maintenance Rents and Other Receipts 91 73 Net Gain on Sale of Assets 7 41 Other Income 31 14 Total Revenues and Other Income 1,027 1,194 Basic lease rents decreased primarily due to lease restructurings, transitions
Slide 11: Cash Flow Recovery
Cash Flow Recovery Cash Flow from Operations Cash flow from operations increased 76% from 2Q to 3Q ($ million) 600 500 Vast majority of customers continue to pay every month 400 300 629 541 200 308 100 0 1Q 2020 2Q 2020 3Q 2020 Operating Cash Flow © AerCap | Confidential property of the company,
Slide 12: Asset Impairments
Asset Impairments AerCap Fleet as of September 30, 2020 by NBV Each quarter, we review our flight equipment for potential impairments This involves a forecast of expected cash flows over the remaining useful life of each aircraft and comparing those to our carrying value for that Current aircraf
Slide 13: Recent Funding Initiatives
Recent Funding Initiatives $4.0B ~$2.5B 3.9% $3.9B Unsecured debt Secured debt Average cost of Prepayment of raised since raised since debt raised in debt maturing April March 2020 through 2022 © AerCap | Confidential property of the company, not for disclosure or use without permission 13
Slide 14: Significant Reduction in Capital Expenditures
Significant Reduction in Capital Expenditures 2020 and 2021 aggregate cash capex reduced by ~$5.7 billion, or ~65% Cash Capital Expenditures 2020 capex reduced by ~70%, ~$0.4 billion 2020 2021 remaining 5.0 5.0 4.5 4.5 2021 capex reduced by >60% to ~$1.8 4.0 4.0 billion 3.5 3.5 >60% Cancelled
Slide 15: Record Liquidity Position
Record Liquidity Position Next 12 months’ sources-to-uses coverage of 2.9x, with $11.2 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of September 30, 2020) $7.4 billion of excess cash coverage ($ billion) 12.0 2.67x leverage ratio 10.5 $2.2 24% secured debt-to-total assets
Slide 16: Q&A
Q&A D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 17: Supplemental Information
Supplemental Information D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 18: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise ~62% of our owned fleet Number of % Net Number of Number of Total Aircraft Type Owned Aircraft Book Value Managed Aircraft on Order Aircraft Aircraft Airbus A320 Family 276 13% 44 − 320 Airbus A320neo Family 153 21% 5 169 3
Slide 19: Attractive Aircraft Portfolio
Attractive Aircraft Portfolio ~62% of AerCap’s fleet consists of in-demand new technology aircraft AerCap’s Fleet Mix % of Fleet Current Technology 40% New Technology 35% 30% 787s 25% 20% A320neo Family 737NGs 15% A320 Family 10% A350s 5% A330s 777s E-2s 737 MAXs 0% - 3 6 9 12 15 Average Age (Years)
Slide 20: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2020 2021 2022 2023 2024 Thereafter Total Airbus A320neo Family 12 25 31 37 29 35 169 Boeing 737 MAX - 5 5 17 18 26 71 Boeing 787 1 6 1 6 4 6 24 Embraer E190 / 195-E2 5 2 - - 11 22 40 Total Aircraft 18 38 37 60 62 89 304 As of September 30, 2020 ©
Slide 21: 3Q 2020 Net Income / EPS Excluding Special Items
3Q 2020 Net Income / EPS Excluding Special Items Net (Loss) Income (Loss) Earnings ($ million) Per Share ($) Net Loss / Loss Per Share (850) ($6.66) Special Items: 973 7.63 Asset Impairment 128 1.01 Mark-to-market Movement on Investment Loss on Debt Extinguishment 43 0.34 Income Tax Benefit
Slide 22: Capital Structure
Capital Structure Adjusted Debt/Equity Calculation ($ million) Sept. 30, 2020 Dec. 31, 2019 Debt (including fair value adjustments) 31,087 29,486 Adjusted for: Unrestricted cash & cash equivalents (3,244) (1,121) 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 26,
Slide 23: Endnotes
Endnotes SLIDE 6 / 7 / 12: Fleet Transformation / Lease Expiries Schedule / Asset Impairments NBV: net book value SLIDE 14: Significant Reduction in Capital Expenditures Capex includes cash payments for aircraft deliveries and pre-delivery payments during the next 12 months. SLIDE 15: Record Liquidi
Slide 24: AerCap House, Dublin
AerCap House T: +353 1 819 2010 65 St Stephens 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