Slide 1: AerCap Holdings N.V. First Quarter 2010 Earnings Call
AerCap Holdings N.V. First Quarter 2010 Earnings Call May 7, 2010
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 respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements”. In some cases, forward-looking statements can be
Slide 3: First Quarter 2010 Highlights
First Quarter 2010 Highlights Net income was $46.7 million for first quarter 2010, exclusive of the impact relating to mark-to-market of interest rate caps and share- based compensation Earnings per share for first quarter 2010 was $0.55, exclusive of the impact relating to mark-to-market of int
Slide 4: Aircraft and Engine Transactions During First Quarter 2010
Aircraft and Engine Transactions During First Quarter 2010 6 aircraft lease agreements & letters-of-intent executed 12 aircraft and 12 engines delivered to lessees 20 aircraft and 5 engines purchased 5 aircraft (including 3 forward order positions) and 3 engines sold from our owned portfolio
Slide 5: 1Q 2010 Financial Impact from Genesis Transaction
1Q 2010 Financial Impact from Genesis Transaction The Genesis Transaction was completed on March 25, 2010 and is fully reflected in the AerCap Consolidated Balance Sheet as of March 31, 2010 ― Total Assets increased by $1.6 billion to $8.7 billion ― Flight Equipment increased by $1.3 billion to $7
Slide 6: Net Income
Net Income ($ Million) 1Q 2009 1Q 2010 Total Net Income 30.0 34.4 Adjusted for: Mark-to-market on interest rate caps 0.7 11.6 Adjusted for: Share-based compensation 0.8 0.7 Net Income excluding above charges 31.5 46.7 6
Slide 7: Earnings Per Share
Earnings Per Share 1Q 2009 1Q 2010 Earnings Per Share $0.35 $0.40 Adjusted for: mark-to-market on interest rate caps and 0.02 0.15 share based compensation Earnings Per Share $0.37 $0.55 excluding above charges Average Shares Outstanding 85.0 85.0 (Million) 7
Slide 8: Total Revenue
Total Revenue ($ Million) 1Q 2009 1Q 2010 Basic Lease Rents 141.4 165.8 Maintenance/End-of-Lease Revenue 19.8 9.5 Sales Revenue 41.7 182.4 Management Fees and Interest Income 5.4 3.9 Other Revenue 0.2 2.4 Total Revenue 208.5 364.0 8
Slide 9: Net Spread (Margin)
Net Spread (Margin) ($ Million) 1Q 2009 1Q 2010 % Change Basic Lease Rents 141.4 165.8 17% Less: Interest Expense* (28.9) (32.8) 13% Net Spread (Margin) 112.5 133.0 18% Average Lease Assets** 4,145 5,435 31% Annualized Margin (% Lease Assets) 10.9%*** 9.8% * Excludes non-cash charges relating to the
Slide 10: Sales
Sales ($ Million) 1Q 2009 1Q 2010 Aircraft Sales 0.0 140.8 Engine Sales 10.9 7.8 Part Sales 30.8 33.8 Total Sales Revenue 41.7 182.4 Total Gain from Sales 7.9 26.3 10
Slide 11: Leasing Expenses and SG&A
Leasing Expenses and SG&A ($ Million) 1Q 2009 1Q 2010 % Change Operating lease in costs 3.3 3.2 (3%) Leasing expenses * 19.2 10.5 (45%) SG&A 27.2 29.9 10% Total Leasing Expenses and 49.7 43.6 (12%) SG&A * Details on following page 11
Slide 12: Leasing Expenses
Leasing Expenses ($ Million) 1Q 2009 1Q 2010 % Change Default Related Leasing 6.1 0.0 (100%) Expenses * Normal Transition Costs 2.7 2.3 (15%) Lessor Maintenance 2.0 1.2 (40%) Contributions AeroTurbine & Other Leasing 8.4 7.0 (17%) Costs Total Leasing Expenses 19.2 10.5 (45%) *Costs in 2009 relate to
Slide 13: Tax Rate
Tax Rate FY 2009 1Q 2010 Tax Rate for Aircraft 0.0% 11.3% Charge Tax Rate for Engine/Parts 36.8% Charge (30.8%) Income Blended Tax Rate 1.9% Charge 10.0% Charge 13
Slide 14: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 1Q 2009 1Q 2010 ($ Million) 10,000 8,710 8,000 Total Assets 5,790 50% increase over Owned and on 6,000 1Q 2009 Balance Sheet 4,000 2,000 0 Number of Aircraft Owned, On Order, Managed, Contracted, on LOI (units) 295 338 Number of Engines Owned, Contracted,
Slide 15: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1Q 2010 Remaining 2010 Total 2010 Aircraft Related 882 1,314 2,196 Engines/Airframes 6 18 24 Total Purchases 888 1,332 2,220 Number of Aircraft 20 27 47 Purchases (Units) Note: Genesis Transaction added an additional 54 aircraft ($1.3 billion) to numbers abov
Slide 16: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio FY 2009 1Q 2010 Utilization Rate 98.1% 98.9% Portfolio Yield* 14.3% 12.9% Average Term (Months) – New Leases for New Aircraft 139 **144 – New Leases for Used Aircraft 50 *** 62 * Lease revenue divided by average book value of flight equipme
Slide 17: Cash
Cash ($ Million) 1Q 2010 Cash and Cash Equivalents at March 31, 2010 $225.9 Total Cash Balance at March 31, 2010 (Incl. Restricted $440.4 Cash) Operating Cash Flow for 1Q 2010 $137.6 17
Slide 18: Debt and Equity
Debt and Equity ($ Million) 1Q 2009 1Q 2010 Total Debt at Quarter-End 4,134 6,083 Average Cost of Debt* 2.8% 2.6% Equity 1,161 1,860 Debt / Equity Ratio** 3.6 to 1 3.3 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps ** If subordinated debt rece
Slide 19: 2010 Financial Outlook
2010 Financial Outlook AerCap expects to grow earnings based on the committed aircraft purchases despite the continued uncertainties of the financial markets. Set forth below are the anticipated drivers for AerCap’s 2010 financial performance, which are subject to change, in light of the highly flui
Slide 20: 2Q Outlook – EPS Impact of Aircraft Sales / One-Offs
2Q Outlook – EPS Impact of Aircraft Sales / One-Offs 1Q 2010 2Q 2010 Aircraft Sales $0.13 $0.06 Other One-Offs $0.02 $0.00 EPS Impact $0.15 $0.06 20
Slide 21: Appendix
Appendix * (AERCAP 21
Slide 22: Forward Order Aircraft
Forward Order Aircraft Options Options (1) 4 Additional 4 Additional 4 Additional 5 5 Purchases (2) Purchases (2) Purchases (2) Available LOI Sold Sold 20 3 12 12 Available Sold 57 12 Lease Lease Agreements Agreements Sold 33 21 9 Lease LOI Agreements 4 Lease 41 Agreements Delivered Sold 51 Delivere
Slide 23: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Aircraft Portfolio as of March 31, 2010 78% narrow body – “Work Aircraft under Horses” of industry Number of Number of Purchase Owned % Net Book Managed Aircraft Contract or Total High share of liquid / remarket- Aircraft Value Aircraft on Order LOI Ai