Slide 1: AerCap Holdings N.V. Second Quarter 2013 Earnings Call
AerCap Holdings N.V. Second Quarter 2013 Earnings Call August 6, 2013
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: Second Quarter 2013 Highlights
Second Quarter 2013 Highlights Adjusted net income for the second quarter 2013 was $67.1 million and adjusted earnings per share were $0.59. Adjusted earnings per share for the first half of 2013 were $1.19, a record high and an increase of 29% over the first half of 2012. During the second qu
Slide 4: Net Income
Net Income ($ Millions) 2Q 2013 2Q 2012 H1 2013 H1 2012 Reported Net Income 75.7 29.6 143.1 94.6 Adjusted for: mark-to-market on interest rate (10.7) 7.0 (12.0) 9.8 caps * Adjusted for: non-recurring charges for - 20.9 - 20.9 prepayment of secured loans* Adjusted for: cost of share-based 2.1 1.7 4.0
Slide 5: Basic Earnings Per Share
Basic Earnings Per Share 2Q 2013 2Q 2012 H1 2013 H1 2012 Earnings Per Share $0.67 $0.21 $1.26 $0.68 Adjusted for: mark-to-market on interest rate caps, non recurring charges for the prepayment of secured loans and share based compensation $(0.08) $0.22 $(0.07) $0.24 Adjusted Earnings Per Share* $0.5
Slide 6: Revenue
Revenue ($ Millions) 2Q 2013 2Q 2012 Basic Lease Rents 219.5 234.9 Maintenance Rents and Other Receipts 10.3 12.5 Net Gain on Sale of Assets 10.5 0.7 Management Fees and Interest Revenue 6.5 4.5 Other Revenue 0.2 0.3 Total Revenue* 247.0 252.9 * The decrease in total revenue was driven primarily by
Slide 7: Net Interest Margin (Net Spread) - Second Quarter 2013
Net Interest Margin (Net Spread) - Second Quarter 2013 ($ Millions) 2Q 2013 2Q 2012 Net Interest Margin (Net Spread)* 160.1 173.1 Average Lease Assets 7,570 7,988 Annualized Margin % 8.46% 8.67% * Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding non-cash charges
Slide 8: Sales of Aircraft
Sales of Aircraft AerCap continues to optimize its portfolio through the sale of aircraft: In the first half of 2013, we sold one A330, nine B737-800s and one MD-11 freighter aircraft. In the first half of 2012, we sold two A330s, one A320 and two B757 aircraft. Average age of our owned aircraft fle
Slide 9: Other Expenses/Taxes
Other Expenses/Taxes ($ Millions) 2Q 2013 2Q 2012 Leasing Expenses * 10.3 17.9 SG&A** 24.1 21.7 H1 2013 FY 2012 Blended Tax Rate *** 8.5% 5.2% * Decrease in leasing expenses was due primarily from lower expenses relating to lessee defaults. ** Increase in SG&A was due primarily from higher project r
Slide 10: Cash
Cash ($ Millions) 2013 2012 Cash and Cash Equivalents at June 30 156.9* 474.3 (Excl. Restricted Cash) Total Cash Balance at June 30 404.3* 765.1 (Incl. Restricted Cash) Operating Cash Flow for the Second Quarter 147.4 158.2 * The decrease in the cash balance was driven primarily by: - the use of $25
Slide 11: Debt and Equity
Debt and Equity ($ Millions) 2Q 2013 2Q 2012 Total Debt at Quarter-End 6,024 6,225 Average Cost of Debt (including ~0.4% 3.9% 4.0% relating to amortization of debt issuance costs)* Equity** 2,274 2,315 Debt / Equity Ratio 2.6 to 1 2.7 to 1 * Interest expense divided by average debt balance, excludin
Slide 12: 2013 Financial Outlook
2013 Financial Outlook Set forth below are the expected drivers for AerCap’s 2013 financial performance, which are subject to change. 2013 committed aircraft purchases are ~$1.7 billion. As a result of the ALS sale, 2013 basic lease rents are expected to decrease ~3% over 2012. 2013 maintenanc
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Portfolio Development
Portfolio Development 2011 2012 H1 2013 Total Assets ($ billion) 9.1 8.6 9.0 Average Age of Owned Aircraft (Years) 5.5 5.1 5.3 No. Aircraft Sold 21 59 11 Book Value of Aircraft Sold ($ billion) 0.3 1.4 0.4 Completed Purchases ($ billion) 0.9 1.1 1.3 Committed Purchases Outstanding ($ billion) 2.5 1.
Slide 15: Flight Equipment and Cash (Over Past 12 Months)
Flight Equipment and Cash (Over Past 12 Months) Key actions taken over past 12 months include: sales of older aircraft, purchases of new aircraft, and share repurchases. The average age of our portfolio was reduced to 5.3 years. Flight Total Equipment Cash June 30, 2012 8,051 765 Aircraft Sales (inc
Slide 16: Aircraft Transactions Year to Date June 2013
Aircraft Transactions Year to Date June 2013 37 lease agreements & letters-of-intent executed 34 aircraft delivered to lessees 26 aircraft purchased 11 aircraft sold from our owned and seven from managed portfolios 16
Slide 17: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q2 2013 Q2 2012 ($ Millions) 8,973 9,289 10,000 8,000 3% decrease 6,000 over Q2 2012 Total Assets (Primarily attributable Owned and on to the sale of the ALS portfolio, now a Balance Sheet 4,000 managed asset and partially offset by new aircraft deliveries.) 2,000
Slide 18: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of June 30, 2013 Aircraft Number of under Sale / Number of Managed & Purchase Owned % Net Book AerDragon Aircraft on Contract or Total Aircraft Value Aircraft Order LOI Aircraft Airbus A300 Freighter 0 0.0% 1 0 0 1 67% narrow body –
Slide 19: Committed Aircraft Purchases
Committed Aircraft Purchases H1 2013 Remaining Committed Committed 2013 2013 2014 & Beyond Aircraft Purchases 1,278 417 1,695 2,919* ($ Millions) Number of Aircraft 26 9 35 33 Purchases (Units) * Comprises of $0.4 billion in 2014, $0.5 billion in 2015 and $2.0 billion between 2016 and 2018. 19
Slide 20: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio H1 2013 FY 2012 Utilization Rate* 99.7% 98.5% Portfolio Yield** 12.2% 12.7% Average Term (Previous 12 Months) – New Leases for New Aircraft (Months) 166*** 149 – New Leases for Used Aircraft (Months) 58**** 66 * Days utilized weighted by bo
Slide 21: Leasing Expenses
Leasing Expenses ($ Millions) 2Q 2013 2Q 2012 Default Related 0.8 8.7 Normal Transition Costs 3.3 3.5 Lessor Maintenance Contributions 4.4 1.9 Other Leasing Costs 1.8 3.8 Total Leasing Expenses 10.3 17.9 21
Slide 22: Impact from Defaults and Restructuring
Impact from Defaults and Restructuring 2Q 2013 2Q 2012 H1 2013 H1 2012 ($ Millions) Default and Restructuring Related Lost Basic Lease Rents (Net of - (4.2) (0.8) (7.5) Security Deposits) Maintenance Rents Held - 0.3 0.2 8.9 Default Related Leasing Expenses* (0.8) (8.7) (2.6) (21.7) Total Impact (Pr
Slide 23: SG&A
SG&A ($ Millions) 2Q 2013 2Q 2012 Mark-to-market of: foreign currency hedges, foreign currency cash (0.1) 1.8 balances and other derivatives Share-based compensation expenses 2.4 1.9 Other Selling, General and 21.8 18.0 Administrative Expenses* Total Selling, General and 24.1 21.7 Administrative Exp