Aercap Holdings N.v. · NYSE:AER

Aercap — Baird Global Industrial Conference 2024

23 slides from Aercap's conference presentation, November 2024

  1. Slide 1: Baird Industrial Conference 2024

    BAIRD INDUSTRIAL CONFERENCE 2024 PETER JUHAS CHIEF FINANCIAL OFFICER

  2. Slide 2: Forward Looking Statements and Non-GAAP Financial Information

    FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATION This presentation contains certain statements, estimates and forecasts with respect to future As a result, we cannot assure you that the forward-looking statements included in this presentation performance and events. These statements, es

  3. Slide 3: Today's Key Messages

    TODAY’S KEY MESSAGES Supply and Demand Environment Expected to Remain Favorable for Years AerCap’s Industrial Platform Creates Significant Value Through the Asset’s Life Capital Allocation Strategy Maximizes Shareholder Value Through the Cycle These Factors Combine to Create Consistent Profitability

  4. Slide 4: Supply Chain Issues Compounding

    SUPPLY CHAIN ISSUES COMPOUNDING Several supply chain issues have resulted in significant delays to both turnaround times for used assets and new deliveries 1 2 MRO capacity was significantly OEMs remain >3,000 aircraft reduced during Covid-19, resulting in behind production schedules MRO substantial

  5. Slide 5: Aircraft Supply Issues Will Persist for Many Years

    AIRCRAFT SUPPLY ISSUES WILL PERSIST FOR MANY YEARS Manufacturing delays, coupled with engine maturation challenges, continue to delay the delivery of new technology aircraft 2024 Narrowbody Deliveries Likely to Remain Below 2017 2024 Widebody Deliveries Likely to Remain Below 2012 1,400 500 >2,100 N

  6. Slide 6: Aircraft Demand Remains Strong

    AIRCRAFT DEMAND REMAINS STRONG Widespread aircraft shortages are leading to higher extension rates and higher aircraft sale prices AerCap’s Aircraft Extension Rates AerCap’s Gain-on-Sale Margin 100% 30% 27% 25% 90% 25% 24% 21% 80% 20% 20% 18% 18% 70% 15% 14% 60% 10% 50% 5% 40% 30% - 1Q21 2Q21 3Q21 4

  7. Slide 7: Increasing Demand for Operating Leases

    INCREASING DEMAND FOR OPERATING LEASES Over the past 20 years the world fleet has DOUBLED while the operating lease fleet size has TRIPLED Proportion of Global Fleet on Operating Lease Proportion of Major Airlines’ Leased Fleets 23,973 OWNED FLEET 21,775 Virgin Atlantic 80% LEASED FLEET Iberia 79% 1

  8. Slide 8: Aircraft Leasing Competitive Landscape

    AIRCRAFT LEASING COMPETITIVE LANDSCAPE AerCap is the largest lessor with total lease assets of ~$61 billion 25% 16% 22% This is only a selected group of lessors LEASING MARKET SHARE OF GLOBAL LEASED FLEET 37% See Supplemental Information – Endnotes. © AerCap 8

  9. Slide 9: AerCap Combines the Industry's Pioneers

    AERCAP COMBINES THE INDUSTRY’S PIONEERS AerCap has grown through a combination of organic growth and large-scale M&A 1980s 1990s 2000s 2010s 2020s ESTABLISHED AERCAP IS THE LEADER IN AVIATION LEASING EMERGENCE OF OWNERSHIP CHANGES FORMATION OF TRANSFORMATION AERCAP COMPLETES INDUSTRY LEADERSHIP & IN

  10. Slide 10: The AerCap Advantage

    THE AERCAP ADVANTAGE AerCap’s platform is the competitive advantage for achieving superior returns throughout the lifecycle of assets 1st Financing Strong Balance Sheet 7th 2nd Trading & End-of-Life Purchasing Active Trader / Buy at the AerCap Materials Right Time 6th ADVANTAGE 3rd Transitions Speci

  11. Slide 11: 3Q YTD 2024 Highlights

    3Q YTD 2024 HIGHLIGHTS AerCap’s performance for the first 3 quarters of 2024 has been strong ~$ 1.7 ~$ 4.2 ~$ 2.2 2.4x $ 1.3 BILLION BILLION BILLION TIMES BILLION ADJUSTED NET OPERATING SALES ADJUSTED DEBT / CAPITAL INCOME CASH FLOW VOLUME EQUITY RATIO RETURNED TO SHAREHOLDERS See Supplemental Infor

  12. Slide 12: Raised Full Year 2024 Guidance

    RAISED FULL YEAR 2024 GUIDANCE Recently increased full-year 2024 adjusted EPS guidance to ~$10.70, not including any 4Q 2024 gains on sale 2024 Adjusted Earnings Per Share Guidance Key drivers of outperformance ~$10.70 include: $11.00 ~$10.25 $10.00 ~$1.70 9M’24 9M 2024 gains on sale of $391 ~$9.20

  13. Slide 13: Track Record of Strategic Capital Allocation

    TRACK RECORD OF STRATEGIC CAPITAL ALLOCATION Dynamic capital allocation policy enables deployment of capital towards its most productive uses DE-LEVERING ORGANIC GROWTH M&A RETURN OF CAPITAL • Strong Balance Sheet • Direct OEM Orders • Counter-cyclical M&A • Share Repurchases • Prudent Leverage & •

  14. Slide 14: Best-in-Class Operating Cash Flow

    BEST-IN-CLASS OPERATING CASH FLOW AerCap is outperforming other aircraft lessors by a wide margin Last 12 Months Operating Cash Flow / Average Total Assets 9% 8% AerCap 7.7% 7% 6% Other Aircraft 5% Lessors 4% 3% 2% 1% 0% 1Q 2020 3Q 2020 1Q 2021 3Q 2021 1Q 2022 3Q 2022 1Q 2023 3Q 2023 1Q 2024 3Q 2024

  15. Slide 15: Steady Growth in Book Value Per Share

    STEADY GROWTH IN BOOK VALUE PER SHARE AerCap’s book value per share has grown by a CAGR of ~18% over the last two years $100 $90.66 $90 $80 $64.59 $70 $60 $50 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 AerCap BVPS See Supplemental Information – Endnotes. © AerCap 15

  16. Slide 16: Sources of Additional Value

    SOURCES OF ADDITIONAL VALUE There are a number of strong tailwinds not included in AerCap’s book value today Book Value Per Share POTENTIAL INSURANCE RECOVERIES ASSET GECAS INFLATION DISCOUNT $90.66 BVPS TODAY © AerCap 16

  17. Slide 17: Supplemental Information

    SUPPLEMENTAL INFORMATION © AerCap

  18. Slide 18: 9M 2024 Adjusted Net Income Reconciliation

    9M 2024 ADJUSTED NET INCOME RECONCILIATION ($ billion) Net Income Net Income $1.4 Amortization of Maintenance Rights and Lease Premium Assets Recognized 0.4 under Purchase Accounting Net Recoveries Related to Ukraine Conflict (0.0) Income Tax Effect (0.1) Adjusted Net Income $1.7 See Supplemental In

  19. Slide 19: Full Year 2024 Adjusted EPS Guidance

    FULL YEAR 2024 ADJUSTED EPS GUIDANCE Projected FY 2024 ($ billion, except per share amounts) Net Income / EPS Net Income $1.7 Amortization of Maintenance Rights and Lease Premium Assets Recognized under Purchase 0.5 Accounting Net Recoveries Related to Ukraine Conflict 0.0 Income Tax Effect (0.1) Ad

  20. Slide 20: Book Value Per Share

    BOOK VALUE PER SHARE Book value per share of $90.66 as of September 30, 2024 (billions, except per share data) Sept. 30, 2024 Total Shareholders’ Equity $16.8 Ordinary Shares Outstanding 189.7 Unvested Restricted Stock (4.9) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 184.8 Book Va

  21. Slide 21: Capital Structure

    CAPITAL STRUCTURE Adjusted Debt/Equity Calculation ($ billion) Sept. 30, 2024 Debt $48.4 Adjusted for: Unrestricted cash & cash equivalents (3.8) 50% equity credit for long-term subordinated debt (1.1) Adjusted Debt 43.5 Equity 16.8 Adjusted for: 50% equity credit for long-term subordinated debt 1.1

  22. Slide 22: Endnotes

    ENDNOTES Unless otherwise stated, data as of September 30, 2024. SLIDE 5: Aircraft Supply Issues Will Persist for Many Years SLIDE 18: 9M 2024 Adjusted Net Income Reconciliation 1. OEM Deliveries: Airbus and Boeing Annual Commercial Aircraft Deliveries for 2014-2023 and Amortization of maintenance r

  23. Slide 23: Never Stand Still

    NEVER STAND STILL PROPERTY OF AERCAP © 2024

AerCap Holdings — Baird Global Industrial Conference 2024 on 6ix