Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2019 Earnings Presentation
18 slides from Aercap's earnings presentation, Nov 8, 2019
Slide 1: Third Quarter 2019 Financial Results
Third Quarter 2019 Financial Results AerCap Holdings N.V. November 8, 2019 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 Including Forward Looking Statements & Safe Harbor
Disclaimer Including Forward Looking Statements & Safe Harbor This presentation contains certain statements, estimates and forecasts with as required by applicable law, we do not undertake any obligation to, and will respect to future performance and events. These statements, estimates and not, upda
Slide 3: Well-Positioned for the Future
Well-Positioned for the Future 55% >$40 ~97% 2027 BILLION CONTRACTED NEW TECHNOLOGY CONTRACTED FUTURE LEASE RENTS AVERAGE AIRCRAFT AS % OF LEASE REVENUES THROUGH 2022 LEASE END DATE CURRENT FLEET NBV © 2019 AerCap | Confidential property of the company, not for disclosure or use without permission 3
Slide 4: 3Q 2019 Financial Results and Highlights
3Q 2019 Financial Results and Highlights Financial Results Highlights • 12% increase in EPS year over year NET INCOME • Upgraded to BBB rating by S&P Global Ratings and placed on Positive Outlook by Moody’s ($ million) 3Q 2019 3Q 2018 • 99.8% fleet utilization and 108 aircraft transactions completed
Slide 5: Net Income and Earnings Per Share
Net Income and Earnings Per Share 3Q 2019 3Q 2018 3Q YTD 2019 3Q YTD 2018 Net Income ($ million) 270.3 263.4 835.9 783.0 Diluted Earnings Per Share ($) 2.01 1.79 6.10 5.21 Key Highlights • The increase in net income was primarily driven by higher lease rents resulting from an increase in average lea
Slide 6: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2019 3Q 2018 Basic Lease Rents 1,066.6 1,038.5 Maintenance Rents and Other Receipts 72.6 93.9 Net Gain on Sale of Assets 40.5 20.0 Other Income 14.4 14.1 Total Revenues and Other Income 1,194.1 1,166.5 • Basic lease rents increased in 3Q 2019 due to a $2.4 bi
Slide 7: Net Interest Margin and Net Spread
Net Interest Margin and Net Spread 3Q 2019 3Q 2018 Net Interest Margin ($ million) 757.7 741.5 Average Lease Assets ($ million) 37,663 35,280 Average Cost of Debt 4.2% 4.1% Including debt issuance costs, upfront fees, undrawn fees, commitment fees and original issuance discount fees of ~0.3% Annuali
Slide 8: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 3Q 2019 3Q 2018 Net Gain on Sale of Assets 40.5 20.0 3Q 2019 Aircraft Disposal Activity for $561 million • 19 aircraft, with an average age of 14 years, were sold from our owned portfolio: - 8 Airbus A320 Family aircraft and 3 Airbus A330s - 6 Boeing 737N
Slide 9: Other Expenses
Other Expenses ($ million) 3Q 2019 3Q 2018 Selling, General & Administrative Expenses 64.7 63.4 Maintenance Rights Expense 13.9 33.5 Other Leasing Costs 30.2 51.3 Asset Impairment 31.2 12.8 • Maintenance rights expense decreased as a result of lower maintenance activity during the period and the low
Slide 10: Liquidity Position
Liquidity Position We continue to maintain strong liquidity, with $9.1 billion available as of September 30, 2019 Sources vs. Uses (Next 12 Months) ($ billion as of Sept 30, 2019) Liquidity Levels Over the Last 8 Quarters Sources (for 12 months to September 30, 2020) ($ billion) 12.0 11.7 3.5x 11.0
Slide 11: Book Value Per Share
Book Value Per Share AerCap has grown book value per share by 13% year over year and by ~15% per year over the last 5 years Book Value Per Share Book Value Per Share Growth (millions, except per share Sept. 30, Sept. 30, $75 data) 2019 2018 $69 $70 Total Shareholders’ Equity $9,175 $8,870 $65 $63 $6
Slide 12: Q&A
Q&A D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 13: Supplemental Information
Supplemental Information D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 14: Capital Structure
Capital Structure Summary Sept. 30, 2019 Adjusted Debt / Equity Ratio 2.75 to 1 Adjusted Debt/Equity Calculation ($ million) Sept. 30, 2019 Debt (including fair value adjustments) 29,284 Adjusted for: • Unrestricted cash & cash equivalents (1,037) • 50% equity credit for long-term subordinated debt
Slide 15: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise 55% 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 294 15 39 − 333 Airbus A320neo Family 124 17 − 151 275
Slide 16: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2019 2020 2021 2022 Thereafter Total Airbus A320neo Family 13 38 43 32 25 151 Airbus A350 1 − 2 − − 3 Boeing 737 MAX − 25 37 30 3 95 Boeing 787 2 3 3 6 12 26 Embraer E190 / 195-E2 6 13 14 12 − 45 Total Aircraft 22 79 99 80 40 320 As of September 30
Slide 17: Endnotes
Endnotes SLIDE 7: Net Interest Margin and Net Spread Net interest margin is calculated as basic lease rents less interest expense, excluding the non-cash charges related to the mark-to-market of interest rate caps. Average lease assets includes flight equipment held for operating leases, flight equi
Slide 18: AerCap House, 65 St. Stephen's Green, Dublin
AerCap House T: +353 1 819 2010 65 St. Stephen’s 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