Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2022 Earnings Presentation
23 slides from Aercap's earnings presentation, February 2023
Slide 1: Fourth Quarter 2022 Financial Results
FOURTH QUARTER 2022 FINANCIAL RESULTS AERCAP HOLDINGS N.V.
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
Slide 3: Key Highlights
KEY HIGHLIGHTS Record level of 4Q 2022 results China reopening Supply chain transactions; 299 reflect strong is final leg in constraints transactions environment global air travel continue to cause executed in 4Q 2022 across all recovery delays on new and 895 business lines aircraft deliveries, tran
Slide 4: Significant Activity Across All Business Lines
SIGNIFICANT ACTIVITY ACROSS ALL BUSINESS LINES AerCap leased, purchased and sold 895 assets in 2022 ENGINES AIRCRAFT HELICOPTERS 173 TRANSACTIONS 570 TRANSACTIONS 152 TRANSACTIONS 98 351 121 LEASED LEASED LEASED 28 81 9 PURCHASED PURCHASED PURCHASED 47 138 22 SOLD SOLD SOLD © AerCap - Confidential p
Slide 5: Positive Impact of Global Traffic Recovery
POSITIVE IMPACT OF GLOBAL TRAFFIC RECOVERY Rebound in demand is driving lower storage rates and higher airline revenues, tracking return to 2019 levels in 2023 Total Daily Flights as a % of 2019 by Region Storage Rates for New Technology Aircraft Global Airline Revenues ($bn) 900 100% 30% 87% $838 $
Slide 6: Aircraft Supply Remains Constrained
AIRCRAFT SUPPLY REMAINS CONSTRAINED Production delays and regulatory issues have resulted in far fewer aircraft deliveries than the OEMs had originally planned Annual OEM Deliveries 1400 New aircraft supply 1200 Narrowbody Aircraft 270 ~1,800 fewer remains constrained, with 1000 409 431 800 698 narr
Slide 7: Leasing Not a Major Driver of Airline Operating Costs
LEASING NOT A MAJOR DRIVER OF AIRLINE OPERATING COSTS Aircraft lease payments represent only a small proportion of airlines’ operating costs Breakdown of Airlines’ Expenses by Type Aircraft Rents & Airlines’ major expenses are fuel and labour, Ownership, 5% which typically represent >50% of their Ot
Slide 8: 4Q 2022 Net Income Walk
4Q 2022 NET INCOME WALK 4Q 2022 Adjusted Net Income Increase Net income of $495 million, Decrease or $2.04 per share ($ million) 215 (47) 3 Adjusted net income of $645 (21) million, or $2.66 per share Purchase accounting 645 adjustments include: 495 $47 million related to lease premium amortization
Slide 9: 4Q 2022 Financial Drivers
4Q 2022 FINANCIAL DRIVERS Basic lease rents of $1,494 million reflected strong cash collections as well as $47 million of lease premium amortization Maintenance rents and other receipts were $140 million, and were negatively impacted by $111 million of maintenance rights assets amortized to revenue
Slide 10: Full Year 2022 Net Income Walk
FULL YEAR 2022 NET INCOME WALK FY 2022 Adjusted Net Income Increase Net loss of $726 million, Decrease or $3.02 per share ($ million) 33 (416) 629 Adjusted net income of $2.2 billion, or $9.01 per share 2,666 2,185 Purchase accounting adjustments include: $206 million related to lease premium amorti
Slide 11: Strong Liquidity Position
STRONG LIQUIDITY POSITION Next 12 months’ sources-to-uses coverage of 1.4x, with ~$18 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of December 31, 2022) Leverage ratio of 2.5x as 18.0 ($ billion) of December 31, 2022 16.5 Excess 15.0 ~$5 Coverage ~$5 4Q 2022 operating cash flow
Slide 12: AerCap 2023 Financial Outlook
AERCAP 2023 FINANCIAL OUTLOOK © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 13: Walk from 2022 EPS to 2023E EPS
WALK FROM 2022 EPS TO 2023E EPS Estimated 2023 adjusted EPS of $7.00-$7.50, excluding gains on sale Walk from 2022 EPS to Estimated 2023 EPS Increase Decrease ~(0.83) ~(0.41) ~(0.14) ~(0.39) ~(0.41) ~0.42 $9.01 ~$7.00 – $7.50 Excl. gains on sale 2022 EPS 2022 Gains MTM of Interest Lower Income as a
Slide 14: 2023 Projected Income Statement
2023 PROJECTED INCOME STATEMENT ($ billion, except EPS) FY 2023E Total Revenue $6.8 We expect to generate adjusted EPS of $7.00 - $7.50, not including any gains on Interest Expense (1.8) sale Depreciation (2.5) Assumes cash capex of ~$6.8 billion Leasing Expenses, SG&A & Other (1.2) Assumes sales of
Slide 15: Q&A
Q&A © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 16: Supplemental Information
SUPPLEMENTAL INFORMATION © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 17: 4Q & Full Year 2022 Adjusted Net Income and EPS
4Q & FULL YEAR 2022 ADJUSTED NET INCOME AND EPS 4Q 2022 FY 2022 Earnings Per Loss Per Share ($ million, except per share amounts) Net Income Net loss Share ($) ($) Net Income (Loss) / Earnings (Loss) Per Share 495 2.04 (726) (3.02) Amortization of Maintenance Rights and Lease Premium Assets 215 0.89
Slide 18: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $66.85 as of December 31, 2022 (millions, except per share data) Dec. 31, 2022 Total Shareholders’ Equity $16,118 Ordinary Shares Outstanding 245.9 Unvested Restricted Stock (4.8) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 241.1 Book Va
Slide 19: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation ($ million) Dec. 31, 2022 Dec. 31, 2021 Debt (including fair value adjustments) 46,533 50,205 Adjusted for: Unrestricted cash & cash equivalents (1,597) (1,729) 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 43,811 4
Slide 20: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~66% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED % NET BOOK VALUE NUMBER OF ASSETS MANAGED NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 5 - 3 17 25 Airbus A320 Family 457 11% 69 - 526 Airbus A320neo Fa
Slide 21: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2023 2024 2025 2026 2027 THEREAFTER TOTAL Airbus A220 Family 8 9 - - - - 17 Airbus A320neo Family 49 52 58 41 17 - 217 Airbus A330neo Family 4 7 - - - - 11 Boeing 737 MAX 12 19 34 65 - - 130 Boeing 787 4 6 10 5 - - 25 Embraer E190 / 195-E2 2 11 17
Slide 22: Endnotes
ENDNOTES SLIDE 5: Positive Impact of Global Traffic Recovery Total Daily Flights: Cirium as of February 26, 2023, Total includes domestic and international flights. Storage Rates: Cirium as of February 26, 2023. Global Airline Revenues: December 2022 IATA; actuals for 2017-2021, estimates for 2022.
Slide 23: Never Stand Still
NEVER STAND STILL PROPERTY OF AERCAP ©2023