Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2023 Earnings Presentation
21 slides from Aercap's earnings presentation, Oct 27, 2023
Slide 1: AerCap Third Quarter 2023 Financial Results
AERCAP | ~ THIRDQUARTER ~ 2023/FINANCIAL J ESULTS 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 performance and events. These statements, estimates and forecasts are “forward-looking statements’, In some cases, forward-looking statements ca
Slide 3: 3Q 2023 Highlights
3Q 2023 HIGHLIGHTS High Level of Activity Continues with 219 Transactions Executed in 3Q 2023 Long Term Supply Chain Challenges Drive Robust Demand for AerCap Assets AE RCAP | Received $646 Million in Insurance Settlement Proceeds Raising EPS Guidance to ~$9.50 for 2023, Excluding 4Q 2023 Gains on S
Slide 4: Significant Activity Across All Business Lines
SIGNIFICANT ACTIVITY ACROSS ALL BUSINESS LINES @ ahs E) ENGINES AIRCRAFT HELICOPTERS TOTAL TRANSACTIONS TRANSACTIONS TRANSACTIONS TRANSACTIONS 25 86 23 LEASED LEASED LEASED LEASED 9 19 5 PURCHASED PURCHASED PURCHASED PURCHASED 37 12 SOLD SOLD © AerCap -Confidential property of the company, not for d
Slide 5: Supply Chain Disruptions Lead to Higher Lease Rates
SUPPLY CHAIN DISRUPTIONS LEAD TO HIGHER LEASE RATES Commercial aircraft deliveries remain significantly behind OEM expectations, as airframers struggle to ramp up capacity and engine OEMs divert more engines to address reliability issues 1,800 average of 350 AOGs from 1,600 am 2024 through 2026, wit
Slide 6: Significant Capital Returned to Shareholders
SIGNIFICANT CAPITAL RETURNED TO SHAREHOLDERS Strong YTD performance across the business has enabled the return of significant capital to shareholders and the restoration of steady book value per share growth following the disruption of Covid-19 and the Ukraine Conflict are Repurchases as a % of Ordi
Slide 7: 3Q 2023 Net Income Walk
3Q 2023 NET INCOME WALK 3Q 2023 Adjusted Net Income Net income of $1.1 billion, or $4.86 per share Increase Decrease Adjusted net income of $639 million, or $2.81 per share Purchase accounting adjustments include: 67 646) arp C9 "13 $41 million related to lease premium amortization affecting basic l
Slide 8: 3Q 2023 Financial Drivers
3Q 2023 FINANCIAL DRIVERS Basic lease rents were $1,575 million, and were negatively impacted by $41 million of lease premium amortization Maintenance rents and other receipts were $126 million, and were negatively impacted by $23 million of maintenance rights assets amortized to revenue Net gain on
Slide 9: Strong Liquidity Position
STRONG LIQUIDITY POSITION Leverage ratio of 2.51x as of September 30, 2023 20 4 ponent neg . 18 ! ' 3Q 2023 operating cash flow Excess of $1.3 billion 16 4 ' Coverage ' 144 $3 ' “$8 | > Secured debt-to-total-assets ratio g 24 a of ~13% S 10 S| > Average cost of debt of 3.5% in 3Q ~$9 fa S 2023 44 >
Slide 10: Raising Full Year 2023 Guidance
RAISING FULL YEAR 2023 GUIDANCE > Key drivers of outperformance include: $10.00 ~$9.50 $9.00 $8.50 - $9.00 > Higher lease revenue primarily $8.00 er oomT eo due its pivonolcash collections eron LOGE and higher utilization of assets ena) IEDC excl. gains on power-by-the-hour rents ° excl. gains $5.00
Slide 11: GE Ownership Significantly Reduced
GE OWNERSHIP SIGNIFICANTLY REDUCED ange in GE Ownership of AerCa > Following the completion of two successful secondary offerings in 120 45.3% IMM GE Shareholding in AER 2023, GE's ownership of AerCap has decreased from 45.3% as of “ December 31, 2022 to 14.5% as of a 33.6% September 30, 2023 2 70 C
Slide 12: Q&A
Slide 13: Appendix
© AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 14: 3Q 2023 Adjusted Net Income and EPS
3Q 2023 ADJUSTED NET INCOME AND EPS ($ million, except per ‘e amounts) Net Income Earnings Per Net Income / Earnings Per Share $1,105 $4.86 Net Recoveries Related to Ukraine Conflict (646) (2.84) > Amortization of Maintenance Rights and Lease Premium Assets Recognized under ‘ 113 0.50 Purchase Accou
Slide 15: Full Year 2023 Adjusted EPS Guidance
FULL YEAR 2023 ADJUSTED EPS GUIDANCE Net Income / EPS ($ billion, except per share amounts) Net Income $2.3 > Net Recoveries Related to Ukraine Conflict (0.7) > Amortization of Maintenance Rights and Lease Premium Assets Recognized under Purchase 05 Accounting 0.0 > Income Tax Expense Adjusted Net I
Slide 16: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $78.28 as of September 30, 2023 (millions, except per share data) Sept. 30, 2023 Total Shareholders’ Equity $16,294 Ordinary Shares Outstanding 212.4 Unvested Restricted Stock (4.2) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 208.1 Book
Slide 17: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation (§ million) Sept. 30, 2023 Dec. 31, 2022 Debt (including fair value adjustments) 47,493 46,533 Adjusted for: > Unrestricted cash & cash equivalents (2,415) (1,597) > 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 43,
Slide 18: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~69% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED ET BOOK VALUE = NUMBEROF ASSETS MANAGED NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 8 1% 3 4 25 Airbus A320 Family 434 % 64 - 498 Airbus A320neo Family
Slide 19: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2023 2024 2025 2026 2027 THEREAFTER TOTAL Airbus A220 Family 4 10 - - - - 14 Airbus A320neo Family 12 42 45 53 22 5 179 Airbus A330neo Family - 8 - - - - 8 Boeing 737 MAX 5 20 34 65 - - 124 Boeing 787 3 4 10 5 - - 22 Embraer E190 / 195-E2 - 10 18
Slide 20: Endnotes
ENDNOTES SLIDE 5: Supply Chain Disruptions Lead to Higher Lease Rates OEM Deliveries: Airbus and Boeing Annual Commercial Aircraft Deliveries for 2015-2022 and 2023 year to date through September 30, 2023. Undelivered versus the total number of aircraft delivered by Airbus and Boeing in 2018. Aircra
Slide 21: AerCap
AERCAP | =R STAND STILL PROPERTY OF AERCAP ©2023