Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2015 Earnings Presentation
26 slides from Aercap's earnings presentation, May 11, 2015
Slide 1: First Quarter 2015 Financial Results
May 11, 2015 First Quarter 2015 Financial Results AerCap Holdings N.V.
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 b
Slide 3: AerCap Investment Case
AerCap Investment Case Combination with ILFC created global leader in aviation • Strong and resilient industry fundamentals • Efficient and scalable platform with over 99% portfolio utilization • Industry’s most attractive order book • Attractive diverse global portfolio producing stable and predict
Slide 4: Operational Update
Operational Update • Adjusted net income of $304.6 million for 1Q 2015 (reported net income of $311.5 million) • Adjusted basic earnings per share of $1.44 for 1Q 2015 (reported basic earnings per share of $1.47) • 104 aircraft transactions executed including the purchase of 17 aircraft with a value
Slide 5: Net Income
Net Income ($ millions) 1Q 2015 1Q 2014 Reported Net Income 311.5 54.7 Adjusted for: • Mark-to-market on interest rate caps and swaps, net of tax 6.6 4.3 • Transaction and integration related expenses, net of tax1 3.8 18.8 • Maintenance rights related expenses, net of tax (17.3) - Adjusted Net Incom
Slide 6: Basic Earnings Per Share
Basic Earnings Per Share 1Q 2015 1Q 2014 Earnings Per Share $1.47 $0.48 Adjusted for: Mark-to-market on interest rate caps and swaps, transaction and $(0.03) $0.20 integration related expenses1 and maintenance rights related expenses, all net of tax Adjusted Earnings Per Share $1.44 $0.68 Average Sh
Slide 7: Revenues and Other Income
Revenues and Other Income ($ millions) 1Q 2015 1Q 2014 Basic Lease Rents1 1,157.9 234.9 Maintenance Rents and Other Receipts1 71.2 14.2 Net Gain on Sale of Assets 33.7 9.8 Other Income2 29.4 5.9 Total Revenues and Other Income 1,292.2 264.8 (1) First quarter 2015 basic lease rents and maintenance re
Slide 8: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ millions) 1Q 2015 1Q 2014 Net Interest Margin (Net Spread)1 877.9 176.8 Average Lease Assets2 36,378 8,129 Annualized Net Spread % 9.7% 8.7% (1) Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding the non-cash charges relating to
Slide 9: Sales of Aircraft
Sales of Aircraft ($ millions) 1Q 2015 1Q 2014 Pre-tax Gain from Aircraft Sales 33.7 9.8 1Q 2015 Activity: • The gain from aircraft sales related to the sale of 12 aircraft from our owned portfolio and 5 aircraft that were reclassified to finance leases: • 3 Airbus A340-600s, 2 Airbus A340-300s, 2 A
Slide 10: Other Expenses and Taxes
Other Expenses and Taxes ($ millions) 1Q 2015 1Q 2014 Leasing1 92.7 12.8 SG&A 95.1 23.1 Impairment2 4.7 - Transaction and Integration Related3 4.4 21.5 1Q 2015 FY 2014 Blended Tax Rate4 13.5% 15.0% (1) Leasing includes $46.6 million relating to expensing of the maintenance rights asset (2) The 1Q 20
Slide 11: Cash
Cash ($ millions) 1Q 2015 1Q 2014 Cash and Cash Equivalents at March 31, 2015 1,594.0 320.1 (Excl. Restricted Cash) Total Cash Balance at March 31, 2015 1,928.0 587.1 (Incl. Restricted Cash) Operating Cash Flow for 1Q 750.3 155.0 Annual run-rate for operating cash flow is over $3.0 billion 11
Slide 12: Liquidity Position as of March 31, 2015
Liquidity Position as of March 31, 2015 Sources (for 12 Months to March 31, 2016) ($ billions) Unsecured Revolver 3.0 Other Undrawn Commitments 1.6 Sources do not include or assume additional AIG Revolver 1.0 financing for deliveries Unrestricted Cash 1.6 of new aircraft Total Available Liquidity 7.
Slide 13: Capital Structure
Capital Structure 1Q 2015 1Q 2014 Total Debt at Quarter-End ($ millions) 30,256.6 6,204.4 Average Cost of Debt (including all fees)1 3.7% 3.9% Equity ($ millions) 8,268.6 2,486.0 Debt / Equity Ratio 3.2 to 1 2.5 to 1 Debt / equity ratio calculation: • The debt/equity ratio for 1Q 2015 is calculated
Slide 14: Financial Outlook
6 AERCAP y Aviation Solutions Financial Outlook AERCAP.COM
Slide 15: Financial Outlook for 2015: Adjusted Income
Financial Outlook for 2015 : Adjusted Income Anticipated drivers for AerCap’s 2015 financial performance, subject to change, in light of highly fluid market conditions and other factors1 Previous2 Revised ($ billions) Update Adjusted Income Adjusted Income Total Revenue ~5.0-5.10 - ~5.0-5.10 Gain on
Slide 16: Financial Outlook for 2015: Reported Income
Financial Outlook for 2015 : Reported Income Anticipated drivers for AerCap’s 2015 financial performance, subject to change, in light of highly fluid market conditions and other factors1 Revised Adjusted ($ billions) Adjustment2 Reported Income Income Total Revenue ~5.0-5.10 - ~5.0-5.10 Gain on Sale
Slide 17: Q&A
6 AERCAP y Aviation Solutions Q&A AERCAP.COM
Slide 18: Supplemental Information
Supplemental Information 18
Slide 19: Aircraft Transactions: 1Q 2015
Aircraft Transactions: 1Q 2015 67 17 20 LEASE AIRCRAFT AIRCRAFT AGREEMENTS PURCHASED DISPOSED EXECUTED (sale or part-out) 16 from our owned portfolio and 4 from our managed portfolio In addition to the aircraft transactions above, 32 aircraft were delivered to lessees during first quarter 2015 19
Slide 20: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio 1Q 2015 1Q 2014 Utilization Rate1 99.4% 98.9% Portfolio Yield2 13.5% 12.3% Average Lease Term (Previous 12 months) • Leases for New Aircraft (Years) 11.83 13.6 • Leases for Used Aircraft (Years) 4.44 5.2 (1) Utilization rate weighted by
Slide 21: AerCap's Platform Capabilities
AerCap’s Platform Capabilities Significant number of aircraft placements have been executed over the past 18 months Type Placements Airbus A320 family 144 Airbus A320neo family 72 Boeing 737 (NG) 108 34 ~ 27 aircraft Other Narrow-body placements 358 ~47% extensions have been placed per Airbus A330 5
Slide 22: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order2 Total Aircraft Owned Aircraft1 AerDragon Aircraft Airbus A319 142 8% 11 - 153 Airbus A320 237 16% 31 - 268 Airbus A320neo - - - 155 155 Airbus A321 101 7% 15 - 116 Airbus A321n
Slide 23: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Remaining (Units1) 2016 2017 2018 2019 Thereafter Total 2015 Airbus A320 / A321neo 1 21 41 42 40 60 205 Airbus A350 2 10 11 6 - - 29 Boeing 737NG 18 1 - - - - 19 Boeing 737MAX - - - 3 2 - 5 Boeing 787-8/-9 9 14 14 18 5 - 60 Embraer E190 / 195-E2 - - - 5 14 31 50
Slide 24: Leasing Expenses
Leasing Expenses ($ millions) 1Q 2015 1Q 2014 Default and Restructuring Related1 11.3 2.2 Normal Transition Costs 19.8 3.4 Maintenance Rights Expense 46.6 - Lessor Maintenance Contributions 10.3 6.1 Other Leasing Costs 4.6 1.0 Leasing Expenses 92.7 12.8 (1) Default and restructuring related costs in
Slide 25: Maintenance Rights Adjustment for 1Q 2015
Maintenance Rights Adjustment for 1Q 2015 ($ millions) Reported Basis Adjustment Adjusted Basis Depreciation (452) (67) (519) Lease expenses (93) 47 (46) Pre-tax Earnings Impact (20) Net Income Impact (17) 25
Slide 26: Head Office, Schiphol, The Netherlands
Head Office, AerCap House Stationsplein 965 1117 CE Schiphol, The Netherlands +31 20 655 9655 contact@aercap.com 26