Slide 1: AerCap Holdings N.V. First Quarter 2008 Earnings Call
AerCap Holdings N.V. First Quarter 2008 Earnings Call May 9, 2008
Slide 2: Forward Looking Statements & Safe Harbor
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 be identified by th
Slide 3: First Quarter 2008 Highlights
First Quarter 2008 Highlights Net income was $59.9 million for first quarter 2008, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for first quarter 2008 was $0.71 excluding the charges referenced above Basic rents
Slide 4: Aircraft and Engine Transactions
Aircraft and Engine Transactions 39 new aircraft lease agreements and letters-of-intent executed during first quarter 2008 7 aircraft and 10 engines delivered to lessees during first quarter 2008 19 aircraft purchased during first quarter 2008 8 aircraft sold during first quarter 2008 from o
Slide 5: Net Income
Net Income ($ Million) 1Q 2007 1Q 2008 Total Net Income 60.6* 50.9 Mark-to-market on interest rate caps 4.0 7.6 Share-based compensation 2.1 1.4 Net Income excluding above 66.7* 59.9 charges ~$2 million above consensus estimates** * First quarter 2007 net income includes $9.2 million (net of tax) co
Slide 6: Earnings Per Share
Earnings Per Share 1Q 2007 1Q 2008 Earnings Per Share $0.71* $0.60 Adjusted for: mark-to-market on interest rate caps and share 0.07 0.11 based compensation Earnings Per Share $0.78 $0.71 excluding above charges * First quarter 2007 earnings per share includes $0.11 contribution from “Other revenue”
Slide 7: Net Spread (Margin)
Net Spread (Margin) ($ Million) 1Q 2007 1Q 2008 % Change Basic Lease Rents 119 127 7% Less: Interest Expense* (46) (41) (11%) Net Spread (Margin) 73 86 18% Average Lease Assets 2,986 3,290 10% Annual Margin (% Lease Assets)** 9.7% 10.4% - Basic lease rents on floating rate leases are reduced as a re
Slide 8: Total Revenue
Total Revenue ($ Million) 1Q 2007 1Q 2008 Basic Lease Rents 119 127* Basic rents up 7% over Maintenance/End-of-Lease Revenue 21 17 first quarter Sales Revenue 149 143 2007 Servicing Fees and Interest Income 10 8 Other Revenue** 11 0 Total Revenue 310 295 * Amount is lower by ~$2 million from reduced
Slide 9: Sales Revenue
Sales Revenue Optimizing Our Portfolio with Sales ($ Million) 1Q 2007 1Q 2008 1Q 2008 (8 aircraft) 1 Fokker 100 Aircraft Sales 96 118 1 DC8 Engine Sales 33 - 1 MD82 1 B737-300 Part Sales 20 25 1 A330-200 3 A320-200 Total Sales Revenue 149 143 Gain from Aircraft Sales 27 26 9
Slide 10: Leasing Expenses and SG&A
Leasing Expenses and SG&A 1Q 2007 1Q 2008 % Change ($ Million) Operating lease in costs 6.2 3.6 (42%) Leasing expenses 4.0 6.4 60% SG&A 26.6 30.6* 15% Total Leasing expenses and SG&A 36.8 40.6 10% * $1.8 million of increase driven by higher Euro/U.S. dollar exchange rates 10
Slide 11: Tax Rate
Tax Rate FY 2007 1Q 2008 Tax Rate for Aircraft 9.8% 8.0% Tax Rate for Engine/Parts 35.4% 14.2% Blended Tax Rate 11.8% 8.3% 11
Slide 12: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines ($ Million) 1Q 2007 1Q 2008 5,000 4,595 14% increase over 1Q 2007 4,026 Total Assets 4,000 Owned and on Balance Sheet 3,000 2,000 Number of Aircraft Owned, On Order, Managed, Decrease in units largely driven by Contracted, on LOI (units) 341 320 sales of F
Slide 13: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1Q 2008 Committed 2008 Aircraft Related 266 1,209 Engines/Airframes 11 27 Total Purchases 277 1,236 Number of Aircraft 19 50 Purchases (Units) 13
Slide 14: Portfolio Management Metrics
Portfolio Management Metrics Lease Portfolio FY 2007 1Q 2008 Utilization Rate 98.9% 99.5% Portfolio Yield* 18% 18% Average Term (Months) – New Aircraft Leases 107 116** – Used Aircraft Leases 72 70*** 2008 Aircraft Lease Revenue Contracted as a % of 2007 Aircraft Lease Revenue: ~110% * Lease revenue
Slide 15: Debt and Equity
Debt and Equity ($ Million) 1Q 2007 1Q 2008 Total Debt at end of Quarter 2,666 3,044 Average Cost of Debt in Quarter* 6.9% 5.4% Shareholder Equity at end of Quarter 814 1,003 Debt / Equity Ratio at end of Quarter 3.3 to 1 3.0 to 1 * Interest expense divided by average debt balance, excluding mark-to
Slide 16: Funding/Access to Capital
Funding/Access to Capital Unrestricted Cash Balance at March 31, 2008* $197 Million Operating Cash Flow for 1Q 2008** $69 Million Financings Completed in April (Total of $338 Million) • A320 Pre-Delivery Payments Debt Facility $269 Million • A330 Pre-Delivery Payments Debt Facility $68 Million Avail
Slide 17: 2008 Financial Outlook
2008 Financial Outlook Purchases of aviation assets in all of 2008 expected to be ~$1.2 billion 2008 basic lease revenue expected to increase ~12% over 2007; -slightly lower than previous guidance due to floating rate leases; amounts offset by lower interest expense 2008 sales revenue expected
Slide 18: First Quarter 2008 Highlights
First Quarter 2008 Highlights Net income was $59.9 million for first quarter 2008, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for first quarter 2008 was $0.71 excluding the charges referenced above Basic rents