Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2018 Earnings Presentation
19 slides from Aercap's earnings presentation, Feb 14, 2019
Slide 1: Fourth Quarter 2018 Financial Results
Fourth Quarter 2018 Financial Results February 14, 2019 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 not rely upon forward-looking statements as a prediction of actual results respect to future performance and events. These statements, estimates and we do not assume
Slide 3: AerCap's Business Model
AerCap’s Business Model Buy the right aircraft, place them on long-term contracts and generate consistent returns WORLD’S LARGEST LEASED ON FIXED ACTIVE RISK CONSISTENT AND OWNER OF LONG-TERM MANAGEMENT AND STABLE COMMERCIAL CONTRACTS CAPITAL ALLOCATION PROFITABILITY AIRCRAFT1 AVERAGE REMAINING 1,42
Slide 4: AerCap Over the Past 5 Years
AerCap Over the Past 5 Years ~$29 >$15 billion AGGREGATE OPERATING EARNINGS CASH FLOW PER SHARE >2,000 Aircraft PURCHASED, LEASED OR SOLD ~200% >$5 billion GROWTH IN NET INCOME BOOK VALUE PER SHARE For the five years ended December 31, 2018 4
Slide 5: 4Q 2018 Financial Results and Highlights
4Q 2018 Financial Results and Highlights Financial Results Highlights Net Income • Record 145 aircraft transactions executed in 4Q 2018 • ~95% of lease rents through 2021 already contracted 4Q FY ($ million) 2018 2018 • 99.0% fleet utilization in 4Q 2018 Net Income 232.6 1,015.6 • Record aircraft pu
Slide 6: Net Income and Earnings Per Share
Net Income and Earnings Per Share 4Q 2018 4Q 2017 FY 2018 FY 2017 Net Income ($ million) 232.6 266.3 1,015.6 1,076.2 Diluted Earnings Per Share ($) 1.62 1.67 6.83 6.43 Key Highlights Full Year Results: • For FY 2018, diluted earnings per share increased 6%, primarily driven by the repurchase of 37.7
Slide 7: Book Value Per Share
Book Value Per Share (millions, except per share data) Dec. 31, 2018 Dec. 31, 2017 Total Shareholders’ Equity $8,828 $8,580 Ordinary Shares Outstanding 142.7 153.0 Unvested Restricted Stock (2.4) (3.0) Ordinary Shares Outstanding 140.2 150.0 (excl. Unvested Restricted Stock) Book Value Per Share1 $6
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 4Q 2018 4Q 2017 FY 2018 FY 2017 Basic Lease Rents 1,051.0 1,035.3 4,145.6 4,194.2 Maintenance Rents and Other Receipts 102.3 162.6 391.5 519.6 Net Gain on Sale of Assets 40.8 48.5 201.3 229.1 Other Income 25.5 16.6 61.6 94.6 Total Revenues and Other Income 1,219
Slide 9: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 4Q 2018 4Q 2017 FY 2018 FY 2017 Net Interest Margin (Net Spread)1 749.1 760.4 2,966.3 3,096.0 Average Lease Assets2 36,364 34,748 35,369 34,228 Average Cost of Debt3 4.1% 3.9% 4.1% 3.9% Including all fees Annualized Net Spread 8.2% 8.8% 8.4% 9.0% Annualiz
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 4Q 2018 4Q 2017 FY 2018 FY 2017 Net Gain on Sale of Assets 40.8 48.5 201.3 229.1 4Q 2018 Aircraft Disposal Activity: • 27 aircraft, with an average age of 16 years, were sold from our owned portfolio: • 14 Airbus A320 Family aircraft and 2 Airbus A330s •
Slide 11: Other Expenses
Other Expenses ($ million) 4Q 2018 4Q 2017 FY 2018 FY 2017 Selling, General & Administrative 70.8 96.3 305.2 348.3 Expenses Maintenance Rights Expense 35.6 75.5 157.7 347.8 Other Leasing Costs 90.3 65.7 288.8 190.0 Asset Impairment 15.3 10.4 44.2 61.3 Restructuring Related Expenses − − − 14.6 • Sell
Slide 12: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Over the Last 8 Quarters ($ billion as of December 31, 2018) ($ billion) Sources (for 12 months to December 31, 2019) 11.7 12.0 3.5x Unsecured Revolver 4.0 10.8 11.0 3.3x Other Facilities and Contracted Sales 4.8 10.0 3.1x 10.5 9.
Slide 13: Q&A
GLOBAL LEADER IN AVIATIO Q&A DUBLIN | SHANNON | LOS ANGELES | SINGAPORE | AMSTERDAM | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 14: Supplemental Information
Supplemental Information DUBLIN | SHANNON | LOS ANGELES | SINGAPORE | AMSTERDAM | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 15: Capital Structure
Capital Structure Summary Dec. 31, 2018 Dec. 31, 2017 Adjusted Debt / Equity Ratio 2.86 to 1 2.77 to 1 Adjusted Debt/Equity Calculation ($ million) Dec. 31, 2018 Dec. 31, 2017 Debt (including fair value adjustments) 29,508 28,421 Adjusted for: • Unrestricted cash & cash equivalents (1,204) (1,660) •
Slide 16: High Quality and Well Diversified Portfolio as of December 31, 2018
High Quality and Well Diversified Portfolio as of December 31, 2018 Number of % Net Number of Number of Total Aircraft Type Owned Aircraft Book Value Managed Aircraft on Order Aircraft Aircraft Airbus A320 Family 318 16 41 − 359 Airbus A320neo Family 97 14 − 173 270 Airbus A330 73 9 11 − 84 Airbus A
Slide 17: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2019 2020 2021 2022 2023 Total Airbus A320neo Family 42 49 32 25 25 173 Airbus A350 2 − − − − 2 Boeing 737 MAX 17 24 28 27 3 99 Boeing 787 15 4 6 6 9 40 Embraer E190 / 195-E2 10 13 14 12 − 49 Total Aircraft 86 90 80 70 37 363 17
Slide 18: Endnotes
Endnotes SLIDE 3: AerCap’s Business Model 1. By aircraft value, based on FlightGlobal data, airline company filings and AerCap estimates. SLIDE 7: Book Value Per Share 1. Based on ordinary shares outstanding excluding unvested restricted stock. Unvested restricted stock represents ordinary share uni
Slide 19: AerCap Holdings N.V.
AerCap Holdings N.V. AerCap House 65 St. Stephen’s Green Dublin 2, Ireland +353 1 819 2010 contact@aercap.com Follow us on