AerCap Holdings N.V. · NYSE:AER
AerCap — J.P. Morgan Conference March 2023
22 slides from AerCap's conference presentation, March 2023
Slide 1: J.P. Morgan Conference Presentation
J.P. MORGAN CONFERENCE PRESENTATION AERCAP HOLDINGS N.V. MARCH 2023
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: Today's Presenter
TODAY’S PRESENTER Peter Juhas Chief Financial Officer © AerCap - Confidential property of the company, not for disclosure or use without permission 3
Slide 4: AerCap Highlights
AERCAP HIGHLIGHTS Track record of best-in-class execution and clear runway to capitalize on favorable industry dynamics The Global Leader in Aviation Leasing Favorable Leasing Environment Driven by Supply/Demand Imbalance GECAS Integration Successfully Completed Proven Business Model Resilience Posi
Slide 5: The Global Leader in Aviation Leasing
THE GLOBAL LEADER IN AVIATION LEASING AerCap is the World’s Largest Lessor with Total Lease Assets of ~$60 Billion ~1,800 >900 >300 >430 ~300 Aircraft Engines Helicopters Aircraft on Order Customers 15% 16% 25% This is only a selected group of lessors LEASING MARKET SHARE BY FLEET SIZE 44% See Suppl
Slide 6: Demand: Strong Air Travel Recovery Continues
DEMAND: STRONG AIR TRAVEL RECOVERY CONTINUES Rebound in daily flight traffic is driving storage rates lower and airline revenues higher Total Daily Flights as a % of 2019 by Region Storage Rates for New Technology Aircraft Global Airline Revenues ($bn) 100% 30% 900 $838 89% $812 90% 87% 800 25% $755
Slide 7: Supply: Aircraft Deliveries Well Below Expectations
SUPPLY: AIRCRAFT DELIVERIES WELL BELOW EXPECTATIONS 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 remains 1200 Narrowbody Aircraft constrained, with delivery 1000 409 431 27
Slide 8: GECAS Integration Successfully Completed
GECAS INTEGRATION SUCCESSFULLY COMPLETED All aspects of the GECAS integration have been completed, including the integration of people, locations, systems and processes Global New Attractive Improved Leader & Technology New Business Credit Strategic Focused Fleet Lines Profile Partner Created an ind
Slide 9: 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 10: Proven Business Model Resilience
PROVEN BUSINESS MODEL RESILIENCE Strong credit profile maintained throughout the most extreme stress tests Adjusted Debt to Equity Ratio1 Secured Debt / Total Assets 3.4x 30% 3.2x 25% 3.0x 20% 2.8x 15% 2.6x 2.4x 10% 2.2x 5% 2.0x 0% 1Q18 4Q18 3Q19 2Q20 1Q21 4Q21 4Q22 1Q18 4Q18 3Q19 2Q20 1Q21 4Q21 4Q2
Slide 11: Strength of Leasing Model Highlighted by Covid
STRENGTH OF LEASING MODEL HIGHLIGHTED BY COVID AerCap’s cash flow from operations remained resilient through Covid-19, in contrast to other industry players Cash Flow from Operations (Cumulative 2020 – 2022, Indexed to 2019) AerCap’s Actions During COVID-19 500 354 • Demonstrated resilience during a
Slide 12: Significant Outperformance in 2022
SIGNIFICANT OUTPERFORMANCE IN 2022 Strong fourth quarter results cap a year of recovery Total revenue of ~$2.2B of asset De-levered to 2.5x, Adjusted net ~$7.0B sales at an average below our leverage income of ~$2.2B gain on sale of target of 2.7x ~12% Adjusted EPS of Sources-to-uses of $9.01 ~$5.2B
Slide 13: Upward Ratings Trajectory
UPWARD RATINGS TRAJECTORY Following recent upgrades from Moody’s and Fitch, AerCap now has mid-BBB ratings from all three major rating agencies BBB Baa2 BBB Stable Stable MAR. 2023 Stable Fitch upgrades AerCap to BBB FEB. 2023 Moody’s upgrades OCT. 2022 AerCap to Baa2 Moody’s places AerCap on positi
Slide 14: GE Secondary Offering and Concurrent Repurchase
GE SECONDARY OFFERING AND CONCURRENT REPURCHASE This transaction represented the first monetization of GE’s stake in AerCap Acquisition Overview GE Secondary Offering and Transaction Highlights GE Ownership Concurrent Share Repurchase • On November 1, 2021, AerCap • On March 7, 2023, GE launched a •
Slide 15: 2023 Outlook
2023 OUTLOOK Strong air travel recovery and ongoing supply/demand imbalance driving positive expected performance in 2023 ~$6.8B of cash ~$5B of operating Maintain strong ~$1.7B of adjusted capex cash flow and liquidity and net income, ~$2.5B of asset manage to our 2.7x excluding gains 79 deliveries
Slide 16: Never Stand Still
NEVER STAND STILL PROPERTY OF AERCAP ©2023
Slide 17: Supplemental Information
SUPPLEMENTAL INFORMATION © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 18: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation ($ 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 43,8
Slide 19: Full Year 2022 Adjusted Net Income and EPS
FULL YEAR 2022 ADJUSTED NET INCOME AND EPS FY 2022 (Loss) / Earnings ($ million, except per share amounts) Net (Loss) / Income Per Share ($) Net Loss / Loss Per Share (726) (3.02) • Amortization of Maintenance Rights and Lease Premium Assets Recognized under Purchase Accounting1 629 2.59 • Net Charg
Slide 20: 2023 Projected Income Statement
2023 PROJECTED INCOME STATEMENT ($ billion, except EPS) FY 2023E • We expect to generate adjusted EPS of $7.00 - Total Revenue $6.8 $7.50, not including any gains on sale Interest Expense (1.8) • Assumes cash capex of ~$6.8 billion Depreciation (2.5) • Assumes sales of ~$2.5 billion Leasing Expenses
Slide 21: Endnotes
ENDNOTES SLIDE 5: THE GLOBAL LEADER IN AVIATION LEASING Total lease assets of approximately $60 billion refers to AerCap's long-lived assets, including flight equipment held for SLIDE 11: STRENGTH OF LEASING MODEL HIGHLIGHTED BY COVID operating leases, flight equipment held for sale, investment in f
Slide 22: Thank You
THANK YOU PROPERTY OF AERCAP ©2023