Slide 1: AerCap Holdings N.V. First Quarter 2013 Earnings Call
AerCap Holdings N.V. First Quarter 2013 Earnings Call May 7, 2013
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 be
Slide 3: First Quarter 2013 Headlines/ Financial Highlights
First Quarter 2013 Headlines/ Financial Highlights Adjusted net income and earnings per share for the first quarter 2013 was $68.0 million and $0.60 respectively, (first quarter 2013 adjusted earnings per share increased 22% over first quarter 2012). During the first quarter of 2013: - $0.4 bill
Slide 4: Net Income
Net Income ($ Millions) 1Q 2013 1Q 2012 Reported Net Income 67.5 65.0 Adjusted for: mark-to-market on interest rate caps * (1.3) 2.8 Adjusted for: cost of share-based compensation* 1.8 1.3 Adjusted Net Income** 68.0 69.1 * The adjustment is reduced for the tax impact as well as the amount relating t
Slide 5: Earnings Per Share
Earnings Per Share 1Q 2013 1Q 2012 Earnings Per Share $0.59 $0.46 Adjusted for: mark-to-market on interest rate caps and 0.01 0.03 share based compensation Adjusted Earnings Per Share* $0.60 $0.49 Average Shares Outstanding (Million) 113.4 139.9 * The increase in adjusted earnings per share was driv
Slide 6: Revenue
Revenue ($ Millions) 1Q 2013 1Q 2012 Basic Lease Rents 212.9 235.1 Maintenance Rents and Other Receipts 13.9 17.6 Management Fee and Interest Revenue 7.1 5.2 Other Revenue 0.9 0.2 Net Gain/(Loss) on Sales of Assets 11.0 (0.2) Total Revenue 245.8 257.9 6
Slide 7: Net Interest Margin (Net Spread) – First Quarter 2013
Net Interest Margin (Net Spread) – First Quarter 2013 ($ Millions) 1Q 2013 1Q 2012 Net Interest Margin (Net Spread) 152.9 174.4 Annualized Margin % 8.3% 8.8% * Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding non-cash charges relating to the mark-to- market of i
Slide 8: Sales of Assets
Sales of Assets AerCap continues to optimize its portfolio through the sale of aircraft: In the first quarter of 2013, we sold one A330, one B737-800 and one MD-11 freighter aircraft. In the first quarter of 2012, we sold one A330 and one B757. ($ Millions) 1Q 2013 1Q 2012 Pre-tax Gain/(Loss) from A
Slide 9: Expenses/Taxes
Expenses/Taxes ($ Millions) 1Q 2013 1Q 2012 Leasing Expenses 14.9 18.5 SG&A* 20.2 16.3 Impairment Charge** 2.7 - Blended Tax Rate *** 8.0% 5.2% * Increase in SG&A was driven primarily by the movement in the mark-to-market of foreign currency and other derivatives which was partially offset by lower
Slide 10: Cash
Cash ($ Millions) Q1 2013 Q1 2012 Cash and Cash Equivalents at March 31 375.4 424.7 (Excl. Restricted Cash) Total Cash Balance at March 31 663.7 728.3 (Incl. Restricted Cash) Operating Cash Flow for the Quarter 148.9 166.5 Note: An undrawn working capital facility of $290 million was also available
Slide 11: Debt and Equity
Debt and Equity ($ Millions) 1Q 2013 1Q 2012 Total Debt at Quarter-End 5,794 6,177 Average Cost of Debt (including ~0.4% 4.0% 3.9% relating to amortization of debt issuance costs)* Equity** 2,194 2,348 Debt / Equity Ratio 2.6 to 1 2.6 to 1 * Interest expense divided by average debt balance, excludin
Slide 12: 2013 Financial Outlook
2013 Financial Outlook Set forth below are the expected drivers for AerCap’s 2013 financial performance, which are subject to change. 2013 committed aircraft purchases are ~$1.1 billion. 2013 maintenance contribution (maintenance & end-of-lease revenue less leasing expenses) is expected to be mi
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Aircraft Transactions First Quarter 2013
Aircraft Transactions First Quarter 2013 13 aircraft lease agreements & letters-of-intent executed 9 aircraft delivered to lessees 9 aircraft purchased 3 aircraft sold from our owned portfolio and 2 aircraft sold or subject to letters of intent for sale from our managed portfolio 14
Slide 15: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q1 2013 Q1 2012 ($ Millions) 9,256 10,000 8,649 8,000 7% decrease Total Assets 6,000 over Q1 2012 Owned and on (Primarily attributable to Balance Sheet the sale of the ALS 4,000 portfolio, now a managed asset, and partially offset by new aircraft deliveries.) 2,00
Slide 16: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of March 31, 2013 Number of Aircraft Managed under Sale Number of & / Purchase Owned % Net Book AerDragon Aircraft on Contract Total Aircraft Value Aircraft Order or LOI Aircraft Airbus A300 Freighter 0 0.0% 1 0 0 1 72% narrow body
Slide 17: Aircraft Portfolio Valuation – As of March 31, 2013
Aircraft Portfolio Valuation – As of March 31, 2013 ($ Billion) Carrying External Value or Difference Appraisers Price Paid A320 Family, A330s, & B737NGs 8.1 8.8 9% (~98% of Portfolio) B737 Classics and All Others 0.2 0.2 - (~2% of Portfolio) Total Aircraft Assets 8.3 9.0 8% Notes: - Based on data a
Slide 18: Aircraft Portfolio Valuation (Based on PV of Rent & Residual Values)
Aircraft Portfolio Valuation (Based on PV of Rent & Residual Values) ($ Billion) Carrying PV of PV of Total Value / Contracted Residual Present Difference Price Paid Rent Value Value Future Value 8.3 5.3 3.7 9.0 8% Based on 3 Appraisers Future Value 8.3 5.3 3.8 9.1 10% Based on Ascend Notes: - Based
Slide 19: Committed Aircraft Purchases
Committed Aircraft Purchases 1Q 2013 Remaining Committed 2013* 2013 Aircraft Purchases 412 705 1,117 ($ Millions) Number of Aircraft 9 16 25 Purchases (Units) *Includes 12 committed aircraft as part of the American Airlines purchase-leaseback transaction. 19
Slide 20: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio 1Q 2013 FY 2012 Utilization Rate* 99.6% 98.5% Portfolio Yield** 12.3% 12.7% Average Term (Previous 12 Months) – New Leases for New Aircraft (Months) 150*** 149 – New Leases for Used Aircraft (Months) 68**** 66 *Days utilized weighted by the
Slide 21: Leasing Expenses
Leasing Expenses ($ Millions) 1Q 2013 1Q 2012 Default & Restructuring Related* 1.6 13.0 Normal Transition Costs 6.4 2.9 Lessor Maintenance Contributions 6.3 1.0 Other Leasing Costs 0.6 1.6 Total Leasing Expenses 14.9 18.5 * 2013 default and restructuring related costs were due to defaults and restru
Slide 22: SG&A
SG&A ($ Millions) 1Q 2013 1Q 2012 Mark-to-market of: foreign currency hedges, foreign currency cash 0.6 (4.9) balances, and other derivatives Share-based compensation expenses 2.1 1.5 Other Selling, General and 17.5 19.7 Administrative expenses* Total Selling, General and 20.2 16.3 Administrative ex