Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2016 Earnings Presentation
24 slides from Aercap's earnings presentation, May 12, 2016
Slide 1: First Quarter 2016 Financial Results
First Quarter 2016 Financial Results May 12, 2016 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 events described in the forward-looking statements in this presentation with respect to future performance and events. These statements, might not occur. Accordingly, you
Slide 3: AerCap Investment Case
AerCap Investment Case AerCap is the global leader in aircraft leasing Strong and resilient industry fundamentals Industry leading earnings and profitability Efficient and scalable platform Strong earnings growth profile Strong liquidity and access to capital Hedging strategies to mitigate risk High
Slide 4: Financial Results and Highlights
Financial Results and Highlights Financial Results Highlights ADJUSTED NET INCOME • 131 aircraft transactions, including 36 widebody transactions • $301.6 million for 1Q 2016 ($223.1 million reported) • 99.3% fleet utilization • 6.1 years of average remaining lease term2 • 90% of new aircraft delive
Slide 5: Net Income
Net Income ($ million) 1Q 2016 1Q 2015 Reported Net Income 223.1 311.5 Adjusted for (net o f tax): • Mark-to-market on interest rate caps and swaps 9.7 6.6 • Transaction, integration and restructuring related expenses1 12.6 3.8 • AeroTurbine results excluding restructuring related expenses 12.9 (2
Slide 6: Earnings Per Share
Earnings Per Share ($) 1Q 2016 1Q 2015 Reported Basic Earnings Per Share 1.14 1.47 Adjusted for: • Mark-to-market on interest rate caps and swaps, transaction, integration and restructuring related expenses, AeroTurbine 0.40 (0.05) results and maintenance rights related expenses, all net of tax Ad
Slide 7: Maintenance Rights
Maintenance Rights 1Q 2016 Actual to Date / Outlook ($ million) Adjustment1 ($ million) Post-Tax Adjustment1 2014A (100) Aircraft Depreciation (59.2) 2015A 73 Maintenance Rights 2016E ~150 Depreciation 108.8 Recorded in Leasing Expenses 2017E ~150 2018E ~30 Pre-Tax Income Impact 49.6 2019+E ~(303)
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 1Q 2016 1Q 2015 Basic Lease Rents1 1,139.3 1,157.9 Maintenance Rents and Other Receipts2 150.4 68.2 Net Gain on Sale of Assets 19.0 33.7 Other Income3 9.3 29.4 Total Revenues and Other Income 1,318.0 1,289.2 (1) The decrease is primarily due to the sale of older
Slide 9: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 1Q 2016 1Q 2015 Net Interest Margin (Net Spread)1 865.7 877.9 Average Lease Assets2 35,518 36,378 Annualized Net Spread % 9.8 9.7 AerCap continues to deliver consistent margins (1) Net Interest Margin is calculated as basic lease rents less interest expen
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 1Q 2016 1Q 2015 Net Gain on Sale of Assets 19.0 33.7 1Q 2016 Disposal Activity: • 19 aircraft, with an average age of 14 years, were sold from our owned portfolio: • 3 Airbus A320-200s and 1 Airbus A321-100 • 3 Boeing 737NGs, 1 Boeing 737 Classic, 2 Boe
Slide 11: Other Expenses
Other Expenses ($ million) 1Q 2016 1Q 2015 Leasing Expenses 167.4 89.7 Selling, General & Administrative Expenses 87.0 95.1 Asset Impairment 44.6 4.7 Transaction, Integration and Restructuring Related 12.6 4.4 Expenses1 • The increase in leasing expenses is primarily due to an increase in maintenanc
Slide 12: Cash
Cash ($ million) 1Q 2016 1Q 2015 Cash and Cash Equivalents as of March 31 2,929.2 1,594.0 (excluding restricted cash) Total Cash Balance as of March 31 3,327.5 1,928.0 (including restricted cash) Operating Cash Flow for the First Quarter 838.8 760.6 Annual run rate for operating cash flow is over $3
Slide 13: Liquidity Position
Liquidity Position Maintaining a significant level of back-up liquidity is a key priority Sources vs. Uses (Next 12 Months) Liquidity L evels Since ILFC Acquisition As of March 31, 2016 3 .0 x Sources (for 1 2 months to Mar. 3 1, 2 017, $ b illion) 1Q 2016 ($ billion) 9.5 9.2 9.1 2 .8 x Unsecured R
Slide 14: Capital Structure
Capital Structure Summary 1Q 2016 1Q 2015 Average Cost o f Debt (including all fees)1 3.7% 3.7% Debt / Equity Ratio 2.8 to 1 3.2 to 1 Debt/Equity Calculation ($ million) 1Q 2016 1Q 2015 Debt at Quarter-End (including fair value adjustments) 29,813 30,257 Adjusted for: • Unrestricted cash & cash equ
Slide 15: Financial Outlook
Financial Outlook DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 16: 2016 Core Financial Outlook - Adjusted Basis
2016 Core Financial Outlook - Adjusted Basis Outlook for 2016 core earnings is comparable to 2015 (~$5.50 EPS1) ~$4.8 ~$1.2 ~$1.0 ~$35 billion billion billion billion TOTAL PRE-TAX CORE AVERAGE REVENUE EARNINGS NET INCOME LEASE ASSETS 2016 Costs: • Depreciation of ~$2.0 b illion, which includes ex
Slide 17: Q&A
GLOBAL LEADER IN AVIATIO Q&A DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 18: Supplemental Information
Supplemental Information DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 19: Executed 131 Aircraft Transactions – 1Q 2016
Executed 131 Aircraft Transactions – 1Q 2016 AerCap continues to lease or sell an aircraft on average every 24 hours, consisting of two widebody and five narrowbody aircraft transactions per week 100 6 25 LEASE AIRCRAFT AIRCRAFT AGREEMENTS PURCHASED DISPOSED EXECUTED Sale or part-out: including: 19
Slide 20: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio (%) 1Q 2016 1Q 2015 Utilization Rate1 99.3 99.4 Portfolio Yield2 14.5 13.5 Lease Portfolio (Years) 1Q 2016 1Q 2015 Average Lease Term (Previous 12 months) • Leases for New Aircraft 11.7 3 11.8 • Leases for Used Aircraft 5.8 4 4.4 Averag
Slide 21: High Quality and Well Diversified Portfolio as of March 31, 2016
High Quality and Well Diversified Portfolio as of March 31, 2016 Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order 2 Total Aircraft Owned Aircraft1 AerDragon Aircraft Airbus A319 137 7 11 - 148 Airbus A320 228 15 32 - 260 Airbus A320neo Family - - - 209 209 Airbus A
Slide 22: Forward Order & Purchase/Leasebacks as of March 31, 2016
Forward Order & Purchase/Leasebacks as of March 31, 2016 Remaining (Unit) 2017 2018 2019 2020 Thereafter Total 2016 Airbus A320neo Family 19 40 50 40 40 20 209 Airbus A350 10 11 6 - - - 27 Boeing 737MAX - - 6 23 25 55 109 Boeing 787 8 17 15 6 - - 46 Embraer E190 / 195-E2 - - 5 14 14 17 50
Slide 23: Maintenance Rights
Maintenance Rights 1Q 2016 1Q 2016 1Q 2016 ($ million) Reported Amount Adjusted Amount Adjustment Depreciation and Amortization (466.6) (525.8) (59.2) Leasing Expenses (167.4) (58.6) 108.8 Pre-Tax Income Impact 49.6 Net Income Impact 43.3 3 23 4
Slide 24: AerCap La Touche House IFSC
AerCap La Touche House IFSC Dublin 1, I reland +353 1 819 2010 contact@aercap.com