Slide 1: Fourth Quarter 2016 Financial Results
Fourth Quarter 2016 Financial Results February 21, 2017 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 Resilient industry fundamentals Global platform with unmatched breadth and reach Strong earnings and cash flow generation Disciplined portfolio management Strong liquidity and access to capital Hedging strategies to mitigate risk
Slide 4: 2016 Financial Results and Highlights
2016 Financial Results and Highlights Financial Results Highlights • 458 aircraft transactions in 2016, including Net Income (US GAAP) 126 widebody transactions • 99.5% fleet utilization 4Q FY ($ million) 2016 2016 • 7.4 years average age of owned fleet and 6.4 years average remaining lease term Net
Slide 5: Net Income
Net Income ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Reported Net Income (US GAAP) 364.7 264.2 1,046.6 1,178.7 Key Highlights 4Q Results: • 4Q 2016 reported net income (US GAAP) up significantly over 4Q 2015 (+38%) driven by higher gains on sale and other non-recurring items, as well as lower Aero
Slide 6: Earnings Per Share
Earnings Per Share ($) 4Q 2016 4Q 2015 FY 2016 FY 2015 Reported Diluted Earnings Per Share 2.01 1.33 5.52 5.72 Key Highlights 4Q Results: • 4Q 2016 reported diluted earnings per share (US GAAP) up significantly over 4Q 2015 (+51%) driven by higher gains on sale and other non-recurring items, as well
Slide 7: Book Value Per Share
Book Value Per Share ($ million except Book Value Per Share) Dec. 31, 2016 Dec. 31, 2015 % Incr/(Decr) over Dec. 31, 2015 Total Shareholders’ Equity $8,524 $8,349 2% Ordinary Shares Outstanding 176.2 200.3 Unvested Restricted Stock (3.4) (3.0) Ordinary Shares Outstanding 172.8 197.3 (12%) (excl. Unv
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Basic Lease Rents 1,061.8 1,148.8 4,395.3 4,635.8 Maintenance Rents and Other Receipts 159.1 136.7 472.3 355.8 Net Gain on Sale of Assets 58.7 43.4 138.5 183.3 Other Income 89.0 9.1 146.0 112.7 Total Revenues and Other Income 1,36
Slide 9: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Net Interest Margin (Net Spread)1 790.5 874.3 3,305.0 3,554.0 Average Lease Assets2 34,192 35,836 34,857 36,311 Annualized Net Spread 9.3% 9.8% 9.5% 9.8% Average Cost of Debt 3.9% 3.7% 3.7% 3.6% (including all fees)3 Averag
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Net Gain on Sale of Assets 58.7 43.4 138.5 183.3 4Q 2016 Disposal Activity: • 37 aircraft, with an average age of 15 years, were sold from our owned portfolio: • 2 Airbus A319-100s, 11 Airbus A320-200s, 2 Airbus A321-100s,
Slide 11: Other Expenses
Other Expenses ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Leasing Expenses 143.3 126.3 582.5 522.4 Selling, General & Administrative 96.8 103.6 351.0 381.3 Expenses Asset Impairment 11.4 1.0 81.6 16.3 Transaction, Integration and 8.3 50.8 53.4 58.9 Restructuring Related Expenses • SG&A expenses dec
Slide 12: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Since July 2014 ($ billion as of December 31, 2016) ($ billion) Sources (for 12 months to December 31, 2017) 10.5 10.0 3.0x Unsecured Revolver 3.0 9.5 9.2 2.8x 9.1 9.0 Other Facilities and Contracted Sales 4.5 9.0 2.6x Unrestricte
Slide 13: 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 14: Supplemental Information
Supplemental Information DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 15: Adjusted Net Income As Previously Reported
Adjusted Net Income As Previously Reported Following the SEC’s issuance of updated guidance on the use of non-GAAP financial measures, the Company will no longer report adjusted net income. Below is a reconciliation of reported net income to adjusted net income, as previously reported, which is prov
Slide 16: Adjusted Earnings Per Share As Previously Reported
Adjusted Earnings Per Share As Previously Reported Following the SEC’s issuance of updated guidance on the use of non-GAAP financial measures, the Company will no longer report adjusted earnings per share. Below is a reconciliation of reported earnings per share to adjusted earnings per share, as pr
Slide 17: Leasing Expenses
Leasing Expenses ($ million) 4Q 2016 4Q 2015 FY 2016 FY 2015 Maintenance Rights Expense 94.5 85.0 381.6 348.4 Other Leasing Costs 48.8 41.3 200.9 174.0 Total Leasing Expenses 143.3 126.3 582.5 522.4 • As a result of purchase accounting, a portion of the acquired ILFC aircraft value is classified as
Slide 18: Capital Structure
Capital Structure Summary Dec. 31, 2016 Dec. 31, 2015 Adjusted Debt / Equity Ratio 2.7 to 1 2.9 to 1 Adjusted Debt/Equity Calculation ($ million) Dec. 31, 2016 Dec. 31, 2015 Debt (including fair value adjustments) 27,717 29,642 Adjusted for: • Unrestricted cash & cash equivalents (2,035) (2,403) • 5
Slide 19: High Quality and Well Diversified Portfolio as of December 31, 2016
High Quality and Well Diversified Portfolio as of December 31, 2016 Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order Total Aircraft Owned Aircraft AerDragon Aircraft Airbus A319 125 6 11 - 136 Airbus A320 205 13 29 - 234 Airbus A320neo Family 15 2 - 204 219 Airbus A321
Slide 20: Forward Order & Purchase/Leasebacks as of December 31, 2016
Forward Order & Purchase/Leasebacks as of December 31, 2016 (Unit) 2017 2018 2019 2020 2021 Thereafter Total Airbus A320neo Family 39 47 48 40 30 - 204 Airbus A350 10 7 2 - - - 19 Boeing 737MAX - 6 23 25 28 27 109 Boeing 787 18 14 6 - - - 38 Embraer E190 / 195-E2 - 5 14 14 14 3 50 Total Units 67 79
Slide 21: AerCap contact details
AerCap AerCap House 65 St. Stephen’s Green Dublin 2, Ireland +353 1 819 2010 contact@aercap.com Follow us on