Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2023 Earnings Presentation
19 slides from Aercap's earnings presentation, May 2, 2023
Slide 1: First Quarter 2023 Financial Results
FIRST QUARTER 2023 FINANCIAL RESULTS AERCAP HOLDINGS N.V.
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: 1Q 2023 Highlights
1Q 2023 HIGHLIGHTS Back to “Business as Usual” with passenger demand strong across all regions 252 transactions executed in 1Q 2023 Demand for aircraft sales remains robust from a broad base of buyers New $500 million share repurchase program authorized Affirming FY 2023 EPS guidance at higher end o
Slide 4: Airlines Back to Business as Usual
AIRLINES BACK TO BUSINESS AS USUAL Across all regions, airlines are seeing strong demand for air travel as the summer travel period approaches © AerCap - Confidential property of the company, not for disclosure or use without permission 4
Slide 5: Significant Activity Across All Business Lines
SIGNIFICANT ACTIVITY ACROSS ALL BUSINESS LINES AerCap leased, purchased and sold 252 assets in 1Q 2023 ENGINES AIRCRAFT HELICOPTERS 96 TRANSACTIONS 123 TRANSACTIONS 33 TRANSACTIONS 55 76 24 LEASED LEASED LEASED 38 15 3 PURCHASED PURCHASED PURCHASED 3 32 6 SOLD SOLD SOLD © AerCap - Confidential prope
Slide 6: Sales Activity Supported by Broad Buyer Base
SALES ACTIVITY SUPPORTED BY BROAD BUYER BASE Aircraft sales validate our approach to acquisitions, depreciation and portfolio management Quarterly Sales Volumes ($ million) Sales Volume ($) by Buyer Type $1,000 100% $900 90% $800 80% $700 70% Feb-20: Mar-21: Nov-21: $600 A320neo GECAS GECAS 60% ($ m
Slide 7: Recycling Capital Generates Significant Value
RECYCLING CAPITAL GENERATES SIGNIFICANT VALUE VALUE CREATED THROUGH ASSET SALES IN 2022 VALUE CREATED THROUGH SHARE REPURCHASES 2023 YTD $ millions (except share $ millions and per share amounts) Book value of aircraft sold in 2022 $1,947 Excess capital deployed for share repurchases $500 Levered at
Slide 8: 1Q 2023 Net Income Walk
1Q 2023 NET INCOME WALK 1Q 2023 Adjusted Net Income Increase Net income of $432 million, Decrease or $1.79 per share ($ million) Adjusted net income of $566 167 (14) million, or $2.34 per share (19) Purchase accounting adjustments include: 566 432 $43 million related to lease premium amortization af
Slide 9: 1Q 2023 Financial Drivers
1Q 2023 FINANCIAL DRIVERS Basic lease rents of $1,537 million reflected strong cash collections as well as $43 million of lease premium amortization Maintenance rents and other receipts were $187 million, and were negatively impacted by $45 million of maintenance rights assets amortized to revenue N
Slide 10: Strong Liquidity Position
STRONG LIQUIDITY POSITION Next 12 months’ sources-to-uses coverage of 1.3x, with ~$18 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of March 31, 2023) Leverage ratio of 2.56x as of ($ billion) 18.0 Excess March 31, 2023 16.5 ~$5 Coverage 15.0 ~$4 1Q 2023 operating cash flow 13.5
Slide 11: Q&A
Q&A © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 12: Supplemental Information
SUPPLEMENTAL INFORMATION © AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 13: 1Q 2023 Adjusted Net Income and EPS
1Q 2023 ADJUSTED NET INCOME AND EPS ($ million, except per share amounts) Net Income Earnings Per Share ($) Net Income / Earnings Per Share $432 $1.79 Amortization of Maintenance Rights and Lease Premium Assets Recognized under 167 0.69 Purchase Accounting Net Recoveries Related to Ukraine Conflict
Slide 14: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $68.97 as of March 31, 2023 (millions, except per share data) Mar. 31, 2023 Total Shareholders’ Equity $16,045 Ordinary Shares Outstanding 237.5 Unvested Restricted Stock (4.9) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 232.6 Book Value
Slide 15: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation ($ million) Mar. 31, 2023 Dec. 31, 2022 Debt (including fair value adjustments) 46,296 46,533 Adjusted for: Unrestricted cash & cash equivalents (1,089) (1,597) 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 44,082 4
Slide 16: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~68% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED % NET BOOK VALUE NUMBER OF ASSETS MANAGED NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 6 - 3 16 25 Airbus A320 Family 448 10% 67 - 515 Airbus A320neo Fa
Slide 17: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2023 2024 2025 2026 THEREAFTER TOTAL Airbus A220 Family 7 9 - - - 16 Airbus A320neo Family 40 48 42 51 26 207 Airbus A330neo Family 3 8 - - - 11 Boeing 737 MAX 11 19 34 65 - 129 Boeing 787 3 6 10 5 - 24 Embraer E190 / 195-E2 1 11 17 - - 29 Other -
Slide 18: Endnotes
ENDNOTES SLIDE 6: Sales Activity Supported by Broad Buyer Base Owned asset sales only, across aircraft, engines and helicopters. SLIDE 8: 1Q 2023 Net Income Walk Purchase accounting adjustments consist of the amortization of maintenance rights and lease premium assets recognized under purchase accou
Slide 19: Never Stand Still
NEVER STAND STILL PROPERTY OF AERCAP ©2023