Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2017 Earnings Presentation
19 slides from Aercap's earnings presentation, May 9, 2017
Slide 1: First Quarter 2017 Financial Results
First Quarter 2017 Financial Results May 9, 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 with not rely upon forward-looking statements as a prediction of actual results respect to future performance and events. These statements, estimates and we do not assume
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: 1Q 2017 Financial Results and Highlights
1Q 2017 Financial Results and Highlights Financial Results Highlights • 105 aircraft transactions, including 22 widebody Net Income transactions • 99.7% fleet utilization ($ million) 1Q 2017 • 7.3 years average age of owned fleet and Net Income 261.2 6.5 years average remaining lease term • Signed f
Slide 5: Net Income
Net Income ($ million) 1Q 2017 1Q 2016 Net Income 261.2 223.1 Key Highlights • 1Q 2017 net income up significantly over 1Q 2016 (+17%) primarily driven by higher gain on sale of assets and lower maintenance rights expense, partially offset by lower income as a result of the sale of mid-life and olde
Slide 6: Earnings Per Share
Earnings Per Share ($) 1Q 2017 1Q 2016 Diluted Earnings Per Share 1.48 1.13 Key Highlights • 1Q 2017 diluted earnings per share up significantly over 1Q 2016 (+31%) impacted by the same factors as net income as well as the repurchase of 31.6 million shares for $1.3 billion during FY 2016 and 1Q 2017
Slide 7: Book Value Per Share
Book Value Per Share % Incr/ % Incr/ Mar. 31, Dec. 31, Mar. 31, (Decr) (Decr) ($ million except share data) 2017 2016 2016 over Dec. over Mar. 31, 2016 31, 2016 Total Shareholders’ Equity $8,520 $8,524 $8,393 0% 2% Ordinary Shares Outstanding 169.9 176.2 195.6 Unvested Restricted Stock (3.5) (3.4) (
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 1Q 2017 1Q 2016 Basic Lease Rents 1,067.1 1,139.3 Maintenance Rents and Other Receipts 89.9 150.4 Net Gain on Sale of Assets 47.3 19.0 Other Income 32.5 9.3 Total Revenues and Other Income 1,236.8 1,318.0 • Basic lease rents decreased primarily due to the sale o
Slide 9: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) Net Interest Margin ($ million) 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Annualized Net Spread 9.2% 9.8% 787.9 865.7 Average Cost of Debt Net Interest Margin is calculated as basic lease Including all fees1 4.0% 3.7% rents less interest expense, excluding the non-cash charges
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 1Q 2017 1Q 2016 Net Gain on Sale of Assets 47.3 19.0 1Q 2017 Disposal Activity: • 21 aircraft, with an average age of 15 years, were sold from our owned portfolio: • 2 Airbus A319-100s, 7 Airbus A320-200s, 1 Airbus A321-100, 4 Airbus A330-200s and 1 Airbu
Slide 11: Other Expenses
Other Expenses ($ million) 1Q 2017 1Q 2016 Leasing Expenses1 122.4 167.4 Selling, General & Administrative Expenses 83.5 87.0 Asset Impairment − 44.6 Restructuring Related Expenses 9.9 12.6 • Leasing expenses decreased in 1Q 2017 as a result of lower maintenance rights expense due to fewer maintenan
Slide 12: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Since July 2014 ($ billion as of March 31, 2017) ($ billion) Sources (for 12 months to March 31, 2018) 10.5 10.0 3.0x Unsecured Revolver 3.7 9.5 9.5 9.2 2.8x 9.1 9.0 Other Facilities and Contracted Sales 3.9 9.0 2.6x Unrestricted
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: Leasing Expenses
Leasing Expenses ($ million) 1Q 2017 1Q 2016 Maintenance Rights Expense 73.0 108.8 Other Leasing Costs 49.4 58.6 Total Leasing Expenses 122.4 167.4 • Leasing expenses decreased in 1Q 2017 as a result of lower maintenance rights expense due to fewer maintenance events during the period • As a result
Slide 16: Capital Structure
Capital Structure Summary Mar. 31, 2017 Dec. 31, 2016 Adjusted Debt / Equity Ratio 2.7 to 1 2.7 to 1 Adjusted Debt/Equity Calculation ($ million) Mar. 31, 2017 Dec. 31, 2016 Debt (including fair value adjustments) 27,521 27,717 Adjusted for: • Unrestricted cash & cash equivalents (1,936) (2,035) • 5
Slide 17: High Quality and Well Diversified Portfolio as of March 31, 2017
High Quality and Well Diversified Portfolio as of March 31, 2017 Number of Number of % Net Aircraft Total Aircraft Type Managed & Owned Aircraft Book Value on Order Aircraft AerDragon Aircraft Airbus A319 123 6 11 − 134 Airbus A320 198 13 28 − 226 Airbus A320neo Family 22 3 − 198 220 Airbus A321 81
Slide 18: Forward Order & Purchase/Leasebacks as of March 31, 2017
Forward Order & Purchase/Leasebacks as of March 31, 2017 Remaining (Unit) 2018 2019 2020 2021 Thereafter Total 2017 Airbus A320neo Family 41 39 48 40 30 − 198 Airbus A350 8 4 2 − − − 14 Boeing 737MAX − 3 24 27 28 27 109 Boeing 787 16 13 6 2 2 − 39 Embraer E190 / 195-E2 − 5 14 14 14 3 50 Total Units
Slide 19: AerCap Holdings N.V. contact details
AerCap Holdings N.V. AerCap House 65 St. Stephen’s Green Dublin 2, Ireland +353 1 819 2010 contact@aercap.com Follow us on