Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2023 Earnings Presentation
22 slides from Aercap's earnings presentation, Feb 23, 2024
Slide 1: AerCap 4th Quarter Financial Results
AERCAP | TH QUARTER 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 performance and events. These statements, estimates and forecasts are “forward-looking statements’, In some cases, forward-looking statements ca
Slide 3: Key Highlights
KEY HIGHLIGHTS Record 2023 GAAP Net Income of $3.1 Billion, Adjusted Net Income of $2.4 Billion Demand Continues to Outstrip Supply Across Aircraft, Engines and Helicopters AE RCAP | Recovered $1.3 Billion in Insurance Settlement Proceeds to Date Returned $2.6 Billion to Shareholders in 2023; New $5
Slide 4: Supply Issues Increase Demand for Older Aircraft
SUPPLY ISSUES INCREASE DEMAND FOR OLDER AIRCRAFT 2023 commercial aircraft deliveries remain behind even 2015 levels, while increasing engine reliability issues are reflected in increased storage rates for younger aircraft OEM Deliveries Remain Below Even 2015 Levels Number of Stored Aircraft by Age
Slide 5: Capital Recycling Trade - Highly Accretive
CAPITAL RECYCLING TRADE - HIGHLY ACCRETIVE Robust demand for mid-life and older aircraft continues to support secondary sales at attractive margins, freeing up capital to deploy into share repurchases at discounted prices Quarterly Sales Volumes and Transactions 2023 Asset Sales 2023 Asset Sales and
Slide 6: Strong Book Value Per Share Growth Continues
STRONG BOOK VALUE PER SHARE GROWTH CONTINUES As a result of the strong underlying performance of the business, insurance recoveries and discounted share repurchases, AerCap’s book value per share has grown by a CAGR of 20% since March 2022 AerCap Book Value Per Share Grow’ ion of Capital Returned to
Slide 7: 4Q 2023 Net Income Walk
4Q 2023 NET INCOME WALK 4Q 2023 Adjusted Net Income Net income of $1.1 billion, or $5.37 per share Increase Decrease Adjusted net income of $641 million, or $3.11 per share Purchase accounting 66 adjustments include: (614) 83 $40 million related to lease premium amortization affecting basic lease re
Slide 8: 4Q 2023 Financial Drivers
4Q 2023 FINANCIAL DRIVERS Basic lease rents were $1,576 million, and were negatively impacted by $40 million of lease premium amortization Maintenance rents and other receipts were $142 million, and were negatively impacted by $25 million of maintenance rights assets amortized to revenue Net gain on
Slide 9: Full Year 2023 Net Income Walk
FULL YEAR 2023 NET INCOME WALK Net income of $3.1 billion, (neice or $13.78 per share Decrease Adjusted net income of $2.4 billion, or $10.73 per share 99 Purchase accounting (1,288) 495 . 3,136 adjustments include: $166 million related to lease premium amortization affecting basic lease rents GAAP
Slide 10: Strong Liquidity Position
STRONG LIQUIDITY POSITION Leverage ratio of 2.47x 4Q 2023 operating cash flow pores of $1.4 billion, and a record $5.3 ' Excess ' billion for FY 2023 ! Coverage ! ! ~$6 H 4 te > Secured debt-to-total-assets ratio 12 ~$2 of ~14% 10 8 Average cost of debt of 3.7% in 4Q 6 ~$9 2023 4 aT . 5 ~10.3 millio
Slide 11: Guidance 2024
AERCAP GUIDANCE 2024 © AerCap -Confidential property of the company, not for disclosure or use without permission
Slide 12: Walk from 2023 EPS to Estimated 2024 EPS
WALK FROM 2023 EPS TO ESTIMATED 2024 EPS Estimated 2024 EPS of $7.50 - $8.50, not including any gains on sale Walk from 2023 EPS to Estimated 2024 EPS ~(0.70) I iO ~(0.57) ~0.42 $8.50 Not Including Any Gains on Sale 2023 EPS 2023 Gains on Sale* PBH Rent Received Tax Benefits in Other* Estimated in 2
Slide 13: 2024 Projected Income Statement
2024 PROJECTED INCOME STATEMENT (§ billion, except per share amounts) Projected FY 2024 > We expect to generate Lease Revenue $6.3 adjusted EPS of $7.50 - $8.50, Maintenance Rents 0.7 not including any gains on sale Other Income 0.3 Assumes cash capex of ~$7.2 Total Revenue $7.2 billion Depreciation
Slide 14: Q&A
Slide 15: © AerCap - property of the
© AerCap - Confidential property of the company, not for disclosure or use without permission
Slide 16: Adjusted Net Income and EPS Reconciliation
ADJUSTED NET INCOME AND EPS RECONCILIATION 4Q 2023 FY 2023 ($ million, except per share amounts) Net Income Earning shed Net Income Eamingsiney , Share ($) Share ($) Net Income / Earnings Per Share 1,106 5.37 3,136 13.78 > Net Recoveries Related to Ukraine Conflict (614) (2.98) (1,288) (5.66) > Amor
Slide 17: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $83.81 as of December 31, 2023 (millions, except per share data) Dec. 31, 2023 Total Shareholders’ Equity $16,589 Ordinary Shares Outstanding 202.5 Unvested Restricted Stock (4.6) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 197.9 Book Va
Slide 18: Capital Structure
CAPITAL STRUCTURE Adjusted Debt/Equity Calculation (§ million) Dec. 31, 2023 Dec. 31, 2022 Debt (including fair value adjustments) 46,484 46,533 Adjusted for: > Unrestricted cash & cash equivalents (1,627) (1,597) > 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 43,7
Slide 19: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~70% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED ET BOOK VALUE = NUMBEROF ASSETS MANAGED NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 9 1% 6 10 25 Airbus A320 Family 428 % 63 - 41 Airbus A320neo Family
Slide 20: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2024 2025 2026 2027 2028 THEREAFTER TOTAL Airbus A220 Family 10 - - - - - 10 Airbus A320neo Family 43 45 33 22 5 - 148 Airbus A330neo Family 8 - - - - - 8 Boeing 737 MAX 17 32 38 33 - - 120 Boeing 787 4 10 5 - - - 19 Embraer E190 / 195-E2 10 18 -
Slide 21: Endnotes
ENDNOTES SLIDE 4: Supply Issues Increase Demand for Older Aircraft OEM Deliveries: Airbus and Boeing Annual Commercial Aircraft Deliveries for 2015-2023. Undelivered versus the total number of aircraft delivered by Airbus and Boeing in 2018. Aircraft in Storage: Cirium, as of February 4, 2024, month
Slide 22: AERCAP |
AERCAP | =R STAND STILL PROPERTY OF AERCAP ©2024