Avolon — Q1 2015 Earnings Presentation
19 slides from Avolon's earnings presentation, May 6, 2015
Slide 1: 2015 First Quarter Earnings Presentation
May 2015 Exhibit 99.2 2015 First Quarter | Earnings Presentation
Slide 2: Strong Growth and Disciplined Risk Management
Strong Growth and Disciplined Risk Management Q1 2015 2.6 Average Fleet Age 7.1 Lease Term Remaining 4.5 Debt WAL Match Funded DISCIPLINED RISK MANAGEMENT Q1 Q1 Change Adjusted Net Income Net Income Commitments 4,871 6,976 +34% +36% +43% Cost of Funds 4.25% 3.73% -52bps STRONG GROWTH Non-GAAP measur
Slide 3: Continued Momentum Across the Business
Continued Momentum Across the Business Q1 2015 2015 2016 2017 $434 million of New Aircraft Deliveries $14.6 million Gains $841 million of New Commitments $675 million Debt Facility $203 million of Letters of Intent Signed in the Quarter for the Sale of Aircraft Aircraft Volume ($ millions) $145 mill
Slide 4: Delivering Robust Fleet Growth
Delivering Robust Fleet Growth 4.4 5.8 Net Book Value Growth +33% Owned Aircraft OWNED FLEET +$1.5bn Net Book Value Growth From Q1 14 Owned Portfolio March 31, 2015 measured by net book value. Single-Aisle includes B737-800, A319ceo, A320ceo, A321ceo, E190. Twin-Aisle includes: A330-200/300, B787-8/
Slide 5: Trading Gains
Trading Gains Cumulative 2012 - Q1 2015 Trading Gain 106.8 14.6 Total Interest Breakage Costs 7.5 - Net Book Value 1,229.2 145.4 % Gain on Sale 8.7% 10.0% TRADING GAINS Q1 2015 $14.6 million gains on $145 million of aircraft sold Sources: Company data 2015 TRADING VOLUME Target $700 million $ millio
Slide 6: Active Liability Management
Active Liability Management TRANSACTION HIGHLIGHTS • $675 million portfolio facility • 1.65% margin • Incremental to Avolon’s undrawn debt of $920 million at March 31, 2015 • year term ; mix of blind slots and identified aircraft • Significant flexibility including an availability period of up to 15
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 8: Q1 Highlights
Q1 Highlights Signed early termination agreements for two aircraft, one of which redelivered in March 2015, second due to redeliver in May Unrealized mark to market on interest rate caps expense of $5.9 million Q1 delivery timing – 4 aircraft in February and 4 aircraft in March $14.6 million gains S
Slide 9: Q1 2015 Sustained Strong Growth
Q1 2015 Sustained Strong Growth 136 176 36 49 48 55 4,389 5,844 NET BOOK VALUE $ millions $ millions $ millions +33% REVENUE + 29% NET INCOME + 36% $ millions INTEREST EXPENSE + 14% Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q1 2014 Q1 2015
Slide 10: Driving Returns
Driving Returns Q1 2014 Q1 2015 Change Adjusted ROE ROE 13.8% 11.0% 16.6% 13.3% +20% +21% Diluted EPS ($) 0.46 0.61 +0.15 Adjusted EPS ($) 0.56 0.75 +0.19 Weighted Average Shares Outstanding Diluted 78,358,028 81,122,081 Issued Shares 81,681,131 82,428,607 Non-GAAP measure. See slide 18 Non-GAAP mea
Slide 11: Protected Against Rising Rates
Protected Against Rising Rates Libor Average Cap Strike Rate 3.05% 12.2% 21.4% • Lease and Loan Interest Rate Exposures are matched either by fixed rate financing or floating rate financing + interest rate cap • All future lease contracts and LOIs include rental formula pegged to reference swap rate
Slide 12: 2015 Financial Outlook Update
2015 Financial Outlook Update Non-GAAP measure. See slide 18 FY 2015 Adjusted ROE range of 14.7% - 15.0%; ROE of 12.8% - 13.1% Expected Net Trading Gains of $55m - $60m Previous commitments as of Dec 31, 2014 of $1.6bn delivering in 2015 Refinancing costs of $4m-$5m in Q2 offset by future interest s
Slide 13: Investor Day | May 26, 2015
Investor Day | May 26, 2015 LOCATION The American Irish Historical Society 991 Fifth Avenue (at 80 th ) New York, NY 10028 Register: IR@avolon.aero AGENDA 2.00pm Welcome & Presentations 3.15pm Break 5.00pm Presentations end 5.15pm Cocktails 6.00pm Entertainment 7.00pm Event concludes
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y\V(o) Ke). | (Ei Find out more at www.avolon.aero
Slide 15: Portfolio at March 2015
Portfolio at March 31 2015 AIRCRAFT TYPE OWNED MANAGED COMMITTED TOTAL A319 - - A320ceo A321ceo A320neo - - A330neo - - A330-200/300 - - B737-800 B737 MAX - - B787-8/9 - Boeing B777-300ER - - B777-200LRF - - E190 - -
Slide 16: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted net income is a measure of both liquidity and operating performance that is not defined by GAAP and should not be considered as an alternative to net income, income from operations, net cash provided by operating activities, or any other liquidity or pe
Slide 17: Reconciliation of Adjusted ROE
Reconciliation of Adjusted ROE Adjusted ROE is (Adjusted Net Income) / (Total shareholder’s equity) Q1 2014 Q1 2015 FY 2015 Guidance FY 2015 Guidance ROE 11.0% 13.3% 12.8% 13.1% Amortization of debt issuance costs 1.7% 1.5% 1.4% 1.4% Unrealized loss on derivatives 1.2% 1.6% - - Share based compensat
Slide 18: Reconciliation of Adjusted EPS
Reconciliation of Adjusted EPS Net Income ($ thousands) 36,422 49,354 Weighted Average Shares Outstanding Diluted (number of shares) 78,358,028 81,122,081 Adjusted Net Income ($ thousands) 45,922 61,704 Issued Shares (number of shares) 81,681,131 82,428,607 $ Q1 2014 Q1 2015 Diluted EPS 0.46 0.61 Am
Slide 19: y\V(o) Ke). |
y\V(o) Ke). | (Ei Find out more at www.avolon.aero