Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2020 Earnings Presentation
24 slides from Aercap's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Financial Results
First Quarter 2020 Financial Results AerCap Holdings N.V. May 5, 2020 D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 2: Disclaimer Including Forward Looking Statements & Safe Harbor
Disclaimer Including Forward Looking Statements & Safe Harbor This presentation contains certain statements, estimates and forecasts with Except as required by applicable law, we do not undertake any obligation to, respect to future performance and events. These statements, estimates and and will no
Slide 3: Leadership, Strength and Resilience
Leadership, Strength and Resilience Unrivaled High Quality Attractive Strong Operating Customer Aircraft Balance Sheet Platform Base Portfolio and Liquidity ~2,000 aircraft transactions ~70% flag carriers, U.S. and 59% new technology aircraft ~$11 billion sources of over the past 5 years Chi
Slide 4: Actions We Are Taking to Address Covid-19
Actions We Are Taking to Address Covid-19 Working Working Enhancing with Our with the Our Customers OEMs Liquidity Generally 2-3 month rent Active discussions with Increased sources-to-uses deferrals repaid during OEMs and airlines to manage coverage from 1.5x to 2.0x remainder of year skyline
Slide 5: Significant Reduction in Capital Expenditures
Significant Reduction in Capital Expenditures 2020 cash capex reduced by ~$2.3 billion 2020 Cash Capital Expenditures and Units ~$2.3 billion of cash capex and 26 new Units aircraft deliveries moved out of 2020 5.0 100 4.5 Capex for 2020 reduced by over 55%, 4.0 80 ~$1.2 billion remaining 3.5
Slide 6: Global Passenger Fleet vs. AerCap Fleet
Global Passenger Fleet vs. AerCap Fleet Global In-Service Passenger Fleet AerCap Fleet Aircraft Units Aircraft Seats Net Book Value Number % Number % % Old Technology 1,653 8% 319,174 8% −% Current Technology 16,752 80% 3,227,303 78% 41% New Technology 2,584 12% 598,722 14% 59% Total Aircraft 20,989
Slide 7: Net Income and Earnings Per Share
Net Income and Earnings Per Share 1Q 2020 1Q 2019 Net Income ($ million) 276.8 234.2 Diluted Earnings Per Share ($) 2.14 1.68 Key Highlights • Net income increased 18%, primarily driven by higher maintenance revenue as well as higher net gain on sale of assets • Diluted earnings per share increased
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 1Q 2020 1Q 2019 Basic Lease Rents 1,030.8 1,075.3 Maintenance Rents and Other Receipts 134.3 86.8 Net Gain on Sale of Assets 58.4 21.5 Other Income 14.7 21.4 Total Revenues and Other Income 1,238.2 1,205.0 • Basic lease rents decreased primarily due to downtime
Slide 9: Net Interest Margin and Net Spread
Net Interest Margin and Net Spread 1Q 2020 1Q 2019 Net Interest Margin ($ million) 724.7 757.0 Average Lease Assets ($ million) 37,671 37,266 Average Cost of Debt 4.1% 4.2% (Includes debt issuance costs, upfront fees and other impacts of ~0.3%-0.4%) Annualized Net Spread 7.7% 8.1% Annualized Net Spr
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases Net Gain on Sale of Assets Sales Volume and Margin Over the Last 8 Quarters ($ million) 800 40% Sales Volume ($ million) 1Q 2020 1Q 2019 Sales Margin 700 35% Net Gain on Sale of Assets 58.4 21.5 600 30% 28% 1Q 2020 Aircraft Disposal Activity of $265 million 500 25% •
Slide 11: Other Expenses
Other Expenses ($ million) 1Q 2020 1Q 2019 Selling, General & Administrative Expenses 64.6 66.9 Maintenance Rights Expense 16.2 21.4 Other Leasing Costs 87.1 70.3 Asset Impairment 13.9 5.0 • Maintenance rights expense decreased as a result of lower maintenance activity during the period and the lowe
Slide 12: Strong Liquidity Position
Strong Liquidity Position Next 12 months sources-to-uses coverage of 2.0x, with ~$11 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of Mar 31, 2020) $5.5 billion of excess cash coverage ($ billion) 10.5 2.0x next 12 months sources to uses $2.7 coverage, an increase from 1.5x
Slide 13: Key Points
Key Points ~$11bn Sources of liquidity 2.0x Sources-to-uses coverage, $5.5 billion excess cash coverage 2.5x Leverage ratio, lowest since 2014 19.6% Secured debt-to-total assets ratio, all-time low >$28bn Unencumbered assets ~70% Revenue from flag carriers, majors and higher-rated airlines 100% Plac
Slide 14: Q&A
Q&A D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 15: Supplemental Information
Supplemental Information D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 16: Book Value Per Share
Book Value Per Share AerCap has grown book value per share by 14% year over year and by ~14% per year over the last 5 years Book Value Per Share Book Value Per Share Growth (millions, except per share data) Mar. 31, 2020 $80 $74 $75 $72 Total Shareholders’ Equity $9,383 $70 $65 $63 Ordinary Shares O
Slide 17: Capital Structure
Capital Structure Adjusted Debt/Equity Calculation ($ million) Mar. 31, 2020 Dec. 31, 2019 Debt (including fair value adjustments) 32,761 29,486 Adjusted for: • Unrestricted cash & cash equivalents (4,694) (1,121) • 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 26,9
Slide 18: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise ~59% of our owned fleet Number of % Net Number of Number of Total Aircraft Type Owned Aircraft Book Value Managed Aircraft on Order Aircraft Aircraft Airbus A320 Family 281 13% 41 − 322 Airbus A320neo Family 143 19% 1 182 3
Slide 19: Attractive Aircraft Portfolio
Attractive Aircraft Portfolio ~59% of AerCap’s fleet consists of in-demand new technology aircraft AerCap’s Fleet Mix % of Fleet Current Technology 40% New Technology 35% 30% 787s 25% 20% 737NGs A320neo Family 15% A320 Family 10% A350s A330s 5% 777s E2s 737 MAXs 0% - 3 6 9 12 Average Age (Years) 2.5
Slide 20: Global Passenger In-Service Fleet by Technology
Global Passenger In-Service Fleet by Technology Split of Technology Type New Technology Current Technology Old Technology Units Seats Units Seats Units Seats Airbus 1,640 339,665 Airbus 8,519 1,667,018 Airbus 36 8,992 A220-100 (CS100) 37 4,177 A318 24 2,902 A300’s 18 5,099 A220-300 (CS300) 62 8,771
Slide 21: International Labor Day Holiday, May 1, 2020
International Labor Day Holiday, May 1, 2020 Beijing, Shanghai, Guangzhou, Chengdu, Xiamen and Shenzhen international airports © AerCap | Confidential property of the company, not for disclosure or use without permission 21
Slide 22: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2020 2021 2022 2023 2024 Thereafter Total Airbus A320neo Family 22 44 34 30 27 25 182 Boeing 737 MAX 3 15 16 17 18 26 95 Boeing 787 2 7 1 9 6 - 25 Embraer E190 / 195-E2 5 16 14 5 - - 40 Total Aircraft 32 82 65 61 51 51 342 • We expect this delivery
Slide 23: Endnotes
Endnotes SLIDE 5: Significant Reduction in Capital Expenditures Capex includes cash payments for the next 12 months’ aircraft deliveries and pre-delivery payments. SLIDE 9: Net Interest Margin and Net Spread Net interest margin is calculated as basic lease rents less interest expense, excluding the
Slide 24: AerCap House, Dublin
AerCap House T: +353 1 819 2010 65 St. Stephen’s Green E: contact@aercap.com Dublin D02 YX20 W: aercap.com Ireland D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e