Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2019 Earnings Presentation
20 slides from Aercap's earnings presentation, Feb 13, 2020
Slide 1: Fourth Quarter 2019 Financial Results
Fourth Quarter 2019 Financial Results AerCap Holdings N.V. February 13, 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 as required by applicable law, we do not undertake any obligation to, and will respect to future performance and events. These statements, estimates and not, upda
Slide 3: Well-Positioned for the Future
Well-Positioned for the Future ~$40 ~97% 3Q 58% BILLION CONTRACTED 2027 CONTRACTED FUTURE LEASE RENTS AVERAGE NEW TECHNOLOGY LEASE RENTS THROUGH 2022 LEASE END DATE AIRCRAFT AS % OF CURRENT FLEET NBV © AerCap | Confidential property of the company, not for disclosure or use without permission 3
Slide 4: Attractive Aircraft Portfolio
Attractive Aircraft Portfolio 58% of AerCap’s fleet consists of in-demand new technology aircraft AerCap’s Fleet Mix % of Fleet Current Technology 40% New Technology 35% 30% 787s 25% 20% 737NGs A320neo Family 15% A320 Family 10% A350s A330s 5% 777s E2s 737 MAXs 0% - 3 6 9 12 Average Age (Years) 2.3
Slide 5: 4Q 2019 Financial Results and Highlights
4Q 2019 Financial Results and Highlights Financial Results Highlights • 44% increase in diluted EPS 4Q 2019 over 4Q 2018 NET INCOME • 99.8% fleet utilization in 4Q 2019 (99.6% for FY 2019) ($ million) 4Q 2019 FY 2019 • 2.6 to 1 adjusted debt/equity ratio Net Income 309.8 1,145.7 • 22% secured debt t
Slide 6: Net Income and Earnings Per Share
Net Income and Earnings Per Share 4Q 2019 4Q 2018 FY 2019 FY 2018 Net Income ($ million) 309.8 232.6 1,145.7 1,015.6 Diluted Earnings Per Share ($) 2.34 1.62 8.43 6.83 Key Highlights 4Q Results • Net income increased 33%, primarily driven by higher maintenance revenue as well as lower leasing expens
Slide 7: Revenues and Other Income
Revenues and Other Income ($ million) 4Q 2019 4Q 2018 FY 2019 FY 2018 Basic Lease Rents 1,062.3 1,051.0 4,281.3 4,145.6 Maintenance Rents and Other Receipts 132.5 102.3 401.0 391.5 Net Gain on Sale of Assets 48.6 40.8 188.8 201.3 Other Income 13.5 25.5 66.2 61.6 Total Revenues and Other Income 1,257
Slide 8: Net Interest Margin and Net Spread
Net Interest Margin and Net Spread 4Q 2019 4Q 2018 FY 2019 FY 2018 Net Interest Margin ($ million) 746.8 749.1 3,016.0 2,966.3 Average Lease Assets ($ million) 37,789 36,364 37,590 35,369 Average Cost of Debt Includes debt issuance costs, upfront fees 4.2% 4.1% 4.2% 4.1% and other impacts of ~0.4% A
Slide 9: 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 Sales Volume 40% ($ million) 4Q 2019 4Q 2018 Unlevered Sales Margin 700 35% Net Gain on Sale of Assets 48.6 40.8 600 30% 4Q 2019 Aircraft Disposal Activity of $729 million 500
Slide 10: Effective Redeployment of Capital
Effective Redeployment of Capital Taking advantage of the differential between public and private markets for aircraft to create value 2019 Aircraft Sales and Share Repurchases 150% • During 2019, we sold 88 aircraft ~135% at an average gain on sale of ~10%, which represents a ~35% 125% premium to b
Slide 11: Other Expenses
Other Expenses ($ million) 4Q 2019 4Q 2018 FY 2019 FY 2018 Selling, General & Administrative Expenses 71.3 70.8 267.5 305.2 Maintenance Rights Expense 25.2 35.6 76.6 157.7 Other Leasing Costs 61.7 90.3 211.4 288.8 Asset Impairment 16.1 15.3 70.1 44.2 • Selling, general and administrative expenses fo
Slide 12: Liquidity Position
Liquidity Position We continue to maintain strong liquidity, with $8.2 billion available as of December 31, 2019 Sources vs. Uses (Next 12 Months) ($ billion as of Dec 31, 2019) Liquidity Levels Over the Last 8 Quarters Sources (for 12 months to December 31, 2020) ($ billion) 12.0 11.7 3.5x 11.0 11.
Slide 13: Book Value Per Share
Book Value Per Share AerCap has grown book value per share by 15% 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 Dec. 31, Dec. 31, $75 $72 data) 2019 2018 $70 Total Shareholders’ Equity $9,315 $8,828 $65 $63 $60
Slide 14: Q&A
Q&A D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 15: Supplemental Information
Supplemental Information D u b l i n | S h a n n o n | L o s A n g e l e s | S i n g a p o r e | A m s t e r d a m | S h a n g h a i | A b u D h a b i | S e a t t l e | T o u l o u s e
Slide 16: Capital Structure
Capital Structure Adjusted Debt/Equity Calculation ($ million) Dec. 31, 2019 Dec. 31, 2018 Debt (including fair value adjustments) 29,486 29,508 Adjusted for: • Unrestricted cash & cash equivalents (1,121) (1,204) • 50% equity credit for long-term subordinated debt (1,125) (750) Adjusted Debt 27,240
Slide 17: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise 58% 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 286 14 39 − 325 Airbus A320neo Family 138 18 − 137 275
Slide 18: Forward Order and Purchase/Leasebacks
Forward Order and Purchase/Leasebacks Aircraft Type 2020 2021 2022 2023 2024 Total Airbus A320neo Family 37 43 32 25 − 137 Boeing 737 MAX 4 37 30 24 − 95 Boeing 787 3 7 4 9 3 26 Embraer E190 / 195-E2 21 16 4 − − 41 Total Aircraft 65 103 70 58 3 299 As of December 31, 2019 © 2019 AerCap | Confidentia
Slide 19: Endnotes
Endnotes SLIDE 8: Net Interest Margin and Net Spread Net interest margin is calculated as basic lease rents less interest expense, excluding the non-cash charges related to the mark-to-market of interest rate caps. Average lease assets includes flight equipment held for operating leases, flight equi
Slide 20: 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