Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2022 Earnings Presentation
23 slides from Aercap's earnings presentation, May 17, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results AerCap Holdings N.V. May 17 , 2022 The picture can't be displayed. The picture can't be displayed.
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 Further information regarding these and other risks is included in AerCap's respect to future performance and events. These statements, estimates and annual report on
Slide 3: Key Highlights
Key Highlights Short-term uncertainty around Russia offset by favorable global supply/demand dynamics as borders reopen Secondary market for aircraft remains resilient with broad- based demand for aircraft sales GECAS acquisition driving higher cash flows and improved shareholder returns 3 The pictu
Slide 4: Demand Increasing as Recovery Progresses
Demand Increasing as Recovery Progresses Global demand is increasing across Europe, North America and Asia Pacific ex-China Total Daily Flights by Region Global passenger traffic 30,000 continues to increase with 24,376 ~64,000 daily flights from these 25,000 four regions alone 19,586 Recovery h
Slide 5: Supply Remains Constrained
Supply Remains Constrained OEM production and regulatory issues have resulted in far fewer aircraft deliveries in recent years Annual OEM Deliveries New aircraft supply remains muted 1,800 ~1,900 fewer aircraft delivered as delivery delays continue as a relative to 2018 run-rate result of ongoing
Slide 6: New Business Lines Performing Well
New Business Lines Performing Well Engines, Cargo and Helicopter businesses are contributing strongly World’s largest engine leasing company, with over Global leader with a fleet of >100 aircraft owned, World’s largest helicopter leasing company with 900 owned and managed engines serviced or committ
Slide 7: 1Q 2022 Net Income Walk
1Q 2022 Net Income Walk 1Q 2022 Adjusted Net Income Net loss of $2 billion, or $8.35 per share ($ million) (341) 17 (22) 387 158 540 Net Charges Related to Ukraine 0 Conflict included a non-cash write-down of flight equipment and lease-related assets, 2,729 Increase partially offset by the relea
Slide 8: 1Q 2022 Financial Drivers
1Q 2022 Financial Drivers Basic lease rents were $1,554 million, and were favorably impacted by stronger-than-expected cash collections, but negatively impacted by $57 million of lease premium amortization Maintenance revenues were $186 million, which was higher than normal due to lease terminat
Slide 9: Strong Liquidity Position
Strong Liquidity Position Next 12 months’ sources-to-uses coverage of 2.1x, with ~$17 billion sources of liquidity Sources vs. Uses (Next 12 Months) (as of March 31, 2022) Leverage ratio of 2.9x as of March 31, ($ billion) 18.0 2022 16.5 15.0 ~$5 ~$9 billion of excess cash coverage 13.5 Excess C
Slide 10: Financial Outlook
Treasury Update Financial Outlook
Slide 11: 2022 Outlook
2022 Outlook We expect to generate adjusted EPS of $6.50 to $7.00 in 2022 Maintenance Rights, Lease Premium Amortization & ($ billion, except EPS) Outlook1 Transaction-related Expenses Adjusted Outlook Revenue ~$6.5 ~$0.5 ~$6.9 Interest Expense ~(1.6) - ~(1.6) Depreciation ~(2.5) - ~(2.5) Leasing Ex
Slide 12: Balance Sheet Significantly De-Levers
Balance Sheet Significantly De-Levers We expect to return to our target leverage by the end of 2022 Adjusted Debt / Equity Ratio Assuming No Additional Capital Deployment 2.9x ~2.7x 2.7x Target Adj. Debt / Equity Ratio ~2.5x ~2.3x 1Q 2022 4Q 2022 4Q 2023 4Q 2024 2022 2023 2024 Assumed Sales ~$2 Bill
Slide 13: Excess Capital Generation
Excess Capital Generation We expect to generate >$2 billion of excess capital through 2024, excluding any potential insurance recoveries © AerCap | Confidential property of the company, not for disclosure or use without permission 13
Slide 14: Q&A
Q&A The picture can't be displayed. The picture can't be displayed.
Slide 15: Supplemental Information
Supplemental Information The picture can't be displayed. The picture can't be displayed.
Slide 16: Net Charges Related to Ukraine Conflict
Net Charges Related to Ukraine Conflict 1Q 2022 earnings were impacted by $2.4 billion in post-tax net charges as a result of the Ukraine Conflict In 1Q 2022, we recognized net charges related to the Ukraine 1Q 2022 Net Charges Related to Ukraine Conflict Conflict of $2.7 billion ($ billion) We
Slide 17: 1Q 2022 Adjusted Net Income and EPS
1Q 2022 Adjusted Net Income and EPS (Loss) Earnings ($ million, except per share amounts) Net (Loss) Income Per Share Net Loss / Loss Per Share (2,001) (8.35) 1Q 2022 Net Charges Related to Ukraine Conflict 2,729 11.35 Amortization of Maintenance Rights and Lease Premium Assets Recognized under
Slide 18: 2022 Outlook
2022 Outlook (Loss) Earnings ($ billion, except per share amounts) Net (Loss) Income Per Share GAAP Net Income and Earnings per Share (1.4) ~(5.90) 1Q 2022 Net Charges Related to Ukraine Conflict 2.7 Income Tax Benefit (0.3) Net Income / Earnings Per Share Excluding Impact of Ukraine Conflict 1.
Slide 19: High-Quality and Well-Diversified Portfolio
High-Quality and Well-Diversified Portfolio New technology aircraft comprise ~63% of aircraft fleet Number of % Net Number of Managed Number of Total Aircraft Type Owned Assets Book Value Assets On Order Assets Assets Airbus A220 Family 2 0% 1 9 12 Airbus A320 Family 481 11% 73 − 554 Airbus A320neo
Slide 20: Forward Orders and Purchase/Leasebacks
Forward Orders and Purchase/Leasebacks Aircraft Type 2022 2023 2024 2025 2026 Thereafter Total Airbus A220 Family 6 3 - - - - 9 Airbus A320neo Family 43 57 57 51 28 17 253 Airbus A330neo Family 1 5 6 - - - 12 Boeing 737 MAX 2 12 34 42 41 - 131 Boeing 787 1 5 6 4 2 3 21 Embraer E190 / 195-E2 5 - 11 1
Slide 21: Capital Structure
Capital Structure Adjusted Debt/Equity Calculation ($ million) Mar. 31, 2022 Dec. 31, 2021 Debt (including fair value adjustments) 48,913 50,205 Adjusted for: Unrestricted cash & cash equivalents (1,186) (1,729) 50% equity credit for long-term subordinated debt (1,125) (1,125) Adjusted Debt 46,6
Slide 22: Endnotes
Endnotes SLIDE 4: Demand Increasing as Recovery Progresses Flight Data: Cirium, as of May 15, 2022 SLIDE 5: Supply Remains Constrained Deliveries: Boeing, Airbus, as of 1Q 2022 SLIDE 7 : 1Q 2022 Net Income Walk Purchase accounting adjustments consist of the amortization of maintenance rights and lea
Slide 23: AerCap House, 65 St Stephens Green, Dublin
AerCap House T: +353 1 819 2010 65 St Stephens Green E: contact@aercap.com Dublin D02 YX20 W: aercap.com Ireland The picture can't be displayed. The picture can't be displayed.