Aercap Holdings N.v. · NYSE:AER
Aercap — Investor Day (2024)
25 slides from Aercap's investor day presentation, 2024
Slide 1: Commercial – Peter Anderson, Chief Commercial Officer
COMMERCIAL PETER ANDERSON CHIEF COMMERCIAL OFFICER
Slide 2: Key Messages
KEY MESSAGES Aircraft Leasing is Driving Global Fleet Growth Platform Synergies Generate Competitive Advantages Portfolio Strategy Focused on In-Demand, New Technology Assets Impact of Higher Rents Underway, Beginning in 2024 © AerCap 28
Slide 3: Aviation Is a Resilient Industry
AVIATION IS A RESILIENT INDUSTRY Global passenger traffic is expected to continue its strong growth trajectory despite recent events Airbus GMF World Passenger Traffic Forecast (Baseline Scenario) 9/11 SARS Oil, Financial & Euro Crises, Brexit / Covid-19 Ukraine Russia & Ebola Trade Wars Conflict GM
Slide 4: Aircraft Leasing Market Continues to Grow
AIRCRAFT LEASING MARKET CONTINUES TO GROW Over the past 5 years, lessors accounted for 75% of global fleet growth Proportion of Global Fleet on Operating Leases 23,630 21,383 +2,247 16,963 14,356 75% 12,446 11,520 of 2018- 9,826 +1,694 2023 growth is 5,245 6,430 ~50% lessor LEASED 3,754 supply 30% 2
Slide 5: Evolution of AerCap – 2000
EVOLUTION OF AERCAP – 2000 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 31
Slide 6: Evolution of AerCap – 2013
EVOLUTION OF AERCAP – 2013 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 32
Slide 7: Evolution of AerCap – 2014
EVOLUTION OF AERCAP – 2014 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 33
Slide 8: Evolution of AerCap – 2020
EVOLUTION OF AERCAP – 2020 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 34
Slide 9: Evolution of AerCap – 2021
EVOLUTION OF AERCAP – 2021 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 35
Slide 10: Evolution of AerCap – 2024
EVOLUTION OF AERCAP – 2024 Lessor Fleet by Units See Supplemental Information – Endnotes. © AerCap 36
Slide 11: The AerCap Advantage
THE AERCAP ADVANTAGE AerCap’s platform is the competitive advantage to achieve superior returns throughout the life-cycle of assets 1st Financing Strong Balance Sheet 7th 2nd Trading & End-of-Life Purchasing Active Trader / Buy at the AerCap Materials Right Time 6th ADVANTAGE 3rd Transitions Specifi
Slide 12: The AerCap Advantage
THE AERCAP ADVANTAGE AerCap’s platform is a key competitive advantage PASSENGER AIRCRAFT CARGO AIRCRAFT © AerCap 38
Slide 13: The AerCap Advantage
THE AERCAP ADVANTAGE AerCap’s platform is a key competitive advantage PASSENGER AIRCRAFT CARGO AIRCRAFT © AerCap 39
Slide 14: The AerCap Advantage
THE AERCAP ADVANTAGE AerCap’s platform is a key competitive advantage PASSENGER AIRCRAFT CARGO AIRCRAFT © AerCap 40
Slide 15: The AerCap Advantage
THE AERCAP ADVANTAGE AerCap’s platform is a key competitive advantage PASSENGER AIRCRAFT CARGO AIRCRAFT © AerCap 41
Slide 16: AerCap Portfolio Transformation – 2014
AERCAP PORTFOLIO TRANSFORMATION – 2014 AerCap’s Transition to New Technology % of Fleet 40% Current Technology 35% New Technology A320 Family 30% 737NGs 25% 20% A330s 15% 777s 10% 787s 5% - - 4 8 12 16 Average Age (Years) See Supplemental Information – Endnotes. © AerCap 42
Slide 17: AerCap Portfolio Transformation – 2020
AERCAP PORTFOLIO TRANSFORMATION – 2020 AerCap’s Transition to New Technology % of Fleet 40% Pre-GECAS Acquisition Current Technology 35% New Technology 30% 787s 25% A320neo Family 20% 737NGs 15% A320 Family 10% A350s 5% A330s 777s E-2s 737 MAXs - - 4 8 12 16 Average Age (Years) See Supplemental Info
Slide 18: AerCap Portfolio Transformation – 2021
AERCAP PORTFOLIO TRANSFORMATION – 2021 AerCap’s Transition to New Technology % of Fleet 40% Post-GECAS Acquisition Current Technology 35% New Technology A320neo Family 30% 25% 20% 787s 737NGs A320 Family 15% 10% A350s 777s 5% 737 MAXs A330s E-2s - - 4 8 12 16 Average Age (Years) See Supplemental Inf
Slide 19: AerCap Portfolio Transformation – 2024
AERCAP PORTFOLIO TRANSFORMATION – 2024 AerCap’s Transition to New Technology % of Fleet 40% Current Technology 35% New Technology A320neo Family 30% 25% 20% 787s 15% A320 Family 10% 737NGs A350s 737 MAXs 5% A330neo 777s E-2s A330s A220s - - 4 8 12 16 Average Age (Years) See Supplemental Information
Slide 20: Fleet Transformation
FLEET TRANSFORMATION We expect that new technology aircraft will comprise ~75% of our fleet by the end of 2024 Continued Fleet Transition into New Technology Aircraft Previous Technology Aircraft GECAS Acquisition 100% 90% CURRENT TECHNOLOGY 80% WIDEBODY AIRCRAFT 70% 60% 50% CURRENT TECHNOLOGY 40% N
Slide 21: Investment in Liquid New Technology Assets
INVESTMENT IN LIQUID NEW TECHNOLOGY ASSETS AerCap’s order book comprises the most in-demand asset types Global Narrowbody Passenger Fleet Global Widebody Passenger Fleet (Units) Operators (Units) Operators A321neo 14% 100+ B787-9 18% 50+ B737-Max8 5% 100+ A350-900 8% 50+ A320neo 20% 100+ B787-8 3% 5
Slide 22: Lease Rates and Demand Increasing
LEASE RATES AND DEMAND INCREASING Driven by strong demand, forward order aircraft are being placed at higher rates A321neo Placements 2019 & 2023 Lease Rent ($) ~20% Increase Over ~4 years 2020 2021 2022 2023 2024 2025 2026 2027 Delivery Year Deals signed in 2019 Deals signed from 2023 See Supplemen
Slide 23: Lease Rates and Demand Increasing
LEASE RATES AND DEMAND INCREASING Driven by strong demand, forward order aircraft are being placed at higher rates B787-9 Placements 2019 & 2023 Lease Rent ($) ~10% Increase Over ~2 years 2023 2024 2025 2026 2027 Delivery Year Deals signed in 2019 Deals signed from 2023 See Supplemental Information
Slide 24: Used Aircraft Placed at Better and Longer Terms
USED AIRCRAFT PLACED AT BETTER AND LONGER TERMS Deals signed since 4Q 2023 were placed at an average term of seven years, versus five years in 2019 Lease Rent and Lease Terms on B737-800 Placements Lease Rent ($) Deals signed from 4Q 2023 Deals signed in 2019 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Slide 25: Strong Rental Recovery Underway
STRONG RENTAL RECOVERY UNDERWAY Deals signed during stronger market conditions are yet to be fully reflected in results Re-leases and New Aircraft Deliveries (Units) 120 Deal Contract Year Strong Market (2023 - present) 100 Recovering Market (2022) Weak Market (2020 - 21) 35 80 47 60 39 40 55 58 41