Slide 1: AerCap Holdings N.V. First Quarter 2011 Earnings Call
AerCap Holdings N.V. First Quarter 2011 Earnings Call May 5, 2011
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 respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements”. In some cases, forward-looking statements can be
Slide 3: First Quarter 2011 Highlights
First Quarter 2011 Highlights Net income was $75.3 million for first quarter 2011, exclusive of the impact relating to mark-to-market of interest rate caps and share- based compensation, an increase of 61% over first quarter 2010 Earnings per share for first quarter 2011 was $0.50, exclusive of
Slide 4: Net Income
Net Income ($ Million) 1Q 2010 1Q 2011 Total Net Income 34.4 72.1 Adjusted For: (Gain)/Loss from Mark- 11.6 1.5 to-Market on Interest Rate Caps * Adjusted for: Cost of Share-Based 0.7 1.7 Compensation* Net Income excluding above 46.7 75.3 adjustments * Adjustment reduced for tax impact as well as th
Slide 5: Earnings Per Share
Earnings Per Share 1Q 2010 1Q 2011 Earnings Per Share $0.40 $0.48 Adjusted for: mark-to-market on interest rate 0.15 0.02 caps and share based compensation Adjusted Earnings Per Share $0.55 $0.50 Average Shares Outstanding (Million)* 85.0 149.2 * The increase in average shares outstanding is due to
Slide 6: Total Revenue
Total Revenue ($ Million) 1Q 2010 1Q 2011 Basic Lease Rents 165.8 247.3 Maintenance/End-of-Lease Revenue 9.5 26.0 Sales Revenue 182.4 81.1 Management Fees and Interest Income 3.9 5.4 Other Revenue 1.9 2.5 Total Revenue 363.5 362.3 6
Slide 7: Net Spread (Margin) - First Quarter 2011
Net Spread (Margin) - First Quarter 2011 ($ Millions) 1Q 2010 1Q 2011 % Change Basic Lease Rents 165.8 247.3 49% Less: Interest Expense* (32.8) (61.2) 87% Net Spread (Margin) 133.0 186.1 40% Average Lease Assets 5,435 8,147 50% Annualized Margin (% Lease Assets) ** 9.78% 9.13% * Excludes non-cash ch
Slide 8: Sales
Sales ($ Million) 1Q 2010 1Q 2011 Aircraft Sales 140.8* 29.3** Engine Sales 7.8 7.2 Part Sales 33.8 44.6 Total Sales Revenue 182.4 81.1 Total Gain from Sales 26.3 11.3 * 1Q 2010 aircraft sales include the forward sale of 1 new A330, 2 forward positions, & 2 older B757s ** 1Q 2011 aircraft sales incl
Slide 9: Leasing Expenses and SG&A
Leasing Expenses and SG&A ($ Million) 1Q 2010 1Q 2011 % Change Operating lease in costs 3.2 3.1 (3%) Leasing expenses * 10.5 14.1 34% SG&A 29.9 28.8 (4%) Total Leasing Expenses and 43.6 46.0 6% SG&A * Details on following page 9
Slide 10: Leasing Expenses
Leasing Expenses ($ Million) 1Q 2010 1Q 2011 % Change Default Related Leasing 0.0 4.7 NA Expenses* Normal Transition Costs 2.3 2.4 4% Lessor Maintenance 1.2 1.4 17% Contributions AeroTurbine & Other Leasing 7.0 5.6 (20%) Costs Total Leasing Expenses 10.5 14.1 34% * Costs in Q1 2011 relate to airline
Slide 11: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Million) FY 2010 FY 2011 1Q 2011 (Actual) (Forecast) (Actual) Lost Basic Lease Rents (Net (3.4) ~(1.0) 3.0 of Security Deposits) Maintenance Rents Held 7.8 ~12.0 10.7 Default Related Leasing (7.8) ~(10.0) (4.7) Expenses Default Related Impairment (5.5) 0.0 0.0
Slide 12: Assets Impairments
Assets Impairments $7.7 million impairment charges incurred in Q1 2011 ― $7.1 million relating to 3 older A320s (~20 years of age) ― $0.6 million relating to an engine Units % of NBV Aircraft Impaired 3 0.3% Aircraft 15 Years of Age 48 6.2% or Older (incl. above) Total Aircraft Portfolio 272 12
Slide 13: Tax Rate
Tax Rate 1Q 2011 FY 2010 (& FY Est.) Tax Rate for Aircraft 8.9% Charge 8.6% Charge Tax Rate for Engine/Parts 34.2% Credit 37.6% Credit Blended Tax Rate* 8.6% Charge 8.0% Charge * The blended effective tax rate in any year is impacted by the source and amount of earnings among AerCap’s different tax
Slide 14: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 1Q 2010 1Q 2011 ($ Millions) 9,789 10,000 8,710 8,000 Total Assets 12% increase over Owned and on 6,000 1Q 2010 Balance Sheet 4,000 2,000 0 Number of Aircraft The increase of 12 aircraft is driven by the Waha Transaction (+16), Boeing Owned, On Order, Mana
Slide 15: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1Q 2011 Remaining Total 2011 2011 Aircraft Related 442 309 751 Engines/Airframes 26 37 63 Total Purchases 468 346 814 Number of Aircraft 7 5 12 Purchases (Units) 15
Slide 16: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio 1Q 2010 1Q 2011 Utilization Rate 98.9% 99.3% Portfolio Yield* 12.9% 13.4% Average Term (Months) – New Leases for New Aircraft 144 **144 – New Leases for Used Aircraft 62 *** 58 * Lease revenue divided by average book value of flight equipme
Slide 17: Cash
Cash ($ Millions) 1Q 2011 Cash and Cash Equivalents at March 31, 2011 322.5 Total Cash Balance at March 31, 2011 532.6 (Incl. Restricted Cash) Operating Cash Flow for 1Q 2011 85.2 17
Slide 18: Debt and Equity
Debt and Equity ($ Millions) 1Q 2010 1Q 2011 Total Debt at Quarter-End 6,083 6,731 Average Cost of Debt* 2.6% 3.6% Equity 1,860 2,293 Debt / Equity Ratio** **3.3 to 1 **2.9 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps and other small charges
Slide 19: 2011 Outlook – EPS Impact of Aircraft Sales / One-Offs
2011 Outlook – EPS Impact of Aircraft Sales / One-Offs 1Q 2011 Remaining 2011 Committed Aircraft Sales $0.00 $0.03 Other One-Offs $0.01 $0.05 EPS Impact $0.01 $0.08 19
Slide 20: Net Maintenance Contribution per Quarter
Net Maintenance Contribution per Quarter Avg. Last 3 Avg. Qtr. 2010 Q1 2011 Qtrs. 2011 (Actual) (Actual) (Forecast) Maintenance 20.6 26.0 ~19.0 Rents Leasing (17.0) (14.1) ~(24.0) Expenses Pre-tax Impact 3.6 11.9 ~(5.0) EPS Impact (after-tax) $0.02 $0.07 ($0.03) 20
Slide 21: 2011 Financial Outlook
2011 Financial Outlook AerCap expects to grow earnings based on the committed aircraft purchases despite the continued uncertainties of the global economic environment. Set forth below are the anticipated drivers for AerCap’s 2011 financial performance, which are subject to change, in light of the h
Slide 22: Appendix
Appendix * (AERCAP 22
Slide 23: Aircraft and Engine Transactions 1Q 2011
Aircraft and Engine Transactions 1Q 2011 9 letters-of-intent executed 11 aircraft and 13 engines delivered to lessees 7 aircraft and 7 engines purchased 4 aircraft and 4 engines sold from our owned and managed portfolios 23
Slide 24: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of March 31, 2011 Aircraft 74% narrow body – “Work under Horses” of industry Number Number of Purchase of Owned % Net Book Managed Aircraft Contract Total High share of liquid / remarket- Aircraft Value Aircraft on Order or LOI Ai