Aercap Holdings N.v. · NYSE:AER
Aercap — Baird Global Industrial Conference 2023
21 slides from Aercap's conference presentation, November 2023
Slide 1: Baird Conference Presentation
BAIRD CONFERENCE PRESENTATION AERCAP HOLDINGS N.V. NOVEMBER 2023
Slide 2: Forward Looking Statements and Non-GAAP Financial Information
FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATION This presentation contains certain statements, estimates and forecasts with respect to future As a result, we cannot assure you that the forward-looking statements included in this presentation performance and events. These statements, es
Slide 3: Today's Presenter
TODAY’S PRESENTER Aengus Kelly Chief Executive Officer © AerCap - Confidential property of the company, not for disclosure or use without permission 3
Slide 4: AerCap Highlights
AERCAP HIGHLIGHTS Track record of best-in-class execution and clear runway to capitalize on favourable industry dynamics The Global Leader in Aviation Leasing; Built on Organic Growth and Attractive M&A Information Edge Driven by Leading Number of Aircraft Transactions Long Term Supply Chain Challen
Slide 5: Legacy of Leadership, Growth and Consolidation
LEGACY OF LEADERSHIP, GROWTH AND CONSOLIDATION With 50 years of experience dating back to the founding of the aircraft leasing industry, AerCap has grown its business organically and through large-scale, attractive M&A to become the global leader in aviation leasing GPA SELLS GECAS CREATES 1ST GECAS
Slide 6: Organic Growth Through Large-Scale Direct Orders
ORGANIC GROWTH THROUGH LARGE-SCALE DIRECT ORDERS Over the last 28 years AerCap has taken delivery of more aircraft than any other airline or lessor from the OEMS New Aircraft Deliveries from OEMs 1995 – 3Q 2023 YTD 3,000 2,656 2,500 2,000 1,500 1,083 1,000 916 868 811 669 615 600 531 528 500 - Ameri
Slide 7: AerCap's History of Value Creation Through M&A
AERCAP’S HISTORY OF VALUE CREATION THROUGH M&A AerCap has experience adding value with our dynamic approach to capital allocation and history of M&A ILFC ACQUISITION GECAS ACQUISITION Acquired ILFC from AIG at a Acquired GECAS from GE M&A discount to book value, issuing at a discount to book value,
Slide 8: Diversification of Business Lines a Key Differentiator
DIVERSIFICATION OF BUSINESS LINES A KEY DIFFERENTIATOR AerCap’s business lines provide diversification, and further support our breadth and depth of industry data World’s largest engine lessor, with Global fleet of >100 aircraft Provides long-term helicopter Premier global distributor of ~1,000 owne
Slide 9: Supply Chain Disruptions Lead to Higher Lease Rates
SUPPLY CHAIN DISRUPTIONS LEAD TO HIGHER LEASE RATES Commercial aircraft deliveries remain significantly behind OEM expectations, as airframers struggle to ramp up capacity and engine OEMs divert more engines to address reliability issues OEM Deliveries Remain Below Expectations P&W Powered A320neo F
Slide 10: Recycling Capital Generates Significant Value
RECYCLING CAPITAL GENERATES SIGNIFICANT VALUE Taking advantage of the differential between public and private markets for aircraft to create value for shareholders Value Created Through Asset Sales and Share Repurchases Example of Capital Recycling $ millions 2.0x ~1.84x Book Value of Aircraft Sold:
Slide 11: Significant Capital Returned to Shareholders
SIGNIFICANT CAPITAL RETURNED TO SHAREHOLDERS Strong YTD performance across the business has enabled the return of significant capital to shareholders and the restoration of steady book value per share growth following the disruption of Covid-19 and the Ukraine Conflict Share Repurchases as a % of Or
Slide 12: GE Ownership Significantly Reduced
GE OWNERSHIP SIGNIFICANTLY REDUCED The overhang from potential GE share sales has allowed AerCap to deploy capital effectively through 2023 Change in GE Ownership of AerCap GE Ownership of AER Following the completion of two successful secondary offerings in 120 GE Shareholding in AER 45.3% 2023, GE
Slide 13: Raising Full Year 2023 Guidance
RAISING FULL YEAR 2023 GUIDANCE Full year 2023 adjusted EPS guidance increased to ~$9.50, excluding 4Q 2023 gains on sale 2023 Adjusted Earnings Per Share Guidance Key drivers of outperformance include: $10.00 ~$9.50 $9.00 $8.50 – $9.00 $1.47 Higher lease revenue primarily $0.98 9M’23 gains due to s
Slide 14: AerCap Highlights
AERCAP HIGHLIGHTS Track record of best-in-class execution and clear runway to capitalize on favourable industry dynamics The Global Leader in Aviation Leasing; Built on Organic Growth and Attractive M&A Information Edge Driven by Leading Number of Aircraft Transactions Long Term Supply Chain Challen
Slide 15: Supplemental Information
SUPPLEMENTAL INFORMATION © AerCap
Slide 16: Book Value Per Share
BOOK VALUE PER SHARE Book value per share of $78.28 as of September 30, 2023 (millions, except per share data) Sept. 30, 2023 Total Shareholders’ Equity $16,294 Ordinary Shares Outstanding 212.4 Unvested Restricted Stock (4.2) Ordinary Shares Outstanding (excl. Unvested Restricted Stock) 208.1 Book
Slide 17: Full Year 2023 Adjusted EPS Guidance
FULL YEAR 2023 ADJUSTED EPS GUIDANCE ($ billion, except per share amounts) Net Income / EPS Net Income $2.3 Net Recoveries Related to Ukraine Conflict (0.7) Amortization of Maintenance Rights and Lease Premium Assets Recognized under Purchase 0.5 Accounting Income Tax Expense 0.0 Adjusted Net Income
Slide 18: High-Quality & Well-Diversified Portfolio
HIGH-QUALITY & WELL-DIVERSIFIED PORTFOLIO New technology aircraft comprise ~69% of aircraft fleet AIRCRAFT TYPE NUMBER OF ASSETS OWNED % NET BOOK VALUE NUMBER OF ASSETS MANAGED NUMBER OF ASSETS ON ORDER TOTAL ASSETS Airbus A220 Family 8 1% 3 14 25 Airbus A320 Family 434 9% 64 - 498 Airbus A320neo Fa
Slide 19: Forward Orders and Purchase/Leasebacks
FORWARD ORDERS AND PURCHASE/LEASEBACKS AIRCRAFT TYPE 2023 2024 2025 2026 2027 THEREAFTER TOTAL Airbus A220 Family 4 10 - - - - 14 Airbus A320neo Family 12 42 45 53 22 5 179 Airbus A330neo Family - 8 - - - - 8 Boeing 737 MAX 5 20 34 65 - - 124 Boeing 787 3 4 10 5 - - 22 Embraer E190 / 195-E2 - 10 18
Slide 20: Endnotes
ENDNOTES SLIDE 6: ORGANIC GROWTH THROUGH LARGE-SCALE DIRECT ORDERS Cirium Fleets Analyzer: Airbus, Boeing and McDonnell Douglas deliveries by aircraft manager (owner) between January 1, 1995 and September 30, 2023. New aircraft deliveries only. AerCap includes ILFC and GECAS. American includes US Ai
Slide 21: Never Stand Still
NEVER STAND STILL PROPERTY OF AERCAP ©2023
AerCap Holdings — Baird Global Industrial Conference 2023 on 6ix