Fly Leasing — 2018 Aircraft Leasing Conference
16 slides from Fly Leasing's conference presentation, Dec 4, 2018
Slide 1: 2018 Aircraft Leasing Conference
2018 Aircraft Leasing Conference
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “e
Slide 3: FLY at a Glance
Diversified Lessees48 Airlines in 27 Countries Significant Insider Ownership17% Owned by BBAM shareholders LONG-DATED Financing5.5 Years average life,scheduled amortization $2+ BILLIONpipeline50%Committed and Leased50%Options FLY at a Glance 3 112aircraftYoung Fleet7.1 Years average age LONG LEASES5
Slide 4: Strong Industry Fundamentals
Strong Industry Fundamentals 4 Robust Global Air Traffic Growth 7.0% 2018 Growth Forecast Healthy Demand for LEASED Aircraft Passenger Growth + Manufacturer Backlogs Continued Airline Profitability $34B Global Airline 2018 Profit Forecast POSITIVEFINANCIAL MARKETS Ample Capacity at Attractive Rates
Slide 5: BBAM – A Strong Partner for FLY
BBAM – A Strong Partner for FLY 5 30 years of experience150 professionals8 offices worldwide500+ aircraft managed200+ airline relationships $20 billion of financing sourced1,250+ aircraft remarketedPartners with Onex and GIC Buying/Selling Power AdvantageProvides FLY access to larger deals Purely an
Slide 6: Strategy Driving Higher EPS and ROE
Strategy Driving Higher EPS and ROE Selling Older and Under-Performing Aircraft Reducing SG&A Reducing Financing MARGINs Reinvesting in Newer, More Profitable Aircraft Repurchased Shares at a Discount to Book Value 6
Slide 7: Significant YOY Growth – 9 Months 2018
Significant YOY Growth – 9 Months 2018 7 GAAP 9M 2017 9M 2018 EPS ($0.15) $1.90 Adjusted Net Income Adjusted EPS Note: Dollars in millions, except EPS GAAP 9M 2017 9M 2018 Net Income (Loss) ($4.6) $54.7 Adjusted ROE 9M 2017 9M 2018 GAAP 9M 2017 9M 2018 ROE (1.1%) 12.3%
Slide 8: 2018 Portfolio Acquisition
33A320 aircraft 7CFM56Engines 2018 Portfolio Acquisition 8 PURCHASE-LEASEBACKS 4 6 11 21NEW A320 NEO familyaircraft COMPLETED ACQUISITIONS YTD Initial Phase Complete $2+ BNPipeline NEO OPTIONS 20NEW A320 NEO FAMILY aircraft Delivering2019-2025
Slide 9: FLY's Modern Fleet
Boeing 777-LRF Boeing 787 Boeing 757 Boeing 737 FLY’s Modern Fleet 9 7.1 YEARS AVG. AGE98% In-production 73% Narrowbody27% widebody Airbus a319 8 45 Airbus a320 42 Airbus a321 3 Airbus a330 3 Airbus a340 2 3 2 4 Note: Percentages represent weighted average net book value as of September 30, 2018. 3%
Slide 10: Well Diversified Lessees
Well Diversified Lessees 10 Lessee % Value 1 AirAsia 12% 2 9% 3 8% 4 7% 5 Thai AirAsia 4% 6 3% 7 Indonesia AirAsia 3% 8 3% 9 3% 10 3% Top 10 Lessees 56% 5.9 years average lease term Top 10 Lessees 48 Airlines in 27 Countries Note: Sums may not foot due to rounding. Percentages based on net book valu
Slide 11: Aircraft Sales
Aircraft Sales Three Aircraft Sold as of Q3$21 million economic gain19% premium to NBV 11 19%Premium to net book value of 3 Aircraft sold as of q3 Contracted to sell12 Aircraft $150M Of sales TargetedAnnually AirAsia Portfolio SalesTarget to sell $150 million annuallyReduces concentration and debt-t
Slide 12: FLY's Value Proposition
FLY’s Value Proposition 12 Sales at Premiums to Net Book Value Strong 9M 2018Earnings and ROE Long-Dated Financing5.5 year average life, scheduled amortization Trading at ~40% Discount(1) to Net Book Value $2+ Billion Acquisition Pipeline50% committed and leased; 50% options Attractive Industry Cond
Slide 13: Appendices
Appendices 13
Slide 14: Capital Structure & Liquidity Overview
Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs.Represents the ratio of total debt, less unrestricted cash and cash equivalents, divided by shareholders’ equity.In November 2018, FLY extended the f
Slide 15: Remarketing Overview
Remarketing Overview 15 All 2018 remarketing requirements have been completedNext remarketing requirement not until April 2019Market remains robust for remarketing aircraft Aircraft Remarketing Requirements (# of aircraft) 5.9 years average lease term % of NBV 0% 3.3% 7.6%
Slide 16: Adjusted Net Income & Adjusted ROE
Adjusted Net Income & Adjusted ROE Revised to conform to current period presentation.Percentages have been annualized. (In thousands) Q3 2018 Q3 2017(1) 9M 2018 9M 2017 ( 1 ) Net Income (Loss) $ 20,740 $ (12,504) $ 54,714 $ (4,572) Plus: Unrealized foreign exchange (gain) loss (25) 476 (481) 2,004 D