Aercap Holdings N.v. · NYSE:AER
Aercap — Merger or Acquisition (December 2013)
21 slides from Aercap's merger presentation, Dec 16, 2013
Slide 1: AerCap Presentation December 16, 2013
AerCap Holdings N.V. AerCap Presentation December 16, 2013
Slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor
Disclaimer Incl. Forward Looking Statements & Safe Harbor * This presentation may contain certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are intended to be covered by the safe harbor for “forward-looking statements
Slide 3: Non-GAAP Information
Non-GAAP Information * Discussions during this conference call will include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financia
Slide 4: Creating the industry leader
Creating the industry leader *
Slide 5: Transaction Summary
Transaction Summary Consideration AerCap will acquire 100% of ILFC, in exchange AIG will receive $3.0 billion in cash and 97,560,976 AER the cash portion of the consideration will be funded through a combination of new debt financing and cash of the combined company A committed acquisition facility
Slide 6: Strategic Rationale for ILFC Acquisition
Strategic Rationale for ILFC Acquisition AerCap's acquisition of ILFC will create the leading global franchise in the aircraft leasing industry The combination presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies, along with a divers
Slide 7: Key Highlights of Combined Operations
Key Highlights of Combined Operations * Prudent Financial Strategy Core of AerCap's success Proven track record of rapidly deleveraging Demonstrated access to capital markets Balanced financing across equity and debt More favorable tax environment Substantial cost saving opportunities Highly diversi
Slide 8: Combined Company
Combined Company *
Slide 9: Aircraft Portfolio is High Quality and Diversified
Aircraft Portfolio is High Quality and Diversified * Type and Number of Aircraft AerCap ILFC Combined A319s 24 123 147 A320s 90 162 252 A321s 8 86 94 A330s 34 90 124 B737NGs 63 230 293 B767s 3 48 51 B777s - 71 71 Others 9 121 130 Owned Aircraft 231 931 1,162 Managed Aircraft 96 71 167 Total 327 1,00
Slide 10: Attractive Order Book of Combined Company
Attractive Order Book of Combined Company * Combined order book contains the most in-demand, new technology aircraft: A350s, B787s, A320-NEOs Type 2013-2018 Thereafter B737 54 - B787 73 4 A320Ceo 2 - A320Neo 105 50 A321Ceo 15 - A330 3 - A350 29 - E190/195 5 45 Total Aircraft 286 99 PF Combined Lease
Slide 11: Pro Forma Financials
Pro Forma Financials *
Slide 12: Snapshot of Combined Company
Snapshot of Combined Company * Creating the Industry Leader Existing fleet of ~1,300 aircraft Order-book of 385 aircraft Total airline customers of over 200 Aircraft assets of ~$35 billion Total assets of ~$41 billion Total debt of ~$31 billion Total equity of ~$5-6 billion Annual revenue of ~$5 bil
Slide 13: Opening Day Balance Sheet
Opening Day Balance Sheet ($ Billions) Total Assets ~$41 Aircraft Assets ~$35 Equity ~$5-6 Debt/Equity Ratio ~5.5x * Pro Forma Assets and Capital Structure Both the planned reduction in leverage and future profits are underpinned by the fact that ~85% of lease revenues are contracted for the next 3
Slide 14: Pro Forma Earnings
($ Billions, Except EPS) Run-rate Earnings Driven by Write Down/Fair Value ~$0.3 Run-rate Earnings Driven by Cost/Tax Synergies ~$0.3 Run-rate Earnings Per Share ~$4.00+ Run-rate Return on Equity ~15% Pro Forma Earnings
Slide 15: Capital Management
Capital Management We expect the Combined Company to have deep access to all funding markets Combined, AerCap and ILFC have raised over $39 billion of financing in the last several years – many times the expected financing need of the Combined Company over the next few years The Combined Company has
Slide 16: Pro Forma Cash Flows, Liquidity, Debt Structure
($ Billions) Annual Operating Cash Flows (Excl. Sales) ~$3 Revolving Lines of Credit as of Closing* ~$4 Unrestricted Cash as of Closing ~$1 Secured/Unsecured Debt Mix ~40% / ~60% * Pro Forma Cash Flows, Liquidity, Debt Structure Liquidity sources for next 12 months of ~$8 billion (as of closing) * R
Slide 17: Operating Cash Flow and Contractual Debt Obligations
Operating Cash Flow and Contractual Debt Obligations * ($ Billions) Pro Forma Annual Operating Cash Flow ~$3 Cash Flow from Aircraft Sales ~$1 Adjusted Operating Cash Flow ~$4 Contractual Debt Repayment ~($3.5) Operating Cash Flow Net of Debt* ~$0.5 Assumes no debt raised to finance ongoing debt mat
Slide 18: Next Steps, Timeline, & Summary
Next Steps, Timeline, & Summary *
Slide 19: Next Steps and Transaction Timeline
Next Steps and Transaction Timeline * Shareholder Vote Required Approvals Closing AerCap will convene a meeting of its shareholders for the purpose of obtaining the required vote. Expected within 60 days Waha Capital, AerCap’s largest shareholder with a current stake of 26%, has agreed to vote in fa
Slide 20: Creates the Industry Leader
* Creates the Industry Leader Highly Attractive (in-the-money) Order Book Reduction in Tax Expense from Transfer to Existing AerCap Locations Rapidly Improving Operating Metrics Highly Scalable Platform Provides Operating Efficiencies Best in Class Management Team Industry leading franchise with sig
Slide 21: ‘ property othe company, not for dsosureor use without permision 21 ‘www.aercap:com
‘Confidential property othe company, not for dsosureor use without permision 21 ‘www.aercap:com
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