Slide 1: AerCap Holdings N.V. Second Quarter 2009 Earnings Call
AerCap Holdings N.V. Second Quarter 2009 Earnings Call August 6, 2009
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: Second Quarter 2009 Financial Highlights
Second Quarter 2009 Financial Highlights Net income was $39.1 million for second quarter 2009, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for second quarter 2009 were $0.46 on the same basis Basic rents in seco
Slide 4: Aircraft and Engine Transactions During Second Quarter 2009
Aircraft and Engine Transactions During Second Quarter 2009 30 new aircraft lease agreements & letters-of-intent executed 9 aircraft and 19 engines delivered to lessees 11 aircraft and 7 engines purchased 3 aircraft and 6 engines sold from our owned portfolio 4
Slide 5: Forward Order Aircraft
Forward Order Aircraft Options Options (1) Additional 5 5 Purchases (2) Available 4 20 Available LOI 57 15 Sold Sold 9 9 LOI 4 Lease Lease Sold Agreements Agreements 7 51 44 Lease Agreements Delivered 25 29 Delivered Delivered 15 2 As of As of As of December 31, 2007 December 31, 2008 July 31, 2009
Slide 6: Net Income
Net Income ($ Million) 2Q 2008 2Q 2009 Total Net Income 68.6* 56.6** Mark-to-market on interest rate caps (11.9) (18.3) Share-based compensation 1.5 0.8 Net Income excluding above 58.2* 39.1** charges * Q2 2008 includes ~$32.3 million gain from sales (net of tax) ** Q2 2009 includes ~$3.7 million ga
Slide 7: Earnings Per Share
Earnings Per Share 2Q 2008 2Q 2009 Earnings Per Share $0.81* $0.67** Adjusted for: mark-to-market on interest rate caps and share (0.13) (0.21) based compensation Earnings Per Share $0.68* $0.46** excluding above charges Average Shares Outstanding 85.0 85.0 (Million) * Q2 2008 includes $0.38 per sha
Slide 8: Total Revenue
Total Revenue ($ Million) 2Q 2008 2Q 2009 Basic Lease Rents 126.6 141.4 Basic rents up 12% over Maintenance/End-of-Lease Revenue 17.8 28.4* second Sales Revenue 180.7 111.6 quarter 2008 Management Fees and Interest 7.9 6.4 Income Other Revenue 0.4 6.9 Total Revenue 333.4 294.7 * Includes ~$14 millio
Slide 9: Net Spread (Margin) – Second Quarter
Net Spread (Margin) – Second Quarter ($ Million) 2Q 2008 2Q 2009 % Change Basic Lease Rents 126.6 141.4 12% Less: Interest Expense* (33.5) (28.8) (14%) Net Spread (Margin) 93.1 112.6 21% Average Lease Assets 3,460 4,386 27% Annualized Margin(% Lease Assets) 11% 10% * Excludes non-cash charges relati
Slide 10: Net Spread (Margin) – First Half
Net Spread (Margin) – First Half ($ Million) 1H 2008 1H 2009 % Change Basic Lease Rents 253.1 282.8 12% Less: Interest Expense* (74.5) (57.7) (23%) Net Spread (Margin) 178.6 225.1 26% Average Lease Assets 3,381 4,261 26% Annualized Margin(% Lease Assets) 11% 11% * Excludes non-cash charges relating
Slide 11: Sales
Sales ($ Million) 2Q 2008 2Q 2009 Aircraft Sales 150.7 61.7 Engine Sales 7.6 23.0 Part Sales 22.4 26.9 Total Sales 180.7 111.6 Total Gain from Sales (pre-tax) 39.9 6.1 11
Slide 12: Leasing Expenses and SG&A
Leasing Expenses and SG&A 2Q 2008 2Q 2009 % Change ($ Million) Operating lease in costs 3.3 3.3 0% Leasing expenses 11.4 22.1* 94% SG&A 32.7 27.8 (15%) Total Leasing Expenses and SG&A 47.4 53.2 12% * Details on following page 12
Slide 13: Leasing Expenses
Leasing Expenses 2Q 2008 2Q 2009 ($ Million) Default Related Costs 0.0 4.5 Normal Transition 3.8 3.6 Costs Lessor Maintenance 4.8 8.1 Contributions AeroTurbine & Other 2.8 5.9 Leasing Costs Total Leasing Expenses 11.4 22.1 13
Slide 14: Aircraft Impairments from Receipt of End-of-Lease Payments
Aircraft Impairments from Receipt of End-of-Lease Payments P&L Impact is Neutral ($ Millions) End-of-Lease Aircraft Net Payments Impairments Amount Actual 1st Qtr 2009 $7.2 ($7.2) $0.0 2nd Qtr 2009 $13.7 ($13.7) $0.0 Note: Impairments relate to 3 aircraft in each quarter 14
Slide 15: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Millions) 2Q 2009 1H 2009 2008 Total Lost Basic Lease Rents (Net of Security Deposits) (0.9) (3.1) (14.3) Provision for Doubtful Accounts Receivable 0.0 0.0 (1.1) Maintenance Rents 0.0 0.0 12.2 Leasing Expenses (4.5) (11.3) (15.5) Total (5.4) (14.4) (18.7) Acc
Slide 16: Tax Rate
Tax Rate FY 2008 1H 2009 Tax Rate for Aircraft 2.0% Charge 1.2% Charge Tax Rate for Engine/Parts (56.8%) Income 34.3% Charge Blended Tax Rate (0.3%) Income 2.7% Charge Note: The tax income in 2008 resulted because the most significant portion of the charges relating to airline defaults and inventory
Slide 17: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 2Q 2008 2Q 2009 ($ Million) 8,000 6,131 6,000 5,218 Total Assets 18% increase over Owned and on 4,000 2Q 2008 Balance Sheet 2,000 0 Number of Aircraft Owned, On Order, Managed, Decrease in units largely driven by Contracted, on LOI (units) 314 290 sales of
Slide 18: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1H 2009 Total 2009 Commitments Aircraft Related 757 1,787 Engines/Airframes 33 33 Total Purchases 790 1,820 Number of Aircraft 21 41 Purchases (Units) 18
Slide 19: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft June YTD Lease Portfolio FY 2008 2009 Utilization Rate 97.7% 97.8% Portfolio Yield* 16.9% 15.5% Average Term (Months) New Leases for New Aircraft 124 133** New Leases for Used Aircraft 65 41*** 19
Slide 20: Debt and Equity
Debt and Equity ($ Million) 2Q 2008 2Q 2009 Total Debt 3,580 4,337 Average Cost of Debt in Second Quarter* 4.1% 2.7% Equity 1,106 1,295 Debt / Equity Ratio 3.2 to 1** 3.3 to 1** * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps ** Debt/Equity ratio is
Slide 21: Recent Funding/Cash Initiatives
Recent Funding/Cash Initiatives $4.5 billion in financings completed since 2Q 2008 Signed a joint venture agreement with Waha Capital for a 50/50 joint investment in AerVenture (committed equity investment from both parties of $270 million) $221 million of financing for pre-delivery payments on t
Slide 22: Funding/Access to Capital
Funding/Access to Capital Cash ($ Million) 2Q 2009 Cash and Cash Equivalents at June 30, 2009 $218 Total Cash Balance at June 30, 2009 (Incl. Restricted Cash) $347 Operating Cash Flow for 2Q 2009 $108 Total Capital Needs ($ Billion) ’09-’11 ’12/’13 Pre-Delivery & Final Delivery Payment Obligations $
Slide 23: 2009 Financial Outlook
2009 Financial Outlook The financial markets and access to capital remain uncertain and volatile. As a result, AerCap’s 2009 financial outlook is less certain than in years past, particularly given the increasing stresses imposed by the global economic climate on the financial conditions of many of
Slide 24: Appendix
Appendix * (AERCAP 24
Slide 25: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Aircraft Portfolio as of June 30, 2009 Aircraft 85% narrowbody – “Work under Horses” of industry Number of Number of Purchase Owned % Net Book Managed Aircraft Contract or Total Aircraft Value Aircraft on Order LOI Aircraft High share of liquid / remar