Fly Leasing — Investor Presentation (September 2018)
15 slides from Fly Leasing's investor presentation, Sep 5, 2018
Slide 1: Fly Leasing
FLY LEASING September 2018 a fly leasing
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements: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,” “s
Slide 3: FLY at a Glance
FLY AT A GLANCE 85aircraft$3.0 billion net book valueYoung Fleet6.8 years average age Long Leases6.2 years average lease termDiversified Lessees45 airlines in 27 countries 55 Aircraft contractedplus 20 options$2.1 billionCommitted pipelineOpportunity to acquire up to 41 A320neo family aircraft Conse
Slide 4: Favorable industry fundamentals
$33.8billion GLOBAL AIRLINE 2018 PROFIT FORECAST AMPLE CAPACITY AT ATTRACTIVE RATES UNDERPINNED BY PASSENGER GROWTH AND MANUFACTURER BACKLOGS 7.0% 2018 GROWTH forecast ON TRACK Robust Global Air Traffic Growth Continued Airline Profitability Healthy Demand for LEASED Aircraft Positive Financial Mark
Slide 5: Strategy Driving Higher ROE and EPS
Strategy Driving Higher ROE and Eps Selling Older and Under-Performing Aircraft Reducing SG&A Reducing Financing Costs Reinvesting in Newer, More Profitable Aircraft Repurchased Shares at a Discount to Book Value
Slide 6: Increasing financial results
Increasing financial results Adjusted ROE Full year 2018 pre-tax income guidance of $75–80 million on target Adjusted Net Income Adjusted EPS Revised to conform to current period presentation. (1) (1) NBV per Share 10% 3.9x 3.6x 3.4x (1)
Slide 7: Portfolio Acquisition Update
Portfolio acquisition Update 2018 Initial Portfolio TRANSFERS PURCHASE-Leasebacks21 new A320neo family aircraft Delivering 2019 – 2021NEO Options20 new A320neo family aircraft Delivering 2019 – 2025 2019 and beyond 4 6 11 A320neos A321neos 34 A320 aircraft 7 CFM engines completed YTD22 aircraft Immi
Slide 8: Financing & Leverage
Projected gross Debt / Equity Ratio Impact on Leverage financing & leverage $574.5 million term loan facility2-year and 5-year tranchesBlended pricing of L + 1.725% Syndicate of 18 banks INITIAL PORTFOLIO FINANCING Gross leverage temporarily at 4.7x Projected to reduce to 3.5x:Planned aircraft sales
Slide 9: 2018 Sales and Sale Strategy
2018 sales Sale strategy Aircraft sales 3 Aircraft sold YTDAverage age 12.6 yearsAverage remaining lease term 2.5 years Economic gain of $21.3 million(1) (19% premium to NBV) Targeting to sell $150+ million of AirAsia exposure Targeting mandates by year end; transfers to follow into 2019Reduces leve
Slide 10: BBAM shareholders own 17% of FLY shares
BBAM shareholders own 17% of FLY sharesLargest insider holding of any public aircraft lessorPurchased 1.3 million shares at $15.00 per share in July Alignment of interests BBAM shareholders’ increasING ownership in FLY Apr 2010 Purchased 1.0 million shares Dec 2012 Purchased 2.2 million shares Jan 2
Slide 11: Appendices
appendices
Slide 12: Capital Structure & Liquidity Overview
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’ equi
Slide 13: Remarketing Overview
remarketing overview AIRCRAFT REMARKETING REQUIREMENTS FLY’s portfolio has a weighted average remaining lease term of 6.2 years (# of aircraft) Last 2018 remarketing requirement is a narrowbody on lease expiring in December More than 50% of 2019 remarketing requirements have been completedMarket rem
Slide 14: Diverse Group of Global Lessees
DIVERSE GROUP OF GLOBAL LESSEES FLY Top 10 Lessees # Lessee % of Value 1 12% 2 11% 3 9% 4 4% 5 4% 6 4% 7 4% 8 3% 9 3% 10 3% Top 10 Lessees 55% Initial Portfolio # Lessee % of Value 1 AirAsia 41% 2 Thai AirAsia 23% 3 Indonesia AirAsia 14% 4 AirAsia India 13% 5 Philippines AirAsia 7% 6 Pakistan Int. A
Slide 15: Adjusted Net Income & Adjusted ROE
Adjusted net income & Adjusted roe Revised to conform to current period presentation.Percentages have been annualized.