Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2018 Earnings Presentation
18 slides from Aercap's earnings presentation, Oct 30, 2018
Slide 1: Third Quarter 2018 Financial Results
Third Quarter 2018 Financial Results October 30, 2018 AerCap Holdings N.V.
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 not rely upon forward-looking statements as a prediction of actual results respect to future performance and events. These statements, estimates and we do not assume
Slide 3: AerCap's Business Model
AerCap’s Business Model Buy the right aircraft, place them on long-term contracts and generate consistent returns WORLD’S LARGEST LEASED ON FIXED ACTIVE RISK CONSISTENT AND OWNER OF LONG-TERM MANAGEMENT AND STABLE COMMERCIAL CONTRACTS CAPITAL ALLOCATION PROFITABILITY AIRCRAFT1 AVERAGE REMAINING 1,45
Slide 4: 3Q 2018 Financial Results and Highlights
3Q 2018 Financial Results and Highlights Financial Results Highlights • 87 aircraft transactions, including 20 widebody Net Income transactions ($ million) 3Q 3Q YTD • Over 90% of new aircraft deliveries through 2018 2018 2020 leased Net Income 263.4 783.0 • 6.6 years average age of owned fleet and
Slide 5: Net Income and Earnings Per Share
Net Income and Earnings Per Share 3Q YTD 3Q YTD 3Q 2018 3Q 2017 2018 2017 Net Income ($ million) 263.4 265.8 783.0 809.9 Diluted Earnings Per Share ($) 1.79 1.62 5.21 4.77 Key Highlights • Diluted earnings per share increased 10%, primarily driven by the repurchase of 20.0 million shares from July 2
Slide 6: Book Value Per Share
Book Value Per Share (millions, except per share data) Sept. 30, 2018 Sept. 30, 2017 Total Shareholders’ Equity $8,870 $8,546 Ordinary Shares Outstanding 147.0 158.0 Unvested Restricted Stock (2.1) (2.8) Ordinary Shares Outstanding 144.8 155.2 (excl. Unvested Restricted Stock) Book Value Per Share1
Slide 7: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2018 3Q 2017 Basic Lease Rents 1,038.5 1,038.4 Maintenance Rents and Other Receipts 93.9 163.0 Net Gain on Sale of Assets 20.0 63.7 Other Income 14.1 8.8 Total Revenues and Other Income 1,166.5 1,273.9 • Maintenance rents and other receipts decreased primaril
Slide 8: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 3Q 2018 3Q 2017 Net Interest Margin (Net Spread)1 741.5 760.2 Average Lease Assets2 35,280 34,035 Annualized Net Spread 8.4% 8.9% Average Cost of Debt3 4.1% 4.0% Including all fees Average Age of Owned Fleet (years) 6.6 7.1 As of September 30, 2018 and 20
Slide 9: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 3Q 2018 3Q 2017 Net Gain on Sale of Assets 20.0 63.7 3Q 2018 Aircraft Disposal Activity: • 13 aircraft, with an average age of 17 years, were sold from our owned portfolio: • 4 Airbus A320 Family aircraft, 2 Airbus A330s and 1 Airbus A340 • 1 Boeing 737NG
Slide 10: Other Expenses
Other Expenses ($ million) 3Q 2018 3Q 2017 Maintenance Rights Expense 33.5 109.1 Other Leasing Costs 51.3 28.7 Selling, General & Administrative Expenses 63.4 83.9 Asset Impairment 12.8 45.6 • Maintenance rights expense decreased primarily as a result of the lower maintenance rights intangible asset
Slide 11: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Over the Last 8 Quarters ($ billion as of September 30, 2018) ($ billion) Sources (for 12 months to September 30, 2019) 11.7 12.0 3.5x Unsecured Revolver 4.0 10.8 11.0 3.3x Other Facilities and Contracted Sales 5.8 3.1x 10.5 9.5 9
Slide 12: Q&A
GLOBAL LEADER IN AVIATIO Q&A DUBLIN | SHANNON | LOS ANGELES | SINGAPORE | AMSTERDAM | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 13: Supplemental Information
Supplemental Information DUBLIN | SHANNON | LOS ANGELES | SINGAPORE | AMSTERDAM | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 14: Capital Structure
Capital Structure Summary Sept. 30, 2018 Dec. 31, 2017 Adjusted Debt / Equity Ratio 2.7 to 1 2.8 to 1 Adjusted Debt/Equity Calculation ($ million) Sept. 30, 2018 Dec. 31, 2017 Debt (including fair value adjustments) 28,388 28,421 Adjusted for: • Unrestricted cash & cash equivalents (1,176) (1,660) •
Slide 15: High Quality and Well Diversified Portfolio as of September 30, 2018
High Quality and Well Diversified Portfolio as of September 30, 2018 Number of % Net Number of Number of Total Aircraft Type Owned Aircraft Book Value Managed Aircraft on Order Aircraft Aircraft Airbus A320 Family 332 18 50 − 382 Airbus A320neo Family 71 10 − 199 270 Airbus A330 75 10 11 − 86 Airbus
Slide 16: Forward Order and Purchase/Leasebacks as of September 30, 2018
Forward Order and Purchase/Leasebacks as of September 30, 2018 Aircraft Type 2018 2019 2020 2021 2022 Thereafter Total Airbus A320neo Family 22 48 47 32 25 25 199 Airbus A350 2 2 − − − − 4 Boeing 737MAX 3 17 26 28 27 1 102 Boeing 787 5 15 4 6 6 9 45 Embraer E190 / 195-E2 1 10 15 14 10 − 50 Total Air
Slide 17: Endnotes
Endnotes SLIDE 3: AerCap’s Business Model 1. By aircraft value, based on FlightGlobal data, airline company filings and AerCap estimates. SLIDE 6: Book Value Per Share 1. Based on ordinary shares outstanding excluding unvested restricted stock. Unvested restricted stock represents ordinary share uni
Slide 18: AerCap Holdings N.V. contact details
AerCap Holdings N.V. AerCap House 65 St. Stephen’s Green Dublin 2, Ireland +353 1 819 2010 contact@aercap.com Follow us on