Aercap Holdings N.v. · NYSE:AER
Aercap — Q2 2016 Earnings Presentation
21 slides from Aercap's earnings presentation, Aug 9, 2016
Slide 1: Second Quarter 2016 Financial Results
Second Quarter 2016 Financial Results August 9, 2016 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 events described in the forward-looking statements in this presentation with respect to future performance and events. These statements, might not occur. Accordingly, you
Slide 3: AerCap Investment Case
AerCap Investment Case AerCap is the global leader in aircraft leasing Resilient industry fundamentals Global platform with unmatched breadth and reach Strong earnings and cash flow generation Disciplined portfolio management Strong liquidity and access to capital Hedging strategies to mitigate risk
Slide 4: Financial Results and Highlights
Financial Results and Highlights Financial Results Highlights NET INCOME • 68 aircraft transactions, including 27 widebody transactions 2Q 1H ($ million) 2016 2016 • 99.4% fleet utilization Reported 233.3 456.4 • 6.0 years average remaining lease term Adjusted 291.6 593.3 • 90% of new aircraft deliv
Slide 5: Widebody Placements
Widebody Placements Placement Status of Boeing 777s and Airbus A330s1 Continued Progress 43 Only 7 Boeing 777 and Unplaced Airbus A330 aircraft remain Placed2 to b e p laced through 2017 34 7 25 AerCap leased o r sold 26 52 widebody aircraft in 1H 2016 alone We are in active d ialogue 27 8 on the re
Slide 6: Order Book Placements
Order Book Placements Placement Status of New Aircraft Deliveries Order Book Leasing All of o ur aircraft d elivering Unplaced 79 through 2017 h ave b een Leased1 70 leased 1 17 31 ~12 62 years AVERAGE LEASE TERM FOR NEW AIRCRAFT Remaining 2016 2017 2018 (1) Either under a lease contract or letter o
Slide 7: Net Income
Net Income ($ million) 2Q 2016 2Q 2015 1H 2016 1H 2015 Reported Net Income 233.3 309.1 456.4 620.6 Adjusted for: • Maintenance rights related expenses1 46.2 58.3 95.9 38.4 • AeroTurbine pre-tax results, including 11.2 (3.9) 36.7 (7.9) restructuring related expenses2 • Mark-to-market on interest r
Slide 8: Earnings Per Share
Earnings Per Share ($) 2Q 2016 2Q 2015 1H 2016 1H 2015 Reported Diluted Earnings Per Share 1.22 1.46 2.35 2.91 Adjusted for: • Maintenance rights related expenses, AeroTurbine pre-tax results, including restructuring related expenses, mark-to-market 0.34 0.27 0.78 0.21 on interest rate caps and s
Slide 9: Book Value Per Share
Book Value Per Share Jun 30, Dec 31, Jun 30, % Incr/(Decr) (million except book value per share) 2016 2015 2015 over J un 3 0, 2 015 Total Shareholders’ Equity $8,352 $8,349 $7,746 7.8% Ordinary Shares Outstanding 187.8 200.3 197.4 Unvested Restricted Stock (3.3) (3.0) (0.2) Ordinary Shares Outstand
Slide 10: Revenues and Other Income
Revenues and Other Income ($ million) 2Q 2016 2Q 2015 Basic Lease Rents 1,106.3 1,164.6 Maintenance Rents and Other Receipts 70.9 69.7 Net Gain on Sale of Assets 38.4 54.6 Other Income 23.9 48.6 Total Revenues and Other Income 1,239.5 1,337.5 • Basic lease rents decreased primarily due to sales of o
Slide 11: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 2Q 2016 2Q 2015 Net Interest Margin (Net Spread)1 833.2 909.7 Average Lease Assets2 35,140 36,633 Annualized Net Spread 9.5% 9.9% Average Cost of Debt (including all fees)3 3.7% 3.5% • Net spread decreased due to lower basic lease rents and higher interes
Slide 12: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 2Q 2016 2Q 2015 Net Gain on Sale of Assets 38.4 54.6 2Q 2016 Disposal Activity: • 32 aircraft, with an average age of 14 years, were sold from our owned portfolio: • 3 Airbus A319-100s, 8 Airbus A320-200s, 1 Airbus A321-100, 3 Airbus A321-200s, 2 Airb
Slide 13: Other Expenses
Other Expenses ($ million) 2Q 2016 2Q 2015 Leasing Expenses 143.1 173.4 Selling, General & Administrative Expenses 86.5 91.5 Asset Impairment 10.5 2.7 Transaction, Integration and Restructuring Related 3.5 1.1 Expenses1 • Leasing expenses decreased primarily due to a ~$20 million decrease in mainten
Slide 14: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Since ILFC Acquisition ($ billion as of June 30, 2016) ($ billion) Sources (for 1 2 months to June 3 0, 2 017) 10.5 10.0 3 .0 x Unsecured Revolver 3.0 9.2 9.1 2 .8 x Other Facilities a nd Contracted S ales 4.4 9.0 2 .6 x Unrestric
Slide 15: Q&A
GLOBAL LEADER IN AVIATIO Q&A DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 16: Supplemental Information
Supplemental Information DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 17: Maintenance Rights
Maintenance Rights 2Q 2016 2Q 2016 2Q 2016 ($ million) Reported Amount Adjusted Amount Adjustment Depreciation and Amortization (451.3) (511.6) (60.3) Leasing Expenses (143.1) (36.6) 106.5 Pre-Tax Income Impact 46.2 Net Income Impact 40.5 • As a result of purchase accounting, a portion of the acqui
Slide 18: Capital Structure
Capital Structure Summary Jun 30, 2016 Dec 31, 2015 Adjusted Debt / Equity Ratio 2.8 to 1 2.9 to 1 Adjusted Debt/Equity Calculation ($ million) Jun 30, 2016 Dec 31, 2015 Debt (including fair value adjustments) 29,139 29,642 Adjusted for: • Unrestricted cash & cash equivalents (2,585) (2,403) • 50% e
Slide 19: High Quality and Well Diversified Portfolio as of June 30, 2016
High Quality and Well Diversified Portfolio as of June 30, 2016 Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order 2 Total Aircraft Owned Aircraft1 AerDragon Aircraft Airbus A319 134 7 11 - 145 Airbus A320 220 14 32 - 252 Airbus A320neo Family - - - 209 209 Airbus A3
Slide 20: Forward Order & Purchase/Leasebacks as of June 30, 2016
Forward Order & Purchase/Leasebacks as of June 30, 2016 Remaining (Unit) 2017 2018 2019 2020 Thereafter Total 2016 Airbus A320neo Family 20 39 50 40 40 20 209 Airbus A350 7 13 4 1 - - 25 Boeing 737MAX - - 6 23 25 55 109 Boeing 787 4 18 14 6 - - 42 Embraer E190 / 195-E2 - - 5 14 14 17 50 Tot
Slide 21: AerCap La Touche House IFSC
AerCap La Touche House IFSC Dublin 1, I reland +353 1 819 2010 contact@aercap.com