Slide 1: Risk – Anton Joiner, Chief Risk Officer
RISK ANTON JOINER CHIEF RISK OFFICER
Slide 2: Key Messages
KEY MESSAGES Rigorous Approach to Lease Protections at the Outset Cash Focus During Downturns Helped Navigate Through Crises Experience and Scale Means We Act First Providing Better Outcomes © AerCap 53
Slide 3: What Risk Management Means at AerCap
WHAT RISK MANAGEMENT MEANS AT AERCAP 5 Act Immediately 1 to Address Select the Defaults Right Lessee 4 RISK MANAGEMENT Constant Financial 2 and Technical Execute an Surveillance Appropriate Lease 3 Ensure Punctual Payment © AerCap 54
Slide 4: Improving Credit Quality of the Portfolio
IMPROVING CREDIT QUALITY OF THE PORTFOLIO GECAS transaction improved customer diversification and concentration GECAS Enhanced Customer Diversity GECAS Transaction Reduced Concentration Customer Credit Strength Normalizing 5 100% S&P = BB Overlapping ~BB 90% New Customers Customers 31% 80% 5.5 BB 38
Slide 5: Aircraft Leasing Leads on Cash Collection
AIRCRAFT LEASING LEADS ON CASH COLLECTION AerCap’s days receivables is much lower than other leasing industry peers Trade Receivables / Revenue Aircraft Leasing (Days) 2 DAYS 70 60 50 40 30 20 10 2 - 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24
Slide 6: Aircraft Leasing Leads on Cash Collection
AIRCRAFT LEASING LEADS ON CASH COLLECTION AerCap’s days receivables is much lower than other leasing industry peers Trade Receivables / Revenue Aircraft Leasing Railcar Leasing Truck Leasing Equipment Leasing (Days) 2 DAYS 23 DAYS 46 DAYS 58 DAYS 70 60 58 50 46 40 30 23 20 10 2 - 3Q14 1Q15 3Q15 1Q16
Slide 7: Risk Management – During a Global Pandemic
RISK MANAGEMENT – DURING A GLOBAL PANDEMIC Experience and decisive action mitigated the impact of the most extreme stress test the industry has ever faced CUSTOMERS SYSTEMATIC CLEAR SCALE AND EMERGED APPROACH STRATEGY EXPERIENCE STRONGER Methodical approach Focused on value Scale provides leverage T
Slide 8: Agility in Action
AGILITY IN ACTION We have the experience to detect early warning signs and the platform to secure aircraft quickly Go First Mounting Evidence Aircraft Recovered New Customer BANKRUPTCY of Distress from India and Secured FILING Deregistered Go First Cebu Pacific 4 AIRCRAFT RED LINES +2 MONTH +3 MONTH
Slide 9: Agility in Action
AGILITY IN ACTION We have the experience to detect early warning signs and the platform to release aircraft quickly Heightened Viva Colombia Consensual Viva Colombia 1st AerCap Surveillance Files for Creditor Aircraft Suspends Aircraft Back in Protection Control Operations Service Secured and Earnin
Slide 10: Repossession Management
REPOSSESSION MANAGEMENT AerCap has successfully repossessed aircraft in many challenging jurisdictions around the world Lithuania Ukraine Poland AerCap has repossessed Denmark Norway >200 Belgium Russia Bulgaria Canada Romania China UK Georgia United States Germany Armenia Myanmar France Afghanistan