Avolon — Q3 2015 Earnings Presentation
17 slides from Avolon's earnings presentation, Nov 12, 2015
Slide 1: Third Quarter 2015 Earnings Presentation
Exhibit 99.2 2015 Third11, November Quarter 2015 | Earnings Presentation
Slide 2: Disclaimer
Concerning Disclaimer This involve statements “continues,” These achieved. personnel; profitable the with forward-looking update to The adjusted most Avolon do financial limited financial document the directly so risks, these |known by U.S. return Slide leases; lessee are number applicable Forward-L
Slide 3: Five Essential Pillars for Success
Five Essential Minimum OEMs1 ?Top 1delivered Avolon 2Slide 3scale 4 lessors 5Pillars 10|Committed lessors Original and for Success 3?Founded Multi-cycle Equipment Fleet with & a global Sustainable ?Repeat Manufacturer capital access Recurring, globally (OEM) to ?20 committed year Depth order & requi
Slide 4: Strong Growth, Disciplined Risk Management
Strong STRONG $Q3 Change Adjusted Net Commitments Cost DISCIPLINED Average 2.7 Lease 7.0 Debt 4.7 Match 1Non-GAAP Avolon millions 2015 Q3 Income of WAL Term Funded Growth Funds | Fleet Slide Net GROWTH 2014 Remaining 44measure. Income1 Age 4.00% 6,574 458 and RISK 2015 +33% Disciplined 7,276 3.53% M
Slide 5: Continued Momentum Across the Business
Continued Total Robust 2016 Aircraft Airlines1 3x Q3 1Subject 2Non-GAAP Avolon aircraft 2015 ROE 2017 commitments Commitment | 29 Slide 14.6% todelivering Momentum 10 closing measure. ’5 ; Adjusted of for Pipeline inthe Across See 2016 2016, Bohai ROE2 slide stand SLB 2x themerger 15 in of Business
Slide 6: Financial Highlights
AVOLON FINANCIAL HIGHLIGHTS
Slide 7: Q3 Highlights
Q3 $350 $21 Unrealized Signed New ’$1.1 Avolon Availability 8 aircraft Circa $5.9 Refinancing Margin OnHighlights million track billion Unsecured million million $160 Merger | Slide reduced to delivered; mark-to-market of Trading million move of period of 7Liquidity Agreement New Debt three costs by
Slide 8: Sustained Growth
Sustained 7,000 4,000 5,262 5,000 6,370 INTEREST 60 40 REVENUE 250 150 202 $NET 70 50 30 44 Q3 Avolon millions 57 30 60 58 20 2015 2014 200 164 BOOK INCOME 6,000 3,000 57 20 40 10| 100 Slide Q3 10 0Strong +21% +1% +23% +33% EXPENSE 02,000 2015 VALUE 508 0 Growth 1,000 0
Slide 9: Generating Attractive Returns
Generating EPS Q3 ROE Diluted Adjusted Weighted 1Non-GAAP 43Issued 2014 AND Avolon Issued12.6% Shares |EPS shares Q3 ROE1 EPS2 Average ROE sharesAttractive 14.6% 2015 ($) Slidemeasure. 81,681,1313 9as as ($) PROGRESSION 14.6% 0.56 atChange at Shares 0.62 +2.0ppts December 0.72 Returns See 17.9% 0.92
Slide 10: Trading Gains
TRADING Q3 $Cumulative 2015 Trading Total Breakage Net % Q4 FY2015 1Sources: 432Inclusive Trading millions Gain 2015 Letters Book AvolonQ1-Q3 Interest |on Gains Gain1 Gain Fully Company $21 Costs Value2 gain Net2012 of Sale3 GAINS YTD million lease 8Intent on identified Book Slide 144 defined 1.4 10
Slide 11: Outlook and Guidance Update
Financial Acquisition Expected Returns Capital 1’Completion Target $1,521 $1,673 $598m LOIs FY ROE Net Guidance 2015 Debt Avolon guidance inStructure |c.9% Non-GAAP million closed place Net Outlook ROE /excludes Commitments Equity Costs Slidegain Trading to 11year of includes delivered total sell Up
Slide 12: Appendix
AVOLON APPENDIX » | Find out more at www.avolon.aero
Slide 13: Portfolio by Aircraft Type
at September Portfolio AIRCRAFT A319ceo A320ceo A321ceo A320neo A330neo A330-200/300 B737-800 B737 B787-8/9 Boeing E190 B777-200LRF—2—2 144 Avolon 106MAX 104 — B777-300ER | Slide 1— 49 10 3—13 62 6— 258 — 23TYPE 20 15 30, 3913 110 14 20 20 15 21 16 2015 65 —79 20 OWNED 10 3 — 3 MANAGED COMMITTED TOT
Slide 14: Reconciliation of Adjusted Net Income
Reconciliation operating In $tool Net Amortization Unrealized Share Bohai Tax Adjusted Avolon thousands addition, Income effect and based transaction | should Slide net activities, (142) loss adjusted 43,830 Q3 compensation—2,076 income of14 ofbe (gain) 2014 (1,165) debt Adjusted fees—5,867 consider
Slide 15: Reconciliation of ROE and Guidance
Reconciliation Q3 Guidance ROE Amortization Unrealized Share Bohai Tax Adjusted Avolon 2014 effect 12.6% based transaction | Slide Q3 ROE Guidance (0.1%) loss compensation 14.6% 2015 of15 of is(gain) 14.6% debt (Adjusted Adjusted (0.3%) fees FY 12.8% issuance 2015 17.9% on 0.0% (0.1%) derivatives 13
Slide 16: Reconciliation of Adjusted EPS
$Reconciliation Diluted Amortization Unrealized Share Bohai Tax Effect Net Weighted Adjusted Issued 1Issued 2Issued Avolon Q3Income effect 2014 based transaction of Shares |EPS shares Slide number EPS Net Average 0.00 Q3 loss ($ compensation 0.56 Income of (number 0.62 16 2015 thousands) as of (0.01
Slide 17: Thank You
AVOLON THANK YOU » | Find out more at www.avolon.aero