Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2015 Earnings Presentation
27 slides from Aercap's earnings presentation, Nov 10, 2015
Slide 1: Third Quarter 2015 Financial Results
November 10, 2015 Third Quarter 2015 Financial Results 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 respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements”. In some cases, forward- looking statements can
Slide 3: AerCap Investment Case
AerCap Investment Case Today AerCap is the largest and most profitable aircraft lessor Strong and resilient industry fundamentals Industry leading earnings and profitability delivering shareholder value Proven track record of rapid deleveraging Efficient and scalable platform Strong growth profile H
Slide 4: Financial Results and Highlights
Financial Results and Highlights Financial Results Highlights ADJUSTED NET INCOME • 306 aircraft transactions, including 86 widebody aircraft, executed 3QYTD 2015 • $328.0 million for 3Q 2015 ($293.9 million reported) • 99.7% fleet utilization rate for 3Q 2015 • $993.7 million for 3QYTD 2015 • 5.9 y
Slide 5: Track Record In Widebody Placement
Track Record In Widebody Placement AerCap continues to successfully place widebody aircraft REMARKETING OF USED WIDEBODY AIRCRAFT IS WELL UNDER WAY 75% of expiries1 through 2017 have already Boeing 777 2015 2016 2017 Total been placed2 Scheduled expiries (Dec 31, 2014) 1 4 12 17 Releases / Extension
Slide 6: Net Income
Net Income ($ million) 3Q 2015 3Q 2014 3QYTD 2015 3QYTD 2014 Reported Net Income 293.9 333.8 914.5 512.2 Adjusted for: • Mark-to-market on interest rate caps 9.3 0.4 16.0 10.4 and swaps, net of tax • Transaction and integration related 2.3 12.6 7.1 119.8 expenses, net of tax • Maintenance rights r
Slide 7: Basic Earnings Per Share
Basic Earnings Per Share ($) 3Q 2015 3Q 2014 3QYTD 2015 3QYTD 2014 Reported Earnings Per Share 1.49 1.57 4.44 3.13 Adjusted for: • Mark-to-market on interest rate caps and swaps, transaction and integration related expenses, and maintenance rights related 0.17 (0.18) 0.38 0.28 expenses, all net of
Slide 8: Maintenance Rights: 3Q 2015 Adjustment
Maintenance Rights: 3Q 2015 Adjustment ($ million) Reported Amount Adjusted Amount Adjustment Depreciation (460) (528) (68) Lease Expense (133) (39) 94 Pre-Tax Earnings Impact 26 Net Income Impact 23 • As a result of the purchase accounting, a p ortion o f the acquired ILFC aircraft value is classi
Slide 9: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2015 3Q 2014 Basic Lease Rents1 1,164.6 1,172.3 Maintenance Rents and Other Receipts 81.1 43.7 Net Gain on Sale of Assets 51.6 2.8 Other Income 25.5 26.1 Total Revenues and Other Income 1,322.8 1,244.9 (1) The decrease was driven primarily by the extension of
Slide 10: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 3Q 2015 3Q 2014 Net Interest Margin (Net Spread)1 892.3 907.4 Average Lease Assets2 36,397 35,808 Annualized Net Spread % 9.8% 10.1% (1) Net Interest Margin calculated as basic lease rents less interest expense, excluding the non-cash charges related to
Slide 11: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 3Q 2015 3Q 2014 Pre-Tax Gain from Aircraft Sales 51.6 2.8 3Q 2015 Disposal Activity1: • 12 aircraft, with an average age of 12 years, were sold and 1 aircraft was parted-out from our owned portfolio: • 2 Airbus A320-200s and 4 Airbus A330-200s • 2 Boe
Slide 12: Other Expenses and Taxes
Other Expenses and Taxes ($ million) 3Q 2015 3Q 2014 Leasing1 133.0 31.4 SG&A 91.2 96.0 Impairment2 7.9 1.6 Transaction and Integration Related3 2.6 14.4 3QYTD 2015 FY 2014 Blended Tax Rate4 13.5% 15.0% (1) 3Q 2015 leasing expenses include $93.6 million in maintenance rights expenses which resulted
Slide 13: Cash
Cash ($ million) 2015 2014 Cash and Cash Equivalents as of September 30 1,301.5 1,744.3 (excl. restricted cash) Total Cash Balance as of September 30 1,686.1 2,417.6 (incl. restricted cash) Operating Cash Flow1 for 3Q 796.4 879.6 Annual run-rate for operating cash flow is over $3.0 billion (1) 3Q 2
Slide 14: Liquidity Position as of September 30, 2015
Liquidity Position as of September 30, 2015 Sources (for 12 months to September 30, 2016) ($ b illion) Sources do not assume additional financing for Unsecured Revolver 3.0 deliveries of new Other Commitments 1.6 aircraft purchases AIG Revolver 0.5 Unrestricted Cash 1.3 Sources do not include Total
Slide 15: Capital Structure
Capital Structure Summary 3Q 2015 3Q 2014 Average Cost o f Debt (including all fees)1 3.6% 3.4% Debt / Equity Ratio 3.1 to 1 3.5 to 1 Debt/Equity Calculation ($ million) 3Q 2015 3Q 2014 Debt at Quarter-End (incl. fair value adjustments) 29,321 30,828 Adjusted for: • Unrestricted cash & cash equival
Slide 16: Financial Outlook
6 AERCAP é Aviation Solutions Financial Outlook ‘AERCAP.COM
Slide 17: Financial Outlook for 2015: Adjusted Net Income
Financial Outlook for 2015: Adjusted Net Income ($ billion) Full Year 2015 Total Revenue (incl. gain on sale) ~5.2 Depreciation ~(2.1) Interest Expense ~(1.1) Lease Expense, SG&A & Other ~(0.5) Adjusted Pre-Tax Earnings ~1.5 Adjusted Net Income ~1.3 ~14 percent Anticipated drivers for AerCap’s 2015
Slide 18: AERCAP é
6 AERCAP é Aviation Solutions ‘AERCAP.COM
Slide 19: Supplemental Information
Supplemental Information 3 19 4
Slide 20: Executed 306 Aircraft Transactions
Executed 306 Aircraft Transactions (during the nine months ended S eptember 3 0, 2 015) AerCap continues to lease or sell an aircraft on average every 24 hours, consisting of two widebody and five narrowbody aircraft transactions per week 216 35 55 LEASE AIRCRAFT AIRCRAFT AGREEMENTS PURCHASED DISPOS
Slide 21: Aircraft Transactions by Type
Aircraft Transactions by Type (during the nine months ended S eptember 3 0, 2 015) Aircraft Type Leases Signed Sales Executed Airbus A320 Family 71 15 Airbus A320neo Family 16 - Airbus A330 28 5 Airbus A340 3 3 Boeing 737NG 68 - Boeing 737Classics 5 8 Boeing 747 2 2 Boeing 757 2 12 Boeing 767 10 2
Slide 22: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio 3Q 2015 3Q 2014 Utilization Rate1 (%) 99.7 99.3 Portfolio Yield2 (%) 13.7 13.6 Average Lease Term (Previous 12 months) • Leases for New Aircraft (Years) 11.63 12.0 • Leases for Used Aircraft (Years) 5.74 4.9 (1) Utilization rate weighte
Slide 23: AerCap's Platform Capabilities
AerCap’s Platform Capabilities AerCap has executed 465 leases over the past 18 months, approx. 26 each month 349 narrowbody aircraft leases 116 widebody aircraft leases ~53% extensions 1 ~67% extensions1 Boeing 787 Boeing 21 Airbus A320 737NG family 129 139 Boeing 767 Airbus A330 16 51 Boeing 777 9
Slide 24: High Quality and Well Diversified Portfolio as of September 30, 2015
High Quality and Well Diversified Portfolio as of September 30, 2015 Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order2 Total Aircraft Owned Aircraft1 AerDragon Aircraft Airbus A319 140 7 11 - 151 Airbus A320 234 15 32 - 266 Airbus A320 / A321neo - - - 209 209 Airbu
Slide 25: Forward Order & Purchase/Leasebacks as of September 30, 2015
Forward Order & Purchase/Leasebacks as of September 30, 2015 Remaining (Unit) 2016 2017 2018 2019 Thereafter Total 2015 Airbus A320 / A321neo 1 21 45 42 40 60 209 Airbus A350 1 10 11 6 - - 28 Boeing 737NG 6 1 - - - - 7 Boeing 737MAX - - - 6 23 109 80 Boeing 787 4 13 17 16 5 - 55 Embraer E1
Slide 26: Leasing Expenses
Leasing Expenses ($ million) 3Q 2015 3Q 2014 Default and Restructuring Related1 10.6 3.9 Normal Transition Costs 17.9 15.6 Maintenance Rights Expense 93.6 7.9 Lessor Maintenance Contributions 6.2 1.4 Other Leasing Costs 4.7 2.6 Leasing Expenses 133.0 31.4 (1) 3Q 2015 default & restructuring related
Slide 27: Head Office, AerCap House
Head Office, AerCap House Stationsplein 965 1117 CE Schiphol, The Netherlands +31 20 655 9655 contact@aercap.com 3 27 4