Slide 1: Third Quarter 2016 Financial Results
Third Quarter 2016 Financial Results November 8, 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: 3Q 2016 Financial Results and Highlights
3Q 2016 Financial Results and Highlights Financial Results Highlights • 143 aircraft transactions, including 26 widebody Net Income transactions • 99.8% fleet utilization 3Q 3QYTD ($ million) 2016 2016 • 6.1 years average remaining lease term Reported 225.6 682.0 • 95% of new aircraft deliveries thr
Slide 5: Net Income
Net Income 3Q 3Q 3QYTD 3QYTD ($ million) 2016 2015 2016 2015 Reported Net Income 225.6 293.9 682.0 914.5 Adjusted for: • Maintenance rights related expenses1 12.0 25.7 107.9 64.1 • AeroTurbine pre-tax results, including 73.0 (1.5) 109.8 (9.3) restructuring related expenses2 • Mark-to-market on in
Slide 6: Earnings Per Share
Earnings Per Share 3Q 3Q 3QYTD 3QYTD ($) 2016 2015 2016 2015 Reported Diluted Earnings Per Share 1.22 1.48 3.55 4.38 Adjusted for: • Maintenance rights related expenses, AeroTurbine pre-tax results, including restructuring related expenses, mark-to-market 0.47 0.18 1.24 0.40 on interest rate caps
Slide 7: Book Value Per Share
Book Value Per Share Sept. 30, Dec. 31, Sept. 30, % Incr/(Decr) ($ million except book value per share) 2016 2015 2015 over S ep. 3 0, 2 015 Total Shareholders’ Equity $8,370 $8,349 $8,060 3.8% Ordinary Shares Outstanding 181.7 200.3 197.5 Unvested Restricted Stock (3.3) (3.0) (0.2) Ordinary Shares
Slide 8: Revenues and Other Income
Revenues and Other Income ($ million) 3Q 2016 3Q 2015 Basic Lease Rents 1,088.0 1,164.6 Maintenance Rents and Other Receipts 91.9 81.1 Net Gain on Sale of Assets 22.4 51.6 Other Income 23.8 25.5 Total Revenues and Other Income 1,226.1 1,322.8 • Basic lease rents decreased primarily due to sales of o
Slide 9: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ million) 3Q 2016 3Q 2015 Net Interest Margin (Net Spread)1 815.7 892.3 Average Lease Assets2 34,577 36,397 Annualized Net Spread 9.4% 9.8% Average Cost of Debt (including all fees)3 3.8% 3.6% • Net spread reduction was impacted by the higher average cost of debt a
Slide 10: Aircraft Disposals and Purchases
Aircraft Disposals and Purchases ($ million) 3Q 2016 3Q 2015 Net Gain on Sale of Assets 22.4 51.6 3Q 2016 Disposal Activity: • 36 aircraft, with an average age of 12 years, were sold from our owned portfolio: • 7 Airbus A319-100s, 4 Airbus A320-200s, 2 Airbus A321-100s, 3 Airbus A321-200s, 4 Air
Slide 11: Other Expenses
Other Expenses ($ million) 3Q 2016 3Q 2015 Leasing Expenses 128.7 133.0 Selling, General & Administrative Expenses 80.8 91.2 Asset Impairment 15.1 7.9 Transaction, Integration and Restructuring Related 29.0 2.6 Expenses • SG&A expenses decreased due to the AeroTurbine downsizing as well as other exp
Slide 12: Liquidity Position
Liquidity Position Sources vs. Uses (Next 12 Months) Liquidity Levels Since ILFC Acquisition ($ billion as of September 30, 2016) ($ billion) Sources (for 1 2 months to S eptember 3 0, 2 017) 10.5 10.0 3 .0 x Unsecured Revolver 3.0 9.2 9.1 2 .8 x 9.0 Other Facilities a nd Contracted S ales 3.8 9.0 2
Slide 13: 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 14: Supplemental Information
Supplemental Information DUBLIN | AMSTERDAM | LOS ANGELES | SHANNON | FORT LAUDERDALE | MIAMI | SINGAPORE | SHANGHAI | ABU DHABI | SEATTLE | TOULOUSE ‘AERCAP.COM
Slide 15: Maintenance Rights
Maintenance Rights 3Q 2016 3Q 2016 3Q 2016 ($ million) Reported Amount Adjusted Amount Adjustment Depreciation and Amortization (439.9) (499.6) (59.7) Leasing Expenses (128.7) (57.0) 71.7 Pre-Tax Income Impact 12.0 Net Income Impact 10.5 • As a result of purchase accounting, a portion of the acquir
Slide 16: Capital Structure
Capital Structure Summary Sep. 30, 2016 Dec. 31, 2015 Adjusted Debt / Equity Ratio 2.7 to 1 2.9 to 1 Adjusted Debt/Equity Calculation ($ million) Sep. 30, 2016 Dec. 31, 2015 Debt (including fair value adjustments) 27,998 29,642 Adjusted for: • Unrestricted cash & cash equivalents (2,228) (2,403) • 5
Slide 17: High Quality and Well Diversified Portfolio as of September 30, 2016
High Quality and Well Diversified Portfolio as of September 30, 2016 Number of Number of Aircraft Type % Net Book Value Managed & Aircraft on Order 2 Total Aircraft Owned Aircraft1 AerDragon Aircraft Airbus A319 127 7 11 - 138 Airbus A320 216 14 30 - 246 Airbus A320neo Family 1 - - 218 219 Airbu
Slide 18: Forward Order & Purchase/Leasebacks as of September 30, 2016
Forward Order & Purchase/Leasebacks as of September 30, 2016 Remaining (Unit) 2017 2018 2019 2020 Thereafter Total 2016 Airbus A320neo Family 16 32 53 47 40 30 218 Airbus A350 3 8 9 2 - - 22 Boeing 737MAX - - 6 23 25 55 109 Boeing 787 2 18 14 6 - - 40 Embraer E190 / 195-E2 - - 5 14 14 17 50
Slide 19: AerCap contact details
AerCap AerCap House 65 St. Stephen’s Green Dublin 2, I reland +353 1 819 2010 contact@aercap.com Follow us on