Aercap Holdings N.v. · NYSE:AER
Aercap — Debt Investor Presentation (February 2016)
30 slides from Aercap's debt investor presentation, Feb 26, 2016
Slide 1: Global Leader in Aviation Bondholder Presentation
AerCap Global Leader in Aviation Bondholder Presentation AerCap Holdings N.V. February, 2016
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 be
Slide 3: AerCap Investment Case
AerCap Investment Case AerCap is the largest and most profitable aircraft lessor Strong and resilient industry fundamentals Global and efficient platform with high quality, diversified and transferrable assets Stable fleet utilization through all economic cycles Stable and durable cash flows with re
Slide 4: Strategic Initiatives Update
Strategic Initiatives Update 2015 was AerCap’s most successful year ever We have exceeded all financial and integration targets set at announcement of ILFC acquisition Record level of 359 lease and sale transactions completed, including ~100 widebody aircraft transactions Over $1.7 billion of asset
Slide 5: Financial Results and Highlights
Financial Results and Highlights Financial Results ADJUSTED NET INCOME $1,275.8 million for FY 2015 ($1,178.7 million reported) $282.1 million for 4Q 2015 ($264.2 million reported) ADJUSTED BASIC EARNINGS PER SHARE1 $6.26 for FY 2015 ($5.78 reported) $1.43 for 4Q 2015 ($1.34 reported) Highlights 405
Slide 6: Market Concerns vs. Reality
Market Concerns vs. Reality CONCERN Low oil prices diminishing value of orderbook China & other emerging markets Declining widebody aircraft values Availability of credit REALITY Stable new aircraft placements Robust traffic growth in most markets Stable demand for most widebodies Closed 2015 with r
Slide 7: Low Oil Prices
Low Oil Prices Low oil prices are unequivocally good for aircraft leasing companies Airlines Continue to Demand New Aircraft Despite Low Fuel Environment Low oil prices boost airlines’ profitability and credit quality as fuel is one of their largest costs Airlines are passing along benefits to consu
Slide 8: China & Other Emerging Markets
China & Other Emerging Markets AerCap continues to place aircraft on favorable terms across the globe China Remains a Strong Market for AerCap Despite slower GDP growth, demand for air travel remains strong as China shifts toward consumer-based economy 10.9% traffic growth (RPKs) in 2015 1 Chinese a
Slide 9: China Growth
China Growth Despite a slowing economy and volatile stock market, Chinese passenger growth remains robust China’s Real GDP Growth 1 China’s Domestic Traffic Growth (RPK) 2 Shanghai Stock Exchange Index 3 (1) Source: IMF. (2) Source: IATA. (3) Source: Bloomberg (SHCOMP Index).
Slide 10: Track Record of Widebody Placement
Track Record of Widebody Placement AerCap platform continues to successfully place widebody aircraft REMARKETING OF USED WIDEBODY AIRCRAFT IS WELL UNDER WAY Scheduled expiries (Dec. 31, 2014) Releases / Extensions 1 Sales Planned Part-outs Current Placement Requirement 83% of expiries through 2017 h
Slide 11: Operating Update
Operating Update
Slide 12: Consistent Margins
Consistent Margins Since 2007, AerCap has grown its assets ten-fold with consistent 12% annual average EPS 1 growth through all economic cycles (1) 2007 Adjusted Basic EPS: $2.48; 2015 Adjusted Basic EPS: $6.26.
Slide 13: Consistent Fleet Utilization
Consistent Fleet Utilization AerCap has achieved stable fleet utilization through all economic cycles
Slide 14: Forward Leasing on Track
Forward Leasing on Track AerCap leases an aircraft every working day on average 276 Lease Agreements Executed in FY2015 out of 405 Aircraft Transactions Executed in FY2015 AERCAP EXECUTED MORE LEASE AGREEMENTS IN 2015 ALONE THAN THE NUMBER OF REQUIRED PLACEMENTS OVER THE NEXT THREE YEARS Unplaced ne
Slide 15: Order Book Placements
Order Book Placements Over 85% of our committed deliveries1 through 2018 are leased 2 ORDER BOOK DELIVERIES & PLACEMENT STATUS All of our aircraft delivering in the next 2 years are leased 2 First placement for 10 737 MAX 8s executed in January 2016 Overall, 30 new aircraft have been leased since 3Q
Slide 16: Trading Update
Trading Update Proven track record of active portfolio management ACTIVE TRADING OF BOTH OWNED AND MANAGED FLEET 438 aircraft sold and parted-out since 2006 Profitably managing aircraft through their lifecycle Average gain of ~$1.7 million per aircraft on owned aircraft sales and part-outs since 200
Slide 17: Receivables Trend
Receivables Trend AerCap continues to closely manage receivables Increase in arrears during September mainly attributable to Transaero - all 10 aircraft have been recovered and have already been leased or sold In spite of currency pressures in other emerging market economies, we have not seen any im
Slide 18: Investment Grade Capital Management
Investment Grade Capital Management AerCap remains committed to conservative capital management Metric AerCap Targets Debt maturities Continue to align debt maturities with operating cash flows Liquidity Maintain strong liquidity position at ≥1.2x sources to uses - investment grade standard Maintain
Slide 19: Capital and Liquidity Initiatives
Capital and Liquidity Initiatives Secured and unsecured markets are AerCap’s key sources for accessing capital $7.3 BILLION OF FUNDING COMPLETED IN 2015, including: $1.0 billion Senior Unsecured Notes Issued upsized from $800 million $1.0 billion Senior Unsecured Notes Issued upsized from $400 milli
Slide 20: Strong Liquidity Position
Strong Liquidity Position Record liquidity of $9.2 billion demonstrates AerCap’s strong access to capital CONSISTENT COMMITMENT TO LIQUIDITY Available Liquidity Sources to Uses 1 Coverage Target (1) Total sources compared to next 12 months’ contractual obligations. Sources do not assume any addition
Slide 21: Cash ($ million)
Cash ($ million) 2015 2014 Cash and Cash Equivalents as of December 31 (excl. restricted cash) 2,403.1 1,490.4 Total Cash Balance as of December 31 (incl. restricted cash) 2,822.5 2,207.8 Operating Cash Flow for the Full Year 3,360.0 2,313.7 Operating Cash Flow for the Fourth Quarter 953.8 839.7 Ann
Slide 22: Capital Structure Summary
Capital Structure Summary 4Q 2015 4Q 2014 Average Cost of Debt (including all fees) 1 3.7% 3.6% Debt / Equity Ratio 2.9 to 1 3.4 to 1 Debt/Equity Calculation ($ million) 4Q 2015 4Q 2014 Debt at Quarter-End (incl. fair value adjustments) 29,807 30,402 Adjusted for: Unrestricted cash & cash equivalent
Slide 23: Global Leader in Aviation
GLOBAL LEADER IN AVIATIO
Slide 24: Supplemental Information
GLOBAL LEADER IN AVIATION “* Ss | Supplemental Information
Slide 25: Executed Aircraft Transactions – Full Year 2015
Executed 405 Aircraft Transactions – Full Year 2015 AerCap continues to lease or sell an aircraft on average every 24 hours, consisting of two widebody and five narrowbody aircraft transactions per week 276 LEASE AGREEMENTS EXECUTED including: 71 widebody and 205 narrowbody aircraft 46 AIRCRAFT PURC
Slide 26: Leases Signed and Sales Executed by Aircraft Type
Aircraft Type Leases Signed Sales Executed Airbus A320 Family 104 22 Airbus A320neo Family 25 - Airbus A330 35 7 Airbus A340 3 5 Boeing 737NG 68 5 Boeing 737Classic 6 12 Boeing 747 3 5 Boeing 757 2 15 Boeing 767 14 3 Boeing 777 6 5 Boeing 787 9 2 Other 1 2 Total 276 83
Slide 27: Lease Portfolio
Lease Portfolio FY 2015 FY 2014 Utilization Rate 1 (%) 99.5 99.2 Portfolio Yield2 (%) 13.7 13.5 Average Lease Term (Previous 12 months) Leases for New Aircraft (Years) 11.4 3 12.0 Leases for Used Aircraft (Years) 6.1 4 4.5 Average Remaining Lease Term5 (Years) 5.9 5.7 (1) Utilization rate weighted b
Slide 28: AerCap's Platform Capabilities
AerCap’s Platform Capabilities AerCap has executed 468 leases over the past 18 months, approx. 26 each month 355 narrowbody aircraft leases ~57% extensions 1 113 widebody aircraft leases ~66% extensions 1 (1) Extension rate on existing leases.
Slide 29: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio as of December 31, 2015 Aircraft Type Number of Owned Aircraft 1 % Net Book Value Number of Managed & AerDragon Aircraft Aircraft on Order 2 Total Aircraft Airbus A319 137 7 11 - 148 Airbus A320 231 15 32 - 263 Airbus A320neo Family - - - 209 209 Airbus A3
Slide 30: AerCap contact details
AerCap La Touche House IFSC Dublin 1, Ireland +353 1 819 2010 contact@aercap.com
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