2017 Investor Day AerCap Holdings N.V - cloudfront.net

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2017 Investor Day AerCap Holdings N.V - cloudfront.net
2017 Investor Day
AerCap Holdings N.V.   November 13, 2017
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Disclaimer Incl. Forward Looking Statements & Safe Harbor
This presentation contains certain statements, estimates and forecasts with          not rely upon forward-looking statements as a prediction of actual results and
respect to future performance and events. These statements, estimates and            we do not assume any responsibility for the accuracy or completeness of any
forecasts are “forward-looking statements”. In some cases, forward-looking           of these forward-looking statements. Except as required by applicable law, we
statements can be identified by the use of forward-looking terminology such as       do not undertake any obligation to, and will not, update any forward-looking
“may,” “might,” “should,” “expect,” “plan,” “intend,” “estimate,” “anticipate,”      statements, whether as a result of new information, future events or otherwise.
“believe,” “predict,” “potential” or “continue” or the negatives thereof or
                                                                                     No warranty or representation is given concerning such information, which
variations thereon or similar terminology. All statements other than statements
                                                                                     must not be taken as establishing any contractual or other commitment
of historical fact included in this presentation are forward-looking statements
                                                                                     binding upon AerCap Holdings N.V. or any of its subsidiaries or associated
and are based on various underlying assumptions and expectations and are
                                                                                     companies.
subject to known and unknown risks, uncertainties and assumptions and may
include projections of our future financial performance based on our growth          In addition to presenting financial results in conformity with U.S. generally
strategies and anticipated trends in our business. These statements are only         accepted accounting principles (“GAAP“), this presentation includes certain
predictions based on our current expectations and projections about future           non-GAAP financial measures. Reconciliations of such non-GAAP financial
events. There are important factors that could cause our actual results, level of    measures are set forth or referred to in the presentation where relevant. Non-
activity, performance or achievements to differ materially from the results, level   GAAP financial measures should be considered in addition to, not as a
of activity, performance or achievements expressed or implied in the forward-        substitute for or superior to, financial measures determined in conformity with
looking statements. As a result, we cannot assure you that the forward-looking       GAAP.
statements included in this presentation will prove to be accurate or correct. In
light of these risks, uncertainties and assumptions, the future performance or       Due to rounding, numbers presented throughout this document may not add
events described in the forward-looking statements in this presentation might        up precisely to the totals provided and percentages may not precisely reflect
not occur. Accordingly, you should                                                   the absolute figures.

                                                                                 324
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Agenda

  |   Introduction          Brian Canniffe
                            Head of Investor Relations

  |   AerCap Update         Aengus Kelly
                            Chief Executive Officer

  |   Leasing               Philip Scruggs
                            President & Chief Commercial Officer

                      334
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Agenda

  |   Portfolio Management            Edward O’Byrne
                                      Chief Investment Officer

  |   Financial Performance           Peter Juhas
                                      Chief Financial Officer

  |   Q&A and Closing Remarks

                                344
2017 Investor Day AerCap Holdings N.V - cloudfront.net
AerCap Update         Aengus Kelly
                Chief Executive Officer
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Key Highlights Since Last Investor Day
                                  AerCap continued to perform strongly over the past 12 months…

       Significant Level of Aircraft Transactions
        • Executed 418 transactions: leased 240, purchased 52, and sold and parted-out 126 aircraft1 2

       Strong Marketing Activity
        • Leased 100% of new aircraft deliveries through 2018 and 91% through 20193

       Exceeded Sales Target
        • $2.5 billion of sales revenue1

       Strong Liquidity
        • $8.9 billion available liquidity including $1.5 billion cash3

       Strong Earnings & Cash Flow
        • Generated $1.2 billion of net income1
(1)   In the twelve months to September 30, 2017.
(2)   Includes owned and managed aircraft.
(3)   As of September 30, 2017.

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2017 Investor Day AerCap Holdings N.V - cloudfront.net
Key Highlights Since Last Investor Day
                                                            …and achieved several key milestones

             New Order for 30 Boeing 787-9s
              • Making AerCap the largest customer for the 787 Dreamliner

             Investment Grade Credit Ratings
              • Only independent lessor with Investment Grade ratings from Moody’s, Fitch, and S&P

             10 Year Unsecured Bond
              • Raised $1 billion at 3.65% coupon

             Share Repurchases
              • Over $1 billion capital returned to shareholders in the last 12 months; $2.6 billion cumulatively to date1

             Continued Book Value Per Share Growth
              • 17% growth from $46.91 to current value of $55.06 per share2
(1)   Last 12 months ends September 30, 2017. Cumulative to date is since the start of share repurchase program in June 2015 through October 27, 2017.
(2)   As of September 30, 2017.

                                                                                                374
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Industry Overview
                                                                            Stable Demand

                       U.S. Profitability Peaked?                            Stable Demand                    Facilitate Portfolio Sales

                       European Rationalization

        Travel                      Airline                Competitive                              OEM             Managed                Capital
                                                                              Widebodies
        Growth                      Health                 Landscape                             Production         Platforms              Markets

                                                      Larger Platforms in Hands               Rational Duopoly                       Attracted by Stable
                                                        of Experienced Teams                                                               Returns

7.7% Growth in 20171                                  SLB Returns Compressed                 Supply Chain Issues                           Supportive

(1)   IATA Passenger Analysis as of September 2017.

                                                                                  384
2017 Investor Day AerCap Holdings N.V - cloudfront.net
The Importance of Scale

                             937
                           LEASED
                                                                                                          Market
                                                                                                       Intelligence

             340                                                                      Information
              SOLD
                                                                                       Advantage

                                                                                                        Value vs.
                                                                                                          Price

                            137
                           BOUGHT

Number of transactions from July 1, 2014 to September 30, 2017. Includes owned and managed aircraft.

                                                                                               394
2017 Investor Day AerCap Holdings N.V - cloudfront.net
Optimal Decision-Making

                                        LEASING
                                        DECISION

   Market
Intelligence

                          Information          SALES
                           Advantage          DECISION

  Value vs.
    Price

                                        BUYING
                                        DECISION

                             3 10 4
AerCap’s Business Principles
                  Our key business principles result in AerCap’s consistent profitability

       PORTFOLIO                 LEASING STRATEGY                                                HEDGING PROGRAM
      MANAGEMENT                                                   CAPITAL STRUCTURE

 • Focus on maintaining        • Proactive risk                   • Focus on highly            • Protection against
   the most liquid aircraft      management                         diversified, long-term       interest rate volatility
   types through aircraft      • Highly diversified                 funding and long-term        through a mix of
   acquisitions and              customer base                      assets                       interest rate caps,
   disposals                                                      • Investment Grade             swaps and fixed-rate
                               • Security deposits and                                           loans
 • Assets owned in               maintenance                        ratings
   appropriate tax               reserves                         • Relationships with over
   jurisdictions                                                    100 banking institutions
                                                                    globally

                                                   CONSISTENT
                                                  PROFITABILITY

                                                         3 11 4
Consistent Earnings & Cash Flow Generation
                     AerCap’s platform has generated strong and consistent results

                                     US GAAP Net Income (~$2.1 billion)

($ million)
     400

     350

     300
                                          AVERAGE: ~$265 MILLION PER QUARTER
     250

     200
                                                                  365
     150
              264                                                                283    266
                                                                           261
                         223        233            226
     100

       50

         0
              4Q15       1Q16      2Q16           3Q16            4Q16    1Q17   2Q17   3Q17

                                                         3 12 4
Book Value Per Share Growth
              AerCap has grown book value per share by ~16% per year since 3Q 2014

                                                                                                 $55
 $55
                                                                                         $53
                                                                                 $51

 $50                                                                     $49

                                                                  $47
                                                           $45
 $45                                               $44
                                           $42
                                    $41
 $40                         $39
                      $39
               $37
       $36
 $35

 $30
       3Q14    4Q14   1Q15   2Q15   3Q15   4Q15    1Q16    2Q16   3Q16   4Q'16   1Q'17   2Q'17   3Q'17

                                                  3 13 4
Conclusions

              Strong Demand for Aircraft Due to High Travel Growth

              Scale is a Competitive Advantage

              Positive Outlook for AerCap

                  3 14 4
Leasing                     Philip Scruggs
          President & Chief Commercial Officer
Growing Industry
                      AIR TRAFFIC IS
                   A GROWING MARKET

               Since 1986, air traffic has
               doubled every 15 years,
             growth forecast to continue1
                                                            MIDDLE CLASS IS
                                                          GROWING AND FLYING

                                                            Middle class to grow
                                                             from 2.9 billion to
                                                          4.9 billion in 20 years2
                  AIRLINES NEED OVER
                  41,030 NEW AIRCRAFT

              Boeing has increased 20-year
                forecast by 1,410 aircraft;
                 China’s estimate alone
              increased by 6% since 20161                 INCREASING DEMAND
                                                         FOR OPERATING LEASES

                                                        Over the past 20 years, the
                                                       world fleet has doubled with the
                                                         leased fleet quadrupling3
See Appendix for Endnotes.

                                              3 16 4
Strong 2017 Traffic Figures

                                                      TRAFFIC
                                        +7.7%         GROWTH    81.7%
                                           GLOBAL    AND LOAD   GLOBAL LOAD
                                           TRAFFIC   FACTORS      FACTOR

  +7.0%                                                                               83.0%
    Worldwide                                                                         Worldwide
    Domestic                                                                          Domestic

                               +8.0%                                  81.0%
                                Worldwide                              Worldwide
                               International                          International

IATA Passenger Analysis as of September 2017.

                                                       3 17 4
Global Demand Movement from 2012

    High

    Low

                                                               2017
IATA: Passenger Traffic Growth (RPK) %, 2012-2017F.

                                                      3 18 4
Aircraft Placement Remains Strong
        The placement of our upcoming scheduled expiries and new aircraft deliveries is on track

                  Used Aircraft Required Placements1                                                                             Order Book Required Placements2

                                                                                85

                                                   33                                                                                                                              18
                      0                                                                                                         0                               0
             Remaining 2017                       2018                          2019                                   Remaining 2017                         2018                 2019

                           AERCAP HAS EXECUTED 240 LEASE TRANSACTIONS OVER THE PAST 12 MONTHS 3
(1)   Required placements for owned fleet. Excludes aircraft leased either under a lease or letter of intent and aircraft identified as sale or part-out as of November 7, 2017.
(2)   Required placements for aircraft on order. Excludes aircraft leased either under a lease or letter of intent as of November 7, 2017.
(3)   Includes owned and managed aircraft, as of September 30, 2017.

                                                                                                      3 19 4
Vision, Reach & Scale – The AerCap Advantage
                       Lessor scale enables fleet-wide solutions

        Air Berlin                        Monarch                       Loong Air
     10 x Widebodies                 9 x Narrowbodies              20 x Narrowbodies

                                         3 20 4
AerCap’s 787 Vision

                         Timing, vision and product will make this order successful

    This aircraft will      We know the         30 787-9                 Makes AerCap      We have       We are already
     be an integral           size and       aircraft – first             the largest   already placed   placing aircraft
      part of many         location of the     widebody                  customer for     97% of our      from our new
   airlines mid-sized       787 demand        order since                   the 787     previous 787s         order
     widebody fleet                               2007                    Dreamliner

                                                                3 21 4
AerCap Understands Widebody Aircraft
                       AerCap leased, purchased and sold 395 widebody aircraft since July 20141

                                                                     395 WIDEBODY TRANSACTIONS

                                      230                                                       64           101
                                     LEASED                                            PURCHASED             SOLD

(1)   Number of transactions from July 1, 2014 to September 30, 2017. Includes owned and managed aircraft.

                                                                                               3 22 4
Widebody Aircraft – What Drives Demand

           Long-Haul
       Operations by LCCs

          Growing Demand for
           Long-Haul Travel

        Connecting New Destinations

                                      3 23 4
777 Aircraft Continue to Be Placed
                               Placement status of Boeing 777s

                                                                         28
                              View as of:                                       12
                                                                   12
                                            1
                             YE 2014                 1        4
                                                 2015    2016     2017   2018   2019

                                                                          17
                              View as of:                                       10
                                            2                      5
                             YE 2015                 -     1
               51 777s                           2015    2016     2017   2018   2019

           LEASED OR SOLD
            SINCE YE 20144    View as of:                                 8      9
                                            3        -              1
                             YE 2016                          -
                                                 2015    2016     2017   2018   2019

                              View as of:
                                                 -        -        -       -     6
                               Now4
                                                2015     2016     2017   2018   2019

See Appendix for Endnotes.

                                                3 24 4
Clear Visibility of Top Line Revenue
                                                    Revenue for the next 3 years already contracted

              Contracted revenues through 2020                                          Contracted revenues as a % of expected total rental revenue
              Assumed

                                     ~5%                                                  ~99%
                                                                                                               ~96%
                                                                                                                                     ~86%

                                                        ~95%

                                                                                           2018                  2019                  2020

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                               3 25 4
Our Planes Are Consistently Flying and Earning Revenue

                                99.5%
                                UTILIZATION RATE

YTD as of September 30, 2017.

                                      3 26 4
Conclusions

              Strong Demand for Aircraft

              Scale is a Competitive Advantage

              Clear Visibility of Future Revenue

                  3 27 4
Edward O’Byrne
Portfolio Management   Chief Investment Officer
Portfolio Management
           Discipline enables sustainable superior returns for our leasing portfolio

            GOALS                          ACTIONS                          RESULTS

 • Maintain the Most               • Disciplined Investment         • 99+ % Portfolio
   Liquid Portfolio of               / Divestment Policy              Utilization
   In-Demand Assets
                                   • Prudent Depreciation           • Consistently Profitable,
 • Balance Yield &                   Policy                           Average Margin of 5 –
   Manage Residual Value                                              10%
                                   • World’s Most Active
 • Generate Minimum of               Mid-Life Aircraft              • ~$2.5 Billion of Sales in
   $1 Billion in Annual              Trader                           the last 12 months
   Liquidity

                                            3 29 4
Portfolio Transformation

2014                                                     2017                                           2021
                                    Our portfolio will grow by over 25% from today, new
                                technology will represent over two-thirds of our fleet by 2021
  ~$36B                                                                                                 ~$43B
   VALUE                                                                                                 VALUE
                                                          New Tech. (Potential SLBs)
    7.6                                                                                                   ~6
 AVG. AGE                                                                                               AVG. AGE

                                                                                  New Tech.
                       Current Technology WB                                      Actual & Contracted
                                                   1
                       & Out-of-Production Aircraft

                       737NG

                       A320 Family

See Appendix for Endnotes.

                                                            3 30 4
Attractive Order Book of Liquid Aircraft
                                      AerCap is well-positioned to meet future demand

                                              ($ billion)                      CAPITAL EXPENDITURE

                                                 6.0
                            A320neo Family

                                                 5.0

                                     A350
                                                 4.0

                                   E-Jet E2
 ORDERBOOK                                       3.0                        $6.0
   MAKEUP                                                                               $5.5         $5.5
                                   737 MAX
                                                            $5.0
                                                                                                            $4.5
                                                 2.0

                                    787          1.0

                                                 0.0
                                                            2017            2018        2019         2020   2021

As of September 30, 2017.

                                                                   3 31 4
Trading Depth, Scale & Diversification
                                     Over a decade of proactive trading

                                                                              End of Life, 2%
                                                               Airline, 11%
              63%           17%

                                     6%                                                         Lessor, 30%

                                                                              $12B+
              NORTH         EUROPE
             AMERICA
                                                 14%
                                     MIDDLE
                                                                        OWNED AIRCRAFT
                                     EAST &                             SOLD SINCE 2006
                                     OTHER
                                                  ASIA
                                                 PACIFIC
                                                                               500+
                                                                              AIRCRAFT

                                                              Financial
                                                            Investor, 57%

As of September 30, 2017.

                                                   3 32 4
Aircraft Trading Results
                                    Last 12 months’ trading activity remains above targets

                               109                       $2.5B                        15
                                                                                      years
                                Owned                       Sales                   Average Age
                             Aircraft Sold2    37%        Proceeds1      63%         of Aircraft
                                                                                        Sold2
                                              Widebody                 Narrowbody

                                              FOCUS ON MID-LIFE AIRCRAFT TO
                                               IMPROVE OVERALL QUALITY OF
                                                OUR PORTFOLIO & EARNINGS

See Appendix for Endnotes.

                                                            3 33 4
The Business Case for Aircraft Investments
                                          Investment rationale is different across investor spectrum

        % OF AER SALES1                     INVESTOR SEGMENT                                RATIONALE                 STRONG INDUSTRY FUNDAMENTALS

                                         • Far East / High Growth
                                                                               • Strategic Growth / Scale Up
          7%             0–8               Lessors
                                                                               • Stable Long-Term Contracted     • Proven long-term resilient growth market
                         YEARS           • Established Lessors
                                                                                 Cash Flows
                                         • Retail Products                                                       • Big-ticket infrastructure like deals

                                         • Institutional Investors             • Stable Medium-Term Contracted
                                                                                                                 • Long lived assets match long-term
                         8 – 15              • Insurance                         Cash Flows                        liabilities
         55%                                 • Pension Funds                   • Strong Current Yield
                         YEARS
                                         • Established Lessors                 • Low Volatility Returns          • Uncorrelated to traditional asset classes

                                                                                                                 • Build-to-fly: Rational supply by OEMs
                                         • Hedge Fund High Yield
         34%           15 – 20             Desks
                                                                                • High Yield Bond Equivalent     • High current income
                         YEARS                                                    Transaction
                                         • Specialized Lessors
                                                                                                                 • High asset utilization underpinned by
                                                                                                                   long-term leases and low portfolio churn
                                         • Airline Purchases at                 • Airline’s Spare Aircraft
                          20+                                                                                    • Low aircraft value volatility – a fraction of
          4%                               Lease End                            • High Yielding All Equity
                         YEARS           • Part-Out                               Transactions                     shipping volatility

(1)   In the twelve months to September 30, 2017. Includes finance and sales-type leases.

                                                                                                3 34 4
Key Investment Themes
Are Supply & Demand Balanced?

                                             White
                             OEMs            Tails
                                                                                   Deliveries                              Cancellations

                                                                               2016 Deliveries Stable                            Very Limited
                                          No White Tails                                         1
                                                                                   at ~8% Fleet                                  Cancellations

                                           Stored                                  Secondary                                 Forward
                             LESSORS       Aircraft                                 Market                                  Placements
                                        ~6% in 2016, Lowest                        99.5% Utilization                         91% of AerCap
                                                                                                                           Forward Orderbook
                                          Rate Since 20001                         Rate for AerCap2                       Leased through 20192

                                                                  Load
                             AIRLINES                            Factors                                 Profitability

                                                              Global Load Factor                         Airline Net Profits
                                                                   81.7%3                              $100B+ in Last 3 Years4

See Appendix for Endnotes.

                                                              3 36 4
High Productivity Gains … Maxed Out?
                  Aircraft productivity has reached optimum levels and thus will be difficult to improve further;
                         This will lead to a tighter correlation between traffic growth and aircraft demand

             2004
         A330-200                                         10.4                         188                 73.5%
                                                          Hours/day                    PAX/flight          Load factor

          Present
         A330-200                                         11.5                         206                 80.3%
                                                          Hours/day                    PAX/flight          Load factor

                                                                      YEARLY RPK PER
                                                                         AIRCRAFT

                               1                      Present = 1.2x                     1          2004
Source: FlightGlobal Fleets Analyzer, Boeing, IATA.

                                                                       3 37 4
Traffic Growth Continues to Exceed OEM Production
      Elevated traffic growth and diminishing efficiency gains are driving aircraft demand; While the delivery rate
            remains stable, fleet growth is resulting in higher demand for used aircraft and low retirement

      10%

                  8.0%
      8%
                                                                                                                                   7.4%      Traffic Growth Rate

      6%                                                                                                                           5.9%      Net Fleet Increase
                   4.2%
      4%
                                                                                                                                   3.4%   Average Retirement Rate1
                                                                                                    RETIREMENT RATE BELOW
                                                                                                      HISTORICAL AVERAGE
      2%                                                                                                                           2.1%     Retirement Rate 2016

      0%
                    2010                 2011                  2012                  2013            2014           2015    2016

                                                Net Fleet Increase                                   IATA RPK Growth Rate

(1)   Average Retirement Rate 2007-2016.
      Source: FlightGlobal Fleets Analyzer: Airbus, Boeing, McDonnell-Douglas passenger jets.

                                                                                                3 38 4
Conclusions

              Balanced Supply and Demand for Aircraft

              Disciplined Portfolio Transformation Strategy

              Scale is a Competitive Advantage

                  3 39 4
Financial Performance          Peter Juhas
                        Chief Financial Officer
Financial Summary

               STRONG EARNINGS                        RAISED ~$11 BILLION
                AND CASH FLOW                            OF FINANCING

                                    2017 is another
 $1.7+ BILLION AIRCRAFT              year of strong           RETURNED ~$900 MILLION TO
                                                               SHAREHOLDERS THROUGH
        SALES YTD                    operating and               SHARE REPURCHASES
                                        financial
                                      performance

              INVESTMENT GRADE
                RATINGS FROM                          DOUBLE DIGIT BVPS
              MOODY’S, FITCH, AND                         GROWTH
                     S&P

                                         3 41 4
Improved Debt / Equity Ratio
                                                AerCap has significantly de-levered since July 2014

                                                                          Adjusted Debt / Equity Ratio1
              3.8x

                           3.5x
                                         3.4x                                                          S&P                 Fitch               Moody’s
                                                                   3.3x                         Upgrade to BBB-     Upgrade to BBB-         Upgrade to Baa3
                                                    3.2x
                                                                                3.1x

         3.0x

                                                                                              2.9x
         2.7x                                                                                              2.8x     2.8x
                                                                                                                                   2.7x                                   2.7x
                                                                                                                                           2.7x      2.7x       2.7x

           Jun-2014     Sep-2014      Dec-2014 Mar-2015          Jun-2015     Sep-2015     Dec-2015      Mar-2016   Jun-2016   Sep-2016   Dec-2016 Mar-2017   Jun-2017   Sep-2017

See Appendix for Endnotes and a reconciliation of Adjusted Debt / Equity Ratio to the comparable GAAP measure.

                                                                                               3 42 4
Excess Capital Deployment
                              We have continued to deploy excess capital for share repurchases

                                                                   $53.06   $55.06
                                                         $51.20
                                                $49.33
                                      $46.91
                             $45.26
                 $43.66                                                     $49.26        • In 2016, we repurchased 25 million shares
                                                         $44.73    $45.04                   at an average price of $38.62 for a total of
                                                $42.43
                                                                                            $966 million
                             $38.03   $37.73
                 $36.49                                                                         • Average discount to book value of 16%
                              $293                        $293      $293
                                                                             $266
                                      $234      $241
                                                                                          • In 2017, we have purchased 19.2 million
                  $198
                                                                                            shares at an average price of $46.37, for a
                                                                                            total of $888 million1
                                                                                                • Average discount to book value of 13%

                  1Q16        2Q16    3Q16      4Q16      1Q17      2Q17     3Q17

                      Share Repurchases ($mm)          BVPS       Avg Repurchase Price

(1)   Through October 27, 2017.

                                                                                 3 43 4
Track Record of Returning Capital to Shareholders
                    Returned more capital to our shareholders than 96% of S&P 500 companies1

                  Shares Repurchased since June 2015 2
                  Remaining AerCap Shares

                                                                        28%

                                                         72%

See Appendix for Endnotes.

                                                               3 44 4
Conservative Approach to Liquidity & Funding

                                                                                                    Target: ≥ 1.2x NTM sources-to-uses coverage
                                                                          Liquidity                 • 1.3x NTM sources-to-uses
                                                                                                    • $8.9 billion of available liquidity

                                                                                                    Target: Diverse sources of funding
                                                                          Access
                                                                                                    • ~$36 billion of funding raised since the ILFC transaction
                                                                         to Capital
                                                                                                       announcement
            AerCap is
          committed to
           maintaining                                                                              Target: ≤ 30% secured debt to total assets
                                                                          Debt Mix
                                                                                                    • ~29% secured debt to total assets
             a strong
          balance sheet
                                                                                                     Target: Range of 2.7-3.0 to 1 debt-to-equity ratio
                                                                          Leverage
                                                                                                     • 2.7 to 1 debt-to-equity ratio

                                                                                                    Target: Fully hedged
                                                                          Interest
                                                                                                    • Interest rate risk fully hedged through interest rate caps,
                                                                         Rate Risk
                                                                                                       swaps and natural hedges

As of September 30, 2017. See Appendix for a reconciliation of Adjusted Debt / Equity Ratio to the comparable GAAP measure.

                                                                                               3 45 4
Strong Liquidity Position
                                          $8.9 billion of available liquidity as of September 30, 2017

                  Sources vs. Uses (Next 12 Months)                                                                           Liquidity Levels Since July 2014
                                                                                                       ($ billion)
                                                                                                        10.5                                                         10.0                                  3.0x

        Sources (for 12 months to September 30, 2018)                ($ billion)                                                                                                  9.5 9.5
                                                                                                                                                       9.2 9.1              9.0              9.0 8.9
                                                                                                                                                                                                           2.8x

        Unsecured Revolver                                                             3.9                 9.0                                                                                             2.6x

        Other Facilities and Contracted Sales                                          3.5                                                                                                                 2.4x

        Unrestricted Cash                                                              1.5                                 7.3 7.2                                                                         2.2x

                                                                                                           7.5
        Total Available Liquidity                                                      8.9                           6.6                 6.6 6.4                                                           2.0x

        Estimated Operating Cash Flow                                                  3.2                                        1.7x                                                1.6x
                                                                                                                                                       1.6x
                                                                                                                                                                                                           1.8x

                                                                                                           6.0             1.6x
                                                                                                                 1.5x                                                1.5x 1.5x 1.5x          1.5x
        Total Sources1                                                                12.1                                                                                                                 1.6x

                                                                                                                                         1.3x                                                       1.3x
                                                                                                                                                1.2x          1.2x                                         1.4x

                                                                                                           4.5                                                                                             1.2x

        Uses (for 12 months to September 30, 2018)
                                                                                                                                                          1.2x Target                                      1.0x

        Debt Maturities                                                               (3.1)
                                                                                                           3.0                                                                                             0.8x

        Capex (Cash payments for purchases)2                                          (6.0)
                                                                                                                                                                                                           0.6x

        Total Uses                                                                    (9.1)
                                                                                                           1.5                                                                                             0.4x

                                                                                                                                                                                                           0.2x

        Excess Coverage (Sources less Uses)                                            3.0                 0.0                                                                                             0.0x

        Ratio of Sources to Uses                                                      1.3x

                                                                                                                                         Available Liquidity            Ratio of Sources to Uses

(1)   Sources assume no additional financing for deliveries of new aircraft purchases.
(2)   Includes cash payments for next 12 months’ aircraft deliveries and pre-delivery payments.

                                                                                                  3 46 4
Global Funding Partners
                         Over 100 bank relationships and over 450 fixed income investors

                                                                                                            Asia Pacific
        North America                                                               Aozora Bank          First Abu Dhabi Bank       The Nomura Trust and
                                                                                The Bank of East Asia                                    Banking Co.
                                                                                                        Fuyo General Lease Co.
       AIG              MetLife                                                                                                         NTT Finance
                                                                                 Bank of Kaohsiung          The Gunma Bank
   Apple Bank       Morgan Stanley                                                                                                  Samsung Life Insurance
                                                                                   Bank of Taiwan
Bank of America      New York Life                      Europe                                            The Hachijuni Bank
                                                                                                                                    Shanghai Commercial &
                       Principal                                                    Bank SinoPac             The Higo Bank              Savings Bank
     Barings
       Citi              RBC                                                     Cathay United Bank       Hua Nan Commercial         Shinkin Central Bank
                                            ABN Amro         Deutsche Bank                                       Bank
 Citizens Bank       Regions Bank                                                       CBA                                           The Shizuoka Bank
                                           Airbus Bank             DVB                                     The Hyakugo Bank
    Everbank            Scotia                                                           CDB                                                SMBC
                                         Allied Irish Bank   European ECAs                                       ICBC
Fifth Third Bank       SunTrust                                                   Chailease Finance                                         SMTB
Goldman Sachs      Toronto Dominion            AKA                Helaba             (B.V.I) Co.        Industrial Bank of Korea      State Bank of India
   JP Morgan           US Ex-Im              Barclays              HSBC           Chang Hwa Bank
                                                                                                        Industrial Bank of Taiwan   Taichung Commercial
    Key Corp          Wells Fargo              BLB                 ING          China Merchants Bank                                         Bank
                                           BNP Paribas             KFW                                        The Iyo Bank
                                                                                   The Chiba Bank                                     Taipei Fubon Bank
                                         Bank of Ireland          Natixis                                    The Joyo Bank
                                                                                 The Chugoku Bank                                    Taishin International
                                               CIC                Nord LB                                   KEB Hana Bank                    Bank
                                                                                        CCB
                                          Commerzbank            Rabobank                                    KGI Bank               Taiwan Business Bank
                                                                                      CTBC Bank
                                                                                                                                     Taiwan Cooperative
                                         Credit Agricole           RBS           Development Bank of Korea Development Bank
                                                                                                                                             Bank
                                                                                         Japan         Land Bank of Taiwan
                                          Credit Suisse          Santander                                                            Taiwan Shin Kong
                                                                                       DBS Bank             Mega ICBC                 Commercial Bank
                                            Dekabank              Siemens
                                                                                  E.SUN Commercial            Mizuho                 The Tokyo Star Bank
                                                             Société Générale            Bank
                                                                                                               MUFG                  Yuanta Commercial
                                                                                  Ex-Im Bank of ROC                                          Bank
Recent additions to lender group                                                First Commercial Bank National Australia Bank             Woori Bank
                                                                                       of Taiwan

                                                                 3 47 4
AerCap’s Hedging Program
              AerCap’s hedging program protects the company against increases in interest rates

                                  FORMS OF HEDGING1
                                                                                        We continuously monitor our
                                                                                          interest rate exposure to
                                                        CASH, FLOATING
                                          13%           RATE LEASES & OTHER            ensure we remain fully hedged
                                                        INTEREST RATE
                                                        CAPS & SWAPS
                                          19%

                                                                                               A 100 bps increase in
                                                        FIXED RATE DEBT                    interest rates would increase
                                                                                            our annual interest expense
                                                                                                  by ~$25 million
                                          68%

                                                                                          Primarily driven by the
                                                                                        difference between current
                                                                                       rates and strike rates of caps
                                    Total Debt: ~$27B

(1)   As of September 30, 2017.

                                                                              3 48 4
AerCap’s Prudent Aircraft Values
                                                              Disciplined approach to carrying values

                   AIRCRAFT VALUE                                   CONSERVATIVE DEPRECIATION
                                                                                                             GAIN ON SALE
                                                                           APPROACH

       • Focused on buying                                           • We perform detailed              • Average gain on sale of
         aircraft at the right                                         reviews of depreciation            5 – 10%
         price                                                         schedules by aircraft
                                                                       each year
       • ~75% of aircraft fair
         valued in June 20141                                        • Overall depreciation rate
                                                                       of over 6%2, versus ~5%
                                                                       implied by industry
                                                                       standard curve

                          The volume of our transactions provides us with a unique insight into aircraft values
(1) Percentage of net book value as of September 30, 2017.
(2) Depreciation rate, including maintenance rights amortization.

                                                                               3 49 4
Financial Outlook
On Track for a Strong Full Year 2017
                                                      Expected full year 2017 financial performance

                           ~$5.0                                        ~$1.2                      ~$1.0       ~$6.20
                              billion                                          billion              billion

                           TOTAL                                   GAAP PRE-TAX                      GAAP         GAAP
                          REVENUE                                    EARNINGS                     NET INCOME   DILUTED EPS

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                                         3 51 4
Highly Predictable Revenue
                                                            Revenue line booked well into the future

                                                                                                         ~95% of our lease
                                                                                                       rents through 2020 are
                                                                                                         already contracted

                ~99%                             ~96%                                                      Average remaining lease
                                                                               ~86%                           term of 6.6 years

                                                                                                   Provides significant visibility
                 2018                               2019                       2020                 and stability to our future
                                       Contracted              Assumed                               revenues and cash flows

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                                      3 52 4
Key Drivers
                                        Younger aircraft portfolio while maintaining strong margins

                                                                                         2017E      2018E                2019E

          Weighted Average Age1                                                          ~6.9        ~6.4               ~6.2

          Yield2                                                                        ~12.2%     ~11.6%             ~11.2%
          Average Interest Rate3 (including debt issuance costs & fees)                 ~4.0%       ~4.0%              ~4.0%

          Net Spread                                                                    ~9.0%       ~8.5%              ~8.1%

          Depreciation Rate (including maintenance rights amortization)                 ~6.1%       ~5.5%              ~5.1%

          Net Spread Less Depreciation4                                                 ~2.9%       ~3.0%              ~3.0%

          • Weighted average age of portfolio will decrease as we take delivery of new aircraft, resulting in both a
            lower yield and a lower depreciation rate
                 •     Increasing level of new technology aircraft reduces average age and overall risk in aircraft portfolio

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.
See Appendix for Endnotes.

                                                                               3 53 4
Excess Capital Generation
                                         AerCap will continue to generate significant excess capital

        ($ billion)                                             2018E          2019E
                                                                                                • We expect to generate a total of $1.0+
        Contracted purchases                                       ~6.0         ~5.5              billion of excess capital during 2018 and
                                                                                                  2019 after contracted purchases
        Expected sales                                             ~1.5         ~1.0
                                                                                                  •   This assumes ~$1.5 billion of asset
        Expected excess capital                                                                       sales in 2018 and ~$1.0 billion in 2019
        remaining after contracted                                 ~0.7         ~0.3
        purchases

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                                       3 54 4
EPS Outlook
                                                                      Core EPS will continue to grow

                                GAAP DILUTED EPS OUTLOOK
                                                                                                        • 2017 Earnings on Track:
                         ~$6.20                                                     TBD                    • Core EPS of ~$5.05 and total EPS of
                                                        TBD
                                                                                                             ~$6.20
                         ~$1.15
                                                                                                        • 2018 Core EPS:
                                                                                                           • Up ~5% over 2017, primarily driven by
                                                                                                             redeployment of excess capital
                                                                                  ~$6.00 -
                                                     ~$5.30 -                      $6.20
                         ~$5.05                       $5.50                                             • 2019 Core EPS:
                                                                                                           • Up ~10% over 2018, primarily driven by
                                                                                                             asset growth

                          2017E                        2018E                        2019E
                                      Core EPS         Gain on Sales and Non-recurring Items

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                                               3 55 4
Financial Summary
                                                                          Positive outlook for AerCap

                BOOK VALUE PER SHARE TRAJECTORY
                                                                                                            STRONG
                                                                                                        PERFORMANCE IN
                                                                                                              2017

                                                    ~$57
                                        $49                                                                  PRUDENT
                           $42
              $37
                                                                                                          BALANCE SHEET

                                                                                                          ATTRACTIVE
                                                                                                        GROWTH OUTLOOK
             2014A        2015A        2016A       2017E        2018E          2019E   2020E               FOR BVPS

Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.

                                                                                               3 56 4
Closing Remarks

                  LEVERAGING SCALE

                  INVESTMENT DISCIPLINE

                  RELENTLESS EXECUTION

                  CONSISTENT PROFITABILITY

                  VALUE CREATION

                      3 57 4
Q&A
Appendix
Strong Growth Over the Long Term
                                            Airlines need 41,030 new aircraft over the next 20 years

                     Boeing Has Increased its Forecast from the 2016 Current Market Outlook by 1,410 Aircraft1

                         Growth
                                                                                                             North
                                                              46,950                                        America
                         Replacement
                                                                                                             21%
                         Stay in-service

                                                               23,470                                                 Latin
                                                                                          Asia                       America
                                                                                         Pacific                       8%
                                                                           41,030         38%
                               23,480
                                                                        NEW AIRCRAFT

                                                                                                                 Middle
                                                               17,560
                                                                                                                  East
                               23,480                                                                             8%
                                                                                                                Africa
                                                                5,920                                            3%

                                                                                                   Europe   C.I.S.
                                  2016                          2036
                                                                                                    19%      3%

(1)   Boeing Current Market Outlook 2017, includes regional jets.

                                                                           3 60 4
Air Travel Growth
                                             Resilient, growing air travel market expected to continue

                                            World Annual Traffic1                                                                   Robust Global Traffic

                                                                    Oil, Financial,              Expected
         Oil                      Gulf        Asian        9/11     & Euro crises               growth p.a.
        crisis                   crisis       crisis     & SARS    & Russia, Ebola             through 2036
                                                                                                                             • Air traffic doubles every
                                                                                                                               15 years1
                                                                                                  4.4%
                                                                                                                             • 2017 world traffic has grown
                                                                                                                               by 7.7% to date2

                                                                                                                             • 2017 total passenger
                                                                  x2                                x2                         expected to be 4.1 billion, up
                                                                                                                               from 3.8 billion in 20163
                                     x2

      1976       1981   1986     1991      1996        2001   2006      2011      2016     2021      2026     2031    2036

(1)     Airbus Global Market Forecast 2017, RPK: Revenue-Passenger-Kilometers.
(2)     IATA Passenger Analysis as of September 2017.
(3)     IATA June 2017 Forecast – Actual or estimate for 2016 and forecast for 2017 for global commercial airlines.

                                                                                                     3 61 4
Middle Class Is Growing and Flying
                                      Middle class to grow from 2.9 billion to 4.9 billion in 20 years

                                                                      Middle Class (millions of people)1
                                                                                         History              Forecast
                              5,000                                                                                          4,950

                              4,000                                                                           3,900

                                                                                                                             3,624   Emerging Countries
                              3,000                                                     2,900
                                                                                                               2,695

                              2,000                                1,950                 1,822

                                             1,350                  981
                                                  501                                                                         456    Developing Countries
                              1,000                                                       216                   322
                                            73                      144

                                                 781                828                   850                   865           859    Mature Countries

                                  0
                                             1996e2                 2006                  2016                 2026           2036

                                                 5.8                 6.6                   7.4                  8.2           8.9    World population (billion)

                                              23%                   30%                   39%                   47%          56%     % of world population

(1)   Oxford Economics, Airbus; Households with yearly income between $20,000 and $150,000 at PPP in constant 2016 prices.
(2)   Estimate split for 1996 by region.

                                                                                                3 62 4
Increasing Demand for Operating Leases
                                               Over the past 20 years the world fleet has DOUBLED
                                               while the operating lease fleet size has QUADRUPLED

                                                                                                                             Leasing Represents a Significant
           Proportion of Global Fleet on Operating Lease1                                                                     Share of Major Airlines’ Fleets2
                                                                                                                  % Leased
      19,000
                                                                                   18,929
                                                                                                                                                     86%     VIRGIN ATLANTIC
      17,000
                  Owned fleet

      15,000
                  Leased fleet                                    14,829                                                                       58%           SPIRIT

      13,000
                                                 12,774                                                                                                      KLM
                                                                                                                                            55%
      11,000                     10,701
                                                                                                                                          51%                AIR FRANCE
       9,000
                9,111

                                                                                                                                      44%                    AMERICAN
       7,000

                                                                                    43%
       5,000                                                                        Leased                                                                   CHINA SOUTHERN
                                                                                                                                   41%
       3,000

                                                                                                                                    41%                      BRITISH AIRWAYS
       1,000     22%

      (1,000)    1997             2002             2007             2012            2017                                 25%                                 CATHAY PACIFIC

(1)     FlightGlobal Fleets Analyzer as of September 30 for each respective year: Airbus, Boeing, McDonnell-Douglas in-service passenger jets.
(2)     FlightGlobal Fleets Analyzer as of September 30, 2017: Leased summary share, Airbus, Boeing, McDonnell-Douglas in-service, passenger jets.

                                                                                                  3 63 4
Investment Grade Ratings
                                        AerCap is the only independent lessor with three IG ratings

                                                                     Standard & Poor’s               BBB-                    Fitch              BBB-              Moody’s      Baa3
       INVESTMENT GRADE RATINGS                                          (STABLE)                       Stable             (STABLE)               Stable         (STABLE)        Stable

                                                                                                              APR. 2016                         JUL. 2016            FEB. 2017
                                                                                   MAR. 2016                  Moody’s upgrades                  Fitch upgrades       Moody’s upgrades
                                                                                   Standard &                 AerCap to Ba1                     AerCap to            AerCap to Baa3
                                                   FEB. 2015                                                                                    BBB-
                                                                                   Poor’s upgrades
                                                   Both Standard &                 AerCap to BBB-
                                                   Poor’s and Moody’s
                 MAY 2014                          place AerCap on
                 Acquisition of ILFC               positive outlook

Note: Three IG ratings refer to AerCap’s Investment Grade rating status with the three main rating agencies: Standard & Poor’s, Fitch Ratings, and Moody’s.

                                                                                                  3 64 4
Adjusted Debt / Equity Ratio

                                  Adjusted Debt/Equity Calculation ($ million)           Sept. 30, 2017

                                  Debt (including fair value adjustments)                       27,288
                                  Adjusted for:
                                   • Unrestricted cash & cash equivalents                       (1,454)
                                   • 50% equity credit for long-term subordinated debt            (750)
                 2.7 to 1
                ADJUSTED          Adjusted Debt                                                 25,084
              DEBT / EQUITY
                 RATIO1           Equity                                                         8,603

                                  Adjusted for:
                                   • 50% equity credit for long-term subordinated debt             750

                                  Adjusted Equity                                                9,353

(1)   As of September 30, 2017.

                                                      3 65 4
Endnotes
 SLIDE 16: Growing Industry                                                            SLIDE 36: Are Supply and Demand Balanced?
  1. Airbus Global Market Forecast 2017-2036; Boeing Current Market Outlook             1. FlightGlobal Fleets Analyzer as of October 27, 2017: Airbus, Boeing,
     2017.                                                                                 McDonnell-Douglas in-service, on order and in-storage passenger jets.
  2. Oxford Economics, Airbus; Yearly household income $20,000-$150,000.                2. Utilization YTD as of September 30, 2017. Placements as of September 30,
  3. FlightGlobal Fleets Analyzer as of September 30 for each respective year:             2017.
     Airbus, Boeing, McDonnell-Douglas in-service passenger jets.                       3. IATA Passenger Analysis as of September 2017.
                                                                                        4. IATA Industry Statistics June 2017 – actual for 2015 and 2016, forecast for
 SLIDE 24: 777 Aircraft Continue to be Placed                                              2017 for system-wide global commercial airlines.
  1. Scheduled expiries as of December 31, 2014.
  2. Required placements as per our 4Q 2015 financial results presentation             SLIDE 42: Improved Debt / Equity Ratio
  3. Required placements as of December 31, 2016.                                       1. Adjusted Debt/equity ratios are calculated by dividing adjusted debt by
  4. Placed aircraft include released, extended, sold or to be parted-out either           adjusted equity. Adjusted debt is calculated as follows: debt less cash and
     under a contract or letter of intent as of October 20, 2017.                          cash equivalents, less 50% equity credit for long-term subordinated debt.
                                                                                           Adjusted equity is calculated as follows: total equity plus 50% equity credit for
                                                                                           long-term subordinated debt.
 SLIDE 30: Portfolio Transformation
  As of June 30, 2014; September 30, 2017; December 31, 2021, respectively. Incl.      SLIDE 44: Track Record of Returning Capital to Shareholders
  maintenance rights intangible & net investment in finance and sales-type leases.
  Refer to slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor.          1. Sourced from CapitalQ; reflects AerCap rank relative to S&P 500 constituents
                                                                                           as of May 4, 2017.
  1. Widebody: 777s, A330s; Out-of-production aircraft: 757s, 767s, 737 classics,
                                                                                        2. As of September 30, 2017.
      CRJ, MD-11, 747s, A340s, A310s.

 SLIDE 33: Aircraft Trading Results                                                    SLIDE 53: Key Drivers
                                                                                        1. Age at year-end.
  1. As of September 30, 2017. Owned aircraft sold including sales and
     reclassifications to finance and sales-type leases.                                2. Basic lease rents divided by average book value of flight equipment, net
  2. As of September 30, 2017. Owned aircraft sold excluding sales and                     investment in finance and sales type leases and maintenance rights
     reclassifications to finance and sales-type leases.                                   intangible.
                                                                                        3. Interest expense including fair value amortization divided by average debt,
                                                                                           including debt fair value.
                                                                                        4. Depreciation rate including maintenance rights amortization.

                                                                                   3 66 4
AerCap Holdings N.V.
AerCap House
65 St. Stephen’s Green
Dublin 2, Ireland
+353 1 819 2010
contact@aercap.com

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