Goldman Sachs 2015 Aircraft Leasing Conference

Transcription

1 Goldman Sachs 2015 Aircraft Leasing Conference Tony Diaz President, CIT Commercial Air December 3, 2015

2 Important Notices This presentation contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words expect, anticipate, estimate, forecast, initiative, objective, plan, goal, project, outlook, priorities, target, intend, evaluate, pursue, commence, seek, may, would, could, should, believe, potential, and continue, or the negative of any of those words or similar expressions are intended to identify forward-looking statements. All statements contained in this presentation, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that CIT is unsuccessful in implementing its strategy and business plan, the risk that CIT is unable to react to and address key business and regulatory issues, the risk that CIT is unable to achieve the projected revenue growth from its new business initiatives or the projected expense reductions from efficiency improvements, and the risk that CIT becomes subject to liquidity constraints and higher funding costs. We describe these and other risks that could affect our results in Item 1A, Risk Factors, of our latest Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on the forward-looking statements contained in this presentation. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law. ThispresentationistobeusedsolelyaspartofCITmanagement s continuing investor communications program. This presentation shall not constitute an offer or solicitation in connection with any securities. 1

3 CIT is a Financial Holding Company with 100+ Years of Experience North America Banking Transportation & Int l Finance Legacy Consumer Mortgages Financing and Leasing Assets 1 Total $50 Billion Commercial Banking Commercial Real Estate Commercial Services Aerospace Rail Maritime Finance Single Family Residential Reverse Mortgages Legacy Consumer Mortgages $5 North America Banking $25 Transportation & International Finance $20 Equipment Finance International Finance Consumer Banking 1 Financing and Leasing assets include loans, operating lease equipment and assets held for sale; data as of 9/30/15. Initiatives to Transition to a US Commercial Bank Acquired OneWest Bank on August 3, 2015 added $14 billion of financing and leasing assets Exiting select international platforms in UK, Canada and China Named Ellen Alemany, Vice Chairman, to succeed John Thain as CEO in April 2016 Announced the strategic review of Commercial Air to realize the value of the franchise 2

4 Commercial Air

5 High Quality Portfolio Key Attributes Own, finance and manage a fleet of over 350 aircraft ~$10 billion portfolio, over $9 billion of operating lease equipment (271 aircraft) Young, fuel-efficient and technologically advanced aircraft Weighted average age is ~6 years 98% of fleet is in-production In-demand aircraft with broad operator appeal Primarily narrow body (A320s & 737s) Select intermediate body (A330s) Continue to add latest technology aircraft NEO, MAX, A350, 787 Diverse client base ~100 lending and leasing clients Clients in ~50 countries Operating Lease Aircraft Portfolio (by type) E175 4 A319/A320/A B767 5 B Other 6 B757 8 A $9.1 Billion Portfolio 271 Aircraft E190/E Data as of 9/30/15; data based on operating lease fleet and net investment. 4

6 Strong Order Book $10 Billion of Aircraft on Order Order Book Is a Key Value Driver Ensures access to current and in-demand equipment/technologies Provides predictable growth Strengthens relationship with manufacturers and clients Supply chain is a valuable information source in risk management Commercial Air (148 Aircraft) Aircraft Orders by Year ($B) Aircraft Orders by Model A (NG) 4 A A320/A321 (NEO) A330 (NEO) 15 A (MAX) Strategically Positioned Predominantly New Technology Data as of 9/30/15, order amounts exclude deposits and sale-leasebacks 5

7 TC-CIT Aviation Joint Venture Joint Venture between CIT Aerospace and Century Tokyo Leasing Summary Launched in Q Leverages CIT s expertise and relationships with CTL s funding capabilities Enhances fee revenue and ROE Seed Portfolio CIT Sold 14 commercial aircraft to TC-CIT Aggregate value of aircraft sold ~$0.6 billion Portfolio Growth 19 aircraft as of 9/30/2015 with an aggregate value of ~$0.9 billion Portfolio is expected to exceed $1.0 billion by 12/31/2015 and approach $2.0 billion by

8 Managing Through the Cycle Seasoned Team Disciplined Underwriting Proactive Management Technical Expertise Economically Driven High Utilization Rate Average contractual utilization in excess of 99% over past 10 years Balanced Expiration Schedule ~10% of operating lease fleet expires each year from Over half of fleet expires beyond 2019 Geographic Distribution Strong Residual Realization Proactive portfolio management Consistent realization of over 100% 9% 21% 4% 26% 12% 16% 10% 34% 21% 11% 7% 37% 39% 28% 23% Africa/Middle East Asia/Pacific Europe Latin America US and Canada 2015* Broad Spread of Risk *Data as of 9/30/15. 7

9 Recent transactions with the world s premier airlines. 8

10 CIT Commercial Air A Premium Franchise High Quality Fleet Proven Asset Manager Broad & Diverse Customer Base Strong Order Book Global Distribution Network 9

11 North American Commercial Finance 10