Deutsche Bank Aircraft Finance & Leasing Conference Aengus Kelly, CEO, AerCap Holdings N.V. September 7, 2016

Transcription

1 Deutsche Bank Aircraft Finance & Leasing Conference Aengus Kelly, CEO, AerCap Holdings N.V. September 7, 2016

2 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 identified by the use of forward-looking terminology such as may, might, should, expect, plan, intend, estimate, anticipate, believe, predict, potential or continue or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this presentation are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that couldcause our actual results, level of activity performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forwardlooking statements. As a result, there can be no assurance that the forwardlooking statements included in this presentation will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation might not occur. Accordingly, you should not rely upon forwardlooking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. We do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise. The information in this document is the property of AerCap Holdings N.V. and its subsidiaries and may not be copied or communicated to a fourth party, or used for any purpose other than that for which it is supplied without the express written consent of AerCap Holdings N.V. and its subsidiaries. No warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon AerCap Holdings N.V. or any of its subsidiaries or associated companies

3 AerCap Update AerCap has achieved several key milestones since last year s DB leasing conference Completed ILFC acquisition, exceeding all financial and integration targets set at announcement Generated $2.3 billion of net income, reduced net debt by $3.1 billion and returned $1.25 billion to our shareholders Repurchased 15.4 million shares, 8.3% of shares outstanding 1 Regained Investment Grade credit rating with S&P and Fitch Raised liquidity of $5.4 billion 2 $22.2 billion of financing since ILFC acquisition announcement Executed a record level of 368 aircraft transactions aircraft transactions since ILFC acquisition announcement Added first Airbus A350XWB to our aircraft portfolio on lease to Vietnam Airlines Delivered Africa s first Airbus A350XWB on lease to Ethiopian Airlines Executed first placement of Boeing 737 MAX 8s (1) As of August 5, 2016 (2) Twelve months since June 30,

4 Air Travel Outlook Long-term upward trend in traffic underlines the resilience of industry performance (trillion) % $3.8B 2016 World Traffic RPK Growth 1 x2 Air Passenger Volume (RPK) Doubles Every 15 Years Total Passengers 1 Up from 3.6B in x2 $39B 2016 Total Net Profit 1 Up from $35B in 2015 EXPECTED GROWTH THROUGH x2 4.5% World air traffic expected to grow by 6.2% in 2016, with 3.8 billion passengers, up from 3.6 billion in Strong and resilient air traffic growth at 4.5% over the next 20 years 1 As air transport develops, new drivers become more significant 1 (1) Airbus Global Market Forecast 2016;; IATA June 2016 Forecast Actual or estimate for 2015 and forecast for 2016 for global commercial airlines 3 4 4

5 Air Travel Growth Air travel remains resilient in an an unpredictable world Air Traffic Growth 1 (RPKs, billion per month) MERS Ebola ISIS Oil Russian crisis Zika Brazil crisis China/EM slowdown, Brexit Average 5.5% growth, seasonally adjusted BRU The market grows solidly in line with the average long-term growth of 5.5% 1 The upward momentum has weakened in 1H 2016 in the face of moderate economic growth and terrorism impacts Orlando IST ACTS OF TERROR Boston Paris Metrojet Paris Nice Germany The impact of such shock events is transitory 1 (1) IATA Economics, IATA Monthly Statistics 3 5 4

6 Leasing Market Remains Strong Aircraft leasing continues to grow and demand for our product remains robust Leased fleet expected to increase to 50% by 2021 from 42% in Robust industry performance translating into healthy and balanced global demand for new technology aircraft Global fleet expected to double through ,620 new aircraft expected to be delivered at a value greater than $5.9 trillion 1 Demand for air travel is expected to grow with capacity increases anticipated for both mid-life and end-of-life aircraft from a diverse group of airlines 1 Few discernable industry competitors and continued importance of the leasing sector to OEMs (1) Boeing Current Market Outlook and Current Aircraft Finance Market Outlook 2016;; Airbus Global Market Forecast

7 Q Financial Results & Highlights AerCap continues to generate strong earnings and profitability Financial Results Highlights Net Income ($ million) 2Q H 2016 Reported Adjusted Diluted Earnings Per Share ($) 2Q H 2016 Reported Adjusted aircraft transactions, including 27 widebody transactions 99.4% fleet utilization 6.0 years average remaining lease term 90% of new aircraft deliveries through 2018 leased $1 billion of sales closed in 1H 2016 and another $1 billion of contracted sales expected to close in 2H 2016 $10 billion of available liquidity 2.8 to 1 adjusted debt/equity ratio $45.26 book value per share Repurchased 7.7 million shares in 2Q 2016 and 15.4 million shares year to date through August 5,

8 AerCap s Competitive Advantage Our global vision, reach and scale differentiate AerCap from other lessors LEADING LESSOR MARKET REACH SIGNIFICANT SCALE INSTALLED BASE AND FLEXIBILITY PROVIDING A STRONG LEASING PARTNER GLOBAL FOOTPRINT WITH DEEP AND BROAD MARKET PENETRATION DIVERSE PORTFOLIO ALLOWING DEALS NO OTHER LESSOR CAN EXECUTE DEEP ROOTS IN THE INDUSTRY Vision Reach Scale GLOBAL LEADER IN AVIATION ATTRACTIVE ORDERBOOK STRONG FRAMEWORK FINANCIAL STRENGTH INDUSTRY-LEADING ORDER BOOK AND KNOWLEDGE OF ENTIRE AIRCRAFT LIFECYCLE HIGHLY EXPERIENCED MANAGEMENT TEAM FOCUSED ON RESULTS AND PRAGMATISM STRONG BALANCE SHEET AND ACCESS TO CAPITAL 3 8 4

9 AerCap Investment Case AerCap is committed to maximizing return on capital to our shareholders Global platform with unmatched breadth and reach Strong earnings and cash flow generation Disciplined portfolio management Strong liquidity and access to capital GLOBAL LEADER IN AVIATION Highly experienced management with deep expertise Hedging strategies to mitigate risk 3 9 4

10 Q&A

11 AerCap La Touche House IFSC Dublin 1, Ireland contact@aercap.com