Deutsche Bank Aircraft Finance & Leasing Conference
September 2019
Deutsche Bank Aircraft Finance & Leasing Conference September - - PowerPoint PPT Presentation
Deutsche Bank Aircraft Finance & Leasing Conference September 2019 Forward-Looking Statements This presentation contains certain forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
September 2019
2
This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for FLY’s future business, operations and financial performance. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, and the risk that FLY may be unable to achieve its portfolio growth expectations, or to reap the benefits of such growth. Further information on the factors and risks that may affect FLY’s business is included in filings FLY makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 20-F and its reports on Form 6-K. FLY expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or
Notes:
sale, including maintenance rights and investment in finance lease, at period end.
financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. We have provided a reconciliation of those measures to the most directly comparable GAAP measures in the Appendix. For further information, please refer to FLY’s earnings press release dated August 22, 2019.
DIVERSIFIED LESSEES(1)
Airlines in
Countries
MANAGED BY BBAM
World’s third largest aircraft lease manager
by BBAM Shareholders
LONG-DATED FINANCING
Average life, scheduled amortization
GROWTH CAPACITY
New A320/ A321neos on committed leases
Options exercised for new A320neo family aircraft
4
AIRCRAFT
YOUNG FLEET
average age LONG LEASES
average lease term
TRADING AT DISCOUNT TO NET BOOK VALUE OF
per share
Note: Figures as of June 30, 2019 (1) Excludes aircraft held for sale.
$3.0B $3.4B
Q2 2018 Q2 2019
BOEING 757-SF BOEING 737 MAX AIRBUS A340 BOEING 737NG BOEING 777-LRF BOEING 787 AIRBUS A330
AIRBUS A320 FAMILY
5
YEARS AVG. LEASE TERM
YEARS AVG. AGE
85 98
Q2 2018 Q2 2019
Total Aircraft
Note: Percentages represent weighted average net book value.
33%
NBV
14% 9% 0%
3% 5% 35%
NBV
1%
Net Book Value
CFM ENGINES
Owned & Leased Separately
ROBUST GLOBAL AIR TRAFFIC GROWTH
2019 Growth Forecast(1)
CONTINUED AIRLINE PROFITABILITY
2019 Global Airline Profit Forecast(1)
(1) Source: IATA, as of June 2019.
STRONG DEMAND FOR LEASED AIRCRAFT
Passenger Growth + Record load factors + Manufacturer Backlogs
ROBUST SECONDARY MARKET FOR AIRCRAFT SALES
6
7
8
ADJUSTED NET INCOME
BOOK VALUE PER SHARE
ADJUSTED EPS
ADJUSTED ROE
9
$20.89 $21.50 $22.74 $24.28
Q3 2018 Q4 2018 Q1 2019 Q2 2019
Share Repurchases at below book value
significant discount to book value
at >30% discount to book value
Selling aircraft at above book value
10
NET DEBT-TO-EQUITY RATIO AT JUNE 30
PREMIUM TO NET BOOK VALUE ON 95 AIRCRAFT SALES SINCE JANUARY 2015
Note: Figures as of June 30, 2019 unless noted otherwise.
Actively Targeting Acquisitions
– All leased, first delivery in Q4 2019
Strong Liquidity, Long-Dated Financing
GROWTH CAPACITY 1 9 9 2 Q4 2019 2020 2021 2022
Leased A320/A321neo Deliveries
11 Note: Figures as of June 30, 2019.
12
A320NEO FAMILY DELIVERIES STARTING IN Q4 2019
$2B+ OF CAPACITY