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. 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 otherwise. Notes: 1. All period end figures are as of June 30, 2019 except as otherwise noted. Any 2019 year-to-date data is as of August 20, 2019. 2. Fleet age and lease term are calculated using the weighted net book value of flight equipment held for operating lease and flight equipment held for sale, including maintenance rights and investment in finance lease, at period end. 3. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP operating and financial measures. These non-GAAP operating and 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. 2
Colm Barrington CEO
FLY at a Glance $2B+ TRADING AT MANAGED BY DIVERSIFIED LONG-DATED 98 DISCOUNT TO BBAM LESSEES (1) FINANCING GROWTH NET BOOK AIRCRAFT CAPACITY VALUE OF World’s third 40 4.7 Years largest aircraft 21 YOUNG FLEET lease manager Average life, 7.4 Years Airlines in New A320/ $24.28 scheduled 21 A321neos on average age amortization committed leases per share Countries 17% LONG LEASES 8 5.3 Years of FLY owned Options exercised by BBAM average lease for new A320neo Shareholders term family aircraft Note: Figures as of June 30, 2019 4 (1) Excludes aircraft held for sale.
FLY’s Fleet of 98 Modern Aircraft 33% 35% AIRBUS A320 BOEING 737NG Net Book Value 42 42 FAMILY NBV NBV $3.4B AIRBUS A330 5% BOEING 737 MAX 3% 3 2 $3.0B 1% BOEING 757-SF Q2 2018 Q2 2019 AIRBUS A340 0% 2 1 Total Aircraft 98 9% BOEING 777-LRF CFM ENGINES 7 2 Owned & Leased Separately 85 BOEING 787 14% 5.3 7.4 4 Q2 2018 Q2 2019 YEARS AVG. AGE YEARS AVG. LEASE TERM 5 Note: Percentages represent weighted average net book value.
Strong leasing Industry Conditions Continue Airlines Aircraft Leasing ROBUST GLOBAL STRONG DEMAND AIR TRAFFIC GROWTH FOR LEASED AIRCRAFT 5.0% Passenger Growth + Record load 2019 Growth factors + Manufacturer Backlogs Forecast (1) ROBUST SECONDARY CONTINUED AIRLINE MARKET FOR PROFITABILITY AIRCRAFT SALES $28B 2019 Global Airline Profit Forecast (1) 6 (1) Source: IATA, as of June 2019.
• Rigor on pricing DISCIPLINED • Limited financing risk ACQUISITIONS • Pipeline of leased A320/A321neos FLY’s Strategy • Focus on secured markets CONSERVATIVE • Long-dated and amortizing FINANCING • Limited balloon repayments • Consistently sell at gains ACTIVE FLEET • Acquire new aircraft MANAGEMENT • Maintain a young fleet ENHANCING • Delivering double-digit ROE SHAREHOLDER • Share repurchases at discount to book value • Steadily growing book value per share VALUE 7
DELIVERING RECORD RESULTS Q2 Highlights $61.9M ADJUSTED NET INCOME KEY NUMBERS 33% $1.92 AT A GLANCE ADJUSTED EPS ADJUSTED ROE $24.28 BOOK VALUE PER SHARE 8
Strong & Steady Growth in Book Value Per Share Share Repurchases $24.28 +16% at below book value • Strong value in FLY shares, which trade at a $22.74 significant discount to book value • Repurchased 2 million shares (~6%) YTD at >30% discount to book value $21.50 • New $50 million share repurchase program $20.89 Selling aircraft at above book value Q3 2018 Q4 2018 Q1 2019 Q2 2019 9
Aircraft Sales Continue to Generate Healthy Gains Aircraft Sales 8% • 95 aircraft sold since 2015 (~$2.4B gross proceeds) • Aggregate 8% premium to net book value PREMIUM TO NET BOOK VALUE ON 95 AIRCRAFT SALES SINCE JANUARY 2015 • 14 more aircraft contracted for sale this year, since 6/30 Reduced Leverage following $1B 2018 3.1x Portfolio Acquisition • Reduced to 3.1x from 4.0x at December 31, 2018 NET DEBT-TO-EQUITY RATIO AT JUNE 30 • Achieved target leverage ahead of expectations Note: Figures as of June 30, 2019 unless noted otherwise. 10
Solid Growth Pipeline & Ample Capacity Leased A320/A321neo Deliveries Actively Targeting Acquisitions 9 9 • Six aircraft acquired & contracted in 2019 • Pipeline of 21 new A320/A321neos 2 1 – All leased, first delivery in Q4 2019 • Eight NEO options exercised for 2020/2021 deliveries Q4 2019 2020 2021 2022 Strong Liquidity, Long-Dated Financing • $352 million unrestricted cash • $288 million NBV of unencumbered aircraft $2B+ • 4.7 year average debt life • No significant debt maturities until Q4 2021 GROWTH CAPACITY Note: Figures as of June 30, 2019. 11
$70M Q3 Pre-Tax Income Guidance FLY’s Value Proposition Growing Book Value Per Share Committed Significant Growth Pipeline Buying Power A320NEO FAMILY DELIVERIES $2B+ OF CAPACITY STARTING IN Q4 2019 Shares Trading at Discount to Book Value 12
Recommend
More recommend
