Investor Presentation January 7, 2020
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 benefit from 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. Unless otherwise noted, all period end figures are as of September 30, 2019 and any year-to-date data is as of September 30, 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 November 8, 2019. 2
FLY at a Glance $1.3B / 30 LONG- MANAGED ROBUST DATED BY BBAM FINANCIAL DIVERSIFIED 92 AIRCRAFT FINANCING RESULTS LESSEES AIRCRAFT PIPELINE World’s third 4.5 Year largest aircraft 43 7.7 Years average life, lease manager 21 new Strong growth scheduled Airlines average age A320/321neos amortization in 2019 Net Global on committed platform Income, EPS, 5.0 Years long leases 24 Term Loan ROE and NBV average lease re-pricing Provides FLY Countries per Share equal to best term with scale of 8 B737-800s in class larger players 1 A320ceo 3 Note: Figures as of September 30, 2019
FLY’s Fleet of Modern Aircraft as of Dec 31 AIRBUS A320CEO BOEING 737NG 34 42 FAMILY BOEING 787 AIRBUS A320NEO 4 1 FAMILY BOEING 777-LRF AIRBUS A330 2 3 BOEING 737 MAX CFM56 ENGINES 7 2 Owned & Leased Separately BOEING 757-SF 1 4
– A Strong Partner for FLY A Global Leader in Aircraft & Lease Buying & Selling Advantage Management ➢ FLY benefits from BBAM’s full-service platform ➢ BBAM provides access to larger deals & stronger returns • 500+ aircraft managed • $27+ billion assets under management • 200+ airline relationships • Access to several pools of public and private • 150 buying, leasing, technical professionals capital • 8 offices world-wide Purely an Aircraft Manager Strong Alignment of Interests BBAM does not own any aircraft BBAM shareholders own 17% of FLY stock 5
• Pipeline of new technology aircraft DISCIPLINED • Rigor on pricing ACQUISITIONS • Limited financing risk FLY’s Strategy • Long-dated and amortizing CONSERVATIVE • Limited balloon repayments FINANCING • Reduced leverage to 2.6x • Selling at gains ACTIVE FLEET • Acquiring new aircraft MANAGEMENT • Maintaining young fleet ENHANCING • Consistently growing book value STAKEHOLDER • Delivering double-digit ROE VALUE • Opportunistic share repurchases 6
DELIVERING ROBUST RESULTS KEY YTD $168.9 M NUMBERS THRU Q3 ADJUSTED NET INCOME 2019 30% $5.28 ADJUSTED EPS ADJUSTED ROE 20% Increase in Book Value Per Share to $25.85 7
Strong & Steady Growth in Book Value Per Share +24% $25.85 $24.28 $22.74 $21.50 $20.89 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 8
$1.3B Growth Pipeline 2019 Acquisitions Completed • 4 B737-800s acquired through Sept 30 – 2 acquired in Q3 11 Committed Pipeline 7 • 21 new A320neo family aircraft 2 • 8 B737-800s / 1 A320ceo 1 – 6 expected to close in Q4 2019 Q4 2019 2020 2021 2022 – 3 expected to close in H1 2020 A320neo Family Delivery Schedule 9
Aircraft Sales Generating Benefits Aircraft Sold YTD 2019 Sales Benefits 13% ➢ Demonstrates value in balance sheet ➢ 25 sold through Q3 PREMIUM TO ➢ Reduces leverage and concentration • $86.4 million economic gain NET BOOK VALUE ➢ Generates free cash • 13% premium to book value ON YTD SALES Flexibility for Capital Allocation & Debt Refinancing 2.6x ➢ Low leverage NET DEBT-TO- ➢ Significant cash balance EQUITY RATIO AT ➢ Rating upgrade to BB from Standard & Poor’s SEPTEMBER 30 ➢ Repriced and extended $385 million Term Loan at L+1.75% 10
FLY’s Value Proposition Attractive Portfolio of Consistent Sales of ✓ Positive Outlook Aircraft and Leases Aircraft at Gains ✓ Valuable Portfolio ✓ Robust Liquidity Growing Book Value ✓ Low Refinancing Low Leverage and Per Share Significant Cash Risk ✓ Limited ✓ Attractive Growth Refinancing Risk Committed $1.3B Pipeline of Leased Aircraft Pipeline 11
Appendices
Well-Diversified Customer Base 43 Airlines in 24 Countries Top 10 Lessees Geographic Diversity AirA irAsia Oth Other India In AirA irAsia In India 13% 13% Tra ransavia 3% 3% Ber erhad 21% 21% 3% 3% 11% 11% Fran Fr ance 3% 3% Lion Air Lio ir USA SA 3% 3% 4% 4% Spic Sp icejet UK UK 4% 4% (2) Air ir In India 5% 5% 10% 10% Air ir Euro ropa Spai Sp ain 4% 4% 5% 5% Mala alaysia 16% 16% Mala alaysia Chin ina 6% 6% Airl irlines 6% 6% In Indonesia Eth thiopia 7% 7% Phili ilippine Eth thiopian Phili ilippines 10% 10% Airl irlines Airl irlines 9% 9% 8% 8% 10% 10% (1) Percentages by net book value. 13 (2) Air India leases are guaranteed by the Indian government.
Capital Structure & Liquidity Overview (in millions) September 30, 2019 December 31, 2018 Unrestricted cash and cash equivalents $433 $180 Unencumbered assets $318 $332 Rate (1) Rate (1) Maturity (2) O /S O /S Securitization — — $86 3.08% — 2012 Term Loan $391 4.51% 408 5.17% 2023 Nord LB Facility 98 3.88% 109 4.29% 2020 Other Bank Debt Facilities 716 4.28% 808 4.44% 2020-2028 Aircraft Acquisition Facility 100 4.45% 190 4.10% — Magellan Acquisition Facility 285 4.14% 305 4.18% 2025 Fly Aladdin Acquisition Facility 308 4.78% 467 4.59% 2023 Fly Aladdin Engine Funding Facility 43 4.95% 44 4.95% 2021-2022 Unamortized Discounts and Loan Costs (26) (37) Total Secured Debt $1,915 4.39% $2,380 4.49% 2021 Notes 325 6.38% 325 6.38% 2021 2024 Notes 300 5.25% 300 5.25% 2024 Unamortized Discounts and Loan Costs (6) (7) Total Unsecured Debt $619 5.84% $618 5.84% Total Debt 2,534 4.74% 2,998 4.76% Shareholders' Equity 799 702 Total Capitalization $3,333 $3,700 3.2x 4.3x Debt to Equity Net Debt to Equity (3) 2.6x 4.0x 76% 79% Secured Debt to Total Debt Total Debt to TotalCapitalization 76% 81% (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. (2) The Aircraft Acquisition Facility was repaid in October 2019. In November 2019, the 2012 Term Loan was amended to reduce the interest payable to three-month LIBOR plus 1.75%, and to extend the maturity date to August 2025. 14 (3) Represents the ratio of total debt, less unrestricted cash and cash equivalents, divided by shareholders’ equity.
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