Investor Presentation
January 7, 2020
Investor Presentation January 7, 2020 Forward-Looking Statements - - PowerPoint PPT Presentation
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
January 7, 2020
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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
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 November 8, 2019.
DIVERSIFIED LESSEES 43
Airlines
24
Countries
MANAGED BY BBAM
World’s third largest aircraft lease manager Global platform Provides FLY with scale of larger players
LONG- DATED FINANCING 4.5 Year
average life, scheduled amortization Term Loan re-pricing equal to best in class
$1.3B / 30 AIRCRAFT PIPELINE
21 new A320/321neos
long leases 8 B737-800s 1 A320ceo
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92 AIRCRAFT 7.7 Years
average age
5.0 Years
average lease term
ROBUST FINANCIAL RESULTS
Strong growth in 2019 Net Income, EPS, ROE and NBV per Share
Note: Figures as of September 30, 2019
AIRBUS A330 AIRBUS A320NEO FAMILY AIRBUS A320CEO FAMILY BOEING 787 BOEING 777-LRF BOEING 757-SF BOEING 737 MAX BOEING 737NG
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CFM56 ENGINES
Owned & Leased Separately
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➢ FLY benefits from BBAM’s full-service platform
Buying & Selling Advantage Purely an Aircraft Manager
BBAM does not own any aircraft
A Global Leader in Aircraft & Lease Management Strong Alignment of Interests
BBAM shareholders own 17% of FLY stock ➢ BBAM provides access to larger deals & stronger returns
capital
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ADJUSTED NET INCOME
ADJUSTED EPS
ADJUSTED ROE
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$20.89 $21.50 $22.74 $24.28 $25.85
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
2019 Acquisitions Completed
– 2 acquired in Q3
1 7 11 2 Q4 2019 2020 2021 2022
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A320neo Family Delivery Schedule
Committed Pipeline
– 6 expected to close in Q4 2019 – 3 expected to close in H1 2020
Aircraft Sold YTD 2019
➢ 25 sold through Q3
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NET DEBT-TO- EQUITY RATIO AT SEPTEMBER 30
PREMIUM TO NET BOOK VALUE ON YTD SALES
Sales Benefits
➢ Demonstrates value in balance sheet ➢ Reduces leverage and concentration ➢ Generates free cash
Flexibility for Capital Allocation & Debt Refinancing
➢ Low leverage ➢ Significant cash balance ➢ Rating upgrade to BB from Standard & Poor’s ➢ Repriced and extended $385 million Term Loan at L+1.75%
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43 Airlines in 24 Countries Geographic Diversity
In India 21% 21% Mala alaysia 16% 16% Eth thiopia 10% 10% Phili ilippines 9% 9% In Indonesia 7% 7% Chin ina 6% 6% Sp Spai ain 5% 5% UK UK 5% 5% USA SA 4% 4% Fr Fran ance 3% 3% Oth Other 13% 13%
(1) Percentages by net book value. (2) Air India leases are guaranteed by the Indian government. 13
Top 10 Lessees
AirA irAsia Ber erhad 11% 11% Air ir In India 10% 10% Eth thiopian Airl irlines 10% 10% Phili ilippine Airl irlines 8% 8% Mala alaysia Airl irlines 6% 6% Air ir Euro ropa 4% 4% Sp Spic icejet 4% 4% Lio Lion Air ir 3% 3% Tra ransavia 3% 3% AirA irAsia In India 3% 3%
(2)
(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. (3) Represents the ratio of total debt, less unrestricted cash and cash equivalents, divided by shareholders’ equity.
(in millions) September 30, 2019 December 31, 2018 Unrestricted cash and cash equivalents $433 $180 Unencumbered assets $318 $332 O /S Rate(1) O /S Rate(1) Maturity(2) 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 Debt to Equity Net Debt to Equity(3) Secured Debt to Total Debt 3.2x 2.6x 76% 4.3x 4.0x 79% Total Debt to TotalCapitalization 76% 81%
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