GE Capital Aviation Services

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					GE Capital
Aviation Services


GE Capital
Aviation Services
Local expertise, global
strength
About us
GE Company
                                            Jeffrey R. Immelt
                             Chairman of the Board & CEO GE
 THE FOUR BUSINESSES OF GE


                                  KEY STATISTICS
Capital
                               − 300,000+ employees worldwide
                               − Operating in more than 160 countries
Healthcare
                               − Manufacturing facilities in more than
                                 32 countries
Technology Infrastructure
                                  ’10 FINANCIAL HIGHLIGHTS
Energy Infrastructure
                               − Total Assets:      $751.2B
                               − Gross Revenue:     $150.2B
                               − Net Earnings:      $12.6B (Cont. Ops.)

                                                                          3
GE: A reputation of excellence
         The 25 Most Innovative Companies 2010, Bloomberg BusinessWeek April 2010
         Bloomberg BusinessWeek ranks GE among the world's 25 most innovative companies in its
         latest annual survey.

         World's Most Admired Companies, Fortune March 2010
         GE is ranked among the World's Most Admired Companies by Fortune for its 5th consecutive
         year.

         World's Most Ethical Companies, Ethisphere Magazine March 2010
         GE is proud to be recognized by Ethisphere Magazine as one of the World's Most Ethical
         Companies for the fourth year in a row.

         The World's Most Innovative Companies, Fast Company February 2010
         GE is ranked number one in health care and 19th overall on Fast Company's latest list of the
         world's top 50 most innovative companies.

         Best Companies for Leadership, BusinessWeek February 2010
         GE is named the World's Best Company for Leadership in the latest annual rankings released by
         BusinessWeek.

         America's Most Generous Corporate Foundations, BusinessWeek 14 January 2010
         BusinessWeek takes a look at the philanthropic efforts of American corporations and ranks the
         GE Foundation among the most generous.

         The World's 25 Most Inventive Companies, BusinessWeek 13 January 2010
         With over 20,000 patents filed over the last decade alone, BusinessWeek ranks GE among the
         world's most inventive companies.

         World's Best Companies for Leaders, Fortune November 2009
         Fortune ranks GE among the world's top companies for leaders, recognizing a company-wide
         commitment to developing leadership talent.
GE Capital
                                            Michael A. Neal
                                         Vice Chairman, GE
 BUSINESS DIVISIONS             President & CEO, GE Capital



GE Capital America              KEY STATISTICS

GE Capital Asia               − 50,000+ employees worldwide
                              − Operating in more than 35 countries
GE Capital Europe/ME/Africa
                              − Backed by industry strong AA+ and Aa2
GE Money                        ratings by S&P and Moody’s,
                                respectively
Verticals:
                                ’10 FINANCIAL HIGHLIGHTS
− Real Estate
                              − Total Assets:     $581.1B
− Energy Financial Services
                              − Gross Revenue:    $47B
− Aviation Services (GECAS)   − Net Income:       $3.3B (Cont. Ops.)

                                                                                 5

                                                      *Source GE 200710K/3Q’08 10Q
GE Capital Aviation Services
                                                Norman Liu
                                            President & CEO
 BUSINESS DIVISIONS


Aircraft Leasing (incl PK     KEY STATISTICS
AirFinance)                 − 480 employees worldwide

Asset Management Group      − Operating in more than 76 countries

(Engine Leasing, Asset      − Global fleet with over 1,550 owned
                              aircraft and approximately 200
Management Services)          managed aircraft
Airport Financing             ’10 FINANCIAL HIGHLIGHTS
                            − Total Assets:      $49.1B
                            − Gross Revenue:     $5.1B
                            − Net Income:        $1.2B (Cont. Ops.)

                                                                      6
     A timeline of growth

                                                                 Freighter                                                                      ATR 72-600 Turbo
                                                                Conversion                                        Focus on placements
                                                                             Aircraft Parts Trading                 and productivity
                                                                                                                       solutions
                        Engine leasing
                                                                                                                                                      B747-8F


   Aircraft Leasing                         Aircraft Debt
                                           PK AirFinance                                                                        AB and Boeing new
                                         Regional Fleet Intro                                 Airport Financing                      orders




      1993              1999                2000                2002              2006                2007             2009             2010          2011
   Original merger

                                                 9/11 crisis             Emerging markets               Economic meltdown               Emerging markets
Guinness Peat Aviation (GPA)                     multiple airline        booming                        • Fuel shock                       expansion
                                                 bankruptcies ~12        • 10 offices                   • Capital markets/                 2 new Africa
                                                                                                          credit crisis                     locations
                                                                                                                                        New fleet offerings
                                                                                                                                         ATR turbos, B747
                                                                                                                                            freighters
                                                                                                                             SF PowerPoint Template 03-27-08/7
                                                                                                                                                             7/
                                                                                                                                                GECAS 8/23/2011
GECAS: a simple
business model helps us
excel in a complex market
Global fleet with over 1,550 owned aircraft and
approximately 200 managed aircraft
Broad range of leasing, financing and servicing products
Expansive geographic footprint: 24 offices serving
approximately 245 customers in over 75 countries … a
leader in emerging markets
Experienced team with deep technical, financial,
marketing and restructuring expertise
Full asset lifecycle management: parts/part-out
solutions
Airport financing unit started in 2006
YE 2010: $49.1B in assets, $1.2B in net income, 480 staff


                                                            4
Global distribution network
• 24 offices covering airlines in 75 countries
• 11 locations serving emerging markets
Our fleet is made up of …
Multiple customer solutions
 Fleet



   Narrowbodies         Widebodies         Regional jets          Freighters           Turboprops

 Financing




   Structured finance       Secured debt             Capital markets           Investor servicing

 Adjacent services




    Engine leasing          Spare parts            Airport consulting          Airport investing
Fleet is strong, young, and fuel
efficient
Average age: 7 years
Good assets with broad operating
base
92% of narrow body fleet are very
attractive A320 and 737NG
aircraft
Majority of wide body fleet
broadly used 777s, 767s, & A330s
Skyline placement continues to      Note: 1,539 owned aircraft fleet as of 1Q11

be strong
 Product & geographic breadth
                Geography               Products

                            2%

                                                                      Op Lease
                                 13%
                                                       70%
                                                                      Loans
                                                                      Fin Lease
                                                                      Other
                                  15%




2% in transit




                                         Note: Portfolio as of 1Q08
Financing solutions
                                            Equity
                                    Sale/leasebacks
                                   Operating leases
                                  Tax/finance leases
                       Public/private securitizations
                             Bare aircraft purchases
                                 Forward purchases
                                              Debt
                      Secured loan/PDP syndications
                                Residual based debt
                            Investor acquisition debt
                      Debtor in possession financing
                         Rotables/inventory lending
Ancillary business units:
Asset Management Group (AMG)
Airport funding
Productivity solutions
Asset Management Group
(AMG)
  GE Engine Leasing
  Asset Management Services
   (parts exchanges/trading)

Airport funding
AMG: Engine leasing
GECAS Engine Leasing provides spare engine
solutions to customers around the globe.
Over 400 owned and managed GE, CFMI, Rolls-
Royce, Pratt & Whitney, and IAE engines in the
portfolio
Provides a full range of operational and financial
services including:
   − Operating leases (including sale/leaseback),
     and structured, long-term financing.
   − Short-term rentals (leases from 1 day
     to 1 year),
   − Guaranteed spare engine availability
   − Engine exchanges
AMG: Asset Management
Services
In 2006 acquired The Memphis Group,
one of the world’s largest parts trader
Parts trading, supply chain solutions &
stub leases
Significant GECAS commercial
synergies
   – Use portfolio roll-off as part-out
      feedstock
   – Component support and
      supply chain solution
      offerings for GECAS customers
Completes full life cycle
solutions … from new order
aircraft to parts trading
Airport funding
Co-sponsor with Credit Suisse an
infrastructure private equity fund, Global
Infrastructure Partners,
    − Investments in large infrastructure
      projects including gateway airports.

AviaSolutions subsidiary provides
consultancy services including: project
development, transaction advisory
(acquisitions/ divestitures), traffic
forecasting, route development, airport
master-planning and policy & regulation
Operations and financials
GECAS has a solid operating rhythm to
manage its skyline
Skyline placement targets set annually for region and products
 − Performance v targets tracked in business management system .. refreshes daily
Weekly all hands Market Intelligence Meetings to monitor progress
 − Chaired by CEO and COO
 − Action focused and cross functional
Deals in Progress (DIP) … get the deals closed
 − Weekly track days from LOI-to-approval and contract against targets by deal
Strong analytics to support fleet and
financing decisions
Sure credit rating model
   – Covers all customers plus prospective airlines (400+)
   – Clear category criteria applied globally
   – Calibrated to GE credit rating scale; Bi-annual recalibration

SAFE forecasting model
   – Forecasts “Expected PV (present value)” of the deal based on
       rents, fees collected, residual value
   – Calculates the Risk to Reward Ratio

Supply/demand models
   – Forecasts expected supply and demand
   – Incorporates production, retirements, parked aircraft and
       replacement and growth forecasts

Aircraft operating cost analytical models
    – Analyses aircraft direct operating costs
    – Considers fuel, maintenance, labor, usage, stage length, etc
Technical team
Shannon, Ireland based technical and asset
management teams keeps young fleet flying
with rollover expertise:
   − Technical services, including limited
     technical inspection of aircraft
   − Arranging registration and
     de-registration
   − Monitoring/enforcement of lease
     provisions against lessees
   − Confirming compliance with
     applicable ADs
   − Delivery and redelivery of aircraft
   − Arranging sale of aircraft to third
     parties
GECAS is a global
leader in aviation
Veteran team, deep domain expertise
Extensive geographical footprint
Full array of aviation products
Innovator in new products
Customer centric, solutions provider
Deep financial and restructuring
experience
A stable, growth business

				
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posted:11/14/2011
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