AYR Investor Day May 2014

8/10/2019 AYR Investor Day May 2014

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Investor and Analyst Day Presentation

May 14, 2014


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Forward-Looking Statements

2

Certain items in this presentation and other information we provide from time to time, may constitute forward-looking

statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to,

statements relating to our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues,

earnings, EBITDA, Adjusted EBITDA, Adjusted Net Income, Operating Cash Flow, Cash Earnings and Cash ROE and the globalaviation industry and aircraft leasing sector. Words such as anticipates, expects, intends, plans, projects, believes,

may,will,would,could,should,seeks,estimatesand variations on these words and similar expressions are intended

to identify such forward-looking statements. These statements are based on managementscurrent expectations and beliefs and

are subject to a number of factors that could lead to actual results materially different from those described in the forward-

looking statements; Aircastle can give no assurance that its expectations will be attained. Accordingly, you should not place undue

reliance on any forward-looking statements contained in this report. Factors that could have a material adverse effect on our

operations and future prospects or that could cause actual results to differ materially from Aircastle expectations include, but are

not limited to, capital markets disruption or volatility which could adversely affect our continued ability to obtain additional

capital to finance new investments or our working capital needs; government fiscal or tax policies, general economic and businessconditions or other factors affecting demand for aircraft or aircraft values and lease rates; our continued ability to obtain favorable

tax treatment in Bermuda, Ireland and other jurisdictions; our ability to pay dividends; high or volatile fuel prices, lack of access to

capital, reduced load factors and/or reduced yields, operational disruptions caused by political unrest and other factors affecting

the creditworthiness of our airline customers and their ability to continue to perform their obligations under our leases and other

risks detailed from time to time in Aircastles filings with the SEC, including as previously disclosed in Aircastles 2013 Annual

Report on Form 10-K, and elsewhere in this report. In addition, new risks and uncertainties emerge from time to time, and it is not

possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those

contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this report. Aircastle

Limited expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements

contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on

which any statement is based.

The information contained herein is the property of Aircastle Limited and shall not be disclosed, copied, distributed or

transmitted, or used for any purpose, without the express written consent of Aircastle Limited.


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Agenda

Introduction Frank Constantinople, SVP/ IR

Business Strategy Overview Ron Wainshal, CEO

Market Overview Guy Bacigalupi, CRO

Investment Strategy Mike Kriedberg, CCO

Portfolio Management Dave Walton, COO

Financing Markets Update Roy Chandran, EVP Capital Markets

Capital Structure and Financial Performance Mike Inglese, CFO

Q&A

3


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Business Strategy Overview

4


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Aircastle Profile & History

Formed 10 years ago as a bespoke aircraft investor and lessor

Went public in Aug 2006 (NYSE: AYR)

Sold significant minority stake to Marubeni Corporation in Jul 2013

At Mar 31, 2014 owned 164 aircraft leased to 65 customers in 37 countries

$5.8 billion in book value of aircraft and $1.6 billion in equity book value

One of the Worlds Leading Aircraft Investors

5


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Corporate Strategy

Value Investor in commercial jet aircraft

Cash flow-driven and long term oriented

Flexible capital structure with efficient financing access from many sources

Strong in-house team to capitalize on a multitude of opportunities

Counter-cyclical approach to buying / selling

Return capital to shareholders on a regular basis

Ownership structure with core long-term minded shareholders

6

Differentiated strategy that builds on our strengths


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World Class Management Team

Team Aircastle Role Previous Role

Ron Wainshal

Chief Executive Officer since 2005 GECAS - Asset Management GroupHead, Restructuring Leader

Michael Inglese Chief Financial Officer since 2007 PanAmSatChief Financial Officer

David Walton Chief Operating Officer since

2006; General Counsel since 2005

Boullioun Aviation ServicesChief

Legal Officer

Michael

Kriedberg

Chief Commercial Officer since

2013

GECAS - Executive Vice President,

Aviation Financing Operations

Roy Chandran Executive Vice President, Capital

Markets since 2008

CitigroupDirector, Capital

Markets

Guy Bacigalupi Chief Risk Officer since 2012 GE Capital - Risk Management;

Federal Reserve Bank of New York

7

Experienced and well-integrated team


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Shareholders

8

Premier Japanese trading company

Blue chip company with 150+ year history

120 offices in 65 countries

$70 billion in assets

Stock market capitalization of $12 billion

Broad aerospace industry experience

Leading Canadian pension plan

$140 billion in assets under

management

Largest single profession pension plan

in Canada

Significant global investor

NYSE-listed with two large, strategic investors with long-term, global orientations

Completed evolution from private equity funded start-up

Marubeni and Ontario Teachers collectively own ~30% of Aircastlesshares $209 million share sale to Marubeni completed in July 2013

Marubeni has two of ten seats on AircastlesBoard

Diverse shareholder base with two major investors


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Investment Strategy

Analytically driven and price sensitive

Cash flow minded

Underwrite to hold; trading mindset

Broad approach to sourcing investments

Focus on value-add situations

Sensitive to last off the line / aircraft production life effects

Countercyclical orientation

Require return premium for future capital commitments

9

Savvy aircraft investor with disciplined approach


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Economic Lives of Aircraft

An aircraft will remain economically viable as long as the present value of

future earnings is more than its disposition value

Engines are the most maintenance intensive parts of aircraft and account for

most of an aircrafts residual value

Engine values are driven by maintenance condition, not age

Engine values are highest when the installed base is largest

Our investment viewpoint:

Aircraft from the earlier part of a production run are likely to last longer

Last off the line aircraft typically have shorter lives Aircraft residual values are primarily engine related, and these are most robust

earlier in the production run when the installed base is highest

10


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Aircraft Value over the Production Life

The depreciation rate for last off the line aircraft is roughly twice that of a unit

produced during the first part of the production life

Chart also shows business cycle impacts on value

Slope 4% p.a.

Source: Ascend.

Slope 7% p.a.

Good time to

buy

11

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Market Value History: A320-200($ millions)


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Comparing New with Current Technology Aircraft

Consider incremental revenue generating potential

No additional seats for NEO/ MAX vs. CEO/ NG

Lower fuel consumptionmost easily calculated benefit

But what fuel cost levels to assume and what will lessees bear?

Maintenance costs Hard to gauge how new technology will perform, particularly engines

Residual value and useful life

Production levels expected to rise

12

A320 NEO vs. CEO (Illustrative)

Gallons per year 1,750,000 2,000,000 2,250,000

Monthly Benefit from 12% fuel efficiency gain

Fuel Price/ gallon $ 2.50 $43,750 $50,000 $56,250

$ 3.00 $52,500 $60,000 $67,500

$ 3.50 $61,250 $70,000 $78,750Note: Jet fuel price per gallon at market close on May 9, 2014 was $2.87 per Bloomberg JETINYPR index.


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Capital Structure

Conservative

Multiple funding sources

Balance between secured and unsecured

Neutral to interest rate movements

Manage maturity walls

Corporate revolver for flexibility and to capture opportunities

Maintain access throughout market cycle

13

Flexible financing approach;

Integrated with investment strategy


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Business Outlook

Global GDP growth forecast to increase

slowly

Recovery in Europe, slowing growth in Asia

GDP growth will drive passenger travel

Air freight expected to benefit eventually

However, a glut of supply poses a big challengefor the sector

Low interest rates and high fuel prices are

having a significant impact on the aircraft

market

14

IATA Forecast 2014 2015 2016 2017

Pax Traffic Growth 5.8% 6.7% 6.6% 6.3%

Air Cargo Traffic Growth 4.0% 5.4% 5.1% 4.2%

Source: IATA Industry Financial Forecast Table, March 2014.

Source: International Monetary Fund, World Economic Outlook Database, April 2014.

2010 2011 2012 2013 2014P

World Output 5.2% 3.9% 3.2% 3.0% 3.6%

Advanced Economies

United States 2.5% 1.8% 2.8% 1.9% 2.8%

Euro Area 2.0% 1.6% -0.7% -0.5% 1.2%

Japan 4.7% -0.5% 1.4% 1.5% 1.4%

Developing Asia 9.7% 7.9% 6.7% 6.5% 6.7%

Emerging EconomiesChina 10.4% 9.3% 7.7% 7.7% 7.5%

India 10.3% 6.6% 4.7% 4.4% 5.4%

Brazil 7.5% 2.7% 1.0% 2.3% 1.8%

Turkey 9.2% 8.8% 2.2% 4.3% 2.3%

Russia 4.5% 4.3% 3.4% 1.3% 1.3%

GDP Growth Rates


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Action Plan for 2014 / Corporate Goals

15

Situation Action

Growing investment opportunity set

More new deliveries and increased aircrafttrading activity

Many new aircraft families being

introduced

$1 billion in new investments during 2014

Completed $715 million in Q1 $400 million in additional commitments, although second part of

LATAM deal could slip to 2015

Analyzing new products

Low interest rates

Strong bank and debt capital markets

conditions

Pursue refinancing opportunities Repaid 2006-1 securitization and 9.75% notes

Issued new 5.125% notes; new secured bank debt deals

Expanded and enhanced revolver

Good demand for part-out aircraft

Significant capital inflows into aircraft

market

Part-out sales help address lease roll-off Six end of life aircraft sold in Q1

Expect to sell eight to ten more end of life aircraft during 2014

Pursue opportunistic sales actively

Demand for rental aircraft generally

strong

Address lease placement needs Only two aircraft left for 2014; making progress on 2015

Two major long-term mindedshareholders

Pursue Marubeni synergies and JV opportunities with Teachers

Emerging markets volatility Maintain vigilant asset & risk management approach

Drive Cash ROE and sustainable earnings higher


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Market Overview

16


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Portfolio

AircastlesRisk Management Approach

17

Customer

Transaction

Risk Management is a series of concentric processes

Transaction Process

Credit Analysis

Transaction Analysis

Know Your Customer

Deal Approval

Customer Management

Financial Monitoring

Credit Scoring

Ongoing Dialogue

Annual Reviews

Defined Risk Appetite

Customer Diversification

Geographic Diversification

Asset Diversification

Portfolio Run-off

Portfolio Monitoring

Weekly Watch List

Quarterly Risk Review Annual Risk Update


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Global Airline Profitability

18Source: IATA Fact Sheet March 2014

North American airlines leading

industry in terms of profitability

- Generating almost half of total profits

- Showing continuing growth

Asia-Pacific has resumed growth

- Recovering after sharp 2010-12 drop

- Rate of growth relatively subdued

Europe and Latin America are also

finally showing some profit growth

Overall operating margins remain weak

- Margins remain below 5%

- Doesnt cover cost of capital

Increasing airline profitability

$17.3

$7.5

$6.1

$12.9

$18.7

$0

$5

$10

$15

$20

2010 2011 2012 2013 2014F

IATA Net Profit Projections ($, Billions)

2010 2011 2012 2013E 2014F

North America 4.2 1.7 2.3 6.8 8.6

Europe 1.9 0.3 0.4 1.2 3.1

Asia-Pacific 9.2 4.2 2.7 3.0 3.7

Middle East 0.9 1.0 1.0 1.6 2.2

Latin America 1.0 0.2 (0.2) 0.4 1.0

Africa 0.1 0.0 (0.1) (0.1) 0.1

Global $17.3 $7.4 $6.1 $12.9 $18.7

Operating Margin 4.9% 2.3% 1.8% 3.0% 4.3%


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Interest Rates and Fuel Prices

19

Fuel prices have stabilized since 2011- Albeit at relatively high levels

Largest expense item for most airlines

High fuel prices favor new aircraft models

Susceptible to geopolitical event risk- Hedging can only smoothout short term

volatility

Interest rates at historic low levels- How long will they stay there?

Capital markets access is broader- Non-US carriers issuing EETCs

- New entrants coming into leasing business

Low rates improve aircraft affordability- But have also driven up aircraft prices

Fuel(Jet Fuel $/barrel)Interest Rates(7 year Swap)

Source: BloombergMore stable macroeconomic environment

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2000 2002 2004 2006 2008 2010 2012 20140.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2000 2002 2004 2006 2008 2010 2012


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Demand for Air Travel

20

RPKs will almost triple in a little over 20 years

North America will remain the largest market, but with smaller overall share

Asia-Pacific will grow to same size as Europe

Fastest growth in Middle East at 10%+ CAGR

Latin America and Africa also growing, but at slower rate1. RPK: Revenue Passenger Kilometers.

Center of gravity is shifting to Asia-Pacific

Source: IATA / Airbus.

RPKs1(billions) 2000 % 2022 % CAGR

North America 1.2 36% 2.6 29% 3.5%

Europe 1.0 30% 2.3 26% 3.9%

Asia-Pacific 0.8 24% 2.3 26% 5.0%

Middle East 0.1 3% 0.9 10% 10.7%

Latin America 0.1 4% 0.5 6% 6.1%

Africa 0.1 2% 0.2 3% 5.3%

Industry 3.3 100% 8.9 100% 4.6%


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Aircraft Deliveries

21

Deliveries reflect changing global traffic flows

Source: IATA / Airbus.

Aircraft Deliveries11995-2000

%2015-2020

% CAGR

North America 1,127 35% 1,963 29% 2.8%Europe 1,011 32% 1,633 24% 2.4%

Asia-Pacific 792 25% 1,832 27% 4.3%

Middle East 119 4% 678 10% 9.1%

Latin America 97 3% 506 8% 8.6%

Africa 61 2% 120 2% 3.4%

Industry 3,207 100% 6,732 100% 3.8%

Flow of new aircraft deliveries follows changes in traffic

Asia-Pacific fleet will surpass Europe and be almost as large as North America

Significant aircraft deliveries into the Middle East and Latin America

Growth rate of deliveries lower than that of passenger demand1. Mainline aircraft only.


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2014 2020

Major Aircraft Product Families

New aircraft offerings in nearly all sizes

Seating

Capacity

A380

747-8

787-8

777

A330

737 NGA320

CEO

E-Jets

787-8/9/10A330 (NEO?)

A350

777X

A320

NEO

737

Max

E-2

A380


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Low Cost Carriers

23

In Europe, nearly one short-haul passenger in two is flying with a low cost carrier

In Asia-Pacific, low cost carriers got off to a slower start

- Are catching up with Europe in terms of ASKs1

- Total Asian LCC ASKs would double were penetration to reach European levels

LCCs dominate point-to-point leisure markets, leaving legacy carriers long-haul1.ASK: Available Seat Kilometers.

Source: Seabury.LCCs have transformed short/mid haul markets

25.6%

38.6%

41.5% 41.1%

4.3%

8.6%

13.3%

19.4%

0

50

100

150

200

250

300

350

400

450

2004 2007 2010 2013

ASKs(Bilion)

Europe LCC ASKs Asia LCC ASKs European LCC Share Asian LCC share


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Gulf Mega-Connectors

24

Emirates, Qatar & Etihad doubling market share every two years- Favorable geographic locationat intersection of Europe, Asia & Africa

- Taking advantage of starting with clean sheet of paper

Seriously impacting long haul markets served by European & Asian legacy carriers- Qantas dropped long standing arrangement with BAhas re-trenched east of the Suez Canal

- Air France moved from lobbying for protection to signing code shares

- Etihad taking minority stakes in various carriers to feed Abu Dhabi hub

2.0%

3.2%

4.8%

6.0%

0

50

100

150

200

250

300

350

400

450

2004 2007 2010 2013

ASKs(Billion)

Emirates Qatar Etihad % of Global ASK

Source: Ascend.Gulf carriers transforming long haul market


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Aer Lingus

Legacy Carriers Transformation

Delta Northwest

United

Southwest

American

Continental

AirTran

US Airways

Avianca TACA

LAN TAM

LufthansaAustrian, Swiss,

Brussels

Air France

British Airways

KLM

Iberia

North America Four carriers dominate market

Postmerger elimination of weaker brand

South America Market also down to four carriers

Two independent players left in Brazil

GOL Azul

Europe Three large groups have emerged

No entities have been eliminated

Host of independent players left

SAS

Alitalia

Rest of World No material consolidation to date

National Flag Carriers in many markets

Bilaterals & access rights still drive

business

Many legacy carriers consolidating

TAP

Air Berlin

25


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Air Freight

26

Stagnant demand for air freight- Modal shift from air to surface / on-shoring

- Miniaturization of many consumer products

Supply continues to grow- New passenger aircraft have belly capacity

- Manufacturers continue to produce freighters This imbalance puts pressure on sector

- Load factors low and declining

- Various players forced to exit sector

- Converted 747-400s being parked/scrapped

Freighter market under continued pressure

27%26%

23%

25%24%

22% 22%21%

0

5

10

15

20

25

2006 2008 2010 2012

Ai r Tonnes % Air Value

52.0% 51.6%

49.7%

48.5%

53.9%

51.2%

49.6%49.1%

100

150

200

250

300

350

2006 2007 2008 2009 2010 2011 2012 2013

FTK/ATK(Billions)

Demand (FTK) Supply (ATK) Load Factor

0

50

100

150

200

250

300

350

400

450

2003 2008 2013 2014

Classics/DC-10 747-400/MD-11 747-8/777/A330

Source: Seabury, IATA, Ascend.


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Macro Outlook Impact on Lessors

27

Development Pros Cons

Growth in air travel

Increases demand forleased aircraft

Attracting morecompetitors

Low interest rates Attractive funding Lower lessor yields Lower rents

High fuel price levels Increased airline pressureto re-fleet

Mixed effect on aircraftcompetitiveness

New aircraft models More fleet trade-outopportunities

Increased obsolescencerisk

Increase in new aircraftdeliveries

More financingopportunities

Higher long term risk ofovercapacity

Limited new aircraftavailability

Should result in betterlease terms for lessors

Longer wait for new orderstream opportunities

Improving airline credits/consolidation

Better credit qualitycustomers

Stronger negotiatingleverage for airlines

Change Presents Opportunities


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Investment Strategy

28


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Investment Strategy

Analytically driven and price sensitive

Cash flow minded

Underwrite to hold; trading mindset

Broad approach to sourcing investments

Focus on value-add situations

Sensitive to last off the line / aircraft production life effects

Countercyclical orientation

Require return premium for future capital commitments

29

Savvy aircraft investor with disciplined approach


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Passenger Aircraft Rentals

30

Source: Ascend.

Rents for new wide-bodies have recovered to pre-crisis levels

Rents for new narrow bodies have also improvedthough still below earlier peaks

Gap between 737-800 and A320 is closing

Rents for older aircraft have been relatively stable

Aircraft rental levels improved for new, flat for used

$100k

$300k

$500k

$700k

$900k

$1,100k

$1,300k

$1,500k

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MonthlyRent

New Aircraft

$100k

$300k

$500k

$700k

$900k

$1,100k

$1,300k

$1,500k

2007 2008 2009 2010 2011 2012 2013 2014

MonthlyRent

10-Year Constant Age Aircraft


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Aircraft Valuation Trends

Higher new narrow-body values

Still below pre-crisis peaks; new technology increases downside risks

Appraiser values for mid-aged narrow-bodies dont yet reflect market increases

Older 738 values much higher than A320s

New wide-body values are approaching / exceeding 2008 peak levels

Larger variants outperforming, with 777-300ER doing best; delays & new model backlog has helped

Older wide-body values have not recovered

31

Source: Ascend. Source: Ascend.

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

$45MM

$50MM

199819992000 200120022003 200420052006 200720082009 201020112012 2013

CurrentMarketValue

Narrowbody CMVs

A320-200 New 737-800 NewA320-200 10Y Constant 737-800 10Y Constant

$MM

$20MM

$40MM

$60MM

$80MM

$100MM

$120MM

$140MM

$160MM

$180MM

199819992000 2001 200220032004 2005 200620072008 200920102011 20122013

CurrentMarketValue

Widebody CMVs

A330-300 New 777-300ER New

A330-300 10Y Constant 767-300ER 10Y Constant

Aircraft trading values are increasing


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New vs Used Narrow-Body Analysis

Much of an aircrafts value derives from cash flows and residual after first lease

Conventional book depreciation for late production aircraft may be too optimistic

Mid-aged A320 base value at year 12 (2026) at around part-out value We believe this may have less down-side risk

Entry price a very important consideration

32

Appraised Value Analysis1

Valuation Year 2014 A320

2002 A320

Comments2014 Market Value $40.5 $20.0 12 year old aircraft

value is less than

half of new

2026 Base Value $18.9 $12.6 2026 value for new

A320 very close to

todays value for a12 year old aircraft

1. Full life values. Amounts in millions.

Source: Ascend.

Lower residual risk on todays mid-aged narrow-bodies


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Interest rates are extremely low

Fierce competition for new narrow-body aircraft; lowest barrier to entry type for investors

New wide-body deals have become more competitive

Some attractive returns remain available on mid-age, current technology aircraft

Return levels vary significantly by asset types and by situation

IRR Comparison

33

Investment

Last Peak

2007

Last Trough

2009

Q1

2012

Q1

2014

5 Year US$ Swap Rate 4.2% 2.9% 1.7% 1.8%

New Narrow-body

Unlevered IRRs6-7% 11-12% 5-7% 4-7%

New Wide-body

Unlevered IRRs7-8% 11-13% 8-10% 6-9%

Mid-age Aircraft

Unlevered IRRs8-9% 15-16%* 11-14% 8-11%

This information is for illustrative purposes only and does not include the effect of maintenance cash flows or overhead, and is not intended to illustrate the financial statement

impact in a particular year of aircraft acquired during the course of that year.* Very limited # of deals traded.


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Market Assessment

34

Asset / Situation Commentary

New current generation narrow-bodies

(A320 CEOs & 737 NGs)

Extremely competitive with ample debt availability Monthly rental yields 0.70-0.85%

Last off the line risk for residuals

New current generation wide-

bodies

(A330s & 777ERs)

Increasingly competitive, but less so than narrow-bodies

Monthly rental yields 0.80-0.95%; prices vary broadly

Increasing residual risk given new models

New next generation wide-bodies

(787s & A350s)

Extremely competitive with ample debt availability Monthly rental yields 0.70-0.80%

Will 787-8s hold their value? Will A350 go smoothly?

Mid-aged current generation

aircraft

Less competitive; some debt availability

Monthly rental yields 0.9-1.2%; very broad price ranges

Time intensive; greater re-lease risk

New order aircraft

(current & next generation)

Long wait (5-8 years) unless for end of the line aircraft

Pricing expensive, particularly with escalation

Economic drag from pre-delivery deposits

Future financing terms uncertain


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Increasing New Deliveries

35

Estimate the value of new aircraft deliveries in 2014 is approximately $110 billion

$40-50 billion higher than five years earlier

Shrinking level of ECA involvement

$0

$20

$40

$60

$80

$100

$120

$140

$160

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Estimated New Aircraft Deliveries

($billions)

Source: Boeing.

Growing investor opportunity set


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Aircraft Trading Levels

36

Aircraft trading levels recovering sharply in 2014

Drop was due to limited financing for used aircraft and high book values

Recent recovery in asset values driving more sales going forward Improvement in financing terms

New entrants with lower yield requirements

Increasing portfolio management pressures at large lessors could spur more activity

Source: Ascend.

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Aircraft Transactions

Used Aircraft Transactions


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$3 Billion in Acquisitions Since 2012

Aircraft Lessees

% of Total

Investments

New Wide-Bodies:

7x 777-300ERs

13x A330s

LATAM

Singapore

Virgin Australia

Air Canada

Asiana

Garuda

Thai Airways

EVA

70%

Mid-Aged Narrow-Bodies:

16x 737-800s

8x A320 Family

Alaska

Volaris

Monarch

Jeju

United

Garuda

Jet Airways

Korean

17%

Classic Generation:

7x 767-300ERs

Thomas Cook/ Condor Delta 6%

Regional Jets:

5x E-Jets

Azul 7%

37

Significant investment in newer wide-bodies


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2014 Outlook

$715 million of investments completed in Q1

$400 million in additional investment commitments

Sourcing opportunities:

Lessors: exposure management solution for large players; exits for smaller entities

Airlines: custom tailored solutions with fleet management / exit strategy orientation and

supporting growth at airlines with promising business models

Pipeline remains promising but competition has increased Focus on situations where our team, deal sourcing capabilities and financial flexibility provide

us with an edge

Anticipate we will be most competitive with mid-aged aircraft

Capture opportunities utilizing the benefits for the Ontario Teachers JV

Evaluating new technology aircraft

But acquisition prices / rentals need to be considered relative to current technology aircraft

38


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LATAM 777-300ER Case Study

Purchase and lease back of eight Boeing 777-

300ERs for ~$900 million

LATAM is the largest airline group in South America

Four aircraft built in 2012 closed in Q1 with

leaseback periods averaging 60 months

Four aircraft built in 2008 expected to close when

the existing financing is unwound*

Leases will expire in 2017 and 2018

Deal provides LATAM with a complete 777-300ER

fleet solution

Aircraft will come off lease at a time when few

comparable new generation aircraft anticipated to

be available

39

* Subject to an outside closing date of June 30, 2015.

Why we were successful:

Placement capability & view

Financial flexibility

Ability to invest in size Reliability and speed

Relationship


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Portfolio Management

40


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41

Aircraft Fleet Evolution

$1.45 billion in acquisitions during 2013 and $715 million in Q1:14

Nearly 75% invested in aircraft less than five years old

Weighted average fleet age reduced to 9.1 years

Freighter and classic generation aircraft sales also transforming the fleet

Fleet Distribution as a % of Total Net Book Value

Aircraft Type Model YE 2009 YE 2011 YE 2013 Q1 2014

Current Generation A330s 17% 23% 30% 29%

Mid- & Wide-Bodies 777ERs 2% 5% 12% 20%

Current Generation 737 NGs 18% 17% 18% 17%

Narrow-Bodies A320 CEOs 17% 14% 12% 11%

Freighters 747-400s 27% 22% 17% 15%

Other Freighters 3% 9% 2% 1%

Classic Generation 737s 4% 2% 1%


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Diversified Customer Base

42

65 airline customers across the globe

Largest individual exposure is 9.3% of total NBV

Large, national flag carriers comprise most of our top customers

Top Ten Lessees

% of NBV* Customer Country #Aircraft

> 6% per Customer LATAM Chile 4

South African Airways South Africa 4Thai Airways Thailand 2

3% to 6% per Singapore Airlines Singapore 4

Customer Martinair Netherlands 5

Emirates UAE 2

Garuda Indonesia 4

US Airways USA 11

Jet Airways India 8

Virgin Australia Australia 2

* Percentage of net book value. Figures as of March 31, 2014.


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Broad Geographic Distribution

43

Regional distribution evolving with global trends

Asian customers now 38% of portfolio NBV vs. 20% at YE 2009

European exposure now 28% of total NBV vs. 46% at YE 2009

Airline customers based in 37 countries

Top Ten Countries

Country #Customers % of NBV*

Chile 1 9.3%

Russia 7 6.6%

USA 5 6.1%

Thailand 2 5.7%

South Africa 1 5.5%

Singapore 1 5.4%

Netherlands 3 5.2%

South Korea 3 4.2%

UAE 1 4.1%

Indonesia 1 3.8%

* Percentage of net book value. Figures as of March 31, 2014.

A S l K P f li M


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44

Asset Sales Key to Portfolio Management

We sell aircraft opportunistically, to manage exposure and to exit at the right time

49 aircraft sold since end of 2010

More than $1.1 billion in proceeds

Generating solid gains over time

Gain on sale exceeds $80 million since end of 2010

Aircraft Sold Since Year End 2010

Opportunistic

Sales

2x A330-200 3x A330-200F

4x 737-800

1x 767-300ER 4x 737-400F

Exposure

Management

3x A330-200

1x A330-300

Exit Strategy

1x A319-100

3x A320-200

8x 737-Classic

4x 757-200 9x 767-300ER

1x 747-400

1x A310-300F

4x 737-300F

* Figures as of March 31, 2014.Sold 66 aircraft since inception and generated unlevered IRR of 11.1%1

1 Unlevered Internal Rate of Return; assumes annual SG&A expense equal to 1% of purchase price and excludes taxes and interest expense, interest rate hedging charges andother effects of financing.


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Successfully Using Maintenance Timing in Exit Strategy

Lessees pay for maintenance time burned off leased aircraft

Maintenance cash balance and maintenance value of the metal inversely related

Cash maintenance payments grow in significance as aircraft age

Optimizing lease term and structure makes exit easier

Careful monitoring and active management are also key

Exit opportunity may present itself before scheduled lease-end

Usually best execution when cash balance is high

45

Cash maintenance payment balance

Full-life value

Time

Optimal time to

exit

Run-out value

Maintenance value of metal

C St d S l L f 1999 B i 737 700


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Case Study: Sale vs. Lease of 1999 Boeing 737-700

46

Cash flow drives decision-making

1 Unlevered Internal Rate of Return; assumes annual SG&A expense equal to 1% of purchase price and excludes taxes and interest expense, interest rate hedging charges and

other effects of financing.

Positive net P&L impact

Maintenance revenue

exceeds transactional

impairment

Consider book impacts ofmetal together with lease

Holding period unlevered IRR

expected to be ~10%1

Transactional

Impairment

Maintenance

Revenue

Part-out

Sale of engine 1 $4.04

Sale of engine 2 4.34

Sale of airframe 5.60

Return condition buy-out 0.44

Total $14.44

Lease & Reinvest

Lease transition costs ($0.31)

NPV of rentals 7.27

NPV of mtx payments 2.60

NPV of residual value 3.66

Total $13.22

All $ in millions.

P&L Impact

Net book value $16.42

Sale of equipment 14.00

Net gain/(loss) ($2.42)

Maintenance revenue 5.23

Return condition buy-out 0.44

Total $3.25

All $ in millions.

G d P M i F i ht I t t


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Good Progress Managing Freighter Investments

47

Track record of successful freighter sales

Four in 2013 generated $25 million in gains on sale

Four in Q1:14 for a modest gain

Working to sell two 747-400 converted freighters in 2014

Q1:14 exposure down to 16% of total net book value*

Modest near-term lease placement task

One converted freighter aircraft in 2014

Three freighters in 2015; 2.9% of total NBV

Plan to work exposure down over time

Older freighters are 7% of total net book value

Younger freighter fleet is 9% of total net book value

Five factory-built 747-400s; weighted average remaining lease term of four years

Good customer quality

* Percentage of net book value. Figures as of March 31, 2014. Weighted average remaining lease term is weighted by total NBV.

C i l S P f li P f


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Consistently Strong Portfolio Performance

Portfolio utilization of 98-99% and rental yield of ~14% over past six years

Q1:14 utilization of 98.9% and rental yield of 13.5%

Yield reflecting impact of investments in newer wide-body aircraft with long leases

1. Aircraft on-lease days as a percent of total days in period weighted by NBV.

2. Calculated as lease rental revenue / average NBV of flight equipment for the period. Rental revenue does not include maintenance revenue.

Diversification and active asset management drive results

6%

7%

8%

9%

10%

11%

12%13%

14%

15%

16%

80%

82%

84%

86%

88%

90%

92%94%

96%

98%

100%

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Q30

8

Q40

8

Q10

9

Q20

9

Q30

9

Q40

9

Q11

0

Q21

0

Q31

0

Q41

0

Q11

1

Q21

1

Q31

1

Q41

1

Q11

2

Q21

2

Q31

2

Q41

2

Q11

3

Q21

3

Q31

3

Q41

3

Q11

4

Utilization Yield

Historical Revenue Utilization1and Yield2

48


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Financing Markets Update

49

Very Attractive Aviation Financing Markets


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Very Attractive Aviation Financing Markets

20-year average: 9.84%

% of time below current level: 0.29%

Source: J.P. Morgan High Yield Research.

JPM High Yield Index Yield to Worst (Spread to Worst data in call out boxes )

5%

7%

9%

11%

13%

15%

17%

19%

21%

May-86 May-90 May-94 May-98 May-02 May-06 May-10 May-14

J.P. Morgan Global High Yield Index Yield to Worst All-time high YTW: 20.9%

All-time high STW: +1,925 bps

Previous all-time low YTW (1/5/05): 6.95%

Current YTW: 5.58%Current STW: +437bps

Previous low YTW (5/11/11): 6.75%

Previous all-time low YTW (3/15/13): 5.83%

All-time low YTW (5/8/13): 5.24%

Historical Rate Lows Driving Markets

Rates continue to be very low in historical terms driving the search for yield

Since 1980, 5-year and 10-year Treasury only lower < 10% of the time

Aviation Sector Seen As Good Diversification Play

Both traditional and non traditional lenders expanding lending envelope

50

G i C it l M k t R l I A i ti Fi i


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Ample Access To Bond Markets

Both airlines and lessors have tapped markets aggressively

Secured and unsecured deals across range of instruments (EETCs, ABS, EXIM/ECA

bonds)

Foreign airline EETC issuance ~$3.1 billion vs $5.0 billion + domestic EETCs

Source: Bloomberg, Press Releases.

2,3004,955 6,245

8,910 9,652

3,349

3,712

10,7015,657

10,558

21,498

5,534

1,401

2,859

5,127

5,214

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2009 2010 2011 2012 2013 2014YTD

Unsecured Secured Ex-Im ABS

Growing Capital Markets Role In Aviation Financing

51

Aviation Capital Markets Issuance Hit Record Levels in 2013

Other Market Observations


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Other Market Observations

52

Lessors Take Full Advantage of Robust Capital Market Conditions

Since 2010, $22 billion+ in unsecured issuance by lessors

Asset-based lending less relevant as credit markets fill the gap Decoupling of ratings from trading / issuance levels

Aviation Bank Market Returning

Core aviation lenders (European, Asian and some US banks) stepping up lending

Basel compliance resulting in overweighting of credit factors (vs. asset)

Regional banks motivated by relationship lending adding capacity

Diminishing Export Credit Influence on New Delivery Financing

Volumes dropped from high of 31% ($29.5 billion) to estimated 15% ($16.8billion) in 2014

Combined impact of robust credit markets and higher cost of ECA guarantee

Reducing margins (from high of ~130bps to ~40bps) also a factor

Aircastles Proven Access To Multiple Forms Of Debt Financing


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AircastlesProven Access To Multiple Forms Of Debt Financing

53

Unsecured Bonds

$900 million in two issuances since 2013 ($2.65 billion in total since 2010)

Significant reduction in incremental cost of financing since 2010 (~400 bps)

Significantly expanded institutional investor base

Expanded Unsecured Revolving Credit Facility

$450 million / four year facility

Nine international banks

Multiple Secured Bank Financings

In excess of $700 million in nine separate financings (including Teachers JV

financing)

Six core aviation bank lenders

ECA Bond Market

Refinanced ECA bank facility into bond market

Integrated acquisition and growth capital strategy

Debt Mix and Unencumbered Asset Trend


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Debt Mix and Unencumbered Asset Trend

54

$ millions

$ millions

Debt Mix

Capital structure reshaped given strong conditions and market validation

1. Unencumbered Assets include cash and cash equivalents.

85%

51%

42%

15%

49%

58%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

12/31/09 12/31/10 12/31/11 12/31/12 12/31/13

Secured Debt % Unsecured Debt % Unencumbered Assets

Joint Venture With Ontario Teachers Pension Plan


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Joint Venture With Ontario Teachers Pension Plan

Formed joint venture with Teachers in late 2013

Aircastle owns 30% of the equity, Teachers 70%

Non-recourse debt to fund 65-70% of aircraft acquisitions

Target $1 billion in aviation assets

Aircastle servicing the portfolio

Key benefits and rationale

Enables Aircastle to pursue larger ticket transactions

Partner with sophisticated long-term minded investor

Leverages platforms asset management skills

Helps with concentration risk

55


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Capital Structure and Financial Performance

56

Capital Allocation Framework: Shareholder Return Focused


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Capital Allocation Framework: Shareholder Return Focused

Balanced approach to capital allocation:

1. Acquire incremental assets and prune low

margin assets to drive higher cash returnsover time

$4.0 billion of total aircraft investments from

2011 through Q1:14; NBV of flight equipment

up approximately $1.4 billion

2. Provide regular quarterly return of capitalto shareholders

$157 million of dividends paid from 2011

through Q1:14

3. Opportunistically use share repurchases

Share repurchases of $138.5 million since

2011 at an average price of $11.87 per share

57

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

1/1/2011 1/1/2012 1/1/2013 1/1/2014

Through 05-07-2014, AYRs TSR from 01-01-

2011 was +92.3%

Source: Bloomberg. Total Shareholder Return (TSR) includes gross dividends plus

share price appreciation from January 1, 2009 through the close on May 7, 2014.

Transformed Capital Structure and Reduced Cost of Debt


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Transformed Capital Structure and Reduced Cost of Debt

5.57%

5.80%

5.81%

5.22%

5.37%

4.63%

4.00%

4.20%

4.40%

4.60%

4.80%

5.00%

5.20%

5.40%

5.60%

5.80%

6.00%

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 Q1:14

W

g

e

A

a

n

e

e

R

e

m

o

Unsecured Debt Secured Debt Equity Weighted Average Rate

58

Unsecured Debt is 57% of Total Debt Pro-Forma March, 31, 2014

1. Weightedaverageratereflectsfixedratesforallunsecuredbondsandallfixedratesecureddebt.ForSecuritizationNo.2,reflectsfixedswaprateineffectplusmarginatperiodend.

2. Debtandequitybalancesareasofperiodend.Q1:14debtandequityarepro-formaandreflectstheredemptionof$450millionof9.75%onApril25,2014.

2

1

Strong Revenue and Cash Generation


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Strong Revenue and Cash Generation

$362

$542

$511$531

$580

$632 $661

$679

$339

$544$530

$507

$608$648

$717 $719

$200

$300

$400

$500

$600

$700

$800

2007 2008 2009 2010 2011 2012 2013 LTM

$millions

Lease Rental Revenue Adj. EBITDA

59

Lease revenue growth tracks net growth in flight equipment

Consistent lease rental revenue drives strong cash flow and Adjusted EBITDA

Lease Rental Revenue and Adj. EBITDA2

1. Note: See appendix for reconciliation of GAAP to Non-GAAP figures.

Revenue Composition by Quarter


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Revenue Composition by Quarter

Increasing operating and finance lease revenues reflects fleet growth

Maintenance and other revenue levels are volatile and driven by the timing of

lease expirations

60

$ millions Q2:12 Q3:12 Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14

Operating & Finance Lease Rev $154.6 $163.1 $162.0 $160.5 $162.0 $165.3 $173.3 $178.3

1. Q1:14 maintenance revenue includes $16.4 million of contra maintenance revenue.

$ millions Q2:12 Q3:12 Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:141

Amortization of Net Lease

Discounts and Incentives$2.0 ($6.8) ($6.5) ($7.1) ($8.7) ($9.7) ($6.9) ($6.6)

Maintenance Revenue1 $13.5 $10.9 $16.2 $16.9 $13.2 $12.9 $25.4 $3.0

Other Revenue $2.0 $5.7 $4.9 $5.9 $3.9 $1.6 $0.2 $1.8

P&L Impact of Transactional Impairments Has Been Net Positive


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P&L Impact of Transactional Impairments Has Been Net Positive

What is a transactional impairment?

Typically driven by the sell / reinvest decision at lease expiry

The financial reporting elements flow through different P&L items as follow:

Revenue: MX revenue / LI reversals / Other revenuerelease of liability accounts

Impairment charge: difference between sale value today and NBV of flight equipment

When considered across these various elements, these have had a modest overall

incremental P&L impact

61

$ millions 2012 2013 Q1:14 Total

Maintenance Revenue $20.1 $28.2 $17.2 $65.4

Other Revenue 1.2 1.8 -- 2.9

Transactional Impairments (29.1) (19.7) (18.3) (67.1)

Net P&L Impact $(7.9) $10.2 $(1.1) $1.3

# of Aircraft 5 5 3 13

Cash Returns Illustrate a Consistently Strong Underlying Business


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Cash Returns Illustrate a Consistently Strong Underlying Business

2007 2008 2009 2010 2011 2012 2013 LTM

GAAP ROE 13.2% 9.6% 8.5% 5.0% 9.0% 2.3% 1.9% 0.8%

Cash ROE 13.2% 11.5% 9.9% 10.9% 11.4% 11.8% 12.1% 11.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

ReturnonAverageShareholdersEquity

62

Maintenance revenue, non-cash interest expense and other non-cash charges

contribute to GAAP ROE1volatility

1. Net income as reported, divided by average shareholders equity.

2. Cash ROE = Cash Flow From Operations plus collections on finance leases and gain (loss) on sale of flight equipment less depreciation plus distributions received from our Joint Venture with

Ontario Teachers, divided by average shareholders equity.

3. Includes contra maintenance revenue of $16.4 million in Q1:14.

NOTE: See appendix for GAAP to Non-GAAP reconciliation.

2

1

3

Among Industrys Highest Net Interest Margins


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Among Industry s Highest Net Interest Margins

13.5%

13.9%

13.8%

13.8%

13.6%

13.5%

9.6%

9.9%

9.7%

9.8%

9.4%

9.5%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

Q4:09

Q1:10

Q2:10

Q3:10

Q4:10

Q1:11

Q2:11

Q3:11

Q4:11

Q1:12

Q2:12

Q3:12

Q4:12

Q1:13

Q2:13

Q3:13

Q4:13

Q1:14

Lease Rental Yield Net Interest Margin

63

Stable Lease Rental Yields and Net Interest Margins

1. Lease Rental Yield = Operating lease rental revenue / average NBV of flight equipment for the period calculated on a rolling 12 month basis.

2. Net Interest Margin = Lease Rental Yield minus Interest on borrowings, net of settlements on interest rate derivatives, and other liabilities / average NBV of flight equipment for the period

calculated on a rolling 12 month basis.

1 2

Changing fleet mix over last few years produces slightly lower revenue yields, but

Proactive liability management results in very attractive net interest margins

Cash Earnings Growth Driving Dividends


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Cash Earnings Growth Driving Dividends

$128 $138$119

$143$156

$167

$186$193

$0

$50

$100

$150

$200

$250

2007 2008 2009 2010 2011 2012 2013 LTM

$millions

Cash Earnings Dividends Paid Repurchases

64

Dividends increasing with cash earnings1. Cash Earnings = Cash Flow From Operations plus collections on finance leases and gain (loss) on sale of flight equipment less depreciation plus distributions received from our Joint Venture

with Ontario Teachers.

NOTE: See appendix for GAAP to Non-GAAP reconciliation.

Share repurchases from 2011 - 13 totaled $138.5 million

Average price of $11.87 per share

AircastleSummary


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y

Value oriented strategy responsive to market dynamics

Global customer base well diversified across lessees

Effective portfolio management aligned with proactive risk management

Risk resilient model through cycles: stable cash flow supported by conservative, flexible long-

term capital structure

Strong financial track record: focused on increasing cash returns

Shareholder focused orientation

32 consecutive quarterly dividends

Through Q1:14, nearly $650 million of capital returned to shareholders via dividends and repurchases

World class management team

65

Capitalize on our disciplined and differentiated approach


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Non-GAAP Reconciliation Pages

Appendices

66

Adjusted EBITDA Reconciliation


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j

67

Year Ended December 31,

$ thousands 2007 2008 2009 2010 2011 2012 2013 LTM

Net income $127,344 $115,291 $ 102,492 $65,816 $124,270 $32,868 $29,781 $12,494

Depreciation 126,403 201,759 209,481 220,476 242,103 269,920 284,924 288,951

Amortization of net lease premiums (discounts)and lease incentives

(7,379) (1,815) 11,229 20,081 16,445 12,844 32,411 31,921

Interest, net 92,660 203,529 169,810 178,262 204,150 222,808 243,757 248,868

Income tax provision 7,658 7,541 8,660 6,596 7,832 7,845 9,215 6,514

Discontinued operations, net of income taxes (12,941) - - - - - - -

EBITDA $333,745 $526,305 $501,672 $491,231 $594,800 $546,285 $600,088 $588,748

Mark-to-market (income) expense ofundesignated interest rate derivatives

(1,154) 11,446 (959) 860 848 (597) (4,754) (4,220)

Share based payment expense 6,674 6,529 6,868 7,509 5,786 4,232 4,569 4,748

Impairment of aircraft - - 18,211 7,342 6,436 96,454 117,306 129,370

Contract termination expense - - 4,000 - - 1,248 - -

Adjusted EBITDA $339,265 $544,280 $529,792 $506,942 $607,870 $647,622 $717,209 $718,646

We define EBITDA as income from continuing operations before income taxes, interest expense, and depreciation and amortization. We use EBITDA to assess our consolidated financial and

operating performance, and we believe this non-GAAP measure is helpful in identifying trends in our performance. Using EBITDA assists us in comparing our operating performance on a

consistent basis by removing the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our

operating results. We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that

term is defined in the indenture governing our senior unsecured notes. Adjusted EBITDA is a material component of these covenants.

Reconciliation of GAAP to Non-GAAP MeasuresOperating Cash Flow


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p g

68

($ thousands) 2007 2008 2009 2010 2011 2012 2013 LTM

Net cash provided by operating activities $ 243,236 $ 333,626 $ 327,641 $ 356,530 $ 359,377 $ 427,277 $ 424,037 $ 434,281

Collections on Finance Leases - - - - - 3,852 9,508 10,436

Operating Cash Flow $ 243,236 $ 333,626 $ 327,641 $ 356,530 $ 359,377 $ 431,129 $ 433,545 $ 444,717

Management believes that Operating Cash Flow when viewed in conjunction with the Companys results under US GAAP and the above reconciliation, provide useful information about

operating and period-over-period performance, and provide additional information that is useful for evaluating the underlying operating performance of our business without regard to

periodic reporting elements related to non-cash revenue and expense items and interest rate derivative accounting.

Reconciliation of GAAP to Non-GAAP MeasuresCash Earnings and Cash ROE


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69

Note:AverageShareholdersEquityisthesumofthecurrentperiodendshareholdersequityandprioryearendshareholdersequitydividedbytwo.Managementbelievesthatthecashreturnon

equitymetric(CashROE)whenviewedinconjunctionwiththeCompanysresultsunderUSGAAPandtheabovereconciliation,provideusefulinformationaboutoperatingandperiod-over-period

performance,andprovideadditionalinformationthatisusefulforevaluatingtheunderlyingoperatingperformanceofourbusinesswithoutregardtoperiodicreportingimpactsrelatedtonon-cash

revenueandexpenseitemsandinterestratederivativeaccounting,whilerecognizingthedepreciatingnatureofourassets.

$ in thousands 2007 2008 2009 2010 2011 2012 2013 LTM

Net cash provided by operating activities $ 243,236 $ 333,626 $ 327,641 $ 356,530 $ 359,377 $ 427,277 $ 424,037 $ 434,281

Collections on Finance Leases - - - - - 3,852 9,508 10,436

Gain on Sale of Flight Equipment 11,566 6,525 1,162 7,084 39,092 5,747 37,220 37,138

Less: Depreciation (127,164) (201,759) (209,481) (220,476) (242,103) (269,920) (284,924) (288,951)

Distributions Received from Joint Venture - - - - - - - 388

Cash Earnings $ 127,638 $ 138,392 $ 119,322 $ 143,138 $ 156,366 $ 166,956 $ 185,841 $ 193,292

Average Shareholder's Equity $965,887 $1,203,372 $1,201,702 $1,316,978 $1,373,663 $1,410,117 $1,530,516 $1,644,413

Cash Earnings / Average Shareholder's Equity 13.2% 11.5% 9.9% 10.9% 11.4% 11.8% 12.1% 11.8%

Net Income $127,344 $115,291 $102,492 $65,816 $124,270 $32,868 $29,781 $12,493

Net Income / Average Shareholder's Equity 13.2% 9.6% 8.5% 5.0% 9.0% 2.3% 1.9% 0.8%

Limitations of EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow


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An investor or potential investor may find EBITDA, Adjusted EBITDA , Cash ROE and Operating Cash Flow important measures in

evaluating our performance, results of operations and financial position. We use these non-US GAAP measures to supplement our

US GAAP results in order to provide a more complete understanding of the factors and trends affecting our business.

EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow have limitations as analytical tools and should not be viewed in

isolation or as substitutes for US GAAP measures of earnings. Material limitations in making the adjustments to our earnings tocalculate EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow, and using these non-US GAAP measures as compared to

US GAAP net income, income from continuing operations and cash flows provided by or used in operations, include:

depreciation and amortization, though not directly affecting our current cash position, represent the wear and tear and/or

reduction in value of our aircraft, which affects the aircrafts availability for use and may be indicative of future needs for

capital expenditures;

the cash portion of income tax (benefit) provision generally represents charges (gains), which may significantly affect our

financial results;

elements of our interest rate derivative accounting may be used to evaluate the effectiveness of our hedging policy;

hedge loss amortization charges related to Term Financing No. 1; and

adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our

senior unsecured notes.

EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow are not alternatives to net income, income from operations or cash

flows provided by or used in operations as calculated and presented in accordance with US GAAP. You should not rely on these

non-US GAAP measures as a substitute for any such US GAAP financial measure. We strongly urge you to review the

reconciliations to US GAAP net income, along with our consolidated financial statements included elsewhere in our Annual

Report. We also strongly urge you to not rely on any single financial measure to evaluate our business. In addition, because

EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow are not measures of financial performance under US GAAP and are

susceptible to varying calculations, EBITDA, Adjusted EBITDA, Cash ROE and Operating Cash Flow as presented here, may differ

from and may not be comparable to, similarly titled measures used by other companies.

AYR Investor Day May 2014

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Transcript of AYR Investor Day May 2014