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FLY Leasing Limited FLY Leasing Limited May 2015 Caution Concerning Forward-Looking Statements This presentation contains "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," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for Fly Leasing Limited’s (FLY) future business and financial performance, and for the aviation industry. 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. 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 Reports on Form 6-K. FLY undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise. Page 1 FLY at a Glance Portfolio 127 aircraft, 7.8 years average age (1) Customers 64 airlines in 36 countries Lease Profile Net, Net Leases, 5.3 years average remaining lease term (1) Managed by BBAM World’s 3rd largest lease manager with long, established track record Insider Ownership 8%+ with market value of $45m+ As of and for the year Ended December 31, 2014 Total Revenues $427m Total Assets $4,225m Net Income $56m Cash and Cash Equivalents $338m Earnings Per Share $1.32 Total Borrowings $3,025m Dividends Per Share $1.00 Total Equity $759m Note: As of December 31, 2014. (1) Weighted by net book value as of December 31, 2014. Page 2 Attractive Portfolio of Leased Aircraft Modern Fleet (1) Aircraft Type # of Aircraft % of NBV A320 Family 48 30% A330 4 10% A340 3 4% B737 Family (2) 57 44% B747/757/767 (3) 13 5% B777/B787 2 7% Total 127 100% (1) As of December 31, 2014. FLY has subsequently acquired two A321-211s, two A320-200s and one B737-800, and sold three B737-800s. (2) All Next Generation except for one B737-300 freighter. (3) FLY has signed purchase agreements to sell eight B757s. Page 3 Diversified, Global Customer Base Diversified Lessees – 64 Airlines in 36 Countries Lessee Country % of Revenue (1) Philippines 10% Chile 7% China 4% UK 4% USA 4% USA 3% Region % of Revenue (1) Turkey 3% Europe 37% India 3% India, Asia & South Pacific 35% Turkey 3% North America 11% Thailand 3% Central & South America 11% Middle East & Africa 3% Top 10 Lessees 44% Russia (2) 3% (1) Percentage of total annualized contracted revenue as of December 31, 2014. (2) 1% is associated with two B757s expected to be sold as previously announced. Page 4 FLY Benefitting from Active Fleet Management Strategy is to re-invest in younger aircraft while monetizing older aircraft YE 2012 YE 2013 YE 2014 Avg. Remaining Lease Term (1) 3.2 4.3 5.3 Avg. Age of Fleet (1) 9.4 8.6 7.8 Total Acquisition Costs $60m $642m $952m # of Aircraft Acquired 4 14 22 Avg. Age of Aircraft Acquired (2) 14.1 2.0 2.6 Avg. Age of Aircraft Sold (3) 13.7 13.6 12.6 Flight Equipment $2,617m $3,035m $3,705m Flight equipment grew by 19% on an annualized basis between 2012-2014 (1) Weighted by net book value. (2) At time of acquisition. (3) At time of disposition. Page 5 …And Consistently and Profitably Monetizing Aircraft Proven track record of selling older aircraft at gains throughout the cycle • FLY has sold 30 aircraft • Average age of aircraft sold: 12.5 years • Achieved sales gains of $68m or 14% above the NBVs Summary of Annual Disposition Activity 2008 2009 2010 2011 2012 2013 2014 Annual Gains $11.4m -- $13.4m $9.1m $8.4m $6.3m $18.9m # of A/C Sold 2 -- 4 2 4 10 8 Avg. Age of A/C Sold 12.9 -- 11.0 6.8 13.7 13.6 12.6 Premium to NBV 39% -- 16% 9% 12% 11% 16% Page 6 Executing 2015 Fleet Strategy Acquisitions Dispositions On track to invest $750m Sold three aircraft Q1 • 65% already acquired or identified • Primarily motivated to manage lessee Ample liquidity: exposure • Produced small gain • $338m of unrestricted cash Strong market for selling mid-life aircraft • $543m of unencumbered aircraft • Contracted to sell eight ~17 year old • Attractive financing available B757s Page 7 Nimble and Proactive Approach to Capital Structure Management Cost of Secured Debt (1) Unencumbered Aircraft By Quarter 6.00% $600 $543 5.50% $500 5.12% $403 5.00% $400 4.67% $300 $246 4.50% 4.26% in Millions $ $200 4.04% $121 4.00% $100 $75 3.50% $- 2011 2012 2013 2014 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 In April 2015, re-priced 2012 Term Loan, saving 0.75% on the margin and 0.25% on the LIBOR floor • First year interest savings of ~$4m Flexible use of recourse and non-recourse financing Debt is long-dated – liability structure matches asset characteristics No significant debt maturities until 2018 (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. See Appendix 2. Page 8 Commitment to Enhancing Shareholder Value Declared a total of 30 consecutive quarterly dividends, totaling $7.62 per share Current annual dividend of $1.00 per share Annual Dividends Declared Per Share $1.00 $0.88 $0.84 2012 2013 2014 Page 9 Stakeholder Highlights Execution of fleet growth strategy is improving revenues and bottom line Consistent sales of older aircraft at gains supports book values Portfolio metrics are significantly improved by fleet rejuvenation Strategic approach to liability management Focus on creating value for stakeholders – supported by attractive dividend Page 10 Appendix 1—BBAM Overview BBAM Overview Founded in 1989 World’s third largest lease manager of aircraft with 400+ aircraft under management Acquired by management team in April 2010 Onex purchased a 50% interest in BBAM in December 2012 120 + employees in nine offices worldwide The core management team has been together through several cycles (including 9/11, SARS and financial crisis) BBAM is an asset management company, Leading Aircraft Lessors originating and managing aircraft for two $40 $33.9 $33.6 primary pools of capital: $35 $30 • FLY Leasing Limited (“NYSE: FLY”) $25 • Nomura Babcock & Brown (“NBB”), a $20 wholly-owned subsidiary of Nomura $15 $12.3 $9.4 $8.9 $10 $7.4 $7.3 $6.9 Securities $5.9 $4.8 Fleet Value in $ Billions $ in Value Fleet $5 $0 GECAS AerCap BBAM SMBC BOC AWAS CIT Air Lease ACG Avolon Source: AirFinance Journal, 2014. Page 12 BBAM — Global, Full Service Platform No outsourcing – each driver of aircraft investment returns led by senior BBAM personnel with dedicated teams 120+ professionals in nine offices covering all target regions Dedicated in-house professional staff providing a comprehensive platform DRIVERS OF AIRCRAFT INVESTMENT RETURN Finance, Accounting, Origination & Technical & Asset Corporate Finance Tax, Contracts Legal Re-Marketing Management & Capital Markets & Investor Reporting Steve Zissis Declan Cotter Wesley Dick Rob Tomczak Vince Cannon 17 Professionals 20 Professionals 6 Professionals 62 Professionals 15 Professionals Page 13 A Sample of BBAM’s Airline Relationships Representative Global Reach Americas Asia-Pacific Africa / Middle East Europe Page 14 Appendix 2 – FLY’s Capital Structure Capital Structure & Liquidity Summary FLY’s Capital Structure ($ in millions) 12/31/2014 12/31/2013 Unrestricted cash and cash equivalents $338 $404 Debt O / S Rate (1) O / S Rate (1) Maturity Securitization $546 3.04% $593 3.63% 2033 2012 Term Loan 452 5.19% 475 4.50% 2019 Nord LB Facility 416 4.15% 452 4.15% 2018 CBA Facility 115 4.63% 162 4.91% 2018-2020 Bank Debt Facilities 723 3.89% 490 4.71% 2015-2025 Aircraft Acquisition Facility (2) 122 4.15% 127 4.16% 2018 Unamortized Discounts (39) (45) Total Secured Debt $2,335 4.04% $2,254 4.26% 2020 Notes 375 6.75% 300 6.75% 2020 2021 Notes 325 6.38% -- -- 2021 Unamortized Discounts (11) (8) Total Unsecured Debt $689 6.58% $292 6.75% Total Debt 3,024 4.61% 2,546 4.55% Shareholders' Equity 759 748 Total Capitalization $3,783 $3,294 Net Debt to Equity (3) 3.5x 2.9x Secured Debt to Total Debt 77% 89% Total Debt to Total Capitalization 80% 77% (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. (2) This facility was terminated in March 2015. (3) Represents the ratio of total debt less cash and cash equivalents divided by shareholders’ equity. Page 16 .
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