Slide 1: 2020 Final Results Review
2020 FINAL RESULTS REVIEW MARCH 2021
Slide 2: Disclaimer
Disclaimer This presentation contains information about BOC Aviation Limited (“BOC Aviation”), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solic
Slide 3: 2020 Overview
2020 OVERVIEW ©) BOC AVIATION
Slide 4: 2020: Another Year of Unbroken Profitability
2020: Another Year of Unbroken Profitability Resilient core business1 Robust balance sheet1 US$2,054 million 4% US$23.6 billion 19% Total revenues and other income Total assets US$1,355 million 13% US$5.1 billion 12% Operating cash flows net of interest2 Total available liquidity US$715 million 3% U
Slide 5: FY2020 NPAT Drivers
FY2020 NPAT Drivers Year-on-Year change (US$ million) Growth in revenues Changes in costs Changes in exceptional (+$78m) (-$84m) items (-$206m) 78 9 (90) 80 (67) (27) 10 (109) (19) (79) 20 702 696 510 Core leasing business remains strong Due to rounding, numbers presented may not add up precisely to
Slide 6: Strategic Investment Supported By Competitive Financing
Strategic Investment Supported By Competitive Financing • Ended 2020 with total fleet of 553 • Comprised 358 owned, 40 managed and 155 on order • Average fleet age of 3.5 years1 • Average remaining lease term of 8.6 years1 • Took delivery of 54 aircraft2 • Added three new airline customers • Sold 12
Slide 7: Key Success Factors in a Challenging Environment
Key Success Factors in a Challenging Environment • We had a downturn plan • Key was to execute rapidly • Experienced management team has successfully led the Company through multiple cycles • Started 2020 with US$4.6 billion in total available liquidity and grew it to over US$5 billion by year-end •
Slide 8: How We Invest
How We Invest Number of aircraft delivered, purchased and sold Global European Opportunistic PLB Financial Covid-19 Crisis Crisis acquisitions in the down cycle 41 19 24 13 16 (3) 9 14 41 45 27 16 7 4 6 22 18 17 14 31 21 43 5 58 61 6 5 44 48 50 (5) 12 41 27 31 17 22 22 7 14 11 (12) (12) (3) (10) (10
Slide 9: Stable Performance
Stable Performance Fleet growth underpins growth in revenues Rising core lease rental contribution1 US$ million US$ million 1,976 2,054 695 715 662 1,726 555 1,401 450 1,193 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Cumulative NPAT of US$2.8 billion since 2016 Rising operating cash flows net
Slide 10: Lease Rental Income Continues to Dominate Revenue
Lease Rental Income Continues to Dominate Revenue Lease rental income consistently over 85% of total revenues and other income Interest, fee income and US$ million others 1,976 2,054 Net gain on sale of 10.9% 138 226 134 44 aircraft 2.2% 1,704 1,784 2019 2020 Lease rental income Net gain on sale of
Slide 11: Core Leasing Business Supports Growth
Core Leasing Business Supports Growth More than 70% of PBT1 is from core lease We have a long average remaining lease rental contribution2, net of costs term5 Others Number of years Interest and fee 7% 8.4 8.6 income3 8.2 8.3 14% 7.3 Net gain on sale of aircraft Core lease rental 7% contribution, ne
Slide 12: Leasing Model Remains Resilient
Leasing Model Remains Resilient Lease rate factor1 remains above 10% Reduced cost of debt2 10.3% 10.5% 10.8% 10.7% 3.6% 10.0% 3.3% 3.2% 2.8% 2.5% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Lower net lease yield3 impacted by 4Q 2020 aircraft deliveries by quarter deliveries Number of aircraft
Slide 13: Globally Diversified Portfolio
Globally Diversified Portfolio Lease portfolio diversified by customer1,2 …and increasingly diversified by geography1,3 Qatar Airways Americas 8.6% 14.6% United Airlines Chinese Mainland, 6.2% Hong Kong SAR, Macau SAR and Cathay Pacific Middle East Taiwan4 5.4% and Africa 29.3% 11.6% Air China 4.6%
Slide 14: Robust Operating Cash Flows Net of Interest
Robust Operating Cash Flows Net of Interest Operating cash flows net of interest1 for Operating cash flows net of interest1 FY2020 US$ million • 2020 operating cash flows net of interest (471) remained robust despite challenging operating environment 1,826 1,355 • Up 13% compared with 2019 Net cash
Slide 15: Diverse Funding Channels Utilised in 2020
Diverse Funding Channels Utilised in 2020 Sources and Uses of Cash US$ million Sources Uses 387 (4,641) 505 1,650 5,138 2,900 Undrawn committed (1,130) 4,730 credit 1,355 facilities (628) (242) 252 Cash and 408 cash equivalents Cash and Net cash1 Bond Bank loans RCF Asset sales Capex Bond Loan Divid
Slide 16: Stable Debt Structure
Stable Debt Structure US$ billion Loans 1.7 Loans (0.6) 0.5 Bonds 2.9 Bonds (1.1) 16.8 Debt 13.5 11.8bn outstanding 11.8 11.8 since 1 Jan 20 Indebtedness as at Repayment Net RCF borrowings New debt Indebtedness as at 1 January 2020 31 December 2020 70% of debt unchanged from 1 January 2020 and debt
Slide 17: Flexible Capital Structure and Ample Backstop Liquidity
Flexible Capital Structure and Ample Backstop Liquidity Sources of debt1 Outstanding debt amortises over a long term US$ billion BOC 3% ECA 2 BOC 2 12% ECA 16 Loans 5% Loans 2% 14 26% 22% 12 10 8 Bonds Bonds 6 66% 64% 4 2 0 2019 2020 2021 2022 2023 2024 2025 2026 and Loans Notes beyond Near term deb
Slide 18: Popular and Fuel-Efficient Fleet
Popular and Fuel-Efficient Fleet Our aircraft portfolio Aircraft type Owned aircraft Managed aircraft Aircraft on order1 Total Airbus A320CEO family 112 15 0 127 Airbus A320NEO family 68 0 58 126 Airbus A330CEO family 12 3 0 15 Airbus A330NEO family 4 0 2 6 Airbus A350 family 9 0 0 9 Boeing 737NG fa
Slide 19: Steadily Growing Balance Sheet and Aircraft Fleet
Steadily Growing Balance Sheet and Aircraft Fleet Growing balance sheet US$ billion 23.6 18.3 19.8 4.7 16.0 3.0 13.4 2.3 3.3 2.7 16.8 18.9 13.7 15.0 10.7 2016 2017 2018 2019 2020 1 Aircraft NBV Other assets Disciplined increase in fleet size Number of owned aircraft 358 303 317 287 246 2016 2017 201
Slide 20: Long Term Leases Enhance Revenue Visibility
Long Term Leases Enhance Revenue Visibility Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3 By net book value 300 100% 81.1% 250 80% 200 24% 17% 13% Average remaining lease term of 8.6 years 60% 46% 34% 150 40% 100 83% 87% 66% 76% 50 4.9% 6.8% 20% 54% 1.8% 1.7% 3.7% 0
Slide 21: New Investments Drive Growing Committed Lease Revenues
New Investments Drive Growing Committed Lease Revenues Committed future lease revenues of Sustained annual capital expenditure since IPO US$19 billion US$ billion US$ billion 4.4 4.6 4.9 Scheduled to be delivered 4.1 1 3.2 3.5 2.9 1.6 1.6 1.5 0.5 1.0 2.8 3.0 3.5 18.9 2.6 2.7 1.9 14.0 Owned portfolio
Slide 22: Conclusion
Conclusion • Resilient performance achieved in a challenging environment • Record high revenues and other income of over US$2 billion • Operating cash flows net of interest paid rose 13% to US$1.4 billion • 27th year of consecutive profitability with cumulative profit of US$4.9 billion • Net profit
Slide 23: Appendices
APPENDICES ©) BOC AVIATION 23
Slide 24: The BOC Aviation Journey
The BOC Aviation Journey Ownership Total assets SALE established with 50:50 joint US$ billion 1993 ownership between Singapore Airlines and Boullioun Aviation Services Temasek and GIC each became 1997 14.5% shareholders 1997 >0.3 2000 >1 Bank of China acquired 100% of 2006 >3 2006 SALE on 15 Dec 200
Slide 25: BOC Aviation – Who Are We?
BOC Aviation – Who Are We? Top 5 global aircraft Total assets of 27th year of Industry leading operating US$23.6bn profitability performance lessor • The largest based • Aircraft net book • Consistently • Average ROE of in Asia, by value value of profitable since c.15% since 2007 of owned fleet US$1
Slide 26: Globally Diverse Management Team
Globally Diverse Management Team Robert Martin Zhang Xiaolu Steven Townend David Walton Deng Lei Paul Kent Managing Director & Vice-Chairman & Deputy Managing Deputy Managing Chief Commercial Chief Commercial Chief Executive Deputy Managing Director & Chief Director & Chief Officer (Asia Pacific Off
Slide 27: Core Competencies – BOC Aviation Track Record
Core Competencies – BOC Aviation Track Record Since inception in 1993: • Purchasing More than 880 aircraft purchased totalling more than US$50 billion • Leasing More than 1,050 leases executed with > 160 airlines in 57 countries and regions • Financing More than US$34 billion in debt raised since 1
Slide 28: Covid-19 Vaccine Rollout Will Differentiate Cross-Border Traffic Recovery
Covid-19 Vaccine Rollout Will Differentiate Cross-Border Traffic Recovery Cumulative Covid-19 vaccination doses administered per 100 people1,2,3 Israel United Arab Emirates United Kingdom United States EU Canada Brazil Russia China India 0 20 40 60 80 100 Around 292 million doses of Covid-19 vaccine
Slide 29: Industry Update
Industry Update Rising utilisation rates for younger BOC Aviation targeting most robust markets narrowbody aircraft1 1st Jan 2020 – 5th March 2021 • Delivered 10th A320NEO to Air China 100% Age 0-12: 83% • Signed PLBs with Wizz and TUI for 13 aircraft to 80% Age 13-18: 69% tap Eurozone leisure traff
Slide 30: 2020 ESG Highlights
2020 ESG Highlights Environmental 100% carbon neutral for direct emissions All used IT equipment recycled 100% latest technology aircraft in the US$2.5 million investment in new orderbook technology and digital initiatives Digital Workplace Transformation to 3.5 years average aircraft fleet age redu
Slide 31: www.bocaviation.com
www.bocaviation.com BOC Aviation Limited 8 Shenton Way #18-01 Singapore 068811 Phone +65 6323 5559 Facsimile +65 6323 6962 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K 31