Avation Plc · LSE:AVAP
Avation — Corporate Update (November 2023)
21 slides from Avation's corporate update, November 2023
Slide 1: Corporate Update Nov 2023
Equity Ticker LSE: AVAP Warrants Ticker LSE:AVAW Bond Ticker LU: AVTCAP Corporate Update Nov 2023
Slide 2: Important Notice
Important Notice Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect the Company’s current intentions, plans, expectations, assumptions and beliefs about future ev
Slide 3: Snapshot of Avation
Snapshot of Avation Diversified Fleet and Customer Base 18%/52%/30% Customers 35 16 Airline split of located in 13 Widebody/narrowbody Aircraft Customers Countries /turboprop aircraft by value 6.8 Years 4.8 Years US$1.2Bn US$464Mn Weighted Average Total asset value (2) Unearned contracted Weighted A
Slide 4: Aircraft Portfolio
Aircraft Portfolio Balanced Fleet with valuable orderbook and Purchase Rights that By Value create significant opportunity Purchase Aircraft Type Fleet Orders Rights Turboprop Aircraft Turboprop ATR 72-600 16 2 28 30% Widebody ATR 72-500 4 - - 18% Narrowbody Aircraft A321-200 6 - - A320-200 2 - - A2
Slide 5: Avation PLC – Core Competencies
Avation PLC – Core Competencies Since inception in 2006 • Purchasing : Total 73 Aircraft purchased with US$1.9 billion invested • Leasing : Executed 81 Leases with 31 Airlines crossing 20 Countries • Financing : US$1.9 billion debt raised • Sales : 38 aircraft sold • Transitions : 13 aircraft transi
Slide 6: Avation PLC – Core Competencies
Avation PLC – Core Competencies Outcome • Total number of aircraft delivered 69 • Proportion of aircraft traded 54% • Net Asset Value per share FY2007 was US$0.42 to HY2023 was US$3.42 • Total Dividends $0.43 • 30 Nov ’23 - Rent Arrears 18% turboprop, 82% narrowbody and 0% widebody 6
Slide 7: Airline Customers
Airline Customers 16 Airline Customers in 13 Countries Airline Aircraft Number Vietjet A321-200 6 Air Baltic A220-300 5 Hevilift ATR 72-500 3 Mandarin ATR 72-600 3 Alliance Air ATR 72-600 2 Braathens ATR 72-600 2 Danish Air Transport ATR 72-600 2 US Bangla ATR 72-600 2 Cebu Pacific ATR72-600 1 Cebu
Slide 8: Market Recovery
Market Recovery Global capacity expected to be within 1% of 2019 volume globally by the end of September 2023 Source: Cirium 8
Slide 9: Market Growth
Market Growth Recovering steadily and above pre-Covid levels in Europe, North America Source: ATR, OAG at 20 Apr 2023 9
Slide 10: ATR – Program
ATR — Program avdation PLC A Successful Program +200 100 1,800 1,600 36M +1B operators countries aircraft sold deliveries flights passengers planet's most nette regions, Jur purpose is to deliver air agen innovative, sust jinable and. modern way.
Slide 11: ATR – Customer Base
ATR — Customer Base avdation PLC A diverse customer base... #Operators: SB @ +200 orcrarors HAP 100 connie Various operations: Regional Airlines, Network Carriers, LCC, ao eae Charters, Cargo, VIP, Special Mission AATIR Family Family Dash 11
Slide 12: ATR – Replacement Opportunity
ATR – Replacement Opportunity 12
Slide 13: ATR – 100% SAF certified by 2025
ATR – 100% SAF certified by 2025 Lowering CO2 emissions meets upcoming ESG requirements 13
Slide 14: Green Finance Award
Green Finance Award Avation first lessor commercial aircraft Green Loan 14
Slide 15: Orderbook and Purchase Rights
Orderbook and Purchase Rights Firm Aircraft Orderbook • Two ATR72-600 with 2024 delivery (PDP’s paid) • With low CO2 PW 127XT-M engines • IBA Dec 2022 Market Value is $21.34 million per aircraft Purchase rights • 28 ATR72-600 aircraft with PW 127XT-M engines • Purchase rights run to June 2027 15
Slide 16: Aircraft Values Rising
Aircraft Values Rising Narrowbody base value recovered, widebody values improving Source: Cirium In times of inflation, aircraft values rise 16
Slide 17: Long Term Debt
Long Term Debt 5-10 year base rates support longer lease terms our leases are 100% hedged 17
Slide 18: Debt Finance Comparisons
Debt Finance Comparisons Lessor Last bond Recent bond Issue date Tenor Issue Yield % Air Lease Mar-23 5yr 6.10 Aviation Capital Group Apr-23 5yr 6.44 TrueNord Apr-23 5yr 8.15 Macquarie AirFinance Apr-23 5yr 8.38 SMBC May-23 5yr 5.49 Avolon May-23 5yr 6.62 Sources: BBG, AirFinance Journal Senior debt
Slide 19: FY2024 Focus
FY2024 Focus • At 100% fleet utilisation • ATR turboprops have lower rent arrears compared to narrowbodies. • ATR turboprops at the forefront of reducing CO2 emissions • Interest rates hedging is effective 19
Slide 20: Conclusion
Conclusion Leverage core competencies Organic growth with market recovery Harness ATR innovation - low CO2 emissions Inflation upward pressure on aircraft values De-risk rising rates – 100% hedging 20
Slide 21: Avation PLC
Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Iain Cawte Ashley Nicholas Duncan Scott Executive Chairman Chief Financial Officer Corporate Finance Director Group General Counsel jeff@avation.net iain@avation.net ashley@avation.net duncan@avat