Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — H1 FY2023 Earnings Presentation
25 slides from Alliance Aviation Services's earnings presentation, Feb 8, 2023
Slide 1: Results Presentation 1H FY2023
Results Presentation Alliance Aviation 1H FY2023 Services Limited 8 February 2023
Slide 2: Contents
Contents 03. KEY MESSAGES 04. E190 DEPLOYMENT ACTIVITY 05. FIVE REVENUE STREAMS 06. OPERATIONAL METRICS 07. FLIGHT HOUR ACTIVITY 08. FINANCIAL SUMMARY 14. DEPLOYING THE E190’S 15. ROCKHAMPTON HANGAR 16. OUTLOOK 18. GROWING CLIENT CONTRACT BASE 19. COMMODITY EXPOSURE 20 & 21. CONTRACT AND WET LEASE F
Slide 3: Key Messages
Key Messages CASH Alliance Aviation Services Limited announces a half Strong cashflow on year result which includes: Underlying profit existing business which before tax of Revenue from operations continued to fund growth $13m 1 of $235m, up 40% • A return to statutory profitability of $9.5 million;
Slide 4: E190 Deployment Activity
Activity Status – December 2022 Status – June 2022 E190 Wet lease activity 18 options exercised with 16 18 options exercised with 13 delivered. delivered. Balance of two aircraft have been Deployment E190 recruitment called up in January 2023. An additional 65 FTE pilots and 76 Staff employed to del
Slide 5: Five Revenue Streams
Five Revenue Contract Revenue Wet Lease Streams RPT Charter Aviation Revenue Revenue Services 1 2 3 4 5 Wet lease activity experienced strong Contract Revenue Wet Lease RPT Revenue Charter Revenue Aviation Services growth in 1HFY2023. Long-term contract Operating Alliance aircraft Regular public tra
Slide 6: Operational Metrics
Operational Detail 31-Dec-22 31-Dec-21 Metrics Aircraft in service – Fokker 1 37 43 Aircraft in service – Embraer 2 25 14 Alliance delivered a strong operational performance. Record Flight Hours – contracted 13,578 13,892 wet lease hours in the last quarter paved the way for positive returns. Flight
Slide 7: Flight Hour Activity
Flight Hours – Jan 22 to Jan 23 Flight Hour 7,000 Activity 6,000 Alliance has experienced strong 5,000 growth in wet lease hours from October 2022. Total flight hours for 4,000 the half year increased by 55% 3,000 2,000 1,000 - Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 No
Slide 8: Financial Summary
Financial Summary For the half-year ended 31 December 2022
Slide 9: Income Statement
. 31 December 31 December % PCP ($ in millions) 2022 2021 Change Actual Actual Income Revenue Contract revenue 152.1 127.9 19% Statement Wet lease revenue Charter revenue 62.0 7.7 14.9 11.0 316% (30%) Observations: RPT revenue 8.1 10.6 (24%) • Wet lease revenue reported the most significant increase
Slide 10: Statement of Financial Position
31-Dec-2022 30-Jun-2022 ($ in millions) % PCP Change Actual Actual Cash 6.0 20.9 (71%) Receivables 74.7 57.1 31% Statement of Inventory Disposal grouped held for 86.4 - 82.4 4.6 5% (100%) Financial Position sale Total current assets 167.1 165.0 1% PP&E & Intangibles 519.6 474.2 10% Observations: Rig
Slide 11: Cash Flow Statement
31-Dec-22 31-Dec-21 ($ in millions) Actual Actual Receipts from customers (inclusive of GST) 262.4 205.6 Cash Flow Payments to suppliers (inclusive of GST) (237.2) (175.7) Net interest (paid)/received (4.7) (3.0) Statement Income tax paid Net cash inflow from operating activities 3.1 23.6 26.9 - Obs
Slide 12: Capital Expenditure
1HFY 2023 2HFY2023 FY2023 ($ in millions) Actual Forecast Forecast Existing fleet maintenance Cash outflows Capital Base maintenance providers 4.1 7.0 11.1 Engine care program/Engine 8.3 12.3 20.6 Maintenance Expenditure Other miscellaneous Operating costs capitalised 0.9 0.6 2.5 0.9 3.4 1.5 Observa
Slide 13: Growth Strategy
Growth Strategy FY2023 and beyond
Slide 14: Deploying the E190's
Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Deploying Number of the E190’s Aircraft in 23 24 30 33 33 Australia 33 E190 aircraft have been acquired and will be deployed as follows: Number of 18 Contracted to Qantas Aircraft in 19 21 25 29 33 under a wet lease contract Service 9 Alliance Fleet 3 Dry Lease 3 I
Slide 15: Rockhampton Maintenance Hangar (Update)
Rockhampton Maintenance Hangar (Update) Hangar Construction Status • The construction of a three bay 10,000 square metre maintenance facility at Rockhampton Airport is nearing completion. • Power connection will occur in March 2023 with practical completion shortly thereafter which will allow for em
Slide 16: Outlook
Alliance retains a positive outlook for the 2023 financial year. Investment in growth has occurred in FY2022 and 1HFY2023. 2HFY2023 is the period of delivering increased profitability. Outlook Contract revenue will continue to grow RPT revenues will continue to decrease during the organically along
Slide 17: Other Information
Other Information For the half-year ended 31 December 2022 17
Slide 18: Growing Contract Client Base
Growing Contract Client Base 1 One contract renewed in the first half of FY2023. One to renew in the second half of FY2023. Previous contract Continuing to pursue new contract charter clients in FY2023. Current contract In negotiation 1 Top 15 FIFO contracts – 1H23 Flight Revenue
Slide 19: Commodity Exposure
Silver / Lead / Zinc 7% Commodity Manganese 8% Gold 25% Exposure Coal Major commodity exposure 7% as a percentage of the top 15 contracted FIFO clients for the half year ended 31 Bauxite December 2022. 3% Copper/ Gold Iron Ore /Uranium 22% 13% Nickel Oil / Gas 10% 5%
Slide 20: Footprint Contract
Darwin - Crew - Line Maintenance Footprint - Operational base - Offices Cairns - Crew Contract - Line Maintenance - Operational base - Offices Townsville - Hangar Alliance is the leading charter - Crew - Line Maintenance operator in Australia. Our - Operational base - Offices Australia wide network
Slide 21: Footprint Wetlease
Darwin - Crew - Line Maintenance - Operational base - Offices Footprint Cairns - Crew Wetlease - Line Maintenance - Operational base - Offices Townsville - Hangar Alliance is the premier wet lease - Crew - Line Maintenance operator for Australia and the - Operational base - Offices Pacific. Rockhamp
Slide 22: ESG Overview
ESG Overview Environmental Social Governance Alliance is committed to embracing Alliance is dedicated to supporting the people The Alliance Board has ultimate responsibility of opportunities to manage and reduce its impact and communities that it services and operates the Company and the systems, po
Slide 23: Operational Performance
Fokker Fleet E190 Fleet Safety Forecast FY2023 Forecast FY2023 Certifications Operational Performance IOSA certification renewal in F100 – 100 Seat Jet Aircraft FY2022 No. in fleet – 24 F70 – 80 Seat Jet Aircraft E190 – 94-114 Seat Jet Aircraft No. in operating fleet – 33 97% No. in fleet - 13 BARS
Slide 24: Disclaimer
Disclaimer Reliance on third party information This presentation was prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance”). Certain market and industry data used in this presentation may have been obtained from research, surveys or studies conducted by third parties, includin
Slide 25: Disclaimer (cont.)
Disclaimer (cont.) Future performance and forward-looking statements This Presentation contains certain “forward-looking statements”. The words “expect”, “anticipate”, “estimate”, “intend”, “believe”, “guidance”, “should”, “could”, “may”, “will”, “predict”, “plan” and other similar expressions are i
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