China Aircraft Leasing Group Holdings Ltd. · HKEX:1848
China Aircraft Leasing — H1 2022 Earnings Presentation
27 slides from China Aircraft Leasing's earnings presentation, August 2022
Slide 1: China Aircraft Leasing Group Holdings 2022 Interim Results
China Aircraft Leasing Group Holdings Limited —— Aircraft Full Value Chain Solutions Provider 2022 Interim Results August 2022 1
Slide 2: Contents
Results Highlights Financial Highlights Operation Highlights Industry Prospects CONTENTS
Slide 3: Strong revenue growth in 1H2022 with strengthening prospects
1.1 Strong revenue growth in 1H2002 with strengthening prospects For the six months ended 30 June 2022: As at 30 June 2022 HK$ 1.89bn 19% 163 aircraft 90% 241 aircraft Steady fleet growth High narrowbody Strong revenue (138 owned+ 25 managed, proportion Third largest orderbook including the two in R
Slide 4: Effective capital management for stable credit profile
1.2 Effective capital management for stable credit profile Steady growth in total assets Steady increase in net assets 2022年6月最新评级结果： (HK$100mn) 70 (HK$100mm) 60.41 600 539.74 60.17 500.29 60 54.16 500 463.93 414.27 436.51 50 400 379.94 40 34.27 37.80 39.70 Ba1 Stable 300 30 Corporate family Outlook
Slide 5: Strong demand recovery will highlight shortage in narrowbody aircraft
1.3 Strong demand recovery will highlight shortage in narrowbody aircraft Full recovery of global aviation market in 2023 Ongoing supply chain disruption drove leasing demand ✓ Affected by supply chain disruptions, aircraft OEM’ production ✓ Major institutions in the industry generally predict that
Slide 6: Ongoing support from CEG
1.4 Ongoing support from CEG Strong shareholder background and strategic support CEG and its member units have strongly supported CALC since the Pandemic ✓ CEG: ✓ Under the epidemic situation, cooperate with the internal resources of the group to strengthen the support for CALC • SOE managed by MOF
Slide 7: Contents
Results Highlights Financial Highlights Operation Highlights Industry Prospects CONTENTS
Slide 8: 1H2022 Results Summary
2.1 1H2022 Results Summary Despite the impact of events such as the Russian-Ukrainian conflict, CALC achieved steady revenue growth in the first half of the year. If the relevant asset write-downs involving Russian airlines are excluded, the profit attributable to shareholders of the Company in the
Slide 9: Steady total revenue growth
2.2 Steady total revenue growth For the six months ended 30 June HK$mn 2022 2021 Change Total leasing income 1,653.8 1,156.0 43.1% Financial Leasing income (1H2022: 49 aircraft vs. 1H2021: 49 aircraft) 284.4 265.3 7.2% Operating leasing income (1H2022: 87 aircraft vs. 1H2021: 55 aircraft) 1,369.4 89
Slide 10: Total operating expenses
2.3 Total operating expenses For the six months ended 30 June HK$mn 2022 2021 变化 Interest expenses （Total interest-bearing debt at the end of June 2022 reached HK$44.2 billion, an increase of 23% from HK$36 billion at the end of June 2021; LIBOR averaged 1.18% in (757.9) (577.1) 31.3% the first half
Slide 11: Diversified financing channels support high liquidity
2.4 Diversified financing channels support high liquidity Interest-bearing debt totaled HK$44.2 billion （as at 30 June 2022） ✓ New/renewed credit line in 1H2022 > 14bn HK$ ✓ Newly issued RMB bonds (in HK$) RMB bonds and medium- term notes 4.2 billion (10%) RMB 1.2bn RMB 1.5bn Corporate bonds Medium-
Slide 12: Interest rate and foreign exchange rate management
2.5 Interest rate and foreign exchange rate management Fixed rent vs fixed rate USD interest risk sensitivity test 44 and RMB aircraft loans Interest rate risk （natural hedged） management Ffoatin rent vs floating 2 rate （natural hedged） Profit (HK$mn) 30 June 2022 Lease realization 46 （natural hedge
Slide 13: Limited impact from Russia-Ukraine conflict
2.6 Limited impact from Russia-Ukraine conflict The lessor affected the least from the Conflict 一 ✓ CALC has less exposure to Russia than other large aircraft lessors: only two owned aircraft are leased to Russian lessees, accounting for less than 2% of the 138 owned aircraft as of June 30, 2022 , a
Slide 14: Contents
Results Highlights Financial Highlights Operation Highlights Industry Prospects CONTENTS
Slide 15: Steady growth in owned fleet, endeavor to increase managed fleet scale
3.1 Steady growth in owned fleet, endeavor to increase managed fleet scale 1H2022： 250 Added 11 aircraft to owned fleet to 163 250 200 220-255 200 13 aircraft 2 aircraft 80-100 delivered sold 163 (3 from order baok, 10 via (delivery schedule affected by the 152 purchase and leaseback) Pandemic) 150
Slide 16: Abundant order book of new generation narrowbody models
3.2 Abundant order book comprising predominantly new generation narrowbody models Ranked third among globallessors in order book size Procure aircraft from the three world-largest OEMs, strong Order narrowbody order book Rank Lessor/asset manager 1 AerCap# book 461 145 66 30 Airbus A320neo Boeing 73
Slide 17: Highly liquid and popular aircraft asset portfolio
3.3 Highly liquid and popular aircraft asset portfolio Fleet utilization rate at different times in the Pandemic Fleet comprised mostly narrowbody models Consistently well above average for large lessors^ of high liquidity and stable value 97.8% 92.9% 91.0% 89.0% 88.7% 88.1% 90.1% 90% Narrowbody pro
Slide 18: Strong lease placement to accelerate global expansion
3.4 Strong lease placement to accelerate global expansion ✓ China is the main market and home base of CALC, accounting for 76.8% of its own fleet ✓ Since the beginning of this year, the overseas aviation market has recovered strongly, and Average rental yield* continues to rise CALC has accelerated
Slide 19: Breakthrough in aircraft aftermarket businesses
3.5 Breakthrough in aircraft aftermarket businesses Continuing leadership in aircraft disassembly, recycling MRO business scope to expand further and sales of commercial aviation components FL ARI obtained the B737NG series aircraft regular inspection and The first diamond-grade aircraft recycling c
Slide 20: Contents
Results Highlights Financial Highlights Operation Highlights Industry Prospects CONTENTS
Slide 21: Industry predicts aviation will return to pre-pandemic levels in 2023
4.1 The industry generally predicts that the aviation industry will return to pre- pandemic levels in 2023 institution Forecast Release date IATA • The International Air Transport Association (IATA) said the recovery in air passenger traffic was accelerating and, on average, the industry could now 2
Slide 22: Global air passenger traffic shows strong signs of recovery
4.2 Global air passenger traffic shows strong signs of recovery year to date ✓ The latest monthly air passenger market data released by the International Air Transport Association (IATA) in June 2022 shows that the total demand for air passenger traffic in June 2022 will continue to remain strong, w
Slide 23: Border restrictions eased, driving demand recovery
Most countries in the world have gradually eased border restrictions, 4.3 driving demand recovery in the aviation industry As countries/regions consider relaxing control policies, the world has gradually entered a stage of further border opening ✓ As at 12 August 2022, a total of 72 countries around
Slide 24: Huge demand for narrowbody aircraft might expose shortage
4.4 Huge demand for narrowbody aircraft might expose shortage Accelering recovery for narrowbody aircraft and rising market share Narrowbody aircraft might be in shortage ✓ Ascend by Cirium reported in June that the number of tracked ✓ Airbus predicts in the "Global Market Forecast 2022" that the wo
Slide 25: China: expected to become the world's largest aviation market
China: expected strong long-term demand to become the world's largest 4.5 aviation market ✓ The Central Government attaches great importance to the supporting role of the civil aviation industry in economic-related industries. In the first half of the year, a number of policies and measures were suc
Slide 26: Continuing increase in lessor penetration
4.6 Continuing increase in lessor penetration ✓ Considering that the production capacity of aircraft manufacturers is still limited in the short term, it is expected that airlines will rely more on lessors to meet the needs of capacity expansion and fleet renewal to continue to improve their balance
Slide 27: Thanks
Thanks 【Disclaimer】 This document may contain statements that constitute "forward-looking statements," including, but not limited to, statements regarding strategic initiatives and executive statements relating to the Company's future business development and economic performance. While these forwar
China Aircraft Leasing Group Holdings — H1 2022 Earnings Presentation on 6ix