Slide 1: FY2024 Half Year Results
Equity Ticker LSE: AVAP Bond Ticker LU: AVTCAP FY2024 Half Year Results 1 March 2024 Jeff Chatfield Duncan Scott Iain Cawte Soeren Ferre Ashley Nicholas Executive Chairman Group General Chief Financial Chief Commercial Corporate Finance 1 Counsel Officer Officer Director
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: Overview
avdtion PLC Overview
Slide 4: Snapshot of Avation as at December 2023
Snapshot of Avation as at 31 December 2023 Diversified Fleet and Customer Base 18%/52%/30% 35 15 Airline Customers split of located in 13 Widebody/narrowbody Aircraft Customers /turboprop aircraft by Countries value 6.9 Years 4.6 Years US$1.2bn US$450Mn Weighted Average Total asset value (1) Unearne
Slide 5: Aircraft Portfolio as at December 2023
Aircraft Portfolio as at 31 December 2023 Popular aircraft with low average age Balanced Fleet with Valuable Orderbook and Purchase Rights that By Aircraft Value create a significant growth opportunity Purchase Aircraft Type Fleet Orders Rights Turboprop Aircraft ATR 72-600 16 2 28 Turboprop ATR 72-
Slide 6: Airline Customers
Airline Customers 15 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 A320-
Slide 7: Highlights HY2024
Highlights HY2024 Aircraft Sales • ATR 72-500 repossessed from an airline in India and sold (October 2023) Aircraft Leases • Ex-Virgin Australia ATR 72-600 to be delivered to a new customer in March/April 2024 Aircraft transitions • A320 transitioned to Cebu Pacific in December 2023 7
Slide 8: HY 2024 Results
avdtion PLC HY 2024 Results
Slide 9: HY 2024 Summary
HY 2024 Summary Total Income Operating Profit US$46.3 million US$17.5 million HY 2023: $55.7 million HY 2023: $35.4 million Loss before tax Loss after tax US$9.6 million US$8.8 million HY 2023: profit of $7.1 million HY 2023: profit of $8.7 million Total Assets Net Indebtedness (1) US$1.17 billion U
Slide 10: Debt Analysis
Debt Analysis HY2024 FY2023 Total loans and borrowings (US$ million) 742.8 756.0 Net indebtedness (US$ million) 699.4 731.2 Weighted average cost of debt 6.3% 6.1% Weighted average cost of secured debt 4.7% 4.5% Proportion of fixed/hedged interest rate debt 96.2% 95.8% Net Debt/Total Assets 59.7% 62
Slide 11: Key Ratios
Key Ratios Comparative Ratios HY2024 FY2023 Net asset value per share (US$) (A) $3.25 $3.44 Net asset value per share (£) £2.56 £2.71 Lease yield (B) 10.4% 9.7% Admin expense (ex warrants)/Revenue (C) 9.1% 8.3% Credit Ratios Debt/Equity (D) 3.2X 3.1x Net debt/EBITDA 9.1X 8.0x Debt/Total assets (E) 6
Slide 12: Liquidity Update as at Dec 2023
Liquidity Update as at 31 Dec 2023 HY2024 FY2023 Maturities and loan covenants: Total cash $150.1m $116.9m Loan maturities typically match lease durations Unrestricted $43.5m $24.8m All debt current & covenants in Restricted $106.6m $92.1m compliance Finance lease $43.6m $45.1m Unsecured Bonds:
Slide 13: Liability Structure & Loan Maturities
Liability Structure & Loan Maturities Loan maturities 500 457 450 400 350 $m 300 342 250 200 150 100 87 41 67 - 59 8- 46 - 10 50 - 30 75 87 18 20 49 58 - 46 - - 30 18 20 - 2024 2025 2026 2027 2028 2029 2030 2031 Secured loans Warehouse loan Unsecured 13
Slide 14: Lease Expiry
Lease Expiry Chart Lease Expiry 9 8 1 Number of Aircraft 7 1 6 5 1 4 4 6 4 1 1 3 2 2 3 1 2 2 1 1 1 1 1 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 ATR 72-500 ATR 72-600 A 320-200 A 321-200 A220-300 A 330-300 777-300ER 14
Slide 15: Market outlook & Strategy
avdtion PLC Market outlook & Strategy
Slide 16: FY2024 Focus
FY2024 Focus • Asia market is rebounding strongly and is our core market • Continue to place ATR aircraft enjoying strong market value growth • Implement measures to optimise capital structure, repurchase bonds and reduce debt cost • Make progress in reducing fleet CO2 emissions 16
Slide 17: Market – International passengers
Market – International passengers Air passenger market – December 2023: World RPK ASK Share Dec23 Dec23 % yoy yoy Source: IATA Approx 76% of Avation’s fleet are leased in Asia 17
Slide 18: ATR - Market value recovery
ATR - Market value recovery ATR72-600 and 737 Max 8 have strongest market value growth from mid 2019 to Jan 2024: Source: IBA ATR’s have seen strong value recovery. 18
Slide 19: Outlook – Reducing debt cost
Outlook – Reducing debt cost Powell says Fed still expects to make 3 interest rate cuts this year Source: Financial Times – 5 February 2024 Avation is focused on reducing our debt cost as interest rates are considered to have peaked and are expected to reduce this year. 19
Slide 20: Outlook – carbon cost
Outlook – carbon cost The EU carbon price per tonne has risen about 6x in 10 years to EUR 57 in Feb’24: Source: Euractiv (By 2040, so 6.7x in the next 16 years) As the Carbon Price rises, low emission aircraft (ATR, A220) will become much more attractive. 20
Slide 21: Strategy – ATR aircraft
Strategy – ATR aircraft Avation considering: • Purchase rights exercise • Extending orderbook skyline Avation remains focused on fuel efficient, low Co2 emission aircraft opportunities to support sustainable aviation. 21
Slide 22: Conclusion
Conclusion Aviation sector bounce back, especially Asia Aircraft values are rising again Take further steps to improve liquidity Strategic alignment with low emissions Positioned for market and fleet growth 22
Slide 23: Question & Answer Section
Question & Answer Section Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Duncan Scott Iain Cawte Soeren Ferre Ashley Nicholas Executive Chairman Group General Counsel Chief Financial Officer Chief Commercial Officer Corporate Finance Director