Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — H1 FY2022 Earnings Presentation
26 slides from Alliance Aviation Services's earnings presentation, Feb 9, 2022
Slide 1: Results Presentation 1H FY2022
Alliance Aviation Services Limited Results Presentation 1H FY2022 9 February 2022
Slide 2: Contents
Contents 03. KEY MESSAGES 04. CONTINUED E190 DEPLOYMENT ACTIVITY 05. FIVE REVENUE STREAMS 06. OPERATIONAL METRICS 07. FINANCIAL SUMMARY 15. DEPLOYING THE E190’S 16. ROCKHAMPTON HANGAR 17. GROWTH STRATEGY 18. OUTLOOK 20. GROWING CLIENT CONTRACT BASE 21. COMMODITY EXPOSURE 22 & 23. CONTRACT AND WET LE
Slide 3: Key Messages
Key Messages CASH Alliance Aviation Services Limited announces a Maintain cash generation half-year result which includes: Underlying profit which has funded growth before tax of Revenue from operations $20.7.m 1 of $171.2m, up 11% • Robust and increasing FIFO earnings; • Strong underlying operating
Slide 4: Continued E190 Deployment Activity
Continued Activity Contracted wet lease Status Qantas has wet lease options for 18 E190 aircraft (10 of which have E190 activity been exercised). COVID-19 has impacted negatively on the planned utilisation and deployment of these aircraft and the forecast Deployment significant revenue generation ha
Slide 5: Five Revenue Streams
Five Revenue Contract Revenue Wet Lease Streams RPT Charter Aviation Revenue Revenue Services 1 2 3 4 5 Contract revenue continues to experience Contract Revenue Wet Lease RPT Revenue Charter Revenue Aviation Services growth and underpins the Long-term contract Operating Alliance aircraft Regular pu
Slide 6: Operational Metrics
Operational Detail 30 December 2021 31 December 2020 Metrics Aircraft in service – Fokker 1 43 43 Aircraft in service – Embraer 2 13 - Alliance consistently delivers strong operational performance and has Flight Hours – contracted 13,892 13,106 now built a platform to substantially increase operatio
Slide 7: Financial Summary
Financial Summary For the half year ended 31 December 2021
Slide 8: Statutory to Underlying PBT Bridge
Statutory to Underlying PBT Bridge Alliance Aviation Services Limited 1HFY2022 Results Presentation 8
Slide 9: Income Statement
1HFY2022 1HFY2021 % PCP ($ in millions) Actual Actual Change Revenue Income Contract revenue Wet lease revenue 127.9 14.9 105.8 0.6 21% 2,383% Statement Observations: Charter revenue RPT revenue 10.6 11.0 29.3 16.5 (64%) (33%) • Record contract revenues from existing clients and the full half- Aviat
Slide 10: Statement of Financial Position
31 December 2021 30 June 2021 ($ in millions) % PCP Change Actual Actual Cash 13.0 36.2 (64%) Receivables 51.1 50.9 (0%) Statement of Inventory 86.4 86.5 (0%) Total current assets 150.5 173.6 (13%) Financial Position PP&E & Intangibles Right of use assets 455.5 27.0 407.1 28.0 12% (4%) Observations:
Slide 11: Statutory to Underlying Operating Cashflow
Statutory to Underlying Operating Cashflow Alliance Aviation Services Limited 1HFY2022 Results Presentation 11
Slide 12: Cash Flow Statement
($ in millions) 1HFY2022 1HFY2021 Receipts from customers (inclusive of GST) 205.6 170.9 Payments to suppliers (inclusive of GST) (175.7) (122.8) Cash Flow Net interest (paid)/received (3.0) (0.6) Statement Income tax paid Net cash inflow from operating activities 26.9 - 47.5 - Observations: Net pay
Slide 13: Capital Expenditure
1HFY2022 2HFY2022 FY2022 ($ in millions) Actual Forecast Forecast Existing fleet maintenance Cash outflows Capital Base maintenance providers Engine care program/Engine Maintenance 4.6 7.8 4.6 6.6 9.2 14.4 Expenditure Other miscellaneous Operating costs capitalised 1.0 1.3 0.3 1.5 1.3 2.8 Observatio
Slide 14: Growth Strategy
Growth Strategy 2HFY2022 and beyond
Slide 15: Rockhampton Maintenance Hangar
Rockhampton Maintenance Hangar 1 The Hangar • $60 million project to be built at Rockhampton Airport. • 3 bay hangar to accommodate Code C aircraft (up to A321XLR). • The creation of 100 jobs during construction and ongoing employment for over 100 employees once fully operational. • Full export repl
Slide 16: Deploying the E190's
December March June September December Deploying 2021 2022 2022 2022 2022 the E190’s Number of Aircraft in 15 22 26 30 32 32 E190 aircraft have been acquired Australia Number of Aircraft in 11 17 26 30 32 Service Annualised Hours ~33,000 ~51,000 ~78,000 ~90,000 ~96,000 Generated Alliance Aviation Se
Slide 17: Growth Strategy
Growth Strategy FY21: Acquisition & Plan 1HY22: Set the Foundation Future: Significant COMPLETE COMPLETE Growth Opportunity • Contracts executed to acquire of • Entry to Service Checks on 18 • 32 E190 aircraft with ~ 32 E190 aircraft out of the 32 E190’s 105,000 annualised flight hour • Acquisition
Slide 18: Outlook
Alliance retains a positive outlook for the 2022 financial year in line with exponential growth from the 2023 financial year as the additional aircraft are deployed. Outlook Contract revenue will continue to grow Alliance continues to invest in both fleet and crew to organically, with three renewals
Slide 19: Other Information
Other Information For the half-year ended 31 December 2021 19
Slide 20: Growing Contract Client Base
Growing Contract Client Base 1 No contracts were due for renewal in 1HFY22. 3 due in 2HFY22. 1 Alliance Aviation Services Limited 1HFY2022 Results Presentation Top 15 contracts based off 1HFY2022 revenue 20
Slide 21: Commodity Exposure
Bauxite 2% Metallurgical coal 7% Commodity Exposure Gold 23% Iron Ore 25% Major commodity exposure as a percentage of 1HFY2022 revenue by the top 15 contracted clients. Zinc 2% Silver / Lead / Zinc 4% Nickel Copper/ Gold /Uranium 9% 17% Oil / Gas Manganese 5% 6% Alliance Aviation Services Limited 1H
Slide 22: Footprint Contract
Darwin - Crew - Line Maintenance - Operational base Footprint Cairns - Offices - Crew - Line Maintenance Contract - Operational base - Offices Townsville - Hangar Alliance is the most successful - Crew - Line Maintenance charter operator in Australia. Our - Operational base - Offices Australia wide
Slide 23: Footprint Wetlease
Darwin - Crew - Line Maintenance - Operational base Footprint Cairns - Offices - Crew - Line Maintenance Wetlease - 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 24: Operational Performance
Fokker Fleet E190 Fleet Safety 1HFY 2022 1HFY 2022 Certifications Operational Performance IOSA certification renewal in F100 – 100 Seat Jet Aircraft FY2022 No. in fleet – 24 E190 – 94-114 Seat Jet Aircraft Number in operating fleet – 13 97% Settled & yet to enter service - 19 BARS Gold standard O F7
Slide 25: 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 26: 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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