Slide 1: 2018 Final Results Review Information Slides
2018 FINAL RESULTS REVIEW INFORMATION SLIDES 13 MARCH 2019
Slide 2: Disclaimer
Disclaimer This presentation contains general background information about the activities of BOC Aviation Limited (“BOC Aviation”), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, a
Slide 3: 2018 Overview
2018 OVERVIEW Pie ©) BOC AVIATION 3
Slide 4: 2018 - A New Milestone
2018 - A New Milestone Record 2018 earnings1 Robust balance sheet1 US$685 million 24% US$18.3 billion 14% Profit before tax Total assets US$620 million 6%2 US$4.2 billion 10% Net profit after tax Total equity US$0.89 6%2 US$6.05 10% Earnings per share Net assets per share Driven by: US$1,726 million
Slide 5: Steady Increase in Net Assets and Earnings Per Share
Steady Increase in Net Assets and Earnings Per Share US$ 7.0 1.0 0.89 0.85 0.8 6.0 0.60 0.6 0.4 5.0 6.05 5.50 0.2 4.87 4.0 0.0 2016 2017 1 2018 Net assets per share (LHS, US$) Earnings per share (RHS, US$) 22% EPS CAGR since IPO All data as at the end of the relevant period Note: 1. 2017 comparison
Slide 6: 25 Years of Success
25 Years of Success • Company celebrated our 25th anniversary in November 2018 • New Chairman Sun Yu joined the Board in February 2019 • Largest aircraft operating lessor headquartered in Asia • Listed on HKEX on 1 June 2016 • Market capitalisation increased 38% to US$5.1 billion as at end-2018 vs U
Slide 7: A Robust Performance in 2018
A Robust Performance in 2018 • Ended 2018 with total fleet of 511 comprising 303 owned, 25 managed and 183 on order • Portfolio utilization of 99.9% • Cash collection rate of 100% • CAPEX of US$4.1 billion • Took delivery of 55 aircraft1 • Added 17 new airline customers • Signed 92 lease commitments
Slide 8: Record NPAT
Record NPAT Steadily increasing core lease rental Fleet growth underpins lift in revenues contribution1 US$ million US$ million 623 1,726 542 1,401 436 1,193 390 406 1,091 988 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Strong PBT Growth Robust NPAT performance US$ million US$ million 685 620
Slide 9: Lease Rental Income Continues to Dominate Revenue
Lease Rental Income Continues to Dominate Revenue Lease rental income consistently c.90% of total revenue and other income US$ million Interest, fee income and others 5.3% Net gain on 1,726 sale of aircraft 1,401 91 5.3% 78 1,543 1,284 Lease rental income 2017 2018 89.4% Lease rental income Net gain
Slide 10: Core Leasing Business Supports Earnings Growth
Core Leasing Business Supports Earnings Growth c.75% of PBT is from core lease rental We have a longer average remaining lease contribution1 term3 Interest, fee income and others Number of years 13% 8.2 8.3 7.5 7.4 7.3 Net gain on sale of aircraft 13% Core lease rental contribution 2014 2015 2016 20
Slide 11: Consistent Net Lease Yield Drives Profitability
Consistent Net Lease Yield Drives Profitability Higher lease rate factor1 reflects increased ... with a higher share of fixed rate debt and proportion of fixed rate leases higher base rates affecting finance expenses3 3.3% 10.8% 2.8% 10.5% 2.5% 10.3% 1.9% 2.0% 9.8% 9.9% 2014 2015 2016 2017 2018 2014
Slide 12: Stable Debt Structure Limits Interest Rate Effects
Stable Debt Structure Limits Interest Rate Effects US$ billion Loans 0.4 Loans (0.7) 0.6 Bonds 1.8 Bonds (0.5) 12.5 Debt 10.9 outstanding 9.7bn since 1 Jan 18 Indebtedness as at Repayment Net RCF New debt Indebtedness as at 1 January 18 borrowings 31 December 18 Close to 80% of debt unchanged from 1
Slide 13: Diversified Portfolio Delivers High Utilization, High Collection Rate
Diversified Portfolio Delivers High Utilization, High Collection Rate Lease portfolio diversified by customer1,2,3 …and diversified by geography1,3 Qatar Airways Americas 9.8% 8.8% EVA Airways 6.4% Chinese Mainland, Hong Kong SAR, Air China Middle East and 4.0% Macau SAR and Africa Aeroflot Taiwan 1
Slide 14: Long-term Contracted USD Leases
Long-term Contracted USD Leases Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3 75.2% By net book value 250 80% 200 60% Average remaining lease term of 8.3 years 34% 24% 150 56% 46% 40% 65% 100 9.2% 20% 66% 76% 50 2.4% 5.3% 44% 54% 1.0% 1.2% 4.2% 35% 0 0% 2019 2020 20
Slide 15: Flexible Capital Structure and Ample Backstop Liquidity
Flexible Capital Structure and Ample Backstop Liquidity Sources of debt1 Outstanding debt amortises over a long term BOC BOC US$ billion 2% 4% 12 ECA2 ECA2 10% 7% 10 Loans Loans 34% 32% 8 6 Notes Notes 4 54% 57% 2 0 2017 2018 2019 2020 2021 2022 2023 2024 and beyond Total loans outstanding Total not
Slide 16: Popular and Fuel-Efficient Fleet
Popular and Fuel-Efficient Fleet Our aircraft portfolio Aircraft type Owned aircraft Managed aircraft Aircraft on order1 Total Airbus A320CEO family 130 8 0 138 Airbus A320NEO family 24 0 62 86 Airbus A330CEO family 12 4 0 16 Airbus A330NEO family 0 0 12 12 Airbus A350 family 6 0 2 8 Boeing 737NG fa
Slide 17: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Average annual CAPEX of around US$4 bn Growing balance sheet since IPO US$ billion US$ billion 18.3 16.0 4.4 4.1 13.4 3.3 3.4 11.4 12.5 2.3 3.1 1.6 2.9 1.5 2.8 2.7 1.5 1.3 1.5 1.0 13.7 15.0 9.9 9.7 10.7 2.8 2.6 1.8 1.9 1.9 2014 2015 2016 2017 2018 2014
Slide 18: Value Driven by Fleet and Committed Lease Revenues
Value Driven by Fleet and Committed Lease Revenues Net book value understates business value Committed future revenues of US$16 billion US$ billion + PV of excess returns US$ billion on equity +US$1.6bn premium of current market value1 ? over aircraft NBV 3.4 1.6 16.0 12.6 15.0 NBV Premium over PV o
Slide 19: Conclusion
Conclusion • Another stellar year • FY2018 PBT up 24% • NPAT increased 6% to US$620 million • ROE of 15.5% - above 12-years average of 15% • Dividend payout ratio maintained at 35% of full year NPAT • Total annual dividends of US$0.3129/share • High liquidity, long-term revenue visibility and sustai
Slide 20: www.bocaviation.com
www.bocaviation.com BOC Aviation Limited 8 Shenton Way #18-01 Singapore 068811 Phone +65 6323 5559 Facsimile +65 6323 6962 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K 20