Boc Aviation Limited · HKEX:2588

Boc Aviation — HSBC 10th Annual Asia Credit Conference 2026

34 slides from Boc Aviation's conference presentation, June 2026

  1. Slide 1: HSBC 10th Annual Asia Credit Conference

    HSBC 10th Annual Asia Credit Conference JUNE 2026

  2. Slide 2: Recent Developments

    Recent Developments • Agreed PLB for three Boeing 737-8200 with Akasa Air • 813 aircraft and engines owned, managed • Delivered ten new aircraft and on order • Signed 20 lease commitments • 5.1 years average fleet age1; 7.7 years PROACTIVE • Closed March 2026 with an orderbook of 327 STRONG ASSET av

  3. Slide 3: 2025 Highlights

    2025 Highlights 1 2 3 4 5 Best Record 100% aircraft Strong future A new high in underlying operating utilisation committed aircraft value NPAT in our cash flow3 maintained capex pipeline premium4 history1,2 throughout 2025 US$746 US$2.2 100% US$19.1 US$3.4 million billion billion billion A strong fo

  4. Slide 4: Record Underlying Earnings in 2025

    Record Underlying Earnings in 2025 Key indicators 2025 2024 Change US$ million US$ million Total revenues and other 2,619 2,557 2% income Core lease rental contribution1 706 584 21% Profit before tax 936 1,039 10% Reported net profit after tax 787 924 15% Underlying net profit after 746 633 18% tax2

  5. Slide 5: Total Assets in Excess of US$26 billion

    Total Assets in Excess of US$26 billion Key indicators 2025 2024 Change Total assets (US$ billion) 26.3 25.1 5% Net assets per share (US$) 9.86 9.17 8% Total equity (US$ billion) 6.8 6.4 8% Total liquidity (US$ billion) 6.9 6.5 7% Gross debt-to-equity 2.5 2.6 Stable (times) Achieving our growth targ

  6. Slide 6: Dividend Payout Lifted to 40%

    Dividend Payout Lifted to 40% US$ 0.47 0.45 0.39 0.35 0.31 0.27 0.30 0.28 0.27 0.31 0.26 0.22 0.27 0.18 0.18 0.19 0.12 0.17 0.18 0.12 0.20 0.13 0.14 0.14 0.15 0.10 0.11 0.11 0.09 0.06 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Interim dividend Final dividend Total dividend per share of US$0.4

  7. Slide 7: How We Invest

    How We Invest Operational and financial flexibility drives aircraft investment across multiple cycles Global European Opportunistic PLB Financial Crisis Covid-19 acquisitions in the Crisis down cycle 120 140 Estimated value of industry aircraft 120 Number of aircraft delivered1 100 deliveries (US$ b

  8. Slide 8: How We Divest

    How We Divest Aircraft sales strategy contributes to a young average fleet age Global European Financial Covid-19 Crisis Crisis 43 3 37 34 35 33 Number of aircraft sold 30 2 4 11 28 29 6 2 23 21 20 2 40 17 32 6 12 12 31 27 26 6 27 10 10 1 5 2 6 19 14 3 2 11 11 7 8 4 2008 2009 2010 2011 2012 2013 201

  9. Slide 9: Total Portfolio of 813 Aircraft and Engines

    Total Portfolio of 813 Aircraft and Engines Our portfolio Asset Type Owned Managed On Order1 Total Airbus A220 family 23 0 0 23 Airbus A320CEO family 57 5 0 62 Airbus A320NEO family 161 0 200 361 Airbus A330CEO family 8 0 0 8 Airbus A330NEO family 6 0 0 6 Airbus A350 family 11 0 3 14 Boeing 737NG fa

  10. Slide 10: Gains on Aircraft Sales Deliver Additional Business Value

    Gains on Aircraft Sales Deliver Additional Business Value Average appraised values > aircraft NBV Gains on aircraft sales margin 18% 15% 15% 11% 11% Long run avg 8% 2023 2024 2025 Average 2023 2024 2025 age of aircraft 6+ 9+ 9+ sold (years)1 Aircraft market value premium of US$3.4 billion represents

  11. Slide 11: Improving Momentum in Lease Yields

    Improving Momentum in Lease Yields Operating lease rate factor1 Net operating lease yield3 +30bps +30bps 10.0% 10.3% 10.4% 10.3% 7.5% 7.6% 7.5% 7.2% 2024 1H 2025 2H 2025 2025 Cost of debt2 Stable 4.5% 4.6% 4.5% 4.5% 2024 1H 2025 2H 2025 2025 2024 1H 2025 2H 2025 2025 Notes: 1. Calculated as operatin

  12. Slide 12: Lease Yields At Highest Levels Since 2019

    Lease Yields At Highest Levels Since 2019 (%) Covid-19 10.8 10.7 10.3 10.5 10.3 10.0 10.0 10.0 Lease rate factor 1 9.7 9.2 8.5 8.6 8.4 8.3 7.9 7.6 7.5 7.0 7.1 7.2 Net lease yield 2 4.0 4.2 4.1 Average 7Y UST Bills 2.8 3.0 2.2 2.0 1.6 1.2 0.7 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Lease yi

  13. Slide 13: Load Factor Was High Even as Demand Fell in April

    Load Factor Was High Even as Demand Fell in April Passenger traffic1 Capacity2 Passenger load factor3 -3% -3% 83% Traffic rose 1% in April excluding the M.E Source: IATA, Air passenger market in detail – April 2026 Notes 1. Revenue Passenger-Kilometers (RPK) YoY growth in April 2026 2. Available Sea

  14. Slide 14: Global Capacity Continued to Decline in the Last Two Months

    Global Capacity Continued to Decline in the Last Two Months ME–APAC and ME–Europe passenger capacity declining by ~26% and ~33% respectively versus 2025 Global capacity change compared to 20251 % difference (2 weeks ending 7-Jun 2026 vs. 2 weeks ending 7-Jun 2025 ) 4 0 12 1 0 0 -5 -35 3 -33 2 -26 -1

  15. Slide 15: Delivery Value to Exceed Pre-2019 Levels in 2026 For First Time

    Delivery Value to Exceed Pre-2019 Levels in 2026 For First Time Total aircraft deliveries All aircraft1,2 Narrowbody Widebody 2,500 2,217 2,118 2,006 2,000 1,886 1,553 1,620 1,500 1,452 1,409 1,155 1,200 1,129 1,080 1,000 858 1,870 1,707 1,810 650 1,594 1,232 1,345 1,103 1,037 1,185 500 963 991 812

  16. Slide 16: Growing Lessors’ Share of the Market

    Growing Lessors’ Share of the Market Proportion of fleet on operating lease 25% 29% 42% 48% 50% 1990 2000 2010 2020 Mar 2026 Lessors own 50% of the aircraft market today Source: Ascend, BOC Aviation’s analysis as at 31 March 2026 based on aircraft of 100 seats. Fleet data in 2020 included aircraft i

  17. Slide 17: Conclusion

    Conclusion Strong net profit Higher dividend payout Robust core business US$746 million 40% US$2.6 billion Highest underlying profit in From up to 35% of full year’s Record total revenues history1 1 NPAT previously 2 3 Leading orderbook High embedded equity Strong portfolio quality value 327 aircraf

  18. Slide 18: Appendices

    APPENDICES © Boc AVIATION

  19. Slide 19: The BOC Aviation Journey – 32 Years in 2025

    The BOC Aviation Journey – 32 Years in 2025 Ownership Total assets 1993 SALE established with 50:50 joint ownership US$ billion between Singapore Airlines and Boullioun Aviation Services Temasek and GIC each became 14.5% 1997 >0.3 1997 shareholders 2000 >1 2006 Bank of China acquired 100% of SALE on

  20. Slide 20: About Us

    About Us Bank of China Listed on HKEX Ownership 70% owned by BOC (2588 HK) Top 5 88 customers in 46 countries Market position Global aircraft operating lessor1 and regions3 32 years US$8.0 billion Profit track record Of unbroken profitability Cumulative profits since inception US$26.3 billion D/E ra

  21. Slide 21: Our Management Team

    Our Management Team Steven Townend Wen Lan Tom Chandler Paul Kent Max Qian Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Commercial Chief Commercial & Managing Director Officer Officer (Asia Pacific & the Middle East) • 35 years of banking • 27 years of banking • 29 y

  22. Slide 22: Core Competencies - BOC Aviation Track Record

    Core Competencies - BOC Aviation Track Record Since inception in 1993: •• Purchasing Purchasing More than 1,300 aircraft purchased totalling more than US$76 billion •• Leasing Leasing More than 1,500 leases executed with > 200 airlines in > 60 countries and regions •• Financing Financing 1 More than

  23. Slide 23: Recent Lessor Bond Deals

    Recent Lessor Bond Deals Tenor Amt Issued T-Spread at Issuer Pricing Date Coupon (%) Yield (%) (years) (US$ million) Issue (bps) BOC Aviation Limited 26/8/2025 5.5 500 4.250 4.344 58 BOC Aviation USA Corp 7/1/2025 3 500 4.750 4.914 60 BOC Aviation Limited 5/1/2026 7 500 4.375 4.582 65 Aercap 6/1/202

  24. Slide 24: Lease Rental Income Drives Revenue

    Lease Rental Income Drives Revenue Lease rental income drives total revenues and other income US$ million 2,557 2,619 Interest, fee income and others1 20% 589 516 118 213 1,850 1,890 Net gain on sale of Total Lease rental income aircraft revenues 72% 8% 2024 2025 Lease rental income Net gain on sale

  25. Slide 25: Diverse Funding Channels Utilised in 2025

    Diverse Funding Channels Utilised in 2025 Sources and Uses of Cash US$ million Sources Uses 1,000 89 (4,240) 6,915 1,432 2,610 Undrawn committed (1,859) 6,515 credit facilities 2,175 (635) (556) 671 (288) Cash & cash 400 equivalents Cash and Operating 1 Bank loans Asset sales Bond Others Capex Bond

  26. Slide 26: Long-Term Leases A Key Feature of the Company

    Long-Term Leases A Key Feature of the Company A long average remaining lease term1 Well-dispersed scheduled lease expiries2 Number of years 400 72.0% 80% 7.9 7.8 7.7 300 Avg aircraft remaining lease term of 7.7Y3 60% 200 40% 100 6.5% 7.2% 10.4% 20% 0.6% 3.3% 0 0% 2027 2028 2029 2030 2031 2032 and be

  27. Slide 27: Global Lessor With a Highly Diversified Portfolio

    Global Lessor With a Highly Diversified Portfolio Lease portfolio diversified by customer1 …and diversified by geography1 American Airlines 14.0% Middle East and Africa 9.8% Americas JetBlue Europe 40.0% 6.2% 14.5% Qatar Airways Others 6.0% 65.4% IndiGo Asia Pacific 4.7% Chinese Mainland, Hong (excl

  28. Slide 28: Flexible Capital Structure

    Flexible Capital Structure Sources of debt1 Fixed vs floating rate leases1, 2 Loans 8% 11% Loans 46% 53% 92% 89% Bonds Bonds 54% 47% 2024 2025 2024 2025 Fixed rate Floating rate Outstanding debt maturity profile Fixed vs floating rate debt US$ billion 27% 28% 4.2 3.5 2.7 3.0 1.9 1.9 73% 72% 2026 202

  29. Slide 29: Record Aircraft Valuations – and Rising

    Fleet-weighted average CMV / BV ratio 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Source: Cirium Core, passenger jets only, 31 March 2026 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-1

  30. Slide 30: Airline Industry Profits

    Airline Industry Profits IATA global airline industry net post-tax profit Estimated / Forecast by IATA Economics Africa Asia Pacific Europe Latin America Middle East North America 60 45 41 38 40 23 20 37 35 35 27 26 18 17 11 6 0 4 -138 -40 -3 -140 2013 2019 2010 2012 2014 2015 2016 2017 2018 2020 20

  31. Slide 31: Jet Fuel Prices For 2026 YTD Averaged at $145/bbl

    Jet Fuel Prices For 2026 YTD Averaged at $145/bbl Jet fuel and brent crude price (daily timeframe1) US$/barrel Jet fuel (SG) Avg. Apr Jet fuel Avg. June Jet fuel Avg. Avg. Avg. Avg. Avg. Brent crude Avg. Apr Brent Avg. June Brent Feb Mar Apr May Jun2 Avg. Mar Jet fuel Avg. May Jet fuel Crack spread

  32. Slide 32: Passengers Must Prepare to Pay Higher Airfares

    Passengers Must Prepare to Pay Higher Airfares Airlines must pass through higher jet fuel costs to passengers to remain profitable - IATA forecast has c.15% increase in ticket prices Average 2026 full year jet fuel price and % of jet fuel cost increase passed to passengers1 sensitivity table Industr

  33. Slide 33: Disclaimer

    Disclaimer This presentation contains information about 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, an offer to sell or issue or the solic

  34. Slide 34: www.bocaviation.com

    www.bocaviation.com BOC Aviation Limited 79 Robinson Road #15-01 Singapore 068897 Phone +65 6323 5559 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K

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