Boc Aviation Limited · HKEX:2588
Boc Aviation — H1 2019 Earnings Presentation
18 slides from Boc Aviation's earnings presentation, Aug 16, 2019
Slide 1: 2019 Interim Results Review Information Slides
2019 INTERIM RESULTS REVIEW INFORMATION SLIDES 16 AUGUST 2019
Slide 2: 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
Slide 3: 1H19 Overview
1H19 OVERVIEW Pie ©) BOC AVIATION 3
Slide 4: Another Record First Half Performance
Another Record First Half Performance Stable earnings growth1 Robust balance sheet4 US$321 million 8% US$19.2 billion 5% Net profit after tax Total assets US$0.46 8% US$4.3 billion 2% Earnings per share Total equity Driven by: US$6.18 2% US$930 million 13% Net assets per share Total revenues and oth
Slide 5: An Active 1H19
An Active 1H19 • Achieved US$4 billion in cumulative net profit after tax since inception in 1993 • Ended June 2019 with total fleet of 499 comprising 314 owned, 23 managed and 162 on order • Portfolio utilization of 99.6% • Average fleet age of 3.1 years1 • Average remaining lease term of 8.2 years
Slide 6: Record NPAT
Record NPAT Fleet growth underpins growth in revenues Improving core lease rental contribution1 US$ million US$ million 930 341 327 825 670 264 579 228 535 208 1H15 1H16 1H17 1H18 1H19 1H15 1H16 1H17 1H18 1H19 Continuing PBT Growth Robust NPAT performance US$ million US$ million 352 321 329 297 269
Slide 7: 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 Net gain on sale of aircraft US$ million Interest, fee income and 2.4% 930 others 76 825 8.1% 22 35 37 832 753 1H18 1H19 Lease rental income Lease rental income Net gain on sale
Slide 8: Core Leasing Business Supports Earnings Growth
Core Leasing Business Supports Earnings Growth 80% of PBT is from core lease rental We have a long average remaining lease contribution1, net of costs term4 Net gain on sale Others Number of years of aircraft 6% 8.3 8.2 8.2 6% 7.4 7.3 Interest and fee income2 8% Core lease rental contribution, net o
Slide 9: Leasing Market Continues to Shift Towards Fixed Rates
Leasing Market Continues to Shift Towards Fixed Rates Lease rate factor1 reflects increased proportion Cost of debt3 reflects more fixed rate funding of fixed rate leases 10.8% 10.8% 3.6% 3.3% 10.5% 2.8% 2.5% 10.3% 2.0% 9.9% 2015 2016 2017 2018 1H19 2015 2016 2017 2018 1H19 Proportion of fixed rate
Slide 10: Stable Debt Structure
Stable Debt Structure US$ billion Loans (0.6) Loans 0.8 (0.9) Bonds 1.3 Debt 12.5 13.1 11.9 11.0 11.0 outstanding 11.0 bn since 1 Jan 19 Indebtedness as at Repayment Net RCF Borrowing New Debt Indebtedness as at 1 Jan 19 30 Jun 19 More than 80% of debt unchanged from 1 January 2019 10
Slide 11: Diversified Portfolio Delivers High Utilization Rate
Diversified Portfolio Delivers High Utilization Rate Lease portfolio diversified by customer1,2,3 …and diversified by geography1,3 Qatar Airways 9.1% Americas EVA Airways 8.2% Chinese Mainland, 5.9% Middle East and Hong Kong SAR, Norwegian Africa Macau SAR and Taiwan 4.6% 11.8% 30.8% Air China 3.7%
Slide 12: Long-term Contracted USD Leases
Long-term Contracted USD Leases Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3 By net book value 250 79.1% 100% 200 80% 21% 34% 24% Average remaining lease term of 8.2 years 56% 46% 150 60% 100 40% 76% 79% 66% 50 20% 54% 0.2% 0.9% 3.9% 2.4% 4.2% 7.9% 44% 0 0% 2H19 20
Slide 13: 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 4% 5% ECA2 ECA2 12 Loans 7% Loans 5% 28% 10 32% 8 6 Notes Notes 62% 4 57% 2 0 2018 1H19 2019 2020 2021 2022 2023 2024 and beyond Total loans outstanding Total note
Slide 14: 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 126 7 0 133 Airbus A320NEO family 36 0 52 88 Airbus A330CEO family 12 3 0 15 Airbus A330NEO family 0 0 12 12 Airbus A350 family 6 0 2 8 Boeing 737NG fa
Slide 15: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Growing balance sheet Sustained annual CAPEX since IPO US$ billion 19.2 US$ billion 4.4 18.3 4.1 16.0 3.3 3.3 3.4 1 12.5 13.4 2.3 2.9 1.6 3.0 1.5 2.8 2.7 1.5 1.0 1.5 13.7 15.0 15.9 9.7 10.7 2.8 2.6 1.9 1.9 1.5 2015 2016 2017 2018 1H19 2015 2016 2017 20
Slide 16: Value Driven by Fleet and Committed Lease Revenues
Value Driven by Fleet and Committed Lease Revenues Committed future revenues of more than US$15 Net book value understates business value billion US$ billion + PV of excess returns US$ billion on equity +US$1.5bn premium of current market value1 over aircraft NBV ? 2.4 1.5 15.4 13.0 15.9 NBV Premium
Slide 17: Conclusion
Conclusion • Another solid performance • Cumulative NPAT of US$4 billion since inception • 1H19 NPAT increased 8% to US$321 million • Interim dividend also increased 8% year-on-year to US$0.1388/share • Long-term revenue sustainability supported by strong liquidity • Committed lease revenues maintai
Slide 18: 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 18