Boc Aviation Limited · HKEX:2588
Boc Aviation — H1 2025 Earnings Presentation
32 slides from Boc Aviation's earnings presentation, August 2025
Slide 1: 2025 Interim Results Review
2025 INTERIM RESULTS REVIEW AUGUST/SEPTEMBER 2025
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: 1H 2025 Overview
1H 2025 OVERVIEW © Boc AVIATION
Slide 4: Strong Underlying Profitability
Strong Underlying Profitability 1H 2025 1H 2024 Change US$ million US$ million Total revenues and other income 1,242 1,174 6% Core lease rental contribution1 342 276 24% Profit before tax 406 509 20% Net profit after tax 342 460 26% Core net profit after tax2 342 284 20% Growth in all business lines
Slide 5: Robust Balance Sheet and Liquidity
Robust Balance Sheet and Liquidity 30 Jun 2025 31 Dec 2024 Change Total assets (US$ billion) 25.6 25.1 2% Net assets per share (US$) 9.37 9.17 2% Total equity (US$ billion) 6.5 6.4 2% Total liquidity (US$ billion) 6.1 6.5 7% Gross debt to equity (times) 2.6 2.6 Stable Strong balance sheet, low lever
Slide 6: 2025 Interim Dividend
2025 Interim Dividend US$/share 0.1988 0.1476 0.1388 0.1398 0.1284 0.1098 0.1131 0.1038 0.0889 0.061 1H 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025 interim dividend per share of US$0.1476 represents the second highest on record 6
Slide 7: 1H 2025 Highlights
1H 2025 Highlights 1 2 3 4 5 Earnings Robust core Maintained Record Rising reflect growth lease rental optimal orderbook aircraft value in all contribution aircraft premium1 businesses utilisation US$342 US$342 100% 351 US$2.8 million million aircraft billion Note: 1. Average appraised aircraft valu
Slide 8: Fundamentals Continue to Strengthen
Fundamentals Continue to Strengthen Revenues1 Core profit before tax1 US$ million US$ million 1,157 1,242 1,061 406 295 323 1H 2023 1H 2024 1H 2025 1H 2023 1H 2024 1H 2025 Operating cash flow net of interest1,2 Core net profit after tax1 US$ million US$ million 1,000 342 899 262 284 721 1H 2023 1H 2
Slide 9: How We Invest
How We Invest Number of aircraft delivered, purchased and sold Global Financial European Opportunistic PLB Covid-19 Crisis crisis acquisitions in the down cycle 41 19 45 24 13 (3) 9 16 14 41 22 45 27 7 4 16 6 41 9 22 17 29 12 14 31 18 21 61 43 6 5 58 17 25 6 5 44 48 50 5 12 27 31 41 3 5 17 22 22 23
Slide 10: Total Portfolio Exceeded 830 Aircraft and Engines
Total Portfolio Exceeded 830 Aircraft and Engines Our portfolio Asset Type Owned Managed On Order1 Total Airbus A220 family 23 0 0 23 Airbus A320CEO family 60 13 0 73 Airbus A320NEO family 146 0 211 357 Airbus A330CEO family 8 1 0 9 Airbus A330NEO family 6 0 0 6 Airbus A350 family 9 0 0 9 Boeing 737
Slide 11: Lease Rental Income Drives Revenue
Lease Rental Income Drives Revenue Lease rental income drives total revenues and other income US$ million Net gain on sale of aircraft 1,242 5% 1,174 56 60 190 244 Interest, fee income and others 928 937 20% Total revenues 1H 2024 1H 2025 Lease rental income Net gain on sale of aircraft Interest, fe
Slide 12: 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 15% 14% 15% 14% 9% Long run avg 5% June 2023 1/1/2023 June 2024 1/1/2024 June 2025 1/1/2025 Average 1H 2023 1H 2024 1H 2025 age of aircraft 8+ 9+ 10+ sold (years)1 Gains o
Slide 13: 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 78.5% 100% 300 80% 8.1 7.9 7.9 Avg aircraft remaining lease term of 7.9 years 200 60% 40% 100 1.0% 1.3% 3.9% 7.3% 8.0% 20% 0 0% 2026 2027 2028 2029 2030 2031 an
Slide 14: Lease Yields Lift as Portfolio Composition Improves
Lease Yields Lift as Portfolio Composition Improves Operating lease rate factor1 Net operating lease yield3 10.0% 10.0% 10.3% 7.5% 7.1% 7.2% 2023 2024 1H 2025 Cost of debt2 4.5% 4.6% 4.1% 2023 2024 1H 2025 2023 2024 1H 2025 Notes: 1. Calculated as operating lease rental income divided by average air
Slide 15: Rising Core Lease Rental Contributions
Rising Core Lease Rental Contributions Core operating and finance leasing activities drive earnings growth Core lease rental contribution (US$ million)1 344 342 280 279 276 1H 2021 1H 2022 1H 2023 1H 2024 1H 2025 Highest interim core lease rental contribution since 2021’s record Note: 1. Calculated
Slide 16: 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 Middle East and Africa 13.3% 9.7% Americas JetBlue 37.8% 6.5% Europe 15.3% Qatar Airways Others 6.3% 64.8% IndiGo Asia Pacific 5.0% Chinese Mainland, (excluding
Slide 17: Record Cash Flow Generation
Record Cash Flow Generation Collection rate exceeded 100% for the third Net cash flow from operating activities consecutive interim US$ million 101.8% 102.0% 100.7% 1,290 1,394 1,024 1H 2023 1H 2024 1H 2025 1H 2023 1H 2024 1H 2025 Operating cash flow net of interest reached 1H 2025 operating cash fl
Slide 18: Diverse Funding Channels Utilised in 1H 2025
Diverse Funding Channels Utilised in 1H 2025 Sources and Uses of Cash US$ million Sources Uses 6,052 651 (1,887) 451 500 Undrawn 1,710 (1,859) 5,519 committed credit 1,000 facilities (503) 671 (201) 533 Cash & Cash and Operating Bank loans 1 Bond Net RCF Asset sales Capex Bond Loan Dividends Availab
Slide 19: Flexible Capital Structure
Flexible Capital Structure Sources of debt Asset and liability profile Loans Loans 46% 55% Floating rate 10% Floating rate Bonds Bonds 22% 54% 45% 2024 1 1H 2025 Fixed rate Outstanding debt maturity profile Fixed rate 45% 88% US$ billion 3.7 3.3 3.1 Others 3.0 2.6 8% 1.0 Equity 0.3 Others 25% 2% 2H
Slide 20: Strongest Pipeline of Deliveries in our History
Strongest Pipeline of Deliveries in our History Orderbook delivery schedule1 Record total future committed capex of US$20bn Number of aircraft US$ billion 203 124 14.5 9 48 3 115 21 24 2025 2026 to 2028 2029 and beyond 2 Delivered Orderbook Purchase and leaseback Highest interim capex since 2020 4.0
Slide 21: Conclusion
Conclusion 01 02 03 04 05 05 Record Record Consistent Record Rising Strong interim aircraft Completion portfolio core dividend total future interim profits payout 1 capex value quality profit premium2 US$0.1476 30% 100% Interim distribution Utilisation rate Notes: 1. Excludes the net impact of write
Slide 22: Appendices
APPENDICES © Boc AVIATION
Slide 23: The BOC Aviation Journey – 32 Years in 2025
The BOC Aviation Journey – 32 Years in 2025 Ownership Total assets 1993 SALE established with 50:50 joint ownership US$ 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
Slide 24: About Us
About Us Bank of China Listed on HKEX Ownership 70% owned by BOC (2588 HK) Top 5 92 customers in 45 countries Market position Global aircraft operating lessor1 and regions 31 years >US$7.5 billion Profit track record Of unbroken profitability Cumulative profits since inception US$25.6 billion D/E ra
Slide 25: 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 Officer Chief Commercial Officer Managing Director (Asia Pacific & the Middle East) • 34 years of banking and • 26 years of banking •
Slide 26: 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$75 billion •• Leasing Leasing More than 1,500 leases executed with > 190 airlines in > 60 countries and regions •• Financing Financing 1 More than
Slide 27: Industry Will Need to Fund US$124 Billion of Aircraft in 2026
Industry Will Need to Fund US$124 Billion of Aircraft in 2026 Total aircraft deliveries All aircraft1,2 Narrowbody Widebody Freighter 2,000 1,894 1,621 1,659 1,492 1,500 1,419 1,242 1,245 1,124 1,152 1,000 899 729 1,589 1,359 1,220 1,189 500 1,084 1,037 991 963 795 775 507 0 2017 2018 2019 2020 2021
Slide 28: Growing Lessors' Share of the Market
Growing Lessors’ Share of the Market Proportion of fleet on operating lease 25% 29% 42% 48% 50% 1990 2000 2010 2020 June 2025 Lessors own 50% of the aircraft market today Source: Ascend, BOC Aviation’s analysis as at 30 June 2025 based on aircraft of 100 seats. Fleet data in 2020 included aircraft i
Slide 29: Record Aircraft Valuations – and Rising
Record Aircraft Valuations – and Rising Aircraft shortages continue to drive values for both narrowbodies and widebodies to unprecedented levels, and that despite significant increases in BV around mid-2024, artificially lowering ratios Source: BOC Aviation analysis, Cirium Ascent Consultancy data a
Slide 30: Near Record Airline Industry Profits
Near Record Airline Industry Profits IATA global airline industry net post-tax profit Estimated / Forecast by IATA Economics, US$ billion 40 35 34 38 35 32 36 20 0 -20 -40 -60 -80 -100 -120 -140 2022 2025F 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 2011 2024E Source: Global Outlook
Slide 31: Asia Pacific to Lead Industry's Growth in 2025
Asia Pacific to Lead Industry’s Growth in 2025 2025E passenger growth rates and load factor 10% 100% 9.0% 84% 8.0% 8% 80% 6.4% 5.8% 6.0% 5.8% 6% 60% 4% 40% 2% 20% 0.4% 0% 0% Industry Asia Pacific Africa Middle East Europe Latin America North America RPK growth (YoY change, LHS) PLF (RHS) Source: IAT
Slide 32: 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