Slide 1: Half Year Results
Equity Ticker LSE: AVAP Bond Ticker LU: AVTCAP Half Year Results 3 March 2023 Jeff Chatfield Iain Cawte Duncan Scott Soeren Ferre Ashley Nicholas Executive Chief Financial Group General Chief Commercial Corporate Finance Chairman Officer Counsel Officer Director
Slide 2: Important Notice
Important Notice Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect the Company’s current intentions, plans, expectations, assumptions and beliefs about future ev
Slide 3: Overview
avation PLC Overview
Slide 4: Snapshot of Avation Dec 2022
Snapshot of Avation 31 Dec 2022 Diversified Fleet and Customer Base with Strong Metrics Customers 37 16 Airline 18%/52%/30% located in 13 Widebody/narrowbody Aircraft Customers Countries /turboprop by value 6.1 Years 5.4 Years US$936Mn US$536Mn Weighted Average Fleet Assets Unearned contracted Weigh
Slide 5: Aircraft Portfolio Dec 2022
Aircraft Portfolio 31 Dec 2022 Popular aircraft with low average age Balanced fleet with valuable orderbook and purchase rights that By Aircraft Value create a significant opportunity for fleet growth Purchase Aircraft Type Fleet Orders Rights Turboprop ATR 72-600 16 2 28 Widebody 18% Turboprop ATR
Slide 6: Orderbook and Purchase Rights
Orderbook and Purchase Rights Firm Aircraft Orderbook • Two ATR72-600 with 2024 delivery • With low CO2 PW 127XT-M engines • IBA Dec 2022 Market Value is $21.3 million per aircraft • All PDPs are paid Purchase rights • 28 ATR72-600 aircraft with PW 127XT-M engines • Purchase rights run to June 2027
Slide 7: A diverse customer base
A diverse customer base… 200+ #Operators +200 OPERATORS 100 COUNTRIES Various operations: Regional Airlines, Network Carriers, LCC, All A320 737NG EJets ERJ135 All Charters, Cargo, VIP, Special Mission Family Family Dash 8 to 145 CRJ
Slide 8: Aging fleet profile will increase replacement opportunities
Aging fleet profile will increase replacement opportunities 600 500 TP30 TP50 TP70 1200 aircraft over retirement 400 age 300 200 100 0 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 >40 Source: Cirium, 2nd Sep, Western types only, In service and stored fleet. Notes: Retirement age for TP30s and TP50s
Slide 9: History of Green Financing
HISTORY OF GREEN FINANCING SINGAPORE, 19 DECEMBER 2019 - Avation PLC … the first ever commercial aircraft financed with a Green Loan. The green loan was provided by Deutsche Bank. Vigeo Eiris, one of the world’s leading institutions for Environmental, Social and Governance ratings, has expressed an
Slide 10: 50% Sustainable aviation fuel compliant
ATR responsible aviation 50% Sustainable aviation fuel compliant In daily operations in Scandinavia, with & Thanks to low fuel consumption, competitive advantage of using SAF on ATR Engaged to enable 100% SAF by 2025 through partnership with &
Slide 11: A Successful Program
A Successful Program +200 100 1,800 1,600 36 M +1 B operators countries aircraft sold deliveries flights passengers From the world’s largest cities, to our planet’s most remote regions, our purpose is to deliver air travel to people, communities and businesses in an innovative, sustainable and moder
Slide 12: Airline Customers
Airline Customers 16 Airline Customers in 13 Countries Airline Aircraft Number Vietjet A321-200 6 Air Baltic A220-300 5 Hevilift ATR 72-500 3 Mandarin ATR 72-600 3 Alliance Air ATR 72-600 2 Braathens ATR 72-600 2 Danish Air Transport ATR 72-600 2 US Bangla ATR 72-600 2 EVA Air A330-300 1 Philippine
Slide 13: Operational Highlights HY2023
Operational Highlights HY2023 Aircraft Sales • Sold 2 ATR 72-600 aircraft • Boeing 737-800 sold (February 2023) Aircraft Leases • New lease for an ATR 72-500 with an airline in Nepal Aircraft transitions • ATR 72-600 repossessed from Myanmar 13
Slide 14: HY2023 Results
avation PLC HY2023 Results
Slide 15: HY 2023 Summary
HY 2023 Summary Total Income Lease Revenue US$55.3 million US$46.3 million (8%) YoY (20%) YoY Operating Profit Profit after Tax US$35.1 million US$8.3 million 86% YoY HY 2022: (US$15.3) million Total Assets Net Indebtedness (1) US$1.19 billion US$746.9 million FY 2022: US$1.22 billion FY 2022: $792.
Slide 16: Debt Analysis
Debt Analysis HY2023 FY2022 Total loans and borrowings (US$ million) 779.0 828.1 Net Indebtedness (US$ million) 746.9 792.9 Weighted Average Cost of Debt 6.1% 5.7% Weighted Average Cost of Secured Debt 4.5% 4.0% Proportion of Fixed/Hedged Interest Rate Debt 94.8% 90.0% Net Debt/Total Assets 62.9% 65
Slide 17: Key Ratios
Key Ratios Comparative Ratios HY2023 FY2022 Net asset value per share (US$) $3.42 $3.27 Net asset value per share (£) £2.82 £2.68 Lease yield (a) 9.4% 9.5% Admin expense (ex warrants)/Revenue 8.2% 7.2% Credit Ratios Debt/Equity 3.3 3.6 Net Debt/EBITDA (b) 6.7 7.9 Net Debt/Total Assets 62.9% 65.1% EB
Slide 18: Liquidity Update Dec 2022
Liquidity Update 31 Dec 2022 HY 2023 FY 2022 Total cash $111.4m $119.2m • Unrestricted $32.1m $35.3m • Restricted $79.3m $83.9m Other current assets $28.6m $12.8m • Trade debtors $6.5m $3.7m • Other debtors $11.5m $5.4m • Equity investment $10.6m $3.7m Unencumbered aircraft 5 3 • ATR 72 4 2 • B737-8
Slide 19: Liability Structure & Loan Maturities
Liability Structure & Loan Maturities 500 456 450 400 350 300 $m 348 250 200 150 100 80 57 59 65 45 - - - 10 45 50 9- 13 - 30 80 17 19 49 46 55 63 45 - 30 - - - 17 19 2023 2024 2025 2026 2027 2028 2029 2030 2031 Secured loans Warehouse loan Unsecured 19
Slide 20: Secured Debt Amortisation Profile
Secured Debt Amortisation Profile Historical Projected 1,400 70% 1,200 60% 1,000 50% 800 40% $m LTV 600 30% 400 20% 200 10% 0 0% 2020 2021 2022 2023 2024 2025 2026 2027 NBV Senior debt LTV 20
Slide 21: Pathway Forward & Strategy
Pathway Forward & Strategy 21
Slide 22: FY2023 Focus
FY2023 Focus • To leverage industry recovery from Covid • Reposition/sell last few unutilised aircraft • Continue debt improvement • Opportunities for ATR72-600 orderbook with new PW127XT engines and low CO2 • Establish pathway to organic growth 22
Slide 23: Conclusion
Conclusion Aviation sector has demonstrated recovery Return to profitability and lower leverage Evolution to low CO2 Strategic alignment to sustainable future Positioned for organic growth 23
Slide 24: Question & Answer Section
Question & Answer Section Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Iain Cawte Duncan Scott Soeren Ferre Ashley Nicholas Executive Chief Financial Group General Chief Commercial Corporate Finance Chairman Officer Counsel Officer Director