Slide 1: 2017 Interim Results Review: Information Slides
2017 INTERIM RESULTS REVIEW Information Slides 29 August 2017
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. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an off
Slide 3: 1H17 Overview
1H17 OVERVIEW ©) BOC AVIATION 3
Slide 4: 1H17 - Delivering on Promises
1H17 - Delivering on Promises Consistent execution underpins strong Robust Balance Sheet5 earnings1 US$240 million 13% US$14.4 billion 7% Total assets Net profit after tax US$0.35 13% US$3.5 billion 5% Total equity Earnings per share2 US$5.10 5% Net assets per share2 Driven by: US$670 million 16% In
Slide 5: 1H17 - Operational Developments
1H17 - Operational Developments • Ended 1H17 with 261 owned and 36 managed aircraft • Portfolio utilization high at 99.6% • 99.9% for 2Q17 • Cash collection of 100% • Average fleet age of 3.1 years1 – one of the youngest in the industry • Average lease term remaining of 7.8 years1 • 34 aircraft adde
Slide 6: 1H17 Revenue and NPAT Growth
1H17 Revenue and NPAT Growth Fleet growth underpins lift in revenues Operating margin >40%2 US$ million 42.6% 42.6% 41.7% 41.5% 670 39.5% 579 520 535 453 1H13 1H14 1H15 1H16 1H17 1H13 1H14 1H15 1H16 1H17 Rising core lease rental contribution1 Consistent NPAT growth US$ million US$ million 259 240 22
Slide 7: Lease Rental Income Dominates P&L
Lease Rental Income Dominates P&L Lease rental income consistently c.90% of total revenue and other income Interest & fee income and others US$ million 2.3% 670 Net gain on sale of 579 48 aircraft 37 7.1% 607 516 1H16 1H17 Lease rental income Lease rental income Net gain on sale of aircraft 90.6% In
Slide 8: Improving Net Lease Yield Drives Profitability
Improving Net Lease Yield Drives Profitability Higher lease rate factor1 reflects increased ... with a higher proportion of fixed rate debt fixed rate leases affecting finance expenses4 10.7% 2.8% 2.5% 10.3% 2.0% 1.9% 1.9% 9.9% 9.8% 9.7% 2013 2014 2015 2016 1H17 2013 2014 2015 2016 1H17 Proportion o
Slide 9: Our Portfolio Remains Well Diversified
Our Portfolio Remains Well Diversified Lease portfolio diversified by customer1,4 …and diversified by geography1,4 High collection rate High fleet utilization5 98.5% 99.4% 100.9% 99.8% 97.2% 100.4% 99.9% 100.4% 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 99.8% 99.0% 99.9% 100.0% 99.9% 99.6% Average = 9
Slide 10: Long-term, Stable and Contracted USD Cash Flows
Long-term, Stable and Contracted USD Cash Flows Well-dispersed lease expiries1,2 Proportion of fixed rate leases rising steadily4 By net book value 200 75.1% 80% 150 60% Average remaining lease term of 7.8 years 40% 56% 46% 100 40% 65% 174 74% 50 7.5% 4.7% 20% 0.4% 2.6% 3.4% 5.2% 2 54% 60% 0 11 11 1
Slide 11: Debt Profile
Debt Profile Sources of debt1 Outstanding debt balances US$ billion BOC BOC BOC ECA2 3% ECA2 2% 10 ECA2 9% 14% 12% 14% 8 Loans Loans Loans 32% 34% 34% 6 4 Bonds Bonds Bonds 43% 51% 52% 2 0 1H16 FY16 1H17 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total loans outstanding Total bonds outstandin
Slide 12: Our Fleet
Our Fleet Our Aircraft Portfolio Aircraft Type Owned Aircraft Managed Aircraft Aircraft on Order1 Total Airbus A320CEO family 126 13 17 156 Airbus A320NEO family 1 0 65 66 Airbus A330CEO family 12 7 1 20 Airbus A330NEO family 0 0 2 2 Airbus A350 family 0 0 6 6 Boeing 737NG family 91 8 27 126 Boeing
Slide 13: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Growing balance sheet Committed deliveries of 196 aircraft till 20211 US$ billion Number of aircraft 14.4 13.4 80 12.5 2.3 11.4 10.1 2.7 1.5 2.8 1.0 43 51 11 46 12.1 31 9.9 10.7 25 9.1 9.7 37 2013 2014 2015 2016 1H17 2017 2018 2019 2020 2021 Aircraft N
Slide 14: 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 c.US$15 billion US$ billion US$ billion + PV of leases +US$1.6bn premium of 5.1 current market value1 ? over aircraft NBV 1.6 14.9 ? 9.8 9.8 12.1 NBV Premium over PV of leases 20
Slide 15: Sustainable Value Creation (1)
Sustainable Value Creation (1) • 1H17 has been our best semi-annual performance to date: • Record NPAT - up 13% YoY to US$240 million • Stable net lease yield • US$1.4 billion growth in NBV of aircraft will drive future lease revenues • Committed future lease revenue higher at c.US$15 billion, up 21
Slide 16: Sustainable Value Creation (2)
Sustainable Value Creation (2) • Robust air travel environment • 2017 YTD passenger demand growth continues to exceed expectations and long term trend1 • Strong air traffic continues to underpin demand for new aircraft • 2017 will be another record year of activity - our busiest in the Company’s his
Slide 17: 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 17