Slide 1: 2018 Interim Results Review
2018 INTERIM RESULTS REVIEW Information Slides 15 August 2018
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: 1H18 Overview
1H18 OVERVIEW Pie ©) BOC AVIATION 3
Slide 4: 1H18 - Another Record Performance
1H18 - Another Record Performance Strong earnings growth1 Robust balance sheet5 US$297 million 24% US$17.1 billion 7% Total assets Net profit after tax US$0.43 24% US$4.0 billion 4% Total equity Earnings per share2 US$5.75 4% Net assets per share2 Driven by: US$825 million 23% Higher dividend per sh
Slide 5: Continued Growth in Net Assets and Earnings Per Share
Continued Growth in Net Assets and Earnings Per Share US$ 6.0 0.5 0.43 1 0.36 0.4 0.35 0.29 0.3 5.0 5.75 5.50 0.2 5.10 4.87 0.1 4.0 0.0 2H16 1H17 2H17 1H18 Net assets per share (LHS) Earnings per share (RHS) 18% EPS CAGR since IPO All data as at the end of the relevant period Note: 1. Excludes the a
Slide 6: Strong Operational Performance in 1H18
Strong Operational Performance in 1H18 • Ended June 2018 with total fleet of 4871 • Portfolio utilization of 100% and cash collection rate of 99.5% • Average fleet age of 3.0 years2 • Average lease term of 8.3 years2 • Took delivery of 27 aircraft in 1H183 • Delivered our 250th Boeing and first Boei
Slide 7: 1H18 Revenue and NPAT Growth
1H18 Revenue and NPAT Growth Fleet growth underpins lift in revenues Operating margin > 40%2 US$ million 825 41.7% 41.5% 42.6% 42.6% 41.3% 670 579 520 535 1H14 1H15 1H16 1H17 1H18 1H14 1H15 1H16 1H17 1H18 Higher core lease rental contribution1 Strong NPAT growth US$ million 312 US$ million 297 259 2
Slide 8: 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 4.2% 825 Net gain on sale of aircraft 4.4% 670 37 48 753 607 1H17 1H18 Lease rental income Lease rental income Net gain on sale of aircraft 91.4% In
Slide 9: Core Leasing Business Anchors Earnings Growth
Core Leasing Business Anchors Earnings Growth c.80% of PBT is from core lease rental We have a longer average remaining lease contribution1 term2 Interest, fee income and others Number of years 10% 8.2 8.3 Net gain on sale 7.5 7.4 7.3 of aircraft 11% Core lease rental contribution 79% 2014 2015 2016
Slide 10: Consistently High Net Lease Yield Drives Profitability
Consistently High Net Lease Yield Drives Profitability Higher lease rate factor1,5 reflects increased ... with a higher proportion of fixed rate debt proportion of fixed rate leases affecting finance expenses3,5 10.8% 3.1% 2.8% 10.5% 2.5% 10.3% 2.0% 1.9% 9.9% 9.8% 2014 2015 2016 2017 1H18 2014 2015
Slide 11: Debt Stability Reduces Finance Expense Volatility
Debt Stability Reduces Finance Expense Volatility US$ billion Loan 0.3 Loan Bonds (0.5) (0.2) 1.2 11.7 Debt 10.9 outstanding 10.2 since 1 Jan 18 Indebtedness as at Repayment Net RCF borrowings New debt Indebtedness as at 1 Jan 18 30 Jun 18 Over 90% of debt unchanged from 1 January 2018 All data as a
Slide 12: Diversified Portfolio Delivers High Utilization, High Collection Rate
Diversified Portfolio Delivers High Utilization, High Collection Rate Lease portfolio diversified by customer1,3 …and diversified by geography1,3 Qatar Airways Americas 10.5% 11.1% EVA Airways Chinese Mainland, 6.8% Middle East Hong Kong SAR, Air China and Africa Macau SAR and Taiwan 4.2% 12.7% 29.0
Slide 13: Long-term Contracted USD Cash Flows
Long-term Contracted USD Cash Flows Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3 By net book value 79.8% 200 80% 150 Average remaining lease term of 8.3 years 60% 34% 30% 56% 46% 100 40% 65% 50 4.5% 3.1% 6.4% 20% 2.2% 1.6% 70% 0.2% 54% 66% 0 0% 35% 44% 2H18 2019 20
Slide 14: Flexible Capital Structure and Ample Backstop Liquidity
Flexible Capital Structure and Ample Backstop Liquidity Sources of debt1 Outstanding debt amortises over a long term US$ billion BOC BOC 12 ECA2 2% ECA2 4% 10% 8% 10 Loans 8 Loans 28% 34% 6 Bonds Bonds 4 54% 60% 2 0 2017 1H18 2018 2019 2020 2021 2022 2023 and beyond Total loans outstanding Total bon
Slide 15: Popular and Fuel-Efficient Fleet
Popular and Fuel-Efficient Fleet Our aircraft portfolio Aircraft type Owned aircraft1 Managed aircraft Aircraft on order2 Total Airbus A320CEO family 130 11 3 144 Airbus A320NEO family 12 0 58 70 Airbus A330CEO family 12 6 0 18 Airbus A330NEO family 0 0 2 2 Airbus A350 family 6 0 0 6 Boeing 737NG fa
Slide 16: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Growing balance sheet Committed deliveries of 163 aircraft until 20211 US$ billion Number of aircraft 17.1 16.0 13.4 2.3 2.8 12.5 11.4 2.7 31 1.5 2.8 1 62 13.7 14.3 9.9 9.7 10.7 41 272 29 2014 2015 2016 2017 1H18 2018 2019 2020 2021 Aircraft NBV Other
Slide 17: 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 US$14.7 billion US$ billion + PV of excess returns US$ billion on equity +US$1.6bn premium of current market value1 over aircraft NBV 2.5 ? 1.6 >14.5 12.1 14.3 NBV Premium over N
Slide 18: Conclusion
Conclusion • Another record performance • 1H18 NPAT increased 24% to US$297 million • Interim dividend also increased 24% year-on-year to US$0.1284/share • Net assets and earnings per share have grown consistently since our IPO • Long-term revenue visibility and sustainability • Committed lease reve
Slide 19: 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 19