Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — HY24 Earnings Presentation
24 slides from Alliance Aviation Services's earnings presentation, Feb 7, 2024
Slide 1: Alliance Aviation Services Limited Results Presentation Half Year Ended 31 December 2023
Need to update photo’s throughout – currently same as 2020 placement Alliance Aviation Services Limited Results Presentation Half Year Ended 31 December 2023 Investor Presentation [date]
Slide 2: Introduction to Alliance
Introduction to Alliance Alliance was founded in 2002. 1,333 96% 70 Alliance provides contracted air transportation solutions FTE On time Aircraft to meet the needs of large corporate mining companies Employees performance and other aviation industry clients. all owned Alliance operated 70 aircraft
Slide 3: The Alliance attributes
The Alliance attributes Contracted revenue from investment Company-owned fleet of jet aircraft well 1 4 grade clients suited to contract flying Alliance has serviced major resource companies since inception Alliance specialises in 80 to 100-seat jet aircraft operations which with a contracted revenu
Slide 4: HY24 Highlights
HY24 Highlights Revenue EBITDA $304.5m $80.4m Profit before Tax Operating Cash Flow $37.7m $12.0m 1 Flight Hours Aircraft in Service 50,793 70 HY24 Presentation 1 – Includes $28.4 million of aircraft classified as Inventory 4
Slide 5: Revenue streams
Revenue streams Flying Revenue Alliance generates revenue from the provision of flights to customers, predominately under long term contracts. Contracted Fly-In-Fly-Out (FIFO) Contracted Wet Lease Flights operated on behalf of resource sector customers. Providing flight services to major airlines. •
Slide 6: Operational metrics
Operational metrics 31 December 31 December Detail 2023 2022 Actual Actual Aircraft in Service – Fokker 37 37 Aircraft in Services – Embraer 33 25 Alliance continues to realise significant Aircraft in Service – Total 70 62 economic benefits from its capital expansion programme. Flight Hours and asse
Slide 7: Financial Summary
Need to update photo’s throughout – currently same as 2020 placement Financial Summary For Half Year Ended 31 December 2023 Investor Presentation [date]
Slide 8: Income statement
Income statement $ Million 31 December 2023 Actual 31 December 2022 Actual %PCP Change Observations Revenue • Revenue has increased 28% compared to the prior comparative period. Contract revenue 154.7 152.1 2% • Wet lease revenue grew a further $65.6 million compared to prior period. Wet Lease reven
Slide 9: Statement of financial position
31 December 30 June Statement of %PCP $ Million 2023 2023 Change Actual Actual Cash 36.9 22.3 financial position Receivables Inventory 61.8 125.6 79.1 89.6 Observations Total Current Assets 224.3 191.0 2% • The lower receivables balance reflects the majority of debtors PPE & intangibles 611.7 563.6
Slide 10: Cash flow statement
Cash flow 31 December 31 December $ Million 2023 2022 Actual Actual statement Receipts from customers (incl GST) Payments to suppliers (incl GST) 326.5 (306.9) 262.4 (237.2) Observations: Net Interest (paid) / received (7.6) (4.7) • Receipts from customers reflect the increase in revenue. Income tax
Slide 11: Capital expenditure
1HY24 2HY24 Capital expenditure ($ in millions) Actual Forecast Existing fleet maintenance Cash outflows Base maintenance providers 14.7 12.2 Observations: Engine care program/Engine Maintenance 13.9 11.3 Other miscellaneous 6.6 2.0 • Existing fleet maintenance now incorporates Fokker and Embraer Op
Slide 12: Contract business model
Contract business model FIFO Contract Wet Lease Contract Passenger Revenue Risk No No Customers Blue chip resources and energy companies Major Australian airlines Built into the charter rate with a mechanism in the Direct costs such as fuel, airport contract allowing for variations in fuel and other
Slide 13: Contract Charter business model
Contract Charter business model Contract 15 Contract 14 Contract 13 Contract 12 Contract 11 Contract 10 Contract 9 Contract 8 Contract 7 Contract 6 Contract 5 Contract 4 Contract 3 Contract 2 Contract 1 Jul 18 Dec 18 Jul 19 Dec 19 Jul 20 Dec 20 Jul 21 Dec 21 Jul 22 Dec 22 Jul 23 Jan 24 Jul 24 Dec 24
Slide 14: Driving Growth
Need to update photo’s throughout – currently same as 2020 placement Driving Growth Investor Presentation [date]
Slide 15: Growing fleet driving growth
Growing fleet driving growth Aircraft in service The total aircraft in service has more than doubled over the past five years with the expansion into E190 aircraft. This has underpinned significant growth for the Company. Number of Aircraft in Service by Type 70 60 31 33 50 5 19 40 - - - 30 24 24 -
Slide 16: Expanding the E190 fleet for growth
Expanding the E190 fleet for growth Fleet Acquisition Funding • Alliance has entered a sale and purchase agreement to acquire 30 x • The two AerCap aircraft that have been delivered were delivered with a E190s from AerCap (the AerCap Deal).1 Subsequent to this Alliance materially higher amount of en
Slide 17: Strategy and outlook
Strategy and outlook Alliance retains a positive outlook for the remainder of the 2024 financial year as it continues to capture the growth from the recent capital investment. Observations: • The recent capital investment continues to • An additional 28 aircraft are due for deliver significant uplif
Slide 18: Other Information
Need to update photo’s throughout – currently same as 2020 placement Other Information Investor Presentation [date]
Slide 19: Expansive national footprint
Expansive national footprint Contract Charter Alliance has crew and engineering bases in nearly every Australian capital city and a number of regional ports being Townsville, Cairns and Rockhampton. This is a notably greater regional presence than other Australian operators. This improves Alliances
Slide 20: Expansive national footprint
Expansive national footprint Contract Wet Lease Alliance’s wet lease operations are based on a fixed schedule with seasonal fluctuations. Under contracted wet lease Alliance has operated to every state in Australia HY24 Presentation 20
Slide 21: Rockhampton hangar
Rockhampton hangar Operational Update • Handover of site occurred on 1st November 2023. • Staff numbers currently sit at 12.1 FTE. • Apprenticeship training has commenced with three apprentices employed. • First aircraft inducted on 3 November 2023. Business Outcomes • In-house heavy maintenance all
Slide 22: Superior operational performance
Superior operational performance On time performance comparison Safety certifications The Alliance on time performance record is one of its major Safety is one of Alliances three key performance indicators and part of its differentiating factors and a key driver of its exceptional track record of cu
Slide 23: Partnership with Breast Cancer Network Australia
Alliance Airlines has been a deeply committed partner of Breast Cancer Network Australia (BCNA) since 2015. Never one to do things by halves and motivated by the courage of the breast cancer survivors they have met through BCNA, in 2019 Alliance committed to the magnificent “Pink Lady VH-NUU” aircra
Slide 24: Disclaimer
Disclaimer Reliance on third party information This presentation was prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance”). Certain market and industry data used in this presentation may have been obtained from research, surveys or studies conducted by third parties, includin
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