Boc Aviation Limited · HKEX:2588
Boc Aviation — FY2024 Earnings Presentation
32 slides from Boc Aviation's earnings presentation, March 2025
Slide 1: 2024 Final Results Review
2024 FINAL RESULTS REVIEW MARCH 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: 2024 Overview
2024 OVERVIEW © Boc AVIATION
Slide 4: Reaching New Highs
Reaching New Highs 2024 2023 Change US$ million US$ million Total revenues and other 2,557 2,461 4% income Profit before tax 1,039 861 21% 924 764 21% Net profit after tax 1.33 1.10 21% Earnings per share (US$) Substantial improvement in key metrics 4
Slide 5: Consistent Improvement in Core Business
Consistent Improvement in Core Business +4% +16% 291 US$ million 924 633 527 547 Core NPAT 1 Core NPAT 1 Core NPAT 1 Aircraft and insurance Reported NPAT recovery 2022 2023 2024 Record performance reflects underlying business growth and success in Russia-related recoveries Note: 1. Excludes the net
Slide 6: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity 2024 2023 Change Total assets (US$ billion) 25.1 24.2 4% Total liquidity (US$ billion) 6.5 5.6 16% Total equity (US$ billion) 6.4 5.7 11% Net assets per share (US$) 9.17 8.28 11% Gross debt to equity (times) 2.6 2.9 0.3x Total assets exceeded US$25 billion for the
Slide 7: Record High Annual Dividends
Record High Annual Dividends US$ 0.47 0.39 0.35 0.31 0.27 0.30 0.28 0.26 0.27 0.22 0.27 0.18 0.18 0.19 0.12 0.17 0.18 0.12 0.20 0.13 0.14 0.14 0.10 0.11 0.11 0.09 0.06 2016 2017 2018 2019 2020 2021 2022 2023 2024 Interim dividend Final dividend Total dividend per share of US$0.4658 in 2024 May not s
Slide 8: 2024 Highlights
2024 Highlights Record net profit after tax All aircraft on lease US$924 million Utilisation rate > 99% Robust portfolio quality Successful Russia-related recoveries Collection rate > 100% 100% recovery rate 31 years of unbroken profitability 8
Slide 9: How We Invest
How We Invest Number of aircraft delivered, purchased and sold Global European Opportunistic PLB Financial Covid-19 Crisis acquisitions in the Crisis down cycle 41 19 45 24 13 9 16 14 41 22 45 27 (3) 16 7 4 6 41 9 22 17 29 12 14 31 18 21 43 5 58 61 6 5 48 50 17 5 25 12 41 44 27 31 17 22 22 23 17 21
Slide 10: Total Portfolio Exceeded 700 Aircraft and Engines
Total Portfolio Exceeded 700 Aircraft and Engines Our portfolio Asset Type Owned Managed On Order1 Total Airbus A220 family 23 0 0 23 Airbus A320CEO family 68 13 0 81 Airbus A320NEO family 140 0 129 269 Airbus A330CEO family 8 1 0 9 Airbus A330NEO family 6 0 0 6 Airbus A350 family 9 0 0 9 Boeing 737
Slide 11: Lease Rental Income Continues to Drive Revenue
Lease Rental Income Continues to Drive Revenue Lease rental income drives total revenues and other income US$ million Other income1 2,461 2,557 15% Lease rental income Net gain on sale of 403 78 372 118 72% 217 aircraft 69 5% 1,911 1,850 Finance lease income Total 8% revenues 2023 2024 Lease rental
Slide 12: Higher Gains on Aircraft Sales Deliver Additional Business Value
Higher Gains on Aircraft Sales Deliver Additional Business Value Average appraised values > aircraft NBV Gains on aircraft sales margin 15% 11% 11% 8% 5% Average 2022 2023 2024 age of -1% aircraft 2022 2023 2024 6+ 6+ 9+ sold (years) Gains on sale are above long-run average of 9% 12
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 74.4% 80% 8.1 8.1 7.9 300 Average remaining lease term of 7.9 years 60% 200 40% 100 5.3% 9.0% 8.7% 20% 1.2% 1.4% 0 0% 2026 2027 2028 2029 2030 2031 and beyond N
Slide 14: Operating Lease Yields Rising
Operating Lease Yields Rising Operating lease rate factor1 Net operating lease yield3 10.0% 10.0% 9.2% 7.1% 7.2% 7.0% 2022 2023 2024 Cost of debt2 4.5% 4.1% 3.1% 2022 2023 2024 2022 2023 2024 Notes: 1. Calculated as operating lease rental income divided by average aircraft net book value and multipl
Slide 15: Globally Diversified Portfolio
Globally Diversified Portfolio Lease portfolio diversified by customer1 …and diversified by geography1 American Airlines 10.3% Middle East and Africa 9.7% JetBlue Airways Americas 6.8% 33.6% Europe Qatar Airways 16.3% 6.6% Others IndiGo 66.6% 5.3% Asia Pacific (excluding Chinese Mainland, Chinese Ma
Slide 16: Robust Growth in Cash Flow
Robust Growth in Cash Flow Collection rate exceeded 100% for the Net cash flow from operating activities third consecutive year US$ million 2,566 100.8% 101.3% 100.8% 2,283 2,009 2022 2023 2024 2022 2023 2024 2024 operating cash flow net of interest1 Improving operating cash flow net of interest1 US
Slide 17: Diverse Funding Channels Utilised in 2024
Diverse Funding Channels Utilised in 2024 Sources and Uses of Cash Sources Uses US$ million 465 (2,472) 6,491 1,170 1,715 (2,300) 1,500 Undrawn committed 5,820 credit 1,851 (1,301) facilities (349) 392 Cash & 671 1 cash Cash and Operating Bond Bank loans Asset sales Net RCF Capex Bond Loan Dividends
Slide 18: Flexible Capital Structure
Flexible Capital Structure Sources of debt Asset and liability profile Loans Loans 41% 46% Floating rate Floating rate 10% 18% Bonds Bonds 59% 54% 2023 2024 Fixed rate Outstanding debt maturity profile 48% Fixed rate US$ billion 88% 3.5 3.1 Others 2.6 2.8 2.3 2.4 9% Equity 25% Others 2% 2025 2026 20
Slide 19: Rising 2025 Deliveries
Rising 2025 Deliveries Orderbook delivery schedule1 Total committed capex in excess of US$12 billion Number of aircraft US$ billion 90 6.7 64 5 2 47 90 11 36 4 2.7 59 1.6 36 32 1.1 2025 2026 2027 2028 and 2025 2026 2027 2028 and beyond beyond Orderbook Purchase and leaseback Continuing to build a st
Slide 20: Conclusion
Conclusion US$924 16% US$327 >US$12 US$2.6 million YoY million billion billion Robust core NPAT Record total Record capex Record aircraft Record NPAT1 growth dividend paid pipeline value premium2 Record breaking 2024; strong foundation for growth in 2025 Notes: 1. Including Russia-related recoveries
Slide 21: Appendices
APPENDICES © Boc AVIATION
Slide 22: About Us
About Us Bank of China Listed on HKEX Ownership 70% owned by BOC (2588 HK) Top 5 92 customers in 48 countries Market position Global aircraft operating lessor1 and regions 31 years >US$7.1 billion Profit track record Of unbroken profitability Cumulative profits since inception US$25.1 billion D/E ra
Slide 23: Our Management Team
Our Management Team Steven Townend Wen Lan Tom Chandler Paul Kent Max Qian Chief Executive Officer Chief Financial Chief Operating Chief Commercial Chief Commercial & Managing Director Officer Officer Officer Officer (Asia Pacific & the Middle East) • 34 years of banking • 26 years of banking • 28 y
Slide 24: Core Competencies - BOC Aviation Track Record
Core Competencies - BOC Aviation Track Record Since inception in 1993: •• Purchasing Purchasing More than 1,150 aircraft purchased totalling more than US$65 billion •• Leasing Leasing More than 1,400 leases executed with > 190 airlines in > 60 countries and regions •• Financing 1 Financing More than
Slide 25: The BOC Aviation Journey – 31 Years in 2024
The BOC Aviation Journey – 31 Years in 2024 Ownership Total assets 1993 SALE established with 50:50 joint ownership US$ 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 26: Industry Will Need to Fund Around US$100 Billion of Aircraft in 2025
Industry Will Need to Fund Around US$100 Billion of Aircraft in 2025 Passenger aircraft deliveries Passenger aircraft >100 seats1,2 Narrowbody Widebody 2,000 1,880 1,634 1,622 1,516 1,500 1,376 1,214 1,200 1,103 1,129 1,000 950 716 1,589 1,271 1,359 1,134 1,181 500 986 1,037 991 819 817 539 0 2017 2
Slide 27: Aircraft Supply Remains Extremely Tight
Aircraft Supply Remains Extremely Tight Passenger aircraft deliveries Passenger aircraft deliveries Passenger aircraft >100 seats1, 2017-2027 2,200 Delivered aircraft/forecast Pre-2019 forecast 2,000 1,800 1,600 > 5,000 aircraft not 1,400 produced 1,200 1,000 800 600 2017 2018 2019 2020 2021 2022 20
Slide 28: Parked Aircraft Availability Continues to Reduce
Parked Aircraft Availability Continues to Reduce 25% 20% 15% WB stored 10% NB stored NB stored 5% (ex GTF) 0% Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Total NB stored Total NB stored (ex-GTF) Total WB stored Reflected in falling parked aircraft numbe
Slide 29: Growing Lessors’ Share of the Market
Growing Lessors’ Share of the Market Proportion of fleet on operating lease 25% 29% 42% 48% 50% 1990 2000 2010 2020 2024 Lessors own 50% of the aircraft market today Source: Ascend, BOC Aviation’s analysis as at 31 December 2024 based on aircraft of 100 seats. Fleet data in 2020 included aircraft in
Slide 30: Improving Airline Industry Profits
Improving Airline Industry Profits IATA global airline industry net post-tax profit Estimated / Forecast by IATA Economics, US$ billion 40 35 34 38 35 32 37 20 0 -20 -40 -60 -80 -100 -120 -140 2022 2025F 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 2024 2011 Source: IATA Economics as
Slide 31: APAC Airlines Drive Global Passenger Demand Growth
APAC Airlines Drive Global Passenger Demand Growth Global and regional total passengers, year-on-year % change 16% 11% 9% 7% 6% 6% 5% 4% 2024 2025 2026 2027 Asia Pacific World Airlines in Asia Pacific expected to grow faster than any other region for the next three years Sources: IATA Air Passenger
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