Slide 1: 2015 Financial Reports: Full Year Results Presentation
2015 FINANCIAL REPORTS ‘Trerchave been a numberof factors that have infuerced the 2015 franca rests of Alance LG These relude: @ "Changes toa number of contracsin the fst | bal the year r * + The redcton inthe fuelprice which hashed _animpacton the headine even rrr 35 ‘this benefits passed through t
Slide 2: 2015 Financial Reports
2015 FINANCIAL REPORTS Therehavebeenarumber otic thatave berced the 7015 rales Abo LG ‘These include: ‘Z Ganges to armbar of concn thei 5 fat eyo F ? Alhance AIRLINES ' * FLYING CONTRACTS ggipcucss ae ee 4 contacts btn he esoues anos fits iaostecgicaes Full Year Results Presentation aa ES Alliance c
Slide 3: Key Messages
KEY MESSAGES Derived an underlying net profit after tax + Succes of $13.2 million. An increase of 21% from on sub: the previous year. + Sold tv Actively managing fleet to improve net ass utilisation. Sold aircraft to reduce operating costs. 5 feeds year co Restructured major maintenance plan to redu
Slide 4: Summary Results
amnta HEH SUMMARY RESULTS - Delivered an underlying NPAT result of $13.2 million * Total Revenue of $199million - Increase in contracted flying hours - Reduced operating costs - Reduced total headcount by 18% - Reduced debt by $10 million during the year - Increased on time performance to 94%
Slide 5: Achievements
3ES tax 3m to st ACHIEVEMENTS - Successfully refinanced debt with ANZ and CBA on substantially the same terms. « Sold two Fokker 100 aircraft . Substantiates the net asset value of $0.99 per share. - Broadened revenue mix with a significant five year contract in the Tourism sector + Reduced debt. +
Slide 6: 2015 Financial Reports
2015 FINANCIAL REPORTS There have been a number of factors that have influenced the 2015 financial results of Alliance. These include: + Changes to a number of contracts in the first ie half of the year Fame we + The reduction in the fuel price which has had | Ne i an impact on the headline revenue
Slide 7: Underlying Income Statement
Underlying Income Statement ($ in millions) Revenue Contract Revenue Charter / ACMI Other Total revenue Operating expenses 2014/15 2013/14 Actual Actual 167.4 29.1 4.0 200.5 (159.0) EBITDA Margin % Depreciation EBIT Margin % Finance costs Income tax Underlying NPAT 415 23.1% (22.0) 19.5 9.7% (4.2) (
Slide 8: Summary Balance Sheet
(Sin millions) Cash Receivables Inventory Total currentassets PP&E Other assets Deferred tax asset Total non-currentassets Total assets Trade & other payables Borrowings Current tax liabilities Provisions / other Total currentliabilities Borrowings Deferred tax liability Provisions / other Total non
Slide 9: Cash flows from operating activities
2015 2014 #039;000 #039;000 Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) 213,841 232,706 Payments to suppliers (inclusive of goods and servicestax) (176,770) (193,755) Interest received and paid (5,182) (4,221) Income tax paid (5,245) Net cash inflow (
Slide 10: Flying Hours
FLYING HOURS Contracted flying hours increased during the year Flying hours FY 2015 FY 2014 FY 2013 Contracted Flying Hours 23,395 25,113 Wet Lease Flying Hours 2,351 6,827 Total Flying Hours 24,285 25,162 31,940 percentage of total flying hours a% o% 21%
Slide 11: Revenue Is Not the Only Indicator of Performance
REVENUE IS NOT THE ONLY INDICATOR OF PERFORMANCE Factors which affect the ''Gross Revenue" include: ¢ The amount of wet lease income which does not have the same operating costs - Fuel - The exchange rate A declining fuel price lowers the gross revenue of Alliance
Slide 12: A declining fuel price lowers the gross revenue of Alliance
A declining fuel price lowers the gross revenue of Alliance During the year the fuel HISTORICAL FUEL PRICES: MOPS ESCALATOR (AUD CPL) price declined sharply [runes] | [rama nee compared with previous a a rn “ years. This had an impact — ™ on the gross revenue — | numbers of Alliance which , “= would
Slide 13: Flying Contracts
FLYING CONTRACTS A National Footprint that now extends to New Zealand Alliance has maintained its existing 'blue chip' contracts whilst securing new contracts both in the resources and tourism sectors. Alliance continues to diversify its business. Longer Term Contracts Maintained with good tenure Ma
Slide 14: Longer Term Contracts Maintained with good tenure
Longer Term Contracts Maintained with good tenure During the year Alliance continued to work with existing customers to extend their term. Alliance has been very successful in retaining long term contracts. Major Contract Profile Contract Contract2 Contrat3 Contract4 Contract7 Contracts Contract 6 €
Slide 15: Alliance has a truly national presence with bases in key labour hubs
Alliance has a truly national presence with bases in all the key Australian labour hubs allowing it to service customers across the entire country CAIRNS 2S + Offices (engineering support and crew) + Line maintenance TOWN SVILLE + Offices + Hangar + Line maintenance GRISEANE(HERDOFRICE) __ + Offices
Slide 16: Major Commodity by Major Contracts
Major Commodity by 15 Major Contracts Phosphate NA Manganese 20% 2.0% 4.0% Silver 7.0% Copper / Gold 21.0% Magnette 8.0% Zinc / Lead 8.0% Iron Ore 20.0% Nickel Copper 9.0% 9.0%
Slide 17: Ability to cater for other markets and focus on adhoc charters
Ability to cater for other markets and to focus on the development of adhoc charters.
Slide 18: It is our performance which makes the difference
It is our performance which makes the difference - Australias most experienced and resourced F100/70 operator. - Low cost base allows low utilisation which means a reliable operation for our customers * Own outright 100% of the fleet + Maintained BARS Gold Recognition Status and now Wyvern "Wingman"
Slide 19: Stable Outlook
STABLE OUTLOOK - Maintain existing contract revenue within a challenging environment. - Adapt to changing industry needs. - Source new revenue streams. - Continue to focus on cost management. - Lower capital expenditure . « Consider reinstatement of the dividend for FY16. "Alliance is adapting and c
Slide 20: 2015 Financial Reports
2015 FINANCIAL REPORTS Therehavebeenarumber otic thatave berced the 7015 rales Abo LG ‘These include: ‘Z Ganges to armbar of concn thei 5 fat eyo F ? Alhance AIRLINES ' * FLYING CONTRACTS ggipcucss ae ee 4 contacts btn he esoues anos fits iaostecgicaes Full Year Results Presentation aa ES Alliance c