Avation Plc · LSE:AVAP
Avation — FY2015 Earnings Presentation
14 slides from Avation's earnings presentation, Sep 8, 2015
Slide 1: Financial Year 2015 - Investor Update
Financial Year 2015 - Investor Update 8 September 2015 Presented by: Jeff Chatfield Richard Wolanski Iain Cawte Executive Chairman/CEO Finance Director Chief Financial Officer
Slide 2: Forward Looking Statements
Forward Looking Statements Cautionary Disclaimer Regarding Forward Looking Statements This presentation contains certain “forward‐looking statements”. Forward‐looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,”
Slide 3: 2015 Highlights
2015 Highlights Revenue Growth • Total fleet increased to 29 aircraft • Leasing revenue increased 17% of US$56.9 million • Lease yield 13.1% Net Income • Net profit after tax of $13.3 million • EPS of 24.1 cents per share • Improved leasing business fundamentals Dividend • Dividend increase of 49% t
Slide 4: Industry Update
Industry Update Aircraft Leasing Industry • Trend towards 1 in 2 aircraft being owned by lessors • Lessors intrinsic in the aircraft delivery cycle Global Passenger Traffic • IATA forecast increase of 6.7% in 2015 • Airline load factor of +80% Airline Profitability • IATA forecast record year for 20
Slide 5: Strategic Objectives
Strategic Objectives Fleet Diversify Growth revenue To Improve Profit Scale
Slide 6: Leasing Business Fundamentals
Leasing Business Fundamentals Summary (US$ millions) 2015 2014 Growth Lease revenue (A) 56.9 48.7 17% Lease Yield 13.1% 13.3% Interest Expense (B) 17.3 15.6 11% Interest Expense/Lease Revenue (B/A) 30.4% 32.0% Administration Expense (ex warrant expense) (C) 6.9 7.0 (1%) Administration Expense/Lease
Slide 7: Fleet Overview (as at 31 August 2015)
Fleet Overview (as at 31 August 2015) Aircraft Type Fleet Ordered Options ATR 72-600 13 9 22 ATR 72-500 6 - - A321-200 3 2 - A320-200 2 1 - Fokker 100 5 - - Total 29 12 22 Avation fleet is 100% utilised as at 30 June 2015
Slide 8: Fleet Metrics
Fleet Metrics Financial Years 2013 2014 2015 Fleet (at end of financial year) 23 25 29 Fleet additions (net) 8 2 4 Weighted average fleet age 6.0 yrs 6.1 yrs 5.3 yrs Weighted average lease term 6.6 yrs 7.1 yrs 6.5 yrs Weighted average age of fleet (years) 5.3 7-14 0-7 14-20
Slide 9: Fleet Growth Strategy
Fleet Growth Strategy Financial Year 2016 Acquisition Status • 7 new ATR 72-600 turboprop aircraft 5 committed to Flybe (6+6 year leases) • 2 new Airbus A321 jets sale & leaseback Thomas Cook (12 year leases) • 1 Airbus A320 jet on lease to Air France acquisition to be completed • Total identi
Slide 10: Financial Overview
Financial Overview Profit & Loss Summary (US$ millions) 2015 2014 Growth Lease revenue 56.9 48.7 17% Other income 3.2 3.4 (Loss)/Gain on sale of aircraft (A) (1.9) 2.8 Depreciation expense (17.8) (14.6) 22% Finance expense (includes Finance income) (18.1) (16.6) 9% Administration expense (7.2) (7.0)
Slide 11: Debt Analysis
Debt Analysis As at 30 June 2015 2014 Net Indebtedness 317.7 257.8 Weighted Average Costs of Debt 5.1% 5.2% Weighted Average Costs of Secured Debt 4.4% 5.0% Net Debt/Equity 2.5 2.3 Debt/ Total Assets 72.7% 67.6% Weighted Average Cost of debt 10.00% 8.00% 6.00% 4.00% 2.00% FY 2013 FY 2014 FY 2015 Sec
Slide 12: Key Ratios
Key Ratios Comparative Ratios 2015 2014 Lease Yield (A) 13.1% 13.3% Adjusted Interest Expense (B) 4.9% 5.7% Adjusted Net Margin (A – B) 8.2% 7.5% Administrative Expense/ Lease Revenue 12.6% 14.3% Adjusted Pretax core RoE (ex Trading) (C) 12.3% 11.1% Leasing Cash Operating Margin 57.5% 53.7% Credit R
Slide 13: Summary
Summary Strong Business Fundamentals Transformed Capital Structure Strong Fleet Age & Lease Term Profile Positioned for Growth, Scale and Diversification Experienced Management
Slide 14: Question & Answer Section
Question & Answer Section Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Richard Wolanski Iain Cawte Executive Chairman Finance Director Chief Financial Officer jeff@avation.net richard.w@avation.net iain@avation.net