Slide 1: 2017 Final Results Review
2017 FINAL RESULTS REVIEW Information Slides 14 March 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: 2017 Overview
2017 OVERVIEW ©) BOC AVIATION 3
Slide 4: An Excellent 2017
An Excellent 2017 Record earnings Robust balance sheet US$587 million 40% US$16.0 billion 19% Total assets Net profit after tax US$0.85 40% US$3.8 billion 13% Total equity Earnings per share1 US$5.50 13% Net assets per share1 Driven by: US$1,401 million 17% Increasing dividend payout Total revenues
Slide 5: Strong Operational Performance in 2017
Strong Operational Performance in 2017 • Ended 2017 with total fleet of 4911 • Portfolio utilization of 99.8% and cash collection rate of 99.9% • Average fleet age of 3.0 years2 • Average lease term remaining extended to 8.2 years2 • Record delivery of 74 aircraft3 • Introduced new technology aircra
Slide 6: Record Financials
Record Financials NPAT growth driven by growth in leasing Fleet growth underpins lift in revenues portfolio and adjustment of US tax provision US$ million US$ million 1,401 587 1,193 Tax 1,091 91 988 adjustment 919 418 343 309 277 496 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Continued growt
Slide 7: 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 US$ million 2.1% Others 1,401 Net gain on sale of 0.7% 1,193 78 aircraft 91 5.6% 1,284 1,048 2016 2017 Lease rental income Net gain on sale of aircraft Lease rental income
Slide 8: Consistently High Net Lease Yield Drives Profitability
Consistently High Net Lease Yield Drives Profitability Higher lease rate factor1 reflects increased ... with a higher proportion of fixed rate debt fixed rate leases affecting finance expenses4 10.5% 2.8% 10.3% 2.5% 1.9% 1.9% 2.0% 9.9% 9.8% 9.7% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Prop
Slide 9: Diversified Portfolio Delivers High Utilization, High Collection Rate
Diversified Portfolio Delivers High Utilization, High Collection Rate Lease portfolio diversified by customer1,4 …and diversified by geography1,4 EVA Airways Middle East and Africa 7.3% Qatar Airways 9.1% 6.7% Cathay Pacific Americas Chinese Mainland, 4.6%2 13.1% Hong Kong SAR, Air China Macau SAR a
Slide 10: Long-term, Stable and Contracted USD Cash Flows
Long-term, Stable and Contracted USD Cash Flows Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3,4 200 73.6% 80% By net book value 150 Average remaining lease term of 8.2 years 60% 34% 56% 46% 100 40% 74% 65% 187 50 2.8% 4.1% 5.6% 3.4% 7.4% 20% 0.4% 19 66% 10 18 13 44%
Slide 11: Flexible and Well-Funded Capital Structure
Flexible and Well-Funded Capital Structure Sources of debt1 Outstanding debt amortises over nine years US$ billion BOC BOC ECA2 3% ECA2 10 2% 14% 10% Loans Loans 8 32% 34% 6 4 Bonds Bonds 51% 54% 2 0 2018 2019 2020 2021 2022 2023 and 2016 2017 beyond Total loans outstanding Total bonds outstanding I
Slide 12: 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 135 11 3 149 Airbus A320NEO family 5 0 61 66 Airbus A330CEO family 12 7 0 19 Airbus A330NEO family 0 0 2 2 Airbus A350 family 2 0 4 6 Boeing 737NG fam
Slide 13: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Growing balance sheet Committed deliveries of 173 aircraft until 2021 US$ billion Number of aircraft 16.0 53 53 13.4 2.3 12.5 11.4 41 10.1 2.7 1.5 2.8 11 1.0 26 13.7 9.9 9.7 10.7 9.1 2013 2014 2015 2016 2017 2018 2019 2020 2021 Aircraft NBV Other asset
Slide 14: 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$15 billion US$ billion US$ billion + PV of excess returns from leases +US$1.7bn premium of current market value1 ? 3.8 over aircraft NBV 1.7 15.3 11.5 13.7 NBV Premium over
Slide 15: Core Leasing Business Anchors Earnings Growth
Core Leasing Business Anchors Earnings Growth c.80% of PBT is from core lease rental … and rises with fleet NBV contribution1 28% Interest, fee income and others 7% 22% Net gain on sale of aircraft 14% 10% 9% Core lease rental contribution 79% -2% 2013 2014 2015 2016 2017 We have a longer average re
Slide 16: Conclusion
Conclusion • Delivered the best performance in Company history in 2017 • NPAT increased 40% to US$587 million • Driven by fleet growth and tax adjustment in USA • ROE of 16.3% • Dividend payout ratio raised to 35% • Total dividends increased 64% year-on-year to US$0.2958/share • Improved long-term r
Slide 17: 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 17