Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — FY2023 Earnings Presentation
28 slides from Alliance Aviation Services's earnings presentation, Aug 10, 2023
Slide 1: Alliance Aviation Services Limited Results Presentation
Need to update photo’s throughout – currently same as 2020 placement Alliance Aviation Services Limited Results Presentation For the Year Ended 30 June 2023 Investor Presentation [date]
Slide 2: Introduction to Alliance
Introduction to Alliance Alliance was founded in 2002, after it acquired the operating assets 21 96% 70 years On time Aircraft (including aircraft) from Flight West of operation performance all owned 1 Airlines. Alliance currently owns 70 aircraft of which 65 are in operational service and three are
Slide 3: The Alliance Attributes
The Alliance Attributes Contracted revenue from investment grade Company-owned fleet of jet aircraft well 1 4 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: FY2023 Highlights
FY2023 Highlights Revenue Underlying EBITDA $517.2m $127.0m Underlying Profit Underlying Operating before Tax Cash Flow $56.9m $45.6m Flight Hours Aircraft in Service 75,195 68 Investor Presentation – August 2023 4
Slide 5: Revenue Streams
Revenue Streams Flying Revenue Aviation Services Alliance generates revenue from the provision of flights to Alliance provides specialised aviation services to airlines customers, predominately under long term contracts. and clients. Services include: Contracted Fly-In-Fly-Out (FIFO) Flights operate
Slide 6: Contract business model
Contract business model Contract Revenue (FIFO Contract) Alliance provides long term contracted flight services (~57% FY2023 total revenue1, ,36% of flying hours) • Contract revenue covers agreements with non-airline customers that are over 12 months in under two types of agreements: Contract Revenu
Slide 7: Contract business model (cont’d)
Contract business model (cont’d) Contract Revenue (FIFO) Wet lease Contract Passenger revenue risk No No Blue chip resources and energy Customers Major Australian airlines companies Built into the charter rate with a mechanism in the contract allowing for Direct costs such as fuel, Incurred by the c
Slide 8: Operational Metrics
Operational Metrics Detail 30 June 2023 30 June 2022 Aircraft in service – Fokker 37 42 Aircraft in service – Embraer 31 19 Alliance is starting to realise the Flight Hours – contracted 27,143 26,926 economic benefits of its capital expansion programme. Flight Hours – wet lease 45,112 16,112 Increas
Slide 9: Financial Summary
Need to update photo’s throughout – currently same as 2020 placement Financial Summary For the Year Ended 30 June 2023 Investor Presentation [date]
Slide 10: Income Statement
Income Statement % PCP ($ in millions) 30 June 2023 30 June 2022 Change Actual Actual Revenue Contract revenue 297.0 257.8 15% Observations: Wet lease revenue 163.5 55.4 195% • Wet lease revenue experienced the most significant increase in Charter revenue 16.2 25.4 (36%) FY2023; RPT revenue 15.7 17.
Slide 11: Statement of Financial Position
30-Jun-23 30-Jun-22 ($ in millions) % PCP Change Statement of Actual Actual Cash 22.3 20.9 Financial Position Receivables 79.1 57.1 Inventory 89.6 82.4 Disposal grouped held for - 4.6 sale Observations: Total current assets 191.0 165.0 16% • Receivables increased during the period mainly as a result
Slide 12: Cash Flow Statement
($ in millions) 30 June 2023 30 June 2022 Cash Flow Receipts from customers (inclusive of GST) 533.1 415.4 Statement Payments to suppliers (inclusive of GST) (484.8) (354.9) Net interest (paid)/received (10.5) (6.6) Observations: Income tax paid 3.1 (1.5) Net cash inflow from operating activities 40
Slide 13: Capital Expenditure
30 June 2023 FY2024 ($ in millions) Actual Forecast Existing fleet maintenance Capital Expenditure Cash outflows Base maintenance providers (E190 and Fokker) 6.9 24.0 Engine care program/Engine 15.6 18.6 Maintenance Other miscellaneous 4.2 4.0 Operating costs capitalised 2.2 2.5 Observations: Total
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 Company-owned fleet The total aircraft in service has more than doubled over the past five • Alliance owns its total fleet. years with the expansion into E190 aircraft. This has underpinned significant growth for the Company. • Alliance has a track re
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 • Alliance expects to use a combination of free cash flow from acquire 30 x E190s from AerCap (the AerCap Deal).1 operations and debt to fund the acquisition. Alliance has put in • T
Slide 17: Strategy and Outlook
Strategy and Outlook Alliance retains a positive outlook for the 2024 financial year with economic benefits being Observations: realised from past capital investment. • Contract revenue continues to The past capital investment will begin to result in In 2020 Alliance embarked on a growth strategy in
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. Investor Presentation – August 2023 20
Slide 21: Rockhampton hangar
Rockhampton hangar Operational Update • Handover of site expected August 2023. • CASA certification has commenced and expected to be completed in September 2023. • Staff recruitment progressed. • Apprenticeship training has commenced. Business Outcomes • In-house heavy maintenance allows the Company
Slide 22: Focused on ESG outcomes
Focused on ESG outcomes Environmental Social Governance Alliance is committed to embracing Alliance is dedicated to supporting the people The Alliance Board has ultimate responsibility of opportunities to manage and reduce its impact and communities that it services and operates the Company and the
Slide 23: Focused on ESG outcomes (continued)
Focused on ESG outcomes (continued) Investor Presentation – August 2023 23
Slide 24: 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 the number one priority. Alliance is proud to hold IATA differentiating factors and a key driver of its exceptional track record of Operational
Slide 25: Fleet of jets suited to regional flying
Fleet of jets suited to regional flying Alliance has built its business as a specialist in Embraer E190 Fleet regional jet aircraft and has deep technical • 94-114 seat jet aircraft experience in operating this fleet. • Single and dual class configurations which have been well received from wet leas
Slide 26: Kirsten Pilatti, CEO 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 27: 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
Slide 28: Disclaimer (cont.)
Disclaimer (cont.) Future performance and forward-looking statements This Presentation contains certain “forward-looking statements”. The words “expect”, “anticipate”, “estimate”, “intend”, “believe”, “guidance”, “should”, “could”, “may”, “will”, “predict”, “plan” and other similar expressions are i
Alliance Aviation Services — FY2023 Earnings Presentation on 6ix