Avation Plc · LSE:AVAP
Avation — FY2016 Earnings Presentation
16 slides from Avation's earnings presentation, Sep 8, 2016
Slide 1: Financial Year 2016 - Investor Update
Financial Year 2016 - Investor Update 8 September 2016 Presented by: Jeff Chatfield Richard Wolanski Robert Heese Iain Cawte Executive Chairman/CEO Finance Director Chief Financial Officer Treasury & Risk
Slide 2: Forward Looking Statements
Forward Looking Statements Cautionary Disclaimer Regarding Forward Looking Statements This release contains certain “forward looking statements”. Forward looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” or w
Slide 3: FY 2016 Overview
FY 2016 Overview US$71.2 million US$45.6 million Lease Revenue Operating Profit (EBIT) +25.0% YoY +35.6% YoY US$18.3 million US$725.0 million Total Profit after Tax Fleet Assets +37.6% YoY +67.0% YoY US 34.2 cents US 3.25 cents Earnings per Share Dividend per share +42.5% YoY +8.3% YoY 3
Slide 4: 2016 Operational Highlights
2016 Operational Highlights Growth & Diversification • Net 9 aircraft added to the fleet • First sale & leaseback aircraft delivered to Thomas Cook • VietJet sale & leaseback contract, now for 6 Airbus A321 jet aircraft • Added 4 new airline customers Fleet metrics • Weighted average fleet age decre
Slide 5: Profitability & Cost Review
Profitability & Cost Review Operating Profit Margin Total Profit after Tax Margin 64.0% 25.7% 2015: 59.0% 2015: 23.3% Administrative Expense/ Administrative Expense Lease Revenue $7.5 million 10.6% Growth 4.9% 2015: 12.6% Average Cost of Debt* Average Cost of Secured Debt* 4.8% 4.3% 2015: 5.1% 2015:
Slide 6: Industry Update
Industry Update Aircraft Leasing Industry • Trend towards 1 in 2 aircraft being owned by lessors • Lessors are a key source of aircraft finance • Over 39,000 new aircraft projected to be delivered by 20351 Global Passenger Traffic 2 • IATA passenger growth forecast of 6.2% in 2016 • Airline average
Slide 7: Strategic Objectives
Strategic Objectives Strong Diversify Fleet revenue Metrics Increase Profit Scale & Control Growth Costs 7
Slide 8: Market Positioning
Market Positioning Avation is: • Narrowbody commercial aircraft lessor • Asia-Pacific and Europe focus • World's second largest lessor of ATR aircraft by number ordered • US$ revenue, assets and dividend Avation is not: • Exposed to widebody aircraft • Exposed to Latin America, Africa or Russia • Ov
Slide 9: Fleet Overview (at September 2016)
Fleet Overview (at 7 September 2016) Aircraft Type Fleet Orders Options ATR 72-600 18 9 27 ATR 72-500 6 - - A321-200 7 3 - A320-200 3 - - Fokker 100 5 - - Total 39 12 27 100% utilisation as at 30 June 2016 9
Slide 10: Fleet Growth
Fleet Growth Fleet assets (US$m) 800 600 400 200 0 2011 2012 2013 2014 2015 2016 10
Slide 11: Fleet Metrics
Fleet Metrics Period FY 2013 FY 2014 FY 2015 FY 2016 Fleet (at end of financial year) 23 25 29 38 Fleet additions (net) 8 2 4 9 Weighted average fleet age 6.0 yrs 6.1 yrs 5.3 yrs 4.2 yrs Weighted average lease term 6.6 yrs 7.1 yrs 6.5 yrs 6.8 yrs Weighted Average Age of Fleet (years) Weighted Averag
Slide 12: Financial Overview
Financial Overview Profit & Loss Summary (US$ million) FY2016 FY2015 Growth Lease Revenue and Other Income 74.2 60.1 23.5% Depreciation expense (23.2) (17.8) 30.5% Gains on sale (net of impairment) 2.8 (0.7) Administration expense (7.5) (7.2) 4.9% Other expenses (0.7) (0.8) Operating Profit/EBIT 45.
Slide 13: Debt Analysis
Debt Analysis FY2016 FY2015 Net Indebtedness (US$ million) 567.5 319.4 Weighted Average Cost of Debt 4.8% 5.1% Weighted Average Cost of Secured Debt 4.3% 4.4% Proportion of Fixed Interest Rate Debt 91.6% 92.0% Cost of debt 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1H 2013 2H 2013 1H 201
Slide 14: Key Ratios
Key Ratios Comparative Ratios FY2016 FY2015 Return on Equity (A) 12.9% 13.0% Cash Administrative Expense/ Lease Revenue (B) 10.1% 12.1% Credit Ratios Debt/Total Assets 74% 73% Average Net Leverage (C) 2.9 2.5 Debt/EBITDA (D) 8.8 8.2 EBITDA/Interest Expense 2.6 3.0 A. ROE = (Lease Revenue + Other Inc
Slide 15: Summary
Summary Record Revenue & Profit Industry Leading Growth Strong Fleet Metrics Cost Control & Improved Margins Experienced Management Improved Risk Profile 15
Slide 16: Avation PLC (LSE: AVAP)
Avation PLC (LSE: AVAP) 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Richard Wolanski Robert Heese Iain Cawte Executive Chairman Finance Director Chief Financial Officer Treasury & Risk jeff@avation.net richard.w@avation.net robert@avation.net iain@avat