Slide 1: Financial Year 2023 Results
Equity Ticker LSE: AVAP Bond Ticker LU: AVTCAP Financial Year 2023 Results 28 September 2023 Jeff Chatfield Iain Cawte Duncan Scott Ashley Nicholas Executive Chairman Chief Financial Group General Corporate Finance Officer Counsel Director
Slide 2: Important Notice
Important Notice Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect the Company’s current intentions, plans, expectations, assumptions and beliefs about future ev
Slide 3: Overview
avation PLC Overview
Slide 4: Snapshot of Avation as at June 2023
Snapshot of Avation as at 30 June 2023 Diversified Fleet and Customer Base 18%/51%/31% 36 17 Airline Customers split of located in 14 Widebody/narrowbody Aircraft Customers /turboprop aircraft by Countries value 6.4 Years 5.0 Years US$1.2bn US$492Mn Weighted Average Total asset value (1) Unearned co
Slide 5: Aircraft Portfolio as at June 2023
Aircraft Portfolio as at 30 June 2023 Popular aircraft with low average age Balanced Fleet with Valuable Orderbook and Purchase Rights that By Aircraft Value create a significant growth opportunity Purchase Aircraft Type Fleet Orders Rights Turboprop Aircraft ATR 72-600 16 2 28 Turboprop ATR 72-500
Slide 6: Airline Customers
Airline Customers 17 Airline Customers in 14 Countries Airline Aircraft Number Vietjet A321-200 6 Air Baltic A220-300 5 Hevilift ATR 72-500 3 Mandarin ATR 72-600 3 Alliance Air ATR 72-600 2 Braathens ATR 72-600 2 Danish Air ATR 72-600 2 Transport US Bangla ATR 72-600 2 EVA Air A330-300 1 Philippine
Slide 7: Highlights FY2023
Highlights FY2023 Aircraft Sales • 2x ATR 72-600 returned and sold (October 2022) • Boeing 737-800 sold (February 2023) Aircraft Leases • New lease for an ATR 72-500 with an airline in Nepal • Ex-Virgin Australia ATR 72-600 will be delivered to a new customer in Nov 2023 Aircraft transitions • Ex-GM
Slide 8: FY2023 Results
avation PLC FY2023 Results
Slide 9: FY 2023 Summary
FY 2023 Summary Total Income Operating Profit US$99.3 million US$70.6 million FY 2022: $116.4 million FY 2022: $90.2 million Profit before tax Profit after tax US$13.0 million US$12.2 million FY 2022: $22.5 million FY 2022: $17.1 million Total Assets Net Indebtedness (1) US$1.18 billion US$731.2 mil
Slide 10: Debt Analysis
Debt Analysis FY2023 FY2022 Total loans and borrowings (US$ million) 756.0 828.1 Net indebtedness (US$ million) 731.2 792.9 Weighted average cost of debt 6.1% 5.7% Weighted average cost of secured debt 4.5% 4.0% Proportion of fixed/hedged interest rate debt 95.8% 90.0% Net Debt/Assets 62.0% 65.1% Co
Slide 11: Key Ratios
Key Ratios Comparative Ratios FY2023 FY2022 Net asset value per share (US$) (A) $3.41 $3.27 Net asset value per share (£) £2.69 £2.68 Lease yield (B) 9.7% 9.5% Admin expense (ex warrants)/Revenue (C) 8.3% 7.2% Credit Ratios Debt/Equity (D) 3.1x 3.6x Net debt/EBITDA 8.0x 7.9x Debt/Total assets (E) 64
Slide 12: Liquidity Update as at June 2023
Liquidity Update as at 30 June 2023 FY2023 FY2022 Maturities and loan covenants: Total cash $116.9m $119.2m Loan maturities typically match lease durations. Unrestricted $24.8m $35.3m All debt current, covenants complied Restricted $92.1m $83.9m with. Finance lease $45.1m $60.8m Unsecured Bonds:
Slide 13: Liability Structure & Loan Maturities
Liability Structure & Loan Maturities 13
Slide 14: Assets Managed per Employee
Assets Managed per Employee 14
Slide 15: Pathway Forward & Strategy
Pathway Forward & Strategy 15
Slide 16: FY2024 Focus
FY2024 Focus • Expand the sustainable low CO2 green opportunity in the ATR orderbook • Lease ordered ATR72-600 aircraft • Maintain focus on liquidity • Identify opportunities to widen customer base with ATR purchase rights 16
Slide 17: Future Strategy
Future Strategy Carbon price rising, EU regulations to increase SAF usage: The EU carbon price climbed above EUR 100 ReFuelEU regulations aim to increase the use per tonne for the first time in Feb’2023: of SAF by aircraft and reduce emissions: ATR aircraft will be first to be certified with 100% SA
Slide 18: Future Strategy
Future Strategy Avation is focusing on fuel efficient, low Co2 emission aircraft opportunities to support sustainable aviation: ATR are aiming for 100% SAF capability by 2025, which is ahead of all other aircraft OEM’s. Avation holds purchase rights for 28 ATR aircraft. 18
Slide 19: Conclusion
Conclusion Aviation sector bounce back Return to profitability and lower leverage Operational efficiency returning to fleet Strategic alignment to sustainable future Positioned for recovery and growth 19
Slide 20: Question & Answer Section
Question & Answer Section Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Duncan Scott Iain Cawte Ashley Nicholas Executive Chairman Group General Counsel Chief Financial Officer Corporate Finance Director jeff@avation.net duncan@avation.net ia