Slide 1: 2019 Final Results Review
2019 FINAL RESULTS REVIEW 11 MARCH 2020
Slide 2: Disclaimer
Disclaimer This presentation contains information about BOC Aviation Limited (“BOC Aviation”), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solic
Slide 3: 2019 Overview
2019 OVERVIEW ©) BOC AVIATION 3
Slide 4: A Record Year
A Record Year Stable earnings growth1 Robust balance sheet1 US$702 million 13% US$19.8 billion 8% Net profit after tax Total assets US$1.01 13% US$4.6 billion 9% Earnings per share Total equity Driven by: US$6.60 9% US$1,976 million 15% Net assets per share Total revenues and other income 8.4% Stabl
Slide 5: A Solid Performance in 2019
A Solid Performance in 2019 • 15th year of consecutive record earnings • ROE of 16% was one of our best years ever • Ended 2019 with total fleet of 523 – a new high • Comprised 317 owned, 40 managed and 166 on order • Capital expenditure of US$3.2 billion for 2019 • Took delivery of 54 aircraft1 • A
Slide 6: A Long-term Investor in Aircraft
A Long-term Investor in Aircraft • Senior creditor in airline cashflow, not airline equity • Highly diversified global customer base • 93 airlines in 41 countries and regions • Experienced management team has successfully led the Company through multiple cycles • Counter cyclical approach to investm
Slide 7: So Far in 2020
So Far in 2020 • Added another 42 aircraft to our orderbook • Announced the purchase of 20 Airbus A320NEO aircraft, scheduled for delivery in 2023 and 2024, ten of which have already been committed for lease • Committed to acquire 22 new Boeing 787 aircraft for lease to American Airlines, with deliv
Slide 8: Record NPAT
Record NPAT Fleet growth underpins growth in revenues Rising core lease rental contribution1 US$ million US$ million 1,976 695 1,726 662 555 1,401 1,193 420 450 1,091 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Continuing PBT Growth Robust NPAT performance US$ million US$ million 775 702 685 6
Slide 9: FY2019 NPAT Drivers
FY2019 NPAT Drivers Year-on-Year change (US$ million) Growth in revenues (+$250m) Changes in costs (-$168m) 45 (75) 43 (65) (28) 162 702 620 2018 NPAT Lease rental Net gain on Interest, fee Finance Aircraft costs Other costs 2019 NPAT income sale of aircraft income and expenses and tax others Robust
Slide 10: Lease Rental Income Continues to Dominate Revenue
Lease Rental Income Continues to Dominate Revenue Lease rental income consistently over 85% of total revenues and other income US$ million Interest, fee income and others 1,976 6.9% 1,726 138 Net gain on sale of 92 134 aircraft 91 6.8% 1,543 1,704 2018 2019 Lease rental income Net gain on sale of ai
Slide 11: Core Leasing Business Supports Earnings Growth
Core Leasing Business Supports Earnings Growth More than 70% of PBT is from core lease We have a long average remaining lease rental contribution1, net of costs term4 Others Number of years Interest and fee income 5% 2 8.2 8.3 8.4 6% 7.4 7.3 Net gain on sale of aircraft 17% Core lease rental contrib
Slide 12: Leasing Market Continues to Shift Towards Fixed Rates
Leasing Market Continues to Shift Towards Fixed Rates Lease rate factor1 reflects increased proportion Cost of debt3 reflects more fixed rate funding of fixed rate leases 3.6% 10.3% 10.5% 10.8% 10.7% 3.3% 9.9% 2.8% 2.5% 2.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Proportion of fixed rate
Slide 13: Stable Debt Structure
Stable Debt Structure US$ billion Loans 1.0 Loans (0.9) (0.8) Bonds (0.3) Bonds 2.1 13.5 12.5 Debt 11.3 10.5 10.5 10.5bn outstanding since 1 Jan 19 Indebtedness as at Repayment Net RCF Borrowing New Debt Indebtedness as at 1 January 2019 31 December 2019 80% of debt unchanged from 1 January 2019 and
Slide 14: Diversified Portfolio & Stringent Customer Selection Delivers High Utilization Rate
Diversified Portfolio & Stringent Customer Selection Delivers High Utilization Rate Lease portfolio diversified by customer1,2 …and diversified by geography1,3 Qatar Airways Americas 10.4% 6.9% EVA Airways 5.5% Middle East and Africa 12.4% Chinese Mainland, Hong Norwegian Kong SAR, Macau SAR 5.2% an
Slide 15: Long-term Contracted USD Leases
Long-term Contracted USD Leases Well-dispersed lease expiries1 Proportion of fixed rate leases rising steadily3 250 82.8% 100% By net book value 200 80% Average remaining lease term of 8.4 years 24% 17% 150 60% 34% 56% 46% 100 40% 76% 83% 50 6.5% 20% 54% 66% 0.0% 2.2% 2.2% 4.1% 44% 0 0% 2020 2021 20
Slide 16: Flexible Capital Structure and Ample Backstop Liquidity
Flexible Capital Structure and Ample Backstop Liquidity Sources of debt1 Outstanding debt amortises over a long term BOC US$ billion BOC 4% 2 3% ECA 2 ECA 12 7% Loans 5% Loans 10 26% 32% 8 6 Bonds Bonds 4 57% 66% 2 0 2020 2021 2022 2023 2024 2025 and 2018 2019 beyond Loans Notes Increasing unsecured
Slide 17: Popular and Fuel-Efficient Fleet
Popular and Fuel-Efficient Fleet Our aircraft portfolio Aircraft type Owned aircraft Managed aircraft Aircraft on order1 Total Airbus A320CEO family 116 15 0 131 Airbus A320NEO family 50 0 67 117 Airbus A330CEO family 12 3 0 15 Airbus A330NEO family 2 0 6 8 Airbus A350 family 9 0 0 9 Boeing 737NG fa
Slide 18: Orderbook Underpins Future Balance Sheet Growth
Orderbook Underpins Future Balance Sheet Growth Growing balance sheet Sustained annual capital expenditure since IPO US$ billion US$ billion 19.8 4.4 4.1 18.3 16.0 3.0 3.4 3.3 1.6 3.2 12.5 13.4 2.3 2.9 1.5 0.5 2.8 2.7 1.5 1.0 15.0 16.8 13.7 2.8 2.6 2.7 9.7 10.7 1.9 1.9 2015 2016 2017 2018 2019 2015
Slide 19: Value Driven by Fleet and Committed Lease Revenues
Value Driven by Fleet and Committed Lease Revenues Committed future revenues of more than US$18 Net book value understates business value billion US$ billion + PV of excess returns US$ billion on equity +US$1.3bn premium of current market value1 Commitments since 2019 2.0 over aircraft NBV ? year en
Slide 20: Conclusion
Conclusion • Record performance achieved in a difficult supply environment • NPAT increased 13% to US$702 million • 15th year of consecutive record earnings • Total dividends increased 13% to US$0.3541/share • High post-tax ROE of 16% • Total revenues increased 15% to around US$2 billion, driven by:
Slide 21: Appendices
APPENDICES ©) BOC AVIATION
Slide 22: The BOC Aviation Journey
The BOC Aviation Journey Ownership Total assets SALE established with 50:50 joint US$ billion 1993 ownership between Singapore Airlines and Boullioun Aviation Services Temasek and GIC each became 1997 14.5% shareholders 1997 >0.3 2000 >1 Bank of China acquired 100% of 2006 >3 2006 SALE on 15 Dec 200
Slide 23: BOC Aviation – Who Are We?
BOC Aviation – Who Are We? Top 5 global aircraft Total assets of 26th year of Industry leading operating US$19.8bn profitability performance lessor • The largest based • Aircraft net book • Consistently • Average ROE of in Asia, by value value of profitable since 15% since 2007 of owned fleet US$16.
Slide 24: Strong Financial Performance
Strong Financial Performance NPAT ROE (US$ Million) (%) 800 18 16.0 16.3 16.3 16.0 15.3 15.5 700 15.0 15.1 16 14.6 14.4 14.0 14.0 13.7 14 600 12 500 10 400 702 8 300 620 587 6 200 418 343 4 309 277 100 201 225 168 2 107 137 81 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NPAT
Slide 25: Experienced Global Management Team
Experienced Global Management Team Robert Martin Zhang Xiaolu Phang Thim Fatt Steven Townend David Walton Deng Lei Managing Director & Vice-Chairman & Deputy Managing Chief Commercial Chief Operating Chief Commercial Chief Executive Deputy Managing Director & Chief Officer (Europe, Officer Officer (
Slide 26: Core Competencies - BOC Aviation Track Record
Core Competencies - BOC Aviation Track Record Since inception in 1993: Purchasing More than 840 aircraft purchased totalling more than US$46 billion Leasing More than 950 leases executed with > 160 airlines in 57 countries and regions Financing Nearly US$29 billion in debt raised since 1 Janua
Slide 27: How We Invest
How We Invest Number of aircraft delivered, purchased and sold Global Opportunistic PLB European Financial acquisitions in the Crisis Crisis down cycle 41 19 24 13 16 (3) 9 14 45 27 16 7 4 6 22 18 17 14 31 21 5 58 61 6 5 44 48 50 (5) 12 41 27 31 17 22 22 7 14 (12) (12) (3) (10) (10) (6) (21) (28) (3
Slide 28: Leasing: Customer Segmentation
Leasing: Customer Segmentation • 775 airlines in service today • Focus on 138 airlines or only 18% of the airlines in the market – minimum credit score, above 20 aircraft Airline segmentation by credit score and fleet Our target 138 airlines operate 72% of the size current in-service aircraft 530, 2
Slide 29: 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 29