Avation Plc · LSE:AVAP
Avation — Investor Presentation (June 2024)
22 slides from Avation's investor presentation, June 2024
Slide 1: Corporate Update June 2024
Equity Ticker LSE: AVAP.L Warrants Ticker LSE:AVAW.L Bond Ticker LU: AVTCAP Corporate Update June 2024
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: Snapshot
Snapshot 18%/52%/30% 34 16 Airline Customers in split Aircraft Customers 14 Countries Widebody/Narrowbody /Turboprop by value 7.2 Years 4.3 Years US$430M US$1.2B Unearned contracted Average Average Remaining Total asset value (1) lease receivables (2) Aircraft Age Lease Term 1.As at 31 December 2023
Slide 4: Portfolio
Portfolio Balanced fleet with Orderbook and Purchase Rights Aircraft Type By Net Book Value Purchase Aircraft Type Fleet Orders Rights Turboprop Aircraft Turboprop 30% ATR 72-600 15 12 24 Widebody 18% ATR 72-500 4 - - Narrowbody Aircraft A321-200 6 - - A320-200 2 - - A220-300 5 - - Widebody Aircraft
Slide 5: Orderbook and Purchase Rights
Orderbook and Purchase Rights Firm Aircraft Orderbook • 12 ATR72-600 order with low CO2 PW 127XT-M engines. • Ascend Market Value $22.5 million per aircraft. • 10 ATR 72 aircraft for delivery between Q4 2025 and Q1 2028. All aircraft are expected to be 100% SAF compatible. • Out of 12 Orders of ATR
Slide 6: Core Competencies
Core Competencies Since inception in 2006 • Purchasing Total 73 aircraft purchased with US$1.9B invested • Leasing Executed 81 Leases with 31 Airlines in 21 Countries • Financing US$1.9B debt raised • Sales 39 aircraft sold • Transitions 14 aircraft transitioned • Repossessions 19 aircraft in 6 coun
Slide 7: Customers
Customers 16 Airlines in 14 Countries Airline Aircraft Number Vietjet A321-200 6 Air Baltic A220-300 5 Aerlink ATR 72-500 3 Mandarin ATR 72-600 3 Alliance Air ATR 72-600 2 Braathens ATR 72-600 2 Danish Air Transport ATR 72-600 2 US Bangla ATR 72-600 2 Cebu Pacific ATR72-600 1 Cebu Pacific A320-200 1
Slide 8: Loan Maturity Profile
Loan Maturity Profile Loan Maturity 450 413 400 350 Loan Amount 300 $m 250 332 200 150 100 79 66 73 9- - 46 8- 36 50 2- 28 73 21 24 58 70 44 45 - - - 28 21 24 - FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Secured loans Warehouse loan Unsecured 8
Slide 9: Lease Expiry Profile
Lease Expiry Profile Lease Expiry 7 6 Number of Aircraft 1 5 1 1 4 4 1 3 3 3 2 4 3 3 1 1 1 1 2 2 1 1 1 0 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 ATR 72-500 ATR 72-600 A 320-200 A 321-200 A220-300 A 330-300 777-300ER 9
Slide 10: Upward Trend In Market Lease Rates
Upward Trend In Market Lease Rates Market Lease Rates have increased significantly over last two years due to supply chain issues; some are now above pre-COVID levels. Source : Cirium 10
Slide 11: ATR Program
ATR Program avation PLC A Successful Program +200 100 1,800 1,600 36M +1B operators connie aircraft sold deliveries flights passengers t remote regions, Dur purpose | ist to deliver air innovative. sust linable : and | modern way.
Slide 12: ATR Customer Base
avation PLC ATR Customer Base A diverse customer base... HOperators B+ @ +200 orcrarors PAR 100 cousins Various operations: Regional Airlines, Network Carriers, LCC, Charters, Cargo, VIP, Special Mission 12
Slide 13: ATR Replacement Opportunity
ATR Replacement Opportunity over retirement age 13
Slide 14: ATR 100% SAF by Year 2025
ATR 100% SAF by Year 2025 Note: SAF : refers to Sustainable Aviation Fuel, an alternative fuel (renewable or waste derived) made from non-petroleum feedstocks that reduces emissions from air transportation. This bio-fuel is expected to reduce aviation emissions by up to 80% when compared with fossil
Slide 15: Green Finance Award
Green Finance Award Avation - First Commercial Aircraft Green Loan 15
Slide 16: Aircraft Values Rising
Aircraft Values Rising Single-aisle CMV/BV ratio now at 121% - higher than March 2020 which was 115%; twin-aisle ratio at 114% of BV after several upward CMV revisions. Source : Cirium Note: CMV : refers to Current Market Value BV : refers to Base Value 16
Slide 17: Narrowbody Aircraft Values
Narrowbody Aircraft Values CMV for most single-aisle aircraft types is now higher than in 2019. Source : Cirium 17
Slide 18: Widebody Aircraft Valuation is Rising
Widebody Aircraft Valuation is Rising • Widebody aircraft such as our B777-300ER are also rising in value. 18
Slide 19: Long Term Debt
Long Term Debt As at 31 December 2023, 96.2% of total debt was at fixed or hedged interest rates. 19
Slide 20: FY2024 Focus
FY2024 Focus • Continually reducing debt servicing obligations so as to improve cashflow position of the Company • Organic ATR growth and additional narrowbody aircraft to the fleet • Market ATR turboprops to airlines which are at the forefront of reducing CO2 emissions • Buyback shares and reduce o
Slide 21: Conclusion
Conclusion Leverage core competencies Organic growth with market recovery Harness ATR innovation - low CO2 emissions Refinance to improve shareholder returns 21
Slide 22: Avation PLC Contacts
Contacts Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Iain Cawte Executive Chairman Chief Financial Officer jeff@avation.net iain@avation.net Ashley Nicholas Tracy Wun Duncan Scott Director – Corporate Finance Director – Investor Relations G