Slide 1: 2023 Interim Results Review
2023 INTERIM RESULTS REVIEW AUGUST 2023
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: 1H 2023 Overview
1H 2023 OVERVIEW © BOc AVIATION
Slide 4: A Strong 1H 2023
A Strong 1H 2023 1H 2023 Core 1H 20221 Statutory 1H 20223 Key Indicators US$ million US$ million Variance2 US$ million Total revenues and other income 1,061 973 9% 1,196 Profit/(Loss) before tax 295 234 26% (347) Net profit/(loss) after tax 262 206 27% (313) Earnings/(Loss) per share (US$)4 0.38 0.3
Slide 5: Interim Dividend Per Share Increased 27%
Interim Dividend Per Share Increased 27% Key Indicators 1H 2023 1H 2022 Variance Total interim dividends US$78 million US$62 million 27% Interim dividend payout ratio 30% of NPAT 30% of NPAT1 In line Interim dividend per share US$0.11312 US$0.0889 27% Cumulative dividends of US$1.4 billion paid sinc
Slide 6: Robust Balance Sheet and Liquidity
Robust Balance Sheet and Liquidity Key Indicators 30 June 2023 31 December 2022 Variance Total assets (US$ billion) 22.9 22.1 4% Total available liquidity (US$ billion) 5.7 5.3 8% Total equity (US$ billion) 5.4 5.2 3% Net assets per share (US$) 7.72 7.50 3% Gross debt to equity (times) 3.0 2.9 0.1x
Slide 7: Key 1H 2023 Highlights
Key 1H 2023 Highlights Robust 1H 2023 earnings Strong asset quality NPAT of US$262 million in 1H 2023; Average fleet age of 4.7 years3; Cumulative earnings of more than US$5.7 billion1 Average lease term remaining of 8.0 years3 Record high lease rental income High level of liquidity 1H 2023 lease re
Slide 8: Returning to Growth
Returning to Growth Core revenues1 Core profit before tax1 US$ million US$ million 295 1,061 973 234 1H 2022 1H 2023 1H 2022 1H 2023 Core operating cash flow net of interest1,2 Core net profit after tax1 US$ million 721 US$ million 262 623 206 1H 2022 1H 2023 1H 2022 1H 2023 Significant improvement
Slide 9: How We Invest
How We Invest Number of aircraft delivered, purchased and sold Global European Russia- Opportunistic PLB Financial Covid-19 Ukraine Crisis acquisitions in the Crisis conflict down cycle 41 19 24 (3) 9 13 16 14 41 22 45 27 16 6 7 4 22 17 12 14 31 18 21 43 29 5 58 61 12 6 5 41 44 48 50 17 12 (5) 27 31
Slide 10: Growing Balance Sheet and Fleet
Growing Balance Sheet and Fleet Owned fleet exceeded 400 aircraft Number of owned aircraft1 392 404 380 358 317 2019 2020 2021 2022 1H 2023 Returning to asset growth Total assets (US$ billion) 23.6 23.9 22.1 22.9 19.8 2019 2020 2021 2022 1H 2023 Continued aircraft investment supported by rising airc
Slide 11: 100% of Orderbook Comprises Latest Technology Aircraft
100% of Orderbook Comprises Latest Technology Aircraft Our aircraft portfolio Aircraft type Owned aircraft Managed aircraft Aircraft on order1 Total Airbus A220 family 5 0 0 5 Airbus A320CEO family 95 15 0 110 Airbus A320NEO family 94 0 120 214 Airbus A330CEO family 8 1 0 9 Airbus A330NEO family 6 0
Slide 12: Lease Rental Income Continues to Drive Revenue
Lease Rental Income Continues to Drive Revenue Lease rental income drives total revenues and other income Net gain on sale of aircraft US$ million 1,061 973 1% 107 14 83 13 Interest, fee income and others 10% 877 940 1H 2022 1H 2023 Lease rental income Lease rental income Net gain on sale of aircraf
Slide 13: Long-Term Leases Enhance Revenue Visibility
Long-Term Leases Enhance Revenue Visibility A long average remaining lease term1 Well-dispersed scheduled lease expiries2 Number of years 300 81.1% 100% Average remaining lease term of 8.0 years 80% 8.3 8.1 8.0 200 60% 100 40% 3.0% 2.7% 3.8% 2.3% 5.5% 20% 0 0% 2024 2025 2026 2027 2028 2029 and beyon
Slide 14: Lease Rate Factor Trending Higher in 2023
Lease Rate Factor Trending Higher in 2023 Lease rate factor1 Net lease yield3 9.5% 9.8% 8.9% 6.8% 7.0% 7.0% +60bps +30bps +20bps Stable 1H 2022 2H 2022 1H 2023 Cost of debt2 3.9% 3.3% 2.9% +40bps +60bps 1H 2022 2H 2022 1H 2023 1H 2022 2H 2022 1H 2023 Notes: 1. Calculated as contractual operating lea
Slide 15: Globally Diversified Portfolio
Globally Diversified Portfolio Lease portfolio diversified by customer1,2 …and increasingly diversified by geography3,4 American Airlines Middle East and Africa Chinese Mainland, 9.2% 11.4% Hong Kong SAR, Qatar Airways Macau SAR and 8.5% Taiwan Europe 25.1% Lion Air Group 18.8% 4.7% Air China Asia P
Slide 16: Record High Operating Cash Flow Net of Interest
Record High Operating Cash Flow Net of Interest Net cash flow from operating activities Collection rate in excess of 100% US$ million 101.8% 1,024 95.9% 96.9% 797 852 1 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 1H 2023 operating cash flow net of interest2 Improving operating cash flow net of i
Slide 17: Diverse Funding Channels Utilised in 1H 2023
Diverse Funding Channels Utilised in 1H 2023 Sources and Uses of Cash US$ million 5,749 Sources Uses Undrawn 625 108 (1,217) 5,210 committed credit 1,000 facilities (550) 721 (167) (245) (123) (5) Cash & 392 539 cash Cash and Operating 1 Bond Bank loans Asset sales Capex Bond Loan RCF Dividends Othe
Slide 18: Stable Debt Structure
Stable Debt Structure US$ billion Loans 0.6 Loans (0.2) (0.2) Bonds (0.6) Bonds 1.0 Debt 15.2 15.9 outstanding 14.2bn since 1 Jan 2023 Indebtedness as at 1 Repayment Net RCF repayment New debt Indebtedness as at 30 January 2023 June 2023 More than 90% of debt unchanged with debt to equity of 3.0:1 a
Slide 19: Flexible Capital Structure
Flexible Capital Structure Outstanding debt amortises over a long term Sources of debt1 US$ billion 14.4 Loans Loans 11.3 34% 34% 7.8 5.9 3.4 Bonds Bonds 2.0 66% 66% 2H 2023 2024 2025 2026 2027 2028 and 2022 1H 2023 Loans Bonds beyond Outstanding debt maturity profile Asset and liability profile Flo
Slide 20: Record High Committed Capex
Record High Committed Capex Orderbook by direct orders vs PLBs1,2 Total committed capex of US$11 billion4 US$ billion Number of aircraft 8.2 149 4.0 149 3 41 39 1.8 17 7 1.0 24 32 1.2 2023 2024 2025 and beyond 2023 2024 2025 and beyond Orderbook PLBs Capex during 1H 2023 Committed2H Committed capex
Slide 21: Conclusion
Conclusion • On track for 30th year of unbroken profitability • More than US$5.7 billion of cumulative earnings1 • A very active first half of the year • Net profit after tax (NPAT) rose 27%2 to US$262 million • Record high lease rental income of US$940 million • Record high operating cash flow net
Slide 22: Appendices
APPENDICES © BOc AVIATION
Slide 23: Major Passenger Markets Have Broadly Regained Pre-Covid Levels
Major Passenger Markets Have Broadly Regained Pre-Covid Levels 20% 0% Air traffic equivalent (Changes vs 2019) -20% -40% -60% -80% China US Europe India -100% Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Mar-22 Jul-22 Nov-22 Mar-23 Jul-23 Airline industry profits expectation is lifted to US$9.8 billion
Slide 24: Rising Aircraft Values Reflect Recovery in the Aviation Industry
Rising Aircraft Values Reflect Recovery in the Aviation Industry Rising aircraft market values1 Committed future revenues of around US$17 billion2,3 Post-covid single-aisle US$ billion 1.2 market recovery Fleet-Weighted Average CMV / BV Ratio 1.1 2.4 Future deliveries 1.0 16.6 0.9 14.2 Owned portfol
Slide 25: Airlines’ Capital Investments Are Projected to Exceed US$125 Billion by 2025
Airlines’ Capital Investments Are Projected to Exceed US$125 Billion by 2025 US$ billion 150 100 50 0 Narrowbody Widebody Value of deliveries expected to rise in the next four years All data as at 30 June 2023 Source: BOC Aviation Analysis 25
Slide 26: Operating Lessors’ Share of the Market
Operating Lessors’ Share of the Market Proportion of fleet on operating lease 53% Proportion of fleet on operating lease (%) 25,000 55% 50% 50% 20,000 Number of aircraft 45% 15,000 40% 10,000 35% 30% 5,000 23% 25% 0 20% 1990 1995 2000 2005 2010 2015 2020 Jun-2023 Airline owned fleet Operating lease
Slide 27: The BOC Aviation Journey – 30 Years in 2023
The BOC Aviation Journey – 30 Years in 2023 Ownership Total assets 1993 SALE established with 50:50 joint ownership between Singapore Airlines and Boullioun US$ billion Aviation Services Temasek and GIC each became 14.5% 1997 >0.3 1997 shareholders 2000 >1 Bank of China acquired 100% of SALE on 15 D
Slide 28: BOC Aviation – Who are We?
BOC Aviation – Who are We? Top 5 Bank of China Global aircraft operating lessor1 70% owned by BOC Listed on HKEX A- Investment grade credit ratings from S&P and Fitch HKEX code: 2588 >US$5.7 billion US$22.9 billion Cumulative profits since inception Total assets >US$5.7 billion 652 Available liquidi
Slide 29: Our Management Team
Our Management Team Robert Martin Zhang Xiaolu Steven Townend Tom Chandler Deng Lei Paul Kent Managing Director & Vice-Chairman & Deputy Managing Chief Operating Chief Commercial Chief Commercial Chief Executive Deputy Managing Director & Chief Officer Officer (Asia Pacific & Officer (Europe, Office
Slide 30: Core Competencies - BOC Aviation Track Record
Core Competencies - BOC Aviation Track Record Since inception in 1993: •• Purchasing Purchasing More than 1,000 aircraft purchased totalling around US$60 billion •• Leasing Leasing More than 1,250 leases executed with >190 airlines in > 60 countries and regions •• Financing 1 1 Financing More than U
Slide 31: www.bocaviation.com
www.bocaviation.com BOC Aviation Limited 79 Robinson Road #15-01 Singapore 068897 Phone +65 6323 5559 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K