Boc Aviation Limited · HKEX:2588
Boc Aviation — H1 2026 Earnings Presentation
35 slides from Boc Aviation's earnings presentation, Aug 20, 2026
Slide 1: 2026 Interim Results Review
2026 INTERIM RESULTS REVIEW AUGUST/SEPTEMBER 2026
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 2026 Overview
1H 2026 OVERVIEW © BOc AVIATION
Slide 4: Record underlying interim earnings
Record underlying interim earnings Key indicators 1H 2026 1H 2025 Change US$ million US$ million Total revenues and other 1,297 1,242 4% income Core lease rental contribution1 388 342 13% Profit before tax 431 406 6% Net profit after tax 357 342 4% Solid performance reflecting growth in all business
Slide 5: Total assets reached a new milestone as we added to our fleet
Total assets reached a new milestone as we added to our fleet Key indicators 30 Jun 2026 31 Dec 2025 Change Total assets (US$ billion) 27.8 26.3 6% Net assets per share (US$) 10.13 9.86 3% Total equity (US$ billion) 7.0 6.8 3% Total liquidity (US$ billion) 6.3 6.9 9% Gross debt-to-equity 2.6 2.5 0.1
Slide 6: Second highest interim dividend on record
Second highest interim dividend on record US$/share +195% 0.1988 0.1799 0.1476 0.1388 0.1398 0.1284 0.1098 0.1131 0.1038 0.0889 0.061 1H 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2026 Interim DPS up 22% as we lifted our payout ratio to 35% 6
Slide 7: 1H 2026 highlights
1H 2026 highlights 01 02 03 04 05 US$357 US$3.3 100% Nil US$18 million billion Fleet utilisation Aircraft impairment billion Record Aircraft Maintained Strong Strong future underlying value from asset committed NPAT premium1 2025 quality capex A strong first half against a challenging geopolitical b
Slide 8: Solid underlying fundamentals
Solid underlying fundamentals Revenues1 Profit before tax1 US$ million US$ million 406 431 1,157 1,242 1,297 323 1H 2024 1H 2025 1H 2026 1H 2024 1H 2025 1H 2026 Core lease rental contribution2 Net profit after tax1 US$ million US$ million 342 357 388 342 284 276 1H 2024 1H 2025 1H 2026 1H 2024 1H 20
Slide 9: How we invest
How we invest Operational and financial flexibility drives aircraft investment across multiple cycles Global European Opportunistic PLB Financial Crisis Covid-19 acquisitions in the Crisis down cycle 120 140 Estimated value of industry aircraft Number of aircraft delivered1 100 120 deliveries (US$ b
Slide 10: How we divest
How we divest Aircraft sales strategy keeps fleet young Global European Financial Covid-19 Crisis Crisis 43 3 37 34 35 33 Number of aircraft sold 11 30 2 29 4 6 28 2 23 21 20 2 40 17 32 6 31 12 12 6 10 10 27 26 27 1 8 5 2 6 19 11 11 14 3 8 2 8 7 4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 11: Total portfolio of more than 810 aircraft and engines
Total portfolio of more than 810 aircraft and engines Our portfolio Asset Type Owned Managed On Order1 Total Airbus A220 family 23 0 0 23 Airbus A320CEO family 53 3 0 56 Airbus A320NEO family 166 0 198 364 Airbus A330CEO family 8 0 0 8 Airbus A330NEO family 6 0 0 6 Airbus A350 family 15 0 2 17 Boein
Slide 12: Lease rental income drives revenue
Lease rental income drives revenue Lease rental income drives total revenues and other income US$ million Net gain on sale of aircraft 1,242 1,297 5% 244 240 60 69 Interest, fee income and 937 988 others 19% Total revenues 1H 2025 1H 2026 Lease rental income Net gain on sale of aircraft Interest, fe
Slide 13: Gains on aircraft sales reflect portfolio quality
Gains on aircraft sales reflect portfolio quality Average appraised values > aircraft NBV Gains on aircraft sales margin 17% 32% 15% 14% 14% 9% Long run avg Average June 2024 Jan-24 June 2025 Jan-25 June 2026 Jan-26 1H 2024 1H 2025 1H 2026 age of aircraft 9+ 10+ 9+ sold (years)1 Active aircraft sale
Slide 14: Long-term leases a key feature of the Company
Long-term leases a key feature of the Company A long average remaining lease term1 Well-dispersed scheduled lease expiries2 Number of years 74.4% 400 80% 7.9 7.8 7.7 300 60% Avg aircraft remaining lease term of 7.7Y 200 40% 100 9.7% 20% 0.7% 3.1% 5.8% 6.3% 0 0% 2027 2028 2029 2030 2031 2032 and beyo
Slide 15: Continued improvement in lease yields
Continued improvement in lease yields Operating lease rate factor1 Net operating lease yield3 +40bps +40bps 10.0% 10.3% 10.4% 7.5% 7.6% 7.2% 2024 2025 1H 2026 Cost of debt2 -10bps 4.5% 4.5% 4.4% 2024 2025 1H 2026 2024 2025 1H 2026 Notes: 1. Calculated as operating lease rental income divided by aver
Slide 16: A new milestone in core lease rental contributions
A new milestone in core lease rental contributions Core leasing activities drive earnings growth Core lease rental contribution (US$ million)1 388 8% p.a. 342 280 279 276 1H 2022 1H 2023 1H 2024 1H 2025 1H 2026 Highest interim core lease rental contribution in the Company’s history Note: 1. Calculat
Slide 17: Global lessor with a highly diversified portfolio
Global lessor with a highly diversified portfolio Lease portfolio diversified by customer1 …and diversified by geography1 American Airlines 13.1% Europe 13.7% Americas Qatar Airways 39.1% 7.7% Middle East and Africa JetBlue 13.8% Others 5.7% 65.7% Asia Pacific IndiGo Chinese Mainland, (excluding Chi
Slide 18: Strong cash flow generation
Strong cash flow generation Net cash flow from operating activities 1H 2026 operating cash flow net of interest US$ million US$ million 1,290 1,394 1,221 1,221 (376) 1H 2024 1H 2025 1H 2026 844 Collection rate remained strong 102.0% 100.7% 99.2% Net cash flow from Finance expenses Operating cash 1H
Slide 19: Diverse funding channels utilised in 1H 2026
Diverse funding channels utilised in 1H 2026 Sources and Uses of Cash US$ million Sources Uses 258 100 (2,267) 6,284 793 2,100 Undrawn committed (1,307) 5,965 credit facilities 844 (398) 400 (204) Cash & cash 319 equivalents Cash and Operating 1 Bank loans Bond Asset sales RCF Capex Bond Loan Divide
Slide 20: Flexible capital structure
Flexible capital structure Sources of debt Asset and liability profile Loans Loans 53% 59% Floating rate 11% Floating rate Bonds Bonds 21% 47% 41% 2025 1H 2026 Fixed rate Outstanding debt maturity profile Fixed rate 45% 87% US$ billion 4.3 Others 3.3 3.3 3.6 9% 2.3 1.5 Equity 0.2 Others 25% 2% 2H 20
Slide 21: High future committed capex of US$18 billion
High future committed capex of US$18 billion Orderbook delivery schedule1 Total future committed capex of US$18 billion Number of aircraft 206 US$ billion 49 52 11.4 8 39 2 15 7 206 50 26 2 2 32 2026 2027 2028 2029 and beyond Purchase and leaseback Orderbook Delivered Strong capex drives orderbook a
Slide 22: Conclusion
Conclusion US$357m US$0.1799 US$388m US$3.3b US$18b 17% premium to 320 aircraft Customer on and Market +4% 35% of NPAT +13% NBV order Focus Record Higher Record core Aircraft Strong underlying dividend lease rental value future NPAT payout contribution premium1 committed capex Laying the foundation
Slide 23: Appendices
APPENDICES © BOc AVIATION
Slide 24: The BOC Aviation journey – 33 years in 2026
The BOC Aviation journey – 33 years in 2026 Ownership Total assets 1993 SALE established with 50:50 joint ownership US$ billion between Singapore Airlines and Boullioun Aviation Services 1997 Temasek and GIC each became 14.5% 1997 >0.3 shareholders 2000 >1 2006 Bank of China acquired 100% of SALE on
Slide 25: About us
About us Bank of China Listed on HKEX Ownership 70% owned by BOC (2588 HK) Top 5 88 customers in 45 countries Market position Global aircraft operating lessor1 and regions Into our 33rd year >US$8.3 billion Profit track record Of unbroken profitability Cumulative profits since inception US$27.8 bill
Slide 26: Our management team
Our management team Steven Townend Wen Lan Tom Chandler Paul Kent Max Qian Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Commercial Chief Commercial & Managing Director Officer Officer (Asia Pacific & the Middle East) • 35 years of banking • 27 years of banking • 29 y
Slide 27: Core competencies - BOC Aviation track record
Core competencies - BOC Aviation track record Since inception in 1993: •• Purchasing Purchasing More than 1,300 aircraft purchased totalling more than US$77 billion •• Leasing Leasing More than 1,500 leases executed with > 200 airlines in > 60 countries and regions •• Financing Financing 1 More than
Slide 28: Delivery value to exceed 2018 levels in 2026 for first time
Delivery value to exceed 2018 levels in 2026 for first time Total aircraft deliveries All aircraft1,2 Narrowbody Widebody 2,500 2,217 2,118 2,006 2,000 1,886 1,553 1,620 1,500 1,452 1,409 1,155 1,200 1,129 1,080 1,000 858 1,870 1,707 1,810 650 1,594 1,232 1,345 1,103 1,037 1,185 500 963 991 812 775
Slide 29: Growing lessors' share of the market
Growing lessors’ share of the market Proportion of fleet on operating lease 25% 29% 42% 48% 49% 1990 2000 2010 2020 June 2026 Lessors own around 50% of the aircraft market today Source: Ascend, BOC Aviation’s analysis as at 30 June 2026 based on aircraft of 100 seats. Fleet data in 2020 included air
Slide 30: Lease yields at highest levels since 2019
Lease yields at highest levels since 2019 Covid-19 (%) 10.8 10.7 10.3 10.5 10.3 10.4 10.0 10.0 10.0 Lease rate factor 1 9.7 9.2 8.5 8.6 8.4 8.3 7.9 7.6 7.5 7.6 2 7.0 7.1 7.2 Net lease yield 4.0 4.2 4.1 4.1 Average 7Y UST Bills 2.8 3.0 2.2 2.0 1.6 1.2 0.7 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 31: Record aircraft valuations – and rising
Record aircraft valuations – and rising MV/BV Ratios Market value/base value ratio Current MV/BV Ratios by age Current market value/base value Widebody Narrowbody 1.4 NB WB 1.3 0-5yr 1.04 1.00 1.2 5-10yr 1.16 1.04 1.1 10-15yr 1.32 1.26 1.0 1 0.9 15-20yr 1.58 1.56 0.8 20-25yr 1.72 1.67 0.7 25-30yr 1.
Slide 32: Jet fuel crack spreads remain at elevated levels
Jet fuel crack spreads remain at elevated levels Jet fuel, Brent crude and crack spread, 2016–present $/barrel Avg. Feb1 Avg. July1 Avg.YTD1 $240 Jet fuel (SG) $89 $139 $142 Brent crude $71 $83 $91 $220 Crack $18 $56 $51 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2016 2017 2018 2019 2020 2021
Slide 33: Airline industry profits - 2026 expectations cut 44%
Airline industry profits - 2026 expectations cut 44% IATA global airline industry net post-tax profit Estimated / Forecast by IATA Economics, US$ billion Africa Asia Pacific Europe Latin America Middle East North America 60 45 41 38 40 23 20 37 35 35 27 26 18 17 11 6 0 4 -138 -40 -3 -140 2010 2012 2
Slide 34: Sustained airfare strength largely offsets jet fuel price increases
Sustained airfare strength largely offsets jet fuel price increases Airlines must pass through higher jet fuel costs to passengers to remain profitable - IATA forecast has c.15% increase in ticket prices Average 2026 full year jet fuel price and % of jet fuel cost increase passed to passengers1 sens
Slide 35: 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