Avation Plc · LSE:AVAP
Avation — Corporate Update (July 2024)
21 slides from Avation's corporate update, July 2024
Slide 1: Corporate Update July 2024
Equity Ticker LSE: AVAP.L Warrants Ticker LSE:AVAW.L Bond Ticker LU: AVTCAP Corporate Update July 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$415M Average US$1.2B Unearned contracted Average Remaining Total asset value (1) Aircraft Age Lease Term lease receivables (2) 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 $22.96 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 avation PLC Loan Maturity 450 414 400 350 300 o 3 250 Loan Amount 200 150 100 79 67 74 50 v > . A 2 FY2024 FY 2025 FY 2026 FY2027 FY2028 FY 2029 FY 2030 FY2031 mSecured loans m=Warehouseloan Unsecured
Slide 9: Lease Expiry Profile
Lease Expiry Profile avation PLC Lease Expiry FY2024 = FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 Number of Aircraft B ° BATR 72-500 mATR 72-600 mA 320-200 mA 321-200 mA220-300 =A 330-300 =777-300ER
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 countries aircraft sold deliveries flights passengers From the world’s ‘angest citi ul > 's most remote regions, our purpose is to deliver air travel to people, Ince ities and busines: s in an innovative. sustginable
Slide 12: ATR Customer Base
ATR Customer Base avdtion PLC A diverse customer base... #Operators BS @ +200 orcrarors HAP 100 covrsnes Various operations: Regional Airlines, Network Carriers, LCC, ‘A320——-737NG Charters, Cargo, VIP, Special Mission AATFR family Family 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: First Commercial Aircraft Green Loan
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: Aircraft Values are Rising
Aircraft Values are Rising CMV for most single-aisle aircraft types is now higher than in 2019. Source : Cirium 17
Slide 18: Long Term Debt
Long Term Debt As at 31 December 2023, 96.2% of total debt was at fixed or hedged interest rates. 18
Slide 19: 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 20: Conclusion
Conclusion Leverage core competencies Organic growth with market recovery Harness ATR innovation - low CO2 emissions Refinance to improve shareholder returns 20
Slide 21: 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 [email protected] [email protected] Ashley Nicholas Tracy Wun Duncan Scott Director – Corporate Finance Director – Investor Relations G