Avation Plc · LSE:AVAP
Avation — Investor Presentation (May 2023)
22 slides from Avation's investor presentation, May 2023
Slide 1: Corporate Update May 2023
Equity Ticker LSE: AVAP Warrants Ticker LSE:AVAW Bond Ticker LU: AVTCAP Corporate Update May 2023
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 of Avation
Snapshot of Avation Diversified Fleet and Customer Base 18%/51%/31% Customers 36 17 Airline split of located in 14 Widebody/narrowbody Aircraft Customers Countries /turboprop aircraft by value 6.2 Years 5.3 Years US$907Mn US$514Mn Weighted Average Total asset value (1) Unearned contracted Weighted A
Slide 4: Aircraft Portfolio
Aircraft Portfolio Balanced Fleet with valuable orderbook and Purchase Rights that By Value create significant opportunity Purchase Aircraft Type Fleet Orders Rights Turboprop Aircraft Turboprop ATR 72-600 16 2 28 31% Widebody ATR 72-500 5 - - 18% Narrowbody Aircraft A321-200 6 - - A320-200 2 - - A2
Slide 5: Avation PLC – Core Competencies
Avation PLC – Core Competencies Since inception in 2006 • Purchasing : Total 73 Aircraft purchased with US$1.9 billion invested • Leasing : Executed 80 Leases with 30 Airlines crossing 20 Countries • Financing : US$1.9 billion debt raised • Sales : 37 aircraft sold • Transitions : 13 aircraft transi
Slide 6: Avation PLC – Core Competencies
Avation PLC – Core Competencies Outcome • Total number of aircraft delivered 69 • Proportion of aircraft traded 54% • Net Asset Value per share FY2007 was US$0.42 to HY2023 was US$3.42 • Total Dividends $0.43 • 31 Mar ’23 - Rent Arrears 22% turboprop, 78% narrowbody and 0% widebody 6
Slide 7: Avation PLC – Net Asset Value per share
Avation PLC – Net Asset Value per share 4.00 3.50 3.00 2.50 USD 2.00 1.50 1.00 0.50 - FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 HY2023 Avation PLC’s NAV per share CAGR is 13.8% p.a. 7
Slide 8: Airline Customers
Airline Customers 17 Airline Customers in 14 Countries Airline Aircraft Number Vietjet A321-200 6 Air Baltic A220-300 5 Hevilift 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 EVA Air A330-300 1 Philippine
Slide 9: Market Recovery
Market Recovery Global capacity expected to be within 1% of 2019 volume globally by the end of September 2023 Source: Cirium 9
Slide 10: Market Growth
Market Growth Recovering steadily and above pre-Covid levels in Europe, North America Source: ATR, OAG at 20 Apr 2023 10
Slide 11: ATR – Program
ATR — Program tion PLC A Successful Program +200 100 1,800 1,600 36M +1B operators countries aircraft sold deliveries flights passengers 11
Slide 12: ATR – Customer Base
avation PLC ATR — Customer Base A diverse customer base... HOperators BS @ +200 overarors HAP 100 coors Various operations: Regional Airlines, Network Carriers, LCC, Charters, Cargo, VIP, Special Mission 12
Slide 13: ATR – Replacement Opportunity
ATR – Replacement Opportunity 13
Slide 14: ATR – 100% SAF certified by 2025
ATR – 100% SAF certified by 2025 Lowering CO2 emissions meets upcoming ESG requirements 14
Slide 15: Green Finance Award
Green Finance Award Avation first lessor commercial aircraft Green Loan 15
Slide 16: Orderbook and Purchase Rights
Orderbook and Purchase Rights Firm Aircraft Orderbook • Two ATR72-600 with 2024 delivery (PDP’s paid) • With low CO2 PW 127XT-M engines • IBA Dec 2022 Market Value is $21.34 million per aircraft Purchase rights • 28 ATR72-600 aircraft with PW 127XT-M engines • Purchase rights run to June 2027 16
Slide 17: Aircraft Values Rising
Aircraft Values Rising Narrowbody base value recovered, widebody values improving Source: Cirium In times of inflation, aircraft values rise 17
Slide 18: Long Term Debt
Long Term Debt 5-10 year base rates support longer lease terms our leases are 100% hedged 18
Slide 19: Debt Finance Comparisons
Debt Finance Comparisons Lessor Last bond Recent bond Issue date Tenor Issue Yield % Air Lease Mar-23 5yr 6.10 Aviation Capital Group Apr-23 5yr 6.44 TrueNord Apr-23 5yr 8.15 Macquarie AirFinance Apr-23 5yr 8.38 SMBC May-23 5yr 5.49 Avolon May-23 5yr 6.62 Sources: BBG, AirFinance Journal Senior debt
Slide 20: FY2023 Focus
FY2023 Focus • At 100% fleet utilisation • ATR turboprops have lower rent arrears compared to narrowbodies. • ATR turboprops at the forefront of reducing CO2 emissions • Interest rates hedging is effective 20
Slide 21: Conclusion
Conclusion Leverage core competencies Organic growth with market recovery Harness ATR innovation - low CO2 emissions Inflation upward pressure on aircraft values De-risk rising rates – 100% hedging 21
Slide 22: Questions & Answers
Questions & Answers Avation PLC 65 Kampong Bahru Road Singapore 169370 Phone: + 65 6252 2077 www.avation.net Jeff Chatfield Iain Cawte Ashley Nicholas Duncan Scott Executive Chairman Chief Financial Officer Corporate Finance Director Group General Counsel [email protected] [email protected] ashley@ava