Aircraft Leasing
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STATE TRANSPORT LEASING COMPANY FEBRUARY 2020 No1 No1 No1 No1 >17 IN OVERALL IN WATER IN RAILWAY IN AVIATION BN USD VOLUME TRANSPORT TRANSPORT TRANSPORT OF LEASING OF LEASING LEASING * LEASING * LEASING * PORTFOLIO PORTFOLIO * according to Expert RA research of the leasing market, 9М 2019 BRIEF HISTORICAL OVERVIEW 2009-2010 2011-2012 2013-2014 2015 2016 2017 2018 2019 • Establishing a • STLC is among TOP-5 • STLC entered the • STLC is the leader in the • STLC successfully • STLC is the largest • The investments of STLC • Increasing STLC's specialized leasing companies in the leasing Asian borrowed capital segments of air transport plased the debut issue leasing company in in Russia’s transport capital by USD 219.7 company on the basis market, taking the markets: in cooperation leasing segment and that of 5-year Eurobonds Russia in terms of the industry exceeded USD mln of budget funds of STLC, OJSC, in line leading positions in with ICBCL, it funded of operating leasing * for USD 500 million leasing portfolio and 12 billion on the implementation with the instructions of the transport leasing the delivery of five • The State made two among a wide range of new business volumes • Construction of of aircraft and water V.V. Putin for purchasing segments * Airbus A321 to Aeroflot contributions to the international investors • Attracting a syndicated the "Lavna" coal transport leasing domestic automotive • Implementing a non- • STLC is the largest AC STLC's authorized • Increasing STLC's credit line from transshipment facility programs, as well as and road construction commercial leasing supplier for regional capital for a total of USD capital by USD 200.3 Gazprombank, ICBC, has been launched digital assets leasing machinery program program through aviation and entered the 565.4 million million of budget funds RRDB, CBM, Banca • The volume of federal • The Ministry of reinvestment of lessees’ water transport leasing • Initiated activities as part of supporting the Intesa and Bank of China budget subsidies • STLC successfully Transport of the Russian funds market for the development leasing of Russian AC for the amount of up allocated to STLC in placed third and fourth Federation is authorized • Active development of • Launching a pilot of operating leasing of and development of to USD 696.2 million 2018 was equal to USD issues of Eurobonds for to exercise shareholder the railway equipment program for leasing SSJ100 ferry transport in the to fund the leasing of 334.4 million USD 1.05 bn rights Far East SSJ100** leasing motor vehicles running • Further development of • STLC leased more than • STLC’s credit ratings • Starting the • Developing the leasing on gas engine fuel the partnership with the • CMB Financial Leasing • Increasing STLC's 30% of the total amount from Moody’s, S&P implementation of the of regional aviation • Debut bond issue at the Chinese financial market Co provided a credit capital by USD 182.5 of innovative cars Global Ratings, and target leasing program facility to fund the million as part of Fitch Global Ratings • Assigning a long-term MICEX stock exchange – financed the delivery produced in Russia in with State participation (USD 323 million) of 3 Boeing 777-300ER supply of seven new implementing projects 2018 increased to Ba1, BB and ВВ- credit rating by S&P Airbus А320-214 aircraft to support the leasing BB+ respectively • Increasing the • At the end of 2013, units to Aeroflot • STLC began the Company’s capital by • At the end of 2012, to Aeroflot of domestic AC and • An Act of financial the total amount of STLC is among TOP-3 the development of the implementation of the air USD 161.5 million companies in terms of • Assigning long – term park monitoring system closure was signed as in order to support investments in non- international credit Vanino – Kholmsk ferry part of a concession commercial leasing the operating leasing crossing • Foreign platform for non- domestic producers volumes* ratings: Ba2 by Moody’s, project for the creation under the program of programs exceeded BB- by Fitch. The • Placing the second issue primary export has been and operation of anti-crisis measures of USD 323 million • ICBC opened a credit rating assigned by S&P of Eurobonds for the created - GTLK GLOBAL infrastructure facilities of the Government of the facility for USD 800 upgraded to BB- with a amount of USD 500 BUSINESS the seaport of Murmansk Russian Federation million for funding deals “stable” forecast million for 7 years • STLC was ranked in with aircraft • STLC’s leasing portfolio • Developing commercial • The Fitch rating TOP-10 of Russian bond exceeded USD 17 billion leasing programs using • Start of the increased to BB with a issuers according to implementation of Cbonds • STLC created a new borrowed funds of “positive” forecast; S&P direction of digital Russian banks the energy efficient and Moody`s increased transport leasing development and the long- term STLC launched an accelerator program with state co- rating forecast from financing for innovative projects in “stable” to “positive” the transport industry • At the end of the year, • Awarding the А+(RU) STLC is the leader in rating by the ACRA the segment of water agency transport leasing in terms of the new business volume* * According to Expert RA research of the leasing market ** Line initially opened by Gazprombank in December 2016; in March 2017, the creditors’ syndicate was joined by ICBC and RRDB, and in May 2017, Credit Bank of Moscow, Banca Intesa, and Bank of China 2 Presentation of STLC's key development indicators KEY DEVELOPMENT INDICATORS State Transport Leasing Company (STLC, the Company) The total amount of STLC's investment in the Russian STLC is a versatile leasing company, which has a is the largest leasing company in Russia transport sector in 2009–2019 was USD 15.7 billion; diversified and stable leasing portfolio the multiplier effect of budgetary investments, 1:8 The Russian Federation is the Company’s sole STLC's clients and partners are major Russian shareholder (represented by the Ministry of Transport of STLC’s total portfolio volume grew from USD 27 million enterprises, state companies, and financial institutions the Russian Federation) in 2009 to USD 17.8 billion as of 31.12.2019. The volume of new business for 2019 equals USD 3.5 STLC's credit rating is below Russia's sovereign credit STLC’s authorized capital has been created by the billion rating by one notch Government of the Russian Federation in the form of monetary contributions for the implementation of state programs to support the domestic transport sector in the amount of USD 1.7 billion 17,801 14,974 STATE INVESTMENT DYNAMICS OF STLC'S STLC'S LEASING PORTFOLIO STRUCTURE IN TERMS IN STLC'S HOLDING NEW BUSINESS AND OF THE INVESTMENT AMOUNT, COMPANY, USD million LEASING PORTFOLIO as of 31.12.2019* №1 8,642 IN TERMS OF THE PORTFOLIO SIZE 2009 161.5 Other 3% 2015 565.4 Motor transport, road Air transport 2016 200.3 construction transport 3% 37% 2017 182.5 5,508 2018 334.4 Water 100% 4,022 19% 3,541 transport IN THE FEDERAL OWNERSHIP 2019 219.7 3,515 2,562 2,536 2,157 2,174 39% Railway transport 1,464 921 934 STLC'S INVESTMENT IN 638 444 501 320 128 199 TRANSPORT SECTOR, 21 27 USD billion* STLC CREDIT RATING 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-2019 15.7 New business, USD million AKPA Leasing portfolio, USD million Bа1 BB+ BB А+(RU) * The investment amount under existing contracts reduced by the amount of compensation for contract value in received leasing payments 3 Presentation of STLC's key development indicators KEY FINANCIAL INDICATORS, IFRS As of September 30th 2019, STLC’s assets have increased by 21% and exceeded STLC meets key profitability targets set by the shareholder USD 10 billion (according to IFRS) STLC maintains a consistently high level of capital adequacy For the 9months of 2019, the Company's net profit amounted to USD 39.6 million Growth of equity capital significantly increases the borrowing potential of STLC and the Company's development opportunities 10.2 8.4 17% STLC'S ASSETS, USD billion* KEY PERFORMANCE INDICATORS (IFRS), USD million (9M 2019)* 20% 4% 3% 32% 5.5 34% 17% 4% REVENUE 686.2 3.7 PROFIT FOR THE PERIOD 3.0 39% 39.6 27% 21% 4% ROE 11% 3.4% 1.6 38% CAPITAL ADEQUACY 10% 45% 3% (CAPITAL/ASSETS) 14% 30% 57% 23% 31% 40% 43% 47% 2014 2015 2016 2017 2018 9М 2019 Net investment in leases Cash and cash equivalents * According to the exchange rate of the ruble 1 USD= 61.9057 RUB Assets under operating lease Other assets 4 Presentation of STLC's key development indicators LEADING MARKET POSITIONS STLC is the largest leasing company in Russia in terms TOP-10 RUSSIAN LEASING COMPANIES TOP-10 RUSSIAN LEASING COMPANIES IN TERMS of the leasing portfolio volume (market share – 22%) IN TERMS OF THEIR LEASING PORTFOLIO OF THE NEW BUSINESS SIZE AMOUNT (as of 31.12.2019), USD billion* (as of 31.12.2019), USD billion* STLC is the leader in terms of portfolio volume in the segments of aircraft, railway and water transport STLC 17.7 Sberbank Leasing 3.4 Sberbank Leasing 12.5 STLC 3.3 STLC is the leading company in Russia in terms of VTB Leasing 9.4 VTB Leasing 2.2 bonds placed at the financial market VEB-leasing 6.7 VEB-leasing 1.5 Gazprombank Leasing 3.9 Europlan 1.4 Alfa Leasing 2.5 Alfa Leasing 1.0 Europlan 1.7 Gazprombank Leasing 1.0 RESO-Leasing 1.2 Baltic Leasing 0.9 Siemens Finance 1.1 RESO-Leasing 0.8 Baltic Leasing 1.0 Siemens Finance 0.7 STLC IN LEASING SEGMENTS IN TERMS OF THE LEASING PORTFOLIO VOLUME ** AIR TRANSPORT RAILWAY