Boc Aviation Investor Update
Total Page：16
File Type：pdf, Size：1020Kb
BOC AVIATION INVESTOR UPDATE January 2019 Shenzhen / Hong Kong Disclaimer This presentation contains general background information about the activities of BOC Aviation Limited (“BOC Aviation”), current as at the date hereof. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of BOC Aviation or any of its subsidiaries or affiliates in any jurisdiction or an inducement to enter into investment activity. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the information or opinions contained herein. The information set out herein may be subject to revision and may change materially. BOC Aviation is not under any obligation to keep current the information contained in this document and any opinions expressed in it are subject to change without notice. None of BOC Aviation or any of its affiliates, advisers or representatives (including directors, officers and employees) shall have any liability whatsoever for any loss whatsoever arising from any use of this document or its contents or otherwise arising in connection with this document (whether direct, indirect, consequential or other). No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of BOC Aviation or any of its affiliates, advisors, agents or representatives including directors, officers and employees shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. This document is highly confidential and is being given solely for your information and for your use and may not be shared, copied, reproduced or redistributed to any other person in any manner. This document may contain “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words “will”, “would”, “aim”, “aimed”, “will likely result”, “is likely”, “are likely”, “believe”, “expect”, “expected to”, “will continue”, “will achieve”, “anticipate”, “estimate”, “estimating”, “intend”, “plan”, “contemplate”, “seek to”, “seeking to”, “trying to”, “target”, “propose to”, “future”, “objective”, “goal”, “project”, “should”, “can”, “could”, “may”, “will pursue” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond BOC Aviation’s control that could cause the actual results, performance or achievements of BOC Aviation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Neither BOC Aviation nor any of its affiliates, agents, advisors or representatives (including directors, officers and employees) intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document. Any securities or strategies mentioned herein (if any) may not be suitable for all investors. Recipients of this document are required to make their own independent investigation and appraisal of the business and financial condition of BOC Aviation, and any tax, legal, accounting and economic considerations that may be relevant. This document contains data sourced from and the views of independent third parties. In replicating such data in this document, BOC Aviation does not make any representation, whether express or implied, as to the accuracy of such data. The replication of any views in this document should not be treated as an indication that BOC Aviation agrees with or concurs with such views. The information contained in this document is provided as at the date of this document and is subject to change without notice. 2 1H18 - Another Record Performance Strong earnings growth1 Robust balance sheet5 US$297 million 24% US$17.1 billion 7% Net profit after tax Total assets US$0.43 24% US$4.0 billion 4% Total equity Earnings per share2 US$5.75 4% Net assets per share2 Driven by: US$825 million 23% Higher dividend per share Total revenues and other income US$0.1284 24%7 US$312 million 20% Interim dividend per share6 Core lease rental contribution3 8.5% Stable Net lease yield4 All data as at 30 June 2018 Notes: 1. Compared to the first six months of 2017 2. Based on the number of shares outstanding as at the end of the relevant period 3. Calculated as lease rental income less depreciation and finance expenses, amortization of debt issue costs and lease transaction closing costs 4. Calculated as lease rental income less finance expenses divided by average net book value of aircraft 5. Compared to 31 December 2017 6. Payable to shareholders registered at the close of business on the record date, being 5 October 2018 7. Compared to US$0.1038 paid for 1H17 3 Continued Growth in Net Assets and Earnings Per Share US$ 6.0 0.5 0.43 0.36 1 0.4 0.35 0.29 0.3 5.0 5.75 5.50 0.2 5.10 4.87 0.1 4.0 0.0 2H16 1H17 2H17 1H18 Net assets per share (LHS) Earnings per share (RHS) 18% EPS CAGR since IPO All data as at the end of the relevant period Note: 1. Excludes the adjustment for net deferred tax liabilities in the USA 4 4Q/FY2018 Operational Performance Update • Ended 2018 with total fleet of 5111 • Portfolio utilization of 99.9% and cash collection rate of 99.5%2 • Average fleet age of 3.0 years3 • Average lease term of 8.3 years3 • Took delivery of 19 aircraft in 4Q18, and 55 aircraft in 20184 • Added 18 new airline customers in 2018 • Signed 27 lease commitments in 4Q18, and 92 in 2018 • Sold 41 aircraft in 2018 • 34 owned, seven managed • 79 aircraft scheduled to be delivered in 2019 • Company turned 25 in November 2018 2018 ended on a strong momentum All data as at 31 December 2018 unless otherwise indicated Notes: 1. Included owned, managed and aircraft on order 2. As at 30 June 2018 3. Weighted by net book value of owned fleet 4. Including three acquired by an airline customer on delivery in 4Q18 and five in 2018 5 1H18 Revenue and NPAT Growth Fleet growth underpins lift in revenues Operating margin > 40%2 US$ million 825 41.7% 41.5% 42.6% 42.6% 41.3% 670 579 520 535 1H14 1H15 1H16 1H17 1H18 1H14 1H15 1H16 1H17 1H18 Higher core lease rental contribution1 Strong NPAT growth US$ million 312 US$ million 297 259 240 220 212 192 203 163 171 1H14 1H15 1H16 1H17 1H18 1H14 1H15 1H16 1H17 1H18 All data as at 30 June 2018 Notes: 1. Calculated as lease rental income less depreciation and finance expenses, amortization of debt issue costs and lease transaction closing costs 2. Calculated as lease rental income less depreciation and finance expenses, amortization of debt issue costs and lease transaction closing costs divided by lease rental income 6 Lease Rental Income Dominates P&L Lease rental income consistently c.90% of total revenue and other income Interest & fee income and others US$ million 4.2% 825 Net gain on sale of aircraft 4.4% 670 37 48 753 607 1H17 1H18 Lease rental income Lease rental income Net gain on sale of aircraft 91.4% Interest & fee income and others Depreciation of aircraft plus financing costs make up >85% of total costs Other variable costs US$ million 495 5.6% Other fixed costs 402 8.0% 162 120 227 266 Finance Aircraft costs1 expenses 53.7% 1H17 1H18 1 32.7% Aircraft costs Finance expenses Other fixed costs Other variable costs All data as at 30 June 2018 Note: 1. Comprises aircraft depreciation and impairment charges 7 Core Leasing Business Anchors Earnings Growth c.80% of PBT is from core lease rental We have a longer average remaining lease contribution1 term2 Interest, fee income and others Number of years 10% 8.2 8.3 Net gain on sale 7.5 7.4 7.3 of aircraft 11% Core lease rental contribution 79% 2014 2015 2016 2017 2018 …and reflects rising investment in our fleet … and high future committed lease revenue US$ billion US$ billion (0.7) (0.3) 15.3 1.6 14.7 12.3 12.7bn 10.0 10.4 unchanged 13.7 14.3 since 1 Jan 18 Aircraft NBV Additions Sales Aircraft Aircraft NBV at 1 Jan 18 costs at 30 Jun 18 2014 2015 2016 2017 1H18 All data as at 30 June 2018 unless otherwise indicated Notes: 1. Calculated as lease rental income less depreciation and finance expenses, amortization of debt issue costs and lease transaction closing costs 2. Weighted by net book value of owned fleet 8 Consistently High Net Lease Yield Drives Profitability Higher lease rate factor1,5 reflects increased ... with a higher proportion of fixed rate debt proportion of fixed rate leases affecting finance expenses3,5 10.8% 3.1% 2.8% 10.5% 2.5% 10.3% 1.9% 2.0% 9.9% 9.8% 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 Proportion of fixed rate leases rising steadily2 Maintaining net lease yield > 8%4,5 By net book value 8.4% 8.5% 8.3% 8.2% 8.2% 30% 46% 34% 65% 56% 70% 54% 66% 35% 44% 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 Fixed rate Floating rate All data as at 30 June 2018 Notes: 1.