BBA Aviation plc

2012 Final Results

Results for the year ended 31 December 2012

For further information please contact:

Simon Pryce, Group Chief Executive (020) 7514 3999 Mark Hoad, Group Finance Director BBA AVIATION PLC

David Allchurch / Christian Cowley (020) 7353 4200 TULCHAN COMMUNICATIONS

A video interview with Simon Pryce, CEO and Mark Hoad, FD is now available on www.bbaaviation.com and www.cantos.com

A live audio webcast of the analyst presentation will be available from 09:00 today on www.bbaaviation.com and www.cantos.com FINAL RESULTS FOR PERIOD ENDED 31 DECEMBER 2012

Results in brief ($m) Underlying results1 Statutory results

2012 2011 % Change 2012 2011 % Change Revenue 2,178.9 2,136.7 2% 2,178.9 2,136.7 2% EBITDA 255.9 260.5 (2)% 230.8 250.1 (8)% Operating profit 195.4 198.9 (2)% 162.7 180.6 (10)% Profit before tax 163.0 170.2 (4)% 130.3 163.6 (20)% Earnings per share 2 29.0¢ 29.0¢ - 24.2¢ 32.5¢ (26)% Return on invested capital³ 10.0% 10.6% Free cash flow4 121.2 185.8 (35)% Net debt 416.4 403.6 Dividend per share 14.65¢ 13.94¢ 5%

(1) Before exceptional items (as defined in the financial statements). (2) Basic earnings per share. (3) Underlying operating profit return on average invested capital including goodwill and intangibles amortised or written off to reserves. (4) Cash generated by operations, plus dividends from associates, less tax, net interest and net capital expenditure. These definitions as outlined above are consistently applied throughout this results announcement.

Overview

 2% revenue growth despite weaker than expected markets – key B&GA and commercial markets down 1-4%.  Underlying operating profit adversely impacted by weak de-icing activity, strong operating improvement broadly offsetting market decline  Progress in underlying PBT and EPS in H2 as anticipated  Tax rate of 14.9% resulting in unchanged adjusted earnings per share  Planned exceptionals delivering structural cost reduction  Continued good cash conversion and invested capital discipline  Full year dividend increased by 5% to 14.65¢

Operational highlights

Flight Support (52% of Group EBIT)

 Organic revenue decline 4%, 1% decline ex de-icing and FBO exits, weak de-icing impacting margins  Signature: substantial lease extensions secured and major capital projects underway, success in San Jose  ASIG: good contract wins, addition of innovative technical services

Aftermarket Services and Systems (48% of Group EBIT)

 Organic revenue growth of 3%, positive operating margin development  ERO: expansion into Asia-Pacific region, continued focus on customer support  Legacy Support: revenue increased 13% with successful integration of fuel measurement business  APPH: operational improvements being delivered, organic sales growth of 9%

Continued strategic progress

 Further expansion of Signature network via acquisition, greenfield investment and Signature SelectTM licensing  ASIG enters Canada via C$27m acquisition of PLH Aviation Services and Dryden Air Services  Additional engine authorisations and legacy licences signed  Consolidated management structure to accelerate operational improvement and realisation of cross business opportunities

Simon Pryce, BBA Aviation Chief Executive Officer, commented:

“BBA Aviation had another year of operational improvement, structural cost reduction and strategic progress in 2012, together with good cash conversion against a backdrop of softer than anticipated markets throughout the year and a weak de-icing season.

Our major markets are broadly stable despite the subdued, global macroeconomic backdrop. Although we have yet to see any material effect on B&GA flying, and the potential impact of sequestration is uncertain, the economic indicators in the US are slowly beginning to improve. We are also carrying good underlying momentum into this year which, together with the incremental contribution from acquisitions means we therefore continue to anticipate making good progress in 2013.

Over the longer term, the underlying strengths of BBA Aviation’s market-leading businesses, the potential for further operational improvement, a strong balance sheet and the Group’s unique position in markets where leading indicators support medium-term recovery and structural growth potential, give us continued confidence in our ability to generate superior through-cycle returns.” 2

BBA Aviation plc – Final Results, 1 March 2013

FINAL RESULTS 2012

Overview

Against a backdrop of softer than anticipated markets throughout the year and a weak de-icing season, BBA Aviation had another positive year, continuing to deliver operational improvement and good cash conversion, whilst making good strategic progress.

In 2012 Group revenue increased by 2% to $2,178.9 million (2011: $2,136.7 million). Of this, $15.3m was the result of increased fuel prices and $56.5m came from acquisitions, net of disposals. On an organic basis (excluding the impact of fuel prices, acquisitions and disposals) therefore, Group revenue reduced by 1%.

Underlying operating profit (excluding the impact of exceptional items) declined $3.5 million or 2% to $195.4 million, and Group operating margin declined to 9.0% (2011: 9.3%). Adjusting for higher fuel prices, underlying margins were 9.0% (2011: 9.2 %). The decline in operating profits and margins was principally due to weaker de-icing when compared to both a normal de-icing season and to 2011.

The Group’s major structural cost reduction and operational initiatives for 2012 have been delivered to plan with good operational improvement achieved in 2012 and incremental benefit expected in 2013. We continue to see significant potential for further improvement in our businesses through additional operational synergies, increased cross business co-operation, and the sharing of best in class process and practice across the Group. With effect from 1 January, we have therefore consolidated the operational management of our Flight Support businesses under one management team headed by Michael Scheeringa who previously ran Signature, and our Aftermarket Services businesses under a team headed by Peg Billson who previously ran Legacy Support. This organisational change is expected to enhance our market and customer focus, to develop and deploy our human resources more effectively and to accelerate the delivery of these cross business and operational improvement opportunities.

The net interest expense increased to $32.4 million (2011: $28.7 million) reflecting the cost of the new long- term bank and private placement debt facilities put in place in 2011. As expected the interest expense was lower in the second than first half when $2 million of cost was accelerated, principally due to closing out interest rate swaps as part of on-going treasury management. Interest cover reduced to 7.9x as a result (2011: 9.1x), and underlying profit before tax decreased by 4% to $163.0 million (2011: $170.2 million).

The underlying tax rate of 14.9% (2011: 20.3%) was lower than originally anticipated due to favourable developments in the effectiveness and sustainability of our tax structure. Despite the reduction in underlying operating profit and increased net interest expense, adjusted earnings per share were therefore unchanged at 29.0¢ (2011: 29.0¢).

Profit before tax declined by $33.3m to $130.3 million (2011: $163.6 million), with exceptional items increasing to $32.7 million (2011: $6.6 million) of which $12.0m was non-cash. As anticipated, exceptional items included $13.4 million of structural cost initiatives including the closure of APPH’s Basingstoke facility and consolidation of transactional processing in finance. We also incurred $6.6 million of acquisition costs relating in part to those acquisitions which we successfully executed during the year, but mainly in relation to a number of larger opportunities which we did not execute as they failed to meet our rigorous capital investment criteria. We continue to see good opportunities for further consolidation in the markets in which we operate, but will only execute acquisitions at prices where we see good opportunities for value creation. Non-cash amortisation of acquired intangibles totalled $7.6 million (2011: $7.9 million). Included within the prior year was an exceptional tax credit of $23.7 million relating to the settlement of an old outstanding tax claim in Germany together with $11.7 million of associated interest. Unadjusted earnings per share were 24.2¢ (2011: 32.5¢).

Free cash flow was again good at $121.2 million (2011: $185.8 million) with the reduction from 2011 largely attributable to the inclusion in the prior year of a $35.4 million refund of tax and associated interest outlined above, together with increased capital investment related to growth projects and lease extensions in 2012. As anticipated, the increase in net capital expenditure to $55.4 million (2011: $29.3 million) reflected a number of large projects including the establishment of the Legacy fuel measurement facility in Cheltenham and the relocation of Signature’s FBO at Chicago O’Hare International Airport, as well as asset disposals in the prior

3 year including in relation to the Miami FBO. Tax payments increased to $4.9 million (2011: inflow $8.5 million) with the prior year benefiting from the German tax refund referred to above.

Total spend on acquisitions and licences completed in the year amounted to $35.5 million, including the $27 million acquisition of the trade and assets of PLH Aviation Services and Dryden Air Services, $3.4 million acquisition of the FBO in Omaha, Nebraska, $2.8 million acquisition of the Sun Aircraft Services maintenance business at Washington Dulles and ERO’s $1.9 million acquisition of Consolidated Turbine Support, Inc.

There was a net cash outflow of $13.6 million after paying dividends of $67.9 million. Net debt increased marginally to $416.4 million (2011: $403.6 million). Our balance sheet remains strong with net debt to EBITDA at 1.6x (2011: 1.5x).

Return on invested capital reduced to 10.0% (2011: 10.6%), compared with our through cycle target of 12% pre-tax.

Business Review

Flight Support

Flight Support revenues declined by 1% to $1,321.8 million (2011: $1,330.1 million). Higher fuel prices increased revenue by $15.3 million and the net impact of acquisitions and disposals contributed an additional $32.5 million of revenue. On an organic basis Flight Support revenues decreased by 4%. Of this, 1% related to the general reduction in market activity in both business and general aviation (B&GA) and commercial aircraft movements together with the modest impact on both B&GA and commercial movements from Hurricane Sandy. A further 1% related to weaker de-icing and 2% was due to our exit early in the second half of 2011 from the Miami and Tampa FBOs.

This adversely impacted underlying operating profit for the division, which declined to $112.5 million (2011: $124.6 million) and operating margins which reduced by 80 basis points to 8.5% (2011: 9.3%) after adjusting fuel prices, with the benefit of continued operational improvement more than offset by the shortfall in high margin de-icing activity.

Despite a challenging year, Flight Support again demonstrated strong cash generation with an operating cash flow for the division of $116.6 million (2011: $189.1 million) and cash conversion of 104% (2011: 152%). Return on invested capital reduced by 120 basis points to 9.4% (2011: 10.6%) reflecting the reduction in underlying operating profit.

Signature’s headline revenue increased by 1% to $952.9 million (2011: $946.4 million). US B&GA activity decreased by 1% in the year and European B&GA movements declined by 4%. Revenue reduced by 3% organically, which was mainly driven by the exits from Miami and Tampa in 2011. Continued share gains broadly offset market softness and weakness in fractional flying, which is a greater proportion of Signature’s business than it is of the broader market due to the location of Signature’s FBOs.

Signature continued to expand its network both by way of acquisition and through the increasingly successful Signature SelectTM initiative adding four locations during the year in Daytona, Florida; Green Bay, Wisconsin; Edmonton, Canada; and Forth Worth, Texas. All of these locations have been integrated into the existing network successfully and are performing as expected. Additionally the network was extended in Germany with a greenfield operation at Berlin-Schönefeld and we successfully completed and integrated the previously announced FBO acquisition in Omaha, Nebraska. We recently acquired Sun Aircraft Services, a line maintenance business in support of our FBO at Washington Dulles airport.

Significant progress was made in securing lease extensions at 10 important locations including three sole source FBOs. We commenced two major construction projects with the dedicated NetJets private terminal at Palm Beach International Airport and a new FBO construction at Newark Liberty International Airport associated with a lease extension. A new FBO terminal facility at Chicago O’Hare International Airport opened in August 2012 and since the year-end we have agreed a new 45 year lease at Luton, England and have broken ground on a $32 million terminal redevelopment. We have also recently been identified as the preferred bidder in the RFP at Mineta San Jose International Airport. San Jose airport staff will recommend to the airport authority the award of the RFP which will see Signature spend circa $28 million over three years

4 with the FBO operational in 2015. There are now a total of 115 FBOs in the network globally, with 70 of these in North America.

There was good operational progress in the year, improving the safety and quality of the services provided whilst reducing the costs of delivering them. The on-going focus on customer service resulted in another increase in our customer loyalty score from 80% to 84%. Signature also introduced its TailWins customer loyalty programme aimed at rewarding pilots, schedulers, dispatchers and flight departments for fuel and handling purchases and in the first 8 months of operation the programme has gained 11,900 members.

ASIG’s revenue declined by 4% to $368.9 million (2011: $383.7 million). Commercial movements in the year reduced by 2% in North America and by 3% in Europe. On an organic basis revenue declined by 6%, reflecting reduced commercial aviation movements and the limited de-icing activity particularly in the first half of the year when compared to both a normal de-icing season and to 2011. Despite industry wide TSA employee badging issues in the US, management flexed labour well to deal with decline in movements and saw good contract gains.

Refuelling contracts were renewed by Federal Express at 27 US airports including two of their busiest hubs, Indianapolis and Alliance Fort Worth. We successfully renewed aircraft de-icing agreements with U.S. Airways at eight U.S. airports for a fourth consecutive year. Additionally, after a competitive bid process, Los Angeles World Airports re-awarded the facilities technical maintenance contract for their loading bridges, baggage handling system and a variety of other airport terminal equipment at Terminal 3.

We also secured several new refuelling contracts in 2012 as well as new agreements with low cost carrier Spirit Airlines to provide a variety of ground handling and aircraft refuelling services at four US airports, including their home base at Fort Lauderdale, Florida. We now provide a variety of support services to this growing carrier at 11 airports within the US. There was the disappointing loss of a significant cabin cleaning contract at Heathrow early in the year, but United Airlines awarded new cleaning contracts at three UK airports including London Heathrow.

During the period, we signed an exclusive agreement with GE Aviation to become its third-party service provider for ClearCore™ engine wash systems for commercial and military engines in the US. The agreement represents an innovative and exciting extension of our technical services capability, supporting customers seeking savings on fuel consumption and engine maintenance costs.

As previously announced, we acquired for C$27 million (US$27 million) the trade and assets of PLH Aviation Services and Dryden Air Services, market-leading airport services providers delivering fuel farm management, into-plane refuelling, ground handling and de-icing services. This marks ASIG’s entry into the attractive Canadian market resulting in 16 new airport locations in Canada, as well as an enhanced operational capability at Los Angeles International Airport. The acquisition is expected to achieve the Group’s ROIC target in the first full year of ownership.

Aftermarket Services

Revenue in Aftermarket Services increased by 6% to $857.1 million (2011: $806.6 million). Of the increase, half was organic and there was a $24.0 million revenue contribution from acquisitions. Underlying operating profit increased by 10% to $100.5 million (2011: $91.5 million) and operating margins improved by 40 basis points to 11.7% (2011: 11.3%).

Operating cash flow for the division was also strong at $93.1 million (2011: $89.7 million) with 93% of operating profit converted into operating cash flow (2011: 98%). This was net of the $5.9 million cash cost of establishing the Legacy fuel measurement facility in Cheltenham. Return on invested capital improved by a further 50 basis points to 11.2% (2011: 10.7%).

Revenue in Engine Repair and Overhaul (“ERO”) improved by 5% to $641.2 million (2011: $613.0 million), of which 3% was organic. Overhaul activity was particularly strong in the first half, supported by a healthy engine backlog going into the year, and by ERO’s continued focus on customer support. Overhaul activity slowed somewhat in the second half, reflecting the reduced B&GA activity in the second half of 2011 and into 2012.

We added a number of new engine authorisations and service capabilities during the year. This included the Honeywell HTF7000 engine series through the acquisition of Consolidated Turbine Services which enabled us 5 to be an immediate provider of field service for engines on the Bombardier Challenger 300 fleet and the new Gulfstream G280 certificated in 2012. We also received authorisation from Rolls-Royce to perform field service on the BR710 engine which powers Gulfstream G550 and Bombardier Global Express long-range aircraft, and authorisation from Pratt & Whitney Canada for three additional PW500 series engines, giving the division approval to overhaul all seven PW500 models in operation. ERO is the only independent repair and overhaul business to offer this breadth of overhaul service for the entire PW500 family of engines that currently power Cessna and Embraer aircraft types. We also added General Electric approval for the CT7-8 engine which powers new multi-engine Sikorsky S92 and AgustaWestland AW101 helicopters.

A new Regional Turbine Centre (RTC) was opened in Singapore during the year with extensive Honeywell engine support capabilities. Bombardier Aerospace and ERO reached an agreement for us to provide engine support for all Bombardier North American service centres along with global field service. We now hold approvals on all engines used in current production business aircraft by Bombardier as well as many of its legacy products.

The business continues to focus on internal efficiency opportunities and developed 25 new repair schemes for a number of engine models during the year. These repairs provide cost savings, improved turn times and better control on part quality.

Legacy Support’s revenue increased by 13% to $147.3 million (2011: $130.1 million) of which 2% was organic with the remaining growth coming from the incremental revenue contribution of the GE fuel measurement business. Legacy Support has more than trebled in size since its acquisition in 2006.

During 2012, we completed the build-out of our Cheltenham facility to support the newly acquired fuel measurement business and successfully transitioned all fuels production lines. The fuels transition serves as further evidence of our proven and unique product adoption process, with over 130 product lines successfully adopted and integrated.

We made further progress on our strategy to grow our electronics capability to address the rapidly growing demand for legacy electronic products with the recent completion of a 4,000 square foot electronics manufacturing and repair facility at our Chatsworth location and the creation of similar capabilities at the Cheltenham facility. Electronics product lines now account for more than a third of Legacy Support revenues.

During the year Legacy Support signed a number of new licence agreements, importantly with new licensors, for several electronic and electro-mechanical aircraft product lines.

In APPH, revenue increased to $68.6 million (2011: $63.5 million), with 9% organic growth which was principally driven by increased spares sales.

We continued to win new business and secured Hawk orders to fulfil BAE Systems’ sales to both India and Saudi Arabia, secured contracts to design and build upgraded landing gear for the Saab Gripen E, and were awarded the landing gear package orders on the new Super Lynx 300. New programme ramp-ups have proceeded well, with first deliveries on the AgustaWestland AW159 programme.

Management continues to drive operational improvement and in the year announced and completed the closure of its Basingstoke facility and successfully transferred to its Runcorn facility the component repair and overhaul capability to support its in-house needs.

Other Financial Information

Unallocated central costs were broadly unchanged at $17.6 million (2011: $17.2 million).

Net debt at the end of the period was $416.4 million (2011: $403.6 million) with a net cash outflow of $13.6 million and a favourable foreign exchange movement of $0.8m.

At the end of the period $500 million of the total borrowing commitments of $1,050 million remained undrawn and net debt to EBITDA was 1.6x (2011: 1.5x) with the increase a result of reduced underlying EBITDA. Interest cover stands at 7.9x (2011: 9.1x).

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The combined accounting deficit for the UK and US pension schemes increased to $66.3 million (2011: $53.5 million), principally as a result of a further reduction in corporate bond yields which increased gross liabilities. The Company made deficit contribution payments to the UK scheme of $6.1 million during the year, and has agreed to pay a further $7.7 million per annum during 2013 and 2014. The next triennial valuation is currently underway.

A revised pensions accounting standard, IAS 19, is effective from 1 January 2013. The impact of this revised standard is to move scheme administration costs from net interest expense to operating expenses, and to calculate interest income on scheme assets based on the scheme discount rate rather than on expected returns on scheme assets. Had IAS 19 been effective in 2012, underlying profit before tax would have been $5.2 million lower and adjusted basic EPS 1.1 cents per share lower.

During the year €50 million and $75 million of cross currency swaps were closed out at a cash cost of $10.9 million. As at 31 December 2012 $125 million of cross currency swaps with a mark-to-market loss of $21.8 million remained outstanding, all of which are due to mature in the first half of 2013.

Dividend The Board is proposing a final dividend of 10.45 cents per share (2011: 9.95 cents per share), taking the full year dividend to 14.65 cents per share (2011: 13.94 cents per share). This is a 5% increase and reflects the Board’s progressive dividend policy and continuing confidence in the Group’s medium-term growth prospects.

Outlook

BBA Aviation had another year of operational improvement, structural cost reduction and strategic progress in 2012, together with good cash conversion against a backdrop of softer than anticipated markets throughout the year and a weak de-icing season.

Our major markets are broadly stable despite the subdued, global macroeconomic backdrop. Although we have yet to see any material effect on B&GA flying, and the potential impact of sequestration is uncertain, the economic indicators in the US are slowly beginning to improve. We are also carrying good underlying momentum into this year which, together with the incremental contribution from acquisitions means we therefore continue to anticipate making good progress in 2013.

Over the longer term, the underlying strengths of BBA Aviation’s market-leading businesses, the potential for further operational improvement, a strong balance sheet and the Group’s unique position in markets where leading indicators support medium-term recovery and structural growth potential, give us continued confidence in our ability to generate superior through-cycle returns.

Going Concern The Directors have carried out a review of the Group’s trading outlook and borrowing facilities (as outlined above), with due regard to the risks and uncertainties to which the Group is exposed, the uncertain economic climate and the impact that this could have on trading performance. Based on this review, the Directors believe that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Directors’ Responsibilities

The responsibility statement below has been prepared in connection with the Company's full annual report for the year ending 31 December 2012. Certain parts of the annual report are not included within this announcement.

We confirm that to the best of our knowledge:

 the financial statements, prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and

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 the management report, which is incorporated into the Directors' Report, includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties they face.

Signed on behalf of the Board,

Simon Pryce Mark Hoad Group Chief Executive Group Finance Director

28 February 2013 28 February 2013

This final results announcement contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and services; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome of litigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This report is available in electronic format from the Company’s website, www.bbaaviation.com

8

Consolidated Income Statement

2012 2011

Exceptional Exceptional Underlying1 items Total Underlying1 items Total

$m $m $m $m $m $m

Revenue 2,178.9 - 2,178.9 2,136.7 - 2,136.7 Cost of sales (1,766.5) - (1,766.5) (1,729.4) - (1,729.4) Gross profit 412.4 - 412.4 407.3 - 407.3

Distribution costs (38.8) - (38.8) (39.4) - (39.4) Administrative expenses (182.3) (7.6) (189.9) (174.6) (7.9) (182.5)

Other operating income 2.8 - 2.8 4.6 - 4.6

Share of profit of associates 1.6 - 1.6 2.0 - 2.0

Other operating expenses (0.3) (8.1) (8.4) (1.0) (3.8) (4.8)

Restructuring costs - (17.0) (17.0) - (1.3) (1.3)

Loss on disposal of businesses - - - - (5.3) (5.3) Operating profit 195.4 (32.7) 162.7 198.9 (18.3) 180.6

Investment income 6.0 - 6.0 10.7 11.7 22.4 Finance costs (38.4) - (38.4) (39.4) - (39.4)

Profit before tax 163.0 (32.7) 130.3 170.2 (6.6) 163.6

Tax (24.3) 9.5 (14.8) (34.5) 23.0 (11.5) Profit for the period 138.7 (23.2) 115.5 135.7 16.4 152.1

Attributable to:

Equity holders of the parent 139.0 (23.2) 115.8 136.0 16.4 152.4

Non-controlling interest (0.3) - (0.3) (0.3) - (0.3) 138.7 (23.2) 115.5 135.7 16.4 152.1

1 Before exceptional items. Exceptional items are items which are material or are non-recurring in nature, costs relating to acquisitions and the amortisation of acquired intangibles.

Earnings per share Adjusted Unadjusted Adjusted Unadjusted Basic 29.0c 24.2c 29.0c 32.5c

Diluted 28.5c 23.8c 28.3c 31.7c

9 Consolidated Statement of Comprehensive Income

2012 2011 $m $m

Profit for the period 115.5 152.1

Other comprehensive income:

Exchange difference on translation of foreign operations (24.6) (2.0)

Gains/(losses) on net investment hedges 33.2 (1.9)

Fair value movements in foreign exchange cash flow hedges 5.1 (1.4)

Transfer to profit or loss from equity on foreign exchange cash flow hedges (0.8) 2.4

Fair value movements in interest rate cash flow hedges (5.4) (6.7)

Transfer to profit or loss from equity on interest rate cash flow hedges 10.3 9.4

Actuarial losses on defined benefit pension schemes (23.0) (16.7)

Tax relating to components of other comprehensive income 8.8 4.0

Total comprehensive income for the period 119.1 139.2

Attributable to:

Shareholders of BBA Aviation plc 119.4 139.5

Non-controlling interests (0.3) (0.3)

119.1 139.2

10 Consolidated Balance Sheet 31 31 December December 2012 2011 $m $m

Non-current assets

Goodwill 834.7 806.6 Other intangible assets 174.1 176.2 Property, plant and equipment 511.5 517.4 Interests in associates 5.0 4.2 Trade and other receivables 53.7 43.2 Deferred tax asset 6.0 10.5 1,585.0 1,558.1 Current assets

Inventories 261.8 233.9 Trade and other receivables 377.3 353.5 Cash and cash equivalents 151.1 125.1 Tax recoverable 11.0 0.4 801.2 712.9 Total assets 2,386.2 2,271.0

Current liabilities

Trade and other payables (471.1) (427.1) Tax liabilities (96.1) (86.1) Obligations under finance leases (1.5) (1.5) Borrowings (11.2) (23.7) Provisions (3.9) (1.1) (583.8) (539.5) Net current assets 217.4 173.4

Non-current liabilities

Borrowings (580.6) (519.7) Other payables due after one year (23.5) (62.8) Retirement benefit obligations (66.3) (53.5) Obligations under finance leases (1.4) (2.9) Deferred tax liabilities (82.0) (84.1) Provisions (27.2) (28.8) (781.0) (751.8) Total liabilities (1,364.8) (1,291.3) Net assets 1,021.4 979.7

Equity

Share capital 251.5 250.1 Share premium account 732.8 732.4 Other reserves 6.9 6.9 Treasury reserve (5.5) (9.0) Capital reserve 34.4 39.2 Hedging and translation reserves (38.0) (55.8) Retained earnings 43.8 19.8 Equity attributable to shareholders of BBA Aviation plc 1,025.9 983.6 Non-controlling interest (4.5) (3.9) Total equity 1,021.4 979.7

11 Consolidated Cash Flow Statement

2012 2011 $m $m

Operating activities Net cash flow from operating activities 207.2 235.6

Investing activities Interest received 7.3 18.0 Dividends received from associates 0.8 1.0 Purchase of property, plant and equipment (51.1) (38.5) Purchase of intangible assets (5.4) (5.4) Proceeds from disposal of property, plant and equipment 0.7 14.6 Acquisition of subsidiaries (35.1) (128.7) Proceeds from disposal of businesses - 3.3 Investment in associates - (0.2) Deferred consideration on prior year acquisitions - (0.4) Net cash outflow from investing activities (82.8) (136.3)

Financing activities Interest paid (38.3) (39.0) Interest element of finance leases paid (0.4) (0.5) Dividends paid (67.9) (63.7) Losses from realised foreign exchange contracts (20.8) (41.2) Proceeds from issue of ordinary shares 1.8 141.9 Issue of loan notes - 300.0 Purchase of own shares (12.4) - Increase/(decrease) in loans 52.5 (411.4) Decrease in finance leases (1.5) (1.4) Decrease in overdrafts (12.1) (19.6) Net cash outflow from financing activities (99.1) (134.9)

Increase/(decrease) in cash and cash equivalents 25.3 (35.6) Cash and cash equivalents at beginning of year 125.1 169.1 Exchange adjustments 0.7 (8.4) Cash and cash equivalents at end of year 151.1 125.1

Net debt at beginning of year (403.6) (492.8) Increase/(decrease) in cash and cash equivalents 25.3 (35.6) (Increase)/decrease in loans (52.5) 111.4 Decrease in finance leases 1.5 1.4 Decrease in overdrafts 12.1 19.6 Exchange adjustments 0.8 (7.6) Net debt at end of year (416.4) (403.6)

12 Consolidated Statement of Changes in Equity

Non- Share Share Retained Other controlling Total capital premium earnings reserves Total interests equity $m $m $m $m $m $m $m

Balance at 1 January 2011 228.6 612.1 (58.1) (21.1) 761.5 (4.1) 757.4 Total comprehensive income for the period - - 139.7 (0.3) 139.4 (0.2) 139.2 Dividends - - (63.7) - (63.7) - (63.7) Issue of share capital 21.5 120.3 - - 141.8 - 141.8 Movement on treasury reserve - - - (1.3) (1.3) - (1.3) Credit to equity for equity-settled share- - - - 4.4 4.4 - 4.4 based payments Deferred tax on share-based payment - - 1.5 - 1.5 - 1.5 transactions Changes in non-controlling interests - - - - - 0.4 0.4 Transfer to retained earnings - - 0.4 (0.4) - - - Balance at 1 January 2012 250.1 732.4 19.8 (18.7) 983.6 (3.9) 979.7 Total comprehensive income for the period - - 101.6 17.8 119.4 (0.3) 119.1 Dividends - - (67.9) - (67.9) - (67.9) Issue of share capital 1.4 0.4 - - 1.8 - 1.8 Movement on treasury reserve - - - (12.4) (12.4) - (12.4) Credit to equity for equity-settled share- - - - 0.9 0.9 - 0.9 based payments Deferred tax on share-based payment - - 0.5 - 0.5 - 0.5 transactions Changes in non-controlling interests - - - - - (0.3) (0.3) Transfer to retained earnings - - (10.2) 10.2 - - - Balance at 31 December 2012 251.5 732.8 43.8 (2.2) 1,025.9 (4.5) 1,021.4

13 Basis of preparation

The preliminary results for the year ended 31 December 2012 are an abridged statement of the full financial statements which were approved by the Board of Directors on 28 February 2013. The Consolidated Financial Statements within the full annual report are prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union and therefore comply with Article 4 of the EU IAS Regulation. They have also been prepared in accordance with IFRS as issued by the International Accounting Standards Board.

The auditor’s report on those Consolidated Financial Statements was unqualified, did not draw attention to any matters by way of emphasis without qualifying their report, and did not contain statements under s498(2) or (3) of the Companies Act 2006. The preliminary results do not comprise statutory accounts within the meaning of section 434(3) of the Companies Act 2006. The annual report for the year ended 31 December 2012 will be delivered to the Registrar of Companies following the Company’s annual general meeting to be held on 10 May 2013.

The financial information included in this preliminary announcement does not contain sufficient information to comply with IFRS. The Company will publish full financial statements that comply with IFRS in March 2013.

The financial information included in this preliminary announcement has been prepared in accordance with the accounting policies set out in the financial statements for the year ended 31 December 2012, except where identified below. There were no new accounting standards or interpretations that became effective during the financial year that would be expected to have a material impact on the Group.

The exchange rates used to translate the key non-US dollar flows and balances were:

2012 2011 2010

Sterling – average 1.59 1.60 1.55 Sterling - spot 1.62 1.55 1.57 Euro – average 1.29 1.39 1.34 Euro - spot 1.33 1.29 1.34

14 Notes to the Consolidated Financial Statements

1 Segmental information

Flight Aftermarket Unallocated Support Services Total Corporate Total

Business Segments $m $m $m $m $m 2012

External revenue 1,321.8 857.1 2,178.9 - 2,178.9

Underlying operating profit 112.5 100.5 213.0 (17.6) 195.4 Exceptional items (16.5) (14.4) (30.9) (1.8) (32.7) 1 Segment result 96.0 86.1 182.1 (19.4) 162.7 Underlying operating margin 8.5% 11.7% 9.8% - 9.0%

Other information Capital additions2 34.2 20.5 54.7 1.8 56.5 Depreciation and amortisation 47.4 20.4 67.8 0.3 68.1

Balance sheet Total assets 1,303.3 853.9 2,157.2 229.0 2,386.2 Total liabilities (206.7) (200.1) (406.8) (958.0) (1,364.8) Net assets 1,096.6 653.8 1,750.4 (729.0) 1,021.4

1 Segment result includes $1.6 million profit of associates within Flight Support. 2 Capital additions represent cash expenditures in the year.

Flight Aftermarket Unallocated Support Services Total Corporate Total

Business Segments $m $m $m $m $m 2011

External revenue 1,330.1 806.6 2,136.7 - 2,136.7

Underlying operating profit 124.6 91.5 216.1 (17.2) 198.9 Exceptional items (13.3) (3.1) (16.4) (1.9) (18.3) Segment result1 111.3 88.4 199.7 (19.1) 180.6 Underlying operating margin 9.4% 11.3% 10.1% - 9.3%

Other information Capital additions2 24.1 19.8 43.9 - 43.9 Depreciation and amortisation 46.5 22.0 68.5 0.3 68.8

Balance sheet Total assets 1,246.6 804.7 2,051.3 219.7 2,271.0 Total liabilities (199.3) (166.6) (365.9) (925.4) (1,291.3) Net assets 1,047.3 638.1 1,685.4 (705.7) 979.7

1 Segment result includes $2.0 million profit of associates within Flight Support. 2 Capital additions represent cash expenditures in the year.

15 1 Segmental analysis - continued

Revenue by Revenue by Capital Non-current destination origin additions1 assets Geographical Segments $m $m $m $m 2012

United Kingdom 282.0 401.0 13.8 253.1 Mainland Europe 125.7 42.1 0.8 44.0 North America 1,650.9 1,720.6 41.9 1,278.8 Rest of world 120.3 15.2 - 9.1 Total 2,178.9 2,178.9 56.5 1,585.0

2011

United Kingdom 290.1 404.5 8.7 236.6 Mainland Europe 138.9 50.4 0.3 43.1 North America 1,593.6 1,676.5 34.9 1,272.7 Rest of world 114.1 5.3 - 5.7 Total 2,136.7 2,136.7 43.9 1,558.1

1 Capital additions represent cash expenditures in the year.

An analysis of the Group’s revenues for the year is as follows:

Revenue from sale of goods Revenue from services

2012 2011 2012 2011

$m $m $m $m

Flight Support 821.1 817.6 500.7 512.5 Aftermarket Services 247.5 229.6 609.6 577.0 1,068.6 1,047.2 1,110.3 1,089.5

2 Net capital expenditure 2012 2011 $m $m

Net capital expenditure 55.4 29.3

Net cash capital expenditure to depreciation - times 0.8 0.5

3 Number of employees 2012 2011

At 31 December 11,430 10,415

16 4 Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data: 2012 2011 $m $m

Basic and diluted Earnings: Profit for the period 115.5 152.1 Non-controlling interests 0.3 0.3 Basic earnings attributable to ordinary shareholders 115.8 152.4 Exceptional items (net of tax) 23.2 (16.4) Adjusted earnings and diluted earnings 139.0 136.0

Number of shares Weighted average number of 29 16/21p ordinary shares: For basic earnings per share 478.8 468.6 Exercise of share options 8.4 12.8 For diluted earnings per share 487.2 481.4

Earnings per share Basic: Adjusted 29.0c 29.0c Unadjusted 24.2c 32.5c

Diluted: Adjusted 28.5c 28.3c Unadjusted 23.8c 31.7c

Adjusted earnings per share is shown calculated on earnings before exceptional items because the directors consider that this gives a useful indication of underlying performance.

5 Income tax expense 2012 2011 $m $m Current tax 8.2 24.3 Adjustments in respect of prior years – current tax (1.5) (23.3) Deferred tax 11.5 8.4 Adjustments in respect of prior years – deferred tax (3.4) 2.1 Income tax expense for the year 14.8 11.5

17 6 Cash flow from operating activities 2012 2011 $m $m

Operating profit 162.7 180.6 Share of profit from associates (1.6) (2.0) Profit from operations 161.1 178.6

Depreciation of property, plant and equipment 52.7 53.0 Amortisation of intangible assets 15.4 15.8

Profit on sale of property, plant and equipment (0.3) (2.4) Share-based payment expense 0.9 5.6

Decrease in provisions - (1.5)

Pension scheme payments (11.0) (14.1)

Other non-cash items 4.8 0.9

Unrealised foreign exchange movements 1.3 (1.9)

Non-cash impairments - 0.7

Loss on disposal of businesses - 4.6 Operating cash flows before movements in working capital 224.9 239.3

Increase in working capital (12.8) (12.2) Cash generated by operations 212.1 227.1

Income taxes (paid)/received (4.9) 8.5

Net cash flow from operating activities 207.2 235.6

Dividends received from associates 0.8 1.0 Purchase of property, plant and equipment (51.1) (38.5)

1 (5.0) (5.4) Purchase of intangible assets Proceeds from disposal of property, plant and equipment 0.7 14.6 Interest received 7.3 18.0

Interest paid (38.3) (39.0)

Interest element of finance leases paid (0.4) (0.5)

Free cash flow 121.2 185.8

1 Purchase of intangible assets excludes $0.4 million (2011: $nil) paid in relation to Ontic licences since the directors believe these payments are more akin to expenditure in relation to acquisitions, and are therefore outside of the Group’s definition of free cash flow. These amounts are included within purchase of intangible assets on the face of the cash flow statement.

18 7 Exceptional items

Exceptional items included within profit before tax amounted to a charge of $32.7 million (2011: charge of $6.6 million).

In the year ended 31 December 2012, exceptional items amounting to a charge of $32.7 million are included within operating profit, and include restructuring expenses of $17.0 million which includes $8.6 million in respect of re-sizing manufacturing capacity, $3.6 million for management reorganisation and $4.8 million investment in efficiency projects; amortisation of intangible assets acquired and valued in accordance with IFRS 3 of $7.6 million included within administrative expenses; and $6.6 million of acquisition costs and $1.5 million environmental provision costs included within other operating expenses.

In the year ended 31 December 2011, exceptional items amounting to a charge of $18.3 million are included within operating profit, and include restructuring expenses of $1.3 million; amortisation of intangible assets acquired and valued in accordance with IFRS 3 of $7.9 million included within administrative expenses; $3.2 million of acquisition costs included within other operating expenses; and a $5.3 million loss on disposal of business relating principally to a goodwill write down following exit from the Tampa FBO.

In addition, in 2011, the Group received an exceptional tax refund of $23.7 million included within the exceptional tax credit, relating to the settlement of an old outstanding tax claim in Germany, together with associated exceptional interest receivable of $11.7 million.

8 Acquisitions and disposals

During the year the group made a number of acquisitions in its Signature Flight Support, ASIG and Engine Repair and Overhaul divisions.

Signature Flight Support purchased two businesses for a total initial consideration of $6.2 million, which expanded the network with an additional FBO at Eppley Field, Omaha and a maintenance operation at Washington Dulles. The fair value of the net assets acquired has been assessed as a total of $2.3 million, with goodwill of $3.9 million arising on acquisition.

ASIG acquired substantially all the assets of Dryden Air Services Inc, PLH Aviation Services Inc and PLH Aviation Services (YVR) Inc, airport services providers predominantly based in Canada, for a consideration of $27.0m. The fair value of the net assets acquired has been initially assessed as a total of $8.4 million, with goodwill of $18.6 million arising on acquisition.

Engine Repair and Overhaul acquired substantially all the assets of Consolidated Turbine Support Inc, a mobile engine support business based in Phoenix, Arizona for a consideration of $1.9m. The fair value of the net assets acquired has been assessed as a total of $1.9 million.

In the period from the date of acquisition to 31 December 2012, the acquired business generated an aggregate total revenue and operating profit of $28.1 million and $1.6 million respectively. . 9 Retirement obligations

The defined benefit obligation at 31 December 2012 for the UK Income and Protection Plan is estimated based on the latest actuarial valuation at 31 March 2009, with assumptions updated to reflect market conditions at 31 December 2012 where appropriate. The defined benefit plan assets have been updated to reflect their market value as at 31 December 2012. The Group’s foreign retirement obligations relate to a number of funded final salary defined benefit pension arrangements in North America. Pension costs are calculated by independent qualified actuaries, using the projected unit method and assumptions appropriate to the arrangements in place.

As at 31 December 2012 the update of the actuarial valuations of the UK and US schemes indicates a net deficit of $66.3 million (2011: $53.5 million).

The next triennial valuation of the UK scheme is due to be completed during the course of 2013.

19 10 Dividends

The directors recommend the payment of a final dividend of 10.45c per ordinary share on 24 May 2013 to shareholders on the register at the close of business on 12 April 2013. This dividend is subject to approval by shareholders at the Annual General Meeting and in accordance with IAS 10 “Events after the Reporting Period” has not been included as a liability in these financial statements.

Shareholders will receive their dividends in sterling unless they have previously elected to receive their dividends in US dollars. Shareholders who wish to receive dividends in US dollars must make the appropriate election to Capita Registrars no later than 5.30pm Monday 29 April 2013. A new election is not required if shareholders have previously made a valid election to receive dividends in US dollars. The dividend will be converted at a prevailing exchange rate on 30 April 2013 and this rate will be announced on 1 May 2013.

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