BOC Aviation : Financial Statements/ESG Information - 2021 ANNUAL REPORT

ANNUAL

REPORT 2021

As the world commenced its recovery from the worst effects of Covid, BOC Aviation's 2021 earnings rose in line with better airline customer cashflows and rising activity levels across the aviation industry.

Chen Huaiyu

Chairman

CONTENTS

• 02 Financial Highlights

• 05 Portfolio and Operational Highlights

• 08 Chairman's Statement

• 10 Chief Executive's Comments

• 12 Business and Financial Review

• 22 Management Discussion and Analysis

• 35 Directors, Officers and Senior Management

• 41 Corporate Governance Report

• 63 Directors' Statement

• 78 Five Year Financial Summary

• 79 Environmental, Social and Governance Report

• 146 Corporate Information

• 147 Definitions

  Appendix A - Financial Statements

FINANCIAL HIGHLIGHTS

Our financial highlights for the year ended 31 December 2021 are:

• • Total revenues and other income were up 6% year-on-year, at US$2.2 billion

• • Profit before tax was US$639 million and net profit after tax was US$561 million, rising 13% and 10% respectively from 2020

• • Earnings per share of US$0.81 and net assets per share of US$7.59

• • Total assets were stable year-on-year, at US$23.9 billion at 31 December 2021

• • Raised US$3.5 billion in new financing

• • Maintained strong liquidity with US$485 million in cash and cash equivalents, and US$5.6 billion in undrawn committed credit facilities at 31 December 2021

• • Stable operating cash flows net of interest at US$1.3 billion

• • Board recommended a final dividend for 2021 of US$0.1733 per share, pending approval at the AGM to be held on 9 June 2022. The final dividend will be payable to Shareholders registered at the close of business on the record date, being 17 June 2022, bringing the total dividend for the financial year 2021 to US$0.28311 per share

Capitalised terms used but not defined in this annual report are found in pages 147 to 149.

Due to rounding, numbers presented throughout this annual report may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

1

Includes interim dividend of US$0.1098 per share paid to Shareholders registered at the close of business on 4 October 2021.

BOC AVIATION LIMITED ANNUAL REPORT 2021

FINANCIAL HIGHLIGHTS

EXHIBIT 1: FINANCIAL HIGHLIGHTS

2021	2020	Change1
US$m	US$m	%
Statement of Profit or Loss
Revenues and other income	2,183	2,054	6.3
Costs and expenses	(1,545)	(1,491)	3.6
Profit before income tax	639	563	13.4
Net profit after income tax	561	510	10.1
Earnings per share (US$)2	0.81	0.73	10.1
As at	As at
31 December	31 December	Change1
2021	2020
US$m	US$m	%
Statement of Financial Position
Cash and short-term deposits3	486	408	19.3
Total current assets	673	656	2.6
Total non-current assets	23,207	22,913	1.3
Total assets	23,879	23,568	1.3
Total current liabilities	2,206	2,157	2.2
Total non-current liabilities	16,408	16,634	(1.4)
Total liabilities	18,613	18,792	(0.9)
Net assets	5,266	4,777	10.2
Financial Ratios
Net assets per share (US$)4	7.59	6.88	10.2
Gross debt to equity (times)5	3.2	3.5
Net debt to equity (times)6	3.1	3.4

1 2

Percentage change is calculated based on numbers in US$ thousands as shown in the financial statements.

3

Earnings per share is calculated by dividing net profit after tax by total number of shares outstanding at 31 December 2021 and 31 December 2020. Number of shares outstanding at 31 December 2021 and 31 December 2020 was 694,010,334. Includes encumbered cash and bank balances of US$1.2 million as at 31 December 2021 and less than US$1,000 at 31 December 2020.

4

Net assets per share is calculated by dividing net assets by total number of shares outstanding at 31 December 2021 and 31 December 2020.

5

6

Gross debt to equity is calculated by dividing gross debt by total equity at 31 December 2021 and 31 December 2020. Net debt is defined as gross debt less cash and short-term deposits. Net debt to equity is calculated by dividing net debt by total equity.