Morgan Stanley

Twenty-Third Annual Asia Pacific Summit

SINGAPORE

NOVEMBER 2024

Developments in 2024 YTD

STRONG ASSET

QUALITY

  • 693 aircraft owned, managed and on order
  • 5.0 years1 average fleet age; 7.8 years1 average remaining lease term
  • 99% aircraft utilisation rate

• Total liquidity of US$5.5 billion2

• Issued US$500 million of 7Y bonds in August at a coupon of 4.650% per annum

ROBUST

• Helps to fund target capex and maturing

liabilities

LIQUIDITY

• Well positioned to support future investment

•

Delivered seven new aircraft in 3Q, 25 in 9M

2024

• Signed 35 lease commitments in 3Q, 90 in 9M

PROACTIVE

2024

•

Committed to acquire 19 aircraft in 3Q, 33 in

INVESTMENT

9M 2024

STRATEGY

•

Closed September 2024 with an order book of

231 aircraft

A

•

A- by S&P Global Ratings

STRONG CREDIT

•

A- by Fitch Ratings

RATINGS

• Delivered all three Boeing 747 freighter aircraft to Atlas Air that were previously recovered from Russia

EXPERIENCED

MANAGEMENT AND

OWNERSHIP

• Experienced

management

team

successfully

managed through

multiple

cycles

  • Bank of China provides ongoing support

Long-term sustainable growth

All data as at 30 September 2024 unless otherwise indicated

Notes:

1. Weighted by net book value of owned fleet including finance lease receivables in respect of aircraft classified as finance leases in accordance with IFRS 16 (Leases)

2. As at 30 June 2024

2

A Record 1H 2024

Total revenues and other income

Profit before tax

Net profit after tax

Earnings per share (US$)

1H 2024

US$ million

1,174

509

460

0.66

1H 2023

US$ million

1,061

295

262

0.38

Change

11%

72%

76%

76%

Strong growth across all major line items

3

Strong Improvement in Net Profit After Tax

US$ million

+9%

176

460

262

284

Core net profit after tax1

Core net profit after tax 1

Asset recovery

Reported net profit after

(net of tax)

tax

1H 2023

1H 2024

Robust growth in core business and continued success in Russia-related recoveries

Note:

1. Excludes the impact of write-downs and recoveries related to aircraft in Russia.

4

Record Interim Dividend

US$

0.1988

0.13880.1398

0.1284

0.1038

0.1098

0.1131

0.0889

0.061

1H

2016

2017

2018

2019

2020

2021

2022

2023

2024

2024 interim dividend per share of US$0.1988, 76% higher than 2023

5

Strong Balance Sheet and Liquidity

30 Jun 2024

Total assets (US$ billion)

24.3

Total liquidity (US$ billion)

5.5

Total equity (US$ billion)

6.1

Net assets per share (US$)

8.73

Gross debt to equity (times)

2.7

31 Dec 2023

Change

24.2

Stable

5.6

Stable

5.7

5%

8.285%

2.9

0.2x

Total equity exceeded US$6 billion for the first time in the Company's history

6

How We Invest

Global

Financial

Crisis

Number of aircraft delivered, purchased and sold

European

Opportunistic PLB

Crisis

acquisitions in the

down cycle

Covid-19

19

41

45

24

13

(3)

9

16

14

41

22

45

27

16

7

4

6

12

41

22

17

14

31

18

21

43

29

4

5

58

61

17

6

5

41

44

48

50

5

12

31

16

27

22

22

23

21

14

17

17

11

10

(7)

(3)

(10)

(8)

(4)

(19)

(11)

(11)

(14)

(21)

(5)

(2)

(2)

(27)

(26)

(30)

(32)

(28)

(2)

(23)

(11)

(2)

(40)

(8)

(1)

(7)

(6)

(3)

(12)

(22)

(7)

(13)

Low liquidity

Low liquidity

High liquidity

Low liquidity

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sep-24

From orderbook

From PLB - OL

From PLB - FL

Owned aircraft sold to investors (excluding airlines)

Owned aircraft sold to airlines only (including aircraft acquired by lessee at delivery)

Strong orderbook of 231 aircraft

7

100% of Orderbook Comprises Latest Technology Aircraft

Our aircraft portfolio

Aircraft type

Owned aircraft

Managed aircraft

Aircraft on order

Total

Airbus A220 family

23

0

0

23

Airbus A320CEO family

70

13

0

83

Airbus A320NEO family

133

0

137

270

Airbus A330CEO family

8

1

0

9

Airbus A330NEO family

6

0

0

6

Airbus A350 family

9

0

0

9

Boeing 737NG family

57

13

0

70

Boeing 737-8/9

65

0

86

151

Boeing 777-300ER

27

3

0

30

Boeing 787 family

27

1

8

36

Freighters

5

1

0

6

Total

430

32

231

693

79% of existing fleet is latest technology aircraft1

All data as at 30 September 2024 unless otherwise indicated

Note:

1. Based on net book value and including aircraft subject to finance leases as at 30 June 2024

8

Higher Gains on Aircraft Sales Create Additional Business Value

Average appraised values > aircraft NBV

Covid

14%

8%

5%

2%

-1%

Jun 22

Dec 22

Jun 23

Dec 23

Jun 24

Gains on aircraft sales margin

14%

11%

5%

2022

2023

1H 2024

Gains on sale are above long-run average of 9%

9

Investing For The Future

Orderbook delivery schedule1

Number of aircraft

168

47

41

22

25

41

2024

2025

2026 and beyond

Delivered in 9M 2024

Expected to be delivered

Total committed capex of US$12 billion

US$ billion

4.0

8.6

1.9

0.81.4

2024

2025

2026 and beyond

Capex during 1H 2024

Committed capex

Target capex

Our robust orderbook is the catalyst for growth

All data as at 30 June 2024 unless otherwise indicated

Note:

1. Based on expected delivery dates as at 30 September 2024, subject to changes

10

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BOC Aviation Ltd. published this content on November 28, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 28, 2024 at 06:47:10.764.