Avation (AVAP) Corporate presentation summary

Strategic positioning and market environment

• Aircraft supply-demand imbalance and manufacturing delays are driving strong demand for leased aircraft, especially in Asia Pacific and the Middle East, with global fleet growth expected through 2044.

• Avation holds the largest ATR 72 orderbook among lessors, with 13 firm orders and 19 purchase rights, positioning it to capitalize on a major turboprop replacement cycle.

• Diversified customer base spans 17 airlines in 17 countries, reducing risk and supporting stable cash flows.

• Lease terms are typically long (average 4.1 years remaining), and lease yields are among the highest in the peer group.

• Market values for key aircraft types remain robust due to high demand and supply constraints.

Financial performance and capital management

• Revenue and operating profit grew in HY2026 despite asset disposals, with total revenue at $56.0m and operating profit at $29.3m.

• Net asset value per share increased to $3.70, and lease yield reached 11.5%.

• Net indebtedness decreased to $542.7m, with improved credit ratings (Moody's B1, Fitch B, S&P B).

• Bond maturity extended to 2031, enhancing liquidity and financial flexibility.

• Share buybacks reduced outstanding shares by 21% since FY24, supporting shareholder returns.

Growth strategy and operational highlights

• Fleet growth targeted through new deliveries and secondary market acquisitions, with five aircraft transitioned and two new deliveries in FY2026.

• Opportunistic asset sales and lease extensions optimize portfolio value and cash flow.

• Strong track record of monetization, with 45 aircraft sold for over $1.2 billion since inception.

• Focus on de-risking through customer diversification and extending lease terms.

• Proactive management of portfolio health amid rising airline operating costs and regional uncertainties.