Avation (AVAP) Investor presentation summary

Strategic positioning and market environment

• Aircraft supply-demand imbalance and manufacturing delays are driving strong demand for leased aircraft, with global fleet age at a record high and airlines extending asset lifespans.

• Avation holds one of the largest ATR 72 orderbooks among lessors, with 13 firm orders and 19 purchase rights, positioning it for significant fleet growth through 2034.

• The company is one of only four listed pure-play aircraft lessors globally, benefiting from scarcity and attractive valuations.

• Strong presence in the high-growth Asia Pacific region, with 17 airline customers across 17 countries.

Financial performance and capital management

• Total asset value stands at $993 million, with $321 million in unearned contracted revenues and a net asset value per share of $3.70 as of HY2026.

• Lease yield reached 11.5%, the highest among peers, and the company maintains robust operating profit and stable cash flow.

• Net debt/EBITDA improved to 5.1x, and credit ratings were upgraded to Moody's B1, Fitch B, and S&P B.

• $298 million bond was redeemed and replaced with a new $300 million unsecured bond maturing in 2031, extending debt maturity.

• Share buybacks reduced outstanding shares by 22% since FY24, with $31.9 million spent on repurchases.

Growth strategy and operational highlights

• Fleet growth targeted through new deliveries and secondary market acquisitions, with opportunistic sales of older aircraft to reinvest in newer assets.

• Five aircraft transitioned and two new aircraft delivered to new customers in FY2026; further transitions and deliveries planned for FY2027.

• Lease terms extended, with new ATRs typically placed on 10- or 12-year leases and existing leases renewed with major customers.

• Diversification efforts include adding new customers and expanding into new markets, reducing concentration risk.

• Proven track record of rapid credit recovery post-pandemic, with stable EBITDA margins and strong monetization history.