BOC Aviation (2588) Daiwa Investment Conference Hong Kong 2024 Presentation summary

Financial performance and profitability

• Achieved record net profit after tax of $460 million in 1H 2024, up 76% year-on-year.

• Total revenues rose 11% to $1.17 billion in 1H 2024.

• Interim dividend per share increased 76% to $0.1988.

• Operating cash flow net of interest reached a record $908 million in 1H 2024.

• Gains on aircraft sales in 1H 2024 were above the long-run average, with a 14% margin.

Asset base, fleet, and orderbook

• Fleet comprises 693 aircraft owned, managed, and on order, with an average age of 5.0 years.

• Orderbook stands at 231 aircraft, all latest technology models.

• 79% of the existing fleet is latest technology aircraft by net book value.

• Delivered 25 new aircraft and signed 90 lease commitments in 9M 2024.

• Aircraft assets rose 8% year-on-year, with total assets at $24.3 billion.

Liquidity, funding, and capital structure

• Total liquidity of $5.5 billion as of June 2024.

• Issued $500 million of 7-year bonds at a 4.65% coupon in August 2024.

• Maintains a gross debt-to-equity ratio of 2.7x and total equity above $6 billion.

• Utilized diverse funding channels, with $5.5 billion in committed liquidity and $4.9 billion undrawn credit.

• May 2024 bond issuance featured the tightest pricing among lessors since 2005.