BOC Aviation (2588) HSBC Credit Conference 2024 Presentation summary

Financial performance and profitability

• Achieved record net profit after tax of $764 million in 2023, a 3,708% increase from 2022, marking 30 years of unbroken profitability.

• Total revenues and other income reached $2,461 million in 2023, up 7% year-on-year.

• Core net profit after tax, excluding Russia-related impacts, was $547 million in 2023.

• Lease rental income accounted for 78% of total revenues, with high collection and utilization rates above 99%.

• Operating cash flow net of interest hit a record $1,643 million in 2023, supported by recoveries from Russian aircraft.

Asset base, fleet, and investment strategy

• Managed, owned, and on-order aircraft totaled 688 as of March 2024, with an average fleet age of 4.8 years and 7.9 years average remaining lease term.

• 77% of the existing fleet is comprised of latest technology aircraft, and the orderbook includes 229 aircraft.

• 2023 saw the largest fleet growth in company history, with proactive investments and opportunistic acquisitions during market cycles.

• Committed capex stands at $12 billion, the highest since IPO, with significant deliveries scheduled through 2026 and beyond.

• Aircraft supply remains tight due to production cuts, supporting asset values and lease demand.

Liquidity, funding, and capital structure

• Total available liquidity reached $5.6 billion at end-2023, with $1 billion raised in debt capital markets in 2024 at record low spreads.

• Issued $500 million of 5-year bonds in both January and May 2024, with the May issuance at the tightest spread in company history.

• Balance sheet remains robust, with total assets of $24.2 billion and total equity of $5.7 billion as of December 2023.

• Debt is well-distributed over the long term, with a flexible capital structure and a mix of loans and bonds.

• Long-term unsecured debt and strong support from Bank of China underpin financial stability.