BOC Aviation (2588) Morgan Stanley 23rd Annual Asia Pacific Summit 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 $908 million, a new milestone.

• Gains on aircraft sales in 1H 2024 were above the long-run average, supporting business value.

Asset base, fleet, and investment strategy

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

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

• Order book stands at 231 aircraft, with $12 billion in committed capex.

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

• Aircraft assets rose 8% year-on-year, with steady growth in total assets to $24.3 billion.

Liquidity, funding, and capital structure

• Maintained 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.

• Long-term unsecured debt and diverse funding channels support flexibility.

• Gross debt to equity improved to 2.7x, with total equity exceeding $6 billion for the first time.

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