Tokyo Century (8439 ) Investor presentation summary

Company overview and industry context

• Headquartered in Newport Beach, CA, with $12.1B in assets and a fleet of 496 aircraft as of December 2024.

• Investment grade ratings: Baa2 (Moody's) and BBB- (S&P Global).

• Serves about 85 airline customers across 45 countries, with a diversified global presence.

• Aircraft leasing market is growing, with lessors increasing their share and resilient airline profitability post-pandemic.

• Narrowbody aircraft dominate the portfolio, aligning with high-demand market segments.

Strategic advantages and portfolio

• Focus on new technology aircraft, with investments via OEM, sale-leaseback, secondary market, and M&A.

• 97% of fleet by count is narrowbody, with an average fleet age of 6.2 years.

• Long-term committed cash flows, with $6.3B in lease rentals and a 6.7-year weighted average lease term.

• Contracted growth through $9.7B in future aircraft commitments, including significant OEM and sale-leaseback deals.

• Investment grade issuer with conservative leverage (2.1x net debt to equity) and robust liquidity.

Financial performance and funding

• Record 2024 revenues of $1.24B and a 28% YoY increase in pre-tax net income.

• Reduced debt by ~$1B YoY, with leverage down to 2.1x.

• $2.9B raised globally in 2024, including a $600M bond at a lower coupon and a $550M sustainability-linked loan.

• Strong asset coverage (1.6x unencumbered assets to unsecured debt) and 93% of debt at fixed rates.

• Diminishing volume of higher-cost debt over time, with a focus on unsecured funding.