SES Power to Fly Now. ICBE Innovate, Grow, Succeed. 21 April 2016

Transcription

1 SES Power to Fly Now ICBE Innovate, Grow, Succeed 21 April 2016 SES is a wholly-owned subsidiary of CFM International. CFM is a 50/50 joint company between Snecma (Safran) and GE. The information in this document is SES Proprietary Information and is disclosed in confidence. It is the property of SES and its parent companies, and shall not be used, disclosed to others or reproduced without the express written consent of SES. If consent is given for reproduction in whole or in part, this notice shall appear in any such reproduction in whole or in part. The information contained in this document may also be controlled by the U.S. and French export control laws. Unauthorized export or re-export is prohibited.

2 Index 1. Who we are 2. Our Customers 3. Our Products & Services 4. Market Landscape 5. Lessons for Success 2 SES Proprietary Information subject to restrictions on the cover

3 Shannon Engine Support (SES) Wholly-owned subsidiary of CFM Inc. 50% 50% Specialist CFM engine lessor 100% CFM fleet Support OEM product support pool, services campaigns Commercial leasing business ROI from portfolio Specialist leasing team commercial, technical, finance, risk, legal 38 Staff 3 SES Proprietary Information subject to restrictions on the cover

4 The SES Story SES established (CFM/GPA JV) SES established (Snecma/GECAS JV) th CFM56 Engine in China SES 200 th engine delivered into pool First CFM56 7B engine delivered into pool First CFM56 5B engine delivered into pool First LEAP Order 2016 SES 25 th years in business First LEAP Delivers 4 SES Proprietary Information subject to restrictions on the cover

5 Pool Locations, Offices, Subsidiaries BEIJING Florida SHANGHAI BRUSSELS DUSSELDORF LONDON FRANKFURT PARIS GUANGZHOU HONG KONG 9 Pool locations 5 Offices Shannon (Head Office), Budapest, Singapore, Beijing, Brussels 5 Subsidiaries US*, Belgium*, Hungary**, Singapore**, China**, * Leasing, ** Marketing & Services to Ireland 5 SES Proprietary Information subject to restrictions on the cover

6 Understand the Customer - Why Lease Engines? Spare Engine Investment Decision Acquisition costs Underused assets Overhead costs AOG Unscheduled removals Cost vs Risk... a Constant Balancing Act 6 SES Proprietary Information subject to restrictions on the cover

7 What Airlines Want? Concentrate on core business Outsource non core activities Subcontract to a reliable service provider Spare Engines only when needed with guarantee of: engine quality, suitability, serviceability, documentation, no missing parts, configuration. Cost efficient solutions, maximum flexibility term, redelivery, etc Expert (technical) Engine Lessors 7 SES Proprietary Information subject to restrictions on the cover

8 Why Lease Engines? Provides operational solutions to Airlines of all sizes Asset management type service Fleet planning and exit strategies Provides financial services/solutions to Airlines of all sizes Cash preservation/capital efficiency Preserve borrowing capacity Residual Value/Risk Management Increasing reliability of new CFM engine types Why invest in an under-used asset? Shorter Product Life Cycles Introduction of new engine technology Residual Value assessment is a key risk 8 SES Proprietary Information subject to restrictions on the cover

9 Match our Product & Service to needs Engine Lease Support Programmes Customized Solutions Operating lease: 3-10 years Long term Ad-hoc lease: 1-3 years Short term Ad-hoc lease: < 1 year Guaranteed Access within 24 hours (GAF) Tailored to specific airline needs (term and volume) Optimised combination of SES products Dedicated Engines on site Pool Days GAF 9 SES Proprietary Information subject to restrictions on the cover

10 The Competitive Landscape Traditional Lessors Acquire assets and compete at outset of a new engine type in service Mature Asset Specialists Acquire assets later in the product cycle e.g. through aircraft tear downs MROs (Maintenance Repair Organisations) Acquire assets to support shop visit activity but may also try to generate revenue from leasing activity Increasingly competitive, price-driven market as technology matures and more investors enter the space. The CFM market is the largest and most open market for leasing, trading and MRO activity. 10 SES Proprietary Information subject to restrictions on the cover

11 Lessons for Success - Differentiating ourselves Product specialisation One Engine Type so customers benefit from in depth CFM56 expertise/knowledge Engine Pooling/Guaranteed Availability of Spares Short-Term Leases Service delivery: Flexibility speed of contract turnaround; duration of lease; extension periods; ease of extension; defined redelivery requirements Efficient delivery to customer, dedicated customer support, on-going communication throughout lease and immediately prior to redelivery Transparency no transaction fee; no minimum usage fee; flexible lease terms on short term leases SES works closely with customers to ensure we have sufficient numbers of engines in each pool location in the correct configuration 11 SES Proprietary Information subject to restrictions on the cover

12 Lessons for Success Organisational structure and Leadership intent Shareholder buy in especially when the going gets tough Experienced team long tenure, expertise, invest in training Fast Decision making process Customer Focus outward looking, offerings evolve as the customer defines what they need Long Term strategic planning have roadmap and make adjustments as circumstances change Constantly evaluate the competitive landscape 12 SES Proprietary Information subject to restrictions on the cover

13 SES Corporate & Organisation Chart Corporate Clearly defined Regular Board Meetings Monthly Advisory Committee Advisory Committee Board GE, Snecma, SES Managing Director Sales & Marketing Technical Finance Risk Contracts/legal HR Commercial Operations Executive Decision Making Process Decision Making Process; Matrix organisation Flat & fast deal team input Clear responsibilities Creative, accountable, responsible 6. Transaction Database Update 5. Binding Offer/ Contracts / Deal Completion 1. Sales Lead/ Initial Client Meeting/ Contact 4. Transaction Approval by Executive Team 2. Deal Team Review => Offer 3. Client Negotiation/ Acceptance 13 SES Proprietary Information subject to restrictions on the cover

14 THANK YOU Q & A 14 SES Proprietary Information subject to restrictions on the cover