PRESENTATION FOR SHAREHOLDERS Q2 215 AUGUST 215
1 2 3 4 5 6 7 8 9 1 11 12 13 AVIAAM LEASING AT A GLANCE MORE THAN JUST A LEASING COMPANY EXPERIENCE AND EXPERTISE FINANCIAL PERFORMANCE OVERVIEW REVENUE OVERVIEW EBITDA DEBT FLEET OVERVIEW AIRCRAFT FLEET TRANSACTION AND VALUE PERSPECTIVE P&L SUMMARY BALANCE SHEET SUMMARY CASH FLOW SUMMARY WHY AIRLINES CHOOSE LEASING COMPANIES TO FINANCE AIRCRAFT?
AVIAAM LEASING AT A GLANCE A Warsaw Stock Exchange listed global aviation holding company engaged in commercial aircraft acquisition, leasing and sales Specializes in mainline narrow-body aircraft as well as high-potential regional jets Actively operating in global aviation market Global presence, choice of aircraft register Member of ISTAT Strong balance sheet High yield on aircraft portfolio Good prospects for growth and strengthening position in the market
MORE THAN JUST A LEASING COMPANY AviaAM Leasing is an integrated aviation company delivering a full range of aircraft leasing, trading and management services. We provide a complete set of customized services and products to address most distinctive and unique needs of our clients AIRCRAFT LEASING AIRCRAFT TRADING CONSULTING SERVICES ASSET MANAGEMENT ENGINE LEASING Net operating (dry) or financial leases Short-term: up to 3 yrs Long-term: 3 yrs and above Aircraft purchases, customization and sales Aircraft remarketing for lease or sale Identification of acquisition and lease prospects Market analysis Fleet structuring Aircraft registration services Aircraft repossessions Maintenance analysis Technical management Contract management Financial engineering Asset value protection Operating Engine leasing Engine sale & lease back Guaranteed spare engine availability Engine exchanges
EXPERIENCE AND EXPERTISE AviaAM Leasing team is composed of highly qualified and experienced aviation and business experts dedicated to highest quality of service and complete fulfillment of our clients and partners needs TADAS GOBERIS CEO, AviaAM Leasing Chairman of the Board, AviaAM Leasing 15 years of experience as an executive with sales background JUSTINAS GILYS COO, AviaAM Leasing Board Member, AviaAM Leasing 12 years of experience in finance PAULIUS DOCKA Chief Legal Officer, Avia Solutions Group Board Member, AviaAM Leasing 15 years of experience of legal practice ROMUALDAS LEGETAVICUS Technical Director at AviaAM Leasing 16 years of experience with technical background Tadas Goberis has obtained an exceptional level of experience in the sales and organization management in the IT industry achieving many rewards and recognitions for delivering outstanding results Expert in deal structuring and management of lease agreements Expert in contract management and deal structuring Awarded by a UK based Chambers and Partners as a recommended lawyer Romualdas Legetavicius completed a wide range of aviation training courses including but not limited to PART-145 training, Safety Oversight (at ICAO), PART-M, SAFA Ramp Check, JAR 21 Repairs and Modifications, Maintenance and Airworthiness etc
FINANCIAL PERFORMANCE OVERVIEW REVENUES (USDm) NET ASSETS AND SHARE CAPITAL RATIO (USDm) 8 7 6 5 4 3 2 1 66. 13.8 74.3 21.6 1 98 96 94 92 9 5.5 5.7 95.3 93.1 7 6 5 4 3 2 1 Q2 214 Q2 215 I-VI 214 I-VI 215 88 31 December 214 3 June 215 Net assets Net assets / Share Capital ratio NET PROFIT (USDm) CASH AND CASH EQUIVALENTS (USDm) 2 18 16 14 12 1 8 6 4 2 17.6 15.3 6.6 4.4 Q2 214 Q2 215 I-VI 214 I-VI 215 45 4 35 3 25 2 15 1 5 36.6 41. 31 December 214 3 June 215
REVENUE OVERVIEW REVENUE Q2 214 vs. Q2 215 (USDm) 22.3 REVENUE I-VI 214 vs. I-VI 215 (USDm)
REVENUE OVERVIEW REVENUE Q1 215 vs. Q2 215 (USDm) 16 14 12 1 8 6 4 2 7.8 Revenue Q1 215.3.2 Lease revenue Supplemental maintenance rent 2.3 Sales of aircraft 3.1 Commission income 13.8 Revenue Q2 215 REVENUES, OPERATING PROFIT AND NET PROFIT COMPARISON WITH PRIOR YEARS (USDm) 8 7 6 5 4 3 2 1 15 74 28% 31% 24% 21 18 22 8 4 9 I-VI 213 I-VI 214 I-VI 215 7 35% 3% 25% 2% 15% 1% 5% % Revenues (USDm) Operating profit (USDm) Net profit (USDm) Profit margin (%)
EBITDA EBITDA Q1 215 vs. Q2 215 (USDm) 8 7 6 5 4 3 2 1 5.7 EBITDA Q1 215.51.11 Revenue from aircraft leases Gain on sales of aircraft* 1.21 Net commission income** -.2 -.4 -.44 -.9 Other income*** Employee-related expenses Other expenses**** Aircraft maintenance expenses 6.31 EBITDA Q2 215 EBITDA I-VI 214 vs. I-VI 215 (USDm) 25 2 15 1 23.33-2.36-6.76.96 3.94.7.4 5-5.25-2.6 11.38 EBITDA I-VI 214 Revenue from aircraft leases Gain on sales of aircraft* Net commission income** Gain on sale of subsidiaries Other income*** Aircraft maintenance expenses Employee-related expenses Other expenses**** EBITDA I-VI 215 *Calculated as revenue from aircraft sales plus gain on sale of PPE less costs of aircraft sold **Calculated as commission income less costs of services rendered ***Calculated as sum of interest income on loans and other gain (losses) net ****Calculated as sum of other operating expenses and impairment of receivables and prepayments
DEBT DEBT MATURING IN LESS THAN 1 YEAR (USDm) 3 June 215 31 March 215 31 December 214 2.9 2.8 2.8 % of total debt 24% 22% 2% DEBT MATURING BETWEEN 1 AND 5 YEAR (USDm) 9.3 1.1 1.8 % of total debt 76% 78% 8% Total debt 12.2 12.9 13.6 Cash 41. 37.5 36.6 Net debt (28.8) (24.6) (23.) Ratios Debt/assets.1.11.11 Net debt/equity (.3) (.26) (.25) Weighted average interest rate 7.73% 7.7% 7.67%
FLEET OVERVIEW CURRENT FLEET 1 x Boeing 737-3 3 x Boeing 737-5 8 x CRJ2LR 2 x CRJ2LR Business Jets Inc. 1 business jet owned by a joint venture FLEET DISTRIBUTION COMMENTS Domicile country of the lessee Russia Country of aircraft registration Aircraft type * The business jets are operated by KlasJet (subsidiary of Avia Solutions Group) Number of aircraft on lease Bermuda CRJ2 8 Russia B737-5 2 Kazakhstan Lithuania B737-5 1 Belarus Belarus B737-3 1 Lithuania Lithuania CRJ2 Business Jets 2* Total 14 All aircraft are leased out under long term operating lease agreements All leases are secured by security deposits paid by lessees at the inception of leases The vast majority of the aircraft (11 out of 14) are registered in renowned aircraft registration jurisdictions Bermuda and Lithuania Successful risk and relationship management no overdue receivables from any of the lease customers Strict operating monitoring procedures of the financial position of the lessees and aircraft maintenance status
AIRCRAFT FLEET AIRCRAFT TRANSACTIONS SUMMARY 31 March 214 3 June 215 31 March 214 3 June 214 3 September 214 31 December 214 31 March 215 3 June 215 Bombardier CRJ2 8 8 8 +1 9 9 9 Boeing 737-5 7-4* 3 3 3 3 3 Boeing 737-3 2-1* 1 1 1 1 1 Boeing 737-7 1-1 Boeing 737-8 +1-1 +1** -1** +1-1 Boeing 767-3 +1-1 Ʃ 18*** Ʃ 12*** Ʃ 12*** Ʃ 13*** Ʃ 13*** Ʃ 13*** NET BOOK VALUE OF AIRCRAFT AND AIRCRAFT UNDER PREPARATION FOR USE (USDm) 6 4 2.6 39. -2. 37.5 Opening 1 January 215 Additions Depreciation charge Closing 3 June 215 * These aircraft were owned by AviaAM B3 UAB - the previous subsidiary of AviaAM Leasing AB which was sold on 3 April 214 ** The acquisition and sale of one Boeing 737-8 aircraft was structured as a brokerage transaction *** Excluding one Bombardier CRJ2, owned by a joint venture
P&L SUMMARY P&L (USD ') Q2 215 Q2 214 I-VI 215 I-VI 214 Revenue from aircraft leases 5,189 5,67 9,871 12,226 Gain on sales of aircraft* 111 6,867 111 6,867 Net commission income** 2,435 1,871 3,663 2,77 Gain on sale of subsidiaries - 5,251-5,251 Other income*** 436 2,91 889 3,49 Aircraft maintenance expenses (871) (3,132) (1,657) (5,599) Depreciation and amortization (1,62) (1,159) (2,13) (2,354) Employee-related expenses (26) (211) (371) (441) Other expenses**** (783) (62) (1,129) (1,174) Operating profit 5,249 17,465 9,364 2,973 EBITDA 6,311 18,624 11,377 23,327 Profit (loss) before income tax 5,268 16,785 7,68 19,466 Profit (loss) for the period 4,434 15,268 6,599 17,567 *Calculated as revenue from aircraft sales plus gain on sale of PPE less costs of aircraft sold **Calculated as commission income less costs of services rendered ***Calculated as sum of interest income on loans and other gain (losses) net ****Calculated as sum of other operating expenses, impairment of receivables and prepayments
BALANCE SHEET SUMMARY Balance sheet (USD ') 3 June 215 31 December 214 Total assets, of which: 118,127 118,69 Non-current assets 49,29 5,766 Current assets 68,918 67,924 Equity 95,277 93,54 Non-current liabilities, of which: 14,18 15,467 Borrowings 9,311 1,782 Security deposits received 3,457 3,332 Deferred income tax liabilities 1,25 1,353 Current liabilities, of which: 8,832 1,169 Borrowings 2,882 2,768 Trade and other payables 2,28 2,488 Security deposits received 4 4 Advances received - 7 Current income tax liabilities 3,72 4,83 Total equity and liabilities: 118,127 118,69 15 13 11 9 7 5 3 1-1 -3-5 -7 13 131 12 119 121 118 77 88 93 93 95 95-53 -43-27 -26-26 -23 31 Mar 214 3 Jun 214 3 Sep 214 31 Dec 214 31 Mar 215 3 Jun 215 Assets Liabilities Net assets
CASH FLOW SUMMARY Cash flow (USD ') Q2 215 Q2 214 I-VI 215 I-VI 214 Net cash generated from operating activities 6,649 15,357 8,859 12,834 Net cash generated from (used in) investing activities (861) 14,524 (1,53) (2,957) Net cash generated from (used in) financing activities (2,267) (1,747) (2,941) (2,496) Cash at the beginning of the period 37,468 23,2 36,574 43,953 Increase (decrease) in cash and cash equivalents 3,521 28,134 4,415 7,381 Cash at the end of the period 4,989 51,334 4,989 51,334 CASH BALANCE Q1 215 vs. Q2 215 (USDm) 5 45 4 35 3 25 2 15 1 5 37.5 Cash at the end of Q1 215 6.6 Net cash generated from operating activities -.9 Net cash used in investing activities -2.3 Net cash used in financing activities 41. Cash at the end of Q2 215
WHY AIRLINES CHOOSE LEASING COMPANIES TO FINANCE AIRCRAFT? OVER HALF OF WORLD AIRLINE FLEET NOW LEASED Operating leases: 197 to 212,5% 17 leased 1,7% 1 leased Greater financial flexibility Greater fleet flexibility Access to attractive delivery slots Availability of capital Avoid pre-delivery payments Zero residual value risk Growth in Low Cost Carriers (LCC's) 197 3722 Aircraft 198 637 Aircraft 14,7% 1343 leased 24,7% 3715 leased 4,7% 844 leased Over 5% leased 199 916 Aircraft 2 1532 Aircraft 214 2726 Aircraft 22 forecast
CONTACT US AviaAM Leasing AB Smolensko st. 1, LT-321 Vilnius Lithuania E. info@aviaam.com T. +37 5 252 55 25 www.aviaam.com