PRESENTATION FOR SHAREHOLDERS Q4 215 APRIL 216
1 2 3 4 5 6 7 8 9 1 11 12 13 14 AVIAAM LEASING AT A GLANCE MORE THAN JUST A LEASING COMPANY EXPERIENCE AND EXPERTISE FINANCIAL PERFORMANCE OVERVIEW REVENUE OVERVIEW EBITDA DEBT DEALS 214-215 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) 14 12 1 12.7 14 12 1 93.1 5.5 6.4 18.2 7 6 5 8 8 4 6 6 3 4 32.1 4 2 2 4.7 5.1 Q4 214 Q4 215 I-XII 214 I-XII 215 2 31 December 214 31 December 215 1 Net assets Net assets / Share Capital ratio NET PROFIT (USDm) CASH AND CASH EQUIVALENTS (USDm) 25 2 22.3 4 35 3 36.6 27.1 15 1 12. 25 2 15 5.9 4. 1 5 Q4 214 Q4 215 I-XII 214 I-XII 215 31 December 214 31 December 215
REVENUE OVERVIEW REVENUE SPLIT QUARTERS COMPARISON (USDM) 16 14 12 1 8 6 4 2 13.8 1% -1% 6.3-33% 7.8 1% -1% % 5.4 5.1 3.1 2.3, 1.4 15% 24% 1.6 1.9-16% 1.6 3.3 9% 3.6-5% 3.4 2% 3.5 Q1 215 Q2 215 Q3 215 Q4 215 Commission income Sales of aircraft Supplemental maintenance rent Lease revenue REVENUE I-XII 214 vs. I-XII 215 (USDm)
REVENUE OVERVIEW REVENUE 214 vs. 215 (USDm) 14 12 1 (2.3).7 8 6 4 12.7 1.8 2 Revenue I-XII 214 Lease revenue Supplemental maintenance rent (88.9) Sales of aircraft Commission income 32.1 Revenue I-XII 215 REVENUES, OPERATING PROFIT AND NET PROFIT COMPARISON WITH PRIOR YEARS (USDm) 2 15 1 5 176 37% 121 16% 18% 34 28 28 32 22 16 12 I-XII 213 I-XII 214 I-XII 215 Revenues (USDm) Operating profit (USDm) Net profit (USDm) Profit margin (%) 4% 35% 3% 25% 2% 15% 1% 5% %
EBITDA EBITDA Q3 215 vs. Q4 215 (USDm) 12 1 5.51.57.7.2 8 6 4 2 3.19 EBITDA Q3 215 (.24) Revenue from aircraft leases.42 Gain on sales of aircraft* Net commission income** Other income*** Employee-related expenses Aircraft maintenance expenses (4.65) Other expenses**** 4.88 EBITDA Q4 215 EBITDA I-XII 214 vs. I-XII 215 (USDm) 4 35 3 25 2 15 1 5 (1.61) 3.3 1.79.15 34.46 (9.88) (5.25) (2.63) (.88) EBITDA I-XII 214 Gain on sales of aircraft* Gain on sale of subsidiaries Aircraft maintenance expenses Other expenses**** 19.45 *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 and revaluation of aircraft and investment property
DEBT DEBT MATURING IN LESS THAN 1 YEAR (USDm) 31 December 215 31 December 214 5.9 2.8 % of total debt 52% 2% DEBT MATURING BETWEEN 1 AND 5 YEAR (USDm) 1.8 5.5 % of total debt 48% 8% Total debt 11.4 13.6 Cash 27.1 36.6 Net debt (15.7) (23.) Ratios Debt/assets.8.11 Net debt/equity (.14) (.25) Weighted average interest rate 6.51% 7.67%
DEALS 214-215 Major transactions accomplished in 214-215: 214 AIRCRAFT TRADING AIRCRAFT LEASING TRANSACTION MANAGEMENT Acquisition and sale (including brokerage): 3 x Boeing 737-8 1 x Boeing 737-7 1 x Boeing 767-3 New leases: 1 x Boeing 737-3 1 x Boeing 737-5 Sale from existing fleet: 4 x Boeing 737-5 1 x Boeing 737-3 Provision of aircraft transaction management services: 6 x Airbus A32 AIRCRAFT TRADING 215 AIRCRAFT LEASING TRANSACTION MANAGEMENT Acquisition and sale: 1 x Boeing 737-322 Acquisition and lease: 2 x Airbus A319 Provision of aircraft transaction management services: 3 x Boeing B777-3ER
FLEET OVERVIEW 1 x Boeing 737-3 2 x Airbus A319 3 x Boeing 737-5 8 x CRJ2LR 2 x CRJ2LR Business Jets Inc. 1 business jet owned by a joint venture FLEET DISTRIBUTION Domicile country of the lessee Russia Country of aircraft registration Aircraft type Number of aircraft on lease Bermuda CRJ2 8 Russia B737-5 2 Bermuda Airbus A319 2 Kazakhstan Lithuania B737-5 1 Belarus Belarus B737-3 1 Lithuania Lithuania CRJ2 Business Jets 2* Total 16 COMMENTS 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 (13 out of 16) 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 * The business jets are operated by KlasJet (subsidiary of Avia Solutions Group)
AIRCRAFT FLEET AIRCRAFT TRANSACTIONS SUMMARY 31 March 214 31 December 215 31 March 214 3 June 214 3 September 214 31 December 214 31 December 215 Bombardier CRJ2 8 8 8 +1 9 9 Boeing 737-5 7-4* 3 3 3 3 Boeing 737-3 2-1* 1 1 1 1 Boeing 737-7 1-1 Boeing 737-8 +1-1 +1** -1** +1-1 Boeing 767-3 +1-1 Airbus A319 +2 2 Ʃ 18*** Ʃ 12*** Ʃ 12*** Ʃ 13*** Ʃ 15*** NET BOOK VALUE OF AIRCRAFT AND AIRCRAFT UNDER PREPARATION FOR USE (USDm) 8 6 4 2 21.3 11.2 (1.4) (4.3) (1.8) 64. 39. Opening 1 January 215 Additions Reclassifications Depreciation charge Revaluation surplus Revaluation loss Closing 31 December 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 ') Q4 215 Q4 214 I-XII 215 I-XII 214 Revenue 5,148 4,748 32,99 12,724 Interest income on loans 417 593 1,694 2,773 Depreciation and amortisation (932) (1,2) (4,253) (4,764) Costs of aircraft sold (91) (32) (2,788) (86,136) Costs of services rendered (2) (1,71) (6,235) (6,979) Aircraft maintenance and servicing expenses (651) 1,572 (2,982) (4,77) Revaluation of aircraft 59 (1,39) 59 (1,39) Revaluation of investment property 43-43 - Employee-related expenses (15) (193) (65) (8) Impairment of receivables and prepayments 26 (27) (752) (368) Other operating expenses (472) (625) (1,554) (1,782) Gain on sale of property, plant and equipment (net) - - - 4,377 Gain on sale of subsidiaries - - - 5,251 Other gain (losses) net 577 133 618 2,172 Operating profit 4,413 1,878 15,659 28,38 EBITDA 4,883 3,637 19,45 34,462 Profit (loss) before income tax 3,87 1,171 13,148 25,327 Profit (loss) for the period 3,987 867 11,959 22,284
BALANCE SHEET SUMMARY Balance sheet (USD ') 31 December 215 31 December 214 Total assets, of which: 134,629 118,69 Non-current assets 76,372 5,766 Current assets 58,257 67,924 Equity 18,184 93,54 Non-current liabilities, of which: 12,187 15,467 Borrowings 5,48 1,782 Security deposits received 4,65 3,332 Deferred income tax liabilities 2,57 1,353 Current liabilities, of which: 14,258 1,169 Borrowings 5,927 2,768 Trade and other payables 3,658 2,488 Security deposits received 52 4 Advances received 159 7 Current income tax liabilities 3,994 4,83 Total equity and liabilities: 134,629 118,69 15 13 11 9 7 5 3 1-1 -3-5 -7 13 131 135 12 119 121 118 119 19 77 88 93 93 95 95 97-27 -26-26 -23-22 -26-53 -43 31 Mar 214 3 Jun 214 3 Sep 214 31 Dec 214 31 Mar 215 3 Jun 215 3 Sep 215 31 Dec 215 Assets Liabilities Net assets
CASH FLOW SUMMARY Cash flow (USD ') Q4 215 Q4 214 I-XII 215 I-XII 214 Net cash generated from operating activities 25,86 2,276 36,912 15,788 Net cash generated from (used in) investing activities (41,38) (4,548) (42,666) (19,283) Net cash generated from (used in) financing activities (88) (736) (3,727) (3,884) Cash at the beginning of the period 42,359 39,582 36,574 43,953 Increase (decrease) in cash and cash equivalents (15,266) (3,8) (9,481) (7,379) Cash at the end of the period 27,93 36,574 27,93 36,574 CASH BALANCE 214 vs. 215 (USDm) 8 36.9 7 6 5 4 3 2 1 36.6 (42.7) (3.7) 27.1 Cash at the end of 214 Net cash generated from operating activities Net cash used in investing activities Net cash used in financing activities Cash at the end of 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