presentation for shareholders presentation q4 2015.pdf · presentation for shareholders ... * the...

PRESENTATION FOR SHAREHOLDERS

APRIL 2016

Q4 2015

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

CASH FLOW SUMMARY

WHY AIRLINES CHOOSE LEASING COMPANIES TO FINANCE AIRCRAFT?


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9

10

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BALANCE SHEET SUMMARY

DEALS 2014-2015

14

A Warsaw Stock Exchange listed global aviation holding

company engaged in commercial aircraft

acquisition, leasing and sales

Actively operating in global aviation market

Good prospects for growth and strengthening

position in the market

High yield on aircraft portfolio

Strong balance sheet Member of ISTAT

Global presence, choice of aircraft

register

Specializes in mainline narrow-body aircraft

as well as high-potential regional jets

AVIAAM LEASING AT A GLANCE


• Fleet structuring • Aircraft registration services • Aircraft repossessions • Maintenance analysis

• Net operating (dry) or financial leases

• Short-term: up to 3 yrs • Long-term: 3 yrs and

above

• Operating Engine leasing • Engine sale & lease back • Guaranteed spare engine

availability • Engine exchanges

• Aircraft purchases, customization and sales

• Aircraft remarketing for lease or sale

• Identification of acquisition and lease prospects

• Market analysis

• Technical management • Contract management • Financial engineering • Asset value protection

AIRCRAFT LEASING AIRCRAFT TRADING CONSULTING SERVICES ASSET MANAGEMENT ENGINE LEASING

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

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

ROMUALDAS LEGETAVICUS Technical Director at AviaAM Leasing 16 years of experience with technical

background

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

TADAS GOBERIS CEO, AviaAM Leasing

Chairman of the Board, AviaAM Leasing 15 years of experience as an executive

with sales 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

JUSTINAS GILYS COO, AviaAM Leasing

Board Member, AviaAM Leasing 12 years of experience in finance

Expert in deal structuring and management of lease agreements

PAULIUS DOCKA Chief Legal Officer, Avia Solutions Group

Board Member, AviaAM Leasing 15 years of experience of legal practice

Expert in contract management and deal structuring Awarded by a UK based Chambers and Partners as a recommended lawyer


4.7 5.1

120.7

32.1

0

20

40

60

80

100

120

140

Q4 2014 Q4 2015 I-XII 2014 I-XII 2015

0.9

4.0

22.3

12.0

0

5

10

15

20

25

Q4 2014 Q4 2015 I-XII 2014 I-XII 2015

REVENUES (USDm)

NET PROFIT (USDm) CASH AND CASH EQUIVALENTS (USDm)

FINANCIAL PERFORMANCE OVERVIEW

NET ASSETS AND SHARE CAPITAL RATIO (USDm)


36.6

27.1

0

5

10

15

20

25

30

35

40

31 December 2014 31 December 2015

93.1

108.2 5.5

6.4

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140

31 December 2014 31 December 2015

Net assets Net assets / Share Capital ratio

3.3 3.6 3.4 3.5

1.4 1.6 1.9 1.6

2.3 3.1

6.3

0,0

0

2

4

6

8

10

12

14

16

Q1 2015 Q2 2015 Q3 2015 Q4 2015

Commission income

Sales of aircraft

Supplemental maintenance rent

Lease revenue

100%

9%

15% 24%

-100%

-5%

100% -100%

2%

-16%

0%

-33%

13.8

5.4 5.1

REVENUE I-XII 2014 vs. I-XII 2015 (USDm)

REVENUE OVERVIEW REVENUE SPLIT – QUARTERS COMPARISON (USDM)


7.8

REVENUE OVERVIEW


REVENUE 2014 vs. 2015 (USDm)

REVENUES, OPERATING PROFIT AND NET PROFIT COMPARISON WITH PRIOR YEARS (USDm)

120.7

32.1

0.7

1.8

(2.3)

(88.9)

0

20

40

60

80

100

120

140

Revenue I-XII 2014 Lease revenue

Supplemental maintenance

rent

Sales of aircraft

Commission income

Revenue I-XII 2015

176

121

32 34 28 16

28 22 12

16% 18%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

50

100

150

200

I-XII 2013 I-XII 2014 I-XII 2015

Revenues (USDm) Operating profit (USDm) Net profit (USDm) Profit margin (%)

EBITDA

*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


EBITDA Q3 2015 vs. Q4 2015 (USDm)

EBITDA I-XII 2014 vs. I-XII 2015 (USDm)

3.19 4.88

0.42

5.51 0.57 0.07 0.02

(0.24)

(4.65)

0

2

4

6

8

10

12

EBITDA Q3 2015 Revenue from aircraft leases

Gain on sales of aircraft*

Net commission income**

Other income*** Employee-related expenses

Aircraft maintenance

expenses

Other expenses****

EBITDA Q4 2015

34.46

19.45

3.30

1.79 0.15

(1.61)

(9.88) (5.25) (2.63) (0.88)

0

5

10

15

20

25

30

35

40

EBITDA I-XII 2014 Gain on sales of aircraft* Gain on sale of subsidiaries Aircraft maintenance expenses Other expenses****

31 December 2014

5.9

2.8

52% 20%

DEBT

Total debt 11.4 13.6

Cash 27.1 36.6

Net debt (15.7) (23.0)

Ratios

Debt/assets 0.08 0.11

Net debt/Equity (0.14) (0.25)

Weighted average interest rate 6.51% 7.67%

% of total debt

% of total debt


DEBT MATURING IN LESS THAN 1 YEAR (USDm)

DEBT MATURING BETWEEN 1 AND 5 YEAR (USDm)

31 December 2015

5.5

10.8

48% 80%

AIRCRAFT TRADING AIRCRAFT LEASING TRANSACTION MANAGEMENT

AIRCRAFT TRADING

Acquisition and sale:

1 x Boeing 737-322

AIRCRAFT LEASING

Acquisition and lease:

2 x Airbus A319

TRANSACTION MANAGEMENT

Provision of aircraft transaction management services:

3 x Boeing B777-300ER

Major transactions accomplished in 2014 - 2015:

2014

2015


DEALS 2014-2015

Acquisition and sale (including brokerage):

3 x Boeing 737-800

1 x Boeing 737-700

1 x Boeing 767-300

New leases:

1 x Boeing 737-300

1 x Boeing 737-500

Sale from existing fleet:

4 x Boeing 737-500

1 x Boeing 737-300

Provision of aircraft transaction management services:

6 x Airbus A320

FLEET DISTRIBUTION

* The business jets are operated by KlasJet (subsidiary of Avia Solutions Group)

8 x CRJ200LR 2 x CRJ200LR Business Jets Inc. 1 business jet owned by a joint venture

1 x Boeing 737-300 3 x Boeing 737-500 2 x Airbus A319

FLEET OVERVIEW

Domicile country of the

lessee

Country of aircraft registration

Aircraft type Number of aircraft on

lease

Russia

Bermuda CRJ200 8

Russia B737-500 2

Bermuda Airbus A319 2

Kazakhstan Lithuania B737-500 1

Belarus Belarus B737-300 1

Lithuania Lithuania CRJ200 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

NET BOOK VALUE OF AIRCRAFT AND AIRCRAFT UNDER PREPARATION FOR USE (USDm)

AIRCRAFT TRANSACTIONS SUMMARY 31 March 2014 – 31 December 2015

31 March 2014

Ʃ 18***

30 June 2014

Ʃ 12***

30 September 2014

Ʃ 12***

* These aircraft were owned by AviaAM B03 UAB - the previous subsidiary of AviaAM Leasing AB which was sold on 30 April 2014 ** The acquisition and sale of one Boeing 737-800 aircraft was structured as a brokerage transaction *** Excluding one Bombardier CRJ200, owned by a joint venture

31 December 2014

Ʃ 13***


AIRCRAFT FLEET

Bombardier CRJ200

Boeing 737-500

Boeing 737-300

Boeing 737-700

Boeing 737-800

Boeing 767-300

+1**

8

7

2

1

0

0

+1

+1

-4*

-1*

-1

-1

-1

-1**

8

3

1

0

0

0

+1 -1

8

3

1

0

0

0

+1 9

3

1

0

0

0

Ʃ 15***

31 December 2015

9

3

1

0

0

0

Airbus A319 0 0 0 0 2 +2

39.0 64.0

21.3 11.2

(1.4) (4.3) (1.8)

0

20

40

60

80

Opening 1 January 2015 Additions Reclassifications Depreciation charge Revaluation surplus Revaluation loss Closing 31 December 2015

P&L SUMMARY

P&L (USD '000) Q4 2015 Q4 2014 I-XII 2015 I-XII 2014

Revenue 5,148 4,748 32,099 120,724

Interest income on loans 417 593 1,694 2,773

Depreciation and amortisation (932) (1,200) (4,253) (4,764)

Costs of aircraft sold (91) (32) (2,788) (86,136)

Costs of services rendered (200) (1,701) (6,235) (6,979)

Aircraft maintenance and servicing expenses (651) 1,572 (2,982) (4,770)

Revaluation of aircraft 59 (1,390) 59 (1,390)

Revaluation of investment property 403 - 403 -

Employee-related expenses (105) (193) (650) (800)

Impairment of receivables and prepayments 260 (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 28,308

EBITDA 4,883 3,637 19,450 34,462

Profit (loss) before income tax 3,807 1,171 13,148 25,327

Profit (loss) for the period 3,987 867 11,959 22,284


BALANCE SHEET SUMMARY

Balance sheet (USD '000) 31 December 2015 31 December 2014

Total assets, of which: 134,629 118,690

Non-current assets 76,372 50,766

Current assets 58,257 67,924

Equity 108,184 93,054

Non-current liabilities, of which: 12,187 15,467

Borrowings 5,480 10,782

Security deposits received 4,650 3,332

Deferred income tax liabilities 2,057 1,353

Current liabilities, of which: 14,258 10,169

Borrowings 5,927 2,768

Trade and other payables 3,658 2,488

Security deposits received 520 40

Advances received 159 70

Current income tax liabilities 3,994 4,803

Total equity and liabilities: 134,629 118,690


130 131 120 119 121 118 119 135

-53 -43 -27 -26 -26 -23 -22 -26

77 88 93 93 95 95 97 109

-70 -50 -30 -10 10 30 50 70 90

110 130 150

31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 30 Sep 2015 31 Dec 2015

Assets Liabilities Net assets

CASH FLOW SUMMARY

Cash flow (USD '000) Q4 2015 Q4 2014 I-XII 2015 I-XII 2014

Net cash generated from operating activities 25,860 2,276 36,912 15,788

Net cash generated from (used in) investing activities (41,038) (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) (3,008) (9,481) (7,379)

Cash at the end of the period 27,093 36,574 27,093 36,574


CASH BALANCE 2014 vs. 2015 (USDm)

36.6 27.1

36.9

(42.7) (3.7)

0

10

20

30

40

50

60

70

80

Cash at the end of 2014 Net cash generated from operating activities

Net cash used in investing activities

Net cash used in financing activities

Cash at the end of 2015

WHY AIRLINES CHOOSE LEASING COMPANIES TO FINANCE AIRCRAFT?

0,5% 17

leased

1,7% 100

leased

14,7% 1343

leased

24,7% 3715

leased

40,7% 8440

leased

Over 50% 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)

OVER HALF OF WORLD AIRLINE FLEET NOW LEASED Operating leases: 1970 to 2012

1970 3722 Aircraft

1980 6037 Aircraft

1990 9160 Aircraft

2000 15032 Aircraft

2014 20726 Aircraft

2020 forecast


Smolensko st. 10, LT-03201 Vilnius Lithuania

www.aviaam.com E. [email protected] T. +370 5 252 55 25

AviaAM Leasing AB

CONTACT US


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