BBA Aviation

BBA Aviation

2018 Final Results

www.bbaaviation.com

BBA Aviation

2018 – Strategic progress

1. Outperforming today

- Signature continues to outperform the US B&GA market + 210bps

- Market share gains

2. Strong Free Cash Flow generation >$250m

3. Investment for tomorrow

- Commercial technology investments for 2019 deployment

- People and culture

- Acquisition and licence growth – EPIC, Firstmark and licences

2018 Final Results

Strong platform for sustainable growth

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BBA Aviation

www.bbaaviation.com

Performance Review

David Crook

Group Finance Director

BBA Aviation 2018 Final Results

2

BBA Aviation

Underlying total operating profit growth of 4%

Signature (85% of continuing OP1): - Signature FBO revenue outperforming a soft market by

210 bps

Ontic (15% of continuing OP1):- $6m contribution from new licence acquisitions and

Firstmark offsetting non repeat of cyclical military orders

- Strong order book and pipeline of licence opportunities

Discontinued operations- Strong performance at ERO with 45% increase in

operating profit- Suspension of depreciation and amortisation of $5.2m

included for the seven months from June 2018

Total basic adjusted EPS - down 2.9% to 23.3c

Dividend increased 5% to 14.07c per share

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

Operating profit1 ($m) 2018 2017 Change

Signature 320.6 329.4 (2.7)%

Ontic 59.3 55.2 7.4%

Middle East (ERO) (0.7) (2.4) 71%

Total continuing central costs (39.0) (45.7) 14.7%

Group continuing 340.2 336.5 1.1%

Discontinued 35.0 23.9 46.4%

Group total 375.2 360.4 4.1%

Total basic adjusted EPS 23.3 24.0 (2.9)%

Dividend per share 14.07c 13.40c 5.0%

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BBA Aviation

Signature: revenue up 29% (85% of continuing OP1)

Organic revenue growth of 2.7% (constant currency and fuel prices)- Signature FBO up 3.0%,

TECHNICAir down 3.4%- FAA US B&GA movements

growth of 0.9%

Organic operating profit decline of 2.9%- Impact of IT investments $14m- Challenging maintenance

market, TECHNICAir down $3.8m- Customer mix and bad debt

impacting FBO drop through

Investment returns- Divisional ROIC 11.8%

(FY 2017: 12.2%).

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

Operating Profit1 ($m)

1,643.0 6.0

138.2 1,787.2

292.5 -

50.5(2.6) -

2,127.6

2017 FX Fuel 2017 Like for Like

Acqui-sitions

FBO TECHNICAir 2018

329.4 0.8

-

330.2 2.9

(1.7)

7.0

(3.8)

(14.0)

320.6

2017 FX Fuel 2017 Like for Like

EPICTrade

EPICAcquis-

ition costs

FBO TECHNICAir IT 2018

Revenue Bridge ($m)

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BBA Aviation

Ontic: revenue up 3% (15% of continuing OP1)

- New licences and Firstmark contributed $12.3m of revenue

- Organic revenue decline of 3.7% due to non repeat of cyclical military orders

Operating profit1 up 7%- Includes $6.0m contribution from new Ontic licences- Organic operating profit down largely due to 2017

contribution from B52 parts and C130 radar units not repeated in 2018

- Underlying operating margin of 27.5%, up 110 bps

Investment returns- ROIC 15.6% (FY 2017: 16.8%)

Order book remains strong with good visibility through 2019 and beyond

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

Ontic Operating Profit1 ($m)

Ontic Revenue Bridge ($m)

208.8 2.7 211.5 12.3 (7.8)

216.0

2017 FX 2017 like for like

Acquisitions Organic 2018

55.2 0.9 56.1 6.0

(2.8)

59.3

2017 FX 2017like for like

Acquisitions Organic 2018

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BBA Aviation

Discontinued ERO: revenue up 4%

- Improved underlying operating profit $35.0m, up 45.2%

- Includes $5.2m benefit from suspension of depreciation and amortisation for the seven months from June 2018

- Excludes the $10.7m of support costs for ERO

Note 1: Underlying operating profit (pre exceptional and other items)

Revenue Bridge ($m)

Operating profit ($m) 2018 2017

ERO pre discontinued ops 18.4 10.1

Add back: Middle East loss 0.7 2.4

Add back: support costs 10.7 11.6

Add back: Depreciation & amortisation suspension 5.2 -

ERO discontinued ops 35.0 24.1

Operating Profit1 ($m)

2018 Final Results

513.3 1.8 515.1

18.5 533.6

2017 FX 2017 likefor like

Organic 2018

24.1 0.2 24.3

10.7 35.0

2017 FX 2017 likefor like

Organic 2018

Reconciliation of pre and post discontinued operations reporting

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BBA Aviation

Central costs

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

($m) 2018 2017 Change

Underlying central costs (28.3) (34.1) (17.0)%

ERO support costs (10.7) (11.6) (7.8)%

Total continuing central costs (39.0) (45.7) (14.7)%

- Underlying central costs down 17% to $28.3m

- Reduction reflects 2017 comparative impacted by

- One-time costs in our captive insurance company for hurricane damage

- Remaining ASIG support costs (now removed)

- Total central costs

- includes $10.7m of support costs relating to the discontinued ERO business

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BBA Aviation

Underlying Income Statement

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

($m) 2018 2017 Change

Total Group operating profit1 375.2 360.4 4.1%

Net interest (67.2) (62.1) 8.2%

Profit before tax 308.0 298.3 3.3%

Profit after tax 240.5 246.3 (2.4)%

Total basic adjusted EPS 23.3c 24.0c (2.9)%

Total dividend per share 14.07c 13.40c 5.0%

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BBA Aviation

Exceptional and other items - largely non-cash

2018 Final Results

Continuing- Amortisation of acquired intangibles: $88.8m

(non-cash)

- Restructuring expenses of $8.9m (corporate and closure of ERO in the Middle East)

- Previously noted impairment of $14.1m primarily relating to Sloulin Field FBO (non-cash)

- One-off past service pension cost with regard to GMP equalisation within the UK plan of $11.1m

Discontinued- ERO disposal process costs of $5.9m

- Completion costs of ERO footprint rationalisation in Dallas of $1.1m

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BBA Aviation

Continuing strong cash generation

Continuing businesses- Strong cash generative business

- Working capital inflow in Signature

- Capex investments at FBOs including Miami and Nashville

- Cash tax rate remains substantially lower than underlying effective tax rate

- Leverage 2.8x on a covenant basis

Discontinued business- Working capital outflow driven

largely by parts availability from OEMs

Note 1: Underlying operating profit before depreciation and amortisation

2018 Final Results

$m Continuing Discontinued 2018 2017

Underlying EBITDA pre support costs 428.4 38.7 467.1 459.5

ERO support costs (10.7) - (10.7) (11.6)

Underlying EBITDA1 417.7 38.7 456.4 447.9

Working capital movement 22.0 (48.2) (26.2) (46.3)

Capex (75.8) (16.1) (91.9) (80.3)

Net Interest paid (57.4) (0.9) (58.3) (57.3)

Tax paid (27.1) - (27.1) (41.8)

Exceptionals (12.5) (7.0) (19.5) (12.7)

Other items (8.3) (0.3) (8.6) 11.1

Free cash flow 258.6 (33.8) 224.8 220.6

Net debt (1,331.3) (0.9) (1,332.2) (1,167.1)

Net debt to EBITDA, covenant 2.8x 2.6x

Net debt to EBITDA, reported 2.9x 2.6x

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BBA Aviation

Guidance FY19

2018 Final Results

Note 1: Underlying operating profit (pre exceptional and other items)

Central costs- ~$27m Group central costs in FY19- ~$12m ERO annual support costs in FY19 - ERO support costs to be eliminated post disposal/TSA period

Capital expenditure (continuing group)- FY19 capex $115-125m

Tax- Underlying effective tax rate c21%, cash tax rate c14%

Interest (excl. IFRS 16)- Interest expense $75m - Cash interest $75m

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BBA Aviation

IFRS 16

2018 Final Results

IFRS 16 does not impact our

Strong free cash flows

Business prospects

Ability to deliver our strategy

Debt covenants

Progressive dividend policy

But it will significantly impact our published financial statements

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BBA Aviation

IFRS 16 – Impact on financials

2018 Final Results

Metric Increase/decrease No Impact

Free cash flow (FY 2019) - -

Revenue (FY 2019) - -

Metric Increase/decrease Impact

Operating profit (FY 2019) Increase c12%

EBITDA (FY 2019) Increase c30%

Interest (FY 2019) Increase c100%

Profit before tax (FY 2019) Decrease c10%

Adjusted EPS (FY 2019) Decrease c10%

Total assets (1 Jan 2019) Increase c25%

Total liabilities (1 Jan 2019) Increase c50%

Operating cashflow (FY 2019) Increase c35%

Net debt (1 Jan 2019) Increase c85%

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BBA Aviation

www.bbaaviation.com

BBA Aviation

Mark Johnstone

Group Chief Executive Officer

BBA Aviation 2018 Final Results

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BBA Aviation

BBA Aviation – Strong platform for sustainable growth

1

2

3

US B&GA market

Implementation of our growth strategy – Signature and Ontic

Outlook

2018 Final Results

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BBA Aviation

Signature Market Drivers

Macro Economic Drivers

Aircraft Utilisation

Macro Economic

Drivers

Operational Installed

Fleet

Corporate profits

R² = 0.773

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

- 500 1,000 1,500 2,000

Busin

ess j

et h

ours

flow

n (a

nnua

l, in

100

0s)

GDP

R² = 0.857

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

- 10,000 20,000 30,000

Busin

ess j

et h

ours

flow

n (a

nnua

l, in

100

0s)

GDP (billions, USD) Corporate profits (billions, USD)

Source: US Bureau of Economic Analysis & GAMA 2018 Annual Report Source: St Louis Federal Economic Research & GAMA 2018 Annual Report

2018 Final Results

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BBA Aviation

Through cycle structural market growth of 2%+ CAGR tracking GDP

2018 Final Results

US B&GA FAA Flight Movements and GDP

0

500

1,000

1,500

2,000

2,500

3,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FAA

Busi

ness

Jet F

light

Mov

emen

ts (0

00s)

)

US

GDP

($bn

)

GDP (Billions in 2012 chained Dollars) FAA Movements (thousands)

Source: US Bureau of Economic Analysis and FAA

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BBA Aviation

2018 US B&GA market performance

2018 Final Results

Market- US B&GA movements grew 0.9% in 2018

- Strong first half and a weaker second half

Why did the market slow in H2?

- Geopolitical tensions

- Fed rate rises

- Slowing capital investment and FDI

- Business confidence reducing in H2 2018

- Charter activity reduced - discretionary customer segment and most sensitive to economic uncertainty

Change picture

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BBA Aviation

US market by segment – YoY movements

2018 Final Results

Continued Signature Outperformance

Source: ARGUS, FAA & US Bureau of Economic Analysis

i. Short term flying hours fluctuates both above and below GDP through time

ii. Charter more sensitive to business confidenceiii. Fractional flying less volatile than charteriv. Q4 2018 returned to nominal growth from Q3

2018

-6

-4

-2

0

2

4

6

8

10

12

14

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Charter (P135) GA (P91) Fractional (P91K) Total SFS market Real GDP FAA

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BBA Aviation

Investing in our real estate – improving customer experience

2018 Final Results

- Developed a new 3,500 sq ft new sports charter terminal at Miami International

- $15 million investment in a new executive and sports charter terminal at Nashville plus additional hangar space with a new 30-year lease

- Atlanta – new 20-year lease (plus five-year extension) at our sole source FBO at the world’s busiest hub airport

- Renovation at Las Vegas FBO at McCarren International

Miami Sports Charter terminal

New FBO lounge at Nashville

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BBA Aviation

Leveraging our Signature network to deliver more value

Organic Growth

Core revenue source optimisation

Non-fuel revenue growth

New services and asset utilisation

1

2

3

4

Pricing optimisation

Credit card

Elite

Drop through >50% >50% >50%

Advertising

(1-2 yrs)

(2-4 yrs)

(2-5 yrs)

Underlying operating profit ($M) ~10 7-14 5-10

2018 Final Results

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BBA Aviation

2018 Ontic investment to support long-term growth

Ontic licence investments ($27.5m)- Licence with Honeywell for cockpit LCD displays on multiple commercial, military fixed-wing and rotorcraft platforms- Military fuel control product licence with UTAS*- Further licence with Ultra Electronics (including on Typhoon platform)- Licence with Esterline for legacy military and civil avionics products (primarily on Hawk platform)- Licence with a major OEM signed in December 2018

Firstmark acquisition completed in late 2018

* United Technologies Aerospace Systems

2018 Final Results

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BBA Aviation

Ontic growth platform

- Licence or acquire IP

- Legacy aftermarket space

- Ensure availability of parts and service

- Sole source positions

- OEM relationships

- Integration capability

- Supply chain proficiency

- 32 licence & M&A deals signed

- Revenue growth from $46M to $216M

- EBITDA margins of 30%+

- Active and extensive pipeline of opportunities

- Platform & Market analysis tools

- Scalable organisation ready to execute on future growth

What we do

Competitive advantage

Historical performance

Future growth

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3

4

Market leading position, strong value creation and significant future opportunity

2018 Final Results

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BBA Aviation

Executing strategy

2018 Final Results

Growth and Value Creation

Fortified Network & Expanded Portfolio

Operational Efficiency &

Process Improvement

Technology Solutions for Customers

Improved Customer

Experience

Data Empowered

Decision Making

1100 10110001101010

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BBA Aviation

BBA Aviation – Strong platform for sustainable growth

1

2

3

4

5

6

7

Simplified portfolio

Continuing Group generates $250-300m FCF per annum

2018 investments delivering to plan

Expand network and platform positions through connections to customers

Further opportunities for value creation from our infrastructure & IP

Signature flight path to deliver 250bps mid term through cycle outperformance

Ontic grows to a $100m EBITDA business by end 2021

2018 Final Results

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BBA Aviation

Group outlook

2018 Final Results

ERO disposal process ongoing

The continuing Group is focused on high ROIC and strongly cash generative businesses

At Signature, our investments in both our network and technology will underpin the growth and continued market outperformance of our FBO business

1

2

4

5 The Board is confident of growth in 2019, through continued outperformance against a flat US B&GA market backdrop

3

Ontic continues to have a strong pipeline of growth opportunities and strong order book coverage for 2019 and beyond

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BBA AviationBBA Aviation 2018 Final Results

www.bbaaviation.com

Questions

2018 Final Results

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BBA AviationBBA Aviation 2018 Final Results

Appendix

www.bbaaviation.com

2018 Final Results

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BBA Aviation

Debt facilities that support growth and long-term nature of core assets

- Leverage range set at 2.5-3.0x on a covenant basis (2.8x at December 2018)

- $650m unsecured RCF refinanced in H1 2018, expiry March 2023

- In April 2018 issued our inaugural $500m senior unsecured notes due 2026 at 5.375%

- Proceeds used to repay Facility B acquisition debt and maturing US PP notes

- Facility C acquisition debt of $450m likely to be refinanced in 2019 (matures 2020)

- Headroom of $528m at December 2018

2018 Final Results

Debt Maturity Profile

$m

0

100

200

300

400

500

600

2018 2019 2020 2021 2022 2023 2024 2025 2026

USPP RCF Usage Term Debt Usage Bond

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BBA Aviation

Depreciation and Amortisation 2018

2018 Final Results

Extract from cash flow2018

Operating profit 227.6

Operating profit from discontinued operations 33.9

Share of profit from associates and joint ventures (4.0)

Profit from operations 257.5

Depreciation of property, plant and equipment 69.0

Amortisation of intangible assets 101.0

TotalUnderlying Exceptional Statutory

OP 375.2 (113.7) 261.5

Depreciation 69.0 - 69.0

Amortisation 12.2 88.8 101.0

EBITDA 456.4 (24.9) 431.5

DiscontinuedUnderlying Exceptional Statutory

OP 35.0 (1.1) 33.9

Depreciation1 2.1 - 2.1

Amortisation1 1.6 - 1.6

EBITDA 38.7 (1.1) 37.6

ContinuingUnderlying Exceptional Statutory

OP 340.2 (112.6) 227.6

Depreciation 66.9 - 66.9

Amortisation 10.6 88.8 99.4

EBITDA 417.7 (23.8) 393.9

Note 1: Suspended from June 2018 30

BBA Aviation

Revenue split1 and organic growth2

2018 Final Results

Note 1: Revenue by origin for continuing operations only | Note 2: Organic growth representing continuing operations only

Signature 91%

Organic 3%

SignatureN. America 91%

Organic 3%

Signature RoW 9%

Organic 3%

Ontic 98%

Organic (4)%

Revenue2 ($m) N. America RoW Total

Signature 1,926.5 201.1 2,127.6

Middle East - 3.7 3.7

Ontic 134.1 81.9 216.0

2,060.6 286.7 2,347.3

Middle East 2%

Organic (34)%

Ontic (incl Middle East) 9%

Organic (5)%

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BBA Aviation

Adjusted earnings per share - basic

2018 Final Results

Discontinued Continuing Total

2018 2017 2018 2017 2018 2017

Adjusted earnings A 24.2 22.6 216.0 223.8 240.2 246.4

Underlying DT 5.4 (3.2) 20.7 50.9 26.1 47.7

Adjusted earnings on current tax B 29.6 19.4 236.7 274.7 266.3 294.1

IFRS weighted average number of shares C 1,030.1 1,028.2 1,030.1 1,028.2 1,030.1 1,028.2

Underlying EPS A/C 2.3c 2.2c 21.0c 21.8c 23.3c 24.0c

Growth 4.5% (3.7)% (2.9)%

Cash EPS B/C 2.9c 1.9c 23.0c 26.7c 25.9c 28.6c

Growth 52.6% (13.9)% (9.4)%

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BBA Aviation

Disclaimer

2018 Final Results

www.bbaaviation.com

This presentation contains forward-looking statements including, without limitation, statements relating to: future demand andmarkets of the Group’s products and services; research and development relating to new products and services; liquidity and capital;and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertaintiesbecause they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differmaterially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changesin interest and exchange rates, in tax rates or tax legislation, commodity prices and other economic conditions; negotiations withcustomers relating to renewal of contracts and future volumes and prices; events affecting international security, including globalhealth issues and terrorism; changes in regulatory environment; the introduction or variation of tariffs or duties; and the outcome oflitigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result ofnew information, future events or otherwise.

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