LSE: AVAP

28 February 2020

Jeff ChatfieldExecutive Chairman

Iain CawteChief Financial Officer

Richard WolanskiFinance Director

Duncan ScottGroup General Counsel

Half Year 2020 Results

Important Notice

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Some of the statements in this presentation constitute “forward-looking statements” that do not directly orexclusively relate to historical facts. These forward-looking statements reflect the Company’s current intentions,plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and otherfactors, many of which are outside the Company’s control. Important factors that could cause actual results todiffer materially from the expectations expressed or implied in the forward-looking statements include known andunknown risks. Because actual results could differ materially from the Company’s current intentions, plans,expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statementscontained in this presentation with caution.Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on thepart of the Company to undertake or proceed with any transaction. In no circumstances will the Company beresponsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of theCompany. No reliance may be placed for any purpose whatsoever on the information or opinions contained in orgiven during this Presentation. The information and opinions contained in or given during this Presentation areprovided as at the date hereof, are not necessarily complete and are subject to change without notice. Norepresentation, warranty or undertaking is given by or on behalf of the Company or its directors, officers,shareholders, employees, agents and advisors as to the accuracy, completeness or reasonableness of theinformation or opinions contained in or given during this Presentation and no liability is accepted or incurred byany of them for or in respect of any such information or opinions, provided that nothing in this paragraph shallexclude liability for any representation or warranty made fraudulently.

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Snapshot of AvationVertically Integrated Platform with Diversified Fleet and Customer Base

1. Includes property, plant and equipment, assets held for sale and finance lease receivables as at 31 December 2019.2. Lease rentals receivable under non-cancellable operating leases plus finance lease rentals receivable excluding final/option payments.

Aircraft Weighted Average Aircraft Age

3.7Y

18 Airline Customers Operating

in 15 Countries

Weighted Average Remaining Lease

Term

49 3.7 Years

7.2 Years US$1.3BnFleet asset value(1)

US$925.8MnUnearned contracted

revenue (2)

18%/46%/36%split of

Widebody/narrowbody/turboprop aircraft by

value

8 Orders2 for Braathens2 for US Bangla

25 Purchase rights

Historical Operational and Financial PerformanceContinued Evolution to Younger Aircraft Portfolio and Track Record of Financial Expansion

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Weighted Average Aircraft Age

Years

Lease Rental RevenueTotal AssetsWeighted Average Remaining

Lease TermYears

Total Fleet

23

38

48 49

0

10

20

30

40

50

FY 2013 FY 2016 FY2019 HY2020

40

71

119

68

0

20

40

60

80

100

120

FY 2013 FY 2016 FY2019 HY2020

8.7

4.23.4

0

2

4

6

8

10

FY 2013 FY 2016 FY2019 HY2020

5.7

6.87.5

7.2

0

2

4

6

8

10

FY 2013 FY 2016 FY2019 HY2020

394M

832M

1.4B

0

300

600

900

1,200

1,500

FY 2013 FY 2016 FY2019 HY2020

US$M

ü Increased Scale

ü Young, Popular Fleet

ü Long Average Lease Term

ü Strong Revenue visibility

US$M

3.1

1.5B

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Half Year 2020 Summary

Total Profit after TaxUS$38.2 million+180% YoY

Profit before TaxUS$45.2 million +218% YoY

Interim Dividend per ShareUS 2.1 cents paid 9 January 2020+5% YoY

Average Cost of Debt(2)

4.56%FY 2019 : 4.62%

Lease rental revenueUS$65.0 million+12% YoY

RevenueUS$67.6 million+15% YoY

1. PP&E, assets held for sale and finance lease receivables2. Weighted average as at 31 December 2019

Fleet Assets(1)

US$1.30 billion+22% YoY

Earnings per ShareUS 60.0 cents+178% YoY

Operational Highlights HY2020

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Repossession and Repositioning

• Thomas Cook announced Liquidation 23 September 2019

• Aircraft repossessed and ferried out of the UK for maintenance checks

• Aircraft successfully transitioned to new lessee

Fleet Growth and Diversification

• Acquired 3 ATR72-600 aircraft, disposal of 2 Fokker F100 aircraft

• Leases signed with Braathens for 5 ATR72-600 aircraft

• Increase to 18 airline customers

• Acquisition of initial engine available for lease

Funding

• Credit rating upgrade by S&P (BB-/BB-)

• First ever commercial aircraft financed with Green Loan

• Airline Economics Award – “Deal of the Year for Innovation”

Strategic Review and Formal Sale Process

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• Announced on 6 January 2020 following an unsolicited approach to buy the Company

• Formal sale process of Company or portfolios of aircraft considered in parallel

• Purchase Rights for ATR aircraft now recognized in financial statements

• There are significant value drivers not recorded in the balance sheet including:

Ø 4 new ATR aircraft to be delivered in coming months

Ø Realisable value of fleet may exceed book value;

Ø Value of aircraft leasing platform and employees;

Ø Singapore tax domicile and membership of ALS;

Ø Positive rating trajectory and refinancing opportunities;

Ø Premium for control.

• The process will establish which pathway represents best value for shareholders

0

5

10

15

20

25

1978 1982 1987 1992 1997 2002 2007 2012 2017 2022 2027 2032 2037

Strong Industry Fundamentals

Passenger Air Travel is Resilient with a Long History of Stable Growth

Global air travel has doubled every 15 years

Source: ICAO, Airbus GMF 2019.

Oil Crisis

GulfCrisis

AsianCrisis

9/11 SARS Financial Crisis

4.3% Growth P.A.

x2

x2

x2

World Annual Traffic (Trillion RPKs)

Traffic Has Proven Resilient to External Shocks and has doubled every 15 years

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Aircraft Type Fleet Orders Options

Turboprop Aircraft

ATR 72-600 22 8 25

ATR 72-500 6 - -

Narrowbody Aircraft

A321-200 7 - -

B737-800 1 - -

A320-200 2 -

A220-300 6 - -

Fokker 100 3 - -

Widebody Aircraft

A330-300 1 - -

B777-300ER 1 - -

Total 49 8 25

Diversified fleet consisting of 18% widebody, 46% narrowbody and 36% turboprop aircraft by value9

Attractive Aircraft PortfolioDiversified Fleet Consisting of Young Aircraft

Balanced Fleet with Orderbook and Options to Retain Expansion Flexibility By Aircraft Value

Turboprop36%

Narrowbody46%

Widebody18%

Average Fleet Age: 3.7 Years

Average Lease Term: 7.2 Years

No order book for jets

Total 82 Aircraft fleet/orders/options

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Global Customer Relationships and Diversification

18 Airline Customers in 15 Countries

No lessees based in mainland China

Virgin Australia

66%Thomas Cook10%

Air India8%

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De-risking the Company through Revenue Growth and Diversification

Growth and diversification continues – New aircraft delivered & new customers in FY2020

By Monthly Rental Revenue Run Rate

Top 1 Customer Share – 19%

Top 3 Customers Share – 51%

As at 30 June 2015 As at 31 December 2019

Top 1 Customer Share – 66%

Top 3 Customers Share – 84%

Revenue FY15 =$57 million Revenue HY20 =$68 million

Virgin Australia

19%

VietJet19%

airBaltic13%

PAL10%

EVA8%

Cebu Pacific (1%)Golden Myanmar (2%)Fiji Airways (2%)easyJet (2%)Gailstair (2%)Air France (2%)DAT (2%)US-Bangla (2%)Flybe (3%) Garuda Indonesia (3%)Braathens (3%)Air India (3%)Mandarin Airlines (4%)

Fiji Airways (4%)Condor (6%)UNI Airways (6%)

Fleet Growth

12

0

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016 2017 2018 2019 HY2020

Fleet assets(1) (US$m)

1. Includes property, plant and equipment, assets held for sale and finance lease receivables as at 30 June, 31 December.

Profit & Loss Analysis

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Profit & Loss (US$m) HY2020 HY2019 ChangeRevenue 67.6 58.7 15%Depreciation expense (24.2) (19.8) 22%Administrative expense (6.1) (5.5) 12%Other income and expenses (Net) (1.3) -Leasing Business Operating Profit 36.0 33.4 8%Finance expense (Net) (27.5) (25.7) 7%Leasing Business Profit before tax 8.5 7.7 10%Unrealised gain on purchase rights 37.0 -Gains on disposal of aircraft 2.2 6.5Impairment loss on aircraft (2.5) -Total profit before tax 45.2 14.2 218%Tax (7.1) (0.6)Total profit after tax 38.2 13.6 180%

Debt Analysis

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HY2020 FY2019Net Indebtedness (US$ million) 1,043.6 1,016.6Weighted Average Cost of Debt 4.56% 4.62%Weighted Average Cost of Secured Debt 3.69% 3.74%Proportion of Fixed/Hedged Interest Rate Debt 90.8% 92.0%Net Debt/Assets 69.8% 73.0%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 HY2020

Cost of Debt

Secured debt Unsecured debt Total debt

Key Ratios

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Comparative Ratios HY2020 FY2019

Net asset value per share (A) £3.25 £2.95

Dividend/share for first half year (cents) 2.1 2.0

Administrative Expense/Revenue 9.1% 9.2%

Credit Ratios

Debt/EBITDA (B) 5.6 8.8

Operating Cash flows $62.1 million $22.3 million

FFO/Debt (C) 13.3% 6.6%

EBITDA/Interest Expense 4.0 2.5

A. Net asset value per share = Equity/Shares in Issue (USD:GBP = 1.32 at 31 December 2019)(FY2019: 1.27)B. EBITDA = Profit before taxation + Finance expenses +Depreciation + ImpairmentC. Funds from Operation = EBITDA - Interest Expense - Current Tax

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Avation Summary

Attractive Industry Dynamics

Focus on Maximising Shareholder Value

Leading Fleet Metrics

Increased Airline and Aircraft Diversification

Improved Credit Rating & Lower Cost of Debt

Increased Dividend

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Avation PLC65 Kampong Bahru RoadSingapore 169370Phone: + 65 6252 2077www.avation.net

Jeff ChatfieldExecutive Chairmanjeff@avation.net

Richard WolanskiFinance Directorrichard.w@avation.net

Iain CawteChief Financial Officeriain@avation.net

Question & Answer Section

Duncan ScottGroup General Counselduncan@avation.net