BOC Aviation : Announcements and Notices - FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

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BOC AVIATION LIMITED

中 銀 航 空 租 賃 有 限 公 司 *

(Incorporated in the Republic of Singapore with limited liability)

Stock Code: 2588

FINAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL HIGHLIGHTS

Our financial highlights for the year ended 31 December 2021 are:

• Total revenues and other income were up 6% year-on-year, at US$2.2 billion
• Profit before tax was US$639 million and net profit after tax was US$561 million, rising 13% and 10% respectively from 2020
• Earnings per share of US$0.81 and net assets per share of US$7.59
• Total assets were stable year-on-year, at US$23.9 billion at 31 December 2021
• Raised US$3.5 billion in new financing
• Maintained strong liquidity with US$485 million in cash and cash equivalents, and US$5.6 billion in undrawn committed credit facilities at 31 December 2021
• Stable operating cash flows net of interest at US$1.3 billion
• Board recommended a final dividend for 2021 of US$0.1733 per share, pending approval at the AGM to be held on 9 June 2022. The final dividend will be payable to Shareholders registered at the close of business on the record date, being 17 June 2022, bringing the total dividend for the financial year 2021 to US$0.28311 per share

Capitalised terms used but not defined in this announcement are found in pages 73 to 75.

Due to rounding, numbers presented throughout this announcement may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

1 Includes interim dividend of US$0.1098 per share paid to Shareholders registered at the close of business on 4 October 2021.

• For identification purposes only

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	Exhibit 1: Financial highlights
	Year ended 31 December
	2021	2020	Change1
	US$m	US$m	%
Statement of Profit or Loss
Revenues and other income	2,183	2,054	6.3
Costs and expenses	(1,545)	(1,491)	3.6
Profit before income tax	639	563	13.4
Net profit after income tax	561	510	10.1
Earnings per share (US$)2	0.81	0.73	10.1
	As at	As at
	31 Dec 2021	31 Dec 2020	Change1
	US$m	US$m	%
Statement of Financial Position
Cash and short-term deposits3	486	408	19.3
Total current assets	673	656	2.6
Total non-current assets	23,207	22,913	1.3
Total assets	23,879	23,568	1.3
Total current liabilities	2,206	2,157	2.2
Total non-current liabilities	16,408	16,634	(1.4)
Total liabilities	18,613	18,792	(0.9)
Net assets	5,266	4,777	10.2
Financial Ratios
Net assets per share (US$)4	7.59	6.88	10.2
Gross debt to equity (times)5	3.2	3.5
Net debt to equity (times)6	3.1	3.4

1

2

3

4

5

6

Percentage change is calculated based on numbers in US$ thousands as shown in the financial statements. Earnings per share is calculated by dividing net profit after tax by total number of shares outstanding at 31 December 2021 and 31 December 2020. Number of shares outstanding at 31 December 2021 and 31 December 2020 was 694,010,334.

Includes encumbered cash and bank balances of US$1.2 million as at 31 December 2021 and less than US$1,000 at 31 December 2020.

Net assets per share is calculated by dividing net assets by total number of shares outstanding at 31 December 2021 and 31 December 2020.

Gross debt to equity is calculated by dividing gross debt by total equity at 31 December 2021 and 31 December 2020.

Net debt is defined as gross debt less cash and short-term deposits. Net debt to equity is calculated by dividing net debt by total equity.

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Exhibit 2: Total assets, US$b

			23.6	23.9
	18.3	19.8
16.0
2017	2018	2019	2020	2021

Exhibit 3: Net profit after tax, US$m

	620	702
587			561
		510
2017	2018	2019	2020	2021

PORTFOLIO AND OPERATIONAL HIGHLIGHTS

As at 31 December 2021, BOC Aviation had:

• A total fleet of 521 aircraft owned, managed and on order1, with an average aircraft age of 3.9 years and an average remaining lease term of 8.3 years for the 380 owned aircraft fleet, weighted by net book value
• Leased aircraft to 86 airlines in 38 countries and regions
• Taken delivery of 52 aircraft (including seven acquired by airline customers on delivery) in 2021
• Executed 160 transactions in 2021, including 74 lease commitments
• Sold 26 aircraft in 2021, including 23 from the owned fleet
• An orderbook of 104 aircraft1
• Recorded aircraft utilisation of 98.5% for the owned portfolio for the year ended 31 December 2021

1 Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery.

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Exhibit 4: Aircraft portfolio at 31 December 2021, by number of aircraft

	Owned	Managed	Aircraft on
Aircraft Type	Aircraft	Aircraft	Order1	Total
Airbus A320CEO family	102	15	0	117
Airbus A320NEO family	91	0	35	126
Airbus A330CEO family	10	1	0	11
Airbus A330NEO family	6	0	0	6
Airbus A350 family	9	0	0	9
Boeing 737NG family	72	14	0	86
Boeing 737 MAX family	40	0	45	85
Boeing 777-300ER	24	4	3	31
Boeing 777-300	0	1	0	1
Boeing 787 family	21	1	21	43
Freighters	5	1	0	6
Total	380		37	104	521

1

2

3

Exhibit 5: Net book value2 of aircraft by region3

Americas	Chinese Mainland,
16.7%	Hong Kong SAR,
	Macau SAR and
	Taiwan
	27.8%

Middle East

and Africa

11.7%

	Asia Paci c
Europe	(excluding Chinese
Mainland, Hong
21.1%
Kong SAR, Macau
	SAR and Taiwan)
	22.7%

Includes all commitments to purchase aircraft including those where an airline customer has the right to acquire the relevant aircraft on delivery.

Including net book value of aircraft on leases classified as finance leases in accordance with IFRS 16 (Leases) and excluding aircraft off lease.

Based on the jurisdiction of the primary obligor under the relevant leases.

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CHAIRMAN'S STATEMENT

2021 was a year of continued progress, which gained momentum as the global effects of the Covid pandemic on the aviation industry began to moderate. Our Company reported a profit before tax of US$639 million and a net profit after tax of US$561 million, rising by 13% and 10% year-on-year, respectively. This took total cumulative profits since inception to US$5.5 billion. Total revenues and other income rose to US$2.2 billion in 2021, up 6% year-on-year, while our total assets were US$23.9 billion as at 31 December 2021, from US$23.6 billion as at 31 December 2020.

Our dividend policy remains to pay up to 35% of our full year net profit after tax to our Shareholders, and our Board has recommended a final dividend of US$0.1733 per share. This will bring the total dividend for 2021 to US$0.2831 per share and the total amount paid by way of dividends since our IPO to over US$1 billion.

In April, I was appointed Chairman of the Board of Directors, succeeding Mr. Sun Yu. I have since been joined by two new non-executive directors, Mdm. Wei Hanguang and Mr. Wang Xiao, who succeeded Mr. Wang Zhiheng and Mr. Li Mang respectively. We thank Mr. Sun Yu, Mr. Wang Zhiheng and Mr. Li Mang for their valuable contributions to BOC Aviation, and welcome Mdm. Wei Hanguang and Mr. Wang Xiao to the Board.

We remained amongst the world's most valuable listed aircraft operating leasing companies at year end in terms of market capitalisation. We also continued to be one of the top five global aircraft operating leasing company and the largest aircraft leasing company based in Asia-Pacific, by value of owned fleet. In 2021 our fleet grew to 417 owned and managed aircraft leased to 86 airlines in 38 countries and regions. During the year we added five new customers as we further diversified our portfolio. The Belt and Road Initiative is reflected in the growth and development of our fleet: 64% of our owned fleet, by net book value, is leased to airlines domiciled in Belt and Road Initiative countries and regions.

During the year both Fitch and S&P Global Ratings reaffirmed our A- credit rating, with the latter lifting our outlook to Stable from Negative, in recognition of our resilient business strategy, our sound financial structure and our access to liquidity.

Delivery delays from the world's major aircraft manufacturers continued in 2021, as Covid, aircraft groundings and supply chain pressures affected our major manufacturer partners. Despite this, we ended the year with a fleet net book value of US$19.6 billion, another record for the Company.

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