DP Aircraft I : Unaudited condensed consolidated Interim Report for six month period ended 30 June 2022

DP AIRCRAFT I LIMITED

UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

FOR THE SIX‐MONTH PERIOD ENDED 30 JUNE 2022

DP AIRCRAFT I LIMITED	2022
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six‐month period ended 30 June 2022

CONTENTS

• Fact Sheet

• Summary

• Highlights

• Chairman's Statement

10 Asset Manager's Report

1. Directors' information
2. Statement of Principal Risks and Uncertainties

1. Statement of Directors' Responsibilities
2. Independent Review Report to the Members of DP Aircraft I Limited

1. Condensed Consolidated Statement of Comprehensive Income (unaudited)
2. Condensed Consolidated Statement of Financial Position (unaudited)
3. Condensed Consolidated Statement of Cash Flows (unaudited)
4. Condensed Consolidated Statement of Changes in Equity (unaudited)
5. Notes to the Unaudited Condensed Consolidated Financial Statements

46 Company Information

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DP AIRCRAFT I LIMITED		2022
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six‐month period ended 30 June 2022
FACT SHEET
Ticker	DPA
Company Number	56941
ISIN Number	GG00BBP6HP33
SEDOL Number	BBP6HP3
Traded	Specialist Fund Segment ('SFS') of the London Stock Exchange
SFS Admission Date	4‐Oct‐13
Share Price	US$ 0.025 at 30 June 2022
Earnings per share	US$ 0.0143 for the period ended 30 June 2022
Country of Incorporation	Guernsey
Current Shares in Issue	209,333,333
Administrator and Company Secretary	Aztec Financial Services (Guernsey) Limited
Asset Manager	DS Aviation GmbH & Co. KG
Auditor	KPMG, Chartered Accountants
Corporate Broker	Investec Bank Plc
Aircraft Registrations	HS‐TQD
	HS‐TQC
Aircraft Serial Numbers	35320
	36110
Aircraft Type and Model	Boeing 787‐8
Lessee	Thai Airways International Public Company Limited ('Thai
	Airways')
Website	www.dpaircraft.com

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DP AIRCRAFT I LIMITED	2022
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six‐month period ended 30 June 2022

SUMMARY

COMPANY OVERVIEW

DP Aircraft I Limited (the 'Company') was incorporated with limited liability in Guernsey under the Companies (Guernsey) Law, 2008 on 5 July 2013 with registered number 56941.

The Company was established to invest in aircraft. The Company is a holding company, and made its investment in aircraft held through two wholly owned subsidiary entities, DP Aircraft Guernsey III Limited and DP Aircraft Guernsey IV Limited (collectively and hereinafter, the 'Borrowers'), each being a Guernsey incorporated company limited by shares and one intermediate lessor company, DP Aircraft UK Limited (the 'Lessor'), a UK incorporated private limited company. The Company and its consolidated subsidiaries, DP Aircraft Guernsey III Limited, DP Aircraft Guernsey IV Limited and DP Aircraft UK Limited comprise the consolidated Group (the 'Group').

Pursuant to the Company's Prospectus dated 27 September 2013, the Company offered 113,000,000 ordinary shares of no‐par value in the capital of the Company at an issue price of US$ 1.00 per share by means of a placing. The Company's Shares were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 4 October 2013 and the Company was listed on the Channel Islands Securities Exchange until 27 May 2015.

On 5 June 2015, the Company offered 96,333,333 ordinary shares of no‐par value in the capital of the Company at an issue price of US$ 1.0589 per share by means of a placing. These shares were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 12 June 2015.

In total there are 209,333,333 ordinary shares in issue with voting rights.

In addition to the equity raised per above, the Group also utilised external debt to fund the acquisition of the aircraft. Further details are given within this summary section.

INVESTMENT OBJECTIVE

The Company's investment objective is to obtain income and capital returns for its Shareholders by acquiring, leasing and then, when the Board considers it appropriate, selling aircraft (the 'Asset' or 'Assets').

THE BOARD

The Board comprises independent non‐executive directors. The directors of the Board are responsible for managing the business affairs of the Company and Group in accordance with the Articles of Incorporation and have overall responsibility for the Company's and Group's activities, including portfolio and risk management while the asset management of the Group is undertaken by DS Aviation GmbH & Co. KG (the 'Asset Manager').

THE ASSET MANAGER

The Asset Manager has undertaken to provide the asset management services to the Company and Group under the terms of an asset management agreement but does not undertake any regulated activities for the purpose of the UK Financial Services and Markets Act 2000.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

The Group recognises the Paris Agreement on climate change. The Group operates NTA ('New Technology Aircraft')

• specifically Boeing 787‐8's equipped with Rolls Royce Trent‐1000 engines which are 20% more fuel efficient on a revenue‐per‐kilometre basis than similar comparable current technology legacy aircraft. The Board has taken steps to reduce its own travelling and maximises the use of virtual meetings within the board and with all its key service providers.

CORONAVIRUS ('COVID‐19')

COVID‐19 has had a significant impact on the airline sector, and by extension the aircraft leasing sector. More information is provided below and in the Asset Manager's Report.

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DP AIRCRAFT I LIMITED	2022
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six‐month period ended 30 June 2022

SUMMARY (CONTINUED)

THAI AIRWAYS INTERNATIONAL PCL ('THAI AIRWAYS' / 'THAI')

The suspension of travel due to COVID‐19 in 2020 resulted in Thai Airways entering into business rehabilitation. The Central Bankruptcy Court approved Thai's Business Rehabilitation plan on 15 June 2021, the rehabilitation process is currently ongoing. Please refer to the Asset Manager Report on pages 11 to 16 for details regarding the rehabilitation process.

The Group signed a Letter of Intent ('LOI') dated 1 March 2021 with Thai Airways under which the parties agreed to amend the lease terms that existed then. The actual lease agreement reflecting the terms set out in the LOI was signed on 1 April 2022. The effective date for the lease modification was agreed by both parties as 15 June 2021.

The new lease terms provide for a power by the hour ('PBH') arrangement until 31 December 2022 (i.e., rent will be payable by reference to actual monthly utilisation of the Thai aircraft and engine), with scaled back monthly fixed lease payments thereafter until 2026 that reflect reduced rates now seen in the market. The lease term was extended for a further 3 years to 9 December 2029, with further scaled back monthly lease payments starting from January 2027, the extension is however subject to the Group retaining a right of early termination in December 2026 after consulting the Lenders. Given the uncertainty around the extension of the lease term, the lease term is considered to be the period to 9 December 2026.

A corresponding agreement was reached with the bank providing finance for the aircraft leased to Thai Airways as detailed below. Note, under the terms agreed with the lending banks, the Company is (i) permitted a monthly payment of US$ 70,000 out of the monies received by the Group from Thai Airways through the PBH arrangement and (ii) restricted from holding more than US$ 1,200,000 in cash at any time, with any excess in either case paid over to the lending banks. This will continue when the PBH period ends.

DEKABANK DEUTSCHE GIROZENTRALE AND THREE OTHER CONSORTIUM MEMBERS ('DekaBank')

In May 2021, the Group and DekaBank amended and restated the existing loan facility agreements in respect of the Thai aircraft to accommodate the new lease terms. Repayments of principal are being deferred until after the end of the PBH arrangement, 31 December 2022; and the Group and DekaBank will enter discussions towards the end of the PBH arrangement to determine how to schedule interest payments, principal repayments and a final balloon repayment, having regard for both the income being received by the Group in respect of the Thai aircraft, and the running costs of the Group and its subsidiaries. Based on the amended and restated loan agreements in place, post the PBH period monthly payments of interest and principal will be limited to net lease rental monies available for application towards the loan, and the final balloon repayment will be settled out of proceeds from sale of the aircraft at the end of the lease term.

From the effective date (date loan agreement was amended and restated) interest is charged on the deferred principal at the percentage rate per annum equal to the sum of five per cent (5.0%) per annum (which, for the avoidance of doubt, includes the Margin) plus SONIA (previously LIBOR up to 31 December 2021) for the applicable period (such rate to be determined by the Facility Agent). Prior to the end of the PBH arrangement, DekaBank and the Group will enter into negotiations to fix the interest rate for the period post the PBH Arrangement.

Prior to the loan amendment detailed above, the Group and DekaBank had agreed that the Group would only be required to make interest payments on its borrowings relating to the assets leased to Thai, with no concomitant capital repayment obligation; and that the Group would make no dividend payments while deferrals remained outstanding under those borrowings.

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