[PPT] - 2019 Full Year Results For the year ended 31 January 2019 Mark PowerPoint Presentation

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For the year ended 31 January 2019

2019 Full Year Results

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Mark Briffa

Group Chief Executive

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OVERVIEW

Full year results in line with prior year with underlying PBT of £5.8m*
Gross profit up 2.3%
Charter in line with prior year; record profits in US, up 30.2%, and Freight, up 45.3%
Consulting & Training up 25.0%, now contributing 11.9% to overall gross profit
Underlying EPS of 9.6p, up 14.3%*; statutory EPS of 5.6p (FY18: 6.9p)
Full year dividend up 1.8% at 5.60p with final dividend of 3.85p, an increase of 1.3%
Strategy intact and proving effective; moving forward fitter and stronger, and with confidence

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FULL YEAR RESULTS MAY 2019

*Stated before exceptional and other items

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A GLOBAL AVIATION SERVICES GROUP

CHARTER CONSULTING & TRAINING MANAGED SERVICES

A V I A T I O N S A F E T Y

Blue Chip Global Customer Base

Airline Operators
Military & Civil
Regulators
Airports
Oil & Gas
Sports
MICE
Corporates
Individuals

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FULL YEAR RESULTS MAY 2019 PRIVATE JETS COMMERCIAL JETS JETCARD FREIGHT REGULATORY & COMPLIANCE FATIGUE RISK MANAGEMENT WILDLIFE HAZARD MANAGEMENT, ATC MANAGED SERVICES

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STRONG GEOGRAPHIC PRESENCE

Founded in 1961, Air Partner is an aviation services group that provides worldwide aviation charter, consulting and training services to industry, commerce, governments and private individuals and across civil and military organisations.

Operating 24/7, 365 days 14 offices globally c.350 employees globally

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FULL YEAR RESULTS MAY 2019

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STRATEGY IN ACTION

Acquisition of Cabot (Air Partner Remarketing). Acquisition of Baines

Simmons. Customer First

initiative launched Acquisition of Clockwork. Baines Simmons wins 10 year Isle of Man contract. New dividend policy announced New York office opened Acquisition of SafeSkys New Finance System 1 into 5 share split Upskilling of key positions and Board capabilities Processes & controls upgraded Los Angeles office opened Accounting Review 2010: Military contracts > 60% of profits 2019: No one customer > 10% profits

Total Shareholder Return

83.7%

2015 2016 2017 2018 2019

Post Year End: Offices opened in Houston and Singapore More planned

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FULL YEAR RESULTS MAY 2019

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Joanne Estell

Chief Financial Officer

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CHANGES TO CONTROL ENVIRONMENT

Rapid and thorough response: comprehensive work plan developed
Good progress made in short space of time:

 We have upgraded and upskilled key members of the finance and head office team  Roles and responsibilities reviewed, reducing dependency on one person and removing ‘single points of failure’  A new Risk and Assurance role created, reporting directly to the CFO with a direct line to the Chair of the Audit Committee  Balance sheet control and review process tightened  Improved quality and frequency of management information  Key policies and procedures rolled out, level of training increased

We are on a road to recovery; control environment improved and processes in place to continually review and challenge arrangements

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FULL YEAR RESULTS MAY 2019

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2018/19 FINANCIAL HIGHLIGHTS

£m’s January 2019 January 2018 Change (%) Gross transaction value (£m) 273.3 261.3 4.6% Revenue 77.5 74.3 4.2% Gross profit 35.5 34.7 2.3% *Admin expenses & net impairment losses on financial assets (29.5) (28.8) (2.4)% *Underlying operating profit 6.0 5.9 1.7% *Underlying profit before tax (£m) 5.8 5.8

Statutory profit before tax (£m)

3.4 4.8 (29.1)% Underlying basic EPS (pence) 9.6p 8.4p 14.3% Basic continuing EPS (pence) 5.6p 6.9p (18.8)% Final dividend (pence) 3.85p 3.80p 1.3% Total dividend (pence) 5.60p 5.50p 1.8%

FULL YEAR RESULTS MAY 2019

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*Stated before exceptional and other items

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2018/19 PROFIT RECONCILIATION

£m’s January 2019 January 2018 Underlying profit before tax (£m’s) 5.8 5.8 Costs related to the accounting review and associated items (1.3)

Abortive acquisitions costs

(0.5) (0.3) Changes in Board composition (0.4)

Amortisation of purchased intangible assets

(0.4) (0.3) Acquisition costs & non – cash acquisition costs

(0.1)

Restructuring costs

(0.3)

Release of deferred consideration 0.2 Statutory profit before tax (£m) 3.4 4.8

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GROSS PROFIT BY PRODUCT

15.9 10.4 4.9 4.2 17.3 10.6 3.4 3.4

2 4 6 8 10 12 14 16 18 20 Commercial Jets Private Jets Freight Consulting & Training

Jan-19 Jan-18

£’m

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Commercial Jets Private Jets Freight Consulting and Training Jan-19 Jan-18 44.9% 29.3% 13.8% 11.9% 50% 30.5% 9.7% 9.7%

Commercial Jets down, owing to significant PY one-off contract
Freight gross profit up 45.3%, driven by investment in people
Private Jets strong US performance, flat overall
Consulting & Training up 25.0%, including SafeSkys; up 14.9%
n a LFL basis
Commercial Jets remains largest division at 44.9%
Freight growth leads to contribution of 13.8%
Consulting & Training now 11.9% of total, v 9.7% LY

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GROSS PROFIT BY REGION

17.4 9.9 8.1 0.1 17.6 9.8 6.2 1.1

2 4 6 8 10 12 14 16 18 20 UK Europe USA ROW

Jan-19 Jan-18

£’m 49.1% 50.8% 28.0% 28.3% 22.8% 17.9% 0.1% 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UK Europe USA ROW Jan-19 Jan-18

Record growth in the US, up 30.2%; investment in people

and broadening of footprint

UK and Europe impacted by sector volatility in second half
>50% of gross profit coming from outside UK
Further growth in the US takes contribution to 22.8%

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2018/19 BALANCE SHEET – as at 31 January 2019

£ms January 2019 January 2018 Intangible assets 11.6 12.1 Tangible assets 0.9 1.2 Trade and other receivables 19.1 16.3 Restricted cash balances – Jet Card 17.7 15.9 Other cash balances 7.5 7.3 Other current assets 0.3 0.7 Trade and other payables (8.0) (6.7) Deferred income (25.4) (24.3) Other current liabilities (5.8) (6.9) Deferred tax (net) (0.3) (0.3) Borrowings (5.5) (2.5) Other long term liabilities (0.2) (1.4) Net assets 11.7 11.4

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CASH FLOW

The above explains net increase in cash between opening and closing balances
Level of debt increased to support growth in Freight where ability to mobilise is a competitive advantage
Increase in working capital relates to trade receivables – no issues with ageing of receivables
Record JetCard deposits received in the UK

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Mark Briffa

Group Chief Executive

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CHARTER – flat year on year

COMMERCIAL JETS

Strength across territories offsetting large, one-off, prior year contract
Driven by Tour Ops, Government, Sports, and Conferences & Exhibition sectors
Significant business in US from corporate shuttles and Typhoons recovery
3-year managed services contract win for Airbus
Cross-selling supporting underlying strength

PRIVATE JETS

UK: Investment in new sales teams; benefit expected in current financial year
UK & Europe: sector volatility, key customers flying less; but growth in JetCard numbers and deposits
US: Investment in people delivering growth in gross profit, in ad-hoc and JetCard
US: Increase in JetCard membership, bookings and renewals

FREIGHT

Second year of record profits
Good business wins and team growth across office network
New team established in US, immediately profit enhancing
Business coming from On Board Courier, Aircraft on Ground spares and Government requirements

51% 33% 16% Gross Profit Commercial Jets Private Jets Freight

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CONSULTING & TRAINING – up 25.0%

BAINES SIMMONS

Strong new management driving strategy, clear direction and future growth
Record performance in Training with momentum continuing into current year
Good new business wins, and cross selling opportunities crystallising

CLOCKWORK RESEARCH

Small, niche business – good progress integrating Fatigue Risk Management into Baines Simmons
Co-authored industry guidance with South West Airlines and NASA
Other work carried out incudes with Air France and Jet2.com

SAFESKYS

Wildlife Management holds strong market position in the UK
New contracts won and existing extended; secured Western region with RAF for further minimum three years
New contracts supporting foreign government air forces within Europe
Provision of £0.7m made for two loss making Air Traffic Control contracts

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We are integrating all Consulting & Training businesses into Baines Simmons
Gross profit was up 25.0%, including impact of SafeSkys. LFL gross profit up 14.9%

11.9%

Consulting & Training contribution to Group gross profit

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STRENGTHENING SENIOR MANAGEMENT

We have upskilled key management positions and strengthened the Board
The right people in place to take our business to the next level

Ian Holder

MD of Consulting & Training (April 2018)

Ed Warner

Chairman (April 2019)

Joanne Estell

CFO (September 2018)

Kevin Macnaughton

MD of Charter (April 2019)

Paul Dollman

Chair of Audit (April 2019)

Craig Pattison

HR Director (July 2018)

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LONG TERM GROWTH STRATEGY

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To build a world-class, global aviation services group

Putting customers first, to provide an exceptional tailored

service across the Group

To grow both organically and through acquisition
We are investing in the future: in our people, processes and

infrastructure

Whilst broadening the portfolio of aviation services we offer,

to reduce Charter volatility and improve quality of earnings

Maintaining our strong brand identity to unite our businesses

across divisions

We manage the business for the long term, delivering

returns to shareholders through progressive dividends  Throughout the challenges of H1 we remained focused on our strategic objectives  We continued to deliver an outstanding customer service  We opened an office in LA, expanded our teams in Freight and in sales  We upskilled key management positions and improved financial controls  We are committed to our acquisition strategy and continue to assess a pipeline of

pportunities

 The actions we have taken have reset the business operationally and we move forward fitter and stronger

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POST YEAR-END

We opened new offices in Houston and Singapore in February 2019
Our investment in Managed Services is delivering results:
Appointed by Aurigny to manage its operations control centre in April 2019
New Chair, Ed Warner, and Chair of Audit and Risk Committee, Paul Dollman, appointed
We are re-energising our brand identity

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SUMMARY AND OUTLOOK

Robust Full Year performance; strategy intact and proving effective
Well invested business, great people and a solid global customer base
Reset the business operationally, and move forward fitter and stronger to deliver strategy
We will continue to invest to support our growth, both organic and by acquisition
Current trading is slightly ahead of the prior year
Well placed to manage the continuing challenges, in the aviation sector and the wider economic backdrop

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Appendix

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COMMERCIAL JETS

Charter of large aircraft for 20+ people for governments, corporates, sports and entertainment teams, industrial, manufacturing customers and tour operators

PRIVATE JETS & JETCARD FREIGHT

Charter of cargo aircraft & part-charter for regular & bespoke requirements, including emergency aid drops, time critical door to door freight delivery and on-board couriers

SUPPORT SERVICES

Charter of small aircraft or jets for up to 19 people, for business and leisure, by corporates, HNWIs and government. Pre paid JetCard

ffering fixed hourly rates, guaranteed aircraft

availability 24/7 Operations Travel Management

Includes REMARKETING

A global aircraft remarketing service akin to used sales, covering both commercial and private jets

CHARTER CONSULTING & TRAINING / MANAGED SERVICES

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FULL YEAR RESULTS MAY 2019

AIR PARTNER: TWO DIVISIONS

BAINES SIMMONS

A world leading aviation safety consultant specialising in regulation & compliance, safety management, training, consulting and outsourcing

SAFESKYS EMERGENCY PLANNING

Experts in planning, executing and managing air support and evacuations worldwide A leading provider of turnkey Air Traffic Control (ATC) Services including ATC engineering and wildlife management units

CLOCKWORK RESEARCH

A leading fatigue risk management consultancy delivering innovative & effective fatigue risk management solutions for clients across various sectors

f the aviation industry

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UNDERLYING OPERATING PROFIT BY PRODUCT

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50% 18% 24% 8%

OP Profit contribution

CJ PJ Freight C&T

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DISCLAIMER

Certain information included in this presentation is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and Air Partner plc’s plans and objectives for future operations. These may include, without limitation, discussions of expected future revenues, financing plans, expected expenditures, risks associated with changes in economic conditions, the strength of the aviation markets in the jurisdictions in which the Air Partner group operates, changes in exchange and interest rates. Forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Forward looking statements are not guarantees of future performance. All forward looking statements in this presentation are based upon information known to Air Partner plc on the date of preparation of this presentation. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), Air Partner plc undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

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