BBA Aviation – enabling flight; expanding horizons 2016 Final Results
BBA Aviation 2016 Final Results 2016 – a transformational year Major expansion of Signature ‒ Acquired Landmark Historical 1 Today 2 Flight Support Aftermarket Services Flight Support ‒ Unique global network of >200 FBOs Aftermarket Services 28% 72% 12% 88% Focused the Group Total operating Total operating profit profit $302.6m $181.5m ‒ Value added, IP protected, strong ROIC / cash flow ‒ Merged aircraft management and charter business ‒ Grown Ontic Signature global network expansion ‒ ASIG disposal 203 Successfully integrated Landmark Aviation ‒ Cost synergies quicker and greater than anticipated 138 125 115 118 112 106 ‒ Extended opportunity for outperformance 2010 2011 2012 2013 2014 2015 Now …enhanced underlying quality, growth and opportunity for value creation Note 1: Based on 2015 financial information 01 Note 2: Based on 2016 financial information
BBA Aviation 2016 Final Results Modest growth in US B&GA flying continues US Market Segments Low market growth ‒ US B&GA departures +1% Months Flight hours of growth / ‒ European B&GA movements +2% TTM Y-on-Y decline ‒ Military market stable Large Cabin Jets +5% 79 months Midsize Cabin Jets Continued decline in key engine repair segment - Aircraft >10yrs old - 5% 61 months ‒ Legacy mid cabin - Aircraft <10yrs old + 2% 80 months Small Cabin Jets - 1% 6 months Total Market +1% 80 months Source: FAA, OAG …Signature continuing to outperform 2
BBA Aviation 2016 Final Results Strong business performance Continuing Discontinued Signature performing well ASIG ‒ Continued outperformance; new locations delivering; ‒ Further operational improvements and new business wins integration complete ‒ Business in good shape, sold in January 2017 ‒ Further network expansion ‒ Large development projects successfully completed ‒ Created one of the largest aircraft charter and management businesses Aftermarket Services mixed ‒ Ontic good performance, new licences contributing ‒ Significant Ontic portfolio growth ‒ ERO footprint rationalisation programme on track; improving performance in weak markets …delivering further good growth 3
BBA Aviation 2016 Final Results Performance Review Mike Powell Group Finance Director 4
BBA Aviation 2016 Final Results 2016: continued excellent delivery 2015 Operating profit 1 ($m) 2016 Change restated Flight Support (88% of continuing OP 1 ): Flight Support ‒ Existing Signature continued outperformance with good drop- 294.0 154.4 90% (continuing) through Aftermarket Services 42.0 59.6 (30)% ‒ New locations delivering as expected; integration successfully completed; Central costs (continuing) (14.8) (16.1) 8% ‒ Synergies faster and greater than anticipated Aftermarket Services (12% of continuing OP 1 ): Central costs (ASIG) (18.6) (16.4) (13)% Total central costs (33.4) (32.5) (3)% ‒ Ontic good performance, H2 revenue uptick Group continuing 302.6 181.5 67% ‒ ERO slight H2 improvement Discontinued 27.5 20.5 34% Discontinued operations Group total 330.1 202.0 63% ‒ ASIG successfully sold for $202 million in January 2017 Basic adjusted EPS Continued strong cash flow 19.4c 18.0c 8% (continuing) ‒ Further deleveraging Cash EPS (continuing) 22.1c 18.6c 19% Dividend per share 12.75c 12.15c 5% Net debt (1,335.3) 456.5 Net debt to EBITDA, covenant 3.1x 2.3x Net debt to EBITDA, reported 3.2x 2.3x …driven by Signature, underpinned by Ontic Note 1: Underlying operating profit (pre exceptional and other items) 5
BBA Aviation 2016 Final Results Flight Support: strong performance 88% of continuing OP 1 Strong revenue growth Revenue Bridge ($m) ‒ Signature good organic growth of 5%; further outperformance 40.0 1,443.2 545.9 ‒ Significant contribution from Landmark (6.0) Organic operating profit growth of 7 2 % 931.6 863.3 (11.4) (56.9) ‒ Extended customer service offering through new locations and new services supporting good operating leverage Landmark Aviation delivering as anticipated 2015 FX Fuel 2015 Acq's Organic Prior Year 2016 Like- one-offs (HK / for-like Singapore) ‒ $21.9m synergies delivered in 2016 6 FBOs successfully sold Operating Profit 1 ($m) One of the largest aircraft charter and management fleets 10.1 294.0 21.9 (1.2) 110.5 Divisional ROIC 11.2% (FY 2015: 15.3%) 154.4 152.6 (1.8) - Note 1: Underlying operating profit (pre exceptional and other items) Note 2: Adjusted for two one-off items in 2015: the reclassification of our investment in the Hong Kong 2015 FX Fuel 2015 Acq's Syne- Organic Prior Year 2016 Business Aviation Centre as an associate and the trading losses from ASIG’s operations at Singapore Like- rgies one-offs (HK Changi Airport for-like / Singapore) 6
BBA Aviation 2016 Final Results Landmark Aviation progress Successful integration of 62 new FBOs Operating margins in line with expectations Cost synergies delivered ahead of schedule ‒ Annualised cost savings of $39m from 2017 1 ~$42m total integration costs ‒ $24.9m of one off expenses (shown as exceptional) ‒ $17m of capital expenditure Synergies and Landmark contribution will no longer be reported separately Cleveland Burke Lakefront Airport …delivering on acquisition objectives 7
BBA Aviation 2016 Final Results Aftermarket Services: mixed performance Revenue down 9.5% 1 Revenue Bridge ($m) ‒ Ontic delivering uptick in revenues in H2 782.4 12.8 ‒ Depressed volumes in ERO, challenging trading conditions 765.9 (16.5) $(39.7)m engine trading 705.9 Operating profit 2 down 30% (72.8) ‒ Ontic good operational performance – now >85% of division 2015 FX 2015 Acq's Organic 2016 ‒ Good contributions from new Ontic licences Like- for-like Organic includes $(39.7)m engine trading revenue recognised in previous year ‒ ERO performance reflecting market conditions, reduced workscopes, competitive pricing, OEM actions, reduced engine trading, leading to Operating Profit 2 ($m) $184.4m impairment 4.3 59.6 56.5 ERO footprint rationalisation programme stabilising business (3.1) 42.0 ‒ Cost reduction benefiting H2 performance (18.8) Divisional ROIC 6.9% (2015: 8.2%) 2015 FX 2015 Acq's Organic 2016 Like- for-like Note 1: Comparator includes $39.7 million of engine trading Note 2: Underlying operating profit (pre exceptional and other items) …with good result and outlook from Ontic 8
BBA Aviation 2016 Final Results Discontinued ASIG operations ‒ Successful disposal for $202m completed in Revenue Bridge ($m) January 2017, net proceeds of ~$170m 16.6 416.8 415.8 ‒ Good underlying financial and operational 400.2 performance (13.3) (2.3) ‒ $7.1m benefit from suspension of depreciation ‒ Assets written down by $109.1m, in anticipation of sale 2015 FX Fuel 2015 Underlying 2016 Like-… Operating Profit 1 ($m) 11.2 27.5 (4.3) 20.5 0.1 20.6 - 2015 FX Fuel 2015 Underlying Panama 2015 gain 2016 Like- on purchase for-like Note 1: Underlying operating profit (pre exceptional and other items) 9
BBA Aviation 2016 Final Results Underlying Group Income Statement Continuing operations ($m) 2016 2015 Change Revenue 2149.1 1714.0 25% Revenue (fuel adjusted) 2149.1 1657.1 30% Discontinued operations ($m) 2016 2015 Change Operating profit 302.6 181.5 67% Operating profit 27.5 20.5 34% Margin % 14.1% 10.6% Margin % (fuel adjusted) 14.1% 11.0% Net interest (63.9) (31.8) 101% Profit before tax 238.7 149.7 60% Profit after tax 17.9 15.4 16% Profit after tax 199.2 128.9 63% Continuing, adjusted EPS 19.4c 18.0c 8% Continuing operations by segment 2016 2015 Change Total Group ($m) 2016 2015 Change ($m) Flight Support 294.0 154.4 90% ROIC 10.1% 11.0% (90)bps Aftermarket Services 42.0 59.6 (30)% Adjusted EPS 21.1 20.1 5% Central costs (continuing) (14.8) (16.1) 8% Adjusted EPS (continuing) 19.4 18.0 8% Central costs (ASIG) (18.6) (16.4) (13)% Dividend 12.75 12.15 5% Total central costs (33.4) (32.5) (3)% Operating profit 302.6 181.5 67% 10
BBA Aviation 2016 Final Results Exceptional and other items Main exceptional and other items (before tax) Continuing ‒ Restructuring expenses: ERO $9.9m ‒ Landmark Aviation integration costs $24.9m ‒ Amortisation of acquired intangibles: $98.6m ‒ ERO impairment $184.4m Discontinued ‒ ASIG write down in anticipation of sale $109.1m 11
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