BBA Aviation plc Capital Markets Day Enabling Flight, Expanding - - PowerPoint PPT Presentation

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BBA Aviation plc Capital Markets Day Enabling Flight, Expanding - - PowerPoint PPT Presentation

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www.bbaaviation.com BBA Aviation plc Capital Markets Day Enabling Flight, Expanding Horizons 0 BBA Aviation 02/10/2018 Overview Strengths & Competitive Advantages Signature operations Signature commercial Ontic www.bbaaviation.com

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SLIDE 1

02/10/2018 BBA Aviation

www.bbaaviation.com

BBA Aviation plc Capital Markets Day

Enabling Flight, Expanding Horizons

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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SLIDE 2

02/10/2018 BBA Aviation 1

www.bbaaviation.com

Forward Looking Statements

This presentation contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and services; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome

  • f litigation. The Company undertakes no obligation to publicly update or revise any

forward-looking statement, whether as a result of new information, future events or

  • therwise.

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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2 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

AGENDA – London Luton

TIME SPEAKER 11:45-12:05 Mark Johnstone Group CEO Welcome and introduction 12:05-12:25 Tony Lefebvre Signature COO Presentation 12:25-12:50 Shawn Hall Signature CCO Presentation 12:50-13:20 Lunch 13:20-13:45 Gareth Hall Ontic President Presentation 13:45-14:05 David Crook Group FD Presentation 14:05- 14:45 Mark Johnstone Group CEO Wrap-up and Q&A 14:45-16:15 Site Tour 16:15 Day concludes

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3 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

AGENDA – Teterboro

TIME SPEAKER 9:30-9:55 Mark Johnstone Group CEO Welcome and introduction 9:55-10:15 Tony Lefebvre Signature COO Presentation 10:15-10:40 Shawn Hall Signature CCO Presentation 10:50-11:05 Coffee 11:05-11:25 Gareth Hall Ontic President Presentation 11:25-11:40 David Crook Group FD Presentation 11:40-12:15 Mark Johnstone Group CEO Wrap-up and Q&A 12:15-12:45 Lunch 12:45-14:15 Site Tour 14:15 Day concludes

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4 02/10/2018 BBA Aviation

www.bbaaviation.com

Mark Johnstone

Group CEO

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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5 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

BBA Aviation team present today

Mark Johnstone, Group CEO David Crook, Group FD Kate Moy, Head of IR & Comms Maria Garton, Group General Counsel Gareth Hall, Ontic President Tony Lefebvre, Signature COO Shawn Hall, Signature CCO David Blizzard, Company Secretary Matthew Pritchard, Ontic Cheltenham site director Gareth Blackbird, Ontic FD Jen Chase, Group FC Eric Hietlela, SVP ops, Signature Western region

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6 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Purpose of CMD

Strategy to Capture Growth Growth Opportunities Strengths & Competitive Advantages Access to Senior Management

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7 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

BBA Aviation – our investment case

Clear market leadership positions in end markets with long-term structural growth drivers Significant barriers to entry underpin sustainable competitive advantage Low fixed cost base with flexible cash investment requirements Multiple organic and inorganic growth opportunities across Signature and Ontic Attractive financial model with strong free cash flow generation

1 2 3 4 5

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8 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Growth and Value Creation

Fortified Network & Expanded Portfolio Operational Efficiency & Process Improvement Technology Solutions for Customers Improved Customer Experience Data Empowered Decision Making

Focused strategic goals to drive growth and value creation

1100 10110 00110 1010

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9 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

BBA Aviation portfolio

Signature

ROIC=12% # 1 Market Position Unrivalled global network – 400+ locations Long leaseholds >17 years $1.6bn sales / $330m OP (2017) Real Estate platform for non-fuel growth

Ontic

IP controlled rights 3 locations $209m sales / $53m OP (2017)

ERO

OEM approved ERO provider 14 locations ROIC<5% $513m sales / $12m OP (2017)

Asset held for sale

#1 licence partner of OEMs Diversified product portfolio ROIC=15%+ Proven management team EPIC +$400m of sales Proven management team Firstmark + $27m of sales Market position #2

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10 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

BBA Aviation – a focussed aviation services company

86% 14% 89% 11% 88% 12% 88% 8% 4%

Signature revenue Ontic revenue Signature OP Ontic OP B&GA Commercial Military North America Rest of World

2017 revenue / underlying OP splits by business, market and geography

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11 02/10/2018 BBA Aviation

Signature Flight Support

www.bbaaviation.com

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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12 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Total US airports US business jet airports Signature US FBOs Total gallons sold in US Signature gallons sold 21,300 3,800 139 813M 277M => 34% share

US FBO market – highly fragmented with further potential to grow market share

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13 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature - #1 position, and in the right locations with untapped long tail

Signature US gallons represent 34% of total gallons in US markets Of the top 100 airports, Signature gallons are 46% of the total Signature network covers 68% of the fuel burn in the top 200 US airports Signature contracted customers account for 39% of gallons sold Signature contracted customers operate c.2,000 aircraft which is 14% of the

  • perational fleet in the US

Thus over 11,000 aircraft we do not have a contracted relationship with => long tail opportunity.

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14 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature – Continuing to Transform the FBO industry => #1 FBO provider

#1 Global FBO Operator and service provider to B&GA industry

Signature 2023…

  • 600+ FBOs
  • Enhanced non-fuel

income

  • Technology leader in

the FBO space

  • Platform for

customers

  • B2C and B2B

Signature Today

  • 199 owned FBOs includes

19 Signature Selects

  • 205 EPIC FBOs plus c.100

unbranded FBOs

  • 18 TECHNICAir locations

EPIC acquired July 2018

  • 205 EPIC branded FBOs
  • c.100 non-branded FBOs
  • QT Pod self fuel technology

Signature 2016

  • Landmark added 62 locations
  • GASAM created
  • 18 Signature Selects

Signature 2012

  • 115 FBOs
  • TECHNICAir 8 locations
  • 3 Signature Selects
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15 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature – Market Drivers

Aircraft Utilisation

Macro Economic Drivers Operational Installed Fleet

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16 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Corporate profits

R² = 0.773

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

  • 500

1,000 1,500 2,000

Business jet hours flown (annual, in 1000s) Corporate profits (billions, USD)

Signature Market Drivers – Macro Economic Drivers

Macro Economic Drivers

R² = 0.857

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

  • 5,000 10,000 15,000 20,000 25,000

Business jet hours flown (annual, in 1000s) GDP (billions, USD)

GDP

Aircraft Utilisation Macro Economic Drivers Operational Installed Fleet

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17 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Long term (25yrs+) through cycle structural growth of 2%+ CAGR

1000 2000 3000 4000 5000 4000 8000 12000 16000 20000 GDP (Billions in 2009 Dollars) FAA Business Jet Flight Hours (Thousands)

US GDP ($bn)

US B&GA Flight Hours and GDP

Macro Economic Drivers

Aircraft Utilisation Macro Economic Drivers Operational Installed Fleet

FAA Business Jet Flight Hours (‘000s)

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18 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Macro Economic Drivers

Aircraft Utilisation Macro Economic Drivers Operational Installed Fleet

Operational Installed Fleet – stable for next 10 years

Over the next ten years, the geographical distribution of the B&GA fleet is expected to remain broadly unchanged

B&GA fleet development by region, 2017-27 [% of global fleet]1)2)

Source: Teal, ACAS, Honeywell, Roland Berger 1) Excludes migration effects; 2) Fleet with unknown operating region excluded from analysis; 3) Asia includes Pacific Rim

2017: 20,100 2027: 22,800 CAGR: 1.3% North America 2017: 4,300 2027: 4,900 CAGR: 1.4% Latin America 2017: 1,600 2027: 1,800 CAGR: 1.5% Middle East and Africa 2017: 3,700 2027: 4,500 CAGR: 2.1% Europe 2017: 2,100 2027: 2,600 CAGR: 1.9% Asia3)

63% 63% 13% 13% 12% 12% 5% 5% 7% 7%

2017 2027 2017 2027 2017 2027 2017 2027 2017 2027

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19 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Macro Economic Drivers

Aircraft Utilisation Macro Economic Drivers Operational Installed Fleet

Part 135 Part 91 Part 91K

Signature Market Drivers - Aircraft Utilisation

Part 91k Fractionals – e.g. Netjets

Flight Hours by Certificate Type

Part 135 Charter –

  • n-demand operators

e.g. Wheels-Up, Vistajet Source: ARG/US based on US market for last 12 months ending Sep 2018 Part 91 Corporate / Private Owner Operators

14% 35% 51%

Flight Hours per Aircraft per year

100 200 300 400 500 600 Part 91K Part 135 Part 91

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20 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Leveraging our Signature network to deliver more value

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation

(incl. real estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

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02/10/2018 BBA Aviation 21

Ontic

www.bbaaviation.com

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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22 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Balanced portfolio and business structured to deliver growth

$235M global business – proforma for Firstmark acquisition

New Spares New OE R&O Military Commercial B&GA Electronics/Avionics Electro/Hydro-Mechanical Engine Comp Other Land Gear 24% 58% 18% 13% 47% 40% 7% 3% 40% 28% 22% Chatsworth, CA Creedmoor, NC Plainview, NY Cheltenham, UK Singapore

Scalable structure and strong product competency enabling growth potential

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23 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Large addressable market for Ontic

In Service Fleets

In Service Aircraft – 156,000 Legacy & Sunset Active Aircraft 38,000

Global Aircraft MRO Spend $153B Component & Engine Spend $40B Legacy Opportunity Space $9.6B aircraft >25Yrs

Rotorcraft Military BG&A Commercial

Huge opportunity for Ontic, significant room for growth

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24 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

High quality earnings through proprietary and sole source positions

Sole Source Revenue Proprietary Revenue

Sole source positions drive long term recurring revenue streams

Non-Prop $2M 1% Prop $207M 99% Non Sole Source $26M 13% Sole Source $183M 87%

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25 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

BBA Aviation – our investment case

Clear market leadership positions in end markets with long-term structural growth drivers Significant barriers to entry underpin sustainable competitive advantage Low fixed cost base with flexible cash investment requirements Multiple organic and inorganic growth opportunities across Signature and Ontic Attractive financial model with strong free cash flow generation

1 2 3 4 5

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26 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

$100-110m (1x depreciation) Capital expenditure Ontic licences M&A opportunities Core dividend – sustainable growth Return to shareholders

Disciplined capital allocation framework – Executing to Plan

Growth and Value Creation

Fortified Network & Expanded Portfolio Operational Efficiency & Process Improvement Technology Solutions for Customers Improved Customer Experience Data Empowered Decision Making

Strategic Growth Initiatives

FCF of $250-300m $30-35m $100-150m c.$140m To maintain 2.5x leverage

1100 101100 011010 10
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02/10/2018 BBA Aviation 27

www.bbaaviation.com

Tony Lefebvre

Signature Chief Operating Officer

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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28 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Leveraging our Signature network to deliver more value

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation (incl. real

estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

Focus areas – detail to follow

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29 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

What is an FBO?

Real Estate Anchor

FBO stands for “Fixed Base Operator”. Signature FBOs provide premium flight support services including:

  • GA Aircraft ground support and fuelling
  • Hangar and office leasing
  • Concierge services
  • De-icing
  • Line maintenance
  • Ground handling for transport-category aircraft
  • Airline fuelling in select markets
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30 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

London Luton

  • #4 busiest B&GA Airport in Europe
  • 13,400 movements p.a.
  • 3 FBOs on the field (2 Signature)

Redevelopment

  • 45 year lease extension
  • $34m redevelopment project
  • New FBO 15% larger with 50% more parking
  • Increased hangarage of 190 square metres

Highlights - Luton FBO

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31 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Teterboro New Jersey (TEB)

  • Busiest B&GA Airport in the world
  • ~142k movements
  • Airport lease through 2035

Signature West Signature East Signature South

  • Signature - 3 FBO facilities
  • 5.2 acres aircraft ramp
  • 80k sq ft hangars
  • 15k sq ft office / shop space

Highlights - Teterboro FBO

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32 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature Select Signature EPIC

The Signature FBO Network

Opportunities to:

  • Harmonise the branding and store fronts
  • Transition to a single loyalty programme
  • Leverage common technology and customer data management
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33 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

The world’s largest FBO network

Geographic base locations FBO Locations

180 70 30 29 17 14 205

Signature Atlantic Million Air Jet Aviation Sheltair Tac Air

Operated Epic Select

19

Select EPIC

Signature EPIC Select

180

Signature EPIC

205 19

Select

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34 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Not just the most dots on a map…but the right dots on the map

  • FBOs at 37 of the top 50 US General

Aviation markets by flight count

  • including all 10 of the top 10
  • Industry leading network relevancy
  • Large scale infrastructure and

facilities capable of handling high volume operations up transport category aircraft

  • Exclusive presence in markets

Locations # of operations in 2017 % of total US movements Teterboro (TEB) 141,865 3.7% Westchester County (HPN) 61,958 1.6% Dallas (DAL) 58,955 1.6% Washington (IAD) 57,176 1.5% Las Vegas (LAS) 51,768 1.4% Van Nuys (VNY) 51,424 1.4% Palm Beach (PBI) 50,440 1.3% Houston (HOU) 50,415 1.3% Chicago (MDW) 47,968 1.1% DeKalb-Peachtree (PDK) 41,372 1.1% Total top 10 US FBOs 613,341 16.2%

Unmatched Network

Signature is at top 10 B & GA airports

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35 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature - the most relevant network in the FBO space

Relevancy

68% 38% 19% 9% 6% 5% 5% 1%

Signature Flight Support Atlantic Jet Aviation Million Air Ross TAC Air Sheltair Cutter

Network relevance: FBO presence at top 200 US FBO locations by fuel burn

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36 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

17+ years average remaining term

Typical FBO Minimum Standards

  • Experienced operators
  • Large initial investments
  • Required offering of non-fuel services such as aircraft maintenance or charter
  • Fuel farm infrastructure
  • Commercial Fuelling
  • Maintenance
  • Other services

FBO network secured with long term agreements

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37 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature network grows to over 400 locations with EPIC…

Asset-lite network extension

205

EPIC Locations

1. Network - 205 EPIC branded locations plus c.100 unbranded locations 2. Credit Card - Signature and EPIC fuel purchasing cards

  • Options to expand

3. Military Defense Logistics Agency (DLA) - Extensive Experience 4. Procurement - Over 500 million gallons of combined buying power with Signature

  • Allows us to move upstream

5. Technology - More than 1600 Self- fuelling stations – product differentiation with an alternative way to support

1600+

Self Service Pods

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38 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Delivering personalised customer experiences

Improved Customer Experience

Team members

  • Delivered through highly trained service professionals
  • New tools and flexibility to support the customer’s journey

Technology

  • CRM database provides team with customer preferences
  • Options for customers to do business with us the way they want

Facilities

  • Speed - 96% of passengers spend less than an hour with us
  • Efficiency - upgraded facilities and ramps to move quickly in and out
  • f the FBO

Amenities

  • High speed internet, business facilities, amenities and concierge

services

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39 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Moving the business forward with investments in technology

Technology solutions for customers Data empowered decision making

Reduce

65K+

reconciliations

1100 10110 00110 1010

New Global FBO management system…

  • Invested $10M in purpose built FBO point of sale and reporting system
  • Simplified interface – significantly reduces employee training time
  • Visibility to labour efficiency and productivity
  • Enhanced data on customer behaviour and preferences

From 2,400 to just over 100 total products Improve over

1M

transactions (annually)

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40 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Significant growth opportunities to leverage our assets

Focus areas – detail to follow Focus Area

Flight

Credit card Lavatory/ water Catering Cleaning De-ice Spare aircraft Maintenance

Aircrew

Airline Rental car Hotel

Real estate

Badging/ ramp access Hangars Co-branded club Advertising Offices

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41 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

San Jose – attractive new hangar development

San Jose (SJC) – Third party funded Capital intensive hangar development & funded by our customers; secures airport lease through 2063

  • Satisfies ~$30m capital investment lease
  • bligation
  • Will generate incremental property

management revenue & fuel sales margin

Real Estate

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42 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Real Estate

Teterboro – significant pipeline of hangar development

Teterboro (TEB) - Wetlands development Only available development land left at TEB within Signature's leasehold

  • Two parcels to develop
  • Shopping the development now – high interest by

Corporates and HNW individuals

  • Requires handling and fuelling to be done by

Signature

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43 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Community Engagement

Signature involved in the community local and national level

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44 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

  • Paramount to our customers
  • Everything we do has safety as our first priority

SAFETY

  • World class people trained to deliver personalised customer experiences

.

PEOPLE

  • Delivering individualised customer experiences

.

REAL ESTATE

  • Speed and efficiency in everything we do for our customers
  • Technology enabled operations

OPERATIONAL EFFICIENCY

  • Global portfolio of long term assets in the locations where customers want to fly

CUSTOMERS

Building a long term sustainable operating platform

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02/10/2018 BBA Aviation 45

www.bbaaviation.com

Shawn Hall

Signature CCO

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

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46 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Leveraging our Signature network to deliver more value

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation (incl. real

estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

Focus areas – detail to follow

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47 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Three focus areas will drive increased performance from core revenue

Core revenue streams

Formal network agreements

  • 50% of revenue under commercial agreement
  • Contracts anchored to loyalty and volume
  • Contract management

Pricing optimisation

  • Central pricing engine in place beginning of

Q4FY18 to automate manual processes

  • Allows for greater management of ~65% of

revenue base (incl. demand-based pricing) Alignment with customer segments

  • Four behavioral segments identified
  • Commercial group aligning Marketing, Sales

and Revenue Management to segments

1100 10110001 101010

Handling Real estate Fuel Other

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48 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Deeper customer understanding enables more effective go to market

Prestige Commercial Efficiency Value

FAA segments in SFS network1 Behavioral filter

  • General characteristics
  • Seeking luxury travel experience
  • Low utilisation
  • Fly for revenue
  • High utilisation
  • Focus on passenger time efficiency
  • High utilisation
  • Price sensitive
  • Low utilisation

Behavioral segments in SFS network1

Part 91 (owner operator) Part 135 (charter) Fractional

Prestige Commercial Efficiency Value

1 SFS transaction data - % of US revenue
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49 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Customer size (annual gallons) Customer loyalty Base market attribute Competitive region Order size (3 tiers)

300K+

potential pricing guidance combinations!

Product Customer program

=

Network scale presents pricing challenge (and opportunity)

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50 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

  • Extract data using a BI Tool
  • Normalise Data

Data Preparation

  • Split data into market segments

Segmentation

  • Estimate the market price in each segment

Market Price

  • Make price adjustment where advantageous.
  • Fix any broken pricing rules

Optimisation

  • Predict the financial impact
  • Measure the results once prices are live in-market

Measure Impact

  • Estimate Price/Volume relationship in each segment

Price Sensitivity

Signature leveraging technology in pricing to capture incremental value

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51 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Scale and location create significant non-fuel revenue opportunities

Focus areas – detail to follow

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation (incl. real

estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

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52 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature’s position at centre of B&GA transactions underpins growth

Trip/Flight planners Operators Spare aircraft Catering Maintenance providers Tenants Cleaning Hotel Rental Car Car Service

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53 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Non-fuel revenue opportunities

Focus areas – detail to follow Focus Area

Flight

Credit card Lavatory/ water Catering Cleaning De-ice Spare aircraft Maintenance

Aircrew

Airline Rental car Hotel

Real estate

Badging/ ramp access Hangars Co-branded club Advertising Offices

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54 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Opportunity with Signature / Epic credit card now in-house

Context and opportunity

Signature’s existing credit card supplied by Epic Signature benefits

  • Cost savings (transaction fee)
  • Revenue generation
  • Customer stickiness (incl. tie to Loyalty programme)

Customer benefits

  • Simplified/streamlined billing for all flight needs (1

bill vs. 10-15 invoices)

  • Single card across 463 combined SFS/Epic locations

(49 states and 28 countries)

1100 10110001 101010
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55 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Deeper penetration of branded fuel card worth $4-8M

  • $1.5B in SFS revenue
  • 25% penetration

(current penetration in Epic network)

  • Standard rates and fees

Opportunity assumptions Split of fuel revenue (present) Split of fuel revenue (future)

Direct Bill Other Card A Card B Card C Card D Card E Direct Bill Other Cards A-E

…Incremental value possible with broader use Signature card

Source: SFS transaction data

Signature card Signature card

$4-8M underlying

  • perating profit
  • pportunity
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56 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Pivoting network advertising worth $3-6M and indirect benefits

Key passenger stats 1.7M1

  • Avg. net worth

Annual passenger volume

  • Avg. annual

discretionary income

$67M – 1.5B2 $728K – 11.8M3 Summary of benefits

  • Increase from ~$1M
  • perating profit

today by focusing

  • n passengers and

national/spot contracts

  • Elevated passenger

experience level

  • Stronger luxury

brand affiliation

1 NBAA, SFS operations data; 2 Jet Traveler Report 2018; 3 Wealth-X 2015 UHNWI Luxury Spend

$3-6M underlying

  • perating profit
  • pportunity
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57 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Opportunities exist to drive growth through new services and asset utilisation

Focus areas – detail to follow

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation (incl. real

estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

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SLIDE 59

58 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Opportunity exists to monetise services provided to passengers

Flight

Credit card Lavatory/ water Catering Cleaning De-ice Spare aircraft Maintenance

Aircrew

Airline Rental car Hotel

Real estate

Badging/ ramp access Hangars Co-branded club Advertising Offices

Passenger

Security Concierge Hotel Elite Black car

Focus Area

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SLIDE 60

59 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature positioned to satisfy demand for differentiated airline experience

Growing wealthy population Demand for differentiated airport experience Existing real estate and know how

Source: JD Power; Capgemini Financial Services Analysis, 2018

  • Airport accessibility, check-in/baggage, and security

check key airport rating factors

  • Near 100% overlap with hubs of largest US airlines
  • Existing experience in providing differentiated level of service
  • Proven Elite concept (EMEA and Caribbean)

CAGR 2010-16 Growth 2016-17 7.4% 7.3% 7.2% 11.2% 10.4% 9.4% $30m+ $5-30m $1-5m Description Ultra-HNWI Mid-tier Millionaires Millionaires next door

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60 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Elite provides private jet experience through airline during departure…

Greeting Light service Security1 Airliner boarding Private jet boarding

Departure

1 Security requirements vary across locations

Luxury shuttle

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61 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

…and arrival

Private jet deplaning Luxury shuttle Border/ Customs Luggage Airliner deplaning

Arrival

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SLIDE 63

62 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Beyond right real estate, key by-airport needs in place

Location A Location B Location C Location D Location E Location F Location G Badged Employees

✓ ✓ ✓ ✓ ✓ ✓ ✓

24/7 Staffing

✓ ✓ ✓ ✓ ✓ ✓

Security Cameras

✓ ✓ ✓ ✓ ✓ ✓ ✓

Airside Access

✓ ✓ ✓ ✓ ✓ ✓ ✓

Private Lounge

✓ ✓ ✓ ✓ ✓ ✓

Conference Room

✓ ✓ ✓ ✓ ✓ ✓ ✓

Airport Approved Vehicles

✓ ✓ ✓ ✓ ✓ ✓ ✓

Customs & Immigration

On Airport On Site On Site On Site On Site On Airport On Airport

Long Term Parking

On Site Off Site On Site On Site Off Site Off Site Off Site

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63 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Elite worth $5-10M in underlying operating profit

50M/ year1 $500- $1.5K 0.10%3 5M/ year2

Passengers 1st Class Elite

1 Commercial airline traffic in average target airport 2 Assumed 10% First Class traffic 3 Assumed daily capture

5-10 FBOs

$5-10M OP

  • pportunity
slide-65
SLIDE 65

64 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Signature focused on new ways to influence upstream decisions

Operators

Network relevance Influence upstream decisions Tech enabled service delivery

Passengers

Brand awareness Differen- tiated experience Influence upstream decisions Loyalty based pricing Hub of aviation needs Ease of doing business

Traditional focus area New focus area Detail to follow

All air travel needs Incentivise decision maker

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SLIDE 66

65 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Timing Signature moving to influence upstream FBO decisions… Method to book FBO Historical focus

Detail to follow

Advance Commercial agreement Trip / Flight planning Charter booking Pre-takeoff / in-flight / post-landing Real-time

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SLIDE 67

66 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Passenger requests flight Aircraft arrives at FBO Flight secured

Sample flight timeline …by exploring relationships with upstream enablers

Flight/Trip planned Service providers notified D-10 D0 D-9 D-3 D-1

3rd Party trip planners Operator dispatcher Charter broker Flight planning tools

Key enabler(s) to step

Options to move upstream

  • Equity investment
  • Commercial agreement
1100 10110001 101010
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SLIDE 68

67 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Leveraging our Signature network to deliver more value

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation 1 2 3 4

Pricing optimisation Credit card Elite

Drop through

>50% >50% >50% Advertising

(1-2 yrs) (2-4 yrs) (2-5 yrs) Underlying operating profit ($M)

~10 7-14 5-10

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SLIDE 69

02/10/2018 BBA Aviation 68

www.bbaaviation.com

Gareth Hall

Ontic President

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

slide-70
SLIDE 70

69 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Overview of Ontic presentation

What we do Competitive advantage Historical Performance Future Growth

1 2 3 4

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70 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

How does Ontic create and capture value?

Pedigree Availability Value

OEM design & quality Obsolescence management OEM regulatory approvals Exceptional customer service Supply chain specialist Fleet knowledge demand forecasting Long term product and service provision

Ensuring availability of high quality products and services to our customers creates significant value

OEMs trust Ontic to meet the needs of the long term customers

Value to OEM and to “Our Customer” Meet the needs of ‘shared’ customers Ensuring legacy aircraft remain flying Prices reflect the value delivered

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71 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Value creation through supply chain execution - GTSU Safran Licence

Licence Summary:

  • Product: Gas Turbine Starter Unit
  • Platforms: AV8B
  • Customers: US Marines
  • Service Life: 2028
  • Cold supply chain

Fleet readiness record levels and strong investment returns Exceeding Expectations:

  • Complex, low yield supply chain re-engaged
  • Customer relationship established following

expiry of incumbent support (Boeing HISS)

  • Record parts availability achieved. Highest

performing supplier on the AV8B programme

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SLIDE 73

72 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Balanced portfolio and business structured to deliver growth

$209M global business - Revenue mix

New Spares New OE R&O Military Commercial B&GA Electronics/Avionics Electro/Hydro-Mechanical Engine Comp Other Land Gear 24% 58% 18% 13% 47% 40% 7% 3% 40% 28% 22% Chatsworth, CA Creedmoor, NC Plainview, NY Cheltenham, UK Singapore

Scalable structure and strong product competency enabling growth potential

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73 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

How do we expand the product portfolio?

Do the parts require to be replaced or repaired?

3 phase assessment lense:

Intellectual Property Platform Aftermarket Need

Trusted, long term partner with major aviation OEMs

Drawings Complex, bespoke test equipment Knowhow Scale – number of active planes Longevity – how long the aircraft fleet is expected to remain active

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SLIDE 75

74 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Why do OEMs choose to licence product lines?

Ontic recognised as a trusted, long term partner

  • Focus on new aircraft platforms
  • Products no longer core to strategic focus
  • Decreasing volume with sporadic demand
  • Products utilised on maturing or declining fleet
  • Product support challenges
  • Contract restrictions prevent desired returns
  • Footprint / capacity challenges
slide-76
SLIDE 76

75 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

160 Licences signed, key to success are Ontic’s strong OEM & customer relationships

OEM Partners Key Customers

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SLIDE 77

76 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Complex carve outs – GE Aviation Systems Fuel Measurement 2012

Acquisition summary:

  • Deal completion: May 2011
  • Total investment: $65M
  • Platforms: B777, A320, Typhoon, Hawk
  • Customers: Boeing, Airbus, BAE Systems, Airlines
  • Markets: Civil OEM / Airline MRO / Military

Challenges and opportunities:

  • Establishment of UK footprint
  • Transfer 50 members of staff (TUPE)
  • System level responsibility – 777 & A320
  • High volume production and aftermarket spares/repairs
  • Execution of fleet wide upgrade programmes
  • Developed infrastructure to support licence growth

Trusted partner, strong continuing relationships

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SLIDE 78

77 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Creating trust and confidence through execution and delivery

Complex carve outs - GE Legacy Avionics 2017

Acquisition summary:

  • Investment: $61.5M acquisition
  • Investment: $4M capital
  • Return: $9m Annual EBITDA
  • Platforms: B737, Hawk, AW101, C130
  • Customers: BAE, Boeing, Leonardo
  • Markets: 74% Military / 26% Civil

Transition challenges:

  • Transfer 83 members of staff (TUPE)
  • Facility enhancements:
  • Cleanroom
  • Temp & humidity controlled workshop
  • Specialist process areas
  • Rare skills and demographic challenges
  • High volume of technically complex parts
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SLIDE 79

78 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Our People – creating and driving value

Our people are:

  • Proud to work at Ontic – Top quartile engagement
  • Committed to a future career with Ontic
  • Keen to develop and undertake new opportunities
  • Thriving in an entrepreneurial culture

We invest in our communities

  • Participation in youth employment programmes
  • Employee led engagement programmes
  • Promote STEM careers and careers in Aviation

Engaged global team delivering exceptional results

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SLIDE 80

79 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

OEM Transition to Maturity Non-Core & Legacy Products

TIME DEMAND Authorised Legacy Support

OEM Content

Unauthorised PMA Consolidators Distributers & 3 PL’s

NICHE

50+YRS

Ontic is the market leader in its space

R&D GROWTH MATURITY SUNSET

Ontic Effect

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80 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Large and attractive opportunity space

In Service Fleets

In Service Aircraft – 156,000 Legacy & Sunset Active Aircraft 38,000

Global Aircraft MRO Spend $153B Component & Engine Spend $40B Legacy Opportunity Space $9.6B aircraft >25Yrs

Rotorcraft Military BG&A Commercial

Huge opportunity for Ontic, significant room for growth

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SLIDE 82

81 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Intellectual property provides significant barriers to entry

Sole source revenue Proprietary revenue

Sole source positions drive long term recurring revenue streams

Non-Prop $2M 1% Prop $207M 99% Non Sole Source $26M 13% Sole Source $183M 87%

slide-83
SLIDE 83

82 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages 50 100 150 200 250 300 Current Year 2019 2020+ Total Order Book Value 2018.10 Order Book Known Volume

The portfolio provides high levels of future revenue visibility

Portfolio allows a significant forward order book to be maintained Ontic firm orderbook + order run rate

  • Total backlog

$270M

  • Firm orders

$173M +

  • Order run rate,

‘known volume’ $60M

  • $130M of 2019

revenue booked

270 80 130 60 57 103 50 210 27 30 60

slide-84
SLIDE 84

83 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

  • Portfolio of 160 licences with 6000 products
  • Incumbency value very high
  • Long life platforms
  • All licences have renewal options
  • 100% success rate at licence renewals

Secure long term positions on platforms with significant future lifespan

Portfolio assures access to long term attractive and visible revenue streams

>10 yrs. with renewal options $31.6M 15% <10 yrs. with renewal options $45.4M 22% Owned or Perpetual $132.0M 63%

Licence Portfolio - 2017 $m Revenue

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84 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Disciplined investment approach key in executing profitable growth

Strong growth performance & future potential

  • Aftermarket focus
  • IP protected products
  • Sole Source positions
  • Long term revenue streams
  • Large ‘legacy’ market
  • Pipeline of opportunities

46 168 209 13 48 63

  • 50

100 150 200 2008 2013 2017

29% 28%

Ontic Revenue & EBITDA

Revenue EBITDA

30%

slide-86
SLIDE 86

85 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Licence/Product Line opportunity funnel

EXPLORATORY EVOLVING ACTIVE NEGOTIATION SIGNED

UTAS Q4 2017

  • Disciplined investment

approach

  • Deal gestation period often

>1year

  • Average of 1 in 5
  • pportunities converts
  • Dedicated teams in place in

US and UK

  • Well positioned to deploy

$35m/annum on value creative deals 32 deals closed since BBA acquisition of Ontic, average multiple 5-8x

HONEYWELL Q1 2018 FIRSTMARK Q4 2018 WOODWARD Q3 2018 ESTERLINE Q4 2017

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SLIDE 87

86 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Acquisition of Firstmark Corp – Platform for growth

Growth opportunities, strong market positions with stable recurring revenue Transaction overview

  • $27m annual revenue generating c $8.5m EBITDA
  • IP protected aftermarket portfolio
  • 2 US East Coast locations

Growth

  • Growth through capture of legacy military IP
  • Pricing potential through additional value creation for customers
  • Capacity - capable and experienced management team

Barriers to entry

  • Complex aftermarket parts – intellectual property held
  • The key platforms served are considered ‘sweet spot’ (F15, F16, F18, KC135, C130)
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SLIDE 88

87 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Execute on opportunity space and deliver

Market Intelligence Growth Optimisation

  • Platform
  • Pricing
  • Geographic penetration
  • Expanded platform focus
  • Deepening OE relationships
  • Sourcing
  • Footprint
  • Continuous improvement

Double EBITDA from 2016 by 2021 – Management executing to plan

Strategy execution delivering growth to $100m of EBITDA

  • Channels
  • Products

Data Analytics that drive our decision making

  • Ensure continued pipeline to

deploy capital

  • Provides visibility into platform/

market opportunities and risk

  • $35M of annual investment
  • Targeted M&A e.g. Firstmark
  • Drive value from existing

portfolio 3 PILLARS OF STRATEGY

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SLIDE 89

88 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Summary

  • Licence or acquire IP
  • Legacy aftermarket space
  • Ensure availability of parts

and service

  • Sole source positions
  • OEM relationships
  • Integration capability
  • Supply chain proficiency
  • 32 licence & M&A deals

signed

  • Revenue growth from

$46M to $209M

  • EBITDA margins of 30%+
  • Active and extensive pipeline
  • f opportunities
  • Platform & Market analysis

tools

  • Scalable organisation ready to

execute on future growth

What we do Competitive advantage Historical performance Future growth

1 2 3 4 Market leading position, strong value creation and significant future opportunity

slide-90
SLIDE 90

02/10/2018 BBA Aviation 89

www.bbaaviation.com

David Crook

Group FD

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

slide-91
SLIDE 91

90 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

Operating model built on strong foundations

17 18 18 19 18 18 17 2012 2013 2014 2015 2016 2017 2018

Foundation

Ontic

Foundation

US FBO long leases Sole source revenue Proprietary revenue

Non-Prop $2M 1% Prop $207M 99% Non Sole Source $26M 13% Sole Source $183M 87%

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SLIDE 92

91 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

Flexible operating model

25% 75%

  • 20.0

40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 2018 guidance FBO/Hangar dvpmt FBO Maintenance Ontic ERO Other

$110m Flexibility

Capital Expenditure Flexible Cost Base

Flexibility

Fixed costs - Leases &

  • ther

Variable costs - Fuel & labour

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SLIDE 93

92 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

Debt Maturity Profile

Debt facilities that support growth and long-term nature of core assets

  • Leverage range set at 2.5-3.0x on a covenant basis

(2.6x at June 2018)

  • $650m unsecured RCF refinanced in H1 2018, expiry

March 2023

  • In April 2018 issued our inaugural $500m senior

unsecured notes due 2026 at 5.375%

  • Proceeds used to repay Facility B acquisition debt

and maturing US PP notes

  • Facility C acquisition debt of $450m to be refinanced

by 2019 (matures 2020)

  • Weighted average cost of debt c.5%

$m

100 200 300 400 500 600 700 800 2018 2019 2020 2021 2022 2023 2024 2025 2026 RCF Usage Term Debt Usage Bond USPP RCF Headroom

Headroom of $618 m as at 30 June 2018

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93 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

$100-110m (1x depreciation) Capital expenditure Ontic licences M&A opportunities Core dividend – sustainable growth Return to shareholders

Disciplined capital allocation framework – Executing to plan

Growth and Value Creation

Fortified Network & Expanded Portfolio Operational Efficiency & Process Improvement Technology Solutions for Customers Improved Customer Experience Data Empowered Decision Making

FCF of $250-300m $30-35m $100-150m c.$140m To maintain 2.5x leverage

1100 101100 011010 10

Strategic Growth Initiatives

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94 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Disciplined capital appraisal based on ROIC

Screening $m Rationale 12% ROIC threshold

St Thomas FBO (49% share completed) 9 Arrivals/departures on the field. Length of unexpired lease term. No of FBOs

  • n the field. Network relevance

EPIC (Completed) 88 Franchise network. Card programme. Broader data capture. Access to direct fuel procurement Ontic licences (Completed) 22 High IP content. Sole source rights. Fleet size and identifiable aftermarket Firstmark (Completion late in 2018) 97 High IP content. Sole source rights. Fleet size and life cycle. IP development

  • pportunities. Expandable footprint

ROIC calculated by dividing underlying operating profit by net assets, at the average exchange rate for the last 13 months’ spot rate. The net assets for ROIC are calculated by averaging the net assets over the last 13 months.

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95 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation 1 2 3 4

Pricing optimisation Credit card Elite

Drop through

>50% >50% >50% Advertising

(1-2 yrs) (2-4 yrs) (2-5 yrs) Underlying operating profit ($M)

~10 7-14 5-10

Leveraging the Signature network for outperformance

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96 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Summary

  • Strong and flexible operating model

representing significant barriers to entry

  • Multiple organic and inorganic growth
  • pportunities support Free Cash Flow

generation

  • Balance sheet in place to support strategy for

growth

  • Disciplined capital appraisal policy
  • Shareholder returns in alignment with our

transparent capital allocation policy.

slide-98
SLIDE 98

02/10/2018 BBA Aviation 97

www.bbaaviation.com

Mark Johnstone

Group CEO

Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

slide-99
SLIDE 99

98 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

BBA Aviation – our investment case

Clear market leadership positions in end markets with long-term structural growth drivers Significant barriers to entry underpin sustainable competitive advantage Low fixed cost base with flexible cash investment requirements Multiple organic and inorganic growth opportunities across Signature and Ontic Attractive financial model with strong free cash flow generation

1 2 3 4 5

slide-100
SLIDE 100

99 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

Leveraging our Signature network to deliver more value

  • Market leadership
  • Competitive strengths
  • Flexible operating model
  • Service enhancements
  • Network agreements
  • Alignment with customer

segments

  • Pricing optimisation (incl. real

estate)

  • Flight related

(e.g., catering, credit card, maintenance)

  • Aircrew

(e.g., rental car, hotels)

  • Real estate

(e.g., hangar, advertising)

  • New passenger services

(e.g., Elite, black car, hotels)

  • Customer stickiness
  • Aircraft operator loyalty
  • Passenger loyalty

Organic Growth Core revenue source optimisation Non-fuel revenue growth New services and asset utilisation

1 2 3 4

slide-101
SLIDE 101

100 Signature commercial Ontic Overview Strengths & Competitive Advantages Signature operations

Building to a $100m EBITDA by the end of 2021

  • Licence or acquire IP
  • Legacy aftermarket space
  • Ensure availability of parts

and service

  • Sole source positions
  • OEM relationships
  • Integration capability
  • Supply chain proficiency
  • 32 licence & M&A deals

signed

  • Revenue growth from

$46M to $209M

  • EBITDA margins of 30%+
  • Active and extensive pipeline
  • f opportunities
  • Platform & market analysis

tools

  • Scalable organisation ready to

execute on future growth

What we do Competitive advantage Historical Performance Future Growth

1 2 3 4

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SLIDE 102

101 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

BBA Aviation – primed for growth

  • 1. Simplified portfolio
  • 2. Capital discipline => pre-tax ROIC >12%
  • 3. Enhanced leadership with active management
  • 4. Expand platform positions through connections to customers
  • 5. Further opportunities for value creation from our infrastructure
  • 6. Signature flight path to deliver 250bps mid term through cycle outperformance
  • 7. Ontic grows to a $100m EBITDA business by end 2021.
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SLIDE 103

102 Signature operations Signature commercial Ontic Overview Strengths & Competitive Advantages

$100-110m (1x depreciation) Capital expenditure Ontic licences M&A opportunities Core dividend – sustainable growth Return to shareholders

Driving shareholder value – Enabling Flight and Expanding Horizons

Growth and Value Creation

Fortified Network & Expanded Portfolio Operational Efficiency & Process Improvement Technology Solutions for Customers Improved Customer Experience Data Empowered Decision Making

FCF of $250-300m $30-35m $100-150m c.$140m To maintain 2.5x leverage

1100 101100 011010 10

Strategic Growth Initiatives