Air Partner plc Interim Results for the half-year ended 31 July 2016 - PowerPoint PPT Presentation

Air Partner plc Interim Results for the half-year ended 31 July 2016 Mark Briffa, CEO Neil Morris, CFO 1

Introducing Air Partner Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to industry, commerce, governments and private individuals. Air Partner is headquartered alongside Gatwick airport in the UK. The Group’s global platform operates 24/7, from in 20 key gateway cities. Enabled by Air Partner’s Customer First Programme, the Group delivers outstanding and exceptional service to some 14,000 clients across the globe. Clients include six of the G7, and some of the world’s leading employers, corporations, business leaders, stars and HNW individuals. 2

Divisional overview • Flies fewer than 20 people • Charters airliners from 20 to 500 people • Offers a bespoke service or a JetCard • Used for product launches, sports teams • Typical clients include: finance houses, film and conferences COMMERCIAL / entertainment and high net worth PRIVATE JETS • Typical clients include: automotive, sports, JETS individuals entertainment, pharmaceutical • Ad hoc charter, our bespoke on • Cabot Aviation , remarkets commercial demand service aircraft and private jets • JetCard , a private jet card programme with • ACMI (‘wet leasing’) >200 cardholders • • Charters aircraft from Learjets to the giant A world-leading Aviation Safety consultant Antonov 225 • BAINES Specialises in aviation regulation, FREIGHT • Time critical door to door delivery service SIMMONS compliance and safety management • • Typical clients include: goverments, Manages Isle of Man Aircraft Registry, automotive, engineering and energy awarded 10 year contract in April 2016 SUPPORT DIVISIONS 24/7 Operations, Travel Management, Emergency Planning 3

Overview • Strong H1 results, despite terrorism, tour operating, geopolitical uncertainty • Broking and Consulting divisions both performed well • Strategy producing results • Acquisitions fully integrated and contributing • Customer First rolled-out globally and supporting growth (Broking op.profit up 24%) • NED appointments further aligns industry and operational experience with strategy • Interim dividend increased by 10% to 8.1p • Full year outlook: Board remains optimistic 4

Financial highlights July 2016 July 2015 Change Gross Transaction Value (£m) 112.9 110.2 2% Gross Profit (£m) 16.1 12.1 34% Gross margin (%) 14.3 10.9 +340bps Underlying operating profit (£m) 3.1 2.2 36% Underlying operating margin (%) 2.7 2.0 +70bps Underlying PBT (£m) 3.0 2.2 35% Underlying EPS (p) 22.3 17.1 30% Interim Dividend (p) 8.1 7.3 10% Total cash (£m) 24.6 15.0 +£9.6m Net cash excluding JetCard (£m) 5.2 1.4 +£3.8m Underlying relates to continuing operations and excludes non-trading items and non-cash acquisition related costs 5

Operating Highlights Broking Commercial Jets: • Significant sport contracts won for Euros and pre-season Premier League tours • Cabot Aviation successfully remarkets two Boeing 777s for Kenya Airways Private Jets: • Record H1 results • Exceptional UK performance • JetCard utilisation up by 25% Freight: • Good automotive wins Consulting & Training • Good performance and solid contribution • Renewal of Isle of Man Aircraft Registry contract for further 10 years • Successfully won a number of long-term government and corporate contracts 6

Operating profit bridge 275 525 (209) (89) 311 3,054 2,241 HY15 Commercial Jets Private Jets Freight Baines Simmons Corporate Costs HY16 7

Cash flow bridge 524 3,826 (22) 727 (1,741) 419 1,915 (257) 8,406 3,015 Jan-16 NOPAT D&A Net bank Working cap Capex Tax, interest Dividends FX Jul-16 loans (Excl. JCD) & other 8

Gross profit by Product 0% 100% 8% 90% 19% 80% 5% 36% 70% 60% 32% £’m 50% 40% 30% 56% 45% 20% 10% 0% HY15 HY16 • • Strong performances across CJ and PJ Decrease in proportion of gross profit from CJ by 11% • First time contribution from Baines Simmons • Baines Simmons 19% of gross profit • Decrease of 20% in Freight Commercial Jets Private Jets Freight Baines Simmons 9

Gross profit by Region 100% 9% 14% 90% 80% 27% 70% 31% 60% £’m 50% 40% 64% 30% 55% 20% 10% 0% HY15 HY16 • • Strong performance in the UK with gross profit up UK accounted for 64% of gross profit by 58% or by 12% excluding Baines Simmons • Europe and US mix reduced • Europe increased 16% to £4.3m • US down by 12% year on year UK Europe US 10

Operating profit by Product 100% 7% 13% 0% 90% 8% 80% 31% 70% 36% 60% £’m 50% 40% 30% 56% 50% 20% 10% 0% HY15 HY16 • • CJ +18% due to strong UK and Europe CJ remains our largest division • • Outstanding PJ performance, particularly PJ increased to 36% of operating profit the UK • Decrease in Freight of 22% Commercial Jets Private Jets • Encouraging performance at Freight Baines Simmons Baines Simmons 11

JetCard goes from strength to strength 250 JetCard numbers 200 150 Europe US 100 UK 50 0 • Utilisation up by an impressive 25% leading to FY14 FY15 FY16 H117 record H1 performance • JetCard cash balances year-on-year have risen by £2.5m (18%) to £16.1m • The number of JetCards has risen since 31 January 2016 by 9 to 218 – UK 137 (up 9), USA has 50 (down 2) and Europe 31 (up 2) 12

COVER Commercial Jets 12

OIL & GAS AUTOMOTIVE SPORT REMARKETING

Commercial Jets 7.4 2.1 7.3 2.0 7.2 7.1 1.9 7.0 Gross profit 1.8 6.9 Operating profit 6.8 1.7 6.7 1.6 6.6 6.5 1.5 HY15 HY16 • Gross profit increased by 8% to £7.3m • Underlying operating profit increased by 18% to £2.0m • Strong performance in the UK as a result of Sports, Oil & Gas and government work • Automotive and tour operations performing well in Europe • Cabot Aviation has successfully remarketed two Boeing 777s for Kenya Airways • H2 in the US expected to improve 15

Private Jets

ON-DEMAND CHARTER JETCARD CORPORATE CARD

Private Jets 5.2 1.8 5.0 1.5 4.8 1.3 4.6 1.0 Gross profit 4.4 0.8 Operating profit 4.2 0.5 4.0 0.3 3.8 0.0 HY15 HY16 • Record H1 performance with gross profit increase by 17% to £5.1m • Operating profit increased by 56% to £1.5m • Strong performance in the UK through success of Customer First • JetCard success - utilisation up by 25% leading to record H1 result • Solid performance in Europe • US showing signs of improvement 18

Freight

OIL & GAS AIRCRAFT PARTS HUMANITARIAN AID AUTOMOTIVE PARTS TIME CRITICAL DANGEROUS GOODS HIGH VALUE CARGO

Freight 1.0 0.50 0.9 0.8 0.40 0.7 0.6 0.30 Gross profit 0.5 Operating profit 0.4 0.20 0.3 0.2 0.10 0.1 0.0 0.00 HY15 HY16 • Gross profit decreased by 20% to £0.8m • Operating profit decreased by £0.1m to £0.3m • Strong performance in automotive in Europe • Tough comparable: no government aid agency work in period 21

Baines Simmons

CONSULTING TRAINING MANAGED SERVICES

Baines Simmons 3.5 3.0 2.5 2.0 Gross profit Operating profit 1.5 1.0 0.5 0.0 HY16 • Gross profit of £3.0m, representing 19% of the group • Operating profit of £0.3m, equivalent to 10% of the group • Successful contract wins include Isle of Man Aircraft Registry for 10 years, BAE Systems (Typhoon) and a number of commercial airlines • Encouraging performance from Baines Simmons which was acquired in August 2015 24

Summary

Strategic update • Focused on building a world class aviation services group • Delivering tailored and comprehensive aviation solutions to our global customers • Strategy based around three components: Optimise, Enhance and Extend • Good progress made acquiring or investing in complementary capabilities/services that support these three components Optimise Enhance Extend Initiative Customer First Acquisition of Acquisition of Cabot Aviation Baines Simmons H1 result Broking op. profit up 2x Kenya Airways Isle of Man Aircraft 24% Boeing 777s Registry renewal remarketed 26

Outlook • Strong first half performance • Current trading good albeit slowest trading quarter to come • Continue to assess investment opportunities that will enhance or extend our customer services • The Board remains confident that its expectations for the remainder of the financial year will be achieved 27