BBA Aviation enabling flight; expanding horizons March 2017 BBA - PowerPoint PPT Presentation

BBA Aviation ‐ enabling flight; expanding horizons March 2017

BBA Aviation Enabling flight; expanding horizons 2016 – a transformational year Major expansion of Signature ‒ Acquired Landmark Historical 1 Today 2 Aftermarket Services Flight Support Aftermarket Services Flight Support ‒ Unique global network of >200 FBOs 72% 12% 88% 28% 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 Note 2: Based on 2016 financial information 01

BBA Aviation Enabling flight; expanding horizons BBA Aviation today - a focused B&GA service provider 2016 Revenue Splits High quality businesses Aftermarket Services ‒ Market leadership 33% ‒ Unmatched customer relevance Flight Support 67% ‒ Strengthened barriers to entry Enhanced growth prospects RoW 14% ‒ Increased exposure to growing B&GA market ‒ Extended opportunity for outperformance North America 86% Attractive financial characteristics Military 5% B&GA 88% ‒ Low asset intensity and flexible cost base ‒ Strong, resilient through ‐ cycle cash flow Commercial 7% …with accelerated value creation potential 02

BBA Aviation Enabling flight; expanding horizons Market leadership Signature's enhanced leadership position Signature The world’s largest Network relevance: addressable market at top 200 U.S. airports Flight Support fixed base operation (FBO) and line >85 % maintenance network 68 % for Business & General 19 % Aviation (B&GA) users 9 % 38 % Group EBIT 6 % 5 % 5 % 1 % Signature Atlantic Jet Million Air TAC Air Ross Sheltair Cutter Flight Aviation Leading provider of Ontic Support high ‐ quality equipment >13 % and cost ‐ effective Addressable market as measured by fuel burn, source: ARG/US solutions for maturing Top 200 locations according to FAA departures and legacy aerospace Group EBIT Enlarged Atlantic Million Jet platforms with a unique portfolio of IP ‐ protected Network Signature Aviation Air Aviation components and systems Total locations 203 65 29 23 North America 139 65 27 9 Engine Repair A leading independent Sole source locations 63 24 14 1 authorised engine & Overhaul 39 ‡ Top 50 US airports 29 6 7 service provider, with market ‐ leading <2 % positions in small Locations comprise licenses, JVs and fully owned entities and correct as at time of announcement ‡ Adjusted for overlap locations within the top 50 of the respective category shown thrust capacity engine (i.e. where two FBOs on one airport, we count as one location) Group EBIT and rotorcraft overhaul programmes …driving sustainable value through a common vision, mission and values 03

BBA Aviation Enabling flight; expanding horizons Unmatched customer relevance Unique network Signature locations serve both ends of 34 of the 50 most heavily ‐ trafficked city pairs in the USA ‒ 39 Signature locations in top 50 US airports ‒ At 14 of top 20 home bases for business aircraft in USA ‒ Signature presence on 49 of top 50 routes ‒ Key European and ROW B&GA destinations ‒ Global support for customers’ aftermarket needs KBED KBOS KHPN Market leading customer proposition KPWK KTEB KMMU KSFO KMDW KOAK KSJC KCMH ‒ Industry leading service and safety standards KIAD KLAS ‒ Full service support for B&GA – FBOs, MRO, charter, aircraft KVNY KSNA KLAX management, hangarage KPDK KSDL KDAL KFTW KSAV ‒ Network pricing optimises customer cost of flying and secures KAUS KHOU customer loyalty KSAT KPBIKOPF ‒ Strong, extensive customer relationships and knowledge KMIA Type Technical capability Competed Sole Source ‒ IP ‐ protected product knowledge ‒ Efficient and flexible aftermarket processes in state ‐ of ‐ the ‐ art facilities Source: FAA ARG/US April 2016 …Signature US touches 63% of business jet and turboprop fleet each year 04

BBA Aviation Enabling flight; expanding horizons Barriers to entry Scale US FBO Long Leases Average remaining lease term ‒ Over 220 locations on 5 continents ‒ 9.2m sq ft of hangar, terminal and office space in the USA 19 18 18 18 17 17 ‒ Handle >1.4m aircraft movements p.a. ‒ >2,200 turbine engines processed annually ‒ >150 licences for >6,000 parts 2012 2013 2014 2015 2016 2017 Unique network locations on long leases One of the world’s largest aircraft management and charter businesses Trusted brands Licence, adoption process and authorisation IP Highly recognised and valued brands Cross ‐ business opportunities …underpinned by unique real estate and licence portfolio 05

BBA Aviation Enabling flight; expanding horizons Increased exposure to B&GA market Indicator Details US B&GA Flight Hours and GDP ‒ B&GA flying hours continued growth Short Aircraft 20000 Business Jet Flight Hours (000s) Term utilisation 4000 15000 3000 US GDP ($bn) 2000 ‒ B&GA flying closely correlated to corporate Corporate 10000 1000 confidence confidence ‒ SME confidence measures continue to improve 5000 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 ‒ Global B&GA fleet continues to expand Medium Fleet Business Jet Flight Hours (Thousands) GDP (Billions in 2009 Dollars) Term growth ‒ Forecast fleet growth of 3 ‐ 4% CAGR through 2025 Source: GAMA and US Bureau of Economic Analysis ‒ % of second hand fleet for sale and pricing stable Note: 2004 the GAMA survey coverage expanded for turbine airplanes and rotorcraft, accounting for part of the increase in hours flown ‒ Larger aircraft are an increasing proportion of the Fleet US B&GA Aircraft Movements and US Small Business Confidence dynamics fleet, up from 22% to 28% (2005 ‐ 2016) ‒ Higher average age of fleet 15.0% 10.0% 5.0% ‒ Through ‐ cycle growth in excess of GDP Long GDP 0.0% Term ‒ External forecasts of 2.5% flight hours growth p.a. ‐ 5.0% ‐ 10.0% ‐ 15.0% ‐ 20.0% ‐ 25.0% Jan ‐ 08 Jun ‐ 08 Nov ‐ 08 Apr ‐ 09 Sep ‐ 09 Feb ‐ 10 Jul ‐ 10 Dec ‐ 10 May ‐ 11 Oct ‐ 11 Mar ‐ 12 Aug ‐ 12 Jan ‐ 13 Jun ‐ 13 Nov ‐ 13 Apr ‐ 14 Sep ‐ 14 Feb ‐ 15 Jul ‐ 15 Dec ‐ 15 May ‐ 16 Oct ‐ 16 …continued outperformance YOY 12 month rolling change in B&GA aircraft movements % YOY change in Small Business Confidence Source: FAA and Bloomberg 06

BBA Aviation Enabling flight; expanding horizons With longer-term structural growth drivers Business aviation: principally a North American Large US distances vs compact European centres market, created by: ‒ Large distances ‒ Dispersed population centres 723 miles KTEB KSFO KPWK ‒ Lack of intermodal alternatives 1, 635 miles ‒ Retrenchment from point ‐ to ‐ point routes by commercial airlines 2,450 miles KVNY An established market 1,098 miles ‒ c4500 airports and 2700 FBOs (of which 2100 can sell fuel) LHR KHOU 645 miles 218 miles RoW market characteristics are different LBG MUC KMIA ‒ Europe: compact centres; fast intermodal alternatives A worked example Business Commercial Check ‐ in Pittsburgh 0800hrs 0800hrs ‒ South America & Asia Pacific : longer ‐ term opportunities; markets Depart Pittsburgh 0815hrs 0930hrs Connect in Atlanta 1115hrs relatively immature Depart Atlanta 1200hrs Arrive Milwaukee 1000hrs 1430hrs Total time 2 hours 6.5 hours … B&GA a key efficiency and productivity tool 07

BBA Aviation Enabling flight; expanding horizons Extended opportunity for outperformance Proven track record of outperforming market ‒ Historic market outperformance of 200bps at 25% drop through Bigger and better network positioned to capture volume and EBITDA growth Application of operational excellence Broader range of value ‐ added services Cost and scale synergies Growing portfolio of IP protected licences and authorisations Unique and broad technical skill set and knowledge …underpinned by experience, expertise, data and track record 08

BBA Aviation Enabling flight; expanding horizons Attractive financial characteristics Low asset intensity and flexible cost base Flexible Cost Base ‒ Fixed costs c25% / Variable costs c75% 25% ‒ Fuel costs passed through Fixed costs ‐ Leases & other ‒ Flexible labour ‒ Lease costs <10% Signature cost base Variable costs ‐ Fuel & labour 75% Strong cash generation ‒ 75 ‐ 105% cash conversion normal range Positive margin drop through A cash generative business model Capital structure reflecting proven through ‐ cycle 300 200% resilience 150% 200 100% Opportunity for enhanced capital returns 100 50% 0 0% ‒ Progressive dividend policy 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Through ‐ cycle ROIC target >12% Free Cash Flow ($m, Historical Rates) Cash Conversion (%) …years of disciplined investment; focusing on yield optimisation 09

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