BBA Aviation plc 2017 Interim Financial Report Results for the half year ended 30 June 2017 For further information please contact: David Crook, Group Finance Director (020) 7514 3999 Matt Denham, Investor Relations BBA AVIATION PLC David Allchurch/Michelle Clarke (020) 7353 4200 TULCHAN COMMUNICATIONS A video with Wayne Edmunds, Interim Group Chief Executive, and David Crook, Group Finance Director, is now available on www.bbaaviation.com A live audio webcast of the analyst presentation will be available from 09:00 today on www.bbaaviation.com 1
BBA Aviation plc – Interim Results, 1 August 2017 INTERIM FINANCIAL REPORT FOR PERIOD ENDED 30 JUNE 2017 GROUP Underlying results 1 Statutory results H1 2016 H1 2016 H1 2017 H1 2017 Total 2 Total 2 % Change 3 Continuing Total 2 Continuing Total 2 % Change 3 $m Continuing Continuing Revenue 1,145.5 1,183.7 1,020.6 1,229.4 12.2% 1,145.5 1,183.7 1,020.6 1,229.4 12.2% EBITDA 218.0 217.8 178.6 195.3 22.1% 212.7 212.5 156.3 173.0 36.1% Operating profit 174.9 174.7 135.6 149.6 29.0% 122.9 122.7 62.1 75.4 97.9% Profit/(loss) before tax 143.5 143.3 105.5 119.4 36.0% 91.5 84.7 (153.3) (269.0) Profit/(loss) after tax 117.3 117.1 88.0 100.3 33.3% 84.6 52.5 (129.7) (247.0) Basic adjusted earnings 11.4 ¢ 11.4 ¢ 8.6¢ 9.8¢ 32.6% 8.2 ¢ 5.1 ¢ (12.7)¢ (24.1)¢ /(loss) per share 4 Return on invested 10.7% 10.1% 60bps capital 5 Free cash flow 56.6 91.7 (38.3)% Net debt 5 (1,256.3) (1,335.3) (5.9)% Dividend per share 3.81 ¢ 3.63¢ 5.0% 1. Adjusted performance measures are defined in note 17 2. Total includes discontinued operations 3. % change based on continuing operations for operating performance 4. Statutory measure is basic earnings per share 5. 2016 return on invested capital and net debt are for the full year Highlights Continuing underlying operating profit up 29% to $174.9 million; enlarged Signature network performing well Divisional summary: o Flight Support (86% of continuing Group underlying OP) Organic revenue up 3.2% and operating profit up 13.6%, with strong drop through US B&GA market up 3% in H1 Network contract negotiations with Signature’s largest customers suc cessfully concluded Short-term negative impact on fuel volumes relative to market o Aftermarket Services (14% of continuing Group underlying OP) Operating profit growth of 134% to $26.0m, driven by Ontic Ontic – GE avionics delivering as expected, good contribution from 2016 licence acquisitions ERO – improved operating performance H1 2017 vs H1 2016, stable vs H2 2016 Sale of ASIG for $202m completed 31 January 2017 Statutory continuing operating profit increased by 97.9% in H1 2017 compared to H1 2016 Free cash flow of $56.6 million, de-levered to 2.9x net debt/EBITDA as anticipated (FY 2016: 3.1x on covenant basis) Group ROIC increased by 0.6% points to 10.7% Basic adjusted EPS increased by 32.6% to 11.4¢ Interim dividend increased by 5% to 3.81¢ cents reflecting continued confidence in the G roup’s future growth prospects Wayne Edmunds, BBA Aviation Interim Group Chief Executive, commented: “We are pleased with BBA Aviation’s performance overall in the first half of 2017. Against the background of a US B&GA market that grew 3%, we are making encouraging progress in delivering the benefits of Signature’s unique global network of FBOs. We successfully concluded during the first half of the year negotiations with our largest customers regarding the delivery of our services across the enlarged, market-leading network and believe that the outcome demonstrates Signature’s unrivalled ability to satisfy the needs of its customer b ase. Although we experienced a short-term negative impact on volumes relative to market during the period, Signature’s strong drop through continues to demonstrate our ability to grow underlying operating profit ahead of market growth. In Aftermarket Services, Ontic had a good first half and we are pleased with the contribution of the portfolio of legacy avionics products acquired from GE Aviation at the end of 2016. Ontic continues to have a strong pipeline of growth opportunities. Although ERO continues to be impacted by reduced legacy mid-cabin fixed wing flying, the slight improvement in operating performance seen in the second half of 2016 was maintained in to the first half of this year. In summary, the Board ’s confidence of good growth in 2017 remains unchanged. ” 2
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