2023 Second Quarter Results

Avolon delivers 14% increase in lease revenue to US$613 million in Q2

DUBLIN--(BUSINESS WIRE)--Avolon, the international aircraft leasing company, announces results for the second quarter (Q2) of 2023.

2023 SECOND QUARTER | FINANCIAL HIGHLIGHTS

INCOME STATEMENT (US$M)	Q2 2023	Q2 2022	CHANGE	CHANGE%
Lease Revenue	613	539	74	+14%
Operating Cashflow	371	305	66	+22%
Net Income	76	8	68	9x
EBITDA	578	486	92	+19%

BALANCE SHEET (US$M)	Q2 2023	FY 2022	CHANGE	CHANGE%
Total Available Liquidity (incl contracted sales)	7,263	5,567	1,696	+30%
Total Assets	29,985	30,796	(811)	(3%)
Secured Debt / Total Assets	22%	22%	-	-
Net Debt to Equity	2.2x	2.3x	(0.1x)	(6%)

- Strong performance in net income with a 9x increase year-on-year to US$76 million;
- 22% increase in operating cashflow to US$371 million;
- 14% increase in lease revenue year-on-year to US$613 million;
- Raised US$3.4 billion of debt capital in the quarter, including:

• Private offering of US$750 million of senior unsecured notes maturing in 2028;
• US$1.7 billion Term Loan B refinancing with new loan maturing in 2028; and,
• Letter of intent for a US$950 million term financing facility maturing in 2030;

- Total available liquidity of US$7.3 billion, including US$401 million of unrestricted cash, US$6.2 billion of undrawn debt facilities and US$616 million of contracted sales;
- Net debt to equity of 2.2 times, a secured debt to total assets ratio of 22% and US$15 billion of unencumbered assets; and
- Fitch affirmed Avolon’s BBB- rating and improved the rating outlook from Stable to Positive.

2023 SECOND QUARTER | FLEET HIGHLIGHTS

- Executed 31 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
- Entered into letters of intent for the sale and leaseback of 9 aircraft;
- Confirmed order for 40 Boeing 737 MAX aircraft and agreed to order 20 Airbus A330neo aircraft;
- Delivered 5 new aircraft and transitioned 13 aircraft to a total of 10 customers;
- Sold 3 aircraft and executed sale agreements for a further 17 aircraft;
- Entered into letters of intent to place 23 aircraft from our orderbook during the quarter;
- Added 2 new customers, giving a total of 149 airline customers operating in 65 countries; and,
- Ended the quarter with an owned, managed and committed fleet of 875 aircraft, including orders and commitments for 297 fuel-efficient, new technology aircraft.

Andy Cronin, Avolon CEO, commented:

“This was an excellent quarter for Avolon which demonstrates the positive net income and lease revenue trajectory of the business. Our increased trading and sale and leaseback activity, along with placement from our order book at attractive lease rates, will drive our financial performance in the future setting the foundation for long-term profitability.

Our commitment with Boeing for 40 new 737 MAX aircraft and Airbus for 20 new A330neo aircraft reflects our confidence in the future outlook of the industry and our customers’ demand for additional aircraft to meet future growth plans in an undersupplied market.

About Avolon
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is a global leader in aircraft leasing with an owned, managed and committed fleet, as of 30 June 2023 of 875 aircraft. www.avolon.aero