Airwork : FY2016 Results Presentation

Airwork Holdings Limited

Full Year 2016 Results Presentation

August 2016

IMPORTANT NOTICE

This presentation contains not only a review of operations, but also some forward looking statements about Airwork Holdings Limited (Airwork) and the environment in which the company operates. These forward looking statements are based on current expectations, and involve assumptions, risks and uncertainties. Airwork's actual results could be affected by a number of factors and accordingly could differ materially. There can be no assurance that any result contemplated in any forward looking statement will be realised and Airwork gives no warranty or representation as to future performance.

Media releases, management commentary, Airwork's 2013 investment statement and other information is available in respect of the company and these contain additional information about matters which could cause Airwork's performance to differ from any forward looking statements in this presentation.

Please read this presentation in the wider context of material previously published by Airwork.

The information in this presentation is in a summary form, and accordingly is not necessarily complete. No representation or warranty is made as to the accuracy or completeness of the information contained. A number of non-GAAP financial measures are used in this presentation due to the fact they are widely accepted financial indicators used by investors and analysts to analyse and compare companies. You should not consider any of these in isolation from, or as a substitute for, the information provided in the consolidated financial statements.

All amounts are in New Zealand dollars unless otherwise stated.

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CONTENTS

• Executive Summary

• 2016 Result

  • Highlights

  • Financial Summary

• 2016 Divisional Review

  • Helicopter Review

  • Fixed Wing Review

  • Operating Cash Flows

  • Capex

  • Net Debt

• Strategy and Outlook

• Conclusion Appendices

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  EXECUTIVE SUMMARY

• Airwork delivers a positive result for the 2016 financial year

  • EBIT growth of 93% in the Fixed Wing division driven by the successful commencement of B737-400 dry leasing contracts announced in FY15

  • Helicopter division EBIT growth of 16% despite continued challenging market conditions in the resources sector

• The result highlights the benefits of Airwork's diversified businesses, global footprint and revenue streams

• The Directors have approved a fully imputed final dividend of 8.0 cents per share. Total annual dividend 17.0 cents per share

• Outlook:

  • Fixed Wing earnings growth from completion of B737-400F programme and new ACMI

    customers

  • Challenges faced by resources sector and repositioning of unleased helicopters may lead to a slowing growth rate or short term decline in Helicopter contribution

  • Expect improvement in Group ROCE

• The Directors would like to acknowledge the significant efforts and dedication of the Airwork team

located around the world who have delivered this result, while overseeing a period of growth and repositioning of assets

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