Alliance Aviation Services : AQZ - 1HFY22 - Results Presentation

Alliance Aviation Services Limited

Results Presentation

1H FY2022

only9 February 2022 useersonal

use only	Contents
ersonal

Alliance Aviation Services Limited 1HFY2022 Results Presentation

03.	KEY MESSAGES
04.	CONTINUED E190 DEPLOYMENT
	ACTIVITY
05.	FIVE REVENUE STREAMS
06.	OPERATIONAL METRICS
07.	FINANCIAL SUMMARY
15.	DEPLOYING THE E190'S
16.	ROCKHAMPTON HANGAR
17.	GROWTH STRATEGY
18.	OUTLOOK
20.	GROWING CLIENT CONTRACT BASE
21.	COMMODITY EXPOSURE
22 & 23.	CONTRACT AND WET LEASE FOOTPRINT
24.	OPERATIONAL EXCELLENCE

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only	Key
Messages
Alliance Aviation Services Limited announces a
	half-year result which includes:
use	• Robust and increasing FIFO earnings;
•	Strong underlying operating cash flows;

• Record flight hours with increases in contract and wet lease hours;

CASH

Underlying profit	Maintain cash generation
which has funded growth	Revenue from operations
before tax of
	of $171.2m, up 11%
$20.7.m	1

• COVID-19 has impacted E190 deployment resulting in a delay in revenue generation. Significant wet lease flying operations to

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commence in April 2022; and

• Continued expenditure to prepare Alliance for a major increase in revenue and operations.

8 x E190 aircraft added to the fleet - Fleet total, 562

Contracted wet lease hours increased but tempered by COVID19

GROWTH

Flight hours up 9% to

20,843. Growth to

continue

ersonalAlliance Aviation Services Limited 1HFY2022 Results Presentation

1. Underlying PBT and underlying cash flow are a non-statutory measures and used for the purpose of assessing the performance of Alliance during the year against comparable measures in the previous year.
2. This number includes two E190 aircraft currently on dry lease.

3. Subject to the impacts of COVID-19 on domestic capacity demands.	3

	Continued
	Activity		Status
only
E190	Contracted wet lease	Qantas has wet lease options for 18 E190 aircraft (10 of which have
activity		been exercised).	COVID-19 has impacted negatively on the planned
			utilisation	and	deployment	of these aircraft	and the forecast
	Deployment			by April 20221, with the additional eight aircraft options to be exercised
				significant revenue generation has extended by six months from
	Activity			original expectations. It is forecast that all 10 aircraft will be deployed
	E190 recruitment	Staff already employed to deliver our E190 fleet:
use				between April and October.
The first half of the 2022 Financial			78 E190 pilots
			77 E190 cabin crew
	Year has continued to be the
			36 E190 licensed engineering staff
	preparatory phase for future
	Reinforcement of the	Continued	to develop and	communicate our	strong culture and
	substantial growth. The deployment
	Alliance values	corporate objectives of safety, operational excellence and financial
	of the E190 is a material step change
			sustainability across a staff of 804.
	for the Group.
	Rockhampton	Construction has commenced in Rockhampton to deliver a state-of-
		Hangar		the-art maintenance facility.	This facility will	be critical for the
ersonal				continual operational excellence of Alliance.
Alliance Aviation Services Limited 1HFY2022 Results Presentation	1. Subject to the impacts of COVID-19 on domestic capacity demands		4

Five Revenue	Revenue
	Contract

only	Streams		RPT	Charter
		Revenue	Revenue
use	Contract revenue	1	2	3
continues to experience	Contract Revenue	Wet Lease	RPT Revenue
growth and underpins the	Long-term contract	Operating Alliance aircraft	Regular public transport
business. Wet lease	flying	for other carriers	services to regional ports

Wet

Lease

Aviation

Services

4	5
Charter Revenue	Aviation Services
Short-term income from	Allied aviation
ad-hoc requests	services

	activity increased	•	Growth in revenue (21%)	•	Wet lease revenue	•	RPT revenue decreased
ersonal		and hours (6%) compared to		increased during the half-		by 33% on the prior year
however growth was
	prior comparative period		year.		as a result of a strategic
delayed as a result of		(pcp).	•	The forecast growth in		decision of the Group to
COVID-19. This is	•	Sustained activity in the		wet lease did not		further reduce its RPT
	resources sector plus full		materialise as a direct		footprint and focus on
expected to rebound
	half-year effect of new		result of the impact of		being a wholesaler of
strongly from April 2022.		clients acquired.		COVID-19 on the travel		capacity.
•	No material contract		and tourism sectors.	•	Alliance's RPT footprint
		renewals were due within	•	Alliance can immediately		will be limited to
		the half-year.		deploy up to 10 aircraft at		underwritten services.
				increased utilisation.

• Charter revenue reduced by 64% when compared to pcp reflecting the ad- hoc nature of the revenue.
• Material charter client conversion to contract revenue in late FY2021.

• A number of inventory sales transaction occurred in the first half.
• Aerodrome management continues to contribute positively.

Alliance Aviation Services Limited 1HFY2022 Results Presentation

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