bba aviation plc capital markets day › ~ › media › files › s › ... · bba aviation...
Post on 07-Jul-2020
0 Views
Preview:
TRANSCRIPT
02/10/2018BBA Aviation 0
www.bbaaviation.com
BBA Aviation plcCapital Markets Day
Enabling Flight, Expanding Horizons
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
02/10/2018BBA Aviation 1
www.bbaaviation.com
Forward Looking Statements
This presentation contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and services; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome of litigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
2Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
AGENDA – London Luton
TIME SPEAKER
11:45-12:05 Mark Johnstone Group CEO Welcome and introduction
12:05-12:25 Tony Lefebvre Signature COO Presentation
12:25-12:50 Shawn Hall Signature CCO Presentation
12:50-13:20 Lunch
13:20-13:45 Gareth Hall Ontic President Presentation
13:45-14:05 David Crook Group FD Presentation
14:05- 14:45 Mark Johnstone Group CEO Wrap-up and Q&A
14:45-16:15 Site Tour
16:15 Day concludes
3Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
AGENDA – Teterboro
TIME SPEAKER
9:30-9:55 Mark Johnstone Group CEO Welcome and introduction
9:55-10:15 Tony Lefebvre Signature COO Presentation
10:15-10:40 Shawn Hall Signature CCO Presentation
10:50-11:05 Coffee
11:05-11:25 Gareth Hall Ontic President Presentation
11:25-11:40 David Crook Group FD Presentation
11:40-12:15 Mark Johnstone Group CEO Wrap-up and Q&A
12:15-12:45 Lunch
12:45-14:15 Site Tour
14:15 Day concludes
402/10/2018BBA Aviation
www.bbaaviation.com
Mark Johnstone
Group CEO
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
5Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
BBA Aviation team present today
Mark Johnstone, Group CEO
David Crook, Group FD
Kate Moy, Head of IR & Comms
Maria Garton, Group General Counsel
Gareth Hall, Ontic President
Tony Lefebvre, Signature COO
Shawn Hall, Signature CCO
David Blizzard, Company Secretary
Matthew Pritchard, Ontic Cheltenham site director
Gareth Blackbird, Ontic FD
Jen Chase, Group FC
Eric Hietlela, SVP ops, Signature Western region
6Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Purpose of CMD
Strategy to Capture Growth
Growth Opportunities
Strengths & Competitive Advantages
Access to Senior Management
7Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
BBA Aviation – our investment case
Clear market leadership positions in end markets with long-term structural growth drivers
Significant barriers to entry underpin sustainable competitive advantage
Low fixed cost base with flexible cash investment requirements
Multiple organic and inorganic growth opportunities across Signature and Ontic
Attractive financial model with strong free cash flow generation
1
2
3
4
5
8Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Growth and Value Creation
Fortified Network & Expanded Portfolio
Operational Efficiency &
Process Improvement
Technology Solutions for Customers
Improved Customer
Experience
Data Empowered
Decision Making
Focused strategic goals to drive growth and value creation
1100 10110001101010
9Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
BBA Aviation portfolio
Signature
ROIC=12%
# 1 Market Position
Unrivalled global network – 400+ locations
Long leaseholds >17 years
$1.6bn sales / $330m OP (2017)
Real Estate platform for non-fuel growth
Ontic
IP controlled rights
3 locations
$209m sales / $53m OP (2017)
ERO
OEM approved ERO provider
14 locations
ROIC<5%
$513m sales / $12m OP (2017)
Asset held for sale
#1 licence partner of OEMs
Diversified product portfolio
ROIC=15%+
Proven management team
EPIC +$400m of sales
Proven management team
Firstmark + $27m of sales Market position #2
10Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
BBA Aviation – a focussed aviation services company
86%
14%
89%
11%
88%
12%
88%
8%4%
Signature revenue
Ontic revenue
Signature OP
Ontic OP
B&GA
Commercial
Military
North America
Rest of World
2017 revenue / underlying OP splits by business, market and geography
1102/10/2018BBA Aviation
Signature Flight Support
www.bbaaviation.com
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
12Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Total US airports
US business jet airports
Signature US FBOs
Total gallons sold in US
Signature gallons sold
21,300
3,800
139
813M
277M => 34% share
US FBO market – highly fragmented with further potential to grow market share
13Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature - #1 position, and in the right locations with untapped long tail
Signature US gallons represent 34% of total gallons in US markets
Of the top 100 airports, Signature gallons are 46% of the total
Signature network covers 68% of the fuel burn in the top 200 US airports
Signature contracted customers account for 39% of gallons sold
Signature contracted customers operate c.2,000 aircraft which is 14% of the operational fleet in the US
Thus over 11,000 aircraft we do not have a contracted relationship with => long tail opportunity.
14Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature – Continuing to Transform the FBO industry => #1 FBO provider
#1 Global FBO Operator and service provider to B&GA industry
Signature 2023…
- 600+ FBOs
- Enhanced non-fuel income
- Technology leader in the FBO space
- Platform for customers
- B2C and B2B
Signature Today
- 199 owned FBOs includes 19 Signature Selects
- 205 EPIC FBOs plus c.100 unbranded FBOs
- 18 TECHNICAir locations
EPIC acquired July 2018
- 205 EPIC branded FBOs
- c.100 non-branded FBOs
- QT Pod self fuel technology
Signature 2016
- Landmark added 62 locations
- GASAM created
- 18 Signature Selects
Signature 2012
- 115 FBOs
- TECHNICAir 8 locations
- 3 Signature Selects
15Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature – Market Drivers
Aircraft Utilisation
Macro Economic
Drivers
Operational Installed
Fleet
16Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Corporate profits
R² = 0.773
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
- 500 1,000 1,500 2,000Bu
sin
ess
jet
ho
urs
flo
wn
(an
nu
al, i
n 1
00
0s)
Corporate profits (billions, USD)
Signature Market Drivers – Macro Economic Drivers
Macro Economic
Drivers
R² = 0.857
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
- 5,000 10,000 15,000 20,000 25,000Bu
sin
ess
jet
ho
urs
flo
wn
(an
nu
al, i
n 1
00
0s)
GDP (billions, USD)
GDP
Aircraft Utilisation
Macro Economic
Drivers
Operational Installed
Fleet
17Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Long term (25yrs+) through cycle structural growth of 2%+ CAGR
0
1000
2000
3000
4000
5000
0
4000
8000
12000
16000
20000
GDP (Billions in 2009 Dollars) FAA Business Jet Flight Hours (Thousands)
US G
DP
($b
n)
US B&GA Flight Hours and GDPMacro Economic
Drivers
Aircraft Utilisation
Macro Economic
Drivers
Operational Installed
Fleet
FA
A B
usi
ness
Jet
Flig
ht
Ho
urs
(‘0
00s)
18Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Macro Economic
Drivers
Aircraft Utilisation
Macro Economic
Drivers
Operational Installed
Fleet
Operational Installed Fleet – stable for next 10 years
Over the next ten years, the geographical distribution of the B&GA fleet is expected to remain broadly unchanged
B&GA fleet development by region, 2017-27 [% of global fleet]1)2)
Source: Teal, ACAS, Honeywell, Roland Berger
1) Excludes migration effects; 2) Fleet with unknown operating region excluded from analysis; 3) Asia includes Pacific Rim
2017: 20,1002027: 22,800CAGR: 1.3%
North America
2017: 4,3002027: 4,900CAGR: 1.4%
Latin America
2017: 1,6002027: 1,800CAGR: 1.5%
Middle East and Africa
2017: 3,7002027: 4,500CAGR: 2.1%
Europe
2017: 2,1002027: 2,600CAGR: 1.9%
Asia3)
63% 63%
13% 13%
12% 12%
5% 5%
7% 7%
2017 2027
2017 2027 2017 2027
2017 2027 2017 2027
19Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Macro Economic
Drivers
Aircraft Utilisation
Macro Economic
Drivers
Operational Installed
Fleet
Part 135 Part 91 Part 91K
Signature Market Drivers - Aircraft Utilisation
Part 91kFractionals –e.g. Netjets
Flight Hours by Certificate Type
Part 135 Charter –on-demand operators e.g. Wheels-Up, Vistajet
Source: ARG/US based on US market for last 12 months ending Sep 2018
Part 91 Corporate / Private Owner Operators
14%
35%
51%
Flight Hours per Aircraft per year
0
100
200
300
400
500
600
Part 91K Part 135 Part 91
20Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Leveraging our Signature network to deliver more value
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
02/10/2018BBA Aviation 21
Ontic
www.bbaaviation.com
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
22Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Balanced portfolio and business structured to deliver growth
$235M global business – proforma for Firstmark acquisition
New Spares
New OE
R&O
Military
Commercial
B&GA
Electronics/Avionics
Electro/Hydro-Mechanical
Engine Comp
Other
Land Gear
24% 58%
18%
13% 47%
40%
7%3%
40%
28%
22%
Chatsworth, CA
Creedmoor, NC
Plainview, NY
Cheltenham, UK
Singapore
Scalable structure and strong product competency enabling growth potential
23Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Large addressable market for Ontic
In Service Fleets
In Service Aircraft – 156,000
Legacy & Sunset
Active Aircraft38,000
Global Aircraft MRO Spend
$153B
Component & Engine Spend $40B
Legacy Opportunity Space
$9.6Baircraft >25Yrs
Rotorcraft
Military
BG&A
Commercial
Huge opportunity for Ontic, significant room for growth
24Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
High quality earnings through proprietary and sole source positions
Sole Source RevenueProprietary Revenue
Sole source positions drive long term recurring revenue streams
Non-Prop
$2M
1%
Prop
$207M
99%
Non Sole Source
$26M
13%
Sole Source
$183M
87%
25Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
BBA Aviation – our investment case
Clear market leadership positions in end markets with long-term structural growth drivers
Significant barriers to entry underpin sustainable competitive advantage
Low fixed cost base with flexible cash investment requirements
Multiple organic and inorganic growth opportunities across Signature and Ontic
Attractive financial model with strong free cash flow generation
1
2
3
4
5
26Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
$100-110m (1x depreciation)Capital expenditure
Ontic licences
M&A opportunities
Core dividend –sustainable growth
Return to shareholders
Disciplined capital allocation framework – Executing to Plan
Growth
and Value
Creation
Fortified Network & Expanded Portfolio
Operational Efficiency &
Process Improvement
Technology Solutions for Customers
Improved Customer
Experience
Data Empowered
Decision Making
Strategic Growth Initiatives
FCF of $250-300m
$30-35m
$100-150m
c.$140m
To maintain 2.5x leverage
1100 101100011010
10
02/10/2018BBA Aviation 27
www.bbaaviation.com
Tony Lefebvre
Signature Chief Operating Officer
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
28Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Leveraging our Signature network to deliver more value
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
Focus areas – detail to follow
29Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
What is an FBO?
Real Estate Anchor
FBO stands for “Fixed Base Operator”.
Signature FBOs provide premium flight support services including:
- GA Aircraft ground support and fuelling
- Hangar and office leasing
- Concierge services
- De-icing
- Line maintenance
- Ground handling for transport-category aircraft
- Airline fuelling in select markets
30Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
London Luton
- #4 busiest B&GA Airport in Europe
- 13,400 movements p.a.
- 3 FBOs on the field (2 Signature)
Redevelopment
- 45 year lease extension
- $34m redevelopment project
- New FBO 15% larger with 50% more parking
- Increased hangarage of 190 square metres
Highlights - Luton FBO
31Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Teterboro New Jersey (TEB)
- Busiest B&GA Airport in the world
- ~142k movements
- Airport lease through 2035Signature
West
Signature East
Signature South
- Signature - 3 FBO facilities - 5.2 acres aircraft ramp- 80k sq ft hangars- 15k sq ft office / shop space
Highlights - Teterboro FBO
32Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature SelectSignature EPIC
The Signature FBO Network
Opportunities to:
- Harmonise the branding and store fronts
- Transition to a single loyalty programme
- Leverage common technology and customer data management
33Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
The world’s largest FBO network
Geographic base locations FBO Locations
180
7030 29 17 14
205
Signature Atlantic Million Air Jet Aviation Sheltair Tac Air
Operated Epic Select
19 Select
EPIC
Signature
EPIC Select
180Signature
EPIC
205
19Select
34Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Not just the most dots on a map…but the right dots on the map
- FBOs at 37 of the top 50 US General Aviation markets by flight count
- including all 10 of the top 10
- Industry leading network relevancy
- Large scale infrastructure and facilities capable of handling high volume operations up transport category aircraft
- Exclusive presence in markets
Locations# of operations
in 2017% of total US movements
Teterboro (TEB) 141,865 3.7%
Westchester County (HPN) 61,958 1.6%
Dallas (DAL) 58,955 1.6%
Washington (IAD) 57,176 1.5%
Las Vegas (LAS) 51,768 1.4%
Van Nuys (VNY) 51,424 1.4%
Palm Beach (PBI) 50,440 1.3%
Houston (HOU) 50,415 1.3%
Chicago (MDW) 47,968 1.1%
DeKalb-Peachtree (PDK) 41,372 1.1%
Total top 10 US FBOs 613,341 16.2%
Unmatched Network Signature is at top 10 B & GA airports
35Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature - the most relevant network in the FBO space
Relevancy
68% 38% 19% 9% 6% 5% 5% 1%
Signature Flight Support
Atlantic Jet Aviation Million Air Ross TAC Air Sheltair Cutter
Network relevance: FBO presence at top 200 US FBO locations by fuel burn
36Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
17+ years average remaining term
Typical FBO Minimum Standards
- Experienced operators
- Large initial investments
- Required offering of non-fuel services such as aircraft maintenance or charter
- Fuel farm infrastructure
- Commercial Fuelling
- Maintenance
- Other services
FBO network secured with long term agreements
37Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature network grows to over 400 locations with EPIC…
Asset-lite network extension
205EPIC Locations
1. Network - 205 EPIC branded locations plus c.100 unbranded locations
2. Credit Card - Signature and EPIC fuel purchasing cards
• Options to expand
3. Military Defense Logistics Agency (DLA) -Extensive Experience
4. Procurement - Over 500 million gallons of combined buying power with Signature
• Allows us to move upstream
5. Technology - More than 1600 Self-fuelling stations – product differentiation with an alternative way to support 1600+
Self Service Pods
38Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Delivering personalised customer experiences
Improved
Customer
Experience
Team members
- Delivered through highly trained service professionals
- New tools and flexibility to support the customer’s journey
Technology
- CRM database provides team with customer preferences
- Options for customers to do business with us the way they want
Facilities
- Speed - 96% of passengers spend less than an hour with us
- Efficiency - upgraded facilities and ramps to move quickly in and out of the FBO
Amenities
- High speed internet, business facilities, amenities and concierge services
39Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Moving the business forward with investments in technology
Technology
solutions for
customers
Data empowered
decision making
Reduce
65K+reconciliations
1100 10110001101010
New Global FBO management system…
- Invested $10M in purpose built FBO point of sale and reporting system
- Simplified interface – significantly reduces employee training time
- Visibility to labour efficiency and productivity
- Enhanced data on customer behaviour and preferences
From 2,400 to
just over 100total products
Improve over
1Mtransactions
(annually)
40Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Significant growth opportunities to leverage our assets
Focus areas – detail to followFocus Area
Flight
Credit card
Lavatory/ water
Catering
Cleaning
De-ice
Spare aircraft
Maintenance
Aircrew
Airline
Rental car
Hotel
Real estate
Badging/ ramp access
Hangars
Co-branded club
Advertising
Offices
41Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
San Jose – attractive new hangar development
San Jose (SJC) – Third party funded
Capital intensive hangar development & funded by our customers; secures airport lease through 2063
- Satisfies ~$30m capital investment lease obligation
- Will generate incremental property management revenue & fuel sales margin
Real Estate
42Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Real Estate
Teterboro – significant pipeline of hangar development
Teterboro (TEB) - Wetlands development
Only available development land left at TEB within Signature's leasehold
- Two parcels to develop
- Shopping the development now – high interest by Corporates and HNW individuals
- Requires handling and fuelling to be done by Signature
43Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
CommunityEngagement
Signature involved in the community local and national level
44Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
- Paramount to our customers- Everything we do has safety as our first priority
SAFETY
- World class people trained to deliver personalised customer experiences .
PEOPLE
- Delivering individualised customer experiences.
REAL ESTATE
- Speed and efficiency in everything we do for our customers- Technology enabled operations
OPERATIONAL EFFICIENCY
- Global portfolio of long term assets in the locations where customers want to fly
CUSTOMERS
Building a long term sustainable operating platform
02/10/2018BBA Aviation 45
www.bbaaviation.com
Shawn Hall
Signature CCO
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
46Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Leveraging our Signature network to deliver more value
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
Focus areas – detail to follow
47Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Three focus areas will drive increased performance from core revenue
Core revenue streams
Formal network agreements• 50% of revenue under commercial agreement• Contracts anchored to loyalty and volume• Contract management
Pricing optimisation• Central pricing engine in place beginning of
Q4FY18 to automate manual processes• Allows for greater management of ~65% of
revenue base (incl. demand-based pricing)
Alignment with customer segments• Four behavioral segments identified• Commercial group aligning Marketing, Sales
and Revenue Management to segments
110010110001
101010
Handling
Real estate
Fuel
Other
48Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Deeper customer understanding enables more effective go to market
Prestige Commercial
Efficiency Value
FAA segments in SFS network1
Behavioral filter
o General characteristics
- Seeking luxury travel experience- Low utilisation
- Fly for revenue- High utilisation
- Focus on passenger time efficiency- High utilisation
- Price sensitive- Low utilisation
Behavioral segments in SFS network1
Part 91 (owner operator)Part 135 (charter)Fractional
Prestige
Commercial
Efficiency
Value
1 SFS transaction data - % of US revenue
49Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Customer size (annual gallons)
Customer loyalty
Base market attribute
Competitive region
Order size (3 tiers)
300K+potential pricing guidance combinations!
Product
Customer program
=
Network scale presents pricing challenge (and opportunity)
50Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
- Extract data using a BI Tool- Normalise Data
Data Preparation
- Split data into market segmentsSegmentation
- Estimate the market price in each segmentMarket Price
- Make price adjustment where advantageous.- Fix any broken pricing rules
Optimisation
- Predict the financial impact- Measure the results once prices are live in-market
Measure Impact
- Estimate Price/Volume relationship in each segmentPrice Sensitivity
Signature leveraging technology in pricing to capture incremental value
51Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Scale and location create significant non-fuel revenue opportunities
Focus areas – detail to follow
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
52Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature’s position at centre of B&GA transactions underpins growth
Trip/Flight planners
Operators
Spareaircraft
Catering
Maintenance providers
Tenants
Cleaning
HotelRental
Car
Car Service
53Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Non-fuel revenue opportunities
Focus areas – detail to followFocus Area
Flight
Credit card
Lavatory/ water
Catering
Cleaning
De-ice
Spare aircraft
Maintenance
Aircrew
Airline
Rental car
Hotel
Real estate
Badging/ ramp access
Hangars
Co-branded club
Advertising
Offices
54Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Opportunity with Signature / Epic credit card now in-house
Context and opportunity
Signature’s existing credit card supplied by Epic
Signature benefits
- Cost savings (transaction fee)
- Revenue generation
- Customer stickiness (incl. tie to Loyalty programme)
Customer benefits
- Simplified/streamlined billing for all flight needs (1 bill vs. 10-15 invoices)
- Single card across 463 combined SFS/Epic locations (49 states and 28 countries)
110010110001
101010
55Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Deeper penetration of branded fuel card worth $4-8M
- $1.5B in SFS revenue
- 25% penetration (current penetration in Epic network)
- Standard rates and fees
Opportunity assumptionsSplit of fuel revenue (present) Split of fuel revenue (future)
Direct Bill
Other
Card A
Card B
Card C
Card D
Card E
Direct Bill
Other
Cards A-E
…Incremental value possible with broader use Signature card
Source: SFS transaction data
Signature card Signature card
$4-8M underlying operating profit
opportunity
56Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Pivoting network advertising worth $3-6M and indirect benefits
Key passenger stats
1.7M1
Avg. net worthAnnual passenger volume
Avg. annual discretionary income
$67M – 1.5B2 $728K – 11.8M3
Summary of benefits
- Increase from ~$1M operating profit today by focusing on passengers and national/spot contracts
- Elevated passenger experience level
- Stronger luxury brand affiliation
1 NBAA, SFS operations data; 2 Jet Traveler Report 2018; 3 Wealth-X 2015 UHNWI Luxury Spend
$3-6M underlying operating profit
opportunity
57Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Opportunities exist to drive growth through new services and asset utilisation
Focus areas – detail to follow
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
58Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Opportunity exists to monetise services provided to passengers
Flight
Credit card
Lavatory/ water
Catering
Cleaning
De-ice
Spare aircraft
Maintenance
Aircrew
Airline
Rental car
Hotel
Real estate
Badging/ ramp access
Hangars
Co-branded club
Advertising
Offices
Passenger
Security
Concierge
Hotel
Elite
Black car
Focus Area
59Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature positioned to satisfy demand for differentiated airline experience
Growing wealthy population
Demand for differentiated airport
experience
Existing real estate and know how
Source: JD Power; Capgemini Financial Services Analysis, 2018
- Airport accessibility, check-in/baggage, and security check key airport rating factors
- Near 100% overlap with hubs of largest US airlines
- Existing experience in providing differentiated level of service
- Proven Elite concept (EMEA and Caribbean)
CAGR 2010-16
Growth 2016-17
7.4%
7.3%
7.2%
11.2%
10.4%
9.4%
$30m+
$5-30m
$1-5m
Description
Ultra-HNWI
Mid-tier Millionaires
Millionaires next door
60Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Elite provides private jet experience through airline during departure…
Greeting Light service
Security1
Airliner boarding
Private jet boarding
Departure
1 Security requirements vary across locations
Luxury shuttle
61Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
…and arrival
Private jet deplaning
Luxury shuttle
Border/Customs
Luggage
Airliner deplaning
Arrival
62Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Beyond right real estate, key by-airport needs in place
Location A Location B Location C Location D Location E Location F Location G
Badged Employees ✓ ✓ ✓ ✓ ✓ ✓ ✓
24/7 Staffing ✓ ✓ ✓ ✓ ✓ ✓
Security Cameras ✓ ✓ ✓ ✓ ✓ ✓ ✓
Airside Access ✓ ✓ ✓ ✓ ✓ ✓ ✓
Private Lounge ✓ ✓ ✓ ✓ ✓ ✓
Conference Room ✓ ✓ ✓ ✓ ✓ ✓ ✓
Airport Approved Vehicles ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs & Immigration On Airport On Site On Site On Site On Site On Airport On Airport
Long Term Parking On Site Off Site On Site On Site Off Site Off Site Off Site
63Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Elite worth $5-10M in underlying operating profit
50M/ year1
$500-$1.5K
0.10%3
5M/ year2
Passengers
1st Class Elite
1 Commercial airline traffic in average target airport 2 Assumed 10% First Class traffic 3 Assumed daily capture
5-10 FBOs
$5-10M OP opportunity
64Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Signature focused on new ways to influence upstream decisions
OperatorsNetwork relevance
Influence upstream decisions
Tech enabled service delivery
PassengersBrand
awareness
Differen-tiated
experience
Influence upstream decisions
Loyalty based pricing
Hub of aviation needs
Ease of doing
business
Traditional focus area
New focus area
Detail to follow
All air travel needs
Incentivisedecision maker
65Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Timing
Signature moving to influence upstream FBO decisions…
Method to book FBO Historical focus
Detail to follow
Advance Commercial agreement
Trip / Flightplanning
Charterbooking
Pre-takeoff / in-flight /post-landingReal-time
66Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Passenger requests flight
Aircraft arrives at FBO
Flight secured
Sample flight timeline
…by exploring relationships with upstream enablers
Flight/Trip planned
Service providers notified
D-10 D0D-9 D-3 D-1
3rd Party trip planners
Operator dispatcher
Charter broker
Flight planning tools
Key enabler(s) to step
Options to move upstream
- Equity investment- Commercial agreement
110010110001
101010
67Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Leveraging our Signature network to deliver more value
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
Pricing optimisation
Credit card
Elite
Drop through >50% >50% >50%
Advertising
(1-2 yrs)
(2-4 yrs)
(2-5 yrs)
Underlying operating profit ($M) ~10 7-14 5-10
02/10/2018BBA Aviation 68
www.bbaaviation.com
Gareth Hall
Ontic President
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
69Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Overview of Ontic presentation
What we do
Competitive advantage
Historical Performance
Future Growth
1
2
3
4
70Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
How does Ontic create and capture value?
Pedigree Availability Value
OEM design & quality
Obsolescence management
OEM regulatory approvals
Exceptional customer service
Supply chain specialist
Fleet knowledge demand forecasting
Long term product and service provision
Ensuring availability of high quality products and services to our customers creates significant value
OEMs trust Ontic to meet the needs of the long term customers
Value to OEM and to “Our Customer”
Meet the needs of ‘shared’ customers
Ensuring legacy aircraft remain flying
Prices reflect the value delivered
71Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Value creation through supply chain execution - GTSU Safran Licence
Licence Summary:
- Product: Gas Turbine Starter Unit
- Platforms: AV8B
- Customers: US Marines
- Service Life: 2028
- Cold supply chain
Fleet readiness record levels and strong investment returns
Exceeding Expectations:
- Complex, low yield supply chain re-engaged
- Customer relationship established following expiry of incumbent support (Boeing HISS)
- Record parts availability achieved. Highest performing supplier on the AV8B programme
72Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Balanced portfolio and business structured to deliver growth
$209M global business - Revenue mix
New Spares
New OE
R&O
Military
Commercial
B&GA
Electronics/Avionics
Electro/Hydro-Mechanical
Engine Comp
Other
Land Gear
24% 58%
18%
13% 47%
40%
7%3%
40%
28%
22%
Chatsworth, CA
Creedmoor, NC
Plainview, NY
Cheltenham, UK
Singapore
Scalable structure and strong product competency enabling growth potential
73Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
How do we expand the product portfolio?
Do the parts require to be replaced or repaired?
3 phase assessment lense:
Intellectual Property Platform Aftermarket Need
Trusted, long term partner with major aviation OEMs
Drawings
Complex, bespoke test equipment
Knowhow
Scale – number of active planes
Longevity – how long the aircraft fleet is expected to remain active
74Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Why do OEMs choose to licence product lines?
Ontic recognised as a trusted, long term partner
- Focus on new aircraft platforms
- Products no longer core to strategic focus
- Decreasing volume with sporadic demand
- Products utilised on maturing or declining fleet
- Product support challenges
- Contract restrictions prevent desired returns
- Footprint / capacity challenges
75Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
160 Licences signed, key to success are Ontic’s strong OEM & customer relationships
OEM Partners Key Customers
76Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Complex carve outs – GE Aviation Systems Fuel Measurement 2012
Acquisition summary:
- Deal completion: May 2011
- Total investment: $65M
- Platforms: B777, A320, Typhoon, Hawk
- Customers: Boeing, Airbus, BAE Systems, Airlines
- Markets: Civil OEM / Airline MRO / Military
Challenges and opportunities:
- Establishment of UK footprint
- Transfer 50 members of staff (TUPE)
- System level responsibility – 777 & A320
- High volume production and aftermarket spares/repairs
- Execution of fleet wide upgrade programmes
- Developed infrastructure to support licence growth
Trusted partner, strong continuing relationships
77Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Creating trust and confidence through execution and delivery
Complex carve outs - GE Legacy Avionics 2017
Acquisition summary:
- Investment: $61.5M acquisition
- Investment: $4M capital
- Return: $9m Annual EBITDA
- Platforms: B737, Hawk, AW101, C130
- Customers: BAE, Boeing, Leonardo
- Markets: 74% Military / 26% Civil
Transition challenges:
- Transfer 83 members of staff (TUPE)
- Facility enhancements:
- Cleanroom
- Temp & humidity controlled workshop
- Specialist process areas
- Rare skills and demographic challenges
- High volume of technically complex parts
78Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Our People – creating and driving value
Our people are:
- Proud to work at Ontic – Top quartile engagement
- Committed to a future career with Ontic
- Keen to develop and undertake new opportunities
- Thriving in an entrepreneurial culture
We invest in our communities
- Participation in youth employment programmes
- Employee led engagement programmes
- Promote STEM careers and careers in Aviation
Engaged global team delivering exceptional results
79Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
OEMTransition to Maturity
Non-Core & Legacy Products
TIME
DEM
AN
D
Authorised Legacy Support
OEM Content
Unauthorised PMA
Consolidators
Distributers & 3 PL’s
NICHE
50+YRS
Ontic is the market leader in its space
R&D GROWTH MATURITY SUNSET
Ontic Effect
80Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Large and attractive opportunity space
In Service Fleets
In Service Aircraft – 156,000
Legacy & Sunset
Active Aircraft38,000
Global Aircraft MRO Spend
$153B
Component & Engine Spend
$40B
Legacy Opportunity Space
$9.6Baircraft >25Yrs
Rotorcraft
Military
BG&A
Commercial
Huge opportunity for Ontic, significant room for growth
81Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Intellectual property provides significant barriers to entry
Sole source revenueProprietary revenue
Sole source positions drive long term recurring revenue streams
Non-Prop
$2M
1%
Prop
$207M
99%
Non Sole Source
$26M
13%
Sole Source
$183M
87%
82Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
0
50
100
150
200
250
300
Current Year 2019 2020+ Total Order Book Value
2018.10 Order Book Known Volume
The portfolio provides high levels of future revenue visibility
Portfolio allows a significant forward order book to be maintained
Ontic firm orderbook + order run rate- Total backlog
$270M
- Firm orders $173M +
- Order run rate, ‘known volume’ $60M
- $130M of 2019 revenue booked
270
80
130
60
57103
50
21027
30
60
83Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
- Portfolio of 160 licences with 6000 products
- Incumbency value very high
- Long life platforms
- All licences have renewal options
- 100% success rate at licence renewals
Secure long term positions on platforms with significant future lifespan
Portfolio assures access to long term attractive and visible revenue streams
>10 yrs. with renewal options
$31.6M
15%
<10 yrs. with renewal options
$45.4M
22%
Owned or Perpetual
$132.0M
63%
Licence Portfolio - 2017 $m Revenue
84Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Disciplined investment approach key in executing profitable growth
Strong growth performance & future potential
- Aftermarket focus
- IP protected products
- Sole Source positions
- Long term revenue streams
- Large ‘legacy’ market
- Pipeline of opportunities
46
168
209
13
48 63
-
50
100
150
200
2008 2013 2017
Ontic Revenue & EBITDA Revenue EBITDA
29%
28%
Ontic Revenue & EBITDA
46
168
209
13
48 63
-
50
100
150
200
2008 2013 2017
Ontic Revenue & EBITDA Revenue EBITDA
29%
28%
30%
85Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Licence/Product Line opportunity funnel
EXPLORATORY
EVOLVING
ACTIVE NEGOTIATION
SIGNEDUTAS
Q4 2017
- Disciplined investment approach
- Deal gestation period often >1year
- Average of 1 in 5 opportunities converts
- Dedicated teams in place in US and UK
- Well positioned to deploy $35m/annum on value creative deals
32 deals closed since BBA acquisition of Ontic, average multiple 5-8x
HONEYWELLQ1 2018
FIRSTMARKQ4 2018 WOODWARD
Q3 2018ESTERLINEQ4 2017
86Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Acquisition of Firstmark Corp – Platform for growth
Growth opportunities, strong market positions with stable recurring revenue
Transaction overview
- $27m annual revenue generating c $8.5m EBITDA
- IP protected aftermarket portfolio
- 2 US East Coast locations
Growth
- Growth through capture of legacy military IP
- Pricing potential through additional value creation for customers
- Capacity - capable and experienced management team
Barriers to entry
- Complex aftermarket parts – intellectual property held
- The key platforms served are considered ‘sweet spot’ (F15, F16, F18, KC135, C130)
87Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Execute on opportunity space and deliver
Market Intelligence Growth Optimisation
- Platform
- Pricing
- Geographic penetration
- Expanded platform focus
- Deepening OE relationships
- Sourcing
- Footprint
- Continuous improvement
Double EBITDA from 2016 by 2021 – Management executing to plan
Strategy execution delivering growth to $100m of EBITDA
- Channels
- Products
Data Analytics that drive our decision making
- Ensure continued pipeline to deploy capital
- Provides visibility into platform/ market opportunities and risk
- $35M of annual investment
- Targeted M&A e.g. Firstmark
- Drive value from existing portfolio
3 PILLARS OF STRATEGY
88Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Summary
- Licence or acquire IP
- Legacy aftermarket space
- Ensure availability of parts and service
- Sole source positions
- OEM relationships
- Integration capability
- Supply chain proficiency
- 32 licence & M&A deals signed
- Revenue growth from $46M to $209M
- EBITDA margins of 30%+
- Active and extensive pipeline of opportunities
- Platform & Market analysis tools
- Scalable organisation ready to execute on future growth
What we do
Competitive advantage
Historical performance
Future growth
1
2
3
4
Market leading position, strong value creation and significant future opportunity
02/10/2018BBA Aviation 89
www.bbaaviation.com
David Crook
Group FD
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
90Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
Operating model built on strong foundations
17 1
8
18 1
9
18
18
17
2012 2013 2014 2015 2016 2017 2018
Foundation
Ontic
Foundation
US FBO long leases
Sole source revenueProprietary revenue
Non-Prop
$2M 1%
Prop
$207M 99%
Non Sole Source
$26M 13%
Sole Source
$183M 87%
91Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
Flexible operating model
25%
75%
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2018 guidance
FBO/Hangar dvpmt
FBO Maintenance
Ontic
ERO
Other
$110m
Flexibility
Capital Expenditure Flexible Cost Base
Flexibility
Fixed costs - Leases & other
Variable costs - Fuel & labour
92Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
Debt Maturity Profile
Debt facilities that support growth and long-term nature of core assets
- Leverage range set at 2.5-3.0x on a covenant basis (2.6x at June 2018)
- $650m unsecured RCF refinanced in H1 2018, expiry March 2023
- In April 2018 issued our inaugural $500m senior unsecured notes due 2026 at 5.375%
- Proceeds used to repay Facility B acquisition debt and maturing US PP notes
- Facility C acquisition debt of $450m to be refinanced by 2019 (matures 2020)
- Weighted average cost of debt c.5%
$m
0
100
200
300
400
500
600
700
800
2018 2019 2020 2021 2022 2023 2024 2025 2026
RCF Usage Term Debt Usage Bond USPP RCF Headroom
Headroom of $618 m as at 30 June 2018
93Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
$100-110m (1x depreciation)Capital expenditure
Ontic licences
M&A opportunities
Core dividend –sustainable growth
Return to shareholders
Disciplined capital allocation framework – Executing to plan
Growth
and Value
Creation
Fortified Network & Expanded Portfolio
Operational Efficiency &
Process Improvement
Technology Solutions for Customers
Improved Customer
Experience
Data Empowered
Decision Making
FCF of $250-300m
$30-35m
$100-150m
c.$140m
To maintain 2.5x leverage
1100 101100011010
10
Strategic Growth Initiatives
94Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Disciplined capital appraisal based on ROIC
Screening $m Rationale 12% ROIC threshold
St Thomas FBO(49% share completed)
9Arrivals/departures on the field. Length of unexpired lease term. No of FBOs on the field. Network relevance
EPIC(Completed)
88Franchise network. Card programme. Broader data capture. Access to direct fuel procurement
Ontic licences(Completed)
22 High IP content. Sole source rights. Fleet size and identifiable aftermarket
Firstmark(Completion late in 2018)
97High IP content. Sole source rights. Fleet size and life cycle. IP development opportunities. Expandable footprint
ROIC calculated by dividing underlying operating profit by net assets, at the average exchange rate for the last 13 months’ spot rate. The net assets for ROIC are calculated by averaging the net assets over the last 13 months.
95Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
Pricing optimisation
Credit card
Elite
Drop through >50% >50% >50%
Advertising
(1-2 yrs)
(2-4 yrs)
(2-5 yrs)
Underlying operating profit ($M) ~10 7-14 5-10
Leveraging the Signature network for outperformance
96Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Summary
- Strong and flexible operating model representing significant barriers to entry
- Multiple organic and inorganic growth opportunities support Free Cash Flow generation
- Balance sheet in place to support strategy for growth
- Disciplined capital appraisal policy
- Shareholder returns in alignment with our transparent capital allocation policy.
02/10/2018BBA Aviation 97
www.bbaaviation.com
Mark Johnstone
Group CEO
Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
98Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
BBA Aviation – our investment case
Clear market leadership positions in end markets with long-term structural growth drivers
Significant barriers to entry underpin sustainable competitive advantage
Low fixed cost base with flexible cash investment requirements
Multiple organic and inorganic growth opportunities across Signature and Ontic
Attractive financial model with strong free cash flow generation
1
2
3
4
5
99Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
Leveraging our Signature network to deliver more value
- Market leadership
- Competitive strengths
- Flexible operating model
- Service enhancements
- Network agreements
- Alignment with customer segments
- Pricing optimisation (incl. real estate)
- Flight related (e.g., catering, credit card, maintenance)
- Aircrew(e.g., rental car, hotels)
- Real estate (e.g., hangar, advertising)
- New passenger services (e.g., Elite, black car, hotels)
- Customer stickiness
- Aircraft operator loyalty
- Passenger loyalty
Organic Growth
Core revenue source optimisation
Non-fuel revenue growth
New services and asset utilisation
1
2
3
4
100Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations
Building to a $100m EBITDA by the end of 2021
- Licence or acquire IP
- Legacy aftermarket space
- Ensure availability of parts and service
- Sole source positions
- OEM relationships
- Integration capability
- Supply chain proficiency
- 32 licence & M&A deals signed
- Revenue growth from $46M to $209M
- EBITDA margins of 30%+
- Active and extensive pipeline of opportunities
- Platform & market analysis tools
- Scalable organisation ready to execute on future growth
What we do
Competitive advantage
Historical Performance
Future Growth
1
2
3
4
101Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
BBA Aviation – primed for growth
1. Simplified portfolio
2. Capital discipline => pre-tax ROIC >12%
3. Enhanced leadership with active management
4. Expand platform positions through connections to customers
5. Further opportunities for value creation from our infrastructure
6. Signature flight path to deliver 250bps mid term through cycle outperformance
7. Ontic grows to a $100m EBITDA business by end 2021.
102Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages
$100-110m (1x depreciation)Capital expenditure
Ontic licences
M&A opportunities
Core dividend –sustainable growth
Return to shareholders
Driving shareholder value – Enabling Flight and Expanding Horizons
Growth
and Value
Creation
Fortified Network & Expanded Portfolio
Operational Efficiency &
Process Improvement
Technology Solutions for Customers
Improved Customer
Experience
Data Empowered
Decision Making
FCF of $250-300m
$30-35m
$100-150m
c.$140m
To maintain 2.5x leverage
1100 101100011010
10
Strategic Growth Initiatives
top related