presentation for shareholders · asg group’s revenue, net profit sales / operating profit...

PRESENTATION FOR SHAREHOLDERSCONSOLIDATED FINANCIAL INFORMATION FOR 2017

15 February, 2018

� ASG Group’s Development in 2017

� ASG Group’s Structure / Areas of Activity

� ASG Group’s Financial Results in 2017

� ASG Group’s Revenue, Net Profit

� Sales / Operating Profit Breakdown by Business Segments

� Consolidated Balance Sheet

� ASG Group’s CAPEX

� ASG Group’s Employees

� ASG Share Price & Performance

� ASG Shareholders

Content

1

ASG Group Development in 2017

Financial Parameters:

2

� Increase in consolidated revenue from continuing operations by EUR 42 million, by 14% (2017 vs2016) primarily due to:� significantly increased revenue from aircraft fuel sales;� sustainable growth increase in demand for spare parts and consumables, engineering, base

maintenance services;� significant growth increase in crew training and staffing business segment;� development of tour operation services;

� EBITDA for 2017 amounted to EUR 14.4 million;

� The Group has expanded its tour operation services which generated EUR 16.5 million revenue inthe 2017.

3











ASG Group’s Structure / Areas of Activity

MRO Segment(14 companies)

GH & Fuelling Segment(8 companies)

Training Segment(3 companies)

Private Jet Charter, Flight and Tour Operations

(6 companies)

FL Technics UAB (100%) Jet Maintenance Solutions UAB (100%)

Locatory.com UAB (95%)FLT Trading House UAB (100%)

FL Technics Line OOO (93%)FL Technics Ulyanovsk OOO (99.99%)

Storm Aviation Ltd. (100%)Storm Aviation Cyprus Ltd. (100%)Storm Aviation Nigeria Ltd. (100%)

Storm Aviation Germany GmbH (100%)*Helisota UAB (100%)

Kauno aviacijos gamykla UAB (100%)FL Technics Asia Co. Ltd. (99.997%)

Avia Technics Dirgantara PT. (49%)**

BAA Training UAB (100%)AviationCV.com UAB (100%)BAA Simulators UAB (100%)***

Baltic Ground Services UAB (100%)Baltic Ground Services Sp.z.o.o (100%)Baltic Ground Services UA TOV (50%)

BGS Trans UA TOV (100%)****Baltic Ground Services RU OOO (100%)Baltic Ground Services EE OU (100%)Baltic Ground Services LV SIA (51%)

Baltic Ground Services CZ s.r.o. (100%)

KlasJet UAB (100%)Laserpas UAB (50%)KIDY Tour UAB (100%)KIDY Tour OÜ (100%)

KIDY Tour OOO (100%)*****KIDY Tour SIA (100%)******

* - the Company was established on 29 March 2017

** - the Group holds control over an investee

*** - the Company was established on 24 October 2017

**** - the Company was established on 3 July 2017 4

***** - the Company was established on 6 March 2017

****** - the Company was established on 9 October 2017

5











ASG Group’s Financial Results in 2017

6

4Q 2017 4Q 2016Change (4Q 2017

vs 4Q 2016)EUR thousands (except margins & EPS & numbers of shares) 2017 2016

Change

(2017 vs

2016)

90 814 81 811 +11.0% Revenue 348 422 305 960 +13.9%

3 592 3 583 +0.3% EBITDA 14 437 16 392 -11.9%

4.0% 4.4% -0.4 p.p. EBITDA margin (%) 4.1% 5.4% -1.3 p.p.

1 946 2 411 -19.3% Operating profit 7 067 10 515 -32.8%

2.1% 3.0% -0.9 p.p. Operating profit margin (%) 2.0% 3.4% -1.4 p.p

2 024 2 529 -20.0% Profit before income tax 5 200 9 408 -44.7%

1 751 2 307 -24.1% Net profit for the period 4 862 8 094 -39.9%

1.9% 2.8% -0.9 p.p. Net profit for the period margin (%) 1.4% 2.7% -1.3 p.p.

1 866 2 750 -32.1% Net profit attributable to equity holders 5 721 8 794 -34.9%

2.1% 3.4% -1.3% Net profit attributable to equity holders margin (%) 1.6% 2.9% -1.3 p.p.

0.240 0.354 -32.2% EPS (EUR) 0.736 1.131 -34.9%

1 571 2 716 -42.2% CAPEX (additions of PPE and intangible assets) 8 095 7 850 +3.1%

8 645 4 732 +82.7% Cash at the end of period 8 645 4 732 +82.7%

7 778 7 778 - Weighted average number of ordinary shares (thousand) 7 778 7 778 -











7

� Increase by 14% in Group’s revenue (2017 vs 2016).

ASG Group’s Revenue

8

43

39

50

50

45

45

59

58

66

57

78

89

82

81

88

89

91

4Q 2013

1Q 2014

2Q 2014

3Q 2014

4Q 2014

1Q 2015

2Q 2015

3Q 2015

4Q 2015

1Q 2016

2Q 2016

3Q 2016

4Q 2016

1Q 2017

2Q 2017

3Q 2017

4Q 2017

9





� Sales/Operating Profit Breakdown by Business Segments






ASG Group’s Revenue by Business Segments

10

* - Group’s revenue from continuing operations

� Group’s revenue breakdown in 4Q 2017 by business segment was 35% MRO / 45% GH & Fuelling / 4% Training / 15% Business charter.

28

25

29

25

27

25

31

24

40

34

38

34

38

34

41

41

32

13

12

18

23

15

17

25

30

22

19

35

48

38

40

36

40

41

2

2

3

2

2

2

2

2

3

3

3

3

3

4

5

5

4

-

-

-

-

1

1

1

2

1

1

2

4

3

3

6

3

14

4Q 2013

1Q 2014

2Q 2014

3Q 2014

4Q 2014

1Q 2015

2Q 2015

3Q 2015

4Q 2015

1Q 2016

2Q 2016

3Q 2016

4Q 2016

1Q 2017

2Q 2017

3Q 2017

4Q 2017

MRO segment

GH & Fuelling segment

Crew training and staffing segment

Private jet charter, flight and tour

operations segment

Sales / Operating Profit Breakdown by Business Segments, 2017

11

* Segments’ share in Sales and Operating Profit calculated based on total Sale/ Operating Profit value (including intercompany transactions)

Business Segments’

Revenue to external

customers

(EUR million)

Business Segment’s

Operating Profitability

(EUR million)

Tendencies of Business Segment’s

Operating Profitability (percent)

+111%

2017 1Q

vs

2016 1Q

40

22

3 1

38 38

3 3

32

41

4

14

MRO segment GH & Fuelling segment Crew training and staffing

segment

Private jet charter and

flights operations segment

4Q 2015

4Q 2016

4Q 2017

3.0

1.1 0.1

-0.1

1.5 1.40.1

-0.6

1.30.8 0.5 0.9

8%

4% 4% 5% 4%2% 5%

5%

12%

-10% -19%

7%

Sales / Operating Profit Breakdown by Business Segments, 2017

12

* Segments’ share in Sales and Operating Profit calculated based on total Sale/ Operating Profit value (including intercompany transactions)

Business Segments’

Revenue to external

customers

(EUR million)

Business Segment’s

Operating Profitability

(EUR million)

Tendencies of Business Segment’s

Operating Profitability (percent)

+111%

2017 1Q

vs

2016 1Q

119

94

10 5

144 139

12 10

147 157

18 26

MRO segment GH & Fuelling segment Crew training and staffing

segment

Private jet charter and

flights operations segment

2015

2016

2017

3.4

0.8-0.3

7.3

4.1

0.9

6.0

1.91.5

0.5

-1.2-10.4

-9%

5%4%

4% 3%

1%8% 7%

8%

-10%

-19%

7%

Operating Data by Business Segments, 4Q 2017 & 2017

13

4Q 2017 4Q 2016 Change, % 2017 2016 Change, %

Number of SOLD man-hours (base maintenance)

130 947 121 493 +7.8% 447 721 421 193 +6.3%

Number of SOLD man-hours (engineering)

15 428 12 553 +22.9% 68 623 58 282 +17.7%

Number of SOLD man-hours (maintenance training)

4 006 3 174 +26.2% 14 545 10 422 +39.6%

Number of line stations (at the end of the period)

35 27 +8 35 27 +8

Number of aircrafts served (only departures)

4 138 3 500 +18.2% 15 569 12 621 +23.4%

Number of passengers served (only departures)

417 981 289 307 +44.5% 1 442 563 1 182 387 +22.0%

Volume of fuel sold (tonnes) 54 241 75 131 -27.8% 232 969 279 613 -16.7%

TRTO - Number of sold theoretical training hours

3 763 2 516 +49.6% 16 651 11 478 +45.1%

TRTO - Number of sold practical training (FFS) hours

5 503 4 487 +22.6% 24 358 19 812 +22.9%











14

Net debt = Borrowings – Cash and cash equivalents

Equity ratio = Total equity / Total assets

Gearing ratio = Net debt / (Net debt + Total equity)

Consolidated Balance Sheet (1)

31-12-2017 31-12-201631-12-2017 vs

31-12-2016EUR thousand

156 275 145 705 +7.3% Total assets

8 645 4 732 +82.7% Cash and cash equivalents

67 840 66 694 +1.7% Trade receivables

62 726 59 260 +5.8% Total equity

32 048 31 632 +1.3% Borrowings

23 403 26 900 -13% Net debt

1.2 1.2 - Liquidity risk

40% 41% -1 p.p. Equity ratio, %

27% 31% -4 p.p. Gearing ratio, %

15


16

31-12-2017 31-12-201631-12-2017 vs


156 275 145 705 +7.3% Total assets8 645 4 732 +82.7% Cash and cash equivalents


62 726 59 260 +5.8% Total equity

32 048 31 632 +1.3% Borrowings

23 403 26 900 -13% Net debt




20%

4%5%

43%

19%

3%

0%

0%6%

Property, plant and equipment

Intangible assets

Deferred income tax assets

Trade and other receivables

Inventories

Amount due from customers for contract

workPrepaid income tax


17

31-12-2017 31-12-201631-12-2017 vs


156 275 145 705 +7.3% Total assets



62 726 59 260 +5.8% Total equity

32 048 31 632 +1.3% Borrowings 23 403 26 900 -13% Net debt




17%

0%

63%

20%

Bank borrowings

Borrowings from other related parties

Bank overdraft

Finance lease liabilities


18

31-12-2017 31-12-201631-12-2017 vs


156 275 145 705 +7.3% Total assets



62 726 59 260 +5.8% Total equity

32 048 31 632 +1.3% Borrowings 23 403 26 900 -13% Net debt




66%

33%

1%

Aircraft and Helicopter Maintenance, Repair andOverhaul (MRO)

Aircraft Ground Handling and Fuelling

Crew Training and Staffing

Private jet charter, flight and tour operations segment


19

31-12-2017 31-12-201631-12-2017 vs


156 275 145 705 +7.3% Total assets



62 726 59 260 +5.8% Total equity

32 048 31 632 +1.3% Borrowings

23 403 26 900 -13% Net debt




3%

52% -1%

42%

2%

Share capital

Share premium

Legal reserve

Merger reserve

Fair value reserve

Cumulative translations differences

Retained earnings

Non-controlling interests











20

ASG Group’s CAPEX

Capital Expenditure (CAPEX, EUR million)

5,8

1,3 1,4

0,8

1,3 1,3

3,3

4,2

0,6 1,2

1,0

3,0 2,7

1,1 1,5

3,9

1,6

-

1,0

2,0

3,0

4,0

5,0

6,0

4Q

2013

1Q

2014

2Q

2014

3Q

2014

4Q

2014

1Q

2015

2Q

2015

3Q

2015

4Q

2015

1Q

2016

2Q

2016

3Q

2016

4Q

2016

1Q

2017

2Q

2017

3Q

2017

4Q

2017











22

ASG Group’s Employees

Number of full-time employees at the end of period Breakdown of the Group’s employees

by business segments (31-12-2017)

23

62%

25%

7%

3%

3%

MRO

GH

Training

Private Jet Charter,

Flight and Tour

Unallocated

1342

1342

1437

1499

1534

1595

1631

1667

1674

1712

1795

1874

1954

2033

2143

2228

2305

31-12-2013

31-03-2014

30-06-2014

30-09-2014

31-12-2014

31-03-2015

30-06-2015

30-09-2015

31-12-2015

31-03-2016

30-06-2016

30-09-2016

31-12-2016

31-03-2017

30-06-2017

30-09-2017

31-12-2017

24











ASG Share Price & Performance

ASG (from 02-01-2017 till 15-02-2018)

02-01-2017: 26.00

High: 27.00

Low: 15.80

15-02-2018: 15.80

Prices in PLN

25

26











ASG Shareholders

� On 3 March 2011 shares of the Avia Solutions Group AB were introduced to trading at Warsaw Stock Exchange (code: AVIASG).� The authorised capital of the Company is divided into 7 777 777 ordinary shares with a par value of EUR 0.29 each.

� 1 Part of shares and votes Amount of shares and votes

15-02-2018 31-12-2016 15-02-2018 31-12-2016

29.44% 29.44% ZIA Valda Cyprus Ltd. 2 290 045 2 290 045

10.71% 10.71% Indeco: Investment and Development UAB 832 666 832 666

9.39% 10.10% VGE Investments Limited 730 216 785 216

8.99% 8.99% Mesotania Holdings Ltd. 699 115 699 115

7.57% 7.78% Harberin Enterprises Limited 589 082 605 227

5.39% 5.01% Nationale-Nederlanden Otwarty Fundusz Emerytalny 419 000 390 000

28.51% 27.97% Other 2 217 653 2 175 508

100.00% 100.00% Total 7 777 777 7 777 777

Shareholders, holding more than 5 per cent of the share capital and votes, as on 15 February 2018:

27

29%

11%9%

9%

8%

5%

29%

ZIA Valda Cyprus Ltd.

Indeco: Investment and Development UAB

VGE Investments Limited

Mesotania Holdings Ltd.

Harberin Enterprises Limited

Nationale-Nederlanden Otwarty Fundusz Emerytalny

Other

Thank You For Your Attention

www.AviaSG.com/InvestorRelations

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