Ends Quarter With Over $5.7bn in Liquidity

DUBLIN–(BUSINESS WIRE)–Avolon, the international aircraft leasing company, announces results for the third quarter of 2020 (‘Q3’).

2020 THIRD QUARTER | FINANCIAL HIGHLIGHTS

US$ MILLION

Q3 2020

Q3 2019

Lease Revenue

504

651

Impairment & Accelerated Amortisation Charge

(42)

(9)

(Loss)/profit for the quarter

(41)

161

Total Available Liquidity

5,738

6,308

Total Assets

31,057

28,385

Secured Debt / Total Assets

26%

28%

Net Debt to Equity

2.3x

2.1x

– Strong liquidity position at quarter end, with total liquidity in excess of US$5.7 billion;

– Third quarter lease revenue of US$504 million;

– Net loss of US$41m for third quarter;

– Closed a private offering of US$650m senior unsecured notes with a 2026 maturity;

– Prudent capital structure – with net debt to equity of 2.3x at end of Q3;

– Lease revenue collection rate trended upwards during Q3;

– Aggregate increase in trade receivables and deferred revenue asset implies year to date lease revenue collection rate of 83%; and

– 24 customers started repayments as scheduled in Q3; four additional customers remain in arrears or are subject to an extension of their deferral period.

2020 THIRD QUARTER | OPERATIONAL HIGHLIGHTS

– Delivered four new aircraft and transitioned one aircraft to a follow-on lessee;

– Sold one aircraft during the quarter, representing the final aircraft to be sold to the Sapphire 2020-1 vehicle;

– Executed a total of 55 lease transactions in the quarter comprising new aircraft placements, follow-on leases, lease extensions and 15 sale and leaseback transactions;

– Owned and managed fleet of 551 aircraft at the end of Q3, with total orders and commitments for 286 new technology aircraft;

– Average aircraft age of 5.3 years; and

– Total of 145 airline customers in 61 countries.

Dómhnal Slattery, Avolon CEO, commented: “The third quarter represented another quarter of strong liquidity, active portfolio management and, encouragingly, a continued improvement in our revenue collection rate. Our capital position continues to be one of the strongest in the sector. Our capital strength and depth of industry relationships means we are well placed to take advantage of growth opportunities – where they align with our prudent approach to risk management and strict underwriting discipline.

We will continue to be nimble and opportunistic in coming quarters but will balance our appetite for opportunistic growth with maintaining a strong financial position, which is a hallmark of the Avolon franchise.”

ENDS

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 one of the world’s largest aircraft leasing businesses with an owned, managed and committed fleet, as of 30 September 2020 of 837 aircraft.

Website: www.avolon.aero
Twitter: @avolon_aero

Note Regarding Forward-Looking Statements

This document includes forward-looking statements, beliefs or opinions, including statements with respect to Avolon’s business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe,” “expects,” “may,” “will,” “could,” “should,” “shall,” “risk,” “intends,” “estimates,” “aims,” “plans,” “predicts,” “continues,” “assumes,” “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved.

Contacts

Ross O’Connor

Head of Investor Relations

roconnor@avolon.aero
T: +353 1 231 5818

Emmet Moloney

Head of Communication

emoloney@avolon.aero
T: +353 1 556 4429

Jonathan Neilan

FTI Consulting

avolon@fticonsulting.com
M: +353 86 231 4135

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