Doric Aviation Day Going in for Landing

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1 Doric Aviation Day Going in for Landing

2 Content Summary of the Day Overview Aviation Advisory Asset Management & Remarketing The A380 Story Page 2

3 Summary of the Day Boeing Aviation, a growing market also in the future. Doric Aviation Day 2016 Ascend Aviation supply cycle, despite strong demand [there are] several indicators of amber or red. Avocet London continues to be the World s centre of expertise for insuring aviation risks. Aircraft Technical and Remarketing Matters Panel Discussion Pascal Dufour (Airbus) Paul Leighton (AVAC) Phil Seymour (IBA) Page 3

Service Mandate Boeing 767 Assistance in the technical assessment for a Passengers to Freighter conversion of a Boeing

4 Aviation Advisory Airbus A330 On-site staff support for documentation review in a transition of an Airbus A330 from a South American to a European flag carrier. Service Mandate Boeing 767 Assistance in the technical assessment for a Passengers to Freighter conversion of a Boeing ER (records review). Service Mandate Value and lease opinion for Airbus A320 family aircraft. Value/Lease Opinions Participation in special working groups of aircraft and engine manufacturers. Working Groups Page 4

5 Aviation Advisory Investment Advisory/Airline Credit Analysis Analysis of Risk/Return Profile Advising both debt and equity investors Identification of investment opportunities Profitability analysis Full airline specialist credit analysis capability with large airline database Approach is based on airline s most recent finance and operating results, supplemented by forward looking inputs as well as assessment of airline s strategic value to the market it serves and other non financial factors to determine risk level and outlook Each airline scored on 20+ elements to provide balanced comparisons Makes use of data from comparable credits with listed securities to assist in pricing deals for unrated airlines by reading across based on our own risk assessment Page 5

6 Asset Management & Remarketing Asset Management and Remarketing Activities Doric acting as the Asset Manager and Remarketing Agent Aircraft sourcing and phase-in support Transparent tailor-made reporting Monitoring of market, lessee and aircraft Routine physical inspections of aircraft and records audits Aircraft technical management and administration (ongoing during the investment cycle) Maintenance reserves and claims handling management Aircraft phase-out support Market analyses/positioning of assets Development of remarketing strategies Analysis of cash flow projections Technical upgrades and enhancements Technical project management and transaction execution coordination Documentation support Monitoring technical checks Page 6

7 Asset Management & Remarketing Hands-on asset management and remarketing Before After October 2010 February 2011 Hamburg International Repossession of aircraft Identification of new lessee C check and repainting Germania Page 7

8 The A380 Story Misconception Until recently the A380 was perceived to be a luxury palace of the sky, only suitable for large flag carriers focused on heavily travelled routes with premium traffic between mega-cities. Examples of extravagant A380 interiors: A380 Lobby A380 Residence A380 Bar A380 Shower Page 8

9 The A380 Story Market Application Due to absence of non-extravagant used A380s, other airlines could not introduce such A380s and benefit from a very compelling business case. Without very long lead times and without the requirement for long term leases, Doric is offering used A380s that fit well with dynamic business plans of airlines. Through the availability of used, young high-capacity A380 s, flag carriers and widebody (wet-lease/charter) aircraft operators can now introduce the A380 into their fleet and develop business opportunities not feasible before. Assistance with aircraft phase-in and availability of extensive support after entry into service, minimize risks and ensure a reliable operation of the A380. Page 9

10 The A380 Story Solution With used A380s having lease rentals about 40 percent cheaper than brand new A380s, and offering flexibility on release tenors which on new aircraft are normally not for less than 10 years, used A380s are an attractive choice. No other modern high-capacity aircraft can compete with a used high-capacity A380 available from Doric. Used A380s present a very good value proposition for those who want to come in at a slightly lower price. Tim Clark, Emirates CEO Flightglobal 19th April 2015 Page 10

11 The A380 Story Potential Operators Existing A380 operators looking for expansion. Operators which always wanted the A380 but could not afford it due to lease rentals, lease duration. Operators having a limited number of heavy routes for the A380. Categories of candidate operators flag carriers, charter operators, wet lease operators. Page 11

12 The A380 Story Status Quo Airbus support Preparation for redelivery Screening of secondary market candidates Original and secondary market configuration Reconfiguration assessment Active remarketing On going maintenance support Page 12

13 Thank you for your attention Contact Doric GmbH Berliner Strasse Offenbach, Germany Tel Page 13

14 Disclaimer This presentation is for informational purposes only. The presentation constitutes neither an offer to purchase, nor a solicitation to purchase any securities, investments or investments of any kind. It is intended solely for the recipient and may not be copied or distributed in any other manner or published. Page 14

Risk Mapping Technical Services. Asset Management. Aircraft Valuations Analysis. Member of ISTAT UK CAA Approval No. UK.MG.

Asset Management Risk Mapping Technical Services Aircraft Valuations Analysis Market Intelligence P2F Advisory Member of ISTAT UK CAA Approval No. UK.MG.0622 www.iba.aero Established in 1988, IBA is a