Financial Data and Key Metrics Changes - The company reported a net profit after tax of $787 million for the year ended December 31, 2025, down from $924 million in 2024, but underlying profit rose 18% to $746 million, the highest in its history [4][19] - Total revenues and other income increased by 2% to $2.6 billion in 2025, with total assets at $26.3 billion and net assets per share of $9.86 [5][22] - The company achieved a capital expenditure (CapEx) of $4.2 billion, slightly above the guided expectation of $4 billion [5] Business Line Data and Key Metrics Changes - Operating lease rental income rose to $1.9 billion, reflecting an improvement in lease rate factor to 10.3% [19] - Finance lease revenue increased by 25% to $271 million, driven by strong finance lease receivables [19] - Gains on aircraft sales surged by 81% to $230 million, attributed to robust demand for used aircraft [20] Market Data and Key Metrics Changes - Global passenger traffic rose nearly 4% in January 2026, although growth in Asian markets was tempered by the timing of the Lunar New Year [8] - The value of global aircraft deliveries increased by 28% to $100 billion, marking the first time this level has been achieved since 2018 [6] - The company anticipates a total of 16% growth in delivered aircraft value in 2026, with expectations of an 80% increase in the value of new aircraft deliveries by 2030 [7] Company Strategy and Development Direction - The company aims to achieve $40 billion in assets by 2030, supported by a delivery pipeline of 337 aircraft and $19 billion in committed capital expenditure [8][16] - The company is focused on digitalization and data analytics to enhance operational efficiency and agility [15][16] - The company has increased its dividend payout policy to up to 40% of reported net profit after tax, reflecting confidence in long-term growth [5][54] Management's Comments on Operating Environment and Future Outlook - Management noted that airlines have not yet fully felt the impact of rising jet fuel prices, with the average price per barrel expected to be $88 [9][31] - The company is well-positioned with over $8 billion in committed liquidity to support airline customers amid potential financing needs [10][24] - Management expressed optimism about the demand for new aircraft and the company's ability to capitalize on industry trends [25][26] Other Important Information - The company maintained a 100% lease rate for its aircraft and engines, the only major lessor to achieve this metric [13] - The weighted average age of the owned portfolio was five years, with 84% of the fleet being the latest technology and most fuel-efficient aircraft [13][16] - The effective tax rate rose to 15.9% in 2025 due to new minimum corporate tax rules [22] Q&A Session Summary Question: Impact of Middle East situation on credit risk and exposure - Management confirmed exposure of 25 aircraft with six airlines in the Middle East, all current on lease payments and fully insured [30][31] Question: Engine maintenance costs and risks - Management acknowledged rising maintenance costs but noted improvements in engine durability and supply chain stabilization [37][38] Question: Aircraft delivery deferrals due to Middle East conflict - Management stated there have been no delivery issues or deferrals reported as of now [46] Question: M&A activity in the leasing sector - Management sees ongoing consolidation in the industry as logical and is open to considering opportunities if they arise [48] Question: Dividend payout trajectory and CapEx targets - Management expressed comfort with increasing the dividend payout and the ability to leverage debt for growth opportunities [54][55]

2025 FINAL RESULTS REVIEW MARCH 2026 Disclaimer This presentation contains information about BOC Aviation Limited ("BOC Aviation"), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of BOC Aviation or any of its subsidiaries or affiliates or any other person in any jurisdiction or an inducement to enter int ...