Thank you. Welcome to everyone and thank you for joining our presentation.

Please note that certain statements in this presentation, including certain answers to your questions, are forward-looking statements, including without limitation, statements regarding our future operations and performance, revenues, operating expenses, and other income and expense items. These statements and any projection as to the company's future performance represent management's estimates of future results and speak only as of today, 30 September 2026.

These estimates involve risks and uncertainties that could cause actual results to differ materially from expectations. Further information on the factors and risks that may affect Avation's business is included in Avation's regulatory announcements from time to time, including its annual report and half-year results announcements.

Avation assumes no obligation to update any forward-looking statements or information in light of new information or future events. Unauthorized recording of this transmission is not permitted.

I'll now hand over to Jeff Chatfield, Executive Chairman.

Thank you very much and good afternoon. I'll provide you with an overview and update for the financial results.

If we can have the next slide, please. This is a snapshot of the business at 30th of June.

We had at the time 33 aircraft. We had 16 customers around the world.

The principal business of the company is narrow-body aircraft, we had 59% narrow-body aircraft by value. Credit ratings have improved and they're B, B1, single B.

9.1 years average aircraft age, 3.8 years remaining lease term, $1 billion in assets, and $303 million in unearned contracted revenues. Next slide, please.

The portfolio at 30 June, we have 15 ATR 72s in the current fleet with 13 on order, followed by 19 purchase rights that go roughly out to 2032. We have numerous narrow-body aircraft, principally Airbus A321-200s.

We have an Airbus A330 and we also have a ATR engine, which is a Pratt & Whitney 127M on lease. Next slide, please.

Customers, this displays our customer de-concentration because we've been spreading them out as much as we can. We like to have sort of two aircraft with an operator, we've been adding names to this list since the last time we presented, such as Finnair, Cabo Verde, etc.

Our strategy has been to further diversify, which lowers the risk and gives us opportunity to place aircraft with existing customers should they become available. We've done a fairly good job in increasing the diversification.

This slide is as at the current date, 30th of September. Next slide, please.

For the financial results, the details, I'll pass to our new Chief Financial Officer, Mr. Andrew Hiscock, which will run through them.

Thank you, Andrew.

Thanks very much, Jeff. Yes, the first slide, if we could go to the next slide, please.

Our first slide here sets out the key financial highlights for the year, and the major headline is that the group has delivered a very healthy profit of after-tax of $8.4 million for the year. In addition, we've improved net asset value per share by nearly 20% to $4.39 or £3.33, and off the back of this we're very pleased to announce a a dividend of 1.5 US cents, being a 50% increase on the last year.

In November of last year, we issued our new $300 million unsecured notes, de-risking the balance sheet by taking out the maturity to 2031, and we redeemed our old notes which would have matured this year. S&P Global Ratings have upgraded us in the year from B from B- to B.

Moody's assigned a B1 rating and Fitch maintained its B, and all the ratings agencies have given us a stable outlook. Since year end, I'm very pleased to report we've also signed a $100 million committed warehouse facility, which will be drawn down as we as as needed to support our future growth.

Next slide, please. Moving on to operational highlights, we've had a very busy year.

We took delivery of two ATRs and placed them straight away with newly custom new airlines, and we also completed the sale of the Boeing 777 in September of last year, making a $4.1 million profit in the process. On the transaction side, we transitioned five ATRs to new customers on six or eight-year leases, and we extended our Airbus A330 lease with EVA Air by four years, which takes the lease out to 2031.

Turning to our order book, with ATR we now have 13 aircraft on order with deliveries out to 2029, and we hold the additional 19 purchase rights with deliveries taking us out to 2034, which provides us with a solid plan pipeline of turboprop growth over the next few years. Since the year end, I'm also pleased to report we signed a lease on two ATRs with Finnair, the national flag carrier of Finland, and one of those aircraft has already been transitioned with the other one imminent, and we also recently signed another lease on a new ATR with another customer, which again is taking delivery very soon.

Next slide, please. Turning to the the result summary, our total income was comparable year-on-year at $112 million, and this reflects strong levels of utilization in the year and includes maintenance reserves of maintenance reserve revenues of $21.6 million and end of lease compensation of $6.9 million.

Very pleasingly, this feeds through to a healthy profit at the operating profit level, where we delivered $64 million, flowing down to profit after tax where we achieved a strong $8.4 million result. I'll share a little bit more detail underlying performance and comparables in the next slide.

Moving on here, we have total cash balances, again healthy at $105 million, a reduction of $25 million since last year, principally driven by high levels of maintenance reserve utilization this year in planned shop visits and also share buybacks, which we'll talk about more later. On debt, we continue to pay down principal on secured debt, achieving an $80 million reduction in net indebtedness, which reduced to $523 million at the year end.

This culminated in our NAV per share improving to £3.33 or $4.39, which also significantly benefited from the share buyback program, having bought back more than 10% of the equity in issue in the year. Next slide, please.

As in prior years, the we wanted to give you some explanatory notes on the operating profit and profit before tax, which includes some significant non-cash items. I've separated them out here to show the underlying strong performance of the group and also assist on the year-on-year comparison.

Looking at the top section first, that's the operating profit where we have $64.3 million, which includes a one a $1.4 million unrealized loss on revaluation of our aircraft purchase rights and deposits, being significantly smaller than last year's charge. This is because in our Black-Scholes pricing model, the natural reduction in option values as the purchase rights approach maturity was largely offset by independently assessed ATR value increases and an increase in the treasury yield curve inputs into the equation.

This resulted in a much slower resulted in a much lower net charge of $1.4 million versus the $21.6 million last year. As you can see, by adding that back into the non-cash items, underlying operating profit just under $66 million, comparable with last year's operating performance.

Now on the second half of the bottom half of this of the of the slide, profit before tax also includes costs associated with the final redemption of the company's old notes, which were were redeemed in 2025. The total costs there of $4 [plus?]

$10 million, making $14 million made up of amortization and redemption losses, were booked last year were booked in the year, but I'd like to emphasize that following the redemption, this amortization and the cost is now complete and will not impact future periods. Adding back both non-cash items, underlying profit before tax just under $26 million, again comparable with last year's performance.

Next slide, please. Moving on to debt, we can present a very healthy picture where we've reduced our total loans by $76 million with net indebtedness having followed and reduced to $523 million.

Our weighted average cost of debt increased slightly from from 6.6% to 7%, predominantly reflecting the mix effect where the unsecured notes now represent a larger proportion of our total debt with the secured debt having been paid down, and a very slight increase on average interest rates on debt, reflecting market conditions. Importantly, we've fixed more than we we've fixed more of our debt in the year, and now 97.3% of our debt is fixed, we are very well protected against future interest rate volatility.

Overall, we've improved our net debt to total assets ratio by reducing it by 2.5% to 52.3%, and notes that all the ratings agencies indicate a stable outlook for the company. Next slide, please.

Turning to the key ratios, our NAV per share improved by 19.9% to $4.39 or £3.33. 8% of this increase reflects higher equity, and 12% represents the significant accretive effect of our share buybacks.

In pound sterling terms, the increase was also helped by a 4.8% effective exchange rate movements. Lease yield eased slightly to 10.7% from 11.3% in the year, principally due to the application of IFRS 16 on the four-year lease extension of the A330 with EVA Air, where the IFRS requires us to reflect the renewal rate into the revenue recognized from the date of signing the extension.

On an underlying basis, lease yields remained comparable year-on-year. Administrative expenses rose to 9.3%, principally due to high levels of of transaction activity already discussed, as well as as well as staff costs where we've taken on high levels of contracted staff in in the sales and marketing around the world, and general overhead costs increasing as well.

Turning to key metrics, the picture is strong on all the key measures with debt-to-equity improving to 2.2 times and net debt-to-EBITDA improving to 5.3 times. For those with a focus on cash, the funds from operations to debt ratio improved from 9.5% to 10.2%, whilst EBITDA to interest expense improved to 2.5 times.

Overall, credit quality continues to strengthen. Next slide, please.

Finally on liquidity, operating operating cash flow was $31 million in the year versus $91 million in 2025. The year-on-year difference is really explained by working capital movements in finance lease receivables and maintenance reserves, which were broadly neutral this year compared to significant inflows in 2025.

The prior year included an inflow from the sale of two ATRs on finance lease, and also maintenance reserve utilization was significantly lower last year versus this year because of some shop some planned shop visits that we had this year. Our principal use of cash included nearly $49 million on on the capex program for our aircraft and the engine, the engine having been used as a sales tool, and we spent over $15 million in share buybacks, which has improved the NAV per share, as already mentioned.

Finally, we also bought back $14 million on bonds: $12 million on the on the old bond, and to date $2 million on the new bond, which we hold in treasury. In summary, we remain focused on disciplined capital allocation to enhance shareholder value.

All our debt is current, and we remain in compliance with all of the covenants. The cash balance at $105 million, the main reason for the reduction being the maintenance reserve utilization, share buybacks already mentioned, and of that balance, 50% was unrestricted, which is 9% up on last year, giving us operational security.

That, along with other sources of liquidity liquidity, being the refinance bond, the 10 unencumbered aircraft that we have at year end, and other refinancing opportunities, as well as the new $100 million committed warehouse facility, all provide meaningful flexibility to grow. Thanks very much for your attention.

I shall now pass back to Jeff to discuss the outlook and strategy.

Next slide, please. Next slide, please.

We are continuing to take delivery from our order book and placing new ATRs because clearly we have a lot on order. We are continuing to transition or new leases on the ATRs.

We're attempting to secure opportunities to grow the narrow-body fleet in the secondary markets, as well as with sale and leasebacks from airlines. We're looking to either prepare to either transition or extend the four airBaltic Airbus A220s.

We're continuing to broaden the group's funding and capital base, as we've demonstrated by getting a $100 million warehouse in to support growth. Next slide, please.

Clearly there is a big opportunity to place ATRs. On this slide, it talks about the replacement curve principally, where 1,100 aircraft will need to be replaced up to the year 2044, which is a lot.

It's probably more than they can make, it's a very good situation to be in, to have an order book. There's also growth, and we've demonstrated that by adding new clients, and one of our strengths has been to place new ATRs with new clients.

We have an additional growth there of 19 additional ATR aircraft. Next slide, please.

In summary, the summary of the situation is we've returned to profitability, we've reduced our debt significantly, we've refinanced the $300 million bond, which would have been due now, so that was done last year. We have a lot of transactions.

Clearly there's a lot of transitions, there's a lot of new aircraft, there's second-hand aircraft, there's a lot of activity. The order book gives us fleet growth, and I guess the challenge for the company is to be able to buy aircraft in the secondary market or by sale and leasebacks with airlines so as to be able to grow.

Next slide, please. Thank you very much for the listening to the presentation, and we'll allow the floor to be open for questions.

They've given you instructions on Q&A, I'll pass back to the operator for now.

Thank you very much. I will share these around.

I'll answer the first one. The first one's from Mangas, re aircraft at airBaltic, termination fees, and so on.

They've also asked, are we considering buying some of the new aircraft orders? I'll split that question into two.

We have four aircraft with airBaltic. AirBaltic has decided to go down a Chapter 11 process in the United States.

Our view will be we are willing to work with the airline to continue to lease the aircraft, if that's appropriate, given all of the aircraft at airBaltic are leased. That would be in sensible commercial terms.

Clearly, an airline that has all of its aircraft leased needs to come to sensible commercial terms with its lessors in order to keep the planes. Failing that, we will simply transfer them somewhere else.

We have about $23 million in reserves and deposits against those aircraft, we're sort of well-secured. Tony Romano, who is on the call and would love to jump in for the second half of this question, is probably the most experienced A220 marketer in the world.

Tony, do you want to just jump in for a minute and talk about the market? No Tony?

Tony, please unmute your line. Thank you.

Mute.

Sorry. Yes, the A220, fuel-efficient, liquid asset, number of customers which are growing each year, evidenced by the AirAsia order.

We're in contact with a number of operators looking for a second home, should we need to, as Jeff said, with the confidence in airBaltic continuing. The airplanes will stay.

If not, we have a backup plan for those airplanes.

Perfect. Thank you.

The next one's from Douglas Runte at Deutsche Bank, talking about fuel. Have we discussed any arrears or requests for rent deferments, excluding airBaltic?

I'll answer that quickly. No, we haven't, actually, which is interesting.

A220s don't use a lot of fuel per se. They're 20% more fuel-efficient than anything else, and ATRs sip fuel.

If you're an operator, you'd want to fly ATRs or A220s. No, no one has actually asked us for a deferral because of fuel.

The next question is someone's asked, who can you transfer A220s to? There's hundreds on order, so that's not factually correct.

There's plenty of A220s on order and big airlines are now taking them. Next one, and we've just successfully transitioned a couple of aircraft from a weak operator to Finnair.

We're really experienced in this. We did I think 13-ish from Virgin, which was a sort of a challenge, which was a lot of aircraft, but we do it all the time.

We transition them. That's sort of what a lessor does for a living.

Sadly it does cost a bit. You've got legal fees and you've got to bring them up to spec, which is a pain, but that's what you need to do, it's the cost of doing business.

Next question, lease yields. I think Andrew Hiscock would love to answer this one.

Yes, as I touched on in the presentation, lease yields come down from last year's 11.3% to 10.7%. Most of that is driven by the IFRS 16 adjustment where from the date of signing the extended lease, we have to recognize the reduced rent that we anticipate for the renewal.

On a cash basis, we'll obviously still be bringing income in at the old rate. There was a slight effect as well from the transition of the two ATRs to Finnair, but that's now behind us, it should improve as well.

I think from just a general perspective, a steady state is around 11.3%.

His question goes on for more. The utilization at the moment is 100%, aside from the airBaltics and others.

Next question, can you give more granularity to pacing in the ATR order book? This is perfect for Tony Romano.

Tony? On mute, I think?

No Tony, well I'll answer it. The aircraft are sort of three and four a year, it is quite slow, sadly, because they don't make that many of these things, and they're super popular and basically sold out.

It's not fast, but it is there. The second question Douglas asks, can the warehouse be used for PDPs?

The answer is not really. The warehouse is for aircraft.

Next question is the buyback program. We will continue with our buyback program because we had a lot of investors give us feedback from the UK saying that they like the buyback program.

The investors sort of suggested that it would be really good for the whole company to buy back shares, which we have done and it's been a very successful program. The next question is breakdown the NAV in percentage terms by existing fleet.

That's broken down, you could do that if you look at the slide in the presentation with the pie chart on the right and the fleet on the left, you could sort of work it out. The next question is 18 months since DAE took over Nordic, can you run through the market impact that in the ATR market?

I think this is one for Tony within reason, if he's off mute. Tony did work at DAE for a while, or NAC, as well as Airbus.

Do you want to comment on that, Tony?

The market's buoyant for ATRs. As we said earlier in the presentation, there's really no competition in that space now that Bombardier is no longer producing regional turboprops, it's an active buoyant market with a lot of confidence in it.

The next one's from Damian Brewer. Can you comment on financing for new fleet direct deliveries?

Do we see a certain loan-to-value? This is a question ideally for Ashley, Ashley Nicholas, who deals with the banks.

Ashley?

Yes, interestingly, I was just at a conference in Europe just recently, and there were plenty of bankers and lenders all willing to and wishing to lend money at 75%-80% debt-to-value. Plenty of liquidity on that side.

Next question is from René. How can you claim that book value of the purchase rights is so high when an Indian startup airline can order 40 aircraft, probably at a much lower cost?

That's speculation around an order. The production rate is probably around 40 a year.

If they've sold out for the next few years, the Indian startup in theory would be waiting for the end of the decade to be able to get their first aircraft. The value of our aircraft is we can place them in mid-next year because we've got them being delivered.

If you're an airline, you don't want to wait till the end of the decade. There's a very good question.

From Rob Bird, what's the strategy of adding more narrow-body aircraft and the availability of A320s? At the moment, aircraft prices in the market are extremely high.

The transactions that we're seeing, there must be investors out there that are diversifying their portfolios. In terms of financial investors diversifying, and they are driving aircraft prices to extremely high levels.

Clearly, we're in the business and so we don't want to overpay. It's very important to get a good price at the start.

The challenge for us is to have a bilateral deal with another lessor or with airlines in SLB situation, sale and leaseback situation, where we can get aircraft that are at a sensible price so we can deliver profits and be cash flow positive. Clearly, it's not easy, not in an environment where aircraft prices are this high.

We don't have a perfect answer for that, but we are working on it. The next question is from John Cherney around PPE and notes and perfect for Andrew Hiscock.

Okay. Thank you.

The first question was on PPE. We will be providing, obviously, in the results when the audit's complete, we'll be providing a full note on PP&E.

Your question around depreciation, the revaluation gains obviously don't go through the P&L, the impairment reversal as a result of the firmer residual values does, partially offset some of the depreciation. The revaluation gain, obviously, that comes back as a higher depreciation charge later.

In regard to lease yield, you asked if lease yield was 11.5% at the half-year. As I mentioned earlier, yeah, the IFRS 16 impact has brought the percentage down a little bit.

Then with the two aircraft ATRs transitioning to Finnair, that also brought it down a little bit as well. That's now going back up as the aircraft are all fully utilized again.

The next question is from Renee Maxwell around airBaltic and Seabury. We can't really comment.

We need to have a negotiation around the extension of or termination of any aircraft with airBaltic, and we haven't had that yet. We don't expect a material change over the long term.

Next question is from Michael Ronzio asking about bond yields. Ashley could talk about capital allocation.

Yes, of course. We have obviously the pipeline of orders, we have cash that's allocated to those.

Any aircraft that are available that we can purchase off the secondary market or SLB market. Then if there's surplus cash after that, then we're looking at the next best use.

You're right to point out that the bond is undervalued and the yield is high, we consider it to be extremely good value and we have been buying it back continuously. We think it's great value and we'll continue to do so while it's cheap.

Thank you for that. The next one's from Mark Littleton about the share price.

We've been doing everything, we've brought out a great set of results, we've increased our dividend by 50%, we've generated a solid profit, we've increased the net asset value of the shares to £3.33, and yes, the share price hasn't changed, but if you know the reasons why, write to us and tell us. Can you respond to the main question, this is from Renee Maxwell, you've cancelled the 20% of the stock with no impact on stock price?

I guess there's been more than 20% of the stock for sale is the answer, I guess.

It has had an impact on EPS, Jeff.

Of course. It's been great for the remaining shareholders.

The NAV's increased and the EPS per share's increased, which has been good thing. The next question, Brandon's congratulating us on a good year, talking about the NAV, lease rates for A220s.

Tony, do you want to talk about the A220 market? I see they're $40 million aircraft these days.

Tony, do you want to talk about lease rates in general?

What

you think about... I think

as the market tightens, we're going to see an uptick in lease rates on the A220 as they become more and more popular, even as Airbus continues to deliver them. Definitely looking at an uptick in the lease rates going forward.

I think I've covered most of the questions. Is there anything, Ashley, have I missed any main questions there?

Not that I can see, but I think the general trend is, obviously, interest rates have been rising and that feeds through to lease rates. We have seen that that's feeding through gradually, but apart from that, I think most of it's covered.

We can compete with the bigger lessors because we have a blended mixture of bonds as well as asset-backed lending, whereas a lot of the big lessors only issue bonds. We're competitive in the sense that we can do business at the same yield.

All right. I think that covers it.

I'll hand back to the operator now. Thank you very much.