BBA Aviation PLC BBA Aviation Capital Markets Days (1165H)

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RNS Number : 1165H

BBA Aviation PLC

13 November 2018

BBA Aviation Capital Markets Days

BBA Aviation (the "Group"), a market-leading provider of global aviation support and aftermarket services, announces it will be holding two Capital Markets Days for analysts and institutional investors to provide greater insight into our growth opportunities across both our Signature and Ontic businesses. At 11:30 today we will be hosting at our London Luton FBO and on Thursday 15 November at one of our FBOs at Teterboro, New Jersey.

The format of the two days will be the same with presentations from Mark Johnstone (Group CEO), together with Signature and Ontic management, and David Crook (Group Finance Director). We will focus on our two great growth businesses - Signature and Ontic. We will set out our strengths and competitive advantages, the growth opportunities, and our strategy to capture those opportunities.

Signature

Our aim continues to be to outperform the growth in US B&GA flight movements by building on our unique network platform, and through our range of commercial initiatives. We will become more relevant to our customers many purchasing transactions when they fly their planes. The capital markets day presentations will focus on the four stages of delivering more value through leveraging Signature's unique network of FBOs:

   --      Organic growth 
   --      Core revenue source optimisation 
   --      Non-fuel revenue growth 
   --      New services and asset utilisation

Building on the network pricing agreements put in place last year for our larger customers, we will set out the strategy for improved yield management of both fuel and non-fuel revenues from our real estate footprint through both customer segmentation and technology.

In addition, we will set out our plans for the further development of our existing non-fuel services, through the increased penetration of our Signature/Epic card services programme. We will also leverage the increased opportunity in advertising throughout our real estate, which builds on our unique customer group that controls significant wealth.

With regard to new services being brought on line over the next few years, we will be focusing on Elite (our commercial passenger interconnect service) as further evidence of Signature redefining the market reach for B&GA infrastructure.

Through this range of growth opportunities, we are today setting a new target for Signature's market outperformance of US B&GA movement growth by some 250 basis points over the medium term.

We continue to work through a number of investment opportunities that will further enhance and fortify Signature's unique real estate network as we continue to lead the development of the B&GA market. All investments continue to be screened at our 12% pre-tax ROIC threshold.

Ontic

The capital markets days will also provide the opportunity to further explain the Ontic operating model and what drives value creation through the licencing of Intellectual Property (IP) for mature and legacy aviation parts from the OEMs. The business will also demonstrate how it manages the acquired IP portfolio which, in most cases represents a perpetual licence with sole source rights to ensure we value price the parts throughout their lifecycle.

Our Ontic business also continues to see a healthy pipeline of new licence acquisitions and we were pleased to announce the acquisition of Firstmark Corp in September. This business has a product portfolio which is highly complementary to Ontic's and offers organic growth opportunities through its military products and know how. Through effective execution of the licence and M&A opportunities available to Ontic we expect to reach $100m of EBITDA by the end of 2021. We also continue to screen these opportunities at our 12% pre-tax ROIC threshold.

The Group will not be disclosing any new material financial information. The presentation slides will be available on our website www.bbaaviation.com today at 11:30.

Enquiries:

BBA Aviation plc

David Crook, Group Finance Director

Kate Moy, Head of Investor Relations and Communications

(020) 7514 3999

Tulchan Communications

David Allchurch

(020) 7353 4200

Information on BBA Aviation plc

BBA Aviation plc is a market leading, global aviation support and aftermarket services provider, primarily focused on servicing the Business and General Aviation (B&GA) market. We support our customers through three principal businesses: Signature Flight Support, Signature TECHNICAir(TM) and EPIC Fuels which provide premium, full service flight and home base support including refuelling, ground handling and MRO services through the world's largest fixed base operation (FBO) network for B&GA users with around 200 locations covering key destinations in North America, Europe, South America, Caribbean, Africa and Asia. EPIC Fuels is a global provider of aviation fuels, supplies and services. Ontic is a leading provider of high-quality equipment and cost-effective solutions for the continuing support of maturing and legacy aerospace platforms with locations in the USA, Europe and Asia. Engine Repair & Overhaul (ERO)/Global Engine Services is a leading independent engine service provider to global B&GA operators, the rotorcraft market and regional airline fleets with locations in the USA, Europe, South America, Asia and the Middle East.

On 1 March 2018 BBA Aviation announced that it was conducting a strategic review of the ERO business and, at the end of May 2018, management committed to a plan to sell substantially all of the business and the relevant assets and liabilities were classified as held for sale.

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