Nordic Aviation Capital DAC (NAC, the Company), the world’s largest regional aircraft lessor, today announces its financial results for the 12-month period ending 30 June 2020. 2019/2020 was an extremely challenging year for the business and while NAC posted its strongest first-half financial performance in its 30-year history, it was followed by its most challenging last quarter to date on the back of the COVID-19 pandemic.

Key highlights:

• Recorded the strongest first-half performance in NAC’s 30-year history. The Business Performance result was close to double the result for the same period in 2018/19

• Priced a record-breaking US private placement of US $859 million in February 2020, representing the largest private placement by an aircraft lessor in the history of the market

• Celebrated the opening of its new headquarters in Limerick, Ireland

• Recorded a 22% increase in placements and extensions compared to last year including the execution of 65 lease extensions with existing customers

• Increased lease revenue by 2% to US $760 million

• Reported EBITDA of US $686 million. Generated cash flow from operations of US $377 million over the year and recorded US $490 million in unrestricted cash

• Recorded total assets of US $8.1 billion and total debt of US $5.7 billion

• Due to the significant impact of COVID-19 on the business, material impairments of goodwill and other intangible assets led to a loss of US $639 million for the year

• At financial year-end, many of NAC’s customers had entered into short-term rental deferral agreements and/or were in arrears on their payment obligations. As a result, trade receivables and expected credit losses thereon have increased. Despite this, the cash collection rate on revenue during the financial year was 77%

• Proactively undertook several processes to mitigate the negative effects of COVID-19 on the business, including:

• Shareholders collectively injected US $60 million of new equity into the business
• Through an approved Scheme of Arrangement, reached an agreement with lenders to standstill on and defer debt obligations for a period of 6-12 months, to ensure stability as the aviation market gradually recovers

• Recorded owned and managed fleet of 490 aircraft with commitments for another 71 aircraft taking the fleet to 561

• Remained the #1 regional lessor with the fleet representing 8% of the global regional fleet and 29% of the regional fleet owned by lessors: and,

• Welcomed new CEO Patrick de Castelbajac. Patrick has almost 20 years’ experience in the aviation industry and a long-standing relationship with NAC from his time spent as CEO at ATR

Commenting on the Company’s performance, Martin Møller, Chairman, and Founder of NAC said:

“In my 30 years in aviation, 2019/20 has been, without a doubt, the single most challenging year”.

He continued, “NAC entered the crisis in a strong liquidity position having posted its strongest first-half financial performance in its 30-year history. The Company was on track to deliver its 24th consecutive year of increased profitability; however, as COVID-19 began to surface in early 2020, what unfolded was the gravest crisis the industry has ever known. The world entered a crisis of epic proportions, posing a threat to every human being and business. The results clearly reflect the significant impact of this unprecedented crisis.

I am very proud of the NAC team, who have worked tirelessly with our shareholders, lenders and creditors to ensure that we are best positioned to face the challenges ahead. The recently approved Scheme of Arrangement and the cash injection from shareholders ensures that NAC is financially well placed now and into the future. While the timing of the recovery remains unclear, I am confident that the regional sector, as in previous downturns, will be the first to recover and that NAC will be at the forefront of that recovery.

On a final note, I would like to bid farewell to and personally thank Søren M. Overgaard for his 8-year service to NAC. I wish him the best and look forward to continuing a strong working relationship with him as he joins my family office as CEO”.

Patrick de Castelbajac, Chief Executive Officer, Nordic Aviation Capital, said:

“I look forward to leading NAC through this critical period. What lies ahead is, undeniably, a challenging period for the industry. With our strong business fundamentals and the right team in place, we are well equipped to overcome the current crisis and to emerge stronger and more robust in the aftermath”.