DAE announces Financial Results for the year ended December 31, 2022

Profit before exceptional items rises 37% to US$258.6 million

Arabic version

Dubai, U.A.E., 8 February 2023 – Dubai Aerospace Enterprise (DAE) Ltd today reported its financial results for the year ended December 31, 2022. The consolidated financial statements can be found here

Selected Financial Highlights:

1. 2022 results are adjusted to exclude a net exceptional write-off related to the loss of control of 19 aircraft that are currently in Russia which were previously leased to airlines based in Russia. In compliance with applicable sanctions, DAE terminated the leasing of these aircraft. Accordingly, the Group has written-off its net exposure in respect of the 19 aircraft and this resulted in a net exceptional write-off before tax of US$576.5 million (in relation to aircraft held for lease, maintenance reserves and security deposits and other assets and liabilities) during the twelve months ended December 31, 2022.
2. 2021 results are adjusted to exclude one-time bond redemption costs of US$38.3 million incurred during the twelve months ended December 31, 2021.

• Profit before exceptional items increased 37% to US$258.6 million
• Cash flow from Operating Activities increased 12% to US$1,281.8 million
• Available liquidity of US$2.7 billion; Liquidity Coverage Ratio of 341%
• Net Debt-to-Equity of 2.64x
• Open market bond repurchases of US$146 million

Selected Business and Operating Highlights:

• Number of aircraft acquired: 94 (owned: 46; managed: 48)
• Number of aircraft sold: 33 (owned: 10; managed: 23)
• Lease agreements, extensions, and amendments signed: 143 (owned: 121; managed: 22)
• Owned portfolio contracted: 98.2%
• Number of man hours booked: >1,300,000
• Number of checks performed: 315
• Morningstar Sustainalytics ESG Risk Rating: 14.4
• Further commitments to environmental transparency: ‘C’ Score CDP Disclosure; S&P Corporate Sustainability Assessment Disclosure; signed Aircraft Leasing Ireland Sustainability Charter

Commenting on the results, Firoz Tarapore, Chief Executive Officer of DAE, stated, “Our Full Year 2022 financial results reflect continued air travel recovery, and heightened demand for aircraft from airlines globally. We remain active in all origination channels, acquiring 94 aircraft in 2022 for both our owned and managed businesses.

Our profit before exceptional items increased 37% to US$259 million, and our cash flow from operating activities increased by 12% to US$1,282 million for the year. Our balance sheet at year-end 2022 remains strong with a net-debt-to-equity ratio of 2.64 times, and a liquidity coverage ratio of 341%.

In the final quarter of 2022, DAE completed the acquisition of a company with a fleet of 36 modern owned and committed aircraft. The business was integrated seamlessly into our franchise, and we finished the year with approximately 50% of our owned fleet comprising of next generation, fuel-efficient aircraft.

DAE Engineering recorded its strongest year ever in 2022, producing 1.3 million billable man hours and servicing over 300 aircraft. We welcomed new customers from South America and Asia as we expanded our customer reach. Annual revenue exceeded US$100 million for the first time in the company’s history.”

Webcast and Conference Call

In connection with the announcement of DAE’s results for the year ended December 31, 2022, management will host a conference call on Wednesday, February 08, 2023 at 09:00 EST / 14:00 GMT / 18:00 GST / 22:00 SGT.

The call can be accessed live by clicking here from your laptop, tablet, or mobile device, or by dialing one of the global dial-in numbers and quoting ‘Dubai Aerospace Enterprise’ when prompted.

Full details of the call can also be accessed live via the link on DAE’s website:

www.dubaiaerospace.com/investors.

 Forward Looking Statements

Certain information contained in this Press Release may constitute “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “could”, “continue”, “expect”, “anticipate”, “predict”, “project”, “plan”, “estimate”, “budget”, “assume”, “potential”, “future”, “intend” or “believe” or the negatives thereof or other comparable terminology. These statements reflect DAE’s current expectations and assumptions and involve known and unknown risks regarding future events, results or outcomes and are not guarantees of future results or financial condition. Actual results, performance, achievements, or conditions may differ materially from those in the forward‐looking statements and assumptions as a result of a number of factors, many of which are beyond DAE’s control.

 Non-IFRS Financial Information

This Press Release may include certain non-IFRS financial information, such as Adjusted EBITDA, not prepared in accordance with IFRS. Because of the limitations of Adjusted EBITDA, it should not be considered as a substitute for financial information prepared or determined in accordance with IFRS, as applicable. Where applicable, DAE compensates for these limitations by relying primarily on its IFRS results and using Adjusted EBITDA only for supplemental purposes.