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02/10/2018BBA Aviation 0

www.bbaaviation.com

BBA Aviation plcCapital Markets Day

Enabling Flight, Expanding Horizons

Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages

www.bbaaviation.com

Forward Looking Statements

This presentation contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and services; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome of litigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

2Signature operations Signature commercial OnticOverview Strengths & Competitive Advantages

AGENDA – London Luton

TIME SPEAKER

11:45-12:05 Mark Johnstone Group CEO Welcome and introduction

12:05-12:25 Tony Lefebvre Signature COO Presentation

12:25-12:50 Shawn Hall Signature CCO Presentation

12:50-13:20 Lunch

13:20-13:45 Gareth Hall Ontic President Presentation

13:45-14:05 David Crook Group FD Presentation

14:05- 14:45 Mark Johnstone Group CEO Wrap-up and Q&A

14:45-16:15 Site Tour

16:15 Day concludes

AGENDA – Teterboro

TIME SPEAKER

9:30-9:55 Mark Johnstone Group CEO Welcome and introduction

9:55-10:15 Tony Lefebvre Signature COO Presentation

10:15-10:40 Shawn Hall Signature CCO Presentation

10:50-11:05 Coffee

11:05-11:25 Gareth Hall Ontic President Presentation

11:25-11:40 David Crook Group FD Presentation

11:40-12:15 Mark Johnstone Group CEO Wrap-up and Q&A

12:15-12:45 Lunch

12:45-14:15 Site Tour

14:15 Day concludes

402/10/2018BBA Aviation

www.bbaaviation.com

Mark Johnstone

Group CEO

BBA Aviation team present today

Mark Johnstone, Group CEO

David Crook, Group FD

Kate Moy, Head of IR & Comms

Maria Garton, Group General Counsel

Gareth Hall, Ontic President

Tony Lefebvre, Signature COO

Shawn Hall, Signature CCO

David Blizzard, Company Secretary

Matthew Pritchard, Ontic Cheltenham site director

Gareth Blackbird, Ontic FD

Jen Chase, Group FC

Eric Hietlela, SVP ops, Signature Western region

Purpose of CMD

Strategy to Capture Growth

Growth Opportunities

Strengths & Competitive Advantages

Access to Senior Management

BBA Aviation – our investment case

Clear market leadership positions in end markets with long-term structural growth drivers

Significant barriers to entry underpin sustainable competitive advantage

Low fixed cost base with flexible cash investment requirements

Multiple organic and inorganic growth opportunities across Signature and Ontic

Attractive financial model with strong free cash flow generation

Growth and Value Creation

Fortified Network & Expanded Portfolio

Operational Efficiency &

Process Improvement

Technology Solutions for Customers

Improved Customer

Experience

Data Empowered

Decision Making

Focused strategic goals to drive growth and value creation

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9Signature commercial OnticOverview Strengths & Competitive Advantages Signature operations

BBA Aviation portfolio

Signature

ROIC=12%

# 1 Market Position

Unrivalled global network – 400+ locations

Long leaseholds >17 years

$1.6bn sales / $330m OP (2017)

Real Estate platform for non-fuel growth

IP controlled rights

3 locations

$209m sales / $53m OP (2017)

OEM approved ERO provider

14 locations

ROIC<5%

$513m sales / $12m OP (2017)

Asset held for sale

#1 licence partner of OEMs

Diversified product portfolio

ROIC=15%+

Proven management team

EPIC +$400m of sales

Proven management team

Firstmark + $27m of sales Market position #2

BBA Aviation – a focussed aviation services company

Signature revenue

Ontic revenue

Signature OP

Ontic OP

Commercial

Military

North America

Rest of World

2017 revenue / underlying OP splits by business, market and geography

1102/10/2018BBA Aviation

Signature Flight Support

www.bbaaviation.com

Total US airports

US business jet airports

Signature US FBOs

Total gallons sold in US

Signature gallons sold

21,300

277M => 34% share

US FBO market – highly fragmented with further potential to grow market share

Signature - #1 position, and in the right locations with untapped long tail

Signature US gallons represent 34% of total gallons in US markets

Of the top 100 airports, Signature gallons are 46% of the total

Signature network covers 68% of the fuel burn in the top 200 US airports

Signature contracted customers account for 39% of gallons sold

Signature contracted customers operate c.2,000 aircraft which is 14% of the operational fleet in the US

Thus over 11,000 aircraft we do not have a contracted relationship with => long tail opportunity.

Signature – Continuing to Transform the FBO industry => #1 FBO provider

#1 Global FBO Operator and service provider to B&GA industry

Signature 2023…

- 600+ FBOs

- Enhanced non-fuel income

- Technology leader in the FBO space

- Platform for customers

- B2C and B2B

Signature Today

- 199 owned FBOs includes 19 Signature Selects

- 205 EPIC FBOs plus c.100 unbranded FBOs

- 18 TECHNICAir locations

EPIC acquired July 2018

- 205 EPIC branded FBOs

- c.100 non-branded FBOs

- QT Pod self fuel technology

Signature 2016

- Landmark added 62 locations

- GASAM created

- 18 Signature Selects

Signature 2012

- 115 FBOs

- TECHNICAir 8 locations

- 3 Signature Selects

Signature – Market Drivers

Aircraft Utilisation

Macro Economic

Drivers

Operational Installed

Corporate profits

R² = 0.773

- 500 1,000 1,500 2,000Bu

Corporate profits (billions, USD)

Signature Market Drivers – Macro Economic Drivers

Macro Economic

Drivers

R² = 0.857

- 5,000 10,000 15,000 20,000 25,000Bu

GDP (billions, USD)

Macro Economic

Drivers

Long term (25yrs+) through cycle structural growth of 2%+ CAGR

GDP (Billions in 2009 Dollars) FAA Business Jet Flight Hours (Thousands)

US B&GA Flight Hours and GDPMacro Economic

Drivers

Macro Economic

Drivers

Macro Economic

Drivers

Macro Economic

Drivers

Operational Installed Fleet – stable for next 10 years

Over the next ten years, the geographical distribution of the B&GA fleet is expected to remain broadly unchanged

B&GA fleet development by region, 2017-27 [% of global fleet]1)2)

Source: Teal, ACAS, Honeywell, Roland Berger

1) Excludes migration effects; 2) Fleet with unknown operating region excluded from analysis; 3) Asia includes Pacific Rim

2017: 20,1002027: 22,800CAGR: 1.3%

North America

2017: 4,3002027: 4,900CAGR: 1.4%

Latin America

2017: 1,6002027: 1,800CAGR: 1.5%

Middle East and Africa

2017: 3,7002027: 4,500CAGR: 2.1%

Europe

2017: 2,1002027: 2,600CAGR: 1.9%

Asia3)

63% 63%

13% 13%

12% 12%

2017 2027

2017 2027 2017 2027

Macro Economic

Drivers

Macro Economic

Drivers

Part 135 Part 91 Part 91K

Signature Market Drivers - Aircraft Utilisation

Part 91kFractionals –e.g. Netjets

Flight Hours by Certificate Type

Part 135 Charter –on-demand operators e.g. Wheels-Up, Vistajet

Source: ARG/US based on US market for last 12 months ending Sep 2018

Part 91 Corporate / Private Owner Operators

Flight Hours per Aircraft per year

Part 91K Part 135 Part 91

Leveraging our Signature network to deliver more value

- Market leadership

- Competitive strengths

- Flexible operating model

- Service enhancements

- Network agreements

- Alignment with customer segments

- Pricing optimisation (incl. real estate)

- Flight related (e.g., catering, credit card, maintenance)

- Aircrew(e.g., rental car, hotels)

- Real estate (e.g., hangar, advertising)

- New passenger services (e.g., Elite, black car, hotels)

- Customer stickiness

- Aircraft operator loyalty

- Passenger loyalty

Organic Growth

Core revenue source optimisation

Non-fuel revenue growth

New services and asset utilisation

www.bbaaviation.com

Balanced portfolio and business structured to deliver growth

$235M global business – proforma for Firstmark acquisition

New Spares

New OE

Military

Commercial

Electronics/Avionics

Electro/Hydro-Mechanical

Engine Comp

Land Gear

24% 58%

13% 47%

Chatsworth, CA

Creedmoor, NC

Plainview, NY

Cheltenham, UK

Singapore

Scalable structure and strong product competency enabling growth potential

Large addressable market for Ontic

In Service Fleets

In Service Aircraft – 156,000

Legacy & Sunset

Active Aircraft38,000

Global Aircraft MRO Spend

Component & Engine Spend $40B

Legacy Opportunity Space

$9.6Baircraft >25Yrs

Rotorcraft

Military

Commercial

Huge opportunity for Ontic, significant room for growth

High quality earnings through proprietary and sole source positions

Sole Source RevenueProprietary Revenue

Sole source positions drive long term recurring revenue streams

Non-Prop

Non Sole Source

Sole Source

$100-110m (1x depreciation)Capital expenditure

Ontic licences

M&A opportunities

Core dividend –sustainable growth

Return to shareholders

Disciplined capital allocation framework – Executing to Plan

Growth

and Value

Creation

Process Improvement

Improved Customer

Experience

Data Empowered

Decision Making

Strategic Growth Initiatives

FCF of $250-300m

$30-35m

$100-150m

c.$140m

To maintain 2.5x leverage

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www.bbaaviation.com

Tony Lefebvre

Signature Chief Operating Officer

- Market leadership

- Passenger loyalty

Organic Growth

Focus areas – detail to follow

What is an FBO?

Real Estate Anchor

FBO stands for “Fixed Base Operator”.

Signature FBOs provide premium flight support services including:

- GA Aircraft ground support and fuelling

- Hangar and office leasing

- Concierge services

- De-icing

- Line maintenance

- Ground handling for transport-category aircraft

- Airline fuelling in select markets

London Luton

- #4 busiest B&GA Airport in Europe

- 13,400 movements p.a.

- 3 FBOs on the field (2 Signature)

Redevelopment

- 45 year lease extension

- $34m redevelopment project

- New FBO 15% larger with 50% more parking

- Increased hangarage of 190 square metres

Highlights - Luton FBO

Teterboro New Jersey (TEB)

- Busiest B&GA Airport in the world

- ~142k movements

- Airport lease through 2035Signature

Signature East

Signature South

- Signature - 3 FBO facilities - 5.2 acres aircraft ramp- 80k sq ft hangars- 15k sq ft office / shop space

Highlights - Teterboro FBO

Signature SelectSignature EPIC

The Signature FBO Network

Opportunities to:

- Harmonise the branding and store fronts

- Transition to a single loyalty programme

- Leverage common technology and customer data management

The world’s largest FBO network

Geographic base locations FBO Locations

7030 29 17 14

Signature Atlantic Million Air Jet Aviation Sheltair Tac Air

Operated Epic Select

19 Select

Signature

EPIC Select

180Signature

19Select

Not just the most dots on a map…but the right dots on the map

- FBOs at 37 of the top 50 US General Aviation markets by flight count

- including all 10 of the top 10

- Industry leading network relevancy

- Large scale infrastructure and facilities capable of handling high volume operations up transport category aircraft

- Exclusive presence in markets

Locations# of operations

in 2017% of total US movements

Teterboro (TEB) 141,865 3.7%

Westchester County (HPN) 61,958 1.6%

Dallas (DAL) 58,955 1.6%

Washington (IAD) 57,176 1.5%

Las Vegas (LAS) 51,768 1.4%

Van Nuys (VNY) 51,424 1.4%

Palm Beach (PBI) 50,440 1.3%

Houston (HOU) 50,415 1.3%

Chicago (MDW) 47,968 1.1%

DeKalb-Peachtree (PDK) 41,372 1.1%

Total top 10 US FBOs 613,341 16.2%

Unmatched Network Signature is at top 10 B & GA airports

Signature - the most relevant network in the FBO space

Relevancy

68% 38% 19% 9% 6% 5% 5% 1%

Signature Flight Support

Atlantic Jet Aviation Million Air Ross TAC Air Sheltair Cutter

Network relevance: FBO presence at top 200 US FBO locations by fuel burn

17+ years average remaining term

Typical FBO Minimum Standards

- Experienced operators

- Large initial investments

- Required offering of non-fuel services such as aircraft maintenance or charter

- Fuel farm infrastructure

- Commercial Fuelling

- Maintenance

- Other services

FBO network secured with long term agreements

Signature network grows to over 400 locations with EPIC…

Asset-lite network extension

205EPIC Locations

1. Network - 205 EPIC branded locations plus c.100 unbranded locations

2. Credit Card - Signature and EPIC fuel purchasing cards

• Options to expand

3. Military Defense Logistics Agency (DLA) -Extensive Experience

4. Procurement - Over 500 million gallons of combined buying power with Signature

• Allows us to move upstream

5. Technology - More than 1600 Self-fuelling stations – product differentiation with an alternative way to support 1600+

Self Service Pods

Delivering personalised customer experiences

Improved

Customer

Experience

Team members

- Delivered through highly trained service professionals

- New tools and flexibility to support the customer’s journey

Technology

- CRM database provides team with customer preferences

- Options for customers to do business with us the way they want

Facilities

- Speed - 96% of passengers spend less than an hour with us

- Efficiency - upgraded facilities and ramps to move quickly in and out of the FBO

Amenities

- High speed internet, business facilities, amenities and concierge services

Moving the business forward with investments in technology

Technology

solutions for

customers

Data empowered

decision making

Reduce

65K+reconciliations

1100 10110001101010

New Global FBO management system…

- Invested $10M in purpose built FBO point of sale and reporting system

- Simplified interface – significantly reduces employee training time

- Visibility to labour efficiency and productivity

- Enhanced data on customer behaviour and preferences

From 2,400 to

just over 100total products

Improve over

1Mtransactions

(annually)

Significant growth opportunities to leverage our assets

Focus areas – detail to followFocus Area

Flight

Credit card

Lavatory/ water

Catering

Cleaning

De-ice

Spare aircraft

Maintenance

Aircrew

Airline

Rental car

Real estate

Badging/ ramp access

Hangars

Co-branded club

Advertising

Offices

San Jose – attractive new hangar development

San Jose (SJC) – Third party funded

Capital intensive hangar development & funded by our customers; secures airport lease through 2063

- Satisfies ~$30m capital investment lease obligation

- Will generate incremental property management revenue & fuel sales margin

Real Estate

Teterboro – significant pipeline of hangar development

Teterboro (TEB) - Wetlands development

Only available development land left at TEB within Signature's leasehold

- Two parcels to develop

- Shopping the development now – high interest by Corporates and HNW individuals

- Requires handling and fuelling to be done by Signature

CommunityEngagement

Signature involved in the community local and national level

- Paramount to our customers- Everything we do has safety as our first priority

SAFETY

- World class people trained to deliver personalised customer experiences .

PEOPLE

- Delivering individualised customer experiences.

REAL ESTATE

- Speed and efficiency in everything we do for our customers- Technology enabled operations

OPERATIONAL EFFICIENCY

- Global portfolio of long term assets in the locations where customers want to fly

CUSTOMERS

Building a long term sustainable operating platform

www.bbaaviation.com

Shawn Hall

Signature CCO

- Market leadership

- Passenger loyalty

Organic Growth

Three focus areas will drive increased performance from core revenue

Core revenue streams

Formal network agreements• 50% of revenue under commercial agreement• Contracts anchored to loyalty and volume• Contract management

Pricing optimisation• Central pricing engine in place beginning of

Q4FY18 to automate manual processes• Allows for greater management of ~65% of

revenue base (incl. demand-based pricing)

Alignment with customer segments• Four behavioral segments identified• Commercial group aligning Marketing, Sales

and Revenue Management to segments

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Handling

Real estate

Deeper customer understanding enables more effective go to market

Prestige Commercial

Efficiency Value

FAA segments in SFS network1

Behavioral filter

o General characteristics

- Seeking luxury travel experience- Low utilisation

- Fly for revenue- High utilisation

- Focus on passenger time efficiency- High utilisation

- Price sensitive- Low utilisation

Behavioral segments in SFS network1

Part 91 (owner operator)Part 135 (charter)Fractional

Prestige

Commercial

Efficiency

1 SFS transaction data - % of US revenue

Customer size (annual gallons)

Customer loyalty

Base market attribute

Competitive region

Order size (3 tiers)

300K+potential pricing guidance combinations!

Product

Customer program

Network scale presents pricing challenge (and opportunity)

- Extract data using a BI Tool- Normalise Data

Data Preparation

- Split data into market segmentsSegmentation

- Estimate the market price in each segmentMarket Price

- Make price adjustment where advantageous.- Fix any broken pricing rules

Optimisation

- Predict the financial impact- Measure the results once prices are live in-market

Measure Impact

- Estimate Price/Volume relationship in each segmentPrice Sensitivity

Signature leveraging technology in pricing to capture incremental value

Scale and location create significant non-fuel revenue opportunities

- Market leadership

- Passenger loyalty

Organic Growth

Signature’s position at centre of B&GA transactions underpins growth

Trip/Flight planners

Operators

Spareaircraft

Catering

Maintenance providers

Tenants

Cleaning

HotelRental

Car Service

Non-fuel revenue opportunities

Focus areas – detail to followFocus Area

Flight

Credit card

Lavatory/ water

Catering

Cleaning

De-ice

Spare aircraft

Maintenance

Aircrew

Airline

Rental car

Real estate

Hangars

Co-branded club

Advertising

Offices

Opportunity with Signature / Epic credit card now in-house

Context and opportunity

Signature’s existing credit card supplied by Epic

Signature benefits

- Cost savings (transaction fee)

- Revenue generation

- Customer stickiness (incl. tie to Loyalty programme)

Customer benefits

- Simplified/streamlined billing for all flight needs (1 bill vs. 10-15 invoices)

- Single card across 463 combined SFS/Epic locations (49 states and 28 countries)

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Deeper penetration of branded fuel card worth $4-8M

- $1.5B in SFS revenue

- 25% penetration (current penetration in Epic network)

- Standard rates and fees

Opportunity assumptionsSplit of fuel revenue (present) Split of fuel revenue (future)

Direct Bill

Card A

Card B

Card C

Card D

Card E

Direct Bill

Cards A-E

…Incremental value possible with broader use Signature card

Source: SFS transaction data

Signature card Signature card

$4-8M underlying operating profit

opportunity

Pivoting network advertising worth $3-6M and indirect benefits

Key passenger stats

Avg. net worthAnnual passenger volume

Avg. annual discretionary income

$67M – 1.5B2 $728K – 11.8M3

Summary of benefits

- Increase from ~$1M operating profit today by focusing on passengers and national/spot contracts

- Elevated passenger experience level

- Stronger luxury brand affiliation

1 NBAA, SFS operations data; 2 Jet Traveler Report 2018; 3 Wealth-X 2015 UHNWI Luxury Spend

$3-6M underlying operating profit

opportunity

Opportunities exist to drive growth through new services and asset utilisation

- Market leadership

- Passenger loyalty

Organic Growth

Opportunity exists to monetise services provided to passengers

Flight

Credit card

Lavatory/ water

Catering

Cleaning

De-ice

Spare aircraft

Maintenance

Aircrew

Airline

Rental car

Real estate

Hangars

Co-branded club

Advertising

Offices

Passenger

Security

Concierge

Black car

Focus Area

Signature positioned to satisfy demand for differentiated airline experience

Growing wealthy population

Demand for differentiated airport

experience

Existing real estate and know how

Source: JD Power; Capgemini Financial Services Analysis, 2018

- Airport accessibility, check-in/baggage, and security check key airport rating factors

- Near 100% overlap with hubs of largest US airlines

- Existing experience in providing differentiated level of service

- Proven Elite concept (EMEA and Caribbean)

CAGR 2010-16

Growth 2016-17

$5-30m

Description

Ultra-HNWI

Mid-tier Millionaires

Millionaires next door

Elite provides private jet experience through airline during departure…

Greeting Light service

Security1

Airliner boarding

Private jet boarding

Departure

1 Security requirements vary across locations

Luxury shuttle

…and arrival

Private jet deplaning

Luxury shuttle

Border/Customs

Luggage

Airliner deplaning

Arrival

Beyond right real estate, key by-airport needs in place

Location A Location B Location C Location D Location E Location F Location G

Badged Employees ✓ ✓ ✓ ✓ ✓ ✓ ✓

24/7 Staffing ✓ ✓ ✓ ✓ ✓ ✓

Security Cameras ✓ ✓ ✓ ✓ ✓ ✓ ✓

Airside Access ✓ ✓ ✓ ✓ ✓ ✓ ✓

Private Lounge ✓ ✓ ✓ ✓ ✓ ✓

Conference Room ✓ ✓ ✓ ✓ ✓ ✓ ✓

Airport Approved Vehicles ✓ ✓ ✓ ✓ ✓ ✓ ✓

Customs & Immigration On Airport On Site On Site On Site On Site On Airport On Airport

Long Term Parking On Site Off Site On Site On Site Off Site Off Site Off Site

Elite worth $5-10M in underlying operating profit

50M/ year1

$500-$1.5K

0.10%3

5M/ year2

Passengers

1st Class Elite

1 Commercial airline traffic in average target airport 2 Assumed 10% First Class traffic 3 Assumed daily capture

5-10 FBOs

$5-10M OP opportunity

Signature focused on new ways to influence upstream decisions

OperatorsNetwork relevance

Influence upstream decisions

Tech enabled service delivery

PassengersBrand

awareness

Differen-tiated

experience

Influence upstream decisions

Loyalty based pricing

Hub of aviation needs

Ease of doing

business

Traditional focus area

New focus area

Detail to follow

All air travel needs

Incentivisedecision maker

Timing

Signature moving to influence upstream FBO decisions…

Method to book FBO Historical focus

Detail to follow

Advance Commercial agreement

Trip / Flightplanning

Charterbooking

Pre-takeoff / in-flight /post-landingReal-time

Passenger requests flight

Aircraft arrives at FBO

Flight secured

Sample flight timeline

…by exploring relationships with upstream enablers

Flight/Trip planned

Service providers notified

D-10 D0D-9 D-3 D-1

3rd Party trip planners

Operator dispatcher

Charter broker

Flight planning tools

Key enabler(s) to step

Options to move upstream

- Equity investment- Commercial agreement

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Organic Growth

Pricing optimisation

Credit card

Drop through >50% >50% >50%

Advertising

(1-2 yrs)

(2-4 yrs)

(2-5 yrs)

Underlying operating profit ($M) ~10 7-14 5-10

www.bbaaviation.com

Gareth Hall

Ontic President

Overview of Ontic presentation

What we do

Competitive advantage

Historical Performance

Future Growth

How does Ontic create and capture value?

Pedigree Availability Value

OEM design & quality

Obsolescence management

OEM regulatory approvals

Exceptional customer service

Supply chain specialist

Fleet knowledge demand forecasting

Long term product and service provision

Ensuring availability of high quality products and services to our customers creates significant value

OEMs trust Ontic to meet the needs of the long term customers

Value to OEM and to “Our Customer”

Meet the needs of ‘shared’ customers

Ensuring legacy aircraft remain flying

Prices reflect the value delivered

Value creation through supply chain execution - GTSU Safran Licence

Licence Summary:

- Product: Gas Turbine Starter Unit

- Platforms: AV8B

- Customers: US Marines

- Service Life: 2028

- Cold supply chain

Fleet readiness record levels and strong investment returns

Exceeding Expectations:

- Complex, low yield supply chain re-engaged

- Customer relationship established following expiry of incumbent support (Boeing HISS)

- Record parts availability achieved. Highest performing supplier on the AV8B programme

Balanced portfolio and business structured to deliver growth

$209M global business - Revenue mix

New Spares

New OE

Military

Commercial

Electronics/Avionics

Electro/Hydro-Mechanical

Engine Comp

Land Gear

24% 58%

13% 47%

Chatsworth, CA

Creedmoor, NC

Plainview, NY

Cheltenham, UK

Singapore

Scalable structure and strong product competency enabling growth potential

How do we expand the product portfolio?

Do the parts require to be replaced or repaired?

3 phase assessment lense:

Intellectual Property Platform Aftermarket Need

Trusted, long term partner with major aviation OEMs

Drawings

Complex, bespoke test equipment

Knowhow

Scale – number of active planes

Longevity – how long the aircraft fleet is expected to remain active

Why do OEMs choose to licence product lines?

Ontic recognised as a trusted, long term partner

- Focus on new aircraft platforms

- Products no longer core to strategic focus

- Decreasing volume with sporadic demand

- Products utilised on maturing or declining fleet

- Product support challenges

- Contract restrictions prevent desired returns

- Footprint / capacity challenges

160 Licences signed, key to success are Ontic’s strong OEM & customer relationships

OEM Partners Key Customers

Complex carve outs – GE Aviation Systems Fuel Measurement 2012

Acquisition summary:

- Deal completion: May 2011

- Total investment: $65M

- Platforms: B777, A320, Typhoon, Hawk

- Customers: Boeing, Airbus, BAE Systems, Airlines

- Markets: Civil OEM / Airline MRO / Military

Challenges and opportunities:

- Establishment of UK footprint

- Transfer 50 members of staff (TUPE)

- System level responsibility – 777 & A320

- High volume production and aftermarket spares/repairs

- Execution of fleet wide upgrade programmes

- Developed infrastructure to support licence growth

Trusted partner, strong continuing relationships

Creating trust and confidence through execution and delivery

Complex carve outs - GE Legacy Avionics 2017

Acquisition summary:

- Investment: $61.5M acquisition

- Investment: $4M capital

- Return: $9m Annual EBITDA

- Platforms: B737, Hawk, AW101, C130

- Customers: BAE, Boeing, Leonardo

- Markets: 74% Military / 26% Civil

Transition challenges:

- Transfer 83 members of staff (TUPE)

- Facility enhancements:

- Cleanroom

- Temp & humidity controlled workshop

- Specialist process areas

- Rare skills and demographic challenges

- High volume of technically complex parts

Our People – creating and driving value

Our people are:

- Proud to work at Ontic – Top quartile engagement

- Committed to a future career with Ontic

- Keen to develop and undertake new opportunities

- Thriving in an entrepreneurial culture

We invest in our communities

- Participation in youth employment programmes

- Employee led engagement programmes

- Promote STEM careers and careers in Aviation

Engaged global team delivering exceptional results

OEMTransition to Maturity

Non-Core & Legacy Products

Authorised Legacy Support

OEM Content

Unauthorised PMA

Consolidators

Distributers & 3 PL’s

50+YRS

Ontic is the market leader in its space

R&D GROWTH MATURITY SUNSET

Ontic Effect

Large and attractive opportunity space

In Service Fleets

In Service Aircraft – 156,000

Legacy & Sunset

Active Aircraft38,000

Global Aircraft MRO Spend

Component & Engine Spend

Legacy Opportunity Space

$9.6Baircraft >25Yrs

Rotorcraft

Military

Commercial

Huge opportunity for Ontic, significant room for growth

Intellectual property provides significant barriers to entry

Sole source revenueProprietary revenue

Sole source positions drive long term recurring revenue streams

Non-Prop

Non Sole Source

Sole Source

Current Year 2019 2020+ Total Order Book Value

2018.10 Order Book Known Volume

The portfolio provides high levels of future revenue visibility

Portfolio allows a significant forward order book to be maintained

Ontic firm orderbook + order run rate- Total backlog

- Firm orders $173M +

- Order run rate, ‘known volume’ $60M

- $130M of 2019 revenue booked

- Portfolio of 160 licences with 6000 products

- Incumbency value very high

- Long life platforms

- All licences have renewal options

- 100% success rate at licence renewals

Secure long term positions on platforms with significant future lifespan

Portfolio assures access to long term attractive and visible revenue streams

>10 yrs. with renewal options

$31.6M

<10 yrs. with renewal options

$45.4M

Owned or Perpetual

$132.0M

Licence Portfolio - 2017 $m Revenue

Disciplined investment approach key in executing profitable growth

Strong growth performance & future potential

- Aftermarket focus

- IP protected products

- Sole Source positions

- Long term revenue streams

- Large ‘legacy’ market

- Pipeline of opportunities

2008 2013 2017

Ontic Revenue & EBITDA Revenue EBITDA

Ontic Revenue & EBITDA

2008 2013 2017

Ontic Revenue & EBITDA Revenue EBITDA

Licence/Product Line opportunity funnel

EXPLORATORY

EVOLVING

ACTIVE NEGOTIATION

SIGNEDUTAS

Q4 2017

- Disciplined investment approach

- Deal gestation period often >1year

- Average of 1 in 5 opportunities converts

- Dedicated teams in place in US and UK

- Well positioned to deploy $35m/annum on value creative deals

32 deals closed since BBA acquisition of Ontic, average multiple 5-8x

HONEYWELLQ1 2018

FIRSTMARKQ4 2018 WOODWARD

Q3 2018ESTERLINEQ4 2017

Acquisition of Firstmark Corp – Platform for growth

Growth opportunities, strong market positions with stable recurring revenue

Transaction overview

- $27m annual revenue generating c $8.5m EBITDA

- IP protected aftermarket portfolio

- 2 US East Coast locations

Growth

- Growth through capture of legacy military IP

- Pricing potential through additional value creation for customers

- Capacity - capable and experienced management team

Barriers to entry

- Complex aftermarket parts – intellectual property held

- The key platforms served are considered ‘sweet spot’ (F15, F16, F18, KC135, C130)

Execute on opportunity space and deliver

Market Intelligence Growth Optimisation

- Platform

- Pricing

- Geographic penetration

- Expanded platform focus

- Deepening OE relationships

- Sourcing

- Footprint

- Continuous improvement

Double EBITDA from 2016 by 2021 – Management executing to plan

Strategy execution delivering growth to $100m of EBITDA

- Channels

- Products

Data Analytics that drive our decision making

- Ensure continued pipeline to deploy capital

- Provides visibility into platform/ market opportunities and risk

- $35M of annual investment

- Targeted M&A e.g. Firstmark

- Drive value from existing portfolio

3 PILLARS OF STRATEGY

Summary

- Licence or acquire IP

- Legacy aftermarket space

- Ensure availability of parts and service

- Sole source positions

- OEM relationships

- Integration capability

- Supply chain proficiency

- 32 licence & M&A deals signed

- Revenue growth from $46M to $209M

- EBITDA margins of 30%+

- Active and extensive pipeline of opportunities

- Platform & Market analysis tools

- Scalable organisation ready to execute on future growth

What we do

Historical performance

Future growth

Market leading position, strong value creation and significant future opportunity

www.bbaaviation.com

David Crook

Group FD

Operating model built on strong foundations

2012 2013 2014 2015 2016 2017 2018

Foundation

US FBO long leases

Sole source revenueProprietary revenue

Non-Prop

$2M 1%

$207M 99%

Non Sole Source

$26M 13%

Sole Source

$183M 87%

Flexible operating model

2018 guidance

FBO/Hangar dvpmt

FBO Maintenance

Flexibility

Capital Expenditure Flexible Cost Base

Flexibility

Fixed costs - Leases & other

Variable costs - Fuel & labour

Debt Maturity Profile

Debt facilities that support growth and long-term nature of core assets

- Leverage range set at 2.5-3.0x on a covenant basis (2.6x at June 2018)

- $650m unsecured RCF refinanced in H1 2018, expiry March 2023

- In April 2018 issued our inaugural $500m senior unsecured notes due 2026 at 5.375%

- Proceeds used to repay Facility B acquisition debt and maturing US PP notes

- Facility C acquisition debt of $450m to be refinanced by 2019 (matures 2020)

- Weighted average cost of debt c.5%

2018 2019 2020 2021 2022 2023 2024 2025 2026

RCF Usage Term Debt Usage Bond USPP RCF Headroom

Headroom of $618 m as at 30 June 2018

Ontic licences

M&A opportunities

Disciplined capital allocation framework – Executing to plan

Growth

and Value

Creation

Process Improvement

Improved Customer

Experience

Data Empowered

Decision Making

FCF of $250-300m

$30-35m

$100-150m

c.$140m

1100 101100011010

Disciplined capital appraisal based on ROIC

Screening $m Rationale 12% ROIC threshold

St Thomas FBO(49% share completed)

9Arrivals/departures on the field. Length of unexpired lease term. No of FBOs on the field. Network relevance

EPIC(Completed)

88Franchise network. Card programme. Broader data capture. Access to direct fuel procurement

Ontic licences(Completed)

22 High IP content. Sole source rights. Fleet size and identifiable aftermarket

Firstmark(Completion late in 2018)

97High IP content. Sole source rights. Fleet size and life cycle. IP development opportunities. Expandable footprint

ROIC calculated by dividing underlying operating profit by net assets, at the average exchange rate for the last 13 months’ spot rate. The net assets for ROIC are calculated by averaging the net assets over the last 13 months.

Organic Growth

Pricing optimisation

Credit card

Drop through >50% >50% >50%

Advertising

(1-2 yrs)

(2-4 yrs)

(2-5 yrs)

Underlying operating profit ($M) ~10 7-14 5-10

Leveraging the Signature network for outperformance

Summary

- Strong and flexible operating model representing significant barriers to entry

- Multiple organic and inorganic growth opportunities support Free Cash Flow generation

- Balance sheet in place to support strategy for growth

- Disciplined capital appraisal policy

- Shareholder returns in alignment with our transparent capital allocation policy.

www.bbaaviation.com

Mark Johnstone

Group CEO

- Market leadership

- Passenger loyalty

Organic Growth

Building to a $100m EBITDA by the end of 2021

- Licence or acquire IP

- Legacy aftermarket space

- Ensure availability of parts and service

- Sole source positions

- OEM relationships

- Integration capability

- Supply chain proficiency

- 32 licence & M&A deals signed

- Revenue growth from $46M to $209M

- EBITDA margins of 30%+

- Active and extensive pipeline of opportunities

- Platform & market analysis tools

- Scalable organisation ready to execute on future growth

What we do

Historical Performance

Future Growth

BBA Aviation – primed for growth

1. Simplified portfolio

2. Capital discipline => pre-tax ROIC >12%

3. Enhanced leadership with active management

4. Expand platform positions through connections to customers

5. Further opportunities for value creation from our infrastructure

6. Signature flight path to deliver 250bps mid term through cycle outperformance

7. Ontic grows to a $100m EBITDA business by end 2021.

Ontic licences

M&A opportunities

Driving shareholder value – Enabling Flight and Expanding Horizons

Growth

and Value

Creation

Process Improvement

Improved Customer

Experience

Data Empowered

Decision Making

FCF of $250-300m

$30-35m

$100-150m

c.$140m

1100 101100011010

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