ALAFCO Aviation Lease and Finance Company (K.S.C.P.) The 9th Forum for Listed Companies and Analysts 2017 ALAFCO Aviation Lease and Finance Company (K.S.C.P.) April 2017

Main Topics ALAFCO’s Current Position Outlook for the Aircraft Leasing Industry ALAFCO’s Strategy & Growth Plans

ALAFCO’s Shareholders ALAFCO is jointly owned by strong corporations.

ALAFCO Aircraft Portfolio ALAFCO’s leased aircraft consists of 60 popular Airbus and Boeing aircraft. 34 22 Airbus A320 family Boeing 737 2 2 Airbus A321 Boeing 777 ALAFCO’s fleet size is the 30th largest in the aircraft leasing industry.

ALAFCO’s Customer Base ALAFCO currently has 20 airline customers in 13 countries.

ALAFCO - Global Presence ALAFCO operates on a global scale, with a diverse customer base. Europe Asia Middle East Africa America

ALAFCO Financial Performance Consistently profitable since inception. Dividends declared every year since listing.  

Financial Snapshot – 1Q2017 Latest Financial Figures: (KD mn) 1Q 2016 1Q2017 % YOY Net Profit 3.0 5.2 ↑ 72% Revenue 14.9 19.0 ↑ 28% In FY 2016, ALAFCO added 14 aircraft to its portfolio, serving future growth in revenues.

Benchmarking ALAFCO ALAFCO continues to deliver above-average profit margins. ALAFCO’s return on equity in 2016 was equivalent to the average seen in the aircraft leasing industry. Note: FY 2016 figures. The charts use lessors whose financials are available in the public domain.

ALAFCO Stock Performance ALAFCO stock value has increased 23% since the start of 2016.

Company Strengths SHAREHOLDERS OPERATIONAL FINANCIAL MANAGEMENT TEAM Jointly owned by strong corporation. OPERATIONAL Strong portfolio of leased aircraft. Large order-book. Establishment of operating subsidiary in Ireland. FINANCIAL Robust financial position. Consistently profitable. MANAGEMENT TEAM In-house team of highly-experienced professionals with extensive industry relationships.

Near-term Industry Outlook Aircraft continue to attract investors looking for attractive, steady returns compared to other assets. Air traffic growth is expected to moderate only slightly in 2017 - though will remain broadly in line with the average pace seen over the past decade. Though momentum in profitability cycle is expected to ease, industry-wide financial performance will remain extremely strong by historical standards.

Oil Prices & Interest Rates Oil prices expected to rise further this year and next. ALAFCO has invested in 117 new-technology aircraft with maximum fuel-efficiency. Interest rates are expected to increase further, likely to impact short-term borrowing costs. ALAFCO has a natural hedge in place between lease agreements and finance agreements.

Long-term Outlook: Air Traffic Strong and resilient passenger traffic growth: Air traffic will double in the next 15 years. Traffic will grow at an average of 5% annually. Traffic has constantly outpaced growth in GDP. Emerging markets to lead growth in world passenger traffic. Air Travel X2 2016-2030

Aircraft X2 Long-term Outlook: Aircraft Demand Huge demand for new aircraft: 20-year world demand for almost 40,000 new aircraft valued at around $6.0 trillion. World fleet will double in next 20 years (from around 22,500 currently to more than 45,000 aircraft by 2035). 40% of new aircraft demand needed for replacement, and 60% for growth. Aircraft X2 2016-2035

ALAFCO Expansion Plans ALAFCO aims to expand its portfolio to 100 aircraft by 2020. To receive 117 new aircraft from Airbus & Boeing in the next 5 years. 10th largest order-book in the industry.

ALAFCO Growth Strategy Invest in liquid, widely-operated aircraft; easily transferable at the end of a lease. Invest in young aircraft early in life cycle. Invest in new-technology aircraft that offer most technology- advanced aircraft, providing unprecedented fuel-savings, operating reliability and enhanced passenger experience. Lease to credit-worthy airlines.

ALAFCO Financing plans ALAFCO has diversified & cost-effective financing in place to support its expansion plans: Commercial financing Revolving Credit Lines European Export Credit Agencies US Export-Import Bank Debt capital markets (sukuk)

ALAFCO Future Roadmap Through its core competencies and competitive advantage, ALAFCO is well-positioned to achieve its ambitious expansion plans, that will enable the company to position itself as a global player and market leader in the aircraft leasing industry, and to continue to fulfill its shareholders’ expectations.