This document analyzes the financial performance of Abu Dhabi Aviation, a helicopter and aircraft operator in Abu Dhabi. It summarizes that the company has over 1,000 employees and $1.3 billion in assets, operating 62 aircraft and 7 fixed-wing aircraft. While it has stable stock prices and pays regular dividends, its return on equity has deteriorated in recent years, possibly due to aggressive debt reduction, high dividend payouts, and lenient credit policies. However, it has reduced leverage and grown through acquisitions rather than organic revenue growth. Overall, the company could be a long-term investment if an investor is willing to hold the shares for the long run.

1. Abu Dhabi Aviation
Fundamental Analysis

2. Company Overview
• Fixed-wing aircraft and helicopter operator serving large oil & gas
companies in the GCC
• Established in 1976 by Amiri Decree and is based in Abu Dhabi
• First listed in Abu Dhabi Exchange (ADX) on 15th December 2000
• 1000 employees , $1.3 billion in assets: Owns, leases and operates 62
aircrafts (mostly helicopters) and 7 fixed-wing aircraft
• Owned 30 percent by the government and 70 percent by UAE
nationals

3. Trend
Analysis-
Liquidity
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
2015 2016 2017 2018 2019
Ratio
Years
Liquidity Trends
Current Ratio Industry-Current Ratio
Quick Ratio Industry- Quick Ratio

4. Ageing Schedule
156 115 88 163 253
219
146 190 136
215
99
120 39 121
81
189
228
183
172
166
2,182
1,805
1,607
1,807
2,019
-
500
1,000
1,500
2,000
2,500
2015 2016 2017 2018 2019
'000
AED
AGEING SCHEDULE BREAKDOWN VS SALES
Not past due Due for 31-90 days
Due for 91-180 days Due for more than 180 days
Sales
24%
19% 18%
27%
35%
33%
24%
38%
23%
30%
15%
20%
8% 20%
11%
29%
37% 37%
29%
23%
2015 2016 2017 2018 2019
100% STACKED AGEING SCHEDULE
Not past due Due for 31-90 days
Due for 91-180 days Due for more than 180 days

5. Trend
Analysis-
Liquidity
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
2015 2016 2017 2018 2019
Ratio
Years
Revised Liquidity Trends
Revised Current Ratio Industry-Current Ratio
Revised Quick Ratio Industry- Quick Ratio

6. Asset Management
-
1.00
2.00
3.00
4.00
5.00
6.00
2015 2016 2017 2018 2019
Ratio
Year
Asset Management Ratios
Receivables Turnover Industry- Receivables Turnover Inventory Turnover
Industry - Inventory Turnover Total Asset Turnover Industry- Total Asset Turnover
Fixed-Asset Turnover Ratio

7. Financial Leverage
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2015 2016 2017 2018 2019
%
Years
Debt Ratios
Total Debt-to-Equity Ratio
Industry- Total Debt to Equity
Debt Ratio
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2015 2016 2017 2018 2019
Multiples
Years
Times Interest Earned Ratio

8. Profitability
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2015 2016 2017 2018 2019
%
Years
Profit Margin Ratios
Gross Profit Margin Ratio Net Profit Margin Ratio
Industry- Gross profit margin Industry- Net profit margin

9. Profitability
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2015 2016 2017 2018 2019
Equity
Multiplier
%
Return
Percentage Return

10. DuPont
Method
ROA / ROI = Net Profit margin x
Total Asset Turnover
ROE = ROA x Equity Multiplier
Equity Multiplier = Total
Assets/ Total Equity

11. Why is the
Equity
Multiplier
Deteriorating?
y = 62612x + 5E+06
y = 201388x + 2E+06
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2015 2016 2017 2018 2019
AED
Total Equity Total Debt
Total Assets Total Equity
Linear (Total Assets) Linear (Total Equity)

12. Market-Based Ratios
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
6
6.5
7
7.5
8
Dec-14 May-16 Sep-17 Feb-19
AED/Share
Market Price vs Book Value Per Share
Price BV/Share EPS
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2015 2016 2017 2018 2019
Ratio
Year
Price-to-Earnings and Price-to-Book Ratios
Price-to-Earnings (P/E) Ratio
Industry- P/E Ratio
Market Price-to-Book Value Ratio
Industry- Price to Book

13. Dividend
Policy
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2015 2016 2017 2018 2019
AED
%
Dividend Policy Ratios
Payout Ratio Dividend Yield (%) Industry- Payout Ratio
Industry- Dividend Yield Dividends Distributed

14. Summary: Negative
Observations
• Mature firm, unlikely to have
accelerated growth in the future
• Stable stock prices; undervalued
in the secondary market
• Constant EPS? Deteriorating ROE?
• Management is using three cash-
depleting strategies:
• Aggressively reducing leverage
• Paying unusually high dividends
• Lenient credit policy

15. Summary: Positive Observations
• Reduced leverage to meet standard in
2019, reducing risk for shareholders and
increasing BV/share
• Growth strategy is through acquisitions,
not through revenue generation
• Portfolio of companies in diversified
industries and different countries
• Pays constant, regular dividends
• In conclusion: Invest in ADA if you are
willing to hold the shares for the long
run

16. Thank You! Q&A