Airfinance Journal Asia Pacific School 2019

20 years on the roadAirfinance Week Hong Kong 2019Airfinance JournalAsia Pacific School 201928-30 October 201920th AnniversaryAirfinance Journal Asia Pacific 201930-31 October 2019Conrad Hong KongThe longstanding Airfinance Journal Asia Pacific School 2019 is a three-day aviation finance trainingdesigned for professionals who have joined the industry recently or wish to refresh their marketknowledge. This year, Airfinance Journal proudly collaborates with BNP Paribas to host the second dayof Asia Pacific School and tailor an interactive case study session for participants to put their knowledgeinto practice. During the three-day programme, about 22 senior industry professionals will share valuablemarket updates and equip participants with practical knowledge across spectrums of aviation financeand leasing.What you'll learn: Fundamentals of the aircraft leasing industry Risk management for lessors Cape Town Convention – one of the key international treaties affecting aviation How do lessors choose a tax efficient jurisdiction for aircraft leasing Aircraft lease securitisaitonWhat our attendees said about Airfinance Journal School:“Great event, sophisticated sessions and productive case study.” Industrial Bank Financial Leasing“Very informative and a good opportunity for people in the industry to communicate.” Haitong UTInternational Leasing“Excellent course! Suitable for people who are new to this industry.” CMIG Aviation Capital“First-hand and useful information. Seasoned presenters.” Cathay United BankCourse inance Journal

Airfinance JournalAsia Pacific School 201928-30 October 2019, Conrad Hong KongContent you can rely onSome of the key speakersPierre BriensManaging Director, Head of Aviation,Transportation Sector, Investment BankingAsia PacificBNP ParibasVincent LamSVP Asia Pacific – Aircraft RemarketingAir PartnerAndy LaiManaging Director, Head of Origination &Structuring, Asset Finance & Securitisation,Asia PacificBNP ParibasNikolai LvovDirector, Global Aviation – Asia PacificCitiSimon NgLewis SutherlandExecutive Director, Global Markets, AsiaPacificBNP ParibasSenior Vice President, Aviation InvestmentManagementDVB Bank SENorio BesshiDirector, Optimization, Structured Leasing &TransportationBNP ParibasVivien GuoJohn TimpanyPartnerKPMGVice President, Transportation Sector,Investment Banking Asia PacificBNP ParibasPaul NgEugene PhuaDavid TokophDirector, Legal CounselBNP ParibasPresident and CEOMorten Beyer & AgnewAlexis Postel-VinayHead of Loan & Structured Credit Syndicate,Asia PacificBNP ParibasPartnerMilbankPeter HuijbersDirectorPH Aviation AsiaSylvain MagneManaging Director, Head of Advisoryand Capital Markets, Transportation &Infrastructure Sector, Investment BankingAsia PacificBNP Paribasbit.ly/AFJHKSchool#AFJHKSCHOOL

Course LeaderSchool Day One Monday, October 28th0800Registration0900Welcoming Remarks by Airfinance Journal0910Fundamentals of the aircraft leasing industry Background of aircraft leasingIndustry fundamentals and key driversThe aircraft leasing competitive landscapeBusiness cycle of the industryStrategic implications of the current market conditionsWays for lessors to prepare for economic downturnBradley Dailey, Director, Alton Aviation Consultancy1000Operating platforms for lessors Deal process, controls and approvalsTechnical specificationsLease managementNegotiating a lease transactionIT systems and fleet managementPeter Huijbers, Director, PH Aviation Asia1040Networking break1110Risk management for lessors Risk management frameworkAsset risk and liability riskAirline credit risk and evaluationBalance between risk & returnJurisdictional risk and repossession considerationsPeter Huijbers, Director, PH Aviation Asia

School Day One Monday, October 28th (Cont’d)1150Technical asset management of a fleet MRO – what is good maintenance planning and what is not?How to manage a diversified pool of maintenance reserves and costsConflicting interest with airlines, lessors and MROs in maintenance reservemanagementPortability and assignability of maintenance reservesThe importance of technical records for engineeringDavid Tokoph, President and CEO, Morten Beyer & Agnew1230Networking lunch1345How do lessors finance their fleets? Why there is a constant source of funding for global lessorsHow to diversify funding costsLessors’ credit vs. aircraft credit – which one is more important to lenders whenassessing risksHow to utilise your capital structure to minimise funding costsCharles Jin Chuan Zhou, Executive Director, Standard Chartered Bank1425Fundamentals of aircraft valuations Supply and demand for aircraftMethodologies for valuationsFactors affecting aircraft valuesInterpretation of market informationSecondary marketsThomas Kaplan, Senior Valuations Analyst, Ascend1505Networking break1535How do lessors choose a tax efficient jurisdiction for aircraft leasing Evolving tax regimes of tax efficient jurisdictionsKey considerations for choosing a tax efficient jurisdiction for registrationWhat is a good tax treatyTypical structures of the transactionsJohn Timpany, Partner, KPMG

School Day One Monday, October 28th (Cont’d)1620Currency risk in aircraft leasing Why and how do foreign exchange rates impact airlines and lessors?What is the role of foreign exchange rates in shaping passenger demand? Whatare the demand characteristics?What are the possible scenarios when there are mismatches in operatingfinances?How to hedge away currency risk in aircraft leasing?Nikolai Lvov, Director, Global Aviation – Asia Pacific, Citi1705Close of day one

School Day Two Tuesday, October 29th0830Registration0900Introduction of course by course leader Welcoming noteThe airline industry todayKey drivers of air transportPierre Briens, Managing Director, Head of Aviation, Transportation Sector,Investment Banking Asia Pacific, BNP Paribas0930Managing the risks in aircraft financing Credit risk: Assessing the solvability of an airline to meet its LT debt and leaseobligationsAsset risk: Understanding liquidity, life cycles and market values of aircraft andenginesStructural risks: Getting LTV, security package and structural cash flows rightRepossession & remarketing risk: Legal & practical considerationsPierre Briens, Managing Director, Head of Aviation, Transportation Sector,Investment Banking Asia Pacific, BNP Paribas1010A focus on commercial debt: The core option for most airlines & lessors Financing menu for airlines and lessorsSecured vs unsecured debtFinancing airlines vs lessorsSingle aircraft vs portfoliosManaging contingent currency and interest rate riskPDP financingVivien Guo, Vice President, Transportation Sector, Investment Banking Asia Pacific,BNP Paribas1050Networking break1110Debt capital markets Transaction, private vs public placementsSenior unsecured and secured notesABS and EETCsECA guaranteed bondsAndy Lai, Managing Director, Head of Origination & Structuring, Asset Finance &Securitisation, Asia Pacific, BNP Paribas

School Day Two Tuesday, October 29th (Cont’d)1140Derivatives for the aviation industry Interest rate risk: Fixed vs floatingFuel price volatilityCurrency riskSimon Ng, Executive Director, Global Markets, Asia-Pacific, BNP Paribas1210Japanese operating lease with call option JOLCO fundamentalsKey considerationsNK vs TK investorsFactors affecting the effectiveness of JOLCOFuture potential of JOLCONorio Besshi, Director, Optimization, Structured Leasing & Transportation, BNPParibas1240Networking lunch1350Getting your mandate and term sheet right without outside counsel Mandate letter - why sign one?Mandate letter - what's important?Key structural issues to cover at term sheet stageEugene Phua, Director, Legal Counsel, BNP Paribas1430Distribution of aviation assets to the bank and fixed income markets Reason for distributing aviation assetsFinding liquidity and matching it with the appropriate risk profileRecent dynamics on the loan marketLaurent Luquet, Head of Real Assets, Loans & Market Financing Syndicate, BNPParibas1500M&A and IPOs in the aviation sector Types of M&A dealsCommon tension points between buyers and sellersWhy do airlines IPOsTypical valuation methodsArnaud Bouchet, Vice President, Advisory & Capital Markets, Transportation &Infrastructure Sector, Investment Banking Asia Pacifics, BNP Paribas1530Networking break

School Day Two Tuesday, October 29th (Cont’d)1550Case Study: Bidding on an airline’s RFPThis is an interactive case study inspired by real cases. Guided by the speakers, theaudience will be split into groups to make a bid and win an airline RFP.The objective of the Case Study is to put the participants in an Aviation Banker’sshoes during the entire RFP process with an airline. In order to win the mandate,each team will have to juggle with the requirements imposed by airline on thetransaction structure, their internal constrains and the competition.Pierre Briens, Managing Director, Head of Aviation, Transportation Sector,Investment Banking Asia Pacific, BNP ParibasVivien Guo, Vice President, Transportation Sector, Investment Banking Asia Pacific,BNP Paribas1720Course summary and close of day two

School Day Three Wednesday, October 30th0830Registration0900Welcoming Remarks by Airfinance Journal0905Fleet selection and financing considerations for airlines Evolving airline business modelsHow do airlines’ business models affect the selection of aircraft?Key considerations for leasing vs buyingGaining competitiveness through mergers and acquisitionsMarc Tembleque Vilalta, VP Airline Analysis, Avolon0950Dispute resolution What is a dispute?Documenting dispute resolution proceduresChoice of governing lawEnforcing securitiesRecent case studyJohn Frangos, Partner and Deputy Director, Dispute Resolution, Tilleke & Gibbins1030Networking break1100Fly high with commercial aircraft manufacturers What type of products do manufacturers support and how?Services and digitalisation trendsOverall industry implications of OEM aftermarket developmentsMarc Tembleque Vilalta, VP Airline Analysis, Avolon1145Cape Town Convention – one of the key international treaties affectingaviation What is Cape Town ConventionCape Town Convention’ advantages to aircraft financiers, lessors and airlinesInsolvencies and default remediesHow has it evolved over the last decade?Paul Ng, Partner, Milbank1230Networking lunch

School Day Three Wednesday, October 30th (Cont’d)1345Aircraft lease securitisation What is securitisation?How to structure an aircraft lease securitisation?How does asset composition affect securitisation transaction execution?What are the legal concerns when we structure securitisation transactions?How would risk retention rules facilitate the transactions?Lewis Sutherland, Senior Vice President, Aviation Investment Management, DVBBank SE1430Remarketing of aircraft Asset management strategies for airlines and lessorsRemarket procedures, documentation and recordsNegotiation managementSingle vs portfolio asset remarketingRemarketing challenges in 2020Vincent Lam, SVP Asia Pacific – Aircraft Remarketing, Air Partner1515Networking break1545Rating methodologies for airlines and lessors Rating process and frameworkLessors and airlines rating methodologyRating EETCsRating Aircraft ABSKey credit forecast for 2020Sean Hung, Vice President / Senior Analyst, Moody’s1630Understanding the engine as an asset class The engine leasing marketThe business modelThe importance of engine maintenanceResidual values and exit strategiesThe engine OEMs in the aftermarketMathieu Gouache, LEAP Product Marketing Director, CFM1715Close of school