Bohai Capital Holding Co.

, Ltd
(渤海金控投资股份有限公司)
Shareholding structure
HNA Group Co., Ltd. Zhuhai Dong Fang Jia Ze Investment
Management Center Limited Partnership
88.05% 11.95%

Shareholders acting in concert Guangzhou City Construction

HNA Capital Holding Co., Ltd Others
with HNA Capital Investment Co., LTD.
17.79% 34.56% 4.26% 43.39%

Bohai Capital Holding Co., Ltd

100%

Tianjin Bohai

53.65% 64% 55%

Tianjin Aviation
Wanjiang Hengqin
Financial Services
Financial International
Onshore 100% Co., Ltd.
Offshore
Hong Kong Bohai Leasing assets
Management Co., Ltd

100% 100%
5.29%
Global Sea Global Aviation Leasing
Containers Ltd. Co., Ltd

100% 80% 37% 63%

Seaco SRL Cronos Ltd Avolon Holdings Ltd

84.7% 100% 100%

HKAC Avolon Aerospace C2 Aviation

 History and key milestones
 Tianjin Bohai established as a  Purchased of 80%
domestic pilot leasing company of Cronos on
 Transaction has been closed
in 2007  Acquired HKAC in 2012 Jan 20th, 2015
in April 2017
 Completed 100%
 Established Hengqin acquisition of Avolon on
International as a 51%- Jan 8th, 2016
owned foreign-invested  Changed name to Bohai
 Established Wanjiang leasing company in Capital Holding Co., Ltd
Financial Leasing Co., Oct 2013  Actively expand into
 Purchased of 100% of diversified financial business
Ltd. (“Wanjiang
Seaco SRL
Financial”)

Operation
2007 2011 2012 2013 2014 2015 2016
Capital Markets

 Completed the change in business  3+2-year RMB 3.5bn

registration, and became China’s FIRST domestic corporate  Company successfully completed
listed leasing company bonds issued in 2013 RMB 7bn domestic super short-term
commercial paper registered in 2016
 Wanjiang Financial Leasing
 Completed RMB 3.5bn
completed RMB 3bn financial bond
equity private placement
registered in 2016
of A shares in 2014

 Increased its shareholding in Hengqin International to 57% In Feb 2015

 Wanjiang Financial Leasing listed on NEEAQ in Nov 2015
 Completed RMB16bn equity private placement of A shares in 2015

Sources: Company information

Note:1 Subject to regulatory approvals
Business Overview

Key Credit Highlights

Financial Performance

Contents
Bohai Capital – A leading global diversified leasing company
Aircraft Leasing Container Leasing Financial Leasing Other financial services

Key subsidiaries 3

% of total
50% 27% 23%
leasing revenue1

#3 #2
Market position2 N/A N/A
Worldwide Worldwide

Headquarters Dublin Singapore Beijing / Tianjin China

/ Anhui
Infrastructure
849 logistics companies
Customer base 149 airlines in Real estate
across the globe
62 countries Equipment

Key product Operating lease Operating lease Financial lease Other

Sources: Company filings, company information as of Dec 31, 2016

Note: 1 Note: 1 Total leasing revenue denotes the leasing revenue here includes all the leasing revenue under Operating lease and Financial lease;
2 Aircraft leasing ranking by fleet CMV as of De 2016 based on Ascend database; container leasing ranking as of Dec 2016 based on latest Drewry om aircraft, container, infrastructure, real estate and equipment

leasing; report; 3 Acquisition of stake in Sinosafe Insurance is pending approval

 Bohai Capital – A leading global diversified leasing company (Cont’d)
#1 largest listed leasing company in Greater China #2 largest amongst globally listed lessors1

Top 5 by net assets (US$bn) Top 5 by net assets (US$bn)

4.7 Net assets,

AerCap, 8.4

3.7 4.7

3.3 3.3

3.3 3.3

Net assets,
3.3
CSCL, 2.0

Sources: Company filings, as of Sep 30, 2016, exchange rate as of Sep 25, 2016, USD/CNY=6.67, USD/HKD=7.76, USD/JPY=100.96
Note: 1 Pure leasing companies excluding banks
Aircraft leasing – Avolon + HKAC+C2—Leading global aircraft lessor with a young and diversified customer base
Leading global market position Young fleet2
Current market value of fleet1 (US$bn)

30.2
27.7 The combinded business had an owned fleet of 551
aircraft at 31 December 2016 with an average aircraft age
of 4.7 years: the yongest fleet of the word top 3 aircraft
Series 1, Bohai,
9.7
leasing companies.
11.5 14.9 The total orders and commitments for 301 aircraft include
282 new technology aircraft compromising : 196 Airbus
aircraft( A320 neo family, A330 neo and A350); 61 Beoing
737 MAX aircraft and 25 Beoing 787 aircraft.

Geographically diversified customer base2

China Other regions in Asia North America Middle East and
North America, Africa, 6.0%
7.8%

149customers Latin America,

14.7%
in
APAC, 49.8%
62countries
Europe Latin America Middle East

Europe, 21.6%

Committed fleet portfolio by region (NBV)

Globally diversified long-term contracted cash flows - 149 customers

Source: Ascend, company information
Note: ¹Based on Ascend database as of Sep 2016; total asset of CIT’s portfolio acquired of US$11.1bn used as a proxy; 2 As of Dec 31, 2016,the fleet of C2 is not included.
Container leasing – Seaco + Cronos—1 container lessor with a globally diversified customer base
Largest global container lessor by fleet size (CEU)1 Strong cash flow supported by long-term contracts2
% of long-term lease
Fleet size
Ranking Company name 78.0% data, Textainer,
(mm CEUs)
76.3%
1 6.4 data, TAL, 68.7%
data, CAI, 66.0%
2 4.0
3 3.6
4 2.1
+
5 1.9

Global footprint Diversified global customer base

 20sales and support offices

 123 port locations in 49 countries

 420 third-party depots

844 customers across the globe

Inherited GE management best practices Diversified product portfolio
Tank
 Seaco was owned and managed by GE Special
15%
between 2007 and 2011 (50% owned) 5%
Dry  Average age3: 4.75 years
47%
 The main management team has an  Average utilization rate4: 92.3%
average industry experience of over 22
Refrigerated
years 33%
Container fleet by category as of Jun 2016 (NBV)
Source: Company information, Drewry
Note: ¹Fleet data as of Dec 31, 2015 based on latest Drewry report; TAL and Triton completed merger in Jul 2016; Florens and Dong Fang completed merger in May 2016 (Florens fleet size not include Dong Fang; fleet
size of Dong Fang is 0.9mm CEU as of Dec 31, 2015); CEU = Cost equivalent unit (unit of measurement where containers are indexed relative to the approximate cost of a twenty foot container); 2 Long-term lease
contract by CEU excluding financial lease as percentage of total lease contract by CEU ; as of Dec 31, 2015; 3 Owned fleet; 4 As of Sep 30, 2016
 Domestic leasing
Domestic leasing revenue1
 Comprises all three categories of regulatory licenses
Sales
applicable to PRC financial leasing companies: Sales
Containers
Others
Real estate 5.5%
 Tianjin Bohai – The largest Normal Financial Leasing （融 0.1%
5.1% 6%
资租赁） License holder in the PRC by registered capital 0%
Sales Sales
 Wanjiang Financial – One of 52 Special Financial Leasing Equipment Aircraft
（金融租赁）License holders and the 18th largest of its 9.1% 38.4%
type in the PRC by registered capital 9% 38%

 Hengqin International – Foreign Financial Leasing

License holder

Sales
Infrastructure
 Primarily focused on leasing in five industry sectors: 39.3%
aircraft, containers, equipment, infrastructure and real 39%
estate Total revenue (2016): RMB 6.38bn

 Growth has been primarily driven by:

 Awards include “Top 100 Listed Companies with Capital
 Infrastructure leasing – RMB 2.51bn in year 2016
Brand Premium” by China Centre for Market Value
Management between 2014 and 2016  Aircraft leasing – RMB 2.45bn in year 2016

 Equipment leasing – RMB 0.58bn in year 2016

Source: Company information, China Leasing Alliance

Note: 1 Domestic leasing revenue includes revenues earned by Avolon, Cronos, Seaco and HKAC from customers in China
Investment in other financial services

Banking & Insurance Securities broking

 Mainly engaged in life insurance services  Securities brokerage

 Total assets: RMB 29.5bn2  Total assets: RMB 30.3bn2
 % stake: 20.0%1  % stake: 3.57%1

Internet finance

 Provides a comprehensive suite of insurance

services  Internet investment and finance platform
 % stake: 14.77%3  % stake: 9.5%1

 City commercial lender based in Tianjin  China’s leading Internet financial services
 Total assets: RMB 657.3bn1 provider
 % stake: 1.77%1  % stake: 5.63%1

Source: Company information, company filings

Note: 1 As of Dec 31 2016; 2 As of Dec 31 2016; 3 Acquisition of the stake in Sinolife Insurance is CSRC pending approval
Business Overview

Key Credit Highlights

Financial Performance

Contents
Key credit highlights

1
■ Leading global leasing company
Scale ■ Largest publicly listed leasing company in Greater China

2 ■ Highly diversified across industry, country and customer base

Diversification ■ Diversification across asset classes and geographies with different cycles and dynamics
reduces business risk
3
Market positions ■ World leading market positions in aircraft and container leasing

4
Funding ■ Diversified financing channels – equity and debt capital markets, onshore and offshore

5
Parentage ■ Strong support from HNA Group

6
Management ■ World-class management teams in China and overseas

7
Risk controls ■ Stringent risk management with strong profitability and solid credit ratios
 1 A leading global leasing company
Company Total assets (US$bn) Net assets (US$bn)

32.5 4.7

系列1,
Aircraft leasing

41.6 Aercap,
8.4
13.44 3.4

13.98 3.4

1
系列1,
Container

Triton
leasing

8.7
Inernational
系列1, , 1.8
4.3 Textainer,
1.2
Railcar and truck

系列1, 系列1,
leasing

Ryder, 11.1 Ryder, 2.0

系列1, 系列1,
GATX, 7.1 GATX, 1.3

Source: Company filings as of Sep 30, 2016, exchange rate as of Sep 25, 2016, USD/CNY=6.67, USD/HKD=7.76
Note: 1 TAL and Triton pro forma financials as of Dec 31, 2016
 4 Diversified financing channels
Selected financings Relationship banks
RMB 45.9bn1 undrawn
 Equity
credit facilities
 Completed RMB 16bn A-share private placement in Dec 2015
 Completed RMB 3.5bn A-share private placement in 2014
 A-share  Wanjiang Financial Leasing listed on NEEAQ in Nov 2015
 Bond market  Debt
 Successfully completed RMB 7bn domestic super short-term
 Domestic banks
commercial paper registered in 2016 and 5bn Medium-term
Notes，4bm Perpetual Notes in 2017
 Wanjiang Financial Leasing approved to issue financial bond of
RMB 3bn in Jun 2016

Onshore
Offshore

 Bond market  Obtained credit facilities from Deutsche Bank and other banks, with
total amount of US$500mm in May 2014
 Banks
 Issued US$ 636mm fixed-rate bond in Oct 2013
– Secured loans
 3b unsecured bond, 5.5 TLB in 2017
– Credit facilities

 Bond market  Issued 4 ABS with total amount of US$1.4bn since 2012

 Banks  Issued 2 ABS with total amount of US$0.45bn since 2017

 Container ABS market

Source: Company information
 5 Strong support from HNA Group

Fortune Global 500 company

 Over RMB 1000bn of total assets  Over RMB 600bn of annual revenue

Travel Financial services Infrustructure and retailing Logistics and others

HNA Aviation+ HNA Tourism HNA Capital HNA Holding HNA Tech Logistics

 One of China’s top 4 airline groups  China’s largest non-banking leasing  Total assets over 350bn  Total assets over 180 billion
 Interest in 23 airlines company  13 airports  Owned over 50 member
 1250+ aircraft in its passenger and cargo fleet  assets under management (“AUM”)  17 department stores and 1600 companies
 Strong team for aircraft maintenance and over RMB 340bn, ~30 member commercial retail stores  Over 60000 employees around
aviation services companies and over 1,200
the world
 Awarded “the World’s Best Tourism domestic outlets
Investment Group” by World Tourism Forum

Strong support from parent

Large combined fleet offers negotiation company- HNA Capital invested RMB
leverage vs. Airbus and other suppliers 3.2bn into Bohai Capital through its
RMB16bn private placement
 6 World class management teams in China and overseas

Mr. Jin Chuan

Chairman, CEO
■ 25 years of experience
■ Previously worked as General Manager of Hong Kong International Aviation Leasing Co., Ltd. and CFO of Seaco

Mr. Ren Weidong Mr. Ma Weihua Mr. Guo Zhangang Miss. Bai Xiaoyu Dómhnal Slattery John Higgins Jeremy Matthew
Vice Chairman, Chief Investment Officer, Chief Financial Officer Chief Risk Control Officer CEO President and CEO
Chief Operating Officer Secretary of the Chief Commercial Officer
Board of Directors

■ 25 years of ■ 12 years of ■ 26 years of finance ■ 7 years of ■ 26 years of industry ■ >20 years of ■ 17 years of
experience experience related experience, experience experience experience experience
■ Previously worked as ■ Previously worked including 3 years ■ Also worked as ■ Highly respected ■ Previously worked ■ Rich management
the General Manager as the Director, experience of Manager of CEO in aircraft as Chief experience at GE
of Yangtze River Deputy Manager internal audit and Financial leasing industry Commercial Officer group
International Leasing, and Secretary of risk control Department ■ Founded own of RBS Aviation
and Chairman of the Board at ■ Previously worked aircraft consulting Capital
Hong Kong Airlines Xinjiang Huitong at Bohai firm before being ■ Rich experience in
Group International Trust acquired by RBS GPA, GECAS
as CFO

 Top team in China  Strong track  Robust and prudent financial  The most respected management teams within the global
record in M&A decision making aircraft and container leasing industry
 7 Stringent risk management
Business
 Stringent selection of industries
capable of providing attractive leasing
opportunities
 Mitigate credit risks by diversifying
industry exposure
 Stringent procedures on customer
selection and portfolio management
Robust risk management system across global and domestic leasing operations
Aviation
 Sophisticated, rigorous and proactive
risk management systems that uses
proprietary analytical tools and a
rigorous corporate governance structure
to manage asset, credit and liability risks
closely and proactively
 The framework has been developed and
refined by the management team since
our inception
Source: Company information
Strategic
 Focus on risks related to business
operations, corporate credit
environment, finance and accounting,
and financial markets
 Risk reporting framework to monitor
overall risk at the corporate and
strategic levels
Container
 Utilizing SAP’s enterprise software to
closely monitor the complete leasing
process, from purchase, lease to
maintenance and disposal
 Established a Credit Risk Matrix to
asses the overall credit rating of clients
based on their operational and financial
performance, operating history,
transaction history with Seaco, and to
determine the credit line
Best Risk Management
Company by
Fortune China in 2016
Operational
 Continuous analysis and monitoring of
risks related to:
 Customer creditworthiness
 Potential impairment of lease
receivables
 Changes in residual valuations of
leased assets
 Maturities of assets and liabilities
Domestic financial leasing
 Dedicated and experienced risk
management team for all subsidiaries
 Ongoing monitoring of operating
metrics, regular stress tests under
management oversight
 Quarterly review for new clients and
annual review for all clients
 Stringent risk management regarding
sanction, anti-corruption and anti-
money laundry
Business Overview

Key Credit Highlights

Financial Performance

Contents
 Strong growth supported by organic growth and acquisitions
Total revenue Total assets

(RMB bn) (RMB bn)

Express Express
delivery delivery
services, 2016, services, 2016,
24.3 Express 216.6
Express delivery
delivery Express services, 2015,
Express Express Express
services, 2015, delivery 131.9
delivery delivery delivery
services, 2013, services, 2014, 9.8 services, 2013, services, 2014,
6.4 6.9 57.1 67.7

Gross profit breakdown by segment1

(RMB mm)
sum, 2016, 8,892
Others, 2016, 127
Equipment,Real2016, 309 2016, 276
estate,
Infrastructure, 2016, 1,238
Container leasing and sales,
sum, 2015, 4,876
Others, 2015, 114 2016, 2,038
Real325
Equipment, 2015, estate, 2015, 60
sum, 2013, 3,146 sum, 2014, 3,181 Infrastructure, 2015, 680
Real400
Equipment, 2013, Real
estate, 2013, 146 Equipment, 2014, 427 estate, 2014, 141 Container leasing and sales, Aircraft leasing and sales, 2016,
Infrastructure, 2013, 514 Infrastructure, 2014, 388
Container leasing and sales, Container leasing and sales, 2015, 2,564 4,904
2013, 1,221
Aircraft leasing and sales, 2013, 2014, 1,358
Aircraft leasing and sales, 2014, Aircraft leasing and sales, 2015,
864 867 1,133

Aircraft leasing and sales Container leasing and sales Infrastructure Equipment Real estate Others

Source: Company filings

 Strong growth in cash flows
Adj. EBITDA1 Funds from operations2

(RMB bn) (RMB bn)

Express Express
delivery delivery
services, 2016, services, 2016,
12.3 8.2

Express
Express delivery
delivery services, 2015,
services, 2015, 4.3
6.2 Express Express
Express Express delivery delivery
delivery delivery services, 2013, services, 2014,
services, 2013,services, 2014, 2.8 2.9
4.1 4.1

Source: Company filings

Notes: 1 EBITDA adjusted for rental expenses; 2 Funds from operations (“FFO”) = Adjusted EBITDA – interest expense – current taxes
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