Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2018 Earnings Presentation
28 slides from Auckland International Airport's earnings presentation, Feb 16, 2018
Slide 1: Interim Results 2018
Interim Results 2018 Adrian Littlewood Chief Executive Philip Neutze For personal use only Chief Financial Officer
Slide 2: Highlights
For personal use only Highlights FY18 interim results Adrian Littlewood, chief executive
Slide 3: Results at a glance
Results at a glance 2018 Interim Results For personal use only Highlights Revenue Passenger movements 6.9% $332.4m 6.4% 10.0m performance Financial Operating EBITDAFI Aircraft movements Our continuing journey 6.0% $250.1m 4.2% 88,113 Underlying profit Interim dividend per share 7.8% $133.1m 7.5% 10.
Slide 4: Highlights: milestones and key results
Highlights 2018 Interim Results For personal use only Milestones Key results Highlights 1 new airline and 4 new routes International passengers up 5.8%1, 1m 10% performance domestic passengers up 7.7% Financial Doubled international departures International passengers Growth in retail border p
Slide 5: Financial performance
For personal use only performance Financial FY18 interim results Philip Neutze, chief financial officer
Slide 6: Solid growth in underlying profit
Solid growth in underlying profit 2018 Interim Results For personal use only Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Revenue 332.4 310.9 6.9% performance Expenses 82.3 75.0 9.7% Financial Earnings before interest, taxation, depreciation, fair value adjustments and investme
Slide 7: Revenue growth across the business
Revenue growth across the business 2018 Interim Results For personal use only Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Airfield income 59.9 59.2 1.2% Passenger services charge 89.1 85.9 3.7% performance Financial Retail income 88.9 80.7 10.2% Car park income 31.4 28.9 8.7%
Slide 8: Continued passenger growth
Continued passenger growth 2018 Interim Results For personal use only Highlights For the 6 months to 31 December* 2017 2016 Change International arrivals 2,592,506 2,462,690 5.3% performance International departures 2,477,695 2,328,885 6.4% Financial International passengers excluding transits 5,070
Slide 9: Steady growth in movements and MCTOW
Steady growth in movements and MCTOW 2018 Interim Results For personal use only Highlights For the 6 months to 31 December* 2017 2016 Change Aircraft movements International aircraft movements 27,984 27,476 1.8% performance Financial Domestic aircraft movements 60,129 57,117 5.3% Total aircraft move
Slide 10: Expenses driven by business growth
Expenses driven by business growth 2018 Interim Results For personal use only Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Staff 27.3 24.9 9.6% Asset management, maintenance and airport operations 31.7 26.1 21.5% performance Financial Rates and insurance 6.7 6.1 9.8% Marketing
Slide 11: Associates’ performance
Associates’ performance 2018 Interim Results For personal use only For the 6 months to 31 December (NZ$m) 2017 2016 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 23.2 19.6 18.4% performance Financial EBITDAFI 17.0 13.1 29.8% Domestic Passengers 751,056 660,231 13.8% Internati
Slide 12: Our continuing journey
Our continuing For personal use only journey FY18 interim results Adrian Littlewood, chief executive
Slide 13: Connecting New Zealand to the world
Connecting New Zealand to the world 2018 Interim Results For personal use only Routes added since 2015 have connected Auckland with new cities of nearly Highlights 140 million people 30 international airlines performance 46 international Financial destinations domestic 19 destinations London Our con
Slide 14: Strategic priority: Growing Travel Markets
Strategic priority: Growing Travel Markets 2018 Interim Results For personal use only Increased capacity and strengthening load factors Highlights • Domestic airline capacity grew 5% in the six months to 31 December with increased frequency to Queenstown, Christchurch and regional destinations. Load
Slide 15: Strategic priority: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2018 Interim Results For personal use only Delivered stage two of international departures upgrade Highlights • Opened full new Duty Free offering and first tranche of Destination stores on schedule in December. Duty Free departure sales were up ~
Slide 16: International departures upgrade phasing
International departures upgrade phasing 2018 Interim Results For personal use only NEW MEZZANINE Highlights LEVEL performance Financial Our continuing journey Proposed phasing: Duty Free and Western Delivered precinct Q4 FY18 – Specialty & Luxury High Q1 FY19 Street Additional retail storage Q1 FY1
Slide 17: Parking revenue increase following capacity additions
Strategic priority: Strengthen our consumer business 2018 Interim Results For personal use only Parking revenue increase following capacity additions Highlights • Parking revenue up 8.7% with ARPS flat as parking income growth matched capacity increases • ~1,000 new spaces built at Park & Ride and ~
Slide 18: Strategic priority: Be fast, efficient and effective
Strategic priority: Be fast, efficient and effective 2018 Interim Results For personal use only Investing in our customer experience 60 Mobile international self- Highlights service check-in kiosks • New international departures processing and security screening area, including space for passengers
Slide 19: Strategic priority: Invest for future growth
Strategic priority: Invest for future growth 2018 Interim Results For personal use only Completed 1H FY18 2H FY18 FY19 and beyond Highlights Phase 3 • New emigration hall • Phased opening of • Remaining Speciality Extended outbound • Recompose space first new Speciality & & Luxury High Street Phase
Slide 20: Core infrastructure project delivery statistics
Strategic priority: Invest for future growth 2018 Interim Results For personal use only Core infrastructure project delivery statistics in the six months to 31 December 2017 Highlights 102% 112 % 100% performance Financial Our continuing journey Investment spend against Number of projects Number of
Slide 21: 16.3% growth in property revenue
Strategic priority: Invest for future growth 2018 Interim Results For personal use only 16.3% growth in property revenue Highlights Investment property • Completed developments: $90 million rent roll – 6,000m2 Ministry for Primary Industries building 250 hectares Landdevelopment performance availabl
Slide 22: Investing in safety
Strategic priority: Invest for future growth 2018 Interim Results For personal use only Investing in safety Highlights • Pro-active safety observations increased 84% reflecting our continuing investment in safety • Passenger injury rate down 26% following the performance Financial introduction of ne
Slide 23: Regulatory update
Regulatory update 2018 Interim Results For personal use only • Auckland Airport’s FY18-22 aeronautical pricing decision Highlights was announced in June 2017, following a comprehensive consultation process with our airline partners over 12 months performance • The Commerce Commission is reviewing th
Slide 24: Outlook
Outlook 2018 Interim Results For personal use only NQA investment Highlights • We have agreed to sell our 24.6% investment in NQA to existing investors for A$370m • The sale is subject only to securing the necessary performance Financial regulatory and counter-party approvals and will be completed i
Slide 25: Questions
For personal use only Questions
Slide 26: Appendix
For personal use only Appendix
Slide 27: Underlying profit reconciliation
Underlying profit reconciliation 2018 Interim Results For personal use only 2017 2016 Highlights Reported Adjustments Underlying Reported Adjustments Underlying For the 6 months to 31 December profit $m profit profit $m profit $m $m $m $m EBITDAFI 250.1 - 250.1 235.9 - 235.9 performance Financial Sh
Slide 28: Important notice and glossary
Important notice and glossary 2018 Interim Results For personal use only Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscriptio
Auckland International Airport — H1 FY2018 Earnings Presentation on 6ix