Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Shareholder Meeting (October 2010)
43 slides from Auckland International Airport's shareholder meeting presentation, Oct 28, 2010
Slide 1: Auckland International Airport Limited 2010 annual meeting
Auckland International Airport Limited 2010 annual meeting 1
Slide 2: Anthony Frankham - Chairman
Anthony Frankham - Chairman Welcome Introduction to your board Today’s meeting order
Slide 3: The board of directors
The board of directors Anthony Frankham John Brabazon Sir Henry van der Heyden Keith Turner Joan Withers Lloyd Morrison Richard Didsbury James Miller
Slide 4: Meeting order
Meeting order 1. Notice of Meeting 2. Proxies 3. Chairman’s address 4. Chief executive’s review 5. Resolutions 6. General Business 7. Close
Slide 5: Chairman's address
Chairman’s address • Where we have come from • Where we are today • Highlights of 2010 • Update since June 30 • Outlook for 2011
Slide 6: Where we have come from
Where we have come from Extraordinary transformation over last 15 years: • Passenger numbers doubled • From Council department to NZX and ASX • 2nd runway started and ready to recommence • World-class infrastructure and capacity in place • Creation of Airport Business District • Strategic partnershi
Slide 7: Where we are today
Where we are today • Rated by travellers as one of best airports in the world, with traveller experience at the heart • An engine of economic growth for New Zealand • Poised to play a major part in future of the new Auckland 7
Slide 8: Board future in good hands
Board future in good hands • Cohesive and committed board • Strong succession planning • Sir Henry Van der Heyden and James Miller joined in 2009 • Brett Godfrey standing today, with great airline experience • Lloyd Morrison welcomed back • Joan Withers to take over as Chair • Have necessary skills
Slide 9: Highlights of 2010
Highlights of 2010 • Aviation sector in better health than 12 months ago • Passenger growth returning • Gaining traction on our growth strategy • Better than expected results, underlying net profit of $105.1m • Successful equity raising • Strategic investments into North Queensland and Queenstown •
Slide 10: Since June 30
Since June 30 • Passenger volumes up • On track with our main forecasted value drivers • Can confirm 2011 guidance range • Dividend policy modified • DRP to continue for at least 12 months
Slide 11: Outlook for 2011
Outlook for 2011 • Growth in air-links critical to NZ economic growth – Auckland Airport can make a significant contribution • Good relationship forming with new Auckland City • Final commerce commission determination due in December • RWC preparations to be completed • Operating leverage has been s
Slide 12: To close
To close • We value our shareholder support • Chief executive Simon Moutter to follow
Slide 13: Chief executive's review
Chief executive’s review The importance of growth economies to New Zealand and how we intend to grow air-links to reach into those markets and drive trade and tourism
Slide 14: In 2009 we said .......
In 2009 we said ……. • Outlook for FY10 $93m to $100m • Capital expenditure $60m to $65m • Downside risks were being mitigated • We were unsure if we were through the worst • Building high upside leverage to economic recovery or early return to passenger growth trend-line
Slide 15: How did we go?
How did we go? • Underlying profit at $105.1m was well up on guidance • Capital expenditure managed down further to $54.3m • Revenue $363m down only 1.4%, in tough market conditions • Downside risks under control • Passenger volumes back on the increase in second half • Operating leverage set for st
Slide 16: Our 2010 learning's
Our 2010 learning's • Growth is fuelled by air-links • Trade is stimulated by tourism • NZ tourism mix still unbalanced • Tiger economies are critical • Aviation dynamics changing • Need for balanced carrier focus • Our strategy is beginning to impact
Slide 17: Growth is fuelled by air-links
Growth is fuelled by air-links • Our strategy is to grow passenger volumes by expanding air-links with growth markets • Tourism NZ and MED have also identified growth in air-links as a key priority Frequent • Air-links drive passenger traffic, business Non-Stop activity, and high-value exports Air L
Slide 18: Trade is stimulated by tourism
Trade is stimulated by tourism • Tourism is a precursor to trade • 90% of high-value global air freight transported in belly-holds of NZ passenger aircraft • Travel is a critical enabler for freight, business links and migration • Government priority ‘to increase tourism's economic contribution’ • T
Slide 19: Tiger economies vital to NZ
Tiger economies vital to NZ • Asia now biggest travel market in world and forecast to grow the fastest • If Asians travel as often as Americans, the global air travel industry will treble • Asia, Latin America and Middle East driving growth in global travel demand
Slide 20: Need for balanced carrier focus
Need for balanced carrier focus • Low fare carriers and global hub carriers rapidly expanding and targeting growth markets • National airline business models under market pressure in many countries • New generation aircraft impacting route economics and opening new direct route opportunities • New a
Slide 21: Our strategy is beginning to impact
Our strategy is beginning to impact • Traveller focused strategy in place and delivering growth outcomes • Principal goal is to accelerate international passenger movements • Growth markets and balanced mix of airlines key to success • Will capitalise on new generation ‘hub-busting’ aircraft • Seeki
Slide 22: We've had a clear focus
We’ve had a clear focus • Refocused business to sales-led engine of growth • Redirected resources into fuelling growth in travel, trade and tourism • Expanded footprint to increase influence with airlines and agencies to boost passenger volumes • Invested heavily in customer service, efficiencies an
Slide 23: We are busy growing air-links
We are busy growing air-links • Extra 2 million+ committed seats across Auckland, Queenstown, Cairns and Mackay, including: • Jetstar: AKL to Singapore 220,000 • Jetstar: Cairns to Osaka 126,000 • Continental: AKL to Houston 138,000 • Investing several millions annually in partnered promotional acti
Slide 24: Airport partnerships are helping
Airport partnerships are helping • Beefing up our offer through partnerships with like-minded and synergistic airports • Cairns & Mackay and Queenstown alliances cemented by minority ownership stakes • Collaborating on development of air links and multi-destination marketing when pitching to airline
Slide 25: We are growing our Auckland connections
We are growing our Auckland connections
Slide 26: We are getting more efficient
We are getting more efficient • Process efficiency and new technology enables more passengers using current infrastructure • Self-service check-in, SmartGate and Lean Six Sigma programme succeeding in providing simplified border process
Slide 27: Our Airport Business District is thriving
Our Airport Business District is thriving • Airport Business District plan achieved $115m deals in last year • 50 years supply of prime commercial and industrial land available • Airport location becoming even more central to city • Location of choice on broad range of attributes • Customer aligned
Slide 28: We are using our assets sensibly
We are using our assets sensibly • Master planning review complete • Northern runway construction deferred for a few more years • New roading plan developed to avoid $150m of uneconomic roading construction • Craigie Trust claim convincingly won to remove over-hang on commercial land holdings • Rapi
Slide 29: Making a big investment in Retail
Making a big investment in Retail • Most of way through $50m international terminal retail redevelopment • New duty-free shops open and going well • Deploying ‘proactive landlord’ model to terminal retailing • Focused on good-better-best choices in every product category • Competing very strongly in
Slide 30: A regulatory path is clearing
A regulatory path is clearing • Draft determination of Commerce Commission 31 May 2010 • Land valuations based on market value alternative use (MVAU) with revaluations going forward • Land held for future use is included in regulated asset base when commissioned (including holding costs) • Final det
Slide 31: Passenger volumes are growing
Passenger volumes are growing • First quarter of 2011 financial year Passenger growth rates up 4.6% for international (ex 16.00% transits) and 2.6% for domestic 14.00% 12.00% • Continues recent growth trend, 10.00% with pax growth rebounding well 8.00% in second half of the year from 6.00% low in Ma
Slide 32: 2011 and beyond: cleared for take-off
2011 and beyond: cleared for take-off We expect 2011 profit in the range of $112 to $118 million assuming international passenger growth in the order of 5% (excluding any fair- value changes and other one-off items) Double digit profit growth is a possible outcome of strategy by: Growing airline pas
Slide 33: We are determined to drive trade and tourism growth
We are determined to drive trade and tourism growth for the benefit of our shareholders and all of New Zealand
Slide 34: Resolutions
Resolutions • Constitution provides for up to eight directors • Two directors standing for re-election • One new director standing for election • All to address meeting • Voting by way of poll at end of meeting
Slide 35: Re-election of director
Re-election of director Re-election of Lloyd Morrison
Slide 36: Re-election of director
Re-election of director Re-election of Joan Withers
Slide 37: Election of director
Election of director Election of Brett Godfrey
Slide 38: Auditors
Auditors • Deloitte is automatically reappointed as auditor • Auditors fees to be fixed by the directors
Slide 39: Directors' fees
Directors’ fees • Last increase in 2007 • Proposed increase well below independent recommendation • Will involve share purchases to better align interests • Reflects significant repositioning of company in last two years
Slide 40: General Business
General Business Please wait for microphone and please state your name before asking a question
Slide 41: Retirement of Chairman
Retirement of Chairman Address by Joan Withers
Slide 42: Polls and close
Polls and close • Polls to be conducted • Formal proceedings closed • Thank you for your attendance • Please join us for refreshments
Slide 43: Thank you
Aine Thank you
Auckland International Airport — Shareholder Meeting (October 2010) on 6ix