Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Shareholder Meeting (2009)
36 slides from Auckland International Airport's shareholder meeting presentation, 2009
Slide 1: Auckland Airport Annual Meeting 2009
1 Auckland Airport Annual Meeting 2009 Anthony Frankham Simon Moutter
Slide 2: Anthony Frankham - Chairman
2 Anthony Frankham - Chairman Welcome Your Board & Management team Today’s meeting order
Slide 3: The Board of Directors
3 The Board of Directors Anthony Frankham Keith Turner Joan Withers Richard Didsbury John Brabazon Sir Henry van der Heyden James Miller Marko Bogoievski (alternate) Absent: Lloyd Morrison
Slide 4: The Management team
4 The Management team Simon Moutter Charles Spillane Simon Robertson Judy Nicholl Tony Gollin Andrew Pirie Glenn Wedlock Philip Cory-Wright Adrian Littlewood Mary-Anne Powell Peter Alexander
Slide 5: Meeting order
5 Meeting order 1. Notice of Meeting 2. Proxies 3. Chairman’s address 4. Chief executive’s review 5. Resolutions 6. Questions 7. Close
Slide 6: Chairman's address
6 Chairman’s address Highlights of 2009 Board focus Where we are today Since June 30 Outlook for 2010
Slide 7: Highlights of 2009
7 Highlights of 2009 Extraordinary economic conditions Voted one of world’s top 10 airports Two new international airlines won Passenger volumes held up well Retail revenue growth achieved Driving operational efficiencies Balance sheet strengthened New leadership team and new strategy in place
Slide 8: Key operational milestones
8 Key operational milestones New $50m international pier opened Aeronautical charge increase deferred Big investment in air service development JR Duty Free joined as a second operator New border processing technology trialled Air New Zealand judicial review dropped
Slide 9: Board has been focused
9 Board has been focused Have kept eye on long-term horizon Managing downsides and preparing for upsides A cohesive Board Succession-planning New additions to Board
Slide 10: Where we are today
10 Where we are today Ridden economic storm well to date Prepared for return to growth Capacity and infrastructure in place Responsible and responsive governance continues Strong leadership in place
Slide 11: Since June 30
11 Since June 30 Passenger volume decline beginning to turn Domestic up 5.1% International up 1.2% Deferred northern runway Regulatory environment developing
Slide 12: Outlook for 2010
12 Outlook for 2010 Dividend Reinvestment Plan Slow but steady stabilisation Further implementation of growth strategy Forecasting will remain very difficult Guidance update Continued board focus on managing downside risk and preparing for upside opportunities
Slide 13: To close
13 To close We continue to value our shareholder support Chief executive Simon Moutter to follow
Slide 14: Chief executive's review
14 Chief executive’s review Why you’ve made a good investment
Slide 15: The state of the market
15 The state of the market Aviation sector under heavy pressure Passenger volumes down substantially on highs of 2007 Major customer weathering the storm Unsure if we are through worst Auckland Airport proactively managing conditions
Slide 16: Top-line financial results
16 Top-line financial results Revenue $369.2m up 5.2%, driven by strong results in Retail Operating EBITDA $280.4m up 1.6% Capital expenditure $87.5m down 38.8% Underlying profit $105.9m up 2.1% Total dividend for the year 8.20cps Solid results given the state of the aviation market
Slide 17: Sound growth strategy
17 Sound growth strategy Vision of creating value from movement of people and goods Getting “fighting fit” Making the most of what we have Encouraging a healthy market Looking for new opportunities
Slide 18: Leveraged for future growth
18 Leveraged for future growth Forecasts very difficult Expected decrease in (excluding transits & transfers) FY10 before increasing Focused on influencing above base (Q1 positive) Impact of each 100k increase in international passengers on EBITDA is approximately $2.0 to $2.3m
Slide 19: Delivering tourism value
19 Delivering tourism value Further air service development activity High-growth market opportunities Growing supply to stimulate demand Value to Auckland Airport delivers value to New Zealand
Slide 20: Proudly serving New Zealand
20 Proudly serving New Zealand Investing in an airport that all New Zealanders can be proud of Working hard to improve the traveller experience Competing with Australasian airports to bring airlines here
Slide 21: Growing passenger volumes
21 Growing passenger volumes Asia-Pacific forecast to grow the fastest New aircraft types changing market Low cost carrier opportunities New air services sales pipeline established It’s all about growing supply to stimulate demand Recent trans-Tasman growth is evidence of these strategies in action
Slide 22: Improving capital intensity
22 Improving capital intensity Changing conditions make it sensible to review spend and planning priorities Northern runway deferred, other medium-term development plans being reviewed Process efficiency and new technology enables more Today passengers using current infrastructure Tomorrow
Slide 23: Managing retail opportunity
23 Managing retail opportunity Minimum guarantees a feature of most concession agreements Typical structure is 80-90% trailing 105 105 101 ratchet 90-93 Benefit is high exposure to upside, protection to downside Biggest driver is duty free, currently affected by unravelling of single operator model
Slide 24: Using our property assets
24 Using our property assets Looking to accelerate property development activity – Hotel the first 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 “property partner”
Slide 25: Reducing regulatory risk
25 Reducing regulatory risk Process continuing, a regulatory pathway clearing Regime limited to information disclosure, does not recommend price control, dual-till maintained Emerging as similar to proven and stable Australian regime Fully engaged in process Land valuation in the regulated asset bas
Slide 26: The case for investment
26 The case for investment Outlook for FY10 net profit after tax $93m to $100m Capital expenditure forecast range $60m to $65m, excluding yet to be committed property development Downside risks being mitigated Unsure if we are through the worst but may be at or near the demand trough High upside lev
Slide 27: It's a great business.
27 Thank you for the opportunity to lead your company It’s a great business.
Slide 28: Resolutions
28 Resolutions Constitution provides for up to eight directors Two directors standing for re-election Two new directors standing for election All to address meeting Voting by way of poll at end of meeting
Slide 29: Re-election of Director
29 Re-election of Director Re-election of John Brabazon
Slide 30: Re-election of Director
30 Re-election of Director Re-election of Richard Didsbury
Slide 31: Election of Director
31 Election of Director Election of Sir Henry van der Heyden
Slide 32: Election of Director
32 Election of Director Election of James Miller
Slide 33: Auditors
33 Auditors Deloitte is automatically reappointed as auditor Auditors fees to be fixed by the directors
Slide 34: Questions
34 Questions
Slide 35: Polls and Close
35 Polls and Close Polls to be conducted Formal proceedings closed Thank you for your attendance Please join the directors for refreshments
Slide 36: Thank you
Bl aipot™ Thank you
Auckland International Airport — Shareholder Meeting (2009) on 6ix