Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2013 Earnings Presentation
25 slides from Auckland International Airport's earnings presentation, Feb 21, 2013
Slide 1: Sustaining Success
Sustaining Success Interim Results 2013 | Auckland International Airport BA Auckland iP™) Airport aad
Slide 2: Adrian Littlewood and Simon Robertson
Adrian Littlewood Chief Executive Simon Robertson Chief Financial Officer This interim results presentation dated 21 February 2013 provides additional comment on the financial materials released before the market opened on the same date. As such, it should be read in conjunction with, and subject to
Slide 3: Growth momentum has been maintained
Growth momentum has been maintained A privilege to lead a great New Zealand company that plays a critical role in New Zealand’s economic future A solid result for the six months to December 2012 as we continue a run of three consecutive years of profit growth Business has maintained growth momentum
Slide 4: Company is in great heart and has earned respect by delivering results
Company is in great heart and has earned respect by delivering results Have spent time meeting a wide range of different stakeholders including staff, customers, suppliers, government and industry A great company with a significant and diverse core Committed team who are ambitious for the company an
Slide 5: Continue to look up and ahead for future growth opportunities
Continue to look up and ahead for future growth opportunities Ambitious strategy for last four years targeting accelerated travel, trade and tourism growth The strategy has delivered but it still remains relevant today – the fundamentals are the same Continue to refine our existing approach and look
Slide 6: 2013 interim results in detail
2013 interim results in detail Simon Robertson Chief Financial Officer 6
Slide 7: A solid first half outcome
A solid first half outcome Auckland Airport delivered solid first half financial results, despite the challenge of the prior corresponding period being boosted by Rugby World Cup activity Revenue increase to $223.6m, up 3.6% driven by yield growth Car park key driver of growth in non-aeronautical re
Slide 8: Summary half year financial results
Summary half year financial results 6 months to 6 months to % 31 Dec 2012 ($m) 31 Dec 2011 ($m) change Revenue 223.552 215.867 3.6 Expenses 57.191 54.506 4.9 Earnings before interest, taxation, depreciation, fair value adjustments and 166.361 161.361 3.1 investments in associates (EBITDAFI) Share of
Slide 9: Underlying profit growth
Underlying profit growth 6 months to 31 Dec 2012 ($m) 6 months to 31 Dec 2011 ($m) Reported Underlying Reported Underlying earnings Adjustments earnings earnings Adjustments earnings Earnings before interest, taxation, depreciation, fair value 166.361 - 166.361 161.361 - 161.361 adjustments and inve
Slide 10: Solid revenue growth against a strong comparable period
Solid revenue growth against a strong comparable period 6 months to 31 Dec 2012 ($m) 6 months to 31 Dec 2011 ($m) Non- Non- Aeronautical aeronautical Total Aeronautical aeronautical Total % revenue revenue revenue revenue revenue revenue change Airfield income 40.836 - 40.836 39.476 - 39.476 3.4 Pas
Slide 11: Expenses reflect our investment in growth
Expenses reflect our investment in growth 6 months to 6 months to % 31 Dec 2012 ($m) 31 Dec 2011 ($m) change Staff 18.174 17.123 6.1 Asset management, maintenance and airport operations 19.276 18.796 2.6 Rates and insurance 4.766 4.478 6.4 Marketing and promotions 6.977 6.357 9.8 Other 7.998 7.752 3
Slide 12: North Queensland Airports – Growing profitability
North Queensland Airports – Growing profitability 6 months to 6 months to % New services to Cairns and Mackay point 31 Dec 2012 31 Dec 2011 change to continued business growth in NQA: Passenger performance • Cairns International – China Eastern Cairns international 391,417 423,735 (7.6) 2 x weekly s
Slide 13: Queenstown – Outstanding lift in passenger volumes
Queenstown – Outstanding lift in passenger volumes Additional services and capacity on 6 months to 31 Dec 2012 6 months to 31 Dec 2011 % change domestic and international routes drive Passenger performance outstanding passenger volume growth. Domestic passengers 488,225 399,070 22.3 On acquisition,
Slide 14: A greater return for shareholders
A greater return for shareholders Interim Dividend announced of 5.75cps, an increase of Gross returns - local currency 30.7% on the prior year interim dividend. 2,000 1,800 Interim dividend payable on 2 April 2013 to shareholders on the register on 15 March 2013. 1,600 1,400 Dividend increase driven
Slide 15: Adrian Littlewood, Chief Executive
Adrian Littlewood Chief Executive 15
Slide 16: Auckland passenger volumes hold up compared with RWC period
Auckland passenger volumes hold up compared with RWC period 6 months to 6 months to % 31 Dec 2012 31 Dec 2011 change International passengers 3,654,318 3,648,784 0.2 Transits 237,838 314,922 (24.5) Total international passengers 3,892,156 3,963,706 (1.8) Domestic passengers 3,355,718 3,129,650 7.2 T
Slide 17: Route dynamics are causing airlines to adapt
Route dynamics are causing airlines to adapt Source: SABRE, PAC, AIS, Statistics NZ, AIAL estimates 17
Slide 18: Innovative route development approach still delivering
Innovative route development approach still delivering New services for Auckland: • China Airlines: new service Taipei – Sydney – Auckland • Air New Zealand: seasonal services to Bali and Sunshine Coast • Hawaiian Airlines: new service Auckland to Hawaii from March • Jetstar and Air New Zealand have
Slide 19: Domestic terminal refurbishment on-track
Domestic terminal refurbishment on-track Works are underway to increase the capacity of the domestic terminal in a staged redevelopment: • Forecourt (Jan – March 2013) • Terminal (June 2013 – June 2014) Total cost of the refurbishment is estimated at approximately $29m. Refurbishment will allow all
Slide 20: Retail holds up well to the strong comparative period
Retail holds up well to the strong comparative period Retail revenue saw softer growth in six months to December 2012 compared to the prior period (0.9% to $62.4m) due to a strong retail performance during RWC 2011 Retail PSR growth rates performed strongly in July to September 2012, but fell slight
Slide 21: Delivering car park product and price choice brings reward
Delivering car park product and price choice brings reward Car park continues strong yield growth with revenue up 9.7% to $20.5m. Key results include: • ARPS (Average Revenue Per car park Space), grew 13.9% on prior period • Online car park revenue dominates channel growth – up 43.6% in the six mont
Slide 22: Property gains in a tough market
Property gains in a tough market Rental income attributable to investment property grew to $19.9m in H1 2013, an increase of 14.4% compared to $17.4m in prior period. New developments include: • ITW commercial warehouse nearly complete • FLEX multi-unit warehouse facility just completed and 2 units
Slide 23: Regulation update
Regulation update The regulatory environment for airports in New Zealand has produced quality airports with below average charges. Auckland Airport has to consider regulatory risk as we contemplate a significant step towards growing domestic capacity. The Commerce Commission currently has an obligat
Slide 24: FY2013 – Modest lift in expectations
FY2013 – Modest lift in expectations Performance to date has been slightly ahead of our expectations, particularly domestic passenger growth. While challenges to aviation demand remain, we now have a modestly higher expectation of FY2013 financial outcomes. We expect capital expenditure for the full
Slide 25: Questions ?
Questions ? 25
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