Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2011 Earnings Presentation
32 slides from Auckland International Airport's earnings presentation, Aug 23, 2011
Slide 1: A Higher Altitude: Auckland Airport Annual Results June 2011
A Higher Altitude Auckland Airport Annual Results June 2011
Slide 2: Vision and presenters
“Our vision is to build a great New Zealand business recognised as a world leader in creating value from modern airports” Simon Moutter Chief Executive Simon Robertson Chief Financial Officer This annual results presentation dated 23 August 2011 provides additional comment on the media and financial
Slide 3: A break-out result
A break-out result Break-out profit result despite global volatility and natural events/disasters Underlying profit $120.9m, up 15.1% on FY10 and at high-end of guidance as revenue growth outstrips cost growth Total revenue $397.7m, up 9.5% on FY10 through excellent passenger volume and retail yield
Slide 4: A year of highlights
A year of highlights Exceptional resilience of all our airports exhibited again with solid growth achieved despite negative external influences Focus on Asia paying off in air-services and passenger growth, particularly with China Government highly engaged and supporting us on growth initiatives Int
Slide 5: A year of highlights
A year of highlights Momentum of new Auckland Airport Business District vision evident in expanding property development activity Novotel Auckland Airport launched with exceptional customer feedback and very strong early trading performance Partnerships with Queenstown and North Queensland bedded do
Slide 6: Results in more detail
Results in more detail 2011 Annual Results 6
Slide 7: Results overview
Results overview 2011 $m 2010 $m % change Revenue 397.7 363.1 9.5 Expenses (99.5) (86.8) 14.6 Earnings before interest, taxation, depreciation, fair-value 298.2 276.3 7.9 adjustments and investments in associates (EBITDAFI) Share of profits of associates 4.8 0.1 Investment property fair value gain 2
Slide 8: Underlying profits explained
Underlying profits explained 2011 2010 Reported Adjustments Underlying Reported Adjustments Underlying earnings earnings earnings earnings $m $m $m $m $m $m EBITDAFI 298.2 - 298.2 276.3 - 276.3 Share of profit of associates 4.7 (4.3) 0.4 0.1 - 0.1 Gain on sale of an associate 1.2 (1.2) - - - - Deriv
Slide 9: Revaluations of assets
Revaluations of assets Asset Classes Asset values Asset values Difference Recognised in Recognised in Total before after the Income Other revaluations revaluations Statement Comprehensive Income $m $m $m $m $m $m Land 1,506.0 1,909.3 403.3 (8.8) 412.1 403.3 Buildings and Services 518.2 518.3 0.1 (43
Slide 10: Passenger growth strong at all airports
Passenger growth strong at all airports International pax grew 4.9% at Auckland, 20.7% at Cairns and AKL Passenger Growth Rates 49.7% at Queenstown 2011 Ash cloud Domestic pax steady at Auckland 10.0% impact in June despite withdrawal of Pacific Blue 8.0% 2011 6.0% Domestic passengers grew 14.3% 4.0
Slide 11: Strong trans-Tasman and Asia markets
Strong trans-Tasman and Asia markets Particularly good growth International Arrivals - by country of between Australia and New last residence 1,800,000 Zealand and from Asian 1,600,000 markets 1,400,000 New Zealand outbound up 1,200,000 6.0% on last year 1,000,000 China inbound up 26.5% on 800,000 l
Slide 12: Aircraft weight trends
Aircraft weight trends MCTOW Trend FY11 vs. FY10 New services lifted 7.0% international MCTOW 5.0% Ash cloud during FY11 3.0% impact in June 1.0% 2011 Withdrawal of Pacific Oct Nov Dec Mar May Jul Aug Sep Apr Jan Jun Feb -1.0% Blue from domestic -3.0% market in October 2010 -5.0% was followed by a -
Slide 13: Revenues lead the growth
Revenues lead the growth Particularly strong retail 2011 $m 2010 $m % change performance on back of Airfield 72.5 66.7 8.7 international terminal redevelopment Passenger service charge 78.8 73.3 7.5 Terminal services charge 28.3 27.8 1.9 Airfield revenue reflects reversion to scheduled Retail 111.1
Slide 14: Expenses growth fuelling revenue growth
Expenses growth fuelling revenue growth 2011 $m 2010 $m % change Staff 32.6 31.6 3.3 Asset management, maintenance and airport operations 32.9 31.0 6.2 Rates and insurance 7.8 7.0 11.3 Marketing and Promotions 11.8 4.5 158.6 Other 14.5 12.7 13.8 Total expenses 99.5 86.8 14.6 Depreciation 56.9 55.7 2
Slide 15: Capital expenditure tightly managed
Capital expenditure tightly managed Category Amount Key projects Capital expenditure by $m First floor financial year Retail 10.4 redevelopment 160.0 Noise treatment of houses and schools, 140.0 Aeronautical 14.6 new Emirates VIP 120.0 lounge NZ Food Innovation 100.0 ($ Millions) centre, Formule 1 H
Slide 16: Debt profile extended
Debt profile extended Average interest rate for Debt Maturity Profile 400 FY11 reduced to 6.58% 350 (FY10 6.86%) 75 116 300 Average debt maturity 250 increased in FY11 to 4.16 200 years (FY10 3.17 years) 52 150 275 256 Underlying EBITDAFI 100 50 128 interest cover ratio 50 82 50 increased to 4.16 ti
Slide 17: Operating efficiencies improving
Operating efficiencies improving Financial performance 2011 2010 % change Underlying operating EBITDAFI margin 75.0% 76.1% (1.1) Underlying profit after tax return on capital employed 5.5% 5.6% (0.1) Financial position and gearing Debt/Debt + equity 30.5% 36.3% (5.8) Debt/EBITDAFI 3.64 3.92 (7.1) Op
Slide 18: Profit growth flows to shareholders
Profit growth flows to shareholders Final dividend of 4.70 cps a 2011 2010 % 5.6% increase from 4.45 cps in change FY10 Final Dividend CPS 4.70 4.45 5.6 Total Dividend CPS 8.70 8.20 6.1 Record date for dividend is 7 October 2011 DRP continues with price set at Final Dividend $m 62.2 58.3 6.7 5 day V
Slide 19: Auckland air-services in 2011
Auckland air-services in 2011 Annual Airline Service Airport Route Start Date Capacity Emirates Up-gauge Auckland Melbourne Aug-10 72,000 Jetstar New service Auckland Melbourne Dec-10 130,000 Jetstar Increase frequency Auckland Queenstown Dec-10 74,000 China Airlines New service Auckland Brisbane -
Slide 20: NQA and QAC air-services in 2011
NQA and QAC air-services in 2011 Annual Airline Service Airport Route Start Date Capacity Jetstar New service Queenstown Melbourne Dec-10 37,000 Jetstar New service Queenstown Gold Coast Dec-10 37,000 Total new services for Queenstown in 2011 74,000 Qantas New service Cairns Port Moresby Jul-10 92,0
Slide 21: Growing air-services remains a priority
Growing air-services remains a priority Annual Airline Service Airport Route Start Date Capacity Jetstar New service Auckland Dunedin Jul-11 129,000 China Southern Increase frequency Auckland Guangzhou Oct-11 90,000 Air NZ Increase frequency Auckland Beijing, Shanghai Dec-11 17,000 Air NZ Up-gauge A
Slide 22: Retail performance outstanding
Retail performance outstanding Revenue growth (excluding FX) over Strong retail growth in the pcp current year driven 16.00% significantly by the new 14.00% passenger experience in international departures 12.00% Ash cloud impact Retail income was up 16.0% 10.00% in June 2011 from FY10 ITB developme
Slide 23: Car parking another highlight
Car parking another highlight Online parking tool has Car Park Volume - stay of 1 day or been operating for a year more % change over prior year delivering improvements in 16.0% utilisation, propensity, share and yield 14.0% 12.0% Parking products available to suit all market 10.0% requirements 8.0%
Slide 24: Property developments
Property developments Surge of property developments recently completed or nearing completion Toll warehouse/office and Quad 5 office building have commenced construction Investment property rental income will benefit from recent developments in 2012 Amenities being developed will assist in maximisi
Slide 25: NQA milestones
NQA milestones 2011 2010 % change Published Milestones Passenger Movements International - Cairns (ex transits) 0.67 0.56 19.6 0.64 Domestic – Cairns & Mackay 4.22 3.91 8.0 4.20 Financial Non-aero revenue (AUD) 35.1 30.2 16.2 34.0 Total revenue (AUD) 102.7 87.3 17.6 Not published Expenses (AUD) 43.2
Slide 26: Queenstown
Queenstown Queenstown legal Queenstown Airport 2011 2010 % change position behind us and performance actual performance Passenger Movements strong International 161,089 107,572 49.7 Strategic alliance is Domestic 763,159 703,892 8.4 delivering value and we believe further strong growth remains Finan
Slide 27: Our future
Our future 2011 Annual Results 27
Slide 28: Working towards a new regulatory environment
Working towards a new regulatory environment Preparing for the first information disclosure reporting under the new regime in May 2012 First stage is a revaluation of land as at 30 June 2009 in accordance with methodology established by Commerce Commission In conjunction with this and the other reva
Slide 29: Summary outcomes and impact
Summary outcomes and impact June 2011 value $m June 2009 value $m Land in current use 387.3 332.2 Land held for future use 175.8 150.6 Total 563.1 482.8 Estimate of opening Regulated Asset Base (RAB) at 30 June 2009 $m Allocated RAB under previous disclosure regime as at 30 June 2009 1,346 Less work
Slide 30: A vision for unlocking future growth
A vision for unlocking future growth Long-term working towards a dual-runway, integrated terminal solution at Auckland Airport which will unlock more growth potential for NZ tourism and trade Growing demand serviced by larger A320 aircraft and faster passenger processing capabilities mean the existi
Slide 31: Looking ahead
Looking ahead We are not finished with our growth story - we believe there is further momentum and we intend to capture this for investors We expect profit for FY12 to be in the $130 million‟s (excluding fair value changes and one-off items) Capital expenditure forecast at around $80 million excludi
Slide 32: Questions?
Questions? 2011 Annual Results 32
Auckland International Airport — FY2011 Earnings Presentation on 6ix