Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2020 Earnings Presentation
33 slides from Auckland International Airport's earnings presentation, Aug 20, 2020
Slide 1: Annual Results Presentation
Annual Results Presentation 20 August 2020 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2020 Annual Results Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription,
Slide 3: Highlights
Highlights
Slide 4: An incredible year…
Our continuing Financial Outlook Highlights 2020 journey performance 4 Annual Results An incredible year… GBMD construction
Slide 5: Results at a glance
Results at a glance 2020 Annual Results Highlights Revenue Reported profit Passenger Operating after tax movements cashflow performance $567.0m $193.9m 15.5m $175.8m Financial (23.7)% (63.0)% (26.5)% (53.2)% Our continuing journey Earnings per share 15.2 cps Outlook EBITDAFI Underlying Aircraft Capi
Slide 6: The impact of COVID-19 is unprecedented
The impact of COVID-19 is unprecedented 2020 Annual Results Highlights Aeronautical Retail Transport performance Financial $233.6m revenue (25.3)% $141.5m income (37.3)% $50.3m revenue (21.7)% Lower PAX reflecting COVID impact Difficult retail environment: Slightly less decline than in domestic Our
Slide 7: The impact of COVID-19 is unprecedented (con’t)
The impact of COVID-19 is unprecedented (con’t) 2020 Annual Results Monthly passenger numbers Highlights 110% 100% 90% Auckland Airport annual passenger movements Monthly PAX as a % of PCP performance Financial 80% 25 70% PAX Millions Christchurch earthquake 60% 20 50% Our continuing 40% journey Sub
Slide 8: Financial performance
Financial performance
Slide 9: Performance impacted by slowdown in the 2H20
Performance impacted by slowdown in the 2H20 2020 Annual Results For the year ended 30 June ($m) 2020 2019 Change Highlights Revenue 567.0 743.4 (23.7%) Expenses1 306.6 188.6 62.6% performance Financial Earnings before interest, taxation, depreciation, 260.4 554.8 (53.1%) fair value adjustments and
Slide 10: Property steady, while all other income declined
Property steady, while all other income declined 2020 Annual Results For the year ended 30 June ($m) 2020 2019 Change Highlights Airfield income 100.6 127.6 (21.2%) Passenger services charge 133.0 185.1 (28.1%) performance Financial Retail income 141.5 225.8 (37.3%) Car park income 50.3 64.2 (21.7%)
Slide 11: Cost reduction measures offset by one-off costs
Cost reduction measures offset by one-off costs 2020 Annual Results For the year ended 30 June ($m) 2020 2019 Change Highlights Staff 62.9 59.1 6.4% Asset management, maintenance and airport operations 77.5 81.1 (4.4%) performance Financial Rates and insurance 18.0 16.1 11.8% Marketing and promotion
Slide 12: Non-COVID related opex down in the second half
Non-COVID related opex down in the second half 2020 Annual Results For the half year ended 30 June ($m) 2H20 2H19 Change Highlights Staff1 28.7 29.3 (2.0%) Asset management, maintenance and airport operations 35.0 42.5 (17.6%) performance Financial Rates and insurance 9.1 8.2 11.0% Marketing and pro
Slide 13: Balance sheet remains strong
Balance sheet remains strong 2020 Annual Results For the year ended 30 June ($m) 2020 2019 Change Highlights Non-current assets 8,448.7 8,590.8 (1.7%) Property, plant and equipment 6,060.8 6,577.1 (7.8%) performance Financial Investment properties 2,042.7 1,745.4 17.0% Other non-current assets 345.2
Slide 14: Our continuing journey
Our continuing journey
Slide 15: The year pre-COVID-19
The year pre-COVID-19 2020 Annual Results The eight-month period to the end of February was one of continued delivery Highlights Aeronautical Operations Infrastructure performance Financial SEOUL VANCOUVER Our continuing journey NEW YORK DALLAS Outlook • New international routes to Vancouver and • D
Slide 16: The year pre-COVID-19 (cont’d)
The year pre-COVID-19 (cont’d) 2020 Annual Results The eight-month period to the end of February was one of continued delivery Highlights Retail Transport Property performance Financial Update Our continuing journey Outlook • Opened the two-storey Vantage Bar • Work began on the Northern road networ
Slide 17: Impact of COVID-19
Impact of COVID-19 2020 Annual Results Unprecedented reduction in passengers has impacted the entire industry Highlights • The global spread of COVID-19 and the subsequent imposition Phases of Auckland Airport’s COVID strategy of travel restrictions has had a profound impact on the aviation industry
Slide 18: Response to COVID-19: Respond
Response to COVID-19: Phase 1 Respond Recover Accelerate 2020 Annual Results Auckland Airport moved quickly to respond to the rapidly changing Highlights environment that COVID-19 created • Following the outbreak, Auckland Airport immediately revised operational procedures to cater for the new envir
Slide 19: Response to COVID-19 (cont’d): Secured liquidity
Response to COVID-19 (cont’d): Phase 1 Respond Recover Accelerate 2020 Annual Results Secured liquidity to support the business Highlights • Extended bank debt maturing in the period to 31 Credit metrics and key lending covenants December 2021 until calendar 2022 and 2023 For the year ended 30 June
Slide 20: Position for the recovery
Position for the recovery: Phase 2 Respond Recover Accelerate 2020 Annual Results Reposition the business to respond to a recovery in the Highlights travel industry IATA passenger forecast1 • Measured reduction in Operations allowing operating costs 12 2019 levels to be minimised whilst enabling a f
Slide 21: Investing in critical infrastructure when conditions support
Position for a recovery (cont’d): Phase 2 Respond Recover Accelerate 2020 Annual Results Investing in critical infrastructure when conditions support Highlights • The Auckland Airport Masterplan provides a vision for the Key future capacity projects development of the airport out to 2044 • Significa
Slide 22: Enhancing the domestic proposition
Position for a recovery (cont’d): Phase 2 Respond Recover Accelerate 2020 Annual Results Enhancing the domestic proposition Highlights Domestic Collection Point to be launched Expansion of the Hellmann Worldwide performance Financial Logistics facility Our continuing journey Outlook • Earlier invest
Slide 23: Accelerate when normality resumes
Accelerate when normality resumes: Phase 3 Respond Recover Accelerate 2020 Annual Results Long-term fundamentals remain Highlights Drivers Enablers Attractiveness of New Zealand performance Financial Our continuing journey Pent up demand for travel and the emerging middle class Jet fuel prices at ne
Slide 24: Sustainability
Sustainability 2020 Annual Results We are committed to operating in a safe and sustainable way, creating enduring value for all of our Highlights community, Auckland and New Zealand Safety Customer focus Environment performance Financial Our continuing journey Outlook Ensuring the wellbeing of every
Slide 25: Outlook
Outlook
Slide 26: Outlook
Outlook 2020 Annual Results Guidance Highlights • As we look to the 2021 financial year, we continue to face significant uncertainty relating to the timing of Auckland Airport’s recovery. We think the recovery could take longer than IATA’s and S&P’s current performance Financial forecasts of a full
Slide 27: Questions
Questions
Slide 28: Appendix: Passenger numbers
Appendix: Passenger numbers 2020 Annual Results For the year ended 30 June 2020 2019 Change Highlights International arrivals 3,948,248 5,284,325 (25.3%) International departures 3,791,012 5,222,335 (27.4%) performance Financial International passengers excluding transits 7,739,260 10,506,660 (26.3%
Slide 29: Appendix: Aircraft movements and MCTOW
Appendix: Aircraft movements and MCTOW 2020 Annual Results For the year ended 30 June 2020 2019 Change Highlights Aircraft movements International aircraft movements 44,962 57,082 (21.2%) performance Financial Domestic aircraft movements 94,175 121,689 (22.6%) Total aircraft movements 139,137 178,77
Slide 30: Appendix: Associates’ performance
Appendix: Associates’ performance 2020 Annual Results For the year ended 30 June ($m) 2020 2019 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 46.7 49.6 (5.8%) performance Financial EBITDA 31.3 34.3 (8.7%) Underlying Earnings (Auckland Airport share) 4.5 4.1 9.8% Domestic Pass
Slide 31: Appendix: Capital expenditure update
Appendix: Capital expenditure update 2020 Annual Results Refocusing of the capital expenditure programme Highlights • FY20 capital expenditure additions were $371m (net of $62m Historical and forecast capital expenditure capex write-offs and impairments), 30% up on FY19 and 500 reflecting the signif
Slide 32: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2020 Annual Results 2020 2019 For the year ended 30 June ($m) Reported Adjustments Underlying Reported Adjustments Underlying Highlights profit profit profit profit EBITDAFI per Income Statement1 260.4 - 260.4 554.8 - 554.8 Investment property fair value in
Slide 33: Glossary
Glossary 2020 Annual Results AMTN Australian medium term notes ARPS Average revenue per parking space ASQ Airport Service Quality EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates GBMD George Bolt Memorial Drive MCTOW Maximum certified ta
Auckland International Airport — FY2020 Earnings Presentation on 6ix