Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2022 Earnings Presentation
32 slides from Auckland International Airport's earnings presentation, Feb 24, 2022
Slide 1: Interim Results Presentation
Interim Results Presentation 24 February 2022 Carrie Hurihanganui Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2022 Interim 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: Welcome to our new CEO
Welcome to our new CEO 2022 Interim Results Auckland Airport is delighted to have Carrie Hurihanganui join as our new Chief Executive Highlights • Ms Hurihanganui joined Auckland Airport on 8 February 2022 from Air New Zealand where she worked for 21 years, most recently in the role of Chief Operati
Slide 4: Highlights
Highlights
Slide 5: Results at a glance
Results at a glance 2022 Interim Results Highlights Revenue Reported profit Passenger Interim after tax 1 movements dividend performance $126.2m $108.8m 1.7m 0.0cps Financial -4.0% 273.9% -39.1% Our continuing journey Earnings per share 7.39 cps Outlook EBITDAFI Underlying loss Aircraft Capital 3 af
Slide 6: Results continue to reflect the impact of the pandemic
Results continue to reflect the impact of the pandemic 2022 Interim Results Highlights Aeronautical Retail Transport performance Financial $34.4m revenue -14.6% $6.9m income -1.4% $8.7m revenue -30.4% 1,720k passengers comprising: Majority of international retail closed Lower activity reflecting ong
Slide 7: Passenger numbers remain impacted by COVID
Passenger numbers remain impacted by COVID 2022 Interim Results The Delta outbreak has had a significant impact on airport operations in 1H22 with the imposition of domestic and international travel restrictions resulting in significantly reduced passenger numbers for the first six months of the yea
Slide 8: We continue to focus on what is under our control
We continue to focus on what is under our control 2022 Interim Results Continued focus on the safe Disciplined investment in asset Stabilising existing commercial Highlights operation of the airport and resilience, core aeronautical business and establishing new management of border infrastructure a
Slide 9: Financial performance
Financial performance
Slide 10: Total passenger numbers significantly down on prior year
Total passenger numbers significantly down on prior year 2022 Interim Results Pre-COVID Highlights For the six months ended 31 December 2021 2020 Change 20186 International arrivals 114,400 65,210 75.4% 2,724,021 International departures 137,518 88,765 54.9% 2,570,486 performance Financial Internati
Slide 11: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2022 Interim Results Pre-COVID Highlights For the six months ended 31 December 2021 2020 Change 2018 Aircraft movements International aircraft movements 8,349 6,760 23.5% 29,101 performance Financial Domestic aircraft movements 23,846 37,975 -37.2% 61,776 Total aircraft
Slide 12: Travel restrictions driving an underlying loss
Travel restrictions driving an underlying loss 2022 Interim Results Restated Highlights For the six months ended 31 December ($m) 2021 2020 Change Revenue 126.2 131.5 -4.0% Expenses 65.9 43.6 51.1% performance Financial Earnings before interest, taxation, depreciation, 60.3 87.9 -31.4% fair value ad
Slide 13: Lower PAX numbers impacted key income streams
Lower PAX numbers impacted key income streams 2022 Interim Results For the six months ended 31 December ($m) 2021 2020 Change Highlights Airfield income 26.2 30.8 -14.9% Passenger charges 8.2 9.5 -13.7% performance Financial Retail income 6.9 7.0 -1.4% Car park income 8.7 12.5 -30.4% Our continuing
Slide 14: Operating costs
Operating costs 2022 Interim Results Restated Highlights For the six months ended 31 December ($m) 2021 2020 Change Staff 21.7 21.0 3.3% Asset management, maintenance and airport operations 29.5 24.5 20.4% performance Financial Rates and insurance 10.4 10.6 -1.9% Marketing and promotions 0.8 0.2 300
Slide 15: Normalised opex increased for the expected recovery
Normalised opex increased for the expected recovery 2022 Interim Results 1H22 v 1H21 operating expenditure Highlights 80 8.3 65.9 70 61.1 (1.2) 3.4 (2.3) 14.1 performance 60 Financial 50 43.6 NZ$m 40 Our continuing journey 30 20 10 Outlook 0 Opex FY21 reversal - fixed FY21 reversal - Adjusted Increa
Slide 16: Disciplined approach to capital expenditure
Disciplined approach to capital expenditure 2022 Interim Results Lower aeronautical activity has facilitated the upgrade and renewal of key assets where it was prudent to do so in a low Highlights demand environment and the completion of revenue generating investment property projects Capital expend
Slide 17: Strong liquidity position
Strong liquidity position 2022 Interim Results Liquidity of $965 million to support the business Key credit metrics Highlights Test Dec-21 Jun-21 • Committed undrawn bank facility headroom of c.$929 million 9 (Jun-21: $832 million), and $35 million in available cash (Jun-21: Gearing covenant ≤ 60% 1
Slide 18: Balance sheet remains strong
Balance sheet remains strong 2022 Interim Results Restated Highlights As at ($m) Dec-21 Jun-21 Change Non-current assets 9,820.8 9,651.5 1.8% Property, plant and equipment 6,863.3 6,826.5 0.5% performance Financial Investment properties 2,801.3 2,641.4 6.1% Other non-current assets 156.2 183.6 -14.9
Slide 19: Our continuing journey
Our continuing journey
Slide 20: Safe management of the border
Safe management of the border Respond Recover Accelerate 2022 Interim Results The community outbreak of the Delta variant in August 2021 and the subsequent imposition of travel restrictions ensured Highlights COVID continued to have a profound impact on Auckland Airport • The short-lived positive st
Slide 21: Continuing to invest in critical infrastructure
Continuing to invest in critical infrastructure Respond Recover Accelerate 2022 Interim Results Low aeronautical activity continues to facilitate infrastructure upgrades with reduced passenger disruption. New Highlights projects will be triggered based on regulatory requirements, asset replacement o
Slide 22: Positioning for the recovery
Positioning for the recovery Respond Recover Accelerate 2022 Interim Results Domestic activity continues to drive the recovery in our retail and transport businesses Highlights Retail Transport 2H21 1H22 120% performance Financial Update 100% % of FY19 80% Our continuing journey 60% 40% 20% Outlook
Slide 23: Positioning for the recovery (cont'd)
Positioning for the recovery (cont’d) Respond Recover Accelerate 2022 Interim Results Development momentum and quality of tenants continue to provide $119 million Rent roll Highlights income growth • The 5-year rent roll CAGR of 10% demonstrates the strength of Auckland Airport's property developmen
Slide 24: Delivering on our sustainability agenda
Delivering on our sustainability agenda 2022 Interim Results Having set our new long-term ambitions as part of our Sustainability Pathway to 2030, we are defining the steps to get Highlights there and focusing on what matters Purpose Place People Community Kaupapa Kaitiakitanga Whānau Hapori perform
Slide 25: Uncertainty remains around timing of the recovery
Uncertainty remains around timing of the recovery 2022 Interim Results Auckland Airport remains well positioned for the expected recovery Highlights in aviation • Whilst we continue to face considerable uncertainty regarding the ongoing impact of COVID and the recovery in both international performa
Slide 26: Outlook
Outlook
Slide 27: Aeronautical pricing
Aeronautical pricing 2022 Interim Results Support from airlines to hold aeronautical charges flat for the first year of PSE4, providing stability in the short-term Highlights whilst preserving long-term value • Aeronautical prices to be held constant for FY23, the first year of PSE413 performance •
Slide 28: Outlook: Guidance
Outlook 2022 Interim Results Guidance Highlights • As we look to the remainder of the 2022 financial year, we continue to face significant uncertainty regarding the recovery of international passengers performance • Despite this uncertainty, we are providing underlying earnings Financial guidance fo
Slide 29: Thank you
Thank you
Slide 30: Appendix: Associates' performance
Appendix: Associates’ performance 2022 Interim Results For the six months ended 31 December ($m) 2021 2020 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 12.7 13.6 -6.6% performance Financial EBITDA 6.3 9.1 -30.8% Underlying Earnings (Auckland Airport share) 0.2 0.6 -66.7% Dom
Slide 31: Appendix: Underlying profit / (loss) reconciliation
Appendix: Underlying profit / (loss) reconciliation 2022 Interim Results 2021 Restated 2020 Highlights For the six months ended 31 December ($m) Underlying Underlying Reported profit Adjustments profit / (loss) Reported profit Adjustments profit / (loss) EBITDAFI per Income Statement 60.3 - 60.3 87.
Slide 32: Glossary
Glossary 2022 Interim Results CPS Cents per share BARNZ Board of Airline Representatives of New Zealand Inc. EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates GAAP Generally accep
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