Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2017 Earnings Presentation
28 slides from Auckland International Airport's earnings presentation, Feb 17, 2017
Slide 1: Interim Results 2017
Adrian Littlewood Chief Executive Philip Neutze Interim Results 2017 Chief Financial Officer For personal use only
Slide 2: Highlights
For personal use only Highlights FY17 interim results Adrian Littlewood, chief executive
Slide 3: Results at a glance
Results at a glance 2017 Interim Results For personal use only Highlights Revenue Passenger movements 10.8% $310.9m 12.4% 9.4m performance Financial Operating EBITDAFI Aircraft movements Our continuing journey 10.5 % $235.9m 8.9% 84,593 Underlying profit Interim dividend per share 18.6% $123.5m 17.6
Slide 4: Growing and supporting tourism
Highlights 2017 Interim Results Growing For personal use only and supporting tourism Highlights • Rapidly changing market structure – the number of international airlines servicing Auckland has increased 50% in only 18 months • International passengers up 11.9%1, domestic passengers up 11.7% perform
Slide 5: Financial performance
For personal use only performance Financial FY17 interim results Philip Neutze, chief financial officer
Slide 6: Strong half year result
Strong half year result 2017 Interim Results For personal use only Highlights 2016 2015 Change For the 6 months to 31 December $m $m Revenue 310.9 280.6 10.8% Expenses 75.0 67.1 11.8% performance Financial Earnings before interest, taxation, depreciation, fair value adjustments and investments in as
Slide 7: Strong revenue growth across the business
Strong revenue growth across the business 2017 Interim Results For personal use only 2016 2015 Change Highlights For the 6 months to 31 December $m $m Airfield income 59.2 50.2 17.9% Passenger services charge 85.9 75.5 13.8% performance Financial Retail income 80.7 78.6 2.7%1 Car park income 28.9 26
Slide 8: Exceptional passenger growth
Exceptional passenger growth 2017 Interim Results For personal use only Highlights For the 6 months to 31 December 2016 2015 Change International arrivals 2,462,690 2,209,510 11.5% International departures 2,328,575 2,070,923 12.4% performance Financial International passengers excluding transits 4,
Slide 9: Continuing growth in runway movements
Continuing growth in runway movements 2017 Interim Results For personal use only Highlights For the 6 months to 31 December 2016 2015 Change Aircraft movements International aircraft movements 27,476 24,343 12.9% performance Financial Domestic aircraft movements 57,117 53,357 7.0% Total aircraft mov
Slide 10: Expenses driven by business growth
Expenses driven by business growth 2017 Interim Results For personal use only 2016 2015 Change Highlights For the 6 months to 31 December $m $m Staff 24.9 22.4 11.2% Asset management, maintenance and airport operations 26.1 23.5 11.1% performance Financial Rates and insurance 6.1 5.7 7.0% Marketing
Slide 11: Associates' performance
Associates’ performance 2017 Interim Results For personal use only 2016 2015 Change For the 6 months to 31 December Highlights $m $m Queenstown Airport (24.99% ownership) Total Revenue 19.6 15.7 24.8% performance 12.0% Financial EBITDAFI 13.1 11.7 Domestic Passengers 660,231 565,595 16.7% Internatio
Slide 12: Our continuing journey
Our continuing For personal use only journey FY17 interim results Adrian Littlewood, chief executive
Slide 13: Growing Travel Markets: new routes and capacity
Strategic priority: Growing Travel Markets 2017 Interim Results For personal use only New routes and capacity underpin passenger growth 27 international Highlights airlines 1 • International airline capacity up 17% in the six months to 31 December with increases in service frequency, aircraft upgaug
Slide 14: Sustainably growing travel markets
Strategic priority: Growing Travel Markets 2017 Interim Results For personal use only Sustainably growing travel markets Highlights Europe / Middle East China USA • European visitors up 13%1 • Chinese visitors up 5%1 • USA visitors up 37%1 • Entry of USA carriers and access performance • Significant
Slide 15: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2017 Interim Results For personal use only Strong performance despite significant disruption Highlights • International terminal PSR up 0.9% on prior year despite ongoing construction work to upgrade the international departure area performance Fi
Slide 16: Major upgrade of international departure retail hub
Strategic priority: Strengthen our consumer business 2017 Interim Results For personal use only Major upgrade of our international departure retail hub Highlights • ~45 units up for tender in the new international terminal expansion • Excellent interest from retailers in securing space performance F
Slide 17: Parking revenue growth in line with passenger growth
Strategic priority: Strengthen our consumer business 2017 Interim Results For personal use only Parking revenue growth in line with passenger growth Highlights • Parking revenue up 11.2% driven by double digit passenger growth • ARPS up 2.6% due to increased car parking space utilisation performance
Slide 18: Investing in our customer experience
Strategic priority: Be fast, efficient and effective 2017 Interim Results For personal use only Investing in our customer experience 45 New mobile international self- Highlights service check-in kiosks • 13 new check-in counters and 45 new mobile check-in kiosks in the international terminal • Upgra
Slide 19: Invest for future growth
Strategic priority: Invest for future growth 2017 Interim Results For personal use only 42 capital expenditure projects currently underway each valued at over $1m Highlights • Completed new taxiway and fully serviced airfield stand • Completed critical water, waste water, electricity and fuel projec
Slide 20: Improving our transport network
Strategic priority: Invest for future growth 2017 Interim Results For personal use only Improving our transport network Highlights • Established a taskforce with the NZ Transport Agency and Auckland Transport focused on improving access to the airport precinct performance Financial • Transport initi
Slide 21: 16.5% growth in property revenue
Strategic priority: Invest for future growth 2017 Interim Results For personal use only 16.5% growth in property revenue Highlights • Rent roll up 12% on the prior year $64.6 million Investment property rent roll • $141m of projects under construction 281 hectares Land available for performance Fina
Slide 22: Investing in our community
Strategic priority: Invest for future growth 2017 Interim Results For personal use only Investing in our community Highlights • Ara, the Auckland Airport jobs and skills hub, is gaining momentum. In the past six months Ara organised 746 training opportunities and placed 61 people into employment per
Slide 23: Regulatory update
Regulatory update 2017 Interim Results For personal use only Economic regulation Highlights • The Commerce Commission completed its input methodologies review in December 2016 • The final decision reaffirmed that the Commission does not set prices for airport services and that its focus is on ensuri
Slide 24: Outlook
Outlook 2017 Interim Results For personal use only Guidance Highlights • Ongoing strong performance to date has been in line with expectations performance • We are now tightening underlying net profit after Financial tax (excluding any fair value changes and other one-off items) guidance to between
Slide 25: Questions
For personal use only Questions
Slide 26: Appendix
For personal use only Appendix
Slide 27: Underlying profit reconciliation
Underlying profit reconciliation 2017 Interim Results 2016 2015 For personal use only Reported Adjustments Underlying Reported Adjustments Underlying For the 6 months to 31 December earnings $m earnings earnings $m earnings $m $m $m $m EBITDAFI 235.9 - 235.9 213.5 - 213.5 Share of profit from associ
Slide 28: Important Notice and Glossary
Important Notice and Glossary 2017 Annual Results For personal use only Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription
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