Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2016 Earnings Presentation
27 slides from Auckland International Airport's earnings presentation, Feb 19, 2016
Slide 1: Delivering Results: Interim Report 2016
2016 Interim Results Delivering Results Interim Report 2016
Slide 2: Interim results presentation notice
2016 Interim Results This interim results presentation dated 19 February 2016 provides additional comment on the media and financial materials released before the market opened on the same date. As such, it should be read in conjunction with, and subject to, the explanations and views provided in th
Slide 3: Summary
2016 Interim Results Summary FY16 interim results Adrian Littlewood, chief executive
Slide 4: Delivering results
2016 Interim Results Delivering results Passenger movements Total profit 6.7% 8.4m 24.8% $115.8m International 4.3m Up 7.2% | International transits 0.3m Up 4.5% Domestic 3.9m Up 6.2% Revenue Underlying profit 11.6% $280.6m 18.6% $104.1m Operating EBITDAFI Interim dividend per share 13.0% $213.5m 16
Slide 5: Highlights
2016 Interim Results Highlights Grow travel markets • Strong momentum across all markets with new carriers and improved market structure providing enhanced air capacity to both emerging and developed markets • Tourism industry is adjusting to the new growth profile and responding to the lift in dema
Slide 6: Performance
2016 Interim Results Performance Financial FY16 interim results Philip Neutze, chief financial officer
Slide 7: Strong operating leverage
2016 Interim Results Strong operating leverage Half year financial results 6 months to 6 months to Change 31 Dec 2015 31 Dec 2014 % $m $m Revenue 280.6 251.4 11.6 Expenses 67.1 62.4 7.5 Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 213.5 189.0
Slide 8: Underlying profit reconciliation
2016 Interim Results Underlying profit reconciliation 6 months to 31 Dec 2015 6 months to 31 Dec 2014 Reported Underlying Reported Underlying Adjustments Adjustments earnings earnings earnings earnings $M $M $M $M $M $M EBITDAFI 213.5 - 213.5 189.0 - 189.0 Share of profit from associates 4.1 2.7 6.8
Slide 9: Associates’ strong underlying profit
2016 Interim Results Associates’ strong underlying profit 6 months to 6 months to Change 31 December 31 December % 2015 2014 Queenstown Airport (24.99% ownership) $M $M Total Revenue 15.7 13.0 20.8 EBITDAFI 11.7 9.2 27.2 Domestic Passengers 565,595 498,506 13.5 International Passengers 264,965 221,2
Slide 10: Passenger growth underpinning performance
2016 Interim Results Passenger growth underpinning performance Auckland Airport passenger movements 6 months to 6 months to Change 31 December 31 December % 2015 2014 International arrivals 2,209,520 2,054,639 7.5 International departures 2,070,923 1,937,548 6.9 International passengers excluding tr
Slide 11: Runway movements growing again
2016 Interim Results Runway movements growing again Aircraft movements and MCTOW 6 months to 6 months to Change 31 December 31 December % 2015 2014 Aircraft movements International aircraft movements 24,342 23,678 2.8 Domestic aircraft movements 53,351 53,203 0.3 Total aircraft movements 77,693 76,8
Slide 12: Strong revenue growth across business
2016 Interim Results Strong revenue growth across business 6 months to 6 months to 31 December 31 December Change 2015 2014 % $m $m Airfield income 50.2 46.9 7.0 Passenger services charge 75.5 69.5 8.6 Retail income 78.6 64.8 21.3 Car park income 26.0 23.4 11.1 Investment property rental income 28.0
Slide 13: Controlling expense growth
2016 Interim Results Controlling expense growth 6 months to 6 months to 31 December 31 December Change 2015 2014 % $m $m Staff 22.4 22.1 1.4 Asset management, maintenance and airport operations 23.5 21.6 8.8 Rates and insurance 5.7 5.4 5.6 Marketing and promotions 6.3 6.0 5.0 Professional services a
Slide 14: Unprecedented access to the world
2016 Interim Results Unprecedented access to the world • Strong period of expansion in air services with six new airlines having commenced or announced services to Auckland in the last twelve months • New capacity has further strengthened national hub status and is a further step on path to southern
Slide 15: Network analysis exposes underserved demand
2016 Interim Results Network analysis exposes underserved demand China is Canada is Germany is underserved underserved underserved UK is underserved USA is Japan is underserved underserved India is Australia is Brazil is underserved underserved underserved South East Asia is Chile is underserved und
Slide 16: Tourism sector maintains focus on growth
2016 Interim Results Tourism sector maintains focus on growth NZ tourism intensity low compared with peer group countries • After several years of modest increases tourism sector now in growth mode. Total international New Zealand #67 in world by visitation per visitor arrivals to New Zealand for th
Slide 17: Accommodation supply side response
2016 Interim Results Accommodation supply side response Accommodation market responding to underlying • Inbound tourism growth enhancing economic signals accommodation sector occupancy and yields (e.g. December YTD average daily rate Auckland example across New Zealand +12% in December 2015) • Impro
Slide 18: In the flow of airport capacity development
2016 Interim Results In the flow of airport capacity development • Following intensive period of detailed planning, strong pipeline of infrastructure development projects adding important capacity – was critical to supporting summer peak demand and new airline services • Planned approach has also al
Slide 19: Future investment
2016 Interim Results Future investment • Major development projects underway focus on core terminal and aviation capacity including: • Phase 3 – International terminal expansion of core processing, passenger dwell space and retail footprint space will significantly improve passenger amenity. Estimat
Slide 20: Operational innovation delivering for partners and passengers
2016 Interim Results Operational innovation delivering for partners and passengers • Collaborative decision making (CDM) with partners across Auckland Airport crucial to managing increasing demand efficiently • Combination of process innovation and new technology has enabled ongoing lift in processi
Slide 21: Strong momentum in retail
2016 Interim Results Strong momentum in retail • Strong lift in retail revenue (+21% PCP) follows two year programme of increasing footprint, re-leasing, product mix changes and duty free tender • Strong performance by primary retail categories, in particular Specialty, with sales up 27% • Duty Free
Slide 22: Transport growth continues
2016 Interim Results Transport growth continues • Growth continues to be driven by broad programme of improved customer choice, extra capacity and promotions: Product – Valet now well established at both international and domestic. Valet exits up 70%. New remote “Wait Zone” product introduced to o
Slide 23: Investment property and hotels
2016 Interim Results Investment property and hotels • Property continues to perform strongly reflecting the underlying demand in Auckland for close, connected and high quality sites. Continue to be optimistic on development outlook based on tenant enquiry. • Leasing programme supporting ongoing lift
Slide 24: Regulatory and other matters
2016 Interim Results Regulatory and other matters Upcoming regulatory and pricing decisions • Commission aiming to publish its draft input methodology amendments in June 2016 in relation to the regulatory disclosure regime • Key issues under discussion include: WACC percentile A new forward-look
Slide 25: Commitment to our community and our people
2016 Interim Results Commitment to our community and our people • Continue to increase focus on health & safety performance leading to improved outcomes e.g. 250% increase in health and safety incident reporting and a 25% reduction in the lost time injury frequency rate for employees • Using our sca
Slide 26: Building on a foundation of success
2016 Interim Results Building on a foundation of success Look back – celebrating 50 years • Celebrated 50th anniversary on 29th January and can reflect on 50 years of continuous growth • Passenger volumes have grown from 750k in the first year to over 16m during the last 12 months • While our busine
Slide 27: 2016 Interim Results
2016 Interim Results
Auckland International Airport — H1 FY2016 Earnings Presentation on 6ix