Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Presentation (August 2023)
28 slides from Auckland International Airport's investor presentation, Aug 17, 2023
Slide 1: Price Setting Disclosure
Auckland Airport Price Setting Disclosure Price setting event 4 Carrie Hurihanganui Chief Executive Philip Neutze Chief Financial Officer 17 August 2023
Slide 2: Important notice
Important notice PSE4 Price Setting Disclosure Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). This document has been prepared for the purpose of complying with the Airport Services Information Disclosure Determination 2010
Slide 3: Overview
Overview Carrie Hurihanganui Chief Executive Page 3
Slide 4: Building a better future for Auckland and New Zealand
Building a better future for Auckland and New Zealand A period of transformative change at Auckland Airport Aeronautical Focus on the Planning for Investment in Regulated returns recovery customer the future PSE4 for PSE4 848,000 102m 2044 $3.1bn1 7.79% of aircraft movements of passenger movements A
Slide 5: Price setting disclosure at a glance
Price setting disclosure at a glance 5-year forecast (PSE4 only) 10-year outlook (PSE4 + PSE5) Passenger Total regulated Overall regulated Passenger Total regulated forecast commissioned return PSE4 forecast commissioned capex capex 23.9m pax $3.1bn 7.79% 27.7m pax $6.7bn FY27 FY32 On Target FY23: 1
Slide 6: Building a better future
Building a better future Auckland Airport’s purpose is to revitalise and inspire as we connect people and place. Our 10-year regulated capital expenditure roadmap intends to deliver $6.7 billion of regulated investment over the next ten years that will add capacity, create more resilience and delive
Slide 7: Key projects that will transform Auckland Airport
Key projects that will transform Auckland Airport Ten-year roadmap Projects are subject to change and may be replaced, deferred or cancelled Page 7
Slide 8: Regulated investment
Regulated investment Key programmes of work over PSE4 and PSE5 include: Terminal Integration - Enabling & airport resilience Terminal Integration - Domestic Processor Terminal Integration - Transport Hub Multi-year programme of enabling works to relocate infrastructure and Domestic jet operations in
Slide 9: Regulated investment
Regulated investment Key programmes of work over PSE4 and PSE5 include: Existing domestic terminal building upgrades Aeronautical programme Contingent runway Photo Provides the upgrades necessary to accommodate domestic jet The aeronautical capacity programme includes upgrades to the This will re-es
Slide 10: Regulated investment
Regulated investment Key programmes of work over PSE4 and PSE5 include: Roading programme Utilities programme Renewals – airfield pavement & ground lighting This programme delivers elements of the long-term transport Desc. Increased capacity of existing utility networks plus new Airfield renewals pr
Slide 11: Regulated investment
Regulated investment Key programmes of work over PSE4 and PSE5 include: Renewals - Other Cargo precinct Renewals to ensure existing assets are fit for purpose, safe to The new cargo terminal project proposes a dedicated and Description operate and enable the efficient day to day operation of the con
Slide 12: PSE4 Price Setting Disclosure
PSE4 Price Setting Disclosure Philip Neutze Chief Financial Officer Page 12
Slide 13: Background
Background Our price setting disclosure follows the aeronautical pricing decision announced on 8 June 2023 as required under Part 4 of the Commerce Act • Under Part 4 of the Commerce Act, Auckland Airport is subject to Information Disclosure Regulation Airfield activities Terminal activities Aircraf
Slide 14: Traffic assumptions
Traffic assumptions Passenger traffic forecast to return to pre-COVID levels in FY25 for domestic and FY26 for international FY23 – FY32 passenger forecast1 30 Millions 27.7 26.9 26.1 25.3 24.5 25 23.9 22.4 20.6 20 19.1 15.8 15.3 14.8 14.2 13.1 13.7 15.9 12.1 15 10.9 10.6 7.8 10 3.2 3.3 3.4 3.1 3.1
Slide 15: PSE4 Price setting decision
PSE4 Price setting decision With significant capital investment right across the airport precinct over PSE4, aeronautical charges will increase but will remain competitive with comparable airports PSE4 domestic aeronautical charges per passenger • In setting PSE4 aeronautical charges, we have consid
Slide 16: Forecast returns
Forecast returns Non-priced IRR below target due to the high value of shared regulated capex allocated to non-priced activities Total regulated returns below Target Return due to allocation of shared PSE4 priced activity returns incl price freeze & post-pricing decision adjustments infrastructure ca
Slide 17: Total regulated capex cashflow over PSE4 & PSE5
Total regulated capex cashflow over PSE4 & PSE5 Total regulated capital expenditure of $6.6 billion over PSE4 and PSE5 • Total regulated capital expenditure cashflow is Forecast regulated investment cash-flow – by commissioning period ($ billion) forecast to peak in FY25 at $1.3 billion, and remain
Slide 18: 10-year capital investment plan
10-year capital investment plan $6.6bn total regulated capex cashflow during PSE4 and PSE5 and $6.7bn forecast to be commissioned Regulated capex (cashflow) of $6.6bn Regulated assets commissioned of $6.7bn ($5.0bn in PSE4, $1.6bn in PSE5) ($3.1bn in PSE4, $3.6bn in PSE5) Terminal Integration - enab
Slide 19: Regulatory timeline
Regulatory timeline Final Input Methodology determination due in December 2023 • Commerce Commission’s draft WACC Input Methodology (“IM”) determination has been released, to be finalised in December 2023 • The draft decision includes material changes to the long-standing WACC IM Methodology that it
Slide 20: Long term funding and capital management
Long term funding and capital management Auckland Airport will continue to prudently manage the balance sheet to fund the infrastructure programme • Auckland Airport continues to target an A- credit rating from Standard & Poor’s • Retaining A- optimises Auckland Airport’s capital structure and is ex
Slide 21: Appendix
Appendix
Slide 22: Appendix: Background
Appendix: Background Regulatory environment • Airport charges are designed to achieve a fair return on our investments in essential long-term national infrastructure • All international and domestic airport charges are collected from airlines and form part of their cost of operations and ticket pric
Slide 23: Appendix: Background
Appendix: Background Information disclosure • New Zealand’s three largest airports including Auckland Airport are subject to Information Disclosure requirements under Part 4 of the Commerce Act • Airports disclose certain performance related information (financial, non-financial, historical and forw
Slide 24: Total regulated commissioned capex in PSE4
Total regulated commissioned capex in PSE4 Auckland Airport plans to commission $3.1 billion of regulated infrastructure during PSE4 Forecast regulated asset base (nominal $) 5,000 3,104 40 (638) • $2.6 billion of priced regulated investment completed and $ Millions 40 (119) commissioned during PSE4
Slide 25: Total regulated commissioned capex in PSE5
Total regulated commissioned capex in PSE5 Auckland Airport plans to commission $3.6 billion of regulated infrastructure during PSE5 Forecast regulated asset base (nominal $) 8,000 3,560 74 1,530 • $3.1 billion of priced regulated investment completed and $ Millions 268 commissioned during PSE5 pric
Slide 26: Appendix: Total Commissioned Regulated investment
Appendix: Total Commissioned Regulated investment $m PSE4 PSE5 PSE4+PSE5 For the year to 30 June 2023 2024 2025 2026 2027 Total Total Total Terminal Integration - enabling & airport resilience 54 91 709 251 277 1,381 348 1,729 Terminal Integration - Domestic Processor 260 260 1,869 2,129 Terminal In
Slide 27: Appendix: Regulated Asset Base
Appendix: Regulated Asset Base $m PSE4 PSE5 For the year to 30 June 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Opening RAB 1,698 1,859 2,215 3,174 3,450 4,152 6,631 6,774 6,682 6,450 Assets commissioned 245 452 1,072 449 885 2,693 450 240 84 94 Revaluations 9 7 7 7 11 15 15 15 15 14 Depreciat
Slide 28: Glossary
Glossary PSE4 Price Setting Disclosure AKL or Auckland Airport Auckland International Airport Limited CPI Consumers price index IM Input methodology IRR Internal rate of return MCTOW Maximum certified take-off weight PAX Passenger movement PSE3 Regulatory price setting event 3 from 1 July 2017 to 30
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