Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2012 Earnings Presentation
27 slides from Auckland International Airport's earnings presentation, Feb 29, 2012
Slide 1: Auckland Airport Interim Results December 2011
A Higher Altitude ….. Auckland Airport Interim Results December 2011 ….. And Still Climbing 2012 Interim Results 1
Slide 2: Presenters and presentation notice
Simon Moutter Chief Executive Simon Robertson Chief Financial Officer This interim results presentation dated 29 February 2012 provides additional comment on the media and financial materials released at the same date. As such, it should be read in conjunction with, and subject to, the explanations
Slide 3: A half year of high performance
A half year of high performance Profit growth momentum delivered via a focus on strong business execution throughout the organisation Clear goals combined with parallel execution of supporting initiatives expands choices and amenities for customers, powers up opportunities for Auckland Airport and g
Slide 4: The highs of the half
The highs of the half Auckland Airport staff and airport partners were a championship winning operations team, delivering a smooth, successful and safe RWC 2011 Daily services from the Chinese based carrier, China Southern Airlines commenced, contributing to a substantial lift in Chinese arrivals Pa
Slide 5: Changing shape of travel markets continues
Changing shape of travel markets continues In March 2009 our growth strategy placed a significant emphasis on targeting Asian passenger growth Market dynamics continue to change with Asia becoming even more important to New Zealand as traditional markets are continuing to deliver, at best, lackluste
Slide 6: Imagining the possibilities
Imagining the possibilities NZ received just 0.2% of the Chinese outbound tourism market in 2011 In 2011, Chinese visitors to NZ spent more than double German visitors and outstripped the American visitor market for total spend (Source: International Visitor Survey Statistics for NZ) Chinese average
Slide 7: Results in more detail
Results in more detail 2012 Interim Results 7
Slide 8: Passenger growth drives revenue drives profit
Passenger growth drives revenue drives profit Total revenue of $215.9m (+ 8.9%), driven by increased passenger volumes, from RWC and new route developments Exceptional retail revenue of $61.8m (+12.8%), rewarding the capital expenditure in prior year and the proactive landlord model Underlying profi
Slide 9: Results overview
Results overview 2012 Interim Results 9
Slide 10: Underlying profits explained
Underlying profits explained 2012 Interim Results 10
Slide 11: Passenger growth resists aviation volatility
Passenger growth resists aviation volatility Our delivery against passenger growth targets has been strong despite challenges in the aviation industry, tourism and global markets At Auckland Airport, international passenger volumes were positively impacted by the RWC 2011 and new services (China arr
Slide 12: Auckland Airport aircraft weight trends
Auckland Airport aircraft weight trends Domestic MCTOW recovered from the International MCTOW growth in six dip in prior year following Pacific Blue’s months to December 2011 driven by new departure and increased services from services Air NZ and Jetstar 2012 Interim Results 12
Slide 13: RWC benefits – real but modest
RWC benefits – real but modest Our estimate of the profit benefit from the RWC for Auckland Airport is $2 million before tax Auckland Airport saw increased international passenger arrivals from rugby nations Substitution of other travellers was evident – a decrease in New Zealander departures during
Slide 14: Strong revenue performance
Strong revenue performance MCTOW and passenger growth boost Airfield and Passenger Service Charge revenue Retail revenue shows exceptional growth from international terminal redevelopment Car parking continues to deliver strong performance through online marketing and yield management Other revenue
Slide 15: Expenses growth fuelling revenue growth
Expenses growth fuelling revenue growth The RWC saw an increase in repairs, maintenance, cleaning, contracted services and temporary staff in the six months to December 2011. Further increases were in property maintenance (with higher recoverables) and volume related utility expenditure. Council rat
Slide 16: Busy debt refinancing period in 2011
Busy debt refinancing period in 2011 The third and final series of the USPP was drawn down in July 2011. A new six-year $100 million bond at 5.47% was issued in October 2011. A new multi-currency bank facility (NZD $135m and AUD $40m) with expiry date 31 January 2015 commenced in October 2011. The s
Slide 17: Growth strategy driving results for shareholders
Growth strategy driving results for shareholders Gross returns - local currency FY12 Interim dividend of 4.40 cps, 1,800 a 10.0% increase from 4.00cps interim for FY11 1,600 Record date for dividend is 1,400 19 March 2012 with payment date 1,200 on 2 April 2012 1,000 Dividend reinvestment plan suspe
Slide 18: Growing air services remains a top priority
Growing air services remains a top priority Route development in Asia is showing real results through increased visitors from Singapore (up 60.5%) and China (up 21.8%) from prior period United’s new service to Houston awaits 787 aircraft delivery. “The 787 is coming to United mid-year, and one of ou
Slide 19: Retail sales growth continues post refurbishment
Retail sales growth continues post refurbishment International terminal development boosting retail revenue in all areas: • Duty Free (arrivals and departures) • Food and Beverage (outlets before and after security) • Specialty stores Passenger mix also contributed to retail income per international
Slide 20: Car park yield management delivers results
Car park yield management delivers results Online parking now makes up 18% of total car park revenue Parking products available to suit all market requirements Continuing to fine-tune our offers, our marketing and our add-on products to maximise car parking performance and revenue yield management W
Slide 21: Property portfolio delivers
Property portfolio delivers Property segment revenues up $1.8m (+10.0%) reflecting property development completions in a very tough market New accommodation product performed very strongly. In December 2011, Novotel (20% owned) occupancy rates were 79% (average 72% in the six month period) and Formu
Slide 22: NQA continues to grow EBITDA
NQA continues to grow EBITDA Cairns performs strongly in light of global events such as Japan earthquake with international passenger numbers still up 6.7% Revenue and EBITDAFI easily surpass prior period performance up 7.4% and 16.2% respectively Cash dividends received relating to the six months p
Slide 23: Queenstown international growth continues
Queenstown international growth continues Passenger volume growth continues to surpass expectations with international passenger growth of 30.1% Operating expenses up $0.5m from volume related expenditure, promotions and planning consultation Depreciation and interest increase following capital expe
Slide 24: Price consultation with airlines in progress
Price consultation with airlines in progress Auckland Airport commenced confidential aeronautical pricing consultation under the Airport Authorities Act in August 2011 Pricing consultation covers landing charges, passenger service charges and terminal service charges The consultation process to date
Slide 25: Path towards lifting the domestic passenger experience
Path towards lifting the domestic passenger experience Current domestic process elements are experiencing constraints right through the processing chain from surface access through to aircraft aprons The advent of larger jet aircraft operating today and proposed to be added will further exacerbate t
Slide 26: Looking ahead
Looking ahead We believe we provide a low risk exposure to the Asian growth story Continuing to explore new partnerships, business extensions, information sources and technologies to increase New Zealand’s share of growth in the Asia-Pacific region Quality execution of business strategies across the
Slide 27: Questions?
Questions? 2012 Interim Results 27
Auckland International Airport — H1 FY2012 Earnings Presentation on 6ix