Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Non-Deal Roadshow (2017)
55 slides from Auckland International Airport's roadshow presentation, 2017
Slide 1: 2017 Investor Roadshow: Building the future
2017 Investor Roadshow Building the future…
Slide 2: Agenda
Agenda 2017 Investor Roadshow Page Highlights 1. Highlights 3 Company overview 2. Company overview 6 Strategy for our future 3. Strategy for our future 17 Information Financial 4. Financial information 38 Outlook 5. Outlook 50 2
Slide 3: Auckland Airport at a glance
Auckland Airport at a glance 2017 Investor Roadshow Highlights Company overview 22km from the Strategy for CBD or ~25 our future Associates mins via tunnel • Queenstown (24.99%) • Cairns and Mackay (24.55%) 19.3m annual Information Financial passengers $1.3b investment property 1,500 hectares of Out
Slide 4: Strong foundations
Strong foundations 2017 Investor Roadshow Positive exposure Strong network Attractive customer Strong development Highlights to growth markets base potential 2/3 94% #1 #1 Company overview rds of the global middle class will be Strategy for share of long haul arrivals to our future Highest individua
Slide 5: Why invest in Auckland Airport?
Why invest in Auckland Airport? 2017 Investor Roadshow Largest listed corporate in New Zealand with a market Highlights capitalisation of NZ$7.7 billion (£4.0 billion) and debt of NZ$2.1 billion (£1.1 billion)1 Company overview Third most highly traded stock on NZX10 by value over the last twelv
Slide 6: Company overview
M21/30A0 Auedwios
Slide 7: Robust momentum in the New Zealand economy
Robust momentum in the New Zealand economy 2017 Investor Roadshow • The New Zealand economy has strong Gross domestic product (real) Highlights Quarterly growth and annual growth momentum supported by high inward migration, agriculture and tourism activity 3.4% 3.0% combined with supportive monetary
Slide 8: Regulatory environment
Regulatory environment 2017 Investor Roadshow Overview Highlights • Dual-till regime, with the aeronautical segment subject to information disclosure regulation under the Commerce Act ~50% of revenue is 1986 regulated1 Company overview 350 • Disclosure regime includes monitoring of service standards
Slide 9: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2017 Investor Roadshow New Zealand international airports by passenger numbers 1 Highlights • The largest airport in New Zealand • 75% of international passengers to New Company overview Auckland 18.345 million* Zealand arrive or depart from Auckland Ai
Slide 10: Connecting New Zealand to the world
Connecting New Zealand to the world 2017 Investor Roadshow Auckland Airport connects New Zealand to 46 international destinations Highlights Company overview Strategy for our future London Vancouver Beijing San Francisco Tianjin Seoul Chengdu Tokyo Los Angeles Chongqing Houston Information Dubai Sha
Slide 11: Proven passenger growth
Proven passenger growth 2017 Investor Roadshow Total Passengers at Auckland Airport (excl. Transits) Highlights 20.0 Half 1 Half 2 18.0 Company overview 16.0 Sub Prime Christchurch 14.0 Annual passengers (m) Crisis and Strategy for our future Earthquake Global Avian Flu Recession 12.0 Outbreak Sept
Slide 12: Compares favourably to Australasian airports
Compares favourably to Australasian airports 2017 Investor Roadshow Passenger growth rates %* International vs domestic passenger Highlights mix (thousands)* 12.0% 11.0% Company overview 10.0% Brisbane 5,638 17,242 8.9% 8.2% 8.4% 8.0% 6.9% 6.9% Christchurch 1,656 4,911 Strategy for our future 6.0% M
Slide 13: Strong growth across the business
Strong growth across the business 2017 Investor Roadshow Aeronautical Retail Car park Highlights FY17: $293.9m revenue, 13.8% $162.8m revenue, 5.2%1 $56.3m revenue, 8.1% Company overview Strategy for our future Information Financial • 47% of FY17 revenue • Diverse retail offering with • 11,489 parki
Slide 14: Strong growth across the business
Strong growth across the business 2017 Investor Roadshow Investment Property Hotel portfolio Associates Highlights FY17: $72.9m rent roll, 15.7% 92.1% occupancy, 3.8% $14.9m underlying profit, 29.6% Company overview Strategy for our future Information Financial • $1.3b portfolio value at 30 • Novote
Slide 15: Significant land holdings
Significant land holdings 2017 Investor Roadshow Highlights Company overview Strategy for our future Information Financial Outlook Auckland Airport boundary Central Park, New York • Auckland Airport owns approximately 1,500 hectares of freehold land (268 hectares available for investment property de
Slide 16: Connected business location
Connected business location 2017 Investor Roadshow Highlights Company overview Strategy for our future Information Financial Auckland Airport is centrally located Outlook and well connected • 22km from Auckland’s CBD, direct motorway access • ~25 mins to the CBD, 1 hour to Hamilton • Situated within
Slide 17: Strategy for our future
Strategy for our future
Slide 18: The evolution of our four strategic themes
The evolution of our four strategic themes 2017 Investor Roadshow Highlights Company overview OUTCOMES WE WILL PURSUE Strategy for our future Information Financial Grow travel Invest for Strengthen Be fast, WHAT WE WILL DO and trade future our consumer efficient and markets growth business effective
Slide 19: Core Faster, Higher Stronger strategic themes
Core Faster, Higher Stronger strategic themes 2017 Investor Roadshow Highlights Objective Why it matters Example measures of success1 Primary driver of sustainable • Passenger/cargo growth Grow travel & value for Auckland Airport and • Company Route/market performance overview trade markets New Zeal
Slide 20: Our foundations
Our foundations 2017 Investor Roadshow Highlights Objective Why it matters Example measures of success1 Ensure our people, Safety and Company • overview contractors and partners can Safety outcomes security, always get home safely every day Strategy for our future People Our people are able and • Em
Slide 21: Delivering on our Faster, Higher Stronger ambitions
Delivering on our Faster, Higher Stronger ambitions 2017 Investor Roadshow Highlights Aspirations set in early 2013 June 2013 June 2017 400,000 213,781 356,315 Company overview Double Chinese arrivals to 400,000 by A decrease of 2,955 FY17 (0.8%) in FY17 Strategy for our future $60m Build property
Slide 22: Our track record
Our track record 2017 Investor Roadshow Objective Example outcomes Highlights Setting high safety standard for wide number of PCBU on airport Safety and Staff health and safety engagement increased to 68% in FY17 security, always Company overview Employee recordable injuries down 22% in FY17
Slide 23: Proven passenger and earnings growth over the last five years
Proven passenger and earnings growth over the last five years 2017 Investor Roadshow Highlights Since FY13, passengers increased at a CAGR of Underlying profit has grown at an average rate of 7.0% and the number of airlines using Auckland 12.7% driven by greater passengers and operational Airport is
Slide 24: Putting recent growth in context
Putting recent growth in context; growth has been remarkably resilient over 50 years 2017 Investor Roadshow 50 year passenger growth trend Highlights 10.0 Work begins on: New International international terminal New domestic jet facility Company overview terminal opened expansion 9.0 Arrivals expans
Slide 25: Setting up for the next years
Setting up for the next 50 years 2017 Investor Roadshow Investment today… …enables tomorrow’s growth Highlights 30 year master plan Enables 30+ years of growth Company overview Principled airport development Planning addressing legacy issues supported by efficient and timely development Development
Slide 26: Strategic priority: Growing Travel and Trade Markets
Strategic priority: Growing Travel and Trade Markets 2017 Investor Roadshow Macro environment is supportive of continued, albeit slower, capacity growth Highlights Aircraft technology is making long Fuel Prices rose in 2017 but remain New aircraft growth is forecast to haul routes to NZ more profita
Slide 27: Demand for travel to New Zealand remains high
Demand for travel to New Zealand remains high 2017 Investor Roadshow Highlights Hong Kong China Japan Canada 15% 36% 26% 33% Germany Company overview 42% Strategy for our future Information Financial 37% 48% 33% UK S.Korea USA 24% Outlook Taiwan 32% 42% Philippines 38% India Brazil 35% 24% Chile 38%
Slide 28: Strategy to grow, sustain and diversify
Strategy to grow, sustain and diversify 2017 Investor Roadshow Highlights Company overview Strategy for Grow Capacity Sustain Capacity Diversify markets our future Information Financial • Continue to focus on • Successful three year 4 • Australia campaigns re- underserved markets e.g. seasons 5 sens
Slide 29: Air cargo capacity has increased rapidly
Air cargo capacity has increased rapidly 2017 Investor Roadshow Highlights Auckland-China air cargo Food and beverage is the New Zealand products capacity increased 7.8x fastest growing commodity are highly traded in Asia Company overview over the last 6 years China-Auckland top growth commodities (
Slide 30: Our strategy to grow trade markets
Our strategy to grow trade markets 2017 Investor Roadshow Highlights Auckland Airport is New Zealand’s third largest Cargo Port (by value), handling >200,000 tonnes of cargo annually1 Company overview Strategy for our future Transformational project underway to position Auckland Airport as a world c
Slide 31: Strategic priority: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2017 Investor Roadshow Significant retail development is ongoing Highlights • 57 new retail concepts will be launched over the next 18 months, 42 related to the departures expansion Company • The expanded departures duty free stores and first over
Slide 32: International departures expansion
International departures expansion 2017 Investor Roadshow First phase of the new duty free stores (opened end of June 2017) Highlights Company overview Strategy for our future Information Financial Outlook 32
Slide 33: Car parking and transport network
Car parking and transport network 2017 Investor Roadshow Diverse parking product offering Highlights • Car parking growth continues to be driven by improved customer choice, extra capacity and promotions • Revenue grew 8.1% in FY17. ARPS down 4.2% reflecting Company overview capacity additions. 858
Slide 34: Developing our property business
Developing our property business 2017 Investor Roadshow 15.2% growth in property revenue in FY17 Investment property $72.9m Highlights rent roll • One of the most active developers in the industrial sector. Developments comprise all types of land use except permanent residential and heavy industrial
Slide 35: Strategic priority: Be fast, efficient and effective
Strategic priority: Be fast, efficient and effective 2017 Investor Roadshow Investing in our customer experience 71% Increase in Auckland Highlights Airport app downloads • Invested in innovative new technology in FY17: – sophisticated aeronautical operations modelling 30,000+ since Strata members C
Slide 36: Strategic priority: Invest for future growth
Strategic priority: Invest for future growth 2017 Investor Roadshow Investing more than $1m every working day on airport infrastructure Highlights • Bold 30-year vision developed with international experts (www.airportofthefuture.co.nz) Company • Vision based on a combined domestic and international
Slide 37: Significant projects over the next years
Significant projects over the next 5 years 2017 Investor Roadshow Highlights Phase 6 Arrivals and MPI expansion, check-in Phase 4 expansion Second runway Company overview Pier B extension, Progressing planning 17-19 contact stands and earthworks Strategy for our future Taxiways & stands Information
Slide 38: Financial information
Financial information
Slide 39: FY17 results at a glance
FY17 results at a glance 2017 Investor Roadshow Highlights Revenue Passenger movements 9.7% $629.3m 10.2% 19.0m Company overview Strategy for our future Operating EBITDAFI Aircraft movements 9.9 % $473.1m 7.3% 169,245 Information Financial Outlook Underlying profit Full year dividend per share 16.5%
Slide 40: Strong five year financial performance
Strong five year financial performance 2017 Investor Roadshow Highlights 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR NZ$m Revenue 629.3 573.9 508.5 475.8 448.5 8.8% Company overview Expenses 156.2 143.6 128.5 120.6 117.6 7.4% Earnings before interest, taxation, depreciation, fair
Slide 41: Significant growth in passengers
Significant growth in passengers 2017 Investor Roadshow Passenger movements Highlights 20.0 18.0 Company overview 16.0 8.6 14.0 7.9 12.0 7.2 6.9 Milions 6.8 Strategy for our future 10.0 0.7 0.6 8.0 0.5 0.5 0.4 6.0 8.8 9.7 4.0 7.7 8.1 Information 7.3 Financial 2.0 0.0 2013 2014 2015 2016 2017 Outlook
Slide 42: Runway movements growing
Runway movements growing 2017 Investor Roadshow Aircraft movements Highlights 180,000 160,000 140,000 Company overview 120,000 107,944 114,366 Domestic aircraft 100,000 110,832 107,454 104,264 movements 80,000 60,000 International aircraft movements Strategy for 40,000 our future 44,314 45,809 46,69
Slide 43: Growth across all revenue streams
Growth across all revenue streams 2017 Investor Roadshow Revenue by segment Highlights 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR $m Company overview Airfield income 119.6 103.4 93.3 87.6 81.6 10.0% Passenger services charge 174.3 154.9 140.9 131.5 120.2 9.7% Strategy for our fu
Slide 44: Expenses reflect operational investment for growth
Expenses reflect operational investment for growth 2017 Investor Roadshow Highlights 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR $m Staff 50.5 46.8 46.3 42.5 40.0 6.0% Company overview Asset management, maintenance and airport 55.6 49.1 44.2 40.3 39.6 8.9% operations Rates and in
Slide 45: Associates' performance
Associates’ performance 2017 Investor Roadshow Highlights 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR $m Queenstown Airport (24.99% ownership) Company 18.8% overview Total Revenue 39.0 31.5 24.8 21.9 19.6 EBITDAFI 26.2 21.5 16.6 15.2 12.9 19.4% Domestic Passengers 1,360,158 1,176
Slide 46: Summary balance sheet
Summary balance sheet 2017 Investor Roadshow Highlights 4 year For the year ended 30 June June 2017 June 2016 June 2015 June 2014 June 2013 CAGR NZ$m Cash 45.1 52.6 38.5 41.4 69.2 (10.2%) Company overview Trade and other receivables 55.5 42.3 36.6 29.0 26.8 20.0% Other current assets 3.4 8.0 12.3 3.
Slide 47: Summary cash flow
Summary cash flow 2017 Investor Roadshow Highlights For the year ended 30 June 2017 2016 2015 2014 2013 $m Receipts from customers 615.5 569.5 500.6 471.6 441.9 Company overview Payments to suppliers and employees (156.3) (151.2) (116.0) (116.4) (112.1) Interest & tax paid (152.1) (147.8) (162.4) (1
Slide 48: Credit metrics
Credit metrics 2017 Investor Roadshow Highlights For the year ended 30 June 2017 2016 2015 2014 2013 Debt / debt + market value of equity 19.5% 19.7% 22.5% 24.7% 22.8% Company overview Debt / EBITDAFI 4.3x 4.4x 4.5x 4.2x 3.5x Funds from operations / net debt 16.5% 16.7% 15.3% 16.0% 19.9% Funds from
Slide 49: Capital expenditure
Capital expenditure 2017 Investor Roadshow Capital expenditure by type Highlights Guidance 450 400 350 Capital expenditure ($m) Company overview 300 250 Aeronautical Retail and car parking Strategy for 200 our future Infrastructure and other 150 Property development 100 Information 50 Financial 0 20
Slide 50: Outlook
Outlook
Slide 51: Outlook
Outlook 2017 Investor Roadshow Strategic review Highlights • North Queensland Airports review completed, confirming it is a highly attractive asset but not integral to our current business strategy Company overview Guidance • Relative to recent years, more modest underlying Strategy for our future p
Slide 52: Reference material and further details
Reference material and further details 2017 Investor Roadshow Reference material Highlights Auckland Airport website: https://corporate.aucklandairport.co.nz/ Regulation overview: https://corporate.aucklandairport.co.nz/investors/regulation Company overview Commerce Commission: http://www.comcom.gov
Slide 53: Questions
Questions
Slide 54: Important notice and glossary
Important notice and glossary 2017 Investor Roadshow 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, purchase, or reco
Slide 55: Underlying profit reconciliation
Underlying profit reconciliation 2017 Investor Roadshow 2017 2016 Highlights Reported Adjustments Underlying Reported Adjustments Underlying For the year ended 30 June profit $m profit profit $m profit $m $m $m $m Company overview EBITDAFI 473.1 - 473.1 430.3 - 430.3 Share of profits of associates 1
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