Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (November 2015)
26 slides from Auckland International Airport's debt investor presentation, November 2015
Slide 1: Seven Year Fixed rate bonds
Seven Year November 2015 Fixed rate bonds
Slide 2: Important Information
Important Information Auckland Airport intends to make an offer of fixed rate bonds (Bonds) in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA). Except for the interest rate and maturity date, the Bonds will have identical rights, privileges, li
Slide 3: Indicative Terms Sheet
Indicative Terms Sheet Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Airport ranking equally and without preference among themselves and equally with all other Description of Bonds outstanding unsecured and unsubordinated indebtedness of Auckland Airport (except indebted
Slide 4: Company overview
Company overview Investor update Philip Neutze, Acting Chief Financial Officer Campbell De Morgan, Treasury & IR specialist
Slide 5: Company position in the group
Company position in the group Investing in Auckland International Airport Limited – the parent Auckland International Airport Limited is listed on the NZX and ASX • Acquired 24.55% ownership of North Auckland International Airport Limited (the Issuer) Queensland Airports (Cairns and Mackay) in Janua
Slide 6: Aeronautical assets
Aeronautical assets • Single 3,535m runway and associated taxiways and aprons, able to accommodate all current aircraft types, including A380 and Boeing 787 Dreamliner • Main taxiway can function as a standby runway in emergencies • Existing and planned northern runway 2,150m (parallel to main runwa
Slide 7: Significant land holdings
Significant land holdings Auckland Airport boundaries Auckland CBD (transposed) • Auckland Airport owns approximately 1,500 hectares of freehold land (~298 hectares available for IP development) • Land value NZ$3.2 billion as at 30 June 2015 • Vacant land enables staged and affordable expansion of a
Slide 8: Aeronautical overview
Aeronautical overview Investor update
Slide 9: New Zealand's busiest airport and our international gateway
New Zealand’s busiest airport and our international gateway • Auckland Airport is the largest and busiest airport in New Zealand in terms of passenger movements and revenue • International passengers represented 51% of total passenger movements in the year to 30 June 2015, the highest proportion of
Slide 10: Passenger volume growth and volatility
Passenger volume growth and volatility 12 months to 12 months to Change Auckland Airport 30 June 2015 30 June 2014 % International passengers excluding transits 8,124,435 7,687,836 5.7 Transit passengers 493,756 462,560 6.7 Total international passenger movements 8,618,191 8,150,396 5.7 Domestic pas
Slide 11: Aircraft up-gauging delivers benefits
Aircraft up-gauging delivers benefits Aircraft movements and MCTOW 12 months to 12 months to Change 30 June 2015 30 June 2014 % Aircraft movements International departures 46,692 45,809 1.9 Domestic aircraft movements 104,264 107,454 (3.0) Total aircraft movements 150,956 153,263 (1.5) MCTOW 1 (tonn
Slide 12: Future Investment
Future Investment Investor update
Slide 13: Investing in capacity for growth
Investing in capacity for growth 2015 progress • Addressed initial capacity priorities and took first steps on path to 30 year plan (extra MPI screening space, two new baggage belts at the international terminal adding +40% capacity) • Supported domestic fleet changes with two new regional aircraft
Slide 14: Investing in capacity for growth (continued)
Investing in capacity for growth (continued) Key focus areas for coming year • Commencing Level 1 redevelopment construction following design, scope and consultation outcomes • Staged expansion of Pier B to support international growth and fleet changes • Develop further domestic stand and gate capa
Slide 15: Strong property momentum
Strong property momentum Development activity has never been higher • Q4 2015 had $162m worth of development projects under construction – quadruple our best prior period • 87% of projects pre-leased (excl. Quad 7 office) Growing our logistics core • 14,000m2 expansions including DHL Express, CEVA L
Slide 16: Demand supports hotel expansion
Demand supports hotel expansion • ~50% expansion to Ibis budget hotel in December 2014 with an additional 73 rooms • Preferred site identified for a third hotel adjacent to international terminal • First stage of conceptual design and feasibility completed • Clear on product – expected to comprise 2
Slide 17: Financial performance and borrowings
Financial performance and borrowings Investor update
Slide 18: Five year results overview
Five year results overview Auckland International Airport Limited 30 June 2015 30 June 2014 30 June 2013 30 June 2012 30 June 2011 (Parent only) $’M $’M $’M $’M $’M Revenue 520.7 488.5 469.1 441.1 411.6 Expenses 122.8 115.0 117.6 108.5 99.5 Earnings before interest expense, taxation, depreciation, f
Slide 19: Key credit metrics
Key credit metrics Auckland International Airport Limited 30 June 2015 30 June 2014 30 June 2013 30 June 2012 30 June 2011 (Parent only) S&P Long-term credit rating A- (Stable) A- (Stable) A- (Positive) A- (Stable) A- (Stable) FFO / average net debt 15.6% 18.5% 20.7% 19.8% 19.2% FFO interest cover 3
Slide 20: Resilient passenger growth underpins credit strength
Resilient passenger growth underpins credit strength • The business has been resilient during times of stress in global economies and during times of external negative events. Total Passengers at Auckland Airport (excl. Transits) 18,000,000 16,000,000 Sub Prime 14,000,000 Crisis and Christchurch Glo
Slide 21: Auckland Airport borrowings
Auckland Airport borrowings • Auckland Airport currently utilises a mixture of NZ DCM term bonds, bank facilities, USPP notes, commercial paper and money market facilities • As at 30 June 2015, Auckland Airport had: • $1.723 billion total drawn debt • $220 million committed but undrawn facilities •
Slide 22: Auckland Airport borrowings
Auckland Airport borrowings Drawn debt maturity profile – as at 30 June 2015 Drawn borrowings by category The ANZ, Westpac and BNZ standby facilities all Upcoming debt facility maturities support our commercial paper programme, which Type Maturity Date Drawn had a balance of $117.6 million as at 30
Slide 23: Regulatory and guidance
Regulatory and guidance Investor update
Slide 24: Regulatory environment
Regulatory environment • Dual-till regime under the Commerce Act 1986 with information disclosure regulation • Aeronautical till faces limited competition and therefore subject to information disclosure regulation • Airport Authorities Act 1966 provides for and requires: • Airports to set charges as
Slide 25: Guidance
Guidance • We expect total capital expenditure of between $230 million and $260 million in FY16, including approximately $135 million of aeronautical projects • Aeronautical capital expenditure will continue firming over the remainder of the current aeronautical pricing period (PSE2) reflecting high
Slide 26: Bilao
Bilao
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