Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2021 Earnings Presentation
39 slides from Auckland International Airport's earnings presentation, Aug 19, 2021
Slide 1: Annual Results Presentation
Annual Results Presentation 19 August 2021 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2021 Annual Results Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription,
Slide 3: Highlights
Highlights
Slide 4: Results at a glance
Results at a glance 2021 Annual Results Highlights Revenue Reported profit Passenger Operating after tax movements cashflow performance $281.1m $464.2m 6.4m $61.0m Financial -50.4% 139.4% -58.5% -65.3% Our continuing journey Earnings per share 31.5 cps Outlook EBITDAFI Underlying Aircraft Capital lo
Slide 5: 2021 reflects the impact of the COVID-19 pandemic
2021 reflects the impact of the COVID-19 pandemic 2021 Annual Results Highlights Aeronautical Retail Transport performance Financial $88.2m revenue -62.2% $17.8m income -87.4% $28.7m revenue -42.9% COVID-19 impacting PAX volumes Difficult retail environment: Less decline than domestic PAX: Our conti
Slide 6: Passenger numbers remain significantly down
Passenger numbers remain significantly down 2021 Annual Results Despite a strong recovery in domestic travel over the last twelve months, total passenger numbers Highlights remain well down on pre-COVID levels Auckland Airport total annual passenger movements Monthly passenger numbers performance 12
Slide 7: We haven't wasted a day getting after what matters
We haven't wasted a day getting after what matters 2021 Annual Results Safe management of border and Investing in core asset resilience Stabilising existing commercial Highlights leading the design of future and developing new trigger-based business and establishing new border models infrastructure
Slide 8: Financial performance
Financial performance
Slide 9: Passenger numbers
Passenger numbers 2021 Annual Results For the year ended 30 June 2021 2020 Change Highlights International arrivals 261,469 3,948,248 (93.4%) International departures 297,592 3,791,012 (92.2%) performance Financial International passengers excluding transits 559,061 7,739,260 (92.8%) Transit passeng
Slide 10: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2021 Annual Results For the year ended 30 June 2021 2020 Change Highlights Aircraft movements International aircraft movements 15,106 44,961 (66.4%) performance Financial Domestic aircraft movements 83,583 94,175 (11.2%) Total aircraft movements 98,689 139,136 (29.1%) Ou
Slide 11: Performance impacted by border restrictions
Performance impacted by border restrictions 2021 Annual Results For the year ended 30 June ($m) 2021 2020 Change Highlights Revenue 281.1 567.0 (50.4%) Expenses1 109.6 306.6 (64.3%) performance Financial Earnings before interest, taxation, depreciation, 171.5 260.4 (34.1%) fair value adjustments and
Slide 12: Property growth, other segments declined
Property growth, other segments declined 2021 Annual Results For the year ended 30 June ($m) 2021 2020 Change Highlights Airfield income 64.0 100.6 (36.4%) Passenger services charge 24.2 133.0 (81.8%) performance Financial Retail income 17.8 141.5 (87.4%) Car park income 28.7 50.3 (42.9%) Investment
Slide 13: Significant cost reductions implemented
Significant cost reductions implemented 2021 Annual Results For the year ended 30 June ($m) 2021 2020 Change Highlights Staff 45.6 62.9 (27.5%) Asset management, maintenance and airport operations 53.4 77.5 (31.1%) performance Financial Rates and insurance 20.8 18.0 15.6% Marketing and promotions 1.
Slide 14: Normalised operating expenses down nearly a third
Normalised operating expenses down nearly a third 2021 Annual Results 200.0 Highlights 180.0 11.7 performance (29.6%) Financial 160.0 11.0 7.8 NZ$m 140.0 7.3 Our continuing 188.6 3.0 2.6 179.0 3.0 journey 120.0 132.7 100.0 Outlook 80.0 Opex Normalised Staff Outsourced Utilities & Marketing & Repairs
Slide 15: Capital expenditure focused on asset upgrades
Capital expenditure focused on asset upgrades 2021 Annual Results Lower aeronautical activity in the year has facilitated the upgrade and renewal of key infrastructure Highlights assets • Capital expenditure in the year totalling $195.7m1 focused on Historical capital expenditure core infrastructure
Slide 16: Capital management and liquidity
Capital management and liquidity 2021 Annual Results Secured liquidity to support the business Credit metrics and key lending covenants Highlights • During 2021 repaid $215 million of debt as it matured in For the year ended 30 June Covenant 2021 2020 the ordinary course and prepaid NZ$425 million o
Slide 17: Balance sheet remains strong
Balance sheet remains strong 2021 Annual Results For the year ended 30 June ($m) 2021 20201 Change Highlights Non-current assets 9,657.0 8,460.2 14.1% Property, plant and equipment 6,832.0 6,060.8 12.7% performance Financial Investment properties 2,641.4 2,054.2 28.6% Other non-current assets 183.6
Slide 18: Our continuing journey
Our continuing journey
Slide 19: Auckland Airport's COVID-19 strategy: Respond, Recover, Accelerate
Auckland Airport’s COVID-19 strategy Respond Recover Accelerate 2021 Annual Results The global spread of COVID-19 and the subsequent imposition of travel restrictions continues to have a Highlights profound impact on the aviation industry • In 2020 Auckland Airport outlined a three-stage plan for it
Slide 20: First line of defence
First line of defence Respond Recover Accelerate 2021 Annual Results The airport’s primary objective throughout the pandemic has been on ensuring the safe and secure Highlights operation of our facility to protect New Zealand’s border • Close coordination with government, border agencies and airline
Slide 21: Continuing to invest in critical infrastructure
Continuing to invest in critical infrastructure Respond Recover Accelerate 2021 Annual Results The low-volume of aeronautical activity continues to provide a unique opportunity to accelerate Highlights infrastructure upgrades whilst minimising disruption • Activity during 2021 focused on the upgrade
Slide 22: Four key projects underway whilst four remain on hold
Four key projects underway whilst four remain on hold 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 22
Slide 23: Artist impression of the new domestic terminal
Artist impression of the new domestic terminal 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 23
Slide 24: A new transport hub at the front door of the terminals
A new transport hub at the front door of the terminals 2021 Annual Results A new transport hub will provide improved passenger amenity, connectivity and capacity for the Highlights integrated terminal precinct • A new transport hub is planned to integrate public transport with commercial operators a
Slide 25: Positioning for the recovery
Positioning for the recovery Respond Recover Accelerate 2021 Annual Results Our retail and transport offering has repositioned to cater to the resumption in domestic travel Highlights Retail Transport 100% performance Financial 80% % of FY19 60% Our continuing 40% journey 20% 0% Jul-20 Sep-20 Nov-20
Slide 26: Investment property continues to perform strongly
Investment property continues to perform strongly 2021 Annual Results Amid the pandemic, our investment property portfolio Portfolio value $2.6bn Highlights continues to perform and provide income diversification • 12.5% increase in rent roll and a 29% increase in the portfolio value continues to de
Slide 27: Exciting fashion outlet centre planned for the precinct
Exciting fashion outlet centre planned for the precinct 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Illustrative only, actual layout will vary 100+ stores m2 23,000+
Slide 28: Operating sustainably to create enduring value
Operating sustainably to create enduring value 2021 Annual Results As a long-term multi-generational business, it is natural for us to take a long-term approach to our place Highlights in the world, the New Zealand economy and the local environment and community in which we operate • Auckland Airpor
Slide 29: Our long-term ambitions
Our long-term ambitions 2021 Annual Results Purpose Place People Community Highlights Kaupapa Kaitiakitanga Whanau Hapori 85% Net Zero 40 | 40 | 20 40% performance Financial Customers rate their overall Scope 1 and 2 carbon Gender balance across Of employees participating in experience as ‘excellent
Slide 30: We will track our progress to these goals
We will track our progress to these goals 2021 Annual Results We have updated our approach to sustainability disclosures, including comprehensive reporting of Highlights performance against climate change and greenhouse gas emissions targets performance Financial Auckland Airport FY21 Auckland Airpo
Slide 31: Still uncertainty but recovery pathway is emerging
Still uncertainty but recovery pathway is emerging 2021 Annual Results The recovery in aviation will need further close coordination across business and government to ensure Highlights an orderly and safe path out • The current nationwide lockdown illustrates that considerable uncertainty remains re
Slide 32: Positioning for a post-COVID world
Positioning for a post-COVID world 2021 Annual Results Re-establishing our aeronautical Supporting the recovery in travel Driving the recovery in our Highlights network and trade for New Zealand commercial business performance Financial Our continuing journey Outlook INSERT IMAGE OF EMPTY RETAIL IN
Slide 33: Outlook
Outlook
Slide 34: Outlook
Outlook 2021 Annual Results Guidance and regulatory Highlights • As we look to the 2022 financial year, we continue to face significant uncertainty regarding the recovery of international passengers. performance Financial • Because of this continued uncertainty, Auckland Airport has suspended underl
Slide 35: Questions
Questions
Slide 36: Appendix: Associates' performance
Appendix: Associates’ performance 2021 Annual Results For the year ended 30 June ($m) 2021 2020 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 27.8 46.7 (40.5%) performance Financial EBITDA 17.1 31.3 (45.4%) Underlying Earnings (Auckland Airport share) 0.4 4.5 (91.1%) Domestic
Slide 37: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2021 Annual Results 2021 2020 For the year ended 30 June ($m) Reported Adjustments Underlying Reported Adjustments Underlying Highlights profit profit profit profit EBITDAFI per Income Statement1 171.5 - 171.5 260.4 - 260.4 Investment property fair value in
Slide 38: Appendix: Normalised opex reconciliation
Appendix: Normalised opex reconciliation 2021 Annual Results For the year ended 30 June ($m) 2021 2020 Change Highlights Reported operating expenses 109.6 306.6 Fixed asset write-offs, impairments and termination costs 16.9 (117.5) performance Financial Expected credit losses / reversals 4.2 (6.5) R
Slide 39: Glossary
Glossary 2021 Annual Results AMTN Australian medium term notes ARPS Average revenue per parking space ASQ Airport Service Quality EBIT Earnings before interest and taxation, EBITDA Earnings before interest, taxation, depreciation and amortisation EBITDAFI Earnings before interest, taxation, deprecia
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