Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (October 2016)
31 slides from Auckland International Airport's debt investor presentation, October 2016
Slide 1: Seven Year Fixed Rate Bond
Seven Year Fixed Rate Bond October 2016 Philip Neutze Chief Financial Officer Stewart Reynolds Manager, Business Intelligence Campbell De Morgan Delivering results Treasury Specialist From 1966 - 2016
Slide 2: Important Notice
Important Notice 2016 October NZDCM Presentation Auckland International Airport Limited (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
Slide 3: Agenda
Agenda 2016 October NZDCM Presentation Page 1. Key terms of the offer 4 2. Company overview 6 3. Strategy for our future 13 4. Financial information 17 5. Outlook 23 Appendices 3
Slide 4: Key terms of the offer
Key terms of the offer 2016 October NZDCM Presentation Issuer Auckland International Airport Limited (“Auckland Airport”) Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Airport ranking equally and without preference among themselves and equally with all other Description
Slide 5: Auckland Airport at a glance
Auckland Airport at a glance 2016 October NZDCM Presentation 17.3 million 91 % share of long haul arrivals to New Zealand annual passengers Highlights 26 international airlines announced Auckland Airport in 2016 Company share of overview 4 international freight airlines 44 international 157,000+ 74%
Slide 6: Company overview
MOVI9/AO Aueduwios
Slide 7: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2016 October NZDCM Presentation New Zealand international airports by passenger numbers Highlights • The largest airport in New Zealand Auckland 16.682 million • ~74% of international passengers to New Zealand arrive or depart from Auckland Company over
Slide 8: Connecting New Zealand to the world
Connecting New Zealand to the world 2016 October NZDCM Presentation Auckland Airport connects New Zealand to 44 international destinations Highlights Company overview London Vancouver Strategy for our future Beijing San Francisco Tianjin Seoul Xi’an Tokyo Los Angeles Chongqing Houston Dubai Shanghai
Slide 9: Regulatory environment
Regulatory environment 2016 October NZDCM Presentation Overview ~50% of revenue is regulated • Dual-till regime, with the aeronautical segment (1st till) subject Highlights 350 to information disclosure regulation under the Commerce Act 300 1986 Company overview • Disclosure regime includes monitori
Slide 10: Proven passenger growth
Proven passenger growth 2016 October NZDCM Presentation Total Passengers at Auckland Airport (excl. Transits) 18.0 Highlights 16.0 Sub Prime Company Christchurch overview 14.0 Crisis and Global Earthquake Recession Avian Flu 12.0 Outbreak Annual passengers (m) SARS Strategy for our future Outbreak 1
Slide 11: Compares favourably to Australasian airports
Compares favourably to Australasian airports 2016 October NZDCM Presentation FY16 passenger growth rates % International vs domestic passenger mix Highlights 12.0% Brisbane 5,260 17,200 9.5% 9.8% 10.0% Christchurch 1,549 4,757 8.1% Company overview 8.0% 7.5% 7.1% 6.2% Melbourne 9,165 24,711 6.0% 3.8
Slide 12: Diverse business activities
Diverse business activities 2016 October NZDCM Presentation Aeronautical Base • ~50% of revenues come from aeronautical activities • 8 new airlines announced and 15 new routes established in FY16 Highlights • Continued focus on route development Diverse Retail Offering Company overview • Significant
Slide 13: Strategy for our future
Strategy for our future
Slide 14: Our strategy
Our strategy 2016 October NZDCM Presentation Adopt an ambitious and innovative approach to help Highlights New Zealand to sustainably unlock the growth opportunities in travel, trade and tourism Grow Travel Markets Company overview Strengthen and extend our retail, transport and hotel Strategy for b
Slide 15: Delivering on our ambitions
Delivering on our ambitions 2016 October NZDCM Presentation In 2013 we established several ambitious targets under our Faster, Higher, Stronger growth strategy Highlights Aspirations: How we tracked in FY16: Company overview 400,000 359,270 Double Chinese arrivals to 400,000 An increase of 66,835 in
Slide 16: Investing for future growth
Investing for future growth 2016 October NZDCM Presentation • Bold 30-year vision developed with international Highlights experts (www.airportofthefuture.co.nz) • Vision based on a combined domestic and Company international terminal as well as an efficient, overview affordable and staged developmen
Slide 17: Financial Information
Financial Information
Slide 18: Strong five year financial performance
Strong five year financial performance 2016 October NZDCM Presentation For the year ended 30 June 2016 2015 2014 2013 2012 CAGR NZ$m Highlights Revenue 573.9 508.5 475.8 448.5 426.8 7.7% Expenses 143.6 128.5 120.6 117.6 107.5 7.5% Earnings before interest, taxation, depreciation, Company overview fa
Slide 19: Summary balance sheet
Summary balance sheet 2016 October NZDCM Presentation For the year ended 30 June 2016 2015 2014 2013 2012 NZ$m Highlights Cash 52.6 38.5 41.4 69.2 42.8 Trade and other receivables 42.3 36.6 29.0 26.8 23.1 Company overview Other current assets 8.0 12.3 3.2 3.6 3.4 Current assets 102.9 87.4 73.6 99.6
Slide 20: Credit metrics
Credit metrics 2016 October NZDCM Presentation For the year ended 30 June 2016 2015 2014 2013 2012 Highlights Debt / debt + book value of equity 30.7% 33.8% 31.8% 29.0% 28.6% Debt / debt + market value of equity 19.7% 22.5% 24.7% 22.8% 25.8% Company overview Funds from operations / gross debt (S&P m
Slide 21: Funding
Funding 2016 October NZDCM Presentation • Auckland Airport sources debt funding Debt maturity profile as at 30 June 2016 from a variety of markets and maintains 450 Highlights 400 a wide range of debt maturities 350 • Weighted average maturity of existing 300 Millions 250 facilities of 4.3 years Com
Slide 22: Capital expenditure
Capital expenditure 2016 October NZDCM Presentation 400 350 2016 2015 Change For the year ended 30 June $m $m Highlights 300 250 Renewal 18.4 13.7 34.3% Capex $m 200 Growth 224.8 133.9 67.9% Company overview 150 Total capital expenditure 243.2 147.6 64.8% 100 50 Strategy for our future Depreciation
Slide 23: Outlook
Outlook
Slide 24: Outlook
Outlook 2016 October NZDCM Presentation Guidance Supportive macro environment Highlights • Ongoing strong growth and performance means that Travel industry benefiting from we are confident that the Company will again deliver continued favourable drivers strong financial results in the next 12 mont
Slide 25: Contact details
Contact details 2016 October NZDCM Presentation Debt investor inquiries Campbell De Morgan Treasury Specialist DDI: +64 9 255 9029, Mobile: +64 27 478 3243 campbell.demorgan@aucklandairport.co.nz 25
Slide 26: Questions
Questions
Slide 27: Appendices
Appendices
Slide 28: Significant land holdings
Significant land holdings 2016 October NZDCM Presentation Highlights Company overview Strategy for our future Information Financial Outlook Auckland Airport boundaries Auckland CBD (transposed) • Auckland Airport owns approximately 1,500 hectares of freehold land with ~300 hectares available for inv
Slide 29: Strong revenue growth across the business
Strong revenue growth across the business 2016 October NZDCM Presentation Revenue by segment Highlights For the year ended 30 June 2016 2015 2014 2013 2012 CAGR $m Airfield income 103.4 93.3 87.6 81.6 77.3 7.5% Company overview Passenger services charge 154.9 140.9 131.5 120.2 83.1 16.8% Terminal se
Slide 30: Runway movements growing
Runway movements growing 2016 October NZDCM Presentation Aircraft movements Highlights 180,000 160,000 140,000 Domestic aircraft 120,000 movements 107,929 Company 100,000 110,421 110,832 107,454 overview 104,264 80,000 International aircraft 60,000 movements 40,000 20,000 45,094 44,314 45,809 46,692
Slide 31: Slide 31
Auckland International Airport — Debt Investor Presentation (October 2016) on 6ix